Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning, I'm Karen Moscow and I'm John Tucker.
Speaker 3: Here are these stories we're following today.
Speaker 4: John, we begin with new developments in the Middle East.
Speaker 4: President Trump says talk to the Ron will begin this
Speaker 4: afternoon after he called off a planned attack on Iran.
Speaker 4: The President says he stepped back from the latest attacks
Speaker 4: following appeals from Saudi Arabia and other US allies in
Speaker 4: the region. And here's what he told reporters yesterday on
Speaker 4: BOARDI Air Force One.
Speaker 5: We're talking to them in the form of a negotiation.
Speaker 5: It begins tomorrow afternoon, and we'll see you. But sure,
Speaker 5: I'd love to do that, save a lot of lives,
Speaker 5: save a lot of a lot of unnecessary power, to
Speaker 5: be honest with you, or take many many years to
Speaker 5: have a build it back if it good. But I
Speaker 5: don't think it would be even build a boat back.
Speaker 5: So we had a we had an attack that would
Speaker 5: be the biggest attack since World War Two.
Speaker 4: And President Trump suggested a deal on reopening the straight
Speaker 4: up horror moves may be close. We get more from
Speaker 4: Bloomberg opinion columnist Mark Champion.
Speaker 6: He needs a deal, but he needs a deal that
Speaker 6: looks like a win for him, and that's going to
Speaker 6: be hard because at the moment, all that's being discussed
Speaker 6: is the status of the Strait of Hormuz, which was
Speaker 6: opened before the war and is only an issue now
Speaker 6: as a result of the war. It's not exactly a
Speaker 6: victory if you end up with an outcome where none
Speaker 6: of the things that you said you were going to
Speaker 6: the war have been dealt with, such as the nuclear program,
Speaker 6: but you have got a deal to reopen the Strait
Speaker 6: of Hormuz that gives Iran control that it didn't have
Speaker 6: before the war.
Speaker 4: And Bloomberg opinion columnist Mark Champion this morning, an Iranian
Speaker 4: Foreign Ministry spokesman says Aroun currently has no negotiations with
Speaker 4: the US.
Speaker 3: And Karen in Washington, the acting Attorney General Todd Blanch
Speaker 3: says he is formally rescinding an order creating an anti
Speaker 3: weaponization fund. Let's get to tales from Bloomberg's Monica Ricks.
Speaker 2: Acting Attorney General Todd Blinch has issued a formal announcement
Speaker 2: scrapping an anti weaponization fund that could have paid one
Speaker 2: point eight billion dollars to President Trump's allies, including January
Speaker 2: sixth rioters, and he further clarified the scope of the
Speaker 2: president sweeping immunity deal with the IRS. That move could
Speaker 2: now potentially clear the way for his confirmation as Attorney General.
Speaker 2: A Senate Judiciary vote's been rescheduled for tomorrow after Blanche
Speaker 2: reached an agreement with Senator John Cornyan, who'd been a holdout,
Speaker 2: insisting Blanche get rid of that fund permanently. Monica Ricks
Speaker 2: Bloomberg Radio.
Speaker 4: Right, Monica, thank you, Abile Key. Senators have unveiled a
Speaker 4: short term a spending bill to avoid a government shot
Speaker 4: down during the middle of campaign season. The bill would
Speaker 4: keep federal agencies funded past the midterm elections through December eleventh.
Speaker 4: The Senate is likely to vote on the measure before
Speaker 4: leaving Washington at the end of the week for its
Speaker 4: traditional August recess. By extending government funding now, lomickers can
Speaker 4: use the ensuing months to work out their differences on
Speaker 4: funding for the full year.
Speaker 3: Let's turn to the markets, where futures are higher as
Speaker 3: we begin a new trading month. This year's favorites the
Speaker 3: chip stocks, coming off a pretty rough July. The Philadelphia
Speaker 3: Stock Exchange a semiconductor index, the socks plunge twenty one
Speaker 3: percent that was its worst month in eighteen years, and
Speaker 3: today in South Korea, the Cosby Index that's a bell
Speaker 3: weather for AI investments, fill more than five percent after
Speaker 3: surging a record eighteen percent on Friday, John the.
