Trump Declares Iran Ceasefire Over; NYC Aims to Stabilize High-Rise

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Good morning, I'm Karen Moscow and I'm Alexis christopherus. Here
are the stories we're following today, Alexis.
The big moves in the markets follow major developments in
the Middle East. The US and Iran have traded fire
in the Persian Gulf. The US carried out fresh strikes
in Iran, targeting more than eighty sites, including air defense
systems and Islamic Revolutionary Guard core small boats, and response
to Iranian attacks on ships and the straight up horror moves.
Speaking earlier in Turkey, President Trump said, the ceasefire is over.
To me, I think it's over. I don't want to
deal with them any with this scum. You know what
scum is. There's gum, there's sick people. They're led by
sick people and the vicious, violent people. And if they
had a nuclear weapon, they'd use it. As far as
I'm concerned, it's over. I'll speak to our new fotiators.
They want to negotiate. They're good people, Steve Woodcuff, Jared Kusher,
but they have to come back to me. As far
as I'm concerned, it's just a waste of time.
Dealing with them.
President Trump, speaking to reporters earlier today and anchor A Turkey.
Talks between the US and Iran have been paused since
last week while Iran conducts a week long mass funeral
for the late Supreme Leader Ali Hamedi.
Well, the latest escalation in the Middle East is at
the forefront. As NATO wraps up at summit in Turkey,
NATO Secretary General Mark Rudo through his full weight behind
America's latest strikes on Iran, and you.
Have a ceasefire, and Iran is basically violating the cease firing.
We see what happened yesterday with ships being intacked. I
think it is totally crucial that US forcefully reacts.
NATO Secretary General Mark Ruda says he wants allies to
confirm that Iran can never get nuclear weapons.
Alexis, NATO is considering foregoing next year's annual summit to
reduce tensions with President Trump and to avoid drawing attention
to the host being one of the alliances his lowest spenders.
Sources say the President's ongoing NATO criticisms have raised the
prospect that next year's summit, said to be held in
Albania could be postponed to avoid creating it another platform
for Trump to disparage allies.
And back here in New York City, officials are trying
to stabilize a high rise building in Manhattan in danger
of collapse. Bloombergs John Tucker joins us now in New
York City with the very latest John good morning.
And Alexis Bucklings. Structural columns and sangging floors in the
former Finzier headquarters on forty second Street send construction workers
scrambling and led to the evacuation of nearby buildings during
the height of the morning rush.
I walked in the office.
I was there for about ten minutes, and then they
were like, all right, everybody out, evacuate, get out now.
The fire department then use drones to inspect the thirty
three story skyscraper. Here's Mayor Maum Dunny.
If the floor is deemed to be secure, engineers will
enter and begin shoring up the building.
Well, the goodness is that things haven't gotten nanny worse.
New York City Buildings Commissioner Aucment to GANI, We've.
Been monitoring the building for many hours that have not
seen any movement.
A team has entered the structure and determined that contractors
can move forward now. With the installation of temporary shoring,
residents were allowed back into several of the seven buildings
that have been evacuated as a precaution. The project among
several reshaping the office stock of Midtown Manhattan as developers
convert aging office towers into apartments. In the York time,
John Tucker, Bloomberg.
Radio, All right, John, thank you. We turned to the
markets now. We're stocks are falling following the latest escalation
in the Middle East. In South Korea, the costs be
dropped more than five percent. It is now in a
bear market. It's dropp more than twenty percent since last
month's highs as the artificial intelligence rotation trade accelerates.
And here in the US, Karen futures are lower once again. Yesterday,
tech led stocks lower, with the NASDAK dropping more than
one percent. Shares of ship makers fell almost five percent.
Jordan Jackson is a global market strategist at JP Morgan
Asset Management.
Markets price off expectations and the bar for these earnings
expectations continue to re move higher. These chip makers delivered
stellar earnings. We're in a historic earning cycle right now,
but again that bar has been set significantly higher, so
it becomes more challenging for the markets to kind of
keep pace with this earnings projection.
