US-Iran Strikes Escalate; Lindsey Graham's Legacy

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 developments in the Middle East.
The US and Ron have exchanged fresh strikes over the
weekend and into this morning. We get more from Bloomberg
Middle East correspondent aber abu Omar.
Into the weekend, we saw yet again another escalation in
the rhetoric between the US and Iran, with the US
targeting over one hundred targets early in the weekend and
then dozens of targets in Iran. This include some attacks
in the eastern provinces of Southern Provinces Bouscheher was attacked
in Iran, and so Iran not backing down. We see
similar patterns of attacks by the IRGC. It does feel
like a little bit of an escalation in the narrative.
We're not seeing back to kinetic warfare similar to what
we've seen in March. The whole region is dragged into it,
but no signs of comfort.
This morning, man Bloomberg's a biabo Omar says, shipping through
the strait of horror moves is at the heart of
the latest escalation. A handful of ships have passed through
the Strait in secret in recent days than.
The escalation in the Middle East is on the forefront.
During the European Foreign ministers meeting in Brussels this morning,
Ben Sills is bloomberg Managing editor for European Economics and
Government Coverage, they.
Are obviously pretty on edge. There's not an awful lot
they can do about this. If the US Iranian deal
starts to unravel, as it seems to be the case.
They're particularly vulnerable to energy prices. Callas has been.
Saying that they have offered the eused nucleleet expertise to
contribute to any potential negotiations, but seems like they're a
way off getting to that sort of technical detail at
this point when they're still shooing at each other.
Bloomberg's Ben Sills adds that EU officials say there can
be no tolls or fees in the Strait of horror moves.
Karen reactionally can and used to pour in following the
sudden passing of Republican Senator Lindsey Graham of South Carolina.
Graham died Saturday, a day after returning to Washington from
his tenth trip to Kiev since Russia's full scale invasion
of Ukraine. He'd been scheduled to appear on NBC's Meet
the Press yesterday. Instead, President Trump phoned in to pay
tribute to a man he called like a member of
the family.
To me.
He was such an advocate. He was, you know, if
he wanted to get something, and you know, he had
a unique ability. He was able to deal with Democrats
and reply if I had a problem, a real problem,
I wouldn't often ask, but if I had a problem
with a Democrat, he could work it out. He was
a great He was a great politician.
Actually, President Trump has ordered flags lowered to half staff
through Saturday night in honor of Senator Graham. His office
says he died of aortic dissection or a hardened artery.
The tour Republican Senator Lindsay Graham was seventy one years old.
Nathan.
Senator Graham is being remembered as a staunch interval ist
on the world stage and a strong backer of Israel.
Begin More on that from Bloomberg News congressional reporter Eric Wawson.
He was very much in favor of the bombing of Iran,
of trying to replace the regime. There just a very
assertive foreign policy voice that's going to leave that faction
of the party without a very, very clear champion right now.
And Bloomberg's Eric Wawson appeared on Bloomberg This Weekend, heard
every Saturday and Sunday morning on Bloomberg Radio and television.
Graham was also a strong advocate for Ukraine's defense, and
his death could leave Kiev and other US allies looking
for new advocates. Several Democratic senators are calling for passing
a new Russia sanctions bill as a tribute to Senator.
Graham, and Is Washington morns Senator Graham Karen another senior
Republican senators looking at clear up speculation.
About his health.
Former Senate Leader Mitch McConnell has released a statement saying
he had a fall last month that landed him in
the hospital and during his recovery he developed a mild
case of pneumonia. He says he has moved from the
hospital to a rehab center, but still is not healthy
enough to return to the Senate. McConnell has not been
seen in public since June fourteenth, He had faced pressure
in recent weeks to provide more details on his health,
including from Democratic Kentucky Governor Andy Basheer.
Let's turn to the markets now, Nathan, where the latest
escalation in the Middle East is weighing on equities and
the oil markets. Checking crude right now, West Texas Intermediate
up two percent of a dollar forty nine and seventy
two dollars ninety cents a barrel. Brent at more than
two percent. It's seventy seven dollars seventy cents in Tech
leading the way lower this morning. Right now Nasdaq futures,
they're down one percent or three hundred five points.
