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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: This is the Bloomberg Daybacate podcast, available every morning on Apple,

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Speaker 2: Spotify or wherever you listen. It's Wednesday, the twenty ninth

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Speaker 2: of January in London. I'm Caroline Hipkin.

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Speaker 1: And I'm Stephen Carroll. Coming up today, the UK's Chancellor,

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Speaker 1: Rachel Reeves wants to go further and faster to boost

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Speaker 1: growth by unblocking new infrastructure projects.

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Speaker 2: Microsoft is investigating whether a deep Seak linked group obtained

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Speaker 2: open AI data without authorization.

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Speaker 1: Plus collaborating in secret. Bloomberg learns Apple and SpaceX are

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Speaker 1: working to add the Starlink network to iPhones.

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Speaker 3: Let's start with a round up of our top stories.

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Speaker 1: The UK's Chancellor, Rachel Reeves will pledge today to boost

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Speaker 1: the economy by unblocking new infrastructure projects and deregulation. In

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Speaker 1: a speech intended to reframe the narrative around her tenures

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Speaker 1: so far, Reeves will say growth won't come without a fight.

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Speaker 1: It's a message Kirstarmer has also sought to deliver in

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Speaker 1: the last twenty four hours.

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Speaker 4: The number one priority of this labor government is gross

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Speaker 4: gross growth growth and by that I mean wealsh creation,

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Speaker 4: We have to get our economy working. I think we're

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Speaker 4: beginning to see how that's turning around. We'll build on

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Speaker 4: that as we go forward.

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Speaker 1: Chris Charmer speaking there as he joined the Chancellor in

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Speaker 1: Bloomberg's London headquarters yesterday to pitch the government's plan to business.

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Speaker 1: Reader's speech is expected to include a green light for

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Speaker 1: new homes and transport links between Oxford and Cambridge, as

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Speaker 1: well as possible backing for a third runway at Heathrow.

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Speaker 1: We'll have live coverage on Bloomberg Radio of the speech

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Speaker 1: for our UK audience starting at ten am London time.

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Speaker 3: Microsoft and open Ai.

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Speaker 2: I'm investigating whether data from open AI's technology was obtained

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Speaker 2: in an unauthorized way by a group linked to China's

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Speaker 2: deep Seek. Deep Seek and the hedge fund High Flyer

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Speaker 2: where deep Seat was started, did not immediately respond to

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Speaker 2: requests for common and it comes as President Donald Trump's

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Speaker 2: ais are David Sachs told Fox News that there is

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Speaker 2: substantial evidence that the Chinese AARA startup did distill knowledge

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Speaker 2: from open Ai models.

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Speaker 5: There's a technique in Ai called distillation, which you're going

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Speaker 5: to hear a lot about, and it's when a one

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Speaker 5: model learns from another model. Effectively, what happens is that

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Speaker 5: the student model asked the parent model a lot of questions,

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Speaker 5: just like a human would learn. But ais can do

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Speaker 5: this asking millions of questions, and they can essentially mimic

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Speaker 5: the reasoning process that they learned from the parent model,

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Speaker 5: and they can kind of suck the knowledge out of

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Speaker 5: the parent model. And there's substantial evidence that what Deepseak

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Speaker 5: did here is they distilled the knowledge out of open

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Speaker 5: AI's models, and I don't think open ai is very

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Speaker 5: happy about this.

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Speaker 2: In a statement, open Ai didn't directly address those comments

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Speaker 2: by David Sachs, but did say that they know companies

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Speaker 2: based in the People's with public of China and others

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Speaker 2: are quote constantly trying to distill the models of leading

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Speaker 2: USAI companies. Markets are continuing to grapple with the impact

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Speaker 2: of Deepsek's AI model, known as R one, which was

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Speaker 2: produced at a fraction of the cost of its US competitors,

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Speaker 2: leading to a one trillion dollar route in tech stocs.

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Speaker 1: Apple has been secretly working with SpaceX and T Mobile

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Speaker 1: US to include the Starlink network in its latest iPhone software.

