Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Good morning.
Speaker 1: I'm John Tucker and I'm Karen Moscow. Here are the
Speaker 1: stories we're following today.
Speaker 2: Karen, let's begin with mixed results from high tech. Shares
Speaker 2: of Apple right now down one point one percent in
Speaker 2: early trading. Apple says total sales in the December period
Speaker 2: are going to rise by a percentage in a low
Speaker 2: to middle single digits. Analysts have been projecting a seven
Speaker 2: percent increase. Apple CEO Tim Cook says he was happy
Speaker 2: with the recent quarter.
Speaker 3: iPhone grew in every geographic segment, marking a new September
Speaker 3: quarter revenue record for the category, and services set an
Speaker 3: all time revenue record up twelve percent year over year.
Speaker 3: We also set September quarter segment revenue records in the Americas, Europe,
Speaker 3: and the rest of Asia Pacific, as well as in
Speaker 3: a large number of countries.
Speaker 2: Apples CEO Tim Cook also wing on the stock this warning.
Speaker 2: The company posted a decline in China revenue last quarter,
Speaker 2: falling short of estimates.
Speaker 1: Well on the flip side, John, Amazon shares are at
Speaker 1: more than five and a half percent. Total third quarter
Speaker 1: revenue increased eleven percent to almost one hundred and fifty
Speaker 1: nine billion dollars. Operating profit was seventeen point four billion,
Speaker 1: demolishing the average estimate by two point of two point
Speaker 1: seven billion dollars or by two point seven The company
Speaker 1: has been spending heavily on the new data centers required
Speaker 1: for the boom and demand for artificial intelligence services. CEO
Speaker 1: Andy Jasse says investors will see that spending payoff in
Speaker 1: the long run.
Speaker 4: It is a really unusually large, maybe once in a
Speaker 4: lifetime type of opportunity, and I think our customers, the business,
Speaker 4: and our shareholders will feel good about this long term
Speaker 4: that we're aggressively pursuing it.
Speaker 1: And let's say, CEO Andy Jasse's years long push to
Speaker 1: cut costs and streamline Amazon's logistics operation have paid off.
Speaker 2: And here's an Intel They're of more than five percent
Speaker 2: pre market. The chipmaker forecast fourth quarter revenue above estimates,
Speaker 2: so the sparking optimism the company can win back some
Speaker 2: of its lost market share. Intel, once the industry leader
Speaker 2: in computer processors, is now working to preserve cash to
Speaker 2: fund a turnaround plan. And we spoke with the Intel
Speaker 2: CEO Pat Gelsinger.
Speaker 5: We've taken these steps this quarter and restructuring and getting
Speaker 5: our costs where they need to be.
Speaker 6: Here we have the capacity to go on the journey.
Speaker 2: In the prior quarter, the CEO Pat Gelsinger cut jobs,
Speaker 2: slash spatting, and suspended investor payouts.
Speaker 1: Well, Johnny. Earnings continue this morning with Big Oil on tap,
Speaker 1: and today we hear from Exon Mobile. We get a
Speaker 1: preview from Bloomberg's town.
Speaker 6: Busby Exon Mobile. Investors will likely focus on the company's
Speaker 6: ongoing production growth, especially in the Permian basin of West
Speaker 6: Texas and New Mexico and in Guyana. Also in focus
Speaker 6: recent cost cutting initiatives that are expected to give profitability
Speaker 6: a boost despite slightly lower crewde prices. Bloomberg consensus calls
Speaker 6: for revenue of eighty seven point two billion dollars and
Speaker 6: adjusted earnings per share of a dollar eighty seven. Tom
Speaker 6: Busby Bloomberg Radio.
Speaker 2: Thanks Tom, and speaking of oil crude oil on the
Speaker 2: rise this morning. This follows a report that Iran could
Speaker 2: be preparing an attack on israel axios setting Two Israeli
Speaker 2: sources say Tearan is planning a strike through militious that
Speaker 2: it backs in Iraq and as we check Brant the
Speaker 2: International benchmark up two point six percent. Seventy four is
Speaker 2: seventy five of barrel, nine mixed crews seventy one to
Speaker 2: twenty two of barrel. That's up a two point eight percent.
