Stocks Rebound as Traders Await Tariff Clarity; China Vows to Retaliate
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Good morning, I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Karen, markets look set for a turnaround as President Trump continues to send mixed messages on trade. In Oval Office remarks heard on Bloomberg, the president threatened a 50% tariff on China if it doesn't pull back on a 34% U.S. tariff. At the same time, Trump says he is willing to negotiate. We'll be...

talking to China. We'll be talking to a lot of different countries. And I think, you know, if we can make a really fair deal and a good deal for the United States, not a good deal for others. This is

America first. It's now America first. President Trump is not saying what a fair deal would look like, and he didn't answer when asked if he'd consider lowering rates below the minimum 10%. China is vowing to fight to the end if the U.S. insists on imposing higher duties that are set to kick in tomorrow.

Well, Nathan, some Wall Street titans are expressing opposition at Trump's tariff policy. And Bloomberg's John Tucker joins us with the very latest. John, good morning. Good morning, Karen. Billionaire Ken Griffin, a Republican mega-donor, said President Donald Trump's latest tariffs amount to a hefty tax on families and are a huge policy mistake by the administration.

Larry Fink, head of the world's largest asset manager at BlackRock, told a gathering of chief executives and investors in New York, as heard here on Bloomberg Radio, the U.S. economy is weakening as we speak, warning that the market turmoil triggered by the tariffs is rippling across corporate America and the world. I am troubled by...

that we are not the stabilizer as a country. We are destabilizing. And I think this is what the financial markets are trying to grapple with. The highest profile break with Trump over tariffs may be Elon Musk. The Washington Post reports Musk has made personal appeals to the president to end the tariffs, going over the heads of other administration officials. Over the weekend, Musk took aim at the administration official who's been key to developing the tariff plans, the White House trade advisor, Peter Navarro, and questioned his credentials.

In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. And speaking of Elon Musk, his wealth has taken a pounding over the last few months, while a fellow billionaire has been weathering the storm. Let's get more on that now with Bloomberg's Lisa Mateo. Good morning, Lisa. Yeah, good morning, Nathan. It is quite a hit for Musk. His fortune fell to almost $298 billion on Monday when he lost nearly $4.5 billion after Tesla stock extended its losses. Now,

Now, it's the first time his net worth has dropped below $300 billion since November, as his role as an advisor for President Trump has really made Tesla his target for protest vandalism. But Musk is still the world's richest person, despite losing nearly $135 billion so far this year. Now, on the flip side, you have Berkshire Hathaway's Warren Buffett.

He's among the rare few winners after President's tariffs triggered this sell-off. Now, his net worth has climbed $11.5 billion this year to nearly $154 billion. That's according to the Bloomberg Billionaires Index. Now, that's despite a $14.5 billion decline since April 2nd, when his net worth reached its highest level in five years. Now, experts say it really shows how the property and casualty sector remain pretty much protected from global trade.

Lisa Mateo, Bloomberg Radio. All right, Lisa, thank you. As for the markets this morning, futures are moving higher. This follows Manic Monday on Wall Street. Stocks started with another sell-off with the Nasdaq 100 dropping 4.5% at the open. Then it surged 9.4% on a story the White House swiftly denied that the administration was seriously considering a delay to tariffs to allow for negotiations.

Then it fell 6.2%. That was all in the first hour of trading. The index ended the day up a mere two-tenths percent. Keith Lerner is co-chief investment officer at Truist. You're going to see these swings back and forth. Each headline is going to be over-extrapolated and there's going to be a lot of emotion. So I think using a prudent dollar cost average approach into the market, it makes a lot of sense right here.

Keith Lerner at Truist. At one point yesterday, the S&P added over $2.5 trillion in value during a seven-minute period. Karen, Democratic Senator Elizabeth Warren is lashing out at President Trump's tariff, saying they risk throwing millions of Americans out of work. The Massachusetts Democrat says she fears a recession because of the tariff policy.

Look, I am really worried about whether we are already in a recession or just right on the edge. All of the lights are flashing red. And Larry Fink points this out, but he is not the only one. There are a lot of folks

who are starting to say this and a lot of evidence in that direction. Democratic Senator Elizabeth Warren made those comments on Bloomberg's balance of power. You can hear the full interview on the Bloomberg Talks podcast or watch it on the Bloomberg Podcasts page on YouTube.

Well, Nathan, Chicago Fed President Austin Goolsbee says there's a lot of anxiety among business leaders about tariffs sparking supply disruptions and inflationary pressures. Goolsbee spoke with CNN. The anxiety is if these tariffs are as big as what are threatened on the U.S. side, and if there's massive retaliation, and then if there's counter-retaliation again,

it might send us back to the kind of conditions that we saw in 21 and 22 when inflation's raging out of control, that it could send us back to the supply disruptions of the form that we saw in 2020 beginning of COVID. Chicago Fed President Austin Goolsbee and his fellow central bankers have kept interest rates unchanged this year, waiting to see how tariffs and government policies impact the economy. Well, Karen, as the global trade war heats up, the European Union is cooling things somewhat.

