California Runoff and Other Primary Races; Iran Escalation

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at chase.com forward slash reserve business. Chase for business. Make more of what's yours. 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. Karen, we begin with politics and a busy night of primary elections from coast to coast. Let's start in California where a crowded race for governor is still being decided. Right now, about half the votes are in, and Republican Steve Hilton is in the lead with 27.7% of the vote.

It looks very much as if Californians really will have the chance to vote for change in November and take our state. and take our state in a new direction. Steve Hilton is a GOP strategist with President Trump's endorsement. He's followed by a Democrat Xavier Becerra in second with 25.4%. Billionaire Tom Steyer is third with 19.6%. The top two vote getters will face each other in the November general election under California's jungle primary system. And in the Los Angeles mayor's race, Nathan incumbent Karen Bass has been forced into a runoff.

According to the Associated Press, she currently has third. 36% of the vote, short of the 50% of the vote needed to win the election outright. Her challenger still has not been decided, but right now, Republican Spencer Pratt is in the lead for second place with 29.1% of the vote. Obviously, I was going to accept whatever God's plan was tonight. I was going to be happy if I wasn't moving forward because I would have known God didn't want me to be the mayor. And but now I feel very confident that I'm going to continue to work hard. Spencer Pratt is a former reality TV star who's accused Bass of letting last year's Los Angeles wildfires get out of control and not doing enough to tackle homelessness. Running behind Bass and Pratt was Nithier Rahman, a former ally of the mayor and a progressive city council member elected with support from the Democratic Socialists of America.

Roman currently has 22% of the vote. That was also an important election night in New Jersey, Karen, in a House district that could be key for Republicans holding their majority in November. With 90% of votes counted, former Navy helicopter pilot Rebecca Bennett is projected to win the Democratic primary in the 7th Congressional District with 45 and a half percent. Bloomberg's Tom Annette reports this result is not a big surprise. She had raised much more money than the rest of the field. You know, the sort of the party establishment had been sort of coalescing around her. And I think, you know, as as more and more money was drawn in, you know, she, she established. yourself as the clear frontrunner. Bloomberg's Tom and Ed notes Bennett will go on to face

Republican incumbent Tom Kane Jr. He's been away from Capitol Hill since March with an unexplained medical issue. He's missed more than 100 votes to date. In the race for New Jersey Senate, Nathan, Justin Murphy is the Republican winner with 33.3% of the vote. Murphy defeated a field of three other candidates during the GOP nod. He'll face Democratic incumbent Cory Booker who's running for a third full term. And a Lilliamahia, is the winner of the Democratic race in the 11th Congressional District seat left open by New Jersey Governor Mikie Sherrill. Mejia picked up 81 and a half percent of the vote. And some other key races to watch, Karen, were in Iowa where Democrats are looking to make inroads.

In the race for Senate, state representative, and former Paralympic athlete Josh Turrick beat state senator Zach Walls, 62.6 to 37.4 percent. This campaign has been about fighting for the middle class, working families, rural communities, small family farms, and working with anyone to address rising costs, stagnant incomes, and out-of-control corruption in D.C. Democrat Josh Turk will face Republican Ashley Hinson in November. She won her primary against former state senator Jim Carlin, 74.2 to 25.9%. In the Iowa governor's race, President Trump's endorsement was not enough to carry Congressman Randy Feenstra to victory. He lost narrowly to conservative Zach Lawn 37.8 to 37%.

Lawn will face Democrat Rob Sand, who ran unopposed. In New Mexico, Nathan, Democrat, Deb Holland is a step closer to becoming the nation's first Native American governor. The former Interior Secretary won her primary against Sam Bregman, 72.3 to 27.7%. And Holland will face Republican Gregory Hull in November. In Montana, Democrat Alani Bankhead and Republican Kurt Almmy won their Senate primaries. They could face a tough challenge from independent Seth Bodnar. The former president of the University of Montana raised more money than all me and all five Democratic candidates combined. And in South Dakota, incumbent Senator Mike Rounds easily won the Republican nomination for a fourth term.

