bloomberg-live Transcript

603 segs ← CIO Feed

Full Transcript

Showing latest 47 of 603 segments. Ads filtered. Auto-refreshes 90 s.
17:53
PDT
IYCT mall is one of the world's largest, located 40 kilometers from Kuala Lumpur.
IYCTKuala LumpurMalaysiaIran
– Malaysia's consumption sector has been booming, with increased spending power.
– Three million visitors are recorded monthly at IYCT mall.
– The integration of social elements in malls is a growing trend.
– Despite geopolitical tensions, mall visitation continues to rise.
retail expansionconsumer spendingreal estate development
▸ Full transcript
We have a sports center, pickleball courts, cinemas, and all these other social elements that you normally see as individual establishments have now been brought into malls in Malaysia. Because some of them have huge land banks, they're able to incorporate more and more of these elements into a single real estate complex. Are we seeing too much development? Yes, I mean in Malaysia, for example, the amount of malls has just skyrocketed, and now we have IYCT mall, which is one of the world's biggest malls located in Malaysia. It's actually located some 40 kilometers out of Kuala Lumpur itself, and it's tapping into this growing suburban population that is booming in Malaysia, especially in Kuala Lumpur, where people live. The consumption sector in Malaysia has also been booming for the past two to three years. The spending power of the people has been going up as well. Since it's a very much consumer-driven economy, malls like these are able to attract more and more people to come in. There are three million visitors to come to that mall in a year, sorry, in a month. That number is climbing, even during the Iran war; that number has continued to climb because...
Analysis

Malaysia's retail sector is experiencing significant growth, with the emergence of large malls like IYCT, which attract millions of visitors monthly. This trend reflects a booming consumer-driven economy, particularly in suburban areas around Kuala Lumpur, despite external pressures such as the Iran war.

The rapid expansion of malls indicates a shift in consumer behavior and spending power, suggesting that investors should closely monitor retail real estate developments. The integration of entertainment and lifestyle elements into malls may redefine consumer experiences and drive foot traffic, presenting opportunities for retail and real estate sectors.

17:51
PDT
Emerging market stocks up over 2%.
IndiaPhilippinesIndonesiaSouth KoreaKorean wonUpland Bird CompaniesRamanaanEMSThe South KoreanSoutheast AsiaKuala LumpurCL=FDXY
– Korean won gaining despite significant outflows.
– $30 billion equity outflow from India noted.
– Retail spaces in Southeast Asia evolving into lifestyle centers.
– Oil prices falling amid easing tensions around Iran.
emerging marketscurrency trendsretail sector evolutiongeopolitical risks
▸ Full transcript
You're seeing EMS gaining ground for the first time in three sessions. Of course, we have seen the immense pressure when we have our risk-off sentiment, especially around tech earlier this week. But when it comes right now to emerging market stocks, we're seeing the upside of more than 2 percent. And even currencies gaining ground. And remember, Asian currencies have been under pressure. Of course, we have seen that safe haven demand on the dollar. Not so much in the overnight session, which saw the war stay since early May, given that we are seeing easing of tensions around Iran and oil prices falling. But because of all of that risk-off sentiment, we have seen these equity outflows from the likes of India, for example, $30 billion when it comes to oil and inflationary pressures in the Philippines' fiscal concerns in Indonesia sending that currency to record lows. The South Korean won right now is seeing some gains, but it's been pressured, especially as we saw $78 billion of net foreign stock outflows just this year. Sherry, malls in Southeast Asia are seeing a surge in demand as retail spaces expand into entertainment and lifestyle centers. Upland Bird Companies reported, Ramanaan joins us now from Kuala Lumpur. This idea of the third place of gathering multi-generational gatherings across Southeast Asia.
Analysis

Emerging market stocks are gaining traction, with an upside of over 2 percent, despite previous risk-off sentiment affecting tech stocks. Asian currencies, particularly the Korean won, are also seeing some gains as tensions around Iran ease and oil prices fall, although significant equity outflows persist in markets like India and Indonesia.

The shift towards retail spaces expanding into entertainment and lifestyle centers in Southeast Asia indicates a changing consumer landscape. This trend may present investment opportunities as malls adapt to meet the demands of multi-generational gatherings, suggesting a potential growth area in the retail sector.

17:45
PDT
MediaTek's market value increased by 130 billion amid AI optimism.
MediaTekGoogleArchip TechnologiesNVIDIAReal WorldHANMIKeoxiaFOMCBOJAnthony StevensJeannie YuAI
– Investors are cautious yet hopeful about MediaTek's future orders from Google.
– The robotics industry lacks standards for measuring dexterity, hindering AI integration.
– Real World is collaborating with NVIDIA to establish benchmarks for robotics.
– Archip Technologies is also benefiting from the AI market shift.
AI integrationrobotics standardssemiconductor growth
▸ Full transcript
Yes, that's true. So, now the problem of this in the humanoid industry is that there are so many companies, so many hardware companies that compete with each other to provide the better hardware out there, but none of their AI companies can provide that level of their AI. So we are an AI company that provides the robotics foundation model to control the very complex level of the hardware. So why do we focus on the dexterity? Because I think about the robot hand, there are so many joints out there, so-called degrees of freedom. So now, on only one hand, we have 20 plus degrees of freedom. So it's extremely hard to control. So that's why we are now focusing on providing a level of AI capability. I actually came to see one of your robots or the AI model that goes into one of your robots in the Humanoid Summit in Tokyo recently, and you were really trying to catch and move these very small socks. Tell us a little bit about how realistically you will deploy them. Yeah, so now we are working together with a lot of factories and hospitality service companies and logistics companies. Their problem is that there are always objects to do some pick and place movement because they use conveyor belts and automation systems. That's why in our model we provide some motion awareness. So they are the robotics foundation models. They don't care about the moving object.
Analysis

MediaTek is positioned for a strong quarter, with investors optimistic about its AI chip collaboration with Google, potentially capturing a significant market share in the ASIC market. The trend of hyperscalers being cautious with costs while increasing spending on tailored application-based chips presents a broader opportunity for MediaTek and similar companies in Taiwan, like Archip Technologies.

The focus on dexterity in robotics, particularly in humanoid AI, highlights a gap in industry standards that could limit the effectiveness of AI applications in complex hardware. Collaborations, such as that between Real World and NVIDIA, aim to establish benchmarks that could enhance the commercial viability of robotics solutions across various sectors, including logistics and hospitality.

17:42
PDT
Real World partners with NVIDIA for robotics standards.
Real WorldNVIDIAChang He RuiAICEONVDA
– Focus on dexterous manipulation in humanoid AI.
– Lack of benchmarks hinders industry progress.
– Standardized metrics could unlock commercial value.
– Growing demand for advanced robotics solutions.
robotics standardsAI developmentdexterous manipulation
▸ Full transcript
Standards for humanoid robotics. The company says so-called dexterous manipulation is emerging as a decisive frontier in humanoid AI development. Let's get more with the founder and CEO of Real World, Chang He Rui. Chang He Rui, really good to have you with us. The hands are so difficult when it comes to robotics. We've known for a very long time. But now you're collaborating with NVIDIA. Tell us about the depth of that partnership and why industry standards are needed. Yeah, because of the dexterities and there are so many approaches to providing AI to control the level of the dexterities for the humanoid, but there are not so many standards out there. For example, there is no dexterity benchmark. That means if you provide some AI to control the level of dexterity, but you cannot measure the level of the dexterity. So that's why we teamed up with NVIDIA to design the benchmark test and also we agreed to provide the data partnership, so designing data standards for their startups or the other companies collecting data out there. What's the commercial value of such industry standards? So because there is a lot of demand in the logic corporations to adopt this level of dexterity for their walking place, but they cannot measure the robotics hardware company and this AI company can provide their level of dexterity.
Analysis

Real World is collaborating with NVIDIA to establish industry standards for dexterous manipulation in humanoid robotics, addressing the lack of benchmarks in this area. This partnership aims to create measurable standards for AI control of dexterity, which is crucial for robotics hardware and AI companies to meet corporate demands.

The collaboration highlights a growing recognition of the need for standardized metrics in robotics, which could unlock significant commercial opportunities. Smart money should note that as demand for advanced robotics increases, companies that can provide measurable standards will likely gain a competitive edge in the market.

17:40
PDT
HANMI's stock rose over 4% after announcing a significant investment.
HANMIMediaTekNVIDIAEY ParthenonGoogleEY
– The semiconductor sector is experiencing heightened investor enthusiasm.
– Companies are focusing on automation and robotics to meet consumer demands.
– MediaTek's tailored chip strategy may enhance its market position in AI.
– Cost management is becoming crucial for tech firms amid rising investments.
automation trendssemiconductor investmentAI chip market
▸ Full transcript
With same-day groceries and next-day deliveries, consumer expectations for speed and convenience have completely shifted. Automation and robotics will have an important role to play in the future. The world of size may change. Will your business shape the future or be shaped by it? How will we capture the imagination of tomorrow's consumers? Overcome operational constraints to focus on future growth and unlock economic and social prosperity through environmental responsibility. With EY Parthenon and EY's full spectrum of services, we're reimagining the enterprise to shape the future with confidence. Take a look at how we're trading in the tech sector. Of course, we continue to see the upside when it comes to semiconductors. The likes of HANMI, for example, gaining more than 4 percent. The company now saying that they will spend 50 billion won to buy a mistake in space. X of course, a lot of exuberance on that sector. Keoxia, memory chip makers.
Analysis

The tech sector continues to show strong momentum, particularly in semiconductors, with companies like HANMI gaining over 4% following their announcement of a 50 billion won investment in a new project. This exuberance reflects a broader trend in the industry, where firms are increasingly focused on automation and robotics to meet evolving consumer demands for speed and convenience.

Smart money should note that the shift towards tailored application-based chips, as seen with MediaTek's strategy, positions companies to capture significant market share in the AI sector. This trend indicates a potential shift in competitive dynamics, favoring firms that can innovate while managing costs effectively.

17:38
PDT
MediaTek is gaining market share in the AI chip sector.
MediaTekGoogleNVIDIAArchip TechnologiesAIGOOGLNVDA
– Hyperscalers are prioritizing cost-effective solutions.
– Archip Technologies is also benefiting from a shift towards AI.
– Investors are recognizing the value in tailored chip production.
– The trend indicates a broader market shift in tech spending.
AI chip marketcost-effective solutionshyperscaler spending
▸ Full transcript
MediaTek's approach is to produce application-based chips for specific clients like Google, making those tailor-made chips which could carry a lower cost compared to NVIDIA's GPUs. This trend has been recognized by investors, given that hyperscalers are spending more but are more cautious with their costs. This broader trend positions MediaTek as one of the best beneficiaries. The company captured this opportunity quite timely, and this trend is also seen in other companies in Taiwan, such as Archip Technologies, which is a smaller player compared to MediaTek but is also doing well by shifting their focus towards the AI asset market.
Analysis

MediaTek is positioned as a key beneficiary in the AI chip market, producing application-based chips tailored for clients like Google, which allows for lower costs compared to competitors like NVIDIA. This trend reflects a broader shift among hyperscalers towards more cautious spending, indicating a potential for sustained growth in the AI sector for companies that adapt quickly.

