Oil Drops as Trump Signals Possible End to Iran War | Bloomberg Brief 3/10/2026

>> IT IS 5:00 A.M. IN NEW YORK CITY.

I'M JULIE FINE, IN FOR VONNIE QUINN, WITH YOUR "BLOOMBERG BRIEF." STOCK RECOVERY LOSING STEAM.

BRIEF." STOCK RECOVERY LOSING STEAM.

OIL SLIDES AFTER A'S -- A DIZZYING START TO THE WEEK.

THIS AFTER PRESIDENT TRUMP PREDICTS THE IRAN WAR WOULD RESOLVE VERY SOON.

GULF NATIONS AGREED TO DEEPEN ALL PRODUCTION CUTS AS TRAFFIC IN THE STATE -- STRAIT OF HORMUZ REMAINS -- KRISTINE: AN ACROSS-THE-BOARD RALLY FOR FUTURES. NASDAQ FUTURES OF 0.3%. A LOT OF THOSE TECH NAMES HAVE

FUTURES. NASDAQ FUTURES OF 0.3%. A LOT OF THOSE TECH NAMES HAVE BEEN UNDER PRESSURE OVER THE LAST WEEK, RALLYING TODAY, WRESTLE FUTURES ALSO UP, ABOUT 0.1%.

LET'S TAKE A LOOK AT THE BOND MARKET, GOING THE OTHER WAY.

YIELDS ARE NOW DOWN AS THE INFLATION PRESSURES FROM THE IRAN WAR EASING A BIT AFTER THE CLIMB DOWN FROM PRESIDENT TRUMP OVERNIGHT.

LET'S TAKE A LOOK AT THE ENERGY COMPLEX.

WE ARE SEEING A CLIMB DOWN THERE ARE SOME SIGNS OF THE ESCALATION EMERGE FROM THE IRAN CONFLICT.

CRUDE ACROSS THE BOARD LOWER, DOWN OR SO FOR BRENT, TREATING AT $92 A BARREL.

I GOT OVER $100 YESTERDAY.

AS A RESULT, THE BLOOMBERG U.S. DOLLAR INDEX DOWN. JULIE:

NOW FOR SOME STOCKS TO WATCH WITH ABEER ABU OMAR. ABEER:

LET'S START WITH TSMC AND SANDISK.

TSMC REPORTED SOME NUMBERS AND IS ABOUT 30% HIGHER WHEN IT COMES TO SALES OVER THE PAST TWO MONTHS, BEFORE THE EVENTS HAPPEN IN THE MIDDLE EAST.

SANDISK IS ONE OF THE STOCKS BENEFITING ON THAT NEWS.

TSMC PROVIDES CHIPS TO THE LIKES OF NVIDIA, AMD, AND BROADCOM, SO THAT IS GOOD NEWS FOR THE HARDWARE, DISCOUNTING THE PAST COUPLE DAYS ON MIDEAST TENSIONS. WE FLIPPED THE BOARD TO ANOTHER

TENSIONS. WE FLIPPED THE BOARD TO ANOTHER INDUSTRY.

STRATEGY INC. IS BENEFITING FROM THE GAINS WE HAVE SEEN IN BITCOIN, WHICH IS ABOVE $70,000 TODAY.

IT'S ACTUALLY DOUBLED DOWN ON BITCOIN, BUYING ABOUT $1 BILLION IN BITCOIN YESTERDAY. THAT IS REFLECTED, AND INVESTORS ARE LOOKING FAVORABLY AT THAT.

AND ON THE BACK OF THE MIDEAST TENSIONS, WE LOOK AT SOME OF THE OIL MAJORS. YESTERDAY WAS A GOOD DAY FOR THEM. TODAY, ALL OF THEM ARE GOING

THEM. TODAY, ALL OF THEM ARE GOING DOWN IN PREMARKET TRADING. THAT IS ON THE BACK OF BRENT PULLING BACK FROM THE GAINS WE SAW YESTERDAY, ABOUT $93 A BARREL NOW ON WHAT IS HAPPENING IN THE MIDDLE EAST AND PRESIDENT TRUMP'S COMMENTS ON EASING THE WAR. JULIE: THANKS.

COMING UP, FORMER ISRAELI PRIME MINISTER NAFTALI BENNETT JOINS US.

AND LATER, WE WILL DISCUSS WITH WEI LI OF BLACKROCK.

FIRST, PRESIDENT TRUMP -- >> ON IRAN, CALLED IT AN EXCURSION.

YOU SAID IT WOULD BE OVER SOON. DO YOU THINK BY THIS WEEK IT WOULD BE OVER?

>> VERY SOON. EVERYTHING THEY HAVE IS GONE, INCLUDING THEIR LEADERSHIP. IN FACT, THERE ARE TWO LEVELS OF LEADERSHIP, AND AS IT TURNS OUT, MORE THAN THAT, BUT TWO LEVELS OF LEADERSHIP ARE GONE. JULIE:

OIL CONTINUING TO FALL AS GULF COUNTRIES DEFEND THEIR OIL OUTPUT CUTS WITH THE STRAIT OF HORMUZ STILL NEAR SHOT.

LET'S GO TO TEAM COVERAGE WITH BLOOMBERG EMEA NEWS EDITOR WILL KENNEDY -- WILL, GIVE US THE LATEST ON THESE PRODUCTION CUTS. WILL:

WHAT THESE PRODUCTION CUTS SHOWS IS, DESPITE PRESIDENT TRUMP'S WORDS, WITH THE START STILL CLOSED, THE COST OF OIL PRODUCTION CONTINUES TO MOUNT. TANKERS CAN'T LOAD, CAN'T GET OUT OF THE STRAIT OF HORMUZ, SO THAT OIL HAS NOWHERE TO GO AND

HAS TO STAY IN THE GROUND. THE MARKET IS MORE OPTIMISTIC ABOUT THE OUTLOOK AFTER TRUMP’'S WORDS LAST NIGHT, BUT UNTIL SHIPS START MOVING, THE IMPLICATIONS, THE IMPACT FOR THE OIL INDUSTRY AND OIL MARKET WILL CONTINUE TO BUILD. JULIE:

PRESIDENT TRUMP ALSO FLOATED WAIVING SOME OIL RELATED SANCTIONS. WHAT IMPACT ARE YOU LOOKING OUT

SANCTIONS. WHAT IMPACT ARE YOU LOOKING OUT THERE? WILL: THIS WOULD FOCUS ON RUSSIA AND

THERE? WILL: THIS WOULD FOCUS ON RUSSIA AND PERHAPS EVEN IRAN, DOWN THE LINE.

THOSE TWO COUNTRIES ARE UNDER SANCTIONS.

THEIR OIL OUTPUT IS SANCTIONS. BUT IN TRUTH, MOST OF THEIR OIL HAS BEEN GETTING TO GLOBAL MARKETS, BECAUSE THEY FOUND BUYERS, PRINCIPALLY IN INDIA AND CHINA.

SO IT WILL HELP EASE THE FLOW OF OIL OUT OF THE MIDDLE EAST COME OUT OF RUSSIA, IF IT COMES TO PASS, BUT IT WILL BE MARGINAL ON THE IMPACT ON MOBILE OIL SUPPLY. JULIE:

MICA, WHAT OTHER MEASURES ARE AT WHITE HOUSE CONSIDERING?

MICA: YEAH, I THINK WHITE HOUSE OFFICIALS ARE STILL IN DEEP TALKS ABOUT WHAT EXACTLY THEY CAN DO TO TRY AND ENSURE THAT THESE PRICES DON'T RISE.

BUT THERE IS AN ALIGNMENT RIGHT NOW IN TERMS OF HOW THIS WILL IMPACT THE PRESIDENT'S STANDING AHEAD OF NOVEMBER, AND THEY ARE VERY COGNIZANT, AS WE JUST HEARD THE PRESIDENT'S BECOME ABOUT OIL PRICES. I THINK THEY UNDERSTAND THAT INCREASED FOREIGN INTERVENTION CAN RUFFLE THOSE FEATHERS.

I KNOW IT WAS A AFTER VENEZUELA, BUT I THINK THEY ARE VERY CLOSELY MONITORING THE SITUATION. JULIE:

SAM, CAN YOU GIVE US THE LATEST OUT OF IRAN, WITH ALL THE CHANGES? SAM: ABSOLUTELY.

CHANGES? SAM: ABSOLUTELY.

GOOD MORNING. OBVIOUSLY A LOT MORE CONFRONTATION AND DEFIANCE FROM IRAN. ACCORDING TO IRANIAN STATE MEDIA, THE SPOKESPERSON FOR THE ISLAMIC REVOLUTIONARY GUARD CORPS, AS LONG AS THE WAR CONTINUES, NOT A SINGLE LITER OF OIL WOULD BE ALLOWED TO BE EXPORTED FROM THE REGION.

THOSE WERE HIS WORDS. YESTERDAY, WE HAD THE NAMING OF THE NEW SUPREME LEADER, AND WE HAVE HAD REACTIONS FROM THE LEADERSHIP IN IRAN ITSELF.

ALI LARIJANI SAYING THAT THE SELECTION OF THE NEW SUPREME LEADER, MOJTABA KHAMENEI, THE SON OF THE LATE ALI KHAMENEI, IS PROOF THAT WE'RE STILL HERE AND AMERICAN ISRAEL, ACCORDING TO HIS WORDS, I HAVE TRIED TO PUT US IN A DEAD END, BUT WE

HAVE BOUNCED BACK. HE HAD MORE DEFIANT COMMENTS TOWARDS PRESIDENT TRUMP, SAYING AMERICANS MUST KNOW THEY WILL HAVE TO PAY A PRICE FOR WHAT THEY DID.

WE ALSO HAVE THE FOREIGN MINISTER OF IRAN ADDRESSING GULF STATES, SAYING YOU SHOULD NOT BE COMPLAINING, BECAUSE HE SAID YOUR TERRITORIES ARE BEING USED TO ATTACK US.

THIS MORNING, HERE IN THE GULF, WE HAVE THE MINISTRY OF DEFENSE OF THE UAE ANNOUNCING IT HAS INTERCEPTED MORE IRANIAN MISSILES AND DRONES, BEING FIRED AT THE UAE.

THE SAME IN SAUDI ARABIA, SAID IT INTERCEPTED MISSILES AND DRONES BEING FIRED AT THE EASTERN PROVINCE AND AROUND AN AIRBASE OUTSIDE OF RIYADH. AND WE HAVE THE MINISTRY OF THE INTERIOR IN BAHRAIN SAYING A WOMAN WAS KILLED OVERNIGHT IN AN ATTACK ON THE CIVILIAN PART OF THE CAPITAL. JULIE:

THANKS TO BLOOMBERG'S WILL KENNEDY, SAM DAGHER, AND MICA SOELLNER. AND BLOOMBERG SPOKE TO THE

MICA SOELLNER. AND BLOOMBERG SPOKE TO THE VOLKSWAGEN CFO EARLIER TODAY AS THE CARMAKER RELEASED ITS EARNINGS.

>> IT IS OBVIOUSLY CONCERNING FOR OUR PARTNERS IN THE REGION, OUR CUSTOMERS, AND THEIR FAMILIES.

IN TERMS OF BUSINESS, SO FAR, THE EFFECTS ARE LIMITED.

IN TERMS OF ENERGY SUPPLY OF CARS AND OIL, WE NORMALLY WORK WITH LONG-TERM CONTRACTS, SO THE EFFECT IS LIMITED IN THERE.

SO FAR, WE HAVE ALSO SEEN NO MAJOR SUPPLY CONSTRAINTS. JULIE:

JOINING US NOW IS BLOOMBERG'S OLIVER CROOK.

WHAT DO YOU THINK THE EFFECT THE IRAN WAR HAVING ON SUPPLY CHAINS? OLIVER: THIS IS ONE OF THE BIG

CHAINS? OLIVER: THIS IS ONE OF THE BIG QUESTIONS WE HAVE HAD AND HAVE BEEN TRYING TO GET OUR ARMS AROUND EVER SINCE THE WAR STARTED.

WHAT WILL THE EFFECT BE ON EUROPEAN COMPANIES AS WELL AS ON INFLATION? I CAUGHT UP WITH SOME OF THE

ON INFLATION? I CAUGHT UP WITH SOME OF THE ECB GOVERNING COUNCIL MEMBERS, AND THEY SAID THEY DID NOT REALLY KNOW. SO IT WAS GOOD TO HAVE AN

REALLY KNOW. SO IT WAS GOOD TO HAVE AN OPPORTUNITY TO SPEAK TO ONE OF THE LARGEST INDUSTRIAL COMPANIES IN EUROPE. YOU HEARD IT FROM THE CHIEF FINANCIAL OFFICER OF VOLKSWAGEN, SAYING BECAUSE OF HOW THEY STRUCTURED THEIR SITUATION WITH ENERGY, THEY HAVE LONG-TERM SUPPLIES, LONG-TERM CONTRACTS, THAT THE SHOCK OF INCREASE WE HAVE SEEN IN GAS PRICES WILL NOT HAVE AN

IMMEDIATE EFFECT ON THEIR EARNINGS.

THAT SAID, THOSE ARE SOME OF THE UPSTREAM CONCERNS.

THERE ARE ALSO QUESTIONS ABOUT COMMODITIES, FOR EXAMPLE BEING ABLE TO GET THE ALUMINUM SUPPLY , GETTING CARS ON SHIPS, BUT FOR THE TIME BEING, THEY ARE NOT TERRIBLY AFFECTED BY IT. BUT IF IT WERE TO BE PROLONGED,

HE IS CONCERNED THE INPUT COST COULD GO UP.

AND THERE IS A QUESTION A QUESTION THE CONSUMER SENTIMENT.

IF THERE IS HIGHER CONCERN IN EUROPE, WILL YOU REALLY GO AND BUY A CAR? JULIE: I AM CURIOUS WHAT ALL STUCK OUT TO YOU ABOUT THE EARNINGS. OLIVER:

IF YOU WANT TO LOOK AT THE EARNINGS FROM VOLKSWAGEN, LOOKING FOR GREEN SHOOTS IN A POSITIVE STORE ON THE GERMAN INDUSTRIAL STORY, YOU DID NOT FIND IT IN VOLKSWAGEN EARNINGS FOR 2025. WE SHOULD SAY THE OPERATING

FOR 2025. WE SHOULD SAY THE OPERATING PROFIT FOR VOLKSWAGEN IS THE LOWEST IT HAS BEEN SINCE 2016.

WE SAW MARGIN COME DOWN TO .8% FOR SELLING CARS THROUGH THE YEAR OF 2025, AGAIN, THAT IS THE LOWEST SINCE 2015.

THAT SAID, THEY TOOK OFF A LOT OF ONE OFF RIGHT OFFS IN EV.

A COUPLE OTHER STATS, THE ONLY SOLD 266 PORSCHES LAST YEAR.

THAT MEANT THEY BASICALLY MADE NO MONEY SELLING PORTION OF -- PORSCHES. THAT ILLUSTRATES THE DIFFICULT

PORSCHES. THAT ILLUSTRATES THE DIFFICULT SEE VOLKSWAGEN IS FACING, NOT ONLY IN AMERICA WITH TARIFFS, BUT ALSO IN CHINA. THAT PUTS THE QUESTION OF COST CUTS. THAT IS WHERE I ASKED THE CFO

CUTS. THAT IS WHERE I ASKED THE CFO WHERE HE WILL FIND COST CUTS.

