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

2
00:00:09,760 --> 00:00:12,240
Speaker 2: This is the b Big DAYBAQ podcast. Good Morning, It's

3
00:00:12,240 --> 00:00:15,440
Speaker 2: fight at the sixth of February. I'm Caroline Hepkat in London.

4
00:00:15,320 --> 00:00:19,160
Speaker 3: And I'm Stephen Caroline Brussels. Coming up today. Amazon joins

5
00:00:19,200 --> 00:00:22,760
Speaker 3: Big text tidal wave of cash, hoping to deliver AI

6
00:00:22,920 --> 00:00:26,160
Speaker 3: returns in a winner takes most market.

7
00:00:26,200 --> 00:00:30,600
Speaker 2: The UK Prime Minister Kis Starmer apologizes to Epstein's victims

8
00:00:30,840 --> 00:00:33,479
Speaker 2: as he seeks to turn the page on the crisis

9
00:00:33,520 --> 00:00:36,640
Speaker 2: engulfing his government over Peter Mandelson.

10
00:00:36,880 --> 00:00:41,680
Speaker 3: Plus Italy's richest family, Ferrero, wants to conquer American breakfast

11
00:00:41,720 --> 00:00:45,040
Speaker 3: tables and they're planning to use this weekend's Super Bowl

12
00:00:45,200 --> 00:00:45,720
Speaker 3: to do it.

13
00:00:46,159 --> 00:00:48,320
Speaker 4: Let's start with the roundup of our top stories.

14
00:00:48,600 --> 00:00:51,600
Speaker 3: Six hundred and fifty billion dollars. That's how much four

15
00:00:51,640 --> 00:00:54,720
Speaker 3: of the biggest US technology companies are planning to spend

16
00:00:54,760 --> 00:00:59,720
Speaker 3: on capital expenditure this year. Bloomberg has calculated the spending

17
00:00:59,760 --> 00:01:03,480
Speaker 3: plan and by alphabet meta, Microsoft and Amazon would set

18
00:01:03,480 --> 00:01:07,240
Speaker 3: a high watermark for capital spending by any single corporation

19
00:01:07,400 --> 00:01:10,680
Speaker 3: in any one of the past ten years. Shares and

20
00:01:10,720 --> 00:01:14,480
Speaker 3: Amazon dropped after the company yesterday announced its latest results

21
00:01:14,480 --> 00:01:17,360
Speaker 3: and plans to spend two hundred billion dollars this year

22
00:01:17,360 --> 00:01:21,559
Speaker 3: on data centers, chips, and other equipment. CEO Andy Jasse

23
00:01:21,760 --> 00:01:25,280
Speaker 3: said the money will predominantly go to the company's cloud unit,

24
00:01:25,560 --> 00:01:28,560
Speaker 3: and most of that spending would be for AI workloads.

25
00:01:28,920 --> 00:01:30,880
Speaker 3: Speaking on the earnings call, he said, it would be

26
00:01:30,880 --> 00:01:31,280
Speaker 3: worth it.

27
00:01:31,959 --> 00:01:35,200
Speaker 5: When I look at this what's happening. It's kind of

28
00:01:35,520 --> 00:01:38,039
Speaker 5: unbelievable if you look at the demand of what you're

29
00:01:38,040 --> 00:01:41,520
Speaker 5: seeing already with AI. But the lion's share of that

30
00:01:41,600 --> 00:01:43,800
Speaker 5: demand is still had to come in the middle of

31
00:01:43,800 --> 00:01:46,280
Speaker 5: that barbell, and that will come over time.

32
00:01:47,360 --> 00:01:50,640
Speaker 3: Amazon shares fell eleven percent and after hours trading after

33
00:01:50,680 --> 00:01:53,480
Speaker 3: Andy Jasse spoke with The spending set to weigh on

34
00:01:53,640 --> 00:01:57,320
Speaker 3: profits operating income at Amazon, and the current quarter is

35
00:01:57,320 --> 00:02:01,640
Speaker 3: now forecast to be below expectations at between sixteen point

36
00:02:01,680 --> 00:02:04,560
Speaker 3: five and twenty one point five billion dollars.

37
00:02:05,520 --> 00:02:05,680
Speaker 1: Well.

38
00:02:05,720 --> 00:02:09,520
Speaker 2: The latest plans for more cattle spending from US big

39
00:02:09,600 --> 00:02:13,120
Speaker 2: tech came as the nasat one hundred extended its deepest

40
00:02:13,160 --> 00:02:18,280
Speaker 2: slide since April. Software stocks extended their tumble after artificial

41
00:02:18,360 --> 00:02:23,000
Speaker 2: intelligence startup Anthropic rolled out a new model that's designed

42
00:02:23,040 --> 00:02:26,919
Speaker 2: to carry out financial research. It's the second time this

43
00:02:27,040 --> 00:02:31,200
Speaker 2: week that the company has jolted markets, underscoring the competitive

44
00:02:31,320 --> 00:02:33,120
Speaker 2: threat from the new technology.

