Speaker 1: Bloomberg Audio Studios, podcasts, radio news. It is the Bloomberg
Speaker 1: Dabacurate podcast, available every morning on Apple, Spotify or wherever
Speaker 1: you listen. It's Wednesday, the twenty fourth of July. Here
Speaker 1: in London. I'm Caroline Hepke. Coming up today. Tesla prophet
Speaker 1: falls short again as Musk demands investor patients and kicks
Speaker 1: plans for a Robotaxi down the road. BNP Pariyberg cashes
Speaker 1: in on French election on certainty as European banks report
Speaker 1: earnings plus. Kamala Harris hits the campaign trail for the
Speaker 1: first time as the presumptive Democratic nominee, with fresh polls
Speaker 1: showing her closing in on Trump. Let's start with a
Speaker 1: round up of our top stories. Tesla shares have fallen
Speaker 1: after the ev maker reported a fourth quarter in a
Speaker 1: row of disappointing profits. The company's operating income was one
Speaker 1: point six billion dollars compared to the estimates of one
Speaker 1: point eight billion. The electric vehicle giant also admitted that
Speaker 1: it won't unveil a highly anticipated Robotaxi until October, and
Speaker 1: that will only be a prototype during the earning school.
Speaker 1: CEO Elon Musk discussed the delay.
Speaker 2: I wanted to make some important changes that I think
Speaker 2: would improve the sort of the robot taxi. I think
Speaker 2: that I think that were the main thing that we're
Speaker 2: going to show, and we're also going to show up
Speaker 2: a couple of other things.
Speaker 1: Musk's company is far off the pace of one point
Speaker 1: eight million cars that it sold last year, and warned
Speaker 1: for a second time that it expects to see a
Speaker 1: notably lower growth rate in twenty twenty four. Tesla Scheer
Speaker 1: has fell eight percent in extended New York trading, eating
Speaker 1: into the stock's recent rally but not fully erasing it. Meanwhile,
Speaker 1: Google parent Alphabet is reporting second quarter revenue that beat
Speaker 1: analysts expectations. The results were boosted by demand for cloud
Speaker 1: computing services and search advertising, but YouTube missed sales estimates.
Speaker 1: We got reaction from Bloomberg Technologies ed Ludlow.
Speaker 3: This was the first quarter where cloud revenues exceeded ten
Speaker 3: billion dollars, but also for the first time they kind
Speaker 3: of had more to show around artificial intelligence, all the
Speaker 3: investment and work in that field. The way that Ruth
Speaker 3: Parrott described it on the call with me was that, look,
Speaker 3: it's AI infrastructure solutions and generative AI. They're meaningful drivers
Speaker 3: of growth for the cloud business, and on the analyst call,
Speaker 3: she kind of expanded and gave an almost granular kind
Speaker 3: of run rate figure, which was that year to date
Speaker 3: the company's generating billions of dollars in the context of
Speaker 3: cloud from generative AI and AI infrastructure.
Speaker 1: Ed Ludlow speaking there well, second quarter sales were seventy
Speaker 1: one point four billion dollars, just ahead of an estimate
Speaker 1: of seventy point seven billion. Alphabet shares fluctuated in extended trading.
Speaker 1: The stock has gained thirty percent so far this year,
Speaker 1: and consumer giant LVMH has reported muted sales for the
Speaker 1: last quarter in big news here in Europe. The results
Speaker 1: come amidst a luxury spending slump in China Bloomberg's Tea
Speaker 1: where Adebayo has more.
Speaker 4: Its brands include the likes of Louis Vuitton Fendi, but
Speaker 4: household names weren't enough to bolster the sales at LVMH
Speaker 4: last quarter. Wealthy customers reigned in spending, resulting in a
Speaker 4: one percent rise in organic revenue from the fashion and
Speaker 4: leather goods unit. That's just half the gain analyst expected
Speaker 4: bond was coolest in China, which saw sales tumble fourteen
Speaker 4: percent during the quarter, although the slump was partially offset
Speaker 4: by strong spending from Chinese travelers overseas. Savvy shoppers from
Speaker 4: the country took advantage of the week yen, prompting a
Speaker 4: fifty seven percent increase in Japanese sales, but LVMH's CFO
Speaker 4: says the practice is hurting their margins. In London, to
Speaker 4: add a bio Bloomberg.
