Trump Heads to NATO Summit; Oil Swings as Hormuz Flows Persist

Bloomberg Audio Studios, Podcasts, Radio News.
Good morning, I'm Karen Moscow and I'm John Tucker.
Here are these stories we're following today.
Well, John, we begin with a crucial NATO summit in Turkey.
President Trump heads to Anchor tonight as tensions rise over
Ukraine Iran in military spending. We get more with the
Bloomberg's Dan Williams in Jerusalem.
Turkey has the second biggest military in NATO after the
United States, and we have a US president who's quite
openly looking to drill down the US presence in NATO,
the US contribution, certainly when it comes to Europe, that's
something that's really troubled European powers, not least given what
is perceived as a rather warm approach that Trump has
been taken to the Russian president.
And Bloombergs Dan Williams or Horse. The US has settled
its allies in recent months with shifting announcements about reducing
its military presence in Europe. Washington has said it wi
would draw about five thousand troops from the continent and
reduce the military assets it would provide in the event
of a crisis, and Karen asked.
For the war in Iran over the weekend, the country's
top leadership gathered for funeral prayers honoring Iatola Ali Komani.
The mourners fill the streets chanting death to America and
death to Israel. This funeral comes as the US continues
negotiations with Teyran aimed at reopening the Strait of Horrormuz
and curbing Iran's nuclear program. We also heard from the
Israeli Prime Minister benjaminet Yea, who he spoke with Fox
News yesterday discussing his excellent relationship with President Trump.
Deal or no deal. As long as I'm Prime Minister,
Iran will not have nuclear weapons. We've been very lucky
that President Trump is leading the United States, leading the
free world in this common effort. And believe me, if
I have things that I want to point out to
him and bring my own opinions, I do so in
a freeway. And when he has things he wants to
tell me, he does that in a freeway too. That's
what friends and allows do with each other.
Israeli Prime Minister net Yohome making the comments despite President
Trump recently telling Axios that nt Yahoo quote knows who
the boss is in reference to the ward with Iran.
Meanwhile, john oil is fluctuating at a narrow range as
flows to the straight up horror moves persisted and opek
plus signaled higher supplies. Oil and gas shipping in the
Strait is showing signs of recovery after a number of
recent unexplained detours over the weekend. Bloomberg's Michael Heath says
the future of the vital Energy Corridor remains unclear.
Some countries have been trying to move oil out that
side as well, and then meantime, as you say, there's
been some u turns by tankers that have been taking
the Omani route through Homer's, so there is there's still
a lot of uncertainty about how that's all going to
work out.
Bloomer's Michael Heath says over the weekend several vessels performed
unexplained you turns and detours and the energy choke point,
and four of them then sail northward toward the Iranian
route and exit this straight and checking the price of
oil right now, West Texas Intermedia down sixtensive percent at
sixty eight dollars twenty five cents of barrel brent. It's
at seventy one dollars fifty eight.
Cents karen Elsewhere overseas, Russia launched fresh waves of missiles
and drones at Kiev overnight, killing at least eleven people.
Whose strikes come on the eve of the NATO's summit,
where President Trump is expected to meet with this Ukrainian counterpart,
Lomar Zelenski, and Ukraine over the weekend hit powasites across Crimea,
deepening the energy crisis in the Black Sea Peninsula. Tony
Halpit leads Bloomberg's team covering Russia in Ukraine.
That's only having a big public effect in Russia because
many Russians now are queuing up for petrol at stations
with long lines or shortages of fuel, precisely because Ukraine
has been striking ever larger and bigger numbers of refineries
and fuel depots, and that's having an impact on public
opinion that this war for many Russians has been quite distant,
hasn't really affected them personally in their data lies, it's
doing that now.
Bloomberg's Tony Halpan was speaking after a weekend of which
President Trump reportedly spoke to Russian President Vladimir Putin on
the phone about the war and the NATO summit, and.
John as A shakesas fire continues to hold in the
US Israeli war with Iran. Fresh analysis from Bloomberg Economics
shows the consequences for global monetary policy are likely to
last for years. The latest forecast show borrowing costs could
increase as much as half a percentage point higher than
expected before the war across economies and may stay elevated
through twenty twenty eight, even as oil prices retreat. Global
central banks remain concerned about the wars after shocks after
post pandemic inflation comp them off guard and to the FED.