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Speaker 1: Wimberg has learned that the smartphone's latest software update, release

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Speaker 1: this week, supports the technology. The tie up comes as

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Speaker 1: a surprise. Apple already provides its own offering, and neither

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Speaker 1: company had signaled the change was coming.

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Speaker 2: A judge has temporarily halted President chump surprise order to

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Speaker 2: freeze fed or grant funding. The order was issued after

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Speaker 2: a lawsuit filed by a coalition of non profit organizations.

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Speaker 2: New York Senator Chuck Schumer was highly critical of the measures.

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Speaker 6: In an instant with no precedent, no justification, no legal grounds,

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Speaker 6: Donald Trump has shut off billions, perhaps trillions, of dollars

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Speaker 6: that help American families every single.

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Speaker 2: Day, New York Senator Chuck Schumer speaking there. The original

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Speaker 2: White House memo sparked widespread confusion and panic about its

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Speaker 2: broad scope, which included anti poverty initiatives and medical research,

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Speaker 2: as well as other forms of aid. Some Republicans have

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Speaker 2: supported the president's announcement on spending, whilst Democrats have described

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Speaker 2: the plans as unconstitutional.

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Speaker 1: ALVMH has reported subdued demand as wealthy shoppers remained cautious.

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Speaker 1: The luxury Giant posted a one percent decline in sales

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Speaker 1: of fashion and leather goods during the last three months

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Speaker 1: of twenty twenty four, while revenue grew by just one percent,

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Speaker 1: despite both figures being ahead of analyst estimates. Revenue disappointed

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Speaker 1: as the firm's recurring income fell by fourteen percent. Of

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Speaker 1: Your Major CEO Belnar Alnau is optimistic about the prospects

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Speaker 1: in the United States, telling reporters that Donald Trump has

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Speaker 1: brought a wind of optimism. The billionaire also referred to

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Speaker 1: his return to France after the US presidential inauguration as

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Speaker 1: a cold shower.

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Speaker 2: Now supersonic air travel might be returning to passenger flights.

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Speaker 2: A new aircraft from Boom Technology broke the sound barrier

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Speaker 2: for the first time in tests yesterday bloomb egx James

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Speaker 2: Wilcock Casmore.

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Speaker 7: It's been twenty years since Concour's final flight. Now Boom

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Speaker 7: Technology want to revive the dream of taking you from

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Speaker 7: London to Miami in less than five hours. This is

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Speaker 7: the sound of their first major step taking.

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Speaker 3: Off actual level.

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Speaker 7: Their XB one craft is now the first civil supersonic

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Speaker 7: jet made in America, but the company plans to go bigger.

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Speaker 7: They intend to carry passengers on a supersonic commercial airliner

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Speaker 7: three times larger by twenty twenty nine. It's a tough challenge.

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Speaker 7: Boom is one of the few players left in the

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Speaker 7: space due to the financial and technical difficulties in London.

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Speaker 7: James Wilcock, Bloomberg Radio.

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Speaker 1: Those are your top stories on the markets. We saw

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Speaker 1: a rebound and tech shows yesterday, the Nasdak finishing up

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Speaker 1: one point six percent, European stock features pointing higher three

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Speaker 1: quarters of one percent on the eurostocks fifty Today. We

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Speaker 1: have the Federal Reserve decision later on tenure treasury o

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Speaker 1: Ahead of that, databasis point to four point five two percent.

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Speaker 1: The Bloomberg Dollar Spot Index is a tenth weeker. We've

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Speaker 1: got the Japanese and three tenths stronger at one fifty

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Speaker 1: five fourteen against the dollar.

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Speaker 2: Now, in a moment, we'll bring you more on what

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Speaker 2: to expect from the UK Chancellor's speech on growth later

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Speaker 2: today and Apple's latest innovation with Starlink. But first a

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Speaker 2: word on another story that we've been reading this morning

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Speaker 2: from our opinion Coldness about food, the highs and lows.

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Speaker 2: This is Howard cha Yan, who is a dedicated foodie.

