Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.
Speaker 2: Good morning.
Speaker 3: I'm Nathan Hager and I'm Lisa Matteo. Here are the
Speaker 3: top stories we're following today.
Speaker 4: Lisa, we begin with a preliminary deal between the US
Speaker 4: and China. The two countries have agreed on a framework
Speaker 4: for how to implement the consensus they reached in a
Speaker 4: prior round of trade talks in Geneva. The framework includes
Speaker 4: China's pledge to speed up shipments of rare earth metals
Speaker 4: and the US easing some of its export controls. Here's
Speaker 4: Commerce Secretary Howard Lutnik, the two.
Speaker 5: Largest economies in the world have reached a handshake, right
Speaker 5: for a framework.
Speaker 2: We're going to start to implement that framework upon.
Speaker 5: The approval of President Trump, and the Chinese will get
Speaker 5: the president cheese approval, and that's the process. So once
Speaker 5: the President's approve it, we will then seek to implement it.
Speaker 4: Commerce Secretary Howard Lutnik says the two sides negotiated for
Speaker 4: more than twenty hours in London. The deal could still
Speaker 4: be rejected by Presidents Trump and Sheet. Many issues remain unresolved,
Speaker 4: including China's trade surplus with the US and concerns over
Speaker 4: dumping goods on US markets.
Speaker 3: Meanwhile, Nathan Bloomberg News has learned the European Union believes
Speaker 3: trade negotiations with the US will extend beyond Donald Trump's
Speaker 3: July ninth deadline. The date marks the end of President's
Speaker 3: ninety day pause on most global tariffs. After that point,
Speaker 3: US charges will increase dress drastically for many nations, with
Speaker 3: EU facing a fifty percent levy if a deal can't
Speaker 3: be struck and no extension is offered.
Speaker 4: And Lisa, there is a legal victory for the president
Speaker 4: on the trade front. A court has ruled that the
Speaker 4: President can continue enforcing his global tariffs. The US Court
Speaker 4: of Appeals for the Federal Circuit extended an earlier reprieve
Speaker 4: for the Trump administration, which is challenging a lower court
Speaker 4: ruling that blocked the tariffs. Arguments are scheduled for July
Speaker 4: thirty first.
Speaker 3: Well, now to the latest on the unrest in Los Angeles.
Speaker 3: The city imposed a curfew last night in a stretch
Speaker 3: of downtown that's seen the highest tensions over immigration rates.
Speaker 3: Almost three hundred and eighty people have been arrested across
Speaker 3: LA since the weekend, and clashes between protesters and law enforcement.
Speaker 3: But after President Trump authorized the deployment of seven hundred
Speaker 3: Marines and up to four thousand National Guard troops into
Speaker 3: the city, California Governor Gavin Newsom is sounding a warning.
Speaker 6: California maybe first, but it clearly will not end here.
Speaker 6: Other states are next. Democracy is next. Democracy is under
Speaker 6: assault before our eyes. This moment we have feared has arrived.
Speaker 3: In a televised speech, Governor Gavin Newsom said ICE agents
Speaker 3: have been jumping out of unmarked vans and detaining people
Speaker 3: in heavily Latino neighborhoods. The Trump administration has said the
Speaker 3: conditions in LA are spiraling and federal forces are needed
Speaker 3: to support immigration agents and restore order.
Speaker 2: And other political news, Lisa.
Speaker 4: Two winners have emerged in the race to be the
Speaker 4: next governor of New Jersey, and we get the very
Speaker 4: latest on that from Bloomberg's John Tucker, John Man, Good
Speaker 4: Morning Nathan.
Speaker 7: Republican Jack Chitarelli and Democratic Congresswoman Minkey Cheryl won their
Speaker 7: primary elections, Cheryl emerging from a crowded field on the
Speaker 7: strength of her background as a Navy pilot and former prosecutor.
