Latest Developments

Europe
The Guardian

SpaceX heads for record $1.78tn float amid fears it is overvalued

Space Exploration Technologies’ site in Hawthorne, California. The IPO is oversubscribed by three or four times. Photograph: Patrick T Fallon/AFP/GettyView image in fullscreenSpace Exploration Technologies’ site in Hawthorne, California. The IPO is oversubscribed by three or four times. Photograph: Patrick T Fallon/AFP/GettySpaceXSpaceX heads for record $1.78tn float amid fears it is overvaluedAnalysts say IPO that could make Elon Musk the world’s first trillionaire has a ‘major disconnect’ on price Elon Musk’s SpaceX is set to launch the biggest stock market float in history amid warnings that it may be overvalued. The space exploration, satellite broadband and AI company will join the US stock market on Friday at a valuation of $1.78tn, after offering at least $75bn of shares to investors through an initial public offering. The offering is oversubscribed by three or four times, according to Reuters, with more than $250bn of bids from investors keen to take part in the IPO. The $75bn share offer is nearly three times the previous record, Saudi Aramco’s $29.4bn offer when it floated in 2019. If the float goes as planned, Musk could make history as the world’s first trillionaire. However, the investment research group Morningstar has calculated that SpaceX is worth only $63 a share – well below the anticipated IPO price of $135 – and warns there is “a major disconnect between market expectations and underlying fundamentals”. Michael Field, the chief equity strategist at Morningstar, suggests investors should sit out the IPO and wait for “a more attractive entry point down the line”. “We believe the business has real strengths, particularly in Starlink, but with so many unknown and untested technologies underpinning much of the valuation price, particularly within the AI business, we think the valuation is extremely speculative,” Field said. SpaceX, which made a net loss of $4.9bn in 2025, is made up of three businesses: space exploration, including its Falcon and Starship rockets; connectivity, such as its Starlink satellite constellation providing high-speed internet access; and artificial intelligence, though its xAI division. At $1.78tn, the IPO values SpaceX at roughly 92 times its trailing sales, a very hefty valuation which means investors are wagering that Musk can achieve his ambitious goals for the company – such as orbital datacentres in space, building a base on the moon and cities on other planets, and to “extend the light of consciousness to the stars”. SpaceX has claimed that Starlink has a total addressable market of $1.6tn; Morningstar estimates the segment’s realistic global opportunity at about $129bn. Earlier this week, the US senator Elizabeth Warren called for the Securities and Exchange Commission to delay SpaceX’s IPO, owing to concerns about the company’s valuation and corporate governance.

SpaceX heads for record $1.78tn float amid fears it is overvalued
Europe
The Guardian

AI wealth boom sending San Francisco home prices surging: ‘It’s ridiculous’

