Equinor's Gas Warning, UK Inflation 15-Month Low, More

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Bloomberg News Now 8 min 9 speakers 4 chapters transcribed 1 month ago
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What is the main topic discussed in this episode?

Jennifer Zabasaja 0:00
A new chapter in global growth is being written and much of it is happening in Africa.
James Woolcock 0:05
Africans need to invest. There are deals to be done and business to be won.
Jennifer Zabasaja 0:09
I'm Jennifer Zabasaja. Every week on the Next Africa podcast, we track capital flows and political shifts shaping the continent's future. The digitalization of Africa is going to power its growth. Creating the world of something like HIV is possible. Population growth is so enormous in Africa. Listen to Next Africa on Apple, Spotify or wherever you get your podcasts.
James Woolcock 0:30
News when you want it with Bloomberg News Now. I'm James Woolcock.
Caroline Hepker 0:34
And I'm Caroline Hepker.
James Woolcock 0:36
The widening conflict between the United States and Iran is leaving America's Gulf Arab allies increasingly anxious about the threat to their security and their economies. Sources tell us officials across the region are now divided over how President Donald Trump should proceed. Some are urging tougher military action, while others are calling for an immediate return to diplomacy. The split comes as Trump played down the prospect of talks with Iran.
Unknown 1:01
They want to meet desperately to try and end it because they're getting decimated. I will tell you, they want to desperately meet. And until they're ready to meet in a meaningful way, we have no interest.
James Woolcock 1:13
Despite Trump's comments, mediators are continuing efforts to restart negotiations as Houthi militants in Yemen threaten shipping in the Red Sea, helping lift Brent crude prices for a fourth straight day. In Washington, U.S. Defense Secretary Pete Hegseth revealed to lawmakers that the war has now cost the U.S. more than $37 billion.
Caroline Hepker 1:32
And as the latest escalation in the Middle East again rattles energy markets with Brent crude futures up more than 3% above $94 a barrel, Equinor's chief financial officer has warned that Europe faces an uncertain winter for natural gas supplies. Tor Grimm-Raytan told Bloomberg that the market remains highly unpredictable as the conflict raises fresh concerns over energy security.
Unknown 2:00
When it comes to the European gas market, it is a vulnerable situation. And we are very uncertain about how we will enter the winter.
Caroline Hepker 2:13
Those comments from Torgrim Reytan came as Equinor reported better than expected second quarter earnings helped by higher European gas prices and a boost to its oil trading business from the conflict in Iran. Adjusted net income after tax rose to $3.44 billion, surpassing estimates. Norway's largest company now expects to buy back $3 billion of shares this year.
James Woolcock 2:37
That news about oil comes as UK inflation slowed to its lowest level in more than a year in June, helped by lower fuel prices. Consumer prices rose by a 2.6% from a year earlier. The figure, which was marginally below expectations, will offer some relief to new Prime Minister Andy Burnham as he focuses on the cost of living. Sam Unstead is our Market Today editor.
Sam Unstead 2:59
The headline rate coming down is obviously optically good, but that's almost entirely because of petrol prices, which fell month on month, but the inflation rate on petrol is still about 21, 22% year on year. So a little bit of pressure taken off, but not really.

How is the widening US–Iran conflict affecting Gulf Arab security and economies?

Sam Unstead 3:15
Overall, petrol prices are still much, much higher than they were earlier in the year.
James Woolcock 3:19
And Sam Unstead notes that relief could be fleeting. Economists expect inflation to rise again next month as higher household energy bills and renewed tension in the Middle East push up oil and gas prices.
Caroline Hepker 3:30
And UK borrowing costs for the government are lingering around two-month highs as oil prices and fiscal jitters keep the market on edge. Both Britain's new Prime Minister and its new Chancellor are stressing their commitments to fiscal discipline. Here's Chancellor John Healey speaking to Treasury staff yesterday.
John Healey 3:50
I'm still burning with a passion about this institution as a force for stability and for security, for growth, a force for a successful Britain.
Caroline Hepker 4:06
Despite Healey's words, some in the bond markets wonder how the new administration intends to fund some of its big pledges. This morning, the government has announced that it is lowering the national cap on all bus fares in England outside of London from £3 to £2.

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