Washington Edition

This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Every Monday, Bloomberg Intelligence senior analyst Nathan Dean gives his insights into what’s been happening and what’s coming up in the nooks and crannies of government and markets. Sign up here and follow us at @bpolitics. Email our editors here.

Volatile Territory

I’m a fan of hot sauce. I put it on eggs, pizza, corn, veggies, lots of things. I also apply the phrase hot sauce to equities that have high volatility in response to policy actions. They really spice things up when they’re active and swinging. Last year it was marijuana stocks. This year, it’s solar stocks.

So last Friday I was sitting at my terminal when clients started calling in. Solar stocks were soaring. Some up 10%, others more. Why? Probably for a few reasons but there definitely was anticipation that Senate Finance Committee Republicans – when they release their tax language today – won’t go as far as the House in rolling back tax credits for solar.

Moderation is what we think will happen – here’s our note for terminal subscribers – but pay close attention to the news. Tomorrow could be a big day after investors get a chance to digest where the Senate is heading with its version of President Donald Trump’s “One Big Beautiful Bill.”

Speaking of which, on Wednesday, June 18 at 10:00 a.m., several of my colleagues and I will be hosting a One Big Beautiful Webinar. It’s open to everyone, so bring questions on the GOP tax plans, comments, recommendations whether you’re a Tabasco, Frank’s or Texas Pete’s fan. Just click here to register.

I’m not covering the Israel/Iran conflict, but my friends at Bloomberg News continue to put out amazing work. Here’s Josh Wingrove, Stephanie Lai, Arsalan Shahla and Galit Altstein with Trump Says Iran Wants to Talk After Waves of Israeli Strikes, and Golnar Motevalli and Dina Esfandiary with Iran’s Leaders Face a Reckoning as Israeli Strikes Intensify.

I’ve previously talked about the GENIUS Act, the stablecoin bill that will bring a regulatory framework for companies like Circle. After a 68-30 procedural vote in the Senate on Friday, look for final passage tomorrow. I think the House will just say “we’re good” and pass it as is (link for Bloomberg terminal subscribers).

Tidbits

We’ve all heard about how bears can be found around Washington, but a six-foot alligator showing up at a motel’s door in Fairfax County is a new one. Love how the owner and police officer just escorted it back like they were walking a dog
The G-7 meetings have started in Canada, here’s Bloomberg News’ “Everyone Is Watching Donald Trump: G-7 Leaders Guide” to understand the key players and issues. — Nathan R. Dean

Don’t Miss

The US is refusing to back a proposed Group of Seven statement urging Israel and Iran to deescalate their conflict, underscoring divisions between the Trump administration and the rest of the bloc.

UK Prime Minister Keir Starmer is set to agree with Trump to implement a trade deal announced last month to slash US tariffs on key British exports and raise UK quotas on some American agricultural products.

Trump expressed optimism about settling a trade dispute with Canada at the G7 summit, calling a deal in the coming weeks between the US and its northern neighbor “achievable.”

Federal prosecutors charged suspected gunman Vance Boelter with two counts of murder in the deaths of Minnesota State Representative Melissa Hortman and her husband.

Trump directed federal officials to expand efforts to deport migrants in the largest US cities, even as he’s looking to ease the impact of the crackdown on some industries.

The Trump administration's efforts to curtail foreign students in the US will have an impact on the finances of public universities in some of the states that he won.

Trump's actions against undocumented migrants threaten to shrink the workforce for home health and personal care aides, a job sector that is expected to swell as the US population ages.

The president’s family is getting into the mobile phone business with a Trump-branded service that will rely on pre-existing wireless networks and hardware that is “made in America.”

A federal judge in Massachusetts ruled that the Trump administration’s cuts to scientific research grants for focusing on gender and diversity, equity and inclusion are illegal.

Another federal judge said that Harvard is likely to show that it will suffer irreparable harm if the government is able to stop international students from attending the Ivy League school.

US importers are increasingly being asked by their foreign counterparties to settle transactions in currencies other than the US dollar, such as euros, Chinese renminbi, Mexican pesos, and Canadian dollars.

Watch & Listen

Today on Bloomberg Television’s Balance of Power early edition at 1 p.m., host Joe Mathieu interviewed Ron Dermer, Israel’s minister for strategic affairs, about the conflict with Iran and what comes next.

On the program at 5 p.m., Joe and Julie Fine talk with Republican Representative French Hill about US support for Israel and the House GOP reaction to the Senate’s work on the tax-cut and spending bill.

On the Odd Lots podcast, Bloomberg’s Tracy Alloway and Joe Weisenthal talk with Morgan Stanley housing strategist Jim Egan about the difference in financial strains between people who locked in their housing costs prior to 2021 versus those who didn’t. Listen on iHeart, Apple Podcasts and Spotify.

Chart of the Day

Washington, DC, is among the richest areas of the country with near 5,800 millionaire households in 2023 -- more than San Jose. But unlike some other areas of the country the capital’s millionaire class isn’t gravitating to the rental market. In many other metros there has been more interest in the flexibility and lifestyle amenities offered by high end rental properties among the ultra-wealthy. Overall, New York and San Francisco remain the top spots for affluent tenants, but the data shows some emerging hotspots in Texas and Florida as some choose to bypass homeownership. In Houston the number of millionaire renters increased 25-fold between 2019 and 2023. In the Dallas–Fort Worth metro area, it rose 12-fold. Overall, between 2019 and 2023, the share of millionaires that rent has increased to one in 11 from one in 13 before the pandemic. — Alex Tanzi

What’s Next

The Group of Seven leaders summit in Canada continues through tomorrow.

Retail sales for May will be reported tomorrow.

Industrial production in May also will be released on tomorrow.

Housing starts and building permits in May are released Wednesday.

The Federal Reserve issues its interest rate decision on Wednesday followed by a news conference with Chair Jerome Powell.

Jobless claims for the week ending June 14 will be released Thursday.

Existing home sales in May will be reported June 24.

The Conference Board’s gauge of consumer confidence will be released June 24.

The 90-pause for Trump’s reciprocal tariffs on most counties is scheduled to end on July 8.

Seen Elsewhere