China Confirms Trade Framework; Stocks on Brink of Record Highs
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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.

Care in the Rise in Stocks comes as the U.S. moves closer to trade deals with major trading partners. In fact, this morning, China has confirmed it signed a trade framework with the U.S. in recent days. That echoes comments from Commerce Secretary Howard Lutnick heard on Bloomberg's balance of power. That deal was signed and sealed recently.

Two days ago, their prime minister and their parliament have to approve it. And the president likes to close these deals himself. I mean, he's the dealmaker. He loves to close it. And then what we're going to do is we're going to lay out a structure of all the different kinds of tariff arrangements with different countries and get that ready for July 9th.

Commerce Secretary Howard Ludnick says the agreement codifies terms laid out earlier this month in talks between the U.S. and China in Geneva. He says the U.S. has imminent plans to reach agreements with a set of 10 other major trading partners. You can get the full conversation with the Commerce Secretary.

on the Bloomberg podcast page on YouTube.

Sources say a team of Indian trade officials is slated to hold meetings with officials in Washington this week to resolve differences and find a common ground. And Karen, the Treasury Department's announced a deal with G7 countries to remove a controversial revenge tax from President Trump's tax and spending bill. Section 899 would have targeted countries whose tax policies were deemed discriminatory by the U.S., applying higher rates to those jurisdictions.

Under the agreement, American firms will be exempted from OECD-brokered 15% global minimum tax rates for big companies. We get more from Bloomberg's Jill Desis. The big news is that those U.S. companies are going to be excluded from that pillar two, that's the global minimum tax.

that was implemented in 2024. I do believe at this point you've got obviously the U.S. saying that they've reached this deal with G7 nations. I think this still has to be formally approved by the OECD at some point within the next week or so. Bloomberg's Jill Desis says Section 899 in the big tax cut bill had sparked fears on Wall Street and beyond that it would make it much more expensive for foreign individuals and companies to invest in the U.S.

Nathan, Donald Trump is once again criticizing Fed Chair Jay Powell for not cutting interest rates. The president spoke during a tax bill event at the White House. And if we had a person over at the Fed that would lower interest rates a little bit, that would be helpful too.

It's hard to believe. This is on top of, you know, we have to fight this guy. He's not doing the job. Earlier this week in congressional testimony, Jay Powell suggested the Fed will remain on hold for now because of the higher inflation outlook. Let's turn to the latest developments from the Middle East now, Karen. Iran is denying that it'll hold nuclear talks with the U.S. next week. President Trump said there would be negotiations when he left this week's NATO summit.

But Iran's foreign minister, Abbas Araqchi, told state television that speculation about new discussions should not be taken seriously. Meantime, the Senate received its first closed-door briefing on last weekend's U.S. airstrikes on Iran's underground nuclear facilities. Republican Lindsey Graham says he is satisfied with how the White House has described it. Obliterated is a good word for me to use.

I can tell people in South Carolina nobody is going to work in these three sites anytime soon. They're not going to get into them anytime soon. Their operational capability was obliterated. But Democrat Adam Schiff of California says he still has questions. We need a lot more information to make any kind of determination of whether the Iranian program was set back by a short period, a middle period, or a longer period.

For his part, Iran's foreign minister says the damage to the nuclear facilities is considerable and serious. He says Iran does not currently intend to allow UN inspectors in to do their own assessment.

Nathan, let's get to the latest now in the New York City mayor's race. Eric Adams has officially kicked off his reelection campaign as an independent. I'm so proud to be here to say to the people of the city of New York, I am seeking re-election to be your mayor of the city of New York.

Mayor Adams dropped out of the Democratic primary after he faced federal corruption charges that were later dismissed. And after Democratic Socialist Zoran Mamdani's stunning win in the first round of their primary, sources tell Bloomberg News the man who came in second, former Governor Andrew Kavanaugh,

Cuomo has no plans to drop out. That means Cuomo's name will also appear on the November ballot as an independent. And now some of Wall Street's elites are looking for options. Billionaire Bill Ackman posted on X looking for suggestions for the best centrist to take on Mondani. The former Democrat turned Trump supporter says...

If someone's ready to raise their hand, he'll take care of the fundraising.

