WEBVTT - Bloomberg Daybreak: April 29, 2022 - Hour 2 (Radio) 0:00:02.360 --> 0:00:05.160 Live from the Bloomberg and Directed Brookers Studios. This is 0:00:05.160 --> 0:00:09.480 Bloomberg Daybreak for Friday, April two. Coming up this hour. 0:00:09.760 --> 0:00:12.879 Apple has a record quarter, but the forecast sends the 0:00:12.920 --> 0:00:16.000 stock lower. Amazon share slide as the company posts a 0:00:16.079 --> 0:00:19.880 loss on higher costs. Elon Musk unloads Tesla shares to 0:00:19.920 --> 0:00:22.759 help pay for his takeover of Twitter, and Russian missiles 0:00:22.840 --> 0:00:26.520 strike Ukraine's capital Keith, New York City. The lay's pain 0:00:26.680 --> 0:00:29.320 rules that are meant to close the gender gap, plus 0:00:29.440 --> 0:00:32.400 the days of flavored cigarettes and cigars may be numbered 0:00:32.600 --> 0:00:35.800 on Michael larn More, ADM John dash Hour and swards. 0:00:35.800 --> 0:00:38.360 The Jets and Giants with two top ten draft picks 0:00:38.400 --> 0:00:41.640 both went defense, then offense the Yankees when there's sixth 0:00:41.640 --> 0:00:47.000 in their own that's all training ahead on Bloomberg Daybreak 0:00:47.320 --> 0:00:51.640 on Bloomberg eleven three on New York, Bloomberg one, Washington, 0:00:51.720 --> 0:00:55.360 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:55.400 --> 0:00:59.720 sixties and Francisco Sirius XAM one nineteen and around the 0:00:59.720 --> 0:01:02.480 world Old on Bloomberg Radio dot Com and via the 0:01:02.560 --> 0:01:09.720 Bloomberg Business App. Good Morning, I'm Nathan Hagar, and I'm 0:01:09.800 --> 0:01:13.560 Karen Moscow. In US not Index futures are lower this morning. 0:01:13.560 --> 0:01:15.520 We are coming up to six o one on Wall Street, 0:01:15.560 --> 0:01:17.760 and we check the markets every fifteen minutes throughout the 0:01:17.760 --> 0:01:20.520 trading day. On Bloomberg right now, S and P futures 0:01:20.800 --> 0:01:24.040 down about twenty nine points down, futures down a hundred thirteen, 0:01:24.080 --> 0:01:27.760 and NASDAG futures down one thirty. The decks in Germany 0:01:27.920 --> 0:01:30.479 is up one percent, the ten year treasury down twelve 0:01:30.480 --> 0:01:33.360 thirty seconds, held two point eight seven percent, and the 0:01:33.440 --> 0:01:35.679 yield on the two year two point six eight percent. 0:01:35.880 --> 0:01:38.880 Nathan Karen, we begin this morning with market reaction to 0:01:38.920 --> 0:01:42.120 the latest slew of earnings. Apple shares are down two 0:01:42.120 --> 0:01:44.800 and a half percent in early trading. It had records 0:01:44.800 --> 0:01:48.840 setting earnings, but those are being overshadowed by the iphonemaker's forecast. 0:01:49.200 --> 0:01:52.280 Apple predicts supply constraints will cost four to eight billion 0:01:52.360 --> 0:01:55.520 dollars in revenue during the current quarter. CEO Tim Cook 0:01:55.560 --> 0:01:58.520 addressed the issue on the company's conference call. I want 0:01:58.520 --> 0:02:02.559 to acknowledge the challenges we're seeing from supply chain disruptions 0:02:02.640 --> 0:02:06.800 driven by both COVID and silicon shortages, to the devastation 0:02:06.960 --> 0:02:10.360 from the war in Ukraine. We are not immune to 0:02:10.400 --> 0:02:15.160 these challenges. Apple CEO Tim Cook also announced ninety billion 0:02:15.160 --> 0:02:18.600 dollars in new stock buybacks. Well Nathan Chairs of Amazon 0:02:18.760 --> 0:02:21.480 or down amost nine percent this morning. The e commerce 0:02:21.520 --> 0:02:24.240 giants said a loss money during the first quarter and 0:02:24.280 --> 0:02:27.680 may see another loss in the current period. Amazon's Cloud 0:02:27.840 --> 0:02:32.000 Services division AWS continued to impress, but a hiring and 0:02:32.040 --> 0:02:35.320 warehouse building binge during the pandemic weight on the bottom line. 0:02:35.520 --> 0:02:40.120 Punham Goyle covers Amazon for Bloomberg Intelligence. For a long time, 0:02:40.400 --> 0:02:46.400 a WS has been able to offset the weaker retail business, 0:02:46.440 --> 0:02:49.960 but it's not enough. With growth slowing on the top 0:02:50.040 --> 0:02:54.840 line across the online business, the foster rising just too 0:02:54.880 --> 0:02:59.320 fast for them to herb those higher cooks. Bloomberg Intelligence 0:02:59.360 --> 0:03:01.880 analysts poon Um Goyle says, for the first time ever, 0:03:02.040 --> 0:03:05.040 Amazon recorded back to back quarters of less than ten 0:03:05.120 --> 0:03:07.600 percent revenue growth. All right, let's check out some other 0:03:07.600 --> 0:03:10.160 stocks on the move this morning. Karen shares of Intel 0:03:10.240 --> 0:03:12.600 are down three and a half percent. The chip maker 0:03:12.639 --> 0:03:16.560 gave disappointing sales and profit forecast, indicating weaker demand. Robin 0:03:16.600 --> 0:03:20.160 Hood shares are down eleven percent. The financial upstart says 0:03:20.200 --> 0:03:24.360 first quarter revenue tumbled well, Nathan. We wrap up a 0:03:24.400 --> 0:03:27.160 busy week for earnings with Big Oil and Focus and 0:03:27.360 --> 0:03:29.640 x On Mobile reports. This morning, we get a preview 0:03:29.680 --> 0:03:33.440 from Bloomberg's Tom Busby. After Russia's invasion of Ukraine sent 0:03:33.520 --> 0:03:36.280 crude prices surging over the past two months along with 0:03:36.320 --> 0:03:39.560 global demand, It's boom times right now for the nation's 0:03:39.600 --> 0:03:42.960 biggest oil producers, and because of that, Exxon Mobile is 0:03:43.040 --> 0:03:46.000 expected to post its biggest quarterly profit in more than 0:03:46.080 --> 0:03:49.880 a decade. Investors will be looking for guidance on increased 0:03:49.880 --> 0:03:53.440 crude production and possibly more shared by backs and higher dividends. 0:03:53.760 --> 0:03:57.280 I'm Tom Busby, Bloomberg Daybreak. Thanks Tom. Earning so far 0:03:57.320 --> 0:03:59.920 if not turned around market sentiment. In fact, the SMP 0:04:00.760 --> 0:04:02.960 enters this final trading day of April on track for 0:04:03.000 --> 0:04:06.040 the worst month since the pandemic bear market. More from 0:04:06.080 --> 0:04:09.560 Bloomberg's Charlie Pellett. The SMP is showing a month to 0:04:09.680 --> 0:04:13.800 day loss of five point four percent. By comparison, this month, 0:04:13.920 --> 0:04:17.040 Nasdaq is down nine and a half percent, while the 0:04:17.120 --> 0:04:21.040 Dow is down two point two percent. Volatility has been 0:04:21.080 --> 0:04:24.839 eight persistent feature in markets all year, with investors on 0:04:25.000 --> 0:04:29.680 edge over China's struggle to suppress COVID, Russia's war in Ukraine, 0:04:29.920 --> 0:04:33.120 and worries that central bank tightening may tip the U 0:04:33.200 --> 0:04:37.320 s economy into a recession. In New York, Charlie Pellett 0:04:37.400 --> 0:04:40.120 Bloomberg Daybreak, all right, turning thank you Well? In Asia 0:04:40.160 --> 0:04:43.000 has a different story for stocks today. A Chinese technology 0:04:43.040 --> 0:04:46.279 shares jumped after new policy promises from the country's top 0:04:46.360 --> 0:04:49.520 leaders to bolster the economy and markets. Let's get the 0:04:49.560 --> 0:04:53.000 recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliet, 0:04:53.120 --> 0:04:55.160 Good morning Karen. The m c I Asia Pacific in 0:04:55.320 --> 0:04:57.240 x rose for a third time this week, with ten 0:04:57.320 --> 0:04:59.480 Cent and Ali Baba among the biggest gate is the 0:04:59.520 --> 0:05:02.599 Hang Sang Take index sword more than ten percent, rebounding 0:05:02.640 --> 0:05:05.640 from earlier losses as the country vowed to support healthy 0:05:05.640 --> 0:05:09.040 growth of platform companies shortly before the measures were unveiled. 0:05:09.120 --> 0:05:12.680 Chinese tex stalks reversed earlier losses as trade has speculated 0:05:12.680 --> 0:05:16.000 about a possible relaxation of the year long regulatory clampdown, 0:05:16.279 --> 0:05:19.080 and China's You unstrengthened a little during the day's trade, 0:05:19.120 --> 0:05:21.560 but his poised for a record monthly drop as the 0:05:21.600 --> 0:05:25.640 economy suffers from lockdowns resulting from the nation's COVID zero policy. 0:05:26.000 --> 0:05:30.160 In Sydney, Juliette Sally Bloomberg Daybreak. All right, Juliet, thank 0:05:30.200 --> 0:05:33.760 you the We're getting more details this morning on how 0:05:33.800 --> 0:05:37.120 Elon Musk is financing his Twitter takeover. Let's get the 0:05:37.200 --> 0:05:39.880 latest live on that from Bloomberg's Rnita Young. Good morning, Granita, 0:05:39.920 --> 0:05:42.880 Good morning Nathan. While Street suspected Elon Musk would have 0:05:42.880 --> 0:05:45.200 to sell some stock to cover the twenty one billion 0:05:45.200 --> 0:05:48.320 dollar equity portion of his Twitter deal, now a filing 0:05:48.400 --> 0:05:52.080 shows Musk offloaded about four billion dollars worth of Tesla stock. 