Iran Conflict Drives Oil Prices Up as US Shipbuilding Gets Major Boost

THIS IS "BLOOMBERG BUSINESSWEEK DAILY." REPORTING FROM THE MAGAZINE THAT HELPS GLOBAL LEADERS STAY AHEAD. WITH INSIGHT ON THE PEOPLE, COMPANIES, AND TRENDS SHAPING TODAY'S COMPLEX ECONOMY. PLUS, GLOBAL BUSINESS, FINANCE, AND TECH NEWS AS IT HAPPENS. "BLOOMBERG BUSINESSWEEK DAILY" WITH CAROL MASSAR AND TIM STENOVEC LIVE ON BLOOMBERG RADIO, TELEVISION, AND BLOOMBERG ORIGINALS. CAROL: GOOD AFTERNOON, EVERYBODY. WE ARE ACROSS BLOOMBERG PLATFORMS, AND WE ARE "BLOOMBERG BUSINESSWEEK DAILY." IT IS THURSDAY, JULY 23, 2026. STOCKS UNDER PRESSURE, U.S.

TREASURY YIELDS UP. CAN I JUST LAY IT OUT THERE? I'M OBSESSED BY THIS COLUMN FROM OUR OWN SIMON WHITE, ABOUT HOW THE MOST FUNDAMENTAL MACRO RISK IS BACK, RISING INFLATION VOLATILITY SPURRED BY A SURGEON OIL -- SURGE IN OIL. HE SAYS ALL OF THIS IS SET TO TRIGGER EARNINGS DISAPPOINTMENTS, WIDER CREDIT SPREADS, AND MORE VARIABILITY WHEN IT COMES TO STOCK AND BOND PRICES. IT MAKES INVESTORS RETHINK EVALUATIONS IN A HIGHER RATE ENVIRONMENT WHICH WE ARE SEEING. SOMETHING DON'T LOOK AS ATTRACTIVE. TIM: LOOK NO FURTHER THAN THE MAGNIFICENT 7. TOTAL RETURN INDEX FROM BLOOMBERG IS TODAY FOLLOWING BY MORE THAN ANY TIME GOING BACK

TO APRIL 10 OF 2025. THAT WAS A LIBERATION DAY. MAG 7 RE-THINK FOR THOSE COMPANIES INCLUDING AI SPENDING, TESLA. CAROL: THIS AS WE GET READY FOR ANOTHER ROUND OF TARIFFS. WE WILL USE THAT AS A BIG THEME TODAY, NEXT 60 MINUTES, REALLY THREE HOURS. WE ARE ALSO KEEPING AN EYE ON ALPHABET AND TESLA AS THE MAG 7, LOTS OF EARNINGS NEXT WEEK. WE ARE SEEING THE TRADE TODAY. IN TERMS OF WHAT MIGHT BE THE ULTIMATE MACRO RISK IN THIS RISING VARIABILITY WHEN IT COMES TO INFLATION, JEFFREY ROSENBERG IS THE SENIOR PORTFOLIO MANAGER OF SYSTEMATIC FIXED INCOME OVER AT BLACK ROCK. WE WILL TALK INFLATION, THE FED, POTENTIALLY A PERSISTENTLY AND HIGHER VOLATILITY. TIM: ANOTHER PART OF THE WORLD HAS TO DO WITH RHE

INDUSTRIALIZATION WHEN IT COMES TO THE UNITED STATES. HOW DOES ONE REALLY BUILD SHIPS IN AMERICA? IT'S A QUESTION THAT WE WILL POSE TO THE CEOS OF SIEMENS DIGITAL SOFTWARE AND HD HYUNDAI POWER TRANSFORMERS, ABOUT THEIR DEAL ANNOUNCED TODAY. CAROL: CURIOUS BECAUSE SHARE PRICE HAS BEEN PULLING BACK. CURIOUS WHAT HIS HEARING FROM THE INVESTOR BASE. TIM: FIRST UP, A CHECK ON THE DAY'S TRADE AND TAUGHT BUSINESS STORIES. CHARLIE: STOCKS LOWER, OIL HIGHER, LOOKING AT FOUR FACTORS FOR THE SELLOFF. WE HAVE AI SPENDING, WAR JITTERS, HIGHER OIL PRICES. LET'S GET TO THE NUMBERS. WE ARE OFF SESSION LOWS BUT STILL A DOWN DAY ON THE S&P, DOWN 104.

S&P 500 INDEX DOWN ONE.4%. THE DOW INDUSTRIALS DOWN 614, DROP OF ONE POINT 2%. NASDAQ COMPOSITE INDEX DOWN BY 590 POINTS, DECLINE OF 2.3 PERCENT. NASDAQ 100 INDEX DOWN 2%. THE BLOOMBERG MAG 7 INDEX IS NOW DOWN 4.7 PERCENT. LAST NIGHT WE HEARD FROM TWO OF THE SEVEN MEMBERS, ALPHABET, DOWN BY 6.4 PERCENT. TESLA SELLING OFF RIGHT NOW, DOWN BY 14.2%. 10-YEAR YIELDING 4.70%. 2-YEAR, 4.35%. 10-YEAR, 5.17%. SPOT GOLD DOWN 2.1%. 4042 THE OUNCE.

93.23 A BARREL ON WTI. BRENT CLOSING IN ON 102. BRENT CRUDE SURGING BY 8.1%. FOR THE FIRST TIME IN 10 YEARS, THE UNITED NATIONS IS SET FOR A LEADERSHIP CHANGE. JOIN US AT FIVE:00 EASTERN WALL STREET TIME FOR A SPECIAL TOWN HALL WITH CANDIDATES SEEKING TO BECOME THE NEXT U.N. SECRETARY GENERAL, DISCUSSING THEIR PRIORITIES AS THE UNITED NATIONS CONFRONTS MOUNTING GLOBAL CHALLENGES, ALL OF THIS LIVE FROM U.N. HEADQUARTERS RIGHT HERE ON BLOOMBERG, FIVE:00 WALL STREET TIME. S&P 500 INDEX DOWN ONE.4%. WEST TEXAS INTERMEDIATE CRUDE OIL, UP 7.3%. LOTS GOING ON. THAT IS A BLOOMBERG BUSINESS FLASH. CAROL: CERTAINLY IS, YOU ARE KEEPING US UP-TO-DATE ON ALL OF IT.

INCLUDING WHEN IT COMES TO THE U.S. WAR IN IRAN. CHARLIE TALKING ABOUT A SURGE IN OIL SPURRED BY THE ESCALATING IRAN MORE, SENDING STOCKS AND BONDS LOWER. U.S. TREASURY YIELDS MOVING UP. WALL STREET ALSO RATTLED BY CONCERNS ABOUT WHETHER MASSIVE ARTIFICIAL INTELLIGENCE INVESTMENTS WILL PAY OFF. THIS IS A NARRATIVE THAT WE HAVE SEEN FOR THE LAST YEAR OR SO. TIM: THE AI PART OF IT. THE WAR PART OF IT SINCE FEBRUARY. IN AN INTERVIEW WITH AXIOS, THE PRESIDENT THREATENED TO STEP UP STRIKES ON IRAN.

