Trump Considers "Massive" Iran Attack, Imposes New Tariffs

Bloomberg Audio Studios, Podcasts, Radio News.
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 from the Middle East. More sirens are sounding
in Gulf Arab countries this morning, after the US wrapped
up a thirteenth night of attacks on Iran. The Associated
Presses reporting at least seven explosions have been heard near
base housing US forces near Urbiel in northern Iraq. That
says President Trump told Axios he is close to a
decision on a massive attack to try to bring Tehran
back to the negotiating table. UN Secretary General Antonio Guterres
is calling for diplomacy.
The situation he's getting out of control. It's tittering on
the edge of an imaginable.
The UN Secretary General Antonio Guterra spoke at a Security
Council meeting. Bloomberg's owner on reports mediation efforts have proved challenging.
The Iraqi Prime Minister did relay a truspropol to Iranians
from the US that was flat rejected. That's according to
The New York Times. Now the paper doesn't say what
exactly the contents of that proposal was but the narrative
coming out of Iran suggests that it was a short term,
temporary truth under the sixty day Original Truths that has
now all but collapsed.
And Boomberg zwner On reports in Iranian official is calling
that New York Times report quote completely misleading. That's according
to Iran state media.
In The conflict in the Middle East was just one
of the topics that came up at a special town
hall last night at United Nations headquarters in New York.
Bloomberg hosted six candidates vying to be the next UN
Secretary General. Former Coast Rican and Vice President Rebecca Grenspence
said the world body needs to be more engaged.
We should have engaged very early on with all the
actors to try to open up at least for the
benefit of the people that are suffering far away from
the situation in the state and foremost that is affecting everybody.
Along with Costa Rica, as Rebecca Grinspan for UN General
Assembly President Maria Fernando Espinoza argued, for a more fundamental issue.
Our responsibility is to make the UN relevant again, to deliver,
to touch the hearts and souls of people on the ground,
to serve people on the ground and not to confuse
activity with impact.
Also taking part in the UN town hall where Guyana's
ambassador Carolyn Rodriguez Berquette, former UN Human Rights Commissioner Michelle
Bachillette Mackie saw the former president of Senegal and International
Atomic Energy Agency Chief Raphael Grossi.
Another major story we're following this morning, Karen, involves global trade.
The US has begun collecting new duties on imports from
most of its major trading partners, and we get the
very latest from Bloomberg's John Tucker, John and Nathan.
This is the biggest move yet to try and reconstruct
President Trump's taros tarifs that were struck down by the
Supreme Court. The administration says it will now collect tariffs
of ten to twelve and a half percent on imports.
They took effect just after midnight. The administration says these
are the result of an investigation into forced labor in
supply chains that worked to the detriment of American workers.
It comes under section three oh one the nineteen seventy
four Trade Act. Now Asian Nations describe the administration's latest
tasks as baseless and unjustified, while stopping short of any
retaliation at the moment. Ultimately, it is American importers who pay.
Settling American importers with costs must carry risk politically for
Trump and his fellow Republicans less than four months from
midterm elections, with a focus for Democrats, as the elevated
cost of living in New York coome John Tucker Bloomberg Radio.
John, thank you. The Justice Department is dropping subpoenas to
New York Times reporters overstory detailing security concerns at the
President Trump'skatari donated Air Force One. The withdrawals came after
a federal judge critician the government for sloppy legal work.
The Times stories came out after President Trump flew home
from Turkey on the old Air Force One, prompting questions
about why the new aircraft wasn't used.
Certain of the markets now Karen futures are mostly higher
this morning, following yesterday's tech field selloff on Wall Street.
Helping feel this morning's gains is another tech name, Intel
that stuck, is up four percent pre market. The chip
maker delivered a revenue forecast that shattered Wall Street estimates
as booming data center spending field a long way to
turn around. Bloomberg Tech host ed Ludlow has more on
the results.
The market is a situation where CPU specifically is taking off.
For Intel, a lot of their top line performance is
answered by that. And in the core to gone, you
know that unit's growing fifty nine percent double what the
rest of the business is growing at. So they have
found their place in that market. But what they're battling
to do is improve their own operations, their own foundries,
and their own processes so they can get the CPU
product and people actually want out there into the real world.
And Bloomberg's head Ludlow says Intel sales will be fifteen
point eight to sixteen point eight billion dollars in the
third quarter. That is above the fifteen point one billion
dollar average analyst estament.
