WEBVTT - Bloomberg Daybreak: January 28, 2022 - Hour 1 (Radio) 0:00:03.360 --> 0:00:06.800 Live from the Bloomberg Interacted Burger Studios is Bloomberg day 0:00:06.800 --> 0:00:11.000 Break for Friday, January two. Coming up this hour, The 0:00:11.039 --> 0:00:15.200 Northeast races for a powerful winter storm. Apple shares rally 0:00:15.280 --> 0:00:18.680 after sales top estimates, shares of robin Hood plunge on 0:00:18.720 --> 0:00:22.000 week earnings, led by drops in Crypto training, and Toyota 0:00:22.200 --> 0:00:24.680 is back on top, reclaiming the mantel of the world's 0:00:24.720 --> 0:00:28.600 top selling carmaker. Thousands will gather this morning at St. 0:00:28.640 --> 0:00:32.120 Patrick's for the funerable rookie police officer gunned down along 0:00:32.120 --> 0:00:35.519 with his partner. I'm John Sucker. Details straight ahead, I'm 0:00:35.560 --> 0:00:39.120 John Stashtower and sports, The Rangers, Islanders and Devils all lost, 0:00:39.200 --> 0:00:42.040 Raphael the Dallas reached the finals of the Australian Open. 0:00:44.080 --> 0:00:48.640 That's all straight ahead on Bloomberg day Break on Bloomberg eleven, Treeo, 0:00:48.760 --> 0:00:53.159 New York, Bloomberg one, Washington, d C, Bloomberg one oh 0:00:53.240 --> 0:00:57.960 six one, Boston, Bloomberg nine sixties, San Francisco, Sirius XM 0:00:58.000 --> 0:01:01.240 one nineteen and around the world Old on Bloomberg Radio 0:01:01.360 --> 0:01:07.839 dot Com and via The Bloomberg Business. A good morning. 0:01:07.840 --> 0:01:11.160 I'm Nathan Hager, and I'm Karen Moscow. US Dock Index 0:01:11.240 --> 0:01:14.400 futures are little change this morning. We are coming up 0:01:14.400 --> 0:01:15.960 to five out one on Wall Street, and we checked 0:01:15.959 --> 0:01:19.240 the markets every fifteen minutes throughout the trading day on Bloomberg. 0:01:19.319 --> 0:01:22.000 Right now, SMP futures and DOWN futures are a little change. 0:01:22.040 --> 0:01:25.880 Nowsday futures up sixty two. The decks in Germany is 0:01:25.920 --> 0:01:28.400 down one and a half percent. Ten year treasury down 0:01:28.480 --> 0:01:31.400 nine thirty seconds. You at one point eight three percent, Nathan, 0:01:31.480 --> 0:01:33.840 all right, Karen, we'll have more on the markets shortly. First, 0:01:33.880 --> 0:01:36.640 a powerful storm is bearing down on the northeast with 0:01:36.760 --> 0:01:40.640 the promise of snow over the weekend. Bloomberg meteorologist Rob 0:01:40.680 --> 0:01:43.600 Carroll and joins US Now with the details. What's looking like, Rob, 0:01:44.200 --> 0:01:46.240 The storms that's going to be developing off the North 0:01:46.240 --> 0:01:50.320 Carolina coast later today and developing explosively tomorrow off the 0:01:50.360 --> 0:01:52.000 coast of New England is going to produce quite a 0:01:52.040 --> 0:01:54.760 bit of snow, especially for portions of New England. It 0:01:54.800 --> 0:01:56.760 looks like for the district in Baltimore, the snow which 0:01:56.760 --> 0:01:58.680 starts by late today and ends night only puts down 0:01:58.720 --> 0:02:00.920 about one to three inches. We'll be dealing with snow 0:02:00.960 --> 0:02:03.400 developing in the Tri State area during the evening hours, 0:02:03.400 --> 0:02:05.400 and it looks like the city is probably gonna pick 0:02:05.440 --> 0:02:07.480 up about six to ten inches, with areas of Long 0:02:07.520 --> 0:02:10.480 Island seeing over a foot. New England gets the jackpot. 0:02:10.480 --> 0:02:13.120 The snow doesn't arrive until well after midnight tonight, but 0:02:13.240 --> 0:02:15.560 it comes down hard at times tomorrow and it's gonna 0:02:15.560 --> 0:02:17.680 be very windy. Parts of New England will seat well 0:02:17.680 --> 0:02:19.840 and excessive a foot all right, Rob, So when do 0:02:19.880 --> 0:02:22.200 you think the snow is gonna end? The storm will 0:02:22.240 --> 0:02:24.840 wind down in the district probably after midnight tonight went 0:02:24.880 --> 0:02:26.920 to three inches. Looks likely for the city it's gonna 0:02:26.960 --> 0:02:29.960 wind down late in the afternoon early evening on Saturday. 