17:34
PDT
MediaTek forecasts best quarter on record.
MediaTekGoogleECBFOMCBOJTaiwanEuropeAIASICAnthony StevensJeannie YuGOOGLPRIVATE
– Partnership with Google boosts investor confidence.
– Market share in ASIC market expected to reach 10-15%.
– Investors are optimistic about AI's role in MediaTek's growth.
– Euro volatility at year lows indicates reduced risk in Europe.
AI investmentsemiconductor growthEurozone stability
▸ Full transcript
So that people can get comfort around risk. And we're definitely seeing that in Europe; Euro volatility is at year lows and justifiably so. As a result, Europe may be a less exciting market than something that we're used to in our part of the world. But the sharp ratio on that rally is looking better. Anthony Stevens there, our Bloomberg markets have reported with the latest on the ECB. And of course, we're looking ahead to decisions out of the FOMC and the BOJ next week as well. Now, we'll be watching the Taiwanese market at the open, especially one chip maker, MediaTek, poised for the best quarter on record. Investors are now betting a shift into AI can help it move past the overhang of a struggling older tech business. For more, let's bring in the Asia stocks reporter, Jeannie Yu. Jeannie, really a lot of optimism, especially around the deal with Google. Yes, I think this is a very typical turnaround story for MediaTek. If you're looking at this quarter, it's up like adding 130 billion in market value. I think many investors were kind of underestimating how MediaTek has been progressing with Google in their AI chip business. Right now, they're forecasting the market share in the ASIC market to be 10 to 15 percent. And the analysts are expecting this estimate to be quite cautious. There is a potential for MediaTek to grab more orders from Google.
Analysis

MediaTek is poised for its best quarter on record, driven by optimism surrounding its AI chip business and a partnership with Google. Investors are betting that this shift into AI will help MediaTek overcome challenges from its older tech business.

The significant increase in market value, estimated at 130 billion, suggests that smart money is recognizing MediaTek's potential in the ASIC market, with forecasts indicating a market share of 10 to 15 percent. This turnaround story highlights the importance of AI in driving growth for traditional tech companies.

17:32
PDT
Korean construction stocks are sharply rising due to heavy investments.
Korean construction namesChinese YuanToyotaKioshiaEuropean Central BankECBThe Chinese YuanPRIVATE
– The Chinese Yuan is approaching new highs for the year.
– Market participants are optimistic about Asian currencies.
– Tech stocks are seeing increased liquidity and interest.
– The European Central Bank has raised rates for the first time in three years.
Asian currency strengthKorean construction growthTech stock liquidityMonetary policy tightening
▸ Full transcript
Construction names are rising sharply, particularly those exposed to construction in the Gulf. Market participants are putting a significant amount of money to work this morning, pushing these Korean construction names much higher, which signals the durability of this rally. It's not just tech swinging around; people are pricing in next year's plays on whether this rally is over in terms of effects. It will be interesting to see how Asian policymakers respond to this, as they have been defending currencies this entire week, and now actual market participants are chasing Asian effects higher. The Chinese Yuan is almost at the new highs of the year, which will be something to watch during the Chinese session. Within tech, investors continue to pile into the most liquid and fundamentally sound names. There is potential that intraday, Kioshia will pass Toyota in market cap, which would be quite remarkable in this tech rally. Risk appetite is returning in Asia. We've been broadcasting now for about an hour and a half, and I think I barely talked about the European Central Bank, which hiked rates for the first time in almost three years. This is significant in terms of how policymakers are viewing inflation. Hats off to the ECB for staying on course.
Analysis

Korean construction stocks are experiencing a significant rally, driven by substantial investments from market participants, indicating strong demand in the Gulf region. Meanwhile, the Chinese Yuan is nearing yearly highs, suggesting a shift in market sentiment towards Asian currencies as policymakers respond to recent pressures.

17:30
PDT
Nikkei up 4%, Kospi up nearly 8%
NikkeiKospiSpaceXIranPresident TrumpHong KongChinaETFIQIPOWall StreetPRIVATEUSDCNHCL=FDXY
– Tech stocks rebounding on Wall Street gains
– Energy sector declines amid falling oil prices
– Market optimism linked to SpaceX IPO and Iran tensions easing
– Uncertainty remains regarding Tehran's response to U.S. claims
geopolitical risktech sector reboundenergy market dynamics
▸ Full transcript
Billion dollar industry. We'll show you what's happening in ETFs like no one else. ETF IQ Mondays on Bloomberg. Big gains for markets across Asia were seen in the Nikkei rising 4% and the Kospi gaining almost 8% right there. Of course, we have seen the rebound in tech stocks with the gains over on Wall Street, and we do have not only optimism around the SpaceX IPO and their trading debut on Friday, but also the easing of tensions around Iran, with President Trump now saying that he's ended the war with Tehran today. You can see most sectors are gaining ground for the Nikkei; tech is a leading sector, but we do have energy, for example, falling given the downside in oil prices hiding on the easing of tensions around Iran. Yeah, and we continue to work for more details on that, right? President Trump obviously sounding very optimistic. We don't have any indication of what Tehran has to say about this memorandum of understanding; the markets are kind of taking that with some degree of certainty and running with it. This is a picture as we look ahead to the start of trading across greater China in the next hour. Hong Kong futures, tech futures, that is up by about 0.8% of 1%. High-ex futures seeing that pop of 2.7%. And A50 China futures there are by a tenth of a percent there as well.
Analysis

Asian markets saw significant gains, with the Nikkei rising 4% and the Kospi gaining almost 8%, driven by optimism surrounding the SpaceX IPO and easing tensions with Iran. However, energy stocks fell due to declining oil prices, indicating a complex market reaction to geopolitical developments.

Smart money should note that while tech stocks are rebounding, the market's confidence in geopolitical resolutions may be fragile, especially given the lack of clarity from Tehran regarding the recent U.S. claims of peace. This divergence between tech optimism and energy sector weakness could signal underlying volatility in investor sentiment.

17:23
PDT
SpaceX's future ambitions may be hindered by reliance on critical minerals.
SpaceXElon MuskChinaBloombergDavid FicklingAINASAIPOTom MacWatch Bloomberg Tech EuropeBloomberg TelevisionEd LudlowPRIVATEUSDCNH
– China's dominance in critical mineral supply poses risks for SpaceX.
– Geopolitical tensions could impact supply chains for tech companies.
– Investors should monitor the evolving landscape of critical minerals.
– The tech sector's growth is increasingly tied to resource availability.
supply chain riskgeopolitical tensions
▸ Full transcript
For the end of human struggle. We see the endless funds fueling the AI hype. While others follow the noise, we follow the money. And from the road to the stars, Bloomberg brings you the latest stories from the people and companies pushing the tech sector to new frontiers and the politics that shape global tech markets. I'm Tom MacKenzie in London. Watch Bloomberg Tech Europe. New episode Friday only on Bloomberg Television. Bringing you up to the minute space news whenever and wherever it happens, I'm Ed Ludlow at NASA's Kennedy Space Center in Florida and this is Bloomberg. Well, let's get back to the SpaceX IPO, which is unusual and precedent-setting for so many reasons. But our Bloomberg opinion columnist David Fickling thinks that Elon Musk's ambitions for SpaceX may be difficult to achieve without vast supplies of critical minerals, and those needs could tie the company's future to China. David joins us now. So when you think of critical minerals, obviously, it's hard to avoid talking about China. Absolutely. And I think this is a crucial consideration for what SpaceX is doing. Obviously, the core of their business is these data center satellites. Certainly, that's the core of what they're pitching for their future business. And these, if you think about them, are essentially.
Analysis

The discussion highlights the challenges SpaceX faces in achieving its ambitious goals due to its reliance on critical minerals, particularly from China. This dependency could significantly impact the company's future operations and market positioning.

Investors should note that the geopolitical landscape surrounding critical minerals is becoming increasingly complex, which may affect supply chains and pricing. As SpaceX's ambitions grow, so does the risk associated with its reliance on these essential resources, potentially influencing its valuation and investment attractiveness.

17:19
PDT
U.S. public sentiment is turning against the ongoing war, affecting political dynamics.
Donald TrumpWoodside EnergyU.S.IranHong KongUnited StatesJill DeesCL=F
– High energy prices and inflation are critical issues for the current administration.
– Woodside Energy's stock is down 2.5%, reflecting broader market concerns.
– The administration's actions may be influenced by the upcoming midterm elections.
– Potential for volatility in energy markets as resolution efforts continue.
political riskenergy market volatility
▸ Full transcript
It is really, really difficult to ignore here, which has got to be playing into the calculus of the Trump administration and Republicans in the United States, that this war is growing even more unpopular with the American public. Energy prices are high, inflation is high, and there's a really critical midterm election happening in November, later this year. This is something that could potentially be incredibly politically damaging for the party currently in the executive office if there's not some kind of a perception of a resolution in the minds of the American people. So that's got to be something weighing on their minds at this point in terms of what a deal ultimately looks like and what they're ultimately able to reach; we'll have to see. It is also just worth pointing out that this is a conflict that Donald Trump said would last a matter of maybe five or six weeks back when this launched in February. It's now been four months, so it continues to sort of linger on here. We're going back and forth over whether or not there's a deal. Clearly, Donald Trump wants this to end. We'll see if he's able to portray that narrative of victory when it comes out of this. Hufflin, Bergmanaging editor, Jill Dees is there in Hong Kong. We have heard the president kind of talking about the fact that he doesn't really care about the midterms, but obviously his colleagues do. Perhaps we are starting to see that calculus come through. As you mentioned, so much of that is getting oil prices and pump prices down. We're seeing that reaction when it comes to energy stocks across the region. The likes of Woodside Energy here in Australia are down by two and a half percent. In fact, when it comes to Australia, this is one of the two declineers.
Analysis

The ongoing war is increasingly unpopular among the American public, which could politically damage the current administration if a resolution isn't perceived. Energy prices and inflation remain high, influencing market sentiment and energy stocks, particularly in Australia where Woodside Energy has seen a decline.

Smart money should note the potential political calculus influencing U.S. foreign policy, especially as midterm elections approach. The administration's focus on resolving the conflict may lead to volatility in energy markets, impacting stocks and commodities tied to oil prices.

17:17
PDT
Iran's agreement with the U.S. is not yet finalized.
IranUnited StatesPresident TrumpObamaMOUPresident Obama
– The proposed pact is described as conceptual.
– Market volatility may persist due to geopolitical uncertainties.
– Investors should be cautious about commodity exposure.
– Historical context of Iran deals may influence market sentiment.
geopolitical riskIran nuclear dealmarket volatility
▸ Full transcript
There's nothing that really indicates that something is completely set in stone. I'll read you this quote, Sherry, where he describes this pact as a "very strong Memorandum of Understanding" that is a little conceptual. So you already have a lot of questions about what exactly this represents and how firm it is. I do need to point out that Iran's semi-official news agency has said that the officials have not yet approved the text of any agreement with the United States. So we've got a lot of questions there. I mean, what that ultimately means? Have they agreed to something sort of verbally or in some kind of other means that just hasn't actually been written down yet? We'll have to see. But I do need to point out that unless you actually have something that does feel like a true peace pact signing, a lot of this, I guess, as the President of the United States just said, is a little conceptual. Jill, I guess the question is that, you know, prior to this, under President Obama, there was an Iran deal, right? So if we do have, of course, depending on what is actually in this MOU, what's actually been agreed upon, one wouldn't imagine there's a great deal of specifics when it comes to the nuclear issue. But is there an idea that we've basically gone back to the point where we were before this war started? I mean, certainly that's a big question there. Trump went into this war with a lot of, you know, really really big sort of like, you know, high...
Analysis

The recent developments regarding the U.S.-Iran agreement remain uncertain, with Iran's semi-official news agency indicating that officials have not yet approved the text of any agreement. This raises questions about the solidity of the proposed Memorandum of Understanding, which is described as conceptual rather than concrete.

Smart money should note that the lack of a definitive peace pact could lead to continued volatility in markets sensitive to geopolitical tensions, particularly in commodities. Investors should remain cautious as the situation evolves, especially given the historical context of previous agreements and their implications for nuclear negotiations.