Speaker 1: Radio now, BNP Pariber has beaten estimates with net income
Speaker 1: of three point four billion euros in the second quarter.
Speaker 1: The French bank's results showed profit of four hundred and
Speaker 1: fifty million euros, higher than estimates on surging equities trading revenues,
Speaker 1: giving a boost to the CEO's plan to raise profitability.
Speaker 1: BNP Pariber's CFO, Lars Marschanil says that there has been
Speaker 1: election volatility across Europe.
Speaker 5: There was all that uncertainty that all of a sudden
Speaker 5: started to crystallize out. Yeah, so you saw these evolutions.
Speaker 5: You saw that what we had in the UK, you
Speaker 5: saw it in France, you saw it in Belgium, you
Speaker 5: saw it in many of those countries. And yes, there
Speaker 5: was some overall European volatility related to the elections that
Speaker 5: were going on all over the place.
Speaker 1: NP Pariba, CFO Lars Maschil now BNP Pariber. The share
Speaker 1: price for the lender is down about ten percent since
Speaker 1: these snap French elections were called in and more breaking
Speaker 1: news out of Europe today. Santander beat profit expectations in
Speaker 1: the second quarter, even as net interest income slowed. Spain's
Speaker 1: largest lender posted a profit of three point two billion
Speaker 1: euros compared to the three point one to three billion
Speaker 1: estimated by analysts, but a surge in interest income over
Speaker 1: the last year and a half is now slowing as
Speaker 1: central banks turn attention to rate cuts. Santander, of course,
Speaker 1: overtook BNP parry Bat earlier this year to become the
Speaker 1: European Union's most valuable bank on the back of record
Speaker 1: profits and increased plans to return capital to investors. And
Speaker 1: one more, of course, Deutsche Bank, which has reported second
Speaker 1: quarter earnings that have come in below expectations. The German
Speaker 1: lender reported a pre tax profit of four hundred and
Speaker 1: eleven euros versus an estimate of close to four hundred
Speaker 1: and ninety million euros. Fixed income trading revenue slightly below
Speaker 1: the estimate two point one billion versus an estimate of
Speaker 1: two point one five. CEO Christian Saving says in a
Speaker 1: statement that the bank is on track to meet its
Speaker 1: twenty twenty five goals and distribution commitments to shareholders. So
Speaker 1: that from Deutsche Bank. Okay, So that's all of the earnings.
Speaker 1: A quick moment to think about politics. Presidential hopeful Kamala
Speaker 1: Harris is vowing to present her political record against rival
Speaker 1: Donald Trump. Speaking to her first campaign rally in the
Speaker 1: swing state of Wisconsin, the Vice president sought to draw
Speaker 1: a stark contrast between their agendas.
Speaker 4: Do we want to live in a country of freedom, compassion,
Speaker 4: and rule of law.
Speaker 6: Or a country of chaos, fear and hate.
Speaker 1: Vice President Kamala Harris speaking they're at an event in Milwaukee.
Speaker 1: The lightly Democratic nominee also promised to focus on healthcare
Speaker 1: and childcare if elected, stating that building up the middle
Speaker 1: class would be a defining goal. Meanwhile, the Trump campaign
Speaker 1: has complained to the Federal Election Commission that the transfer
Speaker 1: of Joe Biden's ninety six million dollars in campaign funding
Speaker 1: to Kamala Harris is unlawful. Here in the UK. Meanwhile,
Speaker 1: Kis Starmer has suspended seven of his own MPs for
Speaker 1: rebelling on a key vote. It comes as the new
Speaker 1: UK Prime Minister met one hundred and fifty business leaders
Speaker 1: to promise stability and called for a new partnership with
Speaker 1: the private sector. Bloomberg's James Orcock has more.
Speaker 6: Kis Starmer suspended seven of his own MPs for daring
Speaker 6: to vote against the new government last night. It's a
Speaker 6: ruthless move designed to send a firm signal to his
Speaker 6: party rebellion, especially from the left, will not be tolerated.
