US Seizes Iranian Ship; Japan Tsunami Warning

Bloomberg Audio Studios, Podcasts, Radio News.
Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today.
Karen, there are new tensions between the US and Iran
less than forty eight hours before a fragile ceasefire is
set to run out.
VAK your engine room, VAK your engine room.
We're prepared to subject you to disabling fire.
US Central Command posted that video of the Navy firing
upon then seizing any Iran flagged cargo ship in the
Gulf of Oman. It's the first time the US has
taken over a vessel since the blockade of the Strait
of Hormos began last week. It's casting doubt on talks
that President Trump had promised would seal the deal with
Iran tomorrow night. Bloomberg's Jumana Borsecci has more from Dubai.
This is a situation we're in right now. From optimism
on Friday and perhaps some vessels preparing themselves for passing
through these street safely had to u turn and now
we're back to Stanstil again. Essentially, no vessels, no ships,
nothing is being passed through. And not only is there
concern about what instructions to get from either side, whether
it's the Iranian Revolutionary Guard or whether it's the US,
but also real concerns about safety given the mounting dangers involved.
Bloomberg's Juman Ebersetti reports President Trump is once again threatening
to destroy all of Iran's power plants and bridges if
talks fail. Iran's Foreign ministry says it still hasn't decided
if it's taking part. It says Iran's armed forces will
respond to any quote new adventure well Nathan.
The White House still says Vice President Jdvans will head
to Islama band to night to lead a second round
of talks along with Envoys Steve Whitcoff and Jared Kushner.
John Finer was chief of staff the former Secretary of St.
John Kerry when he negotiated the twenty fifteen nuclear deal
with Iran. He says talks with Taran are never going
to be easy.
Negotiations with the Iranians take time, they take patients, they
take expertise, and air dropping the Vice President into Pakistan.
For one day was never going to get the job done.
And former Trump Defense Secretary Mark Esper says it's unclear
whether the two sides will even talk this week.
The President's been saying that we're very very close to
a deal, that it's that they want it really badly.
And then what you hear coming out of Iran as
recently as last twenty four hours, where the lead negotiator,
Speaker Glibaf, has said, yes, progress was made in Islamabad
last week, but we are far from a significant There
are significant differences between our negotiating positions.
Mark Esper and John Finder, we're guests on Bloomberg this weekend.
Catch the show Saturdays and Sundays from seven am Eastern
on Bloomberg Radio and Television and the Bloomberg Business app.
Karen.
Stocks are falling in oil is rising on the latest
war developments. SMP futures are trading at seventy one twenty
nine right now. That's the drop of about a half percent.
US Texas Intermediate right now is up five point seven percent,
trading at eighty eight to sixty five. A barrel Brent
is up five percent at ninety five dollars.
Even.
Bloomberg Intelligence Senior commodity strategist Mike McGlone says oil prices
are in a new range that will eventually decrease, but
not for a while.
Given the recent news, is probably going to be up
a little bit. But I think oil is stuck in
a new range now between eighty and one hundred. If
we stay above one hundred, that breaks things. We're seeing
what happens when crudeil rallies at such high velocity. The
whole global economy is tilting downward. GDP estimates are lower.
Stays above one hundred, it'll make it go lower blow eighty.
I think eventually it'll get there, but not right now.
Bloomberg Intelligence Senior commodity strategist Mike McGlone says oil has
risen thirty three percent since the start of the war.
Now to a developing story Nathan, A tsunami warning has
been issued for Japan's northeast coast after a seven point
four earthquake hit the region, and Bloomberg's John Hirskovitz has
the latest from Tokyo.
We have the tsunami warning that's been issued for a
large parts of the northeast coast, especially around the Ewaatee area.
This was the part that was hit was devastated by
the twenty eleven tsunami. The warning is up for up
to three meters for areas of ewate.
And bloomerge down. Hrskobat says in twenty eleven, a magnitude
nine point zero earthquake and tsunami caused more than twenty
two thousand deaths and forced nearly half a million people
to flay their homes.
In Europe, Karen, Bulgaria's former president Roman Radif, has claimed
an overwhelming victory in his country's general election. His Progressive
Bulgaria Party, which opposes sanctions on Russia and military aid
for Ukraine, is headed for an outright majority in the
eighth general election in Bulgaria since twenty twenty one.
Well back here in the US, Nathan tragedy in Louisiana
and the deadliest mass shooting in the country in more
than two years, A father killed eight children, including seven
of his own, and shot two women in two homes
in Shreveport, Louisiana. Shreveport Police Corporal Chris Bordalan spoke to
CBS News about the situation.
