Trump Hikes Brazil Tariffs; Texas Flood Recovery Efforts

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0:42If you listen to financial news, you know a lot of time to spend thinking about what's next. The next opportunity. The next investment. The next move. But sometimes what matters most is being ready for what you never saw coming. For more than 75 years, Cincinnati Insurance has worked with independent agents to help protect businesses, homes, valuables, and more. Because planning for the future isn't only about knowing what's next. It's about making sure you're ready for what you can't predict. Let Cincinnati Insurance make your bad day better. Find an independent agent at CINFIN.com. Game night rush, or any night of the week, really, Genius keeps every order moving.

1:25From online ordering to your kitchen to the front counter. Big league reliability for any business. That's Genius.

1:36Bloomberg Audio Studios. Podcasts. Radio. News. Good morning, I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Well, Karen, we begin with the latest developments in the global trade war. President Donald Trump has unveiled a new round of tariff demand letters, including a 50 percent rate on imports from Brazil. That threat set the country's currency plunging as the president escalates a dispute with leftist leader Luis Inacio Lula da Silva. We get more from Bloomberg's Jill Deases. This is certainly one that seems to be more political than economic. I mean, Brazil, first of all, they weren't part of the Liberation Day grouping because it's run a trade deficit with the United States.

2:21Almost all of the others have really run large surpluses. So what he's spelled out as it relates to Brazil, as it relates to their leader Lula, is that he's really upset about the treatment of former President Bolsonaro. And then the other thing I'd bring up as it relates to the Brazil situation is that, you know, prominent member of BRICS, they held their big summit in Brazil just a few days ago. And Lula was really kind of leading the charge there in terms of railing against the U.S. on various issues. Bloomberg's Jill Deese says President Trump also announced tariff rates on other countries, including 30 percent for Algeria, Libya, Iraq and Sri Lanka and a 20 percent rate on goods from the Philippines.

2:59Nathan, President Trump also confirmed that a planned 50 percent tariff on copper imports will begin on the 1st of August. Analysts say the move could hurt American producers of everything from automobiles to appliances. The chair of the President's Council of Economic Advisers, Stephen Myron, says the move is a key part of Trump's push to rebuild U.S. industries. You know, there are certain critical minerals of which copper is one that you just absolutely need if you're going to have a manufacturing sector. And having a manufacturing sector is important, not just economically because it tends to be a high capital, high productivity field.

3:33Chair of the President's Council of Economic Advisers, Stephen Myron, speaking to Bloomberg yesterday. President Trump says copper was the second most used metal by the Department of Defense. Meantime, Karen, President Trump is sounding optimistic about a ceasefire deal between Israel and Hamas. The president says negotiators are very close to an agreement. There's nothing definite about war and Gaza and all of the other places that we all deal with so much. But there's a very good chance that we'll have a settlement, an agreement of some kind this week and maybe next week, if not. President Trump responded to an Axios report that U.S., Israeli and Qatari officials held a secret meeting at the White House to work out lingering disagreements.

4:18Israeli Prime Minister Benjamin Netanyahu says he is sticking to his goals in Gaza. We want to achieve the release of our hostages. We want to end Hamas rule in Gaza. We want to make sure that Gaza does not pose a threat to Israel anymore. Prime Minister Netanyahu spoke at a meeting with senators on Capitol Hill. Hamas says it's agreed to release 10 hostages as talks continue. White House Envoy Steve Whitcoff says the U.S. wants a deal by the end of the week on a 60-day ceasefire that would free all hostages, living and dead. Now, Karen, an update on the flood recovery in Texas. At least 160 people are still missing in hardest-hit Kerr County.

4:56Officials say no one has been found alive since July 4th after the wall of water swept through more than 60 miles of the Guadalupe River. As the search effort continues, Homeland Security Secretary Kristi Noem is reiterating her call to overhaul the Federal Emergency Management Agency. State and local leaders know that their communities, they know what they need better than the government ever could. They know their exact needs and they know how best to prepare. Secretary Noem spoke at a meeting of the FEMA Review Council in New Orleans. FEMA personnel are currently assisting in the recovery effort in Texas, and President Trump is scheduled to visit the state tomorrow.

5:33Nathan, let's turn to the markets. NVIDIA has reached historic heights. The chipmaker became the first company to reach a$4 trillion market valuation. Ian King covers NVIDIA for Bloomberg News. On a price-to-innings ratio 52 times, doesn't sound totally crazy, and that doesn't even get it into the top 10 list of semiconductor makers. So relatively, it's not that expensive. No other semiconductor company has ever had more than$100 billion of revenue ever, not even Intel at its peak. Bloomberg's Ian King says NVIDIA shares are up more than 1 ,000 percent since the beginning of 2023. NVIDIA now accounts for 7.5 percent of the S &P 500, and the stock is up two-thirds of a percent this morning.

6:18And Microsoft shares a little changed in the pre-market, Karen, but they also closed at an all-time high yesterday, trailing only NVIDIA in market cap. And Microsoft says its push into artificial intelligence is paying off. Bloomberg News has learned at a presentation this week, the company's chief commercial officer, Judson Althoff, said AI tools are boosting productivity in everything from sales and customer service to software engineering. Althoff says AI saved Microsoft more than$500 million last year in its call centers alone. Nathan, while Nvidia and Microsoft shares are climbing to all-time highs, Tesla has not.

