Tax Bill Hits Republican Resistance; Trump's Tariff Threats Continue
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Karen, we begin in Washington where President Trump's massive tax and spending cut bill is now back before the House. The legislation barely passed the Senate with a tie-breaking vote from Vice President J.D. Vance. But now it's running into resistance from Republicans who don't like some of the changes to the bill. House Speaker Mike Johnson says he's not surprised.

We knew we would come to this moment. We knew the Senate would amend the House product. I encouraged them to amend it as lightly as possible. They went a little further than many of us would have preferred. House Speaker Mike Johnson says moderates in his caucus are worried about the scale of Medicaid cuts, while ultra-conservatives are vowing to oppose the bill over its deficit impact.

President Trump is calling resistant Republicans grandstanders. GOP leaders hope to vote on the bill today to get it to the president's desk by the end of the week. Meanwhile, Nathan, there's just one week left until President Trump's July 9th deadline to raise tariff rates on dozens of countries. The president says he's not considering any delays and he's renewing his threat to cut off talks and impose higher rates on several nations, including Japan. President Trump is sounding more optimistic about reaching a deal with India. He's

He says it's possible to lower the country's tariffs if India allows U.S. companies to compete in its market. Let's turn to new developments in the Middle East, Karen. President Trump says Israel has agreed to terms for a 60-day ceasefire in Gaza. He's warning Hamas to accept the deal before conditions get worse. But Bloomberg Jerusalem reporter Dan Williams says there is no sign the militants' group position has changed.

It would appear its conditions remain firm. Those conditions are for a full Israeli withdrawal or actually more precisely an Israeli declaration that this war is over with a full withdrawal of troops and tanks from the Gaza Strip. Effectively, Hamas wants a guarantee that once it delivers all the hostages it still holds, some 50 people, then it will be effectively provided immunity from an Israeli offensive designed from the outset.

to topple it from power and to disarm it. Bloomberg's Dan Williams says Israeli Prime Minister Benjamin Netanyahu plans to visit the White House next week. As for the war in Ukraine, Nathan, the Trump administration has halted weapons transfers to Kiev as Russia's attacks intensify. The White House confirmed a report from Politico which said the Pentagon's Undersecretary for Policy spearheaded the move on concerns U.S. stockpiles had run too low. The move

Here comes days after Russia launched its heaviest attack yet over the weekend, a record 537 drones and missiles fired across Ukraine. Following the weapons review, the White House issued a statement saying the strength of U.S. armed forces remains unquestioned. Just ask Iran. Let's turn to markets now, Karen. Futures are higher just a bit ahead of tomorrow's key jobs report. Fed Chair Jay Powell says the central bank would likely have already cut interest rates this year if not for President Trump's use of tariffs.

Powell spoke at the European Central Bank Forum in Central Portugal. In effect, we went on hold when we saw the size of the tariffs and where essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs. In remarks heard live here on Bloomberg, Fed Chair Jay Powell said he's focused on maintaining the Fed's dual mandate despite political pressure to move on rates. The Fed's next rate decision is July 30th.

Nathan, we're keeping an eye on bank shares this morning after Wall Street's biggest lenders boosted their dividends. And we bring in Bloomberg's John Tucker with more. John, good morning. Good morning, Karen. JPMorgan Chase, Goldman Sachs, and Bank of America among the big Wall Street lenders that are raising their quarterly payouts. Now, this payday for investors also includes a $50 billion share buyback from JPMorgan Chase. The move comes after the banks passed the annual Fed stress test.

product of the 2008 financial crisis. The Fed's exam sets the tone for how aggressive banks are in returning capital to shareholders. All 22 banks comfortably passed after determining they could withstand more than $550 billion in losses if some financial disaster took place.

The Fed said the results showed that the large banks are well positioned to weather a severe recession. It's important to note the test did get easier this time around. Among the shares trading this morning, pre-market JPMorgan Chase up one half of a percent. I'm John Tucker, Bloomberg Radio. All right, John, thanks for also watching. Shares of Centene this morning, they are plunging nearly 26%. The health insurer polled its 2025 guidance.

