Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: Can we begin with tensions flaring on Capitol Hill between
Speaker 3: President Trump and Senate Republicans. President went into lunch with
Speaker 3: members of his own party, upset over a vote in
Speaker 3: the Senate rebuking his war with Iran. The President refused
Speaker 3: to sign a bipartisan housing bill that Congress had just
Speaker 3: passed ahead of the meeting. Afterward, the President put a
Speaker 3: positive spin on it.
Speaker 4: I think we had a really great meeting, and we're
Speaker 4: very proud of the party. We like our leader, we
Speaker 4: like everybody really in the room. I don't like a
Speaker 4: few people, but that's okay. I think you know who
Speaker 4: they are.
Speaker 3: President Trump spoke to reporters on Capitol Hill after the
Speaker 3: launch Bloomberg. Stephen Dennis reports Republican Senator Bill Cassidy drew
Speaker 3: the President's anger for voting for the War Powers Resolution.
Speaker 5: The way Cassidy described it as Trump asked who could
Speaker 5: possibly have voted for this thing? And cassi said, do
Speaker 5: you want the real answer? And Trump said yes, And
Speaker 5: he said, well, you know, we haven't been briefed. You
Speaker 5: said this war was going to last four weeks. It's
Speaker 5: lasted four months. None of your original aims have been met, Bloomberg.
Speaker 3: Stephen Dennis reports Senator Cassidy got a White House briefing
Speaker 3: on Iran after the launch from Vice President Jade Vance.
Speaker 3: By the end of the day, Cassidy said he shouldn't
Speaker 3: have lost his cool.
Speaker 6: I lost my temperament. That's not appropriate. It's the Irish eat.
Speaker 3: Last night, Senator Cassidy and fellow Republican Ran Paul reversed
Speaker 3: their votes and rejected a separate war powers resolution. Paul
Speaker 3: posted on x that he voted president to give the
Speaker 3: president more space and leverage to negotiate a lasting piece
Speaker 3: Nathan All.
Speaker 2: This provided the backdrop as President Trump took to the
Speaker 2: National Mall for a rally marking America's two hundred and
Speaker 2: fiftieth anniversary tonight.
Speaker 7: As we stand on the edge of our two hundred
Speaker 7: and fiftieth year of independence, I am thrilled to declare
Speaker 7: that America is back.
Speaker 2: And the President used his speech to defend the Around War.
Speaker 7: For the first time in three thousand years, we are
Speaker 7: finally going to have peace in the Middle East.
Speaker 8: We're gonna have peace in the Middle East.
Speaker 7: Since your agreement, the stock market and your four oh
Speaker 7: one case are skyrocket upward, an oil price that are
Speaker 7: plummeting downward.
Speaker 9: Today it hit a new low.
Speaker 7: And the world is a much safer place.
Speaker 2: President Trump's speech kicked off a sixteen day Great American
Speaker 2: State Fair on the Mall. Several artists pulled out of
Speaker 2: the event, saying it was more political than they'd been
Speaker 2: led to believe, so the President said he'd headline the
Speaker 2: festivities himself well.
Speaker 3: Turning overseas, Karen, the European Union is signing off on
Speaker 3: its trade deal with the US. Let's go to London
Speaker 3: get the latest with Bloomberg's ewen pods. Good Morning, Ewan, Nathan,
Speaker 3: and Karen.
Speaker 10: It has taken almost a year of talks, but EU
Speaker 10: member states have finally approved the European Union's trade deal
Speaker 10: with the United States, under the terms that e will
Speaker 10: scrap levies on US industrial goods and some agricultural products
Speaker 10: in exchange for a fifteen percent tariff ceiling on its
Speaker 10: exports to the US. The agreements of the twenty seven
Speaker 10: member countries comes just nine days before President Trump's deadline
Speaker 10: good news for strained transatlantic relations, but plenty of disagreements remain,
Speaker 10: not least on issues including metals, tariffs, and tech regulation.
Speaker 10: In London, I'm youwing Pots.
Speaker 2: Bloomberg Radio Right New and thank you. The deal comes
Speaker 2: a day after NATO's Secretary General Mark Ruda met with
Speaker 2: President Trump in the Oval Office. He was trying to
Speaker 2: ease the President's anger over the reluctance of alliance and
Speaker 2: nations to help with the campaign against Iran. Rut had
Speaker 2: displayed posters highlighting how much more money NATO nations have
Speaker 2: spent on defense since Trump took office. After the meeting,
Speaker 2: Ruda spoke with Bloomberg's Balance of Power.
