Bloomberg Daybreak: US Edition

Bloomberg Daybreak Weekend with Host Nathan Hager take a look at some of the stories we'll be tracking in the coming week.
In the US – we preview the Federal Reserve's rate decision and big tech earnings
In the UK – we look ahead to the Bank of England's upcoming rate decision
In Asia – we discuss the Golden Week holiday in Japan
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On today's podcast:

1) The US increased pressure on Iran with its naval blockade, as it seeks to get Tehran to agree to talks. The US naval operation has caused many Iran-linked vessels to turn around rather than go through the Hormuz strait, potentially affecting Iran's oil exports. Israel and Lebanon are set to extend a ceasefire for three weeks, according to President Donald Trump, who announced the deal in a social-media post after meeting Israeli and Lebanese envoys at the White House.

2) Intel delivered a sales forecast of $13.8 billion to $14.8 billion in the June quarter, exceeding Wall Street expectations of $13 billion. The company's upbeat outlook suggests that Chief Executive Officer Lip-Bu Tan is making progress on a challenging comeback plan, with Intel shares soaring 20% in extended trading. Intel's strong demand for processors used in AI systems is lifting demand for its flagship Xeon server processors, with Tan saying the company is "laser-focused" on increasing output from its factories to meet demand.

3) Spanish Prime Minister Pedro Sanchez said he’ll maintain cooperation with NATO allies and brushed off a report that US officials are considering suspending his country from the alliance for its stance on the Iran war. Sanchez told reporters that Spain "meets our obligations, we are a loyal partner" and that the country's position is "full cooperation with allies, but always within the framework of international law." The US is considering measures within the alliance in response to the stance of NATO allies, including Spain, on the Iran war, according to people familiar with the matter.
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Intel gave a strong sales forecast for the current period, signaling that the struggling chipmaker is finally beginning to benefit from the giant build-out of artificial intelligence infrastructure.

Revenue will be $13.8 billion to $14.8 billion in the quarter ending in June, the company said Thursday in a statement. Analysts, on average, estimated $13 billion, according to data compiled by Bloomberg. Earnings, excluding some items, will be about 20 cents a share, compared with a Wall Street prediction of 9 cents.

The upbeat outlook suggests that Chief Executive Officer Lip-Bu Tan is making progress on a challenging comeback plan. After lining up major investments in Intel last year — helping to strengthen the company’s balance sheet — Thursday’s results suggest he’s now delivering on a promise to improve its operations.

Intel shares rose 14% in extended trading. The stock had gained 81% this year before the results were released, closing at $66.78.

For instant reaction and analysis, Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec speak with:
Bloomberg Intelligence Senior Semiconductor Analyst Kunjan Sobhani
Bloomberg Tech co-host Ed Ludlow
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Today's top stories, with context, in just 15 minutes.
On today's podcast:
1) The US and Iran are locked in a battle for control of the Strait of Hormuz after failing to meet for a fresh round of peace talks, with both sides blocking the waterway to gain leverage during an extended ceasefire. The US is maintaining a naval blockade on ships going to and from Iran’s ports, which Iran calls a violation of the ceasefire, while Iran is keeping Hormuz closed to almost all other international traffic. The blockade and closure of the Strait of Hormuz have led to increased oil prices and concerns about supply shortages and a global inflation crisis
2) Navy Secretary John Phelan was fired after clashing with top leaders at the Pentagon, including over administration efforts to revive US shipbuilding. Phelan was pushed out after butting heads with Defense Secretary Pete Hegseth and Deputy Defense Secretary Stephen Feinberg over President Trump’s focus on a new US “Golden Fleet." Undersecretary Hung Cao will replace Phelan, according to Pentagon spokesman Sean Parnell, who said Phelan was stepping down “effective immediately."
3) Tesla anticipates billions of dollars in additional spending this year to support Elon Musk’s ambitions to transform the company into an AI and robotics company. Capital expenditures this year will exceed $25 billion, roughly three times last year’s outlay, to be put toward a dramatic expansion of factory operations and initiatives such as production of its Optimus humanoid robot. The investments will support production of key products including Cybercab, Semi and an updated version of its Megapack battery storage system, with Tesla remaining on track to start making these products.
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Tesla beat Wall Street’s profit expectations to start the year as the automaker said demand for its electric vehicles is rebounding around the globe, hinting at a possible recovery for its long-struggling automotive business.
Adjusted earnings rose to 41 cents a share in the first quarter, the company said Wednesday in a statement, higher than the 34-cent average of analyst estimates compiled by Bloomberg. It’s the second straight quarter Tesla’s earnings have exceeded expectations.
Tesla said it “saw continued growth in demand for our vehicles” in parts of Asia-Pacific and South America, along with a rebound in North America and the Europe-Middle East region. The surprisingly optimistic comments come several weeks after the automaker reported one of its worst quarters of auto sales in years.
For instant reaction and analysis, Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec speak with:
Steve Man, Bloomberg Intelligence Global Autos and Industrials Research Analyst
Ed Ludlow, Bloomberg Tech co-host
Ross Gerber, President and CEO at Gerber Kawasaki
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