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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, we begin with the latest developments in the Middle East.

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Speaker 3: The war has entered a fifth day of fighting and

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Speaker 3: there are no signs of easing. Israel says it's striking

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Speaker 3: Iranian targets as well as Hesbala sites in Lebanon, as

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Speaker 3: Iran continues to fire missile at Arab states across the

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Speaker 3: Middle East. Saudi Arabia says there was just an attempt

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Speaker 3: this morning on one of its key refineries at Rostanura.

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Speaker 3: The kingdom says there was no damage. We get the

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Speaker 3: latest from Bloomberg Middle East Managing Editor Paul Wallace.

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Speaker 4: This conflict continues and there's no sign of let up

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Speaker 4: from Iran or the US or Israel.

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Speaker 5: The latter two continue.

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Speaker 4: To strike Iran heavily, and Iran is striking back very

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Speaker 4: intensely against golf Arab states. It seems at the moment

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Speaker 4: as if Iran is concentrating most of its power on

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Speaker 4: those golf out states rather than Israel and the likes

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Speaker 4: of the UAE, the likes of Saudi Arabia. The census

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Speaker 4: very much that Iran is using its drones now, of

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Speaker 4: which it has far more than it does, cruise and

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Speaker 4: ballistic missiles to target golf Ab states.

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Speaker 3: Bloomberg's Paul Wallace says the State Department has now announced

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Speaker 3: plans to help evacuate Americans who want to leave the

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Speaker 3: Middle East well Nathan.

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Speaker 2: President Trump said the US would provide insurance guarantees and

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Speaker 2: naval escorts to ensure safe passage for oil tankers and

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Speaker 2: other vessels through the Strait of Horror moves. That's not

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Speaker 2: having too much impact on the oil market right now.

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Speaker 2: Crude is up again. N I makes screwed oil is

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Speaker 2: at seventy six dollars sixty one cents of barrel brent

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Speaker 2: is it eighty three dollars eighty cents. Meanwhile, the President

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Speaker 2: said he ordered the attack on a run because he

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Speaker 2: thought Tehran was about to attack first, and that Israel

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Speaker 2: did not force his hand to initiate the air assaults.

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Speaker 2: Trump spoke yesterday at the Oval Office.

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Speaker 6: Based on the way the negotiation was going, I think

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Speaker 6: they were going to attack first, and I didn't want

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Speaker 6: that to happen. So, if anything, I might have forced

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Speaker 6: Israel's hand, but Israel was ready and we were ready.

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Speaker 2: President Trump is threatening to cut off all trade with

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Speaker 2: Spain after that country denied the US access to its

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Speaker 2: military bases for the campaign against Iran. The President says

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Speaker 2: he has already instructed Treasury Secretary Scot Vesn't to sever

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Speaker 2: the relationship.

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Speaker 6: I told Scott to cut off all dealings with Spain.

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Speaker 6: They were the only country that in NATO would not

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Speaker 6: agree to go up to five percent. I don't think

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Speaker 6: they would have agreed to go up to anything. They

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Speaker 6: wanted to keep it at two percent, and they don't

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Speaker 6: pay the two percent. So we're going to cut off

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Speaker 6: all trade with Spain.

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Speaker 2: A Spanish government official said that the US must respect

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Speaker 2: international trade agreements and the autonomy of private companies.

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Speaker 3: And more world leaders are speaking out about the war Caaren.

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Speaker 3: Canadian Prime Minister Mark Carney is criticizing the US and

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Speaker 3: Israel for striking Iran without consulting allies or the United Nations.

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Speaker 7: The current conflict is another example of the failure of

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Speaker 7: the international order, despite decades of UN Security Council resolutions,

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Speaker 7: the work of the International Atomic Energy Agency, in a

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Speaker 7: succession of sanctions and diplomatic frameworks arounds nuclear threat remains

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Speaker 7: and now the United States and Israel have acted without

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Speaker 7: engaging in the UN or consulting with allies, including Canada.

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Speaker 3: Canadian Prime Minister Marcarney spoke earlier in Sydney and.

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Speaker 5: Nathan and Europe.