0:02:30.160 --> 0:02:32.040 And from Boston, we're talking about the snow ending not 0:02:32.120 --> 0:02:34.360 until the early morning hours of Sunday, and again there 0:02:34.440 --> 0:02:37.960 was probably over a foot in Boston. I'm Rob Caroline Bloomberg. Daybreak, 0:02:38.200 --> 0:02:39.880 All right, Rob, thank you, and of course I'll be 0:02:39.960 --> 0:02:42.720 checking back in with you to get the latest all morning. 0:02:42.760 --> 0:02:45.080 Now to the markets where shares of Apple are front 0:02:45.160 --> 0:02:47.760 end center there at more than four percent in early 0:02:47.840 --> 0:02:50.720 trading after sales that beat estimates. They get the details 0:02:50.720 --> 0:02:54.000 from Bloomberg Shirley Pellett. It's a sign Apple was able 0:02:54.040 --> 0:02:56.880 to work through a supply chain crunch fueled by the 0:02:56.919 --> 0:03:02.120 pandemic and chip shortages. The surprising strong results suggested fears 0:03:02.160 --> 0:03:06.560 of supply upheaval were overblown. Apple CEO Tim Cook had 0:03:06.600 --> 0:03:09.760 worn late last year the shortages could cost a company 0:03:09.800 --> 0:03:13.040 more than six billion dollars in sales during the all 0:03:13.080 --> 0:03:16.919 important holiday period, but the tech giant navigated the crisis 0:03:17.160 --> 0:03:19.920 and benefited from a flood of new products, including the 0:03:20.240 --> 0:03:24.720 iPhone thirteen, Apple Watch Series seven, and updated Max in 0:03:24.840 --> 0:03:28.360 New York, Charlie Pellett Bloomberg Daybreak. All right, Charlie, thanks 0:03:28.360 --> 0:03:30.480 down the flip side of earnings this morning. Look at 0:03:30.480 --> 0:03:33.560 shares of Robin Hood. They're down more than thirteen percent 0:03:33.639 --> 0:03:36.800 in the pre market after posting disappointing results pretty much 0:03:36.840 --> 0:03:39.400 across the board. Let's get the latest life from Bloomberg's 0:03:39.480 --> 0:03:41.680 Ornit a Young Good morning or Nita, Good morning, Nathan. 0:03:41.800 --> 0:03:44.320 A year after Robin had found itself at the center 0:03:44.360 --> 0:03:47.440 of a meme stock frenzy, it's now facing challenges that 0:03:47.480 --> 0:03:51.000 could be more difficult to overcome. With fourth quarter revenue 0:03:51.040 --> 0:03:54.080 and losses that were worse than expected, and the hits 0:03:54.080 --> 0:03:57.400 came from all directions. Steeper net loss, lower monthly active 0:03:57.520 --> 0:04:01.880 users and options, and cryptocurrency trading lipped below third quarter levels. 0:04:02.200 --> 0:04:05.480 That's not all, robin Hood says. Operating expenses are expected 0:04:05.480 --> 0:04:09.080 to rise fifteen to twenty percent this year. Robin Hood 0:04:09.120 --> 0:04:11.960 was already down close to seventy Since it's July I 0:04:12.040 --> 0:04:14.960 p O and this morning, shares are down another thirteen 0:04:15.080 --> 0:04:17.840 percent in the pre market. Live in New York, I'm 0:04:17.839 --> 0:04:20.320 gonna need a young Bloomberg Daybreak re Ney to thank you. 0:04:20.400 --> 0:04:22.520 The recent text sell off has taken a bite out 0:04:22.560 --> 0:04:25.960 of Mark Zuckerberg's fortune, and now Warren Buffett has surpassed 0:04:25.960 --> 0:04:29.600 the Facebook CEO. On Bloomberg's Billionaire's Index began. More on 0:04:29.680 --> 0:04:32.400 that from Bloomberg's Don Christner. It's a reminder of the 0:04:32.520 --> 0:04:36.000 enduring power of Buffet's approach to value investing. It also 0:04:36.040 --> 0:04:39.280 reflects a precipitous decline in tech stocks since the beginning 0:04:39.279 --> 0:04:43.160 of the year. Since then, Zuckerberg, co founder of Meta Platforms, 0:04:43.200 --> 0:04:46.800 has lost fifteen billion dollars, and the richest person in 0:04:46.839 --> 0:04:49.400 the world, Elon Musk, has seen his net worth fall 0:04:49.560 --> 0:04:53.279 by fifty four billion. The relative resilience has been in 0:04:53.400 --> 0:04:57.520 value the bedrock of Buffet's investment philosophy. His Berkshire Hathaway 0:04:57.560 --> 0:05:01.000 has outperformed TEX so far this year, declining just four. 0:05:01.320 --> 0:05:06.840 Tech is down in New York on Doug Prisoner, Bloomberg Daybreak. 