Trump Teases End to Iran War; 'Historic' Israel-Lebanon Talks

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1:44Learn more at thehartford.com slash risk mitigation. Policies provided by Hartford Fire Insurance Company and its property and casualty affiliates, Hartford, Connecticut. it. 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, hopes are building that the U.S. could be close to winding down its war with Iran. Both sides are looking to arrange a second round of peace talks before the two-week ceasefire ends next week. President Trump told the New York Post it could happen in the next two days. He had this to say about the conflict in an interview with Fox Business.

2:27I view it as very close to over. You know what? If I pulled up stakes right now, it would take them 20 years to rebuild that country. And in another interview with ABC News, President Trump predicted the next two days will be amazing. We get more from Bloomberg's Jumana Bersechi in Dubai. This is just President Trump himself. And I will also remind everybody that the Iranian side haven't actually confirmed anything. They haven't said anything. There are no new updates since the Iranian president, President Shkhan, yesterday said that they were inclined to continue with negotiations so long as it's done within, quote unquote, the international framework of law.

3:05Bloomberg's Jumana Berset, she reports in the meantime, the U.S. is enforcing a blockade of the Strait of Hormuz with a dozen ships aimed at curbing Iran's oil exports. Iran's semi-official Fars News Agency reports a sanctioned Iranian supertanker broke through the blockade this morning and an Iraq-bound supertanker sailed into the Gulf through the Strait on its second attempt this morning, making it the first crude carrier to make the passage since the blockade went into effect. Nathan, while the U.S. and Iran are seeking another round of talks, Israel and Lebanon met for the first time in more than 30 years for high-level talks in Washington.

3:40Paul Wallace is Bloomberg's managing editor for the Middle East. These were the first direct talks between Israel and Lebanon since 1993 in more than three decades. So that in itself is important. These two countries don't formally recognize each other. Rubio called it historic. That's probably a bit too strong, at least at this stage. But, you know, although not much came out of the talks, there wasn't too much that was negative. They didn't sort of break down. You didn't have the Israelis or the Lebanese saying they were a waste of time or anything like that. So in that sense, it's a baby step.

4:17Bloomberg's Paul Wallace says Hezbollah, a key player in the conflict, has not been invited to the discussions. Well, Karen, European Central Bank President Christine Lagarde says the economic crisis brought on by the Iran war means an early exit from her role is not an option. Lagarde spoke with Bloomberg's Francine Lacroix in Washington, where she's attending the IMF spring meetings. When there is big clouds on the horizon, the captain does not leave the ship. And this captain is not going to leave the ship because I see clouds. European Central Bank President Christine Lagarde spoke to Bloomberg as traders bet on two full quarter point rate hikes by the ECB this year.

4:54Catch the full conversation on our new video experience on the Bloomberg Business app. Meanwhile, Nathan, former Treasury Secretary and ex-Fed Chair Janet Yellen says she still sees prospects for a rate cut here in the U.S. later this year. Speaking at the HSBC Global Investment Summit in Hong Kong, Yellen did warn that the oil shock caused by the war in Iran clouds the outlook. Yellen expressed concerns over the Fed's independence under President Trump, saying his calls for lower rates risk undermining the credibility of the nation. We're hearing the current Treasury Secretary Scott Besson says President Trump's tariffs could be restored by July.

5:31Speaking at a Wall Street Journal event, Besson indicated levies could return to levels that were in place before the Supreme Court struck down many of them. We had a setback at the Supreme Court in terms of the tariff policy, but we will be implementing or conducting Section 301 studies so that the tariffs could be back in place at the previous level by beginning of July. That was Treasury Secretary Scott Besson speaking yesterday. After the Supreme Court struck down many of his global tariffs, President Trump imposed a temporary 10 percent levy that covers many imports. That tariff is due to expire in July.

6:08Well, Nathan, Vice President J.D. Vance is adding to President Trump's criticism of Pope Leo XIV over his opposition to the war with Iran. The American-born pontiff posted on social media last weekend that anyone who follows Christ is, quote, never on the side of those who once wielded the sword and today drop bombs. Vance says he doesn't think those comments are based on theological truth. I think that it's important, in the same way that it's important for the Vice President of the United States to be careful when I talk about matters of public policy. I think it's very, very important for the Pope to be careful when he talks about matters of theology.

6:44Vice President J.D. Vance is one of the most prominent Catholics in the U.S. He spoke at a Turning Point USA event in Athens, Georgia. It's turn to markets now, Karen. Futures are little changed following another day of gains on Wall Street. In fact, the S &P 500 is now trading near all-time highs, and the tech-heavy NASDAQ 100 rose 1.8 % for a tenth straight day of gains. That's its longest such streak since 2021. Well, in Europe, Nathan, Hermes shares they're falling the most on record. The luxury goods firm reported first quarter sales that missed analyst estimates. It blamed the Middle East war for disrupting sales.

7:22Currently, shares of Hermes are down 9%.

7:28Time 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. California billionaires are stepping up their efforts to boost San Jose Mayor Matt Mahon in the race for state governor. They're rushing to fill the vacuum left by Democrat Eric Swalwell's abrupt exit. It comes as the sudden resignations of Swalwell and Texas Republican Tony Gonzalez from Congress receive bipartisan support on Capitol Hill. The two congressmen are accused of sexual misconduct and were expected to face expulsion votes.

