Trump: Iran Should Worry, Alphabet Sinks on Spending Forecast, More

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Unknown 0:00
The UK stands apart as a place to do business, not because of one advantage, but many working together. Over £10 trillion in capital, four of the world's top universities, a 10-year industrial strategy in action, its stability with dynamism, global reach with local depth. It all adds up to greater growth. Find out more at business.gov.uk slash growth.
Amy Morris 0:28
News when you want it with Bloomberg News Now, I'm Amy Morris. President Trump sent a warning to Iran's leaders as U.S. military forces amass in that region, with diplomatic talks between Washington and Tehran set for later this week. President Trump on Iran's supreme leader.
Tom Yamous 0:44
I would say he should be very worried, yeah, he should be. That country's a mess right now because of us. We went in, we wiped out their nuclear. If we didn't take out that nuclear, We wouldn't have peace in the Middle East.
Amy Morris 0:56
President Trump speaking with Tom Yamous on NBC News. Iran's foreign minister says his country will hold nuclear talks with the U.S. in Oman on Friday. Iran wants those talks to focus only on nuclear issues.
Marco Rubio 1:09
Secretary of State Marco Rubio. They will have to include certain things, and that includes the range of their ballistic missiles. That includes their sponsorship of terrorist organizations across the region. That includes the nuclear program, and that includes the treatment of their own people.
Amy Morris 1:26
Heather Conley is a senior fellow at the American Enterprise Institute. She tells Bloomberg that this is part of the dance that comes with gunboat diplomacy.
Heather Conley 1:34
We've got, you know, a carrier strike group. We are building up significant forces in the Middle East, and we are compelling, in many ways, Iran to the negotiating table. They're trying to wrestle back a little of the initiative.
Amy Morris 1:47
AEI senior fellow Heather Conley on balance of power with Joe Matthew. And President Trump spoke with Chinese President Xi Jinping today in a lengthy phone call, including talks about trade and geopolitical flashpoints like Taiwan.

What warning did President Trump give to Iran's leaders?

Amy Morris 2:01
China says it has no intention of stepping away from its long-term plans of reunification with Taiwan. Trump is scheduled to visit Beijing in April. Oil surged on top of a tech route as stocks extended losses. Alpine Woods Capital Chief Market Strategist Sarah Hunt says even when earnings do beat expectations, it's just not enough.
Sarah Hunt 2:20
The market was coming into all of this on fairly high levels and had a lot of expectations. And even if you're meeting some of those, it's not good enough in an environment where people are starting to get scared again about what is going to get disrupted by AI.
Amy Morris 2:32
Hear more from Sarah Hunt on the Bloomberg Businessweek Daily podcast. Alphabet reported fourth quarter revenue that beat expectations, but its AI spending forecast for the year blew past investor expectations. They expected $119 billion. Alphabet says it'll be closer to $175 to $185 billion. And that sent the Google parent down nearly 8% in the post market. It's now clawing back some of those losses. Now it's down a little bit more than 1%. Qualcomm reported first quarter earnings that beat, but the company's second quarter forecast missed. Shares of Qualcomm are down about 9% in the post market. Let's check those closing numbers. We do it for you each day here at Bloomberg. The S&P down 35 points. NASDAQ down 351 points.
Amy Morris 3:15
The Dow gained 260 points. The 10-year Treasury yield at 4.27%. The 2-year yield at 3.55%. Bitcoin down 3.75%, now near $73,000. And some other stories we're watching for you. The Supreme Court has cleared California to use its new congressional map that favors Democrats during this year's midterm election. The justices denied a request from the California Republican Party and the Department of Justice to prevent the state from using its new voter-approved map on the grounds that it's racially gerrymandered, which would make it illegal. California leaders have maintained that this new map was drawn purely to counteract the Republican redistricting in Texas. The Department of Homeland Security will immediately reduce its enforcement presence in Minneapolis by 700 agents and will refocus their efforts on more targeted immigration operations at local jails.

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