WEBVTT - Trump Reportedly Weighs War Exit; US Fuel Prices Soar

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>Good morning, I'm Nathan Hager and I'm Alexis Christophers.

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<v Speaker 3>Here are the stories we're following today.

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<v Speaker 2>Alexis the first full month of the war, where Iran

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<v Speaker 2>is coming to a close and President Trump is ramping

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<v Speaker 2>up threats even as he considers his options. The Wall

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<v Speaker 2>Street Journal is reporting the President has told aids he

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<v Speaker 2>is willing to end the US campaign against Tehran even

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<v Speaker 2>if the Strait of Hormuz remains largely closed. The report

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<v Speaker 2>says the concern is that a mission to pry open

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<v Speaker 2>the choke point could extend the conflict beyond the president's

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<v Speaker 2>for to six week timeline. White House Press Secretary Caroline

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<v Speaker 2>Levitt says President Trump still wants a deal with Iran.

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<v Speaker 4>President is focused on achieving the objectives of Operation Epic

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<v Speaker 4>Fury with respect to forces that are on the ground

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<v Speaker 4>in the Middle East. It's the job of the Pentagon

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<v Speaker 4>to create maximum optionality for the commander in chief. It

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<v Speaker 4>does not mean the President has made any additional decision.

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<v Speaker 2>Press Secretary Caroline Levitt at the White House, and we

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<v Speaker 2>get more from Bloomberg's Jumana Barsetchi in Dubai.

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<v Speaker 5>To be clear, this has not come from President Trump himself.

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<v Speaker 5>This is reporting in the wool Street Journal. And actually

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<v Speaker 5>the latest from President Trump is a true social post

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<v Speaker 5>that he put up yesterday suggesting that they are in

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<v Speaker 5>discussions with a more quote unquote reasonable regime in Iran

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<v Speaker 5>that ad will be probably reached shortly after which and

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<v Speaker 5>then he says, if this strait is not immediately open

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<v Speaker 5>for business, we will conclude our stay in Iran by

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<v Speaker 5>blowing up and obliterating power plants, oil wells, and carg island.

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<v Speaker 2>Bloomberg's Jumana Barsecci reports in the meantime, and Iranian drone

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<v Speaker 2>struck a fully loaded Kuwaiti oil tanker docked in Dubai

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<v Speaker 2>early this morning. Kuwait's state run oil producer says they

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<v Speaker 2>al sell Me was in an area packed with ships

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<v Speaker 2>waiting to leave the Persian Gulf. Says the strike damage

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<v Speaker 2>the hull and started a fire, but no oil was

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<v Speaker 2>leaked and all twenty four crew members are safe.

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<v Speaker 3>And Nathan analysts say if Iran ends up taking control

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<v Speaker 3>of the Strait of Horror moves, it will be a

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<v Speaker 3>major military miscalculation by the US. Paul Wallace is Managing

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<v Speaker 3>editor for the Middle East.

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<v Speaker 6>For Bloomberg, it would.

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<v Speaker 7>Be very difficult to argue that it's not a strategic

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<v Speaker 7>disaster for the US. This is a waterway choke point

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<v Speaker 7>that was obviously very much open before this war started.

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<v Speaker 7>And if the US ends this war having lost control

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<v Speaker 7>and over that straight to Iran, that's that will go

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<v Speaker 7>down badly and look like a major strategic era.

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<v Speaker 3>Bloomberg News Managing editor Paul Wallace says Iran would take

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<v Speaker 3>in billions of dollars if it were able to take

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<v Speaker 3>control of the Straight and Alexis.

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<v Speaker 2>Gas prices in this country have officially topped four dollars

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<v Speaker 2>a gallon. Triple A says the nationwide average retail price

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<v Speaker 2>for regular unleaded roast almost four oh two, the highest

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<v Speaker 2>since August of twenty twenty two. One energy consultant warns

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<v Speaker 2>that oil will skyrocket even further if the war goes on.

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<v Speaker 6>The prices are to go through the roof.

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<v Speaker 8>It doesn't matter what present.

