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Good morning.
I'm Nathan Hager and I'm Lisa Matteo. Here are the top stories we're following today, Lisa.
These major moves and global markets come after Israel launched waves of air strikes against Iran's nuclear program overnight. The operation targeted Iran's nuclear scientists and generals, killing a number of high ranking military officials. Israeli Prime Minister Benjamin Natanyahu announced the strikes in an overnight message.
Israel will never allow those who call for our annihilation to develop the means to achieve that goal. Tonight, Israel backs those words with action. We struck at the heart of Iran's nuclear enrichment program. We struck at the heart of Iran's nuclear weaponization program. We targeted Iran's main enrichment facility in Natan's We targeted Iran's leading nuclear scientists work on the Iranian bomb. We also structed the heart of Iran's ballistic missile program.
The country's Defense Minister, Israel Katz, said he's declaring a state of emergency after what he described as a preemptive strike against Iran.
Well, Nathan now comes the response from Iran Israel says Iran launched over one hundred drones toward Israel and that their air defense systems are responding. In a televised address, Iran's Armed Force spokesperson said Israel and the US will receive a quote harsh blow to Iran. University professor Muhammad Mirandi says Iran has no other option.
The only way forward is to make sure that this Raeli regime regrets attacking Iran. Iranians and infrastructure that is legitimate and which is monitored regularly.
Professor Muhammed Morandi at Tehran University and Iranian state media say the strikes killed the head of Iran's Revolutionary Guard Corps and the military's chief of staff. At least two other senior Revolutionary Guard Corps officials.
We're also killed.
And hours before the attack, Lisa. President Trump said he hoped Israel would not strike Iran.
Well, I don't want to say eminent, but it looks like it's something that could very well happen. Look, it's very simple, not complicated. Iran cannot have a nuclear weapon. Other than that, I want them to be successful. I want them to be Trum will help them be successful. We'll trade with them. We'll do whatever is necessary.
The President Trump's words appear to have gone unheeded.
Secretary of State Marco Rubio put out a statement after the attack saying the US was not involved and warned Iran not to retaliate against American interest in the region. Later, President Trump told Fox News he was not surprised at the attack and said he had spoken with Prime Minister Natanyahu several times in recent days. It's his reaction around the world pours into the escalation Lisa. Former NATO Supreme Allied Commander in Europe Wesley Clark says Israel forced America's hand.
President Trump does not want a war, he said that, but also he does not want on Iran to have nuclear weapon. So I think Prime Minster Mill who has taken the decision away from President Trump at this point.
Retired General Wesley Clark spoke to Bloomberg overnight. These Israeli strikes come after the US ordered some staff to leave its embassy in Baghdad and authorized families of military service members to move out of the Middle East.
Only then we saw immediate major moves in the markets following the attacks. At one point, oil surge thirteen percent. Right now Brenkrud at seventy three dollars a barrel, up about four percent. Defense stocks on the move this morning. Shares of Lockeed Martin are up four percent, while North Grumman are up two percent. Oil related stocks also rising. We have Halliburton, Kinego, Phillips, and Schlumberger are at least up four percent.
Well, We'll continue to monitor the situation in the Middle East, of course, Lisa, But let's move now to the latest on the anti deportation protests in Los Angeles. The situation does appear calmer now after three nights of curfews in the downtown area where demonstrators had been clashing with police. Last night, California Governor Gavin Newsom touted a legal victory and his fight with President Trump overt National Guard deployments in the city.
Courts have ruled on the Guard. They will be back under my command and he'll be relieved. Donald Trump were believed of his command at noon tomorrow.
On that comment from Governor Gavin Newsom may have come too soon, though, a federal appeals court put the judge's order on hold, allowing the Trump administration to continue using the military to deal with the protests. Another hearing on the case is now set for Tuesday.
Well.
Meantime, in India, investigators are searching the site of yesterday's deadly Air India plane crash. Prime Minister Nerenda Mody Well he met with the loan surviving passenger of the crash that killed two hundred and forty one people on board and several people on the ground. The London bound Boeing seven eighty seven struck medical College hostels when it fell into a residential area in northwestern India just minutes after takeoff. Here is Air India CEO Campbell Wilson.
