WEBVTT - Bloomberg Daybreak: October 28, 2022 - Hour 1 (Radio) 0:00:01.160 --> 0:00:04.400 Live from the Bloomberg Interactive Berger Studios. This is Bloomberg 0:00:04.480 --> 0:00:08.360 day Break for Friday, October two. Coming up this hour, 0:00:08.600 --> 0:00:12.200 Amazon shares plunge after becoming the latest tech giant to 0:00:12.240 --> 0:00:15.920 post disappointed earnings. Apple a voice the tech route despite 0:00:15.960 --> 0:00:19.200 warning of a holiday slowdown. The earning spotlight turns to 0:00:19.239 --> 0:00:21.840 Big Oil. X On Mobile and Chevron are on tap 0:00:21.880 --> 0:00:25.360 to report an Elon Musk officially takes over as CEO 0:00:25.560 --> 0:00:28.560 of Twitter New York City as its first ever female 0:00:28.680 --> 0:00:31.280 f d n Y Commissioner. West, We're learning more about 0:00:31.280 --> 0:00:35.120 the hijack passenger bus and queens. I'm Michael Barber. More ahead, 0:00:35.159 --> 0:00:37.720 I'm John Stage showIn sports. Then that's lost in overtime, 0:00:37.760 --> 0:00:40.560 the Ravens beat the Bucks. The Phillies and Astros begin 0:00:40.640 --> 0:00:45.640 the World series tonight in Houston. That's all training ahead 0:00:45.680 --> 0:00:49.280 on Bloomberg Daybreak on Bloomberg Eliving Free on New York, 0:00:49.440 --> 0:00:54.120 Bloomberg one, Washington, d C, Bloomberg one O six one, Boston, 0:00:54.400 --> 0:00:58.840 Bloomberg nine sixties and Francisco Sirius x M one nineteen 0:00:59.080 --> 0:01:01.880 and around the world on Bloomberg Radio Dot Car. I'm 0:01:02.360 --> 0:01:09.039 the Bloomberg Business app. Then good Friday morning. I'm Nathan 0:01:09.040 --> 0:01:12.480 Hagar and I'm Karen Moscow and US dock indext futures 0:01:12.520 --> 0:01:15.080 are lower this morning. We are coming up to five 0:01:15.120 --> 0:01:16.919 oh went on Wall Street and we checked the markets 0:01:16.959 --> 0:01:20.040 every fifteen minutes throughout the trading day. On Bloomberg SMP 0:01:20.280 --> 0:01:23.240 Future is down about thirty points this morning. Down Future 0:01:23.280 --> 0:01:26.800 is down ninety one and nastday futures down one thirty one. 0:01:27.120 --> 0:01:30.520 We're down one point two percent. Tenure Treasury down twelve 0:01:30.600 --> 0:01:33.399 thirty seconds. Healed three point and nine six percent. I 0:01:33.400 --> 0:01:37.080 mean yield in the two year four point three four percent. Nathan, Well, Karen. 0:01:37.120 --> 0:01:39.400 We begin this morning with an earnings related sell off 0:01:39.400 --> 0:01:41.320 that is on track to wipe off more than six 0:01:41.400 --> 0:01:44.720 hundred billion dollars in market value this week alone, and 0:01:44.760 --> 0:01:48.440 that's just from America's five largest tech companies. The latest 0:01:48.440 --> 0:01:51.720 culprit is Amazon. Those shares are down thirteen and two 0:01:51.760 --> 0:01:55.200 thirds percent in early trading following earnings that fell short ed. 0:01:55.280 --> 0:01:58.160 Ludlow has details from our Bloomberg nine sixty newsroom in 0:01:58.200 --> 0:02:01.520 San Francisco. There was this a verer after ours reaction 0:02:01.600 --> 0:02:04.320 to Amazon's forecast for the fourth quarter. The revenue will 0:02:04.320 --> 0:02:06.640 be between a hundred and forty and a hundred forty 0:02:06.720 --> 0:02:10.280 eight billion dollars, significantly below what the street is looking for. 0:02:10.360 --> 0:02:12.760 And that's a feme oft this earning season. Right, investors 0:02:12.760 --> 0:02:15.639 punishing companies, not just those missing on the top and 0:02:15.680 --> 0:02:18.480 bottom line, but those giving tepid forecasts. There was a 0:02:18.600 --> 0:02:21.480 long list of problems to Amazon. Really, currency continues to 0:02:21.520 --> 0:02:23.280 be a head win to the tune of nine hundred 0:02:23.320 --> 0:02:25.520 million dollars in the course had gone and it will 0:02:25.520 --> 0:02:28.720 continue to impact Amazon going into the final three months 0:02:28.720 --> 0:02:32.079 of this year. Ed Lovelow for Bloomberg News in San Francisco. 0:02:32.320 --> 0:02:35.160 All right, thanks well. Apple has managed to avoid the 0:02:35.160 --> 0:02:38.000 tech route. Shares are up one percent in early trading. 