1
00:00:02,520 --> 00:00:07,040
Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

2
00:00:09,960 --> 00:00:13,160
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

3
00:00:13,160 --> 00:00:14,920
Speaker 2: are the stories we're following today.

4
00:00:15,520 --> 00:00:19,440
Speaker 3: Karen, we begin with some big tech earnings disappointments, starting

5
00:00:19,560 --> 00:00:23,400
Speaker 3: with Netflix. Those shares are down nearly seven percent in

6
00:00:23,440 --> 00:00:27,520
Speaker 3: early trading. The world's most valuable entertainment company posted quarterly

7
00:00:27,560 --> 00:00:30,520
Speaker 3: operating income of almost three hund a quarter billion dollars

8
00:00:30,560 --> 00:00:34,440
Speaker 3: that was about four hundred million below analyst estimates. Netflix

9
00:00:34,479 --> 00:00:37,840
Speaker 3: says a tax dispute with Brazil cut into its third

10
00:00:37,880 --> 00:00:41,519
Speaker 3: quarter results. On the company conference call, Netflix co CEO

11
00:00:41,600 --> 00:00:45,000
Speaker 3: Ted Sarandos address speculation the company's weighing bids for parts

12
00:00:45,000 --> 00:00:46,280
Speaker 3: of Warner Brothers Discovery.

13
00:00:46,880 --> 00:00:48,600
Speaker 4: We've been very clear in the past that we have

14
00:00:48,680 --> 00:00:51,680
Speaker 4: no interest in owning legacy media networks, so there is

15
00:00:51,720 --> 00:00:54,840
Speaker 4: no change there. But in general, we believe that we

16
00:00:54,960 --> 00:00:57,840
Speaker 4: can be and we will be choosy. We have a

17
00:00:57,880 --> 00:01:01,880
Speaker 4: great business. We're predominantly focused on growing organically, investing aggressively

18
00:01:01,920 --> 00:01:05,760
Speaker 4: and responsibly into the growth, and returning access cash flow

19
00:01:05,760 --> 00:01:08,759
Speaker 4: to shareholders through our shot to share repurchase.

20
00:01:09,000 --> 00:01:11,920
Speaker 3: Netflix co CEO Ted Sarando says the company had to

21
00:01:11,920 --> 00:01:14,400
Speaker 3: pay about six hundred and nineteen million dollars to settle

22
00:01:14,440 --> 00:01:16,880
Speaker 3: a multi year tax dispute with Brazil going back to

23
00:01:16,920 --> 00:01:19,440
Speaker 3: twenty twenty two. He says the company would have beaten

24
00:01:19,520 --> 00:01:21,480
Speaker 3: forecasts if not for that expense.

25
00:01:21,959 --> 00:01:25,880
Speaker 2: Nathan. Another earnings disappointment has shares of Texas Instruments down

26
00:01:25,880 --> 00:01:28,960
Speaker 2: almost nine percent. The biggest maker of analog chips gave

27
00:01:29,000 --> 00:01:32,600
Speaker 2: a lackluster forecast for the current period, adding to concern

28
00:01:32,680 --> 00:01:35,319
Speaker 2: that a ship industry recovery is sputtering well.

29
00:01:35,319 --> 00:01:38,000
Speaker 3: Staying in tech, Karen Bloomberg News has learned Google is

30
00:01:38,040 --> 00:01:41,640
Speaker 3: in talks for a mega deal with artificial intelligence company

31
00:01:41,680 --> 00:01:44,000
Speaker 3: and Thropic. Let's get the very latest on that with

32
00:01:44,000 --> 00:01:45,160
Speaker 3: Bloomberg's John Tucker.

33
00:01:45,240 --> 00:01:47,600
Speaker 5: John, good morning, Good morning, Nathan. You have the race

34
00:01:47,680 --> 00:01:51,360
Speaker 5: for AI dominance may have gotten more intense. If this

35
00:01:51,440 --> 00:01:55,440
Speaker 5: deal goes through, Google would provide Anthropic with computing power

36
00:01:55,760 --> 00:01:59,480
Speaker 5: worth tens of billions of dollars. It would allow Anthropic

37
00:01:59,560 --> 00:02:03,720
Speaker 5: to use Google's chip's custom designed to accelerate machine learning workloads,

38
00:02:04,080 --> 00:02:07,160
Speaker 5: and it would further cement the relationship between Google and