Speaker 6: The decision also showcases Starmer's large majority. A less powerful
Speaker 6: prime minister would have needed those votes. But it remains
Speaker 6: to be seen if the PEO will end the issue,
Speaker 6: or so the seeds of further internal disagreements to come
Speaker 6: in London. James Wilcock, Bloomberg Radio.
Speaker 1: Let's get some more then, on Tesla, which reported another
Speaker 1: quarter of uninspiring profits. Shares in the EV maker dropped
Speaker 1: eight percent after market. Elon Musk did give us a
Speaker 1: date though, on when the Robotaxi would be unveiled. Let's
Speaker 1: get more now. With Bloomberg's ev supply chain reporter Danny Lee,
Speaker 1: who joins me, Good morning, Danny.
Speaker 7: Good morning Caroline.
Speaker 1: What were we expecting and why was it such a
Speaker 1: big disappointment? What happened with these results?
Speaker 7: I think the biggest disappointment is around the product lineup
Speaker 7: of the future, which we see officially being kicked back
Speaker 7: a little bit, both on the robotaxi and a bit
Speaker 7: more specificity on the more affordable ev that Tesla has
Speaker 7: been touting, which will be produced and sold in the
Speaker 7: first half of twenty twenty five. So it's a little
Speaker 7: bit further than what Tesla had been guiding towards initially.
Speaker 7: But the frustration clearly is all around the earnings at
Speaker 7: the moment, the fourth straight earnings decline in a row,
Speaker 7: or the fourth straight miss in a row, and so
Speaker 7: when you know Musk talks about pleading for patients, it's
Speaker 7: clearly going to be a tough period during this twenty
Speaker 7: twenty four of anemic lower growth, and so we did
Speaker 7: see that come through in the profitability. Although revenue was up,
Speaker 7: it was a revenue did beat on expectations, but clearly
Speaker 7: when you have high costs coming to the business and
Speaker 7: lots of talk as well on tariffs, which Eenil Musk
Speaker 7: has a direct stake in given his, for example, support
Speaker 7: of President Trump.
Speaker 1: Yeah, no, absolutely, and also the robot taxi prototype that's
Speaker 1: not going to be unveiled until the tenth of October.
Speaker 1: I mean investors have big hopes for Tesla. How much
Speaker 1: is the valuation based on what is to come?
Speaker 7: Yeah, And this is where Elamask is trying to reframe
Speaker 7: Tesla into more than just being an EV player, into
Speaker 7: more of an AI trade. And so when you look
Speaker 7: at the MAGS seven stocks you see the likes of
Speaker 7: Navidio and others. Clearly Tesla has to do a lot
Speaker 7: more to try and prove its credentials. And so with
Speaker 7: stuff such as you know, having a robotaxi, having humanized robots,
Speaker 7: and these are all things which will really boost this
Speaker 7: kind of valuation. But clearly these are really hard things
Speaker 7: to accomplish. And so by having pushed back officially on
Speaker 7: the robotaxi date by a couple of months, it's still
Speaker 7: only going to be a prototype and that's the problem.
Speaker 7: How hard is it to get into a more realistic
Speaker 7: kind of production and so there is that challenger, and
Speaker 7: especially when you talk about autonomy or autonomous driving, these
Speaker 7: components which underpin the product as well. If it doesn't
Speaker 7: work as design and with the regulatory scrutiny, that's going
Speaker 7: to really take a hit to its prospects and its
Speaker 7: product line up off the future of which this very
Speaker 7: much hinges on.
Speaker 1: Yeah, absolutely, Elon Musk talking about using humanoid robots next year.
Speaker 1: And thank you so much Danny for being with me,
Speaker 1: Bloomberg's EV supply chain reporter Danny Lee there on the
Speaker 1: Tesla results. One of the key results are driving markets
Speaker 1: then today and last night of course in the US,
Speaker 1: but I also want to talk about the politics in America.
Speaker 1: With just over one hundred days before election day, the
Speaker 1: likely Democratic nominee Kamala Harris held a rally in the
Speaker 1: swing state of Wisconsin on Tuesday, criticizing Donald Trump. Was
Speaker 1: talking about how she would proudly put her record against
Speaker 1: Trump's any day of the week. Joining me now is
Speaker 1: our senior editor Bill Ferries. Good morning, Bill. You've been
Speaker 1: great in kind of passing what's been going on in
Speaker 1: this political fray in the US. How did Harris reintroduce
Speaker 1: herself to the nation on the paintred as it were?