8:03House Democrat Alexandria Ocasio-Cortez of New York. I think the most important thing right now is to center these women and their bravery in coming forward. I'm glad that Eric Swalwell is leaving. Meanwhile, another woman has come forward with allegations against Swalwell. Former model Lana Drew says she believes he drugged her drink in 2018 and raped her while she was unconscious. Drew's explained in a news conference why she didn't speak up sooner. My delay in taking action against Eric was driven by fear, not doubt, fear of his political power. Swalwell has denied what he calls serious false allegations made against him.

8:47New York Mayor Zoran Mamdani unveiled more about his plan to open a city-run grocery store in each of the five boroughs. The mayor says the stores would sell discounted food to New Yorkers. Between 2013 and 2023, grocery prices increased in New York City by nearly 66 percent, significantly higher than the national average. Mamdani says the first location in East Harlem is scheduled to open in 2029. New York Governor Kathy Hochul is backing a new tax on second homes in New York City worth at least$5 million to raise cash for the city's struggling budget. The goal is to raise$500 million a year to help New York City's deficit.

9:28Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Erin. Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. Wild start to the NBA play in a game between Miami and Charlotte when the Hornets' Kobe White hit a turnaround three with 11 seconds left. The game went to overtime, and the Hornets had a five-point lead in the final minute. And then Miami went up by one with eight seconds to go. LaMelo Ball hit a layup with four seconds remaining. Charlotte won by one. Portland won in Phoenix to advance to the first round.

10:04The Washington Capitals finished their season with a win at Columbus. The question now is, was this the last game of Alex Oveston's career? He may retire. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. The thing about AI for business, it may not automatically fit the way your business works. At IBM, we've seen this firsthand. But by embedding AI across HR, IT, and procurement processes, we've reduced costs by millions, slash repetitive tasks, and freed thousands of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off, deep in the work that moves the business.

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12:07The war is close to over. That's what President Donald Trump is indicating in a series of interviews ahead of the expiration of the two-week ceasefire with Iran early next week. Vice President J.D. Vance says the president's holding out for the grand bargain. He really wants a deal where Iran doesn't have a nuclear weapon. Iran is not state sponsoring terrorism, but also the people of Iran can thrive and prosper, prosper and join the world economy. Vice President J.D. Vance spoke in Athens, Georgia last night. And joining us this morning from Dubai is Bloomberg Middle East correspondent Jumana Bersechi, the anchor of Bloomberg Horizons.

12:42Jumana, it's great to speak with you once again. What is the prospect for another round of talks? It does sound as though the president is is pretty optimistic. Good morning. Yeah, good morning. And you're right. It's almost as though the president, President Trump is willing this to happen. And he's had several interviews the last 24 hours indicating that he does think another round of talks is going to take place. He suggested to a New York Post journalist that it could happen in Islamabad. I will just tell you some detail here. The Pakistani foreign ministry put out a statement this morning saying that their prime minister and their foreign minister are actually embarking on a trip around the region in the next couple of days.

13:20So they'll be visiting Turkey, Qatar, and Saudi Arabia. That's going to take place between April 15 and April 18. So you've got to assume that if the talks are going to go ahead in Islamabad, it's unlikely that it's going to happen, that they're going to happen before April the 18th. Now, there is, of course, another option, which is that another country mediates and hosts these talks. I know Switzerland have put their hat into the ring. And then the final point to consider is the Iranians have been very quiet. We have not had any confirmation yet from their side that they are signing on or subscribing to another round of talks.

13:55All we have is comments from the president yesterday suggesting that they are open to further negotiations as long as they're conducted within the framework, quote, of international law. In the meantime, Jumana, we just have this report crossing from the Washington Post that the Pentagon is sending thousands more troops to the Middle East in coming days. What impact could that have? You will recall, I think the last time we spoke about this about a week ago, that the U.S. were looking to beef up their military presence in the region. We reported that another aircraft carrier, the USS George H.W.

14:31Bush, had departed from the U.S., was making its way to the region. From what we understand, it's days away from arriving to the region. But Washington Post are saying that alongside that aircraft carrier, there will also be about 6 ,000 troops aboard. And remember, there's another aircraft carrier also making its way, the Boxer, which is estimated to have more than 4 ,000 troops on board as well. That is in addition to the estimated 50 ,000 personnel that are already being deployed in the region. And so you have to think of this as perhaps a two-pronged approach that the US are applying to Iran right now.

15:08They've got the economic approach, which is the blockade of the blockade, so to speak, on the strait. They're trying to cut off Iran's oil lifeline. And then you've got the military pressure coming through with this extra deployment and the real threats once more of further military intensification if Iran doesn't come back to the negotiating table. Is there a sense then that on top of this blockade of the Strait of Hormuz and these reports that more troops could be coming in that that could pressure Iran back to the table? We have just about a minute left. Yeah, well, so far, as I said, Iranians have been pretty quiet.

15:44Typically, they would be quite defiant. And we reported, our colleagues at Bloomberg reported that they were actually considering pausing any shipments going through the Strait of Hormuz in anticipation of those next round discussions. From what we understand and from various experts we've spoken to, I think Iran's consideration now is how can they get the best deal possible? So not just on the nuclear enrichment, but also in terms of lifting sanctions. At the end of the day, what this regime has cared about the most is their survival. It has been an existential war for them. They've sustained and absorbed the cost, but as long as they come out the other side having survived, they will paint that as a victory.

16:23This 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.

17:03Search 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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