Trump Warns Iran; Hormuz Threat Keeps Oil on Edge

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, the war where Iran has reached the end of
its second week and there is little sign of let
up in the attacks or the rhetoric. Both sides are
striking a defiant tone, including Iran's new Supreme Leader, much
to Bahameinni, and his first public statement since the fighting began.
We get the very latest from Bloomberg Middle East correspondent
Jumana Bersecci in Dubai.
It is fair to say that the messaging was one
of defiants. He's saying that they are vowing to keep
the strait of hormones closed. Other fronts will be opened
up as well. They will continue their strikes on US
bases and therefore it's a warning to Gulf states that
as long as they continue to harbor those US bases,
they will continue to be targeted and that they are
looking for reparations, which is similar to the posts that
the President had put up the prior days stipulated the
condition for them to come to the negotiating table.
Bloomberg's Jumana Barsecci reports, President Trump posted his own message
on social media, warning the US has quote unlimited firepower,
unlimited ammunition, and plenty of time. The President also said
Iran's leaders have been wiped from the face of the earth,
but in his first press briefing since the war began,
Israeli Prime Minister Benjamin Natanyahu said a regime is ultimately
brought down from within.
Well Nathan Bloomberg News has learned Russian intelligence is supporting
Iran's retaliation against the US. Israel, and Golf allies. Sources
say Moscow is providing to Ran with information including satellite
imagery and drone targeting tactics. Tony Halpin leads our team
covering Russia and Ukraine.
Russia Iran have had close links four years. Iran was
an early supplier of drones that Russia used when it
first invaded Ukraine because in certainly didn't have its own.
It's now copied those Iranian drones and it's helping Iran
with intelligence like satellite data to spot targeting and also
giving some information about how they used these Iranian style
drones to evade Western and particular American air defenses.
And Bloomberg Tony Halpin says Russia has denied involvement.
And as the fighting goes on, Karen oil continues to
rise in price. Brent crude closed above one hundred dollars
a barrel last night for the first time since August
of twenty twenty two. This morning, Brent is trading just
above one hundred dollars a barrel. It's down a bit
in the session. West Texas Intermediate's trading just above ninety five.
The US has announced several measures to try to ease prices,
including a waiver for buyers of Russian oil already at
sea but with the Straight of Horror moves all but
shut down. Bloombergs. Will Kennedy reports these moves are having
little impact.
And it seems that Yvonne is employing a strategy to
really interfere with halt all oil exports in the region
by ship apart from its own. It's important to remember
that Ivanian oil seems to be flowing fairly freely through
the Straight of Hooe moves, but it wants to stop
tankers flowing but from the Persian Gulf, and it seems
with these attacks on himong from neighbours as that stand
outside the Persian Gulf.
Bloomberg's Well Kennedy reports, Energy Secretary Chris Wright has said
the US Navy could begin escorting tankers through the strait
by the end of the month. The International Energy Agency
has called this war the biggest disruption to the oil
market in history.
Well, Nathan, how much of an impact will these higher
oil prices have on the consumer? We ask Bloomberg Economics
chief US economist and A.
Wong.
If oil stays above one hundred dollars per barrow, we
estimate that that will cost the average American household and
extra nineteen hundred dollars this year. And that's nineteen hundred
dollars less to spend on everything else other than gasoline.
Bloomberg Economics Chief US economists and A. Wong says the
lower sixty percent of households by income spend a bigger
share on gasoline, so the increase would hit them more
than higher income households and Karen.
President Trump is renewing his call for the Fed to
cut rates as the world economy faces shock waves from
the War with Iron. In a social media post, the
President wrote, quote, where is the Federal Reserve Chairman Jerome
too late Powell today. He went on to write, he
should be dropping interest rates immediately, not waiting for the
next meeting. For now, traders have sharply reduced bets for
an interest rate cut this year.
Well, Nathan. Another major story that we're following this morning
involves an apparent terror attack here in the US. A
man rammed his vehicle into a synagogue in Michigan Bloomberge.
John Tucker joins us with the very latest John, Good morning.
Good morning, Karena. Trunk drove around some ballards that are
meant to keep vehicles away from Temple Israel in West
Bloomfield Township near Detroit, and that's how security personnel said
they knew right away this vehicle is up to no good.
It sped through the doors into a hallway and crashed.
The driver, armed with a rifle, died after a shootout
with security. Rabbi Jennifer Coloozy says one hundred and forty
kids were in the temple daycare center at the time
of the attack.
My god, I never thought I'd s here looking at
my temple, surrounded by swatt an FBI and going out
into the parking lot and grabbing babies to bring them
to their parents.
Never The driver's been identified as forty one year old
Ahmed Mohammed Ghazalia, naturalized US citizen from Lebanon. Nobody inside
the synagogue, one of the nation's largest reform synagogues, was
seriously heard and please say the truck contained fireworks as
well as some sort of chemical agent that ignited after
the crash, the MBI calling it a targeted act of
violence against the Jewish community. I'm John Tucker, Bloomberg Radio.
All right, John, thank you.
Then, Virginia, a former Army National Guard member opened fire
in a classroom at Old Dominion University, leaving one person
dead and two others wounded. Police say that shooter was
subdued and killed by ROTC students. Dominievins, a Special Agent
in charge of the FBI's Norfolk, Virginia office.
There were students that were in that room that subdued
him and.
Rendered him no longer alive.
I don't know what's to say it, but they basically
agreeable to terminate the threat.
The FBI identified the shooter as Mohammad Baylor Jallo. They
say he yelled a Lahu akbar before the shooting and
it'd spent eight years in prison for attempting to aid
the Islamic State.
We want to turn to the equity markets now, Nathan,
where futures are once again a little change to lower.
Following yesterday's broad ranged selloff on Walls Street, all three
major indexes fell at least one and a half percent.
Charles Canter, a senior portfolio manager and Newburger Berman, talked
about investing during these volatile times.
If you think about the war, for example, I think
the war and investing have a lot of similarities. On
the short term, life feels very uncomfortable, very uncertain, and unpredictable,
and you've seen that today and over the long term,
the best businesses, the best capitalized businesses, the best businesses
that can allocate capital like the strongest armies, will ultimately
win out.
A Newburger Berman is Charles Candor. There. The Vicks Wall
Street spear gauge continues to rise right now. It is
closing in on twenty eight.
And in company news Karen Shares of Adobe are down
nearly nine percent in early trading. The software giant did
post earnings in line with estimates, but it announced its CEO,
Shintanu Narayan is resigning a deep skepticism about the company's
ability to thrive in the AI era. Gil Lauria is
head of Tech Research at DA Davidson.
It's a tough job for the next CEO, so who
that person is, whether they're credible in the AI RELM,
will be important in terms of the message. It just
has to be a change of direction. Adobe has really said, look,
we're fined on AI, We're agnostic, We're going to be
responsible AI for responsible image and video generation. That message
clearly has not resonated with investors, so that message has
to be different.
To DA Davidson's Gilloria Noryan had served as Adobe CEO
for eighteen years. He will remain in the position until
a successor is a.
Pint and Nathan a programming note. Markets make cloths on Friday,
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by Bloomberg's Michael Barr.
Michael, good Morning, Good Morning, Karen. Cuba vowed three dozens
of prisoners as its president prepares to speak to the
press for the second time since President Trump cut off
vital fuel supplies to the communist rund Island after capturing
its principal ally. According to Cuba's Foreign Ministry, fifty one
prisoners will be released in the coming days, citing the
spirit of goodwill and close fluid relations between Avanna and
the Vatican. The detainees to be released have all served
a significant portion of their sentences and have maintained good
behavior in prison. The lapse in funding for homeland security
means TSA agents have now been working without pay for
nearly a month. At Sea Tac Airport, a temporary food
pantry has opened up for unpaid federal employees, where spokesman
Perry Cooper says, those workers can pick up whatever they.
Need, nonperishable items, self storable food, hygiene products, those kinds
of things, infant supplies that some of these folks just
don't have the ability to get because they're not getting paychecks.
Similar food banks being set up at the airports across
the country. In Congress, Democrats say they are willing to
fund many of the agencies housed under DHS, including the TSA,
but will not vote to fund ICE without significant reforms
to their operations. Republicans, meanwhile, accused Democrats are rebuffing efforts
to negotiate. NASA cleared its Moon rocket for a launch
next month with four astronauts after completing the latest round
of repairs. It will mark humanity's first trip to the
Moon in more than fifty years. NASA Acting Associate Administrator
Lori Glaze.
It's a test flight and it is not without risk,
but our team and our hardware are ready.
NASA's Lori Glaze said. The space agency is aiming for
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Now Now Michael Barrn, this is Bloomberg Carrot.
Thanks Michael. Time now for our Bloomberg Sports update, and
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Thanks Karin. One hundred and twenty seven consecutive games for
Shay Gildess Alexander the Oklahoma City Thunder scoring twenty or
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He has signed with Minnesota a one year deal. In Houston. Tonight,
it's the USA versus Canada quarterfinals of the World Baseball Classic.
That's a Bloomberg Sports Update.
Stay with us. More from Bloomberg Daybreak 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, I'm Nathan Hager. Now into day fourteen of
the Iran War, there is little sign of let up
on either side. President Trump says he is determined to
finish the job against Tehran.
We're doing what has to be done, should have been
done during a forty seven year period, could have been
done by a lot of different people that chose not
to do it.
That was President Trump at the White House last night.
This morning, we had to Dubai to bring in Bloomberg's
Paul Wallace, our managing editor for Middle East and Africa
Economic and Government News. Paul, good morning. What is the latest.
We've heard reports of massive explosions this morning in Tehran.
Hi, and good morning. Yes, so the more Israeli strikes
on Tehran today Israel announced that we presume the US
is also continuing it strikes across western parts of the
country as well. And yes, there appears to be no
real let up from Iran either. It's still it's maintaining
a very defiant tone.
We heard.
We had a statement from the new Supreme Leader yesterday,
the first one since he got elected right at the
beginning of this week, and he said that the straight
of wo should remain close and essentially said this war
will continue. So neither the Israelis, nor the Americans, nor
the Iranians seem in any mood to stop fighting at
the moment.
We also heard from that statement from the Supreme Leader
that Iran could try to open up new fronts if
the fighting continues. Does Iran have the capacity to do that?
Well, that was a significant statement and it's hard to tell.
I mean, it is possible that Iran tries to get
what's essentially the last of its proxies, the Houthis that
are based in Yemen, to start fighting again and essentially
to enter this war. So the Houthis have territory in
the Southern Red Sea. When the war in Guarza erupted
after the October seventh attacks by Hamas on Israel, the
Houthis became pretty crucial. They essentially closed the Southern Red
Sea to Western shipping because of their drone and missile
attacks on vessels going through that waterway. They've been quiet
or quiet ish since this war on Iran erupted. They
haven't said much beyond sort of hinting that they're ready
to go if they need to. If they do decide
to attack ships again, that would be a big blow
to the West, to the Americans. They have territory that's
quite close to the Saudi Arabian port of Yamboo. Yamboo
has become extra important because it is the outlet for
that big East West pipeline that the Saudis have, so
they can't export oil from their eastern fields through the
straits up for Moose, so they're now using Yamboo in
a big way. If the Huthies enter the Fray, and
especially if they decide to either target Yambuo or ships
going there, that is going to be a big problem
and will cause more crisis in the oil market.
This is Bloomberg Daybreak, your morning podcast on the stories
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