SpaceX IPO Debuts; US-Iran Deal Nears

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2:02After threatening new attacks on Iran, President Trump now says he's close to a deal to end the war. We just made a great settlement of the war with Iran. And we're going to be subject to finalization of documents. We should get done over the next few days. President Trump made that announcement in an Oval Office event. But just this morning, Iran's semi-official news agency mayor says the U.S. and Iran are negotiating a potential agreement. We get details from Bloomberg Middle East correspondent Abir Abu Omar in Dubai. It's still unclear to us if that MOU that Iran or the Iranian media is reporting about is one that matches what President Trump had suggested.

2:44And look, some of the most important provisions there include what Iran says, a permanent and immediate cessation of hostilities on all fronts, including in Lebanon. And Lebanon is a sticking point for Iran. Full lifting of the naval blockade in the Strait of Hormuz within 30 days, a commitment by the U.S. to withdraw its forces, reopening of the Strait of Hormuz, suspension of sanctions on oil sales, and a lifting of the blocked$24 billion of frozen assets by the United States. Those are Iranian frozen assets and an affirmation of Iran's commitment not to develop nuclear weapons. Bloomberg Zabir Abu Omar reports Iran says final negotiations won't begin until half of its frozen assets are released.

3:31Oil sanctions are suspended and the naval blockade is lifted. And Nathan, we now move to the biggest initial public offering of all time. SpaceX has raised$75 billion in the IPO, pricing more than 555 million shares at$135 apiece. At the IPO price, Elon Musk's rocket, satellite and AI company has a market value of about$1.8 trillion. Alexis Ohanian is the founder of Reddit. This feels like a milestone moment. This was an investment thesis that was unthinkable a decade ago for most investors. And I think now people are coming to grips with the fact that space technology is really here. What would have been science fiction to us maybe 10 years ago is now science fact.

4:13Reddit founder Alex Ohanian there. The company will debut on NASDAQ under the symbol SPCX. And, Alexis, the IPO has drawn demand for more than four times available shares. Elon Musk's fan base in the retail trading community has placed more than$100 billion in orders for the stock. Musk will control 84 % of the voting power after the IPO. Neil Minow is vice chairman at Value Edge Advisors. Elon Musk has appointed himself CEO for life. He has all the voting control. He has basically built a moat with alligators around himself. And that's not good for shareholders. That's Value Edge Advisors vice chair, Nell Minow.

4:50Now, SpaceX's governance policies ensure Musk is effectively able to choose board members. And that would mean only he could remove himself as CEO. And Nathan, Musk's personal wealth will soar to new heights after this SpaceX IPO. Belaz Penns is deputy managing editor for Bloomberg. There is a really, really real chance that he will be the first trillionaire in the world in the not-too-distant future, depending on how the stock does on the market. One of the positives of this IPO was the sort of intertwined, interconnected nature of Elon Musk's empire, where you think about X, Tesla, SpaceX, boring company.

5:28All these companies have cross-ownerships. They do business with each other. There's a very kind of convoluted structure. For some people, that's a huge plus because Elon Musk sits at the center of everything, and they believe in Elon Musk. They believe in his vision and they believe that he can drive more value out of these companies. As Bloomberg's deputy managing editor, Belaz Penns, he says shadow markets are pricing a SpaceX stock debut with a potential pop of at least 35 percent. Turning to Washington now and President Trump is nominating Jay Clayton to be the next director of national intelligence.

6:04Bloomberg's Amy Morris reports from the nation's capital. Jay Clayton has been serving as the top federal prosecutor in Manhattan and was chairman of the Securities and Exchange Commission during Trump's first term. The cabinet position oversees and coordinates 18 U.S. intelligence agencies. President Trump. Jay Clayton's an incredible talent, the head of Sullivan and Cromwell. He was head of the SEC. He's now Southern District. I mean, nobody has better credentials. But Bill will run it for sure. Well, he's done a fantastic job. Trump's nomination of Clayton comes hours after the House failed to pass an extension of the Foreign Intelligence Surveillance Act, part of pushback over Trump's selection of Bill Pulte to serve as acting director of national intelligence.

6:47In Washington, Amy Morris, Bloomberg Radio. All right, thanks, Amy. And back here in New York, there is still a buzz in the air over the dramatic and historic comeback win by the Knicks. And now fans are possibly just one day away from something they haven't experienced in more than half a century. Bloomberg Sports reporter Randall Williams has more on the Knicks' quest for an NBA championship. The Knicks haven't won a championship since 1973. They haven't even been back to the finals since 1999, where they played the Spurs in that same series. So this series and Game 4 was revenge for not only the Knicks themselves, but for fans.

