1
00:00:02,400 --> 00:00:02,920
Speaker 1: Good morning.

2
00:00:02,960 --> 00:00:05,760
Speaker 2: It's Thursday, the twenty sixth of October in London. This

3
00:00:05,880 --> 00:00:08,960
Speaker 2: is the Bloomberg Daybreak Ero podcast. I'm Stephen Carroll. Coming

4
00:00:09,039 --> 00:00:13,360
Speaker 2: up today, Israeli troops make incursions into Gaza, as Netanyahu

5
00:00:13,520 --> 00:00:18,360
Speaker 2: talks ground invasion preparations, shares in standard chartered drop as

6
00:00:18,400 --> 00:00:22,320
Speaker 2: the lender reveals it's China challenges, and fourth time lucky

7
00:00:22,400 --> 00:00:25,360
Speaker 2: Republicans elect a little known Trump ally as the next

8
00:00:25,480 --> 00:00:28,400
Speaker 2: House speaker. Let's start with a roundup of our top stories.

9
00:00:29,880 --> 00:00:33,240
Speaker 2: Israel's military has said it made limited ground raids inside

10
00:00:33,240 --> 00:00:38,599
Speaker 2: northern Gaza overnight to attack Hamas targets before withdrawing. It's

11
00:00:38,640 --> 00:00:40,920
Speaker 2: the latest in a series of small incursions that may

12
00:00:40,960 --> 00:00:44,599
Speaker 2: also be aimed at rescuing hostages and gathering intelligence, and

13
00:00:44,640 --> 00:00:47,560
Speaker 2: comes as Israel's Prime Minister Benjaminettaniah who said the country

14
00:00:47,640 --> 00:00:51,120
Speaker 2: is getting ready for a ground invasion. His words are

15
00:00:51,159 --> 00:00:52,960
Speaker 2: spoken through a translator.

16
00:00:52,760 --> 00:01:00,600
Speaker 3: Oh hamas militants are doomed above the earth, underground, within

17
00:01:00,720 --> 00:01:03,200
Speaker 3: Gaza and outside of Gaza.

18
00:01:04,520 --> 00:01:07,800
Speaker 2: Netanyahu's comments came after the US President, Joe Biden said

19
00:01:07,800 --> 00:01:10,399
Speaker 2: he'd asked Israel to delay an invasion of Gaza so

20
00:01:10,440 --> 00:01:13,560
Speaker 2: that more hostages held by Hamas could be freed. The

21
00:01:13,560 --> 00:01:16,800
Speaker 2: two leaders spoke by phone again on Wednesday. The United

22
00:01:16,880 --> 00:01:19,840
Speaker 2: Nations says its shelters have been overwhelmed by almost six

23
00:01:19,920 --> 00:01:24,120
Speaker 2: hundred thousand Palestinians who fled their homes in the territory.

24
00:01:24,360 --> 00:01:27,080
Speaker 2: European Central Bank President Christine Leagalde says the battle against

25
00:01:27,120 --> 00:01:30,280
Speaker 2: inflation isn't over, but she's confident it can be won.

26
00:01:30,720 --> 00:01:33,679
Speaker 2: Speaking to Greek television ahead of today's ECB policy meeting

27
00:01:33,720 --> 00:01:36,440
Speaker 2: in Athens, Laguard said, quote, we are not done yet,

28
00:01:36,680 --> 00:01:40,040
Speaker 2: adding officials must be very attentive to the risks. Despite

29
00:01:40,040 --> 00:01:42,520
Speaker 2: the hocket rhetoric, the Central Bank is today expected to

30
00:01:42,560 --> 00:01:45,319
Speaker 2: hold rate study at four percent. The pause would be

31
00:01:45,319 --> 00:01:47,360
Speaker 2: the first in over a year. Will bring you the

32
00:01:47,360 --> 00:01:51,279
Speaker 2: decision live here on Bloomberg at one fifteen pm London time.

