WEBVTT - Putin Warns Russia Won’t Stop; Apple & Alphabet in Blockbuster AI Talks

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan

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<v Speaker 1>Hager and I'm Karen Moscow. Here are the stories we're

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<v Speaker 1>following today.

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<v Speaker 2>We begin with politics around the world. A defiant Vladimir

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<v Speaker 2>Putin says Russia will not be stopped from pursuing its goals.

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<v Speaker 2>That's after Putin swept to a record victory in a

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<v Speaker 2>presidential election whose outcome was predetermined. Putin, who is seventy

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<v Speaker 2>one years old and had no credible opponent, spoke after

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<v Speaker 2>results showed him with more than eighty seven percent support

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<v Speaker 2>from voters, and he now gets another six years as president.

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<v Speaker 2>And we get more from Bloomberg's Rosalind Matheson.

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<v Speaker 3>For him, having those two numbers that he can talk about,

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<v Speaker 3>which is the overall win rate for him, but also

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<v Speaker 3>the turnout across Russia is certainly something that he is touting.

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<v Speaker 3>But his speech itself was quite defined again talking to

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<v Speaker 3>those messages he's been saying for a while to people

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<v Speaker 3>inside Russia, the sense that Russia is under siege from

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<v Speaker 3>the outside, fundamentally under attack from the West, and that

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<v Speaker 3>he's the only person who can help Russia stand proudly

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<v Speaker 3>again those words that he said, people want to suppress us.

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<v Speaker 1>They've not succeeded. They won't succeed now.

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<v Speaker 2>Bloomberg's Ros Mathieson says turnout from three days of voting

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<v Speaker 2>was more than seventy four percent. That's the highest since

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<v Speaker 2>Boris Yeltsen became president in nineteen ninety one after the

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<v Speaker 2>collapse of the Soviet Union.

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<v Speaker 1>Now Nathan the latest on the war in the Middle East.

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<v Speaker 1>Israeli Prime Minister Benjamin Nettan Yeah, who is pushing back

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<v Speaker 1>on Senate Majority Leader Chuck Schumer's call for an Israel election,

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<v Speaker 1>And Bloomberg's Ed Baxter has the story.

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<v Speaker 4>Matt Yahoo first says the aid issue to Gaza is

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<v Speaker 4>complicated because when it does get in, Hamas salutes it

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<v Speaker 4>and uses it for its own gain. And on CNN

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<v Speaker 4>he says majority of Israeli support the government anyway.

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<v Speaker 5>I think what he said is totally inappropriate. It's inappropriate

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<v Speaker 5>to goe to a sister democracy and try to replace

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<v Speaker 5>the elected leadership there. That's something that Israel Israeli public

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<v Speaker 5>does on its own, and we're not a banana republic.

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<v Speaker 4>Ntt Yahu also says its forces are trying to be careful,

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<v Speaker 4>but that the move to remove Hamas will continue Ed

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<v Speaker 4>Baxter Bloomberg Radio.

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<v Speaker 2>All right, Ed, thank you. Sticking with geopolitics, Secretary of

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<v Speaker 2>State Anthony Blincoln is warning the disinformation is threatening this

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<v Speaker 2>year's free and fair elections around the world.

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<v Speaker 6>As authoritarian and repressive regimes deploy technologies to undermine democracy

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<v Speaker 6>and human rights.

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<v Speaker 7>We need to.

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<v Speaker 6>Ensure that technology sustains and supports democratic values and norms.

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<v Speaker 2>Speaking in South Korea at the Third Summit for Democracy,

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<v Speaker 2>Secretary Blincoln seid authoritarian governments like China and Russia will

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<v Speaker 2>try to leverage generative AI technologies to meddle in democratic

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<v Speaker 2>elections this year, including in the US and the UK.

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<v Speaker 1>Well another political news Nathan Former President Donald Trump held

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<v Speaker 1>a rally over the weekend in Dayton, Ohio for Republican

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<v Speaker 1>Senate candidate Bernie Moreno. Threatens to impose one hundred percent

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<v Speaker 1>tariffs on Chinese cars made in Mexico if he's elected.

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<v Speaker 1>He went on to see this, now.

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<v Speaker 8>If I don't get elected, it's going to be a

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<v Speaker 8>bloodbath for the whole That's going to be the least

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<v Speaker 8>of it.

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<v Speaker 9>It's going to be a blood bath for the country.

