Trump Dismisses Iran Aid Concerns; Houthis Continue Saudi Attacks

0:02 Bloomberg Audio Studios.

0:04 Podcasts.

0:05 Radio.

0:06 News.

0:10 Good morning, I'm Nathan Hager.

0:11 And I'm Karen Moscow. Here are the stories we're following today.

0:15 Karen, we begin with the latest from the Middle East.

0:17 President Trump is dismissing concerns that Russia and China might be helping Iran in its war with the U.S. In a late-night Truth Social post, the president said both countries would have too much to lose if they were helping, and the president continues to argue an end to the conflict is around the corner.

0:33 It's going to end very soon, and as soon as it ends, your gasoline comes down. But remember, your prices, your gas prices, are lower than when Biden was president, and he didn't do anything about Iran, the Islamic Republic of Iran.

0:48 That was President Trump at a rally last night in Youngstown, Ohio. China and Russia have kept close ties with Iran for decades, but both deny providing military assistance. The Wall Street Journal has reported, however, that Chinese entities shipped components for Iranian drones and missiles. And Bloomberg News has reported that Western allies believe Iran restocked with Russian weapons during the ceasefire with the U.S.

1:09 Over the summer.

1:10 Well, Nathan, President Trump's deal with Russia to bring more of its diesel to the global market is sparking a backlash from nearly all sides. We spoke with Poland's foreign minister, Władysław Sikorski.

1:21 We appreciate President Trump's involvement in trying to end the Russia-Ukraine war, but in Poland we believe that it will bear fruit if you put pressure on the aggressor and not on the victim of aggression.

1:36 Polish Foreign Minister Radoslaw Sikorski spoke to Bloomberg from the Warsaw Security Forum, and in Washington, a bipartisan group of senators is calling on President Trump to reverse course. Democratic Senator Peter Welch says it's wrong to blame Ukraine for the rise in diesel prices.

1:52 The connection that he's trying to make that it's Ukraine's fault, it's President Trump's fault with his unilateral decision to go to war with Iran, resulting in the closure of the Strait of Hormuz.

2:03 Vermont Democrat Peter Welch spoke to ABC News. And even if Russian diesel reaches the market in coming weeks, the first release of two and a quarter million barrels is more than a million less than Americans consumers have used in a single day.

2:18 Well, Karen, a barrage of drone and missile attacks on Saudi Arabia has intensified pressure on President Trump to step up efforts to help the kingdom battle Iran-backed Houthi militants in neighboring Yemen. Bloomberg News has learned Riyadh is now looking to the U.S. and other allies for support. Here's Bloomberg National Security Editor Ian Marlowe.

2:35 It's getting really bad.

2:36 And I think this is, for Saudi in particular, this is the worst we've seen throughout the whole Iran war in terms of the fallout. And now we have a proxy group in Yemen. And I think we're seeing something that... could push the U.S. to potentially get increasingly bogged down.

2:54 Bloomberg National Security Editor Ian Marlowe says the U.S. is already assisting Saudi Arabia with intelligence targeting an aerial refueling, but has so far resisted direct involvement.

3:04 Nathan, former U.K.

3:05 Prime Minister Rishi Sunak says President Trump is a symptom of a breakdown in the global order. Sunak made the comments on the first day of Bloomberg's New Economy Forum in New Delhi.

3:16 I think we all grew up investing in, operating in a multilateral, rules-based framework, largely enforced by U.S. unipolar strengths. And that is over. President Trump is not a cause of that. He's a symptom of that. And the world that we're in now is one where we don't quite know what we've settled down to. And that creates an enormous amount of geopolitical uncertainty and indeed danger.

3:42 And you can catch our entire conversation with former UK Prime Minister Rishi Sunak in all of our interviews from the Bloomberg New Economy Forum in New Delhi on Bloomberg.com and the Bloomberg Business App.

