1
00:00:02,520 --> 00:00:07,000
Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

2
00:00:09,960 --> 00:00:13,160
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

3
00:00:13,160 --> 00:00:15,520
Speaker 2: are the stories we're following today, Karen.

4
00:00:15,560 --> 00:00:18,000
Speaker 3: Global stocks are trading at a record as we close

5
00:00:18,040 --> 00:00:20,119
Speaker 3: out the trading week in the US. The S and

6
00:00:20,160 --> 00:00:23,440
Speaker 3: P five hundred enterst today's session at an all time high,

7
00:00:23,480 --> 00:00:27,800
Speaker 3: posting its first record close since late October. Bloomberg Markets

8
00:00:27,800 --> 00:00:31,440
Speaker 3: reporter Valerie Titel has more and what's leading the gains.

9
00:00:31,440 --> 00:00:35,159
Speaker 4: The equity market rally has been not really about the

10
00:00:35,200 --> 00:00:39,040
Speaker 4: tech trade, but more about value stocks over growth stocks.

11
00:00:39,400 --> 00:00:41,880
Speaker 5: Now, this has been a theme of the last month.

12
00:00:41,920 --> 00:00:45,199
Speaker 4: If we look over the last thirty trading days, the

13
00:00:45,280 --> 00:00:48,760
Speaker 4: Russell two thousand is up some six percent. Meanwhile the

14
00:00:48,840 --> 00:00:52,000
Speaker 4: SP five hundred and the Nasdaq are just up around

15
00:00:52,080 --> 00:00:55,200
Speaker 4: half of one percent. Yes, we did notch those record highs.

16
00:00:55,360 --> 00:00:57,760
Speaker 4: The new fresh record high the first one for the

17
00:00:57,800 --> 00:00:59,720
Speaker 4: SP five hundred since October.

18
00:00:59,720 --> 00:01:02,120
Speaker 5: But it's it's really been led by the.

19
00:01:02,120 --> 00:01:04,200
Speaker 4: Value stocks, and you have to start wondering whether this

20
00:01:04,240 --> 00:01:07,160
Speaker 4: is a trend that's going to start continuing into next year.

21
00:01:07,200 --> 00:01:09,160
Speaker 4: Do we continue to see some of the froth come

22
00:01:09,200 --> 00:01:11,800
Speaker 4: out of these AI valuations.

23
00:01:11,000 --> 00:01:14,440
Speaker 3: Bloomberg Markets reporter Valerie Titel notes the Russell two thousand

24
00:01:14,440 --> 00:01:17,600
Speaker 3: index of the smallest US stocks jumped one point two

25
00:01:17,720 --> 00:01:20,399
Speaker 3: percent yesterday to close it its own record high.

26
00:01:20,800 --> 00:01:23,160
Speaker 2: Well, Nathan, we're seeing weakness once again in an AI

27
00:01:23,280 --> 00:01:24,200
Speaker 2: related stock.

28
00:01:24,280 --> 00:01:25,679
Speaker 5: A day after Oracle.

29
00:01:25,360 --> 00:01:29,319
Speaker 2: Plunged almost eleven percent, shares a broadcommer down almost five

30
00:01:29,319 --> 00:01:32,399
Speaker 2: percent in early trading. The chipmaker's sales outlook for the

31
00:01:32,440 --> 00:01:36,920
Speaker 2: AI market failed to meet investors' lofty expectations. CEO howk

32
00:01:37,040 --> 00:01:40,560
Speaker 2: Ton said the company, which competes with Nvidia, has a

33
00:01:40,600 --> 00:01:44,039
Speaker 2: backlog of seventy three billion dollars in AI product orders,

34
00:01:44,080 --> 00:01:48,600
Speaker 2: disappointing some investors. He later clarified that figure as a minimum.

35
00:01:48,720 --> 00:01:52,880
Speaker 2: Bloomberg Intelligence senior analyst Kunjen Sabani says the market reaction

36
00:01:53,120 --> 00:01:53,960
Speaker 2: is surprising.

37
00:01:54,320 --> 00:01:57,920
Speaker 6: There seems to be an oral fatigue coming into the

38
00:01:57,960 --> 00:02:01,240
Speaker 6: AI space, but fundamentally, even we just look at Broadcom,

39
00:02:01,280 --> 00:02:04,559
Speaker 6: this was one of the most strongest AI semis report

40
00:02:04,640 --> 00:02:08,120
Speaker 6: this quarter. I mean, they beat the AI revenue numbers

41
00:02:08,240 --> 00:02:11,839
Speaker 6: for next quarter their fiscal one queue by almost one

42
00:02:11,840 --> 00:02:15,280
Speaker 6: point four billion, which is a twenty percent upside to

43
00:02:15,440 --> 00:02:15,799
Speaker 6: what the.