Centene focuses mostly on Medicaid and the Affordable Care Act insurance marketplaces. It says an early analysis of data showed a significant revenue hit. Nathan, Tesla delivers its latest quarterly sales report later this morning. Analysts expect a 12% drop from last year. The stock is off to a rough start for the third quarter with Elon Musk and President Trump renewing their feud over the tax and spending cut bill. Tesla shares slumped more than 5% yesterday. They're higher this morning, up 1%.

And Karen, Paramount Global's reached a settlement with the president over his lawsuit alleging election interference by CBS News. The network showed two versions of a 60 Minutes interview with then Vice President Kamala Harris back in October. Paramount agreed to pay $16 million, including plaintiff's fees, with the rest going to a future presidential library. President Trump was seeking $20 billion.

No money will go to him directly, but this deal is seen as critical for Paramount to gain federal approval for its pending merger with Skydance Media.

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. A federal jury deliberating the fate of movie and I'm sorry, and music mogul Sean Diddy Combs in New York will return for a third day of deliberations today. The jury reached verdicts Tuesday on all but one of the five counts the hip hop mogul faces the top charge of racketeering conspiracy.

The judge ordered the jury to continue deliberating. Robert Mintz is a partner at McCarter and English and spoke with Bloomberg Law host June Grasso.

It would suggest that perhaps they have found unanimity on the other charges in the sense that they have returned a guilty verdict. That would be probably what most prosecutors would read into that decision, but we won't know until the verdict is actually read in open court. Robert Mintz with McCarter in English speaking with Bloomberg Law host June Grasso. The jury's partial verdict remains under wraps for now.

Brian Koberger has agreed to plead guilty to murdering four University of Idaho students as part of a deal with the prosecutors to avoid the death penalty. A change of plea hearing is set for today. The 30-year-old Koberger is accused in the stabbing deaths at a rental home near campus in Moscow, Idaho in November of 2022. The plea has deeply divided the victim's families.

Steve Consalves, the father of one of the victims, Kaylee Consalves, says he is strongly against it. Shut up and get on board and deal with it. That's really what they told us. They failed me. They failed my whole family. It's our children. How can you...

How can you say it's just when you haven't even talked to us to see what justice looks like? The other victims included Ethan Chapin, Zana Kornudl, and Madison Moglen. The Trump administration is holding back close to $7 billion in support of students learning English, summer programs, and after-school programs.

The Education Department has notified state education agencies that the funds would not be available. Little explanation has been given as to why state officials are expected to challenge the moves as illegal.

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. Every business has an ambition. PayPal Open is the platform designed to help you grow into yours with business loans so you can expand and access to hundreds of millions of PayPal customers worldwide. And your customers can pay all the ways they want with PayPal, Venmo, Pay Later and all major cards so you can focus on scaling up.

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Time now for the Bloomberg Sports Update brought to you by Flushing Bank. Here's John Stashower. John, good morning. Good morning, Karen. Yankees played a Canada Day matinee in Toronto. They led 2-0 early, then trailed 4-2, tied the game, top of the seventh inning, but in the bottom, Jays retook the lead and were hardly done there. George Springer is up. There is energy in this ballpark right now. And up center field. It's going in.

What a scene here at the Rogers Center. George Springer with a grand slam to blow it open. On TSN, seven RBIs for Springer. The Jays won by seven, 12-5. They've won five of the last six, 21 of 31. The Yanks, over the last two and a half weeks, just 6-11. And Toronto, only one game behind. Tampa Bay lost the race trail by a game and a half. Rain outs throughout the Northeast.

Mets and Brewers will now have a city field day-night doubleheader today. Also postponements in Philadelphia and Washington. In Boston, the Red Sox led the Reds 2-1 fourth inning when they couldn't finish. They'll do so today. They'll start the second round at Wimbledon today. The first round saw four of the top nine seeds in both the men's and women's singles lose, including Coco Gauff, who just won the French Open, Jess Fagula, who just won the Grass Court tune-up in Germany today,

Pagula had not had a first-round Grand Slam defeat since 2020. Alex Severo had not had one since 2019. He lost as well. Miles Turner with Indiana for a decade just helped them get to the finals, leaving the Pacers to sign with the Bucs. Milwaukee waved Damian Lillard. He becomes a free agent. He's unlikely to play next season due to his Achilles injury. Shea Gilgis Alexander just had a season where he won the scoring title, the regular season MVP, and the finals MVP. Only others to do that.

