WEBVTT - Bloomberg Daybreak: July 29, 2022 - Hour 2 (Radio) 0:00:02.560 --> 0:00:05.800 My from the Bloomberg interactor Berger Studios. This is Bloomberg 0:00:05.880 --> 0:00:09.200 day Break for Friday, July twenty nine two. Coming up 0:00:09.200 --> 0:00:13.080 this hour, Nazzac Future's rally thanks to earnings from Amazon 0:00:13.160 --> 0:00:16.560 and Dapple, Intel and Roku share sell off on disappointing 0:00:16.640 --> 0:00:19.720 quarterly results. Big Oil in the spotlight this morning, with 0:00:19.760 --> 0:00:22.880 Exxon and Chevron reporting, and Jannet Yellen says the US 0:00:22.920 --> 0:00:26.200 economy is slowing, but not in a recession. The former 0:00:26.200 --> 0:00:28.920 New York State Supreme Court justice has been sentenced for 0:00:28.960 --> 0:00:32.000 taking bribes. Plus flooding in eastern Kentucky has left at 0:00:32.040 --> 0:00:35.040 least eight people dead. I'm Mike Lablar. More Ahead, I'm 0:00:35.080 --> 0:00:38.040 John Stash, Aaron Sports. Aaron Judge strikes again a home 0:00:38.120 --> 0:00:40.199 run bottom of the ninth inning. Give me the Yankee 0:00:40.280 --> 0:00:45.280 the one Nothing went over Kansas City. That's All's trendy 0:00:45.280 --> 0:00:49.240 Ahead on Bloomberg Daybreak on Bloomberg eleven three, on New York, 0:00:49.440 --> 0:00:54.080 Bloomberg ninety one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.400 --> 0:00:58.800 Bloomberg nine sixties and Francisco Sirius x M one nine team, 0:00:59.040 --> 0:01:01.960 and around the world on Bloomberg Radio dot Com and 0:01:02.120 --> 0:01:09.319 via the Bloomberg Business. Good morning, I'm Nathan Hagart and 0:01:09.360 --> 0:01:12.720 I'm Karen Moscow, and US stock index futures are rising 0:01:12.880 --> 0:01:14.760 this morning. We are coming up to six oh one 0:01:14.800 --> 0:01:16.759 on Wall Street, and we check the markets every fifteen 0:01:16.760 --> 0:01:19.559 minutes throughout the trading day. On Bloomberg. Right now, SNP 0:01:19.720 --> 0:01:22.600 futures are up thirty one points. Now Future is up 0:01:22.600 --> 0:01:25.920 eighty five and nasdack futures up one fifty four. That's 0:01:26.000 --> 0:01:29.120 up one point two percent. Ten year treasury down eleven 0:01:29.200 --> 0:01:31.840 thirty seconds. You two point seven one percent, and they 0:01:31.920 --> 0:01:34.880 yield on the two year two point eight nine percent, 0:01:34.959 --> 0:01:37.479 and nine mex screwed oil is of two point one 0:01:37.640 --> 0:01:40.880 percent Nathan, Karen. The big lift in nastack futures follows 0:01:40.880 --> 0:01:45.039 earnings from two tech giants. Let's begin with Amazon. Those 0:01:45.040 --> 0:01:49.600 shares are surging by twelve percent. The company reported revenue 0:01:49.640 --> 0:01:52.120 the top estimates and gave a strong sales forecast for 0:01:52.120 --> 0:01:55.880 the current quarter. Bloomberg Intelligence Senior retail analyst Punum Goyle says, 0:01:55.960 --> 0:01:59.080 it's quite a different story from another high profile retailer. 0:01:59.360 --> 0:02:01.800 We right now worried about what we saw earlier this 0:02:01.880 --> 0:02:06.280 week with Walpart taking down guidance as we had thought 0:02:06.320 --> 0:02:09.840 that Amazon has a different customer based. Amazon doesn't target 0:02:09.840 --> 0:02:13.160 the low income consumer, so we didn't think Walmart's rose 0:02:13.200 --> 0:02:16.440 would bleed into Amazon, and that's exactly what we saw today. 0:02:16.560 --> 0:02:20.120 Bloomberg Intelligence analists poom Goyle says Amazon added full and 0:02:20.200 --> 0:02:22.919 part time jobs at the slowest pace since tween, in 0:02:22.960 --> 0:02:26.760 an effort to cut costs well. Nathan Apple shares also higher. 0:02:26.760 --> 0:02:28.680 They're up more than two and a half percent. The 0:02:28.680 --> 0:02:33.080 company's revenue and profit narrowly topped estimates, with iPhone sales 0:02:33.080 --> 0:02:36.400 holding up better than expected. Tom Giles is an executive 0:02:36.400 --> 0:02:40.480 technology editor for Bloomberg News. The market took away that 0:02:40.800 --> 0:02:46.160 Apple so far is weathering the downturn relatively well um 0:02:46.240 --> 0:02:49.080 and they even though they missed on a couple of 0:02:49.120 --> 0:02:54.120 their different products, they did uh surpass wall streets projections 0:02:54.320 --> 0:02:58.120 on the iPhone, which is their biggest product, all important product. 