WEBVTT - Bloomberg Daybreak: July 27, 2022 - Hour 2 (Radio) 0:00:00.880 --> 0:00:04.760 Live from the Bloomberg Interactive Broker Studios. Is Bloomberg Daybreak 0:00:04.800 --> 0:00:10.000 for Wednesday July Coming up this hour. Former President Trump's 0:00:10.000 --> 0:00:12.600 efforts to create fake electors said to be probed by 0:00:12.640 --> 0:00:15.960 the Justice Department. Investors wait for a widely expected seventy 0:00:15.960 --> 0:00:19.320 five basis point hike from the Fed. Futures jump following 0:00:19.320 --> 0:00:22.840 earnings from Microsoft and Alphabet, and President Biden prepares to 0:00:22.880 --> 0:00:26.520 meet China's hijin Ping as fresh tension swirl over time, 0:00:26.560 --> 0:00:29.640 one New York Mayor Eric Adams says the era of catch, 0:00:29.680 --> 0:00:33.280 release repeat for criminals has to end. Plus no jackpot 0:00:33.360 --> 0:00:36.360 winner in the Mega Millions lottery on Michael Barre Ahead, 0:00:36.560 --> 0:00:39.560 I've done standshower and four Yankee six to three to 0:00:39.680 --> 0:00:42.280 start the Subway series, which ends tonight at City V. 0:00:44.479 --> 0:00:48.120 That's all training ahead on Bloomberg Daybreak on Bloomberg he 0:00:48.200 --> 0:00:51.920 Living three on New York, Bloomberg one, Washington, d C, 0:00:52.400 --> 0:00:56.680 Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, 0:00:57.200 --> 0:01:00.160 Sirius x M one nine Team, and around the world 0:01:00.160 --> 0:01:03.800 on Bloomberg Radio dot Com and via The Bloomberg Business. 0:01:07.520 --> 0:01:10.800 Good Morning, I'm Nathan Hagar. And I'm Karen Moscow. US 0:01:10.880 --> 0:01:13.920 DOT index futures on the rise this morning. We are 0:01:13.959 --> 0:01:15.600 coming here to six oh one on Wall Street, and 0:01:15.640 --> 0:01:18.320 we checked the markets every fifteen minutes throughout the trading day. 0:01:18.520 --> 0:01:21.880 On Bloomberg S and P futures up thirty six points down. 0:01:21.920 --> 0:01:24.640 Futures have one forty seven and as day futures have 0:01:24.720 --> 0:01:28.240 one eighty one. Ten year Treasury up five thirty seconds. 0:01:28.319 --> 0:01:30.440 You two point seven eight percent. They yield on the 0:01:30.480 --> 0:01:33.120 two year three point oh four percent, and nine n 0:01:33.280 --> 0:01:35.959 screwed oil is up a tenth of a percent. Nathan, 0:01:36.040 --> 0:01:38.039 all right, Karen, we'll have more in markets in a minute. 0:01:38.040 --> 0:01:40.039 It is a busy day with a Fed decision in 0:01:40.120 --> 0:01:43.559 tech earnings reaction. But first, the Justice Department is taking 0:01:43.600 --> 0:01:46.400 aim at Donald Trump. A federal grand jury is looking 0:01:46.440 --> 0:01:49.560 into efforts by the former president to create false electors 0:01:49.600 --> 0:01:52.960 to overturn the election. We get details from Amy Morris 0:01:52.960 --> 0:01:56.640 in our Bloomberg newsroom in Washington. Mark Short, who was 0:01:56.720 --> 0:01:59.200 chief of staff or former Vice President Mike Pence, and 0:01:59.240 --> 0:02:02.080 Greg Jacob, who was Pence's teeth counsel, were asked by 0:02:02.120 --> 0:02:05.720 federal prosecutors about conversations they had with former President Trump 0:02:05.800 --> 0:02:09.720 about creating and submitting false elector certificates. This as Trump 0:02:09.720 --> 0:02:12.960 addressed the America First Summit in d C was November. 0:02:13.000 --> 0:02:16.160 The people are going to vote to stop the destruction 0:02:16.280 --> 0:02:18.560 of our country. Sources tell Bloomberg the nature of the 0:02:18.639 --> 0:02:21.600 questions before the grand jury indicate the probe has expanded 0:02:21.600 --> 0:02:25.280 beyond those who attacked the capital. On January six, in Washington, 0:02:25.320 --> 0:02:28.080 I'm Amy Morris, Bloomberg Daybreak, Hey mey, thank you. Another 0:02:28.120 --> 0:02:31.800 major story in Washington this afternoons FED decision. Investors are 0:02:31.800 --> 0:02:34.320 looking for another rate high from J. Powell and Company, 0:02:34.320 --> 0:02:37.320 and we get more from Bloomberg's Michael McKee. Global. Wall 0:02:37.320 --> 0:02:39.960 Street has priced in a three quarters percentage point increase 0:02:40.000 --> 0:02:43.040 in the FEDS benchmark rate. The real question is what 0:02:43.200 --> 0:02:46.040 comes next. At the past few meetings, FED Chair J. 0:02:46.160 --> 0:02:48.720 Powell has suggested the FED would be looking at fifty 0:02:48.880 --> 0:02:52.600 or seventy five basis point. Moves comments he's not likely 0:02:52.680 --> 0:02:56.560 to repeat beneficials won't be making new forecasts at this meeting, 0:02:56.760 --> 0:02:59.000 but there are signs the rate of inflation may be 0:02:59.120 --> 0:03:02.160 starting to eat. At the same time the US economy 0:03:02.240 --> 0:03:05.840 appears to be slowing. Expect Powell in his news conference 0:03:05.880 --> 0:03:08.880 to try to retain as much flexibility as he can. 0:03:09.680 --> 0:03:12.960 Michael McKee, Bloomberg, debriak, Michael, thank you. We'll have complete 0:03:13.000 --> 0:03:15.840 coverage of the FED decision and cheer Powell's news conferences 0:03:16.000 --> 0:03:19.840 afternoon in a special edition of Bloomberg Surveillance. Special coverage 0:03:19.840 --> 0:03:22.640 starts on Bloomberg Radio and Television at one thirty pm 0:03:22.680 --> 0:03:25.160 Wall Street Time. Turning the stocks now, Karen, we are 0:03:25.200 --> 0:03:27.520 seeing futures get to pop this morning following some big 0:03:27.560 --> 0:03:30.720 tech earnings. We begin with Microsoft. Those chairs are up 0:03:30.720 --> 0:03:32.800 more than three and a half percent after the company 0:03:32.840 --> 0:03:36.520 delivered an upbeat sales forecast. The story from Bloomberg's Charlie Pellett. 0:03:36.840 --> 0:03:40.560 It eases investor concerns about growth that had flared up 0:03:40.600 --> 0:03:45.000 following a lackluster fourth quarter earnings report. On the conference call, 0:03:45.120 --> 0:03:48.920 the software giants said it expects revenue and operating income 0:03:48.960 --> 0:03:52.520 growth at a double digit pace for fiscal twenty three, 0:03:52.560 --> 0:03:56.400 which ends next June. Earlier, the company reported fourth quarter 0:03:56.440 --> 0:03:59.880 sales and profit that fell short of analyst projections, held 0:04:00.040 --> 0:04:03.880 act by on favorable currency exchange rates and weaker demand 0:04:03.920 --> 0:04:08.560 for cloud computing services, personal computer software, and advertising. On 0:04:08.680 --> 0:04:13.120 its online properties in New York. Charlie Pellett Bloomberg Daybreak. 0:04:13.280 --> 0:04:15.360 All right, Charlie, thank you. We're also seeing shares of 0:04:15.400 --> 0:04:17.880 Alphabet on the rise. This morning at three point four 0:04:18.000 --> 0:04:21.240 per SAI, the Google parent reported revenue that was in 0:04:21.279 --> 0:04:26.240 line with expectations. Angelo Zeno is senior equity analyst at CFRA. 0:04:26.800 --> 0:04:31.360 There's a clear distinction between companies like Alphabet and Apple, 0:04:31.440 --> 0:04:35.800 which are great compounders, great free cash flow generators, whether 0:04:35.839 --> 0:04:39.320 you're going in an upturn or a downturn relative to 0:04:39.400 --> 0:04:44.239 others out there. And Angeloso at CFRA says Google sales 0:04:44.240 --> 0:04:47.760 gains Indicata's advertising business may be positioned well to weather 0:04:47.920 --> 0:04:50.880 a crunch and marketing spending. It's another busy day for 0:04:50.920 --> 0:04:53.560 earnings in Europe, Karen, where big banks are in focus. 0:04:53.680 --> 0:04:55.680 Let's go to London and get the latest with Bloomberg's 0:04:55.680 --> 0:04:57.839 You and Pot's Good morning You and good morning Nathan 0:04:57.839 --> 0:05:01.080 and Karen. Another new boss, another new turnaround plan. Credit 0:05:01.160 --> 0:05:03.840 Sweet is replacing its CEO after two years in the 0:05:03.960 --> 0:05:06.120 job and rolling out a new plan to fix the 0:05:06.160 --> 0:05:09.320 business just nine months after the last one. This has 0:05:09.320 --> 0:05:11.679 the Swiss led the Post a large and unexpected loss 0:05:11.760 --> 0:05:15.520 in the second quarter. Happier times over at Italy's UNI Credit, 0:05:15.560 --> 0:05:17.640 though profits in the latest three months coming in a 0:05:17.800 --> 0:05:21.239 double the level forecast by analysts, un Credit shares gaining 0:05:21.279 --> 0:05:23.520 some five percent. This morning in London, I'm you and 0:05:23.560 --> 0:05:25.960 parts day break, Hey you and thank you. He told 0:05:25.960 --> 0:05:29.280 you yesterday about an SUC investigation centered on coin Base. 0:05:29.600 --> 0:05:32.960 Now we're learning that has a big name investor cutting 0:05:33.000 --> 0:05:35.520 bait on the crypto company. To get the latest life 0:05:35.520 --> 0:05:38.240 from Bloomberg's Ready Too Young, Good Morning, Ready to Good morning, 0:05:38.279 --> 0:05:42.279 Karen cathy Wood's Ark Investment Management dumps coin based shares 0:05:42.360 --> 0:05:45.440 for the first time this year. Arcs daily trading data 0:05:45.480 --> 0:05:48.640 compiled by Bloomberg show three of the funds sell just 0:05:48.839 --> 0:05:52.320 over one point four one million shares, valued at about 0:05:52.360 --> 0:05:56.080 seventy five million dollars as of yesterday's close, and of that, 0:05:56.480 --> 0:05:59.880 the firm's flagship ARC Innovation et F sells one point 0:06:00.040 --> 0:06:03.440 one two million shares of coin Base. Bloomberg sources say 0:06:03.440 --> 0:06:07.120 coin bases facing a US probe into whether it improperly 0:06:07.200 --> 0:06:10.760 led Americans trade digital assets that should have been registered 0:06:10.839 --> 0:06:14.760 as securities. Shares of the world's largest US crypto exchange 0:06:15.000 --> 0:06:18.159 lost about a fifth of their value. Tuesday Live in 0:06:18.240 --> 0:06:20.920 New York. I'm gonna need a young Bloomberg daybreak. We 0:06:21.000 --> 0:06:23.560 need to thank you. Turning to geopolitics, the U. S 0:06:23.600 --> 0:06:26.200 And China are front and center, with Presidents Biden and 0:06:26.279 --> 0:06:29.800 she Jinping set for a call tomorrow. Tensions are simmering 0:06:29.880 --> 0:06:31.640 on a range of fronts, and we get the story 0:06:31.640 --> 0:06:35.039 from Bloomberg. Said Baxter, the possible Nancy Pelosi trip to 0:06:35.040 --> 0:06:38.120 Taiwan is number one. This is speaker Pelosi is being 0:06:38.240 --> 0:06:41.240 urged by allies and foes alike to make the trip 0:06:41.279 --> 0:06:44.080 to Taiwan, saying to Councel would look as if she's 0:06:44.120 --> 0:06:47.080 backing down to China. And then it is smack dab 0:06:47.120 --> 0:06:49.480 in the middle of the so called Chip bill debate, 0:06:49.520 --> 0:06:52.120 which is supposed to pass the Senate today, going to 0:06:52.200 --> 0:06:54.159 the House to be signed by the President by the 0:06:54.279 --> 0:06:57.200 end of the week. So with that backdrop, how much 0:06:57.200 --> 0:06:59.880 attention of Russia and Ukraine will get as a question 0:07:00.000 --> 0:07:03.560 along with human rights? And the administration is now not 0:07:03.760 --> 0:07:07.520 commenting on whether Mr Biden has decided on easing tariffs 0:07:08.000 --> 0:07:11.440 in San Francisco. I'm at Baxter Bloomberg Daybreak, alright, ed, 0:07:11.480 --> 0:07:14.600 thank you, futures are moving higher this morning. Straight ahead 0:07:14.600 --> 0:07:17.600 your latest local headlines. In the check of sports. This 0:07:18.400 --> 0:07:24.880 is Bloomberg and it's sounds six oh seven on Wall Street, 0:07:24.920 --> 0:07:27.200 seventy one degrees in Central Park. Still dealing with an 0:07:27.200 --> 0:07:29.559 accident southbound on the major Deagan and a hundred seventy 0:07:29.600 --> 0:07:32.040 nine will get the latest details in traffic. First, Michael 0:07:32.080 --> 0:07:33.760 Bars here with what else is going on in New 0:07:33.800 --> 0:07:36.680 York and around the world. Good morning, Michael, Good morning Nathan. 0:07:36.720 --> 0:07:40.000 New York Mayor Eric Adams says the era of catch, release, 0:07:40.120 --> 0:07:43.560 repeat when it comes to criminals has to end. Adams 0:07:43.560 --> 0:07:46.240 talked about the recent incident and a Harlem subway stop. 0:07:46.640 --> 0:07:50.080 Video shows a team punching officers for several minutes at 0:07:50.080 --> 0:07:55.280 the street station as police struggled to arrest him. Adams 0:07:55.280 --> 0:07:57.760 says the team was arrested a few days ago and 0:07:57.960 --> 0:08:02.240 was released before the incident. Just a total disregard for 0:08:02.320 --> 0:08:07.320 public safety, not only for public safety for that Trisit officer, 0:08:07.640 --> 0:08:11.160 but also for the person he robbed. This is what 0:08:11.200 --> 0:08:15.320 we are saying about what is happening in our