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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today, Aaron.

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Speaker 3: We end the week with a market rally around the world.

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Speaker 3: US futures are building on yesterday's tech led gains on

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Speaker 3: Wall Street. The stocks Europe six hundreds hit an all

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Speaker 3: time high, but the real action was in Asia, where

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Speaker 3: the Cospy Index in South Korea rebounded from a three

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Speaker 3: day sell off to surge eighteen percent. We get more

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Speaker 3: from Bloomberg Market's reporter Mark Cudmore in Singapore.

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Speaker 4: It's insane, isn't it.

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Speaker 5: On Wednesday I was down in twenty one point three

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Speaker 5: percent for the week, then an out of twenty six

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Speaker 5: percent rally between Wednesday's lows and Fridays highs. This is

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Speaker 5: one of the world's largest stock markets. Through the GESC

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Speaker 5: we saw some wild moves. The dot com now we

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Speaker 5: saw some wild moves. This is pretty insane for one

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Speaker 5: of the world's largest stock markets.

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Speaker 3: In Bloomberg's Mark Cudmore notes, s K Heinix and Samsung

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Speaker 3: Electronics each rose more than twenty two percent.

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Speaker 2: Well, Nathan, The gaines in Korea follow up big rally

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Speaker 2: for chip stocks here in the US. The Philadelphia Semiconductor

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Speaker 2: Index known as the Socks, climb eight point two percent yesterday,

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Speaker 2: and Microsoft sword sixteen percent for its best one day

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Speaker 2: performance in eighteen years following strong earnings.

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Speaker 4: And the high tech earnings continue.

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Speaker 3: Karen with Amazon, those chairs are up nearly twelve percent

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Speaker 3: in the pre market. The company reported cloud computing revenue

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Speaker 3: accelerated for a fifth straight quarter. Amazon's e commerce operations

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Speaker 3: still generates the biggest share of its revenue, but online

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Speaker 3: sales gained fifteen percent to more than seventy billion dollars.

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Speaker 3: Putum Goyle covers Amazon for Bloomberg Intelligence.

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Speaker 6: It looks like broad based strength across the board. The

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Speaker 6: retail numbers were particularly good, and that was expected because

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Speaker 6: we had the prime day shift moving in from three

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Speaker 6: Q to two Q. So overall, really nice numbers here

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Speaker 6: on the retail side. Consumers came to Amazon to shop

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Speaker 6: prime day sales, and the shift to online just continues

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Speaker 6: to appear more and more apparent as we moved through

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Speaker 6: a consumer spending cycle.

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Speaker 3: And Punumgoil of Bloomberg Intelligence says Amazon raised its projection

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Speaker 3: for twenty twenty six capital expenditures to two hundred and

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Speaker 3: twenty billion dollars from a previous estimate of two hundred billion.

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Speaker 4: Most of that Amazon says it's going to AI.

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Speaker 7: Well.

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Speaker 2: Amazon is surging. Nathan investors are taking a big bite

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Speaker 2: out of Apple shares this morning. That stock is down

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Speaker 2: more than seven percent. The iPhone maker delivered a disappointing

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Speaker 2: sales forecast. Apple's been struggling with shortages of computer processors

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Speaker 2: and fast rising memory costs. As for the previous quarter,

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Speaker 2: sales topped estimates, climbing sixteen percent to more than one

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Speaker 2: hundred nine billion dollars. Mark German covers Apple for Bloomberg.

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Speaker 8: My take is that the iPhone number looks great. My

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Speaker 8: take is that the Mac number looks amazing. My take

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Speaker 8: is at services a little soft, and the China number

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Speaker 8: missed the estimate we have here on the Bloomberg terminal.

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Speaker 8: But at the same time that is, you know, pretty

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Speaker 8: nice growth on an annual basis where they were sort

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Speaker 8: of I guess in the toilet in China a couple

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Speaker 8: of years ago and last year, but they've totally rebounded there.

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Speaker 2: Bloomberg's Mark Erman says the quarter served as a swan

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Speaker 2: song of sorts for Tim Cook, apples leader since twenty eleven.

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Speaker 2: He's handing the reins to hardware headed John Turnis. On

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Speaker 2: September first, we turned to the economy. Now, a raft

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Speaker 2: of US economic data did little to dispel investor anxiety

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Speaker 2: that is keeping yields near multi year highs, and Bloomberg's

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Speaker 2: John Tucker is here with Moore. John.

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Speaker 4: Good morning, Yeah, Good morning, Karen.

