WEBVTT - Israel-Iran Truce in Question; President Trump Calls for Rate Cuts 0:00:02.520 --> 0:00:07.040 Bloomberg Audio Studios, Podcasts, Radio News. 0:00:10.000 --> 0:00:13.160 Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 0:00:13.200 --> 0:00:14.920 are the stories we're following today. 0:00:15.360 --> 0:00:17.440 Karen, we begin with the latest from the Middle East. 0:00:17.480 --> 0:00:20.520 Two days after the US dropped bunker buster bombs on 0:00:20.560 --> 0:00:25.160 Iran's key underground nuclear sites, President Trump said a ceasefire 0:00:25.360 --> 0:00:29.400 is in effect between Israel and Iran. The President announced 0:00:29.400 --> 0:00:32.480 it in a truth social post. Last night. Israeli Prime 0:00:32.479 --> 0:00:35.400 Minister Benjamin Netanyaho confirmed that he's agreed to it and 0:00:35.440 --> 0:00:38.319 that he's achieved his war aims. But this morning there 0:00:38.320 --> 0:00:41.400 are questions whether this truce will hold. We get the 0:00:41.520 --> 0:00:44.520 very latest from Bloomberg Middle East anchored Jumana Bursechi. 0:00:45.080 --> 0:00:48.839 They've also said that Israel will respond forcefully to a 0:00:48.920 --> 0:00:51.800 breach of truth. And if you remember, it's quite similar 0:00:51.840 --> 0:00:55.400 to the wording of the truce agreement that Israel had 0:00:55.400 --> 0:00:57.840 in place with Hezbalah at the time when they agreed 0:00:57.880 --> 0:01:01.120 the ceasefire. It was a ceasfire and principle, but again 0:01:01.360 --> 0:01:04.400 Israel reserved the right to still strike back at certain 0:01:04.480 --> 0:01:09.120 Hesbala targets should they deem to have contravened the seas fart. 0:01:09.160 --> 0:01:12.480 It's Bloomberg's Jamanibersat you're reporting in this morning, Israel's military 0:01:12.520 --> 0:01:16.400 set it identified missiles fired from Iran. Defense Minister Israel 0:01:16.480 --> 0:01:20.360 Katz said he instructed his military to respond forcefully. Iran 0:01:20.600 --> 0:01:23.760 is denying that it has launched a new attack, Nathan. 0:01:23.800 --> 0:01:27.560 The ceasefire announcement comes after Iran launched missiles at a 0:01:27.680 --> 0:01:31.680 US airbase and Cutter and retaliation for the bunker Buster attack. 0:01:32.080 --> 0:01:35.120 T Iran launched fourteen missiles at the base, the same 0:01:35.240 --> 0:01:38.839 number as the bunker Busters dropped on its nuclear sites. 0:01:39.240 --> 0:01:41.679 All but one of the missiles were intercepted and no 0:01:41.680 --> 0:01:44.720 one was hurt. Bloomber's Paul Wallace has more from Dubai. 0:01:45.000 --> 0:01:48.880 I think Iran had to do something to save face, 0:01:48.920 --> 0:01:52.760 if nothing else, with its domestic population. And I think 0:01:52.800 --> 0:01:56.040 the Americans well knew that. It just depended what Iran 0:01:56.080 --> 0:01:59.320 would do and how spectacular and how aggressive that retaliation 0:01:59.440 --> 0:02:02.120 would be. In the end, it seemed like it was 0:02:02.240 --> 0:02:07.120 very choreographed, very calibrated, and there's even been speculation that 0:02:07.640 --> 0:02:11.640 Katar knew that this was coming and was actually okay 0:02:11.680 --> 0:02:12.040 with it. 0:02:12.320 --> 0:02:15.840 Bloomer's Paul Wallace reports President Trump spoke with Cutters and 0:02:15.960 --> 0:02:18.960 Mirror about the ceasfire and asked for his help persuading 0:02:19.000 --> 0:02:21.400 Around to agree to it. It's still unclear whether the 0:02:21.400 --> 0:02:24.040 truce will hold or if it'll lead to new discussions 0:02:24.040 --> 0:02:26.240 about Around's nuclear program and Karen. 0:02:26.280 --> 0:02:29.080 Markets are fluctuating with every headline coming out of the 0:02:29.080 --> 0:02:32.079 Middle East. Futures are higher, but off their best levels 0:02:32.120 --> 0:02:34.800 of the morning. That follows yesterday's one percent gain on 0:02:34.840 --> 0:02:37.960 Wall Street, and we're seeing oil prices continue to fall 0:02:38.000 --> 0:02:40.000 as well. Right now, nine X crews down more than 0:02:40.040 --> 0:02:42.359 three and a half percent, trading just above sixty six 0:02:42.400 --> 0:02:44.919 dollars a barrel. Brent is also down more than three 0:02:44.919 --> 0:02:47.560 and a half percent at of nearly sixty nine dollars. 