33
00:01:52,200 --> 00:01:54,720
Speaker 2: Shares in Standard Charter to have fallen in Hong Kong

34
00:01:54,760 --> 00:01:57,680
Speaker 2: after the bank reported lower than expected profits and charges

35
00:01:57,720 --> 00:02:00,960
Speaker 2: related to investments in China. PAX profits at the Asia

36
00:02:01,000 --> 00:02:03,640
Speaker 2: Focus Bank fell by two percent to one point three

37
00:02:03,760 --> 00:02:07,720
Speaker 2: two billion dollars in the third quarter. CFO Andy Halford

38
00:02:07,920 --> 00:02:11,400
Speaker 2: wants investors to see past these numbers to the outlook.

39
00:02:11,840 --> 00:02:15,000
Speaker 4: Look at what we're saying about the outlook. It is

40
00:02:15,120 --> 00:02:18,079
Speaker 4: exactly the same as what we were saying before. We

41
00:02:18,120 --> 00:02:20,320
Speaker 4: still think we can get the same top line growth

42
00:02:20,320 --> 00:02:22,320
Speaker 4: this year. We still think we can get the same

43
00:02:22,320 --> 00:02:24,799
Speaker 4: top line growth next year. We still think we can

44
00:02:24,840 --> 00:02:27,440
Speaker 4: get the rosie up to double digits this year and

45
00:02:27,600 --> 00:02:29,799
Speaker 4: up to eleven percent next year. There will be a

46
00:02:29,840 --> 00:02:31,800
Speaker 4: lot of focus upon the NIM, which was a little

47
00:02:31,840 --> 00:02:34,880
Speaker 4: bit weaker today, but it is one component of many.

48
00:02:35,160 --> 00:02:37,799
Speaker 4: The risk of business is really performing very strongly.

49
00:02:38,600 --> 00:02:41,800
Speaker 2: Halford pointed to brighter spots like operating income, which rose

50
00:02:41,840 --> 00:02:44,440
Speaker 2: by six percent in the quarter, driven by an increase

51
00:02:44,480 --> 00:02:47,839
Speaker 2: in lending income and wealth management, but provisions for loan

52
00:02:47,880 --> 00:02:53,760
Speaker 2: losses increased reflecting the uncertain trajectory of China's economy. BNP

53
00:02:53,840 --> 00:02:57,400
Speaker 2: Paribas added to the list of European banks underperforming their

54
00:02:57,440 --> 00:03:01,200
Speaker 2: Wall Street counterparts. Weaker than expected fix income revenue saw

55
00:03:01,280 --> 00:03:04,760
Speaker 2: Bond the bond trading unit earned twelve percent less than

56
00:03:04,840 --> 00:03:08,440
Speaker 2: last year, but the bank's CFO Lars Mashneil told Bloomberg

57
00:03:08,480 --> 00:03:11,320
Speaker 2: that they're still well placed for the coming year.

58
00:03:11,639 --> 00:03:13,920
Speaker 5: Also look at pretexts income in the quarter at seven

59
00:03:13,960 --> 00:03:17,280
Speaker 5: percent if you look near today bottom line up nine percent,

60
00:03:17,560 --> 00:03:19,840
Speaker 5: if you add the share buy back that we've been doing,

61
00:03:20,160 --> 00:03:23,040
Speaker 5: Unix press share of fifteen percent. So don't zoom in

62
00:03:23,080 --> 00:03:25,679
Speaker 5: on one thing which was impacted by a high level

63
00:03:25,760 --> 00:03:28,000
Speaker 5: of last year. Look at what we're doing in a

64
00:03:28,120 --> 00:03:30,440
Speaker 5: diversified way, standing by our clients.

65
00:03:31,080 --> 00:03:33,519
Speaker 2: And you can hear that full interview with the CFO

66
00:03:33,600 --> 00:03:36,920
Speaker 2: of BNP Parabell, Lars Mahinil on the Bloomberg Talks podcast.

