Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 3: The Dow comes into today with gains for thirteen straight sessions,
Speaker 3: and that is its longest winning streak since nineteen eighty seven.
Speaker 3: Optimism around the FED and earnings are fueling the rally. Today,
Speaker 3: we're seeing another tech company on the rise. Shares of
Speaker 3: meta platforms are up eight percent. The Facebook, Instagram, and
Speaker 3: thread zoner posted strong sales and gave a rosy outlook
Speaker 3: on the earnings call. CEO Mark Zuckerberg discussed the push
Speaker 3: to grow his latest social media platform.
Speaker 4: I feel like we're getting to a good place on
Speaker 4: that with Threads. There's still a lot of basic functionality
Speaker 4: to build. Once we get to the point where it's
Speaker 4: at hundreds of millions of people, assuming we can get there,
Speaker 4: then we'll worry about monetization. But I mean, that's basically
Speaker 4: the playbook that we're focused on.
Speaker 3: Meta CEO Mark Zuckerberg says for now, Threads is ad free.
Speaker 3: He won't add advertising until it's on a path to
Speaker 3: one billion users. That's a milestone Twitter never accomplished.
Speaker 2: Well, the other major story that we're following this morning,
Speaker 2: Nathan Centers on the FED, the Central Bank raised interest
Speaker 2: rates by a quarter percentage point, taking rates to the
Speaker 2: highest level in twenty two years.
Speaker 5: Now.
Speaker 2: Chair J Powell says the FED has a tough balancing act.
Speaker 6: It's really a question of how do you balance the
Speaker 6: two risks, the risk of doing too much or doing
Speaker 6: too little. And you know, I would say that, you know,
Speaker 6: we're coming to a place where where there really are
Speaker 6: risks on both sides. It's hard to say exactly whether
Speaker 6: whether they're in balance or not. But as our stances
Speaker 6: become more restrictive and inflation moderates, we do increasingly face
Speaker 6: that risk.
Speaker 2: And yesterday's rate increase was the eleventh hike in the
Speaker 2: last sixteen months.
Speaker 3: So now, Karen, the Fed's either done or very close
Speaker 3: to it. That's the takeaway from former New York Fed
Speaker 3: President and Bloomberg opinion columnist Bill Dudley.
Speaker 5: Chair Palm made very clear in the press conference that
Speaker 5: he doesn't see the need to go that much further.
Speaker 1: You know, the very fact that it's sort.
Speaker 5: Of meeting by meeting now tells you that.
Speaker 7: He thinks that, you know, maybe there's one more rate hike,
Speaker 7: maybe there's no more rate hikes as we go.
Speaker 3: But higher rates could be here for a while. Former
Speaker 3: New York Fed chief current Bloomberg Opinion columnist Bill Dudley
Speaker 3: still thinks the Fed stays tighter for longer until inflation
Speaker 3: comes down to two percent.
Speaker 2: Well.
Speaker 5: Interest rates are also in focus overseas.
Speaker 2: Nathan Economists expect the European Central Bank to tighten policy
Speaker 2: again today, and Bloomberg's Maria TODAYO is covering the ECB
Speaker 2: decision from Frankfurt.
Speaker 8: Now, the European Center Bank is expected to increase rates
Speaker 8: by twenty five basis points taken at deposit rate to
Speaker 8: three points seventy five percent, as it continues its most
Speaker 8: aggressive hiking cycle to date in an effort to tame inflation. Now,
Speaker 8: beyond the monetary policy decision itself, the focus will be
Speaker 8: on the press conference and any hints we may get
Speaker 8: from the head of the UCB, Christin Laguard in terms
Speaker 8: of the future path for rates going into September. In Frankfurt,
Speaker 8: Maria today at Bloomberg Daybreak.
Speaker 3: Okay, Maria, thank you staying in Europe. We have another
Speaker 3: onslaught of earnings out today and the results are lifting
Speaker 3: stocks from England to Italy. Let's get the leadst from
Speaker 3: Bloomberg's Ewan Parts in London.
Speaker 9: Good morning, Nathan and Karen. It's the busiest day of
Speaker 9: the busiest week for European earnings. Eighty three companies on
Speaker 9: the stocks eight hundred reporting today. Barclay Shares one of
Speaker 9: the big losers here in London. That's after it cut
Speaker 9: its guidance for net interest margin at its retail bank,
Speaker 9: signaling the boost from rising rates is coming to an end.
Speaker 9: Francis's biggest bank, BNP Parabar, though beating estimates after tightly
Speaker 9: controlling costs, it shares higher in Paris today. An energy
Speaker 9: giant Shell pledging five and a half billion dollars in
Speaker 9: share buybacks, even as profits full from last year's highs
Speaker 9: and earnings beats from consumer goods giant Nesley and from
Speaker 9: French retailer car For in London, I'm une Pot's boom bag.
