Apple & Nvidia Battle & the Business of the World Cup | The Close 7/17/2026

>> THE COUNTDOWN IS ON. EVERYTHING YOU NEED TO GET THE EDGE AT THE END OF THE MARKET DAY. THIS IS "THE CLOSE." KATIE: HAPPY FRIDAY TO YOU. WE ARE KICKING YOU OFF TO THE CLOSING BELL HERE IN THE U.S. HERE IS A CHECK ON WHAT MARKETS ARE DOING. THE S&P 500 NOT AT SESSION LOWS, BUT WE HAVE SEEN SOME OF THE LOSSES COME BACK IN AS WE COUNT DOWN AN HOUR UNTIL THE BELLS, DOWN ABOUT ZERO .9%. HERE IS WHERE THE WEAKNESSES COMING FROM. THE NASDAQ 100 OFF BY ABOUT 1.2%. THE PHILADELPHIA SEMICONDUCTOR INDEX DOWN ABOUT 1.2% AS WELL. THAT INDEX POISED FOR A BEAR MARKET, SO KEEP AN EYE ON THAT. WE ARE ALSO WATCHING BRENT AS WE CONTINUE TO MONITOR DEVELOPMENTS IN THE MIDDLE EAST. BRENT ABOUT 4% HIGHER AT THE MOMENT, TRADING JUST BELOW $88 A BARREL. LET'S TAKE A LOOK AT SOME OF THE INDIVIDUAL EQUITIES. APPLE RECLAIMING ITS SPOT AS THE WORLD'S MOST VALUABLE COMPANY, SURPASSING NVIDIA. APPLE SHARES UP MARGINALLY ON THE DAY, BUT THAT LOOKS PRETTY GOOD IN A DOWN DAY FOR NEARLY EVERYTHING. SPACEX, MEANWHILE, WIPING OFF ABOUT A TRILLION DOLLARS WORTH OF VALUE, $10 OR SO BELOW ITS IPO PRICE, DOWN ANOTHER 4% TODAY. NETFLIX REPORTING AFTER THE BELL YESTERDAY. YOU CAN SEE NOT EXACTLY THOSE RESULTS BEING EMBRACED BY THE BROADER MARKETS. NETFLIX SHARES DOWN ABOUT 7%. LET'S KICK THINGS OFF ON THIS FRIDAY WITH MIMI DOVE, THE SENIOR CLIENT ADVISOR AT GIN TRUST. SHE JOINS ME HERE ON SET. GREAT TO SEE YOU. THERE'S A LOT GOING ON. LET'S TALK ABOUT THE ONLINE WE ARE SEEING SPECIFICALLY IN THE CHIP SECTOR, BECAUSE FOR A WHILE IT WAS A STORY THAT WE WERE COMFORTABLE WITH, SUPPLY CONSTRAINTS PUSHING UP SHIPS ACROSS THE BOARD, BUT PARTICULARLY THOSE MEMORY CHIPMAKERS. IT SEEMS LIKE THAT STORY HAS STARTED TO REVERSE IN THE PAST FEW WEEKS. >> THAT IS RIGHT. THE MOMENTUM IS COMING OUT OF THE SALES. THERE IS A GOOD EVENT OF LEVERAGE FROM THE RETAIL PROUD OF. ESPECIALLY IF YOU LOOK AT ETF'S IN COMBINATION. SILLY DECENT AMOUNT OF ROOM TO COME OUT RIGHT NOW. KATIE: THAT IS SOMETHING I HAVE BEEN WONDERING EVEN FROM A SENTIMENT PERSPECTIVE. YOU THINK ABOUT WHAT IS HAPPENING IN SOUTH KOREAN MARKETS IN PARTICULAR, WHICH MAINLY MEANS SAMSUNG AND SK HYNIX AT THIS POINT, BUT HOW MUCH IS THAT FEEDING THROUGH INTO WHAT IS GOING ON IN TERMS OF THE U.S. MARKETS? MIMI: CERTAINLY IN THOSE SECTORS, THE HYPERSCALERS AND CHIP MANUFACTURERS, I THINK IT IS ALL RELATED. THOSE WERE THE FASTEST ONES UP. I THINK WHEN WE ARE SEEING WINDS COMING OUT OF THE SALES, WE ARE GOING TO SEE THAT DEFLATE FASTER. KATIE: BEYOND JUST THE CHIPMAKERS AND THE CHIP SECTOR, YOU HAVE THE BROADER TECH UNIVERSE ASKING A LOT OF EXISTENTIAL QUESTIONS RIGHT NOW, WHEN IT COMES ESPECIALLY TO AI, WE ARE STARTING TO GET CLOSER TO THE FIGURES OUT OF THE MAGNIFICENT 7, A COHORT WHICH HAD NOT DONE TOO MUCH YEAR TO DATE. AS WE ASK THESE QUESTIONS AND WATCH THIS NO MENTION OF REBIRTHS, HOW ARE YOU THINKING THROUGH THE MAG 7? MIMI: WE HAVE HEDGES ON THE MAG 7. WE HAVE BEEN BIG BELIEVERS IN DIVERSIFYING AWAY FROM THE MAG 7. THE TOP PLAYERS ON THE S&P ARE CLOSE TO THE -- 40% OF THE INDEX. WE BELIEVE THE BROAD PERFORMERS WILL OUTPERFORM AS YOU SEE MORE AI IMPLEMENTATIONS. THE MAG 7 HAS NOT DONE MUCH THIS YEAR. IT IS THE MID-CAPS, THE SMALLER CAPS, THE EQUAL OVERWEIGHT, THE FOREIGN EQUITIES THAT HAVE ALL BEEN BEATING THE MAG 7 THIS YEAR. WE THINK THERE IS MORE TO RUN THERE. KATIE: THAT IS A FAIR POINT. THERE ARE PLENTY OF PLACES TO LOOK RIGHT NOW. AT THE INDEX LEVEL, IF WE WATCH THAT BROADENING OUT CONTINUE, IF YOU DO NOT HAVE THE SEVEN LARGEST NAMES OR SO IN THE INDEX AS PARTICIPATING IN THIS RALLY, WHAT CAN WE EXPECT AT THE INDEX LEVEL? MIMI: WE ARE NOT OVERLY CONCERNED AT THE INDEX LEVEL. RIGHT NOW, CAPEX RELATED TO AI IS ABOUT 2.5% OF GDP. THESE ARE NOT SMALL NUMBERS, AND THEY ARE FUELING A FAIR AMOUNT OF GROWTH. THE LAST JOBS NUMBER WAS WEAKER, BUT WE ARE NOT SEEING MUCH WEAKNESS ON THE BROADER ECONOMY RIGHT NOW. VERY EARLY DAYS IN THIS QUARTER'S EARNINGS, BUT THE BANKS HAVE REALLY BEEN SHINING STARS SO FAR. KATIE: ABSOLUTELY. YOU THINK ABOUT THOSE EQUITY TRADING NUMBERS, SORT OF BLEW IT OUT OF THE WATER. WHEN IT COMES TO OTHER PARTS OF THE MARKET, SECTORS THAT MIGHT BE IMPLEMENTING AI, THOSE ARE SOME OF THE PLACES WHERE YOU CAN LOOK AND YOU CAN ACTUALLY SEE SOME OUTPERFORMANCE. I WONDER WHAT SORT OF SPOTS YOU ARE PICKING AND CHOOSING HERE. MIMI: WE'VE GOT OUR EYES ON BIOTECH AND DEFENSE AND QUANTUM. WE ARE REALLY LOOKING FOR GOOD WAYS TO IMPLEMENT THOSE THEMES. WE THINK THOSE COULD BE MULTI-YEAR THEMES THAT COULD BENEFIT IN THE COMING YEARS. KATIE: TALK TO US ABOUT HOW VALUATIONS PLAYER INTO THAT. EVEN WITH THE MAG 7 LAGGING, THE WHOLE STORY HAS BEEN ABOUT AI, AND ARE THERE ANY ACTUAL BARGAINS OUTSIDE OF THE TECH SECTOR? MIMI: I THINK THAT IS PART OF THE REASON WHY THE MID-CAPS AND SMALL CAPS HAVE BEEN DOING BETTER THIS YEAR. AND THEN IF WE LOOK AT THE COMMODITY SPACE, THE SERVICES SPACE, THESE NON-AI AFFECTED, THEN YOU SHOULD SEE LESS VOLATILITY THERE AS LONG AS THE ECONOMY CAN HANG IN. KATIE: SPEAKING OF THE ECONOMY, SOMETHING ELSE WE SAW THIS WEEK WAS A REVIVAL IN CRUDE PRICES, IN BRENT PRICES. THE SITUATION IN THE MIDDLE EAST REMAINS AS UNPREDICTABLE AS EVER, BUT YOU HAVE SEEN PRICES COME BACK. HOW DOES THAT POTENTIALLY FACTOR INTO THIS CONVERSATION? MIMI: ON THE MARGIN, WE DO CONTINUE TO HOLD REAL ASSETS AS AN INFLATION HEDGE. THAT IS ENERGY PRODUCERS, GOLD, URANIUM. WE HAVE GOTTEN A MIX. GIVEN THE AMOUNT OF UNCERTAINTY YOU JUST POINTED OUT, AND IT SEEMS LIKE EVERY OTHER DAY WE ARE GOING BACK AND FORTH, THAT IS A CORE PART OF OUR PORTFOLIO, AND THAT IS PROVIDING SOME HEDGE AGAINST THE VOLATILITY THERE. KATIE: MIMI, ALWAYS GREAT TO SEE YOU. APPRECIATE YOU STOPPING BY. MIMI DOVE IS THE SENIOR CLIENT ADVISOR AT GENTRUS. THIS IS THE HEADLINE COMING FROM THE WALL STREET JOURNAL PET SPACEX IS IN TALKS TO PROVIDE COMPUTING POWER FOR THE PENTAGON. SPACEX SHARES DOWN BY ABOUT 2.5% . WE WILL CONTINUE TO FOLLOW THAT STORY. COMING UP ON THE CLOSE, THE BATTLE FOR THE TOP SPOT. APPLE FIGHTING IT OUT WITH NVIDIA AS THE WORLD'S MOST VALUABLE COMPANY. PLUS, NETFLIX'S GROWTH PAINS. SIMON GALLAGHER JOINS US ON THE BACK OF A TEPID THIRD-QUARTER FORECAST. AND THE WORLD CUP FINALS JUST AROUND THE CORNER. AN MGM CEO ADAM GREENBLATT STOPS BY TO DISCUSS THE BETTING BOOM AROUND THE TOURNAMENT. THIS IS THE CLOSE ON BLOOMBERG. ♪ KATIE: BONDS ISSUED BY HYPERSCALERS TO FUND THE AIA BUILD OUT STARTING TO DRAG ON INVESTOR PORTFOLIOS. THE DEBT HAS BEEN UNDERPERFORMING ON NEARLY EVERY METRIC. OUR NEXT GUEST SHOWING THAT THIS ONSLAUGHT OF DEBT DOES NOT YET RISK HIT LIMITS THAT COULD PREVENT LIFE INSURERS FROM BUYING UP MORE OF THOSE BONDS. NATHANIEL JOINTS ME NOW ON SET. IT IS GREAT TO SEE YOU. WAXED GREAT TO SEE YOU AGAIN. THANKS FOR HAVING ME ON. KATIE: LET'S TALK ABOUT WHAT WE ARE SEEING WHEN IT COMES TO THE SPREAD LEVEL. WE TALK ABOUT ALL THIS MASSIVE ISSUANCE FROM THE HYPERSCALERS, YOU ARE STARTING TO SEE IT UNDERPERFORM A BIT. WE MADE A LOT OF HAY WITH THE AMAZON OFFERING RECENTLY, WHICH GOT A BIT OF A COOLER RECEPTION. WHEN YOU ADD IT ALL TOGETHER, HOW MUCH OF THIS IS JUST THE TECHNICAL FACTOR, THERE IS A LOT OF SUPPLY COMING THROUGH VERSES MAY BE FUNDAMENTAL REASONS BEING BEHIND THIS? NATHANIEL: I THINK THE TECHNICALS ARE EARLY IN THE CHARGE. WHEN YOU THINK OF THE HYPERSCALERS AS A COHORT, THEY ARE TRADING AT 51 40 BASIS POINTS, THE WIDEST THEY HAVE EVER TRADED. THE MARKET OVERALL IS UNCHANGED. SO THEY HAVE UNDERPERFORMED A LOT. THE QUESTION IS, IS THAT JUSTIFIED OR NOT? I THINK INVESTORS HAVE CREATED THIS NARRATIVE, IF YOU WILL, THAT DEMAND, ESPECIALLY FROM INSURANCE COMPANIES, IS ALREADY MAXED OUT, AND YET WE ARE STARING AT, PERHAPS, TRILLIONS MORE. I THINK THAT IS WHERE THERE IS A LITTLE BIT OF UNCERTAINTY. NATHANIEL: LET'S DO SOME MYTH BUSTING HERE. U.S. LIFE INSURERS HOLD ABOUT 25% OF U.S. CORPORATE BONDS. THEY GENERALLY HAVE SINGLE ISSUE WERE LIMITS OF ABOUT 3%. IT SOUNDS LIKE YOUR VIEW IS THAT THEY ARE NOT EXACTLY HITTING THOSE LIMITS YET. NATHANIEL: I THINK INVESTORS LOOK AT THE HIGH-GRADE INDEX AND SEE THESE ISSUERS MOVING UP QUICKLY. THE LARGEST RIGHT NOW, AMAZON, ABOUT 1.5% OF THE INDEX. I THINK FROM THE INSURANCE COMPANY PERSPECTIVE, THE WAY THEY ARE LOOKING AT IT IS AS A PORTION OF THEIR ENTIRE ASSET PIE, NOT JUST THE CORPORATE CREDIT SLICE. SO THAT 1.5% SHRINKS TO SOMETHING A LOT SMALLER WHEN YOU LOOK AT IT FROM THEIR PERSPECTIVE. I DO NOT THINK IT IS A MATTER OF RISK LIMITS, I THINK IT IS, DO I WANT TO LEND TO THIS HYPERSCALER AT THE CURRENT SPREAD, OR AM I BETTER OFF WAITING FOR BILLIONS OR TRILLIONS MORE TO COME, WHICH MAY COME AT WIDER SPREADS? IT IS A DIFFERENT CONSIDERATION. KATIE: RIGHT, SO IF THESE TECHNICAL SORT OF DRAG ON THESE NEW ISSUES CONTINUES, YOU MAY BE BETTER OFF WAITING FOUR MONTHS FROM NOW WHEN THEY TAP THE MARKET