♪ >> welcome to "bloomberg markets." i'm vonnie quinn. it's been a topsy-turvy day at the market. we got the michigan data which sends stocks lower. and now we've been getting headlines out of a meeting with president donald trump and the japanese prime minister talking about reciprocating tariffs next week from the president. and also lots more headlines including about nippon steel and president trump's continued opposition to nippon steel's

proposed purchase of u.s. steel. let's now get to the president of the united states, donald trump. vonnie: from just a moment and for a moment, can i just let you know that the yen has been weakening. it's trading 15159. that is not on one particular country. that is a generalized statement from the president. michael mckee joining us. we have the university of michigan inflation expectations which spoiled the market. >> there were some good and some

bad come and ugly. if you want the good, 143,000 jobs isn't great created by -- they revised up december 307,000. so that is certainly good. and we saw the announcement rate go down. we saw average hourly earnings rise by a stronger than expected half a percentage point. and then you've got the bad from the university of michigan. the university of michigan sentiment index dropped constantly. and the ugly ills the university of michigan inflation number. up a full percentage point to 4.3% from 3.3%. looking at the possibility of tariffs, vonnie, and that scared people. the director of surveys for the university of michigan said they had lot of comments from people about the tariffs and how that might change people's financial

situation going forward. vonnie: particularly in that one year reading. five to 10 years out, maybe not worried. but definitely worried the immediate term. revision. there's a lot of noise here but a good signal in general. the revisions weren't as bad or negative as we thought but then you can't believe this data, according to nec. >> politics is the way -- what i would suggest he's playing here. you can believe the data. it's the best data that we have. and it's done every year, at least these revisions. they go back and look at new data that has come in and they reincorporate it into the numbers to give us a more accurate picture of what happened in the labor force. there was a feeling that we might be down 800,000 jobs over the year that it covers. but it turned out to be over 500,000. so not as bad as expected. still high, but pretty much the same as we saw in 2019 when

donald trump was in the white house. so i'm not sure what kevin's talking about there as a dismal situation for the economy. but overall, the market's in good shape. vonnie: ultimately, none of this really changes the equation for the fed. it gives the fed more reason to pause. >> inflation expectation numbers tell the fed that they've got to keep an eye on that and keeping interest rates unchanged will help keep inflation moving down. and at the same time, they don't have to react to favor the economy because the labor market is strong. unemployment is low. vonnie: all right. michael mckee, thank you so much. keeping unhonest in all of the economic data of the day. coming up, inflation threats going to show in the data. university of michigan consumer sentiment lower than expected. we will continue to talk about that. and also all of these headlines coming out of the white house. this is bloomberg. ♪

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vonnie: this is "bloomberg markets" i'm vonnie quinn. let's highlight a couple of individual equity movers now. natalia joins us now. >> let's start with uber. the stock is up by 9%. that's after ackman said that his -- 30.3 shares of uber and he said this is one of the highest quality companies in the world which can still be purchased at massive discount. however, the plays report was slightly disappointing for analysts. we saw weaker than expected for the first quarter. the next stock is amazon. it's currently down by almost

4%. outlook was weaker than expected the company said it's facing some capacity constrains related to chip supply as well as power capacity. however, c.e.o. said that the second half of 2022 would be slightly better. and then shares are down by the most on record after the company according to people familiar with the meta filed for a bankruptcy case. vonnie: let's go to the white house for that playback with the president. >> are you signing a deal on that today? pres. trump: i will be announcing that next week so that we're treated evenly with other countries. we don't want any more any less. so i'll be announcing that next week. and many other things having to do not even with trade but other things. but i'll be talking about

rereciprocal trade. pretty simple. it affecting everybody. yeah, reciprocal. >> [speaking another language] [speaking japanese] >> irunderstand that the key point in this week is to bank that for mutually beneficial. that means that would benefit the development of the united states as well as the development of japan.

and i do hope that whatever majors and actions shoots meet this criteria, meaning that serving the interest of both countries. i understand that we are going to have further discussion. pres. trump: that's correct. >> are there any specific concessions that you will be asking from japan that you can share? pres. trump: i will be having. it will be very easy for japan. we have a fantastic relationship. i don't think we'll have any problem whatsoever. they want fairness also. >> [speaking another language] [speaking japanese] >> do you have a reaction to the new "time" magazine cover that has elon musk sitting behind your resolute desk? pres. trump: no. >> [speaking japanese]

pres. trump: is "time" magazine still in business? i didn't know that. [laughter] elon is doing a great job. he's finding tremendous fraud and corruption in ways. you see it with the u.s. but even more so with other agencies and other parts of government. he's got a staff that's fantastic. he's wanted to be able toes do this for a long time, and everybody else knew it was existent. but never so much when you look at u.s.a. i.d. that's a fraud. the whole thing is a fraud. very little -- very little being put to good use. every single line that i look at in terms of events and transactions is either corrupt or ridiculous. and we're going to be doing that through our government. and i think we're going to be very close to balancing budgets for the first time in many years. we're going to have very close

