Mamdani Stuns in NYC Mayoral Primary; Trump Disputes Iran Damage Report
22:48 Share

This is an iHeart Podcast. In business, they say you can have better, cheaper, or faster, but you only get to pick two. What if you could have all three at the same time? That's exactly what Cohere, Thomson Reuters, and Specialized Bikes have since they upgraded to the next generation of the cloud, Oracle Cloud Infrastructure. OCI is the blazing fast platform for your infrastructure, database, application development, and AI needs.

where you can run any workload in a high availability, consistently high performance environment and spend less than you would with other clouds. How is it faster? OCI's block storage gives you more operations per second. Cheaper? OCI costs up to 50% less for computing, 70% less for storage, and 80% less for networking.

Better? In test after test, OCI customers report lower latency and higher bandwidth versus other clouds. This is the cloud built for AI and all your biggest workloads. Right now with zero commitment, try OCI for free. Head to oracle.com slash strategic. That's oracle.com slash strategic.

In our new podcast, Everybody's Business, we talk about the business news that concerns everybody. From Bloomberg Businessweek, I'm Stacey Banik-Smith. And I'm Max Chafkin. Each week, we unpack what is happening on Main Street and Wall Street, all the streets.

Join us in Seattle, July 14th and 15th for Bloomberg Green, two days of powerful conversations and meaningful connections.

We'll explore what's next in the climate economy, clean tech, policy, and greener living. Featured speakers include Jane Fonda, Brian Gellert, and Vinod Khosla. The title sponsor is Amazon. Official airlines are Alaska and Hawaiian Airlines. Learn more at BloombergLive.com slash Green Seattle. That's BloombergLive.com slash Green Seattle. 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'll have details on the latest intelligence reports around the weekend U.S. airstrikes in Iran in a moment. But we begin this morning with the race for New York City Mayor. Zoran Mamdani has declared victory in the Democratic mayoral primary. Let's get the very latest with Bloomberg's Lisa Mateo in Manhattan.

Good morning, Lisa. Good morning, Nathan. Yeah, it was an incredible showing for the 33-year-old Queens lawmaker who was virtually an unknown before rising in the polls against a crowded 11-candidate field. Last night, former Governor Andrew Cuomo, who pitched himself as a seasoned moderate, conceded to his upstart rival. Tonight was not our night. Tonight was Assemblyman Mondani's night.

and he put together a great campaign. According to preliminary results from the City Board of Elections, in the first round of ranked choice voting, Mondamihi garnered 43.5% of the vote and Cuomo 36.4%. Now coming in third place was City Comptroller Brad Lander at

11.3%. Lander and Mondami had cross-endorsed each other. Mondami, who has vowed to freeze rent, seek tax hikes on corporations, the wealthiest New Yorkers, he addressed a crowd of supporters early this morning in Long Island City, Queens. Together we have shown the power of the politics of the future. One of

of partnership and of sincerity. But the results are not official under the city's ranked choice system. A candidate is declared the winner after receiving more than 50% of the votes. The final result, well, that will not be determined until July 1st. That's when voters' backup choices are scheduled to be tabulated.

And Cuomo isn't out of the race just yet, telling the New York Times that he was still considering whether to run in the November election on an independent line. Mondami would also face Mayor Eric Adams, who was running this time as an independent, as well as Republican Curtis Sliwa and independent Jim Walden. Michael Bloomberg, the founder, majority owner of Bloomberg LP, the parent company of Bloomberg Radio, has endorsed Andrew Cuomo. Now, if elected...

Mondami would be New York's youngest mayor in a century, its first Muslim mayor, and the first person of South Asian descent to lead the city. Lisa Mateo, Bloomberg Radio. All right, let's turn now to geopolitics and the latest from the Middle East. A classified report from the Pentagon's intelligence arm.

is raising questions about the extent of the damage from last weekend's U.S. bunker buster bombing of Iran's nuclear enrichment facilities. We get the details from Bloomberg's Jumana Bersetchi in Dubai. President Trump had claimed that they had totally obliterated some of those nuclear sites that they hit at over the weekend, but this latest report put out by the Pentagon itself

the Defense Intelligence Agency suggesting that the blows didn't actually manage to administer the fatal blow that Trump had characterized, instead saying that at most it had set back the nuclear program by as much as six months. They didn't actually manage to

severely cripple some of the core components of the program, especially those centrifuges that are embedded underground. It's Bloomberg's Jumana Bersetchi reporting from Dubai. Now, this morning, President Trump is disputing that report. I believe it was total obliteration. I believe they didn't have a chance to get anything out because we acted fast. If it would have taken two weeks, maybe, but it's very hard to remove that kind of material, very hard and very dangerous for them to remove it.

