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Asia-Pacific
The Straits Times

This research firm says SpaceX is worth less than half its IPO target

Morningstar analysts pegged SpaceX‘s valuation at US$780 billion, less than half the US$1.77 trillion ($2.3 trillion) that the Elon Musk’s company is targetting. Bengaluru - SpaceX just set a price for its initial public offering that would make it the largest ever, but one research firm has warned that Elon Musk’s rocket and AI behemoth is “significantly overvalued.” Morningstar analysts pegged SpaceX‘s valuation at US$780 billion (S$1 billion), less than half the US$1.77 trillion ($2.3 trillion) that the company is targetting with its US$135 per share IPO. Prospects for the company’s artificial intelligence business, which includes xAI and social media platform X, were uncertain given unclear economics and competition from OpenAI and Anthropic, the research firm said. “We don’t see Grok as one of the leading AI labs today,” said Morningstar equity analyst Nicolas Owens, referring to the chatbot developed by xAI. Owens also warned that the future promise of SpaceX‘s AI segment relies on untested technology such as orbital data centres. Starlink, the satellite broadband business, also faces technological hurdles, many of which may be outside the company’s control, he said. “We think the company has been significantly overvalued and investors will have opportunities to buy the stock at more attractive levels after the IPO,” Owens said. The warning stands out as a rare contrarian view at a time when enthusiasm for the IPO has been high. Most companies that go public set a preliminary price range for their stock offering before settling on a final number in case investor demand for their shares changes. But Musk and SpaceX sidestepped that and simply declared one price for investors, the New York Times noted. SpaceX could still change that price but is not expected to do so, the newspaper added. Its current valuation of US$1.77 trillion from its IPO price would be more than 40 per cent higher than the US$1.25 trillion that SpaceX valued itself at in February. The company was also last valued at US$1.53 trillion on secondary trading platform Forge Global. SpaceX is aiming to launch a roadshow on June 4, with the stock scheduled to debut on the Nasdaq on June 12. Morningstar said the stock could ascend in the near term, given the low float and the strong cadre of major investment banks underwriting the IPO.

This research firm says SpaceX is worth less than half its IPO target
Asia-Pacific
Channel NewsAsia

South Korea ruling party sweeps most seats in local elections but faces losing Seoul

The loss of Seoul would deliver a symbolic blow to South Korean President Lee Jae Myung despite his party’s broader gains. Election officials carrying the ballots for local elections arrive at a counting center in Seoul, South Korea, on Jun 3, 2026. (File photo: Reuters/Kim Hong-Ji) SEOUL: South Korean President Lee Jae Myung's ruling Democratic Party swept the majority of seats in local elections, early vote counts showed on Thursday (Jun 4), but looked set to lose the crucial Seoul mayoralty amid a controversy over a shortage of ballot papers. Opposition People Power Party (PPP) incumbent Mayor Oh Se-hoon was projected to clinch a narrow victory in the capital, leading Democratic Party challenger Chong Won-o by a razor-thin margin as of 8am local time (7am, Singapore time). National Election Commission (NEC) tallies at the same time showed Democratic Party candidates winning Busan and leading in 12 of 16 mayoral and provincial contests nationwide, though counting was still underway in some regions. The loss of Seoul, South Korea’s largest city and top political prize, would deliver a symbolic blow to Lee despite his party’s broader gains, complicating what had been expected to be a sweeping endorsement of his first year in office. CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less Analysts said control of the capital carries outsized political weight, and the result could temper the ruling party’s claim of a decisive national mandate even if it secures a majority of local governments. Even so, the Democratic Party’s overall performance suggests Lee retains significant nationwide support, buoyed by robust export growth due to an AI chip boom and an accompanying stock market rally that has helped underpin strong approval ratings. The vote was marred by disruption in parts of Seoul, where ballot papers ran out at multiple polling stations amid higher-than-expected turnout. The shortages, reported at more than a dozen polling stations, forced some voters to wait hours or leave without casting ballots, with voting extended at affected sites. The incident triggered protests by some voters and conservative groups, with PPP figures - before it became clear they were on track to retain the Seoul mayoralty - gathering outside the NEC to call for a halt to vote counting and a rerun of the race, arguing it had been “tainted”. The NEC apologised and said it would conduct a full investigation, but said the incidents did not constitute grounds for delaying the election or holding a rerun.

