WEBVTT - Dodgers Win World Series; Microsoft & Meta Shares Fall

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Good morning, I'm Nathan Hager and I'm John Tucker. Here

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

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<v Speaker 3>John will have much more on the markets and the

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<v Speaker 3>latest reaction to Microsoft and Meta earnings, but we begin

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<v Speaker 3>this morning with sports. The Los Angeles Dodgers have been

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<v Speaker 3>crowned World Series champions thanks to a colossal meltdown by

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<v Speaker 3>the New York Yankees. Let's get the latest with Bloomberg's

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<v Speaker 3>John stash Hour. Good morning, John, Good morning Nathan.

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<v Speaker 4>The Yankees looked very much like they were going to

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<v Speaker 4>be heading back to Los Angeles Game six tomorrow, fifth

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<v Speaker 4>inning and they led five to nothing. They had hit

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<v Speaker 4>three home runs and the Dodgers hadn't had a hit.

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<v Speaker 4>But then came a series of Yankee blunders.

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<v Speaker 5>And it's line to son of field charging Judge mc

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<v Speaker 5>hey dropped the ball and throws to second. I'm too late,

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<v Speaker 5>so that'd be an era on Judge, the first time

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<v Speaker 5>I've seen him.

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<v Speaker 4>Dubble ball wfan. Then came an air on Anthony Volpi,

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<v Speaker 4>and then what should have been the third out without

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<v Speaker 4>a run I've scored, but Garrett Cole failed to cover

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<v Speaker 4>first base. Dodgers was scored five hundred and runs to

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<v Speaker 4>tie the game, took the lead of the eighth one

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<v Speaker 4>seven to six, and won the World Series four games

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<v Speaker 4>to one. John stashed Awa Bloomberg Sports.

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<v Speaker 3>All right, John, thank you, and you'll be back in

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<v Speaker 3>a few minutes for more details, as well as postgame

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<v Speaker 3>reaction from Yankee Stadium and Nathan.

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<v Speaker 2>Let's turn to the markets, who are seeing negative reaction

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<v Speaker 2>to earnings from two tech heavyweights. Nasdaq futures down one percent.

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<v Speaker 2>Let's start with Microsoft. Those shares downright now three point

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<v Speaker 2>seven percent of the pre market profit and revenue did

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<v Speaker 2>top analyst forecast, with the software maker forecast slower quarterly

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<v Speaker 2>cloud revenue growth. Analysts say that reflects struggles to bring

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<v Speaker 2>data centers online fast enough to keep up with demand

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<v Speaker 2>for artificial intelligence services. Still, the Microsoft CEO Sancha Todella

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<v Speaker 2>was optimistic on the company conference call.

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<v Speaker 6>All up, our AI business is on track to surpass

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<v Speaker 6>an annual revenue run rate of ten billion dollars next quarter,

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<v Speaker 6>which will make it the fastest business in our history

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<v Speaker 6>to reach this.

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<v Speaker 2>Microsoft CEO Sancha Adellas's capital expenditures in the first quarter

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<v Speaker 2>were at fourteen point nine billion dollars. That's of fifty

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<v Speaker 2>percent from a year earlier, at exceeded analyst expectations.

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<v Speaker 3>Of course, John, We're also watching shares of Meta platforms.

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<v Speaker 3>They're down four percent in the pre market. The Facebook

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<v Speaker 3>owner is warning of worsening losses as CEO Mark Zuckerberg

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<v Speaker 3>ramps up heavy investments in AI and other futuristic technologies.

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<v Speaker 3>We get the story from Bloomberg's Charlie Pellett.

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<v Speaker 1>It continues a year's long tug of war between the

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<v Speaker 1>company's long term bets and the core advertising business that

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<v Speaker 1>provides the vast majority of Meta's revenue. Zuckerberg warned investors

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<v Speaker 1>that Meta will continue to spend significantly on infrastructure and

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<v Speaker 1>other projects like the Metaverse and AI powered glasses efforts.

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<v Speaker 1>He believes our core to the company's future that will

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<v Speaker 1>be supported by the ads business, which is not generating

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<v Speaker 1>the kind of momentum Wall Street expected in New York.

