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.
Speaker 4: Karen, the ceasefire between the US and Iran has turned
Speaker 4: into a standoff over control of the crucial straight of
Speaker 4: horror moves. President Trump says the truce will stay in
Speaker 4: effect indefinitely until Iran comes to the table with a
Speaker 4: new peace proposal. White House Press Secretary Caroline Levitt says
Speaker 4: the President has no timetable.
Speaker 5: I know there's been some anonymous, sourced reporting that there
Speaker 5: was maybe a three to five day deadline.
Speaker 6: That is not true.
Speaker 5: The President has not set a deadline himself. Ultimately, he
Speaker 5: will dictate the timetable.
Speaker 4: Press Secretary Caroline Levitt at the White House. For its part,
Speaker 4: Iran says it has no immediate plans to take part
Speaker 4: in negotiations. Iran's president posted on social media that the
Speaker 4: US blockade and threats are main obstacles to diplomacy. Bloomberg's
Speaker 4: Juman has more from Dubai.
Speaker 7: You've still got two boockades in place. The strait is
Speaker 7: still not safe, and it is a deadlock between the
Speaker 7: two sides and the question here is whose side is
Speaker 7: time on, because the longer this goes on for the
Speaker 7: more you're going to see upper pressure on oil prices. Already,
Speaker 7: we're beginning to see that public There's been public backlash
Speaker 7: in the US against the war and against President Trump
Speaker 7: himself and his handling of the war. At the same time,
Speaker 7: President Trump also maintains that this is costing Iran five
Speaker 7: hundred millions dollars a day the blockades, and again we
Speaker 7: haven't been able to verify those numbers, but it is
Speaker 7: a battle of the wills here.
Speaker 4: Bloombergs Jumani Barsecci reports Iran is maintaining its own blockade,
Speaker 4: firing on ships and reportedly seizing at least two of them.
Speaker 4: The Washington Post reports the Pentagon told Congress this week
Speaker 4: that clearing minds from the Strait of hormones could take
Speaker 4: up to six months.
Speaker 3: Nathan, With the war still unrigolved, there's been another high
Speaker 3: profile shake up at the Pentagon. Maybe Secretary John Feelin
Speaker 3: has been fine, and we get more with the Bloomberg
Speaker 3: Deputy Washington Bureau Chief Laura Davison.
Speaker 8: Just earlier this month, it was a dispute about promoting
Speaker 8: specific generals that was the top uniformed officer at the
Speaker 8: Army and just yesterday the top civilian leader at the Navy. Also,
Speaker 8: after clashing with Stephen Finberg, who's the Deputy Defense Secretary
Speaker 8: in Pete Heggs at the Defense Secretary over shipbuilding priorities
Speaker 8: also was asked to resign.
Speaker 3: Bloomberg's Laura Davison reports fhelanz Auster is not expected to
Speaker 3: affect Navy operations around the Strait of Horror moves. He's
Speaker 3: being temporarily replaced by Under Secretary Honk how Well.
Speaker 4: Meanwhile, Karen Treasury Secretary Scott Besson has told lawmakers many
Speaker 4: Persian Gulf allies and some Asian nations have requested foreign
Speaker 4: exchange swap lines with the US. We get more from
Speaker 4: Bloomberg Zamy Morris in Washington.
Speaker 6: Swap lines allow one nation to deploy the currency of
Speaker 6: another as needed to address liquidity demands. During his testimony
Speaker 6: before the Senate Appropriation Subcommittee, Treasury Secretary bess And told
Speaker 6: lawmakers that Persian Gulf allies are asking for swap lines
Speaker 6: with the US.
Speaker 9: Swap lines, whether it's from the Federal Reserve or the Treasury,
Speaker 9: are to maintain order in the dollar funding markets and
Speaker 9: to prevent the sale of US assets in a disorderly way.
Speaker 6: Besant also pointed to the potential for swaplines to support
Speaker 6: dollar denominated lending overseas. In Washington, Amy Morris Bloomberg Radio.