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Speaker 9: Yeah.

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Speaker 10: The data included the Fed's preferred inflation measure, which eased,

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Speaker 10: but that's pretty much in the rear view mirror. It

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Speaker 10: was driven by a temporary drop in oil and gasoline

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Speaker 10: that's already reversed. Now the focus for the treasury market

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Speaker 10: remains the Fed's decision to hold rate steady despite stubborn inflation.

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Speaker 10: The yield on the thirty year bond rose as much

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Speaker 10: as four basis points yesterday before pairing its increase right

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Speaker 10: now hovering at five point one eight percent. The yield

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Speaker 10: on the ten yured Treasury note, which pretty much underpins

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Speaker 10: the cost of borrowing from mortgages to business loans, that

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Speaker 10: remains close to the highest level since President Trump returned

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Speaker 10: to the White House. Well, the average thirty year mortgage

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Speaker 10: rate that climbed to the highest and almost a year meantime,

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Speaker 10: that fits two percent inflation target that has now been

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Speaker 10: exceeded each month since March of twenty twenty one, New

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Speaker 10: York on John Tucker Bloomberg Radio.

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Speaker 4: Okay, John, thank you.

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Speaker 3: In Asia, the Bank of Japan held its policy rates

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Speaker 3: steady after officials took the rare step of wading back

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Speaker 3: into the currency market just hours earlier.

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Speaker 4: With apparent help from the US.

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Speaker 3: Treasury Secretary Scott Bessen told Fox Business, the yen should

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Speaker 3: strengthen from current levels.

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Speaker 11: Japanese yen seems very undervalue to me. Currency is very cheap.

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Speaker 11: The economy's doing well. The Prime Minister is very popular

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Speaker 11: and enacting very strong policies, and I think we're going

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Speaker 11: to see the fundamentals come through and at a point

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Speaker 11: that the market will realize the n is undervalued and

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Speaker 11: it should strengthen.

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Speaker 3: Treasury Secretary Scott Bessen and the end gained as much

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Speaker 3: as three point three percent against the dollar in New

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Speaker 3: York trading yesterday. Those gains continue this morning, with the

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Speaker 3: en up about a half percent at one fifty eight

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Speaker 3: seventy four against the dollar.

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Speaker 2: Now, Nathan, let's get to the Middle East and word

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Speaker 2: of a potential breakthrough in Gaza. President Trump announced on

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Speaker 2: social media that the US led Border Peace has reached

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Speaker 2: an agreement for Hamas to disarm, but Bloomberg Middle East

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Speaker 2: correspondent Abi abu Omar reports there are still questions surrounding

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Speaker 2: this deal.

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Speaker 12: We heard from Hamas officials overnight that essentially they will

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Speaker 12: not disarm until Israel pulls out. We don't have a

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Speaker 12: lot of clarity from the Israeli side on exactly how

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Speaker 12: possible that is. History suggests to us if there is

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Speaker 12: evidence that Israel is not going to be very prone

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Speaker 12: to pulling out before Hamas actually disarms its weapons.

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Speaker 2: And Bloomberg's Abira A blo Omar reports Israel has yet

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Speaker 2: to comment on the agreement. US and Board of Peace

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Speaker 2: officials say that details still have to be refined over

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Speaker 2: the next couple of weeks.

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Speaker 4: They laid out a timeline.

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Speaker 2: Of two hundred to three hundred and fifty days to

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Speaker 2: implement the agreement, but they say that could change well.

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Speaker 3: Meanwhile, inter Ron Karen, President Trump is facing a conundrum

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Speaker 3: whether to escalate that conflict or focus on restocking the

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Speaker 3: US military's depleted munitions. That choice came into focus this

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Speaker 3: week as the US hit dozens of targets tied to

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Speaker 3: Iron's Islamic Revolutionary Guard Corps. The White House is not

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Speaker 3: saying whether this points to a return to full scale war,

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Speaker 3: but crude oil is falling.

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Speaker 4: This morning, at the end of a volatile week.

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Speaker 3: Stephen Stepchinsky covers the energy markets for Bloomberg.

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Speaker 13: We're actually seeing a little bit more traffic and actually

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Speaker 13: indications that the shuttle service, so the uae Adnock had

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Speaker 13: been able to send oil out of the Persian golf

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Speaker 13: through the Straight of Horn, moves into the Gulf of

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Speaker 13: Oman and then basically do a ship to ship transfer

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Speaker 13: where they transfer of oil onto another vessel. They've been

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Speaker 13: picking that back up after several week pause when tension

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Speaker 13: in the region kind of escalated at the being of July.

