Two Israeli Embassy Staffers Killed in Washington; Republican Tax Bill Vote

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'll have the latest on the debate over the
Republican tax cut bill in just a minute, but we
have to begin this morning with a deadly shooting in Washington,
d C. Two staff members of the Israeli Embassy were
shot and killed while leaving an event at the Capitol
Jewish Museum. The suspect was identified as thirty year old
Elias Rodriguez of Chicago. Police say when he was apprehended,
he yelled free, Free Palestine. Here's DC Mayor Muriel Bowser.
There is no active threat in our community. What I
do know is that the horrific incident is going to
frighten a lot of people in our city and in
our country.
That was Washington, d C. Mayor Muriel Bowser, and in
a social media post early this morning, President Trump said, quote,
these horrible DC killings based off obviously on anti semitism,
must and now hatred and radicalism have no place in
the USA.
Now, Nathan to the debate on Capitol Hill. The House
is in session right now. Debating a final version of
President Trump's signature tax and spending cut bill. Republican leaders
issue the revised tax last night. It includes a higher
forty thousand dollars limit on the state and local tax
deduction to win over Republicans from high tax states. And
it speeds up work requirements for Medicaid and ends Biden
era clean energy tax breaks. That's to a piece hardline conservatives.
Indiana Congressman Aaron Houshin says there's a lot for Republicans
to like.
The bill requires states to have skin in the game
on snap. The bill requires states to be more responsible
about how Medicaid is funded. The bill provides needed tax
really for seniors.
These are good things, Republican Eron Houschin spoke in the
House floor last night. But Democrats like Congressman Jim and
governor of Massachusetts are lined up in opposition.
Democrats will not stand by and watch Trump and his
billionaire friends destroy this country without putting up one hell.
Of a fight.
Congressman Jim McGovern and the Democrats would need just a
handful of Republicans to join them to stop the bill.
But House Speaker Mike Johnson is hoping to pass the legislation.
This morning, before lawmaker's leave from Memorial Day recess and.
The White House Karen, President Trump had a tense encounter
with South African President Cyril Ramaposa. The South African leader
came to the Oval Office to try to reset relations
after the President allowed minority white farmers from the country
to claim refugee status in the US. Rama Posa brought
two white golfers and his white agriculture minister with him.
I would say, if that was Afrikana farmer genocide, I
can bet you these three gentlemen would not be here.
Mad comment from President Cyril Ramaposa led President Trump to
call on White House staff to dim the lights and
play a video of crosses representing white farmer deaths, with
thousands of is.
Talking about it.
Surely we have documentaries, we have news stores.
And President Trump's confrontation with Ramaposa comes three months after
a similar encounter with Ukrainian President Vladimir Zelenski. A Ramaposa
spokesman says it was definitely an ambush.
Let's turn to the market, s Nathan Bond. Investors are
pushing back against President Trump's tax cut play, and we
give that story with Bloomberg's John Tucker.
John, good morning, Good morning, Karen. This is a warning
sign from the bomb market. The yield on the thirty
year US government bond pushing to around five point one percent,
around a two decade high. The concern is that the
tax bill would add trillions of dollars in coming years
to the already bulging budget deficits. At the same time,
investor appetite for US assets that's drying up a bit
across the world. It's a combination that could make interest
rates go higher. Still, it's a challenging environment for investors
like Sandy Villery, portfolio manager for Villery and Company.
You look at what happened in twenty twenty five so far,
all about the tariffs. Now we've got the new bill
that's going to certainly increase deficits a little bit. And
we had a you know, the twenty year auction was
certainly weaker.
And this all follows the credit down great of the
US by Moodies last week. George Cantrebone, head of fixed
Income and Trading at DWS America, says, make no mistake,
the bomb market will have its own vote on the
terms of the budget bill in New York. I'm John Tucker,
Bloomberg Radio.
All right, John, thank you. Well, it's not just treasury
yields rising lately. So is bitcoin. Earlier this morning, the
cryptocurrency topped one hundred eleven thousand for the first time.
Right now, it's at one hundred and ten three hundred.
Bitcoin's latest milestone comes as President Trump prepares to meet
with the biggest holders of his meme coin at a
dinner tonight at his golf club just outside Washington, DC.
Bitcoins so far this year is up seventeen percent.
Nathan JP Morgan Chase CEO Jamie Dimond says he cannot
rule out the US economy will fall into stagflation as
the country faces huge risks from geopolitics deficits in pri pressures.
He spoke earlier this morning to Bloomberg at the Bank's
Global China Summit in Shanghai.
I think there's a.
Chance that things will You'll have stagflation. So much saying
is going to happen. I don't want to read to
say he's predicting this. I'm not, but we have to
be prepared for something like that. I think the global
fiscal deficits or inflationary. I think the remilitarization of the
world is inflationary. The restruction of trade is inflationary. And
this is not all American thing.