17:10
PDT
Investors should stay diversified across sectors and geographies.
FOMCBOJIranAsiaElon MuskSpaceXAIUSIran WarFEDFUNDSDXY
– Upcoming monetary policy decisions may introduce market caution.
– Expectations of potential rate cuts next year could influence market sentiment.
– Geopolitical concerns, particularly around Iran, are impacting Asian currencies.
– Maintaining structural equity supports is crucial in the current environment.
diversification strategymonetary policygeopolitical risk
▸ Full transcript
But we continue to invest, I mean, advise our investors to stay diversified and not over-concentrate in tech and AI, even though that is looking like it is going to be the driver. But we really want investors to be geographically and also sector diversified. And how are you going to factor in the fact that next week we might be able to focus on more fundamentals with so many monetary policy decisions, including from the FOMC and the BOJ? Yeah, I think those are definitely cautions on the market. And like I said, as much as we have all this optimism in the market, we are shifting towards more tactical caution and just trying to retain the same structural equity supports. So, you know, we are not really expecting rates to move very much in the near future. Hopefully, we are even expecting maybe some cuts next year, but I think retaining and just staying cautious while staying diversified is probably one of the best suggestions for right now. Are there any big implications from the challenges that a lot of Asian currencies feel right now? Given the trajectory of the Fed, the US dollar, and of course all of the concerns around the Iran War more. Yeah, I think the concerns that you had, this is a great point. The concerns around the war have really, you know, have...
Analysis

Investors are advised to maintain diversification across sectors and geographies despite the optimism surrounding tech and AI, as upcoming monetary policy decisions from the FOMC and BOJ could introduce caution in the market. The sentiment remains cautious with expectations of potential rate cuts next year, highlighting the importance of strategic positioning amidst geopolitical concerns and currency challenges in Asia.

Smart money should note that while the tech sector may drive market performance, the emphasis on diversification suggests a potential overreliance on tech could pose risks. Additionally, the geopolitical landscape, particularly regarding the Iran situation, may impact Asian currencies and overall market stability, warranting close monitoring of these developments.

17:08
PDT
SpaceX IPO is highly anticipated with strong client interest.
Elon MuskSpaceXNASDAQSouth KoreaKorean wonBank of JapanKazuo UedaECBBrent crudeSamsung ElectronicsSK HynixPresident Trump
– Retail allocation for SpaceX shares is limited to 20%.
– Positive macroeconomic and geopolitical factors are enhancing market sentiment.
– Current market conditions may reduce uncertainties for tech and AI stocks.
– Investors are likely to see more opportunities in upcoming IPOs.
IPO excitementtech sector sentimentgeopolitical impact
▸ Full transcript
IPO obviously the great deal of exuberance it's being pulled off the way that Elon Musk has wanted it to be. Have you had a lot of interest from clients asking about this and wanting a piece of it from Asia? Yeah, absolutely. I mean this has been the talk all week. So we just have we can make limited comments regarding the SpaceX IPO, but you know I mean the information is how there's we were expecting a lot more allocation for retail shares but it's probably going to be 20%. So, I mean, with the clients are coming and really wanting a piece of the allocation, I mean, I think if you're invested early, you know, this is a, it's going to be a great win for you, but, you know, and if you're not in it tomorrow, I mean, there's going to be other opportunities, like you guys were just saying, this is just kind of the beginning, and lots of other opportunities probably to get invested in SpaceX and even possibly all the other IPOs coming up in the near future. You know, and Michael made a good point. It's obviously a good day in terms of the broader macroeconomic environment, the geopolitical headlines, helping sentiment. But given that this was seen as a bigger broader test of the fundamentals of the market in terms of sentiment and depth of liquidity, does that remove one of the uncertainties for the broader tech and AI rally going forward? Certainly, I mean, the truth is, it's just the market is very good, the fundamentals are good.
Analysis

The SpaceX IPO is generating significant interest, with clients eager for a piece of the allocation, although retail shares are expected to be limited to 20%. The broader macroeconomic environment and positive geopolitical headlines are bolstering market sentiment, suggesting a favorable outlook for tech and AI stocks moving forward.

Smart money should note that the current market conditions are seen as a test of liquidity and sentiment, which may alleviate uncertainties for the tech sector. The enthusiasm surrounding SpaceX could indicate a broader trend of renewed investor confidence in high-growth sectors, despite potential volatility ahead.

17:03
PDT
SpaceX's debut faces skepticism over governance issues.
Elon MuskSpaceXNASDAQIranU.S.
– Elon Musk's influence remains a double-edged sword.
– Pent-up demand from institutional investors could drive share prices up.
– NASDAQ's recent gains may positively impact SpaceX's trading debut.
– Geopolitical factors are influencing market sentiment.
corporate governancegeopolitical sentimenttech stock volatility
▸ Full transcript
It looks like a positive setup for the trading debut, but at the same time, there's skepticism around the business itself and Elon Musk's weight in this company. There's criticism from the short-selling crowd and related investors saying that the corporate governance is just too much in favor of Elon Musk. He controls all the voting power virtually. There are restrictions like the company can't be sued and things like that by shareholders. It's going to be showing how that plays out. But I think the most important thing to remember is that there are a lot of fans of Elon Musk. He's got people who are not just investors but real believers, not only in the business but in sort of the big dream too. Now space is still a pretty imagination-rich area, and Elon Musk is doing some pretty remarkable things and obviously has ambitions that go way beyond sort of the normal business plans. As far as when it starts trading, it'll be interesting because there's this pent-up demand; there are people that did not get to buy shares, including large institutional buyers who did not get to buy shares, and so that would tend to push up the share price. Also, Musk is perhaps coming on and SpaceX are coming on at a very lucky time in the sense that the NASDAQ composite was up 2.5% today, that's the best day in June, largely on the geopolitical issues involving Iran and the U.S. If that continues tomorrow, you always want to go out on a high note.
Analysis

SpaceX's trading debut is set against a backdrop of skepticism regarding corporate governance, particularly Elon Musk's control over voting power. Despite criticism, Musk's strong fan base and the pent-up demand for shares could drive prices higher, especially with the NASDAQ showing significant gains due to geopolitical factors.

Smart money should note that the timing of SpaceX's entry into the market coincides with a favorable sentiment shift in tech stocks, driven by easing geopolitical tensions. This could create a unique opportunity for institutional investors who missed initial allocations, potentially leading to a price surge as demand outstrips supply.

17:01
PDT
South Korean tech stocks rebounded significantly.
South KoreaSamsung ElectronicsSK HynixPresident TrumpIranBrent crudePhiladelphia Semiconductor IndexSKMOUThe Philadelphia Semiconductor IndexCL=F
– The Philadelphia Semiconductor Index gained 8%.
– Geopolitical optimism is influencing market sentiment.
– Oil prices have dropped to a two-month low.
– Foreign selling continues to pressure the Korean won.
geopolitical sentimenttech sector recoveryforeign investment
▸ Full transcript
The 264 level for the 10-year yield. Take a look at how South Korea is coming online. Of course, there's a tech story again. The Philadelphia Semiconductor Index in the overnight session gained about 8 percent, rebounding. So, that rotation out of tech is sort of easing, and you can see those gains when it came to Samsung Electronics gaining 9 percent, SK Hynix also 8 percent. So, not surprising you have the cost-be gaining ground. Even the Korean won is seeing a little bit of upside towards that 1500 level. Of course, it's been really about foreign selling. It's been about the pressure on the Korean won and authorities having to really try to stabilize the markets with more and more warnings, Heidi, when it comes to South Korea. Yeah, and that geopolitical front is really looking to ease in terms of at least sentiment. We still don't have a great deal of detail from President Trump other than just the optimism that we'll see a deal soon, that he's ended the war, that the U.S. has gotten everything that it's wanted. So we'll be watching to see what this MOU actually contains in terms of some of the really difficult issues of nuclear. Have they actually been addressed? We know that Iran hasn't yet agreed to our knowledge to this MOU yet. So very much a watch and wait, but lots of optimism and the markets are really taking that and running with it. We've seen that drop for oil to a two-month low there and Brent crude coming online and seeing that drop of about one and a half percent at this point. Off those session lows already though, it was down earlier by close to 2%.
Analysis

The South Korean market is showing signs of recovery with the Philadelphia Semiconductor Index rebounding by about 8%, leading to gains in major tech stocks like Samsung Electronics and SK Hynix. This uptick comes amid easing geopolitical tensions and optimism surrounding a potential deal from President Trump, despite uncertainties regarding the specifics of the MOU with Iran.

Smart money should note the correlation between geopolitical sentiment and market performance, particularly in tech stocks, as foreign selling pressures the Korean won. The recent drop in oil prices to a two-month low may also indicate a shift in market dynamics that could influence broader economic conditions in the region.

16:59
PDT
Asian markets may see upside after a volatile week.
SpaceXBank of JapanKazuo UedaIndiaIndonesiaAsahi GroupMizunoAsicsSouth KoreaJapanBloombergAIPRIVATECL=F
– Falling oil prices and SpaceX IPO boost sentiment.
– Caution prevails ahead of central bank decisions.
– Yen remains resilient despite negative sentiment.
– Emerging market currencies face localized risks.
market volatilityemerging marketsoil pricescentral bank policy
▸ Full transcript
Welcome to the world of decentralized finance. Bloomberg is covering all things crypto. The people. The transactions. And the technology. Bloomberg Crypto. Tuesdays only on Bloomberg. Bringing you up to the minute geopolitical news whenever and wherever it happens. I'm Jennifer Zappasadja in the Lesotho Highland and this is Bloomberg. This is the Asia trade war counting down to Asia's major market opens in what could be a day of upside here across Asia. Of course, we saw the gains in the overnight session. There's been a lot of oil prices falling, renewed optimism over Iran. Of course, the euphoria around SpaceX. But I got to say, Heidi, happy Friday. It's been quite a week of the roller coaster ride in the markets and us trying to bring you the latest in this new cycle. The highest of highs and the lowest of lows. And look, at least we're ending on a high point right even though I'm pretty sure we're going to see more volatility in this AI trade but it looks like the exuberance cherry of getting SpaceX done as unusual as this IPO has been has really cleared the way for a bit more of a bounce here in Asia.
Analysis

Asian markets are poised for potential upside following a volatile week, with optimism stemming from falling oil prices and positive sentiment around SpaceX's IPO. However, caution remains as investors are wary of upcoming central bank decisions and geopolitical uncertainties, particularly regarding the Japanese yen and the Bank of Japan's policy direction.

Smart money should note the divergence in currency performance, particularly the yen's resilience despite negative sentiment and the looming BOJ decision. Additionally, the focus on emerging market currencies like the Indian rupee and Indonesian rupiah highlights the potential for localized risks that could impact broader market sentiment.

