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

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, we begin with the latest developments in the spat

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Speaker 3: between two of the most powerful people in the world.

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Speaker 3: There are signs this morning the rift between President Donald

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Speaker 3: Trump and billionaire Elon Musk maybe easing. Bloomberg's John Tucker

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Speaker 3: begins our team coverage this morning.

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Speaker 4: John, Good morning, and good morning.

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Speaker 5: Nathan. Politico is reporting White House aides have scheduled a

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Speaker 5: call with Musk today to try and cool things off.

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Speaker 5: President Trump with the reporters yesterday, have this to say us.

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Speaker 5: The Musk birl bands headed for the rocks.

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Speaker 6: I'm very disappointed in Elon. I've helped Elon a lot.

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Speaker 6: Elon and I had a great relationship. I don't know

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Speaker 6: if we will anymore. I was surprised because you were here.

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Speaker 6: Everybody in this room practically was here, as we had

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Speaker 6: a wonderful SENDO.

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Speaker 4: He said wonderful things about me.

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Speaker 6: You couldn't have nicer, said the pest snake. He's warned

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Speaker 6: the hat Trump was right about everything.

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Speaker 5: Or The relationship started to rupture when Musk called Trump's

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Speaker 5: signature tax and spending bill a disgusting abomination, and things

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Speaker 5: really got ugly yesterday. Musk called Trump an ingrate and

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Speaker 5: suggested the president would have never won the election without

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Speaker 5: his help. A Trump, in turn, proposed cutting off Musk's

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Speaker 5: lucrative government contracts. Go ahead, make my day. Musk post

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Speaker 5: it on Axe in response to Trump's threat. Later, he

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Speaker 5: responded yes to a Twitter users suggested that the president

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Speaker 5: be impeached. He then suggested the president was withholding the

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Speaker 5: release of files related to pedophile Jeffrey Epstein because they

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Speaker 5: incriminate the president. You New Yorkcome, John Tucker, Bloomberg Radio, All.

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Speaker 2: Right, John, thank you well. Elon Musk also appears to

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Speaker 2: be walking back a threat that could have put work

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Speaker 2: on the International Space Station at risk, and bloomberge Gina

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Speaker 2: Servetti continues our team coverage.

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Speaker 7: Elon Musk had threatened to decommission SpaceX's in spacecraft. That's

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Speaker 7: after President Trump posted that the government could save billions

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Speaker 7: of dollars by canceling Musk's federal contracts. Dragon is SpaceX's

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Speaker 7: primary vehicle for sending people and cargo into orbit, and

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Speaker 7: it's helping NEWA maintain a steady presence at the space

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Speaker 7: station until it's retired in twenty thirty. It's unclear how

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Speaker 7: serious Musk was about decommissioning Dragon. It's set to launch

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Speaker 7: another four private astronauts to the ISS with Axiom Space

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Speaker 7: next Tuesday. Gina Cervetti, Bloomberg Radio.

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Speaker 4: Hi, Gina, thank you.

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Speaker 3: The feud wiped off thirty four billion dollars from Elon

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Speaker 3: Musk's personal net worth in one day. Tesla shares a

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Speaker 3: loan fell fourteen percent. Ross Gerber is president in CEO

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Speaker 3: of Gerber Kawasaki and was one of Tesla's earliest investors.

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Speaker 4: This is a disaster for Mosque.

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Speaker 8: I don't know if I can spin it in a

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Speaker 8: positive way, because it's just so beyond any intelligent businessman's

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Speaker 8: behavior would be. I can't imagine after putting Trump in there,

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Speaker 8: that he would then turn Trump into an enemy of

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Speaker 8: all things because he's still the president of the United States.

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Speaker 4: That was Tesla investor Ross Gerbert.

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Speaker 3: The selloff marked the second largest loss ever in an

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Speaker 3: individual's net worth, according to Bloomberg's Billionaires Index. Tesla shares

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Speaker 3: this morning are recovering. They're up more than five percent.

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Speaker 3: In pre market trading.

