Trump Deploys Marines to LA; US-China Trade Talks Resume

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Good morning.

I'm Nathan Hager and I'm Lisa Mateo. Here are the top stories we're following today.

Lisa, we begin in Los Angeles, where tensions between police and anti deportation demonstrators have stretched into a fourth night. The Trump administration is escalating its response. It is mobilizing seven hundred marines on top of the two thousand National Guard troops that were activated over the weekend. LA Mayor Karen Bass says the move doesn't make sense.

They're guarding the federal building here in downtown, and they're guarding the Federal building in Westwood. That's what they're doing, so they need marines on top of it. I don't understand that. That's why I feel like we are part of an experiment that we did not ask to.

Be a part of.

Now, the State of California is suing to try to stop the deployments. Here's State Attorney General Rob Bonta.

The authority that the President say only allows for the deployment of the National Guard by the president when there's an invasion by a foreign nation, which there's not. When there's a rebellion to overturn the leadership of the United States of America.

Which there is not, and President Trump says activating the guard was a great idea and he's back to comments from White House borders Are Tom Holman, the California Governor Gavin Newsom and other local leaders could be arrested if they interfere with the response.

You can process if you want, you have that person, I read right. But when you cross the line of putting your hands on myself, sir, competing our enforcement operations annoyingly harber cutsiel idealing we're ailing, that's a crime.

Borders Are.

Tom Holman was asked on CNN if Governor Newsom has done anything to warrant arrest yet he said, quote, absolutely not.

And back in Washington, Nathan, debate continues over President Trump's big tax and spending cut bill. House Speaker Mike Johnson says he's trying to get Senate Republicans to do as little as possible to change the forty one thousand dollars cap on state and local tax deductions. House Republicans from high tax states have threatened to block the bill if the Senate waters down the write off, but no Senate

For every US citizen born after December thirty first, twenty twenty four. Before January first, twenty twenty nine, the federal government will make a one time contribution of one thousand dollars into a tax deferred account that will track the overall stock market. In other words, it'll be pegged to an index that we'll pick.

President Trump was joined at the White House by several corporate executives. Dell CEO Michael Dell promised a dollar for dollar match to the accounts for Dell employees, and Robin Hood Market said it will provide technology and capital resources for the initiative.

Lisa, let's turn down to the latest developments in trade negotiations between the US and China. There continuing for a second day in London. Both sides are looking to ease tensions over rare earth supplies and tech exports. Treasury Secretary Scott Bessett and Commerce Secretary Howard Ludnik have been leading the US delegation. Ludnik says the talks have been fruitful. President Trump is echoing that we are.

Doing well with China. China's not easy.

I think we're doing very well. They're over there now.

I'm only getting good reports.

The first day of talks lasted more than six hours, the US signal that's willing to remove restrictions on some tech exports in exchange for assurances that China is easing limits on rare earth shipments, and the.

Trump administration making another sweeping move to reshape the federal government. The Department of Health and Human Services is dismissing all seventeen members of the committee that advises the government on vaccines. Bloomberg's Amy Morris reports from Washington.

Health and Human Services Secretary Robert F. Kennedy Junior said in an opinion piece in The Wall Street Journal that quote a clean sweep is needed to re establish public confidence in vaccine science, but public health officials call this a blatantly political move that will further undermine trust in vaccine safety. The group, known as the Advisory Committee on Immunization Practices reviews the latest data and makes recommendations that

We turn to the markets now, Nathan, Futures while they're little change. As we head into Tuesday session, stocks in the UK hit a record and in the US, Mark Zuckerberg is making a major push into artificial intelligence at meta platforms. Bloomberg's John Tucker joins us with the very latest John sounds like a sci fi movie plot.

Yeah, it has everything, but an underground layer. Here Zuckerberg recruiting for a secretive new team. He's got a pretty audacious goal in mindly so he's trying to achieve Artificial General Intelligence AGI. This is the idea that machines can perform as well as humans. If Meta does achieve this milestone, he could weave it into a range of AI tools. He's personally going to hire a team of about fifty people.

All right, John, thank you.

Apple shares also a little change in the pre market after the iPhone maker failed to ease concerns about its position in AI. The shares fell more than one percent yesterday. After the iPhone maker kicked off it's annual Worldwide Developers conference in California. Apple did reveal a sweeping new software redesigned called liquid Glass. It's an interface that is said to unify the user experience across all devices, from iPhones to MacBooks. Bloomberg's Ed Ludlow covered WWDC in Cooper Tina.

A lot of liquid glasses inspiration comes from the work that app We're done with Vision Pro, you know, literally the UI and UX of that experience using vision Pro, the translucency of it. And so by making it uniform, you know, having the same look across iPhone, mac iPad os and Vision Pro and watch, you know, it just makes you more familiar and I guess open to using the full hardware suite of products.

Bloomberg's Ed Ludlow says. Also, as part of rebranding efforts, Apple confirmed it will use years rather than version numbers to identify its newest operating systems.

And Nathan a departure at Goldman Sachs, Aaron Arthur is retiring after nearly three decades at the Wall Street Powerhouse. Arthur is a partner in Goldman's Financial and Strategic Investors Group. Within investment banking, He helped shape the bank's global financing group and investment banking franchises. Time now for a look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael Barr.

