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

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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

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Speaker 3: Karen, we begin with the latest on the war where Iran,

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Speaker 3: now into its twenty fourth day, Tehran has been carrying

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Speaker 3: out fresh waves of attacks across the Persian Gulf after

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Speaker 3: President Trump issued a deadline on social media over the

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Speaker 3: weekend to reopen the strait of horror moves. We get

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Speaker 3: the very latest from Bloomberg's Jumana Borsecci in Dubai.

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Speaker 4: He's basically given Iran a forty eight hour ultimatum to

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Speaker 4: reopen the streets without threats or else. He says, the

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Speaker 4: US will hit and obliterate various power plants, starting with

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Speaker 4: the biggest one. First, that Iran has around one hundred

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Speaker 4: power plants that they're sitting on that could potentially be targets. Now, Iran,

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Speaker 4: we're quick to retaliate as ever, and they said that

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Speaker 4: if that does happen, and if civilian infrastructure targeted, then

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Speaker 4: they in turn will strike back on all energy, information, technology,

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Speaker 4: and desalination infrastructure linked to the US and Israel in

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Speaker 4: the region.

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Speaker 3: And Bloomberg's Jumanni Burssetti reports this morning Iran is threatening

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Speaker 3: to mine the entire Persian Gulf if the US or

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Speaker 3: Israel attack its islands or coastline.

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Speaker 5: Nathan.

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Speaker 2: Israel meanwhile, has been carrying out new waves of air

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Speaker 2: strikes on infrastructure in Tehran. Defense Minister Israel Cant says

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Speaker 2: the intensity of US and Israeli attacks will increase significantly

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Speaker 2: in the coming week, and we get that part of

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Speaker 2: the story from Bloomberg's Dan Williams in Jerusalem.

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Speaker 5: The public commentary has been abuiliant, almost triumphalists, especially when

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Speaker 5: it comes to the Israeli Defense Minister devowing stepped up

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Speaker 5: strikes on this the fourth week of the war. Nonetheless,

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Speaker 5: perhaps more quietly, officials in noting that the Iranians have managed,

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Speaker 5: despite a drop off in missile strikes overall during the

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Speaker 5: third week of the war, to pick them up over

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Speaker 5: the weekend, specifically with two missile attacks. Two missile that

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Speaker 5: managed to reach that targets towns in the south of Israel,

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Speaker 5: and more than one hundred people civilians were wounded over

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Speaker 5: the weekend.

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Speaker 2: And that's Bloomberg's Dan Williams who reports Iran is claiming

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Speaker 2: that attack in the southern cities of Irod and Demona

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Speaker 2: was in retaliation for a strike, and it's net Town's

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Speaker 2: nuclear facility.

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Speaker 3: And Karen the White House is defending the stepped up attacks.

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Speaker 3: Treasury Secretary Scott Besson says President Trump will take whatever

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Speaker 3: steps are needed to deny Iran the ability to project

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Speaker 3: power internationally.

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Speaker 6: Every day we are taking out their missiles, their missile systems,

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Speaker 6: and the factories that build those missiles. And now are

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Speaker 6: the General Kine Secretary Headsith are leading a campaign to

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Speaker 6: destroy all the fortifications along the Straits of Formost.

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Speaker 3: Treasury Secretary Scott Bessett appeared on NBC's Meet the Press

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Speaker 3: Heard Sundays on Bloomberg Radio. But Eurasia Group President Ian

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Speaker 3: Bremer says a prolonged war is not priced into the

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Speaker 3: markets yet.

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Speaker 7: This Iranian regime, if they wish, are going to be

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Speaker 7: capable of continuing to pose threats to anything that goes

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Speaker 7: through the Strait and to ongoing production and capability of

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Speaker 7: golf energy infrastructure.

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Speaker 3: So yeah, the Golf.

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Speaker 7: Is concerned about that, and they don't want the United

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Speaker 7: States to stop now having started the war, until that

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Speaker 7: is resolved in some way.