>> YOU HAVE TO PREPARE FOR MORE INTENSE COMPETITION, SO WE HAVE TO CONTINUE TO WORK ON THE COST SIDE. REDUCE COSTS -- REDUCE COMPLEXITY AND GO FOR MORE GROUP SYNERGY.

THAT IS WHAT WE WILL FOCUS ON NEXT MONTH. OLIVER:

SO COST CUTS SQUARELY IN FOCUS FOR VOLKSWAGEN. ONE OF THE MAIN MARKETS WE SAW ACTUAL GROWTH LAST YEAR WAS EUROPE AT 5% GROWTH. THAT SAID, THE NEXT COUPLE

GROWTH. THAT SAID, THE NEXT COUPLE MONTHS, YOU WILL HAVE BYD, THE EV MAKER OF CHINA, WILL BE MAKING CARS IN EUROPE WITHIN THE TARIFF BARRIER.

AND WHEN VOLKSWAGEN AND THE WAYS IN WHICH THEY ARE TRYING TO FIND GROWTH, WE UNDERSTAND THEY WILL BE TEETHING UP WITH THE DEFENSE COMPANIES, SO VOLKSWAGEN COULD BE MAKING VEHICLES FOR THE BATTLEFIELD, ONE OF THE INDUSTRIES OUTPERFORMING IN GERMANY. JULIE: THANKS TO BLOOMBERG'S OLIVER CROOK. NOW TO OTHER TOP STORIES. THE WAR IN IRAN ITS SOME OF THE

CROOK. NOW TO OTHER TOP STORIES. THE WAR IN IRAN ITS SOME OF THE WORLD'S BIGGEST HEDGE FUNDS.

MILLENNIUM AND POINT72 LOST HUNDREDS OF MILLIONS OF DOLLARS LAST WEEK. MILLENNIUM LOST $1.5 BILLION.

LAST WEEK. MILLENNIUM LOST $1.5 BILLION.

A TOP PENTAGON OFFICIAL SEES LITTLE CHANCE OF REVIVING THE ANTHROPIC A IDEAL.

THE DEFENSE SECRETARY TOLD BLOOMBERG THAT ANTHROPIC'S LAWSUIT CHALLENGING THE DEFENSE DEPARTMENT BUT IT WOULD NOT ALTER THE PENTAGON'S DECISION.

TSMC SALES GREW, BUOYED BY THE PACE OF AI INFRASTRUCTURE CONSTRUCTION.

THE GO-TO CHIPMAKER FOR NVIDIA, AMD, AND BROADCOM SERVES AS A BAROMETER FOR THE GLOBAL AI INDUSTRY.

COMING UP, FORMER ISRAELI PRIME MINISTER NAFTALI BENNETT JOINS US. THIS IS BLOOMBERG. ♪

US. THIS IS BLOOMBERG. ♪

JULIE: THIS IS "BLOOMBERG BRIEF ."

LET'S HEAD TO THE MIDDLE EAST. BLOOMBERG'S JOUMANNA BERCETCHE WITH THE FORMER ISRAELI PRIME MINISTER, NAFTALI BENNETT.

JOUMANNA: THANK YOU. GOOD AFTERNOON, GOOD MORNING, EVERYBODY. THANK YOU FOR JOINING OUR SHOW.

EVERYBODY. THANK YOU FOR JOINING OUR SHOW.

I WILL START WITH THE NEWS OF THE DAY.

PRESIDENT TRUMP INDICATING MAY WANT TO END THE WAR "VERY, VERY SOON."

SOON." WHAT DOES THAT MEAN FOR ISRAEL'S MILITARY OBJECTIVES?

SHOULD THE U.S. DECIDE TO END THE WAR IN THE COMING DAYS, HOW WOULD ISRAEL RESPOND? FMR. P.M. BENNETT:

PRESIDENT TRUMP HAS BEEN CLEAR ABOUT THE GOALS OF THE WAR.

THE PRIMARY GOAL IS TO DISMOUNT IRAN'S NUCLEAR CAPABILITIES AND CREATE AN OPPORTUNITY FOR THE IRANIAN PEOPLE TO CHANGE THEIR OWN LIFE AND FIGHT FOR FREEDOM. JOUMANNA:

I WANT TO REITERATE THIS -- ARE WE SEEING DIVERGENT OBJECTIVES BETWEEN WHAT THE U.S. WANTS TO ACHIEVE AND WHAT ISRAEL WANTS TO ACHIEVE FROM THESE MILITARY OPERATIONS?

FMR. P.M. BENNETT: IT IS THE SAME GOAL.

THE GOAL IS TO TURN IRAN FROM A NUCLEAR AND BALLISTIC MISSILE THREAT INTO JUST A REGULAR COUNTRY THAT STOPS THREATENING ITS NEIGHBORS. BOTH THE UNITED STATES AND THE

ITS NEIGHBORS. BOTH THE UNITED STATES AND THE ISRAELI AIR FORCE HAVE WORKED OVER THE PAST 10 DAYS TO SORT OF CLIP OFF THOSE CAPABILITIES. BUT WE NEED TO ENSURE IT IS A PERMANENT CHANGE AND THAT IRAN DOES NOT GO BACK AND NUCLEARIZE

ITSELF. JOUMANNA: HOW LONG, IN YOUR OWN

ITSELF. JOUMANNA: HOW LONG, IN YOUR OWN ASSESSMENT, IS THAT GOING TO TAKE?

ARE WE TALKING DAYS OR WEEKS OR MONTHS HERE? FMR. P.M. BENNETT:

AS LONG AS IT IS NECESSARY. THE ISRAELI PEOPLE ARE PAYING MUCH OF THE PRICE, BECAUSE WE ARE THE ONES WHO ARE BEING HIT BY MISSILES AND ROCKETS , AND IN SHELTERS.

BUT WE UNDERSTAND THAT, IF WE DID NOT ACT NOW, TWO YEARS FROM NOW, WE WOULD HAVE A MONSTER SO STRONGLY WOULD NOT BE ABLE TO ACT ANYMORE.

SO WE HAVE THE PERSEVERANCE TO SEE THIS THROUGH. JOUMANNA:

IRAN'S MESSAGING HAS BEEN ONE OF DEFIANCE.

THE NOMINATION OF THE NEW SUPREME LEADER, THE SON OF THE LATE SUPREME LEADER, THEY HAVE HIT BACK, NOT JUST AT ISRAEL, BUT GULF STATES AS WELL. WE ARE SEEING MOUNTING ECONOMIC COSTS, A LOT OF DAMAGE AND DESTRUCTION TO GLOBAL ENERGY MARKETS. DID YOU UNDERESTIMATE THE

MARKETS. DID YOU UNDERESTIMATE THE ABILITY OF THE IRANIAN REGIME TO HIT BACK? FMR. P.M. BENNETT:

ON THE CONTRARY, IT PROVES PRECISELY THE POINT.

IRAN'S REGIME IS A FORMIDABLE REGIME THAT HAS BEEN WORKING ON THIS FOR 47 YEARS. THIS WAR DID NOT START 10 DAYS AGO, IT STARTED 47 YEARS AGO, WHEN IRAN DECLARED AMERICA THE "BIG SATAN" AND ISRAEL THE "SMALL SATAN" AND STARTED ITS INDUSTRY OF DEATH AND DESTRUCTION.

SO IT HAS TAKEN TIME. 47 YEARS TO DISMANTLE TAKES A FEW MORE DAYS OR WEEKS -- AS MUCH AS IS NECESSARY. JOUMANNA:

DO YOU SEE THIS AS THE FINAL WAR THAT ISRAEL IS GOING TO ENGAGE IN WITH IRAN? BECAUSE THERE WAS THE 12 DAY WAR LAST JUNE, AND HERE WE ARE IN ANOTHER SITUATION, WHERE THERE IS ANOTHER ATTEMPT TO "FINISH OFF THE JOB," AS MANY OF YOUR PE ERS HAVE SAID.

