Trump Reverts to Economic Squeeze of Iran; Colombia Quake Toll Tops 260

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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 Moskow. Here are the stories we're following today. Karen, we begin with the latest on the war in Iran. President Trump is reverting to economic pressure as the two sides remain in a stalemate. It is a marked reversal from the president's recent military threats against the Islamic Republic. Bloomberg Washington correspondent Tyler Kendall says the war is still a long way from resolution.

2:02It's very evident that both sides are trying to dig into their positions when it comes to the Strait of Hormuz, but there's very little sign that Iran is going to give up the leverage it has when it comes to the waterway, not just in terms of its grip on shipping in Hormuz, but also, importantly, we should point out the other disruptions to global shipping. Yemen's government confirmed that at least six people died in a Houthi attack in the Red Sea, marking the first such fatalities of a Houthi attack since this specific conflict has started. In Bloomberg, Tyler Kendall adds the Trump administration is relying on a steady increase in sanctions and its naval blockade to stifle Iran's oil exports.

2:39A White House official says the strategy has left Iran completely broke, and it comes as Iran is reorganizing its military to be more aggressive abroad. It's a sign Tehran is preparing for a protracted era of regional conflict. Well, Nathan, oil is falling this morning. Brent is coming off a six-day advance as traders await signs of progress on a reopening at the Strait of Hormuz. President Trump claims to have total control over the waterway, while Iran says users should remediate any local environmental harm. Checking prices right now, NYMEX crude oil down 1.9 % at$81.66 a barrel. Brent is at$87.41.

3:17And elsewhere in geopolitics, Karen, a European intelligence official is telling Bloomberg Russia may ramp up hybrid attacks against the Baltic states and Poland. The warning comes amid concern Moscow is trying to intimidate countries that support Ukraine. Bloomberg Chief Europe correspondent Oliver Crook says the Kremlin is not preparing a conventional attack or invasion, but is enhancing its shadow war with European nations. The broader context here is sort of important with all of these attacks that we're seeing that are landing to much damaging effect and the Russians, whether it's the refining operations, whether it's these ports in the Black Sea, the Russians are under serious pressure.

3:52And so there's a real question in terms of what retaliation from the Russians are going to look like. Obviously, they've been bombing the Ukrainians very aggressively over the last couple of months. But there is some question now with that desperation, with the impact it's having on the Russian economy, will they expand it further? So that's the warning we've been getting, obviously, from the Baltic nations. And Bloomberg's Oliver Crook says the warning comes as Germany has already been talking about a Russia-linked influence campaign ahead of its country's regional elections next month. Well, back in this country, Nathan, the White House is about to lose its most prominent voice.

4:23Bloomberg's Amy Morris reports Press Secretary Caroline Leavitt is leaving the role later this month. President Trump made the announcement in a social media post. He said Leavitt was leaving in order to spend time with her family and would, quote, now be one of my top outside advisors. Leavitt has served as press secretary since Trump returned to office in 2025. She recently gave birth to her second child. Leavitt said in her own social media post that the job was taking a toll on her family. The president did not immediately name a successor to Leavitt. In Washington, Amy Morris, Bloomberg Radio.

4:56Amy, thanks. Turning to markets now, U.S. government borrowing costs at auction have climbed to their highest level since the global financial crisis. A sale of benchmark 10-year treasuries produced the highest yield since 2007. Demand did hold up reasonably well. Today, attention turns to the 30-year auction that's expected to carry the highest rate in 25 years. Persistent inflation and swelling budget deficits are adding to the pressure alongside rising oil prices and competition from corporate debt sales. Well, Nathan, stocks traded close to record highs yesterday following a July consumer price rating that reinforced hopes the Fed won't raise rates.

5:33Ed Yardini with Yardini Research tells Bloomberg he expects a rate hike next month, but he thinks equities will continue to melt up. The markets were sort of surprised when during the first FOMC meeting that was chaired by the new Fed chair, and that is Kevin Warsh, where he came out so hawkish and said that his number one priority was to have price stability because he admitted that the Fed has failed to get down to 2 % for over five years. and then in July he said it again and the market said, well, you said that in June, why don't you do something in July? And so I think the markets are expecting a September rate hike.

