Deadly Flash Floods Devastate Texas; Trump Tariff Deadline Looms

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1:54Podcasts. 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 devastating flooding over the weekend in Kerrville, Texas. At least 82 people are dead, dozens more missing following flash floods in the region. Officials are warning the casualty count will climb with more rain in the forecast. Bloomberg meteorologist Craig Allen joins us with the latest. Good morning, Craig. Good morning, Nathan. You know, this is a situation here that it really takes time to get a grasp of just how dire the situation really is. With this extreme flooding, you've had four months worth of rain in just about four to five hours worth of time when it first began back on July 4th.

2:45And now you're dealing with additional showers and thunderstorms. Nothing as long lasting, nothing as widespread. But anything at this point will exacerbate the problems that they already have down there. To think about a wall of water, two stories high, coming in at you with these rivers picking up all that rainfall in such a short amount of time, it's hard to really imagine the situation that is going on down there. The National Weather Service continues with flood watches that are in effect, and these flood watches include cities like San Angelo and Round Rock and Killeen, Texas, New Braunfels, San Antonio.

3:26This whole area will continue under a flash flood watch at least through this afternoon and right on into Monday evening. All right, Bloomberg meteorologist Craig Allen. Craig, thank you. The death toll includes 27 people at a girls' summer camp in Kirk County, where 10 children and a counselor at Camp Mystic remain unaccounted for. Texas Governor Greg Abbott discussed search and rescue efforts Sunday afternoon. It was nothing short of horrific to see what those young children went through. And we will remain 100 % dedicated, searching for every single one of the children. Texas Governor Greg Abbott says search and rescue efforts are expanding beyond Kerrville.

4:09And Karen, President Trump has signed a disaster declaration for Kerr County. He says he's working to provide more support for Texas. We're working very close with representatives from Texas, and it's a horrible thing that took place. Absolutely horrible. And the president adds he will probably visit the affected areas later this week. Turning to politics, the focus in Washington is shifting from taxes to tariffs. The Trump administration is preparing to send tariff letters to dozens of countries, with the administration's 90-day tariff pause set to expire on Wednesday. Speaking alongside Commerce Secretary Howard Ludnick, President Trump said most nations will have a deal or a letter by then.

4:48There are going to be tariffs, the tariffs are going to be the tariffs. I think we'll have most countries done by July 9th, either a letter or a deal. But they go into effect on August 1st. The tariffs go into effect August 1st, but the president is setting the rates and the deals right now. Now, despite those comments from the president and the Commerce Secretary, Treasury Secretary Scott Bessent is signaling that some countries without deals could negotiate before August 1st. Nathan, President Trump also announced on social media he'll impose an additional 10 percent tariff on any country aligning itself with what he called the anti-American policies of BRICS.

5:28The group of nations, which includes Brazil, Russia, India, China, and South Africa, held a summit over the weekend and condemned U.S. and Israeli attacks on Iran. Now today, Karen, Israel has a negotiating team in Qatar, with Prime Minister Benjamin Netanyahu visiting the White House later today. And President Trump says he is optimistic about a possible ceasefire in Gaza. I think there's a good chance we have a deal with Hamas during the week, during the coming week, pertaining to quite a few of the hostages. And that was the president speaking to reporters in Morristown, New Jersey. Also happening overseas, Nathan, oil prices fell after OPEC Plus agreed to a bigger-than-expected production increase from next month.

6:08The group increased supply by 548 ,000 barrels a day, citing summer demand as reason for optimism that the extra barrels could be absorbed by the market. Checking the price of oil now, NYMEX crude is down a tenth of a percent at$66.92 a barrel, while Brent is up four-tenths of a percent at$68.59. Let's turn to some company news now, Karen. We're watching Tesla shares this morning, and they are tumbling down nearly 7 % in the pre-market. That's after Tesla CEO Elon Musk announced he's forming a third political party he's calling the America Party. That move comes after President Trump signed his tax bill into law, and the president went on to once again blast his former political ally.

6:52And I think starting a third party just adds to confusion. It really seems to have been developed for two parties. Third parties have never worked. So he can have fun with it, but I think it's ridiculous. President Trump says it's, quote, sad to watch Elon Musk go, in his words, completely off the rails. Meanwhile, Nathan, President Trump says the U.S. will discuss a TikTok agreement with China today or tomorrow. He says Washington and Beijing, quote, pretty much have a deal. The information is reporting that TikTok is building a new version of its app for American users, which it plans to launch in September.

