Trump Talks Up Iran Diplomacy; Chip Rout Deepens on China Competition

Bloomberg Audio Studios, Podcasts, radio News.
Good morning, I'm Karen Moscow and I'm Alexis Christophers. Here
are the stories we're following today, Alexis.
We began with the latest on the war in Iran.
President Trump said the US and Iran are holding talks
to end their conflict, but warned military strikes will resume.
If negotiations fail.
It follows the US holding off attacks on Iran for
three straight days. Meanwhile, Iran suspended retaliatory strikes on golf countries.
Speaking to reporters on board Air Force One, the President
claims talks are only happening because the US has been
hitting them very hard.
They want to meet, and we're meeting. We'll see what happens.
Is the chance we could make a deal. Without what
we did, they wouldn't be talking to us. They requested
a meeting through their surrogates and directly, and we're meeting,
and you know, good things can happen. I guess.
Despite President Trump's optimism, Around's Foreign Ministry says messages maybe
passed through mediators, but then no formal talks with the
US are currently taking place. Meanwhile, sources tell Bloomberg that
Oman and Iran are trying to reach an agreement to
restart shipping through the Strait of Hormoz and Karen.
President Trump's comments come as Israeli Prime Minister Benjamin Netanyahu
readies to visit the nation's capital today. Netanyah, who spoke
to reporters through an interpreter before his departure to the US.
We will discuss all the issues on the agenda, foremost
among them Iran. Of course, our goal is to preserve
our security and also to expand the circle of peace
around US.
Is really Prime Minister of Benjamin Netanyaho. We'll meet with
President Trump at eleven am Wall Street time, according to
the White House schedule, and he plans to press the
President to keep a quote constant watch on Iran's nuclear
program and Alexis.
With the war extending into its fifth month and the
midterm elections less than one hundred days away, Democrats continue
to hammer their president and on the war in the
Middle East. Democratic House Minority Leader HOCKEYM. Jeffries told Bloomberg
yesterday that the president has no exit strategy in Iran.
Well, we're going to continue to aggressively push the effort
to push back against this reckless war of choice. It's
deeply unpopular with the American people, and we have to
sustain the intensity. Donald Trump has unfortunately got us involved
in this situation without any plan, any objective, any clear
exit strategy, and now the American people are clearly paying
the price.
Democratic House Minority Leader HOCKEM Jeffrey speaking with our Joe
Matthew on Bloomberg's Balance of Power. Get the full conversation
on the Bloomberg Video Hub at Bloomberg dot com and
on the Bloomberg Business app and elsewhere.
In politics, a special election today and Georgia will decide
who replaces the late Democratic Representative David Scott in Georgia's
thirteenth district. Bloomberg's Amy Morris reports from Washington.
Six candidates are competing for the seat, and the winner
will serve out the remaining few months of the late
Senator David Scott's current term. That could have an immediate
impact on the ballots of power in the US House,
where Republicans have a thin majority. Under Georgia law, the
four Democrats and two Republicans will appear on the same ballot,
and any of them could secure the seat. But if
no candidate wins a majority, there will be a special
runoff election on August twenty fifth with the top two
vote getters. In Washington, Amy Morris Bloomberg Radio.
Heard Amy thank you.
While South Dakota is also holding elections today, Republicans will
decide in a primary runoff whether to nominate Governor Larry
Rodin for a full term or to instead tap businessman
Toby Dodin to represent the party on the ballot in November.
The winner of the runoff will under the general election
against a Democratic former state Senator Dan Ahlers, with a
significant advantage in the reliably republican state that has not
had a democratic governor since the nineteen seventies.
Well Karen, from politics to the chip sell off. Weighing
down markets this morning, just as some of the Mags
seven are getting ready to report earnings, Bloomberg's John Tucker
joins US now with the very latest.
Good morning, John and Alexis you can.
beIN the pin of sell off for now. On competition
from China, it looks like they're making progress and developing
advanced chips. Skittish investors have dumped many of this year's
biggest AI winners. Toss into the mix. The fears over
circular spending in vidios seven hundred and fifty billion dollars
in AI infrastructure deals. That is, investors worrying about debt levels.
For anybody thinking about buying the dip, a word of
caution from Steve Sosnik at Interactive Brokers.
Even though that strategy has worked more or less perfectly
for the better part of several years, it doesn't always work,
and it doesn't work in every stock.
Every time Asia's benchmark headed for a correction, traders rotating
into consumer stocks and other sectors. All this happening as
we get earnings this week from Microsoft, Meta, Apple, and
Amazon in New York. Come John Tucker, Bloomberg Radio, Ry.
John, thank you. All the selloff comes.