16:54
PDT
to do with that. And at the same time though, we also have data saying that it's kind of a non-event for Americans, more than half of US adu…
PRIVATE
▸ Full transcript
to do with that. And at the same time though, we also have data saying that it's kind of a non-event for Americans, more than half of US adults saying they're unlikely to watch any of the tournament games on TV at home. Only 13% saying that they're certain to watch, despite it being in most mostly their time zone. You will want to get more obviously on the World Cup coverage on Bloomberg. The second season of Sports City has just premiered, diving into the business behind the most watched sports showdown on Earth. You can catch the second episode on June 18th on Bloomberg.com. And Heidi of course we're headed towards the market opens here across Japan, South Korea and Australia as well. It could be an update. You can see the futures market right there pointing to some upside, especially with the cost being the 7.9 percent in the future space. Of course we are still headed potentially for a week of losses. The first in South Korea given the immense volatility that we've seen in that market, of course foreign selling is still pressuring the Korean won, pressuring the stock markets as well. And we are headed towards perhaps some volatility next week as well here in Japan given that we do have that Bank of Japan policy decision and the governor, Kazuo Ueda, is expected to miss it. We'll also be contending perhaps to some of the implications of the ECB's first hike in almost three years of monetary policy also in focus. The market opens in Sydney, Southland, Tokyo.
16:52
PDT
Mexico wins first World Cup match.
MexicoSouth AfricaJapanAsahi GroupMizunoJapan Football AssociationEYFIFAWorld CupUnited StatesWill Samurai Blue
– Japan's consumer-facing companies may benefit from increased spending.
– Asahi Group and Mizuno are key players to watch.
– Japan's performance could influence local market sentiment.
– Consumer behavior linked to sporting events presents investment opportunities.
consumer spendingsports events impact
▸ Full transcript
Economic and social prosperity through environmental responsibility. With EY Protonon and EY's full spectrum of services, we're reimagining the enterprise to shape the future with confidence. The biggest sporting show on earth is officially underway, with Mexico winning the first of 104 matches at the FIFA World Cup. The co-hosts defeated South Africa 2-0 in a game where three players were sent off. The expanded 48-team tournament will be played across the next 39 days in Mexico, Canada, and the United States. And of course, here in Japan, we're pretty much excited as well, especially given that there are high hopes with Japan entering as Asia's top-ranked team. Will Samurai Blue be able to reach the quarter-finals, especially since four years ago in Qatar, Japan did win some surprise victories over Germany and Spain and then managed to reach the round of 16? You can see, of course, the excitement being translated during the course of the World Cup with some consumer-facing companies that we'll be watching. Because, right, how do you watch these games? You have to go out, perhaps have a glass of beer, right? So we'll be watching the likes of Asahi Group, Keating, their partners with the Japan Football Association. They could benefit. We'll be watching the likes of Mizuno and Asics, companies tied to.
Analysis

The FIFA World Cup has commenced with Mexico defeating South Africa 2-0, generating excitement around consumer-facing companies in Japan, particularly those linked to the event. Asahi Group and Mizuno are among the firms that could see increased consumer spending as fans engage with the tournament, highlighting the potential economic boost from the event.

Smart money should note the correlation between major sporting events and consumer behavior, particularly in sectors like beverages and sports apparel. The anticipation surrounding Japan's performance, as Asia's top-ranked team, may further drive local consumer sentiment and spending, creating opportunities for targeted investments in these sectors.

16:48
PDT
Dollar-yen holds steady at 160.
Bank of JapanGovernor WedaCFTCdollaryeneuroBOJThe AussieDXY
– Euro-dollar trades at 115.
– Caution prevails among investors ahead of the weekend.
– Bank of Japan's policy uncertainty affects yen sentiment.
– CFTC data on hedge fund positioning is forthcoming.
currency riskBOJ policy uncertaintyenergy crisis
▸ Full transcript
We're seeing the dollar-yen still at 160 and euro-dollar at 115. However, people are taking some profits and being cautious going into the weekend because anything can happen over the next 12 to 72 hours. The Aussie is barely clinging onto the 70 handle as well, and it's a risk-on currency. You would think that with all the positive headlines we've seen so far, the dollar would be more sold off, but it's not, signaling caution ahead. You mentioned the Japanese yen briefly, but with all the uncertainty around the BOJ policy decision next week and Governor Weda hospitalized, how are investors positioning for this? In less than 12 hours, we'll get some CFTC positioning data that will give investors another clue, particularly regarding hedge funds and leveraged funds that are short-selling the yen. We'll have fresh data on that soon. In the meantime, investors and strategists I speak with daily find it incredibly hard to find any bullish sentiment on the yen, despite a BOJ hike being pretty much sealed by the market as a done deal next week. The energy crisis remains a significant concern, as Japan is a major energy importer.
Analysis

The dollar-yen remains steady at 160, while the euro-dollar is at 115, indicating cautious profit-taking ahead of the weekend. Investors are wary of potential volatility, especially with uncertainty surrounding the Bank of Japan's policy decision next week and Governor Weda's hospitalization.

Despite positive headlines, the dollar is not experiencing significant sell-off, signaling a risk-averse sentiment among traders. The upcoming CFTC positioning data will provide insights into hedge fund strategies, particularly regarding short positions on the yen, amidst ongoing energy crisis concerns in Japan.

16:45
PDT
Trump's consistent messaging is stabilizing market sentiment.
TrumpIranECBChristine LagardeDollarYenEuroUSAnthony StevensDollar YenCL=FDXY
– Oil prices remain capped below $90, aiding asset pricing.
– The ECB's rate hike indicates a shift in monetary policy response.
– Inflation risks are spreading beyond energy markets.
– Geopolitical tensions are influencing broader market dynamics.
geopolitical riskcentral bank policyinflation concerns
▸ Full transcript
His anger at Iran's escalation. We have a consistency of messaging that Trump wants a deal. He wants oil prices lower. He wants markets higher. He wants inflation under control. The consistency of messaging in what is sometimes a volatile personal character is what the market really likes. And the fact that oil cannot get above 90 in terms of input cost into the rest of the trade allows market participants a more calm pricing of assets going forward. So it's less whether oil goes down to 80 or goes up to 90. It's more that the direction of travel seems to be controlling the crisis from the US side of things and not escalating it. Mark, it's a reporter, Anthony Stevens there. As we continue to monitor the state of affairs as we get about 15 minutes away from the start of cash trading here in the region. But take a look at what we're watching when it comes to currencies as well. Dollar Yen still holding at that 160, just above that 160 level, the dollar index not doing very much at the moment. The euro taking a little bit of a step back but holding onto most of those gains as we had the ECB hiking. Christine Lagarde warning that the inflation risk is spreading. That first hike for the first time in more than three years there, policymakers there essentially considering that they cannot wait to see that war come to an end. The inflation being triggered by the Iran war and the energy crisis widening now just beyond just the energy issue now. This is the first policy reaction by me.
Analysis

The market is responding positively to the consistency of messaging from Trump regarding oil prices and inflation control, which is helping to stabilize asset pricing. The inability of oil prices to rise above $90 is contributing to a calmer market environment, allowing participants to price assets more effectively moving forward.

Smart money should note that the geopolitical tensions, particularly the Iran war, are influencing broader market dynamics beyond just energy prices. The ECB's recent rate hike and Lagarde's warnings about inflation risks suggest that central banks are increasingly reactive to external crises, which could lead to more volatility in currency markets.

16:41
PDT
Philadelphia Semiconductor Index up nearly 8%.
SK HynixSpaceXPhiladelphia Semiconductor IndexIranSKFXUSSouth KoreaBloomberg MarketsAnthony StevensCL=FGC=FPRIVATE
– SK Hynix leads tech gains with a 7% increase.
– Easing Iran tensions alleviates macro risk.
– Cross-asset reactions indicate a shift in market sentiment.
– SpaceX IPO excitement contributes to positive market setup.
tech sector reboundgeopolitical easingcross-asset reaction
▸ Full transcript
Take a look at how we're setting up for the trading day in South Korea. Of course, we had in the overnight session a rebound in tech stocks, with the Philadelphia Semiconductor Index gaining almost 8 percent. You can see the setup right there, with SK Hynix leading the pack, gaining 7 percent in the future space. Joining us now is Bloomberg Markets reporter Anthony Stevens. So, looking pretty decent for the open given not only, of course, a tech story but also the easing of tensions in the Iran war and the euphoria around SpaceX? We had a nice combination of several events back to back in the back end of the S&P session that really set up Asia quite well. You obviously had the Iran headlines alleviate a lot of macro risk, and I have to stress the cross-asset nature of the reaction to the latest headlines is materially different from before. Not only did we have the tech sector rally very hard, which it has done for many days, but also oil dropped very sharply, gold and Bitcoin rallied very hard, and Asian FX NDFs traded in the US rallied very.
Analysis

The tech sector is experiencing a significant rebound, with the Philadelphia Semiconductor Index gaining almost 8%, led by SK Hynix's 7% increase. This positive momentum is bolstered by easing tensions in the Iran conflict and the excitement surrounding the SpaceX IPO, which has created a favorable environment for Asian markets.

Smart money should note the cross-asset reaction to the latest headlines, which is markedly different from previous responses. The simultaneous rally in tech stocks, alongside drops in oil and increases in gold and Bitcoin, suggests a shift in market sentiment that could influence future trading strategies.

16:37
PDT
SpaceX's IPO is set to be the largest ever, valued at $1.77 trillion.
SpaceXElon MuskNVIDIAAlphabetMeta PlatformsCitigroupUniversity of FloridaJay RiddickMarvellNTT Global Data CentersShantanu NarayanPresident TrumpNVDAGOOGLMETA
– Retail demand for SpaceX shares is significantly outpacing supply.
– Concerns exist over Elon Musk's control and the dual-class share structure.
– High price-to-sales ratio raises historical concerns about meeting investor expectations.
– Potential precedent for future tech IPOs with similar governance structures.
IPO excitementtech valuation concernsdual-class share structure
▸ Full transcript
And for the successful companies, they're able to earn enormous profit margins. NVIDIA has an after-tax profit margin of over 60%. That just does not happen in the restaurant industry. But there have been some tech firms that have been able to pull it off. Maybe SpaceX will be the next one. There's a lot that's unusual about this, right? We've talked about some of it already. Elon Musk, the limitations, the potential dilution of shareholder protections, limitations of shareholder rights, he's retaining around 80% of the voting rights. We know so much of the company is really down to him as a person. In addition to some of the other things that have happened, the expedited inclusion into indexes, for example. Do some of these factors worry you? Do you think it sets a precedent for some of the other big mega tech IPOs that we're expecting? Yes. Some of these things do worry me. But with SpaceX and, you know, for that matter, Alphabet, Meta Platforms, various other tech companies that have a dual-class share structure where founders have voting control. What's also important with these companies is that they have a lot of employees with equity-linked compensation.
Analysis

SpaceX's upcoming IPO is generating significant excitement, with retail investors placing over $100 billion in orders, far exceeding the 20% allocation for them. However, concerns arise regarding the company's high valuation, driven by Elon Musk's control and the dual-class share structure, which may set a precedent for future tech IPOs.

The high price-to-sales ratio of SpaceX, over 90, raises red flags as historically, companies with such ratios often fail to meet expectations. Investors are betting on the potential of SpaceX's unique business model, but the reliance on Musk's vision and the associated risks could lead to volatility in the stock post-IPO.

16:35
PDT
SpaceX's IPO is priced at $135 per share, valuing the company at $1.77 trillion.
SpaceXJay RiddickJim ChanoffPresident TrumpAdobeMarvellNTT Global Data CentersCitigroupIPO
– Retail investors have placed over $100 billion in orders for the IPO.
– Critics argue the valuation is based on speculative future markets rather than current revenues.
– Historical data suggests high price-to-sales ratios often lead to unmet expectations.
– The demand for SpaceX shares indicates strong investor interest despite financial concerns.
IPO speculationhigh valuation risks
▸ Full transcript
than that. So here I think a lot of the demand is actually true demand rather than fake demand. It's interesting, Jay. I wanted to get back to the point of how you justify evaluation for such a unique business proposition, unique governance for this company, right? Because we heard from Jim Chanoff, obviously a well-known short seller, and he's been quite critical. He's calling this a hopes and dreams IPO, a $75 billion IPO for evaluation close to $2 trillion for a company with revenues of $19 billion and negative free cash flow. He goes on to say, you know, if you're talking about total addressable market, it's essentially whatever stories you want. Colonies on Mars, factories on the moon, data centers in space. You can use all of that to justify the valuation. Do you agree with that and is that the hope and the dream that investors are buying into at this point? Well, historically, companies that have gone public at very high price-to-sales ratios, as this company is, a price-to-sales ratio of over 90, on average, they have failed to live up to expectations. Some have met those expectations, and investors have done very well. But on average, it doesn't happen. Lots of things have to go right. But why are private market and public market investors willing to give the company such a high valuation? Or for that...
Analysis

SpaceX's IPO is generating significant demand, with retail investors placing over $100 billion in orders, far exceeding the 20% allocation for retail buyers. Critics, however, label it a 'hopes and dreams IPO,' questioning the justification of its nearly $2 trillion valuation against revenues of only $19 billion and negative free cash flow.

