US, Iran Halt Attacks; Supreme Court to Rule on Trump Cases

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1:47Make more of what's yours. Accounts subject to credit approval. Restrictions and limitations apply. Cards are issued by JPMorgan Chase Bank N.A., member FDIC. 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, we begin with the latest from the Middle East. The U.S. and Iran have agreed to stop attacking each other before talks resumed this week over the Strait of Hormuz and other issues. The latest strikes began Thursday when Iran hit a container ship in the strait that led to back and forth attacks that ended last night with Kuwait and Bahrain intercepting drones and missiles from Iran's Islamic Revolutionary Guard Corps.

2:33U.S. Ambassador to the United Nations Mike Waltz says the U.S. will continue to respond militarily if necessary. Last few nights where we'll continue to militarily if needed take down their infrastructure that they're trying to use to illegally control an international waterway. UN Ambassador Mike Waltz appeared on Fox News Sunday, heard every Sunday on Bloomberg Radio. Bloomberg's Europe, Middle East and Africa news director Will Kennedy says all this has put the 60-day ceasefire to the test. It is fragile and clearly what happened over the last few days will be a worry to everyone and to people trying to get oil and other goods in and out of the Strait of Hormuz.

3:11I think, though, that both sides probably want an opportunity for the talks to continue and to build on what was agreed in their memorandum of understanding. So it is a truce, but extremely fragile one, I think. Bloomberg's Will Kennedy reports both sides continue to tussle over whether Iran will be able to impose tolls or other costs for ships to move through the strait. Talks on that and other technical issues are expected to resume this week in Doha, Qatar. Well, Nathan, Russia expects U.S. negotiators Steve Witkoff and Jared Kushner to travel to Moscow to continue talks on ending the war in Ukraine once Washington is no longer preoccupied with the conflict with Iran.

3:48In an interview with state television, Russian President Vladimir Putin said Moscow received new proposals to limit fighting in Ukraine, but he rejected them. Back in this country, Karen, gasoline prices continue to fall, and Bloomberg's John Tucker's keeping an eye on that. Good morning, John. Good morning, Nathan. The latest national survey from AAA shows the average price for unleaded has now fallen to$3.86 a gallon. represents just over a 12 % decline over the last month. The average price a year ago, you'll recall this, stood at$3.19. Now, the decline comes on hopes of some sort of lasting ceasefire with Iran.

4:27Well, Bloomberg intelligence analysts caution that oil markets may be pricing too smooth a transition from the Gulf War. They point out that intermittent security incidents and cautious shipowner behavior could keep the path back to normal slower than the prices imply, especially with strategic inventories at a 43-year low. In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. Well, back in Washington, House Speaker Mike Johnson says he'll send the bipartisan housing bill that passed Congress last week to President Trump to sign today. The housing bill really is a Republican priority because it will lower housing costs.

5:05We made a lot of promises to the voters, and we're fulfilling those every single day of this Congress. And this is a big part of that because it will increase the availability, the access to more housing, bring down costs, cut regulations, do the things that we know are very important for that market. House Speaker Mike Johnson appeared on Fox's Sunday Morning Futures and President Trump abruptly canceled a signing ceremony for the housing bill last week to pressure the Senate to pass a nationwide voter ID law that he's been pushing for months. Well, Karen, the Supreme Court is expected to issue its final decisions of its term this week, and we get more on that from Bloomberg's Amy Morris in Washington.

5:43Justices are preparing to release opinions on some of the biggest issues of the term. Those include President Trump's push to restrict birthright citizenship and expand the president's power to fire board members at independent agencies, including whether the president can oust Federal Reserve Governor Lisa Cook. Now, the Supreme Court heard oral arguments earlier this year in Cook's case and appeared skeptical of the administration's removal attempt. The justices are weighing whether the for-cause removal provision permits a president to bypass due process. In Washington, Amy Morris, Bloomberg Radio.

6:16All right, Amy, thank you. Let's turn to the markets now where futures are higher as we kick off the holiday shortened trading week. Right now, S &P futures are up 7 tenths of a percent. Dow futures up a third of a percent. And NASDAQ futures up 1%. Last week, the S &P 500 closed below its 50-day moving average for the first time since April. On Thursday, we get the monthly jobs report for the month of June. And ahead of that report, Karen, the Federal Reserve's new chairman grabs the spotlight in Europe. Bloomberg's Monica Ricks reports. Fed Chair Kevin Warsh will make his debut on the global stage this week at the European Central Bank's annual symposium in Portugal, along with three other veterans of the 2008 global financial crisis.

6:56Questions over financial stability, including links to the artificial intelligence boom, will likely loom large at this event. as well as any hints on interest rates and the policy panel's chemistry. Last year, former Fed chair Jerome Powell got a standing ovation and tons of praise for standing firm against attacks from President Trump. Monica Ricks, Bloomberg Radio. All right, Monica, thank you. And company news, Verizon and the UK's BT Group have agreed to create a joint venture for their international businesses that will have a combined yearly revenue of about$4 billion. Verizon agreed to an equalization payment of$625 million to BT, and the companies will hold equal voting rights in the venture.

7:38In Asia, Karen, South Korea is orchestrating investments of at least$880 billion from companies, including Samsung Electronics and SK Hynex, into chips and data centers. The scale of Korean tech spending underscores the government's urgent desire to maintain its lead in memory chips that are crucial to AI. Nathan, U.S. listed Bitcoin exchange-traded funds are on pace for their worst month of withdrawal since launching two years ago. Investors have pulled more than$4 billion from the 13 funds in June. Bitcoin is down more than 18 % this month. This morning, it is up about a third of a percent. It's at about$59 ,800.

