S&P 500 Nears Record High; OpenAI in $30B Funding Talks with UAE, BlackRock

Author: Bloomberg Television · Watch on YouTube

Video authored by the channel shown, not by IANIA; all rights belong to the creator. Transcript and summary generated automatically; the original-language content is preserved.

Original language: English

Original video: S&P 500 Nears Record High; OpenAI in $30B Funding Talks with UAE, BlackRock · Channel: Bloomberg Television · 43:08 · Watch on YouTube

Topics: AI infrastructure and hardware, Markets and economy

Summary

Global stocks rose toward record levels as investors remained optimistic about AI and the approaching earnings season, while Treasury yields stabilized and oil prices eased. OpenAI was reported to be discussing a $30 billion funding round involving BlackRock and UAE funds, while DeepSeek and other Chinese AI companies were also pursuing large fundraises. Guests discussed risks from government borrowing, high bond yields, fiscal deficits and potential spillovers from France. The program also covered fighting in Yemen, U.S. policy on red-dye diesel, corporate deals and the growing electricity needs of AI.

Key points

Asian and European stocks advanced, and U.S. futures pointed higher after the Nasdaq reached a record and the S&P 500 moved closer to one.
Investors rotated away from some major chipmakers and toward equipment makers, while optimism about AI and digital transformation continued to support markets.
OpenAI was reportedly in talks with BlackRock and UAE funds as part of a potential $30 billion financing round that could value the company at about $1.4 trillion.
DeepSeek was reported to be seeking at least $12 billion, while Hong Kong-based Moonshot AI was said to have raised funds at a valuation near $50 billion and to be targeting a 2027 IPO.
Ray Dalio warned that rising U.S. borrowing and a potential reduction in foreign demand for Treasuries could put pressure on asset prices and interest rates.
Allspring’s Henrietta Pacquement cited energy prices, fiscal deficits, and supply and issuance as key drivers of bond markets; she said investors were seeking opportunities while managing risk.
Fighting between the Saudi-led coalition and Iran-backed Houthis intensified in Yemen, with competing claims about territory and attacks that were difficult to verify.
McKesson and a private equity firm were reportedly near a bid for Option Care Health, while Alphabet was reported to be close to a nuclear-power deal with Constellation Energy.
A Bloomberg strategist said AI investment is increasingly constrained by electricity availability, with nuclear power viewed as one possible solution.
President Trump signed an executive order easing restrictions on tax-exempt red-dye diesel in an effort to address fuel costs.

Chapters

Start	Chapter	Summary
00:13	Global market setup and Asian trading	The program opens with global market headlines, then reports on Asian equities, bond moves, the Japanese yen and regional investor rotation.
01:52	European markets, oil and U.S. premarket movers	European stocks rebound as French yields ease, while the show reviews oil, Treasury yields and moves in Option Care Health, Constellation Energy and Nike.
05:08	Risk appetite and Treasury concerns	Paul Allen discusses the market’s steady gains, optimism about AI and fundraising, and Ray Dalio’s concerns about U.S. debt and foreign Treasury demand.
08:30	OpenAI and Chinese AI funding	Bloomberg reports on a potential $30 billion OpenAI funding round and fundraising plans involving DeepSeek and Moonshot AI.
11:46	Yemen conflict and other headlines	A reporter describes intensifying Yemen fighting and the difficulty of verifying territorial claims, followed by brief business and AI headlines.
14:59	Ray Dalio on debt, rates and inequality	Dalio discusses how borrowing needs and capital supply could affect interest rates, which sectors may be squeezed, and the fiscal challenges facing France.
18:44	Front-page news and market outlook	The show covers French student protests, a reversal over taxpayer-funded ads, corporate borrowing costs and the latest market moves.
21:32	Markets and bond-market drivers	The program reviews stocks, yields, oil and gas before Henrietta Pacquement discusses fiscal deficits, issuance and elevated bond yields.
24:49	Fixed-income strategy and credit opportunities	Pacquement explains portfolio risk budgeting, opportunities in credit and international markets, and her cautious approach to French sovereign debt.
32:53	IPO underwriting, bonuses and diesel policy	The program reports on Moonshot AI, IPO underwriting and Wall Street bonuses, then examines Trump’s order easing restrictions on red-dye diesel.
35:03	U.S. policy and political issues	A reporter discusses the expected impact of the diesel measure, the administration’s debt plans, and reports about U.S. bombers returning from the U.K.
38:11	AI funding and power demand	A Bloomberg strategist discusses sovereign investment in AI, Chinese fundraising, and how electricity and nuclear power may shape the sector.
42:02	Today’s schedule and closing market check	The program previews Federal Reserve remarks and a Jamie Dimon interview, then closes with premarket movers and the day’s market picture.

Quotes

This latest round, a total of about $30 billion is our understanding — 09:02

you have to have the price of it go up until you ration that demand. — 16:31

Those are the three big ones. — 25:21

that really reflects the scale of the investment, but also the stakes involved. — 39:20

the AI bottleneck is increasingly moving away from chips to electricity. — 41:31

Concepts and entities

S&P 500, OpenAI, DeepSeek, BlackRock, Ray Dalio, Henrietta Pacquement, Allspring, Constellation Energy, Juros dos títulos do Tesouro dos EUA, energia nuclear

Full transcript (original language)

00:13 >> 5:00 A.M. IN NEW YORK CITY, 10:00 A.M. IN LONDON. IT’S GET YOU SET UP FOR THE DAY. LEVEL STOCKS IN YOUR RECORDS. THE TREASURY STABILIZING SOMEWHAT. THE LATEST WAVE OF MULTIBILLION-DOLLAR FUNDING IN THE AI SECTOR WITH OPENAI AND DEEPSEEK IN THE SPOTLIGHT. AND YEMEN’S GOVERNMENT CLAIMED TO HAVE REGAINED TERRITORY AFTER BATTLES WITH THE HOUTHIS. LET’S GET A CHECK ON MARKETS AROUND THE WORLD NOW. FIRST OFF, WINNIE HSU HAS THE LATEST FROM ASIA. WINNIE: WE ARE SEEING ASIAN STOCKS

00:47 EDGING HIGHER TODAY AS OIL PRICES FALL LOWER. WHEN IT COMES TO THE STOCKS PICTURE ACTUALLY, A BIT OF A MIX BECAUSE INTERESTINGLY, WE ARE SEEING INVESTORS ROTATING AWAY FROM SOME OF THESE BIG CHIPMAKERS AND INTO THE EQUIPMENT MAKER’S. PERHAPS THAT IS WHY YOU ARE SEEING THE KOSPI DOWN NEARLY 1% AFTER RETURNING FROM A HOLIDAY, WHILE JAPAN’S MOLLEO 225 LEADING GAINS TODAY.

