Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: Karen, we begin with the latest developments in the Middle East.
Speaker 3: The war has entered a fifth day of fighting and
Speaker 3: there are no signs of easing. Israel says it's striking
Speaker 3: Iranian targets as well as Hesbala sites in Lebanon, as
Speaker 3: Iran continues to fire missile at Arab states across the
Speaker 3: Middle East. Saudi Arabia says there was just an attempt
Speaker 3: this morning on one of its key refineries at Rostanura.
Speaker 3: The kingdom says there was no damage. We get the
Speaker 3: latest from Bloomberg Middle East Managing Editor Paul Wallace.
Speaker 4: This conflict continues and there's no sign of let up
Speaker 4: from Iran or the US or Israel.
Speaker 5: The latter two continue.
Speaker 4: To strike Iran heavily, and Iran is striking back very
Speaker 4: intensely against golf Arab states. It seems at the moment
Speaker 4: as if Iran is concentrating most of its power on
Speaker 4: those golf out states rather than Israel and the likes
Speaker 4: of the UAE, the likes of Saudi Arabia. The census
Speaker 4: very much that Iran is using its drones now, of
Speaker 4: which it has far more than it does, cruise and
Speaker 4: ballistic missiles to target golf Ab states.
Speaker 3: Bloomberg's Paul Wallace says the State Department has now announced
Speaker 3: plans to help evacuate Americans who want to leave the
Speaker 3: Middle East well Nathan.
Speaker 2: President Trump said the US would provide insurance guarantees and
Speaker 2: naval escorts to ensure safe passage for oil tankers and
Speaker 2: other vessels through the Strait of Horror moves. That's not
Speaker 2: having too much impact on the oil market right now.
Speaker 2: Crude is up again. N I makes screwed oil is
Speaker 2: at seventy six dollars sixty one cents of barrel brent
Speaker 2: is it eighty three dollars eighty cents. Meanwhile, the President
Speaker 2: said he ordered the attack on a run because he
Speaker 2: thought Tehran was about to attack first, and that Israel
Speaker 2: did not force his hand to initiate the air assaults.
Speaker 2: Trump spoke yesterday at the Oval Office.
Speaker 6: Based on the way the negotiation was going, I think
Speaker 6: they were going to attack first, and I didn't want
Speaker 6: that to happen. So, if anything, I might have forced
Speaker 6: Israel's hand, but Israel was ready and we were ready.
Speaker 2: President Trump is threatening to cut off all trade with
Speaker 2: Spain after that country denied the US access to its
Speaker 2: military bases for the campaign against Iran. The President says
Speaker 2: he has already instructed Treasury Secretary Scot Vesn't to sever
Speaker 2: the relationship.
Speaker 6: I told Scott to cut off all dealings with Spain.
Speaker 6: They were the only country that in NATO would not
Speaker 6: agree to go up to five percent. I don't think
Speaker 6: they would have agreed to go up to anything. They
Speaker 6: wanted to keep it at two percent, and they don't
Speaker 6: pay the two percent. So we're going to cut off
Speaker 6: all trade with Spain.
Speaker 2: A Spanish government official said that the US must respect
Speaker 2: international trade agreements and the autonomy of private companies.
Speaker 3: And more world leaders are speaking out about the war Caaren.
Speaker 3: Canadian Prime Minister Mark Carney is criticizing the US and
Speaker 3: Israel for striking Iran without consulting allies or the United Nations.
Speaker 7: The current conflict is another example of the failure of
Speaker 7: the international order, despite decades of UN Security Council resolutions,
Speaker 7: the work of the International Atomic Energy Agency, in a
Speaker 7: succession of sanctions and diplomatic frameworks arounds nuclear threat remains
Speaker 7: and now the United States and Israel have acted without
Speaker 7: engaging in the UN or consulting with allies, including Canada.
Speaker 3: Canadian Prime Minister Marcarney spoke earlier in Sydney and.
Speaker 5: Nathan and Europe.
