Moderate Democrat Projected to Win Wisconsin Primary; Trump Claims Hormuz Control

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. Healthcare doesn't always work great. If you've ever waited on a refill or couldn't schedule an appointment, you get it. That's the kind of stuff Optum is changing. They're using data and technology to integrate patient care, pharmacy, and everything else.

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1:29Bloomberg 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'll begin with results from the latest key primary races, starting in Wisconsin, where an upset in the Democratic governor's race could check the momentum of the party's progressive wing. With 98 % of votes counted, moderate David Crowley is projected to defeat Democratic Socialist Francesca Hong, 39.8 to 39.4%. Hong addressed her supporters last night. To people in every corner of this state, it is an honor of my lifetime to be your candidate for governor.

2:16But this morning, Francesca is projected not to be the candidate for governor by a narrow margin. Now, that highlights the strength of the Democrats' progressive flank, but Crowley's win may offer a path for establishment Democrats to reassert power in primaries over the next month. Well, Nathan, in other notable primaries overnight, Senator Darlene Graham will advance to a runoff to replace her late brother, Lindsey, as the Republican nominee in South Carolina. With 33 % of the vote, Graham will face Congressman Ralph Norman in the August 25th runoff. Norman took 25%. The eventual winner will face off against a Democrat, Annie Andrews, in November.

2:54And in Minnesota, Karen, MyPillow founder and 2020 election denier Mike Lindell is projected to lose Minnesota's Republican primary for governor to state House Speaker Lisa DeMuth. With 99 percent of votes counted there, DeMuth has 43 percent compared to 33 percent for Lindell. He questioned those numbers in remarks to supporters last night. I'm not going to sit by until these numbers are explained. Someone's going to have to explain to me why we were polling seven to nine and these numbers came in. Lindell's projected loss follows an endorsement from President Trump. The result sets up a general election clash between Lisa DeMuth and Democratic Senator Amy Klobuchar for governor.

3:34Klobuchar won her primary with 90 percent of the vote. Let's turn now, Nathan, to escalating rhetoric with the war in Iran. President Trump said the U.S. has total control over the Strait of Hormuz and that Iran would get blown away if it took action. The president says he has no trust for Iran. Iran is going fine, going just absolutely fine. We totally control the Strait of Hormuz. We have control over it. Nobody else, only us. Our Navy is unbelievable. And things are going great for our country. President Trump spoke to reporters outside Air Force One. Pakistan's defense minister says the two sides are close to some sort of arrangement over Hormuz, but he isn't offering details.

4:19Karen, oil prices are grinding higher amid skepticism over an Iran deal. Brent is now trading right around$89 a barrel after jumping around 12 % over the past five sessions. This morning, the International Energy Agency says global crude inventories will tumble this quarter at more than twice the previously estimated rate. Noam Raiden is senior fellow at the Washington Institute for Near East Policy. It is unlikely that we're going to go back to the maritime arrangement that existed in the Strait of Hormuz before the Iran war. Iran has gained immense influence in the Strait. It will not let go of this leverage it has obtained easily.

4:57Noam Raiden with the Washington Institute for Near East Policy and Bloomberg Intelligence says a frozen U.S.-Iran conflict is now the most plausible scenario. and that could push oil into a range of$100 to$150 a barrel. Nathan, President Trump said security officials ordered him to secretly switch planes after a NATO summit in Turkey because of a threat to his safety. The elaborate maneuver, first reported by the Washington Post, was prompted by an Iranian assassination threat against Trump. The deception was carried out as journalists, White House staff members, and other government officials aboard Air Force One were given the impression the president was flying with them back to the U.S.

5:35from a NATO summit in Ankara. President Trump was asked about the incident by reporters. I go by Secret Service and the military. They wanted me to go on a different flight, a different plane, equal safety, but they wanted me to do it, so I do it. I do what they say. The incident has raised questions about the White House misleading the public over the president's whereabouts. Let's turn to the markets now, Karen, with a focus on tech. We're watching shares of CoreWeave in the pre-market. They're of 18 % following earnings. Booming AI demand helped the company's second quarter revenue more than double, and it raised its full year outlook as well.

6:12Gil Lurie is head of tech research at DA Davidson. He says CoreWeave's results are an encouraging step. It's incrementally positive. There is still a really big question about whether we even need neoclouds, whether they're a good business. The base of it is, are they getting a good enough return on investment to pay for the very expensive capital that they have to borrow. VA Davidson's Gil Luria core weave has become a bellwether for the AI data center boom. Well, also on the AI earnings front here, Nathan, a super microcomputer gave a revenue forecast for the current quarter that topped analyst estimates.