criminal 0:08:15.360 --> 0:08:18.760 justice system. Earlier this week, in my p D trans Achieve, 0:08:18.920 --> 0:08:22.680 Jason Wilcox says that assaults on his officers of skyrocketed 0:08:22.720 --> 0:08:26.520 over a fifty five increase this year. New Jersey Governor 0:08:26.560 --> 0:08:29.960 Phil Murphy's administration is asking state residents to use less 0:08:30.000 --> 0:08:34.880 water amid a heat spell and scarce statewide rainfall. Some 0:08:34.920 --> 0:08:37.600 parts of New Jersey had five straight days of temperatures 0:08:37.720 --> 0:08:41.280 one hundred degrees or higher through Sunday. Officials stops short 0:08:41.320 --> 0:08:44.720 of enacting restrictions. The families of the nine eleven victims 0:08:44.760 --> 0:08:48.320 are letting pro golfers and former President Trump know they 0:08:48.360 --> 0:08:52.720 are outraged over the Live Golf Invitational Saudi Back tournament 0:08:52.800 --> 0:08:56.040 will be hosted at Trump's Bedminster, New Jersey golf course 0:08:56.120 --> 0:08:59.600 on Friday. Terry Strada is the national chair of Nine 0:08:59.640 --> 0:09:02.960 Eleven Families United. She called the pro golfers who are 0:09:03.000 --> 0:09:07.000 participating sellouts. And they thought that taking a large sum 0:09:07.080 --> 0:09:09.640 of money from the Kingdom, you know, would give them 0:09:09.800 --> 0:09:12.760 all of this financial security. And it might do that, 0:09:13.320 --> 0:09:15.760 but you're selling your soul to the devil when you 0:09:15.840 --> 0:09:19.160 get in bed with the saudiast. The US government says 0:09:19.200 --> 0:09:22.320 there was Saudi involvement in funding the terror network that 0:09:22.440 --> 0:09:25.560 committed the nine eleven attack. It's a permanent place to 0:09:25.600 --> 0:09:28.960 remember the late Jackie Robinson, the Brooklyn Dodger who broke 0:09:29.000 --> 0:09:31.760 the color barrier, now has a museum in Soho in 0:09:31.800 --> 0:09:35.480 his name. Several of robinson surviving relatives were in attendance 0:09:35.559 --> 0:09:38.520 yesterday for the ribbon cutting. The museum officially opens to 0:09:38.559 --> 0:09:42.160 the public September five. A giant Mega Millions lottery jackpot 0:09:42.160 --> 0:09:45.000 balloon to over a billion dollars after no one matched 0:09:45.040 --> 0:09:47.319 all six numbers and on the top prize. The next 0:09:47.440 --> 0:09:50.440 drawing is Friday Global News twenty four hours a day 0:09:50.480 --> 0:09:53.480 on here and on Bloomberg Quicktake, powered by more than 0:09:53.559 --> 0:09:55.959 twenty seven hundred journalists and analysts more than a hundred 0:09:55.960 --> 0:09:59.520 twenty countries. Michael Barr and this is Bloomberg. Nathan Okay, 0:09:59.559 --> 0:10:06.400 Michael kill home to a six ten on Wall Street. 0:10:06.400 --> 0:10:09.040 Time for the Bloomberg Sports Update with John Sesshire. Thanks 0:10:09.080 --> 0:10:11.200 they can sell out crowd at City Field. They saw 0:10:11.200 --> 0:10:14.200 an eventful first inning to start the Subway series. Yankees 0:10:14.240 --> 0:10:17.439 and Mets both homer twice. Aaron Judge number thirty eight 0:10:17.800 --> 0:10:19.560 hit it to the opposite field on the next pitch. 0:10:19.640 --> 0:10:22.600 Anthony Rizzo, his twenty three of the year, also the 0:10:22.640 --> 0:10:24.959 opposite way Mets didn't get a first any home run 0:10:25.000 --> 0:10:29.000 from Starling Marte. Mets scored again, then Homer again. So 0:10:29.000 --> 0:10:30.680 we're gonna drive in the air in the left well 0:10:30.800 --> 0:10:34.800 hit Hicks going back turns. Watch this. It is to 0:10:35.440 --> 0:10:40.160 Homer by edone Oh Escobar into the city sheets in 0:10:40.280 --> 0:10:42.960 front of the great wall of pushing beyond the three 0:10:43.080 --> 0:10:46.480 fifty eight part. It's a two run harbor for Escobar. 0:10:47.040 --> 0:10:49.080 Cbs and Mets led the whole night from there they 0:10:49.120 --> 0:10:52.199 did the Yanks six to three. Taiwan Walker beat Jordan Motgomery, 0:10:52.200 --> 0:10:54.920 who labor. He got only seven ounce before departing four 0:10:55.000 --> 0:10:58.240 outside for Edwin Diaz is twenty second. The series concludes 0:10:58.320 --> 0:11:01.600 tonight a Mingo Herman against the Mets David Peterson. Before 0:11:01.600 --> 0:11:03.480 the game, the Yankees but John Carlos Stanton on the 0:11:03.559 --> 0:11:07.360 injured Lift Achilles ten tonightus Braves beat the Phillies, the 0:11:07.400 --> 0:11:10.120 state two games behind the Mets. The Astros lost in Oakland. 