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Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, there are new tensions between the US and Iran less than forty eight hours before a fragile ceasefire is set to run out.
VAK your engine room, VAK your engine room.
We're prepared to subject you to disabling fire.
US Central Command posted that video of the Navy firing upon then seizing any Iran flagged cargo ship in the Gulf of Oman. It's the first time the US has taken over a vessel since the blockade of the Strait of Hormos began last week. It's casting doubt on talks that President Trump had promised would seal the deal with Iran tomorrow night. Bloomberg's Jumana Borsecci has more from Dubai.
This is a situation we're in right now. From optimism on Friday and perhaps some vessels preparing themselves for passing through these street safely had to u turn and now we're back to Stanstil again. Essentially, no vessels, no ships, nothing is being passed through. And not only is there concern about what instructions to get from either side, whether it's the Iranian Revolutionary Guard or whether it's the US, but also real concerns about safety given the mounting dangers involved.
Bloomberg's Juman Ebersetti reports President Trump is once again threatening to destroy all of Iran's power plants and bridges if talks fail. Iran's Foreign ministry says it still hasn't decided if it's taking part. It says Iran's armed forces will respond to any quote new adventure well Nathan.
The White House still says Vice President Jdvans will head to Islama band to night to lead a second round of talks along with Envoys Steve Whitcoff and Jared Kushner. John Finer was chief of staff the former Secretary of St. John Kerry when he negotiated the twenty fifteen nuclear deal with Iran. He says talks with Taran are never going to be easy.
Negotiations with the Iranians take time, they take patients, they take expertise, and air dropping the Vice President into Pakistan.
For one day was never going to get the job done.
And former Trump Defense Secretary Mark Esper says it's unclear whether the two sides will even talk this week.
The President's been saying that we're very very close to a deal, that it's that they want it really badly. And then what you hear coming out of Iran as recently as last twenty four hours, where the lead negotiator, Speaker Glibaf, has said, yes, progress was made in Islamabad last week, but we are far from a significant There are significant differences between our negotiating positions.
Mark Esper and John Finder, we're guests on Bloomberg this weekend. Catch the show Saturdays and Sundays from seven am Eastern on Bloomberg Radio and Television and the Bloomberg Business app.
Karen.
Stocks are falling in oil is rising on the latest war developments. SMP futures are trading at seventy one twenty nine right now. That's the drop of about a half percent. US Texas Intermediate right now is up five point seven percent, trading at eighty eight to sixty five. A barrel Brent is up five percent at ninety five dollars.
Even.
Bloomberg Intelligence Senior commodity strategist Mike McGlone says oil prices are in a new range that will eventually decrease, but not for a while.
Given the recent news, is probably going to be up a little bit. But I think oil is stuck in a new range now between eighty and one hundred. If we stay above one hundred, that breaks things. We're seeing what happens when crudeil rallies at such high velocity. The whole global economy is tilting downward. GDP estimates are lower. Stays above one hundred, it'll make it go lower blow eighty. I think eventually it'll get there, but not right now.
Bloomberg Intelligence Senior commodity strategist Mike McGlone says oil has risen thirty three percent since the start of the war.
Now to a developing story Nathan, A tsunami warning has been issued for Japan's northeast coast after a seven point four earthquake hit the region, and Bloomberg's John Hirskovitz has the latest from Tokyo.
We have the tsunami warning that's been issued for a large parts of the northeast coast, especially around the Ewaatee area. This was the part that was hit was devastated by the twenty eleven tsunami. The warning is up for up to three meters for areas of ewate.
And bloomerge down. Hrskobat says in twenty eleven, a magnitude nine point zero earthquake and tsunami caused more than twenty two thousand deaths and forced nearly half a million people to flay their homes.
In Europe, Karen, Bulgaria's former president Roman Radif, has claimed an overwhelming victory in his country's general election. His Progressive Bulgaria Party, which opposes sanctions on Russia and military aid for Ukraine, is headed for an outright majority in the eighth general election in Bulgaria since twenty twenty one.
Well back here in the US, Nathan tragedy in Louisiana and the deadliest mass shooting in the country in more than two years, A father killed eight children, including seven of his own, and shot two women in two homes in Shreveport, Louisiana. Shreveport Police Corporal Chris Bordalan spoke to CBS News about the situation.
