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, we begin with a breaking story impacting hundreds of
Speaker 4: thousands of travelers around the world. London's Heathrow Airport is
Speaker 4: closed all day. Let's get the very latest with Bloomberg Daybreak.
Speaker 4: Euro banker Caroline Hepgar in London. Good morning, Caroline, what
Speaker 4: is happening?
Speaker 5: Good morning, Nathan and Karen. It is a fire at
Speaker 5: a power substation about two miles from the airport that
Speaker 5: broke out just before midnight that led to a cut
Speaker 5: in power for Heathrow. It has forced the cancelation of
Speaker 5: thousands of flights. Flight Radar twenty four says that there
Speaker 5: were due to be one three hundred flights for today.
Speaker 5: Some one hundred and twenty planes had to be re
Speaker 5: rooted away from Heathrow in the early hours of this morning.
Speaker 5: Heathrow says that the disruptions will continue over the coming days,
Speaker 5: adding that passengers should not travel to the airport under
Speaker 5: any circumstances. The London Farbagade said in a statement that
Speaker 5: the blaze is now under control. No casualties, but the
Speaker 5: cause of the fire is not yet known. European travel
Speaker 5: and leisure stocks Nathan this morning down two percent, he throw,
Speaker 5: which is home to airlines including IAG's British Airways and
Speaker 5: Virgin Atlantic. IAG shares now down as much as four
Speaker 5: point three percent.
Speaker 2: Caroline, when do we expect things to get back to normal?
Speaker 5: This is the unknown, he throws, the busiest airport in Europe.
Speaker 5: The airport doesn't know when power will be restored. The
Speaker 5: Energy Secretary Ed Millardband has been speaking to media in
Speaker 5: the UK, including to Sky News. He says that he's
Speaker 5: spoken to the National Grid, who are really at the
Speaker 5: epicenter of this, he says, and we will be doing
Speaker 5: everything we can both to restore power and to help
Speaker 5: the national grid. Jeffrey says that passenger compensation for delayed
Speaker 5: flights is likely going to have a big immediate impact
Speaker 5: on IAG. Some local people were evacuated. There was lots
Speaker 5: of smoke, no doubt, many thousands of frustrated passages.
Speaker 3: All right, Caroline, Hepger, thank you. Will continue to follow
Speaker 3: this story throughout the morning. We turned to Washington now, though,
Speaker 3: with President Trump denying a bombshell report about Elon Musk
Speaker 3: being briefed about the Pentagon's plan for any potential war
Speaker 3: with China to get the very latest to the Bloomberg's
Speaker 3: John Tucker, John, good Morning and Good Morning Karen.
Speaker 6: The New York Times sites multiple unidentified US officials as
Speaker 6: saying Musk would see details of American plans in a
Speaker 6: presentation led by the Defense Secretary Pete Hegsith and top
Speaker 6: US military leaders. The Wall Street Journal also reported Mosk
Speaker 6: would receive a briefing on US plans for any potential
Speaker 6: China war, and a social media post, President Trump says
Speaker 6: the Times report is ridiculous and completely untrue. In a
Speaker 6: separate post, heg Sith confirmed that Musk will visit the
Speaker 6: Pentagon today, saying it's an informal meeting about innovation.
Speaker 7: Well.
Speaker 6: The reports underscore the unprecedented roles that Musk holds a
Speaker 6: across the heart of the US government and the economy
Speaker 6: all at the same time. Any such briefing would expose
Speaker 6: some of the Pentagon's closely guarded strategic thinking to a
Speaker 6: billionaire with extensive business ties in China. The meantime, Musk
Speaker 6: is now threatening Pentagon employees in a post on Acts.
Speaker 6: He says he looks forward to the prosecution of those
Speaker 6: at the Pentagon who are leaking false information. He warns
Speaker 6: they will be found in New York. I'm John Tucker,
Speaker 6: Bloomberg Radio.
Speaker 2: John, thank you.
Speaker 4: President Trump's made a major move and is push to
Speaker 4: overhaul the federal government. He assigned an executive order to
Speaker 4: all but dismantle the Department of Education.
Speaker 8: After forty five years. The United States spends more money
Speaker 8: on education by far than any other country, and spends likewise,
Speaker 8: by far more money per pupil than any country. And
Speaker 8: it's not even close, but yet we rank near the
Speaker 8: bottom of the list in terms of success.
Speaker 4: The President's order direct Education Secretary Linda McMahon to take
Speaker 4: all necessary steps to close the agency, but it doesn't
Speaker 4: give a clear blueprint, and shutting down an entire cabinet
Speaker 4: department would take an Act of Congress. In remarks heard
Speaker 4: here on Bloomberg, Trump said the agency's core functions, like
Speaker 4: pelgrants and funds for special needs children will remain.
