WEBVTT - Alphabet, Microsoft Post Earnings, Xi Visits PBOC

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Brian Curtis and I'm Doug Prisner. Here are the

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<v Speaker 2>stories we're following today.

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<v Speaker 1>Donald Trump's former chief of staff, Mark Meadows, has been

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<v Speaker 1>granted immunity in the Special Council investigation the January sixth probe,

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<v Speaker 1>and Baxter has that story and the rest of the

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<v Speaker 1>global news from the nine to sixty news women in

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<v Speaker 1>San Francisco.

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<v Speaker 3>Ed, all right, thank you. Brian Meadows was Trump's final

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<v Speaker 3>chief of staff and this means he will not be prosecuted,

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<v Speaker 3>so to say. Before the grand jury, he repeatedly told

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<v Speaker 3>Trump that the claims of election fraud were baseless. Meadows

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<v Speaker 3>is a central player in the investigation by Smith investigating

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<v Speaker 3>the claims that Trump and his allies sought to overturn

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<v Speaker 3>the election. Now there is more Trump trial news. We'll

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<v Speaker 3>get there in just a couple of minutes. The House

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<v Speaker 3>Speakership has been thrown into more disarray. That was quick

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<v Speaker 3>number three down and out. Tom Emmer has dropped his

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<v Speaker 3>bid for speaker. Earlier in the day, he reportedly was

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<v Speaker 3>twenty six votes short as well. Donald Trump came in

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<v Speaker 3>in opposition former House Speaker. The former House Speaker says

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<v Speaker 3>a core problem is not being addressed.

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<v Speaker 2>If you don't deal with the consequences of the eight

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<v Speaker 2>who worked with all the Democrats to put it in here,

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<v Speaker 2>putting a new person up each time, we're going to

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<v Speaker 2>be in the same place we were before.

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<v Speaker 3>Yeah, that of course is Kevin McCarthy. So what you

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<v Speaker 3>have within the party is the Trump supporters who will

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<v Speaker 3>not vote for anybody who voted to certify the twenty

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<v Speaker 3>twenty Electoral College and those who didn't. And Bloomberg's Wendy

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<v Speaker 3>Benjaminson says, the effort to get the Democrats to get

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<v Speaker 3>a speaker elected does not seem that will happen.

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<v Speaker 4>What's in it for Democrats at this point to join

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<v Speaker 4>the fight or to try to solve the fight for

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<v Speaker 4>the Republicans, there's an old political ada as you know

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<v Speaker 4>that when your enemy is drowning, throw them an anchor

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<v Speaker 4>or just watch. And I think at this point, I mean,

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<v Speaker 4>the scroll of concessions that Republicans would have to make

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<v Speaker 4>to Democrats to get them on board right now is

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<v Speaker 4>impossibly long.

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<v Speaker 3>So the mess is still a mess you and Secretary

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<v Speaker 3>General Antonio Geta says Israel needs to pull back from

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<v Speaker 3>its bombing campaign. Says while Hamas attacks are unwarranted.

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<v Speaker 5>It is important to also recognize the attacks by Amas

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<v Speaker 5>did not happen in a vacuum. The Palestinian people have

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<v Speaker 5>been subjected to fifty six years of suffocating occupation.

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<v Speaker 3>Meanwhile, Israeli Ambassador to the UN, Gelard Ardon, says Gutaris needs

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<v Speaker 3>to step.

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<v Speaker 6>Down, mister Secretary General. The UN was established to prevent atrocities,

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<v Speaker 6>to prevent such atrocities like the barbaric atrocities that Hamas committed,

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<v Speaker 6>but the UN is failing.

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<v Speaker 3>Israel's Foreign Minister Eli Cohen has counseled today's meetings with Guteras.

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<v Speaker 3>While the air attacks persist, their efforts by the US

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<v Speaker 3>and other Israeli allies to try everything before going in

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<v Speaker 3>Bloomberg's Oliver Crook and Tel Aviv says today.

