WEBVTT - War Causes Market Turmoil; Trump Seeks Oil Security

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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<v Speaker 2>are the stories we're following today.

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<v Speaker 3>Karen, we begin with the latest developments in the Middle East.

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<v Speaker 3>The war has entered a fifth day of fighting and

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<v Speaker 3>there are no signs of easing. Israel says it's striking

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<v Speaker 3>Iranian targets as well as Hesbala sites in Lebanon, as

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<v Speaker 3>Iran continues to fire missile at Arab states across the

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<v Speaker 3>Middle East. Saudi Arabia says there was just an attempt

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<v Speaker 3>this morning on one of its key refineries at Rostanura.

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<v Speaker 3>The kingdom says there was no damage. We get the

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<v Speaker 3>latest from Bloomberg Middle East Managing Editor Paul Wallace.

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<v Speaker 4>This conflict continues and there's no sign of let up

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<v Speaker 4>from Iran or the US or Israel.

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<v Speaker 5>The latter two continue.

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<v Speaker 4>To strike Iran heavily, and Iran is striking back very

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<v Speaker 4>intensely against golf Arab states. It seems at the moment

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<v Speaker 4>as if Iran is concentrating most of its power on

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<v Speaker 4>those golf out states rather than Israel and the likes

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<v Speaker 4>of the UAE, the likes of Saudi Arabia. The census

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<v Speaker 4>very much that Iran is using its drones now, of

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<v Speaker 4>which it has far more than it does, cruise and

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<v Speaker 4>ballistic missiles to target golf Ab states.

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<v Speaker 3>Bloomberg's Paul Wallace says the State Department has now announced

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<v Speaker 3>plans to help evacuate Americans who want to leave the

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<v Speaker 3>Middle East well Nathan.

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<v Speaker 2>President Trump said the US would provide insurance guarantees and

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<v Speaker 2>naval escorts to ensure safe passage for oil tankers and

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<v Speaker 2>other vessels through the Strait of Horror moves. That's not

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<v Speaker 2>having too much impact on the oil market right now.

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<v Speaker 2>Crude is up again. N I makes screwed oil is

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<v Speaker 2>at seventy six dollars sixty one cents of barrel brent

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<v Speaker 2>is it eighty three dollars eighty cents. Meanwhile, the President

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<v Speaker 2>said he ordered the attack on a run because he

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<v Speaker 2>thought Tehran was about to attack first, and that Israel

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<v Speaker 2>did not force his hand to initiate the air assaults.

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<v Speaker 2>Trump spoke yesterday at the Oval Office.

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<v Speaker 6>Based on the way the negotiation was going, I think

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<v Speaker 6>they were going to attack first, and I didn't want

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<v Speaker 6>that to happen. So, if anything, I might have forced

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<v Speaker 6>Israel's hand, but Israel was ready and we were ready.

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<v Speaker 2>President Trump is threatening to cut off all trade with

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<v Speaker 2>Spain after that country denied the US access to its

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<v Speaker 2>military bases for the campaign against Iran. The President says

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<v Speaker 2>he has already instructed Treasury Secretary Scot Vesn't to sever

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<v Speaker 2>the relationship.

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<v Speaker 6>I told Scott to cut off all dealings with Spain.

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<v Speaker 6>They were the only country that in NATO would not

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<v Speaker 6>agree to go up to five percent. I don't think

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<v Speaker 6>they would have agreed to go up to anything. They

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<v Speaker 6>wanted to keep it at two percent, and they don't

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<v Speaker 6>pay the two percent. So we're going to cut off

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<v Speaker 6>all trade with Spain.

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<v Speaker 2>A Spanish government official said that the US must respect

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<v Speaker 2>international trade agreements and the autonomy of private companies.

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<v Speaker 3>And more world leaders are speaking out about the war Caaren.

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<v Speaker 3>Canadian Prime Minister Mark Carney is criticizing the US and

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<v Speaker 3>Israel for striking Iran without consulting allies or the United Nations.

