Paxton Dominates Texas Primary; US-Iran Optimism

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 with politics and a Texas sized result.
In the Republican primary runoff for Senate. With nearly all
votes counted, State Attorney General Ken Paxton trounced four term
incumbent John Cornyn sixty three point nine percent to thirty
six point one percent. Paxton picked up President Trump's endorsement
just last week. In his victory speech last night, Paxton
gave the President the credit.
President Trump is the leader of our party and his
endorsement is the most powerful force in politics, and I'm
honored to have his support and I look forward to
working with him in the Senate to deliver for Texas.
Texas Attorney General Ken Paxton will now face Democrat James
Talerico in the general election in tall Rico is all
read coming out Swinging.
Three years ago, Ken Paxton was impeached by his own
party for using his public office to enrich himself and
his donors at the expense of the people. That kind
of corruption is the rot at the core of this
broken system.
Democrat James Tallerrico posted that on YouTube last night. After
Paxton's victory, Bloomberg Texas Bureau chief Julie Fine says, John
Cornyn's loss I mean a big change in the Senate.
This is somebody that rose the ranks of leadership, A
trusted advisor of Mitch McConnell, lost to John Thune to
become this speaker right now. So it's going to be
a major, major difference for the state of Texas. The
fact that Ken Paxon, who at times was an battled
attorney general who had a share of legal problems, one
by double digits really shows you where this race ended up.
Bloomberg's Julie Fine reports Cornin highlighted his pro Trump voting
record during the campaign and argued that Paxton won't be
able to raise enough money against tall Rico. That argument
came up short last night.
Well, Nathan, the Senate runoff wasn't the only race to
watch in Texas last night and the House, longtime Democratic
Congressman Al Green was ousted in a generational contest against
thirty eight year old Democrat Christian Menefee. Green was squeezed
into a new district thanks to Texas Republican's mid term
redistricting efforts. With nearly all votes counted, Menefee took sixty
nine point six percent of Green's thirty and a half percent.
Former Congressman Colin al Red defeated freshman and Democrat Julie
Johnson fifty three point nine to forty six point one
percent in the Dallas area district that he left a
run for Senate in twenty twenty four and in the
Republican run off to succeed Ken Paxton's attorney general, State
Senator Mays Middleton beat Congressmanship Roy fifty five point two
to forty four point eight percent.
Now, Karen, let's get caught up on the latest on
the war with Iran. The US is touting progress on
a peace deal even after fresh skirmishes around the Strait
of Hormuz. Bloomberg Middle East Managing editor Paul Wallace reports
a number of sticking points remain in the way.
Of a deal.
One of them relates to, and this is a big one,
the strait itself, and it is about whether the Iranians
will allow free passage of ships through the waterway if
and when there's an interim deal with the US, now
the US and Arab States, and Europe and frankly the
rest of the world. They want and demand that ships
have free passage through straight but Iran is insisting on
some kind of control.
In Bloomberg's Paul Wallace reports, Iran's nuclear program is another
bone of contention. A top member of Iran's nuclear negotiating
team says his country's highly enriched geranium stockpile is not
on the agenda in US talks, and until they've agreed
on all issues, they consider that they've agreed on nothing.
The officials spoke to reporters in Moscow at Russia's International
Security Forum.
On another news this morning, Nathan Joe Biden suing the
Justice Department. The former president is trying to block officials
from sharing audio recordings and transcripts of interviews he gave
for a memoir project that a conservative advocacy group and
Republicans in Congress. Lawsuit which puts a former president against
his successors administration, comes amid a long running legal fight
over a public records request for the materials by the
Heritage Foundation. Bonden filed his own legal challenge to stop
the disclosure, which is said to happen on June fifteenth.
Well, Karen, Terriffree funds are on the way right now.
More than twenty billion dollars is headed to importers who
successfully filed claims using the new web portal developed by
US Customs and Border Protection. The agencies in the process
of issuing refunds to importers who paid as much as
one hundred and sixty six billion dollars across more than
fifty three million import entries. The refund process gained significance
after the Supreme Court struck down portions of President Trump's tariffs.