YOU SEE THIS AS THE LAST WAR? FMR. P.M. BENNETT:

WELL, WE WOULD VERY MUCH HOPE THAT THE OUTCOME OF THIS WAR IS THAT IRAN 'S REGIME DECIDES THAT THEY ARE NOT GOING TO CONTINUE ENRICHING URANIUM, THAT THEY WILL NOT CONTINUE PRODUCING MORE AND MORE BALLISTIC MISSILES, BUT ONE WAY OR ANOTHER, WE WILL ALWAYS NEED TO DEFEND OURSELVES AGAINST

LOOMING THREATS. JOUMANNA: YOU HAVE SPOKEN IN THE PAST

LOOMING THREATS. JOUMANNA: YOU HAVE SPOKEN IN THE PAST ABOUT WHAT A WEAKER REGIME WOULD MEAN, IN TERMS OF EMPOWERING EVERY DAY IRANIAN PEOPLE.

THERE ARE NO SIGNS YET THAT THE IRANIAN PEOPLE ARE TAKING TO THE STREETS. DO YOU THINK THAT CAN ACTUALLY

THE STREETS. DO YOU THINK THAT CAN ACTUALLY HAPPEN, IN THE ABSENCE OF GROUND TROOPS BEING COMMITTED TO IRAN? FMR. P.M. BENNETT:

TO IRAN? FMR. P.M. BENNETT:

LOOK, WE CANNOT TELL THE IRANIAN PEOPLE WHAT TO DO.

WE CAN CREATE THE ENVIRONMENT THAT WOULD ALLOW THEM TO UPRISE.

WE ARE WEAKENING THE SEEMS OF THIS REGIME.

WE ARE WEAKENING THE APPARATUS. IT IS GROWING WEAKER AND WEAKER, AND THERE WON'T BE A MORE OPPORTUNE MOMENT THEN NOW.

BUT ULTIMATELY, IT IS THEIR DECISION, NOT OURS. JOUMANNA:

YOU'VE SPOKEN ABOUT SHAKING THE HEAD OF THE OCTOPUS, AND INDEED, WE SAW THAT IN THE EARLY DAYS OF THE OPERATION, SOME KEY PERSONNEL AT THE TOP TAKEN OUT.

AS WE KNOW, THERE ARE SEVERAL LAYERS TO THE REGIME'S POWER STRUCTURE. WHAT WOULD IT TAKE TO DISMANTLE

STRUCTURE. WHAT WOULD IT TAKE TO DISMANTLE THEM? FMR. P.M. BENNETT: THE HEAD OF THE OCTOPUS IS THE

THEM? FMR. P.M. BENNETT: THE HEAD OF THE OCTOPUS IS THE ENTIRE IRANIAN REGIME. IF IT FALLS, THEN ALL OF ITS TENTACLES WILL DRY OUT. IT MEANS THAT HAS MELLOW WILL NOT GET THE BILLION DOLLARS A YEAR AND WILL DRY OUT.

HAMAS, ISLAMIC JIHAD, THE HOUTHIS, THE IRAQI ARM OF IRAN.

IF YOU CUT THE HEAD OF THE OCTOPUS OFF, YOU SOLVE 70%, 80% OF THE PROBLEMS IN THE MIDDLE EAST. THAT'S WHY THIS CAMPAIGN IS SO IMPORTANT. I'VE BEEN PUSHING FOR THIS FOR ABOUT A DECADE NOW, THAT SHOULD NOT BE FIGHTING THE TENTACLES, WE SHOULD GO TO THE HEAD OF THE OCTOPUS.

AND NOW WE ARE DOING IT.

IT IS THE MOST IMPORTANT AND EFFECTIVE, POTENTIALLY EFFECTIVE, CAMPAIGN THAT COULD BE. JOUMANNA:

YOU ARE SAYING YOU HAVE BEEN ADVOCATING FOR THIS FOR MANY YEARS NOW, BUT ARE YOU GOING TO BE THE POLITICIAN WHO REAPS THE REWARDS FROM THIS, OR IS IT GOING TO BE THE CURRENT ISRAELI PRIME MINISTER NETANYAHU, OBVIOUSLY HEADING INTO CRUCIAL ELECTIONS LATER THIS YEAR? FMR. P.M. BENNETT:

THIS IS NOT AT ALL ABOUT POLITICS.

YOU ARE RIGHT THAT NETANYAHU IS MY OPPONENT, I AM HIS OPPONENT.

I THINK THAT I SHOULD BECOME THE NEXT PRIME MINISTER OF ISRAEL. HOWEVER, ON THIS ISSUE, THERE

ISRAEL. HOWEVER, ON THIS ISSUE, THERE IS NO DAYLIGHT BETWEEN NETANYAHU AND MYSELF, NO DAYLIGHT WITHIN ISRAEL, AND NO DAYLIGHT BETWEEN ISRAEL AND THE UNITED STATES. WE STAND TOGETHER TO DISMANTLE

UNITED STATES. WE STAND TOGETHER TO DISMANTLE THE WORLD'S BIGGEST NUCLEAR THREAT, WHICH IS IRAN. JOUMANNA:

LET ME ASK YOU ABOUT ONE OF THOSE TENTACLES YOU JUST MENTIONED, HEZBOLLAH. IF THERE IS A NEW FRONT OPENED

MENTIONED, HEZBOLLAH. IF THERE IS A NEW FRONT OPENED UP IN LEBANON. WHAT WOULD BE AN ACCEPTABLE OUTCOME FOR ISRAEL? WOULD IT BE ENOUGH FOR HEZBOLLAH TO DISARM, WHICH IS WHAT THE LEBANESE GOVERNMENT ARE NOW PUBLICLY ADVOCATING FOR, PUT DOWN THEIR ARMS BUT

REMAIN A POLITICAL PARTY, OR WITHOUT THAT NOT BE ACCEPTABLE FOR ISRAEL? FMR. P.M. BENNETT:

FOR ISRAEL? FMR. P.M. BENNETT:

AS YOU SAID, DISARM TO HEZBOLLAH, FROM OUR PERSPECTIVE, IF THERE IS NO MILITARY COMPONENT THERE, THEN THEY CANNOT THREATEN OUR PEOPLE IN THE NORTH.

THAT IS WHAT WE WANT. WE DON'T CARE ABOUT THE INTERNAL LEBANESE POLITICS. WE DO INSIST THAT WE DON'T HAVE A MONSTER AS A NEIGHBOR. JOUMANNA:

OK, I WILL ROUND UP WITH ONE QUESTION, WHICH I THINK IS VERY CRUCIAL AS WELL. GIVEN THE MISSILE INTERCEPTION OVER TURKEY, YOU COME IN THE PAST, HAVERFORD TO TURKEY AND SAID WE SHOULD NOT TURN A BLIND EYE TO THEM, SUGGESTING THEY MAY BE ALIGNING MORE CLOSELY TO THE REGIONAL ACTORS, INCLUDING IRAN, BUT THE TABLES HAVE TURNED IN THE LAST 24 HOURS,

WITH TURKEY ALSO HAVING TO INTERCEPT SOME OF THE MISSILES THAT HAVE BEEN DIRECTED TOWARDS THEM.

LET ME ASK YOU WHETHER THERE IS A RISK OF FURTHER CONFRONTATION WITH TURKEY, BASED ON COMMENTS YOU HAVE SAID IN THE PAST?

