Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: Well, Karen, the jump at Nasdaq Futures follows earnings from
Speaker 3: Apple and Amazon. Let's begin with the iPhone maker. Those
Speaker 3: shares are up two percent in early training. Apple did
Speaker 3: blame a surprise decline in China revenue on supply disruptions,
Speaker 3: but it's predicting it will return to growth in the
Speaker 3: world's biggest smartphone arena as the iPhone seventeen gains momentum.
Speaker 3: Mark German is Managing Tech editor for Bloomberg News.
Speaker 4: What stands out here is iPhone obviously grew tremendously six
Speaker 4: percent year. Every year, they beat in nearly every product
Speaker 4: category except the iPad. Had an extremely slight miss on
Speaker 4: Wall Street forecast, and again those are just forecast numbers
Speaker 4: that get made up anyways, so I don't think too
Speaker 4: big of a deal there. The big one, though, is
Speaker 4: a big decline in miss in Greater China. I think
Speaker 4: some of that can be attributed to the iPhone air delay,
Speaker 4: which was not expected, and they originally announced the iPhone.
Speaker 3: Air Bloomberg's Mark German says Apple's iPhone seventeen and seventeen
Speaker 3: pro got off to a fast start in September, with
Speaker 3: twenty nine percent year on year China sales growth in
Speaker 3: the first two weeks of October.
Speaker 2: Well, the big tech winner this morning, Nathan is Amazon.
Speaker 2: Those shares are more than twelve and a half percent.
Speaker 2: Amazon's cloud unit posted the strongest growth rate in almost
Speaker 2: three years. Amazon Web Services reported third quarter revenue of
Speaker 2: thirty three billion dollars. That's an increase of twenty percent
Speaker 2: from the prior year and the biggest year over year
Speaker 2: rise since the end of twenty twenty two. Punam Goyle
Speaker 2: as senior retail analyst at Bloomberg Intelligence.
Speaker 5: They hit it out of the park. Sales ver very
Speaker 5: get across the board, across all business segments, AWS, online advertising,
Speaker 5: even physical stores. So from a top line perspective, very
Speaker 5: very encouraging results. In fact, AWS was probably the bright
Speaker 5: spot here. Twenty percent gains. We haven't seen that in
Speaker 5: a while.
Speaker 2: And Bloomberg Intelligence senior retail analyst Punham Goyles has Amazon's
Speaker 2: total sales rows thirteen percent to more than one hundred
Speaker 2: and eighty billion dollars.
Speaker 3: Gar Netflix shares are moving higher this morning as well.
Speaker 3: The streaming giant has announced a stock split. Let's get
Speaker 3: more from Bloomberg's John Tucker, John and Nathan.
Speaker 6: This is the second split in the last ten years
Speaker 6: for the streaming industry leader, Netflix, approving a ten for
Speaker 6: one stock split. The company wants to make a share
Speaker 6: price more accessible for employees who take part in the
Speaker 6: company stock option program. Netflix is one of only ten
Speaker 6: in the S and P five hundred with a share
Speaker 6: price above one thousand dollars stockholders of record at the
Speaker 6: close of trading November tenth, they're going to receive nine
Speaker 6: additional shares for every share held. At the same time,
Speaker 6: Netflix is kicking the tires over at Warner Brothers Discovery.
Speaker 6: Reuter's is the latest news service to report Netflix is
Speaker 6: exploring a bid for their studio and streaming businesses. Bloomberg
Speaker 6: New was reported earlier that Netflix and Comcast are weighing
Speaker 6: bids for parts of that company. Netflix shares up over
Speaker 6: three percent pre market this morning. You New York Ime,
Speaker 6: John Tucker, Bloomberg Radio.
Speaker 2: All right, John, thank you well. Bloomberg News has learned
Speaker 2: Intel as in preliminary talks to buy artificial intelligence chip
Speaker 2: startup Samba Nova Systems. Sources say any deal would likely
Speaker 2: value Samba Nova at below the five billion dollars he
Speaker 2: garnered in a twenty twenty one funding round. Samba Nova
Speaker 2: designs custom AI chips that aim to rival those offered
Speaker 2: by in Video Well.