I would like to experience our deep sorrow about this event. This is a difficult day for all of US India and if it's now focused entirely on the needs of passengers, crew members, their families and loved ones.
Air India CEO Campbell Wilson. Local media say at least one of Boeing's Dreamliners black boxes had been found. It's unclear whether that black box is a flight data or cockpit voice recorder.
Well back here in the US, Lisa local politics are front and center in New York City once again, the race for mayor is heating up, and last night, the Democratic candidates held their second and final debate ahead of this month's primary. Bloomberg's John Tucker's here at the round up.
Good morning, John, Good morning Nathan. The thirty three year old socialist state as semulman Johan Mamdani has become one of the top contenders in the race. He also found himself the target of jabs from former Governor Andrew Cuomo.
I'm not mister Mandani, I'm not anti Semitic, I'm not divisive.
I didn't say that would boycott Israel.
Mumdani tried to knock Quomo off his perch atop the polls.
Millions of dollars in funding from the very billionaires who put Donald Trump back into office.
And then City Controller Brent Lander took this shot against Cuomo.
Everybody here knows that you sexually harassed women.
Cuomo, who's in the midst of a political comeback after resigning as governor over a sanxual harassment scandal, has long been the favorite the city's Democratic mayoral primary June twenty fourth, because in some ways narrowed into a contest between Cuomo and Mom Danny. The winner of the Democratic primary is going to face off in November against incumbent mayor Eric Adams, who's opted to run as an independent. And in the interest of disclosure, Michael Bloomberg, founder and majority owner of
Bloomberg LP, has endorsed CUOMO. I'm John Tucker, Bloomberg Radio.
All right, thank you, John. Let'stener back to the markets now. With a focus on tech. The CEO of Advanced micro Devices says its latest AI processors can top and vidios. At a company event yesterday in California, Lisa Sue said the new installments in AMD's MY three fifty chip series are faster than Nvidia counterparts and also represent major gains over earlier versions. She expects the AI market to surpass
five hundred billion dollars in the next three years. AMD's MI I four hundred series comes out next year.
Yeah, and sticking with the AI theme, Lisa. Meta Platforms has finalized it's fourteen point three billion dollar investment in Scale AI and has recruited the startup.
CEO.
Scale's Alexander Wang will join Meta's super intelligence unit we told you about earlier this week, focused on building AI that performs as well as humans. Wang will also remain a board member at Scale. This is all part of Meta CEO Mark Zuckerberg's efforts to make AI a top priority. He's earmarked tens of billions of dollars for artificial intelligence related infrastructure and hiring.
Now for a look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael bar Good morning, Michael, Good.
Morning, Lisa. The judge in Harvey Weinstein sex crimes reed trial declared a mistrial on the remaining charge after the jury four person declined to deliberate again. The jury found the former movie mogul guilty of one criminal sex act, but not guilty on another. Manhattan District Attorney Alvin Brag says his office is ready to go again.
We immediately informed.
The court, so we are ready to go forward to trial again on that charge. After conferring with just Command, Einstein denies all the charges. In the middle of his sex trafficking and racketeering trial, a new lawsuit has been filed against Sean Diddy Combs. A former girlfriend is now suing, alleging she was coerced into traveling to see the rap mogul and having sex with him. Reaction continues after a
US senator was forcibly removed from a news conference. Alex Padilla of California interrupted a news conference in Los Angeles being given by Homeland Security Secretary Christinome. Senator Badilla approached the podium, was stopped by security, and then put pushed outside and handcuffed. Reaction from both sides of the political lieout has been swift. Democrats criticized the move, and Senator Badiaz says this was indicative of overly harsh tactics.
I was there peacefully.
At one point I had a question, and so I began to ask a question. I was almost immediately forcibly removed from the room.
I was forced to the ground.
Secretary Nome, I don't even know the senator. He did not request a meeting with me or to speak with me. So when I leave here, I'll have a conversation with him and visit and find out really what his concerns were. I think everybody in America would agree that that wasn't appropriate.
