1
00:00:02,480 --> 00:00:06,800
Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

2
00:00:09,840 --> 00:00:11,640
Speaker 2: Good morning, I'm Nathan Hager.

3
00:00:11,560 --> 00:00:14,760
Speaker 1: And I'm Karen Moscow. Here are the stories we're following today.

4
00:00:14,880 --> 00:00:17,520
Speaker 3: Karon, we begin with tensions in the Middle East. US

5
00:00:17,560 --> 00:00:21,560
Speaker 3: officials say Israel has launched a retaliatory strike on Iran,

6
00:00:21,760 --> 00:00:25,360
Speaker 3: less than a week after Tehran's rocket and drone barrage.

7
00:00:25,520 --> 00:00:28,600
Speaker 3: Bloomberg News Middle East Breaking News editor Dana Krasch has

8
00:00:28,600 --> 00:00:30,360
Speaker 3: the latest on what we know so far.

9
00:00:30,720 --> 00:00:33,760
Speaker 4: Reports trickled in in the early hours of the morning

10
00:00:33,800 --> 00:00:37,120
Speaker 4: of a blast over Isfahan, where we know there are

11
00:00:37,200 --> 00:00:40,920
Speaker 4: military sites and nuclear infrastructure, so the blasts are likely

12
00:00:41,000 --> 00:00:44,919
Speaker 4: the result of what Iranian media is saying is defense

13
00:00:45,040 --> 00:00:50,839
Speaker 4: systems activated to intercept what has now we know our drones.

14
00:00:51,120 --> 00:00:53,720
Speaker 4: We also had a report out that the nuclear site

15
00:00:53,760 --> 00:00:56,480
Speaker 4: there is completely safe, and that's of course reassuring, as

16
00:00:56,760 --> 00:01:00,080
Speaker 4: Iran and Israel are arch rivals, but they also have nuclear.

17
00:00:59,760 --> 00:01:04,240
Speaker 3: Pro Bloomberg's Danikrace says Iranian state media are downplaying the attack.

18
00:01:04,319 --> 00:01:07,080
Speaker 3: Reuter's sites in Iranian officials saying there was no missile

19
00:01:07,080 --> 00:01:09,800
Speaker 3: strike and that Iran is not planning a response at

20
00:01:09,800 --> 00:01:10,360
Speaker 3: this time.

21
00:01:10,760 --> 00:01:14,520
Speaker 1: Well, Nathan Markets remain on edge on these Middle East tensions.

22
00:01:14,560 --> 00:01:18,039
Speaker 1: City Group Global Chief Economist Nathan Sheet says investors tend

23
00:01:18,080 --> 00:01:22,080
Speaker 1: to overreact to events initially before settling down.

24
00:01:22,360 --> 00:01:26,840
Speaker 5: I think at the moment, the market's telling us that

25
00:01:26,920 --> 00:01:30,800
Speaker 5: the balance of risks here looks to be reasonably favorable

26
00:01:31,360 --> 00:01:34,600
Speaker 5: and the response in the oil market has been contained,

27
00:01:35,280 --> 00:01:39,800
Speaker 5: And if that's the correct assessment, then I think the

28
00:01:39,800 --> 00:01:43,360
Speaker 5: broader implications of this are it doesn't escalate, and we're

29
00:01:43,400 --> 00:01:48,080
Speaker 5: able to continue on more or less in the status quo.

30
00:01:48,560 --> 00:01:51,600
Speaker 1: City Group Global Chief Economist Nathan Sheets, speaking to us

31
00:01:51,640 --> 00:01:55,000
Speaker 1: earlier on Bloomberg and checking oil right now, NIMEC screwed

32
00:01:55,080 --> 00:01:58,120
Speaker 1: up sixtensive percent at eighty three dollars twenty one cents

33
00:01:58,120 --> 00:02:01,480
Speaker 1: a barrel, while Brent is at eighty seven thirty six cents.

34
00:02:01,400 --> 00:02:03,880
Speaker 3: And caring these tensions could give even more of a

35
00:02:03,920 --> 00:02:07,480
Speaker 3: push to long stalled aid for Israel, Ukraine and Taiwan.

36
00:02:07,720 --> 00:02:11,200
Speaker 3: On Capitol Hill, Bloomberg's Ed Baxter reports that package is

37
00:02:11,280 --> 00:02:12,960
Speaker 3: on track for votes this weekend.

38
00:02:13,360 --> 00:02:15,760
Speaker 6: House Speaker Mike Johnson says he expects to bring up

39
00:02:15,760 --> 00:02:20,680
Speaker 6: split Ukraine, Israel Taiwan aid bills tomorrow. The chair of

40
00:02:20,680 --> 00:02:23,679
Speaker 6: the House Intelligence Committee Mike Turner on Bloomberg's Balance of Power,

41
00:02:23,800 --> 00:02:26,600
Speaker 6: says he thinks it is essential to get aid going

42
00:02:26,639 --> 00:02:27,800
Speaker 6: to Ukraine this week.

