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In another reversal, US President Donald Trump announced a unilateral, open-ended extension of the ceasefire in the Iran war. Now, there’s no peace, but no active war either. This may become the new normal: a fragile ceasefire without a formal deal, with tensions simmering, sporadic flare-ups, and oil near $100.

Indefinite Extension

The US and Iran were discussing returning to talks in Islamabad on the eve of the two-week ceasefire deadline. Trump warned he was unlikely to extend the truce and would resume bombing Iran if they failed to show. Tehran held its line: no talks while the US blockade remained.

That pointed to a return to hostilities unless someone blinked. Trump blinked first. The political cost of war was rising for the US, as was its economic toll. The prospects for a win were becoming more elusive by the day. Tehran’s goal remains the same: survival and imposing a global cost for the war. It can’t afford to blink, and it didn’t.

What does this mean for the war? There’s no deal so there’s no lasting peace. There’s no high-intensity war either. Instead, the war may be settling into a prolonged middle ground:

• No formal end to the hostilities between the US/Israel and Iran because the underlying differences remain unresolved. These include issues such as Iran’s nuclear program, the Strait of Hormuz, and Lebanon.
• Escalation, on the other hand, is costly. It draws the US deeper into a conflict it doesn’t want and more entrenched in a region it would prefer not to focus on. Tehran, weakened but also emboldened, will hold the Strait of Hormuz and the global economy hostage. And Arab Gulf states are likely to face renewed attacks.

Today's show features:

• Ray Takeyh, Senior Fellow for Middle East Studies at Council of Foreign Relations
• Seth Jones, President of Defense and Security Department at CSIS on Defense and Counterterrorism measures in Iran War
• Jay Hatfield, CEO and CIO at Infrastructure Capital Advisors
• Seth Fiegerman, Bloomberg AI Editor on SpaceX Has Deal for Right to Acquire Cursor for $60 Billion
• Michael Stivala, President & CEO at Suburban Propane

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As Washington battles over tariffs and supply chains, and Wall Street fixates on AI infrastructure, a new tech cluster is quietly thriving – and it’s not in Silicon Valley. It’s California’s state capital: Sacramento. The city – less than 90 miles from the Bay Area – is seeing unprecedented industry momentum (it’s home to nine global chips companies and offers 26x more semiconductor growth capital than the U.S. average). Greater Sacramento is outpacing the Bay Area in semiconductor job growth: According to the Greater Sacramento Economic Council, the region is expected to exceed state averages in GDP growth and job creation through 2026 — and is the #1 California market for semiconductor growth.

Barry Broome is President and CEO of the Sacramento Economic Council. He discusses how Sacramento is a new CA hub for tech/industry as the Bay Area remains pricy and businesses deal with continued regulations. He speaks with Carol Massar and Tim Stenovec.

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President Donald Trump announced he was extending a ceasefire with Iran indefinitely a day before it was set to expire, even as plans for a fresh round of talks between the two countries fell apart.

In a Truth Social post, Trump said Tuesday he would maintain a blockade over ships coming to and from Iran in the Strait of Hormuz. He said Pakistan, which had mediated between the two sides, asked for the US to hold off on fresh strikes and he was extending the ceasefire until Iran submits a new proposal “and discussions are concluded, one way or the other.”

For instant reaction and analysis, Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec speak with:

• Wendy Benjaminson, Bloomberg News Senior Editor
• Terry Haines, Pangaea Policy Founder
• Adam Farrar, Bloomberg Economics Senior Geoeconomics Analyst
• Ambassador James F. Jeffrey, Philip Solondz Distinguished Fellow at The Washington Institute

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The people, companies and trends shaping the global economy.

Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF.

Kevin Warsh repeatedly pledged to act independently if he’s confirmed as the next Federal Reserve chair, rejecting Democratic concerns he would be a “sock puppet” for President Donald Trump, who continues to demand lower interest rates.