45
00:02:34,000 --> 00:02:36,400
Speaker 3: Bitcoin hit a fresh low this morning of just above

46
00:02:36,440 --> 00:02:40,920
Speaker 3: sixty thousand dollars before recovering. At one point, the benchmark

47
00:02:40,960 --> 00:02:44,919
Speaker 3: cryptocurrency was worth less than half its value at its

48
00:02:44,960 --> 00:02:48,560
Speaker 3: October peak. Yesterday, bit quote fell by more than thirteen

49
00:02:48,600 --> 00:02:52,240
Speaker 3: percent and its largest single day drops, and sanbankman Freed's

50
00:02:52,440 --> 00:02:56,520
Speaker 3: FTX collapsed in twenty twenty two. Cryptocurrencies have been on

51
00:02:56,600 --> 00:03:00,360
Speaker 3: shaky ground ever since a brutal series of liquidations last

52
00:03:00,440 --> 00:03:04,000
Speaker 3: year sapped market confidence. The selling has picked up steam

53
00:03:04,080 --> 00:03:07,680
Speaker 3: this week as leveraged bets have been unwound and broader

54
00:03:07,800 --> 00:03:10,120
Speaker 3: market turbulence has hit crypto.

55
00:03:11,040 --> 00:03:15,120
Speaker 2: In political news, UK Prime Minister Kiss Starmer has apologized

56
00:03:15,160 --> 00:03:18,800
Speaker 2: for appointing Peter Mandelsson to a senior role despite his

57
00:03:18,960 --> 00:03:23,600
Speaker 2: links to disgraced financier Jeffrey Epstein. Speaking during an event

58
00:03:24,000 --> 00:03:28,919
Speaker 2: in England yesterday, the Prime Minister directly addressed Epstein's victims.

59
00:03:29,600 --> 00:03:33,480
Speaker 6: I am sorry, sorry for what was done to you,

60
00:03:34,000 --> 00:03:37,680
Speaker 6: Sorry that so many people with power failed you. Sorry

61
00:03:38,280 --> 00:03:42,760
Speaker 6: for having believed Mandelson's lives and appointed him. I'm sorry

62
00:03:42,760 --> 00:03:46,480
Speaker 6: that even now you're forced to watch this story unfold

63
00:03:46,880 --> 00:03:48,240
Speaker 6: in public once again.

64
00:03:49,600 --> 00:03:50,960
Speaker 4: Kis Starmer speaking then.

65
00:03:51,080 --> 00:03:55,880
Speaker 2: His apology follows a concession on Wednesday that material used

66
00:03:55,920 --> 00:03:59,080
Speaker 2: to vet Mandelssohn for the role of UK Ambassador to

67
00:03:59,080 --> 00:04:03,600
Speaker 2: the United States did contain details of his links to Epstein.

68
00:04:04,080 --> 00:04:07,440
Speaker 2: After the revelation, some Labour MPs helped force the government

69
00:04:07,480 --> 00:04:11,160
Speaker 2: to agree to release sensitive documents about the appointment to

70
00:04:11,600 --> 00:04:15,080
Speaker 2: the Cross party Intelligence and Security Committee for review.

71
00:04:15,840 --> 00:04:17,080
Speaker 4: A YouGov poll.

72
00:04:16,960 --> 00:04:21,520
Speaker 2: Released hours after Starmer's latest remarks showed fifty percent of

73
00:04:21,560 --> 00:04:25,600
Speaker 2: the British public believe the Prime Minister should resign.

74
00:04:25,360 --> 00:04:27,839
Speaker 3: To some earnings news now The French Bank Associated General

75
00:04:27,920 --> 00:04:30,000
Speaker 3: has announced a new share by back of almost one

76
00:04:30,000 --> 00:04:33,000
Speaker 3: and a half billion euros after its fourth quarter profits

77
00:04:33,040 --> 00:04:35,640
Speaker 3: beat estimates. Net income came in at one point four

78
00:04:35,640 --> 00:04:38,320
Speaker 3: to two billion euros, two hundred million higher than expected.

79
00:04:38,640 --> 00:04:41,520
Speaker 3: Self chan's performance was helped by lower than expected cost

80
00:04:41,640 --> 00:04:45,000
Speaker 3: and strength in its French retail bank. Blander's equity and

81
00:04:45,040 --> 00:04:48,160
Speaker 3: fixed income traders had a weaker quarter, both missing estimates.

82
00:04:49,120 --> 00:04:51,520
Speaker 2: The Bank of England's governor says that a fifty to

83
00:04:51,600 --> 00:04:54,279
Speaker 2: fifty bet on an interest rate cut next month is

84
00:04:54,560 --> 00:04:57,800
Speaker 2: not a bad place to be. Andrew Bailey was speaking

85
00:04:57,800 --> 00:05:01,799
Speaker 2: after the Central Bank's unexpectedly ti five to four vote

86
00:05:02,160 --> 00:05:04,560
Speaker 2: to hold interest rates yesterday.

87
00:05:04,839 --> 00:05:06,160
Speaker 4: Speaking to Bloomberg about the.

88
00:05:06,120 --> 00:05:08,680
Speaker 2: Decision, Bailey said that he is still looking for a

89
00:05:08,800 --> 00:05:10,920
Speaker 2: clearer picture of the economy.

90
00:05:11,720 --> 00:05:13,359
Speaker 7: We think inflations and are going to come down to

91
00:05:13,400 --> 00:05:15,080
Speaker 7: target sooner than we bought it would, I think the

92
00:05:15,120 --> 00:05:18,000
Speaker 7: spring sometime. But the real question now is is it

93
00:05:18,040 --> 00:05:20,320
Speaker 7: going to sustain? Is it going to be sustained? Because

94
00:05:20,360 --> 00:05:22,960
Speaker 7: that's our job and that's all to do with underlying

95
00:05:23,000 --> 00:05:26,159
Speaker 7: inflation and that's where you know, I sertainly think that

96
00:05:26,160 --> 00:05:29,360
Speaker 7: we do need we need some more evidence base to

97
00:05:29,520 --> 00:05:29,800
Speaker 7: out that.