JP Morgan Asset Management Global market strategist Jordan Jackson notes
the Philadelphia Stock Exchange Semiconductor Index is still up seventy
four percent this year.
Well. Alexis, after losing roughly one trillion dollars in market
value in less than two months in video, stock is
the cheapest it's been since before the AI boom cacked
off and sent the shares into the stratosphere. The stock
has tumbled sixteen percent since hitting an all time high
on May fourteenth, as investors rejigger the AI trade by
ditching and Nvidia in favor of competing semiconductor manufacturers, particularly
those in the memory market.
And Karen turning to the economy. Now, we're going to
get minutes from the Federal Reserves JOON meeting later today.
Bloo Here's Charlie Pellett has more.
The minutes will be the first from FED chair Kevin Warsh,
and according to Bloomberg Economics, they are likely to show
stronger support for rate hikes. Ross Mayfield is investment strategistic Bird.
Any signs of hawkishness, I'll keep an eye on. I
don't think the Fed and certainly Worsh want to hike here.
I don't think they feel the pressure to so. Any
you know, any signs of hawkishness from FMC members down
the bench, I think we'll be worth watching.
Bloomberg Economics says, given Warsh's communications overhaul, there is a risk,
but the minutes will take a different form, shorter or
less detailed in New York. Charlie Pellett Bloomberg Radio, Right.
Charlie, thank you.
Options traders are increasing bets at the broader market is
overestimating how much the feder Reserve will raise interest rates
this year. That of a shift began last week when
fedshairman Kevin Worsh said inflation risks have recently come down.
The swaps market is currently pricing around thirty two basis
points of rate hike premium by the end of the year.
Some strategist question given the current backdrop, including falling oil
prices and weaker than expected June jobs report.
Five h seven 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's Michael Barr. Good Morning, Michael, Good Morning.
Alexis Mains Democratic Party is urging Graham Plattner to immediately
withdraw from the race for US Senate seat following more
allegations of sexual assault. The state party's executive director, Devin
Murphy Anderson said in a video message that Platner must
drop out of this race in order to defeat longtime
Republican incumbent Senator Susan Collins.
We have repeatedly reiterated two Graham Platner's team that they
have no role in determining our next Democratic nominee for
the US Senate, nor in determining what this process looks
like legally.
Graham Platner has until next Monday to drop out of
the race to give the State Democratic Party time to
replace him on the ballot. More now, on buckling New
York City high rise building under construction, experts are weighing
in on possible causes. The founder of forensic engineering firm
Structural Workshop, Joe deep In Peo, says they will probably
look at weight distribution to see where plans might have
gone wrong.
You typically, the type of failure that we saw on
that column typically comes from either an overloading or firm
removing some kind of bracing and making the column longer.
Forensic engineering Joe deep Impeo says New York City has
some of the most intense regulations there are when it
comes to buildings, and this is a perfect example of
why the official death toll continues to climb from last
month's twin earthquakes in Venezuela. National Assembly President Jorge Rodriguez
says it is now at three thousand, six hundred and
eighty five people dead. The government also said sixteen seven
hundred and forty people have been injured and almost eighteen
thousand had been displaced. UN spokesman Stefan Dujarik says they
will also assess what other humanitarian needs Venezuela could have.
Meanwhile, on the ground, we along with our humanitarian partners,
are continuing to help coordinate and deliver assistance to meet
people's most urged needs and support of the government led efforts.
In Venezuela, authorities have recorded almost eleven hundred after shocks
since the June twenty fourth disaster. Global News twenty four
hours a day and whenever you want it with Bloomberg
News Now, how Michael Barr and this is Bloomberg.
Thanks Michael.
Time now for our Bloomberg Sports update, and for that
we bring in John stash Hour.
Nice Darren. The World Cup field is down to eight.
