Iran Vows Intensified Response; Senate Rejects War Powers Measure

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or Russia. All of those things need to be factored in. And again, it's one of the reasons why if you're going to undertake something like this, you've got to make sure that you've factored all of that in. And you can catch David Gurus full conversation with former Secretary of State Blinken on the big take wherever you get your podcast. Well, Nathan, we are seeing oil on the rise once again this morning. West Texas Intermediate is up 2.2% at $76 at $7.00. $0.76. Bloomberg Middle East News Director, Will Robert F. Kennedy Jr., believes President Trump is closely monitoring the energy market. I do think the oil price is an important calculation for him. And although the price has been significant, it's worth bearing in mind that it's not out of control, that prices in the low 80s and not beyond where they've been in recent years. Prices went well above $100 at the start of the Russia-Ukraine war. So it may be in Washington's calculation that these oil prices are manageable. Bloomberg's Will Robert F. Kennedy Jr. on Iranian television this morning. A military official claimed Iran has not closed the Strait of Hormuz. No, the war continues to have a major impact on the airline industry, Karen. The number of canceled flights to Middle East hubs has now surpassed 23,000 and thousands of passengers are stranded in the Gulf region with more than half of all scheduled flights to or from the Middle East canceled. We get the latest from Bloomberg Aviation and Transport reporter, Danny Lee. Priority has really been given to people to get out of the region. And we have seen over the recent days the likes of Emerson and Etihad Airlines starting resuming some flights to get people out. But clearly for now, there's a pretty broad disruption overall. It's Bloomberg's Danny Lee in the State Department says 17,500 Americans have safely fled the region. It's urging others to register via its website. Nathan, Amazon, also being impacted by the war in the Middle East, drone strikes have damaged three facilities operated by Amazon in the United Arab Emirates and Bahrain. And Israel and the U.S. have reportedly hit at least two data centers in Tehran, one of them connected to the Islamic Revolutionary Guard Corps. And Karen Goldman Sachs, CEO David Solomon, says he's surprised so far by the reaction to the Iran attacks in the markets. But in an interview with Bloomberg, he says he does not see complacency. I think there's a lot of uncertainty around the direction of the conflict, how it'll be resolved, you know, what the off-ramps are. And, you know, I think it's fair to say when you look at markets, market reactions have been relatively benign. And I certainly could have seen over the last couple of days, you know, a little bit more volatility. But I don't think people are being complacent. I think that market participants are looking and trying to say, you know, how is this going to play out? What's the end game? And catch the full interview with Goldman Sachs CEO, David. Solomon on Bloomberg's new video experience on the Bloomberg business app. Nathan Fed Governor Stephen Myron is still pushing for interest rate cuts even with the war in Iran and we spoke with Myron yesterday.

I think it's a moment to continue acting. We have, I have policies, I have projections for unemployment. I have projections for labor markets, so do my, for, for inflation, so do my colleagues. And I believe it's appropriate to continue acting in accordance with those projections until you get evidence that you have to change your projections. And thus far, the evidence from events over the weekend haven't led me to change any of my forecast for the labor market for inflation over the medium term. So it's too early to respond to them. Fed Governor Stephen Myron says it's too soon to say how the war will affect the U.S. economy and other Fed officials have said the risk of higher oil prices is clouding their outlook. Turning to the equity markets, Karen, futures have turned a touch lower this morning following yesterday's gains on Wall Street. Shares of Broadcom are still in the green up 7% in early trading. The company expects AI chip sales to top $100 billion next year. Broadcom also delivered a better-than-estimated quarterly outlook and announced a stock buyback plan worth it. as much as $10 billion. Well, in Asia, Nathan, China has set its lowest growth target since 1991, as policymakers finally appear to acknowledge the difficulties facing the economy, including deflation, tariff risks, and the property sector. And here's Chinese Premier Li Chiang, speaking through an interpreter in Beijing earlier this morning. The main targets for development this year are as follows. GDP growth of 4.5% while striving were better in practice. And that's China's Premier Li Chiang. Hanging over any projection is a summit between Leader Xi Jinping and President Trump, which could determine the level of tariffs charged on Chinese goods. And this programming note, Karen, as we've just seen this past week, and markets to close on Friday, but the world doesn't. That's why we're bringing you a new live radio and TV show. Bloomberg this weekend is looking beyond the daily headlines to the bigger themes, driving politics, business, and culture. Join David Gurra, Christina Ruffini, and Lee. Mesa Mateo for smart conversations and in-depth interviews that help make sense of the week that's been and what comes next. Get Bloomberg this weekend live Saturdays and Sundays from 7 a.m. Eastern on Bloomberg Radio, Bloomberg Television, and the Bloomberg business app. Time 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 House Oversight Committee has voted to subpoena Attorney General Pam Bondi as part of its investigation into convicted sex offender Jeffrey Epstein. Commerce Secretary Howard Lutnick has also agreed to answer questions about his past ties to Epstein, including emails showing a visit to Epstein's private island years after Howard Lutnick's. as he cut off contact. Democratic Congressman Stephen Lynch of Massachusetts is a senior member of the committee. With Pam Bondi, it's a different situation. She has withheld meaningful and important documents from Congress. She scrubbed the information that she gave to Congress from all references to Donald Trump.

