1
00:00:00,720 --> 00:00:03,200
Speaker 1: News when you want it with Bloomberg News. Now, I'm

2
00:00:03,240 --> 00:00:04,560
Speaker 1: Caroline Hepcare.

3
00:00:04,160 --> 00:00:05,240
Speaker 2: And I'm Stephen Carroll.

4
00:00:05,400 --> 00:00:09,680
Speaker 1: A global slump in technology stocks is pausing as traders

5
00:00:09,720 --> 00:00:13,320
Speaker 1: debate whether a sell off spanning everything from software shares

6
00:00:13,360 --> 00:00:17,000
Speaker 1: to chip makers has gone too far. The trillion dollar

7
00:00:17,079 --> 00:00:19,920
Speaker 1: route was first sparked by Anthropics release of a new

8
00:00:20,000 --> 00:00:24,000
Speaker 1: tool for legal work earlier this week. That move ignited

9
00:00:24,040 --> 00:00:28,200
Speaker 1: fears across the markets that AI leaders will overtake established

10
00:00:28,280 --> 00:00:32,640
Speaker 1: industry players in innovation sooner rather than later, and a

11
00:00:32,680 --> 00:00:37,279
Speaker 1: confusing mix of market signals. Even companies long scene as

12
00:00:37,320 --> 00:00:40,839
Speaker 1: the prime beneficiaries of the AI boom were showing signs

13
00:00:40,840 --> 00:00:45,159
Speaker 1: of fatigue. In the latest earnings report, Alphabet topped projections

14
00:00:45,200 --> 00:00:48,480
Speaker 1: for quarterly revenue, but said that capital spending on AI

15
00:00:48,600 --> 00:00:54,120
Speaker 1: will be significantly higher than anticipated. CEO Sunderpitchi says that

16
00:00:54,160 --> 00:00:56,800
Speaker 1: the money will deliver a return on investment.

17
00:00:57,400 --> 00:01:01,400
Speaker 3: Avenue from AI solutions built by our parts increased nearly

18
00:01:01,480 --> 00:01:04,800
Speaker 3: three hundred percent year over year, and commitments from our

19
00:01:04,840 --> 00:01:08,320
Speaker 3: top fifteen software partners grew more than sixteen x year

20
00:01:08,360 --> 00:01:08,840
Speaker 3: over year.

21
00:01:09,760 --> 00:01:12,800
Speaker 1: Sindpitcha is speaking there as the Google parents said that

22
00:01:12,840 --> 00:01:16,520
Speaker 1: capital expenditure could come close to one hundred and eighty

23
00:01:16,560 --> 00:01:19,880
Speaker 1: five billion dollars this year, compared with your most one

24
00:01:20,000 --> 00:01:22,600
Speaker 1: hundred and twenty billion that analysts had expected.

25
00:01:23,240 --> 00:01:25,119
Speaker 2: The price of silver is plunged by as much as

26
00:01:25,120 --> 00:01:28,920
Speaker 2: seventeen percent today after a two day recovery. Silver price

27
00:01:28,920 --> 00:01:30,960
Speaker 2: has had an all time high in late January of

28
00:01:31,000 --> 00:01:33,920
Speaker 2: more than one hundred and twenty dollars an ounce. Since then,

29
00:01:33,959 --> 00:01:36,199
Speaker 2: silver has lost more than a third of its value

30
00:01:36,280 --> 00:01:39,120
Speaker 2: and as trading around eighty dollars an ounce. The precious

31
00:01:39,120 --> 00:01:42,560
Speaker 2: metal rally last month was driven by speculative leveraged bets,

32
00:01:42,640 --> 00:01:46,080
Speaker 2: geopolitical upheaval, and concerns over fed independence.

33
00:01:46,760 --> 00:01:48,760
Speaker 1: Here in the UK, the Prime Minister is facing a

34
00:01:48,760 --> 00:01:52,920
Speaker 1: growing backlash from his party as revelations over Peter Mandelson's

35
00:01:52,920 --> 00:01:57,560
Speaker 1: relationship with Jeffrey Epstein threatened to further damage his premiership.