0:05:52.520 --> 0:05:55.919 Shortly after those filings were made public, Musk tweeted no 0:05:56.040 --> 0:06:00.640 further Tesla se sales were planned meantime, Bloomberg sources say 0:06:00.640 --> 0:06:03.280 before the deal was announced, Musk floated the idea of 0:06:03.279 --> 0:06:07.320 cutting both jobs and costs at Twitter. On calls with bankers. 0:06:07.600 --> 0:06:11.480 Musk also discussed ideas to monetize the platform to boost 0:06:11.520 --> 0:06:16.080 cash flow, including a potential subscription service to drive recurring revenue. 0:06:16.480 --> 0:06:18.960 Live in New York, I'm gonna need a Young Bloomberg Daybreak, 0:06:19.080 --> 0:06:20.919 All right, we need to thank you. Let's shift years 0:06:21.000 --> 0:06:23.480 now and get to the latest on Ukraine. Russian missile 0:06:23.560 --> 0:06:26.000 struck Kiev overnight, but the battle for don Boss is 0:06:26.000 --> 0:06:29.560 still Russia's strategic focus. Meantime, here in the US, President 0:06:29.640 --> 0:06:32.680 Biden is asking Congress for thirty three billion dollars in 0:06:32.760 --> 0:06:35.760 aid to Ukraine, but the road to approval won't be easy, 0:06:35.800 --> 0:06:39.120 and Bloomberry said, Baxter has the story. The Ukraine part 0:06:39.240 --> 0:06:42.720 has broad support across Congress, but at risks getting snarled 0:06:42.760 --> 0:06:46.040 in his ask for COVID funding and immigration. The Senate 0:06:46.040 --> 0:06:48.719 could vote on the emergency spending next week, but the 0:06:48.720 --> 0:06:52.480 House will be on recess, so Congress could finish by 0:06:52.480 --> 0:06:54.800 the week of May nine and send it to the President. 0:06:54.880 --> 0:06:59.039 But if Democrats insist on attaching long stalled funding for 0:06:59.120 --> 0:07:05.560 vaccinations and immigration costs, it could be delayed indefinitely. Biden 0:07:05.600 --> 0:07:09.360 did urge Democrash to pass them together. In San Francisco, 0:07:09.400 --> 0:07:12.080 I'm at Baxter Bloomberg daybreak. All right, ed, thank you. 0:07:12.240 --> 0:07:15.320 Futures are moving lower this morning. Straight ahead, your latest 0:07:15.320 --> 0:07:18.920 local headlines, and a check of sports. This is Bloomberg. 0:07:22.800 --> 0:07:24.960 It sounds six o seven on Wall Street, forty two 0:07:24.960 --> 0:07:27.360 degrees in Central Park. Got an accident on the westbound 0:07:27.480 --> 0:07:30.040 l I eight the Seaford Oyster Bay expressed way details 0:07:30.080 --> 0:07:32.480 coming up in traffic First Michael bar with more on 0:07:32.560 --> 0:07:34.239 what's going on in New York and around the world. 0:07:34.280 --> 0:07:37.400 Michael Nathan, Thank you kindly. New York City has postponed 0:07:37.440 --> 0:07:41.080 one of the nation's most far reaching requirements for employers 0:07:41.120 --> 0:07:44.200 to tell job seekers what they can make. Such pay 0:07:44.320 --> 0:07:49.000 transparency laws are championed as giving applicants, particularly women and 0:07:49.080 --> 0:07:51.880 people of color, a better shot at fair pay. The 0:07:51.960 --> 0:07:54.000 law was supposed to take effect in May, but the 0:07:54.000 --> 0:07:57.720 City Council voted yesterday to delay it for five months 0:07:57.760 --> 0:08:02.320 after employers waived red fly eggs. The law says employers 0:08:02.400 --> 0:08:05.640 with four or more workers must include a minimum and 0:08:05.800 --> 0:08:09.520 maximum salary in any job. At New York State is 0:08:09.560 --> 0:08:12.320 setting aside more than thirty one billion dollars and this 0:08:12.440 --> 0:08:15.760 year's budget for schools. Governor Kathy Oakeles has more than 0:08:15.800 --> 0:08:19.000 three hundred sixty million dollars in this fiscal year will 0:08:19.040 --> 0:08:22.360 help students and teachers and yonkers bounce back from the pandemic. 0:08:23.880 --> 0:08:28.280 They have just signed a budget, supported a budget they 0:08:28.360 --> 0:08:33.800 had the highest investment in education in our state's history. 