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President Trump looks to rebuild his tariff trade policy after the Supreme Court struck it down, reviving market jitters plus.
Bitcoin non immune to those tariff anxieties, sliding below sixty five thousand dollars at one point for the second time this month.
And today's the day for Paramount Skydines to submit its best and final offer for Warner Brothers Discovery.
We'll discuss what to expect.
Let's turn our attention though, to well the anxieties that beat up the nows that one hundred, to the extend that it's at session Low's as we speak, and we're currently off by one point three percent. You're seeing anxiety, whether it's AI once again playing into those software names, whether it's the tariff jit and what that means in
terms of long term uncertainty for these businesses. We are pulling back on our risk on attitude, certainly in the world of crypto as well, down two point nine percent. Even his goal gets a little bit of a reprieve ed. Were you watching underneatha hin?
Yeah, let's get to our top. Sorry.
President Trump is looking to rebuild his trade tariff trade policy after the Supreme Court struck down his use of the International Emergency Economic Powers Act or AIPA to impose sweeping global tariffs. In response, his administration signed an executive order to impose a ten percent tariff on imports using an alternative legal authority, and over the weekend, the President announced on truth Social that he intends to raise that rate to fifteen percent or quote, a much higher tariff
and worse. Let's get the latest with Bloomberg Senior Tech editor Mike Shephard. What's the state of play as of right now?
Well, it is moving pretty quickly. Now. The administration's really trying to ensure that all of the trade agreements that reach with trading partners around the world over the past
year don't come undone. They spent the weekend really insisting that the EU and other trade blocks and nations must abide by those agreements, and they tried to offer some assurance that the setback that was dealt to the administration on Friday was temporary and that this fifteen percent tariff we heard the President talk about on Saturday, by truth, social was really just going to be a bridge to more lasting tariffs that would be imposed eventually through other authorities.
Now those authorities are going to take months to investigate and to actually execute and carry out, and that is going to add a whole lot of uncertainty for those trading partners, including the European Union, which is indicating that it's holding off on a final approval and ratification by the Parliament of the deal it struck with Trump last year, and India, which had just reached a hard fought agreement
with the administration a few months ago. They are now off a meeting that was scheduled for later this week to iron out final details there. And then, of course, ed there is China. The President is going to meet the Chiesi in Ping in China a little more than a month from right now, and the question is whether Trump has lost some leverage heading into that meeting with she.
And we saw President Trump with pretty fighting talk for perhaps some countries that thought they'd already cut deals or at least made some progress on inbound investment. Just take a listen to what was said regarding well Taiwan.
In particular, Taiwan came in based all our chip business. They made chips thirty years longer, they made chip chip chip. And now all those companies in Taiwan are building factories in Arizona, Texas and various other places because they don't want to pay tariffs. They're all pouring into the United States.
You spoke of China that, Mike, What of Taiwan. How does this impact tech in particular?
Well, Caro, it's not just Taiwan. It's Japan, and it's South Korea, and it is in the European Union. As part of those trade agreements, the President had negotiated investments in the US from those trading partners. Now the question is, without the leverage of tariffs to enforce and to guarantee
that those investments get made, do they follow through? And we even saw it just a few weeks ago, the confrontation that was brewing with officials in Seoul over the slow pace of ratification of the trade deal by South Korea's legislature and concerns by the US that hey, maybe there won't be enough follow through on the investment's promised
here in the US. We even heard Commerce Secretary Howard Lutnik just last month at the opening of that Micron plant alluding to possibly hire tariffs on goods from those countries if they're companies. And he was alluding to the memory chip makers carrow if they didn't step up their investments here in the US, and he was referring obliquely to Samsung and sk Heinix. But you can paint that more broad lead to other possible tech investments in the US.
If they don't materialize, then what does the administration here do as a consequence?
And leader of s k Heinez just today pledging to boost memory chip output. Mike Shephard with all the latest on tariff's Thank you so much. Look, let's get you the wider impact at President Trump's tariff agenda. Jason Oxman joins US Information Technology Industry Council CEO. Look, what are the companies asking from you at the moment and what are you advising in terms of the uncertainty?