South Korea ruling party sweeps most seats in local elections but faces losing Seoul
Asia-Pacific
The Straits Times

Broadcom shares tumble after its AI chip forecast disappoints investors

SAN FRANCISCO - AI chipmaker Broadcom missed Wall Street expectations for second-quarter revenue on June 3 and its top executive left a previous 2027 sales forecast unchanged, sending its shares down nearly 13 per cent in extended trading. Second-quarter revenue of US$22.19 billion (S$28.5 billion) missed estimates of US$22.27 billion, as Broadcom races with Nvidia whose dominant graphics processing units remain the industry standard for artificial intelligence workloads. Broadcom also said it expects AI chip revenue of US$16 billion in its current third quarter, slightly below estimates of US$16.36 billion, according to analysts polled by Visible Alpha. Chief executive officer Tan Hock Eng said Broadcom now expects to ship more than 10 gigawatts’ worth of AI chips in 2027 - a slight increase from previous estimates - but stuck to the company’s long-range forecast of US$100 billion in sales from those chips. “Nothing slows down what was estimated prior - they just didn’t raise it,” Ben Bajarin, CEO of technology consultancy Creative Strategies, said of the long-range forecast. Rivals such as Marvell Technology are also making inroads with key hyperscale customers. At the end of May, Marvell said its custom chip business would surpass US$10 billion in revenue in 2029, and forecast second-quarter revenue above estimates. The boom in inference - the process by which models respond to user queries - has made custom chips crucial to the industry, driving more orders for advanced processors and intensifying competition. Broadcom’s ability to meet AI demand has also been tested by a strained supply chain. But company executives on the post-earnings call assuaged such concerns, saying Broadcom is “very comfortable” that it has secured supply for 2026 and 2027. “Today’s miss on revenue and subsequent post-market pull back (in shares) shows the market demands perfection for this chip rally to keep running,” said Ryan Lee, senior vice president of product and strategy at Direxion. Still, Broadcom has been one of the biggest beneficiaries of the AI race. Analysts view its core business as robust due to its lead position in the custom chip market with Meta and Alphabet’s Google as its hyperscale customers. Big Tech firms are expected to spend more than US$700 billion on AI infrastructure in 2026, up from around US$400 billion in 2025. As the AI industry evolves rapidly, machine learning capabilities and requirements vary greatly from company to company, resulting in large cloud companies building their own processors to slash costs and personalize workloads. Broadcom plans to ship 10 gigawatts worth of compute capacity next year and plans “a lot more” in 2028, Tan said during the earnings call. “Q2 semiconductor revenue from AI of US$10.8 billion grew 143 per cent year-over-year, above our forecast, driven by increasing demand for custom AI accelerators and AI networking,” he said in a statement. REUTERS

Broadcom shares tumble after its AI chip forecast disappoints investors
Europe
BBC Business