8:17Not so sweet news here, Karen. One of the world's biggest chocolate makers is headed for its worst quarter in 17 years. Lint, known for its golden foil-wrapped Easter bunnies, has seen its sales volumes erode after raising prices last year by nearly 20 % on the back of surging cocoa prices. The chocolatier is set for its worst quarterly showing since 2009 when it grappled with the fallout from the global financial crisis.

8:44Time 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 Northeast, including New York, is in for some high temperatures and humidity starting Tuesday and lasting through Friday. With more, here's Bloomberg meteorologist Craig Allen. An extreme heat watch has been posted. Temperatures will likely run 15 to 20 degrees above normal, with highs in the upper 90s to low 100s. And the humidity will be stifling, too. So from D.C. up through Philly to New York City and up to Boston, the heat index, a measure of what the combination of heat and humidity will make it feel like, Expect some cities and towns to approach 110 degrees or higher.

9:26And worse yet, urban areas may not cool down below 80 at night. And don't be surprised if late-day thunderstorms pop up, but they will offer little relief. Bloomberg meteorologist Craig Allen. Rescue teams race against the clock to pull survivors from the rubble in Venezuela days after two powerful earthquakes shook the northern state of La Guaira. The government reported 1 ,450 dead from Wednesday's quakes. Thousands have been reported missing. New York City Mayor Zoran Mamdani said last Tuesday's state primaries show that American voters are looking for a new kind of politics. Mamdani-backed left-wing candidates running on Democratic Socialist platforms defeated incumbents in the Democratic primary results.

10:10Mamdani says he believes a Democratic Socialist can get elected anywhere across this country for any position. We need a party that's able to recognize the strengths of this economy and understand that it hasn't reached enough people. Mayor Mamdani spoke on ABC's This Week, which can be heard Sundays on Bloomberg. 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 Red Sox and Yankees began a four-game series in Boston with the Sox only 12-25 all year at home.

10:47They had lost 11 of the last 16 games, hadn't had a four-game win streak all season. They swept the Yankees in the four-game series. They won a wild game last night, 5-4 in 10-ings. At the Travelers Golf near Hartford, Scotty Scheffler and Victor Hovland finished 21 under par. It was too dark to finish because they had a rain delay. They'll be back this morning for the playoff. Canada with a 1-0 win over South Africa at the World Cup. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. So there's a lot of noise about AI, but time's too tight for more promises.

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13:15Coast 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. Both the U.S. and Iran say they plan to start talking again after several days of attacks and counterattacks centered on the Strait of Hormuz. Ben Rhodes served as Deputy National Security Advisor in the Obama administration. He says diplomacy still has a chance. It's not going to be easy, but unless and until the Trump administration and the president himself can kind of stay off truth social here, I think you might have these kinds of flare-ups.

13:50Former Deputy National Security Advisor Ben Rhodes, he was a guest on Bloomberg this weekend, heard each Saturday and Sunday morning on Bloomberg Radio. Joining us this morning is Mark Champion, who covers the Middle East for Bloomberg Opinion. Mark, it's great to speak with you this morning. How seriously was the ceasefire tested over the last few days? And can diplomacy get back on track? Good morning. Good morning. Yes, it was a serious test, a predictable one. Essentially, what you have in the Memorandum of Understanding is a document that was vague enough that both sides could walk away from it saying, well, that enables us to use the document in order to try and get the goals that we would also try to get through the war.

14:36And so it makes it inherently unstable. And, you know, you have various places where that's going to show. Hormuz, the Strait of Hormuz is, you know, perhaps the most prominent. And, you know, clearly the Iranians, they looked at what the Americans were doing. They'd opened a channel off the coast of Oman and, you know, shipping was going through. The Iranians are insisting that they are going to exit this war in full control of the strait, able to charge fees from the strait, which, you know, some of their officials have been talking about as much as$40 billion a year in revenue. So those are their goals.

15:25And they were affronted, you know, by the US sending ships through without, you know, registering with the new Iranian authority. And so this is where you had the kind of confrontation come up. The Iranians said, you know, if you continue, we will blow things up. And they did. So we're kind of back at talks, but those things have not been resolved. You have similar things going on in Lebanon. The deal covered Lebanon, but both sides have completely different ideas of how that's supposed to end up. So we do still have very different ideas, it seems, about how the Strait of Hormuz is going to end up as well, with the U.S.

16:10pushing back at this idea of Iran charging tolls or insurance or whatever you want to call it through the Strait of Hormuz. Is 60 days enough to resolve that issue above and beyond the nuclear issue for Iran? It's unlikely. I mean, it's almost impossible to imagine a full, meaningful nuclear deal being struck within 60 days. That's an extraordinarily technical issue. and the same really goes for Hormuz. In the end, there's going to have to be something worked out, something like, you know, you have the Treaty of Montreux, which covers the Dardanelles Straits, the Bosphorus, and that allows very limited, described fees to be charged by Turkey in order to, you know, service for piloting and for environmental costs and so on.

17:06But there you're talking about, at the moment, around$250 million a year being taken from around 50 ,000 ships going back and forth through these straits. The Iranians obviously have a very different idea. Also, they share the strait with Oman. So it's going to be that much more complicated. And you might want an international body being involved, like with the Straits of Malacca. So a lot of things to work through and very, very different ideas of what the purpose is. So in our last 30 seconds, Mark, what kind of progress, if any, can we expect from the talks that we're expecting to resume in Doha this week?

17:50Well, progress is not war and not returning to war. and then I think you'll just, there'll be a very kind of long, slow stop-start process with plenty of interruptions like the ones that we've just seen this weekend. 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. 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.

18:35Plus, 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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