US Bombs Persian Gulf Supertanker, Warsh: Trump Hasn't Interfered

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 has
struck Iran for a fifth straight day and hit a
sanctioned oil tanker near the country's main export terminal. Iran
responded to the US barrage by firing on American bases
in Kuwait and Jordan. We get more from Bloomberg Middle
East Managing editor Owner Aunt.
We saw further strikes by the US on various missile
storage and missile launch sites, control and command centers again
along Urans southern coast. Islamic Republic responded as expected. There
have been retaliatory attacks, especially on our states in the
Persian Gulf. So this basically takes up the escalation one
step further. We are seeing the continuation of a series
test facing. Well, there's no ceasfire really left anymore, but
the interim agreement has all but collapsed. Yeah, the latest
strikes are just a continuation of this serious test facing
the intermagreement.
Blom Bloomberg's on Around says the US and Iran have
accused each other of breaching the terms of the memorandum
of understanding.
Nathan, we have a warning from the head of the
International Energy Agency. Executive director of FANTI Ral says the
global economy faces a renewed challenge if the conflict that's
choked the straight up for horm moves is not resolved
in a matter of weeks. Birell spoke with the Bloomberg's
David Gura at the Aspen Security Forum in Colorado.
Big uncertainty and the markets are nervous whether or not
that will be soon and lasting solution to the problem.
And at the same time, many countries are taking some
measures to avoid diverse case scenario.
And that was International Energy Agency Executive Director of FANTI Viral,
speaking with Bloomberg's David Gura at the Aspen Security Forum,
added that the conflict must be resolved in a matter
of weeks to limit impact on the global economy.
In Washington, Careen, a couple of key Trump nominees faced
questions in confirmation hearings. Acting Attorney General Todd blanche faced
criticism over a deal giving President Trump and his allies
immunity from past tax audits. Bloomberg's Amy Morris reports from Washington.
Blanch says the fund created by President Trump's lawsuit against
the IRS has been canceled, but Republican Senator John Cornyn
raised concerns that it could be revived.
President of the United States has not agreed in writing
to delete the weaponization fund, and there's no guarantee that
he might raise that issue by way of a lawsuit
in the future.
There's no fund. I suppose they could bring a lawsuit.
Senators also questioned whether Blanch can operate independently from Trump
given his past work as Trump's personal lawyer. Blanch will
need the support of all Republicans on the Judiciary Committee
to advance his nomination. In Washington. Amy Morris Bloomberg Radio.
Thank you Well. President Trump's nominee to lead the US
Intelligence community also appeared on the Hill for his confirmation hearing.
Jake Clayton repeatedly sidestep questions from Democrats. A mother Joe
Biden won the twenty twenty election. He had this exchange
with the top Democrat on the Senate Intelligence Committee, Mark Warner.
So let me just ask you. It should be a
simple question.
Do you deny that Joe Biden won the twenty twenty.
Election Senator, I'm not an election.
Tonight, Joe Biden was certified as the President of the
United States.
Jake Clayton was also pressed about his current role as
Manhattan's top of federal prosecutor and his offices moved to
subpoena New York Times journalists for reporting on security shortcomings
on President Trump's new air Force one from cutter Well
Security Investigation.
I'm happy to talk to you and this committee about
our approach to the First Amendment.
Jake Clayton's timeline for a full Senate confirmation vote is
still unclear about. Democrats have voiced urgent see about replacing
the current Acting Director of National Intelligence, Bill Poulty. President
Trump appointed him to succeed Tolci Gabbard as DNI last month,
despite a lack of national security experience in karent election.
Security is expected to be a key topic when President
Trump delivers a primetime address to the nation tonight. The
President said as much to reporters in the Oval Office.
Our country has to shape up. But this is what
we're going to be talking about Thursday, is.
It doesn't get bigger because without free and fair elections,
you don't have a country.
We'll be discussing other things too.
The White House hasn't said what those other things might be,
but the president's last address to the nation was in
April on the Iran war. Tonight's speech is scheduled for
nine pm Wall Street Time. You can listen on Bloomberg
Radio or watch on Bloomberg Television or the Bloomberg Business app.
Nathan Let's turn to geopolitics and trade. US Trade Representative
Jamison Greer signaled modest expectations for this summit between President
Trump and his Chinese counterpart, she paying in September. He says,
the meeting, we'll focus on assessing current commitments by the
two sides.
