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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 the latest on the Middle East.
The US has issued a sixty day license allowing Iran to sell its own oil on the international market. This gives Tehran an economic lifeline as both sides continue talks on a permanent peace steal. We get the very latest from Bloomberg Middle East correspondent to Birabu Omar.
What we know about this waiver is that essentially the US Treasury has extended it to Iran until August twenty first, that is the day where the sixty day period of negotiations would have stopped, and so that would allow Iran to sell oil exports, bringing back this much needed supply to the market because of the shutdown industrait of her moves.
Our teams on the energy.
Side have tracked just how many oil barrels would come out or have come out actually over the past week, and that's about thirty million barrels.
And so we're still seeing a trickle of movement.
Definitely better situation than what it was at the waiver essentially means that Iran can sell its oil even to US refineries theoretically. But something to bear in mind again is that the EU, for example, has its own sanctions and so we don't know if they're going to be buying this oil.
Bloomberg's of Birabo Omar says seven tankers indicated they were in the strait of hormones this morning and checking oil prices now, West Texas Intermediate is down seven tenths percent, trading its seventy three dollars thirty five cents of barrel. Brent is eight tenths percent lower at seventy seven dollars twenty eight cents.
We now turn to the latest developments in British politics. Nathan the UK could be sent for a quick transition to a new premiership as rivals to the front runner Andy Burnham stand aside. We go to London where Bloomberg's un Potts he's the latest good morning you one Coaron Nathan.
The UK is set to get its seventh prime minister in a decade. In fact, it's almost two hundred years since ris and change its leader so frequently. As Labor Party has a majority in Parliament, its leader becomes Prime Minister, and after the former Mayor of Manchester, Andy Burnham's main rival for the leadership dropped out, he could get the job without a formal contest. If that happens, Number ten Downing Street could have a new occupant as soon as the middle of next month.
In London, I'm you in Port Sploomberg Radio. All right, you and thank you. Let's turn to politics here in this country.
Because it is primary election day in New York and Maryland, as well as a runoff day in South Carolina and New York, a number of congressional races could be a test of Mayor Zorn Mumdani's political power. The mayor has endorsed challengers to two Democratic incumbents, Dan Goldman and Adriano Spayad. We spoke with Congressman Goldman about his race against former New York City Comptroller Brad Lander.
Look, I think broadly, we generally agree on what the problems are. Life is just way too expensive for the vast majority of Americans, and we have to address the dramatic escalation and wealth inequality and the difficulty that so many people have in accessing opportunity in this country, and the American Dream.
New York Congressman Dan Goldman appeared on Bloomberg's Balance of Power. Mayor mum Donnie's also endorsed activist Daria Liza Avela Chevalier against Congressman of Spayot Well.
There's also a crowded field Nathan to succeed retiring Congressman Jerry Nadler in his Midtown Manhattan district.
It includes John F.
Kennedy's grandson Jack Schlosberg, and former never Trump republic Intern Democrat George Conway. Mom Donnie has not given an endorsement in that race, but in the interest of transparency, we should note that Michael Bloomberg has endorsed Michael Lasher for Congress, and Bloomberg is founder and majority owner of Bloomberg LP, the parent company at Bloomberg Radio.
Karen, We're also keeping an eye on primary races. In Maryland.
Governor Wes Moore is seeking reelection to a second term. He's facing a Democratic primary challenge from physician Eric Felber. The Republican governor's race features nine candidates, including former state Delegate Dan Cox, who lost to More in twenty twenty two in the House. Twenty four candidates are vying for retiring former Democratic Leader Steny Hoyer's seat. They include former US Capitol Police officer Harry Dunn, who helped defend the
Capitol during the January sixth attack. And in the South Carolina runoff, Lieutenant Governor Pamela Vett is facing state Attorney General Alan Wilson again in the Republican governor's race. President Trump endorsed a Vett in the primary, but last week he said he'd be happy if either candidate wins.
Today, well, it's turned to Washington now, Nathan. President Trump is putting attention on the Lincoln Memorial reflecting pool. Algae has started to build back in after his sixteen million dollar resurfacing of the landmark, and now the President says he has evidence of vandalism at the site.
We have one hundred and.
