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Good morning, I'm Nathan Hager.
And I'm Karen Moscow. Here are the stories we're following today.
Karon, we begin with tensions in the Middle East. US officials say Israel has launched a retaliatory strike on Iran, less than a week after Tehran's rocket and drone barrage. Bloomberg News Middle East Breaking News editor Dana Krasch has the latest on what we know so far.
Reports trickled in in the early hours of the morning of a blast over Isfahan, where we know there are military sites and nuclear infrastructure, so the blasts are likely the result of what Iranian media is saying is defense systems activated to intercept what has now we know our drones. We also had a report out that the nuclear site there is completely safe, and that's of course reassuring, as Iran and Israel are arch rivals, but they also have nuclear.
Pro Bloomberg's Danikrace says Iranian state media are downplaying the attack. Reuter's sites in Iranian officials saying there was no missile strike and that Iran is not planning a response at this time.
Well, Nathan Markets remain on edge on these Middle East tensions. City Group Global Chief Economist Nathan Sheet says investors tend to overreact to events initially before settling down.
I think at the moment, the market's telling us that the balance of risks here looks to be reasonably favorable and the response in the oil market has been contained, And if that's the correct assessment, then I think the broader implications of this are it doesn't escalate, and we're able to continue on more or less in the status quo.
City Group Global Chief Economist Nathan Sheets, speaking to us earlier on Bloomberg and checking oil right now, NIMEC screwed up sixtensive percent at eighty three dollars twenty one cents a barrel, while Brent is at eighty seven thirty six cents.
And caring these tensions could give even more of a push to long stalled aid for Israel, Ukraine and Taiwan. On Capitol Hill, Bloomberg's Ed Baxter reports that package is on track for votes this weekend.
House Speaker Mike Johnson says he expects to bring up split Ukraine, Israel Taiwan aid bills tomorrow. The chair of the House Intelligence Committee Mike Turner on Bloomberg's Balance of Power, says he thinks it is essential to get aid going to Ukraine this week.
They running out of ammunition. Russia is certainly surging and putting additional pressure on the front line, and also the lack of US support is impacting morale even in Ukraine.
House Minority Leader Hakim Jeffrey says Democrats are going to do what's necessary to get this across the finish line. The Senate looks to move next week. Ad Baxter, Bloomberg Radio.
All right, ed, thanks now to the latest in a criminal case against Donald Trump. The jury has been seated in Manhattan and Bloomberg's doing Groscer reports from New.
York jurors and one alternate juror have been sworn in in Trump's hush money trial. The jury of manhattanites includes a sales professional, a software engineer, a security engineer, a teacher, a speech therapist, an investment banker, a retired wealth manager, and several lawyers the trial. Judd says he hopes to have jury selection wrapped up today and opening statements on Monday.
In New York.
June Grosso Boomberg Radio.
Okay, June.
Thank you. Now, we want to turn back to markets. We're watching shares of Netflix this morning. They are down more than six percent in early trading. Subscriber growth for the streaming giant did surpass estimates, but the company says those gains will be lower this period. Bloombergs Lucas Shaw is in Los Angeles. He says optimism for Netflix's first quarter had soared in recent days.
Expectations for this company were really high. I mean, you saw a lot of analysts publishing optimistic notes leading up to it. The stock has been on a tear over the last few months, and so I think there's almost no way that it was going to live up to that. You know, you see the results that it basically doubled the subscriber estimates.
That's pretty strong.
So I'd say one is just expectations and the other is maybe that there was some sensitivity around the forecast. You know, the revenue forecast is actually pretty strong. It's going to grow faster than it did in the first quarter, but it's said its subscriber growth would tick down a bit in the second quarter.
Bloomberg's Lucas Shaw says Netflix will stop reporting paid quarterly membership and revenue per subscribers starting with the first quarter of twenty twenty five.
Well, Nathan.
The pushback continues from Fed officials on cutting rates too soon. New York Fed President John Williams says economic data will determine the timing. He was asked about the possibility of raising rates.
It's not my baseline, my expectation right now. It's you know, interest rates are in a good place, and eventually at some point would want to lower interest rates as the economy really gets to the two percent inflation that we're headed towards. If the data are telling us that we would need higher interest rates to achieve our goals, then we would we would obviously.
Want to do that.
New York Fed President John Williams comments, We're echoed by other Fed officials. Atlanta FED President Raphael Bostak says he's comfortable keeping rates. Study Minneapolis president Neil Kashkari told Fox that Fed could keep rates where they are all year.
Karen, let's turn back to some corporate news now. Paramount Global could be getting a new buy outlook from Sony and Apollo Global Management. We get more on that from Bloomberg's Doug Prisner.
