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Bessent Says It Is ‘Implausible’ Tariffs on China Go Below 10%

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US Treasury Secretary Scott Bessent said the current tariff level on China is “obviously a floor,” with a process in place to avoid further escalation as he discusses the US and China temporarily lowering tariffs on each other’s products. Bessent also addressed the potential for talks between Presidents Donald Trump and Xi Jinping and offered an update on Asia trade negotiations and his outlook for the tax bill and deregulation by the end of the year. He spoke on “Bloomberg Surveillance.”

00:00 Secretary Bessent
00:30 Bessent on talks with China
00:50 Bessent says neither side wants a decoupling
02:00 Bessent – this is a pause down to 10%
02:56 Bessent, this is a floor for tariffs
05:30 Bessent: we are focused on fair trade
07:19 Bessent: we need a fair deal for the American people
09:00 Bessent: this is a 90 day pause
10:00 Bessent on the fentanyl crisis
12:30 Bessent on future trade negotiations

Sign up for the Balance of Power newsletter for the latest political news, analysis, charts, and dispatches from around the globe. https://bloom.bg/3yEZvWd
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Brazil Markets Set to Dive on Lula Win, EU Plans to Hit China With More Curbs

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European stocks exposed to Brazil fell after President Luiz Inácio Lula da Silva came from behind to win Brazil’s runoff election, with investors dealing with the twin shock of Lula’s improbable win and Flávio Bolsonaro’s calls for the vote to be annulled.

The European Union is planning to use safeguard measures to cut imports of products from sectors including chemicals, furniture and machinery from China, according to people familiar with the matter.

The Opening Trade has everything you need to know as markets open across Europe. With analysis you won’t find anywhere else, we break down the biggest stories of the day and speak to top guests who have skin in the game. Hosted by Anna Edwards, Guy Johnson and Tom Mackenzie.

Chapters:
00:00:00 – Bloomberg’s “The Opening Trade” Begins
00:01:39 – Lula’s Shock Brazil Election Victory
00:04:02 – Oil Falls Despite Trump’s Iran Rhetoric
00:05:41 – ECB, Fed and BOJ Decisions Ahead
00:06:21 – Massive Week for Tech and AI Credit
00:08:32 – What to Watch
00:11:28 – SpaceX’s $40 Billion Debt Deal, Central Banks and Hawkish Holds
00:15:07 – DZ Bank’s Sonja Marten on ECB Faces France and Inflation Risks, UK, Brexit and the Pound, Is AI in a Bubble
00:21:52 – Need to Know
00:25:40 – Bank of America’s Francisco Blanch on European Gas Hits Highest Since 2022, Europe’s Winter Gas Price Risk, Russia, Ukraine and the Diesel Market
00:39:23 – MLIV: Assessing the Market Reaction to Lula, Tech Earnings and AI Investment Risks
00:42:44 – European Stocks to Watch
00:48:03 – European Markets Open
00:51:54 – Jupiter Asset Management CIO Piers Hillier on Markets and Central Banks, France’s Fiscal and Bond Market Risks, Energy Prices and Portfolio Strategy
00:58:00 – Jupiter Asset Management CIO Piers Hillier on Investing in Latin America After Lula’s Win
01:05:12 – Roche Lung Cancer Drug Results
01:06:28 – SpaceX, Neo-Clouds and AI Debt
01:07:41 – Big Tech Earnings and AI Capex
01:09:45 – Brazil ETF Plunges After Lula Victory
01:14:48 – Need to Know: Iran, AI Productivity and Brazil
01:16:14 – Breaking News: EU-China Trade Tensions
01:17:10 – Societe Generale’s Phoenix Kalen on Brazil’s Election Shock and Market Outlook, Lula, Trump and US-Brazil Relations
01:26:10 – PIMCO’s Rupert Harrison on UK Budget Preview, Could the UK Hold an Early Election, Could the UK Move Closer to the EU
01:32:13 – The Busy Week Ahead
01:34:13 – Fed and ECB Rate Outlook
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The Uniquely American Experience of Redrawing Political Maps #election

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A gamble on re-districting ahead of the US midterm elections may not pay off for Republicans, who redrew more than a dozen congressional districts across the country hoping to pick up more seats in Congress. Bloomberg’s Josh Wingrove joins David Gura on the Big Take podcast to explain.
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Democratic Wave in House Looks Likely, Cook’s Covey Says

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Erin Covey of the Cook Political Report breaks down the shifting midterm elections battleground map, projecting a potential Democratic pickup of 12 to 25 seats to retake the House majority. Speaking on Bloomberg Television, Covey explains how President Donald Trump’s “underwater” approval ratings in deep-red territory are dragging down Republican incumbents.
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Wall Street Sees an Ominous Sign in Bond Market’s Latest Selloff

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It’s one of the least understood signals in the fixed-income world, but lately, everyone on Wall Street is abuzz about what it means as it reasserts itself in the market. Bloomberg’s Ye Xie explains.
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Midterm Fight Comes Down to the Final Days

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Bloomberg Balance of Power co-host Joe Mathieu joins Bloomberg This Weekend to break down the final days of campaigning before the midterms, including President Donald Trump’s late push and the House and Senate races that could determine control of Congress.
——–
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