Tax Bill Hits Republican Resistance; Trump's Tariff Threats Continue

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 President Trump's massive tax
and spending cut bill is now.
Back before the House.
The legislation barely passed the Senate with a tie breaking
vote from Vice President jd Vance, but now it's running
into resistance from Republicans who don't like some of the
changes to the bill. House Speaker Mike Johnson says he's
not surprised.
We knew we would come to this moment. We knew
the Senate would amend the House product. I encouraged him
to amend it as lightly as possible. They went a
little further than many of us would have preferred.
House Speaker Mike Johnson says moderates in his caucus are
worried about the scale of Medicaid cuts, while ultra conservatives
are vowing to oppose the bill over its deficit impact.
President Trump is calling resistant republicans grand standards. GOP leaders
hope to vote on the bill today to get it
to the President's desk by the end of the week.
Meanwhile, Nathan. There's just one week left until President Trump's
July ninth deadline to raise tariff rates on dozens of countries.
The President says he's not considering any delays, and he's
renewing his threat to cut off talks and impose higher
rates on several nations, including Japan. President Trump is sounding
more optimistic about reaching a deal with India. He says
it's possible to lower the country's tariffs if India allows
US companies to compete in its market.
Let's turned to new developments in the Middle East. Karen.
President Trump says Israel's agreed to terms for a sixty
day ceasefire in Gazap. He's warning Hamas to accept the
deal before conditions get worse. But Bloomberg Jerusalem reporter Dan
Williams says there is no sign the militant's group position
has changed.
It would appear its conditions remain firm. Those conditions are
for full as ready withdrawal or actually, more precisely, and
this really declaration that this war is over with a
full withdrawal of troops and tanks from the gods strip effects.
We hum us once a guarantee that once it delivers
all the hostages it still holds some fifty people, then
it will be effectively provided immunity from an Israeli offensive
design from the outset to topple it from power and
to disarm it.
Bloomberg's Dan Williams says Israeli Prime Minister Benjamin Netanyahoo plans
to visit the White House next week.
As for the war in u Ukraine and Nathan, the
Trump administration has halted weapons transfers to Kiev as Russia's
attacks intensify. The White House confirmed or report from Politico,
which said the Pentagon's under Secretary for Policy spearheaded the
move on concerns US stockpiles had run too low. The
move comes days after Russia launched its heaviest attack yet
over the weekend, a record five hundred and thirty seven
drones and missiles fired across Ukraine. Following the weapons review,
the White House issued a statement saying, this strength of
US armed forces remains unquestioned. Just ask you run.
Certain markets now.
Karen futures are higher just a bit ahead of to
my Irro's key jobs report, FED Chair J. Powell says
the Central Bank would likely have already cut interest rates
this year if not for President Trump's use of tariffs.
Powell spoke at the European Central Bank Forum in Central Portugal.
In effect, we went on hold when we saw the
size of the tariffs and where and essentially all inflation
forecasts for the United States went up materially as a
consequence of the.
Tariffs and remarks heard live here on Bloomberg.
Fed Shair Jay Powell said he's focused on maintaining the
Fed's duel mandate despite political pressure to move on rates.
The fed's next rate decision is July thirtieth.
Nathan, We're keeping an eye on bank shares this morning
after Wall Street's biggest lenders boosted their dividends, and we
bring in Bloomberg's John Tucker with more.
John, Good Morning, Good morning Caring.
JP morgan Chase, Goldman, Sachs, and Bank of America among
the big Wall Street lenders that are raising their quarterly
payouts now. This payday for investors also includes a fifty
billion dollars share buyback from JP morgan Chase. The move
comes after the bank's pass that's the annual FED stress
test product at a two thousand and eight financial crisis,
The Fed's exam sets the tone for how aggressive banks
are in returning capital to shareholders. All twenty two banks
comfortably passed after determining they could withstand more than five
hundred and fifty billion dollars in losses if some financial
disaster took place. The FED said the results showed that
the large banks are well positioned to weather a severe recession.
It's important to know if the test didn't get easier
this time around. Among the shares trading this morning pre market,
JP Morgan Chase up one half of a percent. I'm
John Tucker, Bloomberg Radio.
All right, John, thanks for also watching shares of Senteen
this morning. They are plunging nearly twenty six percent. The
Health INSURAN polled its twenty twenty five guidance centen focuses
mostly on Medicaid and the Affordable Care Act insurance marketplaces.