0:11:10.440 --> 0:11:12.920 They're still two behind the Yanks for best record American lead. 0:11:13.000 --> 0:11:15.600 The Blue James beat the Cardinals. That's toronto seventh win 0:11:15.640 --> 0:11:18.440 in a row. Baltimore by Tampa Bay to move over 0:11:18.559 --> 0:11:20.360 five hundred of the Orioles are now ahead of the 0:11:20.400 --> 0:11:23.839 Red Sox, who dropped to last place. NFL News with 0:11:23.880 --> 0:11:26.400 the opening of all thirty two training camps, Tampa Bay 0:11:26.520 --> 0:11:28.959 signed veteran white out Julio Jones, so he's back in 0:11:29.000 --> 0:11:32.400 the NFC South. A seven time pro bowler while with Atlanta, 0:11:32.400 --> 0:11:35.000 spent last season at Tennessee. Since the nati QB Joe 0:11:35.040 --> 0:11:36.800 Burrow had an appendeck to me he'll miss a couple 0:11:36.840 --> 0:11:39.559 of weeks. Seattle running back Chris Carson, a two time 0:11:39.600 --> 0:11:42.840 thousand yard rushier, forced to retire at age seven due 0:11:42.840 --> 0:11:46.600 to the neck injury. John Stash, However, Bloomberg Sports Nathan Okay, John, 0:11:46.640 --> 0:11:49.400 thank you. SMP futures up thirty four points, South Futures 0:11:49.480 --> 0:11:52.400 up a hundred thirty seven Nasdaq futures the tech heavy 0:11:52.480 --> 0:11:55.800 side leading the games this morning with a hundred seventy 0:11:55.880 --> 0:11:58.360 six point increase. That is a game of one and 0:11:58.480 --> 0:12:01.959 a half percent. Dan, I've some white Bush securities, joins 0:12:02.040 --> 0:12:07.400 us next on the Tech story. This is Bloomberg Flom 0:12:07.600 --> 0:12:10.520 eleven three oh other. Sunshine upper eighties today, more clouds 0:12:10.559 --> 0:12:12.920 than sun tomorrow, some scattered showers and storms possible with 0:12:12.960 --> 0:12:15.680 the high near ninety. A few more showers likely Friday, 0:12:15.760 --> 0:12:17.880 with highs in the upper eighties. Right now seventy one 0:12:18.280 --> 0:12:25.079 in Central Park markets, headlines and breaking news twenty four 0:12:25.120 --> 0:12:28.120 hours a day at Bloomberg dot com, the Bloomberg Business 0:12:28.200 --> 0:12:32.200 Out and at Bloomberg Victape, He's a Bloomberg Business flash 0:12:38.200 --> 0:12:41.600 and I'm Karen Moscow stocks and US stock index futures 0:12:41.640 --> 0:12:44.400 are rallying as a batch of resilient company earnings helped 0:12:44.440 --> 0:12:47.160 to alleviate some of the wider caution and markets ahead 0:12:47.160 --> 0:12:51.000 of a pivotal Federal Reserve monetary policy decision. We check 0:12:51.040 --> 0:12:53.240 the markets every fifteen minutes throughout the trading day on 0:12:53.280 --> 0:12:55.960 Bloomberg Guess and P futures up thirty four points this morning, 0:12:56.040 --> 0:12:58.920 down futures up a hundred thirty four, Masday futures up 0:12:58.920 --> 0:13:01.800 one d seventy, and the decks in Germany's up about 0:13:01.800 --> 0:13:04.440 two tenths of a percent. Pen Your treasury of six 0:13:04.520 --> 0:13:07.080 thirty seconds yield two point seven eight percent. They yield 0:13:07.120 --> 0:13:09.880 on the two year three point oh four percent. NIMEX 0:13:09.880 --> 0:13:12.319 screwed oil is up third of percent, up thirty three 0:13:12.400 --> 0:13:15.640 cents and nine twenty nine cents of barrel comex sculled 0:13:15.679 --> 0:13:17.720 up two tenths per cent or three dollars sixty cents 0:13:17.760 --> 0:13:20.920 at seventeen thirty nine thirty announce the euro one point 0:13:21.120 --> 0:13:23.480 one four two against the dollar British found one point 0:13:23.520 --> 0:13:26.000 two zero six nine and the end one thirty six 0:13:26.080 --> 0:13:28.440 point five seven. And looking at bitcoin, it's up when 0:13:28.480 --> 0:13:31.120 in a third percent at twenty one thousand, two hundred 0:13:31.240 --> 0:13:34.360 seventy dollars, that's a Bloomberg business flash. Now here's Michael 0:13:34.400 --> 0:13:36.600 Barrow with more on what's going on around the world. 