Well, what they're asking for is certainty. And we saw over the weekend that the President very quickly moved to a separate jurisdiction for tariff legitimacy. But I think the broader question is what's the long term going to look like. Companies, as we've been discussing, need certainty in order to make investment decisions. Our trading partners are looking for certainty. The news about the suspension of the trade talks between the
US and India is of concern. The EU suspending moving forward on the trade agreement between the EU and the US also of concern. We're looking for is part of a broader question of the strategy of the United States, and the Trump administration has been very focused on encouraging investment in manufacturing here, encouraging construction of data centers, encouraging export of AI technology from the United States to the rest of the world.
Tariff strategy has a lot to do with that.
Tariffs are good tactics and a lot of negotiation, but they're not a boarder strategy to encourage the kind of investment that we're looking for. So what the tech industry is looking for going forward is a lot more certainty.
I just think of how in video is part of your Information Technology Industry Council, and how they have earnings, and how they need foreign investment to come in and help build the data centers where the GPUs are going in the United States. Jason, do you think ultimately we will come to some sort of agreement. How long can CEOs navigate in this era of uncertainty.
Well, we do have to come to some level of certainty. And as you noted, foreign investment in the United States is a significant part of the manufacturing story. We've seen investment not only in semiconductor infrastructructure announced here in the US from companies around the world Taiwan, Korean, elsewhere, but we've also seen investments in large data center projects, hundreds of billions of dollars of investment coming from outside of
the United States. That's very important. But equally important to that is that tariffs can be a deterrent to the
necessary inputs into that infrastructure. Whether we're talking about the construction of data centers and the inputs that are necessary for the construction there, or what goes into the data centers as semiconductors and other components, or we're talking about the energy infrastructure, including upgrades that are necessary to the transmission grade and the equipment that comes from around the world. For that, that's important to make sure that tariffs don't
interfere with those kind of investments. And then the flip side, of course, is anything that's made in the United States. Ninety five percent of the world's consumers don't live in the United States. It needs to be exported to the rest of the world. I just came back from India yesterday from the AI Impact Summit, and there's a lot of conversation there about how AI from the United States can be exported to the rest of the world. Tariff
infrastructure can interfere with that as well. We want to make sure that works.
Jason, what big piece of news this morning is the European Union basically freezing the ratification process on a deal it already reached with the United States. Just in the context of imports, the EU is twenty percent of US imports. The collective wisdom of your council, how long do you expect this uncertainty and this kind of halt to things that already were in play.
Yeah, I think that's a great point ed and we saw it in India as well. They had a delegation schedule to come this week to the United States and India and the US had a great on stage moment in Delhi this week talking about moving AI forward.
How long will this last? I don't know.
The President announced the use of Section one twenty two that has one hundred and fifty day cap on it. Obviously, the administration is looking at what the tariff strategy is going to be going forward. I think as far as the tech industry is concerned resolving these issues both on the physical trade issues that we've been talking about, but also digital trade. The trade market between the US and the EU in digital trade is close to a trillion dollars.
It's an enormously important market there too. We need that uncertainty resolved as quickly as possible so we can move forward with these trade deals, which in many cases have already been negotiated. We're just waiting for them to be signed.
Jason, if you and your fellow Council members could be in a room with the President today, what's the first thing you'd ask him for or to do.
Yeah, I think it's recognition that tariffs are bad for investment in the kind of things that the administration has prioritized. Look since April, since Liberation Day last year, the landscape has changed significantly for what the administration is hoping to advance.
The Administration has a very clear, very sound, very direct strategy here, and that is to encourage AI adoption around the world of American AI technology, and that requires investment in manufacturing in the US, It requires investment in data centers in the US, It requires a robust semiconductor industry here in the US. And tariffs interfere with the ability of manufacturers and and digital trade to take place between
here and the rest of the world. So the one ask of the administration is as they re evaluate the trade and teriff strategy, and I think this Supreme Court decision gives them an opportunity to do that. You need to look at what the broader goals are, what the broader strategy is to encourage investment in AI and the US, the adoption of AI technology around the world, and how tariffs would interfere with the ability of that to be a successful strategy.
That rationale is one reason why tech stocks rose Friday, a reprieve for the supply chain in particular. Jason Oxman of the Information Technology Industry Council, thank you very much. Now coming up, all eyes are on Nvidia, which reports earnings this week. We have the big preview of what to expect with that stock now completely flat and trading water a little bit ahead of the big moment Wednesday. This is Bloomberg Tech. It's a big week. It's a
big and video week, posting earnings after market Wednesday. It's a stock that's up about two percent year to date, completely flat this Monday morning, and there is a lot of, let's say not anxiety, but we're bracing for Wednesday because the story with the stock is very different to what it has been in the last two or three calendar years. We're trading at twenty four times forward earnings historically on a five year basis thirty eight times. The momentum's gone.
