US & Iran Shun Diplomacy, 100% Drug Tariffs Plan

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, we begin with the latest from the Middle East.
The US is widening its air strikes on Iran in
an eleventh straight night of attacks. Iranian media report the
US struck a military site near the northwestern city of Tabreeze.
US Central Command has confirmed attacks on Iran's command centers,
launch sites, and air defenses near the Strait of Hormuz.
Tran has responded with strikes on facilities in Kuwait and
Jordan and Iran backed who the The militants in Yemen
are threatening to impose a maritime blockade on Saudi Arabia
in the Red Sea. President Trump says he's not concerned
about that so far.
It hasn't happened, might happen, but we take care of things.
If something like that happens, we take care of it.
You know, We've done that with the Hooties before, and
we haven't heard from them.
In a while.
And Trump spoke alongside Lebanon's President Joseph I.
Jun in the Oval Office.
We get more from Bloomberg Middle East Managing editor Paul Wallace.
Things seem to be escalating. The focus is very much
the Straits of Humus. The US is saying it's a
tax are designed, it's a tax on Iran. Are designed
to make Tehran reopen the straight and stop attacking ships
going through this vital waterway. But as I said, there's
just little sign that Iran is going to.
Back down.
We know, and we've seen this from the start of
this war in late February, that Iran has a very
high pain threshold.
In the meantime, Bloomberg's Paul Wallace reports the Pentagon announced
an army sergeant from Queen's is thought to have been
killed in an attack in Jordan last Friday. Twenty eight
year old Angel Ramper said had been listed as missing.
Iran's semi official Mayor's News Agency reports there are currently
no negotiations happening with the US, but an exchange of
messages is possible.
Meanwhile, Nathan lawmakers got a new price tag for the
war and around so far, and Bloomberg's Amy Morris reports
from Washington.
Defense officials had told lawmakers the cost of the war
was around twenty nine billion dollars a figure that many
analysts assessed as being too low. In his appearance before
the Senate Appropriations Committee, Defense Secretary Pete Hegseth answered Senator
Dick Durbin.
Do you have a new estimate about what the war
has cost us so far? In this the fifth month
of the first year of this war?
In around, Senator, the estimate we have as of today's
thirty seven point five billion SAT.
That represents the cost of the war through what period
of time?
Through September thirty and tag Seth says they're looking for
twenty one billion dollars for munitions, part of a sixty
seven billion dollars supplemental funding request. In Washington, Amy Morris
Bloomberg Radio, All.
Right, Amy, thank you. There's plenty of reaction to this
new price tag and a special edition of Bloomberg's Balance
of Power from Capitol Hill. We spoke with Republican Senator
Rick Scott of Florida.
It's a trade offer, right. Nobody wants to go to war,
but we don't want them to have an icule weapon
to kill us. I've got kids, and I've got grant kids,
and i want them to kill a newc weapon.
Are you.
I'm sure, you're in the same position.
You want your family killed by nuclear weapons, so it's
going to cost us money.
And along with Republicans Scott, we got this reaction from
Democratic Virginia Senator Mark Warner.
This was a war of choice. The President never made
the case of the American people. It's dreadfully unpopular. We
want to replenish those hips, and I do take it
from the funds that have already been appropriated that are
setting in basically the budget at DoD.
And you can catch our full conversations with Senators Mark
Warner and Rick Scott in all our high profile discussions
on our video hub on the Bloomberg Business app Nathan.
It is the morning after primary elections in Arizona and
which seventy five percent of votes counted. Trump Back conservative
Andy Biggs has won the Republican governor's race over a
fellow congressman and David Schweiker. It's seventy two percent to
fifteen percent that sets BIG's up for a showdown with
Democratic incumbent Katie Hobbs and November. Schweiker gave up his
seat in Arizona's first House district to run for governor.
Democrats now see that as a key target in their
bid to take control of Congress. In that race, Republicans
got behind former Arizona colonel's kicker Jay Feely with nearly
fifty percent of the vote. The Democratic race is still
too close to call, but with seventy seven percent of
votes counted, former state Representative Amiesha leads one time news
anchor Marlene glon Woods forty two to thirty three percent.
In New Jersey, Karen Governor Mikey Cheryl says about sixty
six hundred people who identified themselves as non citizens were
registered to vote in twenty twenty three and twenty four.
Cheryl says it was due to a software error in
the state's motor vehicle system.
In the case of this error, some individuals indicated that
they weren't citizens and weren't eligible to vote, but the
software registered them anyway.