43
00:02:27,880 --> 00:02:32,920
Speaker 7: They running out of ammunition. Russia is certainly surging and

44
00:02:32,960 --> 00:02:36,000
Speaker 7: putting additional pressure on the front line, and also the

45
00:02:36,120 --> 00:02:40,080
Speaker 7: lack of US support is impacting morale even in Ukraine.

46
00:02:40,200 --> 00:02:43,320
Speaker 6: House Minority Leader Hakim Jeffrey says Democrats are going to

47
00:02:43,360 --> 00:02:46,959
Speaker 6: do what's necessary to get this across the finish line.

48
00:02:47,040 --> 00:02:50,720
Speaker 6: The Senate looks to move next week. Ad Baxter, Bloomberg Radio.

49
00:02:50,600 --> 00:02:52,760
Speaker 1: All right, ed, thanks now to the latest in a

50
00:02:52,800 --> 00:02:56,200
Speaker 1: criminal case against Donald Trump. The jury has been seated

51
00:02:56,240 --> 00:02:59,280
Speaker 1: in Manhattan and Bloomberg's doing Groscer reports from New.

52
00:02:59,240 --> 00:03:03,560
Speaker 8: York jurors and one alternate juror have been sworn in

53
00:03:03,560 --> 00:03:07,639
Speaker 8: in Trump's hush money trial. The jury of manhattanites includes

54
00:03:07,680 --> 00:03:12,280
Speaker 8: a sales professional, a software engineer, a security engineer, a teacher,

55
00:03:12,400 --> 00:03:16,520
Speaker 8: a speech therapist, an investment banker, a retired wealth manager,

56
00:03:16,600 --> 00:03:19,720
Speaker 8: and several lawyers the trial. Judd says he hopes to

57
00:03:19,760 --> 00:03:24,160
Speaker 8: have jury selection wrapped up today and opening statements on Monday.

58
00:03:24,480 --> 00:03:25,079
Speaker 6: In New York.

59
00:03:25,160 --> 00:03:27,000
Speaker 8: June Grosso Boomberg Radio.

60
00:03:26,880 --> 00:03:27,600
Speaker 9: Okay, June.

61
00:03:27,600 --> 00:03:29,760
Speaker 3: Thank you. Now, we want to turn back to markets.

62
00:03:29,800 --> 00:03:32,359
Speaker 3: We're watching shares of Netflix this morning. They are down

63
00:03:32,400 --> 00:03:35,800
Speaker 3: more than six percent in early trading. Subscriber growth for

64
00:03:35,840 --> 00:03:39,200
Speaker 3: the streaming giant did surpass estimates, but the company says

65
00:03:39,240 --> 00:03:42,880
Speaker 3: those gains will be lower this period. Bloombergs Lucas Shaw

66
00:03:43,040 --> 00:03:45,960
Speaker 3: is in Los Angeles. He says optimism for Netflix's first

67
00:03:46,040 --> 00:03:47,680
Speaker 3: quarter had soared in recent days.

68
00:03:48,080 --> 00:03:50,720
Speaker 10: Expectations for this company were really high. I mean, you

69
00:03:50,800 --> 00:03:53,720
Speaker 10: saw a lot of analysts publishing optimistic notes leading up

70
00:03:53,720 --> 00:03:55,800
Speaker 10: to it. The stock has been on a tear over

71
00:03:55,840 --> 00:03:58,120
Speaker 10: the last few months, and so I think there's almost

72
00:03:58,160 --> 00:03:59,880
Speaker 10: no way that it was going to live up to that.

73
00:04:00,080 --> 00:04:02,520
Speaker 10: You know, you see the results that it basically doubled

74
00:04:02,520 --> 00:04:03,680
Speaker 10: the subscriber estimates.

75
00:04:03,680 --> 00:04:04,520
Speaker 11: That's pretty strong.

76
00:04:04,720 --> 00:04:06,800
Speaker 10: So I'd say one is just expectations and the other

77
00:04:06,960 --> 00:04:09,760
Speaker 10: is maybe that there was some sensitivity around the forecast.

78
00:04:10,040 --> 00:04:12,760
Speaker 10: You know, the revenue forecast is actually pretty strong. It's

79
00:04:12,800 --> 00:04:14,920
Speaker 10: going to grow faster than it did in the first quarter,

80
00:04:15,080 --> 00:04:17,440
Speaker 10: but it's said its subscriber growth would tick down a

81
00:04:17,440 --> 00:04:18,320
Speaker 10: bit in the second quarter.

82
00:04:18,920 --> 00:04:22,320
Speaker 3: Bloomberg's Lucas Shaw says Netflix will stop reporting paid quarterly

83
00:04:22,360 --> 00:04:25,159
Speaker 3: membership and revenue per subscribers starting with the first quarter

84
00:04:25,200 --> 00:04:26,279
Speaker 3: of twenty twenty five.

