US and Iran Reach Preliminary Deal; Dell Soars on Outlook

Bloomberg Audio Studios, podcasts, radio news.
Good morning.
I'm Karen Moscow and I'm Alexis Christophers. Here are the
stories we're following today, Alexis.
The US and Iran have reached a tentative agreement to
extend their ceasefire by sixty days. Sources a further talks
in Toron's nuclear program would continue during the extension period.
While the agreement has yet to be signed off by
President Trump, the news has raised hopes that the three
month conflict could be nearing a resolution. Vice President J D.
Vansteld reporters that progress is being made.
If you look at what we've already accomplished here, assuming
that we're able to get to a final agreement here,
we're reopening the straight before news. We've already decimated their
conventional military, and we're in a position where we could
substantially set back their nuclear program, not just during the
term of this president, but over the long term. That's
a very very good thing for the American vice people.
So we're not there yet, but we're very close. We're
going to keep on working at it.
Vice President and JD. Van says, Aran appears to be
negotiating in good faith and we get more on the
deal with the Bloomberg Middle eascoresponded Jumana Bersecci.
Certainly, we've been here before. There have been multiple reports
of the two side edgem closer and closer and closer
to deal, the reaction in the market becomes less pronounced.
I would say though, that this time does feel a
little bit different because you have so many Gulf our
of states also participating in the mediation attempts. And it
seems as though from the language of the likes of
the Treasury Secretary Scott Besson overnight jd Vance as well,
that this time we really are very very close.
Bloomberg Middle Eas corresponded. Jumana Broseecci says the proposal would
guarantee that shipping through the Strait of Horrormus remains unrestricted.
And Karen, that news has oil once again lower this morning.
Right now, we've got Brent trading at ninety three thirty
a barrel West Texas intermediate crude at eighty eight twenty five.
The barrel crude has weakened in May on speculation that
form of a piece deal would be reached between the
US and a RAM. Brent is down about nineteen percent
this month. That's its biggest monthly drop since twenty twenty.
Well Lex says we are following another developing story this morning.
Blue Origins New Glen rocket has exploded in a massive
fireball while undergoing a test on a Florida launch pad.
It's a major setback for the Jeff Bezos backed firm
in its efforts to challenge SpaceX. Benedict Camel is Bloombery's
managing editor for Space and Aviation.
No harm to human life, it should be said. So
this happened during sort of the fueling sequence they were
preparing for a launch in the next couple of days.
We've heard from Jeff Bezos, who's called it a very
rough day, but he's also vowed to rebuild whatever was broken.
He said it's worth it. It's a reminder that space
is hard and getting rockets up there are complicated and
things do go wrong.
And Bloomberg's Benedict Camel says the firm was preparing the
vehicle for its fourth launch, which was slated to deploy
a batch of satellites for Amazon's Leo, a rival network
two SpaceX's Starlink. None of the satellites were on the
rocket when it exploded.
And Karen Bloomberg News has learned SpaceX is cutting its
valuation goal in its impending IPO. John Tucker joins us
now with the very latest. Good morning, John, Good morning Alexis. Yeah,
it's a little more down to earth. Our sources tell
us the company now targeting evaluation of one point eight
trillion dollars. That's down from the two trillion the sources
told us about last month. This target settling lower after
consultations with advisors and investors. SpaceX is expected to start
formal marketing of its IPO as soon as June fourth.
At the price as early as June eleventh. Now, details
of an IPO like size and valuation are typically adjusted
ahead of the pricing based on feedback from stakeholders. The
company still seeking to raise as much as seventy five
billion dollars, which would make it the biggest IPO of
all time in New York Time, John Tucker, Bloomberg Radio, All.
Right, John, thanks Will Anthropics says it's raised sixty five
billion dollars in a funding round that now values the
company at nine hundred and sixty five billion including the
new investment. This valuation surpasses rival open AI's value for
the first time.
And we turned out to the markets where stocks begin
the last tridding day of the week at record highs.
