U.S.-Iran Tensions Rise; Musk's Brain Chip Implant

Good morning. 0:00:03.080 --> 0:00:05.920 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:05.960 --> 0:00:07.440 stories we're following today. 0:00:07.800 --> 0:00:11.040 We begin again in the Middle East. That's after Iran 0:00:11.320 --> 0:00:15.239 urged the Biden administration to use diplomacy as the US 0:00:15.320 --> 0:00:17.959 ways how to retaliate against a deadly attack at a 0:00:17.960 --> 0:00:21.720 military base in Jordan. Bloomberg's Amy Morris with the details 0:00:21.720 --> 0:00:22.520 from Washington. 0:00:23.000 --> 0:00:26.279 Iran's foreign minister says active diplomacy is underway to find 0:00:26.280 --> 0:00:29.160 a solution to the war in Gaza and the regional fallout. 0:00:29.600 --> 0:00:32.479 But three US soldiers were killed and dozens more were 0:00:32.479 --> 0:00:35.360 wounded in that drone attack by in Iran backed militia, 0:00:35.600 --> 0:00:37.920 and now there are concerns the US could be drawn 0:00:38.040 --> 0:00:40.760 into a war in the Middle East. Secretary of State 0:00:40.760 --> 0:00:43.080 Anthony Blincoln called out those rebel groups. 0:00:43.360 --> 0:00:46.680 They may say that they're doing that somehow in response 0:00:46.720 --> 0:00:50.080 to Gaza, but every action they're taking really is to 0:00:50.320 --> 0:00:53.000 perpetuate the conflict and to expand it. 0:00:53.200 --> 0:00:57.000 President Biden says there will be a response. Iran denies 0:00:57.120 --> 0:01:01.000 involvement in the strike in Washington, Amy Morris Blomberg Radio, All. 0:01:01.000 --> 0:01:03.040 Right, Amy, thank you well. In other developments in the 0:01:03.040 --> 0:01:06.319 Middle East, this morning, Israeli intelligence is claiming up to 0:01:06.360 --> 0:01:09.880 ten percent of the UN relief agencies twelve thousand workers 0:01:09.920 --> 0:01:14.040 in Gaza were members of Hamas and Palestinian Islamic Jihad. 0:01:14.360 --> 0:01:17.840 The United Nations fired several agency staffers last week in 0:01:17.880 --> 0:01:21.319 response to Israel's initial claim about their militant ties. They 0:01:21.400 --> 0:01:24.639 yet more from Bloomberg News Middle East Breaking News editor 0:01:24.720 --> 0:01:25.920 Dana Krash we. 0:01:26.080 --> 0:01:29.200 Did have a story on the terminal looking at some 0:01:29.400 --> 0:01:32.319 documents that Israel had shared with the US that ten 0:01:32.360 --> 0:01:35.920 percent of the onorwa's staff were involved in the October 0:01:35.959 --> 0:01:39.960 seven attack by Hamas. Now, the UN agency doesn't only 0:01:40.080 --> 0:01:43.200 eight Palestinians in Gaza, but it also refugees scattered in 0:01:43.240 --> 0:01:46.840 the region in places like Clebanon. So cutting funding would 0:01:46.880 --> 0:01:50.040 have an impact on the livelihood of Palestinians inside Gaza 0:01:50.040 --> 0:01:51.200 and the refugees elsewhere. 0:01:51.400 --> 0:01:54.320 Bloomberg's Dana Krajh says the document did not name any 0:01:54.360 --> 0:01:57.200 of the suspects and could not be independently verified. 0:01:57.360 --> 0:01:57.480 Well. 0:01:57.520 --> 0:02:00.680 Karen Let's turn out to a major technological development back 0:02:00.680 --> 0:02:03.920 here in the US. Elon Musk says the first human 0:02:04.000 --> 0:02:07.800 patient has received a brain implant from his Neuralink startup. 0:02:07.840 --> 0:02:10.000 In Bloomberg's Ed Baxter has the story. 0:02:10.600 --> 0:02:13.880 Musk says this is a significant step forward for the company. 0:02:13.919 --> 0:02:16.920 He says it aims to one day let humans control 0:02:17.000 --> 0:02:20.480 computers with their minds. He's posted that the patient is 0:02:20.520 --> 0:02:23.320 recovering well and that the initial results of the procedure 0:02:23.360 --> 0:02:26.760 are promising. The first goal for Neuralink is to help 0:02:26.800 --> 0:02:30.520 people with traumatic injuries to operate computers with only their thoughts, 0:02:30.919 --> 0:02:34.360 and to help patients with conditions from cervical spinal cord 0:02:34.440 --> 0:02:39.399 injury to als. It does have FDA clearance for the trials. 