WEBVTT - Memory Chip Squeeze Widens Gap; Alphabet's Global Debt Binge

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Good morning.

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<v Speaker 3>I'm Nathan Hager and I'm Karen Moscow. Here are the

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<v Speaker 3>stories we're following today, Karen.

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<v Speaker 2>Trading begins this morning with stocks at or near record

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<v Speaker 2>highs and chip companies are the ones doing some of

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<v Speaker 2>the heavy lifting. Let's get more this morning from Bloomberg's

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<v Speaker 2>John Tucker. John, good morning, Good morning, Nathan. You have

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<v Speaker 2>the dal finished out of record. The S and P

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<v Speaker 2>five hundred drove to within a few points of its

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<v Speaker 2>record close. Two of the strongest forces pushing the S

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<v Speaker 2>and P five hundred upward were in Vidia, up two

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<v Speaker 2>point four percent. Broadcom serves three point three percent. Those

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<v Speaker 2>are the beneficiaries of all that capex spending, But always

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<v Speaker 2>lingering at the background, you have worries about whether all

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<v Speaker 2>the huge spending out of AI is going to produce

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<v Speaker 2>enough profit to make the investments worth it. Andrew slim

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<v Speaker 2>at at Morgan Stanley Marvel's at how investors seem to

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<v Speaker 2>climb a wall of worry.

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<v Speaker 4>I think the biggest risk is we go into a

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<v Speaker 4>kind of a real blow off stage, and every time

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<v Speaker 4>I start to worry about it, you know, the market

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<v Speaker 4>selves correct. So I think that's you know, that's a

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<v Speaker 4>healthy thing. And that's why I don't think we're we're

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<v Speaker 4>end of cycle.

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<v Speaker 5>One of the interesting feature this market is the surge

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<v Speaker 5>of memory chip prices. It's driven a vast divide between

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<v Speaker 5>winners and losers. You have companies from Nintendo to big

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<v Speaker 5>PC brands and even Apple suppliers seeing share slump on

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<v Speaker 5>profitability concerns. But the memory producers, they're soaring to unprecedented heights,

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<v Speaker 5>you know, New York. I'm John Tucker, Bloomberg Radio.

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<v Speaker 3>All right, John, thank you. Meanwhile, Alphabet is selling Sterling

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<v Speaker 3>and Swiss frank denominated bonds for the first time, including

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<v Speaker 3>an ultra rare issue of a one hundred year note

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<v Speaker 3>following a twenty billion dollar deal in the US. Bloombergy

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<v Speaker 3>Tech co anchor Caroline Hyde reports is just the latest

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<v Speaker 3>salvo and the AI spending spree.

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<v Speaker 6>He's just got. Also on the heels of Oracle, having

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<v Speaker 6>sold twenty five billion dollars a debt at the beginning

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<v Speaker 6>of last week. They got one hundred and twenty nine

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<v Speaker 6>billion dollars of demand, a record set. You might be

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<v Speaker 6>bracing for four hundred billion dollars of investment grade debt

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<v Speaker 6>coming to Finance.

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<v Speaker 3>AI and bloombergy Tech co host Caroline Hide. Yesterday, Alphabet

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<v Speaker 3>raised twenty billion dollars and a seven part dollar debt sale,

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<v Speaker 3>exceeding earlier expectations for a fifteen billion dollar deal. The

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<v Speaker 3>offering attracted more than one hundred billion dollars of orders

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<v Speaker 3>at its peak, among the strongest ever for a corporate

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<v Speaker 3>bond offering.

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<v Speaker 2>Turning to the economy Now Karen, President Trump says his

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<v Speaker 2>pick to lead the Federal Reserve, Kevin Walsh, could get

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<v Speaker 2>the US economy to grow at a rate of fifteen percent.

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<v Speaker 2>President spoke to Fox Business.

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<v Speaker 7>If our new head of the FED, who I think

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<v Speaker 7>is going to be great, and he's he's a really

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<v Speaker 7>high quality person. But if he does the job that

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<v Speaker 7>he's capable, we can grow at fifteen percent.

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<v Speaker 1>I think more than that.

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<v Speaker 2>President Trump says Kevin Walsh was his runner up in

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<v Speaker 2>his last search for a FED chair. He says it

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<v Speaker 2>was a big mistake to pick Powell Nathan.