With Skhiineks poised for a profit surge. It's expected to
report a nearly sevenfold leap in operating income in the
June quarter, help by soaring demand and prices for its
high bandwidth memory chips used inside AI data centers. Still,
the South Korean shipmaker will announce its results as questions
persist around the massive spending and debt raised to build
data centers across the globe.
To support AI services.
The company joined elon Musk SpaceX in being among the
year's largest US offerings to trade below, where shares were
sold for the first time publicly and Karen.
In Taiwan, prosecutors have detained an Nvidia employee as part
of a probe into the alleged smuggling of AI chips
into China. Local investigators search the home and office of
the staffer, and the courts granted prosecutor's request to detain
the person on allegations of forgery and breach of trust.
The case is one of at least eight probes into
Nvidia chips smuggling across four urisdictions as officials cracked down
on a black market problem.
Well Le says the markets are also following a slew
of central bank news this week. We get rat decisions
late in the week from the Bank of England and
the Bank of Japan, but before that here in the
US we get the key decision from the Federal Reserve tomorrow.
Stefeld chief economist Lindsay Peg told Bloomberg yesterday that if
Chairman Kevin Warsh and the FOMC raise rates at the
July meeting, it might not be their less move higher.
If there's a lack of communication and the FED simply
comes out makes that aggressive move higher without any guidance,
any forward guidance for what we can expect going forward.
I think the market would anticipate that the Fed has
shifted their line of thinking to the prospect that inflation
is rising, it's not under control, and if that's the case,
it would be unlikely that one rate hike would quell
that concern.
Stepheil's Lindsay Pea says that she expects policy to remain
on hold for the next several meetings. Stay with Bloomberg
for full coverage of the meeting and Sharewash's news conference
on a special edition of Bloomberg Surveillance that Fed decides,
That's tomorrow one thirty pm Wall Street Time on Bloomberg Radio,
Bloomberg Television, and the Bloomberg Business app.
And Karen Over In Europe, Berkley's shares fell at the
open despite reporting better than expected second quarter earnings. The
British lenders equities traders beat analyst estimates, and the bank
raised its full year income outlook. The CEO told Bloomberg
the bank is seeing strong performance across its businesses.
Equities on our thirty percent of Barclays. And remember this
was the house that fixed and come built, and so
the diversification we're seeing in the business, the strength we
are seeing in our business is something that we are
truly happy about.
The comments from Barkley CEO not enough to reassure investors.
Markets appear to be looking for an even stronger performance
from Berkleys, following blockbuster trading results from Wall Street Banks
earlier this month.
And finally in sports Alexis.
Sources tell Bloomberg federal agencies the mobile phone and computer
of laws Than Angeles Dodgers owner Mark Walter last September
as part of a wide ranging prom and at the
financial dealing to the billionaire's businesses. The FBI reportedly carried
a search warrant on board a private plane at a
Chicago airport where Walter was traveling. The FBI Chicago Field
Office confirmed that it executed a court authorized search for
a mobile phone and laptop on an aircraft at Midway
International Airport on September eighteenth, last year, but declined to
comment further. Bloomberg was reported that federal prosecutors in Manhattan
have been investigating potential financial improprieties at two of Walter's
insurance companies and at Guggenheim Partner's, the financial firm that
Walters leads.
Five point ten on Wall Street Time Now for a
look at some of the other stories making news in
New York and around the world. For that were joined
by Bloomberg's Michael Bark Good morning, Michael.
Good morning, Alexis. A floodwatch starts this morning for several
parts of the Northeast, including New York and New Jersey.
Bloomberg Meeting Religius Craigall has the latest.
Yesterday, we had major flooding in a few areas across
New Jersey. Again today, flash flooding is likely over a
larger swath of the New York City tri state region,
and actually showers and heavy thunderstorms are possible anywhere up
and down I ninety five from Washington to Boston. But
I'm thinking the greatest threat and most challenging whether will
run from about the Philadelphia Wilmington area up past New
York City and then over western sections of Connecticut and Massachusetts,
in other words, mainly west of I ninety one in
the Connecticut River.
Bloomberg Media Religious Craig Allen. Emotional opening statements began in
the trial of the Massachusetts woman accused of killing her
young children. Lindsey Clancy, pleaded not guilty through an insanity defense.
Her lawyer argues she was experiencing postpartum depression. Her husband,
Patrick Clancy, took the stand Monday about his three children
found dead in the basement of their Duxbury home in
twenty twenty three. The children were aged five, three and
eight months. It has been about six months since the
mother of Savannah Guthrie was believe kidnapped from her Arizona home.
The Today Show host released a new video pleading for
information about her mother, eighty four year old Nancy Guthrie.
I truly believe it is never too late to do
the right thing.
Help us bring this situation to an end.