44
00:02:15,760 --> 00:02:20,600
Speaker 2: Street was Bloomberg Intelligences co John Sabani says Broadcom held

45
00:02:20,680 --> 00:02:23,919
Speaker 2: off on giving an annual AI revenue forecast.

46
00:02:24,200 --> 00:02:26,079
Speaker 3: Now, Karen, let's turn to the latest on the war

47
00:02:26,120 --> 00:02:28,680
Speaker 3: in Ukraine. President Trump says the US would be willing

48
00:02:28,720 --> 00:02:31,639
Speaker 3: to contribute assistance to Ukraine as part of a security

49
00:02:31,680 --> 00:02:34,680
Speaker 3: agreement to end the conflict. This comes as President Vladimir

50
00:02:34,760 --> 00:02:37,839
Speaker 3: Zelenski is proposing a referendum that would let Ukrainians vote

51
00:02:37,880 --> 00:02:40,760
Speaker 3: on whether to hand the Donbass region to Russia. We

52
00:02:40,800 --> 00:02:44,080
Speaker 3: get more from Bloomberg Senior europe correspondent Oliver Kruk.

53
00:02:44,440 --> 00:02:47,000
Speaker 7: This is a really interesting approach by Zelenski. I think

54
00:02:47,000 --> 00:02:49,200
Speaker 7: that it's sort of rooted in the fundamental idea that

55
00:02:49,280 --> 00:02:51,920
Speaker 7: Zelensky has adopted ever since that terrible meeting in the

56
00:02:51,919 --> 00:02:54,400
Speaker 7: White House back in February, which is basically, there are

57
00:02:54,440 --> 00:02:56,920
Speaker 7: no bad ideas out of Washington, DC. So something that

58
00:02:56,960 --> 00:03:00,560
Speaker 7: even appears intensely confrontational and something that could be collision

59
00:03:00,560 --> 00:03:03,760
Speaker 7: between the Ukrainians and the Americans, basically Zelenski tries to

60
00:03:03,840 --> 00:03:06,080
Speaker 7: use the momentum of that idea and put it in

61
00:03:06,120 --> 00:03:08,400
Speaker 7: a channel that is actually favorable and useful to him.

62
00:03:08,440 --> 00:03:10,760
Speaker 7: You saw that happen actually twice this week, once on

63
00:03:10,800 --> 00:03:13,919
Speaker 7: the question of holding elections within Ukraine, now talking about

64
00:03:13,960 --> 00:03:16,359
Speaker 7: the issue of Dombas. This is clever for two reasons

65
00:03:16,360 --> 00:03:19,280
Speaker 7: for Zelenski. The first, basically, it would prove that if

66
00:03:19,320 --> 00:03:21,920
Speaker 7: the Ukrainian people vote against it, and they say listen,

67
00:03:22,000 --> 00:03:24,520
Speaker 7: we are willing to endure this war, that Zelenski is

68
00:03:24,520 --> 00:03:26,600
Speaker 7: not the impediment to peace. It is the Ukrainian people

69
00:03:26,639 --> 00:03:28,600
Speaker 7: who have decided it. But also it puts on full

70
00:03:28,639 --> 00:03:30,920
Speaker 7: display that this is a democratic nation and that they

71
00:03:30,919 --> 00:03:33,560
Speaker 7: are going to the people to make the most difficult decisions.

72
00:03:33,600 --> 00:03:36,680
Speaker 3: Bloomberg's Oliver Crook says the US has dramatically scaled back

73
00:03:36,760 --> 00:03:39,600
Speaker 3: direct military aid for Ukraine under President Trump.

74
00:03:40,160 --> 00:03:43,040
Speaker 2: Well, the contingents between the US and Venezuela have hit

75
00:03:43,080 --> 00:03:45,920
Speaker 2: a new level this week, but the seizure of a

76
00:03:46,080 --> 00:03:49,480
Speaker 2: massive oil supertanker maybe just the beginning of a new

77
00:03:49,520 --> 00:03:53,960
Speaker 2: phase of pressure against Venezuelan and President Nicholas Maduro. President

78
00:03:54,000 --> 00:03:57,440
Speaker 2: Trump says the military campaign against alleged drug trafficking votes

79
00:03:57,440 --> 00:03:59,680
Speaker 2: from Venezuela has already been working.

