April 15, 2025 • 20 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) “The president has been very clear that he’s willing to talk to his counterpart,” US Trade Representative Jamieson Greer tells Fox News about Donald Trump and Chinese leader Xi Jinping.
(2) President Donald Trump’s administration pressed forward with plans to impose tariffs on semiconductor and pharmaceutical imports by initiating trade probes led by the Commerce Department.
(3) Treasury Secretary Scott Bessent played down the recent selloff in the bond market, rejecting speculation that foreign nations were dumping their holdings of US Treasuries, while flagging that his department has tools to address dislocation if needed.
(4) European Commissioner for Trade and Economic Security Maros Sefcovic met with US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer today in DC, “seizing the 90-day window for a mutual solution to unjustified tariffs,” he says in a post on X.
(5) UK households increased their spending in March as consumer demand defied an imminent rise in household bills, according to reports from the British Retail Consortium and Barclays.
(6) The Trump administration followed through on its threat to pull federal funding from Harvard University hours after the oldest and richest US college refused to agree to a list of government demands.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the Blue Big dbaqu podcast, available every morning
on Apple, Spotify or wherever you listen. It's Tuesday, the
fifteenth of April here in London. I'm Caroline Hipki and.
Speaker 1 (00:18):
I'm Stephen Carroll. Coming up today. Donald Trump targets the
chips and pharmaceutical industries with new investigations as a likely
precursor to more tariffs.
Speaker 2 (00:27):
A billionaire toy maker says Trump is probably going to
steal Christmas as China tariffs have paralyzed his business.
Speaker 1 (00:34):
Plus frozen out Harvard advised to resist Trump, and a
nine billion dollar funding fight over academic freedoms.
Speaker 2 (00:41):
Let's start with the roundup of our top stories.
Speaker 1 (00:43):
Donald Trump's administration is signaling that more tariffs on semiconductor
and pharmaceutical imports are likely to be coming soon. The
White House has initiated trade probes into chip and drug imports,
in a move that sets the stage for sector specific charges.
Man deep Saying of bloom Or Intelligence says it's an
approach that could be widened.
Speaker 3 (01:03):
It looks like with semi's and you know, consumer electronics.
There will be more to come in terms of tariffs,
but the goal is pretty clear. They want more reshoring,
and I feel those sectoral tariffs are probably more effective
in that because with reciprocal tariffs, you could move from
country to country depending on wherever the reciprocal tariffs were loaf.
(01:25):
So from that perspective, sectoral tariffs could be a could
end up being more effective.
Speaker 1 (01:30):
Man Deep saying, speaking there as President Trump says he
is exploring possible temporary exemptions to his tariffs on imported
vehicles and parts to give car companies more time to
set up manufacturing in the United States well.
Speaker 2 (01:44):
A near daily flow of tariff announcements is adding to
the confusion for companies and countries trying to navigate President
Trump's evolving trade policy. The highest so called reciprocal tariffs
are currently on pools for ninety days, with levees on
popular electronics also temporarily halted as nations race to negotiate
(02:05):
bilateral deals. Speaking to Bloomberg's Ann Marie Hauderen, the US
Trade Secretary Scott Bessend was asked how many of those
deals he expects to have signed by the end of
the pause.
Speaker 4 (02:18):
I think there will be advantage to our allies, especially
in a first mover advantage. You usually the first person
that makes the deal gets the best deal. So if
you think we'll be first, it's their choice.
Speaker 5 (02:32):
Is there a handful of countries that you expect to
have a deal before the ninety days is up.
Speaker 4 (02:37):
Oh, I think there could be numerous countries, and it
may not be the actual trade document, but we will
have an agreement in principle and be able to move
forward from there.
Speaker 2 (02:51):
US Treasury Secretary Scott Besend then his view that this
is all part of an orderly negotiation process is not
shared by his predecessor in the Biden administration format. US
Treasury Secretary Janet Yellen says, the entire process is modeled.
Speaker 6 (03:09):
The objectives unclear, The rationale for the tariffs that have
been announced really unclear and not at all sensible. Steps
toward are removing the tariffs, lowering them are positive, but
we're in a world of tremendous uncertainty.
Speaker 2 (03:32):
Janet Yellen speaking there comes after the CEO of DHL
told Bloomberg on Monday that both businesses and consumers may
now quote adopt a wait and see approach before making
spending decisions.
Speaker 1 (03:45):
Will the White House adds carve outes for certain sectors.
Others dependent on China have been warning of the effect
on consumer prices. Plinburgs EU and Pots has more.
Speaker 7 (03:55):
Christmas is nearly here, at least that is if you're
a toy manufacturer sector plans for its busy season. There's
a warning over what President Trump's one hundred and forty
five percent tariffs on Chinese imports will mean for customers.
