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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we start with big tech and a big number, six hundred and fifty billion dollars. That is how much for the biggest US tech companies plan to spend this year on capital expenditures. Bloomberg News has calculated the spending plan by Alphabet Meta platforms, Microsoft and Amazon will set a high water mark for spending by any single corporation
in any one of the last ten years. Shares in Amazon fell after the e commerce joint announced its latest earnings and plans to spend two hundred billion this year on AI, data centers, chips and other equipment. CEO Andy Jasse says the money will predominantly go to the company's cloud unit, and most of that spending.
Will be for AI workloads.
Speaking on the earnings call, Jasse said, it will be worth it will at this what's happening.
It's kind of unbelievable if you look at the demand of what you're seeing already with AI, but the lion's share of that demand is still you have to come in the middle of that barbell and that will come over time.
And Amazon shares are down almost eight percent after Andy Jesse spoke with the spending you set the weigh on profits. Punham Goil covers Amazon for Bloomberg Intelligence, they need.
To invest right. We know that Amazon has to continue to invest in cloud services, it needs to invest in AI. So there's a lot of catchup that needs to be done here. I think the long run narrative here is still good. The underlying results were solid across both aws and retail.
And Bloomberg Intelligence analysts. Punum Goyle knows that some of Amazon's capital expenditures will go toward its effort to compete with SpaceX's Starlink Internet service by placing satellites in low Earth orbit and.
Karen the AI disruption trade has the S and P five hundred on track for its worst weeks. And it's April and the risk off mood has extended to crypto as well. Let's get the market roundup from Bloomberg's John Tucker, Johnky morning, Yeah.
Nathan, this is not unlike that deep seat sell off a year ago. Investors haven't spooked by developments on a couple of fronts. The rollout of those models from Anthropic that threaten to make software services redundant, alongside the eye watering spending plans of the big tech companies who are just mentioning now the Tech having nasty Composite Index now a three percent year to day loss. The risk off
mood it did extend to bitcoin. The selling picked up the steam this week, in line with the unwinding of leverage bets and broader market turbulence. No Bel laureate Paul Krugman sees a possible crisis of faith in crypto.
I think it's a big wake up for people.
You know, maybe this isn't actually going to be an enduring asset.
We'll sell off briefly dragged bitcoin to a more than fifty percent retreat from the October peak. Just yesterday, investors pulled four hundred and thirty four million dollars from US exchange traded fund for bitcoin, and now this morning, stock features are modestly higher and bitcoin is on four percent close to sixty six thousand dollars a token. In New York on John Tucker Bloomberg.
Radio, all right, John, thank you, let's turn to geopolitics now. At Alman said it mediated indirect talks between Iran and the United States Severtran's nuclear program.
In a post on x.
Oman said, it's Foreign minister met separately with Iranian Foreign Minister Abbasaragachi, then with US MIDI Special Envoy Steve Wikoff and Jared Kushner. President Trump's son in law, Bloomberg Economics defense lead Beka Wasser tells Bloomberg Balance of Power. She has some concerns.
I am most certainly not optimistic, and I think some of that is because of the firepower that we've seen massed in the region at this point in time. We've also seen Iran engage in some risky behavior, whether that is an attempt to seize a US flag tanker or whether that is having a drone buzz near the US carrier in the Middle East.
And Becca Wesser is defense lead for Bloomberg Economics. The talks come after a chaotic week that initially saw plans for regional countries to take part in talks in Turkey Karen.
President Trump is calling for the creation of a new nuclear arms treaty with Russia as its existing New Start agreement expires. A post on Truth Social the president writes quote. Rather than extend New Start, we should have our nuclear experts work on a new, improved, and modernized treaty that can last long into the future. Former Republican Congressman Patrick McHenry thinks it's a good idea.
I think we haven't addressed nuclear disarmament in over a generation here in the United States. I think it's worthwhile endeavor. I think the complexity of this administration's foreign policy is not well understood by the market. Everything is interconnected Russia, the Middle of East, China, Russia, Ukraine, Middle East, China, Canada. All the trade conversations, all the foreign policy and Department of War actions, They're all connected.