85
00:04:26,800 --> 00:04:27,279
Speaker 11: Well, Nathan.

86
00:04:27,320 --> 00:04:31,080
Speaker 1: The pushback continues from Fed officials on cutting rates too soon.

87
00:04:31,200 --> 00:04:34,279
Speaker 1: New York Fed President John Williams says economic data will

88
00:04:34,279 --> 00:04:37,279
Speaker 1: determine the timing. He was asked about the possibility of

89
00:04:37,400 --> 00:04:38,120
Speaker 1: raising rates.

90
00:04:38,360 --> 00:04:41,120
Speaker 12: It's not my baseline, my expectation right now. It's you know,

91
00:04:41,200 --> 00:04:44,200
Speaker 12: interest rates are in a good place, and eventually at

92
00:04:44,200 --> 00:04:46,400
Speaker 12: some point would want to lower interest rates as the

93
00:04:46,440 --> 00:04:49,080
Speaker 12: economy really gets to the two percent inflation that we're

94
00:04:49,080 --> 00:04:51,320
Speaker 12: headed towards. If the data are telling us that we

95
00:04:51,360 --> 00:04:54,400
Speaker 12: would need higher interest rates to achieve our goals, then

96
00:04:54,440 --> 00:04:56,040
Speaker 12: we would we would obviously.

97
00:04:55,839 --> 00:04:56,560
Speaker 9: Want to do that.

98
00:04:57,080 --> 00:05:00,080
Speaker 1: New York Fed President John Williams comments, We're echoed by

99
00:05:00,120 --> 00:05:03,560
Speaker 1: other Fed officials. Atlanta FED President Raphael Bostak says he's

100
00:05:03,600 --> 00:05:08,080
Speaker 1: comfortable keeping rates. Study Minneapolis president Neil Kashkari told Fox

101
00:05:08,160 --> 00:05:11,120
Speaker 1: that Fed could keep rates where they are all year.

102
00:05:11,680 --> 00:05:14,280
Speaker 3: Karen, let's turn back to some corporate news now. Paramount

103
00:05:14,279 --> 00:05:16,840
Speaker 3: Global could be getting a new buy outlook from Sony

104
00:05:16,920 --> 00:05:19,240
Speaker 3: and Apollo Global Management. We get more on that from

105
00:05:19,279 --> 00:05:20,479
Speaker 3: Bloomberg's Doug Prisner.

106
00:05:20,680 --> 00:05:22,479
Speaker 13: We're told in the last week, the head of Sony

107
00:05:22,520 --> 00:05:26,200
Speaker 13: Pictures Entertainment, Tony Vince Aquera, held talks with Apollo about

108
00:05:26,240 --> 00:05:28,640
Speaker 13: teaming up on a bid. The New York Times says

109
00:05:28,640 --> 00:05:31,520
Speaker 13: the group would offer cash for shares in Paramount, taking

110
00:05:31,520 --> 00:05:34,599
Speaker 13: the company private through a joint venture. Now Sony and

111
00:05:34,640 --> 00:05:38,560
Speaker 13: Apollo have not submitted an official offer. Paramount is controlled

112
00:05:38,560 --> 00:05:41,960
Speaker 13: by Sherry Redstone through a family business called National Amusements,

113
00:05:42,000 --> 00:05:45,479
Speaker 13: and at present, Paramount is an exclusive merger talks with

114
00:05:45,600 --> 00:05:50,080
Speaker 13: Skydance Media and Independent. Members of Paramount's board are weighing

115
00:05:50,120 --> 00:05:52,960
Speaker 13: the sky Dance proposal. In New York, I'm Doug Prisoner,

116
00:05:52,960 --> 00:05:53,960
Speaker 13: Bloomberg Radio.

117
00:05:53,760 --> 00:05:55,960
Speaker 3: All right, Doug, Thanks, and shares of Paramount Global are

118
00:05:56,040 --> 00:05:58,000
Speaker 3: hired by more than ten and a half percent in

119
00:05:58,040 --> 00:05:59,400
Speaker 3: early trading well.

120
00:05:59,400 --> 00:06:03,680
Speaker 1: Apple has removed some social media services from its Chinese

121
00:06:03,720 --> 00:06:07,840
Speaker 1: app store Nathan, including Metas, WhatsApp and threads thous, in

122
00:06:07,960 --> 00:06:10,880
Speaker 1: response to orders from Beijing to close more loopholes in

123
00:06:10,880 --> 00:06:14,960
Speaker 1: the country's long standing Internet firewall. Apple has consistently complied

124
00:06:14,960 --> 00:06:18,040
Speaker 1: with one of the world's most rigid internet censorship regimes.

125
00:06:18,279 --> 00:06:22,159
Speaker 1: It says the Cyberspace Administration of China order the apps

126
00:06:22,200 --> 00:06:29,159
Speaker 1: removed over national security concerns. And it's time now for

127
00:06:29,160 --> 00:06:30,920
Speaker 1: a look at some of the other stories making news

128
00:06:30,920 --> 00:06:32,479
Speaker 1: in New York and around the world. And for that

129
00:06:32,520 --> 00:06:35,760
Speaker 1: we're joined by Bloomberg's John Tucker. John Good Morning, Good Morning, Karen.

