US Debt Concern After Tax Bill's Passage; President Trump's Harvard Fight

Bloomberg Audio Studios, Podcasts, radio News.
Good morning.
I'm Nathan Hager and I'm Lisa Matteo. Here are the
top stories we're following today.
Lisa, we begin in Washington, d C.
Where President Trump's massive tax and spending cut bill has
taken its first big stamp on Capitol Hill.
It is moving on to the Senate.
After the mix of tax breaks and cuts to social
programs past the House by the thinnest of margins. House
Speaker Mike Johnson says he's confident it's going to get done.
We stand ready to continue our work together to deliver
on the one big, beautiful Bill, as President Trump named
it himself.
We're going to send that to his desk.
We're going to get there by Independence Day on July fourth,
and we are going to celebrate a new golden age
in America.
But before that happens, for House Speaker Mike Johnson, lawmakers
may have to satisfy bond investors. The yield on thirty
year treasuries is back above five percent on concerns the
bill will add to the nations already ballooning deficit. Sima
Shaw is Chief Global Strategistic Principal asset management.
Increasingly, it feels like this administration is going to have
to confront the problems because the bond market has lost patients,
and it's really going to force the issue through to
make sure that there is some realization that continuing to
expand its deficit its debt numbers indefinitely is simply not
something which can continue.
Seemashaw with principal asset Now.
The Trump administration argues the bill will boost business sentiment
and unleash economic growth, but higher treasury yields could make
it more expensive to.
Borrow and pile on even more to the government's stat.
Nathan Now the latest on another major story in the
nation's capital, the killing of two Israeli em Bessy staffers
at a Jewish museum. The suspect, thirty one year old
Elias Rodriguez, made his first court appearance on two counts
of murder, murder of foreign officials, and firearms charges. He
didn't enter a plea, but interim US attorney for DC,
Janine Piro, says the case is being investigated as a
hate crime and an act of terrorism.
This is the kind of case that picts at old
sores and old scars because these kinds of cases remind
us of what has happened in the past that we
can never and must never forget.
Interim US attorney Janine Piro says the case is eligible
for the death penalty, but prosecutors haven't said whether they'll
pursue it it. Surreal's ambassador says victims Iran Lishinsky and
Sarah Milgrim were about to be engaged in Jerusalem next week.
Charging documents say the suspect told police he did it
for Palestine. He's been ordered to remain in custody until
next hearing on June eighteenth.
And Lisa.
The Trump administration is making another big move against Harvard,
revoking the university's ability to enroll international students. It says
thousands of current students now to transfer to other schools
or leave the country. The Department of Homeland Security says
Harvard has created an unsafe campus environment by allowing anti
American pro terrorist agitators to assault Jewish students on campus.
Former Treasury Secretary Larry Summers is Harvard's president.
Emeridith this is.
Vicious, it is illegal, it is unwise, and it is
very damaging. Why does it make any sense at all?
To stop six thousand enormously talented young people who want
to come to the United States to study from having
that opportunity.
Former Harvard president Larry Summers told Bloomberg, quote, this is
the stuff of tyranny. The Homeland Security Department also accuses
the university of coordinating with the Chinese Communist Party, saying
it hosted and trained members of a Chinese paramilitary group
as recently his last year.
Well.
Meanwhile, Columbia University also under continued scrutiny by the Trump administration.
A government inquiry, it's found the Ivy League school violated
federal civil rights law by acting with quote deliberate indifference
toward the harassment of its Jewish students. Columbia has stated
that it is quote deeply committed to combating anti Semitism
and all forms of harassment and discrimination on our campus.
All right, let's turn to markets now.
Lisa stocks are on track for their worst week and
more than a month, and bond markets, as we said,
are reflecting investor concerns about ballooning US debt and deficits.
Kathy Jones is chief fixed income strategist at Schwab Center
for Financial Research.
The initial catalyst, or the immediate catalyst, was the budget bill,
which was kind of a final straw for the market
saying Okay, there's really no meaningful progress going to be
made anytime soon on reducing the deficit.
Kathy Jones of Schwab notes thirty year bond yields this
week reached a peak of five point one five percent,
that approach levels last scene in two thousand and seven.
This morning, the long bond is yielding five point zero
two percent.
Well.
Worldwide survey of businesses shows those most worried about tariffs
are in the US. Bloomberg's John Tucker following that story
Good morning, ed.
Good morning to Lisa.
