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BackCNBC Daily Open: Ukraine's Starlink whodunit
CNBC Daily Open: Ukraine's Starlink whodunit
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CNBC World10 hours agoBusiness2 min read

CNBC Daily Open: Ukraine's Starlink whodunit

U.S. staff withdrawal from Saudi Arabia drives oil prices up, while tech giants announce major job cuts tied to AI and efficiency.

Quick Look

  • Meta and Tesla beat estimates as U.S. staff withdrawal from Saudi Arabia pushes Brent crude above $110.
  • Meanwhile, global tech fixes PHP security flaws, eBay and Barclays announce layoffs, and Starlink faces a slowdown inquiry.

AI-generated summary

Why It Matters

U.S. removes non-emergency staff from Saudi Arabia amid escalating Houthi attacks, pushing oil past $110 a barrel.

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Hello, this is Anniek Bao writing to you from Singapore. Welcome to another edition of CNBC's Daily Open.

Meta and Tesla did their part for the bulls, topping estimates after the bell.

In the Middle East, the U.S. pulled its non-emergency staff from Saudi Arabia, sending Brent above $110 a barrel, and Iran strike plans are reportedly ready once the Nov. 3 midterms are done.

Meanwhile, a PHP flaw knocked government websites worldwide offline, and there's a Starlink whodunit emerging, with Trump saying he wasn't involved and doesn't know who was.

The U.S. ordered non-emergency government employees and their families to leave Saudi Arabia as Houthi attacks on the kingdom escalate.

The move comes as the U.S. and Israeli militaries have drawn up specific plans for renewed strikes on Iran after next month's midterm elections, the New York Times reported, citing unnamed U.S. officials.

Meanwhile, oil prices topped $110 a barrel and gas prices in Asia and Europe are at multiyear highs and could weigh on households for longer.

Starlink whodunit

President Donald Trump and Elon Musk have both been suspected of being behind Ukraine's Starlink slowdown. The Wall Street Journal reported that Musk ordered the slowdown of a version of Starlink that the country relies on in its war with Russia.

Musk and Trump, who have both recently criticized Ukrainian President Volodymyr Zelenskyy, discussed the move "soon after" it became public, two people told the Journal. Trump, however, has denied any role. "I don't know who did it, but I was not involved," he said as he left the White House for a campaign rally in South Carolina.

U.S. envoy Steve Witkoff called Vladimir Putin a "true humanitarian" on Wednesday after Russia freed an American prisoner. Witkoff visited Russia for talks on ending the war in Ukraine and yet Kyiv was not part of the discussions.

SpaceX shares jumped as much as 10% after an earnings beat, and Musk hinted at a tie-up with Tesla . Options trading in Meta and Tesla leaned bullish ahead of their reports Wednesday after the close, with Meta seeing more calls than puts.

Meta's Mark Zuckerberg has committed to remaining a California resident, or living wherever Meta is headquartered, for eight years, according to a company filing. The pledge is part of the company's creation of a new class of non-voting Class C shares and allows relocation only under "material unforeseen circumstances."

At Nvidia's GTC Berlin event later on Thursday, CNBC's Arjun Kharpal is set to sit down with Jensen Huang for an exclusive interview around 10 a.m. U.K. time.

Tech hazard

The tech world is also racing to implement fixes after the discovery of critical security vulnerabilities in software used to power much of the internet. The software, known as PHP, is an open-source programming language widely used to power websites and web applications. The discovery of the flaws prompted urgent warnings from governments worldwide.

As AI and jobs become the hot new topic for global central bankers, eBay said it will cut about 1,000 jobs, or roughly 9% of its workforce, in its second round of cuts this year, as it streamlines operations and focuses on its fastest-growing areas. The company said it will keep hiring in "priority areas aligned with our strategy."

U.K. bank Barclays said Thursday it plans to cut 5,000 jobs — about 5% of its total workforce — as part of an artificial intelligence-linked efficiency push.

The reductions come from "organizational simplification and technology change efficiency driven by AI," the bank said, with cuts felt mainly in support functions, including developers, Barclays added.

What to Watch

AI outlook — possibilities, not facts

  • Nvidia CEO Jensen Huang to be interviewed at GTC Berlin.

    Very likely · Within hours

Open Questions

  • Who ordered the Starlink slowdown in Ukraine?
  • How severe will the global impact of the PHP flaw be?

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This article was originally published by CNBC World.

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