WEBVTT -  Deadlock in US-Iran Peace Talks; Navy Secretary Fired

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

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<v Speaker 2>Good morning.

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<v Speaker 3>I'm Nathan Hager and I'm Karen Moscow. Here are the

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

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<v Speaker 4>Karen, the ceasefire between the US and Iran has turned

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<v Speaker 4>into a standoff over control of the crucial straight of

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<v Speaker 4>horror moves. President Trump says the truce will stay in

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<v Speaker 4>effect indefinitely until Iran comes to the table with a

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<v Speaker 4>new peace proposal. White House Press Secretary Caroline Levitt says

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<v Speaker 4>the President has no timetable.

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<v Speaker 5>I know there's been some anonymous, sourced reporting that there

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<v Speaker 5>was maybe a three to five day deadline.

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<v Speaker 6>That is not true.

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<v Speaker 5>The President has not set a deadline himself. Ultimately, he

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<v Speaker 5>will dictate the timetable.

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<v Speaker 4>Press Secretary Caroline Levitt at the White House. For its part,

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<v Speaker 4>Iran says it has no immediate plans to take part

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<v Speaker 4>in negotiations. Iran's president posted on social media that the

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<v Speaker 4>US blockade and threats are main obstacles to diplomacy. Bloomberg's

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<v Speaker 4>Juman has more from Dubai.

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<v Speaker 7>You've still got two boockades in place. The strait is

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<v Speaker 7>still not safe, and it is a deadlock between the

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<v Speaker 7>two sides and the question here is whose side is

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<v Speaker 7>time on, because the longer this goes on for the

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<v Speaker 7>more you're going to see upper pressure on oil prices. Already,

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<v Speaker 7>we're beginning to see that public There's been public backlash

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<v Speaker 7>in the US against the war and against President Trump

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<v Speaker 7>himself and his handling of the war. At the same time,

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<v Speaker 7>President Trump also maintains that this is costing Iran five

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<v Speaker 7>hundred millions dollars a day the blockades, and again we

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<v Speaker 7>haven't been able to verify those numbers, but it is

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<v Speaker 7>a battle of the wills here.

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<v Speaker 4>Bloombergs Jumani Barsecci reports Iran is maintaining its own blockade,

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<v Speaker 4>firing on ships and reportedly seizing at least two of them.

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<v Speaker 4>The Washington Post reports the Pentagon told Congress this week

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<v Speaker 4>that clearing minds from the Strait of hormones could take

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<v Speaker 4>up to six months.

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<v Speaker 3>Nathan, With the war still unrigolved, there's been another high

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<v Speaker 3>profile shake up at the Pentagon. Maybe Secretary John Feelin

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<v Speaker 3>has been fine, and we get more with the Bloomberg

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<v Speaker 3>Deputy Washington Bureau Chief Laura Davison.

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<v Speaker 8>Just earlier this month, it was a dispute about promoting

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<v Speaker 8>specific generals that was the top uniformed officer at the

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<v Speaker 8>Army and just yesterday the top civilian leader at the Navy. Also,

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<v Speaker 8>after clashing with Stephen Finberg, who's the Deputy Defense Secretary

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<v Speaker 8>in Pete Heggs at the Defense Secretary over shipbuilding priorities

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<v Speaker 8>also was asked to resign.

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<v Speaker 3>Bloomberg's Laura Davison reports fhelanz Auster is not expected to

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<v Speaker 3>affect Navy operations around the Strait of Horror moves. He's

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<v Speaker 3>being temporarily replaced by Under Secretary Honk how Well.

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<v Speaker 4>Meanwhile, Karen Treasury Secretary Scott Besson has told lawmakers many

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<v Speaker 4>Persian Gulf allies and some Asian nations have requested foreign

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<v Speaker 4>exchange swap lines with the US. We get more from

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<v Speaker 4>Bloomberg Zamy Morris in Washington.

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<v Speaker 6>Swap lines allow one nation to deploy the currency of

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<v Speaker 6>another as needed to address liquidity demands. During his testimony

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<v Speaker 6>before the Senate Appropriation Subcommittee, Treasury Secretary bess And told

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<v Speaker 6>lawmakers that Persian Gulf allies are asking for swap lines

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<v Speaker 6>with the US.

