Bloomberg Businessweek

The people, companies and trends shaping the global economy. Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Another rally in tech companies after an artificial intelligence-driven rout drove stocks higher ahead of economic data that will help shape the Federal Reserve outlook. Gold topped $5,000. The dollar fell. Following a surge that added $1 trillion to the S&P 500’s value at the end of last week, the index kept rising to approach its all-time highs. The technology firms that were at the center of a bruising slide continued to bounce. A gauge of chipmakers climbed 1.4% while an ETF focused on software names extended a back-to-back advance to almost 7%. Oracle Corp. jumped 9.6%. In order to finance its AI ambitions, Alphabet Inc. is set to raise $20 billion from a US dollar bond offering — more than the $15 billion expected — and is also pitching investors on what would be its first ever offerings in Switzerland and the UK. The latter would include a rare sale of 100-year bonds. Traders are also gearing up for a busy week of economic data that include the two most-consequential snapshots — employment and inflation. The jobs report - due Wednesday - is expected to show payrolls rose 69,000 in January. The unemployment rate is seen steady at 4.4%. The data will also include historical revisions that are anticipated to show a sizable downward adjustment to payrolls in the year through March 2025. Today's show features: See omnystudio.com/listener for privacy information.

Since ChatGPT arrived on the scene some three years ago, analysts have been warning that entire industries, including software programming, legal services and film production, are at risk of being disrupted by artificial intelligence. But it took a wave of disappointing earnings reports, some improvements in AI models, and the release of a seemingly innocuous add-on from AI startup Anthropic to suddenly wake up investors en masse to the threat. The result has been the biggest stock selloff driven by the fear of AI displacement that markets have seen. And no stocks are hurting more than those of software-as-a-service (SaaS) companies. Sukhinder Singh Cassidy, the CEO of cloud-based accounting software provider Xero, explains why she believes the firm's small business tools will be enhanced by AI, not overtaken, as the firm builds its large language model (LLM) "on the back of" AI models. Sukhinder speaks with Carol Massar and Tim Stenovec on Bloomberg Businessweek Daily. See omnystudio.com/listener for privacy information.

Featuring some of our favorite conversations of the week from our daily radio show “Bloomberg Businessweek Daily.” Hosted by Carol Massar and Tim Stenovec Hear the show live at 2PM ET on WBBR 1130 AM New York, Bloomberg 92.9 FM Boston, WDCH 99.1 FM in Washington D.C. Metro, Sirius/XM channel 121, on the Bloomberg Business App, Radio.com, the iHeartRadio app and at Bloomberg.com/audio. You can also watch Bloomberg Businessweek on YouTube - just search for Bloomberg Global News. Like us at Bloomberg Radio on Facebook and follow us on Twitter @carolmassar @timsteno and @BW See omnystudio.com/listener for privacy information.

The people, companies and trends shaping the global economy. Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Trump administration officials are exploring opening an antitrust investigation into US homebuilders as the White House sharpens its focus on tackling the country’s housing affordability crisis. The Department of Justice could open the probe in the coming weeks, according to people familiar with the discussions. No decision has been made and the administration may abandon the effort without launching an investigation, the people said, asking not to be identified discussing non-public information. One potential focus is on how information is shared through an industry trade group called Leading Builders of America, according to the people. Officials have grown concerned that the trade group — whose members include Lennar Corp. and DR Horton Inc. — could be used to restrict housing supply or coordinate pricing, the people said. A White House representative referred a request for comment to the Department of Justice, which declined to comment. Representatives for the homebuilders and the trade group didn’t immediately respond to requests for comment. The administration’s interest in homebuilders comes during a period where the cost of buying a home is at its most expensive in decades, with the Covid-era housing boom and subsequent interest rate hikes weighing heavily on buyers. It’s also a precarious time for the builders themselves, with the inventory of unsold homes hovering at high levels. President Donald Trump put the industry on alert in October, when he used a social media post to compare big homebuilders to The Organization of the Petroleum Exporting Countries, which wields immense control over the oil market. Today's show features: See omnystudio.com/listener for privacy information.

ConnectOne Bancorp delivered an 8% increase in adjusted pre-provision net revenue in its most recent quarter, reflecting margin expansion and operating efficiency. Bloomberg Intelligence notes that management tempered loan-growth expectations for 2026 to 3-5% from 5% vs. estimates of 5.5%, and expects net interest margin to exit 2026 at 3.35-3.4% vs. consensus' 3.45%. Frank Sorrentino, Founder and CEO of ConnectOne Bank discusses the state of regional and local banks as Santander snaps up Webster for $12 billion in a push for US expansion. Sorrentino says smaller banks benefit from consolidation as clients move from firm to firm and bank product options change. He also discusses the state of the consumer and the housing market as the Trump administration mulls different housing-related proposals centered around affordability. Frank speaks with Carol Massar and Tim Stenovec on Bloomberg Businessweek Daily. See omnystudio.com/listener for privacy information.

