Trump Promises "Last Chance" for Iran; Michigan's Primary Progressive Test

0:00Bloomberg Daybreak U.S. edition is brought to you by OTC Markets Group. OTC Markets' overnight platform for exchange-listed securities, Moon ATS, provides access to global securities in U.S. dollars from 8 p.m. to 4 a.m. Eastern, Sunday through Thursday. Learn more at otcmarkets.com slash moon. Moon ATS is operated by OTC Link LLC, a FINRA-registered broker-dealer, and is available only through participating broker-dealers. Healthcare doesn't always work great. If you've ever waited on a refill or couldn't schedule an appointment, you get it. That's the kind of stuff Optum is changing. They're using data and technology to integrate patient care, pharmacy, and everything else.

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1:20You'll have everything you need to scale your go-to market efforts. Elevate your wins with Adio. Start your free trial at adio.com slash iHeart. 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. President Trump says he is giving Iran a last chance to engage in talks after calling off what he says would have been a major attack on the Islamic Republic. I want to give him every last chance before decapitation. It's very tough to do what we have planned, still planned.

2:02We'll see what happens. President Trump spoke to reporters in the Oval Office. Now, Tehran denies it's in negotiations with the U.S., but it says talks with Oman to get more ships moving through the Strait of Hormuz are making progress. We get more from Bloomberg Middle East correspondent Abir Abu Omar in Dubai. Tehran and Oman are holding negotiations to open a middle passageway in the Strait of Hormuz that would allow for a trickle of movement of ships and vessels that have been trying to make their way through the Strait of Hormuz. And up until yesterday, we've really been still seeing cargo ships attacked in the Strait of Hormuz.

2:38And so this negotiation that is taking place between those two countries is still very much key about opening up a pathway that could help ships make their way through the waterway. Bloomberg's Zabir Abu Omar reports a senior Iranian official called on the U.S. last night to, quote, take the first step and change its behavior by returning to the terms of the interim deal that both sides struck in June. Elsewhere in Washington, Nathan Attorney General nominee Todd Blanche's confirmation may be moving forward in the Senate. Two holdout Republican senators are backing a deal with Blanche to formally rescind an order for a so-called anti-weaponization fund.

3:13And he's clarified the scope of President Trump's immunity deal with the IRS that limits it to the tax agency and not other agencies like the Justice Department. President Trump says he was not involved in the deal. I don't know what they agreed. I think Todd Blanche agreed to reconfirm things that he's already said. And what he said was okay. President Trump again speaking from the Oval Office. Administration critics say Blanche's deal still doesn't change the text of either the anti-weaponization order or the president's immunity from audits. And the Senate Judiciary Committee has scheduled a vote on Blanche's confirmation today.

3:49And Karen, elections are in focus today as well as voters head to the polls in a handful of states. Bloomberg's Amy Morris reports from Washington. Michigan voters will decide a competitive Democratic primary that will test the party's progressive wing. Representative Haley Stevens takes on former health official Abdul El-Sayed. The winner will face former Representative Mike Rogers in November. Virginia voters will choose nominees for the House and Senate, including in the second congressional district, where there could be a rematch between two-term Republican Jen Kiggins and the Democrat she unseated in 2022, former Representative Elaine Luria.

4:24Primary contests are also taking place in Washington, Kansas, and Missouri. In Washington, Amy Morris, Bloomberg Radio. All right, Amy, thank you. Let's turn to the markets now where futures are higher following yesterday's gains on Wall Street. The S &P 500 rose 1.5%. It is now just striking distance of a record. The positive earnings season is helping fuel gains. The S &P 500 companies are beating expectations at a rate of 86%. That's the highest in five years, according to Bloomberg Intelligence. And in earnings beats giving a lift this morning to shares of Palantir, Karen, they are up nearly 17%.

4:59The software developer and major military vendor also raised its revenue and income forecasts for the full year. Palantir CEO Alex Karp described demand for his company's data analytics tools as, quote, otherworldly. Well, Nathan, the earnings continue today with 50 companies reporting. They include drug makers Pfizer and Merck, as well as tech companies, advanced microdevices, and SpaceX. We get more on Elon Musk's SpaceX with Bloomberg's Charlie Pellett. It's SpaceX's first earnings report as a public company. Analysts are likely to press SpaceX CEO Elon Musk on the company's newly acquired AI business and the massive spending associated with it.

