WEBVTT - Progressive El-Sayed Secures Crucial Primary; Houthi Threat amid Hormuz Talks 0:00:02.560 --> 0:00:09.480 Bloomberg Audio Studios, Podcasts, Radio News. 0:00:10.000 --> 0:00:10.559 Good morning. 0:00:10.600 --> 0:00:13.440 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:13.480 --> 0:00:14.960 stories we're following today. 0:00:15.520 --> 0:00:18.040 Karen will have the latest on progress toward an Iran 0:00:18.120 --> 0:00:20.119 deal in a moment. But we begin this morning with 0:00:20.200 --> 0:00:23.040 politics in this country. Voters headed to the polls for 0:00:23.120 --> 0:00:26.360 primary elections in five states. The race to watch is 0:00:26.400 --> 0:00:29.520 in Michigan, where a hard fought Senate race could signal 0:00:29.560 --> 0:00:32.480 the direction of the Democratic Party. With ninety four percent 0:00:32.479 --> 0:00:36.319 of votes counted, NBC News is projecting progressive Abdul el 0:00:36.400 --> 0:00:40.240 Sayad will defeat Establishment back to Congresswoman Haley Stevens forty 0:00:40.240 --> 0:00:43.279 eight point seven to forty seven point three percent. Now, 0:00:43.280 --> 0:00:45.800 the Associated Press has yet to call this race, and 0:00:45.840 --> 0:00:48.479 Elsayad told his supporters last night he knew it was 0:00:48.520 --> 0:00:49.120 going to be tight. 0:00:49.280 --> 0:00:50.920 We all knew they were going to spend their money. 0:00:50.960 --> 0:00:53.360 We didn't know they were going to spend seventy million. 0:00:53.080 --> 0:00:54.040 Dollars of their money. 0:00:55.880 --> 0:00:57.960 We didn't know that they were going to out spend 0:00:58.040 --> 0:01:06.360 US eleven dollars to one. And yet we're still standing now. 0:01:06.400 --> 0:01:09.200 If Abdul al Sayad's lead holds, it would be the 0:01:09.240 --> 0:01:12.520 biggest win in a progressive way for Democrats that started 0:01:12.560 --> 0:01:15.160 in New York and stretched as far as Colorado. The 0:01:15.200 --> 0:01:19.120 winner in Michigan will face former Republican Congressman Mike Rodgers, 0:01:19.319 --> 0:01:21.760 in a state that President Trump carried in two of 0:01:21.800 --> 0:01:23.400 the last three elections. 0:01:23.520 --> 0:01:26.640 Well Nathan. Democrats are also focusing in on Virginia their 0:01:26.760 --> 0:01:29.640 quest to take control of the House in November. Voters 0:01:29.680 --> 0:01:33.039 there went with establishment candidates in two districts that the 0:01:33.040 --> 0:01:36.000 party hopes to flip in November. In the first district, 0:01:36.080 --> 0:01:40.000 Richmond era prosecutor Shannon Taylor won the Democratic primary with 0:01:40.040 --> 0:01:43.240 fifty three percent of the vote. She'll face longtime Republican 0:01:43.280 --> 0:01:46.920 incumbent Rob Woodman, and in the military heavy second district, 0:01:46.959 --> 0:01:51.000 it'll be a rematch between a Democratic former Congresswoman Elaine Lauria, 0:01:51.120 --> 0:01:53.920 and the Republican who ousted her in twenty twenty two, 0:01:54.440 --> 0:01:58.240 Jen Kiggins. Lauria won her primary with eighty percent of 0:01:58.280 --> 0:02:02.240 the vote. Republicans also held a Senate primary in Virginia, 0:02:02.280 --> 0:02:05.880 and Army veteran Berg Misusawa won that race with fifty 0:02:05.920 --> 0:02:08.960 one percent of the vote. He'll face Democrat Mark Warner 0:02:09.080 --> 0:02:09.680 in November. 0:02:09.800 --> 0:02:13.120 Nan Karada was a primary election night as well in Kansas, Missouri, 0:02:13.160 --> 0:02:16.000 and Washington State. Checking some of the key races in 0:02:16.080 --> 0:02:19.520 those states, Democrat Marie Glusen camp Perez held off a 0:02:19.520 --> 0:02:22.880 progressive challenge in Washington's third district with thirty nine percent 0:02:22.919 --> 0:02:23.440 of the vote. 0:02:23.560 --> 0:02:26.320 She goes on to face Republican John Brawn in November. 0:02:26.560 --> 0:02:29.920 In Missouri, Democratic Congressman Wesley Bell held off a challenge 0:02:29.919 --> 0:02:33.560 from the progressive he unseated two years ago Corey Bush 0:02:33.639 --> 0:02:36.359 by a vote of fifty nine to thirty seven percent. 