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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Good morning.

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Speaker 1: I'm John Tucker and I'm Karen Moscow. Here are the

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Speaker 1: stories we're following today.

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Speaker 2: Karen, let's begin with mixed results from high tech. Shares

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Speaker 2: of Apple right now down one point one percent in

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Speaker 2: early trading. Apple says total sales in the December period

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Speaker 2: are going to rise by a percentage in a low

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Speaker 2: to middle single digits. Analysts have been projecting a seven

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Speaker 2: percent increase. Apple CEO Tim Cook says he was happy

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Speaker 2: with the recent quarter.

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Speaker 3: iPhone grew in every geographic segment, marking a new September

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Speaker 3: quarter revenue record for the category, and services set an

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Speaker 3: all time revenue record up twelve percent year over year.

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Speaker 3: We also set September quarter segment revenue records in the Americas, Europe,

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Speaker 3: and the rest of Asia Pacific, as well as in

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Speaker 3: a large number of countries.

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Speaker 2: Apples CEO Tim Cook also wing on the stock this warning.

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Speaker 2: The company posted a decline in China revenue last quarter,

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Speaker 2: falling short of estimates.

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Speaker 1: Well on the flip side, John, Amazon shares are at

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Speaker 1: more than five and a half percent. Total third quarter

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Speaker 1: revenue increased eleven percent to almost one hundred and fifty

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Speaker 1: nine billion dollars. Operating profit was seventeen point four billion,

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Speaker 1: demolishing the average estimate by two point of two point

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Speaker 1: seven billion dollars or by two point seven The company

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Speaker 1: has been spending heavily on the new data centers required

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Speaker 1: for the boom and demand for artificial intelligence services. CEO

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Speaker 1: Andy Jasse says investors will see that spending payoff in

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Speaker 1: the long run.

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Speaker 4: It is a really unusually large, maybe once in a

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Speaker 4: lifetime type of opportunity, and I think our customers, the business,

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Speaker 4: and our shareholders will feel good about this long term

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Speaker 4: that we're aggressively pursuing it.

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Speaker 1: And let's say, CEO Andy Jasse's years long push to

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Speaker 1: cut costs and streamline Amazon's logistics operation have paid off.

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Speaker 2: And here's an Intel They're of more than five percent

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Speaker 2: pre market. The chipmaker forecast fourth quarter revenue above estimates,

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Speaker 2: so the sparking optimism the company can win back some

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Speaker 2: of its lost market share. Intel, once the industry leader

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Speaker 2: in computer processors, is now working to preserve cash to

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Speaker 2: fund a turnaround plan. And we spoke with the Intel

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Speaker 2: CEO Pat Gelsinger.

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Speaker 5: We've taken these steps this quarter and restructuring and getting

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Speaker 5: our costs where they need to be.

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Speaker 6: Here we have the capacity to go on the journey.

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Speaker 2: In the prior quarter, the CEO Pat Gelsinger cut jobs,

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Speaker 2: slash spatting, and suspended investor payouts.

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Speaker 1: Well, Johnny. Earnings continue this morning with Big Oil on tap,

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Speaker 1: and today we hear from Exon Mobile. We get a

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Speaker 1: preview from Bloomberg's town.

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Speaker 6: Busby Exon Mobile. Investors will likely focus on the company's

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Speaker 6: ongoing production growth, especially in the Permian basin of West

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Speaker 6: Texas and New Mexico and in Guyana. Also in focus

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Speaker 6: recent cost cutting initiatives that are expected to give profitability

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Speaker 6: a boost despite slightly lower crewde prices. Bloomberg consensus calls

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Speaker 6: for revenue of eighty seven point two billion dollars and

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Speaker 6: adjusted earnings per share of a dollar eighty seven. Tom

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Speaker 6: Busby Bloomberg Radio.

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Speaker 2: Thanks Tom, and speaking of oil crude oil on the

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Speaker 2: rise this morning. This follows a report that Iran could

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Speaker 2: be preparing an attack on israel axios setting Two Israeli

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Speaker 2: sources say Tearan is planning a strike through militious that

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Speaker 2: it backs in Iraq and as we check Brant the

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Speaker 2: International benchmark up two point six percent. Seventy four is

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Speaker 2: seventy five of barrel, nine mixed crews seventy one to

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Speaker 2: twenty two of barrel. That's up a two point eight percent.

