Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: Good morning.
Speaker 1: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 1: stories we're following today, Karen.
Speaker 2: If the futures are any indication this morning, the Nansdack
Speaker 2: could hit another record close today. Alphabet is the main catalyst.
Speaker 2: Those shares are hired by nearly six percent. This morning,
Speaker 2: the Google parent showed its expensive foray into artificial intelligence
Speaker 2: is starting to pay off in earnings that delivered better
Speaker 2: than expected traction for its cloud computing business and drove
Speaker 2: more usage to its flagship search engine. Alphabet Chief executive
Speaker 2: Officer Sun Darpachai talked about the cloud on the company
Speaker 2: conference call.
Speaker 3: I'm very pleased without growth, this business is real momentum
Speaker 3: and the overall opportunity is increasing as customers embraced Jenai.
Speaker 3: We generated Q three revenues of eleven point four billion dollars,
Speaker 3: thirty five percent over last year, with operating margins of
Speaker 3: seventeen percent.
Speaker 2: Alphabet CEO Soon Darpachai says overall revenue and profit exceeded expectations.
Speaker 2: Revenue reached seventy four point six billion dollars.
Speaker 1: Well, Nathan, alphabeta gains this morning pale in comparison to Reddit.
Speaker 1: Those shares are at an all time high, surging twenty
Speaker 1: two and a half percent. The social network operator, which
Speaker 1: when public in March, reported sales and a forecast that
Speaker 1: topped analyst estimates.
Speaker 2: On the flip side here and shares of advanced micro
Speaker 2: devices are tumbling this morning. They're down more than eight percent.
Speaker 2: The chip maker's revenue forecast missed analyst estimates. They say
Speaker 2: it's a sign, am, these artificial intelligence sales are growing
Speaker 2: more slowly than anticipated.
Speaker 1: Well, Nathan will have more on earnings and the markets
Speaker 1: in just a minute, but now let's get you updated
Speaker 1: on the World Series. There will be a Game five
Speaker 1: tonight as the Yankees stay of off elimination Bloomberg. John
Speaker 1: stash Hour is here with the very latest, John, all right.
Speaker 4: Hearing the Yankees. We're face seen in the elimination in
Speaker 4: World Series. Game four began yet again with a first
Speaker 4: inning to run homer by the red hot Dodger Freddie Freeman,
Speaker 4: but the Yanks load of the bases in the third inning.
Speaker 5: Faces loaded two out.
Speaker 2: Crisp Fucker redention.
Speaker 4: Fox Sports to call on Anthony Valpi Grant's lam Yanks
Speaker 4: pulled away. Added home runs by Austin Wells. Labor Torre
Speaker 4: stayed alive with in eleven of four, still trail the
Speaker 4: series three to one. John Stashiewa Bloomberg.
Speaker 1: Sports All right, John, thank you well. John. We'll be
Speaker 1: back with us in a few minutes for more details
Speaker 1: and postgame reaction from Game four the World Series.
Speaker 2: Now, Karen, let's get to the latest from the presidential race.
Speaker 2: Kamala Harris delivered her closing argument against Donald Trump with
Speaker 2: a major speech at Washington, DC's Ellipse.
Speaker 6: We know who Donald Trump is. He is the person
Speaker 6: who stood at this very spot nearly four years ago
Speaker 6: and sent an armed mob to the United States cap
Speaker 6: to overturn the will of the people in a free
Speaker 6: and fair election.
Speaker 2: The vice president cast the race as a choice between
Speaker 2: freedom for every American or chaos and division. She said
Speaker 2: her presidency would be different from President Biden's.
Speaker 6: Our top priority as a nation four years ago was
Speaker 6: to end the pandemic and rescue the economy. Now, our
Speaker 6: biggest challenge is to lower costs, costs that were rising
Speaker 6: even before the pandemic and that are still too high.
Speaker 2: Kamala Harris promised to prosecute price goungers, and she outlined
Speaker 2: her plans for tax breaks for new parents, startup businesses,
Speaker 2: and first time home buyers. The Harris campaign estimates more
Speaker 2: than seventy five thousand people turned out for the speech
Speaker 2: one week before the election.
Speaker 1: Oh Meantime, Nathan Donald Trump held a rally last night
Speaker 1: in Allentown, Pennsylvania, as he continues to face a backlash
Speaker 1: over anti immigrant comments at Madison Square Garden last weekend.
Speaker 1: President Biden's seized on the joke that Puerto Rico is
Speaker 1: a floating island of garbage on a call with Latino
Speaker 1: voters last night.
Speaker 2: Only garbage I see floating down there as his supporters.
Speaker 3: His demonizational scene is unconscionable, and it's on America.