0:02:36.880 --> 0:02:40.880 And Kansas voters rejected a Republican backed constitutional amendment that 0:02:40.880 --> 0:02:44.240 would have required direct elections of state Supreme Court justices. 0:02:44.600 --> 0:02:47.799 The vote there was sixty one percent against to thirty 0:02:47.880 --> 0:02:49.120 nine percent in favor. 0:02:49.240 --> 0:02:51.360 Now, let's get to the latest developments in the Middle 0:02:51.400 --> 0:02:54.240 East and Nathan. The prospect of an interim deal focused 0:02:54.280 --> 0:02:57.120 on the Strait of horm Mooz is gaining traction this morning. 0:02:57.240 --> 0:03:00.160 Cutter says a proposal had been drafted in both both 0:03:00.200 --> 0:03:05.200 American and Iranian officials sounded hopeful about reopening the crucial waterway. 0:03:05.520 --> 0:03:08.720 President Trump spoke with reporters last night in Los Angeles. 0:03:09.280 --> 0:03:11.000 I think it'd be very smart to make a deal. 0:03:11.040 --> 0:03:14.079 We'll see what happens. They had a very good day. 0:03:14.680 --> 0:03:16.560 The negotiations were good. 0:03:16.680 --> 0:03:19.880 And we get more on the negotiations from Bloomberg Middle 0:03:19.880 --> 0:03:21.720 East reporter Aber albu Omar. 0:03:22.040 --> 0:03:24.760 We could see a deal coming about in the next 0:03:24.960 --> 0:03:28.760 day or so today, even as imminent as today, suggesting 0:03:28.960 --> 0:03:30.880 some sort of opening to the Strait of her Moves 0:03:30.919 --> 0:03:32.480 to get a trickle of movement through it. 0:03:32.800 --> 0:03:32.920 Now. 0:03:32.960 --> 0:03:36.280 Qatar, which has been mediating this between the US and Iran, 0:03:36.440 --> 0:03:39.800 said that a draft language was put in place for 0:03:39.880 --> 0:03:43.440 both parties to review. Nothing is finalized yet. President Trump 0:03:43.520 --> 0:03:46.440 saying earlier the Iranians were talking to him, that they 0:03:46.520 --> 0:03:49.360 were happy to talk, that they called him and asked 0:03:49.640 --> 0:03:52.120 to talk about the reopening of the Street of her Moos. 0:03:52.280 --> 0:03:54.880 We also heard from Mark Rubio Scott Pessant about a 0:03:54.920 --> 0:03:57.240 deal that could be imminent about the reopening of the 0:03:57.280 --> 0:03:58.200 Strait of her Moves and. 0:03:58.240 --> 0:04:01.280 As Spoomberg Middle East reporter Aber rabu Omar, who says 0:04:01.320 --> 0:04:03.760 a sixty day agreement on shipping through the strait is 0:04:03.800 --> 0:04:07.400 being prepared and Axios is reporting no tolls or fees 0:04:07.440 --> 0:04:09.840 would be charged during the sixty day period. 0:04:09.960 --> 0:04:10.800 Well Karen, We've been. 0:04:10.680 --> 0:04:13.800 Watching oil fall over the last few days on optimism 0:04:13.840 --> 0:04:17.599 over a deal, but crude is higher this morning. That's 0:04:17.640 --> 0:04:21.080 after a spokesperson for the HOO the Militant said the 0:04:21.120 --> 0:04:24.120 group would escalate attacks on vessels from Saudi Arabia in 0:04:24.200 --> 0:04:27.640 the Northern Red Sea. Checking prices now, Brent crude is 0:04:27.720 --> 0:04:30.360 up one point two percent, trading above eighty dollars a barrel. 0:04:30.360 --> 0:04:33.039 West Texas Intermediates at around seventy six dollars, a gain 0:04:33.080 --> 0:04:36.800 there of about a half percent. Meanwhile, American Petroleum Institute 0:04:36.880 --> 0:04:39.880 CEO and President Mike Summer says traffic through the Strait 0:04:39.920 --> 0:04:42.800 will need the increase for gas prices in this country 0:04:42.920 --> 0:04:43.360 to drop. 0:04:43.600 --> 0:04:46.200 Unfortunately, we're still not getting enough product through the Strait 0:04:46.240 --> 0:04:48.680 of horm Mooves, even at the highest ends. They're saying 0:04:48.680 --> 0:04:51.200 that we're getting only about seven million barrels of oil 0:04:51.279 --> 0:04:54.480 through the Strait of her Moves at this point. Because 0:04:54.480 --> 0:04:57.120 of new pipeline capacity, you only need to get that 0:04:57.240 --> 0:04:59.839 level up to about eleven million barrels a day through 0:05:00.040 --> 0:05:02.360 the Straight because of a lot of that product now 0:05:02.400 --> 0:05:03.720 flowing through pipelines. 