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

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Speaker 2: Good morning, I'm Karen Moscow and I'm Alexis christopherus. Here

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

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Speaker 3: Alexis who began with the latest developments in the Middle East,

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Speaker 3: where fighting continues. The US military struck Iran for a

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Speaker 3: second straight day, and Tron retaliated against American allies and

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Speaker 3: the Persian Gulf. President Trump spoke to reporters on Air

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Speaker 3: Force One.

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Speaker 4: We just said him very hard, and I say, we

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Speaker 4: hit up twenty to one. Every time they hit us,

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Speaker 4: We're gonna hit up twenty and we did it last night.

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Speaker 5: They did a little.

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Speaker 4: Something today, but it was really retribution for last night.

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Speaker 4: They hit actually three votes, not two, and we hit back.

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Speaker 3: Much on US Central Commands as it targeted arounds, air

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Speaker 3: defense systems, coastal surveillance assets, and missile and drone storage.

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Speaker 2: And the renewed fighting is raising fears that the tit

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Speaker 2: for tat attacks may do rail talks on a permanent

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Speaker 2: peace deal. Both the US and Iran are accusing each

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Speaker 2: other of violating a memorandum of understanding that established a

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Speaker 2: short term truce. We get more from Bloomberg Middle East

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Speaker 2: reporter Patrick Sykes.

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Speaker 5: The moment, it's more strikes than talks. Remember, we have

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Speaker 5: a kind of suspension of the talks at the moment

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Speaker 5: while the funeral proceedings for the former Supreme Leader Alicomedy

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Speaker 5: are going on, that is to conclude today with his

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Speaker 5: burial in Mashad. In the meantime, yeah, we have these strikes.

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Speaker 5: The strategy from the US side seems to be to

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Speaker 5: use them to let's say, pressure Iran into compromising. I

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Speaker 5: think in particular on the Strait of Hormu's front. Iran

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Speaker 5: is still insisting that it have some kind of sovereignty

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Speaker 5: over the future state of the Straight of Hormos, control

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Speaker 5: over the passage of ships within it. That's something that

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Speaker 5: of course the US and many other countries are still

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Speaker 5: very much resisting.

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Speaker 2: Bloomberg's Patrick Syke says another issue yet to be resolved

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Speaker 2: is the release of billions of dollars of frozen funds

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Speaker 2: to the Islamic Republic.

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Speaker 3: Well Alexa's The potential unraveling of a fragile truce between

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Speaker 3: the Iran and the US has renewed anxiety over fuel

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Speaker 3: prices traffic through the Straight up were removes came to

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Speaker 3: a near standstillm Chris Kennedy covers energy markets for Bloomberg.

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Speaker 6: Our base case is still that we are in that

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Speaker 6: sort of escalation and then the escalation period. But of

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Speaker 6: course these are pretty significant attacks. Two nights in a row.

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Speaker 6: Iran is taking hits to some of their missile stockpiles,

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Speaker 6: et cetera. And I think there is a risk that

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Speaker 6: we will see some retaliation from Iran that could do

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Speaker 6: some more lasting damage to export infrastructure, to oil production

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Speaker 6: and gas production infrastructure in the Gulf, and that would

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Speaker 6: of course have much longer term impacts on energy security.

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Speaker 3: And Bloomberg Energy reporter Chris Kennedy. Right now, oil is

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Speaker 3: falling after gaining more than six percent the past two sessions.

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Speaker 3: Checking West Texas Intermediate, it's down sixtensive percentage seventy three

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Speaker 3: dollars eleven cents a barrel Brent at seventy seven dollars

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Speaker 3: fifty five cents.

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Speaker 2: And Karen Major political news this morning here in the US,

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Speaker 2: Graham Platner suspended his Senate campaign in Maine. Bloomberg's John

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Speaker 2: Tucker joins us now with more. Good morning, John, and

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Speaker 2: alecsu Is.

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Speaker 7: The move by Platner follows sexual assault allegations. The forty

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Speaker 7: one year old Oyster farmer and military veteran posted a

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Speaker 7: video on social media.

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Speaker 8: I know that some will think it's an admission of guilt,

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Speaker 8: and it most certainly is not.

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Speaker 5: We're not doing it because of the allegations.

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Speaker 8: We're doing it because of the structures that are being

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Speaker 8: taken away from us by those in power.

