Trump Considers "Massive" Iran Attack, Imposes New Tariffs

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1:53So healthcare is connected, not complicated. What's that look like? Cheaper prescriptions that are easier to get and care that looks at the whole person. How you need it. Optum is helping make healthcare work as one for everyone. Learn more at business.optum.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 from the Middle East. More sirens are sounding in Gulf Arab countries this morning after the U.S. wrapped up a 13th night of attacks on Iran. The Associated Press is reporting at least seven explosions have been heard near a base housing U.S.

2:38forces near Erbil in northern Iraq. That's as President Trump told Axios he is close to a decision on a massive attack to try to bring Tehran back to the negotiating table. U.N. Secretary General Antonio Guterres is calling for diplomacy. The situation is getting out of control. It's tittering on the edge of the unimaginable. The UN Secretary General Antonio Guterres spoke at a Security Council meeting. Bloomberg's owner, Ant, reports mediation efforts have proved challenging. The Iraqi Prime Minister did relay a truce proposal to Iranians from the US that was flatly rejected. That's according to the New York Times.

3:15Now, the paper doesn't say what exactly the contents of that proposal was, But the narrative coming out of Iran suggests that it was a short-term temporary truce under the 60-day original truce that has now all but collapsed. And Bloomberg's owner, Ant reports, an Iranian official is calling that New York Times report, quote, completely misleading. That's according to Iran's state media. Nathan, the conflict in the Middle East was just one of the topics that came up at a special town hall last night at United Nations headquarters in New York. Bloomberg hosted six candidates vying to be the next U.N.

3:46secretary general. General. Former Costa Rican Vice President Rebecca Grinspan said the world body needs to be more engaged. We should have engaged very early on with all the actors to try to open up at least for the benefit of the people that are suffering far away from the situation in the Strait of Hormuz that is affecting everybody. Along with Costa Rica's Rebecca Grinspan, former UN General Assembly President Maria Fernanda Espinosa argued for a more fundamental issue. Our responsibility is to make the UN relevant again, to deliver, to touch the hearts and souls of people on the ground, to serve people on the ground, and not to confuse activity with impact.

4:34Also taking part in the UN town hall were Guyana's ambassador, Carolyn Rodriguez-Bercat, former U.N. Human Rights Commissioner Michelle Bachelet, Mackie Saul, the former president of Senegal, and International Atomic Energy Agency Chief Raphael Grossi. Another major story we're following this morning, Karen, involves global trade. The U.S. has begun collecting new duties on imports from most of its major trading partners. And we get the very latest from Bloomberg's John Tucker. John. And Nathan, this is the biggest move yet to try and reconstruct President Trump's tariffs, Tariffs that were struck down by the Supreme Court.

5:09The administration says it would now collect tariffs of 10 to 12.5 % on imports. They took effect just after midnight. The administration says these are the result of an investigation into forced labor in supply chains that work to the detriment of American workers. It comes under Section 301 of the 1974 Trade Act. Asian nations describe the administration's latest tariffs as baseless and unjustified. while stopping short of any retaliation at the moment. Ultimately, it is American importers who pay. Selling American importers with costs does carry risk politically for Trump and his fellow Republicans less than four months from midterm elections, where the focus for Democrats is the elevated cost of living.

5:54In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. The Justice Department is dropping subpoenas to New York Times reporters over stories detailing security concerns with President Trump's Qatari-donated Air Force One. The withdrawals came after a federal judge criticized the government for sloppy legal work. The Times' stories came out after President Trump flew home from Turkey on the old Air Force One, prompting questions about why the new aircraft wasn't used. Starting the markets now, Karen. Futures are mostly higher this morning following yesterday's tech-fueled sell-off on Wall Street.

6:26Helping fuel this morning's gains is another tech name, Intel. That stock is up 4 % pre-market. The chipmaker delivered a revenue forecast that shattered Wall Street estimates It says booming data center spending fueled a long-awaited turnaround. Bloomberg tech host Ed Ludlow has more on the results. The market is a situation where CPU specifically is taking off for Intel. A lot of their top-line performance is answered by that. And in the quarter gone, that unit's growing 59%, double what the rest of the business is growing at. So they have found their place in that market. But what they're battling to do is improve their own operations, their own foundries and their own processes so they can get the CPU product that people actually want out there into the real world.