AGAIN. NATHANIEL: EXACTLY. WHAT WE HEAR FROM INVESTORS IS, IF ONLY I KNEW THERE WAS GOING TO BE A QUEDENS, I COULD FIGURE THIS OUT. IT IS A LACK OF A QUEDENS, THE UNPREDICTABLE NATURE OF THIS ISSUANCE THAT IS UPSETTING INSURERS. ONCE THEY FIGURE OUT A C ADENCE, I THINK THE MARKET WILL READJUST. KATIE: THE BIG BANKS ISSUE BIG BONDS AFTER EARNING. WHAT WE SEE SOMETHING SIMILAR WHEN IT COMES TO HYPERSCALERS? NATHANIEL: AS TIME GOES ON, WE WILL PROBABLY GET THERE. THE DIFFERENCE WITH THE BANKS, WHEN THEY WERE DOING IT, THERE SPREAD MATTERED A LOT, BECAUSE IT WAS ABOUT 80% OF THEIR COUPON THEY WERE PAYING AT THE TIME, BECAUSE WE WERE IN A ZERO RATE ENVIRONMENT. FAST-FORWARD TO TODAY, IT IS EXACTLY THE OPPOSITE. THEY DON'T NECESSARILY CARE AS MUCH ABOUT WHERE SPREADS ARE AND IF THEY HAVE TO PAY A LITTLE MORE. THEY CARE MORE ABOUT RATES. YOU HAD A RATE RALLY AT THE END OF THE QUARTER, SO SOME HYPERSCALERS LOOKED AT THAT AND SAID THIS IS A GREAT TIME TO FUND, I AM GOING TO HIT THE MARKET EVEN IF IT MEANS THE PRESSURES MIGHT SPREAD SOMEWHAT. THAT DICHOTOMY IS WRITING A LITTLE BIT OF STRESS IN THE INDEX AT THE MOMENT. KATIE: I WANT TO TALK MORE ABOUT CONCENTRATION RISK. WHEN IT COMES TO INSURERS, YOU THINK ABOUT THINGS HOLISTICALLY, MAYBE THAT 1.5 PERCENT WEIGHTING THAT AMAZON HOLDS IS A LOT SMALLER THAN THAT. IF YOU ZOOM OUT AND THINK ABOUT INVESTORS OVERALL, IT FEELS LIKE CONCENTRATION RISK IS BECOMING A CONVERSATION OF CONCERN. THE EQUITY MARKET IS VERY TOP-HEAVY, TECH FOCUSED. THE TECH SECTOR TRADITIONALLY HAS NOT ISSUED THAT MUCH DEBT. THERE HAS BEEN A MASSIVE SEA CHANGE IN JUST THE PAST -- HOW MUCH DO YOU THINK THAT COULD BECOME A FACTOR FOR INVESTORS EVEN IF THEY DON'T HAVE SPECIFIC LIMITS, MAYBE THEY DON'T WANT THIS MUCH ALLOCATION TO ATTACK. NATHANIEL: THAT IS INCREASINGLY A CONSIDERATION. TECH PAST U.S. BANKS. WHEN INVESTORS LOOK AT THAT, IT CAUSES CONSTERNATION AND WHEN THEY TRY TO ASSESS, WHAT IS MY RISK TO AI AS A FACTOR WITHIN MY PORTFOLIO, THAT IS GROWING VERY RAPIDLY. WHAT I WOULD QUESTION THERE IS DOCKED AT WHAT POINT DOES AI BECOME IN -- SO EMBEDDED IN EVERY VERTICAL OF THE ECONOMY THAT YOU NO LONGER LOOK AT IT AS A FACTOR. YOU'RE SIMPLY LONG CREDIT THE WAY FOLKS ARE LONG THE FINANCIALS FOR EXAMPLE. WE ARE NOT THERE YET BUT I THINK WE ARE HEADING IN THAT DIRECTION. WHERE YOU CAN'T IGNORE IT ANYMORE SO IT BECOMES LESS OF A SECTOR UNDERWEIGHT OR OVERWEIGHT THAT I HAVE TO ACTIVELY MANAGE. KATIE: IT IS AN OMNIPRESENT THING. YOU TALKED ABOUT SPREADS IN THE TECH SECTOR STARTING TO WIDEN BUT THE OVERALL MARKET IS UNCHANGED. DO YOU THINK, IN THE MONTHS AHEAD, THAT WE COULD SEE THE WIDENING THAT WE ARE SEEING INTACT MAKE A DIFFERENCE IN THESE BLUE CHECK --BLUE INDEXES? NATHANIEL: THERE IS THE POTENTIAL FOR WEAKNESS. PERHAPS THE REST OF THE MARKET BRIDGES A LITTLE BIT OF THE GAP FOR SCALARS. BY A LARGE, THEY ARE TREATING IT AS TWO SEPARATE MARKETS. I'M TREATING THE HYPERSCALERS HERE AND THE REST OF THE MARKET HERE IS SO THEY DON'T INFORM EACH OTHER THAT MUCH. WE ARE STARTING TO GET TO A ZONE WHERE INVESTORS SEE A LITTLE MORE VALUE PARTICULARLY OF A LONG AND VERSUS THE MUNICIPAL MARKET WERE LONG ENDS ARE TIGHTER BECAUSE THEIR SUPPLY IS DOWN YEAR-OVER-YEAR SO THERE ARE SOME RELATIVE VALUES EMERGING IN THE MARKET BUT WE ARE PERHAPS NOT THERE YET. KATIE: NOT THERE YET. GREAT TO GET SOME TIME WITH YOU. NATHANIEL ROSENBAUM IS OVER AT J.P. MORGAN. NOW, COMING UP, APPLE IS EMERGING AS A SAFE HAVEN AS TECH FACE IS WHAT OUR NEXT GUEST CALLS A LAUNDRY LIST. WE MEET WITH CRAIG MOFFETT. THIS IS "THE CLOSE" ON BLOOMBERG. ♪ KATIE: TIME NOW FOR OUR TOP CALLS FOR A LOOK ON SOME OF THE BIG MOVERS. FIRST UP WE HAVE CIRCLE. MIZUHO OUT WITH A NEW TARGET DOWN TO $50 FROM $85. FROM CUTTING THE STOCK FROM NEUTRAL, RAISING CONCERNS THAT NEW RIVALS COULD WEIGH ON PROFITABILITY OVER THE MEDIUM TERM. SHARES SLIGHTLY DOWN. NEXT IN LINE, FORWARD. J.P. MORGAN RAISING THE PRICE TARGET SAYING EARNINGS SHOULD BEAT ESTIMATES. THE FIRM STAYING OVERWEIGHT THE STOCK FLAGGING LOWER COSTS AND GROWTH IN KEY PARTS OF THE BUSINESS INCLUDING SERVICES. SHARES HIGHER ON A DOWN DAY. AND FINALLY, APPLE. HSBC UPGRADING STOCKS LIFTING THE PRICE TARGET TO 360 SIX DOLLARS. THE FIRM STATING APPLE IS NOW AT AN OPERATIONAL TURNING POINT AND IS WELL-PLACED TO LEVERAGE ITS USER BASE THINGS TO UPCOMING IMPROVEMENTS TO APPLE INTELLIGENCE. SHARES FLAT ON THE DAY. STICKING WITH APPLE, IT IS DUKING IT OUT TODAY WITH NVIDIA AS THEY BOW OUT FOR THE TITLE OF THE WORLD'S MOST VALUABLE COMPANY. JOINING US LIVE IS CRAIG MOFFETT OVER AT MOFFETT NATHANSON AND HE COVERS APPLE WITH A NEUTRAL RATING. GREAT TO HAVE YOU WITH US. IT FEELS LIKE THE STARS ARE ALIGNING FOR APPLE WHICH I THINK IS INTERESTING BECAUSE IT WAS LESS THAN A MONTH AGO WE WERE TALKING ABOUT HOW YOUR MEMORY CHIP COSTS WERE GOING TO DENT DEMAND FOR SMARTPHONES. APPLE CAME OUT AND SAID IT WOULD RAISE PRICES ON MACS, IPADS AND HOME PRICES TO COUNTER THAT MEMORY SHORTAGE BUT THE STOCK HAS BEEN ON A TEAR SINCE. WHAT IS GOING ON? CRAIG: THANK YOU FOR HAVING ME. I THINK WHAT YOU ARE SEEING IS, TO SOME EXTENT, THE REACTION TO THINGS LIKE NVIDIA. THE TWO ARE NOT INDEPENDENT. WHEN YOU SEE VOLATILITY RISE AND THE REST OF THE MAG SEVEN, PARTICULARLY IN THE CHIP AND MEMORY, -- COMPLEX, THE VOLATILITY IS MET WITH AN APPRECIATION OF SAFE HAVENS. AND I'M NOT SURE THAT THE RALLY IN APPLE IS QUITE SO MUCH A REFLECTION OF RISING OPTIMISM FOR THE FUNDAMENTALS AS MUCH AS IT IS THAT IT IS VIEWED AS A MUCH SAFER PLAY AT A TIME OF UNCERTAINTY AROUND THE KIND OF RETURNS YOU WILL GET FROM THE AI TRADE. KATIE: TALK TO US ABOUT WHY IT HAS DEVELOPED THAT SAFE HAVEN QUALITY. WHEN YOU THINK OF THE TURBULENCE UNDERTAKING THE REST OF THE MAG7, WHY DOES APPLE STAND APART FROM THAT NARRATIVE? CRAIG: THE IRONY IS IT IS BEHIND IN AI BUT IT IS BEHIND IN AI BECAUSE IT HAS CHOSEN NOT TO INVEST. IT'S INVESTMENTS TYPICALLY COME MORE IN THE FORM OF R&D THAN IT DOES CAPEX. ITS INVESTMENT IN AI RELATE -- RELATIVE TO ITS MAG7 PEERS IS QUITE MODEST. AND I DON'T THINK ANYONE WOULD ARGUE WITH THE BASIC PREMISE THAT WE ARE STILL GOING TO USE THE SMARTPHONE AS THE PRIMARY DEVICE FOR CONSUMING AI. THERE ARE PLENTY OF PRETENDERS TO THE THRONE AND A LOT OF PEOPLE TALKING ABOUT ALTERNATIVE FACTORS BUT MOST OF THAT FEELS A WAYS AWAY. SO APPLE, IN ONE SENSE, IS INSULATED FROM ALL OF THE DEBATES AROUND AI. IT WILL BE FINE ONE WAY OR ANOTHER WHETHER IT IS USING ITS OWN AI, GOOGLE OR WHETHER PEOPLE CHOOSE TO GO TO A NAP TO OPENAI OR ANTHROPIC. EITHER WAY, IN EITHER OF THOSE OUTCOMES, YOU WILL STILL BE USING YOUR APPLE DEVICE SO APPLE FEELS LIKE A RELATIVELY SAFE CHOICE WHEN YOU DON'T KNOW WHO IS GOING TO WIN THESE REALLY HIGH STAKES AND HIGH WARS. KATIE: AND THE FACT THAT APPLE HAS HELD ITSELF BACK FROM CAPEX WARS REALLY BECOMING A BENEFIT IN THE PAST FEW WEEKS. YOU MENTIONED, YOU THINK ABOUT THE PERFORMANCE FROM APPLE IN THE LAST MONTH, PERHAPS IT HAS MORE TO DO WITH WHAT IS GOING ON WITH THE REST OF THE MAG7 AND APPLE LOOKING LIKE A SAFE HAVEN BUT LET'S TALK ABOUT THEIR FUNDAMENTALS. THEY ARE BEHIND, ARGUABLY, IN THE AI RACE. THERE IS SOME ENTHUSIASM ABOUT APPLE INTELLIGENCE. WE HAVE THE FOLDABLE PHONE COMING UP ON THE HORIZON. WHAT SORT OF CATALYSTS ARE YOU LOOKING AT IN TERMS OF WHAT COULD KEEP THE MOMENTUM GOING? CRAIG: THEY REALLY DO HAVE WHAT SOUNDS LIKE A STRONG PRODUCT PIPELINE COMING. NOT JUST WITH THE FOLDABLE'S WHICH ARE EXCITING BUT EXPENSIVE. BUT THE PRODUCT LINEUP SOUNDS QUITE STRONG. BUT, THINK OF THE CROSSWINDS YOU ARE SEEING. PARTLY BECAUSE OF THE SPARK IN MEMORY -- THE SPIKE IN MEMORY PRICES, THE SMARTPHONE MARKET IS EXPERIENCING A SIGNIFICANT PULLBACK. APPLE IS ALSO PARTICULARLY IN MARKETS LIKE CHINA WHERE SALES ARE BELIEVED TO BE DOWN SIGNIFICANTLY. BUT INTERESTINGLY LESS SO THAN PEERS. IT IS A GOOD NEWS THEY ARE GAINING SHARE OR BAD NEWS THAT VOLUME IS DECELERATING? YOU HAVE THAT PUSH POLL IN ALMOST ALL OF THE ASPECTS OF THE APPLE STORY RIGHT NOW AND IN SOME WAYS THAT IS A GOOD SETUP. THERE REALLY ARE NOT ANY GIANT SURPRISES COMING SO PEOPLE FEEL LIKE IT IS A PLACE THEY CAN PARK WITH SOME CERTAINTY WHILE YOU WAIT TO SEE WHAT HAPPENS WITH SOME OF THE VOLATILITY IN THE REST OF THE MARKET. KATIE: THAT IS CRAIG MOFFETT, SENIOR MANAGING DIRECTOR AND SENIOR RESEARCH ANALYST OVER AT MAFIC -- MOFFETT NATHANSON. WE ARE KEEPING AND I ON APPLE. THE OVERALL MARKET VALUE IS JUST BELOW 4.9 TRILLION DOLLARS, NECK AND NECK WITH NVIDIA. COMING UP, NETFLIX SHARES SINKING AFTER REPORTING A SLOWING GROWTH FORECAST. SIMON GALLAGHER JOINS US NEXT. THIS IS "THE CLOSE" ON BLOOMBERG. ♪ KATIE: NETFLIX SHARES DOWN MIGHTILY AFTER FORECASTING A SECOND STRAIGHT QUARTER OF SLOWED SALES GROWTH. THERE ARE LATER WERE ON EXISTING SHOWS. LET'S IMPACTS A LITTLE BIT OF WHAT IS GOING ON WITH SIMON GALLAGHER, FORM OR CONTENT ACQUISITION EXECUTIVE AT NETFLIX AND HULU, NOW MANAGING DIRECTOR AT