Trump Deploys Marines to LA; US-China Trade Talks Resume
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Good morning, I'm Nathan Hager. And I'm Lisa Mateo. Here are the top stories we're following today. Lisa, we begin in Los Angeles where tensions between police and anti-deportation demonstrators have stretched into a fourth night. The Trump administration is escalating its response. It is mobilizing 700 Marines on top of the 2,000 National Guard troops that were activated over the weekend. L.A. Mayor Karen Bass says the move doesn't make sense.

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. Now the state of California is suing to try to stop the deployments. Here's State Attorney General Rob Bonta. The authority that the president cites only allows for the deployment of the National Guard by the president when there's an invasion by a foreign nation, which there's not, when there's a rebellion to overturn the leadership of the United States of America, which there is not.

President Trump says activating the guard was a great idea, and he's backed comments from White House Borders R. Tom Holman that California Governor Gavin Newsom and other local leaders could be arrested if they interfere with the response. You can protest if you want. You have that person's right. But when you cross the line of putting your hands on an ICE officer, impeding our enforcement operations, annoyingly harboring, concealing, dealing with an alien, that's a crime.

Borders are Tom Holman was asked on CNN if Governor Newsom has done anything to warrant arrest yet. He said, quote, absolutely not. And back in Washington, Nathan, debate continues over President Trump's big tax and spending cut bill. House Speaker Mike Johnson says he's trying to get Senate Republicans to do as little as possible to change the forty thousand dollar cap on state and local tax deductions.

House Republicans from high-tax states have threatened to block the bill if the Senate waters down the write-off, but no Senate Republican is from a high-tax state. Meanwhile, President Trump is touting one small piece of the one big, beautiful bill, savings accounts for babies. For every U.S. citizen born...

After December 31st, 2024, before January 1st, 2029, the federal government will make a one time contribution of one thousand dollars into a tax deferred account that will track the overall stock market. In other words, it'll be pegged.

to an index that will pick. President Trump was joined at the White House by several corporate executives. Dell CEO Michael Dell promised a dollar-for-dollar match to the accounts for Dell employees, and Robinhood Markets said it will provide technology and capital resources for the initiative. Lisa, let's turn now to the latest developments in trade negotiations between the U.S. and China. They're continuing for a second day in London. Both sides are looking to ease tensions over rare earth supplies and tech exports.

Treasury Secretary Scott Bassett and Commerce Secretary Howard Ludnick have been leading the U.S. delegation. Ludnick says the talks have been fruitful. President Trump is echoing that. 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.

The first day of talks lasted more than six hours. The U.S. signaled it's willing to remove restrictions on some tech exports in exchange for assurances that China is easing limits on rare earth shipments. And the Trump administration making another sweeping move to reshape the federal government. The Department of Health and Human Services is dismissing all 17 members of the committee that advises the government on vaccines. Bloomberg's Amy Morris reports from Washington.

Health and Human Services Secretary Robert F. Kennedy Jr. said in an opinion piece in the Wall Street Journal that, quote, a clean sweep is needed to reestablish public confidence in vaccine science. But public health officials call this a blatantly political move that will further undermine trust in vaccine safety. The group, known as the Advisory Committee on Immunization Practices, reviews the latest data and makes recommendations that determine whether insurers cover shots, among other things.

In Washington, Amy Morris, Bloomberg Radio.

In prepared remarks, Quintenz will say he is well-versed not just in policy issues that affect farmers and ranchers who use futures to hedge price risks, but in emerging technologies like blockchain and crypto. We turn to the markets now, Nathan. Futures, well, they're a little changed as we head into Tuesday's session. Stocks in the U.K. hit a record. And in the U.S., Mark Zuckerberg is making a major push into artificial intelligence at meta-platforms.

Bloomberg's John Tucker joins us with the very latest. John, it sounds like a sci-fi movie plot. Yeah, it has everything but an underground lair here. Zuckerberg recruiting for a secretive new team. He's got a pretty audacious goal in mind, Lisa. He's trying to achieve artificial general intelligence, AGI. This is the idea that machines can perform as well as humans if Meta does achieve this milestone successfully.

He could weave it into a range of AI tools. He's personally going to hire a team of about 50 people. This is called the Super Intelligence Group. He's already rearranged the desks at the company's Menlo Park headquarters, so the new staff is going to sit near him. Zuckerberg is building this secret team in tandem with a planned multi-billion dollar investment in Scale AI.