Nathan it was a bruising session for big tech yesterday.
The MAGS seven suffered their biggest one day drop since
the tariff sell off in April of last year. The
group lost almost eight hundred billion dollars in market value,
helping fuel the selloff. Disappointing earnings from Alphabet and Tesla.
Wall Street is growing increasingly concerned about one hundreds of
billions of dollars big tech is spending on AI all.
We're seeing big concerns about the latest surgeon energy prices
in the bond market, Karen. The average yield on the
Bloomberg Global Treasury Index has searched a three point six
eight percent that surpasses a peak from three years ago
to reach the highest level since the global financial crisis
in two thousand and eight. The pressure on both front
and long end yields comes ahead of key central bank
decisions next week, including the Bank of Japan, the Bank
of England, and the Federal Reserve.
There was another setback for SpaceX, Nathan. It's once again
dilated starship rocket flight due to unfavorable weather. It will
try again this evening. The rocket will be carrying upgraded
Starlink satellites that are intended to burn up later in
the atmosphere as part of the test mission. SpaceX has
lost more than a trillion dollars in market values since
its record closed five weeks ago.
Now we want to bring you a Bloomberg exclusive from
the Big Take, Karen. When the Trump administration shut down,
USAID officials rejected warnings that ending the agency's work would
put lives at risk. Now, a Bloomberg investigation has linked
an unfinished US funded irrigation project in Kenya to the
worst flooding one village has experienced in at least a decade.
Using interviews, satellite imagery, and government records, Bloomberg found the
abandoned project altered the flow of water, destroying crops and
fueling outbreaks of disease. Bloomberg Simon Marx worked on the investigation.
By pulling out overnight, they were really leaving a project
halfway through. So they had conducted a bunch of work
to this project, but they had also destroyed a lot
of the infrastructure in the area in the hope of
renovating it and bringing it back to life later. And
that in this case really brought about huge upheaval to
the local community because it changed what water was doing
within the irrigation scheme.
That's Bloomberg Simon Marx. The State Department did not answer
detailed questions from Bloomberg about the Kenya project, but it
does say that US Foreign Assistance is now more agile,
quicker to respond, and more accountable to taxpayers. The agency
says its global water strategy is being revised to align
with the Trump administration's America First policies, while decisions on
water and sanitation programs for twenty twenty six remain under review.
You can hear more from Bloomberg's investigation on the latest
episode of The Next Africa podcast. You can find that
wherever you get your podcasts.
Time Now for look at some of the o their
stories making news in New York and around the world,
and for that were joined by Bloomberg's Michael Barr Michael
good Morning, Good Morning Care.
In New York City, police arrested a man in connection
with two stabbings on Manhattan's Upper West Side Thursday afternoon
and our evaluating weather the attacks amount to hate crimes.
Commissioner Jessica Tish said. The victims, an Asian man and
a Jewish man, were taken to a hospital and are
both expected to survive. According to a person familiar with
the investigation, both men are in their fifties. The man
arrested was identified as fifty one year old Rouel Morales.
During both attacks in Central Park, witnesses said he yield
Alahu Akbar Arabic for God is Greatest. In Madison, Wisconsin.
The investigation continues into a police involved deadly shooting. The
city's mayor says the immediate focus is supporting the family
of the homeless man shot, Corey Ruiz, and the community.
Madison Council President Sabrina Madison, maybe we need to.
Be changed in our stannerds of what it looks like
to know that you're fit to be in.
Our community, serve in our community, because too often we
have a quarry.
Madison does not require police to wear body warn cameras.
A potential deal between the United States and Saudi Arabia
over nuclear energy announced this week has been thrown into question.
The agreement would see the US partner with Saudi Arabia
on developing the Saudi Civilian Nuclear Energy Program, but the
US demands that Saudi Arabia joined the Abraham Accords, which
would normalize relations with Israel, as part of the deal.
Democratic Representative Alexandria Ocassio Cortez in New York, we.
Are seeing an administration whose deals are more incentivized by
their desire to get rich on polymarket and crypto than
the needs and safety and security of the American people.
These deals should be about national interest and Instead, they
are about personal enrichment for whoever has an inn in
the White House.
Saudi Arabia has rejected normalization of diplomatic ties with Israel.