Padilla says he tried to ask Noome about people arrested with no criminal record. Global News twenty four hours a day and whatever you wanted with Bloomberg News Now Michael Barr and this is Bloomberg Lisa.
Thank you, Michael. Time now for a Bloomberg Sports update. For that, we bring in John stash Out.
Good morning John, Good morning les.
So the ratings have not been good, but people are missing a heck of a Stanley Cup final and there'll be at least two more games, maybe three. The third overtime game of the series didn't look that way when Florida led three nothing in the second period. Edmonton then led four to three in the final minute of regulation when the Panthers Sam Reinard tied the game, so it was once again off to sudden depth.
Breaking three is try suddle to the next.
Sid play on try suddle Chris time this series, what is fourth oh t Winter of the Playoffs Final star Edmonton five Florida four in fine over time.
Jack Michaels is the radio voice of the Oilers, Dry titles four overtime goals as a record. He's at two in this series.
At two to two.
They're heading back to Western Canada for Game five tomorrow. Game four of the NBA Finals tonight, Indiana up to one, hosting Oklahoma City. JJ Spawn thirty four years old, yet he's never finished the top twenty of a major. Had only qualified to play the US Open once before, in twenty twenty one.
Spawn for a bogie free four under par.
Sixty six to leave the US Open at Oakmont by one shot. Two time Open winner brooks Keepka, who's been quiet in recent years, only two shots behind. Scottie Schefler, had six bogies, shot three over. Rory McElroy had a forty one on the front nine. He is plus four. Yankees and Royals sat through a rain delay in cac but finished the series with The Yanks.
Scored an unearned run of the eighth inning to win one.
Nothing so A. Yankee sweeped their second against the Royals. They played tonight in Boston. Dropped two of three of the Red Sox. Last weekend in New York, Matt's finished a sweep of the Nationals four to three, improving to twenty.
Seven and seven.
At City Field, Jeff McNeil three run homer in the first enning, Brandon Nimo solo shot in the fifth.
Code I Senga got the.
Win, but heard his hamstring and Senga was put on the injured list, John Stshawer, Bloomberg Sports, Lisa and Nathan coast to coast on Bloomberg Radio, nationwide on Sirius Exam and around the world on Bloomberg dot Com and the Bloomberg Business app.
This is Bloomberg Daybreak. Good morning. I'm Nathan Hager.
On the morning after a major escalation in the ongoing conflicts in the Middle East. Overnight, Israel launched a wave of attacks on Iran's nuclear and ballistic missile programs in what Prime Minister Benjamin Natanyahu is calling Operation Rising Lion.
I was Prime Minister, I've made it clear time it again. Israel will never allow those who call for our annihilation to develop the means to achieve that goal. Tonight, Israel backs those words.
With action, Israeli Prime Minister Benjamin Natanya, who spoke in an overnight addressed to his nation last night. This morning, we are joined from our London studios by Bloomberg News Jerusalem correspondent Dan Williams and Bloomberg Horizons anchor Jumana Bursechi.
Thanks to both of you for being with us.
Dan, I'll start with you, what do we know so far about the extent of the attack and the damaged Good morning.
Good morning.
This was certainly unprecedented.
It was certainly wide scale, I think, to judge by what these readies are saying, there's more to be done as far as they're concerned. The primary target was the Iranian nuclear program, which they say was on the verge of a potentially irreversible development in.
The direction of weaponization.
However, they also targeted senior personnel, both from the nuclear program and from the military, the chief of staff they had of the IOGC. This is something that everyone was expecting on a strategic, perhaps theoretical level, going back almost twenty years, there was a time when many speculated that Israel was actually bluffing about doing this, given operational limitations and the like. Now it appears that Israel has delivered and is prepared to deliver even more.
Perhaps not a surprise in terms of whether this would come, but maybe a surprise in terms of how quickly it might have come at this point. Jumana, what is the risk of wider war now? What is the risk of retaliation from Iran?