POTENTIALLY WIDENING U.S. INVOLVEMENT IN THE MIDDLE EAST. I THOUGHT TWO WEEKS AGO WE WERE DE-ESCALATING, BUT THAT IS NOT WHAT IS HAPPENING OVER THE LAST 12 DAYS. TIM: LET'S CAROL: LET'S MAKE SENSE OF IT WITH CHRIS KENNEDY, ECONOMIC STATECRAFT A LEAD. CHRIS, I FEEL LIKE WE ARE ALL A LITTLE BIT CONFUSED. PRESIDENT TRUMP EARLIER ON THE U.S. WAR WITH IRAN HIGHLIGHTED -- GO BACK TO THE BEGINNING, HOW THEY KNOCKED OUT SO MANY OF THE CAPABILITIES IN IRAN, BASICALLY WIPING OUT SO MUCH OF IRAN'S CAPABILITIES. YET, HERE WE ARE, THE PRESIDENT STEPPING UP STRIKES ON IRAN. WHAT ARE THEY GOING AFTER AT THIS POINT, WHAT CAPABILITIES ARE GOOD TO BE DESTROYED, AND

DOES THAT MEAN THAT THERE WAS NOT THAT MUCH DAMAGE EARLIER? I'M TRYING TO UNDERSTAND. HE WANTS TO PUT PRESSURE. IS IT JUST TAUGHT, IS THERE MORE TO BE DONE? WHAT DOES HE WANT TO SEE IN TERMS OF DAMAGE TO IRAN? CHRIS: THANKS, CAROL. CAROL: SORRY. CHRIS: THE ANSWER IS HE IS CLEARLY LOOK FOR SOME SORT OF CAPITULATION ON THE PART OF THE IRANIANS. YES, THERE HAVE BEEN A NUMBER OF STRIKES. THE PRESIDENT HAS CLAIMED IRAN'S NAVY IS DESTROYED, WE HAVE TAKEN OUT ITS MISSILE STOCKPILES. CLEARLY THIS ISN'T THE CASE. IRAN IS A LARGE COUNTRY, HAS BEEN PREPARING FOR A MOMENT LIKE THIS FOR A VERY LONG TIME. THEY ARE CLEARLY ALSO NOT IN A

POSITION YET WHERE THEY FEEL LIKE THEY NEED TO CAPITULATE. NOW WE HAVE SEEN THEY HAVE SUCCESSFULLY RECRUITED THE WITH THESE -- THE HOUTHIS INTO ATTACKING SHIPS IN THE RED SEA, PUTTING PRESSURE ON GLOBAL MARKETS. WE DO EXPECT THESE TRICKS TO CONTINUE AND PERHAPS ACCELERATE IF TRUMP'S THREATS ARE TO BE BELIEVED. PERHAPS SIGNIFICANT STRENGTHS THIS EVENING. TIM: ON THAT, YOU TALK NOT ABOUT THE APPETITE BUT MAYBE THE RUNWAY THAT IRAN'S LEADERS HAVE FOR THIS. WHAT ABOUT THE AMERICAN PUBLIC? IT IS AN UNPOPULAR WAR, THERE WAS THE TRAGEDY LAST WEEK WHERE SEVERAL SERVICE MEMBERS WERE KILLED IN STRIKES ON AMERICAN BASES, THEN THE POLITICAL SIDE OF THIS.

WE SPOKE ABOUT THIS YESTERDAY, BUT WE ARE GETTING ADDITIONAL NEWS OVER AT GAS BUDDY, WE COULD SEE $5.50 DIESEL IN THE NEXT FEW WEEKS, NATIONAL AVERAGE OF $4.40 A GALLON WITH GAS. WHAT IS THE AMERICAN APPETITE FOR THIS RIGHT NOW? CHRIS: LOOKING AT POLLING, THE CONFLICT IS NOT DOING WELL IN THE EYES OF THE AMERICAN PUBLIC. OF COURSE, GAS AND DIESEL PRICES ARE GOING TO BE ONE OF THE BIG DRIVERS OF SENTIMENT, AS WE ARE ONLY A FEW MONTHS OUT OF MIDTERM ELECTIONS. WE SHOULD EXPECT GAS AND DIESEL PRICES WILL CONTINUE TO RISE. WE SAW A PAUSE, BUT NO OIL PRICES ARE ABOVE $100 A BARREL, WE WILL SEE INCREASED EXPORT

PRESSURE ON US STOCKPILES OF CRUDE AND OTHER PRODUCTS AS THE REST OF THE WORLD LOOKS TO THE U.S. AS THE SUPPLIER OF LAST RESORT. IT WILL BE SOME TIME FOR THIS RECENT ESCALATION TO TRANSMIT THROUGH TWO PRICES, BUT THEY WILL CONTINUE TO RISE AS THAT HAPPENS. CAROL: I AM OBSESSED WITH THIS COLUMN FROM SIMON. IF YOU ARE LISTENING. THIS IDEA OF THE MOST FUNDAMENTAL RISK IS BACK, RISING INFLATION, VOLATILITY SET TO TRIGGER EARNINGS DISAPPOINTMENTS, WIDER CREDIT SPREADS, MORE VARIABILITY WHEN IT COMES TO STOCK AND BOND PRICES. WE ARE LESS THAN ONE WEEK AWAY FROM THE FED DECISION. ARE YOU INCREASINGLY HEARING THAT THE WORLD'S ECONOMIES ARE WORRIED ABOUT THIS RISING

INFLATION VOLATILITY WHICH HAS IMPLICATIONS FOR EVERYTHING IN OUR WORLD? CHRIS: I THINK SO. THERE IS THE FED MEETING, AND I THINK THE FED WILL BE INCLINED TO CONSIDER RAISING RATES, ESPECIALLY CONSIDERING THE JOB MARKET IS STRONG IN THE U.S. THIS IS A GREAT COLUMN. NOT JUST INFLATION, BUT THE VOLATILITY IN INFLATION, AND THIS HAS KNOCK ON EFFECTS ON THE U.S. ECONOMY. CONSUMERS WILL DELAY PURCHASES OF ESPECIALLY LARGE DURABLE GOODS, PERHAPS SEE CREDIT SPREADS INCREASE, AND THAT COULD UNDERMINE THE AI ECONOMY. SO MUCH OF THIS IS BUILT ON THE BUILDOUT OF THESE DATA CENTERS, DEBT DRIVEN.

INFLATION VOLATILITY IS REACHING LEVELS LAST SEEN IN 2023. IT DOESN'T SHOW ANY SIGNS OF LETTING UP AT THIS POINT. CAROL: THERE IS A SUPERLATIVE. EVERYONE ENJOY YOUR THURSDAY. ALWAYS APPRECIATE YOUR ANALYSIS. CHRIS KENNEDY IS ECONOMIC STATECRAFT LEAD FROM D.C. WE HAVE A PROGRAMMING NOTE. TIM: THE UNITED NATIONS IS SET FOR A LEADERSHIP CHANGE. JOIN BLOOMBERG AT 5:00 FOR A SPECIAL U.N. TOWN HALL, AS THE U.N. CONFRONTS MOUNTING GLOBAL CHALLENGES. IT IS THE U.N. TOWN HALL COME THE NEXT SECRETARY-GENERAL LIVE ON BLOOMBERG RADIO, BLOOMBERG TV, BLOOMBERG BUSINESS APP.

IT IS ORGANIZED BY THE OFFICE OF THE PRESIDENT OF THE GENERAL ASSEMBLY WITH THE SUPPORT OF BLOOMBERG. CAROL: WE WILL STAY ON GEOPOLITICS AND WHAT IT MEANS FOR GLOBAL MARKETS. INFLATION CONCERNS CONTINUING TO MAKE INVESTORS NERVOUS, ULTIMATE MACRO RISK, HOW IT IMPACTS EVERYTHING IN OUR WORLD, WHETHER IT IS GOODS, PRICING, BORROWING RATES, CASH FLOWS. AS IT BECOMES MORE UNCERTAIN, WHEN THE PURCHASING POWER OF MONEY BECOMES MORE UNSTABLE. CURIOUS WHAT OUR NEXT GUEST SAYS ABOUT THAT. DELIGHTED TO HAVE WITH US JEFFREY ROSENBERG, SENIOR PORTFOLIO MANAGER OF SYSTEMATIC FIXED INCOME OVER AT BLACKROCK, WHICH BY THE WAY REPORTED A RECORD 15.3 TRILLION DOLLARS IN ASSETS UNDER MANAGEMENT.

