Senate Republicans Race to Finish Tax Cut Bill; Stocks at All-Time Highs
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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 debate continues in the Senate on President Donald Trump's massive tax and spending cut bill. This morning, senators kick off a marathon voting session on dozens of amendments to the legislation. The process is likely to take all day, but Senate Majority Leader John Thune is hopeful it will get done in the end.

Republicans are united in our commitment to what we're doing in this bill, securing our border, strengthening our national defense, growing our economy, unleashing American energy, cutting waste, fraud, and abuse, and preventing tax hikes on hardworking Americans.

Majority Leader Thune is going to be working behind the scenes to ease Republicans' competing concerns. North Carolina's Tom Tillis says the Medicaid cuts in the bill go too far. What do I tell 663,000 people in two years or three years?

when President Trump breaks his promise by pushing them off of Medicaid because the funding's not there. Republican Tom Tillis announced he will not seek re-election next year after President Trump threatened to primary him for voting against the bill. Other Republicans are pushing for even faster Medicaid cuts to shrink the bill's price tag. And Elon

Musk is weighing in as well. The Tesla CEO and former Trump advisor says cuts to electric vehicle and clean energy tax credits would be incredibly destructive to the country. Republicans are racing to get the bill to President Trump's desk by the end of this week.

Nathan, we have several developments on the trade front this morning. The U.K.-U.S. trade deal is officially in effect. It marks the only trade agreement the White House has implemented with nine days to go on its self-imposed tariff pause. Let's go to London and get the latest with Bloomberg's Ewan Potts. Ewan, good morning.

Karen and Nathan, as global leaders scramble to agree tariff deals with the US, the UK's is now in place. British car manufacturers can now export to the US with a 10% tariff down from the 25% rate imposed on other countries. And aerospace companies like Rolls-Royce now face zero tariffs on goods including engines and aircraft parts.

However, there's no sign of progress toward reducing levies on the UK's beleaguered steel industry. Those remain at 25%. In London, I'm Ewan Potts, Bloomberg Radio. Thanks, Ewan. Trade talks between the US and Japan continue, and President Trump's floating the idea of keeping 25% tariffs on Japanese cars. That duty has emerged as one of the key sticking points in the negotiations.

Washington's focusing on its large deficit in the auto sector, while Tokyo is trying to protect a key pillar of its economy.

Nathan, Canada is making a move to try to jumpstart trade talks with the U.S. It is withdrawing its digital services tax on technology companies such as MetaPlatforms and Alphabet. The tax, which was passed into law last year, would have charged 3% of digital services revenue, above $14 million in a calendar year. The move infuriated President Trump, who on Friday said he was ending all trade discussions with Canada.

Well, Karen, President Trump says he's identified a buyer for the U.S. operations of TikTok, but he's not naming the winning bidder. The news comes after U.S. and Chinese officials confirmed they had agreed on a trade framework last week. Speaking in a pre-taped interview with Fox News, the president expanded on the TikTok terms. We have a buyer for TikTok, by the way. I think I'll need

Probably China approval. I think presidency will probably do it. It was a group of very wealthy people. It was President Trump speaking on Fox. Now, a January deadline for TikTok's Chinese parent ByteDance to find a local buyer was pushed back twice by the president. This month, he extended that deadline again a further 90 days from June 19th.

Nathan, President Trump also weighed in on the Democratic nominee for New York City Mayor Zoran Mamdani in that Fox News interview. He's a communist and he's a pure communist. I think he admits it.

And the president raised the possibility of withholding federal funds for the city if Mondani is elected in November. The 33-year-old has described himself as a democratic socialist. And in an interview with NBC's Meet the Press, he was asked if he thinks billionaires should exist. I don't think that we should have billionaires because, frankly, it is so much money in a moment of such inequality.