New Jersey Governor Mikey Cheryl says she learned of the
problem last week and directed her chief counsel to upen
an investigation. Closure is fueling increased scrutiny of voting by
the Trump administration. President Trump is pushing Congress to pass
legislation to address what he claims is widespread electoral fraud.
We get more from Bloomberg's Miles Miller.
There's a ton of pushback on the Hill for folks
to have to use their IDs in order to vote,
but it gives the Trump administration a lot of ammunition
that this majority blue state is disclosing that there has
been an issue where non citizens have voted.
It's Bloomberg's Miles Miller, and Republicans say the incident is
evidence that Congress should pass the Save America Act.
Another news this morning, Nathan the Associated Press is reporting
President Trump has approved in agreement with Saudi Arabia that
could potentially provide the kingdom with uranium enrichment capability for
its civilian nuclear program that he's expected to last thirty
years and is also expected to involve US firms in
developing the program.
The President Trump is threatening big costs for generic drug
manufactor Karen if they don't move production to the US.
Bloomberg's John Tucker joins US with that story.
John and Nathan Trump said in a social media post
generic drug manufacturers they're going to have two years to
move production to the US or face a one hundred
percent import duty. So it'll all start in August of
next year. The tariffs would then double to two hundred
percent the following year, and ultimately it may be the
American consumer who's going to feel the impact. The planned
tariff would raise costs for manufacturers who already operate on
pretty thin margins, risking higher prices and potential shortages for
the generic treatments that account for more than ninety percent
of US prescriptions. It's unclear how forcing companies to make
more medicines in the US will help bring prices down,
given the lower costs of labor and manufacturing in established
locations like India. I'm John Tucker, Bloomberg Radio.
All right, John, thank you. Let's turn to the markets now.
Our futures are lower ahead of some key tech earnings.
Today we hear from almost thirty companies, including a Google parent, Alphabet,
and Tesla. Bloomberg's Tom Busby has more on what to
expect from Alphabet.
The key for investors any evidence, really, any indication that
the company's billions and billions of dollars invested in artificial
intelligence may finally be paying off. It also needs to
show that advertising revenue at its core search engine unit
can weather the impact of AI on the search business.
Bloomberg consensus calls for revenue of one hundred and seventeen
point zero two billion dollars an earnings per share of
two dollars and ninety cents. Tom Busby Bloomberg Radio.
All right, Tom, thanks.
Ahead of those tech earnings, shares of super Micro computer
or surging pre market up more than sixteen percent. The
artificial intelligence server maker issued preliminary results saying its backlog
hit a record on new orders in the quarter of
more than sixty billion dollars. Super Micro also says its
gross margins will be in the range of fifteen to
seventeen percent. That is almost double its prior estimate.
Time Now for look at some of their 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. Parts of the Northeast are in cleanup mode
after strong storms rolled through the area Tuesday. With more
here's Bloomberg me duralogist Craig Allen.
We just had our third severe weather event in just
four days over the eastern quarter of the nation, and
the worst of it yesterday was about fifty miles either
side of High ninety five from DC to New York
City and Boston at various times of the day, two
hard hit states where New York and New Jersey, and
a tornado watch was in effect elevated to a warning
in several suburbs of New York City as severe thunderstorms
spawned funnel clouds, and the National Weather Service will be
investigating these areas today to see what actually caused the
damage and the intensity.
Bloomberg medurologist Craig Allen. New York Mayor Zaron Mumdani said
the city does not have the ability to arrest Benjamin
dett and Yahoo. The Israeli Prime Minister plans to come
to New York for the UN General Assembly in September.
Mamdani said the US federal government should enforce the international
criminal courts arrest more and instead.
And I want to be equally clear Benjamin Nettnia, who
is not welcome in New York City, nor is any
other war criminal at large.
However, President Donald Trump said netnah who will not be
arrested while in the US. The ICC issued an arrest
warrant for Netnaho in November of twenty twenty four, accusing
him of war crimes and crimes against humanity, but the
US is not legally bound to enforce its warrants. Health
officials say a fifth person is nine in New York
City's Legionnaire's disease outbreak that has sickened at least seventy
two people. The city's Health department has found Legionella bacteria
in thirty four cooling towers across thirty three buildings, all
of which have been cleaned, but officials still have not
identified the source of the outbreak. The health department says
no new patients have reported symptoms in the past ten days,
eight people remaining hospitalized. Global News twenty four hours a
day and whenever you want it with the Bloomberg News Now.
I'm Michael Barm and this is Bloomberg Karen.
