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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Can we begin with tensions flaring on Capitol Hill between President Trump and Senate Republicans. President went into lunch with members of his own party, upset over a vote in the Senate rebuking his war with Iran. The President refused to sign a bipartisan housing bill that Congress had just passed ahead of the meeting. Afterward, the President put a positive spin on it.
I think we had a really great meeting, and we're very proud of the party. We like our leader, we like everybody really in the room. I don't like a few people, but that's okay. I think you know who they are.
President Trump spoke to reporters on Capitol Hill after the launch Bloomberg. Stephen Dennis reports Republican Senator Bill Cassidy drew the President's anger for voting for the War Powers Resolution.
The way Cassidy described it as Trump asked who could possibly have voted for this thing? And cassi said, do you want the real answer? And Trump said yes, And he said, well, you know, we haven't been briefed. You said this war was going to last four weeks. It's lasted four months. None of your original aims have been met, Bloomberg.
Stephen Dennis reports Senator Cassidy got a White House briefing on Iran after the launch from Vice President Jade Vance. By the end of the day, Cassidy said he shouldn't have lost his cool.
I lost my temperament. That's not appropriate. It's the Irish eat.
Last night, Senator Cassidy and fellow Republican Ran Paul reversed their votes and rejected a separate war powers resolution. Paul posted on x that he voted president to give the president more space and leverage to negotiate a lasting piece Nathan All.
This provided the backdrop as President Trump took to the National Mall for a rally marking America's two hundred and fiftieth anniversary tonight.
As we stand on the edge of our two hundred and fiftieth year of independence, I am thrilled to declare that America is back.
And the President used his speech to defend the Around War.
For the first time in three thousand years, we are finally going to have peace in the Middle East.
We're gonna have peace in the Middle East.
Since your agreement, the stock market and your four oh one case are skyrocket upward, an oil price that are plummeting downward.
Today it hit a new low.
And the world is a much safer place.
President Trump's speech kicked off a sixteen day Great American State Fair on the Mall. Several artists pulled out of the event, saying it was more political than they'd been led to believe, so the President said he'd headline the festivities himself well.
Turning overseas, Karen, the European Union is signing off on its trade deal with the US. Let's go to London get the latest with Bloomberg's ewen pods. Good Morning, Ewan, Nathan, and Karen.
It has taken almost a year of talks, but EU member states have finally approved the European Union's trade deal with the United States, under the terms that e will scrap levies on US industrial goods and some agricultural products in exchange for a fifteen percent tariff ceiling on its
exports to the US. The agreements of the twenty seven member countries comes just nine days before President Trump's deadline good news for strained transatlantic relations, but plenty of disagreements remain, not least on issues including metals, tariffs, and tech regulation. In London, I'm youwing Pots.
Bloomberg Radio Right New and thank you. The deal comes a day after NATO's Secretary General Mark Ruda met with President Trump in the Oval Office. He was trying to ease the President's anger over the reluctance of alliance and nations to help with the campaign against Iran. Rut had displayed posters highlighting how much more money NATO nations have spent on defense since Trump took office. After the meeting, Ruda spoke with Bloomberg's Balance of Power.
But I think it's important is to be fair, and fairness dictates that this president's really doing a huge amount of work to get NATO Embeta shape. You had a big success last year, Indy hag with the five percent spending commitment.
And NATO Secretary General Mark Rude told the Bloomberg's Balance of Power. President Trump is committed to the alliance and will play a critical role at a meeting of NATO leaders set for next month in Turkey. Catch the full conversation on our new video hub on Bloomberg dot Com and the Bloomberg Business app.
Let's turn to markets now, Karen. The AI trade is back in play. Nasdaq futures are up more than two percent following earnings from Micron Technology. That stock is up sixteen and a half percent pre market. The largest US maker of computer memory chip says its revenue will be approximately fifty billion dollars in the fiscal fourth quarter. That's five zero and it's almost seven billion more than analyst estimated. Gene Munster is managing partner at Deepwater Asset Management.
The street is start going to get more comfortable at growth rates for the hyperscalers and the broad capax of forty percent plus. And what that means is that these companies are going to continue to grow faster for longer than most investors expect. And despite all this skittishness within the market, this is just an over just a resounding endorsement that we are, in fact earlier than the most believe in the build up.
