Bloomberg Audio Studios, Podcasts, radio News.
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen.
The war in the Middle East is now into a sixth day. Israel is carrying out new waves of attacks on Tehran's military and intelligence assets, along with strikes on Hesbola targets in Lebanon. President Trump says the US is doing very well.
Somebody said, on a scale of ten, where would you're ready, I said about a fifteen. And We're going to continue to do what we have the greatest military in the world by far.
President Trump spoke from the White House, so we get more from Bloomberg Middle East anchor Jumana Bursecci in Dubai.
White House Press Sector. You, Karen, I love it. Went on to say that they're moving to have complete dominance of the skies, and earlier on I actually conducted an interview with one of the advisors to the Israeli Prime Minister and he said that from their perspective, both IS and US operations have already surpassed in the first five days of this war what they thought they could achieve. This is his words. Obviously, that's how he's describing it.
The US also saying the Central Command that they've hit over two thousand targets in Iran over the first five days of the operations.
Bloomberg's Jumani Burssecci reports Iran is promising to ramp up retaliatory attacks. About a dozen nations are involved with Tehran's striking US bases and embassies across the Middle East. Turkey came under fire as well yesterday, the first time a NATO members been targeted, and the US submarine sank in Iranian warship and international waters off Sri Lanka in the first such attacks since World War II. Iran is vowing to avenge that strike well.
On Capitol Hill, Nathan the Shunate has cleared the way for President Trump to keep the war going. A Democratic led resolution to stop for their strike so was blocked by a vote of forty seven to fifty three. Republican Lindsay Graham says the war is justified.
President Trump, after a sincere effort and to bring this conflict to a peaceful conclusion, concluded that to continue to allow this regime to move forward would put America at unacceptable risk, and he was right.
But Democrat Chris Murphy says Americans are already paying a cost.
Oil prices up by nine percent, gasoline prices their largest one day increase in twenty years, natural gas prices up forty five percent. The region is in chaos. American consumers are paying the price, and for what. We still don't even know the reason for this war.
Senators Chris Murphy and Lindsey Graham spoke on the Senate Flora ahead of the vote. The House plans to vote in a war powers resolution today. Speaker Mike Johnson says he's confident it will fail there as well. A CNN pool taken the weekend the war began found fifty nine percent of Americans disapprove the strikes on Iran.
The Karen Former Secretary of State Antony Blank says real change in Iran will require a sustained military focus that could wear down US weapons stockpiles and leave it vulnerable to attacks from other adversaries. Lincoln was the top diplomat in the Joe Biden administration. He's questioning whether this White House is ready for the consequences of a drawn out war. B Lincoln spoke with Bloomberg's David Gurup on the latest edition of the Bloomberg Big Take podcast.
What I'm worried about. One of the things I'm worried about, and this gets to the second and third order consequences, is we so deplete our arsenal and it takes a long time to rebuild it that that puts us in a disadvantageous position when it comes to say a China or a Russia. All of those things need to be factored in. And again it's one of the reasons why if you're going to undertake something like this, you've got to make sure that you've you've factored all of that in.
And you can catch David Gurrow's full conversation with former Secretary of State Blincoln on The Big Take wherever you get your podcasts.
Well, Nathan, we are seeing oil on the rise once again this morning. West Texas Intermediate is up two point two percent at seventy six dollars twenty four sense of Baryl Brent is up one point seven percent eighty two dollars seventy six cents. Bloomberg Middle East News director Will Kennedy believes President Trump is closely monitoring the energy market.
I do think the old price is an important calculation for him, and although the price has been significant, it's worth bearing in mind that it's not out of control. That price is in the low eighties and not in beyond where they've been in recent years. Prices went well above one hundred dollars at the start of the Russia Ukraine War, so it may be in Washington's calculation that these oil prices are manageable.
Bloomberg's Will Kennedy on Iranian television this morning, a military official claimed Iran has not closed the Strait of Hormuz now.
The war continues to have a major impact on the airline industry car and the number of canceled flights to Middle East tubs has now surpassed twenty three thousand and thousands of passengers are stranded in the Gulf region, with more than half of all scheduled flights to or from the Middle East canceled. We get the latest from Bloomberg Aviation and Transport reporter Danny Lee.
Priority has really been given to people to get out of the region, and we have seen recent days the lucks of Emerson and Etty had elands starting receiving some flights to get people out, but clearly for now as a pretty broad disruption overall.
It's Bloomberg's Danny Lee and the State Department says seventeen five hundred Americans have safely fled the region. It's urging others to register via its website, Nathan.
Amazon also being impacted by the war in the Middle East. Your own strikes have damaged three facilities operated by Amazon in the United Arab Amoris and Bahrain, and Israel and the US have reportedly hit at least two data centers in Tehran, one of them connected to the Islamic Revolutionary Guard Corps.
