US-China Trade Framework, Elon Musk's Regrets, and LA Unrest | Bloomberg Daybreak

US-China Trade Framework Agreement

• 🤝 The US and China have agreed on a framework to implement a prior consensus on trade, aiming to revive the flow of sensitive goods.
• 🇨🇳 China has pledged to speed up shipments of rare earth metals, while the US will ease some of its export controls.
• ⚠️ The deal awaits approval from Presidents Trump and Xi Jinping, with unresolved issues like China's trade surplus and dumping concerns remaining.
• 🇪🇺 Separately, the European Union anticipates trade negotiations with the US will extend beyond the July 9th deadline, facing potential 50% levies if no deal is reached.

Unrest in Los Angeles and Political Tensions

• 🚨 Los Angeles imposed a curfew in downtown areas experiencing unrest related to immigration raids, with nearly 380 arrests.
• 🇺🇸 Governor Gavin Newsom criticized President Trump's deployment of federal troops, warning that democracy is under assault and other states could face similar situations.
• 🗣️ The Trump administration stated federal forces are needed to support immigration agents and restore order amid escalating conditions.

Elon Musk's Apology and SpaceX Mission Delay

• 📝 Elon Musk expressed regret for some of his recent social media posts about President Trump, stating they "went too far."
• 🚀 SpaceX has postponed the Axiom Mission 4 launch to the International Space Station due to a liquid oxygen leak found in the Falcon 9 rocket.

New Jersey Gubernatorial Race and Tax Bill Debate

• 🗳️ Jack Ciattarelli and Mikie Sherrill won their respective Republican and Democratic primary elections for Governor of New Jersey.
• 🏛️ Debate continues on Capitol Hill regarding President Trump's $3 trillion tax and spending cut bill, with Republicans aiming to deliver on promises like ending taxes on tips and overtime.

Market and Economic Outlook

• 📈 Investors await the May consumer price index (CPI) report for clues on inflation, with expectations of rising prices for imported goods and used cars.
• 🏦 There is speculation about US Treasury Secretary Scott Besson potentially succeeding Jerome Powell as Fed chair, which could be viewed as a dovish signal by markets.
• 🚗 General Motors plans to invest $4 billion in US plants to boost output of gas-powered vehicles, reducing reliance on Mexican factories and creating US jobs.
• 🎮 Nintendo reported strong sales for its Switch 2, selling over 3.5 million units in four days.