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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 new risk in the Middle East. A ship was attacked on the Strait of Horror Moves yesterday. It is the first reported strike since the interim peace deal between the US and Iran went into effect last week. We get the very latest from Bloomberg Middle East correspondent Abira bu Omar in Dubai.
What we know from American sources is that they're not pointing the finger just yet at Iran, but that could
be very likely the case. And it could be because this ship, the middle sized ship that had passed through the Strait of Removes, passed through through the waterway that is closer to the Gulf of Alman or the part of the strait that hugs the coast of Ahman, while Iran has been trying to maintain the movement through the coasts that are closer to its borders, to be able to sort of maintain the movement in a way that works in accordance with its own rules.
Bloomberg's a bierrabo Omar reports The attack has led some ship owners to review their exit plans, but traffic does continue to move in both directions through the strait. President Trump has not directly addressed the episode, but he says Iran is focused on the peace process.
They want to make a deal with us very badly, and we probably will.
I think we will. But the straighter is open.
President Trump spoke at a White House event with farmers where he announced an eleven point one billion dollar aid requests for the agriculture sector. President says Iran will use its unfrozen assets to buy US wheed and soybeans. He says that process will start pretty soon now.
Nathan to the latest on the other major war overseas. Ukrainian President Vladimir Zelenski has approved a forty day influence operation to convince Russia to end the conflict. Zelenski gave no details of the plan and opposed on social media, made after he received a briefing from the head of
his security service on strikes against Russi targets. Ukraine has recently intensified attacks on Russian energy and commodities infrastructure, prompting President Vladimir Putin to call for stronger air defenses.
Well Karenamassive rescue and recovery effort continues in Venezuela, where two powerful earthquakes struck within a minute of each other Wednesday night. The death toll is up to at least two hundred and thirty five from the magnitude seven point two and seven point five quakes. Thousands more are hurt. Secretary of State Marco Rubio says American search and rescue crews are on the way from Los Angeles and the Washington, DC area.
They have a much of collapsed buildings and so they'll need a lot of help in terms of digging through that.
The airport there is badly.
Damaged, so we'll have to rely on the Department of War to deploy assets there.
Secretary of State Rubio says the US will also assist with Venezuela's longer term needs. More than a dozen other countries and the United Nations have also pledged aid. Acting Venezuelan President Delsi Rodriguez says more than two hundred and fifty buildings were damaged in the coastal area near the capital Caracas, where the cun Try's main airport was heavily impacted.
The Venezuelan government setting up a two hundred million dollar reconstruction fund with resources from the International Monetary Fund.
Let's turn to the markets now, Nathan, where tech fears are weighing on stocks around the world. As we close out the trading week is sell off and Samsung Electronics and sk Heintings triggered a second trading suspension in days. In South Korea, the COSTP index dropped nearly six percent. A couple of things concerning investors include Apple's decision yesterday to raise prices on many products. That's raising fears that rising component costs could eventually curb demand and slow the
tech rally. And Polka Mishra is a partner at Javelin Wealth Management.
I think the one sort of reality check that market finally got yesterday was Apple cut increasing prices of its products. That's actually shown how there's not unlimited money in the market. If the chip makers are benefiting, then the product makers are going to suffer. So it's the first sign that it's not in an endless rally.
Javelin Wealth Management's Polka Mishra Nashek futures they're down one point one percent this morning, and shares a Micron which soared to our record yesterday. They are current laid down as well. They are lower by about four and a half.
Percent market Sidria kindly to Apple's decision to increase prices, Karen to deal with soaring memory chip costs. That stock plunged more than six percent yesterday. Mark German covers Apple for Bloomberg. He says the move appears unprecedented.
Apple has not, at least as long as I've been covering the company, which has been well over fifteen years at this point. A broad set of price increases, mac price increases, iPad, Apple TV, HomePod, ho Pod Mini Vision Pro. We're talking about very significant changes here to the starting prices of max Well.
Bloomberg's Mark German says prices will not be raised on iPhones.
We also adding to a investor angst this morning, Nathan, a report that open Ai may delay it's IPO, and Bloomberg's Alexis Christopheris joins us with the latest Alexis, good.
Morning, Good morning, Karen, and Nathan. The New York Times is reporting that the chat GPT maker is leaning toward holding off on an initial public offering until next year. The paper says bankers advising the company on its IPO plans cautioned that recent volatility in tech stocks as well as in SpaceX's shares following its record IPO, could damp an enthusiasm. The time, says CEO Sam Altman, is pushing advisors, including bankers and lawyers, to target a valuation of a
trillion dollars. Open Ai has filed confidentially for an IPO, with the SEC, saying it has not decided on timing just yet. In New York, Alexis Christophers Bloomberg Radio.
