Oil Rises on Report Israel May Strike Iran; Justice Department Opens Probe of Andrew Cuomo

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 Oil is on the rise this morning as well.
That follows a CNN report citing new US intelligence suggesting
Israel is preparing for a potential strike on Iran's nuclear facilities.
We get more from Bloomberg Middle East correspondent Dana Kraze.
It's not clear that Israel had made a final decision
on that, and there was quote deep on disagreements within
the administration about whether or the likelihood that Israel will
ultimately go ahead and attack a nuclear facility in Iran.
This option has always been on the table for both
Israel and the US. Israel thinks that Iran's nuclear program
and its entirety, threatened its existence. We know Israel would
do it, but many have said that if Israel would
go ahead with that, it won't do it without US approval,
And that's of course the big question here.
Would the US give the go ahead for that?
Bloomberg Standard Crez says an attack by Israel would add
to unrest in the Middle East, which supplies about a
third of the world's crued and checking prices. Right now,
Nymex Crud's up one and a half percent, or ninety
four cents hired sixty two dollars ninety seven cents per barrel.
Brent crude is up one point four percent at sixty
six dollars twenty eight cents.
Now to the latest from Washington, D C. Nathan.
Right now, members of the House Rules Committee are debating
President trump so called Big Beautiful Tax and Spending Cut bill.
They scheduled this session at one o'clock in the morning
after the President made a personal appearance on Capitol Hill
to pressure Republicans to put their differences aside over the legislation.
We want to benefit Republicans because they are the ones
that are going to make America great again.
The Democrats are destroying our country.
President Trump, heard alive here on Bloomberg, says Republicans from
high tax states who are pushing for a higher state
and local tax deduction should accept the thirty thousand dollars
cap in the bill that's three times higher than the
current ten thousand dollars limit. New York Republican Nicole Meliatakis
says she agrees.
You know a thirty thousand dollars deduction on salt not
only covers ninety eight percent of my district, but it'll
put thousands of dollars into the pockets of my constituents,
allowing them to keep more of their hard earned money.
In New York's Nicole Meliatakis appeared on Bloomberg's Balance of Power.
But a higher salt cap could anger ultra conservatives concerned
about the size of the tax cuts.
Here and we turned to a developing story. Now, Andrew Cuomo,
who's running for mayor of New York City, is reportedly
under criminal investigation at the Justice Department. Let's get the
very latest with Bloomberg's John Tucker, John.
And Nathan is the New York Times that says the
Trump Administration's Department of Justice has opened in investigation into
the former governor. It concerns his testimony to Congress during
the coronavirus pandemic. Cuomo was forced to defend how he
handled the spread of the virus in nursing homes. It
was at a politically charged hearing last year. Republicans accused
him of lying. Cuomo spokesman says this is lawfair and
election interference plan and simple. Now, the reported investigation into
Cuomo comes in the wake of the Trump administration ordering
federal prosecutors to drop a corruption case against Mayor Eric Adams. Well,
that has sparked concerned among Democrats, but the presidents using
the judicial system for political purposes. Both Adams and Cuomo
are running for mayor in the upcoming New York election,
and Cuomo's leading all the candidate has seen the polling,
including Adams in New York. I'm John Tucker, Bloomberg Radio.
All right, John, thank you.
Well, let's start to the Marcus now, where futures are
lower following the first loss for stocks in six sessions.
The S and P five hundred and found four tenths
of up percent. Morgan Stanley chief US equity strategist Mike
Wilson thinks stocks are heading higher.
If you think about this administration, they came in doing
all the sort of growth negative policy changes. The start,
you could say the president is acting a new CEO.
He's coming in sort of kitchen sinking it. And then
in the second half is when the more positive strategies
or policies will start to flow through things like deregulation.
We think they'll be success in passing this tax bill
or budget reconciliation.
Morgan Stanley, Chief, you have secretary strategist Mike Wilson forecast
the s and P five hundred. I'll be at sixty
five hundred by the second quarter of twenty twenty six.
That's about ten percent higher than current levels.
Well, Karen, Tesla was the only one of the so
called Magnificent seven stocks that rose yesterday, gained a half percent.
That came after CEO Elon Musk said he's committed to
leading the company for the next five years. Speaking exclusively
to Bloomberg at the Cultro Economic Forum, the billionaire, who
has been Tesla's CEO since two thousand and eight, dismissed
concerns over falling sales in Europe.