6:47A sign the AI continues to bolster sales of the company's servers. The company's benefiting from surging demand for gear to train and run AI tasks with its servers fitted with NVIDIA chips that have powered the vast majority of AI data centers. Supermicro has looked to boost margins by selling more profitable products and trimming costs. And this morning, shares of Supermicro, they're up almost 9 percent. Investors are also focused on the economy this morning, Karen. We get a key inflation reading before the opening bell. July consumer prices will be in focus as higher oil prices raise concerns that the Fed will need to hike next month.

7:24Treasuries are steadying with the yield on the 10-year right around 4.68%. David Rosenberg with Rosenberg Research says even after today's reading, the Fed won't be raising. I think the inflation prints outside of oil are going to be very benign. I think core inflation will be heading down. And I think the big surprise will be just how weak the economy is going to be. I think people tend to forget that because of the one big, beautiful bill, the U.S. household sector at an annual rate had a tax benefit of over$90 billion. People talk about, oh, how resilient the consumer's been. Yeah, there was a reason for that.

8:04But that's not in the rearview mirror. David Rosenberg of Rosenberg Research tells Bloomberg's Tom Keene a softer reading could alleviate some concern after three Fed officials dissented last month in favor of a hike. And markets overseas, Nathan, a split between the U.S. and Japan over Bank of Japan policy risks undermining efforts to support the yen. The Prime Minister, Senai Takeishi, is wary of raising rates too quickly, while U.S. Treasury Secretary Scott Besson sees tighter policy is crucial. The yen has already given back some gains from the first coordinated U.S.-Japan intervention since 1998.

8:40Expectations are building for another BOJ rate hike in September or October as the yen again nears 160 to the dollar. Now we want to get you updated, Karen, on the latest from the deadly earthquake in Colombia. The death toll has risen to 190. That's according to the nonprofit Oso Capitales. Much of the damage is concentrated in impoverished and poorly built neighborhoods. Woods. Rescue workers in Pereira are using audio equipment to listen for sounds of life beneath the rubble from Monday's 7.4 quake. Colombia's president has promised to suspend utility bills for three months in affected areas, and he announced the government will provide temporary rental subsidies to families whose homes were damaged.

9:23Time 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. Several hundred Ukrainian drones struck Russia's southern port cities overnight. They include Russia's largest Black Sea oil export hub and home to a Transnet pipeline terminal. Satellite images show heat anomalies, likely indicating fires in the port area. Ukraine's been targeting Russian energy assets in a bid to curb Moscow's ability to process and sell crude oil. A pretrial hearing for Luigi Mangione. Jurors will be kept anonymous when selection begins in early September.

10:02The judge says it's to avoid harassment, intimidation, or improper outside influence. Defense lawyers and prosecutors are now working out the questionnaire for those potential jurors for the trial that's expected to last at least six weeks. President Trump says his administration is exploring ways to block New York City's new tax on high-end second homes. That story from Bloomberg's Charlie Pellett. In a social media post, Trump argued that the so-called pied-a-terre tax pushed by Mayor Mamdani is driving wealthy residents out of the city, and the president warns it will destroy New York's tax base.

10:38Legal experts question whether the White House actually has the authority to step into a local tax matter, though the president is using the issue to escalate his attacks against the mayor ahead of November's midterms. A state judge has issued a temporary restraining order halting the tax following a lawsuit from local homeowners. In New York, Charlie Pellett, Bloomberg Radio. Immigration and Customs Enforcement officers may soon be outfitted with gloves that can deliver painful electric shocks. A notice published by the Department of Homeland Security says ICE plans to spend up to$20 million to purchase thousands of conductive distraction and de-escalation devices.

11:19global news 24 hours a day and whenever you want it with Bloomberg News Now. I'm John Tucker. This is Bloomberg. Karen. Thanks, John. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. The quarterback duel in Minnesota was won by the veteran Kyler Murray. He was the starting QB for seven seasons with Arizona. He beat out J.J. McCarthy, who the Vikings took in the first round a couple of years ago. The NBA season will start October 20th. The defending champion Knicks will host the Philadelphia 76ers. That'll be LeBron James' first game with his new team.

11:54Philadelphia's first home game will be two nights later against Cleveland. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this.

