How China AI DeepSeek Upended US Tech as Trump, Nvidia, OpenAI Respond | Bloomberg The Pulse

How China AI DeepSeek Upended US Tech as Trump, Nvidia, OpenAI Respond | Bloomberg The Pulse

Show Video

FOR THE CONVERSATIONS THAT MATTER AND THE INSIGHT YOU NEED, LET'S GET STARTED. >> NEWSMAKERS AND MARKET MOVERS, THIS IS "THE PULSE." FRANCINE: GOOD MORNING. PRESIDENT DONALD TRUMP HAS WEIGHED IN ON DEEPSEEK BREAKTHROUGH ON THE RETREAT. PRES. TRUMP: THE RELEASE OF DEEPSEEK AI FROM A CHINESE COMPANY SHOULD BE A WAKE-UP CALL FOR OUR OUR INDUSTRIES THAT WE NEED TO BE LEADERS -- LASER FOCUS ON COMPETING TO WIN. FRANCINE: LET'S BRING IN ROS MATHIESON.

WE WILL GET TO SOME OF THE DEEPSEEK NEWS IN A SECOND. DONALD TRUMP WAS QUITE CLEAR ON WANTING TO INTRODUCE TARIFFS ON CERTAIN INDUSTRIES. I'M NOT SURE WHO THEY ARE LIVING TO OR IF YOU WILL COME THROUGH WITH IT. >> THIS IS THIS NOISE AROUND WILL HE INTRODUCE TARIFFS, WHEN WILL HE INTRODUCE TARIFFS, HOW MUCH WILL THEY BE AND HOW QUICKLY WILL THEY MOVE? WE REPORTED EARLY THIS MONTH THERE WERE A NUMBER AND DONALD TRUMP INNER CIRCLE INCLUDING SCOTT BESSENT, INCOMING TREASURY SECRETARY, ADVOCATING FOR GRADUAL APPROACH LIKE MAYBE STARTING WITH A NUMBER BETWEEN 2% AND 5% AND GOING UP ON A MONTHLY BASIS. YOU WANT TO SEE WHETHER COUNTRIES RESPOND TO THAT INITIAL TARIFF, LIKE IT TARIFF, AND HOW CAN THEY NEGOTIATE FROM THERE. FURTHER SIGNS OVERNIGHT THAT MIGHT BE WHAT SCOTT BESSENT ONE. CLEARLY, THE MESSAGE FROM TOTAL

MESSAGE COME ON THE BACK OF THAT, I'M LOOKING AT SOME PRETTY SERIOUS TARIFFS AND HE WANTS TO KEEP THAT OPTION OPEN. EVEN IF THEY END UP WITH GRADUAL TARIFFS OR NONE AT ALL, HE WANTS THAT AS A TOOL OF LEVERAGE. HE ONCE HAD HANGING OVER PEOPLE. THAT IS WHAT THE MARKET IS KIND

OF WHIP SIGN AROUND. IT IS CLEAR HE WANTS THAT IN THE TOOLBOX. WE SAW FROM THE EXAMPLE ON THE WEEKEND OF COLUMBIA HE IS VERY WILLING TO USE IT IF NEED BE.

FRANCINE: I KNOW IT IS DIFFICULT TO FIND HOW FAR HE IS READY TO GO, BUT PHARMACEUTICAL COMPANIES. HE WANTS TO COMPEL THEM TO BRING MANUFACTURING IN THE U.S. IF A COMPANY SAYS I AM GOING TO ADD 5000 JOBS TO THE U.S., IS

THAT ENOUGH? DO WE KNOW WHAT THE THRESHOLD IS? >> YOU WANT TO SHOW YOU ARE DOING SOMETHING BE IT BUILDING FACTORS, BRINGING JOBS BACK. IF YOU CAN MAKE THAT NUMBER AS BIG AS POSSIBLE AND SOUND REALLY GOOD, THE BETTER. WE SAW SAUDI ARABIA RECENTLY PLEDGING TO SPEND A LOT OF MONEY IN U.S. HOW MUCH OF THAT IS REAL OR

FEASIBLE? PERHAPS IT DOESN'T MATTER BECAUSE IT IS A BIG ROUND NUMBER WITH A LOT OF ZEROS AND THAT IS WHAT COUNTS IN THE END. IF YOU ARE A COMPANY, YOU WANT TO EITHER TALK UP YOUR EXISTING MANUFACTURING, SHOW WHAT YOU ARE ALREADY DOING AND ADD ONTO THAT -- YOU CAN PROMISE FACTORIES THAT COULD BE BUILT IN THE NEXT FIVE TO 10 YEARS, DON'T HAVE TO EVENTUATE IF YOU'RE REALLY WANTING TO TRY TO MANAGE DONALD TRUMP ON IT WAS TOUGH BUT IT IS ABOUT SHOWING HIM YOU ARE LISTENING TO HIM IS KEY. FRANCINE: I KEEP HEARING THE LAST 10 DAYS IN TERMS OF EXECUTIVE ORDERS AND POLICIES, WILL THIS ADMINISTRATION HAVE TO SLOW DOWN? DOES HE HAVE THE TEAM IN PLACE -- HOW DO YOU SEE IT GOING IN THE NEXT TWO MONTHS? >> HE WANTED TO DEMONSTRATE A LOT OUT OF THE GATE AND HE WAS DOING THAT EVEN WITH SOME OF THE THINGS HE WAS ANNOUNCING AND SAYING OVERNIGHT. HE IS TRYING TO MOVE WHAT HE

SEES AS DEMOCRATIC OFFICIALS OUT OF THE MACHINERY OF GOVERNMENT COME OUT OF THE BUREAUCRACY, AND OUT OF DIFFERENT MINISTRIES. HE HAS WORKED TO GO. HE WANTS TO DEMONSTRATE ON THE IMMIGRATION SIDE, SO HE IS PUSHING ON MIGRATION. HE IS TRYING TO DO A LOT IN QUICK SUCCESSION. AT SOME POINT, YOU NEED TO SAY DO THESE THINGS HAVE AN EFFECT? THEN GO ON. OBVIOUSLY, HE IS TRYING TO DEMONSTRATE HE IS AS GOOD AS HIS WORD ON A BUNCH OF THINGS. FRANCINE: ROS MATHIESON, THANK YOU. WE HAD A CONVERSATION WITH THE

PRIME MINISTER OF U.K. ON TARIFFS, TRADE, AND HOW DEALING WITH TRUMP, WHAT THAT WILL LOOK LIKE IN THE NEXT FIVE TO SIX MONTHS AND WE WILL BRING THAT TO YOU SHORTLY. NVIDIA HAS CALLED DEEPSEEK AN EXCELLENT AI ADVANCEMENT. SAID ALTMAN HAS PRICED THE MODEL AND PRESIDENT TRUMP SAYS IT IS A WAKE-UP CALL FOR THE U.S. THE CHINESE STARTED HAS A BEEN A GLOBAL MARKETS WITH NVIDIA'S DROP, THE LARGEST ONE-DAY DROP -- LOSS IN HISTORY. REEVALUATION OF THE ECONOMICS OF THE AI INVESTMENT BOOM.

