April 22, 2025 • 16 mins
On today's podcast:
1) US stocks are set to bounce back from Monday’s losses as investors nervously weighed up progress on trade talks with India and Tesla’s upcoming earnings. Gold topped $3,500 for the first time.
2) President Donald Trump warned the US economy may slow if the Federal Reserve does not move to immediately reduce interest rates, in his latest broadside against Fed Chair Jerome Powell.
3) Harvard University sued several US agencies and top officials for freezing billions of dollars in federal funding, significantly ratcheting up a high-stakes showdown with the Trump administration.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2 (00:10):
Good morning.
Speaker 3 (00:10):
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today, Karen.
Speaker 2 (00:15):
The bounce back in the markets this morning follows another
selloff on Wall Street on Monday. All three major indexes
fell at least two point four percent. President Trump's demands
on FED Chair J Powell to act on rates are
renewing concern about the President meddling with central bank policy.
Claudia Sam, a former Federal Reserve economist, says it is
a real concern.
Speaker 4 (00:37):
I take it very seriously, and I, you know, this
administration has taken steps, whether it's with the tariffs or
with downsize in the government, that really were, you know,
beyond expectations. So I, you know, the unthinkable is thinkable
with this administration.
Speaker 2 (00:51):
Claudia Sam is currently chief economist at New Century Advisors,
and concerns about Fed independents also have Gold on the
rise again this morning. Earlier top thirty twenty five hundred
dollars an ounce for the first time. Right now it's
at thirty four to sixty seventy cents.
Speaker 3 (01:06):
Well, Nathan, the S and P five hundred is down
by nine percent since Trump unveiled sweeping tariffs earlier this
month on most US trading partners. The chief economist of
Apollo Global Management, Touristen Slock, says a recession is the
most likely scenario if the current tariffs take place.
Speaker 5 (01:23):
Maybe we'll take a few more weeks, maybe the worst
case a few a month or two, but we will
eventually begin to see the net effect if these tariffs
stay in place. And that's why we think there's a
ninety percent chance of a recession if these tariffs stay
at these current levels.
Speaker 3 (01:37):
And Apollo Global Management's tourst end slocks as foreigners own
nineteen trillion dollars of US equities, seven trillion of treasuries,
and five trillion dollars of US corporate bonds, accounting for
about twenty to thirty percent of the total market. He
says the unwinding of those holdings could cause substantial pain.
Speaker 2 (01:55):
And Karen Bloomberg Economics estimates President Trump's tariffs would shave
about two trillion dollars off global output by the end
of twenty twenty seven. Get that part of the story
from bloomberg 'zamy Morris in Washington.
Speaker 6 (02:07):
Analysts find that the president so called Liberation Day tariffs
will mean a historic shock to the world GDP Bloomberg
Economics analysts find that for the US, Trump's tariffs act
like a massive tax hike and is considered a major shock.
They say one casualty could be FED independents. Whether President
Trump attempts to fire FED chair J. Powell or waits
(02:28):
until the end of his term, it now does look
likely that the next FED chief will be picked, at
least in part, based on alignment with Trump's policy preferences.
In Washington, Amy Morris, Bloomberg Radio.
Speaker 3 (02:39):
All right, Amy, thank you. President Trump met with major
retailers at the White House as executive sod really from
tariffs that have destabilized global supply chains and rattled US consumers.
Jordan Fabian Is Bloomberg News White House Editor.
Speaker 7 (02:53):
That china one hundred and forty five percent tariff looms
large over this conversation and used to do work across
purposes when you have these companies coming in asking for
a relief and you have not to mention these Southeast
Asian countries who have higher rates as well, you know,
questions about transhipment, etc. These are a lot of issues
(03:14):
to untangle, and so it's unclear where this is going
to end up as a result of this.
Speaker 8 (03:19):
Meeting, Bloomberg.
Speaker 3 (03:20):
Jordan Fabian says the meeting included representatives from Walmart, Home
Deepot Lows, and Target, and.
Speaker 2 (03:25):
The tariffs are already starting to hit some firms in
Japan Karen. A survey of more than five hundred companies
by Japan's Ministry of Finance shows about ten percent of
them say the measures have affected their businesses. The CEO
of Japanese beverage giant Sentory Holding, says tariffs could make
companies reluctant to invest in the US.
