Speaker 1: Good morning.
Speaker 2: I'm Brian Curtis and I'm Doug Prisner. Here are the
Speaker 2: stories we're following today.
Speaker 1: Donald Trump's former chief of staff, Mark Meadows, has been
Speaker 1: granted immunity in the Special Council investigation the January sixth probe,
Speaker 1: and Baxter has that story and the rest of the
Speaker 1: global news from the nine to sixty news women in
Speaker 1: San Francisco.
Speaker 3: Ed, all right, thank you. Brian Meadows was Trump's final
Speaker 3: chief of staff and this means he will not be prosecuted,
Speaker 3: so to say. Before the grand jury, he repeatedly told
Speaker 3: Trump that the claims of election fraud were baseless. Meadows
Speaker 3: is a central player in the investigation by Smith investigating
Speaker 3: the claims that Trump and his allies sought to overturn
Speaker 3: the election. Now there is more Trump trial news. We'll
Speaker 3: get there in just a couple of minutes. The House
Speaker 3: Speakership has been thrown into more disarray. That was quick
Speaker 3: number three down and out. Tom Emmer has dropped his
Speaker 3: bid for speaker. Earlier in the day, he reportedly was
Speaker 3: twenty six votes short as well. Donald Trump came in
Speaker 3: in opposition former House Speaker. The former House Speaker says
Speaker 3: a core problem is not being addressed.
Speaker 2: If you don't deal with the consequences of the eight
Speaker 2: who worked with all the Democrats to put it in here,
Speaker 2: putting a new person up each time, we're going to
Speaker 2: be in the same place we were before.
Speaker 3: Yeah, that of course is Kevin McCarthy. So what you
Speaker 3: have within the party is the Trump supporters who will
Speaker 3: not vote for anybody who voted to certify the twenty
Speaker 3: twenty Electoral College and those who didn't. And Bloomberg's Wendy
Speaker 3: Benjaminson says, the effort to get the Democrats to get
Speaker 3: a speaker elected does not seem that will happen.
Speaker 4: What's in it for Democrats at this point to join
Speaker 4: the fight or to try to solve the fight for
Speaker 4: the Republicans, there's an old political ada as you know
Speaker 4: that when your enemy is drowning, throw them an anchor
Speaker 4: or just watch. And I think at this point, I mean,
Speaker 4: the scroll of concessions that Republicans would have to make
Speaker 4: to Democrats to get them on board right now is
Speaker 4: impossibly long.
Speaker 3: So the mess is still a mess you and Secretary
Speaker 3: General Antonio Geta says Israel needs to pull back from
Speaker 3: its bombing campaign. Says while Hamas attacks are unwarranted.
Speaker 5: It is important to also recognize the attacks by Amas
Speaker 5: did not happen in a vacuum. The Palestinian people have
Speaker 5: been subjected to fifty six years of suffocating occupation.
Speaker 3: Meanwhile, Israeli Ambassador to the UN, Gelard Ardon, says Gutaris needs
Speaker 3: to step.
Speaker 6: Down, mister Secretary General. The UN was established to prevent atrocities,
Speaker 6: to prevent such atrocities like the barbaric atrocities that Hamas committed,
Speaker 6: but the UN is failing.
Speaker 3: Israel's Foreign Minister Eli Cohen has counseled today's meetings with Guteras.
Speaker 3: While the air attacks persist, their efforts by the US
Speaker 3: and other Israeli allies to try everything before going in
Speaker 3: Bloomberg's Oliver Crook and Tel Aviv says today.
Speaker 7: Even dropping flyers on Gaza saying basically that if you
Speaker 7: have any information with phone numbers and the sort of
Speaker 7: thing about where hostages may be being held, offering money,
Speaker 7: saying that there will be safe passage and trying to
Speaker 7: ensure the safety of those who basically have any information
Speaker 7: on where these hostages are being held within Gaza.
Speaker 3: And the Pentagon is sending Israel the US Armies two
Speaker 3: batteries of iron dome radar command posts and interceptors to
Speaker 3: boost the nation's defense of Bloomberg. Source says it isn't
Speaker 3: known how soon or when at this point. Former Trump
Speaker 3: fixer Michael Cohen on the stand today and the New
Speaker 3: York civil suit against Trump valuations Cone, testifying that he
Speaker 3: followed Trump's orders and as did the rest of the
Speaker 3: team Trump now going into court the Rumen Wire.
Speaker 8: You know, fella serves a lot of time, Ali and
Speaker 8: where there still received did you see.
Speaker 3: It as you s and Cohen.
Speaker 9: This is not about Donald Trump versus Michael Cohen or
Speaker 9: Michael Cohen versus Donald Trump. This is about accountability.
