Stocks Extend Rally in AI-Led Rebound; Trump Says Peace Talks on Track — Bloomberg Brief 6/9/2026

[0:13] It's 5 a.m. in New York City, 10 a.m. in London. Good morning. I'm Bonnie Quinn with your Bloomberg Brief. Let's get you set up for the day. Futures point to a continued rebound as AI momentum returns and open AI files confidentially for an IPO. Oil tumbling as President Trump says peace talks are on track as Iran and Israel vowed to end attacks. And China laying the groundwork to spend close to 300 billion U.S. dollars on building data centers over the next five years. Let's get a check on how markets are faring now around the world. [0:45] First of all, after the brutal sell-off yesterday, Winnie Sue, tell us, how is Asia faring overnight? Winnie. Yeah, good morning, Bonnie. A very nice rebound that we're seeing in Asian stocks today with the MSCI Asia here up about 2.5 percent after three days of declines. And yes, it is coming off that easing geopolitical tensions in the Middle East and lower oil prices. But also as investors seek more opportunities after this big AI sell-off. And hence, you can see on the board [1:16] that the cost fee here up about 8.2 percent, pretty much erasing all losses from yesterday. Now, remember, it is the world's best performing stock year today. But you flip the board and look at another bright side today. It's actually in the world's worst performing stock gauge so far this year. [1:34] An Indonesia stock market here is up about 7 percent. And that's coming after the Bank of Indonesia announcing a surprise rate hike. Now, that is to support its currency. And hence, we are seeing a bit more upside for the Indonesian rupiah as well as the 10-year yield also tracking further higher. [1:52] All right, trouble across some Asia-Pacific countries. Winnie, thank you so much. Now, let's get to London for a look at Europe. Here is Justina Lee. Justina. [2:00] Good morning, Bonnie. Now, with that move down in oil, of course, we're seeing a bit of a risk on day in Europe today. I mean, starting with where bond yields are going. [2:10] I mean, they're kind of falling a bit, kind of ahead of the ECB decision coming this week, where I think a lot of traders have already priced in a 25 basis point hike. [2:20] And so when we kind of look at the rest of the market, I mean, the dollar is weaker today, also kind of reflecting a bit of that risk on mood. And so we're kind of seeing a move higher for kind of the pound sterling. [2:31] And also, we also got some pretty positive retail sales number out of the U.K. today. Now, of course, the stocks Europe 600 is also up today. And we're seeing kind of like a lot of strength, especially in the banks all across Europe today. [2:45] And of course, when it comes to banks, the focus is all on the possibility of a big bank deal, you know, in Monte Gepaschi in Italy. [2:53] And what I find interesting here is if you flip the board, you know, today we're seeing, you know, really stark outperformance in the Italian benchmark. [3:02] But actually, that's been going on for quite a while now. And of course, today, it's all about those Italian banks. [3:08] But it's not just because of that, you know, Italy also has an AI stock in microelectronics. [3:14] And that's been driving a bit of that outperformance lately, Bonnie. [3:17] All right, Justina Lee. Thank you so much. Well, Justina mentioned that move in oil. [3:22] And we are seeing WTI now trading below $90 a barrel on the front month contract. [3:27] Brent crude just above $92 a barrel. So this market has decided, obviously, that the Strait of Hormuz is going to open soon [3:34] and open quickly. We'll see how long that actually takes to happen and how many barrels will start to get off those tankers. [3:41] For the moment, we're continuing to see a reversal of that down day on Friday. [3:46] So yesterday, the stocks index was up 5.6 percent, retracing half that decline. [3:50] It looks like we might have another positive day today with futures pointed higher on the Nasdaq 100, S&P, [3:55] and for the small caps as well. Let's take a look at bonds, because the CPI, obviously, is in focus this week [4:02] before the Fed chair takes the stand next week at his first FOMC meeting. [4:07] We have the two-year yield down about a basis poison and a half. That move is being reflected across the curve. [4:14] Not as much in the long end. That's firmly stuck to 502, 503. [4:18] But this two-year yield, even though it's down a couple of basis points today, [4:21] we're still 30 points above the top of the Fed's range for its policy rate right now. [4:28] So the bond market is definitely trying to tell the Fed something. [4:31] And even with this risk on returning, Bank of America Securities is saying 70% of its bear market potential red flags [4:40] are signaling that we could be getting very toppy here, and it might be time to take some profits. [4:46] We'll dive more into what Bank of America Security says a little bit later on. [4:49] First, though, let's get to some individual movers. Back over to London and Chloe Malley. [4:54] Good morning, Bonnie. We're seeing Applied Digital up very strongly this morning, more than 10% [4:59] after signing a 15-year lease with an AI hyperscaler. [5:03] And so this goes to show that there is still this very strong demand for AI infrastructure. [5:08] This is the fifth AI factory lease that Applied Digital has