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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 the latest developments in the Middle East. The war has entered a fifth day of fighting and there are no signs of easing. Israel says it's striking Iranian targets as well as Hesbala sites in Lebanon, as Iran continues to fire missile at Arab states across the Middle East. Saudi Arabia says there was just an attempt this morning on one of its key refineries at Rostanura.
The kingdom says there was no damage. We get the latest from Bloomberg Middle East Managing Editor Paul Wallace.
This conflict continues and there's no sign of let up from Iran or the US or Israel.
The latter two continue.
To strike Iran heavily, and Iran is striking back very intensely against golf Arab states. It seems at the moment as if Iran is concentrating most of its power on those golf out states rather than Israel and the likes of the UAE, the likes of Saudi Arabia. The census very much that Iran is using its drones now, of which it has far more than it does, cruise and ballistic missiles to target golf Ab states.
Bloomberg's Paul Wallace says the State Department has now announced plans to help evacuate Americans who want to leave the Middle East well Nathan.
President Trump said the US would provide insurance guarantees and naval escorts to ensure safe passage for oil tankers and other vessels through the Strait of Horror moves. That's not having too much impact on the oil market right now. Crude is up again. N I makes screwed oil is at seventy six dollars sixty one cents of barrel brent
is it eighty three dollars eighty cents. Meanwhile, the President said he ordered the attack on a run because he thought Tehran was about to attack first, and that Israel did not force his hand to initiate the air assaults. Trump spoke yesterday at the Oval Office.
Based on the way the negotiation was going, I think they were going to attack first, and I didn't want that to happen. So, if anything, I might have forced Israel's hand, but Israel was ready and we were ready.
President Trump is threatening to cut off all trade with Spain after that country denied the US access to its military bases for the campaign against Iran. The President says he has already instructed Treasury Secretary Scot Vesn't to sever the relationship.
I told Scott to cut off all dealings with Spain. They were the only country that in NATO would not agree to go up to five percent. I don't think they would have agreed to go up to anything. They wanted to keep it at two percent, and they don't pay the two percent. So we're going to cut off all trade with Spain.
A Spanish government official said that the US must respect international trade agreements and the autonomy of private companies.
And more world leaders are speaking out about the war Caaren. Canadian Prime Minister Mark Carney is criticizing the US and Israel for striking Iran without consulting allies or the United Nations.
The current conflict is another example of the failure of the international order, despite decades of UN Security Council resolutions, the work of the International Atomic Energy Agency, in a succession of sanctions and diplomatic frameworks arounds nuclear threat remains and now the United States and Israel have acted without engaging in the UN or consulting with allies, including Canada.
Canadian Prime Minister Marcarney spoke earlier in Sydney and.
Nathan and Europe.
UK's Chancellor Rachel Reeves says Britain will not make decisions about Iran based on US trade tie. Speaking of Bloomberg, Reeves explained why the government was not taking part in the strikes on Tehran.
When it comes to decisions around using British armed forces to take part in conflicts around the world, it is very important that we charge those on whether it is legal and whether it is the right thing to do. You can't make a decision about whether to get British en forces involved in a conflict because it may or may not make it more likely to get a trade deal.
And Rachel Rizo speaking of Bloomberg after President Trump criticized Prime Minister Keir Starmer over the UK's limited support.
Let's turn to politics now, Karen back here in the US. The results are in from the first primary races in the twenty twenty six mid term elections in Texas. Four term Republican Senator John Cornan is headed to a runoff with State Attorney General Ken Paxton.
The people of Texas made your voices heard.
After all the personal attacks, which there were many, and after all the lies. You listen to what John corn was selling, and you weren't buying it. With eighty eight percent of ballots counted, Ken Paxton trails Senator Cornyon by one percentage point forty point nine to forty one point nine percent. Republican Congressman Wesley Hunt received thirteen point four percent of the votes, denying either candidate, a majority that means Cornin and Paxton will face off again in May.
