NATO Leaders Tout Defense Spending; US Knocked Out of World Cup

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Good morning, I'm Karen Moscow and I'm Alexis christopherus. Here
are the stories we're following today, Alexis, thank you all.
President Trump and NATO leaders are a meeting in Turkey
for a summit focused on the alliance's future. The two
day gathering is an anchor at Turkey, and that's where
Bloombergy's chief Europe correspondent, Oliver Krook brings us up to
speed on the very latest.
Now, this is seen as the sort of follow up
meeting to the really historic NATO meeting last year in
the Netherlands, the one in which all NATO members effectively
pledged to pay five percent of their GDP sort of
military defense spending, and that was really seen as a
real unmitigated success of Trump foreign policy. It's something that
really nobody in Europe has really fought back against too much,
or have been a couple instances for Spain for example,
but again, this was sort of one of the things
that you could really notch down in the win column
for President Trump. In the twelve months that have ensued
since then, there have been some foreign policy actions which
you know are not so undisputably a success, namely the
warre in Iran. Obviously that has caused a great wedge
with a number of European allies and.
Bloomberg j all the rec Crook says, and ITO will
showcase new military projects worth billions in an effort to
convince President Trump that allies are boosting defense spending and Karen.
The NATO summit comes as tensions arising in the Middle East.
A laden liquefied natural gas carrier was hit by a
project down near the Omani coast as it exited the
Straight of Horror Moves. Bloomberg Managing editor Paul Wallace has
more from the Middle East.
Iran has said frequently is essentially said that it doesn't
want ships going on that route, that it wants them
to take its own route further to the north and
closer to its own coast, and that no ships must
go through without its permission. So it's possible that it
fight on these ships because they hadn't sought and got
Iranian commission. It's possible that Iran didn't know the nationality
or the precise identity of these ships, that it may
not have known they were Katari, but Either way, it
really speaks to how things is still very tense.
Over home news, Bloomberg's Paul Wallace says the vessel was
owned by Cutter, state owned shipping company neck A Loot.
Well, wean now turn to the world of sports Alexis,
where the dream of a World Cup for Team USA
is over. Bloomberg's John stash Hour joins us with the latest.
John, good morning, Good morning Karen. Playing on home soil,
this US World Cup team won three games, that's more
than any previous team, but the run ended with the
decisive for to one lost Belgium. Tyler Adams called it
a disappointing in to an otherwise positive World Cup.
I think that was the goal was to obviously inspire
people that the sport was growing in the US, which
I think we saw. I mean, the support was unbelievable.
I think our initial reaction as a team was that
in this moment we let them down.
Very quiet game for Foller and Valleying after so much
was made of his suspension being lifted and the role
President Trump played. More on the World Cup coming up
in sports. John Stashiewer, Bloomberg Radio, All.
Right, thanks John. In other news, this morning. President Trump
has filed a last ditch plea with the Supreme Court
to stop writer Ejen Carroll from collecting five million dollars
awarded to her by a jury that found the President
had sexually abused and defamed her. The Supreme Court previously
rejected Trump's appeal, which focused on technical questions involving federal
rules of evidence for civil cases. A decision by the
High Court to reopen the case could delay Carroll's receipt
of money. Right now, it's being held in escrow to
cover the jury award and interest well.
Alexi's main Democrat, Graham Platner, is under pressure from party
leaders and allies to end his bid for a Senate
seat following a sexual assault allegation he has denied. Platner
said it a social media video that he would reflect
on the best path forward for his campaign after the
allegation was published by Politico.
Regardless of the inaccuracy of the reporting, but mindful the
political reality it will inflict, we are taking the time
to reflect on the best path forward for the state
that I love, the people that I love, the movement
I belonged to, and the goal of defeating Susan Collins.
Those were the goals we launched this campaign, and they
remain my goals today.
Grand Platner has one week to decide whether to drop
out of Maine Senate race against Republican incumbent Susan Collins.
And we now turn to the markets, Karen, where tech
stocks are leading stocks lower around the world. Nasdaq Future
is down more than two hundred and seventy points, or
about one percent. In Asia, the Cospy and South Korea
dropped almost five percent a blowout. Earning support from Samsung
Electronics was not enough for investors. The world's biggest memory
maker by market value dropped more than eight percent and sold.