0:08:34.040 --> 0:08:38.040 Governor hokel says every penny is worth it. Funeral services 0:08:38.040 --> 0:08:41.040 are sent for today for fallen f D n Y 0:08:41.200 --> 0:08:45.560 firefighter Timothy Klein. Klein died Sunday while finding a blaze 0:08:45.559 --> 0:08:48.240 in Brooklyn. Services will take place for the thirty one 0:08:48.320 --> 0:08:51.199 year old in Bell Harbor. A twenty one year old 0:08:51.240 --> 0:08:54.800 man who had autism also died in that blaze. In 0:08:54.960 --> 0:08:58.400 the Southwest, thousands of firefighters have continued to slow the 0:08:58.400 --> 0:09:02.200 advance of destructive wild fires, but i winds return today 0:09:02.280 --> 0:09:04.440 that sparked the spread of the blazes a week ago. 0:09:04.920 --> 0:09:07.400 More than a hundred sixty homes have been destroyed in 0:09:07.520 --> 0:09:12.120 one rural county in northeast New Mexico. The FDA wants 0:09:12.160 --> 0:09:17.360 demand menthol cigarettes and flavored cigars. FDA Commissioner Robert Caliph 0:09:17.600 --> 0:09:21.840 says studies that show the menty taste and cooling effects 0:09:21.840 --> 0:09:25.720 of menthal and cigar flavors like strawberry and grape increase 0:09:25.800 --> 0:09:29.240 the appeal for adults and young smokers alike. We really 0:09:29.280 --> 0:09:32.440 want to emphasize this. It's not just um. We want 0:09:32.440 --> 0:09:35.960 to take away mental in cigarettes as we want to 0:09:36.040 --> 0:09:42.040 help people stop this uh um smoking which is causing 0:09:42.040 --> 0:09:45.680 so much depth and disability. FDA Commissioner calif says menthol 0:09:45.720 --> 0:09:48.199 cigarettes account for more than a third of all cigarettes 0:09:48.200 --> 0:09:51.240 sales in the US. Global News twenty four hours a 0:09:51.360 --> 0:09:54.079 day on air and on Bloomberg Quick Take, powered by 0:09:54.080 --> 0:09:56.960 more than twenty seven hundred journalists analysts in more than 0:09:56.960 --> 0:10:01.040 a hundred twenty countries. Michael Bart, this is Bloomberg. Thank you, Michael. 0:10:05.679 --> 0:10:07.680 Almost six ten on Wall Street. Time for the Bloomberg 0:10:07.679 --> 0:10:10.040 Sports Update with John Stisham. All Right, Nathan's second in 0:10:10.120 --> 0:10:13.000 a row. The NFL draft again with Jacksonville. The Jacks 0:10:13.000 --> 0:10:16.520 took Georgia pass rusher Trevon Walker that allowed Michigan's defensive 0:10:16.600 --> 0:10:19.120 end Aidan Hutchinson to stay home. With Detroit, Houston took 0:10:19.600 --> 0:10:22.160 l s U cornerback Derek Stingley, and the Jets, picking 0:10:22.240 --> 0:10:27.080 fourth overall, took another cornerback, Cincinnati's ahm Odds Sauce Gardener. 0:10:27.200 --> 0:10:29.960 Not once in college did Gardener allowed the receiver who 0:10:30.040 --> 0:10:32.719 was defending the score a touchdown. Giants were next, their 0:10:32.760 --> 0:10:35.320 pick announced, not quite Commissioner Roger Gadell, but by nineteen 0:10:35.360 --> 0:10:38.400 year old New Jersey resident Sam Prince, who showed great 0:10:38.400 --> 0:10:40.840 exuberant he has a heart and lunk condition was part 0:10:40.880 --> 0:10:42.960 of the Make a Wish program. With the fifth pick, 0:10:43.600 --> 0:10:47.280 and it's quatint to NFL Draft, the New York Football 0:10:47.400 --> 0:10:53.240 Giants select Cavan Tibodel, once projected to be the first 0:10:53.280 --> 0:10:55.560 pick of the draft. Should help a Giant's pass rush 0:10:55.640 --> 0:10:58.800 that was virtually non existing last season. There offensive line 0:10:58.800 --> 0:11:01.480 also struggles to two ks later, the Giants took Alabama 0:11:01.520 --> 0:11:04.480 tackle Evan Neil. The top ten ended with other Jets 0:11:04.480 --> 0:11:08.120 pick Ohio State white out Garrett Wilson. So Zach Wilson 0:11:08.160 --> 0:11:10.719 will throw passes to Garrett Wilson. Rounds two and three 0:11:10.720 --> 0:11:13.440 of the draft tonight in Las Vegas. Quite a homestaff 0:11:13.440 --> 0:11:16.480 of the Yankees. Six game six wins ten five over Baltimore, 0:11:16.520 --> 0:11:19.920 three went home for Aaron Judge five Baltimore errors. That's 0:11:19.920 --> 0:11:22.439 one more than the Yanks had all season. NBA playoffs 0:11:22.480 --> 0:11:25.880 three game sixes all were series clinching wins on the road, 0:11:25.880 --> 0:11:29.439 Philadelphia just one at halftime, Sixers one by thirty five 0:11:29.520 --> 0:11:32.400 in Toronto, Dallas one by two in Utah, and Phoenix 0:11:32.440 --> 0:11:36.200 one in New Orleans. The Sons Chris Paul took fourteen shots. 