Tax Bill Hits Republican Resistance; Trump's Tariff Threats Continue

0:00Some people treat ChatGPT like some kind of smart search engine, and some use it to get work done. ChatGPT Work is a new way of working in ChatGPT that can take action across your apps and files, stay with a project for hours if needed, and turn a goal into finished work. It's designed to help you move from a chaotic starting point to a reviewable first version. So all the source materials, briefs, and scattered information that you have to grind through to turn into something useful can just become something useful. Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChatGPT.com by selecting Work Mode, available on Plus and Pro plans.

0:42Healthcare doesn't always work great. If you've ever waited on a refill or couldn't schedule an appointment, you get it. That's the kind of stuff Optum is changing. They're using data and technology to integrate patient care, pharmacy, and everything else. So healthcare is connected, not complicated. What's that look like? Cheaper prescriptions that are easier to get and care that looks at the whole person, how you need it. Optum is helping make healthcare work as one for everyone. Learn more at business.optum.com. This is Robert Smith from Business History. If you're listening to this, there's a good chance you're a small business owner.

1:16And like every small business owner, you started with a dream to do what you love and watch it grow. What you probably didn't dream about? Keeping up with cyber threats. That's where MasterCard can help with access to tools that help identify cyber threats to better protect your business. Building your dream business? Priceless. For cybersecurity in a changing world, there's MasterCard. Learn more at MasterCard.com slash small business. 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 in Washington where President Trump's massive tax and spending cut bill is now back before the House.

2:03The legislation barely passed the Senate with a tie-breaking vote from Vice President J.D. Vance. But now it's running into resistance from Republicans who don't like some of the changes to the bill. House Speaker Mike Johnson says he's not surprised. We knew we would come to this moment. We knew the Senate would amend the House product. I encouraged them to amend it as lightly as possible. They went a little further than many of us would have preferred. House Speaker Mike Johnson says moderates in his caucus are worried about the scale of Medicaid cuts, while ultra-conservatives are vowing to oppose the bill over its deficit impact.

2:39President Trump is calling resistant Republicans grandstanders. GOP leaders hope to vote on the bill today to get it to the president's desk by the end of the week. Meanwhile, Nathan, there's just one week left until President Trump's July 9th deadline to raise tariff rates on dozens of countries. The president says he's not considering any delays, and he's renewing his threat to cut off talks and impose higher rates on several nations, including Japan. President Trump is sounding more optimistic about reaching a deal with India. He says it's possible to lower the country's tariffs if India allows U.S.

3:11companies to compete in its market. Now let's turn to new developments in the Middle East, Karen. President Trump says Israel's agreed to terms for a 60-day ceasefire in Gaza. He's warning Hamas to accept the deal before conditions get worse. But Bloomberg Jerusalem reporter Dan Williams says there is no sign the militants group position has changed. It would appear its conditions remain firm. Those conditions are for a full Israeli withdrawal or actually, more precisely, an Israeli declaration that this war is over with a full withdrawal of troops and tanks from the Gaza Strip. Effectively, Hamas wants a guarantee that once it delivers all the hostages it still holds, some 50 people, then it will be effectively provided immunity from an Israeli offensive designed from the outset to topple it from power and to disarm it.

3:57Bloomberg's Dan Williams says Israeli Prime Minister Benjamin Netanyahu plans to visit the White House next week. As for the war in Ukraine, Nathan, the Trump administration has halted weapons transfers to Kiev as Russia's attacks intensify. intensify. The White House confirmed a report from Politico which said the Pentagon's under secretary for policy spearheaded the move on concerns U.S. stockpiles had run too low. The move comes days after Russia launched its heaviest attack yet over the weekend. A record 537 drones and missiles fired across Ukraine. Following the weapons review, the White House issued a statement saying the strength of U.S.

4:33armed forces remains unquestioned. Just ask Iran. Let's turn to markets now, Karen. Futures are higher just a bit ahead of tomorrow's key jobs report. Fed Chair Jay Powell says the central bank would likely have already cut interest rates this year if not for President Trump's use of tariffs. Powell spoke at the European Central Bank Forum in Central Portugal. In effect, we went on hold when we saw the size of the tariffs and where essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs. In remarks heard live here on Bloomberg, Fed Chair Jay Powell said he's focused on maintaining the Fed's dual mandate despite political pressure to move on rates.

5:13The Fed's next rate decision is July 30th. Nathan, we're keeping an eye on bank shares this morning after Wall Street's biggest lenders boosted their dividends. And we bring in Bloomberg's John Tucker with more. John, good morning. Good morning, Karen. JPMorgan Chase, Goldman Sachs, and Bank of America among the big Wall Street lenders that are raising their quarterly payouts. Now, this payday for investors also includes a$50 billion share buyback from JPMorgan Chase. The move comes after the banks passed the annual Fed stress test, a product of the 2008 financial crisis. The Fed's exam sets the tone for how aggressive banks are in returning capital to shareholders.

