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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 start with big tech and a big number,

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Speaker 3: six hundred and fifty billion dollars. That is how much

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Speaker 3: for the biggest US tech companies plan to spend this

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Speaker 3: year on capital expenditures. Bloomberg News has calculated the spending

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Speaker 3: plan by Alphabet Meta platforms, Microsoft and Amazon will set

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Speaker 3: a high water mark for spending by any single corporation

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Speaker 3: in any one of the last ten years. Shares in

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Speaker 3: Amazon fell after the e commerce joint announced its latest

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Speaker 3: earnings and plans to spend two hundred billion this year

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Speaker 3: on AI, data centers, chips and other equipment. CEO Andy

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Speaker 3: Jasse says the money will predominantly go to the company's

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Speaker 3: cloud unit, and most of that spending.

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Speaker 4: Will be for AI workloads.

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Speaker 3: Speaking on the earnings call, Jasse said, it will be

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Speaker 3: worth it will at this what's happening.

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Speaker 5: It's kind of unbelievable if you look at the demand

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Speaker 5: of what you're seeing already with AI, but the lion's

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Speaker 5: share of that demand is still you have to come

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Speaker 5: in the middle of that barbell and that will come

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Speaker 5: over time.

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Speaker 2: And Amazon shares are down almost eight percent after Andy

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Speaker 2: Jesse spoke with the spending you set the weigh on profits.

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Speaker 2: Punham Goil covers Amazon for Bloomberg Intelligence, they need.

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Speaker 6: To invest right. We know that Amazon has to continue

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Speaker 6: to invest in cloud services, it needs to invest in AI.

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Speaker 6: So there's a lot of catchup that needs to be

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Speaker 6: done here. I think the long run narrative here is

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Speaker 6: still good. The underlying results were solid across both aws

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Speaker 6: and retail.

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Speaker 2: And Bloomberg Intelligence analysts. Punum Goyle knows that some of

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Speaker 2: Amazon's capital expenditures will go toward its effort to compete

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Speaker 2: with SpaceX's Starlink Internet service by placing satellites in low

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Speaker 2: Earth orbit and.

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Speaker 3: Karen the AI disruption trade has the S and P

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Speaker 3: five hundred on track for its worst weeks. And it's

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Speaker 3: April and the risk off mood has extended to crypto

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Speaker 3: as well. Let's get the market roundup from Bloomberg's John Tucker,

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Speaker 3: Johnky morning, Yeah.

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Speaker 7: Nathan, this is not unlike that deep seat sell off

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Speaker 7: a year ago. Investors haven't spooked by developments on a

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Speaker 7: couple of fronts. The rollout of those models from Anthropic

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Speaker 7: that threaten to make software services redundant, alongside the eye

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Speaker 7: watering spending plans of the big tech companies who are

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Speaker 7: just mentioning now the Tech having nasty Composite Index now

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Speaker 7: a three percent year to day loss. The risk off

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Speaker 7: mood it did extend to bitcoin. The selling picked up

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Speaker 7: the steam this week, in line with the unwinding of

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Speaker 7: leverage bets and broader market turbulence. No Bel laureate Paul

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Speaker 7: Krugman sees a possible crisis of faith in crypto.

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Speaker 8: I think it's a big wake up for people.

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Speaker 2: You know, maybe this isn't actually going to be an

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Speaker 2: enduring asset.

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Speaker 7: We'll sell off briefly dragged bitcoin to a more than

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Speaker 7: fifty percent retreat from the October peak. Just yesterday, investors

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Speaker 7: pulled four hundred and thirty four million dollars from US

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Speaker 7: exchange traded fund for bitcoin, and now this morning, stock

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Speaker 7: features are modestly higher and bitcoin is on four percent

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Speaker 7: close to sixty six thousand dollars a token. In New

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Speaker 7: York on John Tucker Bloomberg.

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Speaker 2: Radio, all right, John, thank you, let's turn to geopolitics now.

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Speaker 2: At Alman said it mediated indirect talks between Iran and

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Speaker 2: the United States Severtran's nuclear program.

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Speaker 6: In a post on x.

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Speaker 2: Oman said, it's Foreign minister met separately with Iranian Foreign

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Speaker 2: Minister Abbasaragachi, then with US MIDI Special Envoy Steve Wikoff

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Speaker 2: and Jared Kushner. President Trump's son in law, Bloomberg Economics

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Speaker 2: defense lead Beka Wasser tells Bloomberg Balance of Power. She

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Speaker 2: has some concerns.