Speaker 9: They are going to be preserved in full and redistributed
Speaker 9: to various other agencies and departments that will take very
Speaker 9: good care of them and it's very important to Linda,
Speaker 9: I know, and it's very important.
Speaker 10: To all of us.
Speaker 4: President Trump's already moved to cut nearly half the Education
Speaker 4: Department's workforce.
Speaker 2: This order is likely to face legal challenges well, Nathan.
Speaker 3: President Trump also signed an executive order aimed at boosting
Speaker 3: critical mineral production, and that could include coal. The President
Speaker 3: is using the Defense Production Act to provide financing, loans
Speaker 3: and other investments of poor to process rare earth elements
Speaker 3: and other minerals in the US. The move addresses long
Speaker 3: health concerns that China controls the vast majority of a
Speaker 3: rare mineral processing certain markets.
Speaker 4: Now, Karen futures are lower as we close out out
Speaker 4: the trading week. The S and P five hundred's fallen
Speaker 4: for four straight weeks, and there could be more volatility
Speaker 4: than normal today. We get more from Bloomberg Market's reporter
Speaker 4: Valerie Titel.
Speaker 11: We need to take an eye to triple witching. This
Speaker 11: is the option expiry event that happens at the end
Speaker 11: of every quarter. It's called triple witching because there are
Speaker 11: single stocks ETFs and indices. All three options tied to
Speaker 11: those equity indices expire this afternoon. Into the close, we
Speaker 11: normally see a very large surge in volumes and some
Speaker 11: volatile stocks, maybe some more less liquid single names have
Speaker 11: some pretty wild swings into the clothes.
Speaker 4: Bloomberg Markets reporter Valerie Ttel says four and a half
Speaker 4: trillion dollars of options contracts expire today.
Speaker 3: Well, let's check some stocks on the move this morning,
Speaker 3: Nathan and shares of FedEx are down seven percent. The
Speaker 3: shipping company has lowered as full year guidance for a
Speaker 3: third consecutive quarter. Inflation and uncertain demand for packages are
Speaker 3: squeezing the company's bottom line. Lea Clasgow covers FedEx for
Speaker 3: Bloomberg Intelligence.
Speaker 12: The demand picture is probably not as good as we
Speaker 12: thought it might have been three months ago when President
Speaker 12: Trump was elected and people thought the animal spirits will
Speaker 12: be released, and you know, we'd have a less regulation,
Speaker 12: kind of lower tax environment, which is obviously better for business.
Speaker 12: But fast forward today, you know, companies are reeling in
Speaker 12: their capex because they just don't know what the future holds.
Speaker 3: And Bloomberg Intelligence is late. Glasgow says FedEx's latest outlook
Speaker 3: assumes the global economic, political, and trade environment does not
Speaker 3: worsen any further and Karen.
Speaker 2: Shares of Nike are down five percent.
Speaker 4: The sportswear maker is signaling further declines in revenue and
Speaker 4: profitability due to an inventory clearance. Nike also expects its
Speaker 4: gross margins to decline sharply in the current quarter from
Speaker 4: a year earlier, in part due to US tariffs on
Speaker 4: products from China and Mexico.
Speaker 3: We're also watching Micron Technology, the largest US maker of
Speaker 3: computer memory chips, gave a strong sales forecast for that
Speaker 3: current quarter, bolstered by demand for artificial intelligence products, and.
Speaker 4: AT and T is going to be in focus today.
Speaker 4: Karen Bloomberg News has learned BT Group approached major telecommunications companies,
Speaker 4: including AT and T, about partnerships to help turn around
Speaker 4: its struggling international business. When asked about a potential BT
Speaker 4: partnership recently, AT and T's chief financial officer declined to comment.
Speaker 3: Well, we turn to the economy now, and former Treasury
Speaker 3: Secretary Larry Summers says he is astonished that FED chair J.
Speaker 3: Powell used the word transitory to describe the effects of
Speaker 3: President Trump's tariff policy.
Speaker 7: I would have thought the chairman would retire the words translatory.
Speaker 7: That is perhaps the most notoriously ill chosen phrase of
Speaker 7: his excellent seven and a half year run as FED chair.
Speaker 3: And Summers made the comments on Bloomberg's Wall Street Week
Speaker 3: with David Weston. Here're the full conversation tonight at six
Speaker 3: pm Wall Street Time on Bloomberg Radio and Bloomberg Television,
Speaker 3: or get the Wall Street Week podcast after the show
Speaker 3: airs wherever you get your podcasts. Time now for a
Speaker 3: look at some of the other stories making news in
Speaker 3: New York and around the world. And for that we're
Speaker 3: joined by Bloomberg's and Michael Barr Michael, Good Morning.