Europe is our weakness market.
We're stronger everywhere else, so NOWDA sales are doing well
at this point, anticipate any meaningful sales shortfall.
I was Tesla's CEO Elon Musk, speaking with Bloomberg's Michelle
Hussain at the Coatro Economic Forum. For their full conversation
to the Bloomberg podcast page on YouTube.
That's turned to the economy Now. Nathan and Bridgewater Associates
founder Ray Dahalio says the FED should.
Not be cutting interest rates right now.
He spoke to Bloomberg and Ali Bosik at BMP Parabas
Annual Global Electric Vehicle and Mobility Conference.
I think the markets if they were to see a
too aggressive cut and monetary policy two inappropriate cut, that
it would actually bear be bad for the bottom.
Market and Ray Dalio, they're speaking with the Bloomberg and
Ali Basik. That full conversation also available to watch on
the Bloomberg podcast page on YouTube.
Later this week, care and we're expecting a conversation between
Treasury Secretary Scott Bessant and the Chancellor of the Exchequer
of the UK, Rachel Reeves. Going be on the sidelines
of the Group of Seven Finance Ministers meeting in Canada,
their first in person discussion since the US and Britain
announced it an outline for a trade deal. Earlier this week,
we get more from Bloomberg to James Wilcock in London.
It was hailed as a full and comprehensive trade deal
by US President Donald Trump, but the UK and the
US still haven't set a date for when twer productions
will come into effects. The two sides are also working
through sticky differences on how to regulate big tech and
potential taxes on the pharmaceutical industry. Both sides enjoyed the
showmanship of announcing a first post Liberation Day trade deal,
but now the question is when does the detail arrive
in London. James Wilcock, Bloomberg Radio.
All right, James, thank you.
While there's new tensions between the US and China weeks
after their trade truth, the Chinese Commerce Ministry is threatening
legal action against anyone that enforces the Trump administration's export controls.
On Wahwait ships.
A statement from the agency says that curbs could violate
China's anti foreign sanctions law and undermine the latest trade.
Talks in Geneva.
The US Commerce Department had warned that using Wahwait ships
anywhere in the world would violate export controls, but it
later removed that place reference.
Time Now for a.
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.
The Federal Aviation Administration is cutting the number of flights
at Newark Airport after a number of air traffic control issues.
Bloomberg's Lisa Matteo has the details.
The FAA said it will allow a maximum of twenty
eight arrivals per hour at the airport through June fifteenth,
when daily construction on one of its runways ends. After that,
thirty four planes will be permitted to land each hour
until October twenty fifth. Aviation safety regulators are also taking
steps to upgrade the infrastructure and increase staffing. The moves
come after technology outages and staffing issues cause hundreds of
flight cancelations and delays. Lisa Matteo Bloomberg Radio.
Leaders of the Congressional Black Caucus, Democratic Women's Caucus, Congressional
Progressive Caucus, and Democratic members of New Jersey's Congressional Delation
held a news conference in support of Democratic Representative Lamonica
mc ivor Thedjy charge of the New Jersey congresswoman with
allegedly assaulting law enforcement officers outside an iced attention facility
earlier this month. New Jersey Senator Corey Booker.
Fear is understandable, but fear that freezes is unacceptable. We
need to turn our fear into fight understanding that the
other side of fear is courage.
Senator Booker used to be the mayor of Newark. The
mother of Cassie Ventura says she paid rap mogul Sean
Diddy Combs twenty thousand dollars in twenty eleven when he
demanded the money because he was mad that her daughter
had started dating someone else. Regina Ventura testify that she
made the payment fearing for her daughter's safety. She said
Combs return the money days later. Combs has pleaded not
guilty to sex trafficking and racketeering charges. George went who
played the beer loving Norm Peters on the hit nineteen
eighties TV comedy series Cheers, has.
Nined Know then Joe, Start your taps.
When earned six straight Emmy Award nominations for Best Supporting
Actor in the Comedy Series. He also crafted a stage
career that took him to Broadway. George Went West seventy
six 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.
All right, Michael Barr, thank you.
Time now for the Bloomberg Sports update. Here shout and
stash hour John Giburning, do you want to hear it?
In Boston and Mets played the game without any one
solo lack of hustle issues, but also without any met run.