GREAT TO HAVE YOU HERE WITH US. JEFFREY: GREAT TO BE HERE, THANKS FOR HAVING US. CAROL: I WANT TO JUMP INTO THIS IDEA OF RISING INFLATION VOLATILITY SET TO TRIGGER MORE VARIABILITY WHEN IT COMES TO STOCK AND BOND PRICES. IS IT THE ULTIMATE MACRO RISK IN YOUR VIEW? JEFFREY: IT IS ONE OF THE BIGGEST CHALLENGES INVESTORS FACE FOR ANOTHER ELEMENT THAT YOU DIDN'T QUITE CAPTURE, WHICH IS THE RELATIONSHIP BETWEEN STOCK AND BOND RETURNS. THAT RELATIONSHIP HAS FUNDAMENTALLY SHIFTED RELATIVE TO THE ONE THAT EXISTED PRE-COVID. THAT IS THAT STOCK AND BOND RETURNS ARE MUCH MORE POSITIVELY CORRELATED. INVESTORS HAVE LOST A FORM OF DIVERSIFICATION. ON THE BOND SIDE OF THE EQUATION, IT'S BEEN REALLY IMPORTANT, UNFORTUNATE LOSS,

THEY HAVE LOST INSURANCE THAT USED TO PAY FOR ITSELF. THIS IS ENTIRELY RELATED TO INFLATION, INFLATION VOLATILITY, INFLATION SHOCKS, THE IDEA THAT WE ARE GOING ON FIVE YEARS OF ABOVE TARGET INFLATION. WHEN YOU ARE ABOVE TARGET IN TERMS OF INFLATION, IT UNDERMINES THE BOND MARKET'S BELIEVE THAT THE FED IS UNBRIDLED IN ITS ABILITY TO SUPPORT EQUITY MARKET, EQUITY MARKET PORTFOLIOS WHEN THEY NEED IT THE MOST, WHEN THERE IS A DECLINE IN EQUITIES. THAT IS WHAT YOU ARE SEEING RIGHT NOW IN TERMS OF THE CHALLENGES FROM THE RECENT DEVELOPMENTS IN THE MIDDLE EAST AROUND OIL PRICES, OIL UNCERTAINTY FEEDING INTO INFLATION UNCERTAINTY. THAT IS LEADING TO HIGHER BOND YIELDS AND LOWER BOND PRICES,

AT A TIME WHEN EQUITIES ARE HAVING THEIR OWN CHALLENGE. YOU HAVE LOST THAT DIVERSIFICATION, AND THAT IS A HUGE LOSS, SOMETHING WE SPENT A LOT OF TIME TRYING TO PROVIDE SOLUTIONS FOR. IN THIS MACRO CONTEXT, IT IS ONE OF THE BIGGEST ISSUES THAT INVESTORS FACE. TIM: IT'S A CHALLENGE FOR INVESTORS, BUT SO, TO FOR KEVIN WARSH NEXT WEEK. HIS SECOND MEETING AS CHAIR OF THE FEDERAL RESERVE. WHAT DOES THE FED CHAIR HAVE TO DO NEXT WEEK TO APPEASE INVESTORS AND ALSO APPEASE THE PRESIDENT? JEFFREY: IT IS AN INCREDIBLY IMPORTANT TIME.

WE JUST DRAW BACK A LITTLE BIT FROM THE HEADLINES OF THE DAY AND THE WEEK, A BIGGER STORY AROUND THE SIGNIFICANT CHANGES IN THIS MOMENT IN HISTORY THAT WARSH REPRESENTS FOR THE OUTLOOK OF THE FEDERAL RESERVE. THE REPORT YOU MENTIONED, OUR THIRD QUARTER BLACKROCK FIXED INCOME OUTLOOK PIECE. WE GO INTO MORE DETAILS IN THAT. ONE OF THE MOST IMPORTANT THINGS I'M HIGHLIGHTING IN THE PIECE, AND IT'S A PIECE WITH A LOT OF CONTRIBUTIONS FROM MY COLLEAGUES. IT IS NOT JUST US AND BLACKROCK SYSTEMATIC BUT THE ENTIRE BREADTH FIXED INCOME INVESTORS. ONE OF THE THINGS I'M HIGHLIGHTING IS THIS IMPORTANCE THAT KEVIN WARSH TALKED ABOUT IN TERMS OF TRYING TO RESTORE THE RELATIONSHIP BETWEEN THE

FEDERAL RESERVE AND MARKET PARTICIPANTS THROUGH THE ROLE OF MARKET PRICES. RATHER THAN MARKET PRICES TAKING A DIRECTION FROM THE FED. HE WANTS TO REVERSE THAT BACK TO WHAT EXISTED PRE-GFC, WHERE THE FED COULD TAKE DIRECTION FROM MARKET PRICES. IT IS A SIGNIFICANT SIGNAL OF A CHANGE IN DIRECTION, OBJECTIVE OF HOW HE WANTS TO SEE THE INSTITUTION REALLY REVERT BACK TO ITS PRIOR FORM. THERE IS LOTS OF DISCUSSION AROUND THE GAIN OF FUNCTION CRITIQUE OF THE FEDERAL RESERVE, AND I THINK YOU ARE STARTING TO SEE WITH THESE TASK FORCES, SOME OF THE OBJECTIVES OF IMMERSING SOME OF THAT STRUCTURAL CHANGE OVER THE LAST

20 YEARS BACK TO SOMETHING THAT EXISTED PRE-GFC. I THINK THAT'S CONSEQUENTIAL FOR INVESTORS AS WE LOOK AT GUIDANCE, THE ROLE OF DATA AND ALTERNATIVE DATA, AND REALLY ABOUT BRINGING BACK INVESTOR SENTIMENT AROUND DETERMINING PRICES RATHER THAN US TRYING TO FIGURE OUT WHAT THE FED IS GOING TO DO AND THEN USING THAT TO DETERMINE PRICES. CAROL: RIGHT. YOU'VE GOT TO PUT ALL THAT MONEY UNDER MANAGEMENT TO WORK FOR YOUR INVESTORS, JEFF. SO HAVING SAID THAT, IN FIXED INCOME, I GUESS CHANGING ENVIRONMENTS, HOW DO YOU FIND THE OPPORTUNITIES? WHERE DO YOU SEE THE OPPORTUNITIES?

WHAT ARE THE BETS YOU MAKE NOW THAT YOU THINK ARE VIABLE? I DON'T KNOW WHAT THE TIME FRAME IS. INVESTORS ALL HAVE DIFFERENT TIME FRAMES. BUT HOW DO YOU THINK ABOUT IT FOR AT LEAST THE NEXT 6 TO 12 MONTHS? JEFFREY: YEAH, AND IT'S SOME OF THE POINTS WE MAKE IN THIS QUARTERLY OUTLOOK, THAT ONE OF THE BIG CHANGES THAT IS ATTRACTIVE FROM A FIXED INCOME PERSPECTIVE IS WITH THE NORMALIZATION IN TERMS OF POLICY RATES AND INTEREST RATES, WE'VE SEEN YIELDS COME BACK TO THE FIXED INCOME ENVIRONMENT IN AN ATTRACTIVE MANNER. YOU HAVE TO TAKE THAT INTO THE CONTEXT IN THE HISTORY IN WHICH WE'RE TALKING ABOUT, WE SUFFERED THROUGH A LONG PERIOD OF ZERO INTEREST RATES, BELOW

INFLATION YIELD LEVELS THAT REALLY CHALLENGED THE OUTLOOK FROM AN INCOME P.E. ONE INCOME PERSPECTIVE. ONE OF THE GOOD NEWS WE HIGHLIGHTED IN OUR Q3 OUTLOOK, THE YIELD PERSPECTIVE HAS BEEN RESTORED. YOU CAN COME BACK TO THE BOND MARKETS, GET YIELD THAT'S ABOVE THE LEVEL OF INFLATION, MAINTAIN THE PURCHASING POWER OF YOUR SAVINGS, WHICH IS SORT OF THE ULTIMATE CHARGE OF THE FIXED INCOME PART OF THE PORTFOLIO. BUT WE ALSO TALK ABOUT THE IMPORTANCE OF SELECTIVITY, THAT WE'RE AT A PERIOD IN TERMS OF VALUATIONS, THAT THE NARROWNESS IN TERMS OF ECONOMIC GROWTH, IT'S A GOOD GROWTH OUTLOOK, BUT IT'S INCREASINGLY DETERMINED BY ONE THEME, AND THAT THEME IS

A.I. IS BOTH MICRO AND MACRO, EVERYTHING EVERYWHERE ALL AT ONCE, AND THAT'S GOOD, AND YOU'RE SEEING THAT SUPPORT IN TERMS OF THE ECONOMIC DATA, THE CAP EX, THE EXPENDITURES, THE TECHNOLOGY CONTRIBUTION, AND MOST IMPORTANTLY, THE SUPPORT THROUGH THE WEALTH EFFECT IN TERMS OF WHAT WE'RE SEEING ON CONSUMPTION. YET AT THE SAME TIME, THAT CREATES A VULNERABILITY. SO SOME ACTIVITY IN TERMS OF SECURITY SELECTION AND BENEFITING A BIT FROM SOME OF THE DISPERSION THAT WE SEE IN SOME PARTS OF THE MARKET HELPS TO NAVIGATE, IT'S ESSENTIAL TO NAVIGATING THROUGH THE FIXED INCOME ENVIRONMENT OVER THAT KIND OF TIME FRAME YOU WERE TALKING ABOUT, QUARTER TO SIX