We have a I think two hundred and ninety three hundred foot slid right through it. Probably a box cutter or a knife of some kind, or we had people lifting up the basic some of the It's not a lot of damage, but it will probably have to let the water out and refix it.
The President spoke to reporters in the Oval office, but he provided little evidence to support his claim. The Interior Department says five people have been arrested for vandalism at the pool and five others have received citations on truth social Last night, President Trump said he's preparing lawsuits against ABC News over its reporting on the damage to the Reflecting Pool.
It's tart of markets now, Karen. We're watching a tech led selloff around the world. Nesdak futures right now are down about two and a half percent, and in Asia, South Korea's Cospi index plunged ten percent. Mark Doubting is chief investment officer at RBC Blue Bay.
If he's turned back a little bit, I think what you would say is that some of the recent performance in stacks has been highly speculative, fueled by a passion from retail investors for short term gains looking at momentum. This is the way the markets have been behaving on offer eighting.
That's RBC Blue Bays Marked Doubting.
Their shares of s k Heiniz and Samsung Electronics each plunged more than ten percent in Asia. Here in the US, memory chip maker Micron Technology reports earnings tomorrow.
Nathan SpaceX shares they continue their recent slide. They're down another three point eight percent in early trading. The stock is coming off three straight losing sessions. They're raising a total of six hundred billion dollars in market value. The sell off comes as the Elon Musk lead firm gets ready to sell investment grade bonds for the first time. Robert Schiffman is a senior credit analyst for Bloomberg.
They're going to be spending a lot more over the next few years than they make, probably in the neighborhood of thirty to forty billion dollars of negative free cash flow for the next few years. On top of that, they have a twenty billion dollar term loan due next September that are going to use the proceeds from this
bond deal to pay off. So they're just getting ahead of the curve like everybody else, Like why are the alphabets and amazons and metas raising so much just because over the next few years are going to be spending a lot more.
Bloomer's Robert Schiffman says SpaceX is seeking to raise at least twenty billion dollars from the debt sale.
Finally, Karen tributes continue to pour in following the passing of former Federal Reserve Chairman Alan Greenspan. Chuck Lieberman of Advisor's Capital worked with green Span when he joined his firm as an economic advisor.
He was always insightful. He did a great job of explaining points if you ask him a question. He always had charts to demonstrate to show the data backing up his logic, and his logic was impeccable. He was insightful really until the very end.
Chuck Lieberman of Advisor's Capital praised Greenspan's independence and communication as FED Chair, as did former FED Governor Betsy Duke.
He was so famous for that sort of double speak that nobody could understand, but he really pioneered FED communications and the communications that were used to today.
In hearing from the committee after the meetings, it's former FED Governor Betsy Duke.
Now.
Alan Greenspan's legacy was clouded by the two thousand and eight zero nine global financial crisis that followed his time as chair. Princeton professor Alan Blinder recalled how some felt green Span missed the build up to the housing bubble that preceded the crisis.
The markets would get some crazy ideas in their heads, and more than once I went to green Span and would say it would only take one statement from you to get that crazy idea out of their heads. But he didn't until late in his term when he was starting to change.
It's Princeton professor Alan Blinder, and following the news of Greenspan's death yesterday, colleagues described him as a driving force for change of the FED and a guiding light for investors. Alan Greenspan was one hundred years old.
Time now for look at some of their stories making news in New York and around the world, and for that were joined by Bloomberg's Michael Barr Michael, good Morning.
Good Morning Karen. In a rare act a bipartisanship, the Senate passed the twenty first Century Road to Housing Act. The measure will loose in regulations to encourage more home construction, opened up funding to convert abandoned buildings into new housing, and it also bans Wall Street investors from buying single family homes so those homes can instead be sold to families.
On the Senate floor, Democratic Senator Chuck Schumer of New York said for too many Americans, home ownership is simply unaffordable.
The median home buyer in America is forty years old. The down payment is excruciating to many and puts housing out of reach for them.
The House is expected to vote on the measure today. There is where the Acting Director of National Intelligence, Bill Poulty, has begun firing people at the agency. The President earlier said he had asked Poulty to execute the immediate downsizing of the office. In California. A state of emergency in the Boyle Heights neighborhood of Los Angeles, where a warehouse fire has been burning since Wednesdays, prompting air quality alerts.