0:02:58.320 --> 0:03:02.440 Bloomberg Tom Giles says the iPad also performed better than feared, 0:03:02.520 --> 0:03:06.919 though other products, including max and wearables, fell short of projections. 0:03:07.160 --> 0:03:09.920 On the flip side, carrying shares of Inteller down nine 0:03:09.919 --> 0:03:12.320 and a half percent in early trading. The chip maker's 0:03:12.360 --> 0:03:15.679 profit and sales missed estimates, and it's also slashing forecasts. 0:03:15.880 --> 0:03:19.280 More from Bloomberg's Charlie Pellett. The world's biggest maker of 0:03:19.280 --> 0:03:22.760 computer processors was weighed down by a steep drop in 0:03:22.840 --> 0:03:26.520 demand for data center chips and a steep decline in 0:03:26.680 --> 0:03:30.920 PC shipments after two years of growth. Spending on laptop 0:03:31.000 --> 0:03:35.440 and desktop machines is declining quickly as rising inflation is 0:03:35.520 --> 0:03:39.600 leading consumers to shy away from large purchases. The market 0:03:39.680 --> 0:03:43.280 for chips that power PCs is still Intel's biggest source 0:03:43.320 --> 0:03:46.320 of revenue and the cash needed to fund an ambitious 0:03:46.320 --> 0:03:49.840 attempt by CEO Pat Gelsinger to restore the company to 0:03:50.200 --> 0:03:55.240 semiconductor industry leadership in New York. Charlie Pellett, Bloomberg day Break. 0:03:55.360 --> 0:03:58.360 All right, Charlie, thank you. Even another stock getting hammered 0:03:58.400 --> 0:04:02.280 this morning. Roku shares are down more than twenty four percent. 0:04:02.560 --> 0:04:07.280 The maker of streaming TV devices reported disappointing second quarter results. 0:04:07.640 --> 0:04:10.760 Roku said advertisers are pulling back on spending due to 0:04:10.840 --> 0:04:14.160 economic concerns, and the earnings continue today. Karen with Big 0:04:14.200 --> 0:04:17.240 Oil in the spotlight. Bloomberg's Jeff Balinger reports X on 0:04:17.279 --> 0:04:20.960 Mobile and Chevron post quarterly results this morning. There could 0:04:21.000 --> 0:04:23.640 be a lot to like what X on Mobile reports. 0:04:23.680 --> 0:04:27.840 Bloomberg Intelligence says the company likely saw a substantial increase 0:04:27.839 --> 0:04:30.880 in net earnings from its refining unit. If that drove 0:04:30.880 --> 0:04:33.839 a major improvement and free cash flow, it could mean 0:04:33.960 --> 0:04:38.479 faster share by backs. Refinding improvements at Chevron likely lagged 0:04:38.480 --> 0:04:41.680 behind X on Mobile. The I says the company's balance 0:04:41.760 --> 0:04:44.560 sheet maybe in a net cash position before the end 0:04:44.600 --> 0:04:47.039 of the year if it continues to hold back on 0:04:47.160 --> 0:04:51.560 share repurchases. Jeff Bellinger, Bloomberg Day Break, Right, Jeff, thank 0:04:51.560 --> 0:04:53.839 you well. Turning to the economy. Now, there's a key 0:04:53.839 --> 0:04:56.240 report coming up before we wrap up the week. The 0:04:56.360 --> 0:04:59.800 University of Michigan issues it's National Consumer Sentiment Index for 0:05:00.080 --> 0:05:02.960 Law at ten am Wall Street Time and Bloomberg's Viney 0:05:03.000 --> 0:05:06.320 Down Judas has more. The Prairie report covering early July 0:05:06.400 --> 0:05:10.560 showed long term inflation expectations declined. At that time. At 0:05:10.640 --> 0:05:14.200 least the consumer surveyed anticipated prices would rise at an 0:05:14.279 --> 0:05:16.920 annual rate at two point eight percent over the next 0:05:16.960 --> 0:05:21.360 five to ten years. Today we're pushing nine percent inflation. Overall, 0:05:21.360 --> 0:05:25.159 consumer sentiment is suffering with the University of Michigan index 0:05:25.320 --> 0:05:29.320 at historic close and he dealt Jdicce Bloomberg day Break. Okay, Vinny, thanks. 