Well, let's turn to the markets now, Nathan, where futures
are higher following another chip fueled rally for tech stocks
and Bloomberg, John Tucker joins us with the latest.
John, good morning, Good morning, Karen. Call it a chip frenzy.
Investors are betting the AI boom is going to lead
to a sustained revaluation of the industry. Micron Technology the
best performing stock at the S and P five hundred
and yesterday's session, finishing up more than nineteen percent. It's
up two hundred and thirteen percent so farthest here and
has now crossed above a market valuation of one trillion dollars.
It was joined by sk Heinez in that exclusive club
of Samsung Electronics hit that milestone earlier this month. These
are the three leading makers of high bandwidth memory and
with forecasts of memory shortages to last through twenty twenty seven,
and let's say these companies will now have remarkable pricing
power over the world's largest tech companies. In New York
Income John Tucker, Bloomberg Radio.
All right, John, thanks Carlos Group co founder David Rubinstein's
weighing in on the market rally. He spoke with Bloomberg
at the UBS Asian Investment Conference in Hong Kong.
There are animal spirits that come out in the equity
markets and fueled by two things. One the anticipated ibo
prices of open Ai, of SpaceX and of Vanthropic. I
think people are anticipating this as we'll have very high
valuations and that will fuel the market and.
Have an impact on other stocks.
Secondly, I think people are thinking the war will eventually
be over, and while we don't know when it's be over,
they think it's in sight and therefore I think that'll
fuel the equity markets and is fueling it right Now.
David Rubinstein is the host of The David Rubinstein Show,
peer to peer conversations on Bloomberg Television.
Nathan China's Bike Dance is planning to sharply increase his
capital spending this year and next. The developer of TikTok
and a leading force and artificial intelligence, is trying to
lead the Chinese AI market and challenge the top US
players abroad. Sources say the Beijing Bay social media leader
is discussing expenditures of as much as seventy billion dollars
this year as it builds out data centers and another
AI infrastructure.
And Karen Donald Newhouse has died. He's the American billionaire
who oversaw the newspapers at the heart of his family's
closely held media empire. New House's Sun says he passed
away as a state in Lambertville, New Jersey, after battling Lymphoma.
New House newspapers included The Newark Star, Ledger, The Plane,
d Learn Cleveland, The Oregonian, The Birmingham News, and The
Times Pickyun in New Orleans. Donald Newhouse dead at the
age of ninety six.
Time Now for 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 Michael Barr.
Michael, good morning, Good morning, Karen. The Trump administration plans
to send US citizens exposed to the ebolavirus to Kenya
rather than bring them home for observation and treatment. That's
according to The New York Times doctor Darien Sutton.
The current strain that's leading this current outbreak is called
the Bundi Bougo strain, and it's important to understand that
that strain has no vaccine or targeted treatment, and so
all of these variables of what is likely leading to
an equation. Unfortunately that means more cases and likely record
breaking numbers that we will only we have only yet
to see.
Doctor Darien Sutton spoke to ABC. There are a reported
nine hundred and thirty suspected cases and more than two
hundred and twenty deaths and is spreading in a remote
part of eastern Congo. At least one person has died
and nine others remain unaccounted for. After a chemical tank
imploded at a pulp and paper mill in Washington State,
emergency responders in Longview plan to resume recovery efforts. This
morning at the Nippon Dinahway Packaging Company, Washington. Governor Bob
ferguson On.
Behalf the people to say to Washington, I want all
those individuals know that we stand with you. We'll be
here to everything we can to help with the situation,
and we'll be here as long as it takes.
Governor Ferguson and other authorities say they are being hampered
by ninety thousand gallons of the dangerous liquid that remain
in the unstable tank. New York Mayor Zoron Mamdanni announced
a massive public housing plan, pledging to build two hundred
thousand affordable homes. Ma'm donnie proposed spending twenty two billion
dollars on housing over the next five years, including five
point six billion to improve public housing.
We can keep people in their homes and we can
build the homes that they need to live in. We
have spoken about this crisis long enough. It is now
time to do something about it. Our housing plan meets
this crisis with the scale and urgency it demands.