And Zoran Mondani says business leaders have told him the high cost of living in the city is keeping them from attracting and retaining talent. He also says there's no room for anti-Semitism in New York. But he declined to condemn the phrase globalize the intifada, which is offensive to many Jewish people. You can hear Meet the Press every Sunday on Bloomberg Radio. Well, back to the markets now. Karen, traders begin this week with stocks at all.

all-time highs. On Friday, the S&P 500 joined the Nasdaq 100, closing at records. Stocks have made a stunning recovery from April and the tariff turmoil that started the quarter, adding almost $10 trillion in value after teetering on the cusp of a bear market just two months ago. Troy Gajewski is Chief Market Strategist at FS Investments.

Earnings estimates have come down rightfully, but I think at the end of the day, the technical strength of markets continues to be underestimated, as well as the continued strength of the consumer. That's FS Investments Chief Market Strategist Troy Gajewski. U.S. equities took in $164 billion of inflow so far this year. Bank of America says that's on course for the third largest annual allocation in history.

Nathan Goldman Sachs says U.S. profit margins face a big test in the upcoming reporting season as investors assess the damage from President Trump's trade war. Goldman says the second quarter earnings will capture the immediate effects of tariffs that have increased by about 10 percentage points since the start of the year. Analysts expect a sharp slowdown in U.S. profit growth for the second quarter, with earnings per share expected to rise only 2.6 percent for the April-June period.

Well, legendary short seller Jim Chanos is sounding a warning, Karen. While enthusiasm for all things artificial intelligence has helped propel stocks to all-time highs, Chanos says the AI ecosystem is getting close to a potential pullback. He spoke at an Odd Lots podcast recording last week.

There is a ecosystem around the AI boom that is considerable, as there was for TMT back in 99 and 2000. But it is a riskier revenue stream because if people pull back, they can pull back CapEx

very easily. Projects can get put on hold for six months or nine months, and that immediately shows up in disappointing revenues and earnings forecasts if it happens.

Jim Chanos likens the dominance of AI companies to networking giants like Cisco and Lucent that characterized the market in the 1990s and saw their stock soar as companies upgraded their systems to handle the new internet age. Nathan, shares of Juniper surging more than 8% this morning. The Justice Department has settled its lawsuit challenging Hewlett Packard Enterprises' $13 billion takeover of Juniper Networks. The agreement will require the combined company to sell HPE's

Instant-on wireless networking business, an auction off a license to Juniper's competing mist business. Shares of Hewlett Packard, they are up more than 4%. The settlement comes less than two weeks before a trial was set to start.

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 John Tucker. John, good morning. And good morning, Karen. A fire on Canfield Mountain in Coeur d'Alene, Idaho, appears to have been intentionally set to set up an ambush for firefighters. The local county sheriff, Bob Norris, says two of the responding firefighters were killed. One more is hurt. We believe, based on the information that we've been able to collect...

that we believe that there was only one shooter. Well, the suspect was later found dead of a gunshot wound. Hours after the end of the Pride Parade in New York, two people were injured in a shooting in Greenwich Village, just blocks from the Stonewall Inn. Police say shots were fired at 3 Sheridan Square just after 10 last night. One person was shot in the head and was taken to a hospital in critical condition. Another person was injured in the leg. No arrests have been made, but a gun was recovered at the scene.

President Trump says he's not offering Iran anything and that he hasn't been talking to them since the U.S. struck Iran's nuclear facilities. The president making the comments in a post on Truth Social. Earlier in comments on Fox News on Sunday, the president suggested he might back eventual sanctions relief for Iran if, in his words, they can be peaceful.

In New York, jury deliberations expected to start today at former rap music mogul Sean P. Diddy Combs' sex trafficking trial. This follows closing arguments in the case on Friday. At 23andMe has secured bankruptcy court approval to sell its genetic data trove

to its co-founder and a related non-profit for $305 million. It includes the genetic data of more than 13 million customers. The sale comes despite staunch pushback from a slew of states that raise privacy concerns. Global News, 24 hours a day, whenever you want it. With Bloomberg News Now, I'm John Tucker, and this is Bloomberg. Karen and Nathan.