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12:43In the first half of 2026, over$28.1 billion U.S. dollars traded on Moon ATS. Learn more about Moon ATS. Visit otcmarkets.com slash moon. Moon ATS is operated by OTC Link LLC, a FINRA-registered broker-dealer. This is the Bloomberg Tech Minute brought to you by ChatGPT. Now with ChatGPT Work, I'm Carol Masser. DoorDash, the largest food delivery company in the U.S., is building its own delivery drones and has gained the necessary FAA approvals to operate them commercially, the latest in its effort to delegate more orders to robots as a way of cutting delivery times. Bloomberg's Natalie Lung reports the company says it has been conducting pilot programs with various restaurants, some of which have seen their order volume grow during the test period.

13:35The effort marks an expansion of DoorDash's in-house robotics efforts to reduce reliance on human couriers for some orders, as their wages constitute a key expense to the business. Drones are also a way for DoorDash to cut delivery times on orders from more remote locations that some dashers may not want. That's the Bloomberg Tech Minute brought to you by ChatGPT. Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChatGPT.com today by selecting Work Mode. Available on Plus and Pro Plans. Let's talk about healthcare for a second. It doesn't always work the way people expect it to.

14:14If you've ever waited on a prescription refill or had a hard time getting the care you needed, you know the feeling. The system should just work better for everyone. That's exactly what the people at Optum are trying to do every day. They're a healthcare company linking patient care and pharmacy services and using data and technology to drive the whole system so care is connected, not complicated. for patients and providers. Things like making it easier to get care that looks at the whole person, from primary care doctors to mental health support and even in-home care, and then using technology to make sure they all work together.

14:48Technology designed to help doctors spend less time on busy work and more time with their patients. And those prescriptions? Optum is working to bring costs down, save patients money, and make it easier to get refills. Little by little, Optum is helping make healthcare work as one for everyone. Head to business.optum.com to see how. Bloomberg.com and the Bloomberg Business app. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager on the morning after primary elections in six states. But a lot of the attention was on Wisconsin, where with just 98 percent of votes counted, moderate David Crowley is now projected to defeat Democratic Socialist Francesca Hong in the governor's race by just four-tenths of one percent.

15:34Hong was not ready to concede last night. I know we don't have the final results right now, but what I do know is that we are ready to keep fighting. And for more, we're joined by Terry Haynes, founder of Pangea Policy. Great to speak with you this morning, Terry. The polls going into this race showed Hong with a pretty significant lead. Are you surprised by how things turned out this morning? Good morning. Hi. Hi, Nathan. Good morning. You know, I'm not really surprised. I don't say that as some sort of sage, but I'm not really surprised. This candidate is very difficult at the best of times.

16:13And the fact that the incumbent governor got in and endorsed an alternative made a path clear. And sure enough, people rose to it. I'll be very interested to see the turnout numbers there. because that matters a great deal, and that's not just obvious. The turnout in Michigan Senate, for example, was very, very high with over 70 percent, yet the progressive El-Sayed did not win a majority of those votes. And in other places, like in the Virginia primaries last week, turnout was very low. So that tells you a very mixed, it gives you a very mixed picture of the Democratic electorate. So what does this tell us then about the ongoing debate that we've been seeing even before El-Sayed's win in Michigan last week about the direction of the Democratic Party after such a narrow win for Crowley in Wisconsin and a pretty more decisive result in the Minnesota Senate race for the progressive there?

17:22My view of this is that the Democratic Civil War has been going on since before 2020, and that a large part of what you saw in 2020 was accepting nationally, accepting a centrist in Biden at the top of the ticket in return for the progressive fundraisers and purists driving a lot of the agenda. And we saw that. And one of the things that we saw was Democrats losing the House in 2022, losing Congress and the presidency in 2024. But that battle continues. I'll give you three things. One is that the crazy train for Democrats still rolls on after Hong. They've been building this brand for nine months, and they'll keep doubling down.

18:08And Trump and the Republicans are going to keep pointing it out. I mean, that's what Trump exploring the P. Dutera action is about, both pointing that out to the electorate and pointing out to CEOs, you know, who's your friend? You know, it's not Mondani and the DSA folks. Politically, I'm still going to stick to my Republicans 60 percent likely to keep the Congress, but 80 percent likely to keep the Senate. There's enough of these races that have been infected by progressives and DSAs that makes the Senate in particular problematic. Finally, for markets, I think the consequences are much greater than they thought even a few months ago.

18:46This is about whether there's going to be animal spirits in 2027 versus whether there's going to be a Paul cast over by Washington through the 2028 election. 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.

19:30And 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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