SpaceX IPO Debuts; US-Iran Deal Nears

Bloomberg Audio Studios, Podcasts, Radio News.
Good morning, I'm Nathan Hager and I'm Alexis Christophers. Here
are the stories we're following today, alex As, we begin
with the latest from the Middle East. After threatening new
attacks on Iran, President Trump now says he's close to
a deal to end the war.
We just made a great settlement of the war with
the red and we're going to be a subject to
finalization of documents. We should get done over the next
few days.
President Trump made that announcement in an Oval Office event,
but just this morning, Iran's semi official news agency mayor
says the US and Iran are negotiating a potential agreement.
We get details from Bloomberg Middle East correspondent to Birabu
Omar in Dubai.
It's still unclear to us if that MoU Iran or
the Iranian media is reporting about is one that matches
what President Trump had suggested, and look, some of the
most important provisions there include what Iran says, a permanent
and immediate cessation of hostilities on all fronts, including in
Lebanon and Lebanon is a sticking point for Iran. Full
lifting of the naval blockade and the Strait of Her
Moves within thirty days, a commitment by the US to
withdraw its forces, reopening of the Strait of Her Moves,
suspension of sanctions on oil sales, and a lifting of
the blocked twenty four billion dollars of frozen assets by
the United States.
Those are Iranian frozen.
Assets, and an affirmation of Iran's commitment not to develop
nuclear weapons.
Bloomberg's Abirabo Almar reports Iron says final negotiations won't begin
until half of its frozen assets are released, oil sanctions
are suspended, and the naval blockade is lifted, and Nathan.
We now move to the biggest initial public offering of
all time. SpaceX has raised seventy five billion dollars in
the IPO, pricing more than five hundred and fifty five
mills million shares at one hundred and thirty five dollars
a piece at the IPO price, elon Musk's rocket, satellite
and ai company as a market value of about one
point eight trillion dollars. Alexis o'hanian is the founder of Reddit.
This feels like a milestone moment.
This was an investment thesis that was unthinkable a decade
ago for most investors, and I think now people are
coming to grips with the fact that space technology is
really here. What would have been science fiction US maybe
ten years ago is now science fact.
Reddit founder Alex o'hanian there. The company will debut on
Nasdaq under the symbol spc X.
And alexis The IPOs drawn demand for more than four
times available shares. Elon Musk's fan base in the retail
trading community has placed more than one hundred billion dollars
in orders for the stock. Musk will control eighty four
percent of the voting power after the IPO. Neil Minnow
is vice chairman at Value Edge Advisors. 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.
That's a Value Edge Advisor's vice chair Now Minnow now
SpaceX's governance policies in sher Musk is effectively able to
choose board members, and that would mean only he could
remove himself as CEO.
And Nathan Musk's personal wealth will sort of new heights
after this SpaceX ipo. Blas Penn's is deputy managing editor
for Bloomberg.
There is a really, really real chance that he will
be the first trillionaire in the world in the not
too distance future, depending on how the stock does on
the market. One of the positives of this IPO was
the sort of intertwined, interconnected nature of Elo Musk's empire,
where you take when you think about X Test Law, SpaceX,
Borging Company, all these companies have cross ownerships, they do
business with each other. There's a very kind of concluded structure.
For some people, that's a huge bus because Elo Musk
sits at the center of everything, and they believe in
Elon Musk. They believe in his and they believe that
he can drive more value out of these companies.
S Bloomberg's deputy managing editor, Blast Pens. He says shadow
markets are pricing of SpaceX stock debut with a potential
pomp of at least thirty five percent. Turning to Washington now,
and President Trump is nominating j Clayton to be the
next Director of National Intelligence. Bloomberg's Amy Morris reports from
the nation's capital. Jay Clayton has been serving as the
top Federal prosecutor in Manhattan and was chairman of the
Securities in Exchange Commission during Trump's first term. The cabinet
position oversees and coordinates eighteen US intelligence agencies. President Trump
Jay Clayton's an incredible talent.