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Speaker 3: He's always got a great piece out, Yeah he does.

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Speaker 1: He's a great Instagram account as well, I follow has

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Speaker 1: various culinary adventures, but he's been writing about the dominance

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Speaker 1: of French cooking in contemporary cuisine. Referring to the latest

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Speaker 1: Bookhuse Dog Competition, which is named after the legendary Leon Hfus,

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Speaker 1: he says that, you know, this is something that's kind

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Speaker 1: of been true without history, is that even now the

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Speaker 1: hottest new restaurants are French restaurants. It's sort of a

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Speaker 1: lot of people's entryway into the business. It's seen as

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Speaker 1: being sort of the you know, the hegemony of cooking

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Speaker 1: if you want. But and this is the part that

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Speaker 1: I really love about this piece. He also talks about

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Speaker 1: that it's not about everything being fancy and wonderful, and

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Speaker 1: even the most incredible creations can fall flat, whereas sometimes

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Speaker 1: you really just want the slice of pizza from the

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Speaker 1: place that you like in Greenwich, or that you want

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Speaker 1: to have your favorite noodle dish from your local Cantonese restaurant,

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Speaker 1: or you know, they're talking about the love of the

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Speaker 1: kind of simple, not low cuisine, he points out, just

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Speaker 1: good food.

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Speaker 2: Okay, yeah, I don't wonder whether any any French person

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Speaker 2: would agree with that, don't know. Yeah, definitely favorite French

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Speaker 2: for you lived in France for years.

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Speaker 3: I've lived in France for years. Favorite French food.

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Speaker 1: Oh I mean it can't be a paramanti.

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Speaker 3: AhR Ratitui full editor.

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Speaker 2: As a child, I love it as an adult. There

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Speaker 2: you go, great peace on the terminal to think about

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Speaker 2: this morning.

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Speaker 1: Let's bring you more in now on the Chancellor Rachel

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Speaker 1: Reeves plans to go further and faster to boost the

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Speaker 1: UK economy through new infrastructure projects. Our UK correspond at

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Speaker 1: Lizzie Pardon is with us now for more. Lizzie, what

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Speaker 1: are we expecting from the Chancellor today?

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Speaker 8: So we're expecting it to give the green light to

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Speaker 8: a load of infrastructure projects, possibly signaling backing for a

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Speaker 8: third runway Heathrow. This is something we've been reporting on

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Speaker 8: all week. We're also expecting announcements focused on building up

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Speaker 8: this region around Oxford and Cambridge to make what they're

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Speaker 8: calling the potential to be Europe's Silicon Valley. So we'll

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Speaker 8: get announcements on more funding to improve transport in the area,

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Speaker 8: housing as well, and we're expecting the appointment of Science

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Speaker 8: Minister Patrick Vallance as the Oxford Cambridge Growth Corridor Champion.

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Speaker 8: So putting flesh on the bones of that growth, Growth,

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Speaker 8: Growth ambition that you heard from Kirs Starmer a moment ago.

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Speaker 2: Yeah, Okay, criticism though of course that it centers a

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Speaker 2: lot on the south and the southeast of England rather

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Speaker 2: than the rest of the country. Already, Rachel Reeves and

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Speaker 2: Kis Darmer were here in Bloomberg's You're Up headquarters in

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Speaker 2: London yesterday to make this pitch to business leaders. If

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Speaker 2: you've read any of this on the Blueberg website, you'll

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Speaker 2: see a nice picture of them also sitting there. What

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Speaker 2: have they been hearing in terms of what the business

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Speaker 2: leaders think about this pitch from government.

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Speaker 8: Well, it was interesting, Steven and I spoke to Kathy

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Speaker 8: Ward yesterday, the CEO and co founder of ARC Invest,

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Speaker 8: and she was quite clear that it's good. Rachel Reeves

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Speaker 8: and Kirstarmer are going for it when it comes to

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Speaker 8: this messaging on growth, and actually she's making lots of

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Speaker 8: investments here in the UK. But then we spoke to

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Speaker 8: the former TESCO CEO, Dave Lewis, and he says, you

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Speaker 8: can't just talk the UK to growth. You need joined

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Speaker 8: up thinking across government.

