Bloomberg Businessweek

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.

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Bloomberg Intelligence Senior Semiconductor Analyst Kunjan Sobhani
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The people, companies and trends shaping the global economy.
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The US Justice Department reclassified state-regulated marijuana as a less dangerous drug, a major shift that could increase legal cannabis sales and help a struggling industry.
The directive signed by acting Attorney General Todd Blanche moved licensed marijuana products from Schedule I — the same federal category as heroin and LSD — to the less strictly controlled Schedule III. The action stops short of fully legalizing the drug for recreational use nationwide, but it meets the demands of many advocates who have long argued for looser restrictions.
The move is likely to make operations easier for cannabis companies, including potentially gaining greater access to the banking system and reducing taxes, and bolster medical research with the drug. The US industry, which includes public firms, has been trying to revive growth in recent years after an initial surge last decade.
Shares of firms that sell marijuana products initially gained after the announcement, but then reversed course. The AdvisorShares Pure US Cannabis ETF declined as much as 15%. The drop for Curaleaf Holdings Inc., one of the largest US cannabis companies, hit 24%.
The order narrowly applied to medical use of cannabis only, rather than broadly addressing adult recreational usage, which “might also be causing some confusion,” Aaron Grey, an analyst with Alliance Global Partners, said in an interview.
Today's show features:
Curaleaf CEO Boris Jordan
Bloomberg Tech co-host Ed Ludlow on tech news roundup
Florian Ielpo, Head of Macro at Lombard Odier Investment on market reaction to Iran/geopolitics and inflation outlook latest
George Ferguson, Bloomberg Intelligence Senior Defense and Airlines Analyst on Airlines
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With Iran's fragile ceasefire expiring on Wednesday, new Bloomberg satellite data analysis reveals the scale of US-Israeli strike damage and the heightened stakes of a return to all-out war.
Krishna Karra, is Bloomberg News Senior Satellite Imaging reporter. He discusses how they received access to these images and the extent of what they learned about the strikes in Iran.
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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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The people, companies and trends shaping the global economy.
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF.
In another reversal, US President Donald Trump announced a unilateral, open-ended extension of the ceasefire in the Iran war. Now, there’s no peace, but no active war either. This may become the new normal: a fragile ceasefire without a formal deal, with tensions simmering, sporadic flare-ups, and oil near $100.
Indefinite Extension
The US and Iran were discussing returning to talks in Islamabad on the eve of the two-week ceasefire deadline. Trump warned he was unlikely to extend the truce and would resume bombing Iran if they failed to show. Tehran held its line: no talks while the US blockade remained.
That pointed to a return to hostilities unless someone blinked. Trump blinked first. The political cost of war was rising for the US, as was its economic toll. The prospects for a win were becoming more elusive by the day. Tehran’s goal remains the same: survival and imposing a global cost for the war. It can’t afford to blink, and it didn’t.
What does this mean for the war? There’s no deal so there’s no lasting peace. There’s no high-intensity war either. Instead, the war may be settling into a prolonged middle ground:
No formal end to the hostilities between the US/Israel and Iran because the underlying differences remain unresolved. These include issues such as Iran’s nuclear program, the Strait of Hormuz, and Lebanon.
Escalation, on the other hand, is costly. It draws the US deeper into a conflict it doesn’t want and more entrenched in a region it would prefer not to focus on. Tehran, weakened but also emboldened, will hold the Strait of Hormuz and the global economy hostage. And Arab Gulf states are likely to face renewed attacks.

Today's show features:
Ray Takeyh, Senior Fellow for Middle East Studies at Council of Foreign Relations
Seth Jones, President of Defense and Security Department at CSIS on Defense and Counterterrorism measures in Iran War
Jay Hatfield, CEO and CIO at Infrastructure Capital Advisors
Seth Fiegerman, Bloomberg AI Editor on SpaceX Has Deal for Right to Acquire Cursor for $60 Billion
Michael Stivala, President & CEO at Suburban Propane
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