Speaker 7: In her victory speech, the fifty three year old Cheryl
Speaker 7: criticized Chittarelli as a lackey of Donald Trump and invoked
Speaker 7: New Jersey's role in the American Revolution.
Speaker 2: We are in.
Speaker 8: An American crisis, but not in a war for independence,
Speaker 8: in a fight for a future, to fight for justice,
Speaker 8: for liberty, for opportunity, and for prosperity.
Speaker 7: All the sixty three year old Chittarelli, a former state
Speaker 7: lawmaker and small businessman, wasn't shy about his affinity with
Speaker 7: the president.
Speaker 9: Add to our most well known part time New Jersey resident,
Speaker 9: who honored me with his endorsement and strong support.
Speaker 7: Thank you, President Donald J. Trump thirty four percent of
Speaker 7: the vote. Her closest competitor was Newark Mayor ros Barrocka
Speaker 7: with twenty percent. Chittarelli had sixty eight percent, compared to
Speaker 7: his closest competitor, Bill Spadia, who had twenty two percent.
Speaker 7: New Jersey has been reliably democratic in senate and presidential
Speaker 7: con that it's a can't contest for decades, but the
Speaker 7: odd year races for governor had tended to swing back
Speaker 7: and forth. New Jersey and Virginia the only states that
Speaker 7: hold races for governor the year after a presidential election,
Speaker 7: and results are often seen as an early barometer of
Speaker 7: voter sentiment ahead of next year's congressional midterm. On John
Speaker 7: Tucker Bloomberg.
Speaker 3: Radio, all right, thanks for that, John Well. The debate
Speaker 3: continues on Capitol Hill on President Trump's three trillion dollar
Speaker 3: tax and spending cut bill. Senate Majority Leader John Thune
Speaker 3: says Republicans will deliver on the president's campaign promises to
Speaker 3: end taxes on tips, overtime, social security, and auto loans.
Speaker 3: House Ways and Means Chairman Jason Smith says any bill
Speaker 3: that doesn't would be dead on arrival.
Speaker 10: Tax on tips, no tax on overtime. These are items
Speaker 10: that the President spoke at every one of his rallies,
Speaker 10: and seventy seven million people voted for him. The House
Speaker 10: delivered on it. The Senate will deliver on it as well.
Speaker 3: House Ways and Means chair Jason Smith spoke on Bloomberg's
Speaker 3: Balance of Power. Meantime, the House Rules Committee is moving
Speaker 3: ahead which changes to make the bill comply with Senate
Speaker 3: budget rules. They include stripping out language targeting an energy
Speaker 3: assistance program, medicaid provisions in the Social Security Act, and
Speaker 3: a small amount of new Pentagon funds.
Speaker 2: Of course, as you remember Lisa.
Speaker 4: Disagreements over the text cut bill led to a major
Speaker 4: falling out between President Trump and Elon Musk, now the
Speaker 4: world's richest man. Maybe looking to patch things up, Let's
Speaker 4: get that story from Bloomberg's Kimberly Adams and.
Speaker 11: Posting on X in the middle of the night, the
Speaker 11: billionaires said, quote, I regret some of my posts about
Speaker 11: President Trump last week.
Speaker 2: They went too far.
Speaker 11: Musk had served as a close advisor and confidant to
Speaker 11: the President until a bitter public falling out last week.
Speaker 11: The dispute, which was triggered by Musk's opposition to the
Speaker 11: tax cut bill Trump is pushing through Congress, posed a
Speaker 11: threat to Musk's wealth when the President raised the prospect
Speaker 11: of retaliating by cutting off his government contracts. Musk had
Speaker 11: riled Trump by claiming credit for his election victory, endorsing
Speaker 11: his impeachment, and even suggesting the President was implicated in
Speaker 11: the sex crimes of Jeffrey Epstein, Kimberley Adams, Bloomberg Radio.
Speaker 3: Thank you, Kimberly. Meanwhile, Elon Musk space company SpaceX is
Speaker 3: calling off a mission that was supposed to take off today.