3:53 Well, back in this country, Karen, the Trump administration appears to be escalating its scrutiny of one of Congress's most outspoken progressives. Federal agents searched Minnesota Democrat Ilhan Omar's Washington area home yesterday. Officials didn't give details, but the administration has said it's investigating Omar's immigration history. President Trump went after the congresswoman in his Youngstown rally last night.

4:15 She comes into our country and she says, I have a constitutional right. She's got a constitutional right. She's telling us about the Constitution. And she comes from one of the worst countries anywhere on the planet.

4:29 President Trump again in Youngstown, Ohio, last night. Omar fled Somalia's civil war with her family when she was eight years old and settled in Minneapolis in 1997. Her spokesperson released a statement saying she has done nothing wrong and calling the raid a, quote, outrageous abuse of power.

4:44 We turn to the markets now, Nathan, where a global slide in ship stocks is deepening this morning. And we have the latest at Bloomberg's John Tucker. John, good morning.

4:53 Good morning, Karen. Artificial intelligence has been the hottest trade in equities, driving gains of about 120% of the S & P 500 during a four-year bull run. But some of the enthusiasm around AI is fading. A route in Samsung and SK Hynix pulling Asia's benchmark index to its lowest level since August overnight. William Hobbs at Brooks McDonald Asset Management says there is definitely a casino element to all this.

5:20 My hunch is that there is something real to this new technology, our hunches, but that you've got to be quite careful about how you trade it.

5:30 Well, the head of Broadcom, Meantime, said many AI investors have little understanding of what it is they're betting on. In New York, I'm John Tucker, Bloomberg Radio.

5:38 All right, John, thank you.

5:40 And according to a new poll from Bank of America, global investors chasing the AI-powered equity rally are the most exposed to tech stocks since the rebound from the COVID pandemic six years ago. The proportion of fund managers who are overweight the tech sector has risen to 37% from 30% last month. About 45% of respondents to this poll agreed there will be an AI bubble in 2027.

6:01 42% said there won't.

6:07 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.

6:14 Good morning, Karen. Actor Selma Blair has been arrested after she was accused of injuring two flight attendants on a trip from Los Angeles to New York. She has also been charged with two counts of assault for allegedly kicking a police officer and a nurse after the flight. Authorities said that Blair was detained after the Delta Airlines jet landed in New York. A Blair representative says that the actor had a medical emergency that led to the alleged conduct upon landing. She received immediate medical attention and is currently in stable condition. Six Flags says it has shut down some of its roller coasters across the country after police say a man was killed after being thrown from one of its biggest rides. Witnesses say they were on

6:56 the Goliath roller coaster at Six Flags over Georgia yesterday when the man fell.

6:59 A man slips out of his seat and he turns sideways and he's flipping in the air. He comes down, he slams down on our cart.

7:09 The coaster is more than 250 feet high and can hit 85 miles per hour. A former Fox News host could soon be out of a job in the Trump administration. Here's Bloomberg's Matt Piper.

7:20 President Trump says his administration is scrutinizing U.S. Ambassador to Greece Kimberly Guilfoyle following allegations of unethical conduct. He said Monday that he's not happy. The Wall Street Journal reported that Guilfoyle solicited or accepted money or other benefits from private individuals while offering to use her influence in connections with administration officials. In one instance, the Journal reported that Guilfoyle had asked a longtime Trump donor for $ 100, 000 to help pay off an American Express credit card bill. Matt Piper, Bloomberg Radio.

7:50 The Vatican said Pope Leo will be admitted to the hospital today ahead of surgery to remove a lung nodule. The surgery will require a week-long recovery in the hospital. Global news 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Karen.

8:07 Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Staschauer.

8:12 Thanks, Karen.

8:13 The two-time defending World Series champion Dodgers are in trouble. They lost Game 2 in Milwaukee 7-4. The NLCS is 2-0 Brewers heading to L.A. Game 1 of the ALCS in Cleveland hits solo home runs in the 6th and 7th innings. Got two in the eighth, three more in the ninth. They've won 7-3 at Tampa Bay. Monday Night Football went to overtime in L.A. And in the overtime, there was a fumble and a blocked field goal. Buffalo kicked a field goal. The Bills beat the Rams 37-34.