FMR. P.M. BENNETT: WELL, WE NEED TO ENSURE THAT ERDOGAN DOES NOT CREATE A NEW ALLIANCE OF RADICAL ISLAM SUNNI VERSION, MEANING IN EXCESS BETWEEN HIMSELF, QATAR, AND

HAMAS. WE HAVE BEEN FACING RADICAL

HAMAS. WE HAVE BEEN FACING RADICAL SHIITE ISLAM. I HOPE THAT TURKEY DOES NOT

SHIITE ISLAM. I HOPE THAT TURKEY DOES NOT CHOOSE TO FERMENT TERROR AND ISLAMISM IN ITS POWER.

IT'S UP TO TURKEY. IF THEY SEEK PEACE, WE DEFINITELY WANT PEACE. BUT IF THEY TRY TO SURROUND US WITH TERROR, WE WILL NOT SIT IDLE.

JOUMANNA: THANK YOU, FORMER ISRAELI PRIME MINISTER NAFTALI BENNETT. ♪

JULIE: IT IS 5:30 A.M.

IN NEW YORK CITY. GOOD MORNING. I AM JULIE FINE, IN FOR VONNIE QUINN, WITH YOUR "BLOOMBERG BRIEF."

STOCKS RISE AND OIL SLIDES AFTER A DIZZYING START TO THE WEEK. THAT AS PRESIDENT TRUMP LOADS

WEEK. THAT AS PRESIDENT TRUMP LOADS REMOVING OIL RELATED SANCTIONS AND PREDICTED IRAN WAR WOULD RESOLVE VERY SOON. AND GULF NATIONS AGREED TO DEEPEN OIL PRODUCTION CUTS AS THE STRAIT OF HORMUZ REMAINS ALMOST AT A STANDSTILL. FOR A CHECK ON THE MARKET HERE IS KRISTINE AQUINO. KRISTINE:

IT IS STILL VERY MUCH A GREEN KIND OF DAY, AT LEAST LOOKING AT EQUITY FUTURES. U.S. FUTURES ACROSS THE BOARD RALLYING, EXTENDING GAINS WE SAW EARLIER.

S&P FUTURES NOW UP 0.3%. AN OUTPERFORMER IS THE NASDAQ COME UP NEARLY 0.5%. SOME OF THOSE CHIP STOCKS, BIG TECH NAMES, REALLY BEARING THE BRUNT OF THE SELLOFF WE HAVE SEEN OVER THE PAST COUPLE WEEKS, SO RALLYING IN A BIG WAY TODAY. RUSSELL FUTURES STILL VERY MUCH

TODAY. RUSSELL FUTURES STILL VERY MUCH IN THE GREEN, 0.3%, AS ECONOMY SENSITIVE STOCKS ARE ALSO GAINING. LET'S LOOK AT THE FIXED INCOME

GAINING. LET'S LOOK AT THE FIXED INCOME SPACE. LITTLE CHANGE HERE AT THE MOMENT , MAY BE TRENDING

SPACE. LITTLE CHANGE HERE AT THE MOMENT , MAY BE TRENDING SLIGHTLY HIGHER AS INVESTORS TRY TO FIGURE OUT WHAT THIS MEANS FOR FIXED INCOME AND INFLATION OUTLOOK IN PARTICULAR.

NOW A LOOK AT ENERGY AS WELL, WE HAVE SEEN CRUDE AGAIN CLIMBING BACK DOWN FROM THAT OVER $100 BARREL -- LEVEL.

BRENT CRUDE NOW TRADING AT $90 A BARREL.

VERY MUCH A CLIMB DOWN FROM THE MOVES WE SAW ON MONDAY. JULIE:

THANK YOU SO MUCH. FOR SOME STOCKS TO WATCH, HERE IS ABEER ABU OMAR. ABEER: GOOD MORNING.

SOME PRETTY TRANQUIL MORNING THIS MORNING COMPARED TO WHAT WE SAW YESTERDAY. BUT SOME INTERESTING MACRO STORIES WHEN WE DIG BEHIND-THE-SCENES.

WE HAVE TSMC, WHICH HAD EARNINGS TODAY, AND IT SUGGESTS SALES OF THE FIRST TWO MONTHS OF THE YEAR WERE UP 30%.

THAT IS LEAVING AN IMPACT ON STOCKS THAT DEPEND ON HARDWARE.

SANDISK IS ONE OF THEM. IT HAD A WHOPPING INCREASE, OVER 100% SINCE THE START OF THE YEAR, ADDING TO THOSE GAINS.

WE SEE TSMC PARING SOME OF THE GAME FROM EARLIER.

BUT TSMC IS THAT YOU PROVIDED FOR THE LIKES OF NVIDIA, MD, AND OTHERS. IF WE FLIP THE BOARD AND LOOK

AND OTHERS. IF WE FLIP THE BOARD AND LOOK AT STRATEGY, IT IS UP 3.3%. THIS IS A STORY WHERE STRATEGY, YESTERDAY, BOUGHT OVER $1 BILLION OF BITCOIN.

RECORDING HAS BEEN DOING QUITE WELL SINCE THE START OF THE WAR IN IRAN. SPEAKING OF THE WAR IN IRAN, WE

IN IRAN. SPEAKING OF THE WAR IN IRAN, WE TURN TO SOME BIG OIL COMPANIES. WE LOOK AT THE LIKES OF CHEVRON, EXXON. THEY WERE AMONG THE BEST

CHEVRON, EXXON. THEY WERE AMONG THE BEST PERFORMERS IN THE S&P 500 YESTERDAY.

TODAY, NOT SO MUCH, PARING SOME OF THE GAINS FROM EARLIER AS PRESIDENT TRUMP'S MESSAGE TOWARDS THE WAR IN IRAN EASES SOME OF THE PRESSURE ON BRENT CRUDE PRICES, THAT ARE AROUND $90 A BARREL NOW. JULIE: THANKS. JOINING US NOW IS WEI LI, GLOBAL CHIEF INVESTMENT SHORTAGES AT BLACKROCK, ALONGSIDE BLOOMBERG'S MANAGING EDITOR TODAY KRISTINE AQUINO.

THANK YOU FOR BEING WITH US. I WANT JUST WITH WHAT HAPPENED YESTERDAY. PRESIDENT TRUMP SIGNALED THE

YESTERDAY. PRESIDENT TRUMP SIGNALED THE END OF THE WAR, S&P RALLIED, OIL CAME DOWN AFTER HITTING RECORDS. YOUR REACTION TO THAT.

RECORDS. YOUR REACTION TO THAT.

WEI LI: THANK YOU FOR HAVING ME. I THINK THE CURE FOR HIGHER OIL PRICE IS HIGHER OIL PRICE, RIGHT?

MORE BROADLY, WE SAW YESTERDAY, AGAIN, IMMUTABLE LAWS IN ACTION.

LAST YEAR, WE FRAMED MARKET UNCERTAINTY AROUND IMMUTABLE LAWS, I.E. THINGS THAT ARE SO FUNDAMENTAL

LAWS, I.E. THINGS THAT ARE SO FUNDAMENTAL TO THE WORKINGS OF THE ECONOMY AND MARKETS THAT THEY CANNOT CHANGE VERY QUICKLY IN THE NEAR TERM, AND THEY CAN ACTUALLY INFLUENCE OUTCOME. ONE SUCH IMMUTABLE LAW IS

INFLUENCE OUTCOME. ONE SUCH IMMUTABLE LAW IS SUPPLY CHAIN, AND THE FACT THAT IT CANNOT RE-WIRE WITHIN A SHORT PERIOD OF TIME. THE MIDDLE EAST CONFLICT IS NOT JUST ABOUT ENERGY AND OIL DISRUPTION, IT IS ABOUT FERTILIZER, IT IS ABOUT FOOD PRICES.

MY COLLEAGUES FLAGGED HELIUM PRICES GOING A LOT HIGHER AS WELL. THAT IS ONE IMMUTABLE LAW THAT

WELL. THAT IS ONE IMMUTABLE LAW THAT CAN GOVERN AND SHAPE THE OUTCOME.

