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Good morning.
I'm Nathan Hager and I'm Alexis Christophers. Here are the stories we're following today.
Alexis, we are seeing a relief rally in markets on the prospect of the US ending the war with Iran soon. President Trump says he could see the conflict ending in two to three weeks as it enters its second month.
I had one.
Goal, they will have no nuclear weapon, and that goal has been attained.
They will not have nuclear weapons.
But we're finishing the job, and I think within maybe two weeks, maybe a couple of days longer to.
Do the job.
And remarks from the Oval Office heard live on Bloomberg Radio, President Trump said it's still possible Iron reaches a deal in that timeframe. Secretary of State Marco Rubio says the US has had four objectives to destroy a run's offensive missiles, destrot's missile production, destroy it's navy, and assure it never has a nuclear weapon on or.
A head of schedule on each of those four objectives, and we can see the finish line. It's not today, it's not tomorrow, but it is coming. We are going to get to the point where our military will have achieved all of its objectives in this mission, and they're doing so with extraordinary efficiency.
Secretary of State Rubio made those comments on Fox News.
But there's one goal that the Trump administration is leaving unsaid. As we hear from Bloomberg Middle East correspondent Jumana Bersecci in Dubai.
There was no real objective link to the reopening of the streets, and in fact, when he was asked about it, he said that they can leave it up to other people and pointed to other countries such as the likes of China who obviously benefit from the lion's share of the energy products that pass through the streets, and that it would sort of be something that can be dealt with at a later stage, so not an explicit objective per se anymore.
Bloomberg's Jumana Barsecci reports President Trump has expressed frustration with US allies for not helping reopen the street. This morning, the President told the UK's Telegraph newspaper, but he's strongly considering pulling the US out of NATO after it failed to join the war, telling the paper it's quote beyond consideration.
In the meantime, Iran continues to launch attax including at an oil tanker, off cutter and cruise missiles targeting the United Arab Emirates and a third US carrier group, the USS George W. Bush, is on its way to the Middle East. The White House as President Trump will deliver a primetime address on the war tonight. That's set for nine pm Wall Street Time. You could hear it live here on Bloomberg Radio or watch on Bloomberg Television and the Bloomberg Business app well.
Alexis oil is falling on the latest war developments, even as the strait of hormones remains largely crolosed. Right now, Brent is down one point four percent, trading at one oh two forty nine a barrel. West Texas Intermediate's at ninety nine thirty four. Steven Stepchinski leads Bloomberg's team covering energy in Asia.
There is a new risk premium for oil going through the Middle East and gas going through the Middle East.
That's going to have to be sort of figured out going forward, because even if everything were to end, if the straight uport moves were to open, if all the infrastructure were to be repaired, there's still going to be fears in the back of the minds of traders, buyers, even sellers as to how safe everything is going forward, What are the chances that something could flare up again, What are the chances of insurance rates increasing as well?
Bloomberg Steven Stepchinsky says, while Brenton dipped under one hundred dollars a barrel, it is still about thirty seven percent higher than before the war began.
And Nathan, we are seeing stocks rally around the world this morning on optimism the war will end. Stocks in Japan soared more than five percent, the eurostocks fifty is up more than two percent. And this follows yesterday is Wall Street rally, which saw the S and P five hundred climb two point nine percent the Nasdaq surge three point eight percent. Laurence and Filippo is a senior investment strategist at Bank of America.
I think this is a little bit of a relief rally here. Now it's headlined to head yeah, if this is really all clear, but I think this at least gives us a sense of how the markets would react when we really do find the end to this.
Bank of America senior investment strategist Laurence san Felippo. Despite yesterday's rally, the S and P five hundred still fell four point six percent in the first quarter, while the nasjack dropped more than seven percent. Right now, we've got S and P futures up, Nathan about four tenths of one percent back.
In Washington, Alexis, the Supreme Court is set to hear arguments this morning over the legality of President Trump's executive order that ends automatic citizenship for children born to parents who are in the US on a temporary visa or illegally. Bloomberg Zamy Morris reports from the nation's capital.
President Trump's executive order stipulates the government will no longer recognize birthright citizenship for children born to undocumented immigrants. The move up ends more than a century of legal precedent. The case Trump versus Barbara tests a long settled interpretation
of the Constitution that has governed citizenship for generations. The ACLU arguing that the executive order violates the Fourteenth Amendment, the Trump administration arguing that jurisdiction refers to political allegiance. A final decision by the Supreme Court is expected in late June or early July in Washington, Amy Morris, Bloomberg Radio.
