Iran Says No Progress in US Talks, Knicks Take NBA Finals Game 1

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0:49Join us for solutions-driven discussions, interactive workshops and networking opportunities. Learn more at BloombergLive.com slash SBS dash Singapore. 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 from the Middle East. Israel and Lebanon have agreed to a ceasefire if Hezbollah stops fighting. that has emerged as a key condition for Iran in its nearly two-month truce with the U.S. Israel's U.S. ambassador Yehiel Leiter says this is an unprecedented agreement. We've brought the people of Lebanon to the understanding that we're not the enemy, Hezbollah is, and now we're going to work together to rid the country of this Iranian proxy on Israel's border.

1:46Israeli ambassador Yehiel Leiter spoke after the negotiations in Washington. Bloomberg Zabir Abu Omar has more from Dubai. Hezbollah has not given an answer yet to this. It could very well stop those hostilities and that could very well again answer the last sticking point between Iran and the United States. We reported earlier this week that Iran's sticking point of Lebanon particularly had hindered the progress of negotiations between Israel, the U.S. and Iran. Bloomberg Zabir Abu Omar reporting from Dubai. Meantime, clashes did continue overnight in southern Lebanon. Iran's foreign minister, Abbas Araqchi, says meanwhile there's been no recent progress in peace deal talks with the U.S.

2:29That's according to a report from Iran's semi-official Tasnim News Agency. Back in Washington, Nathan, President Trump's war effort has taken a political blow. The Republican-led House has approved a resolution to stop the war. On this vote, the yeas are 215 and the nays are 208. The concurrent resolution is adopted. Four Republicans joined with every Democrat present to pass the war powers resolution. Democratic Senator Jean Shaheen says she hopes this sends a message to the president. Now the House and Senate have both passed resolutions on the war in Iran with majorities that say the president needs to rethink his policy on Iran and needs to come to Congress.

3:12And New Hampshire Democrat Gene Shaheen appeared on Bloomberg's balance of power. This was the fourth time this year that Democrats forced a vote on the war and the first time they got enough support from Republicans to pass it. Karen, they're still counting the votes in the California governor's race more than 24 hours after the polls closed. With 58 % of precincts reporting, Republican Steve Hilton is maintaining a lead with 27.6 % of the vote. He's followed by Democrat Javier Becerra with 25.6%. Fellow Democrat Tom Stiers holding on in third with 19.8%. The top two finishers go on to the general election, regardless of party.

3:47In Los Angeles, Nathan, where voters also weighed in on mayor, early results suggested a runoff between Democratic incumbent Karen Bass and reality TV star Spencer Pratt, a registered Republican. California's heavy reliance on mail-in ballots means a final result could be days away. According to the Associated Press, with 63 % of the votes counted, Bass holds the lead with roughly 35 % of votes, followed by Pratt with about 30%, and City Council member Nithya Raman at 22%. If no candidate surpasses 50 % of the vote, the top two finishers will advance to a runoff. Well, let's move from California to New York, Karen, where Knicks fans are celebrating a comeback win in Game 1 of the NBA Finals.

4:29And Bloomberg's John Stash Hour is here with more on the game to remember in San Antonio. John. All right, Nathan, the Knicks trailed the Spurs by 14. the second half and they rallied back, led by their captain. Brunson keeps it alive. Bridges looks back to Brunson. Corner three is up. Bang! Jalen Brunson from downtown. And the Knicks take a two-point lead. And a call on ABC. Knicks scored the last 11 points of the game and they won 105-95. Brunson scored 30 points. The Knicks haven't lost in six weeks. 12 wins in a row. 7 straight on the road all in double figures. It's the Knicks first win in an NBA Finals game won in 53 years.

5:07Well, it's John Stash, Bloomberg Radio. All right, John, thank you. We turn out to the markets where the nine-day winning streak for stocks is over. The S &P 500 fell from a record and closed down three quarters of a percent. Goldman Sachs CEO David Solomon says investors have a lot to digest. We have a lot of things going on in the macro with the war, with the oil shock, supply chains, inflation getting stickier that are going to have an effect. And, you know, the market may absorb all that differently than it's absorbing it at the moment. At the moment, it's kind of brushing it aside. And Goldman Sachs CEO David Solomon made the comments on the latest edition of the Bloomberg Odd Loss podcast.

5:47Get the full conversation on Apple, Spotify, or anywhere else you download. And also on our new video hub on the Bloomberg Business app. Well, Karen, NASDAQ futures are leading declines this morning, and Broadcom is helping fuel the losses. that stock is down more than 13 % in early trading. The company delivered a disappointing forecast for artificial intelligence chip revenue. Gil Lurie is head of technology research at DA Davidson. This company has a big role in the growth of AI. It's just expectations were well beyond what consensus estimates were. And so a small beat just wasn't enough to keep the stock where it's at.