THE OTHER IMMUTABLE LAW IS THE DEBT SERVICING COSTS THROUGH THE FEEDBACK LOOP THAT IS SPIKING YIELDS.

THE TAKE AWAY IS IT IS SOMEWHAT SIMILAR TO LAST APRIL, WHICH IS THE UNCERTAINTY DOES NOT AUTOMATICALLY MEAN RISK OFF.

PREDICTING THE BLOW-BY-BLOW POLICY ANNOUNCEMENT IS EXTREMELY DIFFICULT, BUT APPRECIATING IMMUTABLE LAWS GOVERNING HOW ECONOMIES OPERATE CAN REALLY HELP US NARROW NEAR TERM PATHS , AND ALSO ROUND OFF THE CONVICTION OF RISK-TAKING, ESPECIALLY AS WE HAVE SEEN THE

MARKETS HAVE GOTTEN QUITE USED TO AND ARE EASILY INFLUENCED BY NEAR-TERM EXTRAPOLATION. KRISTINE:

NEAR-TERM EXTRAPOLATION. KRISTINE: I KNOW ONE OF YOUR VIEWS OF COURSE IS UNDERWEIGHT LONG-DURATION TREASURIES. I AM SURE THAT VIEW IS WORKING

LONG-DURATION TREASURIES. I AM SURE THAT VIEW IS WORKING OUT QUITE WELL AT THE MOMENT. BY AGAINST THAT CONTEXT, WHAT DO YOU MAKE OF THE CURRENT ENVIRONMENT IN THE MARKET'S OUTLOOK ON THE INFLATION PREMIUM?

IS THAT SOMETHING YOU THINK IS BECOMING MORE PERMANENTLY EMBEDDED, OR IS IT SOMETHING THAT COULD STILL BE TRANSITORY, AS FEDERAL RESERVE OFFICIALS LAST WEEK ALLUDED TO? WEI LI:

WELL, THERE ARE QUITE A FEW PIECES DRIVING INFLATION DYNAMICS IN THE NEAR TERM AND THE LONGER TERM.

IN THE NEAR TERM, THE DURATION OF THE MIDDLE EAST CONFLICT WOULD HAVE A SIGNIFICANT KIND OF IMPACT ON NEAR-TERM INFLATION EXPECTATIONS. HERE, THE KEY IS, EVEN WITHOUT

INFLATION EXPECTATIONS. HERE, THE KEY IS, EVEN WITHOUT A PROLONGED DISRUPTION THROUGH THE MIDDLE EAST, THIS SHOCK COULD STILL BE ENOUGH TO DISRUPT THE LOW INFLATION, LOW INTEREST RATE NARRATIVE THAT HAVE BEEN DOMINANT IN MARKETS UNTIL VERY RECENTLY. SO THAT IS DEFINITELY SOMETHING

WE ARE WATCHING FOR. OVER THE LONGER TERM, I AM PAYING CLOSE ATTENTION TO WAGE DYNAMICS, BECAUSE ULTIMATELY, IF THE AVERAGE HOURLY EARNINGS ARE STILL TOPPING EXPECTATIONS, GROWING AT 3.5% AT THE THREE-MONTH ANALYZED CASE,

WHICH IS MORE CONSISTENT WITH CORE INFLATION GETTING CLOSER TO 3% RATHER THAN 2% -- WHEN THAT IS THE CASE, WE CANNOT BE COMPLACENT ABOUT INFLATION LONGER-TERM.

SO ALL OF THAT PAINTS A PICTURE OF SHARPER TRADE-OFFS FACING THE FED AS WE HEADED TO THE NEXT FED MEETING. JULIE:

YOU JUST TOUCHED ON THAT, INFLATION COUPLED WITH THE WAR CASTS SOME DOUBT OVER WHETHER THE FEDERAL RESERVE WILL BE ABLE TO CUT RATES AND THE ECB CAN ACTUALLY RAISE THEM.

WEI LI: SO RIGHT NOW, MARKETS ARE PRICING 1.5 ADDITIONAL CUTS THIS YEAR.

WE SEE NO REASON TO PUSH BACK AGAINST IT.

LABOR MARKETS COULD STILL GIVE THE FED SOME COVER TO KEEP CUTS, BUT OBVIOUSLY OFFSETTING THAT IS INFLATION PRESSURE FROM WAGE DYNAMICS. SO THE GROWING DIVISION WITHIN

WAGE DYNAMICS. SO THE GROWING DIVISION WITHIN THE FED IS REALLY A FEATURE OF THIS ENVIRONMENT, HIGHLIGHTING THE TOUGHER TRADE-OFFS FACING THE FED ON THE ONE HAND, BETWEEN INFLATION, ON THE OTHER HAND BETWEEN DEBT'S INABILITY.

WE DON'T SEE REASON TO PUSH BACK AGAINST THE MARKET PRICING ABOUT 40 BASIS POINTS OF ADDITIONAL BASIS RATE CUTS FOR THE FED AND THE ECB, FOR THAT MATTER.

BECAUSE THE MORE VULNERABILITY OF THE EUROPEAN ECONOMY TO ENERGY SHOCK. SO IF THE DISRUPTION WERE TO

ENERGY SHOCK. SO IF THE DISRUPTION WERE TO PERSIST IN TWO MONTHS RATHER THAN WEEKS, WHICH WAS NOT OUR BASE CASE, AND NOW LOOKING EVEN LESS LIKELY -- BUT IF THAT WERE TO HAPPEN, IT WOULD PUSH INFLATION HIGHER IN EUROPE BY ALMOST 1%. THE EQUIVALENT IN THE U.S.

ALMOST 1%. THE EQUIVALENT IN THE U.S.

IS HALF THAT. SO YOU'RE UP BEING MORE ENERGY RELIGHT WILL BE SUSCEPTIBLE TO THAT, WHICH IS WHY THE MARKET DYNAMICS IS DIVERGING A LITTLE IN TERMS OF PRICING FOR THE ECB VERSUS THE FED. KRISTINE: AND BEYOND IRAN, MARKETS WERE ALREADY DEALING WITH PRIVATE CREDIT SCARES, AI SCARES, AND

NOW WE HAVE GEOPOLITICAL CONFLICT.

DO YOU THINK WE ARE AT A TIPPING POINT IN TERMS OF RISK APPETITE? COULD IT FUNDAMENTALLY CHANGED

APPETITE? COULD IT FUNDAMENTALLY CHANGED THE WAY INVESTORS -- WEI LI: WHAT GOVERNANCE RISK APPETITE IS REALLY WHAT I STARTED THIS INTERVIEW WITH, IMMUTABLE LAWS.

IN THE NEAR TERM, HEADLINES CAN BE VERY VOLATILE AND CAN BE QUITE SCARY. BUT ULTIMATELY, WHAT COULD

QUITE SCARY. BUT ULTIMATELY, WHAT COULD FUNCTION AS A FEEDBACK LOOP IS CONSIDERATION AROUND THE CONSEQUENCES OF GLOBAL SUPPLY CHAIN NEEDING TO REWIRE VERY QUICKLY, AND THE CONSEQUENCES OF SPIKING YIELDS, WHAT THAT

DOES TO SERVICING DYNAMICS. UNDERSTANDING THAT ALLOWS US TO KEEP OUR RISK-ON VIEW THROUGH RECENT DAYS OF MARKET VOLATILITY, AND WE ARE STICKING TO IT RIGHT NOW.

AND WE DON'T TALK ABOUT AS MUCH, BUT THE FUNDAMENTAL PICTURE IS HOLDING UP RIGHT OK. -- QUITE OK.

YOU LOOK AT EARNINGS, LAST QUARTER, U.S.

MARKETS ARE SURPRISING TO THE UPSIDE, TECH IN PARTICULAR.