7:20And you have to think about it. James Dolan, the Knicks owner, was talking a lot of smack before the game even began, saying that he guaranteed a win. I wonder what he was thinking when they were down 29. but evidently one of the most miraculous comebacks that I've ever seen. A truly incredible result. Randall, this was an absolutely epic game and one I'm going to say we're going to be talking about forever. I think that OG Ananubi is absolutely cemented in Knicks history. Just for the last two plays of the game, you have to think about De 'Aaron Fox. This loose ball goes skirting across the floor.

7:53De 'Aaron Fox picks it up. All he has to do is dribble the clock out. He goes up for a layup. It's blocked by OG. The next possession, OG comes down. Jalen Brunson misses a shot. OG tips it in. Those two plays back-to-back, you could argue, are the most clutch plays for the Knicks over the last 50 years. Yeah, OG, an instant legend for the Knicks now. You can hear more of Bloomberg Sports Reporter Randall Williams on the Bloomberg Business of Sports podcast. New episodes drop Fridays at noon. Get it wherever you download podcasts and always at Bloomberg.com. Yeah, one more way we can ride the Knicks euphoria because it is riding high in New York City.

8:29Alexis and Bloomberg's John Tucker joins us with more on that end of the story. John. Good morning, Nathan. So how do you possibly top game four? The greatest comeback in NBA playoff history. How about a game five win? But that's in San Antonio. Anyway, everybody's excited. We don't quit. No. We do not quit. Come on, the Knicks, baby. Knicks in five, baby. And the guy behind the ultimate tip, OG Ananubi. Everyone's pretty excited. I'm excited, too. Trust me, he's excited. And then there's the Knicks swag. Fans have been snapping it up, whether at the NBA store in Midtown or from street vendors with suspect gear.

9:08And this incredible run has been a bonanza for bars. A word to the wise from Noel Donovan at Bloom's Tavern on how to get in on game night. My advice is get to know your local bartenders and be friends with them. Jose Bars is selling blue and orange cookies. Tompkins Square Bagels selling the Brunson Bodega Bagel Sandwich. Tall Poppy in Chelsea has Nick's Cinnamon Rolls. Nick's Fever, catch it. In New York, I'm John Tucker, Bloomberg Radio. I'm going to get me some Nick's Cinnamon Rolls. Those sound good. All right, thanks a lot, John. The Nick's are not the only thing red hot. The heat is on once again up and down the East Coast.

9:43The extreme weather has the Trump administration declaring a power emergency for the Southeast. Duke Energy asked for the emergency order with temperatures set to hit up to 101 degrees in parts of the Carolinas. The order allows power plants to run at maximum output and go past some air pollution limits to meet soaring AC demand. It's in effect through tonight. We'll turn to markets now, Alexis. Futures are moving higher as details emerge about the draft U.S.-Iran deal. Stocks rallied yesterday with all three indexes gaining at least 1.8 percent. And oil continues to drop on optimism. The war is nearing an end.

10:19West Texas Intermediate's down 4.4%, trading shy of$84 a barrel. Brent's well below 90 now at 86.53. That's a drop of 4.25%. And Nathan, shares of Adobe are down more than 4.5 % here in early trading. The software company is looking for new leadership. Adobe says Chief Financial Officer Dan Dern will leave the company next week. That adds further executive turnover at the company after its CEO said in March he would step down once his successor had been appointed.

10:52Time now for a look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael Barr. Good morning, Michael. Good morning, Alexis. Hot weather, as you mentioned, will settle over New York and the U.S. Northeast through the end of the week. Bloomberg meteorologist Craig Allen has the latest. The eastern two-thirds of the nation will have to endure another day of heat and oppressive humidity. Temperatures up to 15 to 20 degrees above average means 90s and a heat index over 100 for Washington to New York City into New England just inland from the harbor around Boston.

11:25And with FIFA World Cup games and the request to take mass transit, there is concern for Amtrak and commuter trains because of heat on the tracks and overhead power lines. Then a few strong thunderstorms to close out today, followed by a brief reduction in temperature and humidity for Saturday. Bloomberg meteorologist Craig Allen. Security will be strict this weekend when soccer's World Cup matches start in the U.S. John Cohn, senior expert on global threats for the Argonne National Laboratory, has some advice for fans heading to the events. I would dramatically reduce what you carry to these events.