Speaker 3: Four private astronauts, including the first Indian in space in
Speaker 3: more than forty years, were scheduled to lift off to
Speaker 3: the International Space Station with NASA and Axiom Space Well.
Speaker 3: Now the launch is being delayed to fix a liquid
Speaker 3: oxygen leak that was found during inspections of the Falcon
Speaker 3: nine rocket. SpaceX says a new launch date for Axium
Speaker 3: Mission four will be announced once the repairs are complete.
Speaker 2: Hik Ker on Earthly.
Speaker 4: So let's turn to the markets, and the econo I
Speaker 4: mean futures are a touch lower this morning.
Speaker 2: Is investors a way to key reading on inflation?
Speaker 4: At eight thirty am Wall Street time, we get the
Speaker 4: May Consumer Price Index and we get a preview now
Speaker 4: from Bloomberg's Michael McKee.
Speaker 12: Economists are certain that Trump import tax will push up inflation.
Speaker 12: What they don't know is when, by how much and
Speaker 12: for how long. Today's data should offer a first clue.
Speaker 12: The consensus is the first inflation waves could be lapping
Speaker 12: at the shore. Prices for imported goods like furnishing, apparel
Speaker 12: and electronics and for used cars are expected to rise,
Speaker 12: and that should push headline and core CPI up for
Speaker 12: the first time since January. How much they rise, we'll
Speaker 12: set the tone on Wall Street, although it will take
Speaker 12: a few more months data for the FED to decide
Speaker 12: whether there is a price problem. Michael McKee, Bloomberg Radio.
Speaker 3: Thanks Mike. Meanwhile, a growing course of advisors inside and
Speaker 3: outside the Trump administration are pushing for a familiar name
Speaker 3: to succeed Jerome Powell as FED chair.
Speaker 2: US Treasury Secretary.
Speaker 3: Scott Besson, Bloomberg's Valery Titel says in Ves would likely
Speaker 3: consider best in a safe choice to succeed Powell, but.
Speaker 13: Be seen as very loyal to Trump, and we know
Speaker 13: that Trump wants these FED cuts sooner rather than later,
Speaker 13: So perhaps if he does emerge as a clear front runner,
Speaker 13: the market might take that very dubbishly.
Speaker 3: Bloomberg's Valery Tititel ads at President Trump said Friday he
Speaker 3: would name a successor quote very soon. J Powell's term
Speaker 3: as FED chair ends May twenty six.
Speaker 4: In company news, Lisa General Motors is making a big
Speaker 4: move in the US to help manage President Trump's tariffs.
Speaker 4: GM plans to invest four billion dollars in US plants
Speaker 4: over the next two years to boost output of some
Speaker 4: of its top selling gas powered vehicles. GM says the
Speaker 4: investments will allow it to produce more than two million
Speaker 4: vehicles in the US each year, reduce its reliance on
Speaker 4: Mexican factories, and add between three to four thousand US
Speaker 4: jobs and.
Speaker 3: A record for Nintendo. The company says it's sold three
Speaker 3: and a half million plus units of the Switch to
Speaker 3: in just four days. Nintendo has already sold more units
Speaker 3: than the original, which did in its first month in
Speaker 3: twenty seventeen, and it's on track to meet its target
Speaker 3: of selling fifteen million units by March next year. Time
Speaker 3: now for a look at some of the other stories
Speaker 3: making news in New York and around the world. For that,
Speaker 3: we're joined by Bloomberg's Michael Barr.
Speaker 14: Michael, thank you very much. Lisa Representative Lamonica mcgiver has
Speaker 14: been indicted on federal charges alleging she assaulted and interfered
Speaker 14: with immigration officers during a skirmish outside of New Jersey
Speaker 14: detention center. Mcgiver has disputed the allegations as baseless. The
Speaker 14: skirmish happened last month as Newark's mayor was arrested after
Speaker 14: trying to join mcgiver and two fellow Democratic representatives who
Speaker 14: said they went to conduct congressional oversight at Delaney Hall.
