Knicks Historic Comeback; Trump Promises Iran Attacks if No Deal

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1:17Bloomberg Audio Studios. Podcasts. Radio. News. Good morning, I'm Nathan Hager. And I'm Alexis Christophorus. Here are the stories we're following today. Alexis, we're going to have more on the markets. We'll bring you the latest on Iran in a moment. But we want to begin this morning with a historic night in sports. The New York Knicks are now one win away from their first NBA championship in more than a half century after an improbable comeback win at Madison Square Garden. Bloomberg's John Stashauer is here with more on the big win. John, what a night. Yeah, Nathan, not sure what was more astonishing, the comeback or the game-winning basket.

1:56The comeback was historic. Second half, the Knicks trailed the Spurs by 29 points. They chipped away, got it down to 15, going into the fourth quarter, and Jalen Brunson put them ahead for the first time with a minute 22 to go, but then they fell back by one, had the ball with less than six seconds to go. Brunson gets it, fires up a three. Shot no good. The tip, it's gone. It's gone. It's gone. With 1.2 remaining. Knicks take the lead. OGN and Noby and it's 107-106 that was the final ABC had the call so now the series is 3-1 Knicks heading to San Antonio for game 5 Saturday while more on an incredible night at the Garden.

2:36Coming up in sports John Stashauer, Bloomberg Radio A miracle at MSG, thanks a lot John and of course a star-studded crowd witnessed that big Knicks win but there was not the usual Garden watch party outside the arena Bloomberg's John Tucker joins us now with more Good morning John Good morning, Alexis. Well, inside the garden, Nick's fever erupted among the A-list celebrities. Timothee Chalamet sounded like he was about to bounce off the rafters. Come on, it's the Knicks, baby! Knicks is fine, baby! Jalen Brunson, my God, baby! Taylor Swift was there. She likes the garden so much, she may get married there.

3:12She was seated courtside next to Ben Stiller. He's filming a Knicks documentary. As for the others, yada, yada, yada, Jerry Seinfeld, Larry David, Chris Rock, Tracy Morgan, Jimmy Fallon. You get the picture. Now, for the hoi polloi, just a few hours before the game, the watch party outside the garden was canceled. Knicks owner James Dolan pointed the finger at Mayor Momdani and Police Commissioner Tish. The mayor blamed Dolan, saying the move broke the hearts across the city. In New York, I'm John Tucker, Bloomberg Radio. Maybe a win heals all wounds. Thank you, John. Well, the Knicks aren't the only thing that's red hot right now.

3:46So is the weather in the Northeast. Bloomberg meteorologist Craig Allen has more on this heat wave. Craig. It's going to push temperatures up to about 15 to 20 degrees above average for at least three days. That's a heat wave. And heat advisories are being issued for many areas, including the I-95 corridor. Places like Washington, Baltimore, Philly, Newark, New York City could see the mercury upwards of 90 to 95. And the humidity has rapidly increased as well. So the heat index will likely be in the triple digits. The heat advisory pushes up through the Connecticut River Valley. Even Boston should hit 90 today.

4:25And Bloomberg meteorologist Craig Allen says this heat is going to last through the weekend. All right, now let's get to the latest from the Middle East. The U.S. has carried out a second straight day of strikes on Iran. That's after President Trump accused the country of dragging out peace talks. We're really close to a deal, but they keep tapping us along. They keep playing us for suckers because you know what? They dealt with some very stupid presidents. The president spoke with reporters in the Oval Office. Later, he told Fox News the U.S. will hit Iran again today if it doesn't sign a deal.

4:55We get the latest from Bloomberg Middle East correspondent Abir Abu Amar in Dubai. To break the stalemate, we assume the U.S. hit targets in Iran today that ended overnight. Iran retaliated again by hitting the U.S. fifth fleet in Bahrain. Kuwait closed its airspace momentarily as a precautionary measure. And then Jordan reported 20 missiles or so in its airspace. So we're seeing this tit for tat happening quite a bit more than it has been over the past two months or since the April 8th ceasefire was achieved. Meanwhile, Bloomberg's Abir Abu Ammar reports Iran is claiming the Strait of Hormuz is completely closed, but U.S.

5:36Central Command is rebutting that, saying commercial ships continue to transit in and out. Some producers have managed to move oil through the strait through so-called dark transits with their lights and transponders turned off. Alexis, President Trump's also weighing in on the economy after the latest Consumer Price Index showed prices rose by 4.2 percent in May compared to last year, the most in more than three years. I love the inflation. You know why? Because as soon as this war is over, you know, I can say it now, something you didn't know. Do you know we've been taking out millions of barrels of oil.

