WEBVTT - Ship Attacked in Hormuz; Quake Devastates Venezuela

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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 Karen Moscow.

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

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<v Speaker 2>Karen, we begin with new risk in the Middle East.

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<v Speaker 2>A ship was attacked on the Strait of Horror Moves yesterday.

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<v Speaker 2>It is the first reported strike since the interim peace

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<v Speaker 2>deal between the US and Iran went into effect last week.

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<v Speaker 2>We get the very latest from Bloomberg Middle East correspondent

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<v Speaker 2>Abira bu Omar in Dubai.

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<v Speaker 4>What we know from American sources is that they're not

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<v Speaker 4>pointing the finger just yet at Iran, but that could

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<v Speaker 4>be very likely the case. And it could be because

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<v Speaker 4>this ship, the middle sized ship that had passed through

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<v Speaker 4>the Strait of Removes, passed through through the waterway that

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<v Speaker 4>is closer to the Gulf of Alman or the part

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<v Speaker 4>of the strait that hugs the coast of Ahman, while

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<v Speaker 4>Iran has been trying to maintain the movement through the

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<v Speaker 4>coasts that are closer to its borders, to be able

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<v Speaker 4>to sort of maintain the movement in a way that

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<v Speaker 4>works in accordance with its own rules.

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<v Speaker 2>Bloomberg's a bierrabo Omar reports The attack has led some

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<v Speaker 2>ship owners to review their exit plans, but traffic does

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<v Speaker 2>continue to move in both directions through the strait. President

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<v Speaker 2>Trump has not directly addressed the episode, but he says

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<v Speaker 2>Iran is focused on the peace process.

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<v Speaker 5>They want to make a deal with us very badly,

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<v Speaker 5>and we probably will.

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<v Speaker 6>I think we will. But the straighter is open.

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<v Speaker 2>President Trump spoke at a White House event with farmers

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<v Speaker 2>where he announced an eleven point one billion dollar aid

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<v Speaker 2>requests for the agriculture sector. President says Iran will use

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<v Speaker 2>its unfrozen assets to buy US wheed and soybeans. He

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<v Speaker 2>says that process will start pretty soon now.

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<v Speaker 3>Nathan to the latest on the other major war overseas.

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<v Speaker 3>Ukrainian President Vladimir Zelenski has approved a forty day influence

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<v Speaker 3>operation to convince Russia to end the conflict. Zelenski gave

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<v Speaker 3>no details of the plan and opposed on social media,

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<v Speaker 3>made after he received a briefing from the head of

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<v Speaker 3>his security service on strikes against Russi targets. Ukraine has

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<v Speaker 3>recently intensified attacks on Russian energy and commodities infrastructure, prompting

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<v Speaker 3>President Vladimir Putin to call for stronger air defenses.

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<v Speaker 2>Well Karenamassive rescue and recovery effort continues in Venezuela, where

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<v Speaker 2>two powerful earthquakes struck within a minute of each other

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<v Speaker 2>Wednesday night. The death toll is up to at least

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<v Speaker 2>two hundred and thirty five from the magnitude seven point

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<v Speaker 2>two and seven point five quakes. Thousands more are hurt.

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<v Speaker 2>Secretary of State Marco Rubio says American search and rescue

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<v Speaker 2>crews are on the way from Los Angeles and the Washington,

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<v Speaker 2>DC area.

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<v Speaker 3>They have a much of collapsed buildings and so they'll

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<v Speaker 3>need a lot of help in terms of digging through that.

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<v Speaker 5>The airport there is badly.

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<v Speaker 3>Damaged, so we'll have to rely on the Department of

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<v Speaker 3>War to deploy assets there.

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<v Speaker 2>Secretary of State Rubio says the US will also assist

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<v Speaker 2>with Venezuela's longer term needs. More than a dozen other

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<v Speaker 2>countries and the United Nations have also pledged aid. Acting

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<v Speaker 2>Venezuelan President Delsi Rodriguez says more than two hundred and

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<v Speaker 2>fifty buildings were damaged in the coastal area near the

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<v Speaker 2>capital Caracas, where the cun Try's main airport was heavily impacted.

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<v Speaker 2>The Venezuelan government setting up a two hundred million dollar

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<v Speaker 2>reconstruction fund with resources from the International Monetary Fund.

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<v Speaker 3>Let's turn to the markets now, Nathan, where tech fears

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<v Speaker 3>are weighing on stocks around the world. As we close

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<v Speaker 3>out the trading week is sell off and Samsung Electronics

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<v Speaker 3>and sk Heintings triggered a second trading suspension in days.