Speaker 14: Police bodycam video shows mcgiver's elbows pushing into an officer,
Speaker 14: but it is not clear from the video whether that
Speaker 14: contact was intentional. Employees walked out at the CDC Tuesday,
Speaker 14: one day after Health and Human Services Secretary Robert F.
Speaker 14: Kennedy Junior removed all seventeen sitting members of the Centers
Speaker 14: for Disease Control and Prevention's Vaccine Advisory Committee. Some experts
Speaker 14: are concerned during this could backfire as the flu and
Speaker 14: cold season rolls around in the fall. Emergency medicine physician
Speaker 14: doctor Darien Sutton.
Speaker 15: In the short term, there's typically nothing that is significantly changing,
Speaker 15: and typically the advisory committee makes recommendations that then leads
Speaker 15: to the approval by the Health and Human Services Secretary
Speaker 15: and then, inevitably, vaccine companies will typically cover that vaccine
Speaker 15: and provide coverage and access. So we have to wait
Speaker 15: and see how these changes will take effect in the fall,
Speaker 15: especially with the upcoming flu season.
Speaker 14: Doctor Sutton spoke to ABC. Austria has declared a three
Speaker 14: day period of national mourning following a massacre at a
Speaker 14: school in the city of Gratz. Police say investigators found
Speaker 14: a good bind letter and a non functional pipe bomb
Speaker 14: when they search the home of a one year old
Speaker 14: man who opened fire at his former school, killing nine
Speaker 14: teenagers and a teacher before taking his own life. The
Speaker 14: Air Force has reduced its request to Congress for f
Speaker 14: thirty fives from forty eight to twenty four. It's a
Speaker 14: significant cut that may reflect the Defense Secretary's plan to
Speaker 14: reduce US military spending by eight percent over the next
Speaker 14: five years. Global News twenty four hours a day and
Speaker 14: whenever you want it with the Bloomberg News. Now Now
Speaker 14: Michael Barne, this is Bloomberg Lease.
Speaker 3: Thank you, Michael. Time now for the Bloomberg Sports Update.
Speaker 3: For that we bring in John stash Our. Good morning John,
Speaker 3: Good morning Lisa.
Speaker 16: The Yankees were coming off Sundays lost to Boss to
Speaker 16: the game where Aaron Judge had two run homers in
Speaker 16: the first and ninth innings in Kansas City. He came
Speaker 16: up again with a man on in the first.
Speaker 9: Swigging a deep blast way on into my field. Judge, chance, stop,
Speaker 9: loot stop, why money to run jackular first nothing again, unbelievable.
Speaker 16: Yes, Network, the call they got out the tape measure
Speaker 16: four hundred and sixty nine feet for Judges twenty fourth
Speaker 16: on run the ball landed on the roof of the
Speaker 16: Royals Hall of Fame. Austin Wells had a three run shot,
Speaker 16: then a two run double. Yankees all over the Royals
Speaker 16: ten to two. Max Freed is now nine and one.
Speaker 16: At City Field, Mets trailed Washington for two in the
Speaker 16: eighth inny Uan Soto, who had homered earlier with an
Speaker 16: RBI double, and then Pete Alonzo drove him in to
Speaker 16: tie the game, and then Jeff McNeil a walk off
Speaker 16: hit tenth inning, Mets won five to four. They'd won
Speaker 16: thirteen of the last sixteen. The Giants have won six
Speaker 16: in a row, and all by one run. They scored
Speaker 16: four to the ninth to beat Colorado Red Sox, a
Speaker 16: three to one win over Tampa Bay Thunder and Pacers
Speaker 16: tied at one. Game three the NBA Finals tonight at
Speaker 16: Indianapolis one. It's worth Indiana zero to three in Game threes,
Speaker 16: thirteen and two in all the other games. The Knick
Speaker 16: search for a new coach had them reportedly asked for
Speaker 16: permission to interview Houston coach Jimmy Udoka and Minnesota's Chris Finch,
Speaker 16: and both times permission denied. Running back JK Dobbins signed
Speaker 16: with Denver, played previously with the Ravens and Chargers. First
Speaker 16: look at Aaron Rodgers in a Steelers uniform and after
Speaker 16: his mini camp workout, he was asked why he chose
Speaker 16: to play for Pittsburgh.
