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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning.

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Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 3: stories we're following today.

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Speaker 2: Karen, we begin with the latest from the NATO leader

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Speaker 2: summit in the Hague. President Trump is calling it a

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Speaker 2: major success after finalizing a significant defense spending boost from

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Speaker 2: member states.

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Speaker 4: In a very historic milestone this week, the NATO allies

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Speaker 4: committed to dramatically increase their defense spending two that five

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Speaker 4: percent of GDP, something that no one really thought possible.

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Speaker 5: And they said, you did it, sir.

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Speaker 6: You did it.

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Speaker 7: Well.

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Speaker 4: I don't know if I did it, but I think

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Speaker 4: I did.

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Speaker 2: President spoke at a news conference following the NATO summit,

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Speaker 2: or live on Bloomberg Radio. The agreement gives member nations

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Speaker 2: until twenty thirty five to reach the five percent spending threshold.

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Speaker 8: Nathan.

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Speaker 3: Also at the NATO summit, President Trump opened the door

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Speaker 3: to diplomacy with Iran after last weekend's airstrikes on its

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Speaker 3: main underground nuclears.

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Speaker 4: We're going to talk to them next week. With the

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Speaker 4: run we may shine an agreement.

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Speaker 9: I don't know.

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Speaker 4: To me, I don't think it's that necessary.

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Speaker 3: The President repeated, his argument that the strikes obliterated around

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Speaker 3: to nuclear facilities. An initial Pentagon assessment said it may

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Speaker 3: have set the program back just a few months. Bloombergs

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Speaker 3: dew Monibor said she has more on where the talks

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Speaker 3: could go from here.

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Speaker 6: In the run up to this war, five rounds of

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Speaker 6: discussions had taken place, mediated by Oman by Katar in

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Speaker 6: order to progress with the nuclear deal. The sixth round

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Speaker 6: was supposed to take place a couple of days after

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Speaker 6: the war began, but of course, at the twelve day

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Speaker 6: war that ensued, putting back all of those discussions. Now

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Speaker 6: the US are expressing optimism that the two sides can

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Speaker 6: find some form of an agreement. Yesterday, the Special ENVOYE.

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Speaker 6: Steve Whitcoffe, in an interview, said we are hopeful for

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Speaker 6: a comprehensive peace agreement. The signs are.

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Speaker 3: There, and Bloombergs dew maniber Sechi, reporting from Dubai, President

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Speaker 3: Trump said the war between Iran and Israel is effectively

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Speaker 3: over after the US bombing campaign, though he says it

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Speaker 3: could start again and Karen.

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Speaker 2: President Trump is once again taking aim at J.

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Speaker 10: Powell.

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Speaker 2: The Wall Street Journals reporting the President could actually announce

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Speaker 2: a replacement for the FED chair as soon as September.

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Speaker 2: He says he has a list of people to succeed

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Speaker 2: Powell when his term expires next year.

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Speaker 4: Yeah, I know within three or four people who are

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Speaker 4: going to pick. I mean, he goes out pretty so unfortunately,

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Speaker 4: because I think he's terrible. We have no inflation, we

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Speaker 4: have a tremendous economy.

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Speaker 2: President Trump is called on the FED to lower rates

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Speaker 2: by two and a half points. Last week, the Central

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Speaker 2: Bank decided to leave rates unchanged in the range of

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Speaker 2: four and a quarter to four and a half percent.

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Speaker 2: Markets are pricing sixty two basis points of easing by

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Speaker 2: the end of this year. The chance of a cut

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Speaker 2: next month remains at about twenty percent.

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Speaker 3: Meanwhile, Nathan Powell wrapped up two days of congressional testimony

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Speaker 3: on Capitol Hill. The head of the FED repeated his

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Speaker 3: message that it's tough to figure out how tariffs will

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Speaker 3: affect inflation.

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Speaker 11: The question is who's going to pay for the tariffs.