80
00:04:00,240 --> 00:04:03,640
Speaker 8: If you look at the drug traffic. Drug traffic by

81
00:04:03,680 --> 00:04:07,080
Speaker 8: sea is down ninety two percent and nobody can figure

82
00:04:07,120 --> 00:04:08,880
Speaker 8: out who the eight percent is, because.

83
00:04:08,640 --> 00:04:09,560
Speaker 5: I have no idea.

84
00:04:10,040 --> 00:04:13,480
Speaker 8: Anybody getting involved in that right now is not doing well.

85
00:04:13,520 --> 00:04:14,880
Speaker 5: And we'll start that on land too.

86
00:04:15,120 --> 00:04:16,880
Speaker 8: It's going to be starting on land pretty soon.

87
00:04:17,279 --> 00:04:20,960
Speaker 2: President Trump spoke from the Oval Office. Sources down Bloomberg News.

88
00:04:20,960 --> 00:04:23,400
Speaker 2: The capture of the sanctioned oil vessel is meant to

89
00:04:23,440 --> 00:04:26,840
Speaker 2: deny Maduro an economic lifeline and force him to give

90
00:04:26,920 --> 00:04:27,440
Speaker 2: up power.

91
00:04:27,720 --> 00:04:29,080
Speaker 5: The Treasury Department has.

92
00:04:29,000 --> 00:04:31,840
Speaker 2: Already followed up the seizure with sanctions on six crude

93
00:04:31,880 --> 00:04:35,440
Speaker 2: oil tankers and for of Aduro's so called narco nephews.

94
00:04:35,600 --> 00:04:38,760
Speaker 3: Well, President Trump's warning to Venezuela came karen as he

95
00:04:38,800 --> 00:04:41,479
Speaker 3: handed a big win to the tech industry. The President

96
00:04:41,560 --> 00:04:44,400
Speaker 3: signed an executive order to go after state level regulation

97
00:04:44,560 --> 00:04:48,400
Speaker 3: of artificial intelligence. President Trump says the industry shouldn't have

98
00:04:48,480 --> 00:04:50,720
Speaker 3: to navigate a patchwork of AI rules.

99
00:04:51,120 --> 00:04:53,800
Speaker 8: You have to have a central source of approval when

100
00:04:53,839 --> 00:04:57,200
Speaker 8: they need approval, So things have to come to one source.

101
00:04:57,240 --> 00:05:01,160
Speaker 8: They can't go to California, New York, and various other places.

102
00:05:01,240 --> 00:05:03,839
Speaker 3: President Trump's order directs the Attorney General to set up

103
00:05:03,839 --> 00:05:08,000
Speaker 3: an AI Litigation Tax Force to sue states if they

104
00:05:08,040 --> 00:05:11,120
Speaker 3: have laws that are inconsistent with White House policy. It

105
00:05:11,160 --> 00:05:14,320
Speaker 3: also orders the Commerce Department to publish an evaluation of

106
00:05:14,400 --> 00:05:16,880
Speaker 3: onerous state laws within ninety days.

107
00:05:17,160 --> 00:05:19,800
Speaker 2: Let's turn to the economy now, Nathan. The Federal Reserve

108
00:05:19,839 --> 00:05:23,440
Speaker 2: Board of Governors has unanimously reappointed eleven of the Central

109
00:05:23,440 --> 00:05:27,520
Speaker 2: banks regional presidents to new five year terms. The reappointments

110
00:05:27,560 --> 00:05:30,520
Speaker 2: resolve for now a key question surrounding the future makeup

111
00:05:30,520 --> 00:05:32,760
Speaker 2: of the Central Banks policy making committee.

112
00:05:32,839 --> 00:05:36,040
Speaker 3: In Europe, Care and the UK economy disappointed again, contracting

113
00:05:36,120 --> 00:05:39,600
Speaker 3: in October for the fourth straight month without growth growth

114
00:05:39,640 --> 00:05:43,400
Speaker 3: domestic product fell one tenth of one percent. The UK's

115
00:05:43,400 --> 00:05:46,960
Speaker 3: GDP has only grown in one of the last seven months.

