1
00:00:02,600 --> 00:00:07,120
Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

2
00:00:10,000 --> 00:00:13,160
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

3
00:00:13,200 --> 00:00:14,920
Speaker 2: are the stories we're following today.

4
00:00:15,360 --> 00:00:15,880
Speaker 3: Thank Karen.

5
00:00:15,880 --> 00:00:18,480
Speaker 4: We begin with concerns over the impact that a Chinese

6
00:00:18,600 --> 00:00:22,560
Speaker 4: artificial intelligence startup could have on big US tech stocks.

7
00:00:22,600 --> 00:00:26,200
Speaker 4: It is called deep Seek. Buzz grew over the weekend

8
00:00:26,239 --> 00:00:30,080
Speaker 4: about deep Seek's latest AI model being cost effective while

9
00:00:30,160 --> 00:00:33,360
Speaker 4: running on less advanced chips. That's casting doubt on the

10
00:00:33,440 --> 00:00:37,360
Speaker 4: validity of the sky high valuations for companies like Nvidia.

11
00:00:37,680 --> 00:00:40,120
Speaker 4: We get more from Bloomberg Markets reporter Mark Cudmore.

12
00:00:40,960 --> 00:00:42,800
Speaker 5: I think this is probably a game changing moment because

13
00:00:42,800 --> 00:00:45,560
Speaker 5: I think suddenly the whole US stocks exceptionalism of the

14
00:00:45,640 --> 00:00:48,160
Speaker 5: last fourteen fifteen years is probably undermined by this because

15
00:00:48,159 --> 00:00:50,800
Speaker 5: it's simultaneously is good for productivity and growth from the

16
00:00:50,840 --> 00:00:52,280
Speaker 5: rest of the world, good for companies all over the

17
00:00:52,320 --> 00:00:55,600
Speaker 5: rest of the world, and undermines the whole US tech phenomenon.

18
00:00:55,640 --> 00:00:57,640
Speaker 5: So I think it hits from both sides. So I

19
00:00:57,680 --> 00:01:00,520
Speaker 5: think actually last Thursday we probably saw that the long

20
00:01:00,600 --> 00:01:02,920
Speaker 5: term peak in US shaff globle market cap.

21
00:01:03,160 --> 00:01:06,280
Speaker 4: Bloomberg's Mark Cudmore says the AI model from Deepseek is

22
00:01:06,319 --> 00:01:10,160
Speaker 4: widely seen as competitive with open ai and Meta's latest offerings.

23
00:01:10,760 --> 00:01:13,360
Speaker 2: Nathan Chinese, a startup, Deep Seek, is now top of

24
00:01:13,400 --> 00:01:17,160
Speaker 2: the iPhone download charts despite being hobbled by sanctions. Capital

25
00:01:17,200 --> 00:01:20,199
Speaker 2: dot Com senior market analyst Kyle Rada says it raises

26
00:01:20,319 --> 00:01:23,560
Speaker 2: questions about the market and narrative around US tech dominance.

27
00:01:23,880 --> 00:01:25,920
Speaker 6: If anyone's on a sort of group chat with equity

28
00:01:25,920 --> 00:01:29,160
Speaker 6: investors or any kind of equity strategist, phones are running

29
00:01:29,200 --> 00:01:32,399
Speaker 6: hot effectively talking about well, what is this product, how

30
00:01:32,520 --> 00:01:35,240
Speaker 6: they achieved these outcomes, and what does this mean for

31
00:01:35,280 --> 00:01:37,960
Speaker 6: the AI investment boom in the United States. It raises

32
00:01:38,000 --> 00:01:41,280
Speaker 6: concerns about overinvestment in artificial intelligence. It raises concerns but

33
00:01:41,319 --> 00:01:44,480
Speaker 6: perhaps the United States might have the competitive advantage.

34
00:01:43,959 --> 00:01:45,479
Speaker 7: That it has over the rest of the world.

35
00:01:45,680 --> 00:01:47,920
Speaker 6: It raises concerns that chip demand won't be as great

36
00:01:47,920 --> 00:01:51,120
Speaker 6: going forward, either in companies like in Video or overvalued.

37
00:01:50,720 --> 00:01:54,040
Speaker 2: Capital dot Com senior market analyst Kyle Rada several of

38
00:01:54,080 --> 00:01:56,640
Speaker 2: the big tech stocks falling on the news and Video

39
00:01:56,760 --> 00:01:59,760
Speaker 2: shares down ten percent. ISML is off by about eleven

40
00:02:00,000 --> 00:02:02,760
Speaker 2: per Meta and Microsoft are lower by well more than

41
00:02:02,800 --> 00:02:06,080
Speaker 2: four percent. Pall and teer down six percent, super Micro

42
00:02:06,160 --> 00:02:08,840
Speaker 2: and soundhounder off by at least nine percent.

