WEBVTT - US Strikes Iran Bridges; Trump Vows 50% Tariff on Canada

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

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<v Speaker 2>Good morning, I'm Karen Moscow and I'm Alexis christopherus. Here

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<v Speaker 2>are the stories we're following today.

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<v Speaker 3>Alexis, we begin with the latest developments in the Middle East.

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<v Speaker 3>The US and Iran have exchanged strikes for a tenth

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<v Speaker 3>consecutive day. The escalation comes as mediators try to revive

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<v Speaker 3>a truce. Bloomberg's Zanda Wood said, the straight up ramous

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<v Speaker 3>is the focal point of the latest fighting.

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<v Speaker 4>Basically, the current situation that we've had since the signing

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<v Speaker 4>of the memorandum understanding in June is that both countries

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<v Speaker 4>are trying to control Hormus. Iman realizes that Hermus is

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<v Speaker 4>his main leverage and needs to keep control of it,

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<v Speaker 4>and the US is trying to weaken, event in control

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<v Speaker 4>over the Strait of Hormus and prevent or maybe even

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<v Speaker 4>get ready for future closures.

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<v Speaker 1>And that's where we are now.

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<v Speaker 3>Bloombergsanda Wood said. The Iran backed who these say they

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<v Speaker 3>would impose a maritime blockade on Saudi Arabia, putting at

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<v Speaker 3>risk the flow of millions of barrels that the kingdom

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<v Speaker 3>exports via the Red Sea.

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<v Speaker 2>And Karen Oil has surged about twenty percent since the

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<v Speaker 2>June seventeenth, the cord between the US and Iran unraveled,

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<v Speaker 2>and it could go even higher. Goldman sacks as Brent

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<v Speaker 2>could rally to more than one hundred and twenty dollars

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<v Speaker 2>a barrel by the fourth quarter if disruptions to the

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<v Speaker 2>Strait of Rimouz persist. Checking oil right now, we've got

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<v Speaker 2>Brent crude at about eighty eight to eighty a barrel,

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<v Speaker 2>down four tenths of a percent, WTI crewed down half

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<v Speaker 2>a percent at eighty two eighty one a barrel Alexis.

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<v Speaker 3>We're also keeping an eye on global trade. The Trump

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<v Speaker 3>administration is threatening to impose new tariffs on Canada. Bloombergh.

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<v Speaker 3>John Tucker joins us with more John, good morning.

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<v Speaker 5>Good morning Karen. It is a big escalation, fifty percent

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<v Speaker 5>terras on things like milk, plywood, and some very Canadian

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<v Speaker 5>the items like hockey equipment and beer. There will be

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<v Speaker 5>no exemptions for exporters shipping under the rules of the

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<v Speaker 5>existing North American trade pack, but the Trumpet dedllustration says

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<v Speaker 5>this is the result of Canada's unfair treatment of certain

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<v Speaker 5>US goods. It was said to take a fact in

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<v Speaker 5>thirty days, and this further strained relations with America's second

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<v Speaker 5>largest trading partner. Well last week, President Trump, you recall

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<v Speaker 5>threatened hire tariff to punish Canada for wildfire smoke, with

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<v Speaker 5>tarifs being applied under section three point thirty eight of

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<v Speaker 5>the nineteen thirty Tariff Act. That provision has never been

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<v Speaker 5>used before. I'm John Tucker, Bloomberg Radio.

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<v Speaker 2>All right, thanks John, and US UK relations are also

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<v Speaker 2>when the spotlight. This morning, President Trump has reached out

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<v Speaker 2>to new UK Prime Minister Andy Burnham. Let's go to

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<v Speaker 2>London now and get the very latest from Bloomberg's un

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<v Speaker 2>Potts ew in. Good Morning, Alexis and Karen.

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<v Speaker 6>Andy Burnham began his first full day in Number ten

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<v Speaker 6>Downing Street with an announcements on the cost of living

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<v Speaker 6>at tax cuts on energy bills. We're still awaiting details

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<v Speaker 6>of any changes to foreign policy, but the new UKPM

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<v Speaker 6>has already spoken to the leader of the country's most

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<v Speaker 6>important ally. We're told that Burnham rereshaw President Trump the

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<v Speaker 6>defense and secure he is at the top of his agenda.

