Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Good morning, I'm Nathan
Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're
Speaker 1: following today.
Speaker 2: Karen, this stock sell off is intensifying around the world.
Speaker 3: This morning.
Speaker 2: In Japan, the topics sank six point one percent that
Speaker 2: completed a two day drop of nine point two the
Speaker 2: biggest route over two days since Japan's tsunami back in
Speaker 2: twenty eleven. US futures, as you mentioned, are sliding once
Speaker 2: again after yesterday's Wall Street sell off, following data that
Speaker 2: showed weekly unemployment claims hit a near one year high
Speaker 2: while manufacturing shrank. Cam Harvey, professor at Duke Business School,
Speaker 2: thinks the FED is behind the ball again.
Speaker 4: The FED is very late again. So they were late
Speaker 4: to raise interest rates when they were kind of brushing
Speaker 4: off the inflation surge, and they're late to reduce the rates,
Speaker 4: and the cost could be very substantial.
Speaker 2: Duke Business Professor Cam Harvey thinks one of those costs
Speaker 2: could be a hard landing. Meanwhile, a rally in treasuries
Speaker 2: is now into its seventh straight day, and again checking
Speaker 2: the ten yurar, it's up six thirty seconds now. The
Speaker 2: yield three point nine to five percent. The two year
Speaker 2: is at four point one four percent.
Speaker 5: Well, Nathan, All of this makes this morning's jobs report
Speaker 5: at crucial data point four investors. The forecast is for
Speaker 5: a gain of one hundred and seventy five thousand non
Speaker 5: farm jobs in July. We get a preview from Bloomberg's
Speaker 5: Michael McKee.
Speaker 6: The forecast is for a slight cooling in the labor
Speaker 6: market during July, but the risk for Wall Street and
Speaker 6: the Fed is a more dramatic drop in hiring and
Speaker 6: or a large rise in unemployment. Jobs data from adp
Speaker 6: ISM and initial jobless claims have come in weaker than
Speaker 6: expected in the past few weeks. At their meeting Wednesday,
Speaker 6: FED officials acknowledged a payrolls led economic slowdown is now
Speaker 6: as much of a risk as higher inflation. A bad
Speaker 6: news report today could raise questions about their decision to
Speaker 6: hold rate steady this week. Investors have already priced in
Speaker 6: rate cuts at the next four FED meetings. Michael McKee Bloomberg.
Speaker 2: Radio, Thanks Mike. Adding the pressure to stocks as well
Speaker 2: some disappointing high tech earnings led by Intel. Those shares
Speaker 2: are plunging nearly twenty two percent The chip maker forecast
Speaker 2: revenue for the third quarter below estimates and is suspending
Speaker 2: its dividends starting in the fourth quarter. James Kacmac is
Speaker 2: a technology analystic Clockwise Capital.
Speaker 4: They have to write the ship somehow because the growth is.
Speaker 7: Just anemic, and one way to do that is to find.
Speaker 8: A way to grow.
Speaker 9: Again, or you can fix things on the expense side.
Speaker 7: And it looks like they're giving up on the former
Speaker 7: and going toward the.
Speaker 2: Ladder to that point. Clockwise Capital James Cackmac notes Intel
Speaker 2: plans to slash fifteen thousand jobs well Nathan.
Speaker 5: Shares of Amazon are down more than eight percent after
Speaker 5: years of cutting costs. Investors are sern the company is
Speaker 5: returning to a boom in spending. In an earnings call,
Speaker 5: Amazon's CEO Andy Jasse warn profits will have to take
Speaker 5: a back seat so the company can invest in artificial intelligence.
Speaker 6: It remain very bullish on the medium to long term
Speaker 6: impact of AI and every business we know and can imagine.
Speaker 10: The progress may not be one straight line for companies.
Speaker 10: Generative AI especially is quite.
Speaker 6: Iterative, and companies have to build muscle around the best
Speaker 6: way to solve actual customer problems.
