Good morning. China offers the hint of a potential thaw in trade tensions. Jobs data will offer the first major look at the labor market since expansive tariffs were imposed. And Uncle Sam wants YOU. Listen to the day’s top stories.

You rang? China is assessing the possibility of trade talks with the US, the first sign since Donald Trump hiked tariffs last month that negotiations could begin between the two countries. China said it noted senior US officials repeatedly expressing their willingness to talk to Beijing, and urged American officials to show “sincerity.”

A key valuation metric touted by ace investor Warren Buffett is signaling that equities are relatively cheap. US stocks are set to grind higher today for a ninth straight session. Bill Gross, the erstwhile Bond King, isn’t convinced. In a social media post, he said “most stocks, even tech stocks, are in bear markets.”

Big Tech added to concerns about tariffs, with Apple warning its costs will jump $900 million this quarter on the policy changes. It’s planning to source more than 19 billion chips from the US this year, part of a supply chain shift to lessen its reliance on China. Amazon said it’s bracing for a tougher business climate, too.

It’s jobs day—and US nonfarm payrolls data will offer the first look at the labor market since the Trump administration imposed expansive punitive tariffs. Hiring is seen slowing to a still-solid 138,000 in April after blowing away expectations in March, while the unemployment rate is anticipated to hold at 4.2%. Bank of America’s Michael Hartnett said payrolls will be key for sentiment.

Trump is asking Congress for a 23% domestic spending cut and a 13% boost in national security spending in his 2026 budget, due later today. Known as the “skinny budget” for its lack of detail, it’ll prioritize a missile defense project and border security. Separately, he signed an executive order ending federal funding of NPR and PBS, a longtime goal of some Republicans who’ve accused the media outlets of bias.

Bloomberg Tech: Join top tech decisionmakers and influencers June 4-5 in San Francisco. Decode technology’s evolving role across business, culture and healthcare as we discuss the advances transforming industries and how they impact society. Learn more.

Deep Dive: Factory Machinations

The Ford Rouge Electric Vehicle Center in Dearborn, Michigan. Photographer: Emily Elconin/Bloomberg

Factories key to the US’s industrial ambitions are asking for tariff relief to import machinery from China they say they need to set up or expand their US manufacturing facilities.

• In theory, these firms would eventually offer precisely the production boost that Trump has billed as the ultimate goal of his tariffs. In the meantime, they’re being put off by increased costs and economic uncertainty.
• More than 180 companies have filed more than 1,100 individual requests in recent months for tariff exclusions, pleading their case for Chinese-made machinery.
• Applicants range from the likes of Ford and Hitachi to relative minnows such as an Ohio company that sells industrial sewing machines used to make leather items, including custom saddles for jockeys in this weekend’s Kentucky Derby.

The Big Take

A SpaceX Falcon 9 rocket with a payload of 20 Starlink satellites in the evening sky above Lawndale, California, on June 18, 2024.
Photographer: Patrick T. Fallon/AFP/Getty Images

Decomissioned satellites, which vaporize when they plunge through the atmosphere, are threatening the Earth’s protective ozone layer. Last year, about 1,000 of them reentered, or about three a day. By 2035, the daily rate is estimated to rise as high as 50.

Opinion

Markets can’t see a recession through the tariffs, John Authers writes. In all this confusion, a clear-cut indicator—the ISM manufacturing index—isn’t ringing the alarm bells it should.

Before You Go

A wax replica of Uncle Sam at Madame Tussauds in Washington, DC.  Photographer: Paul Morigi/Getty Images North America

Uncle Sam wants you—especially if you’re a disillusioned Chinese official who feels like sharing top secrets. The CIA released two videos aimed at recruiting such potential sources, part of a broader strategy to boost intelligence collection on China.