WEBVTT - Tech Selloff Stalls, HSBC Bonus Cull, More

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<v Speaker 1>News when you want it with Bloomberg News. Now, I'm

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<v Speaker 1>Caroline Hepcare.

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<v Speaker 2>And I'm Stephen Carroll.

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<v Speaker 1>A global slump in technology stocks is pausing as traders

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<v Speaker 1>debate whether a sell off spanning everything from software shares

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<v Speaker 1>to chip makers has gone too far. The trillion dollar

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<v Speaker 1>route was first sparked by Anthropics release of a new

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<v Speaker 1>tool for legal work earlier this week. That move ignited

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<v Speaker 1>fears across the markets that AI leaders will overtake established

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<v Speaker 1>industry players in innovation sooner rather than later, and a

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<v Speaker 1>confusing mix of market signals. Even companies long scene as

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<v Speaker 1>the prime beneficiaries of the AI boom were showing signs

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<v Speaker 1>of fatigue. In the latest earnings report, Alphabet topped projections

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<v Speaker 1>for quarterly revenue, but said that capital spending on AI

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<v Speaker 1>will be significantly higher than anticipated. CEO Sunderpitchi says that

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<v Speaker 1>the money will deliver a return on investment.

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<v Speaker 3>Avenue from AI solutions built by our parts increased nearly

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<v Speaker 3>three hundred percent year over year, and commitments from our

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<v Speaker 3>top fifteen software partners grew more than sixteen x year

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<v Speaker 3>over year.

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<v Speaker 1>Sindpitcha is speaking there as the Google parents said that

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<v Speaker 1>capital expenditure could come close to one hundred and eighty

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<v Speaker 1>five billion dollars this year, compared with your most one

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<v Speaker 1>hundred and twenty billion that analysts had expected.

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<v Speaker 2>The price of silver is plunged by as much as

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<v Speaker 2>seventeen percent today after a two day recovery. Silver price

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<v Speaker 2>has had an all time high in late January of

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<v Speaker 2>more than one hundred and twenty dollars an ounce. Since then,

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<v Speaker 2>silver has lost more than a third of its value

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<v Speaker 2>and as trading around eighty dollars an ounce. The precious

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<v Speaker 2>metal rally last month was driven by speculative leveraged bets,

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<v Speaker 2>geopolitical upheaval, and concerns over fed independence.

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<v Speaker 1>Here in the UK, the Prime Minister is facing a

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<v Speaker 1>growing backlash from his party as revelations over Peter Mandelson's

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<v Speaker 1>relationship with Jeffrey Epstein threatened to further damage his premiership.

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<v Speaker 1>MP's voted to require the government to disclose all documents

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<v Speaker 1>related to Mandlsson's appointment as the UK's ambassador to the

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<v Speaker 1>US by Kirs Starmer. Publication of the vetting files threatens

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<v Speaker 1>to create another dangerous moment for Starmer, who's readily widely

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<v Speaker 1>considered vulnerable to a leadership challenge now. During Prome Minister's

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<v Speaker 1>questions on Wednesdays, Starma was in damage limitation mode, accusing

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<v Speaker 1>Mandalsson of betrayal and saying that he regrets appointing him.

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<v Speaker 4>Mandleson betrayed our country, our parliament and my party. Mister Speaker,

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<v Speaker 4>he lied repeatedly to my team when asked about his

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<v Speaker 4>relationship with Epstein before and during his tenure as ambassador.

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<v Speaker 1>Kirs Starmer was also forced to acknowledge that the material

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<v Speaker 1>used to vet Mandlsson did contain details of the former

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<v Speaker 1>minister's dealings with Epstein. Investors are watching the political term

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<v Speaker 1>all closely, with the gap between two and ten year

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<v Speaker 1>guilt yield hitting the widest since twenty eighteen, a sign

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<v Speaker 1>of the pressure on government bonds.

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<v Speaker 2>The Bank of England is widely expected to leave rate

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<v Speaker 2>on holds today is a waigh for more evidence that

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<v Speaker 2>inflation is under control. Bloomberg's Ewan Parts has a preview.

