Senate Reverses Course on Iran; Micron Soars on Forecast

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Accounts subject to credit approval. Restrictions and limitations apply. Cards are issued by JPMorgan Chase Bank NA, member FDIC. 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. Can we begin with tensions flaring on Capitol Hill between President Trump and Senate Republicans? The President went into lunch with members of his own party upset over a vote in the Senate rebuking his war with Iran. The President refused to sign a bipartisan housing bill that Congress had just passed ahead of the meeting. Afterward, the President put a positive spin on it.

I think we had a really great meeting, and we're very proud of the party. We like our leader. We like everybody really in the room. I don't like a few people, but that's okay. I think you know who they are. The President Trump spoke to reporters on Capitol Hill after the lunch. Bloomberg Stephen Dennis reports Republican Senator Bill Cassidy drew the president's anger for voting for the war powers resolution. The way Bill Cassidy described it is Trump asked who could possibly have voted for this thing.

And Bill Cassidy said, do you want the real answer? And Trump said yes. And he said, well, you know, we haven't been briefed. You said this war was going to last four weeks. It's lasted four months. None of your original aims have been met. Bloomberg Stephen Dennis reports Bill Cassidy got a White House briefing on Iran after the lunch from Vice President JD Vance. By the end of the day, Bill Cassidy said he shouldn't have lost his cool.

I lost my temper. That's not appropriate. It's the Irish human. Last night, Bill Cassidy and fellow Republican Rand Paul reversed their votes and rejected a separate war powers resolution. Paul posted on X that he voted present to give the president more space and leverage to negate. a lasting peace. Nathan, all this provided the backdrop as President Trump took to the National Mall for a rally marking America's 250th anniversary.

Tonight, as we stand on the edge of our 250th year of independence, I am thrilled to declare that America is back. And the president used his speech to defend the Iran War. For the first time, in 3,000 years, we are finally going to have a lot of. peace in the Middle East. We're going to have peace in the Middle East. Since the agreement, the stock market and your 401 case are skyrocketing upward, and oil prices are plummeting downward today. It hit a new low. And the world is a much safer place. President Trump's speech kicked off a 16-day great American state fair on the

mall. Several artists pulled out of the events saying it was more political than they'd been led to believe. So the president's said he'd headline the festivities himself. Well, turning overseas, Karen, the European Union is signing off on its trade deal with the US. Let's go to London, get the latest with Bloomberg's Ewan Potts. Good morning, Ewan. Nathan and Karen, it has taken almost a year of talks, but EU member states have finally approved the European Union's trade deal with the United States.

Under the terms, the EU will scrap levies on U.S. industrial goods and some agricultural products in exchange for a 15% tariff ceiling on its exit. exports to the U.S. The agreement of the 27 member countries comes just nine days before President Trump's deadline. Good news for strained transatlantic relations, but plenty of disagreements remain, not least on issues including metals, tariffs and tech regulation. In London, I'm Ewan Potts, Blinberg Radio. Right, Ewan, thank you. The deal comes a day after NATO Secretary General Mark Rudha met with President Trump in the Oval Office. He was trying to ease the president's anger over the reluctance of alliance nations to help with the campaign.

pain against Iran. Mark Rutte displayed posters highlighting how much more money NATO nations have spent on defense since Trump took office. After the meeting, Mark Rutte spoke with Bloomberg's balance of power. What I think is important is to be fair, and fairness dictates that this president is really doing a huge amount of work to get NATO in better shape. He had a big success last year in the Hague with the 5% spending commitment. And NATO Secretary General Mark Rutte told Bloomberg's balance of power, President Trump is committed to the alliance and will play a critical role at a meeting of NATO leaders set for next month in Turkey. Catch the full conversation on our new video hub on Bloomberg.com and the Bloomberg business app. Let's turn to markets now, Karen.