0:05:03.880 --> 0:05:07.440 American Petroleum Institute CEO Mike Summers spoke there on Bloomberg's 0:05:07.440 --> 0:05:09.360 Balance of Power. You can get the full conversation on 0:05:09.400 --> 0:05:12.000 the Bloomberg Video Hub at Bloomberg dot com and the 0:05:12.000 --> 0:05:13.080 Bloomberg Business app. 0:05:13.080 --> 0:05:15.680 Well, Nathan, there's new developments this morning in the war 0:05:15.920 --> 0:05:18.520 with Ukraine, and at least seventeen people were killed in 0:05:18.640 --> 0:05:22.279 Russian era attacks. Amid fresh signs that Kiev's ability to 0:05:22.320 --> 0:05:26.719 defend against missile strikes is becoming exhausted. Ukraine is seeking 0:05:26.760 --> 0:05:30.680 more interceptors from allies. Existing stocks for the US made 0:05:30.760 --> 0:05:34.799 Patriot system that's most capable of taking out Russian ballistic missiles. 0:05:35.080 --> 0:05:37.520 Star Back to the markets now, Karen. Futures are mixed. 0:05:37.600 --> 0:05:39.960 Following a record close on Wall Street, the S and 0:05:40.000 --> 0:05:43.920 P five hundred rows one point eight percent yesterday, the 0:05:43.960 --> 0:05:48.000 Philadelphia Semiconductor Index climbed six point six percent for its 0:05:48.200 --> 0:05:49.920 fourth straight day of gains. 0:05:50.080 --> 0:05:53.400 Well, this morning, we're watching shares of SpaceX, Nathan. They 0:05:53.400 --> 0:05:56.640 are down ten percent and its first earnings report as 0:05:56.680 --> 0:06:00.960 a publicly traded company, SpaceX a detailed higher AI spending 0:06:01.000 --> 0:06:05.600 that overshadowed better than expected quarterly results. Revenue beat estimates, 0:06:05.640 --> 0:06:09.120 while the company posted a smaller than expected loss. However, 0:06:09.240 --> 0:06:12.680 capital spending sword as Elon Musk pushes ahead with his 0:06:12.880 --> 0:06:17.840 AI and space ambitions. Bloomberg text at Ludlow has the details. 0:06:18.120 --> 0:06:21.440 SpaceX spent a staggering eighteen point four billion dollars in 0:06:21.440 --> 0:06:24.120 the quarter and the vast majority of that eighty six 0:06:24.160 --> 0:06:28.279 percent was on AI infrastructure. But renting out compute capacity 0:06:28.360 --> 0:06:31.360 or computing power to companies like Google and Thropic is 0:06:31.400 --> 0:06:33.800 becoming a major business, and they gave lots of evidence 0:06:33.839 --> 0:06:37.479 of that. Second, like where is the growth? SpaceX said 0:06:37.520 --> 0:06:40.920 they will hit one hundred billion dollars in annual revenue 0:06:41.000 --> 0:06:42.320 run your EATE by the end of this year, and 0:06:42.400 --> 0:06:45.039 Musk even went a step further, saying they have line 0:06:45.040 --> 0:06:48.839 of sight like complete confidence that SpaceX will hit one 0:06:48.960 --> 0:06:52.240 trillion dollars of real revenue in twenty thirty. 0:06:52.360 --> 0:06:56.080 Bloomberg text at Ludlow says SpaceX's results camp a rollercoaster 0:06:56.279 --> 0:06:59.080 ride since the company's record at stock market debut in 0:06:59.200 --> 0:07:02.600 June post IPO, volatility is white more than one trillion 0:07:02.640 --> 0:07:05.440 dollars from SpaceX's market value, and. 0:07:05.480 --> 0:07:08.560 On the conference call last night, Karen Elon Musk reiterated. 0:07:08.200 --> 0:07:09.720 His commitment to Nvidia. 0:07:09.920 --> 0:07:14.200 He said SpaceX will build exclusively on Nvidia chips, and 0:07:14.360 --> 0:07:16.960 Nvidia shares in the pre market are up nearly two percent. 