Speaker 9 (03:41):
Current tariff situation is losing the appetite from other countries
to the United States. So this is really killing the
opetite from the world to the United States. So we
are losing the opetite to invest in the United States.
Speaker 2 (04:00):
Sentaory Holding CEO Takashee Nanami Warren's US tariffs could reduce
Japan's GDP by as much as one point two percent.
Speaker 10 (04:08):
Well Nathan.
Speaker 3 (04:08):
One of the hardest hit stocks during the recent market
selloff has been Tesla. In this afternoon, the ev giant
will report its first quarter earnings, so we can a
preview with Bloomberg's Tom Busby.
Speaker 8 (04:19):
It's been a tough start to the new year for Tesla.
Shares have lost about forty five percent of their value
so far in twenty twenty five, and it posted weaker
than forecast Q one sales earlier this month. The reasons
an aging lineup, few details about more affordable evs to come,
and a lot of backlash against CEO Elon Musk for
ties to President Trump's cost cutting DOGE task Force, and
(04:40):
support for far right politicians in Germany. Consensus calls for
a justin ernigs per share of forty four cents total
revenue of twenty one point four to three billion.
Speaker 2 (04:48):
Tom Busby, Bloomberg Radio, All right, Tom, thank you, and
other news. This morning, President Trump is standing behind Defense
Secretary Pete Hegseth as he faces a new report that
he shared Yemen attack plans on a second unsecured signal
chat that included his wife and brother. The President was
asked if he still has confidence in Hegseth at the
White House Easter egg Roll.
Speaker 10 (05:08):
Why do you even ask a question, Dad?
Speaker 11 (05:10):
We have regroupments that said a all time high, the
spirit and the amed courses is fantastic.
Speaker 12 (05:16):
No great confidence.
Speaker 2 (05:17):
The president spoke after a former Pentagon spokesman, John Elliott
said the Defense departments and a full blown meltdown in
his works it could cost hag Seth his job. That
criticism came after three top Defense Department officials said they
were fired in the middle of a leak investigation but
weren't told what they were being investigated for. President Trump
is blaming disgrunted employees for the pressure on heg Seth
(05:39):
says he's doing a great job, but Republican Congressman Don Bacon,
who sits on the House Armed Services Committee, says if
the reports about heg Seth are true, he won't tolerate
it well.
Speaker 3 (05:48):
Nathan Harvard University's high stakes showdown with the Trump administration
has ratcheted up another notch, and Bloomberg's John Tucker joins
us with Mora and John. It looks like this battles
headed to court.
Speaker 13 (06:00):
Karen Harvard is suing several US agencies as well as
top officials, for freezing billions of dollars in federal funding,
much of it critical medical research funding. Lawyers for the
university argued in a lawsuit filged yesterday in federal court
that the government unlawfully suspended Harvard's funding after it refused
to comply with unconstitutional demands to overhaul governance, discipline, hiring,
(06:23):
and diversity programs. O' donald Trump escalated his fight with
Harvard after the school refused to bound to his administration's demands.
Since threatening its funding, Trump suggested the IRS should also
tax the university as a political entity. Without the funding,
this toolsked in the complaint, it will be forced to
either reduce or halt ongoing research projects and terminate employment
(06:46):
contracts with researchersw York. I'm John Tucker, Bloomberg Radio.
Speaker 3 (06:53):
It is time now for 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.
Speaker 12 (07:01):
Morning, Karen. Cardinals a meeting at the Vatican to make
the first decisions about running the Catholic Church following Monday's
death of Pope Francis. They need to decide when the
conclave will begin to elect his successor. Today's Congregation of
Cardinals could choose to begin the public viewing as soon
as Wednesday. The funeral is Saturday. Tributes continue to pour
(07:22):
in for Francis.
Speaker 11 (07:23):
President Trump he was a good man, worked hard, he
loved the world, and it's an honor to do that.
Speaker 12 (07:32):
Former Speaker of the House Nancy Belosi called the Pope's
passing personally devastating.
