Trump Dismisses ‘Little War’ With Iran, Woman Shot Dead by NYPD

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1:45Bloomberg 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 and new attacks this morning near the Strait of Hormuz. The maritime security consultant, Marisks, says two oil supertankers were hit with unknown projectiles this morning in quick succession while transiting the choke point near Oman. This follows the first U.S. strikes on Iran in about a month. At the White House, President Trump says Iran is a failed nation. Their leaders are largely dead. their navy is gone, their air force is gone, their surveillance equipment is almost entirely gone.

2:33That doesn't mean we won't smack them. President Trump is dismissing concerns that the return to conflict would drain U.S. firepower. He says it's a, quote, relatively little war for us. But the war is flaring up, as we hear from Bloomberg Middle East correspondent Abir Abu Omar in Dubai. We saw the first military strikes in the region for the first time since July. So in over a month, really bringing back those tensions in the region. Iran retaliating against the initial U.S. strike by hidden countries in the region, namely Jordan and territorial waters in the United Arab Emirates. Meanwhile, Bloomberg Zabir Abu Omar reports Iran's president is calling on the U.S.

3:11once again to return to the interim peace deal that both sides agreed to in June. He tells Iran state television his country will reciprocate if the U.S. does so. Well, Nathan, as the war continues, the Army is losing its top civilian leader. A source confirms to Bloomberg, Army Secretary Dan Driscoll has submitted his resignation to President Trump. Driscoll had clashed repeatedly with Defense Secretary Pete Hegseth over personnel and leadership decisions. He reportedly resisted efforts to remove women and black officers, among others, from promotion lists. Driscoll's departure comes nearly a year after Hegseth fired Army Chief of Staff Randy George.

3:48The two work closely together on efforts to modernize the Army and often tag team on speaking engagements. With both leaders gone, the Army now has no Senate-confirmed leadership. In New York City, Karen, a woman randomly stabbed two people in Times Square, killing one of them and wounding the other. This happened just before 4.30 p.m. next to a New York City Police Department substation just outside one Times Square. That's the building that hosts the city's annual New Year's Eve ball drop celebration. Here's New York City Police Commissioner Jessica Tish. During the encounter, she told the officers, quote, I'm not dropping anything.

4:26I would rather kill both of you. She repeated, I will kill you. A police shot and killed the 49-year-old woman from Queens. They say she had mental health issues. In Massachusetts, Nathan, Democrats will decide the latest head-to-head matchup between the party's moderate and progressive wings with a recurring theme, progressives versus moderates and longtime incumbents versus significantly younger challengers. Bloomberg's Amy Morris reports. Senator Ed Markey faces a competitive Democratic primary challenge from Representative Seth Moulton in his bid for a third full term. Markey, who turned 80 in July, is the second oldest sitting senator seeking re-election in 2026.

5:09Moulton is a six-term congressman who will turn 48 in October. Markey has had a slight financial advantage, raising and spending more than$8 million compared with Moulton's$6 million. Massachusetts voters will also choose nominees for U.S. House, governor, and several state and local offices. Amy Morris, Bloomberg Radio. All right, Amy, thank you. Well, back in Washington, President Trump has scored a major legal victory in his bid to keep building a White House ballroom. The Supreme Court is letting the construction continue for now, brushing aside two lower court rulings that the project probably violates the law.

5:42Bloomberg Legal Reporter Zoe Tillman has more. What it came down to was whether the historic preservation group that sued had standing to bring this case in the first place. And lower courts had determined that they did. And the justices here determined that they were likely to lose on that question. Bloomberg Zoe Tillman reports Chief Justice John Roberts joined with the court's three liberals in arguing that Congress needed to give express authority for the construction. The majority did not rule on the merits of whether the ballroom project is lawful. White House says it's 65 % complete and is on track for full completion by August of 2028.

6:19Well, let's turn to the markets now, Nathan, where global bond yields are jumping to the highest levels in almost two decades. And Bloomberg's John Tucker joins us with the very latest. John, good morning. Good morning, Karen. The yield on a Bloomberg gauge of global sovereign bonds has advanced to 3.72%. Now, that's the highest since mid-2008. The latest catalyst driving yields higher has been Fed Chair Kevin Worsh's speech Friday, where he doubled down on his vow to finally tame inflation. Now, if Treasury Secretary Scott Besson is worried, he didn't betray that during an interview on CNBC. U.S.

6:54bond market this month will have been the best performing bond market. The 30-year, the yield is down. The 10-year, the yield is flat. No other major bond market can say that. Well, not since 2006 have yields on the longest maturity U.S. Treasuries been this high for this long. Inflation and the size of deficits around the world are leading traders to demand more compensation for holding bonds. In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. As for stocks, futures are lower this morning following the escalation in the Middle East. And as we begin a new trading month, September is historically not always a good one for the bulls.

7:32We get more from Bloomberg Markets reporter Bailey Lipschultz. Over the last three decades, the S &P 500 has lost almost 1 % in the month of September. And that does mean a big test for the S &P 500 and other stocks, especially where we're seeing chip makers, the likes of NVIDIA, AMD. The big talk of the town has been pulling off their levels that we saw back in the June and July timeframe, hitting a bit of resistance. And that's forcing equity bulls to kind of rethink what the rest of the year could look like. We have what could be a live Fed meeting in the middle of the month. And that's driving investors and some analysts to recommend that investors look towards the SPW, an equal weighted index, which is spread across those 500 companies and not as concentrated on the AI trend that we've been seeing really power this entire market higher this year to seemingly endless record highs.

