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Speaker 1: Good morning.

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Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 2: stories we're following today.

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Speaker 3: The jump in Nasdaq futures follows better than expected earnings

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Speaker 3: from both Amazon and Facebook parent Meta Platforms. Let's get

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Speaker 3: the details from Bloomberg's John Tucker John Nathan Holidays.

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Speaker 4: Spending online led to strong growth in sales and profit

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Speaker 4: for Amazon, and the craze around artificial intelligence driving healthy

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Speaker 4: sales and its cloud computing arm. Its profit last quarter

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Speaker 4: surge to ten point six billion dollars. That's the strongest

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Speaker 4: in two years, and it got there in part by

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Speaker 4: cutting about thirty five thousand jobs. Facebook parent Meta reported

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Speaker 4: fourth quarter results that beat expectations. They gave an outlook

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Speaker 4: that's seen as strong. They also partly got there as

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Speaker 4: a result of cost cutting. Meta cut head count by

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Speaker 4: twenty two percent last year, and they also had money

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Speaker 4: to spare, Meta unveiling plans for a fifty billion dollar

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Speaker 4: stock buyback and even announcing its first ever quarterly dibenend.

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Speaker 4: The two stocks have combined to serve by more than

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Speaker 4: two hundred seventy billion dollars in pre market trading right now,

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Speaker 4: Meta up more than eighteen percent Amazon is up about

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Speaker 4: nine percent. John Tucker, Bloomberg Radio.

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Speaker 2: Right, John, thanks Well, Meta investors are not the only

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Speaker 2: ones reaping the benefits of the company's first ever dividend.

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Speaker 2: Chief executive Mark Zuckerberg stands to receive a payout of

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Speaker 2: about seven hundred million dollars a year. According to data

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Speaker 2: compiled by Bloomberg, Zuckerberg holds about three hundred and fifty

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Speaker 2: million shares, and that means he would take home about

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Speaker 2: one hundred and seventy five million dollars in each quarterly

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Speaker 2: payment before taxes.

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Speaker 3: Well, Karen, it's a different earning story at Apple. Those

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Speaker 3: shares are down about one percent. The company's latest quarterly

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Speaker 3: results are triggering investor fears that Apple's losing clout in China,

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Speaker 3: which generates roughly a fifth of its sales. Bloomberg's Emily

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Speaker 3: Chang spoke with one of Apple's top executives after that

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Speaker 3: earnings report.

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Speaker 5: I did just speak with Apple CFO Luka Maastri. He said,

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Speaker 5: we're not happy with it, but we know that China

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Speaker 5: is the most competitive market in the world and we

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Speaker 5: do still see a lot of long term opportunity there.

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Speaker 5: He did call out that the iPhone declined less than

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Speaker 5: the other product categories. That is, the iPhone did better

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Speaker 5: than the other product categories. In China, he said that

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Speaker 5: there they saw a record install base. They're still seeing

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Speaker 5: strong growth in upgraders. But again, you know, this is

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Speaker 5: a market that folks have been very concerned.

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Speaker 3: About, and Bloomberg's Emily Chang says revenue from China plunged

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Speaker 3: thirteen percent last quarter. That marked the worst decline since

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Speaker 3: the twenty eighteen holiday season.

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Speaker 2: Well, Nathan, the world's leading AI chip maker, is looking

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Speaker 2: to grow overseas, and Videos CEO Jensen Huang says countries

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Speaker 2: like India, Japan, France, and Canada are talking more about

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Speaker 2: building what he calls sovereign AI capabilities. He says that

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Speaker 2: focus on homegrown AI infrastructure will drive demand for invidious products.

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Speaker 6: Has become abundantly clear to each one of the countries

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Speaker 6: that their natural resource, which is the data of their country,

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Speaker 6: should be refined and produce intelligence of their country for

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Speaker 6: their country.

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Speaker 2: And Video CEO Jensen Huong tells Bloomberg it's an America's

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Speaker 2: interest for companies to win in overseas markets well.

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Speaker 3: A big tech scribe in the spotlight this morning, Karen

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Speaker 3: It is also a big day on the economic front.

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Speaker 3: We get the highly anticipated jobs report for the month

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Speaker 3: of January, and the median forecast is for a gain

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Speaker 3: of one hundred and eighty five thousand jobs. We get

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Speaker 3: a preview now from Bloomberg's Michael McKee.