0:02:40.040 --> 0:02:41.840 Ed Baxter Bloomberg Radio, all. 0:02:41.800 --> 0:02:43.799 Right, Ed, thanks, So he turned to the markets. Now 0:02:43.840 --> 0:02:46.600 in stocks enter the day, coming off yet another record 0:02:46.720 --> 0:02:49.960 high earnings will once again be the focus, with thirty 0:02:49.960 --> 0:02:52.520 companies in the S and P five hundred reporting today, 0:02:52.960 --> 0:02:55.160 high tech will be a major theme and for where 0:02:55.160 --> 0:02:57.560 we're joined by Bloomberg's John Tucker, John. 0:02:57.480 --> 0:03:01.240 And Karen, the first of the Magnificence seven texts open 0:03:01.320 --> 0:03:05.600 their books with Google parent Alphabet and Microsoft both are 0:03:05.720 --> 0:03:08.400 likely to post record revenue. An A rag Rana with 0:03:08.440 --> 0:03:12.000 Bloomberg Intelligence is the big driver for Microsoft, which just 0:03:12.080 --> 0:03:14.840 hit a three trillion dollar market cap is the cloud 0:03:15.000 --> 0:03:19.320 infrastructure business because that intersects with the big players in 0:03:19.560 --> 0:03:20.840 artificial intelligence. 0:03:21.280 --> 0:03:25.160 Opening Eyes back end is Microsoft's cloud infrastructure, so you 0:03:25.360 --> 0:03:26.840 use a lot more Jack GPT. 0:03:27.280 --> 0:03:29.840 Microsoft makes more money off of it, So that's the 0:03:29.880 --> 0:03:31.079 way you want to think about it. 0:03:31.080 --> 0:03:33.360 The investors will also be looking to hear more about 0:03:33.400 --> 0:03:37.240 Alphabet's Gemini, the company's latest push in the AI, as 0:03:37.320 --> 0:03:40.120 well as an update on the state of the advertising market. 0:03:40.320 --> 0:03:43.120 Both companies are porty after the close. I'm John Tucker, 0:03:43.160 --> 0:03:44.000 Bloomberg Radio. 0:03:44.240 --> 0:03:46.200 All right, John, Thanks. It's also a busy day for 0:03:46.280 --> 0:03:49.320 earnings in Europe, and one company across the pond is 0:03:49.800 --> 0:03:54.240 disappointing investors. Shares of Diagio are down more than three percent. 0:03:54.640 --> 0:03:57.040 For the explanation, we go to London and check in 0:03:57.080 --> 0:03:58.760 with Bloomberg's Critty Goodda. 0:03:58.480 --> 0:04:03.200 Critty Nathanrop an adjusting operating profit from the world's largest 0:04:03.200 --> 0:04:06.320 makers of whiskey and tequila, Tashu, coming out with yet 0:04:06.360 --> 0:04:09.160 another set of weak numbers after issuing a profit warning 0:04:09.240 --> 0:04:13.040 back in November to slow down North American sales, compounding 0:04:13.120 --> 0:04:15.120 with a collapse in demand from the Latin American and 0:04:15.160 --> 0:04:17.800 Caribbean region. That means the company is staring down the 0:04:17.800 --> 0:04:20.240 barrel of a price high. Ceo Deba cruising that the 0:04:20.240 --> 0:04:23.800 focus is still on premiisation of products even as consumers 0:04:23.800 --> 0:04:27.040 switch to cheaper alternatives. In the meantime, Tequila sales slowing 0:04:27.080 --> 0:04:29.960 down in the United States, Theaggio's biggest market, something the 0:04:29.960 --> 0:04:33.040 company is looking to expand in Europe. But the report 0:04:33.080 --> 0:04:35.360 comes in start contrast to blockbuster numbers out of the 0:04:35.360 --> 0:04:38.480 spears business here in lvmh and Remi contro creti Gupta 0:04:38.520 --> 0:04:39.760 Bloomberg News, all. 0:04:39.720 --> 0:04:42.839 Right, CRITI thank you. In Asia, Hong Kong stocks film 0:04:42.880 --> 0:04:45.839 more than two percent. The impact of China, Evergrand Groups 0:04:45.839 --> 0:04:49.279 liquidation order has had ripple effects. We get more from 0:04:49.279 --> 0:04:51.479 Bloomberg's Justina Lee in Singapore. 