Trump Dominates Iowa; Highlights of Davos

Good morning. 0:00:03.080 --> 0:00:05.920 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:05.960 --> 0:00:07.440 stories we're following today. 0:00:08.200 --> 0:00:11.719 We begin in Iowa, where Donald Trump has cruised to 0:00:11.840 --> 0:00:15.040 victory in the first in the nation Republican Caucasus. Now 0:00:15.160 --> 0:00:18.319 the former president is calling on his rivals to drop out. 0:00:18.640 --> 0:00:21.680 And I really think this is time now for everybody 0:00:22.320 --> 0:00:24.720 our country to come together. We want to come together, 0:00:25.760 --> 0:00:29.400 whether it's Republican or a Democrat, or a liberal or conservative. 0:00:29.440 --> 0:00:32.320 It would be so nice if we could come together 0:00:32.479 --> 0:00:35.360 and straighten out the world, and straighten out the problems, 0:00:35.400 --> 0:00:37.960 and straighten out all of the death and destruction that 0:00:38.000 --> 0:00:38.840 we're witnessing. 0:00:39.400 --> 0:00:42.120 The former president won the Hawkeye state with fifty one 0:00:42.200 --> 0:00:45.239 percent of the vote. Florida Governor Ron DeSantis came in 0:00:45.280 --> 0:00:48.159 a distant second with twenty one point three percent. That's 0:00:48.200 --> 0:00:50.680 after Poul suggested he had dropped a third place before 0:00:50.720 --> 0:00:51.360 caucus night. 0:00:51.760 --> 0:00:54.400 In spite of all of that that they threw out us, 0:00:54.840 --> 0:00:59.320 everyone against us, we've got our ticket punched out of Iowa. 0:01:00.080 --> 0:01:02.920 Governor DeSantis came in just ahead of Nicky Haley with 0:01:03.080 --> 0:01:06.360 nineteen point one percent of the vote. Entrepreneur Vivik Graham 0:01:06.360 --> 0:01:09.280 Oswami dropped out of the race and endorse Trump after 0:01:09.400 --> 0:01:11.360 finishing fourth well Nathan. 0:01:11.400 --> 0:01:14.720 The resounding victory sets up the former president very well. 0:01:14.720 --> 0:01:18.759 Bloomberg Politics contributor Rick Davis explains how the nomination race 0:01:18.760 --> 0:01:20.840 could now unfold for Donald Trump. 0:01:21.240 --> 0:01:24.160 If Trump does run the table and gets both Iowa 0:01:24.240 --> 0:01:28.120 New Hampshire a really unusual thing, then he's got four 0:01:28.760 --> 0:01:32.160 weeks to consolidate his hold on South Carolina. And we've 0:01:32.200 --> 0:01:35.399 seen early polling the campaign hasn't gotten to South Carolina yet, 0:01:35.680 --> 0:01:39.000 so it's not reflective of a real campaign. But right 0:01:39.040 --> 0:01:42.480 now he's twenty points ahead of Nicki Haley, who calls 0:01:42.480 --> 0:01:45.040 it home. So and then after that, the really next 0:01:45.080 --> 0:01:48.880 big thing is Super Tuesday, So he could actually walk 0:01:48.920 --> 0:01:52.040 into Super Tuesday basically unchallenged at that point. 0:01:52.320 --> 0:01:55.840 And Bloomberg Politics contributor Rick Davis says a Trump presidential 0:01:55.960 --> 0:01:59.680 victory could result in sweeping changes for US policies on trade, 0:01:59.720 --> 0:02:02.919 over sees, conflicts, taxes, and civil rights. 0:02:03.280 --> 0:02:05.640 Karen Donald Trump's victory will be the talk of the town. 0:02:05.680 --> 0:02:08.920 At the World Economic Forum in Davos today, President Biden 0:02:09.000 --> 0:02:12.720 is once again skipping the event. Microsoft CEO Satia Nadella 0:02:12.840 --> 0:02:15.120 is in Davos. He talked to us about the importance 0:02:15.160 --> 0:02:16.360 of election integrity. 0:02:16.680 --> 0:02:20.720 Misinformation and election interference is going to be a real 0:02:20.840 --> 0:02:24.200 challenge that we all have to tackle. Me as a 0:02:24.280 --> 0:02:26.560 company have to do our best work right whether in 0:02:26.560 --> 0:02:29.800 the context of AI. We have lots of initiatives around 0:02:29.800 --> 0:02:32.760 content IDs and other things that will then help us. 0:02:32.960 --> 0:02:35.760 On a separate note, Microsoft CEO Satia Nodella said he 0:02:35.800 --> 0:02:38.680 wants good governance and steadiness at OpenAI, but he says 0:02:38.680 --> 0:02:42.040 he's not worried about the company's nonprofit structure and doesn't 0:02:42.080 --> 0:02:44.720 want greater control over his partner