Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: Karen, we begin with the latest on the war where Iran,
Speaker 3: now into its twenty fourth day, Tehran has been carrying
Speaker 3: out fresh waves of attacks across the Persian Gulf after
Speaker 3: President Trump issued a deadline on social media over the
Speaker 3: weekend to reopen the strait of horror moves. We get
Speaker 3: the very latest from Bloomberg's Jumana Borsecci in Dubai.
Speaker 4: He's basically given Iran a forty eight hour ultimatum to
Speaker 4: reopen the streets without threats or else. He says, the
Speaker 4: US will hit and obliterate various power plants, starting with
Speaker 4: the biggest one. First, that Iran has around one hundred
Speaker 4: power plants that they're sitting on that could potentially be targets. Now, Iran,
Speaker 4: we're quick to retaliate as ever, and they said that
Speaker 4: if that does happen, and if civilian infrastructure targeted, then
Speaker 4: they in turn will strike back on all energy, information, technology,
Speaker 4: and desalination infrastructure linked to the US and Israel in
Speaker 4: the region.
Speaker 3: And Bloomberg's Jumanni Burssetti reports this morning Iran is threatening
Speaker 3: to mine the entire Persian Gulf if the US or
Speaker 3: Israel attack its islands or coastline.
Speaker 5: Nathan.
Speaker 2: Israel meanwhile, has been carrying out new waves of air
Speaker 2: strikes on infrastructure in Tehran. Defense Minister Israel Cant says
Speaker 2: the intensity of US and Israeli attacks will increase significantly
Speaker 2: in the coming week, and we get that part of
Speaker 2: the story from Bloomberg's Dan Williams in Jerusalem.
Speaker 5: The public commentary has been abuiliant, almost triumphalists, especially when
Speaker 5: it comes to the Israeli Defense Minister devowing stepped up
Speaker 5: strikes on this the fourth week of the war. Nonetheless,
Speaker 5: perhaps more quietly, officials in noting that the Iranians have managed,
Speaker 5: despite a drop off in missile strikes overall during the
Speaker 5: third week of the war, to pick them up over
Speaker 5: the weekend, specifically with two missile attacks. Two missile that
Speaker 5: managed to reach that targets towns in the south of Israel,
Speaker 5: and more than one hundred people civilians were wounded over
Speaker 5: the weekend.
Speaker 2: And that's Bloomberg's Dan Williams who reports Iran is claiming
Speaker 2: that attack in the southern cities of Irod and Demona
Speaker 2: was in retaliation for a strike, and it's net Town's
Speaker 2: nuclear facility.
Speaker 3: And Karen the White House is defending the stepped up attacks.
Speaker 3: Treasury Secretary Scott Besson says President Trump will take whatever
Speaker 3: steps are needed to deny Iran the ability to project
Speaker 3: power internationally.
Speaker 6: Every day we are taking out their missiles, their missile systems,
Speaker 6: and the factories that build those missiles. And now are
Speaker 6: the General Kine Secretary Headsith are leading a campaign to
Speaker 6: destroy all the fortifications along the Straits of Formost.
Speaker 3: Treasury Secretary Scott Bessett appeared on NBC's Meet the Press
Speaker 3: Heard Sundays on Bloomberg Radio. But Eurasia Group President Ian
Speaker 3: Bremer says a prolonged war is not priced into the
Speaker 3: markets yet.
Speaker 7: This Iranian regime, if they wish, are going to be
Speaker 7: capable of continuing to pose threats to anything that goes
Speaker 7: through the Strait and to ongoing production and capability of
Speaker 7: golf energy infrastructure.
Speaker 3: So yeah, the Golf.
Speaker 7: Is concerned about that, and they don't want the United
Speaker 7: States to stop now having started the war, until that
Speaker 7: is resolved in some way.
Speaker 3: Eurasia Group President Ian Bremer was a guest on Bloomberg
Speaker 3: This Weekend, airing every Saturday and Sunday at seven am
Speaker 3: Eastern on Bloomberg Radio and Television and the Bloomberg Business App.
Speaker 2: Well, Nathan, we are seeing major moves in the markets
Speaker 2: as President Trump's deadline approaches. Right now, S and P
Speaker 2: futures are down seven tenths of up percent. Stocks in Japan, China,
Speaker 2: and Hong Kong fell more than three percent. South Korea's
Speaker 2: Cosby plunged more than six percent. Despite today's sell off,
Speaker 2: Bloomberg Markets Alive Executive editor Mark Hudmore says investors are
Speaker 2: not fully pricing in the Middle East war.
