WEBVTT - Amazon Selloff on Massive Spend; Bitcoin Traders Buy Dip

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

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<v Speaker 2>Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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<v Speaker 2>are the stories we're following today.

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<v Speaker 3>Karen, we start with big tech and a big number,

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<v Speaker 3>six hundred and fifty billion dollars. That is how much

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<v Speaker 3>for the biggest US tech companies plan to spend this

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<v Speaker 3>year on capital expenditures. Bloomberg News has calculated the spending

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<v Speaker 3>plan by Alphabet Meta platforms, Microsoft and Amazon will set

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<v Speaker 3>a high water mark for spending by any single corporation

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<v Speaker 3>in any one of the last ten years. Shares in

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<v Speaker 3>Amazon fell after the e commerce joint announced its latest

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<v Speaker 3>earnings and plans to spend two hundred billion this year

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<v Speaker 3>on AI, data centers, chips and other equipment. CEO Andy

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<v Speaker 3>Jasse says the money will predominantly go to the company's

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<v Speaker 3>cloud unit, and most of that spending.

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<v Speaker 4>Will be for AI workloads.

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<v Speaker 3>Speaking on the earnings call, Jasse said, it will be

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<v Speaker 3>worth it will at this what's happening.

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<v Speaker 5>It's kind of unbelievable if you look at the demand

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

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<v Speaker 5>share of that demand is still you have to come

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<v Speaker 5>in the middle of that barbell and that will come

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<v Speaker 5>over time.

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<v Speaker 2>And Amazon shares are down almost eight percent after Andy

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<v Speaker 2>Jesse spoke with the spending you set the weigh on profits.

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<v Speaker 2>Punham Goil covers Amazon for Bloomberg Intelligence, they need.

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<v Speaker 6>To invest right. We know that Amazon has to continue

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<v Speaker 6>to invest in cloud services, it needs to invest in AI.

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<v Speaker 6>So there's a lot of catchup that needs to be

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<v Speaker 6>done here. I think the long run narrative here is

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<v Speaker 6>still good. The underlying results were solid across both aws

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<v Speaker 6>and retail.

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<v Speaker 2>And Bloomberg Intelligence analysts. Punum Goyle knows that some of

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<v Speaker 2>Amazon's capital expenditures will go toward its effort to compete

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<v Speaker 2>with SpaceX's Starlink Internet service by placing satellites in low

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<v Speaker 2>Earth orbit and.

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<v Speaker 3>Karen the AI disruption trade has the S and P

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<v Speaker 3>five hundred on track for its worst weeks. And it's

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<v Speaker 3>April and the risk off mood has extended to crypto

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

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<v Speaker 3>Johnky morning, Yeah.

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<v Speaker 7>Nathan, this is not unlike that deep seat sell off

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<v Speaker 7>a year ago. Investors haven't spooked by developments on a

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<v Speaker 7>couple of fronts. The rollout of those models from Anthropic

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<v Speaker 7>that threaten to make software services redundant, alongside the eye

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<v Speaker 7>watering spending plans of the big tech companies who are

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<v Speaker 7>just mentioning now the Tech having nasty Composite Index now

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<v Speaker 7>a three percent year to day loss. The risk off

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<v Speaker 7>mood it did extend to bitcoin. The selling picked up

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<v Speaker 7>the steam this week, in line with the unwinding of

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<v Speaker 7>leverage bets and broader market turbulence. No Bel laureate Paul

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<v Speaker 7>Krugman sees a possible crisis of faith in crypto.

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<v Speaker 8>I think it's a big wake up for people.

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<v Speaker 2>You know, maybe this isn't actually going to be an

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<v Speaker 2>enduring asset.

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<v Speaker 7>We'll sell off briefly dragged bitcoin to a more than

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<v Speaker 7>fifty percent retreat from the October peak. Just yesterday, investors

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<v Speaker 7>pulled four hundred and thirty four million dollars from US

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<v Speaker 7>exchange traded fund for bitcoin, and now this morning, stock

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<v Speaker 7>features are modestly higher and bitcoin is on four percent

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<v Speaker 7>close to sixty six thousand dollars a token. In New

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<v Speaker 7>York on John Tucker Bloomberg.

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

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<v Speaker 2>At Alman said it mediated indirect talks between Iran and

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<v Speaker 2>the United States Severtran's nuclear program.

