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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin in Saudi Arabia, where President Trump has kicked off the second day of his four day Middle Eastern trip. This morning, the President met with Syrian president and former rebel leader Akmad Alshara. It was the first face to face between US and Syrian leaders in twenty five years, and at a meeting with the Golf Cooperation Council in Riot, President Trump said he is exploring normalizing relations with Syria.
The whole world is watching the Middle East, and many are watching with envy.
You have something very special going on.
Incredible opportunities are within reach for this region if we can simply stop the aggression from a small group of pretty bad actors.
President Trump's remarks come after a day focused on deals at the US Investment Forum. We get more on that from Bloomberg's Jumana Barssecci. In the Saudi capitol, the White.
House published the statements saying that they had agreed to six hundred billion dollars worth of investments Saudi investments going into the US that is to be spread out over the next four years, and then later during the conference's speech, he said that they're working on increasing that number to one trillion dollars.
So huge figures coming through.
Bloomberg's Jumana Barsettchi reports some of the biggest deals are with advanced US chip makers in Nvidia and Advanced micro Devices have agreed to a ten billion dollar project to provide their most cutting edge AI chips to Saudi Arabia's humane infrastructure effort.
Nathan from Saudi Arabia. President Trump will head today to Cutter, where he's already taking criticism over a luxury gift. Cutter is offering a Boeing seven forty seven eight jumbo jet for the president to use as Air Force one. In a social media post, the President says it'll only be temporary until Boeing delivers newer versions of the presidential plane, but Senate Minority Leader Chuck Schumer says taking this gift would be unconstitutional.
Gifting Donald Trump a four hundred million dollar private jet to use as Air Force one is so corrupt that even Putin would give a double take. This is not just naked corruption, it is also a grave national security threat.
Senate Minority Leader Chuck Schumer says he'll block President Trump's a Justice Department nominees until he gets more answers.
With certain markets. Now, Karen, it may have seemed unfathomable a month ago, but stocks are now higher on the year. The Nasdaq one hundred had been down twenty three percent from its February nineteenth high to its April eighth low after President Trump slapped broad tariffs on America's key trading partners. The S and P also hit its low. Then it was down fifteen percent on the year at the time. That index is now higher by a tenth of a
percent in twenty twenty five. Brian Belski is chief investment strategist at BEMO Capital Markets.
Well, I think too many investors, quite frankly, try to time the market instead of just being invested. And from our perspective, stocks are hire six months from now, stocks are higher twelve months from now. The resiliency of the US market remains so and we think too many people were led by fear and made binary decisions based on emotion and not process or discipline. And that's why we remain bullish, and that's why we think the secular bowl market remains well in place.
FEMO Capital Markets Brian Belski says his bowl case for the sm P five hundred is sixty seven hundred. That's about a fifteen percent gain from current levels.
Nathan, it's been big tech that's been fueling the rally over the past month. In Nvidia and Tesla's surged more than thirty five percent. Well, Microsoft is that more than twenty percent?
Well.
The S and P five hundreds plunge after Trump's tariff announcement on April second was fast eleven percent in just two sessions. It's bounce back has been almost as breathless. The index rows seventeen percent from April fourteenth to May second, the kind of thing that historically happens when the market is recovering from a major catastrophe like the dot com bust, the two thousand and eight financial crisis, and the COVID nineteen pandemic.
Well, Karen, President Trump may want oil prices to go lower. In fact, Goldman Sachs, citing an in house analysis of the president's social media posts, says he appears to prefer oil between forty and fifty dollars a barrel WTI, which right now is trading around sixty three dollars fifty cents, has shed twelve percent so far this year, heard by the fallout from the President's trade tariffs, as well as a decision by OPEC plus to loosen supply curves at a faster than expected pace.
Nathan, there's optimism in Washington that House Republicans may reach a compromise on the state and local tax deduction, and we get the latest from Bloomberg's John Tucker.
John Good morning, Good morning, Karen. Add this has been a real big sticking point. House Speaker Mike Johnson telling reporters that a deal on salt will be likely today. It would represent a breakthrough in one of the thorniest policy debates in President Trump's economic package. The Tax writing Houseways and Means Committee is debating a proposal that calls for increasing the salt cap from ten thousand to thirty thousand dollars, phasing out for individuals who earn at least
two hundred thousand. Is a big deal for high tax states where residents paid large property tax bills. Representative Mike Lawler, a New York Republican who attended a meeting with Johnson said the two signs are making progress, but another advocate for Salt, Representative Nick Lolota, so the proposals floated are still very far from what he wants. In New York, I'm John Tucker Bloomberg Radio.
