US-Iran Strikes Extend to 10th Day; Trump Vows 50% Tariff on Canadian Goods

Bloomberg Audio Studios, Podcasts, radio News.
Good morning, I'm Karen Moscow and I'm Alexis christopherus. Here
are the stories we're following today.
Alexis, we begin with the latest developments in the Middle East.
The US and Iran have exchanged strikes for a tenth
consecutive day. The escalation comes as mediators try to revive
a truce. Bloomberg's Zanda Wood said, the straight up ramous
is the focal point of the latest fighting.
Basically, the current situation that we've had since the signing
of the memorandum understanding in June is that both countries
are trying to control Hormus. Iman realizes that Hermus is
his main leverage and needs to keep control of it,
and the US is trying to weaken, event in control
over the Strait of Hormus and prevent or maybe even
get ready for future closures.
And that's where we are now.
Bloombergsanda Wood said. The Iran backed who these say they
would impose a maritime blockade on Saudi Arabia, putting at
risk the flow of millions of barrels that the kingdom
exports via the Red Sea.
And Karen Oil has surged about twenty percent since the
June seventeenth, the cord between the US and Iran unraveled,
and it could go even higher. Goldman sacks as Brent
could rally to more than one hundred and twenty dollars
a barrel by the fourth quarter if disruptions to the
Strait of Rimouz persist. Checking oil right now, we've got
Brent crude at about eighty eight to eighty a barrel,
down four tenths of a percent, WTI crewed down half
a percent at eighty two eighty one a barrel Alexis.
We're also keeping an eye on global trade. The Trump
administration is threatening to impose new tariffs on Canada. Bloombergh.
John Tucker joins us with more John, good morning.
Good morning Karen. It is a big escalation, fifty percent
terras on things like milk, plywood, and some very Canadian
the items like hockey equipment and beer. There will be
no exemptions for exporters shipping under the rules of the
existing North American trade pack, but the Trumpet dedllustration says
this is the result of Canada's unfair treatment of certain
US goods. It was said to take a fact in
thirty days, and this further strained relations with America's second
largest trading partner. Well last week, President Trump, you recall
threatened hire tariff to punish Canada for wildfire smoke, with
tarifs being applied under section three point thirty eight of
the nineteen thirty Tariff Act. That provision has never been
used before. I'm John Tucker, Bloomberg Radio.
All right, thanks John, and US UK relations are also
when the spotlight. This morning, President Trump has reached out
to new UK Prime Minister Andy Burnham. Let's go to
London now and get the very latest from Bloomberg's un
Potts ew in. Good Morning, Alexis and Karen.
Andy Burnham began his first full day in Number ten
Downing Street with an announcements on the cost of living
at tax cuts on energy bills. We're still awaiting details
of any changes to foreign policy, but the new UKPM
has already spoken to the leader of the country's most
important ally. We're told that Burnham rereshaw President Trump the
defense and secure he is at the top of his agenda.
The US President also backed himself an invitation for another
visit to the UK, this time for the g twenty
summit set to be held in Manchester, where Burnham was
mayor in London. I'm ewing pots Bloomberg.
Radio, Right you and thanks. Back here in the US,
Arizona Republicans are heading to the polls today to choose
a nominated challenge Democratic Governor Katie Hobbs in November. Bloomberg's
Amy Morris supports from Washington.
Two Arizona congressmen are vying for the Republican gubernatorial nomination.
Five term US Representative Andy Biggs is a former chair
of the House Freedom Caucus and has President Trump's backing.
Eight term US Representative David Schweikert is giving up his
competitive swing district seat after narrowly winning against strong Democratic
challenges in the past three elections. Now, voters across the
state will set the general election matchups for House seats
and state and local offices, but Arizona's governorship is a
top takeover opportunity for Republicans in Washington. Amy Morris Bloomber Radio.
Thanks Amy. Let's turn to the markets now, where tech
stocks are leading futures higher. Nasdaq futures are up about
one and a third percent. Yesterday was another volatile session
after rising as much as three quarters of a percent.
The S and P five hundred finished the day lower.
Lori Calvasina is the head of US equity strategy at
RBC Capital Markets.