He drove into a neighborhood and exited the vehicle, and
initial indication as.
He produced a handgun who returned fire ultimately killing the suspect.
Shreveport Police Corporal Chris Bordelan said the gunman was identified
as thirty one year old a Shamar Elkins. A cousin
said one of the women was married to the shooter
and they had been arguing about a separation and were
due in court. Today's turn to other news.
Now this morning, Karen, it is Patriots Day in Boston,
and that means in just a few hours, tens of
thousands of runners will pound the pavement for the Boston Marathon.
Bloomberg's Monica Ricks checked out the lineup.
More than thirty thousand runners from all over the world
we'll be running this year's Boston Marathon, and retired astronaut
Sonny Williams will be one of them. This will be
her second Boston Marathon, but her first on Earth. Back
in two thousand and seven, Williams ran it tethered to
a treadmill aboard the International Space Date and her time
wasn't bad. She did it in four hours and twenty
four minutes. Now today, Williams will also receive the annual
Patriots Award from the Boston Athletic Association for her inspiration
and service past recipients include former Boston mayor Marty Walsh,
former New England Patriots star Rob Gronkowski and Patriots owner
Robert Kraft, and Red Sox legend David Big Poppy or
Tease Monica Ricks Bloomberg Radio.
All right, Monica, thank you, Let's turn back to the
economy now. The Senate Banking Committee is slated to holiday
confirmation hearing tomorrow for President Trump's pick to be the
next chairman of the Federal Reserve. Bloomberg's Tom Busby has
more on what to look for well.
The hearing for former Federal Reserve Governor Kevin Walsh will
likely focus on his thoughts about where interest rates should be.
Look for discussions about maintaining the Fed's independence from President Trump.
Also Warsh's desired a free up capital with a sharp
rollback in the Fed's massive crisis era balance sheet, and
his support for rolling back the fed's requirements for bank
liquidity levels. Also for his financial filings that showed he's
worth at least one hundred and ninety two million dollars
maybe more, and that his wife Jane Lauder, a granddaughter
of the cosmetics firm founder Essay Lauder, could be worth billions.
Tom buzby Bloomberg Radio.
Time Now for look at some of other stories making
news in New York and around the world. And for
that we're joined by Bloomberg's Michael Barr Michael, Good Morning.
Good morning, Karen. Senate Minority Leader Chuck Schumer says he
is outraged over FIFA's plan to charge World Cup fans
one hundred and fifty dollars for train tickets. Mettlive Stadium
in New Jersey is hosting eight World Cup matches, including
the final, and the only way to get to the
stadium will be by taking a New Jersey Transit train
from Penn Station, New York. Schumer said NJ Transit is
paying forty eight million dollars to transport World Cup fans
while FIFA pays nothing.
So FIFA is forcing every fan onto public transit and
then saying you got to pay one hundred and fifty
dollars to help New Jersey Transit carry them.
What the hell? Who the hell do they think they are.
Senator Schumer says FIFA should cover the cost of getting
fans to the World Cup at Medlife Stadium. New York
mayors are on Mamdanie Hail to proposed annual surcharge on
some owners of second homes in the city as an
important step in his pledge to raise taxes on the wealthy.
Mamdannie on NBC's Meet the Press Sunday, says he believes
in the importance of taxing the rich.
I tell them, unless they make more than a million
dollars a year, or own some of the most profitable
corporations in our city, or have a second home that's
worth more than five million dollars, than these are not
taxes that apply to them. And what I've sought to
make this city the most expensive in the United States
of America is one that's affordable for the people who
have been priced out of it.
NBC's Meet the Press is heard Sundays on Bloomberg. The
first American pot Iff, Pope Leo, is wrapping up his
eleven day landmark papal trip to Africa. Throughout it, he
has made a consistent call for peace and unity. More
than a fifth of the world's Catholics are in Africa
and a driving force our young people. Pope Leo is
expected to meet with the Catholic leaders in Angola before
he heads to the Equatorial Guinea on Tuesday for the
final stop in his papal trip. Global news twenty four
hours a day and whenever you want it with Bloomberg
News Now Michael Barr and this is Bloomberg Karen.
Thanks Michael.
Time now for our Bloomberg Sports update, and for that
we bring in John stash Hour.
Thanks Dared.
