Alphabet To Develop Their Own Server Chips | The Close 7/20/2026

>> THE COUNTDOWN IS ON. EVERYTHING YOU NEED TO GET AT THE EDGE OF THE MARKET DAY. THIS IS "THE CLOSE." KATIE: I FROM STUDIO TO IN BLOOMBERG HEADQUARTERS IN NEW YORK, I AM KATIE GREIFELD. LET'S GET A CHECK ON THESE MARKETS, WHERE WE STAND ON THIS MONDAY WITH JUST ONE HOUR TO GO. THE S&P 500 GIVING UP ITS EARLIER GAINS, NOW DIPPING INTO THE RED ON THE BIG BENCHMARK. NASDAQ 100 HIGHER BY ZERO POINT 4%, CERTAINLY HIGHER A FEW HOURS AGO. TAKE A LOOK AT BRENT TRYING TO DECIDE WHAT TO DO. CURRENTLY HOWEVER BY 1.5 PERCENT, TRADING JUST BELOW $90 A BARREL AS WE PARSE THE REPORTS ABOUT A POTENTIAL TRUCE, AT THE SAME TIME, MAY THE IMPACTS OF A HOUTHI BAN ON SAUDI SHIPS. 10-YEAR HIGHER BY ABOUT FIVE BASIS POINTS. A QUICK CHECK UNDER THE HOOD OF WHERE THE ALL THE ACTION IS. A LOT OF EYEBALLS ON GOOGLE TODAY, HIGHER BY 1.5 PERCENT, GAINING ON THE REPORT THAT THEY ARE LOOKING TO DEVELOP THEIR OWN SERVER CHIP TO OPTIMIZE THEIR GEMINI AI MODEL, CERTAINLY GIVING A LITTLE BIT OF A BOOST TO ALPHABET YEARS AHEAD OF EARNINGS THIS WEEK. WARNER BROS. DISCOVERY ALSO IN THE ZEITGEIST TODAY, A JUDGE PAUSING THE DEAL BETWEEN PARAMOUNT AND WARNER BROS., CITING SERIOUS CONCERNS. CHIPOTLE DOWN 4% AT THE MOMENT AS WE CONTINUE TO TRACK THE FALLOUT FROM CYCLOSPORA. I WANT TO BRING OUR ATTENTION TO AN INTERESTING CHART, A REAL SIGN OF THE TIMES. WE ARE TAKING A LOOK AT FREE CASH FLOW BETWEEN HYPERSCALERS AND WHEN WE ARE SEEING WHEN IT COMES TO SEMICONDUCTORS. IN BLUE, YOU HAVE THE 12-MONTH FORWARD F ESTIMATES VERSUS THE HYPERSCALERS. IT TELLS YOU WHERE THE MONEY IS MOVING. WE KNOW THE HYPERSCALERS ARE SPENDING BIG ON AI AMBITIONS. SEMICONDUCTORS HAVE BEEN THE BENEFIT OF THAT AS MEASURED BY FREE CASH FLOW. THAT IS WHERE I WANT TO START WITH MATTHEW RAO, SENIOR PORTFOLIO MANAGER OVER AT MAN GROUP. GREAT TO SEE YOU. MATTHEW: THANKS FOR HAVING ME. KATIE: THAT IS ONE OF THE QUESTIONS ONCE AGAIN GOING INTO THIS EARNINGS SEASON, WE HAVE THE START OF THE TECH GIANTS REPORTING THIS WEEK, AND THE QUESTION ONCE AGAIN IS ARE THEY GOING TO BE ABLE TO JUSTIFY THEIR AI SPENDING? WHEN YOU TAKE A LOOK AT THE SET UP IN MARKETS AT THE MOMENT, HOW ARE WE PRICED? MATT: PRETTY MUCH BACK TO BEING PRICED FOR PERFECTION FROM AN ACTUAL FUNDAMENTAL PERSPECTIVE BUT ALSO FROM A FORWARD EXECUTION PERSPECTIVE. THERE IS REALLY A LOT OF IMMUNITY BEING BAKED IN TO HIGHER BASE RATES, HIGHER COMMODITY PRICES. PEOPLE TEND TO FORGET A LOT OF THIS NARRATIVE USES A LOT OF ENERGY WITH HIGHER COST PRICES, HIGHER PRICES IN GENERAL. IT PUSHES OFF PROFITABILITY. PROFITABILITY IS NOT WHAT WE ARE LOOKING FOR IN THE MARKET RIGHT NOW. KATIE: IT'S INTERESTING, AND THOSE WHO SENT OVER TO OUR PRODUCERS, LOOKING AT VOLATILITY, IT SEEMS TO BE BASICALLY DEFINED SEASONALITY AS MEASURED BY THE VIX, WHICH IS PARTICULARLY INTERESTING BECAUSE IT IS NOT JUST TECH EARNINGS. WE STILL HAVE WHAT SOME WOULD ARGUE IS A LIVE FED MEETING NEXT WEEK OR SO. MATT: TRYING TO FIGURE OUT WHAT THEY ARE FOCUSED ON, THE MEASURES THEY'LL BE ZOOMING IN ON, THE RESEARCH PROJECT AROUND NEW INDICATORS, NEW WAYS OF TRANSMITTING INFORMATION AND RECEIVING INFORMATION. THERE ARE A LOT OF QUESTIONS OUT THERE ABOUT THE WAY THINGS ARE GOING TO WORK WITH THE FED GOING FORWARD. I WOULD SAY IT'S A LIVE MEETING. EVEN AT A VERY BASIC LEVEL, PEOPLE ARE PRICING IN THE POSSIBILITY THAT WE GET HIGHER RATES IN A COUPLE OF WEEKS. REMAINS TO BE SEEN. SALLY: STOCKS ARE UP TODAY FROM STRENGTH IN CHIPMAKERS BUT AMID THE CONSTANT VOLATILITY, HOW ARE YOU HELPING CLIENTS STRIKE THAT BALANCE BETWEEN PARTICIPATING IN THE TECH DRIVEN MOMENTUM, THE RALLY, WHILE STAYING DISCIPLINED, AVOIDING OVERCONCENTRATION RISK? MATT: THAT'S A REALLY CHALLENGING PART OF MANAGING PORTFOLIOS RIGHT NOW. YOU LOOK AT THE VICKS RIGHT NOW, AND AT 18, THAT IS ON THE HIGH SIDE OF NORMAL. THERE IS NO CONCERN PRICED IN. WHAT WE REFERRED TO AS DISPERSION, THE MOVE OF THE UNDERLYING COMPONENTS OF THE INDEX, HAS BEEN VERY HIGH, CORRELATION IS LOW. THAT MEANS THERE IS NOT MUCH CONCERN BAKED INTO THE MARKET. THERE'S A LOT OF MOVEMENT OF THE IDIOSYNCRATIC NAMES, BUT A LOT OF THE UPWARD MOVE HAS BEEN DRIVEN BY A NARROW SUBSET OF THE MARKET. INVESTORS ARE PAINTED INTO A CORNER. THEY FEEL THEY MAY BE OVEREXPOSED TO THE CATEGORY, BUT THEY FEEL THEY NEED EVERY BIT OF IT TO KEEP PACE. IT IS A QUIETLY CHALLENGING ENVIRONMENT FOR INVESTORS. THE MAIN THING WE ARE DOING TO HELP INVESTORS IS TO, DON'T MAKE SOME LINE IN THE SAND DECISION AND SAY THIS IS AS FAR AS IT'S GONE, WE ARE GOING TO DO YOU ALLOCATE. BE DILIGENT, BE FOCUSED ON MAINTAINING CONTROL OF YOUR RISK. IN A MARKET LIKE THIS, AS SOME NAMES ARE REALLY RIPPING HIGHER, YOU CAN END UP WITH CONCENTRATED RISK EVEN BY ACCIDENT AS THINK EXPAND. SALLY: AS WE SEE THE EARNINGS THIS WEEK, THE DOMINATING NARRATIVE IS WHETHER THE MASSIVE CAPEX IS JUSTIFIED. WHAT KIND OF LINE ITEMS WILL YOU BE LOOKING AT IN THE EARNINGS TO FIND WHETHER THEY HAVE BEEN SUCCESSFUL IN MONETIZING THAT? MATT: AGAIN, THAT'S ANOTHER TRICKY PART OF THE STORY BECAUSE EXPECTATIONS ARE NOT NECESSARILY THAT THIS MASSIVE AMOUNT OF INVESTMENT IS GOING TO BE TRANSLATING INTO PROFITABILITY OR INTO GROSS REVENUES. THERE ARE A LOT OF DIFFERENT MEASURES OF UPTAKE, UTILIZATION, BUT I WILL SAY A LOT OF THE USERS OF THE AI NARRATIVE, THE PRODUCTS ARE BECOMING INCREASINGLY SENSITIVE TO THE COST. A LOT OF COMPANIES AT THE BEGINNING OF THE YEAR CUT PEOPLE LOOSE TO SEE WHAT THEY COULD DO WITH AI IN GENERAL. THEY ARE SEEING IT'S NOT FREE. THERE IS SOME PRICE SENSITIVITY FROM THE USERS OF THESE PRODUCTS. WE ARE STARTING TO SEE SOME COMPETITION. I CANNOT HELP BUT DRAW AN ANALOGY TO THE TELECOM BUILDOUT OF THE LATE 1990'S. PEOPLE HAVE SAID REPEATEDLY THAT THE WORST VERSION OF AI THAT WE WILL EVER USES THEM WHEN WE ARE USING TODAY. I THINK THAT'S VERY TRUE, THINGS ARE GETTING COMPETITIVE, FASTER, GETTING CHEAPER, THEY ARE GETTING MORE EFFICIENT. IF YOU BELIEVE IN MOORE'S LAW, THINGS WILL CONTINUE DOWN THAT PATH VERY QUICKLY. KATIE: IT'S INTERESTING, I'VE HEARD THAT PARALLEL TIME AND AGAIN TELECOM BUILDOUT. IT CREATES THE SPECTER, WOULD APPEAR IN THE MIDST OF A MASSIVE BUILDOUT? IT IS SCARY WHEN YOU THINK ABOUT THE POTENTIAL DAISYCHAIN, IF THAT ENDS UP BEING THE CASE, BECAUSE THAT AI BUILDOUT HAS SPREAD THROUGHOUT SO MANY DIFFERENT INDUSTRIES. IF WE GET SOME SORT OF HIM FROM THE HYPERSCALERS, BIG TECH GIANTS IN THE DAYS AHEAD THAT MAY BE THEY ARE PULLING BACK OR RETHINKING THEIR CAPEX PLANS, WHAT ARE THE POTENTIAL RIPPLE EFFECTS THERE? MATT: I THINK WE ARE STARTING TO SEE IT ALREADY WOULD DEBT ISSUANCE. I WILL STAY AWAY FROM MENTIONING SINGLE CAPITAL STRUCTURES BY NAME, BUT EVERYBODY WANTS TO BE LONG THE ROCKET LAUNCH OF AN EQUITY OFFERING AND VERY RELUCTANT TO BE MORE AT RISK TO THE LONG-TERM EXECUTION, WHICH YOU CAN SEE PRICED IN FIVE TO 30-YEAR DEBT. THE APPETITE FOR THE RISK ON THE FRONT END IS ALMOST INSATIABLE BUT IT IS COMING AND GOING RELATIVELY QUICKLY. THE RIPPLE EFFECTS, COMING BACK TO THIS ANALOGY -- I AND OTHER MARKET PARTICIPANTS FEEL LIKE WE HAVE SEEN THIS STORY BEFORE. FEEL LIKE WE ARE DOOMED TO REPEAT IT A LITTLE BIT. THAT COULD BE A GOOD THING OR BAD THING DEPEND ON HOW YOUR POSITION. WE WILL SEE WINNERS, WE WILL SEE LOSERS. WE WILL SEE ACQUISITIONS, WE WILL SEE FAILURES. IT'S IMPOSSIBLE TO KNOW IN BASEBALL TERMS WHAT INNING WE ARE IN. IF YOU ASKED ME, WE ARE IN THE SEVENTH INNING STRETCH OF WHERE SALLY: MARGIN DRAG? MATT: WE WILL SEE COMPANIES LIKE THIS SHIFT TO MORE DILUTIVE TRANSACTIONS AT SOME POINT AS WELL. FOR NOW, EVEN THOUGH IN DOLLAR TERMS IT'S BEEN RELATIVELY HIGH FOR THE MARKET BROADLY AS A FUNCTION OF THEIR MARKET CAPITALIZATION, IT IS STILL NOT ALARMINGLY HIGH. FROM A DEBT TO EQUITY PERSPECTIVE IN THE CATEGORY, THEY ARE NOT WILDLY LEVERED YET. I THINK WE WILL CONTINUE TO SEE ISSUANCE. INVESTORS WILL CONTINUE TO PRICE IT. A NUMBER OF THESE VERY LARGE COMPANIES THAT SHOULD BE ISSUING PAPER AT WESLEY HIGH G LEVELS ARE LOOKING MORE LIKE BORDERLINE HIGH YIELD FROM THE SPREAD PERSPECTIVE. THE INVESTOR RESPONSE TO THAT IS A LITTLE BIT MORE CONCERNED ABOUT WHAT THEY WILL DO WITH THE MONEY, WILL WE BE COMPENSATED FOR IT? KATIE: IT WILL BE FASCINATING TO WATCH WHAT SORT OF DEMAND IS DEBT ISSUANCE IS A TRACT, ALSO WHAT SORT OF PREMIUM IS DEMANDED. GREAT TO KICK OFF THE SHOW WITH YOU. THAT IS MATT RAO, SENIOR PORTFOLIO MANAGER OVER AT MAN GROUP. COMING UP, A BIG WEEK FOR TECH RESULTS. STEVE WESTLY IS A FORMER TESLA BOARD MEMBER. HE JOINS THE PROGRAM AHEAD OF THE EV MAKERS EARNINGS. THE MAJOR WINNER EMERGING OFF THE PITCH AS IN SPAIN IS CROWNED WORLD CUP CHAMPIONS. WE WILL BREAK DOWN THE NUMBERS. AND CHRISTOPHER NOLAN'S "THE ODYSSEY" POSTING A RECORD DEBUT. RICH GELFOND IS HERE TO TALK ABOUT THE FILMS BLOCKBUSTER PERFORMANCE. ALL OF THAT AND MORE COMING UP. THIS IS "THE CLOSE" ON BLOOMBERG. KATIE: A NEW WEEK BRINGING FRESH AI JITTERS TO THE FORE AS CHINESE START UP MOONSHOT JOLTS THE MARKET WITH A SURPRISE RELEASE. THE COMPANY UNVEILING A NEW MODEL SITTING IT RIVALS THE BEST OFFERINGS FROM