Speaker 14 (07:37):
All of us who are singing the praises of his
ownness will pray to him and also also follow his legacy.
Speaker 12 (07:48):
Chicago Cardinal Blaze Competch.
Speaker 14 (07:50):
Even though it was clear that he was not feeling well,
he wanted to be with people, and I think that
he had the attention of making sure that people realize
that he was with them.
Speaker 12 (08:04):
The Vatican says the pope died from a cerebral stroke,
which caused him to fall into a coma and then
essentially heart failure. The Trump administration says starting May fifth,
federal student loans in default will be referred to debt collection.
Aisa Conchola Banyez is the policy director for the Student
Borrower Protection Center. She says there are about five million
(08:27):
Americans who are currently in default.
Speaker 5 (08:30):
Folks who are behind are already seeing major hits to
their credit score and seeing these negative marks on their
credit reports.
Speaker 12 (08:37):
After a thirty day notice. The Department of Education will
also begin garnishing wages for borrowers in default. Finally, the
Trump administration is threatening to stop federal approvals for transportation
products in Manhattan and May, with holding funding if New
York City's congestion pricing program continues. The US Transportation Secretary
(08:59):
has given in the Metropolitan Transportation Authority and ultimatum to
end the congestion pricing by May twenty first or face
the consequences. New York Governor Kathy Hokol and the MTA
are refusing to back down, with the MTA seeking a
court decision to declare the administration's move to end the
fee as null and void. Global News twenty four hours
(09:20):
a day and whenever you want it with Bloomberg News Now.
I'm Michael barn This is Bloomberg Karen.
Speaker 3 (09:25):
Right, Michael Barrn, Thank you time now for the Bloomberry
Spores update. Here's John stash Hour. John, Good morning in Nornie, Karen.
Speaker 15 (09:35):
The Knicks We're able to come from behind in the
fourth quarter and win Game one from Detroit at the Garden.
Forty eight hours later, they almost did it again, trailed
by thirteen, but was just over a minute ago.
Speaker 12 (09:47):
It was only two.
Speaker 16 (09:48):
What Rutson handles it. It's a two point game, Brookson
one on one with Schroder, Brunton Tribe fish Horts open time,
the last New York League sixteens fifteen to the.
Speaker 12 (10:01):
First, Shrewder Shupper come home.
Speaker 10 (10:07):
It's a three.
Speaker 15 (10:09):
Ice water in his fame non tnt so. Detroit went
back ahead. Mcal Bridges later had a wide open look
at a game tyme three pointer he missed, and Detroit
won its first playoff games since two thousand and eight,
one hundreds of ninety four, Cade Cunningham thirty three points,
Jalen Bruns Levenecks with thirty seven. Game three is Thursday
in Detroit. Clippers won in Denver one O five one
(10:32):
oh two. Who Islanders scored thirty nine. That series also
tied at one, while the road teams won. In the NBA,
the home teams went four to ozho on the ice.
Two games went overtime. Dallas beat Colorado four to three,
and Washington beat Montreal three to two on an Alex
Ovechkin game winner. Winnipeg top Saint Louis two to one,
and a wild one in LA the Kings led Edmonton
(10:52):
for nothing five three was just over two minutes left.
The Oilers tied it up and then La scored with
forty eight seconds to go to win six to five
for the Messa City Field, where they're now ten and
one more great Pitchinal of the Phillies scored four times
on the ninth dinning, the Mets held on it went
five to four. Francisco Lindoor a lead off home run
later a three run shot home runs did in the Yankees.
(11:12):
In Cleveland, Jose Ramirez went back to back with Kyle
Manzarto third in off. Clerk Smith Guardians beat the Yanks
six to four. John Stashammer, Bloomberg Sports Kunda, Nathan.
Speaker 1 (11:23):
Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 2 (11:34):
Good morning, I'm Nathan Hager. Markets maybe due four bounce
back from the steep declines to start the week, but
the pressure remains on FED Chair Jerome Powell since President
Trump had this to say in the Oval office last week.
Speaker 11 (11:46):
I don't think he's doing the job he's too late,
always too late, blue slow, and I'm not happy with him.