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<v Speaker 7>The current conflict is another example of the failure of

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<v Speaker 7>the international order, despite decades of UN Security Council resolutions,

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<v Speaker 7>the work of the International Atomic Energy Agency, in a

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<v Speaker 7>succession of sanctions and diplomatic frameworks arounds nuclear threat remains

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<v Speaker 7>and now the United States and Israel have acted without

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<v Speaker 7>engaging in the UN or consulting with allies, including Canada.

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<v Speaker 3>Canadian Prime Minister Marcarney spoke earlier in Sydney and.

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<v Speaker 5>Nathan and Europe.

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<v Speaker 2>UK's Chancellor Rachel Reeves says Britain will not make decisions

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<v Speaker 2>about Iran based on US trade tie. Speaking of Bloomberg,

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<v Speaker 2>Reeves explained why the government was not taking part in

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<v Speaker 2>the strikes on Tehran.

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<v Speaker 8>When it comes to decisions around using British armed forces

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<v Speaker 8>to take part in conflicts around the world, it is

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<v Speaker 8>very important that we charge those on whether it is

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<v Speaker 8>legal and whether it is the right thing to do.

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<v Speaker 8>You can't make a decision about whether to get British

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<v Speaker 8>en forces involved in a conflict because it may or

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<v Speaker 8>may not make it more likely to get a trade deal.

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<v Speaker 2>And Rachel Rizo speaking of Bloomberg after President Trump criticized

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<v Speaker 2>Prime Minister Keir Starmer over the UK's limited support.

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

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<v Speaker 3>The results are in from the first primary races in

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<v Speaker 3>the twenty twenty six mid term elections in Texas. Four

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<v Speaker 3>term Republican Senator John Cornan is headed to a runoff

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<v Speaker 3>with State Attorney General Ken Paxton.

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<v Speaker 5>The people of Texas made your voices heard.

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<v Speaker 3>After all the personal attacks, which there were many, and

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<v Speaker 3>after all the lies. You listen to what John corn

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

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<v Speaker 3>percent of ballots counted, Ken Paxton trails Senator Cornyon by

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<v Speaker 3>one percentage point forty point nine to forty one point

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<v Speaker 3>nine percent. Republican Congressman Wesley Hunt received thirteen point four

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<v Speaker 3>percent of the votes, denying either candidate, a majority that

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<v Speaker 3>means Cornin and Paxton will face off again in May.

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<v Speaker 2>Well Nathan and the close watch Democratic Senate prime array.

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<v Speaker 2>State Representative James Tellerrico defeated Congressoman Jasmine Crockett fifty three

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<v Speaker 2>point one to forty five point six percent, but the

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<v Speaker 2>vote was marked by confusion. In Crockett's home base of

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<v Speaker 2>Dallas County, voters there and in at least one other

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<v Speaker 2>county reported being turned away from polling places due to

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<v Speaker 2>a rule change that required them to vote at their

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<v Speaker 2>local precinct. In past elections, they could vote anywhere in

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<v Speaker 2>the county. A judge extended the voting by two hours,

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<v Speaker 2>but Crockett says her heart is broken.

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<v Speaker 9>We were able to keep the polls open, but I

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<v Speaker 9>can tell you now that people have been disenfranchised.

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<v Speaker 2>Congress Woman Jasmine Crockett says the result could hinge on

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<v Speaker 2>who was or was not allowed to vote in Dallas County.

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<v Speaker 2>Tall Rico also blamed Republicans for the rule change and

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<v Speaker 2>called for a voting hours to be extended.

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<v Speaker 3>In other key races, Karen Texas Republican Dan Crenshaw is

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<v Speaker 3>the first incumbent congressman to lose in the midterms. He

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<v Speaker 3>felt to conservative state lawmaker Steve Toth fifty six point

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<v Speaker 3>three to forty point two percent. Another Republican in Texas,

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<v Speaker 3>Tony Gonzalez, is headed to a runoff with gun rights

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<v Speaker 3>YouTuber Brandon Herrera. Gonzalez has faced allegations of an affair

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<v Speaker 3>with a staffer who later died by suicide. And in

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<v Speaker 3>North Carolina, a high profile Senate race is set for November.

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<v Speaker 3>Former Governor Roy Cooper won the Democratic primary. He will

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<v Speaker 3>face former Republican National Committee Chairman Michael Wattley in what

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<v Speaker 3>could be one of the most expensive Senate races.