116
00:05:47,320 --> 00:05:49,760
Speaker 2: Well. Staying in Europe, Nathan shares a UBS trading at

117
00:05:49,800 --> 00:05:53,080
Speaker 2: a seventeen year high. A group of influential lawmakers proposed

118
00:05:53,080 --> 00:05:56,839
Speaker 2: watering down the capital demands that Switzerland wants to impose

119
00:05:56,960 --> 00:05:59,200
Speaker 2: on the bank and shares of UBS They're up more

120
00:05:59,240 --> 00:06:00,240
Speaker 2: than four percent.

121
00:06:00,640 --> 00:06:03,760
Speaker 3: And shares of Lululemon back here in the US, Karen

122
00:06:03,760 --> 00:06:06,200
Speaker 3: are up more than nine and a half percent. The

123
00:06:06,240 --> 00:06:10,120
Speaker 3: pricey yoga wear brand raised its full year outlook. Lululemon

124
00:06:10,160 --> 00:06:13,599
Speaker 3: also says CEO Calvin McDonald is stepping down as the

125
00:06:13,640 --> 00:06:17,040
Speaker 3: company looks to reignite growth amid pressure from competition and

126
00:06:17,240 --> 00:06:18,440
Speaker 3: Lululemon's founder.

127
00:06:18,880 --> 00:06:22,280
Speaker 2: Shares of Costco Nathan They rose more than one percent

128
00:06:22,360 --> 00:06:25,679
Speaker 2: in late trading. The country's biggest warehouse club operator posted

129
00:06:25,760 --> 00:06:29,880
Speaker 2: profit that beat analyst estimates. Analysts say it's a sign

130
00:06:29,960 --> 00:06:33,279
Speaker 2: that price sensitive shoppers are continuing to search for value and.

131
00:06:33,320 --> 00:06:35,200
Speaker 3: One more company to keep an eye on Karen. That

132
00:06:35,240 --> 00:06:38,679
Speaker 3: would be Uber. The ride share giant, says it expects

133
00:06:38,720 --> 00:06:42,159
Speaker 3: to offer Robotaxi in more than ten markets by the

134
00:06:42,240 --> 00:06:44,680
Speaker 3: end of the year. Uber is looking to become a

135
00:06:44,720 --> 00:06:47,560
Speaker 3: dominant force in an industry that it estimates will eventually

136
00:06:47,560 --> 00:06:49,760
Speaker 3: be worth at least one trillion dollars.

137
00:06:50,200 --> 00:06:52,680
Speaker 5: We spoke with Uber CEO Derek Kasershahi.

138
00:06:53,160 --> 00:06:56,679
Speaker 9: The technology is absolutely getting there. These are the robot

139
00:06:56,800 --> 00:07:01,560
Speaker 9: driver doesn't get tired, doesn't get distracted, and we very

140
00:07:01,640 --> 00:07:05,839
Speaker 9: much look forward to working with various authorities to introduce

141
00:07:05,960 --> 00:07:09,560
Speaker 9: raw chair into the markets. We're now live in four

142
00:07:09,640 --> 00:07:12,760
Speaker 9: markets now as we speak, in the US and in

143
00:07:12,800 --> 00:07:13,480
Speaker 9: the Middle East.

144
00:07:14,200 --> 00:07:16,960
Speaker 3: Ouber CEO Derek Kasershah. He says possible new.

145
00:07:16,840 --> 00:07:20,720
Speaker 5: Locations for Arlbo taxi services include Hong Kong and Japan.

146
00:07:21,280 --> 00:07:24,520
Speaker 5: For the full conversation, head to the Bloomberg Podcast channel

147
00:07:24,560 --> 00:07:26,920
Speaker 5: on YouTube.

148
00:07:28,720 --> 00:07:30,080
Speaker 2: And it's time now for a look at some of

149
00:07:30,120 --> 00:07:32,239
Speaker 2: the other stories making news in New York and around

150
00:07:32,280 --> 00:07:34,840
Speaker 2: the world. And for that we're joined by Bloomberg's Michael Barr.

151
00:07:34,880 --> 00:07:38,640
Speaker 10: Michael, good Morning, Good morning, Karen. Senators rejected a Democratic

152
00:07:38,720 --> 00:07:42,160
Speaker 10: bill to extend the Affordable Care Act subsidies for three

153
00:07:42,240 --> 00:07:46,000
Speaker 10: years and a Republican alternative that would have created new

154
00:07:46,120 --> 00:07:49,960
Speaker 10: health savings accounts. Millions of Americans will likely see a

155
00:07:50,000 --> 00:07:52,920
Speaker 10: steep rise in costs. At the beginning of the year,

156
00:07:53,400 --> 00:07:56,040
Speaker 10: Senate Democratic leader Chuck Schumer.

