Speaker 1: News when you want it with Bloomberg News Now, I'm
Speaker 1: Doug Prisner. The US military has completed its latest round
Speaker 1: of strikes on Iran. On social media, Central commands said
Speaker 1: US forces struck Iranian military targets with the aim of
Speaker 1: further degrading Iran's ability to threaten civilian mariners and commercial
Speaker 1: vessels transiting regional waters. Meantime, Huthi militants and Yemen said
Speaker 1: they had targeted two Saudi oil tankers in the Red Sea.
Speaker 1: All of this comes after the US and Iran signaled
Speaker 1: they are not ready to return to the negotiating table now.
Speaker 1: President Trump said earlier today the Islamic Republic will pay
Speaker 1: a big price for the deaths of four service members
Speaker 1: in the past week. He vowed that the US will
Speaker 1: destroy one bridge or power plant anytime Iran's military shoots
Speaker 1: a ship in the Strait of Horn Moves. Here is
Speaker 1: Bloomberg's Chris Kennedy.
Speaker 2: Oil traders are looking at some of the news that,
Speaker 2: for instance, there aren't direct negotiations happening, which suggests that
Speaker 2: we're going to be in this cycle at least for
Speaker 2: a little bit longer. The President is clearly very frustrated
Speaker 2: with the war. He is upset about the deaths of
Speaker 2: service members, and he's looking to continue strikes for the
Speaker 2: time being.
Speaker 1: That is Bloomberg's Chris Kennedy. Meantime, the US is reportedly
Speaker 1: beefing up forces in the Middle East. The Wall Street
Speaker 1: Journal reports that in the past week, special operations forces
Speaker 1: have been deployed to the region and bomber aircraft are
Speaker 1: on high alert to ramp up their operations now. These
Speaker 1: moves are designed to give President Trump more military options
Speaker 1: to expand the war in Iran. Additionally, more than one
Speaker 1: hundred and fifty medics have arrived at the launch Dual
Speaker 1: Regional Medical Center in Germany in recent days. This hospital
Speaker 1: is the primary location for treating troops injured in combat
Speaker 1: in the Middle East. The US and Saudi Arabia have
Speaker 1: finalized a deal on nuclear technology sharing. This will allow
Speaker 1: American companies to build a uranium enrichment facility in Saudi
Speaker 1: Arabia if a joint study determines it's necessary. Now. The
Speaker 1: deal is expected to break from previous nuclear sharing agreements
Speaker 1: that have barred the enrichment of uranium. This agreement could
Speaker 1: face opposition in Congress due to concerns it could lead
Speaker 1: to nuclear proliferation. It is a big day for tech earnings.
Speaker 1: After the bell, Alphabet reported second quarter cloud revenue above
Speaker 1: expectations and these results showed strong gains and users of
Speaker 1: Alphabet's Gemini AI system. Alphabet also said its cloud backlog
Speaker 1: grew to five hundred and fourteen billion dollars, powered by
Speaker 1: strong demand for AI infrastructure and AI solutions. And we
Speaker 1: got reaction from Daniel Flaxi's senior research analyst at Newburger.
Speaker 3: What we're seeing is really this transformation of the digital
Speaker 3: infrastructure led by AI and Google really has all of
Speaker 3: the key assets, from the silicon to the models, the application,
Speaker 3: all the solutions in the cloud.
Speaker 1: That is Daniel flax from Newburger. But at the same
Speaker 1: time today Alphabet raised its estimate on capital spending to
Speaker 1: as much as two hundred and five billion dollars this year.
Speaker 1: Shares in Alphabet are down by more than four percent
Speaker 1: in late US trading. Tesla's second quarter earnings fell short
Speaker 1: of Wall Street estimates adjusted EPs thirty three cents, that
Speaker 1: is below the fifty one sense analyst to estimated. Tesla
Speaker 1: also reported negative free cash flow of one point zero
Speaker 1: nine billion dollars. Now, this quarter represents a setback for
Speaker 1: Tesla as it looks to build out new lines of
Speaker 1: business around robotics and autonomous vehicles. Here is John McNeil,
Speaker 1: CEO of DVX Ventures.
Speaker 4: This is not an AI investment story. This is a
Speaker 4: story in the base business. And the base business I
Speaker 4: think is giving hints that the product lineup is older,
Speaker 4: it's dated, and in order to move that product, you've
Speaker 4: got to discount it, and that hits the bottom line.