OPENAI AND ANTHROPIC AT A MUCH LOWER COST. LET'S DISCUSS WITH JESSICA INSKIP, DIRECTOR OF INVESTOR RESEARCH OVER AT STOCKBROKERS.COM. IT IS THE OBVIOUS COMPARISON. YOU THINK ABOUT WHEN DEEPSEEK CAME ONTO THE SCENE AND JANUARY 2020 FIVE, THE REACTION WAS SWIFT AND BRUTAL, ESPECIALLY WHEN IT CAME TO STOCKS SUCH AS NVIDIA. YOU THINK ABOUT WHAT WE ARE SEEING WITH MOONSHOT, KIMI, IS THIS A DEEPSEEK 2.0? JESSICA: IT IS IN THE INSTANT THAT IT IS OVERBLOWN. WE SAW THAT WHEN DEEPSEEK. THE FEAR WAS CAPEX SPENDING WOULD PULL BACK. THE ONLY ACCELERATED FROM THE FREE CASH FLOW CHART WE WERE SHOWING. I DO THINK THAT ANY ADVANCEMENT WITHIN ARTIFICIAL INTELLIGENCE INCREASES EFFICIENCY AND THERE ARE A LOT OF BOTTLENECKS. WE HAVE A LOT OF PLAYERS IN THE SPACE. THAT MEANS WE CAN BE MORE EFFICIENT WITH THE BOTTLENECKS. A BOTTLENECK THAT STILL REMAINS AS THE HIGH BANDWIDTH MEMORY. THAT IS MY WE ARE SEEING THE RALLY WITHIN THAT SPACE. ALSO INCREASINGLY ENOUGH, THERE IS LOTS OF ROOM FOR IMPROVEMENT. WHAT IS INTERESTING WITH WHAT IS HAPPENING HERE IN CHINA, IT IS THERE A BOTTLENECK. IT IS NOW SOFTWARE THAT THEY CAN UTILIZE ON ALMOST ANY CHIP MAY HAVE, WHEREAS WE ARE FOCUSING ON EFFICIENCY HERE IN THE STATES WITH THAT EXPERIMENTAL MODEL, JALAPENO FROM OPENAI. KATIE: IT'S INTERESTING WHEN YOU COME TO GOOGLE'S FROZEN. IT SEEMS LIKE EVERY MAJOR AI DEVELOPER IS WORKING ON THEIR OWN CHIP IN SOME WAY. SIMPLY A SIGN OF THE TIMES WHEN YOU THINK ABOUT WHAT WE ARE DEALING WITH IN THE U.S. SPECIFIC MARKET HERE. JESSICA: THEY ARE DEALING WITH THEIR OWN CHIPS BUT THEY ARE ALL MARCHING TOWARD THE SAME SOLUTION. THAT IS WHERE WE CAN FIND THE OPPORTUNITIES. WE SPOT THE BOTTLENECKS, SPOT THE OPPORTUNITIES FROM THERE. WE ARE IN THE YEAR OF AGENTIC AI , NOW REALLY UTILIZING THAT WITH AGENTS TAKING OFF. WITH AGENTIC AI COMES INFERENCE, WHICH COMES AT A CONTINUOUS COST. THAT REQUIRES A LOT OF MEMORY. THE SOLUTION IS WE NEED TO REDUCE THAT LOAD, THAT TALKING TO TIME. IT IS DOING A MATH EQUATION BUT IT IS WAITING IN LINE AT A CAFETERIA BASICALLY. WE NEED TO SPEED THAT UP. THAT HAPPENS WITH MORE EFFICIENCIES AND OUT-OF-THE-BOX THINKING, AND THAT IS WHAT GOOGLE IS DOING. IT IS A BIG PLAY BECAUSE THEY HAVE HUGE BACKLOGS THEY IT'S SOMETHING THEY ARE WILLING TO DO BUT IT IS A BIG BET THIS IS THE END-ALL ARCHITECTURE AND THAT IS WHAT IS INTERESTING AND WHERE THEY ARE CALLING IT EXPERIMENTAL. IF WE ARE PUTTING A MODEL DIRECTLY ON A CHIP, IT IS SPECIFIC TO GEMINI AND THAT INCREASES THE EFFICIENCY SPECIFICALLY BUT THAT IS ONLY AVAILABLE FOR MASS SCALE IF YOU ARE AN INDIVIDUAL UTILIZING THAT. >> SPEAKING ABOUT MOONSHOT, IF CHINESE MODELS LIKE THAT, IF THEY REQUIRE DRAMATICALLY LESS RESOURCES THAN WALL STREET NECESSARILY EXPECTED, DOES THIS TO A DEGREE INVALIDATE THE AGGRESSIVE TIMELINES THAT ARE PLANNED BY SOME U.S. HYPERSCALERS AND COULD THEY INDEED FEEL THE PRESSURE TO REDUCE THAT? >> I HOPE THEY DON'T REDUCE THAT BECAUSE IF WE LOOK AT GOING BACK TO THE BUBBLE, THE FIRST THING THAT PEAKED WAS THE GDI SPENT SO THAT WAS THREE YEARS PRIOR SO IT IS SOMETHING TO BE COGNIZANT OF. IT IS POSSIBLE THAT IT SHIFTS. CORPORATE AMERICA IS VERY AGILE, ESPECIALLY THESE TECH COMPANIES. I WOULD EXPECT TO SEE THAT PIVOT AS WELL. I DO NOT EXPECT TO SEE A PULLBACK ON CAPEX. IT WILL BE -- IT WILL BE A REDEPLOYMENT OF FUNDS. IT IS A CONTINUATION OF OPERATIONS. RATHER THAN BUILDING OUT. IT IS SOMETHING TO WATCH BECAUSE THAT CAN GIVE US AN IDEA OF THE RETURN ON INVESTMENT. >> FOR SHARE. WHEN ASKED A QUESTION HERE. UNDER THE U.S. SEMICONDUCTOR EXPORT CONTROLS, IS IT POSSIBLE FOR MODELS LIKE MOONSHOT TO TRULY REACH SCALE? >> IT IS POSSIBLE. I THINK THAT IS THE POINT OF IT IS THAT THEY COULD UTILIZE WHATEVER IT MEANS OUTSIDE OF THOSE CONTROLS AND THAT IS WHY IT IS SO INNOVATIVE BUT IT'S VERY DIFFERENT IN COMPARISON TO JALAPENO AND TO FROZEN. VERY FUNNY TO SAY THESE THINGS. IT IS SOFTWARE VERSUS HARDWARE SO THEY ARE TWO VERY DIFFERENT THINGS. IT IS DESIGNED TO GO OUTSIDE OF THAT IF YOU WILL. IT'S STILL GOING TO BE A SHIFT AT SOME POINT >> WE ARE TALKING OF COURSE ABOUT GOOGLES CHIP. GREAT TO GET SOME TIME WITH YOU. REALLY APPRECIATE THE CONTEXT. SHE IS DIRECTOR OF INVESTOR RESEARCH OVER AT STOCKBROKERS.COM. ALL EYES ON OFF A BIT AHEAD OF ITS EARNINGS REPORT ON WEDNESDAY. WE ARE GOING TO PREVIEW WHAT TO EXPECT AFTER THE BREAK. THIS IS THE CLOSE ON BLOOMBERG. ♪ >> IT'S TIME NOW FOR OUR TOP CALLS. A LOOK FOR SOME OF THE BIG MOVERS ON THE BACK OF ANALYST RECOMMENDATIONS. FIRST UP, URBAN OUTFITTERS. GOLDMAN SACHS UPGRADING SHARES TO BUY FROM NEUTRAL, SAYING URBAN OUTFITTERS CAN BOLSTER THE COMPANY'S PROFITABILITY. GOLDMAN UPGRADING THE PRICE TARGET TO $93, SENDING -- SAYING THEY ARE SCALING, LED BY THREE PEOPLE MOVEMENT. I HOPE I SAID THAT RIGHT. SHARES HIGHER BY 3.5%. NEXT IN LINE, U.S. BANK ANALYSTS OVER AT EVERCORE UPGRADING THE BANK TO OUTPERFORM FROM IN-LINE THANKS TO A ROBUST OUTLOOK AND IMPROVING FUNDAMENTALS. EVERCORE ALSO RAISING ITS PRICE TARGET ON THE STOCK FOR $72 FROM 65, SAYING IMPROVING FUNDAMENTALS WILL ENHANCE THE BANK'S EARNING TRAJECTORY. SHE IS JUST ABOUT UNCHANGED. FINALLY, WELLS FARGO CUTTING ITS RECOMMENDATION ON THE SOFTWARE COMPANY TO EQUAL WEIGHT FROM OVERWEIGHT, FLAGGING NEAR-TERM AI CONCERNS. ALSO LOWERING ITS PRICE TARGET TO $225 SAYING THE STRATEGIC INITIATIVES WILL INTRODUCE UNCERTAINTY FOR INVESTORS. SHARE SHAKING IT OFF, HIGHER BY 3%, AND THOSE ARE SOME OF OUR TOP CALLS. SHARES OF ALPHABET ON THE RISE ON A REPORT OF THE COMPANY DEVELOPING ITS OWN CUSTOM CHIP TO OPTIMIZE ITS AI MODEL, GEMINI. THIS COMES AHEAD OF ALPHABETS EARNINGS WHICH ARE DUE AFTER THE BELL ON WEDNESDAY. JOINING US NOW IS THE TECH SECTOR LEADER OF SOFTWARE AND INTERNET RESEARCH OVER AT JEFFERIES. GREAT TO HAVE YOU WITH US. WE WILL GET INTO THE BROADER EARNINGS OUTLOOK BUT FIRST, I WANT TO HEAR YOUR THOUGHTS ON THAT REPORT THAT BASICALLY YOU HAVE ALPHABET TRYING TO DEVELOP A SERVER CHIP DESIGNED TO OPTIMIZE GEMINI HERE. COULD BE DEPLOYED AS SOON AS 2028. WHAT DO YOU MAKE OF THIS AND THIS EFFORT? >> IS WHAT YOU WOULD EXPECT FROM GOOGLE. THEY HAVE A VERTICALLY INTEGRATED MODEL. THE INTERFACE THAT YOU AND I CAN INTERFACE ON A I GEMINI TO SEARCH TO CLOUD ALL THE WAY THROUGH TO THE FOUNDATIONAL SIDE OF THE CHIPS. THEY BUILT THEIR OWN COOLING RACKS. THEY ARE I THINK ONE OF THE BEST VERTICALLY INTEGRATED AI PLAYS WE COVER BECAUSE THEY ARE BUILDING ALL THE COMPONENTS. IT'S LIKE HAVING THIS AMAZING HOME BUT YOU GOT TO GO TO THE GROCERY STORE TO GET MILK. THEY CAN EFFECTIVELY OPENER AND BACK DOORS BECAUSE THEY HAVE ALWAYS ASKED IF THEY CAN UTILIZE FOR COOLING CHIPS, THE DATA, THE USERS AVAILABLE RIGHT IN THEIR OWN BACKYARD. THEY HAVE ALL THESE COMPONENTS AND IT GIVES YOU A CONTINUED ADVANTAGE IN THE AI WORLD. OTHERS LIKE MICROSOFT HAVE TO LEVERAGE OTHERS IN THE INDUSTRY . THIS ANALOGY OF THEY OWN THE BIGGEST AI RANCH AND THEY HAVE THE CATTLE AND THE SHEEP, THE FLOWERS AND THEY GOT EVERYTHING BUILT IN WHICH IS KIND OF WHAT YOU WANT AS AN INVESTOR. CAN THEY DO IT AS WELL AND CAN THEY DO IT CHEAPER? 40% OPERATING MARGIN. IT'S PRETTY AMAZING WHAT THEY ARE DOING. >> THEY HAVE ALL THE THINGS A RANCHER AN INVESTOR WOULD WANT IF IT COMES TO ALPHABET'S BUSINESS HERE. TAKE A LOOK AT THE SHARES. THEY ARE HIGHER BY 12.5% ON THE TOTAL RETURN BASIS YEAR TO DATE, OUTPERFORMING THE BRYANT -- BROADER S&P 500. THE BEAR CASE, THINK ABOUT THEIR CORE SEARCH ADVERTISING BUSINESS. THE FEARS THAT MAY BE THAT CAN MODERATE A LITTLE BIT AS MAYBE ANTHROPIC AND OPENAI GAIN SOME MARKET SHARE. HOW ARE YOU FACTORING THAT INTO YOUR ANALYSIS? I WILL KNOW THAT YOU HAVE A BUY RATING WHEN IT COMES TO ALPHABET. >> THERE IS ROOM FOR THREE BIG VENDORS AND IT'S GOING TO BE OPENAI AND ANTHROPIC. OPEN SOURCE WILL THRIVE. THE SYMPHONY IF YOU WILL OF MULTIPLE BAND MEMBERS IN THAT FROM MULTIPLE AD COMPANIES. EVERY MARKET HAS A LEADER, A CHALLENGER, AND A FOLLOWER AND BELIEVE THEY ARE IN A REALLY GOOD SPOT FROM THAT PERSPECTIVE. >> THEY ARE DESIGNED TO OPTIMIZE GEMINI'S EFFICIENCY AND WITH CAPEX UNDER THE MICROSCOPE NOW, SO MUCH, HOW COULD THIS ADDRESS AND COMPRESS ALPHABETS LONG-TERM -- >> IT'S UNCLEAR. WE DON'T REALLY KNOW AND WE DON'T KNOW ALL THE CAPABILITIES OF THIS BUT I THINK TO YOUR POINT, THE CAPEX HAS BEEN THE BIGGEST ISSUE AND CAPEX CONTINUES TO GO HIGHER. WE DON'T SEE ANY REASON WHY CAPEX ISN'T GOING HIGHER. THE MAGNITUDE AND THE RATE OF CHANGE AS WE GO INTO NEXT YEAR, WE THINK IT WILL COMPRESS. 