THEY ARE JUST SHY OF 30%. I KNOW MARKET NARRATIVE SHIFTED FROM THE IMMEDIATE QUARTER TO QUARTER EARNINGS TO LONGER-TERM TERMINAL VALUE, BUT ULTIMATELY, THIS IS AN ENVIRONMENT WHERE AI TRANSFORMATION CREATES WINNERS AND LOSERS, AND MARKET

SENTIMENT CAN DRIVE INDISCRIMINATE PRESSURE.

THAT CREATES TACTICAL DISLOCATIONS AND OPPORTUNITIES TO BE ACTIVE. JULIE: THANK YOU SO MUCH FOR JOINING US, WEI LI OF BLACKROCK. NOW I WANT TO GO TO TOP STORIES TRENDING ON THE TERMINAL. THE WAR IN IRAN HIT SOME OF THE WORLD'S LARGEST HEDGE FUNDS.

BALYASNY, MILLENNIUM, AND POINT72 LOST MILLIONS OF DOLLARS. A TOP PENTAGON OFFICIALS SEES

DOLLARS. A TOP PENTAGON OFFICIALS SEES LITTLE CHANCE OF REVIVING THE ANTHROPIC A IDEAL.

DEFENSE SECRETARY MICHAEL TOLD BLOOMBERG THAT ANTHROPIC'S LAWSUIT CHALLENGING THE GOVERNMENT'S DECISION TO DECLARE THE COMPANY A SUPPLY CHAIN RISK WAS AN EXPECTED REACTION, BUT IT WOULD NOT ALTER THE PENTAGON’'S DECISION.

A QUARTER OF APPLE'S IPHONES ARE NOW MADE IN INDIA.

INCREASED IPHONE PRODUCTION IN THE COUNTRY BY ABOUT 53% LAST YEAR TO GET AROUND U.S. TARIFFS ON CHINESE EXPORTS.

THIS IS BLOOMBERG. ♪

JULIE: THIS IS "BLOOMBERG BRIEF ."

YOU LOOKING LIVE AT THE PRINCIPAL ROOM.

COMING UP, CBOE CEO CRAIG DONO HUE.

>> ON IRAN, YOU CALLED IT AN EXCURSION.

YOU SAID IT WOULD BE OVER SOON. ARE YOU THINKING THIS WEEK IT WILL BE OVER? OR IN DAYS?

>> VERY SOON. EVERYTHING THEY HAVE IS GONE, INCLUDING THEIR LEADERSHIP. IN FACT, THERE ARE TWO LEVELS OF LEADERSHIP, AND ACTUALLY, IT TURNS OUT, MORE THAN THAT.

ABOUT TWO LEVELS OF LEADERSHIP ARE GOING. JULIE:

PRESIDENT TRUMP PAINTING THE U.S. AND ISRAEL ARE MAKING SIGNIFICANT PROCESS IN THE -- PROGRESS IN THE WAR OF IRAN.

JOINING US NOW IS MICA SOELLNER. WHAT MEASURES IS THE ADMINISTRATION WEIGHING THEM? MICA: WHITE HOUSE OFFICIALS ARE WEIGHING THEIR OPTIONS AND HOW TO BRING DOWN THE PRICE AT THE PUMP AT ONE OF THE OPTIONS THEY ARE LOOKING AT IS POTENTIALLY A PAUSE ON THE TAX ON FEDERAL GAS. THAT WOULD REQUIRE CONGRESSIONAL APPROVAL. IT DID NOT WORK UNDER PRESIDENT

CONGRESSIONAL APPROVAL. IT DID NOT WORK UNDER PRESIDENT BIDEN, WHO DID ATTEMPT THAT SAME EFFORT, TO BRING DOWN GAS PRICES A FEW YEARS AGO.

ANOTHER OPTION THE ADMINISTRATION IS LOOKING AT IS POTENTIALLY TAPPING INTO EMERGENCY RESERVES THE U.S.

HAS THAT WAS CREATED IN THE 1970'S.

THAT COMES WITH ITS SETBACKS AS WELL, AS IT COULD POTENTIALLY TAP INTO INFRASTRUCTURE FUNDS, THE IT COULD BRING DOWN GAS PRICES. JULIE: AND PRESIDENT TRUMP PUTTING

PRICES. JULIE: AND PRESIDENT TRUMP PUTTING SEVERAL OPTIONS TO BRING DOWN GAS PRICES.

CAN YOU WEIGH INTO THAT? MICA:

YES, AS I MENTIONED, PAUSE ON THE GAS TAX AND POTENTIALLY LOOKING INTO THE EMERGENCY RESERVES AND DISTRIBUTING IT THAT WAY. THE PRESIDENT IS VERY AWARE

THAT WAY. THE PRESIDENT IS VERY AWARE THIS IS AN ISSUE FOR HIM. WHITE HOUSE OFFICIALS HAVE SEEN THE POLLING WHEN IT COMES TO THE STRIKES ON IRAN AND THAT THEY REMAIN UNPOPULAR WITH THE GOVERNMENT -- WITH THE PUBLIC.

THEY ARE MAKING SURE THERE IS NO LONG-TERM EFFECT WITH GAS PRICES SO CLOSE TO THE MIDTERMS AT THIS POINT.

PEOPLE WILL FEEL IT IN THEIR POCKETBOOKS. JULIE:

SOME SENATE DEMOCRATS THREATENING TO STALL IN THE SENATE UNTIL THE PRESIDENT'S TEAM EXPLAINS THE WAR. MICA:

YEAH, THERE IS A HANDFUL OF SENATE DEMOCRATS WHO HAVE THREATENED TO BASICALLY HOLD THE CHAMBER AT A STANDSTILL UNTIL THERE IS MORE TRANSPARENCY FROM THE ADMINISTRATION. A LOT OF THE BRIEFINGS FROM

ADMINISTRATION. A LOT OF THE BRIEFINGS FROM OFFICIALS, INCLUDING SECRETARY OF STATE MARCO RUBIO, HAVE BEEN BEHIND CLOSED DOORS. THAT HAS BEEN A COMPLAINT FROM SENATE DEMOCRATS, EVEN SOME REPUBLICANS, WHO SAY THEY WANT THESE OPEN-DOOR HEARINGS AND MORE ANSWERS IN TERMS OF WHAT ARE THE ADMINISTRATION'S GOALS, WHAT ARE THE CLEAR OBJECTIVES, BUT MOST IMPORTANTLY, WHAT IS THE TIMELINE FOR THEIR EFFORTS

IN IRAN? THAT IS ONE WAY THAT DEMOCRATS

IN IRAN? THAT IS ONE WAY THAT DEMOCRATS IN THE MINORITY CAN UTILIZE THE POWER THEY HAVE TO TRY AND PUT PRESSURE ON THE ADMINISTRATION. JULIE:

THANKS TO MICA SOELLNER OF BLOOMBERG GOVERNMENT.

OIL PRICES DROP AS GULF COUNTRIES DEEPEN PRODUCTION CUTS. THE STRAIT OF HORMUZ REMAINS AT

CUTS. THE STRAIT OF HORMUZ REMAINS AT A NEAR STANDSTILL.

BLOOMBERG EMEA NEWS DIRECTOR WILL KENNEDY JOINS US NOW.

THIS HAS BEEN A DIFFICULT FEW DAYS.

HOWEVER, THERE WAS SOME REBOUND AS THE PRESIDENT TRIES TO DECIDE WHAT HAPPENS NEXT. WILL: THAT'S RIGHT.

OIL HAD AN EXTRAORDINARILY VOLATILE DAY YESTERDAY.