assigned. [5:12] And so we are seeing that really move the shares higher this morning. [5:16] And speaking of AI, we are seeing just across the entire sector really a lot of upward movement. [5:22] So companies like Micron, Nvidia, Qualcomm, Intel, all of them very much in the green today [5:27] as we are seeing this enthusiasm around the AI trade come back and start back up after some of the pullback [5:33] that we saw in that trade just last week off the back of this Broadcom outlook. [5:38] So we are seeing that very much in the green this morning. And finally, let's go over to some M&A news [5:44] with GSK, which has bought a U.S. biotech firm called New Valent for $10.6 billion. [5:51] And this is something that will broaden the cancer portfolio for GSK. [5:55] But we are seeing actually a bit of weakness in those shares this morning in London, down about 3.5%. [6:01] And that might be because the price tag is looking maybe a little bit too steep. [6:05] And so we are down a little bit there some weakness for GSK. [6:08] All right, Chloe. Thank you so much. Chloe Mellie will be back a little later in the program. [6:12] Also coming up this hour, we are going to catch up with Henrietta Pacman of Allspring Global Investment [6:16] on this bond market. And we will be speaking with Wei Li of BlackRock on the AI rally. [6:21] But first, China is preparing to spend around $295 billion over the next five years on building data centers [6:28] centers in its ambition to surpass the U.S. in the sector. Joining us now is Matt Bloxham of Bloomberg Intelligence. [6:34] But I guess this was to be expected, right? I mean, China was not going to wait around and sit on its hands [6:39] while the rest of the world built out data center infrastructure. Yeah, that's right. [6:44] Although, even though $295 billion is a lot of money, it's relatively small compared to, you know, [6:50] the spending we're seeing out of the U.S. hyperscalers, which this year alone could be upwards of $725 billion. [6:57] And that $295 billion that China's committing is over a five-year period. [7:02] Now, there are some differences there. I'm not sure if the China project includes power, [7:08] which could add significantly to the overall investment. [7:11] And obviously, some things like labor and land are substantially cheaper in China. [7:15] And I think they'll look to use locally sourced components, particularly chip hardware from the likes of Huawei, [7:21] which could also bring the cost down. But, yeah, you know, this is a real statement of intent from China. [7:26] That they want to close the gap with the U.S. AI industry. [7:31] Now, we also got the news that open AI has filed confidentially for an IPO. [7:37] I guess it's a race to the finish line. Is open AI going to be the last to the gate [7:42] and therefore less advantaged because of it, Matt? [7:46] It certainly seems that they're at the kind of tail end of this IPO frenzy we're seeing. [7:50] And, you know, I think even in statements around this confidential filing have suggested that they're not in a big rush [7:57] to float. They'll do it when the time makes most sense for them. [8:01] And perhaps they've still got a few things to do behind the veil of being a private company [8:06] before they kind of push those plans forward. But, yeah, you know, it's a kind of issue around, you know, [8:13] whether coming late is going to be an advantage or a disadvantage for them, given that there's so much demand for AI right now. [8:19] Do we learn anything from the confidential filing? I guess we don't hear too much, right, when it's confidential? [8:25] Yeah, no, nothing. I think really the most interesting thing is this comment they made that there's some things they still want to do, [8:31] which they might be better off doing privately. Difficult to know for sure what those things are. [8:36] But I think for me, it could be a bit of a rejig of their product line up. You know, they've lost momentum to anthropic, [8:42] particularly in the enterprise space. So perhaps there's quite a few things they're doing on the product side that would be easy to be done privately [8:49] so they can come to market with a cleaner offering and with some momentum behind that new offering. [8:56] All right, Matt, thank you so much. Matt's going to be back later in the show. That is Matt Bloxham of Bloomberg Intelligence. [9:01] Turning to the Middle East, President Trump renewing his claims of momentum towards ending the conflict with Iran [9:07] after a halt to hostilities between Israel and the Islamic Republic. [9:11] We have ongoing negotiations in Iran and with Iran that hasn't stopped. And we could have at least an idea by one or two days [9:25] from now. But I think it's going well. The blockade continues to hold 100 percent. Nothing is getting through our blockade. [9:33] No oil, no income, no nothing. Nothing is getting through the blockade. [9:38] Bloomberg's Abir Abu Omar joins us now from Dubai. So what more did the president have to say, Abir, [9:44] about peace talks and negotiations, what the U.S. is willing to give and what it wants in return? [9:50] Good morning, Vonnie. So look, you heard him speaking to reporters there in New York saying that the deal is still on the table. [9:58] We might reach a deal in one or two days. He did also say that he spoke to Israel's Prime Minister Benjamin Netanyahu [10:05] and that Israel's actions