Toy billionaire Nick Mowbray's told Bloomberg that the tariffs have
paralyzed his company. He says as eighty percent of all
toys are made in China, the firm will need to
(04:16):
almost double retail prices has to manufacturing in the US.
He says, the industry cannot simply replicate the deep ecosystem
and tight supply chains that exist in China. As he
puts it, Donald Trump is probably going to steal Christmas
from families and kids in the United States this year.
In London, I'm youwing Pots, Splinberg Radio Well.
Speaker 2 (04:35):
Returning to our exclusive interview with the US Treasury Secretary,
It's got bess and played down the bond markets sell off,
but added that he has a big toolkit to combat
any crisis. Treasuries saw their biggest weekly slide since two
thousand and one last week, alongside a decline in the
US dollar. Bessett was asked if he thought central banks
(04:55):
and countries were dumping their US assets.
Speaker 4 (05:00):
Have no evidence that it's sovereign. We are still a
global reserve currency, that we have a strong dollar policy.
The dollar can go up and down.
Speaker 2 (05:10):
The US Treasury secretary was speaking as several Wall Street
banks a warning of week foreign demand for US bonds
due to President Trump's policies.
Speaker 1 (05:18):
The European Union's top trade negotiator mete's US counterparts in Washington,
d C. As the bloc tries to secure a deal
on taris. The EU has paused retaliatory measures and the
hope it can secure further carve outs from the White House,
which has reduced its key blanket levee to ten percent
for ninety days. Meanwhile, Bloomberg has learned that Britain has
privately signaled to the EU that it would be open
(05:41):
to following some of its rules on food products. The
discussions come ahead of a key summit where the UK
hopes to be included in EU defense spending.
Speaker 2 (05:51):
UK households have increased their spending in a sign of
resilience despite rising bills. The British Retail Consortium's March retail
sales figures one point one percent high than the previous year.
Separate data from Berkeley suggests that two thirds of consumers
now want to buy goods made in Britain, in a
sign of how the trade war is changing habits.
Speaker 1 (06:13):
And Harvard University has been hit with a two point
two billion dollar funding freeze after defying President Trump's demands.
The move came just hours after the institution but out
of statement saying it wouldn't surrender its independence and capitulate
to requests ending old diversity, equity and inclusion programs. Ginny
she Hinzano, political science professor at Iona State, says, the
(06:36):
prestigious university is well placed to contest the policies.
Speaker 5 (06:40):
If anybody can push back on this, it's going to
be Harvard, of course, the wealthiest, probably the best, one
of the best institutions in America, in the world. And
the reality is is that Harvard is saying we will
comply with all valid laws. Their problem is this push
to curtail how Harvard admits students, what faculty teaches is
(07:04):
a violation of the law.
Speaker 1 (07:08):
Hena State's Genie she Hinseyo speaking there the Trump administration
last month, it was scrutinizing as much as nine billion
dollars in federal grants and contracts to Harvard as part
of its efforts to combat antisemitism on US campuses. Harvard
has previously acknowledged that it would work with the administration
to combat antisemitism on campus, such as tightening disciplinary procedures,
(07:30):
but its president Alan Garber says the latest demands are unacceptable.
Speaker 2 (07:36):
And those are our top stories this morning. Let's get
to the markets. So Wall Street manager Clinch two days
of gains. The S and P five hundred a rose
yesterday by eight tens of one percent, although stop futures
are pointing lower and in the red this morning. European
stocks outperformed yesterday, U stock six hundred, rising two point
seven percent. Again, we're in the red this morning. But
(07:56):
the other big story was the Treasury's rallied for the
first in five days. Yields fell over ten basis points
across the curve, and they're adding to those gains overnight. Meanwhile,
guilt rose alongside gains in European bonds. The dollar again
is weakening though a six straight session and we're down
again this morning. The pound has been one of the
beneficiaries against the dollar, strengthening to the highest since October.
(08:20):
Japanese equities this morning are also outperforming. This possibility of
more tariff relief maybe on the auto manufacturers. That has
helped the nic K two five up one percent and
the topics currently up a one point two percent this morning.
So that's a look at where we are in the markets.
Speaker 1 (08:37):
In a moment, we'll bring you up to date with
the latest tariff headlines, plus dig into Harvard's dispute with
the Trump administration. But another story that caught our eye
this morning. This is the latest analysis of Europe's changing climates.