In Asia, CAAR and South Korea's AI fueled stock rally
has come under pressure once again. Sk Heinex tumbled by
a record fifteen percent, underscoring growing investor concerns that the
boom and AI had become overstretched. The sell off sent
to benchmark COSPI Index down nine percent. Sk heinez has
newly listed American depository receipts may be under pressure today
after this. They surged thirteen percent in their debut on Friday.
Well. Nathan Erninge will also be in focus on Wall
Street this week. Five of the sixth largest banks are
set to announce quarterly results tomorrow, and we get a
preview with Bloomberg's Charlie Pellett.
We'll be hearing from JP Morgan, Chase City Group, Wells Fargo,
Bank of America, and Goldman Sachs. Ifan deviit is chief
global market strategist at Minetta Group.
Plating volumes, I expect them to continue to.
Be high, but I would like to hear the outlook
given this reversal of interest rate expectations to interest rate
stay stable or rise?
What does that mean to the pianks.
For analysts covering banks, it will be an interesting Tuesday morning.
While many of the conference calls are staggered, the ones
being held by JP Morgan and Bank of America are
scheduled to overlap in New York. Charlie Pellett, Bloomberg Radio.
All right, Charlie, thank you. It's also a busy week
on the economic front. Kevin Walsh makes his first congressional
appearance as Chair of the Federal Reserve, and that comes
as Wall Street gets a fresh read on inflation. We
get more from Bloomberg's Tom Busby.
On Tuesday Warsh will testify about monetary policy and interest
rates before the House Financial Services Committee and on Wednesday
before a Senate committee. Just ahead of that Tuesday hearing,
the Bureau of Labor Statistics releases it's June Consumer Price
Index ahead of Wednesday's hearing, the June Producer Price Index.
Now both reads are expected to show declines thanks to
recent drops and gas prices, but CPI is still forecast
to come in at three point eight percent, well above
the fed's long term target of two percent. The goal
for Warsh to convince Congress he's able to reach a
consensus with other central bankers on rates ahead of the
fed's next policy meeting two weeks from now. Tom Busby
Bloomberg Radio.
Time Now for look at somebody of their stories making
newsday New York and around the world, and for that
we're joined by Bloomberg's Michael Barr or Michael good Morning,
Good morning Karen.
A legionnaire's outbreak on the Upper East Side of New
York City's Manhattan has dozens of confirmed cases. As of
last night, the city health officials announced that the number
of cases is now at fifty nine, with fifteen patients
still hospitalized. Health Commissioner doctor Alistair Martin, and.
When you catch a case early of Legionnaire's disease, you
can actually treat this fairly straightforwardly, and we're seeing that folks,
when caught early, are making it through.
Doctor Martin noted that people at most risk for contracting
the potentially deadly illness are the elderly, immune, compromised, and smokers.
Approximately one hundred and eighty building cooling towers where the
legionnaire bacteria usually clusters are being tested. Tonight, officials in
New York City planned to hold a virtual town hall
on the latest outbreak. Venezuela's official death toll from last
month's twin earthquakes rose to four hundred and ninety on Sunday.
National Assembly President Jorge Brodigas says that is up from
more than forty three hundred a day earlier. New legislation
in New York State could temporarily put the brakes on
new datus your construction. A new omnibus package of legislation
is awaiting New York Governor Cofyehlkcalds signature, which would temporarily
limit the construction of large data centers known as hyperscalers.
State Senator at Kirsten Gonzalez co authored the bills.
It acknowledges that we are not in a place where
we can build a number of hyper scale data centers
across the state and not see negative impacts on our
environmental resources, on our energy bills, on our water bills,
and more. And so the bill, for some and foremost,
implements a one year moratorium on any state permits being
issued for the biggest of the biggest data centers.
Senator Gonzalez says the bills would also force data center
firms who convert ninety percent of their power intake to
renewable sources by twenty forty. Global news twenty four hours
a day and whenever you want it with Bloomberg News Now.
I'm Michael Barr, and this is Bloomberg Heren.
Thanks Michael. Time now for our Bloomberg Sports update, and
for that we bring in John stash Hour.
Thanks Darren.