12:03Some of these events will have no bag policy. So if you show up with a purse or a bag, you may not be let in with those items. Expect long lines. Expect road closures. John Cohn with the Argonne National Laboratory spoke to ABC. President Donald Trump's board at the Kennedy Center is trying to keep his name on the building before a court-ordered deadline to remove it by today. The board voted Thursday to seek a stay of a judge's ruling that Donald Trump's name was illegally added. Global news 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr, and this is Bloomberg Alexis.

12:41Thanks, Michael. Time now for our Bloomberg Sports Update, and for that, we bring in John Stashauer. Game five of the Stanley Cup Final in Raleigh, and Vegas scored first, but Carolina scored the next four. Andre Stetjikov scoring twice both on the power play. The Hurricanes beat the Golden Knights 4-2 and lead the series 3-2. Some history in the WNBA. Indiana beat Chicago in overtime, and Caitlin Clark scored 32 points with 10 assists. Her teammate, Aaliyah Boston, scored 34 with 12 rebounds. First time ever, teammates with over 30 points and a double-double. Mexico and South Korea won in the World Cup.

13:14That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions. Not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM. Support for the show comes from Public.

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15:43These may apply to Chase Business Complete Checking accounts. The$500 offer is available for new business check-in accounts with qualifying activities through June 18, 2026. Eligibility and qualification requirements must be met. Additional restrictions may apply. Please speak with a business banker for more information. JPMorgan Chase Bank, N.A., member FDIC. Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg.com and the Bloomberg Business app. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. Markets are building on hopes for an interim peace deal between the U.S.

16:21and Iran hours after President Trump threatened to strike Tehran for a third straight day. But now the president says a deal is close. And for more, we're joined from Dubai by Bloomberg Middle East correspondent Abir Abu Omar. Abir, what do we know about this potential interim deal? Good morning. Good morning, Nathan. So look, yes, what you mentioned about President Trump saying that a deal is as imminent as this weekend in Europe, it will be signed with the presence of Vice President J.D. Vance. Now, the market has reacted to that news because it was filled with some positivity or a sense of this time around is different.

16:59But perhaps the market is reacting even more positively to news that emerged about 45 minutes ago with Iran's semi-official news agency, Meher, saying that the negotiations or the potential agreement that is underway is being reviewed and finalized by authorities in Tehran. So according to the semi-official news agency, Iran has issued a draft with 14 provisions. According to it, they're citing a person that is close to the negotiations. And those 14 provisions include some of the concessions that we've been talking about over the past couple of months. That includes a permanent and immediate cessation of hostilities on all fronts, including in Lebanon.

17:40Remember, Lebanon was a key sticking point for Iran. That also includes a full lifting of the naval blockade within 30 days. a U.S. commitment to withdraw forces from areas around Tehran, the unblocking of the$24 billion of frozen assets and the lifting of oil sanctions. The report goes on to say that the final agreement, which focused exclusively on the fate of the highly enriched uranium, something that President Trump has been calling for, and sanctions relief, as well as the reconstruction of Iran economically because of the damage that it has suffered due to this war. Now, just very important caveat here is that this is still all subject to final approvals by the negotiating team, by the Iranian government.

18:27And we're still awaiting for some official statements from people that we have monitored in the past as official outlets for Iran. That includes the foreign minister, the speaker of the parliament and the president himself. But for now, we're seemingly getting these positive sentiment-filled news from the Iranian side. You're seeing Brent crude prices really reacting to this report that just came out about, again, 40 minutes ago, down about 5%, I believe, just above$80, levels we haven't seen in a while. In terms of the parameters that have been laid out in these semi-official Iranian news reports, how do they square with what we've been hearing on the U.S.

19:09side in terms of when the strait could reopen and what happens with Iran's frozen assets? Right. So that's the other caveat, right? We also don't know if this statement that came out from Meher is in line with the MOU that President Trump has touted yesterday. So President Trump has touted yesterday that the MOU that is underway, that is imminent, according to him, will address the reopening, the immediate reopening of the Strait of Hormuz, and it will address Iran's nuclear program. Those are the two things that he has mentioned. But according to the statement that we're getting from Iran, it really falls into Iran's favor because we're seeing that Iran is saying that the negotiations for a final ceasefire or the final deal are not going to go through until the unblocking of half of the$24 billion in frozen assets goes through.