98
00:05:31,240 --> 00:05:34,560
Speaker 2: Bank of England Governor Andrew Bailey was once again the

99
00:05:34,600 --> 00:05:37,720
Speaker 2: swing voter in choosing to hold interest rates at three

100
00:05:37,760 --> 00:05:41,000
Speaker 2: point seventy five percent, having voted to cut at the

101
00:05:41,080 --> 00:05:44,560
Speaker 2: last meeting in December. Yesterday, full members of the Monetary

102
00:05:44,600 --> 00:05:47,720
Speaker 2: Policy Committee voted to cut rates, which was more than

103
00:05:47,800 --> 00:05:50,440
Speaker 2: the two that economists were expecting.

104
00:05:51,279 --> 00:05:53,920
Speaker 3: In Frankfurt, the European Center Bank voted to keep interest

105
00:05:54,000 --> 00:05:57,560
Speaker 3: rates unchanged at two percent, as predicted by all economists

106
00:05:57,600 --> 00:06:01,120
Speaker 3: in Bloomberg survey following the decision to President, Christine Leguard

107
00:06:01,240 --> 00:06:05,480
Speaker 3: downplayed the recent rally in the euro, again, describing inflation

108
00:06:05,680 --> 00:06:06,920
Speaker 3: as being in a good place.

109
00:06:07,839 --> 00:06:12,760
Speaker 1: A stronger euro could bring inflation down beyond current expectations.

110
00:06:13,120 --> 00:06:17,240
Speaker 1: More volatile and risk averse financial markets could weigh on

111
00:06:17,279 --> 00:06:19,760
Speaker 1: demand and thereby also lower inflation.

112
00:06:21,440 --> 00:06:25,159
Speaker 3: Speaking during a press conference, Legard also told reporters that

113
00:06:25,200 --> 00:06:29,919
Speaker 3: Europe needs time to see AI related productivity gains. Questioned

114
00:06:29,960 --> 00:06:33,680
Speaker 3: on the impact of spending on artificial intelligence in the region,

115
00:06:33,760 --> 00:06:36,279
Speaker 3: she observed that it's happening as part of a wider

116
00:06:36,320 --> 00:06:39,159
Speaker 3: shift towards domestic momentum.

117
00:06:39,880 --> 00:06:44,200
Speaker 2: Iran's foreign minister has confirmed that nuclear talks with the

118
00:06:44,279 --> 00:06:48,000
Speaker 2: United States are scheduled to be held in Oman today.

119
00:06:48,240 --> 00:06:49,920
Speaker 4: Bloomberg's U and Pots has more.

120
00:06:50,560 --> 00:06:53,560
Speaker 8: Today's talks in Muscat mark the first public meeting between

121
00:06:53,600 --> 00:06:57,200
Speaker 8: Iranian and US officials since Tehran's violent suppression of mass

122
00:06:57,240 --> 00:07:00,480
Speaker 8: protests in the country last month. The summit ums as

123
00:07:00,480 --> 00:07:03,599
Speaker 8: President Trump calls for another nuclear agreement, a new deal

124
00:07:03,640 --> 00:07:07,280
Speaker 8: between the US and Russia. This after the new Strategic

125
00:07:07,400 --> 00:07:11,000
Speaker 8: Arms Reduction treaty known as New Start, signed in twenty

126
00:07:11,120 --> 00:07:15,360
Speaker 8: ten expired yesterday. Trump says the existing treaty was a

127
00:07:15,400 --> 00:07:19,600
Speaker 8: badly negotiated deal which was being, in his words, grossly violated.

128
00:07:20,200 --> 00:07:21,000
Speaker 4: Russia has worn.

129
00:07:21,040 --> 00:07:23,240
Speaker 8: The expiring of new Start means the two sides are

130
00:07:23,240 --> 00:07:25,840
Speaker 8: now quote free to choose their next steps.

131
00:07:26,280 --> 00:07:28,600
Speaker 4: In London, I'm you in parts of Bloomberg Radio.

132
00:07:29,120 --> 00:07:32,320
Speaker 2: And those are some of our top stories for you today.

133
00:07:32,560 --> 00:07:34,880
Speaker 2: Looking at markets, so the S and P five hundred

134
00:07:34,880 --> 00:07:37,560
Speaker 2: close down one point two percent. Yesterday the Nasdak fell

135
00:07:37,600 --> 00:07:39,840
Speaker 2: by one point four percent. So the NASDAK has now

136
00:07:39,880 --> 00:07:43,600
Speaker 2: suffered the worst three day routes since the April meltdown.

137
00:07:43,680 --> 00:07:47,880
Speaker 2: Amazon's shares tumbling eleven percent in extended trading this morning.

138
00:07:47,920 --> 00:07:50,600
Speaker 2: The costb is also lower, down one and a half

139
00:07:50,680 --> 00:07:53,480
Speaker 2: percent this morning. The Hank Saying index is down. But

140
00:07:53,640 --> 00:07:57,480
Speaker 2: elsewhere you're seeing some signs of stabilization. Maybe MSCI Asia

141
00:07:57,520 --> 00:08:01,440
Speaker 2: Pacific index is certainly flat, and what futures for Europe

142
00:08:01,480 --> 00:08:04,240
Speaker 2: are higher. USOX fifty futures up by just about a

143
00:08:04,280 --> 00:08:06,960
Speaker 2: tenth of one percent. You've got teny US yields at

144
00:08:06,960 --> 00:08:11,440
Speaker 2: trading at four nineteen. Bitcoin did plunge, It's rebounded somewhat.