Investors appear to be betting on the long-term potential of SpaceX's unique business model, despite historical trends showing that companies with high price-to-sales ratios often fail to meet lofty expectations. The enthusiasm surrounding the IPO reflects a broader trend where speculative investments are driven by narratives of future possibilities rather than current financial performance.

16:30
PDT
SpaceX IPO priced at $135 per share, valuing the company at $1.77 trillion.
President TrumpSpaceXSaudi AramcoS&PECBUSIPOCL=FDXY
– Retail investors placed over $100 billion in orders for the IPO.
– Oil prices are falling to a two-month low.
– Yields are also declining, indicating a shift in risk appetite.
– Exuberance around the SpaceX IPO is influencing market sentiment.
IPO excitementgeopolitical impactmarket volatility
▸ Full transcript
Just like the only direction at this point, safe to say, is high. If you take a look at the big reaction when it comes to what we heard from President Trump sounding very confident that the war with Iran is done, that we'll be getting a deal being signed imminently, that in fact the US, from his perspective, got everything that it wanted. It's just adding to the overall exuberance with regard to that SpaceX IPO. But take a look at how we're setting up. Given that we continue to see those declines, oil falling to a two-month low. We're seeing yields falling as well. We are seeing those risk assets really bouncing, chip stocks in particular continuing to see that defense player overnight. We'll see that play out in Asia as well. The dollar not doing very much, but S&P futures are up by just about a tenth of 1%. We also had the ECB not really delivering much of a surprise. We saw European tech also seeing that bounce as well. So all of the sherry setting up very nicely for Asia. But it's just the matter of that little IPO that we've been talking about too. The exuberance around SpaceX. Right. It's really to do with that IPO, the largest ever. Really double what we saw on record, Saudi Aramco back in 2019. Now this price is $135 per share, valuing the company at $1.77 trillion. Now we're hearing that retail investors have made it more than $100 billion of orders, so demand far exceeding the sort of 20% allocation reserved for retail buyers. So large numbers of Musk followers likely receive little to no stock. We will be.
Analysis

President Trump expressed confidence that the war with Iran is concluding, which is contributing to the exuberance surrounding the SpaceX IPO. The IPO is set at $135 per share, valuing SpaceX at $1.77 trillion, with retail investors placing over $100 billion in orders, indicating strong demand that far exceeds the allocation for retail buyers.

Smart money should note the significant retail interest in SpaceX, which may lead to volatility as many investors may receive little to no stock. Additionally, the falling oil prices and yields suggest a shift in risk appetite, which could impact broader market dynamics as investors reposition ahead of the IPO.

16:26
PDT
SpaceX IPO debut expected to create market excitement.
SpaceXAdobeDanShantanu NarayanMarvellNTT Global Data CentersCitigroupIranPresident TrumpSouth KoreaJapanIPOPRIVATEDXY
– Adobe faces leadership challenges with CFO departure.
– Falling oil prices may ease inflationary pressures.
– NTT Global Data Centers seeking over $1 billion in fresh capital.
– Market futures indicate positive sentiment following Wall Street gains.
IPO excitementleadership changesgeopolitical riskscapital raising
▸ Full transcript
We do have more on SpaceX in just a few minutes. We'll be joined by the man known as Mr. IPO. Here, why the University of Florida's Jay Riddick says the company needs to get a lot of things right to justify that high valuation. In the meantime, let's get you caught up to date with some of the corporate headlines that we're following. Adobe says its chief financial officer, Dan, is departing, leaving the company without a top tier of leadership after the CEO, Shantanu Narayan, announced in March that he would step aside. Great maker Marvell says Dern will be joining its staff, the announcement overshadowing quarterly results and an outlook for the current period that surpassed analyst expectations. Bloomberg's been told that NTT Global Data Centers is seeking at least a billion dollars in fresh capital to fund projects in the US. Sources say the Japanese firm is working with Citigroup to raise the funds by selling stakes in a unit developing 34 projects. A formal marketing process is set to begin in the coming weeks, Sherry. And how do you take a look at how we're setting up for the market opens across Asia? Futures are pointing to some upside after we saw those gains on Wall Street. Of course, we had some optimism around the Iran war. We're getting more updates from President Trump saying that the war in Iran ends today. Of course, we'll see if we actually get that deal. In the meantime, oil prices are falling and there's euphoria around the SpaceX IPO. A trading debut, of course, is on Friday. When it comes to the South Korean market, the Japanese market will start a session of gains.
Analysis

SpaceX's upcoming IPO is generating significant euphoria, with expectations of a trading debut on Friday. Meanwhile, Adobe's CFO departure raises concerns about leadership stability following the CEO's earlier announcement to step down.

Investors should note the potential volatility surrounding SpaceX's valuation and the implications of leadership changes at Adobe. Additionally, the optimism around the Iran situation and falling oil prices could influence broader market sentiment and trading strategies.

16:24
PDT
SpaceX refinanced $20 billion of debt at 4.6% coupon.
SpaceXElon MuskIG
– Company has over $80 billion in cash and no net debt.
– Market cap nearing $2 trillion indicates strong valuation.
– Potential to raise additional debt signals confidence in growth.
– Investment-grade rating enhances borrowing capacity.
debt refinancinginvestment-grade ratingcapital markets
▸ Full transcript
Shipping of 453. So, you know, it's definitely an IG rating because when you look at $20 billion of debt that they just priced in the 460, rising star is a term that we use when a non-IG or high yield issuer and they weren't rated non-IG by the rating agencies who were non-rated but they had 10, 11, 12% coupons that are now a 4.6% coupon. So they reissued, as you said, 20 billion to refinance the 17.5 billion outstanding. And when you think about a market cap of 1.77 trillion, or call it rounded up end of trading day, tomorrow say 2 trillion and only $20 billion of debt. That's only 1% of the entire enterprise value is in debt. In fact, with all the cash that they have, which will be an excess of $80 billion of cash, they have no net debt. So it's clearly an IG rated company as we stand today. No net debt now. As the markets view it. I have to ask Bruce, you know, I mean you're one of the most well traveled, well connected guys in the credit industry. What are you hearing about their plans to raise further debt? Well, certainly they'll have capital needs and they'll use the debt markets to tap into those capital needs as companies, you know, obviously do that. And so for SpaceX to have $30 billion or $50 billion of debt is completely within the realm of a strong triple B credit. And a $2 trillion.
Analysis

SpaceX has successfully refinanced $20 billion of debt at a significantly lower coupon rate of 4.6%, indicating a strong investment-grade rating. With a market cap approaching $2 trillion and over $80 billion in cash, the company has effectively no net debt, positioning it favorably for future capital needs.

Smart money should note that SpaceX's ability to tap into debt markets for additional capital, potentially raising $30 billion to $50 billion, reflects its strong credit profile. This financial maneuvering not only enhances its operational flexibility but also signals confidence in its growth trajectory amidst a competitive landscape.

16:21
PDT
SpaceX's valuation is heavily influenced by Elon Musk's leadership.
SpaceXElon MuskAICEOTSLADXY
– The investment landscape is shifting towards technology-driven opportunities.
– Musk's control raises concerns for traditional shareholder governance.
– The perception of SpaceX has evolved significantly over the last decade.
– Investors are increasingly focused on the intersection of technology and finance.
technology investmentMusk influencemarket volatility
▸ Full transcript
We're in technology for good in our society. Some see heroes. Others only see egos. We see the era of billionaire athletes, a fad to some, the future of money to others. We see crypto's trillion-dollar swings, the end of jobs, or the end of human struggle. We see the endless funds fueling the AI hype. While others follow the noise, we follow the money. SpaceX is the biggest rising star of all time. Anyone that's owning SpaceX is buying it for the Musk factor. Many that bet against Tesla and Musk going back a decade ago were proven historically wrong. Elon Musk has appointed himself CEO for life. He has all the voting control. He has basically built a moat with alligators around himself, and that's not good for shareholders. This feels like a milestone moment. This was an investment thesis that was unthinkable a decade ago for most investors. And I think now...
Analysis

SpaceX is emerging as a significant investment opportunity, driven by the influence of Elon Musk, who maintains complete control over the company. This marks a pivotal moment in investment thinking, as the perception of SpaceX has shifted dramatically over the past decade.

Investors should note the potential risks associated with Musk's control, which could impact shareholder interests. The current enthusiasm around SpaceX reflects broader trends in technology and finance, particularly in the context of cryptocurrency and AI investments.

16:17
PDT
Potential easing of U.S.-Iran tensions could impact oil markets.
TrumpIranBarack ObamaRepublicansCL=F
– Market optimism is reflected in stock rebounds.
– Key sticking points remain in negotiations.
– Republican pressure may influence the terms of any agreement.
– Rising fuel prices could indicate inflationary pressures.
geopolitical riskoil market dynamicsinflationary pressures
▸ Full transcript
While something that Trump has been a little reticent to agree on. But then there's something that Iran has been reticent to agree on as well. And that's the third point, which is unblocking the Strait of Hormuz, allowing that to free flow again, which really is kind of the catalyst for both oil as well as a whole bunch of other things, sort of a market focus. I mean, we're not that far away from Iran saying that it closed the Strait of Hormuz entirely. That was earlier this week. That's kind of where we are here. Those are the big sort of sticking points there. I think in a broader frame, you're talking about some sticking points in terms of whatever Trump agrees is going to be compared to the Iran nuclear deal that Barack Obama signed that Trump actually rejected his own way out of ultimately, but had long criticized. So the terms of this are going to be compared, whatever this happens to be, whenever we see text of it or understand what's in this understanding. So that's going to be one of those things. You have seen some pressure from Republicans aligned with the president who have not wanted him to be soft on whatever an agreement might be. So that's going to be one part of pressure. And then the other side is candidly economic and inflationary pressure you've seen an increase in retail gasoline prices, diesel prices, and knock-on effects that go through the economy there you've seen.
Analysis

Tensions between the U.S. and Iran are easing, with potential implications for oil markets as discussions around unblocking the Strait of Hormuz continue. The market is reacting positively to the prospect of a deal, but key sticking points remain, particularly regarding the terms compared to the previous Iran nuclear deal.

Smart money should note that while optimism is driving stock rebounds, the actual agreement's terms will be scrutinized, especially under the pressure from Republicans against any perceived softness. Additionally, rising retail gasoline and diesel prices could signal broader inflationary pressures that may impact consumer spending and economic growth.