43
00:02:08,680 --> 00:02:11,760
Speaker 4: And Karen This deepseek news comes just as investors brace

44
00:02:11,800 --> 00:02:14,680
Speaker 4: for a slew of earnings from the Magnificent Seven. Bloomberg's

45
00:02:14,720 --> 00:02:17,000
Speaker 4: John Tucker's following this end of the story in John

46
00:02:17,080 --> 00:02:19,440
Speaker 4: and feels like the news couldn't get any more dicey.

47
00:02:19,680 --> 00:02:23,000
Speaker 3: Well it could. The company sharers have been near record highs,

48
00:02:23,040 --> 00:02:25,920
Speaker 3: their valuations are stretched, Nathan and add to this the

49
00:02:25,919 --> 00:02:29,120
Speaker 3: fact that the group's profit growth It's projected to come

50
00:02:29,120 --> 00:02:31,440
Speaker 3: out at the slowest pace in almost two years of

51
00:02:31,480 --> 00:02:34,440
Speaker 3: Profits for the Seven Giants are projected to increase by

52
00:02:34,680 --> 00:02:37,600
Speaker 3: twenty two percent in the fourth quarter from a year earlier.

53
00:02:37,760 --> 00:02:40,480
Speaker 3: That actually would be the smallest jump since the first

54
00:02:40,560 --> 00:02:43,840
Speaker 3: quarter of twenty twenty three. The seven companies announcements they

55
00:02:43,840 --> 00:02:47,720
Speaker 3: start Wednesday. That's when Microsoft, Meta and Tesla are scheduled report.

56
00:02:47,960 --> 00:02:52,600
Speaker 3: Apple follows Thursday, while we get Alphabet and Amazon next week,

57
00:02:52,639 --> 00:02:55,919
Speaker 3: and then chip maker in Nvidia that comes late February.

58
00:02:56,240 --> 00:03:00,000
Speaker 3: Capex also going to be a big theme Microsoft, Alphabet, Amazon,

59
00:03:00,080 --> 00:03:02,040
Speaker 3: ad met It. They're all projected to have spent more

60
00:03:02,040 --> 00:03:06,440
Speaker 3: than two hundred billion dollars combined on capital expenditures in

61
00:03:06,480 --> 00:03:09,120
Speaker 3: their last fiscal year, and they've all pledged to spend

62
00:03:09,120 --> 00:03:11,320
Speaker 3: more in the current year. In New York, I'm John Tucker,

63
00:03:11,360 --> 00:03:12,200
Speaker 3: Bloomberg Radio.

64
00:03:12,480 --> 00:03:13,520
Speaker 7: All right, John, thank you.

65
00:03:13,600 --> 00:03:17,639
Speaker 2: Now, let's turn to the geopolitical dispute that's royal global markets.

66
00:03:17,680 --> 00:03:21,400
Speaker 2: In less than twelve hours, President Trump announced sweeping tariffs

67
00:03:21,400 --> 00:03:24,640
Speaker 2: on Columbia, then reverse this threat after reaching a deal

68
00:03:24,760 --> 00:03:28,519
Speaker 2: on the return of deported migrants. Columbia's President Gustavo Petro

69
00:03:28,680 --> 00:03:31,840
Speaker 2: initially refused to allow two military planes to land because

70
00:03:31,880 --> 00:03:35,080
Speaker 2: the migrants on board were in and shackles, but last

71
00:03:35,160 --> 00:03:37,640
Speaker 2: night the White House declared that Columbia had agreed to

72
00:03:37,720 --> 00:03:41,360
Speaker 2: all of President Trump's terms. Coleman Sachs economist Kevin Daley

73
00:03:41,440 --> 00:03:43,800
Speaker 2: says the tariff threat has not gone away.

74
00:03:44,240 --> 00:03:46,720
Speaker 8: The warfare is that a blank of tariff might be

75
00:03:46,920 --> 00:03:48,200
Speaker 8: introduced immediately.

76
00:03:49,480 --> 00:03:50,800
Speaker 7: We didn't have that.

77
00:03:51,000 --> 00:03:53,520
Speaker 8: And on the back of that, our US economists have

78
00:03:53,600 --> 00:03:56,720
Speaker 8: lowered the probabilities of some of the tariffs. But you know,

79
00:03:56,800 --> 00:03:59,040
Speaker 8: TARIFRESK clearly hasn't gone away, and it's going to be

80
00:03:59,120 --> 00:04:02,800
Speaker 8: with us for a while now.

81
00:04:03,200 --> 00:04:05,680
Speaker 2: And that's Goldman sax economist Kevin Daley, who says the

82
00:04:05,760 --> 00:04:07,920
Speaker 2: use of tariffs as a marketing tool is likely to

83
00:04:07,960 --> 00:04:10,720
Speaker 2: shadow emerging markets for much of the next four years.

84
00:04:10,960 --> 00:04:13,200
Speaker 4: Karen, big tech companies are getting a warning from Vice

85
00:04:13,200 --> 00:04:16,400
Speaker 4: President JD. Vance when it comes to content moderation on

86
00:04:16,440 --> 00:04:17,240
Speaker 4: their platforms.