One surprise in the NBA playoffs, eighth seed of Orlando
won at top seeded Detroit one twelve to one oh
one in Game one of that series. The Buffalo Sabers
first Stanley Cup playoff game in fifteen years. They trailed
the Bruins two nothing with eight minutes ago. The scored
four goals in seven minutes. The Sabers won four to three.
The Cubs beat the Mets two to one, and ten
means the Mets have lost eleven games in a row.
The Heritage Golf in Hilton Head went to a playoff
in Matt Fitzpatrick burnied on the first extra hole to
beat Scottie Scheffler. That's your Bloomberg Sports update.
Stay with us. More from Bloomberg day Break coming up
after this.
Coast to Coast on Bloomberg Radio Nationwide on Sirius XM
and around the world on Bloomberg dot Com and the
Bloomberg Business Appum. This is Bloomberg Daybreak.
Good morning. I'm Nathan Hager, monitoring developing news off the
coast of northeast Japan, where a powerful earthquake has sparked
tsunami warnings and a part of the country devastated by
shaking and waves more than a decade ago. Joining us
from Tokyo is Bloomberg's John Hirskowitz. John, Good morning, What
do we know about this quake? What's the latest.
Short The quake came in at a magnitude of seven
point five, It hit offshore, and right now the tsunami
wave is coming in in various parts of Japan. The
warning was up to three meters this is about ten
feet one story of a building. But the actual tsunami
that's come ashore, the highest point so far we've seen
is at eighty centimeters, so that's good news. It's not
as big so far as the warning has been up
and down the coasts. There are sea walls which should
contain the tsunami as it comes in, but the warning
is still in effect. So we've seen this. We've seen
the prime minister. The Meteorological Agency warned people to get
to higher ground. We've seen trains being service being delayed
cut off. The Meteorological Agency of Japan has warned that
we could see similar strong quakes for about a week
in this area. So the warning is still up there.
For the tsunami, the warning is still up for three meters,
but so far what's coming shore has the highest point
has been eighty centimeters in Kouji Inywate. This is the
place that was devastated in twenty eleven by the earthquake tsunami.
Lower down the coast is Fukushima where the nuclear plant
had the meltdown disaster. So so far, no abnormalities or
any power plants, so everything it's of concern, but so
far nothing devastating as we saw in twenty eleven.
I think you were there in twenty eleven, weren't you
in that awful Fukushima disaster. It sounds as though things
might not be as bad as they were then, but
put it into that context for us.
Sure, I went a few days after the tsunami hit
in twenty eleven up and down the coast and it
was just absolute devastation and you could see you're driving
on a road and there is a tanker in the
middle of the road. Everything was just stirred up. Your
GPS didn't work because the roads no longer existed over
a block. There were devastating fires that came out of
the tsunami, and it was just absolute devastation for so
many for all up and down the cost. After that,
Japan rebuilt. I went back there a few years ago.
There are sea walls in place at a much higher level.
The power plants have had various furnishings that make them
safer than before. The people are concerned. When the warning
comes in, people get to high ground as quickly as possible.
Is it's a serious matter when the waves may be
coming in not as high as predicted, but the devastation
that was there before. I think there was up to
twenty thousand people killed or missing from that tsunami, so
it is a huge concern. So far, things are serious,
but we're not at anywhere near the level that we
saw in twenty eleven.
Okay, So this earthquake was in the northeast or off
the northeast coast of Japan. You're in Tokyo to the southeast,
just quickly, John, did you feel it from where you are?
Yeah, I'm in the Bloomberg office. It's on the twenty
second serve of a building. The building was swaying a bit.
The elevators were cut off for maybe about twenty thirty minutes,
so we felt it here. The Japan uses an intensity
scale which measures the shaking on the ground. Seven is
the highest. This is like absolute devastation. In Iwate Prefecture,
it came in at about a five. In Tokyo it
was a three, which meant that we could feel it,
but no real damage to structures. Iwate, they may see
some damage structures, but not at the highest level, which
would be a seven. So magnitude and intensity. Japan uses
two scales. Earthquake at seven point five magnitude. The intensity
was about a five at the worst.
Okay, Well, appreciate you coming on with us, John and
bringing us the very latest on what is happening in
Japan this morning evening in Japan. That's Bloomberg's John Hirskovitz
joining us this morning of the earthquake from Tokyo this morning.
But now we want to turn to the major story,
and of course that is the ceasefire between the US
and Iran with less than forty eight hours until it's
due to expire, there is new uncertainty about where the
war goes from here after the US seized an Iran
backed cargo ship over the weekend, joining US from Dubai.
