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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: This is the.

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Speaker 3: Bloomberg Day Baker at podcast. Good morning. It's Tuesday, the

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Speaker 3: fourteenth of July. I'm Caroline Hepka in London and.

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Speaker 1: I'm Stephen Caroline Brussels. Coming up today, President Trump is

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Speaker 1: said to notify US lawmakers that America is once again

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Speaker 1: at war with Iran. As hostilities escalate.

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Speaker 3: The US president demands a twenty percent hole Mouz cargo

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Speaker 3: fee worth about thirty million dollars for supertankers.

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Speaker 1: Plus cocaine hidden in bananas, Spanish royalty and US financiers.

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Speaker 1: The extraordinary tale of a drug bust that reads like

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Speaker 1: a Hollywood script.

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Speaker 4: Let's start with a roundup of our top stories.

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Speaker 1: The United States has carried out another round of strikes

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Speaker 1: on Iran after President Trump vowed to hit the country hard.

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Speaker 1: According to multiple reports, Trump also formerly notified Congress that

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Speaker 1: the US is once again at war with Iran. The declaration,

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Speaker 1: made in a letter dated the tenth of July, allows

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Speaker 1: the president sixty days to conduct military action without congressional approval.

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Speaker 1: Trump has also announced that he is reinstating the US

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Speaker 1: blockade of Iranian ships traveling through the Strait of Hormuz

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Speaker 1: from nine pm London time today.

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Speaker 5: And we're knocking out all of their offensive capability. And

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Speaker 5: we're controlling the Straits who're putting the blockade back. And

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Speaker 5: it's a blockade not for anybody but around. In other words,

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Speaker 5: anybody doing business with the rank can't go through. Everyone

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Speaker 5: else will be able to go through them.

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Speaker 1: Trump also vowed to keep up at tax on around,

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Speaker 1: telling reporters that strikes are targeting the country's capabilities for

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Speaker 1: anything having to do with the Strait.

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Speaker 3: The price of Brent crude has climbed back above eighty

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Speaker 3: five dollars a bow for the first time in a

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Speaker 3: month after news that the US blockade is being reimposed.

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Speaker 3: Speaking yesterday, President Trump also floated a proposal for a

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Speaker 3: twenty percent charge on cargo shipped through the Strait of

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Speaker 3: Hormuz based on current oil prices, that would amount to

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Speaker 3: more than thirty million dollars for a fully laden supertanker.

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Speaker 3: By contrast, sources tell us that Iran had been charging

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Speaker 3: up to two million dollars per voyage on an ad

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Speaker 3: hoc basis. We got more from Bloomberg's Washington correspondent Tyler Kendall.

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Speaker 6: I was just catching up with our analysts at Bloomberg

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Speaker 6: Economics that say that, as far as they can tell,

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Speaker 6: the president's post is inconsistent with international law. This also

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Speaker 6: would be a very high fee, if you will, higher

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Speaker 6: than what Iran is currently trying to charge when it

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Speaker 6: comes to transitting through the Strait of Removes. What is

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Speaker 6: very evident here, though, is that the White House's patients

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Speaker 6: has run incredibly thin, as we saw Sentcom over the

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Speaker 6: weekend to demand that Iran issue a statement saying that

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Speaker 6: the Strait of Removes has opened.

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Speaker 3: That analysis from Tyler Kendall comes as numerous sources in

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Speaker 3: the shipping industry have told Bloomberg that they were blindsided

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Speaker 3: by the announcement of a potential fee on cargoes transiting

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Speaker 3: the waterway. They said it was too early to know

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Speaker 3: what the plan would look like in practice or how

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Speaker 3: it might affect their decision on using the route.

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Speaker 1: Bond traders of ramped up bets and the Federal Reserve

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Speaker 1: hiking interest rates later this month ahead of US inflation

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Speaker 1: data and an appearance in FED chair Kevin Warsh. Markets

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Speaker 1: currently see around a forty percent chance of a rate

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Speaker 1: rise at this meeting, up from less than ten percent previously.

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Speaker 2: Speaking at the New.

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Speaker 1: York Association for Business Economics, Governor Christopher Waller said an

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Speaker 1: increase in rates may be necessary.