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Speaker 2: Nathan Mole, the public spat with Elon Musk may be

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Speaker 2: cooling off. The Trump administration is not letting up in

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Speaker 2: his fight with Harvard University, but it's taken a legal

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Speaker 2: setback on that front. A federal judge in Boston has

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Speaker 2: given the university a temporary reprieve from the president's ban

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Speaker 2: on international students entering the US to study there. Judge

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Speaker 2: Ellison Burrows says Harvard would face immediate and irreparable injury

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Speaker 2: if the band took effect, and she set a hearing

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Speaker 2: for June sixteenth.

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Speaker 3: Well, Karen, Tensions appear to be easing between the US

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Speaker 3: and China. President Trump and Chinese President she Jinping have

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Speaker 3: agreed to resume trade talks after months of stalled negotiations.

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Speaker 3: The leader spoke for ninety minutes yesterday. We get more

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Speaker 3: from Bloomberg News senior editor Bill Ferries.

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Speaker 9: Well a lot of I guess positive commentary, especially from

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Speaker 9: the US president, saying that they seem to have reached

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Speaker 9: some kind of a deal or agreement on the issue

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Speaker 9: of rare earth mineral products that seemed to be the

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Speaker 9: issue that was really worrying the US and US companies

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Speaker 9: we know Ford closed a factory for a week last

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Speaker 9: month partly based on its access to those supplies of

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Speaker 9: rare earths. If they can get through that with an understanding,

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Speaker 9: it's probably signals that the negotiations between the two sides

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Speaker 9: over those tariffs are back on track.

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Speaker 4: Bloomberg's Bill Ferries says.

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Speaker 3: President Trump told reporters he's accepted an invitation to visit

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Speaker 3: China and extended his own invitation to President she Nathan.

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Speaker 2: There's new developments this morning on two trade fronts. First,

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Speaker 2: the US and Japan have begun the latest round of

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Speaker 2: trade and go she so, with media reports suggesting Tokyo's

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Speaker 2: delegation is trying to win a reprie from the tariffs

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Speaker 2: by pledging to make more cars in the US and

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Speaker 2: enhancing cooperation on rare earths. Commerce Secretary Howard Latnik met

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Speaker 2: with Japan's top trade negotiator in Washington yesterday. Expectations are

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Speaker 2: growing that Japanese Prime Minister Shagiro is Shiban. President Trump,

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Speaker 2: who held two phone call or two phone meetings recently,

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Speaker 2: may announce a deal when they meet on the sidelines

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Speaker 2: of the summit.

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Speaker 3: And Karen Bloomberg News has learned President Trump and Canadian

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Speaker 3: Prime Minister Mark Karney have been in direct contact trying

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Speaker 3: to reach a trade deal, but still have work to

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Speaker 3: do to find agreement. The President is planning to attend

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Speaker 3: the Group of Seven leader summit in Canada that begins

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Speaker 3: June fifteenth. Some Canadian officials hope to reach a deal

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Speaker 3: to lower or eliminate tariffs before that.

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Speaker 2: Nathan President Trump may be backing away from his push

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Speaker 2: for a quick ceasefire between Russia and Ukraine, and comments

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Speaker 2: heard live on Bloomberg Radio, the President said it might

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Speaker 2: be better to let both sides fight it out a

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Speaker 2: little longer.

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Speaker 6: Sometimes two young children fighting like crazy, they hate each other,

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Speaker 6: and they're fighting in a park, and you try and

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Speaker 6: pull them apart. They don't want to be pulled. Sometimes

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Speaker 6: you're better off letting them fight for a while.

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Speaker 2: At the same time, President Trump is suggesting he might

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Speaker 2: put sanctions on both countries if he thinks the fighting

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Speaker 2: is going on too long. Overnight, Russia launched a wave

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Speaker 2: of Dronan missile strikes on civilian targets in Ukraine after

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Speaker 2: President Vladimir Putin promised to retaliate for last weekend'st drone

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Speaker 2: attack on Russian air basis. The attacks killed at least

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Speaker 2: three people in Kiev and wounded more than a dozen others.