The AI trade is back in play. NASDAQ futures are up more than 2% following earnings from micron technology. That stock is up 16.5% pre-market. The largest U.S. maker of computer memory chip says, its revenue will be approximately $50 billion in the fiscal fourth quarter. That's 5.0. And it's almost $7 billion more than analyst estimated. Gene Munster is managing partner in Deepwater asset management. The street is starting to get more comfortable at growth rates for the hyperscalers and the broader cap-ax of 40% plus. And what that means is that these companies

are going to continue to grow faster for longer than most investors expect. And despite all this skittishness within the market, this is just an over, just a resounding endorsement that we are, in fact, earlier than the most believe in the buildup. Ms. Jean Munster of Deepwater Asset Management, Micron has also secured 16 strategic customer agreements averaging three years in length. Nathan Qualcomm, also giving a lift to chip stocks, though, shares up 12.5% in early trading. At its investor day, the company forecast sales a more than $15 billion a year by fiscal 2029. in the booming market for AI components and data centers.

Shifting focus now from big tech to big banks, Karen. Those stocks will be in focus today after they passed the Federal Reserve stress test. Bloomberg's Alexis Christophress joins us in New York with the details. Good morning, Nathan. The Fed's exam, which was an outgrowth of the 2008 financial crisis, showed that all of the banks examined would maintain enough capital to withstand a hypothetical economic downturn.

As a result, J.P. Morgan Chase, Oldman Sachs, Citigroup, Morgan Stanley and Wells Fargo all increased their dividend payouts. Bank of America says it will make its next quarterly dividend announcement after its July board meeting. J.P. Morgan also authorized a new $50 billion share repurchase program. The nation's six biggest banks paid out more than $140 billion in dividends and buybacks last year. The firms collectively posted their largest annual profit since 2021 on the back of record trading revenue. In New York, Alexis Christophress, Bloomberg Radio. All right, Alexis, thank you.

It's also a big morning for economic news. We get the fed's preferred reading on inflation. The Personal Consumption Expenditures Price Index for the month of May. Forecasters expect the data to show acceleration on both a monthly and year-over-year basis. Well, Karen, Brent Oil is declining, erasing all its wartime gains after flows through the Strait of Hormuz ramped up following progress on a U.S.-Iran-S.-Steal. The global benchmark dropped below. 72.48 a barrel. That was its pre-war closing price. On a closing basis, West Texas Intermediate's also near its pre-war price of 6702 a barrel after it rallied to a conflict peak of just above

119 in March. As for what we're paying at the pump, the average price of gasoline has dipped to just under 392 a gallon. 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. Two massive back-to-back earthquakes in Venezuela have killed at least 32 people and injured more than 700. The quakes toppled dozens of buildings and devastated the country's main international airport. The magnitude 7.2 earthquake on Wednesday evening was followed a minute later by an even stronger quake measuring 7.5 with its epicenter west of Caracas. Associated press reporter Juan Arrez, who lives in Caracas, says it's the strongest he's felt.

Classes fell to the floor. Neighbors are coming down to the streets. Acting Venezuelan President Delci Rodriguez said more casualties were expected with the country declaring a state of emergency. The U.S. says it is sending resources in support. France's average daily temperature reached an all-time high of 105 as Europe's heat wave continues. It is so hot tourist sites have shut down. This Paris visitor says it would be better if museums open in the morning and then closed during the hottest part of the day. You would rather close it like before the like 12, for example, and closed until the 5 and then open it again so people can visit it in the evening when it's not that hot outside. Daytime highs reached 111 degrees in Paiyo in the West.

The head of New York City's transit system is standing by his decision not to sign an agreement on Penn Station's renovation. MTA chief operating officer Jan O'Leber says he does not want to enter a deal with President Donald Trump without protections. The dispute comes as President Trump Wednesday asked Congress to direct $1 billion toward renovating Penn Station. Global news, 24 hours a day, and whenever you want it with Bloomberg News now, I'm Michael Barr, and this is Bloomberg, Karen. Thanks, Michael. Time now for our Bloomberg Sports Update, and for that we bring in John Stashauer. Thanks, Karen, top two teams in the AL Central have been playing all weight.

The White Sox won the first two, but the Guardians beat Chicago, 4-3, and 10 needs to go back into first place. At the World Cup in Vancouver, Switzerland beat Canada 2 to 1. Switzerland wins the group. Canada advances as well, and so does Buzz. of Hirsigna, where the 3-1 went over Qatar, and they could be the U.S.'s opponent in the knockout round. The United States team plays Turkey A tonight. It's a meaningless game for both teams. That's your Bloomberg Sports Update.