0:02:47.760 --> 0:02:51.720 Bloomberg Energy reporter Stephen Stepzinski says oil traders see less 0:02:51.800 --> 0:02:52.919 risk in the market. 0:02:53.120 --> 0:02:57.079 Oil prices are back below the June twelve level. You're 0:02:57.200 --> 0:03:00.840 seeing the market take a large sigh of leaf, and 0:03:00.880 --> 0:03:04.200 that is largely because while we've been through potentially the 0:03:04.240 --> 0:03:09.600 worst flare up in US Iranian conflict in decades, oil 0:03:09.720 --> 0:03:12.680 kept flowing and trade via the Strait of Hormus was 0:03:12.720 --> 0:03:13.399 not affected. 0:03:13.480 --> 0:03:16.480 In Bloomberg, Stevens Stebsinski notes the Middle East pumps about 0:03:16.480 --> 0:03:18.120 a third of the world's crude supply. 0:03:19.080 --> 0:03:23.160 Nathan the is Israel Around ceasefire comes as leaders gather 0:03:23.280 --> 0:03:25.440 for a NATO summit in the Hague. Ahead of the 0:03:25.440 --> 0:03:28.560 two day meeting, most of the NATO member states agreed 0:03:28.800 --> 0:03:31.600 on a proposed target to raise defense spending to five 0:03:31.639 --> 0:03:35.480 percent of GDP by twenty thirty five. NATO's Secretary General 0:03:35.480 --> 0:03:38.360 Mark Ruda says the ramp up and spending would be 0:03:38.360 --> 0:03:39.840 a quantum leap as. 0:03:39.720 --> 0:03:44.320 The world's becomes more dangerous at our leaders will take 0:03:44.560 --> 0:03:50.160 both desisions to strengthen our collective defense, making NATO a stronger, 0:03:50.680 --> 0:03:53.520 a fair, and a more lethal alliance member. 0:03:53.560 --> 0:03:55.800 It as a new target has not won approval of 0:03:55.840 --> 0:03:58.800 all of NATO, with Spain fighting for an opt out 0:03:58.840 --> 0:04:01.000 that could derail talks to making place in the Hague. 0:04:01.040 --> 0:04:05.160 Today, I'm back in Washington, Karen Fedchair J. Powell begins 0:04:05.200 --> 0:04:08.800 two days of testimony on the economy before Congress. Later 0:04:08.840 --> 0:04:12.000 this morning, he'll appear before the House Financial Services Committee. 0:04:12.120 --> 0:04:14.520 In a post on social media this morning, President Trump 0:04:14.560 --> 0:04:17.640 said he helps Congress quote really works Powell over for 0:04:17.720 --> 0:04:21.120 not lowering rates already. We get more from Bloomberg's Michael McKee. 0:04:21.320 --> 0:04:23.760 The Fed chair has been squarely in the President's sites 0:04:23.839 --> 0:04:26.599 ever since Donald Trump returned to the White House. Trump 0:04:26.640 --> 0:04:30.120 wants him to lower interest rates now, today and tomorrow. 0:04:30.200 --> 0:04:32.840 J Powell gets his chance to turn the tables. While 0:04:32.880 --> 0:04:35.840 Powell will be more circumspect and polite than the President, 0:04:36.120 --> 0:04:38.720 he'll explain the Central Bank doesn't want to lower rates 0:04:38.760 --> 0:04:42.120 until it knows the impact of Trump's tariff taxes and 0:04:42.200 --> 0:04:45.760 the budget bill on the economy. Expect Republicans to defend 0:04:45.800 --> 0:04:49.360 the President and Democrats to defend the Fed, and Chairman 0:04:49.400 --> 0:04:52.479 Powell to be as neutral as he can be. Michael McKee, 0:04:52.480 --> 0:04:53.280 Bloomberg Radio. 0:04:53.320 --> 0:04:55.240 All right, Mike, thanks and stay with Bloomberg for full 0:04:55.279 --> 0:04:58.120 coverage of Chair Powell's testimony before the House. Will have 0:04:58.160 --> 0:05:00.400 it for you starting at ten am Wall Street Time 0:05:00.400 --> 0:05:04.200 on Bloomberg Radio and the Bloomberg Podcast page on YouTube. 