A RECORD FALL FROM THE INTRADAY HIGH TO THE CLOSING YESTERDAY, ALL THE WAY UP TO ALMOST 120 DOLLARS TO ALL THE WAY DOWN TO $92. THE MARKET TOOK A LOT OF SOLACE

$92. THE MARKET TOOK A LOT OF SOLACE FROM THE PRESIDENT’'S COMMENTS, BECAUSE IF THIS WAR ENDS SOON, THE MARKET WILL BE ABLE TO BEGIN THE PROCESS OF GETTING BACK TO NORMAL, GETTING OIL OUT OF THE STRAIT OF HORMUZ.

BUT TODAY, WE HAVE HAD AN ILLUSTRATION THAT, UNTIL THAT HAPPENS, THE PROBLEMS IN THE OIL INDUSTRY WILL MOUNT.

THE OUTPUT CUTS THE SITUATION IS FORCING ON THE GULF OIL PRODUCERS ARE INCREASING.

AT THE SAME TIME, WE HAVE THE ARAMCO CEO TALK DURING THE COMPANY'S EARNINGS PRESENTATION AND SAY, IF THIS CONTINUES, IT RISKS A CATASTROPHE FOR THE MIDDLE EAST OIL INDUSTRY.

THE STAKES REMAIN HIGH. AT THE MOMENT, THE MARKET IS TAKING THE PRESIDENT AT HIS WORD, THAT THE WAR WILL END SOON. BUT IF IT PERSISTS, IT WILL

SOON. BUT IF IT PERSISTS, IT WILL REMAIN A PROBLEM. JULIE:

PRESIDENT TRUMP ALSO WAIVING SOME OIL RELATED SANCTIONS.

WHAT KIND OF IMPACT ARE YOU THINKING OF? WILL:

THE COUNTRIES WITH SANCTIONS ARE RUSSIA AND IRAN.

IN TERMS OF RUSSIA, IT HAS ALREADY SEEN SOME RELIEF, WHICH HAS ALLOWED INDIA TO BUY RUSSIAN OIL WITHOUT SANCTIONS.

THEY HAVE BEEN A BIG BUYER. BUYING RUSSIAN OIL AGAIN ALLOWS THEM TO REPLACE SOME OF THE OIL THAT HAS BEEN LOST, AND THERE IS LOTS OF RUSSIAN OIL ON SHIPS. THAT IS ONE SAFETY VALVE FOR THE MARKET, HELPING RELIEVE SOME OF THE PRESSURE.

AND IF THE WAR IS SETTLED, IF THE PRESIDENT FINDS A WAY TO TALK TO THE REGIME OF IRAN THAT HE WOULD LIKE TO SEE OIL SANCTIONS LISTED ON IRAN, BUT THAT IS SOME WAY OFF.

BUT HE HAS CLEARLY HAD IN HIS MIND SIMILAR TO THE SITUATION TO VENEZUELA, WHERE THEY REPLACED LEADERSHIP AND TO CONTROL A VENEZUELAN OIL. BUT THAT IS A LONG WAY OFF.

IT IS IMPORTANT, BUT I THINK IT IS MARGINAL TO RELIEVING THE CURRENT PROBLEMS. JULIE: I WANT TO TURN TO TECH NOW. TSMC SALES GROW ON CONTINUED

GLOBAL DEMAND FOR AI HARDWARE. FOR MORE, LET'S BRING IN BLOOMBERG'S NEIL CANCELING -- NEIL CAMPLING. NEIL:

IF YOU LOOK AT FEBRUARY AND JANUARY, WE ARE MOVING AT 30% GROWTH. ANALYSTS EXPECT 33% GROWTH IN

GROWTH. ANALYSTS EXPECT 33% GROWTH IN Q1. FEBRUARY WAS LOWER THAN

Q1. FEBRUARY WAS LOWER THAN JANUARY'S GROWTH, BUT THAT BECAUSE OF THE CHINESE NEW YEAR.

BUT TAKE IT WITH THE NUMBERS AND OTHER ANECDOTES, SUCH AS NVIDIA'S RECENT GUIDANCE, IT'S CLEARLY CONTINUED SPENDING ON AI, DRIVING THOSE RESULTS, WHICH IS ANOTHER POSITIVE IN TERMS OF THE TECH AI HARDWARE TRADE. JULIE:

ORACLE EARNINGS ON DECK AFTER THE MARKET CLOSE.

WHAT ARE WE EXPECTING? NEIL: ONE OF THE MAIN THINGS WE EXPECT THIS VOLATILITY AROUND THE RESULTS.

EXPECTATIONS ARE FOR A 10% SWING ON EARNINGS, EITHER NEGATIVE OR POSITIVE. IT VERY MUCH IS A CASE OF WHAT WILL THEY SAY ABOUT THE AI CAPEX.

I THINK IT IS TOO EARLY TO GET A READ ON LONG-TERM OUTPUT, BECAUSE IT IS NOT THE FISCAL YEAR END CARE THAT WILL COME AFTER MAJOR RESULTS. BUT WITH EQUITY DOWN 50% FROM WHERE THEY WERE IN SEPTEMBER AND THE COST OF THEIR DEBT, GOING UP SIGNIFICANTLY IN RECENT MONTHS, IT IS GOING TO BE FOCUSED ON FREE CASH FLOW, WHICH HAS BEEN NEGATIVE, AND

THE LEVERED BALANCE SHEET, WHICH SITS IN CONTRAST WITH OTHER BIG TECH STOCKS. RELATIVE TO WHERE GROWTH RATES CAN BE, WHICH IS LOWER THAN MANY OF THEIR BIG CAP PEERS, THEY WILL CERTAINLY WATCH FOR THE NUMBERS AND THE TONE ON THE CONFERENCE CALL AND ANALYST QUESTIONS. JULIE:

THANK YOU, BLOOMBERG'S NEIL CAMPLING THIS MORNING.

COMING UP, WE GET YOU SET FOR YOUR TRADING DAY.

THIS IS BLOOMBERG. ♪

>> IT IS OBVIOUSLY CONCERNING FOR OUR PARTNERS IN THE REGION, OUR CUSTOMERS, AND THEIR FAMILIES.

IN TERMS OF BUSINESS, SO FAR, THE EFFECTS ARE LIMITED.

IN TERMS OF ENERGY SUPPLY OF CARS AND OIL, WE NORMALLY WORK WITH LONG-TERM CONTRACTS, SO THE EFFECT IS LIMITED THERE.

SO FAR, WE ALSO SEE NO MAJOR SUPPLY CONSTRAINTS. JULIE:

NOW A LOOK AT WHAT IS AHEAD TODAY. FIRST UP, ADP WEEKLY UNEMPLOYMENT NUMBERS ARE OUT AT 8:15 A.M.

NEW YORK TIME TO GET TREASURY WILL AUCTION NOTES AT NOON.

AND ORACLE EARNINGS COME OUT AFTER THE MARKET CLOSE.

WE WILL HAVE A MARKET CHECK SHORTLY.

LET'S START RIGHT NOW, SEEING THE INTRADAY UP.

S&P FUTURES UP AGAIN, NASDAQ FUTURES UP.

INTRADAY RUSSELL 2000 FUTURES ARE UP 8.60, WHICH IS GOOD NEWS AFTER WHAT WE SAW YESTERDAY. THE TWO YEAR YIELD IS UP -- I AM SORRY, THE TWO YEAR YIELD IS DOWN. THE 10 YEAR YIELD IS UP.

THE U.S. 30 YEAR YIELD IS UP, MUCH BETTER AFTER EVERYTHING WE SAW WITH OIL YESTERDAY.

TAKE A LOOK AT CRUDE.

RESPONDING FROM YESTERDAY, OIL WAS UP OVER $100, NOW IT IS UNDER $90. SEEING THESE NUMBERS IMPROVE

UNDER $90. SEEING THESE NUMBERS IMPROVE SLIGHTLY AFTER EVERYTHING WE SAW.

THAT IS IT FOR THE "BLOOMBERG BRIEF." THIS IS BLOOMBERG.

♪