Thanks Amy. President Trump says he will attend those Supreme Court hearings this morning. In another development, the President has signed an executive order intended to make it harder for voters to cast mail in ballots. That's a practice used by millions of Americans. The order requires a Homeland Security Secretary to prepare a list of US citizens eligible to vote in each state, and the Postal Service to only send absentee ballots to voters on the approved list.
The cheating on mail in voting is legendary.
It's horrible what's gone on, and it's very clearly covered, very very clearly.
So I think this will help a lot with elections. We'd like to have voter ID, we'd like to have proof.
Of citizenship, and that'll be another subject for another time.
The move is likely to draw legal challenges, with legal experts saying President Trump has virtually no authority to outlaw voting by mail himself without a change in law.
Well, here's a move we haven't seen in more than a half century. Alexis NASA is preparing to send astronauts on a journey around the Moon. The Artemis two mission will send four astronauts on a trip to the Moon and back. If successful, it'll help clear the way for astronauts to walk on the Moon again maybe two years time. Bloomberg's Ed Ludlaw is in Florida for the launch.
This is the great next step in America's ambition to have humans back on the Moon. In this mission, Optomist too, they're basically doing a fly by or a fly around the Moon, so they travel deep into space two hundred and eighty five thousand miles, go around the Moon and come back. But it's you know, it's the great dress rehearsal for the technology essentially that's planned to get humankind and driven by NASA America back to the Moon maybe twenty twenty eight.
Bloomberg S Ed Ludlow notes, the launch window opens tonight at six twenty four Wall Street time. We will have live coverage of liftoff right here on Bloomberg Radio.
All right, very exciting. Now back here on Earth, specifically Wall Street shares of Nike. They are plunging this morning, more than nine percent. The retailer gave a surprisingly gloomy outlook for the year ahead. Nike's facing headwinds around the globe, including elevated inventories in Europe and the Middle East and traffic disruption from the war.
Well, open AI's valuation keeps going up like a rocket Alexis. It now stands at eight hundred and fifty two billion dollars after the chat GPT maker completed a deal to raise one hundred and twenty two billion from investors. The bulk of the financing came from three big tech companies, Amazon, Nvidia, and SoftBank.
And Anthropic inadvertently released source code for its popular claud Ai agent. The leak of basic source code, the second slip up in just a week, triggered a discussion in the community around new revelations of how Anthropic's popular coding agent works. Several experts are also raising concern about potential security vulnerabilities and light of the unintended exposure.
And a programming not Alexis. Markets may close on Fridays, but the world does not. And that's why we're bringing you a live radio and TV show. It's brand new, and it's called Bloomberg. This weekend looks beyond the daily headlines to focus on the bigger themes driving politics, business and culture. So join David Gura, 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 TV and the Bloomberg Business app.
Five ten on Wall Street Time 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' John Tucker. Good Morning, John, Good Morning.
A linsis the federal judge who's ordered the Trump administration to suspend construction of the four hundred million dollar East Wing Ballroom. Let's get the tales this morning from Bloomberg's Monica Rix.
US District Judge Richard Leon in Washington granted a reservationist group's requests for a preliminary injunction to halt the project. He concluded that the National Trust for Historic Preservation is likely to succeed on the merits of its claims because no statue comes close to giving the President the authority he claims to have. The Republican nominated judge said in his order, the President of the United States is the
steward of the White House, not the owner. Crews have long since torn down the East Wing, radically transforming the look and feel of the historic grounds. Monica Ricks Bloomberg Radio.
In another case a win for public broadcasting, a federal court ruled President Trump's anti media funding executive order is unlawful, the court granting a permanent injunction for the government implementing or enforcing the executive orders instructions to cease funding for National Public Radio and PBS. Judge Randolph Moss wrote the president can't use governmental power to direct federal agencies to bar grants in retaliation if the saying things he does
not like. The First Amendment, he said, doesn't tolerate viewpoint discrimination and retaliation. Governors of six New England states backing their regional commitment to explore advanced nuclear technologies. Governors of Massachusetts, Connecticut, Maine, Rhode Island, New Hampshire, and Vermont have signed into a
statement to explore steps to deploy advanced nuclear generation. Connecticut Governor Ned Lahmann site data showing electricity consumption in New England, who's expected to increase more than forty percent in the next twenty years, and the Department of Agriculture will lead dozens of American farm companies to the Philippines. It's a trade mission this month aiming to expand access to the
Southeast Asian nation. The US is seeking to expand agricultural trade ties with the Philippines, a key defense ally in Asia. Global News twenty four hours a day and whenever you wanted with Bloomberg News. Now, I'm John Tucker. This is Bloomberg Alexis all.