The Wimbledon Men's final had only two service breaks over
four sets, both by Jonnick, Senator. He lost the first
set to Alex everybody won the next three. It's Center's
fifth Grand Slam title is second straight at Wimbledon. They'll
play the Baseball All Star Game tomorrow night in Philadelphia
and the Phillies. Christopher Sanchez will be the starting pitcher
for the National League. Toronto's Dylan Cease for the America League.
The Home Run Derby is tonight. The hottest team going
to the All Star Break the Red Sox. They beat
the Mets. They finished their first nine to zero road
tip since nineteen seventy seven. So 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 app.
This is Bloomberg Daybreak.
Good morning, m Nathan Hager. Crude oil is back on
the rise this morning as the US and Iran continue
to trade attacks along with conflicting accounts about the status
of the Strait of horm moves. US Ambassador to the
United Nations Mike Waltz says Iran has repeatedly broken the
Innim peace deal.
This was a performance based MoU Iran is not living
up to it, and all options are on the table.
We saw that from our great US military overnight.
It was you an ambassador Mike Waltz on ABC's This
Week Heard every Sunday on Bloomberg Radio. And joining us
this morning is Terry Haines, the founder of Pangaea Policy. Terry,
we've seen US Central Command go after a number of
targets aimed at degrading Iran's ability to threaten the Strait
of Horror moves in Iran responding with attacks on US
assets around the Gulf. What's your read on what's happening
in the Middle East since the weekend?
Good morning, Good morning, Nathan. I would say that the
markets are following the through line a lot more than
they are the competing explosions, and the through line here
is that there's probably positive direction of travel on opening
the Strait of Horror moves. You see the United States
kind of say enough already on Iran's gaming, and you
see Iran being back into a corner which is increasing
IRGC desperation. There's been all you know, there's the tensions
between conventional civil government and the IRGC have been much
in the headlines over the past week, and I think
what you see is ultimately kind of the concert of
the United States, the Gulf nations, Israel, even China to
some extent, all working together to bring Iran back to
the table. So there are jitters this morning, justifiably so overall,
though I think we're trending in the proper direction.
We have to wonder how Senator Graham might have reacted
to what's been happening. Of course, he was a strong
advocate for going after Iran's nuclear program, carrying out the
attacks that were launched on February twenty eight. Give us
your thoughts, Terry, on the whole left by Senator Graham
and Washington.
Two things really, One is you know the and I
agree with you that I think Senator Graham would have
would have applauded and did applaud the most most recent
actions in the streets.
You know.
The thing is Washington is, you know, always has workhorses
and show horses, and the the the relation of of
show horses, I think to workhorses is higher than ever
and you see, you see that every day and it's
been both parties. But Lindsay Graham was a was a
workhorse who understood was a serious guy. Understood a lot
of things, uh, including how to project power out of
the Senate, and uh you know, the peer respect is
the respect that matters in Washington, and Graham had that
in spades, whether a Republican Democrat or anybody else.
Uh.
So, you know, this is a serious man who achieved
a lot, and it's deservedly mourned. The other thing I
would say, though, is that people who think that that
hole is not going to be filled, I think are incorrect.
Republicans do have a deep and strong foreign policy bench,
from Senator Haggerty of Tennessee to Dave McCormick, who's kind
of the rising star there, Tom Cotton of Arkansas the stalwart,
and a number of veterans including Roger Wicker and Jim Rish.
So Graham did not do this all by himself, and
I think you will see a remarkable consistency in how
the post Graham Republican Party continues to deal with foreign
policy matter.
Do you think, Terry, any of those potential advocates will
have the ear of President Trump in the same way
that Senator Graham did. We only have about thirty seconds left.
Not exactly in the same way, but they do. Bill
Haggerty certainly, former diplomat, among many other things, Dave McCormick,
who has a unique background from West Point to military service,
to Treasury senior to major financial services posts, and Tom
Cotton always has So you know, I think you'll see
a variety of people not really vying, but providing complimentary
advice to the president in building trust there.
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 ninety nine to one in Washington,
Bloomberg ninety two nine in Boston, and nationwide on serious
XM Channel one twenty one.
Plus listen coast to coast on the Bloomberg Business app
Now with Apple CarPlay and Android Atto interfaces.
And don't forget to subscribe to Bloomberg Your 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