Senate Republicans Race to Finish Tax Cut Bill; Stocks at All-Time Highs

Bloomberg Audio Studios, Podcasts, radio news.
Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today.
Karen, we begin in Washington, where debate continues in the
Senate on President Donald Trump's massive tax and spending cut bill.
This morning, senators kick off a marathon voting session on
dozens of amendments to the legislation. The process is likely
to take all day, but Senate Majority Leader John Thune
is hopeful it will get done in the end.
Republicans are united in our commitment to what we're doing
in this bill, securing our border, strengthing our national defense,
growing our economy, unleashing American energy, cutting waste, fraud and abuse,
and preventing tax hikes on hardworking Americans.
Majority Leader Thoon is going to be working behind the
scenes to ease republicans competing concerns. North Carolina's Tom Tilli
says the medicaid cuts in the bill go too far.
What do I tell six hundred and sixty three thousand
people and two years or three years when President Trump
breaks his promise by pushing them off of medicaid because
the funding's not there.
Republican Tom Tillis announced he will not seek reelection next
year after President Trump threatened to primary him for voting
against the bill. Other Republicans are pushing for even faster
Medicaid cuts to shrink the bill's price tag, and Elon
Musk is weighing in as well. The Tesla CEO and
former Trump advisor says cuts to electric vehicle and clean
energy text credits would be incredibly destructive to the country.
Republicans are racing to get the bill to President Trump's
desk by the end of this week.
Nathan, we have several developments on the trade front this morning.
The UK US trade deal is officially in effect. It
marks the only trade agreement the White House is implemented,
but nine days to go on its self imposed tariff pause.
Let's go to London and get the latest of Bloomberg's
un Potts. You and good morning, Karen, Nathan.
As global leaders scramble to agree tariff deals with the US,
the UK's is now in place. British car manufacturers can
now export to the US with a ten percent tariff,
down from the twenty five percent rate imposed on other countries,
and aerospace companies like rolls. Royce now face zero tariffs
on goods including engines and aircraft parts. However, there's no
sign of progress towards reducing levees on the UK's beleaked
steel industry. Those remain at twenty five percent in London.
I'm you in pots Bloomberg Radio.
Thanks you.
And trade taks between the US and Japan continue, and
President Trump's flooding the idea of keeping twenty five percent
tariffsign Japanese cars. That duty has emerged as one of
the key sticking points in the negotiations. Washington's focusing on
its large deficit in the auto sector, while Tokyo is
trying to protect a key pillar of its economy.
Nathan.
Canada is making a move to try to jumpstart trade
talks with the uare so it as withdrawing its digital
services tags on technology companies such as meta platforms in alphabet.
The tax, which has passed into law last year, would
have charged three percent of digital services revenue above fourteen
million dollars in a calendar year. The move infuriated President Trump,
who on Friday said he was ending all trade discussions
with Canada.
Well Karen, President Trump says he's identified a buyer for
the US operations of TikTok, but he's not naming the
winning bidder. The news comes after US and Chinese officials
confirmed they had agreed on a trade framework last week.
Speaking in a pre taped interview with Fox News, the
President expanded on the TikTok terms.
We have a buyer for TikTok.
By the way, I think I'll need probably China.
I think Presidency will probably do it.
Was a group of very wealthy people.
I was President Trump speaking on Fox Now. January deadline
for TikTok's Chinese parent, Byte Dance to find a local
buyer was pushed back twice by the President. This month,
he extended that deadline again a further ninety days from
June nineteenth.
Nathan. President Trump also aid in on the Democratic nominee
for New York City mayor, Zooran Mamdani in that Fox
News interview.
He's a communist and he's a pure communist.
I think he admits it.
And the President raised the possibility of withholding federal funds
for the city if Mandani's elected in November. The thirty
three year old has described himself as a democratic socialist
and In an interview with NBC's Meet the Press, he
was asked if he thinks billionaires should exist.
I don't think that we should have billionaires because, frankly,
it is so much money in a moment of such inequality.
And Zoron Mandani says business leaders have told him the
high cost of living in the city is keeping them
from attracting and retaining talent. He also says there's no
room for anti Semitism in New York, but he declined
to condemn the phrase globalize the Intifato, which is offensive
to many Jewish people. You can hear Meet the Press
every Sunday on Bloomberg Radio.
Well back to the markets now, Karen Traders begin the
this week with stocks at all time highs. On Friday,
the S and P five hundred joined the Nasdaq one hundred,
closing at records. Stocks have made a stunning recovery from
April and the tariff turmoil that started the quarter, adding
almost ten trillion dollars in value after teetering on the
cusp of a bear market just two months ago. Troy
Gayski's chief market strategist at FS Investments.