We are kind of on pause with that salesforce down five percent. Later in the program, we're going to talk about what's happening in software right now. Again, that story carries through to earnings. They are putting AI into what they're already good at. That insulates them a bit, but they're caught up with what's having at a bigger picture look at the market.
Right now current Yeah, same with Snowflake, same with Workday. We've got a lot of software earnings to digest. But and as President Trump does move to rebuild his Tarifa agenda.
Investors are navigating renewed trade uncertainty during that very busy week in earnings, as you say, with then video and Salesforce and focus comen Ryinik's been writing all about this and how what are the investors you're talking to thinking about that lack luster trading oomph that we've seen in video of light The ed's so clearly spelled out.
Yeah, I think it's something that's really interesting to have this sort of big macro overlay over in video that's really weighing on the entire market. I mean, we're just saying the shares are pretty much flat now. They were up as much as two percent earlier today, so just getting dragged down by all of this uncertainty with the earnings coming up, I think the thing that everybody's watching for is can they do enough to quell any of these fears and calm the market. I mean, they have
lost a lot of momentum in their shares. They've been trading sideways for a long time now, but there's still the biggest stock in the S and P with the nearly eight percent waiting. So however they move around.
Earnings is going to be really important, and they've lost some of the buzz. You know, they usually would be and raised and shares would gain.
We haven't seen that in the last few quarters, so that reaction, the investor sentiment around this report is paramount.
The stock has fallen in each of the last two postscerning sessions for Nvidia. By the way, salesforce what it's worth is down thirty four percent year to date, and I checked it and I was like, really, but it is case and point of what's happening right now in software and the impact of AI on software.
What are we bracing for?
I mean, this sell off has been so profound. I mean you just said salesforce down thirty four percent. I think it's about fifty percent from the most recent peak. So that's a lot of money coming out of those kinds of stocks, and you know, there's just so much anxiety around that piece of the puzzle, and it seems like investors are just not willing yet to buy the dip and say, Okay, this is the point where they've gotten cheap enough where we think there might be some
compelling stuff here going forward. And I think the thing that's interesting when you're thinking about in VideA is would they be able to quell any of those fears?
Right, they're kind of on the opposite side of the trade.
They're not software, there are hardware, So it seems like there's not a lot of positive catalysts necessarily coming up that would sort of relieve some of the anxiety in the software trades. So you know, we're seeing a lot of selling there and just kind of waiting to see maybe what might be the next thing that gets hit from the sort of fears of software AI disruption.
The most carmon Rhinicky, Thank you very much. Let's get more on tech markets with Shanty Kellerman seven am Co Chief investment Officer. You know, it wasn't that long ago where we're sat at our desks the day of video earnings and all of the literatures calling it a macro level event such as the impact of a single name on the market. Maybe we're a bit flippant then, but calm and set us up nicely right of the state of play. Is this a macro level event this Wednesday?
I don't see it as that. I think it's still incredibly important given it's still largest stock in the SMP, and it does give us insight into what are the ordering patterns because you see all of that big tech investment that's gone through with the stending plans of Amazon, Meta Facebook, those are probably translated into some of the Nvidia orders and it has big impact for the chips providers as well.
So it certainly matters.
Quite a bit, but I think it'll take a really big beat to see the stock actually move because expectations are so high, and that's kind of similar for the whole technology sector. We have. Valuations are very high, so it's got to be earnings that's really going to drive growth in the share price because it's hard to see those valuations going much higher.
In the context of software.
You were in the camp and we had this discussion last week with others that the sell off we've seen AI related sell off, particularly in software, has been indiscriminate.
That word comes up a lot. What's your argument on that? So I think for a.
Long time we've been saying we don't know necessarily know who the AI winners and losers are, and it's kind of like investors actually decided to put their money behind that. With the recent sell off that we had and I think people have realized that they don't necessarily know who those winners are going to be and just sort of indiscriminately sold a lot of the market. I think there will be software company that can do incredibly well out of this, because AI can dramatically reduce their past to
deliver programming. It can make things more efficient, you know, reduce their expenses, deliver better experience. But executing all that is really difficult, and not every software company is going to be able to do it.
Will you learn much from just earnings and fundamentals this time shouting? Could that be where investors decide to try and catch upwarding nice so to speak.