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<v Speaker 5>In the country.

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

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<v Speaker 2>Secretary Christy Nome defended the immigration crackdown during her testimony

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<v Speaker 2>before the Senate Judiciary Committee, and Bloomberg's Amy Morris reports

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<v Speaker 2>from Washington.

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<v Speaker 10>Nome faced bipartisan backlash over the immigration crackdown. Republican Senator

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<v Speaker 10>Tom Tillis called for Nome's resignation, citing allegations that she

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<v Speaker 10>blocked an Inspector general from investigating complaints against DHS.

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<v Speaker 11>As of today, I'll be informing leadership that I'm putting

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<v Speaker 11>a hold on any odd wock nominations until I get.

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<v Speaker 5>A response, and in two waits.

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<v Speaker 11>If I don't get a response, I'm going to deny

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<v Speaker 11>quorum and mark up in as many committees as I

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<v Speaker 11>can until I get a response.

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<v Speaker 10>Till Us accused Nome of trying to hit her immigration

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<v Speaker 10>detention quotas rather than concentrating on dangerous undocumented immigrants. Nom

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<v Speaker 10>denied interfering with any investigations in Washington. Amy Morris, Bloomberg Radio,

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<v Speaker 10>All right.

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<v Speaker 5>Amy, thank you.

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<v Speaker 3>There are new developments in the Jeffrey Epstein investigation. The

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<v Speaker 3>top lawyer at Goldman Sachs Kathy Rumler says she's accepted

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<v Speaker 3>an invitation to testify before the House Oversight Committee on

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<v Speaker 3>April twenty first. The Justice Department's files show Rumbler accepted

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<v Speaker 3>tens of thousands of dollars of gifts from the late

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<v Speaker 3>sex offender and offered advice on protecting his reputation in

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<v Speaker 3>the years before he died. Rumnollyer announced plans to resign

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<v Speaker 3>from Goldman last month. Her spokeswoman says she did nothing

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<v Speaker 3>wrong and did not know about Epstein's crime. The Oversight

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<v Speaker 3>Committee is also requesting interviews with six other people, including

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<v Speaker 3>Microsoft co founder Bill Gates and to Poblo Global Management

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<v Speaker 3>co founder Leon Black. The panels asking for their testimony

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<v Speaker 3>in May.

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

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<v Speaker 2>have turned higher. S and P futures now up a

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

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<v Speaker 2>The S and P five hundred did fall almost one

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<v Speaker 2>percent yesterday, but at one point it was down two

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<v Speaker 2>and a half percent. Goldman Sachs chairman David Solomon says

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<v Speaker 2>he's been surprised by the quote benign reaction and financial

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<v Speaker 2>markets to the Middle East conflict he told the Australian

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<v Speaker 2>Financial Review Business Summit in Sydney. It will take weeks

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<v Speaker 2>to understand more about the situation.

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

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<v Speaker 3>The COSPY index there suffered its biggest one day crash

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<v Speaker 3>on record, plunging another twelve percent today following a seven

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<v Speaker 3>point two percent drop yesterday. The sell off is a

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<v Speaker 3>reminder of how swiftly market exuberants can turn into anxiety

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<v Speaker 3>in satiable demand for memory chips, and helped push the

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<v Speaker 3>costp up nearly fifty percent at its peak this year.

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<v Speaker 2>Nathan Minneapolis FED president Neilkashkari said the war in the

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<v Speaker 2>Middle East is clouding the picture on interest rates. Speaking

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<v Speaker 2>at the Bloomberg and Best conference in New York, cash

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<v Speaker 2>Caari says it's too soon to see the inflation impact

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<v Speaker 2>from the conflict.

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<v Speaker 12>The labor market is pretty good, a little bit getting softer,

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

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<v Speaker 12>and so I felt like policy was in a pretty

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<v Speaker 12>good place and we have the luxury of just letting

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<v Speaker 12>it gradually glide back to neutral. Now we need to

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<v Speaker 12>see with this new shock, potentially new shock hitting the

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<v Speaker 12>global economy is how long is the effect and how

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<v Speaker 12>big is the effect?