Speaker 8: But I think it's important is to be fair, and
Speaker 8: fairness dictates that this president's really doing a huge amount
Speaker 8: of work to get NATO Embeta shape. You had a
Speaker 8: big success last year, Indy hag with the five percent
Speaker 8: spending commitment.
Speaker 2: And NATO Secretary General Mark Rude told the Bloomberg's Balance
Speaker 2: of Power. President Trump is committed to the alliance and
Speaker 2: will play a critical role at a meeting of NATO
Speaker 2: leaders set for next month in Turkey. Catch the full
Speaker 2: conversation on our new video hub on Bloomberg dot Com
Speaker 2: and the Bloomberg Business app.
Speaker 3: Let's turn to markets now, Karen. The AI trade is
Speaker 3: back in play. Nasdaq futures are up more than two
Speaker 3: percent following earnings from Micron Technology. That stock is up
Speaker 3: sixteen and a half percent pre market. The largest US
Speaker 3: maker of computer memory chip says its revenue will be
Speaker 3: approximately fifty billion dollars in the fiscal fourth quarter. That's
Speaker 3: five zero and it's almost seven billion more than analyst estimated.
Speaker 3: Gene Munster is managing partner at Deepwater Asset Management.
Speaker 11: The street is start going to get more comfortable at
Speaker 11: growth rates for the hyperscalers and the broad capax of
Speaker 11: forty percent plus. And what that means is that these
Speaker 11: companies are going to continue to grow faster for longer
Speaker 11: than most investors expect. And despite all this skittishness within
Speaker 11: the market, this is just an over just a resounding
Speaker 11: endorsement that we are, in fact earlier than the most
Speaker 11: believe in the build up.
Speaker 3: It's Gene Unster of Deepwater Asset Management. Micron has also
Speaker 3: secured sixteen strategic customer agreements averaging three years in length.
Speaker 2: Napan Qualcom also giving a lift to chip stocks. Those
Speaker 2: shares up twelve and a half percent in early trading
Speaker 2: and its investor Day. The company forecast sales and more
Speaker 2: than fifteen billion dollars a year by fiscal twenty twenty
Speaker 2: nine in the booming market for AI components and data centers.
Speaker 3: Shifting focus down from big tech to big banks. Karen,
Speaker 3: those stocks will be in focus today after they passed
Speaker 3: the Federal Reserve stress test. Bloomberg's Alexis Christoffers joins us
Speaker 3: in New York with the details of access.
Speaker 12: Good Morning, Nathan. The FEDS exam, which was an outgrowth
Speaker 12: of the two thousand and eight financial crisis, showed that
Speaker 12: all of the banks examined would maintain enough capital to
Speaker 12: withstand a hypothetical economic downturn. As a result, JP Morgan, Chase, Goldman, Sachs,
Speaker 12: City Group, Morgan Stanley, and Wells Fargo all increased their
Speaker 12: dividend payouts. Bank of America says it will make its
Speaker 12: next quarterly dividend announcement after its July board meeting. JP
Speaker 12: Morgan also authorized a new fifty billion dollars share repurchase program.
Speaker 12: The nation's six biggest banks paid out more than one
Speaker 12: hundred and forty billion dollars in dividends and buybacks. Last year,
Speaker 12: the firms collectively posted their largest annual profits since twenty
Speaker 12: twenty one, on the back of record trading revenue. In
Speaker 12: New York, Alexis Christophers Bloomberg Radio.
Speaker 2: Right, Alexis, thank you. It's also a big morning for
Speaker 2: economic news. We get the FEDS preferred reading on inflation
Speaker 2: the Personal Consumption Expenditures price Index for the month of May.
Speaker 2: Forecasters expected data to show acceleration on both a monthly
Speaker 2: and year over year basis.
Speaker 1: Well.
Speaker 3: Karen Brent, oil is erasing all its wartime gains after
Speaker 3: flows through the Strait of Hormo was ramped up following
Speaker 3: progress on a US ron p steel the global benchmark
Speaker 3: dropped below seventy two forty eight a barrel that was
Speaker 3: its pre war closing price on a closing basis West
Speaker 3: Texas Intermediate. It's also near its pre war price of
Speaker 3: sixty seven oh two a barrel after it rallied to
Speaker 3: a conflict peak of just above one nineteen in March.
Speaker 3: As for what we're paying at the pump, the average
Speaker 3: price of gasoline has dipped to just under three ninety
Speaker 3: two a.
