WEBVTT - Paxton Dominates Texas Primary; US-Iran Optimism

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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<v Speaker 2>are the stories we're following today.

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<v Speaker 3>Karen, we begin with politics and a Texas sized result.

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<v Speaker 3>In the Republican primary runoff for Senate. With nearly all

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<v Speaker 3>votes counted, State Attorney General Ken Paxton trounced four term

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<v Speaker 3>incumbent John Cornyn sixty three point nine percent to thirty

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<v Speaker 3>six point one percent. Paxton picked up President Trump's endorsement

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<v Speaker 3>just last week. In his victory speech last night, Paxton

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<v Speaker 3>gave the President the credit.

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<v Speaker 4>President Trump is the leader of our party and his

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<v Speaker 4>endorsement is the most powerful force in politics, and I'm

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<v Speaker 4>honored to have his support and I look forward to

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<v Speaker 4>working with him in the Senate to deliver for Texas.

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<v Speaker 3>Texas Attorney General Ken Paxton will now face Democrat James

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<v Speaker 3>Talerico in the general election in tall Rico is all

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<v Speaker 3>read coming out Swinging.

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<v Speaker 5>Three years ago, Ken Paxton was impeached by his own

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<v Speaker 5>party for using his public office to enrich himself and

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<v Speaker 5>his donors at the expense of the people. That kind

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<v Speaker 5>of corruption is the rot at the core of this

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<v Speaker 5>broken system.

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<v Speaker 3>Democrat James Tallerrico posted that on YouTube last night. After

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<v Speaker 3>Paxton's victory, Bloomberg Texas Bureau chief Julie Fine says, John

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<v Speaker 3>Cornyn's loss I mean a big change in the Senate.

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<v Speaker 6>This is somebody that rose the ranks of leadership, A

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<v Speaker 6>trusted advisor of Mitch McConnell, lost to John Thune to

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<v Speaker 6>become this speaker right now. So it's going to be

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<v Speaker 6>a major, major difference for the state of Texas. The

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<v Speaker 6>fact that Ken Paxon, who at times was an battled

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<v Speaker 6>attorney general who had a share of legal problems, one

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<v Speaker 6>by double digits really shows you where this race ended up.

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<v Speaker 3>Bloomberg's Julie Fine reports Cornin highlighted his pro Trump voting

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<v Speaker 3>record during the campaign and argued that Paxton won't be

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<v Speaker 3>able to raise enough money against tall Rico. That argument

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<v Speaker 3>came up short last night.

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<v Speaker 2>Well, Nathan, the Senate runoff wasn't the only race to

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<v Speaker 2>watch in Texas last night and the House, longtime Democratic

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<v Speaker 2>Congressman Al Green was ousted in a generational contest against

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<v Speaker 2>thirty eight year old Democrat Christian Menefee. Green was squeezed

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<v Speaker 2>into a new district thanks to Texas Republican's mid term

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<v Speaker 2>redistricting efforts. With nearly all votes counted, Menefee took sixty

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<v Speaker 2>nine point six percent of Green's thirty and a half percent.

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<v Speaker 2>Former Congressman Colin al Red defeated freshman and Democrat Julie

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<v Speaker 2>Johnson fifty three point nine to forty six point one

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<v Speaker 2>percent in the Dallas area district that he left a

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<v Speaker 2>run for Senate in twenty twenty four and in the

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<v Speaker 2>Republican run off to succeed Ken Paxton's attorney general, State

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<v Speaker 2>Senator Mays Middleton beat Congressmanship Roy fifty five point two

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<v Speaker 2>to forty four point eight percent.

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<v Speaker 3>Now, Karen, let's get caught up on the latest on

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<v Speaker 3>the war with Iran. The US is touting progress on

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<v Speaker 3>a peace deal even after fresh skirmishes around the Strait

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<v Speaker 3>of Hormuz. Bloomberg Middle East Managing editor Paul Wallace reports

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<v Speaker 3>a number of sticking points remain in the way.

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<v Speaker 7>Of a deal.

