Speaker 1: Live from the Bloomberg Interactor Berger Studios. Is that Bloomberg
Speaker 1: day Break for Friday, February three, coming up today. US
Speaker 1: future slide after disappointing earnings from Apple, Amazon, and Alphabet,
Speaker 1: A busy week for the economy culminates in today's monthly
Speaker 1: jobs report. Kathy Wood makes a bold claim on investing
Speaker 1: in tech and potential changes at Nordstrom sees shares at
Speaker 1: the department store surge. The suspected Chinese by balloon has
Speaker 1: been spotted over US airspace. Plus the killer of a
Speaker 1: New Jersey councilwoman is still on the loops. I'm Michael
Speaker 1: blar More Ahead, I'm John stas Shower. In sports, the
Speaker 1: next held on for a two point winning home over Miami.
Speaker 1: Julius Randall named at NBA All Star. That's All's train
Speaker 1: ahead on Bloomberg day Break on Bloomberg eleven three, on
Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh
Speaker 1: six one, Boston, Bloomberg nine sixties, and Francisco Sirius x
Speaker 1: M one nineteen and around the world on Bloomberg Radio
Speaker 1: dot Com and via The Bloomberg Business. Good Morning, I'm
Speaker 1: Nathan Hagar. And I'm kerin Moscow. Here are the stories
Speaker 1: we're following today. We begin with earnings from a trio
Speaker 1: of tech heavyweights weighing on markets this morning. Let's start
Speaker 1: with Apple. The shares are down more than three percent
Speaker 1: after the company reported its worst holiday performance in four years.
Speaker 1: Supply chain issues and an economic slump are being blamed
Speaker 1: for weaker iPhone sales. Here CEO Tim Cook, as a
Speaker 1: result of a challenging environment, our revenue was down five
Speaker 1: percent year over year. We remain confident in and focused
Speaker 1: on the long term opportunities. Apple CEO Tim Cook says
Speaker 1: there are signs of a rebound in China. He also
Speaker 1: says production problems are subsiding. Shares of Amazon also taking
Speaker 1: a hit this morning, Nathan, They're down to five and
Speaker 1: a half per cent. The company is protecting lackluster revenue
Speaker 1: for the current quarter. That's causing rory that the company's
Speaker 1: e commerce business has stalled. Sales growth has slowed in
Speaker 1: the cloud computing division. CEO Andy Jasse says curbing spending
Speaker 1: is his top goal. Probably the number one priority that
Speaker 1: I spend time with the team on is reducing our
Speaker 1: costs to serve in our operations network. Amazon CEO Andy
Speaker 1: Jazz started a new round of job cuts last month
Speaker 1: and that will eliminate eighteen thousand positions and rounding out
Speaker 1: the Big three. Karen. Shares of Alphabet are also falling
Speaker 1: down about four percent after fourth quarter earnings missed estimates.
Speaker 1: Let's get the details live with Bloomberg. Steve Rappaport. Good morning, Steve,
Speaker 1: Good morning, Nathan, and Karen. Google's parent company reported fourth
Speaker 1: quarter sales of sixty three point one billion dollars a
Speaker 1: million dollars shy of expectations based on data compiled by Bloomberg.
Speaker 1: The lackluster results come as Google's core advertising businesses under
Speaker 1: scrutiny from the Justice Department. It also faces competition from
Speaker 1: emerging players such as Open Ai, s Chat, GPT. Alphabet
Speaker 1: acknowledges the challenges ahead Live in New York. I'm Steve Rappaport,
Speaker 1: Bloomberg Daybreak. A right, Steve. Thanks. So we're also seeing
Speaker 1: earnings disappointments outside of big tech. Shares a ford Or
Speaker 1: down more than six percent after profit fell short of estimates.