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Speaker 7: The FED is no longer expecting a big jump in

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Speaker 7: unemployment and wants to see a strong labor market. Chairman

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Speaker 7: J Powell said this week economists think they will get it.

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Speaker 7: The forecast is for another month of large job gains,

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Speaker 7: and while there is a slight tick up in unemployment scene,

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Speaker 7: January should be the twenty fourth consecutive month with a

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Speaker 7: jobless rate under four percent. What the numbers won't do

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Speaker 7: is bring any action from the Central Bank. Although Powell

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Speaker 7: suggests rake cuts are coming, he all but ruled out

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Speaker 7: the next meeting in March. Michael Key, Bloomberg Radio.

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Speaker 2: All right, Mike, thanks, And speaking of J. Powell, we'll

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Speaker 2: hear more from the Fed chairman this weekend. He will

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Speaker 2: appear on sixty Minutes on CBS this Sunday. The network

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Speaker 2: says Powell will discuss inflation risks, expected rate cuts, and

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Speaker 2: the banking system.

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Speaker 3: Well Karen Monetary policies also in focus in Europe. Despite

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Speaker 3: leaving rates unchanged yesterday, the Bank of England did open

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Speaker 3: the door to interest rate cuts this year, but BOE

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Speaker 3: Governor Andrew Bailey tells Bloomberg factors like Middle East turmoil

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Speaker 3: and rising living standards could be inflationary.

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Speaker 8: We haven't cleared a risk, by the way, a new

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Speaker 8: risk actually, which is we're really reflecting obviously sort of

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Speaker 8: tragic events of them, at least in the impact that

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Speaker 8: can have for the Red Sea effects. So I think

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Speaker 8: now the question is for us as really is for

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Speaker 8: how long do we need to mind tine this stance

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Speaker 8: going forwards? You know, I've said a number of times

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Speaker 8: we're going We're not making predictions.

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Speaker 4: At this point.

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Speaker 3: BOE Governor Andrew Bailey's comments come as the Monetary Policy

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Speaker 3: Committee in the UK saw its first member vote to

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Speaker 3: cut rates since the Panda Well.

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Speaker 2: Turning back to the markets, Nathan, we continue to follow

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Speaker 2: shares of New York Community Bank Corp. They've tumbled for

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Speaker 2: two straight days as well. Street downgrades piled up and

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Speaker 2: Moody's put the lender on review for a credit rating cut.

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Speaker 2: The stock is trading at its lowest level since two thousand.

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Speaker 2: It's sank eleven percent yesterday, adding to Wednesday's record thirty

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Speaker 2: eight percent plunge.

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Speaker 3: And shares of Clorox are up more than seven percent

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Speaker 3: in early trading. Careen, the company, which makes Pine salt

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Speaker 3: surface cleaners and Glad trash bags, is raising its sales

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Speaker 3: and profit forecast for the year. Clorox has restocked its

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Speaker 3: inventory rapidly following a cyber hack that paralyzed its manufacturing

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Speaker 3: operations last.

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Speaker 2: Year, and Nathan Visa said it blocked a record amount

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Speaker 2: of suspected fraud last year. The San Francisco based payments

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Speaker 2: giant says it blocked forty billion dollars worth, and that's

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Speaker 2: nearly double the twenty three billion scene in the year before.

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Speaker 2: Visa says block transactions in the US were out more

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Speaker 2: than four hundred and fifty percent year on year in December.

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Speaker 2: Time now for a look at some of the other

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Speaker 2: stories making news around the world. For that, we're joined

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Speaker 2: by Bloomberg's Amy Morris Amy, Good morning, Good morning, Karen.

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Speaker 9: Senate negotiators are closing in on a deal now that

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Speaker 9: would address the southern border and send aid to Israel

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Speaker 9: and Ukraine. Bloomberg's Nancy lyons with the latest Senate.

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Speaker 10: Majority Leader Chuck Schumer sounded optimistic during a speech on

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Speaker 10: the Senate floor.

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Speaker 11: Conversations are ongoing, some issues still need resolution, but we

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Speaker 11: are getting very close on the National Security supplemental.

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Speaker 10: Schumer says the text of the proposal will be ready

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Speaker 10: no later than Sunday, with the vote planned for midweek.