Head of celigant Cromwell. He was head of the secs
Now Southern District. I mean, nobody has better credential, but
Bill will run for Shure. Well, He's done a fantastic job.
Trump's nomination of Clayton comes hours after the House failed
to pass an extension of the Foreign Intelligence Surveillance Act,
part of pushback over Trump's selection of Bill Poulty to
serve best acting Director of National Intelligence in Washington anymore,
as Bloomberg Radio, all right.
Thanks Amy, and back here in New York. There was
still a buzz in the air over the dramatic and
historic comeback win by the Knicks, and now fans are
possibly just one day away from something they haven't experienced
in more than half a century. Bloomberg sports reporter Randall
Williams has more on the Knicks quest for an NBA championship.
The Knicks haven't won a championship since nineteen seventy three.
They haven't even been back to the finals since nineteen
ninety nine, where they played the Spurs in that same series.
So this series in game four was revenge for not
only the Knicks themselves, but for fans. And you have
to think about it. James Dolan, the Knicks owner, was
talking a lot of smack before the game even began,
saying that he guarantee you to win. I wonder what
he was thinking when they were down twenty nine, but
evidently one of the most miraculous comebacks that I've ever seen.
A truly incredible result, Randal.
This was an absolutely epic game and one I'm going
to say we're going to be talking about forever.
I think that og Annubi is absolutely cemented in Nick's history.
Just for the last two plays of the game, you
have to think about Dearon Fox. This loose ball goes
skirting across the floor, Dearon Fox picks it up. All
you have to do is dribble. The clockoffs. He goes
up for a layup, it's blocked by Og. The next possession,
Og comes down, Jalen Brunson misses a shot.
OG tips it.
In those two plays back to back, you could argue
are the most clutch plays for the Knicks over the
last fifty years.
Yeah, og an instant legend for the next Now you
can hear more of Bloomberg sports reporter Randa Williams on
the Bloomberg Business of Sports podcast. New episodes drop Fridays
at noon. Get it wherever you download podcasts, and always
at Bloomberg dot com.
Yeah, one more way we can ride the Nicks euphoria,
because it is riding high in New York City. Alexis
and Bloomberg's John Tucker joins us with more on that
end of the story.
John, Good morning, Nathan. So how do you possibly top
Game four, the.
Greenest come back and ahead the playoff history?
How about a Game five?
When?
But that's insane? Anton. Anyway, everybody's excited. We don't quit. No, wait,
do that quit?
Come on the next Baby Nix five, Baby and the
guy behind the ultimate tip og and anwby.
Everyone's pretty excited.
I'm excited, to trust me, he's excited. And then there's
the knickswag. Fans have been snapping it up, whether at
the NBA store in Midtown or from street vendors with
suspect gear and this incredible ron has been a bonanza
for Bars. A word to the wise from Noel Donovan
at Bloom's Tavern on how to get in on game night.
My advice is get to know your local bartenders and be.
Friends of him well Z Bars is selling Blue and
Orange cookies, Tompkins Square, Begel's selling the Bruns and Bodega
Bengels Sandwich, Tall Poppy, and Chelsea has Nick's Cinnamon rolls,
Nicks Fever.
Catch it in New York coome John Tucker Bloomberg Radio.
I'm gonna get me some Nick Cinnamon rolls. Oh sound good?
All right?
Thanks a lot, John, The Nickson out the only thing
red hot. The heat is on once again up and
down the East Coast. The extreme weather has the Trump
Administration declaring a power emergency for the southeast. Duke Energy
asked for the emergency order with temperatures set to hit
up to one hundred one degrees in parts of the Carolinas.
The order allows power plans to run at maximum output
and go pass some air pollution limits to meet soaring
AC demand. It's an effect through tonight.
Well.
Turning to markets now, Alexis futures are moving higher as
details emerge about the draft US run deal. Stocks rallied
yesterday with all three indexes gaining at least one point
eight percent, and oil continues to drop on optimism the
war is nearing an end. West Texas Intermediate It's down
four point four percent trading Shive eighty four dollars a barrel.