5:37Julie Zhu is research analyst at Moffitt Nathanson. What you're really going to see coming out of the numbers is you're probably going to see a feat in the AI business, and you're also going to see continued spend in that business. Key topics could also be progress on the company's massive Starship rocket and how quickly it will be able to launch satellites and people and plans for becoming a consumer wireless operator. In New York, Charlie Pellett, Bloomberg Radio. All right, Charlie, thank you. In Europe, HSBC has announced a new billion-dollar share buyback after reporting second-quarter earnings that beat estimates.

6:10The bank also raised its cost-saving target to$2 billion by the end of this year. We spoke with HSBC's CEO, Giorgio Hedri. We are becoming the stronger bank that we set out to build. We're very pleased with what we announced this morning. We're growing across all our indicators. Our revenue is growing. Our loans and deposits are growing. Our fee income is growing. we generated returns of 19.5 % on tangible equity. So this is a good demonstration of strong business momentum. We're also very pleased with the progress we're making on the strategy, which we're executing with precision, with discipline, and at pace.

6:47HSBC CEO Giorgio Hedri also says the lender will consider boosting its bonus pool for bankers if strong performance continues. The shares are underperforming this morning, Karen, they're down 1.6 percent. Well, BP shares, Nathan, they're higher. They're up one and a half percent. The oil giants adjusted net income more than doubled from a year earlier as the Middle East war roiled oil and gas markets. And we spoke earlier with CEO Meg O 'Neill. We still have quite a bit of work to do. So I've been with BP for four months now. I'm very pleased with many of the things I've seen. It's a group of what really amazing people who are very focused on delivering the highest value for the corporation and growing shareholder value every single day.

7:26But that said, there are significant areas for improvement. The balance sheet is first and foremost an area of challenge. You know, we're carrying financial liabilities when compared to the size of the corporation that are just too high. BP CEO Meg O 'Neill says several companies have expressed interest in buying BP's North Sea business. And as oil companies continue to rake in record profits during the Iran war, Karen, President Trump is criticizing the biggest oil majors in the U.S., saying they are, quote, making too much money. Chevron, too much money. Exxon Mobil, too much, too much money.

8:00When you look at one company where they made 12 times what they made the year before, they're going to give some of that back to the public and they better cut the retail price, the consumer price. Too much money. You're surprised I'm saying it. I'll say it loud and clear. I'm not happy about it. And again, Vice President Trump in the Oval Office, ExxonMobil and Chevron made$29 billion combined in the second quarter. That amounts to about$318 million per day, and it is more than three times the same period a year ago. Nathan, we have a milestone for Apple. The company said it exceeded$10 billion in annual sales in India for the first time last fiscal year.

8:39iPhones accounted for a significant majority of the sales. India is emerging as one of Apple's key sales regions outside of the U.S. and China, with the company steadily ramping up its retail network in the country. Karen, Amazon has become the fifth company to surpass a$3 trillion market value, joining NVIDIA, Alphabet, Microsoft, and Apple in that exclusive club. After the bell, it was announced that Amazon chair and founder Jeff Bezos filed to sell more than$4 billion worth of the company's stock, and those shares are lower, down more than 1 % in the pre-market. And we do have a programming note here.

9:15Nathan, Bloomberg Radio is introducing a new feature exclusively for Bloomberg.com subscribers and terminal clients. You can help shape our conversations by submitting questions for our analysts and experts to answer live on air. Subscribers can go to Bloomberg.com slash ask radio to send in questions and you may just hear them asked on the air. That's Bloomberg.com slash ask radio.

9:42Time 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. President Donald Trump said he's upset with U.S. Attorney Jeanine Pirro over her efforts to dismiss charges against the man accused of vandalizing the Lincoln Memorial reflecting pool. President Trump believes Pirro choked when dismissing charges against U.S. Olympic canoeist David Hearn. I was disappointed with Jeanine Pirro, really disappointed with Jeanine Pirro. She folded like an umbrella. Meanwhile, Hearns' attorney said this was proof the evidence was just not there.

10:21Joshua Kolb, manager of rapid legal response at Democracy Defenders Action. They finally had to face facts and face the reality that their entire case was crumbling before them. And so this is the only natural and logical next step, regardless of how highly unusual it is for this to happen. Pirro said the evidence provided by the Interior Department showed the contractor hired to replace the liner was to blame. In Michigan, state health officials say two people have died in the cyclospora outbreak. They are the first confirmed deaths in the U.S. related to the microscopic parasite. Officials said that both had underlying health conditions.