0:05:29.400 --> 0:05:32.000 That sentiment report comes the day after the latest GDP 0:05:32.160 --> 0:05:34.600 data fired up the debate over whether the US has 0:05:34.600 --> 0:05:38.159 slipped into a recession. One top official says no. Let's 0:05:38.160 --> 0:05:40.880 get the latest line from Bloomberg's Riunita Young. Good morning, Rinita, 0:05:40.920 --> 0:05:44.599 Good morning Nathan. Treasury Secretary Janet Yellen is rejecting the 0:05:44.640 --> 0:05:47.760 notion that the US has entered a recession. She points 0:05:47.760 --> 0:05:52.479 to continued job creation, gains in consumer spending, strong household finances, 0:05:52.600 --> 0:05:56.680 and growth in business, Although she acknowledges a slowdown is 0:05:56.760 --> 0:06:00.120 needed to tame inflation. We knew they would. Challenge is 0:06:00.160 --> 0:06:06.320 ahead of US. Growth is slowing globally. Inflation remains unacceptably high, 0:06:06.440 --> 0:06:10.119 and it's this administration's top priority to bring it down. 0:06:10.440 --> 0:06:14.839 Treasury Secretary Janet Yellen says she remains optimistic about the 0:06:14.880 --> 0:06:18.680 country's ability to fight inflation. Live in New York, I'm 0:06:18.680 --> 0:06:21.479 ready to Young Bloomberg Daybreak, all right, ready to thank you. 0:06:21.520 --> 0:06:24.119 But we also have news on the geo political front 0:06:24.160 --> 0:06:27.520 this morning. Presidents Biden and she Jan Ping have now 0:06:27.560 --> 0:06:30.480 agreed to set up an in person meeting, and Bloomberg 0:06:30.560 --> 0:06:33.720 said Bachelor has the details. This could be interpreted as 0:06:33.720 --> 0:06:37.599 a positive sign the dialogue could remain open, but tensions 0:06:37.680 --> 0:06:40.960 remain high, with words like constructive left out of the readouts. 0:06:41.360 --> 0:06:44.560 White House Folks Women Karen Jean Pierre says Taiwan was 0:06:44.600 --> 0:06:48.360 a major issue. President Biden underscored that the United States 0:06:48.480 --> 0:06:51.960 policy has not changed and that the United States strongly 0:06:52.080 --> 0:06:56.960 opposes unilateral efforts to change the status. Also mentioned of 0:06:56.960 --> 0:06:59.560 the readouts efforts to fight climate change and protect the 0:06:59.560 --> 0:07:03.839 global macro economy. In San Francisco, I'm at Baxter Bloomberg 0:07:03.880 --> 0:07:07.280 day break, Okay and thanks SMP futures up thirty points now, 0:07:07.360 --> 0:07:10.520 DEALT futures up ninety Nastack futures up a hundred fifty 0:07:10.520 --> 0:07:13.320 one points. The tenure Treasury is down twelve thirty seconds 0:07:13.400 --> 0:07:16.880 yield two point seven to per cent. Local headlines and 0:07:16.920 --> 0:07:23.040 a check off sports up next. This is Bloomberg and 0:07:23.120 --> 0:07:24.920 at six oh seven on Wall Street, We're it's seventy 0:07:24.920 --> 0:07:27.560 five degrees in Central Park. Got an overturned tractor trailer 0:07:27.600 --> 0:07:30.080 on the southbound six eighty four off ramp to two 0:07:30.080 --> 0:07:33.280 eighty seven inheritson more coming up in Traffic First Michael 0:07:33.280 --> 0:07:35.120 Barr with what else is going on in New York 0:07:35.160 --> 0:07:37.520 and around the world Company Michael Good Morning. Nathan, a 0:07:37.600 --> 0:07:40.360 former New York State Supreme Court justice, was sentenced to 0:07:40.640 --> 0:07:44.640 a year and four months in jail. Attorney General Letitia 0:07:44.760 --> 0:07:49.120 James has former judge John mccallock accepted bribes from a 0:07:49.120 --> 0:07:53.720 Democratic Party political operative. James says mccallick took bribes from 0:07:53.760 --> 0:07:57.720 former Erie County Democratic Committee Chairman G. Stephen Pigeon in 0:07:57.760 --> 0:08:02.560 exchange for a political, judicial, and personal favors. In Kentucky, 0:08:02.640 --> 0:08:04.840 at least eight people are dead after more than ten 0:08:04.960 --> 0:08:08.840 inches of rain in twenty four hours. It submerged homes, 0:08:09.000 --> 0:08:13.760 washed away roads, and triggered mudslides. Governor Andy Butscher has 0:08:13.800 --> 0:08:17.360 declared a state of emergency. State police are fully active, 0:08:17.600 --> 0:08:20.920 have an extra helicopter that can be used in rescues. 0:08:20.960 --> 0:08:25.360 The Transportation Cabinet is actively working preparing for debris removal. 