7:10And Bloomberg's head Ludlow says Intel sales will be$15.8 to$16.8 billion in the third quarter. That is above the$15.1 billion average analyst estimate. Nathan, it was a bruising session for big tech yesterday. The Mag 7 suffered their biggest one-day drop since the tariff sell-off in April of last year. The group lost almost$800 billion in market value. helping fuel the sell-off, disappointing earnings from Alphabet and Tesla. Wall Street is growing increasingly concerned about the hundreds of billions of dollars big tech is spending on AI. We're seeing big concerns about the latest surge in energy prices in the bond market, Karen.

7:47The average yield on the Bloomberg Global Treasury Index has surged to 3.68%. That surpasses a peak from three years ago to reach the highest level since the global financial crisis in 2008. The pressure on both front and long-end yields comes ahead of key central bank decisions next week, including the Bank of Japan, the Bank of England, and the Federal Reserve. There was another setback for SpaceX, Nathan. It's once again delayed its Starship rocket flight due to unfavorable weather. It will try again this evening. The rocket will be carrying upgraded Starlink satellites that are intended to burn up later in the atmosphere as part of the test mission.

8:26SpaceX has lost more than a trillion dollars in market value since its record closed five weeks ago. Now we want to bring you a Bloomberg exclusive from the big take, Karen. When the Trump administration shut down USAID, officials rejected warnings that ending the agency's work would put lives at risk. Now, a Bloomberg investigation has linked an unfinished U.S.-funded irrigation project in Kenya to the worst flooding one village has experienced in at least a decade. Using interviews, satellite imagery, and government records, Bloomberg found the abandoned project altered the flow of water, destroying crops and fueling outbreaks of disease.

9:00Bloomberg's Simon Marks worked on the investigation. By pulling out overnight, they were really leaving a project halfway through. So they had conducted a bunch of work to this project, but they had also destroyed a lot of the infrastructure in the area in the hope of renovating it and bringing it back to life later. And that, in this case, really brought about huge upheaval to the local community because it changed what water was doing within the irrigation scheme. That's Bloomberg's Simon Marks. The State Department did not answer detailed questions from Bloomberg about the Kenya project, but it does say that U.S.

9:38foreign assistance is now more agile, quicker to respond, and more accountable to taxpayers. The agency says its global water strategy is being revised to align with the Trump administration's America First policies, while decisions on water and sanitation programs for 2026 remain under review. You can hear more from Bloomberg's investigation on the latest episode of the Next Africa podcast. You can find that wherever you get your podcasts. 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.

10:13Good morning, Karen. New York City police arrested a man in connection with two stabbings on Manhattan's Upper West Side Thursday afternoon and are evaluating whether the attacks amount to hate crimes. Commissioner Jessica Tisch said the victims, an Asian man and a Jewish man, were taken to the hospital and are both expected to survive. According to a person familiar with the investigation, both men are in their 50s. The man arrested was identified as 51-year-old Raul Morales. During both attacks in Central Park, witnesses said he yelled, Allahu Akbar, Arabic for God is greatest. In Madison, Wisconsin, the investigation continues into a police-involved deadly shooting.

10:53The city's mayor says the immediate focus is supporting the family of the homeless man shot Corey Ruiz and the community. Madison Council President Sabrina Madison. Maybe we need to be changing our standards of what it looks like to know that you're fit to be in our community, serving our community, because too often we have a Corey. Madison does not require police to wear body-worn cameras. A potential deal between the United States and Saudi Arabia over nuclear energy announced this week has been thrown into question. The agreement would see the U.S. partner with Saudi Arabia on developing the Saudi civilian nuclear energy program, but the U.S.

11:32demands that Saudi Arabia join the Abraham Accords, which would normalize relations with Israel as part of the deal. Democratic Representative Alexandria Ocasio-Cortez of New York. We are seeing an administration whose deals are more incentivized by their desire to get rich on polymarket and crypto than the needs and safety and security of the American people. These deals should be about national interest, and instead they are about personal enrichment for whoever has an in in the White House. Saudi Arabia has rejected normalization of diplomatic ties with Israel unless a Palestinian state is recognized.

