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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today. Karen, we begin with

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Speaker 2: the latest developments in the Middle East. The US has

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Speaker 2: struck Iran for a fifth straight day and hit a

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Speaker 2: sanctioned oil tanker near the country's main export terminal. Iran

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Speaker 2: responded to the US barrage by firing on American bases

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Speaker 2: in Kuwait and Jordan. We get more from Bloomberg Middle

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Speaker 2: East Managing editor Owner Aunt.

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Speaker 3: We saw further strikes by the US on various missile

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Speaker 3: storage and missile launch sites, control and command centers again

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Speaker 3: along Urans southern coast. Islamic Republic responded as expected. There

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Speaker 3: have been retaliatory attacks, especially on our states in the

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Speaker 3: Persian Gulf. So this basically takes up the escalation one

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Speaker 3: step further. We are seeing the continuation of a series

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Speaker 3: test facing. Well, there's no ceasfire really left anymore, but

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Speaker 3: the interim agreement has all but collapsed. Yeah, the latest

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Speaker 3: strikes are just a continuation of this serious test facing

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Speaker 3: the intermagreement.

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Speaker 4: Blom Bloomberg's on Around says the US and Iran have

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Speaker 4: accused each other of breaching the terms of the memorandum

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Speaker 4: of understanding.

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Speaker 2: Nathan, we have a warning from the head of the

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Speaker 2: International Energy Agency. Executive director of FANTI Ral says the

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Speaker 2: global economy faces a renewed challenge if the conflict that's

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Speaker 2: choked the straight up for horm moves is not resolved

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Speaker 2: in a matter of weeks. Birell spoke with the Bloomberg's

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Speaker 2: David Gura at the Aspen Security Forum in Colorado.

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Speaker 5: Big uncertainty and the markets are nervous whether or not

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Speaker 5: that will be soon and lasting solution to the problem.

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Speaker 5: And at the same time, many countries are taking some

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Speaker 5: measures to avoid diverse case scenario.

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Speaker 2: And that was International Energy Agency Executive Director of FANTI Viral,

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Speaker 2: speaking with Bloomberg's David Gura at the Aspen Security Forum,

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Speaker 2: added that the conflict must be resolved in a matter

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Speaker 2: of weeks to limit impact on the global economy.

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Speaker 4: In Washington, Careen, a couple of key Trump nominees faced

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Speaker 4: questions in confirmation hearings. Acting Attorney General Todd blanche faced

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Speaker 4: criticism over a deal giving President Trump and his allies

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Speaker 4: immunity from past tax audits. Bloomberg's Amy Morris reports from Washington.

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Speaker 6: Blanch says the fund created by President Trump's lawsuit against

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Speaker 6: the IRS has been canceled, but Republican Senator John Cornyn

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Speaker 6: raised concerns that it could be revived.

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Speaker 7: President of the United States has not agreed in writing

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Speaker 7: to delete the weaponization fund, and there's no guarantee that

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Speaker 7: he might raise that issue by way of a lawsuit

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Speaker 7: in the future.

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Speaker 8: There's no fund. I suppose they could bring a lawsuit.

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Speaker 6: Senators also questioned whether Blanch can operate independently from Trump

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Speaker 6: given his past work as Trump's personal lawyer. Blanch will

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Speaker 6: need the support of all Republicans on the Judiciary Committee

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Speaker 6: to advance his nomination. In Washington. Amy Morris Bloomberg Radio.

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Speaker 2: Thank you Well. President Trump's nominee to lead the US

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Speaker 2: Intelligence community also appeared on the Hill for his confirmation hearing.

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Speaker 2: Jake Clayton repeatedly sidestep questions from Democrats. A mother Joe

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Speaker 2: Biden won the twenty twenty election. He had this exchange

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Speaker 2: with the top Democrat on the Senate Intelligence Committee, Mark Warner.

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Speaker 9: So let me just ask you. It should be a

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Speaker 9: simple question.

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Speaker 2: Do you deny that Joe Biden won the twenty twenty.

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Speaker 6: Election Senator, I'm not an election.

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Speaker 10: Tonight, Joe Biden was certified as the President of the

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Speaker 10: United States.

