WEBVTT - Apple's Earnings and Qualcomm's Upbeat Forecast 0:00:01.720 --> 0:00:05.400 From the heart where innovation, money and power Collie in 0:00:05.480 --> 0:00:10.440 Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde 0:00:10.440 --> 0:00:11.360 and Ed Ludlow. 0:00:25.320 --> 0:00:27.440 I'm Caroline Heinder Bloomberg's weltad quarters in New. 0:00:27.440 --> 0:00:29.880 York, and I'm Ed Ludlow in San Francisco. This is 0:00:29.880 --> 0:00:30.960 Bloomberg Technology. 0:00:31.000 --> 0:00:33.200 Coming up. We push our head to Apple's results after 0:00:33.200 --> 0:00:33.520 the bell. 0:00:33.720 --> 0:00:36.800 This is investors anxiously await iPhone sales numbers. 0:00:37.600 --> 0:00:37.680 US. 0:00:37.800 --> 0:00:39.920 We'll sit down with the CEO of qualcom Is the 0:00:40.000 --> 0:00:42.560 chip maker, offers an upbeat forecast. 0:00:42.640 --> 0:00:45.600 And the CFO of door Dash joins us to run 0:00:45.640 --> 0:00:47.000 through the company's latest results. 0:00:47.040 --> 0:00:48.760 All that and so much more coming up. 0:00:49.040 --> 0:00:52.960 There is a wealth of micro data of company news today. 0:00:52.680 --> 0:00:53.800 That we're going to be digging into. 0:00:53.920 --> 0:00:55.800 Not to mention New York based Peloton, but I'm looking 0:00:55.840 --> 0:00:57.640 at what's happening on a broad index today. 0:00:57.760 --> 0:00:57.800 Ed. 0:00:58.160 --> 0:01:00.000 We're seeing the nasdak cup seven tenths of a percent 0:01:00.200 --> 0:01:03.400 post the FED. We're relieved that we're not going to 0:01:03.440 --> 0:01:06.720 see rate hikes coming, but certainly still no signal over 0:01:06.760 --> 0:01:09.080 those rate cuts as we still see a resilient US 0:01:09.400 --> 0:01:13.000 overall jobs picture, which we get the detail of come Friday. 0:01:13.080 --> 0:01:13.920 Yes there's a calling. 0:01:13.959 --> 0:01:17.640 Maybe the slowest increase in jobs since November, but still resilient. 0:01:17.720 --> 0:01:20.560 We're seeing a ten year yield just down one basis point. 0:01:20.600 --> 0:01:22.440 A little bit of movement into the mode market on 0:01:22.480 --> 0:01:24.880 the day post fed as we anticipate the jobs data 0:01:24.880 --> 0:01:27.840 and Bluemberg dollar index actually weaker as we see a 0:01:27.880 --> 0:01:30.039 little bit of a relief there. We're down by four 0:01:30.120 --> 0:01:32.760 tenths of a percent. What therefore is bitcoin doing the 0:01:32.840 --> 0:01:34.760 versus the US dollar. Let's move it on and have 0:01:34.800 --> 0:01:36.880 a little look that we're up three percent, so a 0:01:36.880 --> 0:01:39.040 little bit of a risk on kind of a trade today, 0:01:39.160 --> 0:01:41.600 but still sub that sixty thousand dollars level. But ed, 0:01:41.600 --> 0:01:43.360 what are you watching on this corporate news front? 0:01:44.160 --> 0:01:47.520 Let's start with Peloton, an absolutely wild morning session in 0:01:47.560 --> 0:01:50.400 the market. So far CEO Barry McCarthy is going to 0:01:50.440 --> 0:01:53.040 step down the board. We'll find a new CEO. Fifteen 0:01:53.080 --> 0:01:56.000 percent of global headcount going to be cut. The story overall, 0:01:56.040 --> 0:01:58.320 things are not getting better for Peloton. Look at the 0:01:58.400 --> 0:02:01.120 chart two day chart to illustrate the point that when 0:02:01.160 --> 0:02:03.800 the market opened there was a session high of eighteen 0:02:03.880 --> 0:02:07.640 percent cheering. What is another restructuring and yet we're now 0:02:07.720 --> 0:02:10.720 down more than ten percent. Having had some time to 0:02:10.800 --> 0:02:14.079 basically look at what Peloton's saying and on the hardware 0:02:14.120 --> 0:02:16.560 side of their business, the multi channel sales side of 0:02:16.600 --> 0:02:19.000 their business, and then subscriptions, things are not going to 0:02:19.040 --> 0:02:20.480 be as good by the end of the year as 0:02:20.520 --> 0:02:22.000 perhaps they had hoped, the. 0:02:22.000 --> 0:02:22.639 Market had hoped. 