Ukraine Strikes Russia Ahead of Talks; Trump-Backed Candidate wins Poland's Election
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Good morning. I'm Lisa Mateo. And I'm Karen Moscow. Here are the stories we're following today. We begin with the latest developments in the war in Ukraine. Moscow and Kiev, they are preparing to send delegations to Turkey for a second round of peace talks today. And this comes after a Ukrainian drone attack destroyed more than 40 Russian planes deep in Russia's territory. Ukraine claims the operation caused losses totaling at least $2 billion. Here's President Volodymyr Zelensky speaking through an interpreter.

34% of the strategic cruise missile carriers stationed at air bases were hit. Our personnel operated across multiple Russian regions in three different time zones, and the people who assisted us were withdrawn from Russian territory before the operation.

They are now safe. Zelensky's comments came as his country also came under one of the longest barrages from Russian missiles and drones on Sunday. Now, Lisa, another major story that we're following this morning. Eight people have been injured in an attack at an event for Israeli hostages in Colorado. Officials say the suspect, 45-year-old Mohammed Sabri Solomon, shot at Free Palestine and threw an incendiary device into the crowd during the attack in the city of Boulder.

Local Police Chief Stephen Redfern says the neighborhood will stand strong. Older is not immune to tragedy, sadly, and I know a lot of people are scared right now. A lot of people are upset and questioning how this happened and why.

All I know is Boulder has recovered before from acts of violence and we will again. Boulder Police Chief Stephen Redfern says the eight victims who were wounded range in age from 52 to 88 and the injuries span from serious to minor. Karen, in Europe, a nationalist candidate backed by Donald Trump won Poland's presidential election. Karol Nowrocki, who has no previous political experience, defied the law.

defeated the centrist mayor of Warsaw in a blow to the country's pro-European Union government. Bloomberg's Oliver Crook is covering the election in Warsaw. I think there are also much larger implications beyond Poland for this. I mean, let's not lose sight of the fact that the EU is currently engaged in a trade war, trade diplomacy with the United States. And what the EU really wanted was more solidarity, and they did not want a sort of prominent nation, a protagonist within Europe, basically undermining

the unity within Europe and electing somebody who is really sort of very EU skeptical. Bloomberg's Oliver Crook says Carol Navratki won 50.9% while Rafael Tavskoski won 49.1%. Well, Lisa, tensions may be escalating between China and the U.S. China is now accusing the U.S. of violating their recent trade deal and vows to take measures to defend its interests.

The Chinese Ministry of Commerce is rebuking President Trump's claim on Friday that Beijing breached the consensus reached in Geneva last month. Still, the director of the White House National Economic Council, Kevin Hassett, believes the two leaders could talk this week.

We expect us going to have a wonderful conversation about the trade negotiations this week with President Xi. That's our expectation. But the bottom line is that we've got to be ready in case things don't happen the way we want. The White House National Economic Council's Kevin Hassett spoke on ABC's This Week. Catch the program Sundays right here on Bloomberg Radio. Well, Karen, Treasury Secretary Scott Besant also made the rounds on the Sunday talk shows.

He spoke with CBS's Face the Nation, also heard right here on Bloomberg Radio about the federal debt ceiling. The United States of America is never going to default. That is never going to happen. We are on the warning track and we will never hit the wall.

Now, Treasury Secretary Scott Besson declined to specify an X date for when the Treasury will run out of cash. Republican congressional leaders have attached an increase in the debt limit to President Trump's tax and spending bill, which potentially puts avoiding a default at the mercy of complex negotiations over the legislation.

Lisa, General Electric is passing on additional charges caused by President Trump's tariffs. The world's largest aircraft engine maker has about $500 million in residual cost challenges stemming from the tariffs. Chief Executive Larry Culp spoke earlier this morning with Bloomberg's Guy Johnson in New Delhi. We've been advocating for his return to where we were on the heels of the 1979 Civil Aviation Agreement.

which really provided tariff-free trade amongst all the signatories. That was a positive for the U.S. aerospace industry. I think that is why the U.S. enjoys a $75 billion annual trade surplus today.

We'll see how that plays out. There are a series of bilateral negotiations that are active. GE chief executive Larry Kolb says he is in close contact with the company's supply chain and would like the industry to speak with a unified voice to achieve a duty-free regime. Meanwhile, the global airline industry is scaling

back its profit outlook because of the trade tensions. The International Air Transport Association now expects the industry to earn a collective $36 billion this year. The new forecast is about $600 million less than its previous forecast at the end of last year. The North American market is expected to see the highest total profit contribution at $12.7 billion, followed by Europe.