President Trump spoke this morning at the NATO Leaders Summit in The Hague and comments heard live on Bloomberg Radio. Meanwhile, the truce between Iran and Israel appears to be holding. Israeli Prime Minister Benjamin Netanyahu says the immediate threat from Iran's nuclear program and ballistic missiles has been eliminated, though Netanyahu's military chief is warning the campaign against Iran is not over.

Well, Nathan, the latest developments in the Middle East come as world leaders gather in The Hague for the NATO Leaders Summit. Allies are trying to agree on a new defense spending target of 5% of gross domestic product. And they're trying to project confidence after President Trump fueled doubts about his administration's continued commitment to crucial collective obligations. NATO Secretary General Mark Rudo was asked if the U.S. was still committed to the alliance. For me, there's absolutely no doubt that the United States is committed to the alliance.

Thank you.

but also to equalize. And this is fair that we spend the same as the U.S. is spending. And yesterday, President Trump posted a private message from Mark Ruda in which the NATO general praised Trump's actions in Iran and for making Europe pay in a big way on defense. Right now, Spain remains the only European holdout, an issue Secretary of State Marco Rubio said is a, quote, big problem, according to Politico. Let's turn back to politics here in the U.S., Karen. There is a possible breakthrough in...

In SALT talks, of course, that's the state and local tax deduction when it comes to the big tax cut bill on Capitol Hill. Let's get the details now from Bloomberg's Amy Morris. Treasury Secretary Scott Besant said House and Senate Republicans can cut a deal on the state and local tax deduction within the next two days, resolving one of the key issues that has stymied President Trump's economic legislation. Both sides are working through and we'll have a solution to that.

Next 24, 48 hours. Besson met with Senate Republicans to urge them to unite to pass Trump's tax package by a self-imposed July 4th deadline. He thinks senators can begin voting on the bill this Friday. In Washington, Amy Morris, Bloomberg Radio. All right, Amy, thank you. From Washington to space and the latest launch of a SpaceX Falcon 9 rocket. Three, two, one. Ignition and lift.

And Axiom Space sent a crew of astronauts from four nations to the International Space Station, marking Axiom's fourth crewed mission into low Earth orbit. It's also the first time astronauts from India, Poland and Hungary will go to the ISS. The long-awaited launch lifted off from NASA's Kennedy Space Center in Florida after NASA, Axiom and SpaceX delayed the launch several times due to various issues.

All right, coming back from space right back down to Washington, Karen. Fed Chair Jay Powell is getting ready to resume testimony on Capitol Hill later this morning. He will appear before the Senate Banking Committee. Yesterday at House Financial Services, Chairman Powell said he is still in no rush to cut interest rates while the central bank wakes to see how tariffs affect the economy.

Increases in tariffs this year are likely to push up prices and weigh on economic activity. The effects on inflation could be short-lived, reflecting a one-time shift in the price level.

In remarks heard live on Bloomberg, Fed Chair Jay Powell suggested if inflation pressures remain contained, the Fed could cut rates sooner rather than later. But Powell would not point to a particular meeting. Nathan Scherzer, FedEx. They're down about 6% this morning. The delivery package company forecast a worse-than-expected profit for the current quarter, although it typically provides a full-year forecast. FedEx said it would only share its outlook for the current quarter due to the uncertain global demand environment.

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. There's a bit of relief ahead today from the extreme heat gripping much of the country. Parts of the Midwest will see cooler temperatures, but it will be another brutally hot day in the Northeast. Bloomberg meteorologist Rob Carolin has the latest.

Michael, high pressure will continue to produce hot weather today, just not the excesses that we saw yesterday. We had temperatures exceeding 100 degrees in the New York City area, in Washington, in the Boston area. In fact, Boston set their all-time record high yesterday for June at 102, fourth warmest day there in southern New England.

