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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, we begin with President Donald Trump's choice to lead

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Speaker 3: the Federal Reserve. The announcement is expected later this morning.

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Speaker 3: Bloomberg's John Tucker joins us with the very latest, John,

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Speaker 3: what do we know?

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Speaker 4: Well?

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Speaker 5: Kevin Worsh is the Trump administration's pick to be the

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Speaker 5: next chairman of the Federal Reserve, at least according to

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Speaker 5: our sources. Nathan, without mentioning Warsh, the President last night,

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Speaker 5: said an announcement would come this morning.

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Speaker 6: Just an outstanding person and a person that can't be

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Speaker 6: too surprising to people.

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Speaker 5: The fifty five year of war served on the Central

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Speaker 5: Bank's Board of Governors from two thousand and six to

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Speaker 5: twenty eleven, and his advised Trump on economic policy. This

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Speaker 5: would mark a comeback for Warsh, whom the President passed

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Speaker 5: over for the job back in twenty seventeen when he

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Speaker 5: selected Jerome Powell. Now for the moment, Investor see, Worsh

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Speaker 5: is less supportive of deep interest rate cuts. In the past,

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Speaker 5: He's warned of inflation risks and also delivered more recent

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Speaker 5: calls for the FED to reduce its balance sheet and

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Speaker 5: the confirmation that's not necessarily going to be smooth sailing.

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Speaker 5: A key Senator Tom Tillis, the North Carolina Republican who

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Speaker 5: sits on the Banking Committee, has bound to block any

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Speaker 5: of the President's FED nominees until the Justice Department resolves

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Speaker 5: in investigation into the Central Banks renovation of its Washington headquarters.

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Speaker 5: You know youyor income, John Tucker, Bloomberg Radio.

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Speaker 3: Well, John, what's the market reaction to our reporting?

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Speaker 5: This is the almost the knee jerk reaction, Nathan. As

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Speaker 5: a result, stocks fell, the treasury yields they pushed higher,

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Speaker 5: the dollar rows, gold slid, traders dialing back bets on

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Speaker 5: policy easing under Worsh. But you have to keep in

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Speaker 5: mind that Worsh has also aligned himself with the President

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Speaker 5: in recent months by arguing publicly for lower industry, going

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Speaker 5: against his long standing reputation as an inflation hawk. So

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Speaker 5: pick your stance, Karen and Nathan, all right.

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Speaker 7: John Tucker, thank you. We want to stay in Washington.

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Speaker 2: And President Trump has reached a tentative deal with Senate

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Speaker 2: Democrats to avert a government shut down over immigration rates

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Speaker 2: that have sparked a nationwide outcry. The President des urging

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Speaker 2: both parties to vote for the agreement, but House Speaker

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Speaker 2: Mike Johnson says there might not be time before government

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Speaker 2: funds run out tonight.

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Speaker 6: It may not be possible.

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Speaker 8: We have a rule of a seventy two hour notice

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Speaker 8: for a return, and I can try to truncate that,

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Speaker 8: but I've got people literally spread around the world right now,

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Speaker 8: so and we have a snowstorm.

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Speaker 2: Along with those comments from House Speaker Mike Johnson, Republican

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Speaker 2: Senator Lindsey Graham.

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Speaker 7: Has placed a hold on the bill.

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Speaker 2: The agreement would fund the Department of Homeland Security for

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Speaker 2: two weeks to allow time to negotiate on democrats demands.

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Speaker 2: They want DHS agents to wear body cameras, obtain warrants,

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Speaker 2: take off masks, and no longer conduct broad immigration sweeps.

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Speaker 3: Well White House orders our Tom Homan Karen says broad

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Speaker 3: sweeps will no longer be this strategy when it comes

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Speaker 3: to immigration enforcement. In Minneapolis, target enforcement operations wave we've

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Speaker 3: always die.

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Speaker 9: I think we got away from a little bit, and

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Speaker 9: we're going We're going to make sure we do target

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Speaker 9: enforcement operations and look and I will say it again.

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Speaker 9: You know we are not surrendering our mission at.

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Speaker 3: All borders our Tom Homan spoke at a news conference

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Speaker 3: heard live on Bloomberg Radio after President Trump put him

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Speaker 3: in charge of the operation in a bid to de

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Speaker 3: escalate tensions. California Governor Gavin Newsom is blasting the move.