Speaker 1: Well, John Boeing shares they're also on the rise. They're
Speaker 1: up two point three percent. The planemaker and union leaders
Speaker 1: representing thirty three thousand striking workers reached a tentative agreement
Speaker 1: and a lengthy labor dispute that's been crippling the company's
Speaker 1: commercial airplane manufacturing. The agreement would boost wages by thirty
Speaker 1: eight percent over four years and give workers a twelve
Speaker 1: thousand dollars signing bonus if approved. The union says members
Speaker 1: will vote Monday on the new contract offer.
Speaker 2: Speaking of jobs, Karen, this morning, we're going to get
Speaker 2: the latest reading of the labor market with the October
Speaker 2: jobs report. Let's get a preview right now from Bloomberg's
Speaker 2: Michael McKee.
Speaker 7: The payroll's number is something of a black hole for October.
Speaker 7: The Boeing strike will take some workers out of the numbers,
Speaker 7: as will Hurricanes Helene and Milton, but nobody knows how
Speaker 7: many will fall out. Bloomberg Economics estimates it could be
Speaker 7: as many as one hundred fifty thousand, which would produce
Speaker 7: a negative payroll print for the first time since the pandemic.
Speaker 7: At the other end of the spectrum, Steve Vershudo of
Speaker 7: MIZZUO says one hundred and eighty thousand jobs, just over
Speaker 7: the average of the past six months. ADP on Wednesday
Speaker 7: reported finding two hundred and thirty three thousand new jobs.
Speaker 7: The mystery will be answered at eight thirty Eastern time.
Speaker 7: Michael McKee, Bloomberg Radio.
Speaker 1: Orry, Michael, thank you now to the final days of
Speaker 1: the twenty twenty four presidential election campaign. Vice President Kamala
Speaker 1: Harris is aiming to shore up votes across crucial swing states,
Speaker 1: with most polls indicating the race is a toss up. Yesterday,
Speaker 1: in Nevada, Harris seized on Donald Trump's remark that he'd
Speaker 1: protect women if elected, whether they like it or not.
Speaker 8: It is not the first time he has told us
Speaker 8: he does not believe women should have authority or agency
Speaker 8: over their own bodies.
Speaker 1: Kamala Harris further called Trump's comments about women very offensive.
Speaker 1: The Vice president will rally tonight in Milwaukee, shall be
Speaker 1: joined by several musical guests, including rapper Cardi b. It
Speaker 1: comes after Harris secure the endorsement of basketball star Lebron
Speaker 1: James yesterday.
Speaker 2: Donald Trump also heads to Wisconsin tonight, his campaigns touting
Speaker 2: a celebrity endorsement of its own. The YouTube star Jake
Speaker 2: pauls it looks to drum up support from young voters.
Speaker 2: The former president traveled across the Southwest yesterday attacking Harris
Speaker 2: while encouraging supporters to vote on Tuesday.
Speaker 9: You have to stand up and you have to tell
Speaker 9: Kamala that you've had enough.
Speaker 7: You can't take it anymore. She's horrible.
Speaker 2: But despite those comments, Donald Trump's still sowing doubt in
Speaker 2: the election results should he lose. He insists he's poised
Speaker 2: for a runaway victory barring alleged voter fraud. And it
Speaker 2: comes as Trump announced he's suing CBS Broadcasting, alleging the
Speaker 2: network engaged in election interference when it aired different versions
Speaker 2: of a sixty minutes interview with the Vice President Harris.
Speaker 2: A network spokesperson says the lawsuit lacks merit.