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Speaker 3: You need action. And I mentioned the.

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Speaker 8: Announcement that we're expecting on a third runway at Heathrow

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Speaker 8: despite the opposition on climate grounds within the cabinet. And

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Speaker 8: actually we've also on Bloomberg TV been speaking to the

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Speaker 8: Ryanair CFO about this and they're different.

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Speaker 3: There's a different opposition here.

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Speaker 8: He says, yes, we'd be keen to see more growth,

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Speaker 8: Yes we'd be keen to see more capacity. But in

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Speaker 8: his words, if you really want the airlines to grow

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Speaker 8: in the UK, you need to bring down the taxes

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Speaker 8: on passengers arriving and leaving the country. So it's not

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Speaker 8: just as easy as building a third runway. And of

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Speaker 8: course businesses got absolutely whacked with the tax hikes in

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Speaker 8: the October budget and.

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Speaker 1: That's contributed to this narrative that we've had around the

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Speaker 1: Labor government in recent months, adding to a run of

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Speaker 1: bad economic data as well. Is this going to be

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Speaker 1: enough to turn around the sort of doom narrative that

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Speaker 1: there is around the government.

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Speaker 8: Well, if you look at all the data recently, it's

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Speaker 8: gloomy and that economic messaging has weighed on the economy.

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Speaker 8: You've got private sector activity stagnating, public sector borrowing over

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Speaker 8: shooting forecast, jobs cut at the fastest pace since the

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Speaker 8: financial crisis, consume a confidence at its lowest in more

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Speaker 8: than a year, not to mention the two bouts of

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Speaker 8: market turmoil and the fact that the change in the

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Speaker 8: non dom rules mean that there's been an exodus of

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Speaker 8: millionaires out of the UK. So ultimately, yes, growth is

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Speaker 8: the holy grail, but it's going to take time to

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Speaker 8: materialize in the data. Reeves knows this, and she's going

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Speaker 8: to say today growth will not come without a fight.

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Speaker 8: There'll be a fight on the climate when it comes

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Speaker 8: to Heathrow. But labor's on the ropes. Starmer's got this

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Speaker 8: big majority. Now it's time to take on his opponents.

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Speaker 2: Yeah, I mean I think the swift retort to that

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Speaker 2: is why why does it take a fight on growth?

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Speaker 2: I think business leaders might have been kind of scratching

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Speaker 2: their heads on that. Also thought it was fascinating though

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Speaker 2: the Chancellor talking, sorry, the Prime Minister talking about AR

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Speaker 2: artificial intelligence.

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Speaker 3: You know, when he was.

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Speaker 2: Speaking to business leaders he said that the UK would

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Speaker 2: strip away flation, strip away the inhibition of planning, and

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Speaker 2: use AI to take us forward. This had a very

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Speaker 2: interesting sort of pivotal time in development of AI. Lizzie

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Speaker 2: and I wonder also how that is actually going to

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Speaker 2: be delivered.

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Speaker 8: Yeah, I think an interesting question is whether you can

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Speaker 8: get the top AI talent to stay in the UK,

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Speaker 8: stay around Oxford and Cambridge when you've got the tax

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Speaker 8: system as it is in the UK compared to the US,

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Speaker 8: when you have salaries as they are, and whether you

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Speaker 8: can get these companies to list here we already lost

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Speaker 8: arm for example, and whether we have the energy policy

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Speaker 8: to support it. That's Dave Lewis's new project. And yes,

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Speaker 8: the Labor government has made lots of noises about green

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Speaker 8: energy the transition. But when you've got Donald Trump across

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Speaker 8: the pond talking about drill baby drill and harnessing fossil

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Speaker 8: fuels to boost growth using the AI boom, can the

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Speaker 8: UK keep up?

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Speaker 3: Look?

