Israel-Iran Strikes Escalate; Spaun Wins US Open in Dramatic Finish
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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, fighting between Israel and Iran is now into its fourth day with no sign of easing. Iran has fired several waves of drones and missiles over the last 24 hours, while Israel continued hitting the Islamic Republic's capital Tehran, killing one more senior military official. Stuart Livingston-Wallace heads our Middle East coverage. It's a combination of what appear to be very precise tactics,

by Israel on Iranian targets, and that largely encompasses nuclear sites, military sites. And it does appear at this stage, and given everything we've seen over the last four days, that Israel now more or less has a free hand within Iran. And it's been quite surprising, I suppose, how little response Iran seems to have to those strikes. And then on the other side...

It's been sort of throwing back ballistic missiles and drones in very large quantities. And that seems to be a lot less precise. I mean, largely the strategy there seems to be to try and overwhelm Israel's rather impressive air defenses. Bloomberg's Stuart Livingston-Wallace reports the casualty toll is rising. Iran's government says 224 people have been killed, while Israel says Iranian attacks killed 23 people and injured more than 400.

Well, Nathan, President Trump says he believes Israel and Iran could eventually reach a peace agreement, but suggested they may have to continue their conflict before coming to the negotiating table. The president spoke to reporters as he prepared to board Marine One. I think it's time for a deal and we'll see what happens.

Sometimes they have to fight it out, but we're going to see what happens. I think there's a good chance there'll be a deal. President Trump speaking before he left to attend the G7 summit in Canada. The conflict threatens to open a new rift at the high-level gathering of world leaders. We get more from Bloomberg's David Gura in Alberta, Canada. Conflict in the Middle East is casting a shadow over this meeting of the Group of Seven, even if it hasn't scuttled the official agenda.

Several world leaders have called on Iran and Israel to de-escalate the situation, and it's unclear if the group will issue a formal statement on the conflict.

A broader joint communique is not in the cards. Prime Minister Mark Carney is being careful not to upset President Trump, who withdrew from that agreement the last time Canada hosted the G7 in 2018. In Banff, Alberta, Canada, I'm David Gurra, Bloomberg Radio. All right, David, thank you. President Trump appears to be doubling down on his mass deportation policy after a weekend of

protests across the country. In a Truth Social post last night, the president called on ICE agents to expand deportations in the largest U.S. cities, including Los Angeles, New York and Chicago. Democratic Senator Alex Padilla of California says the raids are going too far.

For all the talk about the focus and targeting of violent criminals, if that's all the Trump administration was doing, there would be no debate. But as you're hearing more and more stories of undocumented long-term residents of the United States who are otherwise law-abiding, that's who's being targeted. California Senator Alex Padilla appeared on CBS's Face the Nation, heard Sundays on Bloomberg Radio. Last week, President Trump appeared to acknowledge the impact his policies have had on rural communities and promised changes to protect farm and hotel workers.

Nathan, a manhunt that lasted much of the weekend is over in Minnesota. A suspect is in custody in the killing of Democratic state lawmaker Melissa Hortman and her husband and the shooting of state Senator John Hoffman and his wife. Minnesota Governor Tim Walz says the suspect, 57-year-old Vance Bolter, was arrested after a trail camera picked him up near his farm. The FBI had been offering $50,000 for information leading to his arrest.

To the law enforcement who stand here and the hundreds who were involved in this, the state of Minnesota owes you a deep grid of gratitude. Thank you. You ran towards the danger and you served the

the state of Minnesota. Governor Walz announced the arrest last night. Authorities are still investigating a motive behind the attack. A government document seen by Bloomberg News points to a purported hit list at the crime scene that included the names of several Minnesota politicians and abortion providers in the state.

Karen, let's turn to markets now. Futures are higher as we kick off a new trading week, a week that will be highlighted by a Fed decision. Let's bring in Bloomberg's John Tucker with the very latest. John, good morning. And Nathan, the central bank concludes its two-day meeting on Wednesday. This is expected to hold rates steady this meeting, but there could be some change in tone about possible future cuts at Chairman Jerome Powell's press conference that follows the meeting. Robert Dishner is with Neuberger Berman.

We're still of the belief the Fed's going to cut twice this year. You know, the forecast may move down to one cut this year. But does then the Fed give the market something for next year? Do they increase that to three cuts next year? Policymakers have been pretty clear. Before they can make a move, they need the White House to resolve the big question marks around tariffs, immigration and taxes.