Speaker 5: Amazon CEO Andy Jasse projected operating income for the current
Speaker 5: quarter will be eleven and a half billion to fifteen
Speaker 5: billion dollars. Analysts, on average, we're looking for fifteen point
Speaker 5: seven billion.
Speaker 2: Well, meantime, Karen, Apple is bucking the sell off trend
Speaker 2: somewhat this morning. The shares are down, but only by
Speaker 2: two tenths of one percent. Apple's predicting its new artificial
Speaker 2: intelligence features will spur iPhone upgrades in coming months and
Speaker 2: will help the company re emerge from a sales slowdown
Speaker 2: that hit its business in China, especially hard. Mark German
Speaker 2: covers Apple for Bloomberg News.
Speaker 11: Apple intelligence is really the big upgrade on the iPhone
Speaker 11: that they're trying to sell this year. They talked about
Speaker 11: AI so much on this call. I haven't heard them
Speaker 11: talk about AI so much since their Developer's conference in June,
Speaker 11: or maybe ever.
Speaker 2: Bloomberg technology reporter Mark German says, Apple projects total sales
Speaker 2: in the September quarter we'll grow at about five percent.
Speaker 2: Wall Street projected a four percent clip.
Speaker 5: Well, Nathan, we'll have more on the market sell off
Speaker 5: in tech earnings in a few minutes. But now President
Speaker 5: Biden is celebrating a major win in global diplomacy. The
Speaker 5: President was a joint based Andrews outside Washington last night
Speaker 5: as Wall Street General reporter Evan Gershkevich, former Marine Paul Wheeland,
Speaker 5: and journalist al su Kermasheva came home. The three Americans
Speaker 5: are part of the largest prisoner swamp with Russia since
Speaker 5: the Cold War, and President Biden said it couldn't have
Speaker 5: gone done without support from US allies, and what I said.
Speaker 2: Lines has making difference as we stepped up, but took a.
Speaker 3: Chance for that mattered a love.
Speaker 5: President and Biden was joined on the tarmac by Vice
Speaker 5: President and new presumptive Democratic nominee Kamala Harris.
Speaker 12: I'm very thankful for our president and what he has
Speaker 12: done for his entire career, put in particular as it
Speaker 12: relates to these families of these.
Speaker 5: Individuals, Vice President Harris, as the exchange did not come
Speaker 5: easily and returned for the Americans and other prisoners. Russia
Speaker 5: won the release of Adam Krazakov, who had been serving
Speaker 5: life in Germany for killing a Chechen separatist. Germany had
Speaker 5: long resisted Krasakov's release.
Speaker 2: Well now Karen, President Biden faces a diplomatic challenge in
Speaker 2: the Middle East. The President told Israeli Prime Minister Benjamin
Speaker 2: Natan Yahoo to agree to a cease fire with Hamas
Speaker 2: the two leaders spoke yesterday, Biden did pledge to support
Speaker 2: Israel against renewed threats from Iran and allied militias like
Speaker 2: Hesbolat Nathan.
Speaker 5: The UMSS has recognized Venezuelan opposition presidential candidate at Mundo
Speaker 5: Gonzalez in the disputed election, and Bloomberg's Ed Baxter has
Speaker 5: that story from US.
Speaker 10: Secretary of State Anthony Blincoln says it is clear to
Speaker 10: the United States and most importantly to the Venezuelan people,
Speaker 10: that Gonzalez has won the most votes in the July
Speaker 10: twenty eighth election. Blencoln goes on to say that the
Speaker 10: United States congratulates Gonzales on a successful campaign and hopes
Speaker 10: that discussions on a respectful, peaceful transition will occur. Opposition
Speaker 10: leader Maria Corrina Machavo meanwhile says she is in hiding,
Speaker 10: fearing for her life. Ed Baxter Bloomberg.