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<v Speaker 6>In a post on x.

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<v Speaker 2>Oman said, it's Foreign minister met separately with Iranian Foreign

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<v Speaker 2>Minister Abbasaragachi, then with US MIDI Special Envoy Steve Wikoff

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

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<v Speaker 2>defense lead Beka Wasser tells Bloomberg Balance of Power. She

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<v Speaker 2>has some concerns.

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<v Speaker 8>I am most certainly not optimistic, and I think some

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<v Speaker 8>of that is because of the firepower that we've seen

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<v Speaker 8>massed in the region at this point in time. We've

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<v Speaker 8>also seen Iran engage in some risky behavior, whether that

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<v Speaker 8>is an attempt to seize a US flag tanker or

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<v Speaker 8>whether that is having a drone buzz near the US

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<v Speaker 8>carrier in the Middle East.

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<v Speaker 2>And Becca Wesser is defense lead for Bloomberg Economics. The

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<v Speaker 2>talks come after a chaotic week that initially saw plans

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<v Speaker 2>for regional countries to take part in talks in Turkey Karen.

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<v Speaker 3>President Trump is calling for the creation of a new

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<v Speaker 3>nuclear arms treaty with Russia as its existing New Start

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<v Speaker 3>agreement expires. A post on Truth Social the president writes quote.

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<v Speaker 3>Rather than extend New Start, we should have our nuclear

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<v Speaker 3>experts work on a new, improved, and modernized treaty that

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<v Speaker 3>can last long into the future. Former Republican Congressman Patrick

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<v Speaker 3>McHenry thinks it's a good idea.

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<v Speaker 9>I think we haven't addressed nuclear disarmament in over a

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

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<v Speaker 9>I think the complexity of this administration's foreign policy is

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<v Speaker 9>not well understood by the market. Everything is interconnected Russia,

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<v Speaker 9>the Middle of East, China, Russia, Ukraine, Middle East, China, Canada.

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<v Speaker 9>All the trade conversations, all the foreign policy and Department

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<v Speaker 9>of War actions, They're all connected.

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<v Speaker 3>Former Republican Congressman Patrick McHenry is now Bloomberg News contributor.

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<v Speaker 3>He spoke on Bloomberg's Bounce of Power as well, noting

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<v Speaker 3>that Newstart was the last remaining major arms control treaty

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<v Speaker 3>between the US and Russia.

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<v Speaker 2>Meanwhile, Nathan, a top Russian military intelligence officer, was wounded

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<v Speaker 2>in an assassination attempt in Moscow. According to the country's

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<v Speaker 2>Investigative Committee, Lieutenant General Vladimir Alexeyev was hospitalized after a

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

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<v Speaker 2>Alexeyev is first deputy head of a gru military intelligence agency.

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<v Speaker 3>Turning to Washington now Karen, President Trump is looking to

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

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<v Speaker 10>Starting tonight, dozens of the most commonly used prescription drugs

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<v Speaker 10>will be available at dramatic discounts for all consumers throughout

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<v Speaker 10>a new website is called trump rx dot gov.

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<v Speaker 3>Speaking at a primetime White House event, President Trump said

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<v Speaker 3>more than forty medications will be available on the site,

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<v Speaker 3>including Nova Nordisk's ozembic and wagov for one hundred and

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<v Speaker 3>ninety nine dollars, as well as emd Serono's fertility treatment.

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<v Speaker 10>For example, a single dose of the most common IVF

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<v Speaker 10>drug in the country, gonal F, will plummet from the

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<v Speaker 10>highest price in the developed world that we paid. The

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<v Speaker 10>United States was subsidizing everybody. We paid the highest to

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<v Speaker 10>the lowest price in the world.

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<v Speaker 3>President Trump's new website will get around the pharmacy benefit

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<v Speaker 3>managers that go between drug makers and insurance companies. Farmer

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<v Speaker 3>companies say the current system forces them to charge more

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<v Speaker 3>and limit patient access, but it remains to be seen

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<v Speaker 3>whether Trump RX will significantly bring down costs and entice

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<v Speaker 3>more Americans to buy direct rather than through insurance.

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<v Speaker 6>Well.