36
00:01:57,720 --> 00:02:02,200
Speaker 1: MP's voted to require the government to disclose all documents

37
00:02:02,440 --> 00:02:06,360
Speaker 1: related to Mandlsson's appointment as the UK's ambassador to the

38
00:02:06,440 --> 00:02:11,000
Speaker 1: US by Kirs Starmer. Publication of the vetting files threatens

39
00:02:11,040 --> 00:02:15,160
Speaker 1: to create another dangerous moment for Starmer, who's readily widely

40
00:02:15,240 --> 00:02:19,160
Speaker 1: considered vulnerable to a leadership challenge now. During Prome Minister's

41
00:02:19,280 --> 00:02:23,359
Speaker 1: questions on Wednesdays, Starma was in damage limitation mode, accusing

42
00:02:23,560 --> 00:02:27,320
Speaker 1: Mandalsson of betrayal and saying that he regrets appointing him.

43
00:02:27,919 --> 00:02:35,079
Speaker 4: Mandleson betrayed our country, our parliament and my party. Mister Speaker,

44
00:02:35,400 --> 00:02:39,360
Speaker 4: he lied repeatedly to my team when asked about his

45
00:02:39,480 --> 00:02:43,560
Speaker 4: relationship with Epstein before and during his tenure as ambassador.

46
00:02:43,880 --> 00:02:47,079
Speaker 1: Kirs Starmer was also forced to acknowledge that the material

47
00:02:47,200 --> 00:02:50,799
Speaker 1: used to vet Mandlsson did contain details of the former

48
00:02:50,840 --> 00:02:54,799
Speaker 1: minister's dealings with Epstein. Investors are watching the political term

49
00:02:54,840 --> 00:02:57,040
Speaker 1: all closely, with the gap between two and ten year

50
00:02:57,120 --> 00:03:00,919
Speaker 1: guilt yield hitting the widest since twenty eighteen, a sign

51
00:03:01,320 --> 00:03:03,760
Speaker 1: of the pressure on government bonds.

52
00:03:04,400 --> 00:03:06,480
Speaker 2: The Bank of England is widely expected to leave rate

53
00:03:06,600 --> 00:03:08,840
Speaker 2: on holds today is a waigh for more evidence that

54
00:03:08,919 --> 00:03:13,000
Speaker 2: inflation is under control. Bloomberg's Ewan Parts has a preview.

55
00:03:13,600 --> 00:03:16,600
Speaker 5: Just one of thirty two economists in Bloomberg survey expects

56
00:03:16,600 --> 00:03:19,600
Speaker 5: the rate cut today. The overwhelming consensus is that the

57
00:03:19,680 --> 00:03:23,000
Speaker 5: UK's base eight will remain unchanged at three point seventy

58
00:03:23,040 --> 00:03:26,360
Speaker 5: five percent, ahead of the twelve PM announcement. Rate setters

59
00:03:26,400 --> 00:03:29,760
Speaker 5: will be weighing the contradictory problems of above target inflation

60
00:03:30,000 --> 00:03:33,320
Speaker 5: and growing concerns about the labor market, with unemployment now

61
00:03:33,400 --> 00:03:37,240
Speaker 5: above five percent, but on productivity there could finally be

62
00:03:37,360 --> 00:03:40,840
Speaker 5: some good news. Speaking to Bloomberg's scianists say that headline

63
00:03:40,840 --> 00:03:44,640
Speaker 5: productivity estimates may be masking a recent resurgence driven by

64
00:03:44,640 --> 00:03:49,040
Speaker 5: the adoption of artificial intelligence. One economist from UBS Wealth

65
00:03:49,080 --> 00:03:52,280
Speaker 5: Management saying the UK and global economy are likely in

66
00:03:52,360 --> 00:03:55,400
Speaker 5: better shape than the media would have us believe. In London,

67
00:03:55,440 --> 00:03:56,920
Speaker 5: I'm uing pots of Bloomberg Radio.

68
00:03:57,240 --> 00:03:59,800
Speaker 1: The European Central Bank is also likely to keep in

69
00:04:00,080 --> 00:04:03,640
Speaker 1: US rates on hold for a fifth consecutive meeting. That's

70
00:04:03,640 --> 00:04:07,920
Speaker 1: despite geopolitical tensions and a stronger Euro. All economists surveyed

71
00:04:07,960 --> 00:04:10,400
Speaker 1: by Bloomberg expect the deposit rate to be kept at

72
00:04:10,400 --> 00:04:14,520
Speaker 1: two percent at today's meeting. Investors an analyst see rates

73
00:04:14,520 --> 00:04:17,320
Speaker 1: staying there until the end of next year, with the

74
00:04:17,440 --> 00:04:19,560
Speaker 1: chances of hike in twenty twenty six.

