US Tells Iran ‘Clock Is Ticking’; Aaron Rai Wins PGA Championship

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1:20Do that with Acrobat. Need to level up your presentation design? Do that with Acrobat. You have 30-plus documents that need to be simplified into a proposal. Do that. Do that. Do that with Acrobat. Learn more at adobe.com slash do that with Acrobat. 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 on efforts to end the war with Iran. Both the U.S. and Iran remain far apart on a deal to resolve their conflict and reopen the Strait of Hormuz. And now President Trump is warning the clock is ticking.

2:05He wrote that in a social media post telling Iran, quote, they better get moving fast or there won't be anything left of them. We get more from Bloomberg Middle East correspondent Jumana Bersetchi. It's a bit of a difference in sentiment from where we were a week ago. And we thought maybe there'd be a diplomatic breakthrough after the Trump-Xi summit that China would somehow push diplomatically to get through to the Iranian side and get them to make some concessions. That hasn't been the case. And what we've woken up to this morning is more true social threats from President Trump saying that the clock is ticking.

2:37He wants the Iranian side to sign up to the peace deal. Iranian media on their part saying that what the U.S. are asking for is too maximalist, maximalists, that the U.S. have not made enough concessions, and what they're demanding are things that Iran simply cannot concede to. Bloomberg's Jumana Bersetje reporting. Meantime, a drone attack over the weekend sparked a fire at a nuclear plant in the United Arab Emirates. The UAE says it intercepted two other drones launched from west of the country. Nathan, Treasury Secretary Scott Besant is calling on the G7 nations and others to increase sanctions on Iran.

3:09Besant is in Paris for a meeting of finance ministers and central bank governors from the group of seven nations. He's wrapping up an international trip that saw stops in Japan, South Korea, and China. And we're getting more details, Karen, about what came out of President Trump's Beijing summit with Chinese leader Xi Jinping. The White House says China agreed to buy at least$17 billion of agricultural goods per year through 2028 and to set up boards of trade and investment with the U.S. U.S. Trade Representative Jamison Greer discussed the agreements on CBS's Face the Nation. Board of Investment is really about discussing key issues in U.S.-China investment policy.

3:46It's not really an investment program, but it's to try to almost be like a firefighter and put out issues when they arise between the two countries. Again, U.S. Trade Rep Jameson Greer, Bloomberg's Stephen Engel reports from Beijing that the details on China's ag purchases still have to be worked out. We do know that China has approved the licensing process for beef to be allowed back into China after a 14-month pause. We're hearing And corn, possibly another big crop is sorghum. Cotton is another one. So we'll have to see where that 17 billion dollars comes. Still, Bloomberg's Stephen Engel reports the commitment brings China's ag purchases back to where they were in the trade deal during President Trump's first term.

4:29He spoke on Bloomberg this week and heard 7 a.m. Saturdays and Sundays on Bloomberg Radio, Bloomberg Television and the Bloomberg Business app. Well, Nathan, back here at home, thousands of New Yorkers will have to find another way to get to work this morning. and that's because there's a strike at the nation's largest commuter railroad. We get the latest with Bloomberg's John Tucker in New York. Where do we want? It's the first weekday of the strike that is up to 300 ,000 commuters looking for another way to get to work. And it's not just the striking rail workers who are making their voices heard.

5:00I pay$394 a month. It better be a seamless transaction for me to receive a refund. The LIRR operates 24-7, serves 126 stations across more than 300 route miles on 700 miles of track. Governor Kathy Hochul. The railroad is the lifeblood of Long Island. Without it, life as we know it is simply not possible. The MTA, which runs New York City subways, buses and commuter rail lines, is advising people to work from home if possible. 275 free shuttle buses across six Long Island locations are shuttling essential workers to subway stations in Queens. If you have deeper pockets, Blade is offering$95 one-way helicopter rides.

5:45For those driving, calls to suspend New York's congestion pricing, they went nowhere. With the union seeking a 5 % raise this year, the MTA on Friday offered nearly 4.5%. Negotiations between the unions and the MTA restarted yesterday. In New York, I'm John Tucker, Bloomberg Radio. John, thanks. Let's turn to politics now. Attention turns to tomorrow's Kentucky primary. That's after Senator Bill Cassidy was decisively defeated in the Republican primary in Louisiana over the weekend. President Trump campaigned against Cassidy after he voted to convict the president during an impeachment trial over the attack on the Capitol.

6:21Now the president's focused on getting Congressman Thomas Massey booted in Kentucky. Massey spoke on ABCs this week. I think that's going to help my fundraising at thomasmassey.com. Every time he tweets about me, it's good for, you know, some money coming in because people don't like that. Kentucky Republican Thomas Massey, again on ABC's This Week, heard Sundays on Bloomberg Radio. Massey has angered the president by voting against his signature tax legislation, pushing for the release of the Jeffrey Epstein files, and opposing the president's decision to go to war with Iran. Nathan, tomorrow also brings us primary elections in Alabama, Idaho, Oregon, Pennsylvania, and Georgia.

