Key facts
- Elon Musk proposed merging Tesla and SpaceX, potentially creating a $3.5 trillion company.
- NextDC shares fell nearly 50% after cutting revenue forecasts and halting developments.
- Elice Group shares surged 30% after a weak market debut.
- Brent crude rose to $110.41 per barrel amid Middle East supply concerns.
- Bank Indonesia moved its interest rate policy announcement forward by 30 minutes.
Elon Musk, the industrialist behind Tesla and SpaceX, suggested on Tuesday that a merger of the two companies would be a good idea, forming special committees to discuss the union. Such a tie-up could create one of the world's most valuable companies, estimated at around $3.5 trillion. However, regulatory hurdles are anticipated, particularly concerning the reported slowdown of a military-grade Starlink service to Ukraine. In other news, Australian data center operator NextDC saw its value nearly halve after significantly reducing its revenue forecasts and pausing future developments, reflecting a negative sentiment in global AI stocks. Conversely, South Korean AI infrastructure firm Elice Group's shares surged 30% on Wednesday, recovering from a weak debut. Asian markets were generally stable, with MSCI's Asia-Pacific index up 1.2%, the KOSPI reaching a one-week high, and the Nikkei 225 gaining 1.3%. S&P 500 e-mini futures also showed a modest increase. Brent crude climbed 1.5% to $110.41 a barrel due to Middle East supply concerns and Red Sea shipping risks. European futures indicated a positive open. Bank Indonesia is set to announce its interest rate policy, with the announcement moved forward by 30 minutes.