Speaker 1: It's thought that she will energize women and young voters,
Speaker 1: and black and Hispanic voters in the US, perhaps also independence.
Speaker 1: What was the tone like in the rally.
Speaker 8: Well, I think you saw a lot more energy in
Speaker 8: that campaign rally than what we've typically come to expect
Speaker 8: in some of the Biden rallies. And listen, it's coming
Speaker 8: after almost more than three weeks of the Democrats engaging
Speaker 8: in this massive wave of infighting over should Biden step
Speaker 8: off or should he not? And who would be the
Speaker 8: nominee and who shouldn't be. So that is largely resolving
Speaker 8: itself now, all behind Kamala Harris, and she took the
Speaker 8: stage and there was a lot of enthusiasm in the crowd,
Speaker 8: and she really leaned into her experience as a former prosecutor.
Speaker 8: She was, of course, the Attorney general of California, and
Speaker 8: she tried to basically remind the audience and voters of
Speaker 8: the convictions that Donald Trump has faced, the court cases
Speaker 8: he still has against him. She said that you know,
Speaker 8: she's gone after predators and cheats and and so she
Speaker 8: knows you know, this line that she has now she
Speaker 8: knows Donald Trump's type. That got a huge roar from
Speaker 8: the crowd. It's it just has a it has a
Speaker 8: very different feel than what I think we u what
Speaker 8: people had grown accustomed to in the previous months in
Speaker 8: this campaign.
Speaker 1: Also, the fundraising looks like more than two hundred and
Speaker 1: fifty million dollars raise for Kamala Harris or the Democrats
Speaker 1: since Biden dropped out. And also Trump his campaign challenging
Speaker 1: the fact that Biden's war chest will go to Kamala Harris.
Speaker 8: Right the Trump campaign filing trying to file a legal
Speaker 8: suit against this decision to transfer it's ninety six million
Speaker 8: dollars that was in the Biden Harris campaign war chest
Speaker 8: to basically just allow that to get transferred over to
Speaker 8: the Harris for President campaign. Most election law experts say
Speaker 8: that that has little chance of going forward. Kamala Harris
Speaker 8: was already on the ticket when those delegates were chosen
Speaker 8: in the primaries, So it might be a different situation
Speaker 8: if there had been a third a third person or
Speaker 8: a different person picked who would have to come in
Speaker 8: and set up their own legal structure and campaign basically
Speaker 8: starting from zero from scratch. But yeah, yeah, a huge
Speaker 8: amount of money flowing in partly reflective of money that
Speaker 8: had been held on the sidelines over the last month,
Speaker 8: and then I think there is just there is some
Speaker 8: enthusiasm out there for you know, Kamala Harris would be
Speaker 8: the first female president the United States has seen, so
Speaker 8: that is that has drawing some attention in the same
Speaker 8: way I think Hillary Clinton's candidacy did in twenty sixteen.
Speaker 7: Yeah.
Speaker 1: Absolutely. Just lastly, who do we expect to be Harris's
Speaker 1: VP pick? This again is another big question.
Speaker 8: Still, Yeah, the short list is still full of, you know,
Speaker 8: leaders from some of these key battleground states. We're talking
Speaker 8: about Governor Josh Shapiro of Pennsylvania. He has not been
Speaker 8: in office long, but a Democrat winning in Pennsylvania, would
Speaker 8: you know, could bring a lot. You have Mark Kelly,
Speaker 8: the senator from Arizona, the former astronaut who could help
Speaker 8: secure Arizona. Gretchen Whitmer would be the first would make
Speaker 8: for the first female all female ticket in American history,
Speaker 8: the governor of Michigan. So those are the kinds of candidates,
Speaker 8: largely from battleground states that I think the Harris campaign
Speaker 8: is going to be vetting quickly.
Speaker 9: This is Bloomberg Daybreak Europe, your morning brief on the
Speaker 9: stories making news from London to Wall Streets and beyond.
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Speaker 1: I'm Caroline Hepka.
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