Speaker 5: Daybreak you and thank you well.
Speaker 2: Back here in the US, there are new questions about
Speaker 2: the health of Senate Majority leader Mitch McConnell. That's after
Speaker 2: he throwze mid sentence during a news conference on Capitol
Speaker 2: Hill yesterday. And Bloomberg's Amy Morris supports from our ninety
Speaker 2: nine to one newsroom in Washington.
Speaker 10: Senator McConnell abruptly stopped speaking froze in place for about
Speaker 10: twenty seconds before being led away by Senator John Barresso
Speaker 10: of Wyoming, who also happens to be a physician. Hours later,
Speaker 10: McConnell left his office saying President Biden called a check
Speaker 10: on him.
Speaker 1: President check on me. I told him I got.
Speaker 10: Sandbag, sandbag, referring to President Biden's recent fall when he
Speaker 10: stumbled over a sand bag on a stage. McConnell did
Speaker 10: not answer questions about whether he'd seen a doctor. This
Speaker 10: comes just months after the eighty one year old McConnell's
Speaker 10: suffered a concussion and broken rib in a fall at
Speaker 10: a fundraiser in Washington. He was discharged from the hospital
Speaker 10: on March twenty fifth, but did not return to the
Speaker 10: Senate until mid April. In Washington, I Amy Morris Bloomberg Daybreak.
Speaker 3: Thanks for that on the Senate Minority Leader Amy Meantime,
Speaker 3: a heat wave continues to engulf large swaths of the US,
Speaker 3: and now the nation's largest electrical grid is declaring an
Speaker 3: emergency alert for today. Bloomberg's John Tucker has.
Speaker 11: The latest PJM Interconnection has declared a Level one emergency
Speaker 11: for the thirteen state Eastern US grid, calling on all
Speaker 11: power plants to operate at full capacity. The alert means
Speaker 11: it's concerned about being able to maintain adequate power reserves
Speaker 11: today as consumers and businesses turn up air conditioners amid
Speaker 11: the scorching heat. They also told consumers enrolled in demand
Speaker 11: response programs to be ready to cut back on their
Speaker 11: electricity usage. The alert just happens to come on the
Speaker 11: same day President Biden is unveiling a series of new
Speaker 11: actions to protect American workers from extreme heat conditions in
Speaker 11: New York. I'm John Tucker Bloomberg dam.
Speaker 3: Break, and now it's time to take a look at
Speaker 3: some of the other stories making news in New York
Speaker 3: and around the world with Bloomberg's Michael Barr.
Speaker 1: Good morning, Michael, Good morning, Nathan. The investigation has begun
Speaker 1: into a collapse in crane at a New York City
Speaker 1: construction site. Yesterday's collapse in Manhattan send workers and residents
Speaker 1: scrambling for cover at tenth Avenue and forty first Street.
Speaker 1: The crane had been pouring concrete forty five stories up
Speaker 1: when a fire broke out, sending the boom cracking into
Speaker 1: another building before falling to the street. New York City
Speaker 1: Fire First Deputy Commissioner James Pfeiffer and.
Speaker 12: As the fire heats the cable, the cable weakens to
Speaker 12: a point where the loses its strength and that's where
Speaker 12: the collapse occurs.
Speaker 1: Eleven people were injured, but fortunately no one was killed.
Speaker 1: What's next now that the plea deal in Hunter Biden's
Speaker 1: criminal case unraveled. During a court hearing in Delaware, a
Speaker 1: federal judge raised concerns about the terms of the agreement.
Speaker 1: President Biden's son was charged with two misdemeanor counts of
Speaker 1: willful failure to pay federal income tax. He was also
Speaker 1: set to accept the plea deal that included a third
Speaker 1: charge of possession of a handgun by a drug user.
Speaker 1: Press Secretary Karine Jean Pierre said Hunter Biden is a
Speaker 1: private citizen and the White House will not be commenting
Speaker 1: on the ongoing situation.
Speaker 2: I think this was an independent investigation that was overseen
Speaker 2: by the Department of Justice. As we've been very clear
Speaker 2: they are independent.
Speaker 13: We give them the.
Speaker 5: Space to do to do their work.
Speaker 2: We believe in the rule of law.
Speaker 1: Hunter Biden had been expected to plead guilty after making
Speaker 1: an agreement with the prosecutors, who were planning to recommend
Speaker 1: two years of probation. Donald Trump says he wants to
Speaker 1: see President Joe Biden impeached Bloomberg's head backs to.