39
00:02:07,200 --> 00:02:10,760
Speaker 5: the AI startup founded in twenty twenty one by former

40
00:02:10,840 --> 00:02:14,680
Speaker 5: Open Ai employees San Francisco based Anthropic, best known for

41
00:02:14,720 --> 00:02:18,919
Speaker 5: its Claud family of large language models, which compete directly

42
00:02:19,080 --> 00:02:23,320
Speaker 5: with Open Ai. Google has previously invested about three billion

43
00:02:23,360 --> 00:02:27,200
Speaker 5: dollars in Anthropic and Google parent Alphabet up one point

44
00:02:27,240 --> 00:02:31,120
Speaker 5: two percent pre market, New York. I'm John Tucker, Bloomberg Radio.

45
00:02:31,320 --> 00:02:33,960
Speaker 2: All right, John, thank you. We turned now to commodities,

46
00:02:34,000 --> 00:02:38,280
Speaker 2: where gold and silver are rebounding from yesterday's selloff. Gold

47
00:02:38,320 --> 00:02:41,799
Speaker 2: fell nearly six percent yesterday for its biggest inter day

48
00:02:41,880 --> 00:02:44,359
Speaker 2: drop in more than a dozen years. At one point,

49
00:02:44,440 --> 00:02:48,600
Speaker 2: silver was down almost nine percent. Mike mcgloone covers commodities

50
00:02:48,639 --> 00:02:49,840
Speaker 2: for Bloomberg Intelligence.

51
00:02:50,120 --> 00:02:51,840
Speaker 6: Right now, it's just a little bit of profit taking,

52
00:02:52,200 --> 00:02:55,760
Speaker 6: But it's what's happening in gold that's very disconcerting. As

53
00:02:55,800 --> 00:02:58,720
Speaker 6: of yesterday, it was up sixty six percent in the year.

54
00:02:59,040 --> 00:03:01,480
Speaker 6: That put it among the top four of the last

55
00:03:01,520 --> 00:03:04,639
Speaker 6: one hundred years, with only nineteen seventy nine, seventy three,

56
00:03:04,639 --> 00:03:07,640
Speaker 6: and seventy four ahead of it, So it's very expensive.

57
00:03:07,800 --> 00:03:10,480
Speaker 6: At the same time, crude oil was down about twenty percent.

58
00:03:11,120 --> 00:03:14,320
Speaker 6: That disparity around eighty six percent has never happened.

59
00:03:14,320 --> 00:03:18,000
Speaker 2: It's never been that extreme in Bloombergy Intelligence Mike McGlone

60
00:03:18,080 --> 00:03:21,240
Speaker 2: checking prices of gold right now Comec's gold is down

61
00:03:21,240 --> 00:03:24,079
Speaker 2: about two tenths of up percent at four thousand, one

62
00:03:24,120 --> 00:03:27,400
Speaker 2: hundred dollars announced. Silver is down about a third of

63
00:03:27,440 --> 00:03:27,919
Speaker 2: up percent.

64
00:03:28,240 --> 00:03:30,480
Speaker 3: Let's get to the latest, Karen. On the trade front,

65
00:03:30,520 --> 00:03:33,360
Speaker 3: President Trump is sending a mixed message ahead of a

66
00:03:33,400 --> 00:03:36,520
Speaker 3: possible meeting with Chinese President Shi Jin Pink During a

67
00:03:36,520 --> 00:03:39,040
Speaker 3: White House rose guard in lunch with Senate Republicans, the

68
00:03:39,080 --> 00:03:41,880
Speaker 3: President said the terifrate on Chinese exports would be about

69
00:03:41,880 --> 00:03:44,760
Speaker 3: one hundred and fifty five percent by November first, if

70
00:03:44,800 --> 00:03:45,640
Speaker 3: they don't make a deal.

71
00:03:46,080 --> 00:03:47,760
Speaker 7: Now, we're going to have a fair deal. I think

72
00:03:47,760 --> 00:03:50,680
Speaker 7: we're going to have a very successful meeting. Certainly, there

73
00:03:50,680 --> 00:03:52,600
Speaker 7: are a lot of people that are waiting for it.