SpaceX says its worth $1.75tn as it nears stock market debut

Elon Musk's SpaceX has said it is even more valuable than anticipated as it approaches a public stock listing set for next week. In an filing with the US Securities and Exchange Commission detailing its plans for an initial public offering (IPO), SpaceX said its shares should go for $135 (£100) each, ratcheting up its own valuation of the firm to roughly $1.75tn. Setting an estimated price for its stock listing so far in advance is a rare move, and the amount represents a large increase in SpaceX's previous valuation of $1.25tn earlier this year. The revelation does not mean its shares will sell for the proposed price, as it will ultimately be decided by buyers. The price could go up or down. SpaceX, which builds space exploration rockets and infrastructure but also owns xAI and Starlink, revealing its estimated share price more than a week before its public debut is unusual. Companies typically only share an estimated sell price the day before they begin trading on the open market. SpaceX is expected to start trading on the Nasdaq stock index on 12 June, making its price estimate one of, if not the earliest price estimates, in stock market history. The company is aiming to raise $75bn, the most ever for an IPO. Should the company's shares sell at or above the expected $135 price, it will immediately become one of the most valuable companies in the world. And Musk, who controls more than 80% of SpaceX with his own stock holdings in the firm, could become a trillionaire. According to data from Dealogic, which conducts research on the capital markets, almost half of companies that have gone public in the last 30 years have seen their value decrease compared to when they listed. "There is no doubt the valuation is incredibly rich," Samuel Kerr, head of equity capital markets research at Mergermarket, said. He noted that SpaceX was pricing itself compared to its sales at a ratio that is higher than any other major company included in what investors refer to as the "Mag 7" - Alphabet, Amazon, Apple, Meta, Nvidia, Microsoft and Tesla, another of Musk's companies.

SpaceX says its worth $1.75tn as it nears stock market debut
Europe
BBC Business

'It is by the grace of God that you find a diamond'

The rising popularity of lab-grown diamonds has caused a big fall in the price of the mined gems. In the West African nation of Sierra Leone the country's biggest diamond mine has closed. Stripped to the waist, men toil in the heat of the sun. The mud in the pit is sifted and shovelled. Daniel, the foreman in this remote, informal, small-scale mine in Kono, the diamond region of Sierra Leone, shows me the gravel he's picking through with his fingers. "We put it in water and we wash it," he says. "If there is anything like a diamond or any bright stone, we can see it." Daniel and five others are searching for just tiny fragments, but pickings are thin. "I have not made a lot of money yet," he says. "Sometimes for the whole of the year you can't get anything. "It is by the grace of God that you find a diamond. We are just dreaming, really. We still have that hope." Such informal mining has increased in Kono following the closure last year of the country's biggest diamond mine Koidu Holdings. It shut with the loss of 1,000 jobs after a bitter industrial dispute over the miners' pay. Officially the company says it closed due to the cost of the dispute and security concerns, but privately, insiders also acknowledge that the weakness of the global market also played a role. In just the past four years, the retail price of polished natural diamonds has fallen some 40%. The main driver has been the rapid growth of the so-called lab-grown diamond industry. These factory-made diamonds, produced from crystalised carbon, are chemically and physically identical to mined diamonds. Manufactured mostly in India and China using two different technologies – HPHT (high pressure high temperature) and CVD (chemical vapour deposition) – they cost a fraction of the price, up to 70% less. Kono's governor, Augustine Shekho, says the big fall in the global price of natural diamonds has hit the region hard over the past five years. "Lower diamond values have reduced earnings for miners, constrained investment, and weakened local economic activity."

'It is by the grace of God that you find a diamond'
North America
CNBC Economy

U.S. proposes fresh tariffs on 60 economies over forced labor trade practices

The Office of the U.S. Trade Representative has proposed additional tariffs of up to 12.5% on imports from 60 economies over their failure to ban goods made with forced labor, in a sweeping action that would hurt most trading partners, including China, the European Union and Japan. The determination, made under Section 301 of the Trade Act of 1974, found that all 60 countries have failed to impose or effectively enforce a prohibition on forced labor-related imports, creating what it called an "unlevel playing field" for American workers. USTR has proposed a 10% duty rate for economies that have adopted a full or partial prohibition on forced labor trade, and 12.5% for all other economies. The trade authority also proposed a separate textile mechanism that would allow for a certain volume of apparel and textile imports from some economies to enter the U.S. at reduced rates. Written comments for the proposal are due by July 6, with public hearings scheduled on July 7, according to the notice. "The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field," said U.S. Trade Representative Jamieson Greer. "We will no longer tolerate this disparity." The proposal comes after the U.S. Supreme Court struck down most of President Donald Trump's "Liberation Day" tariffs earlier this year, prompting him to to impose 10% global baseline duties under Section 122 — which are also set to expire in July. The Section 301 authorizes the president to impose levies to counter unfair foreign trade practices harming U.S. commerce. An EU spokesperson described the reasoning behind the latest barrage of U.S. tariffs as "unjustified." "On the EU side, we are on track to ensure implementation of our Joint Statement tariff commitments by the end of June," they added in comments reported by Reuters. While the Supreme Court setback helped slow down the tariff timeline, it has not "de-fanged" the president's agenda, said Nick Marro, principal at Economist Intelligence Unit, who expects the Trump administration to unleash further investigations and tariff announcements in preparation for renewed rounds of trade talks. The impact of proposed tariffs will, however, likely be softened by significant exemptions on goods including electronics and artificial intelligence-related products, Marro added. While the tariff rates under Section 301 may be further adjusted, any meaningful changes will reshape global supply chains by creating different economic incentives for firms, said Deborah Elms, head of trade policy at the Hinrich Foundation.