01:18 WE ARE SEEING ASIAN BONDS TRACKING LOSSES IN THE U.S. TREASURIES OVERNIGHT BUT INTERESTINGLY, WE ALSO HAD EARLIER TODAY THE JGB 10 YEAR BOND AUCTION SEEMING PRETTY SOLID DEMAND, TOPPING 3% BEING SEEN AS QUITE ATTRACTIVE FOR BUYERS. THE JAPANESE YEN WEAKENED A LITTLE BIT AGAINST THE DOLLAR TODAY GIVEN THAT WE HAVEN’T HEARD MUCH WHEN IT COMES TO GPI PORTFOLIO ALLOCATION IN THEIR MEETING LAST MONTH, SO THAT IS PERHAPS TRIMMING SOME BETS WHEN

01:52 IT COMES TO THE PENSION FUND ACTUALLY BUYING MORE OF THESE DOMESTIC ASSETS. VONNIE: THANK YOU SO MUCH, THAT IS WINNIE HSU WITH THE LATEST FROM ASIA. THAT’S TAKE A LOOK AT EUROPE WHERE WE ARE SEEING A REBOUND ACROSS THE BOARD. EVERYTHING IS DOING WELL IN EUROPE RIGHT NOW, PARTICULARLY HEALTH-CARE UTILITIES AND THE BANKS. THE STOXX 600 UP 9/10 OF 1%. A LITTLE BIT OF CATCH-UP TO YESTERDAY’S RALLY AS WELL. SOME STABILIZATION IN FRANCE, WE JUST GOT THE BUDGET FOR MARINE LE PEN. THE MARKET DOES NOT SEEM TO BE TAKING THAT TO SERIOUSLY. SHE SAYS THE BUDGET DEFICIT

02:26 WILL BE AT 3% BY 2022 IF IT FOLLOWS HER PLAN. NONETHELESS WE ARE SEEING STABILIZATION WITH A 10 YEAR YIELD DOWN 12 BASIS POINTS TODAY. AND WE HAVE THE EURO JUST EVER SO SLIGHTLY STRONGER TODAY AT 112.44. THE BUDGET DEBATE DOESN’T BEGIN UNTIL NEXT WEEK, SO PERHAPS THE MARKET FEELS IT HAS GONE A LITTLE TOO FAR TOO FAST. LET’S TAKE A LOOK AT OIL BECAUSE THIS IDEA THAT PERHAPS THE YEMENI GOVERNMENT IS BRITAIN INROADS VS.

02:59 THE HOUTHIS MAY BE BRINGING SOME RELIEF TO THIS MARKET AND NEW YORK CRUDE IS WELL BELOW THAT. UP ABOUT 4/10 OF 1%. BITCOIN AS WELL, FOR WHAT IT’S WORTH. WE ARE SEEING STABILIZATION PARTICULARLY IN THE BELLY AND THE LONG END. FIRST OF ALL, FUTURES POINTED HIGHER AFTER YESTERDAY’S NICE GAINS. THE NASDAQ ACTUALLY REACHED A RECORD. DID HAD ITS FIRST RECORD AS WELL SINCE MAY, AND THAT ALSO HELP THE S&P 500 AS WELL.

03:31 IN FACT, A 2% EQUAL WEIGHT S&P HAS RISEN FOR THREE STRAIGHT DAYS. BACK THIS TREASURIES, WE DO HAVE AUCTIONS AND TREASURIES. AS YOU CAN SEE, THE LONG END DOWN ABOUT THREE BASIS POINTS APIECE, WHAT WE ARE STILL PRETTY ELEVATED. THAT TWO YEAR YIELD ISN’T GOING ANYWHERE. LET’S GET TO SOME INDIVIDUAL PREMARKET MOVERS NOW. JUSTINA: GOOD MORNING, VONNIE. WE HAD A SPATE F DEALNEWS YESTERDAY AND WE CAN ADD TO THAT OPTION CARE HEALTH REPORTING THAT MCKESSON ALONG

04:04 WITH THE PRIVATE EQUITY FIRM IS GOING TO BID FOR THE COMPANY AT ABOUT $5 BILLION AND WE CAN SEE HERE THE INFUSION SERVICES CARE COMPANY IS UP 22% IN PREMARKET TRADING TODAY. NEXT UP, CONSTELLATION ENERGY PURCHASING ITS NUCLEAR ENERGY. TODAY IS GOOGLE WITH ELF ABOUT ALSO REACHING A DEAL OF ABOUT $1 BILLION TO PURCHASE NUCLEAR ENERGY FROM THIS COMPANY. OF COURSE AGAIN, IT IS ALL ABOUT HAVING THAT SOURCE OF

04:37 ENERGY TO POWER A LOT OF THAT AI BOOM. LASTLY, MORE BAD NEWS FOR NIKE WHICH IS ALREADY ON ITS WORST YEAR ON RECORD. FURTHER DOWNGRADING THE COMPANY TO A SELL, SAYING THERE COULD BE ANOTHER DOWNSIDE. THE ALL KNOW THAT THE SPORTSWEAR COMPANY IS STILL STRUGGLING WITH INCREASING COMPETITION, ITS POSITION IN THAT MARKET AND OF COURSE, CHINA. WE CAN SEE FURTHER DECLINES FOR NIKE TODAY. VONNIE: THE BAD NEWS JUST KEEPS COMING. THANK YOU SO MUCH.

05:08 COMING AT THIS HOUR, PEOPLE SPEAK WITH HENRIETTA PACQUEMENT. LET’S TAKE OFF OF GLOBAL STOCKS. EVEN IN THE FACE OF WARNINGS ABOUT THE TREASURY MARKET, WARNINGS ABOUT THE DEBT, WARNINGS ABOUT THE BID TURBINES, – ABOUT THE MIDTERMS, WE HAVE STOCKS CLAMORING HIGHER. WHAT IS GOING ON? PAUL: GOOD MORNING, VONNIE. CLIMBING HIGHER IS ABOUT RIGHT.

05:44 IT IS NOT BOOMING HIGHER OR ANYTHING, BUT THE STEADY GAINS CONTINUE TO LIFT THE MARKET MOSTLY DRIVEN BY BELIEF IN THE AI IN THE DIGITAL TRANSFORMATION TRADE. PEOPLE ARE GETTING THEIR HOPES UP BEFORE THE EARNINGS SEASON. OF COURSE, THAT’S WHAT THEY’VE BEEN WAITING FOR FOR QUITE A WHILE NOW TO SEE WHETHER WE ARE GOING TO CONTINUE TO GET THOSE VERY UPBEAT FORECASTS IN TERMS OF REVENUE AND PROFIT GROWTH. HOW THAT IS GOING TO FEED INTO THE INSPIRE STACK.

06:18 WHAT WE HEARD IN ASIA, AN EXTRAORDINARY AMOUNT OF IPO AND FUNDRAISING ACTIVITY PLANS GOING ON, ALL THE WAY FROM CHINESE TECH STACKS THE SINGAPOREAN DATA CENTERS AND BEYOND. STILL CONFIDENCE IN GOING TO THE MARKET TO RAISE MONEY FOR THE AI TRADE. INVESTORS STILL WILLING TO BUY EVEN AT THE LEVELS. WE HAVE SEEN VALUATIONS COME DOWN BECAUSE PROJECTIONS CONTINUE TO RISE EVEN THOUGH THE STACK MARKET HAS KIND OF FLAT LINED A WHILE NOW. RIGHT NOW THE MARKET SEEMS TO

06:51 HAVE HAD A LITTLE MORE CONFIDENT IN THAT RISK ON TRADE. VONNIE: PAUL, RAY DALIO HAS A LONG-STANDING RELATIONSHIP OF CHINA AND IS WARNING THAT CHINA AND JAPAN MAY MOVE BACK FROM TREASURIES. HAVE SERIOUSLY SHOULD BE TAKE THIS MORNING? PAUL: HE HAS WRITTEN A BIT RECENTLY ON HOW COUNTRIES GO BROKE AND HE WAS HERE IN SINGAPORE EARLIER TALKING WITH MY COLLEAGUE ABOUT WHY HE SEES THE U.S. IN A DIFFICULT SITUATION READ

07:23 OUT – RIGHT NOW. THE U.S. IS SPENDING MORE, BORROWING MORE THAN IT IS BRINGING IN WITH REVENUE SO THAT IS GROWING AT THE MOMENT. THAT CAN BECOME UNSUSTAINABLE AT HIS CONCERN IS THAT IS THE CASE, PARTICULARLY WHEN YOU GET INTO THESE SITUATIONS WHERE THERE IS POLITICAL RISK ENTWINED WITH IT. SO IF CHINA DOESN’T REALLY WANT TO CONTINUE TO ACCUMULATE U.S. ASSETS, IT’S GOING TO HAVE TO FIND OTHER BUYERS FOR THOSE TREASURIES FOR SOME RESTRICTIVE MEANS OF THE BUDGET. WE HEARD FROM SCOTT BESSENT OVERNIGHT TALKING TO THE IDEA

