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.
Speaker 4: The war in the Middle East is now into a
Speaker 4: sixth day. Israel is carrying out new waves of attacks
Speaker 4: on Tehran's military and intelligence assets, along with strikes on
Speaker 4: Hesbola targets in Lebanon. President Trump says the US is
Speaker 4: doing very well.
Speaker 5: Somebody said, on a scale of ten, where would you're ready,
Speaker 5: I said about a fifteen. And We're going to continue
Speaker 5: to do what we have the greatest military in the
Speaker 5: world by far.
Speaker 4: President Trump spoke from the White House, so we get
Speaker 4: more from Bloomberg Middle East anchor Jumana Bursecci in Dubai.
Speaker 6: White House Press Sector. You, Karen, I love it. Went
Speaker 6: on to say that they're moving to have complete dominance
Speaker 6: of the skies, and earlier on I actually conducted an
Speaker 6: interview with one of the advisors to the Israeli Prime
Speaker 6: Minister and he said that from their perspective, both IS
Speaker 6: and US operations have already surpassed in the first five
Speaker 6: days of this war what they thought they could achieve.
Speaker 6: This is his words. Obviously, that's how he's describing it.
Speaker 6: The US also saying the Central Command that they've hit
Speaker 6: over two thousand targets in Iran over the first five
Speaker 6: days of the operations.
Speaker 4: Bloomberg's Jumani Burssecci reports Iran is promising to ramp up
Speaker 4: retaliatory attacks. About a dozen nations are involved with Tehran's
Speaker 4: striking US bases and embassies across the Middle East. Turkey
Speaker 4: came under fire as well yesterday, the first time a
Speaker 4: NATO members been targeted, and the US submarine sank in
Speaker 4: Iranian warship and international waters off Sri Lanka in the
Speaker 4: first such attacks since World War II. Iran is vowing
Speaker 4: to avenge that strike well.
Speaker 2: On Capitol Hill, Nathan the Shunate has cleared the way
Speaker 2: for President Trump to keep the war going. A Democratic
Speaker 2: led resolution to stop for their strike so was blocked
Speaker 2: by a vote of forty seven to fifty three. Republican
Speaker 2: Lindsay Graham says the war is justified.
Speaker 7: President Trump, after a sincere effort and to bring this
Speaker 7: conflict to a peaceful conclusion, concluded that to continue to
Speaker 7: allow this regime to move forward would put America at
Speaker 7: unacceptable risk, and he was right.
Speaker 2: But Democrat Chris Murphy says Americans are already paying a cost.
Speaker 8: Oil prices up by nine percent, gasoline prices their largest
Speaker 8: one day increase in twenty years, natural gas prices up
Speaker 8: forty five percent. The region is in chaos. American consumers
Speaker 8: are paying the price, and for what. We still don't
Speaker 8: even know the reason for this war.
Speaker 2: Senators Chris Murphy and Lindsey Graham spoke on the Senate
Speaker 2: Flora ahead of the vote. The House plans to vote
Speaker 2: in a war powers resolution today. Speaker Mike Johnson says
Speaker 2: he's confident it will fail there as well. A CNN
Speaker 2: pool taken the weekend the war began found fifty nine
Speaker 2: percent of Americans disapprove the strikes on Iran.
Speaker 4: The Karen Former Secretary of State Antony Blank says real
Speaker 4: change in Iran will require a sustained military focus that
Speaker 4: could wear down US weapons stockpiles and leave it vulnerable
Speaker 4: to attacks from other adversaries. Lincoln was the top diplomat
Speaker 4: in the Joe Biden administration. He's questioning whether this White
Speaker 4: House is ready for the consequences of a drawn out war.
Speaker 4: B Lincoln spoke with Bloomberg's David Gurup on the latest
Speaker 4: edition of the Bloomberg Big Take podcast.
Speaker 9: What I'm worried about. One of the things I'm worried about,
Speaker 9: and this gets to the second and third order consequences,
Speaker 9: is we so deplete our arsenal and it takes a
Speaker 9: long time to rebuild it that that puts us in
Speaker 9: a disadvantageous position when it comes to say a China
Speaker 9: or a Russia. All of those things need to be
Speaker 9: factored in. And again it's one of the reasons why
Speaker 9: if you're going to undertake something like this, you've got
Speaker 9: to make sure that you've you've factored all of that in.