U.S. proposes fresh tariffs on 60 economies over forced labor trade practices
Asia-Pacific
The Straits Times

SpaceX sets $173 price for blockbuster IPO, upending Wall Street convention

SpaceX is aiming to raise US$75 billion, the most ever for an IPO, in a deal that would value it at US$1.75 trillion. NEW YORK - SpaceX publicly set a US$135 (S$173) price for shares in its initial public offering on June 3, upending the longstanding Wall Street price-discovery apparatus and underscoring Elon Musk’s determination to raise record sums his way. The company’s decision to publish a price a week ahead of its landmark offering has few if any precedents among major US IPOs, and reflects Musk’s standing in the financial world as an adventurer with a golden touch – even as the capital raise will value SpaceX at very lofty multiples. SpaceX’s amended IPO filing confirms a Reuters report on the US$135 price from earlier this week. The company is aiming to raise US$75 billion, the most ever for an IPO, in a deal that would value it at US$1.75 trillion, immediately placing it among the top 10 most valuable US-listed firms. The company will kick off an investor roadshow on June 4, with pricing expected on June 11; trading in shares will begin on the Nasdaq the next day. Musk has rewritten the IPO playbook for SpaceX in many other ways, from planning to give retail investors a larger role in allocations to pushing for early index inclusion, and structuring governance to preserve strong founder control. “Nothing about this IPO is normal in any course or sense, but then again this is the largest IPO in history so maybe that is not surprising,” said an investor who is planning on buying into the IPO. On Wall Street, there has been a rush to get a piece of the deal, given Musk’s reputation and his control of an offering that stands to generate millions of dollars in fees – despite concern about the sky-high valuations that SpaceX will garner. The prospective investor said there has been a sense that major firms are “posturing” by saying “we put the money in early” – a position that both reflects and reaffirms Musk’s leverage over investors. SpaceX lacks a clear public market benchmark, given the paucity of public space companies and the company’s interests across aerospace, telecom and defence. The company posted a net loss of US$4.94 billion in 2025, even as revenue rose 33 per cent to US$18.67 billion. “On the face of it, a ~90x+ revenue multiple is high by any standard, particularly when compared to traditional aerospace or telecom peers,” said Tim Hatt, head of research and consulting at GSMA Intelligence, the research arm of global telecoms industry body GSMA. “But then again, SpaceX is not traditional in any way and there are no true public comparables.”