6:10Nobody knows it. You know who doesn't know about it? Iran until right now. President Trump's latest comments are a departure from his earlier argument that the affordability issue is a hoax started by Democrats. And now Democrats are seizing on his remarks. House Minority Leader Hakeem Jeffries posted on X, quote, we finally found something that Donald Trump loves as much as he loves himself. And Nathan, staying in the nation's capital, Microsoft co-founder Bill Gates testified on Capitol Hill in a closed-door hearing about his ties to Jeffrey Epstein. Bloomberg's Amy Morris reports from Washington.

6:41Gates told the House panel that he made an error in judgment by ever meeting with Jeffrey Epstein. The Microsoft co-founder said he was drawn in by Epstein's claims that he could help raise billions for global health initiatives. Most Democratic members on the panel described Gates as cooperative. Some described his behavior as a little combative. Republican Representative Tim Burchett of Tennessee says some of those questions were intense. It's pretty clear to me, though, that Epstein was a friend collector. You know, he just liked to have people around him that were big deal and get his picture made with him and hang out with him.

7:14And I think that's how he reeled them in. House Oversight Chair James Comer says he's planning to ask Attorney Alan Dershowitz to appear and that he wants acting Attorney General Todd Blanche to come in next month. In Washington, Amy Morris, Bloomberg Radio. All right, Amy, thanks. It's history in the making. We are just hours away from pricing for what will be the biggest IPO of all time. Let's get more now from Bloomberg Technology host Ed Ludlow. SpaceX will raise$75 billion at a valuation of greater than$1.75 trillion in a story that's been about pitching investors on the prospects of satellites around the Earth as data centers, orbital data center.

7:53That's the pitch the bankers have been making. That's the story that the market's buying into. It is oversubscribed. The institutional book is closed. Retail investors are clamoring to get a hold of it. And we get pricing late Thursday, trading on Friday in what will be the biggest IPO in history for SpaceX. Ed Ludlow, Bloomberg Radio. All right. Thanks, Ed. And new this morning involving two other companies set for huge IPOs. The Wall Street Journal is reporting OpenAI is considering drastically lowering the prices it charges users. It's in an effort to win customers from Anthropic. The paper says drastic price cuts could potentially erode the profit margins of both companies, which already lose billions because of the cost for computing resources needed for AI systems.

8:37Well, this morning, Alexis futures are higher following yesterday's sell-off on Wall Street. The Dow fell more than 950 points or 1.9 percent, but even harder hit was the Nasdaq. It fell 2 percent. This morning, futures are pointing to a recovery. Dow futures are up two-thirds percent right now. Now, Nasdaq futures up 1.2 percent and S &P futures are on the rise by three quarters of 1 percent. Well, Nathan, shares of Oracle not participating in this morning's turnaround. The stock is down about 7 percent. The company reported quarterly capital expenditures that were higher than estimates. Sarah Kunst is founder and managing director at Clio Capital.

9:12This is a company that people got excited about for a while with AI, but the bloom has sort of been off the rose. and I'm not shocked to see people wanting to see real numbers. And then when they're not thrilled with the results, they're selling a bit. Clio Capital's Sarah Kunst, Oracle expects to spend about$70 billion on net capital expenditures in the current fiscal year.

9:38509 on Wall Street, time 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. Good morning, Michael. Good morning, Alexis. Knicks fans are still giddy from last night's historic comeback, but there's other news to talk about. Congress has until tomorrow to approve an extension of the Foreign Intelligence Surveillance Act. It allows U.S. surveillance of foreigners. Some lawmakers are concerned about passing it, while Bill Pulte, who has no intelligence background, will be the acting director of national intelligence.

10:08President Trump says he is considering permanent candidates. House Speaker Mike Johnson called on lawmakers to support a short-term extension of FISA. He is in the process of interviewing the persons who would potentially be the next DNI. They're going to be highly qualified, all these potential nominees are. The House will try to vote today. British Prime Minister Keir Starmer is reacting to protests that erupted in Belfast, Northern Ireland, after a stabbing which ignited anti-immigrant demonstrations. a Sudanese man was accused in a stabbing attack. Starmer addressed Parliament Wednesday. The acts of violence and arson that followed are totally unjustified.

10:50P.M. Starmer urged for people to remain calm. An appeal is in the works for the Collin County, Texas, teen found guilty of murdering a rival track athlete from a neighboring school. 19-year-old Carmelo Anthony, who was 17 at the time, stabbed Austin Metcalfe as the two got into an altercation during a track meet. Anthony claimed he stabbed the 11th grader in self-defense. Anthony was sentenced to 35 years in prison. 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 brought to you by Flushing Bank, a division of Ocean First Bank.

