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Speaker 1: News when you wanted with Bloomberg News. Now I'm Doug Prisoner.

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Speaker 1: We begin in South Korea, where President Trump and Chinese

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Speaker 1: President chi Jinping our meeting at this hour. Both leaders

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Speaker 1: are expected to hammer out details on a trade framework agreement,

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Speaker 1: and that would include China pausing its export controls on

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Speaker 1: rare earth minerals and at the same time resuming the

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Speaker 1: purchase of US soybeans, all of this in exchange for

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Speaker 1: lower tariffs. Before the meeting, President Trump praised President She.

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Speaker 2: It's a great honor to be with a friend of

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Speaker 2: mine really for a long time now, if you think

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Speaker 2: about it, the very very distinguished and respected president of China,

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Speaker 2: and we will be having some discussions. I think we've

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Speaker 2: already agreed to a lot of things, and we'll agree

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Speaker 2: to some more right now. But President She is a

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Speaker 2: great leader of a great country.

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Speaker 1: Trump went on to say that the two sides have

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Speaker 1: already agreed on a lot of things, and from the

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Speaker 1: China side, President She said he was again ready to

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Speaker 1: work with President Trump to build a foundation for US

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Speaker 1: China relations. We move next to the Federal Reserve. Today,

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Speaker 1: as expected, policymakers cut their key interest rate by a

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Speaker 1: quarter point. Fedchair Jay Powell said risk to inflation are

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Speaker 1: tilted to the upside, while risk to employment tilted to

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Speaker 1: the downside.

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Speaker 3: Although official employment data for September are delayed, available evidence

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Speaker 3: suggests that both layoffs and hiring remain low, and that

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Speaker 3: both household's perceptions of job availability and firm's perceptions of

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Speaker 3: hiring difficulty continue to decline.

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Speaker 1: Importantly, Powell also cautioned against assuming the FED would cut

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Speaker 1: rates again in December.

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Speaker 3: In the committee's discussions at this meeting, there were strongly

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Speaker 3: differing views about how to proceed in December. A further

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Speaker 3: reduction in the policy rate at the December meeting is

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Speaker 3: not a foregone conclusion. Far from it. Policy is not

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Speaker 3: on precent course now.

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Speaker 1: Two FED members dissented. We had Governor Stephen Myron favoring

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Speaker 1: a larger half point cut, while the head of the

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Speaker 1: Kansas City FED, Jeff Schmid, preferred not to cut at all.

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Speaker 1: We got reaction from Diane Swank, chief economist at KPMG, well.

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Speaker 4: Instead of a dual mandate, we have a dueling mandate,

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Speaker 4: and that's what you saw. We had seven people that

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Speaker 4: had on their dots either no cuts or only the

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Speaker 4: one cut. That we had, and descents are rarely done

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Speaker 4: in a vacuum. And I think Schmid's descent was also

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Speaker 4: in line with another six of those nineteen participants that

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Speaker 4: did not think we needed any additional cuts right now,

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Speaker 4: and I think that's what was important.

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Speaker 1: That is, Diane Swank from KPMG open Ai is reportedly

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Speaker 1: preparing for an initial public offering. Reuter says the IPO

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Speaker 1: could value the company at as much as a trillion dollars.

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Speaker 1: After the bell, we had a flood of earnings news.

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Speaker 1: Microsoft reported a steeper increase in spending than Wall Street

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Speaker 1: had expected. That's due to building out those data centers. Now,

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Speaker 1: for the latest quarter, Microsoft's Azure cloud computing unit posted

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Speaker 1: an increase in revenue of thirty nine percent, beating Wall

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Speaker 1: Street estimates. We got reaction from Bloomberg analyst on a

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Speaker 1: rag Rana.

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Speaker 5: You look at Azure growth of thirty nine percent, I mean,

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Speaker 5: given that size, that's pretty good. The margins actually stood

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Speaker 5: outa way higher than what we were anticipating. We thought

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Speaker 5: there was going to be pressure on margins because of

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Speaker 5: all the spending, and then the last leg when you

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Speaker 5: look at the capex number substantially higher than the thirty

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Speaker 5: billion that they talked about now in You know, to

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Speaker 5: some people, maybe that's a disappointment, but for us, that's

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Speaker 5: a good thing because I think they have so much

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Speaker 5: demand coming in.

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Speaker 1: Honorag Rana there, he is senior tech analyst at Bloomberg Intelligence.

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Speaker 1: Shares and Microsoft were down by more than two percent

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Speaker 1: in late trading. We also heard from Meta Platforms. The

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Speaker 1: company reported third quarter earnings above expectations. However, net income

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Speaker 1: fell short forecast because of a one time non cash

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Speaker 1: charge for income tax. Perhaps more worrisome, Meta is expecting

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Speaker 1: total expenses to significantly increase in twenty twenty six. Now

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Speaker 1: that's due to spending on AI data centers and other equipment.

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Speaker 1: We got reaction from Ivan Findeseth. He is Research director

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Speaker 1: and chief investment officer at Tigris Financial Partners.

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Speaker 6: We have seen investors make a mistake consistently in selling

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Speaker 6: Mata Meta Platforms on capital investment increases, they continue to

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Speaker 6: invest in driving their AI capabilities, which drives increased user engagement,

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Speaker 6: it drives increase return on AdSpend investment. So I like

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Speaker 6: when they continue to invest, and we've seen this multiple times.

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Speaker 1: Ivan findest There from Tigris Financial Partners shares and Meta

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Speaker 1: were down as much as nine percent in late US trading.

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Speaker 1: We also heard from Alphabet. The company reported quarterly sales

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Speaker 1: above estimates tied to its cloud unit. Alphabet is investing

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Speaker 1: record amounts to push more aias into popular products like

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Speaker 1: Google Search. We got reaction from brook May, managing partner

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Speaker 1: at Evans May Wealth.

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Speaker 7: Alphabet is the horse that I would put my money

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Speaker 7: on right now. You know, they've blown their earnings out

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Speaker 7: of the water. You know, not only did they have

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Speaker 7: good earnings growth, but you know the cloud growth was

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Speaker 7: very strong. You know, Search is strong.

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Speaker 1: Brook May there, managing partner at Evans May Wealth. Shares

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Speaker 1: in Alphabet were up nearly five percent in late US trading.

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Speaker 1: President Trump is planning to nominate Ryan Bash for a

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Speaker 1: slot on the Federal Trade Commission. He is currently serving

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Speaker 1: as a staffer at the National Economic Council, and we

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Speaker 1: are told that Bash would replace Melissa Holyoake. She is

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Speaker 1: expected to be nominated to serve as US Attorney for Utah.

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Speaker 1: If confirmed, Bash would fill one of three Republican spots

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Speaker 1: on the five member FTC. In sports, Game five of

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Speaker 1: the World Series is wrapped up. The Toronto Blue Jays

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Speaker 1: defeated the Los Angeles Dodgers by a score of six

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Speaker 1: to one. The Blue Jays now lead the series three

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Speaker 1: games to two. Game six will be played Friday in Toronto.

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Speaker 1: And that is news when you want it with Bloomberg News. Now,

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Speaker 1: I'm Doug Prisoner and this is Bloomberg