in addition to moneys coming in from tariffs, etc., etc., but no, he's doing a very good job. i'm very happy with him. >> will you put elon musk up in the podium for us to ask him some questions? pres. trump: oh, sure. he's not shy. elon's not shy. >> any timetable for a takeover from gaza? pres. trump: no, it's been very well received where the united states would view it as real estate transaction where we'll ban investor in that part of the world. and no rush to do anything. we wouldn't need anybody there. it would be supplied and given to us by israel. they'll watch it in terms of security. we're not talking about boots on the ground or anything but i think we all -- the fact that we're there, that we have an investment there. i think would go a long way to creating peace. we don't want to see everybody move back and then move out in

10 years. this has been going on for 50 years, much more than that. we just want to see stability. that would be having us have that particular piece and that particular location. i think would show great stability and would lead to great stability in the area for very little money, very little price. and we wouldn't need soldiers at all. that would be taken care of by others. and the investments are taken care by others as well. and for no investment -- i mean, virtually no investment whatsoever. it would bring stability to the area. and others can invest in it later on. but we're in no rush on. it's absolutely no rush. >> president trump, do you believe deepseek is a national security threat and how do you plan to collaborate on a.i.? pres. trump: on where? >> deepseek. do you believe it's a national security threat? pres. trump: no, it's a technology that's happening. it's actually -- i think we're going to benefit if it's correct

what's going on now that it'll be a lot pleasant expensive, the a.i. we're talking about, will be a lot less expensive. that's a good development and not a bad development. >> mr. president, on autospecifically in your first term, you try to their -- auto, is that -- pres. trump: auto tariff? yeah. pres. trump: sure, that's always on the table. that's a very big deal. we have case where is we don't apply autos and other countries do. >> will you meet with president zelenskyy next week? pres. trump: i will probably be meeting with president zelenskyy next week and i will probably be talking with president putin. i would like to see that war end. they're killing so many people. they're losing so many people on

a battlefield and mostly the battlefield. you have eight or 900,000 russian soldiers are dead and very badly wounded. and the same thing with ukraine. you have probably 700,000 ukraine. i believe those numbers aren't correct. i'd like to see it end just on a human basis. it's terrible what's going on. they have open fields with no protection. the only thing a bullet can hit is a human body. and a human body dies as soon as it gets hit. it would have never started if i was president. putin would not have started that war if i were president. and by the way, you wouldn't have an october 7 if i was president either. that mess would not have started. but no, i would very much like to to help out. one of the things we're looking at with president zelenskyy is

having this security of their -- vonnie: president donald trump speaking from the white house as he meets with the japanese prime minister. the markets selling off after those headlines came out that he's going to be announcing reciprocal tariffs necks week. he said it's going to be across the board. that sell-off moderating down and the nasdaq itself down 1%. we're going to turn it over now to bloomberg's texas bureau chief julie fine live in dallas for a special interview with fedex governor greg abbott. julie? >> government abbott, thank you so much for being with us. >> my pleasure. thank you, julie. >> i want to start with the news of the morning the president saying he will have some type of announcement on reciprocal tariffs in the coming days. now, he has paused tariffs for now on mexico and canada. bloomberg had a story earlier this week in lo rado, very concerned about these. are you concerned this will affect the texas economy?

>> not really. and there's a reason for that. that's because he had these tariff announcements during his first term as president and it didn't really impact the texas economy. the texas economy is the most powerful economy in the united states. and we're able to withstand all types of challenges. to be honest, i'm not really concerned about this. and we've seen as everybody observed and that is sometimes these tariffs are used strategically to achieve certain purposes like what happened with mexico and canada. and it worked out to the united states advantage that certain board security measures were taken by mexico as well as fentanyl issues with canada. so the united states is better now because of the use of tariffs and the ability to extract changes that are better for the country.

julie: you said that texas would offer military bases 4200 beds for troops as well as 4,000 jail cells. border crosses are down. what is your long-term plan for the state? gov. abbott: under president biden, texas needed to take extraordinary steps because we had more than 11 million people cross the border, more than during any president the history of the united states of america. and as a result, we built two military bases on the border and we're working with the trump administration to provide them holding facilities to detention facilities such as jail and prison cells as they apprehend people and prepare them for deportation. bottom line, texas is going to