0:05:06.920 --> 0:05:08.640 Thanks Doug, and you can blame some of that Tech 0:05:08.720 --> 0:05:11.120 weakness on the Fed, as investors now brace for a 0:05:11.160 --> 0:05:14.120 possible five rate hikes this year. This morning, there is 0:05:14.160 --> 0:05:17.320 an important economic reading that the Central Bank watches closely, 0:05:17.440 --> 0:05:20.880 the Employment cost Index, and today's reading could be another 0:05:20.920 --> 0:05:23.679 hot one. Let's get more from Bloomberg's Viney del judas 0:05:24.000 --> 0:05:27.560 everyone likes a fatter paycheck, and the third quarter employment 0:05:27.560 --> 0:05:30.680 cost index posted a record increase at the same time 0:05:30.720 --> 0:05:34.080 we all pay as businesses lift prices to recover labor costs. 0:05:34.360 --> 0:05:37.480 Bloomberg Economics, as today's number could be a keeper as 0:05:37.520 --> 0:05:41.760 inflation rages. It's more reliable than average gy really earnings 0:05:41.960 --> 0:05:46.720 as it's less affected by specific industry trends. Judai s 0:05:46.720 --> 0:05:49.479 Bloomberg Daybreak, Many thank you. Back to the markets now, 0:05:49.520 --> 0:05:52.200 Oil trading near its highest level in seven years, and 0:05:52.279 --> 0:05:55.480 fact crude is headed for a sixth straight weekly gain traders. 0:05:55.480 --> 0:05:58.719 A robust demand plus heightened geopolitical risks are causing the 0:05:58.839 --> 0:06:01.840 gains and checking prices Now nine x Scrude oil is 0:06:01.880 --> 0:06:03.799 up a third of upper cent or thirty one cents 0:06:03.800 --> 0:06:06.560 at eighty six dollars two cents a barrel. Brent is 0:06:06.640 --> 0:06:09.560 up four ten percent at eighty nine dollars seventy three cents, 0:06:09.560 --> 0:06:11.640 certainly a far cry from the height of the pandemic 0:06:11.720 --> 0:06:14.640 here and when oil touched thirty three dollars of barrel 0:06:14.920 --> 0:06:17.720 speaking of the pandemic, looks like Hong Kong is making 0:06:17.760 --> 0:06:21.760 a move to ease COVID restrictions, shortening quarantine requirements for 0:06:21.800 --> 0:06:26.120 incoming travelers. Bloomberg Daybreak Asia anchor Brian Curtis has the details. 0:06:26.400 --> 0:06:29.400 The Hong Kong government is reducing the quarantine from twenty 0:06:29.400 --> 0:06:32.320 one days to fourteen. That's still about the toughest in 0:06:32.360 --> 0:06:34.919 the world, and Hong Kong is maintaining a ban on 0:06:35.040 --> 0:06:38.800 people arriving from eight countries, including the US, the UK 0:06:39.000 --> 0:06:42.880 and Australia. The shorter quarantine period will begin February five. 0:06:43.279 --> 0:06:46.080 After fourteen days in a hotel room, people will have 0:06:46.120 --> 0:06:50.680 to self monitor for seven days. Brian Curtis Sploomberg Daybreak, Brian, 0:06:50.720 --> 0:06:53.240 thank you staying in Asia right now. Toyota finished out 0:06:54.000 --> 0:06:57.360 one is the world's top selling automaker again. The Japanese 0:06:57.440 --> 0:06:59.880 company kept production on track despite a year of so 0:07:00.000 --> 0:07:03.360 Apply chain turmoil. Toyota and its subsidiary so It ten 0:07:03.440 --> 0:07:06.559 and a half million vehicles at ten percent increase. Runner 0:07:06.600 --> 0:07:10.000 out Volkswagen Soldier shy of nine million s and p 0:07:10.200 --> 0:07:13.880 futures again. Little change this morning and straight ahead your 0:07:13.960 --> 0:07:17.800 latest local headlines plus a check of sports. And this 0:07:18.200 --> 0:07:25.160 is Bloomberg. Thanks Taring. It's five oh seven on Wall Street, 0:07:25.200 --> 0:07:29.240 snow showers already in Central Park, thirty degrees. Racing for 0:07:29.320 --> 0:07:32.480 even more from this northeastern headed our way details coming 0:07:32.600 --> 0:07:35.240 up first John Tucker with more on what's going on 0:07:35.280 --> 0:07:38.080 in New York and around the world. Happy Friday, John 0:07:38.200 --> 0:07:40.600 and Nathan. New York City police officers will give a 0:07:40.640 --> 0:07:44.200 final salute today to Jason Rivera, a rookie cock gunned 0:07:44.200 --> 0:07:47.520 down with his partner a week ago. A funeral mass 0:07:47.560 --> 0:07:50.560 planned at St. Patrick's Cathedral for the officer, who, at 0:07:50.560 --> 0:07:53.680 age twenty two, was recently married and barely into a 0:07:53.840 --> 0:07:57.680 second year of service. Cardinal Timothy Doland will preside over 0:07:57.720 --> 0:08:01.080 the service. The city's top leaders will attend. Rivera and 0:08:01.160 --> 0:08:05.160 a partner officer, Wilbert Mora, were fatally wounded January one 0:08:05.320 --> 0:08:08.160 by a gunman who ambushed them in a hallway as 0:08:08.200 --> 0:08:11.800 they responded to a family dispute. Moura's funerals being held 0:08:11.880 --> 0:08:14.760 next week. I had a call at Ukraine's leader. President 0:08:14.760 --> 0:08:19.280 Biden has reaffirmed total support the story from Bloomberg's at Baxter. 