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Speaker 4: Let's turn back to markets now.

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Speaker 3: Karen Futures are higher ahead of this morning's key economic

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Speaker 3: report at eight thirty am. Wall Street Time, investors get

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Speaker 3: the May reading on jobs, and economists are forecasting a

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Speaker 3: gain of one twenty six thousand non farm payrolls. We

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Speaker 3: get a preview from Bloomberg's Michael McKee.

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Speaker 10: He kind of has seen May jobs coming in at

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Speaker 10: the lowest level since last October, a slowdown likely caused

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Speaker 10: by uncertainty over President trump fiscal plans. Other labor market

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Speaker 10: indicators are suggesting weakness. The ADP found just thirty seven

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Speaker 10: thousand jobs created last month. The ISM's manufacturing and services

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Speaker 10: employment indexes showed contraction. For markets to the FED, however,

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Speaker 10: the key won't be the number of new jobs, but

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Speaker 10: the unemployment rate. A shrinking labor supply may keep the

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Speaker 10: jobless rate unchanged for a while. If that's the case today,

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Speaker 10: we should see little change in investors belief the FED

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Speaker 10: is on hold for now. Michael McKee, Bloomberg Radio.

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Speaker 3: All right, Mike, thanks and stay with Bloomberg surveillance at

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Speaker 3: eight thirty am Wall Street time. When those numbers hit

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Speaker 3: the tape, we will break them down live with analysis

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Speaker 3: from former Fed economists Claudia Sam Nathan.

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Speaker 2: Let's check some stocks that are on the move this morning.

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Speaker 2: Shares of Lulu Lemon. They're plunging more than twenty one percent.

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Speaker 2: The athleticware maker is reducing its earnings per share outlook

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Speaker 2: by about two and a half percent for the full year.

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Speaker 2: It also sees sales below analyst estimates. Lululemon is trying

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Speaker 2: to manage supply chains affected by President Trump's trade wars,

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Speaker 2: and its guidance assumes thirty percent tariffs on China and

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Speaker 2: ten percent on other countries, which could cause quote a

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Speaker 2: significant reduction and profitability.

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Speaker 3: We're els watching shares of Broadcom this morning, Karen. They're

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Speaker 3: down more than four percent. The chip supplier to companies

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Speaker 3: like Alphabet and Apple, gave a lackluster revenue forecast for

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Speaker 3: the current quarter. Analyst suggests the artificial intelligence spending frenzy

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Speaker 3: is not as strong as some investors anticipated. Like in Nvidia,

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Speaker 3: Broadcom is seen as a key beneficiary of a surge

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Speaker 3: in AI spending.

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Speaker 2: And Nathan changes are coming at HSBC, Europe's biggest banks,

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Speaker 2: as chairman. Mark Tucker is stepping down to return to

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Speaker 2: insurer AIA as non executive chairman. Tucker has been with

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Speaker 2: HSBC for eight years, and board member Brendan Nelson will

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Speaker 2: step in as interim chair Time now for a look

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Speaker 2: at some of the other stories making news in New

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Speaker 2: York and around the world. For that, we're joined by

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Speaker 2: Bloomberg's Michael Barr Michael, good.

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Speaker 11: Morning, Good Morning Karen. A man accused of yelling free

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Speaker 11: Palestine and throwing molotov cocktails at demonstrators calling for the

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Speaker 11: release of Israeli hostages in Gaza has been charged with

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Speaker 11: one hundred and eighteen counts, including attempted murder. Mohammed Suliman

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Speaker 11: has been jailed since his arrest following Sunday's attack in Colorado.

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Speaker 11: He was advised of the charges during a court hearing

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Speaker 11: in Boulder yesterday. District Attorney Michael Doherty.

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Speaker 12: I am absolutely committed to making sure the defend is

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Speaker 12: fully prosecuted, so obviously making sure he remains in the

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Speaker 12: country is a top priority so that he could be

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Speaker 12: fully prosecuted and held fully responsible.