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Speaker 7: But following the allegations, support from fellow Democrats collapsed. A

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Speaker 7: crucial race for the party is now in turmoil. The

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Speaker 7: main Democratic Party is going to hold a nominating convention

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Speaker 7: to choose a new nominee. The process to replace a

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Speaker 7: Platner needs to play out before a July twenty seventh deadline.

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Speaker 7: The race to try and defeat Republican Senator Susan Collins

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Speaker 7: is considered a must win seat and they find to

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Speaker 7: take back the chamber. If Democrats lose main their path

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Speaker 7: to the majority is far more difficult. I'm John Tucker, Bloomberg.

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Speaker 3: Radio, Right, John, thank you. We turned to the markets now.

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Speaker 3: Future is rebounding after yesterday's losses on Wall Street. The

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Speaker 3: S and P, which was down more than one percent yesterday,

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Speaker 3: closed down just three tenths of a percent. The now

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Speaker 3: dropped five hundred and seventy seven points, or more than

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Speaker 3: one percent. The NASDAK closed the session up two tenths

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Speaker 3: of up percent. Right now, Nasdaq futures are leading the

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Speaker 3: way higher. They are up six tenths of percent.

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Speaker 2: And on the economic front, In minutes released from the

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Speaker 2: Federal Reserves June meeting, the first under chair Kevin Warsh,

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Speaker 2: a few officials said there was a case for raising

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Speaker 2: interest rates. They ultimately supported the decision to leave rates

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Speaker 2: on hold. We get more on the minutes from Tyler

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Speaker 2: Kendall in Washington.

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Speaker 9: The minutes tell us that the discussion really centered around

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Speaker 9: inflation risks and restoring price stability. Writing in part quote,

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Speaker 9: participants judged that the risks to the inflation out or

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Speaker 9: outlook were tilted to the upside. That they observed that

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Speaker 9: both core and total inflation had moved higher. Generally attributed

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Speaker 9: to the increases to the lingering effects of tariffs, supply

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Speaker 9: chain disruptions, and the related to the closure of the

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Speaker 9: Strait of.

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Speaker 2: Removes Bloomberg Tyler Kendall's as policymakers will next look to

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Speaker 2: the release of June consumer price data on Tuesday.

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Speaker 3: In company news, Alexis traders are looking forward to the

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Speaker 3: US debut of sk Heinex, which is expected on Friday.

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Speaker 3: Right now, demand for the South Korean based memory chip

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Speaker 3: maker and the US is strong. The listing is more

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Speaker 3: than seven times oversubscribed and is currently on track with

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Speaker 3: the largest US debut for a foreign company.

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Speaker 2: And in Europe, shares of Astra Zeneca are plunging nine percent.

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Speaker 2: Its gene silencer drug fail to help prevent heart problems

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Speaker 2: and patients with a rare and potentially fatal disease of

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Speaker 2: the organ. Astra is looking to establish itself in the

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Speaker 2: disease area, where the market for therapies is expected to

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Speaker 2: be worth eighteen billion dollars by twenty thirty.

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Speaker 3: If you collect luxury watches Alexis now may be a

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Speaker 3: good time to get it deal on a used Rolex

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Speaker 3: Snake Grona Oysterflex watch, especially if you can find it

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Speaker 3: in yellow gold. The price of that model has dropped

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Speaker 3: four percent since April, according to the Bloomberg Subdial indexmemmoring

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Speaker 3: a slump in the precious metal that began with the

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Speaker 3: war in Iran. The value of the top ten watches

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Speaker 3: has risen by just over two percent since April, suggesting

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Speaker 3: that iconic brands and historic models are driving the market all.

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Speaker 2: Right, well, well, watches may be at a discount, Karen.

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Speaker 2: Wealthier Americans are cutting back on back to school spending.

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Speaker 2: According to a Deloitte survey of families in late May,

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Speaker 2: a majority of those making more than two hundred thousand

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Speaker 2: dollars a year say they plan to spend twenty percent

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Speaker 2: less than they did in twenty twenty five. On the

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Speaker 2: other end of the spectrum, families earning less than one

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Speaker 2: hundred thousand dollars a year expect to spend more, mostly

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Speaker 2: due to higher prices. Time now for a look at

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Speaker 2: some of the other stories making news in New York

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Speaker 2: and around the world. For that, we are joined by

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Speaker 2: Bloomberg's Michael Barr. Good Morning, Michael, Good Morning.