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<v Speaker 2>Minneapolis Fed President Neilkashkari had penciled in one interest rate

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<v Speaker 2>cut this year, but he says the attacks on Iran

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<v Speaker 2>make him less certain about that.

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<v Speaker 3>Programming note here now, Karen, as we've just seen this

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

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<v Speaker 3>And that is why we're bringing you a new live

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<v Speaker 3>radi and TV show, Bloomberg This Weekend, looks beyond the

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<v Speaker 3>daily headlines to the bigger themes driving politics, business and culture.

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<v Speaker 3>Joined David Gura, Christina Raffini, and Lisa Mattel for smart

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<v Speaker 3>conversations and in depth interviews that help make sense of

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<v Speaker 3>the week that's been and what comes next. Get Bloomberg

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<v Speaker 3>This Weekend live Saturdays and Sundays from seven am Eastern

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<v Speaker 3>on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business App.

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<v Speaker 2>And it's time now for look at some of the

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<v Speaker 2>other stories making news in New York and around the world.

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

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<v Speaker 2>Good Morning, Good Morning, Karen.

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<v Speaker 13>A federal judge ruled that New York City can continue

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<v Speaker 13>its congestion pricing program. Judge Lewis Lyman found that the

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

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<v Speaker 13>After the decision, New York Governor Kathy Hokeel posted a

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<v Speaker 13>short video online celebrating the ruling.

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<v Speaker 12>David New York is prevailed and all the attacks living

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<v Speaker 12>Unleased pilate from adminstration on yeshising one again in court.

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<v Speaker 13>The ruling is a financial win for the Metropolitan Transportation Authority,

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<v Speaker 13>which can keep operating the program and use its revenue

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<v Speaker 13>to modernize the transit system. The Trump administration disagrees with

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<v Speaker 13>the court's decision and is considering an appeal. A Georgia

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<v Speaker 13>man who gave his teenage son the gun he is

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<v Speaker 13>accused of using to kill two students and two teachers

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<v Speaker 13>at a high school has been convicted of second degree

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<v Speaker 13>murder and involuntary manslaughter. Colin Gray also has found guilty

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<v Speaker 13>Tuesday of all other charges in the September twenty twenty

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<v Speaker 13>fourth shooting at Apalachi High School northeast of Atlanta. Prosecutors

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<v Speaker 13>said Gray gave his son access to a gun and

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<v Speaker 13>ammunition despite sufficient warning that Colt Gray would harm and

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<v Speaker 13>endanger of the people. New York Mayor Zoron Mamdani and

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<v Speaker 13>Governor Cathy Hochel unveiled the first neighborhoods to get free

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<v Speaker 13>daycare for two year olds under the two Care program

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<v Speaker 13>I'm starting this fall. The first four communities that will

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<v Speaker 13>receive two thousand two K seats include Washington Heights and

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<v Speaker 13>the Rockaways. Mayor mem Donnie also responded to a local

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<v Speaker 13>New York City radio host reference to him as a

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<v Speaker 13>radical islam cockroach.

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<v Speaker 9>I am not ashamed of who I am. I am

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<v Speaker 9>not ashamed of my faith. I am not ashamed of

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<v Speaker 9>being the first Muslim mayor in the history of our city.

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<v Speaker 9>And there's no amount of racism that will change the

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<v Speaker 9>way in which I lead or the commitment that I

0:12:30.920 --> 0:12:33.120
<v Speaker 9>hold to each and every New Yorker in the city.

0:12:33.360 --> 0:12:36.199
<v Speaker 13>Senator Chuck Schumer of New York condemned the radio host

0:12:36.240 --> 0:12:39.160
<v Speaker 13>comments and a social media post. Schumer says, it's a

0:12:39.200 --> 0:12:43.760
<v Speaker 13>disgusting display of bigotry and Islamophobia. Global news twenty four

0:12:43.800 --> 0:12:46.240
<v Speaker 13>hours a day and whenever you want it with Bloomberg

0:12:46.280 --> 0:12:49.160
<v Speaker 13>News Now now Michael Barr and this is Bloomberg, Karen.

0:12:49.520 --> 0:12:50.160
<v Speaker 5>Thanks Michael.