Speaker 8: The market continues to be far too optimistic because they're
Speaker 8: focused on the fact that we always get a Trump taco,
Speaker 8: you know. Geopolitical risk in the Middle East is always
Speaker 8: a fade. We've got the mid terms come ups. The
Speaker 8: US doesn't have any incent to continue going. They're all
Speaker 8: based on the idea that the US has near unilateral
Speaker 8: control over the conflict, which is not the case at all.
Speaker 8: In fact, as Trump's threatened, the Weekend implicitly accepts it
Speaker 8: is Iran who controls the stread of remoss and when
Speaker 8: it will reopen.
Speaker 2: And Bloomer's Mark Cudmore also noted precious metals are getting
Speaker 2: hit today. Checking gold right now, Comas gold is down
Speaker 2: seven percent, Spots silver is down almost six percent.
Speaker 3: And global bond yields have risen to their highest levels
Speaker 3: in almost two years.
Speaker 2: Karen.
Speaker 3: Here, in the US, yields are at their highest in
Speaker 3: months on speculation the Federal Reserve may raise borrowing costs
Speaker 3: to combat inflation. The specter of stagflation caused by the
Speaker 3: Iran war has wiped out more than two and a
Speaker 3: half trillion dollars from the value of global bonds this month.
Speaker 2: Oil on to move again. It's higher and at checking
Speaker 2: prices right now nim scrude oil up nine tenths of
Speaker 2: percent at ninety nine dollars seven cents a barrel, while
Speaker 2: Brent is at one hundred and thirteen dollars. The International
Speaker 2: Energy Agency says more than three dozen assets in the
Speaker 2: Middle East have suffered extensive damage. Here's Ia, Executive director
Speaker 2: of fanti UROL.
Speaker 9: We are following the damage on all the energy assets.
Speaker 9: At least forty for zero energy sts in this region
Speaker 9: are severely or very severely damaged across nine countries.
Speaker 2: An Ia, executive director of Fanti Barrel says, in addition
Speaker 2: to oil and gas, some of the vital arteries of
Speaker 2: the global economy, such as petrochemicals, fertilizers and sulfur have
Speaker 2: also been impacted.
Speaker 3: Then, Karen, the CEO of one of the world's biggest
Speaker 3: bank says, energy prices are likely to remain elevated. We
Speaker 3: spoke with UBS Banking boss Sergio or Madi.
Speaker 10: Energy prices are likely to stay high for the foreseeable future,
Speaker 10: put in some inflation pressure and also some pressure on
Speaker 10: the delivery chain or on the supply chain.
Speaker 3: Ub As CEO Sergiyo or Madi says so far his
Speaker 3: firm's customers are not making dramatic changes to asset allocation
Speaker 3: as a result of the war.
Speaker 2: Nathan, UK Prime Minister here Starmer will hold an emergency
Speaker 2: meeting with his top ministers on the Iran crisis, and
Speaker 2: we go to London and get the very latest of
Speaker 2: Bloomberg's James Wilcock, James, good morning.
Speaker 11: Good morning, Karen, Nathan UK. Gilt leals are hitting highs
Speaker 11: not seen since two thousand and eight. Energy prices are
Speaker 11: forecast to rise as much as twenty percent, and over
Speaker 11: the weekend a UK military base was targeted by Iranian missiles.
Speaker 11: Prime Minister Kissed Darma meets with the Bank of England
Speaker 11: governor and other top officials later for crisis talks on
Speaker 11: what can Britain do. He's been clear the UK does
Speaker 11: not want to get drawn into the war in the
Speaker 11: Middle East, but the economic consequence and says already on
Speaker 11: Britain shows in London, James will Cook Blimberg Radier.
Speaker 3: Okay, James, thanks for also following and developing storyback on
Speaker 3: this side of the Atlantic. Authority say an Air Canada
Speaker 3: flight collided with a Port Authority vehicle at New York's
Speaker 3: LaGuardia Airport. The Air Canada Express plane from Montreal had
Speaker 3: seventy six people on board. The Port Authority has confirmed
Speaker 3: now the pilot and co pilot died in this collision.
Speaker 3: The National Transportation Safety Board is launching a team to
Speaker 3: investigate today, and a notice has been issued by the
Speaker 3: Federal Aviation Administration that airport operations at LaGuardia will remain
Speaker 3: suspended until at least two o'clock this afternoon.
Speaker 2: Well Nathan, President Trump says ICE agents will be going
Speaker 2: to airports today. As Congress continues debating a funding plan
Speaker 2: for homeland security, the President named White House Borders Our
Speaker 2: Tom Homan to lead the effort.
