Trump: War To End Within 2-3 Weeks; Birthright Citizenship Hearing

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Good morning.
I'm Nathan Hager and I'm Alexis Christophers. Here are the
stories we're following today.
Alexis, we are seeing a relief rally in markets on
the prospect of the US ending the war with Iran soon.
President Trump says he could see the conflict ending in
two to three weeks as it enters its second month.
I had one.
Goal, they will have no nuclear weapon, and that goal
has been attained.
They will not have nuclear weapons.
But we're finishing the job, and I think within maybe
two weeks, maybe a couple of days longer to.
Do the job.
And remarks from the Oval Office heard live on Bloomberg Radio,
President Trump said it's still possible Iron reaches a deal
in that timeframe. Secretary of State Marco Rubio says the
US has had four objectives to destroy a run's offensive missiles,
destrot's missile production, destroy it's navy, and assure it never
has a nuclear weapon on or.
A head of schedule on each of those four objectives,
and we can see the finish line. It's not today,
it's not tomorrow, but it is coming. We are going
to get to the point where our military will have
achieved all of its objectives in this mission, and they're
doing so with extraordinary efficiency.
Secretary of State Rubio made those comments on Fox News.
But there's one goal that the Trump administration is leaving unsaid.
As we hear from Bloomberg Middle East correspondent Jumana Bersecci
in Dubai.
There was no real objective link to the reopening of
the streets, and in fact, when he was asked about it,
he said that they can leave it up to other
people and pointed to other countries such as the likes
of China who obviously benefit from the lion's share of
the energy products that pass through the streets, and that
it would sort of be something that can be dealt
with at a later stage, so not an explicit objective
per se anymore.
Bloomberg's Jumana Barsecci reports President Trump has expressed frustration with
US allies for not helping reopen the street. This morning,
the President told the UK's Telegraph newspaper, but he's strongly
considering pulling the US out of NATO after it failed
to join the war, telling the paper it's quote beyond consideration.
In the meantime, Iran continues to launch attax including at
an oil tanker, off cutter and cruise missiles targeting the
United Arab Emirates and a third US carrier group, the
USS George W. Bush, is on its way to the
Middle East. The White House as President Trump will deliver
a primetime address on the war tonight. That's set for
nine pm Wall Street Time. You could hear it live
here on Bloomberg Radio or watch on Bloomberg Television and
the Bloomberg Business app well.
Alexis oil is falling on the latest war developments, even
as the strait of hormones remains largely crolosed. Right now,
Brent is down one point four percent, trading at one
oh two forty nine a barrel. West Texas Intermediate's at
ninety nine thirty four. Steven Stepchinski leads Bloomberg's team covering
energy in Asia.
There is a new risk premium for oil going through
the Middle East and gas going through the Middle East.
That's going to have to be sort of figured out
going forward, because even if everything were to end, if
the straight uport moves were to open, if all the
infrastructure were to be repaired, there's still going to be
fears in the back of the minds of traders, buyers,
even sellers as to how safe everything is going forward,
What are the chances that something could flare up again,
What are the chances of insurance rates increasing as well?
Bloomberg Steven Stepchinsky says, while Brenton dipped under one hundred
dollars a barrel, it is still about thirty seven percent
higher than before the war began.
And Nathan, we are seeing stocks rally around the world
this morning on optimism the war will end. Stocks in
Japan soared more than five percent, the eurostocks fifty is
up more than two percent. And this follows yesterday is
Wall Street rally, which saw the S and P five
hundred climb two point nine percent the Nasdaq surge three
point eight percent. Laurence and Filippo is a senior investment
strategist at Bank of America.
I think this is a little bit of a relief
rally here. Now it's headlined to head yeah, if this
is really all clear, but I think this at least
gives us a sense of how the markets would react
when we really do find the end to this.
Bank of America senior investment strategist Laurence san Felippo. Despite
yesterday's rally, the S and P five hundred still fell
four point six percent in the first quarter, while the
nasjack dropped more than seven percent. Right now, we've got
S and P futures up, Nathan about four tenths of
one percent back.
In Washington, Alexis, the Supreme Court is set to hear
arguments this morning over the legality of President Trump's executive
order that ends automatic citizenship for children born to parents
who are in the US on a temporary visa or illegally.
Bloomberg Zamy Morris reports from the nation's capital.
President Trump's executive order stipulates the government will no longer
recognize birthright citizenship for children born to undocumented immigrants. The
move up ends more than a century of legal precedent.