87
00:04:17,600 --> 00:04:22,240
Speaker 9: We believe fundamentally that big tech does have too much power,

88
00:04:22,480 --> 00:04:24,120
Speaker 9: and there are two ways they can go about this.

89
00:04:24,279 --> 00:04:29,160
Speaker 9: They can either respect America's americans constitutional rights. They can

90
00:04:29,200 --> 00:04:32,160
Speaker 9: stop engaging in censorship, and if they don't, you can

91
00:04:32,200 --> 00:04:35,760
Speaker 9: be absolutely sure that Donald Trump's leadership is not going

92
00:04:35,839 --> 00:04:37,279
Speaker 9: to look too kindly on them.

93
00:04:37,440 --> 00:04:40,120
Speaker 4: Vice President Jade Vance appeared on CBS's Face the Nation

94
00:04:40,279 --> 00:04:43,279
Speaker 4: Heard Sundays on Bloomberg Radio. Tech CEOs have been making

95
00:04:43,320 --> 00:04:46,080
Speaker 4: pilgrimages to President Trump's Mar A Lago Club since his

96
00:04:46,120 --> 00:04:48,880
Speaker 4: win in November, and they donated millions to his inaugural fund.

97
00:04:48,920 --> 00:04:51,680
Speaker 4: Meta Platforms moved to end third party fact checking on

98
00:04:51,800 --> 00:04:54,320
Speaker 4: its platforms this month. That was a move the President

99
00:04:54,320 --> 00:04:55,600
Speaker 4: applauded well.

100
00:04:55,640 --> 00:04:58,040
Speaker 2: In Sports, Nathan, it could be history in the making.

101
00:04:58,120 --> 00:05:00,560
Speaker 2: The Chiefs are once again going to the Super Bowl.

102
00:05:00,640 --> 00:05:02,920
Speaker 2: Let's get the very latest of the Bloomberg Sports is

103
00:05:03,080 --> 00:05:05,800
Speaker 2: John stash Hour. John, Good morning, morning Karen.

104
00:05:05,800 --> 00:05:07,960
Speaker 10: There's never been a Super Bowl three peete. In fact,

105
00:05:07,960 --> 00:05:09,800
Speaker 10: there's never been a team win two in a row

106
00:05:10,000 --> 00:05:12,120
Speaker 10: and go back with a chance for three straight. But

107
00:05:12,200 --> 00:05:14,440
Speaker 10: in New Orleans in two weeks, Kansas City, we'll have

108
00:05:14,480 --> 00:05:17,359
Speaker 10: the opportunity in the AFC Championship game with Buffalo that

109
00:05:17,480 --> 00:05:19,760
Speaker 10: She's blue, an eleven point lead and trailed in the

110
00:05:19,760 --> 00:05:20,320
Speaker 10: fourth quarter.

111
00:05:21,000 --> 00:05:23,560
Speaker 11: First down play, Mahomes keeps it on an RPO at

112
00:05:23,560 --> 00:05:25,840
Speaker 11: the five. It's a lead plot pick use of the

113
00:05:25,960 --> 00:05:32,360
Speaker 11: uns on this hide touchdown Chilzas City, Patrick Mahomes a

114
00:05:32,440 --> 00:05:37,760
Speaker 11: sixteen yard run, his second rushing touchdown of the games.

115
00:05:37,839 --> 00:05:40,560
Speaker 10: Radio the call KC one thirty two to twenty nine,

116
00:05:40,560 --> 00:05:42,360
Speaker 10: and will now, like the Super Bowl two years ago,

117
00:05:42,480 --> 00:05:45,719
Speaker 10: take on Philadelphia. The Eagles won the NFC over Washington

118
00:05:45,800 --> 00:05:48,440
Speaker 10: fifty five to twenty three. I'll be back shortly with

119
00:05:48,560 --> 00:05:49,760
Speaker 10: more in sports karnon Nathan.

120
00:05:49,880 --> 00:05:51,000
Speaker 7: All right, John, thanks for that.

121
00:05:51,040 --> 00:05:53,360
Speaker 4: Now let's get to the latest on the wildfires in

122
00:05:53,400 --> 00:05:56,719
Speaker 4: Los Angeles. The ravaged region is finally getting its first

123
00:05:56,839 --> 00:06:00,760
Speaker 4: rainfall in months, but that's posing a new risk landslides.

124
00:06:00,920 --> 00:06:03,080
Speaker 4: Brett Pasqua is a battalion chief with cal Fire.

125
00:06:03,839 --> 00:06:06,320
Speaker 7: This rate right now is really good. It's going to

126
00:06:06,440 --> 00:06:09,240
Speaker 7: soak the ground for us. It's gonna you know, any hidden.

