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Israel launched strikes across Iran on Friday morning, targeting nuclear facilities and killing top military commanders in a major escalation against its chief adversary that risks sparking a broad war in the Middle East.

The strikes were far more extensive than those Israel carried out against Iran last year and underscored the country’s growing assertiveness, as well as its military and intelligence capabilities.

Iran appeared to launch a retaliatory barrage of missiles toward later Friday, according to the Israel Defense Forces, who said in a statement that “all of Israel” was under fire. Plumes of smoke could be seen over Tel Aviv on Friday evening. Iran did not immediately comment on the action. 

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg Washington Correspondent Tyler Kendall.
• Center for Strategic and International Studies Middle East Program Director Mona Yacoubian.
• The Washington Institute Senior Fellow Holly Dagres.
• Bloomberg Intelligence Senior Commodities Strategist Mike McGlone.
• Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino.

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President Donald Trump said Israel “could very well” strike Iran but that he had advised against an attack while negotiations were ongoing, as the departure of US staff from the region fans concerns about a coming assault.

“I don’t want to say imminent, but it looks like it’s something that could very well happen,” Trump told reporters at an event Thursday at the White House.

In recent days, Trump has said he is less confident the US will reach a deal with Iran to curb its nuclear ambitions in exchange for sanctions relief. The president has repeatedly said that while he wants a diplomatic solution, he does not want Tehran to acquire nuclear weapons and warned the US could resort to military action if a deal is not reached.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Center for Strategic and International Studies Senior Associate Natasha Hall.
• Beacon Global Strategies Managing Director Michael Allen.
• Bloomberg US Transport Deputy Team Lead Ryan Beene.
• Bloomberg Consumer Finance Reporter Paige Smith.
• Former Republican Congressman and Bloomberg Contributor Patrick McHenry.

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General Motors Co. plans to invest $4 billion in its US plants over the next two years in response to President Donald Trump’s tariffs in a move that reduces production in Mexico while boosting domestic output of some of its some of its top-selling gas-powered vehicles.

The spending will expand factories in Michigan, Kansas and Tennessee. The moves will boost annual US production capacity by 300,000 vehicles, GM Chief Financial Officer Paul Jacobson said at a Deutsche Bank conference on Wednesday

Assembly of several top-selling models, including its very profitable Chevrolet Silverado and GMC Sierra pickup trucks and the Chevrolet Equinox SUV, will move to factories in the US from Mexico. GM plans to add between 3,000 and 4,000 US jobs when all production is in place, a spokesman said.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg's Matt Miller and General Motors CFO Paul Jacobsen.
• House Republican Conference Chairwoman Congresswoman Lisa McClain of Michigan.
• Bloomberg Economics Chief US Economist Anna Wong.

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Any Senate tax bill that doesn’t exempt taxes on tips and overtime would be “dead on arrival” in the House, Ways and Means Chair Jason Smith (R-Mo.) said today on Bloomberg.

GOP Sens. including Thom Tillis (N.C.) and Lindsey Graham (S.C.) expressed skepticism about the cost and economic wisdom of including the two provisions, which were key campaign trail promises made by President Donald Trump. Senators instead called for funds to be used to make temporary business tax breaks permanent.

Such a change would a “no go” for House Republicans, Smith said. Sen. Josh Hawley (R-Mo.) said Trump told him this morning that tax exempt tips and overtime, as well as a tax cut for the elderly, are the most important provisions in the bill.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Chairman of the House Ways and Means Committee Jason Smith.
• Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino.
• Bloomberg Intelligence Senior US Policy Analyst Nathan Dean.

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Trade talks between the US and China will continue into a second day, according to a US official, as the two sides look to ease tensions over shipments of technology and rare earth elements.

Representatives for both nations ended their first day of negotiations in London after more than six hours of discussions at Lancaster House, a 19th century mansion near Buckingham Palace. The talks concluded around 8 p.m. London time. The advisers will meet again Tuesday at 10 a.m. in the British capital, the official said. 

The US delegation was led by Treasury Secretary Scott Bessent, with Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer. The presence of Lutnick, the former Cantor Fitzgerald CEO, underscored the importance that export controls are playing in these discussions.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg Chief Political Correspondent Annmarie Hordern.
• Wiley Rein Partner Nazak Nikakhtar.
• Bloomberg's Tom Keene and Paul Sweeney interview former New York Governor and Candidate for Mayor of New York City Andrew Cuomo.
• S-3 Group Partner Ashley Davis.
• Bloomberg Politics Contributor Jeanne Sheehan Zaino and Former RNC Communications Director Lisa Camooso Miller.