70%, 80% CAPEX GROWTH THIS YEAR AND WE BELIEVE IT WILL GO TO 50%. ABSOLUTE CAPEX GOES HIGHER FOR THE INDUSTRY. THE ACTUAL GROWTH WE THINK WILL START TO SUBSIDE IN TERMS OF THE GROWTH RATES WE HAVE BEEN SEEING THE LAST COUPLE YEARS. IN TERMS OF WHAT THESE INDIVIDUAL SYSTEMS WILL DO, IT IS REALLY HARD TO SAY. RIGHT NOW WHEN YOU HAVE A LEAD AND WE KNOW THAT ENTERPRISE AI IS -- WE ARE IN THE FIRST 5% OF ENTERPRISE AI AND MAY BE IN THE FIRST 10% TO 15% OF CONSUMER AI, NO ONE IS TAKING THEIR FOOT OFF THE GAS IN SO I DON'T THINK -- DON'T BRACE YOURSELF FOR A CHANGE IN DOWNGRADE AND CAPEX. THE GROWTH RATE WILL START TO SLOW AS WE GO INTO 2027. >> GREAT TO PREVIEW SOME OF THE ACTION. THAT IS THE TECH SECTOR LEADER OF SOFTWARE AND INTERNET RESEARCH OVER AT JEFFERIES. TESLA GETTING READY TO REPORT EARNINGS ON WEDNESDAY AND BUSINESS IS A TALE OF THREE CITIES ACCORDING TO SEE WESLEY. HE JOINS US NEXT. THIS IS THE CLOSE ON BLOOMBERG. KATIE: 3:30 P.M. IN NEW YORK. THIS IS THE COUNTDOWN TO THE CLOSE. WE ARE KEEPING OUR EYES ON A VERY BIG EARNINGS WEEK AHEAD. YOU THINK ABOUT THE CALENDAR. ALL THE DIFFERENT HEAVY HITTERS WE HAVE COMING UP. SALLY: WE HAVE ALPHABET, INTEL. THE STRONG RESULTS FROM ALPHABET FROM GOOGLE CLOUD BUSINESS AND INTEL'S DATA CENTER CHIP MAKING UNITS WERE REALLY REINFORCED THIS VIEW THAT HYPERSCALERS AND HARDWARE MAKERS ARE CAPTURING THAT DISCRETIONARY SOFTWARE SPENDING WHICH THERE'S BEEN A LOT OF SCRUTINY OVER. KATIE: WE SAW THAT STORY TAKING A BITE OUT OF IBM BUT LET'S TALK ABOUT THAT BIG RED ICON THERE REPORTING WEDNESDAY, TESLA TAKING THE STAGE AFTER THEY DELIVERED SECOND-QUARTER VEHICLE DELIVERIES. JOINT STUDENT -- FOUNDER AND MANAGING PARTNER OF WESTLY GROUP. AS I MENTIONED YOU THINK ABOUT THE SECOND QUARTER VEHICLE DELIVERIES THEY BEAT EXPECTATIONS, THEY WENT OVER SMOOTHLY. YOU SAY TESLA RIGHT NOW IT'S A COMPANY THAT IS A TALE OF THREE DIFFERENT CITIES. ENUMERATE THAT FOR US. >> YOU BET. GIVE CREDIT TO TESLA FOR ITS STRONG QUARTER. 480 THOUSAND UNITS. 25% YEAR-OVER-YEAR GROWTH. BUT SALES APPEAR TO BE RISING ON HIGH GAS PRICES. STILL LOOKS TO BE ABOUT 95 BILLION. THE FOURTH CONSECUTIVE YEAR FLAT GROWTH. SO THE BIG ISSUE HERE IS THEIR SOLE FORECASTING FLATTER REVENUE. WHAT'S CAN HAPPEN. I THINK IT IS THIS TALE OF THREE CITIES. RIDING A WAVE OF INCREASED GAS PRICES. EVERYBODY IS WAITING FOR TECH TO FINALLY BECOME REAL. CAN THEY GET MORE SELF DRIVING LICENSES, CAN IT GET INTO MARKET SOONER. THEY'RE A LITTLE LATE ON THAT. I THINK WHAT INVESTORS SHOULD BE WATCHING IN THE ENERGY DIVISION IS TAKING OFF. 2026 REVENUE UP ABOUT 35%. BUT IF YOU'RE TRACKING THIS THEY ARE ABOUT TO LAUNCH THE NEXT NEW FACILITY 15 KILOWATTS IN TEXAS. THIS COULD MAKE TESLA ENORMOUS AUTO AND ENERGY COMPANY THAT PERSISTS ANY TIME. THE WORLD IS CLAMORING FOR MORE ENERGY TO POWER THE WORLD'S DATA CENTERS IN THE AI REVOLUTION. IF THEY DO THAT WE EXPECT PRICES TO GO UP. KATIE: I'M GLAD YOU BROUGHT UP THE ENERGY DIVISION. FOR A WHILE IT FELT LIKE IT WAS THE BEST KEPT SECRET WHEN IT COMES TO TESLA. I WONDER, IS THAT STILL THE CASE. DO YOU THINK THE ENERGY DIVISION AND THE POTENTIAL RUNWAY THERE YOU THINK THAT IS SHOWING UP IN THE VALUATIONS IN THE SHARE PERFORMANCE? STEVE: THEY THINK ABOUT CAR COMPANIES OVER HERE AND THEN BIG ENERGY COMPANIES LIKE NEXT ERA OVER HERE. THE THIRD LARGEST APPRECIATED STOCK IN THE WORLD LAST YEAR AFTER NVIDIA'S OF ARE GETTING THAT BUT THEY'RE NOT REALIZING IT TESLA'S QUIETLY BECOME A MAJOR BATTERY PRODUCTION COMPANY. WITH A HUGE FACILITY AND PLAY FOR CALIFORNIA. ONE IN SHANGHAI. ABOUT TO PUT THIS IN ONE ONLINE IN TEXAS 50 GIGAWATTS IS AN ENORMOUS NUMBER. THE REASON THAT IS SO KEY IS WITH THE EXPLOSION IN DATA CENTERS TO POWER THIS AI REVOLUTION EVERY UTILITY EXECUTIVE IN THE COUNTRY IS LOOKING FOR NEW SOURCES OF POWER. IF THEY CAN BE ONE OF THOSE LEADERS PROVIDING NOT JUST GIGE PACKS, ONE TO TWO MEGAWATT BOXES , IF THEY CAN PROVIDE FULL ENERGY WALLS THAT CAN PROVIDE AS MUCH AS A GIGAWATT OF POWER THAT WILL PUT THEM LEFT RIGHT AND CENTER. AND THAT'S WHAT THE WORLD WANTS RIGHT NOW. STAY TUNED. TESLA MAY BE MORE THAN THE AUTO COMPANY WE THOUGHT. JONATHAN: WHEN IT COMES TO -- SALLY: DO YOU THINK TESLA IS SUCCESSFULLY GOING TO DO THOSE THINGS. SOME INVESTORS CERTAINLY FEEL LIKE OPTIMIST -- ALL THIS IS A BIT OF ALL OF MIRRORS. STEVE: THEY CONTINUE TO IMPROVE THEIR SELF-DRIVING. BUT AT THE END OF THE DAY YOU MONETIZE THIS YEAR OF THE SHOW ROBOTAXIS ARE REAL AND TO DO THAT YOU NEED REGULATORY APPROVAL. AND THAT MEANS PASSING RIGOROUS TESTS FROM A LEVEL TO THE LEVEL THREE TO GET REGULATORY APPROVAL. THIS IS WHAT WE NOTE. TESLA REGULATORY APPROVAL, SAN FRANCISCO AND AUSTIN. ALREADY MOVING IN 11 CITIES ALL OVER THE COUNTRY ABOUT TO OPEN UP TOKYO, LONDON SAYING 24 STATES BY THE END OF THE YEAR. TESLA HAS GOT TO CLOSE SOME OF THAT GAP. THE KEY PIECE INVESTORS NEED TO BE WATCHING HIS CAN TESLA GET APPROVAL ON FREEWAY DRIVING. ONCE YOU GET FREEWAY DRIVING YOU CAN OPEN UP AREAS LIKE SAN FRANCISCO NOT JUST DOWNTOWN SAN FRANCISCO BUT THE ENTIRE BAY AREA ROUGHLY 3 MILLION PEOPLE THAT WAY MOST SEARCH TODAY. THEY'VE GOT THE WORK CUT OUT FOR THEM. SALLY: WHEN IT COMES TO CLOSING OF THE GAP SO CAN TESLA REGAIN THE TOP SPOT FROM BYD? STEVE: THAT IS THE BIG QUESTION. RIGHT NOW I THINK THAT IS A LONGER SHOT. BYD HAS A DIFFERENT STRATEGY THEY ARE NOT TALKING ABOUT A TECHNOLOGY COMPANY, THEY ARE NOT TALKING ABOUT BEING AN ENERGY COMPANY THEY ARE JUST SAYING THE PRE-BATTERY PROVIDERS. ON THE LOW END OF THE MARKET THEY'RE MAKING AN ABSOLUTELY TREMENDOUS $19,000 BYD RUNNING ON THE PART OF THE WORLD BEING SOLD. EVENTUALLY DOMINATING THE CHINESE MARKET. CHINA THE LARGEST AUTO MARKET IN THE WORLD AT ONE POINT, EIGHT TIMES THE SIZE ALMOST TWO X THE SIZE OF THE U.S. MARKET. THEY ARE REALLY TACKLING THE REST OF THE WORLD. THEY'VE PUT FACTORIES IN PLACE IN CAMBODIA, INDONESIA, THAILAND, BRAZIL, NOW HUNGARY. THEY HAVE GLOBAL PRODUCTION NETWORK. BYD CAME OUT THIS LAST WEEK AND SAID WE ARE NOT JUST GOING TO BE THE COMPANY BY 2030 WE PLAN TO MAKE MORE CARS THAN TOYOTA. IF THEY DO THAT IT'S HARD TO SAY WHO IS GOING TO CATCH THEM. KATIE: CERTAINLY A LOFTY GOAL THERE. IT WILL BE FASCINATING TO SEE WHETHER OR NOT THEY DO CINCH THAT. I WANT TO GET YOUR PERSPECTIVE ON THE ELON MUSK OF IT ALL. YOU THINK ABOUT TESLA AND THE ADDITION OF SPACE X INTO THE PUBLIC MARKETS, IT'S TALKED ABOUT ALMOST AS A GIVEN THAT WE WILL SEE SOME SORT OF MERGER THERE. BUT WE WILL SEE SPACE X ABSORB TESLA. I WONDER IN YOUR VIEW IN YOUR EXPERIENCE WITH THE COMPANY AND ELON MUSK IS THAT AN INEVITABILITY TO YOU AS WELL. STEVE: I THINK IT'S PRETTY LIKELY TO HAPPEN BUT THAT'S UP TO TESLA AND THE SPACE X BOARDS. I THINK THE THINKING WOULD BE IT'S GOING TO BE EASIER OVER ONE COMPANY IT'S PROBABLY A LOT OF SYNERGIES. YOU CAN USE SOME OF THE TESLA PROFITABILITY TO HELP BUILD OUT SPACE X. I HAVE A HUNCH IT'S LIKELY TO HAPPEN. CERTAINLY WILL BE A LOT OF REGULATORY ISSUES TO GET OVER AND CERTAINLY MAKE ONE HECK OF A LARGE COMPANY. KATIE: STEVE ALWAYS GOING TO GET SOME TIME WITH YOU. FORMER TESLA BOARD DIRECTOR FOUNDER AND MANAGING PARTNER OF WESLEY GROUP. THE BLOCKBUSTER DEAL OF THE MOMENT HITTING A MAJOR SNAG. WHO UNPACKED THE LATEST DEVELOPMENTS WITH WARNER BROS. AND PARAMOUNT IN TODAY'S STOCK OF THE HOUR UP NEXT. THIS IS THE CLOSE ON BLOOMBERG. KATIE: OUR STOCK OF THE HOUR IS A TWOFER. PARAMOUNT SKYDANCE AND WARNER BROS.. SHARES LOWER. PARAMOUNT ALSO WAVERING AFTER BLOCKBUSTER DEAL WAS HALTED BY A FEDERAL JUDGE. JOINING US WITH MORE IS CHRIS PALMERI JOINING US ON SET IN NEW YORK WHICH IS A RARE TREAT. THANK GOODNESS YOU ARE HERE BECAUSE I NEED SOME CONTEXT. WAS THIS EXPECTED IN ANY SORT OF WAY AND WHAT IS THE NEXT STEP? >> PARAMOUNT WAS VERY CLOSE TO CLOSING THIS DEAL. THEY GOT DOJ APPROVAL THEY WERE EXPECTING ON WEDNESDAY FROM REGULATORS TO APPROVE WITH JUST MINOR CONCESSIONS AND SAID WE HAVE THIS LAWSUIT 12 STATES AND ATTORNEYS GENERAL SUING AND NOW WE HAVE TO HALT. OBVIOUSLY NOT GOING TO CLOSE THIS WEEK. AUGUST 3 THERE WILL BE ANOTHER HEARING, COULD BE AN EXTENDED INJUNCTION SO THEY COULD CLOSE UNTIL AFTER A COURT RULING IN THAT DECISION. THE STATE SORT OF ASKING FOR A HEARING NEXT YEAR. BIG PENALTIES FOR PARAMOUNT IF THEY DON'T CLOSE BY THE END OF SEPTEMBER. MILLIONS OF DOLLARS A DAY IN FEES PAID TO WARNER BROS. SHAREHOLDERS. IF THIS FALLS APART A 7 BILLION DOLLAR BREAKUP FEE. A LOT AT STAKE FOR PARAMOUNT. SALLY: IS THERE ONE PARTICULAR STICKING POINT HERE. IS THERE A POTENTIAL TO ADDRESS IT OR FOR THE DEAL TO BE A RISE ADVISED OR RESTRUCTURED IN A WAY. >> WHEN YOU LOOK AT THE STOCK MARKET'S REACTION WHEN THIS WAS FILED AND TODAY'S NEWS IT'S NOT A COMPLETE COLLAPSE IN A DON'T THINK INVESTORS BELIEVE THERE'S A WAY OUT. I THINK THERE'S POTENTIAL FOR SOME SETTLEMENT WITH THE ATTORNEYS GENERAL. THEY SAID THEY DON'T WANT SOME SORT OF REMEDY THAT IS AGREED TO DO SOMETHING WE WILL RELEASE 30 MOVIES A YEAR IN THEATERS, THAT KIND OF THING. THEY'VE TALKED ABOUT SOME ACTUAL PROPERTIES. WHETHER THEY HASH OUT THE DETAILS IT'S CERTAINLY POSSIBLE. THIS IS THE STRONGEST CASE THEY'VE BROUGHT SO MAYBE THERE IS A FACE-SAVING WAY TO COME OUT OF IT. KATIE: YOU REFLECT ON THE ROAD THIS DEAL HAS TAKEN. THERE WERE VERY CLOSE TO CLOSING IT LOOKS LIKE THAT'S GOING TO BE DELAYED CERTAINLY NOT HAPPENING THIS WEEK. THINK ABOUT WHAT IT TOOK FOR PARAMOUNT TO EVEN BRIDGE THIS DEAL. THEY WERE NECK AND NECK WITH NETFLIX FOR MONTHS HERE. >> BRUTAL FEW YEARS FOR DAVID ELLISON. FIRST OF ALL GETTING THE PARAMOUNT DEAL DONE AND EMERGING'S GUIDANCE WITH PARAMOUNT AND NOW THIS WHERE HE INITIALLY LOST TO NETFLIX, PAYING NETFLIX TWO POINT $8 BILLION BREAKUP FEE TO GET THEM TO GO AWAY AND NOW THIS FIGHT. IT IS PRETTY