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<v Speaker 1>Charlie Pellett, Bloomberg Radio, All.

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<v Speaker 2>Right, thanks Charlie, and the high tech earnings they continue

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<v Speaker 2>this afternoon. Apple and the Amazon both report and after

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<v Speaker 2>the close it regular trading today. Let's go to preview

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<v Speaker 2>now from Bloomberg's Tom Busby.

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<v Speaker 7>At Apple, the keeper investors sales of its latest smartphone,

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<v Speaker 7>the AI capable iPhone sixteen, as well as its latest

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<v Speaker 7>air pods and smart watches. Investors will also want to

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<v Speaker 7>hear the latest guidance on its AI initiatives, called Apple Intelligence.

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<v Speaker 7>At Amazon, the big focus will be on its cloud

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<v Speaker 7>computing unit and whether all the money is spent on

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<v Speaker 7>AI technology is going to boost revenues at Amazon Web Services.

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<v Speaker 7>Also of note its advertising business and any update on

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<v Speaker 7>efforts to speed up delivery times ahead of the busy

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<v Speaker 7>holiday shopping season and how it's battling rivals like Walmart, Target,

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<v Speaker 7>and Timu, Tom Busby, Bloomberg.

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<v Speaker 3>Radio, Okay, tom thank You. Some other stocks on the

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<v Speaker 3>move following earning. Shares of Roku are down fourteen percent.

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<v Speaker 3>The maker of streaming TV set top boxes says it's

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<v Speaker 3>no longer going to report the number of households that

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<v Speaker 3>use its products each quarter. Robinhood share They're down more

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<v Speaker 3>than ten and a half percent. The brokerage reported revenue

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<v Speaker 3>that missed analyst estimates, and eBay is down more than

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<v Speaker 3>nine percent. The e commerce company projected holiday sales that

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<v Speaker 3>fell short of analyst expectations and Nathan.

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<v Speaker 2>In Asia, the Bank of Japan kept its benchmark interest

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<v Speaker 2>rate unchanged. BOJ also maintaining its view that it's on

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<v Speaker 2>track to achieve its inflation target. That does suggest a

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<v Speaker 2>possible rate hike in the coming months. The end strengthening

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<v Speaker 2>this morning of about six tenths of a percent, just

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<v Speaker 2>over one fifty two.

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<v Speaker 3>Let's turn to the latest now on the presidential race, John.

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<v Speaker 3>As the campaign heads into its final stretch, Donald Trump

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<v Speaker 3>is seizing on a comment from President Biden where he

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<v Speaker 3>seemed to call Trump supporters garbage.

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<v Speaker 8>How do you like my garbage truck?

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<v Speaker 5>This truck is an honor of Kamala and Joe Biden.

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<v Speaker 3>The former president rolled into Wisconsin aboard a white garbage

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<v Speaker 3>truck with the words make America great Again in red

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<v Speaker 3>on the side. Trump says he doesn't know the comedian

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<v Speaker 3>who sparked the garbage flat by calling Puerto Rico a

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<v Speaker 3>floating island of garbage at last weekend's Madison Square Garden rally.

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<v Speaker 3>President Biden has tried to clarify his remarks, but Trump

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<v Speaker 3>leaned into them at a rally in Green Bay, Wisconsin

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<v Speaker 3>last night.

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<v Speaker 5>My response to Joe and Kamala is very simple. You

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<v Speaker 5>can't lead America if you don't love Americans.

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<v Speaker 3>That's true and from the President. Trump was joined at

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<v Speaker 3>the Green Bay rally by a hometown legend, retired Packers

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<v Speaker 3>quarterback Brett farre.

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<v Speaker 2>Okamala Harris held her own Star instud At rally in Madison, Wisconsin,

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<v Speaker 2>featuring indie rock musicians from the band's Mumford and Sons,

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<v Speaker 2>and the National The Vice President urging voters to turn

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<v Speaker 2>the page on Donald Trump.

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<v Speaker 6>Folks are exhausted and want it to stop the pointing fingers.

