US & Iran Trade Deal Drafts; Oil Rises From Six-Week Low

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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 on talks between the U.S. and Iran. Both countries traded messages over the weekend seeking changes to a draft agreement that would extend their ceasefire and reopen the Strait of Hormuz. President Trump posted on social media that the talks will work out well, despite the latest clashes near the Strait. Former Trump National Security Advisor John Bolton says the president may be getting a deal that's best for him, but maybe not for the country.

2:23This is a deal about gasoline prices at the pump in the United States. Trump worries, obviously, about the price levels people are paying. He's worried about the effect on inflation. He's worried about the effect on the elections in November. But this is not a deal that really ends the war in a satisfactory way for the United States. Former National Security Advisor John Bolton spoke with David Gurra and Christina Ruffini on Bloomberg this weekend. Catch the show live every weekend starting at 7 a.m. Wall Street time on Bloomberg Radio, Bloomberg Television and the Bloomberg Business app. Well, Nathan, part of the ceasefire initiative would have Iran proxy Hezbollah stop all attacks on Israel while Israel refrains from further escalation in Lebanon.

3:03But Israel expended its ground assault into the country over the weekend. Bloomberg's Dana Kreich covers the Middle East and says it's the broadest incursion in a quarter century. They have seized a strategic ridge, which is the Beaufort Ridge, and that oversees the Galili, which is a lot of the northern community in Israel, which have come under fire from Hezbollah. This could be a problem for the U.S. and the Iranians. Iran has always said that part of any deal with the U.S. should ensure a halt to all conflicts in the region, primarily the one in Lebanon. And Bloomberg's Anna Krejci adds that the U.S.

3:39is sponsoring talks between Israel and Lebanon to end the crisis. And right now, Karen, oil is rebounding. Brent's headed for its first daily gain in four sessions. It's up more than 3 percent at$94 a barrel, while West Texas Intermediates above$90 a barrel. That's a gain of three and three quarters percent. Exxon Mobil executives are warning that U.S. crude reserves are running dangerously low. But National Economic Council Director Kevin Hassett says prices will come down as more traffic moves through Hormuz. When you get the straits open, then it's about 300 nautical miles per day for one of those big tankers.

4:15And so the people in Pakistan and India that have refineries that are mostly shut down are going to get their oil. They'll turn the refineries up and then refined product prices will go down globally. White House Economic Advisor Kevin Hassett appeared on ABC's This Week, heard every Sunday on Bloomberg Radio. Meanwhile, in New Jersey, Nathan, Governor Mikey Sherrill says federal officials will allow visitors back inside the Delaney Hall Immigrant Detention Center in Newark. The detention center overseen by Immigration and Customs Enforcement suspended visits last week as tensions escalated over living conditions for detainees.

4:49The situation reached a boiling point this weekend when protesters threw projectiles at police, set fires, and fought over barricades. Governor Sherrill told reporters that, quote, violent, chaotic clashes hurt everyone. I am very concerned about what's going on in Delaney Hall. And this is all taking away from the protesters who have been very, I think, effective at bringing attention to that. New Jersey Governor Mikey Sherrill called on the Department of Homeland Security to provide care and medicine for detainees, give them a chance to review their cases, and ultimately close the facility. Tune back to geopolitics, Karen.

5:24Defense Secretary Pete Hegseth delivered a major speech at the Shangri-La Dialogue in Singapore over the weekend and got some attention for an issue he didn't mention, Taiwan. Later, Hegseth sought to assure allies that staying quiet on the island is the best way to project American strength. The policy we have on Taiwan is the same as it was at the beginning of this administration. The only change you might see is how we talk about the entirety of it. What I talked about today was strong, quiet, but clear. And Defense Secretary Hagseth's softer language was a sharp contrast to his address a year ago.

5:58It came weeks after Chinese President Xi Jinping warned President Trump in Beijing that mishandling Taiwan could lead to clashes. Well, in South America, Nathan, a pro-Trump conservative outsider is making progress toward becoming Colombia's next leader. Celebrity lawyer Abelardo de la Espriella unexpectedly topped the first round of Colombia's presidential vote as Latin America heads into another highly polarized election. The conservative outsider is in a strong position to become the nation's next president when he faces leftist Senator Ivan Cepeda, an ally of the country's current president, in a June 21st runoff.