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Speaker 2: UK's Chancellor Rachel Reeves says Britain will not make decisions

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Speaker 2: about Iran based on US trade tie. Speaking of Bloomberg,

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Speaker 2: Reeves explained why the government was not taking part in

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Speaker 2: the strikes on Tehran.

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Speaker 8: When it comes to decisions around using British armed forces

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Speaker 8: to take part in conflicts around the world, it is

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Speaker 8: very important that we charge those on whether it is

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Speaker 8: legal and whether it is the right thing to do.

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Speaker 8: You can't make a decision about whether to get British

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Speaker 8: en forces involved in a conflict because it may or

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Speaker 8: may not make it more likely to get a trade deal.

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Speaker 2: And Rachel Rizo speaking of Bloomberg after President Trump criticized

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Speaker 2: Prime Minister Keir Starmer over the UK's limited support.

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Speaker 3: Let's turn to politics now, Karen back here in the US.

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Speaker 3: The results are in from the first primary races in

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Speaker 3: the twenty twenty six mid term elections in Texas. Four

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Speaker 3: term Republican Senator John Cornan is headed to a runoff

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Speaker 3: with State Attorney General Ken Paxton.

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Speaker 5: The people of Texas made your voices heard.

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Speaker 3: After all the personal attacks, which there were many, and

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Speaker 3: after all the lies. You listen to what John corn

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Speaker 3: was selling, and you weren't buying it. With eighty eight

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Speaker 3: percent of ballots counted, Ken Paxton trails Senator Cornyon by

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Speaker 3: one percentage point forty point nine to forty one point

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Speaker 3: nine percent. Republican Congressman Wesley Hunt received thirteen point four

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Speaker 3: percent of the votes, denying either candidate, a majority that

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Speaker 3: means Cornin and Paxton will face off again in May.

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Speaker 2: Well Nathan and the close watch Democratic Senate prime array.

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Speaker 2: State Representative James Tellerrico defeated Congressoman Jasmine Crockett fifty three

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Speaker 2: point one to forty five point six percent, but the

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Speaker 2: vote was marked by confusion. In Crockett's home base of

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Speaker 2: Dallas County, voters there and in at least one other

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Speaker 2: county reported being turned away from polling places due to

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Speaker 2: a rule change that required them to vote at their

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Speaker 2: local precinct. In past elections, they could vote anywhere in

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Speaker 2: the county. A judge extended the voting by two hours,

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Speaker 2: but Crockett says her heart is broken.

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Speaker 9: We were able to keep the polls open, but I

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Speaker 9: can tell you now that people have been disenfranchised.

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Speaker 2: Congress Woman Jasmine Crockett says the result could hinge on

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Speaker 2: who was or was not allowed to vote in Dallas County.

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Speaker 2: Tall Rico also blamed Republicans for the rule change and

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Speaker 2: called for a voting hours to be extended.

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Speaker 3: In other key races, Karen Texas Republican Dan Crenshaw is

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Speaker 3: the first incumbent congressman to lose in the midterms. He

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Speaker 3: felt to conservative state lawmaker Steve Toth fifty six point

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Speaker 3: three to forty point two percent. Another Republican in Texas,

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Speaker 3: Tony Gonzalez, is headed to a runoff with gun rights

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Speaker 3: YouTuber Brandon Herrera. Gonzalez has faced allegations of an affair

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Speaker 3: with a staffer who later died by suicide. And in

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Speaker 3: North Carolina, a high profile Senate race is set for November.

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Speaker 3: Former Governor Roy Cooper won the Democratic primary. He will

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Speaker 3: face former Republican National Committee Chairman Michael Wattley in what

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Speaker 3: could be one of the most expensive Senate races.

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Speaker 5: In the country.

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Speaker 2: Nathan, Let's turn to the nation's capital now. Homeland Security

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Speaker 2: Secretary Christy Nome defended the immigration crackdown during her testimony

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Speaker 2: before the Senate Judiciary Committee, and Bloomberg's Amy Morris reports

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Speaker 2: from Washington.

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Speaker 10: Nome faced bipartisan backlash over the immigration crackdown. Republican Senator

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Speaker 10: Tom Tillis called for Nome's resignation, citing allegations that she

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Speaker 10: blocked an Inspector general from investigating complaints against DHS.