0:02:22.639 --> 0:02:24.320 We're gonna get deep on that later in the show 0:02:24.360 --> 0:02:27.240 were Bloombos Mark German, but that is just a real 0:02:27.320 --> 0:02:30.600 ride that stocked this morning. The earning story is elsewhere 0:02:30.600 --> 0:02:33.680 as well. Quill Calm up almost ten percent. The smartphone 0:02:33.680 --> 0:02:35.640 market seems to be recovering. There's going to be a 0:02:35.639 --> 0:02:38.040 lot to talk about with CEO Christiano and on later 0:02:38.080 --> 0:02:40.560 in the program in the context of AI and also 0:02:40.600 --> 0:02:43.560 what's happening in China and then door Dash. This is 0:02:43.600 --> 0:02:45.800 a tail as old as not time, but the history 0:02:45.840 --> 0:02:49.399 of gig economy companies investors looking at ebit dar forecast 0:02:49.440 --> 0:02:52.840 and wondering what's going on the relationship between at Basic 0:02:52.840 --> 0:02:56.040 gig platforms and ebit dar is something we've talked about 0:02:56.080 --> 0:02:58.639 a lot. The concern is like are they investing too much? 0:02:58.680 --> 0:03:00.840 What's going on the bottom line, It's the US's biggest 0:03:00.840 --> 0:03:05.440 delivery platform, mid single digit growth team growth in the 0:03:05.440 --> 0:03:07.760 second quarter. Let's find out what's going on with that one, Caroline. 0:03:07.800 --> 0:03:10.960 Yeah, because we did actually see strong numbers for fiscal 0:03:11.000 --> 0:03:13.560 first quarter revenue on the higher side, but it was 0:03:13.600 --> 0:03:16.799 this worry about the forecast that is setting the shares lower. 0:03:16.840 --> 0:03:19.240 DoorDash CFO the perfect person to speak to about it, 0:03:19.320 --> 0:03:21.600 Rabbi in Conda. Thank you very much indeed for joining us, 0:03:21.639 --> 0:03:25.360 Rabbi and just talk to us about why this restrained 0:03:25.960 --> 0:03:29.440 outlook for adjusted a bit dark come the second quarter. 0:03:29.280 --> 0:03:31.240 And why then the ramp in the second half. 0:03:32.560 --> 0:03:36.000 Good morning, Carolina, thanks for having me this morning. Q 0:03:36.160 --> 0:03:38.520 one was a very strong quarter for US across the board. 0:03:38.840 --> 0:03:41.000 If you look at the results, demand on the platform 0:03:41.040 --> 0:03:44.320 continues to be very strong. All time highs in terms 0:03:44.400 --> 0:03:47.280 of users, all time high in terms of subscribers, all 0:03:47.320 --> 0:03:50.080 time high in terms of order frequency. In Q one, 0:03:50.160 --> 0:03:53.520 we fulfilled more orders than ever before in our history. Honestly, 0:03:53.520 --> 0:03:55.440 you've been one of the strongest quarters since I've been 0:03:55.440 --> 0:03:58.400 here for the last six years. When I look at 0:03:58.400 --> 0:04:01.760 the underlying demand on the platform, it really is very good. 0:04:02.080 --> 0:04:04.760 We're not seeing weakness on the consumer side, whether it's 0:04:04.800 --> 0:04:07.200 you know, low income or high income, or the East 0:04:07.200 --> 0:04:11.280 Coast or the west. Goal, we're team trend across all markets. 0:04:11.600 --> 0:04:14.400 We operate in thirty countries across all life of business, 0:04:14.920 --> 0:04:17.920 and at the same time, we posted the lowest netlots 0:04:17.960 --> 0:04:20.760 in our history, which is being aided by the highest 0:04:20.800 --> 0:04:23.960 adjuctity bite in our history. Overall, the business continues to 0:04:24.000 --> 0:04:26.280 do really well, and I'm excited about not just the 0:04:26.360 --> 0:04:28.400 Q one results, but they're going forward Q two as 0:04:28.400 --> 0:04:29.520 well as the rest of twenty four. 0:04:30.240 --> 0:04:33.480 So did you get frustrated when the shares full because 0:04:33.520 --> 0:04:36.560 the market wanted to see more in terms of profitability 0:04:36.600 --> 0:04:37.360 for the forecast. 0:04:38.640 --> 0:04:40.919 Our goal has always been to continue to build the 0:04:40.920 --> 0:04:43.480 best product possible, and you're seeing that in our results. 0:04:44.200 --> 0:04:46.360 Users, Like I said, I've been in an all time high. 0:04:46.800 --> 0:04:49.760 We ended twenty three with over thirty seven million consumers 0:04:49.760 --> 0:04:52.400 and that number continues to grow considerably since that point. 