Global Stocks Recover Tariff Losses; Trump Visits Saudi Arabia | Bloomberg Daybreak

US-China Trade Relations Easing

• 📈 Global stocks have recovered losses from recent tariff announcements following a 90-day tariff rollback agreement between the US and China.
• 🤝 President Trump called the deal a "total reset" of the US-China relationship, aiming to avoid hurting China and de-escalate tensions.
• 💡 Experts note the de-escalation was necessary for both countries due to mutual economic dependencies.
• ✈️ As a concession, China has reportedly lifted its ban on airlines taking deliveries of Boeing planes.

US Treasury Secretary's International Engagements

• 🇸🇦 Treasury Secretary Scott Bessent is in Riyadh, Saudi Arabia, with President Trump, attending an investment forum.
• 🇪🇺 Bessent expressed that the EU faces a "collective action problem" hindering trade negotiations due to differing member state interests.
• 🌏 He also noted productive discussions with Japan, Indonesia, and a "very good proposal" from Taiwan.

Market Outlook and Economic Indicators

• 🚀 Goldman Sachs has raised its price target for the S&P 500, citing eased recession risks and tariff uncertainties, now predicting a 300-point gain.
• 📊 Investors are awaiting the April Consumer Price Index (CPI) report for inflation clues, with expectations of a strong increase.
• 🚗 While gasoline prices fell, increases in autos and consumer goods are anticipated, with larger impacts expected in May or June.

US Tax Legislation and Tourism Decline

• 💰 House Republicans have detailed a multi-trillion dollar tax cut bill aiming to reduce taxes and spending over a decade, including a raised state and local tax (SALT) cap.
• 🏛️ Some Republican lawmakers are pushing back on the proposed $30,000 SALT cap, deeming it insufficient.
• 📉 US tourism is projected to lose $12.5 billion in revenue by 2025, attributed to lingering COVID-19 requirements, a strong dollar, and "America First" rhetoric.

Other Key News

• 🎤 Testimony continues in the trial of Sean "Diddy" Combs, with prosecutors presenting surveillance video of alleged abuse.
• 🤝 Hamas has released the last American citizen held hostage in Gaza.
• 🩺 President Biden is undergoing evaluation for a small nodule discovered on his prostate.