Speaker 1: Former President Trump seized on that.
Speaker 7: Remember Hillary, she said deplorable and then she said irredeemable.
Speaker 2: Right, but she said deplorable.
Speaker 7: That didn't work out.
Speaker 8: Garbage, I think is worse right.
Speaker 3: But he doesn't know.
Speaker 8: You have to please forgive him, Please forgive him, for
Speaker 8: he not knoweth.
Speaker 3: What he said.
Speaker 1: Later, President Biden posted on x that he meant to
Speaker 1: say trump supporters rhetoric was garbage. Later today, the Harris
Speaker 1: campaign will run through the battleground states of North Carolina, Pennsylvania,
Speaker 1: and Wisconsin. Trump has a rally today in Green Bay, Wisconsin,
Speaker 1: featuring legendary Packers quarterback Brett Farv.
Speaker 2: Turning back to markets now, Karen Ubs posted a profit
Speaker 2: of one point four billion dollars in the third quarter,
Speaker 2: nearly double what analysts predicted. The Swiss lenders key wealth
Speaker 2: management unit and its investment bank both outperformed. In an
Speaker 2: interview with Bloomberg, UBS CEO Sergio or Mahdi warned of
Speaker 2: headwinds ranging from the US elections to falling interest income.
Speaker 9: Well, I think that the US election for sure won't
Speaker 9: be uneventful. I think that right now markets the markets
Speaker 9: are pricing a Trump victory and think that if this
Speaker 9: is confirmed in the remains to be seen is a
Speaker 9: classical sale of news event.
Speaker 2: UBS CEO Sergio or Mahdi spoke with Bloomberg's Francy Laqua.
Speaker 2: Switzerland's largest bank is still working through the integration of
Speaker 2: former rival Credit Suites, which it took over last year
Speaker 2: in an emergency rescue.
Speaker 1: Well Nathan, Europe's biggest automaker of Volkswagen, saw its operating
Speaker 1: margin shrink to its lowest since the COVID pandemic. VW's
Speaker 1: earnings could boost management's case for drastic measures. In Germany,
Speaker 1: labor leaders are resisting plans to close at least three
Speaker 1: factories and eliminate thousands of jobs.
Speaker 2: And back here in the US here and there's some
Speaker 2: optimism this morning. At Boeing, efforts have resumed to end
Speaker 2: the planemaker's seven week strike. Acting Labor Secretary Julie Sue
Speaker 2: says both sides held fruitful talks yesterday. The work stoppage
Speaker 2: for more than thirty three thousand union is taking a
Speaker 2: toll on Boeing instead of generating cash. In the fourth quarter,
Speaker 2: the company now expects to burn through around four billion dollars.
Speaker 2: Time now for look at some of.
Speaker 1: The other stories making news in New York and around
Speaker 1: the world. For that, we're joined by Bloomberg's Michael Barr Michael,
Speaker 1: Good morning, Good.
Speaker 5: Morning, Karen. Local and federal officials continue to search for
Speaker 5: a suspect believed to have set to ballot drop boxes
Speaker 5: on fire Monday in Oregon and Washington. Last week. Authorities
Speaker 5: in Phoenix say a number of ballots were damaged when
Speaker 5: a US Post Office collection mailbox was lit on fire.
Speaker 5: This all comes as the FBI and Department of Homeland
Speaker 5: Security warn election related grievances, such as a belief in
Speaker 5: voter fraud, could motivate domestic extremists to engage in violence
Speaker 5: before and after the election. In battleground Arizona, Maricoba County
Speaker 5: Sheriff Russ Skinner says they'll have zero tolerance when it
Speaker 5: comes to criminal activity related to the election.
Speaker 8: It's one thing for First Amendment, one thing to express
Speaker 8: your opinion. It's another when there's threatening or other violence
Speaker 8: that gets centered around this and it's not going to
Speaker 8: happen here in Maricopa County.
Speaker 5: Meanwhile, Jeff Ellington heads run Back election Services. A growing
Speaker 5: part of its business is now election security.
Speaker 2: We recently started selling panic bobs to counties because of
Speaker 2: all the threats to poll workers.
Speaker 5: The devices are connected to nine point one. Ellington says
Speaker 5: they have sold around one thousand to different counties. Former
Speaker 5: Trump's strategist Steve Bennon says that his time in prison
Speaker 5: galvanized him, and he repeated false claims that the twenty
Speaker 5: twenty election was stolen from former President Trump. Speaking at
Speaker 5: a news conference in New York. Bannon also said he
Speaker 5: is committed to helping with letting out the vote and
Speaker 5: recruiting poll workers and ballot counters in swaying states. We
Speaker 5: need to get people in the counting rooms.