Now, Bloomberg News reporting that President Trump and his allies
are renewing their push to reshape the Federal Reserve. Sources
a senior administration officials and outside allies are exploring ways
to remove members of the FED Sport of Governors after
the Supreme Court blocked in effort to fire Governor Lisa Cook.
Cook reportedly remains a target, as does former FED Chair
Jerome Powell. Sources said the President remains angry at Pale
for staying on the Fence Board after his tenure as
chair expired.
Let's start to the markets now, John and stocks are
rebounding after a global market route earlier this week, and
we should say to end the week last week, the
gains offer some relief after the sell off and tech
stocks renewed concerns that the blistering AI rally may be
running out of steam. Monica Defend is head of the
Monday Investment Institute.
Definitely, industrial's going to be a key sector because of
its weights on the market and because this is the
sector where we have the AI enaghbors, and this is
where we think how the value and the performance might
come from.
A Monday's Monica Defense speaking earlier to Bloomberg and today's
bounce comes as traders show renewed confidence that markets can
continue pushing higher in the second half of the year.
Data showed that a diversified portfolio of stock, spawns and
commodities delivered its strongest first half return since twenty twenty one.
ED vests also watching sk Heinex's big adrn't listing this week,
but some analysts say the excitement could be overdone. The
South Korean memory chip giant raising fresh capitals that ramps
up spending on AI related growth. Yet Heinez's core valuation
still likely to depend on memory demand, AI spending and
the Korean macro conditions. They also have earnings US listed
shairs of s k Heinex sent to begin trading on
the nasdak this Friday.
John President Trump spoke at the National Mall late Saturday
to celebrate America's historic two hundred and fiftieth birthday, using
the milestone to promote his political priorities. The celebrations faced
severe disruptions as erratic weather battered the East Coast. The
President lambastad the rise of communism in the United States,
calling it the country's greatest threat.
And all these talks from the communists, they haven't got
a chest, not even in says we don't want communists
in our countin never worked and it never will worked in.
President Trump visited South Dakota on Friday, where he used
to speech at the Mount Rushmore Monument, to issue a
similar warning of the threat of communists. And the comments
come after recent primary wins by Democratic Socialist candidates and
several key primaries.
And FIFA clearer the US star a fuller in Balligan
to play in the World Cup match against Belgium following
a personal appeal by President Trump, with a suspension of
an automatic punishment rarer within the World Cup finals also
sparked outrage among competing teams. In Bloomberg's Tiwa out of
Baio has More.
Ballogan received a red card for a foul in his
last game, which would normally result in an immediate ejection
and a one match suspension. However, according to The Wall
Street Journal, President Trump found FIFA President Jihannny Infantino and
urged him to review the decision. Infantino reportedly agreed to
look into the matter, but stop short of committing to
overturn the suspension. FIFA's Disciplinary committee then remove the automatic
one game ban and instead put Ballagun on probation for
one year. Belgium's football federation said it was astonished by
FIFA's decision to allow him to play in London. Tea
Adebayo Bloomberg Radio.
And that brings us to five o nine The Odd
Wall Street Time down 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 Bark.
Good Morning, My.
Good morning, John. The stormy Sunday hit pockets of the
Midwest and East Coast, bringing intense rain, high winds, and
dangerous conditions. A floodwatch is in effect for the New
York City area until six am tomorrow. With more here's
Bloomberg Media Ronald Justs Craig Allen.
Downpours will plague the mid Atlantic today and tomorrow, and
some of these thunderstorms will produce flash flooding from DC
up to Boston. Now the most prominent and potentially dangerous
flooding will occur between philadel in New York City in
Hartford for today and then between New York City and
Boston tomorrow. And this new weather system will keep it
humid and the slow movement will wring out the heavy
rain from place to place in time to time. The
threat less into Tuesday and could present travel challenges for
those getting back home or heading back to work. Warm
and drier weather is expected, but not until.
Midweek, Bloomberg meteorologist Craig Allen. The storms knocked out power
and New Jersey Governor mikey Cheryl says NJ transit trains
have been heavily impacted.