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Speaker 7: We get another hot reading on core inflation this week,

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Speaker 7: then the FMC will need to consider tightening monetary policy

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Speaker 7: in the near term. As always, we need to avoid

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Speaker 7: making the mistake of fighting the last war and reacting

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Speaker 7: too soon to tighten inflation.

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Speaker 1: While I went on to say monetary policy was at

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Speaker 1: a crossroads because of pressure from tariffs, energy prices and

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Speaker 1: the buildout of AI infrastructure, the market is pricing in

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Speaker 1: one FED rate hike by the end of this year,

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Speaker 1: second one by March of next year. Trailers are also

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Speaker 1: lifting ECB rate bets, fully pricing in a twenty five

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Speaker 1: basis point hike.

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Speaker 3: In September, EU ambassadors will meet today to try and

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Speaker 3: secure the block's latest delayed sanctions package against Russia. An

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Speaker 3: agreement to freeze the EU's price cap on Russian oil

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Speaker 3: has so far remained elusive. Separately, the UK Prime Minister

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Speaker 3: kits Darma spoke at his last meeting of the so

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Speaker 3: called Coalition of the Willing designed to support Ukraine.

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Speaker 8: I know that under my successor, the UK's commitment will

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Speaker 8: remain as strong as ever.

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Speaker 2: We will not waiver.

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Speaker 8: Ukraine is the defining cause of our times, but history

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Speaker 8: will record that we rose to this moment, and I

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Speaker 8: have no doubt that ultimately we will help secure the

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Speaker 8: peace that Vladimir and his people so justly deserve.

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Speaker 3: The UK is outgoing Prime Minister kist Starma speaking there

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Speaker 3: about vo A Linski. In the US, the White House

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Speaker 3: says that President Trump plans to support a Russian sanctions

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Speaker 3: bill championed by the late Senator Lindsey Graham.

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Speaker 1: In Switzerland and the UK are expanding their free trade

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Speaker 1: agreement to The two countries agreed to ease rules on

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Speaker 1: border checks, intellectual property rights, and data sharing. Britain's Business

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Speaker 1: Secretary Peter Kyle called it the most significant services trade

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Speaker 1: deal the UK has ever negotiated. UK says the deal

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Speaker 1: could boost the economy by five point two billion pounds

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Speaker 1: every year in the long run. The agreement has to

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Speaker 1: pass parliaments in both countries before it can come into effect.

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Speaker 3: As Rachel Reeves delivers what is expected to be her

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Speaker 3: final Mantion House speech as Chancellor, attention is already turning

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Speaker 3: to who could replace her. A Bloomberg service suggests that

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Speaker 3: investors see the Energy Secretary Ed Miliband as the least

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Speaker 3: market friendly contender for the job.

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Speaker 4: Bloomberg's Ferdie Fulston.

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Speaker 9: Reports Rachel Reeves wants to leave the city with a

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Speaker 9: simple message. Economic growth depends on stability, credibility and disciplined

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Speaker 9: public finances, but many in the square mile are already

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Speaker 9: focused on who will inherit those promises. Bloomberg's latest Markets

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Speaker 9: Live Pulse survey found former Health Secretary Where's streeting is

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Speaker 9: investors preferred choice to become Chancellor, while Energy Secretary Ed

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Speaker 9: Miliband ranked last among the leading contenders. Miliband has long

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Speaker 9: been viewed as the candidate most likely to pursue a

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Speaker 9: more interventionist, higher spending agenda, even though he's the bookmaker's

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Speaker 9: favorite to succeed Reefs. The Chancellor is expected to argue

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Speaker 9: that Labour's economic reforms can only succeed if Britain maintains

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Speaker 9: the confidence of financial markets in London. Freddie Fulston, Bloomberg Radio.