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Speaker 1: I think those are really interesting here too, around how

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Speaker 1: much deregulation can deliver and how the UK positions itself

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Speaker 1: between the United States and that approach, as you mentioned, Lizzie,

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Speaker 1: from Donald Trump of wanting to drive towards deregulation, and

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Speaker 1: then the signals that are also coming out of the

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Speaker 1: European Union. You know, the European Comission President our Silvangelid

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Speaker 1: is presenting her Competitiveness Compass today, which is supposed to

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Speaker 1: also include talk of cutting red tape for businesses. When

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Speaker 1: we spoke to Kathy Wood yesterday, she was quite favorable

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Speaker 1: about how the approach the UK is taking as being

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Speaker 1: sort of the middle way between the more regulation in

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Speaker 1: Europe and the less in the United States. And she

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Speaker 1: wasn't that concerned. Although she is too in favor of

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Speaker 1: deregulation and has praised Donald Trump's efforts, she didn't seem

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Speaker 1: that concerned that that, you know, rules were going to

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Speaker 1: be stifling the innovation opportunity in the UK.

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Speaker 8: No, indeed, But as you say, Kathy would very much

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Speaker 8: somebody who is a risk taker, and she is behind

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Speaker 8: Donald Trump's deregulation. There are others on the other side

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Speaker 8: of the coin who'll say, look, Rachel Reeves is talking

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Speaker 8: of deregulation. She's axed the Competition Markets Authority chair delayed

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Speaker 8: the introduction of stricter bank capital rules. But that will

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Speaker 8: come at a cost and a cost to consumers. You've

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Speaker 8: got regulation for a reason, and so they have to

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Speaker 8: make this bold statement, and at the moment it is

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Speaker 8: growth at pretty much any cost.

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Speaker 2: Well, except that they have not included of course, the

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Speaker 2: two main drivers of economic growth as economists would see it,

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Speaker 2: closer ties to the European Union and migration. On those

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Speaker 2: points the labor government doesn't seem to be changing. And

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Speaker 2: on workers' rights again more regulation coming in, there doesn't

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Speaker 2: seem to be a change in turn on that front either.

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Speaker 8: Yeah, well that's exactly the point. John Micklethwaite had his

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Speaker 8: sit down with the Business Secretary and the Chancellor at

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Speaker 8: Davos and they were saying that they would be growth

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Speaker 8: over climate when it came to Heathrow or the hinting

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Speaker 8: at that. So then the question becomes, why aren't you

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Speaker 8: prioritizing growth when it comes to EU relationship. Look, there's

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Speaker 8: likely to be a compromise here. Reeves has signaled in

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Speaker 8: interviews over the weekend that the UK's open to membership

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Speaker 8: of the Pan Euro Mediterranean Convention as that looks to

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Speaker 8: ease trade frictions with the EU. And of course there

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Speaker 8: is the huge political headache of reversing Brexit. So you

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Speaker 8: can see labor trying to inch towards those closer trade

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Speaker 8: ties with the EU.

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Speaker 1: Okay, more details to come from Rachel Reeves later on today.

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Speaker 1: We will bring that speech to you live for our

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Speaker 1: UK listeners here on Bloomberg Radio as well for no

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Speaker 1: Elsie Berd and our UK correspondent, thank you very much

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Speaker 1: for joining us.

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Speaker 7: Now.

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Speaker 2: Bloomberg has learned that Apple has been secretly working with

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Speaker 2: SpaceX and T Mobile in the US to add support

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Speaker 2: for the Starlink network to iPhones. Our chief technology correspondent

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Speaker 2: Mark German joins us now for more on his reporting. Mark,

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Speaker 2: good morning, thanks for being with us. So first, ye,

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Speaker 2: what's the goal of this tie up and what does

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Speaker 2: it actually mean for an iPhone? You're going to have

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Speaker 2: to take me through this very slowly, Mark.

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Speaker 9: Okay, so good morning, thank you so much for having me.

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Speaker 9: So really, today, phones connect to the network in two ways.