16:15
PDT
U.S. markets are reacting positively to potential easing of tensions with Iran.
IranU.S.TrumpCL=F
– Iran has not yet confirmed acceptance of the proposed deal.
– Market sentiment is currently optimistic but could shift quickly.
– Investors should be wary of volatility as the situation evolves.
– The geopolitical landscape remains uncertain despite positive market movements.
geopolitical riskmarket sentiment
▸ Full transcript
A serious escalation of military strikes against Iran is not going to happen, the president said. Directionally, you're talking about this going sort of the other way. Trump has wavered back and forth between talking up the prospects of a deal literally for weeks to months versus threatening Iran with a much tougher military response. So we're back onto the idea of a potential deal. It is important, and you noted this, but it's really important to note that Iran has not yet said we agree, we accept. It also has not said we reject. So we're still waiting for the Iranian side to say whether or not they understand that this memorandum is an understanding. That is going to be a critical next step. That's something that we're watching for very, very closely. But in the meantime, you are seeing moves in the market toward the directionality of a deal oil down significantly. You're seeing stocks rebounding and all of that kind of is in this directional setting towards an easing of tensions between the U.S. and Iran. Certainly, there's a lot more to go here, but that's kind of the direction that we're looking at. Yeah, I mean markets have been pricing in a peace optimism for the longest time right but when it comes to the actual sticking points remind us what.
Analysis

The U.S. is shifting towards a potential deal with Iran, which has led to a rebound in stocks as market sentiment reflects optimism about easing tensions. However, Iran has yet to confirm its acceptance of the proposed memorandum, leaving uncertainty in the air.

Smart money should note that while markets are pricing in peace optimism, the lack of a definitive response from Iran could lead to volatility. Investors should remain cautious as the situation develops, particularly given the historical back-and-forth nature of U.S.-Iran relations.

16:08
PDT
SpaceX's IPO is expected to influence market sentiment significantly.
SpaceXElon MuskS&PETFsAIBloomberg
– Retail investor interest may drive volatility in SpaceX's stock price.
– Governance issues related to Elon Musk could impact investor confidence.
– The inclusion of SpaceX in ETFs is complicated by its low market float.
– Future mega IPOs may be affected by SpaceX's trading performance.
IPO dynamicsretail investor behaviorgovernance challengesmarket sentiment
▸ Full transcript
Get more realistic at least for the short term. David, we might not know how to really monetize a colony on Mars, but when it comes to ETFs and what they're doing around SpaceX, we're already feeling the repercussions in the markets. Absolutely. And I think, you know, we saw some speculation that the S&P committee would also move to accelerate including SpaceX; that didn't happen. And it's difficult, right? I mean, I think there's one side that would say this is one of the largest companies, you know, by market cap. It should be in some of these large ETFs. The other side would say, you know, market float is very low. There's a reason why you have some of these seasoning rules, the idea that you need some price discovery period before trying to put it into an index, particularly at a fairly decent size. So, you know, the fact that the indexes have been moving to accommodate some of these larger IPOs that are coming, including SpaceX, you know, it's definitely going to cause, I think, some newfound challenges for the market. Michael, we've spoken a little bit about some of the governance challenges, obviously, the idiosyncratic features of Elon Musk's leadership, but at the same time, obviously, his retail fan base, fervent as they are, is a big part of the success story too, right? How much pressure is there?
Analysis

SpaceX's upcoming trading debut is set to significantly impact market sentiment, particularly within the AI sector, as it is anticipated to be a major liquidity event. The challenges surrounding its inclusion in major ETFs highlight the complexities of market float and price discovery, which could lead to volatility in the short term.

Smart money should note that the retail investor enthusiasm surrounding SpaceX may create upward pressure on its stock price, despite governance concerns related to Elon Musk's leadership. The interplay between retail demand and institutional caution could shape the trajectory of future mega IPOs in the tech sector.

16:06
PDT
SpaceX's trading debut expected to create volatility.
SpaceXElon MuskNasdaq 100IranAIETFsETFIPOAnd Michael
– Retail investors likely to drive demand ahead of index inclusion.
– AI trade sentiment may improve with easing Iran tensions.
– Concerns about governance and short selling persist.
– Market sentiment hinges on SpaceX's initial performance.
IPO volatilityAI market sentiment
▸ Full transcript
I think that's a great point. And 15 days after it starts trading, we're going to see it likely enter into the Nasdaq 100 index. So 15 days from Friday, we're going to see a very large in the order of multiple billions market close on order for this ETF, for this stock. So I think price discovery is going to be very difficult during that period. I think as Michael alluded to, you're likely going to see a lot of retail investors trying to get exposure ahead of that. We saw even in advance of the IPO, any ETFs with some sort of private exposure to SpaceX saw a lot of inflows. So I think that's gonna be, it's gonna be likely a very volatile period, but I think for markets the biggest test is what it does for market sentiment for this AI trade that has been lagging, but certainly has been given a shot in the arm by the move towards potentially some easing of these Iran tensions. And so we see that in terms of the cost of the futures this morning. So lots to look out for for sure. And Michael of course, how we're setting up for potential other mega IPOs also depends on how SpaceX does after its trading debut, right? But already we've seen so many different concerns about just what this empire looks like and perhaps even questions about governance and Elon Musk's weight in this company. The short sellers are already sharpening their knives, whether they actually go out and start buying up sh-
Analysis

SpaceX is set to enter the Nasdaq 100 index 15 days after its trading debut, which could lead to significant market volatility as retail investors seek exposure. The upcoming IPO is expected to influence market sentiment, particularly for the lagging AI trade, amid easing tensions in Iran.

The anticipated inflows into ETFs with private exposure to SpaceX suggest strong retail interest, but the potential for price discovery challenges raises concerns. Smart money should monitor how SpaceX's performance impacts investor confidence in upcoming mega IPOs and the broader AI sector.

16:04
PDT
SpaceX's IPO is a key market sentiment driver.
SpaceXOpenAIAnthropicAIIPO
– Retail investor interest may lead to volatility.
– AI focus could redefine tech IPO dynamics.
– Upcoming IPOs from OpenAI and Anthropic are on the horizon.
– Demand dynamics will be crucial for SpaceX's first-day performance.
AI investmentIPO market dynamics
▸ Full transcript
Moving forward, as we kind of clear this sort of liquidity moment, what does this do to market sentiment? Obviously, the AI trade has been so central to the Asian equity rally, so I think that's really what SpaceX's biggest impact on markets moving forward will be. That is a big question, isn't it? Because this is not just a regular or even a regular mega IPO. This is such a sentiment-setting, liquidity-setting event for these markets. I do wonder, do we have an idea or a gauge at how it might play out, given that this is really kind of just the first cap of the rank? We've got a number of other tech AI mega IPOs and fundraising efforts going on. If I can answer that, of course, OpenAI is lined up as well as Anthropic to follow SpaceX at some point. What'll be interesting to see is because SpaceX's play is so much about AI now, as well as rocket launching and satellite communications, that the data centers and space theme are going to play out importantly, I think. We'll see how much investors really believe in that in the long term. I think one of the things to mention too in terms of demand is, obviously, is it going to pop or drop on its first day? All that oversubscribed demand, especially perhaps including those retail investors, this is perhaps the best-known company on the planet right now. And those retail investors who were not.
Analysis

The upcoming SpaceX IPO is poised to significantly influence market sentiment, particularly within the AI sector, as it sets the stage for future tech mega IPOs. Investors are keenly watching how the demand for SpaceX shares, especially from retail investors, will impact its initial trading performance and the broader market dynamics.

Smart money should note that SpaceX's focus on AI, alongside its traditional rocket launching and satellite communications, could redefine investor confidence in tech IPOs. The oversubscription of shares indicates strong retail interest, which may lead to volatility in the stock's debut and subsequent tech IPOs, particularly those related to AI like OpenAI and Anthropic.

15:59
PDT
Supreme Court ruling on tariffs may impact trade policies leading into elections.
U.S. Supreme CourtTrumpSpaceXElon MuskBrent crudeMexicoFIFA World CupBoliviaBloombergIPOFIFASupreme CourtPRIVATEDXY
– SpaceX's IPO could influence tech sector valuations and investor sentiment.
– Brent crude prices are declining, reflecting geopolitical tensions easing.
– The FIFA World Cup has begun, with ticket pricing controversies potentially affecting viewership.
– Asian stocks are expected to rise, following Wall Street gains.
trade policyIPO marketgeopolitical risksports economics
▸ Full transcript
Today's equity markets. When news breaks, a red head across the Bloomberg terminal, Bloomberg has you covered. Trump's global tariffs are struck down by the U.S. Supreme Court. For all the context and clarity you need, there are going to be tons of tariff headlines until midterm elections. Here at first on Bloomberg. Bringing you the latest geopolitical news whenever and wherever it happens, I'm David Gouret on the Solardia Uni in Bolivia, and this is Bloomberg. This is Asia Trade. I'm Shia Rian in Tokyo. The tough story is this hour. SpaceX is set to make its trading debut after the biggest IPO in history, launching it into the ranks of the largest public companies and boosting Elon Musk's fortune to almost a trillion dollars. Asian stocks are set to extend Wall Street gains as President Trump calls off a planned strike on Iran, signaling a deal is close, with Brent crude tumbling back to $90. And the biggest show on earth kicks off; the FIFA World Cup begins with a win for co-host Mexico amid controversy over ticket prices and geopolitics.
Analysis

The U.S. Supreme Court has struck down Trump's global tariffs, which is expected to generate a flurry of tariff-related headlines leading up to the midterm elections. Meanwhile, SpaceX is set to make its trading debut after the largest IPO in history, significantly boosting Elon Musk's wealth and positioning the company among the largest public firms.

15:55
PDT
Women's Club World Cup to debut in 2028.
FIFARommieFranceArgentinaQatarKansas CityCMOUSWorld CupClub World CupFavorite World Cup
– Focus on high standards and commercialization.
– Potential for the event to be hosted in the U.S.
– Youth engagement through ticket allocation is a priority.
– Increased investment in women's football is expected.
women's sports investmentyouth engagementglobal commercialization
▸ Full transcript
to meeting with our CMO, Rommie, and pushing into sort of challenging him to sort of say, hey, listen, this is packaged. How many standalone do we have for the women's World Cup? Interesting. A lot of different conversations around that. But ultimately, it's like, what are we doing? I mean, like the Club World Cup for women, it's now a real thing. The first iteration will be in 2028. It's important that it's a high standard. And I've said to them, we've got to have it in a region. Hopefully, it'll be here in the US that we can commercialize it, that we can really give it what it deserves in terms of access around the world, viewership. All right, we're going to move to our rapid fire. Pretty easy, we'll bounce it back and forth. I'll start in the new pickup. You ready? I'm ready. All right. Favorite World Cup memory as a coach? France, 2019. Quarterfinals. Favorite World Cup memory as a fan? Qatar, last World Cup final. Amazing. France, Argentina, classic. That was a hell of a match. Storyline you're most excited about going into this World Cup? Just the debutants, the new teams, I think it's exciting. One change to the World Cup you would make tomorrow? I would put 500 tickets aside for kids, just for kids to come. All right, that's a good one. Underrated host city for 2026? Oh, god, my wife's from Kansas City, so I can't say that. I don't think there is one. I think these cities are going to be amazing. Favorite player of all time? Oh, hi, Maradona. Male player.
Analysis

The women's Club World Cup is set to launch in 2028, with a focus on high standards and commercialization, potentially in the U.S. This initiative signals a significant investment in women's football, aiming to enhance global viewership and access.

The emphasis on including youth in World Cup events, such as reserving tickets for children, reflects a strategic move to engage the next generation of fans. This could lead to increased long-term loyalty and market growth in the sport, making it a critical area for stakeholders to monitor.