The case Trump versus Barbara tests a long settled interpretation
of the Constitution that has governed citizenship for generations. The
ACLU arguing that the executive order violates the Fourteenth Amendment,
the Trump administration arguing that jurisdiction refers to political allegiance.
A final decision by the Supreme Court is expected in
late June or early July in Washington, Amy Morris, Bloomberg Radio.
Thanks Amy. President Trump says he will attend those Supreme
Court hearings this morning. In another development, the President has
signed an executive order intended to make it harder for
voters to cast mail in ballots. That's a practice used
by millions of Americans. The order requires a Homeland Security
Secretary to prepare a list of US citizens eligible to
vote in each state, and the Postal Service to only
send absentee ballots to voters on the approved list.
The cheating on mail in voting is legendary.
It's horrible what's gone on, and it's very clearly covered,
very very clearly.
So I think this will help a lot with elections.
We'd like to have voter ID, we'd like to have proof.
Of citizenship, and that'll be another subject for another time.
The move is likely to draw legal challenges, with legal
experts saying President Trump has virtually no authority to outlaw
voting by mail himself without a change in law.
Well, here's a move we haven't seen in more than
a half century. Alexis NASA is preparing to send astronauts
on a journey around the Moon. The Artemis two mission
will send four astronauts on a trip to the Moon
and back. If successful, it'll help clear the way for
astronauts to walk on the Moon again maybe two years time.
Bloomberg's Ed Ludlaw is in Florida for the launch.
This is the great next step in America's ambition to
have humans back on the Moon. In this mission, Optomist too,
they're basically doing a fly by or a fly around
the Moon, so they travel deep into space two hundred
and eighty five thousand miles, go around the Moon and
come back. But it's you know, it's the great dress
rehearsal for the technology essentially that's planned to get humankind
and driven by NASA America back to the Moon maybe
twenty twenty eight.
Bloomberg S Ed Ludlow notes, the launch window opens tonight
at six twenty four Wall Street time. We will have
live coverage of liftoff right here on Bloomberg Radio.
All right, very exciting. Now back here on Earth, specifically
Wall Street shares of Nike. They are plunging this morning,
more than nine percent. The retailer gave a surprisingly gloomy
outlook for the year ahead. Nike's facing headwinds around the globe,
including elevated inventories in Europe and the Middle East and
traffic disruption from the war.
Well, open AI's valuation keeps going up like a rocket Alexis.
It now stands at eight hundred and fifty two billion
dollars after the chat GPT maker completed a deal to
raise one hundred and twenty two billion from investors. The
bulk of the financing came from three big tech companies, Amazon, Nvidia,
and SoftBank.
And Anthropic inadvertently released source code for its popular claud
Ai agent. The leak of basic source code, the second
slip up in just a week, triggered a discussion in
the community around new revelations of how Anthropic's popular coding
agent works. Several experts are also raising concern about potential
security vulnerabilities and light of the unintended exposure.
And a programming not Alexis. Markets may close on Fridays,
but the world does not. And that's why we're bringing
you a live radio and TV show. It's brand new,
and it's called Bloomberg. This weekend looks beyond the daily
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Get Bloomberg This Weekend Live Saturdays and Sundays from seven
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Five ten on Wall Street Time Now for a look
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John Tucker. Good Morning, John, Good Morning.
A linsis the federal judge who's ordered the Trump administration
to suspend construction of the four hundred million dollar East
Wing Ballroom. Let's get the tales this morning from Bloomberg's
Monica Rix.
US District Judge Richard Leon in Washington granted a reservationist
group's requests for a preliminary injunction to halt the project.
He concluded that the National Trust for Historic Preservation is
likely to succeed on the merits of its claims because
no statue comes close to giving the President the authority
he claims to have. The Republican nominated judge said in
his order, the President of the United States is the
steward of the White House, not the owner. Crews have
long since torn down the East Wing, radically transforming the
look and feel of the historic grounds. Monica Ricks Bloomberg Radio.
In another case a win for public broadcasting, a federal
court ruled President Trump's anti media funding executive order is unlawful,
the court granting a permanent injunction for the government implementing
or enforcing the executive orders instructions to cease funding for
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Governor Ned Lahmann site data showing electricity consumption in New England,
who's expected to increase more than forty percent in the
next twenty years, and the Department of Agriculture will lead
dozens of American farm companies to the Philippines. It's a
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Good morning on Nathan Hager. Two weeks, maybe three. That's
the new timeline that President Trump has set out for
the US to end it's war with Iran after nearly
five weeks of conflict. More than five weeks, President says
he has largely achieved his goal of ensuring Tehran never
attains a nuclear weapon.