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<v Speaker 6>The US President also backed himself an invitation for another

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<v Speaker 6>visit to the UK, this time for the g twenty

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<v Speaker 6>summit set to be held in Manchester, where Burnham was

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<v Speaker 6>mayor in London. I'm ewing pots Bloomberg.

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<v Speaker 3>Radio, Right you and thanks. Back here in the US,

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<v Speaker 3>Arizona Republicans are heading to the polls today to choose

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<v Speaker 3>a nominated challenge Democratic Governor Katie Hobbs in November. Bloomberg's

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<v Speaker 3>Amy Morris supports from Washington.

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<v Speaker 7>Two Arizona congressmen are vying for the Republican gubernatorial nomination.

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<v Speaker 7>Five term US Representative Andy Biggs is a former chair

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<v Speaker 7>of the House Freedom Caucus and has President Trump's backing.

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<v Speaker 7>Eight term US Representative David Schweikert is giving up his

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<v Speaker 7>competitive swing district seat after narrowly winning against strong Democratic

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<v Speaker 7>challenges in the past three elections. Now, voters across the

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<v Speaker 7>state will set the general election matchups for House seats

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<v Speaker 7>and state and local offices, but Arizona's governorship is a

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<v Speaker 7>top takeover opportunity for Republicans in Washington. Amy Morris Bloomber Radio.

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<v Speaker 2>Thanks Amy. Let's turn to the markets now, where tech

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<v Speaker 2>stocks are leading futures higher. Nasdaq futures are up about

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<v Speaker 2>one and a third percent. Yesterday was another volatile session

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<v Speaker 2>after rising as much as three quarters of a percent.

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<v Speaker 2>The S and P five hundred finished the day lower.

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<v Speaker 2>Lori Calvasina is the head of US equity strategy at

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<v Speaker 2>RBC Capital Markets.

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<v Speaker 8>Look, we have an eighty one fifty target over the

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<v Speaker 8>next twelve months. I'm so sort of a mid twenty

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<v Speaker 8>twenty seven number at this point, but we have never

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<v Speaker 8>said that it was going to get there in a

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<v Speaker 8>straight line, and so we have been looking for pullbacks

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<v Speaker 8>that would be frankly no worse than five to ten percent.

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<v Speaker 2>RBC Capital Markets. Lori Calvasena's S and P five hundred

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<v Speaker 2>price target is about ten percent above current levels.

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<v Speaker 3>Karen Alexis Taiwan Semiconductor is raising prices Nikeyasias reporting TSMC

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<v Speaker 3>will boost prices for advanced and mature chip production services

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<v Speaker 3>by up to ten percent and twenty twenty seven. TSMC

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<v Speaker 3>and of their chip makers are grappling with the soaring

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<v Speaker 3>cost of items employed in production, including materials, equipment and power, and.

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<v Speaker 2>The London Stock Exchange will introduce non stop trading next year.

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<v Speaker 2>The els SE will open a new venue outside of

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<v Speaker 2>its regular market hours, and a move to offer near

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<v Speaker 2>continuous trading in the working week. The new offering, which

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<v Speaker 2>will be called LSEE twenty four, will operate from five

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<v Speaker 2>pm until seven fifty am in London. It's expected to

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<v Speaker 2>be ready for client testing by the end of the year.

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<v Speaker 3>In company news, ALECSU say federal judge has granted a

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<v Speaker 3>request to pause the Paramount skuid danced takeover of Warner

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<v Speaker 3>Brothers Discovery for two weeks, saying it likely violates antitrust law.

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<v Speaker 3>California and eleven other states opposing the transaction won a

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<v Speaker 3>trial in April next year. Chris Paul Mary is covering

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<v Speaker 3>the story for Bloomberg.

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<v Speaker 9>This deal's already been improved by the Justice Department. It's

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<v Speaker 9>widely expected to get the blessing of regulators in Europe

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<v Speaker 9>this week. This puts all of that on hold, and

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<v Speaker 9>just to really further up the pressure, if this deal

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<v Speaker 9>doesn't close by the end of September, Paramount has to

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<v Speaker 9>pay Warner Brothers shareholders potentially hundreds of millions of dollars

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<v Speaker 9>a quarter in centrally late fees.