Speaker 1: For it has been ramping up electric vehicle production while
Speaker 1: struggling to make money on its plug in models. We
Speaker 1: have a flip side Karen. Shares of Nordstrom are surging
Speaker 1: this morning. They're up thirty percent. Bloomberg News has learned
Speaker 1: Meme stock investor Ryan Cohen has built a sizeable steak
Speaker 1: in the department. Short chain. Sources say Cohen's trying to
Speaker 1: replace at least one of Nordstrom's directors. Yesterday was a
Speaker 1: big one for Mark Zuckerberg. By the end of the day,
Speaker 1: Nathan the Facebook CEO, saw his fortune jump by more
Speaker 1: than twelve billion dollars, and we get the story from
Speaker 1: Bloomberg Shirley Pellett. The surge came after he vowed twenty
Speaker 1: three will be quote the year of efficiency for his
Speaker 1: social media giant Metal platforms. The thirty eight year old
Speaker 1: CEO is rebounding from his worst year on record, with
Speaker 1: his wealth tumbling from a peak of one two billion
Speaker 1: dollars in September of one. According to Bloomberg Data, Zuckerberg
Speaker 1: now has a net worth of about sixty nine point
Speaker 1: eight billion dollars in New York. Charlie Pellette Bloomberg Daybreak,
Speaker 1: Thanks Charlie. Well, another billionaire has lost a massive amount
Speaker 1: of wealth this week. Got Tomadonni's Empire has now lost
Speaker 1: more than half its market value since that report from
Speaker 1: Hindenburg Research. The short seller accuses a Donnia fraud. So far,
Speaker 1: more than a hundred eighteen billion dollars have been raised
Speaker 1: from the value of the ten stocks tied to a
Speaker 1: Donny back. Here in the US, Nathan, a big name
Speaker 1: on Wall Street, is weighing in on last year's text
Speaker 1: sell off. Our investment CEO Cathy would and midst two
Speaker 1: was a horrific year for her flagship innovation et F,
Speaker 1: but Wood is making a bold claim about her fund's
Speaker 1: long term potential. Oh, by the way, we are the
Speaker 1: new Nastack, which is one of the ways we were
Speaker 1: trying to convey look if you want to look at
Speaker 1: the future and truly disruptive innovation the way the Nasdack,
Speaker 1: the NASDAC performed in the eighties and nineties, that's where
Speaker 1: we went and our investments. Kathy Wood says she still
Speaker 1: thinks bitcoin will top a million dollars in the next decade.
Speaker 1: She spoke with Carol Masser and Tim Stenovic on Bloomberg
Speaker 1: Business Week and catch the show weekdays at two pm
Speaker 1: on Bloomberg Radio or watch it live on YouTube. Let's
Speaker 1: turn away from tech specifically now, Karen and focus on
Speaker 1: the broader economy. It's been all about the Fed this week,
Speaker 1: but today it's about jobs. We get the government's monthly
Speaker 1: employment report for January this morning, and we get a
Speaker 1: preview now from Bloomberg Economics correspondent Michael McKee. Payroll of
Speaker 1: forecasts ranged from one thousand all the way up to
Speaker 1: three hundred twenty thousand, but most are skewed to the downside.
Speaker 1: The number that matters most will be average hourly earnings.
Speaker 1: The Fed sees wage pressures as the biggest inflation danger.
Speaker 1: Now economists see unemployment continuing to be the dog that
Speaker 1: didn't mark. Just a small tick up in the jobless
Speaker 1: rate forecast. Michael McKee, Bloomberg Daybreak. All right, Michael, thank you.
Speaker 1: And in Europe this week, the Bank of England height
Speaker 1: rates once again, but now the central Bank is signaling
Speaker 1: they may be nearing the end of tightening. That's the
Speaker 1: message markets took away from Andrew Bailey, but now he's
Speaker 1: sounding a little less sure. The b o A governor
Speaker 1: sat down for an interview with Bloomberg's Francy Laquax after
Speaker 1: this latest policy decision. We all kind of react to
Speaker 1: the information and the evidence that we see. We're not
Speaker 1: on We're not we haven't pre announced an intention because
Speaker 1: we have reached a point in as I've said for
Speaker 1: I think we have started to turn a corner that's encouraging.
Speaker 1: There's a long way to go and there are a
Speaker 1: lot of risks. Policymakers led by Andrew Bailey, voted seven
Speaker 1: to two to raise interest rates by fifty basis points.