In fact, the S and P five hundred is on
track for its ninth consecutive week of gains. Daryl Kronk
is chief Investment Officer of Wealth and Investment at Wells Fargo.
Last four years, you know, you've got earnings growth of
almost seventy percent and prices are up about seventy five percent.
So I do think if earnings can sustain here that
along with the M and A cycle. We know the
story on CAPEX, we know what's coming in front of
us in IPOs later this summer and into the fall.
There's a lot of things that are triggering some pretty
good signs here on the intermediate term.
Wells Fargo's Daryl Kronk. During this nine week rally, the
S and P five hundred has gained nineteen percent.
Well Lex Say shares a Dell are storing to an
all time high this morning, the stock of thirty eight percent.
In early trading, the hardware maker gave an outlook for
annual sales that far surpassed analyst estimates. It's being fueled
by demand for servers that power artificial intelligence work. Brody
Ford covers Dell for Bloomberg.
Well, it's all about these servers, right. I think when
some of us think about AI revenue, we think about
people selling large language models. But it's a lot more
than that, right, I mean, somebody needs to build those
servers that go into data centers to train all those
models and deploy all the applications. And Dell a lot
of us think of as the kind of boring laptops
and computers, but they've managed to really reinvent themselves as
physical infrastructure provider for the AI boom. And so you know,
we're seeing some pretty comical revenue ramp here.
And Lumber's bertie Ford notes that ahead of this morning,
Sarge shares of Dell we're already up more than one
hundred and fifty percent this year.
Well, on the flip side of that, Karen, we've got
shares of Gap down about fifteen percent here. In early trading,
the retailer lowered its sales outlook due to struggles with
its product mix. Gaps brands include its namesake as well
as Banana Republic, Old Navy and its ath leisure chain Athleta.
Ale says retailer Costco is reported higher than expected profit
in the latest quarter, showing the club chain continues to
gain ground among cautious US shoppers. Costco has picked up
market share in recent years by offering competitive prices and
large pack sizes. Gasoline frequently priced lower at Costco than
at competitors, is another advantage as consumers look to cushion
a global surge and fuel costs.
And Disney has complied with the Federal Communication Commissions ordered
to file for early license renewals for its eight owned
and operated ABC broadcast stations, but call the demand unconstitutional.
The licenses had been set to expire in twenty thirty one.
The FCC said last month it was going to seek
early reviews of the station licenses due to concerns about
Disney's diversity and inclusion programs. Disney says the FCC is
a targeting ABC to suppress speech and content that the
administration finds objectionable. The stations involved are mostly in big
market such as WABC here in New York and KABC
in Los Angeles. Five A wait on Wall Street 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 Barr. Good Morning, Michael, Good Morning.
Alexis. Kenyan High Court has temporarily blocked the government from
approving a deal with the US to establish an abola
quarantine facility in the East African nation. Parties will make
oral arguments before the judge on June second. The Trump
administration is working to get a fifty bed temporary facility
in Kenya to quarantine any Americans exposed to abola. Former
White House COVID nineteen response coordinator doctor ashish Ja calls
the Kenya operation a huge mistake.
I actually worry what's going to happen is we're going
to be volunteers there who might have an exposure, who
are going to be tempted to not acknowledge it because
they know if they do, they're going to be stuck
in some camp in Kenya, and they're going to take
their chances to come back to America. And this will
increase the likelihood that we're going to see a bowler
in the US.
Paradoxically, Doctor John also says the cuts in USAID have
definitely made a difference. More than two hundred people have
died of a bowler in the Democratic Republic of Congo.
An explosion and fire at a Dallas apartment building killed
a child and at least two other people. At least
five people suffered injuries. Firefighters have been searching the scene
by hand, and some areas would require excavation. Deputy Fire
Chief Mark Berry.
We have gone from rescue mode to recovery mode.
We are still actively in recovery mode.
Deputy Fire Chief Mark Berry says his department responded to
a report of a gas league at the complex. Martina McBride,
Morris Day, the Commodorees, and Young mc have all announced
they will not perform at the Great American State Fair
on Washington's National President Trump launched Freedom two fifty last
year to celebrate the nation's two hundred and fiftieth birthday.
