Houthis Attack Saudi Tankers, Alphabet/Tesla Earnings, More

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Bloomberg News Now 9 min 9 speakers 6 chapters transcribed 1 month ago
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What is the main topic discussed in this episode?

Francine Lacqua 0:00
This week on Leaders, with me, Francine Lacqua. I speak to tennis legend Rafa Nadal about how he stayed competitive despite injury.
Rafa Nadal 0:08
I was able to enjoy the victories probably more than if I will not have this issue.
Francine Lacqua 0:13
One iconic match.
Rafa Nadal 0:15
In my mind was, I am almost dead.
Francine Lacqua 0:19
And whether he misses playing.
Rafa Nadal 0:21
I don't miss tennis because there was nothing else to offer.
Francine Lacqua 0:24
Listen and watch Leaders with me, Francine Lacroix, on Bloomberg Television or wherever you get your podcasts.
Doug Krisner 0:32
News when you want it with Bloomberg News Now, I'm Doug Krisner. The U.S. military is carrying out its 12th night of strikes on Iran. U.S. Central Command said once again, these attacks will continue to further degrade Iran's ability to threaten civilian mariners and commercial vessels transiting Iran. regional waters. Meantime, Houthi militants in Yemen said they had targeted two Saudi oil tankers in the Red Sea. Now, all of this comes after the U.S. and Iran signaled they are not ready to return to the negotiating table. President Trump said earlier the Islamic Republic will pay a big price for the deaths of four U.S. service members in the past week. Trump vowed that the U.S. will destroy one bridge or power plant any time Iran's military shoots at a
Doug Krisner 1:18
Here is Bloomberg's Chris Kennedy.
Chris Kennedy 1:20
Oil traders are looking at some of the news that, for instance, there aren't direct negotiations happening, which suggests that we're going to be in this cycle at least for a little bit longer. The president is clearly very frustrated with the war. He is upset about the deaths of service members, and he's looking to continue strikes for the time being.
Doug Krisner 1:41
That is Bloomberg's Chris Kennedy. Meantime, the US is reportedly beefing up forces in the Middle East. The Wall Street Journal reports that in the past week, special operations forces have been deployed to the region and bomber aircraft are on high alert to ramp up their operations. Now, these moves are designed to give President Trump more military options to expand the war in Iran. Additionally, more than 150 medics have arrived at the Landstuhl Regional Medical Center in Germany in recent days. This hospital is the primary location for treating troops injured in combat in the Middle East. The U.S.

What happened in the latest Middle East strikes and US military response?

Doug Krisner 2:17
and Saudi Arabia have finalized a deal on nuclear technology sharing. This will allow American companies to build a uranium enrichment facility in Saudi Arabia if a joint study determines it's necessary. Now, the deal is expected to break from previous nuclear sharing agreements that have barred the enrichment of uranium. This agreement could face opposition in Congress due to concerns it could lead to nuclear proliferation. It is a big day for tech earnings after the Bell Alphabet reported second quarter cloud revenue above expectations. And these results showed strong gains in users of Alphabet's Gemini AI system. Alphabet also said its cloud backlog grew to $514 billion, powered by strong demand for AI infrastructure and AI solutions.
Doug Krisner 3:05
And we got reaction from Daniel Flax. He is senior research analyst at Neuberger.
Chris Kennedy 3:10
What we're seeing is really this transformation of the digital infrastructure led by AI. And Google really has all of the key assets from the silicon to the models, the application, all the solutions in the cloud.
Doug Krisner 3:26
That is Daniel Flax from Neuberger. But at the same time today, Alphabet raised its estimate on capital spending to as much as $205 billion this year. Shares in Alphabet are down by more than 4% in late U.S. trading. Tesla's second quarter earnings fell short of Wall Street estimates. Adjusted EPS 33 cents, that is below the 51 cents analysts had estimated. Tesla also reported negative free cash flow.

How did Houthi militants target Saudi oil tankers in the Red Sea?

Doug Krisner 3:52
of $1.09 billion. Now, this quarter represents a setback for Tesla as it looks to build out new lines of business around robotics and autonomous vehicles. Here is John McNeil, CEO of DVX Ventures.
John McNeil 4:07
This is not an AI investment story. This is a story in the base business. And the base business, I think, is giving hints that the product lineup is older.

Why are US–Iran negotiations stalled and what did President Trump say about retaliation?

John McNeil 4:14
It's dated.

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