It's Gene Unster of Deepwater Asset Management. Micron has also secured sixteen strategic customer agreements averaging three years in length.
Napan Qualcom also giving a lift to chip stocks. Those shares up twelve and a half percent in early trading and its investor Day. The company forecast sales and more than fifteen billion dollars a year by fiscal twenty twenty nine in the booming market for AI components and data centers.
Shifting focus down from big tech to big banks. Karen, those stocks will be in focus today after they passed the Federal Reserve stress test. Bloomberg's Alexis Christoffers joins us in New York with the details of access.
Good Morning, Nathan. The FEDS exam, which was an outgrowth of the two thousand and eight financial crisis, showed that all of the banks examined would maintain enough capital to withstand a hypothetical economic downturn. As a result, JP Morgan, Chase, Goldman, Sachs, City Group, Morgan Stanley, and Wells Fargo all increased their dividend payouts. Bank of America says it will make its
next quarterly dividend announcement after its July board meeting. JP Morgan also authorized a new fifty billion dollars share repurchase program. The nation's six biggest banks paid out more than one hundred and forty billion dollars in dividends and buybacks. Last year, the firms collectively posted their largest annual profits since twenty twenty one, on the back of record trading revenue. In New York, Alexis Christophers Bloomberg Radio.
Right, Alexis, thank you. It's also a big morning for economic news. We get the FEDS preferred reading on inflation the Personal Consumption Expenditures price Index for the month of May. Forecasters expected data to show acceleration on both a monthly and year over year basis.
Well.
Karen Brent, oil is erasing all its wartime gains after flows through the Strait of Hormo was ramped up following progress on a US ron p steel the global benchmark dropped below seventy two forty eight a barrel that was its pre war closing price on a closing basis West Texas Intermediate. It's also near its pre war price of sixty seven oh two a barrel after it rallied to a conflict peak of just above one nineteen in March.
As for what we're paying at the pump, the average price of gasoline has dipped to just under three ninety two a.
Gallon time now for a look at some of the o their stories making news in New York and around the world. And for that we're joined by Bloomberg's Michael Barr. Michael, Good Morning, Good morning Karen.
Two massive back to back earthquakes in Venezuela have killed at least thirty two people and injured more than seven hundred. The quakes toppled dozens of buildings and devastated the country's main international airport. The magnitude seven point two earthquake on Wednesday evening was followed a minute later by an even stronger earthquake measuring seven point five, with its epicenter west of Caracas. Associated Press reporter Juanarez, who lives in Caracas, says it's the strongest he's felt.
Classes fell to the floor, neighbors are coming down to the streets.
Acting Venezuelan President Delsi Rodriguez said more casualties were expected, with the country declaring a state of emergency. The US says it is sending resources in support. France's average daily temperature reached an all time high of one hundred and five as Europe's heat wave continues. It is so hot tourist sites have shut down. This Paris visitor says it would be better if museums open in the morning and then close during the hottest part of the day.
You would rather close it like before the like twelve, for example, and closed until the five and then open it again so people can visit it in the innion when it's not that hot outside.
Daytime high has reached one hundred eleven degrees in Pyo in the West. The head of New York City's transit system is standing by his decision not to sign an agreement on Penn Station's renovation. MTA Chief operating Officer jen O. Lieber says he does not want to enter a deal with President Donald Trump without protections. The dispute comes as President Trump Wednesday asked Congress to direct one billion dollars toward renovating Penn Station. Global News twenty four hours a
day and whenever you want it with the Bloomberg News. Now. I'm Michael Barr, and this is Bloomberg Karen.
Thanks Michael, all time now for our Bloomberg Sports update, and for that we bring in John stash Hour.
Thanks Karen's doctor. Teams in the Al Central have been playing all weight. The White Sox won the first two, but the Guardians beat Chicago for three intendings to go back in the first place. At the World Cup in Vancouver, Switzerland beat Canada two to one. Switzerland wins the group. Canada advances as well, and so does Bosney and Herszegovina.
Well.