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Speaker 2: Jake Clayton was also pressed about his current role as

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Speaker 2: Manhattan's top of federal prosecutor and his offices moved to

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Speaker 2: subpoena New York Times journalists for reporting on security shortcomings

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Speaker 2: on President Trump's new air Force one from cutter Well

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Speaker 2: Security Investigation.

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Speaker 1: I'm happy to talk to you and this committee about

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Speaker 1: our approach to the First Amendment.

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Speaker 2: Jake Clayton's timeline for a full Senate confirmation vote is

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Speaker 2: still unclear about. Democrats have voiced urgent see about replacing

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Speaker 2: the current Acting Director of National Intelligence, Bill Poulty. President

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Speaker 2: Trump appointed him to succeed Tolci Gabbard as DNI last month,

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Speaker 2: despite a lack of national security experience in karent election.

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Speaker 4: Security is expected to be a key topic when President

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Speaker 4: Trump delivers a primetime address to the nation tonight. The

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Speaker 4: President said as much to reporters in the Oval Office.

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Speaker 7: Our country has to shape up. But this is what

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Speaker 7: we're going to be talking about Thursday, is.

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Speaker 11: It doesn't get bigger because without free and fair elections,

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Speaker 11: you don't have a country.

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Speaker 7: We'll be discussing other things too.

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Speaker 4: The White House hasn't said what those other things might be,

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Speaker 4: but the president's last address to the nation was in

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Speaker 4: April on the Iran war. Tonight's speech is scheduled for

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Speaker 4: nine pm Wall Street Time. You can listen on Bloomberg

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Speaker 4: Radio or watch on Bloomberg Television or the Bloomberg Business app.

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Speaker 2: Nathan Let's turn to geopolitics and trade. US Trade Representative

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Speaker 2: Jamison Greer signaled modest expectations for this summit between President

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Speaker 2: Trump and his Chinese counterpart, she paying in September. He says,

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Speaker 2: the meeting, we'll focus on assessing current commitments by the

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Speaker 2: two sides.

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Speaker 1: The number one deliverable we always have between President Trump

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Speaker 1: and President She is to continue the stability of the relationship.

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Speaker 1: Both of these leaders are very committed to having a

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Speaker 1: strong and solid personal relationship. Now that doesn't mean we

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Speaker 1: don't have issues in the broader relationship. Obviously we do.

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Speaker 1: China is a big challenge for the US in a

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Speaker 1: lot of ways, but we want to make sure we're

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Speaker 1: delivering stability.

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Speaker 2: US Trade Representative Jamison Greer ads at the US We'll

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Speaker 2: look to bridge gaps in China's compliance with trade agreements,

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Speaker 2: including on China's commitment to delay Rare Earth's restrictions. Greer

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Speaker 2: made the comments to Bloomberg's David Gura. Catch the entire

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Speaker 2: interview in all of our coverage of the Aspen Security Forum,

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Speaker 2: on the Bloomberg Video Hub, at Bloomberg dot com, and

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Speaker 2: on the Bloomberg Business App.

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Speaker 4: I'm back on Capitol Hillcaren fed Shair Kevin Warsh wrapped

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Speaker 4: up two days of congressional testimony answering questions from the

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Speaker 4: Senate Banking Committee. Walsh was asked about possible potential interface

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Speaker 4: pearance from President Trump.

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Speaker 11: President has not before I took this office, before I

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Speaker 11: raised my right hand, he has not tried to influence

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Speaker 11: the conduct of monetary policy, and if he tried to,

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Speaker 11: I would continue to keep my head down and do

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Speaker 11: the job. I known him a long record, but I've

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Speaker 11: got a seven week record, and before that, I had

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Speaker 11: a twenty five year record, and I think that should

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Speaker 11: count for something.

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Speaker 4: Man Hours after those comments from Chair Walsh, President Trump

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Speaker 4: reiterated his view on interest rates, telling Fox Quote, I'd

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Speaker 4: like to see them go down.

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Speaker 2: Let's turn to the markets Nathan, where ship stocks will

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Speaker 2: be in focus again, this after Taiwan Semiconductor Manufacturing raised

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Speaker 2: its spending in revenue projections for the year. The main

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Speaker 2: ship maker for in Nvidia, now expects capital expenditure of

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Speaker 2: as much as sixty four billion dollars in twenty twenty six.

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Speaker 2: It's also projecting revenue growth of slightly above forty percent,

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Speaker 2: significantly higher from the more than thirty percent it had predicted.

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Speaker 4: And speaking of Nvidia, care in Japan is planning to

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Speaker 4: buy more than twenty seven thousand of the chip maker's

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Speaker 4: next generation Cuban chips from the world's most valuable company

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Speaker 4: to build a home grown foundational AI model for robots.

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Speaker 4: The initiative is part of a series of efforts by

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Speaker 4: the Japanese government to lower its reliance on foreign technology

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Speaker 4: and bolster national security.

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Speaker 6: Nathan.

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Speaker 2: South Korea will temporarily halt new listings of single stock

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Speaker 2: leveraged exchange traded products to curb market volatility. The move

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Speaker 2: follows a surge and popularity of funds tied to Samsung

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Speaker 2: Electronics and sk Heinis. More than a dozen leveraged ETFs

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Speaker 2: launched two months ago, which aimed to deliver twice the

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Speaker 2: daily return of Samsung and sk Heinex, and it has

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Speaker 2: been blamed by market participants for exacerbating price wings.

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Speaker 4: Well sticking with AI Karen, JP Morgan, Chase CEO Jamie

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Speaker 4: Diamonds warning against broad access to anthropics mythos model. Speaking

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Speaker 4: at the Pennsylvania Defense and Innovation Summit, Diamond said, the

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Speaker 4: powerful technology raises serious risks.

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Speaker 12: Bethos, That's a real issue, which I know our government

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Speaker 12: is on top of. This point is not to stop

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Speaker 12: you know, small banks and gainer. It's really just to

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Speaker 12: make sure we roll out the stuff that we know

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Speaker 12: is being controlled. Because this you're giving ballistic missiles to

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Speaker 12: individuals with meethos basically.

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Speaker 4: And JP Morgan CEO Jamie Diamond noted his bank is

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Speaker 4: among a group of companies that have been testing Mythos.

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Speaker 2: Since April, Nathan, SpaceX shares have come back to earth,

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Speaker 2: they fall into their lowest level since the company went public.

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Speaker 2: Shares briefly fell below their initial public offering price. SpaceX

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Speaker 2: surgeon only fifty percent over its first three days of trading,

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Speaker 2: only to lose nearly a quarter of their value over

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Speaker 2: the next three sessions.

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Speaker 4: And in deal News Karen Uber has agreed to buy

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Speaker 4: German food delivery company Delivery Hero for fourteen point eight

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Speaker 4: billion dollars. The food delivery market, which had boomed during

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Speaker 4: the COVID pandemic, has been rapidly consolidating in recent years.

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Speaker 4: The Right hailing company has been making acquisitions overseas to

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Speaker 4: strengthen its position internationally.

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Speaker 2: Time now for look at some of the other stories

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Speaker 2: making news in New York and around the world, and

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Speaker 2: for that rejoined by Bloomberg's Michael Barr.

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Speaker 8: Michael, good morning, Good morning Karen. The heat will continue

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Speaker 8: in the Northeast today, but even more troublesome is the

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Speaker 8: air quality. With more Here's Bloomberg Midaula, just Craig Allen.

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Speaker 13: The sky had that orange color again yesterday, right, and

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Speaker 13: it could be worse today. So far, the smoke from

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Speaker 13: wildfires in Ontario Province have been mostly aloft, but it

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Speaker 13: is likely to be more at ground level today, with

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Speaker 13: an AQI of one hundred to one fifty in Washington

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Speaker 13: and Boston, but as unhealthy as one fifty to two

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Speaker 13: hundred from Philadelphia up to New York City. Air quality

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Speaker 13: alerts for ozone and fine particulars will be in effect

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Speaker 13: most of the day today.

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Speaker 8: Bloomberg medairelogist Craig Allen. The Department of Homeland Security abandoned

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Speaker 8: a decision to halt most immigration traffic stops after President

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Speaker 8: Donald Trump demanded that the tactic continue. The decision to

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Speaker 8: resume traffic stops was made after a fatal shooting of

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Speaker 8: a Columbian man during an enforcement operation in Maine, which

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Speaker 8: led to a brief suspect of most vehicle stops except

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Speaker 8: in serious criminal cases. Meanwhile, Main Republican Senator Susan Collins

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Speaker 8: backs a temporary halt to routine ICE traffic stops.

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Speaker 14: The entire Main delegation has says for a thorough, full

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Speaker 14: and impartial investigation to be conducted by the Independent Office

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Speaker 14: of the Inspector General.

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Speaker 8: The shooting in Maine was less than one week after

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Speaker 8: an ICE agent in Houston, Texas, shot in killed man

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Speaker 8: and a traffic stop during a deportation crackdown. More on

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Speaker 8: the story we heard just earlier. The New York Times

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Speaker 8: refused to let its reporters testify in front of a

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Speaker 8: federal grand jury after they were subpoena by the Trump

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Speaker 8: administration over a story about security issues with an air

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Speaker 8: Force one plane donated by Cutter. The Times filed motion

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Speaker 8: under sealed quashed the subpoenas, calling them abusive and improper,

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Speaker 8: and saying they violated the constitutional rights of the Time

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Speaker 8: and its journalists. Global News twenty four hours a day

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Speaker 8: and whenever you want it with Bloomberg News Now Michael

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Speaker 8: barm and this is Bloomberg Herroen.

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Speaker 2: Thanks Michael. Time now for our Bloomberg Sports update, and

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Speaker 2: for that we bring in John stash Hour.

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Speaker 9: Thanks Carrey. Defending champion Argentina has now pulled out four

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Speaker 9: straight World Cup games and has reached the finals. They'll

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Speaker 9: play Spain Sunday in New Jersey. In the Semis yesterday

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Speaker 9: in Atlanta, Argentina trailed England one deal and then scored

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Speaker 9: twice in a six minute span for a two to

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Speaker 9: one victory. Baseball's back tonight with one game. It's between

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Speaker 9: the Mets and the Phillies. A trade Houston sent pitcher

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Speaker 9: Lance mccullors to Milwaukee. Mccullurs was with the Astros for

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Speaker 9: twelve years. That's your Bloomberg Sports update.

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Speaker 6: Stay with us.

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Speaker 2: More from Bloomberg Day Break coming up after this.

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Speaker 13: Coast to Coast on Bloomberg Radio nationwide on Sirius XM

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Speaker 13: and around the world on Bloomberg dot Com and the

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Speaker 13: Bloomberg Business.

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Speaker 6: This is Bloomberg Daybreak.

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Speaker 4: Good morning, I'm Nathan Hagrid. Has been five straight days

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Speaker 4: of US attacks on Iran around the Strait of Hormones

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Speaker 4: and now into the Persian Gulf, but Tehran is showing

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Speaker 4: little sign it's willing to back down from President Trump

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Speaker 4: starts to escalate even further.

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Speaker 11: I don't like giving the deadlines, but they pretty much

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Speaker 11: know they know the story.

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Speaker 9: They better behave.

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Speaker 4: That was President Trump speaking to reporters outside the White

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Speaker 4: House and joining us from Dubai. This morning is Bloomberg

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Speaker 4: News Middle East Managing editor Owner aunt Owner. We've heard

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Speaker 4: the President say that the US will strike even harder.

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Speaker 4: He's even threatened to go after energy infrastructure as soon

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Speaker 4: as next week. Does it seem as though the US

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Speaker 4: attacks are intensifying to the level that the President has suggested?

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Speaker 6: Good morning, Good morning.

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Speaker 3: Well, the US attacks are not at that level yet.

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Speaker 3: Having said that, after five weeks off US strikes on

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Speaker 3: Iran and Iran's retaliatory attacks on US bases in the

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Speaker 3: Persian Gulf and elsewhere in the Middle East, is a

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Speaker 3: sign that we can say the interim peace period, if

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Speaker 3: we can call it, that has all but collapsed. Yes,

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Speaker 3: Donald Trump did say that next week they might go

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Speaker 3: after they might start going after some energy assets, starting

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Speaker 3: with power plants and bridges, which is something that he

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Speaker 3: threatened to do earlier in the war, in March especially,

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Speaker 3: and some of those attacks did take place, which resulted

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Speaker 3: in mats of retaliation. So the hope right now at

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Speaker 3: this in the region is that it doesn't go to

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Speaker 3: that level. But that's definite the directions as we stand now, we've.

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Speaker 4: Heard from the head of the International Maritime Association and

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Speaker 4: an interview with Bloomberg Radio saying the strait of hormones

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Speaker 4: is now too dangerous for commercial travel. How significant is

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Speaker 4: it for an official of that capacity to deliver that

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Speaker 4: kind of warning.

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Speaker 3: It was extremely significant. Then they're not alone. India has

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Speaker 3: just advised it's shipping companies and shipping companies to basically

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Speaker 3: stay away from trips across the hormouse straight and they

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Speaker 3: asked Indian seamen not to be sent to the area. Look,

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Speaker 3: I think what we need to look at is the

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Speaker 3: level of traffic, and it's dwindled, it's come down to

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Speaker 3: basically nothing. We've seen supertankers getting hit by Iran and

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Speaker 3: also as well as the US, and a most recent

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Speaker 3: example that took place yesterday, and we're seeing a slump

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Speaker 3: in oil loadings in the Persian Gulf by Saudi Arabia,

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Speaker 3: which is a bit of an exception because it is

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Speaker 3: not as reliant on loadings from within the Persian Gulf

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Speaker 3: as other countries are because of its ability to divert

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Speaker 3: its oil supplies oil exports to ports on the Red

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Speaker 3: Sea coast. But we've also seen a decline in shuttle

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Speaker 3: traffic which was used by the likes of United Arab

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Speaker 3: Emirates to get it to get the oil out of

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Speaker 3: the Persian Gulf and basically transferred to other ships for

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Speaker 3: exports elsewhere. So as things stand now, there is a

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Speaker 3: huge difference between what's going through now in the straight

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Speaker 3: up foremoose and what was the case just a week

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Speaker 3: ago before the latest round of attacks and counterstrikes started

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Speaker 3: taking place between the US and Iran.

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Speaker 4: And not just around the strait of Hormu's owner. We've

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Speaker 4: also seen the US strike a sanctioned oil tanker inside

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Speaker 4: the Persian Gulf. Could we be seeing an expansion of

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Speaker 4: the blockade.

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Speaker 3: Yeah, that is a first, or at least one of

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Speaker 3: the rare examples where a ship, an Iranian ship, was

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Speaker 3: struck so deep inside the Persian Gulf. As you said, Nathan,

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Speaker 3: the actual blockade, the physical blockade, is further to the

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Speaker 3: south of where that instant took place, and it shows

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Speaker 3: the American willingness and obviously as well as capability to

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Speaker 3: strike Iranian ships even after they go past what we

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Speaker 3: believe is the general contours of the American block Kate

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Speaker 3: that is now outside the gulf, outside the Strait of Hormoos.

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Speaker 4: And we only have about thirty seconds left here. Owner,

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Speaker 4: But does all this seem as though it's getting the

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Speaker 4: US and Iran any closer to getting back to a

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Speaker 4: negotiating table.

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Speaker 3: No, it's not the last time this kind of pickup

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Speaker 3: took place. It was down to the negotiators to basically

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Speaker 3: pull off a breakthrough in diplomatic talks, which may always

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Speaker 3: happen in an unexpected way. But we have no indication

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Speaker 3: from either side that they are close to a breakthrough

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Speaker 3: the kind of breakthrough that we saw before, Nathan.

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Speaker 4: Okay, Owner on, thank you for this. We'll be checking

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Speaker 4: back with you throughout the morning. That's a Bloomberg News

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Speaker 4: Middle East Managing editor owner aunt with us this morning

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Speaker 4: from Dubai Karen Nathan.

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Speaker 2: We now want to turn to Bloomberg's exclusive discussion from

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Speaker 2: the Aspen Security Forum with US Trade Representative Jamison Greer.

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Speaker 2: He spoke with Bloomberg's David Gura in a wide ranging

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Speaker 2: conversation explaining why stability for China trade time remains a

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Speaker 2: top priority ahead of the expected visit a President she

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Speaker 2: to the US in September. It began the conversation discussing

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Speaker 2: China and Section three oh one notices.

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Speaker 1: Let's listen in so China's compliance with the rare earth

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Speaker 1: elements of our agreements. It's not perfect. I think everyone

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Speaker 1: knows that. You can read that in the paper. That

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Speaker 1: being said, we are getting a flow of rare earth.

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Speaker 1: We don't have factory shutting down because they don't have it.

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Speaker 1: But again, we really want to be in a position

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Speaker 1: where we were, you know, in twenty twenty four and

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Speaker 1: twenty twenty three in President Trump's first term, where we

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Speaker 1: had a regular flow of rare earths. We also know

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Speaker 1: that the Chinese they use rare earth for economic coercion.

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Speaker 1: They did it in twenty ten and twenty eleven, they're

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Speaker 1: doing it now, so it's not necessarily surprising. But we're

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Speaker 1: continuing to you know, to have some flow and where

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Speaker 1: we have gaps, where we have problems the sector of

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Speaker 1: the treasury and I you know, we work with our

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Speaker 1: counterpart in China to try to loosen that flow up.

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Speaker 1: Sometimes we're more successful than others. One important thing is

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Speaker 1: we're moving forward in the US on rare earth production.

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Speaker 1: One of the things I'm doing on my trip out

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Speaker 1: west here, I'm going to Utah to visit facility where

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Speaker 1: we've already they've discovered rare earth in the Utah Desert

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Speaker 1: and they're refining them and further manufacturing them at a

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Speaker 1: facility in Utah, which is a great development for US

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Speaker 1: national and economic security.

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Speaker 6: You've got rare earths.

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Speaker 10: There's huge pharmaceutical dependents as well, and I wonder how

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Speaker 10: you're thinking about that, the way that you can kind

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Speaker 10: of curb our reliance on Chinese pharmaceuticals and ingredients.

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Speaker 1: Yeah, we think about this a lot. This is really

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Speaker 1: critical because at the end of the day, if somehow

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Speaker 1: you lose access to Chinese inputs, it can be a

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Speaker 1: huge challenge for our own manufacturing base. And some people

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Speaker 1: will say, well, what about India, Fine, but a lot

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Speaker 1: of the inputs that India uses also come from China.

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Speaker 1: One great thing that we're seeing as we try to

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Speaker 1: encourage companies to reshore is we actually have commitments from

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Speaker 1: seventeen pharmaceutical companies, the largest and the most major pharmaceutical companies,

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Speaker 1: not only to lower prices of medication here in the US,

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Speaker 1: pharmaceutical prices have gone down by two point five percent,

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Speaker 1: but they've also agreed to reshore here and to manufacture here.

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Speaker 1: And so we have companies like Eli Lilly and Novardes

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Speaker 1: and others actually pouring concrete and superstructures going up in

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Speaker 1: new facilities in North Carolina and Indiana and southern California.

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Speaker 10: If there's a long way to go until this meeting

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Speaker 10: in September when the Chinese president comes to the United States.

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Speaker 10: But let me ask you, lastly, sir, how you're thinking

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Speaker 10: about that. You were so integral to the conversations that

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Speaker 10: took place in Beijing. What are you expecting deliverables wise

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Speaker 10: to come out of that meeting in Washington in a

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Speaker 10: couple months.

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Speaker 1: Well, the number one deliverable we always have between President

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Speaker 1: Trump and President She is to continue the stability of

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Speaker 1: the relationship. Both of these leaders are very committed to

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Speaker 1: having a strong and solid personal relationship. Now that doesn't

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Speaker 1: mean we don't have issues in the broader relationship. Obviously

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Speaker 1: we do. China is a big challenge for the US

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Speaker 1: in a lot of ways, but we want to make

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Speaker 1: sure we're delivering stability. There's never been a situation where

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Speaker 1: the US side or even the Chinese side, has gone

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Speaker 1: out and said one should expect a comprehensive agreement that

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Speaker 1: resolves all issues.

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Speaker 7: Like.

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Speaker 1: No one's ever promised that, So that's not what we expect.

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Speaker 1: We will have an opportunity to take stock of Chinese

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Speaker 1: commitments with respect to purchases of soybeans and other agricultural products,

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Speaker 1: will take stock on the rare off issues we decided,

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Speaker 1: So I think it'll be a moment for stock taking,

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Speaker 1: you know, confirming the relationship, making sure that China's complying

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Speaker 1: with what it's agreed to do. That's really what we're

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Speaker 1: looking forward to in this meetium.

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