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Speaker 8: I am most certainly not optimistic, and I think some

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Speaker 8: of that is because of the firepower that we've seen

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Speaker 8: massed in the region at this point in time. We've

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Speaker 8: also seen Iran engage in some risky behavior, whether that

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Speaker 8: is an attempt to seize a US flag tanker or

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Speaker 8: whether that is having a drone buzz near the US

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Speaker 8: carrier in the Middle East.

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Speaker 2: And Becca Wesser is defense lead for Bloomberg Economics. The

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Speaker 2: talks come after a chaotic week that initially saw plans

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Speaker 2: for regional countries to take part in talks in Turkey Karen.

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Speaker 3: President Trump is calling for the creation of a new

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Speaker 3: nuclear arms treaty with Russia as its existing New Start

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Speaker 3: agreement expires. A post on Truth Social the president writes quote.

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Speaker 3: Rather than extend New Start, we should have our nuclear

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Speaker 3: experts work on a new, improved, and modernized treaty that

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Speaker 3: can last long into the future. Former Republican Congressman Patrick

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Speaker 3: McHenry thinks it's a good idea.

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Speaker 9: I think we haven't addressed nuclear disarmament in over a

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Speaker 9: generation here in the United States. I think it's worthwhile endeavor.

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Speaker 9: I think the complexity of this administration's foreign policy is

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Speaker 9: not well understood by the market. Everything is interconnected Russia,

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Speaker 9: the Middle of East, China, Russia, Ukraine, Middle East, China, Canada.

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Speaker 9: All the trade conversations, all the foreign policy and Department

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Speaker 9: of War actions, They're all connected.

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Speaker 3: Former Republican Congressman Patrick McHenry is now Bloomberg News contributor.

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Speaker 3: He spoke on Bloomberg's Bounce of Power as well, noting

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Speaker 3: that Newstart was the last remaining major arms control treaty

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Speaker 3: between the US and Russia.

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Speaker 2: Meanwhile, Nathan, a top Russian military intelligence officer, was wounded

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Speaker 2: in an assassination attempt in Moscow. According to the country's

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Speaker 2: Investigative Committee, Lieutenant General Vladimir Alexeyev was hospitalized after a

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Speaker 2: gunman fired several shots that'side a residential building in northwest Moscow.

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Speaker 2: Alexeyev is first deputy head of a gru military intelligence agency.

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Speaker 3: Turning to Washington now Karen, President Trump is looking to

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Speaker 3: address American's cost of living concerns through a new online portal.

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Speaker 10: Starting tonight, dozens of the most commonly used prescription drugs

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Speaker 10: will be available at dramatic discounts for all consumers throughout

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Speaker 10: a new website is called trump rx dot gov.

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Speaker 3: Speaking at a primetime White House event, President Trump said

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Speaker 3: more than forty medications will be available on the site,

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Speaker 3: including Nova Nordisk's ozembic and wagov for one hundred and

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Speaker 3: ninety nine dollars, as well as emd Serono's fertility treatment.

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Speaker 10: For example, a single dose of the most common IVF

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Speaker 10: drug in the country, gonal F, will plummet from the

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Speaker 10: highest price in the developed world that we paid. The

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Speaker 10: United States was subsidizing everybody. We paid the highest to

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Speaker 10: the lowest price in the world.

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Speaker 3: President Trump's new website will get around the pharmacy benefit

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Speaker 3: managers that go between drug makers and insurance companies. Farmer

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Speaker 3: companies say the current system forces them to charge more

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Speaker 3: and limit patient access, but it remains to be seen

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Speaker 3: whether Trump RX will significantly bring down costs and entice

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Speaker 3: more Americans to buy direct rather than through insurance.

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Speaker 6: Well.

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Speaker 2: Staying with politics here, Nathan. The race in New Jersey

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Speaker 2: between a one time political director for Senator Bernie Sanders

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Speaker 2: and a former congressman was too early to call in

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Speaker 2: a special House Democratic primary for a seat that was

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Speaker 2: vacated after Mikey Cheryl was elected governor. Former Representative Tom

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Speaker 2: Melanowski started election night with a significant lead over Anna

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Speaker 2: Lilya Mahia, based largely on early results from mail in ballads.

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Speaker 2: The margin narrowed as results from votes cast that day.

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Speaker 2: We're tallied more than sixty one thousand votes counted. Mahia

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Speaker 2: leeds Melanowski by four hundred and eighty six, or less

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Speaker 2: than one percentage point.

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Speaker 3: Kay, Let's update you now on the search for Nancy Guthrie,

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Speaker 3: the mother of NBC Today's Show host Savannah Kind of three,

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Speaker 3: who was last seen at her home Saturday night. Earlier

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Speaker 3: this week, Savannah made an emotional plea to her mother's

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Speaker 3: apparent kidnapper at Arizona. This morning, Savannah's brother, Cameron made

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Speaker 3: an appeal of his own.

