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: Karen, we begin with politics and a Texas sized result.
Speaker 3: In the Republican primary runoff for Senate. With nearly all
Speaker 3: votes counted, State Attorney General Ken Paxton trounced four term
Speaker 3: incumbent John Cornyn sixty three point nine percent to thirty
Speaker 3: six point one percent. Paxton picked up President Trump's endorsement
Speaker 3: just last week. In his victory speech last night, Paxton
Speaker 3: gave the President the credit.
Speaker 4: President Trump is the leader of our party and his
Speaker 4: endorsement is the most powerful force in politics, and I'm
Speaker 4: honored to have his support and I look forward to
Speaker 4: working with him in the Senate to deliver for Texas.
Speaker 3: Texas Attorney General Ken Paxton will now face Democrat James
Speaker 3: Talerico in the general election in tall Rico is all
Speaker 3: read coming out Swinging.
Speaker 5: Three years ago, Ken Paxton was impeached by his own
Speaker 5: party for using his public office to enrich himself and
Speaker 5: his donors at the expense of the people. That kind
Speaker 5: of corruption is the rot at the core of this
Speaker 5: broken system.
Speaker 3: Democrat James Tallerrico posted that on YouTube last night. After
Speaker 3: Paxton's victory, Bloomberg Texas Bureau chief Julie Fine says, John
Speaker 3: Cornyn's loss I mean a big change in the Senate.
Speaker 6: This is somebody that rose the ranks of leadership, A
Speaker 6: trusted advisor of Mitch McConnell, lost to John Thune to
Speaker 6: become this speaker right now. So it's going to be
Speaker 6: a major, major difference for the state of Texas. The
Speaker 6: fact that Ken Paxon, who at times was an battled
Speaker 6: attorney general who had a share of legal problems, one
Speaker 6: by double digits really shows you where this race ended up.
Speaker 3: Bloomberg's Julie Fine reports Cornin highlighted his pro Trump voting
Speaker 3: record during the campaign and argued that Paxton won't be
Speaker 3: able to raise enough money against tall Rico. That argument
Speaker 3: came up short last night.
Speaker 2: Well, Nathan, the Senate runoff wasn't the only race to
Speaker 2: watch in Texas last night and the House, longtime Democratic
Speaker 2: Congressman Al Green was ousted in a generational contest against
Speaker 2: thirty eight year old Democrat Christian Menefee. Green was squeezed
Speaker 2: into a new district thanks to Texas Republican's mid term
Speaker 2: redistricting efforts. With nearly all votes counted, Menefee took sixty
Speaker 2: nine point six percent of Green's thirty and a half percent.
Speaker 2: Former Congressman Colin al Red defeated freshman and Democrat Julie
Speaker 2: Johnson fifty three point nine to forty six point one
Speaker 2: percent in the Dallas area district that he left a
Speaker 2: run for Senate in twenty twenty four and in the
Speaker 2: Republican run off to succeed Ken Paxton's attorney general, State
Speaker 2: Senator Mays Middleton beat Congressmanship Roy fifty five point two
Speaker 2: to forty four point eight percent.
Speaker 3: Now, Karen, let's get caught up on the latest on
Speaker 3: the war with Iran. The US is touting progress on
Speaker 3: a peace deal even after fresh skirmishes around the Strait
Speaker 3: of Hormuz. Bloomberg Middle East Managing editor Paul Wallace reports
Speaker 3: a number of sticking points remain in the way.
Speaker 7: Of a deal.
Speaker 8: One of them relates to, and this is a big one,
Speaker 8: the strait itself, and it is about whether the Iranians
Speaker 8: will allow free passage of ships through the waterway if
Speaker 8: and when there's an interim deal with the US, now
Speaker 8: the US and Arab States, and Europe and frankly the
Speaker 8: rest of the world. They want and demand that ships
Speaker 8: have free passage through straight but Iran is insisting on
Speaker 8: some kind of control.
Speaker 3: In Bloomberg's Paul Wallace reports, Iran's nuclear program is another
Speaker 3: bone of contention. A top member of Iran's nuclear negotiating
Speaker 3: team says his country's highly enriched geranium stockpile is not
Speaker 3: on the agenda in US talks, and until they've agreed
Speaker 3: on all issues, they consider that they've agreed on nothing.