Ernie's estimates have come down rightfully, but I think at
the end of the day, the technical strength of markets
continues to be underestimated, as well as the continued strength
and the consumer.
It's FS Investments Chief market strategist Troy Gayski. US equities
took in one hundred and sixty four billion dollars of
inflow so far this year. Bank of America says that's
on course for the third largest annual allocation in history.
Nathan Goldman sachs as US profit margins face a big
test in the upcoming reporting season as investors assess the
damage from President Trump's trade war. Goldman says the second
quarter earnings will capture the immediate effects of tariffs that
have increased by about ten percentage points since the start
of the year. Analysts expect a sharp slowdown in US
profit growth for the second quarter, with earnings per share
I expected to rise only two point six percent for
the April June period.
Well, legendary short seller Jim Chenos is sounding a warning, Karen.
While enthusiasm for all things artificial intelligence has helped propel
stocks to all time highs Chenos says the AI ecosystem
is getting close to a potential pullback. He spoke at
an odd Lot's podcast recording last week.
There is an ecosystem around the AI boom that is considerable,
as there was for TMT back in ninety nine and
two thousand, but it is a risk year revenue stream
because if people pull back, they can pull back CAPEX
very easily. Projects can get put on hold for six
months or nine months, and that immediately shows up in
disappointing revenues and earnings forecast if it happened.
Jim Chenos likens the dominance of AI companies to networking
giants like Cisco and Lucent that characterized the market in
the nineteen nineties and saw their stock soore as companies
upgraded their systems to handle the new Internet age.
Nathan Chairs of Junipers surging more than eight percent this morning.
The Justice Department has settled this lawsuit challenging Hewlett Packard
Enterprises thirteen billion dollar takeover of Juniper Networks. The agreement
will require the combined company to sell HPEES instant on
wireless networking business and auction off a license to Juniper's
competing missed business. Shares of Hewlett Packard they are up
more than four percent. The settlement comes less than two
weeks before a trial was set to start. 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 John Tucker. John, Good morning, and.
Good morning Karen. A fire on Canfield Mountain Quarterlane, Idaho,
appears to have been intentionally sent to set up an
ambush for firefighters. The local county sheriff, Bob Norris says
two of the responding firefighters were killed. One more is heard.
We believe based on.
The information that we've been able to collect, that we
believe that there was only one shooter.
Well. A suspect was later found dead of a gunshot wound.
Hours after the end of the pri parade at New York,
two people were injured in a shooting in Greenwich Village,
just blocks from the Stone Wall Inn. Please say shots
were fired at three Sheridan Square just after ten last night.
One person was shot in the head and was taken
to a hospital in critical condition. Another person was injured
in the leg. No resks have been made, but a
gun was recovered at the scene. President Trump says he's
not offering Iran anything and that he hasn't been talking
to them since the US struck Iran's nuclear facilities. The
President making the comments in a post on truth Social Earlier.
In comments on Fox News on Sunday, the President suggested
he might back eventual sanctions relief for Iran if, in
his words, they can be peaceful. In New York, jury
deliberations expected to start today at former rap music mogul
Sean P. Diddycalms sex trafficking trial. This follows closing arguments
of the case on Friday and twenty three. In me
is secure bankruptcy court approval to sell its genetic data
trove to its co founder and a related nonprofit for
three hundred and five million dollars. It includes the genetic
data of more than thirteen million customers. The sale comes
despite Staunch's pushback from a slew of states that raise
privacy concerns. Global News twenty four hours a day, whenever
you want it with Bloomberg News Now. I'm John Tucker
is Bloomberg, Karen and Nathan.
All Right, John Tucker, thank you time now for the
Bloomberg Sports update, brought to you by Flashing Bank. Here's
John Stashauer. John, Good morning, Good morning, Garon.
No one had a worst weekend than the Mets, the
worst three game series in team history. Even the one
hundred and twenty lost nineteen six sixty two Mets never
lost three games by twenty six runs. The Pirates won
nine to one and then nine to two. Then the
Mets tell the players only team meeting and lost twelve
to one, so outscored thirty to four. Carlos Mendoza's team
has lost thirteen to the last sixteen.
We are all frustrated.
Obviously, We're not gonna lie.
We're better than that, and they know that.
You know, it's a tough stretch, but.
We got to be better.
You know, it starts with me.
You know, we believe in those guys.
Off day tomorrow and then we got another.
Good team coming into town.
You know, on the Brewers.
The Rulers might be good, the Pirates are not. That's
what made this series so shocking. Pittsburgh has lost fifty
games since in last place. Mets are in second game
of half Pine the Phillies. The Yankees lead on Tampa
Bay and the Alias just one and a half. Yanks
at the Stadium beat the Ages twelve to five. Aaron
Judge with his twenty ninth and thirtieth home runs of
the season. Jazz Chisholm Howard also had a three run triple.
Marcus Stroman beat the one time Yankee yas Luis Sevarinos.
Stroman's first game since early April, lost at Toronto five
to three. The Nationals meet the Angels seven to four.
NBA free agency begins today, but the biggest names are stained,
but that includes Lebron James In his twenty third season,
Lebron will make fifty two point six million for the Lakers.
James Harden also staying in LA with the Clippers two
years eighty one million, and the ex Nick Julius Randall,
a year ago traded in Minnesota. Timberwolves just gave Randall
a new three year, one hundred million dollar deal. Wimbledon
begins today early this morning. Matches for Americans Francis Tiafo
and Madison Keys, as well as the women's South Cita
Rita Sablenka. Patrick Harrington won the Senior Open golf at
Colorado Springs. One of thoroughbred racing's greatest trainers has died.
D Wayne Lucas was eighty nine. His horse has won
fifteen Triple Crown.
Races 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 Day Break.
Good Morning on Nathan Hager, and the race is on
in the Senate to get President Donald Trump's big tax
and spending cut bill done by the end of the week.
But as a marathon round of amendment votes begins today,
at least one Republican North Carolina's Tom Tillis is urging
his colleagues to slow things down.
We've got a view on an artificial deadline on July
fourth that means nothing but another date in Tom.
It was North Carolina Senator Tom Tillis speaking on the
Senate floor this morning. We're joined by Bloomberg New Senior
Editor Bill Ferries and Bill We've seen so much drama
surrounding this bill, Senator even on Senator Tillis saying he's
not going to seek re election after opposing the legislation.
How much more drama can we expect today? Good morning,
Good morning.
Yeah, it's going to be a very interesting day. The
Senate coming back in after a late night they should
be in around nine am to start this so called
vote rama where they start taking up the amendments to
this legislation. And I think Republican leader John Thune behind
the scenes will be continue to be doing a lot
of armed time seen to get this through. Now that
voting on amendments, I mean, it's hard to know how
long that could take. It's in the pass gone anywhere
from twelve to fifteen hours, So in terms of a
final vote on the legislation, we could be talking about
very late Monday night, sometime early Tuesday morning there on
the East coast, but it's you know, that would be
that's the deadline they have to really meet if they
want to get it back to the House and have
this thing on the President's desk by July fourth. You
mentioned Tom Tillis, he was already under a lot of pressure.
Ran Paul looks like he's not supportive of the legislation.
So that's two of the three votes Republicans can afford
to lose and still pass this. So it's going to
be very much down to the wire.
Who are you watching in terms of Republicans who could
be wavering on this legislation.
Well, sure, I mean two at the top of the list,
it's going to be Susan Collins of Maine Lisa Murkowski
of Alaska. They have both had a lot of concerns
about some of the cuts to Medicaid benefits and say,
you know, they've expressed concern that too many people could
lose health coverage if this bill passes. So the Republicans
cannot afford to lose both of them. They could lose
one and still have JD Vance as a tiebreaker, but
if they lose both, the bill dies there and they'll
I think the Republican leadership will have to figure out
how to pick up the pieces.
And in the meantime, it seems like the price tag
on this legislation keeps rising when you look at what's
coming out of the Congressional Budget Office, and you have
to think a lot of Republicans, no matter which side
they stand on the spending cuts, have to be thinking
about the impact on the midterms next year.
Absolutely, the CBO scoring on this bill on the Senate
version so that I think it costs five hundred billion
dollars more over the coming decade than the House version.
That is going to be very difficult for particularly Republican
members in the House the stomach. They already any of
them already thought the bill was too expensive. Seeing it
increase by that much over the decade is going to
be it's going to be hard for them to support that.
So that's some of the arm twisting and tweaks I
think we might see in the amendments that come up
in the coming hours once the Senate's back in session.
Only about thirty seconds left. We got medicaid cuts to
think about, as well as the tax cut promises that
President Trump promised the middle class. What's the potential political
impact of this bill.
Well, I think if you do get you know, if
you do pass something that reduces taxes on tips, I
think that's going to be seen as a big win
by Trump and the Republicans. I think we have to
see if that salt tax deduction is something that Republicans
in the Northeast are happy with when this goes back
to the House.
This is Bloombery day Break, your morning podcast and the
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