Looks like the high is beginning to weaken, so temperatures are hot today, but not as hot as yesterday. We have heat advisories in effect from parts of southern New England through the New York City area all the way down into the mid-Atlantic states. Good news is the northeast will be much cooler tomorrow. Michael? Thank you very much, Rob. Court resumes today in the sex trafficking case against music mogul Sean Diddy Combs when his attorneys have a sit-down with the judge on jury instructions.

Both the defense and the prosecution rested their cases after closing arguments deliberations could begin as soon as Friday.

The NTSB criticizing Boeing, its subcontractor Spirit Aerosystems, and the FAA for that terrifying Alaska Airlines flight when a door plug flew off in mid-flight. Miraculously, all 177 people on board survived. The NTSB preliminary report revealing Boeing employees felt pressure to work too fast, making it difficult to avoid mistakes.

NTSB Chair Jennifer Homody credits the fast-acting crew of Alaska Flight 1282. An accident like this only happens when there are multiple system failures. And yet the crew shouldn't have had to be heroes.

Because this accident never should have happened. NTSB Chair Jennifer Hominy says the finalized report will be available in several weeks. 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.

We get it. There are too many car insurance companies trying to convince you that they have the best car insurance rates. We don't think we need to convince you. We're rude, and we do car insurance differently. We don't think it makes sense to only base your car insurance rate on things that have nothing to do with your driving, like your occupation or education.

We'll be right back.

Good drivers could save up to $900 a year when they switch to Root. We're taking an old industry and making it fair. Root Insurance, because better drivers deserve better rates. Download the app today and see how much you could save. Terms and conditions apply, subject to underwriting review. See Root.com for details.

In our new podcast, Everybody's Business, we talk about the business news that concerns everybody. From Bloomberg Businessweek, I'm Stacey Banik-Smith. And I'm Max Chafkin. Each week, we unpack what is happening on Main Street and Wall Street, all the streets.

WrestleMania has taken over the U.S. economy. A poetry that executives write on LinkedIn. A little actual magic in our underrated story of the week. The single greatest marketing campaign the music business has ever seen. I decided to ask people how they felt about the penny going away. Listen to Everybody's Business wherever you get your podcasts.

Join us in Atlanta or via live stream on August 12th for Bloomberg's Business Value of AI event and networking reception. This event will gather business and technology executives to share their experiences and provide insight into how to best use data to optimize the customer experience.

You'll also learn how companies have successfully implemented AI agents that have led to improved productivity and profitability. This program is proudly sponsored by IBM. Register at BloombergLive.com slash AI slash Atlanta.

Time now for the Bloomberg Sports Update. Here's John Stashower. John, good morning. Good morning, Karen. The Yankees in Cincinnati. The Reds started 22-year-old Chase Burns. A year ago, they took him with the second overall pick of the draft, and all Burns did in his Major League debut was strike out the first five batters he faced. The Yanks did get to him in the fourth inning. Ben Rice homered Anthony Volpe at two-run triple. The Yanks led 3-0 in the seventh when Cincinnati loaded the bases. Line track, down below.

♪♪

It's a bases-clearing double for Encarnacion Strand, and the game is tied at three. Network to call. The game went to the 11th inning. Yanks scored one in the top. Reds came back with two in the bottom, won five, four. Yanks have now lost nine of their last 12. They're one and six in extra inning games. The Mets in their last 11 games.

One and ten. Half those losses to Atlanta all in the last eight days. Mets also had a 3-0 lead. The Braves scored five runs off three Met relievers in the sixth inning. Went on to win 7-4. Red Sox lost to the Angels 3-2, 10 innings. The Nationals lost in San Diego 4-3. Tonight in Brooklyn, it's the first round of the NBA draft. Dallas has the first pick. We'll clearly take the 18-year-old Duke Phenom Cooper flag. The Nets already had four first rounders and then just made a trade to add a fifth.

Part of a three-team trade with the Celtics and Hawks, Christoph Porzingis is headed to Atlanta. Wizards and Pelicans swung a deal. C.J. McCollum's going to Washington. Jordan Poole to New Orleans. The Knicks do not have a first-round pick or a coach. They're interviewing Minnesota assistant Mika Norrie. John Staschauer, Bloomberg Sports.