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Speaker 1: Well, John Boeing shares they're also on the rise. They're

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Speaker 1: up two point three percent. The planemaker and union leaders

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Speaker 1: representing thirty three thousand striking workers reached a tentative agreement

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Speaker 1: and a lengthy labor dispute that's been crippling the company's

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Speaker 1: commercial airplane manufacturing. The agreement would boost wages by thirty

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Speaker 1: eight percent over four years and give workers a twelve

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Speaker 1: thousand dollars signing bonus if approved. The union says members

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Speaker 1: will vote Monday on the new contract offer.

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Speaker 2: Speaking of jobs, Karen, this morning, we're going to get

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Speaker 2: the latest reading of the labor market with the October

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Speaker 2: jobs report. Let's get a preview right now from Bloomberg's

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Speaker 2: Michael McKee.

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Speaker 7: The payroll's number is something of a black hole for October.

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Speaker 7: The Boeing strike will take some workers out of the numbers,

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Speaker 7: as will Hurricanes Helene and Milton, but nobody knows how

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Speaker 7: many will fall out. Bloomberg Economics estimates it could be

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Speaker 7: as many as one hundred fifty thousand, which would produce

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Speaker 7: a negative payroll print for the first time since the pandemic.

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Speaker 7: At the other end of the spectrum, Steve Vershudo of

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Speaker 7: MIZZUO says one hundred and eighty thousand jobs, just over

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Speaker 7: the average of the past six months. ADP on Wednesday

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Speaker 7: reported finding two hundred and thirty three thousand new jobs.

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Speaker 7: The mystery will be answered at eight thirty Eastern time.

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Speaker 7: Michael McKee, Bloomberg Radio.

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Speaker 1: Orry, Michael, thank you now to the final days of

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Speaker 1: the twenty twenty four presidential election campaign. Vice President Kamala

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Speaker 1: Harris is aiming to shore up votes across crucial swing states,

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Speaker 1: with most polls indicating the race is a toss up. Yesterday,

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Speaker 1: in Nevada, Harris seized on Donald Trump's remark that he'd

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Speaker 1: protect women if elected, whether they like it or not.

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Speaker 8: It is not the first time he has told us

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Speaker 8: he does not believe women should have authority or agency

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Speaker 8: over their own bodies.

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Speaker 1: Kamala Harris further called Trump's comments about women very offensive.

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Speaker 1: The Vice president will rally tonight in Milwaukee, shall be

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Speaker 1: joined by several musical guests, including rapper Cardi b. It

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Speaker 1: comes after Harris secure the endorsement of basketball star Lebron

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Speaker 1: James yesterday.

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Speaker 2: Donald Trump also heads to Wisconsin tonight, his campaigns touting

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Speaker 2: a celebrity endorsement of its own. The YouTube star Jake

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Speaker 2: pauls it looks to drum up support from young voters.

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Speaker 2: The former president traveled across the Southwest yesterday attacking Harris

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Speaker 2: while encouraging supporters to vote on Tuesday.

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Speaker 9: You have to stand up and you have to tell

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Speaker 9: Kamala that you've had enough.

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Speaker 7: You can't take it anymore. She's horrible.

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Speaker 2: But despite those comments, Donald Trump's still sowing doubt in

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Speaker 2: the election results should he lose. He insists he's poised

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Speaker 2: for a runaway victory barring alleged voter fraud. And it

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Speaker 2: comes as Trump announced he's suing CBS Broadcasting, alleging the

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Speaker 2: network engaged in election interference when it aired different versions

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Speaker 2: of a sixty minutes interview with the Vice President Harris.

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Speaker 2: A network spokesperson says the lawsuit lacks merit.