0:08:25.920 --> 0:08:30.400 Fish and wildlife is out with votes, working to make 0:08:30.480 --> 0:08:35.720 water rescues were safe for their personnel. Forestry is ready 0:08:36.360 --> 0:08:40.440 for any clean up. This is an all hands on deck. 0:08:41.040 --> 0:08:45.000 Governor Mascher says about twenty people are without power. Former 0:08:45.040 --> 0:08:48.360 President Donald Trump says the Saudi funded live golf circuit 0:08:48.400 --> 0:08:52.320 has created a gold rush for players. Trump played around 0:08:52.640 --> 0:08:56.360 yesterday on his home course at Trump National Deadminister. This 0:08:56.400 --> 0:08:59.520 one was the Live Golf Invitational pro am. The former 0:08:59.520 --> 0:09:02.000 president says what the Saludi Back League is doing is 0:09:02.040 --> 0:09:05.800 good for golf because it gives players an alternative. Trump 0:09:05.840 --> 0:09:08.640 also says nobody has gotten to the bottom of nine eleven. 0:09:09.200 --> 0:09:13.360 Three hostile foreign actors breached the federal courts document management 0:09:13.480 --> 0:09:18.400 system via an incredibly significant and sophisticated cyber attack more 0:09:18.400 --> 0:09:21.560 than eighteen months ago. The Chairman of the House Judiciary Committee, 0:09:21.559 --> 0:09:24.680 Gerald Nadler, said that the hack had a disturbing impact 0:09:24.720 --> 0:09:29.160 on both pending civil and criminal litigation and national security. 0:09:29.520 --> 0:09:33.000 The Mega Millions lottery drawing to night, the jackpot one 0:09:33.120 --> 0:09:36.480 point one billion dollars. What would you do with all 0:09:36.480 --> 0:09:43.000 that money as bills? Definitely bills. That's a number one 0:09:43.040 --> 0:09:47.720 priority for me. Knocks on bills down and I have 0:09:47.800 --> 0:09:51.200 to get uh see what I got there. It's the 0:09:51.240 --> 0:09:54.760 third largest prize in US lottery history. Global News twenty 0:09:54.840 --> 0:09:57.440 four hours a day on airand on Bloomberg Quick Take 0:09:57.480 --> 0:10:00.520 powered by more than twenty seven under journal to analysts 0:10:00.559 --> 0:10:02.680 more than a hundred twenty countries. I'm Michael Barb. This 0:10:02.720 --> 0:10:04.800 is Bloomberg Knight. You know one point one billion would 0:10:04.840 --> 0:10:06.760 take care of a lot of bills. Thank you, Michael. 0:10:11.600 --> 0:10:13.640 Almost six ten on Wall Street. Time for the Bloomberg 0:10:13.679 --> 0:10:16.160 Sports Update with John Stesshow all right, Nathan. The Yankees 0:10:16.200 --> 0:10:18.680 sixties seven win of the year, thirty eight at home, 0:10:18.760 --> 0:10:21.120 and twelve of the thirty eight nearly a third have 0:10:21.240 --> 0:10:24.880 been walk off wins, and three of the twelve have 0:10:25.160 --> 0:10:28.760 ended just like the one last night hit in the 0:10:28.800 --> 0:10:34.120 are pitting Glove Center. It is high Hello for hell God, 0:10:35.120 --> 0:10:38.839 I walk off or run to win the game, A 0:10:39.280 --> 0:10:44.080 judge and glad oh wow bottom by the nine all 0:10:44.280 --> 0:10:48.720 run by judge to win the ball game one nothing 0:10:48.920 --> 0:10:51.840 Sirlene fing and great pictures dokay in the City's Brady 0:10:51.920 --> 0:10:54.680 Singers seven and is only one hit struck at ten 0:10:55.000 --> 0:10:57.600 the Yanks Jameson tay On, We're on Marion at Joe 0:10:57.640 --> 0:11:00.040 Clait's Holmes. Together they gat of only four it no 0:11:00.200 --> 0:11:04.120 walks twelve strikehouse of scoreless until the Aaron Judge blast 0:11:04.160 --> 0:11:07.240 four hundred one feet off Scott Farlow judges thirty ninth 0:11:07.280 --> 0:11:08.880 home run of the year. He had never had a 0:11:08.920 --> 0:11:11.920 walk off homer before this season. He's had three in 0:11:12.000 --> 0:11:14.559 the last two and a half months. Andrew Benintendi made 0:11:14.559 --> 0:11:16.920 his Yankee debut faced the team that just traded him. 0:11:16.960 --> 0:11:20.000 Vatted leadoff went over four. The series continues tonight. The 0:11:20.040 --> 0:11:22.880 Mets tonight visit the Marlins. The Mets just sent two 0:11:22.920 --> 0:11:26.080 minor leaguers to Cincinnati for outfielder Tyler Nick when he 0:11:26.080 --> 0:11:28.800 was hitting two forty six to the Reds. Rangers drafted 0:11:28.880 --> 0:11:31.480 Kapo Kecko second overall a couple of years ago. They 0:11:31.480 --> 0:11:33.079 have given the twenty one year old the two year 0:11:33.080 --> 0:11:36.880 contract extension. The Jets signed linebacker Kwan Alexander. He had 0:11:36.880 --> 0:11:39.400 been with New Orleans before that the forty Niners, where 0:11:39.640 --> 0:11:42.320 he was coached by the Jets coach Robert Salah. White 0:11:42.320 --> 0:11:45.400 out dk Metcalfe new contract