LET'S GET MORE WITH ROBERT. THERE IS SO MUCH COPY AND THEY DO HAVE SOME OF THE NVIDIA CHIPS THEY'RE NOT SUPPOSED TO HAVE OR MAYBE THEY DO OR DON'T. IS THIS JUST A TURNING POINT FOR THE AI SECTOR? WHAT DO WE ACTUALLY KNOW? >> GOOD QUESTION. WE DON'T REALLY KNOW HOW MUCH

INVENTORY THEY HAVE GOT ACCESS TO. WE DON'T REALLY KNOW IF THESE CLAIMS ON COST OUTCOME APPROXIMATE $6 MILLION ARE CORRECT. ON ONE HAND, IT SEEMS ALMOST TOO GOOD TO BE TRUE. WHAT WE DO KNOW IS THE PERFORMANCE AND THEIR MODELS IS AMONGST THE BEST IN THE INDUSTRY ON SOME EXTERNAL BENCHMARKING SERVICES. BENCHMARKING WEBSITES, DEEPSEEK'S MODELS ARE RIGHT NUMBER TWO GLOBALLY.

THE EVIDENCE IS THERE THEY HAVE A HIGHLY EFFECTIVE AND EFFICIENT MODEL. I DO THINK THERE IS TRUTH IN THE COST DOWN CLAIMS. ADD THEY HAVE BEEN EXTREMELY AGGRESSIVE ON THE PRICING THEY ARE CHARGING THEIR CUSTOMERS. I THINK ULTIMATELY THEIR STORY DOES HOLD TOGETHER, SOME OF THE DETAILS PERHAPS NOT SO. COMING TO YOUR QUESTION AS HER

TURNING POINT IN THE INDUSTRY, WHO AM I TO ARGUE WITH PRESIDENT TRUMP? I THINK IT IS A WAKE-UP CALL. WHILE PEOPLE IN ASIA HAVE BEEN FAMILIAR WITH DEEPSEEK FOR SOME TIME, CLEARLY, THAT IS NOT THE CASE IN TERMS OF FINANCIAL MARKETS GIVEN THE REACTION WE HAVE SEEN. NO ROOM FOR COMPLACENCY SO THIS IS A WAKE-UP FOR THE BIG TECH PLATFORMS AND WE WILL HAVE TO SEE HOW THEY EVOLVED THEIR MODEL AND BUSINESS PLANS ON THAT FRONT, MAYBE THEY MOVE TO SMALLER, LOWER COST MODELS GOING FORWARD.

I THINK THAT IS PROBABLY THE DIRECTION OF TRAVEL FOR THE INDUSTRY FROM HERE. FRANCINE: IS THIS THE BIGGEST CHALLENGE IT HAS FACED? ARE THERE ANY SECURITY, NATIONAL SECURITY CONCERNS? THERE IS A CLAUSE INCITING THE CHINESE GOVERNMENT HAS ACCESS TO THE MODELING -- IN SAYING THE CHINESE GOVERNMENT HAS ACCESS TO THE MODELING THAT CHINESE AI USES. >> THERE IS NATIONAL SECURITY CONCERNS ON BOTH SIDES.

YOU WOULD BE CONCERNED IF A POTENTIAL RIVAL HAS ACCESS TO SENSITIVE CONSUMER DATA. I THINK THE BIG QUESTION MARK AND CHALLENGE FOR THE INDUSTRY REMAINS THE SAME, MONETIZATION. LOOKING AT THE U.S. TYPE PLATFORMS. THEY ARE

SPENDING TENS OF BILLIONS ON CAP EXPERT QUARTER. I THINK THE FEAR OF MISSING OUT IS DRIVING A LOT OF THE DECISION-MAKING. WE SAW WHAT META HAD TO SAY LESS RATE. WHILE COMPANIES ARE BEGINNING TO MONETIZE, THEY ARE NOT MONETIZING ANYWHERE FAST ENOUGH.

IF YOU DID A STRAW POLL OF PEOPLE IN YOUR STUDIO KNOW OR EVEN AMONGST VIEWERS WATCHING THIS, I WONDER HOW MANY PEOPLE ARE PUTTING THEIR HEADS IN THEIR POCKETS AND SUBSCRIBING TO THESE AI SERVICES AT THE MOMENT? I'M SURE WE HAVE ALL PLAYED AROUND WITH THEM AND HAD SOME AMUSEMENT, I'M NOT SAYING THEY DON'T HAVE A REAL USE, BUT THE MAJORITY OF CONSUMERS AT THE MOMENT DON'T SEE THEIR CIVILIAN -- SUFFICIENT VALUE ADD FOR THESE PRODUCTS AND THAT IS THE BARRIER TO MONETIZATION, PARTICULARLY WHEN YOU ARE BIG PLATFORM SHELLING OUT TENS OF BILLIONS PER QUARTER. THERE IS THE POTENTIAL -- DAY OF RECKONING COMING . I THINK A LARGE TECH PLATFORMS SHOULD REMAIN OK BECAUSE THEY BENEFIT FROM VERY STRONG CASH FLOW AND ARE STANDING ON A STRONG BALANCE SHEET. EQUALLY, THAT PROLONGS THIS CYCLE. THERE IS A LOT TO SAY ON THIS BUT HOPEFULLY THAT ANSWERS SOME OF YOUR QUESTION. FRANCINE: THANK YOU SO MUCH. IT WAS INTERESTING. IN DAVOS, OR PERSONAL REASONS,.

ROB LEA ANSWERING SOME VERY IMPORTANT QUESTIONS AS WE ARE TRYING TO FIGURE OUT WHAT HAPPENED OVER THE LAST THREE TO FOUR DAYS IN THE MARKETS. WE WILL CONTINUE DISCUSSING THE MARKET FALLOUT FROM DEEPSEEK'S EMERGENCE AND MUCH MORE WITH THUSHKA MAHARAJ FROM J.P. MORGAN ASSET MANAGEMENT. A LITTLE LATER IN THE SHOW, OUR INTERVIEW WITH U.K. PRIME MINISTER KEIR STARMER AS HE LOBBIES A CHIEF EXECUTIVE AT SOME OF BRITAIN'S LARGEST COMPANIES. THIS IS "BLOOMBERG." ♪ FRANCINE: THE DOLLAR STRENGTHENED AFTER U.S. PRESIDENT DONALD TRUMP SAID HE

WANTED BIGGER UNIVERSAL TARIFFS. LET'S GET MORE ON THE LATEST MARKET MOVES WITH THUSHKA MAHARAJ FROM J.P. MORGAN ASSET MANAGEMENT. THANK YOU FOR JOINING US. THERE'S A LOT OF MARKET TURMOIL. THIS IS GOING TO BE VOLATILITY