0:04:52.880 --> 0:04:55.839 We're not seeing any weakness, whether it's the large, you know, 0:04:55.960 --> 0:04:58.520 enterprise merchants on the platform or the local merchants on 0:04:58.560 --> 0:05:02.560 the platform. You're seeing wrong double digits scapes, stores, sales 0:05:02.600 --> 0:05:06.120 growth across the world. Our grocery business is growing at 0:05:06.160 --> 0:05:07.920 one hundred percent year on ear for the third straight 0:05:08.040 --> 0:05:10.320 quarter in a row. Our goal will continue to be 0:05:10.360 --> 0:05:14.520 to build the best product possible that consider all three 0:05:14.560 --> 0:05:17.680 sides of the audience, whether it's consumers, merchants or adaptors. 0:05:18.440 --> 0:05:21.280 Robbie, I'm building the best product possible. It's easier way 0:05:21.279 --> 0:05:24.279 in on the adjusteday with the forecast. There's some sense 0:05:24.279 --> 0:05:27.360 that you're investing in specific areas and that might be 0:05:27.440 --> 0:05:31.680 impacting the bottom line. Right you're investing at the technology layer. 0:05:32.360 --> 0:05:34.359 What are you doing and what's the goal there? 0:05:35.279 --> 0:05:35.479 Yeah? 0:05:35.520 --> 0:05:38.000 In Q one, you know, one of the key things 0:05:38.000 --> 0:05:40.360 that impacted the overall business is we did absorb some 0:05:40.400 --> 0:05:42.719 costs in New York as well as Seattle. 0:05:43.160 --> 0:05:44.040 That cost is. 0:05:44.000 --> 0:05:46.200 Going to continue to reduce as we go through the 0:05:46.279 --> 0:05:48.480 rest of the year, as we make the business more efficient, 0:05:48.839 --> 0:05:51.280 as we consider other opportunities to consider to make. 0:05:51.200 --> 0:05:52.120 Those costs go down. 0:05:53.040 --> 0:05:56.520 If you recall our business, the core restaurant's business has 0:05:56.560 --> 0:05:59.800 actually been profitable for many years now. We're taking the 0:06:00.120 --> 0:06:02.760 it's from that business and building two new businesses, grocery 0:06:02.800 --> 0:06:06.599 as well as international, both of which are growing extremely fast. 0:06:07.080 --> 0:06:10.479 They're growing faster than our restaurant's business. At the same time, 0:06:10.560 --> 0:06:13.760 the profitability of both of those businesses is going up. 0:06:14.200 --> 0:06:16.760 If you look at our new verticals business, the third 0:06:16.760 --> 0:06:19.719 party component of it has been gross profit positive for 0:06:19.760 --> 0:06:22.520 a few quarters now. Same is the case with international, 0:06:22.560 --> 0:06:26.920 where many countries the restaurant business is actually contribution margin positive. 0:06:27.320 --> 0:06:31.240 So overall the restaurant business profitability is improving. Our new 0:06:31.320 --> 0:06:34.240 vehicles as well as international is also improving in profitability. 0:06:36.200 --> 0:06:38.880 Just really quick. You mentioned Seattle in New York. There's 0:06:38.880 --> 0:06:42.640 a kind of idiosyncratic factors in the quarter. Just explain 0:06:42.720 --> 0:06:45.120 the basics to audience of what happened there. On the 0:06:45.120 --> 0:06:47.320 policy front, Yeah, on the. 0:06:47.279 --> 0:06:49.800 Policy, if I look up, our goal is always to 0:06:49.839 --> 0:06:53.839 work with policymakers and regulators. We do that in over 0:06:53.960 --> 0:06:58.280 hundreds of cities across thirty different countries to ensure we're 0:06:58.320 --> 0:07:02.640 protecting the flexibility and accessibility the doctors and couriers across. 0:07:02.400 --> 0:07:05.960 The globe we're asking for. I just HELFU are. 0:07:05.880 --> 0:07:08.160 Honestly like extreme examples of that regulation. 