Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning.
Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 3: stories we're following today. Karen, we begin with the latest
Speaker 3: on the war with Iran. The US is preparing for
Speaker 3: unprecedented economic isolation measures against Tehran. Treasury Secretary Scott Bessen
Speaker 3: says it's part of the Trump administration's effort to squeeze
Speaker 3: the regimes finances.
Speaker 4: The kinectic war ended after several weeks and we went
Speaker 4: from epic fury to economic fury, and at the President's orders,
Speaker 4: we have raised the level even again and watched the
Speaker 4: space for more announcements coming next week, because we are
Speaker 4: going to apply measures like have never been seen in
Speaker 4: the history of economic isolation on a country.
Speaker 5: And Treasury secretaries got best and told Newsmax the economic
Speaker 5: pressure will be part of a one to two punch
Speaker 5: that includes the continued blockade of Iran sports. The Iranian
Speaker 5: economy has taken a major hit, industrial capacity is damaged,
Speaker 5: and crude oil exports have been severely curtailed by the blockade.
Speaker 3: Well Oil rose Nathan after the US threatened to impose
Speaker 3: the economic measures against their run and checking prices now,
Speaker 3: Nimex Screwede oil is up one and a half percent
Speaker 3: at eighty two dollars forty nine cents of barrel Brent
Speaker 3: is at one percent at eighty seven dollars ninety two cents.
Speaker 3: Francisco Blanche, head of Commodity research at Bank of America,
Speaker 3: says dwindling inventories are a concern.
Speaker 6: Last six months, right, we've had this massive negative supply
Speaker 6: shocking oil and may people are surprised that it hasn't
Speaker 6: created a collapse in economic activity. But part of the
Speaker 6: reason is we have very high inventories. We've lost about
Speaker 6: twelve to thirteen hundred million barrels of oil as a
Speaker 6: result of Iran war. About two thirds of that gap
Speaker 6: has been met by inventories, which means GDP rules has
Speaker 6: only come down maybe thirty forty bases globally as opposed
Speaker 6: to one two three percent, So we can play that
Speaker 6: game for a little longer, but we're getting close to.
Speaker 3: The end of the rope, and Bank of America is.
Speaker 3: Francisco Blanche's comments come as Bloomberg reports supertankers are going
Speaker 3: dark for longer to get oil through the strait of
Speaker 3: forren moves and the bab Elmandeb straight doubling down on
Speaker 3: tactics honed in the early days of the Around War.
Speaker 5: It's staying with geopolitics, Karen. The Trump administration is downposing
Speaker 5: tariffs of up to one hundred percent on imported drones
Speaker 5: and drone components as it seeks to reduce reliance on
Speaker 5: foreign suppliers. Smaller drones will face a twenty five percent duty,
Speaker 5: while even lower rates will apply to some trading partners,
Speaker 5: including the European Union, Japan, and the UK. The move
Speaker 5: risks accelerating a decoupling with China. It is the world's
Speaker 5: biggest drone maker, and US drone exports from China have
Speaker 5: been cut in half in the first half of this year.
Speaker 3: Well, let's turn to bonds now, Nathan. There was a
Speaker 3: decent demand from buyers as the US sold thirty year
Speaker 3: government dead yesterday, but the Treasury had to offer a
Speaker 3: yield above five point two percent to sell twenty five
Speaker 3: billion dollars of bonds. That's the highest rate since two
Speaker 3: thousand and one. Bloomberg Intelligence is chief US interest rates
Speaker 3: strategist Ira Jersey says years of elevated inflation and deficit
Speaker 3: fueld spending add to the strain on government finances.
Speaker 7: The US Treasury now is competing with other countries worldwide.
Speaker 7: Whereas for the better part of two decades, we were
Speaker 7: the highest yielding developed market liquid bomb market in the world.
Speaker 7: That's just not the case anymore.
Speaker 3: There is competition, and Ira Jersey with Bloomberg Intelligence says
Speaker 3: concerns over paying down government debt will grow as debt
Speaker 3: to GDP rises. The US spent close to one point
Speaker 3: two trillion dollars on debt interest so far this fiscal year,
Speaker 3: of fifteen percent from a year ago.
Speaker 5: And Karen Global stocks are headed for a third straight
Speaker 5: weekly gain. Amid optimism over the AI trade and cooling
Speaker 5: inflation bowlstring bets. The FED won't have to raise interest rates,
Speaker 5: but some officials are raising the alarm about sticky inflation.