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<v Speaker 3>In South Korea, the COSTP index dropped nearly six percent.

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<v Speaker 3>A couple of things concerning investors include Apple's decision yesterday

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<v Speaker 3>to raise prices on many products. That's raising fears that

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<v Speaker 3>rising component costs could eventually curb demand and slow the

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<v Speaker 3>tech rally. And Polka Mishra is a partner at Javelin

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<v Speaker 3>Wealth Management.

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<v Speaker 7>I think the one sort of reality check that market

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<v Speaker 7>finally got yesterday was Apple cut increasing prices of its products.

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<v Speaker 7>That's actually shown how there's not unlimited money in the market.

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<v Speaker 7>If the chip makers are benefiting, then the product makers

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<v Speaker 7>are going to suffer. So it's the first sign that

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<v Speaker 7>it's not in an endless rally.

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<v Speaker 3>Javelin Wealth Management's Polka Mishra Nashek futures they're down one

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<v Speaker 3>point one percent this morning, and shares a Micron which

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<v Speaker 3>soared to our record yesterday. They are current laid down

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<v Speaker 3>as well. They are lower by about four and a half.

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<v Speaker 2>Percent market Sidria kindly to Apple's decision to increase prices,

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<v Speaker 2>Karen to deal with soaring memory chip costs. That stock

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<v Speaker 2>plunged more than six percent yesterday. Mark German covers Apple

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<v Speaker 2>for Bloomberg. He says the move appears unprecedented.

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<v Speaker 8>Apple has not, at least as long as I've been

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<v Speaker 8>covering the company, which has been well over fifteen years

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<v Speaker 8>at this point. A broad set of price increases, mac

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<v Speaker 8>price increases, iPad, Apple TV, HomePod, ho Pod Mini Vision Pro.

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<v Speaker 8>We're talking about very significant changes here to the starting

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<v Speaker 8>prices of max Well.

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<v Speaker 2>Bloomberg's Mark German says prices will not be raised on iPhones.

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<v Speaker 3>We also adding to a investor angst this morning, Nathan,

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<v Speaker 3>a report that open Ai may delay it's IPO, and

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<v Speaker 3>Bloomberg's Alexis Christopheris joins us with the latest Alexis, good.

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<v Speaker 9>Morning, Good morning, Karen, and Nathan. The New York Times

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<v Speaker 9>is reporting that the chat GPT maker is leaning toward

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<v Speaker 9>holding off on an initial public offering until next year.

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<v Speaker 9>The paper says bankers advising the company on its IPO

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<v Speaker 9>plans cautioned that recent volatility in tech stocks as well

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<v Speaker 9>as in SpaceX's shares following its record IPO, could damp

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<v Speaker 9>an enthusiasm. The time, says CEO Sam Altman, is pushing advisors,

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<v Speaker 9>including bankers and lawyers, to target a valuation of a

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<v Speaker 9>trillion dollars. Open Ai has filed confidentially for an IPO,

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<v Speaker 9>with the SEC, saying it has not decided on timing

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<v Speaker 9>just yet. In New York, Alexis Christophers Bloomberg Radio.

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<v Speaker 2>Right, Alexis thank you. Soft Bank investors aren't taking well

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<v Speaker 2>to the news of a possible delayed open AIIPO. That's

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<v Speaker 2>stock film more than twelve percent in Asia. Soft banks

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<v Speaker 2>investment in the chat GPT maker is slated to standard

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<v Speaker 2>roughly sixty five billion dollars by October. Expectations of a

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<v Speaker 2>big financial windfall from open AI's public debut had Booey

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<v Speaker 2>the soft bank to record highs.

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<v Speaker 3>City Groups strategist Nathan say it's too early to call

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<v Speaker 3>an end to the Ai trade. The team, led by

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<v Speaker 3>Dirk Willer, says equities are likely to keep churning higher

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<v Speaker 3>as corporate earnings remain strong, while quote liquidity has not

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<v Speaker 3>tightened enough to burst the bubble.

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<v Speaker 2>And some mo other news this morning, Karen California will

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<v Speaker 2>vote in November on a controversial proposal to impose a

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<v Speaker 2>one time tax on billionaires help fund federal cuts to

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<v Speaker 2>health care for low income people. A major labor unions

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<v Speaker 2>announced it is moving forward with the proposal despite staunch

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<v Speaker 2>pushback from a wide swath of critics, including Democratic Governor

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<v Speaker 2>Gavin Newsom. Opponents say the tax will push billionaires out

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<v Speaker 2>of California.

