Trump Maintains Pressure on Iran; King Charles Speaks to Congress

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 US Iran War, now entering
its third month. President Trump said in a truth social post,
Iran is in a state of collapse, and the Wall
Street Journal is reporting the President's told aides to prepare
for an extended blockade of the Strait of Horror, moves
as the US looks to choke off Tehran's oil exports.
Presidents discuss the war at the State dinner with the
UK's King Charles last night.
We're doing a little Middle East work right now too.
If you might know, now, we're doing very well. We
have militarily defeated that particular opponent, and we're never going
to let that opponent ever. Charles agrees with me even
more than I do. We're never going to let that
opponent have a nuclear weapon.
They know that now.
Ron's signaled it could reopen the Strait of Hormus exchange
for the US lifting its naval blockade, while Iran would
also postpone negotiations over its nuclear program. But the journal
says President Trump has rejected that offer. This morning, the
President posted online that Iran doesn't know how to sign
a non nuclear deal and needs to quote get smart soon.
The post included an image of the president wearing sunglasses
and holding an assault rifle with the caption no more
mister nice guy.
Meanwhile, Nathan, oil prices are made firmly and triple digits
this morning. Checking the price of oil right now, Ninemax
screwed again, up three point four percent, is at one
hundred three dollars thirty three cents of barrel. Brent is
up two point eight percent at one hundred and fourteen
dollars forty two cents. Don Strouiven is Goldman Sachs co
head of Global Commodities Research and expects growth to slow.
Our Brent upgrades to ninety dollars barrel by the fourth quarter.
That's thirty dollars higher almost than our forecast before the work.
That would be even higher around one hundred dollars baberyl
if we did not incorporate rates some significant demand losses.
We now look for global oil demand to stack.
Nate and Don Stroivan spoke to Bloomberg after his team
at Goldman Warren that the current drawdown of stockpiles is
quote extreme.
Also shaking up the global oil market Karen the United
Arab Emirates saying it is leaving OPEC and OPEK Plus
as of this Friday. The nation's Energy Minister su Hail
al Mazrui says responding to the Iran conflict requires extraordinary measures.
We believe leaving the group now will enable us to
attain to the market requirements at that pace.
That is approp of it.
From all our point of view, and we don't want
to be constrained by any other groups.
UEE Energy Minister su Hail al Mazroui spoke to Bloomberg's
Jumana Borsecci Amuradi officials have signaled they'll boost production when
the Strait of Hormuz reopens.
Well. Back in Washington, Nathan Britten's King Charles the Third
called on the US to maintain it's a leadership role
in the world in a speech to Congress and Bloomberg's
Amy Morris has more from the nation's capital.
It was the first such address by a British monarch
in more than three decades. King Charles used the address
to a joint session of Congress to argue for preserving
the alliance between the UK and the US.
That allons is part of what Henry Kissinger described as
Kennedy's Soren vision of an Atlantic partnership based on twin
pillars Europe and America. That partnership, I believe, mister Speaker,
is more important today than it has ever been.
The King's visit comes at a critical time as the
two countries are experiencing strained relations over the war in Iran.
In Washington, Amy Moore as Bloomberg Radio.
All Right, Amy, thank you. Elsewhere in Washington, former FBI
Director James Commey has been indicted again by the Trump administration.
This time he's charged with threatening the President's life. The
case centers on a photo Comy posted online showing the
numbers eighty six and forty seven arranged with seashells. Critics
say that could be interpreted as a reference to killing
President Trump. Here's Acting Attorney General Todd Blanche.
While this case is unique and this indictment stands out
because of the name of the defendant, his alleged conduct
is the same kind of conduct that we will never
tolerate and that we will always investigate and regularly prosecute.
I was acting Attorney General. Todd Blanche Comey's lawyer says
his client vigorously denies the charges.
Well, it's certain the economy now, Nathan, and the Fed's
latest interest rate announcement comes today at what's likely J.
Powell's final meeting as FED chair In Bloomberg's Michael McKee
has a.
Preview, Expectations are low for the two day meeting. Oil
prices are continuing to rise, and it appears little progress
is being made on ending the Iran war. Additional tariffs
are coming. PCE Inflation reported Thursday is forecast to hit
three and a half percent, a long way from the
Fed's two percent target. But policymakers will be changing interest rates,
they will not be making new economic forecasts, and there's
no new dot plot.