Speaker 5: Cleveland FED President Beth Hammick, one of the three dissenters
Speaker 5: at last month's meeting, doesn't have confidence that recent signs
Speaker 5: of an inflation slow down will continue.
Speaker 8: We've gotten two recent reports on the inflation side that
Speaker 8: are definitely better than the earlier five months that we've
Speaker 8: had this year, and so it's welcome. I love to
Speaker 8: see that those numbers are coming in lower. That's a
Speaker 8: good thing, but I don't have confidence that we're going
Speaker 8: to continue to see that, or that we're going to
Speaker 8: see them low enough that it's going to bring us
Speaker 8: back down to that two percent number.
Speaker 5: And an event that the Dayton Area Chamber of Commerce,
Speaker 5: Cleveland FED chief Beth Hammick reiterated her call to raise
Speaker 5: rates now.
Speaker 3: May then there's still a disagreement among FED officials. Richmond
Speaker 3: FED President Tom Barkin argued to hold interest rates steady
Speaker 3: due to signs that inflation is declining. Speaking in South
Speaker 3: Carolina yesterday, Barkin said elevated inflation is coming from tariff
Speaker 3: and war shocks, which should pass. He acknowledged the risk
Speaker 3: that some price pressures could become embedded, forcing officials to
Speaker 3: tighten policy.
Speaker 5: In tech news this morning, Karen Sources tell Bloomberg that
Speaker 5: open ai is on track to generate more than forty
Speaker 5: billion dollars in annualized revenue that would roughly double its
Speaker 5: run rate from the end of last year. Bloomberg Markets
Speaker 5: editor Sam Unstead says the momentum strengthens open AI's case
Speaker 5: for a future Wall Street debut, as competition with anthropic intensifies.
Speaker 9: The thing to keep in mind with these two with
Speaker 9: Open AI aanthropic as well, that pair of them are
Speaker 9: kind of trading off at the moment and bolstering their
Speaker 9: own strengths and bolstering up their plans for an IPO
Speaker 9: later in the year for each company, and both IPOs
Speaker 9: expected to be enormous steels. So as they come up
Speaker 9: to that, I think you're likely to hear much more
Speaker 9: of this of how strong these businesses are, how good
Speaker 9: the revenue run rates, and then how good the outlooks
Speaker 9: are as well.
Speaker 5: And Bloomberg sam Unstead says Opening Eyes growth is being
Speaker 5: driven by AI coding tools, subscriptions, and a small but
Speaker 5: growing ad business.
Speaker 3: Nathan Elon mus Steak and SpaceX is valued at nearly
Speaker 3: nine hundred and seven billion dollars based on the company's
Speaker 3: latest share price must Calendar forty eight point four percent
Speaker 3: Steak and SpaceX as of June thirtieth, according to a
Speaker 3: regulatory filing, but says some shares only vest on crazy
Speaker 3: good outcomes. Despite owning less than a half of SpaceX's
Speaker 3: economic equity, Musk retains more than eighty two percent of
Speaker 3: the company's voting power and.
Speaker 5: Karen reddits set to join the S and P five
Speaker 5: hundred before this started trading on Tuesday. It's part of
Speaker 5: an off cycle change. The social media site will replace
Speaker 5: avalon Bay communities on the index. Right now, Reddit shares
Speaker 5: are up twelve and a half percent pre market.
Speaker 3: And legal news. Luigi Maggioni is expected to plead guilty
Speaker 3: Nathan to resolve federal charges relating to the fatal shooting
Speaker 3: of United Healthcare CEO Brian Thompson and begin more with
Speaker 3: a Bloomberg Law host June Grosso.
Speaker 10: Sources tell Bloomberg that prosecutors will recommend that Mangioni serve
Speaker 10: life in prison. The plea would come at a hearing,
Speaker 10: said after federal prosecutors and defense lawyers jointly requested one.
Speaker 10: Court records did not identify the purpose of the hearing.
Speaker 10: The twenty eight year old Mangioni is facing both federal
Speaker 10: and New York state charges over the shooting of Thompson
Speaker 10: in December of twenty twenty four outside of miss Town,
Speaker 10: Manhattan Hotel. June Grosso Bloomberg Radio June thanks.