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Speaker 11: DA Michael Doherty says The counts also include assault in

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Speaker 11: the first and third degrees, use of explosive or incendiary devices,

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Speaker 11: and animal cruelty. The judge in the Sean Diddycombe sex

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Speaker 11: trafficking and racketeering trial issued a warning to the music

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Speaker 11: mogul Combs is not supposed to react with facial expressions

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Speaker 11: to the testimony, but the judge said he caught come

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Speaker 11: homes nodding vigorously and looking at the jury. The judge

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Speaker 11: calling it unacceptable and says if it happens again, he

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Speaker 11: would consider excluding Combs from the courtroom for the remainder

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Speaker 11: of the trial. A Massachusetts community is celebrating after a

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Speaker 11: mill for teen was released from ICE custody. Barcelo Gomes

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Speaker 11: da Silva was taken into custody on his way to

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Speaker 11: volleyball practice nearly a week ago, alongside supporter's family. Attorney

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Speaker 11: Robin Iie spoke outside the courthouse in Chelmsford.

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Speaker 13: It's unlikely to be arrested by Ice again when you've

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Speaker 13: been released on bond already, so I think he'll have

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Speaker 13: that certain level of security, but it's hard to know,

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Speaker 13: and times are changing, and if it's not him, you know,

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Speaker 13: there's so many people in his situation.

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Speaker 11: Attorney Robin Nie says d Silva was picked up by

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Speaker 11: ice last Saturday while driving his father's car to volleyball practice.

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Speaker 11: Homeland Security says agents were targeting his dad, but when

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Speaker 11: they found that the team is in the US illegally,

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Speaker 11: they made the arrest. President Trump told Senate Republicans he

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Speaker 11: is opened to a state and local tax deduction cap

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Speaker 11: lower than the forty thousand dollars in the House passed

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Speaker 11: version of this tax bill. House Speaker Mike Johnson says

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Speaker 11: he's fighting to keep the forty grand camp As is

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Speaker 11: Global news twenty four hours a day and whenever you

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Speaker 11: want it with the Bloomberg News. Now, I'm Michael Barn.

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Speaker 11: This is Bloomberg Karen.

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Speaker 2: All right, Michael Barr, thank you time now for the

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Speaker 2: Bloomberg Sports Update, brought to you by Flushing Bank. Here's

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Speaker 2: John Stashauer, John de morning.

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Speaker 4: Good morning, Karen.

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Speaker 14: The Knicks and they're fans, well, they know all about

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Speaker 14: Indiana pacer comebacks. Late game herobics by Tyrese Halliburton in

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Speaker 14: a series opener, happened at the Garden in the East Finals,

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Speaker 14: and it happened two weeks later in Oklahoma City to

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Speaker 14: begin the NBA Finals. The thunder were cruising along, up

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Speaker 14: Indiana Pacers at the end trailed by a point.

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Speaker 4: Kildas Alexander Spins pulls up.

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Speaker 15: Humbert Alplamar gone go rebound.

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Speaker 4: Nesmith Heati's little chance to win it. Final second still

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Speaker 4: foulest to do. Caliburton looker Cayliverton driving pulls up.

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Speaker 11: Jump shot up.

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Speaker 5: It's gone with three tons of the second verating time out.

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Speaker 6: Okay see Tyres Halliburton does it again.

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Speaker 14: On ABC Indiana one one eleven, one ten. A Halliburton

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Speaker 14: shot gave them their first lead of the night. He

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Speaker 14: not only hit that shot that tied the game with

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Speaker 14: the Knicks, he hit game winners against Milwaukee in the

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Speaker 14: first round and Cleveland in the second game two Sunday

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Speaker 14: in OKC Game two of the Stanley Cup Final.

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Speaker 4: Tonight, Edmonton ough won nothing hosting Florida.

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Speaker 14: The night after the Yankees lost to Cleveland four nothing,

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Speaker 14: they beat the Guardians four nothing a Cody Bellinger two

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Speaker 14: run home at fourth inning, a Jazz Chisholm two run

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Speaker 14: single the seventh, and another brilliant outing by Mac Fried

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Speaker 14: in six innings, he allowed only one hit. First Yankee

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Speaker 14: Red Sox game of the season tonight at the Stadium

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Speaker 14: in La. The Mets led the Dodgers four nothing, five three.