Speaker 2: Gallon time now for a look at some of the
Speaker 2: o their stories making news in New York and around
Speaker 2: the world. And for that we're joined by Bloomberg's Michael Barr. Michael,
Speaker 2: Good Morning, Good morning Karen.
Speaker 13: Two massive back to back earthquakes in Venezuela have killed
Speaker 13: at least thirty two people and injured more than seven hundred.
Speaker 13: The quakes toppled dozens of buildings and devastated the country's
Speaker 13: main international airport. The magnitude seven point two earthquake on
Speaker 13: Wednesday evening was followed a minute later by an even
Speaker 13: stronger earthquake measuring seven point five, with its epicenter west
Speaker 13: of Caracas. Associated Press reporter Juanarez, who lives in Caracas,
Speaker 13: says it's the strongest he's felt.
Speaker 4: Classes fell to the floor, neighbors are coming down to
Speaker 4: the streets.
Speaker 13: Acting Venezuelan President Delsi Rodriguez said more casualties were expected,
Speaker 13: with the country declaring a state of emergency. The US
Speaker 13: says it is sending resources in support. France's average daily
Speaker 13: temperature reached an all time high of one hundred and
Speaker 13: five as Europe's heat wave continues. It is so hot
Speaker 13: tourist sites have shut down. This Paris visitor says it
Speaker 13: would be better if museums open in the morning and
Speaker 13: then close during the hottest part of the day.
Speaker 14: You would rather close it like before the like twelve,
Speaker 14: for example, and closed until the five and then open
Speaker 14: it again so people can visit it in the innion
Speaker 14: when it's not that hot outside.
Speaker 13: Daytime high has reached one hundred eleven degrees in Pyo
Speaker 13: in the West. The head of New York City's transit
Speaker 13: system is standing by his decision not to sign an
Speaker 13: agreement on Penn Station's renovation. MTA Chief operating Officer jen O.
Speaker 13: Lieber says he does not want to enter a deal
Speaker 13: with President Donald Trump without protections. The dispute comes as
Speaker 13: President Trump Wednesday asked Congress to direct one billion dollars
Speaker 13: toward renovating Penn Station. Global News twenty four hours a
Speaker 13: day and whenever you want it with the Bloomberg News. Now.
Speaker 13: I'm Michael Barr, and this is Bloomberg Karen.
Speaker 2: Thanks Michael, all time now for our Bloomberg Sports update,
Speaker 2: and for that we bring in John stash Hour.
Speaker 15: Thanks Karen's doctor. Teams in the Al Central have been
Speaker 15: playing all weight. The White Sox won the first two,
Speaker 15: but the Guardians beat Chicago for three intendings to go
Speaker 15: back in the first place. At the World Cup in Vancouver,
Speaker 15: Switzerland beat Canada two to one. Switzerland wins the group.
Speaker 15: Canada advances as well, and so does Bosney and Herszegovina.
Speaker 13: Well.
Speaker 15: The three to one went over Qatar and they could
Speaker 15: be the US's opponent in the knockout round. The United
Speaker 15: States team plays Turkey eight tonight. It's a meaningless game
Speaker 15: for both teams. That's a Bloomberg Sports update.
Speaker 2: Stay with us. More from Bloomberg day Break coming up
Speaker 2: after this.
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 1: and around the world on Bloomberg dot Com and the
Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 3: Good morning, I'm Nathan hager Will. Tensions may have reached
Speaker 3: a boiling point between President Trump and Senate Republicans over
Speaker 3: the war where they Iran. Now, the Senate has reversed
Speaker 3: course on a war powers resolution, but Republican Senator Bill
Speaker 3: Cassidy says he doesn't regret speaking his mind.
Speaker 6: The American people need to know more than we are
Speaker 6: being told. The Senate needs to know, and it does
Speaker 6: not appear, although I don't know for sure that the
Speaker 6: course of this is going the way that we were told.
Speaker 3: That was Senator Cassidy after a closed door lunch on
Speaker 3: Capitol Hill with the President and a briefing later at
Speaker 3: the White House. Joining us for more is Bloomberg DC
Speaker 3: Breaking News editor Alexander Pearson and alex By all accounts,
Speaker 3: it sounded like things got pretty heated behind closed doors
Speaker 3: on Capitol Hill. Just how tense was it?
Speaker 9: Good morning, Good morning, Nathan. Yeah, you're right, it was
Speaker 9: a very tense closed door meeting yesterday at the Capitol.
Speaker 9: What's interesting is it was originally thought to be a
Speaker 9: discussion about housing bill that Trump had not given the
Speaker 9: signature to, but actually then became sort of a shouting
Speaker 9: match between Trump and for senators, in particular Bill Cassidy
Speaker 9: about them voting for a War Powers Act on Tuesday.
