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You can find new episodes of the Bloomberg Daybreak Europe podcast by 7am in Dublin or 8am in Brussels, Berlin and Paris. on Apple, Spotify, YouTube, or wherever you get your podcasts. 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, nearly a month into a fragile ceasefire in the Middle East, the U.S. and Iran have been trading fire again. This morning, a relative calm has returned, but not before U.S. Central Command says the military fought off Iranian drones, missiles and small armed boats as it guided two U.S. flagged vessels through the Strait of Hormuz. The United Arab Emirates says it has also intercepted Iranian cruise missiles and taken a hit to its Frujera port from an Iranian drone. We get more from Bloomberg's Jumana Bersechi in Dubai. As a resident of the UAE in the evening yesterday, we received multiple missile alert texts throughout the course of the night. This happened after an Adnok tanker was reportedly targeted by an Iranian drone. And then it also emerged in the evening that an Iranian drone had also managed to intercept UAE's air defense system and cause some damage at an oil exporting facility. And this is the first time we get such an incident in, as you say, the four weeks since the ceasefire. Bloomberg's Jumana Berset, she reports all this is raising questions now about whether the ceasefire has been broken. Well, Nathan Chevron says the conflict has forced the company and other oil majors to reduce Middle East production. CEO Mike Wirth says he's been warning the White House that supplies are tightening. He spoke to Bloomberg at the Milken Global Conference in Los Angeles. My advice to the president really relates to energy markets, not to diplomacy and negotiations. And, you know, I've advised people in the administration that the buffers in the system that help ensure supplies are available to markets are being drawn down. And what that does is it creates more upside price pressure, potentially more volatility and more risk. And you can see our entire interview with Chevron CEO Mike Wirth and dozens of others from the Milken Global Conference. They're all on our new video experience on the Bloomberg Business App. McCarran officials are investigating a shooting not far from the White House. The Secret Service says law enforcement shot an unidentified man near the Washington Monument after he opened fire on them. Secret Service Deputy Director Matt Quinn says agents were called about a suspicious person who appeared to be carrying a firearm. Upon making contact, that individual fled briefly on foot, withdrew a firearm, and fired in the direction of our agents and officers. They returned fire and engaged. That individual was hit. Secret Service Deputy Director Matt Quinn says a teenager was also shot but not seriously hurt. A motorcade with Vice President J.D. Vance had passed through the area shortly before the confrontation, but the Secret Service says there is no indication he was a target. Nathan, Senate Republicans have unveiled their plans to pay for President Trump's immigration enforcement agenda for the rest of his term. The bills from the Homeland Security and Judiciary Committees would greenlight a combined billion for Immigration and Customs Enforcement and Customs and Border Protection The Secret Service would also receive a billion dollars for security enhancements to the President's White House Ballroom project. Republicans could move the bills through the Senate as soon as next week without Democratic votes under the budget reconciliation process. Karen, some key elections are on the docket today. Ohio is holding statewide primaries and a prominent ally of President Trump's running for an open governor's seat. And there are competitive races for the House and Senate as well. Bloomberg's Amy Morris reports from Washington. The race to replace outgoing Republican Governor Mike DeWine includes Trump-backed tech entrepreneur Vivek Ramaswamy. The winner will face Dr. Amy Acton, who is unopposed for the Democratic nomination. In the Senate race, former Senator Sherrod Brown is running to reclaim his old job. He faces Ron Kincaid for the Democratic nomination. One of the notable House races features a crowded Republican field competing to take on 22-term incumbent Democrat Marcy Kaptur in the 9th Congressional District. In Washington, Amy Morris, Bloomberg Radio. All right, Amy, thank you. Let's turn to the markets now, and futures are higher following yesterday's war-related declines. Still, the S&P 500 up more than 5 percent this year. Well, the Nasdaq is up almost 8 percent. Stuart Kaiser is head of U.S. equity trading strategy at Citi. You know, on our estimates, retail is accounting for about seven and a half percent of equity trading volumes. That number was as high as 11 or 12 earlier in the year and as