0:07:08.920 --> 0:07:10.240 We've taken some action to. 0:07:10.280 --> 0:07:12.600 Change the way in which we operate. We're making the 0:07:12.640 --> 0:07:16.000 business more efficient, and our goal is to continue to 0:07:16.000 --> 0:07:17.200 work with policymakers in. 0:07:17.160 --> 0:07:21.800 That regard, Let's just get details on operating profits. You 0:07:21.880 --> 0:07:24.640 say they'll come in the near future. The market expects 0:07:24.640 --> 0:07:26.680 the third quarter, are they right to expect that? 0:07:27.880 --> 0:07:29.840 Look, I mean, our gap net loss is the lowest 0:07:29.840 --> 0:07:32.320 in our history. What you're seeing in the business is 0:07:32.800 --> 0:07:36.520 the growth is strong. Profitability across all lines of business 0:07:36.560 --> 0:07:40.360 is improving. I do expect the trend to continue. And 0:07:40.400 --> 0:07:43.080 if that trend continues on both the growth as well 0:07:43.080 --> 0:07:45.680 as the profitability, the overall business is going to be 0:07:45.720 --> 0:07:46.400 gap positive. 0:07:46.720 --> 0:07:48.000 It's just a question of time. 0:07:48.440 --> 0:07:50.880 Our free cap flow has been very strong. If you 0:07:50.920 --> 0:07:53.160 look at the quarter, we've generated roughly about half a 0:07:53.200 --> 0:07:56.040 billion dollars of free cash flow. And that's truly our 0:07:56.080 --> 0:07:59.680 north star in being able to rabas in the business. 0:08:00.040 --> 0:08:03.400 Robbi real quick, what are the specific consumer habits, the 0:08:03.440 --> 0:08:07.160 size of the basket that they're doing, Lots of frequency, 0:08:07.240 --> 0:08:09.000 little spend like little things like that. 0:08:10.160 --> 0:08:12.800 Sure, what you're seeing in the business today is more 0:08:12.840 --> 0:08:16.880 consumers ordering from more categories. Historically, people thought of us 0:08:16.880 --> 0:08:20.840 purely as a restaurant delivery platform. Today are consumers roughly 0:08:20.880 --> 0:08:24.240 about twenty percent of our consumers are ordering from convenience 0:08:24.320 --> 0:08:28.760 grocery alcohol. We have increased the basket sizes across Robbi. 0:08:30.400 --> 0:08:32.080 Rabbisfi, Robbi and a condo. 0:08:32.160 --> 0:08:32.559 We've got to go. 0:08:32.760 --> 0:08:33.000 Thank you. 0:08:33.120 --> 0:08:33.440 Caron. 0:08:33.840 --> 0:08:36.200 Yeah, if we have some breaking news, let's go to 0:08:36.280 --> 0:08:38.600 the President Biden delivering remarks right now. 0:08:39.360 --> 0:08:42.840 The first is the right to free speech and for 0:08:42.960 --> 0:08:46.480 people to peacefully assemble and make their voices heard. The 0:08:46.559 --> 0:08:51.000 second is the rule of law. Both must be upheld. 0:08:51.960 --> 0:08:55.040 We are not an authoritarian nation where we silence people 0:08:55.120 --> 0:09:00.720 or squash descent American people are heard. In fact, protests 0:09:00.760 --> 0:09:04.080 is in the best tradition of how Americans respond to 0:09:04.120 --> 0:09:10.520 consequential issues. But neither are we a lawless country. We 0:09:10.559 --> 0:09:15.320 are a civil society. An order must prevail. Throughout our history. 0:09:15.360 --> 0:09:18.760 We've often faced moments like this because we are a big, diverse, 0:09:19.280 --> 0:09:23.240 free thinking and freedom loving nation, and moments like this 0:09:23.760 --> 0:09:27.199 there are always those who rush in to score political points. 0:09:27.960 --> 0:09:30.720 But this isn't a moment for politics. It's a moment 0:09:30.760 --> 0:09:35.479 for clarity. So let me be clear. Peaceful protest in America. 0:09:36.320 --> 0:09:41.320 Violent protest is not protected. Peaceful protest is. It's against 0:09:41.360 --> 0:09:45.920 the law, violence occurs, Destroying property is not a peaceful protest. 0:09:46.320 --> 0:09:47.319 It's against the law. 0:09:48.280 --> 0:09:53.520 Vandalism, trespassing, breaking windows, shutting down campuses, forcing the cancelation 0:09:53.600 --> 0:09:57.720 of classes and graduations. None of this is a peaceful protest. 0:09:58.400 --> 0:10:03.680 Threatening people, instilling, firing people is not peaceful protest. 