Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: Karen, we begin with some big tech earnings disappointments, starting
Speaker 3: with Netflix. Those shares are down nearly seven percent in
Speaker 3: early trading. The world's most valuable entertainment company posted quarterly
Speaker 3: operating income of almost three hund a quarter billion dollars
Speaker 3: that was about four hundred million below analyst estimates. Netflix
Speaker 3: says a tax dispute with Brazil cut into its third
Speaker 3: quarter results. On the company conference call, Netflix co CEO
Speaker 3: Ted Sarandos address speculation the company's weighing bids for parts
Speaker 3: of Warner Brothers Discovery.
Speaker 4: We've been very clear in the past that we have
Speaker 4: no interest in owning legacy media networks, so there is
Speaker 4: no change there. But in general, we believe that we
Speaker 4: can be and we will be choosy. We have a
Speaker 4: great business. We're predominantly focused on growing organically, investing aggressively
Speaker 4: and responsibly into the growth, and returning access cash flow
Speaker 4: to shareholders through our shot to share repurchase.
Speaker 3: Netflix co CEO Ted Sarando says the company had to
Speaker 3: pay about six hundred and nineteen million dollars to settle
Speaker 3: a multi year tax dispute with Brazil going back to
Speaker 3: twenty twenty two. He says the company would have beaten
Speaker 3: forecasts if not for that expense.
Speaker 2: Nathan. Another earnings disappointment has shares of Texas Instruments down
Speaker 2: almost nine percent. The biggest maker of analog chips gave
Speaker 2: a lackluster forecast for the current period, adding to concern
Speaker 2: that a ship industry recovery is sputtering well.
Speaker 3: Staying in tech, Karen Bloomberg News has learned Google is
Speaker 3: in talks for a mega deal with artificial intelligence company
Speaker 3: and Thropic. Let's get the very latest on that with
Speaker 3: Bloomberg's John Tucker.
Speaker 5: John, good morning, Good morning, Nathan. You have the race
Speaker 5: for AI dominance may have gotten more intense. If this
Speaker 5: deal goes through, Google would provide Anthropic with computing power
Speaker 5: worth tens of billions of dollars. It would allow Anthropic
Speaker 5: to use Google's chip's custom designed to accelerate machine learning workloads,
Speaker 5: and it would further cement the relationship between Google and
Speaker 5: the AI startup founded in twenty twenty one by former
Speaker 5: Open Ai employees San Francisco based Anthropic, best known for
Speaker 5: its Claud family of large language models, which compete directly
Speaker 5: with Open Ai. Google has previously invested about three billion
Speaker 5: dollars in Anthropic and Google parent Alphabet up one point
Speaker 5: two percent pre market, New York. I'm John Tucker, Bloomberg Radio.
Speaker 2: All right, John, thank you. We turned now to commodities,
Speaker 2: where gold and silver are rebounding from yesterday's selloff. Gold
Speaker 2: fell nearly six percent yesterday for its biggest inter day
Speaker 2: drop in more than a dozen years. At one point,
Speaker 2: silver was down almost nine percent. Mike mcgloone covers commodities
Speaker 2: for Bloomberg Intelligence.
Speaker 6: Right now, it's just a little bit of profit taking,
Speaker 6: But it's what's happening in gold that's very disconcerting. As
Speaker 6: of yesterday, it was up sixty six percent in the year.
Speaker 6: That put it among the top four of the last
Speaker 6: one hundred years, with only nineteen seventy nine, seventy three,
Speaker 6: and seventy four ahead of it, So it's very expensive.
Speaker 6: At the same time, crude oil was down about twenty percent.
Speaker 6: That disparity around eighty six percent has never happened.
Speaker 2: It's never been that extreme in Bloombergy Intelligence Mike McGlone
Speaker 2: checking prices of gold right now Comec's gold is down
Speaker 2: about two tenths of up percent at four thousand, one
Speaker 2: hundred dollars announced. Silver is down about a third of
Speaker 2: up percent.
Speaker 3: Let's get to the latest, Karen. On the trade front,
Speaker 3: President Trump is sending a mixed message ahead of a
Speaker 3: possible meeting with Chinese President Shi Jin Pink During a
Speaker 3: White House rose guard in lunch with Senate Republicans, the
Speaker 3: President said the terifrate on Chinese exports would be about
Speaker 3: one hundred and fifty five percent by November first, if
Speaker 3: they don't make a deal.
