Bloomberg News Now: Markets, Trump-Putin Call, Tax Bill, and Wells Fargo Update

Wall Street Closing Bell

• 📊 The S&P 500 was nearly flat, the Nasdaq gained 62 points, and the Dow lost 92 points.
• 📉 Traders reacted to weaker-than-expected economic data, increasing speculation of at least two Fed rate cuts this year.
• 📈 The ten-year Treasury yield closed at 4.36%, and the two-year yield at 3.87%.

International Relations and Ukraine

• 📞 President Trump spoke with Russian leader Vladimir Putin, warning of retaliation for Ukrainian drone strikes on Russian airfields.
• 💬 Trump described the call as "good" but not leading to immediate peace, noting Putin's intent to respond to the strikes.
• 🌍 Senator Bill Hagerty emphasized the U.S. leadership role in dealing with Iran, which he stated is behind Middle East disruption.
• 🛡️ The U.S. is reportedly refusing to provide air cover for a UK and France-led reassurance force for post-war Ukraine.
• 🤝 Ukrainian President Zelensky expressed willingness to meet with Putin even without a ceasefire, a proposal Putin has dismissed.

Tax Bill and Budget Deficits

• 💰 The Congressional Budget Office estimates the House version of the tax bill could add over $2.4 trillion to budget deficits in the next decade.
• 📉 Senator Ron Johnson suggested the CBO projections might be optimistic, citing interest rate and growth risks.
• 📢 Tech titan Elon Musk urged Americans to contact lawmakers to oppose the tax bill, calling it "Bankrupting America."
• 🏥 The White House is seeking to reduce Medicaid spending, with the CBO estimating at least 7.6 million people could lose health coverage.

Economic Indicators and Federal Reserve

• 📉 The Beige Book indicated a slight decline in economic activity, with businesses and consumers awaiting the impact of tariffs.
• 🧐 The Federal Reserve closely monitors the Beige Book for on-the-ground economic insights amidst uncertainty.

Wells Fargo Update

• ✅ Wells Fargo has been released from a Federal Reserve asset cap that restricted its size since early 2018.
• 🏦 CFO Mike Santomassimo stated that customer engagement remained strong, though growth was impacted during the restriction period.
• 🛠️ The bank still has work to do to fully resolve remaining consent orders.