1 00:00:02,520 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,960 --> 00:00:13,160 Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 3 00:00:13,160 --> 00:00:14,920 Speaker 2: are the stories we're following today. 4 00:00:15,640 --> 00:00:18,640 Speaker 3: Karen, it is risk off across markets, with a third 5 00:00:18,720 --> 00:00:22,079 Speaker 3: day of attacks underway across the Middle East. Blasts have 6 00:00:22,079 --> 00:00:25,480 Speaker 3: been heard this morning in Bahrain, Kuwait, the United Arab Emirates, 7 00:00:25,480 --> 00:00:29,080 Speaker 3: and Qatar. As Iran targets US interests in the region. 8 00:00:29,440 --> 00:00:33,000 Speaker 3: President Trump says the bombing campaign against Iran could last 9 00:00:33,080 --> 00:00:36,640 Speaker 3: for weeks. He's calling on the Islamic Republic's remaining leaders 10 00:00:36,800 --> 00:00:37,440 Speaker 3: to give up. 11 00:00:38,320 --> 00:00:43,000 Speaker 4: I once again urged the Revolutionary Guard, the Iranian military 12 00:00:43,360 --> 00:00:47,360 Speaker 4: police to lay down your arms and receive full immunity 13 00:00:47,440 --> 00:00:48,560 Speaker 4: or face certain death. 14 00:00:49,159 --> 00:00:51,879 Speaker 5: It will be certain death won't be. 15 00:00:51,880 --> 00:00:55,320 Speaker 3: Pretty, President Trump spoke in a new social media post 16 00:00:55,440 --> 00:00:58,280 Speaker 3: late yesterday. The President told The New York Times he's 17 00:00:58,320 --> 00:01:01,400 Speaker 3: willing to drop sanctions on Iran if its new leader 18 00:01:01,480 --> 00:01:04,280 Speaker 3: is pragmatic, but in an interview with ABC News, he 19 00:01:04,360 --> 00:01:07,839 Speaker 3: said his favored choices after the death of Iran Supreme 20 00:01:07,920 --> 00:01:11,479 Speaker 3: leader have all died in the attacks. Iran security chief 21 00:01:11,520 --> 00:01:15,119 Speaker 3: says Tehran won't negotiate with the US, and this morning 22 00:01:15,200 --> 00:01:18,600 Speaker 3: Kuwaits Army said a number of US fighter jets had crashed, 23 00:01:18,680 --> 00:01:22,560 Speaker 3: but all crew members survived. Iran's semi official Fars news 24 00:01:22,640 --> 00:01:25,800 Speaker 3: agency says five hundred and fifty five people have been 25 00:01:25,880 --> 00:01:27,920 Speaker 3: killed in US and Israeli attacks. 26 00:01:28,240 --> 00:01:30,960 Speaker 2: Well Later this morning, Nathan the Pentagon plans to hold 27 00:01:31,000 --> 00:01:33,840 Speaker 2: a news conference on the operation against Iran, and that 28 00:01:33,959 --> 00:01:36,400 Speaker 2: said for eight am Wall Street time. The White House 29 00:01:36,400 --> 00:01:39,000 Speaker 2: says Congress will receive a full briefing tomorrow from the 30 00:01:39,000 --> 00:01:43,720 Speaker 2: Pentagon State Department. In Cia, Republican Congressman Michael McCall says 31 00:01:43,720 --> 00:01:46,160 Speaker 2: Iran faces an extraordinary opportunity. 32 00:01:46,520 --> 00:01:50,160 Speaker 6: Since nineteen seventy nine, there's been a dark veil that 33 00:01:50,320 --> 00:01:54,240 Speaker 6: descended across the Middle East, and that shroud has now 34 00:01:54,280 --> 00:01:57,080 Speaker 6: been lifted, and the people of Iran now have a 35 00:01:57,200 --> 00:02:00,000 Speaker 6: chance for freedom and a chance to take back their country. 36 00:02:00,000 --> 00:02:03,520 Speaker 2: Than read but the top Democrat on the Senate Intelligence Committee, 37 00:02:03,560 --> 00:02:06,400 Speaker 2: Mark Warner, says the White House still has not spelled 38 00:02:06,400 --> 00:02:08,680 Speaker 2: out its ultimate goals from this conflict. 39 00:02:09,200 --> 00:02:13,320 Speaker 7: Is the goal Iran's nuclear capability is, it's the ballistic missiles, 40 00:02:13,360 --> 00:02:15,640 Speaker 7: regime change. And let me acknowledge the fact that the 41 00:02:15,680 --> 00:02:18,800 Speaker 7: Iranian leadership, the Supreme leader's taken out. 42 00:02:19,120 --> 00:02:20,399 Speaker 5: I mean that is good news. 43 00:02:20,480 --> 00:02:25,000 Speaker 7: I mean this regime is awful. But I can tell 44 00:02:25,000 --> 00:02:29,480 Speaker 7: you from the intelligence standpoint, we don't have great visibility 45 00:02:30,040 --> 00:02:32,600 Speaker 7: about who or what comes next. 46 00:02:32,960 --> 00:02:36,639 Speaker 2: Senator Warner and Congress and McCall where guests on our 47 00:02:36,720 --> 00:02:40,080 Speaker 2: new show Bloomberg This Weekend. Catch the show Saturdays and 48 00:02:40,120 --> 00:02:43,640 Speaker 2: Sundays from seven to ten am Eastern across Bloomberg platforms. 49 00:02:43,720 --> 00:02:46,600 Speaker 3: El Er Karen Iran is looking for a successor to 50 00:02:46,680 --> 00:02:50,000 Speaker 3: Ayatola Ali Hameni, the eighty six year old Supreme Leader 51 00:02:50,040 --> 00:02:52,800 Speaker 3: of Iran, who was killed in the air strikes. Golnar 52 00:02:52,880 --> 00:02:55,480 Speaker 3: Motavali leads Bloomberg's coverage in Iran. 53 00:02:56,040 --> 00:03:00,880 Speaker 8: In Iran, there is always a under the public. There 54 00:03:00,919 --> 00:03:05,640 Speaker 8: is always a contingency for the appointment and the succession 55 00:03:05,680 --> 00:03:09,120 Speaker 8: process of the Supreme Leader, almost as as soon as 56 00:03:09,160 --> 00:03:13,160 Speaker 8: the Supreme Media is appointed in the first place, and 57 00:03:13,200 --> 00:03:15,080 Speaker 8: that's actually embedded in the constitution. 