It says in early analysis of data showed a significant
revenue hit.
Nathan Tesla delivers his latest quarterly sales report later this morning.
Analyst expected to teve percent drop from last year. The
stock is off to a rough start for the third quarter,
with Elon Musk and President Trump renewing their feud over
the tax and Spending cut Bill. Tesla shareslaw more than
five percent yesterday. They're hired this morning up one percent.
And Karen Paramount Globals reached a settlement with the President
over his lawsuit alleging election interference by CBS News. The
network showed two versions of a sixty minutes interview with
then Vice President Kamala Harris back in October. Paramount agreed
to pay sixteen million dollars including plaintiff's fees, with the
rest going to a future presidential library. President Trump was
seeking twenty billion dollars. No money will go to him directly,
but this deal is seen as critical for Paramount to
gain federal approval for its pending merger with Skydance Media.
Time now for a look at some of 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.
A federal jury deliberating the fate of music mogul Sean
Diddy Combs in New York will returned for a third
day of deliberations today. The jury reached verdicts Tuesday on
all but one of the five counts. The hip hop
mogul faces the top charge of racketeering conspiracy. The judge
ordered the jury to continue deliberating. Robert Mintz is a
partner at McCarter and English and spoke with Bloomberg Law
host June Grosso.
It would suggest that perhaps they have found unanimity on
the other charges in the sense that they have returned
a guilty verdict. That would be probably what most prosecutors
would read into that decision, but we won't know until
the verdict is actually read in open court.
Robert Mintz with Macarter in English, speaking with Bloomberg Law
host June Grosso. The jury's partial verdict remains under wraps
for now. Brian Coberger has agreed to plead guilty to
murdering four University of idahost students as part of a
deal with the prosecutors to avoid the death penalty. A
change of place hearing is set for today. The thirty
year old Coburger is accused in the stabbing debts at
a rental home near campus in Moscow, Idaho, in November
of twenty twenty two. The police has deeply divided the victims' families.
Steve Consalvis The father of one of the victims, Kailey Consalvas,
says he is strongly against it.
Shut up and get on board and deal with it.
That's really what they told. They failed me, They failed
my whole family. It's our children. How can you How
can you say it's just when you haven't even talked
to us to see what justice looks like.
The other victims included Ethan Chapin, xanak Coordinidle, and Madison Mogulden.
The Trump administration is holding back close to seven billion
dollars in support of students learning English, summer programs and
after school programs. The Education Department is notified state education
agencies that the funds would not be available. Little explanation
has been given as to state officials are expected to
challenge the moves as illegal. Global News twenty four hours
a day and whenever you want it with Bloomberg News Now.
I'm Michael Barn. This is Bloomberg Carrot.
All right, Michael Barr, thank you time now for the
Bloomberg Sports Update, brought to you by Flushing Bank. Here's
John stash Hour, John, Good morning.
Good morning, karreon Yankees play at Canada Day matinee in Toronto.
They led to nothing early, then trail four to two,
tied the game top of the seventh inning, but in
the bottom James re took the lead in We're hardly
done there.
George Springer is up.
There is energy in this ballpark right.
Now center field.
It's going.
It is gone. What a see here at the Rogers Center.
George Springer with a clean slam.
Took blow it open on TSN seven RBIs for Springer.
The Jays one by seven, twelve to five. They've won
five to the last six, twenty one of thirty one.
The Yanks over the last two and a half weeks
just six and eleven in Toronto, only one game behind Tampa.
Bay lost the race field by game and a half.
Rainouts throughout the Northeast. Mets and Brewers will now have
a city Field Day night doubleheader today, also post Plumman's
in Philadelphia and Washington and Boston. The Red Sox led
the Reds two to one fourth inning when they couldn't finish.
They'll do so today. They'll start the second round at
Wimbledon today. The first round saw four of the top
nine seeds in both the men's and women's singles lose,
including Coco Goff, who just won the French Open, Jess Pagoula,
who just won the grass Court tune up in Germany.
Pegoula had not had a first round Grand Slam defeat
since twenty twenty. Alex Savera had not had one since
twenty nineteen.
He lost as well.
Miles Turner, with Indiana for a decade, just helped them
get to the finals, leaving the Pacers to sign with
the Bucks Milwaukee Wave. Damian Lillard he becomes a free agent.
He's unlikely to play next season due to his achilles injury.