75
00:04:19,800 --> 00:04:24,400
Speaker 2: Receding HSBC is preparing to hand some banker's little or

76
00:04:24,520 --> 00:04:27,120
Speaker 2: no bonus in the coming weeks. Sources tell us the

77
00:04:27,120 --> 00:04:30,479
Speaker 2: British lender is seeking to emulate its Wall Street rivals

78
00:04:30,760 --> 00:04:33,200
Speaker 2: with a more hard edged stance, under the direction of

79
00:04:33,240 --> 00:04:36,159
Speaker 2: CEO jeanjel Hedri, who wants to align the bank more

80
00:04:36,160 --> 00:04:39,680
Speaker 2: closely with its US peers. Bloomberg understands the bank also

81
00:04:39,720 --> 00:04:43,640
Speaker 2: plans to encourage underperforming staff to depart following the payouts,

82
00:04:43,680 --> 00:04:45,679
Speaker 2: including those at managing director level.

83
00:04:46,360 --> 00:04:49,680
Speaker 1: The biggest American lenders are pushing the European Union to

84
00:04:49,800 --> 00:04:53,840
Speaker 1: loosen its cap on banker bonuses. Their lobbying comes as

85
00:04:53,880 --> 00:04:58,040
Speaker 1: the EU considers a wider set of reforms to boost competitiveness.

86
00:04:58,240 --> 00:05:00,320
Speaker 1: Bloomberg's ta Atabayo has this story.

87
00:05:00,839 --> 00:05:04,120
Speaker 6: The EU is accelerating a planned review of its banking

88
00:05:04,200 --> 00:05:07,400
Speaker 6: rule book after pressure from member states and for the

89
00:05:07,440 --> 00:05:10,839
Speaker 6: sector's biggest names, there's one item that's top of the agenda.

90
00:05:11,279 --> 00:05:14,520
Speaker 6: The likes of Goldman, Sachs and JP Morgan are pushing

91
00:05:14,560 --> 00:05:17,760
Speaker 6: for a loosening of banker bonus rules, which currently cap

92
00:05:17,800 --> 00:05:21,520
Speaker 6: payments at twice fixed salaries. But whilst the Association for

93
00:05:21,600 --> 00:05:24,520
Speaker 6: Financial Markets in Europe has put the issue on its

94
00:05:24,560 --> 00:05:28,960
Speaker 6: wish list of reforms, there is some pushback. Bloomberg understands

95
00:05:29,000 --> 00:05:32,000
Speaker 6: that insiders feel the change could come at the expense

96
00:05:32,080 --> 00:05:36,320
Speaker 6: of other measures like simplifying capital structure and reducing daily

97
00:05:36,400 --> 00:05:41,040
Speaker 6: regulatory burdens. In London, Tia Adebayo, Bloomberg Radio.

98
00:05:41,520 --> 00:05:43,520
Speaker 2: And those are your top stories on the markets. The

99
00:05:43,600 --> 00:05:45,760
Speaker 2: stock six hundred down by half of one percent. The

100
00:05:45,760 --> 00:05:48,320
Speaker 2: forty one hundred is four tenths lower this morning on

101
00:05:48,360 --> 00:05:50,920
Speaker 2: Wall Street, SMP Mini features down by a tenth of

102
00:05:50,920 --> 00:05:54,400
Speaker 2: one percent. NASDAK features a touch lower. In commodities, silver

103
00:05:54,520 --> 00:05:57,480
Speaker 2: is eleven percent lower currently just shy of seventy nine

104
00:05:57,520 --> 00:06:01,000
Speaker 2: dollars and out Gold down one point eight percent this morning.

105
00:06:01,080 --> 00:06:04,440
Speaker 2: Brent CREWD one point six percent lower at sixty eight

106
00:06:04,480 --> 00:06:06,240
Speaker 2: dollars and thirty cents.

107
00:06:06,480 --> 00:06:09,400
Speaker 1: That's news when you want it. With Bloomberg News Now,

108
00:06:09,480 --> 00:06:10,560
Speaker 1: I'm Caroline Hepka

109
00:06:10,720 --> 00:06:13,240
Speaker 2: I'm Stephen Carol, and this is Bloomberg