Speaker 2: UK's Chancellor Rachel Reeves says Britain will not make decisions
Speaker 2: about Iran based on US trade tie. Speaking of Bloomberg,
Speaker 2: Reeves explained why the government was not taking part in
Speaker 2: the strikes on Tehran.
Speaker 8: When it comes to decisions around using British armed forces
Speaker 8: to take part in conflicts around the world, it is
Speaker 8: very important that we charge those on whether it is
Speaker 8: legal and whether it is the right thing to do.
Speaker 8: You can't make a decision about whether to get British
Speaker 8: en forces involved in a conflict because it may or
Speaker 8: may not make it more likely to get a trade deal.
Speaker 2: And Rachel Rizo speaking of Bloomberg after President Trump criticized
Speaker 2: Prime Minister Keir Starmer over the UK's limited support.
Speaker 3: Let's turn to politics now, Karen back here in the US.
Speaker 3: The results are in from the first primary races in
Speaker 3: the twenty twenty six mid term elections in Texas. Four
Speaker 3: term Republican Senator John Cornan is headed to a runoff
Speaker 3: with State Attorney General Ken Paxton.
Speaker 5: The people of Texas made your voices heard.
Speaker 3: After all the personal attacks, which there were many, and
Speaker 3: after all the lies. You listen to what John corn
Speaker 3: was selling, and you weren't buying it. With eighty eight
Speaker 3: percent of ballots counted, Ken Paxton trails Senator Cornyon by
Speaker 3: one percentage point forty point nine to forty one point
Speaker 3: nine percent. Republican Congressman Wesley Hunt received thirteen point four
Speaker 3: percent of the votes, denying either candidate, a majority that
Speaker 3: means Cornin and Paxton will face off again in May.
Speaker 2: Well Nathan and the close watch Democratic Senate prime array.
Speaker 2: State Representative James Tellerrico defeated Congressoman Jasmine Crockett fifty three
Speaker 2: point one to forty five point six percent, but the
Speaker 2: vote was marked by confusion. In Crockett's home base of
Speaker 2: Dallas County, voters there and in at least one other
Speaker 2: county reported being turned away from polling places due to
Speaker 2: a rule change that required them to vote at their
Speaker 2: local precinct. In past elections, they could vote anywhere in
Speaker 2: the county. A judge extended the voting by two hours,
Speaker 2: but Crockett says her heart is broken.
Speaker 9: We were able to keep the polls open, but I
Speaker 9: can tell you now that people have been disenfranchised.
Speaker 2: Congress Woman Jasmine Crockett says the result could hinge on
Speaker 2: who was or was not allowed to vote in Dallas County.
Speaker 2: Tall Rico also blamed Republicans for the rule change and
Speaker 2: called for a voting hours to be extended.
Speaker 3: In other key races, Karen Texas Republican Dan Crenshaw is
Speaker 3: the first incumbent congressman to lose in the midterms. He
Speaker 3: felt to conservative state lawmaker Steve Toth fifty six point
Speaker 3: three to forty point two percent. Another Republican in Texas,
Speaker 3: Tony Gonzalez, is headed to a runoff with gun rights
Speaker 3: YouTuber Brandon Herrera. Gonzalez has faced allegations of an affair
Speaker 3: with a staffer who later died by suicide. And in
Speaker 3: North Carolina, a high profile Senate race is set for November.
Speaker 3: Former Governor Roy Cooper won the Democratic primary. He will
Speaker 3: face former Republican National Committee Chairman Michael Wattley in what
Speaker 3: could be one of the most expensive Senate races.
Speaker 5: In the country.
Speaker 2: Nathan, Let's turn to the nation's capital now. Homeland Security
Speaker 2: Secretary Christy Nome defended the immigration crackdown during her testimony
Speaker 2: before the Senate Judiciary Committee, and Bloomberg's Amy Morris reports
Speaker 2: from Washington.
Speaker 10: Nome faced bipartisan backlash over the immigration crackdown. Republican Senator
Speaker 10: Tom Tillis called for Nome's resignation, citing allegations that she
Speaker 10: blocked an Inspector general from investigating complaints against DHS.