Speaker 13: Good morning Karen. The National Transportation Safety Board is issuing
Speaker 13: sweeping recommendations for state departments of Transportation to immediately assess
Speaker 13: the vulnerability of their bridges. The report comes after the
Speaker 13: collapse of the Francis Scott Key Bridge in Baltimore after
Speaker 13: it was struck by a cargo ship almost a year ago.
Speaker 13: INTSP Chair Jennifer Hammondy says the report should be a
Speaker 13: warning to other bridges across the country and is urging
Speaker 13: owners to comply.
Speaker 14: Had they ran the calculation on the Francis Scott Key Bridge,
Speaker 14: the MDTA would have been aware that the bridge was
Speaker 14: almost thirty times greater than the risk threshold ASHTOSE sets
Speaker 14: for Critical Essential bridges.
Speaker 13: NTSP Chair Jennifer Hammody is calling on the vulnerability assets
Speaker 13: of nearly seventy bridge bridges across the US, including fifteen
Speaker 13: in New York and New Jersey. Transportation Secretary Sean Duffy
Speaker 13: says he's granting New York a thirty day extension to
Speaker 13: end its congestion pricing program in Manhattan. The Trump administration's
Speaker 13: original deadline was today. New York Governor Kathy Okel and
Speaker 13: the MTA pledged to keep the congestion pricing cameras on
Speaker 13: no matter what the administration did. Congress Member Jerry Natler
Speaker 13: of New York says, the elected officials who run the
Speaker 13: city know it best.
Speaker 10: The value pricing program is so the established under federal law,
Speaker 10: it is clearly delivering tangible benefits. Simply put, congestion pricing
Speaker 10: is no different than New Jersey's ability to set tolls
Speaker 10: on the New Jersey turnpipe.
Speaker 13: Meanwhile, opponents of the tolls, like Representative Josh Gottheimer of
Speaker 13: New Jersey, say congestion pricing is destined.
Speaker 2: To fail to the NCAA.
Speaker 6: Enjoy your last hour, screwing over hard working commuters with
Speaker 6: the congestion.
Speaker 13: Tax Gottheimer audio courtesy of News for. Israel's cabinet has
Speaker 13: approved Prime Minister menagement at Now, whose decision to fire
Speaker 13: the country's domestic intelligence chief Running Bar despite thousands of
Speaker 13: protesters rallying against his removal. Global News twenty four hours
Speaker 13: a day and whenever you want it with the Bloomberg
Speaker 13: News Now. I'm Michael barrn. This is Bloomberg. Karen.
Speaker 3: All right, Michael barr thank you time now for the
Speaker 3: Bloomberg Sports Update, brought to you by try State. Audie.
Speaker 3: Here's John Staneshawer John, good morning, Good.
Speaker 13: Morning, Karen.
Speaker 15: Nobody at Saint John's wants this storybook season to end.
Speaker 15: The red storm began. The NC doubled as in Providence
Speaker 15: against Omah, and a slow start took Saint John's three
Speaker 15: and a half minutes to score a point. Thirteen minutes
Speaker 15: into the game, they had yet to take a lead,
Speaker 15: but up five at halftime. The second half all red Storm.
Speaker 16: Saint Shahn's really stayed attached Oscar warn Let's sit three
Speaker 16: mist it wawn what down by Scott here come to
Speaker 16: Charnie's on the move three on one give what wos
Speaker 16: what brs to slam Shawnee.
Speaker 15: Start boy us been on Saint John's won eighty three
Speaker 15: fifty three. R. J. Lewis scored twenty two. It's their
Speaker 15: first NCAA win in twenty five years, and tomorrow afternoon
Speaker 15: if they'll take on Arkansas. It was earlier in Providence
Speaker 15: where the biggest upset took place. Not only that twelfth
Speaker 15: seeded mcneie knocked off fifth seed at Clemson, but that
Speaker 15: at halftime McNeice led thirty one to thirteen, They led
Speaker 15: by twelve with a minute to go, ended up winning
Speaker 15: by only two first NCAA win in school history. The
Speaker 15: next really missed Jalen Bruns. In last two nights of
Speaker 15: May that obvious, a fifteen point loss in San Antonio
Speaker 15: a seventeen point loss in Charlotte. The Hornets have lost
Speaker 15: fifty one games. They've had five losses this month by
Speaker 15: more than thirty points, and yet they outscored the Knicks
Speaker 15: in every quarter and won one fifteen to ninety eight.
Speaker 15: The Nets in Indiana were up ten at the half,
Speaker 15: Pacers came back to winning overtime. Another Rangers loss at
Speaker 15: the Garden loss at Toronto four to three.
Speaker 13: That's three home losses this week.
Speaker 2: Mayple Lice never trailed.
