Oil Prices Rise Ahead Of US CPI, CoreWeave Surges, More

episode

Bloomberg News Now 7 min 3 speakers 3 chapters transcribed 1 month ago

▲ 0

Transcript

jump: chapters · speakers · find in transcript

Transcript

Transcript generated automatically by AI and may contain errors.

What is the opening overview of AI’s next phase and the Bloomberg Tech event?

Unknown 0:00

AI is entering its most consequential phase where scale, safety, and sovereignty will determine who leads and who lags. Join Bloomberg Tech in London on November 2nd and 3rd as global leaders across business, finance and policy examine the defining trade-offs shaping the future of AI. Thank you to our presenting sponsor Salesforce and supporting sponsors IDA Island and Schneider Electric. Learn more at BloombergLive.com slash. Slash Tech London.

Stephen Carroll 0:31

News when you want it with Bloomberg News Now. I'm Stephen Carroll. Oil is continuing its grind higher today as skepticism grows over the prospects for a deal to restore energy flows through the Strait of Hormuz.

Stephen Carroll 0:56

Push oil into a range of $100 to $150 a barrel, with the upper end becoming increasingly plausible as market buffers erode. Noam Radan is a senior fellow at the Washington Institute for Near East Policy.

Unknown 1:09

It is unlikely that we're gonna go back to the maritime arrangement that existed in the Strait of Hurmuz before the Iran War. Iran has gained immense influence in the strait. It will not let go of this leverage it has obtained easily.

Stephen Carroll 1:26

Noam Radan's assessment chimes with the latest US government forecast for oil supply disruption from the war to reach around six hundred thousand barrels a day until the end of twenty twenty seven. Adding to the squeeze, Russia's overseas crude shipments have fallen to their lowest since May amid continuing Ukrainian strikes on its oil infrastructure. Kiev hit five Russian refineries in the first week of August and another two in recent days. Days Well the rise in oil prices comes as the US and Iran both appear to be hardening their positions in negotiations over the Strait of Hormuz. That's despite Pakistan's defence minister saying the two countries are close to some sort of arrangement. Former US Deputy Secretary of State, Wendy Sherman, is more skeptical.

Unknown 2:11

I wish I did share Pakistan's optimism and I will hope that there is more reality to this than I think there is. We are definitely at a stalemate.

Stephen Carroll 2:21

Wendy Sherman speaking there. Her view comes as President Trump told reporters last night that he's in no rush to secure a deal and that the US is in a very good position. How long the conflict continues could also matter for the Fed with the Iran war adding to inflation pressures ahead of crucial US inflation data later today. Boston Fed President Susan Collins has told the Financial Times she could back a September rate hike if the data dictates, warning inflation remains too high. A split between the United States and Japan over Bank of Japan policy risks undermining their joint efforts to support the yen. Japan's Prime Minister Sanee Takeichi is wary of raising interest rates too high too fast, while US Treasury Secretary Scott Besson sees monetary tightening as crucial to supporting the currency.

Stephen Carroll 3:09

The yen has already given back some of the gains from the first coordinated US-Japan intervention since 1998. eight. Our markets live strashist Mark Cranfield says the BOJ's next move will be crucial.

Mark Cranfield 3:20

So the BOJ speakers will really have a big sway on whether or not people get serious about a September rate hike, but it probably needs September and October to come back to back for people to really get behind the yen.

Stephen Carroll 3:34

Splinberg's Mark Cranfield expectations are building for another BIJ rate hike in September or October as the yen again nears one sixty to the dollar. Corweave shares have surged after booming AI demand bolstered the company's sales growth. The computing provider raised its outlook to a range of twelve point four billion dollars to thirteen point two billion dollars for the full year, after revenue more than doubled in the second quarter.

Why are oil prices climbing and how is the Strait of Hormuz conflict influencing the market?

Stephen Carroll 3:58

Galuria head of Technology Research at DA Davidson says the results are an encouraging step for the firm.

Gil Luria 4:05

It's incrementally positive. There is still a really big question about whether we even need neo clouds, whether they're a a good business. At the base of it is are they getting a good enough return on investment to pay for the very expensive capital that they have to borrow?