Speaker 3: Right, Amy, thank you. On Capitol Hill, the Senate worked
Speaker 3: through the night into this morning to take a first
Speaker 3: step to reopen the Department of Homeland Security. Republicans approved
Speaker 3: a seventy billion dollar budget plan to fund ice and
Speaker 3: border patrol through a process that requires no Democratic votes.
Speaker 3: Democrats proposed a series of amendments focused on lowering healthcare
Speaker 3: and other costs.
Speaker 2: The bill now heads to the House.
Speaker 3: Where Speaker Mike Johnson can't afford to lose just two
Speaker 3: Republicans to pass the narrow spending plan. Some Republicans are
Speaker 3: pushing him to go for an even bigger affordability ahead
Speaker 3: of November's midterms.
Speaker 4: Let's turn to the markets now, Karen. A record setting
Speaker 4: rally is taking a pause right now, as peace talks
Speaker 4: in the Middle East remain in limbo. The S and
Speaker 4: P five hundred is coming off another record close. It
Speaker 4: has now gained more than nine percent this month, and
Speaker 4: the Nasdaq one hundred also closed at an all time high.
Speaker 2: Oil is on the rise as well.
Speaker 4: West Texas Intermediate's up about two and a half percent
Speaker 4: at ninety five dollars thirty four cents of barrel Brent
Speaker 4: is at one hundred and four to fifty.
Speaker 2: That's a gain of two and a half percent.
Speaker 3: Nathan Tesla unveiling plans for a massive ramp up in
Speaker 3: spending on AI and robotics. The electric car maker says
Speaker 3: capital expenditure will triple to more than twenty five billion dollars.
Speaker 3: CEO Elon Moscow line the expansion plan during the earnings call.
Speaker 10: I think you've seen most, if not all, certainly the
Speaker 10: major technology companies substantially increasing their CAPO investments and U
Speaker 10: and we're going to be doing the same. I think
Speaker 10: it's uh, it's just going to pay off in a
Speaker 10: very big way.
Speaker 3: That's CEO Elon Musk, who spoke as Tesla for the
Speaker 3: second quarter in a row, announced better than expected earnings
Speaker 3: and shares of Tesla. They're down three point two percent
Speaker 3: in early trading.
Speaker 4: And the earning sprey continues today, Karen, with more than
Speaker 4: thirty companies reporting, including chip maker Intel. Bloomberg's Tom Busby
Speaker 4: has a preview.
Speaker 11: Keifer investors Intel's efforts to restore its technological edge and
Speaker 11: benefit from the extraordinary demand for all things AI related.
Speaker 11: Also of note any update on Intel's admission three months
Speaker 11: ago that it hadn't devoted enough production to server chips
Speaker 11: and at that time was not able to meet all
Speaker 11: the orders that came in. Bloomberg consensus calls for revenue
Speaker 11: of twelve point three six billion dollars, more than half
Speaker 11: of that from client computing, on adjusted earnings for share
Speaker 11: of one cent and Intel shares of about eighty percent
Speaker 11: so far this year.
Speaker 2: Tom Busby, Bloomberg Radio.
Speaker 3: All right, Tom, thank you well. It's been quite a
Speaker 3: run for Intel and the rest of the chip stocks.
Speaker 3: In fact, it's been a historic one. The Philadelphia Semiconductor
Speaker 3: Index is now gained for a record sixteen straight sessions.
Speaker 3: It's up thirty percent in April and set for its
Speaker 3: second best month ever that was set in two thousand
Speaker 3: and We.
Speaker 4: May see more gains today. Karen Texas Instruments gave a
Speaker 4: surprisingly strong forecast, helped by booming spending on data centers
Speaker 4: and industrial equipment. Those shares are up more than ten
Speaker 4: percent in early trading well.
Speaker 3: On the flip side, software related stocks are under pressure
Speaker 3: this morning. Nathan shares of IBM there down seven and
Speaker 3: a half percent. Big Blue it posted quarterly sales and
Speaker 3: its software unit now we're in line with estimates, but
Speaker 3: that's failing to shake investor concerns about AI disruption to
Speaker 3: its business. Shares of service now they're also lower, down
Speaker 3: more than thirteen percent. The provider of software for business
Speaker 3: Task reported results that disappointed investors and said some sales
Speaker 3: deals have been delayed by the war in the Middle East.