I think it's hard to see people changing their minds so quickly, only in the last few weeks, but the technology sector does move incredibly fast, as we've seen. You know, you can have those moments like Deepsek where things everything seems to change overnight, but usually the selloffs are quick and then it takes time to rebuild the momentum.
Chandy, what is your view? What are you in rooms discussing that, yes, we are at this point where AI is going to eat software instead of software eating the world, or do you think companies will ultimately survive this shift and be able to rebuild from within.
I think a lot of companies will be able to survive it. I think the big thing we're looking at is how much AI is starting to impact industries outside of technology, and that's where valuations are lower. You're starting
to see it come into shopping. You're starting to see it come into the wealth industry to make it easier to comply with regulations, banking and finance certainly, and I think that's where if some of those sectors can start to demonstrate that they're using the technology well and adopting it, then they'll really be rewarded.
Tariffs.
It's very hard to join all of the pieces of bad news, so to speak, together, but the tech sectors view on tariff policy uncertainty right now.
I think obviously lowers rates slightly on places like you know, Asia, China, which helps some of those manufacturing bases, so maybe it marginally reduces some of their costs. I think the long term trend of technology companies trying to diversify their production and having manufacturing you know in the US, in Mexico and still an age as well going to India. I don't think that's going to change because people don't think the uncertainty is going to go away, and we still
will probably have an unpredictable policy environment. So you want to be able to have all of your options open. Probably it helps unbalance some of the you know, the software, the things that are producing actual physical goods. But we'll see how long this rate staves in place. You know, we could all change in one hundred and fifty days as we know.
Chanty Kellerman of seven AM, it's great to have you on the show. Thank you very much. Indeed, Meanwhile, coming up, Blue Ol Capital permanently shuts the gates on one of its funds, making the private credit mark even more jittery after existing AI concerns stick with us. This is Blomberg Tech Morgan's standing investment management is looking away from AI and adding to emerging market bets that are insulated from
the AI boom. Now, the firm's deputy chief investment officer says it is positioning itself for a potential pullback in the crowded tech trade following rising concerns over stretch valuations and heavy capital spending by US tech giants.
Ed Blue Our Capital has permanently shut the gates on one of its funds, preventing investors from withdrawing their cash, and is selling assets to return investor capital. It's the latest sign of frenzy in a one point eight trillion dollar private credit market troubled with worry about overspending on AI.
But in most private credit reporters Cilus.
Brown joins us, if you look at kind of what's happened in the public markets, how some of these names and credit have traded, there is something behind that that's related to technology.
Taken from there, yeah, I think it's I think it's fundamentally important in what going in private credit, I mean private credit and private equity to a certain extent as well. They kind of prided themselves on selecting certain industries that they considered to be anti cyclical, noncyclical, and that kind of that kind of shrinks the pool. And one of the kind of darlings of choice was software as a service.
And so you'll find with Blue al but Blue ally is by no means an anomaly, a big concentration of exposure to software and software as a service. And I think with this kind of transformative, paradigmatic or whatever kind of big word you want to use, effect or likely effect that AI has on that industry makes it very hard for investors to judge even I mean perhaps not short term, but certain the mid term and long term prospects for a lot of these businesses.
And judgment transparency. That's exactly what the private credit market does have much of silas. And it's interesting that Bank of America today is putting out a note saying there is a significant level of misinformation weighing on Blue Out stock and the private credit industry in general. So how can they appease that and really talk to a more transparent era when you're seeing them close funds and indeed not allow people to access money.
You know, I think there's there's there's sort of there's sort of several tectonic plates that are shifting under private credit. I mean with blue al in particular and BDCs more generally. I mean, they are kind of retail or ented funds, and so there's a question about investor investor withdrawals and kind of what happens if you've if you have a
kind of avalanche of withdrawals. At the same time, BDCs have gating systems, which have you know, which blue Out has blue Out, by the way, has redeemed every investor withdrawal so far apart from this new one where it's shifting. It's kind of slightly complicated, but it's shifting a legacy system. Uh, you know, finding a way of shifting a legacy system
investors outside of that system. So you know that there are kind of I don't know what Bank of America's notes was specifically saying, but I mean, I think there's been a lot of noise around blue OL recently regarding investor with investor withdrawals and kind of what will happen with jitteriness amongst amongst the retail client base, but that undergirded by I think a kind of preponderance of software exposure in the in the in the kind of in the dawn of AI I think is concerning investors.