Look, we have an eighty one fifty target over the
next twelve months. I'm so sort of a mid twenty
twenty seven number at this point, but we have never
said that it was going to get there in a
straight line, and so we have been looking for pullbacks
that would be frankly no worse than five to ten percent.
RBC Capital Markets. Lori Calvasena's S and P five hundred
price target is about ten percent above current levels.
Karen Alexis Taiwan Semiconductor is raising prices Nikeyasias reporting TSMC
will boost prices for advanced and mature chip production services
by up to ten percent and twenty twenty seven. TSMC
and of their chip makers are grappling with the soaring
cost of items employed in production, including materials, equipment and power, and.
The London Stock Exchange will introduce non stop trading next year.
The els SE will open a new venue outside of
its regular market hours, and a move to offer near
continuous trading in the working week. The new offering, which
will be called LSEE twenty four, will operate from five
pm until seven fifty am in London. It's expected to
be ready for client testing by the end of the year.
In company news, ALECSU say federal judge has granted a
request to pause the Paramount skuid danced takeover of Warner
Brothers Discovery for two weeks, saying it likely violates antitrust law.
California and eleven other states opposing the transaction won a
trial in April next year. Chris Paul Mary is covering
the story for Bloomberg.
This deal's already been improved by the Justice Department. It's
widely expected to get the blessing of regulators in Europe
this week. This puts all of that on hold, and
just to really further up the pressure, if this deal
doesn't close by the end of September, Paramount has to
pay Warner Brothers shareholders potentially hundreds of millions of dollars
a quarter in centrally late fees.
Bloomberg's Chris Paul Mary says Paramount argues the deal as
a head win for Hollywood and will provide much needed
competition against tech.
Giants and Karen. Visits to Taco Bell locations have plummeted
following a parasite outbreak that authorities linked to Lettuce sold
by one of the company's suppliers, Plaster AI says foot
traffic on Friday was about nineteen percent below the daily average.
The outbreak is also having a broader impact on the
restaurant industry, with chains like Chop, Chipotle, and Panera Bread
experiencing declines in traffic as well. Five oh seven 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, we're joined by Bloomberg's Michael Barr
Good Morning, Michael.
Good morning, and Lexis. In New York City, a former
US Army soldier has been arrested after igniting a fire
in front of a Manhattan federal building. Authorities say the suspect,
Andrew Arabaca, allegedly shot a pellet gun and set off fireworks.
The FBI says Arabaca made several anti government and anti
ice statements during the incident, and was described as an
anti American, anti government extremist. FBI New York Assistant Director
James barnicle.
He had two axes, a hammer, a machete, and three knives.
Three people suffered minor injuries. A fourth person has died.
As New York City deals with recent outbreak of Legionaire's
disease on Manhattan's Upper east Side, the Health Department says
seventy six people have been diagnosed with the disease, seven
remain hospitalized. Tropical Storm Berthup is slowly beginning to grow
around one hundred miles south of the Florida Coast. City
officials and New Orleans are beginning their preparations ahead of
a possible landfall Wednesday. The Orlean Sewage and Waterboard Executive
director Randy Hayman, we will continue to monitor conditions around
the clock and do everything we can to remain transparent
and provide information to you so that you can protect
yourself and your families. Officials throughout the region urging people
to stay out of the water as the storm could
produce high surf and dangerous rip currents. Intense heat across
eastern Texas is challenging the state grids all time power
demand record. Preliminary estimates from the Electric Reliability Console of
Texas show demand late Monday afternoon near the more than
eighty five point fifty gigawatts record set in August of
twenty twenty three. Global news twenty four hours a day
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I'm Michae Labarr and this is Bloomberg.
Thanks Michael all time now for our Bloomberg Sports Update,
and for that we bring in John stash Hour.
The Red Sox have been foundering all season. They fired
their one time World Series winning manager, Alex Cora. They
had not had a winning streak of more than three
games all season, and now suddenly the Red Sox have
won fourteen games in a row. They pulled out a
six to five win over Baltimore. If they win again tonight,
it ties the club record for longest winning street. There'll
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Stay with us. More from Bloomberg Day Break coming up after.