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Speaker 11: As of today, I'll be informing leadership that I'm putting

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Speaker 11: a hold on any odd wock nominations until I get.

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Speaker 5: A response, and in two waits.

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Speaker 11: If I don't get a response, I'm going to deny

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Speaker 11: quorum and mark up in as many committees as I

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Speaker 11: can until I get a response.

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Speaker 10: Till Us accused Nome of trying to hit her immigration

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Speaker 10: detention quotas rather than concentrating on dangerous undocumented immigrants. Nom

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Speaker 10: denied interfering with any investigations in Washington. Amy Morris, Bloomberg Radio,

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Speaker 10: All right.

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Speaker 5: Amy, thank you.

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Speaker 3: There are new developments in the Jeffrey Epstein investigation. The

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Speaker 3: top lawyer at Goldman Sachs Kathy Rumler says she's accepted

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Speaker 3: an invitation to testify before the House Oversight Committee on

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Speaker 3: April twenty first. The Justice Department's files show Rumbler accepted

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Speaker 3: tens of thousands of dollars of gifts from the late

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Speaker 3: sex offender and offered advice on protecting his reputation in

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Speaker 3: the years before he died. Rumnollyer announced plans to resign

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Speaker 3: from Goldman last month. Her spokeswoman says she did nothing

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Speaker 3: wrong and did not know about Epstein's crime. The Oversight

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Speaker 3: Committee is also requesting interviews with six other people, including

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Speaker 3: Microsoft co founder Bill Gates and to Poblo Global Management

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Speaker 3: co founder Leon Black. The panels asking for their testimony

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Speaker 3: in May.

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Speaker 2: Let's turn to the markets now, Nathan and futures. They

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Speaker 2: have turned higher. S and P futures now up a

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Speaker 2: quarter percent, and this is aunder yesterday's losses on Wall Street.

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Speaker 2: The S and P five hundred did fall almost one

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Speaker 2: percent yesterday, but at one point it was down two

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Speaker 2: and a half percent. Goldman Sachs chairman David Solomon says

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Speaker 2: he's been surprised by the quote benign reaction and financial

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Speaker 2: markets to the Middle East conflict he told the Australian

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Speaker 2: Financial Review Business Summit in Sydney. It will take weeks

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Speaker 2: to understand more about the situation.

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Speaker 5: Well, it's been anything but benign. In South Korea, Karen.

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Speaker 3: The COSPY index there suffered its biggest one day crash

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Speaker 3: on record, plunging another twelve percent today following a seven

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Speaker 3: point two percent drop yesterday. The sell off is a

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Speaker 3: reminder of how swiftly market exuberants can turn into anxiety

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Speaker 3: in satiable demand for memory chips, and helped push the

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Speaker 3: costp up nearly fifty percent at its peak this year.

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Speaker 2: Nathan Minneapolis FED president Neilkashkari said the war in the

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Speaker 2: Middle East is clouding the picture on interest rates. Speaking

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Speaker 2: at the Bloomberg and Best conference in New York, cash

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Speaker 2: Caari says it's too soon to see the inflation impact

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Speaker 2: from the conflict.

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Speaker 12: The labor market is pretty good, a little bit getting softer,

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Speaker 12: but generally speaking, we're around the bands of our dual mandate,

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Speaker 12: and so I felt like policy was in a pretty

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Speaker 12: good place and we have the luxury of just letting

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Speaker 12: it gradually glide back to neutral. Now we need to

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Speaker 12: see with this new shock, potentially new shock hitting the

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Speaker 12: global economy is how long is the effect and how

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Speaker 12: big is the effect?

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Speaker 2: Minneapolis Fed President Neilkashkari had penciled in one interest rate

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Speaker 2: cut this year, but he says the attacks on Iran

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Speaker 2: make him less certain about that.

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Speaker 3: Programming note here now, Karen, as we've just seen this

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Speaker 3: past weekend, markets may close on Friday, but the world doesn't.

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Speaker 3: And that is why we're bringing you a new live

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Speaker 3: radi and TV show, Bloomberg This Weekend, looks beyond the

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Speaker 3: daily headlines to the bigger themes driving politics, business and culture.

