Trump Signs Funding Deal, Tech Selloff Drags Stocks Down, More

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What is the main topic discussed in this episode?

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.
Doug Krisner 0:30
News When You Want It with Bloomberg News Now.

What led to the U.S. government shutdown being resolved?

Doug Krisner 0:32
I'm Doug Krisner. The partial U.S. government shutdown is over after President Trump signed a funding deal he negotiated with Senate Democrats.
Unknown 0:41
This bill is a great victory for the American people. Instead of a bloated and wasteful omnibus monstrosity full of special interest handouts, we've succeeded in passing a fiscally responsible package that actually cuts wasteful federal spending

How are Democrats negotiating immigration enforcement funding?

Unknown 0:59
while supporting critical programs for the safety, security, and prosperity of the American people.
Doug Krisner 1:04
So the government is now funded through September 30th. Even so, the Department of Homeland Security has funding only through February 13th, as the president continues to negotiate with Democrats on new restraints for immigration enforcement agents. Here is Bloomberg's Megan Scully.
Megan Scully 1:21
Democrats have put forth several demands, including ICE agents and Border Patrol agents that are in American cities, Minneapolis and elsewhere, taking their masks off. And that has been a nonstarter with House Speaker Mike Johnson. We have seen the Department of Homeland Security actually came out yesterday and said that ICE agents will be wearing body cameras, which has been another point of contention.
Doug Krisner 1:47
That is Bloomberg's Megan Scully. And then media and financial data shares were also hit. The iShares expanded tech software sector ETF was down today by 4.6%. After the bell, advanced micro devices reported fourth quarter earnings above Wall Street estimates. However, The company gave a disappointing forecast for the current period. AMD is the main challenger to Nvidia in the market for those AI processors. Here's Ray Wong, CEO of Constellation Research.
Ray Wong 2:34
Well, right now there isn't a credible alternative to Nvidia.

What impact is the tech selloff having on the stock market?

Ray Wong 2:37
the moment but when they get out their helios chips and when they build the racks that are going to come in place that's going to be the first time nvidia is going to have a credible challenge to the gpu dominance that they've had for quite some time that's what the market's waiting for but they haven't taken orders yet they haven't announced as much as they need to and right now these are just pure performance earnings pre-gpu pre-ai that they've been able to do and it's a pretty good number there but once again the street isn't interested So this is kind of where we are at the moment.
Doug Krisner 3:03
That is Ray Wong from Constellation Research. Shares in AMD were down by more than 6% in late US trading. After the Bell Super microcomputer gave a strong forecast for sales in the current quarter, we have more from Bloomberg's Charlie Pellett.
Charlie Pellett 3:17
It eases concerns the server maker is failing to benefit from demand for gear to run AI data centers. Supermicro's outlook suggests it's taking advantage of its strong position as a maker of servers that house the powerful chips running AI workloads. The company appears to have made progress in its effort to control the costs of getting those machines into customers' hands and accurately predicting when contracts will close.
Doug Krisner 3:43
In New York, Charlie Pellett, Bloomberg Radio. Chipotle Mexican Grill reported disappointing sales for the fourth quarter, and the company's target for full-year sales fell short of Wall Street expectations. We got reaction from Abby Roach, Senior Portfolio Analyst at Allspring Global Investments.
Abby Roach 4:01
Certainly in light of the environment that we're in, my expectation was for them to be a bit conservative with the guidance, but this is lower than the expectation and I think is certainly not what we expect from Chipotle.
Doug Krisner 4:12
Abby Roach from Allspring Global Investment shares in Chipotle were down 6% in late U.S. trading.
Amy Morris 4:18
executives from netflix and warner brothers discovery faced a senate panel today to defend their merger against allegations it will hurt competition in the market for streaming we have more from bloomberg's amy morris in washington the u.s justice department and europe's antitrust watchdog are reviewing the netflix warner brothers transaction for antitrust concerns republican senator mike lee of utah is chair of the senate subcommittee that oversees competition and antitrust policy if approved

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