Speaker 3: Speaking of in Vidia, Karen Bloomberg News has learned the
Speaker 3: AI chip giant plans to back another AI startup. Sources
Speaker 3: say plans to invest as much as a billion dollars
Speaker 3: in Poolside. In another development, in Video CEO Jensen wogtold
Speaker 3: reporters he still hopes to sell chips from the company's
Speaker 3: Blackwell lineup to customers in China, though he has no
Speaker 3: current plans to do so. Speaking this morning at the
Speaker 3: APEX CEO summit in South Korea, Wang talked about the
Speaker 3: AI revolution.
Speaker 7: This year, AI became profitable, and when something becomes profitable,
Speaker 7: you want to manufacture more of it, just like when
Speaker 7: you're manufacturing chips and wafers and dram If the manufacturing
Speaker 7: of those chips were profitable, you want to build more
Speaker 7: factories to create more chips.
Speaker 3: And earlier this week, Jensen Wongs and Vidia became the
Speaker 3: first company to reach a five trillion dollar market cap,
Speaker 3: and checking the shares right now, they're up nearly two percent.
Speaker 2: Well, Nathan, let's get to the latest. Now on the
Speaker 2: US China trade shrews, Chinese President Xi Jinping is warning
Speaker 2: the world not to break supply chains. She's remarks at
Speaker 2: the APEX summit in South Korea came after he sealed
Speaker 2: a deal with President Trump to put rare earth restrictions
Speaker 2: on hold for a year, while the US will roll
Speaker 2: back some tariffs and export controls also for a year.
Speaker 2: Treasury Secretary Scott Besson says this keeps the relationship on
Speaker 2: hold for now.
Speaker 8: My guess is a hear from now will be back
Speaker 8: to the table and we'll get another another delay, another role.
Speaker 8: Because what everyone misses is the Chinese have rarers, but
Speaker 8: you know we have President Trump's threat on tariffs. He
Speaker 8: gave the team maximum negotiating leverage.
Speaker 2: And Treasury Secretary is go on bess and smoke on
Speaker 2: Fox News, we get more on President She's or marks
Speaker 2: from Bloomberg's jail desis in Hong Kong.
Speaker 9: You're seeing something that's really kind of like outwardly focused
Speaker 9: on that idea of building unity within the region in particular.
Speaker 9: I think, you know obviously that freder Hick Aside from
Speaker 9: chi Jinping, you know, we've certainly seen some concerns elsewhere
Speaker 9: in the region, particularly from Western companies who are concerned
Speaker 9: about being left out of the invest of market. We
Speaker 9: know that China itself has very many challenges within its
Speaker 9: domestic economy that it's really sort of focused on, and
Speaker 9: has actually made several efforts this year to try to
Speaker 9: build up those messic industries.
Speaker 2: And Bloombergs deil Desis reports she used his speech to
Speaker 2: tell some seven hundred billion dollars in foreign investment that
Speaker 2: Shina has brought in over the last five years.
Speaker 3: And Washington Care and the government and shutdown has now
Speaker 3: lasted a full month. On this thirty first day of
Speaker 3: the funding fight, President Trump is calling on Senate Republicans
Speaker 3: to end it by taking Democrats out of the picture.
Speaker 3: In a social media post late last night, the President wrote,
Speaker 3: in all caps, initiate the nuclear option, get rid of
Speaker 3: the filibuster, and make America great again. Senate majority leader
Speaker 3: John Thune says he has not had those discussions with
Speaker 3: the White House. He says Democrats want to prolong the shutdown.
Speaker 2: It's all a ball leverage.
Speaker 8: That's what they're making.
Speaker 10: It all about. Leverage.