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Speaker 3: Eurasia Group President Ian Bremer was a guest on Bloomberg

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Speaker 3: This Weekend, airing every Saturday and Sunday at seven am

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Speaker 3: Eastern on Bloomberg Radio and Television and the Bloomberg Business App.

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Speaker 2: Well, Nathan, we are seeing major moves in the markets

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Speaker 2: as President Trump's deadline approaches. Right now, S and P

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Speaker 2: futures are down seven tenths of up percent. Stocks in Japan, China,

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Speaker 2: and Hong Kong fell more than three percent. South Korea's

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Speaker 2: Cosby plunged more than six percent. Despite today's sell off,

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Speaker 2: Bloomberg Markets Alive Executive editor Mark Hudmore says investors are

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Speaker 2: not fully pricing in the Middle East war.

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Speaker 8: The market continues to be far too optimistic because they're

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Speaker 8: focused on the fact that we always get a Trump taco,

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Speaker 8: you know. Geopolitical risk in the Middle East is always

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Speaker 8: a fade. We've got the mid terms come ups. The

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Speaker 8: US doesn't have any incent to continue going. They're all

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Speaker 8: based on the idea that the US has near unilateral

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Speaker 8: control over the conflict, which is not the case at all.

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Speaker 8: In fact, as Trump's threatened, the Weekend implicitly accepts it

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Speaker 8: is Iran who controls the stread of remoss and when

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Speaker 8: it will reopen.

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Speaker 2: And Bloomer's Mark Cudmore also noted precious metals are getting

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Speaker 2: hit today. Checking gold right now, Comas gold is down

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Speaker 2: seven percent, Spots silver is down almost six percent.

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Speaker 3: And global bond yields have risen to their highest levels

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Speaker 3: in almost two years.

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Speaker 2: Karen.

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Speaker 3: Here, in the US, yields are at their highest in

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Speaker 3: months on speculation the Federal Reserve may raise borrowing costs

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Speaker 3: to combat inflation. The specter of stagflation caused by the

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Speaker 3: Iran war has wiped out more than two and a

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Speaker 3: half trillion dollars from the value of global bonds this month.

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Speaker 2: Oil on to move again. It's higher and at checking

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Speaker 2: prices right now nim scrude oil up nine tenths of

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Speaker 2: percent at ninety nine dollars seven cents a barrel, while

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Speaker 2: Brent is at one hundred and thirteen dollars. The International

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Speaker 2: Energy Agency says more than three dozen assets in the

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Speaker 2: Middle East have suffered extensive damage. Here's Ia, Executive director

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Speaker 2: of fanti UROL.

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Speaker 9: We are following the damage on all the energy assets.

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Speaker 9: At least forty for zero energy sts in this region

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Speaker 9: are severely or very severely damaged across nine countries.

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Speaker 2: An Ia, executive director of Fanti Barrel says, in addition

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Speaker 2: to oil and gas, some of the vital arteries of

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Speaker 2: the global economy, such as petrochemicals, fertilizers and sulfur have

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Speaker 2: also been impacted.

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Speaker 3: Then, Karen, the CEO of one of the world's biggest

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Speaker 3: bank says, energy prices are likely to remain elevated. We

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Speaker 3: spoke with UBS Banking boss Sergio or Madi.

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Speaker 10: Energy prices are likely to stay high for the foreseeable future,

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Speaker 10: put in some inflation pressure and also some pressure on

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Speaker 10: the delivery chain or on the supply chain.

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Speaker 3: Ub As CEO Sergiyo or Madi says so far his

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Speaker 3: firm's customers are not making dramatic changes to asset allocation

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Speaker 3: as a result of the war.

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Speaker 2: Nathan, UK Prime Minister here Starmer will hold an emergency

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Speaker 2: meeting with his top ministers on the Iran crisis, and

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Speaker 2: we go to London and get the very latest of

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Speaker 2: Bloomberg's James Wilcock, James, good morning.