15:53
PDT
FIFA mandates female coaching representation.
FIFAGianniU.S.Title IXCongressIXFEDFUNDS
– Investment in women's football is increasing.
– Upcoming Women's World Cup expected to generate significant revenue.
– Focus on preparing female coaches through education and experience.
– Decline in women on sidelines despite Title IX advancements.
women's sports investmentcoaching diversitywomen's football growth
▸ Full transcript
Isn't one of the changes that you made that every team must have at least one female head coach or assistant coach? Yeah, I mean, and the reality is you hope these things happen organically, but they haven't. I mean, listen, the U.S., Title IX was a game changer for us in terms of access and opportunity, but we're seeing less and less women on the sidelines. And I think, you know, this was a passion for Gianni. I mean, he was like, I want every head coach to be female. I'm like, we're not quite there yet. We've got to make sure that these coaches are prepared, that they have experience, that they have education through coaching licenses. So it's not just creating the regulation, it's creating the pathway to the regulation. I read a quote of yours about your current job that you said you didn't come into this job to, and again, keep me honest here, to protect comfort. You're a straight talker. What is some straight talk that you've given to your colleagues at FIFA and to Gianni about growing the women's game and what FIFA's role can be in ensuring that these, in investment terms, these gains are consolidated? Well, yes, Gianni appreciates the straight talk. I just gave a speech to Congress and basically to the 211 presidents of the Federation just sort of said to them like if you don't invest in women's football you're missing out.
Analysis

FIFA is implementing a regulation requiring every team to have at least one female head coach or assistant coach, addressing the declining presence of women in coaching roles despite the progress made by Title IX. The focus is not only on creating regulations but also on ensuring that these coaches are adequately prepared and educated, highlighting a commitment to sustainable growth in women's football.

The push for female representation in coaching roles reflects a broader trend of investment in women's sports, which is gaining traction as attendance and interest rise. Smart money should note that FIFA's commitment to women's football could lead to significant financial returns, especially with the upcoming Women's World Cup expected to generate substantial revenue that will be reinvested into the sport.

15:48
PDT
Women's football attendance is increasing significantly.
FIFADenverBank of AmericaNauvienWorld Cup
– Projected revenue from the Women's World Cup is $1 billion.
– All profits from the Women's World Cup will be reinvested into women's football.
– Professional leagues for women are becoming more stable and attracting investment.
– Global club championships for women are being established.
women's sports investmentattendance growthglobal championships
▸ Full transcript
It's interesting in talking to you, Jill, even for the past little bit about how fluidly you move in your job and obviously based on your experience between the men's game and the women's game. It is not at all hyperbole to say you have been a chief architect of the women's game globally and certainly in this country. Where are we in that journey? You know, I mean, I know we're very focused on the World Cup, the men's World Cup this summer, but there'll be one next summer for the women. How would you describe the state of the women's game? I mean, I think it's, you know, the signals are out there, right? We're seeing attendances go up. I mean, I think the Denver and the end of a cell team, it was 62,000, 63,000. So you're seeing a lot of these amazing signals. You know, the women's World Cup next year. And so yes, I straddle both, but obviously have one eye on next summer as well, because you know, this will be the first I mean, it was 500 million, I think they made off of the last one. Now we're looking a billion and 100% of that money will be reinvested in the women's football, which is huge. But we're also seeing the ecosystem grow. We're seeing now club championships for global club championships for women like we have on the men's side. We're seeing professional leagues become more stable, become more, you know, in terms in terms of attendance, investment. So I think, listen, any, even.
Analysis

The women's football ecosystem is experiencing significant growth, with attendance at events like the Denver team reaching over 62,000. The upcoming Women's World Cup is projected to generate $1 billion, with all profits reinvested into women's football, indicating a robust future for the sport.

Investment in women's football is becoming more stable, with professional leagues gaining traction and global club championships emerging. This shift suggests a growing market opportunity that savvy investors should monitor, as the landscape for women's sports continues to evolve positively.

15:44
PDT
Soccer is learning from American sports to enhance match-day experiences.
FIFAGiannisOrlandoNew YorkClub World CupSouth AmericaBut Jason
– Demand for World Cup tickets is exceptionally high, indicating strong interest.
– Cities hosting soccer events can expect significant economic impacts.
– Premium hospitality and interactive experiences are becoming standard.
– Traveling fan bases contribute to local economies during major events.
sports entertainmenteconomic impactfan engagement
▸ Full transcript
I mean, that's just kind of table stakes, but soccer, it feels like, is learning a lot about how to build around the match. Is that fair? Yeah, I mean, I listen to, we have offices in Miami now, and in fairness, Giannis spent a lot of time now going to American sports. We went to an Orlando basketball game. The idea of the players coming out one by one, being introduced, we did that last year in the Club World Cup. So there's a lot of learnings just that sport as entertainment is, I think is very real. I mean, you know, last year we were walking around stadiums and just seeing the amount of premium hospitality, you don't see that in Europe. You don't see that in South America in terms of just space. So I think, you know, we're learning a lot, you know, hydration breaks that you can actually commercialize now. I mean, there's all kinds of different things. You know, one of the things he loved was the fitness camp, the dance camp. I mean, these are things that in Europe, they're very traditional because the game is the focal point and nobody gets distracted by anything else. Whereas I think in America, we're used to having a show around the show. Also, I can just imagine the social impact of social media, the connectivity around the world is just massive, those numbers. But Jason, I'm also wondering the economic impact to a city like New York. Those numbers have to be bonkers. And I'm assuming, Joe, that those fanbases we just talked about travel very impacts, right? Yep, very much so. They travel well. Yeah. I mean, Jason, I don't feel like I'm going to speak to that. No, I mean, I think it's very true. I mean, this is one of the big, I dares.
Analysis

Soccer is evolving by adopting entertainment strategies from American sports, enhancing the match-day experience with premium hospitality and interactive elements. This shift indicates a growing recognition of the sport's potential for commercial growth in the U.S. market.

The significant demand for tickets, with 500 million requests for the upcoming World Cup, highlights the sport's increasing popularity and the need for effective supply management. This trend suggests that cities hosting events will see substantial economic benefits, driven by traveling fan bases and increased local spending.

15:42
PDT
Projected revenue for men's World Cup: $4-6 billion.
FIFAJill EllisAlex RodriguezJason KellySouth KoreaReal MadridColombiaMexicoArgentinaLAUSThe Scottish
– Projected revenue for women's World Cup: $1 billion increase.
– 500 million ticket requests for the upcoming World Cup.
– Soccer is becoming the largest youth participation sport in the U.S.
– Dynamic ticket pricing is being utilized to manage demand.
global sports marketfan engagementticket pricing strategyyouth participation growth
▸ Full transcript
It's a random draw, but in terms of where teams play, we need to ensure that South Korea is playing in LA, as they have an amazing player there in Son. It's about looking at location, population, and general interest. For example, last summer, it didn't matter where you put Real Madrid; they will sell out almost anywhere in the club world. There are certain teams, like Colombia, that have phenomenal support. Every time you see the US play Colombia in the US on the men's side, it's full of yellow jerseys. Obviously, Mexico has a strong following as well. Given that we're such a melting pot, there will be a large following that will travel. The Scottish fans will come; they always travel. There are some amazing fan bases. Jason, we have crazy fans in America. Now, in Miami, I'm really feeling it. There's a very European vibe in Miami. They start partying at 6 or 7 o'clock in the morning, drinking. So, I guess my question is, who are some of the craziest, most rabid fan bases? Listen, the Latin American market is phenomenal. In Argentina, the fans are amazing, and Colombia's fans are the same. They don't stop the entire game, moving their arms and singing; it's nonstop. That's what's going to be really cool for US fans to experience, as we tend to be more subdued compared to them.
Analysis

FIFA anticipates significant global viewership and revenue for upcoming World Cups, projecting $4-6 billion for the men's tournament and a $1 billion increase for the women's tournament. The demand for tickets is unprecedented, with 500 million requests for the next World Cup, indicating a robust interest in soccer, particularly in the U.S.

15:37
PDT
500 million ticket requests for the upcoming World Cup.
FIFAJill EllisUS Women's National TeamMiamiWorld Cup
– Dynamic ticket pricing is a key strategy for managing demand.
– FIFA is under scrutiny for ticket pricing amid high demand.
– Strategic planning for venue allocation is crucial for revenue maximization.
– Internal teams are dedicated to managing ticketing logistics.
demand managementticket pricing strategyrevenue maximization
▸ Full transcript
For this one World Cup, this one that's coming up, there are 500 million ticket requests, which is 10 times the last two. So I guess my question to you, Jill, on that is, with that sort of demand, how do you manage the supply? What are the conversations you guys have inside of FIFA because you have to manage the economics completely differently with that sort of demand? Well, in fairness, there's a whole team that manages this event. So we have a whole team behind it. But I mean, I think the dynamic ticket pricing is very real. I think that's the other thing. FIFA's been taking a lot of hits about the ticket pricing, but the reality is the demand is so big you can't control the resale and all these types of things. But internally, I mean, they have to keep a lot back, obviously for partners. How do you eek it out? How do you make sure that the demand is there? I mean, we still got certain games I think we're trying to push and to sell. But they have a whole branch of ticketing experts that go in there and look at everything. I mean, even when you map out where you want teams to play, who do you want in what venue? I mean, we're doing this currently right now with the Women's World Cup. We haven't released the schedule because we're looking at the size of the stadiums. Where do you want teams playing to maximize revenue? So yeah, this strategy happens years in advance, for sure. That sort of demand. I mean, can you, I'm turning this back on you. I mean.
Analysis

The upcoming World Cup has generated an unprecedented 500 million ticket requests, indicating a tenfold increase in demand compared to previous tournaments. FIFA is facing challenges in managing this demand, particularly with dynamic ticket pricing and the need to allocate tickets strategically to maximize revenue.

15:35
PDT
Men's World Cup projected revenue: $4 to $6 billion.
FIFAWorld CupChinaQatarUSDCNH
– Women's World Cup projected revenue increase: $1 billion by 2027.
– Global viewership for men's World Cup: 5 billion; women's World Cup: 2 billion.
– FIFA redistributes funds to enhance sport infrastructure.
– Negotiations for broadcasting deals in China ongoing.
global sports revenuebroadcasting rightssoccer market growth
▸ Full transcript
To be competitive, and I think that's going back to my early comment about this sport being truly global, is yes, I think on any given day, you're going to see one of the minnows beat the Giants. And that's kind of what the exciting thing about this sport is; you've got such a whole world really participating. Give us an idea of some of the numbers as far as how many people around the world would watch these events, like the last two championship games, for example. Yeah. What kind of revenue would you say it generates? Well, I think that the last World Cup, and obviously that was Qatar, was five billion globally. The women's World Cup in 2023 was two billion. We're projecting, you know, 2.5 to three billion. I mean, you know, it's broadcast to me right now. We're in China negotiating broadcast deals for China. You know, the whole world really tunes in in terms of revenue. So for the women's World Cup, we're projecting this will be a $500 million increase. It'll be a billion in revenue for next summer in 2027. And for the men's World Cup, you're probably talking upwards of four to six billion, I would say in that range. So yeah, I mean, the numbers are big, but those are the numbers that go back into the sport. You know, for example, we give, FIFA gives every participating country, that's 211, they get FIFA forward money. So the money gets redistributed back into the investment of the sport.
Analysis

The FIFA World Cup and Women's World Cup are projected to generate significant revenue, with estimates of $4 to $6 billion for the men's tournament and a $1 billion increase for the women's tournament by 2027. This financial growth indicates a robust global interest in soccer, with billions of viewers expected to tune in, particularly from emerging markets like China.

Smart investors should note the increasing revenue potential tied to global sporting events, especially as FIFA redistributes funds to participating countries, enhancing the sport's infrastructure and engagement. The projected viewership numbers suggest a growing market for broadcasting rights and sponsorships, particularly in regions with expanding soccer fan bases.

