Saudi, UAE Could Reportedly Join Iran War; Senate Inches Toward DHS Deal

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1:58The Cincinnati Insurance Companies. Let them make your bad day better. Find an independent agent at CINFIN.com. 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 on the war with Iran now into its 25th day. Attacks continue on both sides, even as President Trump says he's holding off on going after Iran's energy infrastructure for five days, citing what he calls really good discussions with Tehran. They started last night, a little bit the night before that. And I think they're, you know, I think they're very good.

2:50They want to they want peace. They've agreed they will not have a nuclear weapon, you know, et cetera, et cetera. The president says U.S. Envoy Steve Whitcoff and Jared Kushner spoke with a top person in Iran on Sunday, but that it's not the new Supreme Leader Moshe Bahamini. Iranian officials for their part say they are ruling out discussions with the U.S. Stuart Livingston-Wallace leads Bloomberg's Middle East coverage. It's a confused picture and we're getting scraps of it. So there does appear to have been some sort of back channeling going on. And our reporting has shown that probably includes Egypt, Turkey, Pakistan, Saudi Arabia, Oman.

3:26And I'm sure that's not a complete list when you think of the number of countries that have been impacted by this war, not just directly in terms of attacks from Iran, but but also, you know, in terms of the economic impact, much further afield. And I'm thinking particularly of East Asia. Bloomberg's Stuart Livingston-Wallace reports President Trump decided to back off his threats after allies privately warned him that the war was becoming a disaster. Sources tell Bloomberg News that regional partners told the U.S. permanent damage to Iran's infrastructure would lead to a failed state. But Nathan, there are signs the conflict may already be escalating.

4:00The Wall Street Journal is reporting that Saudi Arabia and the United Arab Emirates are taking steps toward joining the war. The paper says Saudi Arabia has agreed to give the U.S. access to King Fahd Air Base, and the UAE has closed a hospital and a club owned by Iran. All this as attacks continue this morning as we hear from Bloomberg Middle East correspondent Jumana Bersechi. They're still being joined U.S.-Israeli military strikes throughout Iran overnight. Some reported strikes near nuclear facilities have taken place, So we understand that limited damage was caused there. And in retaliation, Iran continues to strike back, once again, sending projectiles towards Saudi Arabia that were intercepted over Kuwait, over Bahrain.

4:45We understand an AWS center was also targeted in Bahrain. More interceptions over the UAE as well, and missile strikes being targeted towards Tel Aviv. And that's Bloomberg's Jumana Bersetchi reporting from Dubai. Well, Karen, there were huge bets in the markets before President Trump's public announcement on war negotiations. That helped send crude oil prices tumbling 14 percent. Contracts representing millions of barrels changed hands about 15 minutes before the president's social media post. That's according to exchange data compiled by Bloomberg. There was a similar increase in activity in U.S.

5:20stock futures on the S &P 500 prior to the president's post. Well, checking markets this morning. right now, Nathan, crude oil is rising. NYMEX crude oil is up almost 3 % at$90.69 a barrel. Brent is up 1.7 % at$101.66. And S &P futures are lower, down a tenth of a percent. Yesterday, all three major indexes gained at least 1.2 % after President Trump ordered the Pentagon to hold off on military strikes against Iranian energy infrastructure. Brent Schutte is chief investment officer at Northwestern Mutual. From the near term, it's still a wait and see. I don't think we resolved all the different possible outcomes.

5:59And so I think this week is going to be interesting as we progress. And certainly headlines will drive the market over the next few weeks. Longer term, though, you want to look through this and you want to stay invested, obviously, and you want to stay diversified. And that's Northwestern Mutual's Brent Schutte. The S &P 500 had its biggest one-day gain since February 6th. Karen, let's get to the latest now on the deadly plane crash at New York's LaGuardia Airport. The cockpit voice recorder and flight data recorder have been recovered. Investigators are decoding the black boxes from that Air Canada Express jet that collided with a fire truck just after landing.

6:33The captain and the co-pilot died. Forty-three people were hurt. Jennifer Homendy is chair of the National Transportation Safety Board. The Port Authority and the emergency responders cut a hole on the roof of the aircraft, dropped down, and was able to get the CVR and FDR for us, which then one of our investigators drove back to our labs in Washington, D.C. today, where they've been able to at least verify that the cockpit voice recorder was not damaged. The NTSB's Jennifer Holmendy says this was the first deadly accident at LaGuardia in more than 30 years. Meanwhile, Nathan, senators in both parties are expressing rising optimism about reaching an agreement to end the five-week partial shutdown to the Department of Homeland Security.