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Speaker 3: In Bloomberg, Stephen Stepchinski reports oil is still on track

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Speaker 3: for its biggest monthly gain since March. With checking prices

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Speaker 3: this morning, Brent is lower by almost a half percent

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Speaker 3: at eighty eight dollar.

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Speaker 4: There's sixty three cents per barrel.

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Speaker 3: West Texas Intermediate's down nine tens percent at eighty two

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Speaker 3: eighty seven.

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Speaker 2: Nathan Anthropek says it's AI models hacked into three organizations

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Speaker 2: during testing. This comes just days after OpenAI said it's

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Speaker 2: AI models went rogue and hacked into another company, and

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Speaker 2: Thropics says it discovered the incidents after reviewing over one

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Speaker 2: hundred and forty one thousand evaluation runs. The incidents highlight

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Speaker 2: the vulnerabilities in AI security and controls and raise questions

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Speaker 2: over how AI can be used safely.

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Speaker 4: We have this programming note, Karen.

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Speaker 3: Bloomberg Radio is introducing a new feature exclusively for Bloomberg

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Speaker 3: dot com subscribers and terminal clients. You can help shape

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Speaker 3: our conversations by submitting questions for our analysts and experts

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Speaker 3: to answer live on air.

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Speaker 4: Just go to Bloomberg dot com slash radio.

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Speaker 3: For subscribers to send in questions and you may just

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Speaker 3: hear them asked on air. That's Bloomberg dot Com slash

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Speaker 3: ask Radio.

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Speaker 2: Time now for a look at some of the other

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Speaker 2: story making news in New York and around the world.

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Speaker 2: And for that we're joined by Bloomberg's Michael Barr. Michael,

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Speaker 2: Good Morning, Good morning, Karen.

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Speaker 9: President Trump said he is open to the possibility of

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Speaker 9: temporarily withdrawing Todd Blanche's nomination as Attorney General amid opposition

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Speaker 9: from two Republican Senators, John Cornyn and Tom Tillis have

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Speaker 9: sought additional assurances in writing that the DOJ will not

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Speaker 9: revive an anti weaponization fund created to resolve the President's

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Speaker 9: lawsuit against the IRS.

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Speaker 14: Senator Tillis, somebody's dollars all to not do what Blanche

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Speaker 14: said they were going to do. Whoever that person is,

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Speaker 14: is giving the president bad advice. The only reason why

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Speaker 14: we wouldn't move forward with this language is because that

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Speaker 14: same advisor wants to bring it back to life at

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Speaker 14: some point.

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Speaker 9: Senators Tillis and Cornyn met with Blanche last night. Fifteen

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Speaker 9: years in prison is the sentence a Georgia judge handed

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Speaker 9: down to Colin Gray, the father of the Appalachi High

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Speaker 9: School shooter. Earlier this week, Colt Gray was sentenced to

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Speaker 9: life without parole for the Twin four mass shooting that

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Speaker 9: left four dead. Colin Gray was sentenced of second degree

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Speaker 9: murder for giving his son the gun that was used

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Speaker 9: in the shooting. Barrow County District Attorney Brad Smith.

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Speaker 7: I own guns. I'm not against people owning guns. I

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Speaker 7: own them myself. But when you see someone in distress,

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Speaker 7: please take away their access to guns.

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Speaker 9: Da Brad Smith. The death Troll has climbed to at

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Speaker 9: least thirty four from Tuesdays seven point one magnitude earthquake

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Speaker 9: in southwestern Japan. It caused an explosion at a mall

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Speaker 9: and flattened homes. Global News twenty four hours a day

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Speaker 9: and whenever you want it with the Bloomberg News. Now,

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Speaker 9: I'm Michael Barr, and this is Bloomberg Karen.

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Speaker 4: Thanks Michael.

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Speaker 2: A time now for our Bloomberg Sports updat, and for

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Speaker 2: that we bring in John stash Hour.

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Speaker 4: Thanks Karon.

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Speaker 15: NFL teams locking up veteran players Philadelphia with defensive tackle

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Speaker 15: Jalen Carter Cleveland and quarterback Denzel Ward. And now the

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Speaker 15: New Orleans Saints have a new deal with Whiteout Chrys o'

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Speaker 15: lobby four years, one hundred and thirty two dollars. FIFA,

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Speaker 15: the soccer governing body, is looking to sell steaks to

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Speaker 15: private investors. UEFA, which runs European soccer, not happy, saying

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Speaker 15: the World Cup is not for sale. They emerged from

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Speaker 15: a meeting saying their fifty five nations will boycott the

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Speaker 15: twenty thirty World Cup. That's to Bloomberg Sports Update.