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Thank good morning. I'm Karen Moscow alongside Alexis Christopherish and
the US and Iran exchange strikes for a tenth consecutive day.
It comes as mediators work to revive at truce and
as the hoothy militant group in Yemen threatened shipping in
the Red Sea. Meanwhile, and the US Democratic Senators planned
to once again force a vote on an around war
powers resolution this week. And here's Senate Minority Leader Chuck Schumer.
On Thursday, Trump insisted to the nation that we're winning
the big, winning big in Iran and you'll see the
fruits of that labor very very shortly. But instead and said,
we saw three more brave American service members tragically lose
their will lives over the weekend because of Trump's reckless
war in Iran.
And that's an a Minority Leader Chuck Schumer. We want
to get the very latest now on the fighting with
Bloomberg Middle Aged Breaking News editor Dana Creage and Dana,
good morning. So we did say a tenth straight day
of strikes on Iran, what do we know about these
latest attacks from the US.
Good morning. Yes, So the US and Iran have continued
these attacks and tit for tad if you want the
US to strike in Iran, and Tehran is retaliating against
what it says are US interests US basis and places
like Kuwait, Badin, and Jordan, which has been the case
for the past several days, especially these strict countries. Baden
sounded alarm saying they intercepted aerial tacks. Jordan said it
intercepted drones and missiles, And of course we saw what
happened over the weekend in Kuwait saying a energy facility
was targeted there as well as a power desalination plant,
and that was of course in response to what Iran
said was US attacks all the same things, so they're
kind of keeping in in similar attacks. So whatever the
US attacks, then Aroun would attack in these different countries.
And yesterday, as you mentioned, we saw the mediators trying
to de escalate and bring the two back to perhaps
the status quote that existed even before the MU was signed.
US official that we have on background said that you know,
Trump is currently focused on punishing Iran for attacking ships
in the Strait and that the strikes will continue until
the president chooses a different course of action. But again
that US official said, the diplomatic efforts to end that
were continuing around s interior ministries in Pakistan today in
a Pakistan Kota out of course the two interior mediators
who are helping to de escalate, and they're the ones
who secured that MoU a few weeks ago. So still
not clear what the mediators have come to and whether
there is as we've seen reports of some ten days ceasefire.
This is very early to see and perhaps the two
the US and Iran are not you eager to immediately
cease fire right now, but to do this tit for
tat kind of like a managed conflict. So it's not
an all out war, but it's it's a managed conflict,
especially in Hormos well.
Also an issue, as we know, is the straight of
horror news horror moves. The UK Navy also reporting some
strikes on two vessels in the Strait, so that still
remains an active area as well, doesn't it exactly?
And you know we're seeing more tankers coming under attacks,
oil tankers even and consequently means traffic has declined significantly
there So in the week ending July nineteen, Hormos crossings
average seven tankers each day, and that's compared with sixteen
per day a week earlier. That's according to SMP Global
enter So we're seeing this, you know, Hormos is being
deserted even even further, and tankers are probably going to
look for some sort of assurance that they can pass
through and not come under attack from Iran.
So if the Hoothies imposed this maritime blockage on Saudi
Arabia which we heard about as well yesterday, and we're
having all of this going on still in the straight
of horror MOUs, what kind of impact could this have
on the oil market.
Of course, that will compound whatever we are in right
now and send oil prices soaring if they do disrupt
and if they do carry out the so called maritime
blockade on Saudi Arabia, that would translate to disrupting Saudi
shipping via Red Sea through Bab and Mendeb. They can
do that, as we've seen the Healthies do right in
since October seven, twenty twenty three, in support of you know,
the Milton Group Hamas So they did that and were
able to do that, and if that happens today or
this week, then you know, oil vis are going to
shoot up. They're going to soar, and that means Saudi
Arabia's main export route will be disrupted, and that's about
you know, four a million barrels a day will also
be caught out of the market. Saudi Arabit did say
that they will protect their own ships and condemn the
hopees for you know, those allegations and of course the
maritime blockade. But it remains to be seen how this
will play out. But of course the market is definitely
watching this very closely.
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