Well. 0:02:44.680 --> 0:02:47.240 Nathan out to the latest developments in the Middle East, 0:02:47.240 --> 0:02:49.880 around has attacked what it's said was an Israeli spy 0:02:50.000 --> 0:02:52.760 base in a rock with missiles. If true, it would 0:02:52.800 --> 0:02:55.720 be the first direct strike on Israeli interest since this 0:02:55.800 --> 0:02:58.840 started the war in Gaza, and a move that escalates 0:02:58.840 --> 0:03:02.600 the regent's conflicts. Israel is not commented and rarely does 0:03:02.720 --> 0:03:04.560 with such incidents and. 0:03:04.440 --> 0:03:07.360 Who the militants have attacked a US owned containership in 0:03:07.400 --> 0:03:09.280 the Red Sea Karen. That vessel was hit by a 0:03:09.320 --> 0:03:12.640 ballistic missile but avoided significant damage or injuries to the crew. 0:03:13.000 --> 0:03:15.800 This latest attack in the Red Sea comes after American 0:03:15.840 --> 0:03:18.040 and British forces bonded the hoof He's in an effort 0:03:18.040 --> 0:03:19.960 to deter them from disrupting global shipping. 0:03:20.520 --> 0:03:23.800 Well to Wall Street Now and Nathan Bank earnings kickoff 0:03:23.880 --> 0:03:27.120 this holiday shortened trading week with Goldman Sachs and Morgan 0:03:27.240 --> 0:03:31.480 Stanley reporting before the opening bell. Bloomberg Intelligence Senior analyst 0:03:31.520 --> 0:03:34.320 Alison Williams says she'll be watching how the trading desks 0:03:34.360 --> 0:03:35.800 performed in the fourth quarter. 0:03:36.160 --> 0:03:39.680 Morgan Stanley and Goldman Sachs are the two top players 0:03:39.720 --> 0:03:44.520 in that business. Goldman was the leader, Morgan Stanley sort 0:03:44.520 --> 0:03:47.240 of took that position for several years, but now Goldman 0:03:47.320 --> 0:03:49.800 Sachs is sort of back in the lead, and so 0:03:49.840 --> 0:03:52.920 I think that's that's something that investors are watching for, 0:03:53.320 --> 0:03:55.760 you know, more of the interest of bragging rights because 0:03:55.800 --> 0:03:58.960 as the top two players, they are profitable in those businesses. 0:03:59.280 --> 0:04:02.600 And Bloomberg and Eligence senior analyst Allison Williams says investment 0:04:02.640 --> 0:04:04.920 banking fees and the outlook for a twenty twenty four 0:04:04.960 --> 0:04:07.280 recovery will be a focus for these banks. 0:04:07.640 --> 0:04:11.080 Hearin retirement savers are putting more money into stocks. That's 0:04:11.120 --> 0:04:13.400 among the findings of a new Bloomberg survey, and we 0:04:13.440 --> 0:04:16.360 get more in this report from Bloomberg's John Tucker, John. 0:04:16.279 --> 0:04:19.839 And Nathan latest Bloomberg Marcus Live Pulse survey finds almost 0:04:19.880 --> 0:04:22.680 half the respondents that they were putting more funds into stocks. 0:04:23.040 --> 0:04:26.240 It's a response to rising prices. Real estate and commodities 0:04:26.240 --> 0:04:29.080 are among the other choices, but shares of companies whose 0:04:29.120 --> 0:04:31.839 earnings are expended to rise with prices were clearly the 0:04:31.960 --> 0:04:36.200 preferred option. Now, this potentially offers a long term tailwind 0:04:36.279 --> 0:04:40.000 for stocks as societies get older. Now, this doesn't necessarily 0:04:40.000 --> 0:04:42.800 make stocks the right choice to counter inflation. You'll remember 0:04:42.800 --> 0:04:45.520 in the inflation are in nineteen seventies, stocks were the 0:04:45.720 --> 0:04:49.880 worst performing acid in real terms. I'm John Tucker, Bloomberg Radio. 0:04:50.320 --> 0:04:52.840 All right, John, thanks well. In company news, Apple as 0:04:52.839 --> 0:04:55.440 we're moving up blood oxygen feature from its latest smart 0:04:55.480 --> 0:04:57.880 watches to get around a US band stemming from a 0:04:57.880 --> 0:05:01.640 pen dispute with the Massimo had ruled in October that 0:05:01.680 --> 0:05:05.960 Apple's devices violated Massimo patents related to blood oxygen measurement 0:05:06.240 --> 0:05:08.640 that led Apple to pause sales with the smart watches. 0:05:08.680 --> 0:05:11.120 Just ahead of Christmas, though an interim stay allow the 0:05:11.120 --> 0:05:13.520 company to bring the products back late last month. 