Fifty one hundred international firms in thirteen countries were surveyed
by HSBC. About a quarter of US companies say they're
forecasting their revenues will be cut by more than half
over the next couple of years because of the impact
of the Trump tariffs on their supply chains. By contrast,
Chinese businesses they appear to be more optimistic, with only
a quarter projecting an impact of twenty five percent or
more on revenues. Overall, HSBC found widespread concern about the
tariffs Vivic Ramachandra and has head of Global Trade Solutions
at HSBC.
Everyone we've spoken to is planning to reshape the supply chains,
look at new markets, or change the business model.
Well, two thirds of the respondents say they had already
experienced cost increases due to the tariffs and the trade
uncertainty in New York. I'm John Tucker, Bloomberg Radio.
All right, John, thank you, speaking of tariff stick with
Bloomberg and have a conversation with Treasury Secretary Scott Bessett.
He'll be sitting down with Bloomberg's David Weston at our
global headquarters in New York City. You can catch that
conversation at eleven thirty am Wall Street Time on Bloomberg Radio,
Bloomberg Television, and the Bloomberg podcast page on YouTube.
Well, Nathan, President Trump has initiated a phone call with
the Prime Minister of Japan. This is just as Tokyo's
top negotiator left for the US for another round of
trade talks. Prime Minister Shigiro Ishabaz, speaking through a translator,
says the two had a forty five minute conversation.
Dai Malutek. We didn't discuss any details about tariffs. Japan's
stance of seeking the removal of additional tariffs remains unchanged.
On the other side, also made no specific mention of
this matter.
The phone call between the two leaders was the first
since early April, when the US ramped up its tariff
against nations around the world, including Japan.
Well Lisa Top holders of President Trump's meme coin, and
other guests were greeted by protesters as they arrived for
a dinner with the President at his golf club outside
Washington last night. Gathering has faced criticism from Democrats, who
cited conflicts of interests and the potential of selling access
to the president, particularly to people from foreign countries.
Here's White House Press Secretary Caroline Lovett.
The President is attending it in his personal time.
It is not a White House dinner.
It's not taking place here at the White House.
This White House spokes coming Caroline Levin. And at the dinner,
President Trump gave a speech reiterating his pledge to make
the US the world scrypto capital.
Hard It's 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 bar
Good morning, Michael.
Good morning Lisa. Millions of people are planning to travel
by either planes, trains, or automobiles as we start the
Memorial Day travel rush. How is the weather looking for
holiday travel? Bloomberg Media religious Craig Allen has the latest.
There will be gradual improvement with each passing day as
we go into the holiday weekend, especially in and around
New York City and points south. It'll take longer for
some of the northern areas, like upstate New York or
into New England from Boston on north for it to
gradually clear out and get a little bit better. But
the trend is a better one overall, and we can
expect temperatures to moderate two. By the time we get
to Memorial Day itself, it should be back into the
upper sixties to mid seventies.
Bloomberg Media relogist Craig Allen. The Sean Didtycomb sex trafficking
and racketeering trial were resumed next Tuesday. Yesterday, fellow rapper
and actor Kid Cutty, whose real name is Scott Muscudy,
took the witness stand. He testified about his relationship with
Diddy's ex Cassie Ventura and violence that he says he
was the victim of about fourteen years ago. Cutty testified
shortly after comb Has found out he had been dating Ventur.
Someone set his car on fire. Combs is pleaded not
guilty to all charges. The music agency Sound Talent Group
says three of its employees died on the private plane
that crashed into a San Diego neighborhood on Thursday, and
that includes Dave Shapiro, the agency's co founder. Shapiro is
listed as the owner of the plane and has a
pilot's license. Six people were on that SESSMA. It originated
out of New Jersey's Teeterborough Airport. The jet crashed into
a neighborhood of US Navy owned housing in San Diego
during foggy weather, igniting several homes and numerous vehicles parked
on the street. This woman who lives there says the
crash spilled jet fuel down the street.
And I wrought fire all in front of my house.
I didn't know.
I just incurious explosions here and the fire was up
to like right in front of my front door.
So I'm trying to figure out how to escape with
my cakes.
Despite the destruction officials say no one on the ground
was killed. Global News twenty four hours a day and
whenever you want it with Bloomberg News.
Now, I'm Michael Barr and this is Bloomberg Lisa.
Thank you, Michael. All Right, it's time now for our
Bloomberg Sports update. For that we bring in John Stash.
Said.
When we last saw the next they were suffering through
the worst blown lead in an NBA playoff game in
at least twenty seven years. There was a point in
Game one with Indiana, the Knicks win probability was said
to be ninety nine point seven percent, but it's the
Pacers who won, bringing one nothing lead to Game two
tonight at the Garden.
Here's the next, Michel Bridges.
