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Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin with a breaking story impacting hundreds of thousands of travelers around the world. London's Heathrow Airport is closed all day. Let's get the very latest with Bloomberg Daybreak. Euro banker Caroline Hepgar in London. Good morning, Caroline, what is happening?
Good morning, Nathan and Karen. It is a fire at a power substation about two miles from the airport that broke out just before midnight that led to a cut in power for Heathrow. It has forced the cancelation of thousands of flights. Flight Radar twenty four says that there were due to be one three hundred flights for today. Some one hundred and twenty planes had to be re rooted away from Heathrow in the early hours of this morning.
Heathrow says that the disruptions will continue over the coming days, adding that passengers should not travel to the airport under any circumstances. The London Farbagade said in a statement that the blaze is now under control. No casualties, but the cause of the fire is not yet known. European travel and leisure stocks Nathan this morning down two percent, he throw, which is home to airlines including IAG's British Airways and
Virgin Atlantic. IAG shares now down as much as four point three percent.
Caroline, when do we expect things to get back to normal?
This is the unknown, he throws, the busiest airport in Europe. The airport doesn't know when power will be restored. The Energy Secretary Ed Millardband has been speaking to media in the UK, including to Sky News. He says that he's spoken to the National Grid, who are really at the epicenter of this, he says, and we will be doing everything we can both to restore power and to help
the national grid. Jeffrey says that passenger compensation for delayed flights is likely going to have a big immediate impact on IAG. Some local people were evacuated. There was lots of smoke, no doubt, many thousands of frustrated passages.
All right, Caroline, Hepger, thank you. Will continue to follow this story throughout the morning. We turned to Washington now, though, with President Trump denying a bombshell report about Elon Musk being briefed about the Pentagon's plan for any potential war with China to get the very latest to the Bloomberg's John Tucker, John, good Morning and Good Morning Karen.
The New York Times sites multiple unidentified US officials as saying Musk would see details of American plans in a presentation led by the Defense Secretary Pete Hegsith and top US military leaders. The Wall Street Journal also reported Mosk would receive a briefing on US plans for any potential China war, and a social media post, President Trump says
the Times report is ridiculous and completely untrue. In a separate post, heg Sith confirmed that Musk will visit the Pentagon today, saying it's an informal meeting about innovation.
Well.
The reports underscore the unprecedented roles that Musk holds a across the heart of the US government and the economy all at the same time. Any such briefing would expose some of the Pentagon's closely guarded strategic thinking to a billionaire with extensive business ties in China. The meantime, Musk is now threatening Pentagon employees in a post on Acts. He says he looks forward to the prosecution of those at the Pentagon who are leaking false information. He warns
they will be found in New York. I'm John Tucker, Bloomberg Radio.
John, thank you.
President Trump's made a major move and is push to overhaul the federal government. He assigned an executive order to all but dismantle the Department of Education.
After forty five years. The United States spends more money on education by far than any other country, and spends likewise, by far more money per pupil than any country. And it's not even close, but yet we rank near the bottom of the list in terms of success.
The President's order direct Education Secretary Linda McMahon to take all necessary steps to close the agency, but it doesn't give a clear blueprint, and shutting down an entire cabinet department would take an Act of Congress. In remarks heard here on Bloomberg, Trump said the agency's core functions, like pelgrants and funds for special needs children will remain.
They are going to be preserved in full and redistributed to various other agencies and departments that will take very good care of them and it's very important to Linda, I know, and it's very important.
To all of us.
President Trump's already moved to cut nearly half the Education Department's workforce.
This order is likely to face legal challenges well, Nathan.
President Trump also signed an executive order aimed at boosting critical mineral production, and that could include coal. The President is using the Defense Production Act to provide financing, loans and other investments of poor to process rare earth elements and other minerals in the US. The move addresses long health concerns that China controls the vast majority of a rare mineral processing certain markets.
Now, Karen futures are lower as we close out out the trading week. The S and P five hundred's fallen for four straight weeks, and there could be more volatility than normal today. We get more from Bloomberg Market's reporter Valerie Titel.
We need to take an eye to triple witching. This is the option expiry event that happens at the end of every quarter. It's called triple witching because there are single stocks ETFs and indices. All three options tied to those equity indices expire this afternoon. Into the close, we normally see a very large surge in volumes and some volatile stocks, maybe some more less liquid single names have some pretty wild swings into the clothes.