74
00:03:52,720 --> 00:03:55,960
Speaker 7: Maybe it won't happen. Maybe it won't happen. Things can

75
00:03:56,440 --> 00:04:00,600
Speaker 7: happen where for instance, maybe somebody will say I don't

76
00:04:00,640 --> 00:04:03,680
Speaker 7: want to meet. It's too nasty, But it's really not nasty.

77
00:04:03,720 --> 00:04:04,560
Speaker 7: It's just business.

78
00:04:04,720 --> 00:04:06,760
Speaker 3: President Trump says he wants to make a good deal

79
00:04:06,760 --> 00:04:08,640
Speaker 3: with China, but he says it has to be fair.

80
00:04:08,800 --> 00:04:11,600
Speaker 3: Treasury Secretary Scott Bessett plans to meet with his Chinese

81
00:04:11,600 --> 00:04:14,680
Speaker 3: counterpart over the weekend before the talks between Presidents Trump

82
00:04:14,680 --> 00:04:17,400
Speaker 3: and she. Those are expected at the APEX summit in

83
00:04:17,520 --> 00:04:20,120
Speaker 3: South Korea, though the date and time have not yet

84
00:04:20,160 --> 00:04:20,839
Speaker 3: been announced.

85
00:04:21,360 --> 00:04:24,520
Speaker 2: Nathan India and the US are reportedly near a trade

86
00:04:24,560 --> 00:04:27,520
Speaker 2: deal that could lower tariffs on Indian exports to fifteen

87
00:04:27,560 --> 00:04:31,320
Speaker 2: to sixteen percent from about fifty percent. The newspaper is

88
00:04:31,360 --> 00:04:34,480
Speaker 2: reporting India may agree to gradually reduce its imports of

89
00:04:34,560 --> 00:04:36,919
Speaker 2: Russian oil as part of the deal and allow the

90
00:04:37,000 --> 00:04:41,200
Speaker 2: US to export more non genetically modified corn and soymeal.

91
00:04:41,440 --> 00:04:46,080
Speaker 3: Overnight, Karen Russia launched multiple drone and missile strikes on Ukraine,

92
00:04:46,279 --> 00:04:50,080
Speaker 3: as a planned second summit between President Trump and Russian

93
00:04:50,120 --> 00:04:54,120
Speaker 3: President Vladimir Putin is thrown into jeopardy. The President address

94
00:04:54,200 --> 00:04:55,680
Speaker 3: that possible meeting yesterday.

95
00:04:56,040 --> 00:04:57,920
Speaker 8: I don't want to have a wasted meeting. I don't

96
00:04:57,920 --> 00:04:59,960
Speaker 8: want to have a wasted time. So I'll see what happened.

97
00:05:00,200 --> 00:05:02,359
Speaker 8: But when I said, go to the line, go to

98
00:05:02,400 --> 00:05:06,720
Speaker 8: the line of the battle on the battlefield lines, and

99
00:05:06,839 --> 00:05:10,279
Speaker 8: you pull back and you go home, and everybody takes

100
00:05:10,279 --> 00:05:12,400
Speaker 8: some time off because you have two countries that are

101
00:05:12,480 --> 00:05:15,559
Speaker 8: killing each other, two countries are losing five to seven

102
00:05:15,640 --> 00:05:18,800
Speaker 8: thousand soldiers a week, So we'll see what happens. It's

103
00:05:19,080 --> 00:05:21,039
Speaker 8: we haven't made a determination.

104
00:05:20,520 --> 00:05:23,200
Speaker 3: Ar President Trump had said he planned to meet with

105
00:05:23,240 --> 00:05:25,560
Speaker 3: President Putin in Budapest in the coming weeks.

106
00:05:26,160 --> 00:05:29,520
Speaker 2: Now, Nathan to a report that's raising conflict of interest

107
00:05:29,640 --> 00:05:32,279
Speaker 2: questions at the White House. According to The New York Times,

108
00:05:32,320 --> 00:05:35,839
Speaker 2: President Trump is demanding the Justice Department pay him about

109
00:05:35,839 --> 00:05:40,120
Speaker 2: two hundred and thirty million dollars for past investigations against him.

110
00:05:40,440 --> 00:05:43,360
Speaker 2: That includes the probes into Russian interference in the twenty

111
00:05:43,400 --> 00:05:47,320
Speaker 2: sixteen campaign and the FBI search of his Mara Lago home.

112
00:05:47,640 --> 00:05:50,560
Speaker 2: President Trump appeared to acknowledge the report when he was

113
00:05:50,640 --> 00:05:52,640
Speaker 2: asked about it in the Oval Office.