SBCGLOBAL. GREAT TO HAVE YOU BACK WITH US. YOU THINK ABOUT WHY NETFLIX IS DOWN 26 PERCENT YEAR-TO-DATE, IT GOES BACK TO THE ENGAGEMENT ISSUE. EXECUTIVES ARE CONCERNED VIEWERS ARE NOT AS ENGAGED WITH THE CONTENT NETFLIX IS PUTTING OUT. I WONDER IF WHEN IT COMES TO YESTERDAY'S FIGURES WHETHER YOU SAW ANYTHING THAT WOULD SUGGEST THOSE FEARS ARE MAY BE OVERBLOWN. >> THE MARKET ALWAYS OVERREACTS TO THIS SORT OF NEWS. THEY POINTED OUT AN INTERESTING POINT ON THE CONFERENCE CALL YESTERDAY THAT SIX OF THE TOP 10 SIGN-UP DAYS OVER THE LAST COUPLE OF YEARS HAVE BEEN TIED TO LIVE SPORTS. THERE IS ENGAGEMENT CHALLENGES AND ENGAGEMENT LEVELING OFF, BUT THEY ARE MEASURING ENGAGEMENT ON NUMBER OF HOURS, NOT NUMBER OF SUBSCRIBERS THAT ARE WATCHING AN INDIVIDUAL PIECE OF CONTENT. CERTAINLY THE EMBRACING OF LIVE SPORTS IS CERTAINLY SOMETHING RESONATING WITH THE SUBSCRIBER BASE GLOBALLY. KATIE: WHAT DO YOU MAKE OF THEIR APPROACH TO LIVE SPORTS? THE WAY THEY ARE INVESTING WITH IT AND APPROACHING IT, IT IS NOT ENOUGH TO GET THE AVID SPORTS FAN, IT'S MORE THE CASUAL SPORTS VIEWER. I WONDER ABOUT HOW YOU ARE POSITIONING THEM -- HOW THEY ARE POSITIONING THEMSELVES IN A VERY COMPETITIVE MARKET. SIMON: IF YOU ARE RIGHT, A VERY COMPETITIVE MARKET. IT IS A BIT OF A TOE IN THE WATER APPROACH, BUT THEY ARE MOVING DILIGENTLY. THEY HAVE AN EXCEPTIONALLY STRONG CORE STRATEGY TEAM THAT WOULD BE AWARE OF THE AUDIENCE FIGURES FOR EVERY SPORTING EVENT AROUND THE WORLD. THEY ARE TRYING TO DO CHERRY PICKING AT THE MOMENT TO WORK OUT WHAT WORKS FOR THEIR AUDIENCE AND THEIR PRODUCTION TEAMS IF THEY NEED TO PRODUCE THE COVERAGE OF THE SPORTING EVENT. IT IS GOING OK AND IMPROVING, BUT IT CERTAINLY HAS A WAYS TO GO. KATIE: ABSOLUTELY. IT WILL BE INTERESTING TO SEE HOW MUCH TRACTION THEY ARE ABLE TO GET. BUT WHEN IT COMES BACK TO THAT ENGAGEMENT QUESTION, I WONDER AT WHAT POINT THIS CHIPS INTO AN ADVERTISING CONVERSATION, BECAUSE THE REALITY -- THE RALLYING CRIES OF PEOPLE STILL BULLISH ON NETFLIX SHARES IS TO TAKE A LOOK AT THEIR ADVERTISING RAMP-UP, THEY PUT OUT THAT $3 BILLION FIGURE THEY ARE ON TRACK TO HIT. THAT OUTWEIGHS THE MORE BULLISH VIEW OF THIS ENGAGEMENT WE ARE TALKING ABOUT. AT WHAT POINT DOES THIS TIP INTO SOMETHING THAT COULD THREATEN THE ADVERTISING BUSINESS? SIMON: THE ADVERTISING BUSINESS LAST YEAR ROUGHLY 1.5 BILLION DOLLARS, ON TRACK FOR $3 BILLION THIS YEAR, STILL SO FAR BEHIND WHERE YOUTUBE IS AT. THERE IS A LOT OF POTENTIAL UPSIDE. I THINK THIS IS WHAT THE MARKET IS NOT GIVING ENOUGH CREDIT TO IN TERMS OF THEIR OPPORTUNITY TO GROW REVENUE NUMBERS DIRECTLY FROM ADVERTISING. WE ALSO SAW SOMETHING LAST MONTH THAT MAY BE DID NOT GET AS MUCH MARKET NOISE AS ANTICIPATED IN TERMS OF SOME OF THE SHORTER FORM CONTENT THAT NETFLIX IS DOING A TOE IN THE WATER APPROACH WITH, PARTNERS LIKE CONDE NAST TO PUT 320 MINUTE CLIPS, ALMOST YOUTUBE TYPE VIDEO AND CONTENT ON THE PLATFORM. THEY ARE STARTING TO LOOK AT ONE OF THEIR CONTENT THEY CAN PROVIDE TO THE 300 MILLION SUBSCRIBERS AROUND THE WORLD. YOU ARE SEEING THAT CREEP TOWARDS YOUTUBE TYPE CONTENT. THE AGREEMENTS THAT CONTENT CREATORS AND SHORT FORM CONTENT CREATORS ARE SIGNING WITH YOUTUBE ARE NOT EXCLUSIVE OF THE MOST PART, SO THERE IS OPPORTUNITY FOR SOME OF THE CONTENT TO BLEED ON TO NETFLIX. THAT IS GOING TO BE AN INTERESTING SPACE TO WATCH IN THE COMING MONTHS. KATIE: I WONDER HOW MUCH OF THAT COMES BACK TO THE FORMFACTOR OF HAVE NETFLIX CONTENT IS CONSUMED. THE POINT HAS BEEN MADE THAT NETFLIX IS LOSING TO YOUR PHONE, THAT A LOT OF PEOPLE ARE CONSUMING SHORT-TERM CONTENT ON YOUR PHONE. FOR THE MOST PART, PEOPLE CONSUME NETFLIX CONTENT ON THEIR TV OR ON THEIR LAPTOP. IT IS NOT NECESSARILY ON THEIR PHONE. I WONDER HOW FAR THAT SORT OF SHORT FORM STRATEGY CAN RUN, GIVEN THAT THEY ARE FIGHTING THE ACTUAL DEVICE HERE. SIMON: ABSOLUTELY, THEY ARE VERY WELL AWARE OF THAT, AND THEY KNOW THEY ARE YOU LOSING THE AUDIENCE DURING THE DAY WHEN PEOPLE ARE AT WORK OR COMMUTING TO WORK. I THINK YOU ARE GOING TO SEE MORE AND MORE SHORT FORM CONTENT. IF THEY GOT TO THE POINT WHERE 50% OF THE CONTENT THAT CURRENTLY SITS ON YOUTUBE, THEY CAN DO THAT. SHORT FORM CONTENT CREATORS WOULD LOVE TO HAVE A SECOND PLACE FOR THEIR CONTENT TO LIVE, WOULD LOVE TO SEE MORE ENGAGEMENT AND NOT GIVE YOUTUBE SO MUCH LEVERAGE OVER THEIR BUSINESSES. I THINK THE CONTENT CREATION COMMUNITY WOULD REALLY EMBRACE A SECOND ALTERNATIVE IN NETFLIX. BUT THEY DON'T WANT TO DILUTE THE SUBSCRIBER REVENUE NUMBER. KATIE: SOMETHING I'M CURIOUS TO GET YOUR THOUGHTS ON, GIVEN YOU WERE FORMERLY HEAD OF CONTENT ACQUISITION OVER AT NETFLIX, IS THE FACT THAT THERE IS THIS SECOND SEASON SLUMP NARRATIVE THAT HAS FORMED AROUND THE COMPANY IN GENERAL, THAT THEY ARE HAVING TROUBLE RETAINING VIEWERS INTO LATER SEASONS OF SHOWS, EVEN IF THE FIRST SEASON IS A SUCCESS BY MOST MEASURES. I WONDER WHETHER YOU THINK THAT NARRATIVE ACTUALLY HAS LEGS, WHETHER THERE IS TRUTH TO IT, AND IF SO, HOW DO YOU COMBAT THAT? SIMON: THEY HAVE TRIED A LOT OF DIFFERENT THINGS ACROSS A LOT OF DIFFERENT GENRES. MAYBE YOU HAVE A SUCCESSFUL SERIES, BUT THE CONTENT CREATORS, THE SHOW RUNNERS DON'T NECESSARILY HAVE A STRONG STORY FOR SEASON TWO. MAYBE THEY WERE NOT PREPARED FOR THAT. AND ALL OF A SUDDEN THEY ARE IN SEASON TWO AND DID NOT EXPECT TO BE IN PRODUCTION AS QUICKLY AS THEY ANTICIPATED. THERE ARE CERTAINLY SOME CHALLENGES, BUT THE MEDIA LIKES TO POINT TO THE NEGATIVITY. THEY ARE NOT TALKING ABOUT THE SHOWS THAT HAVE GONE TO SIX SEASONS OF CONTENT. I THINK THERE IS EVEN ONE AS SEVEN OR EIGHT SEASONS ON NETFLIX. THEY'VE GOT A LOT OF SUCCESSFUL HITS. NOT ALL OF THEM MAKE IT PAST THE SECOND SEASON. I A LOT OF THEM DO LOSE THAT AUDIENCE. BUT WHEN YOU COMPARE THEM TO OTHER MEDIA PLATFORMS, I STILL THINK THEY'VE GOT A STRONG BATTING AVERAGE. KATIE: I WOULD ALSO LOVE TO HEAR YOUR THOUGHTS ON WHETHER OR NOT NETFLIX NEEDS A DEAL AT THIS POINT. THE M&A QUESTION HAS BEEN HANGING AROUND NETFLIX FOR A WHILE NOW. OVER THE PAST YEAR OR SO OR IN THE PAST FEW MONTHS, IT WAS SEEN AS MORE OF A NICE TO HAVE. YOU SAW A LOT OF FOLKS HAPPY THAT THE WARNER BROS. ACQUISITION FELL THROUGH. BUT DO YOU THINK AT THIS POINT, IS A DEAL NEEDED AT NETFLIX? SIMON: I NEVER LIKED THE WARNER BROS. DEAL. I LIKE DEALS LIKE THE LIONSGATE OPPORTUNITY EVEN LESS. THERE'S NOTHING I DON'T THINK THEY CAN CREATE FOR SIGNIFICANTLY LESS MONEY THAN GOING OUT AND DOING ONE OF THOSE ACQUISITIONS. THEY CAN LICENSE THE IP AROUND SOME OF THESE MARQUEE FILMS OR TV SHOWS THAT ARE AT LIONSGATE OR OTHER PLACES. NICE TO HAVE, BUT ABSOLUTELY NOT WORTH IT AT THE PRICE THEY WOULD HAVE TO PAY. I SUSPECT THEY ARE PROBABLY LOOKING AT SOME SPORTS LEAGUES. THAT MIGHT BE SOMETHING THEY COULD ACQUIRE, AN ENTIRE LEAGUE, BUT THAT WOULD BE SIGNIFICANTLY LESS COST. I THINK YOU WILL SEE THEM CONTINUE TO FOCUS ON, HOW CAN WE PULL SOME OF THAT $60 BILLION IN ANNUAL REVENUE GOING TO YOUTUBE, HOW CAN WE BRING THAT ACROSS AND RAISE THE 2 BILLION NUMBER AT NETFLIX? -- THE 3 BILLION NUMBER AT NETFLIX? KATIE: SIMON, THANK YOU. STILL AHEAD, WE WILL TALK ABOUT YUM! BRANDS FALLING ON A PARASITE OUTBREAK TIED TO PRODUCE. WE WILL UNPACK ALL OF THE ACTION UP NEXT. THIS IS "THE CLOSE" ON BLOOMBERG. ♪ KATIE: OUR STOCK OF THE HOUR TODAY IS YUM! BRANDS. SHARES OF THE TACO BELL PARENT DOWN ABOUT 2% WITH U.S. REGULATORS NOW LINKING THE SPREAD OF A PARASITE OUTBREAK TO SHREDDED ICEBERG LETTUCE. MICHAEL, IT IS GREAT TO HAVE YOU WITH US. YOU THINK ABOUT THE MOVEMENT WE HAVE SEEN IN SHARES IN A LOT OF THESE DIFFERENT SALAD CHAINS. WE KNOW THAT SWEET GREENS HAS HAD A VOLATILE WEEK. WHAT DO YOU THINK THIS MEANS FOR LONG-TERM OR MEDIUM-TERM IF YOU MAP OUT THE DIFFERENT SCENARIOS? >> LONG-TERM IS KIND OF MUCH TO DO ABOUT NOTHING. WE ARE NOT WORRIED ABOUT THE FREAK OUT THIS WEEK. WE THINK A 10% DECLINE IN YUM! BRANDS SHARES KIND OF SETS IT UP FOR A NICE BUYING OPPORTUNITY WITH THE SALE OF PIZZA HUT. THEIR TOP AND BOTTOM LINE GROWTH IS GOING TO GROW NICELY OVER THE NEXT 12 MONTHS OR SO. IN THE SHORT TERM, COULD THERE BE A MINOR SALES LOSS HERE IN THE THIRD QUARTER? POTENTIALLY. BUT THE LAST SITE WITH AN OUTBREAK WE KNOW OF WAS MCDONALD'S IN 2018. IT HAD AN OUTBREAK THAT HOSPITALIZED 24 PEOPLE, INFECTED OVER 500. THEIR SALES WERE NOT IMPACTED MUCH AT ALL. IN THIS CASE FOR A FEW REASONS, WE EXPECT ANY IMPACT TO BE SHORT-LIVED. FIRST OF ALL, CYCLOSPORA IS NOT FATAL LIKE E. COLI. IT WAS DUE TO THE SUPPLIER AND NOT DUE TO FOOD HANDLING ISSUES AT TACO BELL. AND LET US IS NOT MEANINGFUL FOR THEIR SALES. FOR THOSE REASONS, WE THINK IT IS LARGELY OVERBLOWN. WE DON'T COVER SWEET GREEN, BUT THEY SELL A LOT OF LETTUCE, SO IF PEOPLE PULL BACK ON THEIR LETTUCE PURCHASES, ON THEIR SALAD PURCHASES, THAT IS GOING TO HURT THEM IN THE THIRD QUARTER. KATIE: KATIE: I WAS GOING TO ASK YOU WHAT GIVES YOU THE CONFIDENCE TO SAY THAT BECAUSE WE HAVE HEARD FROM THE FDA TELLING BLOOMBERG NEWS, WE DON'T HAVE