15:32
PDT
Soccer is becoming the largest youth participation sport in the U.S.
FIFAUS Women's National TeamMLSWorld Cup
– The Women's World Cup attracted two billion viewers in 2023.
– Established professional leagues, including MLS, are solidifying soccer's presence.
– A growing educated fan base is emerging in the U.S.
– The upcoming World Cup is expected to further boost soccer's popularity.
youth sports growthglobal sports marketsoccer investment opportunities
▸ Full transcript
Global sport. I mean, you always hear, obviously, you've got American football and baseball, but it's played everywhere. So I think you've got an immediate global audience. There's not a bigger audience for it than, obviously, the World Cup. I mean, even the Women's World Cup, two billion viewers in 2023. So you've got probably the most global sport out there. I think it's in the U.S., it's trending. I mean, I think it's becoming probably the largest participation sport amongst youth. So you've now got a whole generation of people playing it. You've got established professional leagues here, I mean 30 plus teams in the MLS, obviously the women's league. So it's not just emerging anymore, it's very much here. There's a baked-in fan base, you've got an educated fan base now. You've had success, you know, obviously the women's teams had a lot of success on the global stage. Listen, I think it's a can't miss sport. And I think people that are engaging in sport, and especially in America where we make it something that it's a can't miss, it's such an exciting... I mean, there's nothing like the last five minutes of a soccer game. You mentioned Jill, the three-ring circus of it all. And there are, I mean, it may be a 12-ring circus at this point in this lead-up. We're talking to you just, you know, a few weeks before it all kicks off. And everybody's talking about something. I recently, you know, talked with your colleague, Johnny and Vantino, about ticket prices. People are worried about visas. People are worried about who's gonna play like what from your job perspective like what do you worry about in this, you know, sort of like 10...
Analysis

Soccer is rapidly gaining traction in the U.S., with youth participation on the rise and established professional leagues solidifying its presence. The upcoming World Cup is expected to amplify this trend, showcasing soccer's global appeal and the growing fan base in America.

The significant viewership numbers for the Women's World Cup indicate a strong market potential for soccer-related investments. As the sport becomes more mainstream, opportunities for sponsorships, merchandise, and media rights are likely to expand, making it a lucrative sector for investors.

15:30
PDT
Jill Ellis highlights the excitement surrounding the World Cup in the U.S.
Jill EllisFIFAUS Women's National TeamMiamiUSThe DealJason KellyAlex RodriguezChief Football OfficerWorld CupsNational TeamThe World Cup
– The World Cup is expected to have substantial business implications.
– FIFA's leadership is focused on maximizing the event's impact.
– The event is seen as a pivotal moment for soccer's growth in America.
– There is a sense of anticipation for the financial numbers associated with the tournament.
sports investmentglobal eventssoccer market dynamics
▸ Full transcript
So yeah, I mean, the numbers are big, but those are the numbers that go back into the sport. Welcome back to The Deal, I'm Jason Kelly and I'm Alex Rodriguez. All right, Alex, coming up on the show, Jill Ellis, she is the Chief Football Officer of FIFA, meaning she's one of the chief architects of the global game of soccer. Also, not for nothing, she won a couple of World Cups in 2015 and 2019 as the head of the US Women's National Team. The World Cup, even if you wanted to escape it, you couldn't. And I haven't. I'm down in Miami. I mean, it is everywhere and I cannot wait to dive into the numbers of what FIFA represents. And all eyes are going to be what happens next in the business of soccer. Coming up, Jill Ellis. Jill Ellis, FIFA's chief football officer. You know, Alex, we love to make this show timely. What is more timely than talking to the chief football officer of FIFA on the eve of the World Cup? So let's start there. How are you feeling about this World Cup? I mean excited. I think the, what I've learned over time, you know, whether either competing in them or watching them is there's always a lot of contrary. It always feels like a three-ring circus kind of getting into there, but once the games kick off, it's magical. So excited, obviously I'm from the US. So it's exciting to have a World Cup back here on the shores of America. So I think it's gonna be brilliant. You're feeling it down in Miami, aren't you? Oh, there's no doubt. I mean, I think for the first time, Joe.
Analysis

The upcoming FIFA World Cup is generating significant excitement, particularly as it returns to the U.S., with Jill Ellis, FIFA's Chief Football Officer, emphasizing the event's magical nature once the games commence. This World Cup is not just a sporting event; it represents a major business opportunity in the soccer industry, with all eyes on the financial implications of the tournament.

15:26
PDT
T-Mac favors the Buffalo Bills for a championship win.
T-MacBuffalo BillsOrlando MagicKevin GarnettKobe BryantNBCRapid Fire
– He emphasizes the importance of class and professionalism in sports.
– T-Mac is developing a basketball league with influencer ownership.
– The conversation highlights the challenges of transitioning from high school to professional sports.
– There is a growing trend of athlete-led business ventures.
athlete-led venturescommunity-driven sportssports business disruption
▸ Full transcript
Next gen sports, all right, A-Rod. What team do you want to see win a championship more than anything? It's supposed to be Rapid Fire, everybody's stuck me on that one. Should be easy for you. No, not really, because I played for three franchises that I did to my heart, but I'll say Orlando Magic. Any sport. Oh, any sport. Yes, sir. Oh, Buffalo Bills. There you go. There you go. Okay, okay. Got a good one. I know it's any sport. All of the money, baby. Oh, listen, Buffalo Bills, that's probably a better bet than the Orlando Magic, unfortunately. I was confused why he wasn't saying it. I didn't hear any sport. Yeah, there you go. And he's for it. Well, T-Mac, this has been amazing. I really, you know, as we got into this even more, the parallels between you guys are really incredible, especially the move from Florida, going pro, ownership, all of those things. And T, let me tell you, like, I followed your career from day one, just like Kevin Garnett, right? Because it was very rare for guys to basically go from high school to the pros, right? And we were part of a small fraternity, Kobe being another one. But you mentioned comport yourself in a classy way. That's what I've admired the most. Obviously, your world is Hall of Fame and one of the elites of all time. But the way you comport yourself with your wife, your four kids, the way you run your business, you're killing it on NBC. So just keep killing it. Man, I appreciate that means a lot, man. Thank you.
Analysis

T-Mac expressed a desire to see the Buffalo Bills win a championship, highlighting his connection to multiple franchises. The conversation also underscored the importance of maintaining a classy demeanor in both sports and business, reflecting on the challenges faced by players transitioning from high school to professional leagues.

Smart money should note the growing trend of athlete-led ventures, as T-Mac is building a basketball league with ownership stakes for influencers. This indicates a shift towards more personalized and community-driven sports initiatives, which could reshape traditional league structures and fan engagement.

15:24
PDT
OBL is establishing a legitimate league with celebrity team owners.
OBLJadakissLorenz TateJohn WallTim Hardaway, Sr.ChinaAustraliaGMSGANew YorkNorth CarolinaTim HardawayUSDCNH
– Influencers like Jadakiss and Lorenz Tate are involved, enhancing market visibility.
– The league is exploring international expansion opportunities.
– The focus on youth talent globally could attract new audiences.
– Ownership stakes for influencers may drive further investment.
sports investmentglobal expansionyouth engagement
▸ Full transcript
I did at my house versus what I did back in 22. Let me start cities. Let me start a battle of the cities. Let me create teams so I could build some value up and create opportunities for some of my friends or influencers in these respective cities and give them ownership of these teams. So I have Jadakiss, right? We all know who Jadakiss is. He's from Yonkers. So I gave him the New York team. He has 15% in his New York team. Lorenz Tate is my good buddy, who's a big-time actor from Chicago. He has the Chicago team. John Wall is from Raleigh, North Carolina. I gave him the Raleigh team. Tim Hardaway, Sr. has the Miami team. So I started them starting out with eight teams and giving these respective GM/owners 15% in ownership and also allowing them to manage their teams. And we're having trials like this is, I'm building a real league. Like this is not a gimmick. This is a real thing. So I'm pretty excited about the opportunity and where this is going. And I'm already getting calls from my partners in China. They want me to bring it over there. Australia is calling. So global is where we want to take it because there's a lot of talent when you look around now. I mean, you have all of these kids around the world trying to mimic us. You look on social media now. You see a Chinese kid looking like, you know, SGA out there playing basketball.
Analysis

The OBL basketball league is evolving with a new structure that includes team ownership for influencers and celebrities, enhancing its legitimacy and market appeal. This pivot aims to create a global platform for basketball talent, with interest already emerging from international markets like China and Australia.

Smart money should note the strategic partnerships with well-known figures in entertainment and sports, which could drive engagement and investment. The focus on global expansion indicates a potential for significant growth in the basketball market, especially as youth worldwide increasingly emulate NBA players.

15:21
PDT
The OBL platform aims to support passionate basketball players.
Kobe BryantKevin GarnettOBLbasketball
– Initial capital raising efforts faced challenges but provided valuable learning experiences.
– The speaker is pivoting to leverage personal resources, such as their home gym, for the league's development.
– Feedback from trial events indicates potential for the OBL concept.
– Belief in one's vision is crucial despite external skepticism.
sports investmentathlete developmentalternative leagues
▸ Full transcript
Unknown basketball player. Who's this kid from Florida? Well, I leave that camp and a month later, I'm the number one player in the country. So I went from unknown to the number one player in the country. Now it talks about, damn, this kid is actually good. Kobe Bryant just came out the year before him. Kevin Garnett came out the year before him. So now that talk about being a draftee in the 1997 draft straight out of high school, that platform did it for me. I'm creating this OBL platform for those guys that still have a deep love and passion for the game of basketball. And my proof of concept trial was I went to six cities. I'll invite 32 players and I'll take eight players, the best players, to Sunday for the championship and have them play one-on-one, winner takes all. So now after that season, I'm going on a capital run trying to raise money for my league because I'm getting good feedback and I think I've created something magical. Well, I struck out. I struck out. And the one thing, I'm glad that it went that way because I learned a lot on that journey, right? Everybody's not gonna believe in your vision, right? Everybody is not gonna be able to see your vision and what you're trying to create. I get that. So I believe in me. Let me do it something different. Let me take a pivot and do it different. Like, yo, I have a gym at my house. I'm gonna bring everybody in.
Analysis

The speaker reflects on their journey from being an unknown player to becoming the number one player in the country, emphasizing the importance of the OBL platform they are creating for passionate basketball players. They acknowledge the challenges faced in raising capital for the league but express a commitment to pivot and innovate in their approach.

15:17
PDT
Absolutely, man. Yeah, I was, you know, I mean, we talk about having a whole freaking consonant on your back and carrying that. Yeah. T, I w…
▸ Full transcript
Absolutely, man. Yeah, I was, you know, I mean, we talk about having a whole freaking consonant on your back and carrying that. Yeah. T, I want to go back to you mentioned Michael Jordan, Kobe Bryant. Did you ever have conversations with Michael or Kobe that helped you out? And if so, what did they tell you? So I had conversations with Cole. Cole was like my brother because he came out a year early before me out of high school like us. And I was struggling my work a Cole struggled his rookie year because Dale Harris, for some reason, they wanted to make it hard on the high school kid, right? So he went through it, then I go through it. And it was a time where I was like, man, I got, I have to talk to someone that actually has been through this. Let me call my brother Cole. So we had extensive conversations, you know, just staying, you know, trust the work, Matt, trust the work. It's gonna pay off. You know who you are. And just having those conversations got me through through a really challenging rookie year. I can remember, man, I get to Orlando. Cobb is winning championships at this time. I'm coming up now in the league. So they're talking, you know, trying to compare it to who's the best wing and my name is coming in that. And you know, if you know anything about Cobb, Cobb doesn't want anybody to compare to him at this time. So that's that right there. I know him. I get it, but that's where I come in is like...
Transcript evidence
🦉 News Assistant
Thinking…