Thanks John. Time now for our Bloomberg Sports update, and for that we bring in John stash Hour.
We've learned of four names that are going to the Basketball Hall of Fame, longtime NBA coach Doc Rivers, ex Nick and Phoenix Son, Amari Stodemeyer and Candice Parter and Elena Deladon, who starred in the WNBA. Tiger Woods put out a statement saying he's stepping away from golf to seek treatment and focus on his health. It comes four days after his latest car accident. Tiger hasn't been in a PG event almost two years, but he had not
ruled out playing the upcoming Masters. That's your Bloomberg Sports Update.
Stay with us. More from Bloomberg Daybreak coming up after.
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Good morning on Nathan Hager. Two weeks, maybe three. That's the new timeline that President Trump has set out for the US to end it's war with Iran after nearly five weeks of conflict. More than five weeks, President says he has largely achieved his goal of ensuring Tehran never attains a nuclear weapon.
We've had Rashim change. We're dealing with people that are much more rational, and it's amazing what we've done.
President Trump and Oval Office remarks heard live on Bloomberg Radio and joining us from Dubai once again this morning is Bloomberg Middle East correspondent Jumana Borsecci, the anchor of Bloomberg Horizons. Jumana, good morning. We've heard the President say that the US has largely achieved its goals. It raises the question whether it has good morning.
Good morning, yes. So market's certainly reacting to the comments coming through from President Trump. Last night, suggesting that there is a timeframe after which they would start to wind down their military operations. So he's suggesting two to three weeks is how much longer they anticipate it's going to take for them to fully achieve these military objectives. He also said that the main objective, which is ensuring that Iran doesn't go on to develop a nuclear weapon, has
largely been achieved as well. And I think you know one other thing that really stood out from his comments yesterday is there was no linkage whatsoever between there perhaps anticipation that they're going to be winding down military operations in the next few weeks versus a reopening of the Strait of hormones, and he seemed to suggest that that is going to be or become a broader global issue as opposed to an issue or a term that the US will insist on should Iran actually come to the
negotiating table. So we've sort of delinked in the last twenty four hours the fate of the Strait from the military operations that the US and Israel are conducting in Iran.
It speaks to fresh comments that we've heard from President Trump in an interview just this morning with the UK's Telegraph newspaper some of his strongest comments yet, saying that he's strongly considering leaving NATO as well saying it's beyond consideration. These are pretty forceful words from the President this morning.
Yep, that's right. He said he was disappointed in NATO, that this was a test for NATO. They're going to remember that they didn't stand that well, he will remember that NATO didn't stand by the US. But I think he's referring to the fact that several European nations have said that the US will cannot be using there's some of their air bases, the likes of Italy and Spain.
But at the same time, you know what many of these European countries have said is they would look perhaps to be part of a coalition to secure safe passage in the Strait. But once the risk of vessels calms down, and once there is sort of a de escalation in terms of the ongoing military strikes and military attacks that are going that are taking place in the region. So
it's not as though they've completely ruled it out. And in fact, Mark Ruta, who enjoys a good relationship with President Trump did suggest last week they're working on some form of a multilateral, multinational solution or coalition vis a vis the Strait, but asking NATAL members and asking European allies to get involved militarily in the war is deemed to be one step too far for them because it's not a war that they started.
And you have to wonder whether that kind of effort to secure the Strait could fit into the President's two to three week window when we continue to see Iran carrying out drone and missile attacks across the Middle East even this morning.
Yeah, I think one of the big questions that still remains unanswered coming out of President Trump's comments yesterday is what this means for number one, ongoing Israel Israeli operations as well. There has been it once again, an intensification of attacks and counter attacks in the last forty eight hours.
And the second question is whether Iran would actually seize those attacks on the Gulf States, So whether in this case US protection or US security guarantees are still going to be valid for some of those key Golf allies in the region as well. So a lot of question marks still. And then the other thing that I would just remind people is there has been a significant amount of troop deployment to the region. We spoke about this
earlier this week. The first marine expeditionary unit arrived on Friday, Bloomberg reporting overnight that another aircraft carrier is also making its way from California to the region as well. They're expected to arrive in another two to three weeks. And so you've got to think that the reason there is a reason for this additional military armada being deployed to the region, if they're not going to use it, then
is it for deterrence? And if it is for deterrence, does that also benefit the Golf States as well?
And if the idea is that the objective of preventing Iran from ever obtaining a nuclear weapon is large achieved, the President hasn't said that it has definitively been achieved yet. Could we see a possible ground action to try to seize Iran's uranium That's something that's been spoken about as well.