He'll face Democrat Julian Bowdoin, an independent military veteran Brian Banks, who some Democrats see as the stronger opponent. Well, let's turn from politics now to get the latest developments in the war in Iran, Karen, the U.S. and Iraq. have been exchanging strikes in their latest flare-up in this fragile ceasefire. The U.S. attacked Iranian radar and command and control sites, while Iran tried to target an airbase in retaliation. We get more from Bloomberg Middle East breaking news editor, Patrick Sykes. We saw the Iranians firing missiles and drones reportedly at multiple Gulf countries, I think in particular Bahrain and Kuwait.

Bahrain, of course, is particularly important as it's the home to the U.S. naval presence in the region. But now both sides are. kind of sticking to the line that the ceasefire remains in place, despite these increasingly frequent violations of it, it does feel like they are becoming more frequent. And with that, I think the question will be how far they can extend this narrative that the ceasefire is still in place. Bloomberg's Patrick Sykes reports, Kuwait is now saying an Iranian attack on its international airport killed at least one person and wounded others. U.S. and Iranian negotiators are grappling with several critical questions.

including freedom of navigation through the Strait of Hormuz and the future of frozen Iranian funds. Meanwhile, Nathan, former Secretary of State Mike Pompeo conceded that Iran still has bargaining power in negotiations with the United States. He tells Bloomberg he expects the conflict to continue. I think it is very likely that we will have to go back at it and provide more weaponry to the Israelis and fight alongside them to do more damage to the Iranian regime kinetic damage. But I hope I'm wrong. I hope in the end the Iranian regime comes to a fundamentally different decision. The Iranian people get control of that nation. If that's the case, then the Iranian regime should be,

the Iranian people could be welcomed back into the world of civilized humanity. Former Secretary of State Mike Parmpeo made the comments in an interview with Bloomberg's has Linda Amin during the Namura Investment Forum in Singapore. And for the full conversation, check out our new video hub on the Bloomberg business app. Well, Karen, Global Trade is in focus once again this morning. The U.S. is proposing a new tariff of at least 10 percent. on imports from 60 trading partners. This follows an investigation into how trade partners handle goods,

allegedly produced by forced labor. The probes are one part of the administration's effort to revive President Trump's tariffs after the Supreme Court ruled many of them unconstitutional. We get more from Bloomberg's senior U.S. government editor, Derek Walbank. Donald Trump's administration had signaled very clearly when the U.S. Supreme Court ruled out the main thrust of his global tariffs, that they were going to try and rebuild the tariff. wall that has been a centerpiece of his foreign economic policy. This is in line with that.

Bloomberg's Derek Walbank says the new tariffs won't go into effect immediately and are subject to a public comment and review period. In Washington, Nathan, following a backlash from lawmakers, acting Attorney General Todd Blanche says the Trump administration will drop plans for a $1.8 billion fund to pay victims of alleged government weaponization. And Bloomberg's Amy Morris reports from our nation's capital. Todd Blanche told lawmakers the anti-weaponization fund plan, are scrapped. We're not moving forward with the fund. You're right that there's a date that in the case in the East District of Virginia in June, but we are not moving forward with the fund, period. However, Todd Blanche did say the Justice Department is not abandoning an element of the settlement

with the IRS giving Trump and his family immunity from tax audits. Todd Blanche's comments came during a House committee hearing in response to mounting pressure from Republicans for reassurances that the Justice Department's plans were off the table before they move forward with legislation that funds immigration enforcement agencies. In Washington, Amy Morris, Bloomberg Radio. Amy, thank you. Some big news in the news business this morning. The turmoil at CBS News continues with a star anchor forced out.

Bloomberg's John Tucker Carlson joins us with the details. John. And CBS has fired Scott Pelly. Nathan, the move comes after the long time 60 minutes, correspondent accused to editor-in-chief Bari Weiss of murdering the program and questioned the qualifications of his new boss, Nick Bilton. The tensions came to a head after Pelley confronted Bilton at an internal meeting on Monday. The CBS News Division has stumbled through one issue after another since Bari Weiss was named to lead the enterprise last year.

