Report: US, Iran Close to War's End; Trump, China's Xi Prepare for Meeting

Bloomberg Audio Studios, Podcasts, Radio News.
Good morning, I'm Nathan Hager Bean, I'm John Tucker. Here
are these stories we're following today, John.
Let's begin with the latest from the Middle East, including
a major development in the war with Iran. Axios is
reporting the White House thinks it's getting close to a
deal to end the conflict. Bloomberg's Patrick Sykes reports from
Mistenbull that this memo would set a framework for more
detailed nuclear negotiations.
I think the optimistic thing to note in that is
that both sides would apparently agree to lift the restrictions
on the straightuform MOOSE, so we could see a kind
of return to normal for shipping. The caveat is that
it would be an initial step, It would be contingent
on the not being a resumption of hostilities, and it
would slightly kick the can down the road in terms
of the equally thorny issue of what happens to Iran's
nuclear prom but markets responding very positively, I think, mainly
to the hor moves potential.
In Blomberg's Patrick seichsads many of the terms laid out
in the memo would be contingent on a final agreement.
The news this morning comes after President Trump announced on
social media he would pause an effort to guide stranded
ships through the Strait of Horror moves in an attempt
to reach a deal. Hours earlier, Secretary of State Marco
Rubio declared the offensive phase of the warp over.
There's no shooting unless we're shot at first. Okay, we're
not attacking them, we're not. But if they are attacking us,
so they're attacking a ship, you need to respond to that.
You're not going to let some fast boat come up
on a ship and shoot it up.
Secretary of State Marco Rubio spoke at a White House
news conference. And as we monitor these developments, gas prices
keep rising. Triple A's nationwide average has topped four point
fifty a gallon for the first time since July twenty
twenty two. That is an all time high for this
time of year.
And Nathan Tayran's top diplomat is in Beijing for talks
with China, and this morning is China's foreign ministers urging
irond to keep negotiating in pursuit of a lasting truce
with the US. These discussions come just days before President
Trump is scheduled to arrive in China. President Trump says
he would discuss the war with China's leader Shishinping.
We're doing a lot of business with China and making
a lot of money. We're making a lot of money.
It's different than it used to be. But I'll be
talking about That'll be one subject. But he's been very
nice about this. You know, in all fairness, he gets
like sixty percent of his oil from Marmo's, and I
think he's been very respectful. We haven't been challenged by China,
and they don't challenge US.
Leaders are hast leaded to meet in Beijing on May
fourteenth and fifteenth.
And John Global trade is in focus this morning as well.
The US Ambassador to the European Union, Andy Poster, says
Washington will implement twenty five percent tariffs on cars and
trucks from the EU, in his words, relatively soon, if
the block does not swiftly ratify a long delayed trade deal.
What the President was saying, Look, this has gone on
long enough. We're done debating. We are negotiating. We cut
a deal. President Vonderlin and I cut a deal in July.
Our representatives put it to paper in August, we cut
the TIFFs retroactive to August one. On automobiles, you've done
nothing for nine months, so on auto's unless we see
some substantial progress, I think you probably should expect those
relatively soon.
The US Ambassador to the EU, Andy Puster, made those
comments to Bloomberg this morning. The E, you, meanwhile, is
frustrated over several moves by the President that it argues
undermines US commitments under the Pact, and the.
Clash between President Trump and Pope Leo flaring up again
ahead of a diplomatic mission by Secretary State Marco Rubio
to the Vatican. Speaking to reporters outside his residence near
Rome last night, the pottops that he would continue to
preach peace, but Poe pointed out that the Church has
spoken out for years against all nuclear weapons. That seems
to rebuff President Trump. Yesterday, the President spoke about the
issue with the Hugh Hewitt Show.
I hope would rather talk about the fact that it's
okay for Iran to have a nuclear weapon, and I
don't think that's very good. I think he's endangering a
lot of Catholics and a lot of people.
But I guess if it's up to the Pope.
He thinks it's just fine for Iran to have a
nuclear weapon.
A Secretary Rubio, a Catholic, is set to meet with
the Pope of the Vatican tomorrow morning.