with Seattle and the Dallas 0:11:45.480 --> 0:11:49.239 Cowboys son kick returner Cavante Turpin. He was the USFL 0:11:49.400 --> 0:11:51.840 m v P with the New Jersey Generals. John stashwar 0:11:51.880 --> 0:11:55.400 Bloomberg Sports Nathan thank you, John SMP futures up twenty 0:11:55.480 --> 0:11:58.480 nine points now del futures fiveness at future is highed 0:11:58.760 --> 0:12:07.600 by one forty eight points. This is Bloomberg Bloomberg eleven 0:12:07.679 --> 0:12:10.439 three oh weather partly sunny, maybe an afternoon shower, thunderstorm 0:12:10.480 --> 0:12:14.440 going up to near ninety degrees, partly sunny Tomorrow uperds 0:12:14.840 --> 0:12:18.400 mix of sun and cloud Sunday operatings right now in 0:12:18.400 --> 0:12:25.000 Central Park Markets, headlines and breaking news twenty four hours 0:12:25.000 --> 0:12:27.959 a day at Bloomberg dot com. The Bloomberg Business at 0:12:28.080 --> 0:12:38.000 and at Bloomberg Quicktape is a Bloomberg business flash and 0:12:38.040 --> 0:12:42.160 I'm Karen Moscow and earnings from Chevron crossing the Bloomberg. 0:12:42.200 --> 0:12:44.559 It did expand at shared by backs by as much 0:12:44.559 --> 0:12:48.480 as fifty percent after blowing past all forecasts with the 0:12:48.640 --> 0:12:53.000 strongest quarterly performance in company history, and shares jumping in 0:12:53.040 --> 0:12:56.080 early trading up three point two per cent. Stocks in 0:12:56.120 --> 0:12:59.240 Europe in the US are set for their biggest monthly 0:12:59.280 --> 0:13:03.040 advance in November twenty on positive earnings, and we check 0:13:03.120 --> 0:13:06.439 the markets every fifteen minutes throughout the trading day on Bloomberg. 0:13:06.520 --> 0:13:08.480 Right now, S and P futures are up about twenty 0:13:08.520 --> 0:13:11.640 nine points down futures of eighty seven and NASDAG futures 0:13:11.640 --> 0:13:14.839 have one hundred forty up one point one percent. The 0:13:14.880 --> 0:13:17.120 decks in Germany's of nine tens of a percent ten 0:13:17.200 --> 0:13:20.160 year treasury down nine thirty seconds yield two point seven 0:13:20.240 --> 0:13:22.360 one percent, the yield on the two year two point 0:13:22.400 --> 0:13:25.280 eight eight percent. Nine mex screwed oil of one point 0:13:25.320 --> 0:13:27.880 seven percent of a dollar sixty four at ninety eight dollars. 0:13:27.920 --> 0:13:30.640 Five cents of barrel comexs gold a half percent or 0:13:30.679 --> 0:13:34.160 eight dollars at seventeen seventy seven. Twenty announced the euro 0:13:34.280 --> 0:13:36.520 one point oh two one five against the dollar, British 0:13:36.520 --> 0:13:38.520 found one point to one six zero and the yen 0:13:38.559 --> 0:13:41.800 one thirty three point to two, and bitcoin is higher 0:13:41.880 --> 0:13:46.280 up a quarter percent at twenty four thousand, one hundred dollars. 0:13:46.440 --> 0:13:49.040 That's a bloomberg business flash. Now here's Michael Barr with 0:13:49.120 --> 0:13:51.839 more on what's going on around the world. Michael Darren, 0:13:51.880 --> 0:13:55.000 thank you very much. President Chi Jinking warned against meddling 0:13:55.040 --> 0:13:58.320 in China's dealings with Taiwan during a phone call with 0:13:58.400 --> 0:14:02.800 his US counterpart Joe By. It comes among Beijing's opposition 0:14:02.840 --> 0:14:06.960 to HOW Speaker Nancy Pelosi's possible visit to Taiwan that 0:14:07.120 --> 0:14:10.360 China claims as its own. Flooding in eastern Kentucky has 0:14:10.440 --> 0:14:14.120 left at least eight people dead. Governor Andy Basher has 0:14:14.160 --> 0:14:17.840 declared a state of emergency. In baseball, the Yankees beat 0:14:17.880 --> 0:14:20.840 the Royals one zip. The Red Sox beat the Guardians 0:14:20.880 --> 0:14:23.920 for to The Orioles shut out the Rays three nothing. 0:14:24.200 --> 0:14:27.080 The Giants beat the Cubs for two. Global News twenty 0:14:27.080 --> 0:14:30.000 four hours a day on here and on Bloomberg Quicktake, 0:14:30.240 --> 0:14:33.280 powered by more than twenty seven hundred journalists and analysts 0:14:33.320 --> 0:14:36.920 more than countries. I'm Michael bar This is Bloomberg, Nathan. 0:14:37.080 --> 0:14:39.400 Thank you, Michael. It is six nineteen on Wall Street 0:14:39.440 --> 0:14:43.200 Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. 