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<v Speaker 3>Bloomberg's Chris Paul Mary says Paramount argues the deal as

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<v Speaker 3>a head win for Hollywood and will provide much needed

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<v Speaker 3>competition against tech.

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<v Speaker 2>Giants and Karen. Visits to Taco Bell locations have plummeted

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<v Speaker 2>following a parasite outbreak that authorities linked to Lettuce sold

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<v Speaker 2>by one of the company's suppliers, Plaster AI says foot

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<v Speaker 2>traffic on Friday was about nineteen percent below the daily average.

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<v Speaker 2>The outbreak is also having a broader impact on the

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<v Speaker 2>restaurant industry, with chains like Chop, Chipotle, and Panera Bread

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<v Speaker 2>experiencing declines in traffic as well. Five oh seven on

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<v Speaker 2>Wall Street Time Now for a look at some of

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<v Speaker 2>the other stories making news in New York and around

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<v Speaker 2>the world. For that, we're joined by Bloomberg's Michael Barr

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<v Speaker 2>Good Morning, Michael.

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<v Speaker 10>Good morning, and Lexis. In New York City, a former

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<v Speaker 10>US Army soldier has been arrested after igniting a fire

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<v Speaker 10>in front of a Manhattan federal building. Authorities say the suspect,

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<v Speaker 10>Andrew Arabaca, allegedly shot a pellet gun and set off fireworks.

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<v Speaker 10>The FBI says Arabaca made several anti government and anti

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<v Speaker 10>ice statements during the incident, and was described as an

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<v Speaker 10>anti American, anti government extremist. FBI New York Assistant Director

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<v Speaker 10>James barnicle.

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<v Speaker 3>He had two axes, a hammer, a machete, and three knives.

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<v Speaker 10>Three people suffered minor injuries. A fourth person has died.

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<v Speaker 10>As New York City deals with recent outbreak of Legionaire's

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<v Speaker 10>disease on Manhattan's Upper east Side, the Health Department says

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<v Speaker 10>seventy six people have been diagnosed with the disease, seven

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<v Speaker 10>remain hospitalized. Tropical Storm Berthup is slowly beginning to grow

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<v Speaker 10>around one hundred miles south of the Florida Coast. City

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<v Speaker 10>officials and New Orleans are beginning their preparations ahead of

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<v Speaker 10>a possible landfall Wednesday. The Orlean Sewage and Waterboard Executive

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<v Speaker 10>director Randy Hayman, we will continue to monitor conditions around

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<v Speaker 10>the clock and do everything we can to remain transparent

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<v Speaker 10>and provide information to you so that you can protect

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<v Speaker 10>yourself and your families. Officials throughout the region urging people

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<v Speaker 10>to stay out of the water as the storm could

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<v Speaker 10>produce high surf and dangerous rip currents. Intense heat across

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<v Speaker 10>eastern Texas is challenging the state grids all time power

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<v Speaker 10>demand record. Preliminary estimates from the Electric Reliability Console of

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<v Speaker 10>Texas show demand late Monday afternoon near the more than

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<v Speaker 10>eighty five point fifty gigawatts record set in August of

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<v Speaker 10>twenty twenty three. Global news twenty four hours a day

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<v Speaker 10>and whenever you want it with the Bloomberg News.

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<v Speaker 5>Now.

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<v Speaker 10>I'm Michae Labarr and this is Bloomberg.

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<v Speaker 3>Thanks Michael all 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 11>The Red Sox have been foundering all season. They fired

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<v Speaker 11>their one time World Series winning manager, Alex Cora. They

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<v Speaker 11>had not had a winning streak of more than three

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<v Speaker 11>games all season, and now suddenly the Red Sox have

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<v Speaker 11>won fourteen games in a row. They pulled out a

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<v Speaker 11>six to five win over Baltimore. If they win again tonight,

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<v Speaker 11>it ties the club record for longest winning street. There'll

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<v Speaker 11>be a new athletic director at Michigan, Ward Manual the

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<v Speaker 11>job for ten years and now he's leaving at the

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<v Speaker 11>end of the year. There have been off field issues

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<v Speaker 11>at Michigan. That's a Bloomberg Sports update.