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Speaker 3: Joined David Gura, Christina Raffini, and Lisa Mattel for smart

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Speaker 3: conversations and in depth interviews that help make sense of

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Speaker 3: the week that's been and what comes next. Get Bloomberg

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Speaker 3: This Weekend live Saturdays and Sundays from seven am Eastern

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Speaker 3: on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business App.

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Speaker 2: And it's time now for look at some of the

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Speaker 2: other stories making news in New York and around the world.

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Speaker 2: And for that we're joined by Bloomberg's Michael Barr. Michael,

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Speaker 2: Good Morning, Good Morning, Karen.

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Speaker 13: A federal judge ruled that New York City can continue

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Speaker 13: its congestion pricing program. Judge Lewis Lyman found that the

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Speaker 13: Trump administration's attempt to kill the program was arbitrary and capricious.

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Speaker 13: After the decision, New York Governor Kathy Hokeel posted a

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Speaker 13: short video online celebrating the ruling.

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Speaker 12: David New York is prevailed and all the attacks living

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Speaker 12: Unleased pilate from adminstration on yeshising one again in court.

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Speaker 13: The ruling is a financial win for the Metropolitan Transportation Authority,

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Speaker 13: which can keep operating the program and use its revenue

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Speaker 13: to modernize the transit system. The Trump administration disagrees with

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Speaker 13: the court's decision and is considering an appeal. A Georgia

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Speaker 13: man who gave his teenage son the gun he is

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Speaker 13: accused of using to kill two students and two teachers

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Speaker 13: at a high school has been convicted of second degree

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Speaker 13: murder and involuntary manslaughter. Colin Gray also has found guilty

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Speaker 13: Tuesday of all other charges in the September twenty twenty

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Speaker 13: fourth shooting at Apalachi High School northeast of Atlanta. Prosecutors

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Speaker 13: said Gray gave his son access to a gun and

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Speaker 13: ammunition despite sufficient warning that Colt Gray would harm and

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Speaker 13: endanger of the people. New York Mayor Zoron Mamdani and

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Speaker 13: Governor Cathy Hochel unveiled the first neighborhoods to get free

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Speaker 13: daycare for two year olds under the two Care program

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Speaker 13: I'm starting this fall. The first four communities that will

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Speaker 13: receive two thousand two K seats include Washington Heights and

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Speaker 13: the Rockaways. Mayor mem Donnie also responded to a local

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Speaker 13: New York City radio host reference to him as a

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Speaker 13: radical islam cockroach.

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Speaker 9: I am not ashamed of who I am. I am

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Speaker 9: not ashamed of my faith. I am not ashamed of

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Speaker 9: being the first Muslim mayor in the history of our city.

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Speaker 9: And there's no amount of racism that will change the

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Speaker 9: way in which I lead or the commitment that I

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Speaker 9: hold to each and every New Yorker in the city.

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Speaker 13: Senator Chuck Schumer of New York condemned the radio host

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Speaker 13: comments and a social media post. Schumer says, it's a

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Speaker 13: disgusting display of bigotry and Islamophobia. Global news twenty four

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Speaker 13: hours a day and whenever you want it with Bloomberg

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Speaker 13: News Now now Michael Barr and this is Bloomberg, Karen.

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Speaker 5: Thanks Michael.

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Speaker 2: Time now for our Bloomberg Sports update, and for that

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Speaker 2: we bring in John stash Hour.

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Speaker 14: Thanks Darren for teams rankd the town to one in

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Speaker 14: college basketball, all lost number nine Nebraska by twenty to UCLA,

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Speaker 14: tenth thrank Texas Tech beaten by TCU, Number fourteen. Kansas

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Speaker 14: fell to Arizona State in sixteenth ranked Alabama beaten by Georgia.

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Speaker 14: Team USA with an exhibition game against the San Francisco

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Speaker 14: Giants getting ready for the World Baseball Classic, USA won

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Speaker 14: it fifteen to one. Atlanta Brey's outfielder jerksenprof Profar, who

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Speaker 14: served an eighty game suspension last year, will now serve

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Speaker 14: a one hundred and sixty two game suspension for PD violation.

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Speaker 14: That's a Bloomberg Sports update.

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Speaker 5: Stay with us.

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Speaker 2: More from Bloomberg day Break coming up after.

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Speaker 1: This Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business album. This is Bloomberg Daybreak.

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Speaker 5: Good morning, I'm Nathan Hager.

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Speaker 3: With the war with Iran now into a fifth day,

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Speaker 3: Fighting continues to spread across the Middle East with little

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Speaker 3: sign of Led up. President Trump is promising the US

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Speaker 3: will insure a safe passage of oil through the Gulf.

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Speaker 3: As second Terry of State Marco Rubio continues to defend

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Speaker 3: the president's decision to attack. The bottom line is this

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Speaker 3: the President's determined we were not going to get hit first.

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Speaker 5: It's that simple, guys. We are not going to put

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Speaker 5: American's troops in harmsway.

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Speaker 3: Secretary of State Marco Rubio in Washington. We're joined now

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Speaker 3: by Bloomberg's Middle East Breaking News editor Patrick Sykes. And Patrick,

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Speaker 3: if you could just catch us up on some of

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Speaker 3: the latest headlines that have been coming out of the

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Speaker 3: Middle East.

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Speaker 5: Good morning morning.

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Speaker 14: Yeah.

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Speaker 15: We saw just a few minutes ago in New York

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Speaker 15: Times reporting that Iran's intelligence ministry had reached out indirectly

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Speaker 15: to the CIA to talk about potential terms for ending

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Speaker 15: the war that would be really de escalatory, if it's true.

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Speaker 15: A slightly surprising place for an offer like that to

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Speaker 15: come from. Obviously, it's been the Foreign Ministry and Iran

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Speaker 15: diplomats that have been involved in most of the oureas

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Speaker 15: so far, and this Temporary Leadership Council as well. Other

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Speaker 15: than that, I think the main thing is this strike

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Speaker 15: we had a few minutes ago on the Saudi oil refinery.

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Speaker 15: Just under line that the risks are still very high

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Speaker 15: for energy assets in the region, and the Golf country's

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Speaker 15: still very much been pulled into the conflict.

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Speaker 3: With this report of the attack on or the planned

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Speaker 3: attack at least on Saudi Arabia's oil refinery. That puts

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Speaker 3: more attention, doesn't it. On President Trump's promises assurances that

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Speaker 3: the US would be able to provide a safe passage

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Speaker 3: of oil through the Golf through an insurance program.

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Speaker 5: How would that work exactly?

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Speaker 15: I think that's a big question for many still in

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Speaker 15: the industry. In theory, it sounds great, right, we'll handle

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Speaker 15: the insurance, which is exactly what's gone up in price

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Speaker 15: because of these events, and we'll escort you militarily with

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Speaker 15: un naval assets in the region. I think the practicalities

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Speaker 15: around the insurance are still very much to be clarified.

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Speaker 15: And on the escort side, you know, that might provide

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Speaker 15: some peace of mind. I think for many even that

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Speaker 15: wouldn't be enough. And the other thing is that you're

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Speaker 15: still looking at a serious drop in volume of transits

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Speaker 15: if that's happening, because you know they're only going to

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Speaker 15: be able to do those controlled naval transits at a

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Speaker 15: very steady pace with all the kind of precautions that

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Speaker 15: they involved, So it's still not going to be anything

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Speaker 15: like a return to normal.

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Speaker 3: You mentioned the headline from the New York Times about

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Speaker 3: apparent outreach from Iran's spy agencies looking for a possible

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Speaker 3: off ramp for this war within the first.

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Speaker 5: Day or so.

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Speaker 3: Who would be providing that off ramp given that Israel

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Speaker 3: has been targeting the very room where experts are trying

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Speaker 3: to name a new supreme leader.

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Speaker 15: Indeed, and I think the intelligence ministry itself has also

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Speaker 15: been targeted. I mean, I think at a time like this,

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Speaker 15: when the US is ready, strategy has kind of been

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Speaker 15: to try and split up the Iranian state and break

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Speaker 15: down those chains of command. It does remain to be

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Speaker 15: seen kind of how authoritative any offer like that would be.

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Speaker 15: They're obviously hoping, we assume, for a kind of pliant

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Speaker 15: constituency within Iran that would be willing to make a deal,

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Speaker 15: end the war and resolve all of those contentious issues

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Speaker 15: from nuclear to missiles that have brought us to this point.