145
00:08:11,440 --> 00:08:14,720
Speaker 2: It's trading above sixty five thousand dollars this morning, and

146
00:08:14,800 --> 00:08:17,120
Speaker 2: gold is flat. So that's the look at the markets

147
00:08:17,160 --> 00:08:20,240
Speaker 2: right now. In a moment, the AI spending race keeps

148
00:08:20,280 --> 00:08:22,320
Speaker 2: heating up. We'll dig into the latest announcements.

149
00:08:22,320 --> 00:08:26,920
Speaker 3: Plus, Italy's Ferrero family makes a bid for America's breakfast table.

150
00:08:27,440 --> 00:08:29,800
Speaker 3: But another story that we've been reading this morning, what

151
00:08:29,840 --> 00:08:33,120
Speaker 3: would you expect from a holiday experience than costs twenty

152
00:08:33,200 --> 00:08:37,040
Speaker 3: nine thousand dollars a night. I think I'd want someone

153
00:08:37,080 --> 00:08:39,800
Speaker 3: to carry me from home essentially and bring me the

154
00:08:39,960 --> 00:08:42,280
Speaker 3: entire way, and it's just sort of like like a long,

155
00:08:42,600 --> 00:08:43,480
Speaker 3: a long shed.

156
00:08:43,520 --> 00:08:44,880
Speaker 4: You the whole toss.

157
00:08:46,840 --> 00:08:49,840
Speaker 3: This is a story about the ultra luxury hotel brand,

158
00:08:49,920 --> 00:08:53,000
Speaker 3: a man that's testing out a new cruise, the Amungatti,

159
00:08:53,080 --> 00:08:55,840
Speaker 3: will set sail next year. It'll have ninety four guests

160
00:08:55,840 --> 00:08:58,280
Speaker 3: on a seven hundred million dollars super yacht. It has

161
00:08:58,320 --> 00:09:02,280
Speaker 3: two helipads and ivy tree moments in the spa. Now

162
00:09:03,080 --> 00:09:06,520
Speaker 3: included in this is breakfast in your suite. Right, you

163
00:09:06,559 --> 00:09:08,880
Speaker 3: have concerurge service that can get you tickets to high

164
00:09:08,880 --> 00:09:12,680
Speaker 3: profile events, but it doesn't include any wine or the

165
00:09:12,720 --> 00:09:15,240
Speaker 3: cost of eating in any of the ship's restaurants. Or

166
00:09:15,320 --> 00:09:19,840
Speaker 3: three of the four ship restaurants as well. Oh, that

167
00:09:19,880 --> 00:09:22,200
Speaker 3: will come as a shock to many. I mean that's

168
00:09:22,240 --> 00:09:26,240
Speaker 3: twenty one thousand pounds to anyone who operates in Sterling. Yes,

169
00:09:26,280 --> 00:09:29,640
Speaker 3: I'd expect a lot of pampering too. I think it's

170
00:09:29,640 --> 00:09:33,000
Speaker 3: a really interesting story. It's an interesting bet, isn't it

171
00:09:33,040 --> 00:09:34,600
Speaker 3: by the Ammand group. I mean it's not the only

172
00:09:34,640 --> 00:09:42,360
Speaker 3: brand that's testing ultra high end experiential holidays. I mean

173
00:09:42,480 --> 00:09:44,559
Speaker 3: Order to Express is doing the same thing. So it's

174
00:09:44,600 --> 00:09:49,839
Speaker 3: like trains, hotels now boats. Will that work? Will that work?

175
00:09:49,920 --> 00:09:51,640
Speaker 3: Is the key question. That's what our colleague Frank Golden

176
00:09:51,640 --> 00:09:53,760
Speaker 3: has been writing about for Bloomberg Pursuits, and she says

177
00:09:53,800 --> 00:09:56,640
Speaker 3: even big fans of this brand that don't seem to

178
00:09:56,640 --> 00:10:00,480
Speaker 3: be huge translating into bookings for this new crews. How

179
00:10:00,559 --> 00:10:04,320
Speaker 3: the company says sales are exceptional, but it's speaking to

180
00:10:04,320 --> 00:10:06,880
Speaker 3: the travel consultants that Fran has doesn't seem to be

181
00:10:06,920 --> 00:10:09,520
Speaker 3: a huge uptake so far, So one to watch. We'll

182
00:10:09,520 --> 00:10:11,280
Speaker 3: put a link to the story in our podcast show notes.

183
00:10:12,400 --> 00:10:14,560
Speaker 3: Let's bring you more now in the latest massive spending

184
00:10:14,600 --> 00:10:19,000
Speaker 3: announcement on AI, this time from Amazon. That's after a

185
00:10:19,000 --> 00:10:21,720
Speaker 3: week where fears over AI disruption of cous major turmoil

186
00:10:21,720 --> 00:10:23,600
Speaker 3: on markets. We've got our tech editor of Lad salv

187
00:10:23,640 --> 00:10:26,000
Speaker 3: Off with us for more. Vlad, good to talk to you.

188
00:10:26,040 --> 00:10:30,679
Speaker 3: So Amazon adding two hundred billion dollars to spending this year,

189
00:10:30,840 --> 00:10:33,480
Speaker 3: that comes after the string of announcements. How significant is

190
00:10:33,480 --> 00:10:35,240
Speaker 3: what we heard from Amazon first of all? And how

191
00:10:35,240 --> 00:10:36,719
Speaker 3: did you to go down with investors?