07:58 THAT THE U.S. CAN CARRY ON TO BRING IN A LITTLE BIT MORE AUSTERITY AS WELL. HASN’T BEEN THE CASE SO FAR BUT WE STABILIZE IN THE MID-FIVES, OR DO WE CARRY ON GOING HIGHER FROM HERE? VONNIE: PAUL, THANK YOU SO MUCH. OPENAI IS SAID TO BE IN TOXIC BLACKROCK AND MULTIPLY UAE

08:30 FUNDS. SOURCES TELL BLOOMBERG TO FUNDS COULD PUT IT AS MUCH AS $10 BILLION. LET’S BRING IN BLOOMBERG TECH ANCHOR TOM MACKENZIE WHO IS AT THE TECH CONFERENCE IN LONDON. WE WILL BE HEARING FROM HIM A LITTLE BIT LATER FROM THERE. ON TECH RIGHT NOW, THIS IDEA THAT WAR MONEY IS GOING TO OPENAI EVEN AS WE AWAIT AN IPO. WHAT ARE THEY GOING TO DO WITH THE NEXT ROUND OF FUNDING? TOM: AND FURTHER EVIDENCE THAT INVESTORS ARE STILL LINING UP

09:02 TO PUT MONEY TO WORK IN THESE FRONTIER LABS, AND TODAY THE FOCUS ON OPENAI THAT THEY HAVE INDEED BEEN IN THESE CONVERSATIONS. YOU MENTIONED THAT $10 BILLION NUMBER, POTENTIALLY THAT IS COMING FROM FUNDS INCLUDING MGX OVER IN THE MIDDLE EAST, BASED IN THE UAE WITH BLACKROCK PLAYING A ROLE AS WELL AS PUBLIC THE SYNDICATED FUNDRAISING. THIS LATEST ROUND, A TOTAL OF ABOUT $30 BILLION IS OUR UNDERSTANDING WHICH WOULD PUT THE MARKET VALUATION AT AROUND $1.4 TRILLION U.S. FOR OPENAI. THAT COMPARES TO ABOUT $852

09:37 BILLION BACK IN MARCH. THIS IS A REMINDER THAT THIS IS A COMPANY DESPITE ALL OF THE CHALLENGES AND FOCUS ON RISKS AND THE FACT THAT SOME OF THE MODELS HAVE BEEN CALLED MEDDLING WITH U.S. WEBSITES, IT IS STILL ABLE TO RAISE CAPITAL AND PACE. IF THEY SECURE THIS FUNDRAISING TO TIDE THEM OVER AT LEAST IN TO THE IPO.

10:09 >> OPENAI LOOKING TO RAISE $30 BILLION BUT DEEPSEEK IS LOOKING TO RAISE $12 BILLION WHICH WHEN YOU THINK ABOUT IT, IT IS AN EARLIER FUNDING ROUND, SO IT IS QUITE A CHUNK OF CHANGE. HUGE COMPANIES WILL BE PARTICIPATING IN THIS ACCORDING TO OUR REPORTING. WHAT IS DEEPSEEK GOING TO DO WITH THE CASH? PAUL: TOM: WITHIN THE CONTEXT OF CHINA, THAT $1 BILLION IS NOTABLE IN TERMS OF THE NUMBER COMING

10:41 THROUGH FOR DEEPSEEK. THEY WERE OVERSUBSCRIBED, SO THEY ARE ABLE TO RAISE A LOT MORE THAN MAYBE EVEN THE COMPANY THEMSELVES WERE TARGETING. ALSO WITHIN THE CONTEXT OF THE COMPANY, REALLY A FRONTIER IN CHINA IN TERMS OF PRODUCING THESE VERY CHEAP MODELS AND WITH A PLAN POTENTIALLY TO LIST AN IPO IN 2027 IN HONG KONG. WE ALSO GET NEWS FROM OUR TEAM OVER IN ASIA THAT MOONSHOT, THE MAKER OF MANY PARTS OF THE AI ECOSYSTEM, THEY ARE LOOKING TO RAISE EVALUATION OF ABOUT $50

11:16 BILLION, ALSO WITH AN EYE ON AN IPO. SO AGAIN, IT IS A REMINDER THAT THIS CAPITAL RAISING ISN’T JUST HAPPENING FOR THE FRONTIER LABS IN THE U.S., BUT ALSO THOSE COMPANIES AT THE FOREFRONT OF CHINA’S PUSH TO CLOSE THE GAP WITH THE U.S. THE ABILITY TO FUND RAISE IN CHINA IS ALSO VERY MUCH THERE. VONNIE: AS MUCH ANTICIPATION IN HONG

11:46 KONG AS THERE IS HERE. TOM, THANK YOU SO MUCH. THAT TAKES PLACE AT 9:00 P.M. NEW YORK TIME, 2:00 P.M. LONDON TIME. TURNING TO THE MIDDLE EAST NOW, YEMEN SAYS IT HAS REGAINED CONTROL OF THE RED SEA CITY AFTER VIOLENT BATTLES WITH IRAN-BACKED HOUTHIS. PAUL, SET THE SCENE FOR US, GIVE US AN IDEA WHAT THE FORCES HAD TO DO IN ORDER TO BEST THAT HOUTHIS.

12:20 >> WELL, THE SAUDI-LED COALITION FORCES ARE CLAIMING TO MAKE PRETTY SIGNIFICANT ADVANCES IN THE LAST 48 HOURS. THEY ANNOUNCED AN OFFENSIVE TO RECAPTURE TERRITORY TAKEN SINCE EARLY SEPTEMBER AND CERTAIN CITY THAT THE HOUTHIS TOOK AND THE SAUDI-LED COALITION IS SAYING IT IS BACK IN THEIR HANDS NOW. ALL THESE CLAIMS ARE VERY HARD

12:52 TO VERIFY AT THE MOMENT. WE SHOULD SAY THAT THE HOUTHIS ARE AT THE SAME TIME FIRING PRETTY REGULARLY NOW AND THEY CLAIM TO HAVE TARGETED A SITE IN RIYADH LAST NIGHT, THE SAUDI GOVERNMENT ONLY ABOUT TWO HOURS AGO ANNOUNCED THAT THE AIRPORTS IN THE CITIES WHICH SIT QUITE CLOSE TO THE BORDER WERE ACTUALLY HIT BY HOUTHI PROJECTILES, SO FIGHTING

13:23 IS INTENSIFYING. I THINK FOR THE COALITION, EVEN IF THEY MANAGED TO HOLD THE GROUND THEY TAKEN IN THE LAST DAY OR TWO, IT’S GOING TO BE A PROBLEM FOR THEM TO ADVANCE FURTHER. THEY’VE GOT QUITE LOFTY GOALS, THEY SAY THEY WANT TO ACTUALLY ELIMINATE THE HOUTHIS, AND THENCE GOING TO BE VERY DIFFICULT FOR THEM GIVEN HOW ENTRENCHED THEY ARE IN PLACES LIKE THE YEMENI CAPITAL AND A KEY PORT ON THE RED SEA. I THINK WE ARE GOING TO SEE FIGHTING CONTINUE IN QUITE AN INTENSE WAY FOR AT LEAST THE

13:55 NEXT SEVERAL DAYS IF NOT SEVERAL WEEKS. VONNIE: THANK YOU VERY MUCH FOR BRINGING US UP TO SPEED. OTHER TOP STORIES, RETAIL AI HAS CLOSED IPO AT ABOUT $50 BILLION. THE HONG KONG-BASED COMPANY IS HEADING TOWARD AN IPO IN THE FIRST QUARTER OF 2027. CITIGROUP TAKING THE TOP SPOT FOR UNDERWRITING AND GLOBAL IPO’S. ACCORDING TO DATA, CITI IS JUST

14:28 AHEAD OF GOLDMAN SACHS. OPENAI IS ATTENDING A HEARING ON AI, REITERATING ITS APOLOGY AFTERWARDS AI MODELS BREACHED AUSTRALIAN GOVERNMENT WEBSITES. OPENAI IS ALSO PLEDGING TO WORK ON PREVENTING SIMILAR INCIDENTS IN RESPONDING FASTER IF IT HAPPENS AGAIN. THIS IS BLOOMBERG. VONNIE: THIS IS “BLOOMBERG BRIEF.”