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. Primary election day is in the books in New York City. And when it comes to the mayor's race, it appears to be a generational shift.

I will be your Democratic nominee for the mayor of New York City. 33-year-old State Assemblyman Zoran Mamdani declaring victory last night in the Democratic race for mayor, beating 67-year-old former Governor Andrew Cuomo by more than seven percentage points in the first round of ranked choice voting. Joining us this morning after Bloomberg Television managing editor Miles Miller.

Miles, good morning. We had spoken just yesterday thinking we might not get a declared winner for days, but apparently this plurality of votes for Mamdani was too much for Cuomo and the rest. Good morning. Good morning to you. Yeah, you know, I think this was the real strategy behind Mamdani linking arms with other candidates and making sure that people cross endorsed.

and making sure that other people ranked him on their ballot. Say he wasn't their first choice, maybe he was their second, and this really worked. Imam Dhani is a 33-year-old Democratic Socialist Assembly member from Queens, and he's now on track to become the Democratic nominee for mayor. He won 43.5% of the first choice votes to Andrew Cuomo's 36.3%. And while we're still waiting for the final ranked choice results, which will be released on July 1st,

You know, Cuomo conceded last night to this primary, which tells you everything you need to know about how this is really going to end. Mamdani pulled this off with a combination of message, movement, and method. He ran on affordability, freezing rents, free buses, city-owned grocery stores, and connected with young voters, immigrant communities, and the city's growing progressive base. His campaign had 50,000 volunteers. Nathan, I'll tell you this.

You know, there was a day that I went with my wife and son and my brother-in-law and his kids to, you know, a local bar in Brooklyn. And there were people there doing outreach for Mondani. And this was months before the primary. And that told me what I needed to know, which was that he had already created this big coalition.

But I mean, you got to talk about just how a few weeks ago, Mamdani was essentially an unknown in this really crowded field. How do you explain this surge for him? Yeah, at one point he was polling at 1%.

But the surge was helped by, you know, the support he had from top Democrats, specifically top progressive Democrats. You're talking about him being endorsed by AOC, Bernie Sanders, and then him also getting some support from Democratic establishment candidates. That cross endorsement with the Working Families Party, where Tish James stood on that stage with the person she primarily endorsed and said, rank this slate, that

played a big role. But there is also a push in New York City for folks to have affordability. They did not feel that Andrew Cuomo's comeback would get them to that place.

Cuomo had money, $25 million in Super PAC money, but he was extremely negative in his ads. There were some ads that really, uh, was stoked at fears of New Yorkers. Um, there was a push to call Mamdani a, um, an anti-Semite, uh,

when he's always said, you know, for years and for the months of this campaign that, you know, he is not an anti-Semite. He just is pro-Palestine. And he does want to work with Jewish New Yorkers and have a New York that makes them feel safe. But he offered something different, urgency, optimism, and a break from the old guard. And Cuomo still carried the weight of unresolved scandals, his resignation, the nursing home deaths,

allegations of sexual harassment and questions about transparency during COVID. And it's clear that voters didn't forget. They said, let's go with this new guy, even though he's only passed three bills in the legislature, even though he only has a staff of five. Let's see if this is a guy who would get us forward. But of course, it's not over yet.

To that point, Miles, we had heard Cuomo during the campaign even saying that if he were to lose last night, that he would consider running as an independent. Last night, we heard him say that he's going to reassess the ranked choice voting. And he's given an interview to The New York Times that's that's raising some doubts as well. Where does this leave Governor Cuomo heading into November?

Yeah. So, you know, I've been covering this story with Laura Namias, who's our senior reporter covering New York. And we talked about this a couple of days ago. You know, is Cuomo too embarrassed to have, you know, on July 1st, if he's if he's truly lost a Democratic primary?

Is he too embarrassed to run on that independent line because he didn't get the support of Democrats? And this is a guy who has been an establishment Democrat over the last 30 years. He's on the independent line, but last night he signaled that he might not use it. He told reporters last night, "Tonight was not our night." Does that mean that it's not our night? Is it a firm no?

