US Launches Iran Strikes For Second Day; Platner Ends Senate Bid

Bloomberg Audio Studios, Podcasts, Radio News.
Good morning, I'm Karen Moscow and I'm Alexis christopherus. Here
are the stories we're following today.
Alexis who began with the latest developments in the Middle East,
where fighting continues. The US military struck Iran for a
second straight day, and Tron retaliated against American allies and
the Persian Gulf. President Trump spoke to reporters on Air
Force One.
We just said him very hard, and I say, we
hit up twenty to one. Every time they hit us,
We're gonna hit up twenty and we did it last night.
They did a little.
Something today, but it was really retribution for last night.
They hit actually three votes, not two, and we hit back.
Much on US Central Commands as it targeted arounds, air
defense systems, coastal surveillance assets, and missile and drone storage.
And the renewed fighting is raising fears that the tit
for tat attacks may do rail talks on a permanent
peace deal. Both the US and Iran are accusing each
other of violating a memorandum of understanding that established a
short term truce. We get more from Bloomberg Middle East
reporter Patrick Sykes.
The moment, it's more strikes than talks. Remember, we have
a kind of suspension of the talks at the moment
while the funeral proceedings for the former Supreme Leader Alicomedy
are going on, that is to conclude today with his
burial in Mashad. In the meantime, yeah, we have these strikes.
The strategy from the US side seems to be to
use them to let's say, pressure Iran into compromising. I
think in particular on the Strait of Hormu's front. Iran
is still insisting that it have some kind of sovereignty
over the future state of the Straight of Hormos, control
over the passage of ships within it. That's something that
of course the US and many other countries are still
very much resisting.
Bloomberg's Patrick Syke says another issue yet to be resolved
is the release of billions of dollars of frozen funds
to the Islamic Republic.
Well Alexa's The potential unraveling of a fragile truce between
the Iran and the US has renewed anxiety over fuel
prices traffic through the Straight up were removes came to
a near standstillm Chris Kennedy covers energy markets for Bloomberg.
Our base case is still that we are in that
sort of escalation and then the escalation period. But of
course these are pretty significant attacks. Two nights in a row.
Iran is taking hits to some of their missile stockpiles,
et cetera. And I think there is a risk that
we will see some retaliation from Iran that could do
some more lasting damage to export infrastructure, to oil production
and gas production infrastructure in the Gulf, and that would
of course have much longer term impacts on energy security.
And Bloomberg Energy reporter Chris Kennedy. Right now, oil is
falling after gaining more than six percent the past two sessions.
Checking West Texas Intermediate, it's down sixtensive percentage seventy three
dollars eleven cents a barrel Brent at seventy seven dollars
fifty five cents.
And Karen Major political news this morning here in the US,
Graham Platner suspended his Senate campaign in Maine. Bloomberg's John
Tucker joins us now with more. Good morning, John, and
alecsu Is.
The move by Platner follows sexual assault allegations. The forty
one year old Oyster farmer and military veteran posted a
video on social media.
I know that some will think it's an admission of guilt,
and it most certainly is not.
We're not doing it because of the allegations.
We're doing it because of the structures that are being
taken away from us by those in power.
But following the allegations, support from fellow Democrats collapsed. A
crucial race for the party is now in turmoil. The
main Democratic Party is going to hold a nominating convention
to choose a new nominee. The process to replace a
Platner needs to play out before a July twenty seventh deadline.
The race to try and defeat Republican Senator Susan Collins
is considered a must win seat and they find to
take back the chamber. If Democrats lose main their path
to the majority is far more difficult. I'm John Tucker, Bloomberg.
Radio, Right, John, thank you. We turned to the markets now.
Future is rebounding after yesterday's losses on Wall Street. The
S and P, which was down more than one percent yesterday,
closed down just three tenths of a percent. The now
dropped five hundred and seventy seven points, or more than
one percent. The NASDAK closed the session up two tenths
of up percent. Right now, Nasdaq futures are leading the
way higher. They are up six tenths of percent.
And on the economic front, In minutes released from the
Federal Reserves June meeting, the first under chair Kevin Warsh,
a few officials said there was a case for raising
interest rates. They ultimately supported the decision to leave rates
on hold. We get more on the minutes from Tyler
Kendall in Washington.
