| Bloomberg Evening Briefing Americas |
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| Wall Street sentiment around software stocks went from bearish to doomsday with traders dumping shares as fears pile up about the potential destruction coming via artificial intelligence. The anxiety was underscored Tuesday after AI firm Anthropic released a productivity tool for in-house lawyers, sending legal software and publishing firms tumbling. Selling pressure was evident across the sector with London Stock Exchange Group falling 13%, while Thomson Reuters plunged as much as 21%. CS Disco sank as much as 14% and Legalzoom.com declined 19%. Concerns around software aren't new: Last fall, Apollo Global Management's John Zito stunned an audience in Toronto when he said the real threat for private capital markets wasn't tariffs, inflation or a prolonged period of elevated interest rates. Rather, he said, "the real risk is—is software dead?" Months later, investors are heading for the exits. "We call it the 'SaaSpocalypse,' an apocalypse for software-as-a-service stocks," said Jeffrey Favuzza, who works on the equity trading desk at Jefferies. "Trading is very much 'get me out' style selling." And here are a few of the alternative investment firms that got hit bad as a result. —Jordan Parker Erb | |
What You Need to Know Today | |
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| Bank of America has kicked off the sale of investment-grade dollar bonds, adding to a flurry of offerings by major Wall Street banks. Said to be offered were six-year fixed- and floating-rate notes as well as an 11-year fixed-rate security. Initial price talk for the latter was a premium 1 percentage point above Treasuries. Bank of America is the last of the six big Wall Street firms to sell debt following January's release of fourth-quarter results. The group combined to offer $50.5 billion of high-grade notes last month, according to data compiled by Bloomberg, led by a record $16 billion deal from Goldman Sachs. Sales of US high-grade notes have started this year at a record pace, part of a global boom as borrowers take advantage of reduced borrowing premiums. | |
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| The European Union is set to pitch the US on a critical minerals partnership to curb China's influence. The EU is said to be prepared to sign a memorandum of understanding with the US to develop a "Strategic Partnership Roadmap" within three months. The partnership aims to jointly find ways to source critical minerals, which are needed for most modern technologies, without relying on China. Both the US and EU have become tethered to abundant, cheap Chinese minerals, giving Beijing leverage over their supply chains. As part of its push, the US pressed some EU member states to sign bilateral deals. In response, the European Commission asked the bloc's countries to stick together, and EU capitals gave the commission a mandate to negotiate an agreement. | |
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 Josh D'Amaro Source: Image Group LA/Disney General Entertainment Con Disney said Josh D'Amaro will succeed Bob Iger as chief executive, passing the reins at a key moment as the company transitions from traditional TV viewing to the streaming era. Park chief D'Amaro, a 28-year-veteran of Disney, will succeed Iger effective March 18, the company said Tuesday. Iger will stay on the board and serve as a senior adviser until his retirement on Dec. 31. | |
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| A rally in Walmart shares pushed the retailer into the $1 trillion club for the first time ever, vaulting the big-box store into a category typically occupied by Big Tech firms such as Nvidia and Alphabet. The chain has flexed its massive scale and supplier network to keep prices low and grab market share across the income spectrum. While Walmart has maintained its appeal to households looking for value, its online offerings are drawing new, wealthier shoppers seeking convenience. | |
| The US government is preparing to issue a general license allowing companies to pump oil in Venezuela, part of the Trump administration's plan to ease sanctions and rebuild the nation's moribund energy industry following the US attack on Caracas and rendition of President Nicolas Maduro. The American strike killed about 100 people, Venezuela authorities said. The new license could be issued by the Treasury Department as soon as this week, days after the US issued a separate general license allowing companies to buy and sell Venezuelan oil. The move is a key step to attract companies with US ties to step in and revitalize output in Venezuela, which holds among the world's largest reserves. Oil majors have reacted with caution, with ExxonMobil calling the country "uninvestable." | |
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What You'll Need to Know Tomorrow | |
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| Bloomberg Invest: Join the world's most influential investors and financial leaders on March 3-4 in New York. Powered by insights from the Bloomberg Terminal and one of the largest global newsrooms, this flagship event examines how artificial intelligence disruption, geopolitical uncertainty, shifting central bank policy and the convergence of public and private markets are reshaping global finance. Don't miss sharp, forward-looking conversations with top CEOs, asset managers and industry titans in the heart of the financial district. Learn more. | |
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