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<v Speaker 3>The Justice Department is facing new pressure to release more

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<v Speaker 3>information about its investigation into Jeffrey Epstein. The lawmakers who

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<v Speaker 3>sponsored the bill to compel the agency to unseal its

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<v Speaker 3>Documents were able to review the unredacted files. Republican Thomas

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<v Speaker 3>Massey says what he saw could lead to more criminal prosecutions.

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<v Speaker 8>The user interface is a little clunky at first, but

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<v Speaker 8>what I saw that bothered me were the names of

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<v Speaker 8>at least six men that have been redacted that are

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<v Speaker 8>likely incriminated by their inclusion in these files.

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<v Speaker 3>Republican Thomas Massey was joined by Democrat Rocanna. He described

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<v Speaker 3>those six men as quote very powerful people who raped

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<v Speaker 3>these underaged girls. Meanwhile, on Capitol Hill, Jeffrey Epstein's convicted

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<v Speaker 3>former girlfriend, Glane Maxwell, appeared for a video deposition before

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<v Speaker 3>the House Overside Committee, but it didn't last long.

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<v Speaker 4>At any point during your personal relationship with Jeffrey Epstein,

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<v Speaker 4>were you aware that mister Epstein was sexually abusing minor

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<v Speaker 4>and adult women.

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<v Speaker 1>I would like to answer your question, but on the

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<v Speaker 1>advice of counsel, are respectfully declined to answer this question

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<v Speaker 1>and any related questions.

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<v Speaker 3>Glenn Maxwell repeatedly invoke the Fifth Amendment during the five

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<v Speaker 3>minute hearing. It led the overside panels top Democrat Robert

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<v Speaker 3>Garcia to ask who is she protecting?

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<v Speaker 2>We turn out of Arizona, Karen, where The investigation into

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<v Speaker 2>the disappearance of today's show co host Savannah Guthrie's mother, Nancy,

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<v Speaker 2>is now into a second week. Authorities are investigating the

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<v Speaker 2>apparent kidnapping, with a ransom deadline set by her purported abductors,

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<v Speaker 2>who sent ransom notes demanding money for her return. Savannah

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<v Speaker 2>Guthrie released a video saying her family is at an

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<v Speaker 2>hour of desperation.

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<v Speaker 1>We believe our mom is still out there.

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<v Speaker 5>We need your help.

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<v Speaker 1>Law enforcement is working tirelessly around the clock trying to

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<v Speaker 1>bring her home, trying to find her. She was taken

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<v Speaker 1>and we don't know where, and we need your help.

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<v Speaker 2>Investigators believe Nancy Guthrie was taken against her will from

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<v Speaker 2>her home. There is growing concerned about her health doud

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<v Speaker 2>or need for daily medication and pre existing medical conditions.

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<v Speaker 3>Well Over in Europe, Nathan Keir Starmer shored up his

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<v Speaker 3>position as UK Prime Minister at the end of a

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<v Speaker 3>dramatic day in Westminster that at times seemed like he

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<v Speaker 3>might be forced to step down. And we get the

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<v Speaker 3>very latest, so Bloomberg. James Wilcock in London.

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<v Speaker 9>James, good morning, Good morning, Karen and Nathan. We learned

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<v Speaker 9>yesterday that the Labor Party is deeply unhappy, but it

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<v Speaker 9>isn't yet open to the idea of getting rid of

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<v Speaker 9>the man in the top job. Publicly, cabinet minister's back

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<v Speaker 9>to the Prime Minister Labor MPs in Parliament were effusive,

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<v Speaker 9>but privately they told Bloomberg that challengers weren't yet ready

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<v Speaker 9>to run rival campaigns and said that certain ministers had

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<v Speaker 9>quote bottled it now. Economic data is starting to improve

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<v Speaker 9>in the UK, but political attention is left on the

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<v Speaker 9>numbers and more on the dates a special election in

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<v Speaker 9>two weeks and a local one in May, which is

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<v Speaker 9>seen as the next time crisis points in London.

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<v Speaker 2>James Wilcock Bloomberg, Radia James, thank you staying in the UK.

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<v Speaker 2>Barclay says it'll return at least twenty billion dollars to

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<v Speaker 2>shareholders through twenty twenty eight as the bank continues to

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<v Speaker 2>work through long term plan to slash costs and improve

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<v Speaker 2>profitability to hit its new targets. Barklay says it'll make

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<v Speaker 2>efficiency savings, including through artificial intelligence, while allocating more capital

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<v Speaker 2>to its UK business at the expense of the investment Bank.