14:59 AS THE SELLOFF IN GOVERNMENT BONDS DRIVES UP BORROWING, RAY DALIO, FOUNDER OF BRIDGEWATER ASSOCIATES SPOKE TO BLOOMBERG ABOUT A POTENTIAL U.S. DEBT CRISIS. >> WITHIN THE NEXT THREE YEARS , WHAT WE HAVE IS THAT ISSUE OF THAT SQUEEZING IT OUT. SO WHEN YOU TAKE A LOOK AT LITERALLY WHAT THAT MEANS AND THEN WHAT THE IMPACT OF THAT IS

15:30 GOING TO BE ON ASSET PRICES AND INTEREST RATES MATTER. SO YOU HAVE A BOOM WHICH IS CONCENTRATED IN ONE AREA THAT IS HEAVILY DEBT-FINANCED. DIGGING USED TO BE, BUT YOU CAN SEE AS THAT THAT CYCLE HAPPENS AND WHAT HAPPENS IS INCREASINGLY WHERE IT USED TO BE EQUITY, NOW YOU HAVE TO GO TO DEBT AND THAT PLAYS A BIGGER ROLE. >> YOU’VE GOT TO WONDER IF 6% IS JUST A PSYCHOLOGICAL LEVEL.

16:00 WOULD 6%. A LOT OF MACROECONOMIC RISK? HOW MIGHT THAT PLAY OUT AND IS SIX ACTUALLY THE CEILING, MIGHT WE SEE 6.5? >> I THINK YOU DON’T LOOK AT THE INTEREST RATE, BUT WHAT I MEAN IS YOU LOOK AT WHAT IS THE AMOUNT OF SAVINGS. WHAT IS THE TOTAL AMOUNT OF CAPITAL AND WHAT IS THE DEMAND FOR CAPITAL? AND WHEN YOU GET THAT IN

16:31 BALANCE, THAT SUPPLY-DEMAND IMBALANCE, THEN YOU HAVE TO HAVE THE PRICE OF IT GO UP UNTIL YOU RATION THAT DEMAND. SO YOU HAVE TO ASK YOURSELF WHAT IS IT THAT IS GOING TO BE RATIONED? AND SO THEN WE ARE DEALING WITH IT’S NOT GOING TO BE GOVERNMENT DEFICITS BECAUSE THEY ARE ELASTIC. IN OTHER WORDS, IN FACT, IF YOU HAD A WORST ECONOMY, THAT WOULD INCREASE. SO THEN YOU FIND OUT WHAT OTHER SECTORS THAT ARE SQUEEZED OUT? IS IT HOUSING? BUT THAT SUCH A LARGE

17:06 DIFFERENCE IN FINANCIAL CONDITIONS OF THE WEALTHY AND THE POOR, YOU ARE GOING TO SEE THAT HAPPENING MORE AT THE LOWER END OF THAT SPECTRUM. IS IT AUTO LOANS, IS IT THOSE KINDS OF LOANS THEN GET SQUEEZED OUT FIRST? SOMETHING LIKE DATA CENTERS COME LATER. SO THAT IS WHY YOU START TO HAVE MORE OF A WEALTH CONFLICT. BECAUSE THEN THE PEOPLE WHO HAVE LESS GET SQUEEZED THE MOST IN THAT PART OF THE CYCLE. >> TAKE A LOOK AT EUROPE. FRANCE, IN PARTICULAR.

17:42 WE SAW THE MASSIVE SELLOFF AND SOME ARE CONCERNED THAT WE COULD SEE CONTAGION RISKS ON THE BACK OF THAT. DO YOU SEE THAT HAPPENING? >> THE EUROPEAN SITUATION IS THE SAME. BECAUSE THERE IS A LACK OF ADEQUATE – IMAGINE IN EUROPE AND MOST PARTS OF THE UNITED STATES, YOU’VE LIVED ON THE MARBLE. THEN WHEN YOU REACH YOUR BORROWING LIMIT AS FRANCE HAS DONE, THERE IS A BIND BECAUSE THEN YOU CANNOT CONTINUE TO ADD

18:14 TO THAT. YOU HAVE TO START TO RUN BUDGET DEFICITS BECAUSE YOU ALMOST TO GET TO THE POINT WHERE YOU HAVE TO PAY BACK. IN OTHER WORDS IF YOU BORROW, YOU HAVE TO PAY BACK. AND WHEN THAT HAPPENS, YOU HAVE A SITUATION VERY SIMILAR TO THAT. SO NOW YOU’VE SEEN A DESIRE FOR GREATER TAXATION. YOU SEE PEOPLE LEAVE. YOU SEE WHETHER THEY ARE FROM FRANCE OR FROM PARTS OF THE UNITED STATES, THEY LEAVE. AND THEN THAT CREATES A PROBLEM. VONNIE: THAT WAS RAY DALIO OF

18:44 BRIDGEWATER ASSOCIATES SPEAKING WITH HASLINDA. THE NEW GOOD TIMES SAYS UNION LEADERS ARE JOINING STUDENT-LED PROTESTS IN FRANCE. WE HAVE A LOOK AT YOUR FRONT-PAGE NEWS, NEXT. THIS IS BLOOMBERG. VONNIE: THIS IS “BLOOMBERG BRIEF.” IT IS TIME NOW FOR YOUR FRONT-PAGE NEWS.

19:17 FIRST UP, THE NEW YORK TIMES ON NATIONWIDE STUDENT PROTESTS IN FRANCE. UNION LEADERS PLEDGING TO JOIN HIGH SCHOOLERS WHO HAVE SPENT TWO WEEKS BLOCKING SCHOOLS OVER UNDERSTAFFING, OVERCROWDING AND DILAPIDATED BUILDINGS. NEXT UP THE WASHINGTON POST ON PRESIDENT TRUMP’S REVERSAL OF HIS STANCE ON USING TAXPAYER DOLLARS TO PAY FOR ADS PROMOTING HIMSELF AND HIS POLICIES. IF ALL BACKLASH FROM DEMOCRATS AND SOME REPUBLICANS. A WHITE HOUSE OFFICIAL DIDN’T SAY WITH A WHITE HOUSE OFFICIAL DIDN’T SAY WHETHER TRUMP WOULD REIMBURSE THE GOVERNMENT FOR THE ADS THAT HAVE ALREADY AIRED. AND FINALLY COME THE FINANCIAL

19:56 TIMES REVERBERATE ACROSS CORPORATE AMERICA, FORCING COMPANIES TO OVERHAUL BORROWING PLANS AND EVEN RAISING THE SPECTER OF DEFAULTS AMONG BUSINESSES. BORROWING COSTS FOR THE LOWEST RATED COMPANIES HIT 17% THIS MONTH. THIS IS YOUR PICTURE AS WE HEAD INTO THE TUESDAY TRADING SESSION. WE HAVE FUTURES HIGHER AFTER A NICE RALLY IN THE UNITED STATES YESTERDAY WHICH IS REVERBERATING AROUND THE WORLD TODAY, A RALLY ACROSS ASIA TODAY AND ALSO ACROSS EUROPE. IT LOOKS LIKE WE MIGHT START IN THE GREEN.