0:13:36.760 --> 0:13:39.480 Michael Karen, thank you very much. The Justice Department is 0:13:39.480 --> 0:13:42.839 said to be looking into former President Trump's actions as 0:13:42.920 --> 0:13:46.439 part of its criminal investigation into the January sixth riot. 0:13:46.840 --> 0:13:49.880 According to a person familiar with the matter, prosecutors have 0:13:49.960 --> 0:13:53.720 been asking about conversations between Trump and his inner circle. 0:13:54.160 --> 0:13:57.080 President Joe Biden plans to speak the Chinese president shi 0:13:57.160 --> 0:14:00.240 Jing Ping tomorrow. It's scheduled to take place of New 0:14:00.320 --> 0:14:04.960 Tensions as how Speaker Nancy Pelosi reportedly plans to visit Taiwan. 0:14:05.679 --> 0:14:08.559 In baseball, the Mats beat the Yankee six three, The 0:14:08.640 --> 0:14:12.040 Guardians beat the Red Sox eight three, The Orioles beat 0:14:12.080 --> 0:14:15.240 the Rays, the Nationals beat the Dodgers, The A's down 0:14:15.280 --> 0:14:19.320 the Astros. The Giants lost to the Diamondbacks. Seven three 0:14:19.760 --> 0:14:22.280 Global News twenty four hours a day on air and 0:14:22.480 --> 0:14:25.520 on Bloomberg Quick Take, powered by more than twenty seven 0:14:25.560 --> 0:14:28.240 hundred journalists and analysts more than a hundred twenty countries. 0:14:28.600 --> 0:14:31.600 Michael Barren, this is Bloomberg. Nathan Okay, Michael, thank you. 0:14:31.680 --> 0:14:33.640 It is six nineteen on Wall Street Live from the 0:14:33.680 --> 0:14:37.160 Bloomberg Interactive Broker Studios. This is Bloomberg and Daybreak. We 0:14:37.200 --> 0:14:39.160 want to talk more about the latest tech earnings. Are 0:14:39.160 --> 0:14:42.600 watching shares of Microsoft in the pre markets still gaining 0:14:42.680 --> 0:14:45.360 up about three point six percent in the pre market 0:14:45.440 --> 0:14:48.720 after the software giant posted an outlook that suggests to 0:14:48.880 --> 0:14:51.560 can weather the worst of the economic slowdown. Let's bring 0:14:51.600 --> 0:14:54.160 in Dan Ives for more on this senior equity research 0:14:54.200 --> 0:14:58.000 annelist had Wedbush Securities. Dan, It's always great to speak 0:14:58.080 --> 0:15:00.560 with you, and it looks like we're seeing kind of 0:15:00.600 --> 0:15:05.200 a sigh of relief across the tech sector. Isn't warranted 0:15:05.240 --> 0:15:09.520 after Microsoft's results, Well, it's warranted because Cloud, I mean, 0:15:09.600 --> 0:15:12.680 that's a pillar of enterprise spend and the best bambers 0:15:12.760 --> 0:15:16.440 Microsoft Street was on Pindy Needles going into this much 0:15:16.520 --> 0:15:19.720 better than expected. I mean it really not seeing any 0:15:19.800 --> 0:15:22.960 sort of push outs in terms of cloud growth. Gave 0:15:23.080 --> 0:15:27.240 strong guidance and I think it's a rocket Gibraltar stock 0:15:27.360 --> 0:15:30.040 and what's been a dark economic storm, but this is 0:15:30.160 --> 0:15:34.280 important for what cloud and enterprise spending streets gonna really 0:15:34.360 --> 0:15:37.520 view this as a baramter going forward. There is still 0:15:37.920 --> 0:15:41.200 a lot of competition in the cloud though, isn't there? 0:15:41.320 --> 0:15:48.080 Does Microsoft have market share advantage in the cloud? Yeah? Well, Microsoft, 0:15:48.240 --> 0:15:52.000 along with Amazon A WUS, they continue to dominate cloud 0:15:52.120 --> 0:15:55.520 and of course Google being number three, and it's really 0:15:55.760 --> 0:15:59.360 dominated by those three players. But Microsoft, look, they're just 0:15:59.440 --> 0:16:01.800 in a man supposition of strength because this is their 0:16:01.840 --> 0:16:06.800 backyard and I think the important data pointeers companies. Even 0:16:06.880 --> 0:16:10.760 in a macro like this, they're accelerating the digital transformation 0:16:11.240 --> 0:16:13.960 that's front and center. Is a positive from Microsoft to 0:16:14.080 --> 0:16:17.520 Talent and obviously the jittery macro. This is what the 0:16:17.640 --> 0:16:20.680 street needed, especially given what we've seen over the last 0:16:20.720 --> 0:16:23.960 few weeks. This says something about the macro environment, though, 0:16:24.000 --> 0:16:27.040 doesn't it. When we see Microsoft and its outlook saying 0:16:27.080 --> 0:16:30.360 that it's going to be leaning more on the cloud side, 0:16:30.440 --> 0:16:34.600 the commercial spend side as opposed to the consumer side 0:16:34.640 --> 0:16:37.120 and PC software. What does that say about the direction 0:16:37.160 --> 0:16:40.200 of Microsoft going forward? You know, I think it shows 0:16:40.240 --> 0:16:43.680 a biofrocated tech market. You're going to continue see softness, 0:16:43.800 --> 0:16:48.720 consumer driven PC obviously supply chain issues coming out of China. 