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Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today, Karen.
Trading begins this morning with stocks at or near record highs and chip companies are the ones doing some of the heavy lifting. Let's get more this morning from Bloomberg's John Tucker. John, good morning, Good morning, Nathan. You have the dal finished out of record. The S and P five hundred drove to within a few points of its record close. Two of the strongest forces pushing the S and P five hundred upward were in Vidia, up two
point four percent. Broadcom serves three point three percent. Those are the beneficiaries of all that capex spending, But always lingering at the background, you have worries about whether all the huge spending out of AI is going to produce enough profit to make the investments worth it. Andrew slim at at Morgan Stanley Marvel's at how investors seem to climb a wall of worry.
I think the biggest risk is we go into a kind of a real blow off stage, and every time I start to worry about it, you know, the market selves correct. So I think that's you know, that's a healthy thing. And that's why I don't think we're we're end of cycle.
One of the interesting feature this market is the surge of memory chip prices. It's driven a vast divide between winners and losers. You have companies from Nintendo to big PC brands and even Apple suppliers seeing share slump on profitability concerns. But the memory producers, they're soaring to unprecedented heights, you know, New York. I'm John Tucker, Bloomberg Radio.
All right, John, thank you. Meanwhile, Alphabet is selling Sterling and Swiss frank denominated bonds for the first time, including an ultra rare issue of a one hundred year note following a twenty billion dollar deal in the US. Bloombergy Tech co anchor Caroline Hyde reports is just the latest salvo and the AI spending spree.
He's just got. Also on the heels of Oracle, having sold twenty five billion dollars a debt at the beginning of last week. They got one hundred and twenty nine billion dollars of demand, a record set. You might be bracing for four hundred billion dollars of investment grade debt coming to Finance.
AI and bloombergy Tech co host Caroline Hide. Yesterday, Alphabet raised twenty billion dollars and a seven part dollar debt sale, exceeding earlier expectations for a fifteen billion dollar deal. The offering attracted more than one hundred billion dollars of orders at its peak, among the strongest ever for a corporate bond offering.
Turning to the economy Now Karen, President Trump says his pick to lead the Federal Reserve, Kevin Walsh, could get the US economy to grow at a rate of fifteen percent. President spoke to Fox Business.
If our new head of the FED, who I think is going to be great, and he's he's a really high quality person. But if he does the job that he's capable, we can grow at fifteen percent.
I think more than that.
President Trump says Kevin Walsh was his runner up in his last search for a FED chair. He says it was a big mistake to pick Powell Nathan.
The Justice Department is facing new pressure to release more information about its investigation into Jeffrey Epstein. The lawmakers who sponsored the bill to compel the agency to unseal its Documents were able to review the unredacted files. Republican Thomas Massey says what he saw could lead to more criminal prosecutions.
The user interface is a little clunky at first, but what I saw that bothered me were the names of at least six men that have been redacted that are likely incriminated by their inclusion in these files.
Republican Thomas Massey was joined by Democrat Rocanna. He described those six men as quote very powerful people who raped these underaged girls. Meanwhile, on Capitol Hill, Jeffrey Epstein's convicted former girlfriend, Glane Maxwell, appeared for a video deposition before the House Overside Committee, but it didn't last long.
At any point during your personal relationship with Jeffrey Epstein, were you aware that mister Epstein was sexually abusing minor and adult women.
I would like to answer your question, but on the advice of counsel, are respectfully declined to answer this question and any related questions.
Glenn Maxwell repeatedly invoke the Fifth Amendment during the five minute hearing. It led the overside panels top Democrat Robert Garcia to ask who is she protecting?
We turn out of Arizona, Karen, where The investigation into the disappearance of today's show co host Savannah Guthrie's mother, Nancy, is now into a second week. Authorities are investigating the apparent kidnapping, with a ransom deadline set by her purported abductors, who sent ransom notes demanding money for her return. Savannah Guthrie released a video saying her family is at an hour of desperation.
We believe our mom is still out there.
We need your help.