130
00:06:35,800 --> 00:06:38,960
Speaker 14: New York City police have removed a pro Palestinian protest

131
00:06:39,080 --> 00:06:43,320
Speaker 14: encampment at Columbia University, arresting more than one hundred demonstrators

132
00:06:43,360 --> 00:06:46,239
Speaker 14: in the process. Mayor Adams says the city was asked

133
00:06:46,240 --> 00:06:49,320
Speaker 14: in writing by university officials to remove the encampment.

134
00:06:49,760 --> 00:06:54,279
Speaker 15: Klun University's students have a proud history of protests in

135
00:06:54,400 --> 00:06:57,239
Speaker 15: raising their voices. Students have a right to free speech,

136
00:06:57,720 --> 00:07:00,280
Speaker 15: but do not have a right to violate Universe city

137
00:07:00,360 --> 00:07:03,279
Speaker 15: policies and disrupt learning on campus.

138
00:07:03,360 --> 00:07:06,919
Speaker 14: The students have been protesting since early Wednesday opposing Israeli

139
00:07:06,960 --> 00:07:11,000
Speaker 14: military action in Ganza. The Biden administration today finalizing a

140
00:07:11,040 --> 00:07:14,600
Speaker 14: plant to prevent oil development across more than half the

141
00:07:14,720 --> 00:07:18,840
Speaker 14: US government's Mammoth Petroleum Reserve in Alaska. The story from

142
00:07:18,960 --> 00:07:20,680
Speaker 14: Washington and Bloomberg Steve Hotisk.

143
00:07:20,960 --> 00:07:23,720
Speaker 16: This move is among a string of actions by President

144
00:07:23,760 --> 00:07:27,240
Speaker 16: Biden to kurktailed development on federal lands and wall off

145
00:07:27,280 --> 00:07:30,520
Speaker 16: more than forty one million acres for conservation. It comes

146
00:07:30,520 --> 00:07:33,720
Speaker 16: as Biden seeks to gain support from young climate minded

147
00:07:33,800 --> 00:07:38,200
Speaker 16: voters after disappointing some last year by authorizing Conneco Phillips

148
00:07:38,200 --> 00:07:42,040
Speaker 16: massive Willow oil project. The administration is also moving to

149
00:07:42,080 --> 00:07:45,320
Speaker 16: block road construction essential to opening a copper mine in

150
00:07:45,360 --> 00:07:49,080
Speaker 16: the state. The moves have drawn condemnation from oil, gas

151
00:07:49,080 --> 00:07:52,520
Speaker 16: and mining interests, who said the Biden administration is locking

152
00:07:52,640 --> 00:07:56,680
Speaker 16: up resources essential for fueling America's energy needs today and

153
00:07:56,720 --> 00:07:59,960
Speaker 16: in the future. That includes, they say, critical minerals for

154
00:08:00,120 --> 00:08:05,000
Speaker 16: batteries and other technology in Washington. Steve Potisk Bloomberg.

155
00:08:04,560 --> 00:08:07,520
Speaker 14: Radio Ukraine says at least to eight civilians were killed

156
00:08:07,560 --> 00:08:10,119
Speaker 14: more than twenty injured in a strike in the country

157
00:08:10,200 --> 00:08:14,400
Speaker 14: today after Russia launched another barrage, straining the country's dwindling

158
00:08:14,440 --> 00:08:17,920
Speaker 14: air defenses, and San Francisco is the latest US city

159
00:08:17,960 --> 00:08:21,040
Speaker 14: preparing to receive a pair of pandas from China in

160
00:08:21,120 --> 00:08:25,320
Speaker 14: a continuation of Beijing's famed panda diplomacy. San Francisco mayor

161
00:08:25,360 --> 00:08:29,120
Speaker 14: London Breed announcing the pandalona in Beijing this morning global

162
00:08:29,160 --> 00:08:31,080
Speaker 14: news twenty four hours a day, whenever you want it

163
00:08:31,160 --> 00:08:34,560
Speaker 14: with Bloomberg News Now. I'm John Tucker. This is Bloomberg,

164
00:08:34,640 --> 00:08:35,319
Speaker 14: Karen and Nathan.

165
00:08:35,600 --> 00:08:42,240
Speaker 1: All right, John, thank you, and it's time now for

166
00:08:42,280 --> 00:08:44,760
Speaker 1: the Bloomberg Sports Update with Dan Schwartzman.