157
00:07:55,960 --> 00:08:00,000
Speaker 9: Senate Republicans just shove the American people off the side

158
00:08:00,200 --> 00:08:03,080
Speaker 9: of a cliff with no parachute and with an anchor

159
00:08:03,680 --> 00:08:04,559
Speaker 9: tied to their feet.

160
00:08:05,000 --> 00:08:08,320
Speaker 10: President Trump struck a bipartisan tone and teased a plan

161
00:08:08,400 --> 00:08:11,480
Speaker 10: to work on healthcare with subsidies set to expire on

162
00:08:11,560 --> 00:08:12,440
Speaker 10: January first.

163
00:08:12,640 --> 00:08:14,600
Speaker 8: I look forward to working with each and every one

164
00:08:14,600 --> 00:08:19,280
Speaker 8: of you in the coming year to make our nation stronger, safer, wealthier, healthier,

165
00:08:19,800 --> 00:08:22,320
Speaker 8: and I really believe we can work on healthcare.

166
00:08:21,920 --> 00:08:24,080
Speaker 5: Together and come up with something that's going to.

167
00:08:24,040 --> 00:08:29,400
Speaker 11: Be much better, much less expensive for the people, less expensive.

168
00:08:28,880 --> 00:08:29,400
Speaker 2: For our nation.

169
00:08:30,040 --> 00:08:33,000
Speaker 10: President Trump made his comments while hosting lawmakers at the

170
00:08:33,000 --> 00:08:36,120
Speaker 10: White House for the annual congressional ball ahead of Christmas.

171
00:08:36,600 --> 00:08:40,720
Speaker 10: Indiana Republican senators voted down a new congressional map created

172
00:08:40,760 --> 00:08:44,160
Speaker 10: to give the GOP and advantage in the upcoming twenty

173
00:08:44,240 --> 00:08:48,800
Speaker 10: twenty sixth election. Twenty one GOP senators joined ten Democrats

174
00:08:49,040 --> 00:08:52,960
Speaker 10: in voting against the map Thursday. Senate President pro Tem

175
00:08:53,200 --> 00:08:57,439
Speaker 10: Roderick Bray says while he wants a Republican majority in Congress,

176
00:08:57,600 --> 00:08:59,079
Speaker 10: this is not the way to do.

177
00:08:59,040 --> 00:09:01,440
Speaker 12: It, friends of opinion on how we get there, as

178
00:09:01,440 --> 00:09:04,960
Speaker 12: I have explained before, because there are some concerns that

179
00:09:05,080 --> 00:09:07,240
Speaker 12: going this route is not the best way to get

180
00:09:08,280 --> 00:09:11,160
Speaker 12: more conservative representation in Washington, d C. From the state

181
00:09:11,200 --> 00:09:11,920
Speaker 12: of Indiana.

182
00:09:12,000 --> 00:09:15,080
Speaker 10: President Trump has been urging Republicans to redraw their maps

183
00:09:15,120 --> 00:09:18,400
Speaker 10: to help the GOP maintain control of the House. The

184
00:09:18,480 --> 00:09:21,640
Speaker 10: Utah man charged with killing conservative activist Charlie Kirk has

185
00:09:21,640 --> 00:09:25,840
Speaker 10: made his first in person court appearance. Tyler Robinson's attorneys

186
00:09:25,880 --> 00:09:29,360
Speaker 10: are pushing to further limit media access, saying it could

187
00:09:29,360 --> 00:09:32,160
Speaker 10: interfere with his right to a fair trial. Global news

188
00:09:32,200 --> 00:09:34,400
Speaker 10: twenty four hours a day and whenever you want it

189
00:09:34,400 --> 00:09:37,840
Speaker 10: with the Bloomberg News Now Michael barn this is Bloomberg camt.

190
00:09:38,920 --> 00:09:42,120
Speaker 2: Thanks Michael all time now for our Bloomberg Sports update,

191
00:09:42,160 --> 00:09:44,200
Speaker 2: and for that we bring in John stash Hour.

192
00:09:44,559 --> 00:09:46,640
Speaker 11: Thank Darren good One. On Thursday night football in the

193
00:09:46,720 --> 00:09:49,160
Speaker 11: NFC South Tampa Bay and needing the wind to stay

194
00:09:49,160 --> 00:09:51,439
Speaker 11: in first place on the Bucks led the Falcons by

195
00:09:51,480 --> 00:09:54,800
Speaker 11: two touchdowns on the fourth quarter, back came Atlanta on

196
00:09:54,880 --> 00:09:57,400
Speaker 11: a Zane Gonzalez forty three yard field goal. At the end,

197
00:09:57,520 --> 00:10:00,560
Speaker 11: the Falcons won twenty nine to twenty eight. The Falcons

198
00:10:00,559 --> 00:10:02,640
Speaker 11: tight end Kyle Pitts had one hundred and sixty six

199
00:10:02,800 --> 00:10:06,920
Speaker 11: yards and three touchdowns. DJ Watt the Steelers pass rusher

200
00:10:07,080 --> 00:10:10,440
Speaker 11: hospitalized during this week. He has long discomfort, but they

201
00:10:10,440 --> 00:10:12,600
Speaker 11: say he still may play with a Monday night game

202
00:10:12,600 --> 00:10:14,560
Speaker 11: against Miami. That's your Bloomberg Sports update.

203
00:10:16,240 --> 00:10:17,000
Speaker 5: Stay with us.

204
00:10:17,120 --> 00:10:20,040
Speaker 2: More from Bloomberg Day Break coming up after.

205
00:10:19,720 --> 00:10:28,360
Speaker 1: This Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

206
00:10:28,400 --> 00:10:31,240
Speaker 1: and around the world on Bloomberg dot Com and the

207
00:10:31,280 --> 00:10:34,760
Speaker 1: Bloomberg Business app. This is Bloomberg Daybreak.

208
00:10:34,559 --> 00:10:35,720
Speaker 5: Good morning, I'm Nathan Hager.

209
00:10:35,800 --> 00:10:38,200
Speaker 3: Stocks look set to end the week near record territory,

210
00:10:38,240 --> 00:10:40,520
Speaker 3: but the AI trade may still be looking a bit

211
00:10:40,559 --> 00:10:44,120
Speaker 3: shaky after the latest results from Broadcom. The chip maker

212
00:10:44,160 --> 00:10:47,120
Speaker 3: came out with pretty strong earnings, but CEO hawk Ton

213
00:10:47,240 --> 00:10:49,400
Speaker 3: says it's tough to know what the future holds.

214
00:10:49,559 --> 00:10:52,839
Speaker 8: It's hard for me to pinpoint one twenty six is

215
00:10:52,880 --> 00:10:55,800
Speaker 8: going to look like precisely, so I'd rather not give

216
00:10:55,840 --> 00:10:57,120
Speaker 8: you guys any guidance.

217
00:10:57,160 --> 00:10:59,200
Speaker 4: And that's why we don't give you guys it, but.

218
00:10:59,320 --> 00:10:59,880
Speaker 5: We do give it.

219
00:11:00,080 --> 00:11:01,240
Speaker 10: Pull to one.

220
00:11:01,520 --> 00:11:04,600
Speaker 3: That was Broadcom CEO Hocton on the earnings call following

221
00:11:04,640 --> 00:11:07,199
Speaker 3: the third quarter results, and we're joined now by Bloomberg

222
00:11:07,200 --> 00:11:10,280
Speaker 3: Markets reporter Valerie Titel. And Valerie, it seems like the

223
00:11:11,040 --> 00:11:15,160
Speaker 3: AI order backlog in particular seemed to be a big

224
00:11:15,200 --> 00:11:18,040
Speaker 3: disappointment in particular for investors this morning.

225
00:11:18,520 --> 00:11:19,520
Speaker 5: Yeah, good morning, Nathan.

226
00:11:19,520 --> 00:11:22,240
Speaker 4: In broadcoms in case, it was an order backlog that

227
00:11:22,320 --> 00:11:24,800
Speaker 4: did disappoint investors as well as what you mentioned that

228
00:11:24,800 --> 00:11:27,880
Speaker 4: they failed to give a revenue forecast for twenty twenty

229
00:11:27,920 --> 00:11:31,920
Speaker 4: six when it comes to their revenue, sorry, their order backlog.

