US at Odds With Allies Over Hormuz, G7 Summit in France Begins

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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
are the stories we're following today.
Karen, we begin with the latest from the G seven
Leader summit in Evion, France. President Trump has arrived at
the gathering touting an interim deal with Iran to reopen
the Strait of horror moves. The President says, the agreement
is already having an impact the neils.
O side, and these trainers already partially opened. As you know,
they're doing a little hunting for a couple of minds
they've already found. But it's essentially ships are starting to
go out.
Now.
On Friday, it'll be completely opened.
President Trump spoke alongside French President Emanuel Mcrowe at the
G seven. Vice President JD. Vance made the rounds on
television to defend the deal.
The Iranians don't get a dime unless they behave and
change their behavior. And this means that a rain will
never have a nuclear weapons.
That's what we did this at a dime.
Did they ever get an American dime, a taxpayer dollar?
No?
So, number one, first of all, they never get a
dime of America taxpayer money, ever, full stop, not even close.
Vice President JD. Van spoke with Fox News host Sean Hannity.
He's expected to represent the US when both sides signed
the deal on Friday.
Well, Nathan. Despite those assurances from President Trump and Vice
President Vance, European leaders are sounding less optimistic about this
Straight of Horror Moves reopening by Friday. Bloomberg Chief Europe
correspondent Oliver Crook is covering the G seven in Evyon.
There's also this effort by European leaders and their militaries
to potentially have this d mining mission that would go
to the Straight of Horror Moves, but they say they
can really only do that once they understand this peace
deal and once there is, you know, an actually durable
peace deal. There's also a real question about whether or
not some of these leaders, like Georgia Maloney, has suggested
that she doesn't really want to participate in anything until
there's a full deal that also includes Lebanon. So these
are some of the concerns I think that G seven
leaders will be having today.
And Bloomberg's Oliver Krook reports senior Administration officials are saying
it could take up to two weeks for shipping to
increase through this strait and even longer to return to
pre war levels. Today there will be a focus on
Ukraine along with Iran. Ukrainian President Vladimir Zelenski has arrived
in Evyon for a morning session focused on his country's
war with Russia.
And carent At least one key Gulf oil producers already
making plans for horror moves to reopen. Bloomberg News has
learned Katar plans to rapidly boost production of liquefied natural
gas once shipping through the waterway is restored. Katar Energy
is told buyers it plans to raise output to about
fifty percent capacity in the first month, then about eighty
percent a month later. The energy provider says full capacity
will take years to restore due to damage from Iranian
missile strikes.
Nathan, the side of oil continues this morning. Right now,
Brent is at eighty one dollars thirty nine cents a barrel,
Nimex Screwede oil at seventy eight dollars eighty seven cents.
Oil is now headed for its longest losing streak of
the year. It's down four days in a row. Both
Morgan Stanley and Goldman Sachs have cut price outlooks for
the coming quarters. In fact, Golman predicts Persian Gulf experts
will reach pre war levels by the end of July.
Meanwhile, the US emergency supply of crude oil KAREN has
fallen to its lowest level since nineteen eighty three, and
we get details from Bloomberg's Charlie Pellett.
It comes as the Trump administration moves toward completing its
plan to release one hundred and seventy two million barrels
to ease surging fuel prices spurred by the war in Iran.
The SPR the Strategic Petroleum Reserve, was created after the
Arab oil embargo of the early nineteen seventies. In March,
the US Energy Department announced the plan to release oil
from the Strategic Reserve as part of a coordinated effort
by nations around the world, less than two weeks after
the US and Israel launched attacks on Iran. In New York.
Charlie Pellett Bloomberg Radio.
Right, Charlie, thank you. Another news this morning. Eight people
have died after a B fifty two b crash shortly
after takeoff from a US Air Force base in southern California.
The aircraft was on a routine test mission when the
incident occurred. Deputy Commander Colonel James Hayes says they aren't
sure yet what led to the crash.
At this point, we don't have any indication as to
what the cause was of this. We won't be able
to release that information and we don't have an ability
to get that anytime soon.
And Colonel James Hayes says the investigation could take up
to six months to complete.
Turn Back to markets now, Karen stocks are coming off
a major rally on Wall Street. The Dow Jones Industrial
average closed at an all time high, the S and
P five hundred rows one point seven percent, while the
tech heavy Nasdaq one hundred added three point one percent.