192
00:10:38,080 --> 00:10:42,880
Speaker 9: I mean, it is completely unprecedented. It's ebex on a

193
00:10:42,920 --> 00:10:46,880
Speaker 9: scale that needs historic precedents. Some of our colleagues in

194
00:10:46,920 --> 00:10:49,200
Speaker 9: the US tried to put this in some sort of

195
00:10:49,240 --> 00:10:52,560
Speaker 9: reasonable context and they went back to the railroad age,

196
00:10:53,120 --> 00:10:57,240
Speaker 9: that level of investment, that level of infrastructure development, and

197
00:10:57,280 --> 00:10:59,320
Speaker 9: honestly is the sort of spending that is in line

198
00:10:59,360 --> 00:11:02,320
Speaker 9: with those twins nine thousand dollars a night holidays. There

199
00:11:02,400 --> 00:11:06,400
Speaker 9: is nothing like it that was previously scene. Understandably, the

200
00:11:06,440 --> 00:11:09,960
Speaker 9: market finally found the level at which it's spooked by

201
00:11:10,000 --> 00:11:15,200
Speaker 9: the excess spending Amazon and extended trading dropped before Google

202
00:11:15,240 --> 00:11:17,640
Speaker 9: announced one hundred and eighty five billion dollars of its

203
00:11:17,640 --> 00:11:21,600
Speaker 9: own capital expending plan for the coming year. Humulatively, together

204
00:11:21,640 --> 00:11:24,200
Speaker 9: with Microsoft and Meta, we're looking at more than six

205
00:11:24,280 --> 00:11:27,520
Speaker 9: hundred billion dollars to be spent over the coming year,

206
00:11:27,760 --> 00:11:30,560
Speaker 9: which is excellent news for video because they will get

207
00:11:30,600 --> 00:11:33,560
Speaker 9: the bulk of those orders you're talking about Nvidia AI chips.

208
00:11:33,840 --> 00:11:37,120
Speaker 9: But it's also worth mentioning there is some nuance here

209
00:11:37,160 --> 00:11:40,400
Speaker 9: because Google, for its own sake, it develops its own

210
00:11:40,480 --> 00:11:43,880
Speaker 9: TPUs tensor processing units, which are competitors to in video,

211
00:11:44,160 --> 00:11:46,480
Speaker 9: So some of that spending for Google in particular is

212
00:11:46,520 --> 00:11:48,960
Speaker 9: going to go toward its own chip making as well.

213
00:11:50,320 --> 00:11:53,040
Speaker 2: Yeah, it's fascinating. I mean, the two hundred billion dollars,

214
00:11:53,120 --> 00:11:55,360
Speaker 2: it's hard to get your mind around, but it's certainly

215
00:11:55,720 --> 00:11:59,960
Speaker 2: well well above the entire annual budget for education in Britain,

216
00:12:00,320 --> 00:12:02,760
Speaker 2: so that kind of gives you an idea of just

217
00:12:02,800 --> 00:12:07,119
Speaker 2: the start. It also comes after similar huge spending announcements

218
00:12:07,120 --> 00:12:11,320
Speaker 2: from Alphabet, Meta and Microsoft. So how should we see

219
00:12:11,440 --> 00:12:14,440
Speaker 2: the size of these announcements as a whole.

220
00:12:16,640 --> 00:12:19,520
Speaker 9: Well, it's very interesting because if Amazon had been the

221
00:12:19,600 --> 00:12:21,960
Speaker 9: first to come out with that two hundred billion dollar figure,

222
00:12:22,440 --> 00:12:25,559
Speaker 9: it may be the case that Google and Microsoft might

223
00:12:25,600 --> 00:12:28,079
Speaker 9: not have taken a dive quite as much as they did.

224
00:12:28,160 --> 00:12:31,000
Speaker 9: Each of those figures because of this particular timing was

225
00:12:31,040 --> 00:12:33,320
Speaker 9: a shock and they were succeeded by a larger figure.

226
00:12:34,160 --> 00:12:37,160
Speaker 9: The competitive relationship between these companies is the thing that

227
00:12:37,200 --> 00:12:39,679
Speaker 9: most people are still looking out for and watching for,

228
00:12:39,840 --> 00:12:43,560
Speaker 9: because the thesis is still that it's a win and

229
00:12:43,600 --> 00:12:46,560
Speaker 9: take or win and take takes most is how one

230
00:12:46,600 --> 00:12:51,600
Speaker 9: analyst put it when it comes to AI. So Microsoft's

231
00:12:51,640 --> 00:12:55,680
Speaker 9: executives metas Mark Huckerberg, they've spoken already about this idea

232
00:12:55,720 --> 00:12:58,680
Speaker 9: that the risk is you might invest too little rather

233
00:12:58,720 --> 00:13:02,360
Speaker 9: than too much. And to date, at least again the

234
00:13:02,440 --> 00:13:04,800
Speaker 9: investor community in Wall Streets seem to now be a

235
00:13:04,840 --> 00:13:07,679
Speaker 9: little bit spooked by the level of investment. But today

236
00:13:07,800 --> 00:13:10,640
Speaker 9: the belief as being along the lines of venture capital.

237
00:13:11,040 --> 00:13:13,720
Speaker 9: It's you can't spend too much. You have to get

238
00:13:13,720 --> 00:13:16,520
Speaker 9: the biggest lines of what seemed to be a multi

239
00:13:16,600 --> 00:13:18,040
Speaker 9: trillion dollar pie to come.