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Speaker 11: Good morning, Karen, Nathan UK. Gilt leals are hitting highs

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Speaker 11: not seen since two thousand and eight. Energy prices are

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Speaker 11: forecast to rise as much as twenty percent, and over

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Speaker 11: the weekend a UK military base was targeted by Iranian missiles.

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Speaker 11: Prime Minister Kissed Darma meets with the Bank of England

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Speaker 11: governor and other top officials later for crisis talks on

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Speaker 11: what can Britain do. He's been clear the UK does

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Speaker 11: not want to get drawn into the war in the

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Speaker 11: Middle East, but the economic consequence and says already on

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Speaker 11: Britain shows in London, James will Cook Blimberg Radier.

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Speaker 3: Okay, James, thanks for also following and developing storyback on

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Speaker 3: this side of the Atlantic. Authority say an Air Canada

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Speaker 3: flight collided with a Port Authority vehicle at New York's

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Speaker 3: LaGuardia Airport. The Air Canada Express plane from Montreal had

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Speaker 3: seventy six people on board. The Port Authority has confirmed

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Speaker 3: now the pilot and co pilot died in this collision.

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Speaker 3: The National Transportation Safety Board is launching a team to

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Speaker 3: investigate today, and a notice has been issued by the

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Speaker 3: Federal Aviation Administration that airport operations at LaGuardia will remain

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Speaker 3: suspended until at least two o'clock this afternoon.

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Speaker 2: Well Nathan, President Trump says ICE agents will be going

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Speaker 2: to airports today. As Congress continues debating a funding plan

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Speaker 2: for homeland security, the President named White House Borders Our

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Speaker 2: Tom Homan to lead the effort.

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Speaker 12: We're simply there to help TSA do their job in

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Speaker 12: areas that don't need their specialized expertise, such as you know,

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Speaker 12: screening through the X ray machine, not train that we

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Speaker 12: won't do that. Whether there are roles we can play

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Speaker 12: to release TSA officers from the non significant roles such

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Speaker 12: as guarding an exit so they can get back to

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Speaker 12: the scanning machines and move people quicker and Wright.

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Speaker 2: How sports our Tom Homan made the comments on CNN.

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Speaker 2: Hundreds of thousands of Homeland Security workers, including from the TSA,

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Speaker 2: Secret Service and Coastguard, have worked without pay since Congress

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Speaker 2: failed to renew DHS funding last month. Time Now for

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Speaker 2: look at some of their stories making news in New

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Speaker 2: York and around the world, and for that we're joined

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Speaker 2: by Bloomberg's John Tucker. John, good morning, and good morning, Caaron.

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Speaker 13: The US Supreme Court today will consider a case that

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Speaker 13: could up end key election deadlines in as many as

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Speaker 13: twenty nine states have drawn justices in the President Trump's

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Speaker 13: campaign against mail in ballots. Let's get more from Bloomberg's

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Speaker 13: Monica Ricks.

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Speaker 14: The case involves the Mississippi law that allows ballots to

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Speaker 14: be counted if they arrived shortly after election day, which

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Speaker 14: the Republican Party and the Trump administration say is incompatible

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Speaker 14: with federal law. This is part of a prolonged effort

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Speaker 14: by the GOP to keep control of Congress in November,

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Speaker 14: but critics say it would lead to chaos, including different

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Speaker 14: deadlines for congressional and presidential elections than for state and

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Speaker 14: local races. It could also suppress the votes of people

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Speaker 14: likely to support Democrats Monica Rix Bloomberg Radio.

