Episode summary
New Front In Iran War; Big Tech Earnings Falter | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 16 min · Hosts: Eric Mollo
Summary
A widening Middle East conflict set the tone as Houthi militants claimed attacks on Saudi-linked shipping in the Red Sea, adding what one guest called a new front to the Iran war. The disruption raises the risk of another maritime chokepoint for energy flows just as oil prices climb and Brent crude moves back toward $100 a barrel, with traders focused on whether security conditions worsen or stabilize.
Markets were also reacting to big tech earnings that underscored how expensive the artificial intelligence race has become. Alphabet lifted its capital spending plan to as much as $205 billion this year, while Tesla said spending on AI and robotics surged and helped drive its first cash burn in two years. The host said investors are increasingly questioning fiscal discipline even as both companies argue that heavy investment is necessary.
Beyond tech and geopolitics, the program covered U.S. trade policy, Treasury yields near two-month highs, and the Federal Reserve’s upcoming decision. It also noted the ECB is expected to hold rates steady, while Uber said it cut jobs in customer service as part of an AI-driven simplification effort.
Key takeaways
- The host said Houthi attacks on Saudi-linked tankers could create a second shipping chokepoint after the Strait of Hormuz, raising oil-market risk.
- Alphabet raised 2026 capital spending to $195 billion to $205 billion, intensifying investor concern about the cost of the AI buildout.
- Tesla reported $5.8 billion of spending on AI and robotics and its first cash burn in two years, even as Elon Musk defended aggressive capex.
- The host said U.S. Treasury yields are near two-month highs as traders weigh higher oil prices, inflation risk and the Fed meeting next week.
- Uber said it cut 10% of customer service jobs, marking the company’s first layoffs explicitly tied to AI.
Notable quotes
“Effectively, the Houthis have now opened a new front in the US Iran war”
“They raised it to as much as 205 billion. It really speaks to the urgency of obtaining the chips and the infrastructure, the data centers that are needed to fulfill their AI ambitions”
“We should be spending on Capex as fast as we can spend as fast as we can without without it being too wasteful”
“The jump in yields reflects, among other things, the surge in oil prices. That's inflation, and it could force the Federal Reserve to raise interest rates”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. — Good morning. I'm Nathan Hager — And I'm Karen Moscow. Here are the stories we're following today. — Karen, we begin with a widening war in the Middle East. Iranbacked Houthi militants have claimed their first attack on commercial shipping in months, targeting two Saudi Arabian oil tankers in the Red Sea. It comes after the US carried out a 12th straight night of attacks on Iran's military sites. President Trump is not indicating he's ready to go back to the negotiating table.
They're not ready to make a deal because every time they make a deal, they want to change it and everything. They're not ready. They'll be ready very soon.
President Trump spoke at a rally in Marietta, Georgia. We get more from Bloomberg Middle East managing editor Paul Wallace in Dubai. Effectively, the Houthis have now opened a new front in the US Iran war.
Um, this comes about 3 days after the Houthis said uh effectively that they were going to attack ships calling at Saudi Arabian ports. Um, and this is extremely worrying for uh for not just the Saudi Arabians uh but for the US and its allies and the global oil market. Bloomberg's Paul Wallace reports.
The Red Sea had emerged as a key workaround for oil exports, particularly for Saudi Arabia with the Straight of Hormuz effectively shut down. Well, Nathan, as the conflict appears to be escalating, the House has passed a $95 billion budget plan to keep the war going. It's part of a two-step process that would let Republicans fasttrack $73 billion for the war without Democratic votes and billions more in aid to farmers hit by tariff retaliation and war related price increases.
House Speaker Mike Johnson was able to unite Republicans behind the bill.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- iran-backed houthi attacks
- red sea oil chokepoint
- alphabet capex outlook
- alphabet free cash flow
- tesla earnings and cash burn
Companies and tickers mentioned
- GOOGL
- GOOG
- TSLA
- Alphabet
- Tesla
Watch the episode
Watch “New Front In Iran War; Big Tech Earnings Falter | Bloomberg Daybreak: US Edition” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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