Shay Gilgess Alexander that a season where he won the
scoring title, the regular season MVP and the finals MVP.
Only others to do that. Kareem Michael and Shaq Sga
cashing in super max deal with Oklahoma City that will
pay him seventy one million dollars a year.
John stash Elwer Bloomberg.
Sports Coast to Coast on Bloomberg Radio nationwide, on Serious
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the Bloomberg Business album. This is Bloomberg Daybreak.
Good Morning, I'm Nathan Hager, and President Donald Trump's One Big,
Beautiful bill is running into new resistance from Republicans now
that it is back before the House with changes from
the Senate. House Speaker Mike Johnson says his members are
headed back to Washington though for a final vote that
he hopes to pull off today.
They're on the way back. Of course, we have weather
delays all around the countries. There's seen lots of complications.
But welcome to Congress.
Welcome to Congress, says House Speaker Mike Johnson. Joining us
now Bloomberg News Global Business editor Josh Galoo. You can
have multiple meanings to welcome to Congress, just from the
fact of seeing how the sausage is made.
Josh, good morning. Is this a case of here we
go again with this bill?
It looks like it. You know, the House voted, of
course in May on the initial bill, and then it
went to the Senate and had several changes, and every
indication from some of the Republican holdouts, both from May
and since then that have been you know, some of
the skeptics, every indication is that they're still against many
of the main provisions of this bill. So I think
Johnson has a very very steep hill to climb today
if they're going to try and pass it. You know,
many of the ways that they're trying to pay for
these big tax cuts hit programs like Medicaid or food
assistance programs that impact several constituents in republic in lawmakers' districts.
So they're loath to get on board with something like that.
And we'll have to see today. You know, it'll be
a tough day of debate, but there are strong indications
that they're not going to be able to get over
the over the line today. I mean, he can only
afford to lose three Republican votes to get this through,
so and there are certainly more than that that are
voicing some skepticism.
And you've got to think, Josh, that those moderate Republicans
who might be concerned about the Medicaid cuts are feeling
sort of dueling political pressures here from their constituents who
might be concerned about some of those cuts, and from
President Trump, who can put his own thumb on the
scale pretty severely.
Absolutely, he has he is this is a central pillar
of his domestic policy agenda, and he hasn't he's you know,
he's he's said as much that he's going to go
after people who in primaries, et cetera, who don't get
on board with this bill. And you know, we've seen
in the past he's able to twist people's arms and
get it done so well. This is a real test
of you know, Republican solidarity here and how far people
are willing to go to stand up for certain principles
that they're really committed to, as opposed to going along
with the President who has some other ideas.
Speaking of other ideas, you've got on the other side,
the ultra conservatives who are sounding like they're standing pretty firm,
at least some of them sound like they may be
just because of the deficit impact from this. I mean,
this is a pretty wide herd of cats for House
Speaker Johnson to try to corral around.
Yeah.
Absolutely, there's no one single issue that's going to get
all those Republican skeptics on board, right and as you
say that this is going to add trillions to the
deficit over time, and you know, some of the assumptions
that are built into the models for this about grown
growth and how that's going to pan out with tax
cuts are hotly debated, not just by Democrats, but also
by Republicans. And we've already seen, you know, early when
this first began in April, we saw the bond market
reacting quite starkly. So the physical conservatives are definitely not
happy with the kind of the kind of debt this
is going to pile on the country in the long term.
Okay, So while President Trump is trying to twist arms
with his own Republicans, it sounds like he's trying to
trust some arms as well ahead of the July ninth
tariff deadline, particularly with Japan.
How's that going.
So Japan is the latest target here, and you know,
Trump has said that they he's trying to push for
them to open up to US rice exports. Japan is
standing pretty firm right now, and the question is whether
what tack they're going to take, you know, if they're
going to continue to have sort of a friendly exchange,
or if this is going to push them to back
up against the wall, to stand firmer against his demands.
And you know, they are part of a whole range
of countries that have been wrapped up in negotiations since
he paused these broad tariffs in April for ninety days,
and the deadline is coming right, so similar to the
tax bill, he wants to after the July fourth weekend
come out with his one big, beautiful bill, and he
also next week wants to roll out all these trade agreements.
But really the UK and China are the only two
that have shown significant progress and deals, so I think
the administration is also quite aware that they're about to
miss some targets and want to have something to show
for it, and trying to pick up the pressure.
In the meantime, this is Bloombery day Break, your morning
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