WEBVTT - Bloomberg Daybreak: October 28, 2022 - Hour 2 (Radio) 0:00:01.120 --> 0:00:04.400 Live from the Bloomberg Interactive Berger Studios. This is Bloomberg 0:00:04.440 --> 0:00:08.319 day Break for Friday, October two. Coming up this hour, 0:00:08.560 --> 0:00:12.159 Amazon shares plunge after becoming the latest tech giant to 0:00:12.240 --> 0:00:15.920 post disappointed earnings. Apple A voids the tech route despite 0:00:15.920 --> 0:00:19.160 warning of a holiday slowdown. The earning spotlight turns to 0:00:19.239 --> 0:00:21.800 Big Oil. X On Mobile and Chevron are on tap 0:00:21.880 --> 0:00:25.360 to report, and Elon Musk officially takes over as CEO 0:00:25.560 --> 0:00:28.560 of Twitter New York City as its first ever female 0:00:28.680 --> 0:00:31.280 f d n Y commissioner. Plus, we're learning more about 0:00:31.280 --> 0:00:35.120 the hijack, passenger bus and queens. I'm Michael Barr. More ahead, 0:00:35.120 --> 0:00:37.839 I'm John Stageward swarts the Nets lost in overtime, the 0:00:37.920 --> 0:00:40.720 Ravens beat the Bucks, the Phillies and Astros begin the 0:00:40.720 --> 0:00:45.760 World series tonight in Houston. That's all training ahead on 0:00:45.880 --> 0:00:48.680 Bloomberg day Break on Bloomberg. He Live in Free on 0:00:48.800 --> 0:00:53.159 New York, Bloomberg on Washington, d C, Bloomberg one oh 0:00:53.280 --> 0:00:58.040 six one, Boston, Bloomberg nine sixties and Francisco Sirius XM 0:00:58.080 --> 0:01:01.480 one nineteen and around the world on Bloomberg Radio dot 0:01:01.520 --> 0:01:08.120 Com and via the Bloomberg Business. Then good morning. I'm 0:01:08.200 --> 0:01:11.240 Nathan Hagar and I'm Karen. Moscow and US stock index 0:01:11.319 --> 0:01:14.800 futures are lower this morning, dragged down by NASDACK futures, 0:01:14.840 --> 0:01:16.920 which are leading the declines. It is coming up to 0:01:16.920 --> 0:01:18.720 six oh one on Wall Street. We checked the markets 0:01:18.720 --> 0:01:21.880 every fifteen minutes throughout the trading day on Bloomberg SMP 0:01:22.040 --> 0:01:24.840 futures down twenty four points, now futures down forty one 0:01:24.880 --> 0:01:28.640 and NASDACK futures down one. One. Ten year treasury down 0:01:28.640 --> 0:01:31.560 twenty thirty seconds yield four point one percent, and they 0:01:31.640 --> 0:01:35.679 yield on the two year four point three seven percent. Nathan, Karen, 0:01:35.680 --> 0:01:37.880 we begin with an earnings related sell off. It's on 0:01:37.920 --> 0:01:40.679 track to white more than six hundred billion dollars in 0:01:40.760 --> 0:01:43.520 market value this week alone, and that's just from America's 0:01:43.600 --> 0:01:47.280 five largest tech companies. The latest culprit is Amazon. Those 0:01:47.280 --> 0:01:50.560 shares are down thirteen percent in early trading following earnings 0:01:50.600 --> 0:01:53.440 that fell short ed. Ludlow has details from our Bloomberg 0:01:53.480 --> 0:01:56.440 nine sixty newsroom in San Francisco. There was a severe 0:01:56.520 --> 0:01:59.600 after hours reactions Amazon's forecast of the fourth Courts of 0:01:59.640 --> 0:02:01.840 the Red You will be between a hundred and forty 0:02:01.840 --> 0:02:05.040 and a hundred forty eight billion dollars significantly below what 0:02:05.160 --> 0:02:07.080 the street is looking for. And that's a theme of 0:02:07.160 --> 0:02:10.880 this earning season. Right investors punishing companies, not just those 0:02:10.919 --> 0:02:12.920 missing on the top and bottom line, but those giving 0:02:12.960 --> 0:02:16.320 tepid forecasts. There was a long list of problems to Amazon. Really, 0:02:16.360 --> 0:02:18.640 currency continues to be a head wind to the tune 0:02:18.680 --> 0:02:21.200 of nine hundred million dollars in the course had gone 0:02:21.200 --> 0:02:23.840 and it will continue to impact Amazon going into the 0:02:23.840 --> 0:02:26.720 final three months of this year. Ed Lovelow for Bloomberg 0:02:26.720 --> 0:02:30.560 News in San Francisco grated, thanks well. Apple has managed 0:02:30.600 --> 0:02:33.160 to avoid the tech route. It shares are up almost 0:02:33.200 --> 0:02:36.000 one percent in early trading. Those sales of iPhones and 0:02:36.080 --> 0:02:39.880 services were softer than expected. Apple's revenue and profit both 0:02:39.960 --> 0:02:44.000 topped estimates. Still apples CFO Luca my history warrants of 0:02:44.040 --> 0:02:48.160 a holiday slowdown. Overall, we believe to company year over 0:02:48.280 --> 0:02:52.639 year revenue performance will decelerate during the December quarter as 0:02:52.680 --> 0:02:56.160 compared to the September quarter for a number of reasons. First, 0:02:56.720 --> 0:03:00.720 we expect nearly ten percentage points of negative year over 0:03:00.840 --> 0:03:04.400 your impact from fort in exchange. Apple CFO look at 0:03:04.400 --> 0:03:07.880 my story, says sales of Mac computers with a client substantially. 