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Speaker 9: There is the home way, which is you go on

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Speaker 9: your home Wi Fi network. This is typically when you're

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Speaker 9: at the office, when your house, you when you download movies,

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Speaker 9: you want to download a TV show, you want to

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Speaker 9: play games. But when you're out and about, you're connecting

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Speaker 9: to the cellular data network, right, and so you're using

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Speaker 9: your carrier plan in order to use the web browser

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Speaker 9: to do text messaging, to do other things you normally

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Speaker 9: do in your phone that require an Internet connection, but

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Speaker 9: slowly emerging is a third way of downloading data to

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Speaker 9: the phone, and that's satellite networks and Elon Musk's SpaceX.

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Speaker 9: Other companies, including Apple itself with a partner known as

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Speaker 9: Global Star, have been working on satellite networks for iPhones

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Speaker 9: in order to do text messaging and emergency services in

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Speaker 9: places like a long hike or a back road that

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Speaker 9: not have cellular connection. The idea u satellites far away

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Speaker 9: one hundreds of miles away in the sky in order

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Speaker 9: to always stay connected. And Apple has its own service

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Speaker 9: that it rolled out a few years ago with Global

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Speaker 9: Star for emergency services. Late last year they enabled text

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Speaker 9: messaging over that network. But there's alternatives in SpaceX through

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Speaker 9: a new one called Starlink, is its own new satellite

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Speaker 9: network that Apple is now also going to support on

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Speaker 9: the iPhone in the US. This is starting with T Mobile,

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Speaker 9: but SpaceX is Starlink their negotiations with other carriers around

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Speaker 9: the world to tie to their networks as well, so

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Speaker 9: this could be offered outside the US eventually as well.

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Speaker 1: So what if Apple were developing their own system for this,

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Speaker 1: why were why go to Starlink? Why do you deal

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Speaker 1: with them?

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Speaker 9: So? Yes, indeed, Apple has its own service. This is

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Speaker 9: through Global Star. It's called Emergency soos over Satellite or

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Speaker 9: I Message over Satellite. This is available in many countries

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Speaker 9: around the world, but there they want to have their

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Speaker 9: own satellite providers as well. Right, the carriers don't want

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Speaker 9: to get jettisoned by this service from Apple the service

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Speaker 9: from other companies. So they're partnering, right, and so T

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Speaker 9: mobiles partner is SpaceX, Starlink, Verizon, an AT, and T

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Speaker 9: the other major carriers in the US, other carriers around

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Speaker 9: the world. They're negotiating their own partnerships, and in order

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Speaker 9: to keep those carrier relationships healthy, Apple has to work

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Speaker 9: with these third party solutions as well. I've also believed

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Speaker 9: they're doing this to avoid antitrust scrutiny. It would be

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Speaker 9: a big antitrust violation if Apple were to promote its

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Speaker 9: satellite service and then block these third party services as

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Speaker 9: well that are, by the way, already tied to the

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Speaker 9: networks that its iPhone customers are paying for.

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Speaker 2: So what was the plan then to roll out these

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Speaker 2: services going forwards?

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Speaker 9: So I can speak to Starlink and the T mobile service.

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Speaker 9: As of now, it's in a very early beta. There's

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Speaker 9: probably fewer than a customers with access to this at

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Speaker 9: this point. I would say maybe only a handful of

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Speaker 9: people have actually been able to be in an off

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Speaker 9: the grid situation where they're actually using this technology at

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Speaker 9: this point. But over time, I expect the satellite networks

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Speaker 9: to get much better. Right now, you're able to do

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Speaker 9: very low bandwidth text messages with friends with emergency services.

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Speaker 9: But over the arc of time, maybe five ten years,

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Speaker 9: I expect these to evolve to be able to send images, video,

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Speaker 9: power applications, maybe one day even make brief phone calls.

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Speaker 9: But I still think we're ways away from that happening.

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Speaker 1: Mark. This is coming in a week where we're going

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Speaker 1: to get earnings from Apple. The indications aren't great. Worries

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Speaker 1: about risks of tariff's weakness in China. What will you

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Speaker 1: be watching out for when we got that earning support tomorrow.