0:07:17.240 --> 0:07:20.880 If in shares of Advanced micro devices are sliding their 0:07:20.960 --> 0:07:24.640 down eight percent. This morning, must comments on his commitment 0:07:24.680 --> 0:07:28.640 to Nvidia and the chip maker's underwhelming sales outlook weighing 0:07:28.680 --> 0:07:32.040 on shares. This morning, AMD says it expects third quarter 0:07:32.120 --> 0:07:35.320 revenue of about thirteen billion dollars. Well that topp the 0:07:35.400 --> 0:07:39.440 average analyst estimate. It missed some lofty projections, so we 0:07:39.440 --> 0:07:42.880 again more with Bloomberg Markets reporter Anthony Stevens, some of the. 0:07:42.880 --> 0:07:45.360 Stock person reaction has to be put into context with 0:07:45.440 --> 0:07:47.440 the year to date performance of that stock. That stock 0:07:47.520 --> 0:07:49.680 is up triple digits, sets up aroun one hundred and 0:07:49.720 --> 0:07:52.040 forty percent year to day. It's an eight percent replacement 0:07:52.360 --> 0:07:55.800 when the earnings failed to clear the best estimates. Is 0:07:55.880 --> 0:07:56.840 kind of understandable. 0:07:57.000 --> 0:08:00.840 Bloomberg's Anthony Stevens on AMD's results. They come just weeks 0:08:00.840 --> 0:08:04.000 after CEO Lisa Sue unveiled a new AI ship that 0:08:04.000 --> 0:08:06.280 the company believes will outperform in videos. 0:08:06.520 --> 0:08:08.920 In some other AI news, Karen OpenAI says some of 0:08:08.960 --> 0:08:12.400 its models, along with ones from another AI lab were 0:08:12.400 --> 0:08:17.000 involved in three previously unreported cybersecurity incidents. Open AI says 0:08:17.040 --> 0:08:20.160 these new incidents are separate from a previously disclosed case 0:08:20.200 --> 0:08:21.720 involving hugging face. 0:08:21.600 --> 0:08:24.960 Nathan and California Federal Judge schaledled a twelve day trial 0:08:25.040 --> 0:08:27.480 early next year, and a pair of lawsuits seeking a 0:08:27.480 --> 0:08:31.480 blog Paramount's guidances one hundred ten billion dollar proposed acquisition 0:08:31.560 --> 0:08:35.040 of Warner Brothers Discovery. The judge says she will hear 0:08:35.120 --> 0:08:37.719 cases brought separately by a group of states and the 0:08:37.760 --> 0:08:40.120 Writer's Guild of America in a single trial. 0:08:40.440 --> 0:08:41.760 Both lawsuits allege. 0:08:41.480 --> 0:08:44.480 That allowing the media companies to combine operations with hurt 0:08:44.480 --> 0:08:48.480 competition in film and television production and distribution. Matt News 0:08:48.520 --> 0:08:52.760 comes after Paramount's guidance reported earnings yesterday, posting a surprise 0:08:52.960 --> 0:08:56.320 surge in second quarter profits, with cost cutting from its 0:08:56.360 --> 0:08:59.680 merger last year continuing to pay off. The company said 0:08:59.679 --> 0:09:02.280 it has to delivered over two point seven billion dollars 0:09:02.280 --> 0:09:06.400 in annual cost savings associated with that combination and expects 0:09:06.400 --> 0:09:08.720 to reach its target of three billion dollars. 0:09:08.960 --> 0:09:09.960 We have this programming note. 0:09:10.000 --> 0:09:13.320 Karen Bloomberg Radio is introducing a new feature exclusively for 0:09:13.440 --> 0:09:16.840 Bloomberg dot com subscribers and terminal clients. You can help 0:09:16.840 --> 0:09:20.520 shape our conversations by submitting questions for our analysts and 0:09:20.559 --> 0:09:23.160 experts to answer live on air. Subscribers can just go 0:09:23.200 --> 0:09:26.400 to Bloomberg dot com slash Ask radio to send in 0:09:26.480 --> 0:09:29.120 your questions, and you may just hear the mask on 0:09:29.200 --> 0:09:35.480 the air. That's Bloomberg dot Com slash Ask Radio. 0:09:36.000 --> 0:09:37.160 Time now for a look at some of the other 0:09:37.200 --> 0:09:39.240 stories making news in New York and around the world. 0:09:39.280 --> 0:09:41.559 And for that we're joined by Bloomberg's Michael Barr Michael, 0:09:41.559 --> 0:09:42.680 good Morning, Good. 0:09:42.480 --> 0:09:47.160 Morning, Karen. Embattled Ohio Representative Max Miller said he's seeking 0:09:47.200 --> 0:09:51.080 an ethics investigation on himself to clear his name. The 0:09:51.120 --> 0:09:54.920 House Ethics Committee is reviewing allegations that Miller may have 0:09:55.040 --> 0:09:59.080 engaged in domestic violence and abuse or illegal drug use. 0:09:59.480 --> 0:10:03.000 Ohio Senator Bernie Moreno, his former father in law, and 0:10:03.080 --> 0:10:06.280 other fellow Republicans have called for Miller to resign his 0:10:06.360 --> 0:10:10.040 House seat, and political reports the White House is pressuring 0:10:10.080 --> 0:10:13.840 Miller to drop his reelection bid. Yesterday, Miller spoke to 0:10:13.880 --> 0:10:17.600 CNN about allegations from Moreno that he withheld a baby 0:10:17.679 --> 0:10:19.880 toy from his two year old daughter a blue bunny. 