0:14:43.200 --> 0:14:45.360 And even as we watch big oil earnings begin to 0:14:45.360 --> 0:14:48.400 cross the Bloomberg terminal, we keep our focus on big tech. 0:14:48.480 --> 0:14:52.240 After a very interesting week for the tech sector, capped 0:14:52.280 --> 0:14:57.160 off by Amazon and Apple both posting strong earnings despite 0:14:57.240 --> 0:15:00.960 economic headwinds, Let's bring in Matthew Blocksham, senior industry analyst 0:15:01.040 --> 0:15:04.120 of Bloomberg Intelligence, for more on what we learned from 0:15:04.360 --> 0:15:07.680 the two big tech giants. Matt, good morning. Let's start 0:15:07.720 --> 0:15:10.720 off with Amazon just because the shares are surging so much, 0:15:11.000 --> 0:15:15.800 still managing to eke out revenue even with inflation and 0:15:16.080 --> 0:15:18.480 cost cuts. Do you think that can continue as we 0:15:18.520 --> 0:15:20.480 get through the rest of this year and with the 0:15:20.480 --> 0:15:25.360 FED tightening policy. I mean that they're certainly very constant 0:15:25.480 --> 0:15:28.400 about the next course. I mean that they delivered temper 0:15:28.520 --> 0:15:31.360 and constant currency growth in course just reported and looking 0:15:31.400 --> 0:15:35.560 for as much as you know, maybe kind off in 0:15:35.560 --> 0:15:37.600 the quarter ahead. And I think that's coming from both 0:15:38.000 --> 0:15:40.480 resilience in the e commerce business, you know, which which 0:15:40.560 --> 0:15:43.960 is kind of more or less flat um constant currency, 0:15:44.040 --> 0:15:49.080 but really coming the cloud business Amazon Web services, so yeah, 0:15:49.160 --> 0:15:52.600 near um obviously some some weakness in the consumer, but 0:15:52.680 --> 0:15:54.640 not really kind of denting that business too much. And 0:15:54.720 --> 0:15:56.560 I think the other really positive thing, which I think 0:15:56.600 --> 0:15:59.920 is pretty more behind the Shampie's reaction, is what they 0:16:00.000 --> 0:16:03.280 have been able to deliver on costs um in the 0:16:03.320 --> 0:16:05.960 court just reported. That was a big concern for people 0:16:06.000 --> 0:16:09.040 as it came out the pandemic that there's perhaps overinvested 0:16:09.080 --> 0:16:12.360 in capacity for the e commerce business, and they're starting 0:16:12.400 --> 0:16:15.080 to show signs that they're getting that under control, and 0:16:15.400 --> 0:16:17.960 some positive messaging about the quarters ahead in terms of 0:16:18.000 --> 0:16:21.440 what they'll be doing on headcount and getting spending more 0:16:21.440 --> 0:16:25.640 online with the revenue they're expecting to get from from 0:16:25.640 --> 0:16:29.800 a course of different potsile business. So as Amazon navigates 0:16:29.840 --> 0:16:32.800 the rest of this year, Matt, where do you see 0:16:33.360 --> 0:16:36.680 the business really seeing signs of growth. Is it going 0:16:36.760 --> 0:16:38.520 to be more on the e commerce side or is 0:16:38.520 --> 0:16:41.800 it going to be more on cloud. I think it's 0:16:41.800 --> 0:16:44.360 more on cloud. And again we we saw them say 0:16:44.440 --> 0:16:49.560 yesterday that they're shifting the focus of their spending towards 0:16:49.640 --> 0:16:52.680 that part of the business because that's where the strength is. 0:16:53.240 --> 0:16:55.880 UM that that unit grew at something like thirty three 0:16:56.040 --> 0:16:59.240 percent you're over year and the course just gone. It's 0:16:59.320 --> 0:17:02.280 the dominant cloud provider in the world, put about thirty 0:17:02.280 --> 0:17:04.679 five percent share, and they were saying there's still a 0:17:04.760 --> 0:17:08.280 huge amount of opportunity in that marketplace. So I think 0:17:08.320 --> 0:17:11.040 that's going to continue to be both the driver of 0:17:11.119 --> 0:17:13.960 both revenues and profit for them. To give you a sense, 0:17:13.960 --> 0:17:16.560 in the first six months of the year, UM the 0:17:16.600 --> 0:17:19.840 cloud business delivered something like twelve billion dollars of operating 0:17:19.880 --> 0:17:23.280 income compared to about five billion dollars of losses across 0:17:23.320 --> 0:17:26.520 the other businesses. So it really is the revenue and 0:17:26.800 --> 0:17:30.760 profit engine of Amazon right now. When it comes to Apple, 0:17:31.040 --> 0:17:35.640 we saw pretty strong results for iPhone and iPad in particular. 