against Iran have been legitimate essentially because of Iran's attacks against Israel. [10:14] So it's not a narrative that we haven't heard over the past two months. It's certainly not a narrative that we haven't heard [10:20] since the initial ceasefire was reached on April 8th. The president has come out every week or so and said that a deal with Iran is imminent. [10:30] Now that faces some pushback from the Iranian side. Last week Hezbollah had rejected the ceasefire agreement that happened between Lebanon [10:39] and Israel. And what we saw over the past week, Vonnie, and the week before that even, is an escalation in hostilities in the GCC, [10:47] but also yesterday. Those attacks between Iran and Israel definitely mark an escalation since the ceasefire had arrived. But according to President Trump [10:56] and the United States side, a deal is still imminent. The blockade is still there. But the MOU or the interim deal, as we've been calling it, [11:04] is supposed to reopen the Strait of Hormuz immediately and extend the ongoing ceasefire for about 60 days. And that is what President Trump says is imminent. [11:15] He spoke to Benjamin Netanyahu and told him not to retaliate against Iran. And he also told both sides to just stop shooting. Both obliged yesterday. [11:26] We haven't seen a massive a tick up in escalations today, but still a wait and see mode when it comes to actually arriving to that MOU or interim deal. [11:36] And what that ensues for oil prices and the opening of the Strait of Hormuz, Vonnie. All right, Abir, thank you so much. [11:42] That's Abir Abu Omar in Dubai. Now to other top stories trending on the terminal this morning. [11:47] AI demand boosting China trade exports in May jumped more than 19 percent over last year. Imports surged 27 percent. [11:55] Chips and computers drove about half the growth for both exports and imports, with chip sales soaring 111 percent. [12:03] Indonesia's central bank delivers a surprise rate hike. Bank Indonesia raised rates by 25 basis points to 5.5 percent. [12:12] The move meant to stem foreign outflows triggered by policy uncertainty under the President. [12:18] The New York Knicks fell to the San Antonio Spurs for the first time. The score 115 to 111 for Game 3 of the NBA Finals. [12:28] Tickets at Madison Square Garden were priced as high as six figures even in the nosebleeds. [12:32] President Trump was there, coming as the guest of Knicks owner Jim Dolan. Game 4, also at the garden on Wednesday. [12:39] Coming up, Henrietta Pacman of Allspring joins next. This is Bloomberg. [12:45] This is Bloomberg Brief. I'm Vonnie Quinn in New York. [13:02] Two-year Treasury yields rising to their highest in more than a year as the latest economic data led investors to price in at least one-quarter-point rate hike this year. [13:10] Joining us now is Henrietta Pacman, fixed income investment COO at Allspring Global Investment. [13:16] Henrietta, so we had that repricing and then we look to be reversing that ever so slightly, but now after the jobs report, it's all gone blazing for a rate hike. [13:25] What's the likelihood we'll get one this year? So I think the likelihood is increasing. Two drivers, obviously, to this. [13:34] One is inflation. We still have the situation going on in the Middle East, and that is a driver on the on the inflation front. [13:43] But yes, I think we're also in a situation where the economy is strong, and that needs to be taken into account. [13:52] So you mentioned the drops report. Yes. I mean, we are gearing up to the World Cup. [13:57] And so I think that there's a bit of an effect there that investors need to take into account. [14:02] When you say he can affect from the World Cup, do you mean a little bit of a dampening and volatility city calling it out today saying, look, [14:09] you know, everyone goes to sleep or at least, you know, work stoppages happen all over the place when the World Cup is on. [14:15] Well, that can be an effect, too. But I think it's also, you know, looking at the shape of the job report on on Friday. [14:24] Can you just maybe expand a little bit when you say the shape of the job reports? [14:30] How do you mean and how does it relate to the World Cup? I'm not following. [14:33] So if you look at the makeup of the jobs report, there was a portion of that was due to leisure. [14:41] And you one has to sort of be a little careful to sort of see what the impact might be there related to the to the event. [14:51] That being said, if you look more broadly at the economy, we are in a situation where it looks pretty strong. [14:59] So then, you know that Kevin Walsh is going to come into the Fed. He's going to tout productivity, the possibility for America to continue to be number one [15:07] one and to continue with, you know, huge productivity. Why would he then try and make an argument for a rate increase? [15:15] So obviously, we're in a situation where we're looking at a new Fed chair. So we'll have to see what the reaction function looks like. [15:25] I mean, what we've seen so far is a reaction, reluctance to act in the face of the inflation pressures that we're seeing and in the [15:35] face of what we're seeing from an economic perspective. So I do think that some elements have changed now. [15:42] Obviously, the conflict in the Middle East has lasted longer. We are seeing higher prices in the energy sector for longer. [15:49] We'll