It's likely J.
Powell's last FED meeting as chairman, so analysts, investors, and
the President of the United States will be anxious to
hear if Powell gives any hint of his future plans.
His term as chair ends May fifteenth, but he can
remain on the Board of Governors until twenty twenty eight.
Will he stay or will he go? Michael McKee Bloomberg Radio.
Now, along with that FED decision, Karen, investors are getting
ready for earnings from some big tech juggernauts, and Bloomberg's
John Tucker's here with a preview.
It's a sixteen trillion dollar earnings week, representing a quarter
of the S and P five hundreds market cap. Today,
after the close, we're going to hear from Alphabet, Microsoft,
Meta Platforms, and Amazon. Joeanne Feenie is a partner at
Advisor's Capital Management that tells Bloomberg what she's watching.
We're going to see, I believe, increase commitment to further
data center builds. We're going to probably see increases in
capital spending budgets, and you know, I think that's going
to give investors some reassurance that this is going to
go on for many years to come.
Big tech earnings continue tomorrow as well, with Apple reporting
after the close. You know, Yorkcome, John Tucker, Bloomberg Radio.
All right, John, thank you. The FCC is starting an
early review of ABC's TV station licenses, tied to the
Commission's inquiry into parent Disney's DEI practices. FCC Chairman Brendan
car says eight stations need to file for license renewals.
Early licenses come due every so often. You can accelerate
when a license come due and say, hey, we have
significant concerns value of conducting your operations. We want to
review your license now in decide from the public interest.
If we find that a broadcaster hasn't been doing that,
then the statue requires us to issue a hearing designation order.
FCC chairman Brendan Carr reportedly believes Disney gave employees different
opportunities based on race and gender. Disney said is confident
it's record it demonstrates quote continued qualifications as licensees. The
news comes as Business Insider reports Disney CEO Josh Tomorrow
has decided not to spin off the company's ESPN networks.
Back on Wall Street, Karen Bill Ackman's combined initial public
offering for his closed end fund and alternative asset manager
has raised five billion dollars. The IPO was set to
raise as much as ten billion. It will result in
two listed entities, the closed end fund Pershing Square USA,
and asset manager Pershing Square and.
Finally, Nathan. The State Department says it's preparing a limited
release of commemorative passports with President Trump's picture inside time
to America's two hundred and fiftieth birthday. It'll be the
first time a living president has been featured on the
travel document. Twenty five to thirty thousand of the new
passports will be available at the Washington, DC Passport Office
starting just before July.
Fourth.
Time Now for look at some of the other stories
making news in New York and a on the world.
And for that we're joined by Bloomberg's Michael Barr Michael,
good Morning, Good.
Morning, Karen. Billionaires Elon Musk and Ai executive Sam Altman
are expected to take the stand at a trial in
which Musk is suing Altman. Musk says he was tricked
into investing in open Ai as a nonprofit, claiming Altman
intended to turn the company into a for profit business.
Open Ai did that last year and appears to be
readying for a big IPO later this year. Musk left
open Ai in twenty eighteen. Musk is basically looking for
open ai to reverse its decision, for it to go
back being a nonprofit, and for the company to pay
back all the profits it has made to the company's charity,
Severe Storm Slam Texas after days of relentless whether a
possible tornado touching down in the city of Mineral Wells
outside Fort Worth, injuring several people and causing widespread damage.
It hit and all of our windows who were busting,
and there was flying around in our living room.
Fire Chief Ryan Dunn.
In the industrial area, we do have major damage and
major hazards that are all across the road. So stand
out of that area is going to be very detrimental
to people not getting injured.
Chief Done says the roofs of some homes ripped off,
one even landing in the middle of the street. The
woman at the center of Harvey Weinstein's rape retrial was
on the stand. Lawyers for the disgraced movie mogul have
not yet had their chance to question Jessica Mann at
this retrial, but have argued that everything that happened between
the two was consensual. Weinstein's rape accuser told jurors for
the third time that the former Hollywood producer had trapped
her in a New York hotel room and assaulted her
in twenty thirteen. Man cries as she testifies that she
repeatedly said no and tried to leave the room, but
said he treated her like he owned her. Weinstein denies
the allegation. Global News twenty four hours a day and
whenever you wanted with the Bloomberg News. Now, I'm Michael Barr,
and this is Bloomberg.
