Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning.
Speaker 3: I'm Nathan Hager and I'm Lisa Matteo. Here are the
Speaker 3: top stories we're following today.
Speaker 4: Lisa, we begin this morning with a tense situation in
Speaker 4: Los Angeles. Anti deportation protesters have been clashing with law
Speaker 4: enforcement for three days, in some cases committing violence and
Speaker 4: burning cars. LA Police Chief Jim McDonald says the demonstration
Speaker 4: started peacefully, but things have gotten worse.
Speaker 5: This violence that I've seen is disgusting. It's escalated now
Speaker 5: since the beginning of this incident. What we saw the
Speaker 5: first night was bad. What we've seen subsequent to that
Speaker 5: is getting increasingly worse and more violent.
Speaker 4: Los Angeles Police Chief Jim McDonald spoke after President Trump
Speaker 4: deployed more than two thousand National Guard troops to LA
Speaker 4: over the weekend. He says he would not wait for
Speaker 4: Governor Gavin news to ask for the reinforcements.
Speaker 6: That's a new thing.
Speaker 7: Bit and worse.
Speaker 4: You know what they throw at him, right and when
Speaker 4: that happens, I have a little stacred.
Speaker 2: They say they spit, we hit bud.
Speaker 4: President Trump's move has local leaders saying it's only inflaming
Speaker 4: the situation. Here's Los Angeles Mayor Karen Bass.
Speaker 6: We're working with officials, we're organizing resources.
Speaker 3: But what we're seeing in Los Angeles is chaos that
Speaker 3: is provoked by the administration.
Speaker 4: And California Governor Gavin Newsom says he has formally asked
Speaker 4: the White House to rescind the quote unlawful deployment. He
Speaker 4: also says he plans to sue the administration over the action.
Speaker 3: Nathan Back here in Washington, Republican leaders are trying to
Speaker 3: keep President Trump's tax and spending cut built on track
Speaker 3: after the President's very republic falling out with Elon Musk.
Speaker 3: How Speaker Mike Johnson is making it clear which side
Speaker 3: he's on.
Speaker 6: Elon's number one responsibilities to save his company. The President
Speaker 6: and I have the responsibility to save in the country
Speaker 6: and that's what this bill does. And we're really excited
Speaker 6: and proud of this product and we're going to get
Speaker 6: it delivered.
Speaker 3: How Speaker Mike Johnson spoke on ABC's This Week Has
Speaker 3: Heard Every Sunday on Bloomberg Radio. Senate Republicans appear to
Speaker 3: be shrugging off Elon mus harsh criticism that the bill
Speaker 3: will add to the deficit. The Senate Finance Committee is
Speaker 3: expected to strip out some medicaid and Medicare cuts from
Speaker 3: the House version of the bill that would have added
Speaker 3: to its cost savings.
Speaker 7: Well.
Speaker 4: To turn to the latest developments over global trade, the
Speaker 4: US and China are set to resume negotiations in London
Speaker 4: today following a phone call between leaders President Trump and
Speaker 4: Si Jinping. We get the latest from Bloomberg's Katya Dmitrieva.
Speaker 8: There's certainly a lot more optimism in terms of what
Speaker 8: could come out of these talks, and there was even
Speaker 8: last year, and that's before the call happened. These talks
Speaker 8: are really kind of a resetting, is how I would
Speaker 8: put it, and how perhaps investors and economists are looking at.
Speaker 2: It, because you know, there was sort of a back
Speaker 2: and forth.
Speaker 8: There was some lobbying of accusations, the US imposed some
Speaker 8: more restrictions on China. There was this whole issue of
Speaker 8: Chinese students coming to the US. How these talks are
Speaker 8: sort of a way of resetting that after this call
Speaker 8: happened last week between the two leaders.
Speaker 4: Bloomberg's coat Toe Dimitrievis says the toks aim to resolve
Speaker 4: issues such as rare earth exports, tariffs and restrictions on
Speaker 4: advanced technology and Nathan.
Speaker 3: Those talks between the US and China come as the
Speaker 3: latest data shows Chinese exports to the US saw the
Speaker 3: worst drop in more than five years. Official figures from
Speaker 3: AHOW shipments for America fell by thirty four percent.
Speaker 4: All right, let's turn to markets now. Lisa's stocks are
Speaker 4: at their highest level since February as investors away to
Speaker 4: key bond sale and a pair of inflation reports.
Speaker 2: Let's bring in Bloomberg, John Tucker for Mare, John and Nathan.
Speaker 9: The S and P five hundred in fact closed Friday
Speaker 9: just two point three percent below its February record. Since
Speaker 9: it's April low, the index has climbed twenty percent over
Speaker 9: At Goldblin's Sacks, Sharmbill says investers seem to have thrown
Speaker 9: caution into the wind.
Speaker 3: The risks are still very much that and the market
Speaker 3: seems at the moment prepared to look through those risks.
Speaker 9: MO strategists that City Group meantime at their year in
Speaker 9: s and P five hundred target to sixty three hundred.
Speaker 9: Investors looking for fresh catalysts will have several events this week.