0:10:04.000 --> 0:10:05.240 It's against the law. 0:10:06.040 --> 0:10:09.640 Descent is essential to democracy, but descent must never lead 0:10:09.679 --> 0:10:12.240 to disorder or to denying the rights of others, so 0:10:12.320 --> 0:10:16.680 students can finish the semester and their college education. Look, 0:10:17.520 --> 0:10:20.120 it's basically a matter of fairness. It's a matter of 0:10:20.200 --> 0:10:24.040 what's right. There's the right to protest, but not the 0:10:24.120 --> 0:10:27.040 right to cause chaos. People have the right to get 0:10:27.040 --> 0:10:30.760 an education, the right to get a degree, the right 0:10:30.840 --> 0:10:34.000 to walk across the campus safely without fear of being attacked. 0:10:34.840 --> 0:10:37.960 But let's be clear about this as well. There should 0:10:37.960 --> 0:10:41.559 be no place in any campus, no place in America 0:10:41.880 --> 0:10:45.560 for anti semitism or threats of violence against Jewish students. 0:10:46.400 --> 0:10:49.480 There is no place for hate speech or violence of 0:10:49.520 --> 0:10:54.280 any kind, whether it's anti Semitism, Islamophobia, or discrimination against 0:10:54.360 --> 0:10:58.480 Arab Americans or Palestinian Americans. It's simply wrong. There's no 0:10:58.720 --> 0:11:02.680 place for racism in America. It's all wrong. It's not American. 0:11:03.600 --> 0:11:07.720 I understand people have strong feelings and deep convictions in America. 0:11:08.120 --> 0:11:11.319 We respect the right and protect the right for them 0:11:11.360 --> 0:11:15.920 to express that. But it doesn't mean anything goes. It 0:11:15.960 --> 0:11:20.200 needs to be done without violence, without destruction, without hate, 0:11:20.800 --> 0:11:24.560 and within the law. You know, I'll make no mistake 0:11:25.240 --> 0:11:28.280 as president. I will always defend free speech and I 0:11:28.280 --> 0:11:30.480 will always be just as strong as standing up for 0:11:30.520 --> 0:11:34.200 the rule of law. That's my responsibility to you, the 0:11:34.200 --> 0:11:37.560 American people, and my obligation of the Constitution. 0:11:38.440 --> 0:11:39.440 Thank you very much. 0:11:40.880 --> 0:11:44.520 The protest forced you to be consider any of the 0:11:44.520 --> 0:11:46.240 policies in regard to the region. 0:11:46.679 --> 0:11:47.719 No, thank you. 0:11:48.320 --> 0:11:49.400 Do you think the national. 0:11:54.760 --> 0:11:58.839 President might delivering remarks at the White House regarding protests 0:11:58.840 --> 0:12:02.280 student protests that's bring in Bluemug's Kaye lines for more 0:12:02.440 --> 0:12:07.680 and against violence and destruction, but well full peaceful protest. 0:12:09.320 --> 0:12:11.720 Yeah, the President making it clear that he does stand 0:12:11.720 --> 0:12:14.640 by Americans' right to free speech and that that should 0:12:14.679 --> 0:12:17.680 not be interfered with. But yes, Caroline, essentially that it 0:12:17.679 --> 0:12:20.400 should be done peacefully. The President, and making these remarks 0:12:20.600 --> 0:12:22.960 in the Roosevelt Room, said descent must never lead to 0:12:23.000 --> 0:12:26.520 disorder or denial of rights, that the right to protest 0:12:26.559 --> 0:12:29.400 does not mean the right to cause chaos, going on 0:12:29.480 --> 0:12:32.160 to say that there is no place for anti Semitism 0:12:32.520 --> 0:12:35.640 in America. He makes these remarks as he is facing 0:12:35.679 --> 0:12:38.280 growing pressure to address what we're seeing happening on college 0:12:38.320 --> 0:12:41.720 campuses across the country, from Columbia University to the West Coast, 0:12:41.920 --> 0:12:44.600 with what we've seen at UCLA in the wee hours 0:12:44.679 --> 0:12:47.240 this morning. All of it just speaking to the pressure 0:12:47.240 --> 0:12:49.200 that he is under as he is trying to stand 0:12:49.200 --> 0:12:51.720 by Israel as an ally, but there is growing concern 0:12:51.720 --> 0:12:54.000 about the way Israel is conducting itself in its war 0:12:54.040 --> 0:12:56.640 against a moss in Gaza. We just heard there the 0:12:56.640 --> 0:12:59.360 President being asked by a reporter whether or not this 0:12:59.400 --> 0:13:02.240 has all made him rethink his policy on Israel. 