0:10:20.280 --> 0:10:23.720 This is nothing more than an individual who's being politically 0:10:23.800 --> 0:10:26.760 vindictive in talking about a blue bunny. When I have 0:10:26.920 --> 0:10:30.080 text messages I can show you from our parent coordinator, 0:10:30.120 --> 0:10:33.320 who is a mandatory court reporter, who said that mister 0:10:33.440 --> 0:10:36.200 Moreno would be coming over my home. And then another 0:10:36.240 --> 0:10:37.960 individual came who I don't. 0:10:37.760 --> 0:10:43.080 Know, Miller faces Democrat Brian Poindexter in November's election. The 0:10:43.120 --> 0:10:45.040 family of a second man to die at a New 0:10:45.080 --> 0:10:49.160 Jersey immigrant detention center in eight months is talking, federal 0:10:49.160 --> 0:10:52.720 authorities say. Thirty nine year old Edwin Lopez Corneo died 0:10:52.800 --> 0:10:56.800 Saturday at the Delaney Hall Facility in Newark after what 0:10:56.840 --> 0:11:01.120 they called a medical emergency. However, his family Budge's medical 0:11:01.240 --> 0:11:04.840 negligence led to his death. A New Jersey lawsuit claiming 0:11:04.880 --> 0:11:08.200 poor conditions and inadequate access is making its way through 0:11:08.200 --> 0:11:11.520 federal court. This woman spoke at Tuesday's news conference. 0:11:11.760 --> 0:11:15.200 When we heard from the family of Edwin, you know 0:11:15.559 --> 0:11:20.160 they had not even realized that he was dead. 0:11:20.400 --> 0:11:24.000 Audio courtesy of CBS two. The Salvadoran was arrested in 0:11:24.080 --> 0:11:27.400 June accused of entering the country illegally it's a growing 0:11:27.440 --> 0:11:31.679 problem in New York City writers on illegal e bikes. Yesterday, 0:11:31.840 --> 0:11:35.240 City Council Speaker Julie Mennin announced new bills focused on 0:11:35.400 --> 0:11:38.920 e bike and escuder's safety. Mayor Zren Mamdani. 0:11:38.720 --> 0:11:40.520 Because it is hard for New Yorkers to keep up 0:11:40.559 --> 0:11:42.960 with what is legal or illegal if they're able to 0:11:42.960 --> 0:11:45.800 buy it online. And our work is how to ensure 0:11:45.800 --> 0:11:47.840 that each of those New Yorkers knows this is something 0:11:47.840 --> 0:11:50.079 that's permitted, this is something that's not and the reason 0:11:50.080 --> 0:11:51.680 it's not is because it's not safe. 0:11:51.880 --> 0:11:54.920 In total, seventeen bills will be introduced in the City 0:11:54.960 --> 0:11:58.120 Council next month. Global News twenty four hours a day 0:11:58.200 --> 0:12:00.960 and whenever you want it with Bloomberg News Hell Michael 0:12:01.000 --> 0:12:02.839 Barr and this is Bloomberg Karen. 0:12:04.200 --> 0:12:04.839 Thanks Michael. 0:12:05.040 --> 0:12:07.840 Time now for our Bloomberg Sports update, and for that 0:12:07.960 --> 0:12:10.160 we bring in John Stashower. 0:12:09.800 --> 0:12:12.960 Ranks Scabby John Robinson, considered the best running back in 0:12:13.000 --> 0:12:15.440 the NFL, and he has cast in was looking for 0:12:15.480 --> 0:12:18.120 a new contract, got it with Atlanta. He could make 0:12:18.160 --> 0:12:21.600 seventy five million dollars through twenty thirty. The other top 0:12:21.679 --> 0:12:24.560 running back, Jamir Gibbs, also twenty four years old looking 0:12:24.600 --> 0:12:28.319 for a new deal in Detroit. Chicago made tackle Darnell 0:12:28.440 --> 0:12:31.480 Wright the highest paid ever right tackle in Baltimore, gave 0:12:31.480 --> 0:12:34.320 whiteout Zay Flowers a big four year, one hundred and 0:12:34.320 --> 0:12:37.040 forty million dollar deal. Carlos Alcarez is with drawn to 0:12:37.080 --> 0:12:39.680 the upcoming tournament in Cincinnati with that wrist injury. That 0:12:39.679 --> 0:12:40.880 you're Bloomberg Sports Update. 