Amazon Selloff on Massive Spend; Bitcoin Traders Buy Dip

Bloomberg Audio Studios, Podcasts, Radio News.
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.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business opp This is Bloomberg Daybreak.
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
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