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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 with a preliminary deal between the US and China. The two countries have agreed on a framework for how to implement the consensus they reached in a prior round of trade talks in Geneva. The framework includes China's pledge to speed up shipments of rare earth metals and the US easing some of its export controls. Here's Commerce Secretary Howard Lutnik, the two.
Largest economies in the world have reached a handshake, right for a framework.
We're going to start to implement that framework upon.
The approval of President Trump, and the Chinese will get the president cheese approval, and that's the process. So once the President's approve it, we will then seek to implement it.
Commerce Secretary Howard Lutnik says the two sides negotiated for more than twenty hours in London. The deal could still be rejected by Presidents Trump and Sheet. Many issues remain unresolved, including China's trade surplus with the US and concerns over dumping goods on US markets.
Meanwhile, Nathan Bloomberg News has learned the European Union believes trade negotiations with the US will extend beyond Donald Trump's July ninth deadline. The date marks the end of President's ninety day pause on most global tariffs. After that point, US charges will increase dress drastically for many nations, with EU facing a fifty percent levy if a deal can't be struck and no extension is offered.
And Lisa, there is a legal victory for the president on the trade front. A court has ruled that the President can continue enforcing his global tariffs. The US Court of Appeals for the Federal Circuit extended an earlier reprieve for the Trump administration, which is challenging a lower court ruling that blocked the tariffs. Arguments are scheduled for July thirty first.
Well, now to the latest on the unrest in Los Angeles. The city imposed a curfew last night in a stretch of downtown that's seen the highest tensions over immigration rates. Almost three hundred and eighty people have been arrested across LA since the weekend, and clashes between protesters and law enforcement.
But after President Trump authorized the deployment of seven hundred Marines and up to four thousand National Guard troops into the city, California Governor Gavin Newsom is sounding a warning.
California maybe first, but it clearly will not end here. Other states are next. Democracy is next. Democracy is under assault before our eyes. This moment we have feared has arrived.
In a televised speech, Governor Gavin Newsom said ICE agents have been jumping out of unmarked vans and detaining people in heavily Latino neighborhoods. The Trump administration has said the conditions in LA are spiraling and federal forces are needed to support immigration agents and restore order.
And other political news, Lisa.
Two winners have emerged in the race to be the next governor of New Jersey, and we get the very latest on that from Bloomberg's John Tucker, John Man, Good Morning Nathan.
Republican Jack Chitarelli and Democratic Congresswoman Minkey Cheryl won their primary elections, Cheryl emerging from a crowded field on the strength of her background as a Navy pilot and former prosecutor. In her victory speech, the fifty three year old Cheryl criticized Chittarelli as a lackey of Donald Trump and invoked New Jersey's role in the American Revolution.
We are in.
An American crisis, but not in a war for independence, in a fight for a future, to fight for justice, for liberty, for opportunity, and for prosperity.
All the sixty three year old Chittarelli, a former state lawmaker and small businessman, wasn't shy about his affinity with the president.
Add to our most well known part time New Jersey resident, who honored me with his endorsement and strong support.
Thank you, President Donald J. Trump thirty four percent of the vote. Her closest competitor was Newark Mayor ros Barrocka with twenty percent. Chittarelli had sixty eight percent, compared to his closest competitor, Bill Spadia, who had twenty two percent. New Jersey has been reliably democratic in senate and presidential con that it's a can't contest for decades, but the odd year races for governor had tended to swing back
and forth. New Jersey and Virginia the only states that hold races for governor the year after a presidential election, and results are often seen as an early barometer of voter sentiment ahead of next year's congressional midterm. On John Tucker Bloomberg.
Radio, all right, thanks for that, John Well. The debate continues on Capitol Hill on President Trump's three trillion dollar tax and spending cut bill. Senate Majority Leader John Thune says Republicans will deliver on the president's campaign promises to end taxes on tips, overtime, social security, and auto loans. House Ways and Means Chairman Jason Smith says any bill that doesn't would be dead on arrival.
