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Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today, Karen.
Middle East tensions maybe ramping back up. Israeli military officials are saying they have no choice but to respond to Iran's drone and missile attack over the weekend, but the US and European allies are urging Israel to avoid the kind of tit for tat that could spark a wider war here. State Department spokesman Matthew Miller.
Israel is a sovereign country. They have to make their own decisions about how best to defend themselves. What we always try to do is provide our best advice as a longtime friend of Israel and a longtime ally and partner of Israel. And that's what we've done since October seventh, across a broad range of fronts. It's what we have done over the weekend.
Matthew Miller at the State Department says the Biden administration has put more than five hundred sanctions on Iranian entities to hold Tehran accountable.
But for Israel, Nathan, the question isn't if the country response. But how more on that From Bloomberg's Rosalind Madison.
There's a wide range of possibilities here. From a direct attack, as you say, from Israel on Iran, that would not be unprecedented, but that's one option for them, targeting military sites, perhaps even nuclear.
Sites in Iran.
Of course, there's a lot of concern about Iran's nuclear program, or does it go for something instead, like going for one of Iran's proxies in the region. We're talking about the Huthis in Yemen, We're talking about Hamas in Gaza, Hezblah in Lebanon. Do they go through one of those proxies to retaliate.
Bloomberg's Rauslin Madison reports are timing of an Israeli response also is not clear. Iran's deputy Foreign Minister is warning any Israeli counterattack would be met with a more severe, faster and immediate blow. He says it would take seconds for his country to launch another strike.
Well, Karen, the turmoil in the Middle East has added new urgency to passing Foreign aid in the House after months of inaction. Bloomberg's Ed Baxter reports votes could come this week.
Speaker Mike Johnson is planning separate votes this week on new aid to both Israel and Ukraine. This in an attempt to assemble fragile coalitions to speed weaponry to both places.
We have a terrorist in tyrants and terrible leaders around the world like Putin and g and in Iran, and they're watching to see if America will stand up for its allies in our own interest around the globe, and we will.
Now, his party majority is very slim, and he may need Democrat support, and he very well may get it. The mpasse over eight has been dragging on since October. At Baxter Bloomberg.
Radio, all right, ed, thank you now to the historic criminal case involving former President Donald Trump. Jury selection continues today. Bloomberg Law host June Garasso has the latest from New York.
Trump's criminal trial got off to a slow start. The jury selection process began hours late because of a slew of motions. The trial judge had to handle first, and then more than half of the first pool of ninety six perspective jurors was dismissed after saying they couldn't be fair and impartial. Court adjourned for the day with zero jurors chosen, and the judge saying we're way behind schedule. Jury selection resumes this morning, June Grosso, Bloomberg Radio, All right, June.
Thank you.
While Trump deals with those legal issues, President Biden's hitting the campaign trail in his childhood home state of Pennsylvania. The Biden campaign says the trip aims to highlight the differences between the president's tax and economic agenda and the policies of Trump, who oversaw tax cuts for the wealthy and corporations. Biden's three day trip includes a visit to Scranton and events in the Pittsburgh area, where Nippon Steele's deal to buy United States Steel has rankled union allies.
The president will close out the trip Thursday in Philadelphia.
Well.
Turning to Wall Street Now Nathan. First quarter earnings for the nation's biggest banks wrap up later this morning with Bank of America and Morgan Stanley. Bloomberg's Jeff Ellinger has a look at what to expect for.
Bank of America. A key number to watch net interest income, which alone is forecast to be about fourteen billion dollars, about two percent lower than a year ago. Consensus calls for total revenue of twenty five point forty three billion and adjusted earnings per share of seventy seven cents. As for Morgan Stanley, a jump in investment banking activity may help offset and expected pullback in earnings for the ninth quarter in a row, although the pace of declines likely slowed.
Consensus calls for revenue of fourteen point forty six billion and adjusted earnings per share of a dollar sixty six. Jeff Bellinger, Bloomberg Radio, Jeff.
Thank you well after another strong reading on retail sales. Another FED official says there's no rush to cut interest rates here. San Francisco FED President Mary Daily added event at the Stanford Institute for Economic Policy Research, the.