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<v Speaker 2>Staying with politics here, Nathan. The race in New Jersey

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<v Speaker 2>between a one time political director for Senator Bernie Sanders

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<v Speaker 2>and a former congressman was too early to call in

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<v Speaker 2>a special House Democratic primary for a seat that was

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<v Speaker 2>vacated after Mikey Cheryl was elected governor. Former Representative Tom

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<v Speaker 2>Melanowski started election night with a significant lead over Anna

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<v Speaker 2>Lilya Mahia, based largely on early results from mail in ballads.

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<v Speaker 2>The margin narrowed as results from votes cast that day.

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<v Speaker 2>We're tallied more than sixty one thousand votes counted. Mahia

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<v Speaker 2>leeds Melanowski by four hundred and eighty six, or less

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<v Speaker 2>than one percentage point.

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

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<v Speaker 3>the mother of NBC Today's Show host Savannah Kind of three,

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<v Speaker 3>who was last seen at her home Saturday night. Earlier

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<v Speaker 3>this week, Savannah made an emotional plea to her mother's

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

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<v Speaker 3>an appeal of his own.

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<v Speaker 11>This is Cameron Guthrie. I'm speaking for the Guthrie family.

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<v Speaker 11>Whoever is out there holding our mother, we want to

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<v Speaker 11>hear from you. We haven't heard anything directly. We need

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<v Speaker 11>you to reach out and we need a way to

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<v Speaker 11>communicate with you so we can move forward. But first

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<v Speaker 11>we have to know that you have our mom. We

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<v Speaker 11>went to talk to you and we are waiting for contact.

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<v Speaker 3>Nitharties in Arizona have not identified any suspects or persons

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<v Speaker 3>of interest, but tests show blood found on Nancy Guthrie's

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<v Speaker 3>front porch does match her DNA. Investigators have found no

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<v Speaker 3>proof that Savannah Guthrie's mother is still alive five days

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<v Speaker 3>after she was taken from her home in Tucson over

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<v Speaker 3>the weekend.

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<v Speaker 2>Time now for look at some of the other stories

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<v Speaker 2>making news in New York and around the world, and

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<v Speaker 2>from that, we're joined by Bloomberg's Michael Barr.

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<v Speaker 4>Michael, good morning, Good morning, Karen. The northeast, including New

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<v Speaker 4>York City. We'll get a brief touch of snow this

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<v Speaker 4>weekend before a frigid blast of Arctic air pushes through

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<v Speaker 4>the region. Bloomberg minegrologist Rob Carolyn has the latest.

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<v Speaker 12>Michael, We've got one more blast of arcticare to get

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<v Speaker 12>through here in the Tristate area before temperature start to

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<v Speaker 12>moderate during next week. National Weather Service has an extreme

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<v Speaker 12>cold warning and effect for the Tristate area from ten

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<v Speaker 12>am Saturday morning through one one pm Sunday afternoon. We're

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<v Speaker 12>also under a wind advisory Saturday morning through midnight on Sunday.

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<v Speaker 12>So not only do we get the Arctic air moving in,

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<v Speaker 12>but it's going to be a company by some very

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

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<v Speaker 12>At times Saturday night and Sunday morning, you'll feel like

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

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<v Speaker 4>Thank you, sir. Archbishop Designate Ron Hicks will officially take

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<v Speaker 4>over the Archdiocese of New York today. An installation mass

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<v Speaker 4>will formally mark the beginning of his leadership. Hicks spoke

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<v Speaker 4>at a news conference Thursday from Saint Patrick's Cathedral.

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<v Speaker 13>You're going to notice that I will reference the number

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<v Speaker 13>of time Pope Leo the fourteenth. I will strive always

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<v Speaker 13>to be obedient and respectful to him and also collaborate

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<v Speaker 13>with his vision.

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<v Speaker 4>Hicks succeeds Timothy Cardinal Dolan. Democratic lawmakers responded with anger

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<v Speaker 4>over reports that President Donald Trump told Senate Minority Leader

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<v Speaker 4>Chuck Schumer last month he would release sixteen billion dollars

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<v Speaker 4>in federal funds for the Gateway Tunnel project in exchange

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<v Speaker 4>for renaming of New York's Penn Station and Washington's Dulles

0:10:09.880 --> 0:10:15.080
<v Speaker 4>International Airport after him. According to several media outlets, Schumer

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<v Speaker 4>reportedly told the President that he did not have the

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<v Speaker 4>power to approve the request. The Gateway Development Commission has

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<v Speaker 4>warned that it must stop work today on the New

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<v Speaker 4>York New Jersey Tunnel project under the Hudson River unless

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<v Speaker 4>the Department of Transportation immediately releases federal funding tied to

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<v Speaker 4>the project. Global News twenty four hours a day and

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

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<v Speaker 4>Michael Barr, and this is Bloomberg here.

