On today's podcast:
1) Part of the equity optimism comes on signs the US will avert a government shutdown. Senate Democratic leader Chuck Schumer opted not to block the Republican bill, avoiding a government shutdown.
2) The US quietly tightens sanctions on Russia as it seeks a ceasefire deal. The Trump administration let a license covering payments for energy to a handful of Russian banks expire, making it difficult for foreign oil refineries, traders, and buyers of Russian gas to pay Russia in dollars or other Western currencies.
3) President Trump's trade war continues to impact global markets. Companies worldwide are planning for the worst as President Trump's tariffs create uncertainty, with some setting up "tariff task forces" to mitigate the impact on sales, profits, and market shares.
Bloomberg Audio Studios, podcasts, radio news.
Good morning.
I'm Stephen Carroll and I'm Karen Moscow. Here are the stories we're following today.
Karen, The rise in futures comes in part on signs the US will avoid a government shutdown. That's because Senate Democratic Leader Chuck Schumer is opted not to block a Republican spending bill. The decision was made despite a growing number of Democrats wanting to use their limited leverage to restrain Elon Musk's cost cutting efforts. Addressing the Senate, Schumer explained why he decided to walk back the threat of a shutdown.
A shutdown would give Donald Trump an Elon Musk carte blanche to destroy vital government services at a significantly faster rate than they can right now.
Republicans likely need seven other Democrats to join Schumer, who wouldn't say if there were now enough votes within his party to overcome a fellibuster.
Well, Stephen. The lift of the markets this morning comes after the S and P five hundred slipped into correction territory. The index is down ten percent from its all time high. The tech heavy Nasdaq one hundred index is also in a correction and the Dow Jones Industrial average is nine point three percent below its last record in December. Lauren Goodwin, the chief market strategist at New York Life, says tariff worries are rattling Wall Street, but there is no.
Doubt that the volatility that we've seen in the market over the last couple of weeks is about policy uncertainty. It's not about economic fundamentals. And what's so interesting about that is typically when we see drawdowns of this size, it's the other way around. There's a concern implicit in the economy about growth or employment, et cetera. This time it's uncertainty causing the concerns about growth and employment.
New York Lives Lauren Goodwin believes markets will remain volatile until some of the policy uncertainty clears.
Investors are the most bullish on tree treasuries relative to stocks for at least three years. That's the findings of the latest Bloomberg Markets Live Pulse survey. US bonds are expected to deliver a better volatility adjusted return over the next month than equities, according to a survey of more than five hundred market participants conducted this week, and it's not even close, with seventy seven percent backing treasuries. That's the highest level ever in the survey data going back to twenty twenty two.
Well Steven. Former Treasury Secretary Stephen Manuchen advised investors not to overreact to the current sell off inequities and discounts risks of a US recession. In an interview with Bloomberg, Manuchin attributes the market correction to a natural correction in the market fueled by massive tech spending.
We came in with the market being fully priced, so I think a five to ten percent correction on the s and per the NESTAC actually makes sense. The market's been really fueled by massive amounts of tech spending, particularly around AI. So some of this is a natural correction in the market, and some of this is the market worrying about tariffs and the impact on tariffs.
Former Treasury Secretary Stephen Manuchin also discounted risks of a US recession. To hear the full conversation, get the Bloomberg Talks podcast or watch it live on the Bloomberg podcast page on YouTube.
Karen as for the global trade war. President Trump is threatening a two hundred percent tariff on European wine, champagne, and other alcoholic beverages. Trump says he'll impose the tariffs if the European Union does not immediately remove its countermeasures against his twenty five percent tariffs on steel and aluminum. In an interview heard right here on Bloomberg Radio, Commerce Secretary Harold Lutnik says the EU duties are disrespectful.
The President has made it crystal clear that he finds this tit for tat really abusive and aggravating. Right, his objective is steel and aluminum tariffs. Let him build his steel and aluminum business in America, because that's import.
Commerce Secretary Harold Lutnik added he's thankful the UK and Mexico refrained from engaging in tit for tat tariff hikes and weren't trading partners that upset President Donald Trump opened themselves to severe reaction.
Well, Stephen, the president of the European Central Bank, is warning of severe global fallout from a trade war with the US. Here's what Christine Laguard told the BBC.
If we were to go to a real trade war where trade would be dumpened significantly, that would have severe consequences. It would not be calls for concern. It would be severe consequences as growth around the world and for prices around the world, but particularly in the United States, but.
Also in Europe.
It would push Europe into recession.
Wouldn't they.
You know what it's doing at the moment, stirring European energy. It's a big wake up call for Europe. Maybe this is a European moment yet again.