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<v Speaker 2>It is time that we start locking.

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<v Speaker 4>Arms together as a people who rise and hall together.

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<v Speaker 2>Vice President Harris also held e Vinci in Harrisburg, Pennsylvania

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<v Speaker 2>ad Raleigh, North Carolina. Earlier, she tried to distance herself

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<v Speaker 2>from President Biden's comments.

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<v Speaker 4>Of all, he clarified his comments, but let me be Claire.

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<v Speaker 4>I songly disagree with any criticism of people based on.

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<v Speaker 2>Who they vote for, Kamala Harris, noting that the President

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<v Speaker 2>said he meant to say Trump supporters rhetoric is garbage. Today,

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<v Speaker 2>both the Vice president and former President Trump will be

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<v Speaker 2>in the sun Belt with dueling campaign stops in Arizona

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<v Speaker 2>and Nevada, which is five days to go until the election.

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<v Speaker 3>As for President Biden, he is sending mediators to Israel

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<v Speaker 3>to try to broke a truce in Lebanon Prime Minister

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<v Speaker 3>Benjamin Natanya, who met with AIDS late Tuesday to discuss

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<v Speaker 3>the latest proposal. Today, he'll talk about it with the

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<v Speaker 3>White House's senior Middle East envoys, Brett McGirk and Almos Hokstein.

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<v Speaker 3>The new plan calls for a sixty day pause in

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<v Speaker 3>fighting to ensure Hesbola doesn't receive any more weapons from

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<v Speaker 3>Iran and moves farther away from the northern Israeli border.

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<v Speaker 3>Hesbola hasn't signaled yet whether it's interested.

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<v Speaker 2>All right, Thanks Nathan. Five seven on Wall Street and

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<v Speaker 2>it's tundown for a look at some of the other

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<v Speaker 2>stories making news in New York and around the world.

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<v Speaker 2>Dan for that, We're joined by Bloomberg's Michael Parr. Michael,

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<v Speaker 2>good morning, Good morning, John. Defense Secretary Lloyd Austin says

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<v Speaker 2>North Korean troops have been outfitted with Russian uniforms and equipment,

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<v Speaker 2>and there is a good likelihood that those troops will

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<v Speaker 2>be involved in the war in Ukraine. Austin says Ukraine

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<v Speaker 2>can use US provided weapons.

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<v Speaker 8>Ukrainian soldiers have the right to defend themselves and they

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<v Speaker 8>will do that with the weapons that we provided and

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<v Speaker 8>others have provided.

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<v Speaker 9>That's to be expected. Secretary Austin met at the Pentagon

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<v Speaker 9>with South Korea's Defense Minister Washington says thousands of North

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<v Speaker 9>Korean fighters could be on the front lines within weeks.

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<v Speaker 9>North Korea has launched a new intercontinental ballistic missile, in

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<v Speaker 9>its first test in almost a year of a weapon

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<v Speaker 9>design to threaten the US mainland and occurring days ahead

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<v Speaker 9>of the US election. North Korean media said lead to

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<v Speaker 9>Kim joan un ordered. Today's missilet has to show North

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<v Speaker 9>Korea's resolve to respond to its enemies move. There is

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<v Speaker 9>new information about the man police in the Portland, Oregon

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<v Speaker 9>area are looking for after several fires in ballot drop boxes.

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<v Speaker 9>Mike Benner with the Portland Police.

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<v Speaker 10>We can describe the suspect that we believe is connected

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<v Speaker 10>to all three cases as a white male between the

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<v Speaker 10>ages of thirty and forty years old, faulding or very

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<v Speaker 10>short hair, medium to thin build, dark shirt, thin face.

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<v Speaker 9>Police spokesman Benner says they believe their suspect may intend

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<v Speaker 9>to continue targeted attacks. It is now a top priority

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<v Speaker 9>for the FBI. New potential path to freedom for the

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<v Speaker 9>Menendez brothers. Days after announcing that he's asking the court

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<v Speaker 9>to be re sentenced the brothers, Los Angeles DA George

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<v Speaker 9>Gaskin is requesting clemency from California's governor, but freedom is

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<v Speaker 9>still not guaranteed for the brothers. Managing partner of the

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<v Speaker 9>Conchrane firm, lawyer CHAWNA. Lloyd, says Gaskin's clemency request is

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<v Speaker 9>a big deal for the brothers.

