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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, we begin with a widening war in the Middle East.

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Speaker 3: Iron backed who the militants have claimed their first attack

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Speaker 3: on commercial shipping in months, targeting two Saudi Arabian oil

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Speaker 3: tankers in the Red Sea. It comes after the US

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Speaker 3: carried out a twelfth straight night of attacks on.

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Speaker 4: Iran's military sites.

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Speaker 3: President Trump is not indicating he's ready to go back

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Speaker 3: to the negotiating table.

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Speaker 4: They're not ready to make a deal.

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Speaker 5: Because every time they make a deal they want to

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Speaker 5: change it and everything.

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Speaker 4: They're not ready. They'll be ready very soon.

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Speaker 3: President Trump spoke at a rally in Marietta, Georgia. We

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Speaker 3: get more from Bloomberg Middle East Managing editor Paul Wallace

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Speaker 3: in Dubai.

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Speaker 6: Effectively, the houthies have now opened a new front in

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Speaker 6: the US Iran war, and this comes about three days

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Speaker 6: off to the Hufi's said effectively that they were going

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Speaker 6: to attack ships calling at Saudi Arabian ports. And this

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Speaker 6: is extremely worrying for not just the Saudi Arabians, but

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Speaker 6: for the US and its allies, and the global oil market.

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Speaker 3: Bloomberg's Paul Walls reports the Red Sea had emerged as

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Speaker 3: a key workaround for oil exports, particularly for Saudi Arabia.

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Speaker 4: With the Strait of Hormuz effectively shut down.

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Speaker 2: Well Nathan, As the conflict appears to be escalating, the

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Speaker 2: Houses passed in ninety five billion dollar budget plan to

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Speaker 2: keep the war going. It's part of a two step

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Speaker 2: process that would let Republicans fast track seventy three billion

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Speaker 2: dollars for the war without Democratic votes and billions more

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Speaker 2: in aid to farmers hit by terraff retaliation and war

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Speaker 2: related price increases. How Speaker Mike Johnson was able to

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Speaker 2: unite Republicans behind the bill.

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Speaker 7: We continue to deliver for the people, and we're going

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Speaker 7: to continue that streak all the way through the end

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Speaker 7: of this year and into the next tigers.

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Speaker 2: How Speaker Mike Johnson spoke on Capitol Hill. No Democrats

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Speaker 2: voted for the measure. Party leaders say they plan to

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Speaker 2: make the vote a centerpiece of their campaign to retake

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Speaker 2: the House in November.

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Speaker 4: And the Senate.

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Speaker 3: Karen President Trump's top trade negotiator, Jamison Greer, says the

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Speaker 3: US will remain intent on tariffs as the Trump administration

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Speaker 3: prepares to replace the duties that the Supreme Court struck down.

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Speaker 4: Bloomberg Zamy Morris reports from Washington.

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Speaker 8: US Trade Representative Jamison Greer told lawmakers that tariffs are

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Speaker 8: here to stay even after the Supreme Court ruling, because

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Speaker 8: they'll find a way. Since the ruling, the President has

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Speaker 8: already signed orders to impose a fifty percent tariff on

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Speaker 8: Canadian goods, Plus the administration has proposed ten percent tariffs

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Speaker 8: on more than eighty countries. US Trade Representative Jamison Greer.

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Speaker 9: The specific authorities this administration is using have changed, but

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Speaker 9: the trade strategy has not. We are committed to continuing

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Speaker 9: to use tariffs and to negotiate deals to support the

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Speaker 9: reindustrialization of our economy, protect American workers, and increase their wages.

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Speaker 8: Lawmakers also grilled Greer on reimbursement of the terrace for

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Speaker 8: small businesses and American consumers in Washington.

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Speaker 4: Amy Morris Bloomberg Radio.

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Speaker 2: All right, Amy, thank you. He turned in the markets

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Speaker 2: now where futures are lower following a couple of high

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Speaker 2: profile tech earnings. So we begin with alphabet shares of

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Speaker 2: the Google parent. They are down three and a half

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Speaker 2: percent in early trading. The company is raising its capital

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Speaker 2: spending forecast to as much as two hundred and five

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Speaker 2: billion dollars this year and as reigniting concerns about a

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Speaker 2: lack of fiscal discipline and the race to dominate artificial intelligence.

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Speaker 2: Tom Giles is Bloomberg's executive editor for Technology.

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Speaker 10: We thought they were spending a lot before, and this

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Speaker 10: quarter they came out and said, hold my beer, we're

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Speaker 10: spending even more than we said. These are unprecedented numbers, hundreds.

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Speaker 4: Of billions of dollars.

