Oil Surges Past $100 on Tanker Attacks; Apple to Unveil Foldable Phone

0:00Some 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. Put 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.

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2:13That's after the U.S. destroyed five Iranian oil tankers. in response to an attempted ballistic missile attack on a U.S. Navy warship. Secretary of State Marco Rubio says the tit for tat should come as no surprise. The back and forth is pretty straightforward, and that is that Iran continues to try to hit U.S. naval ships. And for every time they do that or try to do that, they're going to lose tankers. Secretary of State Rubio spoke to reporters in Colombia. We get more from Bloomberg News Energy reporter Stephen Stepchinsky. It does seem, at least with the rhetoric, the traders are interpreting this rhetoric between the U.S.

2:46and Iran as a further spiraling away from a peace deal and threatening the flows of oil that have been getting through Hormuz. I mean, there has actually been quite a large increase in dark flows of oil going through the waterway, potentially six to eight million barrels per day, according to the analysts and traders that my colleagues have spoken with. Still not near pre-war levels, but definitely much higher than we were just a few months back. Bloomberg's Stephen Stapchinski reports China has also been increasing its crude purchases in recent days. A pause in Chinese buying had kept a lid on prices early in the conflict.

3:24But right now, Brent crude is at$100.29 a barrel. That is a gain of 2.4 percent on the session. West Texas Intermediate is up 2 percent at$94.87. cents. Well, Nathan, the U.S. trade war with Canada is escalating. The Trump administration is moving to block imports on certain Canadian products while slapping new tariffs on others in response to Canada's counter tariffs. We get the details of the Bloomberg's Rosalind Matheson. What we're seeing is U.S. moving to ban imports of certain things, primarily dairy and alcohol, which is unsurprising in a way because Donald Trump was annoyed about some Canadian provinces barring U.S.

4:03alcohol. You've also got an extension of these Section 338 tariffs to other items now, including things like golf carts, bed mattresses and so on. And the tariffs are due to take effect in a week, the import bans in three weeks, according to administration official. And Bloomberg's Ross Madison reports President Trump is also moving to cut Canada out of U.S. government contracts under what's known as the multiple awards schedule. Canada's trade minister says he's in contact with U.S. Trade Representative Jamison Greer, and Ottawa is assessing Washington's next move. Now, Karen, let's turn to the latest in midterm politics.

4:39New Hampshire has just held its primary election in the race for retiring Senator Gene Shaheen's seat. Democratic Congressman Chris Pappas held on to beat progressive Karishma Manzoor 65 to 33 percent. We launched our campaign to make life better for families and small businesses, to challenge extreme politicians and corporate special interests and the billionaire class. Democrat Chris Pappas will now face former Senator John Sununu. In November, he won the Republican primary over former Massachusetts Senator Scott Brown, 68.5 to 27 percent. This race, as I know, is about the future. It's not about today or tomorrow or even next year.

5:18It's about the next six years. Where does the country go? Republican John Sununu is heading to November with a sizable war chest and President Trump's endorsement, though he's tried to downplay that on the campaign trail. Pappas has warned Democrats can't take a New Hampshire victory for granted. The data tracking group Ad Impact says Republicans plan to spend nearly twice as much in New Hampshire as Democrats do. Separately, Governor Kelly Ayotte easily won her Republican primary with 92 percent of the vote. She will face Democrat Cindy Warmington, who ran unopposed. And Nathan, today is primary election day in Rhode Island.

5:52Democrat Dan McKee is hoping to avoid becoming the first incumbent governor in any state to lose his primary since 2018. He's facing a competitive challenge from a former CBS executive Helena Foulkes. McKee narrowly defeated Foulkes in a multi-candidate Democratic primary four years ago. Let's turn to markets now, Karen. Treasury Secretary Scott Besant is stepping up efforts to exert influence across global exchanges. At an event in Texas, he challenged traders to test his resolve on boosting the Japanese yen, saying he has insight into what the Bank of Japan will do. Besson dared markets to bet against him.