11:27For that, we bring in John Stashauer and John, a historic night at the Garden. It was indeed, Alexis. The Knicks went into Game 4 of the NBA Finals hoping for a better start in each of the first three games. San Antonio and grabbed a double-digit lead in the first quarter, and this time it was way worse. A nightmarish first quarter for the Knicks. They trilled by one point by 21. They shot just 29%, made only five baskets. Spurs shot 65%. They built the lead up to 27 at halftime. They made 14 first-half three-pointers. The Knicks in the East Finals with Cleveland. Game one came back from 22 down, so they had done this before, and they mounted the historic comeback that ended with the epic OG Ananobi tip, and there was still some time remaining for the Spurs.

12:10No timeouts left. They have to get it in. Harper loves it inside. Castle hasn't lost it. That's it. It's over. The greatest comeback in NBA playoff history. The Knicks pull off a miracle comeback and lead it three games to one. On ABC, Brunson and Onanobi led the way to the 107-106 Knicks win as Brunson scored 36 points. OG had 33. He was the hero at the end. He spoke on ABC. We're resilient. We never give up. It's a game of runs. They win our run early. We knew we were going to go on our own runs, so we just stay with it and kept pushing. 29 points, though. When you're down 29, what were you guys saying to each other?

12:50We stayed with it. It's a game of runs. We believe in ourselves. We've come back before. We're battle-tested. We're mentally tough. We're a resilient group, so we just stay with it. The series does 3-1. The Knicks have three chances to win one game, and that'll start with Game 5 in San Antonio on Saturday. Stanley Cup Final continues tonight. Vegas and Carolina, Game 5. Series tied at 2. The World Cup begins today with two games in Mexico. In Cleveland, the Yankees finished a sweep of the Guardians 8-4. Jazz Chisholm and Trent Grisham both had triples. Jazz drove in three runs. Grisham scored three.

13:21Another lopsided loss for the Mets. St. Louis won 9-2 at Citi Field. John Stashauer, Bloomberg Sports. Alexis. Stay with us. More from Bloomberg Daybreak coming up after this. So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions. Not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business.

14:01Let's create smarter business. IBM. The Bloomberg Sustainable Business Summit returns to Singapore on July 22nd. Our fifth annual Asia-Pacific Summit will explore how business and finance leaders are shaping the next phase of globalization by strengthening resilience, advancing climate adaptation, and driving a multi-speed energy transition across Asia's diverse markets. Join us for solutions-driven discussions, interactive workshops, and networking opportunities. Learn more at BloombergLive.com slash SBS dash Singapore.

14:59chance to make a good deal, a great deal, to codify what they said they've been willing to do and they haven't been willing to do it. Defense Secretary Pete Hegseth spoke at CENTCOM headquarters in Tampa, Florida. Joining us this morning is Mark Champion, who covers the Middle East for Bloomberg Opinion. Mark, we've heard a number of figures in the Trump administration saying they want to exert maximum pressure on Iran to bring a deal forward. Is there a sense that these latest attacks will get Iran there? Good morning. Good morning. Well, there's very little evidence to suggest that it will. This is kind of a long process.

15:34These are kind of the most serious attacks that we've had during the ceasefire, but there have been an awful lot. It's clear that the oil markets think that, you know, this will just be another episode and we'll be back to this sort of, you know, unstable equilibrium, neither peace nor war with no deal, but no kind of resort return to total war. But it's very unstable. And that was the point when the Apache helicopter was shot down, you know, the U.S. suddenly had to respond. And it's responded in a pretty, you know, reasonably tough way. Now, they're threatening to, you know, bomb much harder and essentially end the ceasefire if Iran doesn't, you know, sign a deal by Friday.

16:28That signature seems unlikely. But, you know, this is a very unpredictable kind of conflict. To your point, the process, as you say, has been long. But with the president saying he'd like to see a deal signed by tomorrow, his patience is very short. Do you see a risk here of escalation, given all that? There is a risk. He clearly does not want to return to full war. It really isn't clear what the U.S. would be able to achieve if it does. And they've already run through a lot of stocks. There are costs to this. Iran does have ways of retaliating and inflicting pain, not just on the U.S., but on its allies in the Gulf and on the global economy.

17:13And this is the reason that we had the ceasefire in the first place. Nothing has changed there. It's just that the Iranians will not or have not been willing to bend to the terms that Trump thinks are necessary in order for him to walk away and say, I won. Just 30 seconds left, Mark. Where do you see the status of back channel talks right now? They're going on. The Qataris are just coming back from Tehran. They've been talking to the Iranians. The Pakistanis are still involved. They're talking to the Iranians and the Americans. You know, they are going on. It's just a very difficult proposition.

17:49Essentially, the Iranians are saying, we want control of the Strait of Hormuz. We want money and we want various guarantees, including for Lebanon. And the U.S. simply, you know, is on a different track in terms of the kinds of terms that it's looking for. And there essentially, you know, is the problem. Trump keeps saying that we're close to a deal. We haven't been. 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.

18:26Wall 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. 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 Alexis Christophoris. 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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