20:27 BEAR IN MIND WE ARE ALREADY CLOSE TO THE S&P RECORD AND WE ARE AT A NASDAQ RECORD. ALSO THE EQUAL WEIGHT S&P HAS BEEN RISING FOR THREE DAYS AS WELL, SO BACK TO THE ROTATION TRADE AS WELL. A TINY BIT OF WEAKNESS TO THE U.S. DOLLAR PRIMARILY THANKS TO THE EURO WHICH IS REBOUNDING EVER SO SLIGHTLY TODAY. 10 YEAR YIELDS DOWN ABOUT THREE BASIS POINTS, SEEING JUST A LITTLE BIT OF A REBOUND. NOT EVERYWHERE, AND NOT AT THE FRONT END OF THE U.S. CURVE. CRUDE HELPING OUT IN THIS REGARD, BACK BELOW $99 A BARREL

21:01 NOW AND $88 ON NEW YORK CRUDE, SO QUITE THE SPREAD AND IT IS EVEN AS WE GO OUT FURTHER. GOLD REBOUNDING SLIGHTLY AS WELL. COMING UP, WE ARE GOING TO SPEAK TREASURIES WITH HENRIETTA PACQUE MENT OF ALLSPRING INVESTMENT. VONNIE: IT IS 5:30 A.M. IN NEW YORK CITY, 10:30 AM IN LONDON. I AM VONNIE QUINN WITH YOUR “BLOOMBERG BRIEF.” GLOBAL STOCKS NEAR IT RECORDS.

21:32 TREASURIES STABILIZING SOMEWHAT. RAY DALIO WARNING THAT TREASURY MARKET REMAINS VULNERABLE. THE LATEST WAVE OF BILLION-DOLLAR FUNDING IN THE AI SECTOR WITH OPENAI AND DEEPSEEK IN THE SPOTLIGHT. YEMEN’S GOVERNMENT CLAIMS TO HAVE REGAINED TERRITORY AFTER BATTLE WITH THE HOUTHIS. THAT MAY BE PROVIDING TO THE OIL MARKET. BRENT CRUDE CONTINUES TO DECLINE, WELL BELOW $100 A BARREL NOW, DOWN POINT – DOWN

22:03 ONE POINT 7%. QUITE THE SPREAD ON WTI AS WELL, $88 A BARREL. BUT LOOK AT EUROPEAN GAS FUTURES, GOING IN THE OPPOSITE DIRECTION. CLOSE TO 77 EUROS PER MEGAWATT HOUR. THIS AS WE ARE HEADING INTO HEATING SEASON WITH INVENTORIES MUCH TYPICALLY LOWER THAN THEY ARE TYPICALLY THIS TIME OF YEAR. A LITTLE BIT OF TREPIDATION IN THE GAS FUTURES MARKET. NOT SO MUCH FOR FUTURES. POINTING TO ANOTHER DAY OF GAINS AFTER A NICE RALLY IN THE U.S.

22:37 SENT THE NASDAQ TO A RECORD AND HELP THE S&P VERY MUCH AS WELL. UP ALMOST 1%. NVIDIA ALSO HIT ITS FIRST RECORD SINCE MAY. THE EQUAL WEIGHT AS A BE BACK IN RALLY MODE. YIELDS NOT BUDGING OUT THE FRONT END, OR .80 AND CHANGE – 4.80 AND CHANGE. A 10 YEAR OPTION TOMORROW AND A 30 YEAR AUCTION THURSDAY. LET’S GET THE INDIVIDUAL PREMARKET MOVERS NOW.

23:10 JUSTINA LEE HAS THOSE IN LONDON. JUSTINA: GOOD MORNING. STARTING WITH DEAL NEWS. THE FTE REPORTED YESTERDAY MCKESSON AND A PRIVATE EQUITY FIRM IS NEAR AN OFFER TO BUY OPTION CARE HEALTH OR ABOUT $5 BILLION. YOU CAN SEE THE COMPANY THAT PROVIDES A LOT OF INFUSION SERVICES AND THERAPY CENTERS IS UP A STAGGERING 23 PERCENT IN PREMARKET TODAY. NEXT, A DIFFERENT KIND OF DEAL. WE TALKED ABOUT THIS STOCK LAST WEEK WHEN AMAZON ALSO HAD AN

23:43 AGREEMENT TO PURCHASE SOME OF ITS NUCLEAR POWER, BUT CONSTELLATION ENERGY UP ANOTHER PRESET – ANOTHER 3% AFTER BLOOMBERG NEWS REPORTED ALPHABET IS ALSO NEAR AN AGREEMENT TO BUY NUCLEAR ENERGY OVER THE NEXT FEW YEARS FROM CONSTELLATION FOR ABOUT $1 BILLION OR MORE. LASTLY, MORE BAD NEWS FOR NIKE, BERENBERG DOWNGRADING THE STOCK FROM HOLD TO SELL, SAYING THERE MAY BE ANOTHER 19% DOWN SIDE THE SPORTSWEAR COMPANY. THE ANALYST IS SAYING HE IS

24:16 STILL SEEING CONCERNS WITH THE POSITIONING OF NIKE AND ALSO WITH SALES IN CHINA. WE CAN SEE FURTHER DECLINES FOR NIKE, POSSIBLY WHEN THE MARKET OPENS LATER, AND THIS STOCK ALREADY SET FOR THE WORST YEAR ON RECORD. VONNIE: TOUGH DAY, WEEKEND, MONTH FOR NIKE. MARKETS ARE SEEING SOME RELIEF AS BONDS CLIMB. HENRIETTA PACQUEMENT OF ALLSPRING WRITING THE TECTONIC PLATES IN GLOBAL BOND MARKETS ARE SHIFTING. PRICE VOLATILITY IS ELEVATED, AND YIELDS ARE HIGH. IT IS NEVER ONE FACTOR THAT

24:49 DRIVES BOND PRICES BUT THE INTERPLAY BETWEEN SEVERAL. SHE IS HEAD OF GLOBAL FIXED INCOME AT ALLSPRING AND JOINS US NOW. SO WHAT IS TAKING PRIORITY NOW? WHAT IS THE MARKET MOST FOCUSED ON? HENRIETTA: I THINK THERE ARE THREE KEY FACTORS MARKET ARE LOOKING AT AT THE MOMENT. OBVIOUSLY, THAT IS THE IMPACT OF ENERGY PRICES, SO WE ARE SEEING THAT, AND THAT EXPLAINS SOME OF THE RALLY WE HAVE SEEN THIS MORNING ON THE BOND MARKET.

25:21 THEN, YOU HAVE GOT THE FISCAL DEFICIT STORY. DEPENDING ON THE COUNTRY YOU ARE LOOKING AT, THAT IS ANOTHER DRIVER. THEN THIS YEAR SUPPLY AND ISSUANCE, SOME OF IT COMING FROM THE CORPORATE SECTOR AND THE AI STORY IN PARTICULAR. THOSE ARE THE THREE BIG ONES. DEPENDING ON THE DAY, YOU CAN SEE MORE OF AN IMPACT OF ONE OR THE OTHER. VONNIE: THE MOVE HIGHER IN YIELDS, ARE WE IN A NEW SEMIPERMANENT REGIME NOW, OR DOES ANY OF THIS RE-PRICING REVERSE AT ALL?