The ‘painted ladies’ in San Francisco on 20 August 2024. Photograph: Ethan Swope/Getty ImagesView image in fullscreenThe ‘painted ladies’ in San Francisco on 20 August 2024. Photograph: Ethan Swope/Getty ImagesSan FranciscoAI wealth boom sending San Francisco home prices surging: ‘It’s ridiculous’Employees at artificial intelligence companies are coming into gargantuan sums of money amid boom in IPOs Home prices in the San Francisco Bay Area’s already expensive market are skyrocketing as employees at leading artificial intelligence companies come into gargantuan sums of money thanks to a boom in initial public offerings. With San Francisco’s OpenAI and Anthropic, as well as SpaceX, which operates a major facility in the Los Angeles area, eyeing debuts on the stock market, the hot housing market may not abate soon. If their initial public offering (IPO) is well-received, the companies’ multibillion-dollar valuations are poised to produce massive wealth for employees and executives holding shares, which experts say could trigger an uptick in demand for the Bay Area’s limited housing stock. As of March 2026, the median home sale price in San Francisco was more than $2m, according to a report from real estate brokerage Compass, an 18% increase from the previous year. That same month, on average, a house spent 29 days on the market before being sold, the fastest sale rate observed since spring 2022, per the report. And experts say demand is likely to further increase, while supply remains low. “My joke is that you have to show up to whatever the open house is. Be there a half-hour early. Have a bag of cash with you. Be willing to pay. It’s ridiculous,” said Quintin Mecke, executive director of the Council of Community Housing Organizations, a coalition dedicated to affordable housing. The recent flush of capital in the metropolitan area can probably be traced to tender offers – employees given the opportunity to sell their equity – at major AI companies. More than 600 employees at OpenAI, the company behind ChatGPT, cashed out last fall on shares that collectively totalled $6.6bn, the Wall Street Journal reported in May. Of that group, roughly 75 people pocketed $30m each. View image in fullscreenOpenAI CEO Sam Altman’s house in Russian Hill after a suspected molotov cocktail attack in San Francisco, on 13 April. Photograph: Anadolu/Getty Images“If somebody’s thinking about it wisely, they’ll be thinking: ‘Well, I have this large sum of money coming my way. What is a large purchase that I may need to acquire at some point?’ And the home is on that very short list,” said Drew Wilkerson, a real estate adviser with Sotheby’s International Realty. Wilkerson and real estate agent Spencer Hsu, who estimates about 80% of his clients work in AI, have seen competition become particularly fierce in the higher end of the market where homes sell for $5m and above. “Just this last week, I had five calls from new buyer clients who said: ‘I know that OpenAI and Anthropic and SpaceX and these IPOs are going to happen. I want to try to get in the market before that wave of money comes,’” Wilkerson said. Even though home prices are high, some of these potential buyers reason the market will only get more expensive post-IPO. “‘I might as well just buy it now,’” Hsu said, describing their mentality. View image in fullscreenSan Francisco, on 30 December 2025. Photograph: Anadolu/Getty ImagesHigh-earning tech workers influencing the Bay Area’s housing market is not a new phenomenon. The dotcom era ushered in a millionaire class plucked from the C-suites of buzzy internet sites. In the ensuing so-called “gold rush” era, “shares went up like crazy … house prices soared”, said Ken Rosen, chair of the University of California, Berkeley’s Fisher center for real estate and urban economics. A similar housing dynamic played out again in the early 2010s, when employees at Twitter (now X) and Facebook (now Meta), among other top tech firms, got substantial paydays from those companies’ IPOs.

AI wealth boom sending San Francisco home prices surging: ‘It’s ridiculous’
Europe
BBC Business

India's 'blue gold' starts a new drinks industry

His 10-acre farm in Kandukur is on the Deccan Plateau, which covers a large part of southern and central India. There he grows tomatoes, peanuts and corn. But in 2010 he was approached by traders looking for a very different crop - the cactus agave americana. For him and his fellow farmers the agave cactus was just a "stubborn, valueless weed" - planted as fencing to keep wild animals off their crops. But it is also part of the family of agave plants that feed the $15bn (£11bn) global market for tequila and mezcal. In Mexico, blue agave is farmed in the state of Jalisco to supply the tequila industry. Only plants from select areas of Jalisco can be used to make tequila. Unlike in Mexico, where vast plantations dominate the landscape, nobody grows agave commercially in India - at least not yet. Instead, Indian farmers and entrepreneurs collect and process agave that grows wild. For some, like Venkatesh, it's a welcome source of extra income - earning it the name "blue gold". These days Venkatesh ranges across an area of 100km (60 miles), co-ordinating villagers and farmers. "By combining the yields of multiple farms, I ensure a steady, high-volume supply that distilleries are willing to pay a premium for," he says. The most important part of the plant is the heart, known as the piña because it resembles a giant pineapple. Skilled workers reveal the heart by chopping off the spiky leaves. But getting the timing of the harvest right is crucial.

India's 'blue gold' starts a new drinks industry
Europe
BBC Business

My friends always want to split the bill equally, how do I say no?

One friend orders two cocktails. Another "just wants to try" that £16 truffle arancini starter. But you stuck religiously to tap water. So when the waiter places the card reader on the table at the end of the night, you are facing a social minefield. Even if you are sober enough to manage the mental arithmetic, you will be hard-pushed to overrule the jolly friend who shouts: "let's just divide it equally!" "When we eat out, we always just split the bill," says Ella, a communications assistant from Leeds. The 23-year-old says she never suggests to her friends they all just pay for what they've ordered as "it just feels awkward". Ella earns over £30,000 but some of her friends earn more and she finds it hard to say no if they want to go somewhere a bit fancy that she can't really afford. Instead she matches her order with theirs so she isn't left feeling short-changed. When that happens, rather than tell her friends how she feels, she scrabbles around for extra money. "I'm probably on the phone to my mother in secret asking to borrow that extra bit of cash," she says. Research from the Money and Pensions Service (MaPS) in 2025 found that only four in 10 adults do feel comfortable talking to friends about money, with women significantly less likely to feel okay discussing finances with friends (39%) compared to men (50%). Ella says money is almost never discussed within her friendship group. They have booked a four-night beach holiday costing around £680 each for flights and accommodation and they are using a bill-splitting app to log expenses before balancing everything at the end. "We never really consider if something is affordable or not," she says. "We all pay the same, no matter your salary." Rolling into the restaurant and announcing you won't be footing your friends' booze bill can make you feel like a bit of a buzzkill if others are planning to live it up. But experts suggest that is best way to tackle the problem: be open from the start. Laura Pomfret, chief executive of women's finance community Financielle, says people worry that speaking up will ruin the atmosphere. But friends often respond positively if you are honest about your financial situation, she says.

