Bloomberg Daybreak: US Edition

Today's top stories, with context, in just 15 minutes.

On today's podcast:
1) The US and Iran traded messages over the weekend seeking changes to a draft agreement that would extend a ceasefire and open the Strait of Hormuz, but it was unclear whether the sides were making much progress. As the diplomatic exchanges continued, Israel expanded its ground assault in Lebanon, shattering a brittle truce with its northern neighbor. President Trump said his proposed deal states clearly “that Iran will not have a Nuclear Weapon,” according to a post on Truth Social. Trump hadn’t spoken on the subject of Iran since a White House Situation Room meeting Friday in which he said he expected to announce an agreement. In a social media post earlier that day, he reiterated his demands, including that Iran suspend its nuclear program and fully restore the strait to its earlier status as a free, international waterway. The semi-official Tasnim news agency, which has close ties to the Islamic Revolutionary Guard Corps, said Sunday that both sides continued to propose amendments, but noted that the US and Iran could ultimately reject the changes, causing the deal to collapse.
2) Oil rose from a six-week low amid uncertainty over the outlook for a peace deal to end the war in Iran. Brent advanced to around $93 a barrel after closing at its lowest since mid-April on Friday, while West Texas Intermediate rose to near $90. The US and Iran traded messages over the weekend seeking changes to a draft agreement that would extend a ceasefire and open the Strait of Hormuz, but it was unclear if the sides were making much progress. The standoff follows a bout of optimism that some form of peace agreement would be reached — and that energy flows would resume through the Strait of Hormuz — that had caused the first monthly drop in crude prices this year. Brent is still up more than a quarter since the war started at the end of February, as the near-total closure of the vital waterway causes unprecedented turmoil in oil markets.
3) Nvidia is entering the personal computer market with a new chip aimed at loosening Intel’s long-standing stranglehold on the sector and modernizing machines for the artificial intelligence era. Starting this fall, the new RTX Spark Superchip will debut in premium laptop and desktop computers from leading brands, including Dell and Lenovo, Chief Executive Officer Jensen Huang announced during a keynote speech at the Computex trade show in Taiwan. Huang also announced that next-generation Vera central processing units will enter full production in the third quarter of this year, marking the company's first standalone data center microprocessor.
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Bloomberg Daybreak Weekend with Host Nathan Hager take a look at some of the stories we'll be tracking in the coming week.
In the US – a look ahead to the May jobs report, along with a focus on three stocks for the week ahead.
In the UK – a look ahead to what comes next in the Ukraine war following fresh EU funds to Ukraine.
In Asia – a look ahead to Australia GDP data.
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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) The US and Iran have reached a preliminary deal to extend a ceasefire by 60 days and discuss the future of Tehran’s nuclear program, according to a person with knowledge of the matter. Vice President JD Vance said the US and Iran are “going back and forth on a couple of language points,” including over issues relating to Tehran’s nuclear capabilities, and that Iran appears to be negotiating in good faith. The US Treasury Secretary reiterated President Trump’s three “red lines” — reopening the Strait of Hormuz, Iran surrendering highly enriched uranium and ending its nuclear program — remain in place.
2) Dell shares soared in extended trading after the company gave an outlook for annual sales that far surpassed analysts’ estimates. Revenue in the fiscal year ending in January 2027 will be about $167 billion, including $60 billion from the sale of AI servers, according to the company. Dell’s server business has been viewed as an AI winner this year, sparking the stock more than 150% higher through Thursday’s close.
3) Anthropic PBC raised $65 billion in a funding round that valued the artificial intelligence company at $965 billion including the new investment. The funding was led by Altimeter Capital, Dragoneer, Greenoaks and Sequoia Capital, with each of the lead investors putting in more than $2 billion. Alphabet Inc.'s Google and Amazon.com Inc. also invested in the round, with Google contributing several billion dollars and Amazon investing $5 billion.
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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) The US struck Iranian military targets for the second time this week and Kuwait said it responded to missile and drone threats, highlighting the fragility of the ceasefire. US forces shot down Iranian drones fired at a commercial ship and hit a launch unit near the Strait of Hormuz, according to a US official, who said the attacks were defensive and the ceasefire remains intact. President Trump asserted that no one nation would control Hormuz, which has emerged as one of the key obstacles in resolving the conflict, and said the strait's going to be open to everybody.
2) Federal Reserve Vice Chair Philip Jefferson said he expects inflation to cool later this year as the effects of tariffs and higher energy costs wear off, though he warned inflationary risks remain tilted to the upside. In the text of a speech he’s scheduled to deliver Thursday morning in Tokyo at a conference hosted by the Bank of Japan, Jefferson said he is watching for signs that higher energy costs stemming from the Iran war are dragging on consumer spending. He also cautioned that he continues to see signs of labor market weakness. Jefferson repeated his view that the central bank’s current policy setting is well positioned to respond to any developments.
3) Salesforce gave a revenue outlook for the current period that just fell short of analysts' estimates, with revenue expected to be about $11.3 billion in the fiscal second quarter. The company reported fiscal first-quarter remaining performance obligations of $67.9 billion, compared with analysts' average estimate of $68.9 billion, and its stock has declined about 33% this year.
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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) Texas Attorney General Ken Paxton won the state's Republican Senate runoff, defeating incumbent John Cornyn with approximately 63% of the vote. Paxton will face Democrat James Talarico in the November election, and Talarico has released a video focusing on Paxton's 2023 impeachment by the Texas House of Representatives. Republican leaders in Washington will have to decide how much to spend to back Paxton, who has significant baggage, including a history of scandal, to ensure the Texas seat stays in GOP hands.
2) There is some optimism that the US and Iran will reach a peace deal despite fresh hostilities and uncertainty over the vital Strait of Hormuz. The strait remains essentially shut, subject to blockades by the US and Iran, but at least two non-Iranian supertankers exited the chokepoint on Tuesday. Secretary of State Marco Rubio has cautioned that any peace pact would likely take a few days to finalize. Meanwhile, US forces hit targets near the strait, while the Islamic Revolutionary Guard Corps said it fired at multiple US aircraft after they entered Iranian airspace.
3) Strategists at Goldman Sachs Group Inc. joined peers at Morgan Stanley and Deutsche Bank AG in seeing a 17% return for the S&P 500 Index this year. Earnings growth powered by the AI boom will drive further gains in stocks, the Goldman team led by Ben Snider said as they increased their year-end target for the US benchmark to 8,000 points, ditching a previous forecast of 7,600.
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