Iran's Economic Lifeline; Nvidia Earnings Preview

0:00Bloomberg Daybreak U.S. edition is brought to you by OTC Markets Group. OTC Markets' overnight platform for exchange-listed securities, Moon ATS, provides access to global securities in U.S. dollars from 8 p.m. to 4 a.m. Eastern, Sunday through Thursday. Learn more at otcmarkets.com slash moon. Moon ATS is operated by OTC Link LLC, a FINRA-registered broker-dealer, and is available only through participating broker-dealers. 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.

0:44It'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. Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChachiPT.com by selecting Work Mode. Available on Plus and Pro plans. Each morning, it's a new opportunity, a chance to start fresh. Up First from NPR makes each morning an opportunity to learn and to understand. Choose to join the world every morning with Up First, a podcast that hands you everything going on across the globe and down the street, all in 15 minutes or less.

1:27Start your day informed and anew with Up First by subscribing wherever you get your podcasts.

1:57That's after the U.S. announced dozens of new sanctions on Iran's trading partners in an effort to put more pressure on the regime. We get more from Bloomberg Middle East correspondent Abir Abu Omar in Dubai. What we know is that this is a framework that is temporary in its nature, and it's a mechanism to open the Strait of Hormuz or reopen the movement in the Strait of Hormuz in some fashion. Now, the two countries are set to have further negotiations over the next 30 to 60 days to carry out a more permanent solution to the Strait of Hormuz. But some things that stood out is, first, the fact that this is temporary.

2:31Second, is that this is an initiative that will also discuss who manages the Strait of Hormuz. Bloomberg's Zabir Abu Omar reports President Trump claimed yesterday that the U.S. Navy had cleared all mines from the Strait, but he provided no evidence of that. Iran says it is focused solely on the Hormuz talks with Oman and that they are independent of stalled negotiations with the U.S. on ending the war. And, Nathan, the trade war between the U.S. and Canada is heating up. A White House official says the Trump administration is discussing higher tariffs and other trade actions now that Canada has answered 50 percent tariffs from the U.S.

3:05with dollar for dollar duties of its own. Bloomberg Global Trade Editor Brendan Murray has more. President Trump has already said that come January 1st, we're going to raise tariffs even further. But January 1st is a long time. And you would think that President Trump, who has sort of a knee-jerk reaction in a lot of instances, would have done that sooner. And so I think that was a signal that he wants some sort of time to figure things out. Bloomberg's Brendan Murray reports Canada's counter tariffs don't take effect until September 8th, though they will hit U.S. exports from key battleground states like Michigan, Pennsylvania and Ohio.

3:43Ontario Premier Doug Ford was one of the first to remove American alcohol at the start of the trade war. Now he's calling for compromise with President Trump. He was throwing insults. He's not trying to throw insults to anyone. And I hit back, but I think it'd be more productive if we actually sit down and the prime minister and the president sit down and have a fair deal for everyone. Because right now there's not certainty in either country. There's not stability. Ontario Premier Doug Ford appeared on Bloomberg's Balance of Power. You can catch the full conversation on the video hub at Bloomberg.com and the Bloomberg Business app.

4:20Well, now to election politics on this side of the northern border. Darlene Graham has won the Republican nomination to replace her late brother, Lindsay, in South Carolina's general election ballot for U.S. Senate. At her victory party, Graham thanked President Trump. I want to thank President Trump for all of his support and his endorsement. Mr. President, Lindsey truly loved you and viewed you as one of his closest friends. I appreciate that bond and appreciate all that you've done for our country. And now Darlene Graham defeated Congressman Ralph Norman in yesterday's special Republican primary runoff, 52 to 48 percent.

4:57She will now face Democratic nominee pediatrician Annie Andrews in November. And a candidate with the same name as Alaska's incumbent senator has advanced to the general election. Dan J. Sullivan, who goes by Dan Sullivan, was among the top four finishers after the August 18th primary and moved on to the November matchup, which is a ranked choice contest. The incumbent Republican Senator Dan Sullivan and Democratic former Representative Mary Piltola also have advanced. Ahead of the November midterms, Alexis, congressional Democrats and civil liberties groups are taking new legal action against President Trump's mail-in voting restrictions.

5:33They allege the president's proposed rule exceeds the U.S. Postal Service's authority and creates impossible burdens for the midterms. The new filings come a day after the Supreme Court unblocked the federal ballot mail portal rule in a separate case. The ruling does not guarantee that program will be in place for this year's election, but the proposed rules would require states to provide the federal government with voter lists and then use special barcoded envelopes for mailed federal ballots. And now to a Bloomberg-exclusive. Meta platforms and state attorneys generals have discussed settling their high-profile social media case.