have to see, you know, what impact that has and if it leads to a broadening of the inflation story as well. So, you know, [15:57] those are factors that have changed. It's that length of the conflict that we need to take into into account more from a growth [16:04] perspective. I think the picture there is possibly a little less clear. Obviously, you know, we have had a degree of bringing forward of [16:12] some of the consumption that, you know, we'll have to see how that is, how that evolves over the course of the year. [16:19] But if you look at deal making, if you look at the activity in terms of M&A and so on, it's still pretty buoyant. [16:29] You can see that animal spirits are pretty strong at this point in time. Henrietta, what are you looking for out of tomorrow's CPI? [16:35] So, year over year, consensus looking for a 4.2% growth in inflation. Now, that's going to be a little bit terrifying if we do see [16:44] that print. So, you know, we know what the drivers are for it. So, I think there's a degree of the market, you know, [16:52] knowing what to expect. But as I mentioned, right, it's, you know, is it going to be in that range? You know, what's the breadth of that [16:59] inflation? And, you know, as we look into sort of months to come is what kind of resolution do we have in the in the [17:07] Middle East and what impact that might have, particularly on energy prices. I do think that, you know, there is, you know, [17:15] we need to be careful about the green inflation as well. I mean, given the given the context and to see, you know, what impact that might [17:24] have and that will inform the reaction function of the of the central bank. So, Henrietta, the repricing that we got a couple of [17:31] weeks ago, you know, was very obvious and it was a big repricing. But what we've seen in the last couple of days is something [17:37] slightly different. We're seeing parts of the curve very much flattening. So, you have that 30 year yield stuck at around 502 [17:43] and it's staying there. It's not moving. And yet you obviously have the front end coming up. Is that what we should anticipate [17:48] continuing into next week and beyond? You know, obviously, the front end is informed by the expectations of rate [18:00] hikes by the central bank. If you look at the longer end, I think the sort of dynamics are a little different there. [18:05] It is has it has been a bit of a self safety valve for inflation expectations for the Fed maybe being a little behind. [18:13] I think that's also we see expressions of anxiety around deficits and so on. [18:19] So, I think the dynamics in the longer end will be interesting to watch. But, you know, for at this point in time, [18:25] we're actually steering away from that long end because of the sort of multiple elements that are at play there. [18:31] And just briefly, Henrietta, are you adding then? Are you even adding at the short end? [18:35] So, yes, we have been adding on the rate side as we've seen these moves and as some of these rate hikes [18:44] have been have been priced in. We think that we're starting to get interesting levels. [18:49] And we haven't just been adding on the sort of U.S. side of things. We have been looking globally [18:55] because there have been some some movements in the sort of short to intermediate and in other jurisdictions again. [19:01] And there the sort of dynamics and maybe a little different to what we're seeing in the U.S. given the exposure [19:06] that is different from an energy perspective from a growth perspective from an AI story perspective. [19:11] So, we've taken a more diversified bet in that space. [19:14] All right. Henrietta, thank you so much for joining us today. [19:16] Fabulous conversation. Henrietta Pacma of Allspring Global Investment. [19:21] Coming up, a look at what's making headlines in your front page news. This is Bloomberg. [19:25] This is Bloomberg. I'm Bonnie Quinn in New York. It's time now for your front page news. [19:48] First up on The Wall Street Journal, President Trump stepping up allegations of election fraud in California. [19:53] Came in the state's vote counting processes quote rigged. California law favors participation over speed, [20:00] according to the journal requiring election officials to verify and count every ballot [20:04] that is postmarked by election day and arrives within a week. There has been no evidence of impropriety. [20:10] Next up, The Washington Post on a federal judge throwing out the Trump administration's $100,000 fee on H-1B visas for highly skilled workers. [20:20] The move had been challenged by California and 19 other states. The judge declared President Trump's fee unlawful, [20:27] saying the president unilaterally imposed an illegal tax. The administration is expected to appeal. [20:33] And finally, we're looking at the Financial Times reporting ASML's CEO warning the EU against intervening directly [20:39] in semiconductor supply chains, arguing that reducing reliance on foreign tech requires building stronger [20:46] companies on the continent. Christoph Fouquet's comments come days after the EU unveiled plans for a new [20:52] chips strategy. All right, let's take a look at your markets. We have S&P futures pointed higher for potentially a second day of [20:59] gains. The dollar index down slightly. The yen is still above 160. We're watching that. And the two-year yield down just