Certainly his most sadus ground all across that story for us, thank you very much. Indeed, Now coming up, President Trump looks to rebuild his global TARA policy after the Supreme Court struck down his use of the IP law. That's next the spring bed Tech.
Welcome Back, Toloomberg text and breaking news crossing the Bloomberg terminal, PayPal is receiving takeover interest from different parties. According to Bloomberg sources, the payments company has fielded meetings with some of its banks amid unsolicited interests. In one case, a large rival is looking at buying the whole of PayPal. In other cases, according to the Bloomberg reporting, different parties are interested in certain PayPal assets. This has stocked this
down thirty percent year to date. It's down almost fifty percent over the last twelve months. And part of the reporting is that the pressure on that stock in the downward trajectory is what is leading to an environment where that takeover interest is in place. PayPal declined to comment on Bloomberg's reporting.
Kra involving one. Now, let's return to our top story today and trade uncertainty as as President Trump reshapes his global tarot policy signaling a potential fifteen percent rate. Now, that debate is front and center in Washington for the National Associate of Business Economics, as a gathering of leading economists is underway and where the Supreme Court's ruling on
Trump's tariff authority is probably a key focus. Bloombag International Economics and Policy editor Michael McKee joint us now and look, the theme of the gathering is actually the great realignment navigating AI demographic and geoeconomic shifts. Let's focus on geoeconomic shifts first, Mike.
What's everyone discussing, Well, everybody's trying to figure out where this is all going and what it will lead to, and there's not a lot of consensus on it yet. The Fed Governor Christopher Waller spoke this morning and said it's very uncertain to them.
He's going to give a major speech tomorrow.
Also, Fed Governor Lisa Cook is talking on AI here tomorrow. Today, we've got some workshops with people from AI companies. There's one underway right now. Peter McCrory of and Thoropik, he is their chief economists, is talking about their economic index and their efforts to track the impacts that AI is having on the labor market and basically saying the same
thing that everybody's saying. It's a major impact, but it's uncertain where they're going for right now, and it's uncertain what kind of effects it will have on productivity and on the labor market. Although right now, what Anthropic is seeing is there's a lot of impact on things like accounting, things that can be automated. The idea that you can get things to do the things that humans do on
a computer is what's changing. But so far they're not seeing a major impact on what the relationship is between humans and other humans. If you have a forward facing job with the public, it's not clear what AI is going to be able to do. He did note though, that the speed at which AI can process tasks that humans do is doubling every seven months, so anything they say now is probably going to be somewhat obsolete. Fairly quickly, Mike.
You join the show on Friday post Supreme Court decision IIPAS struck down. Then there's a series of truth social posts over the weekend in quasi policy announcements and actions. The net result, as far as I can understand it is the overall weighted tariff rate is only slightly marginally lower. On the ground there is that the understanding of everyone else, or is there still great sort of policy uncertainty for tariffs?
Well, there's both.
It is the tariff that's going in place fifteen percent Trump can do legally, so people are operating under the assumption that for now that's going to be the average weighted tariff, but it would change once they start bringing in tariffs on sectors or countries based on some of the other the other sections of the trade law they can use, but those have to have investigations and they have to be shown harm to various sectors or harm from various countries, and so the tariff levels and when
they would be imposed still not certain. What it does is just kind of push out the uncertainty that we have seen. And as Governor Waller said today, it doesn't change much of the Fed's thinking because the Fed is trying to look through the tariffs. It'll be a one time shot to inflation, but now it means it'll happen later than perhaps they thought.
So they just have to wait for it.
And everybody's got to wait and.
See when the President puts these tariffs on to decide what the impact is.
Going to be.
Uncertainty abound, whether it's AI or whether it's trade. Mike McKee on the ground in Washington, thank you very much. Indeed, let's get more on the trade impact investors are watching on the broader earnings on the AI picture with Jed Alibert of argent Capital management. So let's start with tariffs, because that's the key headline everyone faces today. How do you think companies navigate this? Does it change your investment thesis at all?
Yeah, I think you guys covered it well overall. Slight reduction in the effect of tariff right over the next five months as that one thirty or one twenty two investigation period goes for the next five months. But after that, significant uncertainty the midterm elections will have an impact, and yeah, we'll delay investment decisions. I think it'll make people think twice. I think it'll probably make make decision processes slow down
a little bit. And then on the other hand, business leaders investors have been getting used to President Trump and his tactics and preferences and negotiating style over the last you know, he's more than twelve months now here in his second term, and so I think perhaps a bit of normalcy set in. I guess I'm not giving you a very good answer, but I think that there are kind of push and pull in both directions.