MONTHS. CAROL: GREAT WAY TO SET THE TABLE AHEAD OF NEXT WEEK'S FED DECISION. JEFF, THANK YOU SO MUCH, SUPER APPRECIATE IT. JEFFREY ROSENBERG, SENIOR PORTFOLIO MANAGER OF FIXED INCOME OVER AT BLACKROCK, JOINING US. WHEN WE COME BACK, WE TALK ABOUT THE REINDUSTRIALIZATION OF THE U.S. WE HAVE TWO C.E.O.'S. CHARLIE: IT'S 2:21 ON WALL STREET. STOCKS SELLING OFF WITH A TRIPLE-DIGIT LOSS NOW FOR THE S&P 500 INDEX. OIL IS SURGING. TECH STOCKS ARE SLUMPING.

LET'S BEGIN WITH THE S&P 500 INDEX, NOW BELOW 7400, 7395 WHERE WE STAND. IT'S DOWN BY 104 POINTS, A DECLINE OF 1.3%. DOW INDUSTRIALS DOWN 1.1%. NASDAQ LOWER BY 2.3%. THE NASDAQ 100 INDEX DOWN 2%. AND THE BLOOMBERG MAG 7 INDEX IS DOWN 4.8%. THIS AS ALPHABET SLUMPS 6.4%. TESLA, AFTER EARNINGS, DOWN 14.2%. THE SOX, THE PHILADELPHIA STOCK EXCHANGE SEMICONDUCTOR INDEX, DOWN 1.2%. THE V.I.X. ABOVE 19, AND THE 10-YEAR AT 4.69%. THE TWO-YEAR, 4.35%. 30-YEAR, 5.16%. GOLD IS DOWN 2.1%, $4,041 AN OUNCE. BRENT AT $101.22 NOW, UP BY 7.6%.

LOCKHEED MARTIN AND RTX HAVE RAISED THEIR FULL-YEAR SALES FORECAST AS GEOPOLITICAL TENSIONS AROUND THE WORLD BOOST DEFENSE SPENDING. RTX UP 6.7%. LOCKHEED MARTIN UP BY 9.8%. AND SPACEX WILL BE ATTEMPTING A MAJOR TEST OF ITS STARSHIP ROCKET TONIGHT AFTER ABANDONING TAKEOFF LAST WEEK, HIGHLIGHTING MISTAKES FOR THE CRITICAL MILESTONE. WE'LL HAVE THE LAUNCH FOR YOU LIVE ON BLOOMBERG AT 6:45 WALL STREET TIME. SHARES OF SPACEX ARE GAINING NOW BY 1.2%. BY THE WAY, YOU'LL RECALL A COUPLE OF WEEKS AGO IT WAS AT 135, SPACEX SHARES NOW AT 116. FOR ON-DEMAND NEWS 24 HOURS A DAY, SUBSCRIBE TO BLOOMBERG NEWS NOW WHEREVER YOU GET YOUR PODCASTS. I'M CHARLIE PELLETT.

CAROL AND TIM, THAT WAS A BLOOMBERG BUSINESS FLASH. CAROL: 135, SO THAT'S DEFINITELY BELOW THE I.P.O. PRICE. CHARLIE, THANK YOU SO MUCH. WE WANT TO CALL YOUR ATTENTION TO, WE ARE KEEPING AN EYE ON PRESIDENT TRUMP. HE IS AT THE E.P.A. HE IS EXPECTED TO MAKE AN ANNOUNCEMENT ON THE RATE PAYER PROTECTION PLEDGE. THAT'S A PLEDGE THAT SEEKS TO PROTECT HOUSEHOLDS FROM ABSORBING UTILITY COSTS TIED TO DATA CENTERS, WHICH WE KNOW HAVE BEEN SO MUCH A PART OF THE A.I. -B8D. WE'RE GOING TO MONITOR ANY COMMENTS HE MAY MAKE. TIM: THE PRESIDENT JUST BEGINNING HIS REMARKS RIGHT NOW. WE'LL BRING YOU ANYTHING OF NOTE THAT HE SAYS THROUGHOUT THE PROGRAM TODAY. YOU CAN ALSO CHECK IT OUT ON

LIVE GO ON THE TERMINAL. CAROL: HEY, ALSO ON THE PRESIDENT'S AGENDA, DOMESTIC SHIP BUILDING. SHIP BUILDERS COULD RECEIVE BILLIONS OF DOLLARS UNDER THE NATIONAL DEFENSE AUTHORIZATION ACT THAT THE HOUSE PASSED YESTERDAY, APPROVING IT, LATEST OUT OF CONGRESSIONAL INITIATIVE AND REVIVING THE DOMESTIC MARITIME INDUSTRY TO UNDERMINE CHINESE COMMERCIAL DOMINANCE ON THE HIGH SEAS. PRESIDENT TRUMP HAS SAID SOME MIXED MESSAGING WHEN IT COMES TO HIS DEVOTION TO THE CAUSE AFTER RELEASING A PLAN ABOUT A MONTH AGO. TIM: IT'S BEEN ON THE PRESIDENT'S MIND FOR SOME TIME. HE'S TALKED ABOUT BUILDING SHIPS IN THE U.S. FOR QUITE A WHILE, INCLUDING JUST AFTER RETURNING TO THE WHITE HOUSE EARLY LAST YEAR. IN MARCH OF 2025 WHEN HE GAVE A

JOINT ADDRESS TO CONGRESS. TO BOOST OUR DEFENSE INDUSTRIAL BASE, WE ARE ALSO GOING TO RESURRECT THE AMERICAN SHIP BUILDING INDUSTRY, INCLUDING COMMERCIAL SHIP BUILDING AND MILITARY SHIP BUILDING. AND FOR THAT PURPOSE, I AM ANNOUNCING TONIGHT THAT WE WILL CREATE A NEW OFFICE OF SHIP BUILDING IN THE WHITE HOUSE AND OFFER SPECIAL TAX INCENTIVES TO BRING THIS INDUSTRY HOME TO AMERICA, WHERE IT BELONGS. CAROL: THAT, OF COURSE, WAS PRESIDENT TRUMP, MARCH 4, 2025, WHEN HE GAVE A JOINT ADDRESS TO CONGRESS THERE, TALKING ABOUT SHIP BUILDING. BUT ON THIS, WHAT'S INTERESTING, THERE WAS AN ANNOUNCEMENT EARLIER TODAY IN WASHINGTON. TIM: YEAH, FORMALLY ANNOUNCING THE NINE-YEAR DEAL THAT ESTABLISHES SIEMENS FOR HYUNDAI'S NEXT

GENERATION SHIP BUILDING AND DIGITIZATION STRATEGY. THOSE TWO COMPANIES FORMALLY ANNOUNCING THAT DEAL EARLIER TODAY. CAROL: WITH US RIGHT NOW IS THE PRESIDENT AND C.E.O. OF SIEMENS DIGITAL INDUSTRIES SOFTWARE, AND ALSO WITH US IS THE PRESIDENT AND C.E.O. OF HD HYUNDAI U.S.A., AND AGAIN, THEY BOTH JOIN US FROM WASHINGTON. GENTLEMEN, WELCOME. DELIGHTED TO HAVE YOU HERE ON BLOOMBERG. TONY, I WANT TO KICK IT OFF WITH YOU. WHAT DOES THIS DEAL SOLIDIFY SPECIFICALLY FOR SHIP BUILDING HERE IN THE U.S.? WHAT DOES IT MEAN FOR THE TWO COMPANIES BUT WHAT DOES IT MEAN FOR SHIP BUILDING MORE BROADLY HERE IN THE UNITED STATES? YEAH, WE'RE VERY PROUD OF THE PARTNERSHIP HERE WITH HD HYUNDAI, AND A BIG PART OF THAT WAS HOW DO THEY MOVE FASTER,

HOW DO THEY BUILD SHIPS FASTER, HOW DO THEY DESIGN AND MANUFACTURE FASTER. WE PROVIDE THE TOOLS THAT ALLOW YOU TO DO THAT. WHEN YOU THINK ABOUT ADVANCEMENT OF SHIP BUILDING HERE IN THE U.S., PART OF THE ANNOUNCEMENT TODAY BETWEEN THE U.S. AND KOREAN GOVERNMENTS IS HOW DO WE PROMOTE MORE OF THAT COMMERCIAL SHIPYARD BUILDING HERE IN THE U.S. OUR TOOLS ARE THE TOOLS THAT HELP YOU DO THAT, HELP YOU GO A LOT FASTER, TO CREATE THE DIGITAL ENVIRONMENT TO PRODUCE AND MANUFACTURE. IT'S SOMETHING, IT'S A KEY ENABLER FOR THIS BUSINESS HERE IN THE U.S. TIM: IN A SUSTAINABLE WAY HERE IN THE U.S.