We don't know. It's a big shift from the assumption that he was going to keep going no matter what. But this now tells me that this is going to be a race between Eric Adams, who is still mayor, and Zoram Mamdani. Adams, of course, skipped a Democratic primary entirely, planning to run on that stop anti-Semitism line. It gives him a second shot, and he's politically vulnerable, uh,

But can he have the groundswell of support in the black community that Cuomo took away? Can he have the groundswell of support from Republicans who seem to like what he's done? And so this could be a two way race. I think what will happen is that they'll find a way to push Curtis Lewa off the ballot and give Adams that Republican line. And then will those center right Democrats vote?

Caribbean folks, the people I grew up with who may not know Mamdani go for the name they know, which is Eric Adams. So that is where I think this will go. Thanks for this, Miles. Comprehensive coverage this morning after Bloomberg Television managing editor

Miles Miller with us. Now we want to turn to the latest from the Middle East and an initial report on the damage from last weekend's bunker buster attack in Iran from the Pentagon's intelligence arm, suggesting that the U.S. airstrikes may have set Iran's nuclear program back by just a few months. President Trump, though, is disputing that. The last thing they want to do is enrich anything right now. They want to recover. And we won't let that happen. Number one, militarily, we won't.

President Trump spoke at the NATO Leaders Summit in The Hague, as heard live on Bloomberg Radio, repeating his assertion that Iran's nuclear program was totally obliterated last weekend. For more, we're joined by Bloomberg News Senior Editor Bill Ferrys. Bill, good morning. What do we know about what this initial Pentagon assessment actually says? Good morning.

Good morning, Nathan. So, yes, there's this initial assessment out from the Pentagon's Defense Intelligence Agency, and it basically says that that surprise bombing attack by those B-2s over the weekend likely did not cripple

Iran's nuclear program that were buried deep underground. Now, it's clear the entrances have been completely destroyed and covered up, but their initial assessment is that deep down, those centrifuges may still be there, but

Iran may be able to be able to dig through the rubble and get back down into those areas. So obviously, that would be a very disappointing outcome for the U.S. President Trump authorized this extremely risky mission with these stealth bombers flying 37 hours around the world.

to make this, to bomb those sites. And there's still a lot more information that will probably come out, a lot more intelligence assessments that need to be done. But the president and his aides pushing back already on this defense, this Pentagon Intelligence Agency report saying that

that it's clear to them that the sites were destroyed and that Iran's nuclear program is stopped. And to that point, Defense Secretary Pete Hegseth also at the NATO summit saying that the report was preliminary and low confidence, saying that the leak of this assessment is going to be investigated. How is the effort going to get U.N. nuclear inspectors back in the region now that a ceasefire is in effect?

Well, that's the priority for the International Atomic Energy Agency. They have said that they think the atomic program has been set back significantly, but they wouldn't say whether that means months or years. They want to get in as soon as possible to see what is the status of that enriched uranium. Is it still at one of those sites that got bombed, or can they figure out whether it got moved in the days or weeks before the attack?

The IAEA's priority is just to get boots on the ground, basically, and start seeing what they can learn about the status of that program. Yeah, and I guess it can't really be disputed that Iran is on a back foot following all these developments. What can we expect when it comes to the possibility of further talks around the nuclear program between Iran and the U.S.?

Well, it does seem that, you know, both Iran and Israel were ready to de-escalate at some level. They did both agree to that, at least that temporary ceasefire. It had a rough start, but it seems to be holding. That may bode well for Iran's willingness to sit down again with the U.S. in Oman, you know, maybe through mediators, but start talking about, you know, what they can do to scale back their nuclear program.

You know, those are still going to be difficult negotiations, but it does seem the fact that the ceasefire is holding probably is good news for the negotiating teams. 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.

Career changers, including veterans and active duty service members. Your transition starts here. Go from GI to IT in a matter of months. Become a certified cyber warrior with training at My Computer Career. Cyber security specialists are in high demand, offering IT pros great opportunities and a rewarding lifestyle while protecting our people, liberty, and treasured institutions from cyber threats.

Deploy your career in IT today. Learn more at mycomputercareer.edu. SkillBridge and other VA benefits are available to those who qualify. The data that matters for your investments. The entire auto sector is higher today. And analysis on the companies making news on Wall Street. Tesla's been a stock that's been in focus. Shares have really been all over the map this morning. Listen to the Stock Movers Report from Bloomberg. Let's talk.

This is an iHeart Podcast.