240
00:13:19,160 --> 00:13:21,440
Speaker 3: Okay, this is all happening at a time when we've

241
00:13:21,480 --> 00:13:25,080
Speaker 3: been rocked this week by what the potential for AI

242
00:13:25,160 --> 00:13:28,040
Speaker 3: disruption could do to different sectors of the economy. We've

243
00:13:28,040 --> 00:13:31,240
Speaker 3: had another announcement for anthropic of a new AI till,

244
00:13:31,320 --> 00:13:34,800
Speaker 3: this time for financial research. Talk to us about the

245
00:13:34,800 --> 00:13:37,040
Speaker 3: reaction that we've seen to this. Is it similar to

246
00:13:37,080 --> 00:13:39,280
Speaker 3: the legal till that was announced that caused the sell

247
00:13:39,320 --> 00:13:42,440
Speaker 3: off earlier this week, not at all.

248
00:13:42,840 --> 00:13:46,280
Speaker 9: This has been much more tempered, I would say. In

249
00:13:46,320 --> 00:13:49,400
Speaker 9: both cases, we've had so little time to do any

250
00:13:49,480 --> 00:13:52,800
Speaker 9: testing at all, and even in the first one, most

251
00:13:52,800 --> 00:13:56,000
Speaker 9: analysts agree that the reaction was too strong. It was

252
00:13:56,000 --> 00:13:59,160
Speaker 9: effectively people were looking for some sort of trigger event

253
00:13:59,320 --> 00:14:02,160
Speaker 9: to get them to sell software stocks because they were

254
00:14:02,200 --> 00:14:05,520
Speaker 9: seen as endangered by AI and the influx of AI.

255
00:14:06,000 --> 00:14:07,600
Speaker 10: And it's worth burning mind.

256
00:14:07,679 --> 00:14:11,520
Speaker 9: These are things that deal with compliance, legal matters and

257
00:14:11,559 --> 00:14:14,720
Speaker 9: so on, and the idea that those will be replaced

258
00:14:15,440 --> 00:14:18,520
Speaker 9: overnight or anywhere even over the course of the next

259
00:14:18,520 --> 00:14:22,080
Speaker 9: few years seems highly unlikely anthropic. It's worth burying mind.

260
00:14:22,280 --> 00:14:25,160
Speaker 9: It still uses Workday for its hiring platform. It still

261
00:14:25,240 --> 00:14:28,640
Speaker 9: uses a lot of enterprise software because those things have

262
00:14:28,760 --> 00:14:32,280
Speaker 9: been tested and shown to work at scale, They've been

263
00:14:32,320 --> 00:14:35,920
Speaker 9: shown to be legally compliant, and when that's your job

264
00:14:36,040 --> 00:14:38,360
Speaker 9: is on the line, you're not going to overnight swap

265
00:14:38,400 --> 00:14:40,440
Speaker 9: those out for something that you haven't tested over the

266
00:14:40,520 --> 00:14:41,960
Speaker 9: course of months and even years.

267
00:14:42,760 --> 00:14:45,840
Speaker 2: Yes, interesting, Flad, thank you so much for being with

268
00:14:46,000 --> 00:14:49,920
Speaker 2: us Tech editor Lad Savo for always with interesting thoughts

269
00:14:50,000 --> 00:14:54,280
Speaker 2: and Vlad and our global team covering technology have a

270
00:14:54,320 --> 00:14:56,880
Speaker 2: lot more for You can sign up for our daily

271
00:14:57,080 --> 00:15:00,960
Speaker 2: Tech in Depth newsletter. Go to Blimberg do com Newsletters.

272
00:15:01,080 --> 00:15:03,240
Speaker 2: We'll also put a link to that in our show notes.

273
00:15:03,280 --> 00:15:08,040
Speaker 2: For more, stay with us. More from Bloomberg dayba Cube

274
00:15:08,120 --> 00:15:11,400
Speaker 2: coming up after this now.

275
00:15:11,400 --> 00:15:14,640
Speaker 3: The Italian billionaire behind the Ferrero Empire is making a

276
00:15:14,680 --> 00:15:18,240
Speaker 3: major push into American breakfast tables, and he's using the

277
00:15:18,320 --> 00:15:22,280
Speaker 3: Super Bowl to do it. Giovanni Ferrero's family group owns

278
00:15:22,320 --> 00:15:26,160
Speaker 3: products like Natella, Kinder and of course Ferrero Rocher, but

279
00:15:26,200 --> 00:15:28,720
Speaker 3: they've also acquired some of America's best known food brands,

280
00:15:28,760 --> 00:15:32,240
Speaker 3: including Kellogg's. Our own reporter, Flavio Ratandi, joins us now

281
00:15:32,240 --> 00:15:36,160
Speaker 3: for more. Flavia, good morning. What is driving Ferrero's expansion

282
00:15:36,280 --> 00:15:37,560
Speaker 3: in the US right now?

283
00:15:37,920 --> 00:15:42,200
Speaker 11: Well, good morning, germanil I would say that the expansion

284
00:15:42,360 --> 00:15:48,680
Speaker 11: in the States Dotella's maker our Ferrero started years ago

285
00:15:48,920 --> 00:15:53,720
Speaker 11: with Jovanni Ferrero, a er, let's say, all the Ferrero Empire,

286
00:15:53,800 --> 00:15:56,960
Speaker 11: but had a definitely an important push in the last

287
00:15:57,480 --> 00:16:00,640
Speaker 11: a few months after the acquisition of the.

288
00:16:00,600 --> 00:16:01,840
Speaker 10: K logs serials.