0:02:38.040 --> 0:02:41.200 Those sales of iPhones and services were softer than expected. 0:02:41.360 --> 0:02:45.799 Apple's revenue and profit both topped estimates. Still, Apple CFO 0:02:45.880 --> 0:02:49.919 lookam street warrants of a holiday slowdown. Overall, we believe 0:02:49.960 --> 0:02:53.840 to company year will be year. Revenue performance will decelerate 0:02:54.040 --> 0:02:57.280 during the December quarter as compared to the September quarter 0:02:57.360 --> 0:03:01.160 for a number of reasons. First, we expect nearly ten 0:03:01.200 --> 0:03:05.400 percentage points of negative year over year impact from fort 0:03:05.440 --> 0:03:09.360 and Exchange and Apples CFO Luka my story says sales 0:03:09.360 --> 0:03:13.359 of Mac computers will decline substantially. Stay tuned for analysis 0:03:13.400 --> 0:03:16.600 on both Apple and Amazon coming up shortly when we 0:03:16.639 --> 0:03:19.680 speak live with the Loup Adventures A co founder Gene Munster. 0:03:19.919 --> 0:03:21.679 In the meantime, Karen, we have some more earnings to 0:03:21.720 --> 0:03:23.880 get you caught up on. Shares of Intel or up 0:03:23.919 --> 0:03:26.799 about five percent in early trading, the chipmaker's pledging to 0:03:26.880 --> 0:03:30.160 slash costs to combat a persistent slump and computer demand 0:03:30.160 --> 0:03:33.080 that's dragging down sales and profit. Shares of Gill Lead 0:03:33.200 --> 0:03:35.560 Sciences are up three and a half percent. The company 0:03:35.560 --> 0:03:38.440 boosted its earnings guidance for the full year, and shares 0:03:38.480 --> 0:03:40.800 of Pinterest are hired by eight and a half percent. 0:03:40.880 --> 0:03:44.440 The social media company reported earnings and revenue that beat estimates. 0:03:44.680 --> 0:03:47.000 Well Up Next Nathan, the focus turns to big oil. 0:03:47.160 --> 0:03:50.000 Both ex On Mobile and Chevron report this morning. We 0:03:50.040 --> 0:03:53.800 get a preview from Bloomberg's Jeff Bellinger. Overall, the third 0:03:53.840 --> 0:03:56.520 quarter was likely a good one for the oil giants 0:03:56.560 --> 0:04:00.280 thanks to oil prices that remained elevated through most of 0:04:00.320 --> 0:04:03.920 the last three months. Bloomberg Intelligence says the company's fourth 0:04:03.960 --> 0:04:07.320 quarter outlooks will be key. It raised the possibility of 0:04:07.360 --> 0:04:10.720 weaker cash flow for Exxon Mobile due to falling crude 0:04:10.720 --> 0:04:13.520 and gas prices, and said there is the potential for 0:04:13.600 --> 0:04:17.000 slower profit growth at Chevron. X On Mobile put out 0:04:17.000 --> 0:04:19.840 a pre earnings release to let investors know that its 0:04:19.880 --> 0:04:23.880 chemicals and refining businesses were down compared to the second quarter. 0:04:24.279 --> 0:04:27.919 Jeff Bellinger, Bloomberg Daybreak and jeoff O wait for those earnings. 0:04:27.920 --> 0:04:31.680 President Biden's demanding oil companies cut prices. That's after Shell 0:04:31.839 --> 0:04:35.479 reported its second highest earnings ever. The President says gasoline 0:04:35.480 --> 0:04:39.159 prices should reflect what energy companies pay for oil. Last quarter. 0:04:39.920 --> 0:04:43.080 The five largest oil companies made in the last quarter 0:04:43.839 --> 0:04:47.720 seventy billion dollars in profit in ninety days. With the 0:04:47.760 --> 0:04:50.640 comments from President Biden too a sharp response from oil 0:04:50.680 --> 0:04:53.640 industry leaders. They say refiners don't set the price at 0:04:53.640 --> 0:04:57.480 the pump and that Washington should leverage US energy production well. 0:04:57.560 --> 0:05:00.040 Nathan and then their major story We're following the this 0:05:00.200 --> 0:05:03.679 Morning closes the book on a six month takeover saga. 0:05:03.839 --> 0:05:07.120 Elon Musk has completed as forty four billion dollar acquisition 0:05:07.160 --> 0:05:09.840 of Twitter, and Bloomberg News has learned he plans to 0:05:09.880 --> 0:05:13.039 assume the role of CEO today, there will surely be 0:05:13.080 --> 0:05:15.560 more changes on the way. We get details from Bloomberg 0:05:15.600 --> 0:05:19.080 Intelligence analyst Matthew Bloxom. There's been a lot of speculation 0:05:19.120 --> 0:05:22.240 about how much Elon Musk is going to change Twitter. 