6:54The stock is down 26 % in 2025. CEO Elon Musk lashed out at Wedbush's Dan Ives when the analysts made suggestions to Tesla's board. Musk said on X, quote, shut up, Dan. And we get the story with Bloomberg's Charlie Pellett. Musk's comment came after Ives called on Tesla's board to rein in Musk's political activity. Hey, look, I mean, I knew Elon was not going to be happy. Ives explained his position on Bloomberg Businessweek Daily. The reality is, you know, the board, they basically need to now step it up. Ives does remain Wall Street's most bullish Tesla analyst with an outperform rating on the stock and a$500 price target.

7:39In New York, Charlie Pellett, Bloomberg Radio. All right, Charlie, thank you. Let's check some other stocks on the move this morning. we're watching shares of Kellogg. They are surging more than 48 percent. Bloomberg News has learned the cereal maker may be bought by Italian candy maker Ferrero International for about three billion dollars. Kellogg, of course, the owner of cereal brands Fruit Loops and Frosted Flakes. It's been struggling to revive growth as consumers move away from sugary foods. And Nathan, a management change is on the way at one of the world's biggest advertising agencies. WPP has named Microsoft executive Cindy Rose as its next chief executive officer.

8:18She replaces Mark Reed as the advertising group looks for ways to restart sales growth and win new customers. Rose, who is currently chief operating officer at Microsoft's global enterprise business, begins her new job at WPP on September 1st. Time now for a look at some of the other stories making news in New York and around the world, and for that, we're joined by Bloomberg's Michael Barr. Michael, good morning. Good morning, Karen. Queen's Assemblyman Zoran Mamdani thanked teachers after he picked up a key endorsement in his bid to be the next mayor of New York. The United Federation of Teachers, the city's most powerful teachers union, is backing the Democratic Socialist.

8:58The UFT had not endorsed a candidate in the Democratic primary. This is the campaign of working people. This is the campaign of organized labor. And this is the campaign that will win in November. The endorsement comes after President Trump threatened to overtake New York City should Mamdani be elected. A Long Island community is angry after a 20-year-old Suffolk County Community College honors student was detained by ICE agents. Sarah Lopez Garcia was sent to a Louisiana detention facility to await trial and probable deportation to Columbia. Lopez Garcia was detained almost two months ago with their mother when ICE agents were looking for someone else.

9:41Her fiancé says Lopez Garcia was in the process of seeking legal status in the U.S. when she was detained. Measles cases in the U.S. are at their highest in more than three decades. According to the U.S. Centers for Disease Control and Prevention, the U.S. has close to 1 ,300 cases since the beginning of the year. That's higher than 2019. 18 states have seen outbreaks this year. Experts fear the U.S. may lose its status as having eliminated measles. Dr. Darian Sutton. The reason is because measles is very good at infecting people. It is the most contagious virus that exists on this planet. And right now, this surge is not just a surge.

10:22It's a warning that our public health protective barrier has cracks in it. Dr. Darian Sutton. Manhattan rents hit a record high for the fourth time in the past five months. According to appraiser Miller Samuel and brokerage Douglas Elliman, the median rent on new leases signed in June was$4 ,625. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr, and this is Bloomberg Carrot. All right, Michael Barr, thank you. This is the Bloomberg Tech Minute brought to you by ChatGPT. Now with ChatGPT Work, I'm Carol Masser. Social media posts on sleep outnumber those on exercise by 3 to 1 and those on diet by 5 to 1, according to consumer researcher Ryla Global Consulting.

11:09And so it may come as no surprise that there are seemingly no limits to what we will do to get a good night's sleep. People are spending on everything from pricey sleep trackers, AI-powered scent therapy machines, to$3 ,000 body temperature-regulating Manosphere-endorsed mattress covers, and couples outfitting totally separate bedrooms. As Bloomberg's Dina Shanker reports, it all adds up to a sleep support industry that's a$300 million business, with growth coming from functional beverages and sleep powders, even as some experts warn that these products may not be effective and can even be harmful.

11:44Despite the spend, 6 out of 10 American adults still don't get the 7 to 9 hours of sleep the credible science says we need. As for experts, they recommend making lifestyle changes, such as getting sunlight and limiting screen time to improve sleep. That's the Bloomberg Tech Minute brought to you by ChatGPT. Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChatGPT.com today by selecting Work Mode, available on Plus and Pro Plans. If you listen to financial news, you know a lot of time is spent thinking about what's next. The next opportunity. The next investment. The next move.

12:24But sometimes what matters most is being ready for what you never saw coming. A storm damages a second home. A pipe bursts above a collection you spent decades building. An unexpected loss puts a growing business on pause. Those are the days no one sees coming. But for more than 75 years, Cincinnati Insurance has been ready when they do. With deep expertise, coverage for businesses, homes, valuables, and more, Cincinnati Insurance works with independent agents who take the time to understand what matters to you. Together, they help protect more than what you own. They help protect what you're building toward.