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When Elon Musk and Donald Trump joined forces during the presidential campaign, there was always a question over how long their alliance would last and who would prevail if it didn’t work out.

After the public spat between the world’s richest man and its most-powerful leader spun out of control on Thursday, the answer was clear: It was Musk who eventually backed down when Tesla Inc.’s stock price tanked and his net worth crumbled by $34 billion. The damage to Musk’s business empire will be difficult to repair — with Tesla’s stock up only about 4% soon after the market’s open, recouping just some of its previous day’s slide.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg Economics Chief US Economist Anna Wong.
• Former New Hampshire Governor Chris Sununu.
• Bloomberg Politics Contributor Jeanne Sheehan Zaino and Former RNC Communications Director Lisa Camooso Miller.
• Bankrate Washington Bureau Chief Mark Hamrick.

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President Donald Trump proposed ending Elon Musk’s government contracts and subsidies, escalating the war of words between the world’s richest man and the president he helped elect. 

“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!” Trump posted on his social media site Thursday. 

Trump’s threat strikes at a main source of the billionaire’s wealth. Musk’s Tesla Inc. and Space Exploration Technologies Corp. have benefited from federal contracts and subsidies. Ending contracts with Musk’s companies could prove legally and practically unwieldy, given they are deeply intertwined with US space and defense operations.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg Washington Correspondent Tyler Kendall.
• Bloomberg Politics Contributor Jeanne Sheehan Zaino and BGR Group International Practice Principal Lester Munson.
• Washington DC Mayor Muriel Bowser.

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The House-passed version of President Donald Trump’s tax and spending bill would add $2.42 trillion to US budget deficits over the next decade, according to a new estimate from the nonpartisan Congressional Budget Office.

The CBO’s calculation, released Wednesday in its so-called scoring of the “One Big Beautiful Bill,” reflects a $3.67 trillion decrease in expected revenues and a $1.25 trillion decline in spending over the decade through 2034, relative to baseline projections. The score doesn’t account for any potential boost to the economy from the bill, which could offset some of the revenue losses.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg Washington Correspondent Tyler Kendall.
• Republican Senator Bill Hagerty of Tennessee.
• Democratic Senator Elizabeth Warren of Massachusetts.
• Bloomberg Politics Contributor Jeanne Sheehan Zaino and Lighthouse Public Affairs Founder Chapin Fay.

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President Donald Trump worked the phones Monday and took to social media to try to sway Republican holdouts on his multi-trillion dollar tax bill, encountering conflicting demands from GOP senators even as he urged them to move swiftly. 

The legislation, which last month passed the House by one vote, faces opposition from both moderates and ultra-conservatives in the Senate, where Trump can afford to lose no more than three votes. 

“With the Senate coming back to Washington today, I call on all of my Republican friends in the Senate and House to work as fast as they can to get this Bill to MY DESK before the Fourth of JULY,” Trump wrote on Truth Social.

The president gave lawmakers at odds with one another the feeling that he was on their side.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg Washington Correspondent Tyler Kendall.
• Bipartisan Policy Center Senior Vice President Bill Hoagland.
• ROKK Solutions Partner Kristen Hawn and Bluestack Strategies Founder Maura Gillespie.
• American Property Owners Alliance Executive Director Colin Allen.

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Significant changes are in store for President Donald Trump’s signature $3.9 trillion tax-cut bill as the Senate begins closed-door talks this week on legislation that squeaked through the House by a single vote. 

Senate Republican leaders are aiming to make permanent many of the temporary tax cuts in the House bill, a move that would increase the bill’s more than $2.5 trillion deficit impact. But doing so risks alienating fiscal hawks already at war with party moderates over the bill’s safety-net cuts. 

It amounts to a game of chess further complicated by the top Senate rules-keeper, who will decide whether some key provisions violate the chamber’s strict rules. Jettisoning those provisions — which include gun silencer regulations and artificial intelligence policy — could sink the bill in the House.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Republican Congresswoman Lisa McClain of Michigan, Chairwoman of the House Republican Conference.
• S-3 Group Partner Ashley Davis and Iona University Professor Jeanne Sheehan Zaino.
• Stimson Center Senior Fellow Kelly Grieco.

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