00:00It's a gigantic company. I guess no one's really worried about $15 billion in borrowing.
00:05And at the same time, they're tapping the Swiss market and the sterling market.
00:08In fact, they're looking to sell a really rare 100-year sterling bond as well.
00:12So Alphabet is out there across every type of part of the debt market.
00:17Alphabet and Finian, the chipmaker in Germany, just tapped the mold market very successfully over in Europe as well.
00:22You've just got hot on the heels of Oracle having sold $25 billion of debt at the beginning of last week.
00:28They've got $129 billion of demand, a record set.
00:33You might be bracing for $400 billion of investment-grade debt coming to finance AI.
00:39That's what JP Morgan thinks we're going to be getting.
00:41Thus far, the pricing is enough to tempt people in.
00:44And everyone's saying that Bloomberg and Jen engines are saying Google or Alphabet, the parent company, has a rock-solid AA credit rating.
00:51It is best-in-class in terms of its overall balance sheet.
00:55You don't need to worry here.
00:56The idea of a 100-year bond for one of these hyperscalers is crazy to me because we don't even know what the next three years is going to look like, let alone 100 years.
01:05Maybe it's safe for Google to be doing this, for Alphabet to be doing this because of its cash and its balance sheet.
01:10But for the likes of Oracle, for these companies that are starting to go through some real cash burn, how are they still staying afloat?
01:16How are investors not completely revolting against them right now as they had been to end the last year?
01:21I guess they pay enough.
01:23So it's enough that there is just this wall of demand that in the debt markets – yes, people have been talking about equity.
01:28Everyone's been demanding so much for Oracle, Amazon, Alphabet, all of the hyperscalers and cloud providers' equity.
01:34But the debt markets only get to tap in on these new issuances every year or so.
01:38Infineon's coming for the first time in a year.
01:40No wonder everyone wants to have a wall of opportunity to be buying in this AI trade across the capital structure.
01:45And for now, it seems as though the price point, even though BI is saying, if you're looking at Alphabet, for example,
01:50they think you could maybe see the bond market, the yields come in about 40 basis points.
01:54But they're pricing them pretty on the nose for Alphabet.
01:57They obviously clearly have got a syndicate issuance vibe from their banks that the demand is there.
02:03They don't have to suddenly go way over treasuries.
02:06You're looking at about 125 basis points at the longer end.
02:08But as the year progresses, maybe you start to see these companies have to pay up more.
02:13Maybe you see pressure on the issuance of older bonds.
02:16Remember, Oracle was actually taken to task by some of its bondholders.
02:19They were sued by saying, look, when you first tapped for $18 billion at the end of last year,
02:24you never made clear you were going to be coming time and time again.
02:26We didn't realize you were going to be financing this much in AI infrastructure.
02:29And they got a suing tap on their wrist, whether or not who wins out on that particular fight.
02:34But clearly, Oracle then, when they issued last week, really were very clear on,
02:38this is how we see our year going.
02:40This is the only time we're going to be tapping this year.
02:42And overall, you're starting to see companies having to be really transparent about the amount.
02:46No, I mean, they kitchen synced it.
02:48It was a mic drop last week.
02:49$200 billion is how much Amazon's going to be spending.
02:53$185 billion is what Alphabet's going to be spending.
02:55They're being very clear with investors how much they need to get.
02:57I mean, and Oracle got off another $25 billion last week with $200 billion of demand.
03:04So, like, they could shoot somebody in Fifth Avenue and they would still be able to sell these bonds.
03:08I want to ask about Apple, the new iPhone 17e apparently coming on.
03:13I read Mark Gurman's reporting last night.
03:15So, what do we know about the new product offerings?
03:17Imminent.
03:18Yes, you're going to get the magnetic pick on the back to be able to help your charging.
03:21Yes, you're going to be getting the A19 chip inside.
03:23And you'll be getting some better chips that they make internally for wireless connectivity.
03:28But more broadly, it's kind of like the 16e, but a little bit of an upgrade.
03:32And the idea that they know that demand is there, they're really going to be going for the emerging markets.
03:37They're really going to be going for corporate buyers in this particular phone.
03:40The E is the cheaper phone.
03:41E is the cheaper.
03:41But basically, the marketing is, it's got everything inside.
03:44Look, I've got a 16e.
03:45Because when I walked into Apple, they were like, well, if you're not, like, a photographic genius, this is exactly all you need.
03:52You're still going to be able to use Apple intelligence as and when it gets to us.
03:55And you're going to be able to have all of the memory that you currently need.
03:57So a lot of people are liking these slightly cheaper, really high-end phones.
04:02And remember, Samsung is just really going for the top end of the market at the moment.
04:05We haven't seen that much of an upgrade, which we're likely to get from Google Pixel.
04:09Their phone isn't going to have many bills and whistles being built on.
04:13So they're kind of in a league of their own at the moment.
04:14Apple can just keep on cashing in on this demand for their latest phones.
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