US-Iran Exchange Strikes; Nepal Races to Find Missing

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1:41Bloomberg Audio Studios. Podcasts, radio, news. Good morning, I'm Karen Moscow. And I'm John Tucker. Here are the stories we're following today. Well, John, we begin with new developments in the Middle East. The U.S. and Iran have exchanged strikes for the first time in about a month. American forces hit Iranian rocket launchers, and the Islamic Republic responded by firing missiles toward Jordan. We get the latest with Bloomberg's Abir Abu Omar in Dubai. The situation is still very fragile. You're talking about a ceasefire deal that is no longer in place. You're talking about wider negotiations that are no longer happening.

2:20And you're really talking about movement in the Strait of Vermouth that has picked up, but is nowhere near where it was pre-war levels. And so the situation is, to use the same word twice, still very fragile and could pick up anytime soon. And the frictions that you saw in the early hours of this morning certainly do provide the case for how things could get appended at any moment. But for the time being, these are not skirmishes that we hadn't seen over the past couple of months or so. We'd seen Iran retaliating by striking countries in the region like Jordan, like Kuwait, like Bahrain. And that risk has never really left the room.

2:56That risk had always been present. And now we're seeing it ticking up again. And that's Bloomberg Zabir Abu Omar, who says the U.S. attack was the first military action against Iran since late July. And Karen, the flare-up in fighting boosting oil prices this morning. Right now, Brandt, the international benchmark, up$3.08, 91.18 a barrel. WTI up$2.89 at$86.29 a barrel. And oil analyst Carly Garner of DeCarly says the impact of prices does seem limited. The same headlines earlier in the war would have probably been good for$10,$15, not$2. So you can see that the market's being fatigued. We're kind of being desensitized to the headlines.

3:39And I think that's really what's going on. And I'll also say I think this knee-jerk reaction higher will probably trigger some buyer's remorse. DeCarly oil analyst Carly Garner away from the Middle East. Washington moving to take direct control of the more than 65 million barrels of Venezuela's oil reserves. President Trump says the crude would be used to refill America's depleted emergency reserve. Now, John, let's get to the latest on the trade dispute between the U.S. and Canada. Ontario Premier Doug Ford is ridiculing President Trump's order changing the name of Lake Ontario to Lake America.

4:13Ford spoke on ABC's This Week, which can be heard Sundays on Bloomberg Radio. It was like something out of Saturday Night Live when he signed documents saying change to Lake America. No one's going to call it Lake of America. It's been Lake Ontario for hundreds of years. It's going to continue being Lake Ontario. And it's just so, so disappointing. Ontario Premier Doug Ford expressed optimism that Canada and the U.S. would eventually overcome their differences on trade and tariffs. Well, Google Maps is following President Trump's lead and did make a change to Lake Ontario. Bloomberg's Monica Ricks with that story.

4:51Google Maps relabeled Lake Ontario as Lake America for users in the U.S. after President Trump said he'd rename the lake amid a trade spat with Canada. But Alphabet says users in Canada will still see Lake Ontario and the rest of the world will see both. The company said in a statement the updates follow its longstanding policy for bodies of water, which it says vary from country to country. MapQuest, however, has refused to change the name, and so far, it's still Lake Ontario on Apple Maps, though Apple did change the Gulf of Mexico to Gulf of America after Trump ordered that change last year.

5:26Monica Ricks, Bloomberg Radio. All right, Monica, thank you. Now to the latest on a tragic story overseas, with rescue workers still searching for the roughly 4 ,800 people missing in Nepal and China. More than 900 people have died after a glacial collapse unleashed floods and debris across the border region. Representative Raja Krishnamoorthy, a Democrat from Illinois, tells Bloomberg this weekend that the U.S. government needs to send more aid to the region. This is just a calamity of enormous magnitude. My office directly has been contacted by numerous families now who've been affected because they were American citizens on pilgrimage in that particular region at the time of this glacial collapse.

6:12I reached out to the State Department and said we have to do more to assist in these search and rescue efforts. Representative Raja Krishnamoorthy speaking with Bloomberg this weekend. More than 10 ,000 people have been rescued with almost 20 ,000 security personnel mobilized. Nepal requested help opening tunnels where people were trapped, heavy-duty drones to deliver supplies to stranded areas, and forensic assistance to identify the dead. And Karen, let's turn to the economy where the big event comes on Friday. That's when we get the jobs report for the month of August. Meanwhile, investors still reacting to Fed Chair Kevin Warsh's Jackson Hole speech on Friday.

6:51Warsh reiterated his commitment to bringing down the rate of inflation. Price stability is not self-executing, nor is inflation necessarily mean reverting. It's the Fed's job to deliver stable prices, no excuses. But some bond investors voicing skepticism that the Fed chair is poised to raise interest rates, TD Security said on Friday, its base case is for the Fed to stay on hold. Christoph Bauscher at ABN Amro says Warsh's comments, weren't enough to convince him that officials will follow through. And after surging the most and more than two months on Friday, the policy-sensitive two-year yield this morning, it is down two basis points.