167
00:08:44,840 --> 00:08:47,679
Speaker 17: Dan, good morning, Good morning, Karen and Nathan. The final

168
00:08:47,720 --> 00:08:50,559
Speaker 17: two NBA playing games are coming up tonight Chicago. He's

169
00:08:50,640 --> 00:08:52,559
Speaker 17: on the road of the Miami Heat tip off his

170
00:08:52,640 --> 00:08:55,120
Speaker 17: seven o'clock PM. Winner of that will face the Boston

171
00:08:55,160 --> 00:08:58,319
Speaker 17: Celtics in Game one on Sunday. Then later on it's

172
00:08:58,360 --> 00:09:01,240
Speaker 17: the Sacramento Kings at the New Orleans Pelicans. The winner

173
00:09:01,240 --> 00:09:03,160
Speaker 17: of that one will go as the eighth seed in

174
00:09:03,200 --> 00:09:06,800
Speaker 17: the Western Conference at faci Oklahmoma City Thunder also on Sunday.

175
00:09:07,040 --> 00:09:09,559
Speaker 17: The New York Knicks get underway on Saturday as they're

176
00:09:09,600 --> 00:09:12,240
Speaker 17: home for the Philadelphia seventy six Ers in game one

177
00:09:12,360 --> 00:09:15,400
Speaker 17: of their Round one matchup. Sixers head coach Nick Nurse

178
00:09:15,440 --> 00:09:17,280
Speaker 17: talking about the Knicks, I think.

179
00:09:17,120 --> 00:09:19,440
Speaker 18: They're for real. I think they're really good. I think

180
00:09:19,440 --> 00:09:22,520
Speaker 18: they're they're fast. I think they can shoot. I think

181
00:09:22,559 --> 00:09:25,320
Speaker 18: they hit the glass. I think they guard you. I

182
00:09:25,320 --> 00:09:28,880
Speaker 18: think they've earned that seed. They've played really well and

183
00:09:28,920 --> 00:09:31,560
Speaker 18: beaten a lot of good teams, so we'll have our

184
00:09:31,600 --> 00:09:33,360
Speaker 18: work to do here in the next couple of days

185
00:09:33,360 --> 00:09:34,120
Speaker 18: to get ready for him.

186
00:09:34,200 --> 00:09:37,640
Speaker 17: That's courtesy of CBS three in Philadelphia. Light schedule in

187
00:09:37,679 --> 00:09:40,480
Speaker 17: Major League Baseball last night, the Yankees were off the

188
00:09:40,559 --> 00:09:43,079
Speaker 17: Giants shutting out the Diamondbacks five nothing at home. It

189
00:09:43,200 --> 00:09:45,599
Speaker 17: was Red Sox losing a family Park to the Guardians

190
00:09:45,840 --> 00:09:48,560
Speaker 17: five to four. Coming up tonight, the Yankees open up

191
00:09:48,559 --> 00:09:50,680
Speaker 17: a weekend series in the Bronx as they host the

192
00:09:50,679 --> 00:09:53,400
Speaker 17: Tampa Bay Rays. That men's opening up the series on

193
00:09:53,440 --> 00:09:56,160
Speaker 17: the road in Los Angeles. Giants are home again for

194
00:09:56,200 --> 00:09:58,679
Speaker 17: the Diamondbacks. The Red Sox are on the road at

195
00:09:58,720 --> 00:10:01,680
Speaker 17: the Pirates. It's the National hosting the Houston Astros, while

196
00:10:01,679 --> 00:10:03,920
Speaker 17: it's the Baltimore Orioles. They are on the road at

197
00:10:03,920 --> 00:10:07,880
Speaker 17: the Kansas City Royals. The NHL Playoffs gets underway on Saturday,

198
00:10:08,120 --> 00:10:11,160
Speaker 17: as the Islanders open Round one on the road at Carolina.

199
00:10:11,520 --> 00:10:14,640
Speaker 17: It's the Boston Bruins their home for Toronto also on Saturday,

200
00:10:14,800 --> 00:10:17,199
Speaker 17: while the New York Rangers, the winners of the President's

201
00:10:17,200 --> 00:10:19,720
Speaker 17: Cup with the best record in the NHL, they open

202
00:10:19,800 --> 00:10:23,200
Speaker 17: up their series versus the Washington Capitals on Sunday at

203
00:10:23,240 --> 00:10:26,920
Speaker 17: Madison Square Garden. Rangers captain Jacob Truba assessing his team.

204
00:10:27,120 --> 00:10:30,360
Speaker 19: Great lineup, great goaltenders front to back. I think we've

205
00:10:30,400 --> 00:10:32,680
Speaker 19: got a deep lineup and just continue to play our game,

206
00:10:32,720 --> 00:10:36,040
Speaker 19: and we've been good at bouncing back with adversity. There's

207
00:10:36,040 --> 00:10:38,440
Speaker 19: going to be at versity as any times we're momentum swings.

208
00:10:38,480 --> 00:10:39,800
Speaker 19: That's the playoffs.

209
00:10:39,880 --> 00:10:43,559
Speaker 17: That's courtesy of Rangers dot Com. That's your Bloomberg Sports Update.