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Speaker 10: If Tom Holman was accused of a fifty thousand dollars

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Speaker 10: bribe where charges disappeared, speaking of disappearing cash, FBI is

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Speaker 10: the adult in the room. We are in more trouble

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Speaker 10: than any of you think.

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Speaker 3: California Governor Gavin Newsom has clashed with President Trump over

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Speaker 3: National Guard deployments in Los Angeles. Last year, he spoke

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Speaker 3: at a Bloomberg newsmaker's event in San Francisco, and you

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Speaker 3: can catch that conversation on the Bloomberg podcast page on YouTube.

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Speaker 2: Nathan, let's turn to the weather now, where it'll be

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Speaker 2: another frigid weekend with the possibility of another winter store

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Speaker 2: and we get the latest at Bloomberg Meteorologist Craig Allen Craig,

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Speaker 2: Good morning.

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Speaker 11: Good morning, Karen, and yes it is bitter cold again

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Speaker 11: this morning. Temperatures the actual air temperatures near ten windchills

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Speaker 11: are between zero and ten below from Boston to New

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Speaker 11: York City down to d C. Now, let's talk about

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Speaker 11: the snow. Oh by the way, before I get there,

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Speaker 11: the cold goes all the way down into deep Floridy.

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Speaker 11: Even Miami has the possibility of freezing temperatures over the

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Speaker 11: upcoming weekend. All right, As for that snowstorm, there are

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Speaker 11: winter storm warnings in effect for the northern sections of

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Speaker 11: Georgia through the Carolinas to southern Virginia just to the

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Speaker 11: south of the DC area. Very little expected around d C.

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Speaker 11: It moves off the coast, could brush eastern Long Island.

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Speaker 11: New York City not like to see very much. You

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Speaker 11: know who's going to get the worst of this, It

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Speaker 11: would probably be Tape Cod. There will be a considerable

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Speaker 11: amount of snow and win maybe even blizzard conditions for

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Speaker 11: a brief period of time. But Boston's this to show

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Speaker 11: you how close things are. Boston will probably end up

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Speaker 11: with very very little, just strong gusty winds, so a

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Speaker 11: very tight gradient on this. But I think the worst

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Speaker 11: of the snow will stay offshore.

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Speaker 6: All right, Craig, thank you.

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Speaker 3: Of course, we're going to be checking back with Bloomberg

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Speaker 3: mediaologist Craig Allen throughout the morning as we continue to

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Speaker 3: track the storm.

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Speaker 6: But now let's go back to the markets.

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Speaker 3: As we mentioned, futures are clower to close out the

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Speaker 3: last trading day of the month. So far this year,

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Speaker 3: the S and P five hundred is up one point

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Speaker 3: eight percent, but you know this is just one month.

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Speaker 6: It is January.

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Speaker 3: Apple shares are little changed in early trading. The iPhone

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Speaker 3: maker delivered record quarterly sales and a better than expected

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Speaker 3: forecast for the current period, but it did one that

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Speaker 3: rising component costs are threatening to squeeze margins s.

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Speaker 6: Bloomberg's Mark German has details massive.

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Speaker 5: Massive quarter.

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Speaker 8: This is a home run, their greatest quarter ever by

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Speaker 8: orders of magnitude. It's a gigantic bee on overall revenue.

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Speaker 8: China is back. You have a big b on the

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Speaker 8: iPhone in particular. Eighty five billion dollar quarter is just insane.

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Speaker 8: The installed based two and a half billion. The numbers

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Speaker 8: are just beyond excellent.

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Speaker 3: Bloomberg's Mark German notes Apple had its biggest sales quarter

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Speaker 3: in China in four years.

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Speaker 2: Well, Nathan, it was quite a different earnings reaction for

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Speaker 2: another tech behemoth. Microsoft shares plunged ten percent yesterday, wiping

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Speaker 2: out three hundred and fifty seven billion dollars in market value.

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Speaker 2: That's the second largest single session drop in stock market history.

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Speaker 2: The fall comes after Microsoft showed records spending on artificial

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Speaker 2: intelligence has growth and it's key cloud units slowed. The

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Speaker 2: only bigger one day valuation drop was in videos five

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Speaker 2: hundred ninety three billion dollar rount last year, after the

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Speaker 2: launch of deep Seek's low cost AI model. Separately, Microsoft

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Speaker 2: reached a seven hundred and fifty million dollar deal with

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Speaker 2: AI startup Perplexity to use its Azure cloud service.