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Speaker 4: Stay with us. More from Bloomberg Daybreak coming up after this.

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Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business app.

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Speaker 4: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.

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Speaker 3: We are coming to the end of a trading week

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Speaker 3: of the big rebound in global chip stocks and two

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Speaker 3: of the biggest names in megacap tech moving in two

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Speaker 3: different directions in after earnings. Joining us this morning is

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Speaker 3: Dan Ives, partner and senior managing director at Yorkville Ives.

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Speaker 3: Great to speak with you this morning, Dan, As, we're

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Speaker 3: coming off a huge surge in South Korea's Cospi index

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Speaker 3: after three straight days of declines, an eighteen percent jump.

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Speaker 3: What do you make of the move in chips this week?

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Speaker 3: Good morning, agreed to be here.

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Speaker 16: Look, I mean, you're just seeing sort of you know,

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Speaker 16: parabolic moves, but the reality is a lot of it

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Speaker 16: is coming off tech earnings in terms of what we're

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Speaker 16: seeing from hyperscours, and then in terms of Korea. You know,

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Speaker 16: some of the things that you've seen with the leverage

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Speaker 16: gtfs and obviously, you know a lot of the sort

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Speaker 16: of risks, risk on, risk off. I think that is

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Speaker 16: going to continue to be about. It's really about us

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Speaker 16: tech earnings at front and center.

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Speaker 3: Well, let's talk about some of those tech earnings. Obviously,

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Speaker 3: we just heard from Amazon a very positive reaction in

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Speaker 3: the shares this morning after a fifth straight quarter of

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Speaker 3: cloud growth and an increase in projections on how much

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Speaker 3: they're going to spend on AI this year.

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Speaker 4: We've seen some different.

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Speaker 3: Reactions when it comes to those, says, how do you

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Speaker 3: read Amazon's earnings?

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Speaker 16: Dan, Look, I mean it's really about hyperscalers. I mean,

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Speaker 16: if you think about Alphabet, what we saw from Microsoft. Now,

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Speaker 16: in terms of Amazon, it's about the cloud growth because

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Speaker 16: that's really the validation of the AI revolution that's playing

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Speaker 16: out front and center. And I think you know as well,

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Speaker 16: as long as you're showing these numbers, the cap X

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Speaker 16: investors are fine and willing and understand why they're spending.

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Speaker 16: And I think that's where of the narrative from this

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Speaker 16: earning season. We've seen across the hyperscalers worrying about monization

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Speaker 16: across tech.

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Speaker 4: But now you're starting to see it.

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Speaker 3: So, why do you think we're seeing a different reaction

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Speaker 3: when it comes to Amazon's boost to its capital spending

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Speaker 3: forecast as well as Microsoft.

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Speaker 4: Compared to what we saw last week from Alphabet.

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Speaker 16: Yeah, look, I think if Alphabet reported results of this week,

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Speaker 16: it would be a different reaction. I think part of

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Speaker 16: that was just was so nervous going into those numbers,

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Speaker 16: and I think what you saw there was maybe a

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Speaker 16: little bit too much of an increase from a CAPACX perspective.

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Speaker 16: But now it's a different narrative because you when you

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Speaker 16: look at Alphabet, you look at Amazon, you look at Microsoft.

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Speaker 16: Now you're seeing the clear narrative around hyperscaler growth.

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Speaker 4: Well, what's the narrative for Apple?

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Speaker 1: Then?

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Speaker 3: Obviously their revenue came in short of Wall Street estimates.

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Speaker 3: How does that set the table for John Turnis once

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Speaker 3: he takes the rains from Tim Cook later this year,

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Speaker 3: got about a minute left.

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Speaker 16: Well, for Turner's the challenge is going to be supplied.

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Speaker 16: You have limited memory, and that's something that they talked

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Speaker 16: about in the call. I think investors, from an Apple perspective,

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Speaker 16: it's really more looking at iPhone eighteen the AI strategy

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Speaker 16: services in terms of you know, a little white but

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Speaker 16: ultimately what that's going to do. But there's no doubt,

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Speaker 16: I mean Cook called it once in a hundred year,

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Speaker 16: you know, sort of floodstorm. The memory can continues to

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Speaker 16: be an issue. There's a scar stif it's all going ai.

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Speaker 6: Did you then,