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Bloomberg Television46 min

Aramco Tower Targeted in Riyadh as Eisenkot Gets Israeli Government Mandate

Eisenkot, Benjamin Netanyahu, Jensen Huang, Charles-Henry Monchau, Marco Rubio, Sergio Ermotti, Mohammed Ali Yasin, Stella Li, Paul Allen, Winnie Su, Min Min Lo, Onur Ant, Dan Williams

Interview, Statement
  • NVIDIA CEO scandal and investigation:
    • Jensen Huang admitted to an extramarital affair with Alice Huang, a former executive at Megaspeed International suspected of being a Chinese spy.
    • The NVIDIA board has launched an independent investigation to determine if Huang was targeted by foreign intelligence efforts.
    • NVIDIA stated it currently has no evidence that U.S. national security or company secrets were compromised.
    • Huang plans to remain as CEO during the probe, noting no internal successor has been groomed.
    • Beijing has denied allegations that Alice Huang is a spy, calling them baseless.
    • President Trump publicly endorsed Huang, stating he believes the CEO should remain in his role.
  • Global market reactions:
    • Asian markets rebounded with the MSCI Asia index rising over 2%, its best day since July.
    • Taiwan's TAIEX led gains with a 5% increase after authorities curbed short selling and deployed a stabilization fund.
    • NVIDIA's stock rebound was supported by tech sector gains, with suppliers like SK Hynix and Samsung Electronics rising.
    • Chinese assets underperformed, with Hong Kong's Meituan dropping 6% following Morgan Stanley and HSBC downgrades.
    • U.S. S&P 500 futures ticked up roughly 0.5%, signaling a potential positive open following a 1% Nasdaq gain on Friday.
    • Swaps markets now price a 76% probability of a Federal Reserve rate increase at the final meeting of the year.
    • Bank of America's CIO Charles-Henri Monchaux attributes the recent sell-off to abnormal hedge fund de-hedging rather than fundamental AI cycle termination.
  • U.S.-Iran diplomatic tensions:
    • President Trump signaled restraint regarding further strikes if substantial progress is made in negotiations.
    • U.S. Secretary of State Marco Rubio downplayed the likelihood of a breakthrough, labeling Iranian demands as "outrageous."
    • Iran maintains seven demands unchanged since June, centering on port blockades, sanctions, and nuclear policy.
    • Recent attacks in Saudi Arabia intensified, damaging a financial district building and threatening economic normalcy.
  • Israeli political developments:
    • Gadi Eisenkot received the mandate to form the next government, facing a four-week deadline to build a coalition.
    • Eisenkot aims to end Benjamin Netanyahu's political career but may seek a unity alliance if he fails to secure a majority.
    • Potential outcomes depend on forming a coalition with ultra-Orthodox or Israeli Arab parties.
    • Eisenkot, a former IDF chief, aligns with Trump on the military threat of Iran but differs on the feasibility of regime change.
    • He intends to pursue the destruction of Hamas in Gaza, potentially utilizing interim governance models for liberated areas.
  • UAE market trends and delistings:
    • Kuwait's Agility and Dubai's Emaar Properties are considering delisting or privatizing assets amid weak IPO activity.
    • Mohamed Ali Yassin, CEO of GAFA Benefits, attributes the delisting trend to companies seeking to consolidate assets due to depressed valuations.
    • Emaar Properties offered to buy its construction arm for $16.3 billion, citing a low P/E ratio of 5-6x for the subsidiary.
    • The UAE IPO market has slowed significantly since March, with risk appetite dropping due to geopolitical instability in the region.
  • Energy and AI infrastructure investments:
    • Anthropic agreed to a $3.4 billion deal for gas-fired generators covering 1.7 gigawatts of capacity.
    • OpenAI reportedly closed a funding round of roughly $11 billion, valuing the company at $1.25 trillion.
    • UBS CEO Sergio Amati expressed low concern regarding AI stock sell-offs, citing client diversification and a long-term investment focus.
    • BYD is expanding into the Middle East and Africa, planning to deploy solar-powered flash charging stations in the GCC.
  • Regional economic and political events:
    • Hacked data from Russia's Rosstat indicates approximately 400,000 Russian soldiers have died in Ukraine since the full-scale invasion.
    • Poland declared two days of national mourning after a mass shooting in Krakow killed six people.
    • South African political parties intensified coalition negotiations following municipal elections where no party won outright in seven of eight major cities.
    • Senegal's borrowing costs hit a yearly high as the country raised $145 million in a West African debt sale amid IMF program disputes.
    • Turkish authorities arrested the former deputy chairman of the Capital Markets Board in a widening investment fund scandal.
    • Iraq reached an agreement with the U.S. to resume oil exports via a shipping lane near the Strait of Hormuz, resolving insurance concerns.
  • Commodity prices:
    • Brent crude held steady at $98.32 per barrel following last week's steep sell-off.
    • The 10-year U.S. Treasury yield eased slightly to 4.87%.
    • Oil prices remain pressured by gridlock in U.S.-Iran diplomacy but are stabilized by traders weighing potential diplomatic breakthroughs.