All right, John Tucker, thank you. It's summer. Time to enjoy long days, lazy nights, and great food because Uber Eats has deals all summer long. So when hunger strikes, don't sweat it. Delicious deals are just a tap away on Uber Eats. Enjoy all your favorite grocery items delivered straight to you. Get ice cream, soda, and snacks from your favorite stores like Wegmans and CVS and make the most of every moment.

Now that sounds like a good summer. Order now on Uber Eats. Terms apply. Product availability varies by region. See app for details. For enterprise organizations, managing all your food needs is a tall order. But with Easy Cater, you get a single workplace food vendor with the tools and resources to make it easy. Giving teams across your organization an easy way to order from a huge variety of restaurants, all on one platform. All while consolidating your corporate food spend so you can control costs.

streamlining billing and payment, and simplifying reporting. EasyCater, your business tool for food. To learn more, visit easycater.com slash podcast. Hey, it's Ryan Reynolds here for Mint Mobile. Now, I was looking for fun ways to tell you that Mint's offer of unlimited premium wireless for $15 a month is back. So I thought it would be fun if we made $15 bills. But it turns out,

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Time now for the Bloomberg Sports Update, brought to you by Fleshing Bank. Here's John Stashower. John, good morning. Good morning, Karen. No one had a worse weekend than the Mets. The worst three-game series in team history. Even the 120-loss 1962 Mets never lost three games by 26 runs. The Pirates won 9-1 and then 9-2. Then the Mets held a players-only team meeting.

and lost 12 to 1 so outscored 30 to 4 carlos mendoza's team has lost 13 of the last 16. we are all frustrated obviously we're not gonna lie uh we're better than that and they know that you know it's a tough stretch

But we've got to be better. It starts with me. We believe in those guys. Off day tomorrow, and then we've got another good team coming into town, the Brewers. The Brewers might be good. The Pirates are not. That's what made this series so shocking. Pittsburgh has lost 50 games since its last place.

Mets are in second game at half-time. The Phillies, the Yankees lead on Tampa Bay, and the AL East is one and a half. Yanks at the stadium beat the A's 12-5. Aaron Judge with his 29th and 30th home runs of the season. Jazz Chisholm homered, also had a three-run triple. Marcus Stroman beat the one-time Yankee ace, Luis Severino. Stroman's first game since early April.

Red Sox lost to Toronto 5-3. The Nationals beat the Angels 7-4. NBA free agency begins today, but the biggest names are staying put. That includes LeBron James in his 23rd season. LeBron will make $52.6 million for the Lakers. James Harden also staying in L.A. with the Clippers. Two years, $81 million. And the ex-Nick Julius Randle a year ago traded to Minnesota.

Timberwolves just gave Randall a new three-year $100 million deal. Wimbledon begins today. Early this morning, matches for Americans Francis Tiafoe and Madison Keys, as well as the women's soft seat, Irina Sabalenka. Patrick Harrington won the senior open golf at Colorado Springs. One of Thoroughbred Racing's greatest trainers has died. Dwayne Lucas was 89. His horses won 15 Triple Crown races.

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, and the race is on in the Senate to get President Donald Trump's big tax and spending cut bill done by the end of the week. But as a marathon round of amendment votes begins today, at least one Republican, North Carolina's Tom Tillis, is urging his colleagues to slow things down. We've got a view on an artificial technology

deadline on July 4th. That means nothing but another date and time. It was North Carolina Senator Tom Tillis speaking on the Senate floor this morning. We're joined by Bloomberg News Senior Editor Bill Ferrys. Bill, we've seen so much drama surrounding this bill centered even on Senator Tillis saying he's not going to seek re-election after opposing the legislation. How much more drama can we expect today? Good morning. Good

Good morning. Yeah, it's going to be a very interesting day. The Senate coming back in after a late night. They should be in around 9 a.m. to start this, you know, so-called voterama where they start taking up the amendments to this legislation. And I think Republican leader John Thune behind the scenes will be doing continue to be doing a lot of arm twisting to get this through.