Speaker 1: It's thirty two degrees in Central Park. It's gonna stay
Speaker 1: cold today. Early highs in the thirties. Temperatures will fall
Speaker 1: through the afternoon. By tonight, we're gonna be down in
Speaker 1: the single digits. But with the wind chill, it's gonna
Speaker 1: feel even colder. And it's gonna look at some of
Speaker 1: the other stories making news in New York and around
Speaker 1: the world with Bloomberg's Michael Barr, Good morning, Michael, Good morning, Nathan.
Speaker 1: The US and China are facing a number of diplomatic
Speaker 1: and geopolitical prompt Bloomberg said, backs to report, you can
Speaker 1: add a Chinese high altitude spy balloon. The Pentagon says
Speaker 1: for several days it has made its way over the
Speaker 1: northern US. Pentagon spokesman Brigadier General Pat Ryder says a
Speaker 1: Pentagon has decided not to shoot it down. Balloon is
Speaker 1: currently traveling at an altitude well above commercial air traffic
Speaker 1: and does not present a military or physical threat to
Speaker 1: people on the ground. Instances of this kind of balloon
Speaker 1: activity have been observed previously over the past several years,
Speaker 1: and writer says they will not say where it is
Speaker 1: now in San Francisco. I'm at Baxter Bloomberg Daybreak. Investigators
Speaker 1: in say or Ville, New Jersey, so far have no
Speaker 1: motive and no arrests in the shocking apparent targeted murder
Speaker 1: of a local councilwoman. Thirty year old Unitst One four,
Speaker 1: who had only recently taken office, was discovered dead Wednesday
Speaker 1: night in her SUV of multiple shot gun wounds. The
Speaker 1: shot was sitting. She was shot while sitting behind the
Speaker 1: wheel of her vehicle. House Republicans vote to kick Democratic
Speaker 1: Congresswoman Iohan Omar off the Foreign Affairs Committee. Signing your
Speaker 1: past comments viewed as anti submittee. House Speaker Kevin McCarthy
Speaker 1: says their comments while serving on the committee could threaten
Speaker 1: national security. It's not right, We were right in her action,
Speaker 1: and she can serve on other committees, but it puts
Speaker 1: America in jeopardy and I'm not going to do that
Speaker 1: under my watch. However, Democratic Leader Hakim Jeffreys of New
Speaker 1: York says Omar has sense apologize for those comments and
Speaker 1: called out some House Republicans for their own comments, saying
Speaker 1: that they are still remaining on committees fact stone matter
Speaker 1: with this extreme Maga Republican majority. Hypocrisy is not a
Speaker 1: constraint to their behavior and shamelessness. They believe is a
Speaker 1: superpower and that will all be exposed for the American teacher.
Speaker 1: Representative Jeffrey says the vote is payback for when Democrats
Speaker 1: were in charge of the House. Natural gas prices skyrocketed
Speaker 1: in New York and Boston has bitter cold as sends
Speaker 1: that boost a man for the heating fuel. Next day
Speaker 1: gas deliverieson to a section of the Iroquois gas pipeline
Speaker 1: that Hall's Canadian gas into New York traded at a
Speaker 1: twenty year high. Global News powered by more than journalists
Speaker 1: and analysts and over a hundred twenty countries. Michael Barr
Speaker 1: and this is Bloomberg. Nathan thank you, Michael. Time now
Speaker 1: for our Bloomberg Sports up tape for I tries stayed out.
Speaker 1: He Good morning, John Stanish, Morning Nathan. The Knicks have
Speaker 1: lost a lot of home games this season. They've blown
Speaker 1: a lot of leads. At the Garden, they led Miami
Speaker 1: by five points with five seconds ago and nearly lost
Speaker 1: the Heat hit a three pointer that a Nick turnover,
Speaker 1: and Tyler Hero was nearly the hero, but he missed
Speaker 1: the game winning three point and the Knicks survived one
Speaker 1: of six one four. R J. Barrett, who in that
Speaker 1: overtime recent loss of the Lakers, sat on the bench,
Speaker 1: this time, led the Knicks with thirty points. Julius Randall
Speaker 1: scored twenty three. His season has been much better than
Speaker 1: it was a year ago, and Randall has been named
Speaker 1: to play in the upcoming to the NBA All Star Game.
