Marines Deployed To LA, US-China Talks Continue, Apple’s Big Revamp
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This is the Bloomberg Daybreak Europe podcast, available every morning on Apple, Spotify or wherever you listen. It's Tuesday the 10th of June in London. I'm Caroline Hepke. And I'm Stephen Carroll. Coming up today, US President Donald Trump deploys the Marines to Los Angeles in response to anti-deportation protests.

as Democrats accuse him of inflaming tensions. Europe's IPO drought leaves stock exchanges battling for listings in an increasingly shallow pool. Plus, focusing on core changes, Apple unveils the most sweeping software redesign in its history, as its troubled AI efforts take a backseat. Let's start with a roundup of our top stories.

We begin with the unrest in Los Angeles. The Trump administration says it is deploying 700 Marines to the city as political tensions with Democrats grow. The White House says conditions in LA are spiraling and that federal forces are needed to support immigration agents and restore order.

President Donald Trump and California's Governor Gavin Newsom have clashed repeatedly over the response to the unrest, with the state suing the Trump administration for mobilising National Guard troops in the city. Here's Los Angeles Democratic Mayor Karen Bass. They're guarding the federal building here in downtown and they're guarding the federal building in Westwood. That's what they're doing. So they need Marines on top of it?

I don't understand that. That's why I feel like we are part of an experiment that we did not ask to be a part of.

Mayor Karen Bass speaking there as the United Nations on Monday warned against a further militarisation of the situation in LA. On Monday, largely peaceful daytime protests morphed into a fourth day of scattered clashes with police. The protests, which have been largely limited to a few small parts of the city, were sparked by a rising number of raids by immigration agents, which local officials argue have spread fear in immigrant communities.

Now, to the trade talks I mentioned, US-China trade talks will continue for a second day in London as both sides seek to ease tensions over rare earth supplies and tech exports. Bloomberg understands that the US is offering to ease some tech export controls in exchange for rare earth shipments from China, which produces 70% of global supplies. US Treasury Secretary Scott Besant and Commerce Secretary Howard Lutnick have been leading the American delegation with Lutnick calling the

talks after the first day fruitful, a sentiment echoed by President Trump. We are doing well with China. China's not easy. I think we're doing very well. They're over there now. I'm only getting good reports.

So that was President Trump. Although optimistic about the talks, President Trump gave no clear answer on lifting export restrictions, saying we'll see when he was asked. Europe's stock exchanges are fighting fiercely to win the few IPOs left looming across the continent. Data compiled by Bloomberg shows Europe has made up just 8% of global issuance so far this year. That's against the yearly average of 16% or more for the last decade. James Woolcock has more.

You may not have heard of Visma or Verishore, but the stock exchanges in Stockholm, London, Zurich and Amsterdam have. One's a software company and the other makes alarms. But both are expected to list at valuations potentially worth more than 20 billion euros. Europe's capital markets are trying their best to charm these potential public companies after being starved of new listings.

And for the exchanges who miss out, alarm bells will be ringing. In London, James Wilcock, Bloomberg Radio. Now, the UK government has reversed an unpopular cut that it made to pensioners' winter fuel benefits. Pensioners with an income of under £35,000 per year will now be able to claim extra money to heat their homes during the winter. It is a U-turn that Chancellor Rachel Reeves says she can afford because she has stabilised the UK economy.

We did that with a number of difficult decisions, but because of those decisions, our public finances are now in a better position, which means this year we're able to pay the winter fuel payment to more pensioners, so 9 million will receive it this year.

The Chancellor earlier this year had to make last-minute changes to curb disability benefits to return her fiscal headroom to just under £10 billion. The governing Labour Party has seen an abrupt fall from popularity since taking office last year, with most polls putting the party now second place to Reform UK.

Staying in the UK, the government is to invest £14.2 billion to help build the Sizewell C nuclear plant in Suffolk in eastern England, a project that's already been on the drawing board for more than a decade. Bloomberg's Ewan Potts has more.

When completed, the 3.2 gigawatt Sizewell C nuclear plant will generate enough power for 6 million homes, which the government hopes will usher in a, quote, golden age of abundant clean energy. The total price tag for this clean energy, though, is likely to surpass £40 billion. Today's announcement ahead of tomorrow's spending review brings the government's total commitment to Sizewell C to just shy of £18 billion, meaning there's plenty to do in raising funds from the private sector. In London, I'm Ewan Potts, Bloomberg Radio.