6:08Bloomberg's John Tucker reports. Meta is accused of deliberately designing Facebook and Instagram to addict teens. The case poses an enormous risk for the social media giant as 29 states are seeking financial penalties and mandatory changes to how the platform operates. Meta has denied the state's allegations and accused the attorneys general of seeking unreasonable design changes and an outlandish payout. A lawsuit trial, which is now in its second week, could result in penalties of as much as$1.4 trillion for Meta, while a settlement would likely amount to a far smaller sum. I'm John Tucker, Bloomberg Radio.

6:45John, thanks. Let's turn to the markets. Now, futures are mixed ahead of highly anticipated earnings today from NVIDIA. Bloomberg's Charlie Pellett has more on what to expect from the chip giant. NVIDIA is expected to report another quarter of blockbuster profit and sales with a growing role in orchestrating funding for AI projects. Investors also want to know whether AI demand can sustain the stock's valuation. Andrew Cry is co-CIO at Crescent Grove Advisors. I think there could be an element where we've seen so much pressure on the stock now over the last several days that it could be a little bit of a coiled spring post earnings announcement.

7:20The stock has now fallen for seven straight sessions. Also reporting with NVIDIA will be Salesforce, CrowdStrike and HP, Inc. In New York, Charlie Pellett, Bloomberg Radio. All right. Thanks, Charlie. And after investors digest earnings from NVIDIA, they have another possible market moving event to look forward to. And that is Kevin Warsh giving a highly anticipated speech at Jackson Hole on Friday. Sarah House is senior economist at Wells Fargo. Obviously, we all have to pay attention to this speech because at times it has been used to give some pretty important policy hints. But more often than not, it's used to address some of the bigger questions out there.

7:56And while I think there has been some pushback about Chair Warsh's communication so far, he's a less is more guy when it comes to laying out his reaction function. And we're still only three months in, so I don't think he's going to abandon that strategy. Wells Fargo's Sarah House. Join us this Friday for a special edition of Bloomberg Surveillance. Live from the Jackson Hole Economic Symposium, Tom Keene, Lisa Abramowitz, and Michael McKee speak with Fed experts on the path forward. It all starts Friday, 9 a.m. Wall Street time on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business app.

8:29Well, this morning, Alexis, the world is remembering and paying tribute to music and film star Dolly Parton. Working nine to five, what a way to make a living. Dolly Parton's career spanned decades with hits like this one, 9 to 5, Jolene, I Will Always Love You, so many more. Born in Tennessee, Dolly Parton rose from those humble beginnings to become a country music icon and philanthropist. Her imagination library has donated more than 200 million books to needy children. Back in 1982, Dolly Parton spoke with Barbara Walters about what she wanted to accomplish. I want people to know there's some brains beneath the wig and a heart beneath the boobs.

9:10And I think people are beginning to see that. Dolly Parton died in Nashville yesterday. Her team says she had a brief battle with cancer. And President Donald Trump has ordered American flags to be flown at half staff for a week in her honor. Dolly Parton was 80 years old.

9:30509 on Wall Street. Time now for a look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael Barr. Michael, good morning. Good morning, Alexis. In Massachusetts, one more day of rebuttal testimony is expected in the trial against Lindsay Clancy, followed by closing arguments likely on Thursday. The jury, which will likely begin deliberations on Friday, will decide whether the Massachusetts mother was experiencing postpartum psychosis when she killed her three children in their Duxbury home in January 2023. Yesterday, prosecutors called forensic psychiatrist Gregory Savoff.

10:06What was very unusual was the fact that the voice stopped with the death of or the strangling of her of of her youngest son. Audio courtesy of WCBB. Pennsylvania Governor Josh Shapiro is urging people to get vaccinated for measles as his state combats the worst measles outbreak in more than 30 years. In a news conference, Governor Shapiro says that the vast majority of cases are among people who aren't vaccinated. This disease does not respect county lines or religious lines. It goes after all who are unprotected. Two unvaccinated people who have died of measles in Lancaster County, Pennsylvania, marked the first U.S.

10:57deaths this year. In New York, a new state law prohibiting local police agencies from cooperating with federal immigration enforcement took effect on Tuesday. Governor Hochul spoke about the new ban from Albany. Local cops cannot be ordered to aid in an event, an out-of-control agency with an$85 billion budget. However, not all local agencies have complied with the legislation known as the Local Cops Local Crimes Act, including Nassau County. Global News, 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg Alexis. Thanks, Michael. Time now for our Bloomberg Sports Update.

11:35And for that, we bring in John Stashauer. As the Tour Championship gets ready to begin, big news about the future of the tournament. The PGA announcing that in 2028, it'll be a two-week event at two different venues and it'll be match play. After the surprising news of a couple of players having been in NFL training camps getting cut and then going back to play in college at LSU. The Big Ten announced they will not allow any school to do that, and the SEC followed suit. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this.