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<v Speaker 5>Well, thanks Michael.

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<v Speaker 2>A time now for our Bloomberg Sports update, and for

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<v Speaker 2>that we bring in John stash Hour.

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<v Speaker 14>It's darn NFL Awards night ahead of Sunday Super Bowl

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<v Speaker 14>the in San Francisco. Matthew Stafford named NFL MVP. The

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<v Speaker 14>Rams quarterback at age thirty seven through over forty seven

0:10:57.480 --> 0:11:01.760
<v Speaker 14>hundred yards forty six touchdowns. Garrett name defensive Player of

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<v Speaker 14>the Year after setting a new sacks record. Mike Rabel

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<v Speaker 14>name Coach of the Year. Sunday, he'll coach the Patriots

0:11:07.200 --> 0:11:10.960
<v Speaker 14>of the Super Bowl against Seattle. From baseball, Tarrek Scooble

0:11:11.040 --> 0:11:14.240
<v Speaker 14>won his arbitration case against the Detroit Tigers. He'll make

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<v Speaker 14>thirty two million. That's a Bloomberg Sports updates.

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<v Speaker 2>Stay with us. More from Bloomberg day Break coming up

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<v Speaker 2>after this.

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

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

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

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<v Speaker 3>Good morning on Nathan Hager. It is a staggering number.

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<v Speaker 3>Six hundred and fifty billion dollars is how much the

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<v Speaker 3>four biggest tech companies plan to spend this year in

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<v Speaker 3>the race for AI dominance. We learned last night Amazon

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<v Speaker 3>alone accounts for nearly a third of that at two

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<v Speaker 3>hundred billion, raising questions once again but for investors about

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<v Speaker 3>whether the payoff from AI is going to catch up

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<v Speaker 3>with all that spend. Joining us this morning is Parmie

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<v Speaker 3>Olsen Tech columnists for Bloomberg Opinion, these concerns you share. Parming,

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<v Speaker 3>good morning.

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<v Speaker 15>Hi, good morning.

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<v Speaker 10>Yeah.

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<v Speaker 15>I mean we've obviously been seeing big tech companies spending

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<v Speaker 15>a lot on AI and the infrastructure to build AI

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<v Speaker 15>over the last twelve to twenty four months, so this

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<v Speaker 15>is nothing new. But I think what we're really starting

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<v Speaker 15>to see and what really intrigues me about this is

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<v Speaker 15>this kind of almost an identity shift for these companies,

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<v Speaker 15>because if you think about why they're so valuable in

0:12:28.760 --> 0:12:32.040
<v Speaker 15>the first place, it's that they're asset light, right, like,

0:12:32.080 --> 0:12:34.840
<v Speaker 15>they have a lot of staff, and they maybe have

0:12:34.920 --> 0:12:37.520
<v Speaker 15>some data centers, but then they build this incredibly valuable

0:12:37.559 --> 0:12:41.400
<v Speaker 15>software and they have incredible margins. Now they're becoming these

0:12:41.600 --> 0:12:46.240
<v Speaker 15>kind of capital intensive infrastructure operators. They're almost like telecoms

0:12:46.320 --> 0:12:50.840
<v Speaker 15>now with all this CAPEC spending. So it does feel

0:12:50.880 --> 0:12:54.200
<v Speaker 15>like this is a gradual shift, and we're seeing it

0:12:54.240 --> 0:12:56.880
<v Speaker 15>continue to happen, and there's definitely going to be some

0:12:56.960 --> 0:12:58.880
<v Speaker 15>kind of questioning in the market about whether they deserve

0:12:58.920 --> 0:13:02.040
<v Speaker 15>these premium valuations when they are spending quite so much.