Speaker 12: Reports, Trump is following the lead of several others, including
Speaker 12: Ron DeSantis saying earlier this week that the business dealings
Speaker 12: of Hunter Biden and possible involvement with the President are
Speaker 12: grounds for impeachment. While this started on the flanks of
Speaker 12: the right, it has gained some footing running toward the middle,
Speaker 12: especially with Trump allies, But sources say behind closed doors,
Speaker 12: including House Speaker Kevin McCarthy, say that they really don't
Speaker 12: know much about the President's involvement in his son's business dealings,
Speaker 12: but with Trump jumping in, it now does change the dynamics.
Speaker 12: In San Francisco. I'm at Baxter Bloomberg Daybreak told.
Speaker 1: Cheats cost New Jersey more than one hundred and seventeen
Speaker 1: million dollars last year, according to the Turnplank Authority and
Speaker 1: Laware River Joint Toll Bridge Commission. It's a chronic problem
Speaker 1: that officials say has become even worse since the pandemic.
Speaker 1: Global News twenty four hours a day, powered by more
Speaker 1: than twenty seven hundred journalist nailysts in over one hundred
Speaker 1: and twenty countries. How Michaelabar, this is Bloomberg.
Speaker 3: Nathan, Thank you, Michael. Time now for the Bloomberg Sports Update.
Speaker 3: Here's John Stashout.
Speaker 1: Thanks day.
Speaker 7: Thank Carlos Redon was the Yankees prize free agent signing
Speaker 7: of the offseason. Got a six year deal, but then
Speaker 7: missed the first half of the season and.
Speaker 1: Then struggled on the road.
Speaker 7: Came into the Subway Series finale at the Stadium oh
Speaker 7: to three with a seventy ra but Radon pitched into
Speaker 7: the sixth. Then he gave up to just one run
Speaker 7: four hits. Yankees beat the Mets three to one. Redon's
Speaker 7: manager is Aaron Boom.
Speaker 13: It's been a long road for him, you know, I
Speaker 13: remember sitting up here when we signed him and how
Speaker 13: meaningful it was to him. And then to have you know,
Speaker 13: a couple setbacks there in spring training that slowed him,
Speaker 13: you know, definitely wore on him and ate at him,
Speaker 13: and he you know, he hated not being.
Speaker 5: Out there with us.
Speaker 7: Jose Kintana Gredonno left who signed in the offseason, was
Speaker 7: then injured, took the loss. He's now zero and two
Speaker 7: for the Mets, who hosts Washington tonight. The Yankees are
Speaker 7: in Baltimore tomorrow. Sounds as if Aaron Judge is gonna
Speaker 7: make his return from the injured tow. He's been out
Speaker 7: since early June, and obviously he has been sorely missed. Also,
Speaker 7: sounds like the Angels are not going to trade sho
Speaker 7: Hey O'tani before Tuesday's deadline. They just acquired a pitcher,
Speaker 7: Lucas Gilito from the White Sox contract extension for Baseball
Speaker 7: Commissioner Rob Manfred. He's had the job since twenty fifteen,
Speaker 7: and he'll now have it through at least twenty twenty
Speaker 7: nine Women's World Cup in New Zealand, a rematch of
Speaker 7: the twenty nineteen Cup final that the US one. They
Speaker 7: trailed until a Lindsay Horan had her sixtieth minute game
Speaker 7: ended one to one, both teams likely to advance. When
Speaker 7: the Jets got Aaron Rodgers, they got his contract from
Speaker 7: Green Bay, owed him one hundred and ten million dollars
Speaker 7: that would have put them in salar. Rodgers and the
Speaker 7: Jets have agreed to restructure the deal, and Rodrews has
Speaker 7: agreed to take less money. Andrew Thomas getting a lot more.
Speaker 7: The Giants Pro Bowl Tackle just got a five year
Speaker 7: extension hundreds seventeen million, sixty seven million, Ganante, John Stashellward.
Speaker 1: Bloomberg Sports.
Speaker 14: From coast to coast, from New York to San Francisco,
Speaker 14: Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg
Speaker 14: Business app, and Bloomberg dot Com.
Speaker 3: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. It
Speaker 3: is a big beat for a big name in tech.
Speaker 3: We are watching shares of Meta Platforms surge in the
Speaker 3: pre market after revenues and the sales forecast for the
Speaker 3: current quarter came in better than expected. Is Mark Zuckerberg's
Speaker 3: year of efficiency starting to pay off at the Facebook
Speaker 3: parent company? Let's get reaction from someone who has been
Speaker 3: very bullish on the broader tech story for quite some time.
Speaker 3: Dan Ives is with us this morning, senior equity research
Speaker 3: analyst at Webbush Securities. Dan, It's good to speak with
Speaker 3: you again. Is this about the cost cutting that we've
Speaker 3: seen at meta platforms? Or does this say something about
Speaker 3: a better economic picture going forward for tech.