12:13Coast to coast on Bloomberg Radio. Nationwide on Sirius XM and around the... Bloomberg Daybreak U.S. Edition is brought to you by OTC Markets Group. Thinking about joining the exploding overnight market space, but unsure where to start? Designed to meet the needs of a growing international investor base, OTC Markets' overnight platform for exchange-listed securities, Moon ATS, provides access to global securities in U.S. dollars from 8 p.m. to 4 a.m. Eastern, Sunday through Thursday. Extend your trading day and trade global securities in U.S. dollars through a FINRA-licensed broker-dealer. In the first half of 2026, over$28.1 billion US dollars traded on Moon ATS.

12:54Learn more about Moon ATS. Visit otcmarkets.com slash moon. Moon ATS is operated by OTC Link LLC, a FINRA-registered broker-dealer. 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.

13:37Put ChatGPT to work on your most ambitious ideas and projects. Get started at chatgpt.com by selecting Work Mode, available on Plus and Pro plans. Each morning, it's a new opportunity, a chance to start fresh. Up First from NPR makes each morning an opportunity to learn and to understand. Choose to join the world every morning with Up First, a podcast that hands you everything going on across the globe and down the street, all in 15 minutes or less. Start your day informed and anew with Up First by subscribing wherever you get your podcasts. The world on Bloomberg.com and the Bloomberg Business App.

14:15This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. While the U.S. is ramping up economic pressure to try to bring the Iran war to an end, Iran appears focused on asserting control over the Strait of Hormuz. Tehran says it is still in talks with Oman on managing shipping through the crucial waterway. Joining us from Dubai with more on this is Bloomberg Middle East Breaking News team leader, Dana Kresh. Dana, these talks have been going on for so long now. What is the latest on the discussions over the strait? Good morning. Yes, you're right. Oman and Iran have been negotiating to ease tensions through Hormuzin.

14:47Yesterday they said they discussed, and it doesn't seem we have an agreement yet, on an interim framework to set up a joint route that's administered by both and a plan to clear minds there. And they said there were technical talks regarding another permanent route. And, you know, it seems that Oman and Iran are trying to reach an agreement. And they said that they were also in talks with regional states. And, you know, that includes, of course, Gulf countries to try to come up or come to an agreement that can ease tensions and let shipping flow again. Well, it's interesting to hear the Iranians and the Omanis talking about clearing mines through the strait when we heard President Trump yesterday saying that the U.S.

15:35Navy has cleared all mines through the strait. Do we have any evidence of that, Dana? I don't think so. I think that there is a lot of skepticism about whether the mines had been cleared as per President Trump's claim. And I think he said that before. And I think the Europeans were also invoiced skepticism that they were cleared. And we see now Oman and Iran saying that we have to clear mines, and they have apparently a plan for that. And the route will probably go around that before it is clear that the ships can go through. And if there are discussions that are happening with other regional partners, how does that square with what we heard from the Treasury Secretary, Scott Besant, this week, that the U.S.

16:22wants to put more pressure on, you would think, many of those same regional partners. Exactly. Well, Qatar yesterday said that they were also trying to get regional countries, as in the Gulf countries, to be part of this agreement. And so did the Omani foreign minister. He said he would discuss navigation. And this is, of course, more like Oman's attempt to stay within that regional framework and not be isolated because it is trying to come to an agreement with iran and not be isolated by by the us as well and this is of course vis-a-vis the whole sanctions that um or the secondary sanctions and more sanctions that the us is planning uh to place on on iran and that puts these regional countries maybe in a difficult position but um the uae in specific said they've already cut uh commercial and trade ties with iran and we had qatar yesterday saying that they already abide by international standards and sanctions, and the U.S.'s decision was unilateral yesterday.

17:25And they're in between here, but I think most of them are U.S. allies, and they will have to kind of pick a camp, and it's obvious what that camp is. 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. Plus, listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces.

18:08And 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 Alexis Christophorus. 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.

18:34Have you ever wondered how Jesse Cole took the Savannah Bananas from this? We had a$6 million failure last year. We're going to have bigger ones as we go. To this? We've got shareholders, investors that reach out to us regularly. And the answer is always no. Or why Elle Duncan would say this about a Netflix sports broadcast. Sometimes we're going to take really big swings and we're going to freaking whiff. Then the deal is the show for you. It's a Bloomberg podcast hosted by me, Alex Rodriguez. And me, Jason Kelly. We talk to the biggest names in the world of sports and business, including NBA Hall of Famer Tracy McGrady on one of his biggest blunders.

19:09I think I've created something magical. Mm-hmm. Well, I struck out. And you'll even get some of my baseball hot takes. I've had owners tell me, it doesn't matter, the game has to be fixed, it's broken. If we have to lock out the whole year, we will. New episodes air every Thursday. Don't miss out.