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<v Speaker 3>In Washington, Nathan Homeland Security Secretary Mark Wayne Mullen sidestepped

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<v Speaker 3>questions from the top Democrat on the House Appropriations Committee

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<v Speaker 3>about his support for advertising security services at airports nationwide

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<v Speaker 3>and Bloomberg's Amy Morris supports from Washington.

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<v Speaker 10>Ranking committee member Rosa Deloro of Connecticut asked Secretary Mullen

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<v Speaker 10>how the department can justify the move after all the

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<v Speaker 10>sacrifices made by TSA workers during what she called the

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<v Speaker 10>Republican shutdown. Mullen took issue with that.

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<v Speaker 2>Well, actually it was the Democrats that voted every time

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<v Speaker 2>to shut them down.

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<v Speaker 4>That's just gimming.

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<v Speaker 8>We didn't shut them down, You shut them.

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<v Speaker 2>Down, answer my question, why are you moving?

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<v Speaker 8>And I answered your question. You're the one that shut

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<v Speaker 8>them down?

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<v Speaker 10>Was the Democrats shutdown? You know, these people come to

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<v Speaker 10>us to get funding for their for the works that they.

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<v Speaker 2>Do, and what you voted to shut them down.

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<v Speaker 10>President Trump is pushing the move in the budget process,

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<v Speaker 10>alongside efforts to strip federal workers of collective bargaining rights.

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<v Speaker 10>TSA workers would be affected in Washington. Amy Morris Bloomberg.

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<v Speaker 2>Radio Okamie, thank you, and White House officials say President

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<v Speaker 2>Trump will take his first trip on the new presidential

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<v Speaker 2>plane next week when he travels to an event in

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<v Speaker 2>North Dakota. The plane was gifted by the Katars government.

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<v Speaker 2>It's intended to serve as a temporary plane until a

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<v Speaker 2>new fleet of Boeing jets arrives. President Trump had defended

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<v Speaker 2>accepting the gift from Katar, saying it would be foolish

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<v Speaker 2>to turn it down, and he's praised the plane, saying,

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<v Speaker 2>quote this is the sleekest line, and quote again, it

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<v Speaker 2>was my taste.

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<v Speaker 3>Some time now for a look at some of the

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<v Speaker 3>other stories making news in New York and around the world.

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<v Speaker 3>And for that we're joined by Bloomberg's Michael bar Michael,

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<v Speaker 3>good morning.

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<v Speaker 11>Good morning Karon. A campaign promise from New York City

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<v Speaker 11>Mayor Zora Memdani has been fulfilled. The Rent Guidelines Board

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<v Speaker 11>voted last night seven to one to freeze rents for

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<v Speaker 11>nearly one million rent stabilized apartments. The freeze applies to

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<v Speaker 11>both one and two year leases. In a statement, Memdani said,

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<v Speaker 11>this is a historic victory for New York City tenants.

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<v Speaker 11>This tenant was at the meeting.

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<v Speaker 12>For years, landlords had run this city and this is

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<v Speaker 12>like a new era of tenant power. We have a

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<v Speaker 12>rent freeze, Mayor dozens for one hundreds of people came

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<v Speaker 12>out and tested five thousands online, like the landlord's days

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<v Speaker 12>are over. Tennis eera in power now and it feels amazing.

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<v Speaker 11>The real estate industry is against the rent freeze, claiming

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<v Speaker 11>it would hurt landlord's ability to maintain their buildings.

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<v Speaker 9>The whole process is such a post.

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<v Speaker 11>Audio courtesy of ABC seven. Discussions are said to have

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<v Speaker 11>stopped for now about a possible plea deal for Luigi Mangioni,

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<v Speaker 11>who is accused of killing a United Healthcare CEO on

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<v Speaker 11>a Manhattan street. Mangione who has pleaded not guilty heads

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<v Speaker 11>back to court on Monday. The Manhattan District Attorney's Office

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<v Speaker 11>has decided to drop a rape case against Harvey Weinstein

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<v Speaker 11>after two consecutive juries failed to reach a verdict on

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<v Speaker 11>the charge. The DA's office is said to have consulted

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<v Speaker 11>with the alleged rape victim, Jessica Man, who wants to

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<v Speaker 11>move on with their life. Weinstein still faces prison time

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<v Speaker 11>for a California conviction. A top official at the National

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<v Speaker 11>Park Service, as a liner along the attom of the

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<v Speaker 11>Lincoln Memorial Reflecting Pool, was cut with a sharp knife

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<v Speaker 11>or razor, causing damage to the foam sealant installed as

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<v Speaker 11>part of a sixteen million dollar rehabilitation project. Frank Lan's,

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<v Speaker 11>deputy director of Operations for the Park Service, said about

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<v Speaker 11>seventy fence post tops were also thrown into the pool.