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<v Speaker 2>Barclay CEO cs Nkotta Krishnan tells Bloomberg the bank is

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<v Speaker 2>firing on all cylinders.

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<v Speaker 10>So I'm very happy they're all doing well. And you know,

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<v Speaker 10>each of the businesses produced double digitality is in the

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<v Speaker 10>last year, and we're expecting them to continue. The strongest

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<v Speaker 10>performing parts have been the ones that have come from

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<v Speaker 10>the furthest behind, which is our US consumer bank, which

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<v Speaker 10>has gone from seven percent to eleven percent, and our

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<v Speaker 10>investment bank, which has also gone up.

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<v Speaker 2>That's barclay ceocs Nkotta Krishna on the lenders' earnings for

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<v Speaker 2>last year beat expectations, helped by its best fourth quarter

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<v Speaker 2>for tra since reporting change in twenty sixteen.

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<v Speaker 3>Well Shares of luxury goods Giant Carrying are up eleven

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<v Speaker 3>and a half percent this morning. Nathan. The jump came

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<v Speaker 3>after the French firm release results. I suggest it is

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<v Speaker 3>now on a path back to growth. Carrying's key Gucci

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<v Speaker 3>unit saw sales fall less than expected in the final

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<v Speaker 3>months of twenty twenty five, dropping ten percent in the

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<v Speaker 3>fourth quarter. Meanwhile, annual recurring operating income at the label

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<v Speaker 3>exceeded estimates.

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<v Speaker 2>Hey Karen, Billionaire Meta Platforms founder Mark Zuckerberg is planning

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<v Speaker 2>to buy a property in the Miami area. Sources Tel Bloomberg.

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<v Speaker 2>Zuckerberg and his wife Priscilla Channer looking at purchasing a

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<v Speaker 2>property on Indian Creek. That's a man made island in

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<v Speaker 2>Biscayne Bay known as Billionaire's Bunker. Residents of the Ultra

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<v Speaker 2>Secure Enclave already include Jared Kushner, Ivonka Trump, Amazon founder

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<v Speaker 2>Jeff Bezos, billionaire Carl Icon, and former New England Patriots

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<v Speaker 2>quarterback Tom Brady.

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<v Speaker 3>Time now for look at some of the other stories

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<v Speaker 3>making news in New York and around the world, and

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<v Speaker 3>for that we're joined by A. Bloomberg's Michael Barr Michael

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<v Speaker 3>good Morning.

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<v Speaker 11>Good Morning. Karent Nurses and two major hospital systems in

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<v Speaker 11>New York City have reached a deal to end a

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<v Speaker 11>nearly month long strike over staffing levels, workplace safety, and

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<v Speaker 11>other issues. The tenative agreement involves Matafior and Mount Sinai

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<v Speaker 11>hospital systems. The three year deal still needs to be

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<v Speaker 11>approved by union members. Nurses remain on strike at New

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<v Speaker 11>York Presbyterian, where Jennifer Lynch is a nurse practitioner in

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<v Speaker 11>Upper Manhattan.

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<v Speaker 3>NYP was the only hospital here in New York City

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<v Speaker 3>to have mass layoffs last year.

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<v Speaker 11>Maria Soy is a registered nurse at New York Presbyterian.

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<v Speaker 12>What we want people to take away is that this

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<v Speaker 12>is more than abount money.

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<v Speaker 11>The walkout began January twelfth. The FBI says there is

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<v Speaker 11>no credible threat to the public in Springfield, Ohio, following

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<v Speaker 11>bomb threats Monday targeting the Haitian community sent to school

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<v Speaker 11>and county offices. Governor Mike DeWine says the email threats

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<v Speaker 11>were also received in other parts of the state with

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<v Speaker 11>similar rhetoric, but it is unclear if they were from

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<v Speaker 11>the same people.

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<v Speaker 13>County offices in Clark County began receiving bomb threats Tokyo

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<v Speaker 13>about it pipe bombs. These are threats that also referenced Haitians.

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<v Speaker 13>It was the whole essence of the threats where the

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<v Speaker 13>Haitians should be out, get rid.

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<v Speaker 7>Of the Haitians.

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<v Speaker 11>Governor Dwine called it a despicable act. In September twenty

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<v Speaker 11>twenty four, bomb threats rattled Springfield after then presidential candidate

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<v Speaker 11>Donald Trump and his running mate JD. Vans doubled down

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<v Speaker 11>on false claims that Haitian immigrants were abducting and eating

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<v Speaker 11>pets measles was declared eliminated in the US over twenty

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<v Speaker 11>five years ago. Now a resurgence is on the rise.