My friends always want to split the bill equally, how do I say no?
India
The Hindu BusinessLine

El Nino has set in, Positive IOD likely by July, says Japanese weather body

Drought-bearing El Nino has set in, while a positive IOD will emerge by July (boreal summer), the Japanese weather agency JAMSTEC has said. “As predicted earlier, an El Nino occurred,” JAMSTEC said Thursday, thus becoming the first agency to declare the arrival of the climatic pattern. JAMSTEC’s predictive model, SINTEX-F, forecasts a further development of El Nino towards a strong El Nino in boreal summer, between June and August. A few members of the ensemble are forecasting a “super” El Nino late in 2026. SINTEX-F (Scale Interaction Experiment-Frontier) is a coupled ocean-atmosphere climate prediction system developed by JAMSTEC in collaboration with European partners. The tropical Indian Ocean is currently in a neutral state, SINTEX-F said. The model predicts a positive Indian Ocean Dipole (IOD) event in the boreal midsummer (July). ​A positive IOD can bring more moisture to India, often helping monsoon rains even in an El Nino year. IOD is a climate phenomenon caused by variations in sea temperatures in the Indian Ocean. Its positive, negative and neutral phases can influence the Indian monsoon. The development comes on the heels of the India Meteorological Department (IMD) lowering its forecast for the South-West Monsoon to receive 90 per cent of the long-period average rainfall. The monsoon has arrived 3 days late this year on the Kerala coast on June 4. The model predicts hotter-than-normal conditions for much of the globe during the July–September average. Relatively high signal-to-noise ratios are observed in the western United States, Mexico, Central America, most of South America (excluding Argentina and southern Chile), New Zealand, southern and western Australia, most of Africa, most of the Middle East, some parts of Europe, Turkey, Indonesia, Papua New Guinea, many islands in the tropical Pacific, most of Southeast Asia, India, Mongolia, some of China, and Hawaii, the report added. Meteorologists use the signal-to-noise ratio (SNR) to help them determine how much of the data they get from the atmosphere is signal (good information) and how much is noise (random background interference). If the SNR is high, it means the real weather trend is obvious The report said southwestern Polynesia will be cooler-than-normal. The model shows above-normal temperatures for much of the globe during the boreal autumn (October). Drier-than-normal conditions are forecast across Central America, the Caribbean, western Brazil, eastern Australia, parts of East Africa, parts of western equatorial Africa, Yemen, Nepal, North India, Malaysia, Indonesia and some islands in the southern tropical Pacific during July–September.

El Nino has set in, Positive IOD likely by July, says Japanese weather body
India
The Hindu BusinessLine