0:05:13.720 --> 0:05:17.279 And Elon Musk says he is uncomfortable growing Tesla's AI 0:05:17.400 --> 0:05:20.640 capacity without a larger share of voting control. The automaker's 0:05:20.680 --> 0:05:23.280 currently investing more than a billion dollars into its Dojo 0:05:23.400 --> 0:05:27.320 supercomputer product and working to develop humanoid robots, but in 0:05:27.360 --> 0:05:30.200 a post on his social platform x, Musk said without 0:05:30.200 --> 0:05:33.280 twenty five percent of voting control in Tesla, he'd prefer 0:05:33.320 --> 0:05:34.880 to develop products independently. 0:05:35.520 --> 0:05:38.760 And Nathan Microsoft is opening up its artificial intelligence assistant 0:05:38.800 --> 0:05:42.600 to consumers and making the corporate aversion available to smaller companies. 0:05:42.640 --> 0:05:44.360 It's all part of an effort to increase the number 0:05:44.400 --> 0:05:47.760 of paying customers for the new services. Microsoft is selling 0:05:47.800 --> 0:05:51.000 a twenty dollars a month consumer version of Copilot with 0:05:51.080 --> 0:05:54.800 access to open AI's latest chat, GPT technology, and image 0:05:54.880 --> 0:06:00.840 creation features. If a look at some of the other 0:06:00.920 --> 0:06:03.080 stories making news around the world. For that, we're joined 0:06:03.120 --> 0:06:05.599 by Bloomberg's Amy Moore's Amy Good Morning. 0:06:05.640 --> 0:06:08.320 Good Morning, Karen. Most of the East Coast now has 0:06:08.400 --> 0:06:11.960 been without snow for a couple of years until now. 0:06:12.120 --> 0:06:15.920 The Midwest also dealing with some dangerously cold temperatures. Let's 0:06:15.920 --> 0:06:18.360 get more from Bloomberg meteorologist Rob Carolyn. 0:06:18.400 --> 0:06:20.800 Week area of low pressure bringing some snow to areas 0:06:20.800 --> 0:06:22.480 that haven't really seen a whole lot of snow over 0:06:22.480 --> 0:06:25.040 the last two years. We're having some snow this morning 0:06:25.080 --> 0:06:26.960 in the Baltimore area, but it'll be ending the New 0:06:27.040 --> 0:06:29.080 York City area. We'll see the light snow end by 0:06:29.160 --> 0:06:32.320 early afternoon, and Boston light snow will continue throughout the 0:06:32.400 --> 0:06:34.920 day and and during the evening. Looks like the Boston 0:06:34.920 --> 0:06:36.880 area picks up an inch or two before it mixes 0:06:36.920 --> 0:06:39.360 a little bit of rain. An additional intro so possible 0:06:39.360 --> 0:06:42.039 in the New York City area, very little additional accumulation 0:06:42.120 --> 0:06:44.720 around the district in Baltimore. Also, looks like the cold 0:06:44.760 --> 0:06:47.000 in the Upper Midwest will continue for a while longer, 0:06:47.000 --> 0:06:48.920 and then it shifts east this weekend. 0:06:48.600 --> 0:06:50.920 And we continue to track the winter weather, and we'll 0:06:50.960 --> 0:06:53.440 hear from Rob throughout the morning here on Bloomberg Now. 0:06:53.440 --> 0:06:55.320 We've been telling you about the results of the Iowa 0:06:55.400 --> 0:06:58.800 Caucus and part of the fallout, entrepreneur vivek Ramaswami is 0:06:58.880 --> 0:07:00.720 dropping out of the for president. 0:07:00.880 --> 0:07:04.760 As of this moment, we are going to suspend this 0:07:04.839 --> 0:07:08.719 presidential campaign, and this is going to have to be. 0:07:10.200 --> 0:07:13.320 There is no path for me to be the next 0:07:13.360 --> 0:07:16.320 president absent things that we don't want to see happen 0:07:16.400 --> 0:07:16.960 in this country. 0:07:17.040 --> 0:07:20.320 Namaswami suspended his bid after a disappointing showing in the 0:07:20.320 --> 0:07:23.000 Iowa caucus, deciding instead to throw his support to former 0:07:23.080 --> 0:07:25.840 President Trump, who was declared the winner last night. He 0:07:25.920 --> 0:07:28.800 told his supporters there are two America First candidates and 0:07:28.800 --> 0:07:31.800 that he called Trump earlier in the evening to congratulate 0:07:31.920 --> 0:07:35.240 and endorse him. Secretary of Defense Lloyd Austin out of 0:07:35.280 --> 0:07:37.800 the hospital and recovering now. The Pentagon says he was 0:07:37.840 --> 0:07:41.400 released from Walter Reed National Military Medical Center yesterday. He 0:07:41.520 --> 0:07:44.680 was admitted the hospital two weeks ago from complications from 0:07:44.760 --> 0:07:49.360 prostate cancer surgery. Three shows dominated the Emmys last night. 