0:12:42.400 --> 0:12:43.120 Stay with us. 0:12:43.240 --> 0:12:46.000 More from Bloomberg day Break coming up after this. 0:12:50.440 --> 0:12:54.640 Coast to coast on Bloomberg Radio, nationwide on Sirius XM, 0:12:54.760 --> 0:12:57.600 and around the world on Bloomberg dot Com and the 0:12:57.640 --> 0:13:00.679 Bloomberg Business Album. This is bloom Daybreak. 0:13:00.800 --> 0:13:02.040 Good morning, I'm Nathan Hager. 0:13:02.040 --> 0:13:04.040 They are still counting the votes in Michigan, but in 0:13:04.080 --> 0:13:07.920 a closely watched Democratic Senate primary, progressive Abdullah el Side 0:13:07.920 --> 0:13:11.760 is holding a slim lead over establishment favorite Congresswoman Haley Stevens. 0:13:12.400 --> 0:13:15.520 We should know who the victor will be tomorrow and 0:13:15.559 --> 0:13:17.120 the work starts anew. 0:13:17.320 --> 0:13:20.839 That was Abdullah Side stopping short of declaring victory last night. 0:13:20.960 --> 0:13:23.680 This morning, we are joined by Jennifer Lawless, Professor of 0:13:23.720 --> 0:13:26.480 politics at the University of Michigan. It is great to 0:13:26.480 --> 0:13:29.319 speak with you this morning, professor, And as I look 0:13:29.360 --> 0:13:32.920 at the results as they stand at this moment, el 0:13:33.040 --> 0:13:36.880 said holds a one point two percent lead over Stevens 0:13:37.360 --> 0:13:41.000 according to the Associated Press. If that holds, does this 0:13:41.080 --> 0:13:44.600 seal a leftward shift for the Democratic Party more broadly 0:13:44.640 --> 0:13:45.520 across the country? 0:13:45.520 --> 0:13:47.400 Good morning, Good morning. 0:13:47.559 --> 0:13:52.000 Well, it definitely seals a shift toward insurgent candidates. I 0:13:52.000 --> 0:13:54.720 think there's been a lot of attention focused not only 0:13:54.720 --> 0:13:57.200 on this race, but on races across the country that 0:13:57.280 --> 0:14:01.440 are pitting these insurgents against establishing candidates. As though it's 0:14:01.480 --> 0:14:05.000 really about progressives versus moderates, and most of these moderates 0:14:05.040 --> 0:14:07.520 are pretty far to the left anyway. It's really a 0:14:07.559 --> 0:14:10.480 lot different in terms of rhetoric and the ability to 0:14:10.520 --> 0:14:11.760 fight the Trump administration. 0:14:12.280 --> 0:14:16.280 How could a progressive do in a state like Michigan, 0:14:16.600 --> 0:14:19.960 a swing state in the past, one that President Trump 0:14:20.000 --> 0:14:22.160 has carried in two of the last three elections. 0:14:23.600 --> 0:14:26.160 Well, I think it's possible for him to win. You know, 0:14:26.200 --> 0:14:30.640 this is a big test because the insurgent candidates, especially 0:14:30.720 --> 0:14:34.200 those who who have identified as Democratic socialists, although he 0:14:34.240 --> 0:14:37.960 does not have won in mostly blue states, but there's 0:14:38.000 --> 0:14:40.480 time to pivot in the general election. And I don't 0:14:40.480 --> 0:14:43.440 mean switch policy views, but make a case to the 0:14:43.480 --> 0:14:47.560 broader Michigan electorate that you're somebody who can represent their interests. 0:14:47.600 --> 0:14:51.160 And the reality is Donald Trump's approval in Michigan is very, 0:14:51.320 --> 0:14:55.080 very low. The affordability crisis is something that's very important 0:14:55.120 --> 0:14:59.120 to Michigan voters, and in terms of foreign policy, they're 0:14:59.120 --> 0:15:01.880 also concerned. So there's a path for him to win, 0:15:02.120 --> 0:15:04.920 but he's going to have to make a really compelling argument. 0:15:05.200 --> 0:15:05.400 Now. 0:15:05.440 --> 0:15:08.600 In your home state of Virginia, in a couple of 0:15:09.040 --> 0:15:14.480 key house races, Democrats went with more moderate candidates in 0:15:14.720 --> 0:15:17.800 a couple of seats that the party's really hoping to 0:15:17.840 --> 0:15:20.760 flip in their quest for the majority in November. Is 0:15:21.000 --> 0:15:25.680 Virginia a moderate outlier amid the progressive Democratic wave? 0:15:26.920 --> 0:15:27.640 I don't think so. 0:15:28.040 --> 0:15:31.920 It really requires a progressive candidate to emerge with a 0:15:31.960 --> 0:15:34.440 lot of power, a lot of backing, and we just 0:15:34.440 --> 0:15:38.160 didn't see that in the Virginia House races. The primaries 0:15:38.200 --> 0:15:42.160 were not particularly competitive. I also think that as far 0:15:42.200 --> 0:15:45.600 as Virginia is concerned, it is a pretty blue state. 