Speaker 7: Now, we're going to have a fair deal. I think
Speaker 7: we're going to have a very successful meeting. Certainly, there
Speaker 7: are a lot of people that are waiting for it.
Speaker 7: Maybe it won't happen. Maybe it won't happen. Things can
Speaker 7: happen where for instance, maybe somebody will say I don't
Speaker 7: want to meet. It's too nasty, But it's really not nasty.
Speaker 7: It's just business.
Speaker 3: President Trump says he wants to make a good deal
Speaker 3: with China, but he says it has to be fair.
Speaker 3: Treasury Secretary Scott Bessett plans to meet with his Chinese
Speaker 3: counterpart over the weekend before the talks between Presidents Trump
Speaker 3: and she. Those are expected at the APEX summit in
Speaker 3: South Korea, though the date and time have not yet
Speaker 3: been announced.
Speaker 2: Nathan India and the US are reportedly near a trade
Speaker 2: deal that could lower tariffs on Indian exports to fifteen
Speaker 2: to sixteen percent from about fifty percent. The newspaper is
Speaker 2: reporting India may agree to gradually reduce its imports of
Speaker 2: Russian oil as part of the deal and allow the
Speaker 2: US to export more non genetically modified corn and soymeal.
Speaker 3: Overnight, Karen Russia launched multiple drone and missile strikes on Ukraine,
Speaker 3: as a planned second summit between President Trump and Russian
Speaker 3: President Vladimir Putin is thrown into jeopardy. The President address
Speaker 3: that possible meeting yesterday.
Speaker 8: I don't want to have a wasted meeting. I don't
Speaker 8: want to have a wasted time. So I'll see what happened.
Speaker 8: But when I said, go to the line, go to
Speaker 8: the line of the battle on the battlefield lines, and
Speaker 8: you pull back and you go home, and everybody takes
Speaker 8: some time off because you have two countries that are
Speaker 8: killing each other, two countries are losing five to seven
Speaker 8: thousand soldiers a week, So we'll see what happens. It's
Speaker 8: we haven't made a determination.
Speaker 3: Ar President Trump had said he planned to meet with
Speaker 3: President Putin in Budapest in the coming weeks.
Speaker 2: Now, Nathan to a report that's raising conflict of interest
Speaker 2: questions at the White House. According to The New York Times,
Speaker 2: President Trump is demanding the Justice Department pay him about
Speaker 2: two hundred and thirty million dollars for past investigations against him.
Speaker 2: That includes the probes into Russian interference in the twenty
Speaker 2: sixteen campaign and the FBI search of his Mara Lago home.
Speaker 2: President Trump appeared to acknowledge the report when he was
Speaker 2: asked about it in the Oval Office.
Speaker 8: We have numerous cases having to do with the fraud
Speaker 8: of the election, the twenty twenty election, and because of
Speaker 8: every thing that we found out, I guess they owe
Speaker 8: me a lot of money.
Speaker 2: By President Trump says if he gets the money, he
Speaker 2: would give it to charity or use it to restore
Speaker 2: the White House. Any decisions about paying the president's claims
Speaker 2: would be made by senior Justice Department officials, some of
Speaker 2: whom could be the president's own personal lawyers. The Justice
Speaker 2: Department says all its officials followed the guidance of career
Speaker 2: ethics officials.
Speaker 3: Let's turn back to the markets and earnings now, Karen,
Speaker 3: We're watching shares of Barclays. They're up about four percent.
Speaker 3: In Europe, the British lender raised its earnings guidance for
Speaker 3: this year and unveiled a five hundred million dollar stock buyback.
Speaker 3: We spoke with CEO CS van Kata Christian.
Speaker 9: We had a top line beat of eleven percent growth
Speaker 9: yere over year to seven point two billion. On the
Speaker 9: top line, we've had nine percent consecutive quarters of tangible
Speaker 9: net value growth.
Speaker 3: CEOCS van Kada Christian says Barclays is conducting a review
Speaker 3: of its entire Lorn portfolio after the collapse of Tricolor holdings.
Speaker 2: On the economic front, Nathan UK inflation unexpectedly held steady
Speaker 2: in September after food bills fell for the first time
Speaker 2: in sixteen months. Consumer prices rose three point eight percent
Speaker 2: from a year earlier. Data is fueling market bets on
Speaker 2: a Bank of England interest rate cut before the end
Speaker 2: of the year. Time now for a look at some
Speaker 2: of the other stories making news in New York and
Speaker 2: around the world. And for that we're joined by Blueberrys
Speaker 2: and Michael Bahr or Michael good.