0:16:49.200 --> 0:16:52.640 Both the street cares about front center form. Microsoft is 0:16:52.720 --> 0:16:55.920 the cloud business and that's that's what I've used the 0:16:56.000 --> 0:16:58.560 core DNA of the growth thesis, and that's what we 0:16:58.640 --> 0:17:01.720 saw last night. I also think when you're looking into 0:17:01.720 --> 0:17:06.160 the overall macro, the street, the world is watching when 0:17:06.240 --> 0:17:09.320 Microsoft gets gotten and I think this is no longer 0:17:09.480 --> 0:17:12.040 of course alphabet and that's the one to punch that 0:17:12.160 --> 0:17:16.480 the tech bowls needed and what's been a white knuckle environment. Yeah. 0:17:16.480 --> 0:17:18.639 It was also interesting as well to hear the CEO 0:17:18.720 --> 0:17:22.240 Satanadella talking about how the strong dollar has been a 0:17:22.320 --> 0:17:26.680 headwind for Microsoft this quarter and despite that, thinking that 0:17:27.080 --> 0:17:29.119 it's only going to need to cut sales by about 0:17:29.240 --> 0:17:32.159 four percent for the year on continued dollar strength. What 0:17:32.240 --> 0:17:35.000 do you make of that? Yeah, and the dollar strength, 0:17:35.119 --> 0:17:37.560 especially for the multinationals, that's gonna be a headwin. We'll 0:17:37.560 --> 0:17:40.840 see that from Apple tomorrow. As well. But but but 0:17:41.000 --> 0:17:43.760 really that was a well known headwind. I think you 0:17:43.960 --> 0:17:47.600 really streets trying to understand what cored demand looks like. 0:17:48.400 --> 0:17:50.960 And if you think about many you know that that 0:17:51.080 --> 0:17:54.000 have really talked about the nervousness that we're seeing across 0:17:54.040 --> 0:17:59.120 the macro enterprises, given balance sheets, given the digital transformation, 0:17:59.760 --> 0:18:02.320 it's pretty positive. And I think we'll see other data 0:18:02.400 --> 0:18:05.120 points from Amazon on the w S side as well, 0:18:05.760 --> 0:18:08.520 and that's important because that just shows you're gonna have 0:18:08.520 --> 0:18:11.000 a fork in the road in terms attack and that's 0:18:11.040 --> 0:18:13.879 really what you're seeing play out Microsoft. You know, it's 0:18:13.960 --> 0:18:16.680 really out call alms Gidens heard around the world. And 0:18:17.160 --> 0:18:20.479 speaking of the demand story in our last minute here, 0:18:20.480 --> 0:18:22.440 I want to ask you a little bit about Alphabet's 0:18:22.560 --> 0:18:26.399 results as well. Coming in stronger than expected on the 0:18:26.520 --> 0:18:29.280 ads side. Does that ease some of the concerns for 0:18:29.320 --> 0:18:33.480 you that we got after the less than exciting results 0:18:33.520 --> 0:18:37.240 from snap and Twitter on ad spend. Yeah, and Snapchat 0:18:37.359 --> 0:18:39.600 that was a nightmare in Elm Street Quarter and that 0:18:39.760 --> 0:18:42.600 continues to be a disaster, and I think there were 0:18:42.760 --> 0:18:45.720 fears that that was going to spread be being a 0:18:46.119 --> 0:18:49.000 you with Facebook and of course with Google you'll get 0:18:49.000 --> 0:18:52.000 ad hours better than feared, actually pretty strong in terms 0:18:52.040 --> 0:18:55.200 of where they came in. It shows you'll see some swelling, 0:18:55.840 --> 0:18:59.600 but especially with YouTube from the Golden Assets that's holding 0:18:59.680 --> 0:19:02.120 up there than feared. You combine now with what we're 0:19:02.119 --> 0:19:05.880 seeing with Microsoft, you're now starting to have second sort 0:19:05.920 --> 0:19:08.879 of teak in terms of neb Things are not falling 0:19:08.920 --> 0:19:12.360 off a cliff like some of the you know, heck 0:19:12.520 --> 0:19:14.639 bears have kind of talked about, and I think this 0:19:14.800 --> 0:19:17.359 is an important print, you know, in terms of a 0:19:17.440 --> 0:19:20.440 broader tech sector. Always