Speaker 9: There's those US China trade talks in London Wednesday. We're
Speaker 9: to get a reading on inflation with the consumer pricing
Speaker 9: index along with the producer price data the following day,
Speaker 9: and that will long for Federal Reserve officials a final
Speaker 9: look at inflation ahead of their policy meeting next week.
Speaker 9: On Thursday, the Treasury is set to sell twenty two
Speaker 9: billion dollars of thirty year government bonds that will be
Speaker 9: closely watched as a tested market sentiment as investors push
Speaker 9: back against growing government debt.
Speaker 2: All right, thank you, John Plenty of company news.
Speaker 3: This morning, we have Apple kicking off at annual Worldwide
Speaker 3: Developers Conference in Coopertino.
Speaker 2: Bloomberg's Tom Busby, how's a briview?
Speaker 10: The highlight is expected to be a sweeping redesign of
Speaker 10: the software interfaces for the iPhone, iPad, Mac Apple TV,
Speaker 10: the Apple Watch on CarPlay, along with some tweaks to
Speaker 10: the Vision Pro mixed reality headset. It's also rebranding at Software,
Speaker 10: shifting from the current number based naming to a year
Speaker 10: based system, so next year's update to the current iOS
Speaker 10: eighteen will be iOS twenty six. There is little chance, though,
Speaker 10: of any significant updates to its long delayed AI product
Speaker 10: Apple Intelligence. The conference runs through this Friday, June thirteenth.
Speaker 4: All right, Tom, thanks, and Bloomberg News has learned that
Speaker 4: Meta Platforms is in talks to make a multi billion
Speaker 4: dollar investment in AI startup Scale AI, valued at over
Speaker 4: ten billion dollars. The funding would rank among the largest
Speaker 4: ever for a private company. And we get more from
Speaker 4: Bloomberg Technology reporter Sarah Fryar.
Speaker 1: Scale has become really essential in the generative AI boom,
Speaker 1: in part because what they specialize in is data quality.
Speaker 1: They have a mixture of human and AI fixing of data,
Speaker 1: where they're labeling images, they're categorizing things, they're improving models
Speaker 1: through this accuracy and data accuracy is a really important
Speaker 1: when you're trying to build the next big Elella.
Speaker 4: Bloomberg Sarah Fryar says Scale AI generated about eight hundred
Speaker 4: and seventy million dollars in revenue in twenty twenty four
Speaker 4: and expects two billion this year.
Speaker 3: All right, it's time now for a look at the
Speaker 3: other stories making news in New York and around the
Speaker 3: world that We're joined by Bloomberg's Michael bar Good morning, Michael, Good.
Speaker 7: Morning, Lisa. A new Trump administration travel band takes effects
Speaker 7: starting today, banning citizens of twelve countries from visiting the US.
Speaker 7: Travelers from seven others would face restrictions. Former Department of
Speaker 7: Homeland Security official Elizabeth Newman expects legal challenges.
Speaker 11: There will be many, many challenges some of the new
Speaker 11: countries that have been added. It would be wise of
Speaker 11: the administration to disclose some of the evidence that they
Speaker 11: have to demonstrate that they have these deficiencies.
Speaker 7: Former Homeland Security official Elizabeth Newman tails ABC. The band
Speaker 7: includes Afghanistan, Mean Mar, Haiti, Iron, Libya, and Yemen. Israeli
Speaker 7: forress have stopped a Guzza bound aid boat and detained
Speaker 7: Greta Tunberg and other activists on board. The Freedom Flotilla Coalition,
Speaker 7: which had organized a voyage to deliver humanitarian aid to
Speaker 7: the Gaza Strip and protest Israel's blockade and wartime conduct,
Speaker 7: said the activists had been kidnapped by Israeli forces. Activists
Speaker 7: spoke as IDF boarded the boat.
Speaker 12: Everyone here is said, no one is wounded right now.
Speaker 12: It's very important that no one is wounded until the
Speaker 12: time they ordered our boat.
Speaker 13: Okay.
Speaker 7: Israel said the passengers would return to their home countries
Speaker 7: and the aid would be delivered to Gaza through established channels.
Speaker 7: There is tropical storm activity off Mexico's Pacific coast. Bloomberg
Speaker 7: Media Religious Craig Allen has the latest.
Speaker 14: Barbara has sixty five mile per hour winds and increasing,
Speaker 14: but is moving away west northwest at about ten miles
Speaker 14: per hour. So the Mexico coastline may wind up with
Speaker 14: a flooding two to four inches of rain and rough
Speaker 14: surf and swells right along the coastline in the vacation
Speaker 14: areas in the mountainous terrain.
Speaker 7: Bloomberg Media Religions Craig Allen Globe twenty four hours a
Speaker 7: day and whenever you want it with Bloomberg News Now.
Speaker 7: I'm Michael Barr. This is Bloomberg Lisa.
Speaker 2: Thank you. Michael. Coast to coast on Bloomberg Radio, nationwide
Speaker 2: on Sirius XM, and around the world on Bloomberg dot
Speaker 2: Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 7: Good morning.
Speaker 2: I'm Nathan Hager.