Speaker 3: The officials spoke to reporters in Moscow at Russia's International
Speaker 3: Security Forum.
Speaker 2: On another news this morning, Nathan Joe Biden suing the
Speaker 2: Justice Department. The former president is trying to block officials
Speaker 2: from sharing audio recordings and transcripts of interviews he gave
Speaker 2: for a memoir project that a conservative advocacy group and
Speaker 2: Republicans in Congress. Lawsuit which puts a former president against
Speaker 2: his successors administration, comes amid a long running legal fight
Speaker 2: over a public records request for the materials by the
Speaker 2: Heritage Foundation. Bonden filed his own legal challenge to stop
Speaker 2: the disclosure, which is said to happen on June fifteenth.
Speaker 3: Well, Karen, Terriffree funds are on the way right now.
Speaker 3: More than twenty billion dollars is headed to importers who
Speaker 3: successfully filed claims using the new web portal developed by
Speaker 3: US Customs and Border Protection. The agencies in the process
Speaker 3: of issuing refunds to importers who paid as much as
Speaker 3: one hundred and sixty six billion dollars across more than
Speaker 3: fifty three million import entries. The refund process gained significance
Speaker 3: after the Supreme Court struck down portions of President Trump's tariffs.
Speaker 2: Well, let's turn to the markets now, Nathan, where futures
Speaker 2: are higher following another chip fueled rally for tech stocks
Speaker 2: and Bloomberg, John Tucker joins us with the latest.
Speaker 9: John, good morning, Good morning, Karen. Call it a chip frenzy.
Speaker 9: Investors are betting the AI boom is going to lead
Speaker 9: to a sustained revaluation of the industry. Micron Technology the
Speaker 9: best performing stock at the S and P five hundred
Speaker 9: and yesterday's session, finishing up more than nineteen percent. It's
Speaker 9: up two hundred and thirteen percent so farthest here and
Speaker 9: has now crossed above a market valuation of one trillion dollars.
Speaker 9: It was joined by sk Heinez in that exclusive club
Speaker 9: of Samsung Electronics hit that milestone earlier this month. These
Speaker 9: are the three leading makers of high bandwidth memory and
Speaker 9: with forecasts of memory shortages to last through twenty twenty seven,
Speaker 9: and let's say these companies will now have remarkable pricing
Speaker 9: power over the world's largest tech companies. In New York
Speaker 9: Income John Tucker, Bloomberg Radio.
Speaker 3: All right, John, thanks Carlos Group co founder David Rubinstein's
Speaker 3: weighing in on the market rally. He spoke with Bloomberg
Speaker 3: at the UBS Asian Investment Conference in Hong Kong.
Speaker 10: There are animal spirits that come out in the equity
Speaker 10: markets and fueled by two things. One the anticipated ibo
Speaker 10: prices of open Ai, of SpaceX and of Vanthropic. I
Speaker 10: think people are anticipating this as we'll have very high
Speaker 10: valuations and that will fuel the market and.
Speaker 7: Have an impact on other stocks.
Speaker 10: Secondly, I think people are thinking the war will eventually
Speaker 10: be over, and while we don't know when it's be over,
Speaker 10: they think it's in sight and therefore I think that'll
Speaker 10: fuel the equity markets and is fueling it right Now.
Speaker 3: David Rubinstein is the host of The David Rubinstein Show,
Speaker 3: peer to peer conversations on Bloomberg Television.
Speaker 2: Nathan China's Bike Dance is planning to sharply increase his
Speaker 2: capital spending this year and next. The developer of TikTok
Speaker 2: and a leading force and artificial intelligence, is trying to
Speaker 2: lead the Chinese AI market and challenge the top US
Speaker 2: players abroad. Sources say the Beijing Bay social media leader
Speaker 2: is discussing expenditures of as much as seventy billion dollars
Speaker 2: this year as it builds out data centers and another
Speaker 2: AI infrastructure.
Speaker 3: And Karen Donald Newhouse has died. He's the American billionaire
Speaker 3: who oversaw the newspapers at the heart of his family's
Speaker 3: closely held media empire. New House's Sun says he passed
Speaker 3: away as a state in Lambertville, New Jersey, after battling Lymphoma.