FOR 2025? >> THANK YOU FOR HAVING ME ON. YES, WE AGREED THERE IS VOLATILITY IN THESE MARKET AND ESPECIALLY WITH THE NEW ADMINISTRATION IN THE U.S. WE HAVE SEEN IN THE LAST FEW DAYS QUITE A LOT OF NEWS FLOW ON TARIFFS AND WE THINK THAT WILL KEEP UNCERTAINTY HIGH. BUT IT IS NOT A REASON TO

PREVENT IS TAKING RISK. I THINK YESTERDAY WAS A GOOD EXAMPLE OF THE MARKET HAVING HAD A SHOP IN TERMS OF TECH FOR THE TECH SECTOR AND INNOVATION, WHICH IS A WELCOME INNOVATION. 70% OF THE S&P STILL ENDED UP IN POSITIVE TERRITORY. I WOULD SAY THE THEME OF RUNNING OUT OF GROWTH, BROADENING OUT OF EARNINGS IS SOMETHING WE ARE WATCHING THIS WEEK AND INTO EARNINGS SEASON, BUT I WOULD SAY THAT WAS REINFORCED EVEN IN THE VOLATILITY. FRANCINE: THUSHKA, WE HAVE BEEN TALKING ABOUT THE MAGNIFICENT SEVEN BEING PRICE TO PERFECTION. IS CASE IN POINT?

>> I DO AGREE WITH THE POINT VALUATIONS AND THAT CONCENTRATION OF THE S&P HAS BEEN A FOCAL POINT. I DO SEE YESTERDAY, EVEN THOUGH WE DON'T HAVE FULL INFORMATION, I WOULD SAY YESTERDAY WAS AN EXAMPLE OF THE MARKET USING A CATALYST AND THEN HIGH VALUATIONS AS AN ACCELERATED FOR WHAT HAPPENED AND POSITIONING, AS YOU SAY, WAS QUITE LONG IN THE TECH SECTOR. I WOULD NOT NECESSARILY SAY THIS IS A START OF A MORE PROLONGED SELLOFF.

WE NEED MORE INFORMATION TO FORM A BIGGER VIEW. WHAT I WOULD SAY IS DISRUPTION AND INNOVATION IN THIS SECTOR IS SOMETHING WE SHOULD BE MORE COMFORTABLE WITH. TO YOUR POINT ABOUT HIGHER VOLATILITY AND RISK PREMIER IN EQUITY MARKETS, I THINK THAT IS SOMETHING WE ARE GOING TO HAVE TO DEAL WITH. ULTIMATELY, WHEN WE THINK ABOUT THIS FROM A BIG PICTURE PERSPECTIVE, WE SEE THIS INNOVATION IS HELPING BRING DOWN THE COST OF TRAINING, THE COST OF USAGE. THIS WILL HELP BROADEN THE AVAILABILITY OF AI TO OTHER USERS HAVE THE TECHNOLOGY.

SO WHEN YOU THINK ABOUT THAT, MORE USAGE, MORE DEMAND FOR AI, MIGHT SUPPORT THE TECH SECTOR MORE GIVEN THIS INNOVATION. FRANCINE: WHAT ARE YOU EXPECTING FOR EARNINGS SEASON? I GUESS MORE ANXIOUSNESS AS WE LOOK TOWARD POSSIBLY U.S. POLICIES OR DO YOU EXPECT HAVE A ROBUST ORDER? >> THIS WEEK WHERE WE HAVE OVER 30% OF THE S&P REPORTING, I THINK IT IS GOING TO BE QUITE INFORMATIVE. IT HAS TAKEN ON A NEW CONNOTATION IN THE LAST 24 HOURS, ESPECIALLY BY THE BIG SECTOR. I WOULD SAY WE HAVE CONFIDENCE IN STRONG EARNINGS DELIVERY ACROSS THE BOARD. BUT WHAT WE ARE WATCHING MOST CLOSELY IS THERE BROADENING OUT THEME.

LAST YEAR, THE IDEA THE MAG SEVEN DELIVERED 40% OF EARNINGS, THIS YEAR IT IS LIKELY TO COME DOWN TO HALF OF THAT. WHEREAS THE REST OF THE S&P, WE ARE LIKELY TO SEE MORE THAN TRIPLE FOLD INCREASE IN THE EARNINGS EXPECTATIONS GOING FROM 3% LAST YEAR EXPECTATIONS CLOSER TO 13% THIS YEAR. I WAS AT THE SECOND COMPONENT WE ARE WATCHING CLOSELY BOTH IN TERMS OF MARGIN CREDIT BUT ALSO THE BROADENING OUT OF EARNINGS. AND CONFIRMATION THAT THE REST OF THE S&P CAN OUTPERFORM CONSENSUS EXPECTATIONS I THINK WOULD BE A VERY STRONG POSITIVE FOR EQUITY MARKETS AT THIS POINT. AS YOU SAY, WE ARE WATCHING WHAT HAPPENS WITH THE RESPONSE OF THE LARGE TECH STOCKS, TO COME INTO THE NEWS FLOW IN THE LAST 24 HOURS. AND THEIR INTENTIONS ON CAPEX I THINK WILL BE A HYPERFOCUS FOR THE MARKET IN THIS WEEK'S DATA. FRANCINE:

WHEN YOU LOOK AT YOUR AREA GROWTH, AS A SLOWLY BOTTOMING OUT? THERE IS BEEN SO MUCH DISCOURAGING NEWS FROM EUROPE. AT WHAT POINT DOES IT BOUNCE BACK AND WHAT DOES THAT MEAN FOR EQUITIES? >> WE HAVE BEEN WATCHING THIS QUITE CLOSELY. I WOULD SAY IT STARTED IN THE EARLY PART OF DECEMBER WHERE THE PMI IN THE EURO AREA STARTING TO SHOW SIGNS OF IMPROVEMENT.

WE CAN'T LOSE SIGHT OF THE FACT THEY ARE IMPROVING FROM A VERY LOW BASE. YES, WE HAVE USED EUROPE IN THE PAST AS A FUNDING MARKETS BUT WE ARE QUITE CONSCIOUS THAT IS CONSENSUS, THAT THE MARKETS PRICING IN THAT NEGATIVITY. I WOULD SAY IN THE FIRST FEW TRADING SESSIONS OF THIS YEAR, WE HAVE SEEN STRONG PERFORMANCE OF THE EUROPEAN EQUITY MARKET.

PART OF THAT, A REFLECTION OF THE VALUATIONS RELATIVE TO THE U.S. BUT PART OF THAT BOTTOMING OUT OF THE PMI IN THE RECENT DATA HAVE BEEN MORE ENCOURAGING. WHAT WE ARE WATCHING TO BUILD MOMENTUM IN THIS VIEW IS MORE THE OUTLOOK ON THE POLITICAL FRONT.