0:07:53.560 --> 0:07:57.880 The HBO drama Succession won six awards, including Best Drama Series. 0:07:58.200 --> 0:08:00.960 Effx Is The Bear won Best Colum had won several 0:08:01.000 --> 0:08:04.920 acting honors. Netflix Limited series Beef won five trophies at 0:08:05.000 --> 0:08:08.280 last night ceremony. Quenta Brunson's win for Comedy was the 0:08:08.320 --> 0:08:11.400 first for a female block actor in more than forty years. 0:08:11.840 --> 0:08:14.000 Global News twenty four hours a day and whenever you 0:08:14.040 --> 0:08:16.600 want it with Bloomberg News Now. I'm Amy Morrison. This 0:08:16.640 --> 0:08:17.679 is Bloomberg Karen. 0:08:17.560 --> 0:08:19.280 All right, Amy, thank you. What we do bring you 0:08:19.360 --> 0:08:22.840 news throughout the day right here on Bloomberg Radio. But now, 0:08:22.920 --> 0:08:25.640 as Amy said, you can get the latest news on demand, 0:08:25.640 --> 0:08:28.520 and that means whenever you want it. Just subscribe to 0:08:28.560 --> 0:08:30.880 Bloomberg News Now and you can get the latest headlines 0:08:30.920 --> 0:08:33.160 right at the click of a button. Get informed on 0:08:33.320 --> 0:08:36.400 your schedule. You can listen and subscribe to Bloomberg and 0:08:36.520 --> 0:08:39.839 News Now on the Bloomberg Business app, Bloomberg dot Com 0:08:39.840 --> 0:08:43.640 plus Apples, Spotify, and anywhere else you get your podcasts. 0:08:48.080 --> 0:08:52.079 Time now for the Bloomberg Sports Update, Here's John stash Hour, John. 0:08:52.240 --> 0:08:55.000 Karen An NFL put out doubleheader on a Monday. The 0:08:55.000 --> 0:08:57.640 Buffalo game, of course, moved from Sunday because of all 0:08:57.720 --> 0:09:00.360 the snow there, and they did shovel away at least 0:09:00.440 --> 0:09:02.600 much of the snow in the stands and the fans 0:09:02.600 --> 0:09:05.840 were able to see the Bills defeat Pittsburgh thirty one 0:09:05.960 --> 0:09:08.640 to seventeen. Bills jumped in front twenty one to nothing 0:09:08.720 --> 0:09:11.120 and held on. Josh Allen threw for two touchdowns, also 0:09:11.160 --> 0:09:13.040 had a fifty two yard TV run. The Bills were 0:09:13.080 --> 0:09:15.199 six and six, they've won six in a row and 0:09:15.240 --> 0:09:19.040 they will host Kansas City on Sunday night. The Tampa 0:09:19.040 --> 0:09:21.600 Bay Bucks were four and seven. Since then they've gone 0:09:21.679 --> 0:09:25.160 six and one. Meanwhile, Philadelphia was ten and one, closed 0:09:25.160 --> 0:09:27.760 out the season going one and six. It was all 0:09:27.880 --> 0:09:31.160 Bucks last night, thirty two to nine. Baker Mayfield through 0:09:31.200 --> 0:09:33.400 for three hundred and thirty seven yards three touchdowns. They 0:09:33.440 --> 0:09:37.120 covered twenty three, forty four and fifty six yards and 0:09:37.160 --> 0:09:40.000 now the Bucks get ready to play the Lions in 0:09:40.080 --> 0:09:44.280 Detroit on Sunday. Meanwhile, Bill Belichick is a coaching free 0:09:44.280 --> 0:09:46.680 agent and he has had his first job interview, and 0:09:46.720 --> 0:09:49.040 it's with the Atlanta Falcons. That's, of course, the team 0:09:49.080 --> 0:09:51.839 the Patriots had the big comeback against in Super Bowl 0:09:51.880 --> 0:09:54.360 fifty one. Falcons not a particularly good team under five 0:09:54.440 --> 0:09:58.280 hundred that they do not have a good quarterback. Belichick's sons, 0:09:58.440 --> 0:10:00.760 Steve and Brian, who were both the assistance to him 0:10:00.800 --> 0:10:03.839 in New England, have been told by Giron Mayo, who 0:10:03.880 --> 0:10:06.480 replaced Beeblechick as a new head coach, that they can 0:10:06.640 --> 0:10:10.120 remain with the Pats Jim Harbaugh had an interview with 0:10:10.240 --> 0:10:12.760 the La Chargers. Celtics went to thirty one to nine. 0:10:12.800 --> 0:10:15.000 They wanted Toronto one O five to ninety six. The 0:10:15.000 --> 0:10:18.440 Wizard lost to lowly Detroit at home, and the Warrior 0:10:18.480 --> 0:10:22.640 struggles continue. They lost in Memphis. Just dashaward Bloomberg's. 0:10:22.160 --> 0:10:28.320 Plots from coast to coast, from New York to San Francisco, 0:10:28.640 --> 0:10:32.720 Boston to Washington, d C. Nationwide on Syrias exam the 0:10:32.760 --> 0:10:37.480 Bloomberg Business app in Bloomberg dot Com. This is Bloomberg Daybreak. 