Iran & Israel Trade Attacks, Security Increased at MSG Ahead of Trump Visit

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1:14With PayPal, Venmo, Pay Later, and all major cards. So you can focus on the future. When you need a partner trusted by millions, there's one platform for all business. PayPal Open. Grow today at paypalopen.com. Loans subject to approval in available locations. 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 a tense situation in the Middle East. Israel and Iran have been exchanging missile attacks despite calls from President Trump on both sides to stop the fighting. In a wide-ranging interview with NBC's Meet the Press, heard Sundays on Bloomberg Radio, the president said he still thinks a deal is possible.

2:04We're very close. We have a couple of points. They don't even seem like big points. They've conceded the fact that they will not have nuclear weapons. And in a separate interview with the Financial Times, President Trump said Israeli Prime Minister Benjamin Netanyahu would have to accept any U.S. deal with Iran, saying, quote, I call the shots. We get more from Bloomberg's Zabir Abu Omar in Dubai. The ceasefire of the true stocks have been in a fragile state since the initial ceasefire was reached on April 8th. But what we've seen over the past couple of days really complicates things, right? So what we've seen over on Sunday is Hezbollah in Lebanon and Israel trading fires.

2:40Israel had retaliated to an attack by Hezbollah on the northern part of Israel to attacking the southern suburbs of Beirut, killing people and injuring others. And now Bloomberg Zabir Abou Omar reports Israeli Army Radio saying Iran has fired about 30 missiles at Israel since last night. An Iranian official says the U.S. is responsible for the consequences of any escalation in the Middle East. And Nathan, there's a new risk of escalation in the Strait of Hormuz. The Iran-backed Houthis in Yemen have declared a ban on Israeli ships in the Red Sea, threatening a key bypass route to the waterway that handles about a fifth of global oil flows.

3:18The Houthis previously began attacking ships in 2023. after the outbreak of war between Israel and Hamas and Gaza. They've largely set out the war in Iran, but have repeatedly warned they could close the Bab al-Mandab Strait that leads from the Red Sea to the Indian Ocean. Well, let's turn now to politics, Karen. There is a new turn in the race for mayor of Los Angeles. Bloomberg's John Tucker joins us with the latest. And Nathan, as more mail-in ballots are counted, Democratic Los Angeles council member Nithya Rabin has surged past Republican reality TV personality Spencer Pratt. A Raman who initially trailed Pratt by eight percentage points closed the gap as the mail-in ballots were counted over the weekend.

4:00And that's a protracted process in California that can drag on for weeks. Raman had 27.1 % of the votes counted so far. Pratt, 26.7%. Both are vying to compete in a November 3rd runoff against Mayor Karen Bass, who has 34.7 % of the vote. The 44-year-old Rauman, his favorite, among other things, cutting spending on police. Her leftist politics prompted comparisons with Zoran Mamdani, a fellow Democratic Socialist who swept a victory as New York's mayor. I'm John Tucker, Bloomberg Radio. All right, John, thank you. California's vote count led to a testy exchange and an abrupt end to President Trump's interview on NBC's Meet the Press.

4:40Host Kristen Welker first asked about the so-called anti-weaponization fund at the Justice Department. The president called it a great idea and said he'd been interested in reviving it. People have been badly hurt. They've committed suicide. They've lost their jobs. They've lost their families. They've lost their wives. They've lost everything. They've lost everything over a fake weaponization of government. But the conversation took a turn when Welker challenged the president on his claims that the slow vote count in California proves the election was rigged. Do you think it's appropriate that they have an election and five days later they're nowhere close to picking a winner?

5:18State and local officials acknowledge they are slow. They're urging. No, they're crooked. They're urging the votes to be counted quickly. That's how they vote in California. They're crooked, just like you're crooked. Your press is crooked. And meet the press is crooked. President Trump then walked out of the interview calling ABC, CBS, CNN, and NBC one-sided networks. Well, tonight, Karen, President Trump's going to be in New York City for game three of the NBA finals. And the extra security means major changes for Knicks fans watching the game inside and outside Madison Square Garden. Bloomberg's John Stashauer joins us with more on that.

5:51John? Yeah, Nathan, the watch party outside MSG was scrapped. The NYPD said the decision was made in conjunction with the Secret Service. And there is extra security tonight with the president in attendance. Knicks haven't played at the Garden in two and a half weeks since May 21st. Two wins in Cleveland. Of course, two thrilling wins in San Antonio. And that's why Carl Anthony Towns, the Knicks, bring a 2-0 finals lead to tonight's Game 3. It's always great when you get to play the game of basketball at its highest level. So to be able to lace the shoes up, be able to put the jersey on, and be able to see our fans see finals basketball after all this time is going to be really, really special.