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Speaker 14: In the eighth inning of Brett Baty Era was costly.

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Speaker 14: Dodgers won six y five, game winning hit by the

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Speaker 14: ex Met Michael Konfordo. Jerry Ryan Stor bought the White

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Speaker 14: Sox in nineteen eighty one for twenty million dollars.

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Speaker 4: He's now eighty nine.

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Speaker 14: He's got a deal in place to eventually sell to

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Speaker 14: real estate tycoons justin Eshbia. Aaron Rodgers waited four months

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Speaker 14: but finally has agreed to play quarterback for the Steelers.

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Speaker 14: He'll be in Pittsburgh today to sign his one year contract.

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Speaker 14: He'll be at their mini camp next week. They'll play

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Speaker 14: them men's semifinals today at the French Open. John Stanshehwad Bloomberg.

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Speaker 1: Sports 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 4: Good morning, I'm Nathan Hager.

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Speaker 3: The dust maybe starting to settle from the extraordinary public

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Speaker 3: breakup that broke out just less than twenty four hours

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Speaker 3: ago between President Donald Trump and billionaire Elon Musk, but

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Speaker 3: investors may still be worried about the damage done. Ross

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Speaker 3: Gerber is president of Kerbert Kawasaki and one of Tesla's

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Speaker 3: earliest investors.

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Speaker 8: Institutions and pension funds had written the Board of directors

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Speaker 8: about Elon Musk and reigning in this kind of behavior.

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Speaker 4: And I can't assume that this isn't going to lead to.

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Speaker 8: Massive shareholder lawsuits against the board of directors and Tasla.

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Speaker 3: Ross Gerber with Gerbert Kawasaki there now we're joined by

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Speaker 3: Bloomberg News senior editor Derek Wallbank and Derek, the questions

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Speaker 3: are still rising here when you hear things like impeachment

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Speaker 3: and Jeffrey Epstein and cutting off government contracts, where does

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Speaker 3: this relationship stand now?

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Speaker 15: Good morning, Good morning, Nathan. Look, it was an absolutely

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Speaker 15: explosive period in a relationship that had come to define

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Speaker 15: the second Trump administration, at least its early days. Right,

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Speaker 15: Elon Musk was somebody who donated hundreds of millions of

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Speaker 15: dollars of his own money to electing Donald Trump as

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Speaker 15: well as Republicans up and down the ballot, they were successful.

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Speaker 15: Republicans have unified control of Washington. Musk becomes then the

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Speaker 15: face of Donald Trump's effort to cut government spending. The

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Speaker 15: two of them cite their way through the federal bureaucracy

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Speaker 15: and et cetera, et cetera. And now we're sitting here

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Speaker 15: with Musk talking about Jeffrey Epstein and Donald Trump and

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Speaker 15: all manner of other things. It got very personal, very quickly,

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Speaker 15: i would say, yesterday. And the cost to Musk so

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Speaker 15: far has been staggering. He has he saw Tesla off

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Speaker 15: fourteen percent. His own wealth is closely tied to that,

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Speaker 15: more than thirty billion of his own money on paper gone.

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Speaker 15: It is quite a high cost thing. At the same point, look,

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Speaker 15: Donald Trump wants to pass his one big, beautiful bill

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Speaker 15: that is the centerpiece of his own domestic agenda, and

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Speaker 15: Musk has become the chief antags to.

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Speaker 10: All of that.

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Speaker 3: It's really fascinating to think about, you know, the brand

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Speaker 3: damage that a lot of analysts think was done to

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Speaker 3: Tesla during Elon Musk's work with the government over the

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Speaker 3: one hundred and thirty days he was the public face

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Speaker 3: of the DOGE effort. What kind of brand damage can

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Speaker 3: we be looking at now that it seems as though

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Speaker 3: Elon Musk can't seem to pull himself away from the

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Speaker 3: political fray just.