58 00:03:15,639 --> 00:03:18,239 Speaker 5: So even if Harmony had died. 59 00:03:18,000 --> 00:03:21,280 Speaker 8: Of natural causes or of old age, and he was 60 00:03:21,320 --> 00:03:24,839 Speaker 8: eighty six years old, so there would have been some 61 00:03:24,880 --> 00:03:26,960 Speaker 8: form of preparation for his succession. 62 00:03:27,040 --> 00:03:28,400 Speaker 5: We've known that for some time. 63 00:03:28,520 --> 00:03:32,040 Speaker 3: Bloomberg's goldnarmotiv all these says. Iran's constitution does call for 64 00:03:32,080 --> 00:03:34,880 Speaker 3: an assembly of experts to choose the next supreme leader, 65 00:03:34,920 --> 00:03:37,320 Speaker 3: but that may not be possible in war time. 66 00:03:37,680 --> 00:03:39,960 Speaker 2: Well, Nathan, there are more signs the conflict is spreading 67 00:03:39,960 --> 00:03:43,320 Speaker 2: across the region. Israel bombay route and told residents in 68 00:03:43,440 --> 00:03:47,160 Speaker 2: dozens of southern Lebanese villages to leave after the militant 69 00:03:47,200 --> 00:03:50,360 Speaker 2: Hasbola group fired rockets and drones into the Jewish state. 70 00:03:50,760 --> 00:03:54,480 Speaker 2: Speaking yesterday through a translator before the latest military action 71 00:03:54,640 --> 00:03:58,120 Speaker 2: was announced, Israeli Prime Minister Benjaminett and yeah, who praised 72 00:03:58,160 --> 00:04:00,720 Speaker 2: the US Israel offensive against Iran. 73 00:04:01,040 --> 00:04:04,680 Speaker 6: It has truly reached the record of all times an 74 00:04:04,680 --> 00:04:06,400 Speaker 6: alliance in peace and. 75 00:04:06,400 --> 00:04:10,640 Speaker 9: In war, and this war will bring about. 76 00:04:10,600 --> 00:04:15,520 Speaker 2: True Israeli Prime Minister Benjamin Atnyelho's speaking through an interpreter. 77 00:04:15,640 --> 00:04:18,839 Speaker 2: Elebenese authority say more than thirty people were killed in 78 00:04:18,880 --> 00:04:20,839 Speaker 2: the Israeli airstrikes today. 79 00:04:20,720 --> 00:04:22,800 Speaker 3: And there is plenty of reaction from world leaders this 80 00:04:22,880 --> 00:04:25,920 Speaker 3: morning to the military action in Iran. Karen Japanese Prime 81 00:04:25,960 --> 00:04:30,039 Speaker 3: Minister sana Etaka Aichi condemned Iran's nuclear program in a 82 00:04:30,160 --> 00:04:34,920 Speaker 3: carefully worded response that avoided commenting on whether Tokyo supported 83 00:04:35,120 --> 00:04:40,280 Speaker 3: Washington strikes on Tehran. North Korea condemned Israel's military attack 84 00:04:40,440 --> 00:04:44,320 Speaker 3: with US military support as a quote shameless and illegal 85 00:04:44,440 --> 00:04:47,919 Speaker 3: active aggression. The UK, France and Germany have issued a 86 00:04:47,960 --> 00:04:50,680 Speaker 3: joint statement saying they were not involved in the strikes 87 00:04:50,680 --> 00:04:53,320 Speaker 3: but are in close contact with the US, Israel and 88 00:04:53,440 --> 00:04:56,640 Speaker 3: partners in the region. Prime Minister kir Starmer says the 89 00:04:56,760 --> 00:04:59,200 Speaker 3: UK will not be involved in offensive action. 90 00:05:00,000 --> 00:05:03,000 Speaker 9: We want to be very clear. We all remember the 91 00:05:03,040 --> 00:05:07,520 Speaker 9: mistakes of Iraq and we have learned those lessons. We 92 00:05:07,520 --> 00:05:11,680 Speaker 9: were not involved in the initial strikes on Iran and 93 00:05:11,720 --> 00:05:15,520 Speaker 9: we will not join offensive action now. But Iran is 94 00:05:15,600 --> 00:05:21,000 Speaker 9: pursuing a scorched earth strategy, so we are supporting the 95 00:05:21,120 --> 00:05:26,040 Speaker 9: collective self defense of our allies and our people in 96 00:05:26,080 --> 00:05:26,600 Speaker 9: the region. 97 00:05:26,880 --> 00:05:29,680 Speaker 3: Prime Minister Kier Starmer says the UK has since allowed 98 00:05:29,720 --> 00:05:32,240 Speaker 3: the US to make use of British military basis for 99 00:05:32,279 --> 00:05:35,200 Speaker 3: the specific purpose of destroying Iranian missile sites. 100 00:05:35,560 --> 00:05:38,279 Speaker 2: Well, Nathan, as we mentioned, there's a massive market reaction 101 00:05:38,400 --> 00:05:41,279 Speaker 2: this morning to the strikes in Iran, and Bloomberg's John 102 00:05:41,360 --> 00:05:43,360 Speaker 2: Tucker joins us with the very latest. 103 00:05:43,440 --> 00:05:44,880 Speaker 5: John, good morning, morning Krol. 104 00:05:44,920 --> 00:05:47,720 Speaker 10: Let's start with the major stin cambridges worldwide, pushing lower 105 00:05:47,800 --> 00:05:51,080 Speaker 10: US stock futures down one percent. Brent krue this is 106 00:05:51,120 --> 00:05:55,159 Speaker 10: the international benchmark now up over eight percent, about seventy 107 00:05:55,200 --> 00:05:58,320 Speaker 10: two dollars a barrel spot gold that has topped fifty 108 00:05:58,400 --> 00:06:01,000 Speaker 10: four hundred dollars announced bill holding on a gain at 109 00:06:01,000 --> 00:06:03,279 Speaker 10: more than three percent that we saw last week. The 110 00:06:03,400 --> 00:06:06,120 Speaker 10: dollar performing like a haven asset right now up six 111 00:06:06,200 --> 00:06:10,280 Speaker 10: tenths of a percent dollar DXY. John Taylor at Alliance Bernstein' 112 00:06:10,279 --> 00:06:12,719 Speaker 10: says markets have reached critical levels. 