The minutes tell us that the discussion really centered around
inflation risks and restoring price stability. Writing in part quote,
participants judged that the risks to the inflation out or
outlook were tilted to the upside. That they observed that
both core and total inflation had moved higher. Generally attributed
to the increases to the lingering effects of tariffs, supply
chain disruptions, and the related to the closure of the
Strait of.
Removes Bloomberg Tyler Kendall's as policymakers will next look to
the release of June consumer price data on Tuesday.
In company news, Alexis traders are looking forward to the
US debut of sk Heinex, which is expected on Friday.
Right now, demand for the South Korean based memory chip
maker and the US is strong. The listing is more
than seven times oversubscribed and is currently on track with
the largest US debut for a foreign company.
And in Europe, shares of Astra Zeneca are plunging nine percent.
Its gene silencer drug fail to help prevent heart problems
and patients with a rare and potentially fatal disease of
the organ. Astra is looking to establish itself in the
disease area, where the market for therapies is expected to
be worth eighteen billion dollars by twenty thirty.
If you collect luxury watches Alexis now may be a
good time to get it deal on a used Rolex
Snake Grona Oysterflex watch, especially if you can find it
in yellow gold. The price of that model has dropped
four percent since April, according to the Bloomberg Subdial indexmemmoring
a slump in the precious metal that began with the
war in Iran. The value of the top ten watches
has risen by just over two percent since April, suggesting
that iconic brands and historic models are driving the market all.
Right, well, well, watches may be at a discount, Karen.
Wealthier Americans are cutting back on back to school spending.
According to a Deloitte survey of families in late May,
a majority of those making more than two hundred thousand
dollars a year say they plan to spend twenty percent
less than they did in twenty twenty five. On the
other end of the spectrum, families earning less than one
hundred thousand dollars a year expect to spend more, mostly
due to higher prices. Time now for a look at
some of the other stories making news in New York
and around the world. For that, we are joined by
Bloomberg's Michael Barr. Good Morning, Michael, Good Morning.
Excess, the developer behind the Midtown Manhattan tower that was
evacuated Tuesday over structural concerns, says it has a plan
to fix the issue, including reconstructing fifteen floors that were
added to the original building as part of its conversion
into apartments. Metro Loft CEO Nathan Berman says the issue
was caused by two columns that weren't sufficiently reinforced, leading
them to bend and causing some of the floors above
to sag. New York Mayor zoram Mmdani is promising a
full investigation.
As soon as we answer the emergency questions around safety
in this moment.
We are going to be conducting.
A full investigation as to how we got to this point.
Officials say the building is now stable. A federal judge
as rule that New York writer E. Gene Carroll can
collect five point eight million dollars held in escrow since
a jury found that President Trump sexually abused and defamed her.
The US Supreme Court recently upheld the twenty twenty three
civil verdict against President Trump in the case, allowing the
judge to release the money. President Trump's lawyers appealed, but
it was denied in an emergency order to block the
payment from being made. A jury found President Trump sexually
abused Carol in nineteen ninety six and then defamed her.
In twenty twenty two, a federal judge fined former Wisconsin
judge Hannah Dugan five thousand dollars and cited her, but
spared the sixty seven year old prison time for helping
a Mexican defendant out of her courtroom to evade ice agents.
Dugan's lawyer Jason Lusak, he certainly made the right call
and not sensu sing Judge Dugan im prison She's lost
so much throughout this process. Dugan stepped down from the
Milwaukee County Circuit judge ship she had held for nine
years amid threats of impeachment from Republican state lawmakers. Global
News twenty four hours a day and whenever you want
it with Bloomberg News. Now him Michael Barran, This is.
Bloomberg Alexis all right, Thanks Michael, Thanks Michael.
Time now for our Bloomberg Sports Update, and for that
we bring in John Stafshauer.
Thanks Darren. They didn't play in the World Cup yesterday.
They're back today with the start of the quarterfinals, a
game in Foxboro between France and Morocco. Also today the
women's semifinals at Wimbledon. Coco Golf has won four straight
three set matches. She's got a match with Carolina on Jovah.
Linda Maskova will take on Marta Kostiek. The Yankee slump continues.