When it comes to American bourbon, let's go to London, get the details from Bloomberg's Ewan Potts. Good morning, Ewan. Nathan and Karen, American whiskey is still on the menu in Europe, but Donald Trump says it's not enough. The US president rejecting the European Union's latest proposal to drop tariffs on all bilateral trade in industrial goods, accusing the bloc of maintaining other barriers to trade.

In terms of the detail of the latest EU retaliatory tariffs, while bourbon is spared, the 27 EU nations are to target US exports, including motorcycles, tobacco, household appliances and poultry. And while further measures are being discussed by the EU for now, US assinants at least can breathe a sigh of relief. Live in London, I'm Ewan Potts, Bloomberg Radio.

All right, Ewan, thank you. Oil on the decline once again. Right now, NYMEX crude oil is up four-tenths of a percent at $60.93 a barrel. Brent is at $64.39. That's up three-tenths of a percent. And Goldman Sachs says it could fall even further. The firm's strategists, fresh from cutting oil forecasts twice in a week, say Brent has the outside potential to fall below $40 a barrel under extreme outcomes.

as the trade war flares and supplies rise. Elsewhere in geopolitics, Karen, President Trump says the U.S. is holding direct talks with Iran, and the next round will take place this weekend. Bloomberg's Amy Morris reports from Washington. President Trump announced the meeting. There's a major meeting going on.

between us and Iran, and that'll take place on Saturday, and it's at top level. And a reporter asked, what happens if diplomacy fails? I think if the talks aren't successful with Iran,

I think Iran is going to be in great danger. It wasn't clear exactly what discussions President Trump was referring to. Iranian officials rejected the idea of direct talks and proposed negotiations with Oman as mediator. In Washington, Amy Morris, Bloomberg Radio. All right, Amy, thank you. On Capitol Hill, more conservative Republicans are worming to the idea of higher taxes on millionaires to pay for President Trump's tax cut promises.

House Freedom Caucus Chair Andy Harris tells Bloomberg a new 40% tax bracket is a reasonable way to do it. Republican Senator Tom Tillis also says he'd be willing to bring back the old top tax bracket of 39.6%. Republicans are considering ending taxes on overtime pay and new write-offs for older Americans and car buyers. They need to cut spending or raise taxes elsewhere to pay for them.

And it's time now for a look at some of the other stories making news in New York and around the world. And for that, we're joined by Bloomberg's Michael Barr. Michael, good morning. Good morning, Karen. The Supreme Court is allowing the Trump administration to use an 18th century wartime law to deport Venezuelan migrants, but says they must get a court hearing before they are taken from the U.S. In a divided 5-4 decision, the court said the administration must give Venezuelans, who it claims are gang members, reasonable time to go to court.

Bloomberg's June Grasso. What the justices said is they have to be allowed to have this due process and they should do it by habeas corpus petition, basically. And it should be filed in a jurisdiction where they're being held. Well, they're being held in Texas. And, you know, Texas immigration courts are not as, shall we say, sympathetic to migrants as courts in other jurisdictions, for example, New York and D.C.,

Bloomberg's June Grasso. Meanwhile, the Supreme Court put off a midnight deadline for the government to return a mistakenly deported Maryland man to the U.S. from El Salvador. That gives the court more time to consider the arguments in the case of Kilmar Armando Abrego Garcia, who is accused of being a gang member, which his family denies.

Health and Human Services Secretary Robert F. Kennedy Jr. plans to tell public health officials to stop recommending fluoridation of drinking water. Kennedy is assembling a task force to focus on the issue. We have a public health crisis now in our country like nothing that we've ever seen before.

When my uncle was president, I was a 10-year-old boy. 3% of Americans had chronic disease. Today, 60%. Currently, about 72% of the U.S. population is connected to fluoridated water systems.

According to a court filing, New York City's congestion pricing program is likely to remain in place for the next several months, while legal wrangling between the state officials and the Trump administration continues. President Trump and his transportation secretary had threatened in February to end the tolling initiative. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Karen. All right, Michael Barr, thank you.

When you have bars in the sky, onboard showers and award-winning in-flight entertainment, it's no surprise that Emirates was recently named the best airline in the world. We fly you to over 140 destinations and with partners across the globe, we connect you to another 1,700 cities across six continents. So when we say we're also the largest international airline, what we really mean is...

If you're going there, so are we. Book now on emirates.com. Fly Emirates. Fly better.