ANY FOODS THAT FOLKS SHOULD AVOID AT THIS POINT BUT WE ANTICIPATE CONTINUING TO SEE CASES INCREASE POSSIBLY THROUGH THE END OF AUGUST. IT SOUNDS LIKE BUT YOU ARE SAYING IS IF YOU LOOK AT PREVIOUS OUTBREAKS THAT THIS PROVIDES SOME SORT OF ROADMAP HERE. MICHAEL: THIS IS VERY DIFFERENT FROM SOMETHING LIKE NOROVIRUS WHICH SHOWS UP VERY QUICKLY. CYCLOSPORA SOMETIMES TAKES TWO WEEKS TO SHOW UP AND TO HAVE A DIAGNOSIS. AND THE ABSOLUTE NUMBERS ARE PRETTY SMALL. WE ARE TALKING ABOUT I THINK 1600 CASES DUE TO TACO BELL COMPARED TO SOME OF THE NUMBERS WE HAVE SEEN IN THE PAST. IT IS HIGH BUT IN TERMS OF ABSOLUTE NUMBER, IT IS NOT THAT HIGH. LIKE I SAID, IT HAS NOT BEEN AN ISSUE FOR RESTAURANT CHAINS IN THE PAST AND WE DON'T EXPECT THERE TO BE ONE HERE. KATIE: MICHAEL HALEN, GREAT TO GET SOME CONTEXT AND PERSPECTIVE FROM YOU, OUR SENIOR RESTAURANT ANALYST FROM BLOOMBERG INTELLIGENCE TALKING US THROUGH SOME OF THE MOVEMENT WE HAVE SEEN IN THE SALAD STOCKS THIS WEEK AS WE CONTINUE TO ATTRACT A PARASITE. THE BROADER MARKET, THE S&P 500 DOWN ABOUT 1% AS WE TRY TO CLOSE OUT THE BOOKS ON THIS WEEK. THE SELLOFF IN TECH DRAGGING EVERYTHING DOWN. WE WILL BREAK DOWN ALL OF THE ACTION NEXT WITH THE FOUNDER AND CHIEF INVESTMENT OFFICER OVER AT BOKEH CAPITAL PARTNERS. THIS IS "THE CLOSE" ON BLOOMBERG. ♪ KATIE: WELCOME BACK TO "THE CLOSE." LESS THAN 10 MINUTES AWAY FROM THE CLOSING BELLS ON THIS FRIDAY AND HERE IS WHERE WE STAND. NOT TOO PRETTY. THE S&P 500 DOWN ABOUT .9 PERCENT. AND THE NEXT TWO LINES TELL THE STORY. THE NASDAQ 100 OFF BY ABOUT 1.3 PERCENT. THE BIG TECH NAMES COMING UNDER PRESSURE AS ARE THE CHIPMAKERS AS MEASURED BY THE PHILADELPHIA SEMICONDUCTOR INDEX DOWN ABOUT 1.1% AT THE MOMENT. THIS WAS THE HOT SPOT IN THE MARKET FOR QUITE A WHILE NOW BUT WE HAVE STARTED TO SEE THAT REVERSE AND START TO CRUMBLE IN THE LAST FEW WEEKS. TAKE A LOOK AT BRENT. A BIG GEOPOLITICAL WEEK WHEN WE TRACK WHAT IS GOING ON BETWEEN THE U.S. AND IRAN. BRENT TRADING AT 87 .62 DOLLARS. HIGHER BY 4% ON THE WEEK. LET'S TRY TO MAKE SENSE OF SOME OF THE ACTION WITH KIM FROM BOKEH CAPITAL PARTNERS JOINING US ON THIS FRIDAY. GREAT TO SEE YOU. LET'S UNPACK BUT WE ARE SEEING. YOU THINK ABOUT WHERE THE WEAKNESS IS IN THE MARKET. IT IS COMING FROM THE MARKETS THAT HAVE SPENT A LOT OF MONEY ON THIS AI BUILDOUT AND THE COMPANIES WHERE THE MONEY HAS BEEN FUNNELED TO COME OF THE CHIPMAKERS. WHEN YOU ADD IT ALL, IT IS THIS ROTATION, DOES THAT HAVE LEGS OR IS IT JUST STRANGE SUMMER TRADING? KIMBERLY: LET'S SEE, I THINK IT IS A LITTLE BIT OF BOTH BUT MOSTLY STRANGE SUMMER TRADING AND HERE IS WHY. IF YOU LOOK AT HOW THE HOT SEMICONDUCTOR STOCKS TRADED IN THE LAST QUARTER, IT WAS CRAZY. CRAZY HOT. YOU COULD NOT PAY HIM ENOUGH FOR MICRON, YOU COULD NOT PAY ENOUGH ARE A LOT OF STOCKS. YOU JUST WANTED TO OWN THEM, WHOEVER THAT TRADER WAS. AND NOW NOBODY SEEMS TO WANT TO OWN THEM. THEY HAVE COME BACK VERY QUICKLY. A LITTLE BIT BECAUSE OF SOME INFORMATION THAT CAME OUT OF CHINA BUT THEN ALSO, EARLIER THIS WEEK, IBM'S BIG ANNOUNCEMENT HAD A LOT TO DO WITH THE CHILLINESS, I WILL SAY, AROUND AI. BUT ESPECIALLY TODAY, YOU CAN TELL THAT THERE ARE LIKE 10 PEOPLE ON THE TRADING DESKS AND THAT IS IT. THERE ARE 10 OF US THERE AND IT IS BECAUSE IT IS WEIRD TODAY. KATIE: JUST JUDGING BY THE COMMUTE THIS MORNING. IT WAS SPARSE ON THE RAILS. LET'S TALK ABOUT THE AI NEWS OUT OF CHINA, THE NEW AI MODEL COMING FROM MOON SHOT. SAID TO RIVAL THE BEST OFFERINGS FROM OPENAI AND ANTHROPIC. A BIG REASON WHY YOU ARE SEEKING NVIDIA COME UNDER PRESSURE SINCE THOSE COMPANIES USE THOSE CHIPS. IT FEELS LIKE A MINI DEEPSEEK MOMENT. THE EXISTENTIAL QUESTION IS THAT HEAVY SPENDING WE ARE SEEING ON AI, ARE WE BASICALLY OVERSPENDING? KIMBERLY: I'M SURE WE ARE, IT IS A MATTER OF MAGNITUDE. BUT THE TREMORS THAT COME OUT OF CHINA, A LOT OF THEM ARE SEEN STEALING MINOR PLAYER IS WALKING THROUGH. WHY DO I SAY THAT? THERE ARE PEOPLE USING DEEPSEEK BUT I'M PRETTY SURE THAT PALANTIR AND OTHER COMPANIES GETTING PEOPLE TO PAY ACTUAL MONEY FOR ACCESS TO THE WESTERN MODELS, WE WILL CALL THEM, ARE UNWILLING TO TRADE THEIR COMPANY INFORMATION AND PUT IT IN THE HANDS OF, WELL, PEOPLE THAT HAVE A HISTORY OF NOT BEGETTING QUITE HONORABLE WITH OTHER PEOPLE'S DATA, WE WILL SAY. DATA IS REALLY IMPORTANT. AND I THINK AT THE END OF THE DAY, IT IS AN ISSUE. WHETHER OR NOT THIS MODEL WILL HOLD UP, AND AGAIN, HAS CHINA SOMEHOW SUPPLANTED NVIDIA IN MAKING THE FASTEST CHIP? WE WILL NOT KNOW FOR A WHILE. I HAVE A FEELING THERE IS PROBABLY A GOOD NUMBER OF NVIDIA CHIPS FLOATING AROUND IN CHINA, PERHAPS. THIS IS A LOT OF NEWS THAT PEOPLE ARE REACTING TO THAT DON'T NECESSARILY HAVE HARD FACTS SET TO IT. KATIE: WE WILL HAVE TO SEE HOW FOLKS DIGEST THIS ON MONDAY. YOU THINK ABOUT SOME OF THE SINGLE STOCK STORIES WE HAVE SEEN THIS WEEK. IT IS NOT JUST THE CHIPMAKERS. YOU THINK ABOUT IBM, FOR EXAMPLE. IT WAS INTERESTING, THE IDEA THAT THEIR CUSTOMERS ARE BASICALLY SHIFTING SPENDING AND THEY HAVE TO PAY UP FOR SERVERS AND NOT AS INTERESTED IN IBM AND WHAT PRODUCTS THEY HAVE DOES SELL. I WONDER IF WE WILL SEE MORE OF THOSE TYPES OF STORIES AS WE GET DEEPER INTO THE EARNINGS SEASON. KIMBERLY: I THINK WE WILL AND PEOPLE WILL GO AND SAY, MY GOSH, THIS IS THE DOTCOM COLLAPSE ALL OVER AGAIN. IT IS KIND -- IT KIND OF IS AND IT KIND OF IS AND ONE REASON IS THERE ARE NOT A LOT OF COMPANIES IN THE ENTERPRISE SPACE THAT DOMINATE LIKE IBM DOES. THEY OWN THE GLOBAL 2000, THE 2000 LARGEST FIRMS IN THE WORLD USE THEM. I THINK WE ARE MAKING A MISTAKE TO THINK THE GLOBAL 2000 WILL CONTINUE TO SPEND IN THE REGULAR AI DEPARTMENT JUST LIKE NORMAL AND ADD AI SPENDING TO IT. AND I THINK THAT IS A REALLY BAD IDEA. AND IBM IS GOING TO HAVE TO TALK ABOUT THAT NEXT WEEK, ABOUT WHERE THE SPEND IS COMING. IS IT GOING AWAY FROM IBM? OR ARE THEY DELAYING AND THEY WILL ROLL OUT THERE AI OFFERINGS THROUGH IBM? I THINK THAT IS A REALLY BIG QUESTION. KATIE: A GOOD POINT. IT WILL BE INTERESTING TO SEE WHAT ADDITIONAL DETAIL WE GOT NEXT WEEK WHEN THEY DO REPORT EARNINGS. THEY WORK PRETTY RELEASING THE BAD INFORMATION AND WE SAW THE STOCK REACT WHEN YOU THINK OF SOME OF THE LEVELS WE HAVE REACHED. WHEN YOU THINK OF THE VOLATILITY ON THE DISPERSION UNDER THE HOOD ON THE INDEX, ARE YOU SEEING BARGAINS OPEN UP? AND IF SO, WHERE ARE YOU PICKING YOUR SPOTS? KIMBERLY: I AM SEEING BARGAINS. WHEN NEW ACCOUNTS COME ON, I WASN'T BUYING THEM WHEN EVERYTHING WAS PRICED UP, WE WILL SAY SO I'M BEGINNING TO SEE WHERE THESE DRAMS ARE SETTLING IN. AND ONE I THINK I CAN TALK ABOUT THAT I'M LOOKING AT AND I OWNED FOR SOME ACCOUNTS, NOT ALL IS SYNOPSIS. ARE WE NEVER GOING TO DESIGN ANOTHER CHIP AGAIN? APPARENTLY, THAT IS WHAT PEOPLE THAT SELL THAT COMPANY IN CADENCE ARE THINKING AND I THINK THAT IS PROBABLY NOT A GREAT IDEA. KATIE: SYNOPSIS IS ON YOUR WATCHLIST. WHAT AREAS OF THE MARKET DO YOU THINK THE PRESSURE IS JUSTIFIED? WHERE WOULD YOU BE STAYING AWAY FROM FORECASTING A SKEPTICAL EYE AT? KIMBERLY: THE MEMORY STOCKS. THEY FLEW UP EARLIER THIS YEAR, SO FAR, SO FAST. IT IS UNCLEAR THE TRUE DEMAND. NOT ALL MEMORY STOCKS ARE CREATED EQUAL. MICRON CREATES DIFFERENT PRODUCTS THAN SANDISK AND SK HYNIX. YOU HAVE TO BE VERY DISCRIMINATE ABOUT BUYING IN THAT AREA. IT IS JUST REALLY A VERY COMPLICATED AREA SO YOU HAVE TO GET YOUR ENGINEERING HAT ON AND TAKE A LOOK AND SEE WHO MIGHT BE WORTH WHAT THEY ARE CURRENTLY AT. AND I THINK THAT IS TRUE OF ALL TECHNOLOGY. YOU CANNOT INDISCRIMINATELY BIONTECH. YOU MUST UNDERSTAND WHAT YOU ARE BUYING AND WHERE IT FITS IN THE ROLE OF A GUY. KATIE: THE OBVIOUS QUESTION BEFORE YOU GO, YOU THINK OF THE SK HYNIX U.S. LISTING JUST A WEEK AGO. IS IT POSSIBLE WE LOOK BACK AND SAY, THAT IS THE MOMENT THE BUBBLE BURST? KIMBERLY: COULD BE. IT REALLY LOOKS LIKE THAT COULD HAVE BEEN THE MOMENT, RIGHT? AND AGAIN, IS IT JUST FOR THE BROAD MAKERS OF RAM AND D-RAM, OR IS IT JUST SPECIFIC AREAS? ONLY SIX MONTHS WILL TELL. WE CAN LOOK BACK AND SAY, THAT IS WHAT HAPPENED. KATIE: ALWAYS GREAT TO TALK TO YOU. THAT IS THE FOUNDER AND CHIEF INVESTMENT OFFICER OVER AT BOKEH CAPITAL PARTNERS. WE ARE COUNTING DOWN TO THE CLOSING BELLS. WE HAVE ABOUT 30 SECONDS TO GO INTO WE CLOSE THE BOOKS ON A DOWN WEEK FOR THE S&P 500. LOOKS LIKE WE WILL FINISH DOWN .9%. OFF SESSION LOWS BUT A BIG CHUNK OF THE INDEX TAKEN OUT ON THIS SUMMER OR FRIDAY. MEANWHILE, TAKE A LOOK AT THE NASDAQ. DOWN BY ABOUT 1.4%. THE DOW RELATIVELY OUTPERFORMING, DOWN ABOUT .8 PERCENT. YOU THINK OF THE BREAKDOWN OF THE S&P ABOUT 140 NAMES FINISHING IN THE GREEN. A LOT OF STOCKS MOVING TO THE DOWNSIDE. MORE THAN 350 NAMES, TO BE EXACT. NVIDIA TAKING THE BIGGEST CHUNK OUT OF THE INDEX. YOU LOOK AT THE SECTOR BREAKDOWN AS WELL, BECAUSE IT IS REALLY INTERESTING. WE WERE TALKING ABOUT THAT BAD BREATH EXTENDING TO THE SECTOR LEVEL. YOU CAN SEE A BUNCH OF RED ON THE SCREEN BEFORE YOU RIGHT THERE. ONLY ONE SECTOR MANAGED TO ACTUALLY