Mayor Mamdannie says his plan calls for zoning changes in
some neighborhoods that are not building enough housing. Global news
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with Bloomberg News Now, Tom, Michael Barr, and this is
Bloomberg Carent. Thanks Michael.
A time now for our Bloomberg Sports Update, and for
that we bring in John stash Hour.
Thanks Darin. Last two years, the Oklahoma City Thunder have
only lost nine times in the playoffs, and each time
they've followed the loss with a win. They got blown
out in Game four it San Antonio, they came home
beat the Spurs one twenty seven to one, fourteen Shay
Gildes Alexander score thirty two, and the Thunder now lead
the series three games to two. A sweep of the
Stanley Cup playoffs. Vegas beat Colorado two to one. Swept
the West Final from the Avalanche, who had the best
record in the regular season. A couple of upsets at
the French Open. Jess Picgol and d Neil Medvedev both lost.
That's to Bloomberg Sports Update.
Stay with us more from Bloomberg Day Break coming up
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Bloomberg Business app. This is Bloomberg Daybreak.
Good morning.
I'm Nathan Hager. The Texas Senate runoff has led to
a runaway victory for Ken Paxton. After winning President Trump's
endorsement last week, the state attorney general defeated longtime incumbent
John Cornyn, and, as he puts it, Senate Texas sized
message to Washington.
I said it in March, and I'll say it again
now today. Change was on the ballot, and change one.
Ken Paxton in his victory speech last night. Joining us
this morning after is Terry Haines, the founder of Pangaeopolicy.
Great to speak with you again, Terry, and I think
after last week's election results you put sixty percent odds
of Republicans taking full control of Congress in November. There's
much reason to change that prediction after last night.
Good morning, Good morning, Nathan. Yes, I will stick to
the sixty percent likely. The reason I think what markets
learned from last night's Texas results particularly is that the
old mainstream Democrat friendly narrative for the midterms is getting
upended by a combination of Republican redistricting gains, increased Republican
voter enthusiasm and a Trump Republican money advantage going into
the fall that hasn't yet been fully seen. So that's
going to even out the playing field a lot. And
what that nets today five months out is a Republican
advantage in holding holding the Congress.
Of course, during the campaign, Senator Cornyan argued that Paxston
is going to be in albatross around other Republican candidates. Next,
we've already heard from his November opponent, James taal Rico
in a YouTube video last night, already highlighting a lot
of Ken Paxton's scandals in the past. Is there a
risk that this nomination backfires on Republicans?
Oh sure absolutely. You know, the media and political professionals alike.
I think will be fascinated by the Texas Senate race
because it matches two wildly imperfect candidates. Paxson is, of
course the Trump based candidate, as you see with that
sort of thumping primary victory, but he gets dogged by
long standing ethical challenges, a polarizing style. The question really
will be is he a kind of a high floor,
low ceiling person politically speaking? The Democrat taal Rico, though,
has his own problems. He's never run statewide, has no
demonstrated appeal to a wide variety of swing voters in Texas,
which is a very diverse state. He's very easy to
Austin code, you know, kind of claiming he's kind of
a typical of the Austin style liberal. And he's been
competitive so far, but he hasn't been strong. He's never
gotten over fifty percent in polls, and Texas is a
right leaning state. So the question really is what does
Texas revert to type or does it not.
He's got a pretty big money advantage as well. He's
raised a lot of money since the primary election on
his side. Does that make a difference in this race?
His Tall Ricos yes.
That.
That'll help him certainly. But the question is where does
the money come from? And it's a two edged sword
because on the one hand, if it's if it's smaller
dollar donations that accumulate, if it's local people, local Texans, others,
that's one sort of look. If it's the National Democratic
Party piling money in, that's a different look, and it
says a couple of different things. One is, you know,
national Democrats will see tall Rico as some sort of
savior of the kind that's you've seen a lot in
Texas over the past several decades. The so called centrist
Democrat who never ends up winning and the influx of
National Democratic money also carries a lot of baggage with
it in Texas, where people will think the National Party's
trying to steal an election.
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