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Speaker 11: This is Cameron Guthrie. I'm speaking for the Guthrie family.

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Speaker 11: Whoever is out there holding our mother, we want to

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Speaker 11: hear from you. We haven't heard anything directly. We need

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Speaker 11: you to reach out and we need a way to

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Speaker 11: communicate with you so we can move forward. But first

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Speaker 11: we have to know that you have our mom. We

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Speaker 11: went to talk to you and we are waiting for contact.

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Speaker 3: Nitharties in Arizona have not identified any suspects or persons

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Speaker 3: of interest, but tests show blood found on Nancy Guthrie's

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Speaker 3: front porch does match her DNA. Investigators have found no

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Speaker 3: proof that Savannah Guthrie's mother is still alive five days

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Speaker 3: after she was taken from her home in Tucson over

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Speaker 3: the weekend.

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Speaker 2: Time now for look at some of the other stories

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

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Speaker 2: from that, we're joined by Bloomberg's Michael Barr.

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Speaker 4: Michael, good morning, Good morning, Karen. The northeast, including New

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Speaker 4: York City. We'll get a brief touch of snow this

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Speaker 4: weekend before a frigid blast of Arctic air pushes through

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Speaker 4: the region. Bloomberg minegrologist Rob Carolyn has the latest.

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Speaker 12: Michael, We've got one more blast of arcticare to get

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Speaker 12: through here in the Tristate area before temperature start to

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Speaker 12: moderate during next week. National Weather Service has an extreme

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Speaker 12: cold warning and effect for the Tristate area from ten

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Speaker 12: am Saturday morning through one one pm Sunday afternoon. We're

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Speaker 12: also under a wind advisory Saturday morning through midnight on Sunday.

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Speaker 12: So not only do we get the Arctic air moving in,

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Speaker 12: but it's going to be a company by some very

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Speaker 12: strong wins that's going to push the windshills well below zero.

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Speaker 12: At times Saturday night and Sunday morning, you'll feel like

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Speaker 12: it's twenty to twenty five below. I'm Rob Carolyn Bloomberg Radio.

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Speaker 4: Thank you, sir. Archbishop Designate Ron Hicks will officially take

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Speaker 4: over the Archdiocese of New York today. An installation mass

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Speaker 4: will formally mark the beginning of his leadership. Hicks spoke

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Speaker 4: at a news conference Thursday from Saint Patrick's Cathedral.

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Speaker 13: You're going to notice that I will reference the number

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Speaker 13: of time Pope Leo the fourteenth. I will strive always

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Speaker 13: to be obedient and respectful to him and also collaborate

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Speaker 13: with his vision.

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Speaker 4: Hicks succeeds Timothy Cardinal Dolan. Democratic lawmakers responded with anger

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Speaker 4: over reports that President Donald Trump told Senate Minority Leader

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Speaker 4: Chuck Schumer last month he would release sixteen billion dollars

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Speaker 4: in federal funds for the Gateway Tunnel project in exchange

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Speaker 4: for renaming of New York's Penn Station and Washington's Dulles

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Speaker 4: International Airport after him. According to several media outlets, Schumer

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Speaker 4: reportedly told the President that he did not have the

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Speaker 4: power to approve the request. The Gateway Development Commission has

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Speaker 4: warned that it must stop work today on the New

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Speaker 4: York New Jersey Tunnel project under the Hudson River unless

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Speaker 4: the Department of Transportation immediately releases federal funding tied to

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Speaker 4: the project. Global News twenty four hours a day and

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Speaker 4: whenever you want it with the Bloomberg News. Now, I'm

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Speaker 4: Michael Barr, and this is Bloomberg here.

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Speaker 5: Well, thanks Michael.

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Speaker 2: A time now for our Bloomberg Sports update, and for

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Speaker 2: that we bring in John stash Hour.

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Speaker 14: It's darn NFL Awards night ahead of Sunday Super Bowl

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Speaker 14: the in San Francisco. Matthew Stafford named NFL MVP. The

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Speaker 14: Rams quarterback at age thirty seven through over forty seven

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Speaker 14: hundred yards forty six touchdowns. Garrett name defensive Player of

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Speaker 14: the Year after setting a new sacks record. Mike Rabel

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Speaker 14: name Coach of the Year. Sunday, he'll coach the Patriots

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Speaker 14: of the Super Bowl against Seattle. From baseball, Tarrek Scooble

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Speaker 14: won his arbitration case against the Detroit Tigers. He'll make

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Speaker 14: thirty two million. That's a Bloomberg Sports updates.

