Iran Vows Intensified Response; Senate Rejects War Powers Measure

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.
The war in the Middle East is now into a
sixth day. Israel is carrying out new waves of attacks
on Tehran's military and intelligence assets, along with strikes on
Hesbola targets in Lebanon. President Trump says the US is
doing very well.
Somebody said, on a scale of ten, where would you're ready,
I said about a fifteen. And We're going to continue
to do what we have the greatest military in the
world by far.
President Trump spoke from the White House, so we get
more from Bloomberg Middle East anchor Jumana Bursecci in Dubai.
White House Press Sector. You, Karen, I love it. Went
on to say that they're moving to have complete dominance
of the skies, and earlier on I actually conducted an
interview with one of the advisors to the Israeli Prime
Minister and he said that from their perspective, both IS
and US operations have already surpassed in the first five
days of this war what they thought they could achieve.
This is his words. Obviously, that's how he's describing it.
The US also saying the Central Command that they've hit
over two thousand targets in Iran over the first five
days of the operations.
Bloomberg's Jumani Burssecci reports Iran is promising to ramp up
retaliatory attacks. About a dozen nations are involved with Tehran's
striking US bases and embassies across the Middle East. Turkey
came under fire as well yesterday, the first time a
NATO members been targeted, and the US submarine sank in
Iranian warship and international waters off Sri Lanka in the
first such attacks since World War II. Iran is vowing
to avenge that strike well.
On Capitol Hill, Nathan the Shunate has cleared the way
for President Trump to keep the war going. A Democratic
led resolution to stop for their strike so was blocked
by a vote of forty seven to fifty three. Republican
Lindsay Graham says the war is justified.
President Trump, after a sincere effort and to bring this
conflict to a peaceful conclusion, concluded that to continue to
allow this regime to move forward would put America at
unacceptable risk, and he was right.
But Democrat Chris Murphy says Americans are already paying a cost.
Oil prices up by nine percent, gasoline prices their largest
one day increase in twenty years, natural gas prices up
forty five percent. The region is in chaos. American consumers
are paying the price, and for what. We still don't
even know the reason for this war.
Senators Chris Murphy and Lindsey Graham spoke on the Senate
Flora ahead of the vote. The House plans to vote
in a war powers resolution today. Speaker Mike Johnson says
he's confident it will fail there as well. A CNN
pool taken the weekend the war began found fifty nine
percent of Americans disapprove the strikes on Iran.
The Karen Former Secretary of State Antony Blank says real
change in Iran will require a sustained military focus that
could wear down US weapons stockpiles and leave it vulnerable
to attacks from other adversaries. Lincoln was the top diplomat
in the Joe Biden administration. He's questioning whether this White
House is ready for the consequences of a drawn out war.
B Lincoln spoke with Bloomberg's David Gurup on the latest
edition of the Bloomberg Big Take podcast.
What I'm worried about. One of the things I'm worried about,
and this gets to the second and third order consequences,
is we so deplete our arsenal and it takes a
long time to rebuild it that that puts us in
a disadvantageous position when it comes to say a China
or a Russia. All of those things need to be
factored in. And again it's one of the reasons why
if you're going to undertake something like this, you've got
to make sure that you've you've factored all of that in.
And you can catch David Gurrow's full conversation with former
Secretary of State Blincoln on The Big Take wherever you
get your podcasts.
Well, Nathan, we are seeing oil on the rise once
again this morning. West Texas Intermediate is up two point
two percent at seventy six dollars twenty four sense of
Baryl Brent is up one point seven percent eighty two
dollars seventy six cents. Bloomberg Middle East News director Will
Kennedy believes President Trump is closely monitoring the energy market.
I do think the old price is an important calculation
for him, and although the price has been significant, it's
worth bearing in mind that it's not out of control.
That price is in the low eighties and not in
beyond where they've been in recent years. Prices went well
above one hundred dollars at the start of the Russia
Ukraine War, so it may be in Washington's calculation that
these oil prices are manageable.
Bloomberg's Will Kennedy on Iranian television this morning, a military
official claimed Iran has not closed the Strait of Hormuz now.
The war continues to have a major impact on the
airline industry car and the number of canceled flights to
Middle East tubs has now surpassed twenty three thousand and
thousands of passengers are stranded in the Gulf region, with
more than half of all scheduled flights to or from
the Middle East canceled. We get the latest from Bloomberg
Aviation and Transport reporter Danny Lee.
Priority has really been given to people to get out
of the region, and we have seen recent days the
lucks of Emerson and Etty had elands starting receiving some
flights to get people out, but clearly for now as
a pretty broad disruption overall.
It's Bloomberg's Danny Lee and the State Department says seventeen
five hundred Americans have safely fled the region. It's urging
others to register via its website, Nathan.
Amazon also being impacted by the war in the Middle East.
Your own strikes have damaged three facilities operated by Amazon
in the United Arab Amoris and Bahrain, and Israel and
the US have reportedly hit at least two data centers
in Tehran, one of them connected to the Islamic Revolutionary
Guard Corps.