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Speaker 1: Well John joined us for complete coverage of election results

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Speaker 1: Tuesday night. It All cakes off at five pm Eastern

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Speaker 1: with a special two hour edition of balance of power,

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Speaker 1: following by Cost to Coast to Bloomberg Team coverage at

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Speaker 1: seven pm. Get live election results and analysis with context

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Speaker 1: Tuesday night on Bloomberg Radio, Television and the Bloomberg Podcast

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Speaker 1: YouTube channel Time, and offer look at some of the

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Speaker 1: other stories making news in New York and around the world.

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Speaker 1: And for that we're joined by Bloomberg's Michael Barr.

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Speaker 5: Michael, Good morning, Good morning Karen. Words of warning for

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Speaker 5: North Korean troops training to fight for Russia inside Ukraine

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Speaker 5: the US as those troops will be treated the same

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Speaker 5: as Russians by the Ukrainian military. Secretary of State Antony

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Speaker 5: Blincoln says around eight thousand North Korean troops and now

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Speaker 5: station in the Kursk region of Russia.

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Speaker 10: Russia has been training DPRK soldiers in artillery ua these

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Speaker 10: basic infantry operations, including trench clearing, indicating that they fully

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Speaker 10: intend to use these forces in frontline operations.

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Speaker 5: Secretary Blincoln says they expect Russia to begin mobilizing these

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Speaker 5: troops in the coming days. Crews are searching for bodies

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Speaker 5: and stranded cars and sodden buildings as residents salvage what

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Speaker 5: they can from ruined homes following monstrous flash floods in

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Speaker 5: Spain that claimed at least one hundred and fifty eight lives.

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Speaker 5: The death toll could rise more as search efforts continue.

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Speaker 5: An unknown number remains missing. Since the twenty twenty election,

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Speaker 5: the Cybersecurity Infrastructure Security Agency has been doing everything possible

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Speaker 5: to reassure voters and correct any disinformation about the integrity

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Speaker 5: of the American vote. Accusations of tampering and ballot dumping

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Speaker 5: have made polling workers feel unsafe. CISA director Jen Easterly

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Speaker 5: says seeing election workers subjected to threats, harassment, and in

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Speaker 5: some cases forced to work behind bulletproof glass is very

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Speaker 5: discouraging to her.

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Speaker 11: They're not faceless bureaucrats. There are friends, there are neighbors.

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Speaker 11: We see them in the community every single day, and

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Speaker 11: they're not doing it for pay or for glory. They're

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Speaker 11: doing it because they believe in our democracy and they

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Speaker 11: deserve respect.

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Speaker 5: Meanwhile, police in Portland, Oregon and Vancouver, Washington, are still

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Speaker 5: looking for the suspect who set fires to voting drop boxes.

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Speaker 5: A jury has been seated to hear the subway chocol

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Speaker 5: case against Daniel Penny, with opening statements scheduled for today.

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Speaker 5: The jury is compromised of seven women and five men,

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Speaker 5: including four people of color. The defense use their challenges

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Speaker 5: to strike at least ten people of color. Daniel Penny,

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Speaker 5: a white marine veteran, pleads not guilty demandslaughter and criminally

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Speaker 5: negligent homicide. He put a black man acting erratically in

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Speaker 5: a New York City subway car into a fatal choke

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Speaker 5: hold last year. Witnesses say the man, Jordan Neely, had

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Speaker 5: been shouting and demanding money. Global news twenty four hours

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Speaker 5: a day and whenever you want it with the Bloomberg News. Now,

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Speaker 5: I'm Michael Barr. This is Bloomberg Karen.

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Speaker 1: Sorry, Michael Barr, thank you. It is time now for

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Speaker 1: the Bloomberg Sports Update, brought to you by Tri State Outye.

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Speaker 1: Here's John Stamshower. John, good morning, Good morning Karen.

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Speaker 12: Throughout October course, the New York baseball teams provided almost

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Speaker 12: daily excitement of both their seasons ended with losses to

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Speaker 12: the Dodgers. The NFL teams in New York not so good,

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Speaker 12: both with two and six records begin Week nine, but

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Speaker 12: on the final night of the month and met Live Stadium,

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Speaker 12: the Jets got a much needed win and in their

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Speaker 12: five game loser, three being in the Texans twenty one

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Speaker 12: to thirteen, with Aaron Rodgers throwing three second half touchdown passes.