0:04:51.760 --> 0:04:54.919 Given that a big focus of this property crisis is 0:04:55.040 --> 0:04:57.599 the are these like pre sold homes that people bought 0:04:58.120 --> 0:05:00.880 kind of expecting for them to be delivered in a 0:05:00.880 --> 0:05:03.440 few years. I think that's definitely going to hurt confidence 0:05:03.720 --> 0:05:06.320 and as part of the market in particular, and that 0:05:06.440 --> 0:05:09.240 is going to further kind of counteract all these moves 0:05:09.279 --> 0:05:12.839 the government has been making in order to stabilize confidence. 0:05:13.000 --> 0:05:17.080 Bloomberg Justina Elise As China's benchmark government bond yield fell 0:05:17.160 --> 0:05:19.920 to its lowest in nearly twenty two years as mounting 0:05:19.960 --> 0:05:22.800 expectations for further monetary easing increased. 0:05:23.279 --> 0:05:26.320 Back to corporate news in the US, Karen IBM wants 0:05:26.360 --> 0:05:28.960 its workers back in the office. In fact, the company 0:05:29.000 --> 0:05:31.680 delivered an ultimatum to managers who are still working remotely 0:05:31.760 --> 0:05:34.800 move near an office or leave the company. According to 0:05:34.800 --> 0:05:37.520 a memo seen by Bloomberg, IBM workers must report to 0:05:37.560 --> 0:05:39.719 an office at least three days a week, regardless of 0:05:39.760 --> 0:05:41.279 current work location status. 0:05:41.680 --> 0:05:44.679 Well, job cauds are coming at a major airline, Nathan 0:05:44.720 --> 0:05:47.080 American Airline says it all layoff six hundred and fifty 0:05:47.120 --> 0:05:50.280 six employees who help passengers with lost luggage and other 0:05:50.360 --> 0:05:54.520 travel problems. Those jobs will be consolidated to other teams. 0:05:58.120 --> 0:05:59.360 It's time now for a look at some of the 0:05:59.400 --> 0:06:01.680 other stories making news around the world, and for that 0:06:01.720 --> 0:06:05.359 we're joined by Bloomberg's Amy Morris. Say me, good morning, Good. 0:06:05.160 --> 0:06:05.799 Morning, Kieren. 0:06:05.920 --> 0:06:08.400 We do expect to learn more about the effort by 0:06:08.400 --> 0:06:12.520 House Republicans to impeach Homeland Security Secretary Alejandro Miyorcis in 0:06:12.560 --> 0:06:16.680 a hearing this morning at the Capitol, Republican Congressman Mike McCall, 0:06:16.720 --> 0:06:20.559 who is chairing today's hearing, says Majorcus needs to pay 0:06:20.720 --> 0:06:22.440 for the crisis at the border. 0:06:22.600 --> 0:06:25.159 Nobody deserves it more than this man. 0:06:25.520 --> 0:06:29.120 I call him the architect of destruction and chaos. 0:06:29.520 --> 0:06:32.359 He has created this crisis and he knows better. 0:06:32.440 --> 0:06:35.480 Lawmakers are expected to go over two articles of impeachment, 0:06:35.560 --> 0:06:39.279 Democrats say the efforts of political sham. The Biden administration 0:06:39.400 --> 0:06:41.719 is calling on House Republicans to get on board with 0:06:41.720 --> 0:06:44.480 the bipartisan border deal expected to come out of the Senate. 0:06:44.800 --> 0:06:46.760 Press Secretary Karine Jean Pierre. 0:06:47.080 --> 0:06:50.360 The byperson agreement that they're coming forward with are things 0:06:50.400 --> 0:06:54.800 that House Republicans have said, and Republicans more broadly said 0:06:54.839 --> 0:06:57.279 they wanted. They have said over and over again, this 0:06:57.360 --> 0:06:58.400 is what they want to see. 0:06:58.480 --> 0:07:01.159 This comes after House Speaker Mike Johnson laid last week 0:07:01.200 --> 0:07:03.560 says the deal is likely dead on arrival in his 0:07:03.680 --> 0:07:07.240 chamber as it doesn't go far enough. US officials believe 0:07:07.279 --> 0:07:09.520 the drone attack at a US base in Jordan over 0:07:09.560 --> 0:07:12.240 the weekend that killed three Americans may have been a 0:07:12.280 --> 0:07:15.960 case of mistaken identity. Bloomberg's Nancy Lions explains. 