Speaker 2: We need to get people around the tables to do
Speaker 2: ballot churing. Okay, So there's still need for that, So
Speaker 2: we're gonna.
Speaker 5: Call for that. Bannon was released Tuesdays, serving four months
Speaker 5: at the Danbury Federal Correctional Institution in Connecticut for defying
Speaker 5: a congressional subpoena from the investigation into the January sixth
Speaker 5: attack at the Capitol. The man who broke into the
Speaker 5: home of former House Speaker Nancy Pelosi in twenty twenty
Speaker 5: two and attacked her husband with a hammer has been
Speaker 5: given another prison sentence for the attack. As Judge Harry
Speaker 5: Dorfman was handing down David to PAP's state sentence, Dorfman
Speaker 5: said it was his intention that the pap never get
Speaker 5: out of prison. It gives the PAP life in prison
Speaker 5: without the chance of parole. The sentences on top of
Speaker 5: a thirty year federal prison term. Global News twenty four
Speaker 5: hours a day and whenever you want it with Bloomberg
Speaker 5: News now Michael Barn, This is Bloomberg Karen.
Speaker 1: All right, Michael Barr, thank you time now for the
Speaker 1: Bloomberg Sports Update, brought to you by try Staate Oudie.
Speaker 1: Here is John stash Hour again. Good morning John, Good
Speaker 1: morning care.
Speaker 4: And it was that Freddie Freeman walk off Grand Slam
Speaker 4: in Game one that turned this World Series in the
Speaker 4: Dodgers direction. They won three straight games. The Yankees are
Speaker 4: hoping the slam hit it in the third inning of
Speaker 4: Game four by Anthony Volpe does the same for them.
Speaker 4: Gave the Yanks to five to two lead. Dodgers got
Speaker 4: it to five to four, but Austin Wells, who had
Speaker 4: been buried in a deep slump, hit a solo shot
Speaker 4: at the Yanks put the game away in the eighth inna.
Speaker 2: Driven the other way deep ut centerfield.
Speaker 4: xCT Fox Sports to call of the Glaber Torres three
Speaker 4: run homer. Yanks won eleven four, still three to one down.
Speaker 4: It's a long way to go to win the series.
Speaker 4: But Aaron Boone happy. He'll be back at the stadium tonight.
Speaker 7: We just showed up today ready to play, and you
Speaker 7: know we're trying to get one, you know, and trying
Speaker 7: to trying to get the gate, trying to get it
Speaker 7: to tomorrow. You know, you know, you don't even get
Speaker 7: ahead of yourself and start thinking about the series. It's
Speaker 7: like our guys were ready to play. Obviously a lot
Speaker 7: of really good at bats, you know. Volpi with a
Speaker 7: big blow.
Speaker 4: Good Tonight starts his as Garrett Coles. He Yanks to
Speaker 4: try to get the series back to La. The White Sox,
Speaker 4: named Texas coach Will Venable, their new manager, takes over
Speaker 4: a team that just had the worst season in MLB history,
Speaker 4: and Barkley's too much.
Speaker 5: Da Kola Jokic.
Speaker 4: Twenty nine points, eighteen rebounds, sixteen assists denverby the Nets
Speaker 4: one nine in overtime. Rangers lost five to three and
Speaker 4: Washington two goals for Alex Ovechkin thirty eight more and
Speaker 4: he breaks Wayne Gretzky's record for most goals in NHL history.
Speaker 4: Islanders lost to Anaheim three to one for ruin shut
Speaker 4: out by Philadelphia two to nothing. Quarterback change in Indianapolis,
Speaker 4: the Colts benching twenty two year old Anthony Richardson. They'll
Speaker 4: start thirty nine year old Joe Flacco. The PGA Tours
Speaker 4: Advisory Council recommending changes that would begin in twenty twenty six.
Speaker 4: They include a reduction in the field size for some
Speaker 4: tournaments players who had a better chance.
Speaker 1: Of completing their runt.
Speaker 4: John Stashedwad of Bloomberg Sports, Karen and Me.
Speaker 2: Coast to Coast on Bloomberg Radio nationwide on Sirius XM,
Speaker 2: and around the world on Bloomberg dot Com and the
Speaker 2: Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm
Speaker 2: Nathan Hager. Artificial intelligence maybe starting to pay off. That
Speaker 2: could be the biggest takeaway from the biggest of the
Speaker 2: big tech companies that supported earnings so far this week,
Speaker 2: Google parent Alphabet posted solid results all around after all
Speaker 2: the spending it's done on AI. Here to break down
Speaker 2: the numbers for us is Bloomberg's Valerie Titel Valerie good morning.