Lisa, let's turn to the markets now. And again, futures are lower as we kick off the trading week. As we mentioned, China and the U.S. are accusing each other of violating a trade deal concluded last month. President Trump also said he would double tariffs on steel and aluminum imports. And the dollar may be in for more pain ahead. We get that story with Bloomberg's John Tucker. John, good morning. Good morning, Karen. Morgan Stanley predicts in a year from now, the dollar is going to tumble to levels last seen during the pandemic.

They see the U.S. dollar index falling about 9 percent. The Morgan Stanley report is adding to a chorus of voices questioning the outlook for the dollar. As traders and analysts weigh President Trump's disruptive approach to trade, the U.S. dollar index has dropped just about 10 percent since a February peak. As the president's trade policies dense sentiment on U.S. assets.

and trigger a rethink on the world's reliance on the greenback. As a result, in the U.S., prices of imported goods, they're expected to rise, while the cheaper dollar means American exports could become more attractive to customers overseas. The U.S. dollar is the closest thing there is to a global currency. It's the cornerstone of international finance and a payment method of choice for more international transactions than any other currency.

This morning, dollar DXY down about six-tenths of a percent. In New York, I'm John Tucker, Bloomberg Radio. All right, thank you, John. In deal news, French drug maker Sanofi has agreed to buy Cambridge, Massachusetts-based Blueprint Medicines. Now, the price tag, more than $9.1 billion.

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. In Massachusetts, protests were held at Milford Town Hall after an 18-year-old was detained by federal immigration agents over the weekend as he drove to volleyball practice off campus. For

Friends and relatives who have only identified him as Marcelo are upset. His girlfriend is rallying support for the student athlete. He is not a criminal. He's a member of his community and he's never done anything wrong.

Meanwhile, Nick Molinari, president of the Milford Teachers Association, called it immoral, unnecessary, and should be universally condemned. Over the weekend, President Trump withdrew his nomination for Jarek Isaacman to be the next NASA administrator after learning that Isaacman had donated to Democrats. Isaacman is a close ally of Elon Musk, who announced last week he's leaving his role in Washington.

A former personal assistant to Sean Diddy Combs, who claims the rap mogul raped her, will face further cross-examination at his sex trafficking trial today. Meanwhile, President Trump did not rule out a pardon for Combs at the White House. Former federal prosecutor and former New Jersey Governor Chris Christie. Never before have we seen a president who makes it a gate decision

to getting to a pardon, to be a political supporter of his, a vocal, current political supporter. Chris Christie spoke to ABC. They honored the lives of 9-11 first responders. Thousands of runners participated in the annual Tunnel to Towers climb at One World Trade Center in New York City Sunday morning. Runners included Michael Burke, the brother of FDNY Captain Billy Burke, one of the 343 firefighters killed in the 9-11 attack.

I think of, you know, my brother Billy. You know, that day he told his men to keep going. I'm right behind you. So that's what I was thinking going up those stairs. Just keep going. Keep going. Don't quit. He never stopped. He made sure his men got out. He's always trying to get more out. 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.

When you have bars in the sky, onboard showers and award-winning in-flight entertainment, it's no surprise that Emirates was recently named the best airline in the world. We fly you to over 140 destinations and with partners across the globe, we connect you to another 1,700 cities across six continents. So when we say we're also the largest international airline, what we really mean is...

If you're going there, so are we. Book now on Emirates.com. Fly Emirates. Fly better. How can you free your team from time-consuming office tasks? Amazon Business empowers leaders to not only streamline purchasing, but better support their teams.

Smart business buying tools enable buyers to find and purchase items fast so they can focus on strategy and growth. It's time to free up your teams and focus on your future. Learn more about the technology, insights, and support available at AmazonBusiness.com.

Time now for the Bloomberg Sports Update. Here's John Stashower. John, good morning. Good morning, Karen. The Yankees haven't been swept in a series all season. They lost the first two to the Dodgers, but after that 18-2 drubbing Saturday, they salvaged one last night, winning in L.A. 7-3 behind another strong outing from Ryan Yarborough. Six innings gave up just to run four hits. He's 3-0. His ERA is under three. The Yankees went 6-3 on the road trip.