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Speaker 13: Republican Senator Mark Wayne Mullen advanced toward confirmation as Secretary

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Speaker 13: of the Department of Homeland Security. It cleared a procedural

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Speaker 13: obstacle Sunday that put his nomination on track for a

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Speaker 13: final Senate vote earlier this week. The fifty forty thirty

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Speaker 13: seven vote signals the forty eight year old first term

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Speaker 13: Oklahoma senator, a former mixed martial arts fighter, a sufficient

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Speaker 13: support to be installed as leader of the Department. A

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Speaker 13: senior Cuban official said the country is preparing for a

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Speaker 13: possible military assault as President Trump increases economic pressure on

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Speaker 13: the government in Havana. The Deputy Foreign Minister Carlos Fernandez

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Speaker 13: to Cassio suggested in an interview on NBC's Meet the Press,

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Speaker 13: Cuba could be the next US target after Venezuela and Iran,

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Speaker 13: and London's Metropolitan Police have launched an investigation after four

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Speaker 13: ambulances belonging to the Jewish Community Ambulance Service we're sent

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Speaker 13: on fire in North London, Please said they're looking for

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Speaker 13: three suspects, though no arrests have been made. Global News

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Speaker 13: twenty four hours a day and whenever you want it

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Speaker 13: with Bloomberg Newsdal I'm John Tucker and this is Bloomberg Karen.

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Speaker 2: All right, John, thank you time now for our Bloomberg

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Speaker 2: Sports update, and for that you bring in John stash Hour.

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Speaker 13: Thanks Karen.

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Speaker 15: The NCAA tournament down to the sweet sixteen. The only

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Speaker 15: one or two seed no longer in the attorney last

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Speaker 15: year's national champions, the Florida Gators. They lost to Iowa

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Speaker 15: seventy three seventy two the Hawkeys. Alvaro Valgaris hit a

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Speaker 15: three pointer with four point five seconds left, a buzzer

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Speaker 15: beater for Saint John's Dylan Darnley the only points of

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Speaker 15: the game, and the Red Storm beat Kansas by two

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Speaker 15: to advance to the Sweet sixteen. Syracuse on the verge

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Speaker 15: of hiring a new coach Jerry McNamara. That to Bloomber

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Speaker 15: Sports Update.

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

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

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

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Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 3: Good morning, I'm Nathan Hager. On day twenty four, the

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Speaker 3: US Israeli war with Iran, attacks and rhetoric are ramping

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Speaker 3: up once again head of President Donald Trump's forty eight

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Speaker 3: hour ultimatum to reopen the strait of hormones or risk

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Speaker 3: attacks on Iranian power plants. Treasury Secretary Scott Bessant was

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Speaker 3: asked how that squares with the President's talk of winding

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Speaker 3: down the conflict.

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Speaker 6: They're not mutually exclusive. Sometimes you have to escalate, Todascali.

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Speaker 3: That was Treasury Secretary Scott Bessant on NBC's Meet the Press,

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Speaker 3: heard Sundays on Bloomberg Radio. This morning, We're joined from

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Speaker 3: Dubai by Bloomberg Horizons anchor Jumani Bursecci and with us

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Speaker 3: this morning from Tel Aviv is Bloomberg News Israel Bureau

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Speaker 3: chief Ethan Bronner. Thanks to both of you for being

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Speaker 3: with us, and Jumana, I'll start with you just to

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Speaker 3: get us caught up with the latest on what is

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Speaker 3: happening in the Middle East, as it does sound like

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Speaker 3: the rhetoric certainly is ramping up along with the action.

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Speaker 3: Good morning, Good morning.

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Speaker 4: Yes, well, you just played some sound there from the

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Speaker 4: US Treasury Secretary squad Vessine, who is saying that it

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Speaker 4: may be necessary to escalate in order to de escalate,

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Speaker 4: and I should just caveat the ultimatum that President Trump

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Speaker 4: gave to the Iranians, with the fact that a few

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Speaker 4: hours before he'd said that they were thinking of winding

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Speaker 4: down some of their military operations in the region. So

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Speaker 4: there's a bit of a mixed messaging coming through from

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Speaker 4: the White House. That being said, the ultimatum that came

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Speaker 4: through at around seven forty four pm Eastern Time on Saturday, relevance,

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Speaker 4: of course, given the forty eight to hour deadline, is

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Speaker 4: to Iran to reopen the street without threats and if

