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