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<v Speaker 11>When we're talking about an application for clemency, we know

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<v Speaker 11>that with having the DA support is important because if

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<v Speaker 11>the DA actually believes that you should have your sentence community,

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<v Speaker 11>that's going to go strongly with the governor when he

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<v Speaker 11>considers it.

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<v Speaker 9>Lawyer Channe Lloyd spoke to ABC Global News twenty four

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<v Speaker 9>hours a day and whatever you want it with Bloomberg

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<v Speaker 9>News Now. I'm Michael Barr, this is Bloomberg.

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<v Speaker 2>John, Thank you, Michael, and the Princess to five ten

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<v Speaker 2>on Wall Street turned out for the Bloomberg Sports Update

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<v Speaker 2>bront to you by Tri State. Out of half of

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<v Speaker 2>that we bring in John staff sharer John Good morning.

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<v Speaker 4>Yeah, good morning John. World Series Game five in the

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<v Speaker 4>Bronx had a great Yankee start, the Aaron Judge hom

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<v Speaker 4>run that everyone's been waiting for. He went back to

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<v Speaker 4>back with Jazz Chisholm John Carlos Stanton his seventh homber

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<v Speaker 4>of the postseason. The Yanks led the Dodgers five to

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<v Speaker 4>nothing in La was hitless against Garrett called top of

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<v Speaker 4>the fifth and eight may go down as the most

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<v Speaker 4>nightmarish in Yankee history. Continued it took place in the

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<v Speaker 4>World Series. Judge, who had earlier made a sensational catch

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<v Speaker 4>against the wall, dropped the easiest of fly balls. Anthony

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<v Speaker 4>Volpi had a throwing air and Cole then had two strikeouts,

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<v Speaker 4>one of Joey Oltani and when Woki Vitz had a

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<v Speaker 4>ground ball, the first looked at the inning was over

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<v Speaker 4>coal filled the cover. Dodgers would score five hundred runs

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<v Speaker 4>to tie the game, and two more in the eighth

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<v Speaker 4>inning to go ahead. Bottom of the ninth came the

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<v Speaker 4>celebration swinging a.

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<v Speaker 12>Miss and the Dodgers are World Series champions. They storm

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<v Speaker 12>out of the dugout third base side and mob walker Buehler.

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<v Speaker 4>The ESPN first championship for LA since twenty twenty that

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<v Speaker 4>was COVID. This is the first not in a shortened

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<v Speaker 4>season since nineteen eighty eight. Afterwards, Iron Brewin obviously asked

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<v Speaker 4>about that fifth inning, including the play at first base.

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<v Speaker 13>Mookie hits the squibver so Riz couldn't really run through it,

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<v Speaker 13>you know, he kind of had to stay there and

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<v Speaker 13>make sure he secured the catch because of the spin

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<v Speaker 13>on the ball. And I think just you know, Garrett

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<v Speaker 13>just all that he went through in that inning, kind

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<v Speaker 13>of spent and kind of almost working his way out

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<v Speaker 13>of it, just didn't react quick enough to get over.

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<v Speaker 4>Boon did win his first pennant as a Yankee manager,

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<v Speaker 4>but not the World Series. Nicks in Miami got forty

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<v Speaker 4>four points from Karl Anthony. Towns beat the Heat one

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<v Speaker 4>seventeen one oh six, next one in Memphis one nineteen

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<v Speaker 4>one oh six. Celtics first loss. It came in overtime

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<v Speaker 4>at Indiana. Devil's won six nothing. Islanders lost to nothing

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<v Speaker 4>in the two and six Jets host the six and

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<v Speaker 4>two Houston Texans tonight, John Stash they were Bloomberg Sports.

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<v Speaker 4>Nathan and Jones.

