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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Amy Morris. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Wall Street's going to close out the trading week following

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Speaker 3: a powerful rally that has seen all three major indexes

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Speaker 3: in this country close at all time highs. It is

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Speaker 3: an artificial intelligence fueled rally, as Chip, Darling and Nvidia

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Speaker 3: added two hundred and seventy seven billion dollars to its

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Speaker 3: market value on Thursday.

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Speaker 4: That is the most in stock market history.

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Speaker 3: Cole Smeed, portfolio manager at Smeed Capital Management, warns, though

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Speaker 3: this rally may be overdone.

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Speaker 4: There's a lot of risk out there.

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Speaker 5: If you took the old tech right, you took consumer

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Speaker 5: discretion and you pulled out the tech companies there and

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Speaker 5: communication service. You pulled out the tech companies and you

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Speaker 5: put back the old tech together. This is way worse

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Speaker 5: than dot com bubble that was twenty eight percent of

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Speaker 5: the S and P. This is forty five.

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Speaker 3: Investor Colesmith notes the S and P five hundred registered

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Speaker 3: its twelfth record close of the year, putting it up

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Speaker 3: nearly twenty four percent since late October.

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Speaker 2: The huge rally in Nvidia shares has catapulted chief executive

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Speaker 2: officer Jensen Wong to new heights. He is on the

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Speaker 2: verge of becoming one of the twenty richest people in

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Speaker 2: the world. Huang's wealth jumped nine point six million to

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Speaker 2: more than sixty nine billion dollars yesterday. It's again that

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Speaker 2: Leip rogged him ahead of Charles Coke to twenty first

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Speaker 2: place on the Bloomberg Billionaire's Index.

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Speaker 4: Well Amy.

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Speaker 3: The rally inequity markets comes despite more FED officials preaching patients.

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Speaker 3: When it comes to rate cuts, Philadelphia Fed President Patrick

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Speaker 3: Harker says now is not the appropriate time to cut.

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Speaker 6: Yes, I do believe that we may be in a

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Speaker 6: position to see rates decrease this year, but I would

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Speaker 6: caution anyone from looking for it right now and right away.

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Speaker 6: We have time to get it right as we must.

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Speaker 3: Philadelphia Fed chief Patrick Harker does not vote on monetary

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Speaker 3: policy this year, but FED Vice Chair Philip Jefferson and

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Speaker 3: Governor Lisa Cook are also saying they want more evidence

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Speaker 3: that inflation's headed back to the two percent target before

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Speaker 3: lowering borrowing costs.

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Speaker 2: Former Treasury Secretary Larry Summers is warning that financial markets

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Speaker 2: are underestimating the risks of political and social turmoil around

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Speaker 2: the world. He says many aren't taking populist policies, and

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Speaker 2: they're downsides seriously.

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Speaker 7: Nationalist populist policy, both at home in terms of the

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Speaker 7: rule of law, internationally in terms of protectionism and restrictions

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Speaker 7: on flows of goods, flows of capital, flows of people.

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Speaker 7: But they are very real risks and they seem to

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Speaker 7: me to be insufficiently priced.

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Speaker 2: In Summer, who is a paid contributor to Bloomberg TV,

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Speaker 2: has called becoming us election the most consequential vote since

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Speaker 2: World War Two.

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Speaker 3: I mean, we're learning more this morning about that widespread

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Speaker 3: service outage that affected tens of thousands of AT and

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Speaker 3: T customers. The wireless carrier now says it was caused

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Speaker 3: by its network improvement efforts.

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Speaker 4: We get the details now from Bloomberg's at Baxter.

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Speaker 1: AT and T is now saying that the outage was

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Speaker 1: caused by work being done to expand the network coverage.

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Speaker 1: It says incorrect processes were followed. It says not a

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Speaker 1: cyber attack already in process, though investigations by a number

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Speaker 1: of federal agencies. Henness spokesman John Kirby.

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Speaker 8: DHS and the FBI are looking into this as well,

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Speaker 8: working with the tech industry and these network providers.