Speaker 5: Los Angeles Dodgers owner Mark Walters offered to pledge his
Speaker 5: stake in Goggenheim Partners as collateral to secure loans for
Speaker 5: his TWG Global Holding company. The firm's been exploring deals
Speaker 5: with investors to clean up loans on the insurer's balance
Speaker 5: sheet that have drawn scrutiny from federal prosecutors.
Speaker 2: Sources tell Bloomberg.
Speaker 5: Proceeds from Walter's recent sale of the Los Angeles Lakers
Speaker 5: will help accelerate twg's efforts to clean up that balance sheet.
Speaker 3: And finally, Nathan, twenty twenty six is projected to become
Speaker 3: the world's hottest year ever. That's according to the nonprofit
Speaker 3: Berkeley Earth. An unusually powerful El Nino weather phase is
Speaker 3: raising the odds that this year will surpass twenty twenty
Speaker 3: four before twenty twenty seven sets a new high time.
Speaker 3: Now for look at some of the other stories making
Speaker 3: news in New York and around the world, and for
Speaker 3: that we're joined by Bloomberg's John Tucker.
Speaker 2: John, Good morning, Yeah, Good morning, Karen.
Speaker 11: New York City's piet of tear tax is back on
Speaker 11: for now. The story this morning from Bloomberg's Charlie Pellett, The.
Speaker 12: Rollout of New York's pietaire tax can proceed after an
Speaker 12: appeals Court in Brooklyn temporarily put a hold on a
Speaker 12: Staten Island judge's order blocking the plan. The court stayed
Speaker 12: the restraining order that was issued earlier in the week
Speaker 12: in a lawsuit filed by a group of homeowners. The
Speaker 12: tax was signed into law in May by Governor Hochel
Speaker 12: and to targets single family homes worth five million dollars
Speaker 12: or more and department's worth one million dollars or more.
Speaker 12: In New York, Charlie Pellett Bloomberg Radio.
Speaker 11: Defense Secretary Pete Hagsith is pushing back in reports for
Speaker 11: The Military Times that outlines deteriorating conditions of where the
Speaker 11: USS Abraham Lincoln completely misrepresented.
Speaker 2: Listen, we make sure at every ship, every crew, every.
Speaker 7: Captain has everything we can provide them at every single moment.
Speaker 11: The Lincoln is deployed as part of combat operations in
Speaker 11: the Mideast. The ship has been two hundred and fifty
Speaker 11: days at sea. The report at ledges at least one
Speaker 11: sailor attempted to go overboard. Set Democrats say they've heard
Speaker 11: of safety concerns, water contamination, and shortage of basic supplies.
Speaker 11: More storms heading the Midwest overnight in areas that have
Speaker 11: already been hammered over the last couple of days. Thunderstorms
Speaker 11: into this morning may create rainfall rates of up to
Speaker 11: two inches per hour. Harvard University has one dismissal of
Speaker 11: a federal lawsuit claiming it had turned a blonde blind
Speaker 11: eye to anti Semitism and discrimination against Jews and Israelis.
Speaker 11: US District Judge Richard Stearns ruled the Justice Department didn't
Speaker 11: sustain its claims that Harvard violated a civil rights law.
Speaker 11: At President of Trump plans to highlight his record on
Speaker 11: crime and safety during a visit to New York today,
Speaker 11: where he's going to release new FBI crime statistics. Trump
Speaker 11: is visiting Nassau County's police academy. The visit aimed at
Speaker 11: boosting Republican candidate Republican Bruce Blakeman. Global News twenty four
Speaker 11: hours a day and whenever you wanted Bloomberg News. Now,
Speaker 11: I'm John Tucker. This is Bloomberg.
Speaker 3: Karen Nks John Time now for our Bloomberg Sports update,
Speaker 3: and for that we bring in on Stash Hour.
Speaker 2: Thanks Gary on baseball for the third time.
Speaker 1: Hell Day Field the Dreams game in Dyersville, Iowa. Tribute
Speaker 1: to the nineteen eighty nine movie and twenty six Hall
Speaker 1: of Famers emerged from the cornfield before the game. The
Speaker 1: Phillies then beat the Twins seven to one. Kyle Schwarber
Speaker 1: hit two home runs. Anel Division leaders met in la
Speaker 1: and Milwaukee with three runs of the night, thenning and
Speaker 1: beat the Dodgers five to four, five way time for
Speaker 1: the lead after the first round of the Saint Jude
Speaker 1: Golf in Memphis includes Jordan's Sweet Scottie Scheffler trails by three.