67
00:03:37,040 --> 00:03:39,560
Speaker 2: The bank's overall net income came in at two point

68
00:03:39,600 --> 00:03:43,000
Speaker 2: six six billion euros, missing estimates. It shares down almost

69
00:03:43,040 --> 00:03:47,320
Speaker 2: four percent in early trading in Paris. Ted Peck will

70
00:03:47,320 --> 00:03:50,920
Speaker 2: become Morgan Stanley's new CEO. He succeeds James Gorman after

71
00:03:50,960 --> 00:03:54,160
Speaker 2: a fourteen year run that reshaped the US bank in

72
00:03:54,160 --> 00:03:56,560
Speaker 2: the wake of the financial crisis. More now from Bloomberg's

73
00:03:56,600 --> 00:03:57,680
Speaker 2: Charlie Pellett.

74
00:03:57,680 --> 00:04:01,280
Speaker 1: Pickers, a three decade veteran of the Rman Co President.

75
00:04:01,320 --> 00:04:03,520
Speaker 1: In a statement, the bank said he will be elevated

76
00:04:03,560 --> 00:04:06,280
Speaker 1: to the top role in January and join the board.

77
00:04:06,520 --> 00:04:08,880
Speaker 1: The sixty five year old Gorman will stay on as

78
00:04:08,960 --> 00:04:12,320
Speaker 1: executive chairman. In tapping pick, the firm is turning to

79
00:04:12,360 --> 00:04:15,440
Speaker 1: the man credited with spurring a revival in its trading

80
00:04:15,480 --> 00:04:18,680
Speaker 1: business after a perilous stretch during the two thousand and

81
00:04:18,720 --> 00:04:22,800
Speaker 1: eight financial crisis, a period when clients ditched Morgan Stanley

82
00:04:23,000 --> 00:04:27,479
Speaker 1: and doubts about its ability to survive reverberated around Wall

83
00:04:27,520 --> 00:04:32,880
Speaker 1: Street in New York. Charlie Pellett Bloomberg Radio.

84
00:04:31,760 --> 00:04:34,719
Speaker 2: Shares in Meta's late and after ours trading, after the

85
00:04:34,760 --> 00:04:38,480
Speaker 2: social media giant's CFO Susan Lee said the revenue outlook

86
00:04:38,680 --> 00:04:42,640
Speaker 2: is uncertain for the next year. The comments put a

87
00:04:42,720 --> 00:04:45,440
Speaker 2: damper on an otherwise upbeat earnings report. The revenue is

88
00:04:45,480 --> 00:04:49,400
Speaker 2: higher than expected. Meta shares initially climbed but then said

89
00:04:49,480 --> 00:04:53,479
Speaker 2: by more than three percent in extended trading. And to

90
00:04:53,600 --> 00:04:57,040
Speaker 2: US politics. Now, after twenty two days, fourteen candidates and

91
00:04:57,120 --> 00:05:00,520
Speaker 2: four nominees, the House of Representatives has a new speaker.

92
00:05:00,800 --> 00:05:03,760
Speaker 2: In the end, Republicans voted unanimously to install a little

93
00:05:03,800 --> 00:05:08,160
Speaker 2: known Trump ally in the post. Louisiana Congressman Mike Johnson

94
00:05:08,279 --> 00:05:11,160
Speaker 2: was a prominent supporter of efforts to overturn Joe Biden's

95
00:05:11,160 --> 00:05:14,000
Speaker 2: twenty twenty election victory. Here's what he told the House

96
00:05:14,080 --> 00:05:14,800
Speaker 2: after his election.

97
00:05:15,240 --> 00:05:17,040
Speaker 6: They have been watching this drama play out for a

98
00:05:17,080 --> 00:05:19,599
Speaker 6: few weeks. We've learned a lot of lessons. But you

99
00:05:19,640 --> 00:05:25,000
Speaker 6: know what, through adversity, it makes you stronger. And Yeah,

100
00:05:24,520 --> 00:05:28,159
Speaker 6: and we want our allies around the world to note

101
00:05:28,160 --> 00:05:31,479
Speaker 6: that this body of lawmakers is reporting again to our

102
00:05:31,560 --> 00:05:35,239
Speaker 6: duty stations. Let the enemies of freedom around the world

103
00:05:35,279 --> 00:05:39,040
Speaker 6: hear us loud and clear. The People's House is back

104
00:05:39,120 --> 00:05:42,000
Speaker 6: in business.