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Speaker 4: not the US will hit and obliterate their various power plants,

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Speaker 4: starting with the biggest one first. So that's what he

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Speaker 4: put up in his truth social posts. But of course

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Speaker 4: the Iranians were quick to respond and they said that

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Speaker 4: the strait will remain completely shut and that if the

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Speaker 4: US were to go down the route of targeting their

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Speaker 4: power plants, they would strike back. They would target all energy,

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Speaker 4: information technology, and desalination infrastructure. They followed that up with

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Speaker 4: some comments put forward by the head of the parliament,

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Speaker 4: the Speaker of the Parliament, and he added that headquarters

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Speaker 4: and assets of financial entities that by US Treasury bones

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Speaker 4: are also legitimate targets. And then a couple of hours

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Speaker 4: ago we also got more rhetoric coming through from the

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Speaker 4: country's National Defense Council, also putting out a statement saying

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Speaker 4: that they're looking to not just mine around the Strait

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Speaker 4: of Hormos, but around the entire Persian Gulf. So you

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Speaker 4: can see that there is a lot of rhetoric coming

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Speaker 4: back through from the Iranians. The big question I think

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Speaker 4: over the next twenty four hours is whether the US

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Speaker 4: actually follows through on this threat, and equally, whether Iran

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Speaker 4: in turn will follow through on their own threat, which

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Speaker 4: is to strike at some of these key strategic sites.

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Speaker 4: And I will say, you know, the water, the desalination

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Speaker 4: infrastructure would take this war to get another statusphere because

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Speaker 4: so many countries in the region rely on the salinated water.

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Speaker 12: Well.

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Speaker 3: Alongside the threats from the US side Ethan, of course,

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Speaker 3: we're hearing reports as well that Israel is ramping up

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Speaker 3: its own attacks on Tehran. What's the latest from your perspective.

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Speaker 16: Yeah, look, I mean, I think Jamonis said it up

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Speaker 16: very very well. The Israeli is definitely flying over and

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Speaker 16: attacking Iran again. And my distinct impression is whether or

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Speaker 16: not there is a specific forty eight hour deadline that's

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Speaker 16: going to end in the next fifteen hours or so.

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Speaker 16: From the reporting I've been able to do in Israel,

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Speaker 16: the Americans are planning a fairly extensive operation to retake

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Speaker 16: the straight up war moves from Iran. It's going to

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Speaker 16: take some weeks. That's the message they're sending the Israelis,

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Speaker 16: and that's the idea that this war has been kind

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Speaker 16: of driven by Israel. Whether or not that was true

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Speaker 16: to begin with, is I think shifting now and it

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Speaker 16: is now the US that's getting out front with the attacks.

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Speaker 3: That raises the question of whether the US is preparing

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Speaker 3: for a ground operation to retake the Strait of Horror

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Speaker 3: moves and how Iran might respond to that. Jumana, what's

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Speaker 3: the perspective there?

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Speaker 4: Yeah, Well, our own reporting suggests that the US is

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Speaker 4: weighing off the possibility of taking over Kark Island. And

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Speaker 4: I should just mention for anyone not familiar with the

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Speaker 4: geography that Kark Island is a lot more north than

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Speaker 4: the Strait of Hormus. To actually get to Krk Islands,

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Speaker 4: you need to pass through the strait if you're sending

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Speaker 4: amphibious vessels to that part of the region. But that aside,

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Speaker 4: that would you know, as Ethan just spoke about and

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Speaker 4: imply yet another level of escalation in this conflict, because

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Speaker 4: also alongside that reports that the US are also planning

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Speaker 4: on sending around two and a half thousand, possibly three

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Speaker 4: thousand Marines i e. Ground troops to the region as well,

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Speaker 4: which would imply that what they are attempting to do

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Speaker 4: here is twofold. There are two objectives the ongoing military operations,

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Speaker 4: the airstrikes that are targeting Iran's both offensive and defensive capabilities,

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Speaker 4: but alongside that looking at ways to forcefully reopen the strait,

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Speaker 4: and from what we understand from our own reporting, it

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Speaker 4: will take them a couple of weeks to degrade Iran's

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Speaker 4: offensive capability sufficiently so that once the Marines and the

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Speaker 4: extra ar Mada that arise to the region gets there,

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Speaker 4: it won't be as exposed to as much of a

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Speaker 4: risk as it would be if, say they were arrived

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Speaker 4: were to arrive today.