Speaker 1: Well John joined us for complete coverage of election results
Speaker 1: Tuesday night. It All cakes off at five pm Eastern
Speaker 1: with a special two hour edition of balance of power,
Speaker 1: following by Cost to Coast to Bloomberg Team coverage at
Speaker 1: seven pm. Get live election results and analysis with context
Speaker 1: Tuesday night on Bloomberg Radio, Television and the Bloomberg Podcast
Speaker 1: YouTube channel Time, and offer look at some of the
Speaker 1: other stories making news in New York and around the world.
Speaker 1: And for that we're joined by Bloomberg's Michael Barr.
Speaker 5: Michael, Good morning, Good morning Karen. Words of warning for
Speaker 5: North Korean troops training to fight for Russia inside Ukraine
Speaker 5: the US as those troops will be treated the same
Speaker 5: as Russians by the Ukrainian military. Secretary of State Antony
Speaker 5: Blincoln says around eight thousand North Korean troops and now
Speaker 5: station in the Kursk region of Russia.
Speaker 10: Russia has been training DPRK soldiers in artillery ua these
Speaker 10: basic infantry operations, including trench clearing, indicating that they fully
Speaker 10: intend to use these forces in frontline operations.
Speaker 5: Secretary Blincoln says they expect Russia to begin mobilizing these
Speaker 5: troops in the coming days. Crews are searching for bodies
Speaker 5: and stranded cars and sodden buildings as residents salvage what
Speaker 5: they can from ruined homes following monstrous flash floods in
Speaker 5: Spain that claimed at least one hundred and fifty eight lives.
Speaker 5: The death toll could rise more as search efforts continue.
Speaker 5: An unknown number remains missing. Since the twenty twenty election,
Speaker 5: the Cybersecurity Infrastructure Security Agency has been doing everything possible
Speaker 5: to reassure voters and correct any disinformation about the integrity
Speaker 5: of the American vote. Accusations of tampering and ballot dumping
Speaker 5: have made polling workers feel unsafe. CISA director Jen Easterly
Speaker 5: says seeing election workers subjected to threats, harassment, and in
Speaker 5: some cases forced to work behind bulletproof glass is very
Speaker 5: discouraging to her.
Speaker 11: They're not faceless bureaucrats. There are friends, there are neighbors.
Speaker 11: We see them in the community every single day, and
Speaker 11: they're not doing it for pay or for glory. They're
Speaker 11: doing it because they believe in our democracy and they
Speaker 11: deserve respect.
Speaker 5: Meanwhile, police in Portland, Oregon and Vancouver, Washington, are still
Speaker 5: looking for the suspect who set fires to voting drop boxes.
Speaker 5: A jury has been seated to hear the subway chocol
Speaker 5: case against Daniel Penny, with opening statements scheduled for today.
Speaker 5: The jury is compromised of seven women and five men,
Speaker 5: including four people of color. The defense use their challenges
Speaker 5: to strike at least ten people of color. Daniel Penny,
Speaker 5: a white marine veteran, pleads not guilty demandslaughter and criminally
Speaker 5: negligent homicide. He put a black man acting erratically in
Speaker 5: a New York City subway car into a fatal choke
Speaker 5: hold last year. Witnesses say the man, Jordan Neely, had
Speaker 5: been shouting and demanding money. Global news twenty four hours
Speaker 5: a day and whenever you want it with the Bloomberg News. Now,
Speaker 5: I'm Michael Barr. This is Bloomberg Karen.
Speaker 1: Sorry, Michael Barr, thank you. It is time now for
Speaker 1: the Bloomberg Sports Update, brought to you by Tri State Outye.
Speaker 1: Here's John Stamshower. John, good morning, Good morning Karen.
Speaker 12: Throughout October course, the New York baseball teams provided almost
Speaker 12: daily excitement of both their seasons ended with losses to
Speaker 12: the Dodgers. The NFL teams in New York not so good,
Speaker 12: both with two and six records begin Week nine, but
Speaker 12: on the final night of the month and met Live Stadium,
Speaker 12: the Jets got a much needed win and in their
Speaker 12: five game loser, three being in the Texans twenty one
Speaker 12: to thirteen, with Aaron Rodgers throwing three second half touchdown passes.
