President Trump Weighs Iran Intervention; Fed Meeting Look Ahead

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 developments in the Middle East.
Bloomberg News is reporting the President Donald Trump met his
national security team in the White House Situation Room for
more than an hour yesterday, discussing the escalating conflict between
Israel and Iran. The President followed that up with a
call to Israel's Prime Minister Benjamin Nettan Yahoo. Before the meeting,
the President demanded Iran's unconditional surrender. In a post on
social media, Bloomberg's Jumani Versechi says the president also warned
of a possible strike against the country's supreme leader, Iatolahamini.
It seems at this point that Trump's advisors are still
divided on the move. Everyone has been trying to guess
what the President's next move is going to be. But
you can sort of piece together that he's turning more
hawkish because of the posts that he put out over night,
calling the Ayatalla an easy target, using the plural we,
saying we know where the Ayatola is hiding. We have
complete domination of the skies and of Iranian air at
this point in time, and so that suggests that he
does view that the US are somewhat involved already, but
whether they want to take it to the next level,
of course, is going to be the major decision.
Bloomberg's Jomanivarsaiche says US military assets have already started deploying
to the region, including tanker aircraft.
Meanwhile, Nathan the New York Times is reporting US commanders
have put troops on high alert throughout the Middle East,
with Iran preparing its missiles for possible retaliatory strikes on
US military interests. Bloomber's Paul Wallace says, although a strike
on Iran is on the table, President Trump may also
consider diplomatic options.
One interesting meeting to watch is that Trump is going
to meet the head of the Pakistani military today in Washington.
A little and clear exactly what this is about, but Pakistan,
in some way or another is acting as a mediator
for run and it's possible that Trump has decided to
here out what Pakistan is saying and what it will
tell the US about Iran's intention.
Bloomer's Paul Wallace erports. The US Embassy in Jerusalem has
also been closed for the next three days.
And in response to all these developments, Karen iran Supreme leader,
posted on social media his country will show no mercy
toward Israel and in Iranian Foreign Ministry spokes says quote,
any American intervention would be a recipe for an all
out war in the region.
Well, the latest strikes from both sides have ren crew
to trading around seventy five dollars a barrel. Nathan and
Bloomberg's John Tucker joins us with the latest John, good morning, Karen.
Both Brent, which is the international benchmark in West Texas
Intermediate closed yesterday at the highest level in almost five months.
For Ellen Lee at Cronswai Capital, it's just one more
element of risk for investors.
Oil prices do really spike, it will actually pressure inflation.
So so far things look okay, but you know a
lot of uncertainty out there.
It RAN's crude exporting infrastructure that's been spared so far,
and most of the fallout has been confined to shipping.
The Middle East produces about a third of the world's
oil and a wider conflict with drying prices even higher now.
The biggest concern for the oil market right now centers
on the Strait of Hormuz, although there are no signs
that tay Ran is seeking to the shop shipping through
the narrow waterway at the entrance to the Persian Gulf.
About a fifth of the world's crude output passes through
the strait, including from Saudi Arabia. The meantime, industry figures
show that US crewed supplies they fell by more than
ten million barrels last week. That would be the biggest
decline since last summer. In New York, I'm John Tucker,
Bloomberg Radio.
All right, John, thank you. Leaders of the G seven
summit in Canada closely followed developments in the Middle East.
After President Trump's early departure from the gathering, the focus
turned to Ukraine and meetings with President Vladimir Zelenski. Bloomberg's
David Gera joins at the details from Banff.
Ukraine's President Vladimir Zelenski met with Prime Minister Mark Karney
at the start of the day, and Canada announced more
financial support for Ukraine in its fight with Russia. Also
announced new sanctions on Russia as well. There was cajoling
at the dinner among these leaders, and they were able
to convince President Trump to support a statement on the
Middle East. They were unsuccessful, however, in getting him to
sign on to a statement on Ukraine. Friedrich March, the
Chancellor of Germany, was cautiously optimistic, as he put it,
the Trump will come around and be in favor of
applying more sanctions to Russia. David Gura Bloomberg News.
All right, David, thank you. And in his closing a
news conference, Canadian Prime Minister Mark Harney was asked about
President Trump's comments earlier in the week where he suggested
that Russian President Vladimir Putin was offended when he was
thrown out of what was formally the G eight.
With respect to personally, it was personally offensive, as to
put it mildly, to the citizens of Ukraine and the
inhabitants of Crimea when Russia invaded in twenty fourteen.
Canadian Prime Minister Mark Kearney also announced billions in eight
for Ukraine and sanctions on Russia.