Speaker 4: And you can catch David Gurrow's full conversation with former
Speaker 4: Secretary of State Blincoln on The Big Take wherever you
Speaker 4: get your podcasts.
Speaker 2: Well, Nathan, we are seeing oil on the rise once
Speaker 2: again this morning. West Texas Intermediate is up two point
Speaker 2: two percent at seventy six dollars twenty four sense of
Speaker 2: Baryl Brent is up one point seven percent eighty two
Speaker 2: dollars seventy six cents. Bloomberg Middle East News director Will
Speaker 2: Kennedy believes President Trump is closely monitoring the energy market.
Speaker 10: I do think the old price is an important calculation
Speaker 10: for him, and although the price has been significant, it's
Speaker 10: worth bearing in mind that it's not out of control.
Speaker 10: That price is in the low eighties and not in
Speaker 10: beyond where they've been in recent years. Prices went well
Speaker 10: above one hundred dollars at the start of the Russia
Speaker 10: Ukraine War, so it may be in Washington's calculation that
Speaker 10: these oil prices are manageable.
Speaker 2: Bloomberg's Will Kennedy on Iranian television this morning, a military
Speaker 2: official claimed Iran has not closed the Strait of Hormuz now.
Speaker 4: The war continues to have a major impact on the
Speaker 4: airline industry car and the number of canceled flights to
Speaker 4: Middle East tubs has now surpassed twenty three thousand and
Speaker 4: thousands of passengers are stranded in the Gulf region, with
Speaker 4: more than half of all scheduled flights to or from
Speaker 4: the Middle East canceled. We get the latest from Bloomberg
Speaker 4: Aviation and Transport reporter Danny Lee.
Speaker 11: Priority has really been given to people to get out
Speaker 11: of the region, and we have seen recent days the
Speaker 11: lucks of Emerson and Etty had elands starting receiving some
Speaker 11: flights to get people out, but clearly for now as
Speaker 11: a pretty broad disruption overall.
Speaker 4: It's Bloomberg's Danny Lee and the State Department says seventeen
Speaker 4: five hundred Americans have safely fled the region. It's urging
Speaker 4: others to register via its website, Nathan.
Speaker 2: Amazon also being impacted by the war in the Middle East.
Speaker 2: Your own strikes have damaged three facilities operated by Amazon
Speaker 2: in the United Arab Amoris and Bahrain, and Israel and
Speaker 2: the US have reportedly hit at least two data centers
Speaker 2: in Tehran, one of them connected to the Islamic Revolutionary
Speaker 2: Guard Corps.
Speaker 4: Karen Goldman Sachs CEO David Solomon says he's surprised so
Speaker 4: far by the reaction to the Iran attacks in the markets,
Speaker 4: but in an interview with Bloomberg, he says he does
Speaker 4: not see complacency.
Speaker 12: I think there's a lot, a lot of uncertainty around
Speaker 12: the direction of the conflict, how it will be resolved.
Speaker 12: You know what the off ramps are, and you know,
Speaker 12: I think it's fair to say when you look at markets,
Speaker 12: market reactions have been relatively benign, and I certainly could
Speaker 12: have seen over the last couple of days you know
Speaker 12: a little bit more volatility, but I don't think people
Speaker 12: are being complacent. I think that market participants are looking
Speaker 12: and trying to say, you know, how is this going
Speaker 12: to play out? What's the end game?
Speaker 4: To catch the full interview with Goldman Sachs CEO David
Speaker 4: Solomon on Bloomberg's new video experience on the Bloomberg Business
Speaker 4: app Nathan Fed.
Speaker 2: Governor Stephen Myron is still pushing for interest rate because
Speaker 2: even with the war in Iran, and we spoke with
Speaker 2: Myrain yesterday, I think.