127
00:06:09,000 --> 00:06:11,120
Speaker 4: Howkspots that we're still out there tackling, it's going to

128
00:06:11,200 --> 00:06:11,680
Speaker 4: help with that.

129
00:06:12,120 --> 00:06:13,080
Speaker 7: It's when the rate.

130
00:06:12,960 --> 00:06:15,840
Speaker 12: Goes up and we start getting it really quickly that

131
00:06:15,920 --> 00:06:18,000
Speaker 12: you're going to see that mud.

132
00:06:17,720 --> 00:06:20,520
Speaker 7: Flows and that's what we don't want. CalFire Battalion Chief

133
00:06:20,560 --> 00:06:21,360
Speaker 7: Brett Pasqua.

134
00:06:21,440 --> 00:06:24,320
Speaker 4: Right now, floodwatch is in effect for Los Angeles County

135
00:06:24,320 --> 00:06:27,120
Speaker 4: and several roads are closed due to mud flows. The

136
00:06:27,160 --> 00:06:30,159
Speaker 4: Palisades Fire that's charred more than twenty three thousand acres

137
00:06:30,240 --> 00:06:33,120
Speaker 4: is now ninety percent contained, while the Eaton fire that

138
00:06:33,200 --> 00:06:36,839
Speaker 4: destroyed much of Altadena is ninety eight percent under control.

139
00:06:40,360 --> 00:06:41,720
Speaker 2: And it's time now for a look at some of

140
00:06:41,760 --> 00:06:44,240
Speaker 2: the other stories making news in New York and around

141
00:06:44,240 --> 00:06:46,839
Speaker 2: the world, and for that we're joined by Bloomberg's Michael Barr.

142
00:06:46,920 --> 00:06:48,640
Speaker 7: Michael, Good Morning, Good morning, Karen.

143
00:06:48,800 --> 00:06:52,359
Speaker 13: Israel is allowing Palestinians to return to the heavily destroyed

144
00:06:52,480 --> 00:06:55,599
Speaker 13: north of the Gaza Strip for the first time since

145
00:06:55,680 --> 00:06:58,719
Speaker 13: the early weeks of the fifteen month war with the

146
00:06:58,760 --> 00:07:04,080
Speaker 13: Moss and accordance with a fragile ceasefire, thousands of Palestinians

147
00:07:04,080 --> 00:07:06,840
Speaker 13: headed north to day after waiting for days to cross

148
00:07:07,000 --> 00:07:11,680
Speaker 13: in exchange. Two more Israeli hostages will be released this week. Meanwhile,

149
00:07:11,800 --> 00:07:15,520
Speaker 13: Israel and Lebanon have agreed to extend their ceasefire until

150
00:07:15,560 --> 00:07:19,800
Speaker 13: February eighteenth to allow Israeli troops more time to withdraw,

151
00:07:20,360 --> 00:07:23,440
Speaker 13: and Israeli Prime Minister Benjamin at and Yahoo released a

152
00:07:23,520 --> 00:07:27,760
Speaker 13: short message thanking President Trump. It comes after Trump ordered

153
00:07:27,760 --> 00:07:31,520
Speaker 13: the resumption of shipments of two thousand pound bombs to Israel.

154
00:07:31,800 --> 00:07:35,240
Speaker 14: Thank you, President Trump for keeping your promise to give

155
00:07:35,320 --> 00:07:38,360
Speaker 14: us the tools it needs to defend itself, to confine

156
00:07:38,400 --> 00:07:42,800
Speaker 14: our common enemies, and to secure future of peace and prosperity.

157
00:07:43,560 --> 00:07:46,679
Speaker 13: Former President Joe Biden had put the shipments on hold,

158
00:07:46,760 --> 00:07:50,480
Speaker 13: citing concerns about the use of the weapons in areas

159
00:07:50,480 --> 00:07:55,440
Speaker 13: with high concentrations of civilians. The UN General Assembly has

160
00:07:55,480 --> 00:08:00,880
Speaker 13: designated today as International Holocaust Remembrance Day. You Every twenty

161
00:08:00,920 --> 00:08:04,360
Speaker 13: seventh is the anniversary of the liberation of the Auschwitz

162
00:08:04,480 --> 00:08:08,680
Speaker 13: concentration camps. The day will honor the six million Jewish

163
00:08:08,800 --> 00:08:12,160
Speaker 13: victims of the Holocaust. It comes as law enforcement notes

164
00:08:12,200 --> 00:08:16,240
Speaker 13: a rise in anti Semitism around the world. Jocelyn Getchen

165
00:08:16,360 --> 00:08:19,680
Speaker 13: Kestenbaum is a professor of law at the Benjamin N.

166
00:08:19,840 --> 00:08:21,320
Speaker 13: Cardozos School of Law.

167
00:08:21,680 --> 00:08:25,640
Speaker 1: There are significant number of survivors who are no longer

168
00:08:25,720 --> 00:08:30,400
Speaker 1: with us, and therefore there is an increasing Holocaust denial.