Former Republican Congressman Patrick McHenry is now Bloomberg News contributor. He spoke on Bloomberg's Bounce of Power as well, noting that Newstart was the last remaining major arms control treaty between the US and Russia.
Meanwhile, Nathan, a top Russian military intelligence officer, was wounded in an assassination attempt in Moscow. According to the country's Investigative Committee, Lieutenant General Vladimir Alexeyev was hospitalized after a gunman fired several shots that'side a residential building in northwest Moscow. Alexeyev is first deputy head of a gru military intelligence agency.
Turning to Washington now Karen, President Trump is looking to address American's cost of living concerns through a new online portal.
Starting tonight, dozens of the most commonly used prescription drugs will be available at dramatic discounts for all consumers throughout a new website is called trump rx dot gov.
Speaking at a primetime White House event, President Trump said more than forty medications will be available on the site, including Nova Nordisk's ozembic and wagov for one hundred and ninety nine dollars, as well as emd Serono's fertility treatment.
For example, a single dose of the most common IVF drug in the country, gonal F, will plummet from the highest price in the developed world that we paid. The United States was subsidizing everybody. We paid the highest to the lowest price in the world.
President Trump's new website will get around the pharmacy benefit managers that go between drug makers and insurance companies. Farmer companies say the current system forces them to charge more and limit patient access, but it remains to be seen whether Trump RX will significantly bring down costs and entice more Americans to buy direct rather than through insurance.
Well.
Staying with politics here, Nathan. The race in New Jersey between a one time political director for Senator Bernie Sanders and a former congressman was too early to call in a special House Democratic primary for a seat that was vacated after Mikey Cheryl was elected governor. Former Representative Tom Melanowski started election night with a significant lead over Anna Lilya Mahia, based largely on early results from mail in ballads. The margin narrowed as results from votes cast that day.
We're tallied more than sixty one thousand votes counted. Mahia leeds Melanowski by four hundred and eighty six, or less than one percentage point.
Kay, Let's update you now on the search for Nancy Guthrie, the mother of NBC Today's Show host Savannah Kind of three, who was last seen at her home Saturday night. Earlier this week, Savannah made an emotional plea to her mother's apparent kidnapper at Arizona. This morning, Savannah's brother, Cameron made an appeal of his own.
This is Cameron Guthrie. I'm speaking for the Guthrie family. Whoever is out there holding our mother, we want to hear from you. We haven't heard anything directly. We need you to reach out and we need a way to communicate with you so we can move forward. But first we have to know that you have our mom. We went to talk to you and we are waiting for contact.
Nitharties in Arizona have not identified any suspects or persons of interest, but tests show blood found on Nancy Guthrie's front porch does match her DNA. Investigators have found no proof that Savannah Guthrie's mother is still alive five days after she was taken from her home in Tucson over the weekend.
Time now for look at some of the other stories making news in New York and around the world, and from that, we're joined by Bloomberg's Michael Barr.
Michael, good morning, Good morning, Karen. The northeast, including New York City. We'll get a brief touch of snow this weekend before a frigid blast of Arctic air pushes through the region. Bloomberg minegrologist Rob Carolyn has the latest.
Michael, We've got one more blast of arcticare to get through here in the Tristate area before temperature start to moderate during next week. National Weather Service has an extreme cold warning and effect for the Tristate area from ten am Saturday morning through one one pm Sunday afternoon. We're also under a wind advisory Saturday morning through midnight on Sunday.
So not only do we get the Arctic air moving in, but it's going to be a company by some very strong wins that's going to push the windshills well below zero. At times Saturday night and Sunday morning, you'll feel like it's twenty to twenty five below. I'm Rob Carolyn Bloomberg Radio.
Thank you, sir. Archbishop Designate Ron Hicks will officially take over the Archdiocese of New York today. An installation mass will formally mark the beginning of his leadership. Hicks spoke at a news conference Thursday from Saint Patrick's Cathedral.
You're going to notice that I will reference the number of time Pope Leo the fourteenth. I will strive always to be obedient and respectful to him and also collaborate with his vision.