0:05:22.360 --> 0:05:25.160 You know, the room is about some tribe and job cuts, 0:05:25.680 --> 0:05:29.080 the reinstatement of people like Donald Trump to the platform, 0:05:29.279 --> 0:05:32.039 a complete change in the business model. Maybe like twelve months, 0:05:32.040 --> 0:05:34.280 you could see him introduce some kind of subscription t 0:05:34.320 --> 0:05:36.720 here to the business. All sorts of things could change. 0:05:36.760 --> 0:05:38.960 I think it's gonna be an interesting few days and months, 0:05:38.960 --> 0:05:40.400 and I'm sure we're gonna hear quite a bit from 0:05:40.440 --> 0:05:44.560 him today about his plans. Bloomberg Intelligence analyst Matthew Bloxom 0:05:44.600 --> 0:05:47.359 says Musk is expected to remain CEO in the interim, 0:05:47.440 --> 0:05:49.760 but may eventually see the role in the long term. 0:05:49.920 --> 0:05:51.760 Let's turn to the U. S economy now, Karen, we're 0:05:51.760 --> 0:05:53.880 wrapping up the week with a few notable data points 0:05:53.880 --> 0:05:57.160 covering inflation, sentiment, and spending. We get more from Bloomberg's 0:05:57.200 --> 0:06:00.600 viny Dell Judas the government issues data in September Household 0:06:00.640 --> 0:06:02.839 income and spending today in Wall Street, will keep an 0:06:02.839 --> 0:06:05.960 eye on inflation figures tied to the report. Bloomberg Economics 0:06:06.000 --> 0:06:08.680 has any surprise could influence the course of Federal Reserve 0:06:08.720 --> 0:06:12.320 interest rate hikes maintime Bloomberg Economics as today's University of 0:06:12.360 --> 0:06:16.240 Michigan consumer sentiment index for late October will remain low 0:06:16.279 --> 0:06:20.440 by historic standards, highlighting recession risks. Also on tap today 0:06:20.680 --> 0:06:23.920 the Employment cost Index and pending home sales Fini Del 0:06:24.000 --> 0:06:26.800 Judai s Bloomberg Daybreak Fenny Thanks. In Asia overnight, it 0:06:26.839 --> 0:06:29.479 was all about the yen. The currency has rebounded this week, 0:06:29.520 --> 0:06:31.920 but is reversing that trend. This morning. We can into 0:06:31.920 --> 0:06:34.680 one forty seven point four seven against the dollar. That's 0:06:34.680 --> 0:06:36.760 after the Bank of Japan stood pat and its ultra 0:06:36.839 --> 0:06:40.400 low interest rate policy. Bloomberg Daybreak Asia anchor Brian Curtis 0:06:40.400 --> 0:06:42.720 has a story. This is the b o J pushing 0:06:42.720 --> 0:06:45.960 back against speculation it might change its tomb no go. 0:06:46.520 --> 0:06:49.080 The board left the negative rate, the tenure yield cap, 0:06:49.120 --> 0:06:52.240 and the asset purchases unchanged. This was in line with 0:06:52.279 --> 0:06:55.200 all forty nine economists surveyed. The b o J did 0:06:55.279 --> 0:06:58.680 raise the inflation forecast to two point nine percent for 0:06:58.720 --> 0:07:01.640 the year ending in March. It predicted price growth will 0:07:01.680 --> 0:07:04.640 slow to one point six percent in the next twelve months. 0:07:05.240 --> 0:07:07.400 The b o J is walking a tight rope here 0:07:07.440 --> 0:07:10.120 as the Devish Dance puts downward pressure on the end 0:07:10.280 --> 0:07:13.760 while the government is spending billions supporting it. Brian Curtis, 0:07:13.760 --> 0:07:17.560 Bloomberg Day Break, Right, Brian, thank you, Local News straight ahead. 0:07:17.640 --> 0:07:24.600 This is Bloomberg Exparen. It's five oh seven on Wall 0:07:24.600 --> 0:07:27.800 Street work forty seven degrees in Central Park construction on 0:07:27.840 --> 0:07:30.560 the north bound New Jersey Turnpike Eastern Spur. We'll get 0:07:30.600 --> 0:07:33.320 to the details and traffic shortly. First, Michael Bars here 0:07:33.360 --> 0:07:35.080 with more on what's going on in New York and 0:07:35.200 --> 0:07:38.000 around the world. Good morning, Michael, Good morning Nathan. We're 0:07:38.080 --> 0:07:41.440 learning more about a nightmarriage commute for public transit bus 0:07:41.680 --> 0:07:45.640 riders in New York City. Police and mt A bus 0:07:45.640 --> 0:07:48.760 was hijacked in Queen yesterday. The bus driver is hailed 0:07:48.760 --> 0:07:51.480 as a hero for not moving the bus until passengers 0:07:51.680 --> 0:07:54.560 could get off the