And the Guard also told the BBC that Brussels had no choice but to retaliate against the following its decision to implement twenty five percent tariffs on global steel and aluminium imports.
Well, Karen, if investors think the FAD will step in if tariff's damage the economy, they may be wrong. That's according to former New York Fed President William Dudley.
I think the problem is that clares are bad for growth and bed for inflation, which puts the FED in a buying Basically, they're missing by more on both sides of their mandate. So I think in the near term the Feds could basically be on hold waiting for more information.
Well Dudley, now Bloomberg opinion columnist, says the FED could be in a bind if tariffs lead to slower growth and higher inflation expectations. Read more in his latest column at Bloomberg dot com slash opinion or opi and go on the Bloomberg terminal.
Well, now, Stephen, we have the latest on the war in Ukraine. Russian President Vladimir Putin says he wants to discuss a proposed ceasefire in Ukraine with President Trump. However, Putin said any truce should lead to a long term resolution of the war. Trump says he hopes that Russia agrees to the ceasefire deal.
We're talking about humanity, We're not talking about the money. But then you add the money to it, and you know, hundreds of billions of dollars is being spent and really wasted, so unnecessarily it should have never happened.
Meanwhile, the US is titaned sanctions on Russia by restricting payments for energy, even as it pursues peace negotiations with Putin. Time now for a look at some of the other stories making news in New York and around the world. For that were joined by Bloomberg's Michael Barr or Michael good morning.
Good morning. Karen, an American Airlines passenger Jed diverted to Denver after reporting engine vibrations last evening. The plane landed safely, but while taxing to the gate, an engine caught fire. Passengers were evacuated using the aircraft's slides, including this woman.
It was just a bunch of panicky people around me, and the gentleman right next to me was a fireman, so he was trying to calm everybody down.
The FAA says an investigation is under. Columbia University says it has expelled or suspended some students who took over a campus building during pro Palestinian protests last spring, and temporarily revoked the diploma diplomas of some students who have since graduated. The university said in a campus wide email that its judicial board brought a range of sanctions against dozens of students who occupied Hamilton Hall based on its evac evaluation of the severity of behaviors. Meanwhile, New York City police arrested almost one hundred protesters after demonstrators from a Jewish group filled the lobby of Trump Tower on Fifth Avenue in Manhattan. They are protesting the ice arrest of Columbia grad student Makmud Khalil. He organized a pro Palestinian demonstration against Israel at Columbia last year. The demonstrators from Jewish Voice for Peace or Red Shirts reading Jews say stop arming Israel. In YPD Chief John Shell.
In two hours, what our secret service pond is in? Trump Security had this situation cleared up.
With no issues.
Audio courtesy of News for There were tense exchanges when Republican Congressman Chuck Edwards return to his North Carolina district for a town hall with constituents. Many presidents say they are not happy with Republicans and President Trump with how they are running the country. We've got a lot to be proud of in this country.
I happen to agree with a lot of the things that's going.
On in Washington, DC right now.
I know many of you are not. Congressman Edwards face questions from people including possible cuts to Social Security, federal layoffs, and Elon Musk's Department of Government Efficiency. Global News twenty four hours a day and whenever you want it with Bloomberg News Now now, Michael Barn, this is Bloomberg.
Karen, all right, Michael Barn, thank you. That is time down for the Bloombergy Sports update brought to you by Try a State Outie. Here's John stash Hower Good Friday Morning.
John, Good Morning, Karen March. Madness on display at several conference tournaments. At the ACC, Louisville avoided an upset by scoring at the buzzer to beat Stanford by two. At the SEC, Kentucky scored with a half second on the clock for a one point win over Oklahoma that came after Texas's double overtime upset of Texas A and M. There was double overtime at the Big East. Creighton trailed most of the night at one point by seventeen, but got by DePaul Saint John's began the day easy, went over Butler seventy eight to fifty seven Red Store and bring their twenty eight and four record nineteen to zero at home to a semifinal game tonight at the Garden against Marquette. Six days ago in Milwaukee, the Johnny's one on a basket at the buzzer of overtime. Speaking of ot that's where the Rangers were in Minnesota.
Jack Jones boots upon shop, sit back, Tanaron picks it up. Baneran leaves at per Miller back to Paneron Indeed drop to back, Snider pick Saboon.