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<v Speaker 2>Stay with us. More from Bloomberg Day Break coming up after.

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

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

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<v Speaker 1>the Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 3>Thank good morning. I'm Karen Moscow alongside Alexis Christopherish and

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<v Speaker 3>the US and Iran exchange strikes for a tenth consecutive day.

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<v Speaker 3>It comes as mediators work to revive at truce and

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<v Speaker 3>as the hoothy militant group in Yemen threatened shipping in

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<v Speaker 3>the Red Sea. Meanwhile, and the US Democratic Senators planned

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<v Speaker 3>to once again force a vote on an around war

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<v Speaker 3>powers resolution this week. And here's Senate Minority Leader Chuck Schumer.

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<v Speaker 12>On Thursday, Trump insisted to the nation that we're winning

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<v Speaker 12>the big, winning big in Iran and you'll see the

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<v Speaker 12>fruits of that labor very very shortly. But instead and said,

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<v Speaker 12>we saw three more brave American service members tragically lose

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<v Speaker 12>their will lives over the weekend because of Trump's reckless

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<v Speaker 12>war in Iran.

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<v Speaker 3>And that's an a Minority Leader Chuck Schumer. We want

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<v Speaker 3>to get the very latest now on the fighting with

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<v Speaker 3>Bloomberg Middle Aged Breaking News editor Dana Creage and Dana,

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<v Speaker 3>good morning. So we did say a tenth straight day

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<v Speaker 3>of strikes on Iran, what do we know about these

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<v Speaker 3>latest attacks from the US.

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<v Speaker 13>Good morning. Yes, So the US and Iran have continued

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<v Speaker 13>these attacks and tit for tad if you want the

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<v Speaker 13>US to strike in Iran, and Tehran is retaliating against

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<v Speaker 13>what it says are US interests US basis and places

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<v Speaker 13>like Kuwait, Badin, and Jordan, which has been the case

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<v Speaker 13>for the past several days, especially these strict countries. Baden

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<v Speaker 13>sounded alarm saying they intercepted aerial tacks. Jordan said it

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<v Speaker 13>intercepted drones and missiles, And of course we saw what

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<v Speaker 13>happened over the weekend in Kuwait saying a energy facility

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<v Speaker 13>was targeted there as well as a power desalination plant,

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<v Speaker 13>and that was of course in response to what Iran

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<v Speaker 13>said was US attacks all the same things, so they're

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<v Speaker 13>kind of keeping in in similar attacks. So whatever the

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<v Speaker 13>US attacks, then Aroun would attack in these different countries.

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<v Speaker 13>And yesterday, as you mentioned, we saw the mediators trying

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<v Speaker 13>to de escalate and bring the two back to perhaps

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<v Speaker 13>the status quote that existed even before the MU was signed.

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<v Speaker 13>US official that we have on background said that you know,

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<v Speaker 13>Trump is currently focused on punishing Iran for attacking ships

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<v Speaker 13>in the Strait and that the strikes will continue until

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<v Speaker 13>the president chooses a different course of action. But again

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<v Speaker 13>that US official said, the diplomatic efforts to end that

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<v Speaker 13>were continuing around s interior ministries in Pakistan today in

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<v Speaker 13>a Pakistan Kota out of course the two interior mediators

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<v Speaker 13>who are helping to de escalate, and they're the ones

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<v Speaker 13>who secured that MoU a few weeks ago. So still

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<v Speaker 13>not clear what the mediators have come to and whether

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<v Speaker 13>there is as we've seen reports of some ten days ceasefire.

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<v Speaker 13>This is very early to see and perhaps the two

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<v Speaker 13>the US and Iran are not you eager to immediately

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<v Speaker 13>cease fire right now, but to do this tit for

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<v Speaker 13>tat kind of like a managed conflict. So it's not

0:12:20.720 --> 0:12:23.520
<v Speaker 13>an all out war, but it's it's a managed conflict,

0:12:23.920 --> 0:12:26.000
<v Speaker 13>especially in Hormos well.

