WEBVTT - US Completes Latest Iran Strikes, Alphabet/Tesla Earnings, More

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<v Speaker 1>News when you want it with Bloomberg News Now, I'm

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<v Speaker 1>Doug Prisner. The US military has completed its latest round

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<v Speaker 1>of strikes on Iran. On social media, Central commands said

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<v Speaker 1>US forces struck Iranian military targets with the aim of

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<v Speaker 1>further degrading Iran's ability to threaten civilian mariners and commercial

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<v Speaker 1>vessels transiting regional waters. Meantime, Huthi militants and Yemen said

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<v Speaker 1>they had targeted two Saudi oil tankers in the Red Sea.

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<v Speaker 1>All of this comes after the US and Iran signaled

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<v Speaker 1>they are not ready to return to the negotiating table now.

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<v Speaker 1>President Trump said earlier today the Islamic Republic will pay

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<v Speaker 1>a big price for the deaths of four service members

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<v Speaker 1>in the past week. He vowed that the US will

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<v Speaker 1>destroy one bridge or power plant anytime Iran's military shoots

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<v Speaker 1>a ship in the Strait of Horn Moves. Here is

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<v Speaker 1>Bloomberg's Chris Kennedy.

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<v Speaker 2>Oil traders are looking at some of the news that,

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<v Speaker 2>for instance, there aren't direct negotiations happening, which suggests that

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<v Speaker 2>we're going to be in this cycle at least for

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<v Speaker 2>a little bit longer. The President is clearly very frustrated

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<v Speaker 2>with the war. He is upset about the deaths of

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<v Speaker 2>service members, and he's looking to continue strikes for the

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<v Speaker 2>time being.

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<v Speaker 1>That is Bloomberg's Chris Kennedy. Meantime, the US is reportedly

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<v Speaker 1>beefing up forces in the Middle East. The Wall Street

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<v Speaker 1>Journal reports that in the past week, special operations forces

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<v Speaker 1>have been deployed to the region and bomber aircraft are

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<v Speaker 1>on high alert to ramp up their operations now. These

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<v Speaker 1>moves are designed to give President Trump more military options

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<v Speaker 1>to expand the war in Iran. Additionally, more than one

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<v Speaker 1>hundred and fifty medics have arrived at the launch Dual

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<v Speaker 1>Regional Medical Center in Germany in recent days. This hospital

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<v Speaker 1>is the primary location for treating troops injured in combat

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<v Speaker 1>in the Middle East. The US and Saudi Arabia have

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<v Speaker 1>finalized a deal on nuclear technology sharing. This will allow

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<v Speaker 1>American companies to build a uranium enrichment facility in Saudi

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<v Speaker 1>Arabia if a joint study determines it's necessary. Now. The

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<v Speaker 1>deal is expected to break from previous nuclear sharing agreements

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<v Speaker 1>that have barred the enrichment of uranium. This agreement could

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<v Speaker 1>face opposition in Congress due to concerns it could lead

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<v Speaker 1>to nuclear proliferation. It is a big day for tech earnings.

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<v Speaker 1>After the bell, Alphabet reported second quarter cloud revenue above

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<v Speaker 1>expectations and these results showed strong gains and users of

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<v Speaker 1>Alphabet's Gemini AI system. Alphabet also said its cloud backlog

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<v Speaker 1>grew to five hundred and fourteen billion dollars, powered by

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<v Speaker 1>strong demand for AI infrastructure and AI solutions. And we

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<v Speaker 1>got reaction from Daniel Flaxi's senior research analyst at Newburger.

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<v Speaker 3>What we're seeing is really this transformation of the digital

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<v Speaker 3>infrastructure led by AI and Google really has all of

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<v Speaker 3>the key assets, from the silicon to the models, the application,

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<v Speaker 3>all the solutions in the cloud.

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<v Speaker 1>That is Daniel flax from Newburger. But at the same

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<v Speaker 1>time today Alphabet raised its estimate on capital spending to

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<v Speaker 1>as much as two hundred and five billion dollars this year.

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<v Speaker 1>Shares in Alphabet are down by more than four percent

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<v Speaker 1>in late US trading. Tesla's second quarter earnings fell short

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<v Speaker 1>of Wall Street estimates adjusted EPs thirty three cents, that

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<v Speaker 1>is below the fifty one sense analyst to estimated. Tesla

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<v Speaker 1>also reported negative free cash flow of one point zero

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<v Speaker 1>nine billion dollars. Now, this quarter represents a setback for

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<v Speaker 1>Tesla as it looks to build out new lines of

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<v Speaker 1>business around robotics and autonomous vehicles. Here is John McNeil,

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<v Speaker 1>CEO of DVX Ventures.

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<v Speaker 4>This is not an AI investment story. This is a

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<v Speaker 4>story in the base business. And the base business I

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<v Speaker 4>think is giving hints that the product lineup is older,

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<v Speaker 4>it's dated, and in order to move that product, you've

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<v Speaker 4>got to discount it, and that hits the bottom line.