Brent's well below ninety now at eighty six point fifty three.
That's the drop of four and a quarter percent, and.
Nathan shares of Adobe are down more than four and
a half percent here in early trading. The software company
is looking for new leadership. Adobe says chief financial officer
Dan Dern will leave the company next week. That adds
further executive turnover at the company after it's CEO said
in March he would step down once his successor had
been appointed. Time now for a look at some of
the other stories making news in New York and around
the world. For that, we're joined by Bloomberg's Michael bar
Good morning, Michael.
Good morning.
Alexis hot weather, as you mentioned, will settled over New
York and the US Northeast through the end of the week.
Bloomberg Media Religius Craig Allen has the latest.
The eastern two thirds of the nation will have to
endure another day of heat and oppressive humidity. Temperatures up
to fifteen to twenty degrees above average means nineties and
a heat index over one hundred for Washington to New
York City into New England, just Inland from the harbor
around Boston, and with FIFA World Cup Games and the
request to take mass transit, there is concern for Amtrak
and commuter trains because of heat on the tracks and
overhead power lines. Then a few strong thunderstorms to close
out today, followed by a brief reduction in temperature and
humidity for Saturday.
Bloomberg Media religious Greig Allen.
Security will be strict this weekend when Soccer's World Cup
matches start in the US. John Cohn, senior expert on
global threats for the ARGO National Laboratory, has some advice
for fans heading to the events.
I would dramatically reduce what you carry to these events.
Some of these events will have no bag policy, so
if you show up with a purse or a bag,
you may not be let in with that those items.
Expect long lines, expect road closures.
John Cohne with the Argo National Laboratory spoke to ABC.
President Donald Trump's board at the Kennedy Center is trying
to keep his name on the building before a court
ordered deadline to remove it by today. The board voted
Thursday to seek a stay of a judge's ruling that
Donald Trump's name was illegally added. Global News twenty four
hours a day and whenever you want it with Bloomberg
News Now Michael Barr and this is Bloomberg Alexis.
Well, thanks Michael. Time now for our Bloomberg Sports up,
and for that we bring in John stash Hour.
Game Foundlous Stanley Cup Final in Raleigh in Vegas scored first,
but Carolina scored the next four Andre Stetchikov scoring twice,
both on the power play. The Hurricanes beat the Golden
Knights four to two and lead the series three to two.
So history in the WNBA Indiana Beachicago with overtime at
Kate Laclark scored thirty two points with tennis sis, her
teammate of Leah Boston scored thirty four with twelve rebounds,
first time ever teammates with over thirty points and a
double double. Mexico and South Korea one in the World Cup.
That's a Bloomberg Sports update.
Stay with us.
More from Bloomberg Daybreak coming up after this.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app. This is Bloomberg Daybreak.
Good morning on Nathan Hager.
Markets are building on hopes for an interim peace deal
between the US and Iran, hours after President Trump threatened
to strike Tehran for a third straight day. But now
the President says a deal is close and for more.
We're joined from Dubai by Bloomberg Middle East correspondent Abir
Abu almar Abir. What do we know about this potential
interim deal? Good morning, Good morning, Nathan.
So look, yes, what you mentioned about President Trump saying
that a deal is as imminent as this weekend in Europe.
It will be signed with the presidence of Vice President JD. Vance. Now,
the market has reacted to that news because it was
filled with some positive at your sense of this time
around is different. But perhaps the market is reacting even
more positively to news that emerged about forty five minutes ago.
With Iran's semi official news agency Meyher, saying that the
negotiations or the potential agreement that is underway is being
reviewed and finalized by authorities into Ihran. So according to
this semi official news agency, Iran has issued a draft
with fourteen provisions. According to it, they're citing a person
that is closed to the negotiations, and those fourteen provisions
include some of the concessions that we've been talking about
over the past couple of months. That includes a permanent
and immediate station of hostilities on all fronts, including in Lebanon.
