Trump Declares Iran Ceasefire Over; NYC Aims to Stabilize High-Rise

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1:50Good morning. I'm Karen Moscow. And I'm Alexis Christophorus. Here are the stories we're following today. Alexis, the big moves in the markets follow major developments in the Middle East. The U.S. and Iran have traded fire in the Persian Gulf. The U.S. carried out fresh strikes in Iran, targeting more than 80 sites, including air defense systems and Islamic Revolutionary Guard Corps small boats in response to Iranian attacks on ships in the Strait of Hormuz. Speaking earlier, in Turkey, President Trump said the ceasefire is over. To me, I think it's over. I don't want to deal with them anymore.

2:25They're scum. You know what scum is? They're scum. They're sick people. They're led by sick people. And they're vicious, violent people. And if they had a nuclear weapon, they'd use it. As far as I'm concerned, it's over. I'll speak to our negotiators. They want to negotiate. They're good people. Steve Whitcoff, Jared Kushner. But they have to come back to me. As far as I'm concerned is just a waste of time dealing with them. President Trump speaking to reporters earlier today in Ankara, Turkey. Talks between the U.S. and Iran have been paused since last week while Iran conducts a week-long mass funeral for the late Supreme Leader Ali Hamidi.

3:02Well, the latest escalation in the Middle East is at the forefront as NATO wraps up its summit in Turkey. NATO Secretary General Mark Ruda threw his full weight behind America's latest strikes on Iran. When you have a ceasefire and Iran is basically violating the ceasefire, And we've seen what happened yesterday with ships being attacked. I think it is totally crucial that the U.S. forcefully react. NATO Secretary General Mark Ruda says he wants allies to confirm that Iran can never get nuclear weapons. Alexis, NATO is considering foregoing next year's annual summit to reduce tensions with President Trump and to avoid drawing attention to the host being one of the alliance's lowest spenders.

3:42Sources say the president's ongoing NATO criticisms have raised the prospect that next year's summit, set to be held in Albania, could be postponed to avoid creating yet another platform for Trump to disparage allies. And back here in New York City, officials are trying to stabilize a high-rise building in Manhattan in danger of collapse. Bloomberg's John Tucker joins us now in New York City with the very latest. John, good morning. And Alexis Buckling, structural columns and sagging floors in the former Pfizer headquarters on 42nd Street sent construction workers scrambling and led to the evacuation of nearby buildings during the height of the morning rush.

4:20I walked into the office, I was there for about 10 minutes, and then they were like, all right, everybody out, evacuate, get out now. The fire department then used drones to inspect the 33-story skyscraper. Here's Mayor Momdani. If the floor is deemed to be secure, engineers will enter and begin shoring up the building. Well, the good news is that things haven't gotten any worse. New York City Buildings Commissioner Achmed Deghani. We've been monitoring the building for many hours. We have not seen any movement. A team has entered the structure and determined that contractors can move forward now with the installation of temporary shoring.

4:56Residents were allowed back into several of the seven buildings that have been evacuated as a precaution. The project, among several, reshaping the office stock of Midtown Manhattan as developers convert aging office towers into apartments. In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. We turn to the markets now where stocks are falling. Following the latest escalation in the Middle East and South Korea, the cost speed dropped more than 5%. It is now in a bear market. It's dropped more than 20 % since last month's highs as the artificial intelligence rotation trade accelerates.

5:29And here in the U.S., Karen, futures are lower once again. Yesterday, tech-led stocks lower, with the Nasdaq dropping more than 1%. Shares of chipmakers fell almost 5%. Jordan Jackson is a global market strategist at J.P. Morgan Asset Management. Markets price off expectations, and the bar for these earnings expectations continue to move higher. These chipmakers delivered stellar earnings. We're in a historic earnings cycle right now, but again, that bar has been set significantly higher, So it becomes more challenging for the markets to kind of keep pace with this earnings projection. J.P. Morgan Asset Management Global Market Strategist Jordan Jackson notes the Philadelphia Stock Exchange Semiconductor Index is still up 74 percent this year.