Bloomberg Markets reporter Valerie Ttel says four and a half trillion dollars of options contracts expire today.
Well, let's check some stocks on the move this morning, Nathan and shares of FedEx are down seven percent. The shipping company has lowered as full year guidance for a third consecutive quarter. Inflation and uncertain demand for packages are squeezing the company's bottom line. Lea Clasgow covers FedEx for Bloomberg Intelligence.
The demand picture is probably not as good as we thought it might have been three months ago when President Trump was elected and people thought the animal spirits will be released, and you know, we'd have a less regulation, kind of lower tax environment, which is obviously better for business. But fast forward today, you know, companies are reeling in their capex because they just don't know what the future holds.
And Bloomberg Intelligence is late. Glasgow says FedEx's latest outlook assumes the global economic, political, and trade environment does not worsen any further and Karen.
Shares of Nike are down five percent.
The sportswear maker is signaling further declines in revenue and profitability due to an inventory clearance. Nike also expects its gross margins to decline sharply in the current quarter from a year earlier, in part due to US tariffs on products from China and Mexico.
We're also watching Micron Technology, the largest US maker of computer memory chips, gave a strong sales forecast for that current quarter, bolstered by demand for artificial intelligence products, and.
AT and T is going to be in focus today. Karen Bloomberg News has learned BT Group approached major telecommunications companies, including AT and T, about partnerships to help turn around its struggling international business. When asked about a potential BT partnership recently, AT and T's chief financial officer declined to comment.
Well, we turn to the economy now, and former Treasury Secretary Larry Summers says he is astonished that FED chair J. Powell used the word transitory to describe the effects of President Trump's tariff policy.
I would have thought the chairman would retire the words translatory. That is perhaps the most notoriously ill chosen phrase of his excellent seven and a half year run as FED chair.
And Summers made the comments on Bloomberg's Wall Street Week with David Weston. Here're the full conversation tonight at six pm Wall Street Time on Bloomberg Radio and Bloomberg Television, or get the Wall Street Week podcast after the show airs wherever you get your podcasts. Time now for a look at some of the other stories making news in New York and around the world. And for that we're joined by Bloomberg's and Michael Barr Michael, Good Morning.
Good morning Karen. The National Transportation Safety Board is issuing sweeping recommendations for state departments of Transportation to immediately assess the vulnerability of their bridges. The report comes after the collapse of the Francis Scott Key Bridge in Baltimore after it was struck by a cargo ship almost a year ago. INTSP Chair Jennifer Hammondy says the report should be a warning to other bridges across the country and is urging owners to comply.
Had they ran the calculation on the Francis Scott Key Bridge, the MDTA would have been aware that the bridge was almost thirty times greater than the risk threshold ASHTOSE sets for Critical Essential bridges.
NTSP Chair Jennifer Hammody is calling on the vulnerability assets of nearly seventy bridge bridges across the US, including fifteen in New York and New Jersey. Transportation Secretary Sean Duffy says he's granting New York a thirty day extension to end its congestion pricing program in Manhattan. The Trump administration's original deadline was today. New York Governor Kathy Okel and the MTA pledged to keep the congestion pricing cameras on
no matter what the administration did. Congress Member Jerry Natler of New York says, the elected officials who run the city know it best.
The value pricing program is so the established under federal law, it is clearly delivering tangible benefits. Simply put, congestion pricing is no different than New Jersey's ability to set tolls on the New Jersey turnpipe.
Meanwhile, opponents of the tolls, like Representative Josh Gottheimer of New Jersey, say congestion pricing is destined.
To fail to the NCAA.
Enjoy your last hour, screwing over hard working commuters with the congestion.
Tax Gottheimer audio courtesy of News for. Israel's cabinet has approved Prime Minister menagement at Now, whose decision to fire the country's domestic intelligence chief Running Bar despite thousands of protesters rallying against his removal. Global News twenty four hours a day and whenever you want it with the Bloomberg News Now. I'm Michael barrn. This is Bloomberg. Karen.
All right, Michael barr thank you time now for the Bloomberg Sports Update, brought to you by try State. Audie. Here's John Staneshawer John, good morning, Good.
Morning, Karen.