So last year was the hottest on record for Europe
according to the Copernicus Climate Change Service in the World
Meteorological Organization as well their report finding the extra heat
(08:58):
and the atmosphere and ocean likely souper charge the storms
last year, remember Storm Barus causing huge flooding. The flooding
in Valencia and Spain as well, the worst in more
than a decade from many parts too. But I found
it interesting that there's also in this data a divide
between the trends in Eastern and Western Europe too. Take
for example, sunshine. The Balkans had hundreds more hours of
(09:20):
sunshine than is typical last year, but it was much
cloudier in Western Europe, so France had three hundred and
fifty fewer hours of sunshine than it normally has as well. Now,
the effects of a lot of this is in things
like renewable energy. For example, even if you're looking for
an upside about what is a very depressing story about
the changing climate is renewable energy was able to generation
(09:41):
hit a record because there was more sunshine in parts
of the world that has more solar panels, but also
because wind speeds were less strong, which meant that wind
power was able to generate more because of course, when
the wind speed goes too high, you can't use wind
turbines because it becomes unsafe. So the fact that they
had more moderate or below or average win speeds is
how they describe it in this report as well, meant
(10:02):
that generation from wind turbines was able to help too.
But a warning in here as well about early warning
systems in particular, and that.
Speaker 2 (10:09):
Word so I saw that. I thought that was really interesting,
the fact that in Europe, because the weather is becoming
more extreme, that kind of early warning system, especially for
things like fires and floods, needs to be better. Anyway,
you can read the story on the Blueberg Terminal and
on our website. Joe Wertz been keeping track of the weather,
extreme weather across Europe and what it means for all
the different regions in Europe.
Speaker 1 (10:32):
Well, that's turned back to the trade story, and President
Trump has moved forward on tariffs on imported medicines and semiconductors,
even as the pullback on tech tariffs over the weekend
and the abrupt reduction of country specific tariffs for ninety
days its own confusion and paralysis from any companies. Our
senior editor Bill Ferries joins us now for more on
this story. Let's start with these new investigations then, Bill,
(10:54):
what exactly is the Trump administration looking at for semiconductors
and pharmaceuticals?
Speaker 8 (11:01):
Yeah, thanks for having me. So, President Trump has ordered
the Commerce Department to undertake one of these what they
call Section two thirty two investigations. It kind of has
a national security implication, looking specifically at semiconductor chips, the
chip manufacturing machines, and hardware, as well as pharmaceuticals, and
(11:22):
that basically gives the Commerce Department two hundred and seventy
days to come up with a report for the President's desk.
Of course, we're only eighty plus days into his administration.
I don't think it's going to take two hundred and
seventy days to get this, but the end result is
likely to be some sort of recommendation on new sector
(11:42):
specific tariffs in those areas.
Speaker 2 (11:45):
Meanwhile, President Trump also suggesting that there may be another
U turn, this time on imported vehicles and car parts.
So what do we know about that?
Speaker 4 (11:54):
Right?
Speaker 8 (11:54):
So, President Trump floating the idea that this twenty five
percent tariff on imported vehicles could be eased or suspended,
we don't have He didn't really go into detail on that,
but it is another sign that the administration is perhaps
stepping back from its initial vow, I guess or commitment
to these twenty five percent tariffs. We know he wants
(12:17):
to see more manufacturing back in the US, but of
course it takes a whole lot of time to build
up that infrastructure in those factories and even a lot
of the parts for the production that would be required
have to come from overseas, so we don't have any details.
We don't know what the timeline is, but he is
floating the idea and it's benefited I think auto stocks
(12:39):
in some parts of the world.
Speaker 3 (12:40):
Today.
Speaker 1 (12:41):
We've also on the negotiation front, particularly thinking about the
tariffs for China, the Trade Representative Jameson Greer floating the
idea of discussions that could happen at the highest level.
Speaker 8 (12:52):
Yeah, Jamison Greer the USTR saying that he thinks that
there is interest in talks. The big question here is
it's almost the who blinks first here. I think the
Trump administration has signaled repeatedly that they would like Shi
Jinping and his aides to place a call to them.
I think on the other side, the Chinese have said
(13:12):
that they're willing to put up with this trade war
and even escalated at times if they need to, so
that it's unlikely that they're going to make that call.
They did praise some of the pullback and tariffs over
the weekend, but I think at this point they're willing
to wait and perhaps even absorb some pain before agreeing
(13:32):
to doks.
Speaker 2 (13:34):
Well, all of these tariffs do seem now quite tangled,
and they seem to be leading to confusion. How much
of this, though, do you think might be about consumer prices?
How much is the Trump White House paying attention to
US consumers?
Speaker 8 (13:48):
Well, you know, I think the auto teriff is an
interesting example. You had a lot of estimates out saying
that auto prices could go from even for just very
modest vehicles twenty five hundred to four thousand dollars in
aditional costs. That's a huge that's a huge burden on
households in the US. So I think they're looking at that.