Speaker 1: Jalen Brunson did not make it. Brunson didn't play last night.
Speaker 1: He was outsick. There was a nasty fight in the
Speaker 1: game between Memphis and Cleveland. Dylan Brooks and Donovan Mitchell
Speaker 1: went at it and nearly spilled into the stands. Another
Speaker 1: went for Denver, who leads the West seventeenth triple double
Speaker 1: for Nicola. Yoki Jana's sons and the Compost scored fifty
Speaker 1: four and a comeback win from Milwaukee. It's his third
Speaker 1: fifty point game of the past month. Lebron James at
Speaker 1: twenty six in a Laker when he now needs sixty
Speaker 1: three points to become the NBA's all time leading score.
Speaker 1: It is Super Bowl fifty seven. It is the first
Speaker 1: where both quarterbacks Patrick Mahomes and Jalen Hurts are African American.
Speaker 1: In Kansas City, Mahomes was asked about the significance, but
Speaker 1: be on the world stage, Um, and uh, have two
Speaker 1: black quarterbacks starting the Super Bowl. I think it's special.
Speaker 1: And I've learned more and more about the history of
Speaker 1: the black quarterbacks since I've been in this league, and uh,
Speaker 1: the guys that came before me and Jalen set the
Speaker 1: stage for this, and now I'm just glad that we
Speaker 1: can kind of set the stage for guys that are
Speaker 1: kids that are coming up now. Doug Williams was the
Speaker 1: first Super Bowl black qub That was thirty five years ago.
Speaker 1: John Stashwer Bloomberg Sports Live from coast to coast, from
Speaker 1: New York to San Francisco, Boston to Washington, d C
Speaker 1: nationwide on Sirius, xamp, the Bloomberg Business app, and Bloomberg
Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar,
Speaker 1: and we are wrapping up a busy week for tech
Speaker 1: earnings with a wave of disappointing results for the big
Speaker 1: three a's in the sector. That would be Apple, Amazon,
Speaker 1: and Google parent Alphabet. The latest sign that the economic
Speaker 1: slowdown is crimping demand in just about every business that
Speaker 1: these tech companies encompass. Let's get more insights this morning
Speaker 1: from Dan Ives, managing director and senior analyst at web
Speaker 1: Bush Securities, who has been a pretty bullish voice on
Speaker 1: tech for some time. Dan, it's always great to speak
Speaker 1: with you. We'll start with the company that you cover,
Speaker 1: specifically Apple. The worst holiday quarter for the iPhone maker
Speaker 1: in four years. Does that come as a surprise to you. Look,
Speaker 1: I think it's really supply chain driven. I mean this
Speaker 1: was not a demand issue. Was supply because of the
Speaker 1: China COVID lockdown. They're seeing acceleration going into this quarter.
Speaker 1: I think that really is going to take the street
Speaker 1: by surprise and a positive And this was better than
Speaker 1: see it overall. It's interesting though, because it wasn't so
Speaker 1: long ago that exposure to China and the supply chain
Speaker 1: issues there was seen as a pretty significant headwind for Apple,
Speaker 1: and it's been trying to unwind some of those supply chains.
Speaker 1: Do you think it's going to be a tailwind with
Speaker 1: China reopening now? Well, I think you hit the nail
Speaker 1: on the head. You're now starting to see a town
Speaker 1: and emerged and and Tim Cook could have easily just
Speaker 1: used a macro card and be massively conservative instead talked
Speaker 1: about China accelerating and demand of course caution, but still firm.