vehicle after the suspect arm with 0:07:54.640 --> 0:07:57.280 what turned out to be a bb gun confronted the 0:07:57.360 --> 0:08:00.640 veteran driver. The forty four year old man Wayne Ganty 0:08:00.720 --> 0:08:03.240 was taken into custody after the bus crashed into a 0:08:03.360 --> 0:08:08.840 utility poll NYPD Deputy Chief Jerry O'Sullivan, I definitely want 0:08:08.840 --> 0:08:11.600 to command the driver for his actions. He did not 0:08:11.720 --> 0:08:14.320 move the bus until everyone was off that bus. I 0:08:14.360 --> 0:08:17.160 believe the driver was calm and did a great job. 0:08:17.640 --> 0:08:20.920 Deputy Chief O'Sullivan says the bus driver jumped out of 0:08:20.960 --> 0:08:24.960 the driver's side window to eventually escape. New York City 0:08:25.000 --> 0:08:28.760 Mayor Eric Adams appointed Acting Fire Commissioner Laura Kavanaugh to 0:08:28.840 --> 0:08:32.080 leave the Department on a permanent basis, making her the 0:08:32.080 --> 0:08:35.200 first female commissioner in the one d fifty seven year 0:08:35.280 --> 0:08:38.000 history of the Fire Department of New York. While we 0:08:38.240 --> 0:08:41.440 put in place in national search, looking over several names 0:08:41.480 --> 0:08:46.439 and interviewing several candidates, kept coming back to Laura over 0:08:46.520 --> 0:08:50.199 and over again, over and over again. I just kept 0:08:50.240 --> 0:08:54.800 coming back to her leadership. After getting sworn in, Kavanaugh 0:08:54.880 --> 0:08:58.040 says her journey to this moment was unexpected. New York 0:08:58.080 --> 0:09:03.200 City story is fundamentally and of making the impossible possible. Kavanaugh, 0:09:03.240 --> 0:09:06.520 who is forty, has served as acting commissioners since the 0:09:06.559 --> 0:09:10.720 retirement of Commissioner Daniel nine Ro in February. Election sites 0:09:10.720 --> 0:09:14.280 across the country have been encountering threats and intimidation since 0:09:14.320 --> 0:09:17.760 early voting began in some states. Out of concerns for 0:09:17.880 --> 0:09:21.400 the safety of poll workers and voters, the NYPD has 0:09:21.440 --> 0:09:24.400 announced that they will be keeping a closer eye on 0:09:24.520 --> 0:09:27.840 polling places. With the mid term elections just less than 0:09:27.880 --> 0:09:31.679 two weeks away, the NYPD is warning that racially motivated 0:09:31.720 --> 0:09:37.120 an anti government extremist good target poll workers, political rallies, politicians, 0:09:37.160 --> 0:09:41.080 and voting sites. Police say there are currently no specific 0:09:41.120 --> 0:09:43.840 threats in the city, North Koree of fire too short 0:09:43.960 --> 0:09:47.400 range ballistic missiles today as it continues a barrage of 0:09:47.520 --> 0:09:51.480 launches in opposition to US and South Korean military drills. 0:09:51.800 --> 0:09:54.360 Global News twenty four hours a day on air and 0:09:54.559 --> 0:09:58.000 on Bloomberg Quicktake, powered by more than twenty seven hundred 0:09:58.040 --> 0:10:01.280 journalists and analysts more than twenty countries. Michael Barr, This 0:10:01.520 --> 0:10:08.840 is Bloomberg, Nathan, Thank you, Michael. Almost five ten on 0:10:08.880 --> 0:10:10.839 Wall Street time for the Bloomberg Sports Up Tape, brought 0:10:10.880 --> 0:10:13.320 to you by try State Autie. Good morning, John Stanshire, 0:10:13.360 --> 0:10:15.880 Good morning night. And after a turbulent off season where 0:10:15.920 --> 0:10:18.480 a star player demanded a trade unless the coach and 0:10:18.520 --> 0:10:21.360 general manager fired, maybe not a surprise the Nets are 0:10:21.360 --> 0:10:23.720 off to a slow start, lost at Barkley's to Dallas 0:10:23.760 --> 0:10:27.000 one nine, one five and overtime. Luken Down took forty 0:10:27.040 --> 0:10:29.760 one points in a a triple double for the Mad Kevin Durand, 0:10:29.760 --> 0:10:32.440 who was sending that trade demand, scored thirties seven points. 