We know when you had some of that bond fallout
(14:10):
and Tuesday last week, I think we know the President
said that that factored into his thinking about pulling back
on the reciprocal tariffs. So I think the market impacts
and the potential inflation impacts, those things show that the
president perhaps has a pain point.
Speaker 1 (14:27):
Okay, both varies. Our senior editor, thank you very much
for joining us with the latest on the many and
varied aspects of this tariff story.
Speaker 2 (14:34):
Now, the Trump administration has frozen two point two billion
dollars in multi year grants to Harvard University, the oldest
and richest US university after it refused to agree to
a list of government demands. It comes also as federal
funds and grants have been frozen or canceled for several
high profile US universities as part of the Trump administration's
(14:55):
campaign to force changes at elite universities. That's get more
on this and discussed with Bluebigs Tea added by a
Good Morning Tiva. There was a question about whether the
US universities would push back on a Trump administration demands.
What has the White House demanded of Harvard?
Speaker 9 (15:13):
Well, Caroline, it's interesting that we talk about pushback because
what's interesting here is that Harvard was previously willing to
work with the Trump administration that was on combating anti semitism,
which is actually where this all started. The Trump team
said that it initially began scrutinizing as much as nine
billion in its federal grants and contracts to Harvard in
(15:35):
an effort to root out anti semitism on campus. College
campuses have experienced incidents of anti semitism, including Harvard and Columbia,
and in February, the Trump team created a multi agency
task force to stop that. But now, according to Harvard's president,
Alan Garbet, the university is being subjected to numerous demands,
(15:56):
including canceling di programs, change is to admissions and hiring,
curbing the power of certain students and faculty administrators because
of their ideological views. So what Alan Garb is saying
is that this has been an expanded ask and it
proves that the goal of the Trump administration, according to him,
(16:17):
isn't simply about fighting anti Semitism. He thinks it's more
about a power struggle for control, as you mentioned, of
one of the world's most powerful institutions in Harvard.
Speaker 1 (16:29):
So how have Harvard and other institutions chosen to respond
to this from the Trump administration.
Speaker 9 (16:36):
Well, in Harvard's case, they've hit back pretty hard. The
school's president, Alan Garber, posted a statement on the website
and he said the university won't surrender its independence or
constitutional rights. So they're taking this pretty seriously. It looks
like they are planning to take the financial hits at
the moment. Harvard is a definitely better place than some
(16:57):
of its other peers to do that. Their endowment sits
at around fifty three billion dollars. But what's interesting too
is that their statement doesn't just talk about Harvard. It's
definitely not the only US college that has faced demands
from this administration. Actually, Columbia University another prominent example. They
handled it a bit differently. The Trump administration threatened to
(17:20):
freeze four hundred million dollars of their federal funding, and
in response to school actually agreed to do things like
band masks, expand campus police powers, and appoint a senior
member of staff to oversee the Middle East, South Asian
and African Studies department. Harvard has done the opposite here.
They've used this opportunity to make clear that they don't
(17:43):
think itself, or any other private university for that matter,
as its lawyers say in a letter, should allow itself
to be taken over or influenced by the federal government.
So they're taking a defiant stance in response to this.
Speaker 2 (17:57):
It does seem to be quite a deep ideological battle
in the US, and many people see that sort of
having influence or understanding what is going on on university
campuses is quite crucial to the fabric of the US
or really any country well.
Speaker 9 (18:13):
Definitely, and actually looking back at some of the demands,
it's easy to see why some may think this is
about more than just university students. For their parts, the
Trump administration actually say that Harvard's response to their request
convey a troubling entitlement mindset and that federal funding essentially
should come at the price of upholding what they're referring
(18:36):
to as civil rights laws. So in the eyes of
the government, perhaps it is also about more than just
the university. But speaking about the implications of this discussion
for wider society, of course, places like Harvard and Columbia
some of the most important educational institutions in the world,
and they are emblematic of intellectual freedom. Larry Kramer, who
(18:59):
is the vice chancellor of the London School of Economics
but formerly the dean of Stanford Law School in the US,
spoke to US a couple of weeks ago about the situation.
Here's what he thinks will happen and the whyde reaching
effect that could take place.
Speaker 10 (19:13):
US has long haired the largest dominant university system in
the world, and the effective dismantling of that and the
effective effort to really crush some of the best universities
in the world will have just you know, collateral effects
of all sorts that are hard to specify, but you
(19:33):
will be unfolding over the next couple of years.
Speaker 9 (19:36):
So Larry Kramer there from the London School of Economics
saying this is about more than just the control of
elite US universities, but certainly a story that's likely to
develop in the coming weeks.