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<v Speaker 7>Even dropping flyers on Gaza saying basically that if you

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<v Speaker 7>have any information with phone numbers and the sort of

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<v Speaker 7>thing about where hostages may be being held, offering money,

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<v Speaker 7>saying that there will be safe passage and trying to

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<v Speaker 7>ensure the safety of those who basically have any information

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<v Speaker 7>on where these hostages are being held within Gaza.

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<v Speaker 3>And the Pentagon is sending Israel the US Armies two

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<v Speaker 3>batteries of iron dome radar command posts and interceptors to

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<v Speaker 3>boost the nation's defense of Bloomberg. Source says it isn't

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<v Speaker 3>known how soon or when at this point. Former Trump

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<v Speaker 3>fixer Michael Cohen on the stand today and the New

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<v Speaker 3>York civil suit against Trump valuations Cone, testifying that he

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<v Speaker 3>followed Trump's orders and as did the rest of the

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<v Speaker 3>team Trump now going into court the Rumen Wire.

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<v Speaker 8>You know, fella serves a lot of time, Ali and

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<v Speaker 8>where there still received did you see.

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<v Speaker 3>It as you s and Cohen.

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<v Speaker 9>This is not about Donald Trump versus Michael Cohen or

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<v Speaker 9>Michael Cohen versus Donald Trump. This is about accountability.

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<v Speaker 3>The judge will make the determination in the suit. Global

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<v Speaker 3>News twenty four hours a day to and whenever you

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<v Speaker 3>want it with Bloomberg News now in San Francisco. I'm

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<v Speaker 3>Ed Baxter, and this is Bloomberg Brian.

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<v Speaker 1>Ed, thank you. I'm Brian Curtis along with Doug Krisner,

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<v Speaker 1>and we look now at some of the top business

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<v Speaker 1>stories of the hour. Alphabet reported third quarter revenue and

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<v Speaker 1>profit from its cloud business that missed analyst estimates, and

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<v Speaker 1>this raises some concerns as investors were looking to the

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<v Speaker 1>cloud to take the lead on company growth. Alphabet is

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<v Speaker 1>the third largest player in the cloud market after Amazon

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<v Speaker 1>and Microsoft. We hear now from Bloomberg's Man Deep sing.

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<v Speaker 8>Cloud a little bit off a leaddown, but not surprise

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<v Speaker 8>given you know everyone right now is talking about generative

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<v Speaker 8>AI and they are kind of making their twenty twenty

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<v Speaker 8>four plans. It hasn't really translated into cloud revenue.

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<v Speaker 1>Man Deep Sing the cloud results marred and otherwise healthy

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<v Speaker 1>report third quarter sales and profit beat analyst expectations. Alphabet

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<v Speaker 1>shares it down around about six and a half percent

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<v Speaker 1>in late trading.

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<v Speaker 2>We also heard from Microsoft after the bell. The The

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<v Speaker 2>company reported first quarter revenue rows thirteen percent, So we're

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<v Speaker 2>talking top line now of fifty six point five billion dollars.

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<v Speaker 2>That was above estimates and it represents Microsoft's strongest sales

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<v Speaker 2>gain in six quarters. The company's new artificial intelligence products

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<v Speaker 2>seem to be prompting corporate customers to spend Here is

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<v Speaker 2>James Kakmak is tech analyst at Clockwise Capital.

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<v Speaker 10>Yeah, I mean the big thing there is that you

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<v Speaker 10>continue to see resilience on the cloud side while the

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<v Speaker 10>legacy parts of their business anniversary, the tougher comps and

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<v Speaker 10>come out stronger so and at the same time while

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<v Speaker 10>being able to manage the bottom line. And obviously it's

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<v Speaker 10>a Juggernaud it's ten percent of the queues and so

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<v Speaker 10>it's a big way of important stock for the market.

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<v Speaker 10>But the main thing is that growth, the growth sector

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<v Speaker 10>factor continues to be where the money will likely continue

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<v Speaker 10>to flow and coming out of the value area.

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<v Speaker 2>The James kakmak there from Clockwise Capital Brian and right

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<v Speaker 2>now I've got shares in Microsoft up three and a

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<v Speaker 2>half percent in late trading.