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Speaker 3: Those are our top stories for you this morning. Looking

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Speaker 3: at the market's oil advancing for a second day, brain

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Speaker 3: Crude futures are by one point nine percent, trading at

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Speaker 3: eighty four dollars ninety two, reignite inflation concerns, boosting bets

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Speaker 3: for interest rate hikes as the standoff between the US

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Speaker 3: and Iran intensifiers has also been a major move for

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Speaker 3: Japanese jgb's twenty eight bondials, falling eleven and a half

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Speaker 3: basis points, with some fresh comments from Japanese authorities. US

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Speaker 3: treasuries are steady ahead of the USCPI data that comes

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Speaker 3: out today. Ten year yield steady at four point six

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Speaker 3: two percent. In terms of what it means for equity markets,

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Speaker 3: we have seen another massively volatile day for the cospy,

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Speaker 3: which slumps as much as five point three percent at

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Speaker 3: one point. The taie exer also shed almost two and

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Speaker 3: a half percent, is currently though down by one point

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Speaker 3: eight percent. Stop futures for Europe are also down six

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Speaker 3: tenths of one percent.

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Speaker 4: That's the look at the markets.

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Speaker 1: In a moment, we'll bring you more in what one

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Speaker 1: thousand days of war in the Middle East since the

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Speaker 1: October seventh attacks is meant for the region, Plus the

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Speaker 1: Spanish cocaine bust that exposes links to Wall Street and

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Speaker 1: Dubai Real estate put another story that we've been reading

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Speaker 1: this morning about those who try to scam online scammers.

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Speaker 1: Rachel Sugar has been delving into this world for Bloomberg

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Speaker 1: Business Week. We all know that calls, emails, and text

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Speaker 1: mesters which appear to be from someone else, sometimes threatening,

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Speaker 1: sometimes pulling on emotional ties, but all very annoying at

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Speaker 1: the very least. But there's a community known as scambater's

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Speaker 1: online who try to waste scammers time or even try

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Speaker 1: and extract money from them with their own tricks. These

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Speaker 1: schemes also make very successful YouTube videos as it happens,

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Speaker 1: but Rachel reports that it can While it can help

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Speaker 1: authorities to catch some of the scammers, it's pretty rare.

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Speaker 1: It's not clear how effective this is, and actually one

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Speaker 1: of the people who does this, who Rachel spoke to,

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Speaker 1: describe it as a not very nice corner of the Internet.

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Speaker 1: But perhaps people are feeling so frustrated by some of

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Speaker 1: the deluge of mesters they get that they feel like

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Speaker 1: this is the best way to tackle it.

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Speaker 3: Yeah, I mean, have you ever been scammed? I certainly

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Speaker 3: had to look really closely at a couple of websites

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Speaker 3: that were purportedly selling ac units recently to that they

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Speaker 3: were scams, and then I went and looked up some

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Speaker 3: of the data. I mean, UK Finance reported just in

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Speaker 3: June that there was a record one point three billion

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Speaker 3: pounds that was lost to scammers in the UK last year.

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Speaker 3: I mean, the scams are getting so sophisticated. I cannot understand,

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Speaker 3: for the life for me, why it's not a kind

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Speaker 3: of higher national priority for for countries when so many

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Speaker 3: individuals are being scammed, and you know why, maybe the

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Speaker 3: websites don't have more responsibility.

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Speaker 4: I'm not sure.

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Speaker 1: Yeah, I mean, look at something else of that, I

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Speaker 1: I makes not a lot more complicated as well, So

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Speaker 1: the effectiveness of scam baiting also in question given that

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Speaker 1: technological development. Really interesting piece sole but a link to

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Speaker 1: it in our podcast show notes. But let's bring you

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Speaker 1: up to date with developments in the Iran war after

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Speaker 1: more strikes and President Trump's comments on the straight of Horror.

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Speaker 2: Mooz.

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Speaker 1: This is Boomberg has been examining how one thousand days

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Speaker 1: of war in the Middle East since the October seventh,

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Speaker 1: twenty twenty three attack on Israel of appended relations across

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Speaker 1: the region. Neil Monshi is our deputy managing editor for

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Speaker 1: the Middle East and Africa joins us. Now for more Nila. First, well,

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Speaker 1: let's start with the latest developments in the Iran war.

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Speaker 1: How significant is this latest escalation and what effect could

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Speaker 1: I have.

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Speaker 10: You could see that it's pretty significant. You guys spoke

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Speaker 10: about the impact on the oil price on markets. You

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Speaker 10: can see people are taking it seriously. And the events

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Speaker 10: over the last week where we saw this war kind

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Speaker 10: of reawaken, reignite. You saw the implications across the region

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Speaker 10: as well, with sirens blaring again in golf capitals when

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Speaker 10: business had kind of gone back to normal for a

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Speaker 10: little while. And you can see with the oil price

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Speaker 10: how this might impact say, pump prices in the US,

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Speaker 10: which get implications for the US midterms. Yes, so it's quite.