105
00:05:43,400 --> 00:05:46,080
Speaker 2: Johnson is an outspoken opponent of same sex marriage and

106
00:05:46,120 --> 00:05:50,240
Speaker 2: a fervent advocate for cutting government spending. Well, let's turn

107
00:05:50,320 --> 00:05:52,920
Speaker 2: to the Middle East now, the latest developments there. Overnight

108
00:05:53,000 --> 00:05:55,640
Speaker 2: the US President asking Israel to delay a grand invasion

109
00:05:55,640 --> 00:05:59,599
Speaker 2: of Gaza to allow for talks over of hostages. Benjaminettnia,

110
00:05:59,640 --> 00:06:02,960
Speaker 2: who though reiterating his country was preparing a ground offensive

111
00:06:03,040 --> 00:06:05,760
Speaker 2: as the Israeli military has said that it carried out

112
00:06:05,800 --> 00:06:10,400
Speaker 2: some limited incursions into northern Gaza overnight. Our head of

113
00:06:10,440 --> 00:06:13,279
Speaker 2: Middle Eastern North Africa, Stuart Livingstone Wallas, joins us now

114
00:06:13,320 --> 00:06:16,960
Speaker 2: for more on this. Stewart, good morning to you. Can

115
00:06:17,000 --> 00:06:19,240
Speaker 2: you just first of all start by taking us through

116
00:06:19,279 --> 00:06:22,680
Speaker 2: these latest developments. What we heard from the Israeli military

117
00:06:22,800 --> 00:06:27,000
Speaker 2: about limited raids they carried out in Gaza.

118
00:06:27,120 --> 00:06:28,160
Speaker 7: Yeah, good morning, Stephen.

119
00:06:28,440 --> 00:06:28,640
Speaker 3: Yeah.

120
00:06:28,680 --> 00:06:30,320
Speaker 7: So, I mean, this was a discussion we have this

121
00:06:30,360 --> 00:06:32,800
Speaker 7: morning about how do we differentiate between sort of the

122
00:06:32,839 --> 00:06:35,599
Speaker 7: limited incursion and a ground war, because they on the

123
00:06:35,600 --> 00:06:37,839
Speaker 7: face of it look quite similar. I mean, so, for instance,

124
00:06:37,839 --> 00:06:41,599
Speaker 7: the limited incursions included tanks, which I think most of

125
00:06:41,640 --> 00:06:43,479
Speaker 7: us would think of as a ground war. But I

126
00:06:43,520 --> 00:06:47,200
Speaker 7: think the way we're interpreting it as a ground war

127
00:06:47,240 --> 00:06:50,599
Speaker 7: would look like is obviously a much larger operation and

128
00:06:50,600 --> 00:06:53,520
Speaker 7: an operation that's intended to not only take territory but

129
00:06:53,560 --> 00:06:57,240
Speaker 7: then control it, Whereas I think what we have seen

130
00:06:57,320 --> 00:07:00,640
Speaker 7: this time is sort of I hesitate to describe it

131
00:07:00,640 --> 00:07:02,000
Speaker 7: as a quick in and out, but that's kind of

132
00:07:02,040 --> 00:07:03,440
Speaker 7: what it looks like. You know, it has a very

133
00:07:03,440 --> 00:07:06,799
Speaker 7: specific target, and then there's a retreat after that once

134
00:07:06,880 --> 00:07:11,240
Speaker 7: that objective is achieved. So I mean, in terms of

135
00:07:11,280 --> 00:07:13,480
Speaker 7: the sort of the latest developments on the diplomatic front,

136
00:07:13,480 --> 00:07:16,280
Speaker 7: which I think is what everyone's got their eye on, obviously,

137
00:07:16,360 --> 00:07:18,560
Speaker 7: we did have come out and say that he has

138
00:07:18,560 --> 00:07:22,200
Speaker 7: at least requested that they hold off on a ground

139
00:07:22,240 --> 00:07:24,960
Speaker 7: war proper until they can make some headway on the

140
00:07:25,000 --> 00:07:27,480
Speaker 7: hostage issue. That's number one. There's still more than two