6:10Well, Alexis, after losing roughly one trillion dollars in market value in less than two months, NVIDIA's stock is the cheapest it's been since before the AI boom kicked off and sent the shares into the stratosphere. The stock has tumbled 16 % since hitting an all-time high on May 14th as investors rejigger the AI trade by ditching NVIDIA in favor of competing semiconductor manufacturers, particularly those in the memory market. And Karen, turning to the economy now, we're going to get minutes from the Federal Reserve's June meeting later today. Bloomberg's Charlie Pellett has more. The minutes will be the first from Fed Chair Kevin Warsh, and according to Bloomberg Economics, they are likely to show stronger support for rate hikes.

6:50Ross Mayfield is investment strategist at Baird. Any signs of hawkishness, I'll keep an eye on. I don't think the Fed and certainly Warsh want to hike here. I don't think they feel the pressure to. So any signs of hawkishness from FOMC members down the bench, I think will be worth watching. Bloomberg Economics says given Warsh's communications overhaul, there is a risk that the minutes will take a different form, shorter or less detailed. In New York, Charlie Pellett, Bloomberg Radio. All right, Charlie, thank you. Options traders are increasing bets that the broader market is overestimating how much the Federal Reserve will raise interest rates this year.

7:27The dovish shift began last week when Fed Chairman Kevin Warsh said inflation risks have recently come down. The swaps market is currently pricing around 32 basis points of rate hike premium by the end of the year, which some strategists question given the current backdrop, including falling oil prices and weaker-than-expected June jobs report.

7:495.07 on Wall Street. Time now for a look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael Barr. Good morning, Michael. Good morning, Alexis. Maine's Democratic Party is urging Graham Plattner to immediately withdraw from the race for U.S. Senate seat following more allegations of sexual assault. The state party's executive director, Devin Murphy-Anderson, said in a video message that Plattner must drop out of this race in order to defeat longtime Republican incumbent Senator Susan Collins. We have repeatedly reiterated to Graham Plattner's team that they have no role in determining our next Democratic nominee for the U.S.

8:28Senate, nor in determining what this process looks like. Legally, Graham Plattner has until next Monday to drop out of the race to give the state Democratic Party time to replace him on the ballot. More now on a buckling New York City high-rise building under construction. Experts are weighing in on possible causes. The founder of forensic engineering firm Structural Workshop, Joe DiPompeo, says they will probably look at weight distribution to see where plans might have gone wrong. Typically, the type of failure that we saw on that column typically comes from either an overloading or from removing some kind of bracing and making the column longer.

9:05Forensic engineering's Joe DiPompeo says New York City as some of the most intense regulations there are when it comes to buildings, and this is a perfect example of why. The official death toll continues to climb from last month's twin earthquakes in Venezuela. National Assembly President Jorge Rodriguez says it is now at 3 ,685 people dead. The government also said 16 ,740 people have been injured, and almost 18 ,000 have been displaced. U.N. spokesman Stefan Dujarek says they will also assess what other humanitarian needs Venezuela could have. Meanwhile, on the ground, we, along with our humanitarian partners, are continuing to help coordinate and deliver assistance to meet people's most urgent needs in support of the government-led efforts in Venezuela.

9:53Authorities have recorded almost 1 ,100 aftershocks since the June 24th disaster. here. Global news, 24 hours a day, and whenever you want it with Bloomberg News Now. I'm Michael Barr, and this is Bloomberg. Thanks, Michael. Time now for our Bloomberg Sports Update, and for that, we bring in John Stashauer. Nice, Darren. The World Cup field is down to 18. Switzerland's going to the quarterfinals for the first time since 1954 after playing a scoreless game with Colombia. The Swiss won in penalty kicks, and what a comeback by Argentina, beating Egypt 3-2 after trailing 2-0 in the 79th minute. What a match at Wimbledon.

10:30Five-setter between Novak Djokovic and Felix Auger, Ali Asim. Djokovic won in a fifth-set tiebreaker. They played for five hours and 15 minutes. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Support for this show comes from Public.com. If you're actively involved in your portfolio, you probably catch yourself repeating the same actions. Buying the dip, manually sweeping idle cash, putting on a hedge. On public, you can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English. Like, if the VIX hits 25, buy a put option on the S &P 500.