Policy uniformity, public trust vital for India’s ethanol blending success

Higher ethanol blends in petrol aim to cut oil imports as India expands its biofuel roadmap. To ensure the Ethanol Blending Programme succeeds, the government must standardise state-level taxes and educate consumers to resolve lingering doubts about the fuel. To accelerate its Ethanol Blending Programme (EBP) by granting complete excise duty exemptions on higher ethanol-blended petrol variants -- specifically targeting E22, E25, E27, and E30 blends – the Centre is establishing a financial and technical framework designed to curb India’s reliance on expensive crude oil imports. However, this may not be enough. Bharati Balaji, Deputy Director General of the All India Distillers’ Association (AIDA), told businessline that excise exemptions provide a vital commercial route for surplus ethanol capacity, which currently exceeds E-20 programme requirements. AIDA is urging state governments to align tax structures to ensure benefits reach consumers, while actively collaborating with the Ministries of Petroleum & Natural Gas, Road Transport, and Food to address concerns regarding reduced fuel efficiency, she said. “Consumer awareness is a vital pillar for the long-term success of India’s ethanol blending program. Historically, introducing new products to the Indian market triggers immediate resistance, as seen when chemical manufacturers protested molasses procurement during the program’s initial rollout. These challenges are simply standard, temporary hurdles,” she said. Balaji emphasised that consumer awareness is vital, noting that while ethanol’s lower energy content might slightly reduce fuel mileage, the issue must be viewed through a broader lens. She urged a focus on overall vehicle technology, efficiency, carbon emissions, running costs, energy security, and environmental benefits. “The minor mileage drop we are talking about applies to vehicles built before 2023,” she said, adding that “It is important to note that modern vehicles are designed and calibrated for E20. In fact, they are engineered to optimize performance, emissions, and fuel efficiency under higher ethanol blends.” On feedstock, Balaji explained that AIDA members—comprising top grain, molasses, and integrated distilleries—control about 80 per cent of India’s ethanol production. She highlighted that fuel ethanol is a substantial, fast-growing part of the distillery ecosystem, driven by market demand and government policy. Explaining the capacity metrics, Balaji noted that India’s current installed ethanol capacity stands close to 2,000 crore litres. With the Ethanol Blending Programme (EBP) requiring 1,100 crore litres and alternative sectors—including potable alcohol, pharmaceuticals, and chemicals—consuming 334 crore litres, total demand reaches 1,434 crore litres. This leaves the industry sitting on a notable surplus capacity of approximately 566 crore litres. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

Policy uniformity, public trust vital for India’s ethanol blending success
India
The Hindu BusinessLine

IT rout: Infosys, HCL Tech, TCS shares fall as Nifty IT declines on global tech selloff

The selloff in information technology stocks deepened on Thursday, with the Nifty IT index emerging as the worst-performing sectoral index as concerns over rising inflation, elevated interest rates and rich valuations in artificial intelligence-linked companies weighed on sentiment. The weakness in domestic technology stocks mirrored a sharp overnight decline in global technology shares. US markets ended lower, with the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite falling 1.9 per cent, 1.6 per cent and 2.0 per cent, respectively, amid continued selling in technology stocks, hotter-than-expected US inflation data for May 2026 and escalating US-Iran tensions. Wall Street’s recent weakness has been driven by a selloff in AI stocks amid concerns over stretched valuations. Nvidia, Broadcom and Super Micro Computer declined sharply, while Micron remained volatile. Investors are also reportedly reallocating funds ahead of upcoming high-profile US listings, including a potential SpaceX IPO. The Nifty IT index fell as much as 2.6 per cent to 27,519.15 in early trade before settling with 1.6 per cent loss at 27,821, from its previous close of 28,279.90. The index has fallen 11.5 per cent since June 2, 2026, (recording a closing value of 31116.55). Infosys, LTM, OFSS and HCLTech were among the biggest losers, declining 2-3 per cent at the time of writing. Heavyweights TCS and Wipro also traded lower. All counters, including Persistent Systems, Tech Mahindra and Coforge ended in red. During the session, TCS, Wipro, HCL Tech and LTM hit a fresh 52-week low. According to Sumit Pokharna, SVP - Fundamental Research at Kotak Securities, apart from the global risk-off sentiment, concerns around rapid advances in artificial intelligence are adding to pressure on the sector. “Nifty IT Index is down around 2 per cent today, and in the last six months it has fallen around 27 per cent,” Pokharna said. He noted that Anthropic’s recently launched Claude Fable 5 and Mythos 5 models have intensified concerns around revenue deflation for Indian IT services companies, particularly those with significant exposure to application development and maintenance (ADM) services. According to Pokharna, the new AI models deliver significantly stronger software engineering capabilities, with AI-generated code quality approaching human levels and potentially surpassing it within the next year. “The key concern is that productivity improvements in software engineering are occurring much faster than in non-software domains. This increases the risk of lower effort requirements, reduced billing volumes, and pricing pressure for traditional application development and maintenance contracts,” he said.