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Speaker 3: Arching shares of sand Disk as well. Karen, they are

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Speaker 3: soaring by twenty percent in early trading the computer hardware

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Speaker 3: and storage companies quarterly results easily.

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Speaker 6: Blueway analyst testaments.

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Speaker 3: Sand Disk was already up one hundred and twenty seven

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Speaker 3: percent so far this year before those earnings.

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Speaker 2: Nathan Elon Musk is considering a potential merger with a

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Speaker 2: few of his companies. On Bloomberg's Alexis, Christopheris joins us

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Speaker 2: with the details.

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Speaker 7: Good morning, Alexis, Good morning.

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Speaker 12: Yeah, it looks like Elon Musk is keeping it all

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Speaker 12: in the family. When it comes to his pending SpaceX IPO.

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Speaker 12: Sources telling Bloomberg that SpaceX is considering a potential merger

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Speaker 12: with Mosqu's Tesla or his artificial intelligence firm Xai. Now,

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Speaker 12: any deal could attract interest from infrastructure funds and Middle

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Speaker 12: Eastern sovereign investors, and would potentially require a large financing component.

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Speaker 12: SpaceX is targeting a June IPO that would value the

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Speaker 12: company at a record one and a half trillion dollars.

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Speaker 12: In New York, Alexis Christophers Bloomberg Radio.

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Speaker 6: All right, Alexis, thank you.

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Speaker 3: New York City mayor' z orn Mumdannie says Wall Street's

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Speaker 3: booming year will not be enough to stave off a

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Speaker 3: financial crisis. He says it's worse than the Great Recession

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Speaker 3: nearly two decades ago, and the city has a twelve

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Speaker 3: billion dollar fiscal deficit. The mayor spoke yesterday with Bloomberg.

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Speaker 13: The city's relationship with its wealthiest residents' most profitable corporations

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Speaker 13: also has to change so that we can bring this

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Speaker 13: city back to firm financial footing. You know, as the mayor,

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Speaker 13: I am legally required to balance the budget of this

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Speaker 13: fiscal year and the next. That is something we are

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Speaker 13: fully going to do. In order to do so, we

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Speaker 13: have to deal with these structural problems.

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Speaker 3: New York City Mayor's or Mumdani was a guest on

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Speaker 3: Bloomberg's Balance of Power. For the full conversation, you can

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Speaker 3: find that at the Bloomberg podcast channel on YouTube.

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Speaker 2: Time Now for a look at some of o their

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Speaker 2: stories making news in New York and around the world,

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Speaker 2: and for that we're joined by Bloomberg's Michael Barr.

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Speaker 6: Michael, good Morning, Good Morning Karen.

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Speaker 4: A Minnesota man is charged with a person an FBI

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Speaker 4: agent and trying to spring accused Killa Luigi mangione from jail.

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Speaker 4: Mangioni is pleaded not guilty to charges of killing United

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Speaker 4: Healthcare CEO Brian Thompson. Federal prosecutors say Mark Anderson showed

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Speaker 4: up at the Metropolitan Detention Center in Brooklyn with a

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Speaker 4: barbecue fork and pizza cutter in his bag. He claimed

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Speaker 4: he had paperwork signed by a judge authorizing Mangioni's release. Meanwhile,

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Speaker 4: Mangioni has a court appearance scheduled for today. Officials in

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Speaker 4: Fulton County, Georgia, vowing to fight a recent FBI raid

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Speaker 4: of twenty twenty election materials in court. FBI director Cash

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Speaker 4: Bettel says a federal judge determined there was probable cause

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Speaker 4: for the search. The man who served as a Republican

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Speaker 4: lieutenant governor during that time frame, Jeff Duncan, is now

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Speaker 4: running for Georgia governor as a Democrat.

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Speaker 5: I think everybody listening probably recognizes that Donald Trump has

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Speaker 5: weaponized every single department and agency in the federal government.

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Speaker 14: Certainly it feels as though this is the same case

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Speaker 14: with the FBI.

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Speaker 4: Duncan called it another predictable act by President Trump. A

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Speaker 4: former sheriff's deputy in Illinois is now starting a twenty

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Speaker 4: year prison sentence. It was handed down against Sean Grayson

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Speaker 4: for the shooting death of the Sonia Massy twenty twenty four, incident.