Max Bloxam covers tech stocks for Bloomberg Intelligence.
All these solks have gone up a huge amount this
year so far. At some point, you know, there isn't
that next leg of momentum. So wow, these are really
and things that are even better than we thought. I
think that they show answer is things have pretty much
where we expect to be.
Bloomberg Intelligence analyst Max Bloxham says sends Sum's quarterly profit
surge nineteen fold.
Alexis Wall Street appears bullish on space. Actually six brokers
including Goldman Sachs, Morgan Stanley and Ubs have initiated coverage
of Elon Musk's Rocket Company with the equivalent of a
buy rating, even though questions are made over its profitability
and valuation following last month's blockbuster market debut. Morgan Stanley's
price target of six hundred dollars is the highest on
Wall Street, implying an eighty seven percent gain in the
stock price. The bullish analyst calls come on the same
day SpaceX Joints than ASDAQ one hundred.
And In deal news, Karen shares of Kreinetics Pharmaceuticals soaring
ninety nine percent. Vertex Pharmaceuticals has agreed to buy the
ender chronology focused biotech company for ten billion dollars. The
purchase price of eighty five dollars a share is a
one hundred and two percent premium over where Kreinetic shares
closed yesterday.
In Europe, shares of Shell are up three percent. The
London based energy giant said oil trading profits were in
line with a strong first quarter, while gas trading results
were quote significantly higher. The Iran war has led to
a profit bonanza for the world's top energy companies as
the conflict caused unprecedented disruption to oil and gas supplies.
A good 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, Alexis. Flash flooding innudated parts
of the Midwest and northeast. In Camden County, New Jersey,
floodwaters submerged vehicles and closed roads. One driver had to
abandon this car. This woman saw what happen.
Car just came down the road and we're telling him,
we're waving him, were like, hey, don't go, don't go,
it's flooding, but he couldn't hear.
And then his engine seized up and his car just
turned off.
Everything started flashing.
In Monmouth County, New Jersey, a roof partially collapsed at
Bjay's Wholesale Club. Fortunately no injuries were reported. The roof
collapsed under the weight of standing water and debris. What
is in store for today? Here's Bloomberg meeting religious Craig Allen.
The weather pattern here in the mid Atlantic and the
Northeast is going to be quieting down now as we
move into the middle of the week. The extreme heat.
We know that's over, but we're not completely done with
additional showers and thunderstorms now. Yesterday, parts of the New
York City tri state region were inundated with two to
as much as six inches of flooding rains. Showers today
will be of less duration, less intensity, less coverage. A
handful of thunderstorms, though, could pop up around Washington and
New York City. Boston may have to endure showers with
a little more frequency for today and it could result
in local flooding. But for all of us, a dryer,
warm Wednesday is on tap. Bloomberg meetiing religious Craig Allen. Meanwhile,
Mayor Mamdani's office says that three New Yorkers died from
heat related illnesses in their homes during the heat wave
that started last week. In case you haven't heard, the
United States, they are out of the Men's World Cup,
losing to Belgium. We'll have more in sports with John
Stashower in a moment. Venezuela's earthquake death toll has risen
to three thousand, five hundred and thirty five. Official say
Nearly seventeen thousand people have been injured, sixty five hundred rescued,
eighteen thousand displaced, and estimated sixty thousand buildings were damaged
or destroyed in the twin earthquakes.
On June twenty fourth, Global News twenty four hours a
day and whenever you want it with Bloomberg News Now
Michael Barr and this is Bloomberg Alexis.
Thanks Michael.
A time now for our Bloomberg Sports Update, and for
that we bring in John stash Hour.
Thank Karen. Having won three games and having won its group,
there was the hope this World Cup team would get
to a place the US had only been to one
since nineteen thirty. The quarterfinals didn't happen. Belgium won decisively
four to one to move on to the quarterfinals, and
the US still not pass that round of sixteen. That's
where the US has gone out and now each of
their last four World Cups and all American women's quarterfinal
master Today at Wimbledon, Coco go up against Jess Pagoula.