114
00:05:52,960 --> 00:05:56,520
Speaker 8: We have numerous cases having to do with the fraud

115
00:05:56,520 --> 00:05:59,440
Speaker 8: of the election, the twenty twenty election, and because of

116
00:05:59,680 --> 00:06:02,680
Speaker 8: every thing that we found out, I guess they owe

117
00:06:02,720 --> 00:06:03,800
Speaker 8: me a lot of money.

118
00:06:03,920 --> 00:06:05,960
Speaker 2: By President Trump says if he gets the money, he

119
00:06:06,000 --> 00:06:08,120
Speaker 2: would give it to charity or use it to restore

120
00:06:08,160 --> 00:06:11,240
Speaker 2: the White House. Any decisions about paying the president's claims

121
00:06:11,440 --> 00:06:14,480
Speaker 2: would be made by senior Justice Department officials, some of

122
00:06:14,520 --> 00:06:17,600
Speaker 2: whom could be the president's own personal lawyers. The Justice

123
00:06:17,600 --> 00:06:21,440
Speaker 2: Department says all its officials followed the guidance of career

124
00:06:21,520 --> 00:06:22,479
Speaker 2: ethics officials.

125
00:06:22,720 --> 00:06:25,200
Speaker 3: Let's turn back to the markets and earnings now, Karen,

126
00:06:25,240 --> 00:06:28,640
Speaker 3: We're watching shares of Barclays. They're up about four percent.

127
00:06:28,839 --> 00:06:31,440
Speaker 3: In Europe, the British lender raised its earnings guidance for

128
00:06:31,520 --> 00:06:34,839
Speaker 3: this year and unveiled a five hundred million dollar stock buyback.

129
00:06:34,880 --> 00:06:37,160
Speaker 3: We spoke with CEO CS van Kata Christian.

130
00:06:37,560 --> 00:06:40,480
Speaker 9: We had a top line beat of eleven percent growth

131
00:06:40,560 --> 00:06:42,479
Speaker 9: yere over year to seven point two billion. On the

132
00:06:42,480 --> 00:06:46,400
Speaker 9: top line, we've had nine percent consecutive quarters of tangible

133
00:06:46,440 --> 00:06:47,560
Speaker 9: net value growth.

134
00:06:47,720 --> 00:06:50,960
Speaker 3: CEOCS van Kada Christian says Barclays is conducting a review

135
00:06:50,960 --> 00:06:54,760
Speaker 3: of its entire Lorn portfolio after the collapse of Tricolor holdings.

136
00:06:55,279 --> 00:06:58,680
Speaker 2: On the economic front, Nathan UK inflation unexpectedly held steady

137
00:06:58,680 --> 00:07:01,560
Speaker 2: in September after food bills fell for the first time

138
00:07:01,560 --> 00:07:04,599
Speaker 2: in sixteen months. Consumer prices rose three point eight percent

139
00:07:04,640 --> 00:07:07,640
Speaker 2: from a year earlier. Data is fueling market bets on

140
00:07:07,680 --> 00:07:10,400
Speaker 2: a Bank of England interest rate cut before the end

141
00:07:10,440 --> 00:07:15,920
Speaker 2: of the year. Time now for a look at some

142
00:07:16,000 --> 00:07:17,760
Speaker 2: of the other stories making news in New York and

143
00:07:17,800 --> 00:07:19,920
Speaker 2: around the world. And for that we're joined by Blueberrys

144
00:07:19,920 --> 00:07:21,280
Speaker 2: and Michael Bahr or Michael good.

145
00:07:21,240 --> 00:07:24,240
Speaker 10: Morning, Good morning Careen. It is now date twenty two

146
00:07:24,360 --> 00:07:27,760
Speaker 10: of the government shut down. Democrats say Republicans refuse to

147
00:07:27,800 --> 00:07:32,600
Speaker 10: negotiate on Democratic demands for health care funds. President Trump

148
00:07:32,680 --> 00:07:34,440
Speaker 10: says he'll discuss healthcare, but.

149
00:07:34,760 --> 00:07:36,560
Speaker 8: I'd love to meet with them. I just want them

150
00:07:36,600 --> 00:07:37,840
Speaker 8: to open up the country grace.

