Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm John Tucker. Here
Speaker 2: are these stories we're following today.
Speaker 3: John will have much more on the markets and the
Speaker 3: latest reaction to Microsoft and Meta earnings, but we begin
Speaker 3: this morning with sports. The Los Angeles Dodgers have been
Speaker 3: crowned World Series champions thanks to a colossal meltdown by
Speaker 3: the New York Yankees. Let's get the latest with Bloomberg's
Speaker 3: John stash Hour. Good morning, John, Good morning Nathan.
Speaker 4: The Yankees looked very much like they were going to
Speaker 4: be heading back to Los Angeles Game six tomorrow, fifth
Speaker 4: inning and they led five to nothing. They had hit
Speaker 4: three home runs and the Dodgers hadn't had a hit.
Speaker 4: But then came a series of Yankee blunders.
Speaker 5: And it's line to son of field charging Judge mc
Speaker 5: hey dropped the ball and throws to second. I'm too late,
Speaker 5: so that'd be an era on Judge, the first time
Speaker 5: I've seen him.
Speaker 4: Dubble ball wfan. Then came an air on Anthony Volpi,
Speaker 4: and then what should have been the third out without
Speaker 4: a run I've scored, but Garrett Cole failed to cover
Speaker 4: first base. Dodgers was scored five hundred and runs to
Speaker 4: tie the game, took the lead of the eighth one
Speaker 4: seven to six, and won the World Series four games
Speaker 4: to one. John stashed Awa Bloomberg Sports.
Speaker 3: All right, John, thank you, and you'll be back in
Speaker 3: a few minutes for more details, as well as postgame
Speaker 3: reaction from Yankee Stadium and Nathan.
Speaker 2: Let's turn to the markets, who are seeing negative reaction
Speaker 2: to earnings from two tech heavyweights. Nasdaq futures down one percent.
Speaker 2: Let's start with Microsoft. Those shares downright now three point
Speaker 2: seven percent of the pre market profit and revenue did
Speaker 2: top analyst forecast, with the software maker forecast slower quarterly
Speaker 2: cloud revenue growth. Analysts say that reflects struggles to bring
Speaker 2: data centers online fast enough to keep up with demand
Speaker 2: for artificial intelligence services. Still, the Microsoft CEO Sancha Todella
Speaker 2: was optimistic on the company conference call.
Speaker 6: All up, our AI business is on track to surpass
Speaker 6: an annual revenue run rate of ten billion dollars next quarter,
Speaker 6: which will make it the fastest business in our history
Speaker 6: to reach this.
Speaker 2: Microsoft CEO Sancha Adellas's capital expenditures in the first quarter
Speaker 2: were at fourteen point nine billion dollars. That's of fifty
Speaker 2: percent from a year earlier, at exceeded analyst expectations.
Speaker 3: Of course, John, We're also watching shares of Meta platforms.
Speaker 3: They're down four percent in the pre market. The Facebook
Speaker 3: owner is warning of worsening losses as CEO Mark Zuckerberg
Speaker 3: ramps up heavy investments in AI and other futuristic technologies.
Speaker 3: We get the story from Bloomberg's Charlie Pellett.
Speaker 1: It continues a year's long tug of war between the
Speaker 1: company's long term bets and the core advertising business that
Speaker 1: provides the vast majority of Meta's revenue. Zuckerberg warned investors
Speaker 1: that Meta will continue to spend significantly on infrastructure and
Speaker 1: other projects like the Metaverse and AI powered glasses efforts.
Speaker 1: He believes our core to the company's future that will
Speaker 1: be supported by the ads business, which is not generating
Speaker 1: the kind of momentum Wall Street expected in New York.
Speaker 1: Charlie Pellett, Bloomberg Radio, All.
Speaker 2: Right, thanks Charlie, and the high tech earnings they continue
Speaker 2: this afternoon. Apple and the Amazon both report and after
Speaker 2: the close it regular trading today. Let's go to preview
Speaker 2: now from Bloomberg's Tom Busby.
Speaker 7: At Apple, the keeper investors sales of its latest smartphone,
Speaker 7: the AI capable iPhone sixteen, as well as its latest
Speaker 7: air pods and smart watches. Investors will also want to
Speaker 7: hear the latest guidance on its AI initiatives, called Apple Intelligence.
Speaker 7: At Amazon, the big focus will be on its cloud
Speaker 7: computing unit and whether all the money is spent on
Speaker 7: AI technology is going to boost revenues at Amazon Web Services.
Speaker 7: Also of note its advertising business and any update on
Speaker 7: efforts to speed up delivery times ahead of the busy
Speaker 7: holiday shopping season and how it's battling rivals like Walmart, Target,
Speaker 7: and Timu, Tom Busby, Bloomberg.
