Trump Calls Off Iran Strike; Jury Rejects Musk's OpenAI Claims

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1:32when you book direct with Sinesta Travel Pass. Here today, Rome tomorrow. Join now at Sinesta.com. Terms and conditions apply. 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 from the Middle East. Hours after President Trump warned Iran, the clock was ticking to reach a deal. He's put that clock on hold. The president says he has called off a strike on Iran planned for today after an appeal from Persian Gulf allies. I was asked by Saudi Arabia, Qatar, UAE and some others if we could put it off for two or three days, a short period of time, because they think that they are getting very close to making a deal.

2:24And if we can do that where there's no nuclear weapon going into the hands of Iran, I think, and if they're satisfied, we will be probably satisfied also. President Trump spoke at a White House event last evening. We get more from Bloomberg Middle East correspondent Jumana Bersechi. What is going to happen in the next couple of days? We probably have a couple of days window to allow things to breathe. He does say that negotiations are going on in the background. And indeed, we know that these negotiations are happening. Iran once again submitted their refreshed, I would say, counterproposal via the Pakistani mediators to the U.S.

2:57yesterday. And we'll see where we go from here. Bloomberg's Jumana Bersetchi reports the White House rejected Iran's latest proposal as insufficient to reach a deal. At the same time, Iran has refused to budge on some of its key demands, including war reparations and unfreezing its assets. Now, Nathan, to the latest on the legal showdown between Elon Musk and OpenAI's Sam Altman. Musk says he is going to appeal a jury ruling which rejected his claims that OpenAI betrayed its mission to benefit the public by morphing into a for-profit business. The jury found that Musk waited too long to file his lawsuit.

3:33Bloomberg Intelligence senior litigation analyst Matthew Schettenhelm covered the case for us. This lawsuit potentially threatened to hang over the company's head. Elon Musk was seeking court-issued limitations on the company's ability to pursue its for-profit mission and really to be limited and hamstrung by its original charitable roots. So this win for the company reduces that risk. Bloomberg Intelligence analyst Matthew Schettenhelm says Musk was seeking dramatic changes, including a court order unwinding OpenAI's conversion last year for a for-profit entity. Well, another major story we're following this morning involves the commute in and out of New York City by rail.

4:17Soon, it's going to be back to normal. A strike at the biggest commuter railroad in the nation is over. Let's get more from Bloomberg's John Tucker in New York. John? And Nathan, the Long Island Railroad strike ended at midnight, but service is not going to start to resume until around noon today. Like yesterday, shuttle bus service will operate of 100 locations to bring commuters to subway stations in Queens. General Lieber, the head of the Metropolitan Transportation Authority, says the wage hike they agreed upon won't raise fares. We needed to find ways that we could give people fair raises, but also structure it in a way that didn't blow the MTA's budget.

4:55We got it done. I wouldn't be standing here if we hadn't found those answers. The accord comes after 3 ,500 LIRR workers walked off the job Saturday, shutting down service for nearly 300 ,000 weekday commuters who rely on the railroad to get to New York City and throughout Long Island. While it still needs to be ratified, service will resume just hours before the Knicks face Cleveland at Madison Square Garden. In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. While commuters wait for the trains to roll again, they'll have another thing to contend with, heat. And Bloomberg meteorologist Craig Allen has more on this hot spell.

5:33This is big-time heat for early in the season. It's going to be intense, but fortunately it won't last too long. Heat advisories do cover much of Pennsylvania, New Jersey, including New York City's five boroughs as well as Boston and suburbs too. So expect highs at least in the middle 90s away from the coast and the heat index could run between 95 and 100. Fortunately the ocean will keep it cooler along the shore. Now as I mentioned it's not a prolonged heat spell. The second half of the week will be significantly cooler but it may take a few thunderstorms to push out the heat. Until then try to stay cool my friends.

6:12Bloomberg meteorologist Craig Allen says the heat advisory will remain in effect until 8 p.m. Eastern tomorrow. Well, now we want to update you on a deadly mass shooting in Southern California. Police say three people were killed when two teens opened fire outside the Islamic Center of San Diego. That's the city's largest mosque. The 17 and 18 year old suspects were later found dead in a car with apparent self-inflicted gunshot wounds. San Diego Mayor Todd Glory is promising additional protections to the Muslim community. Hate has no home in San Diego. Islamophobia has no home in San Diego. An attack on any San Diegan is an attack on all San Diegans, and we will not stand for it in America's finest city.

6:56Along with San Diego's mayor, New York City Mayor Zoran Mamdani says there will be extra police protection at local mosques after what he calls an apparent act of anti-Muslim violence. Turning to politics, Nathan. Six states are set to hold high-stakes primary races today. I'm Bloomberg's Monica Ricks reports. Georgia will be a big one following record early voting turnout in the state, with two incredibly close races to watch, including a Senate Republican primary, to see who will run against incumbent Democratic Senator John Ossoff. And both parties will battle crowded fields to replace Governor Brian Kemp, who's term limited.