0:07:16.160 --> 0:07:19.800 US officials say their preliminary investigation is discovered. The drone 0:07:19.800 --> 0:07:23.560 that carried out the attack was apparently confused with an 0:07:23.560 --> 0:07:26.200 American drone that was returning to the base. That's why 0:07:26.240 --> 0:07:29.280 it was not shot down. And Deputy Press Secretary for 0:07:29.320 --> 0:07:32.800 the Pentagon, Sabrina Singh says they're also trying to determine 0:07:32.840 --> 0:07:35.400 who was behind the attack. We know these groups are 0:07:35.400 --> 0:07:39.160 supported by Iran and therefore they do have their fingerprints 0:07:39.160 --> 0:07:40.840 on this, but I can't tell you more in terms 0:07:40.880 --> 0:07:43.560 of who directed the attack. All three soldiers lost were 0:07:43.600 --> 0:07:46.800 based out of Fort Moore, Georgia. US officials say they 0:07:46.840 --> 0:07:51.120 will hold those responsible to account. In Washington, Nancy Lyons 0:07:51.160 --> 0:07:52.320 Bloomberg Radio. 0:07:52.160 --> 0:07:55.880 Florida Governor Ronda Santis is calling for constitutional reforms in 0:07:56.040 --> 0:07:59.080 Washington after he got out of the presidential race. 0:07:59.200 --> 0:08:00.760 We have it in Flora. You know what. 0:08:00.880 --> 0:08:03.760 It works because people have a limited amount of time. 0:08:04.040 --> 0:08:06.800 Their incentives are to make a difference, not to stay 0:08:06.800 --> 0:08:09.560 in office for thirty or forty years. Dessenttis calling for 0:08:09.600 --> 0:08:12.239 a balanced budget, giving the president a line item veto, 0:08:12.360 --> 0:08:15.600 and term limits for all members of Congress. Global News 0:08:15.600 --> 0:08:17.480 twenty four hours a day and whenever you want it. 0:08:17.520 --> 0:08:21.680 With Bloomberg News Now. I'm Amy Morrison. This is Bloomberg Karen. 0:08:21.400 --> 0:08:23.320 All right, Amy, thank you. We do bring you news 0:08:23.360 --> 0:08:26.040 throughout the day right here on Bloomberg Radio. But now 0:08:26.040 --> 0:08:28.720 you can get the latest news on demand whenever you 0:08:29.000 --> 0:08:31.800 want it. Just subscribe to Bloomberg News Now and you 0:08:31.800 --> 0:08:33.559 can get the latest headlines right to the click of 0:08:33.600 --> 0:08:36.720 a button. Get informed on your schedule. You can listen 0:08:36.800 --> 0:08:40.640 and subscribe to Bloomberg News Now on the Bloomberg Business app, 0:08:40.679 --> 0:08:44.600 Bloomberg dot Com plus apples, Spotify, and anywhere else you 0:08:44.640 --> 0:08:52.080 get your podcasts. Time now for the Bloomberg Sports Update 0:08:52.160 --> 0:08:53.280 with John stash Hour. 0:08:53.440 --> 0:08:55.840 John here, I'm busy tonight in the NBA, a twelve 0:08:55.920 --> 0:08:59.000 game swait including the top two teams in the West 0:08:59.000 --> 0:09:02.160 meeting in Oklahoma City, Minnesota won one oh seven, one 0:09:02.200 --> 0:09:04.240 oh one, and the Timberwolves have a one game lead. 0:09:04.640 --> 0:09:07.920 Lakers were in Houston. There's some history between Lebron James 0:09:08.000 --> 0:09:10.000 and the Rockets Dylan Brooks, and in the second half, 0:09:10.080 --> 0:09:13.360 Brooks hit Lebron in the face. Anthony Davis said later 0:09:13.400 --> 0:09:15.200 he should have been kicked out of the game. The 0:09:15.360 --> 0:09:17.520 Rockets were up by thirty at one point. They beat 0:09:17.520 --> 0:09:20.520 the Lakers one thirty five till one nineteen. Top Rivers 0:09:20.559 --> 0:09:22.920 first game on the bench from Milwaukee. The Bucks lost 0:09:22.920 --> 0:09:25.000 at Denver one thirteen, one oh seven of the Kola 0:09:25.080 --> 0:09:26.240 Yokud scored twenty five. 0:09:26.559 --> 0:09:27.640 He had a triple double. 