IT rout: Infosys, HCL Tech, TCS shares fall as Nifty IT declines on global tech selloff
North America
CNBC Finance

World Cup travel boost hasn't materialized for U.S. businesses — yet

The 2026 World Cup is expected to bring a wave of global soccer fans to North America. But the travel boom is shaping up to look less like one uniform surge and more like a city-by-city, match-by-match test of pricing power. "Demand is real and positive, but it's not evenly distributed across host cities," said Jay Wardle, president of travel data intelligence company Sojern. New flight-booking data from Sojern shows most U.S. and Canadian host cities are seeing year-over-year gains for the tournament window, led by Houston and Dallas. But Seattle and all three Mexican host cities are trailing last year's pace. The tournament kicks off Thursday in Mexico City and runs through mid-July, ending with the final at New York New Jersey Stadium — better known as MetLife Stadium — in East Rutherford, New Jersey. It is the biggest World Cup ever, with 48 teams, 104 matches and games across the United States, Canada and Mexico. For hotels, restaurants, airlines, ride-sharing companies and host cities, the pitch has been straightforward: more teams, more games, more fans and more spending. But Deutsche Bank said even if it brings 1.2 million international fans to North America, the overall economic impact will likely be limited in a U.S. economy of this size — amounting to a short-term GDP lift of roughly 0.05% if FIFA's estimate is reached. The financial bonanza is likely to be split unevenly among cities, hotels, restaurants and other tourism-dependent businesses. Airbnb said it is expecting its best event ever, surpassing the 2024 Paris Olympics. The company expects to benefit from families and groups looking for larger accommodations or lower per-person costs. It could also benefit from how long travelers are staying. Sojern's data shows more than three-quarters of World Cup travelers plan to spend six to 12 nights at their destination. "We're pretty enthusiastic about the impact of FIFA as we look at booking patterns coming into the summer," Marriott CEO Tony Capuano told CNBC. "We're seeing really strong demand patterns in both FIFA and non-FIFA cities in the U.S." Capuano said Marriott expects the World Cup to lift U.S. revenue per available room by about 40 basis points. Marriott, the world's largest hotel chain, said it's particularly well-positioned because of its brand recognition and rewards ecosystem.

World Cup travel boost hasn't materialized for U.S. businesses — yet
India
The Economic Times

SpaceX IPO: Know date, price, valuation, how to buy and other important details

Elon Musk's SpaceX is preparing for what could become the largest initial public offering in history, with the rocket and satellite giant seeking to raise $75 billion at a valuation of about $1.75 trillion. Investor appetite has been overwhelming, with demand reportedly running at nearly four times the shares on offer, per Reuters. Here are important details investors should know. SpaceX is expected to wrap up its investor roadshow this week. The IPO is scheduled to be priced on June 11, while the company's shares are set to begin trading on the Nasdaq on June 12. The company has fixed its IPO price at $135 per share. Through the offering, SpaceX aims to raise $75 billion, implying a valuation of approximately $1.75 trillion. While SpaceX is targeting a valuation of $1.75 trillion through its $75 billion IPO, some analysts have expressed concerns about the pricing. Morningstar said in a note published on Monday that the company appears "significantly overvalued" and suggested investors may find better entry opportunities after the stock starts trading. Indian retail investors are unlikely to receive IPO allocations, as the U.S. book-building process does not provide a mechanism similar to India's ASBA system. For most Indian investors, the practical option would be to purchase shares after listing through international investing platforms or via NSE IX in GIFT City. Despite strong investor interest, SpaceX remains loss-making. For 2025, the company reported revenue of $18.67 billion and a net loss of $4.94 billion. Investor optimism is largely tied to future growth opportunities in satellite broadband, launch services, defence contracts and AI-related businesses rather than current profitability. The IPO is reportedly being structured as an all-primary issue, meaning the entire proceeds from the offering will go to the company. Existing shareholders will not sell shares as part of the IPO and will continue to be subject to lock-in restrictions after the listing. Elon Musk is expected to retain effective control of the company even after the IPO. Regulatory filings indicate that he will hold about 82.4% of voting rights through Class B shares, which carry ten votes per share. Public investors will receive Class A shares, which come with one vote per share. SpaceX's debt profile remains an area to watch. According to a Reuters report citing regulatory filings, the company secured a $20 billion bridge loan in April to refinance a significant portion of its existing debt ahead of the IPO. The loan was provided by a syndicate of lenders that was not identified. Under the loan terms, SpaceX could be required to use IPO proceeds to repay the borrowing if it is not refinanced or repaid through other sources within six months of the offering. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

SpaceX IPO: Know date, price, valuation, how to buy and other important details