Speaker 9: So they crossed the aisle. They voted with Democrats for
Speaker 9: this measure that essentially called for the war with Iran
Speaker 9: to end or for the White House to seek congressional
Speaker 9: authorization to continue it. Trump was opposed to the measure naturally,
Speaker 9: and was very very angry with the Senators and that
Speaker 9: very much came to the four yesterday in this meeting.
Speaker 9: We have from from Senator Cassidy there, who really spoke
Speaker 9: up to the president. What is interesting is that later
Speaker 9: on in the day another vote was was had on
Speaker 9: this and it was reversed. So Senate Republican leadership were
Speaker 9: able to essentially signal to the White House that they've
Speaker 9: been able to fall back in line with the White
Speaker 9: House's wishes. But it certainly was a very tense state
Speaker 9: between Hill Republicans and the White House.
Speaker 3: So falling back in line, but does that sort of
Speaker 3: paper over the concerns that Cassidy and presumably others may
Speaker 3: have raised at this meeting about the progress that's being
Speaker 3: made toward a more permanent piece deal with Iran.
Speaker 9: Doesn't it p to be, you know, completely papered over there?
Speaker 9: There's still lingering concerns about it. Cassidy did say after
Speaker 9: his meeting at the White House that you know, some
Speaker 9: of his concerns were allayed and for now they seem
Speaker 9: to be falling in line. But yeah, under the surface,
Speaker 9: there certainly are concerns about where the negotiations are heading.
Speaker 9: Just given the uncertainty about the future arrangement for Homus,
Speaker 9: what Iran will be willing to agree to, how Iranian
Speaker 9: funds might potentially be unfrozen, and so this topic is
Speaker 9: unlikely to now be a closed one. We're likely to
Speaker 9: see more tensions in the future if the White House,
Speaker 9: at least from the perspective of certain senators, is not
Speaker 9: more forthcoming about where the negotiations are heading.
Speaker 3: Now, you mentioned that the President canceled plans to sign
Speaker 3: this bipartisan housing bill that I think Republicans were hoping
Speaker 3: to be able to tout as a way to alleviate
Speaker 3: many of American voter's economic concerns heading into the November midterms.
Speaker 3: What's the status of that housing bill?
Speaker 14: Now?
Speaker 9: Yeah, that's right. So President Trump blindsided congressional leadership yesterday
Speaker 9: by announcing on the hours before he was set to
Speaker 9: sign this bill that he would not sign it. His
Speaker 9: reasoning was he wanted a separate build of a voter
Speaker 9: ide build known as the Save America actively passed first.
Speaker 9: And the issue now is that he's withheld a signature
Speaker 9: from the housing bill, but it will actually pass into
Speaker 9: law after ten days even if he does not sign it,
Speaker 9: and he well, he could vote Vito it as well,
Speaker 9: and that would send it back and that could make
Speaker 9: things a little bit awkward for the Republicans on the
Speaker 9: Hill because they then have to vote again for it,
Speaker 9: you know, positions of the White House. But House Speaker
Speaker 9: Mike Johnson said yesterday that he believes President Trump will
Speaker 9: sign it, and it does seem likely that in some
Speaker 9: form it will pass eventually.
Speaker 3: Interesting to have all these cross currents alex ahead of
Speaker 3: the rally that President Trump publicized, you know, days before
Speaker 3: all these tensions and was just held last night on
Speaker 3: the National Mall in prime time. What's the message that
Speaker 3: came out.
Speaker 9: Of that, Yeah, very much a sort of classic Trump rally.
Speaker 9: He you know, touted the return of America, you know,
Speaker 9: under his leadership, and he he did address the war
Speaker 9: with Iran, defending you know, his policy on that, saying
Speaker 9: it was obviously an important war to ensure they wouldn't
Speaker 9: get nuclear weapons. But he also then defended the White
Speaker 9: House in terms of certain affordability concerns. So gas prices
Speaker 9: have risen quite considerably in the US as a result
Speaker 9: of the war, you know, he acknowledged that, but then
Speaker 9: said now that it's over, those will be coming down
Speaker 9: very quickly and should hit you know, pre war levels
Speaker 9: very soon. And so for him, you know, the message
Speaker 9: was very much there's nothing to really worry about. The
Speaker 9: wars over and as we head towards the midterms, you know,
Speaker 9: affordability will will not be you know, a major issue
Speaker 9: for voters.
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Speaker 7: Ray