0:10:38.640 --> 0:10:39.120 Good morning. 0:10:39.120 --> 0:10:40.000 I'm Nathan Hager. 0:10:40.360 --> 0:10:43.400 Donald Trump's front runner status in the twenty twenty four 0:10:43.480 --> 0:10:47.560 Republican presidential race now appears sealed. That's after the former 0:10:47.600 --> 0:10:51.240 president cruise to victory in last night's Iowa caucuses, with 0:10:51.320 --> 0:10:54.760 many news organizations calling the race before some caucus sites 0:10:54.920 --> 0:10:58.479 even opened in the Hawkeye state. For some morning after analysis, 0:10:58.480 --> 0:11:01.079 we are joined by Greg Valier, the chief US policy 0:11:01.120 --> 0:11:05.520 strategist at AGF Investments. Greg, Good morning. When we listen 0:11:05.600 --> 0:11:08.640 to former President Trump's victory speech, he sounded like a 0:11:08.679 --> 0:11:10.600 candidate who's sealed up the nomination. 0:11:10.920 --> 0:11:11.200 Has he? 0:11:11.880 --> 0:11:14.880 Oh? I think he has? Nathan, Maybe we go until 0:11:14.960 --> 0:11:18.640 March fifth, which is super Tuesday. I think after March fifth, 0:11:18.679 --> 0:11:21.280 Trump will be the presumptive nominee. 0:11:21.640 --> 0:11:24.840 Why do you think he's not the presumptive nominee necessarily? 0:11:25.240 --> 0:11:28.360 Now, well, let's see how New Hampshire turns out. It's 0:11:28.400 --> 0:11:32.520 possible Nikki Haley could have a strong second. Let's see 0:11:32.520 --> 0:11:35.520 how South Carolina turns out a couple of weeks later, 0:11:35.960 --> 0:11:39.400 where Haley could do well. But I'd out of caution. 0:11:39.840 --> 0:11:42.160 I will say maybe this goes until March fifth, but 0:11:42.200 --> 0:11:43.720 I don't think it's going any longer. 0:11:44.120 --> 0:11:48.680 Okay, So, coming out of the Iowa caucuses, the former 0:11:48.720 --> 0:11:52.360 president had more than double the previous record when it 0:11:52.400 --> 0:11:55.840 comes to the margin of victory, coming in nearly thirty 0:11:55.880 --> 0:11:59.760 points ahead of Ron DeSantis. But turnout in this race 0:12:00.360 --> 0:12:02.120 was as low as it's been in more than a 0:12:02.200 --> 0:12:05.040 decade by some counts, as low as it's been in 0:12:05.200 --> 0:12:07.600 a quarter century. I mean, what does that tell you 0:12:07.920 --> 0:12:09.800 about where things stand in the race now? 0:12:10.520 --> 0:12:12.760 I think it shows as a lot of people have 0:12:13.240 --> 0:12:17.760 commented that Donald Trump's supporters would walk over broken glass 0:12:18.240 --> 0:12:21.240 to go to a polling place to vote for Donald Trump. 0:12:21.480 --> 0:12:24.680 His base is really adamantly in favor of him. 0:12:25.520 --> 0:12:30.319 Well, what about Ron DeSantis? The polls coming into this 0:12:30.440 --> 0:12:34.920 caucus appeared as though he might slip to third place, 0:12:34.960 --> 0:12:38.520 but he managed to squeak out second. Does he have 0:12:38.640 --> 0:12:39.360 momentum now? 0:12:40.240 --> 0:12:42.600 Not a lot. I mean it was still a fairly 0:12:43.000 --> 0:12:46.840 week second. And I think that DeSantis is in trouble 0:12:46.880 --> 0:12:49.400 in New Hampshire. I think Nicky Haley will have a 0:12:49.440 --> 0:12:52.760 fairly good night in New Hampshire next week, but DeSantis 0:12:52.840 --> 0:12:55.000 is on really thin ice right now. 0:12:55.840 --> 0:12:59.480 Okay, so how about Nicki Haley? You mentioned that she 0:12:59.559 --> 0:13:01.800 could have a good night in New Hampshire. How do 0:13:01.840 --> 0:13:05.480 you see things playing out in New Hampshire a week 0:13:05.520 --> 0:13:06.120 from today? 0:13:06.720 --> 0:13:09.120 Yeah, I don't think Trump will get fifty percent like 0:13:09.160 --> 0:13:11.280 he did last night. I think he got fifty one 0:13:11.400 --> 0:13:13.920 last night. I think it'll be closer, but I think 0:13:13.960 --> 0:13:18.160 Trump will still win. Then South Carolina a couple weeks 0:13:18.400 --> 0:13:21.480 later could be really interesting because of course Haley is 0:13:21.520 --> 0:13:26.400 from South Carolina, but Trump is very popular there. I 0:13:26.640 --> 0:13:30.000 just don't see a big opening left for Desantus. 