19:58And so President Trump has opposed that in the past. Iran hawks in Washington have opposed that in the past, adding pressure on President Trump. We're also seeing the lifting of the oil sanctions, yet another thing that Washington is opposed to. So this whole deal seems to be playing very much into Iran's favor. And that is why I added those caveats, because we're still awaiting to see what the U.S. response to this deal is and whether it's in fact what they have been discussing or whether we're back to this back and forth rhetoric between the warring parties. Israel, Nathan, I may add, is another sticking point here because Israel earlier this morning said that it wasn't privy to the MOU that President Trump had touted yesterday.

20:41And so Israel continues its incursion in Lebanon. And so we're still getting some of that conflicting or some of those conflicting statements from all parties because Iran is saying all hostilities ending, including in Lebanon, Israel continues its incursion in Lebanon. So we'll have to wait and see if that is in fact addressed and that over the next 24, 48 hours and into Sunday, as you have mentioned, the G7 aspect there. Those will be important hours for us to watch. I really appreciate you coming on to give us the latest breaking details on this as we continue to watch them emerge. That's Bloomberg Middle East correspondent Abir Abu Omar joining us this morning from Dubai.

21:23We want to turn now to one of our other major top stories. It is history made on Wall Street. SpaceX is officially the world's biggest initial public offering, raising$75 billion on$135 a share. More than a half million, a billion shares offered, putting Elon Musk now on the verge of becoming the world's first trillionaire. So many superlatives. Dan Ives is global head of tech research at Wedbush Security. Anyone that's owning SpaceX, you're buying it for the Musk factor. And many that bet against Tesla and Musk going back a decade ago, that was proven historically wrong. That was White Bush analyst Dan Ives.

22:09For more, we're joined by Bloomberg News senior reporter Bailey Lipschultz. And it has to be said, Bailey, so much of this really is driven by the retail excitement around Elon Musk. Is that really what's underpinning just what I was talking about? So many of the superlatives surrounding this SpaceX IPO. Good morning. Good morning, Nathan. I think that's a big driver. And when you talk to folks around the company, there's a view of SpaceX, much like Tesla, that the retail investor understands these companies better, or at least is willing to give Elon Musk more credit and more grace than most institutional investors.

22:48But that's not to say that this wasn't a deal that was heavily, heavily bid up and chased by institutions. We reported that a number of firms put in orders for more than$10 billion worth of shares. We put out news that BlackRock indicated an interest of at least$5 billion. A number of sovereign wealth funds and pension funds also seemingly trying to get their hands on as much as they could. So it is a retail story. Retail is a big component. But when you look at a deal that comes together that raises$75 billion, it's hard to do that without institutional investors. So certainly a mix of the two.

23:26I think we'd had some reporting as well that there was more interest on the retail side than there were even shares available. What does that mean for some of these mom and pops or even some of the institutional investors who could be left out in the cold after this IPO? So there's a lot of excitement. And I think that was a big question going into the pricing and throughout this entire process, somewhere between 20 and 30 percent of the shares being sold to retail investors. What does that mean? Call it 15 to 20 billion dollars of stock is taken away from institutional investors from the company's perspective.

24:01And Elon has been a long kind of vocal supporter of retail. That makes sense. get your loyal investors some shares in their accounts and let them want to chase more from the institutional side, it can be kind of upsetting because maybe you put in an order that was quite large and you're getting, you know, one tenth, one twentieth of what you thought you were going to get. So when you look at kind of how this deal came together, I think the big question is when we do see the stock open up, how much excitement is coming from retail to your point and how much is coming from institutions because IPOs can be quite volatile.

24:38We've seen that a number of times. Where this thing opens, I think, is really anyone's guess. So it's going to be fascinating to watch. Well, what are we expecting when it comes to these shares coming to market when the market opens this morning? How much volatility could we see around SpaceX? A lot of volatility. I think that's a foregone conclusion just for folks who have never traded an IPO. it won't open at 930. We'll start to probably get indications of where it could open in the 10 o 'clock hour. This is a process that is expected to take probably until one or two o 'clock before even the first trade takes place.

25:17So we will see a number of headlines coming across the screen of these indications. But the thing to keep in mind that there are no shares trading at the indications. That's simply where NASDAQ and some of the other bankers are seeing and flashing potential demand, but you could see potentially astronomical numbers that are going to make people jump to foregone conclusions when it actually doesn't mean anything quite yet. We heard from Dan Ives a few minutes ago saying that historically people who've bet against Elon Musk have been left in the cold. We've also heard from short sellers, the likes of Jim Chanos saying that this IPO is built on hopes and dreams.