Speaker 2: Radio, Okay, and thank you. As for US politics, we
Speaker 2: have a winner in a primary race from more than
Speaker 2: a month ago. A Trump back to candidate has defeated
Speaker 2: the chairman of the Conservative House Freedom Caucus in Virginia's
Speaker 2: fifth congressional district. State Senator and former Navy seal John
Speaker 2: McGuire has been declared the winner over Congressman Bob Good
Speaker 2: by just three hundred and seventy votes out of nearly
Speaker 2: sixty three thousand casts. Before the recount, McGuire's lead was
Speaker 2: three hundred and seventy four votes.
Speaker 5: Nathan and Vice President Kamala Harris's camp Haynes, says she's
Speaker 5: raised a record at three hundred and ten million dollars
Speaker 5: in July. Harris's hall more than doubles nearly one hundred
Speaker 5: and thirty nine million Trump Rays last month. Harris's campaign
Speaker 5: says grassroots donors giving less than two hundred dollars accounted
Speaker 5: for ninety four percent of the four point two million
Speaker 5: donations that were received. Time Now for look at some
Speaker 5: of the other stories making news in New York and
Speaker 5: around the world. For that, we're joined by Bloomberg's John Tucker, John,
Speaker 5: Good morning, and.
Speaker 9: Good Morning Karen. Two NYPD officers are recovering after they
Speaker 9: were shot while responding to a robbery on Manhattan's Lower
Speaker 9: east Side. Police say a suspect armed with a gun
Speaker 9: began robbing women and snatching their purses in a Magine
Speaker 9: parlor at ninety one Canal Street yesterday afternoon. Nearby officers
Speaker 9: heard the screams and responded as the suspect fled. Police
Speaker 9: identified him as twenty two year old Joshua Dorset. While
Speaker 9: the officers caught the suspect, the NYPD says he fired
Speaker 9: one shot that struck both sergeants. New York Mayor Eric Adams.
Speaker 13: The suspect who actually visited his probation officer this morning,
Speaker 13: is in custody at this time, and I want to
Speaker 13: be clear our NYPDU officers did not fire on the suspect.
Speaker 9: One sergeant was hit in the upper thigh, the other
Speaker 9: was grazed on his leg. A sheriff is answering more
Speaker 9: questions after a deputy shot and killed a woman in
Speaker 9: her home last month, Sonya Massey called nine to one
Speaker 9: one about a possible intruder. Before the deputies arrived in Springfield, Illinois,
Speaker 9: Sheriff Jack Campbell was asked about now ex deputy Sean
Speaker 9: Grayson having worked for his several police agencies in a
Speaker 9: short time.
Speaker 7: There was nothing in his background that would disqualify him
Speaker 7: from being a police officer in Illinois. In fact, he'd
Speaker 7: been hired by five other agencies and he'd been certified
Speaker 7: by the Save Illinois six different times to be a
Speaker 7: police officer here, So it was nothing in his background
Speaker 7: and they would prevent him from being.
Speaker 4: A police officer.
Speaker 9: Sheriff Campbell sends. When the department failed Massie, he won't resign.
Speaker 9: Dozens of homes have been destroyed by wildfire in Larimer County, Colorado.
Speaker 9: This woman lives in the town of Drake and says
Speaker 9: she's gotten confirmation her home burned to the ground.
Speaker 2: So I've lost what.
Speaker 14: Is the best community in this the ninny world, and
Speaker 14: I'm very excit about That's that's very sad to me
Speaker 14: that we can no longer call that home.
Speaker 9: She says. She evacuated Monday while her husband had already
Speaker 9: left town for work. The blaze one of almost one
Speaker 9: hundred large fires ranging across the West, and more than
Speaker 9: one hundred video game performers picketed in front of the
Speaker 9: Warner Brothers Studios in Los Angeles to protest against what
Speaker 9: they call an unwillingness from top gaming companies to protect
Speaker 9: actors against the unregulated use of artificial Intelligence, Global news
Speaker 9: twenty four hours a day, whenever you want it with
Speaker 9: Bloomberg News. Now, I'm John, This is Bloomberg. Nathan and Karen.