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<v Speaker 10>That'll be the least of it.

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<v Speaker 1>Democrats were quick to s he's on those comments. Former

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<v Speaker 1>House Speaker and Nancy Pelosi reacted on the CNN State

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<v Speaker 1>of the Union, we just have to win this election.

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<v Speaker 1>Because he's even predicting a bloodbath.

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<v Speaker 11>What does that mean He's going to exact a bloodbath.

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<v Speaker 1>There's something wrong here. A Republican Congressman, Mike Turner says

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<v Speaker 1>the former president was not predicting political violence.

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<v Speaker 12>The president's statements concerning bloodbath were about what would happen

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<v Speaker 12>in the auto industry if actually the Chinese manufacturers who

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<v Speaker 12>are coming into Mexicogo were permitted to import into the

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<v Speaker 12>United States.

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<v Speaker 1>Congressman Mike Turner made those comments on EBC's This Week

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<v Speaker 1>Heard Every Sunday on Bloomberg Radio Now.

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<v Speaker 2>Karen Too a Bloomberg News exclusive. Apple is in talks

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<v Speaker 2>to build Google's Gemini artificial intelligence engine into the iPhone.

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<v Speaker 2>Sources say the two companies are in active negotiations to

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<v Speaker 2>let Apple licensed Gemini Google set of generative AI models

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<v Speaker 2>to power some new features coming to iPhone software this year.

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<v Speaker 2>Bloomberg technology reporter Mark German says the deal would shake

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<v Speaker 2>up the artificial intelligence world.

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<v Speaker 11>This would be a blockbuster agreement that has the potential

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<v Speaker 11>to transform this still growing AI industry. Apple has been

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<v Speaker 11>working on several new AI tools and services for iosaighteen

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<v Speaker 11>effects of iPhone software update. Those are going to be

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<v Speaker 11>based on Apple's homegrown AI models that Apple needs a

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<v Speaker 11>partner for generative AI, that is the AI that all

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<v Speaker 11>of us have been talking about for months.

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<v Speaker 2>Bloomberg's Mark German says the deal would expand the two

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<v Speaker 2>company search partnership as well. For years, Google's paid Apple

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<v Speaker 2>billions to make its search engine the default option in

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<v Speaker 2>the Safari web browser on iPhone and other devices. Shares

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<v Speaker 2>of Alphabet are up more than two percent in the

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<v Speaker 2>early trade, while Apple is hired by a half percent.

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<v Speaker 1>Well, we turn to the economy now, Nathan the Fed.

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<v Speaker 1>It leads a busy week for global policy decisions, and

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<v Speaker 1>we get a preview from Bloomberg's Michael McKee.

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<v Speaker 10>It's a big week for central bankers and those who

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<v Speaker 10>invest on them. The Bank of Japan is the main event.

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<v Speaker 10>Its governors have been inching ever closer to raising interest

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<v Speaker 10>rates for the first time since two thousand and seven.

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<v Speaker 10>While they may not go that far this week, they

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<v Speaker 10>could end the purchase of stockytfs for their balance sheet

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<v Speaker 10>or suggest the end of yield curve control as a

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<v Speaker 10>rate strategy. Either could have a major impact on the

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<v Speaker 10>en dollar rate. The Fed isn't going to move rates,

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<v Speaker 10>but investors will be watching to see if US Central

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<v Speaker 10>Bank officials increase their inflation forecasts or decrease the number

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<v Speaker 10>of rate cuts they put into their dot plot. The

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<v Speaker 10>Bank of England is also on hold. Growth has picked

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<v Speaker 10>up an inflation come down some, but markets don't see

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<v Speaker 10>an immediate rate cut on the horizon. Michael McKee, Bloomberg Radio.

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<v Speaker 2>All right, Mike, thanks, We got some new economic data

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<v Speaker 2>out of China. Industrial output and investment grew more strongly

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<v Speaker 2>than at the start of the year. Bloomberg Daybreak Asia

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<v Speaker 2>anchor Brian Curtis has more from Hong Kong.

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<v Speaker 8>Factory output rose seven percent in January and February from

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<v Speaker 8>the same period last year, and that was faster than

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<v Speaker 8>an estimate of five point two percent. Fixed asset investment

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<v Speaker 8>grew four point two percent, also better than forecast. Now,

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<v Speaker 8>those numbers suggest the economy is gaining some traction. On

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<v Speaker 8>the other hand, consumer spending is proving somewhat more elusive.