Speaker 13: It's a moment to continue acting. We have I have policy,
Speaker 13: I have projections for unemployment. I have projections for labor markets,
Speaker 13: so to my for inflation, so to my colleagues, and
Speaker 13: I believe it's appropriate to continue acting in accordance with
Speaker 13: those projections until you get evidence that you have to
Speaker 13: change your projections. And thus far, the evidence from event
Speaker 13: from events over the week and haven't led me to
Speaker 13: change any of my forecast for the lad market for
Speaker 13: inflation over the medium terms. So it's too early to
Speaker 13: respond to them.
Speaker 2: Thank Governor Stephen Myron says it's too soon to say
Speaker 2: how the war will affect the US economy and other
Speaker 2: FED officials have said the risk of higher oil prices
Speaker 2: is clouding their outlook.
Speaker 4: Turning to the equity markets, Karen futures have turned a
Speaker 4: touch lower this morning, following yesterday's gains on Wall Street.
Speaker 4: Shares of Broadcommerce still in the green, up seven percent
Speaker 4: in early trading. The company expects Ai Chip sales to
Speaker 4: top one hundred billion dollars next year. Broadcom also delivered
Speaker 4: a better than estimated quarterly outlook and announced a stock
Speaker 4: buyback plan worth as much as ten billion dollars.
Speaker 2: Well in Asia, Nathan China has set as low as
Speaker 2: growth target since nineteen ninety one, as policymakers finally appear
Speaker 2: to acknowledge the difficulties facing the economy, including deflation, teriff fishs,
Speaker 2: and the property sector. And here's Chinese Premier Lee Chiang
Speaker 2: speaking through an interpreter in Beijing earlier this morning.
Speaker 14: I mean targets forty women this year are US follows
Speaker 14: GDP growth four point five to five percent. We striving
Speaker 14: were better in practice and.
Speaker 2: As hun is Premier Lee Chiang. Hanging over any projection
Speaker 2: is a summit between Leader Seson Ping and President Trump,
Speaker 2: which could determine the level of tariffs charged on Chinese goods.
Speaker 4: And this programming note, Karen, as we've just seen this
Speaker 4: past weekend markets to way clothes on Friday, but the
Speaker 4: world doesn't. That's why we're bringing you a new live
Speaker 4: radio and TV show, Bloomberg This Weekend, is looking beyond
Speaker 4: the daily headlines to the bigger themes striving politics, business
Speaker 4: and culture. Join David Gera, Christina Raffini, and Lisa Matteo
Speaker 4: for smart conversations and in depth interviews that help make
Speaker 4: sense of the week that's been and what comes next.
Speaker 4: Get Bloomberg This Weekend live Saturdays and Sundays from seven
Speaker 4: am Eastern on Bloomberg Radio, Bloomberg Television, and the Bloomberg
Speaker 4: Business App.
Speaker 2: Time now for a look at some of the other
Speaker 2: stories making news in New York and around the world.
Speaker 2: And for that we're joined by Blomberg's Michael Barr Michael,
Speaker 2: Good Morning.
Speaker 15: Good Morning, Karen. The House Overside Committee as voted to
Speaker 15: subpoena Attorney General Pam Bondy as part of its investigation
Speaker 15: into convicted sex offender Jeffrey Epstein. Commerce Secretary Howard Lutnik
Speaker 15: has also agreed to answer questions about his past ties
Speaker 15: to Epstein, including emails showing a visit to Epstein's private
Speaker 15: island years after Lutnik says he cut off contact. Democratic
Speaker 15: Congressman Stephen Lynch of Massachusetts is a senior member of
Speaker 15: the committee.
Speaker 16: With Pam Bondy, it's a different situation. She has withheld
Speaker 16: meaningful and important documents from Congress. She scrubbed the information
Speaker 16: that she gave to Congress from all references to Donald Trump.
Speaker 15: Lynch says that Trump administration had six million documents, they
Speaker 15: gave us three million. Minnesota Governor Tim Walls and State
Speaker 15: Attorney General Keith Ellison appeared before the House Oversight Committee
Speaker 15: to testify about alleged fraud in state programs. The committee
Speaker 15: accused Walls and Ellison of knowing about alleged fraud for
Speaker 15: years and failing to act on it. Committee chair James
Speaker 15: Comer accused the leaders of ignoring warnings from more than
Speaker 15: thirty whistleblowers.