6:23And again, it's trading at a premium to NVIDIA. NVIDIA is trading in the low 20s on the next 12 months earnings. Broadcom is trading in the 30s on next 12 months earnings. DA Davidson's Gil Luria notes that shares of Broadcom are already up almost 40 % this year. Another tech high flyer, Nathan, also pulling back this morning. Shares of CrowdStrike down 11%. The cybersecurity firm's second quarter revenue forecast failed to impress investors who had bid up the stock in recent months. The stock was up almost 60 % this year ahead of earnings. Speaking of high flyers, Karen, SpaceX is closing in on the biggest IPO of all time.

7:01Bloomberg's John Tucker joins us with the very latest. John. And Nate, according to its latest filing, Elon Musk's SpaceX plans to market about 555.6 million shares for$135 each. That's$75 billion. And at that price, the company would be worth$1.77 trillion. dollars. The share sale now set for June 11th. Alex Morris at FM Investments expressed some concerns about the IPO. There's some knock-on effects. I do have some worries about elsewhere in the AI supply chain if they take all the oxygen away from everybody else. Well, the SpaceX offering should clear the path for other mega IPOs from OpenAI and Anthropic.

7:41Musk's decision to offer shares at a fixed price ahead of the order taking almost unheard of for sizable U.S. IPOs. SpaceX would be bigger than all but six of the companies in the S &P 500. I'm John Tucker, Bloomberg Radio. All right, John, thank you. While SpaceX's initial public offering will likely make President Trump's already wealthy administration even richer, 10 officials ranging from Special Envoy Steve Witkoff to Small Business Administration head Kelly Loeffler reported financial interests in Elon Musk's rocket company or his artificial intelligence firm XAI. In total, the federal staffers held SpaceX or XAI stock worth at least$9.9 million and as much as$43.8 million, according to the disclosures.

8:24Karen, JPMorgan Chase CEO Jamie Dimon plans to discuss SpaceX's upcoming debut with thousands of the bank's high net worth clients. Dimon will host a live interactive discussion later today from JPMorgan's headquarters. That's according to invitations seen by Bloomberg. Now, staying on Wall Street, Nathan, Bank of America CEO Brian Moynihan is talking about the affordability issue in America. Moynihan spoke with Bloomberg's Danny Berger at the Forbes Summit in New York. Affordability is a real issue, but to fundamentally change affordability, we're going to have to build more housing. So there's the supply pressure to bring the prices down.

8:58Affordability gas prices at$4.50 or above. We've been there before, so it is affordable. It's just not pleasant. You can catch our entire interview with Bank of America CEO Brian Moynihan on the Bloomberg Business app and on Bloomberg.com.

9:17Time 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. A burial team was attacked and 11 Ebola patients fled isolation facilities in eastern Democratic Republic of Congo. as the outbreak spread to another health zone in Eturi. However, the director of the World Health Organization says the response is catching up. Tedros Ananam-Gabriez has listed some challenges that remain, like scaling up testing and cutting back on delays in confirming cases. The number of suspected cases has now been reduced to 116 from over 1 ,000 last week.

9:59as we work through the backlog, either confirming them or ruling them out. Meanwhile, Kenya's health secretary says they will continue to work on an isolation and treatment unit at an air base in the East African nation that can be used to house U.S. servicemen exposed to the Ebola virus. Homeland Security Secretary Mark Wayne Mullen was questioned by the House Homeland Security Committee on ice enforcement operations. The current tensions at Delaney Hall in New Jersey came up. Protesters claim inhumane conditions inside the facility. Mullen claimed the protesters have been hostile toward his agents.

10:39Delaney Hall, I've had officers bit, hit, scratched. We had one get threatened that they were going to kill him and his family. That's peaceful. Delaney Hall, run by a private company, is being sued by New Jersey over conditions at the Newark facility. Incumbent New Jersey Congressman Tom Kane Jr. has missed a slew of votes since March 5th over what House Republicans say is a medical issue. House Speaker Mike Johnson says Kane told him what the issue was in a private phone call. Johnson says he needs a little longer to recover. Kane, who ran unopposed in Tuesday's primary, will face Democrat Rebecca Bennett in November.

11:16There were watch parties across New York City as the Knicks won game one of the NBA finals against the Spurs in San Antonio. There was one giant watch party outside of the Knicks home at Madison Square Garden. It's different being here in the atmosphere. Better than watching a game by yourself at home. This is a vibe. It's been represented for New York. More on the game and sports with John Stashower in moments. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg. Karen. All right, Michael Barr, thank you.