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Speaker 11: Originally it's the importer, but it gets passed along through

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Speaker 11: the distribution change to some extent of the consumer. The

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Speaker 11: ultimate question of it is how much of it does

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Speaker 11: show up in inflation and Honestly, it's very hard to

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Speaker 11: predict that in advance.

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Speaker 3: Powell told the House Financial Services Committee that recent economic

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Speaker 3: data is backward looking and many economists expect a meaningful

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Speaker 3: increase in inflation over the course of this year due

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Speaker 3: to tariffs.

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Speaker 2: Karen Investors get a slew of reports to the GEST

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Speaker 2: this morning on the economy, and we get a preview

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Speaker 2: from Bloomberg's Michael McKee.

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Speaker 5: Bit by bit, analysts are hoping to build a picture

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Speaker 5: of the post tariff announcement economy. Initial jobless claims will

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Speaker 5: be front and center today claims have ratcheted a little

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Speaker 5: higher in recent weeks. Any rise in unemployment may suggest

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Speaker 5: earlier fed Rake cuts. We'll also get new orders for

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Speaker 5: durable goods. A jump in orders for expensive Boeing jets

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Speaker 5: should boost the headline number, but capital goods, a proxy

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Speaker 5: for overall all business spending, are forecast to rise only modestly.

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Speaker 5: That may be another signal the economy is slowly also

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Speaker 5: on tap today the first look at trade in May.

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Speaker 5: Imports are expected to drop for a second month after

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Speaker 5: a lot of tariff front running purchases the first part

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Speaker 5: of the year. That should narrow the overall trade deficit.

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Speaker 5: Michael McKee, Blueberg Radio.

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Speaker 3: All right, Michael, thank you. As for the equity markets,

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Speaker 3: futures are higher ahead of the Thursday session. Chares a

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Speaker 3: Micron Technology. You're up two and a half percent in

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Speaker 3: early trading. The chip maker is forecasting stronger than expected

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Speaker 3: revenue this quarter, citing booming demand for AI related ships.

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Speaker 3: Kim Forrest is founder at Boca Capital Partners.

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Speaker 8: I think they really eclipsed what I had thought they

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Speaker 8: could do in this quarter. Remember the chips that are

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Speaker 8: driving their earnings hire sold out for the end of

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Speaker 8: this year, which is next quarter, so they're already booking

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Speaker 8: next year's twenty twenty six high bandwidth memory order.

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Speaker 3: And Kim Forest of Boga Capital Partners. Micron has been

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Speaker 3: one of the chip industry's hottest stocks this year. Shares

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Speaker 3: have gained more than fifty percent so far this year.

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Speaker 2: And Karen Fellowship maker and Vidia is trading at a

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Speaker 2: record high this morning. It's up another one percent in

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Speaker 2: the pre market. The AI Darling's market cap has risen

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Speaker 2: sixty three percent off in April low, a rally that

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Speaker 2: has added nearly one and a half trillion dollars to

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Speaker 2: its valuation, and Vidia has now overtaken Microsoft as the

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Speaker 2: world's largest stock with a market cap of nearly three

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Speaker 2: point eight trillion dollars and Europe.

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Speaker 3: Nathan Shell says it has no intention of making an

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Speaker 3: offer for rival oil giant BP, and we get the

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Speaker 3: very latest from Bloomberg's Ewen Potts Ewen coarenon.

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Speaker 12: Nathan Shell's announcement today quell speculation of the UK's two

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Speaker 12: oil major's Cookabine to take on the likes of Exxon

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Speaker 12: and Chevron. Bp'sadyrs briefly surged in New York yesterday after

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Speaker 12: The Wall Street Journal reported the company was in early

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Speaker 12: stage takeover talks, but today Well has clarified it has

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Speaker 12: no intention of making an office of BP and says

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Speaker 12: no talks have taken place in London. I'mium Pots Splinberg Radio.

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Speaker 3: Time now for a look at some of the other

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Speaker 3: stories making news in New York and around the world,

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Speaker 3: and for that we're joined by Bloomberg's Michael Barr.

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Speaker 7: Michael, Good morning, Good morning, Karen. Closing arguments as scheduled

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Speaker 7: to begin today in the Sean Diddycombe sex trafficking trial. Yesterday,

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Speaker 7: federal prosecutors asked a judge to strike language regarding attempted

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Speaker 7: kidnapping and arson from jury instructions, while the rap mogul

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Speaker 7: also faces racketeering conspiracy counts. Prosecutors said in a filing

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Speaker 7: to the judge that they understand the court's desire for

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Speaker 7: streamline instructions to jurors. People are still talking about this

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Speaker 7: week's political shocker. In the New York Democratic primary for mayor,

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Speaker 7: a thirty three year old self described democratic socialist State

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Speaker 7: assemblyman Zoron Mumdani, defeated nearly a dozen candidates, including former

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Speaker 7: Governor Andrew Cuomo. I'mdani, speaking the WABC, was asked about

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Speaker 7: democratic socialism.

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Speaker 13: I think of the words of Doctor King, who decades

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Speaker 13: ago said call it democracy or call it democratic socialism.

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Speaker 13: There must be a better distribution of wealth for all

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Speaker 13: of God's children in this country. And it gets to

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Speaker 13: the heart of the matter, which is inequality and my

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Speaker 13: belief that every New Yorker should have what they need

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Speaker 13: to live a dignified life.

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Speaker 7: From Donnie campaign on freezing rent, making buses free, and

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Speaker 7: opening city run supermarkets. Barring any surprises, Mamdanni will face

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Speaker 7: the city's current mayor, Eric Adams, who is running as

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Speaker 7: an independent in November.

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Speaker 13: Is a snake oils salesman.

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Speaker 7: He was say and do anything to get elected. Former

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Speaker 7: Governor Cuomo has conceded the primary, but he's not out

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Speaker 7: of the race just yet. He is now weighing his options,

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Speaker 7: including whether to run as an independent in the general election.

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Speaker 7: Today Marx ten years since the Supreme Court's landmark ruling

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Speaker 7: which granted same sex couples the right to marry in

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Speaker 7: the US. It comes as LGBTQ advocate have worn that

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Speaker 7: under the Court's new conservative majority, which eliminated the right

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Speaker 7: to abortion, marriage equality could also be at risk. The

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Speaker 7: Human Rights campaigns Jonathan Lovetz.

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Speaker 10: The legal setbacks for LGBTQ people, particularly trans people, are

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Speaker 10: deeply troubling. But on the other side, the groundswell of

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Speaker 10: support for our community to protect our rights is louder

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Speaker 10: and growing louder by the day.

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Speaker 7: The Human Rights Campaigns Jonathan lovettz Global News twenty four

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Speaker 7: hours a day and whenever you want it with the

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Speaker 7: Bloomberg News Now, Michael Barn, this is Bloomberg Karen.

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Speaker 3: All right, Michael Barr, thank you time now for the

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Speaker 3: Bloomberg Sports Update. Here's Sean Stashaur John Good morning.

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Speaker 9: Good morning, Karen's been a rough couple of weeks for

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Speaker 9: both the Mets and the Yankees, especially the Mets ten

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Speaker 9: losses and eleven games. They went from a five game

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Speaker 9: division lead down to second place. But for one night

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Speaker 9: of city field and team together against the Braves, who

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Speaker 9: they were zero and five against. It started in the

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Speaker 9: fourth inning. Iswuan Soto won one game.

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Speaker 2: As we go to the bottom of the fourth and

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Speaker 2: he drives.

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Speaker 13: One at deep right center, fail Becos Harris to the wall.

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Speaker 5: It's a hair what pitch the Metsu back in.

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Speaker 14: Front on one?

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Speaker 13: SODA's eighteen come out to be here sn wy.

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Speaker 9: The Sodo blast started a five run inning in three

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Speaker 9: innings later, Sodo homeward again, his fourth multi home run

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Speaker 9: game this season. Mets beat Atlanta seven to three. The

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Speaker 9: series ends tonight. The Yanks salvage won in Cincinnati seven

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Speaker 9: to one, out hit the Reds thirteen to four. Both

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Speaker 9: Trent Christian and Jason Dominguez had four hits to back

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Speaker 9: Max Freed, who leads baseball with ten wins. Yanks now

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Speaker 9: have their first day off in a while. They'll host

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Speaker 9: the A's tomorrow. Red Sox limp home with the five

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Speaker 9: game losing the streak, beating again by the Angels five

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Speaker 9: to two. The Socks struck out fourteen times. Nationals held

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Speaker 9: the three hits, lost one nothing. At San Diego Dukes

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Speaker 9: eighteen year old Cooper Flag second youngest first overall NBA

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Speaker 9: draft pick. Only Lebron James was younger, and that was

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Speaker 9: by eight days. What's so different about Flag? He'll be

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Speaker 9: the first NBA player born in raised in the state

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Speaker 9: of me.

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Speaker 15: It means a lot to me. You know, to have

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Speaker 15: the support of the whole state, and you know, I

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Speaker 15: know how, and you showed up today and supported me

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Speaker 15: at some of the draft parties back home, So it

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Speaker 15: feels amazing. No, I can inspire younger kids. I mean

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Speaker 15: I was in their shoes really not that long ago.

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Speaker 15: So just to know I can give give those kids

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Speaker 15: those feelings and have the whole state behind me, it

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Speaker 15: means a lot.

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Speaker 9: Headed to the Dallas Mavericks San Antonio, with a second

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Speaker 9: book pick, took Dylan Harper from Rutgers, and another Duke freshman,

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Speaker 9: com Ki Nipple, went forth to Charlotte, and the other

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Speaker 9: Rutgers freshman, a'st Bailey went fifth to Utah Nets at

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Speaker 9: five first round picks. Then Nicks will get to make

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Speaker 9: a pick tonight in the second round. John Stasheware, Bloomberg Sports.

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Speaker 13: Karen Nathan.

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Speaker 1: Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 9: Good morning.

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Speaker 2: I'm Nathan Hager. President Donald Trump has left the NATO

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Speaker 2: Leader summit in the Hague after sealing a commitment from

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Speaker 2: member states to raise defense spending two levels many thought

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Speaker 2: was impossible just months ago, five percent of GDP.

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Speaker 4: I think we had a great victory here. This is

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Speaker 4: an ongoing project. This is the safety of Europe, the

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Speaker 4: safety of the world.

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Speaker 2: President Trump spoke there to post some news conference heard

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Speaker 2: live on Bloomberg Radio this morning. We're joined by Bloomberg

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Speaker 2: News senior writer Stephanie Baker. Stephanie, good morning. Of course,

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Speaker 2: five percent target would be a massive change to Europe's

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Speaker 2: security architecture. Can member states get there given the challenges

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Speaker 2: that so many of them had just getting to the

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Speaker 2: current two percent goal?

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Speaker 14: Good morning, good morning, You're right, five percent would effectively

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Speaker 14: mean hundreds of billions of euros of additional defense spending,

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Speaker 14: but I think it's clashing with fiscal realities. Many European

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Speaker 14: countries just don't have the scope or the fiscal room

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Speaker 14: to spend anywhere near that kind of money. And remember

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Speaker 14: the five percent target is actually three point five percent

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Speaker 14: on actual defense spending, one point five percent allocated to

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Speaker 14: defense related infrastructure. So it's all a bit fuzzy, and

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Speaker 14: France and Italy have opted not to use the EU

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Speaker 14: rules that would allow them to take on additional debt

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Speaker 14: to finance that spending. I think the real leader here

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Speaker 14: will be Germany, which has promised really ambitious additional new

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Speaker 14: spending on defense and infrastructure, and we'll probably pull ahead

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Speaker 14: and be a real leader on that.