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Speaker 12: The first two went to Garrett Wilson and both catches

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Speaker 12: were made with one hand. The second one and especially

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Speaker 12: highlight reel grab that came out of third and nineteen,

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Speaker 12: was originally ruled out of bounds with James Don replay.

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Speaker 12: Here was Wilson after the game.

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Speaker 9: First one is just a drag route and Aaron, you know,

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Speaker 9: comes to me late in progression and I got to

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Speaker 9: make a play and luckily it blew wide open. After

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Speaker 9: I caught the ball, Let's go to score a touchdown,

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Speaker 9: you know, the second one, third down, and he trusted

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Speaker 9: me to go and make a play again rights, he

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Speaker 9: comes to me, it's it's kind of a down that

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Speaker 9: no one expects to convert, and you know that can't

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Speaker 9: be our mindset. We're the only ones I thought we

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Speaker 9: were gonna convert.

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Speaker 12: There also the first Jets touchdown for Devonte Adams. He

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Speaker 12: came out of concussion protocol to score the final TV

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Speaker 12: first win for the new Jets coach Jeff Obrick. The

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Speaker 12: Houston qb CJ Stroud, just eleven of thirty two and

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Speaker 12: six Giants are back in met Life on Sunday to

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Speaker 12: play the six and two Washington Commanders big game of

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Speaker 12: the NFC North six and one Detroit at five and

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Speaker 12: two Green Bay. The Packers may have their QB Jordan

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Speaker 12: Love despite leaving last week's game with injured groen, he

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Speaker 12: was back at practice yesterday and Baltimore Lamar Jackson has

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Speaker 12: not practiced yet this week. Said to be nurse I

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Speaker 12: mean back in knee injuries. As for those Dodgers, they'll

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Speaker 12: be honored today in La at parade a ceremony at

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Speaker 12: Dodger Stadium. Freddie Freeman figures to get the biggest ovation,

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Speaker 12: had one of the greatest World Series ever to spite

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Speaker 12: an ankle injury, and now ESPN reporting Freeman's also playing

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Speaker 12: with a broken rib. World Series ratings on Fox HIA

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Speaker 12: since twenty seventeen averaging almost sixteen million viewers. Last year's

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Speaker 12: World Series drew an average of nine million. John Stashedward

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Speaker 12: Bloomberg Sports, Karen.

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Speaker 4: And John.

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Speaker 13: Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 13: and around the world on Bloomberg dot Com and the

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Speaker 13: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 2: And I'm John Tucker in the Bloomberg Interactive Brokers studios

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Speaker 2: this morning, where it is coming up on five thirteen

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Speaker 2: on Wall Street, Apple and Amazon delivering earnings after the

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Speaker 2: close up regular trading and pre Marcus shares of Apple

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Speaker 2: they are down over one percent. Amazon shares are up

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Speaker 2: over five percent. Let's break down the results now with

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Speaker 2: Bloomberg's critic. Pretty good morning, thanks for being with us.

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Speaker 2: With Apple sales, China regulatory concerns, where do you want

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Speaker 2: to start?

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Speaker 8: Yeah, let's start with the China piece, because that seems

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Speaker 8: to be the biggest takeaway from the Apple story. Yes,

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Speaker 8: iPhone revenue grew in every single region, and that's kind

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Speaker 8: of the top line from Tim Cook's comments post earnings,

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Speaker 8: But it's that China story that really matters here simply

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Speaker 8: because that's their growth market. That's where Apple's trying to

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Speaker 8: not only secure some of their supply chains, which they

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Speaker 8: have partially moved to India, by the way, but that's

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Speaker 8: also where they're trying to access their consumer at a

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Speaker 8: time when they're also doing a little bit of the

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Speaker 8: catch up trade on AI. Those both of those concepts

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Speaker 8: are kind of married in what happened about six weeks,

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Speaker 8: well almost two months ago now I'm thinking about it.