And Israel's attacks on Iran have also introduced another element of uncertainty. The Fed meeting comes as President Trump has turned up the pressure on Jerome Powell to lower rates. A fourth straight meeting without a cut could provoke another tirade from the president. In New York, I'm John Tucker, Bloomberg Radio.

John, thank you. In sports, it was quite a memorable finish at the U.S. Open in Oakmont. Let's bring in Bloomberg Sports reporter John Stashower with the dramatic details. John, good morning. Good morning, Karen. It was an open where all the golfers struggled against the mighty Oakmont course, but it ended with a remarkable 65-foot putt on the last hole. For the win, J.J. Spahn, ball up and over the ridge. It's on a very good line. This could go in. J.J. Spahn!

the biggest moment of his career. J.J. Spahn conquers Oakmont and is your 125th UN Champ champion. US Open Radio had the call. That punt was the longest that anyone had made throughout the four rounds. It left Spahn with the only under par score and unlike the Open champion, he'd only won one PGA tournament in his career. We'll hear from him coming up shortly. John Staschauer, Bloomberg Sports.

Yeah, got to be one of the loudest golf calls I've heard in quite some time. Thank you for that, John. Back to markets. Now we're watching shares of Caring. They are higher by more than 10% in Europe. The owner of the struggling Gucci fashion label is preparing to name the chief executive officer of Renault as its next CEO in a bid for a turnaround. Bloomberg News has learned that Luca Di Meo is going to be appointed to the job in the coming days. Watching shares of Renault, they are down more than 7%.

Nathan, another activist investor is seeking changes at Victoria's Secret. Bloomberg News has learned Barrington Capital Group, which has built a stake in the lingerie retailer, plans to push for a board overhaul. Earlier this month, one of Victoria's Secret's largest investors, BBRC International, also called for major board changes.

And back in this country, shares of Sarepta Therapeutics, they are down more than 36%. That company paused a clinical trial after a second patient died of acute liver failure after being treated with Sarepta's gene therapy for a rare muscle disorder.

And it's 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. More than 2,000 nationwide so-called No Kings events were held over the weekend. While most were lawful, there was trouble at some. In Salt Lake City, what started out as a peaceful protest turned into chaos. Gunfire broke out, killing a 39-year-old man.

There were confrontations between police and protesters in Portland, Oregon, in Washington State, and in Atlanta. In Los Angeles, police broke up crowds. The LAPD says 35 people were arrested for breaking the city-imposed curfew after crowds turned out for the No Kings protest.

As he left the White House yesterday to attend the G7 summit in Canada, President Trump credited National Guard troops he activated for peaceful protests in Los Angeles. They come and they check and they say, is the National Guard going to be there? And if the National Guard is being there, they don't even show up. Meanwhile, the mayor of Los Angeles, Karen Bass, credits the curfew for keeping the peace.

The jury in Karen Reed's murder retrial returns to deliberations today. Reed is charged in the murder of her Boston police officer boyfriend in 2022. The first trial ended in a hung jury. The defense is raising concerns about the complexity of juror guidelines.

Heavy rain has killed at least five people in West Virginia, including a three-year-old child. This person escaped a flooded apartment building in Fairmont. First floor of our building was completely flooded and all of our belongings destroyed. We have a dog that's still inside the building.

and I have no clue what to do now. - The governor says several more people are missing. Two top union leaders have quit their post in the Democratic National Committee. According to the New York Times, it's over a dispute with the party's new chairman, Ken Martin.

Randy Weingarten, leader of the American Federation of Teachers, and Lee Saunders, head of the American Federation of State, County, and Municipal Employees, resigned. Weingarten and Saunders had supported Martin's competition for the chairman's spot, Ben Wickler.

Global news 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Karen. All right, Michael Barr, thank you. It's time now for the Bloomberg Sports Update. It's brought to you by Flushing Bank. And we bring in John Stanshauer. John, good morning again.

Thanks, Karen.

drove the green and his birdie put him back on top. He sealed the win with that astonishing 65-foot punt on the 72nd hole. Very much a late bloomer. Spahn didn't make it to the PGA Tour until he was 26, but he nearly won the Players' Championship, lost in the playoff to Rory McIlroy, and now at age 34, the Open champion. I never thought I would be here, you know, holding this trophy. I mean, I've always had aspirations and dreams, but...

