Oil Jumps on Houthi Attacks, Tax Break for UK Pubs, More

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Bloomberg News Now 7 min 5 speakers 4 chapters transcribed 1 month ago
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What is the main topic discussed in this episode?

Tom Giles 0:00
The Bloomberg This Weekend Podcast. News, politics, and the lighter side of Bloomberg. The great wealth transfer includes $570 billion in classic cars. I'm not in a position to be inheriting any classic cars. You?
Unknown 0:13
No, but my brother did inherit my non-classic car when I moved to New York, so. Ew. He still has not paid me for it. Coming for you, Joey.
Charles Capel 0:22
The Bloomberg This Weekend Podcast. Subscribe today on Apple, Spotify, or wherever you listen. News when you want it with Bloomberg News Now. I'm Charles Capel.
Caroline Hepker 0:34
And I'm Caroline Hipker.
Charles Capel 0:35
Iranian-backed Houthi militants say they've targeted two oil tankers in the Red Sea. Their claim appears to be confirmed by the UK's Maritime Trade Operations Centre, which says a tanker reported being struck in the area. Brent crude jumped above $96 a barrel as traders reacted to the latest threat to shipping in the region. Onor Ant is our managing editor for the Middle East and North Africa.
Onur Ant 1:00
The overnight attack on shipping by Houthis marks the first time they struck an oil tanker after they announced that they would be imposing a blockade on any ship calling for Saudi ports in the Red Sea. That's critical information because After the war on Iran began and after the effective closure of Hormuz, the Red Sea coast is where the Saudis redirected a bulk of their oil exports and they became so reliant on the area that loadings at Yanbu alone exceeded 4 million barrels a day.
Charles Capel 1:33
That's Bloomberg's honor ant. Shortly after the reports of the Red Sea attacks, the U.S. announced a 12th consecutive night of strikes against Iran, saying it was targeting the country's ability to attack commercial shipping. And with the conflict seeming to widen, there is little sign that the U.S. or Iran are ready to return to the negotiating table.
Caroline Hepker 1:54
The European Central Bank is expected to leave interest rates unchanged today as policymakers assess the impact of renewed fighting in the Middle East. Economists and traders expect the ECB to keep its rates at 2.25% after raising borrowing costs at their last meeting. The recent jump in oil prices has revived expectations that the central bank may need to tighten policy again later this year, despite signs that inflation eased more than expected in June. Here's the view of José García Cantera, who's the CFO of Santander.
Unknown 2:25
This all depends on the outcome or the developments in the Middle East and how this translates into inflationary pressures or not. So far, this translation is happening, but it's very moderate. And I think we need to wait and see how this develops. Having said that, we expect one more rate increase in September. And from then, I think the ECB will react to data.

How did Houthi attacks in the Red Sea drive oil prices higher?

Caroline Hepker 2:53
Santander's CFO speaking there to Bloomberg. Attention will now turn to ECB President Christine Lagarde's news conference where investors will be listening for any indication that another rate rise in September remains on the table.
Charles Capel 3:06
And to some of this morning's earning reports now. A French lender, BNP Paribas, has reported profits that beat expectations in the second quarter. The bank saw net income of €4.35 billion over the period, up by 33% compared to the same period last year.

What evidence confirmed reports of tankers being struck in the Red Sea?

Charles Capel 3:23
Equity's revenue rose to €1.4 billion, well ahead of the €1.1 billion forecast by analysts, only a little shy of the gains reported by the largest Wall Street firms.
Caroline Hepker 3:34
Italy's Unicredit also reported higher than expected profit and raised its full-year guidance. The bank saw net income of €2.9 billion in the second quarter and upgraded its full-year profit forecast to well above €11 billion. The strong results come as Unicredit CEO Andrea Urchel moves closer to a takeover of Germany's Commerzbank.
Charles Capel 3:56
In the US, Alphabet boosted its projected capital expenditures for the year to $205 billion. The highest spending outlook stoked concerns that Google's parent company will ditch fiscal discipline in the race to dominate AI. Here's our executive editor for technology, Tom Giles.
Tom Giles 4:17
We thought they were spending a lot before, and this quarter they came out and said, hold my beer, we're spending even more than we said.

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