Warsh, in testimony before the Senate Banking Committee Tuesday, called for a slew of changes to the way the US central bank makes its decisions, including a new framework for dealing with persistent inflation and a new way of communicating with the public. But he provided few specifics and avoided answering questions about the near-term path of interest rates.

He also insisted the president never asked him to commit to any particular rate decision.“The president nominated me for the position, and I’ll be an independent actor if confirmed as chairman of the Federal Reserve,” Warsh said, in response to questions from Democrats about how he planned to handle pressure from Trump.

In her opening remarks, the senior Democrat on the panel, Senator Elizabeth Warren said Warsh would be Trump’s “sock puppet” at the Fed.

“Kevin Warsh hit all the right notes to reassure his supporters on the committee that he will push forward his idea of regime change at the Fed,” Joseph Brusuelas, chief economist at RSM. “He said nothing that will disrupt his path to being approved, if it makes it to the floor of the Senate.”

Treasuries fell as strong economic data and higher oil prices prompted traders to scale back rate-cut expectations, overshadowing testimony from Warsh. The policy-sensitive two-year note climbed as much as seven basis points to 3.79% as US crude oil rose back above $90 a barrel.

Today's show features:

• Michael McKee, Bloomberg TV and Radio International Economics & Policy Correspondent on Kevin Warsh's Hearing
• Jitania Kandhari, Deputy CIO of Solutions and Multi-Asset Group at Morgan Stanley Investment Management
• Mark Gurman, Bloomberg News Managing Editor for Global Consumer Tech, on Apple Names John Ternus as new CEO
• Samantha Dart, Co-Head of Global Commodities Research at Goldman Sachs
• Anil Chakravarthy, President of Digital Experiences Business at Adobe on the company’s Agentic AI Strategy

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Lauren Berger and Marla Felton are the founders of REAL Cookies who are on mission to make healthier snacks for kids and adults through tasty gluten and grain-free, plant-based cookies. Bringing their knowledge of real food and real ingredients to their community, Lauren & Marla, introduced Real Food is Fuel, a nutrition label curriculum to elementary students, grades 2-5. Now, they have taken the brand from Pandemic startup to securing a strategic merger with Creations Foods USA Inc. to create a new, vertically integrated consumer packaged goods (CPG) platform dedicated to healthier, better-for-you snacking across North America.

Creations Foods owns such brands as HighKey Snacks, a manufacturer of high protein, low carbohydrate snacks formulated with reduced sugar; Moon Cheese, a manufacturer of baked cheese snacks; Aw Yeah Snacks, a manufacturer of cookies that feature bold and intense flavors; and now Real & Real Cookie Poppers, dairy-free, gluten and grain-free cookies that are formulated with minimal ingredients. They speak with Bloomberg's Carol Massar and Tim Stenovec.

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Apple named hardware chief John Ternus as the iPhone maker’s next leader, with Chief Executive Officer Tim Cook shifting to the role of executive chairman.

Ternus, 50, will become CEO on Sept. 1, the company said in a statement Monday. The Apple veteran was head of hardware engineering since 2021 and has spent 25 years focused on product development at the iPhone maker. Bloomberg News previously reported that Ternus was Cook’s heir apparent.

Ternus’s hardware engineering division will be taken over by longtime deputy Tom Marieb, according to a person with knowledge of the matter. He will report to newly named Chief Hardware Officer Johny Srouji. In that role, Srouji is gaining oversight of a newly combined hardware engineering and hardware technologies group.

For instant reaction and analysis, Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec speak with:

• Bloomberg News Senior Executive Editor for Global Technology Tom Giles
• Bloomberg Intelligence Global Tech Research Head Mandeep Singh

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The people, companies and trends shaping the global economy.

Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF.

US President Donald Trump said he’s not likely to extend the two-week ceasefire with Iran, increasing the urgency for negotiators to conclude a deal to end the war.