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Speaker 4: She had called nine to one one reporting a possible prowler.

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Speaker 4: Grayson says after he and his partner arrived, he felt

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Speaker 4: threatened when Massey, a black woman, moved toward a pot

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Speaker 4: of boiling water. That's when he fired at her. Cliff Jones,

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Speaker 4: family attorney of ben Crump Law, spoke after the sentencing.

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Speaker 15: This outcome affirms a critical principle that no one is

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Speaker 15: above the law and a lawful use of force will

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Speaker 15: carry many forul consequences.

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Speaker 4: Grayson was convicted of second degree murder. Global News twenty

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Speaker 4: four hours a day and whenever you want it with

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Speaker 4: Bloomberg News Now Michael Barr and this is Bloomberg.

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Speaker 14: Well, thanks Michael.

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Speaker 2: Time now for our Bloomberg Sports update, and for them

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Speaker 2: we bring in John Stashauer.

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Speaker 6: Thanks Darren Water.

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Speaker 16: Match in the main semifinals at the Australian Open, Carlos

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Speaker 16: Alcarez trying to complete the career Grand Slam. He had

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Speaker 16: a two set lead on alex Zaverev. Zaverev came back

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Speaker 16: to force a fifth set. Alcarez pulled it out seven

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Speaker 16: five In the fifth NBA Charlotte top Dallas, but in

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Speaker 16: defeat mas rookie Cooper Flag scored forty nine points the

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Speaker 16: Red Wings. Patrick Kane passed Mike Madonno most points in

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Speaker 16: an NHL history by US born player. That's a Bloomberg

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Speaker 16: Sports update.

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Speaker 2: Stay with us.

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Speaker 7: More from Bloomberg Day Break coming up after this.

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Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius Exam,

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Speaker 1: and around the world on Bloomberg dot Com and The

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Speaker 1: Bloomberg Business Altum. This is Bloomberg Daybreak and.

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Speaker 7: As Finn fourteen on Wall Street and more.

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Speaker 2: I'm parin Moscow alongside in Nathan Hager, and we want

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Speaker 2: to get more reaction to our top story this morning,

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Speaker 2: sources telling Bloomberg that Trump administration is preparing for the

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Speaker 2: President to nominate Kevin Worsh to be the next Federal

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Speaker 2: Reserve Chair.

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Speaker 7: And for more.

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Speaker 2: We're joined now by Michael McKee, Bloomberg News International Economics

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Speaker 2: and Policy correspondent, Mike.

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Speaker 7: Good morning.

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Speaker 2: So Hey, was this choice a surprise to you when

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Speaker 2: we heard about it late last night?

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Speaker 14: It wasn't really. Worsh has been sort of the favorite

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Speaker 14: from the beginning. We knew that Jay Pole's term would

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Speaker 14: be up, and when Donald Trump was elected, everybody looked

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Speaker 14: back to twenty seventeen when he was almost chosen by

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Speaker 14: the President to be fed chair. Instead, the President went

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Speaker 14: with Jay Powell, a move that Trump says he regrets immensely.

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Speaker 14: But Walsh has always been in the mix and has

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Speaker 14: been a strong candidate. His possibilities have moved up and

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Speaker 14: down with the news cycles, but it's not a shock

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Speaker 14: that he is the likely choice.

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Speaker 7: Well, tell us a bit about why he's a strong candidate.

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Speaker 14: Well, he has experienced a monetary policy experience because he

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Speaker 14: was on the FED from two thousand and six to

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Speaker 14: twenty eleven. He's also well known on Wall Street. He's

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Speaker 14: been working for Stan Druckenmiller at Duquane Capital since he

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Speaker 14: left the FED. But what really probably appeals to the

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Speaker 14: President is that Warsh has been a strident critic of

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Speaker 14: the FED, accusing the FED of a mission creep, of

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Speaker 14: doing too much instead of just focusing on monetary policy

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Speaker 14: and controlling inflation. He's a critic of QE. He wants

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Speaker 14: a much smaller balance sheet for the FED. He thinks

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Speaker 14: the FED could probably give up bank supervision, and he

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Speaker 14: thinks FED officials over communicate. So if he can get

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Speaker 14: control of the committee, he will probably make a lot

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Speaker 14: of changes at the FED. And that is something I

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Speaker 14: assume that Donald Trump would be happy with if he can.