169
00:08:30,480 --> 00:08:35,160
Speaker 1: It's something that we must counter, and eyewitness testimonials have

170
00:08:35,480 --> 00:08:39,000
Speaker 1: always been a powerful way to combat such denial.

171
00:08:39,679 --> 00:08:45,000
Speaker 13: Law Professor Joscelyn Gretchen casting Bomb. The first report on

172
00:08:45,320 --> 00:08:49,360
Speaker 13: last month's Jedu air crash in South Korea has confirmed

173
00:08:49,400 --> 00:08:53,320
Speaker 13: traces of bird strikes in the plane's engines. Officials, though

174
00:08:53,360 --> 00:08:56,240
Speaker 13: have not determined the cause of the accident that killed

175
00:08:56,240 --> 00:08:57,960
Speaker 13: all but two of the one hundred and eighty one

176
00:08:58,000 --> 00:09:01,000
Speaker 13: people on board. Global News tenty four hours a day

177
00:09:01,120 --> 00:09:03,520
Speaker 13: and whenever you want it with the Bloomberg News Now.

178
00:09:03,640 --> 00:09:06,359
Speaker 13: I'm Michael Barr, and this is Bloomberg Karen.

179
00:09:06,480 --> 00:09:13,480
Speaker 2: Ray, Michael Barr, thank you time now for the Bloomberg

180
00:09:13,559 --> 00:09:16,640
Speaker 2: Sports Update, brought to you by Tri State Audie, and

181
00:09:16,640 --> 00:09:18,120
Speaker 2: we welcome back John stash Hour.

182
00:09:18,200 --> 00:09:19,320
Speaker 7: Hi, John, Hey Karen.

183
00:09:19,360 --> 00:09:22,360
Speaker 10: Super Bowl fifty nine in New Orleans, same matchup as

184
00:09:22,360 --> 00:09:25,680
Speaker 10: the game two years ago, Kansas City against Philadelphia Conference

185
00:09:25,760 --> 00:09:28,880
Speaker 10: Championship Sunday began with the NFC in Philly, and here

186
00:09:29,000 --> 00:09:30,560
Speaker 10: was the Eagles first play.

187
00:09:31,480 --> 00:09:33,679
Speaker 7: It hurts under settling the first down.

188
00:09:33,760 --> 00:09:36,960
Speaker 15: He pitches it out to Barkley, takes off to the outside.

189
00:09:37,120 --> 00:09:40,160
Speaker 7: He's at the fifty, he's at the forty, he's.

190
00:09:40,000 --> 00:09:40,720
Speaker 11: At the thirty.

191
00:09:41,080 --> 00:09:48,640
Speaker 15: He's gonna down fifteen ten touchdown sake one. Barkley sixty

192
00:09:48,760 --> 00:09:53,720
Speaker 15: yards on his opening touch He touched it and he took.

193
00:09:53,559 --> 00:09:54,240
Speaker 13: It to the house.

194
00:09:54,520 --> 00:09:56,360
Speaker 7: It's a simples wip.

195
00:09:56,600 --> 00:09:59,160
Speaker 10: Barkley seventh touchdown run of the season that went at

196
00:09:59,240 --> 00:10:03,079
Speaker 10: least sixty extending his NFL record. The ex Giant, who

197
00:10:03,080 --> 00:10:05,960
Speaker 10: had scored two more touchdowns, Jalen Hurt, scored three times.

198
00:10:05,960 --> 00:10:10,000
Speaker 10: The Eagles overwhelmed Washington fifty five to twenty three. It's

199
00:10:10,000 --> 00:10:12,200
Speaker 10: the most points ever scored in a conference championship game.

200
00:10:12,200 --> 00:10:14,120
Speaker 10: Philadelphia went to that Super Bowl two years ago, but

201
00:10:14,160 --> 00:10:17,120
Speaker 10: finished last season going one in six. They started this

202
00:10:17,200 --> 00:10:20,240
Speaker 10: year just two and two. Since then, they are fifteen

203
00:10:20,280 --> 00:10:24,160
Speaker 10: and one. The Chiefs this season, with Patrick Mahomes playing quarterback,

204
00:10:24,440 --> 00:10:27,720
Speaker 10: are seventeen in one. Mahomes led KC pass Buffalo in

205
00:10:27,720 --> 00:10:30,800
Speaker 10: the AFC thirty two to twenty nine, which makes Kansas

206
00:10:30,840 --> 00:10:33,360
Speaker 10: City twelve and zero this season in games decided by

207
00:10:33,679 --> 00:10:36,040
Speaker 10: one score. They led Buffalo twenty one to ten, then

208
00:10:36,080 --> 00:10:39,120
Speaker 10: trailed by a point. A Mahomes TV run gave them

209
00:10:39,120 --> 00:10:41,160
Speaker 10: the lead back the Bills tight it scored with six

210
00:10:41,200 --> 00:10:43,720
Speaker 10: minutes to go. Chiefs went back ahead on a field goal,