OBVIOUS HE REALLY WANTS TO STEAL TO HAPPEN. AND HE IS GOING TO WORK AS HARD AS HE CAN TO MAKE IT SO. >> IT WILL BE FUN TO FIGURE OUT WHERE EXACTLY IT GOES FROM HERE. THAT IS BLOOMBERG CHRIS PALMERI JOINING US ON THE TAKE A QUICK LOOK AT WHAT IS GOING ON IN THE BROADER INDEXES ON THIS MONDAY AFTERNOON. THE S&P 500 DID DIP INTO NEGATIVE TERRITORY A LITTLE BIT EARLIER TODAY. THE NASDAQ 100 LOOKS LIKE THEY WERE GETTING PRETTY CLOSE TO ERASING GAINS. IT LOOKS LIKE WE ARE GOING TO FINISH IN THE GREEN BUT WE KNOW IT'S A CONSEQUENTIAL WEEK FOR A LOT OF THESE BIG TECH NAMES. >> THE SEMICONDUCTORS HAD A BAD WEEK LAST WEEK BUT THE WEEK HAS OPENED WITH A LITTLE BIT MORE BELIEF IN THE AI INFRASTRUCTURE TRADE. INVESTORS SEEM TO BE BUYING SOME OF THE DIP AND ARE COMING BACK IN AND WE HAVE SEEN THE NASDAQ RISE A LITTLE BIT IN RESPONSE TO THAT. >> WE ARE GOING TO TALK A LITTLE BIT ABOUT HOW THE MARKET'S POSITION HEADING INTO A VERY HEFTY CALENDAR, COMING UP NEXT WITH AMY BLOOM SILVERMAN OF RBC CAPITAL. THIS IS THE CLOSE ON BLOOMBERG. >> WELCOME BACK TO THE CLOSE. I AM KATIE GREIFELD ALONGSIDE SALLY. LESS THAN 10 MINUTES TO GO UNTIL THOSE CLOSING BELLS. HERE IS THE SET UP ON YOUR MONDAY AFTERNOON. YOU CAN SEE THE S&P 500 DIPPING INTO THE RED. WE ARE COMING OFF A WEEK OF LOSSES FOR THE INDEX AND YOU CAN SEE THAT SENTIMENT HAS NOT QUITE RECOVERED TODAY. THE NASDAQ 100, HANGING ONTO THEIR GATE -- IT'S GAINS, HIGHER BY POINT 2%, WELL OFF OF SESSION HIGHS TO BRING ALSO CAUGHT IN THE CROSS HAIRS WHEN IT COMES TO WHAT IS GOING ON THE GEOPOLITICAL LANDSCAPE WITH THE LEVEL INCHING BACK UP TOWARDS $90 A BARREL ALL AS BONDS SELLOFF. 10-YEAR TREASURY YIELD HIGHER BY FOUR BASIS POINTS. NOT EXACTLY PROVIDING MUCH OF A CUSHION, MUCH OF A HAVEN GOING ON IN THE EQUITY MARKET RIGHT NOW. LET'S GET RIGHT TO IT WITH AMY SILVERMAN, HEAD OF DERIVATIVES STRATEGY OVER AT RBC CAPITAL MARKETS. AMY, IT'S GREAT TO SEE YOU. SO IT'S A HEFTY CALENDAR COMING UP WHEN IT COMES TO THE TECH NAMES AND ITS LANDING AT A REALLY INTERESTING TIME BECAUSE YOU THINK ABOUT THE CONVERSATION HAPPENING WHEN IT COMES TO THE DYNAMIC BETWEEN THE SEMICONDUCTORS'S, THE HYPERSCALERS. WE HAVE SEEN FREE CASH FLOW ESTIMATES SORT OF FLIP-FLOP. WE HAVE SEEN A LOT OF WORRIES ABOUT WHAT IS GOING TO HAPPEN IF WE HAVE SEEN ANY HINT OF THESE HYPERSCALERS MAY BE THINKING ABOUT PULLING BACK ON THEIR CAPEX PLANS. HOW INVESTORS ARE PREPARING FOR THIS WEEK, WHAT DO YOU SEE? >> WHAT I THINK IS SO INTERESTING AS I KNOW FOLKS HAVE CALLED THIS JUST A GENERATIONAL TRANSFER FREE CASH FLOW IF YOU WILL. BUT OBVIOUSLY, THE SEMIS AND HYPERSCALERS ARE INEXTRICABLY LINKED. THIS WEEKEND, THE MOST IMPORTANT THING IS WHAT IS THE OPTIONS MARKET PRICING FOR GOOGLE EARNINGS? I CAN TELL YOU IT'S ACTUALLY FAIRLY SANGUINE AND I THOUGHT THAT WAS SO INTERESTING BECAUSE SO MUCH INFLECTION WOULD HAPPEN IF THERE WAS ANY INKLING OF THE, YOU KNOW, PERHAPS WE WILL TAKE IT BACK A NOTCH. THAT IS CERTAINLY NOT WHAT IS BEING PRICED INTO THE SCHEME SO WE ARE NOT SEEING AN INCREASE IN HEDGING DEMAND. IN FACT, WHEN YOU LOOK AT NORMALIZED LEVELS, JUST THE DEMAND FOR HEDGING ACROSS ALL TENORS, NOT JUST IN ONE MONTH, IT IS ESSENTIALLY CLOSE TO THE ONE YEAR LOWS. THAT'S A REALLY INTERESTING TIDBIT BUT ON THE OTHER HAND, OBVIOUSLY, NOT TOO SURPRISING GIVEN JUST HOW DRAMATIC THE DRAWDOWN WAS. YOU ARE SEEING OVERALL HEDGING PICKING UP A LITTLE. >> THAT IS REALLY INTERESTING ESPECIALLY WHEN IT COMES TO SOME OF THE SPECIFIC MOVEMENTS AROUND GOOGLE AND ALPHABET IN PARTICULAR BUT YOU THINK ABOUT ALPHABET. I MEAN, IT IS OUTPERFORMING THE REST OF ITS MAGNIFICENT 7 PEER GROUP. WE ARE QUESTIONING WHETHER OR NOT THAT MIGHT OCCUR IS STILL RELEVANT. DO THEY STAND APART FROM TOMATO, SOME OF THE POSITIONING WHEN IT COMES TO THOSE OTHER MAGNIFICENT 7 NAMES WHICH MAYBE ARE NOT HOLDING UP AS WELL AS ALPHABET IN THIS ENVIRONMENT? >> THE SECOND LAYER OF ANALYSIS WE ASKED IS IS THIS JUST TRUE ALPHABET OR IS THIS TRUE IN GENERAL FOR THE HYPERSCALERS? I WILL SAY THERE WAS ONE NUANCE IN OPTIONS NOW. BECAUSE DURATION HAS BECOME SO SHORT AND BECAUSE THERE'S SO MANY MORE FOLKS TRADING ONE-WEEK OPTIONS, IT'S TRUE THAT IN GENERAL, YOUR SIGNALS REALLY ONLY HAPPEN KIND OF ONE WEEK BEFORE EARNINGS. RIGHT NOW WHEN YOU LOOK AT THE OTHER HYPERSCALERS, YOU ALSO DON'T SEE A NOTABLE PICKUP IN THAT BEARISH SENTIMENT SO IT'S NOT JUST THE GOOGLE THING. IT'S KIND OF AN ACROSS THE BOARD DESPITE KIND OF AGAIN THE INEXTRICABLE RELATIONSHIP YOU HAVE BUT OF COURSE TO GIVE THE CAVEAT, THIS COULD BE NOT TRUE, YOU KNOW, ONE WEEK FROM NOW WHEN WE GET CLOSER TO THE OTHER EARNINGS THAT ARE GOING TO HAPPEN OBVIOUSLY THIS WEEK AND NEXT WEEK. WE GET A HEFTY CONCENTRATION OVERALL OF MARKET CAP BEING REPORTED. >> I WANTED TO ASK YOU ABOUT THE RECENT ANTI-AI, ANTI-DATA CENTER PUSHBACK THAT WE ARE HAVING. IF THAT BEGINS TO REALLY DOMINATE THE POLITICAL NARRATIVE, HOW DO YOU EXPECT THAT TO SHOW UP IN THE OPTIONS MARKET? ARE YOU ALREADY SEEN CLIENTS KIND OF HEDGE FOR POLITICAL OR REGULATORY RISK IN BIG TECH? AMY: I WAS LOOKING AT THE DATES. OCTOBER 27TH, YOU HAVE ISRAELI ELECTIONS AND THEN SHORTLY THEREAFTER, NOVEMBER, YOU HAVE U.S. MIDTERMS. RIGHT NOW, TO ANSWER YOUR QUESTION, YOU DON'T SEE TERM STRUCTURE. ESSENTIALLY, THAT KIND OF FORWARD-LOOKING VOLATILITY HAS IN PARTICULAR SPIKED DUE TO THOSE EVENTS. JUST THE NUANCE OF WE ARE JUST SEEING SHORTER AND SHORTER DURATIONS TRADING IN GENERAL. HOWEVER, WHEN WE HAVE CONVERSATIONS WITH CLIENTS, AND THIS LITERALLY HAPPENED LAST WEEK, ONE CLIENT -- WHAT IS THE FIRST THING THEY ASK ABOUT THE MORATORIUM THAT KATHY HOCHUL PLACED ON DATA CENTERS IN NEW YORK? IT'S A MORATORIUM. IT'S NOT A BAN. HOWEVER, THE ANTI-AI SENTIMENT, WHETHER IT BE YOU ARE AT A COMMENCEMENT SPEECH AND THE KIDS ARE DOING OR EVEN SOMETHING -- BOOING, YOU ARE STARTING TO SEE THIS OVERALL PICK UP AND I AM CURIOUS IF IT STARTS BECOMING AN ELECTION ISSUE WHICH OBVIOUSLY NOT ONLY HAS POLICY IMPLICATIONS , IT HAS HUGE MARKET IMPLICATIONS IF WE START TO SEE THAT PIC UP IN THE TERM STRUCTURE OF OPTIONS. -- PICKUP IN THE TERM STRUCTURE OF OPTIONS. >> GIVEN HOW MUCH TEXT GOT PUNISHED LAST WEEK, ARE STRONG NUMBERS NO LONGER ENOUGH? A COMPANIES NEED TO PROVIDE FLAWLESS GUIDANCE JUST TO KEEP THEIR STOCK PRICES FLAT? >> I THINK GOOGLE IS GOING TO BE A GOOD BOGEY FOR THIS RIGHT NOW WHEN YOU LOOK AT JUST THE IMPLIED MOVE FOR OPTIONS. AGAIN, THEY ARE NOT THAT HIGH SO THEY ARE KIND OF PLUS OR -5.5%. YOU HAVE AN AVERAGE REALIZED MOVE ROUGHLY AROUND FOUR BUT IF YOU REMEMBER BACK TO LAST QUARTER, THERE IS A 10% MOVE SO THAT KIND OF MORE RECENT QUARTER HAS LARGER MAGNITUDE AND SPEND EUROPE OVERALL AND I WOULD SAY THAT IF YOU START TO SEE AS WE GET A LITTLE BIT CLOSER WITH A REALLY BIG PICKUP IN THE HEDGING, NOT ONLY FOR GOOGLE BUT IN GENERAL POST THAT FROM THE OTHER HYPERSCALERS, THEN I WOULD START TO SAY YOUR EXPECTATIONS ARE GOING TO BE RESET. >> LESS THAN A MINUTE LEFT BUT I AM SO CURIOUS TO GET YOUR PERSPECTIVE ON SPACEX AND WHAT IS GOING ON BETWEEN THE TWO BIG INDEXES? IT'S IN THE NASDAQ 100. HAVE YOU SEEN ANY NUANCES WHEN IT COMES TO HOW THOSE TWO INDEXES ARE BEING TRADED? >> I WAS DYING TO TALK ABOUT IT LAST TIME. NOW, I CAN. THE ONE REALLY BIG LET'S STRUCTURE THING -- META STRUCTURE THING, IT HAS A REASON TO REMAIN BIG. WITH FUTURE IPO'S, WHEN THEY FAST-TRACK INTO ONE AND NOT THE OTHER AND YOU HAVE GOT THAT DELAY, I THINK THERE IS A STRUCTURAL REASON WHY THAT VOLATILITY SPREAD ALSO REMAINS INFLATED. >> IT WILL BE SO FUN TO SEE WHAT DEVELOPS WHEN IT COMES TO THE MEGA IPO'S, HOW THEY ARE TREATED BY THE BENCHMARKS. REALLY APPRECIATE YOUR TIME. SHE IS HEAD OF DERIVATIVES STRATEGY OVER AT RBC CAPITAL MARKETS, HELPING US TO PREVIEW WHAT IS GOING TO BE A BIG WEEK OF TECH EARNINGS AND YOU TAKE A LOOK AT HOW THE MARKETS ARE TRADED AS WE GET CLOSE HERE. THE S&P 500 IS IN THE RED. THE NASDAQ 100 DOING ITS BEST TO STAY IN THE GREEN. WE ARE MOVING CLOSER AND CLOSER TO THE CLOSING BELL. ALL THE WHILE FULL MARKET COVERAGE WITH THE GLOBAL SIMULCAST. >> THE CLOSING BELL, BLOOMBERG'S COMPREHENSIVE CROSS-PLATFORM COVERAGE OF THE U.S. MARKET BELL STARTS RIGHT NOW. KATIE: ABOUT TWO MINUTES AWAY FROM THE END OF THE TRADING DAY. KATIE GREIFELD ALONGSIDE SALLY BAKEWELL. SHE IS IN FOR ROMAINE BOSTICK. HERE TO HELP TAKE US THROUGH THE CLOSING BELL, IT A GLOBAL SIMULCAST. WE ARE JOINED BY CAROL MASSAR AND TIM STENOVEC. CAROL, A BIT OF A HEAVY TRADE THAT DEVELOPED IN THE LAST FEW HOURS HERE. CAROL: YEAH. KIND OF INTERESTING. ARE YOU BEING FACETIOUS? KATIE: NO, NOT AT ALL. CAROL: I DON'T KNOW. THE S&P, I WILL GO THERE. LITTLE CHANGED. AT ONE POINT UNCHANGED. IF YOU GO INSIDE THE INDEX, MOST NAMES, 331, TO THE DOWNSIDE. DEFINITELY MORE OF A RISK OFF TRADE TODAY. TIM: MORE OF A RISK OF TRADE, BUT OIL MOVING EVER SO SLIGHTLY HIGHER. I THINK SOME FOLKS OUT THERE ARE SURPRISED IT IS NOT MOVING HIGHER ON THE DAY TODAY GIVEN THE CONFLICT IN THE MIDDLE EAST ESCALATING. BRENT CLOSE TO $89 A BARREL. WE SAW GAS PRICES ABOVE FOUR DOLLARS A GALLON ACCORDING TO AAA EARLIER TODAY. SALLY: WE ALSO SEE THE S&P 500 IS UP, HELPED BY THIS BOUNCE IN CHIPMAKERS AFTER LAST WEEK, PROMPTING INVESTORS TO BUY THE DIP. ALPHABET, AMAZON, MICROSOFT HELPED PROP UP THE INDEX. APPLE AND TESLA KEPT SOME OF THE GAINS IN CHECK. KATIE: IF YOU LIKE WE ARE IN A BIT OF A WAIT AND SEE MODE. TECH EARNINGS THIS WEEK. NOT TO MENTION THE FED MEETING NEXT WEEK. BUT I AM GETTING AHEAD OF MYSELF BECAUSE YOU TAKE A LOOK AT WHERE WE WILL FINISH OFF ON THIS MONDAY, JUST ABOUT 12 SECONDS AWAY FROM THE CLOSING BELLS, THE S&P 500 WILL FINISH ABOUT 0.2% LOWER. IN THE GREEN EARLIER TODAY BUT DRIFTING LOWER INTO THE CLOSE. THE NASDAQ LOOKS LIKE IT WILL CLOSE IN THE RED AS WELL AS THOSE OFFICIAL NUMBERS SETTLE HERE. THE DOW JONES INDUSTRIAL AVERAGE, IF YOU PUT ANY STOCK IN THAT, WILL FINISH 0.6% LOWER. CAROL: THE DOW SAYS THANK YOU FOR MENTIONING ME. S&P 500, BACK THERE WE GO. AS I SAID EARLIER, MOST OF THE NAMES IN THE S&P 500 LOWER. 