Speaker 17: It starts with Mike Tummlin and then I've been a
Speaker 17: fan of his for a long time. There's a few
Speaker 17: iconic franchises in the NFL. I played for one of
Speaker 17: them for eighteen years. This is another one of those.
Speaker 17: There's something special about, obviously this area. So many great
Speaker 17: quarterbacks are from Pittsburgh.
Speaker 16: The forty one year old lifelong bachelor, Rogers revealed he
Speaker 16: recently got.
Speaker 2: Married John Stashawi, Bloomberg Sports.
Speaker 3: Lisa Henry, all right, thank you, John. Taking a look
Speaker 3: at the markets once again, future still following. We have
Speaker 3: NAZAC futures down to ten percent, twenty seven points down,
Speaker 3: futures down ten percent, sixty nine points, a SP futures
Speaker 3: falling a ten that for percent or nine points. The
Speaker 3: two year yield four point zero two percent, that is
Speaker 3: little chains and the yield on the tenure four point
Speaker 3: four to eight percent, and that's up one basis.
Speaker 1: Point coast on Bloomberg radio nationwide on Sirius Exam and
Speaker 1: around the world on Bloomberg dot Com and the Bloomberg
Speaker 1: Business app. This is Bloomberg Daybreak.
Speaker 2: Good morning, I'm Nathan Hager.
Speaker 4: It took two days of marathon talks, but the US
Speaker 4: and China have reached an agreement to restart flows of
Speaker 4: sensitive goods that they agreed to start in Geneva just
Speaker 4: a month ago. Commerce Secretary Howard Lutnix spoke after the
Speaker 4: negotiations wrapped up in London last night.
Speaker 5: First we had to get sort of the negativity out,
Speaker 5: and now we can go forward to try to do
Speaker 5: positive trade, growing trade and beneficial to both China and
Speaker 5: to the United States.
Speaker 4: From now, Commerce Secretary Howard Lutnix, speaking in London overnight
Speaker 4: this morning. We're joined by Bloomberg New Senior Editor Bill Ferries. So, Bill,
Speaker 4: is this kind of back to where we started from
Speaker 4: for the US and China?
Speaker 2: Good morning, Hey, Good morning, Nathan, Thanks for having me.
Speaker 18: It is a little bit It depends on how far
Speaker 18: you want to roll the calendar back, but it is,
Speaker 18: you know, roughly back to where the US was at
Speaker 18: least a month ago when Scott Bessen and his Chinese
Speaker 18: counterpart reached a deal in Geneva that was supposed to
Speaker 18: get trade talks on the right track. It didn't really
Speaker 18: work out that way, but the two sides had two
Speaker 18: intensive days there in London and they really did seem
Speaker 18: to find an agreement. We're still waiting for the details
Speaker 18: of what was in that accord, but Howard Lutnick, when
Speaker 18: he spoke to reporters afterwards, made it clear that one
Speaker 18: key issue was resolved, at least from the US perspective,
Speaker 18: and that is the export of these rare earth magnets
Speaker 18: that are so critical to businesses from the defense industry
Speaker 18: to the auto industry. And it's really believed that that
Speaker 18: is what put the pinch on the US to try
Speaker 18: to get a deal done quickly.
Speaker 4: Now you look at the market reaction this morning, a
Speaker 4: modest dip in futures, with some of those details still
Speaker 4: waiting to be released here, particularly in terms of the
Speaker 4: export controls that the US had put on China. There's
Speaker 4: still a lot of questions to be answered there.