Thanks Michael.
Time now for our Bloomberg sports updating. For that, we
bring in John stash Hour.
Thanks Darren. A Pitcher's duel in Philadelphia, the Dodgers top
the Phils two to one on a Max Mounsey home run.
Justin Robleski got the win. Is now eleven and two.
Zach Wheeler took the loss. He's now ten and two
FIFA rankings out after the World Cup, Norway went from
thirty first up to nineteenth in the world. The US
stayed at sixteenth. It's estimated about sixty million tuned in
in North America for the World Cup final, with a
worldwide audience estimated at about two billion. That's a Bloomberg
Sports update.
Stay with us. More from Bloomberg day Break coming up
after this.
Coast to Coast on Bloomberg Radio nationwide on Serious Exam
and the world on Bloomberg dot Com and the Bloomberg
Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. Little end insight to tit
for tat attacks between the US and Iranan this morning.
The US may be expanding the scope of its strikes
deeper into Iranian territory, and President Trump is downplaying the
chance of further talks.
I will tell you they want to desperately meet, and
until they're ready to meet in a meaningful way, we
have no interest.
And that was President Trump in the Oval Office alongside
Lebanon's president and joining us from Istanbul. This morning is
Bloomberg Middle East Breaking News Editor Patrick Sykes, Patrick get
US up to speed on some of the breaking news
and the scope of the US attacks so far.
Good morning morning.
Yes, Obviously, the US operation has been focused on Iran's
southern coast along the Persian Gulf with a view to
restricting his ability to threaten the Straight offor mows. But
increasingly we're seeing strikes moving deeper into the country. We've
had them as far as kind of the far northeast
of the country. The latest were in Tabriz and the northwest,
one of the biggest cities in Iran, hitting a military
site there.
That's the kind of location.
That we saw being hit in the height of the
conflict in kind of March April time, because it's a
big base for missile operations, but is obviously less connected
directly to the Strait of Mu's situation.
What does that mean in terms of how Iran could
potentially respond? Is there scope for Iran to widen its
attacks further against the US?
Yeah, indeed, I think it's just another sign of the
escalatory mode that we seem to be in at the moment.
I think Iran has been the latest side to substantively
escalate the stakes with that move by its allies in Yemen,
the Huthi's earlier this week to announce the blockading of
Saudi ports.
Well, I think we're going to be watching.
Now, is are there any confrontations that come about as
a result of that blockade?
You know, are the shipping companies that tried.
To defy that ban and therefore end up in a
receive on the receiving end of fire potentially from the
Hohothis that'll be key to watch, and then more broadly,
obviously around it continues to target those US bases around
the region. I think we can expect that to continue.
The way it might go up a gear is if
Iran expands that to more civilian infrastructure, critical infrastructure, more
power plants in particular desalination plants as well, beyond those
core military targets.
Well, as we continue to watch these hot attacks continue. Patrick,
in our last minute here, we heard President Trump say
that Iran is desperate to return to talks. Are we
seeing evidence that that is the case.
No.
In short, we're seeing messaging from both sides that they're
more prepared to escalate than de escalate. We had the
Iranian Interior minister in part Kistan yesterday, but hadn't heard
anything about the outcome of those talks.
Pakistan, of course, is a mediator in the conflict.
But just an hour or so ago we heard the
Ministry is saying that Iran had no new message, that
there were no negotiations as such going on. That's partly
an issue of semantics. Negotiations for them means I think
sitting around the table in Geneva, whereas messages is something
a bit less formal, a bit less direct. But for now,
no on the diplomatic front, we're not seeing any sign
of a breakthrough.
This is Bloomberg Daybreak, your morning podcast on the stories
making news from Wall Street to Washington and beyond.
Look for us on your podcast feed by six am
Eastern each morning, on Apple, Spotify, or anywhere else you listen.
You can also listen live each morning starting at five
am Wall Street time on Bloomberg eleven three to zero
in New York, Bloomberg in ninety nine to one in Washington,
Bloomberg ninety two nine in Boston, and Nationwi Light on
serious XM Channel one twenty one.
Plus listen coast to coast on the Bloomberg Business app.
Now with Apple CarPlay and Android auto interfaces, and don't forget.
To subscribe to Bloomberg News Now. It's the latest news,
whenever you want it in five minutes or less. Search
Bloomberg News Now on your favorite podcast platform to stay
informed all day long.
I'm Karen Moscow and I'm Nathan Hager. Join us again
tomorrow morning for all the news you need to start
your day right here on Bloomberg Day Ray