The people, companies and trends shaping the global economy. Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Bitcoin tumbled below $63,000 as the unwinding of leveraged bets and broader market turbulence deepened a selloff that has wiped out all of the gains since President Donald Trump’s election set off a speculative rush into cryptocurrencies. The token fell as much as 14% Thursday to $62,267, the lowest since October 2024. The rout has erased half of Bitcoin’s value since it reached a record four months ago and has spread to other tokens, related ETFs and companies like Strategy Inc. that hold vast sums of coins. The downturn has marked an abrupt retreat from Bitcoin’s meteoric rise through much of last year, when the return of the crypto-friendly Republican to the White House sent investors piling into such tokens and the Wall Street vehicles that have sprouted up around them. The market started cracking this month as rising geopolitical tensions sent tremors across global financial markets and curbed risk taking. That sparked Bitcoin’s precipitous decline from mid-January and set off a self-reinforcing cycle of selling as funds liquidated assets to meet redemptions and unwind leveraged bets. The slide has echoes of the one in 2022, when prices retreated sharply from the surge seen during the easy-money era of the pandemic as the Federal Reserve tightened monetary policy. It has already taken a toll on intermediaries like the exchanges Coinbase Global Inc., whose shares have tumbled more than 30% this year, and Gemini Space Station Inc., which said it plans to cut up to 25% of its workforce and wind down operations in the UK, European Union and Australia. Today's show features: See omnystudio.com/listener for privacy information.

Amazon said it plans to spend billions more than expected on data centers, chips and other equipment, fueling investor concerns that the company’s massive bet on artificial intelligence will take longer to pay off than anticipated.The company reported $39.5 billion on property and equipment expenses in the fourth quarter, topping estimates by almost $5 billion, and said its capital expenditures would reach $200 billion this year. Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec speak with: Bloomberg Intelligence Senior Analyst for E-Commerce and Athleisure Poonam Goyal and James Cakmak, Co-Founder and Chief Investment Officer at Clockwise Capita See omnystudio.com/listener for privacy information.

Jenny Rooke, Ph.D., is the founder and Managing Director of Genoa Ventures. She leverages her unique toolkit of genetics domain expertise, strategic business acumen, and venture investing to launch and empower the next generation of category-defying companies at the convergence of technology and biology. Dr. Rooke has nearly two decades of investing experience, beginning at Fidelity Biosciences in 2006 as a Kauffman Fellow. Coming off the annual JPMorgan Healthcare Conference in January, Dr. Rooke says she's encouraged by new scientific tools in development as well as the broader tailwinds for the biotech sector. She discusses her takeaways from the conference and the importance of emerging specialties in so-called “precision medicine” with Carol Massar and Tim Stenovec on Bloomberg Businessweek Daily. See omnystudio.com/listener for privacy information.

The people, companies and trends shaping the global economy. Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Alphabet Inc. shares slipped after the company reported fourth-quarter revenue that beat expectations but said it plans to spend far more than investors expected in 2026. The Google parent said it will spend $175 billion to $185 billion this year, compared with the $119.5 billion analysts expected. The company’s fourth-quarter sales, excluding partner payouts, were $97.23 billion, surpassing the $95.2 billion expected on average by analysts, according to data compiled by Bloomberg. Chief Executive Officer Sundar Pichai said the investments are paying off. “We’re seeing our AI investments and infrastructure drive revenue and growth across the board,” he said Wednesday in the statement. “Search saw more usage than ever before, with AI continuing to drive an expansionary moment.” Google Cloud revenue was $17.7 billion, beating the $16.2 billion analysts expected. Google has raced to reinvent its business for the AI age, working to keep consumers in the habit of going to its search page even when they could also go to chatbots from rivals like OpenAI. The company has quickly improved its Gemini model and integrated it throughout its products — an effort that has required massive investment in data centers and chips for model improvement and cloud customers. The industry has leaned on Google’s progress. Google is supplying up to one million of its specialized AI chips to Anthropic, cementing Google’s position as a key infrastructure provider in the AI space. Gemini will also be a provider of AI for Siri on Apple Inc.’s iPhones. The Gemini app has 750 million monthly active users. Today's show features: See omnystudio.com/listener for privacy information.

Driivz, a company owned by publicly-traded Vontier, is a global software supplier to electric-vehicle charging operators and service providers. It aims to accelerate the plug-in EV industry’s ongoing transformation using a cloud-based platform that spans EV charging operations, energy management, advanced billing capabilities and driver self-service tools. Shiri Levi-Laor was appointed on January 14 as the new Chief Executive Officer of Driivz. She joined the firm at the start of 2025, previously serving as Chief Operating Officer. She discusses her company's technology offerings and the EV market outlook amid recent sales slumps at Tesla and China's BYD. Shiri speaks with Carol Massar and Tim Stenovec on Bloomberg Businessweek Daily. See omnystudio.com/listener for privacy information.