0:13:30.640 --> 0:13:35.320 So with the race heading into New Hampshire next week, 0:13:35.440 --> 0:13:39.400 South Carolina the week after that, going into Super Tuesday, 0:13:39.480 --> 0:13:43.360 you don't see it as necessarily being a long slog. 0:13:43.679 --> 0:13:48.840 But how does this race shape President Trump? Former President 0:13:48.920 --> 0:13:52.760 Trump up for a general election contest? Should he be 0:13:52.800 --> 0:13:54.880 thinking about the general election at this point? 0:13:55.080 --> 0:13:59.280 Yeah, the general election looks roughly tied, Paul. Some poles 0:13:59.280 --> 0:14:01.840 showed Trump ahead by two or behind by two. A 0:14:01.880 --> 0:14:05.560 lot of wildcards, Nathan, whether it's immigration. You look at 0:14:05.559 --> 0:14:09.080 the Chinese election this past weekend, you look at a 0:14:09.160 --> 0:14:12.560 need to support Ukraine, you look at what's happening right 0:14:12.600 --> 0:14:15.000 now in the Red Sea. There's a lot of big 0:14:15.040 --> 0:14:16.600 wildcards still to play out. 0:14:17.600 --> 0:14:21.040 And how should President Biden be reacting to this result? 0:14:21.120 --> 0:14:26.040 You mentioned immigration, and going into the race, immigration was 0:14:26.040 --> 0:14:28.840 seen as the biggest issue for many of the voters 0:14:29.000 --> 0:14:32.080 going in here. How should President Biden react to a 0:14:32.120 --> 0:14:33.200 Trump victory in Iowa? 0:14:33.680 --> 0:14:36.240 Well, I'm told that in private he's furious that he's 0:14:36.280 --> 0:14:39.720 not doing better because he feels the economy has improved. 0:14:39.720 --> 0:14:42.720 And he's right, the economy has improved, but there are 0:14:42.720 --> 0:14:46.400 still so many other issues. And to see Biden now 0:14:46.440 --> 0:14:49.880 in the low thirties, you'd have to say, at best 0:14:50.080 --> 0:14:53.200 he's tied with Trump. He may be trailing by three 0:14:53.280 --> 0:14:56.040 or four points. As we get past Super Tuesday. 0:14:56.520 --> 0:14:58.680 How much of an issue at this point is former 0:14:58.720 --> 0:15:02.040 President Trump's legal battles. I mean, coming out of this 0:15:02.200 --> 0:15:04.520 Iowa caucus, He's going to be heading right back into 0:15:04.520 --> 0:15:07.600 a court room later today for the Egene Carrol case. 0:15:07.640 --> 0:15:11.200 That's one of many legal matters that he's dealing with. 0:15:11.640 --> 0:15:15.560 Yeah, I don't get that one. He shows up in court, 0:15:16.320 --> 0:15:20.640 mocks the judge, mocks prosecutors, and thinks that it's going 0:15:20.680 --> 0:15:24.120 to help him politically. I disagree. I don't think he 0:15:24.200 --> 0:15:27.400 has to do that, because he just draws more attention 0:15:27.800 --> 0:15:29.880 to these problems, and. 0:15:29.840 --> 0:15:32.960 He certainly got the attention of Iowa voters last night, 0:15:33.200 --> 0:15:37.880 as you said, walking over coals and over sub zero 0:15:38.080 --> 0:15:40.920 ice to get to the caucuses for him last night. 0:15:40.960 --> 0:15:41.960 Thank you for this. Greg. 0:15:42.160 --> 0:15:44.840 Good having you on with us this morning after the 0:15:44.920 --> 0:15:45.800 Iowa caucuses. 0:15:45.840 --> 0:15:46.800 Greg Valiere with. 0:15:46.840 --> 0:15:51.480 Us this morning, the chief US policy strategist at AGF Investments. 0:15:51.760 --> 0:15:54.880 Now we want to turn from snowy Iowa to snowy 0:15:55.040 --> 0:15:58.440 Switzerland and bring you some of the most important conversations 0:15:58.720 --> 0:16:02.680 from the World Economic Forum annual meeting in Davos. Microsoft 0:16:02.760 --> 0:16:07.359 CEO Satya Nadella says he wants good governance and steadiness 0:16:07.440 --> 0:16:10.600 at open Ai, but he's not worried about the company's 0:16:10.720 --> 0:16:15.680 nonprofit structure and doesn't want greater control over his AI partner. 0:16:15.760 --> 0:16:20.760 Satya Nadella spoke with Bloomberg's Bradstone at Bloomberg House in Davos. 