October 25, 2026: Preps for Iran Escalation, VW to Open Audi Georgia Plant, More

0:00 News when you want it with Bloomberg News Now. I'm Ed Kalecki. The U.S. is evacuating diplomats and staff from embassies across the Middle East amid increased threats from Iran and Houthi rebels in Yemen. Bloomberg's chief emerging markets economist Zia Dowd says all sides are leading to an escalation.

0:21 There is basically threats from all sides that they're going to escalate and attack targets. There is a withdrawal of diplomats from the region. And there is a military buildup that's taking place now. And even if you look at the differences, and the differences include elections in Israel and the U.S. are upcoming, include the price of oil is now more responsive to the tensions than they were before.

0:45 these also point to a higher, not a lower, likelihood of the war resuming.

0:50 Bloomberg's Zion Dowd. The threats pushed oil prices higher Friday with Brent crude topping $ 116 a barrel. That's the highest in five months just after the war against Iran started. Volkswagen will build a new factory for its premium Audi brand in Georgia and expand a facility in South Carolina as President Trump looks to notch a political win in the final stretch of the midterm election cycle. The German automaker is also hopeful the announcement will yield potential relief from tariffs that have severely eroded profits. Volkswagen will build a new plant in Macon, Georgia, to manufacture the Audi Q7, Q8 and Q9 models, with construction of the Greenfield project due to begin soon. The facility will have the capacity

1:33 to produce 200,000 vehicles per year. Clashes erupted in Paris as a mass march drew to a close Saturday afternoon. with more than 400,000 people rallying across France over school funding and soaring living costs in a fresh challenge to President Emmanuel Macron. The government said police made nearly 1,000 arrests.

1:53 The Paris march began peacefully a week after widespread rioting and looting during protests across the country. But near the demonstration's endpoint in eastern Paris, masked protesters hurled objects and fireworks at police, who answered with clouds of tear gas. deafening sound grenades and jets of water cannons. Officers with megaphones urged protesters to disperse. Some demonstrators panicked as tear gas canisters landed in their midst, scattering with screams. The Interior Ministry put nationwide turnout at 410,000, fewer than the 550,000 it said protested last weekend, while the CGT union that helped organize some of Saturday's protests estimated nearly 800,000.

2:36 A tanker loaded with Russian diesel is now headed to the U.S., marking the first ship into fuel under President Trump's new import deal. Daniel Tannenbaum is a geo-strategy practice leader for Oliver Wyman and a senior fellow at the Atlantic Council.

2:50 He says.

2:51 it's illegal to import Russian oil.

2:53 Technically, customs should be turning away this vessel when it shows up at the U.S. unless they do something to try and bypass it. But that is the question. There are no reported transactions for purchasing this diesel. And I'll also note, I think this initial tranche is like half a day's worth of supply of diesel in the U.S.

3:13 But it's like, what is this really buying the American consumer?

3:17 The Atlantic Council's Daniel Tannenbaum, the deal is designed to help lower diesel prices in the U.S. ahead of the midterms, but House Republican Brian Fitzpatrick has introduced a bipartisan measure to nullify the Treasury Department's waiver on Russian oil and prevent it from issuing waivers on Russian energy in the future.

3:34 The House Oversight Committee is ramping up an ongoing probe into pharmacy benefit managers. Bloomberg's Nathan Hager reports from Washington.

3:43 Pharmacy Benefit Managers, or PBMs, are third-party groups that handle prescription programs for health insurers, big companies, Medicare Part D, and government plans. In separate letters to CVS Caremark, Express Scripts, and OptumRx, House Oversight Chair James Comer accused them of targeting independent pharmacies with audits for supporting legislation aimed at bringing down drug costs. Comer's asking the PBMs to turn over documents, communications, and briefings on those audits no later than November 6th. In Washington, I'm Nathan Hager, Bloomberg Radio.

4:13 The Democrats' midterm map has expanded, and Bloomberg's Monica Ricks reports it's a big warning sign for Republicans.

4:20 Republicans started the 2026 midterm election cycle with the Senate map as one of their biggest advantages, but it hasn't turned out that way. Polling and early voting now suggest momentum is with Democrats, who need to net just four seats to win the chamber. And party insiders say the red wall includes states such as Iowa, Ohio, and Alaska. Georgia, North Carolina, and even Texas could now be toss-ups. President Trump has defensively campaigned in GOP strongholds, but even he's acknowledged his party's in a challenging position. Monica Ricks, Bloomberg Radio.

4:54 Game four of the WNBA finals Saturday afternoon. Golden State defeated Atlanta 67-62. That series is now tied at two games apiece. That's news when you want it with Bloomberg News Now. I'm Ed Kalecki. This is Bloomberg.