He drove into a neighborhood and exited the vehicle, and initial indication as.
He produced a handgun who returned fire ultimately killing the suspect. Shreveport Police Corporal Chris Bordelan said the gunman was identified as thirty one year old a Shamar Elkins. A cousin said one of the women was married to the shooter and they had been arguing about a separation and were due in court. Today's turn to other news.
Now this morning, Karen, it is Patriots Day in Boston, and that means in just a few hours, tens of thousands of runners will pound the pavement for the Boston Marathon. Bloomberg's Monica Ricks checked out the lineup.
More than thirty thousand runners from all over the world we'll be running this year's Boston Marathon, and retired astronaut Sonny Williams will be one of them. This will be her second Boston Marathon, but her first on Earth. Back in two thousand and seven, Williams ran it tethered to a treadmill aboard the International Space Date and her time wasn't bad. She did it in four hours and twenty
four minutes. Now today, Williams will also receive the annual Patriots Award from the Boston Athletic Association for her inspiration and service past recipients include former Boston mayor Marty Walsh, former New England Patriots star Rob Gronkowski and Patriots owner Robert Kraft, and Red Sox legend David Big Poppy or Tease Monica Ricks Bloomberg Radio.
All right, Monica, thank you, Let's turn back to the economy now. The Senate Banking Committee is slated to holiday confirmation hearing tomorrow for President Trump's pick to be the next chairman of the Federal Reserve. Bloomberg's Tom Busby has more on what to look for well.
The hearing for former Federal Reserve Governor Kevin Walsh will likely focus on his thoughts about where interest rates should be. Look for discussions about maintaining the Fed's independence from President Trump. Also Warsh's desired a free up capital with a sharp rollback in the Fed's massive crisis era balance sheet, and his support for rolling back the fed's requirements for bank
liquidity levels. Also for his financial filings that showed he's worth at least one hundred and ninety two million dollars maybe more, and that his wife Jane Lauder, a granddaughter of the cosmetics firm founder Essay Lauder, could be worth billions. Tom buzby Bloomberg Radio.
Time Now for look at some of other stories making news in New York and around the world. And for that we're joined by Bloomberg's Michael Barr Michael, Good Morning.
Good morning, Karen. Senate Minority Leader Chuck Schumer says he is outraged over FIFA's plan to charge World Cup fans one hundred and fifty dollars for train tickets. Mettlive Stadium in New Jersey is hosting eight World Cup matches, including the final, and the only way to get to the stadium will be by taking a New Jersey Transit train from Penn Station, New York. Schumer said NJ Transit is paying forty eight million dollars to transport World Cup fans while FIFA pays nothing.
So FIFA is forcing every fan onto public transit and then saying you got to pay one hundred and fifty dollars to help New Jersey Transit carry them.
What the hell? Who the hell do they think they are.
Senator Schumer says FIFA should cover the cost of getting fans to the World Cup at Medlife Stadium. New York mayors are on Mamdanie Hail to proposed annual surcharge on some owners of second homes in the city as an important step in his pledge to raise taxes on the wealthy. Mamdannie on NBC's Meet the Press Sunday, says he believes in the importance of taxing the rich.
I tell them, unless they make more than a million dollars a year, or own some of the most profitable corporations in our city, or have a second home that's worth more than five million dollars, than these are not taxes that apply to them. And what I've sought to make this city the most expensive in the United States of America is one that's affordable for the people who have been priced out of it.
NBC's Meet the Press is heard Sundays on Bloomberg. The first American pot Iff, Pope Leo, is wrapping up his eleven day landmark papal trip to Africa. Throughout it, he has made a consistent call for peace and unity. More than a fifth of the world's Catholics are in Africa and a driving force our young people. Pope Leo is expected to meet with the Catholic leaders in Angola before he heads to the Equatorial Guinea on Tuesday for the
final stop in his papal trip. Global news twenty four hours a day and whenever you want it with Bloomberg News Now Michael Barr and this is Bloomberg Karen.
Thanks Michael.
Time now for our Bloomberg Sports update, and for that we bring in John stash Hour.