151
00:07:38,160 --> 00:07:42,360
Speaker 10: Senate Democratic Leader Chuck Schumer says he and the House

152
00:07:42,440 --> 00:07:45,840
Speaker 10: Minority leader have reached out to President Trump for a meeting.

153
00:07:46,400 --> 00:07:50,320
Speaker 11: People are just struck of the difficulty they will be

154
00:07:50,440 --> 00:07:53,400
Speaker 11: in not having health care, not being able to pay

155
00:07:53,400 --> 00:07:55,720
Speaker 11: the rent if they pay for health care. They're just

156
00:07:55,840 --> 00:07:58,080
Speaker 11: shocked at how bad this is. And Trump has an

157
00:07:58,080 --> 00:08:01,600
Speaker 11: obligation to negotiate with this solve this problem.

158
00:08:02,240 --> 00:08:05,640
Speaker 10: New York City's Canals Street vendors are nowhere to be seen,

159
00:08:05,880 --> 00:08:08,560
Speaker 10: at least for now. There was an immigration crackdown in

160
00:08:08,600 --> 00:08:12,240
Speaker 10: New York City as federal agents descended on Canal Street,

161
00:08:12,520 --> 00:08:16,240
Speaker 10: famous for its bargain shopping and knockoff designer goods, and

162
00:08:16,360 --> 00:08:20,640
Speaker 10: parts of Chinatown. The scene turned chaotic as agents made arrests.

163
00:08:20,920 --> 00:08:24,080
Speaker 10: New York City Mayor Eric Adams's office said this was

164
00:08:24,160 --> 00:08:27,920
Speaker 10: a federal action and the city officials were not involved

165
00:08:27,960 --> 00:08:31,480
Speaker 10: in the operation. President Trump said that Allied nations in

166
00:08:31,520 --> 00:08:34,040
Speaker 10: the Middle East were prepared to send troops into Gaza

167
00:08:34,120 --> 00:08:37,280
Speaker 10: to confront Hamas if the group did not cease its

168
00:08:37,320 --> 00:08:41,320
Speaker 10: alleged violations of his peace plan. There was violence just

169
00:08:41,400 --> 00:08:44,760
Speaker 10: days ago, prompting Vice President JD. Evans to make a

170
00:08:44,840 --> 00:08:46,480
Speaker 10: last minute trip to the Middle East.

171
00:08:46,960 --> 00:08:48,760
Speaker 3: There are going to be hills and valleys. There are

172
00:08:48,800 --> 00:08:50,760
Speaker 3: going to be moments where it looks like things aren't

173
00:08:50,800 --> 00:08:54,320
Speaker 3: going particularly well. But given that, and given the history

174
00:08:54,360 --> 00:08:57,200
Speaker 3: of conflict, I think that everybody should be proud of

175
00:08:57,240 --> 00:08:58,240
Speaker 3: where we are today.

176
00:08:58,440 --> 00:09:01,760
Speaker 10: Tonight is the second New York City mayoral debate Democrat

177
00:09:01,880 --> 00:09:05,559
Speaker 10: Zoron Mamdani, former Governor Andrew Cuomo, running as an independent

178
00:09:05,640 --> 00:09:10,199
Speaker 10: and Republican Curtis Sliva. We'll square off at LaGuardia Community College.

179
00:09:10,400 --> 00:09:13,200
Speaker 10: Global News twenty four hours a day and whenever you

180
00:09:13,240 --> 00:09:16,240
Speaker 10: want it with Bloomberg News Now. Michael barn This is

181
00:09:16,320 --> 00:09:17,199
Speaker 10: Bloomberg Karen.

182
00:09:18,080 --> 00:09:21,400
Speaker 2: Thanks Michael. Time now for our Bloomberg Sports update, and

183
00:09:21,440 --> 00:09:23,600
Speaker 2: for that we bring in John stash.

184
00:09:23,160 --> 00:09:26,480
Speaker 12: Hour thanks Aaron. Opening night of the NBA at Oklahoma City,

185
00:09:26,559 --> 00:09:30,520
Speaker 12: the thunder hoisted their championship banner, got their rings, and

186
00:09:30,600 --> 00:09:32,839
Speaker 12: for the sixth time ever a season opener went to

187
00:09:32,920 --> 00:09:35,440
Speaker 12: double overtime. First time it's happened in two thousand and five.