113 00:06:13,200 --> 00:06:16,039 Speaker 11: Actually think the longer this goes on, and if oil 114 00:06:16,040 --> 00:06:19,040 Speaker 11: prices stay higher for a longer period, people will start 115 00:06:19,040 --> 00:06:21,960 Speaker 11: to think about the negative economic excuse me negative economic 116 00:06:22,040 --> 00:06:25,000 Speaker 11: consequences of that, and that could push treasury old Slova. 117 00:06:25,320 --> 00:06:28,279 Speaker 10: Now, with the rise in oil, the major energy companies 118 00:06:28,279 --> 00:06:31,640 Speaker 10: seeing strong gains across Asia and Europe. Let's look at 119 00:06:31,640 --> 00:06:36,039 Speaker 10: Exon Mobile and Occidental Petroleum pre market up around five 120 00:06:36,080 --> 00:06:39,000 Speaker 10: percent each. Now with the prospect of an extended work 121 00:06:39,080 --> 00:06:42,320 Speaker 10: you have the defense stocks. They are jumping RTX Corporation, 122 00:06:42,960 --> 00:06:46,359 Speaker 10: Lockheed Martin pre market they are up over six percent, 123 00:06:46,839 --> 00:06:49,360 Speaker 10: and then of course the airline and travel stocks will 124 00:06:49,400 --> 00:06:51,280 Speaker 10: have more in the moment, but they have plunged from 125 00:06:51,520 --> 00:06:54,839 Speaker 10: closures of the airspace and the rise in oil. The 126 00:06:54,880 --> 00:06:58,400 Speaker 10: closing of Middle East airspace also threatening the margins of 127 00:06:58,560 --> 00:07:02,680 Speaker 10: freight carriers like FedEx and United Parcels Service. So the 128 00:07:02,760 --> 00:07:06,320 Speaker 10: impact your stretches to almost every corner of the market, 129 00:07:06,600 --> 00:07:08,559 Speaker 10: you know, New York. I'm John Tucker, Bloomberg Radio. 130 00:07:08,680 --> 00:07:10,640 Speaker 3: All right, John, Thanks, let's get more now on that 131 00:07:10,720 --> 00:07:13,679 Speaker 3: travel chaos you mentioned in the Middle East and beyond. 132 00:07:13,760 --> 00:07:18,000 Speaker 3: Airlines across the Persian Gulf have extended suspensions of operations. 133 00:07:18,200 --> 00:07:22,160 Speaker 3: Bloomberg's Aviation and transport reporter Danny lisays it's not clear 134 00:07:22,200 --> 00:07:24,240 Speaker 3: when these disruptions might end. 135 00:07:24,600 --> 00:07:28,000 Speaker 12: We're looking at around thousands of flights today being canceled 136 00:07:28,320 --> 00:07:31,400 Speaker 12: in and out of some of these key transit hubs, 137 00:07:31,400 --> 00:07:35,440 Speaker 12: particularly to Buy the borld's busiest international airport for for 138 00:07:35,520 --> 00:07:38,840 Speaker 12: transit travel, and that also extends to Abu Dhabi and Doha. 139 00:07:38,960 --> 00:07:41,600 Speaker 12: So with the region's air space also being closed, it 140 00:07:41,640 --> 00:07:45,160 Speaker 12: really means that the airlines cannot operate in the Persian Golf. 141 00:07:45,200 --> 00:07:49,080 Speaker 3: That's Bloomberg's Danny Lee reporting, and European airline stocks are plunging. 142 00:07:49,200 --> 00:07:52,960 Speaker 3: Luft Hansa's down more than six percent. IAG, the owner 143 00:07:52,960 --> 00:07:55,520 Speaker 3: of British Airways, is down five percent. 144 00:07:56,040 --> 00:07:59,360 Speaker 2: Nathan, Amazon Web Services as it suffered a disruption to 145 00:07:59,480 --> 00:08:03,280 Speaker 2: it after our unidentified object struck one of its data 146 00:08:03,360 --> 00:08:07,520 Speaker 2: centers in the United Arab Emirates. The incident impacted services 147 00:08:07,520 --> 00:08:09,960 Speaker 2: from the data center in one of its regional groups, 148 00:08:09,960 --> 00:08:12,240 Speaker 2: and power to the facility was shut off by the 149 00:08:12,280 --> 00:08:15,680 Speaker 2: fire department as they worked to extinguish them Blaze. 150 00:08:15,840 --> 00:08:19,520 Speaker 3: In company news, Karen Berkshire Hathaway shares her down almost 151 00:08:19,560 --> 00:08:22,560 Speaker 3: two percent in early training. In addition to the overall 152 00:08:22,640 --> 00:08:26,640 Speaker 3: market weekness this morning, the conglomerates operating profits fell nearly 153 00:08:26,720 --> 00:08:31,400 Speaker 3: thirty percent in Warren Buffett's final quarter, as CEO analyst 154 00:08:31,480 --> 00:08:34,319 Speaker 3: noted weakness in Berkshire's insurance businesses. 