0:10:32.520 --> 0:10:35.160 Kyrie even had thirty nine, But the Nets are too 0:10:35.280 --> 0:10:37.720 much a two man team. The duo took fifty two 0:10:37.720 --> 0:10:39.680 shots and the rest of the team only forty one, 0:10:39.720 --> 0:10:41.800 and the Nets are one and four next to three 0:10:41.800 --> 0:10:44.160 and one place tonight in Milwaukee. The Tampa Bay Bucks 0:10:44.160 --> 0:10:46.680 are three and five after starting two and oh lost 0:10:46.679 --> 0:10:49.920 in home to Baltimore twenty seven. Twenty two. Ravens out 0:10:50.000 --> 0:10:53.080 rushed Tampa Bay two hundred and thirty one to forty four. 0:10:53.160 --> 0:10:56.079 Tom Brady on what went wrong sting red areastrom there 0:10:56.120 --> 0:11:04.720 down game at two point as m h s back 0:11:04.880 --> 0:11:10.080 up start the first quarter, start of the third quarter 0:11:12.120 --> 0:11:14.439 offense football the only positive for Tampa right now in 0:11:14.480 --> 0:11:17.240 the NFC South, No one's over five hundreds. The Bucks 0:11:17.280 --> 0:11:19.400 can win the division, but hard to see them making 0:11:19.400 --> 0:11:21.320 a Super Bowl run the way they're playing now. Giants 0:11:21.320 --> 0:11:23.839 are six and one without any production from last year's 0:11:23.840 --> 0:11:27.720 first round. Graphic whiteout can Darius Tony, who hurt one 0:11:27.760 --> 0:11:30.200 hamstring and then the other, and the Giants just traded 0:11:30.240 --> 0:11:33.000 Tony to Kansas City for a third and six mound 0:11:33.040 --> 0:11:36.439 draft picks. The World Series begins tonight in Houston. Astros 0:11:36.480 --> 0:11:38.440 won a hundred and six games in the regular season. 0:11:38.440 --> 0:11:42.200 The Phillies won seven. That's the largest disparity since the 0:11:42.320 --> 0:11:46.160 third World Series ever in nineteen o six. John Stashward 0:11:46.160 --> 0:11:50.199 Blue boots all right, John, Thanks Nastak. Futures down one 0:11:50.240 --> 0:11:52.600 in the third percent down a hundred forty eight points, 0:11:52.640 --> 0:11:57.200 dragged down by Amazon down thirteen point six percent. Apple 0:11:57.320 --> 0:12:00.880 shares a little bit higher. Will wrap up tech earnings 0:12:00.920 --> 0:12:03.800 this week with g Monster of lip Ventures. Next, This 0:12:04.320 --> 0:12:09.800 is Bloomberg. Bloomberg Sports Report was brought to you by Audie. 0:12:09.800 --> 0:12:11.800 Don't let someone else drive off in the autie model 0:12:11.840 --> 0:12:14.640 you've always wanted. Visit your local tri state autie dealer 0:12:14.679 --> 0:12:16.600 to get behind the wheel of yours today, or visit 0:12:16.640 --> 0:12:23.360 autie Offers dot com for more information, markets, headlines and 0:12:23.520 --> 0:12:26.760 breaking news twenty four hours a day at Bloomberg dot Com, 0:12:26.880 --> 0:12:30.400 the Bloomberg Business Outland at Bloomberg Quick Take. This is 0:12:30.440 --> 0:12:39.640 a Bloomberg business lash. And I'm Karen Moscow and US 0:12:39.720 --> 0:12:42.960 DOT index futures are falling this morning, led by the 0:12:43.160 --> 0:12:47.079 NASDACK with nousdack futures down one hundred fifty points, down 0:12:47.120 --> 0:12:49.960 one and a third percent. S and P futures down 0:12:49.960 --> 0:12:53.120 thirty two, Dow futures down a hundred, ten year Treasury 0:12:53.120 --> 0:12:55.760 down eighteen thirty seconds here three point nine nine percent. 0:12:55.800 --> 0:12:58.200 They yield on the two year four point three seven percent. 0:12:58.520 --> 0:13:00.680 And I've ex screwed oil down one a half percent 0:13:00.720 --> 0:13:03.120 at a dollar thirty at eighty seven dollars seventy eight 0:13:03.160 --> 0:13:05.880 cents of barrel. That's a Bloomberg business flash. Now here's 0:13:05.920 --> 0:13:08.720 Michael Barr with Moore on what's going on around the world. Michael, 0:13:08.720 --> 0:13:11.560 good morning, Good morning, Karen Job. Democrats say they are 0:13:11.559 --> 0:13:14.320 still a confident they'll maintain control of Congress after mid 0:13:14.480 --> 0:13:17.960 terms less than two weeks away, with poles showing Republicans 0:13:17.960 --> 0:13:22.239 gaining ground. Democrats attorney to former President Obama. He's campaigning 0:13:22.240 --> 0:13:25.559 today in Atlanta for Senator Raphael Warnock, who's locked in 0:13:25.600 --> 0:13:29.000 a tight race against former football star Herschel Walker. There's 0:13:29.040 --> 0:13:32.840 the night football the Ravens beat the Buccaneers twenty two. Tonight, 0:13:32.880 --> 0:13:35.080 Game one of the World Series between the Phillies and 0:13:35.120 --> 0:13:38.800 Astros NBA. The Nets lost Warriors one. In the NHL, 0:13:38.880 --> 0:13:41.760 the Bruins won the Capital's Lost. Global News twenty four 0:13:41.800 --> 0:13:44.600 hours a day on air and on Bloomberg Quicktake, powered 0:13:44.600 --> 0:13:47.080 by more than twenty seven journalist and analysts more than 0:13:47.080 --> 0:13:50.000 a hundred twenty countries. Michael Barr And this is Bloomberg 0:13:50.080 --> 0:13:52.440 Nathan Banks. Michael, We're coming up to five nineteen on 0:13:52.480 --> 0:13:55.560 Wall Street Live from the Bloomberg Interactive Brokers studios. This 0:13:55.640 --> 0:13:58.320 is Bloomberg Daybreak. At the end of a bruising week 0:13:58.400 --> 0:14:01.120 for tech earnings, and Amazon on is the latest stock 0:14:01.200 --> 0:14:03.959 to get punished right now, down thirteen and a half 0:14:04.000 --> 0:14:07.680 percent on a week forecast for the holiday quarter. But 0:14:07.720 --> 0:14:11.240 if there's one somewhat bright spot, it maybe Apple. Those 0:14:11.240 --> 0:14:14.439 shares are little change to the upside at the moment. 0:14:14.520 --> 0:14:17.120 Let's get some more insights now. Gene Monster is with 0:14:17.200 --> 0:14:19.800 us live, the co founder of Loop Ventures. It is 0:14:19.840 --> 0:14:22.240 great to speak with Eugene, and I've gotten a look 0:14:22.240 --> 0:14:25.680 at your note on Apple. You're right that investors are 0:14:25.720 --> 0:14:29.440 buying both performance and potential. Tell us a little bit 0:14:29.440 --> 0:14:32.800 more about what you mean, Well, the investors in this 0:14:32.960 --> 0:14:36.360 environment want both, and what we've seen is that the 0:14:36.400 --> 0:14:40.200 companies that have offered the biggest potential. You think about 0:14:40.280 --> 0:14:42.800 Meta is the perfect example of that related to the 0:14:42.840 --> 0:14:47.600 metaverse have been hit the hardest. Google to a lesser extent, 0:14:48.120 --> 0:14:51.120 but still this idea of investors waiting for something to 0:14:51.200 --> 0:14:55.400 emerge is usually very important for tech investors, but in 0:14:55.440 --> 0:14:58.320 this earning period it's less important. And I think one 0:14:58.360 --> 0:15:01.680 of the beauties of Apple is that their current performance 0:15:01.760 --> 0:15:05.240 has been solid and they still have this optionality around 0:15:05.280 --> 0:15:08.200 new markets that they can get into. They can potentially 0:15:08.360 --> 0:15:10.600 have a step function up in their growth rate, which 0:15:10.640 --> 0:15:12.800 is hard to imagine given how big they are that 0:15:13.440 --> 0:15:16.160 the law of numbers can still work in their favor. 0:15:16.240 --> 0:15:18.720 But I think that that is the is the balance 0:15:18.760 --> 0:15:20.520 that this company is working. And just to put it 0:15:20.480 --> 0:15:23.520 into perspective, Nathan, one final point is that Apple is 0:15:23.560 --> 0:15:27.160 the only big tech company to guide essentially in line 0:15:27.160 --> 0:15:29.120 with the street. They don't give formal guidance, but you 0:15:29.160 --> 0:15:31.720 can back into it, and I think that that speaks 0:15:31.760 --> 0:15:34.920 to the strength of performance. And if you're curious the 0:15:35.000 --> 0:15:38.120 reason why, what was iPhone it's just over half of 0:15:38.120 --> 0:15:40.240 their business. It was up ten percent year ever, a 0:15:40.320 --> 0:15:43.520 year that was in the face of a forty seven 0:15:43.520 --> 0:15:46.720 percent comp and so the number actually would have been 0:15:46.720 --> 0:15:50.600 even stronger if not for supply constraints. They're still supply 0:15:50.640 --> 0:15:53.280 constrained on the most popular pro models by three to 0:15:53.400 --> 0:15:56.120 four weeks, and typically at this point in the cycle, 0:15:56.600 --> 0:15:59.080 or six weeks into the new iPhone cycle, you would 0:15:59.120 --> 0:16:01.560 see lead times of one to two weeks. And so 0:16:02.080 --> 0:16:05.080 I think that, um, you know, they are continuing to 0:16:05.120 --> 0:16:07.680 do well. They got the performance, and they got the 0:16:07.720 --> 0:16:11.320 potential around automotive and a R and and something in health. 