Speaker 1: That's not what the bears were open for. And that's
Speaker 1: why I believe this the stock and you know, I'd
Speaker 1: be shocked if it's not in the green by the
Speaker 1: end of the day. Well, is there a possibility though,
Speaker 1: given the economic headwinds that we're still seeing a lot
Speaker 1: of consumers pulling back on some of their spending, that
Speaker 1: consumer demand could crater in the months to come. Yeah, Look,
Speaker 1: I think consumer then definitely could soften. And I think
Speaker 1: that's that's already factor into this stock. And I think
Speaker 1: too all these names, but you're talking about to come
Speaker 1: bearing a two hundred fifty million iPhones that haven't been
Speaker 1: upgrade in four years. That's why they have a golden
Speaker 1: installed base, which makes them much more of a rocket
Speaker 1: Gibraltar stock in this iCal economic storm. All right, let's
Speaker 1: turn to Amazon. Do you see that as a rocket
Speaker 1: Gibraltar stock as well? I mean they've been cutting costs
Speaker 1: pretty significantly even before they reported earnings. Yeah, Amazon, when
Speaker 1: they were spending money like nineties rock stars, and they
Speaker 1: need the car costs now and that's what they're doing here.
Speaker 1: And I think it's a tail of two cities. Cloud
Speaker 1: continues to be strong for them, softening a bit like Microsoft,
Speaker 1: but that is really a pillar strength the e commerce piece,
Speaker 1: you know, that's still coming off, you know of what
Speaker 1: was really almost a hangover coming off of covid in
Speaker 1: terms of what they're seeing from growth. That's something they're
Speaker 1: going to continue to grap with over the coming quarters.
Speaker 1: How concerned should investors be that Andy Jesse is talking
Speaker 1: about a slow down in growth for Amazon Web services?
Speaker 1: Is the cloud sector for Amazon starting to lose some
Speaker 1: ground against some of the competitors like Microsoft, Azure in
Speaker 1: Google Cloud. Look, I think it's really redymen. It's what's
Speaker 1: happening with Microsoft, they're gaining incremental share versus Amazon, and
Speaker 1: you're also seeing Google as well as IBM and Oracle
Speaker 1: and Cloud is slowing a bit, but when you look
Speaker 1: at growth, you're still talking off a massive numbers. So
Speaker 1: I think this is something that that's really dig tested.
Speaker 1: Street overall was expecting much more arm and getting You've
Speaker 1: got softness, but nothing I think that anyone thought would
Speaker 1: be ultimately be seen when it comes to Amazon holding
Speaker 1: up better than expected on Cloud, and in terms of Alphabet,
Speaker 1: the Google parent a modest miss there, but another sign
Speaker 1: of the tough digital ad environment that we've been talking
Speaker 1: about as we've made our way through tech season. How
Speaker 1: does Alphabet get through this rough patch? Yeah? I mean
Speaker 1: YouTube are clearly softened a bit, and I think for
Speaker 1: them it's really about navigating these digital advertising headwinds. But
Speaker 1: they're cutting costs, cutting costs significantly. That's something the street
Speaker 1: wants to see because you're preserving margin, preserving profitability, and
Speaker 1: anythink just so much bad news is baking to these
Speaker 1: tech names. You can't take a step back on Alphabet, Amazon,
Speaker 1: of course, Apple better than fear, and I think these
Speaker 1: stocks ultimately rally from here about thirty seconds here, Dan,
Speaker 1: how long do you think in the tech sector is
Speaker 1: going to need to be in this retrenchment mode. Look,
Speaker 1: I think these companies were spending just assuming hyper growth
Speaker 1: is going to continue. The clock struck midnight, and now
Speaker 1: they're ripping the bandit off and cutting costs. But I
Speaker 1: think now we're starting to get to a point where
Speaker 1: over the coming months of the soft land he does
Speaker 1: take cold these companies actually start hiring leader in the year,
Speaker 1: And I think that's really the narrative here. Tech growth
Speaker 1: is not falling off a cliff, it's softening. That's better
Speaker 1: than feared, especially with the army getting like your expectations
Speaker 1: going tech earning seed. This is Bloomberg day Break Today,
Speaker 1: your morning brief on the story is making news from
Speaker 1: Wall Street to Washington and beyond. Look for us on
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Speaker 1: Street time on Bloomberg eleven three oh in New York,
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Speaker 1: morning for all the news you need to start your
Speaker 1: day right here on Bloomberg Daybreak