141
00:07:27,560 --> 00:07:30,960
Speaker 7: hundred hostages in Gaza as far as we're aware, and

142
00:07:31,000 --> 00:07:33,440
Speaker 7: they have been trickling out at a very very small,

143
00:07:34,760 --> 00:07:36,320
Speaker 7: a very low rate, you know, I think we've had

144
00:07:36,320 --> 00:07:40,440
Speaker 7: four so far. Secondly, to give the US a chance

145
00:07:40,520 --> 00:07:43,480
Speaker 7: to move more equipment and personnel into the region to

146
00:07:43,480 --> 00:07:45,880
Speaker 7: protect its own assets, because we have seen a pick

147
00:07:45,960 --> 00:07:49,920
Speaker 7: up in drone and rocket attacks on US military basis,

148
00:07:50,040 --> 00:07:53,320
Speaker 7: primarily in Iraq and Syria. But again, remember the US

149
00:07:53,320 --> 00:07:56,920
Speaker 7: has bases all over the Middle East that need protecting.

150
00:07:57,040 --> 00:08:00,400
Speaker 7: And then thirdly the issue of humanitarian aid. So again

151
00:08:00,400 --> 00:08:02,280
Speaker 7: we're seeing a trickle of aid come in from Egypt

152
00:08:02,360 --> 00:08:05,800
Speaker 7: across that Raffa bored acrossing into southern Gaza, but it's

153
00:08:05,840 --> 00:08:10,320
Speaker 7: nowhere near the volume needed to meet the demands of

154
00:08:10,600 --> 00:08:12,400
Speaker 7: size of the population that you have in Gaza, which

155
00:08:12,400 --> 00:08:13,679
Speaker 7: is sort of a couple of million people.

156
00:08:14,560 --> 00:08:17,400
Speaker 2: And of course, the discussions of the UN Security Council

157
00:08:17,480 --> 00:08:20,120
Speaker 2: had been central to the diplomatic wrangling we were talking

158
00:08:20,120 --> 00:08:23,360
Speaker 2: about twenty four hours ago, but that actually continued on

159
00:08:23,480 --> 00:08:27,600
Speaker 2: Wednesday to still no agreement on a resolution for a

160
00:08:27,720 --> 00:08:31,160
Speaker 2: humanitarian pause or a ceasefire or anything that would allow

161
00:08:31,400 --> 00:08:33,400
Speaker 2: more aid to be brought into Gaza.

162
00:08:34,320 --> 00:08:37,319
Speaker 7: Yeah, and I think that's sort of a good example

163
00:08:37,400 --> 00:08:40,240
Speaker 7: of basically they're not really getting anywhere at the UN.

164
00:08:40,280 --> 00:08:42,200
Speaker 7: And we saw earlier in the week, you know, a

165
00:08:42,320 --> 00:08:45,800
Speaker 7: very tense moment, whether the Secretary General made a statement

166
00:08:45,800 --> 00:08:49,160
Speaker 7: about the situation that was met with absolute fury by

167
00:08:49,160 --> 00:08:52,640
Speaker 7: the Israelis or the demand for Secretary General's resignation. There

168
00:08:52,720 --> 00:08:55,520
Speaker 7: was sort of this tip for tap where various sides

169
00:08:55,520 --> 00:08:57,240
Speaker 7: were trying to get a resolution across and they were

170
00:08:57,280 --> 00:09:01,480
Speaker 7: just being repeatedly vetoed. Now, I am not a UN expert,

171
00:09:01,559 --> 00:09:05,000
Speaker 7: but hul looks like we're not really going to get

172
00:09:05,000 --> 00:09:07,080
Speaker 7: a great deal of action from the UN that will

173
00:09:07,080 --> 00:09:09,160
Speaker 7: have any impact on what's happening on the ground.

174
00:09:09,800 --> 00:09:13,560
Speaker 2: What about the perceptions regionally allowed attention being paid to

175
00:09:13,559 --> 00:09:16,800
Speaker 2: comments by Queen Rannie of Jordan criticizing Israel's response to

176
00:09:16,840 --> 00:09:18,000
Speaker 2: the Hamas attacks.