8:38 That's your Bloomberg Sports Update.

8:43 Stay with us.

8:43 More from Bloomberg Daybreak coming up after this.

8:50 Coast to coast on Bloomberg Radio. Nationwide on Sirius XM.

8:55 And around the world on Bloomberg.com and the Bloomberg Business App.

8:59 This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. Now more than seven months into the U.S.

9:04 War with Iran, President Trump is downplaying the idea of Russia or China taking a direct role in the conflict. It says the president faces pressure to get more directly involved. in Saudi Arabia's fight with the Houthis as that conflict intensifies. Joining us for more is Bloomberg DC breaking news editor Alexander Pearson.

9:22 Alex, it's great to speak with you this morning.

9:23 I'm sure you saw the Truth Social post overnight where President Trump seemed to downplay the idea of China or Russia having a direct role in the Iranian conflict.

9:33 What do you make of it?

9:34 What do we know about the assistance that those countries could be providing Iran?

9:38 Good morning.

9:39 Good morning, Nathan. Yes, President Trump made that announcement through social, saying he would know if they were providing a lot of support to the countries, and he didn't believe that was the case. It's a rather curious announcement, given that there's been a lot of media reporting, also by Bloomberg over the past few months, detailing how actually those two countries have provided support. to Iran. So in China's case, it's reportedly sent over components that have been used in drones and missiles. In Russia's case, there have been Russian-made missiles that have ended up in Iran's arsenal, also during the conflict, according.

10:16 To Western allies.

10:17 So there very much does seem to be, or at least reportedly there is, this support, and Trump is very much downplaying that. And that certainly seems to be part of a sort of a strategy to not anger China and not anger Russia at a relatively sensitive point in time for his administration ahead of the midterms.

10:35 A sensitive point in time where the president, I think it's safe to say, has been really trying to argue that the war is going to end quickly. He continues to say that on the campaign trail as well. And he's been talking about this decision mode he's in on whether to escalate attacks on Iran either before or after the midterms.

10:52 Put it into that context for us.

10:55 Yeah, so Trump very much finds himself in a bit of a bind because energy prices are still high as a result of the Iran war and also because of the Ukraine-Russia war. And his administration certainly doesn't want to see that escalate any further. And that very much could be the case if the conflict with Iran were to be reignited or, as you mentioned at the beginning of the show, that if the U.S. were to actively support Saudi Arabia against the Iranian-backed Houthis, So on the one hand, they very much realize this. On the other hand, they want the war to end. They want it to end soon so that a permanent kind of relief can occur for oil prices and also to support allies like Saudi Arabia in that region. The problem is they just don't

11:37 want this to happen before the midterms. And a lot of the reporting over the past few weeks has indicated that the administration, if it is going to try to get involved again in active military conflict with Iran would do so after the midterms to avoid any kind of upward pressure on oil prices from an already very elevated level.

11:53 Well, can we see further pressure, though, on the president to get more directly involved in this Saudi conflict with the Houthis when we've seen these deadly strikes over the weekend on Saudi Arabia's airports, and as they're hosting all these global conferences this month, and at least one American was killed in these attacks as well.

12:11 We have about a minute left.

12:12 Certainly, he is under pressure. Saudi Arabia is one of the staunchest allies of the U.S. in that region, opposing Iran. It's obviously a key energy ally. And President Trump will be under pressure to provide some kind of support.

12:26 Now, the U.S.

12:26 Already provides some intelligence sharing with Saudi Arabia in its fight against the Houthis, but it hasn't really gotten involved very actively. There's actually a ceasefire between the U.S. and the Houthis right now. And so that would be at stake if the president was to get involved. But certainly there is going to be internally some pressure to do so, despite the fact that if they were to escalate, it would cause fallout for the U.S. economy as well, potentially through higher oil prices.

12:56 This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

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