8:24And Bloomberg's Bailey Lipschultz notes the Philadelphia Stock Exchange Semiconductor Index is still about 22 percent below its peak. Nathan, it's a new era at Apple. Tim Cook has handed the reins to John Ternus, who takes over as CEO today. And Bloomberg's Tom Busby has details. Now, former Apple CEO Tim Cook told employees in a letter Monday he'll miss the role he's had as chief executive of the world's second largest company for 15 years, but says he has, quote, enormous comfort in the leadership of his replacement, John Ternus. Now, Ternus joined Apple in 2001 on the product design team, became VP of hardware engineering in 2013, and was promoted to senior VP of that same unit in 2021.

9:05The challenge for Ternus now, innovating with new products, features and apps, growing sales and services, and accelerating Apple's AI offerings. Tom Busby, Bloomberg Radio. All right, Tom, thank you. And by the way, Apple shares, they've soared 2 ,275 % since Cook took over from legendary founder Steve Jobs in 2011.

9:29Time 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. The number of people killed in catastrophic floods in Nepal and China has risen above 1 ,000. Authorities in Nepal said more than 3 ,900 people remain missing, including 583 foreigners. Close to 12 ,000 people have been rescued so far. The bodies of two friends, a Texas chiropractor and a martial arts studio owner, have been found after a major flash flood swept through the Grand Canyon. Officials said that one person remains unaccounted for after about 80 others were rescued, including Dan Evans.

10:09He says he was airlifted from the north rim of the canyon. It sounded like a train, which is unusual for the canyon. You know, it's pretty quiet down there generally. And it just sounded like boulders were falling down the canyon, like maybe a train was coming and it was getting closer and closer. Evans says he plans to keep hiking. A developing system along the Gulf Coast may strengthen to a tropical storm and make landfall later today. Millions along the Gulf Coast expect heavy rain, dangerous storm surge, and flash flooding to parts of Texas and Louisiana. Texas Governor Greg Abbott. If you don't have to be driving around, do not drive through what should be very heavy rain in around the Harris County area.

10:53Many Houston area schools plan to be closed today. A former gang leader was convicted of murder for orchestrating the drive-by killing of hip-hop legend Tupac Shakur in Las Vegas. Dwayne Davis was found to have a gun and ordered a fellow gang member to shoot Shakur in 1996. Davis wrote a self-published memoir on the shooting in 2019. Jurors in Massachusetts will continue their deliberations today in the Lindsay Clancy murder trial. The jury has to determine whether Clancy is criminally responsible for strangling her three children back in 2023. Her attorneys say she was suffering from postpartum psychosis.

11:28Global 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 Cubs and Brewers played at Wrigley Field, and the Cubs hit nine home runs. That's the second most in a major league game ever. Alex Bregman had his second three-home run game of the last three weeks. The Cubs beat the Brewers 17-3. At the U.S. Open, the defending champions took the court, and Rita Sabalenka won in the straight sets. She's going for a U.S.

12:02Open three-peat. and Carlos Alcaraz victorious in his return after missing the last five months with a wrist injury. 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. 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.

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14:36Coast 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, and there are new reports of attacks near the Strait of Hormuz after the first round of strikes between the U.S. and Iran in about a month. President Trump is dismissing the impact on American firepower, saying it's Iran that needs to worry. They're a failed nation. They've got 350 percent inflation. They have no currency. They're not paying their soldiers. Their leaders are largely dead. That was President Trump speaking to reporters in the Oval Office.

15:14And joining us this morning from Istanbul is Bloomberg Middle East Breaking News editor Patrick Sykes. Patrick, update us on what's happening in and around the Strait of Hormuz this morning. Good morning. Good morning. Yeah, we've had two oil supertankers that have been struck by projectiles over the past few hours in the area of the Strait of Hormuz. Both of them appear to have been using the southern corridor through the strait. That's the one close to Amman's coast rather than close to Iran's on the far side of the strait. I think what it points to is Iran and the U.S. really stepping up the battle for who claims control over the strait.

15:58In the past week or so, we've had Trump saying that the U.S. has successfully demined it. Iran has come out and denied that. Iran is very conscious that its main leverage in this war is its ability to exert control over the strait. and every barrel, every tanker of oil that the U.S. military is able to safely escort out is eroding that leverage and Iran is trying to push back and reclaim some of it. We're seeing a reaction in the oil market this morning with both Brent and West Texas Intermediate crude up around 2%. What's the signal that we're getting in the commodities markets about where this could go from here?

16:40I think all is reacting to that step up in attacks. Of course, in the past couple of days, we also had the US attacking the Iranian mainland for the first time in about a month. So while the baseline remains kind of fairly low intensity, we have seen these upticks of increasing intensity and at increasing frequency. So I think taken together, that points to the fact that, you know, fundamentally the two sides are still very far apart on the outlook for the Strait of Hormuz. Iran, for its part, was saying today that if the U.S. were to return to the memorandum of understanding that sets up the initial ceasefire back in June, that it would reciprocate in kind.

17:28So there is clearly still an interest in a diplomatic solution. But for the moment, We've got the U.S. preferring to go down this route of economic pressure rather than trying to return to the framework of the MOU. With that in mind, that the economic pressure is still being brought to bear, is there a sense here that with these latest comments that we're hearing from whatever side of Iran's leadership is speaking out publicly, that there could be room for diplomacy? We've got about 30 seconds left. I think Iran will always be happy to take the message. And if there were a scope for a return to the MOU, that would be a solution that it's happy to take.

18:10In the meantime, what it's trying to do is push back on the idea that the U.S. can unilaterally pressure Iran's economy. The Iranian president is at the Shanghai Cooperation Organization Summit this week and is meeting with as many world leaders, China, Russia, India, that he can in order to shore up both diplomatic support through the photo opportunities and everything that comes with it, and some hopefully comments on a positive outlook for trade in spite of that U.S. pressure. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

18:49Look 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. 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.

19:27I'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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