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<v Speaker 9>What is going through the roof.

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<v Speaker 3>I'm were looking at two hundred.

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<v Speaker 6>Dollars oil if you're looking at one hundred and fifty

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<v Speaker 6>first on two hundred and maybe even more than two hundred.

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<v Speaker 8>Beyond eight weeks, it could go anywhere.

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<v Speaker 2>Chairman Emeritis Faradune Fesheraki of fg E nex and Eca

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<v Speaker 2>made those comments to Bloomberg's Hustlin DA Mean.

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<v Speaker 3>A new United Nations study finds the US and Israeli

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<v Speaker 3>war against Iran could wipe out nearly two hundred billion

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<v Speaker 3>dollars worth of economic growth across the Middle East. The

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<v Speaker 3>report says the overall loss could wind up costing some

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<v Speaker 3>three point six million jobs and push as many as

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<v Speaker 3>four million people into poverty.

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<v Speaker 2>Alex has fed Sarah J. Powell says it's too soon

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<v Speaker 2>to know what kind of economic impact will come from

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<v Speaker 2>the war. Speaking at Harvard University in remarks heard live

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<v Speaker 2>here on Bloomberg, Powell said the Central Bank can afford

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<v Speaker 2>to wait out the crisis.

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<v Speaker 10>You know, it's it's one of those times where you

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<v Speaker 10>get a series of supply shocks, first the pandemic, then

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<v Speaker 10>the much smaller one from tariffs, and then we're getting

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<v Speaker 10>now an energy shock. No one knows how bigot will be.

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<v Speaker 10>It's way too early to know. As I mentioned, we

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<v Speaker 10>do think our policy is in a good place for

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<v Speaker 10>us to wait and see.

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<v Speaker 8>Fedcho J.

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<v Speaker 2>Pal says the labor market remains challenged, but the economy

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<v Speaker 2>remains dynamic and productive.

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<v Speaker 3>We now turn to the markets, Nathan, where futures are

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<v Speaker 3>higher on that Wall Street Journal report that President Trump

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<v Speaker 3>had signaled he was willing to end the military campaign

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<v Speaker 3>against Iran. Checking futures right now, SMP futures up nearly

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<v Speaker 3>one percent down futures now up four hundred and forty

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<v Speaker 3>four points, with Nasdaq futures climbing two hundred five points.

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<v Speaker 3>But it has not been a good one for the

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<v Speaker 3>bulls as we close out the first quarter. Rob Hayworth

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<v Speaker 3>is Senior investment Strategy director at US Bank Asset Management.

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<v Speaker 9>It's been challenging because there hasn't really been any place

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<v Speaker 9>to hide. The one place we liked to start the

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<v Speaker 9>month that has actually worked out for us a little

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<v Speaker 9>bit is global infrastructure, with Master Limited partnerships in that

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<v Speaker 9>component doing fairly well. But otherwise, unless you owned energy

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<v Speaker 9>this quarter, there's not been a lot of places to hide.

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<v Speaker 3>US Bank Asset Management's Rob Hayworth so farthest ye, the

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<v Speaker 3>Dow is down almost six percent, the S and P

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<v Speaker 3>five hundred off by seven point three percent, and the

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<v Speaker 3>Nasdaq down ten and a half percent.

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<v Speaker 2>Welllexis, we may be closing in on a deal. In

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<v Speaker 2>the food industry, The UK's Unilever says talks to sell

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<v Speaker 2>most of its food business to McCormick are advanced and

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<v Speaker 2>could be announced later today. Maker of Hellman's Mayonnaise, would

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<v Speaker 2>offload most of its food unit, excluding some parts like

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<v Speaker 2>its operations in India, for fifteen point seven billion dollars

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<v Speaker 2>in cash upfront and the rest in McCormick stock. Unilevers

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<v Speaker 2>prioritizing its personal care and beauty divisions, which include brands

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<v Speaker 2>like Dove Soap. Last year it spun off its ice

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<v Speaker 2>cream division, which included the Ben and Jerry's brand.