The people, companies and trends shaping the global economy. Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. A tech selloff dragged down stocks from near-record levels amid a rotation into more economically sensitive industries. A flare-up in geopolitical risks lifted oil while gold bounced after a historic rout. Bitcoin hit the lowest since President Donald Trump’s election victory. The plunge in software makers weighed on trading as Anthropic’s automation tool heightened concerns their core businesses are at risk. The S&P 500 fell 0.8% and the Nasdaq 100 slid 1.6%. In late hours, Advanced Micro Devices Inc. gave a disappointing forecast. Energy firms joined crude higher as the US Navy shot down an Iranian drone headed toward an aircraft carrier in the Arabian Sea. Despite losses in major benchmarks, most shares in the S&P 500 actually rose. FedEx Corp. - an economic barometer - extended a record-breaking rally. Walmart Inc. topped $1 trillion. Bets on AI companies have dominated the US equity market for three years, but a growing number of investors are now wagering that run, led by the “Magnificent Seven” megacaps, is giving way to broader market participation. In fact, a violent rotation has taken place in 2026, with value shares far outpacing growth. Today's show features: See omnystudio.com/listener for privacy information.

Brazilian fintech company PicPay launched in 2012 as a digital wallet and now operates as a full-service digital bank with nearly 66 million customers. Controlled by the Batista family, owners of JBS, PicPay has posted strong revenue and profit growth, becoming one of the first major Brazilian companies to tap US equity markets since Nu Holdings’ blockbuster IPO in 2021. The offering was led by Citigroup, Bank of America, and Royal Bank of Canada. Eduardo Chedid is the CEO of PicPay. He has more than 20 years of experience in the electronic payment sector and has helped build PicPay into Brazil's third-largest digital bank. Eduardo discusses to firm's US market debut, and prospects for continued growth in the fintech sector with Carol Massar and Tim Stenovec on Bloomberg Businessweek Daily. See omnystudio.com/listener for privacy information.

The people, companies and trends shaping the global economy. Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Elon Musk plans to merge SpaceX with xAI, according to people familiar with the matter, in a deal that encompasses the billionaire’s increasingly costly ambitions to dominate artificial intelligence and space exploration. The deal was announced in a memo on Monday, the people said, asking not to be identified as the information isn’t public. The combined company is expected to price the shares at about $527 each, and would have a valuation of $1.25 trillion, some of the people said. Representatives for SpaceX and xAI didn’t immediately respond to requests for comment. Bloomberg News earlier reported on the discussions. SpaceX is planning an initial public offering that could raise as much as $50 billion, Bloomberg News has reported. It also discussed a possible merger with Tesla. The deal brings together two of the largest closely held companies in the world. XAI raised funds at a $230 billion valuation in January, while SpaceX was set to go ahead with a share sale in December at about a valuation of about $800 billion, Bloomberg reported, and is exploring a possible IPO. It also further entangles Musk’s various business ventures. The billionaire acquired social media platform Twitter in late 2022, renamed it X, then merged the site with his artificial intelligence startup xAI in a $33 billion deal. XAI, which also operates chatbot Grok, is an expensive operation, burning around $1 billion a month in service of its stated ambition to gain “a deeper understanding of our universe.” A merger with SpaceX pools capital, talent, access to compute — and blurs corporate boundaries. The tie-up may crystallize Musk’s vision to put data centers in space to do complex computing for AI. SpaceX is requesting permission to launch as many as a million satellites into the Earth’s orbit for the plan, according to a filing Friday. Today's show features: See omnystudio.com/listener for privacy information.

Aon's initial 2026 margin guidance is slightly better than analyst estimates, on the heels of a solid fourth quarter. Bloomberg Intelligence notes that organic growth was in line with Wall Street as upside in reinsurance offset a miss in health. The 2025 result of 6% is close to the previous three years but better than peer Marsh. The consolidated adjusted operating margin beat consensus and expanded from a year earlier making the 2025 result also better than estimates. Edmund Reese, Executive Vice President and Chief Financial Officer of Aon, discusses the key risks facing the firm in 2026 and how it is positioning itself to better serve clients and stakeholders amid global uncertainty. Edmund speaks with Carol Massar and Tim Stenovec on Bloomberg Businessweek Daily. See omnystudio.com/listener for privacy information.

Featuring some of our favorite conversations of the week from our daily radio show "Bloomberg Businessweek Daily." Hosted by Carol Massar and Tim Stenovec Hear the show live at 2PM ET on WBBR 1130 AM New York, Bloomberg 92.9 FM Boston, WDCH 99.1 FM in Washington D.C. Metro, Sirius/XM channel 121, on the Bloomberg Business App, Radio.com, the iHeartRadio app and at Bloomberg.com/audio. You can also watch Bloomberg Businessweek on YouTube - just search for Bloomberg Global News. Like us at Bloomberg Radio on Facebook and follow us on Twitter @carolmassar @timsteno and @BW See omnystudio.com/listener for privacy information.