Speaker 1 (19:48):
This is Bloomberg Daybreak Europe. You're morning brief on the
stories making news from London to Wall Streets and beyond.
Speaker 2 (19:54):
Look for us on your podcast speed every morning, on Apple,
Spotify and anywhere else you get your podcast.
Speaker 1 (20:00):
You can also listen live each morning on London DAB Radio,
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Speaker 2 (20:05):
Our flagship New York station is also available on your
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Speaker 1 (20:13):
I'm Caroline Hepka and I'm Stephen.
Speaker 7 (20:15):
Carol.
Speaker 1 (20:15):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg day
Break Europe.
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:09):
This is the Blue Big dbaqu podcast, available every morning
on Apple, Spotify or wherever you listen. It's Tuesday, the
fifteenth of April here in London. I'm Caroline Hipki and.
Speaker 1 (00:18):
I'm Stephen Carroll. Coming up today. Donald Trump targets the
chips and pharmaceutical industries with new investigations as a likely
precursor to more tariffs.
Speaker 2 (00:27):
A billionaire toy maker says Trump is probably going to
steal Christmas as China tariffs have paralyzed his business.
Speaker 1 (00:34):
Plus frozen out Harvard advised to resist Trump, and a
nine billion dollar funding fight over academic freedoms.
Speaker 2 (00:41):
Let's start with the roundup of our top stories.
Speaker 1 (00:43):
Donald Trump's administration is signaling that more tariffs on semiconductor
and pharmaceutical imports are likely to be coming soon. The
White House has initiated trade probes into chip and drug imports,
in a move that sets the stage for sector specific charges.
Man deep Saying of bloom Or Intelligence says it's an
approach that could be widened.
Speaker 3 (01:03):
It looks like with semi's and you know, consumer electronics.
There will be more to come in terms of tariffs,
but the goal is pretty clear. They want more reshoring,
and I feel those sectoral tariffs are probably more effective
in that because with reciprocal tariffs, you could move from
country to country depending on wherever the reciprocal tariffs were loaf.
(01:25):
So from that perspective, sectoral tariffs could be a could
end up being more effective.
Speaker 1 (01:30):
Man Deep saying, speaking there as President Trump says he
is exploring possible temporary exemptions to his tariffs on imported
vehicles and parts to give car companies more time to
set up manufacturing in the United States well.
Speaker 2 (01:44):
A near daily flow of tariff announcements is adding to
the confusion for companies and countries trying to navigate President
Trump's evolving trade policy. The highest so called reciprocal tariffs
are currently on pools for ninety days, with levees on
popular electronics also temporarily halted as nations race to negotiate
(02:05):
bilateral deals. Speaking to Bloomberg's Ann Marie Hauderen, the US
Trade Secretary Scott Bessend was asked how many of those
deals he expects to have signed by the end of
the pause.
Speaker 4 (02:18):
I think there will be advantage to our allies, especially
in a first mover advantage. You usually the first person
that makes the deal gets the best deal. So if
you think we'll be first, it's their choice.
Speaker 5 (02:32):
Is there a handful of countries that you expect to
have a deal before the ninety days is up.
Speaker 4 (02:37):
Oh, I think there could be numerous countries, and it
may not be the actual trade document, but we will
have an agreement in principle and be able to move
forward from there.
Speaker 2 (02:51):
US Treasury Secretary Scott Besend then his view that this
is all part of an orderly negotiation process is not
shared by his predecessor in the Biden administration format. US
Treasury Secretary Janet Yellen says, the entire process is modeled.
Speaker 6 (03:09):
The objectives unclear, The rationale for the tariffs that have
been announced really unclear and not at all sensible. Steps
toward are removing the tariffs, lowering them are positive, but
we're in a world of tremendous uncertainty.
Speaker 2 (03:32):
Janet Yellen speaking there comes after the CEO of DHL
told Bloomberg on Monday that both businesses and consumers may
now quote adopt a wait and see approach before making
spending decisions.
Speaker 1 (03:45):
Will the White House adds carve outes for certain sectors.
Others dependent on China have been warning of the effect
on consumer prices. Plinburgs EU and Pots has more.
Speaker 7 (03:55):
Christmas is nearly here, at least that is if you're
a toy manufacturer sector plans for its busy season. There's
a warning over what President Trump's one hundred and forty
five percent tariffs on Chinese imports will mean for customers.
Toy billionaire Nick Mowbray's told Bloomberg that the tariffs have
paralyzed his company. He says as eighty percent of all
toys are made in China, the firm will need to
(04:16):
almost double retail prices has to manufacturing in the US.
He says, the industry cannot simply replicate the deep ecosystem
and tight supply chains that exist in China. As he
puts it, Donald Trump is probably going to steal Christmas
from families and kids in the United States this year.