Speaker 2: That's your Bloomberg Sports Uptate.
Speaker 3: Stay with us more from Bloomberg day Break coming up
Speaker 3: after this.
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Speaker 2: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.
Speaker 5: As the impass continues with a run over the strait
Speaker 5: of hormones, the Trump Administration's leaning even further into economic
Speaker 5: pressure to try to get terror to bend. Treasury Secretary
Speaker 5: Scott Besson says, quote watch this space for even more announcements.
Speaker 2: Next week will be.
Speaker 4: A combination of economic isolation like the world has never
Speaker 4: seen before and the continued blockade in the straight of
Speaker 4: horror move.
Speaker 5: That was Treasury Secretary Scott Besson in an interview on
Speaker 5: Newsmax and joining us this morning from Dubai is the
Speaker 5: head of Middle East coverage for Bloomberg News, Stuart Livingston Wallace, Stuart,
Speaker 5: it's going to speak with you again this morning. I
Speaker 5: know Secretary Besson didn't reveal his cards much in terms
Speaker 5: of what that economic isolation could look like, but do
Speaker 5: we have a sense of what the Trump administration could
Speaker 5: be considering on top of what it's already imposed on Iran?
Speaker 13: Good morning, Yeah, good morning, Nathan. I'm going to that
Speaker 13: last bit is a very good point. This is a
Speaker 13: country that's been under sanctions for forty plus years. It
Speaker 13: is arguably well, it's certainly one of the most sanctioned
Speaker 13: countries in the world. It was probably overtaken by Russia
Speaker 13: a couple of years ago, but it's kind of up there.
Speaker 13: So the remaining options, we think are probably something along
Speaker 13: the lines of ado banking, cryptocurrencies, maybe even secondary sanctions,
Speaker 13: that is the third parties they trade with Iran. But
Speaker 13: the reality is is a dwindling number of countries that
Speaker 13: are prepared to do that trade precisely because of the threat.
Speaker 13: You know that they themselves will be damaged economically and sanctioned.
Speaker 13: So it's clear that the intention here is to squeeze
Speaker 13: Iran even further. But again, even on that point, it
Speaker 13: has to be acknowledged that Iran's economy is in pretty
Speaker 13: diastrates as it is. You know, you've basically got hyperinflation,
Speaker 13: You've got rolling blackouts across the country because they can't
Speaker 13: maintain the grid. Again, very difficult to get trade in
Speaker 13: or out. But we also know that Iran's had a
Speaker 13: lot of practice and is quite skilled at evading sanctions.
Speaker 13: But it'd be interesting to see what comes next week,
Speaker 13: for sure.
Speaker 5: And to that point, the fact that Iran has managed
Speaker 5: to weather so much of this pressure all this time,
Speaker 5: we've heard from Iran's military that it's reorganizing its leadership
Speaker 5: to be more agile and aggressive for potentially preparing for
Speaker 5: protracted conflict in the Middle East. What does that say
Speaker 5: about what Ron's thinking might be right now?
Speaker 13: I mean, it does seem to be the same playbook.
Speaker 13: I have to say that it's something surprising to sort
Speaker 13: of hear that they're you know, changing their stance to
Speaker 13: a more aggressive posture when you know, particularly for those
Speaker 13: of us living in the Gulf. I mean, I think
Speaker 13: the last several months have you know, could only be
Speaker 13: characterized as quite aggressive in terms of the thousands of
Speaker 13: missiles and drones that we fired, you know, across the Gulf.
Speaker 13: Having said that, I mean, it's clear that their viewers
Speaker 13: that they have gained unexpected leverage in a way that
Speaker 13: I don't think even they were expecting. And I'm talking
Speaker 13: specifically here about poor moons and buy and from that
Speaker 13: obviously a stranglehold over energy flows and other commodities to
Speaker 13: the global economy, and they're not willing to give that up.
Speaker 13: So I think what we're seeing for the US administration is, yes,
Speaker 13: you're going to have the pressure of the blockade, and
Speaker 13: that is for sure curbing Yourn's ability to get its
Speaker 13: own oil out, but at the same time continuing to
Speaker 13: squeeze it economically, and between those two things, hopefully pushing
Speaker 13: Iran into some sort of concession, particularly when it comes
Speaker 13: to moves. But on that much wider raft of issues,
Speaker 13: including nuclear proxies, missiless on it, it's a very very
Speaker 13: hot list.
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