Speaker 3: Radio, Okay, tom thank You. Some other stocks on the
Speaker 3: move following earning. Shares of Roku are down fourteen percent.
Speaker 3: The maker of streaming TV set top boxes says it's
Speaker 3: no longer going to report the number of households that
Speaker 3: use its products each quarter. Robinhood share They're down more
Speaker 3: than ten and a half percent. The brokerage reported revenue
Speaker 3: that missed analyst estimates, and eBay is down more than
Speaker 3: nine percent. The e commerce company projected holiday sales that
Speaker 3: fell short of analyst expectations and Nathan.
Speaker 2: In Asia, the Bank of Japan kept its benchmark interest
Speaker 2: rate unchanged. BOJ also maintaining its view that it's on
Speaker 2: track to achieve its inflation target. That does suggest a
Speaker 2: possible rate hike in the coming months. The end strengthening
Speaker 2: this morning of about six tenths of a percent, just
Speaker 2: over one fifty two.
Speaker 3: Let's turn to the latest now on the presidential race, John.
Speaker 3: As the campaign heads into its final stretch, Donald Trump
Speaker 3: is seizing on a comment from President Biden where he
Speaker 3: seemed to call Trump supporters garbage.
Speaker 8: How do you like my garbage truck?
Speaker 5: This truck is an honor of Kamala and Joe Biden.
Speaker 3: The former president rolled into Wisconsin aboard a white garbage
Speaker 3: truck with the words make America great Again in red
Speaker 3: on the side. Trump says he doesn't know the comedian
Speaker 3: who sparked the garbage flat by calling Puerto Rico a
Speaker 3: floating island of garbage at last weekend's Madison Square Garden rally.
Speaker 3: President Biden has tried to clarify his remarks, but Trump
Speaker 3: leaned into them at a rally in Green Bay, Wisconsin
Speaker 3: last night.
Speaker 5: My response to Joe and Kamala is very simple. You
Speaker 5: can't lead America if you don't love Americans.
Speaker 3: That's true and from the President. Trump was joined at
Speaker 3: the Green Bay rally by a hometown legend, retired Packers
Speaker 3: quarterback Brett farre.
Speaker 2: Okamala Harris held her own Star instud At rally in Madison, Wisconsin,
Speaker 2: featuring indie rock musicians from the band's Mumford and Sons,
Speaker 2: and the National The Vice President urging voters to turn
Speaker 2: the page on Donald Trump.
Speaker 6: Folks are exhausted and want it to stop the pointing fingers.
Speaker 2: It is time that we start locking.
Speaker 4: Arms together as a people who rise and hall together.
Speaker 2: Vice President Harris also held e Vinci in Harrisburg, Pennsylvania
Speaker 2: ad Raleigh, North Carolina. Earlier, she tried to distance herself
Speaker 2: from President Biden's comments.
Speaker 4: Of all, he clarified his comments, but let me be Claire.
Speaker 4: I songly disagree with any criticism of people based on.
Speaker 2: Who they vote for, Kamala Harris, noting that the President
Speaker 2: said he meant to say Trump supporters rhetoric is garbage. Today,
Speaker 2: both the Vice president and former President Trump will be
Speaker 2: in the sun Belt with dueling campaign stops in Arizona
Speaker 2: and Nevada, which is five days to go until the election.
Speaker 3: As for President Biden, he is sending mediators to Israel
Speaker 3: to try to broke a truce in Lebanon Prime Minister
Speaker 3: Benjamin Natanya, who met with AIDS late Tuesday to discuss
Speaker 3: the latest proposal. Today, he'll talk about it with the
Speaker 3: White House's senior Middle East envoys, Brett McGirk and Almos Hokstein.
Speaker 3: The new plan calls for a sixty day pause in
Speaker 3: fighting to ensure Hesbola doesn't receive any more weapons from
Speaker 3: Iran and moves farther away from the northern Israeli border.
Speaker 3: Hesbola hasn't signaled yet whether it's interested.
Speaker 2: All right, Thanks Nathan. Five seven on Wall Street and
Speaker 2: it's tundown for a look at some of the other
Speaker 2: stories making news in New York and around the world.
Speaker 2: Dan for that, We're joined by Bloomberg's Michael Parr. Michael,
Speaker 2: good morning, Good morning, John. Defense Secretary Lloyd Austin says
Speaker 2: North Korean troops have been outfitted with Russian uniforms and equipment,
Speaker 2: and there is a good likelihood that those troops will
Speaker 2: be involved in the war in Ukraine. Austin says Ukraine
Speaker 2: can use US provided weapons.
Speaker 8: Ukrainian soldiers have the right to defend themselves and they
Speaker 8: will do that with the weapons that we provided and
Speaker 8: others have provided.
Speaker 9: That's to be expected. Secretary Austin met at the Pentagon
Speaker 9: with South Korea's Defense Minister Washington says thousands of North
Speaker 9: Korean fighters could be on the front lines within weeks.
