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SpaceX Scrubs Starship Launch, Chipmakers Suffer Steep Losses | The Opening Trade 7/17/2026

Watch on YouTube ↗  |  July 17, 2026 at 11:17  |  1:36:11  |  Bloomberg Markets
Speakers
Michael Metcalfe — Head of Macro Strategy, State Street Global Markets
Mark Cudmore — Executive Editor, Bloomberg Live / Macro Strategist
Beata Manthey — Head of European Equity Strategy, Citi
Matt Bloxham — Head of Research, The Block
Stephen Pinsky — Bloomberg Asia Energy Reporter
Sonali Ponnani — UK Economist, Bank of America

Summary

Markets fell sharply as a semiconductor sell-off continued and oil prices surged on escalating US-Iran conflict. Hosts and guests discussed the implications of AI CapEx sustainability, geopolitical tensions, UK political transition, and company earnings. Key calls included a rotation into tech hardware/software, caution on AI bubbles, and a preference for European banks and Japanese equities.

  • Global equities decline, led by heavy semiconductor losses and a 12% weekly oil price jump.
  • Middle East conflict intensifies with sixth night of US-Iran strikes and collapsing Hormuz traffic.
  • UK Labour Party confirms Andy Burnham as leader; he signals North Sea drilling and public control of Thames Water.
  • Burberry reports sales growth but misses estimates; strong US demand offset by Middle East and European weakness.
  • SpaceX Starship launch scrubbed, sending shares below IPO; analysts warn of delayed momentum for the space business.
  • Citi strategist Beata Mante sees a 6-12 month rally in global equities, overweight European banks, and prefers Japan over UK.
  • State Street’s Michael Metcalf observes a rotational flow from semiconductors into tech hardware and software.
  • Bloomberg’s Mark Cudmore warns the AI CapEx bubble is in its late stage and will end painfully for chip stocks when hyperscalers cut spending.
Ideas
Michael Metcalfe Head of Macro Strategy, State Street Global Markets 17:39
Rotation into tech hardware and software
Investors are currently rotating out of semiconductors and into technology hardware and software, which he interprets as a healthy rebalancing within the tech sector rather than an outright exit. This flow suggests near-term upside in hardware and software names as the semis unwind continues.
IGV MED
Matt Bloxham Head of Research, The Block 36:42
SpaceX launch delay stalls stock momentum
The scrubbed Starship launch removes a key positive catalyst for SpaceX. Starship is central to the orbital data-center and moon/Mars investment case, and delays push out the momentum. Without new positive drivers, the share price is likely to stay under pressure and remain below its $135 IPO price.
SPCX MED
Mark Cudmore Executive Editor, Bloomberg Live / Macro Strategist 39:04
AI CapEx bubble will burst, hurting semis
The equity rally in AI and semiconductors is driven by a massive CapEx bubble that is still intact but approaching its end. When hyperscalers eventually cut spending plans, the AI trade will collapse, inflicting significant pain on chip and AI-related stocks. Falling token costs may be an early signal that fundamentals are starting to shift.
SMH MED
Beata Manthey Head of European Equity Strategy, Citi 57:21
Overweight European banks on strong upgrades
European banks are experiencing the strongest earnings upgrades, driven by the improving cyclical environment and broadening growth. The sector remains a high-conviction overweight as a well-underpinned buy trade that can perform independently of what happens in other tech themes.
FEUP HIGH
Beata Manthey Head of European Equity Strategy, Citi 57:57
Prefer Japan equities over UK equities
Japan has more cyclical drivers than the UK in a broadening environment, and they have swapped UK for Japan in their global portfolio. The UK’s heavy defensive weighting will cause it to underperform more cyclical regions, even though absolute UK performance may still be positive.
EWJ HIGH
Beata Manthey Head of European Equity Strategy, Citi 57:57
Prefer Japan equities over UK equities
Japan has more cyclical drivers than the UK in a broadening environment, and they have swapped UK for Japan in their global portfolio. The UK’s heavy defensive weighting will cause it to underperform more cyclical regions, even though absolute UK performance may still be positive.
FTSE HIGH
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This Bloomberg Markets video, published July 17, 2026, features Michael Metcalfe, Matt Bloxham, Mark Cudmore, Beata Manthey discussing IGV, SPCX, SMH, FEUP, EWJ, FTSE. 6 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Michael Metcalfe, Matt Bloxham, Mark Cudmore, Beata Manthey  · Tickers: IGV, SPCX, SMH, FEUP, EWJ, FTSE