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Speaker 10: They raised the two as much as two hundred and

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Speaker 10: five billion.

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Speaker 4: It really speaks to.

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Speaker 10: The urgency of obtaining the chips and the infrastructure, the

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Speaker 10: data centers that are needed to fulfill their AI ambitions, that.

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Speaker 4: Is the Google parent alphabet.

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Speaker 2: As far as earnings in the quarter, Bloomberg's Tom Giles

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Speaker 2: says Google's cloud revenue total to better than expected twenty

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Speaker 2: four and three quarter billion dollars. That was up eighty

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Speaker 2: two percent from a year earlier.

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Speaker 3: And Karen shares of Tesla are going in reverse as well.

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Speaker 3: This morning, they're down more than five percent. Profit tumbled

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Speaker 3: despite a strong quarter for the automotive business spending on

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Speaker 3: ambitious initiatives like robots and AI surged to five point

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Speaker 3: eight billion dollars, and that resulted in Tesla's first cash

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Speaker 3: burn in two years. The company still expects capital expenditures

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Speaker 3: in excess of twenty five billion this year. Here's CEO

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Speaker 3: Elon Musk on the company conference call.

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Speaker 5: We should be spending on capex as fast as we can,

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Speaker 5: spend as fast as we can without it without it

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Speaker 5: being too graceful. So I'm enough trying to aim for

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Speaker 5: like some extremely high efficient efficiency capital spend because that

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Speaker 5: would slow things down. So it's kind of it's a

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Speaker 5: balance between like how much cut yeah, capital efficiency.

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Speaker 3: Versus time and Tesla COEO Elon Musk also said he

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Speaker 3: could not comment on a possible merger with his other company, SpaceX.

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Speaker 6: Well, Nathan.

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Speaker 2: We also got earnings from IBM MA tech giant re

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Speaker 2: announcing an earning shortfall earlier this month, and now it

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Speaker 2: cut its full year sales out look, including for its

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Speaker 2: closely watched software unit. It's been a rough year for

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Speaker 2: Big Blue. IBM shares have declined thirty one percent this year,

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Speaker 2: including a twenty five percent drop in a single day

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Speaker 2: after the preliminary earnings were announced, and.

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Speaker 3: The big tech earnings continue this afternoon, Karen, when chipmaker

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Speaker 3: Intel reports its latest quarterly results, Let's get a preview

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Speaker 3: from Bloomberg Tom Busby.

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Speaker 11: After falling behind rivals like AMD and Nvidia, Intel has

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Speaker 11: roared back to life thanks to a turnaround effort aimed

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Speaker 11: at capitalizing on the boom in artificial intelligence spending and

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Speaker 11: rising demand for its Xeon server chips that helped make

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Speaker 11: up for a sluggish PC market hurt by a shortage

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Speaker 11: of memory chips. Bloomberg consensus calls for revenue of fourteen

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Speaker 11: point four to three billion dollars and adjusted earnings per

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Speaker 11: share of twenty one cents.

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Speaker 4: Tom Buzzby, Bloomberg Radio, All right, Tom, thank you.

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Speaker 2: US Treasury yields are trading your two month highs ahead

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Speaker 2: of next week's Fed decision, and Bloomberg's John Tucker joins

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Speaker 2: us with the latest.

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Speaker 4: John, Good morning, Good morning, Karen.

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Speaker 12: The jump in yields were flags, among other things, the

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Speaker 12: surgeon oil prices.

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Speaker 4: That's inflation.

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Speaker 13: Man.

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Speaker 12: It could force the Federal Reserve to raise interest rates.

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Speaker 12: Traders see roughly a thirty percent chance that is going

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Speaker 12: to raise rates at their policy meeting next week. You

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Speaker 12: also have to consider the strength of expected growth, the

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Speaker 12: higher cost of capital, the swelling government deficit, and the

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Speaker 12: investment boom in AI yields. On Tuesday, they were hired

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Speaker 12: by roughly two to five basis points across maturities, with

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Speaker 12: a tenure hitting the highest since late May, and so

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Speaker 12: far this year, the thirty year bond, the long bond

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Speaker 12: has traded beyond five percent for twenty eight days. That

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Speaker 12: is the longest stretch since the dawn of the financial crisis.

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Speaker 4: In New York. I'm John Tucker, Bloomberg Radio. All right, John,

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Speaker 4: thank you.

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Speaker 3: The FED decision might not be till next week, but

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Speaker 3: its decision day. In Europe, where the European Central Bank

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Speaker 3: is forecast to leave interest rates unchanged, policymakers are continuing

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Speaker 3: to assess the impact of renewed fighting in the Middle East.