Speaker 4: US is rushed to the aid of Japan to help
Speaker 4: prop up their ailing currency, its first joint action intervention
Speaker 4: on the en in fifteen years, and Treasury Secretary Scott
Speaker 4: Bessen posted on x both the US and Japan will
Speaker 4: not hesitate to intervene again. Japan's Finance Minister, Santsuki Kadayama
Speaker 4: back that statement up when she spoke to reporters this
Speaker 4: morning in Tokyo.
Speaker 7: We will not hesitate to conduct further joint intervention. The
Speaker 7: Japanese Ministry of Finance and the US Treasury will take
Speaker 7: decisive actions if any disorderly movements are detected, and those
Speaker 7: actions will be implemented. I am telling you that we
Speaker 7: are prepared to take actions at all times.
Speaker 4: And Japan's Finance minister, speaking through an interpreter. The rare
Speaker 4: coordinated intervention comes as the yen has been hovering around
Speaker 4: multi decade lows. Following the intervention, the yen is strengthening.
Speaker 4: It's up three tenths of up percent this morning against
Speaker 4: the dollar at one fifty six point ninety six.
Speaker 3: And on the economic Friday in the US, investors they're
Speaker 3: going to be looking ahead to Friday. That's when we
Speaker 3: get the jobs report for the month of July. And
Speaker 3: let's get a preview now from Bloomberg's Michael McKee.
Speaker 8: Investors bets on a rate increase next month, hang on
Speaker 8: a strong enough economy to absorb an increase in the
Speaker 8: cost of borrowing. The Fed's first measure of that is
Speaker 8: the July jobs report out Friday. The labor market scorecard
Speaker 8: is likely to be acceptable. Most economists haven't formalized their
Speaker 8: forecasts yet, and the employment readings in this week's ISM,
Speaker 8: manufacturing and services reports and Wednesday's ADP survey may lead
Speaker 8: some to make adjustments going into the week. However, the
Speaker 8: consensus is for little change in hiring, something just short
Speaker 8: of one hundred thousand or so. Unemployment is expected to
Speaker 8: be unchanged at four point two percent. Those kinds of
Speaker 8: numbers would reassure the Central Bank, not guaranteeing a rate move,
Speaker 8: but making one possible. Michael McKee, Bloomberg Radio All.
Speaker 4: Right, Michael, thank you. We have word this morning of
Speaker 4: a possible transatlantic mega deal in the drug making industry.
Speaker 4: We get more with Bloomberg's Charlie Pellett.
Speaker 9: Sources Tall Bloomberg the UK's AstraZeneca has explored an acquisition
Speaker 9: of Bristol Myers Squib, which is based in New Jersey.
Speaker 9: It's a potential mega deal that would create one of
Speaker 9: the world's largest drug makers. Bloomberg News says the companies
Speaker 9: have held early stage discussions about combining, but it's unclear
Speaker 9: if those discussions are ongoing. Bristol Myers Squib has a
Speaker 9: market cap of one hundred and thirty three point four
Speaker 9: billion dollars. Astra Zeneca has a value of one hundred
Speaker 9: and ninety five point nine billion pounds or about one
Speaker 9: hundred thirty three billion dollars in New York. Charlie Pellett,
Speaker 9: Bloomberg Radio, All right.
Speaker 4: Charlie, thank you. And in early trading, shares of astra
Speaker 4: Zeneca they're down about six percent, while Bristol's Bristol Myers
Speaker 4: Squib those shares they're up eight point seven percent.
Speaker 3: Yeah, let's get an update on Europe's wildfire season in Greece,
Speaker 3: deadly fires west of Athens are mainly under control. This morning.
Speaker 3: About five hundred firefighters tackle that place. It's burned more
Speaker 3: than twenty four thousand acres. A heat wave has eased
Speaker 3: in southwest France, helping firefighters to contain blazes near Bordell.
Speaker 3: Fire activity is also eased in Spain, while UK firefighters
Speaker 3: have been working to control a wildfire in southeastern England.
Speaker 3: A meteorologists warned the weather patterns support weeks of hot,
Speaker 3: dry conditions. The dangerous fire season may linger well into
Speaker 3: the fall.
Speaker 4: And we have a programming note here. John. Bloomberg Radio
Speaker 4: is introducing a new feature exclusively for Bloomberg dot Com
Speaker 4: subscribers and terminal clients. You can help shape our conversations
Speaker 4: by submitting questions for our analysts and experts to answer
Speaker 4: live on air. Subscribers, you can go to Bloomberg dot
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Speaker 4: hear them asked on the air. That's Bloomberg dot Com
Speaker 4: slash ask Radio.