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Speaker 8: Excess, the developer behind the Midtown Manhattan tower that was

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Speaker 8: evacuated Tuesday over structural concerns, says it has a plan

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Speaker 8: to fix the issue, including reconstructing fifteen floors that were

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Speaker 8: added to the original building as part of its conversion

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Speaker 8: into apartments. Metro Loft CEO Nathan Berman says the issue

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Speaker 8: was caused by two columns that weren't sufficiently reinforced, leading

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Speaker 8: them to bend and causing some of the floors above

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Speaker 8: to sag. New York Mayor zoram Mmdani is promising a

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Speaker 8: full investigation.

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Speaker 6: As soon as we answer the emergency questions around safety

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Speaker 6: in this moment.

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Speaker 10: We are going to be conducting.

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Speaker 6: A full investigation as to how we got to this point.

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Speaker 8: Officials say the building is now stable. A federal judge

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Speaker 8: as rule that New York writer E. Gene Carroll can

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Speaker 8: collect five point eight million dollars held in escrow since

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Speaker 8: a jury found that President Trump sexually abused and defamed her.

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Speaker 8: The US Supreme Court recently upheld the twenty twenty three

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Speaker 8: civil verdict against President Trump in the case, allowing the

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Speaker 8: judge to release the money. President Trump's lawyers appealed, but

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Speaker 8: it was denied in an emergency order to block the

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Speaker 8: payment from being made. A jury found President Trump sexually

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Speaker 8: abused Carol in nineteen ninety six and then defamed her.

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Speaker 8: In twenty twenty two, a federal judge fined former Wisconsin

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Speaker 8: judge Hannah Dugan five thousand dollars and cited her, but

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Speaker 8: spared the sixty seven year old prison time for helping

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Speaker 8: a Mexican defendant out of her courtroom to evade ice agents.

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Speaker 8: Dugan's lawyer Jason Lusak, he certainly made the right call

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Speaker 8: and not sensu sing Judge Dugan im prison She's lost

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Speaker 8: so much throughout this process. Dugan stepped down from the

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Speaker 8: Milwaukee County Circuit judge ship she had held for nine

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Speaker 8: years amid threats of impeachment from Republican state lawmakers. Global

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Speaker 8: News twenty four hours a day and whenever you want

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Speaker 8: it with Bloomberg News. Now him Michael Barran, This is.

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Speaker 2: Bloomberg Alexis all right, Thanks Michael, Thanks Michael.

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Speaker 3: Time now for our Bloomberg Sports Update, and for that

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Speaker 3: we bring in John Stafshauer.

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Speaker 10: Thanks Darren. They didn't play in the World Cup yesterday.

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Speaker 10: They're back today with the start of the quarterfinals, a

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Speaker 10: game in Foxboro between France and Morocco. Also today the

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Speaker 10: women's semifinals at Wimbledon. Coco Golf has won four straight

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Speaker 10: three set matches. She's got a match with Carolina on Jovah.

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Speaker 10: Linda Maskova will take on Marta Kostiek. The Yankee slump continues.

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Speaker 10: They got shut out at Tampa Bay, lost three to nothing,

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Speaker 10: but the Yanks have lost eleven or last thirteen and

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Speaker 10: are now five games behind the Rays. That's to Bloomberg

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Speaker 10: Sports Update.

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Speaker 2: Stay with us. More from Bloomberg Daybreak coming up after.

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

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

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Speaker 1: Bloomberg Business opp This is Bloomberg Daybreak.

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Speaker 3: The US military struck iron for a second day in Toron,

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Speaker 3: retaliated against American allies in the Persian Gulf, raising fears

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Speaker 3: that the Titford tad attacks may derail talks on a

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Speaker 3: permanent peace deal. Speaking on Air Force One on the

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Speaker 3: way home from the NATO summit in Turkey, the President

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Speaker 3: said he's not sure if this means the US and

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Speaker 3: Iran will return to a full scale war.

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Speaker 4: We have any ways we could win, but we've already

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Speaker 4: won militarily. Take e very little, never little left. And

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Speaker 4: they want to make a deal so badly. They called

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Speaker 4: a little while ago. They want to make it deal

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Speaker 4: so badly.

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Speaker 3: And we're joined now by Abir abu Omar, a Bloomberg

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Speaker 3: Middle East reporter. Abir, thanks for being here. Get us

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Speaker 3: up to date. Please, what's the latest on the fighting

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Speaker 3: with Iran.

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Speaker 11: Yeah, good morning, Karen. Look what we're seeing right now

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Speaker 11: is a muted reaction.

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Speaker 8: Really.