SpaceX sets $173 price for blockbuster IPO, upending Wall Street convention
North America
CNBC

Macy's posts strongest Q1 growth in four years, raises guidance despite consumer worries

Macy's posted its strongest fiscal first-quarter comparable sales performance in four years on Wednesday, as the legacy department store's turnaround continues to show progress. Led by the 200 so-called reimagined stores Macy's has upgraded, comparable sales grew 3% overall during the quarter and 1.6% at its namesake banner. At Bloomingdale's, comparable sales grew 10.2%, helped by an array of buzzy brands, a "fun factor" unique in the luxury landscape and the recent bankruptcy of rival Saks Fifth Avenue, CEO Tony Spring told CNBC in an interview. "Is the disruption in the marketplace helpful to us? Sure," he said. "Is it the primary reason we're growing? No." Spring said better-than-expected sales and profitability led the company to raise its full fiscal-year guidance after previously taking a cautious outlook. It's now expecting 2026 net sales to be between $21.5 billion and $21.75 billion, largely ahead of expectations of $21.59 billion, according to LSEG. It anticipates adjusted earnings per share will be between $2 and $2.20, up from a previous range of between $1.90 and $2.10 and well ahead of expectations of $2.07 at the middle and high end, according to LSEG. It now expects comparable sales to climb between 0.5% and 1.2% for the year, versus a previous outlook of a 0.5% drop to a 0.5% increase. Many retailers have reported strong growth during their fiscal first quarters in recent weeks due in part to higher-than-usual tax refunds. Some companies issued more cautious guidance for the current quarter over concerns less stimulus in the economy could lead to slower demand, especially as shoppers pay more for gas due to the war in the Middle East. Spring said tax refunds "definitely" helped during the first quarter, but weren't the only reason why Macy's grew. Crucially, the same trends the company saw during the first quarter have so far continued into the second, he said. "We did raise our guidance in both sales and profit for the remainder of the year to reflect the business trends that we're seeing as we start the second quarter, so pleased with the second quarter to date and the breadth of the categories that are performing," said Spring. "Don't see any significant change in the consumer approach to our categories and our business across all three of our name plates." He said the steady consumer behavior led Macy's to hike its outlook "despite the macroeconomic and geopolitical uncertainty." The company's reported net income for the three-month period that ended May 2 was $63 million, or 23 cents per share, compared with $38 million, or 13 cents per share, a year earlier. Adjusting for restructuring costs and other one-time charges, Macy's posted earnings per share of 13 cents.

Macy's posts strongest Q1 growth in four years, raises guidance despite consumer worries
North America
CNBC

As Honeywell Aerospace readies for its standalone debut, its CEO is forecasting big growth

"We have a purpose-built management team just solely focused on one strategy, one mission as opposed to disparate missions of a conglomerate," Currier told CNBC at his company's investor day. When it's officially spun off from its parent company later this month, Honeywell Aerospace will be aggressively pushing its advantages in avionics, engine control systems and a host of technologies from the nose to tail of commercial airplanes, business jets and military aircraft. As a standalone company, Honeywell Aerospace expects to generate full-year 2026 adjusted earnings before interest and taxes of $4.65 billion to $4.75 billion with free cash flow in the second half of the year of between $1 billion and $1.5 billion. By 2030 Honeywell is targeting annual earnings of at least $6.5 billion and full-year free cash flow of at least $4 billion. "The greatest growth for us is occurring in the commercial transport market and in defense and space," Currier said Wednesday. "We have opportunities where we are well positioned in our products and technologies." As a part of Honeywell International over the last several decades, the aerospace division became one of the largest manufacturers and suppliers in the commercial and business aviation markets as well as in the defense industry. From flight management systems in the cockpit to engine controls under the wing to the auxiliary power unit in the tail, its technology and components are in thousands of planes. Last year the business generated profits topping $4.2 billion with margins of 24.5%. Those results failed to impress investors, however, because they were clouded by the overall results of Honeywell, a conglomerate struggling to generate the stock returns enjoyed by the market and competing companies in the last several years. Since June 2023, Honeywell shares have gained about 20%, compared to the S&P 500's roughly 77% gains. That underperformance is a primary reason Honeywell decided in 2024 to eventually break up operations into three separate companies: Solstice Advanced Materials, Honeywell Technologies and Honeywell Aerospace. "Essentially, on the other side of the separation ... each business is positioned so well for the market it serves," Honeywell CEO Vimal Kapur told CNBC last month.

As Honeywell Aerospace readies for its standalone debut, its CEO is forecasting big growth