0:11:36.200 --> 0:11:40.080 He made all fourteen John stash Eller Bloomberg Sports John, 0:11:40.120 --> 0:11:42.960 thank you. SMP futures down twenty nine points, Staff futures 0:11:42.960 --> 0:11:46.600 down a hundred thirteen NASTAC futures leading the declines, down 0:11:46.600 --> 0:11:49.120 a hundred twenty nine points, are almost one percent to ten. 0:11:49.200 --> 0:11:52.480 Your treasuries down thirteen thirty seconds. The yield two point 0:11:52.520 --> 0:11:56.760 eight seven percent. Apple and Amazon shares continue their slide 0:11:56.800 --> 0:12:00.320 after earnings will get analysis next with Alex winn Ub 0:12:00.679 --> 0:12:08.080 of Bloomberg Quicktake and Bloomberg Opinion. This is Bloomberg Bloomberg 0:12:08.080 --> 0:12:10.760 eleven three oh weather mostly sunny, breezy, low sixties. To 0:12:10.760 --> 0:12:14.520 wrap up the week, Bailey sunny Tomorrow, low sixties, clouds increase. 0:12:14.600 --> 0:12:17.440 Sunday will get up to near seventy right now forty 0:12:17.480 --> 0:12:23.920 two degrees in Central Park Markets, headlines and breaking news 0:12:24.040 --> 0:12:26.599 twenty four hours a day at Bloomberg dot Com, the 0:12:26.679 --> 0:12:30.240 Bloomberg Business Out and at Bloomberg Quick Take. She's a 0:12:30.240 --> 0:12:39.480 Bloomberg Business Flash, but I'm Karen Moscow. This update brought 0:12:39.480 --> 0:12:41.760 to you by me and why Melon's perishing learned by 0:12:41.800 --> 0:12:45.040 the world's most sophisticated wealth management and institutional firms are 0:12:45.040 --> 0:12:48.559 rely on perishing to help him improve profitability, create efficiency, 0:12:48.600 --> 0:12:52.680 attract talent, and manage risk at Pershing dot Com. While 0:12:52.720 --> 0:12:55.560 stocks in Europe are rising as China's pledged to ramp 0:12:55.600 --> 0:12:58.760 up stimulus lifts optimism and strong earnings continue to roll 0:12:58.840 --> 0:13:01.760 in while you are stock into futures are lower following 0:13:01.760 --> 0:13:04.880 earnings from Amazon dot Com and Apple. What technology shares 0:13:04.920 --> 0:13:08.000 really leading the way this morning? Amazon shares are down 0:13:08.160 --> 0:13:10.600 eight and a half percent this morning. Apple is down 0:13:10.679 --> 0:13:12.720 two and a half percent in the pre market. And 0:13:12.760 --> 0:13:15.000 we check the markets every fifteen minutes about the trading 0:13:15.080 --> 0:13:18.280 day on Bloomberg. So again, Nasdack Future is leading things lower, 0:13:18.280 --> 0:13:20.800 down a hundred twenty three points or about nine tenths 0:13:20.840 --> 0:13:23.000 of a percent. S and P futures are down twenty 0:13:23.040 --> 0:13:26.160 eight and now futures down one hundred sixteen decks. In 0:13:26.200 --> 0:13:29.080 Germany up one percent. The ten year treasury down fourteen 0:13:29.120 --> 0:13:32.040 thirty seconds, yield two point eight seven percent. Yield on 0:13:32.120 --> 0:13:34.640 a two year two point six eight percent. Nine max 0:13:34.679 --> 0:13:36.719 screwed oil is up one point one percent of a 0:13:36.760 --> 0:13:39.199 dollar nine, up a dollar nine at a hundred six 0:13:39.200 --> 0:13:41.800 dollars forty five cents of barrel comex schoold is that 0:13:41.880 --> 0:13:44.440 pointed at third percent or twenty five dollars eighty cents 0:13:44.480 --> 0:13:47.440 at nineteen seventeen an ounced the euro one point oh 0:13:47.480 --> 0:13:49.880 five six two against the dollar, British pound one point 0:13:49.880 --> 0:13:52.360 to five five seven and the end at one thirty 0:13:52.400 --> 0:13:55.520 point four two and bitcoins lower down one point seven 0:13:55.559 --> 0:13:58.599 percent at thirty nine thousand, two hundred dollars. That's a 0:13:58.600 --> 0:14:01.319 Bloomberg business flash. Now is Michael Barrow with more on 0:14:01.440 --> 0:14:04.400 what's going on around the world. Michael Karen, thank you 0:14:04.480 --> 0:14:07.679 very much. Russia found it targets from practically one end 0:14:07.720 --> 0:14:11.120 of Ukraine to the other, including Kiev. The bombardment of 0:14:11.160 --> 0:14:13.439 the city took place while the head of the United 0:14:13.559 --> 0:14:17.160 Nations was visiting Ukraine's capitol. Round one of the NFL 0:14:17.240 --> 0:14:19.480 draft is in the books. The first five picks where 0:14:19.520 --> 0:14:23.080 all defensive players. The Jaguars took Trayvon Walker with the 0:14:23.080 --> 0:14:26.880 top pick. The Jets at number four pick cornerback amand Gardner. 