12:11global news 24 hours a day and whenever you want it with bloomberg news now i'm michael bar and this is bloomberg karen thanks michael time now for our bloomberg sports update and for that we bring in john stash hour just five games on the major league baseball schedule on thursday with the braves slipping past the padres six to five twins beating the guardians three to one in 12 innings rays losing to the blue jays three to one diamondbacks dominating the cardinals 10 to six while the Tigers got past the Royals 4-3. Baseball's top trade deadline target, two-time reigning AL Cy Young Award winner Tarek Skubal, could be making his final start for the Tigers tonight against the Royals with a trade deadline coming up on August 3rd.

12:49Baltimore Ravens waiving quarterback Diego Pavia less than three months after signing the Heisman Trophy runner-up as an undrafted free agent. Pavia had made headlines for his perceived cockiness as well as for criticizing Heisman voters. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this.

13:33Or if my cash balance goes above$20 ,000, move the excess into my direct index. You approve the workflow and your agent handles the rest. Monitoring the market, watching for your conditions, and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com slash market and fund your account in five minutes or less. That's public.com slash market.

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15:51Coast 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. After a 13th straight night of airstrikes on Iran, President Trump is said to be close to a decision on a massive new attack to try to bring Iran back to the negotiating table. Secretary of State Marco Rubio says he agrees with the president. Iran has not felt enough pain yet. I saw Arachi, their foreign minister, who the other day say something about their policies, an eye for an eye. The president's policy is a head for an eye.

16:27That was Secretary of State Rubio at the ASEAN Summit in the Philippines. Joining us this morning from Dubai is the head of Middle East coverage for Bloomberg News, Stuart Livingston Wallace. Stuart, the interview that the president gave to Axios, talking about this massive new attack he's considering, has certainly gotten a lot of attention. Where could this be going now? Good morning. Good morning, Nathan. It's very hard to tell. I mean, there is certainly, I think, a sense that more U.S. military equipment is being moved into the region. They obviously already have a great deal here, not least those two-strike carry groups that have been sitting in the Arabian Sea for some time now.

17:02But again, on the flip side of this, you know, they already tried a very intense series of bombardments in the first couple of months of the war that didn't really appear to get anywhere far in terms of diminishing Iran's ability to threaten commercial shipping. And, you know, the most recent attack around Hormuz was on Tuesday, which is pretty recently. So, again, multiple rounds of attacks, particularly on those coastal areas and military installations along there, don't seem to have had much impact. And, frankly, it doesn't take a great deal in the way of threats from the Iranian sides to deter shipping.

17:34Because, again, if I'm the captain of a commercial tanker, commercial container ship, you know, It's not particularly encouraging for me to have to go through there. It clearly is a very dangerous environment. In the meantime, we've seen this report from the New York Times that the U.S. proposed a new ceasefire proposal through Iraq's prime minister and Iran rejected it. What do we know at this point about mediation efforts, even as the fighting continues to go on? I mean, we know that there's been what they characterize exchanges of messages, and read into that what you will, rather than negotiations, but clearly neither side are particularly satisfied with the responses they're getting.

18:17You would presume, although we don't know for a fact, that there'll be multiple parties involved in this, not least from the Gulf Arab states, who obviously are suffering terribly from this economically. So we know Qatar has been pretty involved. Obviously, Pakistan is involved, and I'm sure there are many others as well. Clearly, it is in no one's interest within the region for this to escalate further, because again, the damage being caused to their economies, not least because of oil, but also gas and container shipping, is pretty stark. And there needs to be some sort of effort to resolve this, particularly around Hormuz.

18:54But then obviously, there's all this other host of other issues that need to be addressed as well. But when we have the Houthis starting to attack shipping in the Red Sea and President Trump threatening to go after one power plant or bridge for every ship that's attacked in the Persian Gulf in our last 30 seconds here, Stuart, what could that mean going forward? I mean, that is a deep concern. I mean, it is definitely a new front. Now, the Houthis obviously have something of a track record of attacking commercial shipping, but we saw those attacks on at least one Saudi oil tanker, potentially two, a couple of days ago.

19:29And that is deeply concerning, not least because of the oil flow, which was something of a lifeline with Holmusha, but also because of the amount of general trade that passes through there. I mean, sewers, which is at the top of that stretch water, something like one-sixth of global trade, that is maritime trade under normal conditions. So that's going to have a ripple effect right across the global economy.

20:16on 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.

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