Global news twenty four hours a day and whenever you
want it with Bloomberg News Now. I'm Michael Barr, and
this is Bloomberg.
Thanks Michael, time now for our Bloomberg Sports update, and
for that we bring in John Stashauer.
Thanks daring Game six in the NBA's Western Conference Finals
and in San Antonio. The Spurs never trail. They had
a twenty to nothing run in the third quarter. They
blew out the Thunder one to eighteen to ninety one.
The series is going to a game seven tomorrow night
at Oklahoma City. Third round starts today at the French Open.
Among those in action Novak Djokovic. He's thirty nine years old,
but this may be his best chance to win his
twenty fifth career Grand Slam because Carlos Elcarez isn't playing.
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And sources tale Bloomberg the US and I run have
reached a preliminary deal to extend a ceasefire by sixty
days and discuss the future of Turan's nuclear program. Treasury
Secretaries god Best and spoke to reporters from the White
House press room yesterday.
President Trump has made it very clear he talked about
it at the cabinet meeting that he has several red
vines and Iran has to turn over their highly enriched
uranium they cannot pursue a nuclear.
Weapon, and Treasury Secretary Scott Besson also mentioning the reopening
of the Strait of horror moves and for more. We're
joined by a Bloomberg Middle East correspondent, an anchor of
Bloomberg Horizons, Jumana Bursecchi Jumana, Good morning. What do we
know about this deal and where it stands?
Yeah, that's right, so Bloomberg. Our Bloomberg colleagues, alongside other
news outlets. Outlet's actios included, have suggested that the two
sides have papered over enough differences to reach an interim agreement.
This would be a memorandum of Understanding and MoU that
would entail a sixty day intention extension to the ceasefire,
during which the first thirty days Iran would commit to
an unconditional reopening of the strait, a d mining of
the strait in exchange for some form of economic relief.
And that is a big sticking point because we just
don't know yet what sort of sanctions relief or unfreezing
of assets that the US are willing to offer over
that timeframe. But then over the course of that sixty days,
the two sides would also move on to a more
formal negotiation process around the nuclear file. And as you
just played in the introduction there Treasury Secretary Pasant reiterating
what Trump's red lines are there and that Iran have
to commit to not pursuing a nuclear weapon and also
in turn have to commit to somehow disposing or destroying
or handing over diluting their stock of highly enriched uranium.
So are there any early indications that this is being
well received by President Trump and Iran?
Well, I think President Trump has to make the decision.
Here in our own reporting we also cite that the
President Trump has to sign off on this deal. The
mood music coming out from both sides, it's certainly very positive.
But at the same time, you know Jdvan saying that
there are still some significant nuclear hurdles that need to
be overcome, the Iranian President Masut Pezishkyhan saying that they
are committed to the diplomatic process. So, in all likelihood,
what's going to happen if we do get a breakthrough
is we will get this one page memorandum. I remember,
this isn't a fully fledged, comprehensive piece deal. We're just
going to get a piece of paper that would commit
to an extension of the ceasefire, and then the thornier
and more prolonged discussions around the nuclear file will begin.
And remember around the JCPOA, around the Obama time, it
took almost two years to get a nuclear deal across
the lines. So that is what perhaps we may be
in for. But as far as markets are concerned, any
talk about an eminent reopening of the straits would be
perceived to be very constructive. Obviously.
And just quickly here, I have to ask you about Israel,
because it's been stepping up its attacks on Lebanon. So
how does Israel play into this?
Yes, well, on one hand, the Israeli Prime Minister says
he's in constant dialogue with President Trump, and Iran had
been trying to weave back in the Lebanon story into
the bigger file. So that was also one of the
earlier sticking points that we mentioned this week. We'll see
whether Lebanon does have a mention on the ceasefire. The
White House has maintained a position that the two files
are separate, and even today, even as we speak about
the idea of ongoing strikes in Beirut, there's still military
discussions taking place within the State Department about the future
of Lebanon. So separate tracks for now.
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