7:01Georgia's primary will provide an early read on key dynamics shaping the 2026 cycle with both the governor's race and a messy Republican Senate contest in focus. And there to cover it all, Bloomberg Balance of Power. Joe Matthew and Kaylee Lyons are live in Atlanta breaking down the races. You can catch them at noon Wall Street time on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business app. Turning to sports now, Karen, because history has been made at the PGA Championship. And Bloomberg's John Stash Hour is here to tell us more. John. Nathan and England, they've been waiting since 1919 for a PGA champion.

7:38An unlikely winner sealed his victory on the next to last hole. Where Aaron Rye has just hit a beautiful birdie. But on 17, he drains it. From 50 feet, Aaron Rye is unstoppable at Aronimek. He is nine under par. That's been one call. It was heard here on Bloomberg Radio 30. One-year-old Rye had only won one tournament before, had never finished in the top 15 of a major. He pulled away on the back nine, won by three shots. We'll hear from Aaron Rye coming up in sports. John Stashauer, Bloomberg Radio. All right, John, thank you. Let's turn to the markets now, and futures are lower this morning.

8:12Bonds are off their worst levels of the morning as well, and we're checking U.S. Treasuries right now with a 10-year yield, 4.59 percent, yield on the two-year 4.07 percent, and the 30-year yield 5.12 percent. In Asia, Japan's 30-year yields surged to the highest level since 1999. Mark Cranfield covers the markets for Bloomberg. When you have the long end of bond markets behaving badly, it really is one of the worst scenarios you can get across asset markets. Central banks control the short end pretty well. They adjust interest rate policy, and that has a very big effect on where short-term yields go.

8:48They have very little control over the long end of bond markets, particularly when bond supply is so huge around the world. Fiscal deficits are increasing in most of them. There doesn't seem to be a great deal of people wanting to get on and reduce those deficits at all. In fact, it's going, the Iran war has made it worse. It's going the other way. Investors can see that. Bloomberg's Mark Cranfield says bond yields are rising not only on oil-driven inflation risks, but also due to fears that governments will ramp up borrowing to cushion rising living costs. As the route continues, Karen, veteran market strategist Ed Yardeny is warning that the Fed needs to catch up with the bond markets or risk losing control of borrowing costs.

9:27Yardeny says the central bank should remove its easing bias at next month's meeting, given that it is, in his words, no longer appropriate in the current market environment. Yardeny expects the Fed to hold rates unchanged at the June meeting and shift to a tightening policy stance.

9:45time 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 uganda postponed an annual religious holiday usually held on june 3rd following an outbreak of the ebola virus in neighboring democratic republic of congo uganda has confirmed two infections and one death from the outbreak about 350 suspected cases and 91 deaths have been reported in northeastern Congo. Dr. Jean Kaseya, Director General of Africa Centers for Disease Control and Prevention, says that Western countries need to make an investment in Africa in vaccines and therapeutics to fight Ebola.

10:25Western countries, they don't understand that when Africa is affected, they are also at risk because people are flying every day. And it means building strong system, supporting Africa, investing in Africa. Dr. Jean Kassea, the CDC, is escalating its response to the Ebola outbreak after the WHO labeled it a public health emergency. The cruise ship hit by a hantavirus outbreak is set to arrive in the Dutch port of Rotterdam later today. The ship has 25 crew members and two medical staff on board, none showing symptoms. Officials in Austin, Texas, say two teenagers are in custody and a third suspect has been arrested after at least 10 random shootings that left four people hurt over the weekend.

11:12At one point, authorities ordered residents of a large part of Southern Austin to shelter in place on Sunday while the investigation continued. Austin Mayor Kirk Watson says the shootings appeared to be random. Police Chief Lisa Davis says the shootings occurred Saturday and Sunday morning, including two outside fire stations. A motive? I don't know what a motive is. I don't know what motive would drive anybody to come and drive around senselessly in the city and multiple parts of the city shooting. Chief Davis says the suspects apparently were stealing vehicles as they moved about. Global News 24 hours a day and whenever you want it with Bloomberg News Now.

11:48I'm Michael Barr and this is Bloomberg Karen. All right Michael Barr thank you.

11:57Time now for the Bloomberg Sports Update. It's brought to you by Flushing Bank and here's John Stash Hour. John, good morning. Good morning, Karen. The PGA Championship had a very crowded leaderboard until the end when Aaron Rye pulled away. It started with his eagle on the ninth hole and then he shot 31 on the back nine, including a 68-foot putt on 17. Finished with a 65, never had a round over par. Nine under was three shots better than John Rahm in the 108th PGA. Rye's the first Englishman to win since the second PGA in 1919. There's a lot of incredible and historic English players over those 100 years who have gone on to achieve incredible things and had phenomenal careers.