To some corporate news now. Barclays is preparing to axe more than 200 investment bank jobs in a bid to cut costs. The move is part of CEO CS Venkata Krishnan's plan to boost the profitability of the division. Bloomberg understands that managing directors will be the most senior employees affected

by the changes, which are expected to reduce the lender's headcount by around 3%. A Barclays spokesperson said that the cuts are part of regular talent pool reviews to ensure continued investment in priority areas.

Apple has introduced a host of new artificial intelligence features in a bid to match its competition. The announcements made during the firm's Worldwide Developers Conference yesterday include an expanded relationship with chat GPT maker OpenAI. Bloomberg's Ed Ludlow says the news was marred by concerns about the firm's Siri software.

The stock did drop sharply, literally in the opening minutes of the keynote presentation. And a part of that was senior Apple executives basically saying, we have nothing to say about Siri right now, the kind of core of Apple intelligence. And we won't hear more about that later in the year, even though expectations around what Apple would or would not say around AI were pretty low going into this. The concern coming out today was, well, did we hear enough that we understand the roadmap forward when it comes to Apple and AI?

That's Bloomberg Technology correspondent Ed Ludlow speaking there. The new capabilities will help Apple's iOS operating system start to match some of the features being offered by Samsung and Google's Android devices.

And those are a few of our top stories for you this morning. Well, thinking about Apple, the share price fell by 1.2% at the close on Monday after that keynote speech at the Worldwide Developers Conference. In terms of more broadly, though, what we're thinking about is day two of these US-China trade talks. Asian traders seem to be shrugging off any tariff fears, even though the effective tariff rate at the moment for imports into the US is about 7.07%.

But as I say, U.S. officials have been quite optimistic. So if you look at the Asian session, you've got the MSCI Asia-Pacific Index up by six tenths of one percent. The Nikkei is up nine tenths of one percent. The Hang Seng up three tenths of one percent. You get the picture. In terms of stock futures for the U.S., also positive. The S&P 500 up four tenths.

of 1%, so climbing to a three-month high. The dollar strengthening against most FX pairings, so we're up by almost two-tenths of 1% on the Bloomberg Dollar Spot Index. The euro is in retreat, so too is the Japanese yen, and the pound is down a tenth of 1%. Looking at the bond markets then, ahead of the inflation data that we get from the U.S. on Wednesday, 10-year U.S. yields, little changed at 4.48%.

Bitcoin, though, is heading towards another record high. We're hovering around $109,500 just below that level. So those are the markets.

In a moment, we'll bring you the latest on events in Los Angeles, plus where we are in the US-China trade talks, which continue today in London. But in other words, on a story that we've been reading this morning, hungrily, early this morning, and this is the National Restaurant Awards rankings here in the UK. So a list of the 100

best restaurants. And fine dining is the big winner, according to our food editor, Kate Crader, as coming out on top of the list was the restaurant in The Ritz. It's classical dining room. So this is sort of an interesting shift around the

kind of restaurants that are coming out on top of these things. It's back to the classics, it seems. Absolutely. It's that kind of, you know, white glove service. It's the Ritz. It's the swankiest hotel in London. It's not quite the priciest, maybe. They do at least have a menu, a tasting menu for five courses at £199. So I suppose that's not too much of a nosebleed moment. Chef John Williams, though, has...

got this kind of classic fine dining restaurant that has won out. I mean, I hope everyone else will enjoy also the activity that I've been doing this morning, which is trying to count how many of the top 100 I've been to. The full list is in Kate Crader's piece. I think I got to around 10, which I'm pretty happy about. 10? Did you? You've only taken me to one. Exactly.

We were discussing that earlier. We have been to one of them together, that's true. But there is, I mean, plenty of options in it. Also a nod to some restaurants no longer with us, as it were. Lyle's in London came in at 21 and that closed recently in Shoreditch here in London. But we'll put a link to the article in our podcast show notes so you can read the full list for yourself.

