US, Israel Clash Over Lebanon, Threatening Iran Negotiations

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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 on the war with Iran.
Efforts to keep a peace deal on track if turned
complicated thanks to fighting between Israel and Iran backed Hezbala
in Lebanon. Iran has said it's suspending talks with the
US due to the clashes, but President Trump posted on
social media that Israel turned its troops around after he
asked Prime Minister Benjamin Netan Yahoo not to conduct a
major raid in Beirut. Later, Netanyahu posted that Israel will
strike if Hezbala doesn't stop firing on his country. We
get more from Bloomberg zabirabu Omar in Dubai.
Lebanon has emerged as a sticking point in the wider
negotiations between Iran and the United States. So what we
know is Axios reported earlier in expletive leaden call Queen
President Trump and Prime Minister Benjamin N'atagnan, who yesterday and
the President Trump came after and said that Israel had
agreed to not raid the capital of Lebanon, Beirut. This
is after Benjamin Natagnell, who said that there were plans
to send troops or to attack the suburbs in Beirut.
Bloomberg's Bier Abu Omar reports President Trump's also saying talks
with Iran are continuing at a rapid pace, but Tehran
disputes that. The semi official Mayor's news agency is reporting
Iran's discussing its final text of an interim peace steal,
but no response has been sent yet. The report says
Iran is being strict due to pass breaches of trust
by the US.
Well in the US Nathan, President Trump is looking to
address rising costs for farmers and manufacturers. The White House
says it's cutting tariffs on agricultural equipment from twenty five
to fifteen percent. The proclamation says foreign companies could qualify
for a lower ten percent rate if their equipment contains
at least eighty five percent American steel or aluminum. The
tariff changes take effect on Sunday and run through the
end of next year.
Also on the trade front, Karen European Union lawmakers have
given preliminary approval to their trade deal with the US
as clear as a path for final ratification for President
Trump's threatened higher tariff deadline. The full European Parliament's now
scheduled to vote on ratification two weeks from today. EU
member states are expected to give their final assent shortly
after that.
Nathan my Partisan backlash has pushed the Trump administration to
draw plans to pursue a controversial anti weaponization fund. Bloomber's
Monica Rix as the details.
The Trump administration says it's scrapping a one point eight
billion dollar legal fund for victims of alleged government weaponization,
including January six riders. The move followed backlash from both
Democrats and Republicans, who called this a slush fund for
Trump's allies. Now it's still unclear whether this will affect
the president's settlement with the IRS, which banned the agency
from looking into his tax returns, but several GEO the
Peace senators had recently threatened to hold up an immigration
enforcement package and funding for Trump's ballroom if this fund
wasn't dropped. Monica Ricks Bloomberg Radio.
Kay Monica, thank you.
Republicans hold a narrow majority in the House, but they
face a tough mid term environment and we're in the
heart of primary season, Bloomberg Zamy Morris reports from Washington.
New Jersey voters are set to nominate candidates for both
chambers in a state primary, including the seventh congressional district
that could decide control of the US House. In California,
the primary season is ending as voters decide who will
run for governor and mayor of La. Republican gubernatorial candidate
Steve Hilton says He's honored to have Trump's endorsement.
When I'm governor, We'll have a cooperative relationship with the administration.
And Democratic gubernatorial candidate and former California Attorney General Javie
Visera rallied supporters in West Hollywood.
As governor, my job is to ensure that I am
protecting your rights.
Iowa, Montana, New Mexico, and South Dakota are also holding
primaries in Washington. Amy Moore as Bloomberg Radio.
Right, Amy, thank you on The race for New Jersey's
seventh district, which includes suburban towns, rolling farmland and one
of President Trump's golf clubs, is the state's highest profile primary.
Four Democrats are competing to take on Republican incumbent Tom
Caine Junior, who's been absent from Congress for months as
he deals with an unspecified medical issue, also being washed
as a Republican Senate primary and voters face four way
race between attorney Justin Murphy, surgeon Robert Lebovick's army veteran
Richard Tiboor, and former TV reporter Alex hen Ann. The
winner will face Democratic Senator Corey Booker, who is running
for a full third term.