Speaker 2: Looks like solid results all around on the main metrics.
Speaker 10: Yeah, great story from Alphabet. They reported healthy gains in
Speaker 10: both revenue and profit. As that companies, you know, their
Speaker 10: big bet on AI really showed signs of paying off
Speaker 10: in their results last night. Revenue excluding partner payouts increased
Speaker 10: to seventy four point six billion. It's upset sixteen percent
Speaker 10: year and year and ahead of the average analyst expectations
Speaker 10: of seventy two point nine billion. Net income was also
Speaker 10: a beat on expectations. It was at two dollars and
Speaker 10: twelve cents per share, compared with estimates of one dollar
Speaker 10: and eighty four cents per share. Excuse me, As its
Speaker 10: main search business matures, Googles really looks for other ways
Speaker 10: to get revenue, and most that has been focused on
Speaker 10: its cloud division. It's a big bet on AI and
Speaker 10: the Google's sales actually reached a new high for the
Speaker 10: third quarter, and the sales specifically in the cloud division
Speaker 10: jumped to eleven point four billion. It's a thirty five
Speaker 10: percent rise from a year ago and better than analysts
Speaker 10: across the street had projected. Now, the CEO said the
Speaker 10: numbers are encouraging. In a letter to investors last night,
Speaker 10: he said, our cloud AI solutions are helping drive a
Speaker 10: deeper product adoption with the existing customers and attract new
Speaker 10: customers and win larger deals. Now, Google does have the
Speaker 10: negativity of the US antitrust litigation weighing on it, and
Speaker 10: in that same note, the CEO did warn that the
Speaker 10: US government's resolution of that anti trust case could have
Speaker 10: quote unintended consequences for US leadership and tech. So a
Speaker 10: bit of warning there to the Justice Department on that litigation.
Speaker 10: But overall, very positive results from Alphabet based on that
Speaker 10: growth in the cloud services. Those shares are a five
Speaker 10: point four percent pre market trade.
Speaker 2: So after those results and the revenue beat on the
Speaker 2: cloud where is the bar now? What is the run
Speaker 2: rate for AI monetization for Google going forward?
Speaker 10: Well, look, it still really does. It's Google is the
Speaker 10: third in the market for cloud services, alongside Amazon and Microsoft,
Speaker 10: who are a bit ahead of it in that sector.
Speaker 10: But analysts do see that there is room to grow
Speaker 10: and they are positive on it. This is really a
Speaker 10: step in the right direction. What we saw from Alphabet
Speaker 10: in their earnings yesterday that this big bet, this big
Speaker 10: investment is starting to pay off and that they can
Speaker 10: move away from their AD revenue from their main search
Speaker 10: business and find a new avenue for growth.
Speaker 2: But you get have a different story this morning for
Speaker 2: Advanced micro Device is that it's the forecast that really
Speaker 2: seems to be the weight on that stock this morning.
Speaker 10: Yeah, their revenue forecasts from AMD really missed the analyst estimate,
Speaker 10: and it's a sign that it's artificial intelligence sales are
Speaker 10: growing more slowly than some had anticipated. It sparked a
Speaker 10: eight percent drop in the share in post market trade.
Speaker 10: It's continuing to hold that in the pre market as well.
Speaker 10: That's a racing nearly half of the AMD's gains on
Speaker 10: the year. So, despite growing AI accelerator sales, AMD still
Speaker 10: lags decently behind Navidia in the lucrative market, with its
Speaker 10: sales expected to reach only five billion this year. I
Speaker 10: say only five billion because you look at Navidia's AS sales.
Speaker 10: They trump that in multiple But on a conference call
Speaker 10: following the results, the CEO pushback on concerns that AMD
Speaker 10: isn't delivering enough growth, saying the company is ramping up
Speaker 10: product and earning the trust of large data center companies
Speaker 10: that do rely on AI accelerators.
Speaker 2: So, on our last minute val how does this set
Speaker 2: us up for the other big tech companies that are
Speaker 2: going to be reporting today, Microsoft in particular, I have
Speaker 2: to think has a lot of scrutiny around it on AI.
Speaker 10: Yeah, we hear from Microsoft and Meta later today, that
Speaker 10: would be after the bell. But also I want to
Speaker 10: just touch on Reddit briefly. Those sares are surging twenty
Speaker 10: two percent after the company sales and forecast beat expectations.
Speaker 10: You know, this is a share that went public only
Speaker 10: just past March, and it's now three trading nearly three
Speaker 10: times it's ibo price, So a lot of positivity around
Speaker 10: Reddit shares falling through the pre market trade. They're up
Speaker 10: twenty two percent.
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