Speaker 15: Got two goals from John Tavares, Islanders with a four
Speaker 15: to three win over Montreal, now tied with the Rangers.
Speaker 15: The Devil's lost to Calgary five to three. Of the
Speaker 15: Celtics being sold, the price tag is six point one billion,
Speaker 15: a little more than what the Washington Commanders just went for.
Speaker 15: So what's the most in North American sports history? Two
Speaker 15: billion more than any NBA team has gone for. The
Speaker 15: new ownership group, led by Bill Chisholm from the Symphony Technology.
Speaker 2: Firm, is a lifelong Celtics fan. Johns Dashy Ally Bloomberg
Speaker 2: Sports Karen Natan.
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 1: and around the world on Bloomberg dot Com and the
Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 2: Good morning, I'm Nathan Hager.
Speaker 4: This morning, Europe's busiest airport is shut down. A power
Speaker 4: outage just forced London's Heathrow to close all day, causing
Speaker 4: travel chaos for the hundreds of thousands who rely on
Speaker 4: the Transatlantic flight hub each day. For the very latest
Speaker 4: We're joined by Bloomberg Global Aviation editor Benedict Como. Benedict,
Speaker 4: good morning. What do we know at this point about
Speaker 4: what caused this fire? We understand it happened at a
Speaker 4: power substation.
Speaker 17: Yes, good morning, that's right. So this is a power
Speaker 17: substation nearby, about two miles away from the airport that
Speaker 17: caught fire in the middle of the night. We don't
Speaker 17: know why. That's going to be one of the main
Speaker 17: thrust of the investigation. It has now been extinguished, but
Speaker 17: the damage is done. So not only are people in
Speaker 17: the vicinity without power, but hethrow airport is entirely shut off.
Speaker 4: Give us a sense of just how much chaos this
Speaker 4: is causing right now. As we said, this is the
Speaker 4: busiest airport in Europe.
Speaker 17: Yeah, this is This is an unprecedented breakdown really for
Speaker 17: the airport. There have been disruptions in the past, you know,
Speaker 17: there might have been strikes, there might have been weather
Speaker 17: related to disruptions, but for the airport to close down
Speaker 17: for an entire day, that is unheard of. This is
Speaker 17: an airport that handles about four hundred flights a day,
Speaker 17: two hundred thousand passengers, you know, give or take an
Speaker 17: aircraft taking off about every minute, so this is to
Speaker 17: have a massive ripple effect. There were planes in the
Speaker 17: air already that were coming in from the Middle East
Speaker 17: from Asia. Those planes had to be rerouted to places
Speaker 17: like Frankfurt, like Birmingham in the UK. Some were able
Speaker 17: to land at Gatwick Airport, which is the other big
Speaker 17: London airport, so those people were lucky. But for a
Speaker 17: lot of people, they're out of position or they didn't
Speaker 17: even get to where they wanted to be. Everyone flying
Speaker 17: from the US will have to think twice. Hopefully by
Speaker 17: tomorrow things will be back to normal, but usually it
Speaker 17: is erupted on this scale leads to several days, if
Speaker 17: not into next week, of disruptions because you'll have aircraft
Speaker 17: out of position, you'll have a crew out of position.
Speaker 17: So this is not just today, This is something that
Speaker 17: will stay with the airport for the next couple of days.
Speaker 4: Whenever something like this happens at an airport, your mind
Speaker 4: goes to sabotage. Are authorities going there yet, Benedict, It's.
Speaker 17: Too soon to say the blazer's just been extinguished, but
Speaker 17: this will certainly be one line of inquiry that they
Speaker 17: will look at. Another question that will come up is
Speaker 17: how can it be that as something like Heathrow and
Speaker 17: Airport that are so critical to the UK infrastructure, didn't
Speaker 17: have the necessary redundancy systems in place. How can it
Speaker 17: be that a single power station, regardless how big and
Speaker 17: important it is, could really take out this airport. What
Speaker 17: kind of precautions might there have been. This comes at
Speaker 17: a time where the airport is trying to expand the
Speaker 17: UK is really pitching it we're open for business, We're
Speaker 17: open for expansion kind of idea. And this is not
Speaker 17: a good look for the airport or for the government
Speaker 17: at large, and there will be some tough questions that
Speaker 17: will be asked.
Speaker 3: This is Bloomberg Daybreak, your morning podcast and the stories
Speaker 3: making news from Wall Street to Washington and beyond.
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Speaker 3: Search Bloomberg News Now on your favorite podcast platform to
Speaker 3: stay informed all day long. I'm Karen Moscow.
Speaker 2: And I'm Nathan Hager.
Speaker 4: Join us again tomorrow morning for all the news you
Speaker 4: need to start your day right here on Bloomberg.
Speaker 3: Dbreay