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Coast to coast on Bloomberg Radio, nationwide on SiriusXM, and around the world on Bloomberg.com and the Bloomberg business app. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. Well, tensions may have reached a boiling point, between President Trump and Senate Republicans over the war with Iran. Now, the Senate has reversed course on a war powers resolution,

but Republican Senator Bill Cassidy says he doesn't regret speaking his mind. The American people need to know more than we are being told. The Senate needs to know, and it does not appear, although I don't know for sure, that the course of this is going the way that we were told. That was Bill Cassidy after a closed-door lunch on Capitol Hill with the president and a briefing later at the White House. Joining us for more is Bloomberg DC breaking news editor, Alexander Pearson and Alex, by all accounts,

it sounded like things got pretty heated behind closed doors on Capitol Hill. Just how tense was it? Good morning. Good morning, Nathan. Yeah, you're right. It was a very tense closed door meeting yesterday at the Capitol. What's interesting is it was originally thought to be a discussion about a housing bill that Trump had not.

given his signature to but actually then became sort of a shouting match between Trump and for senators in particular Bill Cassidy about them voting for a war powers act on Tuesday. So they crossed the aisle, they voted with Democrats for this measure that essentially called for the war with Iran to end or for the White House to seek congressional authorization to continue it. Trump was opposed to the measure, naturally and was very, very angry with these senators and that very much came to the four yesterday in this meeting. We heard from Bill Cassidy there, who really spoke up to the president. What is interesting is that later on the day, another vote was had on this, and it was reversed.

So Senate Republican leadership were able to essentially signal to the White House that they've been able to fall back in line with the White House's wishes, but it certainly was a very tense day between Hill Republicans and the White House. So falling back in line, but does that sort of paper over the concern? that Bill Cassidy and presumably others may have raised at this meeting about the progress that's being made toward a more permanent peace deal with Iran? It doesn't appear to be completely papered over there. There's still lingering concerns about it.

Bill Cassidy did say after his meeting at the White House that some of his concerns were allayed. And for now, they seem to be falling in line. But yeah, under the surface, there certainly are concerns about where the negotiations are heading, just given the uncertainty about the future arrangement for Homoos, what Iran will be willing to agree to, how Iranian funds might potentially be unfrozen. And so this topic is unlikely to now be a closed one. We're likely to see more tensions in the future if the White House, at least from the perspective of certain senators, is not more forthcoming about where the negotiations have.

heading. And you mentioned that the president canceled plans to sign this bipartisan housing bill that I think Republicans were hoping to be able to tout as a way to alleviate many of American voters' economic concerns heading into the November midterms. What's the status of that housing bill now? Yeah, that's right. So President Trump blindsided congressional leadership yesterday by announcing only hours before he was set to sign this bill that he would not sign it. His reasoning was he wanted a separate bill of a Voda ID bill known as the Save America Act to be passed first. And the issue now is that he's withheld a signature from the housing bill, but it will actually pass into law after 10 days, even if he does not sign it. And he, well, he could vote veto it as well, and that would send it back. And that could make things

a little bit awkward for the Republicans on the Hill because they then have to vote again for it in opposition to the White House. But House Speaker Mike Johnson said yesterday that he believes President Trump will sign it, and it does seem likely that in some form it will pass eventually. Interesting to have all these cross currents, Alex, ahead of the rally that President Trump publicized days before all these tensions and was just held last night on the National Mall in prime time. What's the message that came out of that?

Yeah, it was very much a sort of classic Trump rally. He touted the return of America under his leadership, and he did address the war with Iran, defending his policy on that, saying it was obviously an important war to ensure that they wouldn't get nuclear weapons. But he also then defended the White House in terms of certain affordability concerns. So gas prices have risen quite considerably in the US as a result of the world. the war. You know, he acknowledged that, but then said, now that it's over, those will be coming down very quickly and should hit, you know, pre-war levels very soon. And so for him, you know, the message

was very much, there's nothing to really worry about. The war is over. And as we head towards the midterms, you know, affordability will, will not be, you know, a major issue for voters. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wal- 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 991 in Washington, Bloomberg 929 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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