Bloomberg Daybreak: US Edition

Bloomberg Daybreak Weekend with Tom Busby takes a look at some of the stories we'll be tracking in the coming week.

• In the US – a look ahead to a look ahead to home sales data and earnings from Target.
• In the UK – a look ahead to the Qatar Economic Forum.
• In Asia – a look ahead to earnings from Baidu.
  
  
  

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On today's podcast:
1) NJ Transit locomotive engineers go on strike affecting the commute for hundreds of thousands of commuters. The strike is the result of failed contract negotiations between NJ Transit and the Brotherhood of Locomotive Engineers and Trainmen over a wage increase, with the union seeking the rail workers' first raise since 2019. The shutdown will severely impact service, with engineers responsible for operating the trains, and NJ Transit officials encouraging riders to work remotely and travel on the system for essential purposes only.
2) President Trump to meet with Russian president Vladimir Putin 'soon' as he heads home from the Middle East. The president told reporters Friday he would return directly to Washington at the end of his Middle East visit, despite flirting with a potential in-person meeting with Putin and Ukraine's Volodymyr Zelenskiy with the aim of ending the war in Ukraine.
3) SALT remains a sticking point as Congress debates a tax bill. Republican infighting in the US House is threatening to sink President Trump’s legislative agenda over details of the giant tax bill. Republicans plan to work through the weekend to resolve the issue and other unresolved matters, with plans to bring the bill to the House floor next week.

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On today's podcast:

1) Top US and European diplomats are gathering in Antalya, Turkey on Thursday as the outlook dims for any major breakthrough in expected peace talks between Ukraine and Russia.

2) President Donald Trump said the US might be getting closer to an agreement with Iran to curb the Islamic Republic’s nuclear program.

3) UnitedHealth Group Inc. is under criminal investigation for possible Medicare fraud, the Wall Street Journal reported, citing unidentified people familiar with the matter.

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On today's podcast:

1) The Trump administration is clearing a path for two key Persian Gulf allies to pursue their artificial intelligence ambitions — and some of the biggest US tech companies are seizing on that opening with plans to spend billions of dollars in the region.

2) The S&P 500 and Nasdaq 100 indexes turned higher for the year on Tuesday, reversing multi-trillion dollar routs, as enthusiasm for US stocks grows with global trade tensions cooling after the Trump administration and China agreed to temporarily lower tariffs.

3) House Republicans could land on a compromise on the state and local tax deduction on Wednesday, a deal that would represent a breakthrough in one of the thorniest policy debates in President Donald Trump’s economic package.

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On today's podcast:

 1) The Wall Street stocks rally is set to pause due to concerns about inflation and economic growth, with US futures pointing to a decline. Investors are taking a breather after the 90-day tariff cool-off between the US and China, and will be looking for clues on the trajectory of Federal Reserve interest rates in the US inflation print.

2) President Donald Trump is in Saudi Arabia on his first major overseas trip since taking office. He was welcomed on the tarmac by Crown Prince Mohammed bin Salman in a sign of their warm ties. Treasury Secretary Scott Bessent is also in Riyadh where he told an investment forum he’s upbeat on trade talks with nations in Asia and that progress with Europe will be slower.

3) US Treasury Secretary Scott Bessent said the European Union has a "collective action problem" that's hampering trade negotiations with the US. Bessent downplayed the possibility of a quick agreement with the EU, citing differences among member states such as Italy and France.

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On today's podcast:

 1) Stocks soar as the U.S. and China agree to de-escalate their trade war. The US and China will temporarily lower tariffs on each other's products, with the US reducing its levies from 145% to 30% and China reducing its duties from 125% to 10%. The tariff reductions are a move to cool trade tensions and give the two countries three more months to resolve their differences, with talks potentially leading to "purchasing agreements" by China.

2) Drug stocks tumble as President Trump plans to order pharmaceutical price cuts. The declines affected European drugmakers, US drugmakers, and Asian pharmaceutical companies, with some companies experiencing their biggest one-day loss since August. The plan to lower prescription drug prices may have a significant impact on the industry's revenues, particularly for companies that depend heavily on US sales

3) Hamas says it will free its last American hostage as the president heads to the Middle East. It will release 21-year-old Israeli soldier Edan Alexander, a US citizen, as a step toward reaching a new ceasefire agreement in Gaza. The release is a result of renewed talks between the US and Hamas.

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Bloomberg Daybreak Weekend with Tom Busby takes a look at some of the stories we'll be tracking in the coming week.

• In the US – a look ahead to U.S eco data and earnings from the retail giant, Walmart.
• In the UK – a look ahead to Portugal’s general election.
• In Asia – a look ahead to Japan industrial production, PPI, and GDP data.

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On today's podcast:

1) The Trump administration is weighing a dramatic tariff reduction during weekend talks with China to de-escalate tensions and temper the economic pain both are already starting to feel.

2) President Donald Trump is pushing lawmakers to increase tax rates on some of the wealthiest Americans as a way to offset other cuts in his signature economic package.

3) Cardinal Robert Francis Prevost was elected as Roman Catholic pontiff, the first ever pope from the US and a possible bridge between the moderate and hardline sides of a divided Church.

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On today's podcast:

 1) President Trump is expected to unveil a limited trade deal with the UK this morning and hints at a new tension point in trade talks with China. The UK deal is likely to focus on reducing tariffs on cars and steel, and may include discussions on tech, AI, and digital trade, but will come with significant caveats and may not be a comprehensive trade pact.

2) Fed Chair Jay Powell says he won't be rushed into lowering interest rates. Powell says he won't lower borrowing costs until there's more certainty on the direction of trade policy, which will have to come from the White House. The Federal Open Market Committee held interest rates steady and said the risks of seeing higher inflation and unemployment had risen due to uncertainty over trade policy and tariffs.

3) The White House plans to get rid of Biden-era chip export restrictions. The repeal would provide fresh opportunities for other countries to negotiate their own chip access, influenced by investment promises or broader trade and diplomatic considerations, while measures targeting China would remain in place.

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Bloomberg's Tom Keene, Jonathan Ferro and Lisa Abramowicz discuss remarks from Fed Chair Jay Powell following the Federal Reserve's latest policy decision on a special edition of Bloomberg Surveillance.

Federal Reserve Chair Jerome Powell said officials are not in a hurry to adjust interest rates, adding tariffs could lead to higher inflation and unemployment. “If the large increases in tariffs that have been announced or sustained, they’re likely to generate a rise in inflation, a slowdown in economic growth and an increase in unemployment,” Powell said Wednesday at the conclusion of a two-day meeting in Washington. “The effects on inflation could be short lived, reflecting a one time shift in the price level,” he said. But it’s “also possible that the inflationary effects could instead be more persistent.”

Officials voted unanimously to keep the benchmark federal funds rate in a range of 4.25% to 4.5%, where it has been since December. In a statement, policymakers said they see a growing risk of both higher inflation and rising unemployment. “Uncertainty about the economic outlook has increased further,” the Federal Open Market Committee said in a statement. They added, “the risks of higher unemployment and higher inflation have risen.”

The S&P 500 index of US stocks and Treasury yields fell following the announcement, while the dollar pared gains.

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