Well Nathan and the close watch Democratic Senate prime array. State Representative James Tellerrico defeated Congressoman Jasmine Crockett fifty three point one to forty five point six percent, but the vote was marked by confusion. In Crockett's home base of Dallas County, voters there and in at least one other county reported being turned away from polling places due to a rule change that required them to vote at their local precinct. In past elections, they could vote anywhere in
the county. A judge extended the voting by two hours, but Crockett says her heart is broken.
We were able to keep the polls open, but I can tell you now that people have been disenfranchised.
Congress Woman Jasmine Crockett says the result could hinge on who was or was not allowed to vote in Dallas County. Tall Rico also blamed Republicans for the rule change and called for a voting hours to be extended.
In other key races, Karen Texas Republican Dan Crenshaw is the first incumbent congressman to lose in the midterms. He felt to conservative state lawmaker Steve Toth fifty six point three to forty point two percent. Another Republican in Texas, Tony Gonzalez, is headed to a runoff with gun rights YouTuber Brandon Herrera. Gonzalez has faced allegations of an affair with a staffer who later died by suicide. And in North Carolina, a high profile Senate race is set for November.
Former Governor Roy Cooper won the Democratic primary. He will face former Republican National Committee Chairman Michael Wattley in what could be one of the most expensive Senate races.
In the country.
Nathan, Let's turn to the nation's capital now. Homeland Security Secretary Christy Nome defended the immigration crackdown during her testimony before the Senate Judiciary Committee, and Bloomberg's Amy Morris reports from Washington.
Nome faced bipartisan backlash over the immigration crackdown. Republican Senator Tom Tillis called for Nome's resignation, citing allegations that she blocked an Inspector general from investigating complaints against DHS.
As of today, I'll be informing leadership that I'm putting a hold on any odd wock nominations until I get.
A response, and in two waits.
If I don't get a response, I'm going to deny quorum and mark up in as many committees as I can until I get a response.
Till Us accused Nome of trying to hit her immigration detention quotas rather than concentrating on dangerous undocumented immigrants. Nom denied interfering with any investigations in Washington. Amy Morris, Bloomberg Radio, All right.
Amy, thank you.
There are new developments in the Jeffrey Epstein investigation. The top lawyer at Goldman Sachs Kathy Rumler says she's accepted an invitation to testify before the House Oversight Committee on April twenty first. The Justice Department's files show Rumbler accepted tens of thousands of dollars of gifts from the late sex offender and offered advice on protecting his reputation in the years before he died. Rumnollyer announced plans to resign
from Goldman last month. Her spokeswoman says she did nothing wrong and did not know about Epstein's crime. The Oversight Committee is also requesting interviews with six other people, including Microsoft co founder Bill Gates and to Poblo Global Management co founder Leon Black. The panels asking for their testimony in May.
Let's turn to the markets now, Nathan and futures. They have turned higher. S and P futures now up a quarter percent, and this is aunder yesterday's losses on Wall Street. The S and P five hundred did fall almost one percent yesterday, but at one point it was down two and a half percent. Goldman Sachs chairman David Solomon says he's been surprised by the quote benign reaction and financial markets to the Middle East conflict he told the Australian
Financial Review Business Summit in Sydney. It will take weeks to understand more about the situation.
Well, it's been anything but benign. In South Korea, Karen.
The COSPY index there suffered its biggest one day crash on record, plunging another twelve percent today following a seven point two percent drop yesterday. The sell off is a reminder of how swiftly market exuberants can turn into anxiety in satiable demand for memory chips, and helped push the costp up nearly fifty percent at its peak this year.
Nathan Minneapolis FED president Neilkashkari said the war in the Middle East is clouding the picture on interest rates. Speaking at the Bloomberg and Best conference in New York, cash Caari says it's too soon to see the inflation impact from the conflict.
The labor market is pretty good, a little bit getting softer, but generally speaking, we're around the bands of our dual mandate, and so I felt like policy was in a pretty good place and we have the luxury of just letting it gradually glide back to neutral. Now we need to see with this new shock, potentially new shock hitting the global economy is how long is the effect and how big is the effect?