Right, Alexis thank you. Soft Bank investors aren't taking well to the news of a possible delayed open AIIPO. That's stock film more than twelve percent in Asia. Soft banks investment in the chat GPT maker is slated to standard roughly sixty five billion dollars by October. Expectations of a big financial windfall from open AI's public debut had Booey the soft bank to record highs.
City Groups strategist Nathan say it's too early to call an end to the Ai trade. The team, led by Dirk Willer, says equities are likely to keep churning higher as corporate earnings remain strong, while quote liquidity has not tightened enough to burst the bubble.
And some mo other news this morning, Karen California will vote in November on a controversial proposal to impose a one time tax on billionaires help fund federal cuts to health care for low income people. A major labor unions announced it is moving forward with the proposal despite staunch pushback from a wide swath of critics, including Democratic Governor Gavin Newsom. Opponents say the tax will push billionaires out of California.
In Washington, Nathan Homeland Security Secretary Mark Wayne Mullen sidestepped questions from the top Democrat on the House Appropriations Committee about his support for advertising security services at airports nationwide and Bloomberg's Amy Morris supports from Washington.
Ranking committee member Rosa Deloro of Connecticut asked Secretary Mullen how the department can justify the move after all the sacrifices made by TSA workers during what she called the Republican shutdown. Mullen took issue with that.
Well, actually it was the Democrats that voted every time to shut them down.
That's just gimming.
We didn't shut them down, You shut them.
Down, answer my question, why are you moving?
And I answered your question. You're the one that shut them down?
Was the Democrats shutdown? You know, these people come to us to get funding for their for the works that they.
Do, and what you voted to shut them down.
President Trump is pushing the move in the budget process, alongside efforts to strip federal workers of collective bargaining rights. TSA workers would be affected in Washington. Amy Morris Bloomberg.
Radio Okamie, thank you, and White House officials say President Trump will take his first trip on the new presidential plane next week when he travels to an event in North Dakota. The plane was gifted by the Katars government. It's intended to serve as a temporary plane until a
new fleet of Boeing jets arrives. President Trump had defended accepting the gift from Katar, saying it would be foolish to turn it down, and he's praised the plane, saying, quote this is the sleekest line, and quote again, it was my taste.
Some 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 Michael bar Michael, good morning.
Good morning Karon. A campaign promise from New York City Mayor Zora Memdani has been fulfilled. The Rent Guidelines Board voted last night seven to one to freeze rents for nearly one million rent stabilized apartments. The freeze applies to both one and two year leases. In a statement, Memdani said, this is a historic victory for New York City tenants. This tenant was at the meeting.
For years, landlords had run this city and this is like a new era of tenant power. We have a rent freeze, Mayor dozens for one hundreds of people came out and tested five thousands online, like the landlord's days are over. Tennis eera in power now and it feels amazing.
The real estate industry is against the rent freeze, claiming it would hurt landlord's ability to maintain their buildings.
The whole process is such a post.
Audio courtesy of ABC seven. Discussions are said to have stopped for now about a possible plea deal for Luigi Mangioni, who is accused of killing a United Healthcare CEO on a Manhattan street. Mangione who has pleaded not guilty heads back to court on Monday. The Manhattan District Attorney's Office has decided to drop a rape case against Harvey Weinstein after two consecutive juries failed to reach a verdict on
the charge. The DA's office is said to have consulted with the alleged rape victim, Jessica Man, who wants to move on with their life. Weinstein still faces prison time for a California conviction. A top official at the National Park Service, as a liner along the attom of the Lincoln Memorial Reflecting Pool, was cut with a sharp knife or razor, causing damage to the foam sealant installed as
part of a sixteen million dollar rehabilitation project. Frank Lan's, deputy director of Operations for the Park Service, said about seventy fence post tops were also thrown into the pool. Lands made statements in a court document as part of a lawsuit filed by a nonprofit organization to halt the administration's work on the project. Meanwhile, work to drain the pool also faces algae issues, and it won't happen until
the fourth of July. Luble News twenty four hours a day and whenever you want it with the Bloomberg News Now now Michael Barr, and this is Bloomberg Karen.
Thanks Michael. A time now for our Bloomberg Sports update, and for that we bring in John stash Hour.