barely. [21:07] Coming up, we are going to be speaking with Wei Li of BlackRock. This is Bloomberg. [21:12] It's 5.30 a.m. in New York City, 10.30 a.m. in London. Good morning. I'm Bonnie Quinn with your Bloomberg [21:30] Reef. Let's get you set up for the day. Futures pointing to a continued rebound as AI momentum returns and [21:36] open AI also files confidentially for an IPO. Oil tumbling as President Trump says, peace talks are on track as [21:44] Israel and Iran vow to end attacks. And China laying the groundwork to spend nearly $300 billion on building data centers [21:53] over the next five years. So we'll begin with oil then. We have the WTI trading below $90 a barrel on the prompt month [22:01] contract and Brent just above 92. That is helping things. But we also are seeing this return of the AI trade or at least [22:08] semiconductor stocks. So yesterday we had the stocks index up 5.6 percent, which retraced at least half of that Friday [22:15] decline. Perhaps it will continue today. Certainly futures are pointing to that happening. [22:20] S&P futures and more so even NASDAQ 100 and Russell 2000 futures. If we look at bonds, we're seeing a little decline across the [22:27] board. But just a basis point or two. They are staying firmly where they are looking forward to the CPI data [22:34] tomorrow. And of course, the first Fed meeting under Chair Warsh next week and what that will bring. [22:40] But certainly the front end at least pricing at least one rate hike this year. Now we do have some words of warning out [22:45] there, particularly as regards to the market. Bank of America securities today out with a warning that 70% of their bear [22:53] market signals are flashing red. So we'll get to why investors might want to be cautious in a moment. But let's get to [22:59] some individual movers first and Chloe Mellie. Chloe. Good morning, Bonnie. This AI trade is very much [23:06] rebounding with all of this AI related stocks very much in the green in pre-market trading. If you look at specifically [23:12] at Applied Digital, that is a company that has just signed a 15 year lease with an AI hyperscaler. And so that really [23:18] underscores how resilient that demand for AI infrastructure still is. And so we are very much [23:23] seeing positive movement across that sector this morning. Moving on to M&A story and we've got New [23:29] Valant, a U.S. biotech firm soaring this morning in pre-market almost 40% because it is getting bought [23:35] by the the UK pharmaceutical firm GSK in a $10.6 billion deal. This is a deal that will broaden GSK's [23:43] cancer portfolio. And we are seeing investors in New Valant react very positively to this this morning. And [23:49] finally let's go over to Apple which is seeing actually a bit of weakness weakness this morning after [23:55] saying that it will be unable to roll out its Siri AI digital assistant on some products in the European [24:01] Union. And that is because of this long running standoff between the EU's antitrust watchdog and the company. And [24:07] so some of that tension is weighing on those shares this morning. So a little bit of weakness though not a major drop for [24:13] Apple in pre-market trading. All right. Chloe thank you so much. Chloe Mellie there in London. The team over at Bank of [24:20] America warning investors of a potential bear market and stocks strategists led by [24:25] Savita Subramanian writing that there are too many red flags going on writing high P.E. stocks were leading low P.E. [24:32] stocks by a wide margin a sign of excessive speculation. Second trigger closely related indicates lofty long term growth [24:40] expectations and breaching levels consistent with equities being more vulnerable to disappointment. Joining us now is [24:46] Weili chief global investment strategist for BlackRock. There is two of the red flags but there were so many including [24:52] consumer confidence short interest and so on. We are you seeing something similar at BlackRock. Well the biggest debate in [25:02] markets but specifically in the A.I. trade is earnings durability because if you look at multiples for P.E. [25:11] Magnificent seven at 25 times they are not really expensive. Right. So the question is really can they sustain at this [25:19] levels. And honestly I think there is a healthy debate to be had. I understand the occasional worry that surfaces about kind of you [25:29] know like all this spending it's starting to look like previous tech booms where adoption and revenue return took a lot longer [25:38] than expected. But I am also seeing evidence of very fast revenue rent. You look at the AR for anthropic for example but they're in [25:47] private right now for now. But even in public equities if you look at the earnings increase you look at margin [25:57] especially incremental margins still significantly higher than operating margin which means that the discussion of you know the [26:06] return on capital versus cost of capital. The answer is still very very clear. I think we're still early on in this A.I. [26:13] transformation. So even though there is a healthy debate to be had I am still overweight. The last thing I would say though as well is that there is [26:22] huge dispersion in this space. Yes you look at the eye watering return of tech of Magnificent seven of some of the names. But actually if you [26:27] construct baskets of you know shortage seller versus shortage