11:00An arrest has been made related to one of the three wildfires burning in Washington state. Aaron Farinacci, who is 37, was arrested last night for allegedly starting the old trails fire Saturday afternoon. Spokane County Sheriff John Knowles said the blaze consumed thousands of acres and destroyed hundreds of buildings, most of them homes. Knowles says he credits an observant citizen with reporting suspicious behavior before seeing smoke rising. He noticed the mail was bending down near some grass. At that point, the mail stood up and looked very nervous, according to our citizen witness. Sheriff Knoll says Farinacci will make his first court appearance today.

11:41Global News 24 hours a day and whenever you want it with the 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. A lot of wheeling and dealing before the baseball trade deadline. Maybe the biggest move was Baltimore trading away catcher Adley Rutschman, who was once the first overall pick of the draft, a three-time All-Star catcher. He got sent to the Red Sox. Luis Reyes, a three-time batting champ, goes from the Giants to the Phillies, who will move Bryce Harper back to the outfield.

12:14The Mets waving the white flag on the season. They traded away five different players. Mauricio Pochettino, the coach of the U.S. men's national team in the World Cup, keeps his job. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Bloomberg Daybreak U.S. Edition is brought to you by OTC Markets Group. Thinking about joining the exploding overnight market space, but unsure where to start? Designed to meet the needs of a growing international investor base, OTC Markets' overnight platform for exchange-listed securities, Moon ATS, provides access to global securities in U.S.

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14:18That's the Bloomberg Tech Minute brought to you by ChatGPT. Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChachiPT.com today by selecting Work Mode, available on Plus and Pro Plans. Let's talk about healthcare for a second. It doesn't always work the way people expect it to. If you've ever waited on a prescription refill or had a hard time getting the care you needed, you know the feeling. The system should just work better for everyone. That's exactly what the people at Optum are trying to do every day. They're a healthcare company linking patient care and pharmacy services and using data and technology to drive the whole system so care is connected, not complicated, for patients and providers.

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15:46This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. President Trump is delivering what he says is a final warning to Iran after calling off a major attack over the weekend to come back to the negotiating table. This is a last chance. This is not something that, if it doesn't happen, this is a last chance for them to sign a good document. That was President Trump and Oval Office remarks to reporters yesterday. Joining us this morning is Mark Champion, who covers the Middle East for Bloomberg Opinion. And Mark, do you see this as a potential last chance for Iran? Good morning. Good morning.

16:22I mean, we've been here half a dozen times before. I think there's, you know, it's perfectly possible that President Trump will order more airstrikes, you know, if the Iranians don't sign an agreement. You know, but there's a lot of kind of weirdness in here. So, first of all, you know, the U.S. says that the talks are between the U.S. and Iran. Iranians say they aren't. They're only talking to the Ormanis about a very limited deal on, you know, controlling the strait. So, exactly what the document is that, you know, President Trump wants them to sign, not quite clear. If it is the Ormani document, it's going to be one that, you know, gives the Iranians some control over the strait.

17:09They've been very clear that they're not signing anything that doesn't. And that's control that they didn't have before the war. And the purpose of that is, A, to raise money and, B, to maintain geopolitical leverage so that this becomes a deterrent in their kind of toolbox for dealing with other countries, for dealing with the U.S. Not exactly a great outcome for the U.S. So not kind of by definition a good document for the U.S. Well, one thing we have heard from the Iranians is that they want the U.S. to, I guess, come back to the terms of the June interim deal that seems like it's by the wayside now.

17:48With these talks going on with Oman, what are the chances of that happening, coming back to the interim deal? Well, a lot of the interim deal, you know, the interim deal is extremely vague. So when the Iranians say we want to get back to that, they mean that we want to get back to our interpretation of that deal. Their interpretation of that deal was that it said, and it actually did say, that the status of the strait would be down to a negotiation between the Iranians and the Omanis, and they would create a new arrangement. But their interpretation was that until that was all done, you know, they still got to control the strait.

18:32The American interpretation was, no, there's going to be free traffic. And ergo, you had the deterioration that we had and the end of the ceasefire, in essence. 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. Plus, listen coast-to-coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces.

19:19And 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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