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Speaker 15: But as we've seen from the rhetoric and obviously the

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Speaker 15: missiles that are still flying. There's still plenty of officials

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Speaker 15: in Iran that clearly think they can win this war.

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Speaker 15: They can at least last out the US will to

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Speaker 15: continue it, and for them it's an existential moment.

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Speaker 3: Thank you for this once again, Patrick, appreciate the update

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Speaker 3: that is Patrick Syke's Middle East breaking news editor for

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Speaker 3: Bloomberg News with us this morning from Istanbul. Want to

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Speaker 3: turn now to domestic politics because we've had the kickoff

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Speaker 3: of midterm election season with key primary races in Texas,

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Speaker 3: North Carolina, Arkansas as well. One of the big ones

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Speaker 3: for four terms, Republican Senator John Cornyn is headed to

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Speaker 3: a runoff with State Attorney General Ken Paxton.

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Speaker 5: For more.

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Speaker 3: Let's bring in Bloomberg News Editor at Large Marty Schanker

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Speaker 3: and Marty, I think we knew this was going to

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Speaker 3: be a hotly contested race. What does this result tell

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Speaker 3: us about what we can expect in November?

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Speaker 5: Good morning.

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Speaker 16: I don't know what you can say about November, but

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Speaker 16: what we can say is that it's going to be

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Speaker 16: one of the more expensive Senate runoffs in history. That

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Speaker 16: John Cornyan already spent seventy million dollars to fend off

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Speaker 16: Ken Paxton, and he just eked out a very narrow win,

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Speaker 16: but still faces a runoff eighty days from now, and

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Speaker 16: it's likely to be acrimonious and of national importance.

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Speaker 5: As it already has been.

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Speaker 3: Did the other candidate in this race, the other main candidate,

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Speaker 3: Wesley Hunt, plays spoiler here or does this point to

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Speaker 3: a bigger vulnerability for the incumbent?

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Speaker 16: Well, he definitely drew over twelve percent of the vote,

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Speaker 16: which prevented either one of the other two candidates from

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Speaker 16: getting the fifty percent needed to get the nomination itself,

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Speaker 16: So he did play spoiler, but he won't be there

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Speaker 16: for the runoff in May, so it'll be a Paxton

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Speaker 16: Cornyn race and it's likely to be extremely nasty.

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Speaker 3: And whoever does come out of that race is going

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Speaker 3: to face James Taalrico, a upstart on the Democratic side

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Speaker 3: fending off Jasmine Crockett. That kind of ended a bit

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Speaker 3: acrimoniously as well, didn't it.

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Speaker 16: Yeah, although not nearly as much as the Republicans. And

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Speaker 16: don't forget that Donald Trump did not endorse the candidate

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Speaker 16: on the Republican side. On the Democratic side, there were

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Speaker 16: voting difficulties because they changed the rules at the last minute,

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Speaker 16: and it was many Democratic voters were turned away from

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Speaker 16: the polling booths.

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Speaker 17: And it'll be interested to see whether Jasmine Crockett makes

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Speaker 17: that an issue or whether she just for the sake

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Speaker 17: of unity, endorses tell Rico and the Democrats can move

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Speaker 17: on against a race against what they hope is a

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Speaker 17: weaker Ken Paxton.

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Speaker 3: Does this point to an issue that could crop up

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Speaker 3: again in November?

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Speaker 5: This rule change.

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Speaker 16: Absolutely could, and it's not just in Texas. The redistinct

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Speaker 16: redistricting efforts in a variety of states could cause some

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Speaker 16: confusion at the polling place. But at the same time,

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Speaker 16: the turnout in Texas and in South Carolina was extremely

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Speaker 16: encouraging for Democrats. There was huge lines, voters seemed very motive,

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Speaker 16: and that's probably a positive sign for the Democrats.

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Speaker 2: This is Bloomberg Daybreak, your morning podcast on the stories

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Speaker 5: And I'm Nathan Hager.

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Speaker 3: Join us again tomorrow morning for all the news you

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Speaker 3: need to start your day right here on Bloomberg Day

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Speaker 3: Bray