Come home, play Cleveland tomorrow. It's the Mets who play at Dodger Stadium tonight at Citi Field. Mets trailed the Rockies 1-0. And Alonzo hits one in the air to deep right field. Back goes Freeman to the warning track near the end. It's up 1-3.

3-1.

in WNBA history. The Memorial Golf in Ohio won by who else? Scotty Scheffler had one bogey in his last 40 holes, finished 10 under par, won by four. This is the tournament run by Jack Nicklaus. He was asked about Scheffler. He wouldn't want to brag about what he does, but he has the ability to bring his level to whatever level it needs to be. That's what good players do.

And he's not good players, he's great players. I mean, look at the record that he has had the last few years. It's unbelievable. In Wisconsin, they play the U.S. Women's Open. The Swede, Maya Stark, won by two over world number one Nelly Korda, whose brother lost in the third round of the French Open. But two Americans are into the men's quarterfinals in Paris, and none had been since Andre Agassi in 2003. Straight set wins in the fourth round for both Tommy Paul and Francis Tiapo. John Stasch, Bloomberg Sports.

All right, John, thank you. And futures are lower this morning. S&P futures down 0.6% on 35 points. Dow futures down 0.5% or 214 points. NASDAQ futures down 0.8% or 165 points. 10-year treasury yield 4.43%. 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.

It is 5.13 on Wall Street. Drone strikes ramp up in Ukraine and Russia ahead of crucial peace talks this week. An attack, an event for Israeli hostages in Colorado. Here to tell us the very latest on these world events is Bloomberg News global business editor Josh Galoud. I have to start with Ukraine. They staged this dramatic series of strikes across Russia around the same time you had Moscow launch one of its longest drone missile strikes against Kyiv.

What were the targets and how bad is the damage? The damage appears to be pretty significant. Ukraine launched a very widespread attack with drones and it reached all the way into eastern Siberia, which is clearly meant to be a signal of deterrence.

how capable they are of inflicting damage going forward. That's certainly a disincentive to Russia to keep this thing going on. They targeted mainly Russian aircraft, military aircraft, including long range bombers that are capable of deploying conventional and nuclear weapons.

So it's really a significant blow to the Russian military. More importantly, it's a signal of what kind of problems Ukraine can continue to create for them going forward if they don't reach a ceasefire. On the other hand, Russia, as you suggested, that Russia launched an attack on Kyiv and at least 12 people were killed in a strike on our military base.

So, you know, both sides heading into these talks, which are restarting today, both sides have sent a very strong signal that they're really not well, that these talks are very unlikely to result in a significant progress towards a ceasefire today or this week. It could be.

But there's still a lot of space to bridge before they reach any kind of agreement. Yeah. So the talks are still happening and taking place? Yes, they're still taking place and they're meant to meet today in Istanbul. Okay. And the kind of message, you mentioned this a little bit, but dive a little bit deeper of what kind of message these latest attacks send as they go into these talks.

Right. Well, you know, both sides have been pretty dug in on their positions and Ukraine has pushed very hard to first secure a ceasefire and, you know, get security from the West and making sure that it is, you know, a widely agreed deal.

cease to fighting that international partners are part of. Russia, on the other hand, has been, you know, it's had these, quote, maximalist demands saying that, you know, they'll only agree to a ceasefire when there's a formal commitment for Ukraine not

to join NATO, when there's a recognition of its territorial gains throughout this war, and some other conditions that have been just completely rejected by Kyiv. So they remain very far apart. You've seen President Donald Trump sort of distance himself from the process as the prospects for a

peace have gone down. So, you know, look, they are meeting today. Again, it's not a high-level meeting, but it's not the president's. It's government officials. So we'll have to see where things land at the end of the week. All right, Jasper, before you go, I have to get into this developing news in Colorado. A number of people were injured after that attack. It was an event for Israeli hostages in Colorado. Any word on a motive the FBI is saying it's a targeted act of violence?

That's right. They've said it's a targeted act of violence. And of course, this comes after last month's incident where two Israeli embassy employees were shot and killed in Washington right outside an event at the Capitol Jewish Museum. So at the same time, the person they arrested, they claim was screaming free Palestine as well. So in terms of motivation,

If that is true, it seems relatively clear. But we'll have to see as we get updates later today from Colorado. ♪

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

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