0:03:08.160 --> 0:03:11.120 Stay tuned for analysis on both Apple and Amazon coming 0:03:11.160 --> 0:03:13.000 up shortly when we speak live with the loop a 0:03:13.080 --> 0:03:15.480 Ventures co founder Gene Munster, and we have some more 0:03:15.480 --> 0:03:17.240 earnings in the meantime to get you caught up on 0:03:17.320 --> 0:03:19.800 Karen's Shares of Intel or up almost five percent in 0:03:19.840 --> 0:03:22.320 early trading. The chip maker's pledging a slash costs to 0:03:22.360 --> 0:03:25.119 combat a persistent slump and computer demand that's dragging down 0:03:25.160 --> 0:03:28.120 sales and profit. Gilliad Sciences shares are up almost five 0:03:28.120 --> 0:03:30.520 percent as well. That company boasted its earnings guidance for 0:03:30.520 --> 0:03:33.320 the full year, and shares of Pinterest are hired by 0:03:33.320 --> 0:03:36.520 almost eight percent. The social media company reported earnings and 0:03:36.560 --> 0:03:39.520 revenue that beat estimates well Up Next Nathan, the focus 0:03:39.560 --> 0:03:42.640 turns to big oil. Both Exxon Mobile and Chevron report 0:03:42.720 --> 0:03:46.640 this morning, and we get a preview from Bloomberg's Jeff Bellinger. Overall, 0:03:46.720 --> 0:03:48.920 the third quarter was likely a good one for the 0:03:48.960 --> 0:03:52.920 oil giants thanks to oil prices that remained elevated through 0:03:53.080 --> 0:03:56.360 most of the last three months. Bloomberg Intelligence says the 0:03:56.400 --> 0:03:59.680 company's fourth quarter outlooks will be key. It raised the 0:03:59.680 --> 0:04:03.040 post ability of weaker cash flow for Exxon Mobile due 0:04:03.040 --> 0:04:05.920 to falling crude and gas prices, and said there is 0:04:05.960 --> 0:04:09.400 the potential for slower profit growth at Chevron. X On 0:04:09.480 --> 0:04:12.520 Mobile put out a pre earnings release to let investors 0:04:12.560 --> 0:04:16.160 know that its chemicals and refining businesses were down compared 0:04:16.200 --> 0:04:20.480 to the second quarter. Jeff Blinger, Bloomberg Day Break, Thanks Jeff. Meantime, 0:04:20.480 --> 0:04:23.880 President Biden's demanding oil companies cut prices. That's after Shell 0:04:24.000 --> 0:04:27.400 reported its second highest earnings ever. The President says gasoline 0:04:27.400 --> 0:04:31.200 prices should reflect what energy companies pay for oil. Last quarter. 0:04:31.960 --> 0:04:35.120 The five largest oil companies made in the last quarter 0:04:35.839 --> 0:04:41.719 seventy billion dollars and profit in ninety days. Those comments 0:04:41.720 --> 0:04:44.760 from President Biden too a sharp response from oil industry leaders. 0:04:44.760 --> 0:04:47.080 They say refiners don't set the price of the pump 0:04:47.200 --> 0:04:50.839 and that Washington should leverage US energy production. But another 0:04:50.920 --> 0:04:54.080 major story we're following this morning, Nathan closes the book 0:04:54.080 --> 0:04:57.520 on a six month takeover Saga. Elon Musk has completed 0:04:57.520 --> 0:05:00.919 his forty four billion dollar acquisition of Twitter, and Bloomberg 0:05:00.920 --> 0:05:03.919 News has learning plans to assume the role of CEO today. 0:05:04.320 --> 0:05:06.320 There will surely be more changes on the way. We 0:05:06.320 --> 0:05:09.960 get details from Bloomberg Intelligence analyst Matthew Blosom, There's been 0:05:10.000 --> 0:05:13.040 a lot of speculation about how much Elon Musk is 0:05:13.080 --> 0:05:15.080 going to change Twister. You know how the room is 0:05:15.120 --> 0:05:19.000 about seven trib job cuts, the reinstatement of people like 0:05:19.240 --> 0:05:22.080 Donald Trump to the platform, a complete change in the 0:05:22.120 --> 0:05:24.840 business model, like twelve months. You could see him introduce 0:05:24.960 --> 0:05:27.680 some kind of subscription tire to the business. All sorts 0:05:27.720 --> 0:05:29.280 of things could change. I think it's gonna be an 0:05:29.279 --> 0:05:31.479 interesting few days and months, and I'm sure we're gonna 0:05:31.480 --> 0:05:33.880 hear quite a bit from him today about his plans. 