Bloomberg Daybreak: Europe Edition cover image

Bloomberg Daybreak: Europe Edition

Nvidia: DeepSeek AI ‘Excellent’, Trumps Global Tariff Pledge & UK Pension Shakeup

Jan 28, 2025
In this discussion, Mary Nicola, a strategist at Bloomberg Markets Live, analyzes the impact of DeepSeek, a Chinese AI startup releasing a groundbreaking open-source model. She highlights how this innovation challenges major players like Nvidia, leading to significant market sell-offs. The conversation also touches on President Trump's bold tariff proposals and their potential effects on US trade. Additionally, Nicola discusses the UK's plans to utilize pension fund surpluses to stimulate economic growth, reflecting evolving market dynamics.
16:53
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Episode guests

Mary Nicola

Podcast summary created with Snipd AI

Quick takeaways

  • DeepSeek's new AI model has significantly impacted the tech market, leading to a $1 trillion sell-off and concerns for established companies' valuations.
  • The UK government's plan to allow pension fund investments aims to unlock £50 billion for growth while raising concerns about potential economic risks.

Deep dives

DeepSeek's Disruption of the Tech Market

The emergence of DeepSeek's artificial intelligence model has caused a significant upheaval in the tech market, resulting in a $1 trillion sell-off among global tech stocks. Investors are increasingly concerned that DeepSeek's low-cost AI developments undermine the competitive edge of established Silicon Valley companies, leading to skepticism about the sustainability of their current valuations. Notably, NVIDIA experienced a staggering 17% drop in stock price, wiping out $589 billion from its market capitalization, sparking a wider reevaluation of capital expenditures and profitability across the tech sector. Experts suggest that firms must now justify their valuations and adapt to a rapidly changing landscape dominated by innovative competitors like DeepSeek.

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