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Speaker 4: A renewal sighting. Yeah, it is.

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Speaker 3: I mean the conflict is also part of this rewiring

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Speaker 3: of relationships across the Middle East. How much more isolated

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Speaker 3: is Yvon now compared to before the war in girls

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Speaker 3: are started.

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Speaker 10: Well, Iran was never so sort of you know, fully

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Speaker 10: integrated into the Gulf. But you know, before the October

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Speaker 10: seventh attack, China had brokeered a reprochement between Saudi Arabia

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Speaker 10: and Iran, and this was seen as a very big deal,

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Speaker 10: two longtime enemies sort of willing to have a detone.

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Speaker 10: But what you saw, especially after the Iran War started

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Speaker 10: and Iran started, you know, lobbing thousands of missiles across

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Speaker 10: the Gulf, is even neighbors who were sort of willing

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Speaker 10: to give some kind of piece a chance in the

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Speaker 10: name of stability in the region begin to distance themselves.

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Speaker 10: Now as the war war on and Iran continued, you

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Speaker 10: saw sort of a further split within the Golf countries

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Speaker 10: between sort of a faction led by the UAE which

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Speaker 10: wanted a more aggressive response to Iran, and Saudi Arabia,

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Speaker 10: who leaned more towards diplomacy, again kind of in the

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Speaker 10: name of stability.

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Speaker 1: And I suppose if we think about this broadly across

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Speaker 1: the region, how much more unstable our relations now after

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Speaker 1: this string of conflicts, if any new alliance has been

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Speaker 1: formed to while so many others have been damaged.

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Speaker 10: Yeah, you've seen against Saudi Arabia leaning into diplomacy alongside Pakistan,

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Speaker 10: Cutter Egypt to an extent, looking toward more sort of

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Speaker 10: mediating this conflict to a peaceful n and on the

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Speaker 10: other side, the UAE has leaned further into its relationship

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Speaker 10: with Israel. You know, we had reporting that during this

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Speaker 10: war in a sort of unprecedented way, Israel and the

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Speaker 10: UAE were sharing intelligence, coordinating on strikes, and that has

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Speaker 10: helped to further divide this sort of rift within the

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Speaker 10: Gulf countries between Saudi Arabia and the UAE, where Israel

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Speaker 10: is sort of more of a fault line even than

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Speaker 10: it was before.

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Speaker 4: Yeah.

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Speaker 3: Absolutely, Neil, thank you so much for being with us.

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Speaker 3: Neil Munch is our deputy managing editor for the Middle

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Speaker 3: East and Africa. This as we see these renewed hostilities

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Speaker 3: and think about the context of this war that has

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Speaker 3: now been going on for one thousand days in the

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Speaker 3: Middle East, stay with us. More from Bloomberg Daybakeupe coming

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Speaker 3: up after.

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Speaker 2: This to other news.

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Speaker 1: A thirteen ton hall of cocaine disguised as bananas has

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Speaker 1: exposed what authorities in Spain allege as a financial network

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Speaker 1: that connects US based financiers, luxury Dubai real estate, and

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Speaker 1: a crypto trading Irish fintech company. Our financ support of

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Speaker 1: Donald Griffin joins us now for more details on this

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Speaker 1: complex but fascinating story. Don't let's start with the drug

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Speaker 1: seiz that happened back in twenty twenty four. What happened

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Speaker 1: and where did the investigation go from there?

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Speaker 11: Good morning, Yeah, this is a fascinating story, almost multiple

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Speaker 11: stories in one really. So in twenty twenty four, Spanish

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Speaker 11: authorities discovered a cargo of thirteen tons of cocaine that

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Speaker 11: have come from Ecuador all the way to the port

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Speaker 11: of Aljacius, which is in the Bay of Gibraltar just

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Speaker 11: opposite Gibraltar, and what we're supposed to be bananas was

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Speaker 11: actually thirteen tons of cocaine, which at the time was

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Speaker 11: a record seizure in Spain. And what seems to have

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Speaker 11: unfurled from there is this really really broad cocaine importing

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Speaker 11: network that also had a very very elaborate authorities allege

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Speaker 11: was a very very elaborate laundering network as well, so

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Speaker 11: that's where it's kind of gone from there.