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<v Speaker 11>Lands made statements in a court document as part of

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<v Speaker 11>a lawsuit filed by a nonprofit organization to halt the

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<v Speaker 11>administration's work on the project. Meanwhile, work to drain the

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<v Speaker 11>pool also faces algae issues, and it won't happen until

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<v Speaker 11>the fourth of July. Luble News twenty four hours a

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<v Speaker 11>day and whenever you want it with the Bloomberg News

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<v Speaker 11>Now now Michael Barr, and this is Bloomberg Karen.

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<v Speaker 3>Thanks Michael. A time now for our Bloomberg Sports update,

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<v Speaker 3>and for that we bring in John stash Hour.

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<v Speaker 6>Thanks John. The World Cup team played in Los Angeles

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<v Speaker 6>was essentially meaningless for both teams, the US already having

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<v Speaker 6>won its group, Turkey already knowing it's going home. After

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<v Speaker 6>the game, Turkey a scored late game three to two,

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<v Speaker 6>and now the US gets ready for a knockout round

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<v Speaker 6>game next Wednesday. Another big trade of the NBA, Minnesota

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<v Speaker 6>made the Julius Randall to Brooklyn trade, and now the

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<v Speaker 6>Timberwolves have acquired star point guard LaMelo Ball from Charlotte

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<v Speaker 6>in exchange for nas reading four draft picks. That to

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<v Speaker 6>the Bloomberg Sports Update.

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<v Speaker 3>Stay with us. More from Bloomberg day Break coming up

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<v Speaker 3>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 app. This is Bloomberg Daybreak.

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<v Speaker 2>Good morning, I'm Nathan Hager. An attack on a ship

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<v Speaker 2>in the Strait of Horror Moves is pointing to the

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<v Speaker 2>risk to Middle East shipping even with an interim peace

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<v Speaker 2>steal and effect between the US and Iran, President Trump

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<v Speaker 2>says the deal is still intact.

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<v Speaker 3>We knocked the hell out of them, and now we're

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<v Speaker 3>negotiating from a position of pure strike pier strength.

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<v Speaker 12>They know that, and the straits already and we're.

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<v Speaker 11>Setting records in this.

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<v Speaker 2>I was President Trump at a White House event with

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<v Speaker 2>farmers last night, joining us from Dubai this morning. Is

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<v Speaker 2>Bloomberg's head of Middle East coverage, Stuart Livingston. Wallace, Stuart,

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<v Speaker 2>what more do we know about this attack? What could

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<v Speaker 2>it mean for the negotiating position between the US and Iran?

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<v Speaker 5>Good morning, Good morning, Nathan. I mean, at the moment,

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<v Speaker 5>the details are not entirely clear. I mean specifically who

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<v Speaker 5>exactly carried out the attack, and as of now, no

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<v Speaker 5>one has really claimed responsibility for it. However, we can

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<v Speaker 5>read into it certain important points, which is, this ship

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<v Speaker 5>was traveling in the so called Southern Corridor, hugging the

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<v Speaker 5>coast of Oman, which is obviously the alternative route to

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<v Speaker 5>the Northern Passageway, which hugs the coast of Iran, and

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<v Speaker 5>therefore one might presume that it was perhaps a warning

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<v Speaker 5>of sorts not to use that southern route and to

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<v Speaker 5>stick to the one close to the Ranian coast. And

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<v Speaker 5>from that you can extrapolate that there is pressure from

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<v Speaker 5>Iran that it wants to maintain the control over hormones

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<v Speaker 5>and ultimately would like to extract a revenue stream from

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<v Speaker 5>all the ships that go through there every day, which

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<v Speaker 5>you know, we don't know quite what that toll would

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<v Speaker 5>look like, whether indeed it would be called a toll

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<v Speaker 5>or a fee, but we're talking about billions and billions

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<v Speaker 5>of dollars every year, you would presume in terms of

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<v Speaker 5>what that means for the negotiations, it's going to be

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<v Speaker 5>very difficult because so far the red line for the

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<v Speaker 5>US and for many of its allies and in even

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<v Speaker 5>most of the region has been that that the Strait

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<v Speaker 5>must remain an area of free passage for international commas.