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Speaker 13: Ethan.

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Speaker 3: There's certainly a lot of attention right now on this

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Speaker 3: ultimatum from the President over the weekend for Iran to

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Speaker 3: reopen the straight At this point, does it seem as

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Speaker 3: though the US goals in Iran are aligned with what

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Speaker 3: Israel is putting forward right now?

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Speaker 16: I don't see a huge gap. I mean, I you know,

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Speaker 16: what's clear is that assuring freedom of navigation through horror

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Speaker 16: moves is a much bigger American goal than an Israeli goal.

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Speaker 16: So the Israelis have set for themselves three goals here

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Speaker 16: the nuclear, the ballistic, and the proxies and making sure

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Speaker 16: that around can't be a threat again to it. I

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Speaker 16: think that there is I can't say that the Israelis

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Speaker 16: are unhappy with an approach to the Strait of Horm moves,

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Speaker 16: although there is some chatter in Israel which says, you know,

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Speaker 16: that's taking us somewhere else. Let's stay focused on our

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Speaker 16: the goals that we've set for ourselves here. But you know,

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Speaker 16: I think the Israelis are so grateful and so amazed

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Speaker 16: to have lockstep US military operation against Iran that there's

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Speaker 16: very little carping underway. And I don't you know, I

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Speaker 16: really don't see a lot of daylight there. I see

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Speaker 16: an enormous amount of cooperation.

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Speaker 3: We're speaking with Ethan Bronner, our Israel bureau chief for

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Speaker 3: Bloomberg News in Tel Aviv, and Bloomberg Horizons anchor juman

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Speaker 3: and Borsecci with us this morning from Dubai. Jumana. We

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Speaker 3: heard over the weekend from Treasury Secretary bess And that

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Speaker 3: the goal, as far as the US strikes in the

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Speaker 3: Strait of Horror moves is to degrade Iran's fortifications around

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Speaker 3: the Strait, seeming to be specifically focused on that choke point.

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Speaker 3: Does Iran continue to have control over the Strait at

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Speaker 3: this point?

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Speaker 4: Yeah, So this is the thing. So the Iranians maintained

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Speaker 4: that the street is not closed, but it is effectively

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Speaker 4: closed because it's under Iranian control. And we've been reporting

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Speaker 4: our energy colleagues have been reporting over the last week

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Speaker 4: that a certain number of vessels have trickled through the strait,

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Speaker 4: but most of them are Iranian aligned or headed towards

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Speaker 4: strategic buyers for Iran, so towards China or India or Pakistan.

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Speaker 4: But they would have received pre approval from the Iranians

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Speaker 4: to get through the straits, So ultimately, you know, they're

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Speaker 4: still effectively controlling who passes through, and they've spoken about

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Speaker 4: one of their conditions to come back to the negotiating

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Speaker 4: table is to discuss the future of the Straits and

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Speaker 4: perhaps introducing a new policy or framework by which vessels

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Speaker 4: can pass through. Obviously, you know, having Iran maintain control

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Speaker 4: over it is not something that's acceptable mostly to Golf

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Speaker 4: States as well, given the line's share of their own

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Speaker 4: oil products passed through the straits, and it's something I

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Speaker 4: also think that means, you know, from the Golf States perspective,

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Speaker 4: they want to ensure looking ahead that once this war

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Speaker 4: is over, we do end up in a circumstance where

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Speaker 4: the Strait is not effectively still controlled by Iran, that

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Speaker 4: they're aill can flow through it without being administered by

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Speaker 4: Iranian officials.

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