We're told in the last week, the head of Sony Pictures Entertainment, Tony Vince Aquera, held talks with Apollo about teaming up on a bid. The New York Times says the group would offer cash for shares in Paramount, taking the company private through a joint venture. Now Sony and Apollo have not submitted an official offer. Paramount is controlled by Sherry Redstone through a family business called National Amusements, and at present, Paramount is an exclusive merger talks with
Skydance Media and Independent. Members of Paramount's board are weighing the sky Dance proposal. In New York, I'm Doug Prisoner, Bloomberg Radio.
All right, Doug, Thanks, and shares of Paramount Global are hired by more than ten and a half percent in early trading well.
Apple has removed some social media services from its Chinese app store Nathan, including Metas, WhatsApp and threads thous, in response to orders from Beijing to close more loopholes in the country's long standing Internet firewall. Apple has consistently complied with one of the world's most rigid internet censorship regimes. It says the Cyberspace Administration of China order the apps
removed over national security concerns. And it's 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 John Tucker. John Good Morning, Good Morning, Karen.
New York City police have removed a pro Palestinian protest encampment at Columbia University, arresting more than one hundred demonstrators in the process. Mayor Adams says the city was asked in writing by university officials to remove the encampment.
Klun University's students have a proud history of protests in raising their voices. Students have a right to free speech, but do not have a right to violate Universe city policies and disrupt learning on campus.
The students have been protesting since early Wednesday opposing Israeli military action in Ganza. The Biden administration today finalizing a plant to prevent oil development across more than half the US government's Mammoth Petroleum Reserve in Alaska. The story from Washington and Bloomberg Steve Hotisk.
This move is among a string of actions by President Biden to kurktailed development on federal lands and wall off more than forty one million acres for conservation. It comes as Biden seeks to gain support from young climate minded voters after disappointing some last year by authorizing Conneco Phillips massive Willow oil project. The administration is also moving to block road construction essential to opening a copper mine in
the state. The moves have drawn condemnation from oil, gas and mining interests, who said the Biden administration is locking up resources essential for fueling America's energy needs today and in the future. That includes, they say, critical minerals for batteries and other technology in Washington. Steve Potisk Bloomberg.
Radio Ukraine says at least to eight civilians were killed more than twenty injured in a strike in the country today after Russia launched another barrage, straining the country's dwindling air defenses, and San Francisco is the latest US city preparing to receive a pair of pandas from China in a continuation of Beijing's famed panda diplomacy. San Francisco mayor London Breed announcing the pandalona in Beijing this morning global news twenty four hours a day, whenever you want it
with Bloomberg News Now. I'm John Tucker. This is Bloomberg, Karen and Nathan.
All right, John, thank you, and it's time now for the Bloomberg Sports Update with Dan Schwartzman.
Dan, good morning, Good morning, Karen and Nathan. The final two NBA playing games are coming up tonight Chicago. He's on the road of the Miami Heat tip off his seven o'clock PM. Winner of that will face the Boston Celtics in Game one on Sunday. Then later on it's the Sacramento Kings at the New Orleans Pelicans. The winner of that one will go as the eighth seed in the Western Conference at faci Oklahmoma City Thunder also on Sunday.
The New York Knicks get underway on Saturday as they're home for the Philadelphia seventy six Ers in game one of their Round one matchup. Sixers head coach Nick Nurse talking about the Knicks, I think.
They're for real. I think they're really good. I think they're they're fast. I think they can shoot. I think they hit the glass. I think they guard you. I think they've earned that seed. They've played really well and beaten a lot of good teams, so we'll have our work to do here in the next couple of days to get ready for him.
That's courtesy of CBS three in Philadelphia. Light schedule in Major League Baseball last night, the Yankees were off the Giants shutting out the Diamondbacks five nothing at home. It was Red Sox losing a family Park to the Guardians five to four. Coming up tonight, the Yankees open up a weekend series in the Bronx as they host the Tampa Bay Rays. That men's opening up the series on the road in Los Angeles. Giants are home again for the Diamondbacks. The Red Sox are on the road at
the Pirates. It's the National hosting the Houston Astros, while it's the Baltimore Orioles. They are on the road at the Kansas City Royals. The NHL Playoffs gets underway on Saturday, as the Islanders open Round one on the road at Carolina. It's the Boston Bruins their home for Toronto also on Saturday, while the New York Rangers, the winners of the President's Cup with the best record in the NHL, they open up their series versus the Washington Capitals on Sunday at
Madison Square Garden. Rangers captain Jacob Truba assessing his team.
Great lineup, great goaltenders front to back. I think we've got a deep lineup and just continue to play our game, and we've been good at bouncing back with adversity. There's going to be at versity as any times we're momentum swings. That's the playoffs.