She replaced longtime CBS staffers and polled a 60-minute segment just before airing. The new management has been accused of being too cozy with the Trump administration. Pelley issued a statement after his firing in which he says CBS owner Paramount Skydance is, quote, apparently trying to curry favor with the Trump administration, end quote. Paramount is currently seeking approval from the Trump Justice Department for its acquisition of Warner Brothers Discovery. I'm John Tucker Carlson, Bloomberg Radio. All right, John, thank you. Let's turn to the markets now.

And futures this morning are little changed after another record-setting day on Wall Street. The S&P 500 is now gained for nine straight days. In company news, Reuters is reporting SpaceX is aiming to sell shares at $135 apiece for its record-breaking, $75 billion IPO. Dan Ives, Global Head of Technology Research at Wedbush Security, says investor interest in tech is set to continue. It's a tidal wave of IPOs that are coming, but they're all at the heart of the AI revolution. And I think to some extent, when you look where we are, we continue to believe this AI party started 9 p.m. It's about 11.30 p.m. Party goes to 4 a.m. Wed Bush's Dan Ives. The deal involving Elon Musk's firm would be the largest IPO on

record more than doubling the 29.4 billion dollar raised by Sadia Ramco in 2019. Chip stocks are going to remain in focus on Wall Street today. Broadcom reports earnings after the close of today's trade. We get a preview from Bloomberg's Tom Busby. Expect Broadcom to post an earnings beat on solid revenue from its XPU chips and continued strong demand for its AI networking gear. And some long-term agreements it has with Google, meta, and Anthropic have given investors a better outlook for the company's pipeline through 2027. beyond. Bloomberg Consensus calls for revenue of $22.13 billion and adjusted earnings per share of $2.39. Tom Busby, Bloomberg Radio.

All right, Tom, thank you. Well, the rally and shares of Marvell technology continue this morning. They are up more than 12 percent after surging 33 percent yesterday. The gains were fueled by comments from NVIDIA CEO Jensen Wong. He predicted that the semiconductor and networking company would be the next business to hit a $1 trillion valuation. Well, there's a very different stock story playing out overseas this morning, Karen. Shares of Axo Nobel are plunging 18%. Nip on paint holdings and Sherwin Williams have ended their effort to buy the Dutch paintmaker. Axel will now proceed with its plan merger with U.S. firm Exaltah coding systems.

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. the Trump administration is defending its plan to send Americans who may be exposed or infected with Ebola to a facility in Kenya. But for now, that facility appears to be on hold after it was blocked by a Kenyan court. Dr. Memant Oz, the head of Medicare and Medicaid services, told reporters at the White House press briefing Tuesday that transporting them back to the U.S. would be too far.

There's a U.K. base there. We have other people who might be willing to welcome us, and we have our German colleagues as well. So there's many places we can send folks, but sending them across the world, especially we're not sure what's going on with them, is probably not the wisest move. Dr. Oz, as the Congo has now recorded 344 confirmed infections and 60 confirmed Ebola deaths. The mayor of Newark, New Jersey,

officially announced the city is expanding a lawsuit against Delaney Hall, the controversial detention center used to house detainees picked up by ICE agents. The city already has a lawsuit against Delaney Hall. which is privately run over allegations of code violations. Mayor Raz Baraka wants the center shut down amid reports of poor conditions inside. It's troubling, which forces us now to expand, and our business administrator will talk about that, our lawsuit against Delaney Hall further than just code enforcement violations. Mayor Baraka also criticized the deployment of New Jersey State Police as tensions grow over protest.

Meanwhile, the curfew has been lifted. Former New York Republican Representative George Santos is now under scrutiny for his trading on prediction market sites. According to reports, Kalshi identified suspicious activity in a market about whether Santos would attempt the State of the Union address this year. Santos went to prison last year on federal fraud charges after being ousted from Congress. Global news, 24 hours a day. And whenever you want it with Bloomberg News now, I'm Michael Barr. This is Bloomberg, Karen. Thanks, Michael.

Time now for our Bloomberg sports update, and for that we bring in John Stashauer. Thanks, Karen. Entertaining start to the Stanley Cup final in Raleigh. Carolina scored 25 seconds in, let 2-0. Then Vegas had leads of 3-2 and 4-3. And when Tomas Hurdle scored with three-lap minutes to go, the Golden Knights won game one over the Hurricanes 5 to 4. NBA finals begin tonight, Nixon Spurs in San Antonio.