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<v Speaker 1>Yeah, actually did quite well in alfour hours and Goo

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<v Speaker 1>in the other direction from Google.

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<v Speaker 11>Well.

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<v Speaker 1>Texas Instruments was also out with its report. It had

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<v Speaker 1>a disappointing revenue forecast for the third quarter. The story

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<v Speaker 1>from Bloomberg's Charlie Pellett.

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<v Speaker 9>It indicates that demand remains sluggish for a broad range

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<v Speaker 9>of electronic components, including industrial equipment. TI said revenue in

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<v Speaker 9>the fourth quarter will be three point nine three to

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<v Speaker 9>four point two seven billion dollars. Now that compares with

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<v Speaker 9>an average analyst estimate of four point four to nine billion.

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<v Speaker 9>The outlook boats poorly for a chip industry that is

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<v Speaker 9>trying to recover from a punishing slowdown. Texas Instruments has

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<v Speaker 9>the broadest list of customers in the semiconductor industry, making

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<v Speaker 9>its forecasts a bell weather for demand across the economy.

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<v Speaker 9>In New York, Charlie Pellett Bloomberg Radio, we go to Snap.

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<v Speaker 1>We're seeing shares down four point eight percent in late trading.

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<v Speaker 2>Pardon me, we go to Snap next. The company returned

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<v Speaker 2>to revenue growth through the third quarter after two periods

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<v Speaker 2>of declines. The company has spent much of the year

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<v Speaker 2>working to revamp its ad business for its Snap Chap app.

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<v Speaker 2>Already that app has more than five million subscribers. Separately,

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<v Speaker 2>Snap said it's seen a large number of brand focused

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<v Speaker 2>ad campaigns pause during the third quarter after the start

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<v Speaker 2>of the Israel Hamas War, and it's now expecting this

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<v Speaker 2>delay to continue into the fourth quarter. Right now, shares

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<v Speaker 2>in Snap little changed in late US trading.

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<v Speaker 11>Well.

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<v Speaker 1>China is stepping up support for the economy with massive

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<v Speaker 1>debt issuance. Bloomberg. Chuan Wong has the story from Hong Kong.

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<v Speaker 12>China's legislature approved a plan to raise the fiscal deficit

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<v Speaker 12>ratio for twenty twenty three to about three point eight

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<v Speaker 12>percent of GDP. Shinhua said the plan would include issuing

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<v Speaker 12>additional softeign debt worth one hundred and thirty seven billion

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<v Speaker 12>dollars in the fourth quarter. The additional debt would be

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<v Speaker 12>used to support disaster relief and construction. China has rarely

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<v Speaker 12>adjust at his budget midyear. The last time was in

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<v Speaker 12>two thousand and eight in the aftermath of a Sichuan earthquake.

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<v Speaker 12>The latest budget revision shows that top leaders are concerned

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<v Speaker 12>about China's economic outlook. Just yesterday, President Chi Ching Pain

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<v Speaker 12>made what sought to be his first ever visit to

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<v Speaker 12>the Central Bank since he became president. In Hong Kong,

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<v Speaker 12>joined Wong Bloomberg Radio.

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<v Speaker 1>Again Brian Curtis and Doug Krisner. And this is Bloomberg.

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<v Speaker 1>Our guest is Eric Wasason Bloomberg, congressional reporter, who's right

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<v Speaker 1>outside the room where they are strategizing on what comes next. Eric, Eric,

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<v Speaker 1>thanks very much.

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<v Speaker 8>So.

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<v Speaker 1>This is really difficult for Republicans, but the host majority

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<v Speaker 1>whip Tom Emmer down out of the race. It's the

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<v Speaker 1>third speaker designy that has sort of tumbled out of this,

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<v Speaker 1>I want to know procedurally, setting aside the embarrassment of

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<v Speaker 1>all of this for the moment, procedurally, what comes next.

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<v Speaker 11>Well, right now, they're meeting in what's called a candidates forum.

