AI Spending Fears Hit Tech; Banks Report Blowout Earnings | Daybreak Europe 7/23/2026
Speakers
Matt
— Tech Analyst, Bloomberg Intelligence
Paul Wallace
— Team Leader/Senior Editor, Bloomberg
Cross-Asset Strategist
— Cross-Asset Strategist
Josie Anderson
— European Economist, Nomura
Bloomberg Asia
— Reporter, Bloomberg
Claudia Cohen
— Reporter, Bloomberg
Lizzy
— Anchor, Bloomberg
Deals Reporter
— Deals Reporter, Bloomberg
Summary
Bloomberg Daybreak Europe covers tech earnings impact, with Alphabet shares sliding after an AI capex warning and Tesla also falling. Bank earnings from BNP Paribas and UniCredit beat expectations. The ECB is expected to hold rates amid Middle East escalation. Oil prices rose after Houthi attacks on Red Sea tankers.
- Alphabet shares fell after capex outlook tops $200 billion, stoking AI spending fears.
- Tesla also declined as Musk's capex comments raised speculative concerns.
- BNP Paribas reported better-than-expected revenue and profit, led by equity trading.
- UniCredit lifted full-year profit guidance as it pursues Commerzbank takeover.
- Brent crude oil jumped after Houthi attacks on two tankers in the Red Sea.
- ECB decision expected to hold rates, with September hike likely.
- Fed's lack of forward guidance under Chair Warsh creates unusual rate-path uncertainty.
- Asian chipmakers rose on expectations of benefiting from AI hyperscaler spending.
Ideas
Alphabet AI capex raises fiscal discipline fears.
Alphabet's capex spending outlook topping $200 billion raises concerns about fiscal discipline and irrational AI spend, while profitability on cloud services is weak, reminiscent of Zuckerberg's comment about not knowing if they'll make money back, leading to investor anxiety.
Tesla AI capex more speculative than Google.
Tesla's capex feels more speculative than Google's, directed at humanoid robots, robotaxis and self-driving cars with less clear return profile, and Musk's comments about avoiding wasteful spending add to concerns.
Escalating Iran war raises oil supply risk.
Houthi attacks on two oil tankers in Red Sea open a new front in the Iran war, escalating tensions and threatening supply disruptions, pushing oil prices higher and making negotiations less likely.
Up Next
This Bloomberg Markets video, published July 23, 2026, features Matt, Paul Wallace discussing GOOG, TSLA, BNO. 3 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Matt, Paul Wallace · Tickers: GOOG, TSLA, BNO