This is going to be Meta's largest external investment to date. Zuckerberg is racing against competitors like OpenAI and Google to become a market leader for AI. Meta shares this morning, pre-market, little changed. In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. Apple shares also little changed in the pre-market after the iPhone maker failed to ease concerns about its position in AI.

The shares fell more than 1% yesterday after the iPhone maker kicked off its annual Worldwide Developers Conference in California. Apple did reveal a sweeping new software redesign called Liquid Glass. It's an interface that is said to unify the user experience across all devices from iPhones to MacBooks. Bloomberg's Ed Ludlow covered WWDC in Cupertino.

A lot of Liquid Glass's inspiration comes from the work that Apple had done with Vision Pro. You know, literally the UI and UX of that experience using Vision Pro, the translucency of it. And so by making it uniform, you know, having the same look across iPhone, Mac, iPadOS, and Vision Pro and Watch, you know, it just makes you more familiar and I guess open to using the full hardware suite of products.

Bloomberg's Ed Ludlow says also as part of rebranding efforts, Apple confirmed it will use years rather than version numbers to identify its newest operating systems. And Nathan, a departure at Goldman Sachs. Aaron Arth is retiring after nearly three decades at the Wall Street powerhouse. Arth is a partner in Goldman's financial and strategic investors group within investment banking. He helped shape the bank's global financing group and investment banking franchises.

Time now for a look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael Barr. Good morning, Michael. Good morning, Lisa. New York authorities are sending a message to anyone thinking about violent protests in the city. In a speech, New York City Mayor Eric Adams called for protesters to remain peaceful and warned authorities will not accept violence and lawlessness.

The escalation of protests in Los Angeles over the last couple of days is unacceptable and would not be tolerated if attempted in our city. There were a series of smaller protests held in New York yesterday. At Trump Tower in Midtown Manhattan, about 20 to 25 protesters were arrested after they entered the lobby.

The protests come as violent demonstrations broke out in Los Angeles in response to immigration raids across the area. Today is New Jersey's primary day. Six Democrats and five Republicans are running to succeed term limited Democratic Governor Phil Murphy.

Democrats in the race include U.S. Representatives Josh Gottheimer and Mikey Sherrill, also running Newark Mayor Roz Baraka, New Jersey City Mayor Steve Phillip, New Jersey Education Association President Sean Spiller, and former State Senate President Steve Sweeney.

In the Republican primary, former State Assemblyman Jack Cittarelli, State Senator John Bramnick, former Englewood Chief Cliffs Mayor Mario Kranjic, talk radio host Bill Spadia, and general contractor Justin Barbera. Tropical storm Barbara strengthened into a hurricane off Mexico's coast, the first of the Eastern Pacific hurricane season. Bloomberg meteorologist Craig Allen has the latest.

The tropical season is still fairly active off the Mexico coastline in the Pacific, and we do have Barbara, who was the first hurricane of the season. Barbara had 75 mile per hour winds for about 12 hours or so, but now has weakened and will continue to weaken about 200 miles off the central Mexico coastline. There will, however, be rough surf and dangerous rip currents along the vacation resorts all up and down the west coast of Mexico.

Bloomberg meteorologist Craig Allen. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Lisa. Thank you, Michael.

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Time now for our Bloomberg Sports Update. That's brought to you by Flushing Bank. For that, we bring in John Stashower. Good morning, John. Good morning, Lisa. First two Stanley Cup final games went to overtime. The Panthers and Oilers split them. The series moved to Florida, and game three was a Panthers round. Brad Marchand, who scored the game winner in Edmonton, scored 56 seconds in. The lead was 3-1 in the second period. And then Kachuk in against Klingberg. Huck played to the line, and it's taken away. A breakaway, Lewostorino.

Serena hands it on. In. Then it scores!