25:53 HENRIETTA: YOU NEED TO START ADDRESSING SOME OF THE CAUSES OF THESE ELEVATED YIELDS. THERE ARE REASONS FOR THAT. WE HAVE NOT REALLY SEEN THE KIND OF PROGRESS THAT REALLY IS GOING TO MAKE A DENT ON THESE HIGH YIELDS IN THE FUTURE. I THINK NOW, IF YOU LOOK AT MARKET PARTICIPANT BEHAVIOR AS WELL, THEY ARE LOOKING FOR THE WEAKER LINKS IN THE MARKET, FRANCE BEING AN EXAMPLE OF THAT, FOR INSTANCE. VONNIE: BACKING UP A LITTLE BIT TODAY BUT CERTAINLY FRANCE HAS HAD A

26:26 TOUGH FEW DAYS. WHEN TREASURY SECRETARY SCOTT BESSENT SAYS HE IS CONFIDENT WE CAN BEND THE DEBT CURVE WITH GROWTH ABOVE 3% AND THAT I COULD HAPPEN VERY QUICKLY, DOES THE MARKET TAKE HIM SERIOUSLY? IS IT A REASONABLE HYPOTHESIS? HENRIETTA: I MEAN, GROWTH HELPS, OBVIOUSLY. THE U.S. IS LUCKY IN THAT SENSE. BUT I EXPECT THE MARKETS ARE GOING TO EXPECT MORE THAN THAT. WE HAVE HEARD QUITE A BIT FROM BESSENT OVER THE LAST FEW MONTHS, AND THAT HAS PROBABLY

26:57 CONTRIBUTED TO SOME OF THE VOLATILITY WE HAVE SEEN. IT HAS BROUGHT THE FOCUS ON YIELD LEVELS AND THE MOVES WE HAVE SEEN. SO, YEAH, GROWTH IS GOOD, BUT I THINK WE WILL NEED MORE THAN THAT, AND THE MARKET WILL BE VERY ATTUNED TO THE DEFICIT AND WHAT HAPPENS GOING FORWARD. VONNIE: MCQUARRIE TODAY SAYING A STATED AMBITION IS NOT A PLAN, AND WE ARE ALSO CRUNCHING THE NUMBERS AND FINDING, IN 2023, 2024, WE HAD GROWTH CLOCKING NEAR 3%,

27:29 AND PUBLIC DEBT WAS CLIMBING AT THE TIME. SO IT IS NOT NECESSARILY A DONE DEAL. BUT WHAT WOULD NEED TO A COMPANY THAT GROWTH? HENRIETTA: YOU’RE GOING TO HAVE A LOOK AT THE FISCAL SIDE. IF YOU LOOK AT THE U.S., IT STILL HAS A GAPING DEFICIT, SO I THINK INVESTORS ARE GOING TO LOOK FOR SOME CLUES AS TO WHAT IS GOING TO HAPPEN THERE. I THINK THAT IS A CONCERN. THERE HAS NOT BEEN A PARTICULAR FOCUS AND DETAILS IN TERMS OF

28:00 PLANNING, IN TERMS OF HOW TO TACKLE THAT DEFICIT. SO, YEAH, GROWTH. AND I HOPE – BUT I THINK THE MARKET IS LOOKING AT MORE THAN THAT. WE TALKED ABOUT THE ENERGY STORY IN THE BACKGROUND YET OBVIOUSLY, THAT IS ANOTHER CATALYST. VONNIE: AS YOU POINT OUT, THE DETAILS AND ALL OF THESE SCENARIOS IS IMPORTANT FOR BOND INVESTORS. SO YOU ARE TRYING TO CONSTRAIN MACRO POSITIONING BUT FINDING IT DIFFICULT. HOW DO YOU CONSTRAIN MACRO POSITIONING? HENRIETTA:

28:32 I THINK IT REALLY IS A QUESTION OF BEING VERY DELIBERATE IN THE RISK BUDGETING WHEN BUILDING PORTFOLIOS. THE POSITIVE SIDE – AND WE TALKED ABOUT THAT LAST TIME – IS THERE IS INCOME IN THE FIXED INCOME MARKETS, SO THAT IS HELPFUL IN TERMS OF CONSTRUCTING THE PORTFOLIOS. WE ARE PICKING OUR SPOTS IN TERMS OF WHERE WE ARE EXPOSED IN THE CURVE HERE THERE IS OPPORTUNITY INTERNATIONALLY AS WELL, SO WE ARE LOOKING AT DIVERSIFICATION PLAYS THERE. WHAT IS INTERESTING TO SEE, AND WE ARE STARTING TO EXPERIENCE A

29:05 BIT OF A MOVE IN CREDIT SPREADS. WE ARE STARTING FROM A VERY TIGHT BASE, SO THERE IS ROOM TO GO, BUT WE HAD THE AI STORY AND THE HYPERSCALERS. THERE IS A BIT OF SPREAD THAT APPEARED IN THE MARKET THERE, COURTESY OF THE NOISE AROUND FRANCE, SOME OF THE BANKS AS WELL HAVE MOVED FROM A SPREAD PERSPECTIVE. WE ARE STARTING TO GET OPPORTUNITIES ON THE CREDIT SIDE AS WELL THAT WE ARE LOOKING TO PICK OFF. VONNIE: ARE YOU SAYING THERE ARE CERTAIN SPOTS IN U.S. HYPERSCALER DEBT AND IN FRENCH BANKS THAT LOOK ATTRACTIVE TO YOU? HENRIETTA:

29:41 LOOKING AT THE FRENCH EXAMPLE, WE WERE ACTUALLY UNDERWEIGHT ON THE CORPORATE SIDE IN FRANCE. YOU GO – GOT QUITE A POWERFUL TECHNICAL THERE, WITH INSURERS TIGHTENING SPREADS ON THAT SIDE. SO WE STARTED FROM A NICE BASE AND ARE LOOKING TO ADD IN SOME OF THAT UNDERWEIGHT. IN TERMS OF THE HYPERSCALERS, WHAT IS GREAT IS WE ARE STARTING TO HAVE A LOT OF CHOICE. YOU CAN LOOK THE ID MARKETS, HIGH MARKETS, STRUCTURED PRODUCTS. THERE IS A LOT TO DO FROM A SECURITY SELECTION PERSPECTIVE TO PICK THE RISK YOU WANT, SO

30:14 THOSE ARE WHAT WE ARE DOING AT THE MOMENT. VONNIE: HOW MUCH WIDER DO YOU EXPECT SPREADS TO GET, PARTICULARLY IN HYPERSCALER DEBT, GIVEN HOW MUCH IS TO COME TO MARKET? YOU PUT THE NUMBERS ON IT, IT IS A SIGNIFICANT AMOUNT OF U.S. GDP IF YOU COMPARE THE TWO. HENRIETTA: WE ARE EXPECTING THAT ISSUANCE TO CONTINUE, SO IT IS A QUESTION OF LOOKING AT THIS LOCATIONS AS AND WHEN THEY HAPPEN. WE ARE NOT NECESSARILY EXPECTING THE SPREADS TO SHOOT

30:46 LOWER IN THAT SPACE, BUT SOME OF THE CARRY PLAYS HERE ARE TWO INTERESTING TO BE IGNORED. VONNIE: WHEN YOU SAY THINGS ARE GEOGRAPHICALLY LOOKING MORE INTERESTING, WHERE ARE YOU LOOKING, AND ARE THERE AREAS AROUND THE GLOBE THAT HAVE NOT BECOME SATURATED OR UNINVESTABLE FROM YOUR POINT OF VIEW AT THIS POINT? HENRIETTA: I THINK FRANCE IS A TRICKY ONE, IF YOU LOOK AT THE SOVEREIGN DEBT. THAT WE ARE PROBABLY AVOIDING AT THE MOMENT. AND WE ARE LOOKING FOR TRADES

31:18 AROUND IT. WE HAVE SEEN A BIT OF CONTAGION ON THE EUROPEAN SIDE, SO WE ARE LOOKING TO BENEFIT FROM SOME OF THOSE CONTAGION TRAITS RATHER THAN GOING DIRECTLY FOR FRANCE AT THIS POINT IN TIME, GIVING YOU HAVE GOT THE ELECTION NEXT YEAR, WE EXPECT A BIT OF VOLATILITY THAT YOU MAY NOT QUITE BE FOR AT THIS POINT. VONNIE: THAT IS INTERESTING. HALF THE HOLDERS OF FRENCH BONDS ARE FROM OUTSIDE THE COUNTRY, SO IT IS INTERESTING TO HEAR FROM SOMEBODY WHO IS

31:50 PULLING BACK AND WOULD NOT INVEST THERE. IT MAKES ME WONDER IF RAY DALIO HAS A POINT, IF THAT IS WHAT IS HEADED TOWARDS THE U.S. IF THE SITUATION CONTINUES FISCALLY? HENRIETTA: I THINK THE MARKET IS QUESTIONING THE SITUATION IN THE U.S. AND I THINK THAT IS SOMETHING THAT IS NEW, I WOULD SAY, TO THE U.S. MARKET. SO IT WILL BE REALLY INTERESTING TO SEE HOW THE ADMINISTRATION REACTS TO THAT. BUT THE PROOF IS IN THE

32:22 PUDDING, AND THE YIELDS WE ARE SEEING, PARTICULARLY AT THE LONG END OF THE CURVE, THAT IS STARTING TO BE QUITE HIGH. OBVIOUSLY, YOU HAVE MORE DRAMATIC STABILIZERS UP TO A POINT, YOU HAVE BY AND MAINTAIN AND BUY-AND-HOLD INVESTORS THAT WILL BE INTERESTED AT THE SORTS OF LEVELS, BUT WILL BE EXPENSIVE. VONNIE: THANK. HENRIETTA PACQUEMENT ALLSPRING GLOBAL INVESTMENTS. NOW TO OTHER TOP STORIES TRENDING ON THE TERMINAL.