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Speaker 10: It's expected to provide money for more border agents, as

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Speaker 10: well as grant the president new powers to expedite the

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Speaker 10: deportation of undocumented migrants, and also titan criteria for applying

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Speaker 10: for asylum in Washington, Nancy lyons Bloomberg Radio.

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Speaker 9: Meanwhile, the acting head of Immigration and Customs Enforcement has

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Speaker 9: revealed a big operation resulting in one hundred and seventy

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Speaker 9: one arrests in more than two dozen cities. ISA director

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Speaker 9: Patrick Lechligner praised the agency's officers, who he said, work

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Speaker 9: hard despite having few resources.

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Speaker 6: We're working with the Department and Administration and our partners

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Speaker 6: obviously in Congress from appropriations.

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Speaker 4: Listen, we need more resources and we're working to get

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Speaker 4: that as.

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Speaker 6: Hard as we can.

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Speaker 9: Leck Liner warned his team may have to make some

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Speaker 9: tough decisions if Congress does not provide more funding by March.

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Speaker 9: President Biden meanwhile falling out of favor with minority voters.

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Speaker 9: A new poll done in Texas shows Donald Trump holds

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Speaker 9: a six point lead among Hispanics. Mark Jones ran the

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Speaker 9: poll for the University of Houston.

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Speaker 3: While Biden handily defeated Trump among Latinos back in twenty twenty,

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Speaker 3: now they're effectively tied, with Trump having a fight advantage.

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Speaker 9: Jones says the president is losing Latino support along the border,

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Speaker 9: where the states push to stop illegal immigration is popular.

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Speaker 9: Votors in South Carolina are said to cast the first

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Speaker 9: ballots in the Democratic primary tomorrow. The Palmetto state was

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Speaker 9: essential in helping Biden's twenty twenty campaign turn around. Valley

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Speaker 9: Brook outreached Baptist Church pastor Curtis Johnson is concerned about

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Speaker 9: the lack of enthusiasm among black voters this time around.

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Speaker 12: I am concerned about lack of enthusiasm. I am concerned

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Speaker 12: that so many about a community, and I understand feeling

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Speaker 12: that some of the issues that are more relevant to

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Speaker 12: us and not being addressed.

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Speaker 9: More than twenty two percent of South Carolinians planning to

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Speaker 9: vote in the Democratic primary tomorrow said they were undecided

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Speaker 9: on which candidate would receive their vote. Global news twenty

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Speaker 9: four hours a day and whenever you want it with

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Speaker 9: Bloomberg News Now, I maybe Morris and this is Bloomberg Kear.

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Speaker 2: Right, Amy. Thanks. We do bring you news throughout the

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Speaker 2: day right here on Bloomberg Radio. But now you can

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Speaker 2: get the latest news on demand whenever you want it.

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Speaker 2: headlines of the click of a button. Get informed on

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Speaker 2: your schedule. You can listen and subscribe to Bloomberg News

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Speaker 2: Now on the Bloomberg Business app, Bloomberg dot Com, plus apples, Spotify,

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Speaker 2: and anywhere else you get your podcasts. I'm now for

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Speaker 2: the Bloombergy Scores update with Dan Schwartzman.

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Speaker 7: Dan, Good morning, Karen.

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Speaker 11: Round two of the eighteen and T Pebble Beach Pro

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Speaker 11: Am coming up later this morning. Thomas Detria topped the

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Speaker 11: leaderboard after the first round at nine under in second

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Speaker 11: American Patrick Canley in third place Matthew Pavon at seven under. Meanwhile,

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Speaker 11: big trade in Major League Baseball the Baltimore Orioles acquiring

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Speaker 11: former Cy Young Award winner Corbyn Burns from the Milwaukee

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Speaker 11: Brewers in return the Oriols shipping to Milwaukee Joey Ortiz,

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Speaker 11: an infielder left handed DL Hall, as well as the

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Speaker 11: thirty fourth pick in the twenty twenty four draft. Burns

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Speaker 11: coming off the season of going ten and eight for

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Speaker 11: three point three nine ERA and two hundred tricads in

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Speaker 11: a little over one hundred ninety three innings. Burns will

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Speaker 11: be a free agent after next year. NBA scoreboard. Big

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Speaker 11: win by the Lakers as they went on the road

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Speaker 11: in Boston.