All right, John, thank you. President Trump's tariffs may have a major impact on the state of California. According to Governor Gavin Newsom's finance department, the president's tariff policies are projected to cut California's tax revenue by sixteen billion dollars in the next fiscal year. However, that four percent revenue dropped from a previous estimate is largely due to the stock downturn last month after the President announced a sweeping
tariff campaign. Stocks, as we mentioned, have since rebounded well.
Nathan Harvard Universe City is escalating its legal battle with the White House. The Ivy League school has expanded its lawsuit against the Trump administration for freezing billions of dollars in federal funds. Harvard claims that federal agencies illegally halted funding because the university refused to submit to government control over its academic programs, and that the funding freeze will
chill its exercise a First Amendment rights. Yesterday, the Trump administration cut another four hundred and fifty million dollars in grants to Harvard University. That's in addition to the two point two billion that was previously frozen. Time now for a look at some of the other 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. It is day three of the sex trafficking and racketeering trial of Sean Diddy Comb's. Yesterday, Combe's former girlfriend Cassie Ventura took the stand to test via about her decade long relationship with the music mogul, including about alleged day's long sexual marathons. Ventura says she was worse to take part. Criminal defense lawyer Bernerda Villolona gave her analysis of Tuesday's testimony.
I was in the courtroom to hear her testimony. Than what you saw was a woman that was broken, a woman that was full of emotion and of regret and is now having the courage and the strength to come forward and say what happened to her.
Criminal defense lawyer BERNARDA. Villolona Ventura is expected to return to the witness stand today. Eric and Lyol Menendez will have a new chance at freedom after thirty five years behind bars from murdering their parents. A judge rule to reduce the brother's sentences from life without parole to fifty years to life. The resentencing means they are eligible for parole. Their attorney Mark Gerrigos, reacting to the decision outside the courthouse.
We have evolved.
This is not the nineties anymore.
We have a more robust understanding of a lot of things.
They were convicted of murdering their entertainment executive father and mother in their Beverly Hills home nineteen eighty nine. Prosecutors opposed their resentencing, arguing that the brothers had not taken full accountability for the crime. There is more talk of a possible strike by New Jersey Transit that could begin later this week. Talks had been underway before federal mediators between the Brotherhood of Local Engineers and Trainmen and the
head of NJ Transit. The union that represents the engineers is threatening to walk off the job as soon as twelve oh one am Friday of a contract deal is not reached and it could potentially impact three hundred and fifty thousand commuters. Governor Phil Murphy, I.
Think you'll leave all options on the table.
I'm still hoping that we find some resolution here, but we are.
Preparing for the worst.
Audio courtesy of ABC seven. A possible NJ transit strike could have more of an impact than just on the work commute. Shakira is scheduled to perform at Medlife Stadium on Thursday and Friday night and earlier this week. NJ Transit tolder fans not to count on train or bus service to the stadium. Global News twenty four hours in and whenever you want it with the Bloomberg News Now, Michael Barr, this is Bloomberg Carrot.
All right, Michael Barr, thank you time now for the Bloomberg Sports Update. Here's John Stanshawer, John, good morning.
Good morning, Caunt. A two to one win for the Mets, a two to one loss for the Yankees at Cityfield. Brett Baty finally living up to the promise he's shown in the miners with an opposite field seventh inning homer, and the Mets top the Pirates, improving to seventeen and four at home, the Mets won despite having only five hits. In Seattle, Yankees, with just five hits did tie the game of the ninetheenning, but the Mariners scored on the eleventh for the victory. Of the road trip ends for
the day game today. The Nationals lost their seventh in a row five to two in Atlanta. The Red Sox lost in Detroit ten to nine in eleven ins. The Tigers won on Hobby Bias' second three run homer of the game. The Indiana Pacers, who took out the Nixon Round two a year ago, this time took out Cleveland, who had the great regular season with the Cavs, who only lost seven home games over six months, lost three and nine days. Facers came from nineteen down won the series,
clinching Game five one fourteen to one oh five. They'll now play either the Knicks or Celtics, except three to one going for the clincher tonight in Boston. The Celtics, without Jason Tatum due to the torn achilles suffered late in Game four. In the West, Denver and Oklahoma City played a tight game five.