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<v Speaker 11>According to the House Republican rules, every time they run

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<v Speaker 11>for a speaker race, they've got to meet in the

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<v Speaker 11>Candy It's former forum where they have a chance to

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<v Speaker 11>give speeches and then also answer questions from the members.

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<v Speaker 11>This happened last night where Emmer and others answered questions

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<v Speaker 11>and then we're the votes to say and we're one.

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<v Speaker 11>And then you know, after twenty six Republicans came out

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<v Speaker 11>against Emma and Trump went on truth Social to really

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<v Speaker 11>bash him. He dropped out. So now we're back to

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<v Speaker 11>the candidate's forum. There's a bunch of candidates who have

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<v Speaker 11>jumped in again, all from the South. I had noted,

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<v Speaker 11>note all all men. And they are now, you know,

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<v Speaker 11>presenting their case to the to the conference.

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<v Speaker 2>The peers is though, according to their aides, Representative Kevin

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<v Speaker 2>Hearn of Oklahoma and Mike Johnson of Louisiana are two

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<v Speaker 2>of the prime candidates now seeking speakership. Is this likely

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<v Speaker 2>what it's going to come down? To one of these

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<v Speaker 2>two gentlemen.

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<v Speaker 11>You know, they would say Johnson's probably the front runner.

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<v Speaker 11>He got the most votes ninety seven votes when he

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<v Speaker 11>was up up against Emmer. But you know, Herne is

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<v Speaker 11>a strong candidate. He's the Republican Study Committee chairman. That's

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<v Speaker 11>the largest caucus in their Publican party, you know, the

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<v Speaker 11>conservative but not as conservative as the House Freedom caucuss

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<v Speaker 11>which are really the ultra conservative. That group is running

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<v Speaker 11>two people, Mark Green of Tennessee and also Byron Donalds

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<v Speaker 11>of Florida who ran before to kind of split their

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<v Speaker 11>vote a little bit. A couple of surprise entrances into

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<v Speaker 11>the race. Chuck Fleischman of Tennessee. He's an appropriator Energy

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<v Speaker 11>Spending Panel chairman. You know, he would sort of probably

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<v Speaker 11>be representing the appropriations, more traditional establishment view, you know,

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<v Speaker 11>he's jumped in. And then Roger Williams of Texas, also

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<v Speaker 11>a very minor figure in the House, but someone that

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<v Speaker 11>could be a small business committee person, you know, who

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<v Speaker 11>could potentially again emerge as a consensus candidate. Everyone else deadlocks.

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<v Speaker 1>How facetious is it to just say, why don't they

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<v Speaker 1>just ask Donald Trump who he wants in there?

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<v Speaker 11>You know, I think Trump will probably stay out of this.

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<v Speaker 11>He had a personal animosity towards Ember because Emmer wouldn't

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<v Speaker 11>vote to overturn the election. There were other, you know,

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<v Speaker 11>spats over the years. Emmer also had voted to basically

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<v Speaker 11>preserve a gay marriage right, something that conservatives didn't forgive

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<v Speaker 11>him for. You know, I don't all the candidates that

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<v Speaker 11>are in there now all voted with Trump to overturn

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<v Speaker 11>the election, So I don't think he's really going to

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<v Speaker 11>care too much between them or to weigh in. I mean,

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<v Speaker 11>it could be wrong, but I don't see him generating

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<v Speaker 11>at any of these cannies generate the same opposition that

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<v Speaker 11>Emmer did in Trump world.

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<v Speaker 2>One of the things that we're trying to understand visa

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<v Speaker 2>VI the market is whether Treasury market in particular is

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<v Speaker 2>concerned about moving up against a deadline for funding that

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<v Speaker 2>would necessitate a government shutdown. Is that being talked about.

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<v Speaker 2>Is is the GOP feeling any pressure to find a

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<v Speaker 2>speaker quickly?