RATHER THAN IN ANOTHER PART OF THE WORLD. SPECIFICALLY WITH THE DEAL SUCH AS THIS, HOW DO YOU PENCIL IT OUT AND MAKE THE NUMBERS WORK FOR YOU AND FOR HYUNDAI? WE SEE GREAT MOMENTUM FROM THE STRONG LEADERSHIP FROM THE U.S. ADMINISTRATION. BUT AT THE SAME TIME, WHEN IT COMES TO REALITY AND THE DAY-TO-DAY OPERATION, THERE ARE MANY CHALLENGES. ONE OF THE GREAT CHALLENGE THAT WE ARE FACING HERE IN THE UNITED STATES WOULD BE A SHORTAGE OF LABOR, ESPECIALLY THE SKILLED LABOR. AND THE DIGITAL SHIPYARD THAT WE ARE BUILDING TOGETHER IN THAT RELATION IS TO CREATE A VIRTUAL SHIPYARD, WHERE

EVERYTHING IS CONNECTED, ALL THE INFORMATION COMES TOGETHER, AND BY THAT WE MAKE A BETTER DECISION AND OPTIMIZE OUR RESOURCES. IN THAT WAY, WE THINK THAT IT WILL ENABLE US TO FASTER AUTOMATION, DIGITALIZATION AND A.I. COMPARTMENT. WE HAVE THE LABOR ISSUE HERE AND THAT WOULD BE A POWERFUL TOOL TO HAVE HERE. CAROL: LET ME JUST FOLLOW UP ON THAT. HOW MUCH CAN A DIGITAL SHIPYARD BASICALLY REDUCE CONSTRUCTION TIME FOR LET'S SAY A DESTROYER, A SUBMARINE, OR AN AUXILIARY SHIP? THAT'S A GREAT QUESTION. WE DON'T GAUGE THE SUCCESS OF THE DIGITAL SHIPYARD THING IN TERMS OF THE TIME THAT WE REDUCE. WHAT WE FOCUS MORE IS, YOU KNOW, LET ME PUT IT THIS WAY.

WE BELIEVE WITH THIS DIGITAL TOOL, ON TIME AND ON BUDGET DELIVERY WILL BE POSSIBLE IN A MORE EFFICIENT WAY. SO WE TRY TO REDUCE THE TIME, BUT MORE FOCUS FOR NOW, AND THE LABOR FORCE READY FOR THAT ON-TIME DELIVERY. TIM: THAT'S A GOOD QUESTION TO YOU, TOO, TONY, ABOUT THIS LABOR FORCE AND THE WAY THAT DIGITAL TOOLS IN YOUR VIEW ARE OFFSETTING SOME OF THE CHALLENGES THAT THE U.S. INDUSTRIAL BASE HAS OR THE U.S. LABOR FORCE HAS HERE, GIVEN THE SHORTAGES OF WELDERS, HOW MUCH CAN THESE DIGITAL TOOLS OFFSET THE SHORTAGE OF SKILLED WELDER SAYS, PIPE FITTERS AND ELECTRICIANS?

I GUESS I FIRST START WITH THE DESIGN, RIGHT? TIM: BEFORE WE EVEN GET TO THE ACTUAL LABOR THAT IT TAKES TO PHYSICALLY TONY: YOU HAVE TO GET THE DESIGN, ENGINEER RIGHT, THE PHYSICS OF THE PRODUCT. WE TALKED ABOUT THIS AS A DIGITAL TWIN, THE IDEA OF HOW CLOSELY THE DIGITAL WORLD CAN REPRESENT THE REAL WORLD. THE CLOSER WE CAN MAKE THAT RELATIONSHIP, THE FASTER COMPANIES LIKE HD HYUNDAI CAN GO. YOU THINK ABOUT THESE PRODUCTS, HIGHLY COMPLEX, SOFTWARE, MECHANICAL DESIGN, MANUFACTURING, ENGINEERING, THE PLANT LAYOUT, PLANT SIMULATION, ALL OF THESE THINGS. IF WE CAN STIMULATE -- SIMULATE THAT, THIS COMPLEX ENVIRONMENT

WILL NOT GO AWAY, BUT IF I CAN SIMULATE THAT, THAT ALLOWS ME TO GO A LOT QUICKER. ONCE I DO ALL OF THAT, IT COMES TO WHEN I DO WITH WELDING, SIMULATION, WHAT HAPPENS IN THE PLANT? WE BRING UP ALL OF THAT TOGETHER AND THAT IS WHERE YOU START TO GET THE VALUE OF WHAT OUR SOFTWARE CAN DELIVER. NOW I CAN MAKE THESE DECISIONS AND CONFIDENCE IN A VERY COMPLEX WORLD, AND THAT IS TRULY A COMPETITIVE ADVANTAGE. IF I CAN SIMULATE INTO ALL OF THAT WORK FASTER THAN THE NEXT GUY, IT'S A BIG ADVANTAGE. ALSO THESE TOOLS ARE ENABLED FOR THE WORKERS. WE CAN SIMULATE WHAT THE RECORDS WILL DO, HOW TO PERFORM THE WORK, PROVIDE THE WORK INSTRUCTIONS, ALL OF THESE THINGS.

IT IS REALLY ASSISTING WHAT IS GOING ON, AS WELL AS PROGRAMMING THE ROBOTS, SIMULATING, ALL OF THAT IS PART OF OUR SOFTWARE. CAROL: LET ME GO BACK TO YOU. I GET IT, THE TIMING, THINGS WILL BE MUCH FASTER. GIVE US AN IDEA. HOW DOES THIS CHANGE OUTPUT? CAN YOU GIVE US -- WE ARE INTO NUMBERS HERE -- SOME CONTEXT IN TERMS OF SIX MONTHS, WHAT GIVES CHANGE, 12 MONTHS? GIVE US AN IDEA ON HOW OUTPUT IS CHANGED, ESPECIALLY WHEN WE HAVE A PRESIDENT WHO WE ARE MONITORING RIGHT NOW, TALKING ABOUT DATA CENTERS AND POWER, BUT ALSO THINK ABOUT SHIPBUILDING, WHICH HE HAS TALKED ABOUT INCREASING THAT.

MANY PEOPLE SAY YOU CANNOT DO THIS QUICKLY IN TERMS OF THE U.S. SHIPBUILDING INDUSTRY, CHANGE AND INCREASE IT. IT DOESN'T HAPPEN OVERNIGHT. SEK HWAN: THE CURRENT TIMELINE WE HAVE IN MIND IS TO BE ABLE TO APPLY THIS DIGITAL SHIPYARD CONCEPT, STARTING THE DESIGN IN 2028. THAT WILL BE THE STARTING POINT IN REALITY. IT WILL TAKE SOME MORE TIME TO DEVELOP A PROGRAM TO COVER THE WHOLE SHIPYARD, THE ENTIRE SHIP THAT WE BUILD IN OUR YARD.