Let's turn to domestic politics now, John, because primary elections
are in the books this morning. In Ohio with nearly
all votes counted, former presidential candidate vivek Ramaswami is the
Republican nominee for Ohio Governor. I want to say thank
you to our US President President Trump for his endorsement
in this campaign since day one. Vivek Ramaswami easily defeated
Casey Putsch in the GOP primary eighty two and a
half to seventeen and a half percent. He'll now face
Democrat Amy Acted in the November general election. She ran
unopposed in the race to succeed Republican Governor Mike DeWine
in a key race for Democrats' efforts to take control
of the US Senate in the midterms. Former Senator Shared
Brown is the runaway winner, beating ron Kin cad in
the Democratic primary eighty nine and a half to ten
and a half percent. Brown will face Republican John Hustead,
the former Ohio Lieutenant governor who was appointed to replace
jd Vance in the Senate when he became Vice president.
And then primary elections also held last night in Indiana,
and the races to watch there they were at the
state level. President Trump took aim at seven Republican state
senators who opposed the party's effer to redraw the congressional
map before Of the seven challengers that the President endorsed,
at least five to one, one incumbent prevailed. Now the
seventh race that is too close to call right now.
The President's allies spent at least eight point three million
dollars on these state Senate races. And at Michigan, Democrat
et Cedric Green defeated Republican Jason Tunney in a special
election that keeps Democrats in control of the state Senate
for the rest of Governor Gretchen Whitmer's term.
It turned back to markets now. John futures are surging
once again after yesterday's record setting day on Wall Street.
Chips are set for more gains after earnings from Advanced
micro Device as that stock is up nearly nineteen percent
in early trading. Let's get the details now from Bloomberg's
Alexis Christophers. Good morning, Alexis, Good morning Nathan.
A flood of spending on data centers helped boost AMD's
first quarter results and its second quarter sales forecast. The
upbeat outlook signals that it's s winning orders from the
biggest spenders on artificial intelligence computing. With data center customers
increasingly looking for alternatives to Nvidia. Shares of AMD, they've
been on a tear of The stock was up sixty
six percent heading into its earnings report, and it's on
track to reach a record high if those gains extend
into regular trading in New York. Alexis christoffers Bloomberg Radio, all.
Right, thanks Alexis, And the earnings continued today with more
than thirty companies in the S and P five hundred
reporting heading the list. Disney. Let's go to preview now
from Bloomberg to Tom Busby.
Now, this is Disney's first earnings report under new CEO
Josh Tomorrow, who's right now dealing with the FCC announcing
an early license review of Disney's owned and operated ABC stations.
That's over some off colored jokes from late night host
Jimmy Kimmel. Also, there's the collapse of a one billion
dollar deal with open Ai after a shutdown at Sora
video generating tool. But thanks to strength and it's Theme
Parks division and at its movie studios, which have a
new Star Wars film out later this month. Toy Story
five out in June. So Bloomberg consensus calls for revenue
of twenty four point eighty seven billion dollars on a
justin Ernix PLS share of a dollar fifty one. Tom
buzzby Bloomberg Radio.
It's five o eight on Wall Street. Time for a
look at some of the other stories making news in
New York and around the world. Hand for that, we're
joined by Bloomberg's Michael Barr. Michael, good morning, Good morning John.
We're learning of another close called at an airport, and
again in the New York area. A pylon on a
regional Delta Airlines flight reported a small plane getting too
close as the passenger jet approached JFK Airport on Monday.
ABC seven reports, according to air traffic control audio recordings,
and air traffic controller warned the pilot of the Delta
plane of a personal aircraft. The controllers said they were
not in contact with the small plane, and that the
plane was about five hundred feet above them. Thankfully, there
was no crash. This comes after Sunday's incident when a
United Passenger jet coming in for a landing at Newark
Airport flying so low over a turnpike that the plane
hit a truck and a light pole. The US Attorney
for Washington, DC, Jeanine Piro, revealed more of the tails
about the shooting on the National Mall Monday. Pierro, speaking
to ABC, says, undercover Secret Service agents and officers noticed
a suspect with what looked like a firearm near the
White House. She says, an agent briefly followed the suspect
and after making contact, he ran then opened fire on
the agents. Piero identified the suspect as Michael Marks, who
she says will be charged with assault against the federal officer.