Speaker 9: North Korea has launched a new intercontinental ballistic missile, in
Speaker 9: its first test in almost a year of a weapon
Speaker 9: design to threaten the US mainland and occurring days ahead
Speaker 9: of the US election. North Korean media said lead to
Speaker 9: Kim joan un ordered. Today's missilet has to show North
Speaker 9: Korea's resolve to respond to its enemies move. There is
Speaker 9: new information about the man police in the Portland, Oregon
Speaker 9: area are looking for after several fires in ballot drop boxes.
Speaker 9: Mike Benner with the Portland Police.
Speaker 10: We can describe the suspect that we believe is connected
Speaker 10: to all three cases as a white male between the
Speaker 10: ages of thirty and forty years old, faulding or very
Speaker 10: short hair, medium to thin build, dark shirt, thin face.
Speaker 9: Police spokesman Benner says they believe their suspect may intend
Speaker 9: to continue targeted attacks. It is now a top priority
Speaker 9: for the FBI. New potential path to freedom for the
Speaker 9: Menendez brothers. Days after announcing that he's asking the court
Speaker 9: to be re sentenced the brothers, Los Angeles DA George
Speaker 9: Gaskin is requesting clemency from California's governor, but freedom is
Speaker 9: still not guaranteed for the brothers. Managing partner of the
Speaker 9: Conchrane firm, lawyer CHAWNA. Lloyd, says Gaskin's clemency request is
Speaker 9: a big deal for the brothers.
Speaker 11: When we're talking about an application for clemency, we know
Speaker 11: that with having the DA support is important because if
Speaker 11: the DA actually believes that you should have your sentence community,
Speaker 11: that's going to go strongly with the governor when he
Speaker 11: considers it.
Speaker 9: Lawyer Channe Lloyd spoke to ABC Global News twenty four
Speaker 9: hours a day and whatever you want it with Bloomberg
Speaker 9: News Now. I'm Michael Barr, this is Bloomberg.
Speaker 2: John, Thank you, Michael, and the Princess to five ten
Speaker 2: on Wall Street turned out for the Bloomberg Sports Update
Speaker 2: bront to you by Tri State. Out of half of
Speaker 2: that we bring in John staff sharer John Good morning.
Speaker 4: Yeah, good morning John. World Series Game five in the
Speaker 4: Bronx had a great Yankee start, the Aaron Judge hom
Speaker 4: run that everyone's been waiting for. He went back to
Speaker 4: back with Jazz Chisholm John Carlos Stanton his seventh homber
Speaker 4: of the postseason. The Yanks led the Dodgers five to
Speaker 4: nothing in La was hitless against Garrett called top of
Speaker 4: the fifth and eight may go down as the most
Speaker 4: nightmarish in Yankee history. Continued it took place in the
Speaker 4: World Series. Judge, who had earlier made a sensational catch
Speaker 4: against the wall, dropped the easiest of fly balls. Anthony
Speaker 4: Volpi had a throwing air and Cole then had two strikeouts,
Speaker 4: one of Joey Oltani and when Woki Vitz had a
Speaker 4: ground ball, the first looked at the inning was over
Speaker 4: coal filled the cover. Dodgers would score five hundred runs
Speaker 4: to tie the game, and two more in the eighth
Speaker 4: inning to go ahead. Bottom of the ninth came the
Speaker 4: celebration swinging a.
Speaker 12: Miss and the Dodgers are World Series champions. They storm
Speaker 12: out of the dugout third base side and mob walker Buehler.
Speaker 4: The ESPN first championship for LA since twenty twenty that
Speaker 4: was COVID. This is the first not in a shortened
Speaker 4: season since nineteen eighty eight. Afterwards, Iron Brewin obviously asked
Speaker 4: about that fifth inning, including the play at first base.
Speaker 13: Mookie hits the squibver so Riz couldn't really run through it,
Speaker 13: you know, he kind of had to stay there and
Speaker 13: make sure he secured the catch because of the spin
Speaker 13: on the ball. And I think just you know, Garrett
Speaker 13: just all that he went through in that inning, kind
Speaker 13: of spent and kind of almost working his way out
Speaker 13: of it, just didn't react quick enough to get over.
Speaker 4: Boon did win his first pennant as a Yankee manager,
Speaker 4: but not the World Series. Nicks in Miami got forty
Speaker 4: four points from Karl Anthony. Towns beat the Heat one
Speaker 4: seventeen one oh six, next one in Memphis one nineteen
Speaker 4: one oh six. Celtics first loss. It came in overtime
Speaker 4: at Indiana. Devil's won six nothing. Islanders lost to nothing
Speaker 4: in the two and six Jets host the six and
Speaker 4: two Houston Texans tonight, John Stash they were Bloomberg Sports.