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<v Speaker 9>Swap lines, whether it's from the Federal Reserve or the Treasury,

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<v Speaker 9>are to maintain order in the dollar funding markets and

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<v Speaker 9>to prevent the sale of US assets in a disorderly way.

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<v Speaker 6>Besant also pointed to the potential for swaplines to support

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<v Speaker 6>dollar denominated lending overseas. In Washington, Amy Morris Bloomberg Radio.

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<v Speaker 3>Right, Amy, thank you. On Capitol Hill, the Senate worked

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<v Speaker 3>through the night into this morning to take a first

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<v Speaker 3>step to reopen the Department of Homeland Security. Republicans approved

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<v Speaker 3>a seventy billion dollar budget plan to fund ice and

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<v Speaker 3>border patrol through a process that requires no Democratic votes.

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<v Speaker 3>Democrats proposed a series of amendments focused on lowering healthcare

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<v Speaker 3>and other costs.

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<v Speaker 2>The bill now heads to the House.

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<v Speaker 3>Where Speaker Mike Johnson can't afford to lose just two

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<v Speaker 3>Republicans to pass the narrow spending plan. Some Republicans are

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<v Speaker 3>pushing him to go for an even bigger affordability ahead

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<v Speaker 3>of November's midterms.

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<v Speaker 4>Let's turn to the markets now, Karen. A record setting

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<v Speaker 4>rally is taking a pause right now, as peace talks

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<v Speaker 4>in the Middle East remain in limbo. The S and

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<v Speaker 4>P five hundred is coming off another record close. It

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<v Speaker 4>has now gained more than nine percent this month, and

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<v Speaker 4>the Nasdaq one hundred also closed at an all time high.

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<v Speaker 2>Oil is on the rise as well.

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<v Speaker 4>West Texas Intermediate's up about two and a half percent

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<v Speaker 4>at ninety five dollars thirty four cents of barrel Brent

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<v Speaker 4>is at one hundred and four to fifty.

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<v Speaker 2>That's a gain of two and a half percent.

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<v Speaker 3>Nathan Tesla unveiling plans for a massive ramp up in

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<v Speaker 3>spending on AI and robotics. The electric car maker says

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<v Speaker 3>capital expenditure will triple to more than twenty five billion dollars.

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<v Speaker 3>CEO Elon Moscow line the expansion plan during the earnings call.

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<v Speaker 10>I think you've seen most, if not all, certainly the

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<v Speaker 10>major technology companies substantially increasing their CAPO investments and U

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<v Speaker 10>and we're going to be doing the same. I think

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<v Speaker 10>it's uh, it's just going to pay off in a

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<v Speaker 10>very big way.

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<v Speaker 3>That's CEO Elon Musk, who spoke as Tesla for the

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<v Speaker 3>second quarter in a row, announced better than expected earnings

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<v Speaker 3>and shares of Tesla. They're down three point two percent

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<v Speaker 3>in early trading.

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<v Speaker 4>And the earning sprey continues today, Karen, with more than

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<v Speaker 4>thirty companies reporting, including chip maker Intel. Bloomberg's Tom Busby

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<v Speaker 4>has a preview.

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<v Speaker 11>Keifer investors Intel's efforts to restore its technological edge and

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<v Speaker 11>benefit from the extraordinary demand for all things AI related.

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<v Speaker 11>Also of note any update on Intel's admission three months

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<v Speaker 11>ago that it hadn't devoted enough production to server chips

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<v Speaker 11>and at that time was not able to meet all

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<v Speaker 11>the orders that came in. Bloomberg consensus calls for revenue

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<v Speaker 11>of twelve point three six billion dollars, more than half

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<v Speaker 11>of that from client computing, on adjusted earnings for share

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<v Speaker 11>of one cent and Intel shares of about eighty percent

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<v Speaker 11>so far this year.

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<v Speaker 2>Tom Busby, Bloomberg Radio.