Now is Bloomberg Middle East correspondent Jumana Bursecci, the anchor
of Bloomberg Horizons. And of course, before these latest developments
over the weekend, Jumana, there were a lot of hopes
that there were going to be talks as soon as
tomorrow between the US and Iran. Where do things stand now?
Good morning, Absolutely, good morning. There's a lot to wait
through from this weekend. You know, a lot of optimism
on Friday afternoon after a series of posts that President
Chump put up almost suggesting that the war was over.
But then of course things turned around over the course
of the weekend and this morning, as you were just
talking about, we know that Sancom actually seized an Iranian
linked vessel in implementation of their own blockade that is
still going throughout the Strait of Homos, so the street
is still effectively shot. But at the same time, the
US side has indicated that they plan to go ahead
with these talks in Islamabad. The plan is for Jdevans
once again to lead the discussions alongside Steve Witkoff and
Jared Kushner, and that they are expected to leave the
US tonight, so tonight US time, landing in Islamabad tomorrow
morning for discussions. However, the Iranian side are being COI
we just don't know at this point whether they plan
on attending. We heard from the Iranian Form ministry spokesperson
about an hour ago and he said no final decision
had been made. Over the course of the weekend. The
speaker of the parliament, Mahma Galimov, did suggest that the
progress had been made, but there was still a lot
of daylight between the two sides. And then more recently
this morning, the Iranian President Paseshkian said there is no
appetite for a return to fighting and that all rational
and diplomatic revenues should be used to reduce tensions. So
you can piece all the messaging together, which suggests that
there is perhaps still hope that the Iranian delegation show
up to these meetings. They just haven't confirmed it yet.
Well, and there's still a question, isn't there about whether
the ceasefire is still in effect. We've heard some commentary
from the Iranian side that they consider the seizure of
this cargo ship of potential violation.
Yes, and I think that was the big question as
we walked in this morning, just exactly how the Iranians
would respond and the IRGC, which is of course the
military wing, and earlier I was referencing a lot of
comments from the official side of around the Iranian delegation.
But the IRGC are livid that the US actually went
ahead and seized the vessel. They vowed to retaliate. So far,
we have not seen that retaliation. Remains to be seen
what it's going to look like and if that would
really amount to another military estillation or a repeat of
some of the hostilities that we saw a couple of
weeks ago. One other thing that I would just say
as well, as President Trump also suggested that once again,
if there is no breakthrough this time around, he's threatening
to once again attack power plants and a key civilian
infrastructure in Iran. So sort of a repeat of the
threat that we had a couple of weeks ago, and
unlikely that that has gone down well either in Iran.
So they have to make a decision between the two
factions here, the military wing who want to respond to
the US provocations, and then the diplomatic wing who have
been representing Iran at these talks that seem to indicate
that they want to continue and go down the path
of diplomacy as opposed to further military escalation.
That raises another overriding question that's been hovering over this
for so many weeks, if not months, as to which
of those wings speaks for the Iranian government as a whole.
But even if these talks were to get underway tomorrow
in Islamabad Jumana, the two sides are still very far
apart on the fundamental issues.
Aren't they.
Yeah. And the fundamental issue, of course, is not just
the strait. And by the way, the straight reopening was
one of the key features of the ceasefire that was
supposed to be implemented a couple of weeks ago, and
the strait never fully reopened. I should just remind everybody,
But the fundamental issue here is nuclear ambition, and of course,
you know, the US are pushing for maximum concessions out
of the Iranian side, and over the course of the weekend,
once again, the Iranian State TV repeated that what the
US are asking for is too maximalist for them, and
of notes, here is number one their nuclear ambition in
terms of the amount of enrichment that the US will
allow for them to continue with, and the Iranian position
has always been that they should be allowed for a
low level of uranium enrichment for civilian purposes. And then
the second big question is what happens that fate of
the enriched stockpile that they're already sitting on, which is
more than four hundred kilos worth or one thousand pounds.
And again they've repeated the message over the weekends that
there are no plans to transfer it outside the country.
There are multiple media reports suggesting that a deal had
been struck. And then the final point is what the
US plan to do with those sanctions and whether some
deal would entail a lifting of sanctions or unfreezing Iranian
assets around the world. At this point we don't know,
but we do have a better understanding of what the
framework of the discussion is.
This is Bloomberg Daybreak, your morning podcast on the stories
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