Worst thing we can do right now is act urgently when urgent isn't necessary. You know, the policy is in a good place. We're in the ready position. We can respond as the economy evolved. The labor market's not and giving us any indication is faltering, and inflation is still above our target, and we need to be confident it is on path to come down to our target before we would feel the need and I would feel the need to react.
San Francisco FED chief Mary Daily votes on monetary policy this year well.
In Europe, Nathan Britain's unemployment rate rose unexpectedly to a six month high. We get more from a UK economic correspondent Lizzie Burden.
Unemployment was expected to tick up, Actually it went from three point nine percent to four point two percent rather than just four percent. But on the other hand, you had average weekly earnings expected to tick down from six point one percent to five point eight percent. Actually they only went to six percent, so hotter than I expected. So it's mixed signals here. From the labor market.
Data, Bloomberg's Lizzie Burden says the labor numbers come ahead of tomorrow's March reading on consumer prices.
We got some new economic data out of Asia Karen China's economic growth beat expectations in the first quarter as factory output led the expansion. Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong.
GDP rows five point three percent year on year. That's higher than the estimate of four point eight percent. In March, industrial production was up four and a half percent from a year earlier, versus a forecast of six percent. Retail sales rose three point one percent, missing an estimate of four point eight percent. China's recovery has been out of balance. Manufacturing holding up, but the property crisis is denting both
household and business confidence in Hong Kong. Brian Curtis, Bloomberg Radio.
All right, Brian, thank you, 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 A Bloomberg's John Tucker. John, Good Morning, Good Morning, Karen. New York finally has a budget. Deal exceeds two hundred and thirty three billion dollars, and sources to say it includes the most sweeping change in housing policy in years. Details in this report from Bloomberg's Charlie Peenllett.
Those sources say the tentative spending plan includes a tax break for affordable housing construction, alongside new restrictions on evictions and rent increases for market rate renters. Details of the budget, which was originally due to April first, our subject to
change before final approval. Soaring rents and upcoming elections are key factors driving state lawmakers to forge an agreement with Democratic Governor Kathy Hogel, A year after she failed to advance a proposal aimed at building eight hundred thousand new homes over a decade. In New York, Charlie Pellett Bloomberg.
Radio House, Republicans who will want the articles of impeachment against Homeland Security Secretary Allejudro Maiorchis over to the Senate today It kicks off at trial in that chamber. Republicans accused my Orchis of mishandling the crisis at the southern border. Vice President Harris returning to the campaign trailed to underscore the stakes of the election. The Vice President, speaking in Las Vegas a week after the Arizona Supreme Court upheld an abortion ban from eighteen sixty four.
What we are seeing in these states that we were talking about are Trump abortion bans, and he can't get away from that.
In the wink of the Arizona Supreme Court decision, now California is bracing for an influx of women seeking abortion. The Supreme Court will weigh the legality of charges brought against hundreds of people in connection with the attack of the US capital. The question for the justices is whether law passed as part of the Sarbanes Oxley Financial reforms can be read to cover the January sixth riot. Hundreds of people, including Donald Trump, have been charge with obstructing
and official proceeding. Global news twenty four hours a day and whenever you want it with Bloomberg News Now. I'm John Tucker. This he is Bloomberg, Nathan and Karen.
Sorry, John, thank you, and it's time now for the Bloomberg Sports Update with John stas Shower.
John, Good morning, Good morning, Caaren. A terrific regular season for the Rangers. Right from the start. They won eighteen of their first twenty three games. It ended at the Guard with a four to nothing shut out of Ottawa, and the Rangers finished with a club record one one hundred and fourteen points. That's the most in the NHL. Their first round opponent could still be one of four different teams Washington and Detroit at eighty nine points, Pittsburgh
has eighty eight, Philadelphia eighty seven. With one game left, Islanders are in the playoffs fifth time in the last six years. They finished seven and one down the stretch, beat the Devils four to one. The Islanders will face Carolina in Round one. Bruins failed to clinch their division lost to nothing in Washington. The Mats, who began the season ze five and now eight and eight to come from behind sixty three win over the Pirates at City Field.
The Mets allowed only three hits. Yankees had only four, so did the Blue Jays, but Toronto won three to one. Chris Bassett beat Louis Heal, the Yanks first two game losing streak of the season. The Big Yankee news the retirement effective immediately of John's early in the radio Voice of the Ink the last thirty six years. He's eighty five, says he's tired. He'll be honored at the stadium on Saturday.
