US Bombs More Iran Targets, Growing Fed Inflation Fears

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1:44Bloomberg 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 the war with Iran. For the second time this week, the U.S. has gone after Iranian military targets as both sides struggled to move ahead on a peace deal. A U.S. official says four Iranian drones targeting a commercial ship were shot down and a launch unit near the Strait of Hormuz was hit. Iran says it targeted the bases in Kuwait where the U.S. attacks came from. All this as President Trump insists Iran wants to make a deal.

2:22Iran is very much intent. They want very much to make a deal. So far, they haven't gotten there. We're not satisfied with it, but we will be. We will be either that or we'll have to just finish the job. President Trump spoke at a White House cabinet meeting heard live on Bloomberg Radio. Bloomberg's head of Middle East coverage, Stuart Livingston-Wallace, reports the president may be in a bind. Iran has shown itself to have an exceptionally high pain threshold. And I suspect does consider this to be an existential moment for the regime and therefore, you know, is not prepared to make a lot of concessions, if any concessions.

2:58what we can see. Bloomberg Stewart Livingston-Wallace reports President Trump appears to be caught between Iran's demands for financial relief and ends who attacks and Republican hawks who are urging him to finish the job or at least not sign a bad deal. Nathan, now to the latest in the war in Ukraine. Vladimir Zelensky is rejecting the idea of partial membership in the European Union. In a letter to senior EU officials, he argued that the country deserves full membership because its forces are defending the bloc from Russia. Here's Zelensky speaking through an interpreter. We understand that much of the world's tension is currently focused on the war in Iran, but we must also end the war here in Europe, a bloody conflict that has now been raging at full scale for a fifth year.

3:41The sooner we can strengthen protection against ballistic missiles, the sooner we can make diplomacy work. Zelensky's comments come after German Chancellor Frederick Mertz suggested Ukraine could be granted an associate membership as an interim step before a full accession in the future. Well, now let's turn to politics at home, Karen. Congressional Democratic leaders have lost a bid for a court order to block the Trump administration from prohibiting mail-in voting for anyone who's not on a pre-approved list of citizens. A federal judge ruled that the Democrats' legal challenge to President Trump's executive order is premature because the restrictions haven't been put in place yet.

4:17The order would ban the Postal Service from sending mail-in ballots to anyone who's not on a government-approved list compiled by the Department of Homeland Security. Nathan, the Trump Justice Department has reportedly opened up a new investigation into one of the president's perceived political enemies. Bloomberg's John Tucker joins us with the latest. John, good morning. Good morning, Karen. The New York Times reporting the agency has opened a criminal probe into E. Jean Carroll, the 82-year-old former magazine writer who won a civil judgment against the president that he sexually abused and defamed her.

4:47Well, this probe reportedly accuses Carol of concealing financial support for her case from LinkedIn co-founder Reid Hoffman, who's a fierce Trump critic. The Justice Department has aggressively pursued investigations into President Trump's political targets, including the former FBI Director James Comey and New York Attorney General Letitia James. The acting Attorney General, Todd Blanche, reportedly has recused himself from this case because he represented the president in Carroll's lawsuit. In New York, I'm John Tucker, Bloomberg Radio. Okay, John, thank you. And President Trump's filed a new version of his $10 billion lawsuit against the Wall Street Journal.

5:23The president sued the paper over a story last year that said he sent a bawdy birthday note to Jeffrey Epstein in 2003 with a sketch of a naked woman and his signature in the middle. A federal judge dismissed the president's case last month, saying it came nowhere close to the legal standard for a public figure to claim defamation. The new lawsuit accuses the journal, its reporters, parent company Dow Jones and chairman emeritus Rupert Murdoch of publishing the story either knowing it was false or with disregard for the truth. Several tech stocks are on the move this morning, including shares of Snowflake.