0:16:21.080 --> 0:16:23.800 You guys have been fairly aggressive and out in front 0:16:23.800 --> 0:16:27.480 on adding AI features and capabilities to your products, and 0:16:27.600 --> 0:16:32.160 yesterday you made an announcement where you're expanding the rollout 0:16:32.320 --> 0:16:36.960 of the co pilot tool, fueled partly by your partnership 0:16:36.960 --> 0:16:40.680 with the open Ai, into Microsoft products like Outlook and 0:16:40.760 --> 0:16:43.640 Word and Excel. Talk a little bit about that and 0:16:43.720 --> 0:16:46.880 how widely do you expect those tools to be used. 0:16:47.120 --> 0:16:51.480 Yeah, I mean, if I step back, if you sort 0:16:51.520 --> 0:16:55.080 of look at what has happened even in the last 0:16:55.080 --> 0:16:57.680 so i'd say sixteen months, right, you have to go 0:16:57.840 --> 0:17:01.720 back to November off to two, when chat GPT first 0:17:01.760 --> 0:17:03.360 came out. I think that was the moment, which I 0:17:03.560 --> 0:17:06.880 like to describe as the Mosaic like moment. In fact, 0:17:06.920 --> 0:17:09.880 interesting enough, it is November of ninety three, a year 0:17:09.920 --> 0:17:14.679 after I joined Microsoft in Mosaic first came out, and 0:17:14.720 --> 0:17:17.920 I think that's the first AI product that we all 0:17:18.040 --> 0:17:22.399 could relate to and get a real sense of what 0:17:22.480 --> 0:17:26.439 this generation of AI can do in our lives. But 0:17:26.560 --> 0:17:31.240 for me, maybe the product that really helped crystallize the 0:17:31.280 --> 0:17:34.560 potential was get Up Copilot, which probably came six eight 0:17:34.560 --> 0:17:38.880 months before that, and especially when we know we scaled 0:17:38.880 --> 0:17:43.399 from GPT three to three five, that's around the time 0:17:43.520 --> 0:17:47.000 when we felt that if you can take something like 0:17:47.880 --> 0:17:50.560 software development, which is let's call it, the most elite 0:17:50.640 --> 0:17:54.080 knowledge work there is, and have a tool that allows 0:17:54.359 --> 0:17:57.520 software developer, in fact, bring joy back to software development, 0:17:57.600 --> 0:18:01.200 keep them in flow, get them to finish tasks that 0:18:01.640 --> 0:18:06.440 to be solidified in fact the idea that you can 0:18:06.520 --> 0:18:10.959 have a copilot for pretty much every human task. And 0:18:11.040 --> 0:18:13.960 so we have been on that journey and we are 0:18:13.960 --> 0:18:15.240 anchored on two real things. 0:18:15.280 --> 0:18:15.440 Right. 0:18:15.440 --> 0:18:18.040 The one thing the breakthrough is the user interface. In fact, 0:18:18.080 --> 0:18:20.760 seventy years of computing history has always been about can 0:18:20.800 --> 0:18:23.600 you build that most interuitive user experience. That's kind of 0:18:23.600 --> 0:18:28.119 how it led to graphical interfaces or the multi touch 0:18:28.359 --> 0:18:31.119 phone or what have you. But now with natural language, 0:18:31.160 --> 0:18:33.679 you ultimately in some sense have arrived at that point 0:18:33.800 --> 0:18:37.480 where it's not about us understanding computers, but computers understanding us. 0:18:38.240 --> 0:18:42.399 So that's one major breakthrough. The other breakthrough is we 0:18:42.480 --> 0:18:45.040 now have a new reasoning engine, which is a neural 0:18:45.080 --> 0:18:47.920 reasoning engine, because the other seventy year history of computing 0:18:48.119 --> 0:18:52.359 was we digitize people, places and things and try to 0:18:52.400 --> 0:18:55.040 make sense of it reason about it. And so we 0:18:55.080 --> 0:18:57.240 now have a new capability. So you put these two 0:18:57.240 --> 0:18:59.960 things together, a new user interface that's much more in TUE, 0:19:01.880 --> 0:19:05.600 grounded in natural language, but multi modal, multi turn, multi domain, 0:19:06.240 --> 0:19:09.159 and a reasoning engine. Pretty much every software category, what 0:19:09.240 --> 0:19:12.280 is productivity, what is an operating system, what's the browser? 0:19:13.160 --> 0:19:16.080 They all in some sense collapse. And so that's why 0:19:16.080 --> 0:19:18.760 I do OSK Copilot. Just as maybe in the past 0:19:18.800 --> 0:19:21.960 we were known as an office company, or a Windows 0:19:22.000 --> 0:19:24.960 company or a cloud company, I think going forward we 0:19:25.000 --> 0:19:26.760 will be We have a co pilot. We have a 0:19:26.800 --> 0:19:29.679 co pilot stack in Azure, which is all the APIs 0:19:30.680 --> 0:19:32.840 and that's sort of what our co focus is. 0:19:33.000 --> 0:19:36.000 Right now, tell us let's talk a little bit about 0:19:36.040 --> 0:19:39.760 the relationship with open ai and how we should understand it. 0:19:40.560 --> 0:19:46.000 Copilot is powered by open Ai. We saw some instability 0:19:46.320 --> 0:19:48.879 in the relationship back in November, which. 