211
00:10:44,000 --> 00:10:47,040
Speaker 10: more heartbreak for the Bills and their fans. Kansas City

212
00:10:47,080 --> 00:10:49,160
Speaker 10: has been made a slight favorite to win the Super Bowl,

213
00:10:49,360 --> 00:10:51,600
Speaker 10: and if they do win, they've become the first to

214
00:10:51,679 --> 00:10:54,880
Speaker 10: win three in a row. At the Garden, Rangers twice

215
00:10:54,960 --> 00:10:57,280
Speaker 10: came back to the two goal definsite, but Colorado scored

216
00:10:57,320 --> 00:11:00,559
Speaker 10: with fifteen seconds left as beat the Rangers five to four.

217
00:11:00,679 --> 00:11:03,240
Speaker 10: Yonick Center. Since the start of last year eighty and

218
00:11:03,360 --> 00:11:06,839
Speaker 10: six nine tournament wins, three majors. He one a second

219
00:11:06,840 --> 00:11:10,600
Speaker 10: street in Australia than John Stashell. Bloomberg Sports karnon even

220
00:11:13,200 --> 00:11:17,760
Speaker 10: coast to coast on Bloomberg Radio, nationwide on Sirius XM.

221
00:11:17,480 --> 00:11:19,920
Speaker 7: And around the world on Bloomberg dot.

222
00:11:19,760 --> 00:11:21,640
Speaker 8: Com and the Bloomberg Business app.

223
00:11:21,840 --> 00:11:23,439
Speaker 7: This is Bloomberg Daybreak.

224
00:11:23,600 --> 00:11:26,040
Speaker 4: Good morning, I'm Nathan Hager. We are seeing a route

225
00:11:26,040 --> 00:11:29,280
Speaker 4: in tech stocks this morning. Chinese startup Deep Seek is

226
00:11:29,360 --> 00:11:31,440
Speaker 4: driving a lot of buzz around the idea of a

227
00:11:31,480 --> 00:11:35,520
Speaker 4: low cost artificial intelligence model running on less advanced chips.

228
00:11:36,000 --> 00:11:38,760
Speaker 4: Capital dot Com senior market analyst Kyle Rada says it

229
00:11:38,800 --> 00:11:43,199
Speaker 4: could mark a narrative shift for the US led AI boom.

230
00:11:43,360 --> 00:11:46,280
Speaker 6: That kind of proverbial arms rice in technology investment in

231
00:11:46,280 --> 00:11:48,839
Speaker 6: an AI investment has taken a very very interesting turn

232
00:11:48,880 --> 00:11:51,600
Speaker 6: when now China looks like a very viable competitor, and

233
00:11:51,640 --> 00:11:53,800
Speaker 6: a competitor that you know, perhaps might catch the ire

234
00:11:53,840 --> 00:11:54,840
Speaker 6: of the Trump administration.

235
00:11:55,040 --> 00:11:57,439
Speaker 7: It's Kyle Rada of Capital dot Com and for more.

236
00:11:57,480 --> 00:11:59,960
Speaker 4: We're joined by Bloomberg Radio and television news anchor crit

237
00:12:00,240 --> 00:12:03,440
Speaker 4: gooped Cret. Good morning. What is it about Deep Sek's

238
00:12:03,520 --> 00:12:05,640
Speaker 4: model that we're hearing about right now that Scott Tech

239
00:12:05,640 --> 00:12:07,560
Speaker 4: investors clearly so spooked this morning?

240
00:12:08,200 --> 00:12:09,360
Speaker 7: Well, good morning, Nathan.

241
00:12:09,400 --> 00:12:12,280
Speaker 12: This is kind of the worst nightmare for a tech

242
00:12:12,360 --> 00:12:15,680
Speaker 12: bowl in that we know so much money has been pumped,

243
00:12:15,679 --> 00:12:21,079
Speaker 12: specifically from the hyperscalers like Amazon, Microsoft, Apple, et cetera,

244
00:12:21,320 --> 00:12:24,160
Speaker 12: who are sitting on trillions of dollars of cash just

245
00:12:24,160 --> 00:12:27,800
Speaker 12: getting pumped into the future of artificial intelligence. And this

246
00:12:28,040 --> 00:12:30,400
Speaker 12: of course was created this massive stock market rally. The

247
00:12:30,480 --> 00:12:33,520
Speaker 12: concern here now is that maybe all of that money

248
00:12:33,920 --> 00:12:36,840
Speaker 12: didn't necessarily need to be put into the extent that

249
00:12:36,960 --> 00:12:38,679
Speaker 12: it has in the stock market. Let me walk you

250
00:12:38,679 --> 00:12:40,840
Speaker 12: through some of my math here and Nathan. For example,

251
00:12:40,960 --> 00:12:44,320
Speaker 12: one Nvidia Blackwell chip is expected to go on the

252
00:12:44,320 --> 00:12:45,439
Speaker 12: market for somewhere.

