Trump Mulls Pulling Blanche Nomination Temporarily | Balance of Power 07/30/2026

Big Tech Earnings: Amazon Soars, Apple Slips [00:00:00]

• Amazon shares climbed 8% after hours, driven by stronger-than-expected revenue from its AWS cloud business, which grew 37%.
• Apple's stock dropped nearly 5% after the bell, despite beating earnings expectations, due to missed estimates on services and slower China sales.
• Ed Ludlow reports that Amazon's AI business has a $25 billion run rate, and its chip business running on in-house silicon also has a $25 billion run rate.

  "The AI business has a $25 billion run rate. Their chip business, where they rent out cloud capacity, but specifically running on their in-house silicon, a $25 billion run rate."

Political Standoff Over Attorney General Nominee [00:01:00]

• President Trump threatened to temporarily withdraw Todd Blanche's nomination for attorney general rather than yield to two Republican senators blocking his confirmation.
• Senators John Cornyn and Tom Tillis are demanding written proof that Trump's proposed "anti-weaponization fund" is officially dead.
• Chris Strom explains that if the nomination is withdrawn, Blanche would remain acting attorney general, but confirmation in a new Congress is not guaranteed.

  "I have no objection to temporarily withdrawing Todd's name if they do not do the right thing and putting him back after Cornyn and Tillis are out of office."

Escalating Conflict with Iran [00:03:00]

• The U.S. launched a major round of strikes on Iran after President Trump vowed to retaliate for Iran's attacks on U.S. assets.
• Former Defense Secretary Mark Esper discusses the risks of pulling the U.S. deeper into a widening regional war.
• Esper suggests economic strangulation through blockades of all entry points to Iran as a viable option, though it would take time and patience.

  "So to me, you should strangle them. It would take a long time. It would take patience and discipline on our side. And, of course, it would mean higher energy costs for everybody around the world."

Market Performance and AI Enthusiasm [00:04:00]

• The Nasdaq 100 gained over 3%, and the Philadelphia Semiconductors Index rose 8%, with tech driving most of the market's gains.
• Oil prices pulled back, with Brent Crude lower by 1.5% and WTI around $83 a barrel.
• The Federal Reserve kept rates unchanged, leading to falling yields at the front end of the curve, but 30-year Treasury yields remain above 5%.

  "We do see Microsoft completely changing sentiment in the market, pushing major indexes higher."

Hedge Fund Collapse and AI Unwind [00:05:00]

• A 25-year-old former OpenAI employee's hedge fund, Situational Awareness, saw its assets plummet from over $20 billion to about $10 billion, with Citadel stepping in to buy its public stock bets.
• This collapse is linked to the recent AI stock downturn, highlighting the risks of heavily betting on artificial intelligence.
• The situation serves as a stark example of AI enthusiasm being checked by market realities.

  "This is essentially just one of those stories of AI enthusiasm getting checked. And, of course, here by one of those most high-profile names that a lot of Wall Street is keeping an eye on."

Rivian's Narrowing Losses and Software Growth [00:06:00]

• Rivian's losses are narrowing, and they launched their mass-market R2 product.
• The company's software and services business is growing faster than its car business, with a joint venture representing about 60% of software and services revenue.
• Rivian's CFO highlighted a recurring revenue stream from fleet OS subscriptions for commercial vans sold to Amazon.

  "The joint venture represents about 60% of our software and services revenue, and that will decrease over time, especially as we introduce advanced autonomy into a growing car park and see additional sales of software features to our customers."

Amazon's CapEx Outlook and AI Investment [00:07:00]

• Amazon announced an expected capital expenditure of $220 billion by 2026, an upward revision from previous guidance, primarily for AI investments.
• CEO Andy Jassy stated that this significant investment is largely driven by AI.
• Despite the high CapEx forecast, Amazon shares continued to rise, indicating market confidence in their AI strategy.

  "Amazon is expecting to spend $220 billion on CapEx in the year 2026. No surprise. Jassy says that is mostly on AI."

Fed Credibility and Inflation Concerns [00:08:00]

• Markets reacted negatively to the Federal Reserve's messaging, with Fed credibility taking a hit according to some economists.
• Inflation remains a concern, despite recent data showing it hasn't accelerated over the past quarter, as prices continue to rise.
• The Fed is in a difficult position, balancing inflation concerns with a labor market that is not as robust as desired, and wages failing to keep up with inflation.

  "I think Fed credibility took a hit yesterday. It doesn't mean it's not recoverable. I just think in the outcome of the meeting was we're not sure what you're doing."