7:23The shutdown has led to lengthy delays at major U.S. airports and unpaid employees of the Transportation Security Administration calling in sick. After Republicans met at the White House with President Trump on Monday, Senator Mike Rounds of South Dakota tells Bloomberg Balance of Power that the Senate is working on a deal. We'll continue to work on it. Hopefully we will find a breakthrough somewhere along the line and we'll be able to not only open up all of the operations of government, including those that protect us against terrorist threats, and get our airports open and operational and get those guys paid.

7:59That's really important to the vast majority of us. And I recognize that the president is lobbying hard to get everything done. Respect him for it. Bottom line is we're going to get as much done as we possibly can get done. And Senator Mike Rounds of South Dakota on Bloomberg's balance of power. Senate Minority Leader Chuck Schumer told reporters that, quote, both sides are working in a serious way. The Senate has been at odds over two Democratic demands that DHS agents obtain warrants from judges before entering homes. and that federal agents stop wearing masks. And with the DHS still shut down, Karen, Mark Wayne Mullen has been confirmed to be its next secretary.

8:38On this vote, the ayes are 54, the nays are 45. The nomination of Mark Wayne Mullen of Oklahoma to be Secretary of Homeland Security is confirmed. That was the Senate vote, mostly along party lines, confirming the first-term Republican senator and former mixed martial arts fighter who's been a staunch defender of President Trump's deportation program. Federal funding, as we said, has been shut down for the DHS since mid-February due to disagreements over immigration enforcement tactics and demands for restrictions. Mark Wayne Mullen replaces Kristi Noem as DHS secretary. Well, overseas, Nathan, the European Union and Australia have agreed to a free trade deal after almost a decade of negotiations.

9:18Both parties are working to shield their economies from U.S. tariffs and China's restrictions on critical minerals. Here's European Commission President Ursula von der Leyen. Today, we are telling an important story to a world that is deeply changing, a world where great powers are using tariffs as a leverage and supply chains as vulnerabilities to be exploited. In our story, open, rules-based trade delivers positive-sum outcomes. Trust matters more than transactions. European Commission President Ursula von der Leyen says The agreement will now need to be signed off by EU countries and approved by both parliaments.

9:59And Karen, while the markets may close on Fridays, the world does not. That is why we are bringing you a new live radio and TV show. Bloomberg This Weekend looks beyond the daily headlines to the bigger themes, driving politics, business and culture. So join David Gura, Christina Raffini and Lisa Matteo for smart conversations and in-depth interviews that help make sense of the week that's been and what comes next. You get Bloomberg This Weekend live every weekend, Saturdays and Sundays from 7 a.m. Eastern on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business app.

10:35Time 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. The Supreme Court signaled a divide over Republican calls to require mail-in ballots to arrive by Election Day. Let's get the story this morning from Bloomberg's Matt Piper. Key justices voiced concern about the impact the case might have on the practice of early voting. Chief Justice John Roberts suggested he was not convinced by Trump administration contentions that late arriving ballots could be outlawed without also undermining early voting.

11:07In a hearing that lasted more than two hours Monday, the court grappled with a Mississippi law that allows mail-in ballots to be counted as long as they arrive within five business days of Election Day. Dozens of states allow at least some ballots to be counted after Election Day. I'm Matt Piper, Bloomberg Radio. The Trump administration has initiated two new investigations into Harvard University. It comes over alleged anti-Semitism on campus and racially discriminatory admissions practices. Two people on board a small helicopter were killed when it crashed into a warehouse in Boyden Beach, Florida, Monday.

11:40Fire Rescue Battalion Chief Max Axedine says it happened just after noon. Upon arrival, we did find one small helicopter inside one of the buildings that crashed through the roof. There were no survivors. The FAA and NTSB are investigating. The Federal Communications Commission has ordered a ban on the import of new models of foreign-produced consumer wireless routers. The move comes after an interagency panel determined they threatened national security. The move could dramatically shake up the market for routers, which are primarily made overseas. Global news 24 hours a day. And whenever you want it with Bloomberg News Now.

12:19I'm John Tucker, and this is Bloomberg. Karen. Thanks, John. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. Make it 12 straight wins for the Oklahoma City Thunder, the defending NBA champions who have the best record this year. An easy win in Philadelphia. San Antonio got 36 from Victor Wambanyama. in a 25-point round of Miami. The Lakers' nine-game win streak came to an end, lost by three in Detroit. Three top seeds advancing to the Sweet 16 in the NCAA Women's Tournament, including UConn, who's undefeated. South Carolina won its game by 40, also advancing UCLA.