0:19:50.720 --> 0:19:55.440 You seem to have now come through is Microsoft. 0:19:54.880 --> 0:19:58.760 Outsourcing what you're describing as a core capability going forward? 0:19:58.800 --> 0:20:02.480 And yeah, so I think if you sort of step back, 0:20:03.880 --> 0:20:07.439 in fact, it's probably helpful to understand. I grew up 0:20:07.440 --> 0:20:13.640 in a Microsoft which sort of had these massive partnerships. 0:20:14.320 --> 0:20:18.840 The first partnership that at least I joined was around 0:20:18.920 --> 0:20:22.080 Intel and Microsoft. I don't think Windows would have existed 0:20:22.119 --> 0:20:26.680 without Intel, and Intel wouldn't have had the success without Windows. Subsequently, 0:20:26.720 --> 0:20:29.359 in fact, it's interesting, I worked on our sql server 0:20:29.440 --> 0:20:32.600 product with SAP. In fact, I don't think sql database 0:20:32.600 --> 0:20:37.400 would have existed without SAP. SAP success of being able 0:20:37.440 --> 0:20:40.719 to support sql server also help them a lot, and 0:20:40.760 --> 0:20:42.400 so in the same way, and I think of open 0:20:42.440 --> 0:20:45.720 AI and Microsoft, so I'm used to constructing. In fact, 0:20:45.720 --> 0:20:48.399 a lot of people talk about organic development, which of 0:20:48.440 --> 0:20:50.919 course is the core. People talk about M and A, 0:20:51.240 --> 0:20:53.679 but sort of not as much as talked about how 0:20:53.760 --> 0:20:58.720 much enterprise value gets created by partnering effectively. So that's 0:20:58.760 --> 0:21:02.280 the spirit with which I think about open AI. So 0:21:02.600 --> 0:21:05.360 there's a whole lot we do. So when you say outsourcing, 0:21:05.400 --> 0:21:08.280 who's outsourcing what to whom? Is the real question? 0:21:08.440 --> 0:21:08.640 Right? 0:21:08.680 --> 0:21:12.240 So we build a compute, they then use the compute 0:21:12.280 --> 0:21:14.600 to do the training. We then take that put it 0:21:14.640 --> 0:21:18.000 into products, and so in some sense, it's a partnership 0:21:18.040 --> 0:21:21.159 that is based on each of us really reinforcing what 0:21:21.240 --> 0:21:25.080 everyone each other does, and then ultimately being competitive in 0:21:25.080 --> 0:21:30.320 the marketplace. There's room for I call it horizontal specialization. 0:21:30.680 --> 0:21:34.560 There is room for vertical specialization. Sometimes some business models 0:21:34.600 --> 0:21:35.600 are in vogue. 0:21:36.119 --> 0:21:37.159 I'm a big believer in. 0:21:37.200 --> 0:21:41.600 Horizontal specialization, especially if you can vertically integrate everything. 0:21:43.920 --> 0:21:46.960 This is Bloomberg Daybreak Today, your morning brief on the 0:21:47.000 --> 0:21:50.400 story's making news from Wall Street to Washington and beyond. 0:21:50.680 --> 0:21:53.480 Look for us on your podcast feed at six am 0:21:53.560 --> 0:21:57.239 Eastern each morning, on Apple, Spotify, and anywhere else you 0:21:57.280 --> 0:21:58.440 get your podcasts. 0:21:58.560 --> 0:22:01.240 You can also listen live each morning starting at five 0:22:01.320 --> 0:22:03.879 am Wall Street time on Bloomberg eleven three to zero 0:22:03.960 --> 0:22:07.400 in New York, Bloomberg ninety nine one in Washington, Bloomberg 0:22:07.440 --> 0:22:10.439 one oh sixty one in Boston, and Bloomberg ninety sixty 0:22:10.600 --> 0:22:11.480 in San Francisco. 0:22:11.920 --> 0:22:15.080 Our flagship New York station is also available on your 0:22:15.119 --> 0:22:20.200 Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 0:22:20.240 --> 0:22:24.040 Plus listen coast to coast on the Bloomberg Business app, SERIUSXM, 0:22:24.119 --> 0:22:27.720 the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan 0:22:27.720 --> 0:22:29.320 Hager and I'm Karen Moscow. 0:22:29.520 --> 0:22:32.280 Join us again tomorrow morning for all the news you 0:22:32.400 --> 0:22:35.639 need to start your day right here on Bloomberg Daybreak