CAROL: I WANT TO BRING YOU BACK IN ON THIS CONVERSATION, TONY, WHEN IT COMES TO TIMELINES. WHAT IS THE TIMELINE ON YOU, THE PRESSURE, DEMANDS ON YOU GUYS IN TERMS OF DELIVERING THE SOFTWARE, CHANGES THAT ARE NEEDED TO BASICALLY MODERNIZE THE SHIPBUILDING INDUSTRY HERE IN THE UNITED STATES? TONY: SOFTWARE IS IMPROVING NOW. WE SELL THE SOFTWARE ALL THE TIME. THE WORK IS FOR US TO INTEGRATE THAT INTO THE WORKFLOWS AND THE WAY THAT HD HYUNDAI WORKS, FOR EXAMPLE, HOW THEY DESIGN.

WE DO THIS ALL OVER THE GLOBE. MOST MANUFACTURING AND ENGINEERING COMPANIES USE SOME VERSION OF OUR SOFTWARE. THE IDEA IS HOW YOU GET FROM POINT A TO POINT B IN THE DESIGN PROCESS. YOU MENTIONED SUSTAINABILITY, WHATEVER IT MAY BE. WE CAN SIMULATE THAT SHIP FLOWING THROUGH THE WATER, THE RESISTANCE OF THE WATER, THE RESISTANCE OF THE AIRFLOW AS IT IS GOING WITH COMPUTATIONAL FLUID DYNAMICS. FROM THERE WE CAN DETERMINE HOW EFFICIENT WE CAN MAKE THE PRODUCT, SO WE HAVE ALL OF THESE PROCESSES ARE ESTABLISHED. NOW WHAT WE DO IS SIT WITH HD HYUNDAI AND ESTABLISH THEIR WORKFLOWS. THIS IS WORK WE HAVE STARTED ALREADY.

WE FEEL CONFIDENT WE CAN GO QUICKLY IN THE DESIGN, ENGINEERING, MANUFACTURING PROCESS. BUILDING OUT SOME OF THE PLANTS TAKES LONGER. BUT THE SOFTWARE IS READY TO GO NOW. CAROL: IT IS JUST A CASE OF INTEGRATING ALL OF THIS INTO THE EXISTING SYSTEMS THAT ARE THERE AT HYUNDAI. GENTLEMEN, FASCINATING AS WE CONTINUE TO SEE AND TALK ABOUT THE REINDUSTRIALIZATION OF THE UNITED STATES. YOU GUYS ARE DOING IT WITH THIS ANNOUNCEMENT. I HOPE THAT YOU'LL COME BACK IN A FEW MONTHS AND GIVE US A STATUS UPDATE. WE REALLY APPRECIATE IT. CONGRATULATIONS. ALL RIGHT, FOLKS. WE ARE CONTINUING. TONY HEMMELGARN IS PRESIDENT, CEO OF SIEMENS DIGITAL INDUSTRIES SOFTWARE, ALONG WITH SEK HWAN HONG, CEO OF HYUNDAI

2:40 ON WALL STREET. WE DO CHECK MARKETS ALL DAY LONG HERE ON BLOOMBERG. S&P 500 ON TRACK FOR ITS WORST DAY IN A MONTH. DOW, S&P, NASDAQ IN THE RED. S&P IS DOWN 1.4%. 7393. S&P DOWN 105 POINTS. DOW IS DOWN 1.1 PERCENT. NASDAQ IS DOWN 2.4%. NASDAQ 100 INDEX DOWN 2%. BLOOMBERG MAG SEVEN INDEX HIT PARTICULARLY HARD, DOWN 4.8% AFTER EARNINGS LAST NIGHT FROM ALPHABET AND TESLA. ALPHABET DOWN BY 6.7 PERCENT. TESLA TUMBLING BY 14.2%. 10-YEAR CURRENTLY YIELDING 4.69%. 2-YEAR, 4.35%. 30-YEAR, FIVE POINT 16%. GOLD IS DOWN TO 4045, DROP OF 2%. MOST TEXAS IN MINUTE CRUDE SURGEON BY 6.1 PERCENT.

BRENT CRUDE ABOUT ONE DOLLAR -- ABOUT $100. EARNINGS NEWS, T-MOBILE REPORTED REVENUE THAT MISSED ANALYST ESTIMATES AMID MODEST GAINS IN SUBSCRIBERS, DISAPPOINTING WALL STREET'S HIGH EXPECTATIONS. T-MOBILE DOWN BY 7.6 PERCENT. AT&T REPORTED YESTERDAY, REMAINS LOWER BY 0.9%. TOMORROW, WE HEAR FROM VERIZON, LOWER BY 1%. FOR ON-DEMAND NEWS 24 HOURS A DAY, SUBSCRIBE TO BLOOMBERG NEWS NOW WHEREVER YOU GET YOUR PODCASTS. I'M CHARLIE PELLETT. THAT IS A BLOOMBERG BUSINESS FLASH. CAROL: THANKS SO MUCH. A FEW DEVELOPMENTS FROM THE WORLD OF ROBOTIC SURGERY. AFTER YEARS OF DELAYS, J&J NOW HAS A ROBOT ON THE MARKET FOR SOFT TISSUE SURGERY. THAT NEWS CAME OUT YESTERDAY.

MEANTIME, INTUITIVE SURGICAL SHARES, WE SAW THEM UNDER PRESSURE LAST WEEK, AS GROWTH IN THE USE OF ITS ROBOTS LOW TO THE WEAKEST PACE IN FOUR YEARS, GUIDANCE FOR PROCEDURE GROWTH WAS UNCHANGED DUE TO SOCCER U.S. GROWTH IN PROCEDURES REFLECTED BECAUSE OF CHANGES TO AFFORDABLE CARE ACT SUBSIDIES. TIM: THIS IS SO INTERESTING. CAROL: U.S. DA VINCI BARIATRIC CASES RECEIVED PRESSURE FROM PATIENT USAGE OF GLP-1 DRUGS. TIM: SO PEOPLE ARE GETTING FEWER BARIATRIC SURGERIES BECAUSE THEY ARE USING GLP-1'S. BACK WITH US NOW IS THE CHAIRMAN, CEO, FOUNDER OF THE U.S.-BASED SS INNOVATIONS INTERNATIONAL, MAKES ROBOTIC TECHNOLOGIES.

HE JOINS US NOW FROM FORT LAUDERDALE. GOOD TO HAVE YOU ON THE PROGRAM. WHEN PEOPLE THINK SURGICAL ROBOTICS, THINK ABOUT THE DA VINCI MACHINE FROM INTUITIVE SURGICAL. HOW DOES YOUR PRODUCT DIFFER FROM THE DA VINCI SURGICAL ROBOT? GREAT START IN QUESTION. FIRST OF ALL, THANKS FOR HAVING ME. OUR SYSTEM IS DIFFERENT FROM DA VINCI AT ALMOST EVERY LEVEL OTHER THAN BEING A SURGICAL ROBOT. OPENFACE CONSOLE AS OPPOSED TO THE IMMERSIVE ARM CONTROL FROM THE CONSOLE FROM LARGE 32-INCH MONITOR. AND THEN A MODULAR DESIGN OF THE ROBOTIC ARMS. MOREOVER, OUR SYSTEM IS EQUIPPED FROM THE BEGINNING FOR TELE SURGERY. TIM: WHAT ABOUT FROM THE PERSPECTIVE

OF A DOCTOR USING THIS TECHNOLOGY, HAVING TO TRAIN? HOW DO YOU TRAIN THE DOCTORS TO DO THIS? SUDHIR: IN INDIA, WE HAVE SOLD ALMOST 13,000 CASES. VERY GOOD YEAR. ESSENTIALLY WHAT WE HAVE OBSERVED FROM PEOPLE WHO ARE DA VINCI USERS, IT TAKES THEM ANYWHERE FROM FIVE TO 10 MINUTES. IT IS LIKE DRIVING A DIFFERENT CAR. THE SAME PRINCIPLES ESSENTIALLY WITH THE HAND CONTROLS, FOOT CONTROLS OPERATING. PEOPLE WHO ARE NON-ROBOTIC SURGEONS, IT CAN TAKE THEM UP TO 30 MINUTES TO LEARN THE MACHINE. THEN THEY HAVE TO GO THROUGH CERTAIN PRACTICE, GET USED TO THINGS, JUST LIKE THE DA VINCI. CAROL: YOU DON'T SELL IN THE U.S. YET, CORRECT? SUDHIR:

YEAH, WE ARE ACTUALLY IN THE PROCESS WITH U.S. F.D.A., AND AGAIN, OUR ANTICIPATION IS HOPEFULLY BY NEXT YEAR WE WILL ACHIEVE SOME APPROVAL FROM U.S. F.D.A. CAROL: I KNOW THIS IS SOME OF WHAT WE TALKED ABOUT LAST YEAR. I AM CURIOUS WHAT YOU HEAR FROM THE INVESTMENT COMMUNITY, BECAUSE AS TIM MENTIONED, YOU THINK OF INTUITIVE SURGICAL, THERE ARE $117 BILLION MARKET CAP COMPANY, AND YOU DID TALK ABOUT THE DISTINCTIONS. DO YOU ANTICIPATE THAT THE U.S. MARKET IS REALLY YOUR GROWTH OPPORTUNITY? BECAUSE I UNDERSTAND YOUR MISSION IS ABOUT MAKING ROBOTICS SURGERY MORE ACCESSIBLE TO MORE PEOPLE, AND ALSO MAKING IT MORE AFFORDABLE. SUDHIR: WE HAVE ACTUALLY ACHIEVED THAT

FROM SOME OF THE PRICING. SO I THINK WHEN YOU THINK ABOUT THE GROWTH OPERATION, ABSOLUTELY, BECAUSE OUR SYSTEM DOES EVERY SINGLE THING THAT DA VINCI DOES AND MORE IN TERMS OF CAPABILITY, AND SPECIALTY, AND BY THE TIME YOU COME TO EUROPE, IT'S SOMEWHAT LESS THAN HALF THE PRICE, AND AGAIN, BETTER OPPORTUNITY. I THINK IT'S A GREAT OPPORTUNITY IN THE U.S. AS WELL ONCE YOU GET PAST IT, AND ALSO, THE WHOLE CENTER MARKET. OUR SYSTEM BEING MODULAR, ALL BELLS AND WHISTLES, A GREAT OPPORTUNITY. AND AGAIN, AT AN AFFORDABLE PRICE. I THINK THEY'RE TARGETING HOSPITALS, AND I'VE BEEN APPROACHED BY EVERY MAJOR HOSPITAL IN THE COUNTRY, BIG NAMES THAT YOU CAN IMAGINE, AND ALSO -- CAROL: IN THE U.S. YOU'RE SAYING?

YOU'RE SAYING IN THE U.S.? SUDHIR: THAT'S CORRECT, YES. THE CLEVELAND CLINIC, CHICAGO, I MEAN, ALL THE BIG NAMES, AT DIFFERENT LEVELS. BUT THEY'RE VERY INTERESTED BECAUSE THE TECHNOLOGY NOW HAS BEEN COMMERCIALIZED. IN INDIA, THEY VALIDATED IT, AND SAFETY HAS BEEN PROVEN. CAROL: ONE THING I WANT TO ASK YOU, THOUGH, INVESTORS DON'T SEEM TO HAVE CONVICTION BEHIND YOU. WHEN WE TALKED WITH YOU LAST NOVEMBER, YOU GUYS WERE OVER A BILLION DOLLAR MARKET CAP COMPANY, BUT YOU'RE NOW ABOUT $683 MILLION IN TERMS OF MARKET CAP. THE STOCK IS DOWN 40% YEAR TO DATE. WHAT DO YOU HEAR FROM YOUR INVESTOR BASE? BECAUSE IF YOU GUYS ARE JUST ABOUT A YEAR AWAY OR SO FROM BEING IN THE U.S.

MARKET, AND IT SOUNDS LIKE THERE'S SUPPORT, WHY ARE INVESTORS A-- AREN'T INVESTORS AGREEING WITH YOU? SUDHIR: FIRST OF ALL, AS I'M SURE YOU KNOW MORE THAN ANYBODY ELSE, THE STOCK MARKET IS FRUSTRATED. YOU LOOK AT A YEAR AGO, 200 MILLION MORE THAN NOW. THESE THINGS HAPPEN. I THINK THE BIGGEST THING THAT WE HEAR FROM INVESTORS, THEY ARE WAITING FOR US TO GET THE APPROVAL, AND THEY WANT TO SEE U.S. REVENUES, AND THAT IS, I THINK, THE LIKE I SAID, WE FINALLY HAVE, AND NOW MORE AND MORE ANALYSTS ACTUALLY ARE SCHEDULING. SO I THINK ONCE THE COVERAGE BECOMES AVAILABLE TO THE COMMUNITY, I THINK ONCE WE GRADUALLY CHANGE, AND I THINK THE BOTTOM LINE IS THIS REALLY. I THINK THEY WANT TO SEE U.S.

REVENUES, AND THAT'S HOW I THINK IT IS. TIM: TO ADD ON TO THAT, INTUITIVE SURGICAL HAS A MARKET CAP CLOSE TO $120 BILLION. DR. MOLL, WHO IS A FOUNDER, IS YOUR VICE CHAIR NOW. HE BELIEVES IN YOUR PRODUCT. I WOULD THINK A LOT OF PEOPLE WOULD LOOK AT THAT AS A HUGE FEATHER IN YOUR CAP. WOULD YOU SELL YOURSELF TO A COMPANY LIKE INTUITIVE SURGICAL? SUDHIR: YOU KNOW I CANNOT ANSWER THAT. I'M SORRY, I'LL HAVE TO REFRAIN FROM THAT. BUT WITH THE CAVEAT THEY MADE A PROPOSAL WE CANNOT REFUTE. IT'S A PUBLIC COMPANY. IT WILL HAVE TO BE BROUGHT UP TO THE PEOPLE. I'LL LEAVE IT AT THAT. CAROL: WE CAN ASSUME THAT THERE'S BEEN NO PROPOSAL YET PUT BEFORE YOU?

SUDHIR: WELL, THERE HAVE BEEN PEOPLE THAT LOOKED AT US, AND ALL THAT THING, AND I'M SURE YOU CAN APPRECIATE I CANNOT GET INTO SOME OF THE DETAILS. CAROL: WE DO. STAY IN TOUCH AND LET US KNOW. THE CHAIRMAN AND C.E.O. AND FOUNDER OF SS INNOVATIONS INTERNATIONAL. THIS IS "BLOOMBERG BUSINESS WEEK DAILY," WITH CAROL MASSAR AND TIM STENOVEC, ON BLOOMBERG RADIO AND TELEVISION. CAROL: ALL RIGHT, EVERYBODY. IT IS THURSDAY, JULY 23, 2026. CAROL MASSAR ALONG WITH TIM STENOVEC, LIVE HERE AT BLOOMBERG HEADQUARTERS IN NEW YORK CITY. IT'S KIND OF ONE OF THOSE DAYS, I'M JUST GOING TO SAY THAT, WE ARE SEEING SOME PRESSURE ON THE

OVERALL TRADE, DOWN ABOUT 1.4% ON THE S&P 500, DOWN MORE THAN 100 POINTS. YOU'RE LOOKING AT ABOUT A 1% DECLINE IN THE DOW JONES INDUSTRIAL AVERAGE, DOWN MORE THAN 2% WHEN IT COMES TO THE NASDAQ 100. 601 POINTS TO THE DOWNSIDE. KEY MOVERS WHEN IT COMES TO MAJOR AVERAGES, WE'RE TALKING ABOUT ALPHABET AND TESLA. TIM: THE MAG 7 COLLECTIVELY, THE BLOOMBERG MAGAZINE 8 TOTAL RETURN INDEX IS HAVING ITS -- MAG 7 TOTAL RETURN INDEX IS HAVING ITS WORST DAY GOING BACK TO THE LIBERATION DAY. SO INVESTORS ARE SORT OF RETHINKING CAP EX, IS FAIR TO SAY. CAROL: DEJA VU ALL OVER AGAIN.

WE GO BACK AND FORTH. YOU GET BAD HEADLINES, OR WORRISOME OR ANY KIND OF INTERPRETATION THAT THE A.I. TRADE ISN'T ALL THAT, SO YOU SEE INVESTORS GETTING NERVOUS. ALSO, I WOULD NOT RULE OUT THAT THIS WHOLE CONCEPT OF A HIGHER RATE ENVIRONMENT IS MORE VOLATILITY WHEN IT COMES TO THE RATE ENVIRONMENT. YOU LOOK AT VALUATIONS DIFFERENTLY, TOO, AND THAT KIND OF EXACERBATES SOME OF THE NERVOUSNESS OUT THERE. TIM: I'M TIM STENOVEC ALONG WITH CAROL MASSAR. LET'S LOOK AT STOCKS ON THE MOVE TODAY. WE'RE JOINED BY OUR SENIOR EQUITIES REPORTER FOR SOME STOCK MOVERS. HEY, JESS. JESS: STARTING WITH TESLA.