Kareem, Michael, and Shaq. SGA cashing in. Supermax deal with Oklahoma City that will pay him $71 million a year. John Stasch, Bloomberg Sports.

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 President Donald Trump's one big beautiful bill is running into new resistance from Republicans now that it is back before the House with changes from the Senate. House Speaker Mike Johnson says his members are headed back to Washington though for a final vote that he hopes to pull off today.

They're on the way back. Of course, we have weather delays all around the country, so there's lots of complications, but welcome to Congress. Welcome to Congress, says House Speaker Mike Johnson. Joining us now, Bloomberg News Global Business Editor Josh Galew. You can have multiple meanings to welcome to Congress just from the fact of seeing how the sausage is made, Josh. Good morning. Is this a case of here we go again with this bill? It's

It looks like it. You know, the House voted, of course, in May on the initial bill, and then it went to the Senate and had several changes. And every indication from some of the Republican holdouts –

both from May and since then, that a bit, you know, some of the skeptics, every indication is that they're still against many of the main provisions of this bill. So I think Johnson has a very, very steep hill to climb today if they're going to try and pass it. You know,

many of the ways that you're trying to pay for these big tax cuts hit programs like Medicaid or food assistance programs that impact several constituents in, in Republican lawmakers districts. So they're, they're loathe to get on board with something like that. And we'll have to see today, you know, it'll be a tough day of debate, but we'll,

there are strong indications that they're not going to be able to get over the line today. I mean, he can only afford to lose three Republican votes to get this through. And there are certainly more than that that are voicing some skepticism. And you've got to think, Josh, that those moderate Republicans who might be concerned about the Medicaid cuts are feeling sort of dueling political pressures here from their constituents who might be concerned about some of those cuts and from

President Trump, who can put his own thumb on the scale pretty severely. Absolutely. This is a central pillar of his domestic policy agenda, and he hasn't... He's said as much that he's going to go after people in primaries, etc., who don't get on board with this bill. And

And, you know, we've seen in the past he's able to twist people's arms and get it done. So this is a real test of, you know, Republican solidarity here and how far people are willing to go to stand up for certain principles that they're really committed to, as opposed to going along with the president who has some other ideas.

And speaking of other ideas, you've got on the other side, the ultra conservatives who are sounding like they're standing pretty firm. At least some of them sound like they may be just because of the deficit impact from this. I mean, this is a pretty wide herd of cats for House Speaker Johnson to try to corral around.

Yeah, absolutely. There's no one single issue that's going to get all those Republican skeptics on board. And as you say, this is going to add trillions to the deficit over time. And some of the assumptions that are built into the –

Models for this about growth, economic growth and how that's going to pan out with tax cuts are hotly debated, not just by Democrats, but also by Republicans. And we've already seen, you know, early when this first began in April, we saw the the bond market reacting rapidly.

quite starkly. So the fiscal conservatives are definitely not happy with the kind of debt that's going to pile on the country in the long term. Okay. So while President Trump is trying to twist arms with his own Republicans, it sounds like he's trying to twist some arms as well ahead of the July 9th tariff deadline, particularly with Japan. How's that going?

Right. So Japan is the latest target here. And Trump has said that he's trying to push for them to open up to U.S. rice exports. Japan is standing pretty firm right now. And the question is what tack they're going to take, if they're going to continue to have sort of a friendly exchange or if this is going to push them to back up against the wall, to stand firmer against

his demands. And, you know, they are part of a whole range of countries that have been wrapped up in negotiations since he paused these broad tariffs in April for 90 days. And the deadline is coming, right? Sort of similar to the tax bill. He wants to, after the July 4th weekend, come out with his one big, beautiful bill. And he also next week wants to roll out all these

trade agreements. But really, the U.K. and China are the only two that have shown significant progress in deals. So I think the administration is also quite aware that they're about to miss some targets and want to have something to show for it and trying to pick up the pressure in the meantime.

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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