Building owners say the fire may have started while contractors were testing solar panels on the Los Angeles Fire Chief him Me Moore.
If you're sensitive to smoke or have any respiratory concerns, please stay indoors, close your windows, set your air conditioning units to recirculate rather than draw from outside air fire chief.
More Global news twenty four hours a day and whenever you want it with Bloomberg News Now. I'm Michael Lamarn. This is Bloomberg.
Karen.
Well, thanks Michael.
All time now for our Bloomberg Sports update, and for that we bring in John stash Hour.
Thanks darn a blockbuster NBA trade ahead of tonight's draft. Giannis unto the Compo thirteen years in Milwaukee. A two time MVP, he led the Bunks to the NBA championship in twenty twenty one. Traded to the Miami Heat for four players and three first round draft picks. Julius Randall traded by Minnesota to Brooklyn, also from the NBA. Dusty Maynade the new coach of the Dallas Mavericks. He just won the national championship at Michigan College World Series in Omaha, Oklahoma,
wins the title beating North Carolina. That's a Bloomberg Sports updated with US.
More from Bloomberg Daybreak coming up after this.
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This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.
As talks continue between the US and Iran, Tehran is getting an economic lifeline, a sixty day license from the US to sell its oil. Vice President jd Vance says the US is not giving up too much, whether good.
Faith or bad faith. You can't trust anybody's words. You have to trust what they actually do.
That was Vice President van speaking on his way back from the talks in Switzerland, and we're joined now by Bloomberg Jerusalem reporter Dan Williams. I think i'd heard of Vice President in Vance and other administration officials, Dan say that Iran's financial benefits through this process would be performance based.
Does this sixty day waiver rise to that level? Good morning?
Time will tell, Good morning, Nathan. There's already a divergence of account from Iran and from the United States, now that they've gotten the photo op meeting of principles at that summit in Lucerne out of the way and left the stage for more, should we say, mundane technical talks. Either side is talking up, but often in different directions.
The US the Trump administration saying that unfrozen funds will be used for humanitarian purposes, perhaps even to buy soy products from the United States, but the spokesman for the Foreign Ministry in Tehran saying there would not be a
limitation on how Iran uses those funds. That of course will stir concern in the US in the West, and indeed in the region that some perhaps all of that money could go toward rebuilding Iran's military capacity, perhaps the capacities of Iranian allies like the Hesbala militia in Lebanon. Perhaps not coincidentally, the top US diplomat Marco Rubio is
also beginning a visit to the Gulf. Perhaps he's heading out there to try and reassure sure golf Arab states aligned with the United States that the Trump administration will do what it can to keep this deal on track during that critical sixty day review period.
How are these talks being received in Israel right now? Dan, Of course, Israel remains a wild card with the fight against Hesbola and Lebanon.
Yes, there are actually those who argue that the fact it's a wildcard, the fact that from the outset it was outside these negotiations on the MoU, it's not a signatory, and apparently it wasn't even consulted much of the time when it was being drafted. There is a viewpoint now that perhaps this strengthens Israel's hand paradoxically, because Israel can claim frankly, naturally and legitimately that it's acting alonely Uwoni laterally because it wasn't consulted and it certainly didn't sign
on the dotted line. These Raelis were shocked when this surface emerged about a week ago that this deal was in place. It appears they've now resigned themselves to letting the Americans take the lead. Trump, despite a dipping of his approval ratings in Israel as a foreign leader, nonetheless is one of the friendliest presidents the Israelis have ever seen in the White House. They won't be quick to
turn their back on him. At the same time, they have a very immediate focus on Lebanon, something you alluded to earlier in our conversation, where they want to make sure that their freedom of operation against Hesbela is not hindered by whatever emerges from this US Iranian deal. The Iranians want to preserve Hesbela, They want to force Israel out of Lebanon, and these Raelis are saying no, that's a red line for them.
For now.
The Americans have been pressing Israel to hold far as much as possible, perhaps to review the rules of engagement in Lebanon to prevent needless loss of civilian life, needless damage there. But the Americans seem to be content for now with not insisting on an Israeli withdrawal from what is effectively five percent of Lebanese territory.
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I'm Karen Moscow and I'm Nathan Hager.
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