Seven to shooting his team is down by three roles tosses it up, Jokers wild to shoot, some help from Murray, Kick George Extra Williams, Tomaway, Thunder late by.
Thray Tantata Call. Oklahoma City won one twelve, one oh five despite forty four points by Denvers Nicola Yokis Thunder lead the series three two Dallas Stars three one win over Winnipeg three to one series lead. It was the Dave Pete Rose never lived to see, but his family had recently lobbied on his behalf for his reinstatement to Baseball,
and Commisioner Rob Manford finally granted it. Satan's statement that Rose can no longer present a threat to the games integrity, so Baseball's hit king can now posthumously be voted to the Hall of Fame. Tho, the earliest to what happened is twenty twenty eight. John Stanshewer, Bloomberg Sports Kereny.
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. President Donald Trump is shifting focus from deal making to diplomacy as he kicks off day two of his four day Middle Eastern trip. At a meeting with the Golf Club Operation Council in Riod this morning, heard live on Bloomberg Radio, the President said, the days of the US turning its back on golf allies are over.
The Gulf nations.
Are at the forefront of creating a stable, peaceful, and prosperous Middle East, and I have to say that I've seen such progress.
It's really incredible.
I've also seen great unity and friendship.
President Trump there speaking at the Golf Cooperation Council this morning, joining us from Riad once again. Bloomberg Horizons anchor Jumana Barsechi Jamana, thanks so much for joining us, and I guess the biggest headline to come out of the President's remarks this morning is that the US is exploring normalized relations with Syria. This would be quite the reversal among many reversals we've seen on this trip so far.
Good morning.
Certainly unbelievable to think that we could be at the phase six months ago. If you were wind back Assyria was still under the grips of the Assad regime. So much has changed in the region in the last six
months and I think today's meeting really encapsulates that. And the fact that President Trump in has remarked yesterdy very long speech that he gave at the Saudi Business Investment Forum, obviously talking about all of the deals with big investments, but one of the big headline moments, and I was in the room, it was an electric atmosphere, was when he announced that the US we're looking to remove the
sanctions on the Syrian government. And that was not with a standing ovation and the loudest applause that he received throughout the whole speech, and then followed up by a one to one meeting that he had with that is the new Syrian president today on the sidelines of the GCC.
The Syrian president obviously was a special invite, he's not part of the g c C. He was invited to at time this event, and then a picture was taken with the Crown Prince, President Trump and Syrian President Ahman Shada talking about the birth of a new Syria, and President Trump quite literally said that this is their chance
to shine. There's an understanding that the Syrian government has been or the Syrian that contry has been crippled by the sanctions that have been in place for over a decade now, a country that has been ravaged by war
under the oppressive Assad regime. Now is the focus on reconstruction, rebuilding institutions, and regaining political stability, which I think is one of the most powerful messages that came out of President Trump's speech yesterday in terms of how the Trump administration is thinking about the region and their priorities the next few years.
How seriously Jumana do Gulf al take the potential for a pivot in the Syrian regime following the fall of Bashar al Assade. Of course, Syria has long been an ally of Russia and.
Iran very seriously, and I think the president, the new president is trying to say the right things and do the right things. We can't forget he has jihadi roots, Let's not forget that. So he's a bit of a reformed politician, I should say himself. Even the way he dresses. He dresses more in civilian clothes and he did, you know five six years ago when he was a fighter
fighting against the Asad regime. But there's been also a lot of talk about the type of governance that needs to be in place and the need for pluralistic society, one that respects all minorities, and that was the major concern. If you remember, there was an incident a couple of months back where I was actually a mass killing that took place of the Alla white minority and one of the coastal towns, and there was concerns here turns back then that Syria may be gripped by again sectarian division.
But they've tried to thwart that move past it and create a government that does feel more pluralistic. Obviously, it remains to be seen how successful they're going to be. That the only foreign trip that President shout out has mete outside in the least with the France. Last week he met with President macarel as being an easing of sanctions from Europe. And now there's this double step of the possible easing of sanctions from the United States as well.
So the United States really is presenting them with an opportunity, alongside the GCC, to create something more stable in the region.
This is Bloomberg Daybreak, your morning podcast and the stories making news from Wall Street to Washington and beyond.
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And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg dabray