Speaker 4: Three days of protest have gotten more intents over immigration
Speaker 4: raids in Los Angeles. Local leaders are concerned deploying the
Speaker 4: National Guard is further inflaming the situation, but President Trump says,
Speaker 4: LA can expect even more of a show of force
Speaker 4: if the violence continues.
Speaker 2: We're gonna have troops everywhere.
Speaker 8: We're not going to let this happen to our country.
Speaker 3: We're not going to let our country be torn apart
Speaker 3: like it was an to fight and is at open.
Speaker 4: President Trump spoke with reporters on his way to Camp
Speaker 4: David last night. This morning, we're joined by Bloomberg News
Speaker 4: senior editor Bill Ferries just to get an update on
Speaker 4: what's been happening over the last just a few days
Speaker 4: in Los Angeles. Bill, it does seem like the tensions
Speaker 4: have gotten quite a bit worse in just the last
Speaker 4: twenty four hours.
Speaker 12: Yeah, it does. We've had the third day now of
Speaker 12: these anti deportation protesters. We've seen these clashes taking place.
Speaker 12: They have tended to be more peaceful during the day
Speaker 12: and then later in the day getting a little bit
Speaker 12: more violent. There were a number of cars waymo cars
Speaker 12: set on fire as well. And really the escalation of
Speaker 12: the rhetoric between both sides here, between the Trump administration
Speaker 12: and California has really helped fan some of the concerns
Speaker 12: that the violence will continue, or that it might even
Speaker 12: spread to other cities in the state or other states.
Speaker 12: So far, that hasn't really happened so far, thankfully. But
Speaker 12: it is hard to see from the last seventy two
Speaker 12: hours how this de escalates in the coming days.
Speaker 4: And it's also an escalation really between President Trump and
Speaker 4: local leaders as well. Just from the fact that the
Speaker 4: National Guard was deployed over the head of Governor Newsome,
Speaker 4: this kind of takes us into uncharted territory.
Speaker 12: It's almost unprecedented to see this kind of deployment. The
Speaker 12: White House saying that it authorized the deployment of two
Speaker 12: thousand National Guard troops. I think so far we know
Speaker 12: that at least three hundred have been sent into the streets. Usually,
Speaker 12: of course, it's the governor who has control over National
Speaker 12: Guard forces or asked the White House to deploy them.
Speaker 12: I think you have to go back to the civil
Speaker 12: rights era in the sixties to see a federalized National
Speaker 12: Guard force, you know, working in opposition to a governor.
Speaker 12: So how that plays out on the coming days, we'll
Speaker 12: have to see the California side that Mayor Karen Bass
Speaker 12: and Governor Newsom have said that that deployment of the
Speaker 12: National Guard is what is actually escalating tensions on the
Speaker 12: street right now, I don't think those Guard troops are
Speaker 12: going to be going away or back to their home.
Speaker 12: So Monday morning, as that begins in California, we're gonna
Speaker 12: have to see how this plays out again.
Speaker 4: And we've also heard Defense Secretary heg Seth and President
Speaker 4: Trump support the idea of bringing in Marines from Camp
Speaker 4: Pendleton if things continue to escalate, how seriously to take
Speaker 4: that potential threat, you know, that would take.
Speaker 12: It to another level as well. I mean, of course,
Speaker 12: there is this law from the late eighteen hundreds of
Speaker 12: Possecomatatis law that says you really you cannot deploy active
Speaker 12: duty US forces on US soil in that way, So
Speaker 12: it would be an unprecedented move if the Trump administration
Speaker 12: tried to go in that direction. So far, we haven't
Speaker 12: seen that full two thousand troops that were authorized by
Speaker 12: the White House out there. I would expect that would
Speaker 12: be the next step if this does continue to escalate.
Speaker 4: And while we see this fight now between President Trump
Speaker 4: and local leaders in California, it seems as though Republicans
Speaker 4: are trying to get past the fight between President Trump
Speaker 4: and Elon Musk over the big beautiful bill. Where does
Speaker 4: that stand in our last minute bill?
Speaker 12: Yeah, the bill is I listen. The Senate Finance Committee
Speaker 12: is expected to put out their draft of that legislation
Speaker 12: anytime early this week, most likely. You know, we know
Speaker 12: what the sticking points are going to be. The salt
Speaker 12: of state local tax deduction is going to be a
Speaker 12: big part of that. That puts a three hundred and
Speaker 12: fifty billion dollars hale in the budget that the Senate
Speaker 12: Republicans may be looking to tweak. It's also those changes
Speaker 12: to Medicaid that some Republicans have been speaking out against
Speaker 12: ever since that legislation passed the House. It's not going
Speaker 12: to be the same bill as the House passed. That
Speaker 12: means it will have to go back to the House.
Speaker 12: It's going to be a lot of very tough negotiating
Speaker 12: to get to the President's desk by July fourth.
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Speaker 2: Stay informed all day long. I'm Nathan Hager and I'm
Speaker 2: Lisa Matteo.
Speaker 3: Join us again tomorrow morning for all the news you
Speaker 3: need to start your day right here on Bloomberg Daybreak