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<v Speaker 8>One of them relates to, and this is a big one,

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<v Speaker 8>the strait itself, and it is about whether the Iranians

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<v Speaker 8>will allow free passage of ships through the waterway if

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<v Speaker 8>and when there's an interim deal with the US, now

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<v Speaker 8>the US and Arab States, and Europe and frankly the

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<v Speaker 8>rest of the world. They want and demand that ships

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<v Speaker 8>have free passage through straight but Iran is insisting on

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<v Speaker 8>some kind of control.

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<v Speaker 3>In Bloomberg's Paul Wallace reports, Iran's nuclear program is another

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<v Speaker 3>bone of contention. A top member of Iran's nuclear negotiating

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<v Speaker 3>team says his country's highly enriched geranium stockpile is not

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<v Speaker 3>on the agenda in US talks, and until they've agreed

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<v Speaker 3>on all issues, they consider that they've agreed on nothing.

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<v Speaker 3>The officials spoke to reporters in Moscow at Russia's International

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<v Speaker 3>Security Forum.

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<v Speaker 2>On another news this morning, Nathan Joe Biden suing the

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<v Speaker 2>Justice Department. The former president is trying to block officials

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<v Speaker 2>from sharing audio recordings and transcripts of interviews he gave

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<v Speaker 2>for a memoir project that a conservative advocacy group and

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<v Speaker 2>Republicans in Congress. Lawsuit which puts a former president against

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<v Speaker 2>his successors administration, comes amid a long running legal fight

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<v Speaker 2>over a public records request for the materials by the

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<v Speaker 2>Heritage Foundation. Bonden filed his own legal challenge to stop

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<v Speaker 2>the disclosure, which is said to happen on June fifteenth.

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<v Speaker 3>Well, Karen, Terriffree funds are on the way right now.

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<v Speaker 3>More than twenty billion dollars is headed to importers who

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<v Speaker 3>successfully filed claims using the new web portal developed by

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<v Speaker 3>US Customs and Border Protection. The agencies in the process

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<v Speaker 3>of issuing refunds to importers who paid as much as

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<v Speaker 3>one hundred and sixty six billion dollars across more than

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<v Speaker 3>fifty three million import entries. The refund process gained significance

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<v Speaker 3>after the Supreme Court struck down portions of President Trump's tariffs.

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<v Speaker 2>Well, let's turn to the markets now, Nathan, where futures

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<v Speaker 2>are higher following another chip fueled rally for tech stocks

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<v Speaker 2>and Bloomberg, John Tucker joins us with the latest.

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<v Speaker 9>John, good morning, Good morning, Karen. Call it a chip frenzy.

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<v Speaker 9>Investors are betting the AI boom is going to lead

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<v Speaker 9>to a sustained revaluation of the industry. Micron Technology the

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<v Speaker 9>best performing stock at the S and P five hundred

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<v Speaker 9>and yesterday's session, finishing up more than nineteen percent. It's

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<v Speaker 9>up two hundred and thirteen percent so farthest here and

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<v Speaker 9>has now crossed above a market valuation of one trillion dollars.

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<v Speaker 9>It was joined by sk Heinez in that exclusive club

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<v Speaker 9>of Samsung Electronics hit that milestone earlier this month. These

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<v Speaker 9>are the three leading makers of high bandwidth memory and

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<v Speaker 9>with forecasts of memory shortages to last through twenty twenty seven,

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<v Speaker 9>and let's say these companies will now have remarkable pricing

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<v Speaker 9>power over the world's largest tech companies. In New York

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<v Speaker 9>Income John Tucker, Bloomberg Radio.

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<v Speaker 3>All right, John, thanks Carlos Group co founder David Rubinstein's

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<v Speaker 3>weighing in on the market rally. He spoke with Bloomberg

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<v Speaker 3>at the UBS Asian Investment Conference in Hong Kong.

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<v Speaker 10>There are animal spirits that come out in the equity

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<v Speaker 10>markets and fueled by two things. One the anticipated ibo

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<v Speaker 10>prices of open Ai, of SpaceX and of Vanthropic. I

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<v Speaker 10>think people are anticipating this as we'll have very high

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<v Speaker 10>valuations and that will fuel the market and.

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<v Speaker 7>Have an impact on other stocks.