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<v Speaker 4>And that's exactly I think what we're seeing here in

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<v Speaker 4>these earnings.

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<v Speaker 1>John McNeil there, he is the CEO of DVX Ventures.

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<v Speaker 1>Shares and Tesla are down three percent in late US trading.

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<v Speaker 1>IBM cut its full year outlook for sales, including for

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<v Speaker 1>its closely watched software unit. Now, this adjustment came after

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<v Speaker 1>IBM reported a decline in demand for its mainframe business.

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<v Speaker 1>None of this was surprising those since last week, IBM's

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<v Speaker 1>preliminary earnings showed week sales for its infrastructure and associated

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<v Speaker 1>software businesses, and at that time IBM shares tumbled twenty

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<v Speaker 1>five percent. Right now, shares and IBM are down one

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<v Speaker 1>percent in late US trading. A revenue forecast from Texas

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<v Speaker 1>Instruments topped estimates. The company said sales are coming from

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<v Speaker 1>broad growth led by industrial, data center and automotive. TI

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<v Speaker 1>is the biggest maker of analog and embedded processing chips.

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<v Speaker 1>Shares and Texas Instruments are down about two point nine

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<v Speaker 1>percent in late New York trading. And external review of

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<v Speaker 1>the failure of Silicon Valley Bank is turning into a

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<v Speaker 1>high stakes political fight. We are told officials in the

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<v Speaker 1>Trump administration have privately discussed whether this review could provide

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<v Speaker 1>a legal basis to remove Governor Michael Barr from the

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<v Speaker 1>fed's board. You see, Barr was Vice Chair of Supervision,

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<v Speaker 1>the fed's top job in banking oversight, when SVB collapsed

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<v Speaker 1>back in twenty twenty three. Here is Bloomberg Salaa Mosen.

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<v Speaker 5>The reason we are hearing these things is that the

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<v Speaker 5>President Trump has said publicly that he would like a

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<v Speaker 5>quote majority on the FED Board of Governors. And if

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<v Speaker 5>bar one governor steps down and Trump is able to

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<v Speaker 5>appoint someone, and the Senate confirms that person, then he

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<v Speaker 5>will have his quote majority of governors who are aligned

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<v Speaker 5>with his own economic thinking.

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<v Speaker 1>That is Bloomberg Salaya Moson, Senator Elizabeth Warren is the

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<v Speaker 1>top Democrat on the Senate Banking Committee, and she has

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<v Speaker 1>suggested this review may be politically motivated, and now Warren

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<v Speaker 1>has asked the Fed's internal watchdog to investigate the ordering

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<v Speaker 1>of that review. President Trump's top trade and negociator, Jamison Greer,

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<v Speaker 1>told the Senate the US remains intent on tariffs as

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<v Speaker 1>it prepares to replace the duties that were struck down

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<v Speaker 1>by the Supreme Court. More from Bloomberg's Amy Morris.

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<v Speaker 6>In Washington, US Trade Representative Jamison Greer told lawmakers that

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<v Speaker 6>tariffs are here to stay even after the Supreme Court ruling,

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<v Speaker 6>because they'll find a way Since the ruling, the President

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<v Speaker 6>has already signed orders to impose a fifty percent tariff

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<v Speaker 6>on Canadian goods, plus the administration has proposed ten percent

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<v Speaker 6>tariffs on more than eighty countries. US Trade Representative Jamison Greer.

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<v Speaker 7>The specific authorities this administration is using have changed, but

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<v Speaker 7>the trade strategy has not. We are committed to continuing

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<v Speaker 7>to use tariffs and to negotiate deals to support the

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<v Speaker 7>reindustrialization of our economy, protect American workers, and increase their wages.

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<v Speaker 6>Lawmakers also grilled Greer on reimbursement of those tariffs for

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<v Speaker 6>small businesses and American consumers in Washington, Amy Moore as

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<v Speaker 6>Bloomberg Radio.

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<v Speaker 1>Paramounts Guidance's takeover of Warner Brothers Discovery one additional approval

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<v Speaker 1>from the European Union. The bloc's governing body, the European Commission,

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<v Speaker 1>said the deal no longer causes competition concerns since Paramount

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<v Speaker 1>agreed to end a distribution agreement with Universal Pictures in Europe.

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<v Speaker 1>Even so, this one hundred ten billion dollar deal is

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<v Speaker 1>still facing a lawsuit in the US. There is a

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<v Speaker 1>hearing set for early August to determine whether the acquisition

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<v Speaker 1>should be put on hold pending the outcome of a

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<v Speaker 1>full trial. And that is news when you want it

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<v Speaker 1>with Bloomberg News. Now, I'm Doug prisoner, and this is

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<v Speaker 1>Bloomberg