0:08:20.000 --> 0:08:22.520 In a White House readout, Biden underscored the commitment to 0:08:22.640 --> 0:08:27.520 Ukraine's sovereignty and territorial integrity. Biden said he's exploring other 0:08:27.680 --> 0:08:32.440 macro economic support and a decisive response of russia troops invade. 0:08:32.880 --> 0:08:35.960 But as communications continue to go back and forth, State 0:08:36.000 --> 0:08:39.880 Department Deputy Secretary Wendy Sherman says Russia continues to move 0:08:40.280 --> 0:08:45.040 at the border. Certainly see every indication that he is 0:08:45.080 --> 0:08:48.400 going to use military force. Sherman says sometime between now 0:08:48.400 --> 0:08:51.600 in mid February. Russia says, meanwhile, it will need time 0:08:51.640 --> 0:08:54.800 to look at US proposals. In San Francisco, I'm at 0:08:54.800 --> 0:08:58.040 Baxter Bloomberg Daybreak, President Biden says he'll name his choice 0:08:58.040 --> 0:09:01.560 to replace retiring Supreme Court Justice Stephen Bryer by the 0:09:01.679 --> 0:09:04.440 end of February, and I'm saying his retirement. At the 0:09:04.440 --> 0:09:08.280 White House yesterday, Brier reflected on his decades on the bench. 0:09:08.840 --> 0:09:11.280 When you sit there and see all those people in 0:09:11.360 --> 0:09:15.080 front of you, people that are so different in what 0:09:15.120 --> 0:09:19.160 they think, and yet they've decided to help solve their 0:09:19.240 --> 0:09:23.120 major differences under law. President Biden intends to nominate a 0:09:23.160 --> 0:09:27.160 black woman to replace Brier. Former Alaska Governor Sarah Palin 0:09:27.320 --> 0:09:29.800 was spotted dining out again at a New York City 0:09:29.800 --> 0:09:33.559 restaurant two days after testing positive for the coronavirus. The 0:09:33.720 --> 0:09:36.760 visit to the m scale ilios drew attention from photo 0:09:36.800 --> 0:09:40.600 snapping bystanders. Palin had also dined at the same restaurant 0:09:40.679 --> 0:09:44.680 on Saturday, despite his city rule requiring patrons dining indoors 0:09:44.679 --> 0:09:48.600 at restaurants to be vaccinated. Global News twenty four hours 0:09:48.600 --> 0:09:51.160 a day on air and on Bloomberg Quicktake were powered 0:09:51.200 --> 0:09:53.920 by more than twenty seven hundred journalists in analysts in 0:09:54.040 --> 0:09:56.840 more than one hundred twenty countries. I'm John Tucker, This 0:09:57.120 --> 0:10:04.400 is Bloomberg. Nathan Okay, John, thank you. Coming up to 0:10:04.480 --> 0:10:06.600 five ten on Wall Street Time for the Bloomberg Sports 0:10:06.640 --> 0:10:09.200 Up Day. Good morning, Johns Tesshower, Good morning, Nathan Raphael 0:10:09.320 --> 0:10:11.960 the DA only one of tennis's big three who's playing 0:10:11.960 --> 0:10:16.400 the Australian Open. Roger Federer injured. Novak Djokovic deported Nadal 0:10:16.840 --> 0:10:19.800 into the finals, beat Mateo Barrettini in the four set semifinal. 0:10:19.840 --> 0:10:22.280 The other semi going on now Ddale Medved had won 0:10:22.320 --> 0:10:25.120 the first set with Stefano sits a pass. Only one 0:10:25.160 --> 0:10:27.400 says that Dal won the Assie Open that was thirteen 0:10:27.520 --> 0:10:31.599 years ago. If he wins Sunday, he surpasses Federer and Djokovic. 0:10:31.640 --> 0:10:35.120 Currently all three have one twenty Grand slams. Rangers in 0:10:35.200 --> 0:10:38.000 Columbus up to nothing five minutes in but then down 0:10:38.080 --> 0:10:41.600 four to two. Blue Jackets won five three. Artemi Panarin 0:10:41.720 --> 0:10:43.839 was in on all three Ranger goals. Islanders lost to 0:10:43.880 --> 0:10:45.960 the King three to two, so l A went two 0:10:45.960 --> 0:10:48.640 and one touring in the New York area. The Devil's 0:10:48.679 --> 0:10:51.079 lost in Tampa three two. They dropped six to seven 0:10:51.480 --> 0:10:53.800 at the Garden Tonight. It's the Rangers in the Minnesota 0:10:53.840 --> 0:10:56.800 Wild and Henry Lunkwist will have his jersey number thirty 0:10:56.880 --> 