So that you are confronted by ongoing uncertainty in a geopolitical environment. But Jed, the eye of the storm has been on software names and the uncertainty the AI injects there. Are you seeing any sort of ability to buy the dip yet?
I think that this private equity, private equity and also strategic investor interest in PayPal is instructive and probably going to happen quite a bit over the next twelve months.
The payment space of which PayPal's a member, has been hit really really hard over the last one year and even further back if you look and so yeah, I think you'll see strategic investors, private equity backed investors start to sniff around areas like payments, areas like software, And it wouldn't surprise me one bit if you see a pickup in M and A in those areas as investors seek value and try to kind of pick through the rubble in an area that's been fairly well bombed out.
In the last six months.
Jed, I appreciate you reacting to that breaking story. Basically, sentiment out there is quite negative right now, tariffs, software, geopolitical risk from the market participant side of the table, particularly focused on the tech sector. Our things as dire as the news headlines would have us suggests at the moment.
It's such a unique environment because We've seen a handful. Most software companies report fairly good fourth quarter twenty twenty five earnings. Most of them issue, you know, reasonably good guidance for twenty twenty six or at least the first quarter of twenty twenty six, and yet investors don't care about that at all. Their concerns lie further down the road a couple of years out as these AI tools continue to develop. The last speaker talked about a doubling
of capacity or capability every seven months. If that continues for the next couple of years on end, you will certainly see some of the more point solutions software companies struggle with AI, you know, capability competition.
And then there will be other software companies that have really deep.
Tentacles inside organizations, really form the backbone of companies workloads and processes and data storage and data analysis, and.
I think that they will thrive.
So it's a mixed picture.
Salesforce snowflake. They be a test of that, wouldn't they. Jed Elberkevargent Capital Management, Thank you very much. I want to go back to Paypower. The stocks up about six percent right now. It been halted for volatility after a big spike post that Bloomberg News report that it is attracting takeover interest. The Bloomberg report details that one big rival is considering buying all of PayPal. In other cases, other potential bidders looking at certain assets, and PayPal has
been meeting with banks about this unsolicited interest. We know this is a stock there's pin under pressure, not just year to date, but over the last twelve months, down about forty six percent in that twelve month period. Now we're up seven percent in the session. PayPal declined to comment. Will continue to track it carract We will.
Will also continue to track Bitcoin. It touched sixty five thousand dollars, in fact went below it as tariff anxiety is borne out on that next visit, Bloomberg Tech as checking on these markets, which bounce off session loads on the day, but was still down by one point two percent on the nasdak as check. We've got about twenty eight names in the green, more than seventy seventy three are in the red right now, and another ugly day
for software. We'll get to that in a moment. Bitcoin is off by almost three percent at one point in the training session, and look on to the more broader chart of bitcoin last couple of days. Again, anxiety just the macro headwinds hit it to the tune of four percent of the last true training days. But it sank the low sixty five thousand dollars. What does that mean in terms of support? But in by Digital Financial Report, Emily Nicole joins us, how catch a break? How many?
Yeah?
It just keeps going, doesn't it. I mean weekends are traditionally a very low liquidity time for bitcoin, especially it's a market that trades twenty four to seven, so it never switches off. And that does mean that we tend to get these outsized price moves, particularly over weekends, and that's what we saw earlier on in the Asia trading day on Monday, or guests overnight for all of us over on the on the western side, and that's what
we've been looking at stay as well. It's kind of gone back above that sixty five thousand mark, but really can't edge much higher.
Emily, is it clear in the markets?
We talk about this sixty thousand dollars support level, right but is it clear in the market right now?
Like what the main driver is? Is it tariff?
Is it some sort of broader geopolitical anxiety that it's getting people to push the button either way.
I mean, bitcoin's not impervious to what's going on with Tariff's, right. It's a high risk asset, so when things like Donald Trumps Tariff's post happen, that is going to impact Bitcoin negatively, just as it did quite a lot of other asset
classes over the weekend. There is, however, this kind of support level that we've been talking about, whether that's sixty thousand, sixty five thousand we're in now really started to see traders consolidate around that marks really don't want bitcoin to go below sixty thousand because that that does mean that kind of we're heading even further lower, and could that's you know, when all bets can be off. So we're
really kind of seeing consolidation around that point. But as you said, it's been a rocky few months, and there's no telling whether it's going to continue to go down or up at the moment.