155 00:08:35,000 --> 00:08:37,240 Speaker 2: And we have a programming note here, Nathan, As we 156 00:08:37,520 --> 00:08:41,079 Speaker 2: just saw this past weekend. Markets may close on Friday, 157 00:08:41,120 --> 00:08:43,800 Speaker 2: but the world does not. And that's why we're bringing 158 00:08:43,880 --> 00:08:47,560 Speaker 2: you a new live radio and TV show, Bloomberg this 159 00:08:47,679 --> 00:08:50,760 Speaker 2: weekend is looking beyond the daily headlines to the bigger 160 00:08:50,800 --> 00:08:54,840 Speaker 2: themes driving politics, business and culture. Joined David Gura, Christina 161 00:08:54,920 --> 00:08:59,080 Speaker 2: Ruffini and Lisa Matteo for smart conversations and in depth 162 00:08:59,200 --> 00:09:02,000 Speaker 2: interviews at he makes sense of the week that's been 163 00:09:02,240 --> 00:09:05,440 Speaker 2: and what comes next. Get the show live Saturdays and 164 00:09:05,480 --> 00:09:09,320 Speaker 2: Sundays from seven am Eastern on Bloomberg Radio TV and 165 00:09:09,360 --> 00:09:14,880 Speaker 2: the Bloomberg Business App. Time now for look at some 166 00:09:14,920 --> 00:09:16,800 Speaker 2: of the other stories making news in New York and 167 00:09:16,880 --> 00:09:19,240 Speaker 2: around the world. And for that we're joined by Bloomberg. 168 00:09:19,320 --> 00:09:21,360 Speaker 2: So Michael Barr, Michael, good morning. 169 00:09:21,120 --> 00:09:24,720 Speaker 13: Good morning, Karen. Authorities say a gunman wearing clothes with 170 00:09:24,920 --> 00:09:28,680 Speaker 13: an Iranian flag design and the words property of Allah 171 00:09:29,080 --> 00:09:32,800 Speaker 13: killed two people and wounded fourteen at an Austin, Texas bar. 172 00:09:33,400 --> 00:09:36,120 Speaker 13: Police shot and killed a man who had used both 173 00:09:36,200 --> 00:09:39,120 Speaker 13: a pistol and a rifle in the shooting early Sunday, 174 00:09:39,720 --> 00:09:42,840 Speaker 13: day after the US and Israel launched an attack on Iran. 175 00:09:43,440 --> 00:09:46,400 Speaker 13: FBI Special Agent in Charge Alex Dorian. 176 00:09:46,559 --> 00:09:50,640 Speaker 14: There were indicators that on the subject and in his 177 00:09:51,280 --> 00:09:56,040 Speaker 14: vehicle that indicate potential nexus to terrorism. Again, it's till 178 00:09:56,160 --> 00:09:59,840 Speaker 14: too early to make a determination on that. That's why 179 00:09:59,840 --> 00:10:03,160 Speaker 14: we investigated very closely with our partners with Austin Police Department. 180 00:10:04,000 --> 00:10:07,800 Speaker 13: Multiple people briefed on the investigation saying the suspected gunman 181 00:10:07,960 --> 00:10:11,359 Speaker 13: is a fifty three year old man originally from Senegal. 182 00:10:12,040 --> 00:10:15,040 Speaker 13: The Supreme Court will hear arguments today in a major's 183 00:10:15,080 --> 00:10:18,560 Speaker 13: Second Amendment case over whether unlawful drug users can be 184 00:10:18,600 --> 00:10:23,280 Speaker 13: barred from owning firearms. The government is arguing that there 185 00:10:23,400 --> 00:10:27,120 Speaker 13: has always been laws restricting gun access to people who 186 00:10:27,200 --> 00:10:31,360 Speaker 13: are considered habitual drunkards. At least for forty three states 187 00:10:31,440 --> 00:10:35,480 Speaker 13: have laws restricting gun access to drug addicts. The Reverend 188 00:10:35,559 --> 00:10:38,880 Speaker 13: Jesse Jackson will be in South Carolina for a final 189 00:10:38,960 --> 00:10:43,360 Speaker 13: public farewell today. Jackson will lie in state at the 190 00:10:43,400 --> 00:10:48,440 Speaker 13: Capitol in Columbia. After the South Carolina services, Jackson's body 191 00:10:48,880 --> 00:10:51,680 Speaker 13: is expected to be taken back to Chicago before a 192 00:10:51,720 --> 00:10:56,719 Speaker 13: final set of services at his Rainbow Push Coalition Chicago headquarters. 193 00:10:57,080 --> 00:11:01,080 Speaker 13: Jackson died on February seventeenth, the day e four. A 194 00:11:01,160 --> 00:11:04,760 Speaker 13: wild scene in eastern Texas over the weekend, a hot 195 00:11:04,800 --> 00:11:09,080 Speaker 13: air balloon crashed into a communications tower. The two people 196 00:11:09,120 --> 00:11:12,560 Speaker 13: in the balloon were stuck for more than nine hundred 197 00:11:12,600 --> 00:11:16,880 Speaker 13: feet in the air. First responders quickly arrived on the scene. 198 00:11:16,960 --> 00:11:17,920 Speaker 13: This man witnessed it. 199 00:11:18,520 --> 00:11:21,400 Speaker 7: The people are actually coming down right now and it's 200 00:11:21,400 --> 00:11:22,120 Speaker 7: pretty wild. 201 00:11:23,080 --> 00:11:24,880 Speaker 15: I'm assuming they have harnesses of stuff. 202 00:11:24,920 --> 00:11:28,520 Speaker 5: I sure hope. So this is one of the craziest things. 203 00:11:29,120 --> 00:11:33,160 Speaker 13: Fire Fighters performed a complicated rescue that took about four hours. 204 00:11:33,600 --> 00:11:36,120 Speaker 13: Global news twenty four hours a day and whenever you 205 00:11:36,160 --> 00:11:38,480 Speaker 13: want it with Bloomberg News. Now that Michael Barrn. This 206 00:11:38,520 --> 00:11:39,360 Speaker 13: is Bloomberg Herron. 207 00:11:40,280 --> 00:11:43,440 Speaker 2: Thanks Michael a time now for our Bloomberg Sports update, 208 00:11:43,480 --> 00:11:45,640 Speaker 2: and for that we bring in John stash. 209 00:11:45,320 --> 00:11:46,360 Speaker 5: Hour, Thanks Aaron. 210 00:11:46,440 --> 00:11:48,880 Speaker 16: Sunday in the NBA began in New York. The knicksbeat 211 00:11:48,920 --> 00:11:51,520 Speaker 16: the Spurs one fourteen to eighty nine. That in San 212 00:11:51,559 --> 00:11:54,840 Speaker 16: Antonio's eleven game winning streak. The last game was in Boston. 