Thanks Dared.
One surprise in the NBA playoffs, eighth seed of Orlando won at top seeded Detroit one twelve to one oh one in Game one of that series. The Buffalo Sabers first Stanley Cup playoff game in fifteen years. They trailed the Bruins two nothing with eight minutes ago. The scored four goals in seven minutes. The Sabers won four to three. The Cubs beat the Mets two to one, and ten means the Mets have lost eleven games in a row.
The Heritage Golf in Hilton Head went to a playoff in Matt Fitzpatrick burnied on the first extra hole to beat Scottie Scheffler. That's your 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 Appum. This is Bloomberg Daybreak.
Good morning. I'm Nathan Hager, monitoring developing news off the coast of northeast Japan, where a powerful earthquake has sparked tsunami warnings and a part of the country devastated by shaking and waves more than a decade ago. Joining us from Tokyo is Bloomberg's John Hirskowitz. John, Good morning, What do we know about this quake? What's the latest.
Short The quake came in at a magnitude of seven point five, It hit offshore, and right now the tsunami wave is coming in in various parts of Japan. The warning was up to three meters this is about ten feet one story of a building. But the actual tsunami that's come ashore, the highest point so far we've seen is at eighty centimeters, so that's good news. It's not as big so far as the warning has been up
and down the coasts. There are sea walls which should contain the tsunami as it comes in, but the warning is still in effect. So we've seen this. We've seen the prime minister. The Meteorological Agency warned people to get to higher ground. We've seen trains being service being delayed cut off. The Meteorological Agency of Japan has warned that we could see similar strong quakes for about a week in this area. So the warning is still up there.
For the tsunami, the warning is still up for three meters, but so far what's coming shore has the highest point has been eighty centimeters in Kouji Inywate. This is the place that was devastated in twenty eleven by the earthquake tsunami. Lower down the coast is Fukushima where the nuclear plant had the meltdown disaster. So so far, no abnormalities or any power plants, so everything it's of concern, but so far nothing devastating as we saw in twenty eleven.
I think you were there in twenty eleven, weren't you in that awful Fukushima disaster. It sounds as though things might not be as bad as they were then, but put it into that context for us.
Sure, I went a few days after the tsunami hit in twenty eleven up and down the coast and it was just absolute devastation and you could see you're driving on a road and there is a tanker in the middle of the road. Everything was just stirred up. Your GPS didn't work because the roads no longer existed over a block. There were devastating fires that came out of the tsunami, and it was just absolute devastation for so many for all up and down the cost. After that,
Japan rebuilt. I went back there a few years ago. There are sea walls in place at a much higher level. The power plants have had various furnishings that make them safer than before. The people are concerned. When the warning comes in, people get to high ground as quickly as possible. Is it's a serious matter when the waves may be coming in not as high as predicted, but the devastation that was there before. I think there was up to twenty thousand people killed or missing from that tsunami, so
it is a huge concern. So far, things are serious, but we're not at anywhere near the level that we saw in twenty eleven.
Okay, So this earthquake was in the northeast or off the northeast coast of Japan. You're in Tokyo to the southeast, just quickly, John, did you feel it from where you are?
Yeah, I'm in the Bloomberg office. It's on the twenty second serve of a building. The building was swaying a bit. The elevators were cut off for maybe about twenty thirty minutes, so we felt it here. The Japan uses an intensity scale which measures the shaking on the ground. Seven is the highest. This is like absolute devastation. In Iwate Prefecture, it came in at about a five. In Tokyo it was a three, which meant that we could feel it,
but no real damage to structures. Iwate, they may see some damage structures, but not at the highest level, which would be a seven. So magnitude and intensity. Japan uses two scales. Earthquake at seven point five magnitude. The intensity was about a five at the worst.
Okay, Well, appreciate you coming on with us, John and bringing us the very latest on what is happening in Japan this morning evening in Japan. That's Bloomberg's John Hirskovitz joining us this morning of the earthquake from Tokyo this morning.