Karen Goldman Sachs CEO David Solomon says he's surprised so far by the reaction to the Iran attacks in the markets, but in an interview with Bloomberg, he says he does not see complacency.
I think there's a lot, a lot of uncertainty around the direction of the conflict, how it will be resolved. You know what the off ramps are, and you know, I think it's fair to say when you look at markets, market reactions have been relatively benign, and I certainly could have seen over the last couple of days you know a little bit more volatility, but I don't think people are being complacent. I think that market participants are looking and trying to say, you know, how is this going
to play out? What's the end game?
To catch the full interview with Goldman Sachs CEO David Solomon on Bloomberg's new video experience on the Bloomberg Business app Nathan Fed.
Governor Stephen Myron is still pushing for interest rate because even with the war in Iran, and we spoke with Myrain yesterday, I think.
It's a moment to continue acting. We have I have policy, I have projections for unemployment. I have projections for labor markets, so to my for inflation, so to my colleagues, and I believe it's appropriate to continue acting in accordance with those projections until you get evidence that you have to change your projections. And thus far, the evidence from event from events over the week and haven't led me to change any of my forecast for the lad market for
inflation over the medium terms. So it's too early to respond to them.
Thank Governor Stephen Myron says it's too soon to say how the war will affect the US economy and other FED officials have said the risk of higher oil prices is clouding their outlook.
Turning to the equity markets, Karen futures have turned a touch lower this morning, following yesterday's gains on Wall Street. Shares of Broadcommerce still in the green, up seven percent in early trading. The company expects Ai Chip sales to top one hundred billion dollars next year. Broadcom also delivered a better than estimated quarterly outlook and announced a stock buyback plan worth as much as ten billion dollars.
Well in Asia, Nathan China has set as low as growth target since nineteen ninety one, as policymakers finally appear to acknowledge the difficulties facing the economy, including deflation, teriff fishs, and the property sector. And here's Chinese Premier Lee Chiang speaking through an interpreter in Beijing earlier this morning.
I mean targets forty women this year are US follows GDP growth four point five to five percent. We striving were better in practice and.
As hun is Premier Lee Chiang. Hanging over any projection is a summit between Leader Seson Ping and President Trump, which could determine the level of tariffs charged on Chinese goods.
And this programming note, Karen, as we've just seen this past weekend markets to way clothes on Friday, but the world doesn't. That's why we're bringing you a new live radio and TV show, Bloomberg This Weekend, is looking beyond the daily headlines to the bigger themes striving politics, business and culture. Join David Gera, Christina Raffini, and Lisa Matteo for smart conversations and in depth interviews that help make sense of the week that's been and what comes next.
Get Bloomberg This Weekend live Saturdays and Sundays from seven am Eastern on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business App.
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 Blomberg's Michael Barr Michael, Good Morning.
Good Morning, Karen. The House Overside Committee as voted to subpoena Attorney General Pam Bondy as part of its investigation into convicted sex offender Jeffrey Epstein. Commerce Secretary Howard Lutnik has also agreed to answer questions about his past ties to Epstein, including emails showing a visit to Epstein's private island years after Lutnik says he cut off contact. Democratic Congressman Stephen Lynch of Massachusetts is a senior member of the committee.
With Pam Bondy, it's a different situation. She has withheld meaningful and important documents from Congress. She scrubbed the information that she gave to Congress from all references to Donald Trump.
Lynch says that Trump administration had six million documents, they gave us three million. Minnesota Governor Tim Walls and State Attorney General Keith Ellison appeared before the House Oversight Committee to testify about alleged fraud in state programs. The committee accused Walls and Ellison of knowing about alleged fraud for years and failing to act on it. Committee chair James Comer accused the leaders of ignoring warnings from more than thirty whistleblowers.
What we've uncovered in Minnesota is not a paperwork error or a few bad actors slipping through the cracks. It is sustained failure of leadership.
Walls defended their leadership, saying the allegations are being used as rationale for President Trump's deadly immigration raids in the state.
In Minnesota, if you do fraud public programs, if you steal taxpayer money, we'll find you, We'll prosecute you, we'll convict you, and we'll throw you in jail.
Ellison says Operation Metro Surge did nothing to address fraud in our state, harmed our economy and scarred our people. US and Canadian military aircraft were sent to the Skies in response to an ultimately unfounded security threat on a Scandinavian Airlines flight bound for Newark Airport. The plane landed safely. Global News twenty four hours a day and whenever you want it with Bloomberg News Now Michael Barr, and this is Bloomberg Hererac. Thanks Michael.
A time now for our Bloomberg Sports update, and for that you bring in John Stash Houurd.