Trump said in a Monday phone interview that the truce, which he announced April 7, expires on “Wednesday evening Washington time” — possibly buying more time for negotiations. But the president also said it’s “highly unlikely that I’d extend it” if no deal is reached before then.

“I’m not going to be rushed into making a bad deal. We’ve got all the time in the world,” the president said.In the interview, Trump reiterated that the Strait of Hormuz would stay blockaded for now, saying “the Iranians desperately want it opened. I’m not opening it until a deal is signed.” Iran previously said it would open the critical waterway for energy supplies to international shipping, but reversed that decision in light of Trump’s refusal to follow suit.

Details about the next negotiating session, expected to take place in Pakistan, started to came into focus on Monday. Iran is also sending a team, according to people familiar with the plans who declined to be identified, although it is not clear who would lead the delegation. Earlier, Tehran said it was hesitant to participate in further peace talks with the US.
Today's show features:

• Jeff Mason, Bloomberg News Washington and White Correspondent on his conversation with President Trump & Stuart Paul, Bloomberg Economics US and Canada Economist to Preview Kevin Warsh Hearing
• Rich Weiss, American Century Investments Chief Investment Officer of Multi-Asset Strategies
• Dina Bass, Bloomberg News AI Infrastructure Reporter on Google Bets on New AI Chips
• Kabir Nath, CEO at Compass Pathways, on President Trump Signs EO to Ease Psychedelic-tied Therapies Access

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The consumer price index has risen quickly since early 2020, with some categories seeing steeper price increases, making it hard for consumers to avoid feeling swindled. Quince, an online retailer, has found success by selling low-cost "luxury" goods, cutting out middlemen, and using data analysis and close relationships with manufacturers to keep prices low.

Amanda Mull, Bloomberg Businessweek Senior Reporter writes how Quince's approach to logistics, shipping merchandise directly from manufacturers to customers, has enabled the company to undercut competitors' prices and achieve efficiency unheard of among large apparel retailers.

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Featuring some of our favorite conversations of the week from our daily radio show "Bloomberg Businessweek Daily."
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The people, companies and trends shaping the global economy.
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF.

President Donald Trump said Iran agreed to suspend its nuclear program indefinitely, and will not receive any frozen funds from the US.Trump said in a phone interview on Friday that a deal to end the war, which the US and Israel began with Iran in late February, is mostly complete. Talks over a lasting agreement will “probably” be held this weekend, the president said.

“Most of the main points are finalized. It’ll go pretty quickly,” Trump said.Iran has yet to comment on any deal beyond the Strait of Hormuz opening, nor on claims made by Trump on Thursday that Tehran had offered concessions — including over the key issue of its nuclear program.
Oil, fuel and natural gas prices plunged on hopes that the latest developments would mean more energy supplies can finally transit safely through the strait.

Brent crude fell more than 10% to trade below $89 a barrel by 12:41 p.m. in New York and wiped out most of its gains since the onset of the war. Diesel prices in Europe and the US led the move lower in the energy complex.

Trump said he hasn’t decided who would lead a US delegation for talks with Iranian officials to sign an agreement. Asked if he would travel to Pakistan, which hosted the last round of negotiations, the president said, “I may.”

JD Vance led discussions with Iranian officials last weekend, and Trump said the vice president, his son-in-law Jared Kushner, and envoy Steve Witkoff were candidates to attend additional talks.

Today's show features:

• Spencer Faragasso, Institute for Science and International Security Senior Fellow
  on Trump Says Iran Agrees to Suspend Nuclear Program
• Felix Gillette, Bloomberg News Media and Entertainment Editor on continued Netflix earnings reaction, Reed Hastings departure
• David Busch, Trajan Wealth CEO & CIO on the macro shift and oil shock
• Nick Wadhams,  Bloomberg News National Security Team Leader on Trump’s $1.5 Trillion Pentagon Budget Raises Some GOP Eyebrows

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