Speaker 12: We're simply there to help TSA do their job in
Speaker 12: areas that don't need their specialized expertise, such as you know,
Speaker 12: screening through the X ray machine, not train that we
Speaker 12: won't do that. Whether there are roles we can play
Speaker 12: to release TSA officers from the non significant roles such
Speaker 12: as guarding an exit so they can get back to
Speaker 12: the scanning machines and move people quicker and Wright.
Speaker 2: How sports our Tom Homan made the comments on CNN.
Speaker 2: Hundreds of thousands of Homeland Security workers, including from the TSA,
Speaker 2: Secret Service and Coastguard, have worked without pay since Congress
Speaker 2: failed to renew DHS funding last month. Time Now for
Speaker 2: look at some of their stories making news in New
Speaker 2: York and around the world, and for that we're joined
Speaker 2: by Bloomberg's John Tucker. John, good morning, and good morning, Caaron.
Speaker 13: The US Supreme Court today will consider a case that
Speaker 13: could up end key election deadlines in as many as
Speaker 13: twenty nine states have drawn justices in the President Trump's
Speaker 13: campaign against mail in ballots. Let's get more from Bloomberg's
Speaker 13: Monica Ricks.
Speaker 14: The case involves the Mississippi law that allows ballots to
Speaker 14: be counted if they arrived shortly after election day, which
Speaker 14: the Republican Party and the Trump administration say is incompatible
Speaker 14: with federal law. This is part of a prolonged effort
Speaker 14: by the GOP to keep control of Congress in November,
Speaker 14: but critics say it would lead to chaos, including different
Speaker 14: deadlines for congressional and presidential elections than for state and
Speaker 14: local races. It could also suppress the votes of people
Speaker 14: likely to support Democrats Monica Rix Bloomberg Radio.
Speaker 13: Republican Senator Mark Wayne Mullen advanced toward confirmation as Secretary
Speaker 13: of the Department of Homeland Security. It cleared a procedural
Speaker 13: obstacle Sunday that put his nomination on track for a
Speaker 13: final Senate vote earlier this week. The fifty forty thirty
Speaker 13: seven vote signals the forty eight year old first term
Speaker 13: Oklahoma senator, a former mixed martial arts fighter, a sufficient
Speaker 13: support to be installed as leader of the Department. A
Speaker 13: senior Cuban official said the country is preparing for a
Speaker 13: possible military assault as President Trump increases economic pressure on
Speaker 13: the government in Havana. The Deputy Foreign Minister Carlos Fernandez
Speaker 13: to Cassio suggested in an interview on NBC's Meet the Press,
Speaker 13: Cuba could be the next US target after Venezuela and Iran,
Speaker 13: and London's Metropolitan Police have launched an investigation after four
Speaker 13: ambulances belonging to the Jewish Community Ambulance Service we're sent
Speaker 13: on fire in North London, Please said they're looking for
Speaker 13: three suspects, though no arrests have been made. Global News
Speaker 13: twenty four hours a day and whenever you want it
Speaker 13: with Bloomberg Newsdal I'm John Tucker and this is Bloomberg Karen.
Speaker 2: All right, John, thank you time now for our Bloomberg
Speaker 2: Sports update, and for that you bring in John stash Hour.
Speaker 13: Thanks Karen.
Speaker 15: The NCAA tournament down to the sweet sixteen. The only
Speaker 15: one or two seed no longer in the attorney last
Speaker 15: year's national champions, the Florida Gators. They lost to Iowa
Speaker 15: seventy three seventy two the Hawkeys. Alvaro Valgaris hit a
Speaker 15: three pointer with four point five seconds left, a buzzer
Speaker 15: beater for Saint John's Dylan Darnley the only points of
Speaker 15: the game, and the Red Storm beat Kansas by two
Speaker 15: to advance to the Sweet sixteen. Syracuse on the verge
Speaker 15: of hiring a new coach Jerry McNamara. That to Bloomber
Speaker 15: Sports Update.
Speaker 2: Stay with us. More from Bloomberg Daybreak coming up after this.
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 1: and around the world on Bloomberg dot Com and the
Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 3: Good morning, I'm Nathan Hager. On day twenty four, the
Speaker 3: US Israeli war with Iran, attacks and rhetoric are ramping
Speaker 3: up once again head of President Donald Trump's forty eight
Speaker 3: hour ultimatum to reopen the strait of hormones or risk
Speaker 3: attacks on Iranian power plants. Treasury Secretary Scott Bessant was
Speaker 3: asked how that squares with the President's talk of winding
Speaker 3: down the conflict.