YOU MENTIONED TARIFFS BEING AN UNCERTAINTY. I THINK THAT WILL HANG OVER CONFIDENCE AND BUSINESS SENTIMENT EVEN IN THE EURO AREA. MORE IMPORTANTLY, WE ARE WATCHING THE GERMAN ELECTIONS.

WHERE THE LIKELIHOOD OF SEEING MORE FISCAL SPENDING, MORE DOMESTIC FISCAL SPENDING THAT IS TARGETED EITHER INVESTMENT AND INFRASTRUCTURE OR HELPING WITH WELFARE COSTS AS WELL. I WOULD NOT CALL THAT NECESSARILY A GAME CHANGER, BUT COULD THAT BE ANOTHER CATALYST FOR MORE OPTIMISM IN THE EURO AREA? I WOULD SAY, YES. FRANCINE: WHAT WOULD BE A GAME CHANGER? THERE HAS BEEN A COUPLE OF SOUNDS MAY BE ON A TV INTERVIEW THAT COULD QUICKLY BE REVERSED ON THE VIEW ON CHINA IN THE TRUMP POLICIES. >> WHAT COULD BE A GAME CHANGER? I THINK ONE OF THOSE AVENUES COULD BE THE SOFTENING OF TARIFFS, THE USAGE OF IT MORE AS A NEGOTIATING TACTIC RATHER THAN SOMETHING MORE PUNITIVE. BUT I WOULD SAY FOR THE EURO AREA WHAT IS MORE GAME CHANGING WOULD BE THE IDEA OF A RELAXATION OF THE DEBT BREAK IN GERMANY, OR YOU CAN SEE WERE SPENDING EITHER THROUGH THE CONSERVATIVE OR THE SOCIAL DEMOCRATS COALITION CREATING WERE SPENDING IN GERMANY. WHAT COULD BE A BROADER GAME CHANGER FOR RISK MARKETS, IT WOULD BE A CHINESE POLICY RESPONSE THAT IS LARGER THAN CONSENSUS TODAY ALONGSIDE A SOFTENING FROM THE TRUMP ADMINISTRATION.

I WOULD SAY BROADLY SPEAKING, THE NEWS FLOW THE LAST 24 HOURS HAS GIVEN US MORE CONFIDENT IN THIS IDEA THAT INNOVATION AND DISRUPTION IN THE TECH SECTOR WILL ULTIMATELY LEAD TO A LOWER COST BASE, WHICH WILL BRING IN MORE USERS AT THAT TECHNOLOGY. IRONICALLY, WE SEE THAT AS QUITE SUPPORTIVE FOR GROWTH OVER THE MEDIUM TERM POST AND NOT JUST IN THE U.S. I THINK THAT IS A CRUCIAL DIFFERENCE. FRANCINE: THUSHKA, THANK YOU FOR JOINING US, THUSHKA MAHARAJ JP MORGAN ASSET MANAGEMENT. COMING UP, WE HEAR FROM BLACK

SWAN AUTHOR ON A RECENT ROUTE IN U.S. TECH STOCKS FOLLOWING THE EMERGENCE OF DEEPSEEK. >> THE NUMBER ONE PARITY OF THIS LABOR GOVERNMENT'S GROWTH. GROWTH, GROWTH, GROWTH. BY THAT I MEAN WEALTH CREATION. THAT IS WHY WHAT YOU'VE SEEN IN RECENT DAYS IS ANNOUNCEMENTS ABOUT HOW WE ARE GOING TO STRIP AWAY REGULATION, USE AI TO TAKE US FORWARD. TODAY WE'VE HAD THE OPPORTUNITY ACROSS A NUMBER OF SECTORS YOU HAVE A REALLY GOOD DISCUSSION ABOUT HOW MUCH FURTHER WE CAN GO. THE NUMBER ONE MISSION IS

WEALTH CREATION. WE HAVE TO GET OUR ECONOMY WORKING. I THINK WE ARE BEGINNING TO SEE HOW THAT IS TURNING AROUND. WE WILL BUILD ON THAT AS WE GO FORWARD. FRANCINE: OUR INTERVIEW WITH KEIR STARMER AS HE LOBBIES CHIEF EXECUTIVES AT SOME OF BRITAIN'S LARGEST COMPANIES HERE AT BLOOMBERG'S HQ IN LONDON.

THIS IS "BLOOMBERG." >> IT SHOWS A FRAGILITY OF THE WEST FORMATION BASED ON VERY SMALL NUMBER OF STOCKS -- 3 TRILLION CAPITALIZATION? A LOT OF IT IS RECENT, OK? SO IT SHOWS AS HOW MUCH THE WHOLE ECONOMIC STRUCTURE IS FINANCIAL. FRANCINE: THAT WAS NASSIM TALEB , AUTHOR OF "BLACK SWAN" TALKING WITH A STEEP SELLOFF OF NVIDIA THE MARKETS FRAGILITY. PRESIDENT DONALD TRUMP SAYS MICROSOFT IS IN TALKS TO BUY THE U.S. ARM OF TO TALK. OTHER BIDDERS INCLUDE PERPLEXITY AND BILLIONAIRE FRANK MCCOURT. MICROSOFT AND ORACLE WERE IN THE RUNNING TO BUY IN 2020. COMING UP, OUR INTERVIEW WITH

U.K. PRIME MINISTER KEIR STARMER AS HE LOBBIES CHIEF EXECUTIVES AS A MEMBER'S LARGEST COMPANIES HERE AT EUROPEAN HEADQUARTERS IN LONDON. THIS IS "BLOOMBERG." ♪ FRANCINE: GOOD MORNING AND WELCOME TO "THE PULSE." THESE ARE YOUR TOP STORIES. KEIR STARMER TELLS BLOOMBERG THE U.K.

ECONOMY IS STARTING TO TURN AROUND AND HE WILL MEET PRESIDENT TRUMP SOON. OUR INTERVIEW, COMING UP MOST OF NVIDIA CLAUSE BACK SOME GROUND AFTER ITS $589 BILLION ROUTE, THE LARGEST IN STOCK MARKET HISTORY. DEEPSEEK'S COMPETITORS RESPOND MOST OF NVIDIA CALLS THE NEW MODEL EXCELLENT WHILE SOME -- SAM ALTMAN PROMISES MORE FROM OPENAI. U.K. PLANS TO UNLOCK BILLIONS OF

POUNDS TO HELP DRIVE ECONOMIC GROWTH BY ALLOWING COMPANIES TO INVEST SURPLUSES FROM PENSION FUNDS. IT COMES WITH THE LABOR GOVERNMENT UNDER PRESSURE AFTER TAX RAISING BUDGET LAST YEAR. SPEAKING THIS MORNING WITH US HERE AT EUROPEAN HEADQUARTERS IN LONDON, THE PRIME MINISTER KEIR STARMER, LOVING CHIEF EXECUTIVE'S AS SOME OF BRITAIN'S BIGGEST COMPANIES FOR SUPPORT. THE PRIME MINISTER SPOKE TO US AFTER THE MEETING SAYING THE U.K.