32:53 MOONSHOT AI CLOSE THE FINAL ROUND OF PRIVATE FUNDRAISING WITH VALUATION AROUND $50 BILLION. THE HONG KONG-BASED COMPANY IS HEADED TOWARDS AN IPO IN THE FIRST QUARTER OF 2027 ACCORDING TO SOURCES. CITIGROUP TAKES THE TOP SPOT FOR UNDERWRITING IN GLOBAL IPO’S THROUGH SEPTEMBER. ACCORDING TO BLOOMBERG DATA, CITI IS JUST AHEAD OF GOLDMAN SACHS. AMONG ITS TRANSACTIONS SO FAR, THE INDIAN NATIONAL STOCK EXCHANGE.

33:23 AND WALL STREET BONUS IS EXPECTED TO HIT AN ALL-TIME HIGH. ACCORDING TO THE NEW YORK STATE COMPTROLLER, IT WILL SURPASS LAST YEAR’S RECORDS. THAT WILL TRANSLATE TO LARGE BONUSES FOR FINANCE PROFESSIONALS. COMING UP, PRESIDENT TRUMP SIGNS AN EXECUTIVE ORDER AIMED AT CUTTING DIESEL COSTS. THIS IS BLOOMBERG. ♪

33:58 VONNIE: THIS IS THIS “BLOOMBERG BRIEF.” COMING UP, AND EXCLUSIVE INJURY WITH JP MORGAN CHAIRMAN AND CEO JAMIE DIMON. THAT IS AT 9:00 NEW YORK TIME, 2:00 LONDON TIME. THIS IS BLOOMBERG. >> ARE YOU CONSIDERING EASING LIMITS? >> WE ARE DOING A LOT FOR THE FARMERS. THE FARMERS HAVE BEEN WITH ME FROM DAY ONE, I’VE MADE THE

34:29 FARMERS A LOT OF MONEY, WE’VE GIVEN THEM A LOT AND HELPED THEM A LOT. I WILL BE GOING TO IOWA VERY SOON AND TODAY I’M GOING TO NEBRASKA FOR OUR FARMERS. I’LL BE HELPING THEM WITH DIESEL. VONNIE: PRESIDENT TRUMP SPEAKING AT THE WHITE HOUSE BEFORE SIGNING AN EXECUTIVE ORDER TO EASE RESTRICTIONS ON THE USE OF THE TAX-EXEMPT RED DYE DIESEL, AND ATTEMPT TO CUT FUEL COSTS. RACHEL, ANOTHER EFFORT ON THE PART OF THE TRUMP ADMINISTRATION CUT GAS PRICES, BASICALLY. WHAT IS THIS GOING TO DO FOR

35:03 THE U.S. CONSUMER, THIS RED DYE DIESEL BAN? >> I THINK WHAT IT’S GOING TO DO IS IT MIGHT NOT HAVE SUCH A TANGIBLE EFFORT, BUT WHAT THE PRESIDENT IS CLEARLY TRYING TO DO IS OFFER KIND OF A BONE TO THE AMERICAN PEOPLE TO SAY I’M HEARING YOUR CONCERNS, I’M GOING TO TRY TO LOWER PRICES AS MUCH AS I CAN. THAT’S SOMETHING I THINK REPUBLIC ON – REPUBLICAN ON THE HILL HAVE ALSO TALKED ABOUT THAT AS SOON AS THE WAR IS OVER AND IT IS WON, THE PRICES WILL

35:34 COME DOWN AND THINGS WILL START TO FEEL BETTER. BUT OF COURSE THERE’S A LOT OF OTHER THINGS GOING ON AS REGULAR GAS PRICES ARE SKYROCKETING. THIS IS ONE PIECE OF THE PUZZLE THE PRESIDENT IS TRYING TO USE. AS YOU MENTIONED HE WAS GOING TO IOWA AS WELL. THESE ARE TWO STATES WHERE HE HAS STARTED TO SEE SOME OF HIS SUPPORT SLIP, SO WHETHER THIS IS ACTUALLY GOING TO IMPACT AMERICANS IS HARD TO SAY. BUT IT WILL SHOW THE PEOPLE

36:06 THAT THE ADMINISTRATION REPUBLICANS ARE AT LEAST HEARING THEIR CONCERNS. VONNIE: IT SEEMS TO BE USED MORE FOR FARM AND CONSTRUCTION EQUIPMENT AND I’M NOT SURE YOU WOULD EVEN BE ABLE TO GET IT AT A REGULAR GAS PUMP. ELSEWHERE WE HAVE THE TREASURY SECRETARY SAYING THE U.S. CAN VERY QUICKLY BEND THE U.S. DEBT CURVE. OBVIOUSLY WE’VE BEEN TALKING ABOUT A QUITE A BIT THIS MORNING. SAYING IT AND DOING IT ARE TWO DIFFERENT THINGS. IS THERE A PLAN TO CUT THE DEBT CURVE? PAUL:

36:38 SECRETARY – RACHEL: SECRETARY BESSENT SAYS THERE IS A PLAN AND THEY ARE HOPING THEY CAN BEND IT AND IT WILL ALL HAPPEN NATURALLY. I KNOW THAT THE DEBT CURVE AND THE DEBT CEILING HAS BEEN TALKED ABOUT QUITE A LOT THE REPUBLICANS HAVE SAID THAT THEY WANT TO RAISE THE DEBT CEILING, SOMETHING A LOT OF FISCAL HAWKS ARE NOT OK WITH IF THAT IS GOING TO HAPPEN. THERE WOULD HAVE TO BE SEVERE OFFSETS AND THE FOR THIS STORY BEFORE WITH PRESIDENT TRUMP’S FIRST TAX AND SPENDING PACKAGE, THE ONE BIG BEAUTIFUL BILL.