be all in to assist the trump administration. but we have seen illegal crossings decrease to a trickle. here's what we need to see. we need to see the ongoing success by the trump administration at reducing illegal immigration in a sustainable way and that will help texas calibrate what our next actions will be. obviously, it should not be incumbent upon texas taxpayers or any state taxpayers that have to foot that bill. and as a result, that's why i've been working with members of congress and i'll be back next week to talk to them even more about ensuring that texas is going to be able to have the resources we need and a reimbursement for some of the costs we incurred to secure the border. julie: the newly formed texas stock exchange just submitted for approval. companies dual list in the new

york stock exchange and nasdaq. how might that be different from other dual listings? gov. abbott: so it may be similar to what's happened historically concerning dual listings. but here, we will see a trend change in stock markets the way we see a trend change in the economy. let's go back the year 2000, for example. new york city was still the home of finance at that time. and other states were larger than texas economically. these days, texas has the most powerful economy in the united states as well as we have more people moving here than any other state. we have the fastest growing financial sector in the united states. add to that, the way you could subdivide the united states into quadrants. if you look at the southeastern quadrants down to florida and back over to texas, that quadrant represents almost all of the positive g.d.p. growth in

the united states of america and as a result, there would be a kinship in that region for businesses that will be far more likely to be aligned with the stock exchange that we had in texas than up in new york. one last thing about that. and that is we need to ensure access to capital of oil and gas businesses that are unique and important to just not only the state of texas, but also to this entire region we think that with the growing financial expertise that's going to be taking place in dallas, in texas, as well as the growing economy in the southeastern quadrant, we're going to see a lot of businesses that are interested in localing here for access to capital. and know this. you've already seen this, julie. with regard to corporations. you've seen spacex move their incorporation from delaware to texas. we're seeing a lot of that take place across the board with bidses because they see texas as a business friendly state

especially the aftermath of a new law that now rival and in some businesses feel are superior to the business course in delaware. julie: president trump has a very broad education agenda. so do you. 33 states have some form of school choice. if it happens in texas, it would be the biggest. you tried to get this done for several sessions. this time around, do you think texas will have school choice at the end of the session? gov. abbott: i really do. and there's several reasons for it. one is as you know, but others may not. i campaign this last election cycle to ensure that we elect to the texas house representatives who are going to support school choice. and we were successful in that effort and now should have more than enough post in the texas house to get it passed. it passed the texas senate just this week. and so, we're on a pathway where it should get passed.

and know this. as you pointed out, school choice in one form or another kansas ises in more -- exists in more than 30 states. and there's not been a collapsing of the public school system. instead, the public school system gets more competitive and while at the very same time, giving the parents the ability to choose the school that's best for their child. julie: you were with the president earlier this week as he signs some executive orders, along the lines of the texas legislature, you have signed one as well regarding dei. that would be in public offices. there was a ban on dei in public universities. are you hearing any feedback? what are companies saying to you about this? gov. abbott: i think they are tired of the -- of dei. they want to be a success for their shareholders. and the way they can do that is

increase the internal investment without having to invest to social programs that may not be beneficial to the bottom line. and so, i will tell you -- i've heard nothing negative about it. i've heard many positive things about it. we need to get back to core value sets. but understand this also. and that is what dei programs often promote is discrimination. it's a violation of the u.s. constitution of the texas constitution of the civil rights laws. many dei programs do, they promote one race while not advancing others. and that violates the constitution of texas and federal laws. julie: in the very short time i have left with you, you touched on this earlier. elon musk arguably texas most well-known residents. what do you think of his influence right now? gov. abbott: listen, he's doing to the government sector what he's done the private sector. and he's going to have success

in the government sector like he has in the private sector. one thing we desperately need in the country. government has grown too large. one way is to do what elon is doing. and i think most americans are very proud of what he's accomplishing. julie: governor abbott, see you in austin soon. thanks so much for your time. gov. abbott: thank you. vonnie: and that is bloomberg's julie fine and we thank her very much as well. let's take a quick look at how these markets are shaping up as we head into the lunch time hour here on the east coast. after those comments from president trump and a mixed bag of economic data, you're seeing all but energy lower in the s&p 500. that's the only sector that is higher at the moment. the s&p 500 itself down .9%. crypto related stocks continue to rally. crypto topped $100,000 a coin

earlier on. it's below that now though. i want to mention the yen. it is trading off at 15556 after the president trump said he's not inclined to change his name about the u.s. deal nippon deal. ♪ more confidence... the answer is j.p. morgan wealth management

>> from the world of politics to the world of business. this is "balance of power." live from washington, d.c. >> welcome to "balance of power" on bloomberg tv and radio. i am kailey leinz live in washington where we have our eye on the white house as president trump sits down with the japanese prime minister. they are sent to hold a joint press conference shortly. donald trump extensive questions earlier so we will see how on time things are running. we will have more insight on it with the former u.s. ambassador to japan, rahm emanuel, this hour. we have to talk about the jobs report. we will get into it with a former economist at the labor department now with the heritage foundation. diana furchtgott-roth will be here, along with o