Shut out by seven Red Sox pitchers held only four hits.
The Socks hit two solo home runs at the fifth
inning off Clay Holmes and won two nothing to get
back to five hundred. For the slumping Mets, it's their
first three game losing streak.
In their last six.
Games, five losses and not a single home run hit.
The Mets had gone six games without a homer in
ten years. The Yankees hosting Texas, they did leave the
yard high.
Drive right field, Glarcia turns look see ya into the
second deep Rice the Rice with a solo shot.
Kankees lead one nothing.
I'm the s Network In eighth in a two run
over by Aaron Judges. Sixteenth, Yanks beat the Rangers five
to two. They had a shutout until two outs of
the ninth. Yanks move a season high nine games over
five hundred. Nationals beat the Braves five to three. Dodgers
beat Arizona and tennings to end their four game losing three.
NBA Playoffs, Game one in the West Oklahoma City, down
four and a half, time won the second half from
Minnesota seventy to forty one. Game one one, fourteen to
eighty eight at the Guard of Tonight, the first Knicks
Conference finals game in twenty five years. The last one
was also against Indiana, and Tom Thibodeaux back then was
a Knicks assistant.
I think that's what makes the playoffs so great is
the competition. People want to see a great competition. I think,
you know, oftentimes style of play can change. It could
be fast paced, sometimes it's slow paced. The nineties it
was a crawl. Now the game's a lot faster, a
lot more skilled. It's different, but the competition part was
always the same.
That series back in two thousand and ended a run
with a Nixon. Pacers met in the playoffs six times
in eight years. Stanley Cup Playoffs, Game one of the
East Florida won five to two at Carolina. The NFL
voted to allow its players to play Olympic flag football
in twenty twenty eight in Los Angeles. Sam Stashaway Bloomberg
Sports Karen Nathan.
Coast to Coast on Bloomberg Radio nationwide on Sirius XM
and around the world on Bloomberg dot Com and the
Bloomberg Business app.
This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. Geopolitical tensions maybe adding a
new headwind to the market this morning on reports US
intelligence could be pointing to Israel preparing for an attack
on Iran's nuclear facilities. The report has oil prices moving
higher this morning. Or We're joined by Bloomberg's News director
for Europe, the Middle East and Africa, Rosalind Mathis and
Roz Good morning.
What do we know about this?
A CNN report that Israel could be making these preparations.
Well, in fact, there's been these reports periodically for quite
some months now that Israel is looking more in depth
at the possibility of making a strike on Iran's nuclear facilities.
We saw this with some of the tit for tat
strikes that happened between the two countries last year, and
whether this would be one of the options that came
onto the table. So in essence, in itself, the fact
that Israel is looking at this is nothing new, and
you can see the oil didn't move massively on it
as a result. So maybe the markets doesn't think that
something is imminent. The question is there is anything shifting
in the Israeli thinking on this as part of these reports.
Is this pointing to them perhaps hardening their position towards
something and if so, why would that be happening. Is
it because that the Israeli administration of Benjamin Etnier, who
is frustrated with the situation in Gaza. You know, they
are talking about a much bigger scale military operation there
against hamas they feel that Iran has been weakened and
their proxies in recent times. They're worried about the pathway
towards nuclear enrichment and see perhaps a window closing for
them to take action against.
These nuclear sites.
So it's a bit hard to know if there's been
a shift in the calculus for Israel and whether this
is becoming more of a prospect, but to say it
has been something we know that they've discussed on and
off for quite some time. What we need to understand
is whether there's anything that has changed that might make
this more realistic.
And I guess what could be feeding into that potential
calculus riz is the sort of frame of the relationship
that we've started to see just a bit some evidence
of that, at least between Israel and the Trump administration,
as these nuclear talks with Iran have been going on, right,
And a.
Key faturalist would also be, you know, the US perspective,
because as you say, there has seemed to be a
bit of a cooling between Donald Trump and Benjamin Netanya,
who Donald Trump frustrated about the fact there's not a
holding ceasefire for Gaza. And also he's talking about trying
to get an Iran deal done while warning you know
that if Iran doesn't come to the table that he'll
revert to a maximust posture. So it's very clear also
from Donald Trump's visit to the region last week, he
was talking about a message of wanting stability, relative stability
in the region. He wants to focus on business, trade,
investment ties, the Abraham Accords, and you know, if Israel
does make a move against Iran's nuclear facilities, all of
that's probably off the table. It would be dramatic escalation militarily.