12:38But to win this event and then to be a person that's the first one to have won it in such a long time from England is an amazing thing. At the start of the tournament, the odds on an Aaron Rye victory were as high as 290 to 1. A week after the Knicks locked up a spot in the Eastern Conference Finals, they finally know their opponent. The Cleveland Cavaliers. Knicks went 2-1 against them in the regular season. They went 0-3 versus Detroit. Two losses by over 30 points. With the Cavs, the Knicks get home court. But they'll play a Cleveland team that looked awfully good last night. Blowing out the Pistons in Game 7, 125-94.

13:16The third largest win ever by a road team in a Game 7. Knicks and Cavs start tomorrow at the Garden. The West Finals start tonight. San Antonio at Oklahoma City. OKC's Shea Gilgis-Alexander will be given his MVP trophy. At Citi Field, stunning finish to the Subway Series. The Yankees led 5-1. They led 6-3 with two outs in the bottom of the ninth. Tyrone Taylor, a game-time three-run homer off David Bednar. The Mets won 7-6 in 10-ings. It ends a brutal road trip for the Yankees. They went 2-7. They're now three games behind Tampa Bay. Red Sox lost in Atlanta 8-1. The Nationals beat the Orioles 7-3.

13:52John Stashe, Bloomberg Sports. Gary Newton. 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. J.P. Morgan Asset Management is the brand name for the asset management business of J.P. Morgan Chase & Co. and its affiliates worldwide. This communication is issued by J.P.

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15:22Coast 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 clock is ticking. That is the warning from President Trump to Iran on social media as both sides remain far apart on a deal to end their nearly three-month war. For the latest, we're joined by Bloomberg Middle East correspondent and Bloomberg Horizons anchor, Jumana Brasechi. Jumana, of course, we've heard threats from the president in the past. Is this time different? Good morning. Yeah, well, I suppose we'll find out in the coming days, but certainly a bit of a contrast with the sentiment we had towards the end of last week.

16:03Remember, people were optimistic, hopeful that there might be some form of a breakthrough after the Trump-She summit, that maybe China could exert some influence on Iran, but that does not appear to be the case. And if anything, the rhetoric has once again deteriorated overnight. That true social post that you mentioned, Trump saying that the clock is ticking. He wants to see Iran come to the table, sign a peace deal. Iran, for their part, over the weekend, Iranian state media saying that what the U.S. is demanding out of them is too maximalist and that they are not going to surrender or compromise.

16:35So we are back to a situation of impasse and not just on their respective negotiating positions, but of course, when it comes to the straits as well. Well, what do we know, Jumana, about the demands that Iran says are too maximalist? What are both sides holding out for at this point? Yeah, so, you know, it comes back to the same issues that we've been talking about for the better part of, honestly, all of this year. But one of Iran's media news agencies, this is Fars news agency, said that the U.S. had asked for five main conditions for a peace deal, including transferring the highly enriched uranium to the U.S., no war reparations and unfreezing less than a quarter of Iran's frozen assets.

17:19So this has just been cited by the Iranian media. It has not been conferred by the U.S., to be clear. But equally, that sort of tallies up with what we know the U.S. have been putting forward. And President Trump, a couple of times over the past week, has suggested that the Iranian response to their proposal has been, quote unquote, garbage, that he didn't make it through the first paragraph is what he says. And so once again, it comes back to which side is going to blink first, which side is going to make concessions. But President Trump has said over the course of this war that the main goal is to ensure that Iran doesn't go on to develop a nuclear weapon.

17:57The question is how they can ensure that that does not happen, what it means for the fate of that highly enriched stockpile, and what it means for all the centrifuges that Iran still have access to. On the meantime, we're hearing reports of drone attacks on a nuclear plant in the United Arab Emirates as well, putting the nuclear issue front and center there. I mean, what does that tell us about where the ceasefire stands right now? Yeah, remarkable and dangerous escalation. Thankfully, no radiation leaks detected. This per the IAEA, there was a drone attack on the UAE yesterday, Abu Dhabi. And this was targeted at a civilian nuclear power plant.

18:36It accounts for about 25 percent of the electricity generation within the UAE. It caused a fire, an electricity generator, but no injuries. And as I said, no radiological leak. But again, it's just another example of how Iran can cause disruption and potential damage at key infrastructure sites. And by the way, it wasn't just in the UAE. Saudi Arabia this morning also announcing that they had intercepted three drones that were being fired from Iraq, actually, not Iran. And so this raises the broader question as to who exactly is firing these projectiles towards the UAE and Saudi Arabia. Is it proxies?

19:13Is it Iran themselves? Does the Iranian military still have control over these actors? You know, still, it opens up a box of worms. And again, it's just another reminder that there's still a lot of disruption that Iran can cause. 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.

19:56Plus, 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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