213 00:11:54,880 --> 00:11:57,199 Speaker 16: The Celtics improved to forty and twenty. They meet the 214 00:11:57,240 --> 00:11:59,920 Speaker 16: Sixers one fourteen to ninety eight. Colleg Jube to the 215 00:12:00,080 --> 00:12:03,160 Speaker 16: Big Ten in upset. Ohio State b to eighth rank Purdue. 216 00:12:03,320 --> 00:12:07,240 Speaker 16: Michigan State won in Indiana. Chad Baker Mizarra is USC's 217 00:12:07,280 --> 00:12:10,079 Speaker 16: top scorer. On Saturday, he asked to be taken out 218 00:12:10,080 --> 00:12:11,440 Speaker 16: of a game, and then he went and sat in 219 00:12:11,480 --> 00:12:14,360 Speaker 16: the stands USC announced he's no longer with the team. 220 00:12:14,520 --> 00:12:15,800 Speaker 16: That to Bloomberg Sports, update. 221 00:12:17,320 --> 00:12:21,080 Speaker 2: Stay with us. More from Bloomberg Daybreak coming up after this. 222 00:12:25,400 --> 00:12:29,600 Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM, 223 00:12:29,720 --> 00:12:32,560 Speaker 1: and around the world on Bloomberg dot Com and the 224 00:12:32,600 --> 00:12:35,679 Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak. 225 00:12:35,800 --> 00:12:37,080 Speaker 5: Good morning, I'm Nathan Hagrid. 226 00:12:37,200 --> 00:12:39,679 Speaker 3: Is a third day of military conflict across the Middle 227 00:12:39,679 --> 00:12:42,520 Speaker 3: East after the US and Israeli strikes on Iran that 228 00:12:42,600 --> 00:12:46,560 Speaker 3: claimed Supreme Leader Iatola alihame Nie. President Trump says the 229 00:12:46,600 --> 00:12:51,040 Speaker 3: operation against Iran will continue until all his objectives are met. 230 00:12:51,480 --> 00:12:54,880 Speaker 4: These actions are right and they are necessary to ensure 231 00:12:54,920 --> 00:13:00,160 Speaker 4: that Americans will never have to face a radical blood Thursday, 232 00:13:00,000 --> 00:13:05,120 Speaker 4: the terrorist regime armed with nuclear weapons and lots of threats. 233 00:13:05,120 --> 00:13:07,800 Speaker 3: Was President Trump and his latest social media post on 234 00:13:07,920 --> 00:13:10,760 Speaker 3: the conflict in Iran. Joining US now from Dubai is 235 00:13:10,800 --> 00:13:14,000 Speaker 3: Bloomberg Middle East correspondent Jumana Bursecci, the anchor of Bloomberg 236 00:13:14,040 --> 00:13:16,160 Speaker 3: Horizons on Bloomberg Television. 237 00:13:16,440 --> 00:13:19,000 Speaker 5: Jumana, good morning. What is the latest from where you sait? 238 00:13:19,960 --> 00:13:21,960 Speaker 15: Well, the latest is that it's very clear that this 239 00:13:22,000 --> 00:13:25,400 Speaker 15: has become a regional conflicts, regional war. Over the course 240 00:13:25,440 --> 00:13:27,600 Speaker 15: of the last three days, there are now eleven countries 241 00:13:27,640 --> 00:13:30,920 Speaker 15: involved in the Iran war, and what started off as 242 00:13:31,200 --> 00:13:35,680 Speaker 15: an operation on Saturday morning, joint military operation between the 243 00:13:35,800 --> 00:13:39,439 Speaker 15: US and Israel to take out what now we understand 244 00:13:39,600 --> 00:13:43,920 Speaker 15: was the Ayatola alongside some key personnel, has expanded and 245 00:13:44,120 --> 00:13:46,880 Speaker 15: there doesn't seem to be any signs of things letting up. 246 00:13:47,240 --> 00:13:50,720 Speaker 15: We heard from the Israeli Prime Minister yesterday, Benjaminataniajuan. He 247 00:13:50,800 --> 00:13:53,480 Speaker 15: was saying that the operations actually planned to intensify in 248 00:13:53,520 --> 00:13:56,360 Speaker 15: coming days. The US Central Command have said that they've 249 00:13:56,400 --> 00:14:01,240 Speaker 15: hit a thousand targets and around Iran. President Trump yesterday 250 00:14:01,240 --> 00:14:04,600 Speaker 15: said that they downed nine Iranian warships that going after 251 00:14:04,760 --> 00:14:09,040 Speaker 15: the Iranian navy. And in response to that, you would 252 00:14:09,080 --> 00:14:11,880 Speaker 15: think that perhaps this would have been an opportunity for 253 00:14:12,040 --> 00:14:14,840 Speaker 15: Iran to reassess their options or perhaps even come to 254 00:14:14,880 --> 00:14:17,560 Speaker 15: the table again with the US. But in fact this 255 00:14:17,640 --> 00:14:20,560 Speaker 15: morning we heard from one of the key voices, a 256 00:14:20,600 --> 00:14:23,840 Speaker 15: fellow called Ali Larijani, who is the chief of the 257 00:14:23,960 --> 00:14:27,520 Speaker 15: National Supreme Council, and he said that the negotiations with 258 00:14:27,600 --> 00:14:29,680 Speaker 15: the US is not back on the table again, and 259 00:14:29,720 --> 00:14:34,920 Speaker 15: they continue to direct missiles and drones towards Israel, key 260 00:14:35,000 --> 00:14:38,680 Speaker 15: golf states, and it's caused a huge amount of disruption here. 261 00:14:38,880 --> 00:14:41,520 Speaker 15: Not a lot in terms of overall casualties because most 262 00:14:41,560 --> 00:14:45,040 Speaker 15: of these missiles have been intercepted, most of them, but 263 00:14:45,120 --> 00:14:48,240 Speaker 15: a lot of debris has caused considerable damage. And they've 264 00:14:48,240 --> 00:14:51,120 Speaker 15: also targeted the airports, which means that it estimated they 265 00:14:51,120 --> 00:14:54,600 Speaker 15: about three hundred thousand people estimated around the Gulf region 266 00:14:54,720 --> 00:14:59,720 Speaker 15: right now unable to travel because of the airspace closure. So, yes, 267 00:15:00,000 --> 00:15:01,400 Speaker 15: it's definitely an intensification. 