0:05:04.440 --> 0:05:07.200 Return to Politics now on Nathan and on a sweltering 0:05:07.400 --> 0:05:10.640 day at New York City, Democrats will vote in today's 0:05:10.680 --> 0:05:14.800 mayoral primary election. Bloomberg's Lisa Matteo joins us in Manhattan 0:05:14.839 --> 0:05:17.159 with the latest. Lisa, good morning, Good morning, Karen, and 0:05:17.200 --> 0:05:20.320 Hopefully that heat will not affect the turnout now. Polls 0:05:20.320 --> 0:05:23.080 open at six am and voters have a long list 0:05:23.120 --> 0:05:26.120 of candidates choose from eleven or running for the official 0:05:26.120 --> 0:05:29.359 Democratic ticket, but survey showed the contest comes down to 0:05:29.440 --> 0:05:32.400 two men, former Governor Andrew Cuomo and New York State 0:05:32.400 --> 0:05:36.039 Assembly Member so In Ramandami. Now, last night, the former 0:05:36.040 --> 0:05:38.279 governor spoke at a rally for Cuomo for mayor. 0:05:39.200 --> 0:05:44.520 It's about the working families, It's about the struggling middle class. 0:05:45.360 --> 0:05:49.320 It's about people worried about the kitchen table issues, trying 0:05:49.320 --> 0:05:51.600 to figure out how to pay for groceries and pay 0:05:51.640 --> 0:05:55.120 for their rent, and pay for tuition and pay for taxes. 0:05:55.480 --> 0:05:57.520 That's what the Democratic Party is. 0:05:57.560 --> 0:05:58.839 All about now. 0:05:58.880 --> 0:06:02.920 Meanwhile, Mandam been advocating for rend freeze's and free childcare. 0:06:03.440 --> 0:06:06.919 New Yorkers are hungry for a new kind of politics, 0:06:06.920 --> 0:06:09.840 the politics that puts working people first. And we're seeing 0:06:09.839 --> 0:06:11.800 that it's not just in one borough, it's not just 0:06:11.800 --> 0:06:14.920 with one kind of New Yorker, it's across this entire city. 0:06:15.320 --> 0:06:18.440 Polls have largely shown Cuomo winning, but a new Emerson 0:06:18.520 --> 0:06:21.000 College poll showed Mandanmi coming out on top in the 0:06:21.040 --> 0:06:25.840 city's rank choice voting comptroller Brad Landler. Lander is polling 0:06:25.920 --> 0:06:29.120 third in some surveys and has formed an alliance with Mamdanie. 0:06:29.440 --> 0:06:31.920 He had focused on his experience as a manager and 0:06:31.960 --> 0:06:35.640 his opposition to President Trump. City Council Speaker Adrian Adams 0:06:35.680 --> 0:06:39.080 also vying for the nomination, running on her experience in government. 0:06:39.480 --> 0:06:42.800 Other candidates while they include former Democratic National Committee Vice 0:06:42.839 --> 0:06:46.479 chair Michael Blake, New York State Senator Zelnor Myrie, New 0:06:46.560 --> 0:06:49.679 York State Senator Jessica Ramos, former New York City Controller 0:06:49.720 --> 0:06:54.320 Scott Stringer, and retired hedge fund manager Whitney Tilson. Michael Bloomberg, 0:06:54.360 --> 0:06:56.960 the founder majority owner of Bloomberg LP, the parent company 0:06:57.000 --> 0:07:01.200 of Bloomberg Radio, has endorsed Andrew Cuomo Manhattan, Lis Matteo 0:07:01.360 --> 0:07:02.599 Bloomberg Radio. 0:07:02.440 --> 0:07:05.320 Nor Lisa thank You and This year's Democratic nominee will 0:07:05.320 --> 0:07:08.039 face incumbent Mayor Eric Adams, who is elected, of course 0:07:08.080 --> 0:07:10.480 as a Democrat, but he skipped today's primary to run 0:07:10.520 --> 0:07:14.040 as an independent in November. On the Republican side of 0:07:14.080 --> 0:07:17.200 today's ballot, Curtis Sliwa, founder of the anti crime patrol 0:07:17.200 --> 0:07:20.360 group The Guardian Angels, is running unopposed, he will once 0:07:20.400 --> 0:07:22.600 again be the Republican nominee. 0:07:22.920 --> 0:07:26.640 Well, Nathan, How does ranked choice voting work? Bloomberg Gina 0:07:26.680 --> 0:07:29.960 Survetti continues our coverage of the New York City mayoral race. 0:07:30.040 --> 0:07:30.880 In Manhattan. 0:07:31.320 --> 0:07:34.160 Voters choose their favorite candidate, but also can select a 0:07:34.200 --> 0:07:36.920 second favorite, a third, and so on up to five. 0:07:37.400 --> 0:07:40.000 If a candidate gets a majority of first place votes, 0:07:40.040 --> 0:07:43.440 that person wins. If not, the candidate with the fewest 0:07:43.480 --> 0:07:47.480 first place votes is eliminated. Voting machines then examine the 0:07:47.560 --> 0:07:50.760 number two choices on every ballot cast for the eliminated 0:07:50.800 --> 0:07:54.400 person and distribute those votes among the remaining field. The 0:07:54.400 --> 0:07:58.160 process continues until a