0:14:27.280 --> 0:14:31.360 The Giants at five took another edge rusher, Cavan Thibodeaux. 0:14:31.560 --> 0:14:33.440 By the way, the Steelers took the first quarterback and 0:14:33.520 --> 0:14:36.480 twenty of Pitts Kenny Pickett. In Maseball, the Yankees beat 0:14:36.520 --> 0:14:39.240 the Orioles ten five, The Red Sox Nationals lost in 0:14:39.280 --> 0:14:42.240 the NHL, The Islanders beat the Capitols five one, The 0:14:42.240 --> 0:14:45.360 Devil's Lost Bruins one. Global News twenty four hours a 0:14:45.440 --> 0:14:47.920 day on air and on Bloomberg Quicktake, powered by more 0:14:47.920 --> 0:14:50.120 in than twenties seven hundred journalist and analysts more than 0:14:50.120 --> 0:14:54.040 a hundred, twenty countries. Michael bar this is Bloomberg, Nathan Okay, Michael, 0:14:54.040 --> 0:14:56.040 thanks for coming up to six twenty on Wall Street 0:14:56.040 --> 0:14:59.080 Life from the Bloomberg Interactive Broker studios, This is Bloomberg. 0:14:59.080 --> 0:15:01.560 A daybreaking is car and mentioned it's tech that is 0:15:01.680 --> 0:15:04.880 leading the declines in the pre market this morning after 0:15:05.040 --> 0:15:10.960 earnings that disappointed analysts from Amazon and Alphabet. I'm sorry 0:15:10.960 --> 0:15:14.000 from Apple, not Alphabet. They reported earlier this week, didn't they. 0:15:14.160 --> 0:15:16.960 Alex Webb is back with us this morning Bloomberg twig 0:15:17.000 --> 0:15:21.040 Take correspondent tech columnist for Bloomberg Opinion to dive in 0:15:21.080 --> 0:15:23.920 a little bit more into these latest earnings. Alex. Great 0:15:23.960 --> 0:15:25.840 to have you back on with us. Let's start with 0:15:25.880 --> 0:15:29.480 Amazon simply because the shares are getting punished in the 0:15:29.720 --> 0:15:34.320 early more morning trading. UH seems as though a losing quarter. 0:15:34.920 --> 0:15:38.640 UH is not something anybody really expected from the biggest 0:15:38.880 --> 0:15:42.840 e commerce player in the world. Yeah, and it's also 0:15:42.880 --> 0:15:45.480 the scale of the of the problem that they were 0:15:45.520 --> 0:15:48.880 basically saying that they expanded rapidly during the lockdowns and 0:15:48.960 --> 0:15:52.520 not ensure they had the capacity to meet demand. That 0:15:52.640 --> 0:15:55.560 demand has perhaps inevitably now slackened. Then there's less than 0:15:55.560 --> 0:15:57.760 with a huge amount of capacity, which in turn entail 0:15:58.120 --> 0:16:00.640 fixed costs. When you got warehouses and in eployees, those 0:16:00.680 --> 0:16:03.560 things cost your money. And it is a change from 0:16:03.760 --> 0:16:06.160 the trend we've seen in the past where people had 0:16:06.160 --> 0:16:09.720 complained about Apple, sorry about Amazon operating at the loss 0:16:09.760 --> 0:16:12.840 and whether you know this is the kind of Amazon 0:16:12.920 --> 0:16:15.080 one point oh ten, fifteen years ago, will they ever 0:16:15.120 --> 0:16:17.120 make a profit? Then it became very clear that they 0:16:17.120 --> 0:16:19.920 could turn a profit quite easily if they just turn 0:16:20.000 --> 0:16:24.680 a few spiggots, you know, cramp down on on costs quickly. 0:16:25.320 --> 0:16:28.760 Now they have expanded beyond that, and their cost controls 0:16:28.800 --> 0:16:30.520 seemed to have slightly gone out the window, and that's 0:16:30.560 --> 0:16:34.120 causing concern. And I guess there's got to be concerned 0:16:34.160 --> 0:16:37.320 as well with not just the cost picture, but the 0:16:37.400 --> 0:16:42.800 macro headwinds facing Amazon, with inflation and potentially the cost 0:16:43.000 --> 0:16:45.960 rising for consumers who might want to buy stuff on Amazon, 0:16:46.240 --> 0:16:50.720 potentially eating into their margins. Exactly. Yeah, their customers are 0:16:50.800 --> 0:16:53.080 perhaps getting a little bit more cost conscious, while at 0:16:53.120 --> 0:16:56.440 the same time Amazon's costs are