0:13:02.360 --> 0:13:03.000 He said no. 0:13:03.120 --> 0:13:04.960 He also said no to the question he was asked 0:13:04.960 --> 0:13:08.160 about whether the National Guard should be interfering in these 0:13:08.200 --> 0:13:10.840 instances on the college campuses. He said no to that 0:13:10.960 --> 0:13:12.640 as well. I would also point out we will be 0:13:12.720 --> 0:13:15.520 hearing from President Biden on the issue of anti Semitism 0:13:15.800 --> 0:13:18.840 again next week on Tuesday, May seventh. He is planning 0:13:18.840 --> 0:13:21.679 to speak at the Capital as part of the National 0:13:21.720 --> 0:13:29.000 Holocaust Remembrance ceremony that will be happening on that date. 0:13:29.040 --> 0:13:30.800 We heard from the White House Press Secretary of Karee 0:13:30.920 --> 0:13:33.240 John Pierre yesterday who said the President will discuss the 0:13:33.320 --> 0:13:37.239 moral duty to combat the rising scores of anti Semitism 0:13:37.240 --> 0:13:39.559 and the administration's work on that issue. Of course, we 0:13:39.640 --> 0:13:41.960 probably got a preview of some of what he will 0:13:42.080 --> 0:13:44.200 likely say when we just heard him speak today. 0:13:45.000 --> 0:13:47.559 Bloom bells Ka lines, thank you for the context on that. 0:13:47.720 --> 0:13:51.320 It's interesting because we've been talking about protests at different 0:13:51.400 --> 0:13:54.400 university campuses across the country and indeed across the world 0:13:55.040 --> 0:13:59.320 for several days at least. Now, what was the politics 0:13:59.320 --> 0:14:01.959 of this with the president, but what was the pressure 0:14:01.960 --> 0:14:04.840 on the hill and the conversation about whether or not 0:14:04.880 --> 0:14:07.440 Biden would come out and say anything, and the timing 0:14:07.480 --> 0:14:07.760 of it. 0:14:09.120 --> 0:14:12.199 Well, we had heard President Biden speak on this before, 0:14:12.520 --> 0:14:15.520 saying that he condemns anti Semitism, although he also had 0:14:16.000 --> 0:14:18.840 suggested that people need to understand what's going on with 0:14:18.880 --> 0:14:22.400 the Palestinian people. But certainly the domestic political pressure has 0:14:22.480 --> 0:14:25.720 been growing. We have seen specifically Republican members of Congress 0:14:25.760 --> 0:14:28.600 really taking hold of this issue. We have seen the 0:14:28.600 --> 0:14:31.400 House Speaker Mike Johnson, together with other Republican members of 0:14:31.400 --> 0:14:34.080 the New York delegation actually going to the campus of 0:14:34.160 --> 0:14:37.760 Columbia University just last week, and just last night, the 0:14:37.800 --> 0:14:41.040 House passed by a wide bipartisan margin, a bill that 0:14:41.040 --> 0:14:44.280 would essentially help the definition of anti Semitism be applied 0:14:44.320 --> 0:14:47.400 differently with the Department of Education. There was some concern 0:14:47.440 --> 0:14:49.240 that that would become a free speech issue, that it 0:14:49.280 --> 0:14:54.000 would limit criticism of Israel or the Israeli government, for example, 0:14:54.000 --> 0:14:56.800 but it still got through with a bipartisan majority. It's 0:14:56.840 --> 0:14:58.880 unclear whether or not that will move forward in the Senate, 0:14:58.880 --> 0:15:01.600 but you are definitely seeing through the legislature efforts to 0:15:01.760 --> 0:15:05.200 combat anti Semitism. A lot of blame being cast on 0:15:05.320 --> 0:15:08.440 President Biden, whether rightly or not, for what we're seeing 0:15:08.440 --> 0:15:11.200 on college campuses, and of course he's been dealing with 0:15:11.240 --> 0:15:16.040 the political ramifications of his wider policy toward Israel consistently 0:15:16.080 --> 0:15:19.120 throughout this primary season, as we have seen actual Democratic 0:15:19.160 --> 0:15:23.360 primary voters voting against alternatives, whether it be uncommitted or 0:15:23.440 --> 0:15:26.760 something to the effect in different states like Michigan and others, 0:15:26.800 --> 0:15:29.680 to express their discontent with how the president has been 0:15:29.720 --> 0:15:31.360 handling his Israeli policy. 0:15:31.800 --> 0:15:33.160 Talking of Israeli policy. 