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