Speaker 11: As of today, I'll be informing leadership that I'm putting
Speaker 11: a hold on any odd wock nominations until I get.
Speaker 5: A response, and in two waits.
Speaker 11: If I don't get a response, I'm going to deny
Speaker 11: quorum and mark up in as many committees as I
Speaker 11: can until I get a response.
Speaker 10: Till Us accused Nome of trying to hit her immigration
Speaker 10: detention quotas rather than concentrating on dangerous undocumented immigrants. Nom
Speaker 10: denied interfering with any investigations in Washington. Amy Morris, Bloomberg Radio,
Speaker 10: All right.
Speaker 5: Amy, thank you.
Speaker 3: There are new developments in the Jeffrey Epstein investigation. The
Speaker 3: top lawyer at Goldman Sachs Kathy Rumler says she's accepted
Speaker 3: an invitation to testify before the House Oversight Committee on
Speaker 3: April twenty first. The Justice Department's files show Rumbler accepted
Speaker 3: tens of thousands of dollars of gifts from the late
Speaker 3: sex offender and offered advice on protecting his reputation in
Speaker 3: the years before he died. Rumnollyer announced plans to resign
Speaker 3: from Goldman last month. Her spokeswoman says she did nothing
Speaker 3: wrong and did not know about Epstein's crime. The Oversight
Speaker 3: Committee is also requesting interviews with six other people, including
Speaker 3: Microsoft co founder Bill Gates and to Poblo Global Management
Speaker 3: co founder Leon Black. The panels asking for their testimony
Speaker 3: in May.
Speaker 2: Let's turn to the markets now, Nathan and futures. They
Speaker 2: have turned higher. S and P futures now up a
Speaker 2: quarter percent, and this is aunder yesterday's losses on Wall Street.
Speaker 2: The S and P five hundred did fall almost one
Speaker 2: percent yesterday, but at one point it was down two
Speaker 2: and a half percent. Goldman Sachs chairman David Solomon says
Speaker 2: he's been surprised by the quote benign reaction and financial
Speaker 2: markets to the Middle East conflict he told the Australian
Speaker 2: Financial Review Business Summit in Sydney. It will take weeks
Speaker 2: to understand more about the situation.
Speaker 5: Well, it's been anything but benign. In South Korea, Karen.
Speaker 3: The COSPY index there suffered its biggest one day crash
Speaker 3: on record, plunging another twelve percent today following a seven
Speaker 3: point two percent drop yesterday. The sell off is a
Speaker 3: reminder of how swiftly market exuberants can turn into anxiety
Speaker 3: in satiable demand for memory chips, and helped push the
Speaker 3: costp up nearly fifty percent at its peak this year.
Speaker 2: Nathan Minneapolis FED president Neilkashkari said the war in the
Speaker 2: Middle East is clouding the picture on interest rates. Speaking
Speaker 2: at the Bloomberg and Best conference in New York, cash
Speaker 2: Caari says it's too soon to see the inflation impact
Speaker 2: from the conflict.
Speaker 12: The labor market is pretty good, a little bit getting softer,
Speaker 12: but generally speaking, we're around the bands of our dual mandate,
Speaker 12: and so I felt like policy was in a pretty
Speaker 12: good place and we have the luxury of just letting
Speaker 12: it gradually glide back to neutral. Now we need to
Speaker 12: see with this new shock, potentially new shock hitting the
Speaker 12: global economy is how long is the effect and how
Speaker 12: big is the effect?
Speaker 2: Minneapolis Fed President Neilkashkari had penciled in one interest rate
Speaker 2: cut this year, but he says the attacks on Iran
Speaker 2: make him less certain about that.
Speaker 3: Programming note here now, Karen, as we've just seen this
Speaker 3: past weekend, markets may close on Friday, but the world doesn't.
Speaker 3: And that is why we're bringing you a new live
Speaker 3: radi and TV show, Bloomberg This Weekend, looks beyond the
Speaker 3: daily headlines to the bigger themes driving politics, business and culture.
Speaker 3: Joined David Gura, Christina Raffini, and Lisa Mattel for smart
Speaker 3: conversations and in depth interviews that help make sense of
Speaker 3: the week that's been and what comes next. Get Bloomberg
Speaker 3: This Weekend live Saturdays and Sundays from seven am Eastern
Speaker 3: on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business App.
Speaker 2: And it's time now for look at some of the
Speaker 2: other stories making news in New York and around the world.
Speaker 2: And for that we're joined by Bloomberg's Michael Barr. Michael,
Speaker 2: Good Morning, Good Morning, Karen.
Speaker 13: A federal judge ruled that New York City can continue
Speaker 13: its congestion pricing program. Judge Lewis Lyman found that the
Speaker 13: Trump administration's attempt to kill the program was arbitrary and capricious.
Speaker 13: After the decision, New York Governor Kathy Hokeel posted a
Speaker 13: short video online celebrating the ruling.
Speaker 12: David New York is prevailed and all the attacks living
Speaker 12: Unleased pilate from adminstration on yeshising one again in court.
Speaker 13: The ruling is a financial win for the Metropolitan Transportation Authority,
Speaker 13: which can keep operating the program and use its revenue
Speaker 13: to modernize the transit system. The Trump administration disagrees with
Speaker 13: the court's decision and is considering an appeal. A Georgia
Speaker 13: man who gave his teenage son the gun he is
Speaker 13: accused of using to kill two students and two teachers
Speaker 13: at a high school has been convicted of second degree
Speaker 13: murder and involuntary manslaughter. Colin Gray also has found guilty
Speaker 13: Tuesday of all other charges in the September twenty twenty
Speaker 13: fourth shooting at Apalachi High School northeast of Atlanta. Prosecutors
Speaker 13: said Gray gave his son access to a gun and
Speaker 13: ammunition despite sufficient warning that Colt Gray would harm and
Speaker 13: endanger of the people. New York Mayor Zoron Mamdani and
Speaker 13: Governor Cathy Hochel unveiled the first neighborhoods to get free
Speaker 13: daycare for two year olds under the two Care program
Speaker 13: I'm starting this fall. The first four communities that will
Speaker 13: receive two thousand two K seats include Washington Heights and
Speaker 13: the Rockaways. Mayor mem Donnie also responded to a local
Speaker 13: New York City radio host reference to him as a
Speaker 13: radical islam cockroach.
Speaker 9: I am not ashamed of who I am. I am
Speaker 9: not ashamed of my faith. I am not ashamed of
Speaker 9: being the first Muslim mayor in the history of our city.
Speaker 9: And there's no amount of racism that will change the
Speaker 9: way in which I lead or the commitment that I
Speaker 9: hold to each and every New Yorker in the city.
Speaker 13: Senator Chuck Schumer of New York condemned the radio host
Speaker 13: comments and a social media post. Schumer says, it's a
Speaker 13: disgusting display of bigotry and Islamophobia. Global news twenty four
Speaker 13: hours a day and whenever you want it with Bloomberg
Speaker 13: News Now now Michael Barr and this is Bloomberg, Karen.
Speaker 5: Thanks Michael.
Speaker 2: Time now for our Bloomberg Sports update, and for that
Speaker 2: we bring in John stash Hour.
Speaker 14: Thanks Darren for teams rankd the town to one in
Speaker 14: college basketball, all lost number nine Nebraska by twenty to UCLA,
Speaker 14: tenth thrank Texas Tech beaten by TCU, Number fourteen. Kansas
Speaker 14: fell to Arizona State in sixteenth ranked Alabama beaten by Georgia.
Speaker 14: Team USA with an exhibition game against the San Francisco
Speaker 14: Giants getting ready for the World Baseball Classic, USA won
Speaker 14: it fifteen to one. Atlanta Brey's outfielder jerksenprof Profar, who
Speaker 14: served an eighty game suspension last year, will now serve
Speaker 14: a one hundred and sixty two game suspension for PD violation.