In London, I'm youwing Pots, Splinberg Radio Well.
Speaker 2 (04:35):
Returning to our exclusive interview with the US Treasury Secretary,
It's got bess and played down the bond markets sell off,
but added that he has a big toolkit to combat
any crisis. Treasuries saw their biggest weekly slide since two
thousand and one last week, alongside a decline in the
US dollar. Bessett was asked if he thought central banks
(04:55):
and countries were dumping their US assets.
Speaker 4 (05:00):
Have no evidence that it's sovereign. We are still a
global reserve currency, that we have a strong dollar policy.
The dollar can go up and down.
Speaker 2 (05:10):
The US Treasury secretary was speaking as several Wall Street
banks a warning of week foreign demand for US bonds
due to President Trump's policies.
Speaker 1 (05:18):
The European Union's top trade negotiator mete's US counterparts in Washington,
d C. As the bloc tries to secure a deal
on taris. The EU has paused retaliatory measures and the
hope it can secure further carve outs from the White House,
which has reduced its key blanket levee to ten percent
for ninety days. Meanwhile, Bloomberg has learned that Britain has
privately signaled to the EU that it would be open
(05:41):
to following some of its rules on food products. The
discussions come ahead of a key summit where the UK
hopes to be included in EU defense spending.
Speaker 2 (05:51):
UK households have increased their spending in a sign of
resilience despite rising bills. The British Retail Consortium's March retail
sales figures one point one percent high than the previous year.
Separate data from Berkeley suggests that two thirds of consumers
now want to buy goods made in Britain, in a
sign of how the trade war is changing habits.
Speaker 1 (06:13):
And Harvard University has been hit with a two point
two billion dollar funding freeze after defying President Trump's demands.
The move came just hours after the institution but out
of statement saying it wouldn't surrender its independence and capitulate
to requests ending old diversity, equity and inclusion programs. Ginny
she Hinzano, political science professor at Iona State, says, the
(06:36):
prestigious university is well placed to contest the policies.
Speaker 5 (06:40):
If anybody can push back on this, it's going to
be Harvard, of course, the wealthiest, probably the best, one
of the best institutions in America, in the world. And
the reality is is that Harvard is saying we will
comply with all valid laws. Their problem is this push
to curtail how Harvard admits students, what faculty teaches is
(07:04):
a violation of the law.
Speaker 1 (07:08):
Hena State's Genie she Hinseyo speaking there the Trump administration
last month, it was scrutinizing as much as nine billion
dollars in federal grants and contracts to Harvard as part
of its efforts to combat antisemitism on US campuses. Harvard
has previously acknowledged that it would work with the administration
to combat antisemitism on campus, such as tightening disciplinary procedures,
(07:30):
but its president Alan Garber says the latest demands are unacceptable.
Speaker 2 (07:36):
And those are our top stories this morning. Let's get
to the markets. So Wall Street manager Clinch two days
of gains. The S and P five hundred a rose
yesterday by eight tens of one percent, although stop futures
are pointing lower and in the red this morning. European
stocks outperformed yesterday, U stock six hundred, rising two point
seven percent. Again, we're in the red this morning. But
(07:56):
the other big story was the Treasury's rallied for the
first in five days. Yields fell over ten basis points
across the curve, and they're adding to those gains overnight. Meanwhile,
guilt rose alongside gains in European bonds. The dollar again
is weakening though a six straight session and we're down
again this morning. The pound has been one of the
beneficiaries against the dollar, strengthening to the highest since October.
(08:20):
Japanese equities this morning are also outperforming. This possibility of
more tariff relief maybe on the auto manufacturers. That has
helped the nic K two five up one percent and
the topics currently up a one point two percent this morning.
So that's a look at where we are in the markets.
Speaker 1 (08:37):
In a moment, we'll bring you up to date with
the latest tariff headlines, plus dig into Harvard's dispute with
the Trump administration. But another story that caught our eye
this morning. This is the latest analysis of Europe's changing climates.
So last year was the hottest on record for Europe
according to the Copernicus Climate Change Service in the World
Meteorological Organization as well their report finding the extra heat
(08:58):
and the atmosphere and ocean likely souper charge the storms
last year, remember Storm Barus causing huge flooding. The flooding
in Valencia and Spain as well, the worst in more
than a decade from many parts too. But I found
it interesting that there's also in this data a divide
between the trends in Eastern and Western Europe too. Take
for example, sunshine. The Balkans had hundreds more hours of
(09:20):
sunshine than is typical last year, but it was much
cloudier in Western Europe, so France had three hundred and
fifty fewer hours of sunshine than it normally has as well. Now,
the effects of a lot of this is in things
like renewable energy. For example, even if you're looking for
an upside about what is a very depressing story about
the changing climate is renewable energy was able to generation
(09:41):
hit a record because there was more sunshine in parts
of the world that has more solar panels, but also
because wind speeds were less strong, which meant that wind
power was able to generate more because of course, when
the wind speed goes too high, you can't use wind
turbines because it becomes unsafe. So the fact that they
had more moderate or below or average win speeds is
how they describe it in this report as well, meant
(10:02):
that generation from wind turbines was able to help too.