Thanks John. The World Cup team played in Los Angeles was essentially meaningless for both teams, the US already having won its group, Turkey already knowing it's going home. After the game, Turkey a scored late game three to two, and now the US gets ready for a knockout round game next Wednesday. Another big trade of the NBA, Minnesota made the Julius Randall to Brooklyn trade, and now the Timberwolves have acquired star point guard LaMelo Ball from Charlotte
in exchange for nas reading four draft picks. That to the Bloomberg Sports Update.
Stay with us. More from Bloomberg day Break coming up after this.
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. An attack on a ship in the Strait of Horror Moves is pointing to the risk to Middle East shipping even with an interim peace steal and effect between the US and Iran, President Trump says the deal is still intact.
We knocked the hell out of them, and now we're negotiating from a position of pure strike pier strength.
They know that, and the straits already and we're.
Setting records in this.
I was President Trump at a White House event with farmers last night, joining us from Dubai this morning. Is Bloomberg's head of Middle East coverage, Stuart Livingston. Wallace, Stuart, what more do we know about this attack? What could it mean for the negotiating position between the US and Iran?
Good morning, Good morning, Nathan. I mean, at the moment, the details are not entirely clear. I mean specifically who exactly carried out the attack, and as of now, no
one has really claimed responsibility for it. However, we can read into it certain important points, which is, this ship was traveling in the so called Southern Corridor, hugging the coast of Oman, which is obviously the alternative route to the Northern Passageway, which hugs the coast of Iran, and therefore one might presume that it was perhaps a warning of sorts not to use that southern route and to
stick to the one close to the Ranian coast. And from that you can extrapolate that there is pressure from Iran that it wants to maintain the control over hormones and ultimately would like to extract a revenue stream from all the ships that go through there every day, which you know, we don't know quite what that toll would look like, whether indeed it would be called a toll or a fee, but we're talking about billions and billions of dollars every year, you would presume in terms of
what that means for the negotiations, it's going to be very difficult because so far the red line for the US and for many of its allies and in even most of the region has been that that the Strait must remain an area of free passage for international commas.
And to that point, we heard from Secretary of State Marco Rubio talking about the difficulties that he sees around charging any kind of fees for whether it's tolling or insurance or whatever you want to call it, through the Strait of Hormones. But just sixty days to negotiate a broader piece deal, could this situation the status of the strait of hormones bog things down toward a more permanent deal.
Yeah, I mean absolutely, it's going to be a problem going forward. I would say it's one of a number of problems. I mean, it's probably the most pressing because that's the one that's had the immediate impact on the global economy far and wide, and will continue to do so despite the recent drop in oil prices. You know, we're a long way from going back to normal in terms of global energy supply. But in terms of that sixty day timeframe, I'm not sure how many people actually
believe that we'll get anything done in sixty days. The last major nuclear agreement we had with Iran, the JCPOA, took the better part of two years. Wasn't quite years, but pretty much there. So I suppose in theory they could use that as the basis of the current negotiations, but that seems quite unlikely. So I think the expectation
is that will probably be extended. But then you add to that all the huge problems on top of their not just the nuclearile, not just hour moves, but also the issue of ballistic missiles, of sanctions, of frozen assets, support for It's a very very long list, and they're all very very thorny issues.
And when it comes to this attack yesterday, Stuart, how is it affecting traffic through the Strait of horror moves?
Now?
We had heard from the President that something like nineteen million barrels of oil had gone through the Strait in just one day. Is it starting to have an impact on the level of flows through the Strait now?
It's very difficult to say, because it's always been a little bit patchy, and a lot of the ships going through continue to turn off their signals, which means that often we don't discover that they've gone through until several days later when they emerge somewhere in the Indian Ocean
or off the coast of somewhere quite far away. So I can't really give you defind advance of What I can say, which I think is difficult to argue against, is that as far as the international shipping industry is concerned, the fact that you can still get attack going through there is going to make them very cautious about moving ships, either in or route. And just one example, the International Maritime Organized was working on an evacuation plan for the
hundreds of ships still stuck inside the Persian Gulf. As of now, that's suspended because again they can't guarantee safety coming through horror moves. So I think it's going to be something that develops over the next several weeks. We'll see if there are a further attacks, what the negotiations look like. What's telling is that the Sultan of Oman is going to be in France next week. I believe and you presume that horr moves will be very high
on the agenda. I think the Omani position is going to be critical here because they're obviously one of the two countries that actually sits on that straight and to some extent, can determine the outcome.
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