0:12:50.360 --> 0:12:53.120
<v Speaker 2>Time now for our Bloomberg Sports update, and for that

0:12:53.280 --> 0:12:54.800
<v Speaker 2>we bring in John stash Hour.

0:12:55.080 --> 0:12:57.400
<v Speaker 14>Thanks Darren for teams rankd the town to one in

0:12:57.440 --> 0:13:01.520
<v Speaker 14>college basketball, all lost number nine Nebraska by twenty to UCLA,

0:13:01.600 --> 0:13:05.640
<v Speaker 14>tenth thrank Texas Tech beaten by TCU, Number fourteen. Kansas

0:13:05.679 --> 0:13:09.840
<v Speaker 14>fell to Arizona State in sixteenth ranked Alabama beaten by Georgia.

0:13:09.960 --> 0:13:13.040
<v Speaker 14>Team USA with an exhibition game against the San Francisco

0:13:13.080 --> 0:13:16.160
<v Speaker 14>Giants getting ready for the World Baseball Classic, USA won

0:13:16.280 --> 0:13:20.720
<v Speaker 14>it fifteen to one. Atlanta Brey's outfielder jerksenprof Profar, who

0:13:20.920 --> 0:13:23.320
<v Speaker 14>served an eighty game suspension last year, will now serve

0:13:23.360 --> 0:13:26.800
<v Speaker 14>a one hundred and sixty two game suspension for PD violation.

0:13:26.880 --> 0:13:28.120
<v Speaker 14>That's a Bloomberg Sports update.

0:13:29.600 --> 0:13:30.360
<v Speaker 5>Stay with us.

0:13:30.480 --> 0:13:33.400
<v Speaker 2>More from Bloomberg day Break coming up after.

0:13:33.080 --> 0:13:41.720
<v Speaker 1>This Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

0:13:41.800 --> 0:13:44.640
<v Speaker 1>and around the world on Bloomberg dot Com and the

0:13:44.679 --> 0:13:47.720
<v Speaker 1>Bloomberg Business album. This is Bloomberg Daybreak.

0:13:47.840 --> 0:13:49.079
<v Speaker 5>Good morning, I'm Nathan Hager.

0:13:49.120 --> 0:13:51.440
<v Speaker 3>With the war with Iran now into a fifth day,

0:13:51.480 --> 0:13:54.120
<v Speaker 3>Fighting continues to spread across the Middle East with little

0:13:54.160 --> 0:13:56.680
<v Speaker 3>sign of Led up. President Trump is promising the US

0:13:56.720 --> 0:13:59.320
<v Speaker 3>will insure a safe passage of oil through the Gulf.

0:13:59.520 --> 0:14:02.440
<v Speaker 3>As second Terry of State Marco Rubio continues to defend

0:14:02.480 --> 0:14:05.480
<v Speaker 3>the president's decision to attack. The bottom line is this

0:14:06.160 --> 0:14:08.160
<v Speaker 3>the President's determined we were not going to get hit first.

0:14:08.160 --> 0:14:10.040
<v Speaker 5>It's that simple, guys. We are not going to put

0:14:10.080 --> 0:14:11.400
<v Speaker 5>American's troops in harmsway.

0:14:11.640 --> 0:14:14.440
<v Speaker 3>Secretary of State Marco Rubio in Washington. We're joined now

0:14:14.440 --> 0:14:17.920
<v Speaker 3>by Bloomberg's Middle East Breaking News editor Patrick Sykes. And Patrick,

0:14:18.000 --> 0:14:19.600
<v Speaker 3>if you could just catch us up on some of

0:14:19.600 --> 0:14:21.840
<v Speaker 3>the latest headlines that have been coming out of the

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<v Speaker 3>Middle East.

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<v Speaker 5>Good morning morning.

0:14:23.800 --> 0:14:23.960
<v Speaker 14>Yeah.

0:14:23.960 --> 0:14:25.680
<v Speaker 15>We saw just a few minutes ago in New York

0:14:25.720 --> 0:14:29.360
<v Speaker 15>Times reporting that Iran's intelligence ministry had reached out indirectly

0:14:29.400 --> 0:14:32.800
<v Speaker 15>to the CIA to talk about potential terms for ending

0:14:32.840 --> 0:14:37.640
<v Speaker 15>the war that would be really de escalatory, if it's true.