Nobody at Saint John's wants this storybook season to end. The red storm began. The NC doubled as in Providence against Omah, and a slow start took Saint John's three and a half minutes to score a point. Thirteen minutes into the game, they had yet to take a lead, but up five at halftime. The second half all red Storm.
Saint Shahn's really stayed attached Oscar warn Let's sit three mist it wawn what down by Scott here come to Charnie's on the move three on one give what wos what brs to slam Shawnee.
Start boy us been on Saint John's won eighty three fifty three. R. J. Lewis scored twenty two. It's their first NCAA win in twenty five years, and tomorrow afternoon if they'll take on Arkansas. It was earlier in Providence where the biggest upset took place. Not only that twelfth seeded mcneie knocked off fifth seed at Clemson, but that at halftime McNeice led thirty one to thirteen, They led by twelve with a minute to go, ended up winning by only two first NCAA win in school history. The
next really missed Jalen Bruns. In last two nights of May that obvious, a fifteen point loss in San Antonio a seventeen point loss in Charlotte. The Hornets have lost fifty one games. They've had five losses this month by more than thirty points, and yet they outscored the Knicks in every quarter and won one fifteen to ninety eight. The Nets in Indiana were up ten at the half, Pacers came back to winning overtime. Another Rangers loss at the Garden loss at Toronto four to three.
That's three home losses this week.
Mayple Lice never trailed.
Got two goals from John Tavares, Islanders with a four to three win over Montreal, now tied with the Rangers. The Devil's lost to Calgary five to three. Of the Celtics being sold, the price tag is six point one billion, a little more than what the Washington Commanders just went for. So what's the most in North American sports history? Two billion more than any NBA team has gone for. The new ownership group, led by Bill Chisholm from the Symphony Technology.
Firm, is a lifelong Celtics fan. Johns Dashy Ally Bloomberg Sports Karen Natan.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager.
This morning, Europe's busiest airport is shut down. A power outage just forced London's Heathrow to close all day, causing travel chaos for the hundreds of thousands who rely on the Transatlantic flight hub each day. For the very latest We're joined by Bloomberg Global Aviation editor Benedict Como. Benedict, good morning. What do we know at this point about what caused this fire? We understand it happened at a power substation.
Yes, good morning, that's right. So this is a power substation nearby, about two miles away from the airport that caught fire in the middle of the night. We don't know why. That's going to be one of the main thrust of the investigation. It has now been extinguished, but the damage is done. So not only are people in the vicinity without power, but hethrow airport is entirely shut off.
Give us a sense of just how much chaos this is causing right now. As we said, this is the busiest airport in Europe.
Yeah, this is This is an unprecedented breakdown really for the airport. There have been disruptions in the past, you know, there might have been strikes, there might have been weather related to disruptions, but for the airport to close down for an entire day, that is unheard of. This is an airport that handles about four hundred flights a day, two hundred thousand passengers, you know, give or take an aircraft taking off about every minute, so this is to
have a massive ripple effect. There were planes in the air already that were coming in from the Middle East from Asia. Those planes had to be rerouted to places like Frankfurt, like Birmingham in the UK. Some were able to land at Gatwick Airport, which is the other big London airport, so those people were lucky. But for a lot of people, they're out of position or they didn't even get to where they wanted to be. Everyone flying
from the US will have to think twice. Hopefully by tomorrow things will be back to normal, but usually it is erupted on this scale leads to several days, if not into next week, of disruptions because you'll have aircraft out of position, you'll have a crew out of position. So this is not just today, This is something that will stay with the airport for the next couple of days.
Whenever something like this happens at an airport, your mind goes to sabotage. Are authorities going there yet, Benedict, It's.
Too soon to say the blazer's just been extinguished, but this will certainly be one line of inquiry that they will look at. Another question that will come up is how can it be that as something like Heathrow and Airport that are so critical to the UK infrastructure, didn't have the necessary redundancy systems in place. How can it be that a single power station, regardless how big and important it is, could really take out this airport. What
kind of precautions might there have been. This comes at a time where the airport is trying to expand the UK is really pitching it we're open for business, We're open for expansion kind of idea. And this is not a good look for the airport or for the government at large, and there will be some tough questions that will be asked.
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News, whenever you want it in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow.
And I'm Nathan Hager.
Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg.
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