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<v Speaker 2>And to that point, we heard from Secretary of State

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<v Speaker 2>Marco Rubio talking about the difficulties that he sees around

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<v Speaker 2>charging any kind of fees for whether it's tolling or

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<v Speaker 2>insurance or whatever you want to call it, through the

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<v Speaker 2>Strait of Hormones. But just sixty days to negotiate a

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<v Speaker 2>broader piece deal, could this situation the status of the

0:13:57.920 --> 0:14:02.439
<v Speaker 2>strait of hormones bog things down toward a more permanent deal.

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<v Speaker 5>Yeah, I mean absolutely, it's going to be a problem

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<v Speaker 5>going forward. I would say it's one of a number

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<v Speaker 5>of problems. I mean, it's probably the most pressing because

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<v Speaker 5>that's the one that's had the immediate impact on the

0:14:11.679 --> 0:14:15.000
<v Speaker 5>global economy far and wide, and will continue to do

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<v Speaker 5>so despite the recent drop in oil prices. You know,

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<v Speaker 5>we're a long way from going back to normal in

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<v Speaker 5>terms of global energy supply. But in terms of that

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<v Speaker 5>sixty day timeframe, I'm not sure how many people actually

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<v Speaker 5>believe that we'll get anything done in sixty days. The

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<v Speaker 5>last major nuclear agreement we had with Iran, the JCPOA,

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<v Speaker 5>took the better part of two years. Wasn't quite years,

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<v Speaker 5>but pretty much there. So I suppose in theory they

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<v Speaker 5>could use that as the basis of the current negotiations,

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<v Speaker 5>but that seems quite unlikely. So I think the expectation

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<v Speaker 5>is that will probably be extended. But then you add

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<v Speaker 5>to that all the huge problems on top of their

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<v Speaker 5>not just the nuclearile, not just hour moves, but also

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<v Speaker 5>the issue of ballistic missiles, of sanctions, of frozen assets,

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<v Speaker 5>support for It's a very very long list, and they're

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<v Speaker 5>all very very thorny issues.

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<v Speaker 2>And when it comes to this attack yesterday, Stuart, how

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<v Speaker 2>is it affecting traffic through the Strait of horror moves?

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<v Speaker 11>Now?

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<v Speaker 2>We had heard from the President that something like nineteen

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<v Speaker 2>million barrels of oil had gone through the Strait in

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<v Speaker 2>just one day. Is it starting to have an impact

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<v Speaker 2>on the level of flows through the Strait now?

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<v Speaker 5>It's very difficult to say, because it's always been a

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<v Speaker 5>little bit patchy, and a lot of the ships going

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<v Speaker 5>through continue to turn off their signals, which means that

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<v Speaker 5>often we don't discover that they've gone through until several

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<v Speaker 5>days later when they emerge somewhere in the Indian Ocean

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<v Speaker 5>or off the coast of somewhere quite far away. So

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<v Speaker 5>I can't really give you defind advance of What I

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<v Speaker 5>can say, which I think is difficult to argue against,

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<v Speaker 5>is that as far as the international shipping industry is concerned,

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<v Speaker 5>the fact that you can still get attack going through

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<v Speaker 5>there is going to make them very cautious about moving ships,

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<v Speaker 5>either in or route. And just one example, the International

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<v Speaker 5>Maritime Organized was working on an evacuation plan for the

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<v Speaker 5>hundreds of ships still stuck inside the Persian Gulf. As

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<v Speaker 5>of now, that's suspended because again they can't guarantee safety

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<v Speaker 5>coming through horror moves. So I think it's going to

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<v Speaker 5>be something that develops over the next several weeks. We'll

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<v Speaker 5>see if there are a further attacks, what the negotiations

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<v Speaker 5>look like. What's telling is that the Sultan of Oman

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<v Speaker 5>is going to be in France next week. I believe

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<v Speaker 5>and you presume that horr moves will be very high

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<v Speaker 5>on the agenda. I think the Omani position is going

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<v Speaker 5>to be critical here because they're obviously one of the

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<v Speaker 5>two countries that actually sits on that straight and to

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<v Speaker 5>some extent, can determine the outcome.

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