And Karen Lou Holtzer passed away at the age of eighty nine. A member of the College Football Hall of Fame, he took over at Notre Dame of the mid nineteen eighty. In his third season, he coached the Irish to the national championship. The Patriots have released wide receiver Stefon Diggs after just one season with them. He played well, but this saves them sixteen million of the salary cap Diggs, who comes a free agent. Ken See Chiefs have traded
cornerback Trent mcduffy to the La Rams. That Chiefs get the Rams first round pick and three other picks. That's your Bloomberg Sports Update.
Stay with us. More from Bloomberg day Break coming up after this.
Coast to coast on Bloomberg Radio, nationwide on Serious Exam and around the world on Bloomberg Dot and the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning on Nathan Hager. On day six of the US Israeli war with Iran, there is little sign of let up on either side, and President Trump continues to make the case that he was justified in going after Tehran.
They're attacking their neighbors. They're attacking there in some cases allies or that's so long ago allies, And you know, it's really a nation that was out of control.
It was President Trump at the White House. We're joined now by Bloomberg News Middle East Breaking News editor Patrick Sikes. Patrick, thanks for coming back on with us. If you could get us updated on the latest that's been happening in the region. Good morning morning.
Yeah, I think pertinent said Trump comments there, just you know, since yesterday we've seen the first incidents both on Turkish soil, with a ballistic projectile intercepted of Turkey yesterday and then today, just a short while ago, the first incident in Azerbaijan
with Derne being a drone falling on Osari territory. So I think, yeah, again, in just indicating even if perhaps the overall volume of the volleys of missiles being fired might be falling from Iran, we're still seeing the conflict sprawl out in terms of geography.
And we also saw yesterday the first strike by an US submarine on a surface vessel since World War Two off India's backyard. What does that tell us about the potential scope of this conflict?
Patrick, Yeah, absolutely, I mean I think it just shows that the US is prepared to go far far away from Iranian shores Iranian territory in pursuit of these objectives that it's laid out. I think the maritime aspect of it is also important, because Iran was saying just earlier today that it will make America regret that particular attack that incident, and I think that matters because of all the munitions that Aaron will have around the Persian Gulf
and all the tensions around shipping there the moment. I think it's going to give Iran an extra incentive to try and target shipping, perhaps even military shipping in the region.
As the conflict continues. Patrick, you'd seen some headlines across the Bloomberg terminal of Iran saying it had offered some deal terms before the conflict began. Tell us more about that and what to make of it.
Yeah, that paniced the market a bit because it was sort of recirculated the comments. They were actually made kind of overnight a few hours ago by a deputy foreign minister in Iran, but it shows just how on edge the market is that they were reacting. The idea was that Iran was willing to give up not its nuclear program, as some had reported, but the highly enriched stockpile of uranium that it's built up if it was able to get something attractive in exchange. I think substantively that wasn't
really new to us. But I think, as I said, you know, the market reaction just shows how eager people are for new information and the level of and to the patient that's out there.
I imagine it resurfaces the question of the ultimate end goal for the US end Israel. If that kind of offer of giving up to just enriched geranium wasn't enough, what could the potential end goal be for the US at Israel at this point?
Yeah, I think part of the problem is that those goals, you know, frequently though we see them being laid out, they tend to vary right day to day, week to week. Sometimes it's about a nuclear bomb, which of course Iran says it doesn't have anyway. Sometimes it's about missiles, other
times it's about threats to the region. The current line that you know, I think was the US saying they want to remove Iran's ability to project threats is obviously a little bit more ambiguous than some of the above, which again I think this leaves a lot more room for the conflict a spiral and in turn for Iran to keep ramping up from its side.
In our last thirty seconds, with airline cancelations piling up, how are Western and citizens getting out at this point?
Yeah, there's still a lot of panic and confusion, I think, with some mixed guidance from some of the countries in the West, but still many many people stuck in the Gulf, coming through the golf or further afield stuck, and I think some countries have been trying to send aid. Individual companies will likely be looking at potential evacuation options, but it's still all, i'd say, rather unclear for the moment.
This is Bloomberg Daybreak, your morning podcast and the stories making news from Wall Street to Washington and beyond.
Look for us on your podcast feed by six am Eastern each morning, on Apple, Spotify, or anywhere else you listen.
You can also listen live each morning starting at five am Wall Street time on Bloomberg eleven three to zero in New York, Bloomberg in ninety nine to one in Washington, Bloomberg ninety two nine in Boston, and nationwide on serious XM Channel one twenty one.
Plus listen coast to coast on the bloom Business app now with Apple CarPlay and Android Atto interfaces.
And don't forget to subscribe to Bloomberg News Now. It's the latest 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.
Dabray