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<v Speaker 11>Definitely the moderates, you know, we hear that them saying,

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<v Speaker 11>you know, Kelly Armstrong and moderates from North Dakota that

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<v Speaker 11>it's all about voting a shutdown. That's the real deadline here,

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<v Speaker 11>you know, getting up against that November eighteenth deadline. When

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<v Speaker 11>Congress has to act. It will act, but it will dither, procrastinate,

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<v Speaker 11>infight ontil that very much. But you know this is

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<v Speaker 11>this is a decision by committee. In some ways, that's

0:12:03.440 --> 0:12:06.800
<v Speaker 11>how democraphy works. But this is particularly egregious and disorganized

0:12:06.840 --> 0:12:10.160
<v Speaker 11>compared to my fifteen years old here watching this. You know,

0:12:10.200 --> 0:12:11.680
<v Speaker 11>they really need to get this back together as a

0:12:11.679 --> 0:12:14.319
<v Speaker 11>prelude to figuring out how to meet that deadline.

0:12:15.679 --> 0:12:19.200
<v Speaker 1>How much power does the speaker ProTem Patrick McHenry have

0:12:19.320 --> 0:12:20.560
<v Speaker 1>at the moment, You.

0:12:20.559 --> 0:12:23.360
<v Speaker 11>Know, it's a matter of controversy. Kevin McCarthy, the former speaker,

0:12:23.360 --> 0:12:25.040
<v Speaker 11>which is out here saying he already has the power,

0:12:25.040 --> 0:12:27.520
<v Speaker 11>he should just start acting. The Kenry has interpreted that

0:12:27.559 --> 0:12:31.240
<v Speaker 11>he doesn't. And interestingly, you know his actions so far,

0:12:32.120 --> 0:12:34.800
<v Speaker 11>you know, the way he's acted has sort of set

0:12:34.840 --> 0:12:36.959
<v Speaker 11>a precedent and if they try to force it, how

0:12:36.960 --> 0:12:38.880
<v Speaker 11>he decides to set a precedent and the rules us

0:12:38.880 --> 0:12:41.480
<v Speaker 11>to exactly have how much power he has, and they

0:12:41.480 --> 0:12:44.600
<v Speaker 11>could simply elect him speaker ProTem. There has been that

0:12:44.760 --> 0:12:49.360
<v Speaker 11>long history of temporary speakers, you know, for example, when

0:12:49.679 --> 0:12:51.400
<v Speaker 11>Ingrish went out of town in nineteen ninety six to

0:12:51.440 --> 0:12:54.080
<v Speaker 11>stave Murphy Brown and Hollywood, they had one you know,

0:12:54.120 --> 0:12:57.040
<v Speaker 11>she signed a big telecom law. This has happened before,

0:12:57.679 --> 0:13:00.760
<v Speaker 11>but he's been reluctant to embrace this idea and others

0:13:00.760 --> 0:13:02.880
<v Speaker 11>felt like they need the you know, the lack of

0:13:03.559 --> 0:13:07.000
<v Speaker 11>an empowered speaker ProTem to get this real speaker vote going.

0:13:07.240 --> 0:13:09.880
<v Speaker 11>The longer this drags out, the more that becomes a possibility.

0:13:10.120 --> 0:13:12.559
<v Speaker 2>Eric, what are we hearing from the Democrats this time?

0:13:13.520 --> 0:13:17.120
<v Speaker 11>You know, Democrats have indicated, including Dean Phillips of Minnesota,

0:13:17.160 --> 0:13:19.560
<v Speaker 11>that he might be willing to support or help out

0:13:19.600 --> 0:13:22.679
<v Speaker 11>Tom Emmer. You know, if it exchange for some concessions

0:13:22.720 --> 0:13:25.439
<v Speaker 11>like funding the government at at sort of negotiated levels.

0:13:25.800 --> 0:13:28.320
<v Speaker 11>You know, that was met with some resistance from others

0:13:28.360 --> 0:13:30.920
<v Speaker 11>and the Democrats they would be willing to do some deal.

0:13:31.080 --> 0:13:33.839
<v Speaker 11>It's not quite power sharing, they realized that's probably unrealistic

0:13:33.840 --> 0:13:36.400
<v Speaker 11>given the US system, but you know, more ability to

0:13:36.440 --> 0:13:38.720
<v Speaker 11>bring their priorities to floor for up or down vote.