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<v Speaker 3>I Remember That. And a programming note Nathan Markets may

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<v Speaker 3>close on Fridays, but the world does not. That's why

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<v Speaker 3>we're bringing you a new live radio and TV show,

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<v Speaker 3>Bloomberg This Weekend is looking beyond the daily headlines to

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<v Speaker 3>the bigger themes driving politics, business and culture. Joined David Gura,

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<v Speaker 3>Christina Raffini and Lisa Matteo for smart conversations and in

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<v Speaker 3>depth interview and help make sense of the week that's

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<v Speaker 3>been and what comes next. Get Bloomberg This Weekend Live

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<v Speaker 3>Saturdays and Sundays from seven am Eastern Bloomberg Radio TV,

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<v Speaker 3>and the Bloomberg Business App. Time now for a look

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<v Speaker 3>at some of the other stories making news in New

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<v Speaker 3>York and around the world. For that, we're joined by

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<v Speaker 3>Bloomberg's John Tucker.

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<v Speaker 8>Good Morning John, and Good Morning at likexis the head

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<v Speaker 8>of the FCC under fire from both Democrats and Republicans.

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<v Speaker 8>Let's get more from Bloomberg's Matt Piper.

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<v Speaker 6>The ranking members of the Senate Commerce Committee questioned the

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<v Speaker 6>head of the Federal Communications Commission, criticizing his approval of

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<v Speaker 6>Nexstar's merger with Tegna without a vote of the full commission.

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<v Speaker 6>Republican Ted Cruz and Democrat Maria Cantwell jointly told FCC

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<v Speaker 6>chair Brendan Carr that he improperly allowed agency staff to

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<v Speaker 6>greenlight the merger. According to a copy of the letter

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<v Speaker 6>reviewed by Bloomberg, the merger involved waving major anti consolidation rules.

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<v Speaker 6>Senators say significant questions of policy must be addressed by

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<v Speaker 6>the full FCC in a vote. Matt Piper, Bloomberg Radio.

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<v Speaker 8>DSA workers speaking out after receiving their first paychecks in

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<v Speaker 8>more than a month. Agent and union leader Cameron Coachim says,

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<v Speaker 8>they're still struggling to keep up.

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<v Speaker 10>It's been nice that we got these paychecks, but at

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<v Speaker 10>the end of the day, you know we are still

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<v Speaker 10>going to be behind with our late fees and all

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<v Speaker 10>these different things.

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<v Speaker 8>Well, the continuing dh shutdown has lent to mass resignations

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<v Speaker 8>and a record number of sick calls at airport lines

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<v Speaker 8>still persist. Soren Buondani was elected mayor of New York

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<v Speaker 8>City in part on a promise of free childcare, and

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<v Speaker 8>now the city has announced its first free childcare pilot

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<v Speaker 8>program for municipal workers. A ten million dollar renovation project

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<v Speaker 8>currently other way to build a four thousand square foot

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<v Speaker 8>childcare facility in the city's municipal building. It's extended to

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<v Speaker 8>be completed this fall and serve about forty children. Global

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<v Speaker 8>News twenty four hours a day, whenever you want it

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<v Speaker 8>with Bloomberg News Now. I'm John Tucker. This is Bloomberg Alexis.

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<v Speaker 3>Thanks John, time now for our Bloomberg Sports update and

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<v Speaker 3>for that we bring in on Stash Hour.

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<v Speaker 11>It happens fairly off for the NCAA women's tournament that

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<v Speaker 11>best teams prevail. So when they get together Friday and

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<v Speaker 11>Phoenix to start the women's Final Four. It'll be the

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<v Speaker 11>four to one seeds undefeated Yukon, joined by UCLA, Texas

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<v Speaker 11>and South Carolina. The Longhorns obliterated Michigan seventy seven to

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<v Speaker 11>forty one. The game cotch be TCU seventy eight to

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<v Speaker 11>fifty two. This will be their sixth straight Final four.

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<v Speaker 11>NFL owners have awarded the Super Bowl in twenty twenty

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<v Speaker 11>nine to Las Vegas. That's their Bloomberg Sports Update.

