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Speaker 1: So we've got US companies reporting their results. Last week,

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Speaker 1: we've got covered Microsoft, we covered Mesa. Since then, we've

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Speaker 1: had both Apple and Google. Stephanie Bachelor from Meal find

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Speaker 1: asset managements with me. Hey, Stephanie Hi, Ryan Steff. Starting

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Speaker 1: with Google, China has started an anti trust investigation. Tell

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Speaker 1: us what is that about? What's going on?

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Speaker 2: Yeah, so last night China retaliated to Trump's tariffs by

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Speaker 2: saying that they would put levies on some US goods,

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Speaker 2: but they also announced that they would investigate Google for

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Speaker 2: alleged anti trust violations. Now, Google doesn't operate any search

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Speaker 2: services in China they pulled out back in twenty ten,

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Speaker 2: but Chinese companies like Timu and Shean, for example, they

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Speaker 2: do advertise on Google to access international consumers, and Google

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Speaker 2: also provides its Android operating system to Chinese smartphone makers.

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Speaker 2: So there hasn't actually been any detail on what exactly

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Speaker 2: they're going to investigate. So at this stage, it's still

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Speaker 2: a little bit of a wait and see.

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Speaker 1: Okay. At the same time, we've had the Google's results

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Speaker 1: reported and we've seen a sell off what seven percent down?

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Speaker 2: Yeah, lots lots going on, so shares, that's right, they're

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Speaker 2: down about seven percent post the result, and it was

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Speaker 2: due to a couple of things. The advertising revenue actually

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Speaker 2: came in better than expected, so there was a very

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Speaker 2: strong retail holiday season, but the cloud revenue was slower,

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Speaker 2: grew slower than the market expected, and that's a little

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Speaker 2: bit of a concern because at the same time, they're

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Speaker 2: continuing to invest more and more in building out that

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Speaker 2: cloud infrastructure. So the market was thinking that they might

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Speaker 2: spend somewhere in the realm of sixty billion dollars next

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Speaker 2: year on this cloud capex, and the company said it

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Speaker 2: would be more like seventy five billion, So investors are

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Speaker 2: a little bit worried as to whether they'll actually be

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Speaker 2: able to generate a decent return on that investment.

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Speaker 1: Interesting, what about Apple. They've come back with results, right.

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Speaker 2: Yeah, So they reported ends last week, and the expectations

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Speaker 2: for Apple had actually fallen going into the results, so

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Speaker 2: it actually met that low, lowered bar, but it was

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Speaker 2: a little bit underwhelming and shares were down kind of

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Speaker 2: half a percent. So iPhone sales were sluggish. China sales

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Speaker 2: was still very weak, but the CEO talked up a

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Speaker 2: lot its new AI system called Apple Intelligence, which they

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Speaker 2: think has a lot of potential going forward, but I

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Speaker 2: think that the market is still a little bit skeptical

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Speaker 2: on that one.

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Speaker 1: How's Apple faring? You know? Given Trump's tariffs on China,

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Speaker 1: how's that affecting Apple? Because a lot of their stuff

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Speaker 1: that they put in their phones comes from China.

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Speaker 2: Right, Yeah, that's right. So about ninety percent of iPhones

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Speaker 2: are assembled in China, So any phones going from China

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Speaker 2: into the US would then be subject to the new

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Speaker 2: ten percent tariffs. And so when that news on the

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Speaker 2: tariff came out, shares fell three and a half percent.

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Speaker 2: But interestingly, the last time Trump put tariffs on China,

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Speaker 2: he actually gave Apple an exemption because he didn't want

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Speaker 2: to risk moving market share away from US Apple to Samsung,

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Speaker 2: which is a South Korean company, And in exchange for that,

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Speaker 2: Apple committed to manufacturing the Mac Pro domestically in the US.

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Speaker 2: So it'll be interesting to see if something similar happens

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Speaker 2: this time. But still early days on that one.

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Speaker 1: All right, stephanih wait and see, thank you very much

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Speaker 1: for that. Twenty eight minutes after six, that's Stephanie Bachelor

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Speaker 1: from Melford. For more from Heather Duplessy, Allen Drive listen

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Speaker 1: live to news talks it'd be from four pm weekdays,

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Speaker 1: or follow the podcast on iHeartRadio