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Speaker 13: Here's a dry by Reeves slips it by the back

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Speaker 13: of the corner to Princes, drives the baseline, skips at Hatchamurra.

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Speaker 11: Up top, it goes the're all solo train till three.

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Speaker 11: That's courtesy of ESPN. Boston losing at home to the

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Speaker 11: Lakers one fourteen to one oh five. The Knicks continue

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Speaker 11: to be red hot. Day now won nine trade I

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Speaker 11: come from behind one o nine one oh five home

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Speaker 11: win over the Indiana Pacers. Jalen Brunson forty points in

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Speaker 11: the win for New York Cavaliers. A one eight one

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Speaker 11: oh one win over the Grizzlies in Memphis. All the

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Speaker 11: seventy six Ers slip past the Utah Jazz one twenty

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Speaker 11: seven to one twenty four. Speaking of the Sixers, big

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Speaker 11: news as reigning league MVP Joel Embiid will be missing

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Speaker 11: some time after he suffered a lateral meniscus injury in

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Speaker 11: his left knee when Ford Jonathan Comingo the Golden State

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Speaker 11: Warriors fell on his leg on Tuesday, and Beid's going

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Speaker 11: to be out the rest of the weekend. Treatment options

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Speaker 11: are being thought out. That's your Bloomberg Sports update. I'm

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Speaker 11: Dan Schwartzman.

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Speaker 13: From coast to coast, from New York to San Francisco,

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Speaker 13: Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg

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Speaker 13: Business app, and Bloomberg dot Com. This is Bloomberg day Break.

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Speaker 3: Good morning. I'm Nathan Hager. Big tech remains a big

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Speaker 3: focus for investors. We got earnings after the bell yesterday

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Speaker 3: from Apple, Amazon, and Metal platforms for Amazon and Meta.

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Speaker 3: Cost cutting and restrategizing seem to be paying off, and

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Speaker 3: even Apple has gotten a return to growth, but that's

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Speaker 3: getting overshadowed just a bit by a slowdown in China.

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Speaker 3: Let's get more on these tech earnings now. We're joined

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Speaker 3: by Bloomberg's Alex Webb and Alex. Let's start off with

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Speaker 3: Meta because that stock is really getting attention this morning,

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Speaker 3: a big surge in the shares. Is this just all

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Speaker 3: about the fact that investors are going to get a

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Speaker 3: dividend for the first time.

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Speaker 14: I'm sure that is a big factor. It's kind of interesting.

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Speaker 14: It's almost like the final pillar in a pivot. Well,

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Speaker 14: I don't if it's final way with that we do more,

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Speaker 14: but it's another pillar in this pivot away from being

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Speaker 14: perceived just as an outright growth stock. Right that the

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Speaker 14: obviously we've seen in over the past year or so

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Speaker 14: that growth stocks aren't being rewarded in quite the same way.

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Speaker 14: People are looking for something a little bit different, and

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Speaker 14: we've seen Meta really focus on a thing. It had

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Speaker 14: its so called year of efficiency last year. It cut

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Speaker 14: a lot of jobs. The comments from Mark Zuckerberg yesterday

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Speaker 14: with that he's not looking to do any meaningful hiring

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Speaker 14: this year doesn't mean they're not spending money. They are

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Speaker 14: spending quite a lot on you know, things like the

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Speaker 14: metaverse and AI, but that doesn't necessarily mean more headcount. Ultimately,

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Speaker 14: the actual core advertising business didn't do brilliantly but the

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Speaker 14: overall earnings, you know, it was a significant beat on

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Speaker 14: the top line, and this this cherry on the cake

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Speaker 14: in the form of the dividend.

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Speaker 3: We did get a pretty strong forecast, though, didn't we

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Speaker 3: When it comes to the ad market, that core business

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Speaker 3: for Meta platforms, does that say something about whether they

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Speaker 3: can pull off this pivot that, at least as far

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Speaker 3: as the metaverse has gone for Meta hasn't really been

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Speaker 3: rewarded so far from Mark Zuckerberg.