FINISH IN THE GREEN TODAY. THAT WAS ENERGY, HIGHER BY ABOUT 1.2%. EVERYTHING ELSE FINISHING THE DAY WITH LOSSES, LED BY COMMUNITIES -- COMMUNICATION SERVICES. CONSUMER DISCRETIONARY SHARES DOWN ABOUT 1.6%. LET'S BREAK DOWN THIS MARKET ACTION WITH MICHAEL BALL. YOU ARE IN THE OFFICE ON THIS FRIDAY, JULY 17. I WANT TO START WITH YOU, MICHAEL. YOU THINK ABOUT WHAT HAS DEVELOPED WHEN IT COMES TO MOMENTUM, AND THE HIGHEST FLYERS TAKING THE MARKET DOWN WITH THEM. WHAT ARE YOU SEEING WHEN YOU LOOK UNDER THE HOOD? >> MOMENTUM, THE GO TO BASKET RIGHT NOW IS DOWN OVER 30% SINCE ONLY A COUPLE WEEKS AGO. TODAY WAS INTERESTING. IT WAS DOWNRIGHT OUT OF THE OPEN. IT CAME BACK POSITIVE. EVENTUALLY, OIL RISING, THE EVENTUAL RISK OFF TONE, AND IT HIT THE RED TO END THE DAY. A POSITIVE DEVELOPMENT. A BIT OF A CAPITULATION. OPTION EXPIRATION DAY, SO MAYBE SOME POSITIONING CLEARED. NEGATIVE POSITIONING, ESPECIALLY IN AI CAPEX. SOME OF IT MIGHT HAVE COME OFF. WE WILL HAVE TO SEE THE NEW POSITIONING OR WHAT THE MONDAY DATA LOOKS LIKE. KATIE: TALK A LITTLE BIT ABOUT POSITIONING. I KNOW YOU HAVE BEEN TRACKING MICHAEL HARDEN OVER AT BANK OF AMERICA. IT SOUNDS LIKE BASICALLY THINGS WERE LOOKING TO BULLISH. THE RUBBER BAND HAD TO SNAP AT SOME POINT. >> THERE IS A BILL -- GOAL/BOW INDICATOR THAT IS PRETTY WIDELY FOLLOWED. IT HAS BEEN ABOVE THAT EIGHT LEVEL, WHICH HAS BEEN MORE EXTREME POSITIONING, SINCE MID-MAY. IT HAS BEEN A COUPLE OF MONTHS SINCE YOU HAVE SEEN THAT. ALSO, THE S&P 500, DESPITE THE ROTATION IN CHIP STOCKS, ONLY 2% OFF ITS ALL-TIME HIGH. THE NASDAQ 100 IS ABOUT 6.5 PERCENT FROM ITS RECORD. IN JUNE, THE STOCKS DOWN 20% FROM THAT RECORD HIGH ON JUNE 22. YOU SAW SOME BRIGHT SPOTS AMONG CHIPMAKERS LIKE SKY WORKS. APPLE IS ONE OF ITS BIGGEST CUSTOMERS. YOU SEE APPLE HIGHER. STILL THAT ROTATION GOING ON. PEOPLE ARE MORE FOCUSED ON MICRO RIGHT NOW, HEADING INTO EARNINGS NEXT WEEK, WITH GOOGLE AND TESLA AND INTEL. RATHER THAN THE MACRO. KATIE: NEXT WEEK IS CERTAINLY GOING TO BE JAM PACKED. IT IS GOING TO BE INTERESTING TO SEE HOW THIS LANDS IN THE MIDST OF THIS ROTATION. YOU THINK ABOUT WHAT WE ARE SEEING JUST IN THE AI TRADE. YOU HAVE THE HYPERSCALERS FALLING, THE CHIP STOCKS FALLING. A LOT OF IT TRACES BACK TO THAT CONVERSATION. >> THESE HAVE BEEN THE WINNERS FOR MOST OF THE YEAR. THE INFLATION DATA TOOK IMMEDIATE FED FEARS OFF THE TABLE, WHICH HELPED. ALL EYES STILL ON OIL. MANY DE-RISK INTO THE WEEKEND. WE DON'T KNOW WHAT EVENTS ARE GOING TO COME. THE MACRO BACKDROP HAS BEEN GOLDILOCKS. WE DON'T HAVE TOO HIGH INFLATION. GROWTH IS NOT GOING TO FORCE THE FED'S HAND. THAT CAN LEAD TO MORE CYCLICAL PARTS, WITH THE AI TRADE HOLDING UP DURING THE IRAN WAR BETTER THAN MANY EXPECTED. THINGS GOT STRETCHED IN ONE TRADE, AND THAT IS BROADENING ANOTHER TRADE. KATIE: I WAS JOKING THAT MAY BE WE WILL LOOK BACK AT THAT MOMENT AND SAY THAT IS WHEN THE MEMORY BUBBLE BURST. BUT YOU THINK ABOUT SPACEX, FOR EXAMPLE. THE SUPERLATIVES WE ARE GETTING THERE. WORKING ON A TRILLION DOLLARS IN VALUE. IT FEELS LIKE A LOT OF THAT ENTHUSIASM IS BEING DRAINED RIGHT NOW. >> NOT EVEN JUST WITH SPACEX. WE WERE TALKING ABOUT THAT BRIEF DROP BELOW THE PRICE LEVEL -- IT STILL CLOSED UP ABOVE THAT, AROUND 154. BUT EVEN IF YOU LOOK AT SOME OF THE RISKS A FEW MONTHS AGO WITH SOME OF THE SMALLER ONES, THEY STILL ARE TRADING BELOW WHERE THEY ENDED UP GOING PUBLIC. THAT IS INTERESTING, JUST WATCHING THE DYNAMIC OF A LOT OF THE EXCITEMENT FOR A LOT OF THESE AI-RELATED TYPE NAMES COMING TO THE MARKET, BUT A LOT OF THEM UNDERPERFORMING RECENTLY. KATIE: GREAT TO WALK THROUGH SOME OF THE ACTION WITH YOU ON THIS FRIDAY. IT WAS A TURBULENT WEEK. I'M GLAD TO SAY THE MARKETS ARE OFFICIALLY CLOSED. MICHAEL AND JESS TALKING US THROUGH SOME OF THE DAY'S BIGGEST MOVES. COMING UP, WE ARE GOING TO SWITCH GEARS AND TALK ABOUT THE BUSINESS OF THE WORLD CUP. WE WILL SPEAK WITH THE BET MGM CEO ON WHAT WE HAVE SEEN DURING THE TOURNAMENT. THAT CONVERSATION COMING UP NEXT. >> THE COUNTDOWN IS ON. EVERYTHING YOU NEED TO GET THE EDGE AT THE END OF THE MARKET DAY. THIS IS THE CLOSE. KATIE: WELCOME BACK. LET'S TAKE A AT WHEN MARKETS CLOSED OUT ON THIS FRIDAY. THE FINAL TRADING DAY OF A VERY VOLATILE WEEK. YOU CAN SEE THE S&P 500 FINISHING ABOUT 1% LOWER. A LOT OF THAT WEAKNESS COMING THROUGH WHEN IT COMES TO BIG TECH, AS MEASURED BY THE NASDAQ 100, OFF ABOUT ONE POINT 5%. PHILADELPHIA SEMICONDUCTOR REALLY SOLD OFF HARD INTO THE CLOSE JUST IN THE FINAL FEW MINUTES OF TRADING, FINISHING THE DAY DOWN ABOUT 1.6%. OFFICIALLY ENTERING A BEAR MARKET, MEANING IT IS NOW DOWN ABOUT 20% FROM ITS PEAK. IT HAS BEEN VERY VOLATILE ON THE WAY THERE. INTERESTING TO SEE HOW THAT SORT OF SHAPES UP AS WE GET INTO MAY BE A LITTLE BIT OF HEAVIER VOLUME NEXT WEEK IN EARNINGS SEASON. AND KEEPING AN EYE ON WHAT IS GOING ON WITH COMMODITIES. THE PRINT HIGHER BY 4.4%, JUST BELOW $88 A BARREL FOR BRENT. TAKE A LOOK AT THE BIGGEST INDIVIDUAL MOVERS ON THE STOCK LEVEL. APPLE HIGHER BY ABOUT A 10TH OF A PERCENT, NET AND NECK WITH NVIDIA FOR THE WORLD'S MOST VALUABLE COMPANY. BOTH OF THEM WITH MARKET CAPS JUST BELOW $5 TRILLION. SPACEX OFFICIALLY RAISING OVER A TRILLION DOLLARS IN MARKET VALUE FROM ITS OWN PEAK, DOWN ABOUT 5.4% TODAY. NETFLIX MANAGING THIS FRIDAY LOWER BY ABOUT SEVEN POINT 3% AFTER THE REPORT YESTERDAY. LET'S GET TO OUR TOP STORY THIS HOUR, AND IT IS A FUN ONE. AS THE WORLD CUP HEADS INTO ITS FINAL WEEKEND, THE BUSINESS OF SOCCER IS REACHING NEW HEIGHTS. WE WILL BREAK DOWN THE NUMBERS FROM RECORD-SETTING VIEWERSHIP AND THE BILLIONS OF DOLLARS WAGERED ON THE MATCHES, TWO OTHER CHALLENGES. ORGANIZERS THAT ONE BIG ON THE WORLD'S BIGGEST STAGE. FOR THE SPECIAL EDITION OF THE CLOSE, THE BUSINESS OF THE WORLD CUP, I'M JOINED BY RANDALL WILLIAMS, BLOOMBERG'S SENIOR SPORTS REPORTER AND COHOST OF THE BUSINESS OF SPORTS PODCAST. YOU THINK ABOUT THE NBA FINALS, THE WORLD CUP. WHAT A SUMMER YOU MUST BE HAVING. >> I CANNOT TELL YOU WHERE I WAS THREE OR FOUR DAYS AGO. DID YOU GO HERE? DID YOU GO THERE? I WAS IN LAS VEGAS, BUT I CAN'T TELL YOU. >> ON SUNDAY, I KNOW YOU ARE GEARING UP TO BE AT THE NEW YORK-NEW JERSEY STADIUM. >> YOU ARE NOT CALLING IT METLIFE. >> IT IS METLIFE TO ME AND PROBABLY TO EVERYONE ELSE WATCHING RIGHT NOW. TALK TO US ABOUT THE MATCHUP IN THE ANTICIPATION BEHIND SEEING ARGENTINA VERSUS SPAIN. >> IF YOU ARE ADIDAS, YOU COULD NOT ASK FOR MORE. LIONEL MESSI HAS BEEN YOUR BIGGEST ATHLETE OVER THE LAST 20 YEARS. AND THEN YOU HAVE MARMOL, WHO IS BASICALLY A PRODIGY IN SOME ASPECT. THERE ARE SO MANY DIFFERENT STORYLINES. MESSY PLACE FOR BARCELONA, WHICH IS IN SPAIN. IF YOU ARE A SPANIARD, IT HAS TO BE WRENCHING, BECAUSE YOU ARE ROOTING FOR A TEAM, BUT MESSY WAS YOUR HERO FOR SO MANY YEARS. I THINK I AM LOOKING AT THE GAMETIME APP RIGHT NOW. THERE IS A 34,000 DOLLAR TICKET. THE CHEAPEST TICKETS -- TICKET IS 8300 $79. THERE ARE SO MANY THINGS YOU COULD SPEND YOUR MONEY ON. THAT IS INCREDIBLE. KATIE: IT IS HIGH PRICES, AND NOT JUST AN AMERICAN AUDIENCE. ALL THE PEOPLE FROM AROUND THE GLOBE WHO HAVE TRAVELED HERE -- IT WILL BE INTERESTING TO SEE THE BREAKDOWN BETWEEN INTERNATIONAL FANS AND LOCALS. >> I THINK A BIG PORTION OF THE AMERICANS THAT ATTEND WILL BE CELEBRITIES OR CORPORATE SPONSORS. I THINK THE ARGENTINIANS WILL TRAVEL INCREDIBLY WELL. WE WERE IN THE OFFICE WHEN ARGENTINA PLAYED ENGLAND. YOU COULD HEAR ON THE BROADCAST THE CROWD NOISE. UNLIKE ANYTHING I HAVE HEARD OUTSIDE OF WHEN THE FALCONS ARE PLAYING AT MERCEDES-BENZ STADIUM. I THINK THE ARGENTINIANS ARE GOING TO TAKE OVER. I DON'T KNOW THAT THAT IS GOING TO TRANSLATE ONTO THE FIELD. KATIE: I LIVE IN HOBOKEN AND I WILL BE INTERESTED TO SEE WHETHER I CAN HEAR THE CHEERING FROM THERE. HOBOKEN IS GOING TO BE ROCKING. BUT JOINING US NOW IS THE MAN ON THE CALL FOR 14 OF THE TOURNAMENT'S MATCHUPS. HE IS TELEMUNDO'S PLAY-BY-PLAY ANNOUNCER. YOUR VOICE IS FAMOUS. I'M NOT GOING TO IMITATE THE GOAL, THAT EVERYONE KNOWS IT. THIS IS YOUR 10TH WORLD CUP TOURNAMENT THAT YOU ARE CALLING MATCHES FOR. IT IS YOUR 11TH YOU HAVE COVERED AS A REPORTER. TALK TO US ABOUT HOW THE EXPERIENCE HAS BEEN. YOU HAVE CALLED 14 OF THE MATCHES SO FAR. I KNOW SUNDAY IS GOING TO BE A BIG DAY AS WELL. >> IT IS GOING TO BE A VERY BIG DAY. BUT CAN YOU GET ME ONE OF THOSE PASSES? I NEED TWO. [LAUGHTER] THAT IS HOW CRAZY THIS FINAL OF THE WORLD CUP HAS BEEN. WE HAVE THE BEST TWO TEAMS IN THE TOURNAMENT, THE TWO BEST TEAMS IN THE WORLD. THE EUROPEAN CHAMPION. THE SOUTH AMERICAN CHAMPIONS. ALL THE STORYLINES. ARGENTINA DEFENDING THE WORLD TITLE IN BACK TO BACK FINALS. IT DOES NOT GET ANY BETTER THAN THIS. KATIE: WHAT DO THE NEXT FEW DAYS LOOK LIKE FOR YOU? THERE WAS REPORTING BY USA TODAY THAT YOU NEARLY LOST YOUR VOICE ON ARGENTINA'S WINNING GOAL VERSUS ENGLAND. HOW DO YOU PREP FOR AN EVENT LIKE THAT? I HAVE TO IMAGINE MILLIONS AND POTENTIALLY BILLIONS OF PEOPLE WILL BE WATCHING. >> THERE