0:16:11.720 --> 0:16:14.760 Talking about supply constraints, we were seeing a lot of 0:16:14.880 --> 0:16:19.960 constraints apparently coming out of Amazon's results, projecting a much 0:16:20.080 --> 0:16:23.320 weaker than expected holiday quarter. And I assume that that 0:16:23.320 --> 0:16:27.400 that includes the earlier Prime Day promotions that we just saw, right, 0:16:28.680 --> 0:16:32.680 most of those promotes, those promotions fell into the September quarter, 0:16:32.720 --> 0:16:36.040 and so it's it's less about the Prime Day impact. 0:16:36.120 --> 0:16:38.960 But I want to put some perspective, And they did 0:16:39.040 --> 0:16:41.720 guide lower than where the street was at for the 0:16:41.840 --> 0:16:44.400 December quarter, that's true, But I just I think there's 0:16:44.480 --> 0:16:46.800 this Um, I think it's an overreaction. I just want 0:16:46.800 --> 0:16:49.480 to make the case that it is an overreaction. Is 0:16:49.480 --> 0:16:52.320 that the street was previously looking for twelve percent revenue 0:16:52.320 --> 0:16:55.600 growth for December. If you take the midpoint of their guys, 0:16:55.640 --> 0:16:58.400 it would have been four percent. So that is a 0:16:58.440 --> 0:17:01.880 slowing girl, There's no doubt about it. Uh. They usually 0:17:01.960 --> 0:17:04.600 hit the high end over the past twenty years almost 0:17:04.640 --> 0:17:06.200 nine percent of the time they come in at the 0:17:06.240 --> 0:17:08.560 high end. That would be like six percent. So they 0:17:08.560 --> 0:17:11.439 guided down. That is true. The consumer is weak, that 0:17:11.680 --> 0:17:15.199 is true. Uh, the advertisers are weak. All of this 0:17:15.320 --> 0:17:18.000 is having a negative impact on Amazon's business. But the 0:17:18.040 --> 0:17:21.480 piece that surprises me is that I think it is uh, 0:17:21.680 --> 0:17:27.920 just this reaction down is more commentary about that we're 0:17:27.920 --> 0:17:31.320 talking about earlier with Apple. Is that investors just demand 0:17:31.480 --> 0:17:34.600 performance today, and whether it's a small cap or a 0:17:34.600 --> 0:17:38.960 megatech cap, they wanted today. And I suspect that investors 0:17:38.960 --> 0:17:41.960 will quickly move on and and and get more comfortable 0:17:42.040 --> 0:17:45.000 that Amazon's business isn't a good place longer term. Well, 0:17:45.000 --> 0:17:47.080 we've got John Gene. I've got to get your thoughts 0:17:47.200 --> 0:17:50.600 on Twitter now that Elon Musk apparently is at least 0:17:50.600 --> 0:17:55.840 an interim CEO. Is Twitter investable under an Elon Musk 0:17:55.880 --> 0:18:00.960 as the leader? Yes, anything with Elon On right now, 0:18:01.000 --> 0:18:03.920 he still has the golden touch, so it is investible. 0:18:03.960 --> 0:18:06.440 He's gonna kind of go away for two or three 0:18:06.520 --> 0:18:08.800 years and and take the rails off of it and 0:18:08.880 --> 0:18:11.359 run this like a private company that that that it 0:18:11.400 --> 0:18:14.880 will be, and we'll see what what he pops out. 0:18:14.920 --> 0:18:17.600 And I was encouraged to hear his commentary yesterday that 0:18:17.640 --> 0:18:19.960 he does not want this to become a free for 0:18:20.080 --> 0:18:25.040 all because obviously he's gonna take some of the governor's 0:18:25.080 --> 0:18:28.280 off of what you can say, And I think that's 0:18:28.280 --> 0:18:32.480 that's important ultimately when you when you put this all together, 0:18:32.520 --> 0:18:35.600 Twitter is still a side project for Elon. His his 0:18:35.680 --> 0:18:40.080 true passions are Tesla and SpaceX, and I think that, uh, 0:18:40.200 --> 0:18:42.199 we're thinking a lot about it now. Probably a year 0:18:42.280 --> 0:18:44.040 or two from now, we'rell be thinking a lot more 0:18:44.080 --> 0:18:47.800 about SpaceX and Tesla. Just about thirty seconds left, Gene, 0:18:47.880 --> 0:18:52.639 we've seen obviously tech shares broadly get punished this week. 0:18:53.000 --> 0:18:57.280 Would you buy back into tech at these levels? I 0:18:57.600 --> 0:19:00.320 think so forth if you have a perspective of I 0:19:00.359 --> 0:19:03.399 think that more than two year perspective. I mean, we 0:19:03.480 --> 0:19:05.800 own some of these, We own Meta, we own Amazon. 