0:14:38.880 --> 0:14:41.680
<v Speaker 15>A slightly surprising place for an offer like that to

0:14:41.760 --> 0:14:45.280
<v Speaker 15>come from. Obviously, it's been the Foreign Ministry and Iran

0:14:45.360 --> 0:14:49.200
<v Speaker 15>diplomats that have been involved in most of the oureas

0:14:49.320 --> 0:14:53.560
<v Speaker 15>so far, and this Temporary Leadership Council as well. Other

0:14:53.640 --> 0:14:55.520
<v Speaker 15>than that, I think the main thing is this strike

0:14:55.560 --> 0:14:58.840
<v Speaker 15>we had a few minutes ago on the Saudi oil refinery.

0:14:59.320 --> 0:15:02.480
<v Speaker 15>Just under line that the risks are still very high

0:15:02.560 --> 0:15:05.360
<v Speaker 15>for energy assets in the region, and the Golf country's

0:15:05.400 --> 0:15:08.440
<v Speaker 15>still very much been pulled into the conflict.

0:15:09.520 --> 0:15:15.080
<v Speaker 3>With this report of the attack on or the planned

0:15:15.120 --> 0:15:18.600
<v Speaker 3>attack at least on Saudi Arabia's oil refinery. That puts

0:15:18.640 --> 0:15:23.120
<v Speaker 3>more attention, doesn't it. On President Trump's promises assurances that

0:15:23.160 --> 0:15:26.360
<v Speaker 3>the US would be able to provide a safe passage

0:15:26.400 --> 0:15:29.440
<v Speaker 3>of oil through the Golf through an insurance program.

0:15:29.480 --> 0:15:30.800
<v Speaker 5>How would that work exactly?

0:15:31.480 --> 0:15:33.520
<v Speaker 15>I think that's a big question for many still in

0:15:33.520 --> 0:15:36.440
<v Speaker 15>the industry. In theory, it sounds great, right, we'll handle

0:15:36.440 --> 0:15:39.760
<v Speaker 15>the insurance, which is exactly what's gone up in price

0:15:39.840 --> 0:15:44.120
<v Speaker 15>because of these events, and we'll escort you militarily with

0:15:44.280 --> 0:15:47.960
<v Speaker 15>un naval assets in the region. I think the practicalities

0:15:48.080 --> 0:15:51.920
<v Speaker 15>around the insurance are still very much to be clarified.

0:15:52.000 --> 0:15:55.360
<v Speaker 15>And on the escort side, you know, that might provide

0:15:55.360 --> 0:15:57.520
<v Speaker 15>some peace of mind. I think for many even that

0:15:57.600 --> 0:16:00.440
<v Speaker 15>wouldn't be enough. And the other thing is that you're

0:16:00.480 --> 0:16:04.280
<v Speaker 15>still looking at a serious drop in volume of transits

0:16:04.440 --> 0:16:06.720
<v Speaker 15>if that's happening, because you know they're only going to

0:16:06.760 --> 0:16:11.080
<v Speaker 15>be able to do those controlled naval transits at a

0:16:11.200 --> 0:16:14.080
<v Speaker 15>very steady pace with all the kind of precautions that

0:16:14.160 --> 0:16:16.600
<v Speaker 15>they involved, So it's still not going to be anything

0:16:16.720 --> 0:16:17.920
<v Speaker 15>like a return to normal.

0:16:18.720 --> 0:16:21.400
<v Speaker 3>You mentioned the headline from the New York Times about

0:16:21.440 --> 0:16:26.360
<v Speaker 3>apparent outreach from Iran's spy agencies looking for a possible

0:16:26.600 --> 0:16:29.119
<v Speaker 3>off ramp for this war within the first.

0:16:28.920 --> 0:16:29.600
<v Speaker 5>Day or so.

0:16:30.000 --> 0:16:33.160
<v Speaker 3>Who would be providing that off ramp given that Israel

0:16:33.280 --> 0:16:39.320
<v Speaker 3>has been targeting the very room where experts are trying

0:16:39.360 --> 0:16:41.720
<v Speaker 3>to name a new supreme leader.