buyer the dispersion the return is even greater. Right. So this is the space to be [26:41] selective and active. So how are you supposed to think about these IPOs that are coming to market. So three massive ones in the next few months. Right. I mean in a way is the SpaceX IPO [26:52] saving this market after the sell off that we saw which really followed one not even bad earnings report. Well I think it is [27:03] inevitable that we're seeing more kind of companies going to markets. We see greater debt issuance. We see equity issuance. And now we see [27:12] IPOs really big IPOs because pricing pressure is real and token spent cost pressure is pushing higher. So there is a funding gap that is [27:25] increasing. Right. All these companies are burning through cash. So it's no surprise that the competition for capital is increasing. In the near term I would say [27:33] this big IPOs they suggest confidence and conviction in the scope of AI transformation. But over the longer term I do worry about [27:44] liquidity drain because of this fierce competition for capital. But what is really interesting is that even though the absolute size of [27:52] those IPOs they are huge they are they are larger than what we have seen before. But if you look at its relative to the size of the U.S. equity market cap. [28:02] This is not extreme. This is similar to the levels that we have seen five years ago. So it is big but is not systemically worrisome for us at this point. And I also think that the [28:15] investors should look at IPOs and really think about getting exposures early on in the private to public life cycle as a source of alpha generation. [28:27] We have been in a situation where investors seem to be terrified to miss out on the right tail. Right. So there was a tiny tiny cost to hedge three [28:36] months out. It was really like ludicrously cheap to hedge for a downside risk. Is that changing a little bit reading more reports about you know [28:45] short sellers and how they're much more in the market. There's a lot of hedging in individual stocks let's say. Are you seeing more at [28:54] least preparation for an event that might be you know a little bit on the downside. We just had our internal media investment summit and [29:06] we had a session on hedging and diversification and it was a really spirited discussion and debate. But the short answer is that it's getting [29:16] harder to hedge and diversify in the traditional sense right because traditional diversifiers such as long duration [29:25] government bonds they're less effective in this environment of inflationary pressure. So the conclusion of the discussion is that [29:32] diversification is getting harder. It needs to be kind of scenario specific understand what you are hedging for because you know different [29:43] different scenarios require different hedges. And I'm also thinking about you know like more kind of market neutral strategies as the [29:53] potential source of diversification as the traditional diversifiers are less effective. If you look at the latest episode of markets getting nervous about [30:02] technology and AI names. Treasuries didn't work so well as a hedge. Gold didn't work so well as a hedge. Dollar worked better this [30:13] time. But last year it didn't work. So again going to show that there is no one size fits all. As we think about portfolio [30:20] diversification it needs to be a lot more scenario based and robust. All right. Way always so much of a pleasure speaking with you. [30:26] Way Lee of Blackrock. They're joining us. Now to other top stories trending on the terminal this morning. The Pentagon accusing some of [30:33] China's biggest companies of supporting the Chinese military. The Defense Department added Alabama, Baidu and B.Y.D. to a list determined to be [30:40] aiding the People's Liberation Army. The inclusion carries limited legal repercussions but can restrict companies' ability to contract with the U.S. [30:49] military. All three opposed the designation and vowed to take legal action to be removed from the list. [30:55] Coreweave executives sold more than $2.3 billion of their own holding since the company's IPO last year. The billionaire co-founders [31:05] behind the bulk of those sales capitalizing on a stock price that has more than doubled since March of 2025. The New York Knicks fell to the [31:14] Antonio Spurs but just the first time this time round. The score ended up at 115 to 111 for game three of the NBA [31:22] finals. Tickets at Madison Square Garden were priced as high as six figures even in the [31:26] nosebleeds. President Trump was there coming as the guest of Knicks owner Jim Dolan. Game four also at the garden is on [31:33] Wednesday. Coming up, Trump says peace talks are on track after Israel and Iran hold hostilities for now. We'll have more. [31:42] This is Bloomberg. Ongoing negotiations in Iran and with Iran that hasn't stopped and we could have at least an [32:09] idea by one or two days from now. But I think it's going well. The blockade continues to hold 100 percent. [32:17] Nothing is getting through our blockade. No oil, no income, no nothing. Nothing is getting through the blockade. [32:25] President Trump renewing his claims of momentum towards ending the conflict in the Middle East. [32:29] Joining us now from Washington is Bloomberg's Kasia Klimaschinska. So President Trump also saying earlier Kasia [32:35] that the U.S. would declare a total victory. I guess that may be a prerequisite for President Trump. Right. [32:40] But are we actually anywhere near some kind of an agreement even if both sides, Israel and Iran in particular, say [32:47] hostilities have stopped. We know they haven't quite. Yes. Maybe let's focus on the good side first. [32:56] Perhaps what's allowing oil to go down a little bit and stocks to focus on AI instead is the fact that Iran and Israel [33:06] seem to be following Trump's advice. And at least they are not escalating. They are not fighting. So that allows Trump again to focus [33:14] the narrative on talks with Iran. His objective is to reach a deal. Interestingly, yesterday when Trump was speaking to reporters [33:24] and also earlier on during a tele-rally that he held for South Carolina Republicans, he was talking about a total victory. [33:32] But it seems like at first the U.S. and Iran has to achieve some sort of an interim deal. And that's what we are still waiting for. [33:41] Yeah. I need more details there. Now let's move to domestic politics. [33:46] Fascinating race in California. But we do now have a two-person runoff in November, it looks like. [33:51] And it's going to be between Javier Becerra and Steve Hilton. It took a few days as we were expecting. [33:58] What's this runoff going to look like over the coming months? And what can the candidates learn from the people who didn't quite [34:03] make it to the runoff? A very unusual outcome here in California. Obviously, it's a deeply democratic [34:12] state, but in the general elections will have a Democrat, a former HHS secretary during the Biden era, and a Republican, a TV [34:22] personality, a British TV personality who used to speak on Fox News, Steve Hilton. He's now campaigning, you know, blaming the [34:31] California's overregulation on on Democrats and promising to bring some order to the state. So we'll see again, we'll see in [34:41] November, of course, President Trump has been complaining. He endorsed the Republican candidate. [34:47] He endorsed the Fox personality, but he also complained about how long it took in California to count the votes. [34:54] Even now, we are mostly relying on a projection from DDHQ, the decision desk headquarters. The official results haven't been announced. [35:02] And so Trump is saying, you know, without any evidence, that it shouldn't take so long to count the votes that [35:09] perhaps those results weren't right. Maybe he will try to question them in some way. But obviously, at first, we'll have to see who [35:17] wins in the general election. Well, it seems to be very annoyed that Spencer Pratt didn't do better. And in fact, Pratt did maybe a little [35:22] better than people might have anticipated. His use of social media, though, was fascinating. Anything the Hilton campaign will take [35:30] from the Pratt campaign? So I think President Trump doesn't like to endorse a loser. He is trying to always back people who [35:41] will eventually win. So that's part of the reason why he is upset. And again, California, he has all long been targeting California in part, [35:51] perhaps because he sees the current governor, Gavin Newsom, as a potential challenger to Republicans in presidential elections [36:00] more than two years from now. And overall, more broadly, during these midterms elections, Trump has a lot to be concerned. [36:08] We know that voters are upset, for example, about high energy costs that could translate, for example, into high grocery costs. [36:16] There are some significant challengers that Democrats managed to bring. For example, in Maine, we'll have primaries today. [36:24] Democrats have a candidate who appears to be pretty strong, who may be able to challenge their Republican senator, the incumbent, [36:31] Susan Collins, in November. All right, Kasia, thank you so much. A massive update there from Bloomberg's Kasia Klimashinska in Washington. [36:38] Turning back to tech now, China ramping up its AI ambitions, planning to spend $300 billion over the next five years building data centers. [36:46] Bloomberg's Neil Kampling joins us now for more. Sounds like a massive amount, Neil. But for China, I mean, it's a massive country. [36:53] They would need it. I mean, put it in context for us. How much would they need? Sure. Morning, buddy. I think it's a big number in principle, [37:02] $295 billion, but that's over five years to spend on building out a nationwide AI data center infrastructure. Let's put that number in context. [37:11] In the U.S., the hyperscalers are going to spend over $700 billion this year alone. So far larger than we're talking about in terms of China. [37:20] And their efforts to really build out their own self-reliance so that they don't need to buy as many of the AI chips or Nvidia and others. [37:28] But but the number themselves probably is is not as great as needed to be in future if they really want to have ambitions to try and match the [37:37] U.S. in terms of size and scope for the for the AI opportunity, I think. Now, let's move to the Apple worldwide developers conference, [37:45] because it does seem like investors were looking for an AI overhaul. What are we getting, Neil? [37:52] We're getting an AI reset from from Siri and the AI tools, but there's no massive change in terms of the step change for AI [38:00] with Apple themselves. The real incremental information