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<v Speaker 8>Retail sales up five and a half percent, roughly in line.

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<v Speaker 8>Consumer confidence is still weighed down by uncertainties over income

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<v Speaker 8>in Hong Kong. Brian Curtis, Bloomberg Radio.

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<v Speaker 1>All right, Brian, thank you, and it's time now for

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<v Speaker 1>a look at some of the other stories making news

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<v Speaker 1>in New York and around the world. For that, we're

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<v Speaker 1>joined by Bloomberg's Michael Barr. Michael, good morning, Good morning Karen.

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<v Speaker 13>Today the Supreme Court, we'll hear arguments in the National

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<v Speaker 13>Rifle Association versus the Vello. The NRA alleges that the

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<v Speaker 13>New York State Department of Finance Services violated the group's

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<v Speaker 13>right to freedom of speech by urging banks and insurance

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<v Speaker 13>companies to cut ties with the group. The question is

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<v Speaker 13>whether a state government regulator can tell state banks and

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<v Speaker 13>insurance companies not to underwrite insurance contracts for members because

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<v Speaker 13>the risks presented by school shootings and the bad pr

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<v Speaker 13>that it brings. One person is dead, two other people

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<v Speaker 13>are in stable condition after shots were fired in Jacksonville Beach, Florida.

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<v Speaker 13>Jacksonville Beach Mayor Christine Hoffman, this.

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<v Speaker 7>Is player's weekend at Saint Patrick's Day. It's spring break.

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<v Speaker 7>We have a lot going on out here, so the

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<v Speaker 7>fact that we had a couple of bad actors out

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<v Speaker 7>here that really made a dangerous situation for everyone is

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<v Speaker 7>extremely tragic.

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<v Speaker 13>Police say they are looking for multiple suspects after one

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<v Speaker 13>or more of the shooters opened fire in a crowded

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<v Speaker 13>outdoor area. The White House is urging the Senate to

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<v Speaker 13>pass a bill that would force the sale of TikTok.

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<v Speaker 13>The measure passed in the House with support from lawmakers

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<v Speaker 13>and both parties. TikTok is owned by Chinese parent company

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<v Speaker 13>bike Dance. Supporters of the bill say it would protect

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<v Speaker 13>the data of TikTok's more than one hundred and fifty

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<v Speaker 13>million users in the US from Chinese Community Party influence.

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<v Speaker 13>But Democratic Congressman Rocana, who represents Silicon Valley and voted

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<v Speaker 13>against TikTok bill, said concerns about CCP influence are misguided.

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<v Speaker 9>Bike Dance is a Chinese company. It has sixty percent

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<v Speaker 9>international investors, including KKR and General Atlantic. Three of the

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<v Speaker 9>five board members are Americans. They have data that currently

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<v Speaker 9>Oracle is managing in Texas.

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<v Speaker 13>Congressman ConA spoke on ABC's This Week Heard Sundays on Bloomberg.

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<v Speaker 13>The Biden administration is rolling out an executive order to

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<v Speaker 13>strengthen women's health research standards across federal agencies. The National

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<v Speaker 13>Science Foundation and Department of Health and Human Services are

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<v Speaker 13>instructed to research ways to use artificial intelligence toward advancing

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<v Speaker 13>women's health research. It also directs the HHS to expand

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<v Speaker 13>data collection on women's midlife health and mental clause related research.

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<v Speaker 13>Australians will soon be able to enjoy twenty six weeks

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<v Speaker 13>of paid parental leave. Trade Union's president Michelle O'Neil SAIDs

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<v Speaker 13>it's a win win situation.

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<v Speaker 1>If you're able to stop work and receive pay, you're

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<v Speaker 1>more likely to stay connected to your workplace.

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<v Speaker 13>The new deal will be gradually introduced over the next

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<v Speaker 13>three years. Global News twenty four hours a day, whenever

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<v Speaker 13>you want it with Bloomberg News Now. I'm Michael Barr.

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<v Speaker 13>This is Bloomberg.

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<v Speaker 1>Karen, Sorry, Michael, thank you. It's time now for the

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<v Speaker 1>Bloomberg Sports Update, brought to you by Tri State Audi,

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<v Speaker 1>and for that we bring in John stash Hour. John,

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<v Speaker 1>good morning, Good morning. Karen.