candidate garner's a majority. For the 0:07:58.200 --> 0:08:01.080 New York mayoral primary, if no candidate wins more than 0:08:01.120 --> 0:08:04.000 fifty percent of the votes on the first ballot, election 0:08:04.080 --> 0:08:07.200 officials planned to wait a week before initiating the ranked 0:08:07.320 --> 0:08:11.400 choice tabulation process in order to include mailed in absentee 0:08:11.440 --> 0:08:13.000 ballots in New York. Gena. 0:08:13.120 --> 0:08:16.760 Cervetti, Bloomberg Radio, Gina, thank you. Turning back to Washington, 0:08:16.800 --> 0:08:19.440 the Supreme Court is allowing President Trump to resume his 0:08:19.560 --> 0:08:23.320 program of swiftly deporting migrants to countries other than their homelands. 0:08:23.320 --> 0:08:26.960 For now. Bloomberg Zamy Morris has more from the nation's capital. 0:08:27.160 --> 0:08:30.360 The Supreme Court lifted a judge's order requiring the Trump 0:08:30.440 --> 0:08:33.480 administration to give people ten days notice and a chance 0:08:33.520 --> 0:08:37.000 to object before deporting them to a third country. The 0:08:37.120 --> 0:08:39.760 order marks a shift for the High Court. The justices 0:08:40.080 --> 0:08:43.480 previously pushed back against the administration's efforts to send some 0:08:43.559 --> 0:08:48.200 immigrants to harsh or potentially dangerous locations with minimal notice. 0:08:48.360 --> 0:08:52.000 The decision drew a scathing descent from Justice Sonya Sotomayor, 0:08:52.200 --> 0:08:54.559 who said the High Court's action was a gross abuse 0:08:54.640 --> 0:08:58.119 of its authority. In Washington, Amy Morris Bloomberg Radio. 0:08:58.080 --> 0:09:01.160 Amy, thank you. Another legal blow for the President Trump 0:09:01.200 --> 0:09:03.760 and his battle with Harvard University. For the second time 0:09:03.800 --> 0:09:05.960 in a week, a federal judge in Boston is issued 0:09:06.480 --> 0:09:10.600 a court order letting the Ivy League keep hosting foreign students. 0:09:10.840 --> 0:09:13.000 The President had tried to bar the students, setting a 0:09:13.080 --> 0:09:19.400 law to safeguard national security. Time off for a look 0:09:19.400 --> 0:09:21.160 at some of the other stories making news in New 0:09:21.240 --> 0:09:22.920 York and around the world, And for that we're joined 0:09:22.920 --> 0:09:25.640 by Bloomberg's Michael Barr, Michael Good morning. 0:09:25.440 --> 0:09:29.720 Good morning, Karen. Oppressive heat and humanity are slamming nearly 0:09:29.800 --> 0:09:33.079 half the country, and today is going to be another 0:09:33.200 --> 0:09:38.280 hot day for many. Bloomberg meniorrologist Rob Carolyn has the latest, Michael. 0:09:38.360 --> 0:09:41.000 High pressure remains situated over the Carolinas, so the hot 0:09:41.000 --> 0:09:43.679 weather continues. We have extreme heat warnings stretching from the 0:09:43.760 --> 0:09:47.000 Carolinas through the district in Baltimore on through Philadelphia, New York, 0:09:47.000 --> 0:09:49.520 and up into southern New England. Many of these cities 0:09:49.559 --> 0:09:52.080 are going to see afternoon high temperatures at or above 0:09:52.120 --> 0:09:54.559 one hundred degrees with the heat index over one hundred 0:09:54.559 --> 0:09:56.520 and five, and that's why those extreme heat warnings are 0:09:56.559 --> 0:09:58.560 in effect. Further to the west, we're looking at lots 0:09:58.559 --> 0:10:00.920 of heat advisories. How he is going to continue to 0:10:00.960 --> 0:10:02.800 shift down into the Atlantics. Of the hot weather in 0:10:02.840 --> 0:10:06.079 many locations continues into Wednesday, if not Thursday. 0:10:06.400 --> 0:10:06.760 Michael. 0:10:07.120 --> 0:10:10.320 Thanks Rob. A jury has now watched nearly forty five 0:10:10.360 --> 0:10:14.920 minutes of recordings of marathon sex events, considered important evidence 0:10:14.960 --> 0:10:18.360 in the sex trafficking and racketeering trial of music mogul 0:10:18.480 --> 0:10:22.679 Sean Diddy Combs. The prosecution says the jury viewed explicit 0:10:22.800 --> 0:10:27.920 footage of two of Combe's former girlfriends sexually involved with 0:10:28.040 --> 0:10:31.760 male sex workers while he filmed the encounters. Combs has 0:10:31.800 --> 0:10:35.120 pleaded not guilty to the charges. Prosecutors planned to rest 0:10:35.120 --> 0:10:39.680 today after a defense presentation. Closing arguments are scheduled for Thursday. 0:10:40.240 --> 0:10:43.920 Attorney General Pam Bondi's hearing before the House Appropriations Committee 0:10:43.960 --> 0:10:49.400 quickly devolved into shouting matches with Democratic lawmakers. Democratic Representative 0:10:49.520 --> 0:10:53.840 Madeleine Dean of Pennsylvania pressed Bondi about reports that she 0:10:54.000 --> 0:10:57.559 advised and signed off on President Trump's acceptance of a 0:10:57.640 --> 0:10:58.880 luxury jet from Cutter. 0:11:00.000 --> 0:11:03.680 True that you gave advice that this was legally permissible? 0:11:03.920 --> 0:11:07.960 Yes or no. I will not discuss any advice that 0:11:08.040 --> 0:11:11.280 my Office of Legal Counsel gives to the President of 0:11:11.320 --> 0:11:13.480 the United States on any matter. 0:11:14.600 --> 0:11:18.240 Meanwhile, Senate Republicans are considering a forty thousand dollars cap 0:11:18.280 --> 0:11:21.199 on state and local tax deductions, but want to lower 0:11:21.240 --> 0:11:24.600 the income threshold. It's a bid to resolve a standoff 0:11:24.640 --> 0:11:28.439 with House Republicans. Senator Mark Wayne Mullen of Oklahoma, a 0:11:28.520 --> 0:11:30.959 key negotiator, said he plans to make the offer to 0:11:31.000 --> 0:11:34.199 House Republicans from New York, New Jersey and California. Other 0:11:34.280 --> 0:11:37.120 issues still need to be resolved, including Medicaid cuts to 0:11:37.520 --> 0:11:41.240 rural hospitals. Global news twenty four hours a day and 0:11:41.360 --> 0:11:43.760 whenever you want it with the Bloomberg News Now, I'm 0:11:43.760 --> 0:11:45.600 Michael Barn. This is Bloomberg Heron. 0:11:46.040 --> 0:11:53.280 All right, Michael Barr, thank you. It is time now 0:11:53.320 --> 0:11:56.200 for the Bloomberg Sports Update, and here's John stash Hour. 0:11:56.320 --> 0:11:57.680 John, Good morning, morning Karen. 0:11:57.720 --> 0:11:59.959 It was just ten days ago the Mets were flying 0:12:00.200 --> 0:12:02.040 in high They had won fifteen of eighteen. They were 0:12:02.080 --> 0:12:04.400 twenty seven and seven at home. They had the best 0:12:04.440 --> 0:12:06.839 record in baseball, a five and a half game lead 0:12:06.880 --> 0:12:10.560 in the NL. Since then, ten games, nine losses. They 0:12:10.640 --> 0:12:13.160 scored only nineteen runs in those nine defeats, so I 0:12:13.240 --> 0:12:16.280 won four. Versus Atlanta, the Braids won three to two 0:12:16.360 --> 0:12:18.920 at City Field and now second place Mets got a 0:12:18.920 --> 0:12:21.200 two run homer from Juan Soto, but nothing else. For 0:12:21.320 --> 0:12:22.600 manager Carlos Mendoza. 0:12:23.040 --> 0:12:26.400 Once the bottom of the lineup, we're having a hard 0:12:26.400 --> 0:12:30.280 time creating opportunities. You normally we religned pretty much on 0:12:30.320 --> 0:12:33.600 the top four five guys, and then if those guys 0:12:33.840 --> 0:12:36.400 in the bottom are not able to get on base, 0:12:37.760 --> 0:12:39.800 that's why we're having a hard time scoring runs right now. 0:12:39.880 --> 0:12:43.520 Mendoza Tonight will start Frankie Montas it'll be his Mets debut. 0:12:43.600 --> 0:12:45.839 Yankees in Cincinnati had a first anting home run from 0:12:45.840 --> 0:12:49.040 Aaron Judges twenty eight. Nothing after that. Yanks loss of 0:12:49.080 --> 0:12:51.280 the red six to one, Red Sox loss of the 0:12:51.320 --> 0:12:54.400 Angels nine to five. Nationals won ten six in San 0:12:54.480 --> 0:12:58.320 Diego and Seattle's win at Minnesota. Home run number thirty 0:12:58.360 --> 0:13:01.319 two for the Mariners switch hitting catcher Cal Rawley. 0:13:01.400 --> 0:13:03.120 He's hit five in his last four games. 0:13:03.320 --> 0:13:05.839 The NBA Draft against tomorrow, the Celtics, that have moved 0:13:05.880 --> 0:13:09.240 to save money, traded Drew Holiday to Portland for Anthony 0:13:09.320 --> 0:13:11.000 Simon's in two second round picks. 0:13:11.000 --> 0:13:13.600 This saves the Celtics forty million. In the Luxury Tacks. 0:13:13.880 --> 0:13:17.120 Tyrese Halliburton had surgery on the torn achilles he suffered 0:13:17.160 --> 0:13:19.160 in Games seven of the Finals. He had a calf 0:13:19.200 --> 0:13:21.920 injury going in said he has no regrets trying to play. 0:13:22.320 --> 0:13:25.559 The Pacers and Celtics are gonna play most, if not all, 0:13:25.600 --> 0:13:29.080 of next season without their star players. Both Halliburton and 0:13:29.200 --> 0:13:31.960 Jason Tatum tore their achilles in the playoffs. That should 0:13:31.960 --> 0:13:33.480 help the Knicks in the East. 0:13:33.880 --> 0:13:35.000 Nick still without a coach. 0:13:35.120 --> 0:13:38.640 Latest name linked to the Knicks job James Barrego, former 0:13:38.720 --> 0:13:41.679 coach in Charlotte, John Stanshatward Bloomberg Sports. 0:13:41.440 --> 0:13:42.200 Karen Nathan. 0:13:44.520 --> 0:13:48.680 Coast to Coast on Bloomberg Radio nationwide on Serious Exam 0:13:48.840 --> 0:13:51.680 and around the world on Bloomberg dot Com and the 0:13:51.720 --> 0:13:54.800 Bloomberg Business app. This is Bloomberg Daybreak. 0:13:54.920 --> 0:13:58.600 Good morning, I'm Nathan Hager. A ceasefire announcement between Israel 0:13:58.640 --> 0:14:02.160 and Iran may already be in doubt hours after President 0:14:02.200 --> 0:14:05.680 Donald Trump posted about it on social media. Israel is 0:14:05.720 --> 0:14:09.320 accusing Iran of breaching the truce, joining us from Tel 0:14:09.320 --> 0:14:13.520 Aviv Bloomberg News Israel Bureau Chief Ethan Bronner Ethan, good morning. 0:14:13.520 --> 0:14:16.800 We've seen a flurry of headlines since the President posted 0:14:16.800 --> 0:14:19.720 that cease fire announcement last night on truth Social what's 0:14:19.760 --> 0:14:20.840 the latest? You can tell. 0:14:20.760 --> 0:14:24.680 Us well, as you said, Nathan, So right after the 0:14:24.720 --> 0:14:28.480 President issue this announcement, there was I think there were 0:14:28.600 --> 0:14:33.640 six volleys of missiles at Israel repeatedly. One after there 0:14:33.720 --> 0:14:36.160 was forty minutes or so we were running in and 0:14:36.200 --> 0:14:40.200 out of bomb shelters. But then the Israelis announced that 0:14:40.240 --> 0:14:42.200 they had accepted it as well, and it seemed it 0:14:42.240 --> 0:14:46.160 was happening. And then just a little while ago, two 0:14:46.200 --> 0:14:49.880 more missiles went to the north. The Iranians apparently say 0:14:49.920 --> 0:14:53.160 they didn't send them, but the Israelis are quite clear 0:14:53.240 --> 0:14:55.200 that who did send them, and they've already seen a 0:14:55.200 --> 0:14:58.840 fragment of it landed in northern Israel. So there clearly 0:14:58.960 --> 0:15:02.360 was some kind of a vile and the Israelis have 0:15:02.480 --> 0:15:06.400 threatened said they're going to carry out a very severe 0:15:06.440 --> 0:15:11.800 attack in Tehran in retaliation. So you're right that it's 0:15:11.800 --> 0:15:15.120 a pretty fragile. My instinct is that it will evolve 0:15:15.320 --> 0:15:17.840 in the next hours, that we will see some kind 0:15:17.840 --> 0:15:20.280 of a truce, because everyone seems to want it, but 0:15:20.400 --> 0:15:20.960 you never know. 0:15:22.000 --> 0:15:25.280 What do we know about the terms of the truth 0:15:25.560 --> 0:15:29.000 that were announced by President Trump last night. How is 0:15:29.040 --> 0:15:29.800 it going to work? 0:15:31.080 --> 0:15:35.480 We don't really know. I'm assuming that there will be 0:15:35.640 --> 0:15:40.200 a kind of formal, you know, quiet for quiet announcement 0:15:40.360 --> 0:15:44.360 between Israel and Iran, and then there'll be a sort 0:15:44.360 --> 0:15:48.280 of unspoken agreement between the United States and Israel, as 0:15:48.320 --> 0:15:51.760 there is with regard to Levin and Hazbollah, in which 0:15:51.880 --> 0:15:56.160 Israel says, if we see clear violations, we are going 0:15:56.200 --> 0:15:58.400 to take you to a lateral action, and the Americans 0:15:58.400 --> 0:16:01.480 are going to say fine. By now, Iran is a 0:16:01.480 --> 0:16:04.440 lot farther away than Lebanon and a lot harder to 0:16:04.520 --> 0:16:08.240 suddenly take action. But that's my instinct about where we're headed. 0:16:08.760 --> 0:16:14.840 Okay. Now, ahead of this apparent break of the seafire, 0:16:15.360 --> 0:16:18.440 Israel had said that it achieved its war aims in 0:16:18.840 --> 0:16:22.479 agreeing to this. Does that mean from the Israeli perspective 0:16:22.520 --> 0:16:25.400 that it no longer sees Iran as a nuclear thread. 0:16:27.120 --> 0:16:28.840 I think it more or less means that, or at 0:16:28.920 --> 0:16:32.000 least that it's its nuclear program is set back sufficiently 0:16:32.200 --> 0:16:35.400 two years or something that it's going to be very 0:16:35.440 --> 0:16:38.440 hard if you have all of these broken centrifuges and 0:16:38.560 --> 0:16:42.120 all of these enrichment sites that are impossible to get 0:16:42.160 --> 0:16:43.760 into or to send. 0:16:43.520 --> 0:16:46.000 Power to it for a while. I think there's the 0:16:46.080 --> 0:16:48.200 sense that we need to still see all of that 0:16:48.960 --> 0:16:54.000 with greater clarity. The yes as a nuclear threshold state 0:16:54.440 --> 0:16:58.040 Iran has been pushed aside for now, and the Israeli 0:16:58.120 --> 0:17:01.120 is also saying that they took care of eighty percent 0:17:01.680 --> 0:17:05.679 of the launchers of ballistic missiles, and so that's the 0:17:05.760 --> 0:17:08.560 less of a threat as well. Obviously it is in 0:17:08.720 --> 0:17:12.399 total victory, but enough for them to declare it as such. 0:17:13.000 --> 0:17:16.920 And of course it came after Iran lobbed the same 0:17:17.000 --> 0:17:20.320 number of missiles as the amount of bunker buster bombs 0:17:20.359 --> 0:17:24.000 that the US dropped on its nuclear sites over the weekend. 0:17:24.080 --> 0:17:27.879 What can we expect when it comes to further US 0:17:28.040 --> 0:17:31.600 involvement here, Well, I mean the. 0:17:31.600 --> 0:17:34.480 Numbers may have been the same, but it was a 0:17:34.480 --> 0:17:37.560 little bit like a kabuki theater. I mean, they dropped 0:17:37.600 --> 0:17:42.760 fourteen missile some kind of projectiles on an American base, 0:17:42.840 --> 0:17:45.600 but they told the Americans and the Kataris where the 0:17:45.640 --> 0:17:50.119 base is in advance. They were all stopped. President Trump 0:17:50.200 --> 0:17:52.400 was kind of narrating it on his truth social as 0:17:52.400 --> 0:17:54.960 it was happening, So it was kind of an active theater. 0:17:55.119 --> 0:17:58.560 I don't think the Americans are planning any kind of retaliation, 0:17:58.800 --> 0:18:02.120 and everyone's hoping that would be it from that perspective. 0:18:02.880 --> 0:18:06.119 So does that mean that we could see resumption of 0:18:06.480 --> 0:18:10.919 discussions around Iran's nuclear program? As you mentioned, there are 0:18:10.960 --> 0:18:14.320 still a lot of questions about the status of the 0:18:14.359 --> 0:18:16.320 program following all these attacks. 0:18:17.119 --> 0:18:21.160 Yes, I assume there will be an attempt to get 0:18:21.160 --> 0:18:24.200 these talks going again. But I think that the American 0:18:24.240 --> 0:18:27.600 and the Rushalian perspective is that what has been destroyed 0:18:27.680 --> 0:18:31.280 is so significant that there isn't an urgency to the 0:18:31.320 --> 0:18:32.959 talks the way there once was. 0:18:34.800 --> 0:18:39.320 So to that extent, where does this last twelve days 0:18:39.400 --> 0:18:43.000 since the Israeli attack on Iran that began all this, 0:18:43.119 --> 0:18:46.800 where does this leave the Iranian regime Ethan? I mean, 0:18:47.040 --> 0:18:50.760 we've seen President Trump muse kind of openly about the 0:18:50.800 --> 0:18:54.359 possibility of regime change by the Iranian people. Could it 0:18:54.440 --> 0:18:54.920 go there? 0:18:56.119 --> 0:18:59.879 Look, I think nobody really you know, predicting revolutions and 0:19:00.240 --> 0:19:05.879 who's is a fool's errand But obviously this government in 0:19:05.960 --> 0:19:08.960 arab this regime is as weak as it has ever been, 0:19:09.720 --> 0:19:12.320 as threatened as it has ever been. It is held on, 0:19:13.480 --> 0:19:15.560 you know, it's got all the leavers of power still 0:19:15.600 --> 0:19:18.600 in its hands. So I don't know what's going to 0:19:18.640 --> 0:19:22.200 happen to it, but there's no question that you know, 0:19:22.359 --> 0:19:26.920 it's friends Russia. China did not come to its aid militarily. 0:19:27.720 --> 0:19:33.399 Its proxies in Lebanon and in Syria and Iraq have 0:19:33.520 --> 0:19:39.000 been almost entirely not eliminated, but certainly diminish. And so 0:19:39.160 --> 0:19:42.280 it is a shadow of its former self as a 0:19:42.320 --> 0:19:45.840 regional power today, and that is what Israel wanted. 0:19:46.600 --> 0:19:48.879 Thank you for this, Ethan. Great to have you with 0:19:48.960 --> 0:19:51.840 us this morning. That is Ethan Bronner joining us from 0:19:51.880 --> 0:19:56.480 Tel Aviv, Israel Bureau chief for Bloomberg News, Karen Nathan. 0:19:56.280 --> 0:19:59.080 Let's repeat some of our top stories this morning. President 0:19:59.080 --> 0:20:02.440 Trump says he hopes Congress really works fed share J. 0:20:02.680 --> 0:20:05.760 Powell as he gets ready for two days of testimony today. 0:20:06.040 --> 0:20:08.680 The President says interest rates should be two to three 0:20:08.680 --> 0:20:12.399 points lower. Another legal blow for President Trump and his 0:20:12.440 --> 0:20:15.080 battle with Harvard. For the second time in a week, 0:20:15.119 --> 0:20:18.000 a federal judge in Boston is issued a court order 0:20:18.080 --> 0:20:21.520 letting the Ivy League keep hosting foreign students and its 0:20:21.600 --> 0:20:24.439 primary day in New York City, voters will contend with 0:20:24.520 --> 0:20:28.400 extreme heat and a ranked choice ballot in the Democratic 0:20:28.480 --> 0:20:30.800 race for mayor. We have more in those stories coming 0:20:30.880 --> 0:20:32.520 up on Bloomberg Daybreak, Nathan. 0:20:32.640 --> 0:20:34.399 All right, Kather, and thank you for that. It is 0:20:34.400 --> 0:20:36.720 a five point twenty two on Wall Street. Want to 0:20:36.760 --> 0:20:39.240 turn now to another one of our top stories. What's 0:20:39.240 --> 0:20:42.080 happening in the Hague. Later today, leaders from the NATO 0:20:42.160 --> 0:20:46.080 Alliance gathering for their annual two day summit, looking to 0:20:46.480 --> 0:20:50.800 lock in big defense spending increases as President Trump prepares 0:20:50.840 --> 0:20:53.160 to make his way to the event. Joining us from 0:20:53.240 --> 0:20:56.760 the Hague this morning is Bloomberg's Oliver Crook. Great to 0:20:56.800 --> 0:21:00.000 speak with you this morning, Oliver, after we heard from 0:21:00.080 --> 0:21:03.159 the Secretary General of NATO Mark Rutta talking about a 0:21:03.720 --> 0:21:07.600 five percent of GDP defense spending goal that would be 0:21:07.680 --> 0:21:11.119 a huge increase from current levels. Does that look like 0:21:11.160 --> 0:21:15.399 it's going to hold? Good morning, Nathan. 0:21:15.480 --> 0:21:16.919 Yeah, it does look like it's going to hold at 0:21:16.920 --> 0:21:18.480 this stage. I mean, there's a little bit of infighting 0:21:18.480 --> 0:21:20.360 which we can get into, but you know, I think 0:21:20.359 --> 0:21:22.840 that what we've learned about the Trump administration and Donald 0:21:22.840 --> 0:21:25.719 Trump itself is he likes one big, beautiful number, and 0:21:25.720 --> 0:21:27.879 that big beautiful number that NATO wants to present to 0:21:27.960 --> 0:21:30.800 him in order to guarantee continued US support of the 0:21:30.840 --> 0:21:34.040 alliance is five percent five percent of GDP spend on 0:21:34.040 --> 0:21:37.240 an annual basis of every single country within the NATO Alliance. 0:21:37.359 --> 0:21:40.879 As you say, Nathan, the previous requirements were two percent. 0:21:41.119 --> 0:21:43.520 Most countries were not hitting that for a very long 0:21:43.560 --> 0:21:46.280 time you take the average of the last decade, in 0:21:46.560 --> 0:21:49.200 removing the United States, it's closer to one point six percent. 0:21:49.440 --> 0:21:52.000