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Speaker 11: The retaliation by Iran has been hitting countries in the

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Speaker 11: GCC that includes Bahinan and kuwaitin earlier saying that intercepted

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Speaker 11: missiles out of Iran. Kuwait saying similar things as well

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Speaker 11: about attacks that have happened overnight into the early hours

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Speaker 11: of the morning that have affected some infrastructure there. Iran

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Speaker 11: also saying that the attacks by the United States on

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Speaker 11: the country have been have killed over a dozen people,

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Speaker 11: injured some seventy eight people or so, and then that

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Speaker 11: they affected some bridges in the eastern side of the country. Now,

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Speaker 11: the reason I say these are muted reactions is because

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Speaker 11: this is not dissimilar from actions that we've seen over

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Speaker 11: the past couple of months or so, with Iron starting

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Speaker 11: by attacking ships in the Strait of Hermus and then

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Speaker 11: the US retaliating. Now, what we know from President Trump

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Speaker 11: is that he said yesterday at the NATO summit in Ankara, Turkey,

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Speaker 11: is that according to him, or as far as he's concerned,

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Speaker 11: ceasefire talks are over. But then in his own narrative

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Speaker 11: and his own remarks. He said, but the negotiators, namely

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Speaker 11: Jared Kushner and Steve Woodcoff, can go on and continue

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Speaker 11: those talks, and so we're seeing the back and forth

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Speaker 11: in his own narrative, in his own remarks, and this

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Speaker 11: all suggests that we might see a return to an

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Speaker 11: escalation that certainly feels like it's been the case over

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Speaker 11: the past couple of days. But neither the market nor

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Speaker 11: a lot of people on the ground seem to think

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Speaker 11: that we're gonna go back to a state of kinetic

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Speaker 11: warfare that we saw back in March, where the entire

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Speaker 11: region is dragged into it. And that is why you're

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Speaker 11: seeing Brent crude and y Crude is well reversing gains

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Speaker 11: earlier in the session. So escalation foreshore. This is the

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Speaker 11: most serious escalation since the MU was reached in June.

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Speaker 11: But we keep an eye out on the situation and

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Speaker 11: the standstill of the movement in the strait of her moves.

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Speaker 11: That's also another very important element here, straight of her

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Speaker 11: moves and the assertion of dominance of Iran on the waterway.

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Speaker 11: We keep an eye out on that and whether those

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Speaker 11: shipments and ship owners return to making their movement through

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Speaker 11: the waterway.

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Speaker 3: Yeah, because this latest fighting has cut traffic and the

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Speaker 3: Strait of War moves. As you said, it has pretty

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Speaker 3: much come to us standstill for the moment, at least today.

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Speaker 3: So it sounds like ships are no longer getting through.

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Speaker 3: So if the fighting well continues to escalate, that will

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Speaker 3: certainly upset President and I would imagine it would continue

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Speaker 3: to fuel any kind of retaliations.

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Speaker 11: Absolutely, and I mean this is exactly what Iran has

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Speaker 11: woken up to, right the fact that they have this

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Speaker 11: much leverage over the Strait of Her Moves. Look, perhaps

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Speaker 11: they already had known that they could have this much leverage,

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Speaker 11: but the fact that they're using it just shows you

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Speaker 11: that in the Middle East right now, it looks like

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Speaker 11: the paradigm of how things are going to be done,

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Speaker 11: especially in the Strait of Her Moves, may change forever.

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Speaker 11: This might be the new reality, not just Her Mooves

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Speaker 11: telling ships and ship not just Iran excuse me, telling

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Speaker 11: ships and ship owners to stick to roots that it

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Speaker 11: had laid out, but also possibly once the negotiation period

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Speaker 11: is over, Iran says and is adamant on the fact

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Speaker 11: that it will start charging tolls and fees to those

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Speaker 11: tankers that are making their way through the strait of

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Speaker 11: her moves. And not only with this upset the US

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Speaker 11: and President Trump, but also countries in the GCC that

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Speaker 11: depend on the strait of her moves, and this is

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Speaker 11: why you're seeing the UAE Saudi Arabia doubling down on

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Speaker 11: other roots. For the time being, we're still seeing Brent

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Speaker 11: below the eighty dollars per baron mark. So that's, you know,

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Speaker 11: possibly good news for President Trump and his coming term

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Speaker 11: elections in November, but still it's it's definitely it does

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Speaker 11: feel like there's a new reality at playing here and

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Speaker 11: that is something that Iron is aware of.

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