The Pima County Sheriff's office said that the investigation remains
active and ongoing. New York mayors around memm Donnie says
five city owned grocery stores will provide a discount on produce, meat, bread,
and milk once a month.
Our five city run grocery stores will set prices for
this core set of goods at thirty percent below typical
retail prices, no exceptions, no gimmicks. The savings will last
for the entire month.
Speaking in Brooklyn Monday, Mayor mem Donnie and the city's
Economic Development Corporation say the move could save shoppers about
ninety dollars a month, but not everyone thinks ma'm donnie's
plan is a good idea. Shark tankster Kevin O'Leary said
it would guarantee that the stories will lose money on
every sale and that taxpayers would ultimately bear the cost.
Global News twenty four hours a day and whenever you
want it with the Bloomberg News. Now, I'm Michael Barr,
and this is Bloomberg.
Thanks Michael.
Time now for our Bloomberg Sports update, and for that
we bring in John stash Hour.
NFL training camps are opening up, and the Indianapolis Cols
proclaimed their starting quarterback Daniel Jones to be fully cleared
from last year's achilles injury. Seemed as true of Patrick
Mahomes as he returns for the Chiefs from a torn
acl Washington fired assistant coach Ben Steele after a recent DUI.
University of North Carolina general manager Mike Lombardi, who has
a long relationship with head coach Bill Belichick put on
paid leave after a human resources complaint. The Cubs have
released veteran pitcher Jamison Tayone. 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 Serious Exam
and around the world on Bloomberg dot Com and the
Bloomberg Business app.
This is Bloomberg Daybreak, and good morning.
I'm Karen Moscow alongside Alexis CHRISTOPHERUS President Trump is saying
the US and I run are engaged in diplomatic talks
to end the Middle East conflict, but we're on the
two sides to return to fighting if negotiations did not
yield a deal, and the presidents spoke in Detroit yesterday.
We destroyed most of their drone manufacturing capability, their missile
manufacturing capability, and right now they're talking to us about
making a deal. But if we didn't do it tough,
there would be no talk.
Well for the latest now on the war, We're joined
now by Stuart Livingston Wallace, head of Bloomberg's Middle East coverage,
and Stuart, good morning again.
So what do we know about these talks?
Yeah, good morning, Karen. I mean, the churce of it is,
we don't entirely sure what he's talking about, so it
could be any one of a number of things. We
know that there are some sort of established mediators that
have been going back and forth, so specifically Pakistan and Katar,
and of course there are others as well because so
many countries have been involved in this conflict. Or alternatively,
he may be referring to at least one leg of
these negotiations, which is over the control overhaor moves. So
that is a series of talks that we know is
going on between Iran and Iman, the two countries on
either side of the strait. We're not quite sure what
exactly is being discussed. You know, there are various permutations here.
I think for it to be acceptable to a wider
community has to hit to two main points, which is
number one, Iran can't have sole control in otherwise it
has to be either a joint authority with Oman or
some sort of dual track system of approvals. And secondly
that it can't be used as a means of extracting
vast amounts of money from the shipping community, So maybe
something a little closer to what we see in the
Strait of Malaca or the Darta Neils and Bosorus in Turkey,
where there are fees of sorts, but they're reasonably low
and they're sort of tied to things like environmental maintenance,
you know, pilot that kind of thing. So that's what
seems to be happening at the moment. But again, most
of this is taking place behind closed doors, and we
don't have a great deal of visibility over the progress.
And it's actually really interesting because there does seem to
be a lot of focus on the Strait of Horror
moves and those discussions. But we know that President Trump
is meeting today with Israeli Prime Minister Benjamin Netanyahu and
he really reiterated the fact that Iran should never have
the capability to build a nuclear weapon when speaking the
other day. So what does this mean, What is AD's
stake for their discussions today And while that will he
try to get a more focused discussion on this when
it comes to the war with Iran.
Yeah, I mean, again, we don't know exactly what's going
to be discussed. We can make some presumptions though, which
you know, again it's not used to anyone that Israel,
amongst others, is very concerned about Iran developing a nuclear
weapon or having the capability to do so at runs
of short notis you know that. I think that's been
front and center of what certainly there is Verny Prime
Minister has been saying publicly for many, many years, so
you would imagine that would be part of it. You
would also think though, that there'll be some sort of
discussion around Iran's missile program, which again is perceived certainly
by Israel and obviously now many other countries in the region,
has an ongoing threat to safety. And then finally at
support for proxy forces, which you know you're seeing today
disrupting traffic on the other side of the peninsula and
Baba Mendem and there I'm referring to the hooties that
do receive support in one form or another from Iran,
but they're not the only ones. You have militias in Iraq,
you have as below, you have a mass and others,
so you would imagine those will be the sort of
the main topic that they'll be discussing. But again we'll
see what comes out after those talks. As you said
later today.
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