289
00:16:02,000 --> 00:16:06,160
Speaker 11: The idea is just to really try to enter that

290
00:16:06,280 --> 00:16:10,360
Speaker 11: particularly segment. Is you see the breakfast segment in the US,

291
00:16:10,480 --> 00:16:14,320
Speaker 11: which Ferraro things has not you know, has a lot

292
00:16:14,360 --> 00:16:17,480
Speaker 11: of potential for them. Just to think that, you know,

293
00:16:17,880 --> 00:16:22,440
Speaker 11: in the States, our cereals are present like the ninety

294
00:16:22,480 --> 00:16:27,120
Speaker 11: percent of the American households. So thanks to Kelloggs, that

295
00:16:27,200 --> 00:16:31,920
Speaker 11: can really try to expand it then further and to

296
00:16:32,080 --> 00:16:35,720
Speaker 11: probably present of some of the products, some of the

297
00:16:35,760 --> 00:16:39,800
Speaker 11: more premium let's say, Ferrero products that are really popular

298
00:16:40,080 --> 00:16:44,760
Speaker 11: in Europe in Italy particular, but not definitely that present

299
00:16:45,360 --> 00:16:51,080
Speaker 11: yet in the US. We had an exclusive interview with

300
00:16:51,400 --> 00:16:57,040
Speaker 11: the financial officer of Ferrero, Daniel Martinez Carectero.

301
00:16:58,160 --> 00:17:00,160
Speaker 10: It says that yes, Cyril has.

302
00:17:00,160 --> 00:17:03,400
Speaker 11: Penetration on more than ninety percent US household Can you

303
00:17:03,480 --> 00:17:08,320
Speaker 11: imagine those its own words, how important it is for

304
00:17:08,400 --> 00:17:11,080
Speaker 11: a consumer this company to be present in that moment,

305
00:17:11,760 --> 00:17:16,880
Speaker 11: and call Logs is said, give us the door, an

306
00:17:16,960 --> 00:17:19,800
Speaker 11: important door to enter that market.

307
00:17:20,520 --> 00:17:23,879
Speaker 2: Yeah, that's interesting, and of course there's a US twist

308
00:17:23,880 --> 00:17:26,359
Speaker 2: to some of the products that are being offered. They

309
00:17:26,400 --> 00:17:31,480
Speaker 2: are launching Netella peanuts. Why why not correct?

310
00:17:31,560 --> 00:17:31,960
Speaker 10: Correct?

311
00:17:32,160 --> 00:17:34,640
Speaker 11: Well, they have been trying, they told us, they've been

312
00:17:34,680 --> 00:17:38,320
Speaker 11: trying to find the right formula for years. They are

313
00:17:38,520 --> 00:17:43,280
Speaker 11: super specific about They being super specific about trying to

314
00:17:43,480 --> 00:17:47,600
Speaker 11: get the right formula, the right taste. So something that

315
00:17:47,720 --> 00:17:51,240
Speaker 11: is basically tastes like the original, not a lot of one,

316
00:17:51,400 --> 00:17:54,480
Speaker 11: you know, that has a dominance of has nuts, but

317
00:17:54,800 --> 00:17:59,080
Speaker 11: with the peanuts in order to please, you know, the

318
00:17:59,119 --> 00:18:03,919
Speaker 11: American consumer, trying to appeal to the American taste. And

319
00:18:03,960 --> 00:18:07,639
Speaker 11: they say they finally find what they happy with this formula,

320
00:18:07,960 --> 00:18:11,920
Speaker 11: So they're launching it in April. Apparently they already had

321
00:18:11,960 --> 00:18:16,160
Speaker 11: some good feedback from retailers, from the people who tested it,

322
00:18:17,119 --> 00:18:21,959
Speaker 11: and as Thomas need, the global president, Nortella told us

323
00:18:22,840 --> 00:18:26,040
Speaker 11: in a different in a separate interview, the goal is

324
00:18:26,080 --> 00:18:29,720
Speaker 11: to create something a product that becomes a staple in

325
00:18:29,800 --> 00:18:33,240
Speaker 11: North American household, something that you can expect to see

326
00:18:33,600 --> 00:18:36,800
Speaker 11: on every kitchen shelf across the region. So something that

327
00:18:36,960 --> 00:18:40,280
Speaker 11: is basically ready tradition in Europe that it might become

328
00:18:40,760 --> 00:18:43,440
Speaker 11: a tradition in North America as well.

329
00:18:44,080 --> 00:18:46,040
Speaker 3: Have you tried it, You think it could work in Europe?

330
00:18:46,680 --> 00:18:48,760
Speaker 11: Well, I think in Europe, but they will still prefer

331
00:18:48,840 --> 00:18:49,640
Speaker 11: the original one.

332
00:18:49,800 --> 00:18:52,480
Speaker 10: I mean, the taste is very similar, to be honest, but.

333
00:18:52,480 --> 00:18:54,879
Speaker 11: I think that at the moment to the idea is

334
00:18:55,040 --> 00:18:57,439
Speaker 11: just to use it for US consumer and I think

335
00:18:57,480 --> 00:18:59,960
Speaker 11: it makes sense right through, you know, at the moment,

336
00:19:00,520 --> 00:19:04,240
Speaker 11: keeping the original one in let's say, the other market,

337
00:19:04,440 --> 00:19:08,280
Speaker 11: the more mature and traditional markets for Ferrero.

338
00:19:08,119 --> 00:19:10,199
Speaker 3: Talk to us about the Super Bowl, adds this is

339
00:19:10,200 --> 00:19:12,520
Speaker 3: a really important part of the strategy of pushing into

340
00:19:12,520 --> 00:19:14,800
Speaker 3: the US. We've watched the kender Bino one, by the way,

341
00:19:14,840 --> 00:19:17,000
Speaker 3: which I actually quite enjoyed. But they're going to be

342
00:19:17,040 --> 00:19:19,920
Speaker 3: advertising both Calogs and kender Bueno during the Super Bowl.