5:55They are surging in the pre-market up nearly 35 percent. The software maker signed a six billion dollar multi-year agreement to use Amazon's cloud services and chips. Mandeep Singh is global head of tech research at Bloomberg Intelligence. For a company like Snowflake that has a lot of big enterprise customers to be able to use the Amazon distribution and the LLM integrations they have and integrate Snowflake's data for agentic functionality, that is how you make sure you don't get disintermediated. And I think that's why you see the positive reaction in terms of the stocks. Mandib Singh with Bloomberg Intelligence says Snowflake also gave a stronger than expected annual outlook.

6:37Shares of Nebius, they're up more than 11 % this morning, Nathan. The investment firm Situational Awareness has reported a 5.6 % stake in the cloud computing services provider. Before this morning's gains, shares of Nebius were already up almost 150 % this year. And Karen, shares of Dell are up more than 4.5%. half percent. The Pentagon says a Dell unit is one of nine point seven billion dollar contract to help the military handle its licenses for Microsoft software across the Defense Department and intelligence community. Dell reports earnings after the close of trading today. And shares of Salesforce, Nathan, they're down about one and a half percent.

7:15The company gave a revenue outlook that fell just short of analyst estimates. That's unnerving. Investors already concerned about the possibility that artificial intelligence will disrupt the software business. And Karen, we're Also hearing from JPMorgan Chase CEO Jamie Dimon, he says his bank will probably spend about a billion dollars more this year than executives expected just last month. Dimon says the increase is mostly driven by better performance. So, quote, it's a good extra billion. Dimon talked about his bank's performance at the Bernstein Strategic Decisions Conference. I personally think that right now we're over earning and I know that's a hard concept.

7:50But, you know, I think credit losses are the kind of normalizing, but they still still may be a little low. volumes are very high. So remember, you know, when you have high volumes and low credit losses and, you know, certain markets that we have today, we're probably over-earning, you know, but our competition is also very good. Jamie Dimon also says J.P. Morgan's on the lookout for acquisitions, but he cautions the bank can be patient with capital.

8:16Time 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 Democratic Republic of Congo is seeking access to an experimental antibody treatment targeting multiple Ebola strains as confirmed infections and deaths continue climbing in the country's east. According to the health ministry, there are reported 121 confirmed Ebola cases and 17 confirmed deaths in Congo. Suspected cases climbed to almost to 1 ,100 and suspected deaths reached 238 overall. Dr. Chikwe Ihekwazu is with the World Health Organization.

8:56He says they are quickly trying to get ahead of the spread by getting infected people into treatment and isolated. Ebola is always a game of cat and mouse because we have to be, we don't know where it will come from, we don't know when, so we have to kind of continuously seriously work with what we have in order to get to where we need to be. Ebola is spread through contact with body fluids of infected, sick or dead individuals. Recovery crews are continuing to search for nine people who went missing when a tank containing a highly corrosive industrial chemical ruptured at a paper mill in Washington state.

9:33Officials say that two people are known to have died in the accident and seven others have been injured. Washington State Governor Bob Ferguson says it has been emotional for the residents of Longview. You know, anytime you're talking about that scale of tragedy, that scope of tragedy, and that number of lives lost and injured, it's a pretty profound impact for a community like this. Governor Ferguson, officials say there is no chance of survival for the nine who are missing. New York lawmakers approved a revenue package that includes a new surcharge on pricey second homes in the city. The levy is expected to take effect July 1st.

10:07The goal is to generate$500 million to help close New York City's budget hole. 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. It's great. A hitter as Shohei Otani is this season. He's been an even better pitcher. At Dodger Stadium, he hit a monster leadoff home run. And on the mound, he worked six innings, gave up a run, but no hits. Lowered his ERA to 0.82. The Dodgers beat the Rockies 4-1. Carolina Hurricanes are now 11-1 in the Stanley Cup playoffs.

10:45They scored three goals in a span of less than three minutes. Scored an empty netter and won 4-0 at Montreal. The Hurricanes lead the series three games to one. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Is passive investing costing you more than you think? Active ETFs aim to beat the benchmark, while passive ETFs just settle for them. Embrace an active strategy that helps you build stronger portfolios. Invest with a global leader in active fixed income ETFs with JPMorgan Asset Management. Visit jpmorgan.com slash get active to learn more.