Now that, that voting on amendments, I mean, it's hard to know how long that could take. It's in the past gone anywhere from 12 to 15 hours. So in terms of a final vote on the legislation, we could be talking about very late Monday night, sometime early Tuesday morning there on the East coast. But it's,

you know, that would be, that's the deadline they have to really meet if they want to get it back to the House and have this thing on the president's desk by July 4th. You mentioned Tom Tillis. He was already under a lot of pressure. Rand Paul looks like he's not supportive of the legislation. So that's two of the three votes Republicans can afford to lose and still pass this. So it's going to be very much down to the wire. Who are you watching in terms of...

Republicans who could be wavering on this legislation.

Well, sure. I mean, two at the top of the list, it's going to be Susan Collins of Maine, Lisa Murkowski of Alaska. They have both had a lot of concerns about some of the cuts to Medicaid benefits. They've expressed concern that too many people could lose health coverage if this bill passes. So the Republicans cannot afford to lose both of them. They could lose one and still have J.D. Vance as the tiebreaker.

But if they lose both, the bill dies there. And I think the Republican leadership will have to figure out how to pick up the pieces. And in the meantime, it seems like the price tag on this legislation keeps rising when you look at what's coming out of the Congressional Budget Office. And you have to think a lot of Republicans, no matter which side they stand on, the spending cuts have to be thinking about the impact on the midterms next year.

Absolutely. The CBO scoring on this bill in the Senate version said that I think it cost $500 billion more over the coming decade than the House version. That is going to be very difficult for particularly Republican members in the House to stomach

They already, many of them already thought the bill was too expensive. Seeing it increase by that much over the decade is going to be, it's going to be hard for them to support that. So that's some of the arm twisting and tweaks I think we might see in the amendments that come up in the coming hours once the Senate's back in session.

Only about 30 seconds left. We got Medicaid cuts to think about, as well as the tax cut promises that President Trump promised the middle class. What's the potential political impact of this bill? Well, I think if you do get, you know, if you do pass something that reduces taxes on tips, I think that's going to be seen as a big win by Trump and the Republicans. I think we have to see if that SALT tax works.

deduction is something that Republicans in the Northeast are happy with when this goes back to the House.

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.

It's summer. Time to enjoy long days, lazy nights, and great food. Because Uber Eats has deals all summer long. So, when hunger strikes, don't sweat it. Delicious deals are just a tap away on Uber Eats. Enjoy all your favorite grocery items delivered straight to you. Get ice cream, soda, and snacks from your favorite stores like Wegmans and CVS and make the most of every moment.

Now that sounds like a good summer. Order now on Uber Eats. Terms apply. Product availability varies by region. See app for details. For enterprise organizations, managing all your food needs is a tall order. But with Easy Cater, you get a single workplace food vendor with the tools and resources to make it easy. Giving teams across your organization an easy way to order from a huge variety of restaurants, all on one platform. All while consolidating your corporate food spend so you can control costs.

streamlining billing and payment and simplifying reporting. Easy Cater, your business tool for food. To learn more, visit easycater.com slash podcast. I'm Shinali Basick, and I have a new show. It's called Bullish, and it's about the future of Wall Street. Join me and Ken Griffin, Boaz Weinstein, Melody Hobson, Jane Fraser, and others as I explore Wall Street South, the rise of influencers.

And I learned how to count cards. Another blackjack. Oh my God, this is amazing TV. Watch Bullish Tuesdays on Bloomberg.com or tune in live at 6 p.m. Eastern on Bloomberg TV and 8 p.m. Eastern on Bloomberg Originals. This is an iHeart Podcast.