Speaker 3: The Majority Leader, John Thune spoke on the Senate floor
Speaker 3: as the CEOs of four major airlines met with Vice
Speaker 3: President JD. Vance at the White House. With air traffic
Speaker 3: delays piling up during the shutdown, I worry about the
Speaker 3: pilots who haven't gotten paid in a long time. I
Speaker 3: worry about the air draft controllers, who, of course make
Speaker 3: this entire system extra safey. Vice President Vance met with
Speaker 3: the CEOs of United American, Delta, and Southwest Airlines. They
Speaker 3: called on Democrats to back the Republicans clean stop gap
Speaker 3: spending bill.
Speaker 2: It's time now for a look at some of the
Speaker 2: other stories making news in New York and around the world,
Speaker 2: and for that we're joined by Bloomberg's Michael Barr Michael,
Speaker 2: good Morning.
Speaker 10: Good Morning, Karen. Buckingham Palace says that King Charles is
Speaker 10: stripping his brother Prince Andrew of his remaining titles and
Speaker 10: evicting him from his royal residence. The move follows revelations
Speaker 10: about Andrew's relationship with convicted sex offender Jeffrey Epstein. Greg
Speaker 10: Gross is a UK Royals expert at King's College in London.
Speaker 5: He's taken the maximum steps that I think are available
Speaker 5: to him, and this is about getting the house in order.
Speaker 10: The palace, says Prince Andrew will now be known as
Speaker 10: Andrew Mountbatten Windsor. Two people were found dead in flooded
Speaker 10: basements after heavy rains in New York City yesterday. In
Speaker 10: one case, a Brooklyn victim was a thirty nine year
Speaker 10: old man. In Upper Manhattan, another man also drowned from
Speaker 10: flooding in a basement late last night, the FAA issued
Speaker 10: a temporary ground stop for Newark Airport in New Jersey
Speaker 10: due to staffing issues. It comes as a Jet Blue
Speaker 10: flight from Cancun to Newark was diverted to Tampa, Florida
Speaker 10: Thursday after a sudden altitude drop led to multiple passengers
Speaker 10: being hospitalized. It may not be the lover, but the
Speaker 10: theft is no less devastating to the operators of the
Speaker 10: Oakland Museum of California. Police say suspects stole more than
Speaker 10: one thousand items from the museum's collection, including metalwork, jewelry,
Speaker 10: and Native American baskets. Museum director and CEO Lori Foguty.
Speaker 11: We imagine a lot of this kind of material might
Speaker 11: end up in a pawn shop or an antique store,
Speaker 11: or even a flea market or swap meet, which is
Speaker 11: why it's so important to get the word out to
Speaker 11: the public, because people may see something that looks kind
Speaker 11: of not like it should be there.
Speaker 10: Museum director Lorii Fogerty says the theft happened on October
Speaker 10: fifteenth at an off site storage facility. Global News twenty
Speaker 10: four hours a day and whenever you want to with
Speaker 10: the Bloomberg News. Now, I'm Michael Barrn. This is Bloomberg Karen.
Speaker 1: Thanks Michael.
Speaker 2: Time now for our Bloomberg Sports update, and for that
Speaker 2: we bring in John Stashauer.
Speaker 12: Thanks Daron. Week nine in the NFL Underway in Miami,
Speaker 12: Baltimore got at star quarterback Lamar Jackson back after missing
Speaker 12: the last three games. He threw four touchdown passes. The
Speaker 12: Ravens beat the Dolphins twenty eight to six. They'll play
Speaker 12: Games six of the World Series tonight in Toronto, and
Speaker 12: the Blue Jays lead the Dodger three games to two.
Speaker 12: They can win their first championship in thirty two years.
Speaker 12: New manager of the Washington Nationals is Blake Puterra. He's
Speaker 12: only thirty three years old. He'll be the youngest in
Speaker 12: the majors in fifty years. He started his minor league
Speaker 12: managing at age twenty five. That's a Bloomberg Sports update.
Speaker 2: Stay with us. More from Bloomberg Day Break coming up
Speaker 2: after this.
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
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Speaker 1: Bloomberg Business opp This is Bloomberg Day Breas.