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<v Speaker 3>All right, Tom, thank you well. It's been quite a

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<v Speaker 3>run for Intel and the rest of the chip stocks.

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<v Speaker 3>In fact, it's been a historic one. The Philadelphia Semiconductor

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<v Speaker 3>Index is now gained for a record sixteen straight sessions.

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<v Speaker 3>It's up thirty percent in April and set for its

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<v Speaker 3>second best month ever that was set in two thousand

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<v Speaker 3>and We.

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<v Speaker 4>May see more gains today. Karen Texas Instruments gave a

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<v Speaker 4>surprisingly strong forecast, helped by booming spending on data centers

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<v Speaker 4>and industrial equipment. Those shares are up more than ten

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<v Speaker 4>percent in early trading well.

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<v Speaker 3>On the flip side, software related stocks are under pressure

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<v Speaker 3>this morning. Nathan shares of IBM there down seven and

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<v Speaker 3>a half percent. Big Blue it posted quarterly sales and

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<v Speaker 3>its software unit now we're in line with estimates, but

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<v Speaker 3>that's failing to shake investor concerns about AI disruption to

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<v Speaker 3>its business. Shares of service now they're also lower, down

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<v Speaker 3>more than thirteen percent. The provider of software for business

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<v Speaker 3>Task reported results that disappointed investors and said some sales

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<v Speaker 3>deals have been delayed by the war in the Middle East.

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<v Speaker 4>Well, Microsoft is making a deal Karen, announcing its biggest

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<v Speaker 4>ever investment in austral pledging to spend almost eighteen billion

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<v Speaker 4>dollars by the end of twenty twenty nine as it

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<v Speaker 4>pushes deeper into the artificial intelligence market in the Asia, Pacific.

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<v Speaker 3>And Robinhood markets. Nathan expanding its global footprint. The financial

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<v Speaker 3>technology company has received an initial regulatory stamp of approval

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<v Speaker 3>in Singapore to offer brokerage services. Robinhood first announced it

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<v Speaker 3>would be expanding into Asia and December twenty twenty four,

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<v Speaker 3>eyeing Singapore for its headquarters. Time now for look at

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<v Speaker 3>some of the other stories making news in New York

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<v Speaker 3>and around the world. And for that we're joined by

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<v Speaker 3>Bloomberg's Michael Barr Michael, good Morning, Good.

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<v Speaker 12>Morning, Karen. Health Secretary Robert F. Kennedy Junior concluded a

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<v Speaker 12>marathon of budget hearings with federal lawmakers on Capitol Hill.

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<v Speaker 12>Kennedy was grilled on the country's worst measles outbreak in decades.

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<v Speaker 12>This heated exchange was between Kennedy and Democratic Senator at

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<v Speaker 12>Lisa Blunt Rochester of Delaware.

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<v Speaker 6>Does the President know there is a historic measle surge

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<v Speaker 6>occurring nationwide?

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<v Speaker 2>You want me to answer the question. It's just a

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<v Speaker 2>very simple question.

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<v Speaker 6>Yes, grandstand.

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<v Speaker 3>You're going to get your opportunity on.

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<v Speaker 2>A grant stand, can you answer? You can answer that question. Yes,

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<v Speaker 2>just started before I came answer.

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<v Speaker 6>I'm there's oportunity to answer the question.

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<v Speaker 3>Does the President know there is a historic measle surge

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<v Speaker 3>occurring nationwide?

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<v Speaker 9>I'm sure he does.

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<v Speaker 12>In response to bipartisan concerns about funding reductions, Kennedy said

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<v Speaker 12>they were painful. Officials in West Virginia say two people

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<v Speaker 12>were killed after a chemical leak at a plant just

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<v Speaker 12>west of Charleston. More than a dozen others, including seven

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<v Speaker 12>EMS workers responding to the leak were sent to the hospital.

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<v Speaker 12>Governor Patrick Morsey the.

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<v Speaker 6>Families of those we lost today, our hearts are with

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<v Speaker 6>you and are State griefs for you. We stand ready

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<v Speaker 6>to support you in every way possible.

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<v Speaker 12>State officials say all shelter in place orders have been lifted.