0:15:33.360 --> 0:15:37.120 Breaking news that Turkey has indeed halted all trade with Israel. 0:15:37.200 --> 0:15:41.360 That's both exports and imports to and from Israel as 0:15:41.360 --> 0:15:44.760 of Thursday. That's according to two Turkish officials familiar with 0:15:44.800 --> 0:15:47.760 the matter. Katie Lines bringing us the latest from what 0:15:47.840 --> 0:15:50.640 the president has been saying. Meanwhile, now we want to 0:15:50.680 --> 0:15:53.960 return our attention toward is in an investor's focus right now. 0:15:53.760 --> 0:15:55.440 We are still a mid earning season. 0:15:55.440 --> 0:15:58.600 Today is Apple reporting quarterly results after the market closes 0:15:58.680 --> 0:16:01.040 later today, giving investors kind of a better sense of 0:16:01.040 --> 0:16:04.080 how the iPhone maker is weathering at sales slump. We've also, though, 0:16:04.160 --> 0:16:06.400 got to be talking about what on earth is happening 0:16:06.400 --> 0:16:09.680 over at Peloton. It's its shares slump too. Bloomberg's Mark 0:16:09.720 --> 0:16:12.160 Gum and for more on what to expect, let's just 0:16:12.240 --> 0:16:15.120 kick off with Apple because it is the huge company 0:16:15.200 --> 0:16:16.080 that many focus on. 0:16:16.120 --> 0:16:17.040 What are we lining up for? 0:16:18.360 --> 0:16:21.440 Yeah, Apple earnings? The expectation for the fifth time in 0:16:21.560 --> 0:16:24.760 six quarters, Apple is going to report an annual decline. 0:16:25.160 --> 0:16:27.760 Revenue is expected by Wall Street to come in at 0:16:27.800 --> 0:16:31.040 about ninety billion in change, which would be about a 0:16:31.080 --> 0:16:35.040 five billion dollar dip on year over year. The other 0:16:35.120 --> 0:16:38.520 thing that's not so hot here. All of Apple's product categories, 0:16:38.520 --> 0:16:44.120 so hardware categories, from the iPhone to the iPad, the Mac, wearables, AirPods, 0:16:44.440 --> 0:16:47.080 those are expected to decline on an annual basis, with 0:16:47.120 --> 0:16:51.040 the only bright spot potentially being actually some pretty significant 0:16:51.080 --> 0:16:55.240 growth in the services business. Also another decline in Greater China, 0:16:55.600 --> 0:16:58.800 right on the heels of reports from Counterpoint in IDC 0:16:58.960 --> 0:17:02.080 and others that iPhone sales in China dipped by about 0:17:02.080 --> 0:17:04.760 a fifth despite the smartphone market going up in general. 0:17:05.320 --> 0:17:08.560 So overall ninety billion in revenue. That's a big number. 0:17:08.680 --> 0:17:12.440 That's amazing for most companies, but for Apple, Wall Street 0:17:12.480 --> 0:17:13.960 probably would have liked a little bit more. 0:17:15.359 --> 0:17:18.560 Mark Hardware and Services is a pretty wild story when 0:17:18.600 --> 0:17:21.679 it comes to Peloton Bluembo technology team. Let's show the 0:17:21.720 --> 0:17:24.360 two day chart and just go back over what happened. 0:17:24.720 --> 0:17:28.120 Opened up as high as eighteen percent, is now down 0:17:28.160 --> 0:17:30.800 more than ten percent in the session. The CEO is 0:17:30.840 --> 0:17:34.320 going after two years, another headcount reduction, and I think 0:17:34.440 --> 0:17:37.280 no sign really that Peloton's got a strategy to get 0:17:37.320 --> 0:17:39.960 itself out of trouble. Give me the details. 0:17:41.160 --> 0:17:45.920 I don't think people realize how close Peloton is to bankruptcy. Right, 0:17:46.280 --> 0:17:49.520 they'll be lucky to remain on the stock market much longer. 