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Speaker 3: Economists and traders expect the ECB to keep rates at

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Speaker 3: two and a quarter percent after raising borrowing costs at

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Speaker 3: their last meeting.

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Speaker 2: Well Nathan, the UK's new chancellor, says he will back businesses.

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Speaker 2: In his first major meeting with the City of London,

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Speaker 2: John Healey spoke to executives at Bloomberg's headquarters in London

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Speaker 2: this morning.

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Speaker 7: My message to British business is quite simple. To British businesses,

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Speaker 7: to British innovators, to British investors. I will back you

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Speaker 7: as your chancellor, and I'll back you in financial services,

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Speaker 7: in technology, in retail, in industry, in all parts of

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Speaker 7: the economy.

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Speaker 2: And John Healey succeeded Rachel Reeves as the UK's Finance

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Speaker 2: Minister after Andy Burnham took over as Prime Minister on Monday.

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Speaker 3: Man Caron Another signed this morning that artificial intelligence is

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Speaker 3: affecting the job market. Uber says it has cut ten

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Speaker 3: percent of jobs in its customer service operations. The right

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Speaker 3: hailing company says it's part of a broader effort to

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Speaker 3: simplify its ranks and quote embrace artificial intelligence.

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Speaker 4: Now.

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Speaker 3: This marks the first time Uber has tied layoffs to AI.

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Speaker 3: Businesses from financial services company Block to cloud provider Oracle

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Speaker 3: have cited the technology as a reason for job cuts

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Speaker 3: in recent months.

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Speaker 2: Time now for look at some of the other stories

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Speaker 2: making news in New York and around the world, and

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Speaker 2: for that we're joined by Bloomberg's Michael Barr.

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Speaker 14: Michael, good morning, Good morning, Karen New York Mayor's aroun

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Speaker 14: Mumdani and Council Speaker Julie Mennin are at odds over

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Speaker 14: the city's response to a legionnaire's disease outbreak. Menin is

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Speaker 14: calling it a failure and ma'm donnie is defending his

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Speaker 14: administration's actions. Mam Donnie has been criticized for spending time

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Speaker 14: on issues outside of his controls, such as calling for

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Speaker 14: the arrest of Israeli Prime Minister Benjamin at Yahoo. Meanwhile,

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Speaker 14: Menin highlighted key vaccines in the Health Department and a

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Speaker 14: lack of guidance for affected neighborhoods. Doctor Daniel Kablifski, an

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Speaker 14: infectious disease specialist with Mount Sinai, says legional bacteria can

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Speaker 14: spread when cooling towers release contaminated water particles into the

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Speaker 14: surrounding environment.

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Speaker 3: I think in terms of the number of cases that

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Speaker 3: we've seen, we are probably on the tail end of

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Speaker 3: the peak, so we're probably going to see decrease those

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Speaker 3: number of cases.

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Speaker 14: The legionnaire's outbreak on Manhattan's Upper east Side has grown

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Speaker 14: to at least five confirmed deaths and eighty two cases

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Speaker 14: confirmed ebola deaths. In Democratic Republic of Congo have prompted

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Speaker 14: a warning that the outbreak could become one of the

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Speaker 14: worst on record. Deaths have doubled in just over two weeks,

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Speaker 14: with the National Institute of Public Health reporting two five

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Speaker 14: hundred and thirty six cases and one thirty three deaths.

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Speaker 14: Doctors without Borders Trish Newport says the response is just

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Speaker 14: not big enough.

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Speaker 15: So if we don't have proper surveillance in place, if

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Speaker 15: we're not able to monitor every single person that was

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Speaker 15: in contact with a brigecase, every single person that's at

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Speaker 15: risk of developing the disease, if we're not able to

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Speaker 15: monitor this, the outbreak will continue.

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Speaker 4: Tris Newport.

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Speaker 14: With Doctors Without Borders, a modeling scout with close ties

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Speaker 14: to late sex offender Jeffrey Epstein has been found dead

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Speaker 14: at his French home. Daniel Siad was accused of raping

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Speaker 14: a Swedish model in France in nineteen ninety and was

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Speaker 14: one of the subjects of her probe into Epstein's links

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Speaker 14: in France. Global News twenty four hours a day and

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Speaker 14: whenever you want it with Bloomberg News Now not Michael

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Speaker 14: Barr and this is Bloomberg, Karen.

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Speaker 2: Thanks Michael, Time Now for our Bloomberg Sports Update, and

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Speaker 2: for that we bring in John stash Hour.