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<v Speaker 5>Just one of thirty two economists in Bloomberg survey expects

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<v Speaker 5>the rate cut today. The overwhelming consensus is that the

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<v Speaker 5>UK's base eight will remain unchanged at three point seventy

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<v Speaker 5>five percent, ahead of the twelve PM announcement. Rate setters

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<v Speaker 5>will be weighing the contradictory problems of above target inflation

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<v Speaker 5>and growing concerns about the labor market, with unemployment now

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<v Speaker 5>above five percent, but on productivity there could finally be

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<v Speaker 5>some good news. Speaking to Bloomberg's scianists say that headline

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<v Speaker 5>productivity estimates may be masking a recent resurgence driven by

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<v Speaker 5>the adoption of artificial intelligence. One economist from UBS Wealth

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<v Speaker 5>Management saying the UK and global economy are likely in

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<v Speaker 5>better shape than the media would have us believe. In London,

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<v Speaker 5>I'm uing pots of Bloomberg Radio.

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<v Speaker 1>The European Central Bank is also likely to keep in

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<v Speaker 1>US rates on hold for a fifth consecutive meeting. That's

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<v Speaker 1>despite geopolitical tensions and a stronger Euro. All economists surveyed

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<v Speaker 1>by Bloomberg expect the deposit rate to be kept at

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<v Speaker 1>two percent at today's meeting. Investors an analyst see rates

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<v Speaker 1>staying there until the end of next year, with the

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<v Speaker 1>chances of hike in twenty twenty six.

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<v Speaker 2>Receding HSBC is preparing to hand some banker's little or

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<v Speaker 2>no bonus in the coming weeks. Sources tell us the

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<v Speaker 2>British lender is seeking to emulate its Wall Street rivals

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<v Speaker 2>with a more hard edged stance, under the direction of

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<v Speaker 2>CEO jeanjel Hedri, who wants to align the bank more

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<v Speaker 2>closely with its US peers. Bloomberg understands the bank also

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<v Speaker 2>plans to encourage underperforming staff to depart following the payouts,

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<v Speaker 2>including those at managing director level.

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<v Speaker 1>The biggest American lenders are pushing the European Union to

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<v Speaker 1>loosen its cap on banker bonuses. Their lobbying comes as

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<v Speaker 1>the EU considers a wider set of reforms to boost competitiveness.

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<v Speaker 1>Bloomberg's ta Atabayo has this story.

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<v Speaker 6>The EU is accelerating a planned review of its banking

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<v Speaker 6>rule book after pressure from member states and for the

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<v Speaker 6>sector's biggest names, there's one item that's top of the agenda.

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<v Speaker 6>The likes of Goldman, Sachs and JP Morgan are pushing

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<v Speaker 6>for a loosening of banker bonus rules, which currently cap

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<v Speaker 6>payments at twice fixed salaries. But whilst the Association for

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<v Speaker 6>Financial Markets in Europe has put the issue on its

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<v Speaker 6>wish list of reforms, there is some pushback. Bloomberg understands

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<v Speaker 6>that insiders feel the change could come at the expense

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<v Speaker 6>of other measures like simplifying capital structure and reducing daily

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<v Speaker 6>regulatory burdens. In London, Tia Adebayo, Bloomberg Radio.

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<v Speaker 2>And those are your top stories on the markets. The

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<v Speaker 2>stock six hundred down by half of one percent. The

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<v Speaker 2>forty one hundred is four tenths lower this morning on

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<v Speaker 2>Wall Street, SMP Mini features down by a tenth of

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<v Speaker 2>one percent. NASDAK features a touch lower. In commodities, silver

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<v Speaker 2>is eleven percent lower currently just shy of seventy nine

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<v Speaker 2>dollars and out Gold down one point eight percent this morning.

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<v Speaker 2>Brent CREWD one point six percent lower at sixty eight

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<v Speaker 2>dollars and thirty cents.

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<v Speaker 1>That's news when you want it. With Bloomberg News Now,

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<v Speaker 1>I'm Caroline Hepka

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<v Speaker 2>I'm Stephen Carol, and this is Bloomberg