230
00:11:32,160 --> 00:11:35,320
Speaker 4: They said they only had seventy three billion in backlog

231
00:11:35,360 --> 00:11:38,400
Speaker 4: over the next six quarters. The CEO on the conference

232
00:11:38,440 --> 00:11:41,040
Speaker 4: call went to clarify later that that is a minimum

233
00:11:41,080 --> 00:11:44,440
Speaker 4: that they see, but still it's highlighting concerns, especially around

234
00:11:44,440 --> 00:11:47,480
Speaker 4: Broadcom about tightening profit margins, which has been a key

235
00:11:47,520 --> 00:11:51,720
Speaker 4: concern for this AI chip maker. Broadcom competes with the

236
00:11:51,800 --> 00:11:55,120
Speaker 4: likes of Nvidia for selling the most advanced AI chips

237
00:11:55,160 --> 00:11:57,560
Speaker 4: in that space. So again, some jitters in the tech

238
00:11:57,600 --> 00:11:59,240
Speaker 4: trade today, and we did see.

239
00:11:59,040 --> 00:11:59,920
Speaker 5: It yesterday as well.

240
00:12:00,320 --> 00:12:03,079
Speaker 3: Yeah, I mean, but this stock has rallied one hundred

241
00:12:03,120 --> 00:12:06,680
Speaker 3: and seventy percent this year. Is this a situation where

242
00:12:07,200 --> 00:12:09,199
Speaker 3: this might have been kind of priced to perfection when

243
00:12:09,240 --> 00:12:10,559
Speaker 3: it comes to Broadcom, You.

244
00:12:10,520 --> 00:12:11,760
Speaker 4: Know, that can be the case, But I think you

245
00:12:11,800 --> 00:12:14,240
Speaker 4: can argue that for a lot of these AI tech

246
00:12:14,280 --> 00:12:17,920
Speaker 4: stocks who are trying to guide the market on what

247
00:12:18,000 --> 00:12:20,160
Speaker 4: twenty twenty six could look like, there has been a

248
00:12:20,160 --> 00:12:22,960
Speaker 4: lot priced into many of these names, and generally there's

249
00:12:23,000 --> 00:12:24,719
Speaker 4: been a lot priced in to.

250
00:12:24,720 --> 00:12:25,440
Speaker 5: The tech sector.

251
00:12:25,640 --> 00:12:27,680
Speaker 4: You could see that as one of the reasons why

252
00:12:28,160 --> 00:12:30,679
Speaker 4: we've seen this last leg of the rally really not

253
00:12:30,920 --> 00:12:34,080
Speaker 4: be led by these megacap tech names. You know, Previously,

254
00:12:34,120 --> 00:12:36,480
Speaker 4: when we were notching all these record highs in the

255
00:12:36,600 --> 00:12:39,080
Speaker 4: S and P five hundred, tech was the main reason

256
00:12:39,160 --> 00:12:40,800
Speaker 4: behind it, and it seems like in the month of

257
00:12:40,840 --> 00:12:44,000
Speaker 4: November we've been able to notch a fresh record high

258
00:12:44,040 --> 00:12:47,200
Speaker 4: now without big tech behind it. Yesterday, take a look

259
00:12:47,200 --> 00:12:49,520
Speaker 4: at the Russell two thousand was up one point two

260
00:12:49,600 --> 00:12:51,840
Speaker 4: percent by the end of Wall Street closed, the NASDAC

261
00:12:52,040 --> 00:12:54,040
Speaker 4: was down around four tenths of one percent, and we

262
00:12:54,160 --> 00:12:56,680
Speaker 4: still notched a record high in the broad S and

263
00:12:56,720 --> 00:12:59,839
Speaker 4: P five hundred. This rotation has really been a key

264
00:13:00,120 --> 00:13:03,520
Speaker 4: art of December's price action. Nathan, take a look over

265
00:13:03,520 --> 00:13:06,480
Speaker 4: the last thirty trading days. The Russell two thousand is

266
00:13:06,559 --> 00:13:09,880
Speaker 4: up close to six percent NASDAC and the S and

267
00:13:09,920 --> 00:13:12,800
Speaker 4: P are up around five tenths of one percent, So

268
00:13:12,800 --> 00:13:15,560
Speaker 4: the sector rocitation is still continuing even in the futures

269
00:13:15,600 --> 00:13:16,280
Speaker 4: trade this morning.

270
00:13:16,480 --> 00:13:19,439
Speaker 5: What does it seem like is driving this rotation?

271
00:13:19,600 --> 00:13:23,120
Speaker 3: Is it skepticism around artificial intelligence or is it some

272
00:13:23,240 --> 00:13:24,840
Speaker 3: other f factor at play here?

273
00:13:25,160 --> 00:13:27,120
Speaker 4: Well, I just I want to add in it is December.