higher as 15 back back in October. So retail is present. But I do think this is more and more institutional in the U.S. So hedge funds getting their risk up. And then, frankly, I think international investors have gravitated back towards the U.S. similar to the way they did last April. And Citi's Stuart Kaiser also says better-than-expected earnings have helped fuel the market rally. And Karen Palantir is one of those companies that have topped earnings estimates and raised their revenue outlook for the year. However, in Palantir's case, the tech company also posted disappointing commercial sales in the U.S. for the first quarter. Stock is down more than 3%. Let's look at the flip side. Nathan, shares of Intel, they're up more than 3% in early trading. Bloomberg News has learned Apple has held discussions about using Intel and Samsung electronics to produce the main processors for its devices. We get the story with Bloomberg's John Tucker. Sources say the iPhone and iPad maker has had early stage talks with Intel about enlisting the company's chip making services. Meanwhile, Apple executives have made visits to a Samsung plant under development in Texas that will also make advanced chips. For more than a decade, Apple has designed the main processors known as systems on a chip that power its devices and relied on Taiwan semiconductor manufacturing to build them using the most advanced production processes in Taiwan. Apple is considering additional suppliers due to supply chain disruptions, including recent shortages driven by the build-out of AI data centers and higher demand for Macs, which has constrained the company's growth. I'm John Tucker, Bloomberg Radio. John, thanks. In Europe, shares of HSBC are down about 6%. The London-based bank reported profit that missed estimates. HSBC was weighed down by an unexpected fraud-related charge in the UK and rising economic risks from the conflict in the Middle East. And Nathan, a fine for Elon Musk. The billionaire has agreed to pay $1.5 million to settle SEC allegations that he cheated Twitter shareholders in 2022 by failing to properly disclose his growing stake in the social media company. It's a much smaller penalty than what Musk's attorney says the SEC initially sought. A letter from 2024 seen by Bloomberg News shows the agency asked Musk to pay more than $200 million to settle. 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 A close call at Newark Airport is raising new concerns about aviation safety Investigators say a United Airlines jet came within feet of disaster when it struck a tractor trailer and light pole while landing There were no injuries on board the plane. United now has removed the flight crew from duty and is pledging a thorough investigation along with the NTSB. Transportation Secretary Sean Duffy. This is unacceptable. We have really well trained pilots. This is one. This should never happen in America. The driver of the truck was treated for minor injuries and is okay. The sudden collapse of Spirit Airlines is not only affecting travel, it's affecting local economies. Near Pittsburgh, the executive director of Arnold Palmer Regional Airport, Maurice Haas, says the loss of flights will force downsizing. We hate to do that because it's one big family here at the airport. I mean, a lot of people put their heart and soul in making this place thrive. Airport director Maurice Haas says they will have to let people go until they can find a replacement airline, and that could be a few months from now to maybe a year. New York City officials say that anti-Semitic graffiti, including swastikas, were spray-painted on Jewish homes and synagogues in Queens. Congregants at a synagogue are angry. I really lived in a comforting cocoon. I grew up in Forest Hills, and I felt, oh, it can't happen here. Police say that no arrests have been made. A spokesman for Rudy Giuliani says the former New York City mayor is now breathing on his own. Spokesman Ted Goodman says, though, Giuliani is still in critical condition as he recovers from pneumonia in a Florida hospital. Goodman said that the lung infection had overwhelmed Giuliani and that he had required a ventilator to breathe. It's unclear when the 81-year-old former mayor was hospitalized. 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. How on to the Knicks. They've won four straight playoff games. They've been by 14 points, then by 29-51. And last night in New York, a 39-point round of Philadelphia in game one of that playoff series. In the West, Minnesota won by two in San Antonio to take the opener of that series. Carolina Hurricanes undefeated in the Stanley Cup playoffs. They beat Philadelphia 3-2 in overtime. They lead the series 2-0. Vegas won game one from Anaheim. Yankees over Baltimore 12-1. The Yanks have won 16-18. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. As markets move and headlines break, what matters most is context. A Bloomberg subscription gives you unmatched reporting, sharp analysis, and powerful tools that help you connect the dots. Visit Bloomberg.com slash podcast offer to learn more. 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. Tensions in and around the Strait of Hormuz are flaring into open fire between the U.S. and Iran nearly a month into their ceasefire. But after more than two months of war, President Trump says it had to be done. Can't let them have a nuclear weapon where you're going to have problems like nobody would believe. And it's going very well. Was President Trump speaking at a small business summit at the White House yesterday. Joining us this morning from Dubai is Bloomberg's head of Middle East coverage, Stuart Livingston Wallace. Stuart, it's good to speak with you this morning. How are things going? How fragile is the ceasefire this morning? Good morning. Good morning, Nathan. I mean, I think it's fair to say it is fragile, but in some respects, has been fragile since day one. I mean, we did have sort of open fire within the first couple of days of the ceasefire. And as you said, you know, things were already hotted up yesterday. Now that largely seems to have been triggered by this US attempt to open a passageway through Hormuz. They did get at least a couple of ships through that we aware of You know there were a couple of US Navy ships that went through there was a commercial ship that went through And the response I think from the Iranian side was to you know dramatically try and close it again So we had fire on commercial shipping around the UAE. We had, you know, missiles and drones take off again, again, headed towards us. Now, they were largely successfully intercepted. But it is sort of, I guess, a warning to us all that, yes, we are in the middle of a ceasefire, but it's a pretty fragile one. And it's quite hard to see just what the definitive agreement will look like when both sides are clearly determined to keep pressing ahead. So after the flare ups that we've seen over the last 24 hours, are we back to a point that we were sort of at the height of the war where we're asking whether other countries are going to get thrown into this conflict? particularly with the UAE intercepting some of the fire it's taken recently? Yeah, I mean, I don't think we're quite there yet. Again, you'll hear the hesitancy in my voice because it's been very hard to predict what the next steps in any of this conflict are. I mean, it's one unprecedented event after another, starting from the closure of Hormuz to, you know, to Iran directly attacking the Gulf states. So in terms of what comes next, I think the US administration is probably going to want to wait and see a few days at least whether this new initiative to open up Hormuz has some impact, whether that can be sustained. And also looking at the Iranian side, I mean, one thing that's certainly come up in conversations today is what exactly is the Iranian strategy here beyond blocking Hormuz forever? You know, what exactly do they want out of this? Do they truly expect the US administration to walk away from its red lines that it set out with regard to the nuclear file, ballistic missiles, support for proxies, all these hugely important issues. And again, that's something that we'll see over the next week or two, how that develops. In the meantime, we have certainly Pakistan, but I'm sure lots of other interested parties working hard behind the scenes to try and get the two sides talking again. If you recall, we had that sort of rather aborted attempt at a second round of talks in Islamabad. What was that now? A couple of weeks ago. Again, I think there's a great appetite out there to try and find some common ground. But right now, I don't think anyone's really seeing it. Only about 30 seconds or so left here, Stuart. But is there a sense this morning from where you are that the ceasefire is broken now? Or is there still a chance that it could be holding? I mean, again, it's sort of back to my original answer of what does a ceasefire look like? I mean, in fairness, all ceasefires across this region have been rather patchy, you know, in terms of the multiple conflicts we'd have over the last three years. As things stand right now, and it is just right now, it appears reasonably calm. We've had no fresh reports of attacks on shipping. We've had no fresh missile alerts here in the UAE. So, as a thing stand, pretty calm relative to, you know, the current environment. And again, I think there is great appetite out there to try and move things forward because, you know, right where we are now is having a ripple effect across the global economy. That's not good for anyone. 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. 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. you