Hicks succeeds Timothy Cardinal Dolan. Democratic lawmakers responded with anger over reports that President Donald Trump told Senate Minority Leader Chuck Schumer last month he would release sixteen billion dollars in federal funds for the Gateway Tunnel project in exchange for renaming of New York's Penn Station and Washington's Dulles International Airport after him. According to several media outlets, Schumer reportedly told the President that he did not have the
power to approve the request. The Gateway Development Commission has warned that it must stop work today on the New York New Jersey Tunnel project under the Hudson River unless the Department of Transportation immediately releases federal funding tied to the project. Global News twenty four hours a day and whenever you want it with the Bloomberg News. Now, I'm Michael Barr, and this is Bloomberg here.
Well, thanks Michael.
A time now for our Bloomberg Sports update, and for that we bring in John stash Hour.
It's darn NFL Awards night ahead of Sunday Super Bowl the in San Francisco. Matthew Stafford named NFL MVP. The Rams quarterback at age thirty seven through over forty seven hundred yards forty six touchdowns. Garrett name defensive Player of the Year after setting a new sacks record. Mike Rabel name Coach of the Year. Sunday, he'll coach the Patriots of the Super Bowl against Seattle. From baseball, Tarrek Scooble won his arbitration case against the Detroit Tigers. He'll make
thirty two million. That's a Bloomberg Sports updates.
Stay with us. More from Bloomberg day Break coming up after this.
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Good morning on Nathan Hager. It is a staggering number. Six hundred and fifty billion dollars is how much the four biggest tech companies plan to spend this year in the race for AI dominance. We learned last night Amazon alone accounts for nearly a third of that at two hundred billion, raising questions once again but for investors about whether the payoff from AI is going to catch up with all that spend. Joining us this morning is Parmie
Olsen Tech columnists for Bloomberg Opinion, these concerns you share. Parming, good morning.
Hi, good morning.
Yeah.
I mean we've obviously been seeing big tech companies spending a lot on AI and the infrastructure to build AI over the last twelve to twenty four months, so this
is nothing new. But I think what we're really starting to see and what really intrigues me about this is this kind of almost an identity shift for these companies, because if you think about why they're so valuable in the first place, it's that they're asset light, right, like, they have a lot of staff, and they maybe have some data centers, but then they build this incredibly valuable software and they have incredible margins. Now they're becoming these
kind of capital intensive infrastructure operators. They're almost like telecoms now with all this CAPEC spending. So it does feel like this is a gradual shift, and we're seeing it continue to happen, and there's definitely going to be some kind of questioning in the market about whether they deserve these premium valuations when they are spending quite so much.
Yeah, and it's interesting to see how the reaction has played out just through this earning season. When meta platforms reported how much they were going to spend, the markets seemed to like it. Not so much for the rest of these names so far.
What do you make of that?
It's you know, with everything that's happened in the market this past week, and we can talk about the trigger from anthropic as well, it's so hard to you know, identify exactly why markets move the way they do, as I'm sure you know. And let's also just point to the irony here that over the past six months to a year, the markets have been so.
Fraught and volatile.
We've had huge wobbles over concerns that AI is just completely overhyped, and then now we've got this you know, trillion dollar wipeout for any stock that is potentially an AI's path. So it's kind of like, I think we're trying to figure out what the balance is here and it could go either way.
Yeah, let's talk a little bit more about that anthropic news in our last thirty seconds here. We have the legal tool earlier this week and now a new AI tool for financial research. Are we seeing the same kind of reaction in the market to this latest tool for anthropic.
Yes, we are, but it's so strange because the actual tool is not framed, even by Anthropic as being aimed at finance as a general improvement on claud Opus, both for enterprise workflows and for agents and for coding as well. But I think somehow the market is just picked up on the financial element and it's quite you know, these companies,
again going back to the unpredictability of all this. Anthropic even inside the company didn't know that their other feature, claud Code, was going to be so devastating to programming and that so many programmers would use it. They didn't even predict that the latest legal plugin that they announced on Friday, was very quietly released, would have such an
impact on enterprise software shares. So again this is, you know, these companies are coming up with these products so quickly, and they're very productive company, but they don't know the impact they're having.
This is Bloomberg day Break, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak
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