274
00:13:27,240 --> 00:13:30,520
Speaker 4: December is a weird month when it comes to positioning

275
00:13:30,760 --> 00:13:34,320
Speaker 4: and those wanting to cut losses or sorry, cut their

276
00:13:34,360 --> 00:13:36,880
Speaker 4: winners as soon as they start to see losses in them.

277
00:13:36,920 --> 00:13:41,480
Speaker 4: So perhaps this is just a reallocation going on in December,

278
00:13:41,640 --> 00:13:44,760
Speaker 4: and it's maybe caused a lot of those portfolio managers

279
00:13:44,800 --> 00:13:47,680
Speaker 4: to be in some pain on their calls on these sectors.

280
00:13:47,720 --> 00:13:50,040
Speaker 4: And so when people take profit, sometimes you see this

281
00:13:50,120 --> 00:13:53,760
Speaker 4: kind of price action headed into your end. But the

282
00:13:53,800 --> 00:13:56,600
Speaker 4: thing that makes me nervous, Nathan, is that next week

283
00:13:56,760 --> 00:14:00,319
Speaker 4: is a unusual third week of December because we have

284
00:14:00,880 --> 00:14:04,400
Speaker 4: so much data and three big central banks also making decisions.

285
00:14:04,440 --> 00:14:07,240
Speaker 4: We have the delayed non farm payroll release and the

286
00:14:07,280 --> 00:14:10,600
Speaker 4: delayed CPI which essentially are going to be treated by

287
00:14:10,640 --> 00:14:13,120
Speaker 4: the market as double reports. So we have a heck

288
00:14:13,160 --> 00:14:15,520
Speaker 4: of a lot of data before we close up twenty

289
00:14:15,559 --> 00:14:18,679
Speaker 4: twenty five. And perhaps you have portfolio managers out there

290
00:14:19,160 --> 00:14:21,960
Speaker 4: wanting to take profit on some of their winning trades,

291
00:14:22,000 --> 00:14:24,080
Speaker 4: and that would have been some of these big megacap

292
00:14:24,120 --> 00:14:25,320
Speaker 4: tech stocks of recent weeks.

293
00:14:26,240 --> 00:14:29,200
Speaker 2: This is Bloomberg day Break, your morning podcast on the

294
00:14:29,240 --> 00:14:32,760
Speaker 2: stories making news from Wall Street to Washington and beyond.

295
00:14:33,000 --> 00:14:35,400
Speaker 3: Look for us on your podcast feed by six am

296
00:14:35,440 --> 00:14:38,840
Speaker 3: Eastern each morning, on Apple, Spotify, or anywhere else you listen.

297
00:14:39,080 --> 00:14:41,920
Speaker 2: You can also listen live each morning starting at five

298
00:14:41,960 --> 00:14:44,680
Speaker 2: am Wall Street Time on Bloomberg eleven three to zero

299
00:14:44,680 --> 00:14:47,560
Speaker 2: in New York, Bloomberg ninety nine to one in Washington,

300
00:14:47,640 --> 00:14:51,560
Speaker 2: Bloomberg ninety two nine in Boston, and nationwide on serious

301
00:14:51,800 --> 00:14:53,480
Speaker 2: XM Channel one twenty one.

302
00:14:53,720 --> 00:14:54,080
Speaker 5: Plus.

303
00:14:54,080 --> 00:14:56,680
Speaker 3: Listen coast to coast on the Bloomberg Business app now

304
00:14:56,720 --> 00:14:59,320
Speaker 3: with Apple CarPlay and Android Atuto interfaces.

305
00:15:00,080 --> 00:15:03,360
Speaker 2: Get to subscribe to Bloomberg News Now. It's the latest news,

306
00:15:03,400 --> 00:15:06,400
Speaker 2: whenever you want it in five minutes or less. Search

307
00:15:06,400 --> 00:15:09,440
Speaker 2: Bloomberg News Now on your favorite podcast platform to stay

308
00:15:09,480 --> 00:15:12,720
Speaker 2: informed all day long. I'm Karen Moscow.

309
00:15:12,520 --> 00:15:13,520
Speaker 5: And I'm Nathan Hager.

310
00:15:13,640 --> 00:15:15,720
Speaker 3: Join us again tomorrow morning for all the news you

311
00:15:15,760 --> 00:15:18,280
Speaker 3: need to start your day right here on Bloomberg Day.

312
00:15:18,360 --> 00:15:18,480
Speaker 2: Ray