Speaker 1: News when you want it with Bloomberg News. Now, I'm
Speaker 1: Caroline Hepcare.
Speaker 2: And I'm Stephen Carroll.
Speaker 1: A global slump in technology stocks is pausing as traders
Speaker 1: debate whether a sell off spanning everything from software shares
Speaker 1: to chip makers has gone too far. The trillion dollar
Speaker 1: route was first sparked by Anthropics release of a new
Speaker 1: tool for legal work earlier this week. That move ignited
Speaker 1: fears across the markets that AI leaders will overtake established
Speaker 1: industry players in innovation sooner rather than later, and a
Speaker 1: confusing mix of market signals. Even companies long scene as
Speaker 1: the prime beneficiaries of the AI boom were showing signs
Speaker 1: of fatigue. In the latest earnings report, Alphabet topped projections
Speaker 1: for quarterly revenue, but said that capital spending on AI
Speaker 1: will be significantly higher than anticipated. CEO Sunderpitchi says that
Speaker 1: the money will deliver a return on investment.
Speaker 3: Avenue from AI solutions built by our parts increased nearly
Speaker 3: three hundred percent year over year, and commitments from our
Speaker 3: top fifteen software partners grew more than sixteen x year
Speaker 3: over year.
Speaker 1: Sindpitcha is speaking there as the Google parents said that
Speaker 1: capital expenditure could come close to one hundred and eighty
Speaker 1: five billion dollars this year, compared with your most one
Speaker 1: hundred and twenty billion that analysts had expected.
Speaker 2: The price of silver is plunged by as much as
Speaker 2: seventeen percent today after a two day recovery. Silver price
Speaker 2: has had an all time high in late January of
Speaker 2: more than one hundred and twenty dollars an ounce. Since then,
Speaker 2: silver has lost more than a third of its value
Speaker 2: and as trading around eighty dollars an ounce. The precious
Speaker 2: metal rally last month was driven by speculative leveraged bets,
Speaker 2: geopolitical upheaval, and concerns over fed independence.
Speaker 1: Here in the UK, the Prime Minister is facing a
Speaker 1: growing backlash from his party as revelations over Peter Mandelson's
Speaker 1: relationship with Jeffrey Epstein threatened to further damage his premiership.
Speaker 1: MP's voted to require the government to disclose all documents
Speaker 1: related to Mandlsson's appointment as the UK's ambassador to the
Speaker 1: US by Kirs Starmer. Publication of the vetting files threatens
Speaker 1: to create another dangerous moment for Starmer, who's readily widely
Speaker 1: considered vulnerable to a leadership challenge now. During Prome Minister's
Speaker 1: questions on Wednesdays, Starma was in damage limitation mode, accusing
Speaker 1: Mandalsson of betrayal and saying that he regrets appointing him.
Speaker 4: Mandleson betrayed our country, our parliament and my party. Mister Speaker,
Speaker 4: he lied repeatedly to my team when asked about his
Speaker 4: relationship with Epstein before and during his tenure as ambassador.
Speaker 1: Kirs Starmer was also forced to acknowledge that the material
Speaker 1: used to vet Mandlsson did contain details of the former
Speaker 1: minister's dealings with Epstein. Investors are watching the political term
Speaker 1: all closely, with the gap between two and ten year
Speaker 1: guilt yield hitting the widest since twenty eighteen, a sign
Speaker 1: of the pressure on government bonds.
Speaker 2: The Bank of England is widely expected to leave rate
Speaker 2: on holds today is a waigh for more evidence that
Speaker 2: inflation is under control. Bloomberg's Ewan Parts has a preview.
Speaker 5: Just one of thirty two economists in Bloomberg survey expects
Speaker 5: the rate cut today. The overwhelming consensus is that the
Speaker 5: UK's base eight will remain unchanged at three point seventy
Speaker 5: five percent, ahead of the twelve PM announcement. Rate setters
Speaker 5: will be weighing the contradictory problems of above target inflation
Speaker 5: and growing concerns about the labor market, with unemployment now
Speaker 5: above five percent, but on productivity there could finally be
Speaker 5: some good news. Speaking to Bloomberg's scianists say that headline
Speaker 5: productivity estimates may be masking a recent resurgence driven by
Speaker 5: the adoption of artificial intelligence. One economist from UBS Wealth
Speaker 5: Management saying the UK and global economy are likely in
Speaker 5: better shape than the media would have us believe. In London,
Speaker 5: I'm uing pots of Bloomberg Radio.
Speaker 1: The European Central Bank is also likely to keep in
Speaker 1: US rates on hold for a fifth consecutive meeting. That's
Speaker 1: despite geopolitical tensions and a stronger Euro. All economists surveyed
Speaker 1: by Bloomberg expect the deposit rate to be kept at
Speaker 1: two percent at today's meeting. Investors an analyst see rates
Speaker 1: staying there until the end of next year, with the
Speaker 1: chances of hike in twenty twenty six.
Speaker 2: Receding HSBC is preparing to hand some banker's little or
Speaker 2: no bonus in the coming weeks. Sources tell us the
Speaker 2: British lender is seeking to emulate its Wall Street rivals
Speaker 2: with a more hard edged stance, under the direction of
Speaker 2: CEO jeanjel Hedri, who wants to align the bank more
Speaker 2: closely with its US peers. Bloomberg understands the bank also
Speaker 2: plans to encourage underperforming staff to depart following the payouts,
Speaker 2: including those at managing director level.
Speaker 1: The biggest American lenders are pushing the European Union to
Speaker 1: loosen its cap on banker bonuses. Their lobbying comes as
Speaker 1: the EU considers a wider set of reforms to boost competitiveness.
Speaker 1: Bloomberg's ta Atabayo has this story.
Speaker 6: The EU is accelerating a planned review of its banking
Speaker 6: rule book after pressure from member states and for the
Speaker 6: sector's biggest names, there's one item that's top of the agenda.
Speaker 6: The likes of Goldman, Sachs and JP Morgan are pushing
Speaker 6: for a loosening of banker bonus rules, which currently cap
Speaker 6: payments at twice fixed salaries. But whilst the Association for
Speaker 6: Financial Markets in Europe has put the issue on its
Speaker 6: wish list of reforms, there is some pushback. Bloomberg understands
Speaker 6: that insiders feel the change could come at the expense
Speaker 6: of other measures like simplifying capital structure and reducing daily
Speaker 6: regulatory burdens. In London, Tia Adebayo, Bloomberg Radio.
Speaker 2: And those are your top stories on the markets. The
Speaker 2: stock six hundred down by half of one percent. The
Speaker 2: forty one hundred is four tenths lower this morning on
Speaker 2: Wall Street, SMP Mini features down by a tenth of
Speaker 2: one percent. NASDAK features a touch lower. In commodities, silver
Speaker 2: is eleven percent lower currently just shy of seventy nine
Speaker 2: dollars and out Gold down one point eight percent this morning.
Speaker 2: Brent CREWD one point six percent lower at sixty eight
Speaker 2: dollars and thirty cents.
Speaker 1: That's news when you want it. With Bloomberg News Now,
Speaker 1: I'm Caroline Hepka
Speaker 2: I'm Stephen Carol, and this is Bloomberg