Speaker 3: The judge will make the determination in the suit. Global
Speaker 3: News twenty four hours a day to and whenever you
Speaker 3: want it with Bloomberg News now in San Francisco. I'm
Speaker 3: Ed Baxter, and this is Bloomberg Brian.
Speaker 1: Ed, thank you. I'm Brian Curtis along with Doug Krisner,
Speaker 1: and we look now at some of the top business
Speaker 1: stories of the hour. Alphabet reported third quarter revenue and
Speaker 1: profit from its cloud business that missed analyst estimates, and
Speaker 1: this raises some concerns as investors were looking to the
Speaker 1: cloud to take the lead on company growth. Alphabet is
Speaker 1: the third largest player in the cloud market after Amazon
Speaker 1: and Microsoft. We hear now from Bloomberg's Man Deep sing.
Speaker 8: Cloud a little bit off a leaddown, but not surprise
Speaker 8: given you know everyone right now is talking about generative
Speaker 8: AI and they are kind of making their twenty twenty
Speaker 8: four plans. It hasn't really translated into cloud revenue.
Speaker 1: Man Deep Sing the cloud results marred and otherwise healthy
Speaker 1: report third quarter sales and profit beat analyst expectations. Alphabet
Speaker 1: shares it down around about six and a half percent
Speaker 1: in late trading.
Speaker 2: We also heard from Microsoft after the bell. The The
Speaker 2: company reported first quarter revenue rows thirteen percent, So we're
Speaker 2: talking top line now of fifty six point five billion dollars.
Speaker 2: That was above estimates and it represents Microsoft's strongest sales
Speaker 2: gain in six quarters. The company's new artificial intelligence products
Speaker 2: seem to be prompting corporate customers to spend Here is
Speaker 2: James Kakmak is tech analyst at Clockwise Capital.
Speaker 10: Yeah, I mean the big thing there is that you
Speaker 10: continue to see resilience on the cloud side while the
Speaker 10: legacy parts of their business anniversary, the tougher comps and
Speaker 10: come out stronger so and at the same time while
Speaker 10: being able to manage the bottom line. And obviously it's
Speaker 10: a Juggernaud it's ten percent of the queues and so
Speaker 10: it's a big way of important stock for the market.
Speaker 10: But the main thing is that growth, the growth sector
Speaker 10: factor continues to be where the money will likely continue
Speaker 10: to flow and coming out of the value area.
Speaker 2: The James kakmak there from Clockwise Capital Brian and right
Speaker 2: now I've got shares in Microsoft up three and a
Speaker 2: half percent in late trading.
Speaker 1: Yeah, actually did quite well in alfour hours and Goo
Speaker 1: in the other direction from Google.
Speaker 11: Well.
Speaker 1: Texas Instruments was also out with its report. It had
Speaker 1: a disappointing revenue forecast for the third quarter. The story
Speaker 1: from Bloomberg's Charlie Pellett.
Speaker 9: It indicates that demand remains sluggish for a broad range
Speaker 9: of electronic components, including industrial equipment. TI said revenue in
Speaker 9: the fourth quarter will be three point nine three to
Speaker 9: four point two seven billion dollars. Now that compares with
Speaker 9: an average analyst estimate of four point four to nine billion.
Speaker 9: The outlook boats poorly for a chip industry that is
Speaker 9: trying to recover from a punishing slowdown. Texas Instruments has
Speaker 9: the broadest list of customers in the semiconductor industry, making
Speaker 9: its forecasts a bell weather for demand across the economy.
Speaker 9: In New York, Charlie Pellett Bloomberg Radio, we go to Snap.
Speaker 1: We're seeing shares down four point eight percent in late trading.
Speaker 2: Pardon me, we go to Snap next. The company returned
Speaker 2: to revenue growth through the third quarter after two periods
Speaker 2: of declines. The company has spent much of the year
Speaker 2: working to revamp its ad business for its Snap Chap app.
Speaker 2: Already that app has more than five million subscribers. Separately,
Speaker 2: Snap said it's seen a large number of brand focused
Speaker 2: ad campaigns pause during the third quarter after the start
Speaker 2: of the Israel Hamas War, and it's now expecting this
Speaker 2: delay to continue into the fourth quarter. Right now, shares
Speaker 2: in Snap little changed in late US trading.
Speaker 11: Well.
Speaker 1: China is stepping up support for the economy with massive
Speaker 1: debt issuance. Bloomberg. Chuan Wong has the story from Hong Kong.
Speaker 12: China's legislature approved a plan to raise the fiscal deficit
Speaker 12: ratio for twenty twenty three to about three point eight
Speaker 12: percent of GDP. Shinhua said the plan would include issuing
Speaker 12: additional softeign debt worth one hundred and thirty seven billion
Speaker 12: dollars in the fourth quarter. The additional debt would be
Speaker 12: used to support disaster relief and construction. China has rarely
Speaker 12: adjust at his budget midyear. The last time was in
Speaker 12: two thousand and eight in the aftermath of a Sichuan earthquake.