337 TO THE DOWNSIDE. 165 GAINING GROUND. ONE UNCHANGED. KATIE: SAME STORY WHEN YOU TAKE A LOOK AT THE SECOND LEVEL MEASURED BY OUR FRIEND THE CIRCLE HERE. MANAGED TO FINISH IN THE GREEN. SO DID INFORMATION TECHNOLOGY AND ENERGY. THOSE ARE YOUR THREE LOAN GAINERS TODAY ON THE SECTOR LEVEL. EIGHT SECTORS FINISHING IN NEGATIVE TERRITORY. YOUR BIGGEST LOSER, HEALTH CARE DOWN BY MORE THAN 1% FOLLOWED BY MATERIALS AND INDUSTRIALS. CAROL: LET'S GO TO SOME OF THE INDIVIDUAL GAINERS IF I MAY. THIS ONE A TOP GAINER IN THE S&P 500 AND NASDAQ 100. NUMBER TWO IN THE S&P AND NUMBER ONE GAINER IN THE NASDAQ 100. WE ARE TALKING ABOUT MOMENTUM HOLDINGS. THIS ONE FINISHING THE DAY WITH A GAIN OF 5%. YOU MIGHT REMEMBER IN EARLY MAY AND KIND OF GOT I NEVER RADAR WHEN IT WAS ANNOUNCED IT WOULD BE INCLUDED IN THE NASDAQ 100. IT IS A TECHNOLOGIES MAKERS ARE DEFINITELY AN AI PLAY. BARCLAYS UPGRADING THE MAKER OF SUCH TO OVERWEIGHT FROM EQUAL WEIGHT. STOCK IS UP 100% YEAR-TO-DATE. DESPITE THAT, BARCLAYS ANALYST SAYS A RECENT PULLBACK MAKING IT A GOOD BUT. THEY HAVE A PRICE -- A GOOD BUY. THEY HAVE A $1000 PRICE TARGET ON THIS. SOME UPWARD MOMENTUM CERTAINLY IN THAT ONE. LET'S GO TO TERADYNE. THIS ONE A TOP GAINER IN THE S&P 500 AND THE NASDAQ 100 AS WELL, UP 3.5%, AT ITS INTRADAY HIGH, ALMOST A 9% MOVE HIGHER, BUT FINISHING 4% UP. UBS RAISING, MAINTAINING A BUY RATING. 333.76 A SHARE. AND THEN, DID ANYBODY GO TO THE MOVIES THIS WEEKEND? KATIE: NOT ME. I WOULD LIKE TO NEXT WEEKEND. CAROL: WE HAVE TO DO IT BEFORE THE BABY COMES. KATIE: THAT IS TRUE. TIM:TIM: YOU SHOULD BRING THE BABY. KATIE: HEADPHONES. CAROL: THERE WAS A BIG MOVIE OUT AS WE KNOW. WE ARE TALKING BUT "ODYSSEY." AND WE DID SEE MOVIE THEATER IS MOVING TODAY. SOME OF IT HAD TO DO WITH THE AMC ENTERTAINMENT. THEY CAME OUT AND REPORTED STRONG ADJUSTED EBITDA FOR THE SECOND QUARTER THAT BEAT ANALYST ESTIMATES. UP 26% YEAR TO DATE, BUT WE SAW SOME PEERS LIKE CINEMARK ALSO HIGHER, UP ABOUT 5%. I THINK IT WAS PROBABLY MORE ON THE EARNINGS. IMAX, WHICH I KNOW YOU GUYS WILL BE TALKING TO THE CEO. KATIE: IN JUST A FEW MINUTES. CAROL: A LITTLE LATER ON. THAT STOCK HAD A TOUGHER TIME TODAY. CURIOUS WHAT HE HAS TO SAY. KATIE: THANKS FOR THE PROMO. I LIKE THIS. CAROL: WE ARE JUST ONE BIG FAMILY. KATIE: THAT IS TRUE. TIM: I DON'T KNOW. CAROL: YOU DON'T KNOW IF WE ARE ONE BIG FAMILY? TIM: I DID NOT SEE THE "ODYSSEY," BUT I KNOW HOW IT ENDS. KATIE: NO SPOILERS. TIM: I WILL NOT GIVE ANYTHING AWAY, BUT LET'S JUST SAY THE STORY HAS BEEN AROUND FOR QUITE SOME TIME. LET'S START WITH THE MEDIA STOCKS. WARNER BROS. DISCOVERY AND PARAMOUNT SKYDANCE FELL TODAY AFTER A FEDERAL JUDGE PAUSED THE TAKEOVER, SAYING IT LIKELY VIOLATES ANTITRUST LAW. ONE ABOUT THIS DISCOVERY FELL BY 3.8%. PARAMOUNT SKYDANCE BY OVER 2%. THE JUDGE ORDERED THE COMPANIES HOLD OFF ON CONSUMMATING THE DEAL FOR 14 DAYS, SCHEDULED IN AUGUST 3 HEARING ON WHETHER TO EXTEND THE HOLD FOR LONGER. REMINDER THAT CALIFORNIA AND SEVEN OTHER STATES SUED TO BLOCK THE MERGER, ALLEGING IT WOULD HARM COMPETITION FOR FILM AND CABLE TV DISTRIBUTION. ALL RIGHT, SO PARAMOUNT SKYDANCE AND WARNER BROS. DISCOVERY LOWER, CLOSING AT THE LOWEST LEVEL GOING BACK TO DECEMBER 4. LET'S GO TO ANOTHER MEDIA STOCK FORGET SHARES OF NETFLIX FELL TODAY, DOWN BY 2%. THIS WAS ACTUALLY BEFORE ALL THE WARNER BROS. DISCOVERY PARAMOUNT SKYDANCE STUFF CROSSED. ANALYSTS CUTTING SINCE THE EARNINGS LAST THURSDAY. SHARES OF NETFLIX DOWN BY 50% FROM THOSE JUNE HIGHS OF 2025. SINCE THE LATEST REPORT LAST WEEK, 27 ANALYSTS CUT PRICE TARGETS BY AN AVERAGE OF 19%. FRIDAY, SHARES FELL BY 7% AFTER THE COMPANY FORECASTED A SECOND CONSECUTIVE QUARTER OF SLOWING SALES GROWTH THAT CONVINCED -- THAT LED TO THE GROWTH. SWEET GREEN TODAY FELL BY MORE THAN 6%. THEY WERE DOWN AS MUCH AS 9% EARLIER IN THE SESSION. THE SLIDE SAW THE STOCK DOWN LAST MONDAY THROUGH THURSDAY 15%. IT WAS A CONCERN OVER THE OUTBREAK OF THE DIARRHEA CAUSING PARASITE LINKED TO FRESH PRODUCE. THE CONCERN IS THAT CONSUMERS WOULD AVOID THE SALAD CHAIN. SWEET GREEN SHARES FELL 26% IN THAT FOUR-DAY PERIOD BECAUSE I INCLUDED FRIDAY IN THERE. THEN THEY ROSE ON FRIDAY 14% BECAUSE OF WHERE IT WAS LINKED. NOW THERE ARE QUESTIONS OF WHAT IT IS LINKED TO. KATIE: RIGHT. TIM: SO WHO KNOWS? ONE ANALYST AT CITI SAYS IT WILL FACE INCOMING OUTSOURCING AND PREP COST AND CONSUMERS WILL AVOID THE FOOD. KATIE: YOU ALSO SAW CHIPOTLE SHARES DOWN TODAY. EVEN IF IT IS NOT LINKED TO SOME OF THE SPECIFIC LETTUCE AT SOME OF THESE CHAINS, THE GUILTY BY ASSOCIATION I THINK IS SENDING SHARES LOWER. LET'S TALK ABOUT THE BOND MARKET BECAUSE THERE ARE NO DIARRHEA CAUSING PARASITES THERE. JUST A SELLOFF. WE DON'T OIL PRICES WERE HIGHER ON THE DAY. THAT LED TO YIELDS BEING BOOSTED ACROSS THE CURVE BY ABOUT THREE TO FOUR BASIS POINTS HERE. THE 10-YEAR TREASURY YIELD TRADING BELOW 460. CAROL: WHO WATCHED THE WORLD CUP FINAL? SHOW OF HANDS, EVERYBODY. COME ON. TIM: I WAS DRIVING. CAROL: DID YOU LISTEN? TIM: I LISTENED TO THE WHOLE THING. MY SON WATCHED THE WHOLE THING ON MY PHONE IN THE BACKSEAT. I DON'T KNOW WHAT DAD THAT MAKES ME. CAROL: GOOD DAD. KATIE: HE WAS NOT DRIVING THE CAR SO IT IS FINE HE WAS USING THE PHONE. CAROL: WELL, THERE IS AN ESTIMATE OUT THERE BY IN DTV SAYING THAT FIFA WORLD CUP MAY HAVE COST THE U.S. ECONOMY 11.7 BILLION DOLLARS IN TERMS OF LOST PRODUCTIVITY. GLOBALLY, THE TOURNAMENT MAY HAVE LED TO A LOSS OF $17 BILLION OF PRODUCTIVITY. TIM: THINK ABOUT IT GLOBALLY. 1.7 BILLION PEOPLE AROUND THE WORLD TUNED IN. HERE IN THE U.S., IT WAS NICE. WE FINALLY GET TO HOST IT AND HAVE IT ON OUR TIME ZONE. PEOPLE ALL OVER THE WORLD SAYING UP IN THE MIDDLE OF THE NIGHT TO WATCH THIS THING ON A SUNDAY OR GETTING UP REALLY EARLY MONDAY MORNING. THEY WILL NOT BE SO PRODUCTIVE AT WORK AFTER THAT. SALLY: YOU KNOW WHAT I WAS THINKING? THE U.K. IS OUT OF THE WORLD CUP, BUT WE HAVE A NEW PRIME MINISTER IN. I DID NOT WATCH THE FINAL, BUT I DID SEE THE ENGLAND-FRANCE GAME. WHY ALL WAS JUST FOR THIRD PLACE, IT WAS A PHENOMENAL GAME WITH A DISCUSSION AROUND THAT TIME THAT IF EARLIER, ENGLAND WOULD HAVE BROUGHT THE PACE AND SPIRIT TO THE ARGENTINA GAME, THEY WOULD HAVE BEEN A BIT BETTER. IT SHOWS THE DIFFERENCE PRESSURE CAN MAKE, WHICH FEELS LIKE A FINANCIAL MARKET ANALOGY THERE SOMEWHERE. CAROL: THERE YOU GO. KATIE: THERE WERE GOALS SCORED IN THE THIRD-PLACE GAME. I KNOW NOTHING ABOUT SOCCER BUT THE SCORE WAS HIGHER THAN USUAL. TIM: IN THE THIRD-PLACE GAME, THERE WERE GOALS. THE SATURDAY GAME. 6-4 WAS THE FINAL. KATIE: THAT IS SO MANY. CAROL: YESTERDAY'S WENT REALLY SLOW. KATIE: I WAS ALSO DRIVING SO I MISSED IT. TIM: IT WAS IN NEW JERSEY, WHERE BOTH OF YOU RESIDE. KATIE: PRETTY MUCH. WENT TO THE HOME DEPOT IN JERSEY CITY. DID NOT SEE YOU THERE. CAROL: ME? THAT WOULD HAVE BEEN SO FUNNY. NEXT TIME, JUST CALL ME. KATIE, CALL ME. DEL. -- DEAL. THAT IS A WRAP. SALLY AND PETER TO CONTINUE ON "THE CLOSE" ON TELEVISION. -- SALLY AND KATIE CONTINUE ON "THE CLOSE" ON TELEVISION WITH THE CEO OF IMAX. WE ARE BACK HERE ON "BLOOMBERG BUSINESSWEEK DAILY." WE WILL SEE YOU SAME TIME, SAME PLACE TOMORROW. KATIE: COMING UP, CHRISTOPHER NOLAN'S THE ODYSSEY POSTING AN EPIC DEBUT. IMAX CEO RICHARD GELFOND HERE TO DISCUSS THE FILM'S BLOCKBUSTER PERFORMANCE NEXT. THIS IS "THE CLOSE" ON BLOOMBERG. ♪ >> 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 TO "THE CLOSE." SALLY: LET'S TAKE A LOOK AT WHERE MARKETS CLOSED OUT TODAY. THE S&P 500 CLOSED DOWN JUST A TOUCH. IT WAS INITIALLY HELPED BY A BOUNCE IN CHIPMAKERS AFTER A SLUMP LAST WEEK. THIS LIKELY PROMPTED INVESTORS TO START BUYING THE DEBT. THE NASDAQ CLOSED UP JUST A LITTLE TOUCH TOO. THE SENTIMENT SIMILARLY HELPED AND CLIMBED, ALSO LED BY SEMICONDUCTOR COMPANIES, AFTER IT HAD ITS WORST WEEK IN ALMOST A MONTH. INVESTORS ARE PARTLY BACK INTO THE SEMICONDUCTOR HE WOULD LIKE TO BID YET AND INTEL IN ANTICIPATION OF EARNINGS REPORTS TO SEE IF THE EARNINGS ARE MATCHING THE AI INFRASTRUCTURE INVESTMENTS. AND THEN OF COURSE WE HAD THE PHILADELPHIA SEMICONDUCTOR INDEX WHICH GAINED AFTER FALLING INTO A BEAR MARKET AS INVESTORS BOUGHT BACK INTO THE AI INFRASTRUCTURE TRADE. LASTLY, OIL SWUNG SHARPLY BETWEEN GAINS AND LOSSES TODAY