So be very interesting to know what, if anything, the
US messaging to Israel.
Is on this.
Does he say, you know to Benjamin ettiaw you go ahead,
but make it quick get it done equally. Israel militarily
would probably require outside help to make such an attack
on these facilities. They're very deep in the ground, they're
very hard to get to, and would other countries be
willing to provide that support, including the US. So there's
a lot we don't know here about the pathway towards
potential action. Nothing does seem imminent from Israel on it,
but it's interesting to see it again.
It appears to be in the ETHO.
Appreciate the debrief as always. Ros Matheson, Bloomberg News Director
for Europe, the Middle East and Africa with us this
morning and on these reports, Karen, we are seeing crudal
prices move higher on the session. Right now, nimex is
up one point seven percent, just above sixty three dollars
a barrel.
Well, Nathan, we also want to repeat some of our
top stories this morning. President Trump is telling Republicans not
to let the state and local tax deduction or custom
medicaid get in the way of passing his tax cut bill.
The House Rules Committee is debating it right now.
The Justice Departments reportedly investigating former New York Governor Andrew
Cuomo over his Congressional testimony about actions during COVID. Cuomo
is now accusing GJ of interfering with his run for
New York City mayor.
And futures they're moving lower.
After Wall Street six day winning run came to an
end yesterday, Bridgewater founder Ray Dalio says now is not
the time for the FED to cut rates, and we
have more on those stories coming up on Bloomberg Daybreak,
But now we want to turn our discussion to Tesla
founder and the world's richest man, Elon Musk. He joined
our Michelle Hussein for a discussion at the Cutter Economic Forum.
They discussed his political and business roles, his commitments to Tesla,
and whether he will continue his large political donations and
involvement in politics.
Let's listen, in.
Europe is our weakest market. We're stronger everywhere else.
So now sales are doing well at this point, anticipate
any any meaningful sales shortfall, and obviously the stock market
recognizes that since we're now back over at trillion dollars
in market caps, so I believe the market is aware of.
The situation, so it's already to around.
But sales still down compared to this time last year.
In Europe. In Europe, okay, and that's true of all manufacturers.
No accessions.
Okay, but you would acknowledge, wouldn't you that what you
are facing. Okay, let's just take it as Europe, what
you are facing is a significant problem. This Tesla is
an incredibly aspirational brand. People identified with it, it saw it,
They saw it as being at the forefront of the
climate crisis. And now people are driving around with stickers
in their car saying I bought this before we knew
Elon was crazy.
And there are also people who are by buying it
because Elon's crazy, or however they may view it. So, yes,
we've lost some sales, perhaps on the left, but we've
gained them on the right. The sales numbers at this
point are strong and we've seen no problem with them.
Had tell me then, how committed you are to Tesla.
Do you see yourself and now you committed to still
being the chief executive of Tesla in five years time? Yes,
no doubt about that at all.
Well, no, I might die.
Does that mean that the value of your pay doesn't
have any bearing on your decision?
Well, that's not really serject discussion in this forum. I
think Obviously there should be a conversation for if there's
something incredible is done, that compensation should match that something
incredible was done. But I'm confident that whatever the whatever
some activists posing as a judge in Delaware happens to
do will not affect the future compensation.
This is the judge you twice struck down the fifty
six billion dollar pay package that was that was awarded
to you. I think the value on the basis on
the current value of stock options.
Yeah, not a judge, not a judge.
The activist who is causplaying a judge in a Halloween costume.
Okay, that's that's your characterization. I think that on the
current value of stock options. I think the actual justice
according to the law, on the current value of stock options.
I think the value of that pay package stands at
about one hundred billion dollars. Are you saying you are
relaxed about the value of your future pay package. Your
decision to be committed to Tesla for the next five
years as long as you are still with us on
this planet is completely independent of pay. No, it's not independent.
So pay is a relevant factor then to your commitment
to Tesla.
A sufficient voting control such that I cannot be ousted
by activists investors is what matters to me. And I've
said this publicly many times, but let's not have this
whole thing be a discussion of my list pay. It's
not a money thing. It's a reasonable control thing over
the future of the company, especially for building millions, potentially
billions of human oroid robots. I can't be sitting there
and weren't going to get tossed out by for political
reasons by activists.