Speaker 6: They're not mutually exclusive. Sometimes you have to escalate, Todascali.
Speaker 3: That was Treasury Secretary Scott Bessant on NBC's Meet the Press,
Speaker 3: heard Sundays on Bloomberg Radio. This morning, We're joined from
Speaker 3: Dubai by Bloomberg Horizons anchor Jumani Bursecci and with us
Speaker 3: this morning from Tel Aviv is Bloomberg News Israel Bureau
Speaker 3: chief Ethan Bronner. Thanks to both of you for being
Speaker 3: with us, and Jumana, I'll start with you just to
Speaker 3: get us caught up with the latest on what is
Speaker 3: happening in the Middle East, as it does sound like
Speaker 3: the rhetoric certainly is ramping up along with the action.
Speaker 3: Good morning, Good morning.
Speaker 4: Yes, well, you just played some sound there from the
Speaker 4: US Treasury Secretary squad Vessine, who is saying that it
Speaker 4: may be necessary to escalate in order to de escalate,
Speaker 4: and I should just caveat the ultimatum that President Trump
Speaker 4: gave to the Iranians, with the fact that a few
Speaker 4: hours before he'd said that they were thinking of winding
Speaker 4: down some of their military operations in the region. So
Speaker 4: there's a bit of a mixed messaging coming through from
Speaker 4: the White House. That being said, the ultimatum that came
Speaker 4: through at around seven forty four pm Eastern Time on Saturday, relevance,
Speaker 4: of course, given the forty eight to hour deadline, is
Speaker 4: to Iran to reopen the street without threats and if
Speaker 4: not the US will hit and obliterate their various power plants,
Speaker 4: starting with the biggest one first. So that's what he
Speaker 4: put up in his truth social posts. But of course
Speaker 4: the Iranians were quick to respond and they said that
Speaker 4: the strait will remain completely shut and that if the
Speaker 4: US were to go down the route of targeting their
Speaker 4: power plants, they would strike back. They would target all energy,
Speaker 4: information technology, and desalination infrastructure. They followed that up with
Speaker 4: some comments put forward by the head of the parliament,
Speaker 4: the Speaker of the Parliament, and he added that headquarters
Speaker 4: and assets of financial entities that by US Treasury bones
Speaker 4: are also legitimate targets. And then a couple of hours
Speaker 4: ago we also got more rhetoric coming through from the
Speaker 4: country's National Defense Council, also putting out a statement saying
Speaker 4: that they're looking to not just mine around the Strait
Speaker 4: of Hormos, but around the entire Persian Gulf. So you
Speaker 4: can see that there is a lot of rhetoric coming
Speaker 4: back through from the Iranians. The big question I think
Speaker 4: over the next twenty four hours is whether the US
Speaker 4: actually follows through on this threat, and equally, whether Iran
Speaker 4: in turn will follow through on their own threat, which
Speaker 4: is to strike at some of these key strategic sites.
Speaker 4: And I will say, you know, the water, the desalination
Speaker 4: infrastructure would take this war to get another statusphere because
Speaker 4: so many countries in the region rely on the salinated water.
Speaker 12: Well.
Speaker 3: Alongside the threats from the US side Ethan, of course,
Speaker 3: we're hearing reports as well that Israel is ramping up
Speaker 3: its own attacks on Tehran. What's the latest from your perspective.
Speaker 16: Yeah, look, I mean, I think Jamonis said it up
Speaker 16: very very well. The Israeli is definitely flying over and
Speaker 16: attacking Iran again. And my distinct impression is whether or
Speaker 16: not there is a specific forty eight hour deadline that's
Speaker 16: going to end in the next fifteen hours or so.
Speaker 16: From the reporting I've been able to do in Israel,
Speaker 16: the Americans are planning a fairly extensive operation to retake
Speaker 16: the straight up war moves from Iran. It's going to
Speaker 16: take some weeks. That's the message they're sending the Israelis,
Speaker 16: and that's the idea that this war has been kind
Speaker 16: of driven by Israel. Whether or not that was true
Speaker 16: to begin with, is I think shifting now and it
Speaker 16: is now the US that's getting out front with the attacks.
Speaker 3: That raises the question of whether the US is preparing
Speaker 3: for a ground operation to retake the Strait of Horror
Speaker 3: moves and how Iran might respond to that. Jumana, what's
Speaker 3: the perspective there?