Like I said, you know, a few months ago, I never knew what my ceiling was. I never knew how good I could be, but I'm just proud that I've been resilient in my career and pushed through a lot of things and just trying to be the best golfer I can be. Robert McIntyre, the lefty from Scotland, finished second, two shots behind. Lost weekend for the Yankees and Mets. Both got swept for the first time this season. Yanks shut out in Boston 2-0, so they scored only four runs in three games, the fewest they've had

in a three-game series at Fenway Park. In more than a century, Raphael Devers homered for the Sox, and then after the game, Devers, in a shocker, got traded to the Giants for some young players. Devers was in the second year of a 10-year contract. The Mets at Citi Field lost to Tampa Bay 9-0. The Rays scored 24 runs in the three games, and when the Phillies finished a sweep of Toronto, they were just three games behind the Mets. They'll play Game 5 of the NBA Finals tonight. The series tied at 2. They're back

at Oklahoma City, but Indiana has won seven of its last nine on the road, has not lost two in a row in the playoffs. John Staschauer, Bloomberg Sports, Karen and Nick. All right, John, thank you. And Bloomberg Daybreak is brought to you by Flushing Bank. Life's more rewarding with Flushing Bank's complete cash rewards program for personal and business accounts. With 29 New York Metro locations, there's nothing more rewarding. Visit FlushingBank.com, member FDIC.

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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 on another morning of intense fighting between Israel and Iran. The hostilities have stretched into a fourth day. Israeli Prime Minister Benjamin Netanyahu is calling the conflict an existential campaign for his country.

We can't have the world's most dangerous regime have the world's most dangerous weapons. We're protecting ourselves, but by doing so, we're protecting many others. Israeli Prime Minister Benjamin Netanyahu speaking there. For the very latest, we are joined by Bloomberg News Israel Bureau Chief Ethan Bronner in Tel Aviv and Bloomberg Horizons anchor Jumana Bersetchi joining us from Dubai this morning. Good morning to both of you. Ethan, I'll start off with you just to get us up to speed on what we've seen in just the last 24 hours of fighting. Good morning.

Morning, Nathan. Yes, there were some fairly serious missile barrages here in Israel. I think eight people were killed today. The number of dead in Israel is now 24, and some hundreds are injured. I took a look recently where just about a half a mile from my apartment, a pretty serious barrage missile fell.

Beyond that, Israel has been attacking increasingly. It says it took away, it killed the intelligence chief and his deputy and has expanded its attacks as well. And Jumana, what is the extent, as far as we know, of the damage in Iran at this point? Ethan just mentioned that another senior Iranian military official has been killed as well. What is the possibility that Iran can mount a major response to what's been happening?

Yeah, if you look at the approach that Israel's Air Force has been taking, they've been looking to target strategic bases, be they some of the military bases, the surface-to-air launchers, surface-to-air missile launchers have been targeted, some of those nuclear sites as well. The IAEA saying over the course of the weekend that Isfahan, which is one of the, actually the only uranium conversion facility that Iran has,

was severely impacted and will set back their ability to continue with the uranium enrichment process by several months. So an operational success, if you want to call it, from the Israeli perspective there. But then in terms of intelligence penetration as well, we talked about the fact that the operation itself was months worth of preparation.

And on the back of that, you've seen some senior leaders, commanders from the Revolutionary Guard get taken out. The number now stands at six, alongside some of those nuclear scientists as well who were key to the technological and scientific know-how with the nuclear development. And so from a military standpoint, defence standpoint, and also intelligence standpoint, you could say that Israel has had a lot of operational success

so far in the first four days of this conflict. And we're just hearing from Israeli sources that they claim that they've achieved aerial superiority now over Tehran. Ethan, of course, we've heard from Israeli Prime Minister Netanyahu that the goal is to take out Iran's nuclear capability. What does that suggest about how long this fighting could go on?

I mean, the problem is that Israel alone cannot take out Iran's nuclear capability, at least as far as we know. I mean, as you say, they now say they have aerial freedom. And so maybe they could, you know, plant their F-15s or F-35s and just plant them.

pop, pop, pop, but it seems unlikely that they could get into Florida, which is deep, deep into a mountain. So it's very hard to tell. I'm being told that there's intense diplomatic effort. Both the Russians, the Americans and others are trying to get somewhere here to make this thing not go forward. But just today, this national security advisor of Israel said on the radio that Iran still has thousands of ballistic missiles. If that's true, this could go on for weeks and months.

Joanna, from your perspective, what is the possibility of a diplomatic breakthrough here? We've heard from President Trump on his way to the G7 saying that it might take a little bit more fighting between Israel and Iran before there is a resolution.