Speaker 12: The latest budget revision shows that top leaders are concerned
Speaker 12: about China's economic outlook. Just yesterday, President Chi Ching Pain
Speaker 12: made what sought to be his first ever visit to
Speaker 12: the Central Bank since he became president. In Hong Kong,
Speaker 12: joined Wong Bloomberg Radio.
Speaker 1: Again Brian Curtis and Doug Krisner. And this is Bloomberg.
Speaker 1: Our guest is Eric Wasason Bloomberg, congressional reporter, who's right
Speaker 1: outside the room where they are strategizing on what comes next. Eric, Eric,
Speaker 1: thanks very much.
Speaker 8: So.
Speaker 1: This is really difficult for Republicans, but the host majority
Speaker 1: whip Tom Emmer down out of the race. It's the
Speaker 1: third speaker designy that has sort of tumbled out of this,
Speaker 1: I want to know procedurally, setting aside the embarrassment of
Speaker 1: all of this for the moment, procedurally, what comes next.
Speaker 11: Well, right now, they're meeting in what's called a candidates forum.
Speaker 11: According to the House Republican rules, every time they run
Speaker 11: for a speaker race, they've got to meet in the
Speaker 11: Candy It's former forum where they have a chance to
Speaker 11: give speeches and then also answer questions from the members.
Speaker 11: This happened last night where Emmer and others answered questions
Speaker 11: and then we're the votes to say and we're one.
Speaker 11: And then you know, after twenty six Republicans came out
Speaker 11: against Emma and Trump went on truth Social to really
Speaker 11: bash him. He dropped out. So now we're back to
Speaker 11: the candidate's forum. There's a bunch of candidates who have
Speaker 11: jumped in again, all from the South. I had noted,
Speaker 11: note all all men. And they are now, you know,
Speaker 11: presenting their case to the to the conference.
Speaker 2: The peers is though, according to their aides, Representative Kevin
Speaker 2: Hearn of Oklahoma and Mike Johnson of Louisiana are two
Speaker 2: of the prime candidates now seeking speakership. Is this likely
Speaker 2: what it's going to come down? To one of these
Speaker 2: two gentlemen.
Speaker 11: You know, they would say Johnson's probably the front runner.
Speaker 11: He got the most votes ninety seven votes when he
Speaker 11: was up up against Emmer. But you know, Herne is
Speaker 11: a strong candidate. He's the Republican Study Committee chairman. That's
Speaker 11: the largest caucus in their Publican party, you know, the
Speaker 11: conservative but not as conservative as the House Freedom caucuss
Speaker 11: which are really the ultra conservative. That group is running
Speaker 11: two people, Mark Green of Tennessee and also Byron Donalds
Speaker 11: of Florida who ran before to kind of split their
Speaker 11: vote a little bit. A couple of surprise entrances into
Speaker 11: the race. Chuck Fleischman of Tennessee. He's an appropriator Energy
Speaker 11: Spending Panel chairman. You know, he would sort of probably
Speaker 11: be representing the appropriations, more traditional establishment view, you know,
Speaker 11: he's jumped in. And then Roger Williams of Texas, also
Speaker 11: a very minor figure in the House, but someone that
Speaker 11: could be a small business committee person, you know, who
Speaker 11: could potentially again emerge as a consensus candidate. Everyone else deadlocks.
Speaker 1: How facetious is it to just say, why don't they
Speaker 1: just ask Donald Trump who he wants in there?
Speaker 11: You know, I think Trump will probably stay out of this.
Speaker 11: He had a personal animosity towards Ember because Emmer wouldn't
Speaker 11: vote to overturn the election. There were other, you know,
Speaker 11: spats over the years. Emmer also had voted to basically
Speaker 11: preserve a gay marriage right, something that conservatives didn't forgive
Speaker 11: him for. You know, I don't all the candidates that
Speaker 11: are in there now all voted with Trump to overturn
Speaker 11: the election, So I don't think he's really going to
Speaker 11: care too much between them or to weigh in. I mean,
Speaker 11: it could be wrong, but I don't see him generating
Speaker 11: at any of these cannies generate the same opposition that
Speaker 11: Emmer did in Trump world.
Speaker 2: One of the things that we're trying to understand visa
Speaker 2: VI the market is whether Treasury market in particular is
Speaker 2: concerned about moving up against a deadline for funding that
Speaker 2: would necessitate a government shutdown. Is that being talked about.
Speaker 2: Is is the GOP feeling any pressure to find a
Speaker 2: speaker quickly?