0:09:27.679 --> 0:09:30.040 Phoenix won in Miami one eighteen to one oh five 0:09:30.080 --> 0:09:32.240 that he had now lost seven to row there just 0:09:32.240 --> 0:09:35.640 a game over five hundred. Celtics found themselves down nine 0:09:35.679 --> 0:09:38.439 in the first quarter, came back beating New Orleans one 0:09:38.559 --> 0:09:41.760 eighteen to one twelve. Jason Tatum twenty eight points, ten rebounds, 0:09:41.760 --> 0:09:44.199 eight assists. Wizards was just their ninth win of the 0:09:44.240 --> 0:09:47.760 season one eighteen, one thirteen at San Antonio, the Sprus 0:09:47.840 --> 0:09:51.160 only won ten. College Joads Dukes won three straight eleven 0:09:51.160 --> 0:09:53.360 of the last twelve, now seventh of the nation. Who 0:09:53.480 --> 0:09:56.559 Devil's one of Virginia Techs seventy seven sixty seven, Houston 0:09:56.640 --> 0:09:59.960 ranked fourth, needed overtime one at Texas seventy six seventy two. 0:10:00.200 --> 0:10:03.240 Jamal Seed scored twenty five. Jeeves and forty nine ers 0:10:03.240 --> 0:10:05.760 getting ready for Super Bowl fifty eight in Las Vegas, 0:10:06.120 --> 0:10:08.720 both had tough stretches during the regular season, the Niners 0:10:08.760 --> 0:10:11.319 had a three game losing streaking in October, though are 0:10:11.360 --> 0:10:14.120 fourteen and two. Outside of that that, Chiefs had an 0:10:14.160 --> 0:10:17.240 eight game stretcher, they went just three and five. Obviously, 0:10:17.280 --> 0:10:20.079 have turned things around with three playoff wins. John stash 0:10:20.120 --> 0:10:21.320 Ellen Bloomberg. 0:10:21.000 --> 0:10:27.120 Sports from coast to coast, from New York to San Francisco, 0:10:27.440 --> 0:10:32.079 Boston to Washington, DC, nationwide on Syrias Exam the Bloomberg 0:10:32.120 --> 0:10:36.280 Business app in Bloomberg dot Com. This is Bloomberg Daybreak. 0:10:37.559 --> 0:10:40.320 Good morning, I'm Nathan Hager. The White House continues to 0:10:40.320 --> 0:10:43.439 weigh its response to the drone attack that killed three 0:10:43.559 --> 0:10:47.040 US soldiers over the weekend in Jordan, but President Biden 0:10:47.120 --> 0:10:49.880 is trying to avoid a direct confrontation with Iran, the 0:10:49.920 --> 0:10:52.920 country that backs the militant group blamed for that strike. 0:10:52.960 --> 0:10:56.160 For the latest spear, joined by Roslind Matheson, Bloomberg's news 0:10:56.240 --> 0:10:59.800 director for Europe, the Middle East and Africa, Ros, good morning. 0:11:00.000 --> 0:11:02.600 Whatever the options are, it doesn't sound like they are 0:11:02.679 --> 0:11:06.800 easy for this White House. What could the potential options be? 0:11:07.800 --> 0:11:10.160 Well, it is, as you say, not easy at all. 0:11:10.200 --> 0:11:12.720 It's a bit like weighing a scale, because you need 0:11:12.760 --> 0:11:15.920 to have a response that sort of sends a strong 0:11:15.960 --> 0:11:19.960 message from the US but doesn't tip things over in 0:11:20.080 --> 0:11:23.680 terms of a full scale conflict potentially with Iran. So 0:11:23.720 --> 0:11:27.360 the options range from the ultimate one, which is hitting 0:11:27.400 --> 0:11:31.360 Iran directly a site in Iran directly by the US. 0:11:31.440 --> 0:11:35.360 That's not something that's happened in quite some time, to 0:11:35.480 --> 0:11:41.080 retaliating in other ways, which might be attacking Iranian assets 0:11:41.160 --> 0:11:44.000 in a place like Syria or in Iraq or somewhere else. 0:11:44.400 --> 0:11:47.800 Of course, they've already been conducting air strikes on the 0:11:47.880 --> 0:11:52.560 Huthi militants in Yemen, also backed by Iran, so just 0:11:52.640 --> 0:11:55.640 doing a