6:29Whenever people say, oh, well, Treasury Secretary is taking a risk, well, it's my dream. I have asymmetric information. I am the house now. When we intervene with the Japanese yen, I have pretty good insight into what the Japanese, what the Bank of Japan is going to do, what Japanese policymakers are going to do. And you can bet against me if you want. Treasury Secretary Scott Besson's comments were among his most strident yet in an extraordinary campaign to bend markets to his will. The former hedge fund executive surprised market participants last month with plans to ramp up buybacks of U.S.

7:08Treasuries. Well, Nathan, it's going to be a busy couple of days on the economic front. Tomorrow, we will get the producer price index for the month of August. And on Friday, it's consumer prices. And that's followed next week by a Fed policy decision. Jim Caron is chief investment officer of Cross Asset Solutions at Morgan Stanley Investment Management. The markets have priced that there's a 60 percent probability that the Fed's going to hike rates next week. My view is that they will not. But clearly, that's highly dependent on what happens on Friday when CPI gets released. If they hike interest rates, how many times do they hike interest rates going forward?

7:44In other words, if they hike next week, does that start a campaign of four to six rate hikes going forward? Or is it a signal that, well, this is just a fine-tuning? And Mark and Stanley Investment Management to Jim Caron there. The Fed decision comes a week from today. Well, today, Karen, the eyes of the tech world are on Cupertino, California. Apple is set to debut a roughly$2 ,000 foldable iPhone. The device represents the biggest single design change in the nearly 20-year life of the iPhone. It'll also be John Ternus' first major product launch as Apple CEO. Mark Gurman covers Apple for Bloomberg News.

8:23Let's be honest. Ternus has been there the last 25 years, and he was the hardware chief for the last five, six years. And so he has been there, and I'm not sure there's been anything under his watch that he was unable to do with Cook as CEO, right? So I don't think anything is going to change in terms of being wholly new immediately. It's going to be a while till we really see the impact of Ternus as CEO. Along with that foldable iPhone, Bloomberg's Mark Gurman expects Apple CEO John Ternus to also announce new editions of the Apple Watch and AirPod. Well, Nathan, massive spending on artificial intelligence takes another step today.

9:02I'm Bloomberg. John Tucker is here with more. John, good morning. Yeah, good morning, Karen. Amazon kicking off the sale of bonds today that will, for the first time, be priced in pounds sterling. The maturities will range from 3 to 19 years. This sale is Amazon's fourth outside the U.S. dollar market. So why sell bonds in foreign currencies? That's because they can avoid overloading the U.S. bond market, spread out risk, and then meet demand with a whole new set of buyers. The sale is Amazon's fourth outside the U.S. dollar market so far this year. And Uber also getting in on the act. The ride-hailing company started offering its debut Eurobonds.

9:38That five-part deal also set to price later today. I'm John Tucker, Bloomberg Radio. All right, John, thank you. And Google is planning its biggest investment in Europe. It's an artificial intelligence infrastructure build-out in Finland worth at least$15 billion. The move is part of Alphabet's efforts to accelerate AI expansion of computing capacity. The Silicon Valley giant raised its capital spending forecast in July to as much as$205 billion this year in a race with rivals to dominate the AI landscape. And Nathan, meet Ask B, Bloomberg's conversational AI for company and markets research. Ask a question to analyze companies, uncover trends, and explore Bloomberg market intelligence alongside your firm's proprietary data.

10:24Type Ask B Go on the Bloomberg terminal or tap the Ask B icon in the mobile app. Time 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. According to the National Transportation Safety Board, the Amazon cargo plane increased thrust just seconds before it overran the runway and careened into two vehicles at Miami International Airport. NTSB investigator Chi Hunshin detailed the preliminary data recovered from the plane's black boxes. No indication in the recorded data that speed brakes or thrust reversers were deployed.

11:08The NTSB will interview both pilots to hear their accounts today. Sunday's crash killed five people on the ground. New York City Mayor Zoran Mamdani released more than 170 ,000 pages of records about the aftermath of the 9-11 attacks. The records include documents showing officials were weighing potential liability from toxic exposure while trying to reassure the public about the safety of lower Manhattan. Now, close to 25 years later, more people have died from 9-11 related illnesses than were killed on the day itself. It would be one thing if government had stood alongside survivors and provided them with everything they needed at every step of the way.