They got shut out at Tampa Bay, lost three to nothing,
but the Yanks have lost eleven or last thirteen and
are now five games behind the Rays. That's to Bloomberg
Sports Update.
Stay with us. More from Bloomberg Daybreak coming up after.
This Coast to coast on Bloomberg Radio, nationwide on Sirius Exam,
and around the world on Bloomberg dot Com and the
Bloomberg Business opp This is Bloomberg Daybreak.
The US military struck iron for a second day in Toron,
retaliated against American allies in the Persian Gulf, raising fears
that the Titford tad attacks may derail talks on a
permanent peace deal. Speaking on Air Force One on the
way home from the NATO summit in Turkey, the President
said he's not sure if this means the US and
Iran will return to a full scale war.
We have any ways we could win, but we've already
won militarily. Take e very little, never little left. And
they want to make a deal so badly. They called
a little while ago. They want to make it deal
so badly.
And we're joined now by Abir abu Omar, a Bloomberg
Middle East reporter. Abir, thanks for being here. Get us
up to date. Please, what's the latest on the fighting
with Iran.
Yeah, good morning, Karen. Look what we're seeing right now
is a muted reaction.
Really.
The retaliation by Iran has been hitting countries in the
GCC that includes Bahinan and kuwaitin earlier saying that intercepted
missiles out of Iran. Kuwait saying similar things as well
about attacks that have happened overnight into the early hours
of the morning that have affected some infrastructure there. Iran
also saying that the attacks by the United States on
the country have been have killed over a dozen people,
injured some seventy eight people or so, and then that
they affected some bridges in the eastern side of the country. Now,
the reason I say these are muted reactions is because
this is not dissimilar from actions that we've seen over
the past couple of months or so, with Iron starting
by attacking ships in the Strait of Hermus and then
the US retaliating. Now, what we know from President Trump
is that he said yesterday at the NATO summit in Ankara, Turkey,
is that according to him, or as far as he's concerned,
ceasefire talks are over. But then in his own narrative
and his own remarks. He said, but the negotiators, namely
Jared Kushner and Steve Woodcoff, can go on and continue
those talks, and so we're seeing the back and forth
in his own narrative, in his own remarks, and this
all suggests that we might see a return to an
escalation that certainly feels like it's been the case over
the past couple of days. But neither the market nor
a lot of people on the ground seem to think
that we're gonna go back to a state of kinetic
warfare that we saw back in March, where the entire
region is dragged into it. And that is why you're
seeing Brent crude and y Crude is well reversing gains
earlier in the session. So escalation foreshore. This is the
most serious escalation since the MU was reached in June.
But we keep an eye out on the situation and
the standstill of the movement in the strait of her moves.
That's also another very important element here, straight of her
moves and the assertion of dominance of Iran on the waterway.
We keep an eye out on that and whether those
shipments and ship owners return to making their movement through
the waterway.
Yeah, because this latest fighting has cut traffic and the
Strait of War moves. As you said, it has pretty
much come to us standstill for the moment, at least today.
So it sounds like ships are no longer getting through.
So if the fighting well continues to escalate, that will
certainly upset President and I would imagine it would continue
to fuel any kind of retaliations.
Absolutely, and I mean this is exactly what Iran has
woken up to, right the fact that they have this
much leverage over the Strait of Her Moves. Look, perhaps
they already had known that they could have this much leverage,
but the fact that they're using it just shows you
that in the Middle East right now, it looks like
the paradigm of how things are going to be done,
especially in the Strait of Her Moves, may change forever.
This might be the new reality, not just Her Mooves
telling ships and ship not just Iran excuse me, telling
ships and ship owners to stick to roots that it
had laid out, but also possibly once the negotiation period
is over, Iran says and is adamant on the fact
that it will start charging tolls and fees to those
tankers that are making their way through the strait of
her moves. And not only with this upset the US
and President Trump, but also countries in the GCC that
depend on the strait of her moves, and this is
why you're seeing the UAE Saudi Arabia doubling down on
other roots. For the time being, we're still seeing Brent
below the eighty dollars per baron mark. So that's, you know,
possibly good news for President Trump and his coming term
elections in November, but still it's it's definitely it does
feel like there's a new reality at playing here and
that is something that Iron is aware of.
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