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<v Speaker 8>Coast to Coast on Bloomberg Radio nationwide on Sirius XM

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<v Speaker 8>and around the world on Bloomberg dot Com and the

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<v Speaker 8>Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm

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<v Speaker 8>Nathan Hager.

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<v Speaker 3>We are seeing a disappointed investor reaction this morning to

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<v Speaker 3>the two latest tech companies to report earnings. Microsoft as

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<v Speaker 3>forecasting slower revenue growth in the cloud, while Meta Platforms

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<v Speaker 3>plans to keep spending big on artificial intelligence. Now, the

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<v Speaker 3>question for both companies is whether the payoff from AI

0:12:02.120 --> 0:12:04.280
<v Speaker 3>is coming fast enough for more. We're joined by Dan

0:12:04.360 --> 0:12:07.280
<v Speaker 3>I've senior equity research analyst at web Bush Securities.

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<v Speaker 1>Dan, Good morning.

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<v Speaker 3>A lot of the focus, of course on Microsoft is

0:12:11.280 --> 0:12:16.400
<v Speaker 3>on the forecast for Azure cloud growth. Is too much

0:12:16.720 --> 0:12:19.040
<v Speaker 3>data center demand? Too much of a good thing?

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<v Speaker 2>Good morning.

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<v Speaker 14>Hey, Look, I think this is one where the robust

0:12:24.440 --> 0:12:28.000
<v Speaker 14>growth on cloud and AI is actually continuing. So I

0:12:28.040 --> 0:12:31.680
<v Speaker 14>think any sort of negative knee jerk reaction I think

0:12:31.760 --> 0:12:35.880
<v Speaker 14>is the wrong move because it just shows the momentums continuing.

0:12:36.559 --> 0:12:39.880
<v Speaker 14>We're buyers and Microsoft here. It shows the AI revolution

0:12:40.000 --> 0:12:41.400
<v Speaker 14>hitting the next stage of growth.

0:12:41.720 --> 0:12:45.080
<v Speaker 3>Does Microsoft, though, need to show more when it comes

0:12:45.160 --> 0:12:47.679
<v Speaker 3>to the buildout look.

0:12:47.760 --> 0:12:51.760
<v Speaker 14>I think this is one where investors are always concerned

0:12:52.080 --> 0:12:54.400
<v Speaker 14>that they're just there's going to be one quarter that

0:12:54.440 --> 0:12:58.000
<v Speaker 14>you don't see it, But it's actually the opposite, and

0:12:58.080 --> 0:13:03.320
<v Speaker 14>Microsoft has such good visibility. You're looking at massive growth.

0:13:03.840 --> 0:13:07.040
<v Speaker 14>I mean, asure is something that it's two times bigger

0:13:07.040 --> 0:13:10.480
<v Speaker 14>than anyone thought it was two years ago. So you

0:13:10.520 --> 0:13:13.160
<v Speaker 14>start to see this all playing through. I think this

0:13:13.360 --> 0:13:15.280
<v Speaker 14>is just the beginning of the next phase of the

0:13:15.320 --> 0:13:16.560
<v Speaker 14>Microsoft growth story.

0:13:17.000 --> 0:13:21.240
<v Speaker 3>So where is Microsoft positioned at this point now? After

0:13:21.520 --> 0:13:26.479
<v Speaker 3>the positive earnings that we saw from a Google parent alphabet,

0:13:26.520 --> 0:13:31.880
<v Speaker 3>particularly in Google Cloud, is Google nipping at Microsoft's as

0:13:31.920 --> 0:13:32.880
<v Speaker 3>your heels right now?

0:13:33.600 --> 0:13:37.080
<v Speaker 14>Look, I think this is a big enough otion from

0:13:37.120 --> 0:13:40.880
<v Speaker 14>more than three boots in terms of Microsoft, Amazon, and Google.

0:13:41.240 --> 0:13:44.040
<v Speaker 14>Google has definitely starting gain know al momentum, and I

0:13:44.080 --> 0:13:47.679
<v Speaker 14>think that's clearly playing out. But that's not necessarily negative

0:13:47.679 --> 0:13:52.200
<v Speaker 14>from Microsoft because the growth continues to be ultimating high

0:13:52.240 --> 0:13:55.719
<v Speaker 14>than the street expected. You love knee jerk reactions in

0:13:55.840 --> 0:13:59.840
<v Speaker 14>all these quarters. Meta of course Microsoft, but I think

0:14:00.080 --> 0:14:03.520
<v Speaker 14>you look out twenty four hours a week from now.