Law enforcement is working tirelessly around the clock trying to bring her home, trying to find her. She was taken and we don't know where, and we need your help.
Investigators believe Nancy Guthrie was taken against her will from her home. There is growing concerned about her health doud or need for daily medication and pre existing medical conditions.
Well Over in Europe, Nathan Keir Starmer shored up his position as UK Prime Minister at the end of a dramatic day in Westminster that at times seemed like he might be forced to step down. And we get the very latest, so Bloomberg. James Wilcock in London.
James, good morning, Good morning, Karen and Nathan. We learned yesterday that the Labor Party is deeply unhappy, but it isn't yet open to the idea of getting rid of the man in the top job. Publicly, cabinet minister's back to the Prime Minister Labor MPs in Parliament were effusive, but privately they told Bloomberg that challengers weren't yet ready to run rival campaigns and said that certain ministers had
quote bottled it now. Economic data is starting to improve in the UK, but political attention is left on the numbers and more on the dates a special election in two weeks and a local one in May, which is seen as the next time crisis points in London.
James Wilcock Bloomberg, Radia James, thank you staying in the UK. Barclay says it'll return at least twenty billion dollars to shareholders through twenty twenty eight as the bank continues to work through long term plan to slash costs and improve profitability to hit its new targets. Barklay says it'll make efficiency savings, including through artificial intelligence, while allocating more capital to its UK business at the expense of the investment Bank.
Barclay CEO cs Nkotta Krishnan tells Bloomberg the bank is firing on all cylinders.
So I'm very happy they're all doing well. And you know, each of the businesses produced double digitality is in the last year, and we're expecting them to continue. The strongest performing parts have been the ones that have come from the furthest behind, which is our US consumer bank, which has gone from seven percent to eleven percent, and our investment bank, which has also gone up.
That's barclay ceocs Nkotta Krishna on the lenders' earnings for last year beat expectations, helped by its best fourth quarter for tra since reporting change in twenty sixteen.
Well Shares of luxury goods Giant Carrying are up eleven and a half percent this morning. Nathan. The jump came after the French firm release results. I suggest it is now on a path back to growth. Carrying's key Gucci unit saw sales fall less than expected in the final months of twenty twenty five, dropping ten percent in the fourth quarter. Meanwhile, annual recurring operating income at the label exceeded estimates.
Hey Karen, Billionaire Meta Platforms founder Mark Zuckerberg is planning to buy a property in the Miami area. Sources Tel Bloomberg. Zuckerberg and his wife Priscilla Channer looking at purchasing a property on Indian Creek. That's a man made island in Biscayne Bay known as Billionaire's Bunker. Residents of the Ultra Secure Enclave already include Jared Kushner, Ivonka Trump, Amazon founder Jeff Bezos, billionaire Carl Icon, and former New England Patriots quarterback Tom Brady.
Time now for look at some of the other stories making news in New York and around the world, and for that we're joined by A. Bloomberg's Michael Barr Michael good Morning.
Good Morning. Karent Nurses and two major hospital systems in New York City have reached a deal to end a nearly month long strike over staffing levels, workplace safety, and other issues. The tenative agreement involves Matafior and Mount Sinai hospital systems. The three year deal still needs to be approved by union members. Nurses remain on strike at New York Presbyterian, where Jennifer Lynch is a nurse practitioner in Upper Manhattan.
NYP was the only hospital here in New York City to have mass layoffs last year.
Maria Soy is a registered nurse at New York Presbyterian.
What we want people to take away is that this is more than abount money.
The walkout began January twelfth. The FBI says there is no credible threat to the public in Springfield, Ohio, following bomb threats Monday targeting the Haitian community sent to school and county offices. Governor Mike DeWine says the email threats were also received in other parts of the state with similar rhetoric, but it is unclear if they were from the same people.
County offices in Clark County began receiving bomb threats Tokyo about it pipe bombs. These are threats that also referenced Haitians. It was the whole essence of the threats where the Haitians should be out, get rid.
Of the Haitians.