11:53And it is time now for the Bloomberg Sports Update. Let me get more with John Stashauer. John, good morning. Good morning, Karen. The NBA Finals opener was a game of runs. The Spurs, a 20-3 run in the first half. They went from down 7 to up 10. They built the lead to 14. And the Knicks then led by 8 with 5 minutes to play. But with less than 2 minutes to go, San Antonio back up by 1. That's when the Knicks scored the last 11. One game won 105-95. The 11-0 run. Six free throws and two huge hoops by Jalen Brunson, who scored 30 points. The Knicks coach is Mike Brown. He was the MVP in the second half.

12:27He was huge for us. He did what MVP candidates are supposed to do. He carried us home. We put the ball in his hands, and he got it done for us down the stretch. But a good win. We have to keep taking it one game at a time and stay present and see what happens. So now 12 playoff wins in a row. They won the opener in the last round when they trailed by 22. This time from 14 down, Josh Hart asked about the comebacks. Everybody in this locker room has had adversity, you know, and they wouldn't be here if they didn't, and they wouldn't be here if they didn't make it through that adversity. So whenever we're down, we don't panic.

13:05We continue to play our brand of basketball, and, you know, that's always, you know, that's cool. Hart had 15 rebounds. as Knicks held the Spurs to 36 % shooting. Victor Wimbanyama just 6-21. Game two tomorrow night at the stadium. The Yankees again without the injured Aaron Judge. Again lost to Cleveland. Guardians hit three home runs off Garrett Cole and won 5-4. Yanks stay a game behind Tampa Bay, who since winning 22-26 has lost 8-10. Mets had 14 hits and a 7-1 win at Seattle. Nationals lost a third straight to Miami 4-1. The Red Sox over Baltimore 8-1. Women's semifinals today at the French Open with all the upsets.

13:41Eight-seeded Mir Andreva, the highest-seeded player left. Diana Schneider back playing the day after her upset of top seed Arena Stabilonica. She was one game from losing, won the last 10 games. John Stashauer, Bloomberg Sports. Karen Hinton. Stay with us. More from Bloomberg Daybreak coming up after this. On June 10th, Bloomberg Invest is back in Hong Kong. We look at the role Hong Kong plays between China and the world as major powers compete and markets realign. As global investors rethink risk, we'll explore the forces driving Asian demand and the future of private capital. Catch exclusive interviews with top newsmakers, plus a live recording of Bloomberg's Odd Lots podcast.

14:24Visit BloombergLive.com forward slash InvestHongKong to learn more. Supporting sponsor, Deutsche Bank. Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. Iran peace efforts seem to be running through Israel and Lebanon this morning. The U.S. says both those countries have agreed to a ceasefire if Iran-backed Hezbollah stops fighting. But President Trump says anything can happen. And I'd say in that part of the world, ceasefires when you're shooting in a more moderate manner.

15:00That was President Trump speaking from the Oval Office. We're joined this morning for more by Mark Champion, who covers the Middle East for Bloomberg Opinion. And, Mark, great to speak with you once again. It is a pretty big if, if Hezbollah stops fighting, isn't it? Good morning. Good morning. Yes, absolutely. I mean, this is, in a sense, this is a good, it's a good step. You know, so what you want in Lebanon is for the Lebanese government to be making these kinds of decisions, to be filling the vacuum as Hezbollah is, you know, removed. And so it's a good framework. But there's a huge question as to whether Hezbollah would want to do that.

15:47You know, this war, they were very much on the back foot before February when the US and Israel attacked Iran. They had been badly damaged and they were looking quite weak politically within Lebanon. The war has actually, you know, given them more strength. They've started using FPV drones that are creating problems for the Israeli military. So whether they would want to kind of step back is a question, whether the Iranian is going to press them to step back, equally a question. So we just have to wait and see. We've been watching headlines just this morning that fighting seems to be continuing in southern Lebanon between Israel and Hezbollah as well.

16:30How important is this for Iran when it comes to their peace talk track with the U.S.? Very, very important. I mean, the Iranians have made clear throughout that they believe they're in a position where they can make demands. And one of the demands, key demands they have is that other theaters where their proxies are in conflict with Israel will be included in any peace deal. So in other words, if they're going to agree to a peace deal, Israel will have to agree to ceasefire in Lebanon. They've been less adamant about Gaza, but they've also mentioned Gaza at various times as another front where they want to see a ceasefire.

17:20So the question for the Iranians is how badly do they want a deal and how willing are they to carry on the conflict with the U.S. to keep the Hormuz straight closed on their side and the U.S. side, which hurts Iran, in order to get a kind of full ceasefire in Lebanon on terms that they want. 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.

18:13Plus, 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.

18:46On June 10th, Bloomberg Invest is back in Hong Kong. We look at the role Hong Kong plays between China and the world as major powers compete and markets realign. As global investors rethink risk, we'll explore the forces driving Asian demand and the future of private capital. Catch exclusive interviews with top newsmakers, plus a live recording of Bloomberg's Odd Lots podcast. Visit bloomberglive.com forward slash invest Hong Kong to learn more. Supporting sponsor Deutsche Bank.