AS TRADERS GRAPPLED WITH A FLURRY OF HEADLINES AROUND THE MIDDLE EAST CONFLICT, INCLUDING TARGETING OF VESSELS ATTEMPTING TO TRANSIT THE STRAIT OF HORMUZ. KATIE: LET'S TAKE A LOOK AT SOME OF THE DAY'S BECAUSE MOVERS ON THE EQUITY SIDE. WE HAVE BEEN TALKING ABOUT IT ALL SHOWED BUT A BIG MOVE, FROM ALPHABET REPORTEDLY DEVELOPING THEIR OWN SERVER CHIPS FOR THEIR GEMINI MODEL. SHARES HIGHER BY 1.5% ON THE DAY. WARNER BROS. DISCOVERY, AS DISCUSSED, THEIR DEAL WITH PARAMOUNT RUNNING INTO SOME SNAGS. HALTED FOR THE TIME BEING. SHARES FINISHING ABOUT 4% LOWER. AND CHIPOTLE, AS WE WERE DISCUSSING WITH EVERY RADIO FRIENDS, THAT PARASITE FEARS CONTINUE TO ECHO THROUGH THE STOCKS. SHARES DOWN 3.8%. LET'S GET TO OUR TOP STORY THIS HOUR. IT IS ONE OF THE YEAR'S MOST ANTICIPATED FILMS, DELIVERING BIG TIME AT THE BOX OFFICE. CHRISTOPHER NOLAN'S "THE ODYSSEY ," THE NUMBER ONE FILM IN THE U.S. AND CANADA IN ITS DEBUT WEEKEND, POSTING $105 MILLION IN TICKET SALES. A LARGE PORTION OF THE WEEKEND'S BOX OFFICE PERFORMANCE GENERATED FROM SCREENINGS IN IMAX'S GIANT AUDITORIUMS, MANY OF WHICH WERE SOLD OUT MONTHS IN ADVANCE. LET'S DISCUSS WITH RICHARD GELFOND. HE IS THE CEO OF IMAX JOINING US ON SET. GREAT TO SEE YOU. RICHARD GELFOND GREAT TO BE HERE. THANK YOU. KATIE: I WANT TO START THEIR. YOU START WITH THE LARGE AUDITORIUMS, THAT IS WHERE PEOPLE WANT TO SEE THE ODYSSEY. IT HAS BEEN HARD TO DO. VIRAL MEDIA POSTS THAT EVEN IF YOU WANT TO SEE A 2:00 A.M. OR 3:00 A.M. SCREENING, IT IS SOLD OUT. YOU CAN'T GET IN. IS THERE A PLAN TO EXPAND THIS TO MORE THEATERS AND AUDITORIUMS AROUND THE WORLD? RICHARD: SO I HAVE IT DIVIDED INTO PIECES. ONE IS THERE IS LOTS OF AVAILABILITY IN IMAX GLOBALLY. WE HAVE ABOUT 2000 SCREENS. A SUBSET OF THAT IS FILM SCREENS. BECAUSE CHRIS NOLAN WAS THE FIRST DIRECTOR EVER FILM AN ENTIRE MOVIE WITH IMAX CAMERAS. SO IF YOU WANT TO SEE IT CAPTURED IN IMAX FILM, PROJECTOR AND-- YOU CAN ONLY DO THAT AT THE FILM THEATERS. IT WAS A RECORD OPENING. WE DID 52 MILLION DOLLARS. IT WAS ALMOST 50% ABOVE "OPPENHEIMER," WHICH WENT ON TO BE A HUGE SUCCESS. THE QUESTION IS ABOUT, THERE ARE LOTS OF IMAX, DIGITAL THEATERS. FILM ONES ARE RARE. THEY ARE LIKE THE ROLLS-ROYCE. THE ECONOMICS AROUND THEM ARE VERY HIGH-END. HE HAVE TO PUT THEM IN A VERY BIG AUDITORIUM WITH A VERY BIG SCREEN. FILM PRINTS ARE $50,000 FOR ONE PRINT AT ONE THEATER SO YOU HAVE TO GET TREMENDOUS AMOUNTS OF CAPACITY. SO FORTUNATELY IN THE PLACES IT IS, IT HAS WORKED REALLY WELL. TCL IN L.A., $500,000 IN ONE DAY IN ONE SCREEN, WHICH IS AN INCREDIBLE NUMBER. AS YOU SAID IN YOUR INTRO, PEOPLE ARE FLYING PLACES. THE ECONOMIC MODEL DOES NOT REALLY WORK TO PUT IMAX FILM ON EVERY CORNER BUT FORTUNATELY THERE ARE A LOT OF DIGITAL THEATERS, SO PEOPLE CAN GO TO THOSE. KATIE: I HEAR WHAT YOU ARE SAYING THERE, BUT KNOWING WHAT YOU KNOW NOW ABOUT WHAT A HIT THIS HAS TURNED OUT TO BE, WHAT DEMAND HAS LOOKED LIKE, WOULD YOU HAVE PLANNED ANYTHING DIFFERENTLY ABOUT THIS ROLLOUT? RICHARD: FOR "OPPENHEIMER," WE ONLY HAD 30 FILM THEATERS AND WE HAVE 40% MORE FOR THIS ONE. WE KNEW IT WAS GOING TO BE BIG PARTLY BECAUSE IT WAS THE FIRST FILM SHOT COMPLETELY WITH IMAX CAMERAS. WE INVENTED A NEW CAMERA TO MAKE THIS FILM PARTLY BECAUSE WE KNOW CHRIS. AND CONQUERING THE STORY LIKE THE ODYSSEY -- "THE ODYSSEY," WE THINK BIG. WE FIND FILM PROJECTORS AND WE HAD A CHOSEN ALMOST EVERY THEATER. IN 42 THEATERS, WE HAD A CHOSE BETWEEN MIDNIGHT AND AND 3:00 A.M.. THE 6:00 A.M.'S FOR SOLD OUT. IN LONDON, BFI, WE SOLD A LARGE NUMBER OF SHOWS IN WEEK SEVEN AND EIGHT. SO WE WERE PREPARED. BUT THERE IS NOT MORE WE COULD HAVE DONE, REALLY. >> IMAX EXPECTS 2026 WILL BE AT ITS BEST YEAR EVER AT THE GLOBAL BOX OFFICE WITH SOME 1.4 BILLION PROJECTED -- $1.4 BILLION PROJECTED. HOW MUCH DO YOU NEED FOR BIG HOLLYWOOD HITS TO CARRY THE LOAD VERSUS LOCAL BLOCKBUSTERS? RICHARD: LAST YEAR WE DID $1.2 BILLION. IN THE HALF OF THE YEAR THIS YEAR WE DID $600 MILLION. FAST-FORWARD TO THE SECOND HALF, YOU HAVE "THE ODYSSEY," ONE OF OUR BIGGEST MOVIES OF ALL TIME. WE HAVE IN SELECT LOCATIONS "SPIDERMAN," "DUNE 3," FILMS WITH IMAX CAMERAS ALSO -- FILMED WITH IMAX CAMERAS ALSO. WE HAVE "AVENGERS" IN CERTAIN TERRITORIES AND A NEW TOM CRUISE MOVIE. THE GOAL IS ATTAINABLE. >> ANOTHER MORE GENERAL QUESTION --IN MAY, THERE WERE REPORTS IMAX WAS EXPERIENCING A SALE AND APPROACH ENTERTAINMENT COMPANIES AS POTENTIAL BUYERS. WHAT WOULD BE THE RATIONALE FOR DOING THAT AND ARE YOU ABLE TO GIVE US UPDATES ON SUCH A PROCESS? RICHARD: WE SAID MANY TIMES, WHEN WE SIGN A CONTRACT, WE WILL LET EVERYBODY KNOW. IT IS OUR POLICY NOT TO COMMENT ON THESE KIND OF RUMORS. WITH ALL THE TURNOVER IN THE MEDIA SPACE AND M&A ACTIVITY, IT'S NOT SURPRISING THAT RUMOR WOULD BE OUT THERE. WE'LL LET YOU KNOW WHAT HAPPENS. RICHARD: SHOULD I PUT YOU ON SPEED DIAL ON MY CELL PHONE? KATIE: THAT WOULD BE GREAT. JUST PUT US ON SPEAKERPHONE IN THE ROOM WHERE IT HAPPENS. GETTING BACK TO THE MOVIE THEATER BIZ, YOU MENTIONED THIS IS "THE ODYSSEY," THE FIRST MOVIE TO BE FILMED WITH IMAX CAMERAS ENTIRELY. OTHER FILMS HAVE PARTLY BEEN FILMED WITH THE CAMERAS. HAVE YOU SEEN MORE DIRECTORS BEING ENCOURAGED TO SHOOT EITHER PRIMARILY OR ENTIRELY WITH IMAX CAMERAS GIVEN THE SUCCESS WE HAVE SEEN WITH CHRISTOPHER NOLAN AND "THE ODYSSEY?" RICHARD: THIS YEAR WE RELEASED A 12 FILMS THAT WERE SHOT WITH IMAX CAMERAS. WHAT MAKES US DIFFERENT IS IT WAS SHOT WITH A NEW FILM CAMERA THAT WE INVENTED WITH THE NO LANS, SPECIFICALLY FOR THIS PROJECT -- NOLANS, SPECIFICALLY FOR THIS PROJECT. THAT TOOK RESOURCES, BOTH CAPITAL AND HUMAN CAPITAL. WE INVENTED SOMETHING CALLED A BLIMP. IMAX CAMERAS ARE NOISY BECAUSE THE FILM SPOOLS ARE HUGE BUT THE BLIMP TAKES AWAY EXTERNAL NOISE SO IT ALLOWS US TO DO CLOSE-UPS WHEN THE ACTORS ARE NOT ACTING IN FRONT OF A REFRIGERATOR SO IT IS VERY QUIET AND IT OPENS UP A WHOLE NEW AVENUE FOR US. BUT DIGITAL CAMERAS WHICH WE HAVE USED FOR A LONG TIME, MANY PICTURES THIS YEAR WERE FILMED WITH DIGITAL CAMERAS. INCLUDING "THE MANDALORIAN," THEY USED DIGITAL CAMERAS, -- "HAIL MARY." WE HAVE DONE THAT FOR YEARS. THIS WILL CREATE MORE DEMAND AS WE LOOK FORWARD TO 2027. THERE WILL PROBABLY BE FIVE OR MORE FILMS RELEASED ON FILM. KATIE: THAT'S A GOOD PLACE TO LEAVE IT. ALWAYS GREAT TO SEE YOU, RICHARD GELFAND, THE CEO OF IMAX. COMING UP, WE WILL SHIFT GEARS BECAUSE WE ARE TRACKING BOEING'S FLIGHT PATH AFTER THE UPBEAT COMMENTARY AT THE FARNBOROUGH AIR SHOW. WE WILL ASSESS THE OUTLOOK, NEXT. THIS IS "THE CLOSE" ON BLOOMBERG. >> TAKE A LOOK AT SHARES OF BOEING. CLOSING LOWER. DOWN ABOUT 2% AFTER THE CHIEF EXECUTIVE OFFICER SAID THE AIRCRAFT MAKER IS CLOSE TO TURNING THE CORNER ON THE PRODUCTION SCHEDULE. THE CEO SAT DOWN WITH GUY JOHNSON AT THE AIR SHOW THE U.K. TO DISCUSS THE COMPANY'S ROADMAP AND MUCH MORE. TAKE A LISTEN. >> WE ARE TURNING THE CORNER. I TELL MY TEAM WE HAVE NOT QUITE FINISHED TURNING THE CORNER. WE HAVE MORE WORK TO DO. I AM PLEASED WITH THE PROGRESS SO FAR. WE ARE RAMPING UP PRODUCTION ACROSS MANY LINES AND MARKETS ARE VERY STRONG. THE BACKLOG IS VERY STRONG. OUR STORY IS FOCUSING ON EXECUTING THAT BACKLOG. REPORTER: THE ADMINISTRATION HAS GIVEN YOU MASSIVE SUPPORT OVER THE LAST 18 MONTHS, THE PRESIDENT CERTAINLY HAD YOUR BACK. DO YOU THINK THE COMPANY WOULD BE WHERE IT IS NOW WITHOUT THAT KIND OF SUPPORT? >> THE EXECUTION FOCUS IS REALLY ON US TO GO IMPROVE OUR OVERALL PERFORMANCE, BUILD TRUST WITH STAKEHOLDERS AND RESTORE TRUST WITH THE REGULATOR. THAT IS MORE WHAT BOEING HAS DONE FOR THEMSELVES. THE PRESIDENT HAS BEEN VERY HELPFUL IN SALES CAMPAIGNS, BALANCING TRADE. THE BEST WAY TO DO THAT IS BUY A BUNCH OF AIRPLANES. HE'S BEEN VERY HELPFUL WITH THE AEROSPACE INDUSTRY. REPORTER: SO WHAT NOW? >> WELL, WE STILL HAVE TO RAMP UP HIGHER SO WE ARE AT 47 A MONTH NOW ON THE 737, WE HAVE ASPIRATIONS TO GET TO 63 A MONTH. 