5:52All 22 banks comfortably passed after determining they could withstand more than$550 billion in losses if some financial disaster took place. The Fed said the results showed that the large banks are well positioned to weather a severe recession. It's important to note the test did get easier this time around. Among the shares trading this morning, pre-market JPMorgan Chase up one-half of a percent. I'm John Tucker, Bloomberg Radio. All right, John, thanks. We're also watching shares of Centene this morning. They are plunging nearly 26 percent. The health insurer polled its 2025 guidance. Centene focuses mostly on Medicaid and the Affordable Care Act insurance marketplaces.

6:31It says an early analysis of data showed a significant revenue hit. Nathan, Tesla delivers its latest quarterly sales report later this morning. Analysts expect a 12 percent drop from last year. The stock is off to a rough start for the third quarter with Elon Musk and President Trump renewing their feud over the tax and spending cut bill. Tesla shares slopped more than 5 percent yesterday. They're higher this morning, up 1 percent. And Karen, Paramount Global's reached a settlement with the president over his lawsuit alleging election interference by CBS News. The network showed two versions of a 60 Minutes interview with then-Vice President Kamala Harris back in October.

7:09Paramount agreed to pay$16 million, including plaintiff's fees, with the rest going to a future presidential library. President Trump was seeking$20 billion. No money will go to him directly, but this deal is seen as critical for Paramount to gain federal approval for its pending merger with Skydance Media.

7:30Time 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. A federal jury deliberating the fate of music mogul Sean Diddy Combs in New York will return for a third day of deliberations today. The jury reached verdicts Tuesday on all but one of the five counts the hip-hop mogul faces, the top charge of racketeering conspiracy. The judge ordered the jury to continue deliberating. Robert Mintz is a partner at McCarter & English and spoke with Bloomberg law host June Grasso.

8:05It would suggest that perhaps they have found unanimity on the other charges in the sense that they have returned a guilty verdict. That would be probably what most prosecutors would read into that decision, but we won't know until the verdict is actually read in open court. Robert Mintz with McCarter in English speaking with Bloomberg Law host June Grasso. The jury's partial verdict remains under wraps for now. Brian Koberger has agreed to plead guilty to murdering four University of Idaho students as part of a deal with prosecutors to avoid the death penalty. A change of plea hearing is set for today.

8:43the 30-year-old Koberger is accused in the stabbing deaths at a rental home near campus in Moscow, Idaho in November of 2022. The plea has deeply divided the victim's families. Steve Consalves, the father of one of the victims, Kaylee Consalves, says he is strongly against it. Shut up and get on board and deal with it. That's really what they told us. They failed me. They It's our children. How can you say it's just when you haven't even talked to us to see what justice looks like? The other victims included Ethan Chapin, Zana Kornudel, and Madison Mogel. The Trump administration is holding back close to$7 billion in support of students learning English, summer programs, and after-school programs.

9:34The Education Department has notified state education agencies that the funds would not be available. Little explanation has been given as to why state officials are expected to challenge the moves as illegal. 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. Some people treat ChatGPT like some kind of smart search engine and some use it to get work done. ChatGPT Work is a new way of working in ChatGPT that can take action across your apps and files, stay with a project for hours if needed, and turn a goal into finished work.

10:10It's designed to help you move from a chaotic starting point to a reviewable first version. So all the source materials, briefs, and scattered information that you have to grind through to turn into something useful can just become something useful. Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChatGPT.com by selecting Work Mode, available on Plus and Pro plans. This is Robert Smith from Business History. If you're listening to this, there's a good chance you're a small business owner. And like every small business owner, you started with a dream to do what you love and watch it grow.

10:45What you probably didn't dream about? Keeping up with cyber threats. That's where MasterCard can help with access to tools that help identify cyber threats to better protect your business. Building your dream business? Priceless. For cybersecurity in a changing world, there's MasterCard. Learn more at MasterCard.com slash small business. Let's talk about healthcare for a second. It doesn't always work the way people expect it to. If you've ever waited on a prescription refill or had a hard time getting the care you needed, you know the feeling. The system should just work better for everyone. That's exactly what the people at Optum are trying to do every day.

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11:57Little by little, Optum is helping make healthcare work as one for everyone. Head to business.optum.com to see how.

12:31And a high fly ball to left center field. It's going, and it is gone! What a scene here at the Rogers Center. George Springer with a grand slam to blow it open. On TSN, seven RBIs for Springer. The Jays won by seven, 12-5. They've won five of the last six, 21 of 31. The Yanks, over the last two and a half weeks, just 6-11. And Toronto, only one game behind. Tampa Bay lost the Rays Trail by game and a half. Rain outs throughout the Northeast. Mets and Brewers will now have a city field day-night doubleheader today. Also postponements in Philadelphia and Washington. In Boston, the Red Sox led the Reds 2-1 fourth inning when they couldn't finish.