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Speaker 2: Get control of the committee. You really emphasize that, so

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Speaker 2: there could be trouble doing that, It sounds like, of course.

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Speaker 14: Well, it depends a lot depends now on Jay Powell,

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Speaker 14: whether he's going to stick around or not, whether he

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Speaker 14: feels the FEDS and independence is threatened. If Powell will

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Speaker 14: decide that Warsh is good enough and he can quit.

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Speaker 14: Then that might open up two other Biden nominees to leave,

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Speaker 14: Philip Jefferson and Michael Barr, and then the President would

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Speaker 14: have a full complement of people on the FED that

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Speaker 14: he appointed. But it will also take legislation to make changes.

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Speaker 14: So there is the possibility that if the midterms don't

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Speaker 14: turn out as the way the Republicans would like, that

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Speaker 14: a lot of this gets stymied. But he can still

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Speaker 14: make a very strong imprint on the FED even if

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Speaker 14: he's not totally changing things around. Big question, Karen is

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Speaker 14: what he's going to do about monetary policy and interest rates.

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Speaker 14: The President, of course wants sharp cuts Warsh. Warsh has

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Speaker 14: a reputation as a hawk, which is why we've seen

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Speaker 14: interest rates go up this morning in the markets.

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Speaker 6: So we'll see how he balances that.

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Speaker 7: We will, indeed, so what is the next step before

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Speaker 7: we let you go? What happens next?

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Speaker 14: Well, the next step is a formal nomination, and then

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Speaker 14: we have a hearing nomination hearing and the Senate has

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Speaker 14: to confirm him as FED chair. Now there's plenty of

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Speaker 14: time to do that. The big question here is whether

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Speaker 14: Senator Tom Tillis of North Carolina will vote for him,

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Speaker 14: because Tillis's a key Republican on the Banking Committee, said

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Speaker 14: he won't vote for anybody until the subpoenas that the

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Speaker 14: administration has issued to J. Powell are withdrawn.

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Speaker 2: All Right, Michael McKee, Bloomberg News International Economics and Policy Correspondent,

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Speaker 2: Thanks for joining us this morning, Nathan.

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Speaker 3: All right, Karen, thank you repeating some of our top

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Speaker 3: stories this morning. A tentative deal is in place to

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Speaker 3: avert a government shut down over the Minneapolis ice surge,

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Speaker 3: but it might not pass before funds are out tonight.

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Speaker 3: Republican Senator Lindsey Graham is placed to hold on the

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Speaker 3: bill and the houses out till next week.

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Speaker 2: A powerful al nor easter is headed for the East

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Speaker 2: Coast this weekend, but the mid Atlantic and Northeast may

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Speaker 2: be spared the worst. It's expected to dump payby snow

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Speaker 2: on the Carolinas, but only give a glancing blow to DC,

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Speaker 2: New York and Boston.

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Speaker 3: And Bloomberg News has learned Elon Musk's SpaceX is considering

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Speaker 3: a merger with one of his other companies, tassel Up.

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Speaker 3: Sources say the billionaire's Rocket Companies also considering a tie

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Speaker 3: up with Elon Musk's AI startup Xai ahead of an

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Speaker 3: initial public offering, and we have more.

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Speaker 7: On those stories coming up on Bloomberg day Break.

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Speaker 3: All right, but let's keep the tech story going right now,

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Speaker 3: because we just did get earnings from Apple last night.

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Speaker 3: After the brutal reception for Microsoft's latest results, the reaction

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Speaker 3: it seems from Apple investors this morning is kind of

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Speaker 3: a shrug for more. Let's bring in two of the

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Speaker 3: biggest names in big tech on Wall Street. Dan Ives

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Speaker 3: is with us this morning, global head of Tech research

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Speaker 3: at Webush Securities. Gene Munster, managing partner at Deepwater Asset Management.

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Speaker 3: Great to have the both of you back with us

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Speaker 3: on Bloomberg Daybreak, just to get your reaction to this

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Speaker 3: record sales quarter for Apple, sales up sixteen percent and

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Speaker 3: the revenue projected to be thirteen to sixteen percent in

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Speaker 3: the upcoming quarter. The stock little change to lower. Gene,

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Speaker 3: what's going on?