ECONOMY IS BEGINNING TO TURN AROUND. >> THE NUMBER ONE PRIORITY AT THIS LABOUR GOVERNMENT IS GROWTH . GROWTH, GROWTH, GROWTH. BY THAT I MEAN WEALTH CREATION. THAT IS WHY WHAT YOU HAVE SEEN IN RECENT DAYS IS A NUMBER OF ANNOUNCEMENTS ABOUT HOW WE ARE GOING TO STRIP ARRAY REGULATION, STRIP AWAY THE PLANNING, USE AI TO TAKE US FORWARD. TODAY WE HAD THE OPPORTUNITY ACROSS A NUMBER OF SECTORS TO HAVE A REALLY GOOD DISCUSSION ABOUT HOW MUCH FURTHER WE CAN GO. BUT THE NUMBER ONE MISSION IS WEALTH CREATION. WE HAVE TO GET OUR ECONOMY WORKING.

I THINK WE ARE BEGINNING TO SEE HOW THAT IS TURNING AROUND. WE WILL BUILD ON THAT AS WE GO FORWARD. FRANCINE: HOW YOU LOOK AT TARIFFS? YOU HAD A PRODUCTIVE CALL WITH PRESIDENT TRUMP. HE IS GOING AFTER THE EU IN TERMS OF TARIFFS. DO YOU WORRY HE WILL GO AFTER THE U.K. NEXT? >> I HAD CONSTRUCTIVE CALL WITH PRESIDENT TRUMP OVER THE WEEKEND, VERY POSITIVE. THERE IS A LONG HISTORY BETWEEN

OUR TWO COUNTRIES. IT IS A SPECIAL RELATIONSHIP. WE THOUGHT TOGETHER IN WARS, WORK SO HARD ON SECURITY AND INTELLIGENCE TOGETHER. THERE'S A HUGE AMOUNT OF TRADE BETWEEN OUR TWO COUNTRIES. I THINK THAT IS TO OUR ADVANTAGE. SOMETHING WE CAN BUILD ON. I WAS VERY PLEASED WITH THE CONVERSATION WE HAD WITH PRESIDENT TRUMP. FRANCINE: DO YOU THINK TARIFFS CAN BE KEPT AT BAY? >> WE WILL LOOK AT CONSTRUCTIVE WILL WORK CONSTRUCTIVELY WITH THE U.S. WE HAVE A HUGE AMOUNT OF TRADE

BETWEEN OUR TWO COUNTRIES. TWE NEED TO BUILD ON THAT. THAT IS THE MINDSET THAT I BRING TO DISPOSE OF THE MINDSET PRESIDENT TRUMP OR THAT.

FRANCINE: ON GREENLAND, DOES IT NEED TO STAY PART OF -- >> I AM NOT GOING TO COMMENT ON THINGS THAT ARE NOT CENTRAL TO WHAT I HAVE TO DO IT IN RELATION TO THE U.K. AND U.S. RELATIONSHIP. RELATIONSHIP HAS BEEN THERE FOR A VERY LONG TIME.

THERE IS A SHARED INTENT BETWEEN MYSELF AND THE PRESIDENT TO BUILD ON THAT. FRANCINE: U.K. PRIME MINISTER KEIR STARMER SPEAKING IN LONDON A SHORT TIME AGO. LET'S RING IN OUR SENIOR ECONOMICS REPORTER. THERE IS MARKET TURMOIL, A LOT OF QUESTION MARKS ABOUT HOW PHUKET WAS GOING TO ACHIEVE GROWTH, WHETHER THE BUDGET WAS A MISTAKE. ARE THEY TRYING TO RECALIBRATE AND GET BACK A MESSAGE WITH BUSINESS? >> THEY'VE ALWAYS HAD GROWTH WAS THE PRIORITY. 2.5% TARGET BY THE END OF THE PARLIAMENT.

THEY WANT TO BE THE FASTEST GROWING MAJOR ECONOMY IN THE WORLD, EVEN FASTER THAN THE U.S. THE BUDGET WOULD SEEM TO BE ABOUT RAISING THE TAXES, PHYSICS SAYING THE FISCAL -- FIXING THE FISCAL. WHAT IS THE AGENDA FOR GROWTH? THAT WAS THE PIECE MISSING.

IT WAS A BUDGET NOT FOR GROWTH, BASICALLY, FOR BIG TAXES. RACHEL REEVES HAS A BIG SPEECH TOMORROW AND WEDNESDAY AND THEY HAVE UNVEILED THESE EFFECTUALLY SAID WE WANT DEREGULATION, BULLDOZE THROUGH THE PLANNING RULES AND THEY ARE TRY TO RELEASE MONEY THROUGH THE PENSIONS SYSTEM TO GET INVESTMENT INTO THE U.K. WILL SERVE AS STORM SAYS, GROWTH TO HIM MEANS INVESTMENT. FRANCINE: EVERYTHING IS GROWTH. LET'S START THERE. PHIL WROTE THIS GREAT STORY ON PENSION REINVESTED.

WE ARE TALKING ABOUT THIRD RUNWAY AT HEATHROW AND EXPANSION AND OTHER INFRASTRUCTURE PROJECTS. I DON'T KNOW WHERE WE ARE -- IS THIS ENOUGH TO GET THE KIND OF GROWTH THE U.K. NEEDS, ESPECIALLY IF YOU'RE COMPETING WITH U.S.? >> IT IS A GOOD IDEA TO GO FOR GROWTH WILL STOP WE HAVE BEEN HELPED BY -- HEATHROW, DECADES, IT HAS BEEN SIGNED OFF A NUMBER OF TIMES IN THE PAST. THE THING THAT WILL TEST AS IF THEY GET A

PASSED THE CABINET. I DO FEEL ONE ISSUE IS THE BUDGET CAME OUT AND BEFORE HAND, TALKED ABOUT GROWTH BUT OBVIOUSLY WHAT HAPPENED WAS SLAPPED THE PRIVATE SECTOR IN THE FACE WITH TAX UNEMPLOYMENT AND THAT IS NOT SOMETHING YOU DO IF YOU ARE GROWTH. YOU DON'T MAKE IT HARDER TO EMPLOY PEOPLE. WE HAVE SEEN THE EFFECT OF THAT FEEDTHROUGH. IN THE DATA. I FEEL WHAT HAS HAPPENED PARTLY IS RACHEL REEVES IN PARTICULAR HAS SEEN HOW VULNERABLE THE U.K. IS, THE BOND MARKET WAS NOT HER FAULT BUT NOT HAVING ENOUGH SPACE WAS HER FAULT SO SHE LEFT US BETWEEN A ROCK AND A HARD PLACE.