Aaron Donald was the star defensive alignment for the Rams until retiring after the 23 season with the Rams acquisition of Miles Garrett, Donald is said to be considering coming out of retirement. That's a Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Support for the show comes from public.com. If you're actively involved in your portfolio, you probably catch yourself repeating the same actions, buying the dip, manually sweeping idle cash, putting on a hedge. On public, you can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English. Like, if the VIX hits 25, buy a put option on the S&P 500. Or if my cash balance goes above

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com and the Bloomberg business app. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager on the morning after a busy night of primary elections from coast to coast. And while the results are still coming in, California's packed governor's race is starting to look like a two-man showdown between Democrat Xavier Becerra and Trump-backed Republican Steve Hilton. It looks very much as if Californians really will have the chance to vote for change in November. Our Republican Steve Hilton addressed his supporters last night as those results continue to roll in. For more on this and the other key races to watch, we're joined this morning by University of Virginia politics professor Jennifer Lawless.

It is great to speak with you this morning after a busy election night, professor. Just looking at the snapshot right now, we can call it Hilton 28, Xavier Becerra 25, Tom Steyer, the billionaire, almost 20%. Are you surprised by a result like this in California? Good morning. Good morning. Thanks for having me. I am not surprised by the result. This race has been up and down and all over the place for months. The Democrats didn't get the candidate that they expected when Eric Swalwell dropped out and Xavier Becerra kind of resurrected himself from the dead. And so there's been a lot of uncertainty, a lot of late decision making. And I wouldn't count Tom Steyer out yet either because there were so many votes cast on election day that we've got to be patient as they come in. With Hilton in the lead, at least at the moment, what kind of a warning signal does that send potentially to Democrats?

Still look at a hold on in California. Well, the best scenario for Democrats to hold on, obviously, was to have two Democrats emerge in the top two seats. it's not entirely surprising that Hilton managed to grab one of them or looks like he's going to grab one of them. But, you know, a couple of weeks ago, it looked like it was possible that two Republicans might. And so I just think it sends a clear signal that there is a strong Democratic base in California, but it's not a given that a Republican can't make it statewide into the top two. And that's certainly going to shape not only the governor's race, but also down-ballot contests that have seen a lot of redistricting. It didn't take long for the Associated Press to project L.A. Mayor incumbent Karen Bass

forced into a runoff in her race. How worried should she be this morning? She should be pretty worried. This is the first time that an L.A. Mayor has faced a runoff in more than a decade. And frankly, the person who she's likely to face, Spencer Pratt, is a victim of the Palisades fire that many voters believe she did a poor job. handling. So the idea that this is going to be a referendum not only on her term as mayor, but specifically on how she responded to those fires, doesn't put her in as, you know, firm, doesn't give her as firm footing as she might have if she was facing somebody else. Let's take a look at a race that could be pretty key for control of Congress in November, the New Jersey 7th District, where Republican Tom Kane Jr. has been dealing with this undisclosed

medical issue. How do you think he could stand up against the Democratic nominee here, Rebecca Bennett, the former Navy helicopter pilot? She's an incredibly strong candidate. It is a split district. This is one of the Democrats' best opportunities to take back a seat. And frankly, King's silence on his absence is somewhat striking. You know, he's missed more than 100 votes. I think voters in general feel like they deserve to be represented. And this will be a good example of whether voters are willing to, in some cases, overlook party identification and vote across the party simply because they want somebody who's actually present in the House of Representatives to make sure that their interests are heard. Because she's a strong candidate, because she's seen as a moderate,

she's actually got a shot at defeating an incumbent. How important could this race be, given all the fighting around redistricting across the country that's led up to all these races? Well, any race that the Democrats can focus on that isn't a result of a redistricted race provides them an opportunity. If they want to take back the House of Representatives, they can't bank entirely on redistricting, which is something that they thought they would probably be able to do a couple of months ago. And so any vulnerable incumbent, any incumbent who hasn't been representing his or her district, whether it's because they're out of sync with their constituents or because they haven't been showing up are real opportunities for the Democrats.

And this is certainly at the top of that list. 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 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...

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