油价突破105美元，Broadcom拟融资300亿美元支持OpenAI

On track for a second day of selling 30 minutes until the start of your trade. I'm Danny Burger. I'm Mike ball. Bloomberg open interest starts now. Coming up on today's show. Oil jitters return. Brent tops 105 fueling fresh selling in stocks and bonds. Another mega eye financing deal is taking shape as the chorus of bubble warnings start to grow, and Goldman's top executives are in line for one of the bank's biggest bonus payouts ever.

Now some of the stocks are watching. Pepsi is up in the premarket, even though there was a little bit of concern about how much people are spending with higher prices, they did beat Wall Street's beat Wall Street expectations both on the earnings and revenue side, international sales. That's what helped them because there was softer demand in North America. The company did, though, cut its full year profit outlook as higher cost pressure pressures margins I'm elsewhere.

The big driver of this market is oil that is rising. Take a look at the price action here. Up 2.5%. Middle East tensions stoking concerns about inflation. Let's head back over to the desk where Michael Paul joins once again this morning. And Mike it's again oil really dominating things this morning. And that's sending yields higher. Too high a couple things going on. For one the Atlantic reporting that perhaps this president is going to strike on Iran before the midterm elections.

And concerns just ratcheting up of tensions in the region to yeah, good yields taking the cue and oil again in the driver's seat. It's funny. We had a good ten year auction yesterday. The minutes didn't really change the narrative. Lawler sounded a little more hawkish said things because of growth being strong. Things can go a little quicker below. And behold, here we are again talking about oil. We don't know. And again, it's not just the Middle East.

I keep pointing this out. The actual attack in the Black Sea sort of also set this off because the Russian barrels now are more in question. So there's a bigger geopolitical risk premium. On top of that, of course, we have a financing right there with the yield tire. That's exactly where I was going to go next. We're going to get into this with Sarah Fryer in just a moment. But it's another day of another company looking to borrow tens of billions of dollars to fund their AI spending.

It was SpaceX yesterday. Broadcom today. And by the way not just companies. This government too. We had a ten year auction yesterday. It went well. But we're going to get a 30 year auction today right. And the 30 year is actually more important in a lot of ways because it's more about the fed credibility, which we have rebuilt. But the worry is now if they kind of pause, and we've seen this in other parts of the world, if they pause and it becomes more unhinged again and more pressure on all the financing of everything, let's talk about the financing and start with that tech story.

Because as we mentioned, Broadcom already looking at another massive AI financing deal, this one tied to open AI. The company has held early talks about ranging $30 billion in debt to help OpenAI pay for the custom AI chips that the two companies are developing together. Let's discuss with Bloomberg Tech editor Sarah Fryer. And Sarah, it's another day with this type of deal. Nvidia does this a lot to the sort of chip financing, secular financing, concern type deals.

But what are the details behind Broadcom yet again arranging raising money to fund the purchase of chips that it's co-developing with OpenAI? I mean, we're seeing this over and over. Um, they're working also with anthropic. They're working also with Google. Um, this is uh, I'll say it again, an extremely expensive business to build in. You need new chip. Your chips only have a certain lifecycle. You need to keep developing new ones.

You need to buy chips to house in the data centers. You need to furnish the data centers in, in, uh, different communities. Uh, make sure that they are that you have the energy resources. It is a lot. Um, and and this is this is, uh, OpenAI, uh, fresh off of, um, deciding or declaring that they're going to IPO next year. I know that happened a couple months ago, but in our in our minds, you know, that's still pretty recent.

Um, they have the need for more money, for more financing to fund their growth if they're not going to IPO this year. So they're working here with Apollo and Black. So I'm just looking at my notes here at 20GW of eye computing capacity by 2028. This number keeps changing. Like how much confidence does the market have. I mean every week it just keeps growing. It's not even monthly anymore. It's just going so quick. It's growing quickly.

And I think we also need to think about the different factors involved in that growth. Right. It's not just, um, the demand in the market for I, it's also the cost of these chips. It's it's the, the supply calculation. There just aren't as many of them to go around. They need more and more training around. They need to get their product to be better and better. Um, and this is you're right. It's going to accelerate. And then you get to a question of, of when does this collide with reality?

When or when do we just or are we just fundraising? Um, until there is no there's no more funders willing to do private debt deals and, and, um, complicated creative financing deals, um, in the public market can't withstand it, you know, where when do we get to that point? You know, I don't think that we're at that point yet. Um, but it's certainly something that that we're looking at, we're looking at, you know, when people are skeptical of public market, uh, events, for example, if there's an earnings where a company is extremely well, but it's not good enough, um, as we saw recently, um, you know, I think we're going to see a lot more of that this quarter.

This earnings season is going to be very telling. Yeah, it's very expensive. And then consumers don't want to pay up for this stuff, which doesn't help either. Sarah, thank you so much for joining us. Bloomberg's Sarah Fryer. Let's turn to earnings now. And PepsiCo beat third quarter expectations. But it cut its outlook. The company is facing higher costs in North America that are weighing on margins. But international business was strong enough to help shares move higher this morning.

Joining us now is Ken Shea, senior consumer products analyst at Bloomberg Intelligence. Ken what was your reaction to the earnings figures this morning? Yeah. Hi, Danny. Um, as you said, it's kind of a mixed bag. You know, the International Division now, 45% of its sales is really, well, you know, 8% topline organic growth. Wonderful. The problem is that Pepsi Food North America continues to be a sluggish performer, well below company expectations.

You know, earlier in the year, they said we're going to revamp the products, uh, making more healthy, functional, uh, attributes and so on. And they have to their credit. It just hasn't resonated yet with consumers to to move that top line fast enough yet. And so, as you alluded to, the company cut its guidance primarily because of its low performing PepsiCo North America division. And I think the company's going to have to face some, uh, tough decisions going forward.

You know, it's clearly underperforming, and they have a lot of far flung assets, and it'll be interesting to see how extensive they addressed the situation. So it sounds more like a sort of brand specific issue. Maybe they're a little behind consumer trends here in America, or is this sort of something we can still say has a little bit of a macro pulse to it, where you're generally seeing consumers pulling back from this category?

Oh, sure. That that's definitely part of it. Uh, no doubt. I mean, consumers feel the pinch, you know, and PepsiCo to their defense, which are not the only, uh, consumer goods or food manufacturers for that matter, are facing these pressures we saw from G