THEY CAN'T DO FURTHER TAX RACES BECAUSE THEY HAVE SEE WHAT HAPPENS WHEN YOU DO THAT. THEY ALSO STRUGGLED TO PUSH THROUGH PUBLIC SECTOR CUTS. VERY DIFFICULT FOR THIS GOVERNMENT TO LEAVE ITSELF OPENED ACCUSATIONS OF AUSTERITY AFTER SPENT THE LAST 14 YEARS COMPARING -- COMPLAINING ABOUT AUSTERITY. THIS IS THE ONLY WAY OUT THAT

THEY SEE. TO BE FAIR, THAT IS A GOOD THING. WE DO NEED GROWTH. WE DESPERATELY NEED GROWTH. FRANCINE: THERE WERE QUESTIONS ABOUT WHETHER THE CHANCELLOR COULD STAY IN HER JOB AFTER THE MARKET TURMOIL. IS THIS GOING TO BE A NEW LABOUR POLICY? SO IF THEY DON'T HAVE THE GROWTH, WILL THEY HAVE TO GO BACK FOR THE SPRING STATEMENT AND CHANGE SOME OF THE THINGS I ANNOUNCED IN AUTUMN? >> THE GROWTH IS GOING TO COME IN TIME. THE LAST COUNT, THE ECONOMY IS SMALLER THAN ONE LABOUR CAME TO POWER. IN THE SENTIMENT INDICATORS REMAIN MISERABLE, BASICALLY, AMONG CONSUMERS AND BUSINESSES.

THEY BASICALLY HAVE TO SHIFT THE DIAL. IF YOU GET CONFIDENCE, A BIG MORALE BOOSTER,, THEN THAT HELPS. TELLING BUSINESSES THERE IS GOING TO BE OF DEREGULATION AND THERE HAVE BEEN SPECIFIC POLICIES ANNOUNCED ON PLANNING TO MAKE IT EASIER TO GET BUILDING ON DEVELOPMENTS OFF THE GROUND.

THEY ARE ANNOUNCING PROJECTS WHICH HOPE WHICH IS SITTING ON DESKS THAT HAS A MAN GIVEN THE GREEN LIGHT. ANGELA RAYNER IS ONE OF THE MORE ACTIVE MEMBERS OF THE CABINET GETTING STUFF THROUGH IN THE HOUSING BUILDING DEPARTMENT. YEAH, IT REALLY COME ON THE ACTUAL DAY MARCH 26 WHEN THEY COME OUT WITH A NEW FORECAST, IT IS ENTIRELY PLAUSIBLE RACHEL REEVES HAS GOT LESS THAN ZERO HEADROOM AND SHE HAS DEFINED EXTRA POLICIES. THAT IS GOING TO BE A DIFFICULT ONE FOR HER AS JOHN WAS SAYING. IT LOOKS LIKE WELFARE MAY BE SOMETHING THEY TRIED TO GO AFTER AS PRIORITY. FRANCINE: JOHN, ARE THEY SO VULNERABLE TO MARKET TURMOIL? THIS ORIGINATED IN THE U.S. DEPENDENT ON THE KINDNESS OF

STRANGERS. >> YES, THE OLD CATCHPHRASE. PEOPLE HAVE BEEN -- THE HOUSING MARKET IS A BIG DRIVER OF THE BUT CONSUMERS FEEL IN THE U.K.

IF YOU GET INTEREST RATES HEADING HIGHER, AGAIN, IT PUTS THE CHANCELLOR ON THE SPOT. I DO THINK ONE PROBLEM IS THIS INSISTENCE ON FOLLOWING EXACTLY WHAT THE RPI DOES. THE LAND TRUST EPISODES. I THINK THE CHANCELLOR SHOULD

FEEL A BIT MORE FREE TO SAY WE ARE GOING TO PURSUE THIS. WE ARE GOING TO GIVE IT ROOM TO BREATHE. BUT THAT IS POLITICALLY DIFFICULT BECAUSE OF THE CORNER THEY HAVE BACKED THEMSELVES INTO. FRANCINE: HOW DO YOU THINK THIS GOVERNMENT MEASURE SUCCESS? HOW DO THEY THINK WE HAVE DONE A GOOD JOB HERE? >> I THINK THEIR GUIDING PRINCIPLE HAS BEEN TO FIX THE PUBLIC SERVICES EFFECTIVELY. IT DOES COME BACK TO GROWTH. GROWTH CURES EVERYTHING. IF THEY CAN GET THE NHS WORKING, THEY CAN GET SOCIAL CARE FUNCTIONING, LOCAL AUTHORITIES ARE ALL BANKRUPT TACTICALLY.

THEY NEED TO COME TO THE END OF THIS FIVE YEARS AND SHOW, ONE, THE ECONOMY IS WORKING, TWO, THE PEOPLE'S LIVING STANDARDS HAVE IMPROVED. SO CONTINUE INCREASING REAL WAGES AND PUBLIC SERVICES THAT FUNCTION. I THINK THAT -- THAT IS WHAT THEY ARE GOING TO BE MEASURED ON ABOVE ALL. FRANCINE: THANK YOU BOTH FOR JOINING US, PHILIP ALDRICK AND JOHN STEPEK. COMING UP, MORE ON HOW DEEPSEEK HAS SENT SHOCKWAVES THROUGH THE TECH INDUSTRY. THIS IS "BLOOMBERG."

FRANCINE: CHINESE STARTUP DEEPSEEK HAS BEEN A GLOBAL MARKETS AS ITS COST EFFICIENCY AI MODEL IS LIKENED TO THAT OF OPENAI IN TERMS OF CAPABILITY. THE RELEASE OF R1 I SENT SHOCKWAVES THROUGH THE TECH INDUSTRY AND POSTED SIGNIFICANT CHALLENGES FOR NVIDIA. LET'S GET A VIEW FROM IPEK OZKARDESKAYA. DOES THIS CHANGE EVERYTHING FOR AI OR DO YOU HAVE MANY QUESTIONS ON THE CHINESE MODEL? >> ACTUALLY, IT DOES NOT CHANGE EVERYTHING FOR AI. FIRST OF ALL, I THINK EVERYBODY SHOULD CALM DOWN.

WHAT WE SAW YESTERDAY, THE MARKET WAS OBVIOUSLY AMPLIFIED BY THE HIGH VALUATIONS OF THE U.S. AI STOCKS, ALSO THE EXISTENT WORRIES REGARDING THE MASSIVE COST OF MESSING AI AND THE UNSATISFACTORY RETURN OF INVESTMENT LEISURE. WE HAVE A LOT OF UNANSWERED QUESTIONS IN DEEPSEEK, WHETHER DEEPSEEK'S MODEL IS INTEGRATABLE FOR EXAMPLE WITH OTHER APPLICATIONS.