Team Switzerland's going to the quarterfinals for the first time
since nineteen fifty four. After playing a scoreless game with Columbia.
The Swiss one and penalty cakes. And what a comeback
by Argentina beating eage of three to two after trilling
two and nothing in the seventy ninth minute. What a
match at Wimbledon five set of between Novak Djokovic and
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Bloomberg Sports update.
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And the US carried out a new round of strikes
and around targeting more than eighty sites, and it revoked
a waiver allowing new sales of around oil, further imperiling
the peace agreement. After a series of attacks on ships
in the Strait of hor moves. In fact, speaking this
morning at the NATO summit in Turkey, President Trump said,
this could be the end of the ceasefire deal.
We make a deal.
Everyone's agreed, no nuclear weapon.
We make a deal. They go outside and talk to
the press. They say, we never.
Even talked about it. There's something wrong with them.
They're cuckoo.
So as I'm concerning you sover.
And we're joined now by a Bloomberg managing editor for
the Middle East owner and owner.
Good morning, So is this it?
Is?
This?
It for the ceasefire deal?
Could be? Trump said as much. But we know from
the past three months since this war began, he did
say many ambitious things about bringing a civilization to an end,
or you know, launching new attacks, and some of those
never materialized, luckily, so in this case it might as
well be the case again. But also there is a
possibility that the strikes, the US strikes and the retaliatory
attacks by Iran afterward this morning in and around straight
Orf muse may spread out of control and indeed bring
the current interim and fragile ceasefire to an end.
Karen, Yeah, let's talk about these latest strikes just a bit.
What have we seen and what really prompted this latest
round of strikes.
Well, yesterday, we believe that these three commercial tankers came
under attack while they tried to pass through the Hormous Strait,
and the US in response launched attacks across radar command
and control sites and anti shipballistic missile sites along Iran's
coast to the south of the country UH near the
near the Persian Gulf basically, and Iran in return retaliated
by launching missiles and dromes at the US Navy's fifth
Fleet in Bahrain as well as Ali Al Saalam Air
Base in Kuwait. Those are two primary basically places where
the US military operates in and around the Persian Gulf UH.
And after those retaliatory attacks, we saw the US President
basically coming out and saying during the NATO Samitenankara that
as far as he's concerned, UH, talking Terraneans a waste
of time and the ceasefire is basically over.
And how significant is it that the US also revoked
the waiver allowing around to sell oil globally.
It's quite significant, but its weight is more symbolic, or
impact is more symbolic than having an actual impact on
the physical market. Even before the US Treasury's decision to
revoke that waiver which allowed, or which was supposed to
allow Iran to sell its frute oil and oil products
to the rest of the world for a period of
sixty days, the Islamic Republic was finding it difficult to
actually sell its oil. It's done to many reasons, from
insurance to feries of sanctions and other complications that buyers
had in mind. And in Asia, for instance, its largest
export market outside of China, Iran was unable to sell
oil to anywhere. So the actual impact on a physical
market might be maybe more subdued than many peoplesume. And
I think going forward, the christ movement in the oil
markets is going to be more defined by what happens
to the ceasefire than the US Treasury's decision last night
on those waivers.
When will we really find out if discussions are over.
Are we going to have to wait until these funeral
proceedings are wrapped up with for the Supreme Leader which
is supposed to wrap up any day now, correct.
That's right.
They were supposed to wrap up tomorrow basically in Lashad
in Iran, which is where Khamane was born. But I
don't think we may have to wait that long. If
the ceasefire is actually over as Trump suggested, we should
see a resumption in hostilities pretty soon, unless, as was
the case previous or some of the previous rounds of escalation,
the two sides somehow again through negotiators and mediators such
as Qatar and Pakistan, agree to continue to talk and
leave this behind.
Karen, This is Bloomberg Daybreak, your morning podcast on the
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I'm Karen Moscow.
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It