Back, Henry's car on MSJ Brayden Schneider wins at three to two after earlier goals by Vincent Trocheck and Johnny Brazinski and the Rangers and their four game losing streak. They also got good news when Columbus lost, The Rangers and Blue Jackets tied for the last playoff spot on the east of the Rangers, who played one more game. Devils beat Edmonton three to two. Bruins lost in Ottawa six to three. The Nets lost in Chicago won sixteen to one, ten three way time the lead. After the opening round of the Players Championship. Americans Lucas Glover and JJ Spahn both shot six understor did Camillo Viegas. Rory mcklroy shot four under Scotty Scheffer's minus three. The Tampa Bay Rays, who have long sought a new stadium, finally had plans to build one for one point three billion, but then came Hurricane Milton. It damaged the current home Trafficcanna Field. It's the reason Ray's owner Stu Sternberg says they couldn't come up with a seven hundred million dollar payment that was due. The Rays have now scrapped plans for the new stadium. Stashowards Bloomberg Sports Card and Stephen.
Coast to Coast on Bloomberg Radio, nationwide on Sirius Exam and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Five twelve on Wall Street. Those features pointing higher as Senate Democrats have pulled back on their threat of a government shutdown, Chuck Schumer ultimately choosing not to block the Republican written stop gap funding Baill. Let's discuss now at Terry Haynes, founder of Pangaea Policy. Terry, great to talk to you. Do you see the risk of a shutdown completely gone?
Now, Stephen, good morning, and no, not completely. I'll get they'll usually give you five percent for lightning striking, and you know, and there's also there's always a possibility that enough Democrats vote here to block temporarily. But you know, Schumer's abdication on this is a very positive sign and kudos to him. By the way, if you've got a bit at hand, the best thing to do is fold, and he certainly did.
But look, is there a question of leverage being lost here? That was part of the reasoning that some Democrats did want to get involved in blocking this, is there is there something the Democrats have lost and making this call.
You know a lot of the Democratic interest groups will say that they've lost things, but I'm not so sure about that. You know, you can't win and revive your party without without a strong message and without unity, and right now the Democrats don't have either. So much smarter political play for the Democratic leader to live to fight another day here, I.
Think does this project the image of unity that Chuck Schumer wanted though, if there's going to be those on the sidelines that we're going to complain about this decision?
No, well, it doesn't really project a unity message at all. It projects quite the opposite that there that they're split on it. You have just kind of the thin end of the wedge. Here is Senator Fetterman of Pennsylvania who already was going to vote with with the with the Republicans on this, and there's you know, easily half the caucus who thought that there were it was it was better to continue to be on the side of keeping the government open even with the results that they didn't particularly like.
So this needs giving futures a bit of optimism. I had to today's trading session, but of course the trade tension still playing in the background as well. What's your view on the question of escalation from here? It seems to be all going in one direction in what sense? Well that we're talking about Trump adding, you know, threatening two hundred percent tariffs on European wine and champagne. You know is are we going to see further fight back from the EU on this?
Well, I think you're going to see continued tit for tat. Sure, there's two kinds of tariffs here. One is the but I will think I was the geopolitical tariffs Canada and Mexico negotiations underway for for better border security and drugs, that sort of thing. The other is the tit for tet reciprocals that are probably coming in April. But you know, the ultimate goal here, and I know markets aren't convinced by this, but the ultimate goal here both Bessant and Lutnik talked about this yesterday, are frankly to have tariffs go away. The idea is to remove tariff barriers, and you know, of course that benefits the United States probably more than it benefits of other countries. But that's where the administration is going and that's what they seek to do.
Are the winners being created from this as well? I mean kaya Kalas, the East top diplomat, telling Bloomberg that China's laughing at these escalations of tensions between the US and the EU.
I'm always interested, you know, and I have great respect for miscalous and at the same time and know very well the you know that she's looking right into the teeth as a bear, so to speak, in Estonia. And at the same time, I think there probably needs to be more of an acknowledgment from the European Union about the geopolitical strategy that's implicit in the economic strategy. The big reason why Trump is going after this with such alacrity really is that he's trying to turbo charge of the United States economy, frankly, to build geopolitically the strongest economy and frankly phil holes in the United States ability to defend itself manufacturing and other things, they.
Says Bloomberg Daybreak Your Morning podcast on the stories making news from Wall Street to Washington and beyond.
Look for us on your podcast feed at six am Eastern each morning, on Apple, Spotify, and anywhere else you get your podcasts.
You can also listen live each morning starting at five am Wall Street Time on Bloomberg eleven three to zero in New York, Bloomberg ninety nine to one in Washington, Bloomberg ninety two nine in Boston, and nationwide on serious XM Channel one twenty one. Plus listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto into Faces.
Our flagship New York station is also available on your Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.
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.
I'm Stephen Carol and I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Day bare eighth