That's courtesy of Rangers dot Com. That's your Bloomberg Sports Update. I'm Dan Schwarzman, Karen and Nathan.
All Right, Dan, thank you. SMP futures down half percent or twenty five points down, futures down four tenths of percent or one hundred and fifty seven points. Nasdaq futures down three quarters of a percent or one hundred and thirty points. In the ten year Treasury yeled four point five eight percent.
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.
Middle East tensions are once again in the foreground with US officials saying Israel has launched a retaliatory strike against Iran, less than a week after Tehran's barrage of missiles and drones into Israeli territory. For the very latest, we are joined now by Bloomberg's Europe, Middle East, and Africa news director Rosalind Matheson Roz, Good morning. Can you get us up to speed on what we know at this point about this reported strike?
Well, as you were saying, what we know is that US officials tell us that we did have this retaliatory strike where Israel has launched missiles against Iran. Local media reports say they were missiles that were five potentially from Israeli planes. These were larger areas in Iran, in the west and central of Iran. It's a town called a city called Isfahan that's located in a ring of air bases, military bases, but also some key nuclear facilities for Iran.
It seems like the nuclear facilities were not targeted, were not hit, and are functioning as normal. But what may have been targeted was an airbase in the region, and that would obviously be about sending that message in responses you say to Iran striking Israel about a week ago for the first time from Iranian soil, and so we've kind of entered this era of tip for tat retaliation reprisals against each other. Both of these actions do seem, however,
to be somewhat calibrated. They didn't target civilian populations and they have not targeted, in this case, Iranian's nuclear facilities. So the question is is this enough to keep this conflict from simmering over Do they both look at each other and say this is not enough to set off the regional conflict that markets and others have been fearing might happen point rise.
As you mentioned, Israeli media are saying this was a missile strike. We're hearing reports from Iranian state media that they're calling it a drone attack and that the explosions over the third largest city in Iran, Isfahan, were caused by Iran's air defenses. What does that say about how this could potentially reduce tensions going forward.
Well, it's interesting you say, Iran seems quite keen, and there's a bit of heaterd rhetoric coming from Iran immediately, as you can imagine, but also the sense that they don't want to overplay this.
There's certainly in a way downplaying it on their state media.
On their broadcasting this morning, they're showing footage of Isfahan, of their nuclear site, looking business very much as usual, traffic moving along and so such, and they're saying there was some drone action, but their air defenses were activated, whereas Israeli media say this was actually a missile strike from Israel.
But it does point to that thing.
As you say, even though we've got strong posturing from Israel and Iran all of this, and we've got Iran's proxies activated in the region and Israel is basically fighting those proxies as well, that everyone knows if this does bill into a full bare regional conflict that pulls in potentially other actors, potentially the US.
You know, real impact on things.
Are all supplied globally that we're kind of moving into unprecedented territory then, and even Iran knows that that would be self defeating.
And when we have Iran sort of downplaying this and reports from some hawkish officials in Israel, like the National Security Minister going on x and describing the attack as weak, what does that say about how Israel could go forward with this, Well, there is.
That difficulty, and domestically in Israel.
I mean the Israeli Prime Minister Bena, who basically made a bet, he tied his fortunes to the far right in Israel to stay in office, and now he's having
to deal with the implications of that. And even you know, in his war Cabinet, in his ministry, he's got those elements who are pushing him, pushing him to take further action, but they're also saying, you need to keep your focus on the main thing here for Israel, which for them is still the conflict in Gaza, the conflict against Tamas and Gaza, and also fending off Hasbalah from the north in Lebanon.
Europe. Being too many fronts here it becomes difficult.
And some of those voices you know that we're hearing this morning, saying that whatever Israel did was weak, that needs to be more. They aren't actually in the war cabinet, so they're not they're making the military decisions, but they are pushing him from the sidelines. The question is, you've also at the US and others urging restraints. So all these competing factors going on for Benjamin Netnyahu.
But again there seems to be a lot of messaging this morning on is.
Rerad ATV about the need to keep focused on Israel's goals when it comes to its war in Gaza, and.
Just thirty seconds left, where does this leave the war in Gaza now?
Well, Israel insists very much still its attention is to mount that offensive inside Raphae in the south. That's where we've got a lot of Palestinian civilians clustered, and it's going to happen sooner.
Rather than later.
We'd obviously get telegraphed because Israel have to encourage people and move them out of the way to do so. But certainly there's no sense from Israel that they're being deterred in that goal.
So that's probably the next thing to look for.
At some point, do we see that offensive beginning rougher in the south New Egypt.
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