0:10:59.920 retired in advance. He went on the Tonight Show with 0:11:00.040 --> 0:11:03.360 Jimmy Fallon. It's amazing. It's a surreal feeling, you know, 0:11:03.559 --> 0:11:08.000 to have. Obviously, the moment itself is going to be incredible, 0:11:08.160 --> 0:11:12.400 but Olson opportunity to bring all the people uh to 0:11:12.520 --> 0:11:15.280 Madison Square, guard people that meant so much to me 0:11:15.559 --> 0:11:19.680 throughout my journey, friends, family, and most importantly all the 0:11:19.679 --> 0:11:23.160 fans to support me throughout my career. It's gonna be amazing. That. 0:11:23.280 --> 0:11:26.240 Plus fifteen years the Rangers starting goalie. Two NFL teams 0:11:26.320 --> 0:11:29.040 hired new coaches, Nathaniel Hackett and Denver. He's been the 0:11:29.080 --> 0:11:33.120 offensive praater in Green Bay, Chicago, going with Indianapolis assistant 0:11:33.200 --> 0:11:36.400 Matt Ebert Floss. The giants said to me deciding between 0:11:36.400 --> 0:11:39.400 Brian Dable and Brian Flora, as a decision could come 0:11:39.400 --> 0:11:42.920 today or tomorrow. John stash were Bloomberg Sports, Nathan Okay, 0:11:42.960 --> 0:11:45.880 John thanks SMP futures right now down three point, Staff 0:11:45.920 --> 0:11:49.319 futures down seventy nine. Nastack futures are higher, up fifty 0:11:49.440 --> 0:11:53.720 one points. Buoyed by Apple earnings, Apple shares up four 0:11:53.800 --> 0:11:57.240 percent in the pre market after sales and revenue that 0:11:57.559 --> 0:12:00.720 clawberd animals testaments will dig into the numbers. Next with 0:12:00.840 --> 0:12:04.640 Gene Munster, co founder of bloom Ventures. This is Bloomberg 0:12:07.480 --> 0:12:09.880 Bloomberg eleven three oh weather. You know what's coming. Lots 0:12:09.920 --> 0:12:12.240 of snow six to ten inches possible in the city, 0:12:12.240 --> 0:12:14.760 more than a foot on Long Island tonight into tomorrow 0:12:14.920 --> 0:12:17.880 night with the northeaster on the way. Currently snow and 0:12:18.040 --> 0:12:24.240 thirty degrees in Central Park. Markets, headlines and breaking news 0:12:24.320 --> 0:12:27.000 twenty four hours a day at Bloomberg dot Com, The 0:12:27.000 --> 0:12:31.120 Bloomberg Business Atland at Bloomberg Quicktake, This is a Bloomberg 0:12:31.200 --> 0:12:40.320 Business Flash and I'm Karen Moscow. Nasdack future is moving 0:12:40.400 --> 0:12:43.640 higher this morning after strong earnings from Apple, while European 0:12:43.720 --> 0:12:47.079 shares are falling, extending a drop after Germany's economy shrank 0:12:47.120 --> 0:12:49.920 more than expected. We checked the markets every fifteen minutes 0:12:49.960 --> 0:12:52.199 throughout the trading day on Bloomberg. Right now, it's in 0:12:52.240 --> 0:12:55.200 p futures. They're lower, down about eight points, and death 0:12:55.200 --> 0:12:58.240 futures are down one hundred nine. Well, Nasdack futures are higher, 0:12:58.320 --> 0:13:01.120 up forty two the daks to Germany's down one point 0:13:01.160 --> 0:13:03.920 seven percent. A ten year treasury down ten thirty seconds. 0:13:04.200 --> 0:13:06.240 At one point three percent. They yield on the two 0:13:06.320 --> 0:13:09.240 year one point to one percent. Nine Max Screwed Oil 0:13:09.280 --> 0:13:11.280 is up six tens percent or fifty one cents at 0:13:11.320 --> 0:13:14.319 eighty seven dollars, thirteen cents of Barrel Comic School down 0:13:14.320 --> 0:13:16.760 two tenths per cent or four dollars at seventeen ninety one. 0:13:16.800 --> 0:13:20.400 Announced the euro one point five against the dollar, British 0:13:20.400 --> 0:13:22.840 found one point three three seven six and the end 0:13:22.840 --> 0:13:25.680 at one fifteen point six three Bitcoin and this morning 0:13:25.720 --> 0:13:28.959 moving higher at thirty six thousand, five hundred fifty dollars 0:13:29.000 --> 0:13:32.000 and Apple shares this morning up four percent. That's a 0:13:32.000 --> 0:13:34.600 Bloomberg business flash. Now, here's Michael Barr with more on 0:13:34.640 --> 0:13:37.040 what's going on around up. Here's John Tucker with more 0:13:37.080 --> 0:13:39.200 on what's going on around the world. John, Good morning, 0:13:39.280 --> 0:13:42.560 Good morning. Karen Rushes. Foreign Ministers says the American proposal 0:13:42.600 --> 0:13:47.720 to