0:13:39.000 --> 0:13:40.640
<v Speaker 11>But they have not been given any sort of deal

0:13:40.720 --> 0:13:42.720
<v Speaker 11>on that, so they're sort of waiting saying, you know,

0:13:42.720 --> 0:13:44.720
<v Speaker 11>we'll help out, but we need to get something for this,

0:13:45.280 --> 0:13:46.800
<v Speaker 11>and it could come to that, but I think that's

0:13:46.800 --> 0:13:50.000
<v Speaker 11>probably the third most likely option after the House Republicans

0:13:50.000 --> 0:13:52.559
<v Speaker 11>finding it at this person or mckenry getting some kind

0:13:52.559 --> 0:13:54.400
<v Speaker 11>of temporary power to move a spending bill.

0:13:55.280 --> 0:13:57.880
<v Speaker 1>And and what are the sorts of deals that are

0:13:57.880 --> 0:14:00.959
<v Speaker 1>happening on the Republican side, You know, I.

0:14:00.880 --> 0:14:03.040
<v Speaker 11>Think it's really there's no deals right now. I mean

0:14:03.080 --> 0:14:06.080
<v Speaker 11>there could be deals. If we see a nominee come

0:14:06.120 --> 0:14:09.440
<v Speaker 11>out in voting as soon as tonight that doesn't have

0:14:09.480 --> 0:14:11.680
<v Speaker 11>the full two seventeen. He could go the same route

0:14:11.679 --> 0:14:15.200
<v Speaker 11>of trying to get sort of backroom deals that Jordan did.

0:14:15.880 --> 0:14:18.920
<v Speaker 11>You know, Jim Jordan had more of a personal problem

0:14:19.080 --> 0:14:21.800
<v Speaker 11>or legacy with some of the more mainstream Republicans, having

0:14:21.800 --> 0:14:24.600
<v Speaker 11>spent years calling them Republicans and name only and pointing

0:14:24.600 --> 0:14:27.520
<v Speaker 11>out in their flaws. Some of these other men in there,

0:14:27.560 --> 0:14:30.880
<v Speaker 11>like Mike Johnson and Kevin Hurt don't really have that history.

0:14:31.160 --> 0:14:33.600
<v Speaker 11>Someone describes them as, you know, the same menu but

0:14:33.640 --> 0:14:37.040
<v Speaker 11>different later. They're not that antagonistic history, So they might

0:14:37.040 --> 0:14:39.000
<v Speaker 11>be able to pull it off where Jordan didn't. But

0:14:39.040 --> 0:14:40.960
<v Speaker 11>I see it's sort of potentially going down that road.

0:14:40.960 --> 0:14:41.560
<v Speaker 11>Of the next couple of.

0:14:41.560 --> 0:14:44.080
<v Speaker 2>Days very quickly, Eric, do you have a timeline for

0:14:44.160 --> 0:14:46.120
<v Speaker 2>what the procedure will be going forward.

0:14:46.960 --> 0:14:48.840
<v Speaker 11>Well, they're having this candidate for him now, and then

0:14:48.880 --> 0:14:51.760
<v Speaker 11>after that. Some members are saying they're going to vote tonight.

0:14:52.280 --> 0:14:55.160
<v Speaker 11>Maybe they're just too exhausted to do that. But we

0:14:55.200 --> 0:14:57.760
<v Speaker 11>have seen before, especially it's very common on the Senate

0:14:57.800 --> 0:15:00.560
<v Speaker 11>side that Congress will go into the midnight hours to

0:15:00.640 --> 0:15:04.160
<v Speaker 11>resolve things, hoping that exhaustion weirds down people. So I'm

0:15:04.160 --> 0:15:05.640
<v Speaker 11>not ruling that out. It could be a late night

0:15:05.680 --> 0:15:06.560
<v Speaker 11>here on Capitol Hill.

0:15:07.600 --> 0:15:10.480
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