Lynch says the Trump administration had 6 million documents. They gave us 3 million. Minnesota Governor Tim Walz and state attorney general Keith Ellison appeared before the House Oversight Committee to testify about alleged fraud in state programs. The committee accused Walls and Ellison of knowing about alleged fraud for years and failing to act on it. Committee Chair James Comer accused the leaders of ignoring warnings from more than 30 whistleblowers. What we've uncovered in Minnesota is not a paperwork error or a few bad actors slipping through the cracks. It is sustained failure of leadership. Walls defended their leadership, saying the allegations are being used as rationale for President Trump's deadly immigration raids in the state. In Minnesota, if you do fraud public programs, if you steal taxpayer money, we'll find you, we'll prosecute you, we'll convict you, and we'll throw you in jail. Ellison says Operation Metro Surge did nothing to address fraud in our state, harmed our economy, and scarred our people. U.S. and Canadian military aircraft were sent to the skies in response to an ultimately unfounded security threat on a Scandinavian airline's flight bound for Newark Airport. The plane landed safely. 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. Thank Karen. Lou Holtz has passed away at the age of 89, a member of the College Football Hall of Fame. He took over at Notre Dame in the mid-1980s in his third season. He coached the Irish to the National Championship. The Patriots have released wide receivers, Stefan Diggs after just one season with them. He played well, but this saves them $16 million in the salary cap. Diggs becomes a free agent. Kansas City Chiefs have traded cornerback Trent McDuffie to the... LA Rams, the Chiefs get the Rams, first round pick and three other picks. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. Support for the show comes from public.com. If you're actively involved in your portfolio, you probably catch yourself repeating the same actions, buying the dip, manually sweeping idle cash, putting on a hedge. On public, you can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English. Like, if the VIX hits 25, buy a put option on the S&P 500. Or, if my cash balance goes above $20,000, move the excess into my direct index. You approve the workflow and your agent handles the risk. Monitoring the market, watching for your conditions, and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com slash market and fund your account in five minutes or less. That's public.com slash market.

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Coast to coast on Bloomberg Radio, nationwide on SiriusXM, and around the world on Bloomberg.com and the Bloomberg business app. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager on day six of the U.S. Israeli war with Iran. There is little sign of let up on either side, and President Trump continues to make the case that he was justified in going after Tehran. They're attacking their neighbors. They're attacking their, in some cases, allies or not so long ago allies. And, you know, it's really a nation that was out of control. It was President Trump at the White House. We're joined now by Bloomberg News, Middle East Breaking News editor Patrick Sykes. Patrick, thanks for coming back on with us. If you could get us updated on the latest that's been happening in the region. Good morning. Morning, yeah, I think pertinent to those Trump comments there. Just, you know, since yesterday we've seen the first incidents, both on Turkish soil, with a ballistic projectile intercepted above Turkey yesterday. And then today, just a short while ago, the first incident in Azerbaijan with a drone falling on Azeri territory. So I think, yeah, again, just indicating even if perhaps the overall volume of the volleys of missiles being fired might be falling from Iran, we're still seeing the conflict sprawl out in terms of geography. And we also saw yesterday the first strike by an U.S. submarine on a surface vessel since World War II off India's backyard. What does that tell us about the potential scope of this conflict, Patrick? Yeah, absolutely. I mean, I think it just shows that the U.S. is prepared to go far, far away from Iranian shores, Iranian territory. in pursuit of these objectives that it's laid out. I think the maritime aspect of it is also important because Iran was saying just earlier today that it will make America regret that particular attack, that incident. And I think that matters because of all the munitions that Iran will have around the Persian Gulf and all the tensions around shipping there at the moment. I think it's going to give Iran an extra incentive to try and... target shipping, perhaps even military shipping in the region. As the conflict continues, Patrick, we'd seen some headlines across the Bloomberg terminal of Iran saying it had offered some deal terms before the conflict began. Tell us more about that and what to make of it. Yeah, that panicked the market a bit because it was sort of recirculated comments. They were actually made kind of overnight a few hours ago by a deputy foreign minister. in Iran, but it shows just how on edge the market is that they were reacting. The idea was that Iran was willing to give up, not its nuclear program, as some had reported, but the highly enriched stockpile of uranium that it's built up if it was able to get something attractive in exchange. I think substantively, that wasn't really new to us, but I think, as I said, you know, the market reaction just shows how eager people are for new information and the level of... anticipation that's out there. I imagine it resurfaces the question of the ultimate end goal for the U.S. and Israel. If that kind of offer of giving up just enriched uranium wasn't enough, what could the potential end goal be for the U.S. and Israel at this point? Yeah, I think part of the problem is that those goals, you know, frequently though we see them being laid out, they tend to vary, right, day to day, week to week. Sometimes it's about...

a nuclear bomb, which, of course, Iran says it doesn't have any way. Sometimes it's about missiles, other times it's about threats to the region. The current line that, you know, I think it was the U.S. saying they want to remove Iran's ability to project threats is obviously a little bit more ambiguous than some of the above, which, again, I think just leaves a lot more room for the conflict to spiral, and in turn for Iran to keep ramping up from its side. In our last 30 seconds, with airline cancellations piling up, how are Western citizens getting out at this point? Yeah, there's still a lot of panic and confusion. I think there's some mixed guidance from some of the countries in the West, but still many, many people stuck in the Gulf coming through the Gulf or further afield stuck. And I think some countries have been trying to send aid. Individual companies will likely be looking at potential evacuation options, but it's still all, I'd say, rather unclear for the moment. 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 991 in Washington, Bloomberg 929 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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