Iran Attacks US Bases; Oil Jumps as Fighting Erupts

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 escalation in the war between the
US and Iran. The US military says it intercepted a
surprise Iranian ballistic missile attack on its bases in the
Middle East. The US and Saudi Arabia struck back, hitting
tearunback militias in Iraq. That's after the US says Iran
directed thirty drone attacks against its forces over the past
few days. Bloomberg White House correspondent Jeff Mason says, all
this has brought a relative calm in the region to
an end.
President Trump setting a much more positive tone, or at
least a sort of cautious weight and see tone over
the last few days, and that would seem to have
now changed and if passed his prologue. President Trump does
not react well to attacks from Iran, particularly when he
believes that there was some kind of an agreement or
on a pause or on a ceasefire, which there wasn't
necessarily over the last few days, but it did seem
like both sides were at least tacitly agreeing to hold back.
In Bloomberg's Jeff Mason ads, talks between Iran and almand
to get traffic or more of it through the Strait
of Hormus seem to have faltered, and.
Oil Nathan is surging on the latest developments in Iran
rent It is up more than three and a half
percent at eighty seven dollars six cents a bear. All
this after as big as three day decline since April
of twenty twenty. Iran's Islamic Revolutionary GUARDCOREP claims to have
hit and halted its three tankers, without saying where those
strikes took.
Place and Karen.
The escalation follows a meeting between President Trump and Israeli
Prime Minister Benjamin Natanyahu at the White House. Naton Yahoo
called it, quote one of the best meetings that we've had. Still,
the Israeli leader told Fox News he remained skeptical of
any potential deal with Iran.
Skeptical about the deal, and I said openly, but the
only way it would be achieved, As if you're on
understood these various factions.
I think they're not not ideological factions as much as
they differ on the assessment of how tough.
We are, and along with Israeli Prime Minister Benjamin Natanyahu,
President Trump also met with Ukrainian President Vladimir Zelenski. The
White House called both discussions positive and productive.
Nathan.
We also heard from a former Vice President Mike Pence.
He spoke with Bloomberg's Balance of Power about the prospect
for diplomacy with Iran.
Whoever it is that's in charge of Iran on any
given day to finally come to the table and be
willing to accept our conditions which is abandoned and dismantle
layer nuclear weapons program, ballistic missiles, and support for terrorism,
and restore freedom and navigation industry.
Former Vice President Mike Pence also praise the life and
foreign policy legacy of former Senator Lindsay Graham in discussion
with our Joe Matthew and Kaylee Lines on Bloomberg's Balance.
Get the full conversation on our video hub at Bloombergy
dot com and the Bloomberg Business app.
On Capitol Hillcare and legislation that would allow President Trump
to impose more restrictions on major buyers of Russian energy
and Iran has received overwhelming bipartisan support in the Senate.
The bill would extend penalties on Iran and empower the
president to target the top five buyers of Russian crewd
and natural gas with tariffs. Connecticut Democratic Senator Richard Blumenthal
spoke in support of the bill.
This bill says to Baibner, putin your days of war
are number.
You are on the losing side. Better to come to
the table now.
While Connecticut Democrat Richard Blumenthal was supportive, some other Democratic
lawmakers are warning that the legislation could be used by
the President as a legal justification for broad new tariffs.
Well Also happening in the Senate, Nathan Jake Clayton was
confirmed as Director of National Intelligence by a vote of
fifty one to forty seven, replacing interim Director Bill Poulti.
The former top federal prosecuta in Manhattan, will lead DNI,
which has seen staff reductions under Polti. At his confirmation
here in Clayton repeatedly declined to say if Joe Biden
won the twenty twenty election, reising concerns over whether he
would contradict the president in his new position.
And today on Capitol Hill, Karen doctor Anthony Fauci returns.
He's set to appear before the Senate Homeland Security Committee
after Senator Ran Paul released Fauci's pandemic diary.
We get more from Bloomberg Zamy Morris In Washington.
Homeland Security Chairman Rand Paul has publicly clashed with Fauci
over whether Fauci's agency could have funded research that could
produce a pandemic pathogen. This past weekend, The New York
Times reports Senator Paul released Fauci's diary entries in which
Fauci mused about the virus' origins. Paul claims Fauci lied
to Congress about whether the virus leaked from a laboratory.