Speaker 3: Good morning, I'm Nathan Hager on a very good morning
Speaker 3: for big tech investors. The big lift of the market
Speaker 3: after the latest earnings from two of the Magnificent seven,
Speaker 3: and Amazon is leading the charge after posting its fastest
Speaker 3: growth in the cloud in about three years, while Apple's
Speaker 3: forecast for the holidays may be overshadowing some disappointment in China.
Speaker 3: Joining us now is Dan Ives, globalhead of Tech Research
Speaker 3: at web Bush Securities. Dan, good morning. Let's start off
Speaker 3: with Amazon. We are seeing a big surge in those
Speaker 3: shares after Amazon Web Services posted a twenty percent year
Speaker 3: over year growth number. Is that gonna be enough to
Speaker 3: keep up after what we saw from Azure and Google
Speaker 3: Cloud this week?
Speaker 13: Yeah? Nathan, this is a breakout quarter from Amazon. And
Speaker 13: you know, did dyben on the outside looking in of
Speaker 13: the AI revolution and these numbers show they're now starting
Speaker 13: to see massive demand. And look, the New York City
Speaker 13: cab driver is embarrass from Amazon.
Speaker 10: Right.
Speaker 13: So I think this is a huge movement from Amazon,
Speaker 13: and I think you're going to see the Amazon bulls.
Speaker 13: They'll be enjoying their candy on Halloween.
Speaker 3: Okay, Well, of course, coming into these earnings, we had
Speaker 3: the outage at AWS. Does that still pose a concern
Speaker 3: for Amazon investors?
Speaker 13: Well, gold standard, the reality is was that a little
Speaker 13: black eye moment? Yeah, but it's not moving the new
Speaker 13: relative to Amazon. Look, I think the key here is
Speaker 13: that the advertising business looks strong, the AWUS business looks
Speaker 13: like it's accelerated. And for a company that's really been
Speaker 13: back against the wall, it's a huge breakout quarter. Now,
Speaker 13: you know, I mean three thirty is are a new
Speaker 13: price target. But I mean this is a stock that
Speaker 13: could really have legs over the next sixty nine months.
Speaker 3: And of course the shares are trading around two point
Speaker 3: fifty pre market this morning. Is Amazon justifying the spend
Speaker 3: on AI? It hit a record in the quarter thirty
Speaker 3: four point two billion dollars. Of course, we saw all
Speaker 3: the blockbuster numbers from some of these other AI players
Speaker 3: as well. In terms of what Amazon is reporting on
Speaker 3: its AI spend. Is that justified?
Speaker 13: Look, it's an AI arms race. They have to spend.
Speaker 13: I mean, look at Microsoft, look at Google, look at Meta.
Speaker 2: Hey.
Speaker 13: Look the reality is this is an AI party. Okay,
Speaker 13: it start at nine pm, it's down ten thirty pm,
Speaker 13: party goes to four am. No tech company wants to
Speaker 13: be on the outside looking in, and for Amazon, investors
Speaker 13: want to see them spend to make sure they monetize
Speaker 13: this fourth Industrial revolution?
Speaker 3: Is Apple still on the outside looking in?
Speaker 10: For you?
Speaker 3: There's been a lot of talk heading into their earnings
Speaker 3: and over the last several quarters about how much catch
Speaker 3: up Apple needs to do in the AI race.
Speaker 13: Book from the AI party they're looking through through the
Speaker 13: window from the outside, right or everyone else on the
Speaker 13: dance for But for Apple, the reality is iPhone seventeen
Speaker 13: looks strong. That's a huge positive. And I believe this
Speaker 13: is a drum roll. They're going to partner with Google
Speaker 13: for a mejor AI partnership, and that from a consumer perspective,
Speaker 13: that's gonna be a huge wrap. I know that could
Speaker 13: be seventy five two hundred dollars per share. That's why
Speaker 13: for Apple twenty twenty six, I think is going to
Speaker 13: be their year.