And back in Washington, Karen the Supreme Court is being
asked to weigh in on President Trump's economic agenda. Two
family owned toy companies are asking the High Court to
consider striking down many of the President's tariffs. The companies
argue that the massive impact on businesses and consumers requires
immediate intervention. Rather than waiting for a federal appeals court
to rule, they're seeking a definitive Supreme Court ruling by
the end of this year.
Turning now to the markets and the Fed and NATHAN,
where officials are widely expected to leave interest rates unchanged
for a fourth straight meeting today. Bloomber's Michael McKee is
a preview of the June decision.
The Fed may have to put an expiration date on
their decisions Today. With policymakers already conceding no change in
interest rates, the focus will be on their latest economic
projections and the dot plot guide to what those projections
mean for future policy moves. Investors think we'll see a
more hawkish tilt, with unemployment and inflation forecasts rising. Both
would suggest slower growth. The central bankers are also expected
to shave their outlooks for rate cuts this year to
one from two, but with tariffs and tax cuts still
to be determined, whatever they predict might have to be
revised fairly soon. Michael mcke Bloomberg Radio.
All right, Michael, thank you. Stay with Bloomberg for full
coverage of the fen's decision and j Powell's news conference
as on a special edition of Bloomberg Surveillance they're getting
at one thirty pm Wall Street time on Bloomberg Radio,
Bloomberg Television, and the Bloomberg Podcast page on YouTube.
And ahead of that, Karen, The FED and other bank
regulators are planning to reduce a key capital buffer known
as the Enhanced Supplementary Leverage ratio by up to one
and a half percentage points for the biggest lenders. The
revisions would bolster bank's roles as intermediaries in the market,
but some experts argue the ratio might not encourage banks
to buy more treasuries and could make the financial system
more fragile.
Well in New York, Nathan City Controller Brad Lander was
arrested outside of immigration court in Lower Manhattan yesterday. Lander
is running in next week's Democratic primary for mayor. He
says he locked arms with an undocumented immigrant and an
apparent effort to shield the person from detention.
All I tried to do was just hold at Gardo's
arm and ask the Ice agents, do you have a warrant?
And they would not show me the warrant, and I said,
I'd let go of his arm as soon as they
showed it to me. And they did not show it
to me. And you saw what happened. I will say
they treated me just fine after that.
Sitting alongside New York City Controller and mayoral candidate Brad
Lander was New York Governor Kathy Hokeel, who said Lander's
arrest marked a sorry day for New York. In the
race for New York City mayor, Mike Bloomberg, the founder
and majority owner of Bloomberg LP. He has endorsed former
New York Governor Andrew Cuomo. Time Now for a look
at some of the other stories making news in New
York and around the world, and front that we're joined
by Bloomberg's Michael Barr.
Michael, Good morning, Good morning Karen. In the wake of
the Minnesota shootings, lawmakers in DC were given in emergency briefing.
Democratic Senator Amy Kloboodshar of Minnesota spoke on the Senate
floor remembering state lawmaker Melissa Hortman, who was killed along
with her husband.
They were great neighbors, wonderful friends and great parents to
their beloved children, Sophie and Colin.
Reaction continues from top Democrats after President Trump said calling
Minnesota Governor Tim Walls following Saturday's deadly shootings would be
a quote waste of time. State Attorney General Keith Ellison
was one of the lawmakers on the suspect's hit list.
He fundamentally doesn't understand what it means to be the
president of the United States.
Hey g Keith Ellison me and while the bipartisan group
of lawmakers called out Utah Senator Mike Lee over his
social media post appearing to mock the assassination, Lee writing
this is what happens when Marxists don't get their way
and saying nightmare on Wall Street, a reference to state's
governor Tim Walls. Leah since deleted the post. In Virginia,
former state Delegate Jay Jones one tuesdays closely watched Democratic
state primary for attorney general. Jones will face Republican Attorney
General Jason Miras in the November general election. A dangerous
tropical storm is turning near the southern Mexico coastline in
the Pacific Bloomberg and neederologist Craig Allen reports Eric is
expected to get stronger.
The tropical Pacific remains very active, and this storm named
Eric is going to rapidly intensify today and become a
hurricane with possible wins of one hundred miles per hour
or stronger. There will also be life threatening flash flooding
as well as mud slides possible in the hillier terrain,
dangerous storm surge and rip currents along coastline. Eric is
moving northwest towards the southern Mexico coastline and could make
landfall tonight or early Thursday.
Bloomberg Meetia Religious Craig Allen, And as we've been reporting,
New York City Controller and Democratic mayoral candidate Brad Lander
was arrested by masked ICE agents at Federal Immigration Court
in Lower Manhattan and Foley Square. Protesters gathered in Manhattan
after Lander's arrest. New York Governor Kathy Oakles says charges
filed against Lander have been dropped. 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, brought to you by Flushing Bank,
and here's Dan Schwartzman.