defuse tensions with Ukraine contains rational elements. President Biden's 0:13:47.800 --> 0:13:50.480 his will name his choice to replace retiring Supreme Court 0:13:50.600 --> 0:13:53.600 Justice Stephen Bryer by the end of February, and the 0:13:53.600 --> 0:13:58.080 Biden administration says it's recommended changes to China's requirements for 0:13:58.200 --> 0:14:02.880 COVID nineteen quarantine and ten sting among American diplomats, sports 0:14:03.000 --> 0:14:07.080 rangers and Islanders Devils all lose basketball. The Warriors beat 0:14:07.080 --> 0:14:11.040 the Timberwolves tennis. Raphael Nadal advances to the finals of 0:14:11.080 --> 0:14:13.959 the Australian Open. Global News twenty four hours a day 0:14:13.960 --> 0:14:16.839 on are Ind on Bloomberg Quicktake Power by more than 0:14:16.880 --> 0:14:19.320 twenty seven hood of journalists and analysts and more than 0:14:19.360 --> 0:14:22.800 one hundred twenty countries On John Soccer. This is Bloomberg. Nathan, 0:14:22.920 --> 0:14:25.240 all right, John, Thanks, It's five nineteen on Wall Street 0:14:25.280 --> 0:14:28.440 Live from the Bloomberg Interactive Broker Studios. This is Bloomberg 0:14:28.520 --> 0:14:31.560 Daybreak with tech earnings in focus this morning. Obviously, the 0:14:31.600 --> 0:14:35.800 big story is Apple, and the shares are surging once 0:14:35.840 --> 0:14:39.120 again this morning, up nearly four percent after the iphonemaker 0:14:39.200 --> 0:14:42.680 came out with revenue and sales that blew past Wall 0:14:42.680 --> 0:14:46.280 Street estimates even in a supply chain crunch. Let's get 0:14:46.280 --> 0:14:48.440 more on these results now. Gene Munster is with US 0:14:48.520 --> 0:14:51.640 co founder of Luke Ventures. Gene, Good morning, eleven percent 0:14:51.800 --> 0:14:54.600 sales jump in the quarter. Does that surprise you at all? 0:14:56.640 --> 0:14:59.240 At first? It did, but as I kind of stepped back, 0:14:59.320 --> 0:15:02.720 I should have been surprised. They make the world's greatest 0:15:02.720 --> 0:15:05.640 consumer products. Arguably, I think there's really show it and 0:15:05.640 --> 0:15:08.320 this is what happens when you do that. There is 0:15:08.360 --> 0:15:11.480 an asterisk next to that eleven percent growth. If not 0:15:11.640 --> 0:15:14.640 for the supply chain headwind, they would have grown at 0:15:14.720 --> 0:15:19.120 eighteen percent off of tough comps. And so I've I've 0:15:19.200 --> 0:15:22.720 seen a lot of Apple quarters. I've studied this company 0:15:22.760 --> 0:15:25.240 for twenty plus years, and there's so many good quarters. 0:15:25.240 --> 0:15:28.280 They just kind of, at some level just blur together. 0:15:28.640 --> 0:15:31.880 And there's a recency biased here that I'm trying to 0:15:31.880 --> 0:15:35.600 guard against. But ultimately, I think this is just such 0:15:35.640 --> 0:15:38.800 a memorable quarter because they did it with so many 0:15:38.840 --> 0:15:42.320 headwinds against them and had some positive outlooks for March. 0:15:42.440 --> 0:15:46.120 Quite quite quite memorable. Does this give give you a 0:15:46.240 --> 0:15:49.240 reason to look at the tech sector more broadly and 0:15:49.280 --> 0:15:52.200 think maybe the sell off that we've seen in recent 0:15:52.280 --> 0:15:58.080 days might have been overdone. There is a moment, a 0:15:58.120 --> 0:16:01.640 fleeting moment, where I thought, just the relief that the 0:16:01.840 --> 0:16:04.960 icon did well and that just well, it did phenomenal 0:16:05.040 --> 0:16:06.920 in this and I felt like that was a relief. 0:16:07.520 --> 0:16:10.000 I do. I think that that's going to be a 0:16:10.000 --> 0:16:12.120 relief today tomorrow, But I think if you kind of 0:16:12.160 --> 0:16:13.960 look at the broader arc of where this is going, 0:16:14.000 --> 0:16:16.800 and I'm drifting outside of my area of expertise into 0:16:17.200 --> 0:16:20.440 monetary policy here, but the I still think there's some 0:16:20.480 --> 0:16:22.480 work that the FED needs to do. I think that 0:16:22.600 --> 0:16:26.480 tech stocks in particular are more sensitive to interest rates. Um, 0:16:26.520 --> 0:16:30.440 we're talking about some inflation numbers next month, and ultimately 0:16:30.480 --> 0:16:32.720 I think that that could continue to pressure some of 0:16:32.720 --> 0:16:36.040 these tech companies. But this I think that that kind 0:16:36.040 --> 0:16:38.760 of misses the broader point. And to your question is 0:16:38.800 --> 0:16:40.960 that we're going to start to put a bottom in 0:16:41.040 --> 0:16:43.280 some of these tech names, probably over the next three months. 