Bloomberg's Emilie Nicole, thank you very much. Also falling today, well basically everything but shares of software companies is the AI fears that have been rattling stocks across industries continue into a new week. Let's get more with Bloomberg Equacies reports to rhyme for Sellerer. I guess the question, you know, now that we're a couple of hours into the session, is what's going on right I saw BFW headline overnight about Anthropic and a new tool. Seems familiar, but that
was impacting trading in Europe. Is that just carrying over to the US.
Well, we saw a lot of Anthropic related selling on Friday after they announced a new security tool, which sent cyber security stocks down pretty sharply, and we are seeing a continuation of that trade today. There is really broad based weakness within software. Basically nothing is up today and it's just this sort of percolating concern about AI disruption. What is this going to mean for growth, for profit margins,
for pricing power going forward? There is so much concern and fear in the market right now, so much uncertainty. Now we are going to get some results later on this week, so that will hopefully provide a little bit of cleary at least about how management teams are feeling about, you know, the near term in the next coming quarters. We have Salesforce Autodesk work day into a snowflake among the company's reporting, So those will be very closely to
watch out to. But in the meantime, people are just sort of, you know, selling everything they can and really concerned about the latest headlines. It's less fundamentally driven than centiment driven.
Brent phil sort of adding to that sentiment. He's over at Jeffrey's downgrading workday into the earnings that come on Tuesday, really talking about execution risk with the CEO and other executive changes, Just in what way can we see executives navigate what is just a hit from sometimes companies that really have no historical proof point that what they're doing and what they're building is significant to the industry in which they seem to uphend from a share price perspective.
Yeah, they're an extremely difficult position right now, Taught. I've spoken with portfolio managers and investors who basically say there's nothing they can really hope to hear from management teams that are going to ease these fears, because AI is a you know, multi quarter, multi year disruption, you know, entity out there, and so even if they say, you know, we're feeling pretty good about this year, you know, what
does that mean? For five years from now, and it's just going to be very difficult to sort of untie all these knots that out there that have people just sort of selling in mass Now. I will say a lot of these stocks are at all time lows in terms of their valuations. Companies like Salesforce and work Day. I mean, they have basically never been cheaper, so there is a lot that is being priced.
Into them right now.
So if they do indicate that maybe this disruption isn't happening as quickly as some people are afraid of, or if they can talk about ways they're able to sort of ride the AI wave and turn it into a tailwind, it is possible you see some kind of relief rally in these stocks. But right now it just seems like people are so cautious, and you know, they just continue to sell. A lot of these names are down fifty percent or more from their all time highs.
Everywhere's right, vaseelko all over the software trade. Thank you. Now, while we are seeing heightened market on ease of late concern, as Ryan said about the impact of these AI tools dates back years and this as the popularity in demand for some of them have taken even their own creators by surprise. The most showing Gafari is here with us. You've been looking at the impact most recently of clawed code and how that really took the leaders of Anthropic by surprise.
That's right.
So it was started as essentially a side project by a staffer who I talked to who said that, you know, it was being used internally by Anthropics engineers, and it took on so quickly that CEO Dario Amedi sort of asked him before releasing to the public, do you have to force engineers.
To use this or why is everyone all of a sudden adopting this?
And so that's sort of how this really surprised tool ended up now not just affecting AI, but impacting other industries as well.
Strean also late Friday we reported some kind of the targets that open AI has. I call them targets, but I guess forecasts for what revenue will be come the end of this decade.
What do we need to know? That's right.
So you see their revenue targets have increased, and you know, I think that right now, what we're seeing right is these companies start to plan out there are mega fundraising deals happening.
As we've reported on.
There are reported plans in the long term toward potential IPO, so what we're seeing now is sort of opening eye share. As we reported with investors, some of those adjusted forecasts.
Revenue to hit two hundred and eighty billion dollars in twenty thirty, so wait around for that, Bloomberg Shering Gufari, Thank you very much. Another piece of news, and Propic CEO Dario ama Day will meet with US Defense Secretary Pete Hegsef tomorrow.
According to a source.
This has contract talks between the AI startup and the Pentagon remained deadlocked over the company's insistence on guardrails for use of its technology. In a statement today, and Propic said it was committed to using AI to support national security CAROC.
Now coming up ed, we'll have the latest on efforts to my Warner Brothers assets. Listen, bloom Bg Tech.