Speaker 15: Yeah, Nathan, this is not just a vish. This is
Speaker 15: actually digital advertising that's starting to ramp back up to
Speaker 15: double digit growth. They should have had Rocky two movie
Speaker 15: playing in the background during that conference call, because this
Speaker 15: is a Rocky bout bolet. Comeback for Zuckerberg and Facebook
Speaker 15: just a huge not just for FASA but also for
Speaker 15: big tech in terms of digital advertising. Comeback a huge print.
Speaker 3: Yeah, we know how meta platforms has been pretty beaten
Speaker 3: down in the last several quarters.
Speaker 1: Here.
Speaker 3: Where do you see the momentum going when it comes
Speaker 3: to digital advertising, particularly after what we saw from Alphabet,
Speaker 3: the parent company of Google, and the better than expected
Speaker 3: results on digital advertising. There is it going to be sustained?
Speaker 15: I think right now there's an inflection point. You're seeing
Speaker 15: an uptick digital advertising. We're seeing an uptick in cloud.
Speaker 15: That's a green light for tech because that really shows
Speaker 15: the best barometers Meta and Google seeing an uptick, and
Speaker 15: that's important in terms of the broader tech market. I
Speaker 15: also think for Meta they're focused now in AI as
Speaker 15: that next step three legged stool, and you sort of
Speaker 15: combine this all with that install based if you're a
Speaker 15: bull right now, you're drinking your copee smiling because this
Speaker 15: is going to be a great day for Meta.
Speaker 3: Well, tell me a little bit more about how Meta
Speaker 3: could use AI going forward here. Is it going to
Speaker 3: be about development that Meta can do in the artificial
Speaker 3: intelligence space or is it going to be about how
Speaker 3: Meta uses AI as it already is.
Speaker 15: It's really the latter. It's about how they're going to
Speaker 15: focus more for advertisers, more targeting, more ability for the
Speaker 15: consumer to get ultimately personalized messages, personalized data. That's how
Speaker 15: they're ultimately going to look at this In terms of
Speaker 15: monetization of AI. This is going to happen soon. They
Speaker 15: expected the ironic thing. They're spending more on AI than
Speaker 15: Meta first, and I think that name change or maybe
Speaker 15: became well too soon.
Speaker 1: Yeah, I was going to get to that.
Speaker 3: Does this mean that the focus for Meta and for
Speaker 3: investors in Meta is going to be more on sort
Speaker 3: of those legacy for lack of a better word, products
Speaker 3: that the meta has, the facebooks, the instagrams that now
Speaker 3: threads as opposed to the metaverse. Bet that Even on
Speaker 3: the call, Mark Zuckerberg was saying he still thinks it's
Speaker 3: going to be the right bet.
Speaker 15: Yeah, the hearts and lungs of this story are Facebook,
Speaker 15: are Instagram. That's the core. That's what's happening with engagements,
Speaker 15: that's the advertising uptick. And when you could AI, it's
Speaker 15: about monetizement installed these metaverse. They'll talk the game, but
Speaker 15: realistically that is now put in the back of that
Speaker 15: closet the doors shut. It's next to that piece of
Speaker 15: paper you haven't seen in ten years.
Speaker 3: Is Threads still going to be a thing a year
Speaker 3: from now?
Speaker 15: Dan, I think Threads is really gonna significantly decline from
Speaker 15: gonna get you're already seeing it. I think it sounded
Speaker 15: great for forty eight hours. I don't view it as
Speaker 15: a Twitter killer. It's additive for them, there is no risk.
Speaker 15: But ultimately I think this is gonna be an ever
Speaker 15: psychle uphill battle to have success on Threads. I think
Speaker 15: many are seeing that over the last week.
Speaker 3: Only got about a minute left here, But in the
Speaker 3: time we have left, I got to ask you about Microsoft.
Speaker 3: That's been kind of the outlier so far in tech,
Speaker 3: with the shares falling nearly four percent yesterday on the
Speaker 3: disappointing as your cloud business. Is Microsoft still a buye
Speaker 3: for you.
Speaker 15: I think that stock going down was a gift because
Speaker 15: if you look at the cloud story of Microsoft, it
Speaker 15: is just start and that's a typical playbook for Nadella.
Speaker 15: Be conservative, out of the gate. Bears will take it down.
Speaker 15: You look where it is in the next month, three months,
Speaker 15: and I think this is a three and a half
Speaker 15: trillion dollars mark ap No one is weeding more AI
Speaker 15: than Cloud.
Speaker 8: Is.
Speaker 3: Bloomberg Daybreak Today your morning brief on the stories making
Speaker 3: news from Wall Street to Washington and beyond.
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Speaker 5: I'm Nathan Hager and I'm Karen Moscow.
Speaker 2: Join us again tomorrow morning for all the news you
Speaker 2: need to start your day right here on Bloomberg Daybreak