But a warning in here as well about early warning
systems in particular, and that.
Speaker 2 (10:09):
Word so I saw that. I thought that was really interesting,
the fact that in Europe, because the weather is becoming
more extreme, that kind of early warning system, especially for
things like fires and floods, needs to be better. Anyway,
you can read the story on the Blueberg Terminal and
on our website. Joe Wertz been keeping track of the weather,
extreme weather across Europe and what it means for all
the different regions in Europe.
Speaker 1 (10:32):
Well, that's turned back to the trade story, and President
Trump has moved forward on tariffs on imported medicines and semiconductors,
even as the pullback on tech tariffs over the weekend
and the abrupt reduction of country specific tariffs for ninety
days its own confusion and paralysis from any companies. Our
senior editor Bill Ferries joins us now for more on
this story. Let's start with these new investigations then, Bill,
(10:54):
what exactly is the Trump administration looking at for semiconductors
and pharmaceuticals?
Speaker 8 (11:01):
Yeah, thanks for having me. So, President Trump has ordered
the Commerce Department to undertake one of these what they
call Section two thirty two investigations. It kind of has
a national security implication, looking specifically at semiconductor chips, the
chip manufacturing machines, and hardware, as well as pharmaceuticals, and
(11:22):
that basically gives the Commerce Department two hundred and seventy
days to come up with a report for the President's desk.
Of course, we're only eighty plus days into his administration.
I don't think it's going to take two hundred and
seventy days to get this, but the end result is
likely to be some sort of recommendation on new sector
(11:42):
specific tariffs in those areas.
Speaker 2 (11:45):
Meanwhile, President Trump also suggesting that there may be another
U turn, this time on imported vehicles and car parts.
So what do we know about that?
Speaker 4 (11:54):
Right?
Speaker 8 (11:54):
So, President Trump floating the idea that this twenty five
percent tariff on imported vehicles could be eased or suspended,
we don't have He didn't really go into detail on that,
but it is another sign that the administration is perhaps
stepping back from its initial vow, I guess or commitment
to these twenty five percent tariffs. We know he wants
(12:17):
to see more manufacturing back in the US, but of
course it takes a whole lot of time to build
up that infrastructure in those factories and even a lot
of the parts for the production that would be required
have to come from overseas, so we don't have any details.
We don't know what the timeline is, but he is
floating the idea and it's benefited I think auto stocks
(12:39):
in some parts of the world.
Speaker 3 (12:40):
Today.
Speaker 1 (12:41):
We've also on the negotiation front, particularly thinking about the
tariffs for China, the Trade Representative Jameson Greer floating the
idea of discussions that could happen at the highest level.
Speaker 8 (12:52):
Yeah, Jamison Greer the USTR saying that he thinks that
there is interest in talks. The big question here is
it's almost the who blinks first here. I think the
Trump administration has signaled repeatedly that they would like Shi
Jinping and his aides to place a call to them.
I think on the other side, the Chinese have said
(13:12):
that they're willing to put up with this trade war
and even escalated at times if they need to, so
that it's unlikely that they're going to make that call.
They did praise some of the pullback and tariffs over
the weekend, but I think at this point they're willing
to wait and perhaps even absorb some pain before agreeing
(13:32):
to doks.
Speaker 2 (13:34):
Well, all of these tariffs do seem now quite tangled,
and they seem to be leading to confusion. How much
of this, though, do you think might be about consumer prices?
How much is the Trump White House paying attention to
US consumers?
Speaker 8 (13:48):
Well, you know, I think the auto teriff is an
interesting example. You had a lot of estimates out saying
that auto prices could go from even for just very
modest vehicles twenty five hundred to four thousand dollars in
aditional costs. That's a huge that's a huge burden on
households in the US. So I think they're looking at that.
We know when you had some of that bond fallout
(14:10):
and Tuesday last week, I think we know the President
said that that factored into his thinking about pulling back
on the reciprocal tariffs. So I think the market impacts
and the potential inflation impacts, those things show that the
president perhaps has a pain point.
Speaker 1 (14:27):
Okay, both varies. Our senior editor, thank you very much
for joining us with the latest on the many and
varied aspects of this tariff story.