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Speaker 2: Stay with us. More from Bloomberg day Break coming up

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Speaker 2: after this.

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

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

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Speaker 1: Bloomberg Business opp This is Bloomberg Daybreak.

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Speaker 3: Good morning on Nathan Hager. It is a staggering number.

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Speaker 3: Six hundred and fifty billion dollars is how much the

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Speaker 3: four biggest tech companies plan to spend this year in

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Speaker 3: the race for AI dominance. We learned last night Amazon

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Speaker 3: alone accounts for nearly a third of that at two

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Speaker 3: hundred billion, raising questions once again but for investors about

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Speaker 3: whether the payoff from AI is going to catch up

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Speaker 3: with all that spend. Joining us this morning is Parmie

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Speaker 3: Olsen Tech columnists for Bloomberg Opinion, these concerns you share. Parming,

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Speaker 3: good morning.

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Speaker 15: Hi, good morning.

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Speaker 10: Yeah.

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Speaker 15: I mean we've obviously been seeing big tech companies spending

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Speaker 15: a lot on AI and the infrastructure to build AI

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Speaker 15: over the last twelve to twenty four months, so this

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Speaker 15: is nothing new. But I think what we're really starting

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Speaker 15: to see and what really intrigues me about this is

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Speaker 15: this kind of almost an identity shift for these companies,

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Speaker 15: because if you think about why they're so valuable in

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Speaker 15: the first place, it's that they're asset light, right, like,

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Speaker 15: they have a lot of staff, and they maybe have

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Speaker 15: some data centers, but then they build this incredibly valuable

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Speaker 15: software and they have incredible margins. Now they're becoming these

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Speaker 15: kind of capital intensive infrastructure operators. They're almost like telecoms

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Speaker 15: now with all this CAPEC spending. So it does feel

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Speaker 15: like this is a gradual shift, and we're seeing it

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Speaker 15: continue to happen, and there's definitely going to be some

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Speaker 15: kind of questioning in the market about whether they deserve

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Speaker 15: these premium valuations when they are spending quite so much.

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Speaker 3: Yeah, and it's interesting to see how the reaction has

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Speaker 3: played out just through this earning season. When meta platforms

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Speaker 3: reported how much they were going to spend, the markets

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Speaker 3: seemed to like it. Not so much for the rest

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Speaker 3: of these names so far.

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Speaker 14: What do you make of that?

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Speaker 15: It's you know, with everything that's happened in the market

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Speaker 15: this past week, and we can talk about the trigger

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Speaker 15: from anthropic as well, it's so hard to you know,

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Speaker 15: identify exactly why markets move the way they do, as

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Speaker 15: I'm sure you know. And let's also just point to

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Speaker 15: the irony here that over the past six months to

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Speaker 15: a year, the markets have been so.

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Speaker 13: Fraught and volatile.

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Speaker 15: We've had huge wobbles over concerns that AI is just

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Speaker 15: completely overhyped, and then now we've got this you know,

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Speaker 15: trillion dollar wipeout for any stock that is potentially an

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Speaker 15: AI's path. So it's kind of like, I think we're

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Speaker 15: trying to figure out what the balance is here and

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Speaker 15: it could go either way.

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Speaker 3: Yeah, let's talk a little bit more about that anthropic

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Speaker 3: news in our last thirty seconds here. We have the

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Speaker 3: legal tool earlier this week and now a new AI

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Speaker 3: tool for financial research. Are we seeing the same kind

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Speaker 3: of reaction in the market to this latest tool for anthropic.

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Speaker 15: Yes, we are, but it's so strange because the actual

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Speaker 15: tool is not framed, even by Anthropic as being aimed

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Speaker 15: at finance as a general improvement on claud Opus, both

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Speaker 15: for enterprise workflows and for agents and for coding as well.

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Speaker 15: But I think somehow the market is just picked up

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Speaker 15: on the financial element and it's quite you know, these companies,

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Speaker 15: again going back to the unpredictability of all this. Anthropic

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Speaker 15: even inside the company didn't know that their other feature,

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Speaker 15: claud Code, was going to be so devastating to programming

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Speaker 15: and that so many programmers would use it. They didn't

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Speaker 15: even predict that the latest legal plugin that they announced

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Speaker 15: on Friday, was very quietly released, would have such an

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Speaker 15: impact on enterprise software shares. So again this is, you know,

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Speaker 15: these companies are coming up with these products so quickly,

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Speaker 15: and they're very productive company, but they don't know the

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Speaker 15: impact they're having.

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