Speaker 3: In terms of what we saw in the quarter from Apple,
Speaker 3: A lot of focus for investors on the outlook after
Speaker 3: the kind of a slowdown in China. Is China still
Speaker 3: a concern?
Speaker 13: China actually looks like it's showing met your growth into
Speaker 13: next quarter because iPhone seventeen the air looks very strong.
Speaker 13: I mean, i'd call those almost like Otani like guidance
Speaker 13: for the December quarter, which is why the stock's going
Speaker 13: to be up. And I think now you're starting to
Speaker 13: look at the company's finally get back into mojo. You
Speaker 13: have a lot of good news in the horizon, and
Speaker 13: that's why. Look, I think from a large cap perspective,
Speaker 13: Apple and Amazon are basically saying, don't forget about us,
Speaker 13: and that was a huge validation what we saw last night.
Speaker 3: It was interesting, though, to hear on the call of
Speaker 3: Apple saying that they're facing supply constraints that have kept
Speaker 3: the iPhone revenue slightly below expectations. What about the possibility
Speaker 3: of further supply constraints in quarters to come.
Speaker 13: Look, they're trying to do a dance around with tariffs, right,
Speaker 13: I mean Cook ten percent politician, ninety percent CEO. So
Speaker 13: we started to advocate that in terms of Trump administration,
Speaker 13: we've seen that. But there are some supplies shoes. I
Speaker 13: think a lot of those get rectified going into the
Speaker 13: next quarter and the quarter after. This is a company
Speaker 13: that's had a lot of growth issues nowhere in AI,
Speaker 13: but it feels like now they're starting to really turn around,
Speaker 13: which I think that's why, like you know, four trillion,
Speaker 13: I think we're going to be looking at five trillion
Speaker 13: dollars mark cap in the next year.
Speaker 3: Of course, in Vidio just hit a five trillion dollar
Speaker 3: market cap just this week, and Jensen Wang, the CEO,
Speaker 3: is trying to make a lot of deals at the
Speaker 3: APEX summit in South Korea. What do you make of
Speaker 3: some of the latest announcements this, for example, a billion
Speaker 3: dollar investment in Poolside.
Speaker 13: Look, I love everything the Godfather of AI Jensen's done,
Speaker 13: because they're planting flags around the world. This is we're
Speaker 13: still in the second inning of where this is all
Speaker 13: heading and it all starts in the video they're foundation
Speaker 13: to where everything is heading, and they're making the smart
Speaker 13: moves and that's exactly what they need to do at
Speaker 13: the right time. And there's one there's one ship in
Speaker 13: the world viewing the AI revolution and it's in video.
Speaker 3: And there's still talk, including from Jensen Wong himself, that
Speaker 3: he'd like to be able to sell Blackwell chips into China.
Speaker 3: Do you see that as a possibility that that could
Speaker 3: be coming.
Speaker 13: Oh yeah, I think that's going to be the biggest
Speaker 13: chip in the poker table when it comes to Trump
Speaker 13: making sure Nvidia could sell back into China. That's significant. Look,
Speaker 13: they're not going to go from ninety five percent market
Speaker 13: share to zero and China big tech wands in Vidia chips.
Speaker 13: That continues to be the gold standard in terms of
Speaker 13: where it's all heading.
Speaker 3: Our last thirty seconds, Dan, Overall, from what we've seen
Speaker 3: from the mag seven so far, we've got Apple and
Speaker 3: Amazon on the rise. This morning, course, Microsoft and Meta
Speaker 3: fell after their earnings. How do you see how these
Speaker 3: companies have shaken out so far?
Speaker 13: They met the hype and even with Meta selling up,
Speaker 13: they're sewing up because they're spending more on cap backs,
Speaker 13: which is ultimately bullets for the AI revolution. Look, the
Speaker 13: reality is is that this is a tech bow market
Speaker 13: and the bears in hibernation mode can see AI in
Speaker 13: the spreadsheets. But the reality is this, this is a
Speaker 13: market going much higher, led by big tech, and I
Speaker 13: think that's really the head one that receive from earners.
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