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<v Speaker 11>Health officials blame the record breaking numbers on declining vaccination rates.

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<v Speaker 11>The CDC says twenty six eight have reported cases from

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<v Speaker 11>California to Florida, where at least two universities have reported cases.

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<v Speaker 11>In South Carolina, at least nine hundred people have been infected.

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<v Speaker 11>Global News twenty four hours a day and whenever you

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<v Speaker 11>want it with the Bloomberg News. Now, I'm Michael Barn.

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<v Speaker 11>This is Bloomberg. Karen.

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<v Speaker 3>Well, thanks Michael. Time now for our Bloomberg Sports Update,

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<v Speaker 3>and for that we bring in John Stash Howard.

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<v Speaker 11>Thanks Karen.

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<v Speaker 12>Arizona was a unanimous number one in college basketball. The

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<v Speaker 12>Wildcats took their twenty three to zero record to Kansas,

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<v Speaker 12>and Arizona had an eleven point lead back came. The

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<v Speaker 12>Jayhawks took their first lead midway through the second half.

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<v Speaker 12>In Kansas won eighty two to seventy eight. Big fight

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<v Speaker 12>in the NBA in Detroit's win at Charlotte had happened at

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<v Speaker 12>the third quarter. It started between Jaleen Duran and the

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<v Speaker 12>Pistons and Mussa Diavata of the Hornets, Isaiah Stewart of

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<v Speaker 12>the Pistons left the bench. Four players were ejected. That's

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<v Speaker 12>your Bloomberg Sports update.

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<v Speaker 3>Stay with us. More from Bloomberg day Break coming up

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<v Speaker 3>after this.

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<v Speaker 1>Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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<v Speaker 1>and around the world on Bloomberg dot Com and the

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<v Speaker 1>Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 2>Good morning, I'm Nathan Hager. The market is trading close

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<v Speaker 2>to all time highs once again for stocks this morning

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<v Speaker 2>after a viadyal few day is particularly in the big

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<v Speaker 2>tech sector. This week, the attention turns to a flood

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<v Speaker 2>of economic data, starting with retail sales out this morning.

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<v Speaker 2>For more, We're joined by Bloomberg News macro strategist Adam Linton. Adam,

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<v Speaker 2>good morning. Have we shaken off the worst of the

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<v Speaker 2>software sell off?

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<v Speaker 14>Good morning, Good morning, and thank you for having me so. Yeah,

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<v Speaker 14>in terms of the softare obviously that is incredibly thematic

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<v Speaker 14>at the moment. But we did, of course see some

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<v Speaker 14>signs of life in the tech sector yesterday. If they're

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<v Speaker 14>looking at the pre market indications, it does appear some

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<v Speaker 14>of that enthusiasm is waning. I think it's just playing

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<v Speaker 14>to more of a broader point that was just so

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<v Speaker 14>much more nuance around the tech trade at the moment,

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<v Speaker 14>and people just have a preference to rotate out to

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<v Speaker 14>that given the uncertainties surrounding the landscape.

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<v Speaker 2>And of course we've seen you know, so much attention

0:12:05.880 --> 0:12:09.800
<v Speaker 2>on the shortage and memory chips. It's leading to a

0:12:09.840 --> 0:12:12.920
<v Speaker 2>lot of winners and losers. Big gap there.

0:12:13.760 --> 0:12:15.800
<v Speaker 14>Yeah, definitely, And again it's just playing to this point

0:12:15.800 --> 0:12:18.560
<v Speaker 14>where the tech traders has become an increasingly more nuanced

0:12:18.559 --> 0:12:19.559
<v Speaker 14>I mean, last few it was at a bit of

0:12:19.559 --> 0:12:21.640
<v Speaker 14>a divide between the likes of Nvidia and Google as

0:12:21.679 --> 0:12:24.760
<v Speaker 14>some of those large language models came online. Then, as

0:12:24.800 --> 0:12:27.480
<v Speaker 14>you mentioned, we've seen suddeny software you know plays, and

0:12:27.480 --> 0:12:29.360
<v Speaker 14>now we've seen some of the memory chip plays as well.

0:12:29.360 --> 0:12:31.120
<v Speaker 14>So this is kind of playing to a broader point

0:12:31.240 --> 0:12:34.959
<v Speaker 14>that the NASDAC could potentially continue to struggle relative to peers.