0:16:43.320 --> 0:16:45.240 And I think at the point where the FED starts 0:16:45.320 --> 0:16:48.240 raising rates, I suspect that we're going to start to 0:16:48.280 --> 0:16:51.600 see uh, you know appleby properly rewarded. They won't get 0:16:51.600 --> 0:16:53.600 full credit for this quarter. If they did the stock, 0:16:53.600 --> 0:16:56.000 would you have twelve percent right now? They're not going 0:16:56.040 --> 0:16:58.480 to get it. Eventually, I think they will be credited 0:16:58.520 --> 0:17:02.200 for it. How do you see Apple navigating this quarter 0:17:02.360 --> 0:17:05.679 and going forward into two. You've got to think that 0:17:05.840 --> 0:17:09.800 supply chains are going to continue to be a headwind 0:17:09.840 --> 0:17:12.840 to a pretty great extent going forward, at least in 0:17:12.880 --> 0:17:16.920 the mid term for sure, and you know they talked 0:17:16.960 --> 0:17:21.119 about the impact is lessening. I think that that buries 0:17:21.200 --> 0:17:23.840 the headline, which it's still a measurable impact. In the 0:17:23.880 --> 0:17:26.600 March quarter, probably about four percent of their revenue they're 0:17:26.600 --> 0:17:29.280 going to miss out because of the supply chain. What 0:17:29.280 --> 0:17:31.720 what is uh in the case of Apple, what is 0:17:31.760 --> 0:17:34.800 surprises that even in holiday quarter they still are able 0:17:34.840 --> 0:17:38.000 to capture that revenue that gets delayed in the in 0:17:38.040 --> 0:17:41.120 the subsequent quarter. And so when you see these delays 0:17:41.200 --> 0:17:43.840 the impact of Apple, they give preferential treatment with their 0:17:43.840 --> 0:17:46.840 suppliers and and customers are willing to wait. In the 0:17:46.880 --> 0:17:49.120 case of iPads, right now, the lead times in six 0:17:49.160 --> 0:17:51.920 countries are forty plus stays usually their same business day 0:17:51.960 --> 0:17:55.240 at this point. So it is a um it's Apple 0:17:55.520 --> 0:17:57.840 is has the luxury of being first in line, and 0:17:57.920 --> 0:18:00.639 also customers allove their products. At think as far as 0:18:00.680 --> 0:18:03.520 the broader supply chain, it's still going to be messy 0:18:03.600 --> 0:18:06.440 and um, you know, most people are thinking this goes 0:18:06.480 --> 0:18:09.960 through uh two thousand twenty two for this year, who knows, 0:18:10.359 --> 0:18:12.480 maybe it's one, maybe it's two years. And I think 0:18:12.520 --> 0:18:14.600 it's still going to be kind of nagging at these 0:18:14.600 --> 0:18:17.800 earnings calls over the next few quarters. Looking at the 0:18:17.800 --> 0:18:21.680 tech sector more broadly, Gene, why are tech stocks affected 0:18:21.720 --> 0:18:25.240 so much by higher interest rates the tightening environment that 0:18:25.280 --> 0:18:30.240 we're expecting. There's two classes. The first class is kind 0:18:30.240 --> 0:18:33.200 of the big cap they have been affected, but it's 0:18:33.240 --> 0:18:35.920 been relatively modest there, you know, it's kind of down 0:18:36.000 --> 0:18:40.239 in similar amount that the nazeg is down something like that. Uh. 0:18:40.280 --> 0:18:42.919 And then there's the other class UH as kind of 0:18:42.960 --> 0:18:46.080 these earlier less profitable companies. And the answer questions the 0:18:46.160 --> 0:18:50.439 reason why is that every uh percentage increase in the 0:18:50.520 --> 0:18:53.639 interest rates has an impact on how investors value these companies. 0:18:53.720 --> 0:18:57.840 There that's the classic discounted cash well, and usually a 0:18:57.880 --> 0:19:00.440 one percent increase in interest rates has some between a 0:19:00.520 --> 0:19:03.840 ten and negative impact on earnings. And so when you 0:19:03.840 --> 0:19:07.320 have companies that's the simple reason why is the tech 0:19:07.359 --> 0:19:10.760 companies are more sensitive because they've got more variability in 0:19:10.760 --> 0:19:15.760 their earnings. Therefore they're more sensitive to interest rate increases. Well, 0:19:15.800 --> 0:19:17.320 at the moment, we are seeing a bit of a 0:19:17.359 --> 0:19:21.159 tech bounce this morning on the back of those very 0:19:21.200 --> 0:19:25.560 positive Apple earnings. Gene Munster, as always, thanks for the insights. 