There's definitely a major risk of retaliation from Iran. They have vowed to fight back, and the response would be quite harsh in nature. But then you also have to acknowledge the fact that the Iranian regime is clearly on the back foot. Several of their very senior commanders were taken out on this strike. Many of their main facilities, NUCRE facilities were hit. But I should also just reiterate
not entirely defunct now they have been damaged. But this is why on the Israeli side, they're saying that there is more work to be done so that they can ensure that Iran don't go down the route of further nuclear enrichment. But then there are several ways Iran could response. They sent over one hundred drones this morning, most of them intercepted, it caused them to damage. They could also
start mobilizing their proxies around the region. There were some concerns that you might start seeing attacks come through from Syria and from Jordan. Earlier this morning their reports that again several drones were shot down over Jordanian airspace as well in Lebanon. There's concern that perhaps they would look
to reactivate Hezballah. But all of these proxies are operating in a diminished capacity, with many of their military and also influence waning in the region given the events of the last couple of months.
But one also factor.
That we've been talking about that's very crucial for global markets is perhaps what Iran could do on the oil front and potentially causing disruptions on the straits of Hormos, which is why initially you saw that ten percent plus reaction in the price of oil today so far though no oil infrastructure has been had.
Now we have also heard from Iran that they're saying that Israel could not have carried out an attack like this without either US coordination or US support in terms of backing of support for Israel. Dan, what was Israel saying at this point about US potential involvement in what's been going on here.
I think there's a pro forma at least effort by both the allies to place daylight between themselves when it comes to this strike. However, there are geographical realities that are inescapable and unignorable. Israeli planes would have to traverse one at least a cent COOM member country sent COOM being the US military command involving countries like Saudi Arabia, the Gulf principalities, and it's safe to assume that Sentcom
would have been aware of the planes coming in. Those countries would have been aware and at least gave tacit assent to these planes conducting the mission. There's also the issue of diplomatic cover defense cover. There's a big difference between the Americans saying they had no knowledge of this and actually putting their foot down and perhaps imposing sanctions if they were truly opposed to it. For now, there's every indication they were not opposed to it. They were
seeking to diss themselves, perhaps sit on a fence. The big test I think is if and when the Iranian escalation, sorry the Ranian retaliation escalates, whether Israel be left to fend for itself alone, whether the United States and other partner countries will step up assists in defense as they did twice last year.
What about the possibility of other parties in the Middle East getting involved in this conflict Jumana.
Is there a risk of that?
I think it was really notable this morning that one of the first foreign ministries that put out a statement was the Kingdom of Saudi Arabia. And of course we have to go back to twenty nineteen. You will recall that there was a healthy attack on Upcake, which is one of the key mid refineries in Saudi Arabia, in response to global tensions at the time, and there has been a notable improvement in the diplomatic relationship between Saudi
Arabia and Iran since then. That was broken together by China in March of twenty twenty three, and since then, what Saudi Arabia had been consistently saying is they want to see de escalation in the region. And so this morning they put out at the Foreign Ministry put out a statement saying that they condemn these attacks and once again would like to see the region de escalating. UAE similar tone as well, so from other major Gulf Arab states.
What you are seeing is an inclination to make things better, to bring down the temperature, as opposed to add fuel to flyer. But of course if there is, if there are further attacks on Israeli soil, then there's gonna be a question as to which countries in the region may offer their airspace or may look to implicitly allow that
to happen. And I think we are entering into a critical couple of days now to see exactly how Saudi Arabia UAE Katar will respond if Iran continues along the lines of retaliation and as they have vow to do so.
Dan, we have about a minute left. Is there a political dimension to this? We just saw Israeli Prime Minister NETANYAHUO survive a vote to dissolve his government this week.
I think this certainly is.
There may even have been low scale US intervention in that political crisis to persuade coalition members who thought of leaving the coalition this was not the time to do that, hinting that there were strategic matters afoot. Certainly, if this succeeds, and time will tell if it has, this will help his standing. It's worth remembering that he's largely shaped his legacy around the question of Iran, which Israel sees as
its chief adversary, the chief threat to its existence. And if this succeeds in Israeli terms, that may be enough to polish his legacy, which was severely dented by the October seventh attack, which really set into motion this entire regional war.
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I'm Lisa Matteo. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak