Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg
Speaker 1: day Break for Friday January. Coming up this hour, Google
Speaker 1: cuts its workforce by six percent, slashing twelve thousand jobs.
Speaker 1: Netflix shares rally as subscriber growth beats estimates. The US
Speaker 1: hits the debt sealing now the debate over what to
Speaker 1: do about it begins, and more fan officials call for
Speaker 1: higher rates even as inflation. I'm Maybe Morris of federal
Speaker 1: court orders Donald Trump to pay a million dollars for
Speaker 1: a bogus lawsuit, and New York state revenue tops estimates
Speaker 1: by billions of dollars. I'm John Stashower and Swards. The
Speaker 1: net slump continued with the laws in Phoenix. The Rangers
Speaker 1: lost to the Bruins. The Devils and Islanders both lost
Speaker 1: in overtime. That's all trading ahead on Bloomberg Daybreak on
Speaker 1: Bloomberg e Living Free on New York, Bloomberg on Washington,
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine
Speaker 1: sixties and Francisco Sirius x M one nine team and
Speaker 1: around the world on Bloomberg Radio and Dog Carmen via
Speaker 1: The Bloomberg Business Good morning. I'm Nathan Hagar and I'm
Speaker 1: Karen Moscow. Here are the stories we're following today. Karen,
Speaker 1: let's begin with breaking news out of Silicon Valley. One
Speaker 1: of the most notable names in tech is announcing big
Speaker 1: job cuts. Bloomberg Steve Rappaport joins US Live with the latest.
Speaker 1: Good morning, Steve, Good morning, Nathan and Karen. Google is
Speaker 1: the latest player caught in the wave of pink slips
Speaker 1: crashing down on the tech industry, parent company Alphabet announcing
Speaker 1: it will cut twelve thousand jobs, about six percent of
Speaker 1: the global workforce. CEO Sundar Pucae and and Email two
Speaker 1: employees took full responsibility for the decision, adding these are
Speaker 1: important moments to sharp and focus. Rivals Amazon, Meta and
Speaker 1: Microsoft recently cut thousands of jobs as big tech players
Speaker 1: brace for a prolonged trop in demand. Until now, Google
Speaker 1: was one of the few to avoid implementing major layoffs.
Speaker 1: Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. We
Speaker 1: turned to the markets now in US futures are little change.
Speaker 1: This Friday morning, were closing out a week that saw
Speaker 1: the S and P five hundred fall for three straight
Speaker 1: sessions thanks to week economic data. Hank Smith, as chief
Speaker 1: investment officer at Haverford Trust, I think there is a
Speaker 1: chance that the s gets lower low than the October
Speaker 1: two low. But our view is it's likely that we're
Speaker 1: going to have a recession, but equally as likely that
Speaker 1: it's going to be mild and brief. Trust Hank Smith
Speaker 1: says a key thing to watch today is the mass
Speaker 1: expiration of options. It's said to be the biggest January
Speaker 1: event in a decade. Well one bright spot in stocks
Speaker 1: this morning, Karen is Netflix. That company reported earnings late
Speaker 1: yesterday that outperformed estimates, and we get the latest live
Speaker 1: with Bloomberg's John Tucker. Good morning, John, Good morning. Ninth
Speaker 1: of the streaming giant, adding seven point seven million new
Speaker 1: subscribers in the fourth quarter that beat forecast. New content
Speaker 1: brought in more viewers. The series Wednesday in Adam's Family
Speaker 1: spent Off was the company's third most popular series ever. Well,
Speaker 1: the documentary Harry and Meghan was also we hit. Netflix
Speaker 1: also had its own drama in the boardroom. The co
Speaker 1: founder Read Hastings a stepping aside, the CEO post now
Speaker 1: being filled by his two longtime associates Ted Surrandos and
Speaker 1: Greg Peters shares her up over five percent pre market.
Speaker 1: Last year, the company saw more than a third of
Speaker 1: its value wiped out after poor showing in the first quarter.
Speaker 1: Live in New York. I'm John Tucker, Bloomberg Daybreak. All right, John,
Speaker 1: thank you well. On the economic front, we are seeing
Speaker 1: more Fed officials called for high interest rates. That's despite
Speaker 1: signs inflation is cooling. Here's Federal Reserve Bank of New
Speaker 1: York President John Williams, some signs the inflations moderating. It
Speaker 1: remains far too high and it is my number one
Speaker 1: concern going into twin And that sentiment from John Williams
Speaker 1: was also echoed by the Vice chair of the Federal Reserve,
Speaker 1: Lyle Brainerd. Inflation has declined in recent months, but inflation
Speaker 1: was very high and it's going to take time and
Speaker 1: resolve to get it back. And Vice chair Lyle Inner
Speaker 1: did not explicitly state a preference for the size of
Speaker 1: the Fed's next rate. HIG traders are currently pricing in
Speaker 1: a quarter point increase the low s c D in
Speaker 1: the Central banks current hiking cycle. No, we're wrapping up
Speaker 1: the final day of the World Economic Forum today Karen,
Speaker 1: and one message is becoming clear. At Davos, finance executives
Speaker 1: say they now see reasons to be upbeat. We caught
Speaker 1: up with Bank of America's CEO Brian moynihan in the
Speaker 1: U s UM research team, which is the best in
Speaker 1: the business, as a mild recession predicted sort of mid
Speaker 1: this year. In the next year, they pushed that out,
Speaker 1: And so why they keep pushing out It's the strength
Speaker 1: of the US consumer. They have the FED getting over
Speaker 1: you know, five five, five and a quarter. Just this
Speaker 1: week they moved at the three bases point rate rise
Speaker 1: as opposed to fifty. Bank of America's CEO Brian moynihan
Speaker 1: spoke with Bloomberg's David Weston in Davos. He joins Morgan
Speaker 1: Stanley's James Gorman, and City Groups Jane Frasier with signs
Speaker 1: of conscious optimism. Well, speaking of Wall Street's CEO s
Speaker 1: Nathan JP, Morgan, Chase is out with fresh details on
Speaker 1: Jamie Diamond's pay. The bank is keeping the CEOs total
Speaker 1: compensation and unchanged. He'll get thirty four and a half
Speaker 1: million for his work in two It's a year where
Speaker 1: the firm's profit fell by almost a quarter, and JPMorgan
Speaker 1: Stock notched its worst annual performance in more than a decade.
Speaker 1: Google's parent company, Alphabet announced it will slash twelve thousand jobs,
Speaker 1: more than six percent of its global workforce, become the
Speaker 1: latest tech giant to rain things in after years of
Speaker 1: abundant growth and hiring. Let's bring an Alex web for
Speaker 1: more on this. Bloomberg Quick Take correspondent Alex Good morning.
Speaker 1: A number like six percent when it comes to the
Speaker 1: workforce certainly gets your attention. Though, put this into context
Speaker 1: for us, what does this come after? It comes off
Speaker 1: a lot of job carts across the rest of the industry,
Speaker 1: And actually twelve thousand at Google seems like it's less
Speaker 1: than the eighteen thousand Amazon, but six percent is a
Speaker 1: far higher proportion of the workforce being cut. Done is
Speaker 1: happening at Amazon? Of course? Google, you know, it is
Speaker 1: based in advertising technology business. As we know, during economic turbulence,
Speaker 1: the first thing that companies tend to cut is their
Speaker 1: marketing budget, and Google is feeling that the pain of
Speaker 1: that that you know, there's massive slow down in growth anticipated,
Speaker 1: so h the job cuts. They did not expand as
Speaker 1: quickly as some of their competitors, and the revenue per employee,
Speaker 1: which is a pretty good gauge of whether they have
Speaker 1: grown headcount more quickly than they could grow revenue has
Speaker 1: continued to trend upwards, which you can't say certainly for Amazon.
Speaker 1: But there is a certain course correction going on here
Speaker 1: for sure. Is this the course correction that comes after
Speaker 1: overspending during the pandemic? Um? I think probably it's anticipating
Speaker 1: too much growth coming forward going forward right that. There
Speaker 1: was a lot of spending actually that got kind of
Speaker 1: front loaded during the pandemic, both in terms of cloud
Speaker 1: and in terms of consumer spending. You know, the people, um,
Speaker 1: you know, as they got bail out checks, there are
Speaker 1: a lot of peop or not everyone, a lot of
Speaker 1: people who had more disposable income. That is absolutely not
Speaker 1: the case right now for the vast majority of people.
Speaker 1: And so as they're spending goes down, so does the
Speaker 1: so does the advertising spend, and Google gets the knock
Speaker 1: on effect of that. So this adds on to the
Speaker 1: spending cuts that we're seeing across the big tech industry.
Speaker 1: We've heard from a number of analysts some contrarian views,
Speaker 1: thinking that the traditional thing stocks might be something of
Speaker 1: a buy at this point. But what does this say
Speaker 1: when we see these kinds of cuts coming about the
Speaker 1: overall trajectory for the tech space. I think, you know,
Speaker 1: there is a question of whether they are still growth stocks.
Speaker 1: But as ever with growth stocks in the anticipation has
Speaker 1: long been that at a certain point they wanted to
Speaker 1: they could pivot to becoming more value. And maybe maybe
Speaker 1: that is what this pivot is. You know, they're still
Speaker 1: generating huge amounts of cash that the likes of Google.
Speaker 1: You know, it's still it is now trading um at
Speaker 1: far less of a premium to the to the to
Speaker 1: the market than it was, you know, certainly even a
Speaker 1: year ago. I think it's not training a discount to
Speaker 1: the broader market. Um. That may provide an opportunity that
Speaker 1: some people may see an opportunity there, but it's by
Speaker 1: no means a short thing. Thanks Alex, great to have
Speaker 1: you on with us, particularly on the breaking news. Alex
Speaker 1: Web of Bloomberg quick take on Google cutting twelve thousand
Speaker 1: jobs across its global workforce. Looking at the shares this morning,
Speaker 1: they're moving higher off the back of that headline, up
Speaker 1: nearly one point six percent in early trading. It is
Speaker 1: forty degrees in Central Park. Clouds breeze today, maybe a
Speaker 1: lingering shower. We'll get into the upper forties. It'll turn
Speaker 1: partly cloudy tonight with a lowe near thirty five. Time
Speaker 1: now to take a look at some of the other
Speaker 1: stories making news in New York and around the world.
Speaker 1: Good morning, Amy Morris, Good morning Nathan Hagar. A federal
Speaker 1: judge has ruled Donald Trump has to pay nearly a
Speaker 1: billion dollars for filing a bogus lawsuit. The judge says
Speaker 1: the suit against Hillary Clinton and dozens of the former
Speaker 1: presidents person chieved political enemies was quote brought in bad
Speaker 1: faith for an improper purpose. The New York Times reports
Speaker 1: the ruling was the latest setback for Trump, who also
Speaker 1: faces a broad range of legal problems and criminal investigations,
Speaker 1: and his lawyers are increasingly under scrutiny themselves for their
Speaker 1: actions in those cases. New York State has collected seven
Speaker 1: point seven billion dollars more in taxes and the first
Speaker 1: nine months of the fiscal year than forecast. State Comptroller
Speaker 1: Thomas Dinnapoli says much of that was from personal income
Speaker 1: tax collections, and that the tax collections are exceeding expectations,
Speaker 1: but that concerns of an economic downturn create uncertainty. A
Speaker 1: slowdown on Wall Street, lower banker bonuses, and a potential
Speaker 1: recession could up end the state's finances. New York Governor
Speaker 1: Kathy Hokele wants to bring one Buffalo Bills player to
Speaker 1: New York City. The governor was at an event in
Speaker 1: East Harlem when she talked with Damar Hamlin. She says
Speaker 1: he wants to use the gift of his story to
Speaker 1: inspire and I said, you can be a great voice
Speaker 1: to join with me and letting you know people know
Speaker 1: that through sports or music and culture and dance at
Speaker 1: places like this, they can have a better outcome. So
Speaker 1: so I'm going to get them up here. Don't know
Speaker 1: when Hamlin suffered cardiac arrest on the field during a
Speaker 1: primetime game between the Bills and the Cincinnati Bengals. He
Speaker 1: tweeted later that he is excited to see how their
Speaker 1: future collaborations will help. Nasau County officials are pinpointing the
Speaker 1: source of an increase in overdoses over the past week.
Speaker 1: Police and health officials say many of the recent overdoses
Speaker 1: are linked to counterfeit prescription pills or presses. The pills
Speaker 1: that are being circulated may contain fentonil and could be deadly.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred
Speaker 1: journalists and analysts and more than one twenty countries. I
Speaker 1: maybe Morris, this is Bloomberg. Nathan. Alright, Amy, thank you
Speaker 1: time now for our Bloomberg Sports they brought to you
Speaker 1: by Try stay out here for that and bring in
Speaker 1: Jon stash Our. All right, Nathan. Thanks. The Giants later
Speaker 1: today hit the Turnpike heading South playoff game tomorrow night
Speaker 1: with their division Riyals. Giants have lost their last nine
Speaker 1: games that they have played in Philadelphia. The Giants quarterback
Speaker 1: is Daniel Jones. Game is different, you know, I think
Speaker 1: UH will approach this UM like we would any other game,
Speaker 1: but that they're good, good team. It's a good environment. Uh.
Speaker 1: They bring a lot of energy. Fans are passionate, UM,
Speaker 1: but like any road game, will prepare for that and
Speaker 1: be able to uh, you know, handle that UM as
Speaker 1: part of the game. The Eagles, top seeds in the NFC,
Speaker 1: beat the Giants twice this year. They had a by
Speaker 1: last week's fifth ever playoff game between the two teams,
Speaker 1: and they both won twice. Sunday in the NFC, it's
Speaker 1: Dallas at San Francisco. We'll see how Brett Maher kicks
Speaker 1: for the Cowboys coming off four missed extra points. The
Speaker 1: Cowboys did sign another kicker, but they say Maher made
Speaker 1: all his kicks yesterday in practice. A blow to the
Speaker 1: next center Mitchell Robinson, key player with his d fence
Speaker 1: and rebound. He's got a broken thumb, likely to miss
Speaker 1: a month. Nick's played tonight in Atlanta. The networ in Phoenix.
Speaker 1: The Soun's led by twenty and the third quarter then
Speaker 1: held on one seventeen to one twelve, and the Nets
Speaker 1: are owing four since the Kevin Duran injury at the Garden,
Speaker 1: Rangers didn't score until late. They lost to the Bruins,
Speaker 1: of the best record in the NHL, three to one.
Speaker 1: Devil's lost in overtime at Seattle for three in The
Speaker 1: Islanders are three two overtime lost in Buffalo as the
Speaker 1: Sabers scored twelve seconds into ot College hoops. The Rutgers
Speaker 1: lost at Michigan State seventy to fifty seven. The x
Speaker 1: Yankee closed our oldest. Chapman signed with Kansas City Coco
Speaker 1: Golf into the third round, our fourth round at the
Speaker 1: Australian Open, as Jabber, second seed on the women's side,
Speaker 1: lost her match. John Stashward Bloomberg Sports Live from coast
Speaker 1: to coast, from New York to San Francisco, Boston to Washington,
Speaker 1: d C. Nationwide on Sirius x Amp, the Bloomberg Business app,
Speaker 1: and Bloomberg dot Com. This is Bloomberg Day Break. Good morning.
Speaker 1: I'm Nathan Hagar, and we want to take you back
Speaker 1: to Davos now to bring you our interview with Senator
Speaker 1: Joe Manchin, the Democrat from West Virginia. He spoke with
Speaker 1: Bloomberg David Weston about his call for a bipartisan solution
Speaker 1: to avert a government default that threatens to jolt global markets.
Speaker 1: Man Should also addressed questions about his plans for re
Speaker 1: election next year. Let's listen in to that conversation. Now,
Speaker 1: we will pay our debts. We always have, We always will.
Speaker 1: How mess is going to get getting from point A
Speaker 1: to point B, we don't know yet, but I'd like
Speaker 1: to see really truly a coalition of a bipartisan By
Speaker 1: camera Democrats and Republicans putting a group together that says
Speaker 1: we're gonna look at all the trust funds to find
Speaker 1: out the deficiencies when they're going to be insolvent and
Speaker 1: what we can do to prevent that, and then basically
Speaker 1: have a piece of legislation that we're saying, Okay, we
Speaker 1: will make this deal or raise the debt setting if
Speaker 1: you allow us to have give the American public a
Speaker 1: look at what we're dealing with and recommendations will make
Speaker 1: and have a vote on the floor whether it goes
Speaker 1: up or not. But at least it identifies it's serious.
Speaker 1: And the same thing with the thirty one plus trillion
Speaker 1: dollars of debt. So that sounds a little bit like
Speaker 1: some commissions we've seen in the past, like base closings
Speaker 1: and on Social Security. Where are you on that? Are
Speaker 1: you starting to put that together? The conspect, I'm just
Speaker 1: throwing it out to make people. My dear friend Mitt
Speaker 1: Romney has been working on the Trust Act. I joined
Speaker 1: him on that. I think it's it's tremendous to identify
Speaker 1: that we've got social Security and Medicare, we got the
Speaker 1: Highway trust. He's been very good leading that and we
Speaker 1: talked about, remember the old uh the bowls Simpson, Let's
Speaker 1: look at a hybrid of something that we're gonna have
Speaker 1: to agree that we have a tremendous amount of debt
Speaker 1: that we're writing checks our kids can't cash. So if
Speaker 1: you want to have concerns about should we or should
Speaker 1: we not? Absolutely we should. We should pay our debts.
Speaker 1: Should we allow him to grow disproportionately where we have
Speaker 1: more trouble every year? Coming to that conclusion to pay
Speaker 1: the debts when we could have done something Kevin McCarthy
Speaker 1: is a wonderful opportunity for him to say, listen, let's
Speaker 1: act like adults. We've got a at whose fault, We're
Speaker 1: all at fault. How do we fix it together and
Speaker 1: move forward? Well, that sounds like eminently good sense to me.
Speaker 1: Do you have time because we've heard from Jennelly already
Speaker 1: she's taking extraordinary measures. There's a speculation about June July
Speaker 1: we're gonna actually run out of the money. Do you
Speaker 1: have time to get all that accomplisutions descried before. We're
Speaker 1: not talking about bills. We're talking about, basically a framework
Speaker 1: to bring a bill to the floor within a ninety
Speaker 1: day period. If we agree, yes, we're gonna do target
Speaker 1: that we're talking to the trust, make sure that we
Speaker 1: know what we're dealing with. We're gonna target basically the
Speaker 1: debt and increasing of the debt to how we can
Speaker 1: basically prevent that from continue to increase as it does
Speaker 1: and started downward trend. And there has to be some
Speaker 1: discipline and there has to be some sacrifice. What about
Speaker 1: strings attached to an increase in the debt? Selling along
Speaker 1: lines you're saying, say that we don't have time to
Speaker 1: get all the work done, get all the approvals through,
Speaker 1: but we want a commitment that we're going to go
Speaker 1: on the path you're describing right now. If you we're
Speaker 1: not gonna increased, If your compary says we're gonna cut military,
Speaker 1: we're gonna cut the social security and and all the
Speaker 1: different safety things. You have to have your military for
Speaker 1: the defense we have and the geopolitical unrest, you're not
Speaker 1: going to leave senior citizens who have worked and paid
Speaker 1: into it stranded. So quit talking and scaring them. But
Speaker 1: Jesus out of people, find a path that works. And
Speaker 1: you can't do it, just okay, here's we gotta do.