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Now, let's get to our top story today. The Trump administration is sending around 700 active duty Marines to respond to protests in Los Angeles. The California governor, Garvin Newsom, has called the decision unlawful and has requested the White House revoke the order. Joining us now is our senior editor, Bill Fairey. Good morning, Bill. There have been some images actually emerging. We think of these Marines as

deploying active duty military within the US. It is highly unusual. How has the president justified this?

Hi. Yeah, thanks for having me. You're right. We have seen some images coming from the L.A. Times of soldiers looking like they're leaving the 29 Palms base and heading to Los Angeles in a big caravan of buses so far. It is, as you mentioned, highly unusual. It's highly unusual for the president to deploy National Guard without a request from the state government.

governor or from a local mayor. That hasn't happened since the 1960s. It's even more unusual to be putting active duty U.S. troops, and there's a lot of legal restrictions about how you do that. The president is using this provision of U.S. law that

allows domestic deployment of troops in the case of invasion by a foreign nation, a rebellion, or the danger of a rebellion. And that's one of the things California officials are immediately putting a question to, saying that there really is no invasion and there's no rebellion.

These are legal protests, they're saying. We did see on Monday that things seem to have, I want to say, calmed down a little bit from the weekend when you saw those Waymo cars getting burned and more people having disputes or fighting back and forth with authorities. So it was a relatively calmer day compared to the weekend. But as you said, these troops look like

They're heading for Los Angeles, and you still have several hundred National Guard forces on the streets now.

Yeah, indeed, because this has been part of the debate is that while the Trump administration claims the situation is bad enough to warrant having Marines in there, what is happening on the ground appears to be much more limited and certainly scattered, being the word that our colleagues in Los Angeles have used to describe the protests that have happened in the past 24 hours. Talk us through what the Californian officials, Governor Gavin Newsom and the mayor of L.A., Karen Bass, have been saying about this.

Well, they're saying that it's the federal response that has actually made the situation worse. It's helped provoke some of the people who are out on the streets at this point. And even local officials, the L.A. sheriff, saying that, you know, things weren't looking great, but officials, local authorities had it under control. And, you know, they've sued, the California officials have now sued the federal government over its response.

It's not clear how long that will take to play out in the court, but...

But as we've seen, you know, I don't think the White House and the Trump administration has really been deterred by the threat of lawsuits so far. So I think, you know, California officials are hoping they can get this de-escalated and prevent any more violence before these Marines arrive, before there's any kind of more of a deployment on the streets of Los Angeles. And yet again, it seems to be a major decision that may come down to a judge in terms of the kind of legal action. Yeah.

Yeah, absolutely. I mean, it's definitely the style of the Trump administration to sort of push up against legal boundaries and then fight to see if what they've done can be accepted by the courts. We've seen that throughout this battle over immigration. We've seen it when it comes to foreign students in the U.S. studying in American colleges. We've seen it in the fight with the universities like Harvard and Columbia. It is, you know, this is a maximalist

presidency and the White House does focus on seeing where exactly the boundaries to their authorities and powers are. Bill, another story that you've been monitoring for us this morning has been the U.S.-China trade talks happening here in London heading into a second day today. Are there any signs of progress?

Well, the fact that I think there's a second day of talks is probably some sign of progress. You had, I think, six hours of discussions yesterday. It went till about 8 p.m. London time there, restarting today. President Trump was out earlier saying he thinks the U.S. is doing well with China, but he said China's not easy. It's the second time in the last couple weeks he's talked about the difficulties of negotiating with China. But

Talk's expected to continue today. There is some reporting from our side that China may ease those restrictions on rare earth shipments. And in turn, the Trump administration would look at easing some of the measures they've put in most recently that targeted chip design software sales to China, as well as the sale of jet engine parts that China has

So both sides seeming to potentially give up something here to get trade talks back on a better track. This is Bloomberg Daybreak Europe, your morning brief on the stories making news from London to Wall Street and beyond. Look for us on your podcast feed every morning on Apple, Spotify and anywhere else you get your podcasts. You can also listen live each morning on London DAB Radio, the Bloomberg Business app and Bloomberg.com.

Our flagship New York station is also available on your Amazon Alexa devices. Just say Alexa, play Bloomberg 1130. I'm Caroline Hepke. And I'm Stephen Carroll. Join us again tomorrow morning for all the news you need to start your day, right here on Bloomberg Daybreak Europe.

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