7:32And John, futures, they're lower this morning as we begin a new trading week. Earnings will be in focus, especially from tech companies. And we get details with Bloomberg's Charlie Pellett. As earnings season winds down, S &P 500 firms have managed to grow their earnings by nearly 32 % year-over-year, according to Bloomberg Intelligence data. Kate Moore is chief investment officer for CitiWealth. Look at this quarter-after-quarter of double-digit, blockbuster earnings growth, incredibly high revenues, raising guidance. I mean, that kind of momentum is not going to be derailed by a couple 25-basis-point hikes.

8:07This week, we'll be hearing from Dell, Sienna, Hewlett-Packard Enterprise, MongoDB, Palo Alto Networks, and Snowflake. In New York, Charlie Pellett, Bloomberg Radio. Thanks, Charlie. Well, SpaceX and NASA, they're delaying the launch of a planned mission to the International Space Station to fix an oxidizer leak in the Dragon spacecraft's propulsion system. NASA and SpaceX are doing additional testing. They didn't announce a new target launch date for the Crew-13 mission, which will be staffed by American, Canadian, and Russian astronauts. Well, SpaceX over the weekend did launch a$4.3 billion NASA telescope designed to study dark energy and dark matter.

8:47Again, it took off successfully yesterday. John, in the world of sports, LiveGolf could file for bankruptcy protection as early as next week. The Financial Times is reporting the Golf League is trying to find funding for a slimmed-down version slated for 2027. The paper says the league has sent settlement offers to the current Live players who are owed millions in guaranteed payouts past 2026. The Saudi Sovereign Wealth Fund helped launch the league in 2022.

9:16All right, thanks, Karen. And that brings us to 508 on Wall Street. Time for a look at some of the other stories making news in New York and around the world. And good morning, Michael Barr. Good morning, John. One person has died and about 15 people are missing or unaccounted for after a major flash flood at the Grand Canyon. The National Park Service said that the body of a 46-year-old man was recovered near Crystal Rapids along the Colorado River. The flooding forced the evacuation of dozens of people and knocked out the Soul Water Pipeline serving tourists and residents. This woman was camping along with her husband when they had to scrimp.

9:51Once we got to the bridge, that's when this 15-foot wall of water came through the campground and Phantom Ranch and just wiped out all the bridges. The Park Service says the flooding also swept large boulders and metal structures into the Colorado River. More rain is forecast for today. Jurors will resume deliberations this morning in the Lindsay Clancy murder trial. Jurors are trying to decide whether the Massachusetts woman should be held criminally responsible for the deaths of her three young children. Defense lawyers for Clancy say she was suffering from postpartum psychosis. Prosecutors say she planned the strangulations and knew right from wrong.

10:32An Ohio woman was arrested in Tennessee after going on the run when she was facing charges after posing as a registered nurse and physical therapist at a number of facilities. Authorities in Erie County say Amanda Maynard Murphy worked at two facilities in Perkins Township as far back as 2023. Perkins Township Police Detective Joseph Rituno says it's kind of scary when you realize how much access Murphy had while working at these facilities. As an RN being around medications, controlled substances, and then a physical therapist being around patients and patient records. Murphy fled in January of 2025 when she was indicted.

11:13She was found in Tennessee over the weekend. Tomorrow is primary day in Massachusetts. Among the gubernatorial race, eyes are also on a Democratic U.S. Senate primary. Incumbent Ed Markey, who is 80, is up against Representative Seth Moulton, who is 47. Global News, 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg. Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. Opening night at the U.S. Open provided a massive upset. Novak Djokovic, his 20th U.S. Open, is already over. He had never before lost to the U.S.

11:51Open first round. He had not lost the first round of any Grand Slam since 2006 in Australia. He blew a two set to one lead. He battled physical problems and was upset by Mariano Navoni, a 25-year-old from Argentina. Scotty Scheffler won the FedEx Cup for the second time in three years. He won$10 million. 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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13:24The investment is aimed at accelerating the commercialization of clean aviation fuel. The recipient is Boston-based Lydian, which is developing lower-carbon jet fuel made from hydrogen and carbon dioxide, and is one of a growing number of companies developing next-generation clean jet fuel technology. Lydian says it can reduce capital expenses by more than 50 percent compared with competing technologies. Lowering those costs is seen as crucial to making sustainable aviation fuel, or SAF, commercially viable, as it remains far more expensive than conventional jet fuel. Today, clean fuels represent a tiny fraction of the overall market.

14:04That's the Bloomberg Tech Minute, brought to you by ChachiPT. Put ChachiPT 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. You already know how AI is changing how everyday work gets done, how much ground you can cover, and how fast a team can scale. To stay ahead, you need the tools that give you a competitive advantage built for this new era. Welcome to Agentic Revenue. Adio is the CRM for this world. It meets you where you work, compounds every customer signal into context, then axon it across your pipeline to let you move it on match speed and scale With agents and automations for every job and revenue, Adio orchestrates your work around the clock.