0:12:26.040 --> 0:12:28.439
<v Speaker 3>Also an issue, as we know, is the straight of

0:12:28.480 --> 0:12:31.560
<v Speaker 3>horror news horror moves. The UK Navy also reporting some

0:12:31.600 --> 0:12:35.400
<v Speaker 3>strikes on two vessels in the Strait, so that still

0:12:35.440 --> 0:12:39.520
<v Speaker 3>remains an active area as well, doesn't it exactly?

0:12:39.600 --> 0:12:42.920
<v Speaker 13>And you know we're seeing more tankers coming under attacks,

0:12:42.960 --> 0:12:47.800
<v Speaker 13>oil tankers even and consequently means traffic has declined significantly

0:12:47.880 --> 0:12:52.680
<v Speaker 13>there So in the week ending July nineteen, Hormos crossings

0:12:53.160 --> 0:12:56.679
<v Speaker 13>average seven tankers each day, and that's compared with sixteen

0:12:56.720 --> 0:12:59.720
<v Speaker 13>per day a week earlier. That's according to SMP Global

0:12:59.800 --> 0:13:03.840
<v Speaker 13>enter So we're seeing this, you know, Hormos is being

0:13:04.160 --> 0:13:08.040
<v Speaker 13>deserted even even further, and tankers are probably going to

0:13:08.120 --> 0:13:10.920
<v Speaker 13>look for some sort of assurance that they can pass

0:13:11.000 --> 0:13:14.040
<v Speaker 13>through and not come under attack from Iran.

0:13:14.760 --> 0:13:18.800
<v Speaker 3>So if the Hoothies imposed this maritime blockage on Saudi

0:13:18.880 --> 0:13:22.199
<v Speaker 3>Arabia which we heard about as well yesterday, and we're

0:13:22.240 --> 0:13:24.440
<v Speaker 3>having all of this going on still in the straight

0:13:24.480 --> 0:13:26.760
<v Speaker 3>of horror MOUs, what kind of impact could this have

0:13:26.840 --> 0:13:27.640
<v Speaker 3>on the oil market.

0:13:28.640 --> 0:13:31.440
<v Speaker 13>Of course, that will compound whatever we are in right

0:13:31.480 --> 0:13:35.319
<v Speaker 13>now and send oil prices soaring if they do disrupt

0:13:35.320 --> 0:13:38.199
<v Speaker 13>and if they do carry out the so called maritime

0:13:38.240 --> 0:13:41.760
<v Speaker 13>blockade on Saudi Arabia, that would translate to disrupting Saudi

0:13:41.760 --> 0:13:44.719
<v Speaker 13>shipping via Red Sea through Bab and Mendeb. They can

0:13:44.840 --> 0:13:47.439
<v Speaker 13>do that, as we've seen the Healthies do right in

0:13:47.920 --> 0:13:51.360
<v Speaker 13>since October seven, twenty twenty three, in support of you know,

0:13:51.400 --> 0:13:53.880
<v Speaker 13>the Milton Group Hamas So they did that and were

0:13:53.960 --> 0:13:58.040
<v Speaker 13>able to do that, and if that happens today or

0:13:58.160 --> 0:14:00.760
<v Speaker 13>this week, then you know, oil vis are going to

0:14:00.800 --> 0:14:04.560
<v Speaker 13>shoot up. They're going to soar, and that means Saudi

0:14:04.600 --> 0:14:09.520
<v Speaker 13>Arabia's main export route will be disrupted, and that's about

0:14:09.559 --> 0:14:12.559
<v Speaker 13>you know, four a million barrels a day will also

0:14:12.640 --> 0:14:15.600
<v Speaker 13>be caught out of the market. Saudi Arabit did say

0:14:15.640 --> 0:14:19.080
<v Speaker 13>that they will protect their own ships and condemn the

0:14:19.120 --> 0:14:22.200
<v Speaker 13>hopees for you know, those allegations and of course the

0:14:22.600 --> 0:14:25.360
<v Speaker 13>maritime blockade. But it remains to be seen how this

0:14:25.440 --> 0:14:28.200
<v Speaker 13>will play out. But of course the market is definitely

0:14:28.240 --> 0:14:29.400
<v Speaker 13>watching this very closely.

0:14:31.120 --> 0:14:34.520
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