Speaker 4: And that's exactly I think what we're seeing here in
Speaker 4: these earnings.
Speaker 1: John McNeil there, he is the CEO of DVX Ventures.
Speaker 1: Shares and Tesla are down three percent in late US trading.
Speaker 1: IBM cut its full year outlook for sales, including for
Speaker 1: its closely watched software unit. Now, this adjustment came after
Speaker 1: IBM reported a decline in demand for its mainframe business.
Speaker 1: None of this was surprising those since last week, IBM's
Speaker 1: preliminary earnings showed week sales for its infrastructure and associated
Speaker 1: software businesses, and at that time IBM shares tumbled twenty
Speaker 1: five percent. Right now, shares and IBM are down one
Speaker 1: percent in late US trading. A revenue forecast from Texas
Speaker 1: Instruments topped estimates. The company said sales are coming from
Speaker 1: broad growth led by industrial, data center and automotive. TI
Speaker 1: is the biggest maker of analog and embedded processing chips.
Speaker 1: Shares and Texas Instruments are down about two point nine
Speaker 1: percent in late New York trading. And external review of
Speaker 1: the failure of Silicon Valley Bank is turning into a
Speaker 1: high stakes political fight. We are told officials in the
Speaker 1: Trump administration have privately discussed whether this review could provide
Speaker 1: a legal basis to remove Governor Michael Barr from the
Speaker 1: fed's board. You see, Barr was Vice Chair of Supervision,
Speaker 1: the fed's top job in banking oversight, when SVB collapsed
Speaker 1: back in twenty twenty three. Here is Bloomberg Salaa Mosen.
Speaker 5: The reason we are hearing these things is that the
Speaker 5: President Trump has said publicly that he would like a
Speaker 5: quote majority on the FED Board of Governors. And if
Speaker 5: bar one governor steps down and Trump is able to
Speaker 5: appoint someone, and the Senate confirms that person, then he
Speaker 5: will have his quote majority of governors who are aligned
Speaker 5: with his own economic thinking.
Speaker 1: That is Bloomberg Salaya Moson, Senator Elizabeth Warren is the
Speaker 1: top Democrat on the Senate Banking Committee, and she has
Speaker 1: suggested this review may be politically motivated, and now Warren
Speaker 1: has asked the Fed's internal watchdog to investigate the ordering
Speaker 1: of that review. President Trump's top trade and negociator, Jamison Greer,
Speaker 1: told the Senate the US remains intent on tariffs as
Speaker 1: it prepares to replace the duties that were struck down
Speaker 1: by the Supreme Court. More from Bloomberg's Amy Morris.
Speaker 6: In Washington, US Trade Representative Jamison Greer told lawmakers that
Speaker 6: tariffs are here to stay even after the Supreme Court ruling,
Speaker 6: because they'll find a way Since the ruling, the President
Speaker 6: has already signed orders to impose a fifty percent tariff
Speaker 6: on Canadian goods, plus the administration has proposed ten percent
Speaker 6: tariffs on more than eighty countries. US Trade Representative Jamison Greer.
Speaker 7: The specific authorities this administration is using have changed, but
Speaker 7: the trade strategy has not. We are committed to continuing
Speaker 7: to use tariffs and to negotiate deals to support the
Speaker 7: reindustrialization of our economy, protect American workers, and increase their wages.
Speaker 6: Lawmakers also grilled Greer on reimbursement of those tariffs for
Speaker 6: small businesses and American consumers in Washington, Amy Moore as
Speaker 6: Bloomberg Radio.
Speaker 1: Paramounts Guidance's takeover of Warner Brothers Discovery one additional approval
Speaker 1: from the European Union. The bloc's governing body, the European Commission,
Speaker 1: said the deal no longer causes competition concerns since Paramount
Speaker 1: agreed to end a distribution agreement with Universal Pictures in Europe.
Speaker 1: Even so, this one hundred ten billion dollar deal is
Speaker 1: still facing a lawsuit in the US. There is a
Speaker 1: hearing set for early August to determine whether the acquisition
Speaker 1: should be put on hold pending the outcome of a
Speaker 1: full trial. And that is news when you want it
Speaker 1: with Bloomberg News. Now, I'm Doug prisoner, and this is
Speaker 1: Bloomberg