Episode summary
Trump Reverts to Economic Squeeze of Iran; Colombia Quake Toll Tops 260 | Bloomberg Daybreak: US...
Bloomberg Daybreak: US Edition
· · 16 min · Guests: Trump, Abelardo de la Espriella, Mark Walter
Summary
The morning centered on the Trump administration’s shift back to economic pressure on Iran after military threats and an unresolved stalemate in the war. Bloomberg’s reporting said the strategy now leans on sanctions and a naval blockade to choke off oil exports, while a guest from Dubai said the pressure is already feeding inflation and a weaker currency inside Iran but is unlikely to produce a quick political break or meaningful movement in the talks. He also warned that a prolonged blockade could hurt gasoline prices in the US and wider global markets.
Markets were wrestling with the consequences of that conflict and with heavier US borrowing costs. Treasury yields climbed, with a benchmark 10-year sale reaching its highest yield since 2007, and investors looked ahead to a 30-year auction expected to carry the highest rate in 25 years. At the same time, Ed Yardeni said he expects a September rate hike but still sees equities continuing to rally, even as the S&P 500 target was raised to 8400.
The show also tracked a deadly earthquake in Colombia, where the toll rose to 265, and several company and market developments, including Anthropic’s reported talks to buy Dart AI for about $6 billion and a bid for the Los Angeles Lakers at $12.5 billion. The Lakers deal, if completed, would be the highest price ever for a sports team.
Key takeaways
- The host and Bloomberg’s Middle East managing editor said Trump’s renewed pressure on Iran is hurting the economy, but not yet forcing a political shift or breakthrough in talks.
- The guest said a prolonged US blockade could eventually feed back into the US through higher gasoline prices and strain on strategic petroleum reserves.
- Treasury borrowing costs rose sharply, with the 10-year auction producing the highest yield since 2007 and the 30-year sale expected to test the market further.
- Ed Yardeni said he expects a September rate hike but still thinks stocks can keep rising, and he lifted his year-end S&P 500 target to 8400.
- The death toll from Colombia’s earthquake climbed to 265, with nearly 3,500 injured and 500 missing, according to the report.
- Anthropic is said to be in talks to buy Dart AI for about $6 billion, while the Lakers were reportedly offered for $12.5 billion, a record sports-team valuation.
Notable quotes
“President Trump is reverting to economic pressure as the two sides remain in a stalemate”
“there's very little sign that Iran is going to give up the leverage it has when it comes to the waterway”
“I think the markets are expecting a September rate hike. And uh look, I I think the bond market would react positively to it”
“The death toll has risen to 265. Nearly 3,500 were injured. 500 are still missing”
“The deal, if completed, would mark Anthropic's largest known acquisition ahead of a hotly anticipated initial public offering”
How the episode opens
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 the war in Iran. President Trump is reverting to economic pressure as the two sides remain in a stalemate. It is a marked reversal from the president's recent military threats against the Islamic Republic. Bloomberg, Washington correspondent Tyler Kendall says the war is still a long way from resolution.
It's very evident that both sides are trying to dig into their positions when it comes to the straight of Hermuz. But there's very little sign that Iran is going to give up the leverage it has when it comes to the waterway. Not just in terms of its grip on shipping in Hermuz, but also importantly, we should point out the other disruptions to global shipping as Yemen's government confirmed that at least six people died in a Houthi attack in the Red Sea, marking the first such fatalities of a Houthi attack since this specific conflict has started.
And Bloomberg's Tyler Kendall adds the Trump administration's relying on a steady increase in sanctions and its naval blockade to stifle Iran's oil exports. A White House official says the strategy has left Iran completely broke and it comes as Iran is reorganizing its military to be more aggressive abroad. It's a sign Thrron is preparing for a protracted era of regional conflict.
Well, Nathan, oil is falling this morning. Brent is coming off a 6-day advance as traders await signs of progress on a reopening of the Straight of Hormuz. President Trump claims to have total control over the waterway while Iran says users should remediate any local environmental harm. Checking prices right now. NX crude oil down 1.9% at $8166 a barrel.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- iran sanctions
- naval blockade
- colombia earthquake
- economic emergency
- loan repayment strategy
Companies and tickers mentioned
- TWG Global
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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