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Speaker 1: Tracking service website down Detector says more than one and

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Speaker 1: a half million outage reports were made. ED Baxter Bloomberg Radio.

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Speaker 4: All right, thank you, Ed.

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Speaker 2: Meanwhile, the private space race has reached a new milestone today.

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Speaker 9: For the first time in more than a half century,

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Speaker 9: the US has returned to the Moon today for the

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Speaker 9: first time in the history of humanity. A commercial company,

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Speaker 9: an American company, launched and led the voyage up there.

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Speaker 2: That was NASA administrator Bill Nelson. After the lunar lander

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Speaker 2: owned by Intuitive Machines touched down on the lunar's surface,

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Speaker 2: former NASA astrobiologist Keith Cohing says the lander, nicknamed Odysseus,

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Speaker 2: still has a lot to tell us.

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Speaker 8: The most exciting thing will be the images of either

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Speaker 8: the landing or from the lander. That's always the eye candy.

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Speaker 8: That's because it's like universal, people say, yeah, oh, look

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Speaker 8: at that.

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Speaker 10: Yeah.

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Speaker 8: Second of all, the importance of it will be the

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Speaker 8: ability of it to survey the area around it and understand,

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Speaker 8: you know again, waters, the regular other things like that.

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Speaker 2: Former NASA employee Keith Cohing says Odysseus will need to

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Speaker 2: tick off all the boxes before lunar Landers send astronauts

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Speaker 2: back to the moon. Intuitive machines stock is off like

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Speaker 2: a rocket after that landing. It's up more than forty

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Speaker 2: six percent in early trading.

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Speaker 3: All right, let's turn to geopolitics now, Amy Tomorrow marks

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Speaker 3: two years since Russia's invasion of Ukraine. Today, the Biden

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Speaker 3: administration will announce its biggest sanctions package yet against Vladimir

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Speaker 3: Putin's war machine. The Treasury Department says more than five

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Speaker 3: hundred people and entities will be on the sanctions list.

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Speaker 3: President Biden met yesterday with the widow and daughter of

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Speaker 3: Russian opposition leader Alexi Navani.

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Speaker 6: As you stated the obvious, he was a man of

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Speaker 6: incredible courage and it's amazing how his wife and daughter, immy,

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Speaker 6: I do that.

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Speaker 3: And the President spoke after that meeting in San Francisco. Today,

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Speaker 3: Senate Majority Leader Chuck Schumer is leading a delegation to Ukraine.

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Speaker 3: He wants to reassure President Vladimir Zelenski. More usaid is coming.

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Speaker 3: That sixty billion dollar package remains stalled on Capitol Hill.

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Speaker 2: Turning back to the markets now, Reddit filed for an

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Speaker 2: initial public offering, revealing the social media platform's shrinking losses

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Speaker 2: and helping to propel a resurgence in US listings. The

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Speaker 2: San Francisco based company and what is said to be

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Speaker 2: one of the biggest listings of the US, filed with

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Speaker 2: the SEZ more than two years after first submitting its

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Speaker 2: plan confidentially.

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Speaker 3: In Asia, China's home price has declined at a slower

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Speaker 3: pace for both new and existing units last month. Bloomberg

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Speaker 3: day Break Asia anchor Brian Curtis has more on that

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Speaker 3: from Hong Kong.

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Speaker 11: It's the first sign of improvement in ten months. New

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Speaker 11: home prices in seventy cities dropped zero point three to

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Speaker 11: seven percent last month from December. It was slightly better

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Speaker 11: than a drop then of zero point four to five percent.

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Speaker 11: The second head market also improved, with price declines narrowing

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Speaker 11: to zero point six to eight percent. No one's breaking

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Speaker 11: out the champagne here, but it may mean the worst

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Speaker 11: is over in China's property crisis. In Okong, Brian Curtis Bloomberg.

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Speaker 3: Radio Time Now to take a look at some of

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Speaker 3: the other stories making news in New York and around

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Speaker 3: the world, and for that we are joined by Bloomberg's

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Speaker 3: Michael Barr.

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Speaker 4: We made it to Friday, Michael.