0:12:35.040 --> 0:12:36.760
<v Speaker 14>If you look at the NASDAK, it's not hitting new

0:12:36.840 --> 0:12:39.640
<v Speaker 14>high since October, and then you look at the equas

0:12:39.720 --> 0:12:42.640
<v Speaker 14>and P five hundred that's hit thirteen records without NASDAQ

0:12:42.840 --> 0:12:45.559
<v Speaker 14>one hundred hitting a single one. So it does suggest

0:12:45.559 --> 0:12:48.280
<v Speaker 14>this rotation trade as well as the tech nuance very

0:12:48.320 --> 0:12:49.280
<v Speaker 14>much remains in play.

0:12:49.679 --> 0:12:53.600
<v Speaker 2>Of course, now with Alphabet tapping into the debt markets

0:12:53.640 --> 0:12:56.839
<v Speaker 2>to try to finance its plans for one hundred and

0:12:56.880 --> 0:13:00.640
<v Speaker 2>eighty five billion dollars in AI capex this year, now

0:13:00.679 --> 0:13:05.360
<v Speaker 2>going global with that, with this one hundred year Sterling note,

0:13:05.480 --> 0:13:07.200
<v Speaker 2>what could that mean for the tech sector.

0:13:08.240 --> 0:13:10.199
<v Speaker 14>Yeah, I mean it's definitely interesting given that we saw

0:13:10.240 --> 0:13:12.319
<v Speaker 14>these setting in Alphabet shares off the back of some

0:13:12.400 --> 0:13:14.120
<v Speaker 14>of the large capex plans. But I think this is

0:13:14.200 --> 0:13:16.520
<v Speaker 14>kind of refocused minds a little bit. It shows that

0:13:16.559 --> 0:13:18.679
<v Speaker 14>there is a real solid base of investors who are

0:13:18.679 --> 0:13:20.559
<v Speaker 14>still willing to buy that debt. I mean, if you

0:13:20.600 --> 0:13:22.800
<v Speaker 14>take that sterling notes, as you mentioned, you know there's

0:13:22.840 --> 0:13:26.000
<v Speaker 14>solid pension demands in the UK looking for that. If

0:13:26.120 --> 0:13:28.760
<v Speaker 14>UK debt markets, you know, on a sovereign level of faltering,

0:13:28.960 --> 0:13:31.200
<v Speaker 14>you know, something that we have seen yesterday, then they

0:13:31.200 --> 0:13:33.800
<v Speaker 14>could potentially be looking to diversify into some of these

0:13:33.840 --> 0:13:36.160
<v Speaker 14>sectors in terms of some of the duration. I mean,

0:13:36.200 --> 0:13:38.240
<v Speaker 14>if you take like the one hundred year note that's

0:13:38.280 --> 0:13:40.120
<v Speaker 14>going to be on offer, I mean some people will

0:13:40.160 --> 0:13:42.320
<v Speaker 14>bulk at that and just not turn to that, but

0:13:42.600 --> 0:13:44.760
<v Speaker 14>it does appear to be a solid investor base willing

0:13:44.800 --> 0:13:45.360
<v Speaker 14>to buy it up.

0:13:45.920 --> 0:13:48.079
<v Speaker 2>And in our last thirty seconds here we're good. As

0:13:48.080 --> 0:13:50.440
<v Speaker 2>I mentioned, we're going to get all this economic data

0:13:50.520 --> 0:13:54.200
<v Speaker 2>starting with retail sales today, the delayed non farm payrolls

0:13:54.240 --> 0:13:57.360
<v Speaker 2>report tomorrow. Are we looking for more volatility off the

0:13:57.400 --> 0:13:58.559
<v Speaker 2>back of the economic data?

0:13:59.240 --> 0:14:01.680
<v Speaker 14>Yeah, I think the idy. I think retail sales could

0:14:01.679 --> 0:14:03.880
<v Speaker 14>provide some reprieve. I think here we saw this message

0:14:03.880 --> 0:14:07.040
<v Speaker 14>in from Hassett yesterday, like in the potential four software

0:14:07.160 --> 0:14:09.520
<v Speaker 14>jobs data. If that is the case, you could see

0:14:09.520 --> 0:14:12.800
<v Speaker 14>a potential pricing for March April, which are relatively low

0:14:12.840 --> 0:14:14.240
<v Speaker 14>in terms of FED rate cut bets.

0:14:16.040 --> 0:14:19.000
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