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Speaker 16: Thanks Karin. The streak is over. The Red Sox, in

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Speaker 16: the day part of a double header in Boston, scored

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Speaker 16: four runs in the first inning and beat Baltimore six

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Speaker 16: to three. That made it fifteen wins in a row,

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Speaker 16: ty in the club record that had been held since

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Speaker 16: nineteen forty six. Tried to break the record of the

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Speaker 16: night gap, but the Oriel scored four in the first

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Speaker 16: and one five to one. In New York, the Yankees

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Speaker 16: and Pirates also with a day night doubleheader. Pittsburgh won

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Speaker 16: five to three and ten Indians, and then the Yanks

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Speaker 16: got the split with a tune up in Winnows. Max

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Speaker 16: Fried returned from injury and through five scoreless Indians. That's

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Speaker 16: the Bloomberg Sports Update.

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Speaker 4: Stay with us.

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Speaker 2: More from Bloomberg Daybreak coming up after this.

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Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business Apple.

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Speaker 4: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.

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Speaker 3: The war in the Middle East appears to be expanding,

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Speaker 3: with the rounbacked Houthi militants claiming an attack on Saudi

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Speaker 3: oil tankers in the Red Sea, as President Trump indicates

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Speaker 3: he has no plans to let up on a Ron's

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Speaker 3: threat to the Straight of hor moves we don't.

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Speaker 6: Need the Hormone Street, but we do it because we

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Speaker 6: have to do it, because we.

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Speaker 2: Cannot let Iran have a nuclear weapons.

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Speaker 3: Verse I was President trumpet a rally and Marriott at

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Speaker 3: Georgia joining us from Istanbul this morning is Bloomberg Middle

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Speaker 3: East Breaking News editor Patrick Sikes. Patrick, give us more

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Speaker 3: details if you could on this reported hooth the attack

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Speaker 3: and the significant of potentially having strikes in the Red Sea.

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Speaker 4: Good morning morning.

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Speaker 13: Yes, we know that the Huthis have hit at least

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Speaker 13: one they claim two tankers, but we know they've hit

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Speaker 13: at least one refined products tanker in the south of

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Speaker 13: the Red Sea. That's been confirmed by the British Navy

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Speaker 13: as well. It's significant because it is the first time

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Speaker 13: they've successfully acted on this blockade on Saudi ports that

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Speaker 13: they announced a few days ago. That means that in

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Speaker 13: practice there is now a whole new front in the

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Speaker 13: Iran war, and it'll just amplify in the minds of

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Speaker 13: ship owners of traders the dangers of trying to do

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Speaker 13: business in that part of the world. They're now wrestling

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Speaker 13: with not just one choke point straight Orfward Moves being

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Speaker 13: effectively closed, but a second as well. So that means

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Speaker 13: if you wanted to get from the Saudi port of

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Speaker 13: Yamboo on the Red Sea to a crude buying market

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Speaker 13: in Asia, for example, you've now got a choice between

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Speaker 13: risking the passage through that very narrow strait control by

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Speaker 13: the Huthis, or going all the way into the med

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Speaker 13: and potentially all the way back around Africa. So it's

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Speaker 13: huge disruption for shipping that will add costs and create

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Speaker 13: logistical challenges even if ships are able to avoid the

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Speaker 13: security risk.

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Speaker 3: And just looking at the price action just this morning,

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Speaker 3: Brent crude is trading back close to one hundred dollars

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Speaker 3: a barrel. Once again, what are we hearing from market

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Speaker 3: participants about what the impact on the oil market could

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Speaker 3: be and where things could go from here?

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Speaker 13: Yeah, I think it underlines that with in particular this

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Speaker 13: opening of a second front, the risk for shipping that

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Speaker 13: it creates. It brings us back into the much more

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Speaker 13: highly escalated territory that we were in at the height

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Speaker 13: of the war back in March April kind of time.

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Speaker 13: How far that goes really depends on the duration of

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Speaker 13: the disruption. Right, if the US strikes that have so

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Speaker 13: far been trying to degrade Iran's ability to threaten the

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Speaker 13: straight orform is to reach some kind of breakthrough, or

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Speaker 13: if some other kind of security assurance guarantee was to

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Speaker 13: be provided that would alleviate some of those security concerns them,

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Speaker 13: we would see more product coming through to market and

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Speaker 13: in turn the price coming down in line with that.

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Speaker 13: But for now is the opposite. We're seeing only increased risks,

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Speaker 13: and there seems to be no for the moment assurance

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Speaker 13: on the security side that would alloy those risks.

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Speaker 2: This is Bloomberg Daybreak, your morning podcast on the stories

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Speaker 2: making news from Wall Street to Washington and beyond.

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Speaker 4: And I'm Nathan Hager.

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