0:14:03.679 --> 0:14:05.920
<v Speaker 14>These stocks are up from here, I don't think they're down.

0:14:06.480 --> 0:14:11.880
<v Speaker 3>Let's get two meta platforms and this warning from Mark Zuckerberg,

0:14:11.920 --> 0:14:15.040
<v Speaker 3>the CEO, that the spending is going to continue and

0:14:15.120 --> 0:14:17.800
<v Speaker 3>continue in a big way when it comes not just

0:14:17.840 --> 0:14:21.480
<v Speaker 3>to AI but the metaverse. Still, how do you see

0:14:21.640 --> 0:14:26.040
<v Speaker 3>Mark Zuckerberg's strategy when it comes to the future of meta.

0:14:26.600 --> 0:14:29.320
<v Speaker 14>Look, it is the right strategy. They are doub one

0:14:29.400 --> 0:14:33.360
<v Speaker 14>down on a transformational and technology once in forty years,

0:14:33.560 --> 0:14:36.080
<v Speaker 14>and I think for meta we could say sort of

0:14:36.120 --> 0:14:38.680
<v Speaker 14>split hairs and some gonna be worried about spending, But

0:14:38.720 --> 0:14:42.239
<v Speaker 14>that's the right move because it's the next group platform

0:14:42.240 --> 0:14:45.160
<v Speaker 14>for meta and that's why. Look, Stock's been rocket ship.

0:14:45.600 --> 0:14:48.120
<v Speaker 14>You'll have some of these knee jerk reactions, but this

0:14:48.160 --> 0:14:51.240
<v Speaker 14>story is not done. It's actually just the next wave

0:14:51.320 --> 0:14:52.720
<v Speaker 14>that will be AI fueled.

0:14:53.720 --> 0:14:56.880
<v Speaker 3>The next wave is coming after the close today when

0:14:56.920 --> 0:14:59.840
<v Speaker 3>we hear from Apple and Amazon. Of course there's going

0:14:59.880 --> 0:15:02.280
<v Speaker 3>to be a lot of attention on Amazon Web services

0:15:02.320 --> 0:15:05.600
<v Speaker 3>now as well. What's the setup for the rest of

0:15:05.640 --> 0:15:07.640
<v Speaker 3>big tech earnings in our final minute, Dan.

0:15:08.040 --> 0:15:10.640
<v Speaker 14>Yeah, I think you set up strong from Amazon. I

0:15:10.680 --> 0:15:13.280
<v Speaker 14>think investors are not expecting too much, but yet I

0:15:13.280 --> 0:15:17.000
<v Speaker 14>think actually Aws that's another part of the growth story,

0:15:17.120 --> 0:15:19.040
<v Speaker 14>just like we saw the Google and Microsoft. So I

0:15:19.080 --> 0:15:22.080
<v Speaker 14>think we're bullsh on Amazon, but there's a proof of

0:15:22.200 --> 0:15:25.640
<v Speaker 14>quarter for them. For Apple. Look, it's all about showing

0:15:25.800 --> 0:15:29.560
<v Speaker 14>iPhone sixteen. This is the beginning of that AI driven supercycle.

0:15:29.920 --> 0:15:34.160
<v Speaker 14>It's not happened overnight, but when Cook talks, everyone listens.

0:15:34.320 --> 0:15:37.119
<v Speaker 14>It's all about China. I think it's going to be positive.

0:15:37.480 --> 0:15:41.080
<v Speaker 14>And you end the week, you look back at tech earnings,

0:15:41.320 --> 0:15:43.400
<v Speaker 14>you feel bullish in terms of AI, and I think

0:15:43.440 --> 0:15:44.840
<v Speaker 14>where this border market's going.

0:15:46.520 --> 0:15:49.800
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