Remember Lebanon was a key sticking point for Iran. That
also includes a full lifting of the naval blockade within
thirty days, a US commitment to withdraw forces from areas
around Tehran, the unblocking of the twenty four billion dollars
of frozen assets, and the lifting of oil sanctions. The
report goes on to say that the final agreement, which
focus exclusively on the fate of the highly enriched uranium,
something that President Trump has been calling for, and sanctions relief,
as well as the reconstruction of Iran economically because of
the damage that it has suffered due to this war.
Now.
Just very important caveat here is that this is still
all subject to final approvals by the negotiating team the
Iranian government, and we're still waiting for some official statements
from people that we have monitored in the past as
official outlets for Iran, that includes the Foreign Minister, the
Speaker of the Parliament, and the president himself. But for
now we're seemingly getting these positive sentiment filled news from
the Iranian side. You're seeing Brent crude price is really
reacting to this report that just came out about again
forty minutes ago, down about five percent, I believe, just
above eighty dollars, levels we haven't seen in a while.
In terms of the parameters that have been laid out
in these semi official Iranian news reports, how do they
square with what we've been hearing on the US side
in terms of when the strait could reopen and what
happens with Iran's frozen assets.
Right, So that's the other caveat right. We also don't
know if this statement that came out from Meher is
in line with the MoU that President Trump passed outed yesterday.
So President Trump hassed out it yesterday that the MoU
that is underway that is imminent, according to him, will
address the reopening, the immediate reopening of the Strait of
Her Moves, and it will address Iran's nuclear program. Those
are the two things that he has mentioned. But according
to the statement that we're getting from Iran, it really
falls into Iran's favor because we're seeing that Iran is
saying that the negotiations for a final ceasefire or the
final deal are not going to go through until the
unblocking of half of the twenty four billion dollars in
frozen acids goes through, and so President Trump has opposed
that in the past. Iran Hawks and Washington have opposed
that in the past, adding pressure on President Trump. We're
also seeing the lifting of the oil sanctions, yet another
thing that Washington is opposed to. So this whole deal
seems to be playing very much into Iran's favor, and
that is why I added those caveats, because we're still
waiting to see what the US responds to this deal
is and whether it's in fact what they have been discussing,
or whether we're back to this back and forth rhetoric
between the warring parties. Israel Nathan, and I may add
is another sticking point here because Israel earlier this morning
said that it wasn't privy to the Molu that President
Trump had touted yesterday. And so Israel continues its incursion
in Lebanon, and so we're still getting some of that
conflicting or some of those conflicting statements from all parties
because Iran is saying all hostilities ending, including in Lebanon.
Israel continues its incursion in Lebanon. So we'll have to
wait and see if that is in fact addressed, and
that over the next twenty four to forty eight hours
and into Sunday. As you have mentioned the G seven
aspect there, those will be important hours for.
Us to watch.
I really appreciate you coming on to give us the
latest breaking details on this as we continue to watch
them emerge. That's Bloomberg Middle East correspondent Abir abu Omar
joining us this morning from Dubai. We want to turn
now to one of our other major top stories. It
is history Made on Wall Street. SpaceX is officially the
world's biggest initial public offering, raising seventy five billion dollars
on a one hundred and thirty five dollars a share,
more than a half a billion shares offered, putting Elon
Musk now on the verge of becoming the world's first trillionaire.
So many superlatives.
Dan Ives is Global head of Tech Research at Wedbush Securities.
Anyone that's owning SpaceX, you're buying it for the Musk factor,
and maybe that bet against Tessela and Musk going back
a decade ago.
That was I mean, that was proven historically wrong.
I was Whdbush analyst Dan Ives for more were joined
by Bloomberg News senior reporter Bailey Lipschultz, and it has
to be said, Bailey, so much of this really is
driven by the retail excitement around Elon Musk. Is that
really what's underpinning you know, just what I was talking about,
so many of the superlatives surrounding this spacexipl good morning, Good.