8 A MONTH ON THE 787. WE HAVE TO GO TO 10 LATER IN THE YEAR AND HIGHER NEXT YEAR. WE ARE INVESTING IN NEW CAPACITY AND FACILITIES TO CONTINUE THIS RATE RAMP. THE BACKLOG IS THERE AND THE MARKET IS STRONG. IT'S ABOUT DELIVERING MORE AIRPLANES. REPORTER: YOU LIKE THE ECONOMY RIGHT NOW? THE CONSUMER LOOKS GOOD. PARTICULARLY IN THE STATES. THEY WANT TO FLY BE THE AIRLINES ARE SAYING. GIVE ME A FLAVOR OF WHAT YOU'RE SEEING IN TERMS OF WHAT THE MACRO PICTURE LOOKS LIKE. >> IT'S A SUPER RESILIENT MARKET. REGIONALLY, WE FORECAST MARKET WILL CONTINUE TO BE STRONG. TRAFFIC CONTINUES TO GROW. WE JUST CAME OUT WITH A NEW FORECAST FOR OVERALL AIRCRAFT GROWTH. WE SEE 44,000 AIRPLANES THE NEXT 20 YEARS. THIS ISN'T A MARKET THAT MOVES QUICKLY BECAUSE YOU HAVE TO MAKE ORDERS FOR AIRCRAFT WELL IN ADVANCE AND WE THINK THE DEMAND IS SET FOR OUR AIRCRAFT GOING FORWARD. KATIE: OUR THANKS AGAIN TO THE BOEING CEO AS WELL AS BLOOMBERG'S GUY JOHNSON. REALLY INTERESTING CONVERSATION THERE, AS WE THINK ABOUT HOW WE WRAPPED UP TODAY'S MARKETS, A LOT OF FOCUS ON OIL. A BIG FOCUS FOR THE ENTIRE AIR INDUSTRY. TAKE A LOOK AT THE NYMEX CRUDE TRADING AT ABOUT $83 A BARREL. BRENT, TRADING JUST BELOW $90 A BARREL. WE HAVE A HEADLINE COMING FROM U.S. CENTRAL COMMAND THAT FORCES BEGAN A NEW ROUND OF IRAN STRIKES AT 4:00 P.M. EASTERN. OIL, REALLY CAUGHT IN THE CROSSHAIRS OF WHAT IS GOING ON GEOPOLITICALLY. MAYBE SOME OPTIMISM WE COULD SEE RENEWED PEACE/TRUCE TALKS HERE BUT CERTAINLY THE PRESS CONTINUES TO GO HIGHER. SALLY: IT MUST BE TOUGHER TRADERS OUT THERE , AS IT OSCILLATES BETWEEN GAINS AND LOSSES TODAY, IN THIS LACK OF CLARITY AROUND WHAT THE SITUATION IS REGARDING THE STRAIT OF HORMUZ. I WONDER HOW MUCH OF THE WEEK WILL CONTINUE TO SEEK -- SEE THIS. KATIE: WE WILL TALK FREE FOR UP NEXT -- FIF UP NEXTA -- FIFA UP NEXT. ♪ KATIE: THE FIFA WORLD CUP 2026 OFFICIALLY MAKING ITS MARK AS THE MOST LUCRATIVE SPORTING EVENT IN HISTORY. OUR NEXT GUEST HAS BEEN TRACKING THE SPENDING SURGE, AND WE WILL GET TO THEM IN A LITTLE BIT. LET'S ACTUALLY FIRST PIVOT HERE. BECAUSE OF COURSE OUR NEXT GUEST HAS SPENT YEARS ON THE FIELD. HE IS PERMITTING HIS PROFESSIONAL CAREER TO SPORTS BROADCASTING AND NOW FINDING THE NEXT GENERATION OF AMATEUR PLAYERS. JOINING US LIVE IS JOSIE OUT THE DOOR -- JOSIE ALTIDORE. GREAT TO SEE YOU IN PERSON. JOSIE: THANKS FOR HAVING ME. KATIE: SO WE ARE FRESH OFF THE FINAL OF COURSE, AND I AM SURE YOU HAVE NOT HAD ENOUGH TIME TO REFLECT ON THE EXPERIENCE OVERALL, BUT WHEN YOU THINK ABOUT THE PAST FEW WEEKS, THE PAST MONTH OR SO, WOULD YOU CONSIDER THIS WORLD CUP A SUCCESS? JOZY: ABSOLUTELY. BY AND LARGE, WHEN YOU LOOK AT THE METRICS, FAN ENGAGEMENT, VIEWERSHIP, IT IS EASILY ONE OF THE BEST WORLD CUP TO DATE. FOR ME AS A FORMER PLAYER, I WAS REALLY EXCITED TO SEE HOW THE U.S. AND CANADA AND MEXICO WERE ABLE TO ORGANIZE THE EVENT QUITE FLAWLESSLY. OBVIOUSLY, NOTHING IS PERFECT. BUT OVERALL, I THOUGHT IT WAS REALLY GOOD. TO HAVE THE KIND OF CRESCENDO LAST NIGHT IN NEW YORK, IT WAS REALLY SPECIAL, AN ENDING TO A GREAT SUMMER. KATIE: IT WAS IN NEW JERSEY. LET ME SAY THAT. JOZY: TRUE. GUILTY. KATIE: IT IS THE SAME THING TO THE REST OF THE WORLD HERE. WE ALWAYS TALK ABOUT THE HALO EFFECT THAT POTENTIALLY THE WORLD CUP HAS ON SOCCER. WHEN YOU THINK OF THE UST MOVING THROUGH THE ROUNDS AND THE WORLD CUP BEING HELD IN NORTH AMERICA, WHAT DO YOU THINK THAT SUCCESS LOOKS LIKE FOR MLS NOW THAT SADLY THE WORLD CUP IS OVER? JOZY: YEAH, I THINK THE BIGGEST THING TO FOCUS ON IS THE LAST TIME WE HAD THIS WORLD CUP IN 1994, THERE WAS NO PROFESSIONAL NEED TO FALL BACK ON. SO CONSUMERS, NEW FANS HAD NOWHERE TO GO TO PUT ALL THAT ENERGY. NOW FAST-FORWARD 32 YEARS AND WE HAVE A DOMESTIC LEAGUE THAT LITERALLY KICKS OFF THIS WEEK WITH 15 OF 30 GAMES OVER THE WEEKEND. WE HAVE THE LEAGUES CUP STARTING WHICH IS A COMPETITION BETWEEN MLS AND LEAGUE MX. THERE IS AN OPPORTUNITY FOR FANS TO GO AND CONTINUE THE EXCITEMENT, THE FANDOM, AND HOPEFULLY CONTINUE TO BRING SOCCER TO THE FOREFRONT. SALLY: TO ASK YOU ABOUT THE CONTROVERSIAL HYDRATION BREAKS, WHAT DO YOU THINK OF THEM? ARE THEY HERE TO STAY? FIFA CLAIMS IT IS FOR PLAYER WELFARE IN THE SUMMER HEAT, BUT THERE WERE SOME CRITICISMS AND WAS ABOUT INTRODUCING NEW AD SLOTS. JOZY: I'M NOT GOING TO LIE, I WAS NOT A FAN. I THINK THERE IS OBVIOUSLY TWO SIDES TO THAT. THE FIRST SIDE IS WHEN YOU PLAY IN EXTREME TEMPERATURES, IT IS IN EVERYBODY'S BEST INTEREST TO MAKE SURE YOUR HYDRATED, THE HEALTH AND THE WELLNESS OF THE PLAYERS ARE NUMBER ONE. BUT IN SOME CASES IN THIS TOURNAMENT, WE SOUGHT REALLY NO NEED FOR A BREAK. THE WEATHER WAS FINE. SOME STADIUMS WERE INDOOR. IT TOOK A LITTLE LIFE OUT OF THE GAME. I THINK SOCCER IS STILL A PURIST SPORT SO YOU WANT TO SEE IT PLAYED AS CLOSELY AS POSSIBLE TO AS DESIGNED. DEPENDING ON THE WEATHER, I AM OK WITH IT. BUT FOR THE MOST PART, WE SHOULD PROBABLY KEEP IT OUT OF THE GAME. SALLY: WHEN I WAS GROWING UP, IT WAS ALL ABOUT THE HALFTIME ORIGIN. I DON'T KNOW IF THEY STILL DO THAT. IT WAS -- THE TOURNAMENT WAS CONSIDERED A SUCCESS. HOW DISTRACTING IS IT FOR THE PLAYERS TO HAVE THE POLITICAL INCIDENTS AND DISTRACTIONS WE SAW THIS TIME? FOR EXAMPLE WITH PRESIDENT DONALD TRUMP'S INTERVENTION WITH THE ONE MATCH BAND FOR BALOGUN. JOZY: YEAH, WHAT HAPPENED WITH BALOGUN WAS UNFORTUNATE IN THE SENSE THAT EVERYTHING THAT HAPPENED AROUND IT BECAUSE I THINK IT AFFECTED HOW THE TEAM HAD TO APPROACH THAT GAME. I THINK IT AFFECTED HOW BELGIUM APPROACHED US. IT GIVE THEM EXTRA FIRE. I UNDERSTAND THE INTENTION. I THINK IT WAS NOT A RED CARD BUT THE MANNER IN WHICH THEY ARRIVED AT THAT WAS PRETTY CONTROVERSIAL AND FOR GOOD REASON. THAT PART WAS NOT GREAT. BEYOND THAT, WAS REALLY PROUD OF THE TEAM, PROUD OF HOW THEY COMPETED, HOW THEY REPRESENTED THEMSELVES, SOCCER IN THIS COUNTRY. AND THE VIEWERSHIP TELLS THE STORY ABOUT PEOPLE'S INTRIGUE AND EXCITEMENT IN WHAT THE SPORT IS DOING. KATIE: YEAH, ABSOLUTELY. YOU THINK ABOUT THE NUMBER OF TEAMS, WE HAVE THE MOST EVER THIS YEAR I BELIEVE. DO YOU THINK THE TOURNAMENT SHOULD EXPAND TO 64 TEAMS FROM HERE? JOZY: I THINK IT IS INTERESTING. I THINK IT IS DEFINITELY WORTH EXPLORING. THE DETAILS HERE ARE THE MOST IMPORTANT THING BECAUSE WHAT MADE THIS WORLD CUP SO GOOD IS THE GAMES WERE OF QUALITY. EVERYBODY FELT LIKE THEY WERE REPRESENTING THEIR COUNTRIES, WATCHING THEM BEING REPRESENTED, BUT THE GAMES WERE COMPETITIVE. I THINK THAT IS SOMETHING YOU HAVE TO BE MINDFUL OF AND MAKE SURE THAT IF YOU DO ADD TEAMS, YOU ARE ADDING THEM IN A WAY WHERE COMPETITION STAYS HIGH AND INTRIGUE IS HIGH. THAT IS WHAT YOU HAVE ALWAYS IN A WORLD CUP SO WE HAVE TO BE CAREFUL WITH ADDING MORE TWISTS AND TURNS. KATIE: REALLY COOL TO TALK TO YOU. APPRECIATE YOU STOPPING BY AFTER A VERY BUSY WEEKEND. THAT IS THE FORMER FORWARD FOR THE U.S. MEN'S NATIONAL SOCCER TEAM, NOW SOCCER BROADCASTER. STICKING WITH THE WORLD CUP, NOW WE WILL TALK ABOUT SPENDING BECAUSE OUR NEXT GUEST HAS BEEN TRACKING THE SPENDING SURGE AS AN EXECUTIVE AT VISA, WHICH OF COURSE IS AN OFFICIAL WORLDWIDE FIFA PARTNER. JOINING US LIVE IS THE CHIEF MARKETING OFFICER OVER AT VISA. FRANK, GIVE US THE LAY OF THE LAND HERE. YOU HAVE A PRETTY UNIQUE VIEW INTO WHAT SPENDING LOOKS LIKE AROUND THE WORLD CUP. WHAT ARE SOME OF THE FIGURES THAT STICK OUT TO YOU? FRANK: FIRST OF ALL, GREAT TO BE WITH YOU. THE THINGS THAT STICK OUT FOR ME STARTS WITH CROSS-BORDER TRANSACTIONS. WHAT WE ARE SEEING IN OUR SPENDING DATA IS A 16% YEAR-OVER-YEAR INCREASE DURING THE TOURNAMENT WE ARE SEEING SOME SURPRISES. SAN FRANCISCO, WE HAVE SEEN THE LARGEST OF ALL THE METRO AREAS THAT HOSTED THE GAMES, SAN FRANCISCO HAD THE LARGEST SPENDING GROWTH DURING THE TOURNAMENT, UP 15%. WE SAW THAT VISITORS FROM THE UNITED KINGDOM DELIVERED THE BIGGEST JUMP. SOME SAY IT IS THE SCOTS WHEN THEY WENT TO BOSTON. I THINK IT IS MORE THAN THAT. A 50% INCREASE YEAR-OVER-YEAR. IN TERMS OF CATEGORIES, WE ARE SEEING SOME SURPRISES. ENTERTAINMENT IS UP. NOT NECESSARILY THE BIGGEST SURPRISE, BUT ENTERTAINMENT IS UP 17%. THAT IS THE HIGHEST GROWTH SPENDING CATEGORY DURING THE TOURNAMENT. THE WAY WE LOOK AT IT, THIS 39 DAY EXPERIENCE WE ARE CALLING THE WORLD CUP IS MUCH LIKE A POP-UP ECONOMY WHERE WE ARE SEEING SMALL BUSINESSES GROW ACROSS RESTAURANTS AND ENTERTAINMENT. KATIE: YEAH. I REALLY LIKE THAT FRAMING, A POP-UP ECONOMY IF YOU WILL. YOU MENTIONED THE UNITED KINGDOM VISITORS COMING FROM THERE WHEN IT COMES TO THE BIGGEST SPENDING JUMP. I WANT TO TALK A LITTLE BIT ABOUT NORWAY BECAUSE I AM LOOKING THROUGH YOUR STATS AND IT LOOKS LIKE NORWAY WENT ABSOLUTELY CRAZY WHEN YOU LOOK AT THE TRANSACTION VOLUMES. WHAT IS GOING ON? FRANK: WHAT IS FASCINATING TO ME, THIS IS ONE OF THE THINGS I LOVED ABOUT THIS PARTICULAR TOURNAMENT. THERE ARE THESE GREAT STORIES THAT CAME OUT. NEW HEROES. THE ROWING EFFECT FROM NORWAY AND HAALAND GOT AMPLIFIED ON SOCIAL MEDIA. WE SAW DURING THE MATCHES A TRANSACTION VOLUME INCREASE IN NORWAY OF 172%. IN NORWAY, 172%. BUT IT WAS NOT JUST NORWAY. THEY CAPTURED THE IMAGINATION ACROSS MANY COUNTRIES, 60 COUNTRIES WORLDWIDE. WE SAW SUBSTANTIAL INCREASES IN SPENDING WHEN NORWAY WAS PLAYING. I THINK FOR ME WHAT WAS FASCINATING ABOUT THIS PARTICULAR WORLD CUP IS THAT IT WAS NOT JUST ABOUT THE LIVE BROADCASTS. WHEN YOU LOOK AT WHAT HAPPENED OUTSIDE THE BROADCASTS, THAT IS WHEN THE FANDOM REALLY KICKED IN. WHETHER IT WAS THE TIKTOK HIGHLIGHTS OR CREATOR REACTIONS OR COMMUNITIES SHARING INFORMATION, THAT IS WHERE IT GOT REALLY INTERESTING. THAT IS WHERE NEW HEROES STARTED TO POP UP. WHETHER IT IS THE GOALIE FOR CAPE VERDE EIGHT OR -- VERDE OR HAALAND FROM NORWAY. SALLY: DATA SHOWS HOW CONSUMERS ARE PRIORITIZING THINGS LIKE TRAVEL SPENDING AND ENGAGEMENT. WHAT ARE YOUR BIG TAKEAWAYS IN TERMS OF WHAT FANS ARE PRIORITIZING WHEN IT COMES TO EXPERIENCES, ESPECIALLY IN THIS ECONOMY WHICH DOES HAVE A NUMBER OF PRESSURES ON AT RIGHT NOW IN TERMS OF INFLATION AND INTEREST RATES REMAINING SOMEWHAT HIGH? FRANK: YOU KNOW, ALL BETS SEEM TO BE OFF WHEN IT COMES TO THE WORLD CUP. PEOPLE WILL SPEND WHAT IT TAKES TO GET TO THE GAME BOARD TO GET TO A WATCH PARTY OR TO JOIN FAMILY. WHAT WE HAVE SEEN IS THOSE WHO DECIDE TO TRAVEL AND BE PHYSICALLY LOCATED, THEY WANT TO EXPERIENCE A HOST COUNTRY. WHETHER THAT IS GOING TO A WAFFLE HOUSE OR PICKING UP RANCH