Un Less a Palestinian state is recognized Global news twenty
four hours a day and whenever you want it with
Bloomberg News Now. I'm 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.
Just five games on the Major League Baseball schedule on Thursday,
with the Brave slipping past the Padre six to five,
Twins beating the Guardians three to one and twelve innings,
Ray's losing to the Blue Jays three to one, Diamondbacks
dominating the Cardinals ten to six, while the Tigers got
past the Royals four to three. Baseball's top trade deadline target,
two time rating Alesian Award winner Tarek Scooble could be
making his final start for the Tigers tonight against the
Royals with a trade deadline coming up on August third.
Baltimore Ravens waving quarterback Diego Pavia less than three months
after signing the Heisman Trophy runner up. As an undrafted
free agent, Pavia had made headlines for his perceived cockiness,
as well as for criticizing Heisman voters. That's your Bloomberg
Sports update.
Stay with us more from Bloomberg Daybreak coming up after this.
Coast to coast on Bloomberg Radio nationwide on Serious Exam
and around the world on Bloomberg dot Com and the
Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. After a thirteenth straight night
of airstrikes on Iran, President Trump is said to be
close to a decision on a massive new attack to
try to bring Iran back to the negotiating table. Secretary
of State Marco Rubio says he agrees with the President.
Iran has not felt enough pain yet.
I saw a Rachi, their foreign minister, who who the
other day say or something about their policies.
An I for an eye.
The President's policy is a head for an eye.
I was Secretary of State Rubio to the aussion summit
in the Philippines. Joining us this morning from Dubai is
the head of Middle East coverage for Bloomberg News, Stuart
Livingston Wallace Stuart. The interview that the President gave to
Axios talking about this massive new attack he's considering has
certainly gotten a lot of attention. Where could this be
going now?
Good morning, Good morning, Nathan. Hard to tell. I mean,
there is certainly, I think a sense that more US
military equipment is being moved into the region. They obviously
already have a great deal here, and not at least
those two strike carrier groups that have been sitting in
the Arabian Sea for some time now. But again, on
the other flip side of this, you know, they already
tried a very intense series of bombardments in the first
couple of months of the war that didn't really appear
to get anywhere far in terms of diminishing Iran's ability
to threaten commercial shipping. And you know, the most recent
attack around or moves was on Tuesday, which is pretty recently,
so again, multiple rounds of attacks, particularly on those coastal
areas and military installations along there, don't seem to have
had much impact. And frankly, it doesn't take a great
deal in the way of threats from the Iranian size
to deter shipping. Because again, if I'm the captain of
a commercial tanker, commercial container ship. You know, it's not
particularly encouraging for me to have to go through there.
It clearly is a very dangerous environment.
In the meantime, we've seen this report for the New
York Times that the US proposed a new ceasefire proposal
through Iraq's Prime minister and Iran rejected it. What do
we know at this point about mediation efforts even as
the fighting continues to go on.
I mean, we know that there's been what they characterize
exchanges of messages and read into that what you will,
rather than negotiations, but clearly neither side are particularly satisfied
with the responses they're getting. You would presume, although we
don't know for a fact, that there'll be multiple parties
involved in this, not least from the Gulf Arab states
who obviously are you suffering terribly from this economically, So
we know Katar has been pretty involved, Obviously Pakistan is involved,
and I'm sure there are many others as well. Clearly,
it is in no one's interest within the region for
this to escalate further, because again, the damage being caused
to their economy is not least because of oil but
also gas and container shipping is pretty stole and there
needs to be some sort of effort to resolve there,
particularly around hall moves. But then obviously there's all this
other host of other issues that need to be addressed
as well.
But when we have the houthis starting to attack shipping
in the Red Sea and President Trump threatening to go
after one power plant or bridge for every ship that's
attacked in the Persian Gulf in our last thirty seconds here, Stuart,
what could that mean going forward?
I mean that is a deep concern. I mean it
is definitely a new front. Now, the Hooties obviously have
something of a track record of attacking commercial shipping, but
we saw those attacks on at least one Saudi old
tanker potentially to a couple of days ago, and that
is deeply concerning, and not least because of the offlow,
which was something of a lifeline with whole move shop,
but also because of the amount of general trade that
passes through there, I mean sewers, which is at the
top of that stretch water something like one sixth of
global trade, that is maritime trade under normal conditions, So
that's going to have a ripper Roy's across the global Economy.
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