Karen Famed short seller Andrew Left faces the possibility of
decades behind bars.
He's been found.
Guilty of securities fraud. Bloomberg's John Tucker joins US with
the latest.
John and Nathan, prosecutor say Left us explosive tweets about
dozens of companies to illegally influence their shares and make
a quick profit. They say earned more than twenty million
dollars from such trades. Life gained a huge online following
with his blunt commentary about major US companies as well
as the smaller stocks popular with retail traders. A federal
jury found him guilty on thirteen of seventeen counts. He'll
be sentence August thirty first, and faces more than twenty years.
The conviction may have a chilling impact on short sellers.
You know, York Im John Tucker, Bloomberg Radio.
All right, John, thank you. In company news, Alphabet is
putting together one of the largest equity deals of all
time to fund its new AI spending plans. Google's parent
company plans to raise eighty billion dollars through selling shares
both to the market and to Berkshire Hathaway Bloomberg Intelligences
Mandy Singh says the economics of the AI business have
pushed Alphabet to raise more cash.
Unlike a Microsoft or a Meta that have to buy
those chips from Nvidia and pay those you know, seventy
five percent growth margins, Alphabet is all using its own
chips and even in Tropic has trained its model and
uses TPUs even for inferencing. So from that perspective, Alphabet
is a competitor to an opening and end topic. It
is also a competitor to Nvidia on the chip side.
Bloomberg Intelligence is man Deep Singh says the Alphabet transactions
include a ten billion dollar deal with Berkshare and shares
of Alphabet. They're down two points seven percent this morning.
Well futures overall carender lower following eight straight days of
gains on Wall Street, but shares of Hewlett Packard Enterpriser
soaring more than twenty four percent. HPE is one of
the largest makers of computing equipment. It's outlook for annual
sales topped estimates. The company cited massive growth in AI
fueled demand for its servers and networking. Wu Jinho covers
HPE from Bloomberg Intelligence.
It's acceleration of growth.
If I look at what the applied guidance is going
into the fiscal third quarter, you know, it looks like
revenues are going to grow at twenty nine percent, and
then going into the fiscal fourth quarter, sales are going
to grow roughly about thirty percent.
So you know, it's just getting faster.
Wi Jinhell Bloomberg Intelligence says HPE's earnings follow blowout results
last week from competitor Dell Technologies.
Well on the flip side, Nathan in Europe, shares of
Abbavacs they're plunging almost thirty percent. The French biotech company
reported cancer cases in a crucial clinical trial for its
experimental inflammatory vowel disease drug. Time now for 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 and Michael Barr Michael Good Morning.
Good Morning Care and hundreds of demonstrators in central Kenya
marched Monday in protest of the US Abola quarantine center
near the Lakopea Airbase. It comes as the number of
abola cases continues to grow. This woman says no one,
including the President of Kenya, even took into account a
nearby primary school when quarantining any potentially infected persons.
Didn't even consider that as Carol, what about how what
happens and what goes around in the batrucharia or the
equipe at this company.
Reported cases in the affected areas are believed to be
more than a thousand, but Doctors without Borders says the
reality is that nobody knows the true scale and severity
of the outbreak. Authorities in Muscatine, Iwa say six people
were killed in shootings at three separate locations, all by
the same gunman. Police say the suspect, fifty two year
old Ryan Willis McFarlane, died by suicide. Muscatine Police chief
Tony kuys.
Our community is mourning the family and the friends of
the McFarland family, the Whitlow family, and the Harris families.
Chief Guy says the shooting apparently stem from a domestic
dispute and all victims are believed to be family members
of the deceased. Ukrainian authorities say Russia attack the country
with a barrage of missiles and drones overnight, killing at
least eleven people, injuring dozens and trapping others. The head
of Kiev's military administrations as at least four people were
killed in fifty eight were injured in Kiev alone. Ukrainian
President Vlodomiro Loznskis has born that recently the Russian preparing
to renewed attacks, have pressed allies for more air defense
missiles to counter Russia's missile attacks. Global News twenty four
hours a day and whenever you want it with Bloomberg
News Now Michael Barr and this is Bloomberg Herry.