Nathan's also shaping up to be another good day for
SpaceX investors. The stock is up ten point nine percent
in pre market trading, and that's building out it nearly
forty percent gain across its first two sessions a public company.
The Elon muss led company is now worth more than
two and a half trillion dollars. David Bauer is co
head of ECM America's at JP Morgan Chase.
It's all systems go to make a pun intended for SpaceX.
But I think if there's any hesitancy of you know,
should I continue to buy up twenty percent? I think
the answer is yes. And if you look long enough,
there's a you know, this is a business that could
be generationally transformational.
JP Morgan's David Bauer. SpaceX is now one of the
six biggest companies in.
The world, and that rally Karen has vaulted SpaceX CEO
Elon Musk to even loftier wealth levels. The world's first
trillionaires net worth throws more than ten percent to one
point two seven trillion dollars, and Musk wasn't the only
one to benefit. The five hundred richest people on the
globe added three hundred and thirty six billion dollars to
their collective fortunes. That is the biggest haul ever recorded
in a single day on the Bloomberg Billionaires Index.
And Asia Nathan, the Bank of Japan has raised interest
rates to a thirty one year high of one percent.
The BOJ hike borrowing caused by twenty five basis points
to a level na scene since nineteen ninety five. Cherry
On is Bloomberg's editor at large in Tokyo.
The BOG wants a pace of hikes to depend on
the Middle East to impact the economic outlook. Of course,
we'll be watching what the inflationary impact will be from
a piece seal if in fact that agreement sticks. So far,
we know that of course, Japan before the conflict imported
more than ninety percent of oil from the Middle East,
so this will be very consequential.
Bloomberg. Cary On also reports the BOJ plans to keep
raising rates in response to developments in the economy and prices, and.
Karen more central banks than ever expect to increase their
gold reserves, and a survey of seventy four central banks,
forty five percent said they planned to buy in the
coming year. Gold prices more than doubled over the past
three years, but some of those gains have been erased
after the Middle East War. Fuel bets that interest rates
will need to stay higher for longer, and checking gold
prices right now in the COMEX, they're four tenths of
one percent. Gold's trading at forty three hundred and sixty
seven dollars ninety cents per rounds.
Well. Speaking of gold, Nathan, let's talk about merchandise for
the New York Knicks. They are now the top selling
championship team on online sportsseller Fanatics. Bloomberry's Tom Busby has
the numbers.
That's over.
Nick fans, this is not a dream. Your long long
wait is ended.
Just after New York's victory on Saturday night, Fanatics released
more than three hundred Nick branded championship hats, hoodies, t shirts,
and other products. At one point, the company said it
was taking in eight thousand orders per minute added up,
and the Knicks are now the top selling championship team
ever on the site, topping the NFL's Philadelphia Eagles for
the record for sales in the twenty four hour period
after winning a title. Tom Busby Bloomberg Radio.
Time Now for look at some of the other story
or he's making news in New York and around the world,
and for that were joined by Bloomberg, John Tucker, John
good morning.
Yeah, Good morning. Carry in New Jersey and investigation under
way after an ICE agent fired a weapon Monday morning
in Ocean County. A person fled the scene in a vehicle,
striking the agent during the encounter. Local residents aren't too happy.
All different kinds of police that you could imagine that
we've never seen in our lives.
Like they're all parking in our parking lot, and we're like,
what is going on here?
According to local police, an Ice agent was attempting to
apprehend somebody in a vehicle in Manahawken. It's unknown if
the driver was struck. No official response from the Trump
Justice Department after California Governor Gaba Newsom claimed he and
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He's coming after me because I'm considering running for president.
The Newsom says. Federal agents have knocked in the doors
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Bloomberg Justice Department probing whether Newsom had any knowledge or
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marquee races for US Senate and governor in a state
primary runoff election today in Georgia, Representative Mike Collins and
former University of Tennessee football coach Derek Dooley are the
finalists for the Republican nomination to challenge Senator John Also
in November, President Trump endorsed Collins at a runoff. Louisiana
and Texas faced several days of heavy rain, bringing a
risk of flaunts as a potential tropical store arm tries
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Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. President Trump is using the
G seven Leader Summit in France to tout his interim
deal with Iran to reopen the Strait of Hormuz, and
Vice President jd Vance has been making the TV rounds
to boost the agreement as well.