I let him know it, and if I want him out,
he'll be out of their real fast believe me.
Speaker 2 (11:59):
Man the president and follow that up this week with
a social media post saying there could be a slowing
of the economy if Powell doesn't cut interest rates now.
So let's get more and what's happening in this market.
We are joined by Daniel Morris, Chief Market Strategistic BNP
Paribough Asset Management. Daniel, it's great to speak with you.
How seriously should the market take this pressure on Chairman
Powell as the President Trump continues pressure around trade? Good morning,
(12:24):
Good morning.
Speaker 10 (12:25):
Well, certainly it's a quite serious topic, something that most
investors would probably be happier with the status quo than
the change of that magnitude. So I think it's something
absolutely have to pay attention to anticipate what the consequences
might be. And I think if you look at what's
been happening with the dollar in general over the last
couple of weeks, you know this could be another factor.
(12:45):
If it escalates, that would potentially weaken the dollar.
Speaker 2 (12:48):
Well, what could the confidence or the consequences be Daniel,
if we did see a serious threat to federal reserve independence.
Speaker 10 (12:56):
Well, I think what ultimately, in an abstract version of it,
the reason the argument that you want to have independent
central banks is that you don't want the central governas
to the central goverment, the federal government of any country,
using monetary policy to promote their own normally a growth agenda,
because a concern is going to be over the medium term,
you're going to end up with higher inflation. So it
(13:17):
really does come down to that anchoring of inflation expectations
which is so important to central bankers, and that would
be I think the primary risk that investors would see.
Would investor would inflation expectations become unanchored if you had
a central bank that was fewed as less independent.
Speaker 2 (13:35):
Well, how would the market take it if the Federal
Reserve were to cut interest rates?
Speaker 10 (13:42):
Well, it's not necessarily a clear cut whether they should
or they shouldn't. When you're in arguably or approaching a
stagflationary environment, meaning that in the short term at least
prices are going to go up. So by the definition
of a change in prices, it's inflationary, even if it's
not inflationary really in the sense gentral Banks think about
insofar it's not necessarily to be a permanent increase in
(14:04):
the rate of price changes, but an increase in prices
that's likely to lead to a slow down of growth,
at least in the short term. And then given that
the FED has a dual mandate essentially focusing on growth
the unemployment rate, but also inflation, you can argue both
ways they should potentially be cutting rates to offset the
negative impact on growth or raising rates to offset the
(14:27):
impact on inflation. But if the inflation iffact is temporary,
you would probably fall back to growth, So them cutting
in this environment isn't necessarily an outlandish idea. We're seeing
that happening in the Eurostone the US to be discut
rates exactly for that reason.
Speaker 2 (14:42):
And we've seen some pretty dramatic estimates of the economic
impact if President Trump's tariffs were to remain in place
beyond the ninety day pause, ninety percent risk of recession
from a Torston Slocket, Apollo Global and Bloomberg Economics estimating
trillion dollars in global GDP could be shaved off by
(15:03):
the end of twenty twenty seven. Do those estimates make sense.
Speaker 10 (15:08):
Well, I think we should perhaps recall how bad our
forecasting was during the pandemic, and so it's not to
criticize economic forecasting, but at the best of times, it's
not particularly accurate. And when you're in an environment that
is unprecedented, like it was during lockdowns, your models really
aren't of much use at all. So I think we
certainly can attempt to forecast what would happen with GDP
(15:31):
growth in the event and terrorists came back and stayed
in place, But I think we'd have to acknowledge that
there's going to be a huge confidence interval around those estimates,
simply because there's really been no preceding episode like this
to tell us, Okay, that's happened, then this because is
going to happen this time.
Speaker 3 (15:47):
This is Bloombergy Daybreak, your morning podcast on the stories
making news from Wall Street to Washington and beyond.
Speaker 2 (15:54):
Look for us on your podcast feed by six am
Eastern each morning on Apple, Spotify or anywhere else.
Speaker 3 (15:59):
Let's You can also listen live each morning starting at
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on serious XM Channel one twenty one.
Speaker 2 (16:15):
Plus listen coast to coast on the Bloomberg Business app
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Speaker 3 (16:20):
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.