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Speaker 14: No, although the Reality Labs business, which is what they're doing,

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Speaker 14: you know, that's where the virtuality headsets come from, did

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Speaker 14: post its first quarter where it had more than a

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Speaker 14: billion dollars in revenue. Ultimately, the question has been is

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Speaker 14: the ads market resilient enough to be able to sustain

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Speaker 14: the cash expense on all these new technologies, And the

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Speaker 14: message seems to be yes. It is a lot of

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Speaker 14: the business appears to be coming from particularly Chinese direct

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Speaker 14: to consumer websites names like she In for instance, that

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Speaker 14: have actually been in some way has been taking chunks

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Speaker 14: out of Amazon. But of course to find their customers,

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Speaker 14: they are using platforms, many of Meta's platforms, in particular Instagram.

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Speaker 3: Let's talk about Amazon had a blowout holiday quarter. What's

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Speaker 3: the big takeaway from those results for you?

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Speaker 14: Again, it's a similar story to Meta that they have

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Speaker 14: been focusing on costs to a far greater extent than

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Speaker 14: we've seen previously. They've cut fair number of jobs, but

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Speaker 14: in things like Prime Video and Twitch, which is its

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Speaker 14: game streaming service to you to watch games being live streamed.

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Speaker 14: The numbers, but thirty five thousand jobs have cut obviously

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Speaker 14: significant impact on the poor people who've lost their jobs.

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Speaker 14: But in the grand scheme of things, Apple, Amazon sorry,

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Speaker 14: employs one and a half million people in full time

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Speaker 14: part time roles, so you know, the numbers themselves pretty

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Speaker 14: much met expectations. There was, you know, this online sales

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Speaker 14: pretty much in line with expectations. Same with Amazon Web services.

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Speaker 14: The good thing for investors when you look at AWS

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Speaker 14: is that there had been a little bit of concern

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Speaker 14: that maybe it wasn't as strong in AI as Microsoft

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Speaker 14: and Google, who have really been making good headway there

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Speaker 14: doesn't seem to have had too detrimental an effect on

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Speaker 14: the growth in AWS, So you know, that is a

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Speaker 14: little certainly a bright spot for investors now.

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Speaker 3: It's so bright though for Apple investors, getting a bit

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Speaker 3: of a dip even after returning to growth for the

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Speaker 3: first time, and I think four quarters.

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Speaker 2: Yeah, it.

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Speaker 14: Beat estimates on the revenue line. Much of that was

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Speaker 14: seemed to be to do with Europe, where it did

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Speaker 14: far better than the street had been expecting. But China

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Speaker 14: is a big disappointment. People knew that it was going

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Speaker 14: to be bad. There's a certain upswell in patriotism there,

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Speaker 14: particularly when it comes to buying mobile phones. We saw

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Speaker 14: this or smartphones. We saw the six or seven years

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Speaker 14: ago where Apple took a bit of a hit in

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Speaker 14: China as local brands such as Oppo, Viva at the time,

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Speaker 14: Silmi and Huawei took share out of Apple. It looks

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Speaker 14: like that is happening again. Analysts had been expecting about

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Speaker 14: twenty three and a half billion dollars in sales in China.

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Speaker 14: In the end it was less than twenty one billion.

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Speaker 14: And the commentary looking forward doesn't seem all that bullish

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Speaker 14: for that market either.

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Speaker 3: Just thirty seconds left Alex But could we see Apple

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Speaker 3: get more love later on today when the vis Pro

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Speaker 3: finally hits stores.

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Speaker 14: I think the thing about the Vision Pro is is

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Speaker 14: really a statement piece that shows says Apple we are

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Speaker 14: still leading technologically, right, it's not going to make any

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Speaker 14: meaningful difference to their earnings in the near term, maybe

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Speaker 14: in the media term. And the other piece to that,

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Speaker 14: of course, is that Apple doesn't need it to be

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Speaker 14: a success per se. It just needs it to do

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Speaker 14: better than whatever Meta comes out with.

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Speaker 6: Right.

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Speaker 14: If Meta were to somehow own this space of virtuality

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Speaker 14: augmented reality, that would be a big problem for Apple.

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Speaker 14: But if none of them are successful, then ultimately it's

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Speaker 14: not the end of the world for Tim Cook.

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Speaker 3: Bringing it right around to the competition, the fierce competition

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Speaker 3: around wearables and AI in this big tech space. Thank

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Speaker 3: you for this as always, Alex Webb of Bloomberg News.