Speaker 3: New House newspapers included The Newark Star, Ledger, The Plane,
Speaker 3: d Learn Cleveland, The Oregonian, The Birmingham News, and The
Speaker 3: Times Pickyun in New Orleans. Donald Newhouse dead at the
Speaker 3: age of ninety six.
Speaker 2: Time Now for look at some of the other stories
Speaker 2: making news in New York and around the world, and
Speaker 2: for that we're joined by Bloomberg's Michael Barr.
Speaker 7: Michael, good morning, Good morning, Karen. The Trump administration plans
Speaker 7: to send US citizens exposed to the ebolavirus to Kenya
Speaker 7: rather than bring them home for observation and treatment. That's
Speaker 7: according to The New York Times doctor Darien Sutton.
Speaker 11: The current strain that's leading this current outbreak is called
Speaker 11: the Bundi Bougo strain, and it's important to understand that
Speaker 11: that strain has no vaccine or targeted treatment, and so
Speaker 11: all of these variables of what is likely leading to
Speaker 11: an equation. Unfortunately that means more cases and likely record
Speaker 11: breaking numbers that we will only we have only yet
Speaker 11: to see.
Speaker 7: Doctor Darien Sutton spoke to ABC. There are a reported
Speaker 7: nine hundred and thirty suspected cases and more than two
Speaker 7: hundred and twenty deaths and is spreading in a remote
Speaker 7: part of eastern Congo. At least one person has died
Speaker 7: and nine others remain unaccounted for. After a chemical tank
Speaker 7: imploded at a pulp and paper mill in Washington State,
Speaker 7: emergency responders in Longview plan to resume recovery efforts. This
Speaker 7: morning at the Nippon Dinahway Packaging Company, Washington. Governor Bob
Speaker 7: ferguson On.
Speaker 12: Behalf the people to say to Washington, I want all
Speaker 12: those individuals know that we stand with you. We'll be
Speaker 12: here to everything we can to help with the situation,
Speaker 12: and we'll be here as long as it takes.
Speaker 7: Governor Ferguson and other authorities say they are being hampered
Speaker 7: by ninety thousand gallons of the dangerous liquid that remain
Speaker 7: in the unstable tank. New York Mayor Zoron Mamdanni announced
Speaker 7: a massive public housing plan, pledging to build two hundred
Speaker 7: thousand affordable homes. Ma'm donnie proposed spending twenty two billion
Speaker 7: dollars on housing over the next five years, including five
Speaker 7: point six billion to improve public housing.
Speaker 13: We can keep people in their homes and we can
Speaker 13: build the homes that they need to live in. We
Speaker 13: have spoken about this crisis long enough. It is now
Speaker 13: time to do something about it. Our housing plan meets
Speaker 13: this crisis with the scale and urgency it demands.
Speaker 7: Mayor Mamdannie says his plan calls for zoning changes in
Speaker 7: some neighborhoods that are not building enough housing. Global news
Speaker 7: twenty four hours a day and whenever you want it
Speaker 7: with Bloomberg News Now, Tom, Michael Barr, and this is
Speaker 7: Bloomberg Carent. Thanks Michael.
Speaker 2: A time now for our Bloomberg Sports Update, and for
Speaker 2: that we bring in John stash Hour.
Speaker 14: Thanks Darin. Last two years, the Oklahoma City Thunder have
Speaker 14: only lost nine times in the playoffs, and each time
Speaker 14: they've followed the loss with a win. They got blown
Speaker 14: out in Game four it San Antonio, they came home
Speaker 14: beat the Spurs one twenty seven to one, fourteen Shay
Speaker 14: Gildes Alexander score thirty two, and the Thunder now lead
Speaker 14: the series three games to two. A sweep of the
Speaker 14: Stanley Cup playoffs. Vegas beat Colorado two to one. Swept
Speaker 14: the West Final from the Avalanche, who had the best
Speaker 14: record in the regular season. A couple of upsets at
Speaker 14: the French Open. Jess Picgol and d Neil Medvedev both lost.
Speaker 14: That's to 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,
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Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 7: Good morning.