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Speaker 17: Well, just I think Mark did a good setup in

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Speaker 17: your segment a minute ago, just kind of enumerating the numbers.

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Speaker 17: They're impressive. It's pretty clear there's like two tracks going on.

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Speaker 18: Here.

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Speaker 17: One is that the fundamentals of Apple is customers are

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Speaker 17: just loving the products, and this conversation about AI having

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Speaker 17: a negative impacts there really is nothing going on on

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Speaker 17: the hardware side to get people to change their behavior.

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Speaker 17: And so that has been a big benefit to Apple

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Speaker 17: as they're kind of navigating improving their AI features and

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Speaker 17: so what's going on that's just been you know, it's

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Speaker 17: hard to get the right adjectives to describe. I suspect

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Speaker 17: Dan's going to do a good job of framing those

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Speaker 17: adjectives in But you know, my bigger question is why

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Speaker 17: is the market reacting like.

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Speaker 6: It is to these incredible results?

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Speaker 3: You know, Dan, what's your reaction to this this market reaction?

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Speaker 3: Like I said, the shares are little change to the

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Speaker 3: downside after a blowout quarter, least as far as the

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Speaker 3: top line numbers go.

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Speaker 2: Yeah.

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Speaker 18: Look, I mean these are staggering numbers in terms of iPhone,

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Speaker 18: especially what they saw in China. And the Jane's point,

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Speaker 18: you know, is always puts a great look. I think

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Speaker 18: the stock should be up five to eight percent the least,

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Speaker 18: and I think part of it, but nythn go back

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Speaker 18: to a year ago look at Google, no one would

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Speaker 18: touch it. New York City cab drivers bears on it.

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Speaker 18: Apple will be Google in twenty twenty six. I believe

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Speaker 18: like we will sit here at year end, and that's

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Speaker 18: where I think you're looking at, you know, three twenty five,

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Speaker 18: three fifty, And I think this is the first start

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Speaker 18: of what's going to be like a Hall of Fame

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Speaker 18: chapter for Cook as he defines the AI in Pupatina.

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Speaker 3: Just to pick up on that, Dan is that because

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Speaker 3: of the AI ramp up, it's been a slow go

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Speaker 3: as far as AI goes for Apple, hasn't it.

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Speaker 4: Yeah.

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Speaker 18: Look, they've been on treadmill at two point five speed.

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Speaker 18: I mean they've been watching it from the stands. But

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Speaker 18: our point Genie talked about this as well, so much

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Speaker 18: like the Google deal is so important in Gemini, that's

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Speaker 18: the first step they're bringing new blood in from the outside.

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Speaker 18: And I think they're and even some acquisitions are starting

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Speaker 18: to filely change DNA, and I think that's very, very important.

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Speaker 3: What about monetization concerns, We saw that reflected in the

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Speaker 3: reaction to Microsoft's results certainly, Jane.

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Speaker 17: Yeah, with I just want to make one more point

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Speaker 17: about Apple too. It's just trying to like uh, dissect

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Speaker 17: what's going on and why this market reaction is. You know,

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Speaker 17: Dan's talking about the AI. I want to put a

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Speaker 17: finer point on that is they really don't give us

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Speaker 17: a ton around the substance of what the what AI

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Speaker 17: is going to look like. And we go from Dan

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Speaker 17: and I go from all the call and it's just

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Speaker 17: like you fuck around AI and specifics. But then you

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Speaker 17: get to Apple and these precious once every three months opportunities,

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Speaker 17: they're not They don't say much to the street, and

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Speaker 17: when they don't really frame in like for example, they

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Speaker 17: acquired a company for two million dollars, is really AI

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Speaker 17: audio company? That was that news broke yesterday QAI And

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Speaker 17: there's no comment on the call, no one even mentioned it.

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Speaker 17: And I think it kind of speaks to investors just

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Speaker 17: want to hear more. And because of what happened with

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Speaker 17: Apple on the missteps out of the gate, that treadmill

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Speaker 17: speed that Dan's talking about, because of that, Cook doesn't

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Speaker 17: want to say much and which is fine, but that's

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Speaker 17: I think what's happening is that that disconnect, you know,

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Speaker 17: on the Microsoft side, it's that that small change in

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Speaker 17: terms of how they think about Azure growth has a

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Speaker 17: massive impact on to the downside, at least on shares recently.

