Bezos and tim cook attending. Caroline a global ai coalition on his visit to the middle east and the next stop may be we will see him over on capitol hill. We will discuss that and more. We will start on these markets up. 25 . The nasdaq managing to pull itself up. This is once again really tackling inflationary pressures whether it is the ppi number or the cpi print showing inflation pressures dialing up. We see managing the nasdaq to outperform as markets pullback. I am looking at the two year yield where we are outperforming on the front end of the curve all the back end is pushing higher. The big move was yesterday and what is happening in the euro but what is happening in the Federal Reserve and global world banks and Central Banks and what the ecb said. Staying put in terms of Interest Rates but signaling that inflation pressures are dialing down and we could see cuts coming off by. 3 . We have a look at what else is performing. Crypto down. 2 and we just saw that 70,000 level. Ed there are a lot of stories. Apple is a name that we will look at and it is up. 8 early unionizations efforts are the main headline. There is a note that hedge funds are looking at the stock and considering what happens next with Artificial Intelligence in the context of value add. Hard to know what the driver is if any at all but we are higher at. 8 . We always Pay Attention to apple because of its waiting on major indices. There is an annual shareholder letter plus ai theme and i am very excited about it. J. P. Morgan is down. 9 monday night, i know that i was not year. They put the shareholder letter out and said ai. We will talk about the numbers behind that. Amazon not. 3 and andy jassys annual letter. The focus on ais interesting specific to aws. Amazon will be a facilitator and a place where ai is built by others and not building themselves. That is a story we have told quite a lot in the recent weeks and months. Caroline we are long shareholder letters. Ed put it so adequately eloquently, they want to be at the heart of infrastructure. Yes, they will build a substantial number of applications ourselves they are looking to others to build. You are right. Right now amazon lacks microsoft when it comes to ai because microsoft has access to openai. As they build the Building Blocks golding for Going Forward they can close the gap. We seek we think the investment and time is right. It will not only help the aws business marketplace Commerce Business where it will drive sales higher. Ed what we are talking specifically is bedrock, i think. Can go if you are a large enterprise player or a smaller start up and build your own large language model and take advantage of a thirdparty model. Caroline and i have spoken to anthropic and they talked about all of the business they are waiting through aws bedrock. What i do not know is amazons Cloud Business actually gaining new customers and growth or market share because of their strategy with bedrock . Poonam i think over time they will gain new customers. It is just a matter of getting them developed and getting the customers interested. We do think there is scope for amazon to continue to gain in that vertical. Caroline what is interesting is that googles event earlier this week and they were saying that it is startups coming to them for cloud. How much ultimately do companies diversify not go all in with one plan . Poonam diversification will happen across the board depending on what you are using and where you want to be. Amazon has done a great job in not just attracting the start but established business as. We think the scope is wide and they are in the early innings. We think that they lag but not for a long time. Ed let us talk about andy jassy who comes from aws, that was his world. The story since he has taken the helm of amazon has been about cost discipline. Do not even call it discipline, cutting costs and lowering cap x. He seems committed to that stale. Poonam he does. In fact they have been highlighting since last quarter about the 45 reduction that they have had perunit in their cost basis and they think they can press the pedal harder on that. Largely as they basically streamline the inbound fulfillment and parse out packages more efficiently to the Regional Distribution Centers that allow for sameday delivery. Ed one of our analysts that leads the coverage of the stock and we are really grateful to have you and your reaction. Amazon founder jeff bezos joined tech heavy rates that heavyweights at the white house state dinner. The attendees include his fiancee lauren sanchez, the apple ceo tim cook and executive lisa jackson. Brad smith was attending as well and actor robert nero and Venture Capitalists. You also had jamie dimon, and john gray of blackstone. And for me, the story is pretty clear, japan important for technology. And, the economy. Caroline and broadly for big gettogethers of important players no matter where they tend to be based. This is where some conversations are had and deals are done. Having had many intimate conversations but more luck but more broadly i like the star trek reference with the commentary out of the leader of japan. He was going to go boldly where no one has been before in terms of deepening the relationship. This is more broad. There is a delightful menu. Love that. This is about deepening ties not just from an Economic Perspective but a geopolitical perspective and what has happened with the philippines and what this means for chinau. S. Relations. Poonam i go straight to china stephanie i go straight to china. When the ceos turn up, let us bring the menu back up. That is contemporary modern american japanese fusion. That looks great. There is also a political element. Biden had a lot of big names in the white house in an election year. Caroline i think that is notable. Ultimately, trying to ensure that the economy is what biden can hang his hat on. Many are worried about the inflationary pressures and leading to what this means for bidenomics. But the tech heavyweights really clear. Coming up jamie dimon was busy at that particular state dinner but we will return our attention to what he said earlier on the week on his annual shareholder letter and what his results are pointing to when we get them later this week as well. Results mainly showing a focus on ai coming next. Meanwhile let us dive into what is happening at paramount because an interesting move for paramount directors, four are expected to depart during the sky dance media talks. So this is in the discussions to move with to merge with sky dance. A sony executive will be leading as well as some directors, the head of this exclusive negotiations that are going down to the wire the next week. We are currently at 1. 