JP Morgan Chase chief Jamie Diamond speaking with the Bloombergs
has Linda Amman at the Bank's Global China Summit in Shanghai.
For the full conversation, head over to the Bloomberg Podcast
channel on YouTube and.
Karen former New York Fed President and current Bloomberg opinion
columnist Bill Dudley's calling for more transparency and clearer communication
from the FED to better prepare markets and facilitate a
smoother policy transmission.
The CD is basically an outlier. Every other central bank
does this in one form or another that are peers
of the FED, and this would actually help the FED
to both communicate and also pivot when things turn out
to be different than they expected. If you had that
scenario in say twenty twenty one, twenty two, that inflation
might stay higher for longer, that probably made it easier
for the FED to terminate its large scale acid purchase
program earlier.
I was former New York Fed President and Bloomberg opinion
columnist Bill Dudley. The Central Bank is reviewing its current
monetary policy framework, out sets interest rates, looks at unemployment,
and communicates changes to the public. That happens every five years.
The Fed's last review was in twenty twenty.
Hey, then, President Trump is floating the possibility of taking
mortgage giants Fanny May and Freddie Mack public and May.
Get the very latest. It's Bloomberg's Lisa Mattail, Lisa, good morning.
Good morning, Karen. The two companies have been under government
oversight since the two thousand and eight financial crisis. Now
both they've returned to steady profitability, with earnings being retained.
In a post on truth Social President Trump said he
would talk over that decision with Treasury Secretary Scott Best
and Commerce Secretary Howard Lutnik and Bill Poulti.
Poulty, he's a director.
Of the Federal Housing Finance Agency, which actually oversees Freddie
Mack and Fanny May. So what could this do well
the move It could help provide billions of dollars to
the US government, kind of soften those concerns about the
impact of the President's signature tax cut legislation to the deficit.
It could also give a boost to allies like Hedgephne
manager Bill Ackman, who's Pershing Square Capital Management has invested
in the companies. But then you have critics who say
it comes.
With risks, especially over.
How much of a government guarantee Fanny and Freddy could
still have, which could essentially put more pressure on mortgage rates.
Lisa Matteo, Bloomberg Radio.
All right, Lisa, thank you. And in deal news, Honeywell
has agreed to buy Britain's Johnson Matthew's Catalyst technology business
for an enterprise value of about two point four billion
dollars in cash. This gives Honeywell a business that serves
pharma and agrochemical companies and has a pipeline of more
than one hundred and fifty projects to help the shift
to fewer emissions.
And it's time now for a look at some of
the other their stories making news in New York and
around the world. And for that we're joined by Bloomberg
to Michael Barr Michael, good morning.
Good morning, Karen. A federal judge says to Winehouse violated
a court order on deportations to third countries with a
flight link to South Sadan Judge Brian Murphy and Boston
said the eight migrants aboard the plane were not given
a meaningful opportunity to object that the deportation could put
them in danger. Trina Riamuto is with the National Immigration
Litigation Alliance.
The government is still refusing to provide due process to
our clients, which means they are not giving them notice.
The Justice Department has moved to cancel settlements with Minneapolis
and Louisville that called for an overhaul of policing following
the killings of George Floyd and Breonna Taylor. Minneapolis Mayor
Jacob Fry who claimed the changes will still be made.
Minneapolis is serious about our commitment to police reform, even
if the President of the United States is not. We're
going to move forward with that work with or without
the White House.
Flood advisories are in effect for the New York area.
Bloomberg Meeta Religious Craig Allen has the latest.
This is horrible weather for late May as we approach
the holiday weekend here. This is part of the same
system that spawned over one hundred and sixty tornadoes over
the last three days across the central portions of the
United States. Now it is in a much weakened form,
but we are going to get doused by rain heavier times.
There will be flooding right through the morning commute. Bloomberg
Meeting religist Craig Allen. Testimony from Sean Diddy Combe's sex
trafficking and racketeering trial continues today. Combe's former assistant George Kaplan,
was on the stand yesterday. Kaplin has been granted immunity
from prosecution for his testimony. Global News twenty four hours
a day and whenever you want it with Bloomberg News
Now Now Michael Bahren, this is Bloomberg Karen all.
Right, Michael Barr, thank you time now for the Bloomberg
Sports Update. Here's John stash Hour. John, good morning, Good morning.
You are the next. In the first two rounds of
the playoffs had their sheriff comebacks and games pulled out
at the end. But Indiana was doing the same thing.
Miracle rallies to beat Milwaukee and Cleveland and the game
one of these finals of the Garden, another huge comeback
by the Pacers. The Knicks, with seven and a half
minutes left, had a sixteen point lead, Patrins chipped away.
Aaron Nesmith hit six three pointers in a five minutes span.