Well, thanks Michael.
Time now for our Bloomberg Sports update, and for that
we bring in John stash Houerd.
Thanks Karen.
Big news in the NFL, none bigger than the Cleveland
Browns trading Miles Garrett to the La Rams. All Garrett
did last season was set the NFL record for sax
of the season with twenty three. The Browns and returngate
linebacker Jared Versus three draft picks as expected, wide receiver
aj Brown goes from Philadelphia to New England for two
draft picks. Forty four year old Serena Williams coming out
of a four year long retirement. She'll play doubles at
the upcoming grass Court tournament in England. It may lead
to her point at Wimbledon. That's a Bloomberg Sports update.
Stay with us.
More from Bloomberg Daybreak coming up after this.
Coast to coast on Bloomberg Radio, nationwide on Sirius Exam
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Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. The fighting between Israel and
Hesbola and Lebanon has emerged as a key sticking point
in peace negotiations between the US and Iran, and now
differing accounts of a call between President Trump and Israeli
Prime Minister Benjamin d'atanyahu are adding to the complications. Joining
us for more on this as Mark Champion, who covers
the Middle East for Bloomberg Opinion Mark, we saw a
post from President Trump saying he convinced Israel to turn
its troops around after his call with d'antan Yahoo, but
data Yaho's saying that Israel will continue with attacks if
Hesbola keeps going after his country. How should we read
all this this morning?
Good morning morning, Well, I mean, in essence, you know,
this is the third time when Israeli sees it in
its national interests to continue the war against Iran, has
intervened in Lebanon at a moment when the US in
Iran appeared to be approaching some kind of deal in
one case of ceasefire, in two cases now some you know,
sort of wider deal. So this is now the third
time each time they've hit Bear Route, which the Iranians
have made clear is a red line for them. And
again the Iranians have said that they are you know,
cutting off then their kind of back channel talks with
the United States, and you know, we're we're basically in
a three way negotiation in which you know, it's clear
that President Trump and the US want a way out
of the war. The Iranians are looking for the best
deal they can get, and Israel is very uncerta and
that that would be in its interests.
And I'm sure you saw the report this morning as
well from one of the semi official news agencies in
Iran that it's reviewing a final text of a memorandum
of understanding. How should we take this? Is it a
final offer from Iran? Is there room for further talks? Yeah,
we've been through this before.
The US submits proposals, the Iranians send them back. On
this occasion, you know, President Trump on Friday made some
amendments that he wanted to the texts that have been
given to him that went back to the Iranians. The
Iranians now looking at Theirs. In the meantime, another report
on an Iranian state agency said that they're cutting off talks.
I mean, this is a dance that we've been around
several times before. President Trump says, you know, sit back, relax,
it'll all end.
Well.
Markets seem to believe that that ultimately the only way
for this end to end is in some kind of
a deal. But you know, there's a lot of noise
that comes in between.
And you mentioned three way talks.
Does Israel need to be more directly involved in the
discussions between the US and iran Is.
Is that something that could happen. I think that's unlikely.
It's unlikely that the Iranians or the Israelis would be
willing to get into direct talks, you know, sort of
publicly acknowledged direct talks.
So I think that's somewhat unlikely.
But what we are likely to see is, you know,
what we have throughout, which is that you know, the
Iranians and the h and the Americans trying to come
to some kind of deal to reopen the straight of
Horne movees and the fighting and get back on track
for some you know, negotiation of the various files nuclear
Fund in particular that the US wants to see, you know, changed.
And and in the meantime, the Israelis, you know, are
very concerned that they will end up with a bad deal,
one that leaves the Iranians in power and able to
continue the various uses of pressure on Israel, either through
Lebanon and Hesbola or through Hamas in Gaza Board directly.
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