Benoit Foucault (3:01)

Yeah, I mean, what happened really in the past, I would say two days was an incredibly sort of increasingly bearish view from U.S. president Donald Trump about the outcome of the U.S. iranian talks over Tehran's nuclear program. And in response, the Iranian side, the Iran defense minister said, well, you know, we know people are saying that if the deal isn't struck, then an attack will come next and we will respond by attacking U.S. bases. So that's kind of a variable escalation from what I hear from US Officials were the key factor in deciding what is a relatively limited piece of action in terms of withdrawing. Like you say, non essential stuff. But the big picture, though is we're still at the moment in pressure tactics. We're not on the cusp of war as far as I've heard from U.S. officials and Iranian officials.

Luke Vargas (3:53)

And we should note, more talks are scheduled for this weekend. So things aren't so bad that the two sides aren't able to meet.

Benoit Foucault (4:00)

Absolutely. I mean, if we were in a danger zone, I mean, they'd pull out from the talks. And yes, U.S. special envoy Stephen Wyckoff is going to fly to Muscat in Oman to meet his Iranian counterpart. Obviously, that's going to happen in a very tense context. What is at stake now is going to look much more significant. You know, the risk of conflict in the region. Obviously, Israel has promised so far to President Trump not to carry a strike. But obviously if the talks collapse, the risk of strike from Israel, possibly with US Assistance becomes very high.

Luke Vargas (4:31)

You mentioned earlier Iran threatening strikes on US Bases if these talks go sideways or fall apart. But putting posturing aside, it does seem as if markets are indicating to us that investors see an increased geopolitical risk truly is present here.

Benoit Foucault (4:51)

Yeah, I mean, number one, after two months of talks, the talks are completely deadlocked. Right. The Iranian side wants to continue enrichment in its nuclear program. The US Says it should be zero enrichment. So they are nowhere near an agreement. So that's one aspect. Now, there is a concrete element that followed the pullout of the personnel, and that was a UK US Sort of joint force on maritime security in the Persian Gulf said that the risk was now at an elevated threat and that shippers and crews should be very careful about any suspicious movement. They should increase their awareness and security. So the oil price Yesterday rose by 5% on the back of these concerns about regional escalation and knowing that one of the biggest oil routes is the Persian Gulf and an economic actor. You think, well, there's going to be a physical risk and it's taken seriously.

Luke Vargas (5:45)

I've been speaking to Wall Street Journal correspondent Benoit Foucault. Benoit, thank you as always for the update.

Benoit Foucault (5:50)

Thank you. You're welcome.

Luke Vargas (5:56)

Back in the U.S. california Governor Gavin Newsom is set to face off with the Trump administration in a San Francisco courtroom today over the president's deployment of National Guard units and Marines to the state in order to aid in deportation efforts. The administration is leaning into the president's authority under the militia act of 1908, which enables units to be called into federal service during specified emergencies, including the threat of foreign invasion or rebell against the US Government. However, California argues in legal papers that nothing close to those conditions exist, noting that most demonstrators have been peaceful and that state and local leaders condemned incidents of violence and vandalism. So far, around two dozen businesses in downtown Los Angeles have been looted and hundreds more vandalized after daytime protests in recent days turn violent at night. The imposition of a curfew starting Tuesday night has helped to tamp down criminal activity, though it's also forced some establishments, including restaurants and theaters, to limit their hours. Despite that impact, Mayor Karen Bass suggested yesterday the measures would remain in place. Here she was courtesy of ABC7 Los Angeles.

Reba McEntire (7:08)

The emergency declaration that I signed yesterday does not have a time limit to it, and so the curfews will go on as long as they are needed. But you know, it's really kind of interdependent on what the response is from the federal side. If there are raids that continue, if there are soldiers marching up and down our street, I would imagine that the curfew will continue.

Luke Vargas (7:30)

We've left a link to Reporting from the Journal's Ben Fritz on how LA business owners are faring during protests in our show notes. And Health Secretary Robert F. Kennedy Jr. Has announced eight new picks for a key vaccine panel, some with ties to vaccine skeptic groups. The move comes two days after he abruptly dismissed all 17 prior members of the Advisory Committee on Immunizations Practices, which advises on vaccines and when children and adults should receive them. Kennedy says the panel will apply gold standard science to both new and existing vaccine guidelines, though critics warn the people have no scientific expertise related to vaccines. Coming up, we'll look at signs that the IPO market could be finding its footing again after the tariff shock earlier this year. And investor excitement builds ahead of the expected approval of a new shot to prevent hiv. We've got those stories and more after the break. This message comes from Viking, committed to exploring the world in comfort. Journey through the heart of Europe on an elegant Viking longship with thoughtful service, destination focused dining and cultural enrichment on board and on shore. And every Viking voyage is all inclusive with no children and no casinos. Discover more@viking.com turning to markets now There are signs the IPO market is finding its footing again after President Trump's trade war earlier this year prompted several companies to cancel their plans to list yesterday, shares in space and defense tech company Voyager Technologies climbed in their New York Stock Exchange debut. Voyager is working with companies including Airbus, Mitsubishi, MDA Space and Palantir on the Star Lab space station planned for low Earth orbit. Finance editor Alex Frankos has more.

Alex Frankos (9:32)

We had this Voyager IPO yesterday and then recently Circle Financial, the stablecoin company, which had a kind of blockbuster IPO in that the stock price has just gone absolutely ballistic. We haven't seen that kind of thing in a while, and so that's giving people a sense that the market is open again, and that's something that's been missing for a very long time. It's been a real winter for IPOs, so people are hoping to see a return to that kind of dynamism. That said, the actual volume of IPOs, the amount of money raised, the number of companies, is still pretty anemic.

Luke Vargas (10:03)

Shares in Oracle jumped after hours on expectations for dramatically higher revenue growth in its cloud applications and cloud infrastructure businesses. This as the company logged double digit revenue growth in the most recent quarter at almost $16 billion. And finally, it is shaping up to be a breakthrough month for HIV prevention, with the US Food and Drug Administration widely expected to approve a groundbreaking injection to ward off the once devastating disease. That is raising investor excitement around Gilead Sciences, the dominant player in HIV treatment, whose shares have surged since reporting last June that just two annual shots of the drug prevented all HIV infections in a study of women and girls. A further study in men is to be completed late this year or early next. Journal columnist David Wehner says Gilead is hopeful the shot can restart its growth engine.

David Wehner (11:04)

This is a chance to finally grow and to finally break through this range that its stock has traded over the last ten years or so. About a decade ago, the company launched breakthrough hepatitis C cures essentially that were seen as fantastic growth opportunity, and the stock soared initially on them. But the stock then fell back after most patients had been treated and the market essentially dried up. The company then really fell into this value trap territory for a long time, weighed down by sluggish growth and a string of underwhelming deals as it tried to break into the cancer market with moderate success. Gilead for years tried to move beyond hiv, but it's really the HIV prevention market that's really helping investors see this long opportunity.

Luke Vargas (11:53)

And that's it for what's news for this Thursday morning. Today's show was produced by Kate Bullivant and Pierce Lynch. Our supervising producer is Sandra Kilhoff. And I'm Luke Vargas for the Wall Street Journal. We will be back tonight with a new show. Until then, thanks for listening.

Reba McEntire (12:20)

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Luke Vargas (12:42)

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