Senate Reverses Course on Iran; Micron Soars on Forecast

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1:19Transactions, instant. Inventory, precise. Operations, in sync. Absolutely genius. From sold-out crowds worldwide to managing the morning rush, Genius keeps operations running smoothly. One portado. Flawless pour, perfectly timed. Just beautiful. Big league reliability for any business. That's Genius. 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 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.

2:08The 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. President Trump spoke to reporters on Capitol Hill after the launch. Bloomberg's Stephen Dennis reports Republican Senator Bill Cassidy drew the president's anger for voting for the War Powers Resolution. The way Cassidy described it is Trump asked who could possibly have voted for this thing.

2:43And Cassidy said, do you want, you know, 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's Stephen Dennis reports Senator Cassidy got a White House briefing on Iran after the lunch from Vice President J.D. Vance. By the end of the day, Cassidy said he shouldn't have lost his cool. I lost my temper. That's not appropriate. It's the Irishman. Last night, Senator Cassidy and fellow Republican Rand Paul reversed their votes and rejected a separate War Powers resolution.

3:18Paul posted on X that he voted present to give the president more space and leverage to negotiate 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 peace in the Middle East. We're going to have peace in the Middle East. Since the agreement, the stock market and your 401ks are skyrocketing upward, and oil prices are plummeting downward today, it hit a new low, and the world is a much safer place.

4:12President Trump's speech kicked off a 16-day Great American State Fair on the Mall. Several artists pulled out of the event saying it was more political than they'd been led to believe, so the president said he'd headline the festivities himself. Well, turning overseas, Karen, the European Union is signing off on its trade deal with the U.S. 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 US industrial goods and some agricultural products in exchange for a 15 % tariff ceiling on its exports to the US.

4:55The 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, Bloomberg Radio. Great, Ewan, thank you. The deal comes a day after NATO Secretary General Mark Ruta 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 against Iran. Ruta displayed posters highlighting how much more money NATO nations have spent on defense since Trump took office.

5:31After the meeting, Ruta 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 Ruda 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.

6:07The 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 chips says its revenue will be approximately$50 billion in the fiscal fourth quarter. That's five zero. And it's almost seven billion more than analysts estimated. Gene Munster is managing partner at Deepwater Asset Management. The street is going to get more comfortable at growth rates for the hyperscalers and the broader capex of 40 percent plus. And what that means is that these companies are going to continue to grow faster for longer than most investors expect.

6:50and despite all this skittishness within the market, this is just a resounding endorsement that we are, in fact, earlier than most believe in the build-up. 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. Those shares up 12.5 % in early trading. At its investor day, the company forecasts sales of 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 pass the Federal Reserve stress test.

7:33Bloomberg's Alexis Christophoris joins us in New York with the details. Alexis. 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, JPMorgan Chase, Goldman 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. JPMorgan 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.

8:13The firms collectively posted their largest annual profit since 2021 on the back of record trading revenue. In New York, Alexis Christophorus, 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 peace deal.

8:48The global benchmark dropped below$7 ,248 a barrel. That was its pre-war closing price on a closing basis. West Texas Intermediates also near its pre-war price of$6 ,702 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$3.92 a gallon.

9:15Time 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.

9:40The 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 Arez, who lives in Caracas, says it's the strongest he's felt. Glasses fell to the floor. Neighbors are coming down to the streets. Acting Venezuelan President Delcy 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.

10:24This Paris visitor says it would be better if museums open in the morning and then close during the hottest part of the day. You would rather close it like before the like 12, for example, and close 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 reach 111 degrees in Pio 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 Jano Lieber says he does not want to enter a deal with President Donald Trump without protections.

11:02The 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 week. The White Sox won the first two, but the Guardians beat Chicago 4-3, intending to go back into first place. At the World Cup in Vancouver, Switzerland beat Canada 2-1. Switzerland wins the group.

11:36Canada advances as well, and so does Bosnia-Herzegovina, where the 3-1 win 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. Stay with us. More from Bloomberg Daybreak coming up after this. The thing about AI for business, it may not automatically fit the way your business works. At IBM, we've seen this firsthand. But by embedding AI across HR, IT, and procurement processes, we've reduced costs by millions, slash repetitive tasks, and freed thousands of hours for strategic work.

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14:45Coast 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. 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.

15:25That was Senator 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 four senators, in particular Bill Cassidy, about them voting for a War Powers Act on Tuesday.

16:11So 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 very naturally and was very, very angry with these senators. and that very much came to the fore yesterday in this meeting. We heard from Senator Cassidy there, who really spoke up to the president. What is interesting is that later on in 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.

16:52So falling back in line, but does that sort of paper over the concerns that 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's still lingering concerns about it. 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 Hamuz, what Iran will be willing to agree to, how Iranian funds might potentially be unfrozen.

17:41And 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 are heading. 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 on the hours before he was set to sign this bill that he would not sign it.

18:26His reasoning was he wanted a separate bill, a voter 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.

19:04interesting to have all these cross currents alex ahead of uh the rally that uh president trump publicized you know days before uh all these tensions and you know 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 a sort of classic trump rally um he you know touted uh the return of America, you know, under his leadership. And he did address the war with Iran, defending, you know, 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.

19:51So gas prices have risen quite considerably in the U.S. as a result of 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 not be, you know, a major issue for voters. 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.

20:29Eastern 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.

21:06And 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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