Fauci has said he is open to the idea of
a lab leak, but he believes the virus was natural
in origin. In Washington, Amy Moore as Bloomberg Radio, Thank You.
We turned to the economy now, and traders are watching
whether the Fed or Reserve will change interest rates in
response to recent inflation data and geopolitical activity. On Bloomberg's
Michael McKee has a preview.
For the first time this year, a FED meeting is live,
which means there is a chance they might change the
nation's benchmark lending rate. Investors see about a forty percent
chance of a rate increase. The argument is inflation has
been above the fed's two percent target for five years,
and the resumption of fighting in Iran is pushing up
energy prices again. Proponents say a hike would build credibility
for new chairman Kevin Walsh and at the same time
lower long term rates. Economists, however, are almost unanimous in
saying it won't happen. They point to the benign CPI
and PPI readings for June and the move lower and
oil prices in the past few days. No matter which
way they vote, Worsh's news conference today will be very
closely watched. Michael McKee, Bloomberg Radio.
All right, Michael, thank you, and stay with Bloomberg for
a full coverage of the decision and share worshs and
news conference on a special edition of Bloomberg Surveillance. The
Fed decides, I said, one thirty pm Wall Street Time
on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business app.
And along with all that, Karen, we get earnings later
today from some of the world's biggest spenders. On artificial intelligence.
But now we get a preview from Bloomberg's John Tucker.
Good morning, John, Good morning Nathan.
Well, after the close of regular trading, we're going to
hear from Meta Platforms and Microsoft.
They open their books.
Just as the selloff and chip makers has left the
Nasdaq one hundred on the brink of a correction, investors
are going to be looking to see how much they're
spending on AI and whether there's any return on that investment.
At the Starn School of Business, Ashwath Dema Doorn doesn't
sound too hopeful.
Maybe maybe these companies have collectively over invested. Doesn't mean
all of them are going to walk away as losers,
but collectively I think that they've overinvested in tens of
billions of dollars.
In April, Microsoft projected one hundred and ninety billion dollars
worth of capex and finance leases for the year of
Microsoft's free cash flow may actually go negative later this year. Meta,
which doesn't have an established cloud business, they're expected to
record capex this year of close to one hundred and
thirty nine billion dollars. Apple on Amazon they report tomorrow,
You New York, I'm John Tucker, Bloomberg Radio.
All right, John, thank you and for those earnings. This afternoon,
Bloomberg Radio is introducing a new feature exclusively for Bloomberg
dot Com subscribers and terminal clients. Participate in our wall
to wall coverage of earnings today at four pm Eastern
buy submitting questions for our analysts and experts to answer
live on air. Subscribers can go to Bloomberg dot com
slash Ask Radio to send in questions, then listen on
Bloomberg Radio and watch on Bloomberg Originals and YouTube at
four pm Eastern.
We're already seeing action in the tech space this morning.
Karen shares in South Korean chip giant sk Heinez have plunged,
despite the company reporting profits rose more than five hundred
and fifty percent compared to last year. Record margins and
plans for thirty one billion dollars of capital spending weren't
enough to meet sky high expectations for one of the
AI industry's lynch pins. Sk led another day of sell
offs in chip stocks in Asia. The Costpy index in
South Korea has now seen one of its most volatile
quarters ever for a major market.
Another AI news Nathan A. Rogue OpenAI agent has breached
a second testing environment, raising fresh questions about the safety
of advanced AI systems. The AI broke into a customer's
isolated testing environment hosted by cloud Computing for a modal,
which says its own platform was not compromised. Last week,
Open Ai revealed the same experimental AI agent it also
hacked developer platform hugging face after escaping a test area.
And finally, in Europe, care and firefighters in Spain and
France eracing to contain wildfires threatening Madrid and Bordeaux before
a fourth heat wave over these last few weeks.
Officials say the spread of these major fire.
Has slowed, but crews are racing to cool burned areas
before conditions deteriorate again. These wildfires are destroying crops and
disrupting transport.
It's 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 Northeast is still dealing with heavy rain and flooding.
Bloomberg Meeting religist Craig Allen has the latest.
Good Morning, traveling and commuting will be hectic and challenging
again today, especially from New York City and suburbs up
into New England. Boston and suburbs will see downpours, But
on the other hand, some good news down towards Washington
as thunderstorm chances diminish. So for today, I'm focusing in
on the area between Trenton, New York City to Hartford
for the greatest threat of flash flooding and possible stream
and river overflows as well.