Speaker 4: Yeah, Well, our own reporting suggests that the US is
Speaker 4: weighing off the possibility of taking over Kark Island. And
Speaker 4: I should just mention for anyone not familiar with the
Speaker 4: geography that Kark Island is a lot more north than
Speaker 4: the Strait of Hormus. To actually get to Krk Islands,
Speaker 4: you need to pass through the strait if you're sending
Speaker 4: amphibious vessels to that part of the region. But that aside,
Speaker 4: that would you know, as Ethan just spoke about and
Speaker 4: imply yet another level of escalation in this conflict, because
Speaker 4: also alongside that reports that the US are also planning
Speaker 4: on sending around two and a half thousand, possibly three
Speaker 4: thousand Marines i e. Ground troops to the region as well,
Speaker 4: which would imply that what they are attempting to do
Speaker 4: here is twofold. There are two objectives the ongoing military operations,
Speaker 4: the airstrikes that are targeting Iran's both offensive and defensive capabilities,
Speaker 4: but alongside that looking at ways to forcefully reopen the strait,
Speaker 4: and from what we understand from our own reporting, it
Speaker 4: will take them a couple of weeks to degrade Iran's
Speaker 4: offensive capability sufficiently so that once the Marines and the
Speaker 4: extra ar Mada that arise to the region gets there,
Speaker 4: it won't be as exposed to as much of a
Speaker 4: risk as it would be if, say they were arrived
Speaker 4: were to arrive today.
Speaker 13: Ethan.
Speaker 3: There's certainly a lot of attention right now on this
Speaker 3: ultimatum from the President over the weekend for Iran to
Speaker 3: reopen the straight At this point, does it seem as
Speaker 3: though the US goals in Iran are aligned with what
Speaker 3: Israel is putting forward right now?
Speaker 16: I don't see a huge gap. I mean, I you know,
Speaker 16: what's clear is that assuring freedom of navigation through horror
Speaker 16: moves is a much bigger American goal than an Israeli goal.
Speaker 16: So the Israelis have set for themselves three goals here
Speaker 16: the nuclear, the ballistic, and the proxies and making sure
Speaker 16: that around can't be a threat again to it. I
Speaker 16: think that there is I can't say that the Israelis
Speaker 16: are unhappy with an approach to the Strait of Horm moves,
Speaker 16: although there is some chatter in Israel which says, you know,
Speaker 16: that's taking us somewhere else. Let's stay focused on our
Speaker 16: the goals that we've set for ourselves here. But you know,
Speaker 16: I think the Israelis are so grateful and so amazed
Speaker 16: to have lockstep US military operation against Iran that there's
Speaker 16: very little carping underway. And I don't you know, I
Speaker 16: really don't see a lot of daylight there. I see
Speaker 16: an enormous amount of cooperation.
Speaker 3: We're speaking with Ethan Bronner, our Israel bureau chief for
Speaker 3: Bloomberg News in Tel Aviv, and Bloomberg Horizons anchor juman
Speaker 3: and Borsecci with us this morning from Dubai. Jumana. We
Speaker 3: heard over the weekend from Treasury Secretary bess And that
Speaker 3: the goal, as far as the US strikes in the
Speaker 3: Strait of Horror moves is to degrade Iran's fortifications around
Speaker 3: the Strait, seeming to be specifically focused on that choke point.
Speaker 3: Does Iran continue to have control over the Strait at
Speaker 3: this point?
Speaker 4: Yeah, So this is the thing. So the Iranians maintained
Speaker 4: that the street is not closed, but it is effectively
Speaker 4: closed because it's under Iranian control. And we've been reporting
Speaker 4: our energy colleagues have been reporting over the last week
Speaker 4: that a certain number of vessels have trickled through the strait,
Speaker 4: but most of them are Iranian aligned or headed towards
Speaker 4: strategic buyers for Iran, so towards China or India or Pakistan.
Speaker 4: But they would have received pre approval from the Iranians
Speaker 4: to get through the straits, So ultimately, you know, they're
Speaker 4: still effectively controlling who passes through, and they've spoken about
Speaker 4: one of their conditions to come back to the negotiating
Speaker 4: table is to discuss the future of the Straits and
Speaker 4: perhaps introducing a new policy or framework by which vessels
Speaker 4: can pass through. Obviously, you know, having Iran maintain control
Speaker 4: over it is not something that's acceptable mostly to Golf
Speaker 4: States as well, given the line's share of their own
Speaker 4: oil products passed through the straits, and it's something I
Speaker 4: also think that means, you know, from the Golf States perspective,
Speaker 4: they want to ensure looking ahead that once this war
Speaker 4: is over, we do end up in a circumstance where
Speaker 4: the Strait is not effectively still controlled by Iran, that
Speaker 4: they're aill can flow through it without being administered by
Speaker 4: Iranian officials.
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