Speaker 2 (16:33):
And I'm Nathan Hager. Join us again tomorrow morning for
all the news you need to start your day right
here on Bloomberg Day Ray
Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2 (00:10):
Good morning.
Speaker 3 (00:10):
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today, Karen.
Speaker 2 (00:15):
The bounce back in the markets this morning follows another
selloff on Wall Street on Monday. All three major indexes
fell at least two point four percent. President Trump's demands
on FED Chair J Powell to act on rates are
renewing concern about the President meddling with central bank policy.
Claudia Sam, a former Federal Reserve economist, says it is
a real concern.
Speaker 4 (00:37):
I take it very seriously, and I, you know, this
administration has taken steps, whether it's with the tariffs or
with downsize in the government, that really were, you know,
beyond expectations. So I, you know, the unthinkable is thinkable
with this administration.
Speaker 2 (00:51):
Claudia Sam is currently chief economist at New Century Advisors,
and concerns about Fed independents also have Gold on the
rise again this morning. Earlier top thirty twenty five hundred
dollars an ounce for the first time. Right now it's
at thirty four to sixty seventy cents.
Speaker 3 (01:06):
Well, Nathan, the S and P five hundred is down
by nine percent since Trump unveiled sweeping tariffs earlier this
month on most US trading partners. The chief economist of
Apollo Global Management, Touristen Slock, says a recession is the
most likely scenario if the current tariffs take place.
Speaker 5 (01:23):
Maybe we'll take a few more weeks, maybe the worst
case a few a month or two, but we will
eventually begin to see the net effect if these tariffs
stay in place. And that's why we think there's a
ninety percent chance of a recession if these tariffs stay
at these current levels.
Speaker 3 (01:37):
And Apollo Global Management's tourst end slocks as foreigners own
nineteen trillion dollars of US equities, seven trillion of treasuries,
and five trillion dollars of US corporate bonds, accounting for
about twenty to thirty percent of the total market. He
says the unwinding of those holdings could cause substantial pain.
Speaker 2 (01:55):
And Karen Bloomberg Economics estimates President Trump's tariffs would shave
about two trillion dollars off global output by the end
of twenty twenty seven. Get that part of the story
from bloomberg 'zamy Morris in Washington.
Speaker 6 (02:07):
Analysts find that the president so called Liberation Day tariffs
will mean a historic shock to the world GDP Bloomberg
Economics analysts find that for the US, Trump's tariffs act
like a massive tax hike and is considered a major shock.
They say one casualty could be FED independents. Whether President
Trump attempts to fire FED chair J. Powell or waits
(02:28):
until the end of his term, it now does look
likely that the next FED chief will be picked, at
least in part, based on alignment with Trump's policy preferences.
In Washington, Amy Morris, Bloomberg Radio.
Speaker 3 (02:39):
All right, Amy, thank you. President Trump met with major
retailers at the White House as executive sod really from
tariffs that have destabilized global supply chains and rattled US consumers.
Jordan Fabian Is Bloomberg News White House Editor.
Speaker 7 (02:53):
That china one hundred and forty five percent tariff looms
large over this conversation and used to do work across
purposes when you have these companies coming in asking for
a relief and you have not to mention these Southeast
Asian countries who have higher rates as well, you know,
questions about transhipment, etc. These are a lot of issues
(03:14):
to untangle, and so it's unclear where this is going
to end up as a result of this.
Speaker 8 (03:19):
Meeting, Bloomberg.
Speaker 3 (03:20):
Jordan Fabian says the meeting included representatives from Walmart, Home
Deepot Lows, and Target, and.
Speaker 2 (03:25):
The tariffs are already starting to hit some firms in
Japan Karen. A survey of more than five hundred companies
by Japan's Ministry of Finance shows about ten percent of
them say the measures have affected their businesses. The CEO
of Japanese beverage giant Sentory Holding, says tariffs could make
companies reluctant to invest in the US.
Speaker 9 (03:41):
Current tariff situation is losing the appetite from other countries
to the United States. So this is really killing the
opetite from the world to the United States. So we
are losing the opetite to invest in the United States.