210
00:10:43,760 --> 00:10:45,600
Speaker 17: I'm Dan Schwarzman, Karen and Nathan.

211
00:10:45,880 --> 00:10:48,480
Speaker 1: All Right, Dan, thank you. SMP futures down half percent

212
00:10:48,559 --> 00:10:50,839
Speaker 1: or twenty five points down, futures down four tenths of

213
00:10:51,040 --> 00:10:53,800
Speaker 1: percent or one hundred and fifty seven points. Nasdaq futures

214
00:10:53,840 --> 00:10:56,160
Speaker 1: down three quarters of a percent or one hundred and

215
00:10:56,160 --> 00:10:58,679
Speaker 1: thirty points. In the ten year Treasury yeled four point

216
00:10:58,679 --> 00:10:59,640
Speaker 1: five eight percent.

217
00:11:01,960 --> 00:11:06,000
Speaker 9: Coast to coast on Bloomberg Radio nationwide on Sirius XM,

218
00:11:06,200 --> 00:11:09,080
Speaker 9: and around the world on Bloomberg dot Com and the

219
00:11:09,120 --> 00:11:14,079
Speaker 9: Bloomberg Business app. This is Bloomberg Daybreak. Good morning. I'm

220
00:11:14,120 --> 00:11:14,760
Speaker 9: Nathan Hager.

221
00:11:14,800 --> 00:11:17,480
Speaker 3: Middle East tensions are once again in the foreground with

222
00:11:17,640 --> 00:11:22,360
Speaker 3: US officials saying Israel has launched a retaliatory strike against Iran,

223
00:11:22,520 --> 00:11:25,559
Speaker 3: less than a week after Tehran's barrage of missiles and

224
00:11:25,640 --> 00:11:29,400
Speaker 3: drones into Israeli territory. For the very latest, we are

225
00:11:29,480 --> 00:11:33,640
Speaker 3: joined now by Bloomberg's Europe, Middle East, and Africa news

226
00:11:33,640 --> 00:11:37,360
Speaker 3: director Rosalind Matheson Roz, Good morning. Can you get us

227
00:11:37,440 --> 00:11:39,680
Speaker 3: up to speed on what we know at this point

228
00:11:39,760 --> 00:11:41,080
Speaker 3: about this reported strike?

229
00:11:42,920 --> 00:11:44,439
Speaker 20: Well, as you were saying, what we know is that

230
00:11:44,559 --> 00:11:48,200
Speaker 20: US officials tell us that we did have this retaliatory

231
00:11:48,280 --> 00:11:53,040
Speaker 20: strike where Israel has launched missiles against Iran. Local media

232
00:11:53,080 --> 00:11:55,679
Speaker 20: reports say they were missiles that were five potentially from

233
00:11:55,720 --> 00:11:59,160
Speaker 20: Israeli planes. These were larger areas in Iran, in the

234
00:11:59,160 --> 00:12:02,360
Speaker 20: west and central of Iran. It's a town called a

235
00:12:02,400 --> 00:12:07,319
Speaker 20: city called Isfahan that's located in a ring of air bases,

236
00:12:07,360 --> 00:12:11,280
Speaker 20: military bases, but also some key nuclear facilities for Iran.

237
00:12:12,080 --> 00:12:14,760
Speaker 20: It seems like the nuclear facilities were not targeted, were

238
00:12:14,800 --> 00:12:18,000
Speaker 20: not hit, and are functioning as normal. But what may

239
00:12:18,040 --> 00:12:21,000
Speaker 20: have been targeted was an airbase in the region, and

240
00:12:21,040 --> 00:12:24,280
Speaker 20: that would obviously be about sending that message in responses

241
00:12:24,360 --> 00:12:28,840
Speaker 20: you say to Iran striking Israel about a week ago

242
00:12:29,000 --> 00:12:32,240
Speaker 20: for the first time from Iranian soil, and so we've

243
00:12:32,320 --> 00:12:35,800
Speaker 20: kind of entered this era of tip for tat retaliation

244
00:12:35,920 --> 00:12:39,880
Speaker 20: reprisals against each other. Both of these actions do seem, however,

245
00:12:39,960 --> 00:12:45,240
Speaker 20: to be somewhat calibrated. They didn't target civilian populations and

246
00:12:45,280 --> 00:12:48,440
Speaker 20: they have not targeted, in this case, Iranian's nuclear facilities.

247
00:12:48,480 --> 00:12:50,880
Speaker 20: So the question is is this enough to keep this

248
00:12:50,960 --> 00:12:53,719
Speaker 20: conflict from simmering over Do they both look at each

249
00:12:53,720 --> 00:12:56,040
Speaker 20: other and say this is not enough to set off

250
00:12:56,120 --> 00:12:58,720
Speaker 20: the regional conflict that markets and others have been fearing

251
00:12:58,800 --> 00:13:00,800
Speaker 20: might happen point rise.