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Speaker 12: Hooray, thank you. Nathan. New York State's attorney general says

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Speaker 12: she is exploring all options against a Long Island count's

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Speaker 12: executive order batting transgender athletes from competing in women's and girls'

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Speaker 12: sports in county facilities. Nassau County Executive Bruce Blickman announced

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Speaker 12: the new band, saying it will take effect immediately.

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Speaker 13: If a league or team and identifies themselves or advertises

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Speaker 13: themselves to be a girls or women's league or team,

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Speaker 13: then biological males should not be competing in those leagues.

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Speaker 12: Blakeman called it a form of bullying from people born

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Speaker 12: as biological males, though he did not provide examples of

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Speaker 12: it in Nassau County. Meanwhile, protesters demonstrated outside the county

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Speaker 12: office building. They slammed the Nassau Republican's action as illegal

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Speaker 12: and discriminatory. Katie Hawklin is with a Long Island Progressive Coalition.

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Speaker 2: I am floored and horrified by this executive order.

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Speaker 12: Protesters also accused the county executive of playing politics with

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Speaker 12: lives of vulnerable transgender kids. The judge who has been

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Speaker 12: presiding over Donald Trump's New York civil fraud trial is

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Speaker 12: denying the former president's request for a month long delay

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Speaker 12: of the penalty the judge set last week. Judge Arthur

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Speaker 12: and Goren already ruled that Trump committed fraud and ordered

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Speaker 12: him to pay three hundred and fifty five million dollars

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Speaker 12: plus interest. Now Judge in Goren faces flat now flatly

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Speaker 12: rejects Trump's request for delay of that judgment, and Goren

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Speaker 12: told Trump's lawyers that they have failed to explain, much

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Speaker 12: less justify any basis for state. The former president now

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Speaker 12: has just thirty days to pay the fine in cash

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Speaker 12: or to post a bond for the full amount in

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Speaker 12: order to appeal the ruling. Meanwhile, Trump's legal team has

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Speaker 12: filed multiple motions urging a Florida judge to dismiss the

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Speaker 12: criminal case charging him with illegally retaining classified documents. They claim,

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Speaker 12: in part that presidential immunity protects him from prosecution. Manhattan

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Speaker 12: District Attorney Alvin Bryan gave an angry response to Maricopa

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Speaker 12: Attorney Rachel Mitchell's decision not to extradite murder suspect rod

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Speaker 12: Almansuri to New York from Arizona. Almansuri is being held

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Speaker 12: in Arizona in connection with two stabbings, but is also

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Speaker 12: wanted in New York for the murder of a woman

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Speaker 12: in Soho in a hotel. District Attorney Mitchell said in

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Speaker 12: a press conference yesterday that she does not want to

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Speaker 12: hand almansuriy over to New York, where she says he

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Speaker 12: could be released pending trial. Bragg hit back Thursday, saying

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Speaker 12: suspected killers are kept in custody.

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Speaker 8: I do not know what they do in Arizona, but

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Speaker 8: I know that here in this county, New York County,

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Speaker 8: we routinely seek and get remands.

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Speaker 10: She means, the person's in custody in our murder case.

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Speaker 12: Global News twenty four hours a day, whenever you want

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Speaker 12: it with Bloomberg News Now. I'm Michael Barr. This is Bloomberg.

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Speaker 4: Nathan, Michael, thank you.

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Speaker 3: Time now for the bloom Sports update brought to you

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Speaker 3: by Trice State. How do you hear's John stash.

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Speaker 14: Out, Thanks Nathan, good night for the inhabitants of Madison Square,

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Speaker 14: Guard and Road wins to the Knickson Rangers. Knicks in

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Speaker 14: Philadelphia won ten ninety six. They led by twenty six

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Speaker 14: saw the league get cut to seven, but they held

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Speaker 14: on to end of four game.

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Speaker 4: Moving straight.