Their conventional military is destroyed, their nuclear weapons program is destroyed.
The Strait of horror moves is now open. Now we
have two pathways on good to It is open toll free,
and that's very explicit in the agreement.
Now.
Was Vice President Jadvan speaking with Sean Hannity on Fox
News last night for more on how the deal is
being received at the G seven. We're joined by Bloomberg
Chief Europe Correspondent Oliver Krook, who's covering this year's gathering
in Evyon, France. Oliver is the deal being well received
among g seven lies.
Good morning, I mean good morning.
I mean the initial reaction, obviously by European leaders and
probably the rest of the world, was that sigh of
relief that there was sort of an end to the
most kinetic part of this war, that we can transition
from something from a ceasefire to something a little bit
more durable. But shortly after that we really have the
questions flowing in, right, what is this actual deal, what
is the timeline for it, what are the milestones, and critically,
what is Iran actually agreed to? You know, the Europeans
from the very beginning, as we've heard from a menu
and my col and they said this, And they're also
willing to help sort of militarily on the day after
once you have a more sort of established peace proposal
to help, for example, d mind the straight of Horror
moves to sort of, you know, make the sort of
security arrangement on her moves a little bit stronger. But
they're really only willing to do that if they can
get their heads around what is exactly.
In this deal.
There's also the question of the toll We heard from
the Iranians that it's only going to be toll free
for about sixty days. So these are a lot of
the questions for the leaders here. Speaking with Donald Trump,
we should say they're sitting around the table with him
right now. An additional complication, for example, the Italians have
said Georgia Maloney that they're only going to get in
on this and help the United States with that arrangement
if there's a deal not just with Iran but also
for Lebanon. So there are a ton of questions here
for the leaders. We should say that the Europeans are
also relevant here because they have a number of economic
sansions on Iran. If the US wants to have the
sort of sanctioned relief be part of that proposal, the
Europeans really need to understand the deal, and I think
it's fair to say at the moment a they don't
particularly understand it, and there's a bit of skepticism about
sort of how robust it is.
So what are the challenges ahead of the signing ceremony
on Friday? Are we expecting our European leaders expecting any
answers on some of those questions before that?
Signing, well, they're hoping to get some leader. I saw
my answers from the president himself. As I mentioned, they're
having their Ukraine session right now, so we have the
G seven leaders are around the table right now with
Vlodimir Zelenski having that conversation. We should say that at
noon here, so in about forty five minutes time you
have the main Middle Eastern session. I think that that's
where you're going to get a lot of the discussion
about what the picture looks like going forward in the
Gulf and the straight of horror moves in the future.
We should say they're also joined not just by the
G seven, but also the leaders of Katar, the UAE
and Egypt. So these guys are going to be people
who are very active in the sort of architecture for
the next day. There's also been a report doing the
rounds from the Financial Times that the US is thinking
potentially about this reconstruction fund that could be you know,
three hundred billion dollars. It could involve the golf countries,
and that would really set the kind of carrot side
of this equation. The Americas have been dealing really with
the stick with the military intervention in Iran to try
to motivate them to do what the United States would like.
This would be a way to kind of sweeten it
and create a sort of carrot. Whether or not that
will be effective for the Iranians is entirely a different question.
But again, Nathan, we're just trying to make sense of
all this information as it's coming through and look at
what the sort of power dynamic is going to look
like in a couple of days.
Unfortunately, Alli, we have just thirty seconds left. But you
mentioned Ukraine's president is there, what's on the agenda as
far as Ukraine.
Goes, Yeah, I think for Zelenski, really the main issue
here is the President of the United States is Donald Trump.
Yesterday said that basically now that we're all done and
dusted with Iran, he's ready to re engage with Ukraine
with Russia. For the Ukrainians, of course, they want him
to re engage in a way that is positive. So
it's really a moment for him right now literally as
we speak, to convince the President of the United States
to sort of craft with the next chapter of American
involvement would look like in Ukraine. And we should say
that since the Americans checked out of that process. The
Ukrainians are in a much more dominant position. We could
point to just the strikes overnight with the Ukrainians striking
and oil refinery right near the Russian Federation's capital in Moscow.
This is Bloomberg Daybreak, your morning podcast on the stories
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