252
00:13:00,840 --> 00:13:03,520
Speaker 3: As you mentioned, Israeli media are saying this was a

253
00:13:03,520 --> 00:13:06,640
Speaker 3: missile strike. We're hearing reports from Iranian state media that

254
00:13:06,640 --> 00:13:09,600
Speaker 3: they're calling it a drone attack and that the explosions

255
00:13:09,679 --> 00:13:13,800
Speaker 3: over the third largest city in Iran, Isfahan, were caused

256
00:13:13,880 --> 00:13:17,079
Speaker 3: by Iran's air defenses. What does that say about how

257
00:13:17,120 --> 00:13:21,240
Speaker 3: this could potentially reduce tensions going forward.

258
00:13:22,600 --> 00:13:25,199
Speaker 20: Well, it's interesting you say, Iran seems quite keen, and

259
00:13:25,240 --> 00:13:27,920
Speaker 20: there's a bit of heaterd rhetoric coming from Iran immediately,

260
00:13:27,960 --> 00:13:30,880
Speaker 20: as you can imagine, but also the sense that they

261
00:13:30,960 --> 00:13:32,120
Speaker 20: don't want to overplay this.

262
00:13:32,240 --> 00:13:34,880
Speaker 11: There's certainly in a way downplaying it on their state media.

263
00:13:34,960 --> 00:13:38,880
Speaker 20: On their broadcasting this morning, they're showing footage of Isfahan,

264
00:13:39,200 --> 00:13:42,360
Speaker 20: of their nuclear site, looking business very much as usual,

265
00:13:42,400 --> 00:13:45,240
Speaker 20: traffic moving along and so such, and they're saying there

266
00:13:45,280 --> 00:13:48,520
Speaker 20: was some drone action, but their air defenses were activated,

267
00:13:48,640 --> 00:13:52,679
Speaker 20: whereas Israeli media say this was actually a missile strike

268
00:13:53,360 --> 00:13:54,040
Speaker 20: from Israel.

269
00:13:54,280 --> 00:13:55,640
Speaker 11: But it does point to that thing.

270
00:13:55,679 --> 00:13:58,960
Speaker 20: As you say, even though we've got strong posturing from

271
00:13:59,040 --> 00:14:02,480
Speaker 20: Israel and Iran all of this, and we've got Iran's

272
00:14:02,480 --> 00:14:06,720
Speaker 20: proxies activated in the region and Israel is basically fighting

273
00:14:06,720 --> 00:14:09,840
Speaker 20: those proxies as well, that everyone knows if this does

274
00:14:10,120 --> 00:14:12,760
Speaker 20: bill into a full bare regional conflict that pulls in

275
00:14:13,120 --> 00:14:15,760
Speaker 20: potentially other actors, potentially the US.

276
00:14:15,920 --> 00:14:17,520
Speaker 11: You know, real impact on things.

277
00:14:17,400 --> 00:14:20,480
Speaker 20: Are all supplied globally that we're kind of moving into

278
00:14:20,520 --> 00:14:23,240
Speaker 20: unprecedented territory then, and even Iran knows that that would

279
00:14:23,240 --> 00:14:23,960
Speaker 20: be self defeating.

280
00:14:24,720 --> 00:14:27,400
Speaker 3: And when we have Iran sort of downplaying this and

281
00:14:27,560 --> 00:14:31,480
Speaker 3: reports from some hawkish officials in Israel, like the National

282
00:14:31,480 --> 00:14:35,080
Speaker 3: Security Minister going on x and describing the attack as weak,

283
00:14:35,800 --> 00:14:38,200
Speaker 3: what does that say about how Israel could go forward

284
00:14:38,240 --> 00:14:40,560
Speaker 3: with this, Well, there is.

285
00:14:40,520 --> 00:14:43,200
Speaker 11: That difficulty, and domestically in Israel.

286
00:14:43,200 --> 00:14:47,360
Speaker 20: I mean the Israeli Prime Minister Bena, who basically made

287
00:14:47,360 --> 00:14:50,040
Speaker 20: a bet, he tied his fortunes to the far right

288
00:14:50,480 --> 00:14:52,760
Speaker 20: in Israel to stay in office, and now he's having

289
00:14:52,800 --> 00:14:55,680
Speaker 20: to deal with the implications of that. And even you know,

290
00:14:55,800 --> 00:14:58,680
Speaker 20: in his war Cabinet, in his ministry, he's got those

291
00:14:58,720 --> 00:15:02,160
Speaker 20: elements who are pushing him, pushing him to take further action,

292
00:15:02,280 --> 00:15:04,840
Speaker 20: but they're also saying, you need to keep your focus

293
00:15:04,880 --> 00:15:06,840
Speaker 20: on the main thing here for Israel, which for them

294
00:15:06,960 --> 00:15:10,480
Speaker 20: is still the conflict in Gaza, the conflict against Tamas

295
00:15:10,520 --> 00:15:13,920
Speaker 20: and Gaza, and also fending off Hasbalah from the north

296
00:15:13,920 --> 00:15:14,480
Speaker 20: in Lebanon.