In its latest earnings report, the sportswear company said its year-long sales decline is starting to ease. On the economic front, Nathan, inflation is going to be in focus this morning. Investors will get a key report on the personal consumption expenditures price index, the Fed's preferred gauge of underlying inflation. And we get a preview with Bloomberg's Michael McKee.

The inflation narrative gets a little more complicated this morning. Headline and core PCE changed little in May, according to economists surveyed by Bloomberg. On an annual basis, however, the inflation figures are forecast to rise. That would make a July rate cut suggested by a couple of Federal Reserve officials more difficult to justify.

Because economists are pretty good at calculating the likely monthly changes, the real focus will be on individual sectors as policymakers look for tariff effects. They will also be paying attention to the income and spending numbers, particularly spending for any signs consumers might be pulling back. Michael McKee, Bloomberg Radio.

Time now for a 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. President Trump's tax bill has hit a $250 billion health care snag in the Senate. A Republican plan to cut the money in Medicaid and other health care spending hit a procedural roadblock due to a ruling by the Senate parliamentarian.

The Senate's legislative rules keeper judged a series of key health care provisions in the legislation ineligible for a special procedure Republicans are using to bypass the Senate's normal process so they can avoid making concessions to Democrats. President Trump. The one big, beautiful bill to secure our borders, to recharge our economy and bring back the American dream. That's what's happening to us.

The president hosted senators at the White House yesterday. The measure narrowly passed the House. Speaker Mike Johnson was asked if he thinks the bill will still pass by President Trump's July 4th deadline. Well, it doesn't make it easier, but you know me, hope springs eternal and we're going to work around the clock and try to meet that deadline. Speaker Johnson urged the Senate not to make drastic changes to the House-passed bill.

The defense will deliver closing arguments today in the Sean Diddy Combs sex trafficking and racketeering trial. Prosecutors wrapped up their closing arguments yesterday. The prosecution believes that the rap mogul ran his business like a criminal enterprise, relying on loyal lieutenants. Combs has pleaded not guilty to all charges.

The Supreme Court is meeting today to decide the final six cases of its term, including President Trump's bid to enforce his executive order denying birthright citizenship to U.S.-born children of parents who are in the country illegally. The birthright citizenship order has been blocked nationwide by three lower courts. The Trump administration made an emergency appeal to the Supreme Court.

Global news 24 hours a day and whenever you want it. With Bloomberg News Now, I'm Michael Barr and this is Bloomberg. Karen. All right, Michael Barr, thank you. Thrivent can help you plan your finances for the people, causes and community you love. What makes Thrivent different? Financial services and generosity programs are combined to help you build a financial roadmap for the future.

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Time now for the Bloomberg Sports Update. Here's John Stashower. John, good morning. Good morning, Karen. All scenes in the Mets have not had the starting rotation they hoped to have. Sean Minaya has yet to pitch. Kodai Senga just went down with a hamstring injury. And two days later, Tyler McGill hurt his elbow. And now two weeks after that, what appears to be a serious leg injury to Griffin Canning has been a very pleasant surprise after going down.

Horrible, you know.

It sucks. You hate to see it, especially the way he went down right away. And once you get there and you're asking what's going on,

then just how everything developed after that. You know, I feel sorry for the guy, especially how big he's been for us and the way he's been throwing the ball the whole year. The Mets are back in first place because the Phillies got swept in Houston. The Astros won 2-1 after earlier wins, 1-0 and 2-0. The Rays blanked the A's 8-0. That's the A's...

50th loss of the season. They start a series with the Yankees tonight in the Bronx. The Mets this weekend play in Pittsburgh, and the Pirates have also lost 50 games. Looks like labor peace through 2030 in the NHL, where they've had three lockouts the last two decades. The current deal ends after next season. Two sides said to be close to agreeing to a four-year extension that would make for an 84-game regular season, two games longer than now.

Justin Tucker is the most accurate kicker in NFL history, but the longtime Baltimore Raven was recently cut. He missed 10 kicks last season, and he was accused by 16 massage therapists of sexual misconduct. The NFL has given Tucker a 10-game suspension, so any team that signs him doesn't get him until November. John Stasch, Bloomberg Sports, Karen Nathan.

Coast to coast on Bloomberg Radio. Nationwide on Sirius XM. And around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak.