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Speaker 2: Well, we heard the criticism from President Trump with Spain

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Speaker 2: openly talking about the challenges. It says that they could

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Speaker 2: face reaching that five percent target, talking about maybe making

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Speaker 2: them spend twice as much on a trade deal. Of course,

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Speaker 2: Spain's part of the EU. But could this affect this fuzziness?

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Speaker 2: Could this effect what's going on in a trade talks

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Speaker 2: between the US and the EU?

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Speaker 14: It could, And for countries like Spain, they'll have to

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Speaker 14: choose whether or not they want to spend it potentially,

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Speaker 14: you know, tens of billions more on defense or lose

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Speaker 14: maybe single digit billions on a bad trade deal with

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Speaker 14: the US. And I think that's the kind of calculation

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Speaker 14: many will be making. The NATO summit was really designed

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Speaker 14: to deliver Trump a victory by agreeing to that headline

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Speaker 14: five percent figure while getting Trump to reaffirm the US

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Speaker 14: commitment to NATO's Article five that he would the US

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Speaker 14: would come to the defense of any NATO country that

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Speaker 14: was attacked. And it achieved that goal. But I think

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Speaker 14: they fledged the numbers and that will come back to

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Speaker 14: haunt them down the road if they are unable to

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Speaker 14: really deliver that kind of spending.

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Speaker 2: What does that mean going forward when it comes to

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Speaker 2: putting continued pressure on Russia to ease back on the

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Speaker 2: fighting between Ukraine and come back to a negotiating table.

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Speaker 14: It's incredibly important, and I think that's one of the

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Speaker 14: things that was sort of sidelined at the NATO summit.

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Speaker 14: Ukraine needs a new package from the United States for

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Speaker 14: military aid. What the Biden administration had approved before he

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Speaker 14: left office is now coming to an end, and Ukraine needs,

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Speaker 14: in particular, patriot missile defense systems to ward off further

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Speaker 14: Russian air attacks. Trump said at the summit that he

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Speaker 14: would look at it, but we are very far from

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Speaker 14: any kind of deal that would provide additional serious military

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Speaker 14: aid to Ukraine. And in fact, a lot of these

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Speaker 14: European countries are counting their military aid to Ukraine as

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Speaker 14: part of that NATO pledge, which is again another kind

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Speaker 14: of fudging of these sort of fuzzy numbers, and they're

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Speaker 14: using the proceeds from Russian frozen assets to finance it.

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Speaker 14: So there's a real lack of money here, and I

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Speaker 14: think that is the central problem. Ukraine needs really serious

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Speaker 14: additional military aid to ward off Russian attacks because Putin

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Speaker 14: does not seem to have any appetite to come to

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Speaker 14: the table for a seafire.

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Speaker 2: Just thirty seconds left. Does all this make it more

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Speaker 2: difficult for Europe to put further sanctions pressure on Russia?

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Speaker 1: Well.

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Speaker 14: EU leaders are meeting today to approve their eighteenth package

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Speaker 14: of sanctions, and it's expected to widen restrictions on Russian

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Speaker 14: banks and Russia's shadow fleet of oil tankers, a proposal

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Speaker 14: to lower the price cap on Russian oil, which is

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Speaker 14: set at sixty dollars a barrel to forty five dollars,

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Speaker 14: a bill that seems dead in the water now because

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Speaker 14: Trump opposed that, even though most EU leaders were supportive

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Speaker 14: of it. There does need to be a more robust

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Speaker 14: package of sanctions to really drive down Russia's oil revenues

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Speaker 14: to really impact Putent's ability to finance the war.

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Speaker 12: Ray