Thrivent can help you plan your finances for the people, causes, and community you love. What makes Thrivent different? A combination of financial services and generosity programs. Thrivent offers advice, investments, insurance, banking, and generosity, as well as resources to fund service projects or direct dollars to causes you care about. With more than 120 years serving clients, you can plan your finances with confidence. Visit Thrivent.com to learn more. Thrivent.

where money means more. Time now for the Bloomberg Sports Update. Here's John Stashower. John, good morning. Good morning, Karen. The National Championship game in San Antonio, Florida and Houston both came in 35-4. Champions of the SEC and Big 12 both outstanding defensively. And sure enough, both teams shot under 40%. The Cougars led almost the entire game, but on the final possession, the Gators led by two. Houston had the ball.

From 12 down to the school's third goal.

national championship in men's basketball. On Western 1, Florida prevailed 65-63. They trailed by at least 9 points in the second half of each of their last three tournament games. Walter Clayton, a most outstanding player, though last night he scored only 11 points. At the guard,

and Rangers took a big step towards the golf course, not the Stanley Cup playoffs. Tampa Bay scored three times in a span of less than two minutes of the first period, went on to win 5-1. At Citi Field, more great Mets pitching. 2-0 win over Miami behind Kodai Senga and three relievers. The Mets have won five in a row. Their team ERA is 1.72. Carlos Rodon's ERA is over five, a second straight shaky start in frigid Detroit. The Tigers won 6-2. The Dodgers are in D.C. They went to the White House.

And then Shohei Otani had a single, triple, and home run, but the Nationals won 6-4. John Staschauer, Bloomberg Sports.

Coast to coast on Bloomberg Radio. Nationwide on Sirius XM. And around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. Investors are hoping to make up some ground from three straight losing sessions on Wall Street following President Trump's tariff rollout last week. But the president is still keeping markets guessing when it comes to where trade policy goes from here.

There can be permanent tariffs and there can also be negotiations because there are things that we need beyond tariffs.

And that was the president speaking in Oval Office comments heard on Bloomberg. Joining us this morning is Stephanie Guild, Senior Director of Investment Strategy at Robinhood Financial. Great to speak with you, Stephanie, as we look at futures point to a higher open finally this morning. But what are you hearing from the president? Sometimes he talks about matching tariff rates from other countries. Sometimes he talks about trade imbalances. What is the message that you're hearing?

Oh, I think it's hard to decipher, as you say. I think I was most encouraged, and I think the markets this morning are most encouraged, by the fact that there was a Politico article that was saying how Besant was trying to talk him into understanding the greater impact on markets and the economy.

I think there was also another couple of articles talking about how there could be actually true legal challenges that could win against this. So I think there's starting to feel like there's movement and enough pressure against that perhaps it won't go as far as originally announced, whereas it felt like

somewhat hopeless the last couple of days. I do think Trump is quite set on making changes. And on the other hand, if you're seeing the reaction from other countries, they...

they are making, you know, they are trying to come with some terms. So it's, there is some hope still. What worries me also is the hope because for investors, that is not a strategy. And, you know, you, you do need, I think, to have some caution with all of these headlines because they could change on an instant. Yeah. Well, we've certainly seen that yesterday when just one headline caused a spike in the market before things dropped back down yesterday. Uh,

How do you make a strategy when we do have this continued mixed messaging from the White House?

I think diversification is key. That's what we've been talking about with our clients. And then also, we recently launched Robinhood Strategies, which actually manages money on behalf of our clients. And in that case, we are spreading across a couple of different ways. One is that we recognize that the world order may be changing a bit and U.S. exceptionalism

Maybe deteriorating in the near term because of not only tariffs, but also because of political policy. Other countries having to step in where the U.S. may have been, and as a result of that, you may get just shifting fiscal spending. So we think having a diversification across the world and not just focusing on the U.S. market is a good idea. And honestly, just having some

extra cash on the side, whether it's in the form of Treasury bills or just earning a good yield and looking for opportunities because there certainly are opportunities forming in this market. Do you see a Trump put, Stephanie? Is there a level that the president's looking at where he might back off?

I don't see it in the stock market. I do think he's looking for it in the bond market. I think he truly wants the dollar weaker and he wants interest rates lower. And I think that, you know, interest rates lower actually helps.

also helps with budget cuts because we had, you know, I think we spent a trillion dollars last year on interest alone, interest payments alone from the government. So I think that's where you see it, and he's certainly gotten some of that on the bond market. But it's, you know, yesterday you saw bond yields go back up a bit because there is the other side of this

tariff coin, which is inflation. And I think another thing to note, Jamie Dimon actually put this in his shareholder letter, which I think was published yesterday, is that there is a case to be made for when you run a deficit, you get a lot of investment on the other side of that. And a lot of that investment has come from foreigners into the country. And how...

if that starts to unwind, that's really, that's downside in a lot of ways. Do you see foreign investment continuing in this environment? Got about a minute left. I think it's going to slow, at least for the near term. I think the same way that CEOs are probably waiting to see what happens. Like, I think just some investment, whether it's domestic or international, is probably going to be on hold while this

continue. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify, or anywhere else you listen. You can also listen live each morning starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg

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And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it, in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.

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