6:26Tickets say to be going for about$10 ,000 up high and is close to$100 ,000 down low. More on Game 3. Coming up in sports, John Stashauer, Bloomberg Radio. All right, sounds good. Thanks, John. Speaking of security concerns, less than a day before thousands of fans are expected to descend on neighboring Madison Square Garden, six people were injured in a stabbing inside New York's Penn Station. A suspect was taken into custody after the attack. Paramedics found one victim with serious injuries, two with moderate injuries and two with minor injuries. Authorities did not immediately release details about what led to the stabbing or whether the victims were targeted.

7:01The sprawling rail complex beneath Madison Square Garden serves Amtrak, Long Island Railroad, NJ Transit, and New York City subway lines and is used by hundreds of thousands of commuters and travelers each day. Let's turn to markets now, Karen. Friday's Wall Street tech-led sell-off is spreading overseas. South Korean stocks plunged as investors pulled back from artificial intelligence bets. The KOSPI index tumbled as much as 8.8%, triggering a 20-minute trading halt shortly after the market opened. Timothy Moe is chief APAC regional equity strategist at Goldman Sachs. I think in the longer run, this will prove to be a technical correction, albeit a scary one, in a longer-term bull market.

7:46And the underlying fundamentals are still very, very strong. Goldman Sachs chief APAC regional equity strategist Timothy Moe there. The Kospi winded up closing down 8.3 percent, and Japan's Nikkei fell 3.9 percent. Well, here in the U.S., Nathan, tech stocks are bouncing back a bit from last week's massive sell-off. NASDAQ futures, they're up half percent. The NASDAQ 100 sank 4.8 percent on Friday. This year's big winners, chip stocks, plunged 10 percent. NVIDIA CEO Jensen Wong calls the global tech stock sell-off a buying opportunity. Everybody should be very excited. They can now buy stock at a cheaper price.

8:27And it's absolutely true that the future of AI is very bright. It is a foregone conclusion that AI will be infrastructure for the world. And NVIDIA CEO Jensen Wong made the comments to reporters in Seoul, South Korea. And this morning, Morgan Stanley strategist Mike Wilson called the U.S. stock sell-off a healthy reset. He is a baseline target of 8 ,000 for the S &P 500, which is about 8 % higher from current levels. Well, the betting on Wall Street after Friday's jobs report, Karen, is for an interest rate hike this year. But President Trump says the Fed would be wrong to do that. He talked about the Fed and new chairman Kevin Warsh on NBC's Meets Press.

9:10Kevin's fantastic, and I want him to do whatever he wants. I don't want to have a big influence on him. but we had a great report. We're doing great. And it's unfair that whenever you do great, they want to raise interest rates. It should be the opposite way. Well, President Trump's comments add to the economic and political forces tugging at Kevin Warsh as he prepares to chair his first policy meeting next week. In company news, Nathan, Apple's Worldwide Developers Conference kicks off today in Cupertino, California. The focus will be on Apple's artificial intelligence strategy. The event comes two years after its first AI rollout was plagued by subpar technology and delayed features.

9:49Time 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 Michael Barr. Michael, good morning. Good morning, Karen. The search continues for the shooters that injured 12 people over the weekend at the Old West End Festival in Toledo, Ohio. Authorities believe there were at least two shooters involved, and they had probably been firing at one another during the incident. Toledo Police Lieutenant Dan Gerken is asking attendees and eyewitnesses to look through their phones and photos to see if there's something that could help investigators identify the shooters.

10:23Talk to your kids. There's kids out there that probably know more than all of us standing here, right? So if they can help us out, that'd be great. Lieutenant Gerken says the ages of the victims range in age from 14 to 61, with most in their early 20s. European leaders called on Russian President Vladimir Putin to agree to an immediate and complete ceasefire that allows talks to begin on a lasting peace deal. Britain, Germany and France made the intervention after a meeting with Ukrainian President Volodymyr Zelensky at 10 Downing Street in London, hosted by UK Prime Minister Keir Starmer. Zelensky also told Sky News about the public letter he sent to Putin asking for a face-to-face meeting to open up negotiations to end the war.

11:10He said many several times publicly that he's ready to speak and he wants to stop this war. And he said about it publicly, but he doesn't feel that the readiness of Kiev. Last week, Putin rejected a ceasefire proposal by Ukraine. Police in Philadelphia are looking for the thieves who stole nearly a half a million dollars worth of bourbon from a warehouse. The Noble Oak bourbon was being stored there and was supposed to be shipped to a location in northern New Jersey. A21 Wine and Spirit COO Rob Koch says some thieves stepped in and conned their way into taking the bourbon. Unfortunately, rather than going through the regular security protocols, the warehouse did not have all of the things they needed to actually release that product.