253
00:12:45,160 --> 00:12:47,720
Speaker 7: Like thirty to forty thousand dollars per unit.

254
00:12:47,760 --> 00:12:50,240
Speaker 12: I remember we're talking about a chip alone, and of course

255
00:12:50,600 --> 00:12:54,480
Speaker 12: a ton basically of units used for one individual AI

256
00:12:54,559 --> 00:12:57,240
Speaker 12: data centers as so many of these companies are trying

257
00:12:57,280 --> 00:13:00,240
Speaker 12: to build out of course hundreds of data centers around

258
00:13:00,280 --> 00:13:02,040
Speaker 12: the world. So you can see very quickly how the

259
00:13:02,160 --> 00:13:05,839
Speaker 12: argument of just how much one chip is valued can

260
00:13:05,920 --> 00:13:09,440
Speaker 12: kind of skyrocket into almost an unknown positive figure. And

261
00:13:09,480 --> 00:13:12,319
Speaker 12: that's the sentiment at least that's been fueling the stock

262
00:13:12,360 --> 00:13:13,040
Speaker 12: market rally.

263
00:13:13,360 --> 00:13:15,360
Speaker 7: But the low and behold deep seek.

264
00:13:15,440 --> 00:13:19,880
Speaker 12: This Chinese startup around AI that's using technology very similar

265
00:13:19,960 --> 00:13:22,280
Speaker 12: to that of open Ai, which is already kind of

266
00:13:22,320 --> 00:13:27,360
Speaker 12: on the front of the latest inn AI. They are

267
00:13:27,400 --> 00:13:29,320
Speaker 12: now saying that they can do it on a much

268
00:13:29,400 --> 00:13:31,280
Speaker 12: cheaper cost. So if you're talking about the things you

269
00:13:31,360 --> 00:13:34,280
Speaker 12: need to get to artificial intelligent intelligence.

270
00:13:34,320 --> 00:13:35,480
Speaker 7: Think of it as a recipe.

271
00:13:35,679 --> 00:13:39,360
Speaker 12: You need chips, you need engineers, you need software kind

272
00:13:39,400 --> 00:13:41,480
Speaker 12: of talent who are thinking about this. You need a

273
00:13:41,559 --> 00:13:45,080
Speaker 12: data center, you need an electricity grid, you need things

274
00:13:45,120 --> 00:13:47,959
Speaker 12: like natural gas or oil to power that data center,

275
00:13:48,040 --> 00:13:50,160
Speaker 12: even solar for example. For the folks that are looking

276
00:13:50,160 --> 00:13:54,480
Speaker 12: into that, imagine if that one element of that recipe

277
00:13:55,000 --> 00:13:58,560
Speaker 12: is now able to be significantly cheaper. That's what Deep

278
00:13:58,600 --> 00:14:01,920
Speaker 12: Seek has basically shown over the weekend and in going

279
00:14:01,920 --> 00:14:03,800
Speaker 12: into last week as well, that they can do that.

280
00:14:03,800 --> 00:14:06,360
Speaker 12: They can provide the same sort of technology for a

281
00:14:06,480 --> 00:14:08,800
Speaker 12: much cheaper price. So the reason you're seeing the market

282
00:14:08,800 --> 00:14:11,040
Speaker 12: reflected is saying, well, hold on a second. If you

283
00:14:11,040 --> 00:14:14,319
Speaker 12: can do this for not as expensive of the price

284
00:14:14,400 --> 00:14:17,840
Speaker 12: as previously thought, then why have these stocks been rallying

285
00:14:17,880 --> 00:14:19,680
Speaker 12: to such an extent. And that's kind of the sentiment

286
00:14:19,920 --> 00:14:22,440
Speaker 12: that's driving this global tech route today.

287
00:14:22,440 --> 00:14:24,480
Speaker 4: And it's a sentiment that had driven you know, so

288
00:14:24,560 --> 00:14:26,720
Speaker 4: much of the rally as you mentioned up to now

289
00:14:26,840 --> 00:14:30,480
Speaker 4: that puts a focus of pretty bright spotlight. Now, doesn't

290
00:14:30,520 --> 00:14:33,000
Speaker 4: it on the tech earnings that are coming up as

291
00:14:33,040 --> 00:14:36,120
Speaker 4: soon as Wednesday For a lot of these big hyperscalers.

292
00:14:36,520 --> 00:14:37,200
Speaker 7: It absolutely does.

293
00:14:37,240 --> 00:14:39,520
Speaker 12: And I think context is everything here, Nathan, because remember

294
00:14:39,560 --> 00:14:42,440
Speaker 12: these hyperscalers. I mean, we talk about just a handful

295
00:14:42,480 --> 00:14:43,960
Speaker 12: of companies that are powering and video.

296
00:14:43,960 --> 00:14:44,360
Speaker 7: I remember and.