6:33Let's turn back to markets and the economy now, Karen. Former Federal Reserve Chairman Jerome Powell is warning the central bank will lose its credibility if presidents are free to dismiss Fed officials over policy disagreements. Bloomberg's John Tucker joins us with that story. Good morning, John. And good morning, Nathan. Powell may no longer be Fed chair, but that doesn't mean he's about to back down on the issue of Fed independence. If any administration finds a way to remove Fed officials over policy differences, then future administrations will do so as well. The public would lose faith that the central bank will make decisions based only on what's best for all Americans.

7:10The Fed's credibility would be lost. He was accepting the John F. Kennedy Profile in Courage Award in Boston. Powell's remarks come as the Supreme Court is deciding the fate of Fed Governor Lisa Cook. President Trump trying to fire her because, like Powell, she won't bend to the president's will. Powell endured countless verbal assaults by Trump and an investigation by the Trump Justice Department. A pal's remarks, his first public comments since he was succeeded as head of the central bank by Kevin Warsh. I'm John Tucker, Bloomberg Radio. Right, John, thank you. We have big news and big tech.

7:42NVIDIA is entering the personal computer market with a new chip called RTX Spark Superchip. Its goal is to loosen Intel's stranglehold on the market and modernize machines for the AI era. The chip will debut this fall in leading brands, including Dell and Lenovo, and will run Microsoft's Windows for ARM operating system. And NVIDIA CEO Jensen Wong says this is about rethinking the processor itself. We built CPUs for humans in the past. We need CPUs for agents, agentic systems. The properties are different. Why would the old CPUs be the same? NVIDIA CEO Jensen Wong spoke at the Computex trade show in Taipei and checking shares of NVIDIA this morning.

8:23They're up more than 2%. And global stocks can are set for new record highs with AI enthusiasm pushing equities higher. The Philadelphia Semiconductor Index of U.S. chip stocks is on course for its best quarter ever. Bloomberg Markets reporter Anthony Stevens says the index has risen almost 70 percent in just the last two months. The repeatability of the earnings that you're seeing across the tech space, that is up for grabs. But the fact that the earnings are amazing is not up for debate. You're seeing that in the macro numbers as well. Korean exports grew in the high 50 percent range. That's the fastest growth since before I was born, frankly.

8:59And that was Bloomberg's Anthony Stevens, as A.I. Bulls argue the rally is being driven by structural changes. And in DL News, Nathan Berkshire Hathaway will acquire Taylor Morrison for$6.8 billion in an all-cash deal, marking the conglomerate's first major purchase under Chief Executive Greg Abel. The offer is a 24 % premium to the home builder's Friday closing price, and Taylor Morrison CEO Cheryl Palmer will continue to lead the company.

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. Kenyan Media said that American medical personnel and equipment had arrived at a Kenyan airbase set to host a U.S.-backed Ebola isolation and treatment center. According to NTV, the move signaled that Kenya was pushing ahead with the establishment of the facility, ignoring the May 29th high court order that suspended it. Meanwhile, the head of the World Health Organization in the Democratic Republic of the Congo, Tedros Adhanom Ghebreyesus, says that community is key to controlling this rare form of Ebola.

10:09Everyone should take care of himself or herself and take care of each other as well. By doing that, we can stop this outbreak as soon as possible. At a ceremony, Gabriels has presented survivor certificates to four nurses who contracted Ebola while treating patients during the ongoing outbreak in Congo. A tragedy in Georgia over the weekend after a bride and groom were in a helicopter crash. Dave and Jessney Fiji waved goodbye to their guests attending the reception near Dawsonville. The couple were headed to Peachtree DeKalb Airport and then spent the night in a downtown Atlanta hotel. They would not make it.