Tax on tips, no tax on overtime. These are items that the President spoke at every one of his rallies, and seventy seven million people voted for him. The House delivered on it. The Senate will deliver on it as well.
House Ways and Means chair Jason Smith spoke on Bloomberg's Balance of Power. Meantime, the House Rules Committee is moving ahead which changes to make the bill comply with Senate budget rules. They include stripping out language targeting an energy assistance program, medicaid provisions in the Social Security Act, and a small amount of new Pentagon funds.
Of course, as you remember Lisa.
Disagreements over the text cut bill led to a major falling out between President Trump and Elon Musk, now the world's richest man. Maybe looking to patch things up, Let's get that story from Bloomberg's Kimberly Adams and.
Posting on X in the middle of the night, the billionaires said, quote, I regret some of my posts about President Trump last week.
They went too far.
Musk had served as a close advisor and confidant to the President until a bitter public falling out last week. The dispute, which was triggered by Musk's opposition to the tax cut bill Trump is pushing through Congress, posed a threat to Musk's wealth when the President raised the prospect
of retaliating by cutting off his government contracts. Musk had riled Trump by claiming credit for his election victory, endorsing his impeachment, and even suggesting the President was implicated in the sex crimes of Jeffrey Epstein, Kimberley Adams, Bloomberg Radio.
Thank you, Kimberly. Meanwhile, Elon Musk space company SpaceX is calling off a mission that was supposed to take off today. Four private astronauts, including the first Indian in space in more than forty years, were scheduled to lift off to the International Space Station with NASA and Axiom Space Well. Now the launch is being delayed to fix a liquid oxygen leak that was found during inspections of the Falcon
nine rocket. SpaceX says a new launch date for Axium Mission four will be announced once the repairs are complete.
Hik Ker on Earthly.
So let's turn to the markets, and the econo I mean futures are a touch lower this morning.
Is investors a way to key reading on inflation?
At eight thirty am Wall Street time, we get the May Consumer Price Index and we get a preview now from Bloomberg's Michael McKee.
Economists are certain that Trump import tax will push up inflation. What they don't know is when, by how much and for how long. Today's data should offer a first clue. The consensus is the first inflation waves could be lapping at the shore. Prices for imported goods like furnishing, apparel and electronics and for used cars are expected to rise, and that should push headline and core CPI up for
the first time since January. How much they rise, we'll set the tone on Wall Street, although it will take a few more months data for the FED to decide whether there is a price problem. Michael McKee, Bloomberg Radio.
Thanks Mike. Meanwhile, a growing course of advisors inside and outside the Trump administration are pushing for a familiar name to succeed Jerome Powell as FED chair.
US Treasury Secretary.
Scott Besson, Bloomberg's Valery Titel says in Ves would likely consider best in a safe choice to succeed Powell, but.
Be seen as very loyal to Trump, and we know that Trump wants these FED cuts sooner rather than later, So perhaps if he does emerge as a clear front runner, the market might take that very dubbishly.
Bloomberg's Valery Tititel ads at President Trump said Friday he would name a successor quote very soon. J Powell's term as FED chair ends May twenty six.
In company news, Lisa General Motors is making a big move in the US to help manage President Trump's tariffs. GM plans to invest four billion dollars in US plants over the next two years to boost output of some of its top selling gas powered vehicles. GM says the investments will allow it to produce more than two million vehicles in the US each year, reduce its reliance on Mexican factories, and add between three to four thousand US jobs and.
A record for Nintendo. The company says it's sold three and a half million plus units of the Switch to in just four days. Nintendo has already sold more units than the original, which did in its first month in twenty seventeen, and it's on track to meet its target of selling fifteen million units by March next year. 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.
Michael, thank you very much. Lisa Representative Lamonica mcgiver has been indicted on federal charges alleging she assaulted and interfered with immigration officers during a skirmish outside of New Jersey detention center. Mcgiver has disputed the allegations as baseless. The skirmish happened last month as Newark's mayor was arrested after trying to join mcgiver and two fellow Democratic representatives who said they went to conduct congressional oversight at Delaney Hall.