The people, companies and trends shaping the global economy. Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Kevin Warsh waited almost a decade before finally clinching President Donald Trump’s nomination to be chair of the Federal Reserve. He won’t need to wait as long before his first big test in the job. Having won the race with a promise of “regime change” at the Fed, suggesting he would make significant changes, Warsh has pledged to shrink the Fed’s balance sheet and argued that a productivity boom driven by artificial intelligence will keep inflation low. While that prognosis was enough to convince Trump, his Fed pick will now need to convince fellow policymakers and investors. After cutting rates three times late last year the Fed hit pause in January amid persistent inflation, signs of a stabilizing labor market and expectations for stronger growth in 2026. Traders aren’t pricing another rate cut until June, at the earliest. The tension in Trump’s demand for cheaper borrowing costs may ultimately be resolved by a weakening labor market or lower inflation. Such a backdrop would greenlight Warsh to push for more rate cuts, and possibly win support from other policymakers. Today's show features: See omnystudio.com/listener for privacy information.

The Trump administration has pushed a sweeping policy agenda intended to hinder immigration. This has included a move in September to increase the fees on H-1B visa applications to $100,000 apiece, a staggering tenfold hike, along with other changes that have made the program less desirable to employers. Foreign-born residents are facing increasing hostility from Washington, regardless of their legal status. For many, the long-term viability of a career in Silicon Valley seems less certain than ever. India is trying to attract skilled professionals to return home with policies like Bharat-Talent and Bharat-Return, and some foreign-born tech workers are already pivoting to the world's most populous country, where the tech industry is maturing and offering new opportunities. Saritha Rai details these developments in a Bloomberg Businessweek magazine, and speaks with Carol Massar and Tim Stenovec on Bloomberg Businessweek Daily. See omnystudio.com/listener for privacy information.

Breaking news from the White House. President Donald Trump said he intends to nominate Kevin Warsh to be the next chair of the Federal Reserve, according to a post on his Truth Social platform. “I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” Trump wrote. “On top of everything else, he is ‘central casting,’ and he will never let you down.” Warsh, who served on the US central bank’s Board of Governors from 2006 to 2011 and has previously advised Trump on economic policy, would succeed Jerome Powell when his term at the helm ends in May. It marks a comeback for Warsh, 55, whom the president passed over for the top job in 2017 when he selected Powell. If confirmed by the Senate, the former Fed governor will take charge of US monetary policy at a time when many economists and investors see its traditional insulation from elected officials as being under threat from the White House. Warsh aligned himself with the president in 2025 by arguing publicly for lower interest rates, going against his longstanding reputation as an inflation hawk. See omnystudio.com/listener for privacy information.

The people, companies and trends shaping the global economy. Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Apple Inc.’s revenue in the holiday quarter trounced Wall Street estimates, driven by strong demand for the new iPhone 17, growth in services and a rebound in China. Revenue jumped 16% to $143.8 billion in the period that ended Dec. 27, setting a record, the company said in a statement Thursday. Analysts had estimated $138.4 billion on average, according to data compiled by Bloomberg. Apple’s own projections were for an increase 10% to 12%. “IPhone had its best-ever quarter driven by unprecedented demand, with all-time records across every geographic segment,” Chief Executive Officer Tim Cook said in the statement. The results reflect the success of Apple’s latest iPhone, a product line that accounts for roughly half its revenue. Higher-end versions of the device have been especially popular, helping further fuel sales and profit for the company. Apple’s renewed growth should help ease concerns about its artificial intelligence push, which is getting an overhaul this year after recent stumbles. The performance also suggests that the company is coping with tariffs, which Apple previously said would create a $1.4 billion headwind in the quarter. Today's show features: See omnystudio.com/listener for privacy information.

SpaceX has lined up four banks to lead its initial public offering, according to people familiar with the matter, as Elon Musk’s rocket and satellite firm moves forward with plans for the biggest-ever listing. The company sees Bank of America Corp., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley in senior roles, the people said, asking not to be identified as the information isn’t public. Kelly Rodriques is the CEO of Forge Global, a leading provider of marketplace infrastructure, data services, technology and investment solutions for the private market. The firm was recently acquired by Schwab in a deal expected to close this year. Kelly breaks down Forge’s latest data highlighting 2025 private market performance and expectations for the IPO market in 2026, including a protentional mega-offering for SpaceX. He speaks with Carol Massar and Tim Stenovec on Bloomberg Businessweek Daily. See omnystudio.com/listener for privacy information.