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Speaker 14: The new nick boy on Bob Danovic took six three

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Speaker 14: point shots and made them all eighteen points for both

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Speaker 14: Josh Hart and Precious at Chua, they combined for twenty

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Speaker 14: three rebounds. Tymee Maxi led Philly with thirty five six

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Speaker 14: Ers are struggling without Joel mb They've lost ten of

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Speaker 14: the last thirteen. Big game Tomorrow night at the guard

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Speaker 14: of the Knicks and the league leading Celtics, who won

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Speaker 14: in Chicago won twenty nine to one. Twelve Boston is

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Speaker 14: forty four and twelve. Nets got blown out in Toronto

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Speaker 14: lost by twenty eight. Wizards lost by twenty. In Denver,

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Speaker 14: the Warriors beat the Lakers, who played without Lebron James.

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Speaker 14: As for the Rangers, may g it nine wins in

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Speaker 14: a row, five to one.

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Speaker 12: At New Jersey.

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Speaker 14: Pair of goals for Alexei la Frontier, three assists for

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Speaker 14: our Timmy Paner and he's got forty six on the season.

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Speaker 14: Thirty nine saves for Igor, assists Durk and he also

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Speaker 14: assisted on a Ranger goal. If they win tomorrow afternoon

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Speaker 14: in Philly, the Rangers will have tied the club record

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Speaker 14: for longest winning streak ever. Islanders got shut out in

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Speaker 14: Saint Louis. The Bruins lost in overtime at Calgary. The

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Speaker 14: Capital's won at Tampa Bay.

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Speaker 4: Yankees had a.

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Speaker 14: Busy off season, bringing in Juan Soto, Alex Verdugo, Marcus Stroman.

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Speaker 14: They may not be done, said to be talking to

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Speaker 14: the still unsigned free agent pitcher Blake Snell. The Yankee

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Speaker 14: owner is hal Steinbrenner.

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Speaker 10: I'm not going to get into free agents.

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Speaker 15: I'm just going to tell you that we continue to

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Speaker 15: look at a lot of different options, and you know,

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Speaker 15: given where we are payroll wise, any addition to the

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Speaker 15: club is going to be a costly one. But I'm

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Speaker 15: still willing to consider anything that comes my way. Anything

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Speaker 15: cashing his team brings my way.

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Speaker 14: If the Yanks were to join Snell with Garrett Coley,

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Speaker 14: will have both the cy young winners from last season.

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Speaker 14: The Mets will start the season with code I Senga

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Speaker 14: on the injured list. He would have been the likely

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Speaker 14: opening day pitcher. Short dot Tim Anderson signed with Miami.

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Speaker 14: Ex Yankee g R. Shell As signed with Detroit. The

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Speaker 14: Pirates extend at Ash pitcher Mitch Keller, John Stashia.

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Speaker 4: We're Bloomberg Sports.

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Speaker 3: Okay, John, thanks, so maybe don't I get right back

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Speaker 3: to this market now. We're going to be ending the

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Speaker 3: week get all time highs for the S and P,

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Speaker 3: the Dow, and the Nasdaq on the back of that

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Speaker 3: magnificent outlook we got earlier this week from Nvidia. How

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Speaker 3: much further can this renewed AI bowl run. Let's bring

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Speaker 3: in Daniel Morris for some analysis, Chief market strategist at

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Speaker 3: BNP Pariba.

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Speaker 4: Daniel, thank you for being with us.

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Speaker 3: We're watching a little bit of a pullback from the

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Speaker 3: big time rally that we saw yesterday. When you have

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Speaker 3: the S and P at end of your price targets.

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Speaker 3: For many analysts already, I guess the question's got to

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Speaker 3: be asked, is this an overshoot?

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Speaker 16: Well, I don't think anyone would dare to say they

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Speaker 16: can accurately estimate whether it is.

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Speaker 10: I mean, we know where it's such a nascent stage even.

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Speaker 12: Now with AI.

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Speaker 16: Try to predict what the implications are going to be

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Speaker 16: for corporate profits, I don't know if it really is,

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Speaker 16: not to say, worth the effort, but I think we

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Speaker 16: need to think about the long term potential here, which

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Speaker 16: is what the market's pricing in. I mean, go back

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Speaker 16: to when the Internet first became ubiquitous in the world.