4 . This is bloomberg. Ameritrade is now part of schwab. Bringing you an elevated experience, tailormade for trader minds. Go deeper with thinkorswim our awardwining trading platforms. Unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. And sharpen your skills with an immersive Online Education crafted just for traders. All so you can trade brilliantly. Give into the rhythm of the islands and delight in a caribbean state of mind. Visit sandals. Com or call 1800 sandals. Caroline jp morgan kicks off earnings season at the start of them. It happens tomorrow. Earlier this week we heard from dame from jamie dimon where he focused on Artificial Intelligence. Running is now to discuss how banks are utilizing and investing in the technology we have evidence ceo which benchmarks and tracks ai Adoption Across the Financial Services sector. Jp morgan is the standout performer and do you think that is akin to the performance of the bank and the stock more broadly. Its performance is is incredibly strong in terms of its ai maturity. It is head and shoulders above other banks. It was early to the game. Jamie dimon made aia focus six years ago where he made clear that it would be an ai first organization. From that followed a lot of initiatives like establishing a research lab and doubling down on hiring talent and reorganizing the executive team. That has really play paid off and you can see according to our measurements you can see that they really stand out against other banks and are strong on ai capabilities. Ed we have been looking at the data behind the hiring and you made an interesting point which is six years ago this started. Let us show the chart. There is the ai hype of 2022 2023. But if you track hiring. What is so interesting is the title is jp morgan slows ai hiring but look how elevated it was in 2022 started back in 2020. How do you what do you make of how ahead of occur ahead of the curve jp morgan is . Alexandra first of all it is important in terms of the hype in 2022 and 2023 of ai and what we are heading into is more of a lets see what gets reproduction and it is harder than we think and the use cases from ideation to production. That just takes a little longer. Some of that slow down and is a little bit of a what talent we actually need . But when you look at the chart you can see that really being on a hiring tear for the last six or seven years and the proportion of ai talent and the caliber of ai talent in the bank is second to none. A lot of the banks are looking at the onset of using generative ai and where are we using it in the bank and which platforms will be use whether it is which one of those and how does it fit into our particular needs and how do we refine it so it gives us the best output possible. There is a bit of a lets see what we can use internally of the ai talent that can refined that refine that and accelerate again. And think about who we hire externally. It should be noted that we look across the Banking Sector and even the banks that cut employees and to keep the relatively steady talent. Caroline speaking of was the demonstration and the commitment to elevating almost two executive level around ai. They mention the importance of creating chief data and analytics officer that sits in the operating committee. That person is teresa who was who i was lucky enough to speak to at an event. It has been notable that she has been galvanizing the focus showing that all talent is of is online where ai can bring a change in productivity. Where are they seeing a drive down in costs or passing this on to the user, jp morgan . Alexandra when it comes to driving and the use of ai, and when you sort of look at the letters when you are talking about gaining efficiency and really making the bank strong and lean, and robust for withstanding any macro challenges on in the future. So looking at driving down the cost and bringing up efficiency and productivity and ai being used to also see where you can elevate revenue. It is where it is in every knocking cranny of the bank looking at the ways to create a return on investment. And then with the ai tools, that gets passed on to the customary. And better customer management, experiences, time, and ed do you think jamie dimon has a good understanding of Artificial Intelligence . Alexandra he saw it early and knew that it would be impactful. He was one of the first ceos, bank ceos to go out and say we are going to be an ai first company. Many banks would be like we are going to be great banks and using ai to become better. He was a visionary with that and has a good understanding. Ed he has more upbeat about that than bitcoin. Alexandra, great to have you. The e. U. Top tech regulator says that ai could be as disruptive as the atomic bomb. The executive Vice President of the European Commission joint bloomberg to talk about the current state of ai. It is top of mind for us to make sure that the market stays competitive and when everything gets fueled by Artificial Intelligence. It will change the marketplace . You have a timeline on when we could see movement on a . Margrethe we do not have a fixed timeline what we want to produce results as fast as possible for the involved companies and their benefit. We will be getting there soon. Annmarie we are talking about microsoft and openai, but they are not the only players. Amazon