Speaker 10: Morning, Good morning Careen. It is now date twenty two
Speaker 10: of the government shut down. Democrats say Republicans refuse to
Speaker 10: negotiate on Democratic demands for health care funds. President Trump
Speaker 10: says he'll discuss healthcare, but.
Speaker 8: I'd love to meet with them. I just want them
Speaker 8: to open up the country grace.
Speaker 10: Senate Democratic Leader Chuck Schumer says he and the House
Speaker 10: Minority leader have reached out to President Trump for a meeting.
Speaker 11: People are just struck of the difficulty they will be
Speaker 11: in not having health care, not being able to pay
Speaker 11: the rent if they pay for health care. They're just
Speaker 11: shocked at how bad this is. And Trump has an
Speaker 11: obligation to negotiate with this solve this problem.
Speaker 10: New York City's Canals Street vendors are nowhere to be seen,
Speaker 10: at least for now. There was an immigration crackdown in
Speaker 10: New York City as federal agents descended on Canal Street,
Speaker 10: famous for its bargain shopping and knockoff designer goods, and
Speaker 10: parts of Chinatown. The scene turned chaotic as agents made arrests.
Speaker 10: New York City Mayor Eric Adams's office said this was
Speaker 10: a federal action and the city officials were not involved
Speaker 10: in the operation. President Trump said that Allied nations in
Speaker 10: the Middle East were prepared to send troops into Gaza
Speaker 10: to confront Hamas if the group did not cease its
Speaker 10: alleged violations of his peace plan. There was violence just
Speaker 10: days ago, prompting Vice President JD. Evans to make a
Speaker 10: last minute trip to the Middle East.
Speaker 3: There are going to be hills and valleys. There are
Speaker 3: going to be moments where it looks like things aren't
Speaker 3: going particularly well. But given that, and given the history
Speaker 3: of conflict, I think that everybody should be proud of
Speaker 3: where we are today.
Speaker 10: Tonight is the second New York City mayoral debate Democrat
Speaker 10: Zoron Mamdani, former Governor Andrew Cuomo, running as an independent
Speaker 10: and Republican Curtis Sliva. We'll square off at LaGuardia Community College.
Speaker 10: Global News twenty four hours a day and whenever you
Speaker 10: want it with Bloomberg News Now. Michael barn This is
Speaker 10: Bloomberg Karen.
Speaker 2: Thanks Michael. Time now for our Bloomberg Sports update, and
Speaker 2: for that we bring in John stash.
Speaker 12: Hour thanks Aaron. Opening night of the NBA at Oklahoma City,
Speaker 12: the thunder hoisted their championship banner, got their rings, and
Speaker 12: for the sixth time ever a season opener went to
Speaker 12: double overtime. First time it's happened in two thousand and five.
Speaker 12: OKC beat Houston five to one twenty four. Last year's MVP,
Speaker 12: Shay Gildess Alexander scored thirty five points, the only five
Speaker 12: at halftime. Golden State the Lakers one nineteen to one
Speaker 12: oh nine. Kurt Suzuki, former Major League catcher never been
Speaker 12: a coach or manager, named the new manager of the
Speaker 12: La Angels. That's your Bloomberg Sports Update.
Speaker 2: Stay with us more from Bloomberg day Break coming up
Speaker 2: after this.
Speaker 1: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 1: and around the world on Bloomberg dot Com and the
Speaker 1: Bloomberg Business Appum. This is Bloomberg Daybreak.
Speaker 3: Good morning, I'm Nathan Hager. Investors were expecting a solid
Speaker 3: quarter from Netflix, and they mostly got it after the
Speaker 3: release of Kpop Demon Hunters and some other big hits
Speaker 3: during the quarter gone by. But a tax dispute with
Speaker 3: Brazil is putting a hit on the results for the
Speaker 3: streaming giant.
Speaker 5: Let's get more now.
Speaker 3: We're joined by Bloomberg Intelligence Senior Media and Tech analyst
Speaker 3: Matthew Bloxham. Matt, good morning. We are seeing a big
Speaker 3: drop in Netflix shares. Could this tax dispute be an
Speaker 3: ongoing overhang for Netflix? Is that what we're seeing in
Speaker 3: the price reaction this morning?