repeat of that probably doesn't send that stepped 0:11:55.679 --> 0:11:59.400 up message. Or maybe you know, Israel has sort of 0:11:59.440 --> 0:12:02.319 made noises for quite some time about their desire potentially 0:12:02.360 --> 0:12:05.520 to hit Iran themselves, maybe the US gives them a 0:12:05.600 --> 0:12:08.120 pass to do so. So there's a whole range of 0:12:08.200 --> 0:12:11.720 things that are potentially on the table. But again, the 0:12:11.800 --> 0:12:15.240 end calculations, you say, is finding that response that is 0:12:15.640 --> 0:12:17.640 a step up from what they've been doing so far, 0:12:17.760 --> 0:12:22.160 but doesn't lead Aroun to do something even bigger in response. 0:12:22.600 --> 0:12:25.680 Now, in response, the Foreign Minister of Iran has gone 0:12:25.720 --> 0:12:28.520 on social media, the X platform, saying that the White 0:12:28.520 --> 0:12:31.080 House knows full well the only solution to resolving the 0:12:31.120 --> 0:12:35.360 crisis in the Middle East is political pushing diplomacy as 0:12:35.400 --> 0:12:37.200 an option. But I mean, that's got to be a 0:12:37.240 --> 0:12:40.920 tough cell, given that the US sees Iran behind so 0:12:41.080 --> 0:12:44.080 many of the militant groups in the Middle East, not 0:12:44.160 --> 0:12:46.199 the least of which is Hamas and Gaza. 0:12:47.000 --> 0:12:50.480 What's interesting seeing the Iranian response in recent days, because, 0:12:50.520 --> 0:12:54.320 for start, they sort of distanced themselves from this drone 0:12:54.320 --> 0:12:57.560 attack on the US troops in Jordan. I'm saying that 0:12:57.640 --> 0:12:59.679 was not something that they had ordered and in a 0:12:59.720 --> 0:13:03.720 way down playing their ability to give instructions to these 0:13:03.720 --> 0:13:07.720 proxies operating in these places. Perhaps that's deliberate, Perhaps there's 0:13:07.760 --> 0:13:10.560 some reality in that, and that's that Iran doesn't control 0:13:10.600 --> 0:13:14.080 these proxies as much as we think, and perhaps they 0:13:14.080 --> 0:13:16.560 did act on their own regard. But certainly there's been 0:13:16.600 --> 0:13:18.440 a bit of an effort, it seems, by Iran to 0:13:18.480 --> 0:13:22.800 put some space between itself and this attack on US soldiers, 0:13:22.800 --> 0:13:25.920 and as you say, sort of talk about diplomatic overtures 0:13:25.960 --> 0:13:28.840 and measures. We do know there have been back channels 0:13:28.840 --> 0:13:32.680 continuing between the US and Iran throughout. That's been acknowledged, 0:13:33.120 --> 0:13:36.000 certainly by the US. Also, we know they're passing messages 0:13:36.040 --> 0:13:39.400 to each other, so at least those lines of communication 0:13:39.600 --> 0:13:42.040 remain open. But as you say, at this point, given 0:13:42.679 --> 0:13:45.720 what happened in Jordan, the US will feel compelled in 0:13:45.760 --> 0:13:46.680 some way to respond. 0:13:47.200 --> 0:13:49.120 Now, I think the closest I've heard to the US 0:13:49.200 --> 0:13:51.719 blaming Iran for this attack is saying that Tehran has 0:13:51.760 --> 0:13:56.160 its fingerprints on the Jordan's strike. Does that point potentially 0:13:56.200 --> 0:13:58.599 to how the US could respond to this? 0:13:59.840 --> 0:14:01.520 It does a bit. As you say, they're all being 0:14:01.600 --> 0:14:06.199 very very careful with language at the moment, including the US. 0:14:06.240 --> 0:14:07.920 So you can see that from what we've been hearing 0:14:07.960 --> 0:14:11.720 from the White House overnight, again both publicly and what 0:14:11.760 --> 0:14:16.320 we know is happening in their conversations privately. But the 0:14:16.440 --> 0:14:18.920 end result is simply that the US is going to 0:14:19.040 --> 0:14:22.080 probably have to find some way to respond. The pressure 0:14:22.120 --> 