0:17:35.880 --> 0:17:37.879 What about the rest of the business there was some 0:17:37.920 --> 0:17:41.080 weakness and some of the other parts of what Apple's out. Yeah, 0:17:41.160 --> 0:17:45.440 that's right. So a big miss on the wearable segment UM, 0:17:45.560 --> 0:17:47.960 so maybe they're kind of the Watch seven not rowing 0:17:48.000 --> 0:17:52.120 so well. That's about a ten percent miss against expectations 0:17:52.600 --> 0:17:55.840 UM and also a miss on max of the kind 0:17:55.840 --> 0:17:58.639 of PC division. I think that that the people are 0:17:58.680 --> 0:18:02.080 more comfortable about the map commiss because essentially it's about 0:18:02.920 --> 0:18:05.359 timing of new products or see some some of that's 0:18:05.400 --> 0:18:09.640 been down to shortage of chips and then prioritizing chips 0:18:09.720 --> 0:18:12.200 apply to the iPhone and the iPads. So I think 0:18:12.200 --> 0:18:15.159 it's confidence that when those new products come out in 0:18:15.200 --> 0:18:18.600 the next few months that will pep up demand. On 0:18:18.640 --> 0:18:22.280 the MAX side, I think the wearables is a little 0:18:22.280 --> 0:18:24.880 bit more of a head scratcher. I guess people will 0:18:24.920 --> 0:18:28.200 be hoping that the Watch eight, which should come out 0:18:28.280 --> 0:18:32.800 maybe in September, will be a bigger upgrade and people 0:18:32.800 --> 0:18:36.240 will get more excited about that as their next time piece. 0:18:36.600 --> 0:18:38.919 Now last minute here, Matt, is there any concern that 0:18:38.920 --> 0:18:41.720 Apple is going to manage to keep that product line 0:18:41.840 --> 0:18:45.560 going with the China exposure and the potential perhaps for 0:18:45.840 --> 0:18:50.920 supply chain disruptions. I think the the noises yesterday where 0:18:51.119 --> 0:18:54.320 maybe the supply chain issues were still there oh easing, 0:18:54.440 --> 0:18:56.919 So I think that there's more confidence, if you like, 0:18:57.040 --> 0:19:00.000 that there's going to be a better balance between supply 0:19:00.000 --> 0:19:03.680 and demand in the next couple of quarters. Clearly China 0:19:03.880 --> 0:19:06.320 um is a bit of an issue for them, but 0:19:06.480 --> 0:19:09.280 I'd say, certainly in in the commentary on what we 0:19:09.320 --> 0:19:12.040 saw in the numbers they released for the course just 0:19:12.119 --> 0:19:14.719 gone um that perhaps held up a bit better than 0:19:14.800 --> 0:19:17.159 people expected. And I think you know, they said it 0:19:17.240 --> 0:19:20.520 was the biggest course overseeing for people shifting from android 0:19:20.560 --> 0:19:24.880 to iOS. So I think you know that the the 0:19:25.000 --> 0:19:28.919 appetite for Apple products, certainly in the IP area, is 0:19:28.960 --> 0:19:32.480 still incredibly strong. Appreciate this man, thanks for coming on 0:19:32.560 --> 0:19:36.920 with us. Matthew Blacks, some senior industry analyst at Bloomberg Intelligence. 0:19:37.080 --> 0:19:41.240 On Amazon after earnings shares are up twelve percent in 0:19:41.280 --> 0:19:45.239 the pre market, and on Apple those shares higher by 0:19:45.280 --> 0:19:49.880 about two percent this morning, driving Nasdaq futures higher. They're 0:19:49.920 --> 0:19:52.520 up a hundred forty points again of one point one 0:19:53.000 --> 0:19:56.000 s and P futures up twenty nine. Dow Future is 0:19:56.080 --> 0:20:02.359 higher by nineties six points. You're listening to Bloomberg Daybreak 0:20:07.480 --> 0:20:10.200 Bloomberg eleventh, three oh weather partly sunny, maybe an afternoon 0:20:10.200 --> 0:20:11.840 shower storm to end the week. We'll get up to 0:20:11.880 --> 0:20:14.400 near ninety degrees. Will be probably the mostly sunny tomorrow 0:20:15.040 --> 0:20:17.560 all weekend long. We're looking for highs near ninety right 0:20:17.640 --> 0:20:24.840 now in Central Park. Broadcasting live from the Bloomberg Interacted 0:20:24.880 --> 0:20:28.760 Broker Studio in New York, Bloomberg Living Freedom to Washington, 0:20:28.840 --> 0:20:32.920 d C, Bloomberg to Boston, Bloomberg one O six one 0:20:33.040 --> 0:20:36.520 to San Francisco, Bloomberg N sixty to the Country, Sirius 0:20:36.640 --> 0:20:39.280 XM to A one nine, and around the globe the 0:20:39.280 --> 0:20:43.159 