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<v Speaker 14>Thrilling finished to the players Championship if any champs. Scottie

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<v Speaker 14>Scheffler went out early, caught fire shot sixty four, got

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<v Speaker 14>to twenty under part to take the leader, then waited

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<v Speaker 14>to see if anyone could catch them. Three golfers went

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<v Speaker 14>to a seventy second hole, one shot behind it in

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<v Speaker 14>a birdie. All three settled for parts, including Wyndham Clark,

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<v Speaker 14>who's pot was seemingly in the hole, and then it

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<v Speaker 14>was in Scheffler, the first ever repeat winner.

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<v Speaker 15>I needed some help obviously going in today if I

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<v Speaker 15>wanted to win the tournament, and I felt like if

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<v Speaker 15>I could go out and shoot a good, good round

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<v Speaker 15>on the front nine, I could put myself in it

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<v Speaker 15>as long as you know, one of them didn't shoot

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<v Speaker 15>you know, four or five hundred on the front as well.

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<v Speaker 15>And so the birdie on nine was huge, and you know,

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<v Speaker 15>I was right right in the tournament the whole back nine.

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<v Speaker 14>Meanwhile, a meeting planned for today is sit down between

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<v Speaker 14>the PGA Tour players board that includes Tiger Woods and

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<v Speaker 14>the Saudi Yassir Al Ramayan, who heads the fund that

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<v Speaker 14>becks the Live Tour. That deal struck several months ago

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<v Speaker 14>between the two tours not yet official. Tennis Carlos alcaraz

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<v Speaker 14>Strait set in Dadil Medvedev won at Indian Wells for

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<v Speaker 14>the second straight year. Igishyontec took the women's finally, and

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<v Speaker 14>CAA tournament field is set defending champion yukon the top

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<v Speaker 14>overall seat. Saint John's didn't make it. The Bubbles shrunk

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<v Speaker 14>as four conference tournaments were won by teams unexpectedly that

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<v Speaker 14>hurt the Red Storm, who then chose not to play

0:10:59.200 --> 0:11:02.120
<v Speaker 14>the consolation in it at the Garden Rangers with the

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<v Speaker 14>Islanders five to two with five different goal scorers. The

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<v Speaker 14>Devil's lost three one at Vegas, Nets lost in overtime

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<v Speaker 14>at San Antonio. The rookie Victor Weimbinyana scored thirty three

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<v Speaker 14>at fifteen rebounds. The Celtics crushed the Wizards. Nick's played

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<v Speaker 14>tonight at Golden State Nicks for two and zero. On

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<v Speaker 14>this road trip, Jalen Brunson has scored forty five and

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<v Speaker 14>forty two points. Yankees lost the Red Sox twelve to six.

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<v Speaker 14>The Sock scored nine runs in the first inning. John

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<v Speaker 14>Stash Edward Bloomberg Sports.

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<v Speaker 2>I want to get you set for a trading week

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<v Speaker 2>that'll be dominated by central bank policy decisions around the world,

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<v Speaker 2>not the least of which coming from the Federal Reserve.

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<v Speaker 2>We're joined now by Lori Calvacina, ahead of US Equity

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<v Speaker 2>Strategy at RBC Capital Markets. Great to speak with you

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<v Speaker 2>as always, Lourie. It's going to be a very busy week,

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<v Speaker 2>but I want to get right first to your latest

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<v Speaker 2>note looking at energy stocks as potential outperformers in this rally.

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<v Speaker 2>Can you get into that a little bit for us?

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<v Speaker 16>Sure, So thanks for having me as always, And look,

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<v Speaker 16>I think there's just a lot going on in the

0:11:58.880 --> 0:12:01.800
<v Speaker 16>energy space right now. Is obviously got some heightened geopolitical

0:12:01.840 --> 0:12:04.240
<v Speaker 16>tensions and the backdrop the ail trices on the move.

0:12:04.520 --> 0:12:06.320
<v Speaker 16>But when I put that aside and just look at

0:12:06.320 --> 0:12:08.480
<v Speaker 16>our work, you know, the thing that's been coming up

0:12:08.520 --> 0:12:10.520
<v Speaker 16>in my meetings there the past week is just there's

0:12:10.559 --> 0:12:13.760
<v Speaker 16>all this worry about the said and inflation being sticky

0:12:13.800 --> 0:12:16.040
<v Speaker 16>out there again, big topic of conversation.