IS OBVIOUSLY A LOT OF PRESSURE. WE HAVE BEEN HAVING RECORD RATINGS IN TELEMUNDO, AND WE EXPECT THAT THIS FINAL WILL BREAK RECORDS. I KNOW THE RESPONSIBILITY THAT I WILL HAVE ON THE CALL. TOMORROW, I WILL PROBABLY CALL IT A DAY AROUND 3:00 OR 4:00 P.M., JUST LOCK MYSELF IN THE HOTEL AND PREPARE MYSELF THE LAST NOTES THAT I HAVE. I KNOW THE TEAMS SO WELL. IT IS GOING TO BE A VERY EVEN FINAL. IT IS LIKE NVIDIA. KATIE: NOW I GET IT. ADAM: THIS IS THE SECOND TIME NORTH AMERICA HAS HOSTED THIS. WHAT HAVE YOU SEEN, AND THE DIFFERENCE BETWEEN THE 1994 WORLD CUP AND THE 2026 ONE? >> THE FANDOM, DEFINITELY. I REMEMBER THE 1994 WORLD CUP. SOCCER WAS KIND OF A NOVELTY FOR MANY OF THE PEOPLE THAT WENT TO THE STADIUM. NOW, WE HAVE RECORD ATTENDANCE NUMBERS. SIX AND A HALF MILLION PEOPLE WATCH THE GAMES. THEY CAME FROM ALL OVER THE WORLD. THEY CAME FROM ALL OVER THE UNITED STATES TO SUPPORT THEIR TEAMS. THE FANDOM IN THIS COUNTRY IS ALIVE AND WELL. WE DON'T NEED TO COMPARE SOCCER TO ANY OF THE OTHER LEAGUES. SOCCER IS DOING FINE. THE U.S. NATIONAL TEAM, BOTH MEN'S AND WOMEN'S. IT HAS BEEN A GREAT SUMMER FOR SOCCER IN OUR COUNTRY. >> WHICH CITY THAT YOU TRAVELED TO HAD THE BIGGEST CROWD PRESENTS WHERE YOU WERE LIKE, I CANNOT EVEN HEAR MYSELF THINK? WHICH CITY? CRITICS I WAS VERY IMPRESSED WITH SEATTLE. I WOKE UP AT THE END OF THE AND SAID, WHERE AM I? SEATTLE IMPRESSED ME. REALLY, ALL OF THEM. I CANNOT JUST PINPOINT ONE. I WAS FORTUNATE ENOUGH TO BE IN ALL THREE COUNTRIES -- MEXICAN CITIES, VANCOUVER. THE ONLY CITY I HAVE NOT GONE TO IN THE U.S. IS BOSTON. ALL OF THEM WERE ABSOLUTELY GREAT HOSTS FOR THIS WORLD CUP. KATIE: YOU WORK WITH TELEMUNDO. WHAT HAS BEEN INTERESTING ABOUT THIS WORLD CUP IS THAT A LOT OF ENGLISH SPEAKERS ARE WATCHING TELEMUNDO. >> HE IS THERE. IT IS ABOUT HIM. KATIE: OBVIOUSLY, YOU ARE A HUGE DROP. I WONDER WHAT THAT SAYS TO YOU. DOES THAT SURPRISE YOU? IT IS ENGLISH SPEAKERS WHO ARE CHOOSING THAT THIS IS WHERE THEY WANT TO WATCH WORLD CUP COVERAGE. >> I AM NOT SURPRISED. THIS HAPPENED BEFORE. IT IS HAPPENING MORE PERHAPS NOW BECAUSE PEOPLE ARE FINDING US AND FIND THAT NOT ONLY MYSELF, BUT THE OTHER COLLEAGUES THAT WORK FOR TELEMUNDO SPORTS HAVE DONE A TERRIFIC JOB IN PLAY-BY-PLAY. WE HAVE THE GOAL CALLS AND THIS AND THAT. I THINK WE HAVE A PASSION FOR THE GAME THAT IS UNPARALLELED. IT IS A QUESTION OF STYLES. I RESPECT SO MUCH THE ENGLISH LANGUAGE BROADCAST ON OUR COMPETITOR. BUT WE HAVE A DIFFERENT FEEL FOR THE GAME. WE ARE VERY PASSIONATE. LATIN AMERICANS ARE VERY PASSIONATE. WE HAVE THE SENSE OF CRAZINESS IN FOOTBALL FOR SOCCER. WE ARE VERY, VERY GRATEFUL THAT WE ARE PLAYING THE NUMBERS WE ARE PULLING. ALSO FROM THE ENGLISH SIDE OF THINGS. CRITICS I BELIEVE YOU'VE WATCHED MORE LIONEL MESSI FOOTBALL IN PERSON THAN KATIE AND I HAVE, COMBINED. KATIE, HAVE YOU WATCHED ANY? KATIE: NOT IN PERSON. ASK WHAT IS IT LIKE TO SEE HIM DO THE THINGS HE IS DOING AT 39 YEARS OLD, AND TO HAVE A CHANCE FOR ARGENTINA TO DEFEND A TITLE, WHICH IS SOMETHING WE ALMOST NEVER SEE? IT'S IT IS INCREDIBLE. WE THOUGHT BEFORE THE WORLD CUP THAT HE WAS GOING TO PLAY A SPECIAL ROLE. IT TOOK HIM FIVE TIMES TO WIN THE WORLD CUP INTO IT BE TOO. THAT WAS THE FIFTH WORLD CUP. NOW HE IS PLAYING IN A RECORD-BREAKING SIXTH WORLD CUP. WE THOUGHT HE WAS GOING TO PLAY, MAY BE COMING OFF THE BENCH, FOR AN HOUR. HE IS -- IN SOCCER TERMS, THAT IS BEING OLD. AND YET HE HAS PROVEN TIME AND AGAIN THAT HE IS THE GOAT. HE IS THE BEST OF ALL TIMES. HE IS THE GOALSCORER. DELETING A SISTER. HE PLAYS EVERY SINGLE MINUTE. -- THE LEADING ASSISTER. WITH HIS RIGHT FOOT -- HIS DOMINANT LEFT. HE BROKE ENGLISH DEFENDERS THAT WERE 19 AND 21 YEARS OLD AND WHO ARE LOOKING AT HIM SAYING, WHAT? HE IS JUST GREAT. HE DOES NOT NEED TO WIN A SECOND WORLD CUP. OBVIOUSLY, IF HE DOES, THIS TROOP OF ARGENTINIAN PLAYERS AND LIONEL MESSI WILL BE REMEMBERED AS THE GREATEST EVER IN THE HISTORY OF THE SPORT. KATIE: LET'S WAIT TO SEE IF THEY WILL BE ABLE TO GET IT DONE ON SUNDAY. SO COOL TO HAVE YOU IN STUDIO WITH US. WE REALLY APPRECIATE YOU MAKING THE TIME. THAT IS TELEMUNDO'S PLAY-BY-PLAY ANNOUNCER. REALLY INTERESTING TO HEAR THAT SEATTLE IN PARTICULAR IS ABSOLUTELY ROCKING. ASK I AM SORT OF UNSURPRISED BECAUSE OF THE ATMOSPHERE OF THE SEAHAWKS. THOSE WHO GO TO THE GAME ARE OFTEN KNOWN AS THE 12TH MAN. FROM THAT PERSPECTIVE, IT IS NO SURPRISE THAT THAT SCENE WAS PROBABLY ROARING. KATIE: WE WILL GET INTO THE NUMBERS WHEN IT COMES TO THE BETS THAT WERE BEING WAGERED ON SOME OF THOSE GAMES. NEXT, WE WILL EXPECT THE FIFA WINDFALL WITH THE CEO OF THE HOST COMMITTEE. HE WILL TALK ABOUT THE ECONOMIC IMPACT. THAT IS NEXT. THIS IS "THE CLOSE." ♪ KATIE: THE 2020 SIX FIFA WORLD CUP FINAL KICKS OFF IN JUST UNDER 48 HOURS, HOSTED AT THE NEW YORK NEW JERSEY STADIUM. YOU MIGHT KNOW IT IS METLIFE. WE SAT DOWN WITH THE CEO OF THE NEW YORK NEW JERSEY HOST COMMITTEE FOR THE FIFA WORLD CUP 2020 SIX TO DISCUSS THE RIPPLE EFFECTS OF THE TOURNAMENT ON THE REGION. HERE IS PART OF THAT CONVERSATION. >> THE NEXT FEW DAYS ARE ABOUT MAKING SURE WE ARE READY FOR WHAT IS KIND OF ITS OWN ANIMAL AND A SINGLE -- SINGULAR EVENT. THE WORLD CUP FINAL IS GOING TO BE PROBABLY THE HUGEST EVENT IN HUMAN HISTORY. WE WILL HAVE BILLIONS OF PEOPLE WATCHING, WHETHER IT IS INSIDE THE STADIUM -- WE ARE EXPECTING A FULL SELLOUT. THIS IS BASICALLY GOING TO BE A MINI UNITED NATIONS, MIXED WITH THE OSCARS. FOR US, WE HAD A VERY SUCCESSFUL FIRST SEVERAL GAMES. WE DON'T NEED TO RE-CREATE THE WHEEL. WE DO NEED TO WORK UNDER NEW PARAMETERS. HEADS OF STATE, CELEBRITIES, VIPS, AND THE FINAL WHICH IS GOING TO BE VIEWED BY BILLIONS OF PEOPLE. KATIE: LAST TIME YOU WERE HERE, I GIVE YOU A LOT OF GRIEF ABOUT THE TRAFFIC SITUATION SINCE I LIVE IN HOBOKEN. I WAS REALLY WORRIED ABOUT WHAT THAT AREA IN NEW JERSEY WOULD LOOK LIKE. I HAVE TO SAY IT HAS NOT IMPACTED MY LIFE THAT MUCH. I FEEL LIKE THE PUBLIC TRANSIT ASPECT OF IT HAS MAYBE BEEN A LITTLE BIT BETTER THAN THE BROADER PUBLIC EXPECTED. >> ONE OF THE THINGS WE ALWAYS TRIED TO TELL PEOPLE IS THIS IS WHAT WE DO, RIGHT? THE UNITED STATES IS EXPERTS AT PUTTING ON MASSIVE EVENTS. WE SELLOUT METLIFE STADIUM EVERY WEEKEND. WE HAVE DONE PLENTY OF EVENTS THERE. WE HAVE DONE A TAYLOR SWIFT CONCERT. THEY ALL GO FINE. FOR THE WORLD CUP, IT IS BIGGER IN SCALE AND SCOPE, BUT AT THE END OF THE DAY, IT IS A SOLD-OUT EVENT IN METLIFE STADIUM. AND AS WE HEAD INTO SPORTS, THE UNITED STATES ARE EXPERTS AT PUTTING ON BIG EVENTS, AND WE NEED TO LEAN INTO THAT EXPERTISE. WHAT WE HAVE SEEN ON OUR LOGISTICS -- 97% OF FANS WERE SCANNED IN BEFORE KICKOFF. EVERYONE WAS OFF THE PROPERTY IN TWO AND A HALF HOURS. A REAL WIN FOR US AND I THINK WE HAVE SET THE STANDARD FOR WHAT THESE MEGA-EVENTS ARE SUPPOSED TO LOOK LIKE. >> LET'S TALK TICKETS FOR A SECOND. OFTEN, SUPER BOWLS HOLD THE MOST EXPENSIVE TICKETS. THERE WAS THE SUPER BOWL IN LAS VEGAS, AND OTHERS AS WELL. I THINK THE 2026 MEN'S WORLD CUP FINAL COULD COME PRETTY CLOSE TO TOPPING THE AVERAGE MOST EXPENSIVE TICKET EVER SOLD. WHAT DO YOU THINK? ASK WHEN YOU ARE LOOKING AT THESE MEGA-EVENTS, WHETHER THE OLYMPICS, SUPER BOWL, WORLD CUP, YOU ARE SEEING THE DEMAND FOR THESE IN REAL LIFE EXPERIENCES GETTING HIGHER AND HIGHER. THEY ARE BECOMING A BIGGER AND BIGGER EVENT. MORE AND MORE THAT IS HAPPENING, WHETHER THAT IS OUTSIDE HOSPITALITY OR THE OPENING AND CLOSING CEREMONIES AND HALFTIME SHOW. THESE EVENTS ARE BECOMING BIGGER AND BIGGER, AND THE DEMAND FOR WANTING TO BE THERE AND BE PART OF IT IS ALSO BECOMING GREATER. I THINK FOR US WHAT WE REALLY WANTED TO DO WAS COME UP ONE, MAKE SURE THIS WAS ACCESSIBLE AS MUCH AS POSSIBLE. WE ARE GIVING 40 FREE TICKETS TO THE FINALS. WE HAVE ALSO GOT OUR WATCH PARTIES, WHICH ARE THESE MASSIVE EXPERIENCES AT CENTRAL PARK, ROCK CENTER, ALL ACROSS NEW YORK AND NEW JERSEY. THEY ARE ALL FREE. WHETHER YOU ARE INSIDE OR OUTSIDE THE STADIUM, WE WANT TO MAKE SURE YOU ARE ABLE TO WATCH THE WORLD CUP, BE PART OF THE EXPERIENCE, AND HAVE AN INCREDIBLE TIME. KATIE: AND HAS BEEN AN INSANE COUPLE OF WEEKS AND MONTHS FOR NEW YORK. AS WE WERE TALKING ABOUT IT, THE ANTICIPATION FOR THIS MATCH UP ON SUNDAY IS HUGE. THIS IS TRULY A GLOBAL GAME. WHAT SENSE DO YOU HAVE ABOUT WHAT THE BREAKDOWN MIGHT LOOK LIKE ON SUNDAY WHEN IT COMES TO INTERNATIONAL FANS? >> FOR THE ENTIRE WORLD CUP, IT HAS BEEN ABOUT 50% INTERNATIONAL AND 50% DOMESTIC, WITH ABOUT 20% BEING LOCAL. 