343
00:19:19,960 --> 00:19:21,120
Speaker 3: Why all right?

344
00:19:21,320 --> 00:19:23,240
Speaker 10: Correct? But this is actually think about it.

345
00:19:23,400 --> 00:19:27,800
Speaker 11: The fact that you know, Kellots has been not present

346
00:19:28,359 --> 00:19:32,680
Speaker 11: in a Super Bowl, you know, Super Bowl commercial since

347
00:19:32,720 --> 00:19:36,240
Speaker 11: twenty nineteen, so they're back, and now they're back under

348
00:19:36,280 --> 00:19:40,000
Speaker 11: the name of Ferrero. So they're presenting that they presenting

349
00:19:40,040 --> 00:19:44,120
Speaker 11: a kindom Bueno. As I said, it's a very popular

350
00:19:44,440 --> 00:19:48,400
Speaker 11: product and bar in Europe, definitely not well known in US.

351
00:19:48,560 --> 00:19:50,840
Speaker 11: For that for them will be a great push of course,

352
00:19:51,560 --> 00:19:54,359
Speaker 11: to be present and choose the raising brain for a

353
00:19:54,480 --> 00:19:58,719
Speaker 11: Super Bowl is also a sign of the company, who

354
00:19:58,800 --> 00:20:02,920
Speaker 11: say response to t tumors evolving health concern They will

355
00:20:02,960 --> 00:20:05,800
Speaker 11: be styled the Star Trek act. William Shatner who is

356
00:20:05,960 --> 00:20:13,479
Speaker 11: ninety four presenting the you know, raising brain and you know,

357
00:20:13,920 --> 00:20:15,720
Speaker 11: just endorsing.

358
00:20:16,920 --> 00:20:19,320
Speaker 10: The message of try to.

359
00:20:19,440 --> 00:20:24,480
Speaker 11: Get Americans fiber, to fill the Americans fiber gap, basically

360
00:20:25,160 --> 00:20:27,760
Speaker 11: just trying to do it more in a healthy way.

361
00:20:28,520 --> 00:20:32,120
Speaker 2: The Trump administration does have this idea, this push to

362
00:20:32,160 --> 00:20:35,520
Speaker 2: make America healthy again. So I suppose how is Ferrero

363
00:20:35,720 --> 00:20:39,000
Speaker 2: adapting to that, to the pressure around ingredients and also

364
00:20:39,160 --> 00:20:39,920
Speaker 2: some nutrition.

365
00:20:40,680 --> 00:20:44,280
Speaker 11: Of course, I think the main thing that came from

366
00:20:44,280 --> 00:20:47,439
Speaker 11: the conversation that I had with a CFO was that,

367
00:20:48,200 --> 00:20:50,480
Speaker 11: of course they're aware of this. Of course they will

368
00:20:51,440 --> 00:20:54,200
Speaker 11: try to respond to all the guidelines coming from the US,

369
00:20:54,240 --> 00:20:57,840
Speaker 11: but basically in Europe or what they always done was

370
00:20:57,960 --> 00:21:01,400
Speaker 11: to try to, for example, to present lotos nexts. Think

371
00:21:01,440 --> 00:21:05,600
Speaker 11: about ferrerosche think about others' nexts. They are individually rapped,

372
00:21:05,680 --> 00:21:10,880
Speaker 11: individually rubbed portions. So with the kind of limited calories intake.

373
00:21:11,520 --> 00:21:15,280
Speaker 11: This is the idea of saying, listen, of course you

374
00:21:15,359 --> 00:21:18,800
Speaker 11: are to eat healthy in a healthy way, but if

375
00:21:18,800 --> 00:21:21,200
Speaker 11: you want a treat to try to be responsible when

376
00:21:21,200 --> 00:21:23,440
Speaker 11: you eat in and try to you know, just soap

377
00:21:23,680 --> 00:21:26,679
Speaker 11: a little intake of calories and be happy with that.

378
00:21:27,600 --> 00:21:30,320
Speaker 3: This is Bloomberg Daybreak Europe, your morning brief on the

379
00:21:30,400 --> 00:21:33,440
Speaker 3: stories making news from London to Wall Street and beyond.

380
00:21:33,800 --> 00:21:37,760
Speaker 2: Look for us on your podcast feed every morning, on Apple, Spotify,

381
00:21:37,840 --> 00:21:39,920
Speaker 2: and anywhere else you get your podcasts.

382
00:21:39,960 --> 00:21:43,000
Speaker 3: You can also listen live each morning on London Dab Radio,

383
00:21:43,040 --> 00:21:45,640
Speaker 3: the Bloomberg Business app, and Bloomberg dot Com.

384
00:21:45,800 --> 00:21:48,560
Speaker 2: Our flagship New York station, is also available on your

385
00:21:48,560 --> 00:21:53,280
Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

386
00:21:53,520 --> 00:21:54,840
Speaker 2: I'm Caroline Hepcare and.

387
00:21:54,760 --> 00:21:57,440
Speaker 3: I'm Stephen Carroll. Join us again tomorrow morning for all

388
00:21:57,440 --> 00:21:59,840
Speaker 3: the news you need to start your day, right here

389
00:22:00,040 --> 00:22:01,280
Speaker 3: on Bloomberg day Break Europe.

390
00:22:03,000 --> 00:22:09,120
Speaker 7: M mm hmm