Speaker 12: The first two went to Garrett Wilson and both catches
Speaker 12: were made with one hand. The second one and especially
Speaker 12: highlight reel grab that came out of third and nineteen,
Speaker 12: was originally ruled out of bounds with James Don replay.
Speaker 12: Here was Wilson after the game.
Speaker 9: First one is just a drag route and Aaron, you know,
Speaker 9: comes to me late in progression and I got to
Speaker 9: make a play and luckily it blew wide open. After
Speaker 9: I caught the ball, Let's go to score a touchdown,
Speaker 9: you know, the second one, third down, and he trusted
Speaker 9: me to go and make a play again rights, he
Speaker 9: comes to me, it's it's kind of a down that
Speaker 9: no one expects to convert, and you know that can't
Speaker 9: be our mindset. We're the only ones I thought we
Speaker 9: were gonna convert.
Speaker 12: There also the first Jets touchdown for Devonte Adams. He
Speaker 12: came out of concussion protocol to score the final TV
Speaker 12: first win for the new Jets coach Jeff Obrick. The
Speaker 12: Houston qb CJ Stroud, just eleven of thirty two and
Speaker 12: six Giants are back in met Life on Sunday to
Speaker 12: play the six and two Washington Commanders big game of
Speaker 12: the NFC North six and one Detroit at five and
Speaker 12: two Green Bay. The Packers may have their QB Jordan
Speaker 12: Love despite leaving last week's game with injured groen, he
Speaker 12: was back at practice yesterday and Baltimore Lamar Jackson has
Speaker 12: not practiced yet this week. Said to be nurse I
Speaker 12: mean back in knee injuries. As for those Dodgers, they'll
Speaker 12: be honored today in La at parade a ceremony at
Speaker 12: Dodger Stadium. Freddie Freeman figures to get the biggest ovation,
Speaker 12: had one of the greatest World Series ever to spite
Speaker 12: an ankle injury, and now ESPN reporting Freeman's also playing
Speaker 12: with a broken rib. World Series ratings on Fox HIA
Speaker 12: since twenty seventeen averaging almost sixteen million viewers. Last year's
Speaker 12: World Series drew an average of nine million. John Stashedward
Speaker 12: Bloomberg Sports, Karen.
Speaker 4: And John.
Speaker 13: Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 13: and around the world on Bloomberg dot Com and the
Speaker 13: Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 2: And I'm John Tucker in the Bloomberg Interactive Brokers studios
Speaker 2: this morning, where it is coming up on five thirteen
Speaker 2: on Wall Street, Apple and Amazon delivering earnings after the
Speaker 2: close up regular trading and pre Marcus shares of Apple
Speaker 2: they are down over one percent. Amazon shares are up
Speaker 2: over five percent. Let's break down the results now with
Speaker 2: Bloomberg's critic. Pretty good morning, thanks for being with us.
Speaker 2: With Apple sales, China regulatory concerns, where do you want
Speaker 2: to start?
Speaker 8: Yeah, let's start with the China piece, because that seems
Speaker 8: to be the biggest takeaway from the Apple story. Yes,
Speaker 8: iPhone revenue grew in every single region, and that's kind
Speaker 8: of the top line from Tim Cook's comments post earnings,
Speaker 8: But it's that China story that really matters here simply
Speaker 8: because that's their growth market. That's where Apple's trying to
Speaker 8: not only secure some of their supply chains, which they
Speaker 8: have partially moved to India, by the way, but that's
Speaker 8: also where they're trying to access their consumer at a
Speaker 8: time when they're also doing a little bit of the
Speaker 8: catch up trade on AI. Those both of those concepts
Speaker 8: are kind of married in what happened about six weeks,
Speaker 8: well almost two months ago now I'm thinking about it.