268 00:15:02,520 --> 00:15:05,600 Speaker 3: Is it an intensification that we're seeing in terms of 269 00:15:05,880 --> 00:15:10,000 Speaker 3: Arab states retaliating or is it just defensive at this point? 270 00:15:11,040 --> 00:15:16,400 Speaker 15: So in so far as Arab states have responded, it's 271 00:15:16,400 --> 00:15:21,000 Speaker 15: been calibrated very carefully, but the language would suggest that 272 00:15:21,080 --> 00:15:25,200 Speaker 15: they are very unhappy with the way Iran has responded here. 273 00:15:26,240 --> 00:15:28,960 Speaker 15: Iran have said, the Ranian officials have said that they've 274 00:15:28,960 --> 00:15:32,440 Speaker 15: been targeting US assets. But actually, when you're in a 275 00:15:32,480 --> 00:15:36,000 Speaker 15: situation where a significant amount of damage is being leveled 276 00:15:36,000 --> 00:15:40,120 Speaker 15: at key infrastructure, including the airports, which as you know, 277 00:15:40,160 --> 00:15:43,000 Speaker 15: for many of these economies their key passageways between east 278 00:15:43,040 --> 00:15:47,760 Speaker 15: and west, between Asia and Europe, that becomes very damaging 279 00:15:47,960 --> 00:15:50,440 Speaker 15: to what these Gulf states are trying to achieve. And 280 00:15:50,800 --> 00:15:52,960 Speaker 15: you know, I've spoken to many diplomats over the last 281 00:15:52,960 --> 00:15:55,400 Speaker 15: couple of years, and they've talked about de escalation, the 282 00:15:55,440 --> 00:16:00,440 Speaker 15: importance of maintaining this image of being a safe haven 283 00:16:00,920 --> 00:16:03,080 Speaker 15: or even an oasis in a region that tends to 284 00:16:03,120 --> 00:16:09,560 Speaker 15: be quite will conflict's written. But the feeling and the 285 00:16:10,320 --> 00:16:14,360 Speaker 15: concern is that that image is being jeopardized because of 286 00:16:14,400 --> 00:16:16,720 Speaker 15: the actions that Iran has undertaken over the last couple 287 00:16:16,760 --> 00:16:19,680 Speaker 15: of days. And so the language that has come out 288 00:16:19,920 --> 00:16:24,840 Speaker 15: has suggested that the Gulf state's position towards Iran may 289 00:16:24,880 --> 00:16:28,920 Speaker 15: be changing, and if anything, it's unifying them together. It's 290 00:16:28,960 --> 00:16:32,680 Speaker 15: bringing them closer together and also bringing them perhaps even 291 00:16:32,720 --> 00:16:35,440 Speaker 15: closer to the United States. And some of them that 292 00:16:35,480 --> 00:16:38,440 Speaker 15: they might not say this on record, but behind closed doors, 293 00:16:38,880 --> 00:16:42,200 Speaker 15: are actually endorsing what the US is doing right now. 294 00:16:42,520 --> 00:16:48,560 Speaker 3: Wow, given that we've seen this defiant stance from Tehran, 295 00:16:48,960 --> 00:16:54,720 Speaker 3: the reaction militarily, this idea of Tehran coming back to 296 00:16:54,760 --> 00:16:58,360 Speaker 3: the table that President Trump has put out there, it 297 00:16:58,480 --> 00:17:01,840 Speaker 3: raises the question would be coming back to the table 298 00:17:02,000 --> 00:17:05,080 Speaker 3: considering that there is no supreme leader at this point, 299 00:17:05,160 --> 00:17:09,000 Speaker 3: and from what we understand there's still a process of 300 00:17:09,000 --> 00:17:10,639 Speaker 3: trying to figure out who that person is. 301 00:17:11,320 --> 00:17:14,200 Speaker 15: Yeah, correct that that's correct, And you've got to think 302 00:17:14,240 --> 00:17:16,920 Speaker 15: that anyway they would have been preparing for this scenario. 303 00:17:17,119 --> 00:17:20,159 Speaker 15: The Ayatola was eighty six years old, and yes, it 304 00:17:20,240 --> 00:17:24,680 Speaker 15: is a hugely consequential chapter in Iranian history that's now closed. 305 00:17:25,240 --> 00:17:28,760 Speaker 15: But at the same time, his legacy is that he 306 00:17:28,880 --> 00:17:34,960 Speaker 15: massively strengthened the military, the Revolutionary Guard, alongside these hardliner clerics, 307 00:17:35,000 --> 00:17:38,400 Speaker 15: and so he built up a system that is very 308 00:17:38,440 --> 00:17:41,680 Speaker 15: well preserved, and the procedure is just kicking into place now. 309 00:17:41,680 --> 00:17:45,280 Speaker 15: There's a transitional Council composed of three members that at 310 00:17:45,280 --> 00:17:48,280 Speaker 15: the same time there's going to be this larger eighty 311 00:17:48,359 --> 00:17:52,600 Speaker 15: eight cleric member group, a committee that will get together 312 00:17:52,720 --> 00:17:55,080 Speaker 15: and they will ultimately decide on who the successor of 313 00:17:55,119 --> 00:17:57,640 Speaker 15: Homine is going to be. A few names are being 314 00:17:57,640 --> 00:18:00,000 Speaker 15: thrown out there. All of them tend to be hardliners, 315 00:18:00,000 --> 00:18:01,600 Speaker 15: as you would imagine. I mean, they're not going to 316 00:18:01,640 --> 00:18:05,119 Speaker 15: select somebody who isn't approved by these clerics but also 317 00:18:05,440 --> 00:18:09,880 Speaker 15: doesn't get the seal approval of the Revolutionary Guard. But 318 00:18:09,920 --> 00:18:12,560 Speaker 15: the point is the language here is one of defiance 319 00:18:12,640 --> 00:18:15,120 Speaker 15: that's coming out of Iran, and there are no signs 320 00:18:15,200 --> 00:18:18,520 Speaker 15: yet of them capitulating or of the system collapsing. 