Speaker 4: Well, Microsoft is making a deal Karen, announcing its biggest
Speaker 4: ever investment in austral pledging to spend almost eighteen billion
Speaker 4: dollars by the end of twenty twenty nine as it
Speaker 4: pushes deeper into the artificial intelligence market in the Asia, Pacific.
Speaker 3: And Robinhood markets. Nathan expanding its global footprint. The financial
Speaker 3: technology company has received an initial regulatory stamp of approval
Speaker 3: in Singapore to offer brokerage services. Robinhood first announced it
Speaker 3: would be expanding into Asia and December twenty twenty four,
Speaker 3: eyeing Singapore for its headquarters. Time now for look at
Speaker 3: some of the other stories making news in New York
Speaker 3: and around the world. And for that we're joined by
Speaker 3: Bloomberg's Michael Barr Michael, good Morning, Good.
Speaker 12: Morning, Karen. Health Secretary Robert F. Kennedy Junior concluded a
Speaker 12: marathon of budget hearings with federal lawmakers on Capitol Hill.
Speaker 12: Kennedy was grilled on the country's worst measles outbreak in decades.
Speaker 12: This heated exchange was between Kennedy and Democratic Senator at
Speaker 12: Lisa Blunt Rochester of Delaware.
Speaker 6: Does the President know there is a historic measle surge
Speaker 6: occurring nationwide?
Speaker 2: You want me to answer the question. It's just a
Speaker 2: very simple question.
Speaker 6: Yes, grandstand.
Speaker 3: You're going to get your opportunity on.
Speaker 2: A grant stand, can you answer? You can answer that question. Yes,
Speaker 2: just started before I came answer.
Speaker 6: I'm there's oportunity to answer the question.
Speaker 3: Does the President know there is a historic measle surge
Speaker 3: occurring nationwide?
Speaker 9: I'm sure he does.
Speaker 12: In response to bipartisan concerns about funding reductions, Kennedy said
Speaker 12: they were painful. Officials in West Virginia say two people
Speaker 12: were killed after a chemical leak at a plant just
Speaker 12: west of Charleston. More than a dozen others, including seven
Speaker 12: EMS workers responding to the leak were sent to the hospital.
Speaker 12: Governor Patrick Morsey the.
Speaker 6: Families of those we lost today, our hearts are with
Speaker 6: you and are State griefs for you. We stand ready
Speaker 6: to support you in every way possible.
Speaker 12: State officials say all shelter in place orders have been lifted.
Speaker 12: Georgia's Democratic Congressman David Scott has died at a eighty
Speaker 12: Scott was the first black chairman of the House Agriculture
Speaker 12: Committee and was seeking his thirteenth term in Congress. Scott's
Speaker 12: death creates a sudden fifth vacancy in the Chamber amid
Speaker 12: three resignations just this month. Until special elections are held
Speaker 12: to fill the empty seats, there will be two hundred
Speaker 12: eighteen Republicans and two hundred twelve Democrats in the House.
Speaker 12: Global news twenty four hours a day and whenever you
Speaker 12: want it with Bloomberg News Now. I'm Michael Barr, and
Speaker 12: this is Bloomberg.
Speaker 11: Hearron, Well, thanks Michael.
Speaker 3: All time now for our Bloomberg Sports update, and for
Speaker 3: that we bring in John Stashauer.
Speaker 1: That's during the NFL Draft again tonight in Pittsburgh. The
Speaker 1: Las Vegas Raiders set to take Indiana quarterback Fernando Mendoza
Speaker 1: first overall. He led the Hoosers the national championship, and
Speaker 1: he won the Heisman Trophy. The top seeds of the
Speaker 1: NBA Playoffs both won at home. That's Oklahoma City beat
Speaker 1: Phoenix once twenty to one oh seven. The Shay Gilgess
Speaker 1: Alexander scored thirty seven of the Thunder lead the series
Speaker 1: two to nothing. Detroit, after losing Game one to Orlando,
Speaker 1: was tied at halftime, pulled away in the third to
Speaker 1: the Pistons beat.
Speaker 2: The Magic ninety eight eighty three a to Bloomberg Sports Update.