Dan, Good morning, Good morning, Karadonna than Flauda. Panthers repeating
as Stanley Cup champions, defeating the Oilers in Game six,
five to one behind four Sam Reinhart goals to take
this year. These four games to two, Panthers are the
third NHL team to win back to back championships this century,
following the Tampa Bay Lightnings to accomplished the beat in
twenty twenty and twenty twenty one. Sam Bennett taken on
the CONSMKE Trophies Playoff MVP after scoring fifteen postseason goals.
Bennett on what it took to beat the Oilers.
Guys were We're willing to do whatever it takes to
shut them down, and some guys played some big minutes
shutting down some I mean to the best players in
the world. And that's that's not an easy job by
any means.
So Major League Baseball Action Yankees loser fifth straight while
being shut out for the third traight game, falling to
the Angels and the Bronx four nothing. Yankees scoreless streak
extending to twenty nine innings with the Bombers last scoring
Saturday against the Red Sox. Elsewhere, Mets losing ten innings
to the Braves five to four, Oriols defeat the race
five to one. National's fall to the lowly Rockies ten
to six. Cubs get pass the Brewers five to three,
of the Dodgers outlast to Padres eight to six.
Matts.
Will be without starter Tyler mc you for at least
a month after placing the right hander on the fifteen
day injured list with his brain right elbow. Miguel is
five and five in the season and fourteen starts with
a three point ninety five ERA.
Oklahomassippi Thunder looking to finish off the.
Indiana Basers Thursday night in Indianapolis to secure the franchise's
first NBA championship since moving to OKC. That's your Bloomberg
Sports Update. I'm Dan Schwarzman, Karen and Nathan.
Coast to Coast on Bloomberg Radio nationwide on Sirius XM,
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Bloomberg Business app. This is Bloomberg Daybreak.
Good morning. I'm Nathan Hager. President Trump is weighing his options. Now,
six days into the fighting between Israel and Iran, his
calls for unconditional surrender from the Iranians are fueling speculation
that the US could become more directly involved. Wesley Clark
is the former NATO Supreme Allied Commander Europe.
I think you're going to end up with a regime
change out of this, and the question is who's going
to take charge and how is it going to work.
You sure didn't do a very good job in Iraq
in two thousand and three.
Retired General Wesley Clark speaking of Bloomberg this morning. We're
joined by Bloomberg News Senior editor Bill Ferries and Bill,
that really is one of the questions surrounding this as
President Trump considers what to do. Is this about regime
change or is it about Israel's goal of decimating Iran's
nuclear and ballistic missile programs.
Good morning, Good morning, Thanks for having me. I mean,
it's very hard to separate those two questions you just posed.
They made.
They're very much wrapped around each other. I mean, Israel
has said its goal here is to eliminate the threat,
to eliminate Iran's nuclear program. For the long term, and
the US President Donald Trump has repeatedly said that Iran
cannot be allowed to have a nuclear weapon. Whether that's
a possible goal without regime change is really doubtful. At
this point, we're in the sixth day of these two countries,
Iran and Israel, firing back and forth at each other,
and the rhetoric, as you mentioned, is becoming I think
even more heated. A lot of questions about where the
US stands and what Donald Trump will eventually do. But
he did have that meeting in the situation room with
his advisors, and he did have a call with Netanyahu afterwards,
and posting that statement calling for the unconditional surrender of
Iran and saying that the US could even knew, saying
that the US knew the whereabouts of Ayatola Kamani, and
that he's saying he is quote an easy target, but
we are not going to take him out, at least
not for now. So very tense situation and Iran coming
back and warning that any US action in Israel Israel's
offensive risks putting American assets at risk and would result
in all out war.
And coming out of this meeting, Bill you have to
wonder who's got the president's here, because this has to
be pitting some of the you know, defense hawks in
the GOP with the MAGA wing of President Trump's party.
What absolutely is it is really ripping the Trump movement
in half right now. I mean you have influential outsiders
like Tucker Carlson really pushing back on the idea that
the US should be involved, saying, you know, this is
Israel's basically saying it's a war of choice by Israel.
And then you have people like Senator Lindsey Graham from
South Carolina who have long been been hawks on Iran
and saying that, you know, this is kind of the opportunity.
This is the time i Ron's defensive systems are degraded,
a lot of its leadership, military leadership has been taken out.
Now is the time for the US to get involved
and help use its weaponry to help eliminate this nuclear program.
This is Bloombergy Daybreak, your morning podcast on the stories
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