11:22JPMorgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. This communication is issued by JPMorgan Distribution Services Incorporated, member of FINRA. So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions. Not noise, proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business.

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12:58involves risk of loss. See complete disclosures at public.com slash disclosures. Coast 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. The war with Iran is now at the three-month mark, and once again, the U.S. is going after Iranian targets near the Strait of Hormuz, even as President Trump says Tehran is desperate to make a deal. They're negotiating on fumes, but we'll see what happens. Maybe we have to go back and finish it. Maybe we don't. That was President Trump at a White House cabinet meeting heard live on Bloomberg Radio.

13:38Joining us now is Bloomberg Middle East correspondent and Bloomberg Horizons anchor Jumana Bersechi. Jumana, good morning. Are the latest strikes the U.S. finishing it? Good morning. Yeah. Well, look, it's another test of the ceasefire. The second time this week that we see an incident across the Strait of Hormuz. But the U.S. saying that they acted in a defensive capacity. They shot down four drones that were being directed at a U.S. commercial vessel. They also went on to target a drone launching site in Iran as well, close to the port of Bandar Abbas, which is very close to the Strait of Hormuz.

14:12In return, Iran saying that they would strike back at a U.S. military base. And around the same time, Kuwait reported that their air defense system had been triggered. And so perhaps you could infer that the Iranian response did come through on that base. There's been no confirmation of that matter. But the point is here that the U.S. did say they were acting in defensive capacity, that the ceasefire is still being upheld. And we truly are not seeing any further signs from both sides that they want to escalate this further or actually resume full-scale military hostilities. And in fact, yesterday, even IRGC, a spokesperson, was saying that the likelihood of returning back to full all out war was low, but that they were ready for it if it does happen.

14:57Well, where does this leave things then when it comes to the negotiations with this sort of tit for tat happening near the Strait of Hormuz? Is the Strait the focal point at this point? Well, I think the Strait and clearing up the Strait is top of mind, especially for President Trump. He made lots of comments about it yesterday. you just played a little bit of a clip you're saying it's international waters, the straits going to be open to everybody, the US will watch over it and this is I think a response also to some of the language that's coming through from Iranian media suggesting that Iran once again are insisting that they have a right to ownership, of a right to controlling the straits and establishing a new protocol in the future even a joint system with Oman which of course the president denied and rebuked quite quite aggressively yesterday.

15:47He even threatened Oman. But that is one of the issues that they are going to be discussing, continue to discuss around the framework for progressing on the negotiations. And the first part of the deal, as we spoke about, would be the lifting of the blockades around the Strait of Hormuz, an extension of that ceasefire, and then a reopening up of the nuclear file. But how to do it in a manner whereby the U.S. aren't offering too many concessions to Iran up front in the form of lifting of some of those sanctions and unfreezing assets. So that's the big question mark now. So what is the bind that the president's in right now with Iran continuing to insist on financial support and pressure in Washington for the president not to make a bad deal?

16:36We have about a minute left. Yeah, I mean, that's the thing. And, you know, they used to say in Brexit around the time of Brexit. No deal is better than a bad deal. And I think in this situation, it is obvious that the president does actually want to go down the path of a deal. There were many opportunities in the past week where he could have gone down the military route. He hasn't done that. He does say that and describe the Iranians as being keen to make a deal. And certainly there's been a big push diplomatically. Qatar are emerging now as a key mediator. The focus has shifted away from Pakistan to Qatar.

17:09They're working very hard. I think all Gulf Arab states have also changed their tune as well. So there is going to be a big push. But again, as we've been speaking about, in all likelihoods, we will probably get a framework for an eventual peace deal, not a fully-fledged, comprehensive peace deal that is going to be announced on day one. 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.

17:44Wall 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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