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Speaker 15: Jet Well, I'll tell you, Nathan, you know, you quite

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Speaker 15: rightly mentioned that Tesla has seen and Musk has seen

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Speaker 15: a fair amount of brand damage among Democrats in the

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Speaker 15: United States, as well as the sort of political left

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Speaker 15: of center abroad you see in places like California, places

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Speaker 15: like Europe, electric vehicle sales rising and Tesla sales falling. Right,

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Speaker 15: So that's a critical context point to start with. And

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Speaker 15: now you come here to a pretty big break with Trump.

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Speaker 15: Musk had sort of run from one to the other,

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Speaker 15: even as the other one and buying Tesla's as fast

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Speaker 15: as the former does. This leave Musk sort of a

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Speaker 15: person without a home. I think, you know, this is

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Speaker 15: a difficult thing to parse because even as you start

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Speaker 15: sitting there totting up the damage, trying to figure out

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Speaker 15: where everything sort of stands there, we get some senses

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Speaker 15: that Musk is open to a cooling off. In fact,

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Speaker 15: it was a remarkable sort of series of events. An

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Speaker 15: account on Musk's x social media platform with fewer than

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Speaker 15: two hundred followers at the time said quote, this is

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Speaker 15: a shame, this back and forth. You're both better than this.

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Speaker 15: Cool off and take a step back for a couple

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Speaker 15: of days. Musk responds, good advice, and then he says

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Speaker 15: he's not going to cancel the Dragon Space program that

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Speaker 15: NASA uses to ferry astronauts up and down to the

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Speaker 15: International Space Station. I mean it's that level of where

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Speaker 15: are we where are we not with that level of impact.

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Speaker 3: Yeah, and you've got to think that it's not just

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Speaker 3: TESLA investors who want to see some kind of cooling

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Speaker 3: off here. Republicans on Capitol Hill as well, right, I mean,

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Speaker 3: they're trying to figure out which way to go on

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Speaker 3: the one big beautiful bill, And I would got I

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Speaker 3: have to think that Republicans are at least hoping to

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Speaker 3: count on some support from Elon Musk for their midterm

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Speaker 3: election efforts.

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Speaker 15: Yeah, Republicans are facing a midterm I think where most

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Speaker 15: of the focus is on control of the US House.

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Speaker 15: They would very much like to have support from Donald

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Speaker 15: Trump's biggest billionaire backer, you know, at their back in

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Speaker 15: that effort. You know, it's a very diverse kind of election.

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Speaker 15: You don't have Trump on the ballot. You really do want,

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Speaker 15: you know, to be able to walk into that campaign

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Speaker 15: being able to defend all the seats you need to

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Speaker 15: defend as well as maybe go on offense as well,

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Speaker 15: so you don't want to alienate Musk. At the same point,

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Speaker 15: Musk is set there on record saying that the cost

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Speaker 15: of this bill, I think the CBO's estimate was something

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Speaker 15: like two point four trillion dollars added to the deficit

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Speaker 15: over the next ten years if it gets faithfully implemented.

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Speaker 15: That is way more nathan than all of the money

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Speaker 15: that DOJE has claimed that it has saved so far,

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Speaker 15: even in its most optimistic telling, and like by orders

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Speaker 15: of magnitude more right, Musk said in another exposit, you know,

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Speaker 15: all of that came at a personal cost and risk

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Speaker 15: to him and his team. So the idea that all

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Speaker 15: of that would be wiped out. You're hearing Musk talk

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Speaker 15: about this, and not just like policy terms, but in

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Speaker 15: deeply personal terms as well.

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Speaker 2: This is Bloomberry Daybreak, your morning podcast on the stories

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Speaker 2: making news from Wall Street to Washington and beyond.

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Speaker 4: I'm Karen Moscow and I'm Nathan Hager.

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Speaker 3: Join us again tomorrow morning for all the news you

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Speaker 3: need to start your day right here on Bloomberg Day

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Speaker 3: Ray