Speaker 9: All right, thanks Karen.
Speaker 3: That brings us to five eight on Wall Street Time
Speaker 3: for a look at some of the other stories making
Speaker 3: news in New York and around the world. For that
Speaker 3: we're joined by Bloomberg's Michael Barr. Good morning, John. We
Speaker 3: have devastating wildfires in the US as well. In eastern Washington.
Speaker 3: State authorities say wildfires force the evacuation of sixty thousand
Speaker 3: people in the Spokane area, including patients at its US
Speaker 3: Veterans Affairs Hospital. The fires have destroyed at least six
Speaker 3: hundred homes, businesses, and other structures. US Unager Maria Catwell
Speaker 3: was at the scene of one burned out neighborhood.
Speaker 10: We now know that there are thousands of Washingtonians in
Speaker 10: Spokane area that had to be evacuated.
Speaker 7: We know there are hundreds of homes that have been destroyed.
Speaker 11: The fires have burned more than eight point two square miles.
Speaker 11: They've been among dozens of fires across the western US.
Speaker 11: No deaths have yet been reported from the fires in
Speaker 11: the Spokane area. Republican Ohio Senator Bernie Moreno called on
Speaker 11: his ex son in law, Ohio Representative Max Miller to
Speaker 11: resign in the US House amid allegations of physical violence
Speaker 11: against Miller's former wife and daughter on social media. Miller
Speaker 11: denied the allegations. Miller also says that he will remain
Speaker 11: in the race and win in November.
Speaker 12: Every one of these allegations traces back to a single source,
Speaker 12: my former wife. I filed for divorce in August of
Speaker 12: twenty twenty four. That October, she admitted under oath that
Speaker 12: I had never harmed our daughter.
Speaker 11: As for the allegations against Miller, President Trump said he
Speaker 11: would look at it, saying so far its accusations. A
Speaker 11: flight attendant strike at Canada's second largest airline could impact
Speaker 11: the US. West Jet Airlines serves more than a dozen
Speaker 11: US States. Bargaining Committee member Cameron Jones says they went
Speaker 11: on strike Sunday following failed talks.
Speaker 3: The goal is that we're expecting the federal government to
Speaker 3: protect our right to strike and allow bargaining to happen
Speaker 3: at the bargaining table as it's designed to do under
Speaker 3: the Candid Labor Code.
Speaker 11: One big stumbling block, the union says WestJet uses one
Speaker 11: method to pay flight attendants when the aircraft is in motion,
Speaker 11: and another to compensate for groundwork. Flight attendants argue the
Speaker 11: system is unfair, saying it results in as many as
Speaker 11: thirty five hours a month of unpaid work. Global News
Speaker 11: twenty four hours a day, and whenever you want it
Speaker 11: with Bloomberg News Now. I'm Michael Barr, and this is Bloomberg.
Speaker 13: Thanks Michael.
Speaker 4: Time now for our Bloomberg Sports update, and for that
Speaker 4: we bring in John stash Hour.
Speaker 10: Hotest even baseball has used to be. The Boston Red
Speaker 10: Sox twenty three and three since July ThReD finished a
Speaker 10: shocking sweep of the Dodgers in LA. The Red Sox
Speaker 10: hit four solo home runs and one eight to four.
Speaker 10: Baseball trade deadline six Eastern today, veteran Kevin Gossman just
Speaker 10: got traded by Toronto to the Cubs. The Mets traded
Speaker 10: pitcher Freddie Peralta to Tampa Bay, and the Washington Nationals
Speaker 10: traded slugging first base from Luis Garcia Junior to the Yankees.
Speaker 10: That's you Bloomberg Sports Update.
Speaker 4: Stay with us more from Bloomberg day Break coming up
Speaker 4: after this.
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius Exam,
Speaker 1: and around the world on Bloomberg dot Com and the
Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 4: And good morning. I'm Karen Moscow. Alongside John Tucker and
Speaker 4: President Trump said knew Iran talks should begin this afternoon
Speaker 4: this after he called off a planned attack on Iran,
Speaker 4: partially in response to police from US allies in the
Speaker 4: Middle East, including Saudi Arabia.