So it was just like the last five minutes, you know,
and learning from it and just own up to it
and know what we gotta do better. So don't really
crazy nothing to you know, obviously want that game back,
but you know it's a set of game series. So
it's just come, I'll be better, you know, play hope
forty eight minutes next game.
Game two.
In the West, they gave Oklahoma City stars Shay Gilles
Alexander his MVP Award. Then he scored thirty eight points
led the Thunder to a one eighteen to one oh
three win over Minnesota for a two to nothing series lead.
Florida Panthers appear on their way to a third straight
Stanley Cup Final with a chance to repeat as Cup champions.
The Panthers won five nothing at Carolina. Now go home
up to zem Yankee. He's in Rangers Stadium, Mattine with
the Yankee rookie infielder your bit Vivas at the plate
fifteen eight.
Big Boss has run deep to white Field, though all
is gone.
See yah his first big league Who gives the Yankees
on you nothing league?
Guess that work only run of the game.
The Yanks thirtieth win, eleventh in the last fourteen, and
now they get to play the Colorado Rockies, who are
eight and forty two, worst fifty games starts from a
season since eighteen ninety five the Louisville Colonels.
The Rockies are on pace to lose one hundred and.
Thirty six games, which would shatter the modern records that
by the White Sox last year they only lost one
hundred and twenty one. Metts and Dodgers started a serious
tonight in city Field, Red Sox and Orioles a day
night doubleheader at Fenway after last night's raining at the
Nationals won their fifth in a row eight seven ten
in means over Atlanta.
John Stashan of Bloomberg Sports, Lisa and Nathan.
Coast to Coast on Bloomberg Radio nationwide on Serious XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business Appum. This is Bloomberg Daybreak.
Good morning.
I am Nathan Hager, and President Donald Trump's one big,
beautiful tax and Spending Cut bill maybe making progress on
Capitol Hill, but it may have to run through the
gauntlet of a bond market that's raising a lot more
alarm bells about what the legislation could mean for the
country's already big deficit. Elojosa has had a fixed income
at Newton Investment Management.
The danger for now is that this fiscal phenomenon feeds
on itself. If it's a global phenomenon and you're seeing
yielded along end go up, that should be some multiple concern,
certainly for risky assets and certainly for policy makers as well.
As I have to finance at much higher interest rates.
That's Ellejoja of Newton Investment Management. For more, We're joined
by Bloomberg News Global Business editor Joshua Galoo and josh
we do still have a thirty year yield above five percent.
Had been at high as five point one point five
before backing off. It gets your attention, but you got
to wonder whether it gets Washington's attention.
Good morning, Good morning.
Yes, I think that the bond markets have been really
clear about how they feel about this tax bill. You know,
you saw the Moody's downgrade last week, and the markets
have responded as one would expect. Frankly, this bill adds
anywhere from you know, estimates range from about two and
a half trillion to more than five trillion dollars to
the deficit over the over the ten year, over the
ten year horizon that it's that it legislates for. So
the markets aren't happy and this, you know, honestly, it
creates big problems for the economy when the when the
country has to borrow at these high costs, it's a
compounding problem. So we'll have to see what happens is
the bill now moves to the Senate. The Senate wants
even more tax breaks, and they're going to push for
some some of the business tax breaks that are set
to phase out over the course of the bill's life
to make those instead permanent, which would actually put more
pressure on the borrowing. So we'll have to see what
happens there. They're rushing it through as well, and this
could result in more cuts to programs like Medicaid Snap,
the nutritional program for kids of low income households, and
some of the other provisions that could come up, like
the state and local tax deduction that was so hardly
fought in the House. So we'll have to see what
comes out of there. But they're really trying to push
it through to get it to Trump's desk by July fourth,
which is an ambitious timeline.
Yeah, less than two months from now.
And while the bond market may be trying to put
pressure on senators, President Trump and the administration are putting
even more pressure on Harvard University now to pretty unprecedented
levels in terms of their enrollment.
Josh.
Indeed, this is a massive escalation of their policy towards
higher education that they've been They've been running towards deleted
schools for the past couple months so yesterday Homeland Security
revoked Harvard's ability to enroll international students, and it also
said that current students who are internationals would have to
either transfer to a new school or lose their status.
And it of course that's about a quarter of Harvard's population.
This all stems from, you know, the administration's desire to
crack down on what it's calling sort of lack of
control to police anti Semitism and also other, you know, diversity, equity,
inclusion policies. That it's point that it's pointed to over
the course of the last few months.
It's a very.
Aggressive policy, something that is unprecedented, as you said, and
Harvard of course is challenging them in court and we'll
have to see how that goes.
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