30%, THE ENTIRE REST OF THE U.S.. 20% NEW YORK/NEW JERSEY, WHICH MATCHES UP WITH WHAT OUR EXPECTATIONS WOULD HAVE BEEN. WE ARE SEEING OCCUPANCY YEAR-OVER-YEAR EXCEEDING WHAT IT WAS LAST YEAR. SO THE WORLD CUP HAS BROUGHT A PRETTY MASSIVE ECONOMIC IMPACT. WE HAVE DONE AN INTERIM ECONOMIC IMPACT REPORT JUST COVERING THE GROUP STAGE, AND WE SAW OVER $2 BILLION OF ECONOMIC IMPACT JUST FROM THE GROUP STAGE, WITH OVER A BILLION DOLLARS OF DIRECT CONSUMER SPENDING. HUNDREDS OF MILLIONS OF DOLLARS ALREADY INDIRECT TAX REVENUE FOR THE REGION. THIS IS ALREADY, JUST FOR THE THREE WEEKS IN JUNE, BITING A MASSIVE ECONOMIC IMPACT AND ON PACE TO BREAK WHAT OUR PROJECTIONS WERE, WHICH WAS OVER $3 BILLION. KATIE: OUR THANKS AGAIN TO ALEX LAST, CEO OF THE NY NJ HOST COMMITTEE FOR THE FIFA WORLD CUP. WE WERE TALKING WITH HIM ABOUT HOW THE TRAFFIC HAS NOT BEEN THAT BAD. A VERY SELFISH PERSPECTIVE HERE. I JUST DON'T WANT MY LIFE TO BE BATTERED TOO MUCH. BUT WE HAVE LEARNED THAT PRESIDENT DONALD TRUMP IS GOING TO BE AT THE FINAL, SO IT MAY BE A LITTLE MORE DIFFICULT ON SUNDAY. >> I THINK LEAVING METLIFE STADIUM IS GOING TO BE ABSOLUTELY INSANE. WHENEVER HE ATTENDS AN EVENT, WHETHER IT BE THE WORLD CUP FINAL, AND BE GAME THREE, THE SUPER BOWL -- EVERYTHING HAS HEIGHTENED SECURITY. I THINK IT WILL BE FINE AS LONG AS YOU GET THERE EARLY. BUT IT WILL BE COMPLETELY DIFFERENT. KATIE, AND WHEN EVERYONE TRIES TO LEAVE AT ONCE. IT WILL BE FUN TO SEE WHAT THAT MEANS, ESPECIALLY FOR PEOPLE DRIVING BY, WHICH IS WHAT I DO. IN ANY CASE, COMING UP, WE ARE GOING TO TALK ABOUT HOW THE WORLD'S BIGGEST SPORTING EVENT ALSO BECAME ONE OF THE BIGGEST BETTING EVENTS. A CONVERSATION WITH ADAM GREENBLATT, THE CEO OF BET MGM. KATIE: WELL, THE WORLD CUP FINAL IS SET TO BOOST U.S. SPORTS BOOKS. THE TEAM AT BLOOMBERG INTELLIGENCE CRUNCHING THE NUMBERS, NOTING THAT DRAFTKINGS, PHAM DUELL, AND BET MGM COULD BE SET FOR A MODERATE BOOST TO THE THIRD QUARTER IF UNDERDOG ARGENTINA DEFEATS SPAIN. WE ARE DISCUSSING WITH THE BET MGM CEO AS WE HEAD INTO THIS WEEKEND'S BIG MATCHUP. WE WERE JUST TALKING WITH THE FAMOUS PLAY-BY-PLAY COMMENTATOR FOR TELEMUNDO. HE SAID THAT IT WAS THE SEATTLE GAMES THAT REALLY IMPRESSED HIM, WHEN IT COMES TO THE FAN PRESENCE. I'M TAKING A LOOK AT SOME OF THE STATS THAT YOU SENT OVER, AND IT WAS THE U.S.-BELGIUM GAME IN SEATTLE THAT WAS YOUR MOST BET ON SOCCER MATCH EVER. TALK TO US ABOUT WHAT YOU ARE SEEING WHEN IT COMES TO SOME OF THESE SPECIFIC MATCHUPS. >> IN AGGREGATE, THE WORLD CUP HAS DRAMATICALLY EXCEEDED OUR EXPECTATIONS. I THINK THERE IS A THEME HERE. I LISTENED TO THE PREVIOUS SEGMENT. EXCEEDING EXPECTATIONS AND BREAKING RECORDS. BET MGM WAS NO EXCEPTION. THIS TOURNAMENT HAS BEEN THE MOST BET WORLD CUP IN BET MGM HISTORY. THE OVERALL VOLUME HAS TRIPLED. YOU HEARD THAT RIGHT. THREE X, COMPARED TO THE 2022 WORLD CUP. AND IT KEEPS GOING. WE HAVE TWO MORE GAMES AHEAD. THE ARGENTINA-SPAIN MATCHUP, THE COPPER FINAL, IS REALLY CAPTURING THE BETTER -- BET TO'S -- BETTOR'S IMAGINATION. THERE ARE SEVERAL REASONS WHY IT HAS BECOME A SUCCESSFUL BETTING EVENT. I THINK IT IS PARTLY A RESULT OF THE EXPANDED TOURNAMENT FORMAT. WE HAVE MORE BETTING CONTENT, MORE GAMES. WE HAVE A BROADER RANGE OF BETTING MARKETS. WHAT WE ARE OFFERING IS MUCH WIDER. AND WITH BETTING OPPORTUNITIES, THE PLAYER STORIES. THE FACT THAT IT IS A TOURNAMENT ON OUR HOME SOIL -- THE GAMES ARE AT THE RIGHT TIME. THE VIEWING PUBLIC AND THE SUPPORT FOR SOCCER IS AT UNPRECEDENTED LEVELS. >> EVERY BETTING PERSON I HAVE SPOKEN WITH HAS BEEN THRILLED THAT THIS IS THE FINAL. WHAT WAS YOUR IMMEDIATE REACTION WHEN FRANCE AND ENGLAND LOST EARLIER THIS WEEK? ASK I GOT ON MY KNEES. I LOOKED UP AT THE HEAVENS ABOVE. AND I SAID THANK YOU. THE FANS THAT -- THE FACT THAT FRANCE WAS KNOCKED OUT AND IS NOT A FINALIST CONTENDER -- THAT WAS GOLD FOR THE SPORTS BOOKS. KATIE: YOU MENTIONED THAT SINCE 2022, YOUR TOTAL ADJUSTABLE MARKET HAS EXPANDED. BUT SO HAVE YOUR COMPETITORS. YOU HAVE THE LIKES OF THE OTHER SPORTS BOOKS. YOU HAVE THE FAN DUELS OF THE WORLD. BETTING MARKETS HAVE ENTERED THE PUBLIC CONSCIOUSNESS IN THE LAST FEW YEARS OR SO. HOW DO YOU POSITION BET MGM TO STAY FRONT OF MIND FOR THOSE LOOKING TO PLACE THESE BETS? >> THERE IS NO DOUBT THE COMPETITIVE ENVIRONMENT HAS BEEN FIERCE. BUT IT HAS BEEN FIERCE SINCE THE BEGINNING. WE ARE FOCUSED ON OUR HOW WE WIN THAT STRATEGY. WE ARE CREATING LEGENDARY EXPERIENCES, BOTH IN PERSON AND IN APP. THAT OMNI-CHANNEL STRATEGY IS VERY CENTRAL. WE CUT THROUGH DURING THE TOURNAMENT WITH WHAT WE THINK ARE SOME REALLY INNOVATIVE OFFERINGS TO OUR PLAYERS. WE STARTED WITH WHAT WE CALL THE GOLD RUSH GIVEAWAY, WHERE FOR EVERY GOAL THE U.S. TEAM SCORED, WE WOULD GIVE THOSE WHO PARTICIPATED HALF A MILLION DOLLARS. WHEN THE TOURNAMENT STARTED, THE TOURNAMENT OPENER AGAINST PARAGUAY, WHERE THE USA SCORED FOUR GOALS, IT HAD ME WORRIED. I WAS WORRIED ABOUT WHAT WAS TO COME. THAT WAS ONE OF THE AREAS. WE HAD A TWO UP EARLY PAY PROMOTION. IF YOUR TEAM IS UP BY TWO GOALS, REGARDLESS OF THE OUTCOME, YOU GET PAID. WE ALSO TEAMED UP WITH ONE OF OUR PARTNERS, MARRIOTT BOND BOY -- BONVOY, ON THE PITCH SWEEPSTAKES. THE WINNERS GET TO ATTEND THE BEYOND THE PITCH PARTY RIGHT HERE IN NEW YORK THIS IS ALWAYS A WHO'S WHO OF THE BIGGEST NAMES IN SPORTS AND ENTERTAINMENT. GIVEN OUR RELATIONSHIP WITH MGM RESORTS, WE HAVE PUT ON WATCH PARTIES AND ACTIVATIONS ALL AROUND THE COUNTRY. WE ALSO HAVE ONE OF OUR PARTNERS, ONE OF OUR BRAND AMBASSADORS, IS THE SOCCER ICON TIM HAMMOND. WE LAUNCHED A CASINO GAME IS PART OF THE ACTIVATION. A BIT OF FUN -- WE SENT HIM UNDERCOVER IN CHICAGO AT A SOCIAL MEDIA VIGNETTE THAT HAS REALLY GONE VIRAL. PEOPLE ARE REALLY PLEASED ABOUT THE TEAM. SO IN THE WAY THAT BET MGM DOES, CONSISTENT WITH OUR STRATEGY. >> WHAT I HEAR A LOT IS THAT THE FANS LOVE THE TITANS TO COMPETE -- FRANCE, ENGLAND, SPAIN, AND ARGENTINA IN THE SEMIFINAL. WE DID NOT SEE AS MANY UNDERDOGS. HOW DOES THAT FARE FOR THE SPORTS BOOKS WHEN THE TOP RANKING TEAMS ARE THE ONES FINISHING? IS THAT GOOD? IS THAT BAD? WHAT DO YOU SEE FOR YOUR COMPANY? >> OUR PRODUCT, AT THE IS AN ENTERTAINMENT PRODUCT, AND EMOTIONAL PRODUCT. PEOPLE FOLLOW THEIR HEART. THE FAVORITES ARE FAVORITES BECAUSE OF THEIR GLOBAL FANDOM. THAT REFLECTS IN THE BETTING. IN THE EARLY STAGES OF THE TOURNAMENT, WHERE THE FAVORITES WERE WINNING CONSISTENTLY, I WILL BE HONEST. THE ENGAGEMENT WAS INCREDIBLY HIGH. WE SAW LOCAL VET VOLUME -- IN FACT, THE U.S.-BELGIUM GAME, THE NUMBER OF BITS WE TOOK IN THAT GAME WAS MORE THAN ANY NBA FINALS GAME EVER, AND LEAST -- ANY STANLEY CUP FINALS GAME, AND A WORLD SERIES GAME. OF COURSE, NFL IS KING IN THE SUPER BOWL IS STILL KING. WE TOOK EIGHT TIMES MORE BETS ON THE SUPER BOWL THAN ON THAT GAME. BUT THIS IS TELLING US THAT SOCCER IS IN DEMAND. AND YES, WHEN THE FAVORITES WIN, GENERALLY SPEAKING, IT IS BAD FOR THE SPORTS BOOK. BUT WHEN WE HAVE UPSETS LIKE FRANCE'S DEPARTURE -- WE SHOULD IN THEORY ACHIEVE OUR THEORETICAL MARGIN. KATIE: SUCH AN INTERESTING CONVERSATION. IT IS CERTAINLY GOING TO BE AN INTERESTING WEEKEND. WE APPRECIATE YOU MAKING TIME FOR US. THAT IS THE CEO OF BET MGM. A LOT OF FOCUS ON THE MATCH ITSELF. BUT GLOBAL CITIZEN IS ALSO PRODUCING THE FIRST EVER HALFTIME SHOW FOR THE WORLD CUP FINAL, FEATURING MADONNA, SHAKIRA, JUSTIN BIEBER, BTS, AND CHRIS MARTIN. WE SPOKE WITH HUGH EVANS IN THE LEAD UP TO THIS HISTORIC EVENT. LET'S TAKE A LISTEN NOW. FIX THIS IS AN EXTRAORDINARY EVENT FOR THE FIRST EVER FIFA WORLD CUP HALFTIME SHOW. IT REALLY IS PLEASED TO BE THE SINGLE LARGEST LINEUP SINCE LIVE AID. CHRIS MARTIN FROM COLDPLAY CURATED THE WHOLE THING. HE BROUGHT TOGETHER BTS, JUSTIN BIEBER, MADONNA, SHAKIRA, THE PS 20 TWO CHOIR, THE NEW YORK PHILHARMONIC, AND ORCHESTRA -- THIS LINEUP REPRESENTS EVERY CONTINENT ON THE PLANET EXCEPT ANTARCTICA AND IT IS THIS AMAZING MOMENT OF UNITY FOR THE WHOLE PLANET. ROMAINE: IS THERE A THEME THAT TIES ALL OF THIS TOGETHER? ALL THE ARTISTS ARE PERFORMING DIFFERENT SONGS, BUT I ASSUME THERE HAS TO BE SOME THREAD. THERE IS A POWERFUL THEME, AND THIS IS THE VISION OF CHRIS MARTIN. THE THEME IS UNITY AND LOVE. THE IMPACT WE WANT TO HAVE IS WE SET THIS AMBITIOUS GOAL OF RAISING OVER $100 MILLION FOR THE FIFA GLOBAL CITIZEN EDUCATION FUND. THIS IS A FUND WE SET UP TO FOCUS ON GRASSROOTS LITERACY ALL AROUND THE WORLD. WE KNEW THAT THIS WAS A ONCE IN A GENERATION OPPORTUNITY WHEN YOU HAD 1.5 BILLION PEOPLE AROUND THE WHOLE PLANET TUNING IN AT THIS MOMENT. IF WE COULD USE THIS AS A MOMENT TO RAISE $100 MILLION, WE CAN GIVE OUT GRANTS TO COMMUNITY ORGANIZATIONS ALL OVER THE WORLD. ROMAINE: SO PEOPLE WILL BE EXPOSED TO THIS AND WILL BE ABLE TO DONATE AFTER THE EVENT IS OVER? >> A DOLLAR FROM EVERY TICKET TO THE WORLD CUP GOES TO THE FUND. SHAKIRA, USHER -- THEY GAVE A DOLLAR IN SUPPORT OF THE EDUCATION FUND. THE PRIVATE SECTOR STEPPED UP. BANK OF AMERICA, LIVE NATION -- THEY CONTRIBUTED. WE GOT A COMMITMENT TODAY FROM CANADA OF $5 MILLION TO SUPPORT THE GLOBAL CITIZEN EDUCATION FUND. OTHER GOVERNMENTS ARE STARTING TO STEP UP. I'M PROUD TO TELL YOU THAT AS OF A FEW HOURS AGO, WE HAVE OVER $60 MILLION RAISED FOR THE GLOBAL CITIZEN EDUCATION FUND. ROMAINE: JUST FROM THIS EVENT? THAT IS A LOT OF MONEY. GIVE ME A SENSE HERE. PEOPLE WILL LOOK AT THIS AND SAY, WHERE EXACTLY DOES THAT MONEY GET DEPLOYED? OVERALL, I UNDERSTAND WHAT YOU ARE DOING. WHAT