0:19:05.880 --> 0:19:08.440 They've had a tough week, but we we're not selling them. 0:19:08.520 --> 0:19:11.280 And ultimately I think that uh, you know, they have 0:19:11.400 --> 0:19:15.320 assets that are hard to replicate the world's population visits 0:19:15.320 --> 0:19:19.000 a Facebook property on a daily basis. Amazon has logistics 0:19:19.000 --> 0:19:21.639 that no other e commerce company can touch. And I 0:19:21.680 --> 0:19:23.720 think you probably have to assume that all that we're 0:19:23.720 --> 0:19:26.920 in economically is going to fade or we'll go away. Eventually, 0:19:26.920 --> 0:19:29.880 we'll stabilize and these companies are going to write right 0:19:29.920 --> 0:19:32.440 size their growth rates back to what we're accustomed to. 0:19:33.119 --> 0:19:35.560 Thanks as always, Geen, great to get your thoughts on tech. 0:19:35.600 --> 0:19:38.479 Geene Monster, the co founder of Loop Ventures with us 0:19:38.520 --> 0:19:41.199 this morning. Looking again at shares of Amazon right now, 0:19:41.240 --> 0:19:43.080 they are down thirteen and a half percent in the 0:19:43.080 --> 0:19:47.160 pre market. Apple shares are higher by seven tenths percent. 0:19:47.520 --> 0:19:50.280 Take a look at Tesla as well, now that CEO 0:19:50.320 --> 0:19:53.399 Elon Musk is also CEO of Twitter. Tesla shares at 0:19:53.400 --> 0:19:57.480 the moment are down about one percent. STP futures down 0:19:57.520 --> 0:20:00.480 twenty seven points, staff futures down sixty four nast deck 0:20:00.520 --> 0:20:03.640 features leading to declines down a hundred thirty eight points. 0:20:03.640 --> 0:20:09.679 This is Bloomberg Bloomberg eleven three oh weather. Partly sunny 0:20:09.720 --> 0:20:12.920 today but cool. Highs in the upper fifties, sunshine tomorrow, 0:20:13.119 --> 0:20:15.720 high near sixty, will be in the low sixties under 0:20:15.720 --> 0:20:18.000 a mix of sun and clouds on Sunday. Right now 0:20:18.280 --> 0:20:24.480 forty seven in Central Park, broadcasting live from the Bloomberg 0:20:24.520 --> 0:20:29.000 Interactive Broker Studio in New York, Bloomberg Eving Treo to Washington, 0:20:29.080 --> 0:20:33.160 d C, Bloomberg to Boston, Bloomberg one oh six one 0:20:33.280 --> 0:20:36.720 to San Francisco, Bloomberg nine sixty to the country, Sirius 0:20:36.880 --> 0:20:39.320 XM to the one nine team, and around the globe 0:20:39.400 --> 0:20:43.000 the Bloomberg Business app in Bloomberg Radio dot Com. This 0:20:43.320 --> 0:20:52.200 is Bloomberg Daybreak and it's five thirty on Wall Street. 0:20:52.280 --> 0:20:55.800 Good morning. I'm Teren Moscow. I'm Nathan Hagar. Bloomberg Daybreak 0:20:55.840 --> 0:20:57.800 is brought to you by s E. I imagine you're 0:20:57.800 --> 0:21:01.600 asset management firms, operational infrastruct there's a competitive advantage. Let 0:21:01.800 --> 0:21:04.040 s E I show you how a se I C 0:21:04.240 --> 0:21:06.800 dot com slash I M S and we're just about 0:21:06.800 --> 0:21:09.160 four hours away from the Open of US training. Let's 0:21:09.160 --> 0:21:10.520 get you have to date in the news you need 0:21:10.600 --> 0:21:13.320 to know at this hour, US futures are falling lad 0:21:13.359 --> 0:21:16.000 lower by tech as we wrap up a volatile week. 0:21:16.320 --> 0:21:19.360 Amazon is leading the decline, which shares down a thirteen 0:21:19.400 --> 0:21:22.800 and a half percent. Amazon is predicting the slowest holiday 0:21:22.920 --> 0:21:26.640 quarter growth in the company's history. Bloomberg Intelligence senior analysts 0:21:26.640 --> 0:21:29.600 Plunum Goyle has more on the results. Sales were a 0:21:29.600 --> 0:21:32.960 week across the board, guidance of the week, margins are week. 0:21:33.440 --> 0:21:36.080 I mean overall, you know, the bright star here that 0:21:36.160 --> 0:21:39.160 used to be WUS is also weaker both on sales 0:21:39.160 --> 0:21:41.840 and margin. So I think there's a lot to digest, 0:21:42.000 --> 0:21:44.640 but it's kind of humming the same tunes as other 0:21:44.720 --> 0:21:48.240 results that we've seen earlier, where the consumer is slowing, 0:21:48.640 --> 0:21:51.760 spending is slowing, and hence the results are much weaker 0:21:51.760 --> 0:21:55.720 than expected. Bloomberg Intelligence analysts put Um Goyles says Amazon's 0:21:55.760 --> 0:21:59.399