177
00:09:18,840 --> 00:09:21,200
Speaker 7: Yeah, I mean, I think that speaks to really a

178
00:09:21,240 --> 00:09:24,080
Speaker 7: division that we've seen emerge in terms of the international

179
00:09:24,320 --> 00:09:28,720
Speaker 7: stance on what is happening. And I think that maybe

180
00:09:28,720 --> 00:09:31,760
Speaker 7: it's no great surprise that Middle Eastern leaders have felt

181
00:09:31,760 --> 00:09:35,480
Speaker 7: obliged to become ever more vociferous about the humanitarian situation

182
00:09:36,160 --> 00:09:38,520
Speaker 7: in some respects that's a reflection of the sort of

183
00:09:38,520 --> 00:09:41,199
Speaker 7: the popular sentiment I would say amongst the populations of

184
00:09:41,240 --> 00:09:45,120
Speaker 7: the Middle East. But beyond that, the division has really

185
00:09:45,120 --> 00:09:48,280
Speaker 7: sort of come down to context and how these events

186
00:09:48,280 --> 00:09:51,480
Speaker 7: are being described. So certainly within Israel, the context is

187
00:09:51,600 --> 00:09:55,400
Speaker 7: very much one of centuries and centuries and centuries of

188
00:09:55,920 --> 00:09:58,679
Speaker 7: very difficult times and genocide and so on, and the

189
00:09:58,679 --> 00:10:01,480
Speaker 7: context within the arable it's become one of what's happened

190
00:10:01,520 --> 00:10:04,960
Speaker 7: maybe in more recent decades in that specific area, and

191
00:10:05,000 --> 00:10:07,440
Speaker 7: that's really where we're seeing sort of the differentiation between

192
00:10:07,679 --> 00:10:11,880
Speaker 7: between it. But again no easy way of seeing how

193
00:10:11,920 --> 00:10:13,760
Speaker 7: you resolve that tension.

194
00:10:14,200 --> 00:10:16,360
Speaker 2: No indeed, and something that will be monitoring closely as

195
00:10:16,360 --> 00:10:21,360
Speaker 2: those diplomatic efforts continue. For now. Stuart Ofvingston Wallace are

196
00:10:21,400 --> 00:10:23,280
Speaker 2: head of Middle Eastern North Africa. Thank you very much

197
00:10:23,280 --> 00:10:26,200
Speaker 2: for bringing us up to date on that story. Let's

198
00:10:26,200 --> 00:10:28,800
Speaker 2: turn out the latest earnings reports from the technology sector.

199
00:10:28,880 --> 00:10:32,120
Speaker 2: Shares in Facebook's parent company Meta slidden after I was

200
00:10:32,120 --> 00:10:34,400
Speaker 2: trading on Wall Street after its CFO said the revenue

201
00:10:34,400 --> 00:10:37,480
Speaker 2: outlook for next year was uncertain. Let's bring in Matt

202
00:10:37,520 --> 00:10:41,240
Speaker 2: Bloxham now from doing Burg Intelligence for more so with

203
00:10:41,440 --> 00:10:44,200
Speaker 2: Meta it was interesting because their results did actually beat

204
00:10:44,280 --> 00:10:47,440
Speaker 2: expectations for the latest quarter, but it was these comments

205
00:10:47,440 --> 00:10:49,240
Speaker 2: about the future that seems to have caught the attention

206
00:10:49,280 --> 00:10:49,880
Speaker 2: of investors.

207
00:10:50,000 --> 00:10:53,000
Speaker 8: Yeah, that's right. Q three revenues up twenty three and

208
00:10:53,040 --> 00:10:55,440
Speaker 8: a half percent, which was almost doubling on the previous

209
00:10:55,520 --> 00:10:58,800
Speaker 8: quarters growth, so seeing, Yeah, they make all the money

210
00:10:58,840 --> 00:11:01,480
Speaker 8: from advertising, so you know, brands really putting their money

211
00:11:01,480 --> 00:11:07,280
Speaker 8: to work. But yeah, not surprisingly, like many companies, doubts