0:14:25.200 on the US President Joe Biden to do something is enormous, 0:14:25.520 --> 0:14:29.440 not just from his own ranks, but also from Republicans 0:14:29.880 --> 0:14:32.440 in the US, certainly some conservative quarters who are saying 0:14:32.480 --> 0:14:37.000 he needs to hit Tehran outright. So there's public pressure 0:14:37.040 --> 0:14:40.160 on him to do something and of course to hit 0:14:40.160 --> 0:14:42.720 that right note in terms of the response. But least 0:14:42.720 --> 0:14:45.360 of all, the US president does not want to be 0:14:45.760 --> 0:14:48.040 pulling the US into a full conflict in the Middle 0:14:48.080 --> 0:14:49.160 East in an election year. 0:14:49.520 --> 0:14:51.160 And on the other side of the coin, I'd have 0:14:51.240 --> 0:14:53.960 to think the president is facing pressure as well not 0:14:54.200 --> 0:14:57.680 to royal the global economy because of the kind of 0:14:57.760 --> 0:15:01.400 ripple effect that a direct conference whether I ran could have. 0:15:02.240 --> 0:15:04.800 Well, that's right, and we've already seen the impact of 0:15:04.840 --> 0:15:08.160 the disruption for some months now to shipping in the 0:15:08.200 --> 0:15:11.440 Red Sea because of the hoothy attacks on shipping and 0:15:11.480 --> 0:15:13.440 the longer routes that ships are having to take. We're 0:15:13.440 --> 0:15:17.880 seeing that impact some of the global supply chain for produce, 0:15:18.320 --> 0:15:21.400 for livestock, for parts for cars and so on, and 0:15:21.440 --> 0:15:23.520 also for oil and gas. I mean, we're helped at 0:15:23.560 --> 0:15:26.240 the moment by the fact that demand for oil has 0:15:26.280 --> 0:15:29.960 been on a downtech. Our gas supplies plentiful in Europe, 0:15:30.000 --> 0:15:33.480 So those disruptions are not feeding significantly into the market 0:15:33.600 --> 0:15:35.960 or the real economy at the moment. But if you 0:15:36.000 --> 0:15:37.800 talk about a full conflict with the Ruan, then you're 0:15:37.800 --> 0:15:43.000 talking about major disruption to global supply, particularly again of 0:15:43.080 --> 0:15:45.440 oil and gas, and certainly a knock on effect to 0:15:45.480 --> 0:15:47.600 the global economy at that point. And that's something the 0:15:47.680 --> 0:15:51.080 US President is very attuned to. A this is not 0:15:51.120 --> 0:15:53.920 a moment the economy globally can afford that, and also 0:15:53.960 --> 0:15:55.480 politically at home, can he afford that. 0:15:57.800 --> 0:16:01.320 This is Bloomberg Daybreak Today morning brief on the stories 0:16:01.360 --> 0:16:04.360 making news from Wall Street to Washington and beyond. 0:16:04.600 --> 0:16:07.400 Look for us on your podcast feed at six am 0:16:07.440 --> 0:16:11.120 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:11.200 --> 0:16:12.360 get your podcasts. 0:16:12.480 --> 0:16:15.160 You can also listen live each morning starting at five 0:16:15.240 --> 0:16:17.800 am Wall Street time on Bloomberg eleven three to zero 0:16:17.880 --> 0:16:20.760 in New York, Bloomberg ninety nine to one in Washington, 0:16:20.800 --> 0:16:23.680 Bloomberg one oh six to one in Boston, and Bloomberg 0:16:23.760 --> 0:16:25.440 ninety sixty in San Francisco. 0:16:25.840 --> 0:16:28.960 Our flagship New York station is also available on your 0:16:29.040 --> 0:16:34.480 Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus. 0:16:34.480 --> 0:16:37.960 Listen coast to coast on the Bloomberg Business app, SERIUSXM, 0:16:38.040 --> 0:16:41.640 the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan 0:16:41.640 --> 0:16:43.240 Hager and I'm Karen Moscow. 0:16:43.440 --> 0:16:46.200 Join us again. Tomorrow morning for all the news you 0:16:46.320 --> 0:16:49.560 need to start your day right here on Bloomberg Daybreak. 0:17:02.680 --> 0:17:03.240 He then