Speaker 14: That's a Bloomberg Sports update.
Speaker 5: Stay with us.
Speaker 2: More from Bloomberg day Break coming up after.
Speaker 1: This 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 album. This is Bloomberg Daybreak.
Speaker 5: Good morning, I'm Nathan Hager.
Speaker 3: With the war with Iran now into a fifth day,
Speaker 3: Fighting continues to spread across the Middle East with little
Speaker 3: sign of Led up. President Trump is promising the US
Speaker 3: will insure a safe passage of oil through the Gulf.
Speaker 3: As second Terry of State Marco Rubio continues to defend
Speaker 3: the president's decision to attack. The bottom line is this
Speaker 3: the President's determined we were not going to get hit first.
Speaker 5: It's that simple, guys. We are not going to put
Speaker 5: American's troops in harmsway.
Speaker 3: Secretary of State Marco Rubio in Washington. We're joined now
Speaker 3: by Bloomberg's Middle East Breaking News editor Patrick Sykes. And Patrick,
Speaker 3: if you could just catch us up on some of
Speaker 3: the latest headlines that have been coming out of the
Speaker 3: Middle East.
Speaker 5: Good morning morning.
Speaker 14: Yeah.
Speaker 15: We saw just a few minutes ago in New York
Speaker 15: Times reporting that Iran's intelligence ministry had reached out indirectly
Speaker 15: to the CIA to talk about potential terms for ending
Speaker 15: the war that would be really de escalatory, if it's true.
Speaker 15: A slightly surprising place for an offer like that to
Speaker 15: come from. Obviously, it's been the Foreign Ministry and Iran
Speaker 15: diplomats that have been involved in most of the oureas
Speaker 15: so far, and this Temporary Leadership Council as well. Other
Speaker 15: than that, I think the main thing is this strike
Speaker 15: we had a few minutes ago on the Saudi oil refinery.
Speaker 15: Just under line that the risks are still very high
Speaker 15: for energy assets in the region, and the Golf country's
Speaker 15: still very much been pulled into the conflict.
Speaker 3: With this report of the attack on or the planned
Speaker 3: attack at least on Saudi Arabia's oil refinery. That puts
Speaker 3: more attention, doesn't it. On President Trump's promises assurances that
Speaker 3: the US would be able to provide a safe passage
Speaker 3: of oil through the Golf through an insurance program.
Speaker 5: How would that work exactly?
Speaker 15: I think that's a big question for many still in
Speaker 15: the industry. In theory, it sounds great, right, we'll handle
Speaker 15: the insurance, which is exactly what's gone up in price
Speaker 15: because of these events, and we'll escort you militarily with
Speaker 15: un naval assets in the region. I think the practicalities
Speaker 15: around the insurance are still very much to be clarified.
Speaker 15: And on the escort side, you know, that might provide
Speaker 15: some peace of mind. I think for many even that
Speaker 15: wouldn't be enough. And the other thing is that you're
Speaker 15: still looking at a serious drop in volume of transits
Speaker 15: if that's happening, because you know they're only going to
Speaker 15: be able to do those controlled naval transits at a
Speaker 15: very steady pace with all the kind of precautions that
Speaker 15: they involved, So it's still not going to be anything
Speaker 15: like a return to normal.
Speaker 3: You mentioned the headline from the New York Times about
Speaker 3: apparent outreach from Iran's spy agencies looking for a possible
Speaker 3: off ramp for this war within the first.
Speaker 5: Day or so.
Speaker 3: Who would be providing that off ramp given that Israel
Speaker 3: has been targeting the very room where experts are trying
Speaker 3: to name a new supreme leader.
Speaker 15: Indeed, and I think the intelligence ministry itself has also
Speaker 15: been targeted. I mean, I think at a time like this,
Speaker 15: when the US is ready, strategy has kind of been
Speaker 15: to try and split up the Iranian state and break
Speaker 15: down those chains of command. It does remain to be
Speaker 15: seen kind of how authoritative any offer like that would be.