I think we got from the conference last night was primarily around really the [38:08] software tools suggesting there's going to be a new set of iPhones this year coming out in September. [38:15] They're likely to include the foldable iPhone, which is something I think which many investors and consumers are hoping for [38:23] for a real real step change in the type of product that comes out from Apple. But that I think drives more of the incremental [38:30] opportunity for Apple than say AI does for the time being for sure. Yeah. Well, we have another IPO to contend with apparently this [38:38] year. Open AI filing confidentially already for an IPO. Is this a race, Neil? [38:44] It's a great way of putting it, Vonnie. It is really a race to the capital markets who can who can reach their first. [38:51] Is it open AI or anthropic to follow after SpaceX later this week? It's definitely, I think, a plan to try and sort of get the [38:59] wheels in motion to see who can raise capital quickest because they need to raise capital, as we've mentioned before. The [39:06] the spend on AI is so vast that they need to raise capital really to fund the ambitions, both open AI and anthropic. And it sounds like [39:16] last night we also heard that this is a path as well to potentially employees unlocking a tender sell in the next few weeks ahead of any IPO later this year. [39:26] All right. We'll be lost after these all go to market. We all know what to talk about, Neil. Thank you so much. [39:31] Bloomberg's Neil Campling. Staying on debuts, though, SpaceX's IPO said to be well oversubscribed with several institutional [39:38] investors placing orders of $10 billion or more of shares. Bloomberg learning that the banks leading the offering are now expected to [39:44] stop taking orders Wednesday after market close. Let's get more with Bloomberg's Matt Bloxham. [39:49] Matt, when you read that something is well oversubscribed, you can read it two ways, right? [39:53] Normally you have it's 2x oversubscribed, 10x oversubscribed. What does well oversubscribed mean? [39:59] I would probably say that's a little bit more towards the lower end of that. You know, I think generally when it's massively [40:07] oversubscribed, they're a bit more kind of transparent about the numbers. So, you know, I think, I mean, it's clear it's on [40:12] well on the way to being an adequately oversubscribed offering. You know, I think the issue is, you know, probably these [40:20] big investors that have kind of put up $10 billion are expecting to get nowhere near that volume in the actual book. [40:28] So, you know, I think we need a big oversubscription number to avoid any, you know, unanticipated big exposure for people, [40:35] which could, you know, create some selling pressure in the days after the IPO. Look, there's going to be some price discovery. [40:41] The first few hours and first few days. I guess we should expect some volatility. [40:46] But is there a mechanism for bankers to shore up, you know, the stock if it sees massive losses or anything like that? [40:54] Yeah, so, you know, typically a standard part of the process will be for the kind of underwriting banks to kind of manage that process. [41:03] You know, I think, look, that they've allocated 30% of this float to retail. I think there's generally a kind of huge amount of [41:10] excitement anticipation amongst retail investors about that. Obviously, the early index inclusion that Nasdaq has put in place will probably [41:20] create quite a bit of technical demand, too. So I think that there's quite a few things here that suggest it's going to be a fairly robust post-IPO [41:31] trade as long as they do get that big level of oversubscription in the book. [41:36] Yeah, Matt, it's going to be fascinating. Thank you so much, Matt Bloxham there of Bloomberg Intelligence. [41:41] Coming up, we're going to get you set up for your trading day. This is Bloomberg. [41:44] This is Bloomberg Brief. I'm Bonnie Quinn in New York. Now a look at what's ahead today. [42:02] So first up, we get ADP employment data at 815 Eastern Time, and that'll be followed by the trade balance at 830. [42:08] And don't forget, last month's trade balance was the biggest, second biggest ever, only surpassed by last year's trade [42:14] imbalance. Fifty-eight billion dollars of three-year Treasury notes going on auction this afternoon. [42:20] We'll be watching for any type of price movement there, anything interesting coming out of that. [42:25] Plus, U.S. congressional primaries in Maine, Nevada, North Dakota, and South Carolina. [42:30] This is a macro picture for you as we head into the Tuesday session. [42:35] Now, WTI is trading below $89 a barrel once again. At the same time, you have Nasdaq 100 futures [42:41] continuing that rebound after Friday's decline. And then the VIX index, well, it's come well down, [42:47] but it's still around 18. We'll be keeping an eye on the VIX. [42:50] You can be assured that it's not just Nasdaq 100 futures, equity futures across the board are pointed higher today. [42:56] As well, abroad, the KOSPI also had a massive rebound after that 8% decline yesterday. [43:02] We saw the beginning of that rebound in yesterday's session in the U.S. [43:05] and it continued around the world. That's it for Bloomberg Briefs. [43:09] Surveillance is next. This is Bloomberg. [43:11] This is Bloomberg. [43:12] This is Bloomberg.