Governor Dwine called it a despicable act. In September twenty twenty four, bomb threats rattled Springfield after then presidential candidate Donald Trump and his running mate JD. Vans doubled down on false claims that Haitian immigrants were abducting and eating pets measles was declared eliminated in the US over twenty five years ago. Now a resurgence is on the rise. Health officials blame the record breaking numbers on declining vaccination rates.
The CDC says twenty six eight have reported cases from California to Florida, where at least two universities have reported cases. In South Carolina, at least nine hundred people have been infected. Global News twenty four hours a day and whenever you want it with the Bloomberg News. Now, I'm Michael Barn. This is Bloomberg. Karen.
Well, thanks Michael. Time now for our Bloomberg Sports Update, and for that we bring in John Stash Howard.
Thanks Karen.
Arizona was a unanimous number one in college basketball. The Wildcats took their twenty three to zero record to Kansas, and Arizona had an eleven point lead back came. The Jayhawks took their first lead midway through the second half. In Kansas won eighty two to seventy eight. Big fight in the NBA in Detroit's win at Charlotte had happened at the third quarter. It started between Jaleen Duran and the Pistons and Mussa Diavata of the Hornets, Isaiah Stewart of
the Pistons left the bench. Four players were ejected. That's your Bloomberg Sports update.
Stay with us. More from Bloomberg day Break coming up after this.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. The market is trading close to all time highs once again for stocks this morning after a viadyal few day is particularly in the big tech sector. This week, the attention turns to a flood of economic data, starting with retail sales out this morning. For more, We're joined by Bloomberg News macro strategist Adam Linton. Adam, good morning. Have we shaken off the worst of the software sell off?
Good morning, Good morning, and thank you for having me so. Yeah, in terms of the softare obviously that is incredibly thematic at the moment. But we did, of course see some signs of life in the tech sector yesterday. If they're looking at the pre market indications, it does appear some
of that enthusiasm is waning. I think it's just playing to more of a broader point that was just so much more nuance around the tech trade at the moment, and people just have a preference to rotate out to that given the uncertainties surrounding the landscape.
And of course we've seen you know, so much attention on the shortage and memory chips. It's leading to a lot of winners and losers. Big gap there.
Yeah, definitely, And again it's just playing to this point where the tech traders has become an increasingly more nuanced I mean, last few it was at a bit of a divide between the likes of Nvidia and Google as some of those large language models came online. Then, as you mentioned, we've seen suddeny software you know plays, and now we've seen some of the memory chip plays as well.
So this is kind of playing to a broader point that the NASDAC could potentially continue to struggle relative to peers. If you look at the NASDAK, it's not hitting new high since October, and then you look at the equas and P five hundred that's hit thirteen records without NASDAQ one hundred hitting a single one. So it does suggest this rotation trade as well as the tech nuance very much remains in play.
Of course, now with Alphabet tapping into the debt markets to try to finance its plans for one hundred and eighty five billion dollars in AI capex this year, now going global with that, with this one hundred year Sterling note, what could that mean for the tech sector.
Yeah, I mean it's definitely interesting given that we saw these setting in Alphabet shares off the back of some of the large capex plans. But I think this is kind of refocused minds a little bit. It shows that there is a real solid base of investors who are still willing to buy that debt. I mean, if you take that sterling notes, as you mentioned, you know there's
solid pension demands in the UK looking for that. If UK debt markets, you know, on a sovereign level of faltering, you know, something that we have seen yesterday, then they could potentially be looking to diversify into some of these sectors in terms of some of the duration. I mean, if you take like the one hundred year note that's going to be on offer, I mean some people will bulk at that and just not turn to that, but it does appear to be a solid investor base willing to buy it up.
And in our last thirty seconds here we're good. As I mentioned, we're going to get all this economic data starting with retail sales today, the delayed non farm payrolls report tomorrow. Are we looking for more volatility off the back of the economic data?
Yeah, I think the idy. I think retail sales could provide some reprieve. I think here we saw this message in from Hassett yesterday, like in the potential four software jobs data. If that is the case, you could see a potential pricing for March April, which are relatively low in terms of FED rate cut bets.
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