212
00:11:07,320 --> 00:11:09,440
Speaker 8: about what's going to happen next year given everything going

213
00:11:09,440 --> 00:11:14,280
Speaker 8: on in the economy and macro geopolitical issues. So you know,

214
00:11:14,600 --> 00:11:17,240
Speaker 8: I think that spooked investors, particularly when you put it

215
00:11:17,280 --> 00:11:22,360
Speaker 8: together with the plan to continue invest aggressively in their

216
00:11:22,400 --> 00:11:29,880
Speaker 8: metaverse vision which generates no revenue really and huge losses

217
00:11:29,920 --> 00:11:33,040
Speaker 8: for them, and also planning to spend a lot more

218
00:11:33,040 --> 00:11:36,600
Speaker 8: on capital investment really to kind of fund technology in

219
00:11:36,640 --> 00:11:40,160
Speaker 8: their data centers, partly around the metaverse, but also around

220
00:11:40,240 --> 00:11:42,439
Speaker 8: the investment in AI. So I think that kind of

221
00:11:42,480 --> 00:11:45,680
Speaker 8: combination of perhaps a weaker than expected revenue outlook and

222
00:11:45,720 --> 00:11:49,280
Speaker 8: continue high spending on you know, kind of mid to

223
00:11:49,320 --> 00:11:52,920
Speaker 8: long term kind of moonshop projects really speak people.

224
00:11:53,400 --> 00:11:55,120
Speaker 2: I wonder how much we can tie that into what

225
00:11:55,160 --> 00:11:58,400
Speaker 2: we've heard from WPP, the advertising giant this morning as well.

226
00:11:58,600 --> 00:12:00,880
Speaker 2: I mean it shares for a they're done about two

227
00:12:00,920 --> 00:12:02,360
Speaker 2: point six percent now is a pairing some of the

228
00:12:02,400 --> 00:12:05,680
Speaker 2: earlier lasses as well. But they caught again their outlook

229
00:12:05,679 --> 00:12:06,720
Speaker 2: for revenue growth too.

230
00:12:07,200 --> 00:12:10,760
Speaker 8: Yeah, I think some of what's going on at WPP

231
00:12:11,120 --> 00:12:14,400
Speaker 8: as company specific, they've chosen a very different strategy to

232
00:12:14,480 --> 00:12:17,840
Speaker 8: some of their peers, and they're also actually relatively weak

233
00:12:17,920 --> 00:12:20,920
Speaker 8: in the US market, which continues to be the kind

234
00:12:20,960 --> 00:12:24,120
Speaker 8: of strongest market for kind of ad revenue, which kind

235
00:12:24,120 --> 00:12:27,360
Speaker 8: of what drove Meta in Q three. But you know,

236
00:12:27,400 --> 00:12:30,160
Speaker 8: there is a kind of broader set of concerns here

237
00:12:30,200 --> 00:12:33,640
Speaker 8: that you know, brand spending into twenty twenty four is

238
00:12:33,720 --> 00:12:36,800
Speaker 8: going to come under pressure because they're going to cut

239
00:12:36,840 --> 00:12:39,600
Speaker 8: back to the doubts about what's going on, and so

240
00:12:39,640 --> 00:12:41,800
Speaker 8: that that's kind of a general theme I think across

241
00:12:41,800 --> 00:12:43,880
Speaker 8: all these kind of ad related businesses.

242
00:12:44,160 --> 00:12:46,880
Speaker 2: Yeah, it was interesting who actually citing continue cut back

243
00:12:46,920 --> 00:12:48,800
Speaker 2: some technology clients as being part of the reason that

244
00:12:48,800 --> 00:12:51,439
Speaker 2: they led them to revise down their outlook too. If

245
00:12:51,440 --> 00:12:53,480
Speaker 2: we look ahead, then the next big name to report,

246
00:12:53,600 --> 00:12:55,480
Speaker 2: Amazon watching we've been watching out for with them.

247
00:12:55,559 --> 00:12:57,600
Speaker 8: Yeah, So I think the big focus there is on

248
00:12:57,679 --> 00:13:01,280
Speaker 8: the Amazon Web Services business, which is their market leading

249
00:13:01,520 --> 00:13:06,240
Speaker 8: cloud business. That's what generates all of the profit for Amazon.