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<v Speaker 12>Georgia's Democratic Congressman David Scott has died at a eighty

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<v Speaker 12>Scott was the first black chairman of the House Agriculture

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<v Speaker 12>Committee and was seeking his thirteenth term in Congress. Scott's

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<v Speaker 12>death creates a sudden fifth vacancy in the Chamber amid

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<v Speaker 12>three resignations just this month. Until special elections are held

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<v Speaker 12>to fill the empty seats, there will be two hundred

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<v Speaker 12>eighteen Republicans and two hundred twelve Democrats in the House.

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<v Speaker 12>Global news twenty four hours a day and whenever you

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<v Speaker 12>want it with Bloomberg News Now. I'm Michael Barr, and

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<v Speaker 12>this is Bloomberg.

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<v Speaker 11>Hearron, Well, thanks Michael.

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<v Speaker 3>All time now for our Bloomberg Sports update, and for

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<v Speaker 3>that we bring in John Stashauer.

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<v Speaker 1>That's during the NFL Draft again tonight in Pittsburgh. The

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<v Speaker 1>Las Vegas Raiders set to take Indiana quarterback Fernando Mendoza

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<v Speaker 1>first overall. He led the Hoosers the national championship, and

0:09:43.920 --> 0:09:46.559
<v Speaker 1>he won the Heisman Trophy. The top seeds of the

0:09:46.679 --> 0:09:49.760
<v Speaker 1>NBA Playoffs both won at home. That's Oklahoma City beat

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<v Speaker 1>Phoenix once twenty to one oh seven. The Shay Gilgess

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<v Speaker 1>Alexander scored thirty seven of the Thunder lead the series

0:09:54.480 --> 0:09:57.560
<v Speaker 1>two to nothing. Detroit, after losing Game one to Orlando,

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<v Speaker 1>was tied at halftime, pulled away in the third to

0:10:00.400 --> 0:10:01.240
<v Speaker 1>the Pistons beat.

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<v Speaker 2>The Magic ninety eight eighty three a to 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 11>Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

0:10:17.559 --> 0:10:20.400
<v Speaker 11>and around the world on Bloomberg dot Com and the

0:10:20.440 --> 0:10:21.600
<v Speaker 11>Bloomberg Business app.

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<v Speaker 2>This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.

0:10:24.880 --> 0:10:27.360
<v Speaker 4>The ceasefire between the US and Iran has turned into

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<v Speaker 4>a standoff over control of the Strait of Horror Moves.

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<v Speaker 4>President Trump has said the truce could go on indefinitely,

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<v Speaker 4>while hinting talks could happen this week. White House spokeswoman

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<v Speaker 4>Caroline Levitt says, the timing is up to the president.

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<v Speaker 5>He is satisfied with the naval blockade, and he understands

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<v Speaker 5>that Iran is in a very weak position and the

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<v Speaker 5>cards are in President Trump's hands right now.

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<v Speaker 4>Press Secretary Caroline Levitt at the White House for more.

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<v Speaker 4>We're joined by Bloomberg opinion columnist Mark Champion. Mark, it's

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<v Speaker 4>good to have you with us. Where do things stand

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<v Speaker 4>on this morning of what appears to be an indefinite

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<v Speaker 4>truth between the US and Iran?

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<v Speaker 2>Good morning, Yes, So you know.

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<v Speaker 13>We are in a place where we, you know, just

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<v Speaker 13>don't know whether the war will resume. It seems clear

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<v Speaker 13>that neither side really wants that, and therefore you have

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<v Speaker 13>this kind of standoff, overhauled moves, and the great difficulty

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<v Speaker 13>in going back to talks because their positions are so

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<v Speaker 13>distant from each other, and that runs from your homers.