Speaker 15: They're obviously hoping, we assume, for a kind of pliant
Speaker 15: constituency within Iran that would be willing to make a deal,
Speaker 15: end the war and resolve all of those contentious issues
Speaker 15: from nuclear to missiles that have brought us to this point.
Speaker 15: But as we've seen from the rhetoric and obviously the
Speaker 15: missiles that are still flying. There's still plenty of officials
Speaker 15: in Iran that clearly think they can win this war.
Speaker 15: They can at least last out the US will to
Speaker 15: continue it, and for them it's an existential moment.
Speaker 3: Thank you for this once again, Patrick, appreciate the update
Speaker 3: that is Patrick Syke's Middle East breaking news editor for
Speaker 3: Bloomberg News with us this morning from Istanbul. Want to
Speaker 3: turn now to domestic politics because we've had the kickoff
Speaker 3: of midterm election season with key primary races in Texas,
Speaker 3: North Carolina, Arkansas as well. One of the big ones
Speaker 3: for four terms, Republican Senator John Cornyn is headed to
Speaker 3: a runoff with State Attorney General Ken Paxton.
Speaker 5: For more.
Speaker 3: Let's bring in Bloomberg News Editor at Large Marty Schanker
Speaker 3: and Marty, I think we knew this was going to
Speaker 3: be a hotly contested race. What does this result tell
Speaker 3: us about what we can expect in November?
Speaker 5: Good morning.
Speaker 16: I don't know what you can say about November, but
Speaker 16: what we can say is that it's going to be
Speaker 16: one of the more expensive Senate runoffs in history. That
Speaker 16: John Cornyan already spent seventy million dollars to fend off
Speaker 16: Ken Paxton, and he just eked out a very narrow win,
Speaker 16: but still faces a runoff eighty days from now, and
Speaker 16: it's likely to be acrimonious and of national importance.
Speaker 5: As it already has been.
Speaker 3: Did the other candidate in this race, the other main candidate,
Speaker 3: Wesley Hunt, plays spoiler here or does this point to
Speaker 3: a bigger vulnerability for the incumbent?
Speaker 16: Well, he definitely drew over twelve percent of the vote,
Speaker 16: which prevented either one of the other two candidates from
Speaker 16: getting the fifty percent needed to get the nomination itself,
Speaker 16: So he did play spoiler, but he won't be there
Speaker 16: for the runoff in May, so it'll be a Paxton
Speaker 16: Cornyn race and it's likely to be extremely nasty.
Speaker 3: And whoever does come out of that race is going
Speaker 3: to face James Taalrico, a upstart on the Democratic side
Speaker 3: fending off Jasmine Crockett. That kind of ended a bit
Speaker 3: acrimoniously as well, didn't it.
Speaker 16: Yeah, although not nearly as much as the Republicans. And
Speaker 16: don't forget that Donald Trump did not endorse the candidate
Speaker 16: on the Republican side. On the Democratic side, there were
Speaker 16: voting difficulties because they changed the rules at the last minute,
Speaker 16: and it was many Democratic voters were turned away from
Speaker 16: the polling booths.
Speaker 17: And it'll be interested to see whether Jasmine Crockett makes
Speaker 17: that an issue or whether she just for the sake
Speaker 17: of unity, endorses tell Rico and the Democrats can move
Speaker 17: on against a race against what they hope is a
Speaker 17: weaker Ken Paxton.
Speaker 3: Does this point to an issue that could crop up
Speaker 3: again in November?
Speaker 5: This rule change.
Speaker 16: Absolutely could, and it's not just in Texas. The redistinct
Speaker 16: redistricting efforts in a variety of states could cause some
Speaker 16: confusion at the polling place. But at the same time,
Speaker 16: the turnout in Texas and in South Carolina was extremely
Speaker 16: encouraging for Democrats. There was huge lines, voters seemed very motive,
Speaker 16: and that's probably a positive sign for the Democrats.
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