6:15And look, I think the bond market would react positively to it, which then would be a positive for the stock market. Ed Yardeny with Yardeny Research raised his year-end S &P price target to$8 ,400, taking the highest prediction on Wall Street even higher. And Karen, the AI trade has regained momentum this morning. South Korea's Kospi index rallied 4 % to enter a technical bull market. Chipmakers Samsung and SK Hynix both added more than 4%. Though there is still some caution out there following poor earnings from Cisco systems and a sales decline from Cerebra systems. Well, elsewhere on the AI front, Nathan sources tell Bloomberg.

6:53Anthropic is in talks to buy Descartes AI for about$6 billion. dollars, Descartes makes world models and software that can reduce the cost of training AI by helping chips work more efficiently, which could help Anthropics' existing infrastructure absorb more demand. The deal I've completed would mark Anthropics' largest known acquisition ahead of a hotly anticipated initial public offering. Overseas, Karen, Japan's government is backing the prospect of another Bank of Japan interest rate hike in the coming month. Sources tell Bloomberg the BOJ is considering it in September or October as officials seek to counter persistent weakness in the end.

7:29Well, in Europe, Nathan, the UK's economy grew four tenths percent in the second quarter and June GDP beat expectations. The country saw services growth in sectors like alcohol manufacturing and TV production, with the World Cup boosting June sales and warm weather lifting retail and accommodation. Bloomberg Sam Unstead says that momentum is expected to slow. Growth has actually been pretty resilient in the UK. It's actually been fairly solid. That resilience, though, will be tested much more as we go into the second half of the year because particularly in the last month or so, almost everything has been dominated by oil prices and AI.

8:06And on the oil side of things, the UK is very vulnerable to energy shocks and now very vulnerable to an oil price staying elevated for a long period of time. So the uncertainty around that is the thing that's going to start to weigh more and more as the year goes on. And Bloomberg Sam Unstead adds the risk of prolonged conflict in Iran could make it harder for the Bank of England to cut interest rates. Well, now, Karen, we want to bring you the latest on Monday's deadly earthquake in Colombia. The death toll has risen to 265. Nearly 3 ,500 were injured. 500 are still missing. Colombia's president has moved to declare an economic emergency to confront the fallout.

8:40The 7.4 magnitude quake was the strongest to strike the country in 47 years. And finally in sports, Nathan Thrive Capital founder Joshua Kushner and former Disney CEO Bob Iger made an offer to buy the Los Angeles Lakers for$12.5 billion, and they did it without the help of bankers. Iger says the negotiations took a matter of a few days, and the final deal came together in just the past 24 hours, according to Iger. We get more from Bloomberg sports reporter Randall Williams. It is absolutely huge news. It's a shock to the sports world to see a franchise like the Lakers turn over. I believe they sold in 24.

9:16I don't think it was last year, but to see them turn over twice and add$2 billion in valuation is absolutely shocking. And Bloomberg's Randall Williams says the deal has not yet closed, but it would mark the highest ever price for a sports team.

9:32Time 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 John Tucker. John, good morning. And good morning, Karen. And Luigi Mangione's lawyers are discussing a possible guilty plea in the fatal shooting of health care executive Brian Thompson. The plea talks come ahead of a Friday hearing. The 28-year-old Mangione is facing both federal and New York state charges over the shooting of Thompson in December of 2024 outside a Midtown Manhattan hotel. President Trump being sued in New York by two media organizations over Trump Media and Technology Group's plan to sell faster access to his posts on Truth Social.

10:07More from Bloomberg's Charlie Pellett. News organization The Intercept Media and the non-profit Freedom of the Press Foundation are asking a court to block the plan, calling it, quote, extraordinary, corrupt, and unconstitutional. They argue that the First Amendment guarantees equal access to a president's public pronouncements and does not permit early access to be sold. Last month, Trump Media, of which the president is the largest shareholder, announced that it will be selling faster access to Trump's market-moving truth social posts. In New York, Charlie Pellett, Bloomberg Radio. According to ABC News, families and loved ones of sailors aboard the USS Abraham Lincoln stationed near Iran are raising concerns of reported poor conditions on board, including a lack of food, hygiene products, and clean water.

