Trump Open to Iran Sanctions Relief, Standoff Boosts Bond Yields, More

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What is the main topic discussed in this episode?

Carol Masser 0:01
Hi, I'm Carol Masser with a helpful tip to keep you plugged in throughout the market day. Subscribe to the Stock Movers Report from Bloomberg. These are short audio episodes, five minutes or less, delivered right to your podcast feed. Stock Movers fills you in on the day's winners and losers on Wall Street and tells you about the news and data that's driving those gains and losses. Why spend all day watching tickers scroll across your screen? Subscribe to Stock Movers today. On Apple, Spotify, or anywhere else you listen.
Amy Morris 0:30
News When You Want It, with Bloomberg News Now, I'm Amy Morris.

Is Trump open to easing Iran sanctions in exchange for nuclear progress?

Amy Morris 0:34
President Trump says he's open to sanctions relief for Iran in exchange for progress on the nuclear issue. But Iranian officials have privately expressed pessimism that they'll be able to make a deal before the midterms. Michael Allen is managing director of Beacon Global Strategy.
Michael Allen 0:49
I think he means that the blockade, which is probably the best sanctions enforcement mechanism we could possibly have, is biting. I mean they can't get a lot of their oil out. They can't get certain products and goods in. The question of course has always been When will it bite to such a degree that these Iranian hardliners feel like they need to make real concessions?

Why are Treasury yields surging as investors pull back from the bond market?

Amy Morris 1:24
The sell-off in the U.S. bond market is deepening after the President rejected Iran's latest proposal to reopen the straight. The decline pushing most Treasury yields higher by about ten basis points. The tenure treasury yield jumped five point. That's a fresh nineteen year high. And 30 year yields jumped to 5.57%, the most in more than 22 years. Bloomberg Intelligence Chief U.S. interest rate strategist Iraq.
Ira Jersey 1:49
Jersey. Some of this move just feels like it's more than being driven by fundamentals. And that means that we're in the middle of a buyer strike.

How are rising yields and stronger economic data affecting stocks and Fed rate expectations?

Ira Jersey 1:56
And uh you know, buyer strikes can last quite a while until yields are high enough that um you know it entices people to really come in and and buy in a uh in a pretty significant way.
Amy Morris 2:07
Bloomberg's IRA jersey on Bloomberg Business Week Daily, the ten year treasury yield now at five and a quarter percent. The two year yield at four point nine two percent, and the thirty year Treasury yield at five point five six percent, that has stocks moving lower. We check markets for you all day long here at Bloomberg, the SP five hundred down six tenths of a percent, Nasdaq down seven tenths of a percent, and the Dow down about six tenths of one percent. Some key economic reports coming out this week are expected to add evidence that the economy is getting stronger.

Why is the FAA delaying certification of Boeing’s largest 737 Max jet?

Amy Morris 2:39
That would help make the Fed's case that interest rates should be higher. And the Philadelphia Semiconductor Index is more than one percent lower, led by Qualcomm, which is down by seven percent. The FAA will delay certification on the largest version of the Boeing seven hundred thirty seven Max jet while it studies a software issue that could increase pilot workload during landing. FAA administrator Brian Bedford says the FAA has not yet concluded whether the glitch is a safety of flight issue. The delay will remain in place until they are satisfied there is no safety issue. Shares of Boeing now more than six percent lower.

How did SpaceX’s Starship test flight reach orbit and return to Earth?

Amy Morris 3:14
Earlier it had fallen six point eight percent. That is the biggest intraday drop for Boeing since April of last year. The SpaceX launched Starship into orbit for the first time today and successfully delivered the most advanced Starlinks yet, but they cut the flight short to ensure safety. Bloomberg's adladlow says there was a moment when it looked like the mission was at risk.
Ed Ludlow 3:35
On the way up, uh after separating from the booster, the six Raptor engines at the base of the spacecraft, one of them cut out early, which led to some debate on the SpaceX team whether they would attempt to go to that orbital altitude. In the end, they decided that it was possible.
Amy Morris 3:53
SpaceX brought Starship home a little earlier than planned, splashing down in the Pacific Ocean near Hawaii around noon. They'd been aiming for a ten hour flight to prove its readiness for NASA's Artemis Moon program.

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