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15:25Coast 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. And the U.S. and Iran exchange strikes for the first time in about a month. American forces hitting Iranian rocket launchers and the Islamic Republic responding by firing missiles toward Jordan. Bloomberg's Wendy Benjaminson says this comes as the U.S. focuses on squeezing Iran economically. So far, one bank has been threatened with sanctions and another bank may be sanctioned this coming week. So we don't really haven't really seen the full force of this economic squeeze the U.S.

16:06is planning, but that's their focus now. We want to get the latest on the fighting in the Middle East with Bloomberg Middle East breaking news editor Patrick Sykes. Patrick, good morning. Well, we've been on the quieter side for about a month. Let's talk about what sparked this latest round of attacks in the Middle East. That's right. Yeah. So the U.S. says that Iran was preparing to fire these rockets in order to place mines around the Strait of Hormuz. I think the reason that matters is because There's been something of a war of words between both sides over the past couple of weeks within the framework of this greater kind of debate over who actually controls the strait, the extent to which it's open.

16:46And the U.S. saying that it had removed all the mines, or Trump specifically saying that, and Iran saying no, that only it knew where all the mines are. So the U.S., I think, seizing on what it says was a deployment to add mines into the strait as a pretext for a return to the military option. Can we say that this means attempts to go after Iran's economy are not working, or is this more about just the importance of trying to keep traffic moving through the strait? I think the latter, yeah. We can expect the U.S. to continue trying to increase the pressure on the economic side. As the previous speaker said in that intro, we've been told to expect further sanctions measures against banks.

17:29And that strategy in general is, you know, something of an incremental one where the U.S. will, I think, continue to designate individual entities, companies, banks, potentially call out countries that it feels are not falling in line with the U.S. vision of cutting off Iranian trade. In the meantime, the U.S. really needs to do everything it can to reduce Iran's leverage over Hormuz. That means keeping, albeit limited relative to the pre-war status quo, keeping traffic moving to the extent that it can. And that in turn means restricting Iran's ability to relay mines that would impede that traffic.

18:12So will this be an isolated incident then, or can we expect the attacks to pick up once again? I would expect more of this. I think the US would like to see it be an isolated thing where they strike every once in a while in their view to sort of impede those individual attempts to restrict traffic. But of course, there's two parties in this war and we can expect Iran to retaliate. The way in which it's done so so far appears to have been targeting US bases in Jordan and the UAE. And with every attack and counterattack, you have the risk of further escalation. You have the risk that Gulf countries like the UAE might take a more aggressive stance themselves.

18:56And that just adds to the risk of escalation. But I think for the U.S. itself, it would like to see this as a limited strike. So where are we when it comes to diplomacy? Because you did mention there are two parties in this. But Friday, we heard about some creative discussions between Iran and Qatar. So any idea what that means? Where are they headed when they're trying to find a solution? Yeah, last week was really busy in terms of the diplomatic traffic. You know, in Tehran, hosted within about three days, delegations from Pakistan, from Qatar and Oman. Qatar in particular is interesting because, A, has been a mediator in the talks between Iran and the U.S.

19:38in earlier stages of this particular conflict. But it's also specifically important in terms of the unblocking of Iran's frozen funds, that being a key demand of the Iranians as part of any peace talks. We didn't get, as a result, any clarity on what exactly they had or hadn't agreed in terms of what would happen to those funds. But the readout from the Iranians was pretty positive. this mention of creative solutions, albeit, you know, vague as it was. And that in combination with this deal announced earlier in the week with the Armanis, where they were potentially agreeing on the new route that would go through the strait, all gave a kind of sense, I think, of progress.

20:30But, you know, moments like this, days like this, where we're seeing a return to military strikes are not going to help matters. And in all this, have we been hearing about U.S. representatives coming to the table as well? Are they in on these discussions at all? The U.S., I mean, they're not in the room when, you know, Iran is talking to the Pakistanis, but it's a mediation, right? So I think we can expect that the role the Pakistanis and the Qataris are playing, they are, you know, visiting the Iranians, often in person because of the sensitivity of the talks. They're then going back and then relaying certainly to Washington kind of what, if anything, they feel is the room to be done on a deal.

21:15Now, when it comes to the Strait of Hormuz, can we just discuss what the situation is like then right now? We are getting word that some crude is still getting through. We're also getting word that some are also paying tolls to transit. On the crude side, I think there was a report from Wall Street Bank last week saying we're back up to about two thirds of pre-war traffic volume. That is a vast improvement from where we started at the beginning of the conflict back in early March. The squeeze is more on the refined product side and also the LNG side. Qatar, of course, being a major LNG exporter.

21:54So, you know, the fact that traffic is happening or the fact that oil, i.e. crude oil, is moving is positive for the markets, but it's positive for a kind of specific subset of the markets. And there are other markets within that oil ecosystem that are still struggling. And for the buyers who rely on those products, that means that they're still wrestling with comparatively limited supply and comparatively higher prices until there is a kind of more lasting security situation in the region. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

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23:12I'm Karen Moscow. I'm John Tucker. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak. 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. So healthcare is connected, not complicated. What's that look like? Cheaper prescriptions that are easier to get and care that looks at the whole person. How you need it. Optum is helping make healthcare work as one for everyone.

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