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<v Speaker 8>Stay with us.

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<v Speaker 2>More from Bloomberg Daybreak coming up after this.

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<v Speaker 1>Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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<v Speaker 1>and around the world on Bloomberg dot Com and the

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<v Speaker 1>Bloomberg Business opp This is Bloomberg Daybreak.

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<v Speaker 2>Good morning, I'm Nathan Hager. Coming to the end of

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<v Speaker 2>the first full months of the war, where Iran President

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<v Speaker 2>Trump may be weighing his options for an exit. The

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<v Speaker 2>Wall Street Journal is reporting this morning that the President

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<v Speaker 2>is considering winding down the fight even if the strait

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<v Speaker 2>of Horror moves remains effectively closed. Here's White House Press

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<v Speaker 2>Secretary Caroline Lovett.

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<v Speaker 4>The President Commander in chief the Pentagon has always stated

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<v Speaker 4>four to six weeks estimated timeline for Operation Epic Fury.

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<v Speaker 4>We're on day thirty today, so again you do the math.

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<v Speaker 2>It was White House spokesman Caroline Levitt in comments heard

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<v Speaker 2>live on Bloomberg Radio. Joining us this morning from Jerusalem

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<v Speaker 2>is Bloomberg News reporter Dan Williams. So, Dan, we have

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<v Speaker 2>this Wall Street Journal report coming after the President renewed

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<v Speaker 2>his threats to destroy Iran's energy infrastructure if it doesn't

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<v Speaker 2>reopen the strait.

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<v Speaker 8>What do we know this morning, Good morning.

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<v Speaker 12>Good morning. Very little.

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<v Speaker 8>We do know.

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<v Speaker 12>The president is voluble. We know he's unusually unvailable, available

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<v Speaker 12>to members of the press who managed to reach him

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<v Speaker 12>on the phone. We know that much of what he

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<v Speaker 12>says is contradictory, sometimes within the same day. There is

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<v Speaker 12>some evidence that this has been in the past, an

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<v Speaker 12>effort to create successfully tactical smoke screens, perhaps to calm markets,

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<v Speaker 12>perhaps to muster support, as you noted his comments about

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<v Speaker 12>potentially making do with US achievements US and IS raally

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<v Speaker 12>achievements in this war, despite Iran's de facto control of Hormuz,

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<v Speaker 12>that has very much energized or should we say, worried

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<v Speaker 12>many in the Middle East. It could be an effort

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<v Speaker 12>to bring Arab partners militarily into this fight. However, it

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<v Speaker 12>is worth remembering, and one can easily find his opening

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<v Speaker 12>speech his statement on February twenty eighth when this war began.

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<v Speaker 12>There is no mention of Hormos there among the US

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<v Speaker 12>objectives in this war. The objectives, as stated is to

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<v Speaker 12>destroy counteract imminent threats by iron to the United States

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<v Speaker 12>by demolishing its nuclear program and its missile program and

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<v Speaker 12>its navy. The Americans are sticking to what they say

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<v Speaker 12>is success in this matter. The President has said previously

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<v Speaker 12>that just three percent of US petroleum products come through Hormuz.

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<v Speaker 12>That's as opposed to the fact that the Hormoz straight

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<v Speaker 12>accounts for around twenty percent of energy for the rest

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<v Speaker 12>of the world. So it would appear that the United

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<v Speaker 12>States did not set out looking at a change in Hormus.

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<v Speaker 12>It did not set out looking to improve its energy status.

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<v Speaker 12>Given this war, and I imagine by his own account,

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<v Speaker 12>Trump can walk away saying that he satisfied his own objectives.