Speaker 2 (14:34):
Now, the Trump administration has frozen two point two billion
dollars in multi year grants to Harvard University, the oldest
and richest US university after it refused to agree to
a list of government demands. It comes also as federal
funds and grants have been frozen or canceled for several
high profile US universities as part of the Trump administration's
(14:55):
campaign to force changes at elite universities. That's get more
on this and discussed with Bluebigs Tea added by a
Good Morning Tiva. There was a question about whether the
US universities would push back on a Trump administration demands.
What has the White House demanded of Harvard?
Speaker 9 (15:13):
Well, Caroline, it's interesting that we talk about pushback because
what's interesting here is that Harvard was previously willing to
work with the Trump administration that was on combating anti semitism,
which is actually where this all started. The Trump team
said that it initially began scrutinizing as much as nine
billion in its federal grants and contracts to Harvard in
(15:35):
an effort to root out anti semitism on campus. College
campuses have experienced incidents of anti semitism, including Harvard and Columbia,
and in February, the Trump team created a multi agency
task force to stop that. But now, according to Harvard's president,
Alan Garbet, the university is being subjected to numerous demands,
(15:56):
including canceling di programs, change is to admissions and hiring,
curbing the power of certain students and faculty administrators because
of their ideological views. So what Alan Garb is saying
is that this has been an expanded ask and it
proves that the goal of the Trump administration, according to him,
(16:17):
isn't simply about fighting anti Semitism. He thinks it's more
about a power struggle for control, as you mentioned, of
one of the world's most powerful institutions in Harvard.
Speaker 1 (16:29):
So how have Harvard and other institutions chosen to respond
to this from the Trump administration.
Speaker 9 (16:36):
Well, in Harvard's case, they've hit back pretty hard. The
school's president, Alan Garber, posted a statement on the website
and he said the university won't surrender its independence or
constitutional rights. So they're taking this pretty seriously. It looks
like they are planning to take the financial hits at
the moment. Harvard is a definitely better place than some
(16:57):
of its other peers to do that. Their endowment sits
at around fifty three billion dollars. But what's interesting too
is that their statement doesn't just talk about Harvard. It's
definitely not the only US college that has faced demands
from this administration. Actually, Columbia University another prominent example. They
handled it a bit differently. The Trump administration threatened to
(17:20):
freeze four hundred million dollars of their federal funding, and
in response to school actually agreed to do things like
band masks, expand campus police powers, and appoint a senior
member of staff to oversee the Middle East, South Asian
and African Studies department. Harvard has done the opposite here.
They've used this opportunity to make clear that they don't
(17:43):
think itself, or any other private university for that matter,
as its lawyers say in a letter, should allow itself
to be taken over or influenced by the federal government.
So they're taking a defiant stance in response to this.
Speaker 2 (17:57):
It does seem to be quite a deep ideological battle
in the US, and many people see that sort of
having influence or understanding what is going on on university
campuses is quite crucial to the fabric of the US
or really any country well.
Speaker 9 (18:13):
Definitely, and actually looking back at some of the demands,
it's easy to see why some may think this is
about more than just university students. For their parts, the
Trump administration actually say that Harvard's response to their request
convey a troubling entitlement mindset and that federal funding essentially
should come at the price of upholding what they're referring
(18:36):
to as civil rights laws. So in the eyes of
the government, perhaps it is also about more than just
the university. But speaking about the implications of this discussion
for wider society, of course, places like Harvard and Columbia
some of the most important educational institutions in the world,
and they are emblematic of intellectual freedom. Larry Kramer, who
(18:59):
is the vice chancellor of the London School of Economics
but formerly the dean of Stanford Law School in the US,
spoke to US a couple of weeks ago about the situation.
Here's what he thinks will happen and the whyde reaching
effect that could take place.
Speaker 10 (19:13):
US has long haired the largest dominant university system in
the world, and the effective dismantling of that and the
effective effort to really crush some of the best universities
in the world will have just you know, collateral effects
of all sorts that are hard to specify, but you
(19:33):
will be unfolding over the next couple of years.
Speaker 9 (19:36):
So Larry Kramer there from the London School of Economics
saying this is about more than just the control of
elite US universities, but certainly a story that's likely to
develop in the coming weeks.
Speaker 1 (19:48):
This is Bloomberg Daybreak Europe. You're morning brief on the
stories making news from London to Wall Streets and beyond.
Speaker 2 (19:54):
Look for us on your podcast speed every morning, on Apple,
Spotify and anywhere else you get your podcast.
Speaker 1 (20:00):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (20:05):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 1 (20:13):
I'm Caroline Hepka and I'm Stephen.
Speaker 7 (20:15):
Carol.
Speaker 1 (20:15):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg day
Break Europe.
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