297
00:15:14,520 --> 00:15:17,440
Speaker 11: Europe. Being too many fronts here it becomes difficult.

298
00:15:17,880 --> 00:15:20,200
Speaker 20: And some of those voices you know that we're hearing

299
00:15:20,200 --> 00:15:22,760
Speaker 20: this morning, saying that whatever Israel did was weak, that

300
00:15:22,880 --> 00:15:25,560
Speaker 20: needs to be more. They aren't actually in the war cabinet,

301
00:15:25,600 --> 00:15:28,200
Speaker 20: so they're not they're making the military decisions, but they

302
00:15:28,240 --> 00:15:31,080
Speaker 20: are pushing him from the sidelines. The question is, you've

303
00:15:31,080 --> 00:15:33,680
Speaker 20: also at the US and others urging restraints. So all

304
00:15:33,680 --> 00:15:37,000
Speaker 20: these competing factors going on for Benjamin Netnyahu.

305
00:15:37,040 --> 00:15:38,880
Speaker 11: But again there seems to be a lot of messaging

306
00:15:38,920 --> 00:15:39,640
Speaker 11: this morning on is.

307
00:15:39,640 --> 00:15:43,280
Speaker 20: Rerad ATV about the need to keep focused on Israel's

308
00:15:43,280 --> 00:15:45,600
Speaker 20: goals when it comes to its war in Gaza, and.

309
00:15:45,720 --> 00:15:48,720
Speaker 3: Just thirty seconds left, where does this leave the war

310
00:15:48,800 --> 00:15:49,680
Speaker 3: in Gaza now?

311
00:15:51,240 --> 00:15:54,080
Speaker 20: Well, Israel insists very much still its attention is to

312
00:15:54,280 --> 00:15:57,000
Speaker 20: mount that offensive inside Raphae in the south. That's where

313
00:15:57,000 --> 00:16:00,160
Speaker 20: we've got a lot of Palestinian civilians clustered, and it's

314
00:16:00,160 --> 00:16:01,800
Speaker 20: going to happen sooner.

315
00:16:01,600 --> 00:16:02,200
Speaker 11: Rather than later.

316
00:16:02,280 --> 00:16:05,440
Speaker 20: We'd obviously get telegraphed because Israel have to encourage people

317
00:16:05,440 --> 00:16:07,440
Speaker 20: and move them out of the way to do so.

318
00:16:07,600 --> 00:16:10,560
Speaker 20: But certainly there's no sense from Israel that they're being

319
00:16:10,600 --> 00:16:12,040
Speaker 20: deterred in that goal.

320
00:16:12,160 --> 00:16:13,640
Speaker 11: So that's probably the next thing to look for.

321
00:16:13,680 --> 00:16:16,280
Speaker 20: At some point, do we see that offensive beginning rougher

322
00:16:16,400 --> 00:16:17,560
Speaker 20: in the south New Egypt.

323
00:16:17,920 --> 00:16:21,000
Speaker 2: This is Bloomberg Daybreak Today, your morning brief on the

324
00:16:21,040 --> 00:16:24,440
Speaker 2: stories making news from Wall Street to Washington and beyond.

325
00:16:24,720 --> 00:16:27,520
Speaker 1: Look for us on your podcast feed at six am

326
00:16:27,600 --> 00:16:31,240
Speaker 1: Eastern each morning on Apple, Spotify, and anywhere else you

327
00:16:31,320 --> 00:16:32,480
Speaker 1: get your podcasts.

328
00:16:32,600 --> 00:16:35,280
Speaker 2: You can also listen live each morning starting at five

329
00:16:35,360 --> 00:16:37,920
Speaker 2: Am Wall Street Time on Bloomberg eleven three to zero

330
00:16:38,000 --> 00:16:40,800
Speaker 2: in New York, Bloomberg ninety nine to one in Washington,

331
00:16:40,960 --> 00:16:43,800
Speaker 2: Bloomberg one oh six to one in Boston, and Bloomberg

332
00:16:43,880 --> 00:16:45,560
Speaker 2: ninety sixty in San Francisco.

333
00:16:45,960 --> 00:16:49,120
Speaker 1: Our flagship New York station is also available on your

334
00:16:49,160 --> 00:16:54,520
Speaker 1: Amazon Election devices. Just say Alexa play Bloomberg eleven thirty plus.

335
00:16:54,640 --> 00:16:58,040
Speaker 2: Listen coast to coast on the Bloomberg Business app, Sirius XM,

336
00:16:58,160 --> 00:17:01,760
Speaker 2: the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan

337
00:17:01,760 --> 00:17:03,360
Speaker 2: Hager and I'm Karen Moscow.

338
00:17:03,560 --> 00:17:06,320
Speaker 1: Join us again tomorrow morning for all the news you

339
00:17:06,440 --> 00:17:09,640
Speaker 1: need to start your day right here on Bloomberg Daybreak