We have a normal.
Regulatory path ahead. There's nothing uniquely challenged about that process. We're about it in the middle of it with the DoD, with the European regulators, with regulators all over the around the world, and with Data turney in general. This is a process that we're very confident.
I think we're going to navigate.
That was Netflix Coco Ted Surrenders speaking to us last week about its bid to take over Warner brother Discovery Studios and streaming business. But already the regulatory landscape is shifting. Bloomberg reporting Saturday, the Justice Department is investigating whether the deal would give Netflix too much power over filmmakers and other content creators. Let's get the latest with Bloomboos Lucas Shaw, who leads the screen Time team and coverage of that industry.
A lot's changed in five days, but basically from Josh Cisco's reporting, it looks like actually the DOJ probe or review is wider than mister Surrandos told you and I that it was kind of procedural and standard.
Yeah, there's been a lot of back and forth about what exactly is happening with the DJ. A normal DOJ probe would look at just what called Section seven. I believe, without getting into the antitrust weeds, there is a belief and based on the literature that is being sent to creators and producers in Hollywood, that this probe expands beyond that. I would say that I don't think that that much has changed from that interview we did with Ted just a few days ago.
I mean, yes, you had our reporting on the DJ.
You also had President Trump call on Netflix to fire it's board members Susan Rice over some comments she made. But what we're really coming down to is what is going to be this next Paramount offer, which we're expecting soon.
And I'm expecting it to be higher, because.
Yeah, I mean, look, Paramount teas that it would get to at least thirty one dollars to share. Their most recent one was thirty dollars a share. There was some reporting out there from variety of thirty two dollars a share. We've heard conflicting reports about how high they would go. I know from speaking to people in and around David Ellison, who's the CEO and chairman of Paramount, that they feel like they need to put forth an offer that will
make it hard for Netflix to match. Because Netflix shareholders are getting a little restless about.
This, Lucas it's an ongoing process and reading the reporting, it's going to go on for a long time, right, But remind us of the differences and the bids. Simply that for Netflix it's the studios and streaming platform. But for paramount S Guidearts, it's the entirety of Warner Brothers Discovery.
Yeah, I mean you just laid it out, Warner brother excuse me.
Paramount is going for the whole company that includes all the cable networks you know, CNN, TBS, Discovery Channel and so forth. There's been a debate between Warner Brothers Discovery and Paramount as to the value of those global networks that group that it would be be spun out as because that's one of the big points of difference between the Paaramount offer and the Netflix offer. You know, Paramount believes that it's bit as superior because those networks aren't
worth that much. Warner Brothers thinks they're worth more, and that has enabled Netflix to prevail thus far, even though the immediate cash to Warner Brothers shareholders would be less.
What are investors saying, Lucas about where they swayed.
Well, it depends on which investors, right.
I've certainly spoken to some who are eager for Warner Brothers to engage with Paramount, which is what's been happening over the last week. I think there's some concern on the part of investors about the regulatory risk for the Netflix deal. They seem more concerned about the Netflix risk and the paramount risk.
But then there are.
Plenty of other investors who I think have felt less compelled to speak out because they're happy to follow the Warner Brothers' lead, and I think most of them would be happy for the thirty dollars to share, thirty two dollars to share, whatever it may be.
Lucas very quickly, are just looking back on that interview you asked in like, why does Netflix not want the legacy cables? His answer straightforward, that's not the business we're in. And we talked about the movie theaters. Those two points.
Yeah, well, look, Netflix has never had any interest in the cable business because the cable business is shrinking and Netflix and streaming are in many ways replacing it. The movie theater one is the one that's been a bugaboo for Netflix because people are having a hard time believing Ted surround us when he says they're going to put movies in theaters. But he has said it again and again and again.
Bugaboo. Ah, that's got me in my head now, bloon. Vice, Luca, Sure, thank you, very much. Indeed, look, that does it for this edition of Bloomberg Tech. But let's check in in on some of these key stocks. They're on the move. We anticipate a big week for earnings Wednesdays in video, salesforce coming out, as well as software names getting crushed. So are payments, so we're delivery companies after that note from Subtrini Research, it's a big one.
Yeah, And it sounds like from our guests, particularly on the software side, the bar is still high for management to actually change the directory of that sector. And of course in video has fallen in each of the last two post earning sessions recap on the podcast, we have some really interesting people on the show today.
You know where to find it.
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