12:05A21 Wine and Spirit CEO Rob Koch says the thieves didn't even really know what was in the shipment. Global News, 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg. Thanks, Michael. Time now for our Bloomberg Sports Update. and for that we bring in John Stashauer. Thanks Karen, the hottest of tickets in New York. It's Game 3 of the NBA Finals tonight but the Knicks hosting the Spurs and New York leading the series 2-0. Stacey King who won three NBA championships with the Chicago Bulls and was a very popular color man where Bulls TV passed away.

12:40He was only 59. Alex Savera of a 29 won his first Grand Slam tennis title. It took five cents but he beat Flavio Caboli at the French Open. JT Poston won Memorial Golf in Ohio. Nellie Kord of the U.S. Women's Open in LA. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Ask yourself, what are your best people spending their time on right now? Expense reports, receipt chasing, month-end close that takes weeks. You become what you spend on, and that's not what you're building toward. Brex is the intelligent finance platform that eliminates that work before it starts.

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15:12Coast 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. The U.S.-Israeli war with Iran has now crossed the 100-day mark, and the prospects for an end to the conflict are facing their toughest test yet, with Israel retaliating against Iranian strikes. But President Trump says there is still a chance for diplomacy. We're very close to having a deal, and if we don't have a deal, we'll do it one way or the other. Either way, we win. That was President Trump in an interview on NBC's Meet the Press, heard Sundays on Bloomberg Radio.

15:48Joining us from Dubai this morning is Bloomberg Middle East correspondent Abir Abu Omar. We should clarify, Abir, that that interview was taped before the latest attacks. Can you catch us up on what's been happening over the last 24 hours? Good morning. Yeah, good morning, Nathan. So, look, I mean, you just said it. This is the 100th day mark for the war in the Middle East, and the situation seems to be regressing quite rapidly this morning. So this started yesterday, the escalation in the hostilities with Israel hitting Hezbollah targets or as they call them, terrorist targets in Lebanon. Hezbollah retaliating by hitting northern parts of Israel.

16:25And then Israel hits back to the capital Beirut, the southern suburbs of the capital Beirut, killing two people and drinks several others. And then this morning, after a phone call between President Trump and Prime Minister Benjamin Netanyahu, where President Trump told him to not retaliate against Lebanon or Iran, only a few hours after that and into the morning in the Middle East, we're seeing reports of attacks in Iran. Those include some Western cities in Tehran, including Esfahan and Karaj and Tabriz. And then a hit against a petrochemical plant in Iran as well, where officials had to evacuate personnel.

17:08Iran also hitting northern parts of Israel this morning. So the situation seems to be escalating quite fast this morning with really no end in sight at the moment. President Trump did say before this all unraveled that a deal is still imminent, that this is the interim deal or what we've been calling the interim deal, which is the MOU that would lead to the opening of the Strait of Hormuz and then an extension of the ceasefire for 60 days. But with all the hostilities that we've been seeing since the previous week, where also Kuwait and the GCC saw its main airport getting hit and suffering some significant infrastructure, one really questions how sustainable the ceasefire is.

17:50And the answer to that is, well, it's been pretty fragile over the past two months to begin with. But the escalations this morning bring into question some further complications that President Trump is going to have to look at once the U.S. is more awake. Well, we have seen signs of escalation in the past. We've seen Iran lob rockets at Kuwait and Bahrain in the past as well. What makes this latest escalation different, Abir? Well, for starters, the fact that this is a direct hit at Iran, right? So in the past or over the past week, what's happened is those hostilities against GCC countries have been sort of in the background.

18:35They haven't happened as significantly as they had last week, beginning of last week. But the conflict or the hostilities in Lebanon, for example, have been going on even since the April 8th ceasefire agreement was reached. This is the first such attack that you're seeing on Iran itself and not its allies in the region. And then even post those attacks that happened last week, President Trump did come out and say multiple times, as a matter of fact, that they don't impact, that those attacks, while they're not favorable. And he did say to Iran that you shot your missiles. That's enough. That's a direct quote from the president.

19:12He did say that those don't impact the wider ceasefire agreement. He said that representatives of Hezbollah, the militia in Lebanon that's getting attacked, that is backed by Iran. He said that he got calls from representatives that had agreed to the ceasefire, while the public line from Hezbollah was that they rejected the ceasefire that we spoke about that was agreed between Lebanese officials and Israeli officials. in Washington. But this time around, one has to really look at how serious those escalations are. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

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20:29I'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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