321 00:18:19,560 --> 00:18:23,760 Speaker 3: Jumana Borsecchi of Bloomberg News, our Middle East correspondent and 322 00:18:23,840 --> 00:18:28,639 Speaker 3: host of Bloomberg Horizons on Bloomberg Television, juwanna thank you 323 00:18:28,680 --> 00:18:30,600 Speaker 3: for this debrief. We're going to be checking back with 324 00:18:30,720 --> 00:18:33,960 Speaker 3: you throughout the morning and into the days to come, 325 00:18:34,160 --> 00:18:37,640 Speaker 3: I'm sure, and as we continue our team coverage of 326 00:18:37,680 --> 00:18:40,359 Speaker 3: the conflict in Iran and the broader Middle East. We 327 00:18:40,400 --> 00:18:43,800 Speaker 3: are joined now from Tel Aviv by our Israel bureau 328 00:18:43,840 --> 00:18:47,200 Speaker 3: chief for Bloomberg News, Ethan bron Or. Ethan, It's great 329 00:18:47,200 --> 00:18:50,560 Speaker 3: to have you with us this morning. From your perspective, 330 00:18:50,600 --> 00:18:55,639 Speaker 3: where do things stand now? What Nathan, I think Jaman 331 00:18:55,720 --> 00:18:57,840 Speaker 3: has summed it up very very well. I mean, the 332 00:18:57,880 --> 00:19:01,240 Speaker 3: one element she didn't mention is that last night his 333 00:19:01,400 --> 00:19:05,760 Speaker 3: Belah sent some rockets and missiles and drones into northern Israel, 334 00:19:05,800 --> 00:19:08,680 Speaker 3: and the Israelis have responded. 335 00:19:08,280 --> 00:19:13,080 Speaker 5: With a great force. They've already killed thirty plus people. 336 00:19:13,200 --> 00:19:16,080 Speaker 17: They were bombing his bull of sites in southern Beirut, 337 00:19:16,200 --> 00:19:20,040 Speaker 17: and they've ordered some fifty plus villages in the south 338 00:19:20,080 --> 00:19:25,480 Speaker 17: of Lebanon to evacuate. I don't know where this is going, 339 00:19:25,520 --> 00:19:28,800 Speaker 17: whether the Israelis are really going to take on his Belah. 340 00:19:28,920 --> 00:19:30,960 Speaker 17: I think they've been looking for a reason to try 341 00:19:31,000 --> 00:19:33,080 Speaker 17: to do more to disarm his Belah after the. 342 00:19:34,920 --> 00:19:36,160 Speaker 5: Ceasefire of two years ago. 343 00:19:36,240 --> 00:19:40,399 Speaker 17: But I do think that what you guys were talking about, 344 00:19:40,480 --> 00:19:45,119 Speaker 17: the potential inclusion of the GCC, of the Golf Cooperation Council, 345 00:19:45,280 --> 00:19:48,560 Speaker 17: the Saudis, et cetera into this next phase, is the 346 00:19:48,600 --> 00:19:50,240 Speaker 17: most significant thing to watch. 347 00:19:51,000 --> 00:19:52,160 Speaker 5: We'll see what happens. 348 00:19:53,359 --> 00:19:56,960 Speaker 3: The headlines, some of which I've seen this morning, say 349 00:19:57,040 --> 00:20:00,600 Speaker 3: that Israel sees no need at this point for a 350 00:20:00,760 --> 00:20:05,160 Speaker 3: ground invasion into Lebanon to go after Hezbola. What does 351 00:20:05,200 --> 00:20:07,960 Speaker 3: that tell you about where things could be going at 352 00:20:07,960 --> 00:20:12,119 Speaker 3: this point and what the level of strength of Iran's 353 00:20:12,160 --> 00:20:15,560 Speaker 3: proxies is now now that so much of the leadership 354 00:20:15,560 --> 00:20:17,679 Speaker 3: in Iran itself has been decapitated. 355 00:20:18,720 --> 00:20:22,960 Speaker 17: Yes, you're right, I mean, obviously the result of October seventh, 356 00:20:23,320 --> 00:20:26,879 Speaker 17: twenty twenty three attack by Kamas on Israel. The goal 357 00:20:27,080 --> 00:20:30,600 Speaker 17: of that attack was to draw the proxies into a 358 00:20:30,680 --> 00:20:34,840 Speaker 17: kind of pincer motion against Israel, ultimately in theory to 359 00:20:34,880 --> 00:20:36,320 Speaker 17: just do away with this state. 360 00:20:37,119 --> 00:20:41,240 Speaker 5: I mean, this is a very powerful military force in Israel. 361 00:20:41,400 --> 00:20:44,159 Speaker 17: And the opposite has happened over the last two and 362 00:20:44,160 --> 00:20:46,720 Speaker 17: a half years, which is that Hisbolah, much of it 363 00:20:46,920 --> 00:20:49,760 Speaker 17: was really taken out, Kamas has been largely destroyed. 364 00:20:50,520 --> 00:20:54,400 Speaker 5: The Yasud regime in Syria, Fel. 365 00:20:54,520 --> 00:20:57,200 Speaker 17: And the Hutis are not destroyed, but they've been hit 366 00:20:57,240 --> 00:21:02,120 Speaker 17: pretty hard. So yes, the proxies, these are all proxy 367 00:21:02,160 --> 00:21:05,960 Speaker 17: militias that have relied on Iran, armed and funded by Iran, 368 00:21:06,400 --> 00:21:10,760 Speaker 17: are on their back feet. So I think that Israel, 369 00:21:11,600 --> 00:21:14,760 Speaker 17: first of all, when the spokesman of the military was 370 00:21:14,800 --> 00:21:16,800 Speaker 17: asked whether there might be a ground and curage and 371 00:21:16,840 --> 00:21:19,959 Speaker 17: it's Lebanon, he simply applied, all options are on the table. 