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Luke Vargas (0:18)

Ukraine claims Starlink is throttling its internet speed, foiling its attacks against Russia. Plus, we've got the scoop as Yemen's Houthis pursue the creation of an advanced, homegrown missile.

And the EU tries to hold off foreign competition as Chinese carmakers flex their might at the Paris Motor Show.

Stephen Wilmot (0:37)

The European Union is now talking about a $1 billion a day deficit, trade deficit with China. There's been a real sea change, I would say, in the geopolitics of this.

Luke Vargas (0:46)

It's Wednesday, October 14th. I'm Luke Vargas for the Wall Street Journal, and here is the AM Edition of What's News, the top headlines and business stories moving your world today.

Ukraine is claiming that the connection speeds of its Starlink satellite internet terminals are being limited, complicating drone missions over Russian-occupied areas of the country. An advisor to President Volodymyr Zelensky said Ukraine had received no warning about the restriction, which comes as President Trump has called for an immediate energy ceasefire in the war. SpaceX, which produces Starlink, didn't immediately respond to a request for comment. Meanwhile, we are exclusively reporting that Houthi militants in Yemen are attempting to build an advanced new missile using parts from China. Journal reporter Laurence Norman has more.

Laurence Norman (1:39)

According to a report that we obtained from Conflict Armament Research, which is a weapons expertise organization, the Houthis have been bringing in the key components for a medium range advanced ballistic missile that they have in the past received in limited quantities from Iran. The Houthis are not only a threat to the Red Sea shipping lanes, as we've seen over the last week, they're able to strike deep into Saudi Arabia. They have also repeatedly hit Israel, including a strike very near the Ben-Gurion airport in Tel Aviv in May of 2025 So, armed with Iran's missiles, they have already been a powerful threat. If they can produce these type of medium range missiles, they can go up to 1800 kilometers at home, at will, in very well guarded, hidden missile production sites, then we have an even bigger problem with the Houthis than we thought we had.

Luke Vargas (2:38)

China says it's respecting a UN ban on selling arms to the Houthis. Overnight, Saudi Aramco's headquarters were hit by a Houthi strike, highlighting just how exposed the kingdom's oil assets are to the conflict. Thanks in part to continued attacks on refineries, fuel prices remain nearly double pre-war levels, and according to the International Energy Agency, supplies will remain tight well into next year.

It's said that worldwide diesel supply dropped by 1.7 billion barrels a day in the third quarter, pushing the fuel market into a deficit just ahead of peak winter demand. That's set to strain businesses even more, raise inflation risks, and squeeze refiners already facing soaring shipping and crude delivery costs.

In a powerful signal of continued strong AI demand, Dutch chip machine supplier ASML is boosting its guidance for the third time this year. Its stock is gaining on that news. Reporter Mauro Oro crunched the numbers in ASML's quarterly report and said that its margins are holding steady and its order book already filling up for 2029 and 2030

Mauro Oro (3:49)

Chief executive Klikstofke has singled out AI as the main driver of demand for several quarters now. ASML's clients are big chip makers like TSMC, Samsung, and Intel, and they are investing heavily on chip production as their own customers want more and more for personal electronics, vehicles, and especially data centers. And clearly they need ASML's machines to ramp up production. It was in July when ASML said it planned to boost capacity of its machines. At the time, it was looking at a 30% boost for 2027, followed by another 30% increase in 2028

Now, CEO Klikstofke said it was becoming increasingly clear that 30% next year and again in 2028 would not be enough for ASML to meet demand from its own customers. And the company is now looking at ways to boost output even more. Unsurprisingly, ASML stock has grown significantly this year, given the demand environment. It's up about 70% since January and over 80% in the past 12 months. Of course, there could be a few bumps on the road, as semiconductor stocks tend to be quite volatile, but if it holds its course, it's on track to become Europe's first company that will be worth over a trillion dollars.

Luke Vargas (5:11)

Meanwhile, China is reporting a major jump in exports for September, topping economist forecasts on the back of strong demand for its green tech and AI-related products. As we'll discuss later, auto shipments surged 56%, driven by strong overseas appetite for Chinese EVs. That export strength could heighten tensions with major trade partners like the US and the EU, which has pressed Beijing over a widening trade imbalance.