Speaker 4: Nathan and Jones.
Speaker 8: Coast to Coast on Bloomberg Radio nationwide on Sirius XM
Speaker 8: and around the world on Bloomberg dot Com and the
Speaker 8: Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm
Speaker 8: Nathan Hager.
Speaker 3: We are seeing a disappointed investor reaction this morning to
Speaker 3: the two latest tech companies to report earnings. Microsoft as
Speaker 3: forecasting slower revenue growth in the cloud, while Meta Platforms
Speaker 3: plans to keep spending big on artificial intelligence. Now, the
Speaker 3: question for both companies is whether the payoff from AI
Speaker 3: is coming fast enough for more. We're joined by Dan
Speaker 3: I've senior equity research analyst at web Bush Securities.
Speaker 1: Dan, Good morning.
Speaker 3: A lot of the focus, of course on Microsoft is
Speaker 3: on the forecast for Azure cloud growth. Is too much
Speaker 3: data center demand? Too much of a good thing?
Speaker 2: Good morning.
Speaker 14: Hey, Look, I think this is one where the robust
Speaker 14: growth on cloud and AI is actually continuing. So I
Speaker 14: think any sort of negative knee jerk reaction I think
Speaker 14: is the wrong move because it just shows the momentums continuing.
Speaker 14: We're buyers and Microsoft here. It shows the AI revolution
Speaker 14: hitting the next stage of growth.
Speaker 3: Does Microsoft, though, need to show more when it comes
Speaker 3: to the buildout look.
Speaker 14: I think this is one where investors are always concerned
Speaker 14: that they're just there's going to be one quarter that
Speaker 14: you don't see it, But it's actually the opposite, and
Speaker 14: Microsoft has such good visibility. You're looking at massive growth.
Speaker 14: I mean, asure is something that it's two times bigger
Speaker 14: than anyone thought it was two years ago. So you
Speaker 14: start to see this all playing through. I think this
Speaker 14: is just the beginning of the next phase of the
Speaker 14: Microsoft growth story.
Speaker 3: So where is Microsoft positioned at this point now? After
Speaker 3: the positive earnings that we saw from a Google parent alphabet,
Speaker 3: particularly in Google Cloud, is Google nipping at Microsoft's as
Speaker 3: your heels right now?
Speaker 14: Look, I think this is a big enough otion from
Speaker 14: more than three boots in terms of Microsoft, Amazon, and Google.
Speaker 14: Google has definitely starting gain know al momentum, and I
Speaker 14: think that's clearly playing out. But that's not necessarily negative
Speaker 14: from Microsoft because the growth continues to be ultimating high
Speaker 14: than the street expected. You love knee jerk reactions in
Speaker 14: all these quarters. Meta of course Microsoft, but I think
Speaker 14: you look out twenty four hours a week from now.
Speaker 14: These stocks are up from here, I don't think they're down.
Speaker 3: Let's get two meta platforms and this warning from Mark Zuckerberg,
Speaker 3: the CEO, that the spending is going to continue and
Speaker 3: continue in a big way when it comes not just
Speaker 3: to AI but the metaverse. Still, how do you see
Speaker 3: Mark Zuckerberg's strategy when it comes to the future of meta.
Speaker 14: Look, it is the right strategy. They are doub one
Speaker 14: down on a transformational and technology once in forty years,
Speaker 14: and I think for meta we could say sort of
Speaker 14: split hairs and some gonna be worried about spending, But
Speaker 14: that's the right move because it's the next group platform
Speaker 14: for meta and that's why. Look, Stock's been rocket ship.
Speaker 14: You'll have some of these knee jerk reactions, but this
Speaker 14: story is not done. It's actually just the next wave
Speaker 14: that will be AI fueled.
Speaker 3: The next wave is coming after the close today when
Speaker 3: we hear from Apple and Amazon. Of course there's going
Speaker 3: to be a lot of attention on Amazon Web services
Speaker 3: now as well. What's the setup for the rest of
Speaker 3: big tech earnings in our final minute, Dan.
Speaker 14: Yeah, I think you set up strong from Amazon. I
Speaker 14: think investors are not expecting too much, but yet I
Speaker 14: think actually Aws that's another part of the growth story,
Speaker 14: just like we saw the Google and Microsoft. So I
Speaker 14: think we're bullsh on Amazon, but there's a proof of
Speaker 14: quarter for them. For Apple. Look, it's all about showing
Speaker 14: iPhone sixteen. This is the beginning of that AI driven supercycle.
Speaker 14: It's not happened overnight, but when Cook talks, everyone listens.
Speaker 14: It's all about China. I think it's going to be positive.
Speaker 14: And you end the week, you look back at tech earnings,
Speaker 14: you feel bullish in terms of AI, and I think
Speaker 14: where this border market's going.
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