with an almost 3 billion investment into anthropic, which complete competes with openai. Is that something you are looking at as well . Margrethe we will be having vigilant and keen attention to what is happening. We see a lot of entrenched market power when it comes to technology and it is really important that now that we in that when we have a new technology that is also a new world that we are looking into that we make sure that it is a competitive new world. Annmarie you just recently went after three big u. S. Tech companies and three is a crowd. I am curious to know which of these you are honing in on and a lot of people think to see it is apple that the e. U. Has a lot of problems in. A lot of problems with. Margrethe the purpose of the act is to open the market to make sure that customers can get more choice. Obviously, we are looking at getting out of self referencing so that if you have a Google Search you do not just get a google product. And we are looking at how businesses can get a real relationship with customers. So to get rid of the so people have choice. So they want to have apple payment environment or a more direct and cheaper relationship with their service provider. Annmarie among those three do you have a priority target . Margrethe well, we have opened these five cases because we think they are important. We might have more cases in the pipeline so we have given retaining orders for what might be evidence once we are moving forward. These five cases are all priority and we think that they are absolutely key if our suspicions are confirmed. That we get compliance, because this is what opens the market and that is the basic idea of the Digital Markets act for many more businesses to have a fair chance to get to customers. Do you want to close out . Should i . Normally id hold. But. Taking the gains is smart here, right . Feel more confident with stock ratings from j. P. Morgan analysts in the chase app. When youve got a decision to make. The answer is j. P. Morgan wealth management. Ed ok, time for talking tech. Kkr is reviewing options for a sale or ipo for bmc software which could be worth as much as 50 million including debt which is according to sources that while no final decisions will be made,kkr has been favoring an ipo. Plus soy tech is soitec is considering building a factory in the United States as it expands from arizona to texas. The consideration would mean that it would add to its global factory facilities alongside salmon for singapore, elgin, and france. Saudi arabia and the uae are rushing to build out expensive data essential center infrastructure. Both countries lag behind western europe terms of capacity with the hopes of closing that gap in a few years. In a recent report it is estimated that ai will contribution 96 billion to the uae and 135 billion to saudi arabias economy by 2030. Caroline meanwhile, let us talk about employees in an apple store who just petitions to unionize. This is the first one in a year long lull. Mark is going to remind us of the context when it comes to apple because they are not the first door looking to unionize. Mark that is a great part. The efforts really kicked into high gear right in the middle of the covid pandemic. In 2022 you saw the retail store in maryland petition to unionize and they successfully unionized and they are recognized as a unionized apple retail store. The penn station store and a mall in oklahoma city, oklahoma is a unionized store. There have been a few other stores that attempted, one in st. Louis, surrey and one in atlanta, georgia. One of those unions chastised the Union Company and ended up citing with apple siding with apple and now you have the short hills mall store joining in. It is still early, they have petitioned and they have 100 for employees who would be a part of the union. There needs to be a vote and they need to get to the bargaining table with this is the process and it is a Major Development petitioning in publicly stating that they are going to unionize. This is the fifth store to attempt. Ed they are trying to unionize. This is a path rotted by amazon and we have been through a similar story arc of that company. The next question is what is apples attitude towards unionization and the companys approach. Mark the company is against it. They have been holding roundtables at the store for months, pushing back on the idea of that team unionizing. They do not want to change their perks and benefits, the pay strategy. Apple is a company that wants things to be consistent and completely under their control. Unionization upsets that balance that the company has enjoyed her as long as it has under tim cook and steve jobs. This is not something that apple wants. I think they are happy that out of the 270 Retail Stores in the u. S. Only two have success in the successfully unionized and out of those they have not given them anything. Ed coming up, san sam altman pitches a global ai coalition on his visit to the middle east. We will break down the takeaways from his trip next. This started as like i am worried about chips in the supply of ai accelerators, but what we broke yesterday and that story is that this is something bigger and it is about energy and data centers and about who takes part, private and Public Sector coming up next. This is bloomberg technology. Welcome back to bloomberg technology. Ed ludlow here in san francisco. Caroline we are thing nasdaq and tech stocks outperform on a day when bond yields are still selling off on the end of the curve. 10year gilts four basis points higher. We are evading inflationary pressures with ppi today, cpr yesterday still showing inflation going the wrong direction for the Federal Reserve if they were banking on a cut come june. People are taking those bets off the table. We are treading water ahead of earnings season. The banks kick that off tomorrow. Individual movers. On the outside a lot of the key names you are used to. Nvidia, apple, even amazon at a new record high today after it shareholder letter area