WE WILL SEE THAT VERY SOON, REPORTEDLY, FEBRUARY. WE DON'T KNOW IF THEY REALLY BUILT A MODEL OF LESS THAN 6 MILLION AS THEY SAY THEY DID. WHAT WE UNDERSTAND IS THAT THE DEEPSEEK COMPANY, THEY A LOT OF NVIDIA CHIPS CHEAPER TO BUILD THEIR MODELS. THE IDEA, THE SIMPLE IDEA WE COULD STILL DO AN AI MODEL AT A CHEAPER PRICE IS OBVIOUSLY WAITING ON THE REVENUE OUTLOOK FOR MANY CHIP COMPANIES OUT THERE. I THINK THAT IS REALLY TO TALK

ABOUT A THREAT ON THE AI DOMINANCE AND A GAME CHANGING MODEL FROM DEEPSEEK. FRANCINE: YOU SAY VERY CLEARLY, IT BASICALLY BRINGS YOU THINK AN EQUAL PERFORMANCE JUST AT A CHEAPER PRICE. WHAT ARE THEIR MARKET IMPLICATIONS OF THIS? ARE WE GOING TO SEE MORE DEMAND FOR THE CHEAPER CHIPS? SO NVIDIA LOSES OUT AND OTHERS GAIN? >> FIRST OF ALL, THE IDEA THAT WE WOULD SEE A GROWING DEMAND FOR CHEAPER CHIPMAKERS WAS ALREADY THERE. THE IDEA THAT SOMEONE COULD CREATE WELL PERFORMING AI MODEL WITH CHEAPER CHIPS WOULD ONLY STRENGTHEN OUR CONVICTION THIS WILL BE HAPPENING PROBABLY SOONER THAN WE THOUGHT. BUT LOOKING AT NVIDIA, A COMPANY LIKE NVIDIA IS PUTTING OUT THE WORLD'S BEST-PERFORMING CHIPS AND THEY ARE BASICALLY SELLING THESE CHIPS TO THE WORLD'S BIGGEST TECHNOLOGY COMPANIES. THE BIGGEST TECHNOLOGY

COMPANIES MAKE UP TO 50% OF THEIR REVENUE IN THE THIRD QUARTER OF LAST YEAR. SO BASICALLY, THESE COMPANIES ARE PROBABLY NOT GOING TO SETTLE FOR CHEAPER CHIPS BECAUSE THEY'RE LOOKING FOR INNOVATION. I THINK THAT NVIDIA ITSELF, THE HIGH CONCENTRATION OF THIS BIG TECHNOLOGIES COMPANIES WILL PROBABLY NOW BE ALL OF THE SUDDEN A GOOD THING FOR NVIDIA THAT COULD HELP THE COMPANY WITH HER POTENTIAL DEMAND SHOCK FOR ITS EXPENSIVE CHIPS AND FOR THE OTHER COMPANIES, I THINK THE FACT THE IDEA OR THE POSSIBILITY OF MAKING LOW PERFORMING AI MODELS AT CHEAPER PRICES WILL SIMPLY INCREASE AND ACCELERATE THE ADOPTION OF AI. AND IT IS GOING TO INCREASE DEMAND FOR CHIPS.

FRANCINE: ONE OF THE OTHER QUESTIONS, WE HAVE LONG HEARD SOME OF THE COMPANIES WANT TO DO THEIR OWN CHIPS. IF THERE IS A WAY OF DOING SAME MODELS WITH CHEAPER CHIPS, IS IT EASIER FOR SOME OF THE BIG TECH TO GO INTO THAT SPACE AND WHEN? >> I THINK ONE OF THE BIGGEST THREATS FOR NVIDIA RATHER THAN CHEAP CHIPS IS THE POSSIBILITY OF THESE AI COMPANIES. THE AMBITION OF THE BIGGEST TECHNOLOGY PLAYERS LIKE GOOGLE PRODUCE TO BUILD THEIR OWN CHIPS AS YOU SAY. IN THAT SENSE, WE FEEL, GUESS, IT WOULD BE GREAT IF THEY COULD DO THAT ON CHEAPER CHIPS BUT IT WOULD BE EVEN BETTER IF THESE COMPANIES THAT DO HAVE THE MEANS TO DO THE BEST OF THE BEST COULD DO THAT ON THE BEST CHIPS OUT THERE. SO WHEN YOU'RE TALKING ABOUT INNOVATION DISRUPTIVE CHANGES, YOU HAVE -- YOU MAXIMIZE YOUR CHANCES OF GETTING THERE FASTER BY USING THE BEST TOOLS OUT THERE.

I DON'T THINK THESE COMPANIES WILL BE WILLING TO SETTLE FOR CHEAPER OPTIONS JUST BECAUSE IT COSTS LESS. IT ALL DEPENDS ON HOW INVESTORS SEE IT OF COURSE. FRANCINE: THANK YOU FOR JOINING US, IPEK OZKARDESKAYA FROM SWISSQUOTE ON THE VERY LATEST ON DEEPSEEK AND EVERYTHING TO DO WITH AI AND CHIPS. COMING UP, TRUMP TARIFFS AND TECH. WE DISCUSSED THAT WITH OUR SENIOR EDITOR FOR BLOOMBERG OPINION. THIS IS "BLOOMBERG." ♪ FRANCINE: THE DOLLAR STRENGTHENED AGAINST EVERY MAJOR CURRENCY AFTER COMMENTS FROM PRESIDENT TRUMP AND HIS TREASURY SECRETARY RENEWED CONCERNS OVER TARIFFS.

IT FOLLOWS A WILD DAY FOR GLOBAL MARKETS AFTER PROGRESS ON A CHINESE AI MODEL WEPT MORE THAN $500 BILLION FROM NVIDIA'S MARKET CAP, RAISING DIFFICULT QUESTIONS ABOUT AMERICA'S TECH AND SECURES YOUR THEIR SUPERIORITY. LET'S BRING IN TIMOTHY O'BRIEN. THANK YOU FOR JOINING US. I AM GOING TO CALL YOU THE TRUMP TRANSLATOR BECAUSE YOU HAVE BEEN FOLLOWING DONALD TRUMP OR OVER A DECADE. YOU UNDERSTAND HIS THINKING -- 30 YEARS.