11:51And yet we know that could not be further from what actually happened. Mayor Memdani says the city is opening up a free portal where New Yorkers can access the documents. New developments in the Lindsay Clancy murder case in Massachusetts. For the first time since the trial ended in a mistrial, we're hearing from members of that jury. The foreperson told NBC10 Boston the lone holdout voiced his doubts about Clancy's guilt, but voted to convict her of murdering her children anyway. He admitted he had reasonable doubt. And then he said, but I'm still not going to say that she's not guilty by reason of insanity.

12:28The 11 jurors were convinced Clancy was in the throes of postpartum psychosis and not criminally responsible. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Karen. Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. The NFL season kicks off tonight. It's a Super Bowl rematch. It's the Patriots and Seahawks in Seattle. a day, a night, and a morning unlike any in U.S. Open history. Four singles matches, they all went the limit. Arena Sabalenko won a third set tiebreaker, then Francis Tiapo a fifth set tiebreaker.

13:05He trailed Alex Mickelson by two sets, Jessica Pagula won in three sets, and then Ben Shelton a five set tiebreaker to upset Carlos Alcor as the match ended at 3.30 in the morning. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. 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.

13:46So 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 ChatGPT.com 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. If 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.

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14:57Little by little, Optum is helping make healthcare work as one for everyone. Head to business.optum.com to see how. This is Alexis Christopoulos for Bloomberg Surveillance. AI is everywhere. Outcomes are not. Not because AI doesn't work, but because AI hasn't reached the workflows yet. The campaigns, the launches, the quarterly planning. Those workflows are still run by humans alone. AI is making individuals faster, but it's not making businesses more productive. That's the gap Asana is built to close. Asana is the operating system for human agent teams, your easy button for AI productivity across every team.

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16:17This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. New fighting in the Middle East is putting new pressure on energy markets with Brent crude back around$100 a barrel for the first time in more than a month Following the latest attacks, President Trump says he has one goal in mind. We're right now fighting because we have a certain nation that wanted a nuclear weapon. They were very close to getting it, and now they have no chance of getting it. Well, that was President Trump at a White House event before the latest attacks. And joining us now is Bloomberg News Middle East News Director Will Kennedy.

16:48Will, could you catch us up on what has been happening in the last 24 hours, whether we could see oil make a leg higher from here? Good morning. Good morning. Yes, we've seen an escalation in and around the Persian Gulf. Iran is said to have attacked some U.S. Navy ships, and the U.S. has retaliated by disabling and even sinking several Iranian tankers. So that conflict around shipping has definitely escalated, and the prospect for fighting over a longer period of time and escalating fighting fighting has clearly made crude traders nervous and sent the price back above$100 a barrel in London. We've heard from Goldman Sachs in recent days saying that they could see oil hitting$120 a barrel if the fighting continues.

17:36What could potentially drive the price higher at this point? Well, it's time. It's the amount of time that the Strait of Ormuz remains closed. As long as it remains constricted, it's not entirely closed. Oil is getting through. But as long as those flows remain constricted, it increasingly stretches the whole global energy system. It means that stockpiles around the world are further depleted, and that pressure will see prices steadily ratchet higher. The other thing that really needs to be talked about is not so much the price of crude, but the extraordinary prices we're seeing for diesel and other refined products, and just how stretched the refining system is.

18:13In the US right now, if you're a refiner, you're paying $100 for your oil, maybe a little less, a little more, but you're doubling that when you sell it as diesel. The profit from finding diesel is another$100 a barrel, and that really illustrates just how stretched the system is and how expensive fuel is becoming for end users and the pressure that puts on the wider economy. Just 30 seconds left, but what's our understanding about how much oil is getting through at this point despite the risks? Well, we see different numbers. We see numbers sort of in the range of six to 10 million barrels a day.

18:49I think it varies day by day, depending on what the situation is in the Persian Gulf and how confident those ships that are making that journey and taking those risks are. So it is happening, and that's me preventing the crisis getting worse, but it's a long way from what it was. 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.

19:33Plus, 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.

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