Karen Goldman Sachs CEO David Solomon says he's surprised so
far by the reaction to the Iran attacks in the markets,
but in an interview with Bloomberg, he says he does
not see complacency.
I think there's a lot, a lot of uncertainty around
the direction of the conflict, how it will be resolved.
You know what the off ramps are, and you know,
I think it's fair to say when you look at markets,
market reactions have been relatively benign, and I certainly could
have seen over the last couple of days you know
a little bit more volatility, but I don't think people
are being complacent. I think that market participants are looking
and trying to say, you know, how is this going
to play out? What's the end game?
To catch the full interview with Goldman Sachs CEO David
Solomon on Bloomberg's new video experience on the Bloomberg Business
app Nathan Fed.
Governor Stephen Myron is still pushing for interest rate because
even with the war in Iran, and we spoke with
Myrain yesterday, I think.
It's a moment to continue acting. We have I have policy,
I have projections for unemployment. I have projections for labor markets,
so to my for inflation, so to my colleagues, and
I believe it's appropriate to continue acting in accordance with
those projections until you get evidence that you have to
change your projections. And thus far, the evidence from event
from events over the week and haven't led me to
change any of my forecast for the lad market for
inflation over the medium terms. So it's too early to
respond to them.
Thank Governor Stephen Myron says it's too soon to say
how the war will affect the US economy and other
FED officials have said the risk of higher oil prices
is clouding their outlook.
Turning to the equity markets, Karen futures have turned a
touch lower this morning, following yesterday's gains on Wall Street.
Shares of Broadcommerce still in the green, up seven percent
in early trading. The company expects Ai Chip sales to
top one hundred billion dollars next year. Broadcom also delivered
a better than estimated quarterly outlook and announced a stock
buyback plan worth as much as ten billion dollars.
Well in Asia, Nathan China has set as low as
growth target since nineteen ninety one, as policymakers finally appear
to acknowledge the difficulties facing the economy, including deflation, teriff fishs,
and the property sector. And here's Chinese Premier Lee Chiang
speaking through an interpreter in Beijing earlier this morning.
I mean targets forty women this year are US follows
GDP growth four point five to five percent. We striving
were better in practice and.
As hun is Premier Lee Chiang. Hanging over any projection
is a summit between Leader Seson Ping and President Trump,
which could determine the level of tariffs charged on Chinese goods.
And this programming note, Karen, as we've just seen this
past weekend markets to way clothes on Friday, but the
world doesn't. That's why we're bringing you a new live
radio and TV show, Bloomberg This Weekend, is looking beyond
the daily headlines to the bigger themes striving politics, business
and culture. Join David Gera, Christina Raffini, and Lisa Matteo
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.
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 Blomberg's Michael Barr Michael,
Good Morning.
Good Morning, Karen. The House Overside Committee as voted to
subpoena Attorney General Pam Bondy as part of its investigation
into convicted sex offender Jeffrey Epstein. Commerce Secretary Howard Lutnik
has also agreed to answer questions about his past ties
to Epstein, including emails showing a visit to Epstein's private
island years after Lutnik says he cut off contact. Democratic
Congressman Stephen Lynch of Massachusetts is a senior member of
the committee.
With Pam Bondy, it's a different situation. She has withheld
meaningful and important documents from Congress. She scrubbed the information
that she gave to Congress from all references to Donald Trump.
Lynch says that Trump administration had six million documents, they
gave us three million. Minnesota Governor Tim Walls and State
Attorney General Keith Ellison appeared before the House Oversight Committee
to testify about alleged fraud in state programs. The committee
accused Walls and Ellison of knowing about alleged fraud for
years and failing to act on it. Committee chair James
Comer accused the leaders of ignoring warnings from more than
thirty whistleblowers.
What we've uncovered in Minnesota is not a paperwork error
or a few bad actors slipping through the cracks. It
is sustained failure of leadership.
Walls defended their leadership, saying the allegations are being used
as rationale for President Trump's deadly immigration raids in the state.
In Minnesota, if you do fraud public programs, if you
steal taxpayer money, we'll find you, We'll prosecute you, we'll
convict you, and we'll throw you in jail.
Ellison says Operation Metro Surge did nothing to address fraud
in our state, harmed our economy and scarred our people.
US and Canadian military aircraft were sent to the Skies
in response to an ultimately unfounded security threat on a
Scandinavian Airlines flight bound for Newark Airport. The plane landed safely.
Global News twenty four hours a day and whenever you
want it with Bloomberg News Now Michael Barr, and this
is Bloomberg Hererac. Thanks Michael.
A time now for our Bloomberg Sports update, and for
that you bring in John Stash Houurd.
And Karen Lou Holtzer passed away at the age of
eighty nine. A member of the College Football Hall of Fame,
he took over at Notre Dame of the mid nineteen eighty.