Speaker 5: John, thank you timed off the Bloomberg Sports Update. But
Speaker 5: John Stashauer, John.
Speaker 8: Good morning, Good morning, Karen, Katie Ledecky and Simone Biles
Speaker 8: Olympic goats. They've got the hardware to prove it. The
Speaker 8: Decky part of the eight hundred freestyle realite team that
Speaker 8: won the silver medal, giving her thirteen career medals, most
Speaker 8: of any American female athlete files in competition that was
Speaker 8: closer than expected, still won the gold and the gymnastics
Speaker 8: all around her seventh career medal. Fourth Golds, who has
Speaker 8: won six World Championship Soony Lee, who won the gold
Speaker 8: three years ago this time took the bronze. But the
Speaker 8: Olympics so often about unknown athletes, like the four rowers
Speaker 8: that won the first US gold medal in that event
Speaker 8: since nineteen sixty and the women's fencing team winning a
Speaker 8: first ever gold for the US. It's the third career
Speaker 8: gold for Lee Keefer Yankee tonight started a nine game
Speaker 8: homestand against the Blue Jays Yanks touch would be better
Speaker 8: on the roads, had a five to one road trip.
Speaker 8: Tonight is Jazz Chisholm. His first game of the Pinstripes.
Speaker 8: He just had a pair of two home run games.
Speaker 8: He's also been playing a surprisingly solid third base. Here's
Speaker 8: Aaron Judge on his new teammate.
Speaker 15: Yes, a guy to played a new position for the
Speaker 15: first time his career, and you know, some big, big
Speaker 15: games for us, and it looks like he's been playing there,
Speaker 15: you know, his whole life. So it's he brings a
Speaker 15: great energy. He runs a base as well. We kind
Speaker 15: of like having him right in the middle of the
Speaker 15: lineup and it's doing some damage getting on base. It's
Speaker 15: spin a big part.
Speaker 8: Marcus Strouman on the Mount tonight. He has struggled lately.
Speaker 8: The Mets visit the Angels, who just got worried that
Speaker 8: they're so often injured. Star Mic Trap will miss the
Speaker 8: rest of the season with a knee injury. White Sox
Speaker 8: tonight bring their seventeen game losing streight to Minnesota. The
Speaker 8: Evan one since July tenthday earlier this season, lost thirteen
Speaker 8: in a row. First NFL preseason game in Canada, high
Speaker 8: the Bears beat the Texans twenty one to seventeen the
Speaker 8: Hall of Fame game. It was stopped in the third
Speaker 8: quarter due to severe weather. First looked at the NFL's
Speaker 8: new rule on kickoffs. Seven all time greats will be
Speaker 8: inducted in the Hall tomorrow. Dashell Er Bloomberg Sports carry.
Speaker 3: Nathan coast to coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 3: and around the world on Bloomberg dot Com and the
Speaker 3: Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm
Speaker 3: Nathan Hager.
Speaker 2: We are watching a global stock sell off this morning,
Speaker 2: led by big tech in this country after earnings disappointment
Speaker 2: from three tech giants. Joining us for some analysis as
Speaker 2: Matthew Bloxham, technology analysts for Bloomberg Intelligence Mad Good morning.
Speaker 2: Let's start with Intel. It is among the biggest laggards
Speaker 2: on the stock exchange this morning. Is Intel on the
Speaker 2: outside looking in when it comes to the AI race?