DRESSING, THEY WANT TO EXPERIENCE THE HOST COUNTRY. THE HEART OF EACH HOST COUNTRY AND HOST CITY WILL BE THE SMALL BUSINESSES. WE SAW SUBSTANTIAL INCREASES IN LOCAL RESTAURANTS. WE SAW SUBSTANTIAL INCREASES IN LOCAL VENDORS. THAT IS WHAT WE ARE SEEING AS THE BIG SHIFT. EXPERIENCES OVER THINGS. THOSE EXPERIENCES ARE EXPRESSED TO THE LOCAL COMMUNITIES. SALLY: GOT IT. THE RANCH DRESSING WAS A TOPIC OF HUGE DISCUSSION AROUND HERE. FIFA OF COURSE ALSO TALKED ABOUT HOW IT HELPS FANS CONNECT WITH THE WORLD CUP. SO TALK US THROUGH YOUR STRATEGY THERE. FRANK: I THINK ONE OF THE BIGGEST SHIPS WE HAVE SEEN IN THE PAST 10 YEARS -- SHIFTS WE HAVE SEEN IN THE PAST 10 YEARS OR SO IN FANDOM OVERALL AS IT IS NOT JUST ABOUT CAPTURING THE ATTENTION OF THE FAN DURING THE LIVE BROADCAST. AS I MENTIONED EARLIER, MUCH OF THE INTERESTS AMONG FANS HAPPEN OUTSIDE OF THE LIVE BROADCAST. WE ARE TRYING TO BUILD COMMUNITY. WE ARE BUILDING A COMMUNITY AROUND THIS IDEA OF TAPPING IN, GIVING PEOPLE ACCESS AND PARTICIPATION. SO WE CREATED THIS CAMPAIGN CALLED THE TAP IN CAMPAIGN. IT IS A PLAY ON WORDS. YOU HAVE THE TAP IN GOAL WHICH SEEMS LIKE AN EASY GOAL WITH NO FRICTION, ETC., BUT GIVING PEOPLE ACCESS TO WHAT MATTERS TO THEM. WITH JASON AND YAMAL AND CAMPOS AND HAALAND, THE CORE IDEA IS YOU CAN TAP INTO TICKETS. PLUS, YOU CAN TAP INTO VIP ACCESS. YOU CAN TAP INTO TRAVEL. WE GAVE AWAY SPECIAL JACKETS, SIGNED MEMORABILIA. AND FOR US, IT WAS LESS ABOUT JUST THE COLLECTION OF REWARDS. IT IS THE THINGS THAT PEOPLE TOLD US THEY REALLY WANTED, NUMBER ONE. BUT ALSO, NUMBER TWO, BUILDING THIS COMMUNITY AND EXTENDING THIS COMMUNITY AROUND IT AND DEPLOYING THE DATA AROUND IT SO WHEN THIS IS ALL OVER, WE ARE BECOMING A CRITICAL PART OF THE COMMUNITY, OF THE FAN BASE. KATIE: THAT IS WHERE I WANTED TO GO. NOW THAT WE HAVE CLOSED THE BOOKS ON THE WORLD CUP 2026, WE HAVE FOUR LONG YEARS TO WAIT, HOW DO YOU USE AND TAKE WHAT YOU HAVE LEARNED AND SORT OF KEEP THE MOMENTUM GOING OVER AT VISA? FRANK: SO THE WAY WE LOOK AT IT IS WE HAVE FIFA WOMEN'S WORLD CUP COMING INTO NEXT YEAR IN BRAZIL. I MENTIONED JASON EARLIER. HE PLACED TED LASSO ON TV. THE NEXT SEASON OF TED LASSO WILL FOCUS ON WOMEN'S FOOTBALL. WE ARE FORTUNATE TO TAP INTO THAT. WE THINK WE CAN HAVE SOME CONTINUITY FROM THE MEN'S WORLD CUP IN NORTH AMERICA TO THE WOMEN'S WORLD CUP IN BRAZIL. BUT EVEN WHEN WE GO TO L.A. 2028, WE ARE SPONSORS OF THE OLYMPICS. THIS IDEA OF FANS WANTING TO BE CONNECTED TO PLAYERS, WANTING TO BE CONNECTED TO CREATORS, WE THINK WE CAN EXTEND THAT ACROSS THESE PLATFORMS SO AGAIN WE ARE NOT RENTING ATTENTION IN A CASE-BY-CASE BASIS. WE ARE ACTUALLY BUILDING VISA WITHIN THOSE INDIVIDUAL COMMUNITIES AND CARRYING THEM ACROSS THESE PLATFORMS. KATIE: REALLY APPRECIATE YOUR TIME. THAT IS FRANK COOPER, CHIEF MARKETING OFFICER OVER AT VISA. COMING UP, A SLEW OF BIG TECH REPORTS ON DECK. ERICA IS THE MANAGING DIRECTOR OF RED POINT VENTURES. SHE JOINS US NEXT. THIS IS "THE CLOSE" ON BLOOMBERG. ♪ KATIE: WE HAVE A BIG WEEK AHEAD FOR TECH RESULTS. ALPHABET, TESLA, IBM AND INTEL, ALL ON THE DOCKET. LET'S BREAK IT DOWN WITH THE MANAGING DIRECTOR OF BROADPOINT VENTURES. SHE JOINS US NOW. YOU THINK OF WHAT WE WILL HEAR FROM THE CHIPMAKERS, HYPERSCALERS, THAT'S AN INTERESTING MOMENT FOR MARKETS AND THE TECH TRADE. THERE'S A LOT OF NERVOUSNESS AND VOLATILITY PRICED IN OVER THE PAST FEW WEEKS. WHEN WE START TO HEAR FROM MY COMPANY IS DOING THE HEAVIEST SPEND IN CAPEX, DO YOU THINK THAT HAS THE POTENTIAL TO PUT JITTERS TO BED FOR NOW? >> I SURE HOPE SO. PEOPLE ARE STILL REFLECTING ON THE INFRASTRUCTURE BUILD OUT DURING THE DAYS OF THE INTERNET, AND THERE ARE CONCERNS ABOUT OVERBUILDING. THOSE CONCERNS ARE UNWARRANTED IF YOU LOOK ACROSS THE BOARD, THE INFERENCE PROVIDERS ARE ALWAYS LOOKING FOR AND RUNNING OUT OF GP USE. AS MUCH SUPPLY AS WE CAN BRING ONLINE. PEOPLE ARE ABSOLUTELY GOBBLING IT UP. WE ALWAYS WANT TO LEARN FROM THE PAST. THERE IS NO EVIDENCE THAT PARTICULAR STORY WILL REPEAT ITSELF. WITH ALL THE ADVANCEMENTS IN A.I. KATIE: WE WERE HAVING A CONVERSATION AT THE START OF OUR SHOW WITH MATT RAO OF MAN GROUP AND HE MADE THE POINT THAT THE A.I. WE ARE USING TODAY WILL BE THE WORST A.I. WE USE IN OUR LIFETIMES BECAUSE YOU THINK ABOUT HOW PROGRESS MARCHES ON AND ACCELERATES -- FROM THAT PERSPECTIVE, YOU THINK ABOUT ALL THE MONEY BEING FUNNELED INTO IT, IS IT POSSIBLE WE ARE SEEING SOME SORT OF OVERBUILD AT SOME POINT IN THE SUPPLY CHAIN? ERICA: YOU COULD ALWAYS LOOK AT A PARTICULAR POINT IN TIME AND ONE PIECE OF THE PUZZLE GETS AHEAD OF OTHERS. BUT I DON'T THINK THERE'S A HUGE MACRO ISSUE FROM WHAT WE'VE SEEN. WE ARE STILL IN THE VERY EARLY INNINGS OF A.I. IN UNDERSTANDING HOW TO USE IT AND REALLY PUT IT TO WORK AND SQUEEZE THE VALUE OUT OF IT IN THE ENTERPRISE. THE FIRST STEP WAS BUILDING MODELS THAT ARE FUNCTIONAL. NOW THERE'S WORK GOING INTO INFERENCE AND HOW WE DELIVER MODELS AS EFFICIENTLY AS POSSIBLE AND HOW DO WE REQUEST THE RIGHT MODELS SO WE ARE NOT USING A FERRARI FOR SOMETHING THAT I JOE YOU COULD DO. THERE'S ALL THIS WORK THAT NEEDS TO HAPPEN TO PUT A.I. INTO PRODUCTION IN THE ENTERPRISE AND AS THAT CONTINUES TO PROGRESS, I THINK WE WILL SEE MORE AND MORE DEMAND. AND IT WILL GET MORE EFFICIENT TO DO THE WORK BUT THERE WILL BE MORE APPLICATIONS AND MORE USE CASES FOR A.I. WE WILL CONTINUE TO GOBBLE UP ALL THE SUPPLY THAT IS COMING ONLINE. AND IT'S IMPORTANT TO NOTE MOST INFERENCE PROVIDERS ARE BOOKING OUT YEARS IN IN ADVANCE. YOU HAVE TO BOOK GPU CAPACITY INTO 2028 RIGHT NOW. WE ARE STILL TRYING TO PLAY CATCH UP AS OPPOSED TO BEING IN AN OVERBUILD SITUATION. SALLY: WHAT IS YOUR PREDICTION? ARE YOU EXPECTING ALPHABET WILL SIGNAL MORE INVESTMENT IN A.I.? ARE YOU EXPECTING TO SEE REVENUE ACCELERATE? WHAT DO YOU THINK THE MARKET WILL TAKE AWAY FROM THAT IF WE SEE ALPHABET, PER SE? ERICA: I DON'T KNOW WHAT WILL HAPPEN WITH ALPHABET. I THINK THAT'S THE CASE BECAUSE IT WILL HAVE A POSITIVE IMPACT ON THE MARKETS MORE BROADLY. PEOPLE WILL BE LOOKING FOR HOW THE INFRASTRUCTURE GOOGLE HAS IS CONVERTING INTO REVENUE AND HOW THEY ARE SEEING USAGE INCREASE. THERE'S AN IMPATIENCE FOR ACTUALLY DERIVING REVENUE AND GROWING BUSINESSES AROUND THIS CAPEX SPEND SO PEOPLE WILL BE KEEPING AN EAGLE EYE ON THOSE NUMBERS. THEY WILL BE TRYING TO TEASE APART A LOT OF EPS DID TO THE HOLDINGS GOOGLE HAS IN COMPANIES LIKE STARLINK AND ANTHROPIC OF COURSE. AND THERE'S A LOT MORE ATTENTION GOING INTO NOT JUST EPS BUT WHERE IS THE GROWTH COMING FROM AND WHAT IS MOVING THE NEEDLE? IF THERE IS NO STRONG AI CONSUMPTION STORY THERE, WE WILL SEE INVESTORS SOUR ON THE STOCK. SALLY: WHEN IT COMES TO INTEL, ONE OF THE MOST CLOSELY WATCHED A.I. INFRASTRUCTURE STORIES AFTER ITS RALLY, WHAT ARE THE KEY LINE ITEMS YOU ARE GOING TO BE FOCUSING ON? ERICA: PEOPLE ARE STILL IN THIS PERIOD OF TRYING TO REBUILD TRUST, SO THEY WILL BE LOOKING AT THE PERFORMANCE OF THESE NEW CHIPS THEY ARE BRINGING ONLINE AND TRYING TO UNDERSTAND IF THEY ARE MAKING THE MONTH OVER MONTH PROGRESS IN EFFICACY THAT THEY ARE LOOKING FOR ACROSS THE CHIPS. KATIE: IF YOU THINK ABOUT INTEL AND THE UNIQUE STORY IS HAD WHEN IT COMES TO THE A.I. TURNAROUND AND INVOLVEMENT OF THE U.S. GOVERNMENT, ETC., WHEN WE GET THE RESULTS, IS THERE ANYTHING WE CAN EXTRAPOLATE TO THE REST OF THE CHIP MAKERS OR DOES INTEL HAVE AN IDIOSYNCRATIC STORY? ERICA: I DO THINK THEY HAVE AN IDIOSYNCRATIC STORY. THE MARKETS ARE LOOKING FOR OTHER STRONG U.S. PLAYERS IN THE CHIP SPACE. ITEL HAD A LOT OF TRUST TO BE REBUILT OVER A PERIOD OF UNDERPERFORMANCE AND NOT MEETING COMMITMENTS AND EXPECTATIONS AND THEY SEEM TO BE MAKING VERY FANTASTIC PROGRESS WHICH IS WHAT HAS DELIVERED THE STOCK PERFORMANCE TO DATE. THAT WILL NEED TO CONTINUE. IF THERE IS SLIGHTEST AMOUNT OF FALTERING, WE WILL SEE A BIG SLIP BACK IN THE STOCK. KATIE: ABSOLUTELY. INTEL SHARES ARE HIGHER BY 163% ON A TOTAL RETURN BASIS YEAR TO DATE. CERTAINLY THE STAKES ARE HIGH. GREAT TO PREVIEW THE ACTION WITH YOU, ERICA B., MANAGING DIRECTOR OVER AT RED POINT VENTURES. THIS IS "THE CLOSE" ON BLOOMBERG. KATIE: LET'S TAKE A QUICK LOOK AT HOW MARKETS CLOSED ON THIS MONDAY. A TOUGH START TO THE WEEK. THE S&P 500 DONE ABOUT .2%. BIG TECH, HOLDING IN THERE. THE NASDAQ 100, PRETTY MUCH UNCHANGED. WE CONTINUE TO SEE ENERGY PRICES BOUNCE AROUND. BRENT HIGHER BY 1%. LET'S GO BACK TO TECH. WE WERE LOOKING AT THIS CHART AT THE BEGINNING OF THE SHOW. WHEN YOU THINK ABOUT THE FREE CASH FLOW HANDOFF BETWEEN SEMI CONDUCTORS AND HYPERSCALERS, IT IS REALLY SORT OF THE QUESTION MARK HEADING INTO THE EARNINGS SEASON. SALLY: THAT IS RIGHT. CHIP MAKERS HAVE BEEN THE FOCUS OF ALL OF THE MAJOR SORT OF PARTICULAR EARNINGS DISCUSSIONS OVER THE PAST COUPLE OF WEEKS. AND SO, IT WILL BE INTERESTING TO SEE HOW THAT DEBATE ABOUT WHETHER IT BE CAPEX IS GOING TO BE JUSTIFIED AND MATERIALIZE THIS WEEK. KATIE: ABSOLUTELY, THAT'S BEEN THE QUESTION AND WILL CONTINUE TO BE THE QUESTION. WE ARE GOING TO CONTINUE TO ASK IT AND HOPEFULLY ANSWER IT. THAT DOES IT FOR US. "BALANCE OF POWER" IS UP NEXT. HAVE A GREAT EVENING. THIS IS BLOOMBERG. ♪