Speaker 13: Yeah, you know what, I think it's a bit of
Speaker 13: a red hirang. I mean that they would quiet say
Speaker 13: yesterday and saying that they didn't expect this dispute to
Speaker 13: have any impact on for profits. I think what we're
Speaker 13: seeing is more of a reaction to, you know, an
Speaker 13: inline performance, particularly on the top line, and I think
Speaker 13: people were expecting something a bit better than what they
Speaker 13: delivered on the back of that slate of popular and
Speaker 13: well received content and which also included a widely viewed
Speaker 13: live boxing event. So I think, you know, people just
Speaker 13: thought they'd done enough to boost the momentum just a
Speaker 13: bit more than they're guided to and we just saw
Speaker 13: it in line. And so I think it's just a
Speaker 13: little bit of a reaction to you know, that kind
Speaker 13: of whisper number being a bit better. But yeah, it
Speaker 13: came in a bit short.
Speaker 3: And coming into these earnings, there's been all this you know,
Speaker 3: speculation around what's going to happen with Warner Brothers Discovery.
Speaker 3: The reports confirmed that the Netflix is part of that discussion.
Speaker 3: Does it need to be more a part of that
Speaker 3: discussion to get investors more enthused about this stock?
Speaker 1: Now?
Speaker 13: I think, you know, the investors are probably a little
Speaker 13: bit more evenly balanced, what I mean. And again, Netflix
Speaker 13: were clear yesterday that the majority of their growth will
Speaker 13: be organic and they'll look at these deals where they
Speaker 13: make sense. So you know, I don't think they're in
Speaker 13: a position where they just need to buy a studios
Speaker 13: business for the sake of it to kind of keep
Speaker 13: them in the game to scale up. They have scale,
Speaker 13: They're clearly a great producer of content, So I think
Speaker 13: investor will be looking at them to be you know,
Speaker 13: careful and cautious and consider about any transaction that they
Speaker 13: were to make. Clearly, you know, it can bring some
Speaker 13: strategic benefit to them, but price is going to be
Speaker 13: an important factor for them here.
Speaker 3: And in terms of the content coming up, We've got
Speaker 3: the next season of Stranger Things, some other big blockbuster
Speaker 3: hits that I think Netflix is hoping you're going to
Speaker 3: pay off for them. What's the outlook going forward?
Speaker 13: Yeah, I mean, you know, Netflix is still by far
Speaker 13: and away that the leading streaming platform. We've seen a
Speaker 13: number of other streaming platforms struggle to some degree. Is
Speaker 13: what's going on Warner Brothers. So, you know, I think
Speaker 13: that they've got a great rhythm of producing content and
Speaker 13: building the customer base and also pushing through pricing creases.
Speaker 13: And obviously they've got the ads business, which is still
Speaker 13: relatively young but expanding, and that that's going to continue
Speaker 13: to be an extra leg of growth of them. So
Speaker 13: as streaming platforms go, they're in a very strong position.
Speaker 3: Just about a minute left here, but we got some
Speaker 3: pretty significant news, it seems, in the tech space, with
Speaker 3: this report from Bloomberg News that Google's making a deal
Speaker 3: on cloud compute power with Anthropic. What's your read on that.
Speaker 13: Yeah, so Anthropic obviously a big rival to open Ai.
Speaker 13: Anthropics large language models called Claude. We're going to have
Speaker 13: to wait to see the details of this transaction media.
Speaker 13: The bloombook story talks about the deal worth tens of
Speaker 13: billions of die I think, you know, we've seen a
Speaker 13: lot of so called circular deals in in the AI
Speaker 13: space recently, so this can be interesting whether this is
Speaker 13: like just more of a straightforward commercial deal or whether
Speaker 13: there's essentially an exchange of equity for the services Google
Speaker 13: is going to provide. Now, Google is already an investor
Speaker 13: of the tune of three billion dollars into Anthropic, but
Speaker 13: it's also sits alongside a co investor that's Amazon, and
Speaker 13: so far Amazon's been a big provider of the kind
Speaker 13: of cloud services to Anthropic, and this is going to
Speaker 13: take some of that business away from from Amazon going forward.
Speaker 13: So I think it. You know, we'll have to wait
Speaker 13: to see the details in the structure of the transaction,
Speaker 13: but in big picture terms, it looks like a good
Speaker 13: deal for Google in terms of boosting their cloud business.
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