He made three threes and thirty seconds. When Time's Halliburton
had a shot at the buzzer, it looked like a
game winning three, but his toe was on the line,
so it forced overtime and ot Pacers held the lead.
At the end, he was Druncheon bog down by free.
Here is a free for the time short caught play
hot out to times to tie yo Lee.
Bound foot for loose pitches.
Has cut it clock his chicken out of bounds.
It's Indiana's ball at point two to go on TNT.
Indiana stole Game one one, thirty eight, one, thirty five,
Haliburton thirty one points. Neissmith scored thirty took nine three pointers,
missed only one in defeat. Jalen Brunson forty three points.
Karl Anthony Towns went for thirty five. Game two tomorrow
as expected Oklahoma City Shay Gilgess Alexander is the NBA's
MVP dram at the Garden and in the Bronx Jason
Domingue is a walk off home run to start the
bottom of the nine to eight Yankees. The four to
three win over Texas much needed win for the Mets
five to one over the Red Sox. The Dallas Stars,
with a five goal third period, beat Edmonton sixty three
to start the NHL's West Final. The Tush Push survives.
The vote to Bennett was twenty two to ten. Twenty
four votes were needed. A long time Indianapolis Colts owner,
Jim Ursay has passed away at sixty five. It was
his father who moved to Colts from Baltimore to Indie.
Jim Ersay took over at nineteen ninety seven. It had
health issues the past two years. John Stashnewer Bloomberg Sports, Karen.
Nathan Coast to coast on Bloomberg Radio, nationwide on Sirius
Exam and around the world on Bloomberg dot Com and
the Bloomberg Business app. This is Bloomberg day Break.
Good morning. I'm Nathan Hager. They have been at it
all night and into the morning on President Trump's One
Big Beautiful Bill Act. The final version of the massive
tax and spending cut package has changes meant to satisfy
both ends of the Republican spectrum. Heading into the final vote,
House Speaker Mike Johnson was hopeful, this is a massive.
Piece of legislation.
We're lots of moving parts, so we'll see what happens,
but I think we're going to get this job done,
and we're going to do it by Memorial Day.
That was how Speaker Mike Johnson, ahead of the debate
now underway on Capitol.
Hill, addresses the cap on salt and provides tax relief
to hard work.
This is New York Republican Mike Lawler, who had been
one of the Republican holdouts pushing for a higher state
and local tax deduction limit in this legislation. Joining us
for the very latest is Bloomberg News Senior editor Bill Ferries. Bill,
Good morning. It did take a lot of changes to
get this bill to where it is on Capitol Hill.
Can you walk us through some of them? Good morning, Yeah,
Good morning, Nathan.
As you set it up there, it looks like we
are getting very close to that vote up on the
House side. And what has really gotten us there the
breakthrough was appeasing. I think both ends of the Republican
spectrum here who were in opposition to this legislation just
a few days ago. So they have raised that deduction
for state and local taxes up to forty thousand dollars
with some changes that come in the years ahead, allowing
it to increase a bit with inflation and things like that.
And they've also decided to speed up some of the
cuts to Medicaid that have made it quite controversial with
both Democrats and even some Senate Republicans. But some of
those cuts to Medicaid coming as soon as December twenty
twenty six, which is interesting timing, of course, because that
will be just after the mid term elections. So both
sides on the both sets of opponents on the Republican
sign getting a little bit more of what they wanted.
But I think even with a possible passage early this
morning in Washington, there is a long road ahead for
this bill once it heads over to the Senate.
Yeah, certainly it raises the question, doesn't it, of whether
any of these changes will survive Senate scrutiny.
Yeah.
Absolutely. I mean the Medicaid cuts, we've already seen a
number of Republican senators talking about it even when they
weren't being accelerated to the end of next year, So
that's going to be a real sticking point. A lot
of those red states have a lot of Medicaid clients
on their roles, so it's it's going to be a
big fight. This is not done yet, but it does
look like an important victory perhaps for Speaker Mike Johnson,
assuming he can get through the next couple hours and
get this vote passed.
In our last minute bill. Not too far from Capitol Hill,
we've had a really unsettling incident outside the Capital Jewish Museum,
a deadly shooting overnight.
Yeah, it looks like around nine pm last night, a
young couple leaving an event at the Capitol Jewish Museum
near near third in f Street downtown shot and killed
by a gunman who apparently had been kind of walking
back and forth out front and was, according to witnesses,
saying free, Free Palestine. He was taken into custody and
seems to be talking to police. But obviously a big
outpouring of support for the victims and their families from
Israel's President, Prime Minister Donald Trump, Senate Democratic Leader Chuck Schumer,
and of course Mayor Muriel Bowser and others. So very
tragic event last night on the streets there of downtown
d C.
This is Bloomberg Daybreak, your morning podcast on the stories
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