$1.25 Trillion Musk Merger, Police Probe Mandelson, More

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Unknown 0:00
The UK stands apart as a place to do business, not because of one advantage, but many working together. Over £10 trillion in capital, four of the world's top universities, a 10-year industrial strategy in action, its stability with dynamism, global reach with local depth. It all adds up to greater growth. Find out more at business.gov.uk slash growth.
Stephen Carroll 0:28
News when you want it with Bloomberg News Now. I'm Stephen Carroll.
Caroline Hepker 0:32
And I'm Caroline Hepker.
Stephen Carroll 0:34
Elon Musk has announced that he's combining SpaceX and XAI in a deal that values the enlarged entity at $1.25 trillion. In a statement on SpaceX's website signed by Musk, the rocket firm said it acquired XAI to form the most ambitious vertically integrated innovation engine on and off Earth. The deal brings together two of the largest closely held companies in the world. Bloomberg's M&A correspondent Ryan Gould says it's possible Musk could also be eyeing a tie-up with Tesla in the future.
Ryan Gould 1:06
Elon's view is that we're going to have data centres in space and part of this is about putting compute and the idea of space exploration and sort of exploration of the universe together. This is clearly part of his vision. There is a very good quote that kind of encapsulates a lot of this, which is what he wrote, I think, late last year, which is that in some ways his companies, his three companies, Tesla, SpaceX and XAI, are going to come together, they're going to convert. And maybe this is kind of the first leg of the stalwart that we're now seeing.
Stephen Carroll 1:31
As Bloomberg's Ryan Gould, the combined SpaceX firm is still expected to go public later this year as the world's richest man looks to increasingly costly bets on artificial intelligence and space exploration.
Caroline Hepker 1:43
President Trump and Prime Minister Narendra Modi have agreed a surprise deal to slash US tariffs on India. American levies on Indian goods are being cut from 25% down to 18%, while an additional 25% punitive duty tied to purchases of Russian oil is being scrapped. Writing on social media, President Trump said India had agreed to buy $500 billion of US goods and halt crude purchases from Russia as part of the deal. Speaking to Bloomberg, India's chief economic advisor, Ananta Nagaswaran, hailed the boost to Indian markets and the economy.
Ananta Nagaswaran 2:21
This was something that was one big stumbling block to sentiment in the capital market and also for the Indian rupee, as you pointed out. So I'm not surprised that the reaction is very positive in both these markets. And I mean, at the end of the day, it is the world's biggest consumption market, 21 trillion dollars of GDP. And therefore, to be able to have access to it is important.
Caroline Hepker 2:44
That was India's chief economic advisor, Ananta Nagaswaran. At 18%, India's tariff is now lower than most Southeast Asian countries.
Stephen Carroll 2:55
Precious metals are recovering some of their losses today after plunging from record highs over the past few days. Spot gold climbed as much as 4.2% after falling by close to 5% yesterday. Silver rising as much as 8.1%, erasing the previous day's loss before pairing those gains. Bloomberg's Brendan Fagan says it appears the worst of the sell-off is over.
Brendan Fagan 3:17
The constructive thing is holding those key moving averages. It may suggest that systematic traders are stepping in to start nibbling after quite the washout we had. But like I said, you never really want to catch a falling knife here. So there could be more to come, but it seems like the worst is behind us and where we held is relatively constructive.

What is the significance of Elon Musk's $1.25 trillion merger of SpaceX and XAI?

Stephen Carroll 3:33
Bloomberg's Brendan Fagan was speaking after investors had been piling into gold and silver over recent weeks, driven by renewed concerns about geopolitical upheaval, currency debasement and threats to the Federal Reserve's independence.
Caroline Hepker 3:46
The UK's Metropolitan Police says that it's reviewing reports that Peter Mandelson committed misconduct in public office following the latest release of Epstein files. Documents appear to show that the former UK ambassador to the US leaked sensitive government information to the convicted sex offender while serving as a minister in Gordon Brown's Labour government.

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