0:17:50.080 --> 0:17:53.680 If you ask me, I'm shocked that Barry McCarthy stuck 0:17:53.720 --> 0:17:56.760 around so long. There is nothing he didn't try. There 0:17:56.840 --> 0:18:00.280 is nothing he didn't do. He's laid off several thousand people, 0:18:00.800 --> 0:18:03.480 He's moved from a hardware focus to a content and 0:18:03.560 --> 0:18:09.679 subscription focus, restructured the company multiple times, hired new executives 0:18:09.680 --> 0:18:13.760 to write the ship, outsourced pretty much everything you could outsource, 0:18:13.880 --> 0:18:18.800 from installation to shipping to manufacturing. And here we are 0:18:19.080 --> 0:18:24.560 missing Wall Street expectations, missing internal forecasts. People still not 0:18:24.640 --> 0:18:28.480 buying as many bikes and rows and different Peloton appliances 0:18:28.640 --> 0:18:32.159 as you would expect, the premium app falling flat on 0:18:32.200 --> 0:18:35.320 its face. Yes, people like their marketing chief continuing to 0:18:35.400 --> 0:18:40.640 leave Pelotons in its worshape as it's ever been. And 0:18:40.800 --> 0:18:42.560 they have no CEO running the company. 0:18:43.480 --> 0:18:46.080 Just looking at the Bloomberg terminal, and just to give 0:18:46.119 --> 0:18:49.160 some specifics, the stock is at a record low. They 0:18:49.280 --> 0:18:51.880 ended the quarter with about seven hundred million dollars seven 0:18:51.920 --> 0:18:54.160 hundred and thirty seven million dollars of cash, and they 0:18:54.160 --> 0:18:58.440 did say that because of the headcut count reduction, they'll 0:18:58.440 --> 0:19:01.040 say about two hundred million dollars a year and cash 0:19:01.040 --> 0:19:04.360 flow positivity is possible by the fourth quarter. But as 0:19:04.400 --> 0:19:06.919 you outline, Mark, the situation of Peloton, which is a 0:19:06.920 --> 0:19:10.800 company way off its pandemic era high, is pretty bleak. 0:19:10.840 --> 0:19:13.280 Bloombo's Mark German. Stay tuned for his reporting on a 0:19:13.320 --> 0:19:16.160 Apple as well after the belt. Now coming up, chip 0:19:16.160 --> 0:19:18.400 maker Quial com up with earnings in a strong forecast. 0:19:18.400 --> 0:19:20.880 There's a lot to talk about with CEO Christiano Ramon 0:19:21.200 --> 0:19:24.879 about the AI smartphone and the AIPC. That conversation is 0:19:24.920 --> 0:19:33.960 coming up. This is Bloomberg Technology. 0:19:36.800 --> 0:19:38.040 Time now for talking tech. 0:19:38.160 --> 0:19:41.560 First up, video game publisher Take too Interactive and plans 0:19:41.560 --> 0:19:43.960 to shut down two subsidiaries as part of a mass 0:19:44.000 --> 0:19:46.360 layoff across its divisions over in London and Seattle. 0:19:46.560 --> 0:19:48.800 That's according to documents review by Bloomberg Now. 0:19:48.920 --> 0:19:50.880 Last month, Take two said it would lay off five 0:19:50.920 --> 0:19:51.800 percent of its staff. 0:19:52.000 --> 0:19:55.120 That's around six hundred workers. Meanwhile, let's take a look 0:19:55.119 --> 0:19:57.520 at Starlink, as it's still operating. 0:19:57.080 --> 0:20:00.600 In multiple unauthorized regions even after the company issued warnings 0:20:00.640 --> 0:20:03.840 last month that its satellite internet will be shut down by. 0:20:03.720 --> 0:20:05.160 May first in those areas. 0:20:05.520 --> 0:20:09.040 These notices come after a March investigation by bloombag News, 0:20:09.240 --> 0:20:12.960 which first revealed the extent which Musk's satellites are being 0:20:13.080 --> 0:20:15.920 used in countries where it is illegal to operate, including 0:20:16.000 --> 0:20:20.679 in territories ruled by repressive regimes. And regulators moved to 0:20:20.760 --> 0:20:23.639 bar a Huawei lab from approving telecom gear. 0:20:23.560 --> 0:20:24.679 For use in the United States. 0:20:24.880 --> 0:20:28.400 Now it's a proposed similar moves now against other providers 0:20:28.400 --> 0:20:31.800 deemed a national security threat, including several Chinese companies. The 0:20:31.920 --> 0:20:35.040 SEC says this will ensure that these non government labs 0:20:35.080 --> 0:20:38.880 aren't quote influenced by untrustworthy actors. 0:20:39.320 --> 0:20:40.480 And we've got more Hunhuawei. 0:20:41.080 --> 0:20:44.359 This is another big Bloomberg story. Chinese seller communication as 0:20:44.400 --> 0:20:50.400 giant Huawei is secretly funding cutting edge research at American universities, 0:20:50.600 --> 0:20:56.080 including Harvard, through an independent Washington based foundation. Here with 0:20:56.280 --> 0:20:59.720 the scoop is Bloomberg's k O'Keeffe in Kate. At the 0:20:59.760 --> 0:21:03.080