Speaker 17: What we've uncovered in Minnesota is not a paperwork error
Speaker 17: or a few bad actors slipping through the cracks. It
Speaker 17: is sustained failure of leadership.
Speaker 15: Walls defended their leadership, saying the allegations are being used
Speaker 15: as rationale for President Trump's deadly immigration raids in the state.
Speaker 9: In Minnesota, if you do fraud public programs, if you
Speaker 9: steal taxpayer money, we'll find you, We'll prosecute you, we'll
Speaker 9: convict you, and we'll throw you in jail.
Speaker 15: Ellison says Operation Metro Surge did nothing to address fraud
Speaker 15: in our state, harmed our economy and scarred our people.
Speaker 15: US and Canadian military aircraft were sent to the Skies
Speaker 15: in response to an ultimately unfounded security threat on a
Speaker 15: Scandinavian Airlines flight bound for Newark Airport. The plane landed safely.
Speaker 15: Global News twenty four hours a day and whenever you
Speaker 15: want it with Bloomberg News Now Michael Barr, and this
Speaker 15: is Bloomberg Hererac. Thanks Michael.
Speaker 2: A time now for our Bloomberg Sports update, and for
Speaker 2: that you bring in John Stash Houurd.
Speaker 3: And Karen Lou Holtzer passed away at the age of
Speaker 3: eighty nine. A member of the College Football Hall of Fame,
Speaker 3: he took over at Notre Dame of the mid nineteen eighty.
Speaker 3: In his third season, he coached the Irish to the
Speaker 3: national championship. The Patriots have released wide receiver Stefon Diggs
Speaker 3: after just one season with them. He played well, but
Speaker 3: this saves them sixteen million of the salary cap Diggs,
Speaker 3: who comes a free agent. Ken See Chiefs have traded
Speaker 3: cornerback Trent mcduffy to the La Rams. That Chiefs get
Speaker 3: the Rams first round pick and three other picks. That's
Speaker 3: your Bloomberg Sports Update.
Speaker 2: Stay with us. More from Bloomberg day Break coming up
Speaker 2: after this.
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Serious Exam
Speaker 1: and around the world on Bloomberg Dot and the Bloomberg
Speaker 1: Business app. This is Bloomberg Daybreak.
Speaker 4: Good morning on Nathan Hager. On day six of the
Speaker 4: US Israeli war with Iran, there is little sign of
Speaker 4: let up on either side, and President Trump continues to
Speaker 4: make the case that he was justified in going after Tehran.
Speaker 5: They're attacking their neighbors. They're attacking there in some cases
Speaker 5: allies or that's so long ago allies, And you know,
Speaker 5: it's really a nation that was out of control.
Speaker 4: It was President Trump at the White House. We're joined
Speaker 4: now by Bloomberg News Middle East Breaking News editor Patrick Sikes. Patrick,
Speaker 4: thanks for coming back on with us. If you could
Speaker 4: get us updated on the latest that's been happening in
Speaker 4: the region. Good morning morning.
Speaker 18: Yeah, I think pertinent said Trump comments there, just you know,
Speaker 18: since yesterday we've seen the first incidents both on Turkish soil,
Speaker 18: with a ballistic projectile intercepted of Turkey yesterday and then today,
Speaker 18: just a short while ago, the first incident in Azerbaijan
Speaker 18: with Derne being a drone falling on Osari territory. So
Speaker 18: I think, yeah, again, in just indicating even if perhaps
Speaker 18: the overall volume of the volleys of missiles being fired
Speaker 18: might be falling from Iran, we're still seeing the conflict
Speaker 18: sprawl out in terms of geography.
Speaker 4: And we also saw yesterday the first strike by an
Speaker 4: US submarine on a surface vessel since World War Two
Speaker 4: off India's backyard. What does that tell us about the
Speaker 4: potential scope of this conflict?
Speaker 18: Patrick, Yeah, absolutely, I mean I think it just shows
Speaker 18: that the US is prepared to go far far away
Speaker 18: from Iranian shores Iranian territory in pursuit of these objectives
Speaker 18: that it's laid out. I think the maritime aspect of
Speaker 18: it is also important, because Iran was saying just earlier
Speaker 18: today that it will make America regret that particular attack
Speaker 18: that incident, and I think that matters because of all
Speaker 18: the munitions that Aaron will have around the Persian Gulf
Speaker 18: and all the tensions around shipping there the moment. I
Speaker 18: think it's going to give Iran an extra incentive to
Speaker 18: try and target shipping, perhaps even military shipping in the region.