Bloomberg Media religist Craig Allen. Rescuers in Japan continued the
hunt for survivors in the ruins of a shopping mall
on the southwestern island of Cayushu after a major earthquake
in which thirteen people had been confirmed dead so far.
An explosion rocked a mall shortly after the magnitude seven
point one quake hit. Today. Senator Lindsey Graham will be buried.
Senator Graham's body was transferred back to Columbia, South Carolina yesterday.
Graham was eulogized during a memorial service in Washington. President
Donald Trump, during his remark, said Graham would be remembered
as a Titan of the Senate.
He was a man who gave America the full measure
of his good and mighty heart until that heart itself
just gave out.
Graham died suddenly July eleventh, at the age of seventy
one of a likely aortic tear. New York State is
taking aim at tech companies who use algorithms targeting children
on social media platforms. It's part of the Stop Addictive
Feeds Exploitation for Kids Act. Governor Kathy Oakle says the
kids did not ask for the algorithms.
That are just constantly thrawing their attention away from being
a student or someone who can communicate in person with others.
The human connectivity has been lost in schools.
Governor Helckel, along with State Attorney General Letitia James, say
companies that don't comply face possible lawsuits from the state
and fines. Companies have until January to comply. Global News
twenty four hours a day and whenever you want it
with Bloomberg News Now, Michae Lbarr and this is Bloomberg.
Karen, thanks Michael a time now for our Bloomberg Sports update,
and for that you bring in John Stash.
Hour more details on the car accident that involved forty
nine Ers coach Kyle Shanahan. Original reporting was that it
was the fault of the other woman that was involved
in the accident. Shanahan spoke to reporters yesterday and said
it was his fault that took his eye off the
road when his phone fell between his seats that he
crossed into oncoming traffic. Draymond Green has played fourteen seasons,
all with the Golden State Wars. He had opted out
so that the Warriors could try and sign Lebron James.
That didn't happen. He signed a new deal with Golden State.
That's Bloomberg Sports Update.
Stay with us. More from Bloomberg day Break 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 app.
This is Bloomberg day Break. Good morning, I'm Nathan Hager.
After several days of relative calm in the Middle East,
the US now says it has intercepted a surprise Iranian
attack on its forces in the region. In the US
and Saudi Arabia have responded with strikes on Iran backed
militias in Iraq for the very latest joining US from
Dubai is Bloomberg News Middle East Managing editor owner aunt
SO owner. We'd seen both sides try to give diplomacy
a more space over the last few days. But after
these latest attacks, are we back to square one?
Good morning, good morning possibly And on the other hand,
it is still possible that diplomacy is taking place in
some shape or form. But yes, the organize strikes carried
out by Saudi Arabia targeting Iran backed militants in Iraq
really is a scary development. This is very rare since
Iraq and Saudi Arabia were involved in a war about
three and a half decades ago at the time of
Saddam Sying. And it also is a sign that this conflict,
unless it comes to an end, has a risk of
spreading to a wider area. Iraq was not an exempt
there were clashes there before, but this is the first
time that the US and the Kingdom of Saudi Arabia
jointly carried out attacks inside Iraq, and it comes right
after Iran backed militants carried out drowne strikes targeting Saudi
Arabia's oil field, Nathan.
Does this gooing to, as you say, a potential new
phase here. I mean, we've seen Iran go after US
interests in Kuwait and bakh Rain cut our in the
UAE as well, but with Saudi Arabia involved, now does
that take things to a potential new level.
It does.
So.
The Arabia's involvement deepened about two and a half weeks
ago when it first attacked the airport in Sanna to
prevent what it said was an arms shipment from Iran
to Hoothy's there, and that spurred tit for tat attacks
between the Kingdom and Huthy's and eventually we saw the
Hoothy's declaring a ban or blockade on Saudi Arabian vessels
trying to exit the Red Seat. Now, what happened overnight
is that the Iranian backed militants in Iraq, which have
been somewhat absent from the conflicts so far or for
much of it, are now in the game as well.
They were accused of targeting Saudi oil facilities, pipelines and
fields over the last couple of days. And this is
this is now possibly a new pont in the making.
This is Bloomberg day Break, your morning podcast on the
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Join us again tomorrow morning for all the news you
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Ray