Police bodycam video shows mcgiver's elbows pushing into an officer, but it is not clear from the video whether that contact was intentional. Employees walked out at the CDC Tuesday, one day after Health and Human Services Secretary Robert F. Kennedy Junior removed all seventeen sitting members of the Centers for Disease Control and Prevention's Vaccine Advisory Committee. Some experts are concerned during this could backfire as the flu and
cold season rolls around in the fall. Emergency medicine physician doctor Darien Sutton.
In the short term, there's typically nothing that is significantly changing, and typically the advisory committee makes recommendations that then leads to the approval by the Health and Human Services Secretary and then, inevitably, vaccine companies will typically cover that vaccine and provide coverage and access. So we have to wait and see how these changes will take effect in the fall, especially with the upcoming flu season.
Doctor Sutton spoke to ABC. Austria has declared a three day period of national mourning following a massacre at a school in the city of Gratz. Police say investigators found a good bind letter and a non functional pipe bomb when they search the home of a one year old man who opened fire at his former school, killing nine teenagers and a teacher before taking his own life. The Air Force has reduced its request to Congress for f
thirty fives from forty eight to twenty four. It's a significant cut that may reflect the Defense Secretary's plan to reduce US military spending by eight percent over the next five years. Global News twenty four hours a day and whenever you want it with the Bloomberg News. Now Now Michael Barne, this is Bloomberg Lease.
Thank you, Michael. Time now for the Bloomberg Sports Update. For that we bring in John stash Our. Good morning John, Good morning Lisa.
The Yankees were coming off Sundays lost to Boss to the game where Aaron Judge had two run homers in the first and ninth innings in Kansas City. He came up again with a man on in the first.
Swigging a deep blast way on into my field. Judge, chance, stop, loot stop, why money to run jackular first nothing again, unbelievable.
Yes, Network, the call they got out the tape measure four hundred and sixty nine feet for Judges twenty fourth on run the ball landed on the roof of the Royals Hall of Fame. Austin Wells had a three run shot, then a two run double. Yankees all over the Royals ten to two. Max Freed is now nine and one.
At City Field, Mets trailed Washington for two in the eighth inny Uan Soto, who had homered earlier with an RBI double, and then Pete Alonzo drove him in to tie the game, and then Jeff McNeil a walk off hit tenth inning, Mets won five to four. They'd won thirteen of the last sixteen. The Giants have won six in a row, and all by one run. They scored four to the ninth to beat Colorado Red Sox, a three to one win over Tampa Bay Thunder and Pacers tied at one. Game three the NBA Finals tonight at
Indianapolis one. It's worth Indiana zero to three in Game threes, thirteen and two in all the other games. The Knick search for a new coach had them reportedly asked for permission to interview Houston coach Jimmy Udoka and Minnesota's Chris Finch, and both times permission denied. Running back JK Dobbins signed
with Denver, played previously with the Ravens and Chargers. First look at Aaron Rodgers in a Steelers uniform and after his mini camp workout, he was asked why he chose to play for Pittsburgh.
It starts with Mike Tummlin and then I've been a fan of his for a long time. There's a few iconic franchises in the NFL. I played for one of them for eighteen years. This is another one of those. There's something special about, obviously this area. So many great quarterbacks are from Pittsburgh.
The forty one year old lifelong bachelor, Rogers revealed he recently got.
Married John Stashawi, Bloomberg Sports.
Lisa Henry, all right, thank you, John. Taking a look at the markets once again, future still following. We have NAZAC futures down to ten percent, twenty seven points down, futures down ten percent, sixty nine points, a SP futures falling a ten that for percent or nine points. The two year yield four point zero two percent, that is little chains and the yield on the tenure four point four to eight percent, and that's up one basis.
Point coast on Bloomberg radio nationwide on Sirius Exam and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager.