188
00:09:35,720 --> 00:09:40,280
Speaker 12: OKC beat Houston five to one twenty four. Last year's MVP,

189
00:09:40,440 --> 00:09:43,800
Speaker 12: Shay Gildess Alexander scored thirty five points, the only five

190
00:09:43,800 --> 00:09:46,560
Speaker 12: at halftime. Golden State the Lakers one nineteen to one

191
00:09:46,559 --> 00:09:49,600
Speaker 12: oh nine. Kurt Suzuki, former Major League catcher never been

192
00:09:49,640 --> 00:09:51,800
Speaker 12: a coach or manager, named the new manager of the

193
00:09:51,960 --> 00:09:54,160
Speaker 12: La Angels. That's your Bloomberg Sports Update.

194
00:09:55,160 --> 00:09:58,040
Speaker 2: Stay with us more from Bloomberg day Break coming up

195
00:09:58,240 --> 00:09:58,800
Speaker 2: after this.

196
00:10:03,080 --> 00:10:07,280
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

197
00:10:07,400 --> 00:10:10,240
Speaker 1: and around the world on Bloomberg dot Com and the

198
00:10:10,280 --> 00:10:13,319
Speaker 1: Bloomberg Business Appum. This is Bloomberg Daybreak.

199
00:10:13,440 --> 00:10:16,439
Speaker 3: Good morning, I'm Nathan Hager. Investors were expecting a solid

200
00:10:16,520 --> 00:10:19,959
Speaker 3: quarter from Netflix, and they mostly got it after the

201
00:10:20,000 --> 00:10:23,240
Speaker 3: release of Kpop Demon Hunters and some other big hits

202
00:10:23,360 --> 00:10:26,240
Speaker 3: during the quarter gone by. But a tax dispute with

203
00:10:26,320 --> 00:10:29,760
Speaker 3: Brazil is putting a hit on the results for the

204
00:10:29,800 --> 00:10:30,559
Speaker 3: streaming giant.

205
00:10:30,640 --> 00:10:31,320
Speaker 5: Let's get more now.

206
00:10:31,320 --> 00:10:34,400
Speaker 3: We're joined by Bloomberg Intelligence Senior Media and Tech analyst

207
00:10:34,800 --> 00:10:37,760
Speaker 3: Matthew Bloxham. Matt, good morning. We are seeing a big

208
00:10:37,960 --> 00:10:41,240
Speaker 3: drop in Netflix shares. Could this tax dispute be an

209
00:10:41,360 --> 00:10:44,400
Speaker 3: ongoing overhang for Netflix? Is that what we're seeing in

210
00:10:44,480 --> 00:10:45,920
Speaker 3: the price reaction this morning?

211
00:10:46,240 --> 00:10:48,560
Speaker 13: Yeah, you know what, I think it's a bit of

212
00:10:48,559 --> 00:10:50,440
Speaker 13: a red hirang. I mean that they would quiet say

213
00:10:50,480 --> 00:10:53,360
Speaker 13: yesterday and saying that they didn't expect this dispute to

214
00:10:53,920 --> 00:10:58,240
Speaker 13: have any impact on for profits. I think what we're

215
00:10:58,280 --> 00:11:01,960
Speaker 13: seeing is more of a reaction to, you know, an

216
00:11:02,000 --> 00:11:06,920
Speaker 13: inline performance, particularly on the top line, and I think

217
00:11:06,920 --> 00:11:09,920
Speaker 13: people were expecting something a bit better than what they

218
00:11:09,960 --> 00:11:14,120
Speaker 13: delivered on the back of that slate of popular and

219
00:11:14,120 --> 00:11:18,960
Speaker 13: well received content and which also included a widely viewed

220
00:11:19,160 --> 00:11:21,160
Speaker 13: live boxing event. So I think, you know, people just

221
00:11:21,200 --> 00:11:24,360
Speaker 13: thought they'd done enough to boost the momentum just a

222
00:11:24,360 --> 00:11:26,960
Speaker 13: bit more than they're guided to and we just saw

223
00:11:27,000 --> 00:11:28,880
Speaker 13: it in line. And so I think it's just a

224
00:11:28,920 --> 00:11:31,959
Speaker 13: little bit of a reaction to you know, that kind

225
00:11:32,000 --> 00:11:34,640
Speaker 13: of whisper number being a bit better. But yeah, it

226
00:11:34,679 --> 00:11:35,920
Speaker 13: came in a bit short.

227
00:11:36,240 --> 00:11:39,480
Speaker 3: And coming into these earnings, there's been all this you know,

228
00:11:39,559 --> 00:11:42,960
Speaker 3: speculation around what's going to happen with Warner Brothers Discovery.

229
00:11:43,000 --> 00:11:46,760
Speaker 3: The reports confirmed that the Netflix is part of that discussion.

230
00:11:47,000 --> 00:11:48,840
Speaker 3: Does it need to be more a part of that

231
00:11:48,920 --> 00:11:52,560
Speaker 3: discussion to get investors more enthused about this stock?

232
00:11:52,640 --> 00:11:52,880
Speaker 1: Now?

233
00:11:55,559 --> 00:11:58,520
Speaker 13: I think, you know, the investors are probably a little

234
00:11:58,559 --> 00:12:00,800
Speaker 13: bit more evenly balanced, what I mean. And again, Netflix

235
00:12:00,880 --> 00:12:05,760
Speaker 13: were clear yesterday that the majority of their growth will

236
00:12:05,800 --> 00:12:08,439
Speaker 13: be organic and they'll look at these deals where they

237
00:12:08,440 --> 00:12:10,760
Speaker 13: make sense. So you know, I don't think they're in

238
00:12:10,760 --> 00:12:14,439
Speaker 13: a position where they just need to buy a studios

239
00:12:14,480 --> 00:12:16,120
Speaker 13: business for the sake of it to kind of keep

240
00:12:16,120 --> 00:12:17,960
Speaker 13: them in the game to scale up. They have scale,

241
00:12:18,240 --> 00:12:22,120
Speaker 13: They're clearly a great producer of content, So I think

242
00:12:22,160 --> 00:12:25,160
Speaker 13: investor will be looking at them to be you know,

243
00:12:26,160 --> 00:12:29,719
Speaker 13: careful and cautious and consider about any transaction that they

244
00:12:29,760 --> 00:12:32,760
Speaker 13: were to make. Clearly, you know, it can bring some

245
00:12:32,800 --> 00:12:36,400
Speaker 13: strategic benefit to them, but price is going to be

246
00:12:36,559 --> 00:12:38,120
Speaker 13: an important factor for them here.

247
00:12:38,880 --> 00:12:40,960
Speaker 3: And in terms of the content coming up, We've got

248
00:12:41,040 --> 00:12:45,760
Speaker 3: the next season of Stranger Things, some other big blockbuster

249
00:12:45,960 --> 00:12:48,240
Speaker 3: hits that I think Netflix is hoping you're going to

250
00:12:48,520 --> 00:12:51,200
Speaker 3: pay off for them. What's the outlook going forward?

251
00:12:52,240 --> 00:12:54,439
Speaker 13: Yeah, I mean, you know, Netflix is still by far

252
00:12:54,440 --> 00:12:58,680
Speaker 13: and away that the leading streaming platform. We've seen a

253
00:12:58,760 --> 00:13:02,160
Speaker 13: number of other streaming platforms struggle to some degree. Is

254
00:13:02,200 --> 00:13:06,480
Speaker 13: what's going on Warner Brothers. So, you know, I think

255
00:13:06,600 --> 00:13:11,160
Speaker 13: that they've got a great rhythm of producing content and

256
00:13:11,679 --> 00:13:15,679
Speaker 13: building the customer base and also pushing through pricing creases.

257
00:13:15,679 --> 00:13:18,480
Speaker 13: And obviously they've got the ads business, which is still

258
00:13:18,760 --> 00:13:24,040
Speaker 13: relatively young but expanding, and that that's going to continue

259
00:13:24,080 --> 00:13:25,760
Speaker 13: to be an extra leg of growth of them. So

260
00:13:27,200 --> 00:13:30,720
Speaker 13: as streaming platforms go, they're in a very strong position.

261
00:13:31,280 --> 00:13:33,360
Speaker 3: Just about a minute left here, but we got some

262
00:13:33,600 --> 00:13:36,439
Speaker 3: pretty significant news, it seems, in the tech space, with

263
00:13:36,520 --> 00:13:39,920
Speaker 3: this report from Bloomberg News that Google's making a deal

264
00:13:39,960 --> 00:13:43,360
Speaker 3: on cloud compute power with Anthropic. What's your read on that.