Yeah, and I mean, also in that same post, President Trump also spoke about Iran and Israel should make a deal and will make a deal, but then that many calls and meetings are taking place. So what we know is that many of the Arab GCC states are actively trying to intervene here. Iran called on Qatar. Qatar have been playing a key mediation role in those Iran-U.S. nuclear discussions. Remember, the sixth round of talks were supposed to take place yesterday. They no longer happened. But as we understand now, Iran...

Oman and Qatar are getting actively involved again to restart those discussions. Now, seemingly because Iran is on the back foot, maybe they'd be more amiable to some of the terms that the U.S. are putting out. Saudi Arabia, their part as well. I should just say, too, I think it is notable that even though there's been an intensification of strikes between the two sides over the course of the weekend, there hasn't been a broadening out into the region, so to speak. The energy infrastructure, yes, there were a few facilities that

were set alight over the course of the weekend, but still no major energy exporting facilities have been hit, none of the shipping lanes in the Strait of Hormuz have been disrupted, and of course U.S. bases have been spared at this point in time. So remains to be seen whether the diplomatic channel will be successful, but for now the attacks are focused on the bilateral kind as opposed to Iran taking it one step further and the risk of bringing in

the broader region into the conflict as well. From your perspective, Ethan, what are you seeing in terms of the kind of leverage that the U.S. could have over Israel as it continues strategically along with the fighting against Iran? We heard the president or we heard some reports that the president had discouraged Israel from going after the Ayatollah when he had the chance. What are you hearing?

Yes. Look, I mean, I think that there is sort of a double game, not surprisingly, being played by President Trump here. On the one hand, taking a public posture against this kind of action. On the other hand, from everything we've been able to learn, privately saying to Netanyahu, go ahead and do what you have to do. I think that Israeli and U.S. interests do overlap to some extent here. Neither wants to see a nuclear weapon in the hands of this Iranian regime. So in terms of, you know,

what kind of ability Trump has over in his own area. He has an enormous amount in the sense that Israel does not want to be taking these actions without the agreement of the United States, and ultimately it can't do what it needs to do without the help of the United States. So a lot, but I think, but the point is that we don't know exactly what Trump wants out of this operation. And my impression is he's doing both things at once.

Jumana, Iran is reportedly moving toward no longer following the nuclear nonproliferation treaty now. We've been hearing those reports as well. Where could this go from here? Yeah, and I think that is really important to note in the run-up to the attacks that took place on Friday because it wasn't a coincidence that that also coincided with the IEA report suggesting that for the first time in Iran,

in decades Iran was breaching some of the requirements as put out by the non-proliferation treaty. They also announced that they were setting up yet another uranium enrichment facility. So had been testing the waters for a while, which is why ultimately you did end up getting the response out of Israel and the surprise attack from the Iranian perspective on Thursday evening. But it would constitute

a major development and also just in terms of the ultimate objective of this war or or the series of attacks which is to stop iran from developing the means of of of getting a nuclear weapon if they start pulling out of these treaties and don't allow for instruct inspections or monitoring

the whole thing could backfire. And some analysts are saying that the reaction to this out of Iran could be even more hawkish. It could actually even encourage them more so to develop a nuclear weapon they had in the past, say, than if the U.S. and Iran did manage to agree to the terms of a new nuclear deal. So all of that is up for question now. And Ethan, if that were to be the case, does that raise a question of even further proxy attacks from the likes of Hamas and Hezbollah?

Look, it might, but the truth is that what's striking right now is that Hezbollah has not done a thing, which means it really can't or it's really in some fashion under such pressure internally in Lebanon to not get involved in this conflict. So one of the main reasons Israel chose to act now, in addition to the things that Jamal talked about, the fact that there's been this increasing amount of enrichment up to weapons grade, is that

the proxy militias were not available to join into this war, as well as the fact that the Iranian air defense system had been largely, had been certainly reduced, if not stripped away entirely. So I don't see that happening, but this question of the NPT is enormously important. But at the same time, if Iran is simply going to be openly

seeking a nuclear weapon. I think that would shift the American perspective as well and whether it might want to get involved militarily. 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.com.

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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. Switch to Verizon Business and get more from your internet without paying more for your internet. Get LTE Business Internet starting at $39 a month when paired with select business mobile plans. That's unlimited data and with it, unlimited possibilities. Start saving today with Verizon Business, ranked number one in small business internet customer satisfaction by J.D. Power.

Starting price for 25 megabits per second LTE internet plan with smartphone plan savings, plus taxes, fees, and economic adjustment charge. Terms apply. For J.D. Power 2024 award information, visit jdpower.com slash awards. How can you free your team from time-consuming office tasks? Amazon Business empowers leaders to not only streamline purchasing, but better support their teams.

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