It took two days of marathon talks, but the US and China have reached an agreement to restart flows of sensitive goods that they agreed to start in Geneva just a month ago. Commerce Secretary Howard Lutnix spoke after the negotiations wrapped up in London last night.
First we had to get sort of the negativity out, and now we can go forward to try to do positive trade, growing trade and beneficial to both China and to the United States.
From now, Commerce Secretary Howard Lutnix, speaking in London overnight this morning. We're joined by Bloomberg New Senior Editor Bill Ferries. So, Bill, is this kind of back to where we started from for the US and China?
Good morning, Hey, Good morning, Nathan, Thanks for having me.
It is a little bit It depends on how far you want to roll the calendar back, but it is, you know, roughly back to where the US was at least a month ago when Scott Bessen and his Chinese counterpart reached a deal in Geneva that was supposed to get trade talks on the right track. It didn't really work out that way, but the two sides had two intensive days there in London and they really did seem
to find an agreement. We're still waiting for the details of what was in that accord, but Howard Lutnick, when he spoke to reporters afterwards, made it clear that one key issue was resolved, at least from the US perspective, and that is the export of these rare earth magnets that are so critical to businesses from the defense industry to the auto industry. And it's really believed that that is what put the pinch on the US to try to get a deal done quickly.
Now you look at the market reaction this morning, a modest dip in futures, with some of those details still waiting to be released here, particularly in terms of the export controls that the US had put on China. There's still a lot of questions to be answered there.
Yeah, before this deal was reached, there was a lot of talk about the US potentially lifting its restrictions on things like chip software design. Chip software design software and jet part jet engine parts and things like that. It's not clear what the US conceded in this side. We have seen Asian stocks, particularly some of the consumer electronics stuff,
doing quite well today. It's a bit of a contrast with the reaction in the US market, which, as you said, has been a little bit of a little bit down in terms of the futures.
So while we're waiting for some of those details to come out, we've got negotiations going on on multiple fronts, including with the European Union. It sounds like they're trying to reach a framework deal of their own before the July ninth deadline.
Yeah, it sounds like they are looking at potentially getting an extension already in those talks that you know that July ninth deadline is just under a month away, and they are hoping to get some kind of a framework agreement.
But that would allow kind of talks to continue without without those tariffs kicking back in those suspended tariffs, So that's something, you know, It is a sign, I suppose of progress, but also I think just a recognition that you're not going to be able to work through all this in the span of just another thirty days or so.
All right, turning from the trade talks to I guess domestic politics, the situation in Los Angeles continues to unfold. There's an overnight curfew, and the war of words between President Trump and California's governor just is not letting up.
Bill that's right.
I mean, it was a little bit of an even quieter day and night compared to really compared to the weekend when you had all those cars getting burned. Things have calmed down a bit on the streets. The rhetoric
has not really calmed down at all. There is a curfew in about a one square mile section of Los Angeles, fairly confined area where a lot of businesses were attacked or looted overnight, according to that's according to Mayor Karen Bass And there are now up to four thousand National Guard troops and seven hundred Marines who have been authorized
to deploy to the city. California Governor Gavin Newsom getting on the air today addressing his state, saying that California may be the first to face these policies from the administration, but saying it clearly won't be the last, and so that rhetoric is continuing to escalate, even as the situation on the streets has perhaps quieted a little bit.
Our last minute, while we haven't really been talking much about the war of wards between President Trump and Elon Musk with what's been happening in La but Elon Musk looks like he's trying to dial things back there.
Yeah.
Elon Musk is not, I don't think, known for making a lot of apologies, saying that he regrets some of the posts he put up about Donald Trump last week, saying that they went too far. Of course, you you'll remember that he said that there were mentions of Donald Trump in the Epstein files and he said have a
nice day DJT after posting that. He never provided any evidence for it, but it was seen as a particularly low blow against the president, and obviously, you know, part of the bigger meltdown we've seen these two, these two leaders have.
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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