Speaker 3: I'm Nathan Hager. The Texas Senate runoff has led to
Speaker 3: a runaway victory for Ken Paxton. After winning President Trump's
Speaker 3: endorsement last week, the state attorney general defeated longtime incumbent
Speaker 3: John Cornyn, and, as he puts it, Senate Texas sized
Speaker 3: message to Washington.
Speaker 4: I said it in March, and I'll say it again
Speaker 4: now today. Change was on the ballot, and change one.
Speaker 3: Ken Paxton in his victory speech last night. Joining us
Speaker 3: this morning after is Terry Haines, the founder of Pangaeopolicy.
Speaker 3: Great to speak with you again, Terry, and I think
Speaker 3: after last week's election results you put sixty percent odds
Speaker 3: of Republicans taking full control of Congress in November. There's
Speaker 3: much reason to change that prediction after last night.
Speaker 15: Good morning, Good morning, Nathan. Yes, I will stick to
Speaker 15: the sixty percent likely. The reason I think what markets
Speaker 15: learned from last night's Texas results particularly is that the
Speaker 15: old mainstream Democrat friendly narrative for the midterms is getting
Speaker 15: upended by a combination of Republican redistricting gains, increased Republican
Speaker 15: voter enthusiasm and a Trump Republican money advantage going into
Speaker 15: the fall that hasn't yet been fully seen. So that's
Speaker 15: going to even out the playing field a lot. And
Speaker 15: what that nets today five months out is a Republican
Speaker 15: advantage in holding holding the Congress.
Speaker 3: Of course, during the campaign, Senator Cornyan argued that Paxston
Speaker 3: is going to be in albatross around other Republican candidates. Next,
Speaker 3: we've already heard from his November opponent, James taal Rico
Speaker 3: in a YouTube video last night, already highlighting a lot
Speaker 3: of Ken Paxton's scandals in the past. Is there a
Speaker 3: risk that this nomination backfires on Republicans?
Speaker 15: Oh sure absolutely. You know, the media and political professionals alike.
Speaker 15: I think will be fascinated by the Texas Senate race
Speaker 15: because it matches two wildly imperfect candidates. Paxson is, of
Speaker 15: course the Trump based candidate, as you see with that
Speaker 15: sort of thumping primary victory, but he gets dogged by
Speaker 15: long standing ethical challenges, a polarizing style. The question really
Speaker 15: will be is he a kind of a high floor,
Speaker 15: low ceiling person politically speaking? The Democrat taal Rico, though,
Speaker 15: has his own problems. He's never run statewide, has no
Speaker 15: demonstrated appeal to a wide variety of swing voters in Texas,
Speaker 15: which is a very diverse state. He's very easy to
Speaker 15: Austin code, you know, kind of claiming he's kind of
Speaker 15: a typical of the Austin style liberal. And he's been
Speaker 15: competitive so far, but he hasn't been strong. He's never
Speaker 15: gotten over fifty percent in polls, and Texas is a
Speaker 15: right leaning state. So the question really is what does
Speaker 15: Texas revert to type or does it not.
Speaker 3: He's got a pretty big money advantage as well. He's
Speaker 3: raised a lot of money since the primary election on
Speaker 3: his side. Does that make a difference in this race?
Speaker 15: His Tall Ricos yes.
Speaker 2: That.
Speaker 15: That'll help him certainly. But the question is where does
Speaker 15: the money come from? And it's a two edged sword
Speaker 15: because on the one hand, if it's if it's smaller
Speaker 15: dollar donations that accumulate, if it's local people, local Texans, others,
Speaker 15: that's one sort of look. If it's the National Democratic
Speaker 15: Party piling money in, that's a different look, and it
Speaker 15: says a couple of different things. One is, you know,
Speaker 15: national Democrats will see tall Rico as some sort of
Speaker 15: savior of the kind that's you've seen a lot in
Speaker 15: Texas over the past several decades. The so called centrist
Speaker 15: Democrat who never ends up winning and the influx of
Speaker 15: National Democratic money also carries a lot of baggage with
Speaker 15: it in Texas, where people will think the National Party's
Speaker 15: trying to steal an election.
Speaker 2: This is Bloomberg Daybreak, your morning podcast on the stories
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