Senate Reverses Course on Iran; Micron Soars on Forecast

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.
Can we begin with tensions flaring on Capitol Hill between
President Trump and Senate Republicans. President went into lunch with
members of his own party, upset over a vote in
the Senate rebuking his war with Iran. The President refused
to sign a bipartisan housing bill that Congress had just
passed ahead of the meeting. Afterward, the President put a
positive spin on it.
I think we had a really great meeting, and we're
very proud of the party. We like our leader, we
like everybody really in the room. I don't like a
few people, but that's okay. I think you know who
they are.
President Trump spoke to reporters on Capitol Hill after the
launch Bloomberg. Stephen Dennis reports Republican Senator Bill Cassidy drew
the President's anger for voting for the War Powers Resolution.
The way Cassidy described it as Trump asked who could
possibly have voted for this thing? And cassi said, do
you want the real answer? And Trump said yes, And
he said, well, you know, we haven't been briefed. You
said this war was going to last four weeks. It's
lasted four months. None of your original aims have been met, Bloomberg.
Stephen Dennis reports Senator Cassidy got a White House briefing
on Iran after the launch from Vice President Jade Vance.
By the end of the day, Cassidy said he shouldn't
have lost his cool.
I lost my temperament. That's not appropriate. It's the Irish eat.
Last night, Senator Cassidy and fellow Republican Ran Paul reversed
their votes and rejected a separate war powers resolution. Paul
posted on x that he voted president to give the
president more space and leverage to negotiate a lasting piece
Nathan All.
This provided the backdrop as President Trump took to the
National Mall for a rally marking America's two hundred and
fiftieth anniversary tonight.
As we stand on the edge of our two hundred
and fiftieth year of independence, I am thrilled to declare
that America is back.
And the President used his speech to defend the Around War.
For the first time in three thousand years, we are
finally going to have peace in the Middle East.
We're gonna have peace in the Middle East.
Since your agreement, the stock market and your four oh
one case are skyrocket upward, an oil price that are
plummeting downward.
Today it hit a new low.
And the world is a much safer place.
President Trump's speech kicked off a sixteen day Great American
State Fair on the Mall. Several artists pulled out of
the event, saying it was more political than they'd been
led to believe, so the President said he'd headline the
festivities himself well.
Turning overseas, Karen, the European Union is signing off on
its trade deal with the US. Let's go to London
get the latest with Bloomberg's ewen pods. Good Morning, Ewan, Nathan,
and Karen.
It has taken almost a year of talks, but EU
member states have finally approved the European Union's trade deal
with the United States, under the terms that e will
scrap levies on US industrial goods and some agricultural products
in exchange for a fifteen percent tariff ceiling on its
exports to the US. The agreements of the twenty seven
member countries comes just nine days before President Trump's deadline
good news for strained transatlantic relations, but plenty of disagreements remain,
not least on issues including metals, tariffs, and tech regulation.
In London, I'm youwing Pots.
Bloomberg Radio Right New and thank you. The deal comes
a day after NATO's Secretary General Mark Ruda met with
President Trump in the Oval Office. He was trying to
ease the President's anger over the reluctance of alliance and
nations to help with the campaign against Iran. Rut had
displayed posters highlighting how much more money NATO nations have
spent on defense since Trump took office. After the meeting,
Ruda spoke with Bloomberg's Balance of Power.
But I think it's important is to be fair, and
fairness dictates that this president's really doing a huge amount
of work to get NATO Embeta shape. You had a
big success last year, Indy hag with the five percent
spending commitment.
And NATO Secretary General Mark Rude told the Bloomberg's Balance
of Power. President Trump is committed to the alliance and
will play a critical role at a meeting of NATO
leaders set for next month in Turkey. Catch the full
conversation on our new video hub on Bloomberg dot Com
and the Bloomberg Business app.
Let's turn to markets now, Karen. The AI trade is
back in play. Nasdaq futures are up more than two
percent following earnings from Micron Technology. That stock is up
sixteen and a half percent pre market. The largest US
maker of computer memory chip says its revenue will be
approximately fifty billion dollars in the fiscal fourth quarter. That's
five zero and it's almost seven billion more than analyst estimated.
Gene Munster is managing partner at Deepwater Asset Management.