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<v Speaker 10>Secondly, I think people are thinking the war will eventually

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<v Speaker 10>be over, and while we don't know when it's be over,

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<v Speaker 10>they think it's in sight and therefore I think that'll

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<v Speaker 10>fuel the equity markets and is fueling it right Now.

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<v Speaker 3>David Rubinstein is the host of The David Rubinstein Show,

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<v Speaker 3>peer to peer conversations on Bloomberg Television.

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<v Speaker 2>Nathan China's Bike Dance is planning to sharply increase his

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<v Speaker 2>capital spending this year and next. The developer of TikTok

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<v Speaker 2>and a leading force and artificial intelligence, is trying to

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<v Speaker 2>lead the Chinese AI market and challenge the top US

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<v Speaker 2>players abroad. Sources say the Beijing Bay social media leader

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<v Speaker 2>is discussing expenditures of as much as seventy billion dollars

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<v Speaker 2>this year as it builds out data centers and another

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<v Speaker 2>AI infrastructure.

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<v Speaker 3>And Karen Donald Newhouse has died. He's the American billionaire

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<v Speaker 3>who oversaw the newspapers at the heart of his family's

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<v Speaker 3>closely held media empire. New House's Sun says he passed

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<v Speaker 3>away as a state in Lambertville, New Jersey, after battling Lymphoma.

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<v Speaker 3>New House newspapers included The Newark Star, Ledger, The Plane,

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<v Speaker 3>d Learn Cleveland, The Oregonian, The Birmingham News, and The

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<v Speaker 3>Times Pickyun in New Orleans. Donald Newhouse dead at the

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<v Speaker 3>age of ninety six.

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<v Speaker 2>Time Now for look at some of the other stories

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<v Speaker 2>making news in New York and around the world, and

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<v Speaker 2>for that we're joined by Bloomberg's Michael Barr.

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<v Speaker 7>Michael, good morning, Good morning, Karen. The Trump administration plans

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<v Speaker 7>to send US citizens exposed to the ebolavirus to Kenya

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<v Speaker 7>rather than bring them home for observation and treatment. That's

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<v Speaker 7>according to The New York Times doctor Darien Sutton.

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<v Speaker 11>The current strain that's leading this current outbreak is called

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<v Speaker 11>the Bundi Bougo strain, and it's important to understand that

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<v Speaker 11>that strain has no vaccine or targeted treatment, and so

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<v Speaker 11>all of these variables of what is likely leading to

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<v Speaker 11>an equation. Unfortunately that means more cases and likely record

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<v Speaker 11>breaking numbers that we will only we have only yet

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<v Speaker 11>to see.

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<v Speaker 7>Doctor Darien Sutton spoke to ABC. There are a reported

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<v Speaker 7>nine hundred and thirty suspected cases and more than two

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<v Speaker 7>hundred and twenty deaths and is spreading in a remote

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<v Speaker 7>part of eastern Congo. At least one person has died

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<v Speaker 7>and nine others remain unaccounted for. After a chemical tank

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<v Speaker 7>imploded at a pulp and paper mill in Washington State,

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<v Speaker 7>emergency responders in Longview plan to resume recovery efforts. This

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<v Speaker 7>morning at the Nippon Dinahway Packaging Company, Washington. Governor Bob

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<v Speaker 7>ferguson On.

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<v Speaker 12>Behalf the people to say to Washington, I want all

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<v Speaker 12>those individuals know that we stand with you. We'll be

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<v Speaker 12>here to everything we can to help with the situation,

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<v Speaker 12>and we'll be here as long as it takes.

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<v Speaker 7>Governor Ferguson and other authorities say they are being hampered

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<v Speaker 7>by ninety thousand gallons of the dangerous liquid that remain

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<v Speaker 7>in the unstable tank. New York Mayor Zoron Mamdanni announced

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<v Speaker 7>a massive public housing plan, pledging to build two hundred

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<v Speaker 7>thousand affordable homes. Ma'm donnie proposed spending twenty two billion

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<v Speaker 7>dollars on housing over the next five years, including five

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<v Speaker 7>point six billion to improve public housing.