The morson Essex Line.
I'm very concerned about we'reputting resources in there.
Meanwhile, more than two dozen people are believed to have
died from the dangerous heat wave in New Jersey during
the Fourth of July holiday weekend. Official say many of
those who died did not have air conditioning in their homes.
In New York City, eight people, including four children, were
shot in Coney Island by a masked gunman, leaving a
twenty one year old woman in critical condition. According to police,
the victims were outside celebrating the Fourth of July with
the family barbecue when the gunman appeared at the fence
of their courtyard and began firing at the crowd. New
York City Mayor Zorn THEMDANI.
There is no place for this kind of violence in
our city.
We will not tolerate it, and we will fight it
with every single tool at our disposal.
The suspect fled on foot. A scary moment for people
aboard a Long island seaplane, it made a hard landing
in New York City's East River Sunday. The landing caused
one of the struts to break. Eight people were rescued,
two suffered minor injuries. The FAA is now investigating global
news twenty four hours a day and whenever you want
it with Bloomberg News Now him Michael Barr and this
is Bloomberg John.
Thanks Michael all time now for our Bloomberg Sports updating.
For that, we bring in John stash Hour.
Beans Year and wild World Cup game last night in
Mexico had an allout of goal through the first four games,
then England scored twice on them in two minutes. Mexico
scored four minutes later. England had to play the last
thirty six minutes with ten men after a red card,
still held on to win three to two. Norway upset
Brazil two to one. It's the US and Belgium tonight
and the US will have top score Florian Baligan despite
the red card in the previous game. Upset at Wimbledon
is Naomi Osaka top to Arena Sabolenka. That's a Bloomberg
Sports update.
Stay with us. More from Bloomberg day Break coming up
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And President Trump is headed to Turkey for this week
SHINATO SAMIT talks are expected to focus on the war
in Ukraine, but European defense spending, the Iran war, and
the president's views on Greenland could also come up. And
we want to get more now we've got them. Mukunda Bloomberg,
opinion columnist and lecturer at Yale School of Management, Countham,
thanks so much for being here this morning. Let's jump
right in. So, as we said, Trump is heading to Turkey,
what are his goals at this NATO summit.
So there's most likely his goals or domestic politics that
he's going to try and impress his base with his
ability to stand up to to NATO allies and sort
of bully them and gesture dramatically. He may also have
some larger intentions about trying to trying to increase NATO's spending,
although that battles largely over at this point. May be
trying to get NATO to decrease it to sort of
back off on its support for Ukraine in the hopes
of forcing a settlement there pretty quickly, but this seems
largely ceremonial at this point. The relations with NATO allies
are so catastrophically poor thanks to the series of choices
he's made, I'm not sure what he can get out
of it.
So you're really not seeing any big developments. Then it
sounds like, no.
There's always the possibility of big developments. What I'm not
seeing is the possibility of big positive developments. There's always
the chance that Trump will do something that will, you know,
further weaken the NATO alliance or get the allies to
the United States even more sort of even less dependable.
But at this point when NATO allies are running wargames
about how to defend a NATO country from an attack
by the United States, which what has actually happened in
Greenland that is not hypothetical. They actually made those plans.
We've reached a NATA in the Transatlantic relationship that it's
kind of hard to imagine even a few years ago.
All right, well, this is interesting too because this is
all being hosted by Turkey and President Trump is meeting
with Turkey's president before this all begins. What is Turkey's
position in all this?
So Turkey has always been you know, it has been
a NATO ally for a long time, but it has
always a little bit of a difficult situation for you know,
sort of a combination of reasons, both cultural and political,
and the President trump sort of attitude towards global Islam
and particularly you know, Turkey, which is led by an
Islamist government at the moment, is going to make that
particularly fraud. On the other hand, you know, there's always
a lot of incentive to paper these things over in
the course of a summit.
I would be.
Curious about Turkey. I'd be particularly curious of that actually,
about the relationship between Trump and Italy right now, where
even though the Italian government is also right wing and
aligned with Trump on basically all policy goals, for reasons
that kind of passive understanding, He's been making it a
point to continually insult the Prime Minister of Italy, who,
for obvious readings, is not taking it well.
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