increasing. How did they 0:16:56.440 --> 0:16:58.360 get things to your front door? Sure they might have 0:16:58.400 --> 0:17:01.040 some electric vehicles, but for the most part it's stuff 0:17:01.080 --> 0:17:03.080 that requires fuel, and fuel is getting a lot more 0:17:03.120 --> 0:17:06.359 expensive too, so that having to impose surcharges. So, just 0:17:06.520 --> 0:17:09.320 as you know, it's the classic inflation story. Just as 0:17:09.359 --> 0:17:13.120 consumers are being more conscious about spending money, Amazon Zone 0:17:13.119 --> 0:17:17.000 costs are also increasing. And I guess that's not as 0:17:17.080 --> 0:17:19.760 much of an issue for Apple, or at least that's 0:17:19.800 --> 0:17:23.000 not what the focus was for CEO Tim Cook. On 0:17:23.119 --> 0:17:26.720 the call last night, He's talking a lot about supply 0:17:26.880 --> 0:17:31.320 chain constraints, which also gets to what is traditionally one 0:17:31.320 --> 0:17:34.360 of Apple's key strengths, the ability to manage the supply chain. 0:17:34.400 --> 0:17:37.240 In fact, the supply chain that Tim Cook largely built 0:17:38.280 --> 0:17:42.120 that is now hurting them because of the lockdowns in China, 0:17:42.160 --> 0:17:45.720 which means they can't get all of the semiconductor or 0:17:45.760 --> 0:17:48.560 another electronics that they need to go into their devices. 0:17:48.560 --> 0:17:51.280 And that's going to have afford a billion dollar impact 0:17:51.480 --> 0:17:56.639 on on revenue um. It's also significant given the timing 0:17:56.680 --> 0:18:01.119 because over recent quarters we've had a few times the 0:18:01.440 --> 0:18:04.320 sense that Apple hasn't got enough supply to meet them 0:18:04.440 --> 0:18:07.679 to meet demand. But investors tend to not get too 0:18:07.720 --> 0:18:09.880 concern because they know that demand is going to come 0:18:10.240 --> 0:18:14.080 at a later stage right now, as we get closer 0:18:14.119 --> 0:18:19.200 to the new lineup of iPhones in the autumn, if 0:18:19.240 --> 0:18:21.960 it's another quarter until people are able to get everything 0:18:22.000 --> 0:18:24.480 they want, then they will push it a further quarter 0:18:24.560 --> 0:18:27.240 still to wait for those iPhones. So it does have 0:18:27.320 --> 0:18:31.480 an impact on earnings to that point. Alex I was 0:18:31.560 --> 0:18:35.000 talking with Gene Munster from Louke Venture's Last Hour. He 0:18:35.200 --> 0:18:39.000 says that Apple fans have shown in the past that 0:18:39.080 --> 0:18:43.040 they're willing to wait. Are they willing to wait that 0:18:43.119 --> 0:18:48.480 long if supply chain constraints push new products back six 0:18:48.840 --> 0:18:51.920 nine months down the road in our last thirty seconds here, well, 0:18:51.960 --> 0:18:54.240 I think it isn't necessarily that they're willing to wait. 0:18:54.359 --> 0:18:56.800 Is what it does the replacement cycle that we've gone seen. 0:18:56.840 --> 0:18:59.560 The replacement cycle, the pacer which people will replace their 0:18:59.560 --> 0:19:03.400 iPhone extend from two years to three years and if 0:19:03.440 --> 0:19:06.440 there are other reasons that push it even further, then 0:19:06.440 --> 0:19:08.399 maybe if you'll start realizing they don't need to replace 0:19:08.440 --> 0:19:10.760 this regularly and it sends to four years, Apple wants 0:19:10.760 --> 0:19:13.000 you to be updating your phone, replacing your phone far 0:19:13.040 --> 0:19:16.679 more regularly than that. Thanks Alex, Lots of A's in 0:19:16.720 --> 0:19:20.320 the Feng picture. Alex web with us this morning, Bloomberg 0:19:20.400 --> 0:19:23.960 Quick Take correspondent Tech Calmness for Bloomberg Opinion, talking Apple 0:19:24.440 --> 0:19:27.680 and Amazon this morning and looking at the shares. Amazon 0:19:27.800 --> 0:19:30.360 is down eight and a half percent in the pre market, 0:19:30.359 --> 0:19:34.000 while Apple is lower by two and two thirds per cent, 0:19:34.359 --> 0:19:37.320 helping to drag the broader index is lower this morning, 0:19:37.320 --> 0:19:40.720 with SMP futures down thirty two points, DAL futures down 0:19:40.720 --> 0:19:43.399 a hundred thirty eight. Nasdaq Future is also lower by 0:19:43.440 --> 0:19:45.359 a hundred thirty eight points. That is a drop of 0:19:45.440 --> 0:19:48.600 one percent