We've had Rashim change. We're dealing with people that are
much more rational, and it's amazing what we've done.
President Trump and Oval Office remarks heard live on Bloomberg
Radio and joining us from Dubai once again this morning
is Bloomberg Middle East correspondent Jumana Borsecci, the anchor of
Bloomberg Horizons. Jumana, good morning. We've heard the President say
that the US has largely achieved its goals. It raises
the question whether it has good morning.
Good morning, yes. So market's certainly reacting to the comments
coming through from President Trump. Last night, suggesting that there
is a timeframe after which they would start to wind
down their military operations. So he's suggesting two to three
weeks is how much longer they anticipate it's going to
take for them to fully achieve these military objectives. He
also said that the main objective, which is ensuring that
Iran doesn't go on to develop a nuclear weapon, has
largely been achieved as well. And I think you know
one other thing that really stood out from his comments
yesterday is there was no linkage whatsoever between there perhaps
anticipation that they're going to be winding down military operations
in the next few weeks versus a reopening of the
Strait of hormones, and he seemed to suggest that that
is going to be or become a broader global issue
as opposed to an issue or a term that the
US will insist on should Iran actually come to the
negotiating table. So we've sort of delinked in the last
twenty four hours the fate of the Strait from the
military operations that the US and Israel are conducting in Iran.
It speaks to fresh comments that we've heard from President
Trump in an interview just this morning with the UK's
Telegraph newspaper some of his strongest comments yet, saying that
he's strongly considering leaving NATO as well saying it's beyond consideration.
These are pretty forceful words from the President this morning.
Yep, that's right. He said he was disappointed in NATO,
that this was a test for NATO. They're going to
remember that they didn't stand that well, he will remember
that NATO didn't stand by the US. But I think
he's referring to the fact that several European nations have
said that the US will cannot be using there's some
of their air bases, the likes of Italy and Spain.
But at the same time, you know what many of
these European countries have said is they would look perhaps
to be part of a coalition to secure safe passage
in the Strait. But once the risk of vessels calms down,
and once there is sort of a de escalation in
terms of the ongoing military strikes and military attacks that
are going that are taking place in the region. So
it's not as though they've completely ruled it out. And
in fact, Mark Ruta, who enjoys a good relationship with
President Trump did suggest last week they're working on some
form of a multilateral, multinational solution or coalition vis a
vis the Strait, but asking NATAL members and asking European
allies to get involved militarily in the war is deemed
to be one step too far for them because it's
not a war that they started.
And you have to wonder whether that kind of effort
to secure the Strait could fit into the President's two
to three week window when we continue to see Iran
carrying out drone and missile attacks across the Middle East
even this morning.
Yeah, I think one of the big questions that still
remains unanswered coming out of President Trump's comments yesterday is
what this means for number one, ongoing Israel Israeli operations
as well. There has been it once again, an intensification
of attacks and counter attacks in the last forty eight hours.
And the second question is whether Iran would actually seize
those attacks on the Gulf States, So whether in this
case US protection or US security guarantees are still going
to be valid for some of those key Golf allies
in the region as well. So a lot of question
marks still. And then the other thing that I would
just remind people is there has been a significant amount
of troop deployment to the region. We spoke about this
earlier this week. The first marine expeditionary unit arrived on Friday,
Bloomberg reporting overnight that another aircraft carrier is also making
its way from California to the region as well. They're
expected to arrive in another two to three weeks. And
so you've got to think that the reason there is
a reason for this additional military armada being deployed to
the region, if they're not going to use it, then
is it for deterrence? And if it is for deterrence,
does that also benefit the Golf States as well?
And if the idea is that the objective of preventing
Iran from ever obtaining a nuclear weapon is large achieved,
the President hasn't said that it has definitively been achieved yet.
Could we see a possible ground action to try to
seize Iran's uranium That's something that's been spoken about as well.
Absolutely, and it didn't come up at all yesterday. There
was no mention at all of that enriched uranium stockpile.