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Speaker 6: Yeah, let's pick up on that.

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Speaker 3: As far as Amazon, what what was your reaction when

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Speaker 3: you saw the plunge in Microsoft stock after their earnings.

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Speaker 18: Look, I don't think that was medella the Microsoft's pass call.

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Speaker 19: I think they didn't really give clarity as much about

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Speaker 19: Azure in terms of what growth is going to look

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Speaker 19: like Capac's book reshot from Meta quarter ago, right, I mean,

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Speaker 19: obviously strong quarter this quarter, but tap acts investors want

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Speaker 19: to see demonization Microsoft.

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Speaker 18: It was a little disappointing relative to whiskers and obviously

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Speaker 18: the stock cock crush and that's going to be your

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Speaker 18: gena park that that's gonna be the narrative this year

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Speaker 18: if you excel look at Meta. But if you if

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Speaker 18: you tip over the shoeleases like Microsoft dossing it and

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Speaker 18: I'd believe it's an opportunity. But it speaks to the

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Speaker 18: screwin is.

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Speaker 3: This a leveling off of valuations? Gene this reaction to

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Speaker 3: what we saw from Microsoft, could that be reflected in

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Speaker 3: some of the other big tech names as well.

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Speaker 6: I think it speaks to this.

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Speaker 17: Some of the concern that investors have that you know,

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Speaker 17: we're one quarter away from things kind of getting bad,

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Speaker 17: and I mean that's kind of been around for a

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Speaker 17: year or so, but you know, you look what happened

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Speaker 17: to software yesterday. More broadly, it was down five, six

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Speaker 17: ten percent, and so I think it's, you know, it's

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Speaker 17: it's still this kind of skepticism, and I think ultimately

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Speaker 17: what's going to happen is that this is going to

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Speaker 17: be more significant. The growth is going to be higher

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Speaker 17: for longer, and I think some of this concern the

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Speaker 17: fundamentals will just kind of show that there is no

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Speaker 17: need to worry. I'll just put a quick context onto it.

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Speaker 17: We use these models internally. We have strategies that use

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Speaker 17: AI for picking stocks as well. We have humans, and

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Speaker 17: we're deep in these these models and our experiences that

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Speaker 17: the inference side, the thinking side, is going to be

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Speaker 17: hundreds of thousands of times bigger. I know that sounds

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Speaker 17: crazy than the training side, and I think that reality

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Speaker 17: just hasn't come close to thinking into the market. And

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Speaker 17: I think when that happens, they're going to see investors

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Speaker 17: start to turn more positive on these companies.

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Speaker 3: Dan, I want to ask you how this sets up

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Speaker 3: for Amazon's results next week. Is the bar higher now

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Speaker 3: for awst outperform after what we've seen for Microsoft and Apple.

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Speaker 18: Look, I think I mean there's some extent. I think

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Speaker 18: the Amazon bar is something where I think they're going

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Speaker 18: to excel from a cloud perspective. I actually think Microsoft's

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Speaker 18: one where the bar maybe a little higher. I think

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Speaker 18: Amazon's actually being underestimated. I think you're gonna said look

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Speaker 18: in terms of earnings Google Amazon. I view it as

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Speaker 18: just another step in the right direction. Jeene said, you

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Speaker 18: come out of his earning season. This is not a bubble.

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Speaker 18: Some more validation of the spending, but investors your digestion,

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Speaker 18: and you're seeing some just general nervousness and.

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Speaker 3: Just thirty seconds left, unfortunately. But Dan, I got to

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Speaker 3: get your reaction to our reporting from Bloomberg News that

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Speaker 3: SpaceX is considering either a merger with Tesla or with Xai.

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Speaker 6: What could that mean for Tesla? Since you follow that

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Speaker 6: company so closely, I think it's very bullish.

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Speaker 18: It speaks to our view in terms of this is

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Speaker 18: something that always is what we thought should happen. From

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Speaker 18: the Xai and space action. It speaks to what's going

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Speaker 18: to be I think a historical year from Musk and Testloo.

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Speaker 2: This is Bloomberg day Break, your morning podcast on the

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Speaker 7: I'm Karen Moscow.

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Speaker 6: And I'm Nathan Hager.

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Speaker 3: Join us again tomorrow morning for all the news you

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Speaker 3: need to start your day right here on Bloomberg Day

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Speaker 3: Ray