They are the only two Americans left. That's to Bloomberg
Sports Update.
Stay with us. More from Bloomberg Daybreak coming up after this.
Coast to Coast on Bloomberg Radio nationwide on Serious XM
and around the world on Bloomberg dot Com and the
Bloomberg Business app. This is Bloomberg Daybreak now.
President Trump arrives in Turkey today for a meeting of
the NATO Alliance, where he's likely to hear more pressure
on other nations to boost defense spending the five percent
of annual economic output. Speaking yesterday, NATO Secretary General Rutas
said progress is being made in this area.
They committed to invest five percent of GDP on defense
by twenty thirty five, and now just one year later,
we already already see transformational progress. He and Ankara. I
expect nations to present clear from crete and cannibal plans
to reach that five percent goal.
Let's get more on a NATO's sammid now and what
we can expect with Beryl Akman, Bloomberg's Turkey Deputy bureau
chief and Beryl good morning. Well, we heard from Ruta
there addressing one of the President's key criticisms that NATO
allies are not paying their fair share. So is he
setting the tone here that efforts are being made to
appease the president?
I think so. I think one of the main goals
that we have we are seeing at the summit is
that making sure the US stays engaged. And just like
you mentioned one thing you mentioned with Mark Rutez saying
that already the European allies are doing this and that
is one way for the US to stay engaged. Now,
already Ruta has said that European allies and Canada are
ramping up there, spending by more than two hundred billion
dollars in the last couple of years. But we are
also seeing some disagreement taking place. Some are calling this
NAT three point zero, where European allies and partners are
filling the gap that the US as the US withdraws
from some of its commitments. Film and for example, has
argued for more pro European stands, while Spain has also
said that it will refrain from such spending, noting its
other public priorities. But here I think we'll see Turkey
as almost a bridge between the US and European allies.
It has emphasized in its prior president out on for example,
and its prior statements has emphasized Turkey's defense capabilities, and
just across the office in Ancor today there's a massive
defense form taking place on the sidelines of NATAL where
the earlier announced some procurement deals and some Turkish companies
are showcasing their defense capabilities.
Yeah, Turkey is playing a big role in this, obviously
hosting the summit for one. Also, the President will be
meeting with Airdiwan later today, so what will you be
watching for when they meet.
Absolutely, I mean, this is the first time in more
than a decade that the US president is visiting Turkey,
so it's monumental for ad On and for his image
at the NATO summit. Under President Trump, Turkey and the
US have boost a very good relationship, and the US President,
right before his departure to Ankara, has said that he's
joining the NATO summit out of his respect for a
president add On. I think one big item on the
agenda for US is antuspension that there might be progress
on Turkey's long stalled bid to rejoin the F thirty
five fighter jet program. It was removed from the program
years ago over its procurement of the Russian Foreign Air
Defense System. Now Trump has hinted at it before that
there might be some progress on this, and Turkey is
keen to get relief from US sanctions. So ard On
will be anticipating that Trump gives his blessings, but I
think there is one caveat, and even if there is progress,
even if we see any statements today when the two
leaders meet for bilateral talks, the mechanics around it remain unclear,
given the need for congressional approval and other restrictions.
Beryl Ukraine is also expected to be a focus of
the next two days. We have the President meeting with
Vladimir Zolenski on Wednesday. Are we going to hear any
specific pledges for defense support here as well?
I think that is certainly what President Zelenski wants. I mean,
it is a very different climate, I think for the
Ukrainian president compared to the Hague summit, when he wasn't
even sure if he'd be able to meet President Trump. Now,
I think both sides, especially the West, President has been
quite optimistic, saying that the war with Russia is close
to an end and that both leaders of Ukraine and
Russia want the war to end. But we also would
expect President Zelenski to highlight the vulnerabilities and Ukraine's air
defense system, especially earlier this week, A Russian attack killed
of Ukrainians and sort of showed that vulnerability so at
the Summits. In both his meeting with President Trump and
his meetings with other European allies, we expect the Ukrainian
present to emphasize more support from the NATO partners, including financially,
to help him with more air defense capabilities, including the Patriots.
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