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Speaker 2: Well, Nathan, he did mention AI, and a lot of

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Speaker 2: the excitement around these megacap names has been driven by

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Speaker 2: the promise of artificial intelligence, and there is no bigger

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Speaker 2: chip maker in that space than Nvidia now, the semiconductor

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Speaker 2: maker CEO Jensen Wong says demand for his company's products

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Speaker 2: will be driven not just by its current customer is

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Speaker 2: in the Magnificent seven. He's pointing to companies and governments

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Speaker 2: overseas andming to build and run their own homegrown AI

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Speaker 2: infrastructure in media CEO Jensen Wog disgusted with the Bloomberg

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Speaker 2: Technology co host and Ludlow, and let's listen into part

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Speaker 2: of that conversation.

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Speaker 7: Now you have.

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Speaker 6: Seen India, Japan, and France, Canada, now Southeast Asia, Singapore

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Speaker 6: speak up about the importance of investing in sovereign AI capabilities.

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Speaker 6: It has become abundantly clear to each one of the

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Speaker 6: countries that their natural resource, which is the data of

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Speaker 6: their country, should be should be refined and produce intelligence

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Speaker 6: of their country for their country. And that capability of

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Speaker 6: refining the data of their country, of their country and

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Speaker 6: turn it into their artificial intelligence is now possible in

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Speaker 6: quite a quite a democratized way. Almost every country should

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Speaker 6: be able to do it for themselves. And and what's needed,

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Speaker 6: of course is the technology and the know how of

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Speaker 6: standing up AI infrastructure. And that's where we could be

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Speaker 6: quite helpful to to various regions. And so I think

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Speaker 6: that the the recognition of the importance of sovereign AI

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Speaker 6: capabilities is now quite quite global.

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Speaker 15: Jensen, does that recognition and your ability to help extend

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Speaker 15: to China, Well.

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Speaker 6: We're American company, and we have to comply with American policies,

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Speaker 6: and whatever the rules and regulations are and the laws are,

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Speaker 6: will number one, comply with them. Work closely with the

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Speaker 6: regulators and understand understand their intentions and their desires, work

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Speaker 6: within those boundaries, and be able to create products for

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Speaker 6: for the various countries that are involved, fully in compliant

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Speaker 6: with the regulations that are that are in front of us,

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Speaker 6: and beyond that once we once we comply, our goal

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Speaker 6: are in the United States would love to see us

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Speaker 6: be a successful country and in one of the pillars

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Speaker 6: of national security of successful industries, and it creates jobs

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Speaker 6: and allows our country to stay ahead and technologically.

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Speaker 4: And so.

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Speaker 6: It is of a great interest of our nation that

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Speaker 6: our American companies are successful around the world. And so

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Speaker 6: once once we comply with the regulations, we'll do our

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Speaker 6: best to serve the local markets. And we have full

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Speaker 6: we have excellent communications with the administration.

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Speaker 15: How should we think about sovereign AI as a business

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Speaker 15: line for you? Is there a way that we can

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Speaker 15: understand how in videos work, even if it's building supercomputers

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Speaker 15: like in the UK, for example, what proportion of your

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Speaker 15: overall business that will represent.

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Speaker 6: The vast majority of the computing market has been the

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Speaker 6: United States and to a small to a much longer,

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Speaker 6: smaller degree, China. For the very first time, every industry

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Speaker 6: would be every single country will become a computer industry,

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Speaker 6: and every industry will become a technology industry. And so

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Speaker 6: artificial intelligence or the automation uh the production at scale

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Speaker 6: of intelligence matters to every single country. It matters to

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Speaker 6: every single industry. And so for the very first time,

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Speaker 6: there's a there's a whole new computer market that is

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Speaker 6: going to be uh in in every single country, in

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Speaker 6: every single every single market. And UH it starts with

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Speaker 6: it starts with, of course, uh the native computer industry itself.

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Speaker 6: But you're seeing you're seeing a great adoption in healthcare,

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Speaker 6: great adoption and logistics uh in, UH in transportation, of course,

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Speaker 6: uh in manufacturing, in the large industries, the heavy industries.

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Speaker 6: UH For the very first time, because of Jariti AI,

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Speaker 6: computers are going to be computer technology is going to

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Speaker 6: impact literally every single industry in every single country.

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