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12:28Coast 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. And the U.S. carried out a new round of strikes in Iran targeting more than 80 sites, Senate revoked a waiver allowing new sales of Iran oil, further imperiling the peace agreement after a series of attacks on ships in the Strait of Hormuz. In fact, speaking this morning at the NATO summit in Turkey, President Trump said this could be the end of the ceasefire deal. We make a deal. Everyone's agreed. No nuclear weapon. We make a deal. They go outside, talk to the press.

13:06They say we never even talked about it. There's something wrong with them. their cuckoo. As far as I'm concerned, it's over. And we're joined now by Bloomberg Managing Editor for the Middle East, owner Ant. Owner, good morning. So is this it? Is this it for the ceasefire deal? Could be. Trump said as much, but we know from the past three months since this war began, he did say many ambitious things about bringing a civilization to an end or launching new attacks and some of those never materialized probably luckily so in this case it might as well be the case again but also there is a possibility that the strikes the u.s strikes and the retaliatory attacks by iran afterward this morning in and around the strait of hormous may spill out of control and indeed bring the current interim and fragile ceasefire to an end karen Yeah, let's talk about these latest strikes just a bit.

14:10What have we seen and what really prompted this latest round of strikes? Well, yesterday, we believe that these three commercial tankers came under attack while they tried to pass through the Hormuz Strait. And the U.S., in response, launched attacks across radar, command and control sites, and anti-ship ballistic missile sites along Iran's coast to the south of the country, near the Persian Gulf, basically. And Iran, in return, retaliated by launching missiles and drones at the U.S. Navy's 5th Fleet in Bahrain, as well as Ali al-Salam Air Base in Kuwait. Those are two primary, basically, places where the U.S.

15:02military operates in and around the Persian Gulf. And after those retaliatory attacks, we saw the U.S. president basically coming out and saying during the NATO summit in Ankara that, as far as he's concerned, talking to Iran is a waste of time and the ceasefire is basically over. And how significant is it that the U.S. also revoked the waiver allowing Iran to sell oil globally? It's quite significant, but its weight is more symbolic or its impact is more symbolic than having an actual impact on the physical market. Even before the U.S. Treasury's decision to revoke that waiver, which allowed or which was supposed to allow Iran to sell its crude oil and oil products to the rest of the world for a period of 60 days, the Islamic Republic was finding it difficult to actually sell its oil.

16:00It's down to many reasons, from insurance to fears of sanctions and other complications that buyers had in mind. And in Asia, for instance, its largest export market outside of China, Iran was unable to sell oil to anywhere. So the actual impact on a physical market might be maybe more subdued than many people assume. And I think going forward, the price movement in the oil markets is going to be more defined by what happens to the ceasefire than the U.S. Treasury's decision last night on those waivers. When will we really find out if discussions are over? Are we going to have to wait until these funeral proceedings are wrapped up for the Supreme Leader, which is supposed to wrap up any day now, correct?

16:46That's right. They were supposed to wrap up tomorrow, basically, in Mashhad in Iran, which is where Khamenei was born. But I don't think we may have to wait that long. if the ceasefire is actually over, as Trump suggested, we should see a resumption in hostilities pretty soon. Unless, as was the case in some of the previous rounds of escalation, the two sides somehow, again, through negotiators and mediators such as Qatar and Pakistan, agree to continue to talk and leave this behind. Karen. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

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18:09I'm Karen Moscow. And I'm Alexis Christophorus. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak. Hi, I'm Tom Keen, inviting you to join me for the Bloomberg Surveillance Podcast. It's about making you smarter every business day. I'm Paul Sweeney. We bring you complete coverage of stocks, bonds, commodities, even crypto. All the information you need to excel in the markets. And I'm Alexis Christophorus. Listen to us for essential conversations with the smartest names in economics, finance, investment, and international relations. That's the Bloomberg Surveillance Podcast.

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