0:15:45.680 --> 0:15:49.800 We've elected Republican governors over time, but this is just 0:15:49.880 --> 0:15:52.520 not a state where the progressive wing of the party 0:15:52.600 --> 0:15:55.560 or the insurgent wing of the party has decided to 0:15:55.880 --> 0:15:57.160 play actively. 0:15:57.600 --> 0:16:01.240 Got about a minute left here. It is focused on 0:16:01.840 --> 0:16:06.360 prospects for another interim deal between the US and Iran 0:16:07.080 --> 0:16:10.960 in terms of domestic political pressure on President Trump to 0:16:10.960 --> 0:16:11.720 get something done. 0:16:11.760 --> 0:16:13.040 How do you see this playing out? 0:16:14.560 --> 0:16:18.800 Well, I think the uncertainty and the unpredictability regarding the 0:16:18.840 --> 0:16:21.960 war and all of the statements that President Trump makes 0:16:21.960 --> 0:16:24.080 on a regular basis about how close we are to 0:16:24.120 --> 0:16:27.440 a deal not only doesn't do any favors to the markets, 0:16:27.440 --> 0:16:30.720 it also doesn't do any favors for Republican candidates who 0:16:30.720 --> 0:16:33.080 would like this war to be over by the midterms 0:16:33.120 --> 0:16:36.040 in November. It's unlikely that that's going to be the case. 0:16:36.080 --> 0:16:38.760 And as long as they're talking about a war that 0:16:38.960 --> 0:16:43.400 the overwhelming majority of Americans, including Republicans, do not support, 0:16:43.800 --> 0:16:45.920 they're going to be a fighting uphill terrain. 0:16:47.000 --> 0:16:49.520 Thank you for this, Really appreciate your insights this morning. 0:16:49.560 --> 0:16:53.360 That's Jennifer Lawless, professor of politics at the University of Virginia. 0:16:53.480 --> 0:16:57.600 Karen Nathan space Ike shares their down about eleven percent 0:16:57.720 --> 0:17:00.800 right now. That's right around a session low disclosed higher 0:17:00.800 --> 0:17:04.960 than expected spending on its artificial intelligence business, overshadowing it 0:17:05.000 --> 0:17:08.200 in aull, you're all quarterly rapport that broadly surpassed Wall 0:17:08.240 --> 0:17:11.200 Street forwardcast. We want to get reaction with Bloomberg News 0:17:11.240 --> 0:17:15.119 senior strategist Neil Campbling. Neil, good morning. Let's start with 0:17:15.160 --> 0:17:19.359 this investor reaction. So was the bar just set too high? 0:17:19.359 --> 0:17:23.320 What did investors need to hear that they didn't good morning. 0:17:23.760 --> 0:17:27.600 I think they would be happy with the three division's 0:17:28.400 --> 0:17:31.920 second quarterly sales data, but of course, as you mentioned, 0:17:32.000 --> 0:17:36.719 it's all about the cash burn levels. So capex very 0:17:36.760 --> 0:17:40.480 elevated at eighteen point three billion dollars. But I think 0:17:40.480 --> 0:17:43.960 the problem here is to a degree about investing full 0:17:43.960 --> 0:17:48.639 of future, and basically SpaceX needs to invest significantly on 0:17:48.680 --> 0:17:52.840 the CAPEX line going forward, suggesting that that CAPEX will 0:17:52.880 --> 0:17:55.879 remain at the same elevated levels for the rest of 0:17:55.920 --> 0:17:59.320 this year. So if you look at the numbers, they 0:17:59.359 --> 0:18:03.240 are low in absolute terms relative to the hyperscalers. So 0:18:03.320 --> 0:18:07.160 the four big hyperscalors combined will spend roughly a trillion 0:18:07.280 --> 0:18:11.040 dollars on Capex next year. So investors are left weight 0:18:11.160 --> 0:18:15.600 wanting to know where SpaceX can afford to compete, and 0:18:16.040 --> 0:18:18.080 whether they will need to come back to market at 0:18:18.119 --> 0:18:20.280 some point in the future to raise more capital. 0:18:20.880 --> 0:18:23.320 All right, we did hear from Elon Musk. He talked 0:18:23.359 --> 0:18:26.280 for what about an hour, and he made some bold predictions, 0:18:26.320 --> 0:18:29.719 including reaching one trillion dollars in revenue by twenty thirty. 