Good morning, Michael, Good morning, Lisa.

New York authorities are sending a message to anyone thinking about violent protests in the city. In a speech, New York City Mayor Eric Adams called for protesters to remain peaceful and warrened. Authorities will not accept violence and lawlessness.

The escalation of protests in Los Angeles over the last couple of days is unacceptable.

It will not be tolerant if attempted in our city.

There were a series of smaller protests held in New York yesterday at Trump Tower in Midtown Manhattan. About twenty to twenty five protesters were arrested after they entered the lobby. The protests come as violent demonstrations broke out in Los Angeles in response to immigration raids across the area. Today is New Jersey's primary day. Six Democrats and five Republicans are running to succeed term limited Democratic governor Phil Murphy.

The tropical season is still fairly active off the Mexico coastline in the Pacific, and we do have Barbara, who was the first hurricane of the season. Barbara had seventy five mile per hour wins for about twelve hours or so, but now has weakened and will continue to weaken about two hundred miles off the central Mexico coastline. There will, however, be rough surf and dangerous rip currents along the vacation resorts all up and down the west coast of Mexico.

This is Bloomberg Lisa.

Thank you, Michael Bie now for our Bloomberg Sports update that's brought to you VI Rushing Bank. For that, we bring in John stash Hour.

Good morning, John, Good morning Lisa. First two Stanley Cup Final games went to overtime. The Panthers and Oilers split down the series move to Florida in Game three was a Panthers rat Brad Marshan who scored the game winner and Edmonton scored fifty six seconds in the lead was three to one in the second period, and.

Then Katschuk in against kling Bird puck play to the line and.

It's taken away, up, break away.

The long story, it hands it on Bennett in.

Bennetts top shelf.

Of the Panthers take up for one lead with twelve thirty four to go here in the second what a shift per playoffs.

Sam, Panthers Radio.

Sam Bennett had scored fourteen playoff goals, that's four more than anyone else. They added two more in the third, both on power play. The final was six to one. Florida leads the series two to one. Also from hockey, TJ Oshe retiring at age thirty eight after sixteen seasons, not a surprise.

Injuries kept him from playing this past season.

Os She played a big part in the Capitols winning the Stanley Cup. T eighteen, Mets and the Yankees were off. There were four extra inning games at Fenway. The Red Sox tied the Rays in both the ninth and tenth, but Tampa Bay onon ten eight.

In eleven, it was the major league debut for the Socks. Top prospect Roman.

Anthony recently hit a home run of the Miners that went four hundred and ninety seven feet. First game in Boston, he went over four the Phillies end of the five game, losing three. Scored twice in the eleventh, beat the Cubs four to three. The Dodgers began a big series in San Diego, winning eight to seven and ten, and Arizona beat Seattle on a Joshnaeler walk off grand slam the eleventh inn. It's the Mets and Nationals Tonight. Mets are twenty four and seven at City Field. Yankees are in

In a row.

They gave up twenty one runs in those last two games in Boston. Running Back Nick Chubb, after seven seasons in Cleveland injury rid of the last two, has signed with Houston.

John Stashawer Bloomberg Sports, Lisa.

And Nathan, all right, thank you, John. Taking a quick look at the markets right now, future as well, pretty much treading water. We have SMP futures little change up about a point down, Futures down about ten to f percent forty two points, and NASZAK future is a little changed up about nine. We have the two year yield at three point nine eight percent, down two basis points, and the yield on the tenure full point four five percent, and that's down two basis points.

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. The stakes have been raised even higher. After four days of protests and Los Angeles, President Trump is deploying seven hundred marines to join the two thousand National Guard members he activated over the weekend. California suing over that move. But the President says Governor Gavin Newsom should be thanking him.

He should only be.

Happy I sent in the military, because if I didn't send him in, you would add a problem. They're the likes of which we haven't seen in a long time.

That was President Trump at the White House yesterday. This morning, we're joined by Bloomberg New Senior editor Derek Wallbank and Derek, this latest show of military force in LA seems to raise things to a whole new level.

Good morning, Good morning, Nathan. Yes, it certainly does. It is a move that does not have any recent precedent to it, and it is one that the states, state and local leaders have said is actually inflaming tensions, which is contrary exactly what the President said. We did see overnight additional clashes there. We also saw protests spreading to a number of other cities, many of them peaceful, some of them were protesters clashed in with police, including in Austin,

This is a live issue.

This is an issue that the Trump administration wants to have as a central issue. If you're sort of thinking about the stories that have been that have been written recently, including on the Musk feud, or you know, sort of what's in the One Big Beautiful Bill and difficulties in passing that, or some other things, the Musk team would or the Trump team would very much rather have the

Interesting when you have the president seeming to endorse this idea that his borders are Tom Homan put out that if there's interference with the response that the governor could be arrested, where does this go from here?

Derek, Well, you know one thing I should say before the start of the answer to that is that Holman did walk that back a little bit in a late interview. But I will say, look, you know, it raises the stakes and one of the things that I'm particularly interested in here, Nathan, is that there is a certain you know, cometh the hour cometh the man's situation for Gavin Newsom,

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I'm Nathan Hager.

And I'm Lisa Matteo. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak