Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow.
Speaker 3: Here are the stories we're following today.
Speaker 2: Karen, we begin with new risk in the Middle East.
Speaker 2: A ship was attacked on the Strait of Horror Moves yesterday.
Speaker 2: It is the first reported strike since the interim peace
Speaker 2: deal between the US and Iran went into effect last week.
Speaker 2: We get the very latest from Bloomberg Middle East correspondent
Speaker 2: Abira bu Omar in Dubai.
Speaker 4: What we know from American sources is that they're not
Speaker 4: pointing the finger just yet at Iran, but that could
Speaker 4: be very likely the case. And it could be because
Speaker 4: this ship, the middle sized ship that had passed through
Speaker 4: the Strait of Removes, passed through through the waterway that
Speaker 4: is closer to the Gulf of Alman or the part
Speaker 4: of the strait that hugs the coast of Ahman, while
Speaker 4: Iran has been trying to maintain the movement through the
Speaker 4: coasts that are closer to its borders, to be able
Speaker 4: to sort of maintain the movement in a way that
Speaker 4: works in accordance with its own rules.
Speaker 2: Bloomberg's a bierrabo Omar reports The attack has led some
Speaker 2: ship owners to review their exit plans, but traffic does
Speaker 2: continue to move in both directions through the strait. President
Speaker 2: Trump has not directly addressed the episode, but he says
Speaker 2: Iran is focused on the peace process.
Speaker 5: They want to make a deal with us very badly,
Speaker 5: and we probably will.
Speaker 6: I think we will. But the straighter is open.
Speaker 2: President Trump spoke at a White House event with farmers
Speaker 2: where he announced an eleven point one billion dollar aid
Speaker 2: requests for the agriculture sector. President says Iran will use
Speaker 2: its unfrozen assets to buy US wheed and soybeans. He
Speaker 2: says that process will start pretty soon now.
Speaker 3: Nathan to the latest on the other major war overseas.
Speaker 3: Ukrainian President Vladimir Zelenski has approved a forty day influence
Speaker 3: operation to convince Russia to end the conflict. Zelenski gave
Speaker 3: no details of the plan and opposed on social media,
Speaker 3: made after he received a briefing from the head of
Speaker 3: his security service on strikes against Russi targets. Ukraine has
Speaker 3: recently intensified attacks on Russian energy and commodities infrastructure, prompting
Speaker 3: President Vladimir Putin to call for stronger air defenses.
Speaker 2: Well Karenamassive rescue and recovery effort continues in Venezuela, where
Speaker 2: two powerful earthquakes struck within a minute of each other
Speaker 2: Wednesday night. The death toll is up to at least
Speaker 2: two hundred and thirty five from the magnitude seven point
Speaker 2: two and seven point five quakes. Thousands more are hurt.
Speaker 2: Secretary of State Marco Rubio says American search and rescue
Speaker 2: crews are on the way from Los Angeles and the Washington,
Speaker 2: DC area.
Speaker 3: They have a much of collapsed buildings and so they'll
Speaker 3: need a lot of help in terms of digging through that.
Speaker 5: The airport there is badly.
Speaker 3: Damaged, so we'll have to rely on the Department of
Speaker 3: War to deploy assets there.
Speaker 2: Secretary of State Rubio says the US will also assist
Speaker 2: with Venezuela's longer term needs. More than a dozen other
Speaker 2: countries and the United Nations have also pledged aid. Acting
Speaker 2: Venezuelan President Delsi Rodriguez says more than two hundred and
Speaker 2: fifty buildings were damaged in the coastal area near the
Speaker 2: capital Caracas, where the cun Try's main airport was heavily impacted.
Speaker 2: The Venezuelan government setting up a two hundred million dollar
Speaker 2: reconstruction fund with resources from the International Monetary Fund.
Speaker 3: Let's turn to the markets now, Nathan, where tech fears
Speaker 3: are weighing on stocks around the world. As we close
Speaker 3: out the trading week is sell off and Samsung Electronics
Speaker 3: and sk Heintings triggered a second trading suspension in days.
Speaker 3: In South Korea, the COSTP index dropped nearly six percent.
Speaker 3: A couple of things concerning investors include Apple's decision yesterday
Speaker 3: to raise prices on many products. That's raising fears that
Speaker 3: rising component costs could eventually curb demand and slow the
Speaker 3: tech rally. And Polka Mishra is a partner at Javelin
Speaker 3: Wealth Management.
Speaker 7: I think the one sort of reality check that market
Speaker 7: finally got yesterday was Apple cut increasing prices of its products.
Speaker 7: That's actually shown how there's not unlimited money in the market.
Speaker 7: If the chip makers are benefiting, then the product makers
Speaker 7: are going to suffer. So it's the first sign that
Speaker 7: it's not in an endless rally.
Speaker 3: Javelin Wealth Management's Polka Mishra Nashek futures they're down one
Speaker 3: point one percent this morning, and shares a Micron which
Speaker 3: soared to our record yesterday. They are current laid down
Speaker 3: as well. They are lower by about four and a half.
Speaker 2: Percent market Sidria kindly to Apple's decision to increase prices,
Speaker 2: Karen to deal with soaring memory chip costs. That stock
Speaker 2: plunged more than six percent yesterday. Mark German covers Apple
Speaker 2: for Bloomberg. He says the move appears unprecedented.
Speaker 8: Apple has not, at least as long as I've been
Speaker 8: covering the company, which has been well over fifteen years
Speaker 8: at this point. A broad set of price increases, mac
Speaker 8: price increases, iPad, Apple TV, HomePod, ho Pod Mini Vision Pro.
Speaker 8: We're talking about very significant changes here to the starting
Speaker 8: prices of max Well.
Speaker 2: Bloomberg's Mark German says prices will not be raised on iPhones.
Speaker 3: We also adding to a investor angst this morning, Nathan,
Speaker 3: a report that open Ai may delay it's IPO, and
Speaker 3: Bloomberg's Alexis Christopheris joins us with the latest Alexis, good.
Speaker 9: Morning, Good morning, Karen, and Nathan. The New York Times
Speaker 9: is reporting that the chat GPT maker is leaning toward
Speaker 9: holding off on an initial public offering until next year.
Speaker 9: The paper says bankers advising the company on its IPO
Speaker 9: plans cautioned that recent volatility in tech stocks as well
Speaker 9: as in SpaceX's shares following its record IPO, could damp
Speaker 9: an enthusiasm. The time, says CEO Sam Altman, is pushing advisors,
Speaker 9: including bankers and lawyers, to target a valuation of a
Speaker 9: trillion dollars. Open Ai has filed confidentially for an IPO,
Speaker 9: with the SEC, saying it has not decided on timing
Speaker 9: just yet. In New York, Alexis Christophers Bloomberg Radio.
Speaker 2: Right, Alexis thank you. Soft Bank investors aren't taking well
Speaker 2: to the news of a possible delayed open AIIPO. That's
Speaker 2: stock film more than twelve percent in Asia. Soft banks
Speaker 2: investment in the chat GPT maker is slated to standard
Speaker 2: roughly sixty five billion dollars by October. Expectations of a
Speaker 2: big financial windfall from open AI's public debut had Booey
Speaker 2: the soft bank to record highs.
Speaker 3: City Groups strategist Nathan say it's too early to call
Speaker 3: an end to the Ai trade. The team, led by
Speaker 3: Dirk Willer, says equities are likely to keep churning higher
Speaker 3: as corporate earnings remain strong, while quote liquidity has not
Speaker 3: tightened enough to burst the bubble.
Speaker 2: And some mo other news this morning, Karen California will
Speaker 2: vote in November on a controversial proposal to impose a
Speaker 2: one time tax on billionaires help fund federal cuts to
Speaker 2: health care for low income people. A major labor unions
Speaker 2: announced it is moving forward with the proposal despite staunch
Speaker 2: pushback from a wide swath of critics, including Democratic Governor
Speaker 2: Gavin Newsom. Opponents say the tax will push billionaires out
Speaker 2: of California.
Speaker 3: In Washington, Nathan Homeland Security Secretary Mark Wayne Mullen sidestepped
Speaker 3: questions from the top Democrat on the House Appropriations Committee
Speaker 3: about his support for advertising security services at airports nationwide
Speaker 3: and Bloomberg's Amy Morris supports from Washington.
Speaker 10: Ranking committee member Rosa Deloro of Connecticut asked Secretary Mullen
Speaker 10: how the department can justify the move after all the
Speaker 10: sacrifices made by TSA workers during what she called the
Speaker 10: Republican shutdown. Mullen took issue with that.
Speaker 2: Well, actually it was the Democrats that voted every time
Speaker 2: to shut them down.
Speaker 4: That's just gimming.
Speaker 8: We didn't shut them down, You shut them.
Speaker 2: Down, answer my question, why are you moving?
Speaker 8: And I answered your question. You're the one that shut
Speaker 8: them down?
Speaker 10: Was the Democrats shutdown? You know, these people come to
Speaker 10: us to get funding for their for the works that they.
Speaker 2: Do, and what you voted to shut them down.
Speaker 10: President Trump is pushing the move in the budget process,
Speaker 10: alongside efforts to strip federal workers of collective bargaining rights.
Speaker 10: TSA workers would be affected in Washington. Amy Morris Bloomberg.
Speaker 2: Radio Okamie, thank you, and White House officials say President
Speaker 2: Trump will take his first trip on the new presidential
Speaker 2: plane next week when he travels to an event in
Speaker 2: North Dakota. The plane was gifted by the Katars government.
Speaker 2: It's intended to serve as a temporary plane until a
Speaker 2: new fleet of Boeing jets arrives. President Trump had defended
Speaker 2: accepting the gift from Katar, saying it would be foolish
Speaker 2: to turn it down, and he's praised the plane, saying,
Speaker 2: quote this is the sleekest line, and quote again, it
Speaker 2: was my taste.
Speaker 3: Some time now for a look at some of the
Speaker 3: other stories making news in New York and around the world.
Speaker 3: And for that we're joined by Bloomberg's Michael bar Michael,
Speaker 3: good morning.
Speaker 11: Good morning Karon. A campaign promise from New York City
Speaker 11: Mayor Zora Memdani has been fulfilled. The Rent Guidelines Board
Speaker 11: voted last night seven to one to freeze rents for
Speaker 11: nearly one million rent stabilized apartments. The freeze applies to
Speaker 11: both one and two year leases. In a statement, Memdani said,
Speaker 11: this is a historic victory for New York City tenants.
Speaker 11: This tenant was at the meeting.
Speaker 12: For years, landlords had run this city and this is
Speaker 12: like a new era of tenant power. We have a
Speaker 12: rent freeze, Mayor dozens for one hundreds of people came
Speaker 12: out and tested five thousands online, like the landlord's days
Speaker 12: are over. Tennis eera in power now and it feels amazing.
Speaker 11: The real estate industry is against the rent freeze, claiming
Speaker 11: it would hurt landlord's ability to maintain their buildings.
Speaker 9: The whole process is such a post.
Speaker 11: Audio courtesy of ABC seven. Discussions are said to have
Speaker 11: stopped for now about a possible plea deal for Luigi Mangioni,
Speaker 11: who is accused of killing a United Healthcare CEO on
Speaker 11: a Manhattan street. Mangione who has pleaded not guilty heads
Speaker 11: back to court on Monday. The Manhattan District Attorney's Office
Speaker 11: has decided to drop a rape case against Harvey Weinstein
Speaker 11: after two consecutive juries failed to reach a verdict on
Speaker 11: the charge. The DA's office is said to have consulted
Speaker 11: with the alleged rape victim, Jessica Man, who wants to
Speaker 11: move on with their life. Weinstein still faces prison time
Speaker 11: for a California conviction. A top official at the National
Speaker 11: Park Service, as a liner along the attom of the
Speaker 11: Lincoln Memorial Reflecting Pool, was cut with a sharp knife
Speaker 11: or razor, causing damage to the foam sealant installed as
Speaker 11: part of a sixteen million dollar rehabilitation project. Frank Lan's,
Speaker 11: deputy director of Operations for the Park Service, said about
Speaker 11: seventy fence post tops were also thrown into the pool.
Speaker 11: Lands made statements in a court document as part of
Speaker 11: a lawsuit filed by a nonprofit organization to halt the
Speaker 11: administration's work on the project. Meanwhile, work to drain the
Speaker 11: pool also faces algae issues, and it won't happen until
Speaker 11: the fourth of July. Luble News twenty four hours a
Speaker 11: day and whenever you want it with the Bloomberg News
Speaker 11: Now now Michael Barr, and this is Bloomberg Karen.
Speaker 3: Thanks Michael. A time now for our Bloomberg Sports update,
Speaker 3: and for that we bring in John stash Hour.
Speaker 6: Thanks John. The World Cup team played in Los Angeles
Speaker 6: was essentially meaningless for both teams, the US already having
Speaker 6: won its group, Turkey already knowing it's going home. After
Speaker 6: the game, Turkey a scored late game three to two,
Speaker 6: and now the US gets ready for a knockout round
Speaker 6: game next Wednesday. Another big trade of the NBA, Minnesota
Speaker 6: made the Julius Randall to Brooklyn trade, and now the
Speaker 6: Timberwolves have acquired star point guard LaMelo Ball from Charlotte
Speaker 6: in exchange for nas reading four draft picks. That to
Speaker 6: the Bloomberg Sports Update.
Speaker 3: Stay with us. More from Bloomberg day Break coming up
Speaker 3: after this.
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
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Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 2: Good morning, I'm Nathan Hager. An attack on a ship
Speaker 2: in the Strait of Horror Moves is pointing to the
Speaker 2: risk to Middle East shipping even with an interim peace
Speaker 2: steal and effect between the US and Iran, President Trump
Speaker 2: says the deal is still intact.
Speaker 3: We knocked the hell out of them, and now we're
Speaker 3: negotiating from a position of pure strike pier strength.
Speaker 12: They know that, and the straits already and we're.
Speaker 11: Setting records in this.
Speaker 2: I was President Trump at a White House event with
Speaker 2: farmers last night, joining us from Dubai this morning. Is
Speaker 2: Bloomberg's head of Middle East coverage, Stuart Livingston. Wallace, Stuart,
Speaker 2: what more do we know about this attack? What could
Speaker 2: it mean for the negotiating position between the US and Iran?
Speaker 5: Good morning, Good morning, Nathan. I mean, at the moment,
Speaker 5: the details are not entirely clear. I mean specifically who
Speaker 5: exactly carried out the attack, and as of now, no
Speaker 5: one has really claimed responsibility for it. However, we can
Speaker 5: read into it certain important points, which is, this ship
Speaker 5: was traveling in the so called Southern Corridor, hugging the
Speaker 5: coast of Oman, which is obviously the alternative route to
Speaker 5: the Northern Passageway, which hugs the coast of Iran, and
Speaker 5: therefore one might presume that it was perhaps a warning
Speaker 5: of sorts not to use that southern route and to
Speaker 5: stick to the one close to the Ranian coast. And
Speaker 5: from that you can extrapolate that there is pressure from
Speaker 5: Iran that it wants to maintain the control over hormones
Speaker 5: and ultimately would like to extract a revenue stream from
Speaker 5: all the ships that go through there every day, which
Speaker 5: you know, we don't know quite what that toll would
Speaker 5: look like, whether indeed it would be called a toll
Speaker 5: or a fee, but we're talking about billions and billions
Speaker 5: of dollars every year, you would presume in terms of
Speaker 5: what that means for the negotiations, it's going to be
Speaker 5: very difficult because so far the red line for the
Speaker 5: US and for many of its allies and in even
Speaker 5: most of the region has been that that the Strait
Speaker 5: must remain an area of free passage for international commas.
Speaker 2: And to that point, we heard from Secretary of State
Speaker 2: Marco Rubio talking about the difficulties that he sees around
Speaker 2: charging any kind of fees for whether it's tolling or
Speaker 2: insurance or whatever you want to call it, through the
Speaker 2: Strait of Hormones. But just sixty days to negotiate a
Speaker 2: broader piece deal, could this situation the status of the
Speaker 2: strait of hormones bog things down toward a more permanent deal.
Speaker 5: Yeah, I mean absolutely, it's going to be a problem
Speaker 5: going forward. I would say it's one of a number
Speaker 5: of problems. I mean, it's probably the most pressing because
Speaker 5: that's the one that's had the immediate impact on the
Speaker 5: global economy far and wide, and will continue to do
Speaker 5: so despite the recent drop in oil prices. You know,
Speaker 5: we're a long way from going back to normal in
Speaker 5: terms of global energy supply. But in terms of that
Speaker 5: sixty day timeframe, I'm not sure how many people actually
Speaker 5: believe that we'll get anything done in sixty days. The
Speaker 5: last major nuclear agreement we had with Iran, the JCPOA,
Speaker 5: took the better part of two years. Wasn't quite years,
Speaker 5: but pretty much there. So I suppose in theory they
Speaker 5: could use that as the basis of the current negotiations,
Speaker 5: but that seems quite unlikely. So I think the expectation
Speaker 5: is that will probably be extended. But then you add
Speaker 5: to that all the huge problems on top of their
Speaker 5: not just the nuclearile, not just hour moves, but also
Speaker 5: the issue of ballistic missiles, of sanctions, of frozen assets,
Speaker 5: support for It's a very very long list, and they're
Speaker 5: all very very thorny issues.
Speaker 2: And when it comes to this attack yesterday, Stuart, how
Speaker 2: is it affecting traffic through the Strait of horror moves?
Speaker 11: Now?
Speaker 2: We had heard from the President that something like nineteen
Speaker 2: million barrels of oil had gone through the Strait in
Speaker 2: just one day. Is it starting to have an impact
Speaker 2: on the level of flows through the Strait now?
Speaker 5: It's very difficult to say, because it's always been a
Speaker 5: little bit patchy, and a lot of the ships going
Speaker 5: through continue to turn off their signals, which means that
Speaker 5: often we don't discover that they've gone through until several
Speaker 5: days later when they emerge somewhere in the Indian Ocean
Speaker 5: or off the coast of somewhere quite far away. So
Speaker 5: I can't really give you defind advance of What I
Speaker 5: can say, which I think is difficult to argue against,
Speaker 5: is that as far as the international shipping industry is concerned,
Speaker 5: the fact that you can still get attack going through
Speaker 5: there is going to make them very cautious about moving ships,
Speaker 5: either in or route. And just one example, the International
Speaker 5: Maritime Organized was working on an evacuation plan for the
Speaker 5: hundreds of ships still stuck inside the Persian Gulf. As
Speaker 5: of now, that's suspended because again they can't guarantee safety
Speaker 5: coming through horror moves. So I think it's going to
Speaker 5: be something that develops over the next several weeks. We'll
Speaker 5: see if there are a further attacks, what the negotiations
Speaker 5: look like. What's telling is that the Sultan of Oman
Speaker 5: is going to be in France next week. I believe
Speaker 5: and you presume that horr moves will be very high
Speaker 5: on the agenda. I think the Omani position is going
Speaker 5: to be critical here because they're obviously one of the
Speaker 5: two countries that actually sits on that straight and to
Speaker 5: some extent, can determine the outcome.
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