0:18:30.119 --> 0:18:32.320 Was there anything that Musk hand to say in that 0:18:32.359 --> 0:18:33.560 car that caught your attention? 0:18:35.440 --> 0:18:38.840 That one trillion dollars certainly called my attention, particularly because 0:18:39.320 --> 0:18:42.720 most of that is expected to be driven really by 0:18:42.760 --> 0:18:48.000 the AI revenue now an AI currently small piece of 0:18:48.040 --> 0:18:51.639 the business, so whilst you have the other elements that 0:18:51.680 --> 0:18:54.320 are generating the cash flow, it's really a question of 0:18:54.400 --> 0:18:57.199 how you get to those numbers, and that is because 0:18:57.320 --> 0:19:01.639 they will require significant investment. So I think that's where 0:19:02.920 --> 0:19:06.640 we get used to the bold statements from Elon Musk, 0:19:06.880 --> 0:19:09.919 but it's and his very ambitious targets, But it's a 0:19:10.000 --> 0:19:12.200 question of how you pay to get to those kind 0:19:12.240 --> 0:19:15.920 of numbers. That remains the questions for investors, which in 0:19:15.960 --> 0:19:20.440 some respects the ambitions are of a startup type culture. 0:19:20.920 --> 0:19:24.240 But the company now being public means edit it gets 0:19:24.280 --> 0:19:27.280 marked to market if you like every quarter, but if. 0:19:27.200 --> 0:19:29.679 Some of this will it be held by this selling 0:19:29.720 --> 0:19:32.960 of his computing powdered power. And sorry, this is also 0:19:33.000 --> 0:19:35.919 a future play because it did talk about these deals 0:19:35.920 --> 0:19:39.359 it has with businesses like Google and Anthropics. So should 0:19:39.440 --> 0:19:42.199 investors also be taking more of a look at some 0:19:42.280 --> 0:19:45.600 of these deals that went into effect just recently, so 0:19:46.160 --> 0:19:48.880 this we might hear more about in future earnings reports. 0:19:49.960 --> 0:19:52.280 It's very true we've we've heard a similar type of 0:19:52.680 --> 0:19:56.120 comment out of Meta recently in terms of the potential 0:19:56.119 --> 0:19:59.000 of leasing out this compute power. I think one thing 0:19:59.000 --> 0:20:01.680 we need to remember is that in the cloud infy 0:20:01.720 --> 0:20:05.760 structured deals that Xai have struck with Anthropic and Google, 0:20:06.560 --> 0:20:09.680 Google themselves have referred to these these kind of partnerships 0:20:09.720 --> 0:20:14.520 as bridging solutions, which means that they can potentially have 0:20:14.840 --> 0:20:19.680 easy exit clauses. So whilst SpaceX is building out these 0:20:19.680 --> 0:20:24.280 compute capabilities, there is chances that the deals could be 0:20:24.440 --> 0:20:26.879 changed in terms of terms, or that they won't be 0:20:26.920 --> 0:20:30.560 able to scale significantly to sell that compute power quick enough. 0:20:30.760 --> 0:20:32.600 So's many questions that it raises here. 0:20:33.000 --> 0:20:36.040 All right, and just briefly, we have these lockups expiring, 0:20:36.160 --> 0:20:39.119 should we expect some volatility and the shares this week 0:20:39.160 --> 0:20:40.800 as a result, even more volatility. 0:20:40.840 --> 0:20:43.840 I should say, yes, it has been has been volatile. 0:20:44.359 --> 0:20:48.960 Some of the hedge funds have been borrowing stock to 0:20:49.720 --> 0:20:54.959 look to shortening the stock now as more stock becomes available, 0:20:55.200 --> 0:20:58.680 that actually might help reduce the volatility around the stock price. 0:20:59.040 --> 0:21:02.640 So whilst it may pressure the stock into those kind 0:21:02.640 --> 0:21:06.600 of stock sales, it could actually help longer term just 0:21:06.720 --> 0:21:09.920 by the where do those set of metrics around the hedgephones. 0:21:12.000 --> 0:21:15.440 This is Bloomberg Daybreak, your morning podcast on the stories 0:21:15.480 --> 0:21:18.520 making news from Wall Street to Washington and beyond. 0:21:18.800 --> 0:21:21.200 Look for us on your podcast feed by six am 0:21:21.200 --> 0:21:24.639 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:21:24.840 --> 0:21:27.680