Speaker 2 (04:00):
Sentaory Holding CEO Takashee Nanami Warren's US tariffs could reduce
Japan's GDP by as much as one point two percent.
Speaker 10 (04:08):
Well Nathan.
Speaker 3 (04:08):
One of the hardest hit stocks during the recent market
selloff has been Tesla. In this afternoon, the ev giant
will report its first quarter earnings, so we can a
preview with Bloomberg's Tom Busby.
Speaker 8 (04:19):
It's been a tough start to the new year for Tesla.
Shares have lost about forty five percent of their value
so far in twenty twenty five, and it posted weaker
than forecast Q one sales earlier this month. The reasons
an aging lineup, few details about more affordable evs to come,
and a lot of backlash against CEO Elon Musk for
ties to President Trump's cost cutting DOGE task Force, and
(04:40):
support for far right politicians in Germany. Consensus calls for
a justin ernigs per share of forty four cents total
revenue of twenty one point four to three billion.
Speaker 2 (04:48):
Tom Busby, Bloomberg Radio, All right, Tom, thank you, and
other news. This morning, President Trump is standing behind Defense
Secretary Pete Hegseth as he faces a new report that
he shared Yemen attack plans on a second unsecured signal
chat that included his wife and brother. The President was
asked if he still has confidence in Hegseth at the
White House Easter egg Roll.
Speaker 10 (05:08):
Why do you even ask a question, Dad?
Speaker 11 (05:10):
We have regroupments that said a all time high, the
spirit and the amed courses is fantastic.
Speaker 12 (05:16):
No great confidence.
Speaker 2 (05:17):
The president spoke after a former Pentagon spokesman, John Elliott
said the Defense departments and a full blown meltdown in
his works it could cost hag Seth his job. That
criticism came after three top Defense Department officials said they
were fired in the middle of a leak investigation but
weren't told what they were being investigated for. President Trump
is blaming disgrunted employees for the pressure on heg Seth
(05:39):
says he's doing a great job, but Republican Congressman Don Bacon,
who sits on the House Armed Services Committee, says if
the reports about heg Seth are true, he won't tolerate
it well.
Speaker 3 (05:48):
Nathan Harvard University's high stakes showdown with the Trump administration
has ratcheted up another notch, and Bloomberg's John Tucker joins
us with Mora and John. It looks like this battles
headed to court.
Speaker 13 (06:00):
Karen Harvard is suing several US agencies as well as
top officials, for freezing billions of dollars in federal funding,
much of it critical medical research funding. Lawyers for the
university argued in a lawsuit filged yesterday in federal court
that the government unlawfully suspended Harvard's funding after it refused
to comply with unconstitutional demands to overhaul governance, discipline, hiring,
(06:23):
and diversity programs. O' donald Trump escalated his fight with
Harvard after the school refused to bound to his administration's demands.
Since threatening its funding, Trump suggested the IRS should also
tax the university as a political entity. Without the funding,
this toolsked in the complaint, it will be forced to
either reduce or halt ongoing research projects and terminate employment
(06:46):
contracts with researchersw York. I'm John Tucker, Bloomberg Radio.
Speaker 3 (06:53):
It is time now for 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.
Speaker 12 (07:01):
Morning, Karen. Cardinals a meeting at the Vatican to make
the first decisions about running the Catholic Church following Monday's
death of Pope Francis. They need to decide when the
conclave will begin to elect his successor. Today's Congregation of
Cardinals could choose to begin the public viewing as soon
as Wednesday. The funeral is Saturday. Tributes continue to pour
(07:22):
in for Francis.
Speaker 11 (07:23):
President Trump he was a good man, worked hard, he
loved the world, and it's an honor to do that.
Speaker 12 (07:32):
Former Speaker of the House Nancy Belosi called the Pope's
passing personally devastating.
Speaker 14 (07:37):
All of us who are singing the praises of his
ownness will pray to him and also also follow his legacy.
Speaker 12 (07:48):
Chicago Cardinal Blaze Competch.
Speaker 14 (07:50):
Even though it was clear that he was not feeling well,
he wanted to be with people, and I think that
he had the attention of making sure that people realize
that he was with them.