Bloomberg Business app and Bloomberg Radio dot Com. This is 0:20:43.200 --> 0:20:52.000 Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm 0:20:52.080 --> 0:20:55.080 Nathan Hager and I'm Karen Moscow. We are just about 0:20:55.080 --> 0:20:57.520 three hours away from the open of US trading. Time 0:20:57.560 --> 0:20:59.320 to the five things that you need to notice start 0:20:59.359 --> 0:21:03.040 your day to you buy Interactive Brokers Simple, ib KR 0:21:03.119 --> 0:21:06.520 Global Trader app deposit in your local currency and trade 0:21:06.520 --> 0:21:09.160 stocks in the US, Europe and Asia. Start your free 0:21:09.160 --> 0:21:13.200 trial at ibk r dot com Slash Global Trader. First 0:21:13.280 --> 0:21:17.280 futures are higher following earnings from two tech giants. Amazon 0:21:17.400 --> 0:21:21.320 shares are surging twelve percent after the company reported revenue 0:21:21.320 --> 0:21:23.920 that top estimates, and Apple shares are up two percent 0:21:24.200 --> 0:21:28.119 after it also beat estimates. Bloomberg Intelligence Senior analyst Matthew 0:21:28.160 --> 0:21:31.320 blocks Them has more keeping costs under control that's been 0:21:31.359 --> 0:21:34.719 a really big focus for Amazon shareholders recently, and optimistic 0:21:34.720 --> 0:21:37.240 about the next quarter. They issued a arrange for revenue 0:21:37.240 --> 0:21:39.879 guidance that was pretty much consistent with where alas you're 0:21:39.880 --> 0:21:42.879 expecting it to be. I think for Apple, iPhone sales 0:21:42.920 --> 0:21:46.320 held up better than expected. People expecting new mexicom on 0:21:46.400 --> 0:21:47.919 in the next course and that's going to really help 0:21:47.960 --> 0:21:50.680 sales and encouraging Tim Coots if they expect to see 0:21:50.720 --> 0:21:53.879 progress in revenue in next quarter. Matthew blocks Them with 0:21:53.920 --> 0:21:57.359 Bloomberg Intelligence says both Amazon and Apple are position for 0:21:57.440 --> 0:22:00.879 strong performances in the next quarter. Has gotten results from 0:22:01.000 --> 0:22:03.680 Chevron and x on mobile care in the big oil companies, 0:22:03.720 --> 0:22:07.440 both reporting earnings above analyst estimates. Shares of Intel are 0:22:07.520 --> 0:22:10.840 down nearly ten percent, the chip makers profit in sales 0:22:10.880 --> 0:22:14.840 miss projections, and Roku shares are plunging down more than 0:22:14.880 --> 0:22:19.479 twenty after it also missed estimates. Unathanic Key Economic Report 0:22:19.600 --> 0:22:22.120 is also due out today. The University of Michigan issues 0:22:22.160 --> 0:22:25.760 it's National Consumer Sentiment Index for July. It comes as 0:22:25.800 --> 0:22:28.879 experts debate whether the US has slipped into a recession. 0:22:29.200 --> 0:22:32.280 One top officials says no. We get the latest lie 0:22:32.320 --> 0:22:35.160 from Bloomberg's Rendi Young Good morning, Ready Down, Good morning, Karen. 0:22:35.240 --> 0:22:38.840 Treasury Secretary Janet Yellen is rejecting the notion that the 0:22:38.960 --> 0:22:42.840 US has entered a recession. She points to continued job creation, 0:22:43.200 --> 0:22:47.440 gains in consumer spending, strong healthhold finances, and growth in business, 0:22:47.760 --> 0:22:51.919 although she acknowledges a slowdown is needed to tame inflation. 0:22:52.480 --> 0:22:55.440 We know there are challenges ahead of US. Growth is 0:22:55.520 --> 0:23:01.760 slowing globally, Inflation remains unacceptably high, and it's this administration's 0:23:01.840 --> 0:23:05.879 top priority to bring it down. Treasury Secretary Janet Yellen 0:23:05.960 --> 0:23:10.480 says she remains optimistic about the country's ability to fight inflation. 0:23:11.000 --> 0:23:13.719 Live in New York, I'm gonna need a young Bloomberg daybreak. 0:23:14.000 --> 0:23:16.600 We need an note on geo politics this morning. President's 0:23:16.640 --> 0:23:18.520 Biden and Shi Jin Ping have agreed to set up 0:23:18.520 --> 0:23:21.840 an in person meeting after their loan long phone call yesterday. 0:23:22.359 --> 0:23:25.719 And futures this morning are on the rise. SMP futures 0:23:25.760 --> 0:23:28.159 up about thirty points down, features up a hundred, nastag 0:23:28.240 --> 0:23:31.000 features at four. That's the five things that you need 0:23:31.040 --> 0:23:33.280