Morning, Nathan. I think that's a big driver.
And when you talk to folks around the company, there's
a view of SpaceX, much like Tesla, that the retail
investor understands these companies better, or at least is willing
to give Elon Musk more credit, more grace than most
institutional investors. But that's not to say that this wasn't
a deal that was heavily heavily bid up and chased
by institutions. We reported that a number of firms put
in orders for more than ten billion dollars worth of shares.
We put an put out news that Blackrock indicated an
interest of at least five billion dollars. Number of sovereign
wealth funds and pension funds also seemingly trying to get
their hands on as much as they could.
So it is a retail story.
Retail is a big component, but when you look at
a deal that comes together that raises seventy five billion dollars,
it's hard to do that without institutional investors.
So certainly a mix.
Of the two.
I think we'd I had some reporting as well that
there was more interest on the retail side than there
were even shares available. What does that mean for you know,
some of these mom and pops or even some of
the institutional investors who who could be left out in
the cold after this IPO.
There's a lot of excitement, and I think that was
a big question going into the pricing and throughout this
entire process. Somewhere between twenty and thirty percent of the
shares being sold to retail investors. What does that mean
called fifteen to twenty billion dollars of stock is taken
away from institutional investors. From the company's perspective, and Elon
has been a long kind of vocal supporter of retail,
that makes sense. Get your loyal investors some shares in
their accounts and let them want to chase more. From
the institutional side, it can be kind of upsetting because
maybe you put in an order that was quite large
and you're getting, you know, one tenth one twentieth of
what you thought you were going to get. So when
you look at kind of how this deal came together,
I think the big question is when we do see
the stock open up, how much excitement is coming from
retail to your perspective, your point, and how much is
coming from institutions. Because IPOs can be quite volatile. We've
seen that a number of times. Where this thing opens,
I think is really anyone's guests. So it's going to
be fascinating to watch, Well.
What are we expecting when it comes to these shares
coming to market when the market opens this morning. How
much volatility could we see around space AX a.
Lot of volatility.
I think that's a foregone conclusion just for folks who
have never traded an IPO.
It won't open at nine point thirty.
We'll start to probably get indications of where it could
open in the ten o'clock hour. This is a process
that is expected to take probably until one or two
o'clock before even the first trade takes place. So we
will see a number of headlines coming across the screen
of these indications. But the thing to keep in mind
that there are no shares trading at the indications. That's
simple where Nasdak and some of the other the bankers
are seeing and flashing potential demand, but you could see
potentially astronomical numbers that are going to make people jump
to foreground conclusions when it actually doesn't mean anything quite yet.
We heard from Dan Ives a few minutes ago saying
that historically, people who've bet against Elon Musk have been
left in the cold. We've also heard from short sellers
the likes of Jim Chenos saying that this IPO is
built on hopes and dreams. Can you sort of lay
out the bull and bear cases for this company?
Bailey boll case is quite simply, we have a colony
on Mars, and as Elon said in his interview with
Jamie Diamond, maybe there are hotels on the Moon, and
everyone who is using AI is likely a client in
some capacity from their data centers here on Earth Day
of the partnerships with Anthropic and Google, or using their
data centers that are in space, or are also using
Grock their own AI bot that would compete with Claude
and chat GPT. So the bull case is, there's a
lot of potential for this company.
There are a lot of hopes and dreams.
They laid out a total addressable market north of twenty
five trillion dollars, a lot of that driven by AI,
and that's the bullpitch. The barecase is it's a company
that is going public or sold chairs. I guess at
one point eight trillion dollar valuation, it's one of the
largest companies in the world. It does not generate a profit.
It lost a heck of a lot of money in
the first quarter. Elon Muskus says he wants compared the
company's ambitions to Union Pacific. Building out the railroad space
is very complex and if the company can't be successful
building out some of those ambitions.
That's the bullcap or bearcase. Excuse me.
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