Minneapolis Fed President Neilkashkari had penciled in one interest rate cut this year, but he says the attacks on Iran make him less certain about that.
Programming note here now, Karen, as we've just seen this past weekend, markets may close on Friday, but the world doesn't. And that is why we're bringing you a new live radi and TV show, Bloomberg This Weekend, looks beyond the daily headlines to the bigger themes driving politics, business and culture. Joined David Gura, Christina Raffini, and Lisa Mattel 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, Bloomberg Television, and the Bloomberg Business App.
And it's time now for 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 Barr. Michael, Good Morning, Good Morning, Karen.
A federal judge ruled that New York City can continue its congestion pricing program. Judge Lewis Lyman found that the Trump administration's attempt to kill the program was arbitrary and capricious. After the decision, New York Governor Kathy Hokeel posted a short video online celebrating the ruling.
David New York is prevailed and all the attacks living Unleased pilate from adminstration on yeshising one again in court.
The ruling is a financial win for the Metropolitan Transportation Authority, which can keep operating the program and use its revenue to modernize the transit system. The Trump administration disagrees with the court's decision and is considering an appeal. A Georgia man who gave his teenage son the gun he is accused of using to kill two students and two teachers at a high school has been convicted of second degree
murder and involuntary manslaughter. Colin Gray also has found guilty Tuesday of all other charges in the September twenty twenty fourth shooting at Apalachi High School northeast of Atlanta. Prosecutors said Gray gave his son access to a gun and ammunition despite sufficient warning that Colt Gray would harm and endanger of the people. New York Mayor Zoron Mamdani and Governor Cathy Hochel unveiled the first neighborhoods to get free daycare for two year olds under the two Care program
I'm starting this fall. The first four communities that will receive two thousand two K seats include Washington Heights and the Rockaways. Mayor mem Donnie also responded to a local New York City radio host reference to him as a radical islam cockroach.
I am not ashamed of who I am. I am not ashamed of my faith. I am not ashamed of being the first Muslim mayor in the history of our city. And there's no amount of racism that will change the way in which I lead or the commitment that I hold to each and every New Yorker in the city.
Senator Chuck Schumer of New York condemned the radio host comments and a social media post. Schumer says, it's a disgusting display of bigotry and Islamophobia. Global news twenty four hours a day and whenever you want it with Bloomberg News Now 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 Darren for teams rankd the town to one in college basketball, all lost number nine Nebraska by twenty to UCLA, tenth thrank Texas Tech beaten by TCU, Number fourteen. Kansas fell to Arizona State in sixteenth ranked Alabama beaten by Georgia. Team USA with an exhibition game against the San Francisco Giants getting ready for the World Baseball Classic, USA won
it fifteen to one. Atlanta Brey's outfielder jerksenprof Profar, who served an eighty game suspension last year, will now serve a one hundred and sixty two game suspension for PD violation. That's a 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 album. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager.
With the war with Iran now into a fifth day, Fighting continues to spread across the Middle East with little sign of Led up. President Trump is promising the US will insure a safe passage of oil through the Gulf. As second Terry of State Marco Rubio continues to defend the president's decision to attack. The bottom line is this the President's determined we were not going to get hit first.
It's that simple, guys. We are not going to put American's troops in harmsway.
Secretary of State Marco Rubio in Washington. We're joined now by Bloomberg's Middle East Breaking News editor Patrick Sykes. And Patrick, if you could just catch us up on some of the latest headlines that have been coming out of the Middle East.
Good morning morning.
Yeah.
We saw just a few minutes ago in New York Times reporting that Iran's intelligence ministry had reached out indirectly to the CIA to talk about potential terms for ending the war that would be really de escalatory, if it's true. A slightly surprising place for an offer like that to come from. Obviously, it's been the Foreign Ministry and Iran diplomats that have been involved in most of the oureas
so far, and this Temporary Leadership Council as well. Other than that, I think the main thing is this strike we had a few minutes ago on the Saudi oil refinery. Just under line that the risks are still very high for energy assets in the region, and the Golf country's still very much been pulled into the conflict.