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<v Speaker 13>We can keep people in their homes and we can

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<v Speaker 13>build the homes that they need to live in. We

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<v Speaker 13>have spoken about this crisis long enough. It is now

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<v Speaker 13>time to do something about it. Our housing plan meets

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<v Speaker 13>this crisis with the scale and urgency it demands.

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<v Speaker 7>Mayor Mamdannie says his plan calls for zoning changes in

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<v Speaker 7>some neighborhoods that are not building enough housing. Global news

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<v Speaker 7>twenty four hours a day and whenever you want it

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<v Speaker 7>with Bloomberg News Now, Tom, Michael Barr, and this is

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<v Speaker 7>Bloomberg Carent. Thanks Michael.

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<v Speaker 2>A time now for our Bloomberg Sports Update, and for

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<v Speaker 2>that we bring in John stash Hour.

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<v Speaker 14>Thanks Darin. Last two years, the Oklahoma City Thunder have

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<v Speaker 14>only lost nine times in the playoffs, and each time

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<v Speaker 14>they've followed the loss with a win. They got blown

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<v Speaker 14>out in Game four it San Antonio, they came home

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<v Speaker 14>beat the Spurs one twenty seven to one, fourteen Shay

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<v Speaker 14>Gildes Alexander score thirty two, and the Thunder now lead

0:09:48.600 --> 0:09:50.839
<v Speaker 14>the series three games to two. A sweep of the

0:09:50.840 --> 0:09:54.199
<v Speaker 14>Stanley Cup playoffs. Vegas beat Colorado two to one. Swept

0:09:54.200 --> 0:09:56.280
<v Speaker 14>the West Final from the Avalanche, who had the best

0:09:56.400 --> 0:09:58.720
<v Speaker 14>record in the regular season. A couple of upsets at

0:09:58.720 --> 0:10:01.640
<v Speaker 14>the French Open. Jess Picgol and d Neil Medvedev both lost.

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<v Speaker 14>That's to Bloomberg Sports Update.

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<v Speaker 2>Stay with us more from Bloomberg Day Break coming up

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<v Speaker 2>after this.

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<v Speaker 1>Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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<v Speaker 1>and around the world on Bloomberg dot Com and the

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<v Speaker 1>Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 7>Good morning.

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<v Speaker 3>I'm Nathan Hager. The Texas Senate runoff has led to

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<v Speaker 3>a runaway victory for Ken Paxton. After winning President Trump's

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<v Speaker 3>endorsement last week, the state attorney general defeated longtime incumbent

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<v Speaker 3>John Cornyn, and, as he puts it, Senate Texas sized

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<v Speaker 3>message to Washington.

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<v Speaker 4>I said it in March, and I'll say it again

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<v Speaker 4>now today. Change was on the ballot, and change one.

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<v Speaker 3>Ken Paxton in his victory speech last night. Joining us

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<v Speaker 3>this morning after is Terry Haines, the founder of Pangaeopolicy.

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<v Speaker 3>Great to speak with you again, Terry, and I think

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<v Speaker 3>after last week's election results you put sixty percent odds

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<v Speaker 3>of Republicans taking full control of Congress in November. There's

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<v Speaker 3>much reason to change that prediction after last night.

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<v Speaker 15>Good morning, Good morning, Nathan. Yes, I will stick to

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<v Speaker 15>the sixty percent likely. The reason I think what markets

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<v Speaker 15>learned from last night's Texas results particularly is that the

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<v Speaker 15>old mainstream Democrat friendly narrative for the midterms is getting

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<v Speaker 15>upended by a combination of Republican redistricting gains, increased Republican

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<v Speaker 15>voter enthusiasm and a Trump Republican money advantage going into

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<v Speaker 15>the fall that hasn't yet been fully seen. So that's

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<v Speaker 15>going to even out the playing field a lot. And

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<v Speaker 15>what that nets today five months out is a Republican

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<v Speaker 15>advantage in holding holding the Congress.

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<v Speaker 3>Of course, during the campaign, Senator Cornyan argued that Paxston

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<v Speaker 3>is going to be in albatross around other Republican candidates. Next,

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<v Speaker 3>we've already heard from his November opponent, James taal Rico

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<v Speaker 3>in a YouTube video last night, already highlighting a lot

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<v Speaker 3>of Ken Paxton's scandals in the past. Is there a

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<v Speaker 3>risk that this nomination backfires on Republicans?

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<v Speaker 15>Oh sure absolutely. You know, the media and political professionals alike.

0:12:17.760 --> 0:12:21.480
<v Speaker 15>I think will be fascinated by the Texas Senate race

0:12:22.000 --> 0:12:26.160
<v Speaker 15>because it matches two wildly imperfect candidates. Paxson is, of

0:12:26.240 --> 0:12:29.080
<v Speaker 15>course the Trump based candidate, as you see with that

0:12:29.200 --> 0:12:32.920
<v Speaker 15>sort of thumping primary victory, but he gets dogged by

0:12:33.000 --> 0:12:37.520
<v Speaker 15>long standing ethical challenges, a polarizing style. The question really

0:12:37.559 --> 0:12:39.400
<v Speaker 15>will be is he a kind of a high floor,

0:12:39.440 --> 0:12:44.760
<v Speaker 15>low ceiling person politically speaking? The Democrat taal Rico, though,

0:12:44.840 --> 0:12:47.720
<v Speaker 15>has his own problems. He's never run statewide, has no

0:12:47.840 --> 0:12:51.360
<v Speaker 15>demonstrated appeal to a wide variety of swing voters in Texas,

0:12:51.920 --> 0:12:54.679
<v Speaker 15>which is a very diverse state. He's very easy to

0:12:54.800 --> 0:12:58.920
<v Speaker 15>Austin code, you know, kind of claiming he's kind of

0:12:58.960 --> 0:13:02.600
<v Speaker 15>a typical of the Austin style liberal. And he's been

0:13:02.640 --> 0:13:05.280
<v Speaker 15>competitive so far, but he hasn't been strong. He's never

0:13:05.280 --> 0:13:08.240
<v Speaker 15>gotten over fifty percent in polls, and Texas is a

0:13:08.320 --> 0:13:11.160
<v Speaker 15>right leaning state. So the question really is what does

0:13:11.440 --> 0:13:13.880
<v Speaker 15>Texas revert to type or does it not.

0:13:15.080 --> 0:13:17.200
<v Speaker 3>He's got a pretty big money advantage as well. He's

0:13:17.280 --> 0:13:21.439
<v Speaker 3>raised a lot of money since the primary election on

0:13:21.600 --> 0:13:25.280
<v Speaker 3>his side. Does that make a difference in this race?

0:13:26.200 --> 0:13:28.080
<v Speaker 15>His Tall Ricos yes.

0:13:28.480 --> 0:13:28.560
<v Speaker 2>That.

0:13:30.040 --> 0:13:32.200
<v Speaker 15>That'll help him certainly. But the question is where does

0:13:32.200 --> 0:13:35.439
<v Speaker 15>the money come from? And it's a two edged sword

0:13:35.520 --> 0:13:39.920
<v Speaker 15>because on the one hand, if it's if it's smaller

0:13:39.960 --> 0:13:44.840
<v Speaker 15>dollar donations that accumulate, if it's local people, local Texans, others,

0:13:44.880 --> 0:13:48.199
<v Speaker 15>that's one sort of look. If it's the National Democratic

0:13:48.240 --> 0:13:51.079
<v Speaker 15>Party piling money in, that's a different look, and it

0:13:51.120 --> 0:13:53.440
<v Speaker 15>says a couple of different things. One is, you know,

0:13:53.600 --> 0:13:56.880
<v Speaker 15>national Democrats will see tall Rico as some sort of

0:13:56.920 --> 0:14:00.960
<v Speaker 15>savior of the kind that's you've seen a lot in

0:14:01.000 --> 0:14:05.439
<v Speaker 15>Texas over the past several decades. The so called centrist

0:14:05.440 --> 0:14:09.880
<v Speaker 15>Democrat who never ends up winning and the influx of

0:14:09.960 --> 0:14:14.040
<v Speaker 15>National Democratic money also carries a lot of baggage with

0:14:14.160 --> 0:14:17.120
<v Speaker 15>it in Texas, where people will think the National Party's

0:14:17.120 --> 0:14:18.079
<v Speaker 15>trying to steal an election.

0:14:19.880 --> 0:14:23.320
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