372 00:21:20,440 --> 00:21:22,399 Speaker 17: My instinct at the moment is that you're right that 373 00:21:22,440 --> 00:21:25,080 Speaker 17: they probably won't, that they'll continue at it from the 374 00:21:25,119 --> 00:21:28,520 Speaker 17: air because they're really so focused on Iran right now. 375 00:21:28,640 --> 00:21:31,840 Speaker 17: But look, it is a kind of remaking of the 376 00:21:31,920 --> 00:21:37,000 Speaker 17: region's geostrategic balance. And now this final piece, which I 377 00:21:37,040 --> 00:21:39,040 Speaker 17: don't know where it's going, because I think that for 378 00:21:39,119 --> 00:21:43,439 Speaker 17: the Gulf countries seeing too strong in Israel is also 379 00:21:43,520 --> 00:21:47,280 Speaker 17: another issue. But between Israel and the US and one side, 380 00:21:47,280 --> 00:21:50,119 Speaker 17: and Iran on the other. With Iran attacking them. They 381 00:21:50,160 --> 00:21:52,280 Speaker 17: seem to be looking in the direction of the US 382 00:21:52,280 --> 00:21:54,119 Speaker 17: and Israel at least today. 383 00:21:54,400 --> 00:21:58,920 Speaker 3: To the idea of a rebalancing of the geopolitics in 384 00:21:58,960 --> 00:22:02,080 Speaker 3: the Middle East. Right now, we've talked together, you and 385 00:22:02,119 --> 00:22:04,800 Speaker 3: I for more than two and a half years. Now, 386 00:22:04,840 --> 00:22:07,840 Speaker 3: that's how long this conflict has been going on between 387 00:22:07,880 --> 00:22:12,679 Speaker 3: Israel and Hamas in Gaza. Now the focus has turned 388 00:22:13,080 --> 00:22:14,680 Speaker 3: more squarely on Iran. 389 00:22:15,080 --> 00:22:17,480 Speaker 5: Where is Israeli support for. 390 00:22:17,280 --> 00:22:21,000 Speaker 3: A potentially even more prolonged conflict in the Middle East. 391 00:22:22,680 --> 00:22:26,200 Speaker 17: Look, I don't know that we can measure the support 392 00:22:26,240 --> 00:22:28,879 Speaker 17: for a prolonged conflict, but certainly if you were to 393 00:22:28,920 --> 00:22:34,000 Speaker 17: take you if you could somehow take a mood measurement. Today, 394 00:22:34,560 --> 00:22:38,760 Speaker 17: I think there is resolve, if you'd like, in Israel, 395 00:22:39,080 --> 00:22:41,639 Speaker 17: even though many people are being forced to sleep in 396 00:22:41,720 --> 00:22:44,640 Speaker 17: shelters and so on. But there is a sense that's 397 00:22:44,640 --> 00:22:47,840 Speaker 17: this an existential threat to Israel over the last and 398 00:22:47,920 --> 00:22:51,120 Speaker 17: nearly fifty years, in the form of the Islamic Republic, 399 00:22:51,160 --> 00:22:53,840 Speaker 17: which has called for death to Israel, and which has 400 00:22:54,080 --> 00:22:58,720 Speaker 17: sponsored these militias, and which has been at least according 401 00:22:58,760 --> 00:23:02,000 Speaker 17: to US and israel early intelligence's been trying to build 402 00:23:02,200 --> 00:23:03,280 Speaker 17: a nuclear bomb. 403 00:23:03,760 --> 00:23:08,000 Speaker 5: All of these are reasons for Israel to feel that the. 404 00:23:08,600 --> 00:23:13,160 Speaker 17: Decapitating of the Islamic Republic for the killing of Alikhamani 405 00:23:13,400 --> 00:23:16,240 Speaker 17: and the other thirty or forty people around him is 406 00:23:16,280 --> 00:23:21,840 Speaker 17: an enormously significant achievement for Israel and will guarantee its 407 00:23:21,880 --> 00:23:23,720 Speaker 17: long term survival. 408 00:23:25,800 --> 00:23:29,200 Speaker 2: This is Bloomberg Daybreak, your morning podcast and the stories 409 00:23:29,280 --> 00:23:32,320 Speaker 2: making news from Wall Street to Washington and beyond. 410 00:23:32,560 --> 00:23:34,960 Speaker 3: Look for us on your podcast feed by six am 411 00:23:35,000 --> 00:23:38,399 Speaker 3: Eastern each morning, on Apple, Spotify, or manywhere else you listen. 412 00:23:38,640 --> 00:23:41,480 Speaker 2: You can also listen live each morning starting at five 413 00:23:41,520 --> 00:23:44,120 Speaker 2: am Wall Street time on Bloomberg eleven three to zero 414 00:23:44,240 --> 00:23:47,120 Speaker 2: in New York, Bloomberg in ninety nine to one in Washington, 415 00:23:47,200 --> 00:23:51,160 Speaker 2: Bloomberg ninety two nine in Boston, and nationwide on serious 416 00:23:51,359 --> 00:23:52,920 Speaker 2: XM Channel one twenty one. 417 00:23:53,280 --> 00:23:53,600 Speaker 1: Plus. 418 00:23:53,640 --> 00:23:56,240 Speaker 3: Listen coast to coast on the Bloomberg Business app Now 419 00:23:56,240 --> 00:23:59,600 Speaker 3: with Apple CarPlay and Android Atto interfaces. 420 00:23:59,119 --> 00:24:02,199 Speaker 2: And don't forget to to Bloomberg News Now. It's the 421 00:24:02,240 --> 00:24:05,399 Speaker 2: latest news whenever you want it in five minutes or less. 422 00:24:05,680 --> 00:24:08,760 Speaker 2: Search Bloomberg News Now and your favorite podcast platform to 423 00:24:08,760 --> 00:24:12,280 Speaker 2: stay informed all day long. I'm Karen Moscow. 424 00:24:12,080 --> 00:24:14,600 Speaker 3: And I'm Nathan Hager. Join us again tomorrow morning for 425 00:24:14,640 --> 00:24:16,520 Speaker 3: all the news you need to start your day right 426 00:24:16,600 --> 00:24:17,639 Speaker 3: here on Bloomberg. 427 00:24:17,720 --> 00:24:19,760 Speaker 8: Dabray