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<v Speaker 13>It's homos itself and the control of hormos that the

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<v Speaker 13>Iranians want after the war. The Americans obviously do not

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<v Speaker 13>want that, nor do their allies in the Gulf. And

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<v Speaker 13>then you have the nuclear file, you have but listed missiles,

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<v Speaker 13>you have the whole range of things that we're under

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<v Speaker 13>discussion before the war or at least the US wanted

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<v Speaker 13>to be under discussion, and are still unresolved. Essentially, you know,

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<v Speaker 13>the Iranians are still able to fire missiles, ballistic missiles,

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<v Speaker 13>they are they still have a nuclear program, badly damaged,

0:12:16.280 --> 0:12:18.400
<v Speaker 13>but it exists and they have not given up the

0:12:18.440 --> 0:12:22.520
<v Speaker 13>principle that they'll keep it. So, you know, we're really

0:12:22.679 --> 0:12:27.200
<v Speaker 13>in this place where everything remains unresolved. The war has

0:12:27.240 --> 0:12:30.880
<v Speaker 13>not achieved US goals. It's done enormous damage to the

0:12:31.000 --> 0:12:35.520
<v Speaker 13>Uranian state and to its economy, and we're now in

0:12:35.559 --> 0:12:37.800
<v Speaker 13>a standoff, and the question is who can.

0:12:37.720 --> 0:12:42.120
<v Speaker 4>Last longer well as this standoff continues, Mark, what's the

0:12:42.160 --> 0:12:46.720
<v Speaker 4>potential economic impact. We've heard reports that just clearing the

0:12:46.840 --> 0:12:49.720
<v Speaker 4>minds that Iran has laid through the and around the

0:12:49.720 --> 0:12:51.920
<v Speaker 4>Strait of Hormus could take up to six months.

0:12:53.840 --> 0:12:57.720
<v Speaker 13>Yes, so you know, for now, you know, the oil

0:12:58.640 --> 0:13:01.599
<v Speaker 13>price is up again above one hundred dollars. That's a

0:13:02.120 --> 0:13:05.360
<v Speaker 13>you know, a significant increase from before the war. But

0:13:05.440 --> 0:13:09.880
<v Speaker 13>it is quite manageable for you know, parts of the

0:13:09.920 --> 0:13:14.120
<v Speaker 13>global economy. Certainly for the US it's a political issue,

0:13:14.120 --> 0:13:17.400
<v Speaker 13>but it's a it's a manageable issue for the US.

0:13:17.520 --> 0:13:22.360
<v Speaker 13>Economy much harder in Asia, which relies very heavily on

0:13:22.400 --> 0:13:25.480
<v Speaker 13>the Gulf for its oil, and there the issue is

0:13:25.600 --> 0:13:28.920
<v Speaker 13>just the you know, physical supply that about ten percent

0:13:29.000 --> 0:13:32.440
<v Speaker 13>of the world's supply has been taken off the market,

0:13:33.080 --> 0:13:36.240
<v Speaker 13>and that is a very significant problem in Asia, which

0:13:36.280 --> 0:13:39.199
<v Speaker 13>is the biggest consumer of Gulf oil, not so much

0:13:39.240 --> 0:13:43.120
<v Speaker 13>for the US, which consumes rather little. It's just affected

0:13:43.120 --> 0:13:48.640
<v Speaker 13>by you know, global price trends. So it's you know,

0:13:48.840 --> 0:13:53.520
<v Speaker 13>it's it is uncertain. The Iranians will also be hard hit,

0:13:54.360 --> 0:13:58.600
<v Speaker 13>but they are still getting some tankers through the US blockade.

0:13:58.720 --> 0:14:02.600
<v Speaker 13>Whether that is the US turning a blind eye because

0:14:02.640 --> 0:14:07.640
<v Speaker 13>they don't want this to become an existential issue that

0:14:07.720 --> 0:14:11.360
<v Speaker 13>prompts the Iranians to carry through on their threats to

0:14:11.559 --> 0:14:17.520
<v Speaker 13>attack energy infrastructure in the Gulf, or whether they simply

0:14:17.559 --> 0:14:21.680
<v Speaker 13>aren't able to control these ships once they turn off

0:14:21.680 --> 0:14:26.320
<v Speaker 13>their black boxes. It's not quite clear yet, but you know,

0:14:26.480 --> 0:14:30.240
<v Speaker 13>it will it will take a toll on both sides.

0:14:32.160 --> 0:14:35.600
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