Speaker 4: As the conflict continues. Patrick, you'd seen some headlines across
Speaker 4: the Bloomberg terminal of Iran saying it had offered some
Speaker 4: deal terms before the conflict began. Tell us more about
Speaker 4: that and what to make of it.
Speaker 18: Yeah, that paniced the market a bit because it was
Speaker 18: sort of recirculated the comments. They were actually made kind
Speaker 18: of overnight a few hours ago by a deputy foreign
Speaker 18: minister in Iran, but it shows just how on edge
Speaker 18: the market is that they were reacting. The idea was
Speaker 18: that Iran was willing to give up not its nuclear program,
Speaker 18: as some had reported, but the highly enriched stockpile of
Speaker 18: uranium that it's built up if it was able to
Speaker 18: get something attractive in exchange. I think substantively that wasn't
Speaker 18: really new to us. But I think, as I said,
Speaker 18: you know, the market reaction just shows how eager people
Speaker 18: are for new information and the level of and to
Speaker 18: the patient that's out there.
Speaker 4: I imagine it resurfaces the question of the ultimate end
Speaker 4: goal for the US end Israel. If that kind of
Speaker 4: offer of giving up to just enriched geranium wasn't enough,
Speaker 4: what could the potential end goal be for the US
Speaker 4: at Israel at this point?
Speaker 18: Yeah, I think part of the problem is that those goals,
Speaker 18: you know, frequently though we see them being laid out,
Speaker 18: they tend to vary right day to day, week to week.
Speaker 18: Sometimes it's about a nuclear bomb, which of course Iran
Speaker 18: says it doesn't have anyway. Sometimes it's about missiles, other
Speaker 18: times it's about threats to the region. The current line
Speaker 18: that you know, I think was the US saying they
Speaker 18: want to remove Iran's ability to project threats is obviously
Speaker 18: a little bit more ambiguous than some of the above,
Speaker 18: which again I think this leaves a lot more room
Speaker 18: for the conflict a spiral and in turn for Iran
Speaker 18: to keep ramping up from its side.
Speaker 4: In our last thirty seconds, with airline cancelations piling up,
Speaker 4: how are Western and citizens getting out at this point?
Speaker 18: Yeah, there's still a lot of panic and confusion, I think,
Speaker 18: with some mixed guidance from some of the countries in
Speaker 18: the West, but still many many people stuck in the Gulf,
Speaker 18: coming through the golf or further afield stuck, and I
Speaker 18: think some countries have been trying to send aid. Individual
Speaker 18: companies will likely be looking at potential evacuation options, but
Speaker 18: it's still all, i'd say, rather unclear for the moment.
Speaker 2: This is Bloomberg Daybreak, your morning podcast and the stories
Speaker 2: making news from Wall Street to Washington and beyond.
Speaker 4: Look for us on your podcast feed by six am
Speaker 4: Eastern each morning, on Apple, Spotify, or anywhere else you listen.
Speaker 2: You can also listen live each morning starting at five
Speaker 2: am Wall Street time on Bloomberg eleven three to zero
Speaker 2: in New York, Bloomberg in ninety nine to one in Washington,
Speaker 2: Bloomberg ninety two nine in Boston, and nationwide on serious
Speaker 2: XM Channel one twenty one.
Speaker 4: Plus listen coast to coast on the bloom Business app
Speaker 4: now with Apple CarPlay and Android Atto interfaces.
Speaker 2: And don't forget to subscribe to Bloomberg News Now. It's
Speaker 2: the latest news whenever you want it in five minutes
Speaker 2: or less. Search Bloomberg News Now on your favorite podcast
Speaker 2: platform to stay informed all day long. I'm Karen Moscow.
Speaker 4: And I'm Nathan Hager. Join us again tomorrow morning for
Speaker 4: all the news you need to start your day right
Speaker 4: here on Bloomberg.
Speaker 15: Dabray