13:16They'll do so today. They'll start the second round at Wimbledon today. The first round saw four of the top nine seeds in both the men's and women's singles lose, including Coco Gauff, who just won the French Open. and Jess Pagula, who just won the grass court tune-up in Germany. Pagula had not had a first-round Grand Slam defeat since 2020. Alex Severo had not had one since 2019. He lost as well. Miles Turner with Indiana for a decade just helped him get to the finals, leaving the Pacers to sign with the Bucs. Milwaukee waived Damian Lillard. He becomes a free agent. He's unlikely to play next season due to his Achilles injury.

13:52Shea Gilgis-Alexander just had a season where he won the scoring title, the regular season MVP and the finals MVP. Only others to do that, Kareem, Michael, and Shaq. SGA cashing in. Super max deal with Oklahoma City that will pay him$71 million a year. John Stash, Bloomberg Sports. 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, and President Donald Trump's one big, beautiful bill is running into new resistance from Republicans now that it is back before the House with changes from the Senate.

14:36House Speaker Mike Johnson says his members are headed back to Washington, though, for a final vote that he hopes to pull off today. They're on the way back. Of course, we have weather delays all around the country. So there's lots of complications. But welcome to Congress. Welcome to Congress, says House Speaker Mike Johnson. Joining us now, Bloomberg News Global Business Editor Josh Galoo. You can have multiple meanings to welcome to Congress just from the fact of seeing how the sausage is made. Josh, good morning. Is this a case of here we go again with this bill? It looks like it. You know, the House voted, of course, in May on the initial bill, and then it went to the Senate and had several changes.

15:16And every indication from some of the Republican holdouts, both from May and since then, some of the skeptics, every indication is that they're still against many of the main provisions of this bill. So I think Johnson has a very steep hill to climb today if they're going to try and pass it. But, you know, many of the ways that they're trying to pay for these big tax cuts hit programs like Medicaid or food assistance programs that impact several constituents in Republican lawmakers districts. So they're they're loath to get on board with something like that. And we'll have to see today. You know, it'll be a tough day of debate, but there are strong indications that they're not going to be able to get over the over the line today.

16:11I mean, he can only afford to lose three Republican votes to get this through. So and there are certainly more than that that are voicing some skepticism. And you've got to think, Josh, that those moderate Republicans who might be concerned about the Medicaid cuts are feeling sort of dueling political pressures here from their constituents who might be concerned about some of those cuts and from President Trump, who can put his own thumb on the scale pretty severely. Absolutely. This is a central pillar of his domestic policy agenda. And he's said as much that he's going to go after people in primaries, et cetera, who don't get on board with this bill.

16:56And we've seen in the past, he's able to twist people's arms and get it done. So this is a real test of, you know, Republican solidarity here and how far people are willing to go to stand up for certain principles that they're really committed to, as opposed to going along with the president who has some other ideas. Speaking of other ideas, you've got on the other side, the ultra conservatives who are sounding like they're standing pretty firm. At least some of them sound like they may be just because of the deficit impact from this. I mean, this is a a pretty wide herd of cats for House Speaker Johnson to try to corral around.

17:35Yeah, absolutely. There's no one single issue that's going to get all those Republican skeptics on board. And as you say, this is going to add trillions to the deficit over time. And, you know, some of the assumptions that are built into the models for this about economic growth and how that's going to pan out with tax cuts are hotly debated, not just by Democrats, but also by Republicans. And we've already seen, you know, early when this first began in April, we saw the bond market reacting quite starkly. So the fiscal conservatives are definitely not happy with the kind of debt that's going to pile on the country in the long term.

18:20OK, so while President Trump is trying to twist arms with his own Republicans, it sounds like he's trying to twist some arms as well ahead of the July 9th tariff deadline, particularly with Japan. How's that going? So Japan is the latest target here. And, you know, Trump has said that he's trying to push for them to open up to U.S. rice exports. Japan is standing pretty firm right now. And the question is whether what tack they're going to take. if they're going to continue to have sort of a friendly exchange or if this is going to push them to back up against the wall to stand firmer against his demands.

19:00And they are part of a whole range of countries that have been wrapped up in negotiations since he paused these broad tariffs in April for 90 days. and the deadline is coming, right? Similar to the tax bill, he wants to, after the July 4th weekend, come out with his one big, beautiful bill. And he also next week wants to roll out all these trade agreements. But really the UK and China are the only two that have shown significant progress in deals. So I think the administration is also quite aware that they're about to miss some targets and want to have something to show for it and trying to pick up the pressure in the meantime.

19:43This 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 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.

20:23Search 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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