13:00And when a bad day does come, Cincinnati Insurance has real people there to help make things right. Because planning for the future isn't only about knowing what's next. It's about making sure you're ready for what you can't predict. Let Cincinnati insurance make your bad day better. Find an independent agent at CINFIN.com. Game night rush or any night of the week, really. Genius keeps every order moving. From online ordering to your kitchen to the front counter. Big league reliability for any business. That's genius.

13:40time now for the bloomberg sports update and here's john stash hour john good morning good morning karen in the midst of last week's six game yankee losing streak came the news that dependable starter clark schmidt was done for the season taking his spot of the rotation at least for now cam schlittler six foot six inch 24 year old from outside of boston made his major league debut at the stadium. Pitched well. Got held from the Yanks all-star infielder. High drive. Center field. Rodriguez back. He's on the track. He's at the wall. See ya. In the Monument Park. A solo shot for Chisholm. 4-1 Yanks.

14:15On the Yes Network. Two innings later. Jazz Chisholm homered again. Yanks beat Seattle 9-6. Chisholm's now back playing at his better position. Second base. D.J. LeMayu had been playing there. Yanks didn't want to use him at third base didn't really have any use for him so they have designated lemayu for assignment here's aaron boone a tough couple days you know some some some hard conversations and um you know and then ultimately coming to this decision conclusion obviously not easy for you know what's been a great player and who's done a lot of great things for this organization in LeMay's first two seasons with the Yanks.

14:56He batted.327 and.364, but he's not been anywhere near those averages recently. The Mets rained out in Baltimore, doubleheader today. Red Sox a sixth straight win, 10-2 over Colorado. Nationals won for new manager Miguel Cairo, 8-2 in St. Louis. The Giants are believed to be looking to sell a 10 % ownership stake, and Eli Manning had expressed an interest. He's now saying he won't pursue it because it's too expensive. The Giants are said to be worth$10 billion. Frank Layden has died at 93. Brooklyn Natives who became the coach and GM of the Utah Jazz. His son, Scott, the former Knicks GM. John Stash, we're Bloomberg Sports.

15:32Coast to coast on Bloomberg Radio. Nationwide on Sirius XM. And around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Investors and businesses are grappling with the latest tariff letters and sectoral threats from President Donald Trump, including 50 % rates for imports from Brazil and copper products. Joining us now for the latest on the trade wars, Bloomberg News Global Business Editor Josh Gallou. And Josh, the copper tariff in particular has gotten the market's attention pretty much all week long. I mean, there's still some questions about how something like that could be implemented, though, are there?

16:14Yeah. As a matter of fact, markets appear to doubt that it will be the full 50 percent that Trump has threatened. You can see that in the margin between the price in the U.S. and the price in London. And they're not pricing in that full 50 percent. But look, this is something that, you know, Trump and his administration argue is sort of a national security priority because copper is used in such an incredibly wide range of products because of its, obviously, its conductivity. It's in a lot of alloys that are used for all kinds of appliances, motors, cars, everything. So this is a really difficult, It is a crucial metal for the U.S.

17:05and anyone looking to make these products. But the U.S. makes about 50 % of its own, or it mines about 50 % of its own copper. And then the rest comes from countries like Chile, Canada, Peru, Mexico. So this is going to hurt American producers of all those things that I was just mentioning who have to import copper. The price is going to go up and that can have a really wide impact on the economy. And when it comes to this tariff threat for Brazil, obviously a 50 percent rate is much higher than some of the other rates that we've heard about so far. But this one seems a little more political than related to the actual trade dynamic between the U.S.

17:53and Brazil. That's right. What's interesting here is that Brazil actually runs a deficit with the U.S. when it comes to trading of goods. And, of course, that balance of trade is what Trump has always pointed to, that he wants to even out when he talks about putting in reciprocal tariffs or even just straight bilateral tariffs. But, you know, in Trump's announcement for this, he did talk about Bolsonaro, who, of course, is the former Brazilian president who is facing charges of insurrection after trying to interfere with the election of in, I think, 2022 of Lula. And, you know, he didn't even – there is no real economic ground to stand on, at least that's consistent with his other tariffs that he's been putting across the board against countries.

18:49This one is clearly more political, and he's demanding that Brazil drop those charges. And right now it looks like Brazil is very much not keen to do so. So we'll have to see how that plays out. But you're right, it's really a much more political use of that tool that we haven't quite seen used quite so blatantly like that. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify, or anywhere else you listen. You can also listen live each morning starting at 5 a.m.

19:27Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121. Plus, listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.

20:12If you listen to financial news, you know a lot of time is spent thinking about what's next. The next opportunity. The next investment. The next move. But sometimes what matters most is being ready for what you never saw coming. For more than 75 years, Cincinnati Insurance has worked with independent agents to help protect businesses, homes, valuables, and more. Because planning for the future isn't only about knowing what's next. It's about making sure you're ready for what you can't predict. Let Cincinnati Insurance make your bad day better. Find an independent agent at CINFIN.com. From game day crowds to memorable meals, Genius by Global Payments keeps your kitchen and floor perfectly in sync.

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