250
00:13:06,559 --> 00:13:09,080
Speaker 8: So I think the expectations there for whether they can

251
00:13:09,160 --> 00:13:11,160
Speaker 8: kind of hold the kind of double digit growth this

252
00:13:11,280 --> 00:13:13,319
Speaker 8: or last quarter in that business, that would be a

253
00:13:13,400 --> 00:13:16,480
Speaker 8: positive sign if they can. Obviously they're benefiting from the

254
00:13:16,480 --> 00:13:19,880
Speaker 8: investments corporates and making in AI too, but obviously there'd

255
00:13:19,880 --> 00:13:23,040
Speaker 8: be spill across into their own fledgling advertising business which

256
00:13:23,080 --> 00:13:26,360
Speaker 8: is starting to encroach on the likes of Meta and Google,

257
00:13:27,080 --> 00:13:29,160
Speaker 8: and obviously what's going on in their kind of online

258
00:13:29,160 --> 00:13:32,560
Speaker 8: retail business and what they're saying about the health of

259
00:13:32,960 --> 00:13:37,240
Speaker 8: the global consumer into Q four and beyond, because that

260
00:13:37,280 --> 00:13:40,439
Speaker 8: again ties back to the fortunes for the likes of

261
00:13:40,600 --> 00:13:42,000
Speaker 8: WPP and Meta and Google.

262
00:13:42,160 --> 00:13:45,199
Speaker 2: Of course the cloud business. Interesting given this, Google's outlook

263
00:13:45,200 --> 00:13:48,079
Speaker 2: on their alphabet rather those outlook on their cloud business

264
00:13:48,200 --> 00:13:50,079
Speaker 2: wasn't all that optimistic.

265
00:13:49,880 --> 00:13:52,439
Speaker 8: That's right, And again I mean Amazon webs is quite

266
00:13:52,520 --> 00:13:54,920
Speaker 8: far and away the market leader and cloud, and I

267
00:13:54,960 --> 00:13:57,920
Speaker 8: think what we're seeing Google's that are distant number three,

268
00:13:58,920 --> 00:14:01,200
Speaker 8: and I think Google's strug a little bit to kind

269
00:14:01,200 --> 00:14:06,719
Speaker 8: of clawback market share from AWS and from Microsoft, which

270
00:14:06,800 --> 00:14:09,200
Speaker 8: is the kind of number two. So I think, yeah,

271
00:14:09,200 --> 00:14:11,840
Speaker 8: the AW business is a strong one. It's got really

272
00:14:11,880 --> 00:14:14,480
Speaker 8: good client relationships, and maybe there's a bit of a

273
00:14:14,520 --> 00:14:15,720
Speaker 8: disconnect there between the two.

274
00:14:17,960 --> 00:14:20,640
Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

275
00:14:20,680 --> 00:14:23,760
Speaker 2: stories making news from London to Wall Street and beyond.

276
00:14:23,840 --> 00:14:26,680
Speaker 2: Look for us on your podcast feed every morning on Apple,

277
00:14:26,800 --> 00:14:29,640
Speaker 2: Spotify and anywhere you've get your podcasts. You can also

278
00:14:29,680 --> 00:14:34,000
Speaker 2: listen live each morning on London Dab Radio, Bloomberg Business App.

279
00:14:33,840 --> 00:14:35,400
Speaker 1: And Bloomberg dot Com.

280
00:14:35,520 --> 00:14:37,960
Speaker 2: Our flagship New York station is also available on your

281
00:14:38,000 --> 00:14:42,280
Speaker 2: Amazon Alexa device. Just say Alexa play Bloomberg eleven thirty.

282
00:14:42,640 --> 00:14:45,480
Speaker 2: I'm Stephen Carroll. Join us again tomorrow for all the

283
00:14:45,520 --> 00:14:48,280
Speaker 2: news you need to start your day right here on

284
00:14:48,320 --> 00:14:55,320
Speaker 2: Bloomberg day Break Europe.