10:49Dave's father, George, remembered his 25-year-old son. His child is a gift of God for us. When he was a God-fearing child, he was so handsome, beautiful. We could say it was a perfect wedding. The copter crashed in a remote wooded area of Dawson County. According to Fiji's parents, their daughter-in-law was sent to the hospital for treatment. The pilot was also killed. The NTSB is investigating. Texas Republican Senate nominee Ken Paxton will visit Senate GOP leaders in Washington to ease their concerns about his viability. Paxton, the state attorney general, settled a criminal securities fraud charge and was impeached by the GOP-led Texas House.

11:31Paxton faces Democrat James Tallarico, who his party hopes to be the first Democratic senator from Texas in more than 30 years. Global 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 upsets continue at the French Open. Four-time champion Iga Shiantek, the latest to lose. Zarina Sabalenka is the top seed. She's the only one of the top six seeds still in. She'll face Naomi Osaka later today. The only American left of the women's singles is Madison Key.

12:09She has an early match today. Two Americans left on the men's side. Both play their fourth-round matches today. Baseball in Sacramento, the Yankees beat the A's 13-8. They scored all 13 runs in the third inning. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Support for the show comes from Public. Public is an investing platform that offers access to stocks, options, bonds, and crypto. And they've also integrated AI with tools that can assist investors in building customized portfolios. One of these tools is called Generated Assets. It allows you to turn your ideas into investable indexes.

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16:03Iran's assets as part of a deal. It's one thing to provide unfrozen assets to a real government in Iran that represents the people. If we provide this government frozen assets, it will entrench itself still further. It's former National Security Advisor John Bolton speaking on Bloomberg this weekend. Joining us this morning from Dubai is Bloomberg News United Arab Emirates Bureau Chief Dana Kresh. Dana, thanks for being with us this morning. Where do things stand in the negotiations? And can we say the ceasefire is still holding this morning? Good morning. Good morning. Yes, on the talks front, I would say a stalemate, but we've seen the Iran and the US trading fire, just like in previous days with really no breakthrough for the supposed MOU.

16:44And it's probably not going to see the light today. Iran attacked earlier today, Kuwait again for the second time in a few days. And it said it was in response to US strikes on military targets in southern Iran. Now, the US Central Command saying it struck radar command and control sites for drones and Iran this weekend. So this, of course, adds to the mixed signals we've been seeing the last week and this weekend on whether a deal is close to be announced. And we remember from Friday, President Trump said he'd make a, quote unquote, final determination on the deal, but his meeting at the White House ended without an announcement.

17:21And today he just said, sit and relax. He's working on a good deal that'll be good for the US and its ally. Now, what we know is that The MOU draft is being sent back and forth between the two, of course, likely via the main mediator, Pakistan. The deal would open or reopen. Khamerl's extend the ceasefire to 60 days, which seems to be still holding despite the strikes on Kuwait. And during that 60 days, the nuclear program would be discussed. But as you've just mentioned, too, the president finds himself under pressure from several angles. You know, rising gasoline prices in the U.S., critics saying we should not, you know, unlock the billions of dollars that are in Doha for the Iranian regime now.

18:08And they actually want President Trump to maybe rein in the Iranian regime. Also, another angle is inflationary impact from the continued closure of Hormuz. And, of course, you know, allies in the Gulf who probably fear a resumption of the war and renewed attacks on their bases, just like we saw what happened with Kuwait. On top of all this, over the weekend, we saw one of the biggest incursions by Israel into southern Lebanon in many years, planning the flag at Beaufort Castle. In our last minute here, how could that complicate things? It could. Iran has always said the truce in Lebanon, a ceasefire in Lebanon, should be part of a deal with the U.S., and that was part of the ceasefire that the U.S.

18:48and Tehran agreed to earlier in April. And we saw Ghalibov today, the Iranian parliament speaker and lead negotiator for these talks, saying, you know, Israel's escalation in Lebanon and the incursions that we saw the weekend, as well as the naval blockade, are clear evidence of the U.S. not complying with the ceasefire. So this is probably putting the ceasefire in the region at risk. 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.

19:23You 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. 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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