Speaker 18: Yeah, before this deal was reached, there was a lot
Speaker 18: of talk about the US potentially lifting its restrictions on
Speaker 18: things like chip software design. Chip software design software and
Speaker 18: jet part jet engine parts and things like that. It's
Speaker 18: not clear what the US conceded in this side. We
Speaker 18: have seen Asian stocks, particularly some of the consumer electronics stuff,
Speaker 18: doing quite well today. It's a bit of a contrast
Speaker 18: with the reaction in the US market, which, as you said,
Speaker 18: has been a little bit of a little bit down
Speaker 18: in terms of the futures.
Speaker 4: So while we're waiting for some of those details to
Speaker 4: come out, we've got negotiations going on on multiple fronts,
Speaker 4: including with the European Union. It sounds like they're trying
Speaker 4: to reach a framework deal of their own before the
Speaker 4: July ninth deadline.
Speaker 18: Yeah, it sounds like they are looking at potentially getting
Speaker 18: an extension already in those talks that you know that
Speaker 18: July ninth deadline is just under a month away, and
Speaker 18: they are hoping to get some kind of a framework agreement.
Speaker 18: But that would allow kind of talks to continue without
Speaker 18: without those tariffs kicking back in those suspended tariffs, So
Speaker 18: that's something, you know, It is a sign, I suppose
Speaker 18: of progress, but also I think just a recognition that
Speaker 18: you're not going to be able to work through all
Speaker 18: this in the span of just another thirty days or so.
Speaker 4: All right, turning from the trade talks to I guess
Speaker 4: domestic politics, the situation in Los Angeles continues to unfold.
Speaker 4: There's an overnight curfew, and the war of words between
Speaker 4: President Trump and California's governor just is not letting up.
Speaker 2: Bill that's right.
Speaker 18: I mean, it was a little bit of an even
Speaker 18: quieter day and night compared to really compared to the
Speaker 18: weekend when you had all those cars getting burned. Things
Speaker 18: have calmed down a bit on the streets. The rhetoric
Speaker 18: has not really calmed down at all. There is a
Speaker 18: curfew in about a one square mile section of Los Angeles,
Speaker 18: fairly confined area where a lot of businesses were attacked
Speaker 18: or looted overnight, according to that's according to Mayor Karen
Speaker 18: Bass And there are now up to four thousand National
Speaker 18: Guard troops and seven hundred Marines who have been authorized
Speaker 18: to deploy to the city. California Governor Gavin Newsom getting
Speaker 18: on the air today addressing his state, saying that California
Speaker 18: may be the first to face these policies from the administration,
Speaker 18: but saying it clearly won't be the last, and so
Speaker 18: that rhetoric is continuing to escalate, even as the situation
Speaker 18: on the streets has perhaps quieted a little bit.
Speaker 4: Our last minute, while we haven't really been talking much
Speaker 4: about the war of wards between President Trump and Elon
Speaker 4: Musk with what's been happening in La but Elon Musk
Speaker 4: looks like he's trying to dial things back there.
Speaker 12: Yeah.
Speaker 18: Elon Musk is not, I don't think, known for making
Speaker 18: a lot of apologies, saying that he regrets some of
Speaker 18: the posts he put up about Donald Trump last week,
Speaker 18: saying that they went too far. Of course, you you'll
Speaker 18: remember that he said that there were mentions of Donald
Speaker 18: Trump in the Epstein files and he said have a
Speaker 18: nice day DJT after posting that. He never provided any
Speaker 18: evidence for it, but it was seen as a particularly
Speaker 18: low blow against the president, and obviously, you know, part
Speaker 18: of the bigger meltdown we've seen these two, these two
Speaker 18: leaders have.
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Speaker 3: And I'm Lisa Matteo. Join us again tomorrow morning for
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Speaker 3: here on Bloomberg Daybreak