The number one deliverable we always have between President Trump
and President She is to continue the stability of the relationship.
Both of these leaders are very committed to having a
strong and solid personal relationship. Now that doesn't mean we
don't have issues in the broader relationship. Obviously we do.
China is a big challenge for the US in a
lot of ways, but we want to make sure we're
delivering stability.
US Trade Representative Jamison Greer ads at the US We'll
look to bridge gaps in China's compliance with trade agreements,
including on China's commitment to delay Rare Earth's restrictions. Greer
made the comments to Bloomberg's David Gura. Catch the entire
interview in all of our coverage of the Aspen Security Forum,
on the Bloomberg Video Hub, at Bloomberg dot com, and
on the Bloomberg Business App.
I'm back on Capitol Hillcaren fed Shair Kevin Warsh wrapped
up two days of congressional testimony answering questions from the
Senate Banking Committee. Walsh was asked about possible potential interface
pearance from President Trump.
President has not before I took this office, before I
raised my right hand, he has not tried to influence
the conduct of monetary policy, and if he tried to,
I would continue to keep my head down and do
the job. I known him a long record, but I've
got a seven week record, and before that, I had
a twenty five year record, and I think that should
count for something.
Man Hours after those comments from Chair Walsh, President Trump
reiterated his view on interest rates, telling Fox Quote, I'd
like to see them go down.
Let's turn to the markets Nathan, where ship stocks will
be in focus again, this after Taiwan Semiconductor Manufacturing raised
its spending in revenue projections for the year. The main
ship maker for in Nvidia, now expects capital expenditure of
as much as sixty four billion dollars in twenty twenty six.
It's also projecting revenue growth of slightly above forty percent,
significantly higher from the more than thirty percent it had predicted.
And speaking of Nvidia, care in Japan is planning to
buy more than twenty seven thousand of the chip maker's
next generation Cuban chips from the world's most valuable company
to build a home grown foundational AI model for robots.
The initiative is part of a series of efforts by
the Japanese government to lower its reliance on foreign technology
and bolster national security.
Nathan.
South Korea will temporarily halt new listings of single stock
leveraged exchange traded products to curb market volatility. The move
follows a surge and popularity of funds tied to Samsung
Electronics and sk Heinis. More than a dozen leveraged ETFs
launched two months ago, which aimed to deliver twice the
daily return of Samsung and sk Heinex, and it has
been blamed by market participants for exacerbating price wings.
Well sticking with AI Karen, JP Morgan, Chase CEO Jamie
Diamonds warning against broad access to anthropics mythos model. Speaking
at the Pennsylvania Defense and Innovation Summit, Diamond said, the
powerful technology raises serious risks.
Bethos, That's a real issue, which I know our government
is on top of. This point is not to stop
you know, small banks and gainer. It's really just to
make sure we roll out the stuff that we know
is being controlled. Because this you're giving ballistic missiles to
individuals with meethos basically.
And JP Morgan CEO Jamie Diamond noted his bank is
among a group of companies that have been testing Mythos.
Since April, Nathan, SpaceX shares have come back to earth,
they fall into their lowest level since the company went public.
Shares briefly fell below their initial public offering price. SpaceX
surgeon only fifty percent over its first three days of trading,
only to lose nearly a quarter of their value over
the next three sessions.
And in deal News Karen Uber has agreed to buy
German food delivery company Delivery Hero for fourteen point eight
billion dollars. The food delivery market, which had boomed during
the COVID pandemic, has been rapidly consolidating in recent years.
The Right hailing company has been making acquisitions overseas to
strengthen its position internationally.
Time now for look at some of the other stories
making news in New York and around the world, and
for that rejoined by Bloomberg's Michael Barr.
Michael, good morning, Good morning Karen. The heat will continue
in the Northeast today, but even more troublesome is the
air quality. With more Here's Bloomberg Midaula, just Craig Allen.
The sky had that orange color again yesterday, right, and
it could be worse today. So far, the smoke from
wildfires in Ontario Province have been mostly aloft, but it
is likely to be more at ground level today, with
an AQI of one hundred to one fifty in Washington
and Boston, but as unhealthy as one fifty to two
hundred from Philadelphia up to New York City. Air quality
alerts for ozone and fine particulars will be in effect
most of the day today.