And Iran is thought to be sitting on a stockpile
of north of one thousand pounds or four hundred kilograms
worth of this enriched uranium, and earlier reportings seemed to
suggest that if there were going to be a targeted
raid conducted by some of these new troops being deployed
to the region, one of the options would be to
send them inland to find to somehow be able to
extract this enriched uranium stockpile. Obviously a very risky operation
to undertake, but the fate as well of that enriched uranium,
I think is one that is going to hang over
the world over the next couple of weeks because it
all goes back to the premise from this war at
the very outset. You know, the whole objective, what Trump says,
is to ensure that the Irans don't go on to
develop a nuclear weapon. And so if they're still sitting
on this one thousand pounds worth of enriched uranium, how
is that pushing out the threats of their ability to
develop a nuclear weapons. So this is one of the
questions that's going to have to be resolved.
I think one of many questions still to be resolved.
Thank you for this, Jumana. We'll be checking back with
you throughout the morning. That is Jumana Bursecci the inkor
of Bloomberg Horizons with us this morning, once again from Dubai, Alexis.
Thanks Nathan and recapping some of our top stories this morning.
Stocks are rallying, Crude oil is sinking on optimism the
war could end soon. The S and P five hundred
so its biggest one day gain since last May. Yesterday,
on President Trump's talk of leaving the war, President Trump
plans to be in the court room as a Supreme
Court takes up his bid and birthright citizenship arguments on
the President's executive order are set for ten am Wall
Street time, and the countdown is on for NASA's first
manned moon mission in more than half a century. If
all goes well, lift off for the ten day fly
by for Artemis two is set for six twenty four
this evening from Cape Canavil, Florida. More on those stories
coming up on Bloomberg Daybreak, Nathan.
Okay, Alexis, thank you for a five twenty two Now
on Wall Street, we want to take a broader look
at the market impact from this more than a month
of war with Iran and the prospect of a resolution
if we do see the US stick to the president's
new timeframe of two to three weeks to end the conflict.
Joining us now is Jane Foley, head of FX Strategy
at Rabobank. Great to speak with you this morning, Jane.
Of course, we've seen the dollar really perform as a
big hedge during this conflict of flight to cash. What's
the impact if we do see a quick resolution to
this conflict?
Good morning, Good morning, it's a pleasure to be here. Well,
of course you've already seen it. Taste of that. Today
the market is all about optimism. Today. It's really focusing
on that two to three week timeline President Trump was
talking about yesterday, and that of course means that it's
been ignoring or all of those other factors that in
mine has just been talking about, the Uranian and the
rich Uranian for instance, around stockpiles, of that, the fact
that there's already or still overnight and yesterday a lot
of missiles in both directions, and so from that point
of view, today is optimism. But we don't know for
sure whether or not that's going to be the tone
that the market will be adopting, you know, through next
week or the week after for that, But as it
stands that the dollar really has backtracked today, we've seen
at the US dollar underperforming all other JTA currencies today,
which is really in reflection of the optimism that's also
been pushed through into stock markets and bomb markets too.
Do you see certain currencies benefiting more from an early
exit by the US.
You know, it's difficult to see that if you look
at the ones that have been the best performers today.
But what we have noticed, you know, over the last month,
is that aside from the theme of the dollar being
the safe haven of choice, the next theme that really
has pushed around FX rates has been this theme of well,
which central banks are going to be hiking the most,
and that leaves Sterling, you know, sort of next best
at the top of the G ten par because just
you know, six weeks or so ago, the market was
anticipating that the Bank of Veno could be cutting interest
rates twice more this year, and you know, since then
it was thinking, oh, there might be two or three
interest rate hikes, and that has meant that because of
the short term interest rate differentials, Sterling has done well.
But I think there's a real big butt to that
because The reason that the market was expecting at Sterling
to cut more this year was because excess capacity was
showing an employment rate was going up, and that means
that the UK is perhaps a more vulnerable position into
this crisis, because don't forget, even if we do get
a two to three week end to this conflict, or
at least the US withdrawing, there is going to still
be the damaging impacts of still higher energy prices than
we would have had anyway, and that's still going to
affect consumption through these economies. So I think there's still
a lot of dust that needs to settle down as
a market really works out exactly what the growth and
the inflation impact of this crisis will be.
Well, what do you see as the potential growth and
inflation impact. We've got just about a minute left.
Well, for instance, I think a country that's relatively well
insulated is Norway. Yes, the central bankers walk because yes,
there'll be some sort of inflationary impact, but don't forget,
it's an energy exporter, which is positive for it and
it eases. They're almost all renewable, so it's in a
relatively good position. Australia, maybe I think that one could
come back the Australian dollar as well.
This is Bloomberg Daybreak, your morning podcast on the stories
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Mm hmm