Speaker 16: Yeah, I think you very much here. Oh, you know,
Speaker 16: perhaps other way. You know, it's definitely on the wrong
Speaker 16: side of the AI opportunity right now. And you know,
Speaker 16: kind of quite a bleak update they gave yesterday, you know,
Speaker 16: kind of weak margins in the quarter and a very
Speaker 16: muted outlook for revenue growth next quarter, you know, probably
Speaker 16: twelve and a half to thirteen and ANUR billion dollars
Speaker 16: versus the market expectation of fourteen. But I think it
Speaker 16: goes beyond, you know, just the next quarter. What they're
Speaker 16: doing on downsizing the business and taking out more than
Speaker 16: fifteen percent of heads and cutting their gross capex by
Speaker 16: something like twenty percent or more. You know, it is
Speaker 16: a really clear signal that the forward market opportunity for
Speaker 16: them is substantially smaller than they had been expecting. And
Speaker 16: that's you know, a reflection of I guess kind of
Speaker 16: getting a little bit caught out by maybe the pace
Speaker 16: at which the geneesh Fai opportunity has taken off, and obviously,
Speaker 16: you know all of that opportunity occurring primarily to in video.
Speaker 16: You know, Intel used to be, you know, kind of
Speaker 16: really strong in the server market, and you know, all
Speaker 16: of those server investments, well most of them now really
Speaker 16: going towards AI powered technology, which is not a not
Speaker 16: a market that they're kind of really strong in.
Speaker 2: Well, it's turned to Amazon, where they've been focused on
Speaker 2: cost cuts for quite a few months now, Andy Jasse,
Speaker 2: the CEO, saying that he's gonna put profits on the
Speaker 2: back burner to really ramp up AI spending. How much
Speaker 2: catch up does Amazon have to play with some of
Speaker 2: the other players in the AI space.
Speaker 16: Yeah, I don't think they're playing catch up. They're just
Speaker 16: kind of matching all of the other big heavyweights, you
Speaker 16: dollar for dollar. You know, the market leader in cloud
Speaker 16: service has been investing for some time in AI. And
Speaker 16: you know, we've had a very familiar story from all
Speaker 16: of the big tech rivel So, you know, I think Microsoft,
Speaker 16: think Meta, Think Alphabet, Google, They're all investing huge billions
Speaker 16: of dollars to build their AI technology platforms for the
Speaker 16: mid to long term. You know, the revenue is coming through,
Speaker 16: but it's not coming through that quickly. But they all
Speaker 16: know that if they don't develop their technology platforms today,
Speaker 16: they'll miss out on a big show of the market
Speaker 16: in the midterm. And that's essentially what they're doing.
Speaker 2: I mean, while Apple is kind of bucking the overall
Speaker 2: sell off trend trading a little changed right now. They've
Speaker 2: delayed the rollout of their AI features, But is that
Speaker 2: going to be enough to spur this upgrade cycle that
Speaker 2: so many have been talking about.
Speaker 16: Well, yeah, I mean, you know, the the the AI
Speaker 16: features Apple Intelligence will start to come through in iPhone
Speaker 16: sixteen and so I think you know that that is
Speaker 16: really the next big focus for investors with Apple. If
Speaker 16: we looked at the quarter they just reported, iPhone stalls
Speaker 16: were still down slightly about one percent, but o there's
Speaker 16: a big improvement on the previous quarter. And obviously what
Speaker 16: they need to do, given that's you know, give or
Speaker 16: take fifty percent of their revenues, is get iPhone sales
Speaker 16: growing again. And you know, the product's refresh cycle and
Speaker 16: I guess a smartphone upgrade supercycle is what they need.
Speaker 16: And you know, the big hope is that intelligence or
Speaker 16: artificial intelligence features on the device and their slightly differentiated,
Speaker 16: unique way of offering AI is going to be enough
Speaker 16: to kind of get more customers to to upgrade.
Speaker 17: This is Bloomberg Daybreak Today, your morning brief on the
Speaker 17: stories making news from Wall Street to Washington and beyond.
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Speaker 2: I'm Nathan Hager and.
Speaker 5: I'm Karen Moscow. Join us again tomorrow morning for all
Speaker 5: the news you need to start your day right here
Speaker 5: on Bloomberg Daybreak