Speaker 1: If you do this, then I'll vote for If you
Speaker 1: don't do this, I'm gonna vote against it. I'm not
Speaker 1: going to hold hostage. I want to get a reasonable
Speaker 1: approach to find something that has long lasting and has results,
Speaker 1: long lasting results. What about the White House? What do
Speaker 1: the present? But we're not gonna even negotiate. I'm not
Speaker 1: sure how that works right now. What he's saying on negotiation,
Speaker 1: He don't he's not. I don't blame it. It. Don't
Speaker 1: be held hostage. They shouldn't be held hostage. You can't help.
Speaker 1: You can't hold the good faith of the greatest economy
Speaker 1: in the world hostage by saying we're gonna destroy your
Speaker 1: credit ratings with the rest of the world and how
Speaker 1: they think about our country, how they investor buy our
Speaker 1: bonds and and and things of that sort. That that's
Speaker 1: something that can happen. It was done in two thousand eleven,
Speaker 1: two thousand thirteen, it didn't work out well. Why would
Speaker 1: it try to get But there's an awful lot of
Speaker 1: leverage to do something very very constructive. It will be productive.
Speaker 1: There are others that are only to join. I think
Speaker 1: there is I think there's there's there's a growing amount
Speaker 1: of people that like to say, Okay, how do we
Speaker 1: fix this? I don't know until I get Democrats and
Speaker 1: Republicans who are like minded put the country before the party.
Speaker 1: But if you're just thinking, well, let me see if
Speaker 1: we don't fix this, I can blame you for that.
Speaker 1: And if you're a d or and are, you're blaming
Speaker 1: one side or the other. So you're not looking for solutions.
Speaker 1: You're looking at basically to create more chaos within the
Speaker 1: political and that's not what we need right now. And
Speaker 1: I'm hoping that Kevin. I'm I didn't tell Kevin McCarthy
Speaker 1: right now. Whatever I can do to help you and
Speaker 1: work with you, I want you to succeed election. You
Speaker 1: can do wild one. Are you up as a Democrat?
Speaker 1: I really haven't made that decision. I really haven't. I'm
Speaker 1: so engaged basically in trying to bring this country together,
Speaker 1: to unite the country to where people aren't afraid to say,
Speaker 1: hey day, that makes sense, I'm gonna work with you
Speaker 1: on that. It might be the opposite party. They're almost
Speaker 1: afraid to have a conversation. I used to be it
Speaker 1: used to be guilt by by association. Now it's guilt
Speaker 1: by conversation. That's awful. So we've got we've got to
Speaker 1: bring this back. This is Bloomberg Daybreak Today, your morning
Speaker 1: brief on the stories making news from Wall Street to
Speaker 1: Washington and beyond. Look for us on your podcast feed
Speaker 1: at six am Eastern each morning, on Apple, Spotify, and
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Speaker 1: live each morning starting at five am Wall Street Time
Speaker 1: on Bloomberg eleven three oh in New York, Bloomberg in Washington,
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Speaker 1: Bloomberg Business app, serious XM Channel one nine, the I
Speaker 1: Heart Radio app, and on Bloomberg dot com. I'm Nathan
Speaker 1: Hager and I'm Karen Moscow. Join us again tomorrow morning.
Speaker 1: Are all the news you need to start your day
Speaker 1: right here on Bloomberg Daybreak