Good morning. I'm Nathan Hager turning now to our exclusive conversation with Commerce Secretary Howard Letnick on Bloomberg's balance of power with Joe Matthew and Kayleigh Lines. He told them the U.S. and China had signed a trade framework deal two days ago and that President Trump suggested the U.S. is close to a deal with India. He also talked about the White House doing more deals ahead of the July 9th so-called reciprocal tariff deadline. Let's listen to part of that discussion. Let

The tariff program is in the power of the presidency. Right. Congress has given the president the power to work on these tariffs and to set these tariffs. So that's presidential power. So what's really interesting is this big, beautiful bill does not count. The eighty eight billion dollars of tariff revenue we've received and now we're earning up to

up to $30 billion a month in tariff revenue so far. And as you get to July 9th, that number is only going to go higher. We're going to announce a whole bunch of deals over the next week or so. And then we're just going to send letters out to everybody who's responded to us, put them in the right category, and off we'll go. So there's going to be tens of billions per month, and those not included in the bill. So when they talk about the deficit, when they're talking about the bill, they're only talking about

The things that that bill touches, the extra 400 or 500 billion dollars a year that the tariffs bring in, the new tariffs bring in, that just doesn't count for the bill. But of course, of course, that cash counts for America. Mr. Secretary, you just said that you're going to announce a whole bunch of deals over the course of the next week with what countries? And does that include the China deal the president suggested was signed yesterday? What is that?

So the China deal, we inked the deal. You remember we had a trip to Geneva, and then that was being slow played. We got back together in London, and that deal was signed and sealed two days ago. President just said it. And then he also suggested that we are, of course,

at the very close finish line with India. Of course, the way these deals happen is their prime minister and their parliament have to approve it. And the president likes to close these deals himself. I mean, he's the dealmaker. He loves to close it. I think we have deal after deal after deal. The president's going to make his calls. He's going to decide exactly the finishing touches on them. And then what we're going to do is we're going to lay out a structure of all the different kinds of tariff

arrangements with different countries, right? There are countries with huge deficits. There are countries that are balanced. We're going to set that all up and get that ready for July 9th. So it sounds to me, Secretary, and correct me if I'm wrong as I listen to you, that we either get 88 deals announced in the next two weeks...

or there's going to be action one way or the other by this administration that July 9th will be conclusive. If there's no deal, here's the new reciprocal tariff. Is that right? Of course. So what we're going to do is we'll announce some deals, but basically the deals we're going to announce are sort of the head of the class, the structural spot in the line, and then all the other countries will fit

behind those categories. Right. So we're going to do top 10 deals put them in the right category and then these other countries will fit behind. So you'll have South American deals and you'll have African deals you'll have it all structured and set up. And that's the model how you do leadership. And we will put these people in their proper buckets on July 9th. So those who have deals will have deals with everybody else who's been negotiating with us. They'll get a response from us and then they'll go into that package.

And July 9th will go forward. And as the president said, if people want to come back and negotiate further, they're entitled to. But that tariff rate will be set and off we'll go. Where does Europe fall in that sequence, Mr. Secretary? There was reporting that the European Commission has received the latest offer from the U.S. Are you expecting that offer to potentially be accepted by next week?

I think that Europe has done an excellent job. They are working hard. Remember, it was a very, very slow process, if you remember. And the president put out a truth, kind of motivated him with that truth, as Donald Trump is capable of doing. They came to the table then. They started negotiating. They really put it on the table. And I'm actually, I've become optimistic. I think

If you had asked me three weeks ago before that truth, I would have said no way. But since that truth by the president, I really feel I'm optimistic. I think we could get a deal done now. Europe will be right at the end. But you got to remember, they're our largest trading partners. So the fact that they come at the very end makes some sense. It's deep. It's complex. But I'm kind of optimistic now. I wasn't optimistic three weeks ago. But now, since the president got involved, I'm pretty optimistic, actually.

This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify, or anywhere else you listen. You can also listen live each morning starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121.

Plus, listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it, in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.

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Thank you.

Whatever challenge comes next, let Microsoft help you keep pushing forward. For more details, visit Microsoft.com slash challengers. This is what the market used to sound like.

Pretty complex. But today, with iShares by BlackRock, investing is easier. With over 450 ETFs, iShares gives you easy access to countless market opportunities. iShares by BlackRock. The market is yours. Visit www.iShares.com to view your perspectives, which includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. Risk includes principal loss. Prepared by BlackRock Investments LLC and member FINRA. This is an iHeart Podcast.