Speaker 3: Stay with us more from Bloomberg day Break coming up
Speaker 3: after this.
Speaker 11: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
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Speaker 11: Bloomberg Business app.
Speaker 2: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.
Speaker 4: The ceasefire between the US and Iran has turned into
Speaker 4: a standoff over control of the Strait of Horror Moves.
Speaker 4: President Trump has said the truce could go on indefinitely,
Speaker 4: while hinting talks could happen this week. White House spokeswoman
Speaker 4: Caroline Levitt says, the timing is up to the president.
Speaker 5: He is satisfied with the naval blockade, and he understands
Speaker 5: that Iran is in a very weak position and the
Speaker 5: cards are in President Trump's hands right now.
Speaker 4: Press Secretary Caroline Levitt at the White House for more.
Speaker 4: We're joined by Bloomberg opinion columnist Mark Champion. Mark, it's
Speaker 4: good to have you with us. Where do things stand
Speaker 4: on this morning of what appears to be an indefinite
Speaker 4: truth between the US and Iran?
Speaker 2: Good morning, Yes, So you know.
Speaker 13: We are in a place where we, you know, just
Speaker 13: don't know whether the war will resume. It seems clear
Speaker 13: that neither side really wants that, and therefore you have
Speaker 13: this kind of standoff, overhauled moves, and the great difficulty
Speaker 13: in going back to talks because their positions are so
Speaker 13: distant from each other, and that runs from your homers.
Speaker 13: It's homos itself and the control of hormos that the
Speaker 13: Iranians want after the war. The Americans obviously do not
Speaker 13: want that, nor do their allies in the Gulf. And
Speaker 13: then you have the nuclear file, you have but listed missiles,
Speaker 13: you have the whole range of things that we're under
Speaker 13: discussion before the war or at least the US wanted
Speaker 13: to be under discussion, and are still unresolved. Essentially, you know,
Speaker 13: the Iranians are still able to fire missiles, ballistic missiles,
Speaker 13: they are they still have a nuclear program, badly damaged,
Speaker 13: but it exists and they have not given up the
Speaker 13: principle that they'll keep it. So, you know, we're really
Speaker 13: in this place where everything remains unresolved. The war has
Speaker 13: not achieved US goals. It's done enormous damage to the
Speaker 13: Uranian state and to its economy, and we're now in
Speaker 13: a standoff, and the question is who can.
Speaker 4: Last longer well as this standoff continues, Mark, what's the
Speaker 4: potential economic impact. We've heard reports that just clearing the
Speaker 4: minds that Iran has laid through the and around the
Speaker 4: Strait of Hormus could take up to six months.
Speaker 13: Yes, so you know, for now, you know, the oil
Speaker 13: price is up again above one hundred dollars. That's a
Speaker 13: you know, a significant increase from before the war. But
Speaker 13: it is quite manageable for you know, parts of the
Speaker 13: global economy. Certainly for the US it's a political issue,
Speaker 13: but it's a it's a manageable issue for the US.
Speaker 13: Economy much harder in Asia, which relies very heavily on
Speaker 13: the Gulf for its oil, and there the issue is
Speaker 13: just the you know, physical supply that about ten percent
Speaker 13: of the world's supply has been taken off the market,
Speaker 13: and that is a very significant problem in Asia, which
Speaker 13: is the biggest consumer of Gulf oil, not so much
Speaker 13: for the US, which consumes rather little. It's just affected
Speaker 13: by you know, global price trends. So it's you know,
Speaker 13: it's it is uncertain. The Iranians will also be hard hit,
Speaker 13: but they are still getting some tankers through the US blockade.
Speaker 13: Whether that is the US turning a blind eye because
Speaker 13: they don't want this to become an existential issue that
Speaker 13: prompts the Iranians to carry through on their threats to
Speaker 13: attack energy infrastructure in the Gulf, or whether they simply
Speaker 13: aren't able to control these ships once they turn off
Speaker 13: their black boxes. It's not quite clear yet, but you know,
Speaker 13: it will it will take a toll on both sides.
Speaker 3: This is Bloomberg Daybreak, your morning podcast on the stories
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