0:12:16.200 --> 0:12:17.560
<v Speaker 11>How do you play that well?

0:12:17.679 --> 0:12:20.480
<v Speaker 16>Energy is one of the sectors that tends to actually

0:12:20.480 --> 0:12:23.800
<v Speaker 16>outperform when ten year yields are rising. So we left

0:12:23.800 --> 0:12:26.080
<v Speaker 16>our overweight on this year. It was somewhat of a

0:12:26.160 --> 0:12:29.120
<v Speaker 16>controversial decision, but we said at the time that we

0:12:29.160 --> 0:12:31.560
<v Speaker 16>really viewed it as an inflation hedge in our portfolio.

0:12:31.679 --> 0:12:34.560
<v Speaker 16>We like the enthusiasm, our analysts, we like the evaluations,

0:12:34.800 --> 0:12:37.160
<v Speaker 16>and so it's interesting to see you're really starting to

0:12:37.200 --> 0:12:39.480
<v Speaker 16>see this sector move all of a sudden, and it's

0:12:39.520 --> 0:12:41.640
<v Speaker 16>really kind of functioning in our portfolio, is the way

0:12:41.720 --> 0:12:43.760
<v Speaker 16>we intend it to the start the year in case

0:12:43.800 --> 0:12:45.240
<v Speaker 16>this inflation risk came back.

0:12:45.760 --> 0:12:47.920
<v Speaker 2>Do you think then that energy could be a leader

0:12:48.000 --> 0:12:50.520
<v Speaker 2>for the rally, that we could see a shift away

0:12:50.920 --> 0:12:54.280
<v Speaker 2>from the megacap tech names that have dominated for the

0:12:54.360 --> 0:12:55.160
<v Speaker 2>last several months.

0:12:55.960 --> 0:12:57.640
<v Speaker 16>So I think you have to look at both sides

0:12:57.640 --> 0:13:00.120
<v Speaker 16>of that trade, and I do think that energy as

0:13:00.160 --> 0:13:03.719
<v Speaker 16>a natural beneficiary if that rotation trade, you know, does

0:13:03.760 --> 0:13:05.880
<v Speaker 16>sort of resume in a sustainable way. And there are

0:13:06.000 --> 0:13:08.920
<v Speaker 16>signs in the data that that rotation trade is really

0:13:08.920 --> 0:13:11.680
<v Speaker 16>trying to get started again, not quite with the same

0:13:11.760 --> 0:13:14.080
<v Speaker 16>kind of power that it had back in November and December,

0:13:14.080 --> 0:13:15.719
<v Speaker 16>but we are seeing, you know, in a lot of

0:13:15.760 --> 0:13:19.000
<v Speaker 16>different quant metrics that we look at, that you're starting

0:13:19.040 --> 0:13:21.320
<v Speaker 16>to see some shift away. And I think energy is

0:13:21.360 --> 0:13:24.800
<v Speaker 16>not really enough on its own to sort of absorb

0:13:24.840 --> 0:13:26.640
<v Speaker 16>all that market cap. So I think there are things

0:13:26.720 --> 0:13:29.480
<v Speaker 16>like small caps, you know, industrials has also been doing

0:13:29.480 --> 0:13:31.760
<v Speaker 16>well of late. Financials is another one to keep an

0:13:31.760 --> 0:13:34.160
<v Speaker 16>eye on. There's a lot of market cap there. But generally,

0:13:34.520 --> 0:13:36.520
<v Speaker 16>I think the market is starting to respond to the

0:13:36.559 --> 0:13:40.040
<v Speaker 16>idea that economic expectations are coming in better than expected

0:13:40.280 --> 0:13:43.040
<v Speaker 16>GDP forecasts up to two point one percent for this year,

0:13:43.360 --> 0:13:45.760
<v Speaker 16>and that really should pull people out of you know,

0:13:45.840 --> 0:13:48.120
<v Speaker 16>kind of more of the defensive secular growth names to

0:13:48.160 --> 0:13:50.520
<v Speaker 16>some extent, and into more cyclical areas of the market.

0:13:50.679 --> 0:13:52.560
<v Speaker 16>Energy would be in that bucket, yeah.

