[music] [music] Good morning and welcome to Opening Bid. I'm Yahoo [music] Finance executive editor Brian Sazi and I'm joining you live from Apollo Global Management Headquarters in the heart of New York City. Paulo is the parent company of [music] Yahoo Finance, but it's also one of the largest private equity firms in the world [music] and a major player in the retirement market. All day, I'll be taking you behind the scenes of this financial powerhouse, showing you how a [music] top Wall Street firm like ...

Strategic Partnership with Apollo Funds - Capital Power and Apollo Funds are forming a US$3 billion investment partnership to acquire U S natural gas generation assets[1,6,7] - Apollo Funds may commit up to US$225 billion in equity and Capital Power up to US$750 million[8] - Capital Power will operate acquired assets and receive management and performance fees[8] - The partnership aims for a 50% cumulative increase in U S capacity or approximately 35 GW[7] Financial Targets and Guidance - The company targets a 13-15% annual Total Shareholder Return (TSR)[7] - The company targets an 8-10% annual AFFO per-share growth[7] - The company aims to maintain a 2-4% annual dividend growth target[7] - 2026 Adjusted EBITDA is projected to be between $1565 million and $1765 million[18] - 2026 AFFO is projected to be between $890 million and $1010 million[18] - 2026 Sustaining Capital is projected to be between $290 million and $330 million[18] Powering AI in Alberta - Capital Power has a binding MOU with a data center developer for a 250 MW Electricity Supply Agreement (ESA) in Alberta[7,9] - The ESA has a term of 10+ years and is expected to start in 2028[9]

Core Insights - The S&P 500's quarterly rebalancing on December 22 includes Carvana, marking a significant and unexpected recovery for the company [1][5] - Carvana's inclusion in the index is notable given its near-collapse in 2022, highlighting a remarkable turnaround in its business performance [2][10] - Following the announcement, Carvana's stock surged nearly 10% in after-hours trading, contributing to a 97% year-to-date gain and nearly 30% increase in the past month [3][4] Company Performance - Carvana is experiencing record profits and significant unit expansion, positioning itself for continued growth [3][10] - The addition of Carvana to the S&P 500 indicates that it has reached a scale that attracts institutional investment, enhancing its market visibility and trading volume [9][10] Index Changes - Alongside Carvana, several companies are being removed from the S&P 500, including CRH plc, Comfort Systems USA, LKQ Corp., Solstice Advanced Materials, and Mohawk Industries [6][8] - The reshuffling of the index reflects ongoing changes in market dynamics and company performances [5][6]

But our next guest says based on the data the Fed should not cut rates next week. Torson SLock is the chief economist over Apollo Global Management. Torston, thanks for being with us right now.Take us through the case as to why the Fed needs to hold steady. >> Well, if you look at the incoming data, for example, we had a lot of discussions here now about a month ago of course of Triricolor and First Brands and whether the credit cycle was about to get worse. But if you look at the actual numbers for default ...

The bidding war for entertainment giant Warner Bros. Discovery (NASDAQ:WBD) could be entering the home stretch. The Dec. 1 deadline for second-round binding offers arrived, and Netflix (NASDAQ:NFLX) has emerged as the leader on the strength of a sweetened, mostly cash proposal and a strong relationship between the company CEOs. Rivals including Paramount Skydance (NASDAQ:PSKY) and Comcast (NASDAQ:CMCSA) also submitted bids, but each has different goals. Where Paramount targets acquiring the entire company, ...

Industry Trends - Private equity is entering a phase exposing firms that benefited from ultra-low interest rates [1] - Some firms "truly delivered" while others simply benefited from a long period of ultra-low interest rates [1] Key Players - Apollo Global Management's David Sambur commented on the private equity phase [1]

Core Viewpoint - There is significant debate regarding whether the current AI investment landscape is experiencing a bubble, with contrasting opinions from various analysts and investment strategists [2][3][7]. Group 1: Market Sentiment and Analysis - The Global X Artificial Intelligence & Technology ETF (AIQ) has seen a loss of $2.4 trillion in value since October 29, indicating market volatility [1]. - According to the November 2025 Bank of America Global Fund Manager Survey, 45% of respondents view an AI equity bubble as a major market risk, with over half believing AI stocks are already in bubble territory [2]. - Analysts are divided on whether current AI investments resemble the dot-com bubble, with some arguing that today's AI investments are fundamentally different due to profitability and capital allocation [3][4]. Group 2: Perspectives on AI Investments - Carolyn Barnette from BlackRock argues that today's AI investments are supported by real profitability and disciplined capital allocation, contrasting with the speculative nature of the dot-com era [4][5]. - Barnette emphasizes that AI capital investments are primarily funded by earnings and cash rather than debt, making the sector more resilient to economic fluctuations [6]. - Conversely, Torsten Sløk from Apollo Global Management believes the current AI sector is overvalued compared to the 1990s tech bubble, attributing this to a prolonged period of low interest rates [7][8]. Group 3: Investment Strategies - Investors are advised to focus on AI adopters rather than creators, as companies that adopt AI technology may present significant investment opportunities [11][12]. - It is recommended that investors periodically reassess their portfolios to ensure alignment with their financial goals and risk tolerance [13]. - UBS suggests diversifying portfolios with international exposure, high-grade bonds, and gold to mitigate risks associated with potential AI bubbles [14][15].

Core Insights - Multiple companies, including Paramount Skydance Corp., Comcast Corp., and Netflix Inc., are considering offers for Warner Bros. Discovery Inc., each aiming to differentiate their proposals and avoid overpaying for the assets [1] - Warner Bros. is evaluating strategic options after receiving interest from various suitors, with the first round of bids expected soon [2] - The potential sale could lead to further instability for Warner Bros., which is on its fourth owner in seven years, following a series of acquisitions and mergers [3] Company Performance - Warner Bros. has faced challenges under current leadership due to the shift from traditional TV to streaming, but its stock has nearly tripled in the past two months, resulting in a market value of $57 billion and approximately $33.5 billion in debt [4] Acquisition Interests - Paramount, led by David Ellison, has made multiple offers for Warner Bros., with the highest reaching $23.50 per share, although all offers have been rejected [5] - Ellison views the acquisition as a means to enhance Paramount's business, aiming to integrate Warner Bros.' film and TV library into Paramount+ and increase the combined output to 30 films per year [6] Financial Backing - David Ellison's father, Larry Ellison, has financially supported his son's $8 billion acquisition of Paramount and has been in discussions with Apollo Global Management and various Middle Eastern sovereign wealth funds [7]

RT Bloomberg New Economy (@BBGNewEconomy)@apolloglobal "Technology change is going to cause massive dislocation in the credit market."CEO @apolloglobal Marc Rowan on the impact new technology will have on financial markets and businesses.⏯️ https://t.co/Sqkf8dJOyf https://t.co/EUWJCS3Tyq ...

Market Share & Financial Markets - The US represents 60% of the world's capital market [1] Industry Focus - Growing demand for energy is a key factor [1] Key Players - Apollo Global's CEO Marc Rowan discusses financial markets [1]