But now we want to turn to the major story, and of course that is the ceasefire between the US and Iran with less than forty eight hours until it's due to expire, there is new uncertainty about where the war goes from here after the US seized an Iran backed cargo ship over the weekend, joining US from Dubai. Now is Bloomberg Middle East correspondent Jumana Bursecci, the anchor
of Bloomberg Horizons. And of course, before these latest developments over the weekend, Jumana, there were a lot of hopes that there were going to be talks as soon as tomorrow between the US and Iran. Where do things stand now?
Good morning, Absolutely, good morning. There's a lot to wait through from this weekend. You know, a lot of optimism on Friday afternoon after a series of posts that President Chump put up almost suggesting that the war was over.
But then of course things turned around over the course of the weekend and this morning, as you were just talking about, we know that Sancom actually seized an Iranian linked vessel in implementation of their own blockade that is still going throughout the Strait of Homos, so the street is still effectively shot. But at the same time, the US side has indicated that they plan to go ahead
with these talks in Islamabad. The plan is for Jdevans once again to lead the discussions alongside Steve Witkoff and Jared Kushner, and that they are expected to leave the US tonight, so tonight US time, landing in Islamabad tomorrow morning for discussions. However, the Iranian side are being COI we just don't know at this point whether they plan on attending. We heard from the Iranian Form ministry spokesperson about an hour ago and he said no final decision
had been made. Over the course of the weekend. The speaker of the parliament, Mahma Galimov, did suggest that the progress had been made, but there was still a lot of daylight between the two sides. And then more recently this morning, the Iranian President Paseshkian said there is no appetite for a return to fighting and that all rational
and diplomatic revenues should be used to reduce tensions. So you can piece all the messaging together, which suggests that there is perhaps still hope that the Iranian delegation show up to these meetings. They just haven't confirmed it yet.
Well, and there's still a question, isn't there about whether the ceasefire is still in effect. We've heard some commentary from the Iranian side that they consider the seizure of this cargo ship of potential violation.
Yes, and I think that was the big question as we walked in this morning, just exactly how the Iranians would respond and the IRGC, which is of course the military wing, and earlier I was referencing a lot of comments from the official side of around the Iranian delegation. But the IRGC are livid that the US actually went ahead and seized the vessel. They vowed to retaliate. So far,
we have not seen that retaliation. Remains to be seen what it's going to look like and if that would really amount to another military estillation or a repeat of some of the hostilities that we saw a couple of weeks ago. One other thing that I would just say as well, as President Trump also suggested that once again, if there is no breakthrough this time around, he's threatening to once again attack power plants and a key civilian
infrastructure in Iran. So sort of a repeat of the threat that we had a couple of weeks ago, and unlikely that that has gone down well either in Iran. So they have to make a decision between the two factions here, the military wing who want to respond to the US provocations, and then the diplomatic wing who have been representing Iran at these talks that seem to indicate that they want to continue and go down the path of diplomacy as opposed to further military escalation.
That raises another overriding question that's been hovering over this for so many weeks, if not months, as to which of those wings speaks for the Iranian government as a whole. But even if these talks were to get underway tomorrow in Islamabad Jumana, the two sides are still very far apart on the fundamental issues.
Aren't they.
Yeah. And the fundamental issue, of course, is not just the strait. And by the way, the straight reopening was one of the key features of the ceasefire that was supposed to be implemented a couple of weeks ago, and
the strait never fully reopened. I should just remind everybody, But the fundamental issue here is nuclear ambition, and of course, you know, the US are pushing for maximum concessions out of the Iranian side, and over the course of the weekend, once again, the Iranian State TV repeated that what the US are asking for is too maximalist for them, and of notes, here is number one their nuclear ambition in terms of the amount of enrichment that the US will
allow for them to continue with, and the Iranian position has always been that they should be allowed for a low level of uranium enrichment for civilian purposes. And then the second big question is what happens that fate of the enriched stockpile that they're already sitting on, which is more than four hundred kilos worth or one thousand pounds. And again they've repeated the message over the weekends that there are no plans to transfer it outside the country.
There are multiple media reports suggesting that a deal had been struck. And then the final point is what the US plan to do with those sanctions and whether some deal would entail a lifting of sanctions or unfreezing Iranian assets around the world. At this point we don't know, but we do have a better understanding of what the framework of the discussion is.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Da Bray