0:16:42.440 --> 0:16:45.320
<v Speaker 15>Indeed, and I think the intelligence ministry itself has also

0:16:45.400 --> 0:16:48.880
<v Speaker 15>been targeted. I mean, I think at a time like this,

0:16:49.400 --> 0:16:52.840
<v Speaker 15>when the US is ready, strategy has kind of been

0:16:52.840 --> 0:16:56.920
<v Speaker 15>to try and split up the Iranian state and break

0:16:56.960 --> 0:17:00.960
<v Speaker 15>down those chains of command. It does remain to be

0:17:01.000 --> 0:17:04.439
<v Speaker 15>seen kind of how authoritative any offer like that would be.

0:17:04.720 --> 0:17:08.840
<v Speaker 15>They're obviously hoping, we assume, for a kind of pliant

0:17:09.880 --> 0:17:14.359
<v Speaker 15>constituency within Iran that would be willing to make a deal,

0:17:14.640 --> 0:17:17.720
<v Speaker 15>end the war and resolve all of those contentious issues

0:17:17.720 --> 0:17:20.959
<v Speaker 15>from nuclear to missiles that have brought us to this point.

0:17:21.359 --> 0:17:23.760
<v Speaker 15>But as we've seen from the rhetoric and obviously the

0:17:24.000 --> 0:17:27.000
<v Speaker 15>missiles that are still flying. There's still plenty of officials

0:17:27.000 --> 0:17:30.480
<v Speaker 15>in Iran that clearly think they can win this war.

0:17:30.520 --> 0:17:33.800
<v Speaker 15>They can at least last out the US will to

0:17:33.920 --> 0:17:37.080
<v Speaker 15>continue it, and for them it's an existential moment.

0:17:37.720 --> 0:17:41.080
<v Speaker 3>Thank you for this once again, Patrick, appreciate the update

0:17:41.119 --> 0:17:44.639
<v Speaker 3>that is Patrick Syke's Middle East breaking news editor for

0:17:44.680 --> 0:17:48.080
<v Speaker 3>Bloomberg News with us this morning from Istanbul. Want to

0:17:48.119 --> 0:17:51.720
<v Speaker 3>turn now to domestic politics because we've had the kickoff

0:17:51.800 --> 0:17:55.720
<v Speaker 3>of midterm election season with key primary races in Texas,

0:17:55.800 --> 0:17:59.040
<v Speaker 3>North Carolina, Arkansas as well. One of the big ones

0:17:59.119 --> 0:18:03.080
<v Speaker 3>for four terms, Republican Senator John Cornyn is headed to

0:18:03.119 --> 0:18:06.200
<v Speaker 3>a runoff with State Attorney General Ken Paxton.

0:18:06.200 --> 0:18:06.520
<v Speaker 5>For more.

0:18:06.600 --> 0:18:10.280
<v Speaker 3>Let's bring in Bloomberg News Editor at Large Marty Schanker

0:18:10.320 --> 0:18:12.240
<v Speaker 3>and Marty, I think we knew this was going to

0:18:12.240 --> 0:18:15.800
<v Speaker 3>be a hotly contested race. What does this result tell

0:18:15.880 --> 0:18:18.320
<v Speaker 3>us about what we can expect in November?

0:18:18.400 --> 0:18:18.959
<v Speaker 5>Good morning.

0:18:20.119 --> 0:18:22.720
<v Speaker 16>I don't know what you can say about November, but

0:18:22.920 --> 0:18:25.440
<v Speaker 16>what we can say is that it's going to be

0:18:25.640 --> 0:18:30.680
<v Speaker 16>one of the more expensive Senate runoffs in history. That

0:18:31.280 --> 0:18:37.080
<v Speaker 16>John Cornyan already spent seventy million dollars to fend off

0:18:37.600 --> 0:18:43.120
<v Speaker 16>Ken Paxton, and he just eked out a very narrow win,

0:18:43.840 --> 0:18:47.480
<v Speaker 16>but still faces a runoff eighty days from now, and

0:18:48.160 --> 0:18:55.479
<v Speaker 16>it's likely to be acrimonious and of national importance.