265
00:13:44,160 --> 00:13:47,800
Speaker 13: Yeah, so Anthropic obviously a big rival to open Ai.

266
00:13:48,400 --> 00:13:52,480
Speaker 13: Anthropics large language models called Claude. We're going to have

267
00:13:52,480 --> 00:13:55,480
Speaker 13: to wait to see the details of this transaction media.

268
00:13:55,800 --> 00:13:58,960
Speaker 13: The bloombook story talks about the deal worth tens of

269
00:13:59,000 --> 00:14:03,360
Speaker 13: billions of die I think, you know, we've seen a

270
00:14:03,400 --> 00:14:08,240
Speaker 13: lot of so called circular deals in in the AI

271
00:14:08,320 --> 00:14:10,720
Speaker 13: space recently, so this can be interesting whether this is

272
00:14:10,760 --> 00:14:13,240
Speaker 13: like just more of a straightforward commercial deal or whether

273
00:14:13,280 --> 00:14:17,360
Speaker 13: there's essentially an exchange of equity for the services Google

274
00:14:17,480 --> 00:14:20,800
Speaker 13: is going to provide. Now, Google is already an investor

275
00:14:20,800 --> 00:14:24,320
Speaker 13: of the tune of three billion dollars into Anthropic, but

276
00:14:24,400 --> 00:14:27,800
Speaker 13: it's also sits alongside a co investor that's Amazon, and

277
00:14:27,880 --> 00:14:31,000
Speaker 13: so far Amazon's been a big provider of the kind

278
00:14:31,000 --> 00:14:34,600
Speaker 13: of cloud services to Anthropic, and this is going to

279
00:14:34,600 --> 00:14:38,200
Speaker 13: take some of that business away from from Amazon going forward.

280
00:14:38,240 --> 00:14:40,200
Speaker 13: So I think it. You know, we'll have to wait

281
00:14:40,240 --> 00:14:42,560
Speaker 13: to see the details in the structure of the transaction,

282
00:14:42,760 --> 00:14:46,000
Speaker 13: but in big picture terms, it looks like a good

283
00:14:46,040 --> 00:14:48,920
Speaker 13: deal for Google in terms of boosting their cloud business.

284
00:14:50,360 --> 00:14:53,800
Speaker 2: This is Bloombergy Daybreak, your morning podcast and the stories

285
00:14:53,880 --> 00:14:56,880
Speaker 2: making news from law Street to Washington and beyond.

286
00:14:57,160 --> 00:14:59,520
Speaker 3: Look for us on your podcast feed by six a m.

287
00:14:59,560 --> 00:15:03,000
Speaker 3: Eastern each morning, on Apple, Spotify, or anywhere else you listen.

288
00:15:03,200 --> 00:15:06,040
Speaker 2: You can also listen live each morning starting at five

289
00:15:06,080 --> 00:15:08,800
Speaker 2: am Wall Street time on Bloomberg eleven three to zero

290
00:15:08,800 --> 00:15:11,720
Speaker 2: in New York, Bloomberg in ninety nine to one in Washington,

291
00:15:11,760 --> 00:15:15,720
Speaker 2: Bloomberg ninety two nine in Boston and nationwide on serious

292
00:15:15,920 --> 00:15:17,480
Speaker 2: XM Channel one twenty one.

293
00:15:17,880 --> 00:15:20,600
Speaker 3: Plus listen coast to coast on the Bloomberg Business App

294
00:15:20,640 --> 00:15:23,400
Speaker 3: now with Apple CarPlay and Android auto interfaces.

295
00:15:23,680 --> 00:15:26,680
Speaker 2: And don't forget to subscribe to Bloomberg News Now. It's

296
00:15:26,720 --> 00:15:29,440
Speaker 2: the latest news whenever you want it in five minutes

297
00:15:29,560 --> 00:15:32,680
Speaker 2: or less. Search Bloomberg News Now and your favorite podcast

298
00:15:32,680 --> 00:15:36,880
Speaker 2: platform to stay informed all day long. I'm Karen Moscow.

299
00:15:36,640 --> 00:15:39,160
Speaker 3: And I'm Nathan Hager. Join us again tomorrow morning for

300
00:15:39,240 --> 00:15:41,160
Speaker 3: all the news you need to start your day right

301
00:15:41,200 --> 00:15:42,640
Speaker 3: here on Bloomberg Day Bray