Speaker 12 (08:04):
The Vatican says the pope died from a cerebral stroke,
which caused him to fall into a coma and then
essentially heart failure. The Trump administration says starting May fifth,
federal student loans in default will be referred to debt collection.
Aisa Conchola Banyez is the policy director for the Student
Borrower Protection Center. She says there are about five million
(08:27):
Americans who are currently in default.
Speaker 5 (08:30):
Folks who are behind are already seeing major hits to
their credit score and seeing these negative marks on their
credit reports.
Speaker 12 (08:37):
After a thirty day notice. The Department of Education will
also begin garnishing wages for borrowers in default. Finally, the
Trump administration is threatening to stop federal approvals for transportation
products in Manhattan and May, with holding funding if New
York City's congestion pricing program continues. The US Transportation Secretary
(08:59):
has given in the Metropolitan Transportation Authority and ultimatum to
end the congestion pricing by May twenty first or face
the consequences. New York Governor Kathy Hokol and the MTA
are refusing to back down, with the MTA seeking a
court decision to declare the administration's move to end the
fee as null and void. Global News twenty four hours
(09:20):
a day and whenever you want it with Bloomberg News Now.
I'm Michael barn This is Bloomberg Karen.
Speaker 3 (09:25):
Right, Michael Barrn, Thank you time now for the Bloomberry
Spores update. Here's John stash Hour. John, Good morning in Nornie, Karen.
Speaker 15 (09:35):
The Knicks We're able to come from behind in the
fourth quarter and win Game one from Detroit at the Garden.
Forty eight hours later, they almost did it again, trailed
by thirteen, but was just over a minute ago.
Speaker 12 (09:47):
It was only two.
Speaker 16 (09:48):
What Rutson handles it. It's a two point game, Brookson
one on one with Schroder, Brunton Tribe fish Horts open time,
the last New York League sixteens fifteen to the.
Speaker 12 (10:01):
First, Shrewder Shupper come home.
Speaker 10 (10:07):
It's a three.
Speaker 15 (10:09):
Ice water in his fame non tnt so. Detroit went
back ahead. Mcal Bridges later had a wide open look
at a game tyme three pointer he missed, and Detroit
won its first playoff games since two thousand and eight,
one hundreds of ninety four, Cade Cunningham thirty three points,
Jalen Bruns Levenecks with thirty seven. Game three is Thursday
in Detroit. Clippers won in Denver one O five one
(10:32):
oh two. Who Islanders scored thirty nine. That series also
tied at one, while the road teams won. In the NBA,
the home teams went four to ozho on the ice.
Two games went overtime. Dallas beat Colorado four to three,
and Washington beat Montreal three to two on an Alex
Ovechkin game winner. Winnipeg top Saint Louis two to one,
and a wild one in LA the Kings led Edmonton
(10:52):
for nothing five three was just over two minutes left.
The Oilers tied it up and then La scored with
forty eight seconds to go to win six to five
for the Messa City Field, where they're now ten and
one more great Pitchinal of the Phillies scored four times
on the ninth dinning, the Mets held on it went
five to four. Francisco Lindoor a lead off home run
later a three run shot home runs did in the Yankees.
(11:12):
In Cleveland, Jose Ramirez went back to back with Kyle
Manzarto third in off. Clerk Smith Guardians beat the Yanks
six to four. John Stashammer, Bloomberg Sports Kunda, Nathan.
Speaker 1 (11:23):
Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 2 (11:34):
Good morning, I'm Nathan Hager. Markets maybe due four bounce
back from the steep declines to start the week, but
the pressure remains on FED Chair Jerome Powell since President
Trump had this to say in the Oval office last week.
Speaker 11 (11:46):
I don't think he's doing the job he's too late,
always too late, blue slow, and I'm not happy with him.
I let him know it, and if I want him out,
he'll be out of their real fast believe me.
Speaker 2 (11:59):
Man the president and follow that up this week with
a social media post saying there could be a slowing
of the economy if Powell doesn't cut interest rates now.
So let's get more and what's happening in this market.
We are joined by Daniel Morris, Chief Market Strategistic BNP
Paribough Asset Management. Daniel, it's great to speak with you.