ARE THE SPECIFICS? >> THE SPECIFICS ARE IMPORTANT. WE HAVE A BOARD THAT INCLUDES HUGH JACKMAN, SERENA WILLIAMS, IVANKA TRUMP -- A RANGE OF BOARD MEMBERS WHO ARE CONTRIBUTE INTO THIS EFFORT. SHAKIRA IS ON THE BOARD. WE MEET ALL THE TIME AND WE SIFT THROUGH THOUSANDS OF APPLICATIONS THAT HAVE COME IN FROM GRASSROOTS ORGANIZATIONS OVER THE WORLD. WE HAVE AN INDEPENDENT AUDITOR TO MAKE SURE WE CAN TRACK EVERY SINGLE DOLLAR. KATIE: OUR THANKS AGAIN TO THE GLOBAL CITIZEN CEO, HUGH EVANS. COMING UP, THE BUSINESS OF SOCCER AND IT'S GROWING FOOTHOLD HERE IN THE UNITED STATES. WE WILL DISCUSS WITH THE OWNER OF THE ORLANDO VIKINGS. KATIE: SUNDAY'S WORLD CUP FINAL SET TO SHATTER VIEWERSHIP RECORDS AS SPAIN AND ARGENTINA DUKE IT OUT FOR THE TITLE. WE HAD A CHANCE TO SIT DOWN WITH THE MINNESOTA VIKINGS PRESIDENT AND OWNER, WHO IS ALSO THE OWNER AND CHAIRMAN AT ORLANDO CITY SC, TO TALK MORE ABOUT FIFA'S INFLUENCE ON SOCCER FANDOM IN THE U.S.. TAKE A LISTEN. >> THE EXCITEMENT HAS BEEN PALPABLE FOR THE LAST FIVE WEEKS. LACK OF SLEEP FROM ALL THE FANS WATCHING IT. I THINK THE EXCITEMENT, THE FOUNDATION THAT IS BUILT HERE, IS GOING TO TAKE SOCCER VIEWERSHIP IN THE UNITED STATES TO A NEW LEVEL. WHETHER THAT IS THE INCREDIBLE VENUES WE HAVE HAD, THE COMMUNITIES, THE WATCH PARTIES -- IN ORLANDO ALONE, WE HAD 65,000 PEOPLE COME TO OUR WATCH PARTIES. SEEING THE SUCCESS OF THE U.S. SOCCER TEAM, THE RUN THEY HAD, AND ALL OF IT -- GREAT PASSION. GREAT EXCITEMENT FOR THE GAME. ROMAINE: THE IMPACT ON NEW YORK -- YOU ARE MORE OR LESS A LOCAL GUY, ALTHOUGH YOUR BUSINESS INTERESTS OR ELSEWHERE. THIS HAS BEEN A HUGE IMPACT ECONOMICALLY FOR THE NEW YORK NEW JERSEY REGION, AND FOR OTHER CITIES LIKE KANSAS CITY, SEATTLE, ETC.. GIVE ME A SENSE AS TO HOW THAT TRANSLATES INTO OTHER ECONOMIC OPPORTUNITIES GOING FORWARD. A LOT OF FOREIGNERS CAME TO THESE CITIES AND GOT A TASTE OF AMERICA IN A WAY THAT MAYBE THEY WOULD NOT HAVE IF THE WORLD CUP HAD NOT BEEN THERE. >> I THINK THE WORLD HAS TAKEN NOTICE THAT THE U.S. IS A GREAT PLACE TO DO BUSINESS. HOPEFULLY FIFA WILL PUT US ON THE MAP FOR ANOTHER WORLD CUP, SOONER THAN LATER. JUST THE ECONOMIC IMPACT OF THE ENTIRE WORLD COMING HERE AND SEEING HOW OPEN -- THE UNITED STATES, HOW OPEN AND WELCOMING THE UNITED STATES AND NORTH AMERICA IS, IN TERMS OF FANDOM, EXCITEMENT, AND PASSION. I THINK THAT GOES FOR PLAYERS TOO. WE JUST SIGNED A WORLD CHAMPION OF FRANCE, SOMEONE WHO EVERYONE IN THE WORLD KNOWS. PLAYERS LIKE THAT NOW WANT TO COME TO THE UNITED STATES. AND I KNOW OUR FANS ARE GOING TO LEAP OFF OF THIS. I THINK THERE WILL BE A LOT OF PASSION AND EXCITEMENT FROM WHAT YOU SEE OUT THERE, AND IT WILL ROLL INTO THE SEASONS AHEAD. KATIE: I WANT TO TALK MORE ABOUT THAT HALO EFFECT. YOU MENTIONED GUZMAN SIGNING ON. REALISTICALLY, HOW MUCH MORE OF THAT TYPE OF ACTIVITY MIGHT WE SEE? BEING ABLE TO ATTRACT THAT SORT OF TALENT TO U.S. TEAMS. MARK: I THINK IT IS GOING TO HELP A LOT. I THINK THE OWNERSHIP WE HAVE IN MAJOR LEAGUE SOCCER -- REMEMBER, 1990 FOUR, THAT WORLD CUP LED TO THE CREATION OF MAJOR LEAGUE SOCCER. JUST TO THINK FOUR YEARS AGO AT THE WORLD CUP, THERE WERE SEVEN MLS PLAYERS THAT PLAYED IN THE WORLD CUP. THIS GO AROUND, 45 PLAYERS. THAT IS A TESTAMENT TO THE LEVEL OF PLAY WE HAVE, THE LEVEL OF THE LEAGUE WE HAVE. IT IS GROWING DRAMATICALLY. SOCCER VIEWERSHIP AND PASSION COMES WITH GREAT MOMENTS. THERE HAVE BEEN A LOT OF GREAT MOMENTS IN THIS WORLD CUP. NOT JUST GREAT FAN THINGS YOU SEE WITH THE NORWEGIAN ROWING AND ALL THE REST. IT IS GREAT PLAYS, GREAT EXCITEMENT, AND YOUNG PEOPLE COMING OUT TO THE BEST VENUES IN THE WORLD AND SEEING GREAT SOCCER. KATIE: OUR THANKS TO MARK WOLF, THE PRESIDENT AND OWNER OF THE MINNESOTA VIKINGS AND ORLANDO PRIDE. STILL AHEAD, MORE ON THE GROWING FAN BASE FOR SOCCER HERE IN THE UNITED STATES. WE WILL CATCH BRAD SIMS ON WHERE HE IS SEEING THE BIGGEST IMPACT. THIS IS BLOOMBERG. KATIE: THE BALL IS OFFICIALLY ROLLING FOR THE FIFA WORLD CUP FINAL, KICKING OFF AT NEW YORK NEW JERSEY STADIUM, ALSO KNOWN AS METLIFE, ON SUNDAY. IT IS A HUGE MOMENT FOR U.S. SOCCER, WITH OUR NEXT GUEST PLANNING TO OPEN NEW YORK CITY'S FIRST EVER SOCCER-SPECIFIC STADIUM IN 2020 SEVEN. BRAD SIMS IS THE CEO OF NEW YORK CITY FC, TALKING ABOUT HOW THIS IMPACTS NEW YORK SPORTS. >> FIRST OF ALL, NEW YORK IS A SOCCER CITY. IT HAS BEEN FOR A LONG TIME. EVERY GAME THAT -- AT METLIFE HAS BEEN SOLD OUT. YOU HAVE PACKED FANS. WE WILL HAVE A FULL HOUSE HERE ON SUNDAY. IT HAS BEEN AMAZING TO SEE THE CITY UNITE AROUND THE SPORT. THIS IS A WORLD CITY. WE SAY THAT THIS IS THE WORLD SPORT. NO BETTER PLACE TO HAVE A WORLD CUP FINAL, IN MY OPINION, THEN HERE IN THE NEW YORK CITY AREA. IT HAS BEEN AMAZING TO SEE FANS FROM ALL OVER. AND BY THE WAY, LOTS OF NEW FANS THAT ARE REALLY SEEING THE POWER OF THE WORLD OF SOCCER AND COULD NOT BE MORE EXCITED ABOUT IT. IT IS AMAZING FOR THE SPORT. ALL OF THAT IS GREAT I THINK FOR MAJOR LEAGUE SOCCER, FOR NEW YORK CITY FC. MORE SOCCER FANS. MORE INTEREST. MORE PEOPLE TALKING ABOUT SOCCER, THINKING ABOUT SOCCER, WATCHING SOCCER GAMES. IT IS BETTER FOR US. ROMAINE: GO BACK. WE TALK ABOUT THE MLS AND ITS FOUNDING, AND RIDING THE COATTAILS OF THAT FIFA WORLD CUP WHICH CAPTIVATED A LOT OF FOLKS HERE IN THE UNITED STATES. WHEN YOU THINK ABOUT THE MATURITY OF THIS LEAGUE RIGHT NOW, OR THE MATURITY OF NEW YORK FC, HOW MUCH OF A BUMP DOES A WORLD CUP BEING PLAYED IN THE U.S. AND NORTH AMERICA ACTUALLY BRING IN NEW FANS TO THE SPORT? >> WE THINK IT IS GOING TO BE MASSIVE. THIS IS ROCKET FUEL TO OUR CLUB IN NEW YORK. IT IS AMAZING, THE IMPACT THAT THE 1990 FOUR WORLD CUP HAD. THAT SPAWNED AN ENTIRE LEAGUE. NOW WE ARE HERE 30 PLUS YEARS LATER, AND MAJOR LEAGUE SOCCER OVER THE LAST TWO YEARS IS THE SECOND HIGHEST ATTENDED LEAK IN THE WORLD ONLY BEHIND THE ENGLISH PREMIER LEAGUE IN TERMS OF ACTUAL ATTENDANCE AT GAMES. IT IS INCREDIBLE HOW THE SPORT HAS BEEN TAKEN ON IN THIS COUNTRY. THIS WORLD CUP IS TAKING EVERYTHING TO A COMPLETELY DIFFERENT LEVEL. WE DEFINITELY ARE ALREADY SEEING THE POSITIVE IMPACTS OF THAT. BUT THE LEAGUE IS COMING BACK THIS WEEKEND, SO MLS IS BACK. IT IS GOING TO BE -- FOR US, WE ARE GOING TO SEE A TON OF POSITIVE MOMENTUM, AND WE ARE FORTUNATE IN NEW YORK CITY TO BE LAUNCHING THE FIRST EVER SOCCER-SPECIFIC STADIUM IN THE FIVE BOROUGHS OF NEW YORK CITY IN 2027. FOR US, THE TIMING COULD NOT BE MORE PERFECT. KATIE: BRAD SIMS IS THE CEO OF NEW YORK CITY FC. HERE TO COUNT US DOWN TO THE FINAL WEEKEND OF THE WORLD CUP IS VANESSA PERDOMO, A BLOOMBERG BUSINESS OF SPORTS COHOST. I'M ALSO JOINED BY RANDALL WILLIAMS. ALL I WANT TO TALK ABOUT RIGHT NOW IS THE WEATHER. THE AIR IS POISONOUS IN NEW YORK RIGHT NOW. I AM ONLY SLIGHTLY EXAGGERATING. IT IS VERY UNHEALTHY BECAUSE WE HAVE ALL THE CANADIAN WILDFIRE SMOKE SORT OF ANGLE -- SORT OF ENGULFING OUR CITY. FOR THIS MATCH, BY MANY MEASURES, IT IS UNHEALTHY TO BREATHE RIGHT NOW. VANESSA: IT IS NOT HEALTHY TO BREATHE, BUT IT DOES NOT POSE A PROBLEM FOR FIFA OTHER THAN OPTICS. THEY ARE NOT GOING TO CHANGE THE GAME. THE WORLD CUP FINAL IS GOING TO BE PLAYED AT 3:00 P.M. ON SUNDAY. THEY OBVIOUSLY HAVE THINGS IN PLACE WHERE IF IT GETS UP TO 200 OR SOMETHING LIKE THAT, THEY WOULD PROBABLY HAVE SOME SORT OF WAY TO PUSH THE GAME BACK MAY BE TO MONDAY OR SOMETHING LIKE THAT. BUT AS OF RIGHT NOW, IT DOES NOT LOOK LIKE IT WOULD BE THAT POISONOUS, AS YOU SAY. I THINK THEY ARE GOING TO HAVE THE GAME. KATIE: WE KNOW THAT PRESIDENT DONALD TRUMP WILL BE ATTENDING THE GAME ON SUNDAY. APPARENTLY, HE IS PLANNING TO SPEAK WITH CANADIAN PRESIDENT MARK CARNEY TO FIND OUT WHAT THEY ARE GOING TO DO ABOUT IT. I LOOK FORWARD TO THAT CONCLUSION. SOMETHING WE WERE TALKING ABOUT EARLIER IN THE SHOW WAS ADIDAS FEELS LIKE THE BIG WINNER HERE. VANESSA: THEY ACTUALLY CANNOT LOSE. THEY OUTFIT THEM BOTH FOR THE GAMES. AND WE WERE TALKING ABOUT THIS BEFORE. I DO THINK MESSI AND ARGENTINA WOULD BE THE BIGGER WIN FOR THEM. HIS LAST WORLD CUP, POTENTIALLY. IF THAT JERSEY BECOMES REALLY VALUABLE -- EVEN FOR THEIR OWN SALE. RANDALL: OF COURSE, MARMOL IS A GLOBAL ICON WAITING TO BLOOM. BUT HE HAS NOT HAD A MOMENT AT THE WORLD CUP. WHEREAS MISSY IS A LEADING CANDIDATE FOR THE GOLDEN BOOT. WITH THAT IN MIND, IF HE DOES THE SAME THING HE DID THE LAST MATCH AGAINST ENGLAND AND HAVE TWO ASSISTS, ADIDAS CAN SAY THIS IS OUR GOLDEN GUY. I THINK THERE WOULD HAVE TO BE A SIMILAR TYPE OF MATCH THAT KYLIAN MBAPPE BE HAD, A HAT TRICK. WE HAVE ONLY SEEN A COUPLE OF THOSE EVER. KATIE: IT IS GOING TO BE FASCINATING TO SEE HOW IT PLAYS OUT, ARGENTINA VERSUS SPAIN ON SUNDAY. APPRECIATE YOU BOTH JOINING US. THAT IS VANESSA PERDOMO. THANK YOU SO MUCH FOR JOINING ME THIS HOUR. HELPING ME WITH ALL THE SPORTS CONVERSATIONS FOR OUR SPECIAL COVERAGE OF THE WORLD CUP. FOR ALL OF YOUR POLITICAL COVERAGE, "BALANCE OF POWER COMING UP NEXT, BUT THAT DOES IT FOR US ON THE CLOSE. HAVE A FANTASTIC WEEKEND.