The three to one went over Qatar and they could be the US's opponent in the knockout round. The United States team plays Turkey eight tonight. It's a meaningless game for both teams. That's a Bloomberg Sports update.
Stay with us. More from Bloomberg day Break coming up after this.
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 Will. Tensions may have reached a boiling point between President Trump and Senate Republicans over the war where they Iran. Now, the Senate has reversed course on a war powers resolution, but Republican Senator Bill Cassidy says he doesn't regret speaking his mind.
The American people need to know more than we are being told. The Senate needs to know, and it does not appear, although I don't know for sure that the course of this is going the way that we were told.
That was Senator Cassidy after a closed door lunch on Capitol Hill with the President and a briefing later at the White House. Joining us for more is Bloomberg DC Breaking News editor Alexander Pearson and alex By all accounts, it sounded like things got pretty heated behind closed doors on Capitol Hill. Just how tense was it?
Good morning, Good morning, Nathan. Yeah, you're right, it was a very tense closed door meeting yesterday at the Capitol. What's interesting is it was originally thought to be a discussion about housing bill that Trump had not given the signature to, but actually then became sort of a shouting match between Trump and for senators, in particular Bill Cassidy about them voting for a War Powers Act on Tuesday.
So they crossed the aisle. They voted with Democrats for this measure that essentially called for the war with Iran to end or for the White House to seek congressional authorization to continue it. Trump was opposed to the measure naturally, and was very very angry with the Senators and that very much came to the four yesterday in this meeting. We have from from Senator Cassidy there, who really spoke
up to the president. What is interesting is that later on in the day another vote was was had on this and it was reversed. So Senate Republican leadership were able to essentially signal to the White House that they've been able to fall back in line with the White House's wishes. But it certainly was a very tense state between Hill Republicans and the White House.
So falling back in line, but does that sort of paper over the concerns that Cassidy and presumably others may have raised at this meeting about the progress that's being made toward a more permanent piece deal with Iran.
Doesn't it p to be, you know, completely papered over there? There's still lingering concerns about it. Cassidy did say after his meeting at the White House that you know, some of his concerns were allayed and for now they seem to be falling in line. But yeah, under the surface, there certainly are concerns about where the negotiations are heading.
Just given the uncertainty about the future arrangement for Homus, what Iran will be willing to agree to, how Iranian funds might potentially be unfrozen, and so this topic is unlikely to now be a closed one. We're likely to see more tensions in the future if the White House, at least from the perspective of certain senators, is not more forthcoming about where the negotiations are heading.
Now, you mentioned that the President canceled plans to sign this bipartisan housing bill that I think Republicans were hoping to be able to tout as a way to alleviate many of American voter's economic concerns heading into the November midterms. What's the status of that housing bill?
Now?
Yeah, that's right. So President Trump blindsided congressional leadership yesterday by announcing on the hours before he was set to sign this bill that he would not sign it. His reasoning was he wanted a separate build of a voter ide build known as the Save America actively passed first.
And the issue now is that he's withheld a signature from the housing bill, but it will actually pass into law after ten days even if he does not sign it, and he well, he could vote Vito it as well, and that would send it back and that could make things a little bit awkward for the Republicans on the Hill because they then have to vote again for it,
you know, positions of the White House. But House Speaker Mike Johnson said yesterday that he believes President Trump will sign it, and it does seem likely that in some form it will pass eventually.
Interesting to have all these cross currents alex ahead of the rally that President Trump publicized, you know, days before all these tensions and was just held last night on the National Mall in prime time. What's the message that came out.
Of that, Yeah, very much a sort of classic Trump rally. He you know, touted the return of America, you know, under his leadership, and he he did address the war with Iran, defending you know, his policy on that, saying it was obviously an important war to ensure they wouldn't get nuclear weapons. But he also then defended the White
House in terms of certain affordability concerns. So gas prices have risen quite considerably in the US as a result of the war, you know, he acknowledged that, but then said now that it's over, those will be coming down very quickly and should hit you know, pre war levels very soon. And so for him, you know, the message
was very much there's nothing to really worry about. The wars over and as we head towards the midterms, you know, affordability will will not be you know, a major issue for voters.
This is Bloomberry Daybreak, your morning podcast and the stories making news from Wall Street to Washington and beyond.
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