12:56That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. The news doesn't stop on the weekends. Context changes constantly. And now Bloomberg is the place to stay on top of it all. Hi, I'm David Gurra. Join us every Saturday and Sunday for the new Bloomberg This Weekend. I'm Christina Ruffini. We'll bring you the latest headlines, in-depth analysis, and big interviews. All the stories that hit home on your days off. And I'm Lisa Matteo. Watch and listen to Bloomberg This Weekend for thoughtful, enlightening conversations about business, lifestyle, people, and culture.

13:33On Saturday mornings, we put the past week's events into context, examining what happened in the markets and the world. Then on Sundays, we speak with journalists, columnists, and key political figures to prepare you for the week ahead. Join us as soon as you wake up and bring us with you wherever your weekend plans take you. Watch us on Bloomberg Television, listen on Bloomberg Radio, stream the show live on the Bloomberg Business app, or listen to the podcast. That's Bloomberg this weekend, Saturdays and Sundays starting at 7 a.m. Eastern. Make us part of your weekend routine on Bloomberg Television, Radio, and wherever you get your podcasts.

14:15Coast 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 on day 25 of the U.S.-Israeli war with Iran. fighting continues across the Middle East, even as President Trump says talks are underway to try to end the conflict. We were planning tomorrow on shooting down some of their power plants, and we're not going to be going to hold that up. Hopefully we won't have to do it. That was the president at a roundtable discussion yesterday in Memphis. This morning, we're joined from Dubai by Bloomberg Middle East correspondent Jumana Bersechi, the anchor of Bloomberg Horizons.

14:53Jumana, good morning. Thanks again for being with us. What is the latest in terms of the fighting? Well, if I had to summarize the last 24 hours, I would say there has been an attempt to de-escalate or at least reopen the diplomatic channels. But the war is still very much ongoing. And what we've seen overnight is continual joint U.S.-Israeli military strikes across different parts of Iran, Iran retaliating against Gulf states, against Tel Aviv, incoming missiles intercepted, and also one of them actually managing to sustain a significant amount of damage on one of the streets of Tel Aviv. Sirens going off in Bahrain, Kuwait City also, and more interceptions being reported in Saudi Arabia.

15:34So yes, there's been an attempt to revive the sort of indirect negotiations between U.S. and Iran, but the war still goes on. Well, what do we know, Jumana, about these indirect discussions? The president seems to be indicating that they've been direct, but we've been hearing from Iranian officials that there haven't been any discussions either way going on. Correct. So we've heard from some official, more official voices in Iran, including the Speaker of the House and the Deputy Speaker of the House. And both of them have said that there have been no direct negotiations taking place. But later in the evening, we understood that several indirect mediation attempts have been going on.

16:15And this really being put forward by the nations in the region that have not been targeted by Iran. And here I'm talking about Egypt, about Turkey to a certain extent, Oman, which has traditionally played a mediator role, and even Pakistan looking also to get involved in potential mediation talks. We understand that the Iranian foreign minister has had talks with several of his foreign minister counterparts. But again, unclear at this stage what the substance of those negotiations entail and And whether or not there's going to be some in-person meeting later in the week, as has been suggested by other outlets.

16:53And what more are we hearing about why the president had backed off this threat that we know about from last weekend, this 48 hour ultimatum to go after Iran's power plants? So our colleagues on Bloomberg News side wrote a very interesting article overnight talking about the influence and the pressure that Gulf allies put on President Trump to backtrack away from those threats to strike Iranian infrastructure and particularly the power plants because of fears of reprisal. reprisal number one about what that could mean for power plants infrastructure water desalination plants in the region but also number two the real risk that this could spiral into something short of a disaster this is a quote from the article because their thinking is if you continue to wipe out civilian infrastructure in Iran what are the people of Iran going to be left with if you are talking about ultimately regime change or an uprising of the people you have to give them a chance to be able to live and to survive.

17:54And if you continue to target civilian infrastructure, then you're removing that possibility. The last thing that anyone in the region wants is chaos on their doorstep. So it looks as though many of these Gulf states actually did manage to restrain President Trump from going down that path, hence the five-day window. But again, a lot can change in the next couple of days. 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.

18:28You 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. 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.

19:18I'm Francine Lacroix, an award-winning journalist, and I've got a new podcast, Leaders with Francine Lacroix from Bloomberg Podcasts. I've interviewed everyone from heads of state to fashion icons about the news of the moment, but I've always been curious, who are these people as leaders? I don't think there's one right way to be a leader. Make decisions. A poor decision is always better than no decision. Listen to new episodes every other Monday. Follow Leaders with Francine Lacroix wherever you get your podcasts.