0:19:25.560 --> 0:19:30.000 Gene Munster is co founder of Loop Ventures, and looking 0:19:30.080 --> 0:19:33.959 at the market broadly mixed picture, but tech is on 0:19:34.000 --> 0:19:38.040 the rise, with SMP futures right now down almost four points, 0:19:38.040 --> 0:19:41.600 STOW futures are down seventy four, NASAC futures higher by 0:19:41.760 --> 0:19:44.200 fifty seven points, and again, Apple shares in the pre 0:19:44.280 --> 0:19:47.600 market are up four percent. The ten your treasury right 0:19:47.640 --> 0:19:51.399 now down nine seconds, the yield one three percent, and 0:19:51.480 --> 0:19:54.280 the yield on the two year one point to one. 0:19:55.160 --> 0:19:58.240 Just ahead, getting ready for a major winter storm in 0:19:58.240 --> 0:20:02.080 the Northeast. We'll check your tops Storia's next. You're listening 0:20:02.200 --> 0:20:08.879 to Bloomberg day Break Bloomberg eleven three oh weather that 0:20:08.960 --> 0:20:11.080 Northeastern is gonna bring a six to ten inches of 0:20:11.119 --> 0:20:13.239 snow in the city, more than a foot possible on 0:20:13.240 --> 0:20:17.320 Long Island to the four in New Jersey. Right now 0:20:17.640 --> 0:20:23.639 snow thirty degrees in Central Park. Broadcasting live from the 0:20:23.760 --> 0:20:28.000 Bloomberg Interactive Broker Studio in New York. Bloomberg Living Free 0:20:28.280 --> 0:20:32.200 to Washington, d C. Bloomberg ninety one to Boston, Bloomberg 0:20:32.240 --> 0:20:35.000 one O six one to San Francisco Bloomberg and I'm 0:20:35.040 --> 0:20:37.840 sixty to the country, Sirius XM to the one nine 0:20:37.880 --> 0:20:41.400 team and around the globe to Bloomberg Business in Bloomberg 0:20:41.480 --> 0:20:50.600 Radio dot Com. This is Bloomberg Daybreak. It's five thirty 0:20:50.640 --> 0:20:53.120 on Wall Street. Good morning. I'm Nathan Hagar and I'm 0:20:53.160 --> 0:20:56.000 camerin Moscow, or just about four hours away from the 0:20:56.040 --> 0:20:58.040 open of US trading. Let's get you up to date 0:20:58.040 --> 0:20:59.840 of the news you need to know at this hour. 0:21:00.240 --> 0:21:03.800 That powerful snowstorm is heading for the northeast. Stay tuned 0:21:03.800 --> 0:21:07.040 for the latest for the Bloomberg meteorologist Rob Caroline in 0:21:07.119 --> 0:21:10.359 just a moment. But first nasday futures are higher thanks 0:21:10.400 --> 0:21:12.639 to Apple. The stock is up four percent in early 0:21:12.680 --> 0:21:15.880 trading after sales that beat estimates. Ed Ludlow has more 0:21:15.920 --> 0:21:18.760 from our Bloomberg nine sixty news room in San Francisco. 0:21:19.000 --> 0:21:21.800 Apple recorded record revenue of the hundred and twenty four 0:21:21.840 --> 0:21:25.040 billion dollars in the fiscal first quarter, record sales across 0:21:25.040 --> 0:21:29.600 segments like the iPhone, wearables, mac and services. There was 0:21:29.680 --> 0:21:33.760 disruption in the supply chain, particularly with semiconductors that largely 0:21:33.800 --> 0:21:38.400 impacted the iPad where sales missed estimates. But things look 0:21:38.480 --> 0:21:41.440 bright for Apple as they go into a big year 0:21:41.560 --> 0:21:45.919 in two Ed Ludlow Bloomberg News San Francisco. Alright ed 0:21:45.920 --> 0:21:47.919 thanks on the flip side. Shares of robin Hood are 0:21:48.000 --> 0:21:51.880 down fourteen percent this morning following disappointing earnings. Let's get 0:21:51.880 --> 0:21:54.720 the latest live from Bloomberg Junita Young, Branita Nathan. A 0:21:54.840 --> 0:21:57.080 year after robin had found itself at the center of 0:21:57.119 --> 0:22:00.600 a meme stock frenzy, it's now facing challenges that could 0:22:00.600 --> 0:22:03.760 be even more difficult to overcome, with fourth quarter revenue 0:22:03.800 --> 0:22:06.560 and losses that were worse than expected, and the hits 0:22:06.560 --> 0:22:09.679 came from all directions, a steeper knit loss, lower monthly 0:22:09.720 --> 0:22:13.720 active users and options in cryptocurrency trading slipped below third 0:22:13.800 --> 0:22:16.840