7:31In Kentucky, President Trump's working to get Republican Senator Thomas Massey booted after Bill Cassidy's primary loss last weekend in Louisiana. They were part of a group of seven GOP senators who voted to convict Trump during his 2021 impeachment trial. Pennsylvania, Oregon, Indiana, and Alabama are also holding primaries today. Monica Ricks, Bloomberg Radio. Monica, thank you, and stay with Bloomberg for complete coverage of the primaries. Bloomberg Balance of Power with Joe Matthew and Kaylee Lyons live in Atlanta, breaking the races. And you can catch them live at noon Wall Street time on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business app.

8:08Karen, the Justice Department's creating a$1.8 billion fund to pay out claims of alleged government weaponization. This is part of a settlement agreement to end President Trump's lawsuit against the IRS. The president spoke after the settlement. But this is reimbursing people that were horribly treated, horribly treated. It's anti-weaponization. They've been weaponized. They've been, in some cases, imprisoned wrongly. They paid legal fees that they didn't have. They've gone bankrupt. Their lives have been destroyed. That was President Trump speaking of the White House. Senate Democratic Leader Chuck Schumer blasted the creation of the compensation fund.

8:42Of all the corrupt things Donald Trump has done, this MAGA slush fund at the Department of Justice is one of the most depraved. Senate Democratic Leader Chuck Schumer. Under the deal, President Trump would not receive any money directly from dropping his$10 billion lawsuit. Let's turn to the markets now, Nathan. where U.S. Treasury yields are flirting with 2007 highs. Global bond yields have surged in recent weeks as a jump in energy prices caused by the Iran war adds to inflationary pressures and compels central banks such as the Fed to consider raising interest rates. Add in worries over budget deficits and signs that the U.S.

9:19economy remains resilient, investors have been seeking greater compensation to own longer maturity debt. Turning to company news now, Karen, NVIDIA expects China will eventually allow AI chips to be imported from the U.S. NVIDIA CEO Jensen Wang told Bloomberg the topic of selling his company's H200 chips to customers in China did come up during recent discussions between Washington and Beijing, but Wang says he did not discuss it directly with Chinese officials. The president wants America to lead the AI revolution. And so H200s are licensed to sell to China. The Chinese government has to decide how much of their local market do they want to protect and how much of their local market do they want to expand with more AI capacity.

10:06My sense is that the demand in China is so incredible. Just like it is here, agentic AI is also making enormous progress there. My sense is that over time, the market will open. You can catch our entire interview with NVIDIA CEO Jensen Wang on all of our high-profile conversations on our new video hub on the Bloomberg Business app. By the way, NVIDIA reports earnings tomorrow, so stay with Bloomberg for full coverage of that after tomorrow's closing bell. And there's a restructuring at Meta Platforms, Nathan. According to an internal memo, the Facebook parent is reassigning 7 ,000 workers to new jobs related to artificial intelligence.

10:45Meta will cut staff later in the week as part of an effort to improve efficiency and offset its investments in AI.

10:55Time 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. A U.S. doctor has tested positive for the Ebola virus after being exposed in the Democratic Republic of the Congo and has been sent to Germany for supportive care. The CDC is working to move six others who may have been exposed to Germany. About 350 suspected cases and 91 deaths in the Congo have been reported. Dr. Stephanie Whitmer, an emergency medical physician, said this latest Ebola outbreak involves a troubling new strain of the virus.

11:30What can happen is that from these flu-like symptoms, it can progress to multi-system organ failure, bizarre bleeding, and, you know, shock and death. Dr. Stephanie Whitmer told ABC Ebola is highly contagious through direct contact. Accused killer Luigi Mangione appeared in a New York courtroom Monday where he learned most of the evidence gathered during his arrest can be used against him at trial. The judge decided a gun and a diary was admissible, but the judge ruled other items pulled from the bag while Mangione was arrested at a Pennsylvania McDonald's cannot be used, including a magazine, cell phone, passport, wallet, and computer chip.

12:12That part of the search, Judge Gregory Carroll said, was illegal. I find that the search of the backpack at the McDonald's was improper, warrantless search. Mangione has pleaded not guilty to murder charges. His trial is set for September. We're learning a former Los Angeles police detective convicted of lying during the O.J. Simpson murder trial has died at age 74. Mark Furman was one of the first two police detectives sent to investigate the 1994 killings of O.J. Simpson's ex-wife Nicole Brown Simpson and her friend Ronald Goldman. Furman reported finding a bloody glove at Simpson's home, but his credibility came under attack during the trial as the defense raised the prospect of racial bias.