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Speaker 16: I mean, most economist estimate it took a decade for

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Speaker 16: companies really to be able to leverage that.

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Speaker 10: So we're just at the beginning.

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Speaker 16: It may, in retrospect turn out that these estimates are

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Speaker 16: too high, who knows, but for now, I don't think

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Speaker 16: that's what the market is thinking about.

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Speaker 3: Well, we are really getting into this debate, though, aren't

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Speaker 3: we about whether what the differences are between the dot

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Speaker 3: com rally from the late nineties and this AI rally

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Speaker 3: that we're seeing now. What kind of differences do you see?

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Speaker 3: Is this different from what we saw back in the nineties.

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Speaker 10: We certainly, I think in some important ways.

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Speaker 16: I mean, hopefully investors did learn lessons from the dot

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Speaker 16: com bubble and looking at revenues as opposed to sales, etc.

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Speaker 16: But it certainly doesn't seem to be a worry here.

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Speaker 16: I think in companies center for reporting, our reporting real numbers,

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Speaker 16: so that.

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Speaker 10: Profitability is there and clearly is rising.

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Speaker 16: I think that the challenge is going to be and

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Speaker 16: I think perhaps what we need to think about is

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Speaker 16: perhaps to look beyond as everyone discusses maybe if since

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Speaker 16: seven or even the tech sector, because arguably, in the

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Speaker 16: long run, the impact of AI may well be felt

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Speaker 16: more in non technology sectors, as it gives industrial companies

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Speaker 16: and so indiscretionary stable companies the ability to increase our profitability,

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Speaker 16: increase our sales without necessarily having to rely on what

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Speaker 16: we know is a constrained labor market.

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Speaker 3: That's a really long term view, isn't it. But is

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Speaker 3: there a way that we can see this rally that

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Speaker 3: we're under now start to get more breadth and what

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Speaker 3: would that look like?

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Speaker 16: Well, if we want to think about breath, that we

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Speaker 16: need to go back to what the outlook is for

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Speaker 16: the FED, because behind all of this growth, not just

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Speaker 16: some corporate profits, but the US in general, you know,

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Speaker 16: is a worry about the outlook for inflation and then

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Speaker 16: the response from the FED. So one of the key

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Speaker 16: things over the last month or so, as the market

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Speaker 16: has taken out the cuts that they had put in

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Speaker 16: for the FED this year, the markets really have just

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Speaker 16: shrugged that off because on the other hand, the growth

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Speaker 16: outlook has been so good. You know, at this point

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Speaker 16: we've got through there any season that was great we're

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Speaker 16: going to be looking as for new indicators on the

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Speaker 16: growth side, whereas what we may see is more worries

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Speaker 16: again about inflation. So I think what we need to

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Speaker 16: keep very much in the forefront of our minds is

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Speaker 16: number one, will the growth really meet up to those

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Speaker 16: expectations with the risk of disappointment? And then if growth

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Speaker 16: doesn't disappoint, what does that then mean for the outlook

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Speaker 16: for inflation in the FED?

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Speaker 3: And to your point, we are hearing from a lot

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Speaker 3: more FED officials preaching patients when it comes to the

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Speaker 3: outlook for interest rate cuts. In our last thirty seconds here,

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Speaker 3: do you have any concerns about the growth picture for

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Speaker 3: this country and what that could mean for the policy

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Speaker 3: path later on this year?

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Speaker 16: I think it's concerns about the outlook relative to expectations,

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Speaker 16: because now expectations are so high we appreciate, you know,

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Speaker 16: there's just a whole lot of good news that's in

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Speaker 16: the market, so you see any disappointment, it seems more

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Speaker 16: likely from here if there is a surprise, it's going

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Speaker 16: to be a negative surprise that e growth turns out

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Speaker 16: to disappoint relative to those high expectations. Then from here

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Speaker 16: you get another poseative impultseng grows because we've got to

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Speaker 16: remember where FED funds are today, that is at a

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Speaker 16: restrictive level.

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Speaker 10: This should be slowing growth.

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Speaker 16: It will eventually slow growth, and we don't want to

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Speaker 16: dismiss that risk to the market.

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