In his third season, he coached the Irish to the
national championship. The Patriots have released wide receiver Stefon Diggs
after just one season with them. He played well, but
this saves them sixteen million of the salary cap Diggs,
who comes a free agent. Ken See Chiefs have traded
cornerback Trent mcduffy to the La Rams. That Chiefs get
the Rams first round pick and three other picks. That's
your Bloomberg Sports Update.
Stay with us. More from Bloomberg day Break coming up
after this.
Coast to coast on Bloomberg Radio, nationwide on Serious Exam
and around the world on Bloomberg Dot and the Bloomberg
Business app. This is Bloomberg Daybreak.
Good morning on Nathan Hager. On day six of the
US Israeli war with Iran, there is little sign of
let up on either side, and President Trump continues to
make the case that he was justified in going after Tehran.
They're attacking their neighbors. They're attacking there in some cases
allies or that's so long ago allies, And you know,
it's really a nation that was out of control.
It was President Trump at the White House. We're joined
now by Bloomberg News Middle East Breaking News editor Patrick Sikes. Patrick,
thanks for coming back on with us. If you could
get us updated on the latest that's been happening in
the region. Good morning morning.
Yeah, I think pertinent said Trump comments there, just you know,
since yesterday we've seen the first incidents both on Turkish soil,
with a ballistic projectile intercepted of Turkey yesterday and then today,
just a short while ago, the first incident in Azerbaijan
with Derne being a drone falling on Osari territory. So
I think, yeah, again, in just indicating even if perhaps
the overall volume of the volleys of missiles being fired
might be falling from Iran, we're still seeing the conflict
sprawl out in terms of geography.
And we also saw yesterday the first strike by an
US submarine on a surface vessel since World War Two
off India's backyard. What does that tell us about the
potential scope of this conflict?
Patrick, Yeah, absolutely, I mean I think it just shows
that the US is prepared to go far far away
from Iranian shores Iranian territory in pursuit of these objectives
that it's laid out. I think the maritime aspect of
it is also important, because Iran was saying just earlier
today that it will make America regret that particular attack
that incident, and I think that matters because of all
the munitions that Aaron will have around the Persian Gulf
and all the tensions around shipping there the moment. I
think it's going to give Iran an extra incentive to
try and target shipping, perhaps even military shipping in the region.
As the conflict continues. Patrick, you'd seen some headlines across
the Bloomberg terminal of Iran saying it had offered some
deal terms before the conflict began. Tell us more about
that and what to make of it.
Yeah, that paniced the market a bit because it was
sort of recirculated the comments. They were actually made kind
of overnight a few hours ago by a deputy foreign
minister in Iran, but it shows just how on edge
the market is that they were reacting. The idea was
that Iran was willing to give up not its nuclear program,
as some had reported, but the highly enriched stockpile of
uranium that it's built up if it was able to
get something attractive in exchange. I think substantively that wasn't
really new to us. But I think, as I said,
you know, the market reaction just shows how eager people
are for new information and the level of and to
the patient that's out there.
I imagine it resurfaces the question of the ultimate end
goal for the US end Israel. If that kind of
offer of giving up to just enriched geranium wasn't enough,
what could the potential end goal be for the US
at Israel at this point?
Yeah, I think part of the problem is that those goals,
you know, frequently though we see them being laid out,
they tend to vary right day to day, week to week.
Sometimes it's about a nuclear bomb, which of course Iran
says it doesn't have anyway. Sometimes it's about missiles, other
times it's about threats to the region. The current line
that you know, I think was the US saying they
want to remove Iran's ability to project threats is obviously
a little bit more ambiguous than some of the above,
which again I think this leaves a lot more room
for the conflict a spiral and in turn for Iran
to keep ramping up from its side.
In our last thirty seconds, with airline cancelations piling up,
how are Western and citizens getting out at this point?
Yeah, there's still a lot of panic and confusion, I think,
with some mixed guidance from some of the countries in
the West, but still many many people stuck in the Gulf,
coming through the golf or further afield stuck, and I
think some countries have been trying to send aid. Individual
companies will likely be looking at potential evacuation options, but
it's still all, i'd say, rather unclear for the moment.
This is Bloomberg Daybreak, your morning podcast and the stories
making news from Wall Street to Washington and beyond.
Look for us on your podcast feed by six am
Eastern each morning, on Apple, Spotify, or anywhere else you listen.
You can also listen live each morning starting at five
am Wall Street time on Bloomberg eleven three to zero
in New York, Bloomberg in ninety nine to one in Washington,
Bloomberg ninety two nine in Boston, and nationwide on serious
XM Channel one twenty one.
Plus listen coast to coast on the bloom Business app
now with Apple CarPlay and Android Atto interfaces.
And don't forget to subscribe to Bloomberg News Now. It's
the latest news whenever you want it in five minutes
or less. Search Bloomberg News Now on your favorite podcast
platform to stay informed all day long. I'm Karen Moscow.
And I'm Nathan Hager. Join us again tomorrow morning for
all the news you need to start your day right
here on Bloomberg.
Dabray