for the tech heavy Nasdaq futures ten. Your 0:19:48.640 --> 0:19:52.400 treasury down thirteen thirty seconds, the yield two point eight 0:19:52.480 --> 0:19:55.840 seven percent. Just ahead, we hear from Apple CEO on 0:19:55.880 --> 0:19:58.159 the tech out look and where's Elon Musk getting the 0:19:58.160 --> 0:20:01.080 money to buy Twitter? Five things you need to notice 0:20:01.080 --> 0:20:08.520 start your day next on Bloomberg Daybreak. Bloomberg Daybreak is 0:20:08.520 --> 0:20:11.560 brought to you by ancient accountants and advisors. Challenging times 0:20:11.560 --> 0:20:15.080 call for proactive advisors who helped minimize taxes, increased cash flow, 0:20:15.320 --> 0:20:17.920 and create opportunities for the future of your business. Visit 0:20:17.960 --> 0:20:25.399 Ancient dot Com broadcasting live from the Bloomberg Interactive Broker 0:20:25.520 --> 0:20:28.920 Studio in New York. Bloomberg E Living Freedom to Washington, 0:20:29.000 --> 0:20:33.120 d C, Bloomberg to Boston, Bloomberg one O six one 0:20:33.200 --> 0:20:36.680 to San Francisco, Bloomberg N sixteen to the country, Sirius 0:20:36.800 --> 0:20:39.280 XM to the one nine team, and around the globe 0:20:39.359 --> 0:20:42.960 the Bloomberg Business app in Bloomberg Radio dot com. This 0:20:43.280 --> 0:20:51.800 is Bloomberg Daybreak, six thirty on Wall Street. Good morning, 0:20:51.840 --> 0:20:54.760 I'm Nathan Hagar and I'm Karen Moscow, and we're just 0:20:54.880 --> 0:20:57.560 about three hours away from the open of US trading. 0:20:57.600 --> 0:20:59.560 Time for the five things you need to notice start 0:20:59.600 --> 0:21:01.920 your day. Brought to you by I v k R 0:21:02.040 --> 0:21:05.160 Investment Advisors switched to interact your brokers for lowest cost 0:21:05.200 --> 0:21:08.960 global trading and turnkey custody solutions, no ticket charges and 0:21:09.000 --> 0:21:12.000 no conflicts of your interests at ibkr dot com. Slash 0:21:12.160 --> 0:21:15.200 R I A up first. Apple shares down almost two 0:21:15.200 --> 0:21:18.359 percent in early training despite posting record earnings and a 0:21:18.400 --> 0:21:21.040 conference call yesterday, the company said it could lose up 0:21:21.040 --> 0:21:23.639 to eight billion dollars in the current quarter do to 0:21:23.720 --> 0:21:26.880 supply constraints, and shares of Amazon are also lowered this morning, 0:21:26.920 --> 0:21:29.920 Karen by a half percent after announcing it lost money 0:21:29.960 --> 0:21:32.879 in the first quarter. Bloomberg Intelligence senior e commerce and 0:21:32.960 --> 0:21:36.200 retail analyst Punum Goyle says it's due to rising costs. 0:21:36.400 --> 0:21:39.480 Aws continues Let's pace, so that's great to hear on 0:21:39.560 --> 0:21:43.439 the online business clearly in line with expectations. But the 0:21:43.480 --> 0:21:46.560 margin week you could say that that's surprising, but it's 0:21:46.560 --> 0:21:49.000 really not. I mean, from everything that we've been seeing 0:21:49.119 --> 0:21:52.639 all year, the supply chain crunch is only getting worse, 0:21:52.680 --> 0:21:55.400 it's not getting better. So they are getting hit from 0:21:55.480 --> 0:21:59.240 higher costs across the board. Boomberg Intelligence analysts Punam Goyle 0:21:59.280 --> 0:22:02.040 and we have earning from Big Oil crossing the Bloomberg terminal. 0:22:02.200 --> 0:22:05.600 X On Mobile and Chevron both missed estimates well. Turning 0:22:05.600 --> 0:22:08.160 to Twitter now, Nathan, we're finding on more on how 0:22:08.160 --> 0:22:11.200 Elon Musk is financing his takeover. They get the latest 0:22:11.240 --> 0:22:13.800 line from Bloomberg's gonna a young good morning Radio, Good 0:22:13.840 --> 0:22:17.160 Morning Karen. A filing shows Elon Musk offloaded about four 0:22:17.240 --> 0:22:20.320 billion dollars worth of Tesla stock to cover the twenty 0:22:20.400 --> 0:22:23.399 one billion dollar equity portion of his deal to buy Twitter. 0:22:23.920 --> 0:22:26.520 After those filings were made public, he tweeted no further 0:22:26.600 --> 0:22:30.320 Tesla sales were planned. Bloomberg sources say before the deal 0:22:30.400 --> 0:22:33.360 was announced, Musk floated the idea of cutting jobs and 0:22:33.440 --> 0:22:36.399 costs set Twitter you Know. On calls with bankers. He 0:22:36.680 --> 0:22:40.639