great having you on, Dan, Thanks 0:19:20.480 --> 0:19:22.960 for coming back on with us. Dan Ives, senior analysts 0:19:22.960 --> 0:19:26.760 for equity research at Wedbush Securities. Again looking at shares 0:19:26.880 --> 0:19:29.359 of Microsoft in the pre market, they're moving by higher 0:19:29.400 --> 0:19:34.000 by nearly four percent now after those stronger than expected 0:19:34.119 --> 0:19:38.040 outlooks from the software Giant and cloud player with the 0:19:38.640 --> 0:19:41.880 Azure Cloud service. Looking ahead to the market open more broadly, 0:19:42.400 --> 0:19:46.000 SMP futures are higher by thirty two points, South futures 0:19:46.080 --> 0:19:49.439 up a hundred twenty three and NASCAC futures leading the games. 0:19:49.840 --> 0:19:52.200 Uh Tech leading the way this morning, up a hundred 0:19:52.359 --> 0:19:54.919 sixty nine points for a gain of one point four percent. 0:19:55.359 --> 0:19:57.640 Ten your treasury is up four thirty seconds, the yield 0:19:57.680 --> 0:20:00.679 two point seven nine percent ahead of the Fed overserves 0:20:01.040 --> 0:20:08.560 July policy decision. This is Bloomberg Bloomberg eleven three oh weather, 0:20:08.640 --> 0:20:12.320 sunshine and highs near ninety today, tomorrow and the next day. 0:20:12.560 --> 0:20:15.440 You could see some scattered showers and storms in the week. 0:20:15.560 --> 0:20:23.119 Right now, it's seventy one degrees in SEPO. Broadcasting live 0:20:23.320 --> 0:20:27.240 from the Bloomberg Interacted Broker Studio in New York. Bloomberg 0:20:27.280 --> 0:20:31.320 E Living Freedom to Washington, d C. Bloomberg on to Boston, 0:20:31.440 --> 0:20:34.840 Bloomberg one O six one to San Francisco, Bloomberg nine 0:20:34.960 --> 0:20:38.000 sixty to the country Sirius XM Chado one nine team, 0:20:38.119 --> 0:20:41.280 and around the globe the Bloomberg Business app and Bloomberg 0:20:41.359 --> 0:20:50.280 Radio dot Com. This is Bloomberg Daybreak and at six 0:20:50.359 --> 0:20:52.960 thirty on Wall Street. Good morning, I'm Nathan Hager and 0:20:53.080 --> 0:20:55.560 I'm Kared Moscow. We are just about three hours away 0:20:55.640 --> 0:20:57.520 from the open of US trading. It's time for the 0:20:57.560 --> 0:20:59.520 five things that you need to know to start your day. 0:20:59.560 --> 0:21:04.000 Brachy you by Interactive Brokers, Interactive Brokers, Simple IBK, our 0:21:04.040 --> 0:21:06.800 Global Trader RAPP. Deposit in your local currency, and trade 0:21:06.840 --> 0:21:09.360 stocks in the US, Europe and Asia. Start your free 0:21:09.400 --> 0:21:13.440 trial at ibyk r dot com Slash Global Trader. First, 0:21:13.480 --> 0:21:15.520 the f O m C meets in Washington, where the 0:21:15.560 --> 0:21:18.200 Federal Reserve is expected to issue a seventy five basis 0:21:18.240 --> 0:21:21.000 point rate high today. Every Core I s I Chief 0:21:21.040 --> 0:21:24.920 equity strategist Julian Emmanuel said the FED risky anchoring inflation 0:21:25.000 --> 0:21:27.560 if it raises rates today and then cuts them in 0:21:27.640 --> 0:21:30.720 the future. Part of the dynamic in markets is that 0:21:30.840 --> 0:21:35.000 we've all have lovean trained to expect stocks to rally. 0:21:35.280 --> 0:21:38.119 When the FED cuts rates. To the extent that we 0:21:38.320 --> 0:21:42.480 take that away, you're actually doing a service. Never, of course, 0:21:42.560 --> 0:21:45.720 Julian Emmanuel said, the FED should tame inflation while keeping 0:21:45.760 --> 0:21:49.040 the market fundamentally sound. Tune into a special edition of 0:21:49.080 --> 0:21:52.399 Bloomberg Surveillance today for complete coverage of the FEDS starting 0:21:52.440 --> 0:21:55.480 at one thirty Wall Street Time. Right back to Markets, Karen, 0:21:55.560 --> 0:21:58.640 Futures are moving higher after earnings from Microsoft and Alphabet. 0:21:58.720 --> 0:22:01.840 Today we hear from Meta, the parent of Facebook, Instagram, 0:22:01.960 --> 0:22:05.120 and WhatsApp. Bloombergs Jeff Blinger has a preview. The bar 0:22:05.320 --> 0:22:08.840 for Meta platforms is set low. The social media giant 0:22:08.920 --> 0:22:11.720 recently slowed the pace of hiring, and there are some 0:22:11.880 --> 0:22:15.440 general concerns about the era of social media dominance. Meta 0:22:15.560 --> 0:22:18.120