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Speaker 9: Yeah, Obviously there's a lot of peripheral stuff around the

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Speaker 9: edges facing Apple right now. Obviously there's the presumptive tariffs

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Speaker 9: situation that's going to impact them given the second Trump administration.

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Speaker 9: Obviously there's concerns about iPhone sales in China. According to

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Speaker 9: Counterpoint Research, Huawei in terms of flagship phone sales, it's

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Speaker 9: now talk to the iPhone there, with the iPhone sales

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Speaker 9: falling somewhere north of eighteen percent in China. You have

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Speaker 9: the situation with its artificial intelligence service being very basic

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Speaker 9: at this point, but none of that really matters, right

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Speaker 9: to investors. If Apple crushes the Wall Street forecasts and

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Speaker 9: last I checked, the forecasts are you know, between three

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Speaker 9: and six percent growth year every year, and if they

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Speaker 9: beat that, I think investors will be happy. All things considered,

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Speaker 9: it's very likely going to be a record quarter for

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Speaker 9: Apple all time throughout the history of the company, the

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Speaker 9: most revenue they ever generated in a quarter. There's a possibility,

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Speaker 9: I would say it's a coin possibility that you're even

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Speaker 9: going to see a record on both iPhone and service

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Speaker 9: to sales as well. So if they go three for

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Speaker 9: three on that right, all time revenue record, all time

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Speaker 9: ifel revenue record, all time services record, despite all the

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Speaker 9: very real noise of surrounding them, I think they'll have

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Speaker 9: a positive story to tell.

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Speaker 1: Oh, Mark, I can sents you have your binger kardiat

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Speaker 1: already for when you get that report, But I did

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Speaker 1: want to ask you one more thing about this. It's

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Speaker 1: been a week of course, with the AI stories dominated markets,

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Speaker 1: the cold question around Deep Seek and what it might

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Speaker 1: mean for AI and for big tech companies. Where is

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Speaker 1: Apple and the AI journey? Where should we be thinking

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Speaker 1: about it to cite it in that story, where we

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Speaker 1: could be looking at it, perhaps a new revelution in

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Speaker 1: the AI space.

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Speaker 9: Well, I would say of all the things that Apple

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Speaker 9: is prioritizing and working right on right now, I would

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Speaker 9: say their AI effort is probably the least impressive of

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Speaker 9: the bunch. I mean up there with the vision pro

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Speaker 9: the vision pro ser is even less impressive than the

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Speaker 9: AI work. But at the same time they're very much

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Speaker 9: behind there. There are serious questions about the work. There

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Speaker 9: are serious questions about why they're still behind open ai

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Speaker 9: and other competitors. But this deep seek situation, you know,

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Speaker 9: you noticed Apple stock went up when all the other

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Speaker 9: companies went down because of deep Seek, And I think

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Speaker 9: Deep Seek what it did is it did affirm a

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Speaker 9: couple of strategies that Apple's doing here with AI. One

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Speaker 9: strategy is to be sort of the Switzerland of AI

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Speaker 9: and be the platform of AI and have all these

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Speaker 9: companies run on top of their operating system. So I

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Speaker 9: think that deep Seek, you know, if that continues to

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Speaker 9: see momentum, there is some potential beneficiary to Apple here

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Speaker 9: from subscriptions and the like, So we'll see what happens there.

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Speaker 9: For one, I think it's going to get banned, but

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Speaker 9: that's just my speculation. The other thing is that deep

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Speaker 9: Seek is very light AI models, a lot of stuff

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Speaker 9: running on device, and Apple's really pushing the on device

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Speaker 9: idea for processing these generative AI models versus pushing everything

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Speaker 9: to the cloud like Open AI and Google.

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Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

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Speaker 3: I'm Caroline Hepka and.

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Speaker 1: I'm Stephen Carroll. Join us again tomorrow morning for all

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Speaker 1: the news you need to start your day right here

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Speaker 1: on Bloomberg Daybreak Europe,