Speaker 8: When it came to the latest iPhone launch, I think
Speaker 8: it was early September, September ninth, if memory serves me right,
Speaker 8: when just twenty four hours later, Huawei launched their own
Speaker 8: kind of latest smartphone as well, And I think that
Speaker 8: speaks to this idea that the market share that Apple
Speaker 8: was trying to gain in China has kind of been
Speaker 8: cannibalized by the Whahwei rival and the Wahwei product, and
Speaker 8: that's really what's eating into these margins. Nevertheless, it looks
Speaker 8: like they are still selling their products. People are still
Speaker 8: buying it, and for that reason, you're not seeing Apple
Speaker 8: shares down this morning as much as perhaps expected.
Speaker 2: The Apple intelligence features is that captured in the September quarter.
Speaker 7: It's not quite yet.
Speaker 8: And remember this is one of the things that has
Speaker 8: been a little bit of a handicap for the stock,
Speaker 8: or an overhang for the stock, and that when you're
Speaker 8: comparing it to some of the other big tech names Microsoft, Amazon,
Speaker 8: Alphabet even though they are very different businesses from Apple,
Speaker 8: they are still trading higher on this kind of AI trade.
Speaker 8: Apple has been the notable laggard simply because they haven't
Speaker 8: been able to really kind of capitalize on that technology.
Speaker 8: And they've only just now released that AI technology in
Speaker 8: some of their latest updates for the iPhone. So it's
Speaker 8: not going to show up in this latest quarter, but
Speaker 8: it might in the next view.
Speaker 2: Apple Services, you got to explain to me what that
Speaker 2: is and how's it doing that end of the business.
Speaker 8: Oh, I love this, so Apple Services personal obsession. And
Speaker 8: the reason I say this, you've tapped into a rich area,
Speaker 8: John Tucker. I say this because this was really crucial
Speaker 8: data and crucial revenue for Apple during the pandemic. And
Speaker 8: Apple Services is basically every time you go into the
Speaker 8: Apple Store, you get your screen fixed, you get a
Speaker 8: Apple update, you need some help from kind of the
Speaker 8: genius bar that among several of the other kind of
Speaker 8: app functions comes under the umbrella of Apple Services and
Speaker 8: makes up about a third of their revenue. And during COVID,
Speaker 8: that's the part that really tainked because nobody was going
Speaker 8: into Apple. So from a macro signal, which is kind
Speaker 8: of how I like to look at it, it's very
Speaker 8: crucial for Apple's kind of mobility story because Apple, at
Speaker 8: the end of the day, it's a hardware company, but
Speaker 8: it wants to be more than that.
Speaker 2: Okay, let's move on to Amazon. Now, of six percent
Speaker 2: pre market I seem to be several pillars. You have
Speaker 2: e commerce, advertising, cloud services. How did they deliver? Get
Speaker 2: about a little bit more than.
Speaker 8: A minute, let's talk about AWS. I think that's the
Speaker 8: takeaway here. Remember I on Weber Amazon Web Services. This
Speaker 8: is the number two player in the cloud space, second
Speaker 8: to Microsoft's Asia. The top line you need to know,
Speaker 8: and one number is thirty eight percent. That's the margin
Speaker 8: of revenue that Amazon is making on their cloud unit,
Speaker 8: and it is the highest record margin they've made going
Speaker 8: all the way back to Data in twenty fourteen. By comparison,
Speaker 8: Alphabet's cloud unit is trying to keep up. They're trying
Speaker 8: to break into this and their margin is only seventeen percent.
Speaker 8: So that's where Amazon is really wowing investors.
Speaker 2: And they cut costs. It's not just cost cutting, it's
Speaker 2: kind of an effort I guess, to reallocate resources real quick.
Speaker 2: How did that work out?
Speaker 8: They're still in the process where they have a logistics
Speaker 8: unit that hasn't been doing as well, so they're in
Speaker 8: the works of it, but the e commerce results coming
Speaker 8: in stronger than expected as well.
Speaker 1: This is Bloomberg Daybreak, your morning podcast on the stories
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