0:18:55.400 --> 0:18:56.840
<v Speaker 5>As it already has been.

0:18:57.440 --> 0:19:01.400
<v Speaker 3>Did the other candidate in this race, the other main candidate,

0:19:01.480 --> 0:19:04.520
<v Speaker 3>Wesley Hunt, plays spoiler here or does this point to

0:19:04.920 --> 0:19:07.040
<v Speaker 3>a bigger vulnerability for the incumbent?

0:19:08.280 --> 0:19:14.280
<v Speaker 16>Well, he definitely drew over twelve percent of the vote,

0:19:14.359 --> 0:19:17.800
<v Speaker 16>which prevented either one of the other two candidates from

0:19:17.840 --> 0:19:21.640
<v Speaker 16>getting the fifty percent needed to get the nomination itself,

0:19:21.720 --> 0:19:24.160
<v Speaker 16>So he did play spoiler, but he won't be there

0:19:24.240 --> 0:19:28.440
<v Speaker 16>for the runoff in May, so it'll be a Paxton

0:19:28.640 --> 0:19:32.240
<v Speaker 16>Cornyn race and it's likely to be extremely nasty.

0:19:32.640 --> 0:19:35.800
<v Speaker 3>And whoever does come out of that race is going

0:19:35.840 --> 0:19:41.680
<v Speaker 3>to face James Taalrico, a upstart on the Democratic side

0:19:42.240 --> 0:19:45.600
<v Speaker 3>fending off Jasmine Crockett. That kind of ended a bit

0:19:45.640 --> 0:19:47.159
<v Speaker 3>acrimoniously as well, didn't it.

0:19:48.200 --> 0:19:51.760
<v Speaker 16>Yeah, although not nearly as much as the Republicans. And

0:19:51.840 --> 0:19:55.360
<v Speaker 16>don't forget that Donald Trump did not endorse the candidate

0:19:55.400 --> 0:19:59.000
<v Speaker 16>on the Republican side. On the Democratic side, there were

0:19:59.480 --> 0:20:03.639
<v Speaker 16>voting difficulties because they changed the rules at the last minute,

0:20:04.119 --> 0:20:07.640
<v Speaker 16>and it was many Democratic voters were turned away from

0:20:07.640 --> 0:20:09.240
<v Speaker 16>the polling booths.

0:20:09.280 --> 0:20:14.920
<v Speaker 17>And it'll be interested to see whether Jasmine Crockett makes

0:20:14.960 --> 0:20:18.040
<v Speaker 17>that an issue or whether she just for the sake

0:20:18.080 --> 0:20:23.200
<v Speaker 17>of unity, endorses tell Rico and the Democrats can move

0:20:23.280 --> 0:20:26.399
<v Speaker 17>on against a race against what they hope is a

0:20:26.520 --> 0:20:28.120
<v Speaker 17>weaker Ken Paxton.

0:20:28.760 --> 0:20:32.199
<v Speaker 3>Does this point to an issue that could crop up

0:20:32.240 --> 0:20:33.600
<v Speaker 3>again in November?

0:20:33.680 --> 0:20:35.160
<v Speaker 5>This rule change.

0:20:36.160 --> 0:20:41.440
<v Speaker 16>Absolutely could, and it's not just in Texas. The redistinct

0:20:41.720 --> 0:20:45.960
<v Speaker 16>redistricting efforts in a variety of states could cause some

0:20:46.080 --> 0:20:49.280
<v Speaker 16>confusion at the polling place. But at the same time,

0:20:50.240 --> 0:20:55.000
<v Speaker 16>the turnout in Texas and in South Carolina was extremely

0:20:55.119 --> 0:20:59.960
<v Speaker 16>encouraging for Democrats. There was huge lines, voters seemed very motive,

0:21:00.359 --> 0:21:03.280
<v Speaker 16>and that's probably a positive sign for the Democrats.

0:21:05.080 --> 0:21:08.520
<v Speaker 2>This is Bloomberg Daybreak, your morning podcast on the stories

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<v Speaker 5>And I'm Nathan Hager.

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<v Speaker 3>Join us again tomorrow morning for all the news you

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<v Speaker 3>Bray