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Speaker 2: It also has involved.

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Speaker 11: I mean some kind of fascinating individuals such as one

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Speaker 11: of Spain's top anti money laundering coups who are police officers,

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Speaker 11: who was alleged to have kind of been involved in

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Speaker 11: all of this, and then of course, they're a number

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Speaker 11: of very very senior sort of financiers who were also

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Speaker 11: alleged to have been involved in laundering the proceeds.

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Speaker 3: Yeah wow, Well, tell us a bit more about the

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Speaker 3: entities that the authorities have then connected to the case,

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Speaker 3: I mean in terms of where they're based and what

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Speaker 3: kind of businesses they are, what more do we know?

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Speaker 11: So it's quite a sprawling, messy network that the Spanish

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Speaker 11: authorities have alleged, and it's important to state that no

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Speaker 11: one has been charged here in the Spanish system. These

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Speaker 11: alleged protagonists are they've been formally named as suspects or

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Speaker 11: I think investigado is what they're known as in the

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Speaker 11: Spanish system, but no one has been charged.

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Speaker 2: And this is sort of just working through.

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Speaker 11: The Spanish legal system at the moment. But I think

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Speaker 11: one of the most interesting links for us when we

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Speaker 11: started taking a look at it was that two of

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Speaker 11: the people involved in allegedly helping to launder from the proceeds,

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Speaker 11: a fellow called Ketan Set who was based in the

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Speaker 11: United States, and then another individual called Francisco to Bourbon.

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Speaker 11: And these individuals they had been accused of running a

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Speaker 11: trading firm that I think was based sometimes in New York,

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Speaker 11: sometimes in California, and that this trading firm was accused

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Speaker 11: of sort of you know, helping sort of funnel these

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Speaker 11: these proceeds of drug sales.

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Speaker 2: But these individuals also what.

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Speaker 11: They've been involved in, and this is distinct from the

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Speaker 11: from the cocaine case. They set up a spack last

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Speaker 11: year focused on AI and data centers that has, I

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Speaker 11: mean done really well. It's raised hundreds of millions of dollars.

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Speaker 11: It's got links with you know, established Wall Street investment banks,

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Speaker 11: it's attracted some of the world's biggest investors as shareholders.

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Speaker 11: And again that's back is not accused of having anything

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Speaker 11: to do with all of this, but it just kind

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Speaker 11: of shows, I suppose, the links that these individuals had

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Speaker 11: to Wall Street finance.

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Speaker 1: Donald In terms of the investigation, as you mentioned, it's

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Speaker 1: still ongoing. What are the next steps that we're watching for.

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Speaker 11: So I think this is just working its way through

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Speaker 11: the system. Exactly what the Spanish choose to do next

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Speaker 11: is obviously up to them, And I think the documents

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Speaker 11: that that a lot of this story is based on

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Speaker 11: are sort of been They're being prepared for court by

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Speaker 11: investigators in Madrid in terms of set Ket and set

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Speaker 11: who was again the fellow who was behind this this back.

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Speaker 11: He has attempted to have his arrest warrant overturned. He

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Speaker 11: is set to appear in court I think in relation

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Speaker 11: to this later this year.

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Speaker 2: A number of individuals.

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Speaker 11: In the case are being held in jail, a number

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Speaker 11: of them are are out at the moment.

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Speaker 2: So I think it's just kind of working through the system.

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Speaker 11: And again no one has been charged just yet, and

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Speaker 11: I'm presuming that that would be the next stage in this,

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Speaker 11: that that formal charges will be based against people or not,

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Speaker 11: and it will go from there.

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Speaker 3: Yeah, it is certainly an extraordinary tale and involving so

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Speaker 3: many different people in so many different places. Donald, thank

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Speaker 3: you so much for being it to us and for

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Speaker 3: telling us about it. Our finance reporter, Donald Griffin. They're

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Speaker 3: talking about that major Spanish drug bust and what has

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Speaker 3: ensued from there.

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