Keren Well, Thanks Michael.
Time now for our Bloomberg Sports Update, and for that
we bring in John Stashauer.
Thanks Darren.
At the NBA Playoffs, San Antonio beat Portland and won
that series four games to one. In the East, the
Nicks blew out the Hawks in New York for a
three to two series lead. In Boston, the Sixers stayed alive.
They beat the Celtics, who are still up three to two.
The Phillies won ninety six games last season. They've struggled
this year, and they fired manager Rob Thompson and replaced
them on an interim basis with their bench coach Don Mattingley.
They offered the job to Alex Korra, just fired in Boston.
He turned it down. That's the Bloomberg Sports Update.
Stay with us more from Bloomberg Day Break coming up
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Bloomberg Business app.
This is Bloomberg Daybreak.
Good morning.
I'm Nathan Hagar.
Head into the third month of war between the US
and Iran. It appears to be turning into a lengthy
standoff in and around the Persian Gulf, with the Wall
Street Journal reporting President Trump has told AIDS to prepare
for a lengthy blockade of the Strait of Hormuze joining
US from Dubai. This morning is Bloomberg Middle East Correspondent,
anchor of Bloomberg Horizons, Jumana Borsecci Jumana. What more do
we know about this report and the effort to squeeze
Iran's economy?
Good morning, Yeah, good morning. A couple of things are
emerging here.
And remember we've been talking throughout the course of this week,
that about the Iranian side having presented their proposal to
the US about a phased approach to ending the war,
first starting with the mutual lifting of the blockade and
then eventually differing the discussions around the nuclear file TOI later. Now,
from what we understand the reporting that has emerged in
the last twenty four hours the Wall Street Journal this morning,
all of the suggestions are that this is actually not
going to fly with the US administration, and I just
want to it's rights here. We haven't got a formal
response yet from the White House, but the Wall Street
Journal article is suggesting that the US President Trump he's
considered all of the different options, including quite literally ending
the war walking away. The other option is a resumption
of hostilities, given the tremendous amount of military acids that
are still in the region. And then the third option
is to just keep on with this US naval blockade
perhaps a few more weeks, with the view that the
longer it goes on for the more the Iranian economy
is going to start hurting.
Now, that is what the Wall Street Journal were reporting.
We also need to pair that up with the true
social posts that Trump put up about.
An hour ago, where he said Iran.
Can't get their act together, they don't know how to
sign a non nuclear deal. They better get smart soon,
which would also suggest he's losing his patients, and then
also raises the possibility once again, Nathan of perhaps say
a resumption of hostilities. So we can't completely rule that
out now with this latest post that's come through from
President Trump.
Yeah, it did seem like we saw a little bit
of a spike in what's already a surging oil market
this morning off the back of that social media post.
What's the impact as well, Jumana of this kind of
surprise announcement from the United Arab Emirates that it's going
to be leaving OPEK and OPEC plus at the end
of the week.
Yeah, that was a really shocking announcement. I would say
that came through yesterday, but not necessarily surprising because there
had been a lot of friction in the backgrounds between
the UAE and other producers, namely the de facto head
of the OPEK, that is, the Kingdom of Saudi Arabia,
and I would say from their perspective, and I got
the I had the opportunity to speak to the UAE
Energy Minister and he said this was a careful decision
that was taken, but that right now they decided that
the time was right because it would not have hugely
impacted the market.
The decision would not hugely have.
Impacted the market because the market was under supplied, and
so clearly this is something that they had been sitting
on for a while.
Now.
They've been considering how to withdraw from OPEK, but to
do it in a way that wasn't going to cause
a significant amount of disruption, and that the crux of
the issue here. As UEE have been pushing for extra production,
they've been expanding their capacity more than any other OPEC member,
but they've been constrained by the group decision making, collective
decision making coming through from OPEK. A year ago, we
were talking about this market being hugely oversupplied to the
tune of one to two million barrels a day. Now
we're in an environment where ten to twelve million barrels
a day from a Persian Gulf oil is being taken
off the market. So it was more that they sensed
a window of opportunity that arose from the Iran War
as opposed to reacting to the Iran War.
This is Bloomberry Daybreak, your morning podcast on the stories
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