With this report of the attack on or the planned attack at least on Saudi Arabia's oil refinery. That puts more attention, doesn't it. On President Trump's promises assurances that the US would be able to provide a safe passage of oil through the Golf through an insurance program.
How would that work exactly?
I think that's a big question for many still in the industry. In theory, it sounds great, right, we'll handle the insurance, which is exactly what's gone up in price because of these events, and we'll escort you militarily with un naval assets in the region. I think the practicalities around the insurance are still very much to be clarified. And on the escort side, you know, that might provide some peace of mind. I think for many even that
wouldn't be enough. And the other thing is that you're still looking at a serious drop in volume of transits if that's happening, because you know they're only going to be able to do those controlled naval transits at a very steady pace with all the kind of precautions that they involved, So it's still not going to be anything like a return to normal.
You mentioned the headline from the New York Times about apparent outreach from Iran's spy agencies looking for a possible off ramp for this war within the first.
Day or so.
Who would be providing that off ramp given that Israel has been targeting the very room where experts are trying to name a new supreme leader.
Indeed, and I think the intelligence ministry itself has also been targeted. I mean, I think at a time like this, when the US is ready, strategy has kind of been to try and split up the Iranian state and break down those chains of command. It does remain to be seen kind of how authoritative any offer like that would be.
They're obviously hoping, we assume, for a kind of pliant constituency within Iran that would be willing to make a deal, end the war and resolve all of those contentious issues from nuclear to missiles that have brought us to this point. But as we've seen from the rhetoric and obviously the missiles that are still flying. There's still plenty of officials in Iran that clearly think they can win this war.
They can at least last out the US will to continue it, and for them it's an existential moment.
Thank you for this once again, Patrick, appreciate the update that is Patrick Syke's Middle East breaking news editor for Bloomberg News with us this morning from Istanbul. Want to turn now to domestic politics because we've had the kickoff of midterm election season with key primary races in Texas, North Carolina, Arkansas as well. One of the big ones for four terms, Republican Senator John Cornyn is headed to a runoff with State Attorney General Ken Paxton.
For more.
Let's bring in Bloomberg News Editor at Large Marty Schanker and Marty, I think we knew this was going to be a hotly contested race. What does this result tell us about what we can expect in November?
Good morning.
I don't know what you can say about November, but what we can say is that it's going to be one of the more expensive Senate runoffs in history. That John Cornyan already spent seventy million dollars to fend off Ken Paxton, and he just eked out a very narrow win, but still faces a runoff eighty days from now, and it's likely to be acrimonious and of national importance.
As it already has been.
Did the other candidate in this race, the other main candidate, Wesley Hunt, plays spoiler here or does this point to a bigger vulnerability for the incumbent?
Well, he definitely drew over twelve percent of the vote, which prevented either one of the other two candidates from getting the fifty percent needed to get the nomination itself, So he did play spoiler, but he won't be there for the runoff in May, so it'll be a Paxton Cornyn race and it's likely to be extremely nasty.
And whoever does come out of that race is going to face James Taalrico, a upstart on the Democratic side fending off Jasmine Crockett. That kind of ended a bit acrimoniously as well, didn't it.
Yeah, although not nearly as much as the Republicans. And don't forget that Donald Trump did not endorse the candidate on the Republican side. On the Democratic side, there were voting difficulties because they changed the rules at the last minute, and it was many Democratic voters were turned away from the polling booths.
And it'll be interested to see whether Jasmine Crockett makes that an issue or whether she just for the sake of unity, endorses tell Rico and the Democrats can move on against a race against what they hope is a weaker Ken Paxton.
Does this point to an issue that could crop up again in November?
This rule change.
Absolutely could, and it's not just in Texas. The redistinct redistricting efforts in a variety of states could cause some confusion at the polling place. But at the same time, the turnout in Texas and in South Carolina was extremely encouraging for Democrats. There was huge lines, voters seemed very motive, and that's probably a positive sign for the Democrats.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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