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<v Speaker 12>That is not something that his partners in the Middle

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<v Speaker 12>East would agree with. Certainly, Iran would hold up a profitable,

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<v Speaker 12>lucrative de factor control of Hormuz as a result of

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<v Speaker 12>this war as a major strategic success. So I think

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<v Speaker 12>time will tell in the coming days. We already know

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<v Speaker 12>that the US and mustering ground forces for potential threatened

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<v Speaker 12>actions on the ground in Iran, including potentially a takeover

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<v Speaker 12>of Hargate Island, which is of great importance to the

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<v Speaker 12>Iranians in terms of energy output. So we will find

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<v Speaker 12>out very soon whether that was yet more smokescreen our

0:12:03.720 --> 0:12:05.640
<v Speaker 12>whether the rubber will now hit the road in terms

0:12:05.640 --> 0:12:09.000
<v Speaker 12>of a ground operation by the Americans to try to

0:12:09.000 --> 0:12:11.160
<v Speaker 12>take the fight to the enemy and win this at

0:12:11.200 --> 0:12:13.160
<v Speaker 12>least when it comes to freeing up the whole moves straight.

0:12:13.440 --> 0:12:17.560
<v Speaker 2>Well, where would this potentially leave Israel? Those objectives, those

0:12:17.600 --> 0:12:21.880
<v Speaker 2>early objectives you mentioned, do they line up with Israel's objectives?

0:12:23.120 --> 0:12:25.240
<v Speaker 12>I think they do. We have these ready Prime ministers

0:12:25.280 --> 0:12:28.800
<v Speaker 12>saying in a NEWSMACS interview yesterday that these Raelis have

0:12:28.840 --> 0:12:32.960
<v Speaker 12>achieved or pass beyond their halfway points of this war.

0:12:33.280 --> 0:12:37.480
<v Speaker 12>The Israeli military this morning saying it can continue sustaining

0:12:37.480 --> 0:12:40.840
<v Speaker 12>those operations in Iran for weeks. It has the targets

0:12:40.880 --> 0:12:43.199
<v Speaker 12>remaining for that. Keep in mind that we are now

0:12:43.200 --> 0:12:45.800
<v Speaker 12>in week five of a war that the partners, the

0:12:45.800 --> 0:12:49.240
<v Speaker 12>allies said from the outset could last four to six weeks.

0:12:49.280 --> 0:12:53.080
<v Speaker 12>We're still within the framework, the time envelope they gave

0:12:53.559 --> 0:12:56.480
<v Speaker 12>from the outset, and it could well be that the Israelis,

0:12:56.520 --> 0:12:59.640
<v Speaker 12>who apparently this week, in fact, in these very hours,

0:13:00.000 --> 0:13:04.880
<v Speaker 12>shifting targets away from what they describe as vital defense

0:13:05.000 --> 0:13:09.240
<v Speaker 12>industry targets in Iran toward economic targets, are now looking

0:13:09.280 --> 0:13:13.400
<v Speaker 12>at second tier targets, basically destroying whatever they can against

0:13:13.400 --> 0:13:17.920
<v Speaker 12>an enemy of almost five decades standing before Trump calls

0:13:17.960 --> 0:13:19.680
<v Speaker 12>an end to this war. If he does call an

0:13:19.760 --> 0:13:21.760
<v Speaker 12>end to this war, keep in mind there may be

0:13:21.800 --> 0:13:24.480
<v Speaker 12>parity on the ground or in the air in terms

0:13:24.480 --> 0:13:27.600
<v Speaker 12>of the military mission sharing, but it's clear that it's

0:13:27.640 --> 0:13:30.040
<v Speaker 12>the United States which calls the shots in this war,

0:13:30.440 --> 0:13:33.559
<v Speaker 12>quite literally and also figuratively in terms of when it

0:13:33.600 --> 0:13:36.320
<v Speaker 12>will end. Should it end in Iran, the Israelis will

0:13:36.360 --> 0:13:38.880
<v Speaker 12>still have their hands full with a second front in

0:13:38.960 --> 0:13:43.319
<v Speaker 12>Lebanon against Iran's allies in Hesbala that is likely to continue,

0:13:43.559 --> 0:13:46.320
<v Speaker 12>and that's likely to be a preoccupation of Israel no

0:13:46.320 --> 0:13:47.520
<v Speaker 12>matter what happens in Iran.

0:13:49.120 --> 0:13:52.280
<v Speaker 3>This is Bloomberg Daybreak, your morning podcast on the stories

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