37:09 THE DEBT CURVE AND THE DEBT CEILING ARE SOMETHING I THINK A LOT OF PEOPLE ARE CONTINUING TO TALK ABOUT, SOME THING THAT REPUBLICANS HAVE TO CONTEND WITH ESPECIALLY THIS WINTER BEFORE THE NEW CONGRESS. VONNIE: BRING US UP TO SPEED WITH ANYTHING WE KNOW REGARDING THOSE BOMBERS THAT WERE TAKEN IN GREAT HASTE OUT OF THE U.K. FROM THAT AIR BASE. RACHEL: PRESIDENT TRUMP SET THE BOMBERS ARE NOW BACK ON U.S. SOIL AND WAS KIND OF IN RESPONSE TO THAT TERROR THREAT. MARCO RUBIO HAS SAID IT IS PART OF A ROUTINE SWITCH UP, SO WE ARE SEEING A BIT OF A MISS

37:40 COMMUNICATION FROM THE ADMINISTRATION. IT SOUNDS LIKE THE PRESIDENT IS TRYING TO DISTANCE HIMSELF FROM THAT POSITION, ESPECIALLY IN A TIME OF THE U.S. IS DEALING WITH QUITE A LOT ABROAD. IT SEEMED LIKE IT IS GETTING A PRETTY WELL RECEPTION ESPECIALLY FROM REPUBLICANS AND THIS IS ANOTHER CONFLICT THAT I THINK AMERICANS MAYBE AREN’T THINKING OF RIGHT NOW. GAS PRICES ARE REALLY HIGH, SOMETHING I THINK PEOPLE ARE PAYING ATTENTION TO MORE. THE WAR IN IRAN CERTAINLY IS DRIVING THAT SO IS THE PRESIDENT IS TRYING TO GET A

38:11 HANDLE ON HIS AFFAIRS ABROAD, I THINK WHAT WE ARE SEEING WITH THE DIESEL LIFT AND OTHER THINGS, I THINK HE IS TRYING TO SHIRK SUPPORT, BUT THERE’S ONLY SO MUCH TIME LEFT BEFORE THE ELECTION. I DON’T KNOW IF ALL OF THIS STUFF IS GOING TO CONVINCE AMERICANS BUT HE AND OTHER REPUBLICANS ARE ON THE ROAD TO DEFINITELY TRY. VONNIE: RACHEL, THANK YOU SO MUCH. TURNING TO TEXT, OPENAI SAID TO BE IN TALKS WITH BLACKROCK AND MULTIPLE UAE RUNS TO HELP ANCHOR A $30 BILLION FINANCING ROUND AHEAD OF ITS IPO. ACCORDING TO SOURCES, THE FUNDS

38:44 WOULD FORM A SYNDICATE TO INVEST IN THE ROUT. JOINING US NOW IS BLOOMBERG EQUITIES STRATEGIST. ANOTHER $30 MILLION, OR SIMPLY THIS WOULD TIDE THEM OVER TO THE IPO WHICH OBVIOUSLY THEN WOULD BE THE CAPITAL THAT THEY WOULD USE. IS THERE ANYTHING THAT WE SHOULD BE CONCERNED ABOUT IN TERMS OF UAE FUNDS GETTING INVOLVED HERE AND THE RUSH FOR SOVEREIGNS TO TRY TO GET THE LEAD IN AI? >> GOOD MORNING. I THINK YOU TOUCHED ON THE KEY POINT HERE.

39:20 THE $30 BILLION RAISE, THAT IS AN ENORMOUS AMOUNT OF CAPITAL. ONE OF THE BIG TAKEAWAYS FOR INVESTORS IS ACTUALLY THE SCALE OF INVESTMENT IN THE SPACES MOVING AWAY FROM TRADITIONAL MONEY TO SOVEREIGN CAPITAL AND I THINK THAT REALLY REFLECTS THE SCALE OF THE INVESTMENT, BUT ALSO THE STAKES INVOLVED. OPENAI, ANTHROPIC, THEY ARE COMPETING TO HAVE THE BEST MODELS AND THAT REQUIRES INCREASING AMOUNTS OF

39:54 INVESTMENT. SO INVESTORS ARE REALLY TACKLING WITH THIS QUESTION OF CAN THIS INVESTMENT ULTIMATELY JUSTIFY THE RETURNS THAT THESE COMPANIES WILL BE ABLE TO GENERATE? VONNIE: IT REALLY FEELS LIKE THERE IS NO END TO THE AMOUNT OF MONEY THESE COMPANIES CAN RAISE PRIVATELY, AND IT IS THE SAME NOW IN CHINA. DEEPSEEK RAISING AT LEAST $12 BILLION IN A FUNDING ROUND BACK BY TENCENT AND CATL. TELL US MORE ABOUT HONG KONG AND CHINA-BASED COMPANIES AND HOW THEY ARE RAISING MONEY.

40:25 RUHELL: EXACTLY. DEEPSEEK WHEN IT FIRST CAME TO MARKET WAS VIEWED AS A MORE EFFICIENT, SLIGHTLY CHEAPER VERSION OF THESE AI MODELS, BUT CLEARLY WITH THIS RAISED WHICH IS ALSO A SIGNIFICANT SUM, IT SUGGESTS THAT EVEN WITH SOME OF THE CHEAPER, MORE EFFICIENT MODELS, THERE ARE STILL GOING TO REQUIRE LARGE AMOUNTS OF AND COMPUTER. AND I THINK THAT IS THE BIG TAKEAWAY. ALTHOUGH SOME OF THESE MORE NIFTY MODELS ARE COMING TO MARKET, THE SCALE OF THE INVESTMENT IS GOING TO BE

40:58 SIMILAR IN SIZE TO SOME OF THE BIGGER PLAYERS LIKE OPENAI AND ANTHROPIC, ETC. VONNIE: POWER NEEDS IS OBVIOUSLY A HUGE THING, ELECTRICITY NEEDS AND SO ON. GOOGLE AS WE WERE REPORTING LAST WEEK AND CONSTELLATION ARE VERY CLOSE NOW TO A BILLION-DOLLAR DEAL FOR NUCLEAR POWER. TELL US HOW THIS ALL WOULD WORK. RUHELL: I THINK THE KEY TAKEAWAY FOR THIS PARTICULAR DEAL IS THAT THE AI BOTTLENECK IS INCREASINGLY MOVING AWAY FROM CHIPS TO ELECTRICITY.

41:31 WE KNOW THE AI ECOSYSTEM IS GOING TO BE A HUGE CONSUMER OF ENERGY AND COUNTRIES ARE INCREASINGLY LOOKING AT DIFFERENT WAYS TO SOLVE THAT PROBLEM. NUCLEAR IS BEING VIEWED AS ONE POTENTIAL SOLUTION. I THINK IT REALLY REFLECTS THE ENERGY CONSUMPTION AROUND THE SPACE AND COMPANIES ARE LOOKING FOR INCREASINGLY INTIMATE OF SOLUTIONS AND I THINK THIS IS PROBABLY GOING TO BE THE FIRST OF MANY DEALS. VONNIE: THANK YOU SO MUCH FOR BRINGING

42:02 US UP TO SPEED THIS MORNING. COMING UP, WE WILL GET YOU SET UP FOR YOUR TRADING DAY. THIS IS BLOOMBERG. VONNIE: THIS IS “BLOOMBERG BRIEF.” A LOOK AT WHAT IS AHEAD TODAY. PLENTY OF FED SPEAK TODAY AS WELL. JOHN WILLIAMS AT 9:00 A.M. EASTERN.

42:37 AND TUNING TO ADD EXCLUSIVE INTERVIEW WITH J.P. MORGAN CHAIRMAN AND CEO JAMIE DIMON AT 9:00 A.M. ON BLOOMBERG TV AND RADIO, SO JUST A COUPLE OF HOURS. THAT’S TAKE A LOOK AT SOME PREMARKET MOVERS. CONSTELLATION ENERGY MOVING ONCE AGAIN ON THIS DEAL FOR NUCLEAR POWER THAT WE WERE TALKING ABOUT LAST WEEK THAT IS ABOUT TO COME TO FRUITION. UP ANOTHER 3% IN THE PREMARKET. MCKESSON IS INTERESTED IN BUYING OPTION CARE AND 90 HAVING ANOTHER DOWN DAY AFTER

43:08 THOSE EARNINGS LAST WEEK HIT THE MARKET. IT HAS NOW CUT ITS TARGET AND PRICE RECOMMENDATION. HERE IS YOUR MACRO PICTURE GOING INTO THE TUESDAY TRADE. NASDAQ FUTURES CONTINUE AFTER HITTING A RECORD YESTERDAY. THE 10 YEAR YIELDS DOWN THREE BASIS POINTS WHICH IS HELPING AND ALSO BEING INFLUENCED BY LOWER CRUDE. THAT IS IT FOR “BLOOMBERG BRIEF.”