7:26And Wall Street returns after a long holiday weekend with stocks at a record. Let's look ahead now with Bloomberg's Charlie Pellett. This week's focus is on the tariff deadline and Fed minutes, along with a smattering of earnings reports. Sylvia Jablonski is chief investment officer at Defiance ETFs. Earnings are expected to be 5 % or more. My take is that AI and some of that tech is going to make that number look a little bit better. And then you can get a rally for that. You know, tariffs, not as bad as we thought. Among the companies scheduled to report earnings this week, Delta Airlines, ConAgra Brands, and the newly public Circle Internet Group.

8:04In New York, Charlie Pellett, Bloomberg Radio.

8:10Time now for a look at some of the other stories making news in New York and around the world. And for that, we're joined by Bloomberg's John Tucker. John, good morning. Good morning, Karen. Israel's military launched airstrikes early today, targeting ports and facilities held by Yemen's Houthi rebels. The attacks came after an attack Sunday, targeting a Liberian flagship of the Red Sea that caught fire and took on water. A three-car accident led to an explosion at a Utah strip mall Saturday night.

8:43over 60 firefighters were on scene with a powerful explosion destroyed one business alert workers in the adjacent businesses told customers to evacuate three people were taken to the hospital there have been more measles cases in the u.s this year than any other since the disease was declared eliminated a quarter century ago according to data from johns hopkins There have been at least 1 ,200 confirmed cases of measles reported in the U.S. in 2025. The sanitation workers strike in Philadelphia, leaving piles of garbage on the streets of the city in the brutal July heat. Talk stalled once again.

9:18City sanitation worker Abdul Qadar has a message for Mayor Sherell Parker. Sherell just needs to come to the table and give us a better contract. Simple as that. The sticking point remains wage increases and benefits. A series of shark sightings forced officials to repeatedly close parts of Rockaway Beach over the long 4th of July holiday weekend. State agencies have 28 camera-equipped drones to search for sharks. A state and city protocol dictates when a shark sighting is confirmed, swimming cannot resume until at least an hour later. Global News 24 hours a day and whenever you want it with Bloomberg News Now.

9:54I'm John Tucker and this is Bloomberg. Karen. All right, John Tucker, thank you. Some people treat ChatGPT like some kind of smart search engine, and some use it to get work done. ChatGPT Work is a new way of working in ChatGPT that can take action across your apps and files, stay with a project for hours if needed, and turn a goal into finished work. It's designed to help you move from a chaotic starting point to a reviewable first version. So all the source materials, briefs, and scattered information that you have to grind through to turn into something useful can just become something useful.

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12:18Time now for the Bloomberg Sports Update, brought to you by Flushing Bank. Here's John Stashauer. John, good morning. Good morning, Karen. The end of the Subway Series at Citi Field. Yankee home runs by Austin Wells and Aaron Judge. They led 5-0. Mets cut it to 5-4. It was 6-4-7. Thitting the Mets at Francisco Lindor at first base with nobody out. and Juan Soto at the plate. And Juan Wetzel on the left field. And Bellinger makes a brilliant shoestring. Gosh, Lindor is still the right first base. Oh, wow. Bellinger with a fantastic shoestring grab and he's doubled Lindor all first. On SNY, Aaron Boone called it the Yankees' play of the year.

12:59Yanks won 6-4 to end their six-game losing streak. The Mets still won the series. Their manager is Carlos Mendoza. We just came up short today, but with guys coming off the bench, you know, Mauricio baited, ready to go, guys coming from the bullpen, keeping it, you know, somehow close there and giving the offense a chance. Yeah, I thought overall, not only today, but the whole series, proud of the guys. In D.C., Red Sox beat the Nationals 6-4, swept the series, and the last place Nationals responded by firing longtime manager Davey Martinez and GM Mike Rizzo. Together, they won the World Series in 2019, but they've struggled ever since.