297
00:14:44,440 --> 00:14:47,760
Speaker 12: Video over about fifty percent of their kind of gains

298
00:14:47,760 --> 00:14:50,280
Speaker 12: and their customer base is really just from a handful

299
00:14:50,320 --> 00:14:53,400
Speaker 12: of the mag seven names, your Amazon's, your Microsoft's.

300
00:14:52,840 --> 00:14:53,280
Speaker 7: Et cetera.

301
00:14:53,680 --> 00:14:55,920
Speaker 12: And they're able to invest that much because they are

302
00:14:55,960 --> 00:15:00,000
Speaker 12: still sitting on trillions of dollars of cash post pandemic

303
00:15:00,360 --> 00:15:02,920
Speaker 12: and things that haven't really been able to be deployed

304
00:15:02,960 --> 00:15:06,080
Speaker 12: in acquisitions. And this is something that the tech playbook

305
00:15:06,360 --> 00:15:08,120
Speaker 12: is known very well for that you know, you kind

306
00:15:08,160 --> 00:15:11,240
Speaker 12: of bolt on some of these deals you buy new technology.

307
00:15:11,280 --> 00:15:14,440
Speaker 12: Think of a Facebook, for example, buying Instagram back in

308
00:15:14,480 --> 00:15:16,840
Speaker 12: the day. It's a similar playbook. They haven't really been

309
00:15:16,880 --> 00:15:19,560
Speaker 12: able to do that and use that cash. Instead, they're

310
00:15:19,600 --> 00:15:22,120
Speaker 12: spending a lot of that cash and investment in research

311
00:15:22,360 --> 00:15:25,400
Speaker 12: and of course in AI. Now basically the element here

312
00:15:25,480 --> 00:15:27,200
Speaker 12: is that maybe you don't need to do that. But

313
00:15:27,240 --> 00:15:29,320
Speaker 12: I'm going to caveat all of this, Nathan by simply

314
00:15:29,360 --> 00:15:31,920
Speaker 12: saying this is still experimental technology.

315
00:15:32,000 --> 00:15:33,440
Speaker 7: This is still just one example.

316
00:15:33,680 --> 00:15:35,640
Speaker 12: And we also don't have the full figures on what

317
00:15:35,760 --> 00:15:38,360
Speaker 12: kind of chips they use, just how much it's costing,

318
00:15:38,640 --> 00:15:40,360
Speaker 12: and whether or not there are others like it, or

319
00:15:40,360 --> 00:15:42,720
Speaker 12: if this is just kind of a one hit wonder.

320
00:15:42,840 --> 00:15:45,280
Speaker 12: Those are still the questions that remain in this market.

321
00:15:46,520 --> 00:15:49,960
Speaker 2: This is Bloombery Daybreak, your morning podcast on the stories

322
00:15:50,040 --> 00:15:53,040
Speaker 2: making news from Wall Street to Washington and beyond.

323
00:15:53,320 --> 00:15:55,720
Speaker 4: Look for us on your podcast feed by six am

324
00:15:55,760 --> 00:15:59,120
Speaker 4: Eastern each morning, on Apple, Spotify, or anywhere else you listen.

325
00:15:59,360 --> 00:16:02,040
Speaker 2: You can also us in live each morning starting at

326
00:16:02,040 --> 00:16:05,200
Speaker 2: five am Wall Street time on Bloomberg eleven three to zero.

327
00:16:04,960 --> 00:16:06,840
Speaker 7: In New York, Bloomberg.

328
00:16:06,320 --> 00:16:08,920
Speaker 2: In ninety nine to one in Washington, Bloomberg ninety two

329
00:16:09,040 --> 00:16:13,040
Speaker 2: nine in Boston, and nationwide on serious XM Channel one

330
00:16:13,080 --> 00:16:13,640
Speaker 2: twenty one.

331
00:16:14,040 --> 00:16:14,360
Speaker 3: Plus.

332
00:16:14,400 --> 00:16:16,960
Speaker 4: Listen coast to coast on the Bloomberg Business app now

333
00:16:17,000 --> 00:16:19,600
Speaker 4: with Apple CarPlay and Android Atto interfaces.

334
00:16:19,840 --> 00:16:22,880
Speaker 2: And don't forget to subscribe to Bloomberg News Now. It's

335
00:16:22,880 --> 00:16:25,600
Speaker 2: the latest news whenever you want it in five minutes

336
00:16:25,720 --> 00:16:28,840
Speaker 2: or less. Search Bloomberg News Now and your favorite podcast

337
00:16:28,880 --> 00:16:33,040
Speaker 2: platform to stay informed all day long. I'm Karen Moscow.

338
00:16:32,800 --> 00:16:35,320
Speaker 4: And I'm Nathan Hager. Join us again tomorrow morning for

339
00:16:35,400 --> 00:16:37,320
Speaker 4: all the news you need to start your day right

340
00:16:37,360 --> 00:16:38,800
Speaker 4: here on Bloomberg Day Ray