0:13:52.440 --> 0:13:55.680
<v Speaker 2>And that takes us to the policy decision and the

0:13:55.720 --> 0:13:59.480
<v Speaker 2>look ahead to further Federal Reserve policy making for the

0:13:59.480 --> 0:14:01.800
<v Speaker 2>rest of this year. Are you thinking that the Fed

0:14:01.880 --> 0:14:04.640
<v Speaker 2>is going to push back even further on expectations that

0:14:04.960 --> 0:14:07.400
<v Speaker 2>the first rate cut could come even later in the summer.

0:14:08.520 --> 0:14:10.920
<v Speaker 16>So our team is still in the June camp, and

0:14:11.120 --> 0:14:12.679
<v Speaker 16>you know, that has been in line with a lot

0:14:12.679 --> 0:14:14.680
<v Speaker 16>of the messaging that we've seen from the FED with

0:14:14.840 --> 0:14:17.280
<v Speaker 16>for quite some time. So we'll see, of course what

0:14:17.320 --> 0:14:21.160
<v Speaker 16>the commentary shows. You know, I think that the idea

0:14:21.320 --> 0:14:23.280
<v Speaker 16>of kind of March cut, you know that was so

0:14:23.400 --> 0:14:25.800
<v Speaker 16>popular to come into the really sort of mystified me

0:14:25.800 --> 0:14:28.640
<v Speaker 16>where that was coming from but that's obviously kind of undoing.

0:14:28.680 --> 0:14:31.880
<v Speaker 16>That view has been a big focal point for investors

0:14:31.880 --> 0:14:33.720
<v Speaker 16>this year, so our team still thinks they're going to

0:14:33.760 --> 0:14:35.840
<v Speaker 16>move in June. I think, you know, the commentary is

0:14:35.880 --> 0:14:37.960
<v Speaker 16>always of interest to me in terms of just the

0:14:38.040 --> 0:14:41.400
<v Speaker 16>characterization of inflation and the economy. But we'll, you know,

0:14:41.440 --> 0:14:43.240
<v Speaker 16>we'll see how the market reacts. I think there's so

0:14:43.360 --> 0:14:44.920
<v Speaker 16>much anngst that's already been baked in.

0:14:45.680 --> 0:14:47.800
<v Speaker 2>Just to talk a little bit more about that potential

0:14:47.840 --> 0:14:51.960
<v Speaker 2>market reaction, what could the messaging from the FED do

0:14:52.120 --> 0:14:55.240
<v Speaker 2>when it comes to your thinking about large cap versus

0:14:55.240 --> 0:14:58.320
<v Speaker 2>small cap stocks, which, of course small cap is so

0:14:58.440 --> 0:15:02.880
<v Speaker 2>sensitive to what happened in the economic.

0:15:02.400 --> 0:15:05.080
<v Speaker 16>Data now, I think that's important. There are a few

0:15:05.080 --> 0:15:07.560
<v Speaker 16>cross currents for small caps going on now right because

0:15:07.560 --> 0:15:10.400
<v Speaker 16>the hot economy tends to benefit small caps. They do

0:15:10.480 --> 0:15:13.760
<v Speaker 16>tend to be more cyclical and just sort of more

0:15:13.840 --> 0:15:16.200
<v Speaker 16>exposed to those hopes and fears around where the domestic

0:15:16.240 --> 0:15:18.640
<v Speaker 16>economy is headed. But at the same time, small caps

0:15:18.680 --> 0:15:21.200
<v Speaker 16>have really needed rate cuts to kind of get their

0:15:21.200 --> 0:15:25.320
<v Speaker 16>stabilization in versus large cap Historically, we two tend to

0:15:25.360 --> 0:15:27.720
<v Speaker 16>see small caps out perform when the first cuts come

0:15:27.800 --> 0:15:29.760
<v Speaker 16>in and they've pre traded a lot of that back

0:15:29.760 --> 0:15:32.320
<v Speaker 16>in November and December. So I think the cuts are

0:15:32.360 --> 0:15:34.160
<v Speaker 16>the kind of first issue, but I do think the

0:15:34.920 --> 0:15:38.400
<v Speaker 16>economic descriptions matter as well, and so for small caps

0:15:38.400 --> 0:15:40.120
<v Speaker 16>to work, we've really got to see the needle threaded

0:15:40.120 --> 0:15:43.040
<v Speaker 16>where you get the cuts and the economic expectations continue

0:15:43.080 --> 0:15:43.560
<v Speaker 16>to improve.

0:15:46.680 --> 0:15:49.600
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