People think that by coming to the nation's capital they
can really make put an emphasis on their political statement,
and I don't like that the nation's capital is being
used as the venue or the context within which people
want to practice their political violence.
A teenager who was standing by was shot, but has
been released from the hospital. A scare at Yellowstone National Park.
Two hikers mulled in a possible grizzly bear attack. Another hiker,
Craig Lherman, hearing of the calls for help from a distance,
eventually found them.
Continued up the trails, saw a bloody hat and a
watch that looked like it was torn off.
Lherman says that he was told both victims survived and
they're both recovering. That bear still on the loose. Global
News twenty four hours a day and whenever you want
it with Bloomberg News Now Michael Barr and this is
Bloomberg Park. Thanks Michael.
Time now for a Bloomberg Sports update. For that, we
bring in John stash Hour.
A couple of.
Wins by the home teams in round two series openers.
Detroit b Cleveland won eleven one oh one calves yet
to win on the road in these playoffs, and Oklahoma
City beat the Lakers one to eight ten ninety. OKC
had the best regular season record and unbeaten the playoffs.
The same is true of the Colorado Avalanche and the NHL.
A five to two win over Minnesota too nothing series lead.
They held the NHL Draft lottery Toronto will have the
first pick. The NFL on the verge of a labor
deal with the officials Union. They'll vote to ratify the
deal tomorrow. 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 Sirius XM,
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Bloomberg Business app. This is Bloomberg Daybreak.
Good morning on Nathan Hager. Following fast moving developments in
the Middle East. A day after putting it in an effects,
President Trump has put his efforts to guide stranded ships
through the Strait of Horror moves on hold. In this morning,
there reports the US and Iran maybe closing in on
a memo of understanding to end the more than two
months war. Joining us this morning from Istanbul for the
very latest is Bloomberg News Middle East Breaking News editor
Patrick Sikes. Patrick, we understand this as a report from Axios.
What are we hearing this morning morning?
Yes. The key things to mention now Iran that the
US believes it's closing in on a one page Memoran
memorandum understanding with the Ranians. That would end the war
and set a framework for further talks. I think the
optimistic thing to note in that is that both sides
would apparently agree to lift the restrictions on the straight
upforar Moose, so we could see a kind of return
to normal for shipping. I think the caveat is that
it would be an initial step, It would be contingent
on the not being a resumption of hostilities, and it
would slightly kick the can down the road in terms
of the equally thorny issue of what happens to Iran's
nuclear program. But for now, you mentioned in the intro
markets responding very positively, I think mainly to the whole
most potential.
From what we understand about this Axios report, Patrick, does
this sound similar to what we had been hearing that
the Iranians had put forward, Coming to this idea of
ending hostilities first and then talking about the nuclear piece
of this after another thirty days, I think it was.
Indeed, Yeah, a lot of it lines up. You know
that also this idea of a moratorium on uranium Richmond,
we know that that had been talked about in previous
rounds of negotiations even before the war. But also since
it began, the question is more of how long that
moratorium would last, would last and then also the US
lifting sanctions Axios is saying would be part of that
agreement as well. That has from the start been a
key demand for Iran. So yeah, I think if that
is the case, the Iranians would be happy with that,
with the caveat that for them, the deal breaker is
all about whether or not this is a lasting piece.
They want to see a resolution not just to the
conflict that began just over two months ago, but the
conflict that for them has been running way back to
the start of the Garza War.
In the meantime, of course, we saw the social media
post from President Donald Trump last night announcing that the
effort dubbed Project Freedom to guide ships through the Strait
of Horror Moves is on hold now to allow for
these discussions to move forward. Where does that leave the
situation in the Strait?
Yeah. Iran is of course framing that as a retreat
for the US and a proof that, in its own words,
it is firmly in control of the Strait. I think
for shipping it means that it just remains even even
more insecure. Right, we did see in the short time
that project was in place, we saw two US related
ships moving through it with that key US military support.
But we did see at the same time one ship
being targeted yesterday, reports of a French ship being targeted today.
So I think it just underlines that it still remains
very unsecure. That suspension will do nothing to reassure ship
owners in the region, let alone the crews who are
out there on the ground.
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