Speaker 5: We entered a fact that would be the biggest attack
Speaker 5: since World.
Speaker 4: War Two, and Trump suggested a deal on reopening the
Speaker 4: straight of horror moves may be closed. Meanwhile, at a
Speaker 4: foreign minister spokesman said Iran is currently not negotiating with
Speaker 4: the US. And for more on all this, we're joined
Speaker 4: by Patrick Sykes, Bloomberg News Middle East Breaking News Editor Patrick.
Speaker 4: Good morning, Patrick, get us up to date on the
Speaker 4: latest here.
Speaker 13: Please, Yeah, the latest.
Speaker 14: Just an hour or so ago, we had the Iranian
Speaker 14: Foreign Ministry spokesman pushing back on that statement from Trump.
Speaker 14: Iran is basically trying to distinguish between two sets of talks.
Speaker 14: It's saying, we are indeed speaking with the Omanis about
Speaker 14: the Strait of Foremus and what safe passage might look
Speaker 14: like in future, but we are not currently negotiating, you know,
Speaker 14: with the US.
Speaker 13: In the kind of format that we saw to end
Speaker 13: the war.
Speaker 14: That being said, I think the fact that there is
Speaker 14: clearly some diplomatic momentum in that O'mani track is a
Speaker 14: positive and it could be that that is what sort
Speaker 14: of unlocks the much thornia the bigger macro dialogue between
Speaker 14: Tehran and Washington, because, as we know, since the cease
Speaker 14: far unraveled, it's really been the status of that waterway safety,
Speaker 14: what navigation, what governance will look like after the war.
Speaker 14: That's been the sticking point the whole way through. So
Speaker 14: if Iran and Arman are able to reach some kind
Speaker 14: of bilateral understanding on that, the hope is that that
Speaker 14: will then ease things up for the bigger talks with
Speaker 14: the US.
Speaker 4: And there's different reports on what directions they might be
Speaker 4: going on when it comes to these talks about the
Speaker 4: Strait of Horror moves. So is there any idea of
Speaker 4: which idea is coming out as the one that might
Speaker 4: get an agreement.
Speaker 14: It sounds oddly like something like the data's quote before
Speaker 14: the war in terms of navigation, I not using I
Speaker 14: using a sort of middle route between the Omani and
Speaker 14: the Iranian coasts.
Speaker 13: That was the case before the war.
Speaker 14: Obviously, since the war we had Iran insisting that ships
Speaker 14: go close to its sure through a northern route and
Speaker 14: Arman later trying to arrange a southern route. That being said,
Speaker 14: while the ships might return to navigating something like the
Speaker 14: same corridor that they did before, that's not to say
Speaker 14: that the governance of those transits will be the same.
Speaker 14: It still does look like very much that Iran is
Speaker 14: insisting on a roll on a sort of veto power
Speaker 14: over ships and their right of passage in the future
Speaker 14: governance set up. So it's not to say that it'll
Speaker 14: be free navigation as we knew it before.
Speaker 13: February twenty eighth, And.
Speaker 4: Just quickly, what do we know about these talks? Just
Speaker 4: after doing that, President Trump is speaking about do we
Speaker 4: know anything about them? And who's taking part?
Speaker 14: No, And Iran was very keen to say this morning that, look,
Speaker 14: the Iranian foreign minister is on a personal religious pilgrimage today.
Speaker 14: The rest of the Iranian negotiating team remain in Iran.
Speaker 14: So he's signaling that, you know, there's no trips planned
Speaker 14: to Islama, Bid, to Geneva, Kata, any of those sort
Speaker 14: of mediator locations that we've seen come up in the
Speaker 14: course of the war. It may simply be that Trump
Speaker 14: is referring to, you know, a phone call, a exchange
Speaker 14: of messages of the kind that we've seen has never
Speaker 14: really stopped, So it may just be a much lower
Speaker 14: level kind of exchange that he's talking about.
Speaker 4: All right, Patrick Sich, Thank you. Patrick Sikes's Bloomberg News
Speaker 4: Middle East breaking news editor. Oil is following this morning
Speaker 4: after President Trump said new talk to Iran would begin
Speaker 4: today after he called off a planned attack on the
Speaker 4: Islamic Republic. Brent this morning is down almost five percent.
Speaker 4: Is at eighty three dollars sixty seven cents a bear.
Speaker 4: All this after swinging through a roughly a thirty two
Speaker 4: dollars range last month. We want to get more with
Speaker 4: Mike mcglowan, senior commodity strategist with Bloomberg Intelligence. Mike, good morning,
Speaker 4: Let's talk a bit about these swings. Is this just
Speaker 4: the way things are going to be as the situation
Speaker 4: and Iran continues.
Speaker 15: Yes, Good morning, Karen. I think it's going to continue
Speaker 15: to be this way. But we have to keep in
Speaker 15: mind the number one motivation of the leader of the
Speaker 15: world's largest energy producer and net exporter, and mister Trump
Speaker 15: needs lower energy prices by midterms. Now, he didn't get
Speaker 15: the unconditional surrender I think he expected within two weeks
Speaker 15: of the start of the conflict with Iran. But now
Speaker 15: he's doing the work around and he has to find
Speaker 15: some way to get prices lower. So that's the ten
Speaker 15: on a one to ten scale, which matters str energy
Speaker 15: and you're seeing that now you mentioned Brent. I like
Speaker 15: to focus on WTI. Right now, the price is about
Speaker 15: seventy nine dollars a barrow. For the last twenty years,
Speaker 15: the highest volume price, the apex of the Bell curve
Speaker 15: a tradeing, is around seventy dollars a barrew. So despite
Speaker 15: this pretty significant conflict, Crudel hasn't really moved much from
Speaker 15: those levels. In fact, I think put in a high
Speaker 15: this year. I think by the end of the year
Speaker 15: it's going to be heading much lower. And the key
Speaker 15: thing to make that go lower is, okay, some kind
Speaker 15: of deton and Iran, But if the stock market has
Speaker 15: a little bit of pickupfully, that'll be a pressure factor
Speaker 15: for crude oil too.
Speaker 4: Yeah, you see oil as low as forty dollars a barrel,
Speaker 4: Is that correct?
Speaker 13: And as that still hold?
Speaker 15: Oh yeah, Well I started making that call twenty twenty
Speaker 15: three on the way down after it peaked at one thirty.
Speaker 15: This year's high was one twenty and high in two
Speaker 15: thousand and eight was one forty seven. See that trend,
Speaker 15: lower highs and lower lows. The lows have been forty cents.
Speaker 15: The significance is during that whole period, most of that period,
Speaker 15: US was a net importer. Now on a normal basis,
Speaker 15: if prices state is high, by the end of twenty
Speaker 15: twenty eight, the surplus them supplying demand of crude oil
Speaker 15: and liquid fuels out of the US and Canada will
Speaker 15: approach ten million barrels a day. By the way, that's
Speaker 15: about what China was importing before this conflict. So there's
Speaker 15: a major paradigm shift in the world. The Western hemisphere
Speaker 15: with the US and the Middle is now the price
Speaker 15: maker status In crudel, it is an oversupplied market with
Speaker 15: a bit of an admiration at the moment in the Gulf,
Speaker 15: and as we get to normalize a little bitle switch
Speaker 15: back to overslid ply this oversupplied market. Keything their members
Speaker 15: commodities always go their cost of production, and the US
Speaker 15: the largest producer. That's around fifty five.
Speaker 13: Dollars of barrow.
Speaker 4: All right, and we've got less than a minute here, Diesel.
Speaker 4: We did hear from Goldman Sax this morning warning about
Speaker 4: a diesel crunch because of what's going on in Russia.
Speaker 4: Are you watching diesel?
Speaker 13: Oh?
Speaker 15: Absolutely, well, those are different markets diesel and dispolit's gasoline.
Speaker 15: So diesel is at five dollars and thirty six hours
Speaker 15: five dollars and thirty six cents a gallon. Before the crisis,
Speaker 15: it was just around three fifty and same as US
Speaker 15: average gasoline price three hours and ten cents. Before the crisis,
Speaker 15: it was about four hours. The thing is, now that's
Speaker 15: cutting off the man. It's a bit of a different market.
Speaker 15: But by the time we get the midterms, he needs
Speaker 15: those prices lower, and I fully expect that we'll be
Speaker 15: lower by time we get the midterms. It's just how
Speaker 15: he figures it out. Could involve some kind of export restrictions,
Speaker 15: but right now they're high.
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