10:57The aircraft carrying its 5 ,000 sailors and Marines are now nine months into deployment supporting the war with Iran. In Ohio, first responders racing to rescue more people from rising floodwaters. The town of Crooksville was hit particularly hard by intense storms. Governor Mike DeWine toured the area. So this is a resilient community. These are resilient communities. These are resilient counties. And they will come back, as they always have come back. Thousands are still without power in the Midwest. And New York City's five pensions beat their investment target over the past fiscal year, thanks to a record-breaking stock market.

11:33Word comes from the city controller who says the funds for police officers, firefighters, teachers, and civil employees and school personnel returned 13 % in the year through June 30th. Global News 24 hours a day. And whenever you want it with Bloomberg News Now, I'm John Tucker. This is Bloomberg. Karen. Thanks, John. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. The Lakers are being sold for the second time in just over a year. the Buss family, long-time Laker owner, sold to Mark Walter for$10 billion. Now Walter is selling to Josh Kushner and former Disney CEO Bob Iger for$12.5 billion.

12:11Russell Westbrook retiring from the NBA at age 37 after an 18-year career, fifth all-time in assists, the most triple-doubles in NBA history. Postseason golf begins the FedEx Cup. First round starts today in Memphis. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up After this.

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13:57The effort marks an expansion of DoorDash's in-house robotics efforts to reduce reliance on human couriers for some orders, as their wages constitute a key expense to the business. Drones are also a way for DoorDash to cut delivery times on orders from more remote locations that some Dashers may not want. That'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. Amazon Health AI presents Painful Thoughts. Why did I search the internet for answers to my cold sore problem?

14:41Now I'm stuck down a rabbit hole filled with images of alarmingly graphic sores in various stages of ooze. I can clear my search history. but I can never unsee that. Don't go down the rabbit hole. Amazon Health AI gets you the right care fast. Health care just got less painful. 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. Now into a six month of war with Iran. President Trump is now leaning into economic pressure to try to get the regime to give in. Treasury Secretary Scott Bessett has been talking about Operation Economic Fury for months.

15:24The United States has imposed a financial stranglehold on the world's leading state sponsor of terrorism. That was Treasury Secretary Scott Bessett discussing the strategy at a G7 summit back in May. Joining us this morning from Dubai is Bloomberg News Middle East managing editor, owner Ant. And I guess the question this morning, owner, is with the economic pressure being brought to bear on Iran for so long. How much more can the U.S. inflict and how much more can Iran take? Good morning. Good morning. The realistic answer to that question, Nathan, is that, yes, the economic pressure is far greater than what it was, especially when compared to prayer war era.

16:05And it is taking a toll on Iran combined with the damage from the war on their infrastructure. We are seeing a spike in inflation and a depreciation in the Iranian currency. But is it enough to cause a kind of shift in popular sentiment that Trump is probably hoping to see in a short period of time? I highly doubt it. Iranians did take the streets late last year and earlier this year, but that met police crackdown and that resulted in the death of thousands of people. So it's really difficult to see repeats of the same thing. We haven't seen any indication of popular discontent since the war began, both because of the possible police brutality earlier this year and also because of the fact that wars do tend to basically rally people around the flag.

16:55And I think we're seeing some of that as well. If we see even further economic pressure, could that start to blow back on the U.S.? well the economic pressure is mainly reinforced by the u.s blockade which is now at the heart of the current impasse that is holding up negotiations between the u.s and iran and it is a taking a toll a huge toll on the global economy which will obviously find its way back on the american economy as well but also there is a more direct impact which we are seeing on both on gasoline prices in the U.S., which is a major source of concern, and also the depletion or at least erosion of strategic petroleum reserves.

17:38So yes, too much pressure will eventually cause a blowback on the U.S. just as much as it is causing damage on the Iranian economy. Are we seeing in our last 30 seconds, owner, any sign that this pressure, this renewed pressure on the economic side is having any impact on the indirect talks? No, I don't think so. The immediate diplomatic picture remains extremely difficult. Efforts to reopen the Strait of Hormuz are essentially deadlocked with Iran basically digging in on its position that the U.S. must meet its demands before the waterway can fully reopen. And those amounts are very significant, as you know, including the lifting of sanctions as well as an end to the war against Iran-backed groups across the region, Nathan.

18:20This 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. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it, in five minutes or less.

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