That would be unacceptable. That's all that matters. Now, let's
move on.
Okay, Well, one question before we move on to other companies,
which is that I wonder if some of what you've
has happened to Tesla in the last few months, did
you take it personally?
Yes?
And did it make you regret any of you all
think twice about your political endeavors.
I did what needed to be done, the violent antibody reaction,
and I'm not someone who's ever committed violence, and yet
massive violence was committed against my companies, massive violence was
threatened against me. Who are these people? Why would they
do that? How wrong can they be? They're on the
wrong side of history and that's an evil thing to do,
to go and damage some coinnocent person's car to threaten
to kill me.
What's wrong with these people?
Have not harmed anyone, so something needs to be done
about them, and a number of them are going to
prison and they deserve it.
Finally, political, your political influence. I wondered whether you have
decided yet how much you're going to spend on the
upcoming midterms. Is it you spent a lot more money
on the last US election than you envisaged when you
were speaking here three years ago. Are you going to
continue to spend at that kind of level on future elections?
In terms of political spending, I'm going to do a
lot less in the future.
And why is that?
I think I've done enough?
Is it because of blowback?
Well, if I see a reason to do political spending
in the future, I will do it.
Currently see reason.
And that was Tesla's CEO, Elon Musk, speaking with Bloomberg's
Michelle who's seen in a wide ranging conversation from the
Cutter Economic Forum. And we're pleased to tell you that
Michelle is with us now editor at large for Bloomberg
Weekend this morning. After that, more than half hour talk
virtually in cutter Michelle, good morning. Very interesting to Elon Musk,
you know, seeming undeterred really by what really feels like
politicization of the Tesla brand. He almost sounded like he
was embraced it to some extent. What are your thoughts?
There was definitely a lot to take in. We spoke
for nearly forty minutes, so it is a chance to
have a conversation that is corporate and that touched on politics,
but is also personal, and you heard from their he
sounded upset at times when he talked about what Tesla
drivers or Tesla dealerships have experienced and the threats to
him personally. I think as far as Tesla is concerned,
you know we heard this before in the earnings call,
but he feels that he is the answers and his
presence back at Tesla, apart from the one to two
days a week that he spends on government work, is
going to turn the ship around. I have to say
the picture the declines I've pointed to in Europe, they
are very serious. In big markets like Sweden, for example,
eighty percent and lower sales than this time last year.
That was the picture in April compared to the previous April,
and fewer vehicles were shipped from Tesla's plants in China's
well last month. Again, that's been the picture for a
number of months. So he does have a task to do.
But he's a person who's faced many obstacles in the past,
and he clearly feels that this is going to be
what he's going to do again. And I think it's
also interesting to see the kind of distance that he's
putting between himself and the administration to some extent, referring
to does for example, much more as advisors than as
actors within the administration.
And also to your point, pointing out that he's going
to be and as he put it, significantly pairing back
his political spending. That could be a blow to not
just President Trump potentially, but for Republicans, his fellow Republicans
heading into a midterm election next year.
Indeed, but you know, he did leave the door open,
didn't he, Because when he says he envisited, is doing
a lot less in the future now, a lot less
than the upwards of two hundred and fifty million dollars
that he's spent on getting Donald Trump elected, is potentially
still a lot of money. And he also said, you know, essentially,
if he sees a reason, then he will do so again.
So I think perhaps the door is open to some
kind of negotiating tactic, whether it's with the President in
his circle or with other Republicans. And there'll be other
parts of the world, the UK, germaney which will be
interested in what he said on that and wondering whether
he might use his political influence to different degrees where
they are.
You have to wonder though, whether Elon Musk can continue
to divide his attention in the way he has with
the Doe jeffort in Washington, DC, as well as running
not just Tesla, but SpaceX, Starlink, all these other ventures.
In our last minute, where do you see things going
for Elon Musk after this long conversation.
Well, I think this conversation really did confirm that the
corporate sphere is where he is going to try and
focus his energies. Look, he has tremendous capacities already running
multiple companies before he entered his government role. I suspect,
reading between the lines, that this has the blowback, as
he would call it, has been far beyond what he anticipated.
He would blame others for that rather than his own decisions.
But I asked him at the end whether this was
a pivotal year for him, and he didn't go as
far as that, but I think it's almost certainly been
a year like no other in his life so far.
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