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Speaker 8: When it came to the latest iPhone launch, I think

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Speaker 8: it was early September, September ninth, if memory serves me right,

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Speaker 8: when just twenty four hours later, Huawei launched their own

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Speaker 8: kind of latest smartphone as well, And I think that

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Speaker 8: speaks to this idea that the market share that Apple

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Speaker 8: was trying to gain in China has kind of been

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Speaker 8: cannibalized by the Whahwei rival and the Wahwei product, and

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Speaker 8: that's really what's eating into these margins. Nevertheless, it looks

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Speaker 8: like they are still selling their products. People are still

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Speaker 8: buying it, and for that reason, you're not seeing Apple

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Speaker 8: shares down this morning as much as perhaps expected.

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Speaker 2: The Apple intelligence features is that captured in the September quarter.

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Speaker 7: It's not quite yet.

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Speaker 8: And remember this is one of the things that has

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Speaker 8: been a little bit of a handicap for the stock,

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Speaker 8: or an overhang for the stock, and that when you're

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Speaker 8: comparing it to some of the other big tech names Microsoft, Amazon,

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Speaker 8: Alphabet even though they are very different businesses from Apple,

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Speaker 8: they are still trading higher on this kind of AI trade.

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Speaker 8: Apple has been the notable laggard simply because they haven't

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Speaker 8: been able to really kind of capitalize on that technology.

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Speaker 8: And they've only just now released that AI technology in

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Speaker 8: some of their latest updates for the iPhone. So it's

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Speaker 8: not going to show up in this latest quarter, but

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Speaker 8: it might in the next view.

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Speaker 2: Apple Services, you got to explain to me what that

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Speaker 2: is and how's it doing that end of the business.

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Speaker 8: Oh, I love this, so Apple Services personal obsession. And

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Speaker 8: the reason I say this, you've tapped into a rich area,

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Speaker 8: John Tucker. I say this because this was really crucial

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Speaker 8: data and crucial revenue for Apple during the pandemic. And

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Speaker 8: Apple Services is basically every time you go into the

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Speaker 8: Apple Store, you get your screen fixed, you get a

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Speaker 8: Apple update, you need some help from kind of the

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Speaker 8: genius bar that among several of the other kind of

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Speaker 8: app functions comes under the umbrella of Apple Services and

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Speaker 8: makes up about a third of their revenue. And during COVID,

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Speaker 8: that's the part that really tainked because nobody was going

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Speaker 8: into Apple. So from a macro signal, which is kind

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Speaker 8: of how I like to look at it, it's very

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Speaker 8: crucial for Apple's kind of mobility story because Apple, at

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Speaker 8: the end of the day, it's a hardware company, but

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Speaker 8: it wants to be more than that.

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Speaker 2: Okay, let's move on to Amazon. Now, of six percent

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Speaker 2: pre market I seem to be several pillars. You have

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Speaker 2: e commerce, advertising, cloud services. How did they deliver? Get

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Speaker 2: about a little bit more than.

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Speaker 8: A minute, let's talk about AWS. I think that's the

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Speaker 8: takeaway here. Remember I on Weber Amazon Web Services. This

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Speaker 8: is the number two player in the cloud space, second

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Speaker 8: to Microsoft's Asia. The top line you need to know,

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Speaker 8: and one number is thirty eight percent. That's the margin

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Speaker 8: of revenue that Amazon is making on their cloud unit,

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Speaker 8: and it is the highest record margin they've made going

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Speaker 8: all the way back to Data in twenty fourteen. By comparison,

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Speaker 8: Alphabet's cloud unit is trying to keep up. They're trying

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Speaker 8: to break into this and their margin is only seventeen percent.

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Speaker 8: So that's where Amazon is really wowing investors.

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Speaker 2: And they cut costs. It's not just cost cutting, it's

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Speaker 2: kind of an effort I guess, to reallocate resources real quick.

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Speaker 2: How did that work out?

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Speaker 8: They're still in the process where they have a logistics

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Speaker 8: unit that hasn't been doing as well, so they're in

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Speaker 8: the works of it, but the e commerce results coming

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Speaker 8: in stronger than expected as well.

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