Absolutely, and it didn't come up at all yesterday. There was no mention at all of that enriched uranium stockpile. And Iran is thought to be sitting on a stockpile of north of one thousand pounds or four hundred kilograms worth of this enriched uranium, and earlier reportings seemed to suggest that if there were going to be a targeted raid conducted by some of these new troops being deployed to the region, one of the options would be to send them inland to find to somehow be able to
extract this enriched uranium stockpile. Obviously a very risky operation to undertake, but the fate as well of that enriched uranium, I think is one that is going to hang over the world over the next couple of weeks because it all goes back to the premise from this war at the very outset. You know, the whole objective, what Trump says, is to ensure that the Irans don't go on to
develop a nuclear weapon. And so if they're still sitting on this one thousand pounds worth of enriched uranium, how is that pushing out the threats of their ability to develop a nuclear weapons. So this is one of the questions that's going to have to be resolved.
I think one of many questions still to be resolved. Thank you for this, Jumana. We'll be checking back with you throughout the morning. That is Jumana Bursecci the inkor of Bloomberg Horizons with us this morning, once again from Dubai, Alexis.
Thanks Nathan and recapping some of our top stories this morning. Stocks are rallying, Crude oil is sinking on optimism the war could end soon. The S and P five hundred
so its biggest one day gain since last May. Yesterday, on President Trump's talk of leaving the war, President Trump plans to be in the court room as a Supreme Court takes up his bid and birthright citizenship arguments on the President's executive order are set for ten am Wall Street time, and the countdown is on for NASA's first manned moon mission in more than half a century. If all goes well, lift off for the ten day fly by for Artemis two is set for six twenty four
this evening from Cape Canavil, Florida. More on those stories coming up on Bloomberg Daybreak, Nathan.
Okay, Alexis, thank you for a five twenty two Now on Wall Street, we want to take a broader look at the market impact from this more than a month of war with Iran and the prospect of a resolution if we do see the US stick to the president's new timeframe of two to three weeks to end the conflict. Joining us now is Jane Foley, head of FX Strategy at Rabobank. Great to speak with you this morning, Jane. Of course, we've seen the dollar really perform as a
big hedge during this conflict of flight to cash. What's the impact if we do see a quick resolution to this conflict?
Good morning, Good morning, it's a pleasure to be here. Well, of course you've already seen it. Taste of that. Today
the market is all about optimism. Today. It's really focusing on that two to three week timeline President Trump was talking about yesterday, and that of course means that it's been ignoring or all of those other factors that in mine has just been talking about, the Uranian and the rich Uranian for instance, around stockpiles, of that, the fact that there's already or still overnight and yesterday a lot of missiles in both directions, and so from that point
of view, today is optimism. But we don't know for sure whether or not that's going to be the tone that the market will be adopting, you know, through next week or the week after for that, But as it stands that the dollar really has backtracked today, we've seen at the US dollar underperforming all other JTA currencies today, which is really in reflection of the optimism that's also been pushed through into stock markets and bomb markets too.
Do you see certain currencies benefiting more from an early exit by the US.
You know, it's difficult to see that if you look at the ones that have been the best performers today.
But what we have noticed, you know, over the last month, is that aside from the theme of the dollar being the safe haven of choice, the next theme that really has pushed around FX rates has been this theme of well, which central banks are going to be hiking the most, and that leaves Sterling, you know, sort of next best at the top of the G ten par because just you know, six weeks or so ago, the market was anticipating that the Bank of Veno could be cutting interest
rates twice more this year, and you know, since then it was thinking, oh, there might be two or three interest rate hikes, and that has meant that because of the short term interest rate differentials, Sterling has done well.
But I think there's a real big butt to that because The reason that the market was expecting at Sterling to cut more this year was because excess capacity was showing an employment rate was going up, and that means that the UK is perhaps a more vulnerable position into this crisis, because don't forget, even if we do get a two to three week end to this conflict, or at least the US withdrawing, there is going to still be the damaging impacts of still higher energy prices than
we would have had anyway, and that's still going to affect consumption through these economies. So I think there's still a lot of dust that needs to settle down as a market really works out exactly what the growth and the inflation impact of this crisis will be.
Well, what do you see as the potential growth and inflation impact. We've got just about a minute left.
Well, for instance, I think a country that's relatively well insulated is Norway. Yes, the central bankers walk because yes, there'll be some sort of inflationary impact, but don't forget, it's an energy exporter, which is positive for it and it eases. They're almost all renewable, so it's in a relatively good position. Australia, maybe I think that one could come back the Australian dollar as well.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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