The street is start going to get more comfortable at
growth rates for the hyperscalers and the broad capax of
forty percent plus. And what that means is that these
companies are going to continue to grow faster for longer
than most investors expect. And despite all this skittishness within
the market, this is just an over just a resounding
endorsement that we are, in fact earlier than the most
believe in the build up.
It's Gene Unster of Deepwater Asset Management. Micron has also
secured sixteen strategic customer agreements averaging three years in length.
Napan Qualcom also giving a lift to chip stocks. Those
shares up twelve and a half percent in early trading
and its investor Day. The company forecast sales and more
than fifteen billion dollars a year by fiscal twenty twenty
nine in the booming market for AI components and data centers.
Shifting focus down from big tech to big banks. Karen,
those stocks will be in focus today after they passed
the Federal Reserve stress test. Bloomberg's Alexis Christoffers joins us
in New York with the details of access.
Good Morning, Nathan. The FEDS exam, which was an outgrowth
of the two thousand and eight financial crisis, showed that
all of the banks examined would maintain enough capital to
withstand a hypothetical economic downturn. As a result, JP Morgan, Chase, Goldman, Sachs,
City Group, Morgan Stanley, and Wells Fargo all increased their
dividend payouts. Bank of America says it will make its
next quarterly dividend announcement after its July board meeting. JP
Morgan also authorized a new fifty billion dollars share repurchase program.
The nation's six biggest banks paid out more than one
hundred and forty billion dollars in dividends and buybacks. Last year,
the firms collectively posted their largest annual profits since twenty
twenty one, on the back of record trading revenue. In
New York, Alexis Christophers Bloomberg Radio.
Right, Alexis, thank you. It's also a big morning for
economic news. We get the FEDS preferred reading on inflation
the Personal Consumption Expenditures price Index for the month of May.
Forecasters expected data to show acceleration on both a monthly
and year over year basis.
Well.
Karen Brent, oil is erasing all its wartime gains after
flows through the Strait of Hormo was ramped up following
progress on a US ron p steel the global benchmark
dropped below seventy two forty eight a barrel that was
its pre war closing price on a closing basis West
Texas Intermediate. It's also near its pre war price of
sixty seven oh two a barrel after it rallied to
a conflict peak of just above one nineteen in March.
As for what we're paying at the pump, the average
price of gasoline has dipped to just under three ninety
two a.
Gallon time now for a look at some of the
o their 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.
Two massive back to back earthquakes in Venezuela have killed
at least thirty two people and injured more than seven hundred.
The quakes toppled dozens of buildings and devastated the country's
main international airport. The magnitude seven point two earthquake on
Wednesday evening was followed a minute later by an even
stronger earthquake measuring seven point five, with its epicenter west
of Caracas. Associated Press reporter Juanarez, who lives in Caracas,
says it's the strongest he's felt.
Classes fell to the floor, neighbors are coming down to
the streets.
Acting Venezuelan President Delsi Rodriguez said more casualties were expected,
with the country declaring a state of emergency. The US
says it is sending resources in support. France's average daily
temperature reached an all time high of one hundred and
five as Europe's heat wave continues. It is so hot
tourist sites have shut down. This Paris visitor says it
would be better if museums open in the morning and
then close during the hottest part of the day.
You would rather close it like before the like twelve,
for example, and closed until the five and then open
it again so people can visit it in the innion
when it's not that hot outside.
Daytime high has reached one hundred eleven degrees in Pyo
in the West. The head of New York City's transit
system is standing by his decision not to sign an
agreement on Penn Station's renovation. MTA Chief operating Officer jen O.
Lieber says he does not want to enter a deal
with President Donald Trump without protections. The dispute comes as
President Trump Wednesday asked Congress to direct one billion dollars
toward renovating Penn Station. Global News twenty four hours a
day and whenever you want it with the Bloomberg News. Now.
I'm Michael Barr, and this is Bloomberg Karen.
Thanks Michael, all time now for our Bloomberg Sports update,
and for that we bring in John stash Hour.
Thanks Karen's doctor. Teams in the Al Central have been
playing all weight. The White Sox won the first two,
but the Guardians beat Chicago for three intendings to go
back in the first place. At the World Cup in Vancouver,
Switzerland beat Canada two to one. Switzerland wins the group.
Canada advances as well, and so does Bosney and Herszegovina.
Well.
The three to one went over Qatar and they could
be the US's opponent in the knockout round. The United
States team plays Turkey eight tonight. It's a meaningless game
for both teams. That's a Bloomberg Sports update.
Stay with us. More from Bloomberg day Break coming up
after this.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
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Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan hager Will. Tensions may have reached
a boiling point between President Trump and Senate Republicans over
the war where they Iran. Now, the Senate has reversed
course on a war powers resolution, but Republican Senator Bill
Cassidy says he doesn't regret speaking his mind.
The American people need to know more than we are
being told. The Senate needs to know, and it does
not appear, although I don't know for sure that the
course of this is going the way that we were told.
That was Senator Cassidy after a closed door lunch on
Capitol Hill with the President and a briefing later at
the White House. Joining us for more is Bloomberg DC
Breaking News editor Alexander Pearson and alex By all accounts,
it sounded like things got pretty heated behind closed doors
on Capitol Hill. Just how tense was it?
Good morning, Good morning, Nathan. Yeah, you're right, it was
a very tense closed door meeting yesterday at the Capitol.
What's interesting is it was originally thought to be a
discussion about housing bill that Trump had not given the
signature to, but actually then became sort of a shouting
match between Trump and for senators, in particular Bill Cassidy
about them voting for a War Powers Act on Tuesday.
So they crossed the aisle. They voted with Democrats for
this measure that essentially called for the war with Iran
to end or for the White House to seek congressional
authorization to continue it. Trump was opposed to the measure naturally,
and was very very angry with the Senators and that
very much came to the four yesterday in this meeting.
We have from from Senator Cassidy there, who really spoke
up to the president. What is interesting is that later
on in the day another vote was was had on
this and it was reversed. So Senate Republican leadership were
able to essentially signal to the White House that they've
been able to fall back in line with the White
House's wishes. But it certainly was a very tense state
between Hill Republicans and the White House.
So falling back in line, but does that sort of
paper over the concerns that Cassidy and presumably others may
have raised at this meeting about the progress that's being
made toward a more permanent piece deal with Iran.
Doesn't it p to be, you know, completely papered over there?
There's still lingering concerns about it. Cassidy did say after
his meeting at the White House that you know, some
of his concerns were allayed and for now they seem
to be falling in line. But yeah, under the surface,
there certainly are concerns about where the negotiations are heading.
Just given the uncertainty about the future arrangement for Homus,
what Iran will be willing to agree to, how Iranian
funds might potentially be unfrozen, and so this topic is
unlikely to now be a closed one. We're likely to
see more tensions in the future if the White House,
at least from the perspective of certain senators, is not
more forthcoming about where the negotiations are heading.
Now, you mentioned that the President canceled plans to sign
this bipartisan housing bill that I think Republicans were hoping
to be able to tout as a way to alleviate
many of American voter's economic concerns heading into the November midterms.
What's the status of that housing bill?
Now?
Yeah, that's right. So President Trump blindsided congressional leadership yesterday
by announcing on the hours before he was set to
sign this bill that he would not sign it. His
reasoning was he wanted a separate build of a voter
ide build known as the Save America actively passed first.
And the issue now is that he's withheld a signature
from the housing bill, but it will actually pass into
law after ten days even if he does not sign it,
and he well, he could vote Vito it as well,
and that would send it back and that could make
things a little bit awkward for the Republicans on the
Hill because they then have to vote again for it,
you know, positions of the White House. But House Speaker
Mike Johnson said yesterday that he believes President Trump will
sign it, and it does seem likely that in some
form it will pass eventually.
Interesting to have all these cross currents alex ahead of
the rally that President Trump publicized, you know, days before
all these tensions and was just held last night on
the National Mall in prime time. What's the message that
came out.
Of that, Yeah, very much a sort of classic Trump rally.
He you know, touted the return of America, you know,
under his leadership, and he he did address the war
with Iran, defending you know, his policy on that, saying
it was obviously an important war to ensure they wouldn't
get nuclear weapons. But he also then defended the White
House in terms of certain affordability concerns. So gas prices
have risen quite considerably in the US as a result
of the war, you know, he acknowledged that, but then
said now that it's over, those will be coming down
very quickly and should hit you know, pre war levels
very soon. And so for him, you know, the message
was very much there's nothing to really worry about. The
wars over and as we head towards the midterms, you know,
affordability will will not be you know, a major issue
for voters.
This is Bloomberry Daybreak, your morning podcast and the stories
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