How seriously should the market take this pressure on Chairman
Powell as the President Trump continues pressure around trade? Good morning,
(12:24):
Good morning.
Speaker 10 (12:25):
Well, certainly it's a quite serious topic, something that most
investors would probably be happier with the status quo than
the change of that magnitude. So I think it's something
absolutely have to pay attention to anticipate what the consequences
might be. And I think if you look at what's
been happening with the dollar in general over the last
couple of weeks, you know this could be another factor.
(12:45):
If it escalates, that would potentially weaken the dollar.
Speaker 2 (12:48):
Well, what could the confidence or the consequences be Daniel,
if we did see a serious threat to federal reserve independence.
Speaker 10 (12:56):
Well, I think what ultimately, in an abstract version of it,
the reason the argument that you want to have independent
central banks is that you don't want the central governas
to the central goverment, the federal government of any country,
using monetary policy to promote their own normally a growth agenda,
because a concern is going to be over the medium term,
you're going to end up with higher inflation. So it
(13:17):
really does come down to that anchoring of inflation expectations
which is so important to central bankers, and that would
be I think the primary risk that investors would see.
Would investor would inflation expectations become unanchored if you had
a central bank that was fewed as less independent.
Speaker 2 (13:35):
Well, how would the market take it if the Federal
Reserve were to cut interest rates?
Speaker 10 (13:42):
Well, it's not necessarily a clear cut whether they should
or they shouldn't. When you're in arguably or approaching a
stagflationary environment, meaning that in the short term at least
prices are going to go up. So by the definition
of a change in prices, it's inflationary, even if it's
not inflationary really in the sense gentral Banks think about
insofar it's not necessarily to be a permanent increase in
(14:04):
the rate of price changes, but an increase in prices
that's likely to lead to a slow down of growth,
at least in the short term. And then given that
the FED has a dual mandate essentially focusing on growth
the unemployment rate, but also inflation, you can argue both
ways they should potentially be cutting rates to offset the
negative impact on growth or raising rates to offset the
(14:27):
impact on inflation. But if the inflation iffact is temporary,
you would probably fall back to growth, So them cutting
in this environment isn't necessarily an outlandish idea. We're seeing
that happening in the Eurostone the US to be discut
rates exactly for that reason.
Speaker 2 (14:42):
And we've seen some pretty dramatic estimates of the economic
impact if President Trump's tariffs were to remain in place
beyond the ninety day pause, ninety percent risk of recession
from a Torston Slocket, Apollo Global and Bloomberg Economics estimating
trillion dollars in global GDP could be shaved off by
(15:03):
the end of twenty twenty seven. Do those estimates make sense.
Speaker 10 (15:08):
Well, I think we should perhaps recall how bad our
forecasting was during the pandemic, and so it's not to
criticize economic forecasting, but at the best of times, it's
not particularly accurate. And when you're in an environment that
is unprecedented, like it was during lockdowns, your models really
aren't of much use at all. So I think we
certainly can attempt to forecast what would happen with GDP
(15:31):
growth in the event and terrorists came back and stayed
in place, But I think we'd have to acknowledge that
there's going to be a huge confidence interval around those estimates,
simply because there's really been no preceding episode like this
to tell us, Okay, that's happened, then this because is
going to happen this time.
Speaker 3 (15:47):
This is Bloombergy Daybreak, your morning podcast on the stories
making news from Wall Street to Washington and beyond.
Speaker 2 (15:54):
Look for us on your podcast feed by six am
Eastern each morning on Apple, Spotify or anywhere else.
Speaker 3 (15:59):
Let's You can also listen live each morning starting at
five am Wall Street time on Bloomberg eleven three to
zero in New York. Bloomberg in ninety nine to one
in Washington, Bloomberg ninety two nine in Boston, and nationwide
on serious XM Channel one twenty one.
Speaker 2 (16:15):
Plus listen coast to coast on the Bloomberg Business app
now with Apple CarPlay and Android Atto interfaces.
Speaker 3 (16:20):
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.
Speaker 2 (16:33):
And I'm Nathan Hager. Join us again tomorrow morning for
all the news you need to start your day right
here on Bloomberg Day Ray
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