Bloomberg medairelogist Craig Allen. The Department of Homeland Security abandoned
a decision to halt most immigration traffic stops after President
Donald Trump demanded that the tactic continue. The decision to
resume traffic stops was made after a fatal shooting of
a Columbian man during an enforcement operation in Maine, which
led to a brief suspect of most vehicle stops except
in serious criminal cases. Meanwhile, Main Republican Senator Susan Collins
backs a temporary halt to routine ICE traffic stops.
The entire Main delegation has says for a thorough, full
and impartial investigation to be conducted by the Independent Office
of the Inspector General.
The shooting in Maine was less than one week after
an ICE agent in Houston, Texas, shot in killed man
and a traffic stop during a deportation crackdown. More on
the story we heard just earlier. The New York Times
refused to let its reporters testify in front of a
federal grand jury after they were subpoena by the Trump
administration over a story about security issues with an air
Force one plane donated by Cutter. The Times filed motion
under sealed quashed the subpoenas, calling them abusive and improper,
and saying they violated the constitutional rights of the Time
and its journalists. Global News twenty four hours a day
and whenever you want it with Bloomberg News Now Michael
barm and this is Bloomberg Herroen.
Thanks Michael. Time now for our Bloomberg Sports update, and
for that we bring in John stash Hour.
Thanks Carrey. Defending champion Argentina has now pulled out four
straight World Cup games and has reached the finals. They'll
play Spain Sunday in New Jersey. In the Semis yesterday
in Atlanta, Argentina trailed England one deal and then scored
twice in a six minute span for a two to
one victory. Baseball's back tonight with one game. It's between
the Mets and the Phillies. A trade Houston sent pitcher
Lance mccullors to Milwaukee. Mccullurs was with the Astros for
twelve years. That's your 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.
This is Bloomberg Daybreak.
Good morning, I'm Nathan Hagrid. Has been five straight days
of US attacks on Iran around the Strait of Hormones
and now into the Persian Gulf, but Tehran is showing
little sign it's willing to back down from President Trump
starts to escalate even further.
I don't like giving the deadlines, but they pretty much
know they know the story.
They better behave.
That was President Trump speaking to reporters outside the White
House and joining us from Dubai. This morning is Bloomberg
News Middle East Managing editor Owner aunt Owner. We've heard
the President say that the US will strike even harder.
He's even threatened to go after energy infrastructure as soon
as next week. Does it seem as though the US
attacks are intensifying to the level that the President has suggested?
Good morning, Good morning.
Well, the US attacks are not at that level yet.
Having said that, after five weeks off US strikes on
Iran and Iran's retaliatory attacks on US bases in the
Persian Gulf and elsewhere in the Middle East, is a
sign that we can say the interim peace period, if
we can call it, that has all but collapsed. Yes,
Donald Trump did say that next week they might go
after they might start going after some energy assets, starting
with power plants and bridges, which is something that he
threatened to do earlier in the war, in March especially,
and some of those attacks did take place, which resulted
in mats of retaliation. So the hope right now at
this in the region is that it doesn't go to
that level. But that's definite the directions as we stand now, we've.
Heard from the head of the International Maritime Association and
an interview with Bloomberg Radio saying the strait of hormones
is now too dangerous for commercial travel. How significant is
it for an official of that capacity to deliver that
kind of warning.
It was extremely significant. Then they're not alone. India has
just advised it's shipping companies and shipping companies to basically
stay away from trips across the hormouse straight and they
asked Indian seamen not to be sent to the area. Look,
I think what we need to look at is the
level of traffic, and it's dwindled, it's come down to
basically nothing. We've seen supertankers getting hit by Iran and
also as well as the US, and a most recent
example that took place yesterday, and we're seeing a slump
in oil loadings in the Persian Gulf by Saudi Arabia,
which is a bit of an exception because it is
not as reliant on loadings from within the Persian Gulf
as other countries are because of its ability to divert
its oil supplies oil exports to ports on the Red
Sea coast. But we've also seen a decline in shuttle
traffic which was used by the likes of United Arab
Emirates to get it to get the oil out of
the Persian Gulf and basically transferred to other ships for
exports elsewhere. So as things stand now, there is a
huge difference between what's going through now in the straight
up foremoose and what was the case just a week
ago before the latest round of attacks and counterstrikes started
taking place between the US and Iran.
And not just around the strait of Hormu's owner. We've
also seen the US strike a sanctioned oil tanker inside
the Persian Gulf. Could we be seeing an expansion of
the blockade.
Yeah, that is a first, or at least one of
the rare examples where a ship, an Iranian ship, was
struck so deep inside the Persian Gulf. As you said, Nathan,
the actual blockade, the physical blockade, is further to the
south of where that instant took place, and it shows
the American willingness and obviously as well as capability to
strike Iranian ships even after they go past what we
believe is the general contours of the American block Kate
that is now outside the gulf, outside the Strait of Hormoos.
And we only have about thirty seconds left here. Owner,
But does all this seem as though it's getting the
US and Iran any closer to getting back to a
negotiating table.
No, it's not the last time this kind of pickup
took place. It was down to the negotiators to basically
pull off a breakthrough in diplomatic talks, which may always
happen in an unexpected way. But we have no indication
from either side that they are close to a breakthrough
the kind of breakthrough that we saw before, Nathan.
Okay, Owner on, thank you for this. We'll be checking
back with you throughout the morning. That's a Bloomberg News
Middle East Managing editor owner aunt with us this morning
from Dubai Karen Nathan.
We now want to turn to Bloomberg's exclusive discussion from
the Aspen Security Forum with US Trade Representative Jamison Greer.
He spoke with Bloomberg's David Gura in a wide ranging
conversation explaining why stability for China trade time remains a
top priority ahead of the expected visit a President she
to the US in September. It began the conversation discussing
China and Section three oh one notices.
Let's listen in so China's compliance with the rare earth
elements of our agreements. It's not perfect. I think everyone
knows that. You can read that in the paper. That
being said, we are getting a flow of rare earth.
We don't have factory shutting down because they don't have it.
But again, we really want to be in a position
where we were, you know, in twenty twenty four and
twenty twenty three in President Trump's first term, where we
had a regular flow of rare earths. We also know
that the Chinese they use rare earth for economic coercion.
They did it in twenty ten and twenty eleven, they're
doing it now, so it's not necessarily surprising. But we're
continuing to you know, to have some flow and where
we have gaps, where we have problems the sector of
the treasury and I you know, we work with our
counterpart in China to try to loosen that flow up.
Sometimes we're more successful than others. One important thing is
we're moving forward in the US on rare earth production.
One of the things I'm doing on my trip out
west here, I'm going to Utah to visit facility where
we've already they've discovered rare earth in the Utah Desert
and they're refining them and further manufacturing them at a
facility in Utah, which is a great development for US
national and economic security.
You've got rare earths.
There's huge pharmaceutical dependents as well, and I wonder how
you're thinking about that, the way that you can kind
of curb our reliance on Chinese pharmaceuticals and ingredients.
Yeah, we think about this a lot. This is really
critical because at the end of the day, if somehow
you lose access to Chinese inputs, it can be a
huge challenge for our own manufacturing base. And some people
will say, well, what about India, Fine, but a lot
of the inputs that India uses also come from China.
One great thing that we're seeing as we try to
encourage companies to reshore is we actually have commitments from
seventeen pharmaceutical companies, the largest and the most major pharmaceutical companies,
not only to lower prices of medication here in the US,
pharmaceutical prices have gone down by two point five percent,
but they've also agreed to reshore here and to manufacture here.
And so we have companies like Eli Lilly and Novardes
and others actually pouring concrete and superstructures going up in
new facilities in North Carolina and Indiana and southern California.
If there's a long way to go until this meeting
in September when the Chinese president comes to the United States.
But let me ask you, lastly, sir, how you're thinking
about that. You were so integral to the conversations that
took place in Beijing. What are you expecting deliverables wise
to come out of that meeting in Washington in a
couple months.
Well, the number one deliverable we always have between President
Trump and President She is to continue the stability of
the relationship. Both of these leaders are very committed to
having a strong and solid personal relationship. Now that doesn't
mean we don't have issues in the broader relationship. Obviously
we do. China is a big challenge for the US
in a lot of ways, but we want to make
sure we're delivering stability. There's never been a situation where
the US side or even the Chinese side, has gone
out and said one should expect a comprehensive agreement that
resolves all issues.
Like.
No one's ever promised that, So that's not what we expect.
We will have an opportunity to take stock of Chinese
commitments with respect to purchases of soybeans and other agricultural products,
will take stock on the rare off issues we decided,
So I think it'll be a moment for stock taking,
you know, confirming the relationship, making sure that China's complying
with what it's agreed to do. That's really what we're
looking forward to in this meetium.
This is Bloomberg day Break, 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 to 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 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