Speaker 11: Definitely the moderates, you know, we hear that them saying,
Speaker 11: you know, Kelly Armstrong and moderates from North Dakota that
Speaker 11: it's all about voting a shutdown. That's the real deadline here,
Speaker 11: you know, getting up against that November eighteenth deadline. When
Speaker 11: Congress has to act. It will act, but it will dither, procrastinate,
Speaker 11: infight ontil that very much. But you know this is
Speaker 11: this is a decision by committee. In some ways, that's
Speaker 11: how democraphy works. But this is particularly egregious and disorganized
Speaker 11: compared to my fifteen years old here watching this. You know,
Speaker 11: they really need to get this back together as a
Speaker 11: prelude to figuring out how to meet that deadline.
Speaker 1: How much power does the speaker ProTem Patrick McHenry have
Speaker 1: at the moment, You.
Speaker 11: Know, it's a matter of controversy. Kevin McCarthy, the former speaker,
Speaker 11: which is out here saying he already has the power,
Speaker 11: he should just start acting. The Kenry has interpreted that
Speaker 11: he doesn't. And interestingly, you know his actions so far,
Speaker 11: you know, the way he's acted has sort of set
Speaker 11: a precedent and if they try to force it, how
Speaker 11: he decides to set a precedent and the rules us
Speaker 11: to exactly have how much power he has, and they
Speaker 11: could simply elect him speaker ProTem. There has been that
Speaker 11: long history of temporary speakers, you know, for example, when
Speaker 11: Ingrish went out of town in nineteen ninety six to
Speaker 11: stave Murphy Brown and Hollywood, they had one you know,
Speaker 11: she signed a big telecom law. This has happened before,
Speaker 11: but he's been reluctant to embrace this idea and others
Speaker 11: felt like they need the you know, the lack of
Speaker 11: an empowered speaker ProTem to get this real speaker vote going.
Speaker 11: The longer this drags out, the more that becomes a possibility.
Speaker 2: Eric, what are we hearing from the Democrats this time?
Speaker 11: You know, Democrats have indicated, including Dean Phillips of Minnesota,
Speaker 11: that he might be willing to support or help out
Speaker 11: Tom Emmer. You know, if it exchange for some concessions
Speaker 11: like funding the government at at sort of negotiated levels.
Speaker 11: You know, that was met with some resistance from others
Speaker 11: and the Democrats they would be willing to do some deal.
Speaker 11: It's not quite power sharing, they realized that's probably unrealistic
Speaker 11: given the US system, but you know, more ability to
Speaker 11: bring their priorities to floor for up or down vote.
Speaker 11: But they have not been given any sort of deal
Speaker 11: on that, so they're sort of waiting saying, you know,
Speaker 11: we'll help out, but we need to get something for this,
Speaker 11: and it could come to that, but I think that's
Speaker 11: probably the third most likely option after the House Republicans
Speaker 11: finding it at this person or mckenry getting some kind
Speaker 11: of temporary power to move a spending bill.
Speaker 1: And and what are the sorts of deals that are
Speaker 1: happening on the Republican side, You know, I.
Speaker 11: Think it's really there's no deals right now. I mean
Speaker 11: there could be deals. If we see a nominee come
Speaker 11: out in voting as soon as tonight that doesn't have
Speaker 11: the full two seventeen. He could go the same route
Speaker 11: of trying to get sort of backroom deals that Jordan did.
Speaker 11: You know, Jim Jordan had more of a personal problem
Speaker 11: or legacy with some of the more mainstream Republicans, having
Speaker 11: spent years calling them Republicans and name only and pointing
Speaker 11: out in their flaws. Some of these other men in there,
Speaker 11: like Mike Johnson and Kevin Hurt don't really have that history.
Speaker 11: Someone describes them as, you know, the same menu but
Speaker 11: different later. They're not that antagonistic history, So they might
Speaker 11: be able to pull it off where Jordan didn't. But
Speaker 11: I see it's sort of potentially going down that road.
Speaker 11: Of the next couple of.
Speaker 2: Days very quickly, Eric, do you have a timeline for
Speaker 2: what the procedure will be going forward.
Speaker 11: Well, they're having this candidate for him now, and then
Speaker 11: after that. Some members are saying they're going to vote tonight.
Speaker 11: Maybe they're just too exhausted to do that. But we
Speaker 11: have seen before, especially it's very common on the Senate
Speaker 11: side that Congress will go into the midnight hours to
Speaker 11: resolve things, hoping that exhaustion weirds down people. So I'm
Speaker 11: not ruling that out. It could be a late night
Speaker 11: here on Capitol Hill.
Speaker 1: This is Bloomberg Daybreak Asia, your morning brief on the
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Speaker 2: And I'm Doug Krisner. Join us again tomorrow for all
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