12:58His manager says the cause of death was throat cancer. 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 start of the NBA's Western Conference Finals, Oklahoma City star Shea Gilgis-Alexander got his MVP trophy and then had a subpar game. Only four points at halftime. He shot seven for 23, while San Antonio's Victor Wimbanyama scored 41 points, had 24 rebounds. The Spurs beat the Thunder in double overtime in Game 1.

13:34Game 7 of the Stanley Cup playoffs in Montreal's Alex Newhook, who had a game-winning goal in the first round against Tampa Bay, scored in overtime. The Canadiens beat Buffalo. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Did you know that passive fixed income ETFs only capture about 50 % of the U.S. public bond market? But with J.P. Morgan Asset Management's active fixed income ETFs, we can help you capture 100 % of the U.S. public bond market and explore twice as many opportunities. Visit jpmorgan.com slash getactive to learn more. JPMorgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co.

14:15and its affiliates worldwide. This communication is issued by JPMorgan Distribution Services, Inc., member of FINRA. You need to make a huge presentation in an hour. Adobe Acrobat uses AI to take all your documents and generate a presentation with a single click. Build slides quickly and streamline the process. Need a last-minute pitch deck? Do that with Acrobat. Need to level up your presentation design? Do that with Acrobat. You have 30-plus documents that need to be simplified into a proposal. Do that. Do that. Do that with Acrobat. Learn more at adobe.com slash do that with Acrobat. If your best finance people are doing expense reports, chasing receipts, or spending time on month-end close, it's time to get Brex AF, a gentic finance that eliminates that work before it starts.

15:05Learn more at brex.com slash AF. Coast 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. President Trump's ticking clock on Iran appears to be on hold this morning. The president says he's holding off on new bombardments planned for today to give Saudi Arabia, the UAE, and other Gulf allies more time to talk about reaching a deal. We've had periods of time where we had, we thought, pretty much getting close to making a deal and it didn't work out, but this is a little bit different.

15:44That was President Trump at a White House event yesterday. Joining us this morning is Bloomberg Middle East correspondent and Bloomberg Horizons anchor Jumana Bersechi. Jumana, the president says this time is a little bit different. What is potentially making it different this time? Good morning. Yeah, well, at least he's actually said, and we have to take his word at face value, that the U.S. were preparing for another round of military action. So remember, yesterday he issued a threat to Iran saying that the clock is ticking. and unless they sign a peace deal, then the U.S. would have to act.

16:21And now, of course, we understand that the U.S. were actually preparing themselves for another round of kinetic action. And he says that they have refrained from doing that at the request of their Gulf allies, that's Saudi Arabia, Qatar, UAE. But then equally said, you know, they asked if we could put it off for two to three days. That's a short period of time because they think they're getting close, very close to making a deal. So it's not completely taking military action off the table. It's just postponing it once again. The threat is still there. And again, giving Iran an opportunity in the next couple of days to come back to the negotiating table to at least, if not agree on the full terms of the peace agreement, but agree on a framework as to how they can push this forward.

17:02Interesting to hear the president say that it was Saudi Arabia, the UAE and Qatar among those calling for this diplomacy when Tehran and potentially other groups have been targeting those countries lately. How does that factor in? Yeah, no, it's a very valid point. And indeed, there's been a lot of reporting, even from our own colleagues, that said that over the course of the war, both the UAE and Saudi Arabia were actually privy themselves. they did participate militarily in some targeted strikes on Iran. So they were sort of passive participants, I will say, in this war. You fast forward to today, and I think there's an understanding in the region that while there's no love lost between Iran and the Gulf states, the lesser of two evils would be to get a diplomatic resolution to this because their real concern is that Iran would once again start striking back at energy infrastructure and energy facilities.

18:00And you don't have to go that far. It was over this weekend. The nuclear facility in Abu Dhabi was targeted. It caused limited damage, no injuries, but it did cause a fire. And these Gulf states are beginning to hurt economically. So I think, you know, when weighing up the options, the better options of the two right now is to get to a negotiated solution rather than have the risk of things flaring up again and more damage being inflicted on their economies and their infrastructure. Less than a minute left, but what could a potential diplomatic solution look like when it seems like the U.S. and Iran are still very far apart on the fundamentals?

18:36There are two main issues. The first is the strait. The second is the nuclear file. On the strait, Iran has asked the U.S. to end its blockade. The U.S. has said Iran has to first reopen the strait before it can actually do so. So again, there, it's a bit of a staring match. It's a matter of who can tolerate higher economic costs at this point. On nuclear enrichment, the Iranians are saying the U.S. has asked them to give it up completely. Iran says it won't because they have a right to low-level nuclear enrichment. Iran are also asking for war reparations and guarantees that the U.S. won't strike again.

19:12Again, these are conditions that the U.S. are not going to subscribe to. So there's still a host of issues. But ultimately, short-term, though, what it boils down to is the Strait of Hormuz and how the two sides are going to agree to lift the mutual blockades that are in place. 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.

19:55Plus, 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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