Top shelf of the Panthers. Take a 4-1 lead with 12.34 to go here in the second. What a shift for playoff Sam. And Panthers radio, Sam Bennett has scored 14 playoff goals. That's four more than anyone else. They added two more in the third, both on power play. The final was 6-1. Florida leads the series 2-1. Also from hockey, T.J. Oshie retiring at age 38 after 16 seasons. Not a surprise injuries kept him from playing this past season. Oshie played a big part.

in the capitals winning the stanley cup in 2018. mets and yankees were off there were four extra inning games at fenway the red sox tied the raise in both the ninth and tenth but tampa bay won 10 8 and 11. it was the major league debut for the sox top prospect roman anthony recently hit a home run in the minors that went 497 feet first game in boston he went over four the phillies

End of the five-game losing streak. Scored twice in the 11th. Beat the Cubs 4-3. The Dodgers began a big series in San Diego, winning 8-7-10. And Arizona beat Seattle on a Josh Kneeler walk-off grand slam in the 11th inning. It's the Mets and Nationals tonight. Mets are 24-7 at Citi Field. Yankees are in Kansas City. The Yanks trying to avoid a third loss in a row. They gave up 21 runs.

in those last two games in Boston. Running back Nick Chubb after seven seasons in Cleveland. Injury riddled the last two. Has signed with Houston. John Staschauer, Bloomberg Sports. Lisa and Nathan. All right. Thank you, John. Taking a quick look at the markets right now. Futures, well, pretty much treading water. We have S&P futures little changed.

Up about a point. Dow futures down about a tenth of a percent, 42 points. And Nasdaq futures, little changed, up about nine. We have the two-year yield at 3.98%, down two basis points. And the yield on the 10-year, 4.45%, and that's down two basis points.

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. The stakes have been raised even higher after four days of protests in Los Angeles. President Trump is deploying 700 Marines to join the 2,000 National Guard members he activated over the weekend. California is suing over that move, but the

president says Governor Gavin Newsom should be thanking him. He should only be happy I sent in the military because if I didn't send him in, you would have had a problem there, the likes of which we haven't seen in a long time. That was President Trump at the White House yesterday. This morning, we're joined by Bloomberg News senior editor Derek Walbank. And Derek, this latest show of military force in L.A. seems to raise things to a whole new level. Good morning.

Good morning, Nathan. Yes, it certainly does. It is a move that does not have any recent precedent to it, and it is one that the state and local leaders have said is actually inflaming tensions, which is contrary exactly what the president said.

We did see overnight additional clashes there. We also saw protests spreading to a number of other cities, many of them peaceful. Some of them where protesters clashed with police, including in Austin, Texas, by the state capitol. But look, there are no signs right now that the demonstrations are...

over immigration customs enforcement detentions are going away anytime soon. This is a live issue. This is an issue that the Trump administration wants to have as a central issue. If you're thinking about the stories that have been written recently, including on the Musk feud, or what's in the One Big Beautiful Bill and difficulties in passing that, or some other things,

The Trump team would very much rather have the conversation about immigration. They would much rather have that conversation being had over photos of burning taxis on the streets of Los Angeles with be-masked protesters waving Mexican flags. There is a certain iconography there that the Trump administration in this fight is candidly quite happy to have. Yeah.

Interesting. When you have the president seeming to endorse this idea that his borders are, Tom Holman put out that if there's interference with the response that the governor could be arrested. Where does this go from here, Derek?

Well, you know, one thing I should say before the start of the answer to that is that Holman did walk that back a little bit in a late interview. But I will say, look, you know, it raises the stakes. And one of the things that I'm particularly interested in here, Nathan—

is that there is a certain, you know, cometh the hour, cometh the man situation for Gavin Newsom, who has emerged as Trump's main foil. Look, we've sat here talking, you and I, for five months about how Democrats have been struggling for a message and a messenger to sort of talk about Donald Trump in a contrasting sort of way. And up into circumstance steps Gavin Newsom. You know, he's, I think,

widely thought to be interested in a 2028 run for president himself. So he may or may not be happy to have the contrast moment. But Newsom has become one of the most prominent Democrats in the country now, trying to offer a contrasting period with Trump as Democrats are trying to find their own message. So that is, I think, going to be something that is unforeseen.

underscoring, undergirding all of this going forward, you really can't lose sight of the political aspect to it as well. At the same time, look, on the policy, as I said, the Trump administration wants this fight. The immigration, the deportations, that is central as a plank to the Republican platform under Trump. And this is something that he says he was elected to do and he wants to go do it.

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 Bloomberg 99.1 in Washington.

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 Nathan Hager. And I'm Lisa Mateo. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.

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