In Brooklyn, they held the WNBA Draft. Has there ever been any draft with less suspense over who the first pick will be? Caitlyn Clark headed to the Indiana Fever.
All this has come with just the person that I've i am and the player that I've been able to be, And that's exactly how you want to go into the WNBAS. Don't change anything that I've done, obviously learn it's at finding ways to get better. You know, people are going to expose my weaknesses. But that's an amazing thing about it. That's the challenge that I wanted.
The WNBA announced they not only is San Francisco getting the team next season, they hope to add three more expansion teams by twenty twenty eight. Offseason workouts with the Giants and Daniel Jones says he'll be ready for the start of training camp back to the torny ACL. He also says he's not concerned that the Giants might draft a quarterback. Two weeks some Thursday, Giants had the sixth pick. John Stashedware Bloomberg Sports, Karen Nathan all.
Right, John, thank you, SMP. Futures that'll change now. So we're a NASDAK yours down. Feutures down to tenth of a percent or forty points, and the ten year treasury yield is that four point sixty four percent.
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I'm Nathan Hager. The world is waiting for Israel's response to Iran's weekend drone and missile attack, even as Allies ramp up their calls for restraint and avoiding the kind of tit for tet response that could spiral into a wider conflict in the Middle East. For more, Bloomberg Israel Bureau chief Ethan Bronner is back with us from Tel Aviv. Ethan, good morning. We're hearing Israeli military officials say they have no choice but to respond. What is the appetite in Israel for a counter attack.
It's a bit diffuse. I mean, they actually published a poll on one of the Channel TV channels this morning showing that it's about a third to third to third, meaning do it right now, do it later, don't do it. So it's not like there's some overwhelming public pressure for a response. I think that a lot of Israelis were grateful for the cooperation the United States, UK and France and even some Arab neighbors gave in stopping that big
attack on Saturday night. And they've kind of been in the doghouse in terms of how the world has seen them because of their war in Gaza, and I think that that has been satisfying to be embraced again and to see the coalition as the way forward. But you know, at the same time, they do worry this was the first time that Iran has ever shot from its own soil at Israel, and the sense that if you don't
respond that somehow you're telling them you're weak. So that's kind of the debate that's going on all day, all night here, and I don't know how it's going to sort itself out now.
Of course, the debate that allies are trying to add to this is that cooler heads should prevail. We've heard from the White House saying that Netanyahu should quote take the win. How much is that playing into this, Well, I think.
It is playing into it. I mean, I don't think it's unimportant. I think that as I say that, the sense that the United States is back again embracing the Israel and sharing in its defense needs and so on is important to people. It's the most important alliance that this country has.
But you know, there's this kind.
Of old debate here, which is do we want to be loved by our friends or feared by our enemies. If we have to choose, we'll choose feared by our enemies. Now, the remaining question is is hitting back the best way to be feared? And I think that's part of the debate.
Too interesting We've also heard from Israeli military officials who've spoken to Bloomberg Radio saying that they've presented another a number of options to the war cabinet. What could a potential Israeli response look like at this point?
Well, I mean, there are all these range of options, right from doing nothing to shall we say, some kind of a quote unquote soft attack like a cyber attack.
Then maybe a hit upon a military facility somewhere, or a hit upon facilities belonging to proxies e. Lebanon or Syria or Iraq. Those are rather than, of course, you know, an assassination of some kind or indeed some kind of attack on their nuclear facilities, which seems rather exceptionally unlikely. But you know, those are the ranges. So and all that's being debated, and.
The US has said that it won't support Israel when it comes to a direct counter attack. Among those options. Is there a sense within the war cabinet that there are options that the US and its allies would get behind.
There probably is, but they haven't shared it with me, and I've been trying to find out. My sense is that they do want to not cross the US in what they do. They want it to be seen as something that the US can accept and permit, and so that's where they're going through that. I think, you know, if there were a cyber attack, if there were an attack on proxies or something, you know, I'm assuming that the Americans would not necessarily say absolutely no way, But
I don't know. You know, those are debates that are going on at a very high level, and I think that there's probably a great deal of uncertainty in the US administration and in the Israeli government about what should or what could happen.
This is Bloomberg Daybreak Today, your morning brief on the story's making news from Wall Street to Washington and beyond.
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And I'm Karen Moscow.
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