13:39Pitchers and reserves named for next week's All-Star Game. Max Fried and Jazz Chisholm from the Yankees. Edwin Diaz and Pete Alonzo from the Mets. Alonzo will not be in the home run derby. He's a two-time champion. In Houston, the final of the Gold Cup soccer. The U.S. and Mexico tied at 177th minute. Mexico scored on a controversial header. They originally called it offside, changed on video review. Mexico won 2-1. Week 2 at Wimbledon begins with the end of the fourth round and matches today for top seed Yannick Sinner, seven-time champ Novak Djokovic, and Ben Shelton. He and Taylor Fritz, last Americans left for the men.

14:14Two remain on the women's side, Amanda Nisimova and Emma Navarro, who also plays today. John Stashow, our Bloomberg Sports. Karen Nathan. Coast to coast on Bloomberg Radio, nationwide on SiriusXM, and around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. Investors are heading into a new trading week with a little more trade uncertainty this morning. President Trump is warning countries that are aligned with the BRICS nations they could face an additional 10 % tariff. Other nations, he says, should be getting notice of their new rates this week.

14:49It could be maybe as many as 15 or so. And they'll be going out on Monday and some will go out on Tuesday and Wednesday And we've made deals also. So we're going to have a combination of letters. And some deals have been made. That was the president speaking to reporters in Morristown, New Jersey, yesterday. For more, we're joined by Rosalind Mathis and Bloomberg's news director for Europe, the Middle East and Africa. And, Ros, I think a lot of investors were braced for the idea that we'd see a combination of deals and new tariffs starting to be announced this week. But where did this new threat of an extra 10 percent on BRICS-aligned nations come from?

15:26Good morning. Good morning. Well, obviously, that's also the extra element in a week that does feel quite uncertain. I mean, Donald Trump had said these letters were going to go out days ago. Now he says they're going to start to go out and they may come out over a period of days. And of course, nominating August the 1st allows further room for negotiation in all of that. So it does feel as though we're not entirely sure what we're going to be looking at, perhaps even in a week from now and added to that the element of saying, well, he might put 10 % tariffs on what he calls the anti-American-ness of BRICS, which is, of course, this grouping which has been led by China, Brazil, India, Russia and South Africa.

16:09And that group has been expanding rapidly in recent years in the emerging market space in particular, many, many new members and a growing sense of it being a bit of an alternate power block, although unlikely to supplant the US dollar anytime soon and it's getting Donald Trump's attention. For now it does seem to be more of a poke than anything else because BRICS has been meeting over the weekend in Brazil. You can see from the BRICS members a desire to not really respond to it and maybe see it as a bit of a needling attempt more than anything else but it does add that extra element of uncertainty.

16:44Is he serious about this or was he just raising it in the minute because BRICS happens to be meeting. The word that really stood out from that announcement on social media was anti-American policies of the BRICS nations. Do we know what the president means by anti-American policies, what he's thinking about there? Well, that's the other thing we don't know. I mean, he has criticized BRICS before. He used to be fairly dismissive of it. He's become a bit more attuned to it in recent years. Again, this sense that perhaps BRICS nations are pushing for the use of alternate currencies in global trade, so things like the yuan and whatnot.

17:22And so that's caught his attention for the challenge potentially to the global dominance of the US dollar. So maybe he means countries that do trade in currencies outside the US dollar, for example, as being an example of what he would say is anti-American activities. But it's very unclear, as you say, what he means by that. It could be a very broad church. And so that's why you can see BRICS nations perhaps wisely choosing the course of not really responding so far in significant detail. Of course, one of the BRICS nations is the I, India. There had been some talk leading up to this that the U.S.

17:57and India may be close to a deal that could be announced this week. Does this just sort of upend things as far as that goes now? You'd imagine that the Indian government would be probably choosing to let this one fly by for now. As you say, there's been a lot of chatter that India and the US are getting close to understanding. Again, these are frameworks. These aren't full bore trade deals, the kinds that take years to come together. These are framework understandings at a top level. And it's in India's interest, obviously, to also get some kind of arrangement by the deadline. And the sense is they've been getting pretty close.

18:33Not there yet, but for days they're inching forward. And you can imagine for India, the incentive is to get over the line. So they'll probably let the Bricks comment fly by for now. 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 6 a.m. Eastern each morning on Apple, Spotify or anywhere else you listen. You can also listen live each morning starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121.

19:11Plus, 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 Daybreak.

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