WE'RE TALKING ABOUT OBVIOUSLY CAP EX WEIGHING ON THE BACK OF THE EARNINGS THAT WE GOT AFTER THE BELL YESTERDAY WITH TESLA, AS WELL AS GOOGLE. I'LL START OFF WITH TESLA. LOOKING AT THE STOCK, DOWN 14%. THIS IS THE BIGGEST PERCENT AND POINT DECLINER IN THE S&P 500 TODAY. RIGHT AFTER THAT ON A POINT BASIS IS GOOGLE. SO OBVIOUSLY YOU'RE SEEING MORE OF, ESPECIALLY THE MAG 7, YOU WERE TALKING BIGGEST DECLINE WE'VE SEEN ON A DAILY BASIS, BASICALLY WHAT WE SAW DURING THE TARIFF TANTRUM, BUT ALSO BEFORE TODAY, YOU WOULD HAVE ALREADY SEEN THE MAG 7 INDEX LAGGING THE BROADER INDEXES, BECAUSE YOU ALREADY SAW A

DIVERGENCE IN THE TRADE BETWEEN WHAT WAS GOING ON THERE AND WHAT WAS GOING ON WITH CHIP STOCKS. WHAT WILL BE INTERESTING IS LOOKING FORWARD TO NEXT WEEK, BECAUSE THAT'S WHEN WE'LL GET MORE EARNINGS RESULTS FROM THE BIGGEST CUSTOMERS FOR NVIDIA. SO META, MICROSOFT AFTER THE CLOSING BELL NEXT WEDNESDAY. YOU'LL HAVE AMAZON AFTER THE BELL NEXT THURSDAY. BUT THEN ALSO APPLE. BUT WHAT'S INTERESTING, IF YOU LOOK AT ALL THE MAG 7 STOCKS, OF COURSE APPLE IS DOWN ALMOST ABOUT 2%, BUT IT'S THE LEAST HIT, AND ALSO THE ONE THAT SPINS THE LEAST WHEN IT COMES TO CAP EX. SO WHEN YOU TIE A LOT OF THAT TOGETHER THERE, THAT'S WHAT'S INTERESTING, JUST GIVEN NEXT

WEEK WE'LL HEAR THE SAME THING FROM THOSE COMPANIES. CAROL: I AM BLOWN AWAY BY THESE COMPANIES, AND WE ALWAYS TALK ABOUT THE CASH ON THEIR BALANCE SHEETS, AND NOW WE'RE TALKING ABOUT NEGATIVE CASH FLOW, RIGHT? JESS: IF YOU LOOK ON THE OTHER SIDE -- TIM: GOT TO SPEND MONEY TO MAKE MONEY. JESS: MICRON, WESTERN DEMOCRAT TAIL, AND THEN U.S.-LISTED SHARES OF SK HYNIX HIGHER TODAY. SO DIFFERENT DIRECTION THAN SOME OF THE OTHERS. TIM: YOU GOT IT ALL WITH ONE STOCK. JESS: YOU DON'T NEED ANYTHING ELSE. CAROL: WAIT 24 HOURS AND SEE WHAT HAPPENS TOMORROW. TESLA, AS YOU SAID, FOLLOWING THAT ONE, AMERICAN AIRLINES, BIGGEST AIRLINE. JESS: I WANTED TO GET INTO OIL PRICES TODAY, BECAUSE ENERGY ON THE

FLIP SIDE OF THAT, IF YOU LOOK AT THE S&P 500, ONE OF THE BEST PERFORMING INDUSTRY GROUPS, BUT DISCRETIONARY IS ONE OF THE WORST. OBVIOUSLY TESLA IS IN THERE, AS WELL AS AMAZON. BUT AMERICAN AIRLINES NO LONGER IN THE S&P 500. IT GOT BOOTED ALMOST TWO YEARS AGO, BUT IT'S ONE OF THE WORST PERFORMERS AS FAR AS THAT PARTICULAR INDEX. BUT IF YOU LOOK AT THE OTHER PASSENGER AIRLINES, SO AAL IS THE TICKER, DOWN ALMOST 8%, ON PACE FOR ITS WORST DAY IN ALMOST A YEAR, JULY 24 OF LAST YEAR, SO BASICALLY THAT WOULD BE TOMORROW TO MAKE ONE YEAR THERE. BUT THEN THE PASSENGER AIRLINES INDEX AND THE S&P 500, THAT'S DOWN MORE THAN 3%. SO ON PACE FOR ITS WORST DAY SINCE JULY 7 THERE. BUT ON THE FLIP SIDE, ENERGY,

OF COURSE, STILL PERFORMING WELL. SO IF YOU'RE LOOKING AT EXXON OR CHEVRON, THOSE MOVING HIGHER TODAY. CAROL: NO SURPRISE ON THAT ONE. LET'S GO TO ALLE. JESS: THIS IS A LOCK MANUFACTURER AND PHYSICAL SECURITY COMPANY. IT BOOSTED ITS FULL-YEAR PROFIT OUTLOOK, SO EXPECT ADJUSTED EARNINGS AROUND $8.85 TO $9 A SHARE, SO WELL ABOVE THE CONSENSUS ESTIMATE THERE. IT'S STILL DOWN 13% FROM ITS RECORD HIGH THAT WE SAW IN FEBRUARY, BUT YOU ARE HAVING JUST INDUSTRIALS IN GENERAL AS THE BEST PERFORMING INDUSTRY GROUP IN THE S&P 500 TODAY.

IT'S UP MORE THAN 1.5%, AND ENERGY IS RIGHT BEHIND IT, UP AROUND 1%. ALSO, UNITED RENTALS IS HIGHER, TOO. THIS IS ALSO AN INDUSTRIAL STOCK. IT'S THE WORLD'S LARGEST EQUIPMENT RENTAL COMPANY. YOU ALSO SAW A GUIDANCE BOOST FROM THEM. BEHIND THAT, RTX, AN AEROSPACE AND DEFENSE COMPANY. IT ALSO BOOSTED ITS OUTLOOK ON HIGH DEMAND FOR WEAPONS AND ENGINE PARTS. SO BASICALLY INDUSTRIALS MOVING A VERY DIFFERENT DIRECTION THAN WHAT'S HAPPENING IN DISCRETIONER AND COMMUNICATION SERVICES. THAT'S OBVIOUSLY WHERE MOST OF THE BIG TECH COMPANIES ARE HOUSED. TIM: YOU GET A LOT FOR YOUR MONEY WITH STOCK MOVERS.

TYPICALLY YOU GET THREE STOCKS. SHE BRINGS THE THREE STOCKS, PLUS SOME FRIENDS. JESS: TRYING TO PUT IN SOME OTHERS. BUT OH, I WAS GOING TO ADD, WE WERE TALKING ABOUT AMERICAN AIRLINES, ALSO IT WARNED IT COULD POTENTIALLY REPORT A LOSS THIS YEAR, TIED TO HEUER FUEL COSTS. WE HAVE BRENT HITTING -- TIM: YOU CAN ONLY OFFSET SO MUCH. CAROL: YEAH, RIGHT. THE LONGER THIS GOES ON, THE MORE QUARTERS IT HITS WHEN IT COMES TO PUBLICLY HELD COMPANIES. JESS, THANK YOU. A LOT OF MOVING PIECES TODAY. OUR SENIOR EQUITIES REPORTER. CHECK OUT OUR PODCAST, FIVE-MINUTE EPISODES, WINNERS AND LOSERS, FIND IT ON APPLE, SPOTIFY OR ANYWHERE. TIM: COMING UP NEXT ON "BLOOMBERG BUSINESS WEEK DAILY,"

ON RADIO, YOUTUBE OR BLOOMBERG ORIGINALS, WE'RE TALKING WHAT'S MOVING THIS MAG 7.