0:13:02.200 --> 0:13:04.679
<v Speaker 3>Yeah, and it's interesting to see how the reaction has

0:13:04.720 --> 0:13:08.400
<v Speaker 3>played out just through this earning season. When meta platforms

0:13:08.440 --> 0:13:11.000
<v Speaker 3>reported how much they were going to spend, the markets

0:13:11.040 --> 0:13:13.559
<v Speaker 3>seemed to like it. Not so much for the rest

0:13:13.559 --> 0:13:14.559
<v Speaker 3>of these names so far.

0:13:14.600 --> 0:13:15.439
<v Speaker 14>What do you make of that?

0:13:16.640 --> 0:13:19.480
<v Speaker 15>It's you know, with everything that's happened in the market

0:13:19.480 --> 0:13:21.640
<v Speaker 15>this past week, and we can talk about the trigger

0:13:21.679 --> 0:13:24.920
<v Speaker 15>from anthropic as well, it's so hard to you know,

0:13:25.280 --> 0:13:28.800
<v Speaker 15>identify exactly why markets move the way they do, as

0:13:28.840 --> 0:13:30.880
<v Speaker 15>I'm sure you know. And let's also just point to

0:13:30.920 --> 0:13:34.480
<v Speaker 15>the irony here that over the past six months to

0:13:34.559 --> 0:13:36.480
<v Speaker 15>a year, the markets have been so.

0:13:36.520 --> 0:13:37.560
<v Speaker 13>Fraught and volatile.

0:13:37.559 --> 0:13:41.560
<v Speaker 15>We've had huge wobbles over concerns that AI is just

0:13:41.600 --> 0:13:45.360
<v Speaker 15>completely overhyped, and then now we've got this you know,

0:13:45.720 --> 0:13:48.880
<v Speaker 15>trillion dollar wipeout for any stock that is potentially an

0:13:48.880 --> 0:13:52.079
<v Speaker 15>AI's path. So it's kind of like, I think we're

0:13:52.080 --> 0:13:54.480
<v Speaker 15>trying to figure out what the balance is here and

0:13:54.520 --> 0:13:55.400
<v Speaker 15>it could go either way.

0:13:55.679 --> 0:13:58.000
<v Speaker 3>Yeah, let's talk a little bit more about that anthropic

0:13:58.080 --> 0:14:00.280
<v Speaker 3>news in our last thirty seconds here. We have the

0:14:00.600 --> 0:14:03.520
<v Speaker 3>legal tool earlier this week and now a new AI

0:14:03.600 --> 0:14:06.160
<v Speaker 3>tool for financial research. Are we seeing the same kind

0:14:06.200 --> 0:14:09.480
<v Speaker 3>of reaction in the market to this latest tool for anthropic.

0:14:09.400 --> 0:14:13.480
<v Speaker 15>Yes, we are, but it's so strange because the actual

0:14:13.640 --> 0:14:17.760
<v Speaker 15>tool is not framed, even by Anthropic as being aimed

0:14:17.760 --> 0:14:21.120
<v Speaker 15>at finance as a general improvement on claud Opus, both

0:14:21.120 --> 0:14:26.040
<v Speaker 15>for enterprise workflows and for agents and for coding as well.

0:14:26.080 --> 0:14:28.280
<v Speaker 15>But I think somehow the market is just picked up

0:14:28.320 --> 0:14:32.080
<v Speaker 15>on the financial element and it's quite you know, these companies,

0:14:32.400 --> 0:14:35.280
<v Speaker 15>again going back to the unpredictability of all this. Anthropic

0:14:35.400 --> 0:14:38.640
<v Speaker 15>even inside the company didn't know that their other feature,

0:14:38.720 --> 0:14:42.520
<v Speaker 15>claud Code, was going to be so devastating to programming

0:14:42.560 --> 0:14:45.560
<v Speaker 15>and that so many programmers would use it. They didn't

0:14:45.600 --> 0:14:49.240
<v Speaker 15>even predict that the latest legal plugin that they announced

0:14:49.240 --> 0:14:52.000
<v Speaker 15>on Friday, was very quietly released, would have such an

0:14:52.040 --> 0:14:55.680
<v Speaker 15>impact on enterprise software shares. So again this is, you know,

0:14:55.800 --> 0:14:58.480
<v Speaker 15>these companies are coming up with these products so quickly,

0:14:58.560 --> 0:15:00.720
<v Speaker 15>and they're very productive company, but they don't know the

0:15:00.760 --> 0:15:01.600
<v Speaker 15>impact they're having.

0:15:03.520 --> 0:15:06.440
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