YOU UNDERSTAND HIS THINKING PROBABLY MORE THAN MOST. WE DON'T KNOW WHAT IS A NEGOTIATING TACTIC, WHAT IS POLICY. WHAT DO YOU THINK IS DONALD TRUMP'S AND AGAIN WHEN IT COMES TO TARIFFS ON POLICY? >> I THINK HE HAS BEEN USING TARIFFS AS A NEGOTIATING TOOL. THE QUESTION IS WILL HE ULTIMATELY GO TO THE METS AND IMPOSE ONEROUS TARIFFS? I THINK SCOTT BESSENT IS AN INTERESTING CASE STUDY IN THAT REGARD. HERE IS SOMEBODY WHO WAS

PROFESSIONALLY BORN AND BRED IN WALL STREET, ASSET MANAGEMENT, FINANCE. AT HIS CORE, HE IS A FREE TRADER. NO ONE THINKS IMPOSING ONEROUS BURDENS OF TERRORIST -- CHAIR FOR JAMES IS GOOD FOR THE ECONOMY. -- BURDENSOME TARIFFS IS GOOD FOR THE ECONOMY. TRUMP GOT ELECTED IN PART BECAUSE OF ALL OF THE FINANCIAL AND INFLATIONARY PRESSURES THAT LANDED ON THE BIDEN ADMINISTRATION. THEY'RE GOING TO HAVE A MOMENT WHERE IF THEY REALLY PURSUE THIS TO ITS END, IT WILL HAVE POLITICAL AND ECONOMIC CONSEQUENCES FOR TRUMP AND THE U.S. ECONOMY AT HOME. BUT TRUMP IS NOT A RATIONAL

ACTOR OFTEN, AND A LOT OF WHAT HE DOES IS PERFORMATIVE. HE LIKES TO BE AN AGENT OF CHAOS. THAT MAKES HIM UNPREDICTABLE. BUSINESSES AND FINANCIAL

MARKETS OUT LIKE A PREDICTABILITY. FRANCINE: I'VE BEEN TOLD HE DOES NOT WANT A STRONG DOLLAR, UNCLEAR WHAT HE WANTS WITH CHINA. ARE THERE THREE THINGS YOU SAY THIS WILL ABSOLUTELY HAPPEN OR NOT HAPPEN UNDER TRUMP? >> I THINK YOU CAN LOOK ACROSS A CORE SET OF ISSUES HE HAS ALREADY ENGAGED WITH, DIPLOMATIC AND FINANCIAL.

HE IS COMING OUT OF THE GATES MAKING BOLD CLAIMS ABOUT THE USE OF FORCE, WHETHER MILITARY FORCE OR TARIFFS OR DIPLOMATIC FORCE. I THINK HE IS WAITING TO SEE THE KIND OF REACTIONS HE GETS. YOU SEE A LITTLE PREVIEW OF THIS IN COLOMBIA WITH THE STANDOFF OVER REPATRIATING COLOMBIAN MIGRANTS BACK TO COLOMBIA WHEN COLOMBIA SAID THEY WOULD NOT TAKE THEM AND THEN HE THREATENED TARIFFS AND THEY TOOK THEM. I DON'T THINK YOU SEE CANADA AND MEXICO RESPONDED THE SAME WAY OR CHINA.

THOSE ARE REALLY THE THREE BIG ONES. CHINA AND MEXICO -- WHETHER CANADA AND MEXICO JOINTLY ARE BIGGER TRADING A MORE IMPORTANT TRADING PARTNERS IN THE U.S. AND CHINA. THEY ARE ALSO PROVEN ALLIES.

THE FACT TRUMP IS GOING AT PEOPLE, TWO NATIONS THAT SHARE THE BORDER WITH THE UNITED STATES AND THEY ARE MASSIVE TRADING PARTNERS, AT THE EXPENSE OF BOTH COUNTRIES ECONOMIC INTEREST, IS NOT ABOUT LONG-TERM POLICY. I THINK IT IS SHORT-TERM POSITIONING. FRANCINE: WHAT IS GREENLAND ABOUT? I AM READING COPY, THIS IS CRAZY TALK? >> IT IS CRAZY TALK. GREENLAND AND THE PANAMA CANAL I THINK ALSO ARE PERFORMATIVE. SOMEONE GOT IN TRUMP'S EAR AND

SAY THESE ARE EMBLEMATIC OF THE GREAT GAME AND CHINA HAS AN INTEREST IN THE PANAMA CANAL, GREENLAND HAS NATIONAL RESOURCES. IT IS A PASSAGE TO THE ARCTIC. YOU CAN MAKE A RATIONAL CASE THAT SOMEWHERE IN SOME SCENARIO IT MAKES DIPLOMATIC SAYS, BUT IT REALLY DOESN'T. I THINK THE ISSUE IS HOW LONG DOES HE PLAY AT THAT GAME. FRANCINE: WHO DOES TRUMP LISTEN TO AT ANY GIVEN DAY? I HEARD THE CHIEF OF STAFF IS VERY GOOD AT SHUTTING HIM OFF. ELON MUSK I THINK DOES NOT HAVE

ANY OF US IN THE WEST WING BECAUSE OF HER. DOES HE LISTEN TO HER OR TO OTHERS? >> I THINK HE LISTENS TO HER ABOUT SCHEDULING AND ACCESS. REMEMBER, DONALD TRUMP DOESN'T REALLY LISTEN TO ANYONE ELSE. HE FAMOUSLY SAID "I KNOW MORE THAN THE GENERALS."

HE RECENTLY SAID HE IS A BETTER JUDGE OF HER INTEREST RATES SHOULD BE THAN THE FED CHAIRMAN. HE LIKES TO PRESENT HIMSELF AS THE FINAL EXPERT AND HE USUALLY IS. NO ONE REALLY HAS A FINAL SAY WITH HIM.

BUT HE IS A MUCH MORE TIGHTLY MANAGED ADMINISTRATION THIS TIME AROUND. I THINK THEY ARE TRYING TO BE MORE ON MESSAGE, TRYING TO PREVENT RANDOM ACCESS TO TRUMP. PEOPLE USED TO BE ABLE JUST CALL HIM ON THE PHONE.

THOSE DAYS ARE OVER. HE IS STILL NOT REALLY SOMEBODY TAKES ADVICE. FRANCINE: WHAT I HEARD ENDEAVORS OVER AND OVER, DON'T WANT TO BE THE EYE OF THE STORM.

CHIEF EXECUTIVE'S ARE TRYING TO LAY LOW. >> TRUMP 1.0, THE BUSINESS COMMUNITY WATCHED HIM -- TIM AND HOW HE NAVIGATED APPLE'S RELATIONSHIP WITH CHINA AS A MANUFACTURING PARTNER. HE MANAGED THAT BY KISSING UP TO TRUMP. ON THE DIPLOMATIC SIDE, SAW MACRON. TRUMP GAVE HIM A PASS ON SOME THINGS. I THINK THIS TIME AROUND,

EVERYONE IS KISSING THE RING. THE PROBLEM WITH TRUMP IS ONCE YOU KISS THE RING, HE TRIES TO SQUEEZE YOU FOR MORE. FRANCINE: TIM O'BRIEN, BLOOMBERG OPINION COMMENTARY A BLOOMBERG NEWS. UP BLOOMBERG BRIEF. THIS IS "BLOOMBERG." ♪

2025-01-30 16:01

Show Video

Other news

Нейро технологии и новая глава разума #ai #technology #brain #tesla #bmw #oxford #harvard 2025-02-13 04:51
Google Gemini Flash 2.0: The Most Cost-Effective AI Model for Production Apps? 2025-02-10 06:49
Tech Lifts Hong Kong Stocks to Three-Month High | Bloomberg: The China Show 2/7/2025 2025-02-09 03:25