0:05:34.120 --> 0:05:37.560 Bloomberg Intelligence analyst Matthew Blosom says Musk is expected to 0:05:37.600 --> 0:05:40.440 remain CEO in the interim, but may eventually see the 0:05:40.520 --> 0:05:43.400 rule in the long term. Turning to the U. S. Economy, Now, Karen, 0:05:43.440 --> 0:05:45.200 we wrap up the week with a few notable data 0:05:45.240 --> 0:05:48.280 points covering inflation, sentiment, and spending. We get more from 0:05:48.320 --> 0:05:51.839 bloomberg'san he Dells Junis the government issues data in September 0:05:51.880 --> 0:05:54.520 household income and spending. Today in Wall Street, will keep 0:05:54.520 --> 0:05:57.240 an eye on inflation figures tied to the report. Bloomberg 0:05:57.240 --> 0:06:00.000 Economics is any surprise could influence the course of Fellow 0:06:00.000 --> 0:06:03.440 will reserve interest rate hikes meantime. Bloomberg Economics as today's 0:06:03.520 --> 0:06:07.479 University of Michigan consumer sentiment and NIX relate October will 0:06:07.520 --> 0:06:11.600 remain low by historic standards, highlighting recession risks. Also one 0:06:11.640 --> 0:06:15.000 tap today the employment Costs index and pending home sales. 0:06:16.120 --> 0:06:18.839 Bloomberg day Break r if any thanks in Asia overnight 0:06:18.880 --> 0:06:21.599 it was all about the Yemen. The currency has rebounded 0:06:21.640 --> 0:06:24.400 this week, but is reversing that trend this morning, wakening 0:06:24.480 --> 0:06:28.200 to one seven point seven zero against the dollar, as 0:06:28.240 --> 0:06:30.719 after the BANKA Japan stood pad on its ultra low 0:06:30.760 --> 0:06:34.200 interest rate policy. On Bloomberg Daybreak, Asia anchor Brian Curtis 0:06:34.200 --> 0:06:36.520 has a story, This is the b o J pushing 0:06:36.520 --> 0:06:39.760 back against speculation it might change its tumb no go. 0:06:40.320 --> 0:06:42.880 The board left the negative rate, the ten uere yield cap, 0:06:42.920 --> 0:06:46.039 and the asset purchases unchanged. This was in line with 0:06:46.080 --> 0:06:49.000 all forty nine economists surveyed. The b o J did 0:06:49.080 --> 0:06:51.920 raise the inflation for a cast to two point nine 0:06:51.920 --> 0:06:54.919 percent for the year ending in March. A predicted price 0:06:54.960 --> 0:06:57.479 growth will slow to one point six percent in the 0:06:57.520 --> 0:07:00.280 next twelve months. The b o J is sucking a 0:07:00.400 --> 0:07:03.440 tight rope here as the Dobish dance puts downward pressure 0:07:03.440 --> 0:07:06.599 on the end while the government is spending billions supporting it. 0:07:06.800 --> 0:07:09.800 Brian Curtis Bloomberg, Gabrie right, Brian, Thanks s and P. 0:07:10.000 --> 0:07:13.120 Futures down twenty four points down, Futures down fifty Nasdack 0:07:13.200 --> 0:07:16.160 Futures down one twenty one and straight ahead your latest 0:07:16.160 --> 0:07:19.520 local headlines plus a check of sports. And this is Bloomberg. 0:07:23.040 --> 0:07:25.320 Thanks Karen. Six oh seven on Wall Street, forty six 0:07:25.360 --> 0:07:28.040 degrees in Central Park, slow on the b que East, 0:07:28.080 --> 0:07:31.160 found between Hamilton Avenue and Cabin Plaza. Details coming up 0:07:31.160 --> 0:07:33.680 in traffic. First Michael Barr with what else is going 0:07:33.720 --> 0:07:35.600 on in New York and around the world. Good morning Michael, 0:07:35.680 --> 0:07:38.560 Good morning Nathan. We're learning more about the Nightmari's commute 0:07:38.560 --> 0:07:41.880 for public transit bus riders in New York City. Police 0:07:41.880 --> 0:07:46.200 saying m T A bus was hijacked in Queens yesterday. 0:07:46.280 --> 0:07:49.200 The bus driver is hailed as a hero after the suspect, 0:07:49.440 --> 0:07:51.640 armed with what turned out to be a bb gun, 0:07:52.080 --> 0:07:55.720 confronted the veteran driver. The forty four year old suspected 0:07:55.760 --> 0:07:58.680 the gunman, Dwayne Gandy, was taken into custody after the 0:07:58.720 --> 0:08:02.200 bus crashed into a ute lity pole. In MYPD, Deputy 0:08:02.280 --> 0:08:05.280 Chief Jerry O'Sullivan, I definitely want to command the driver 0:08:05.480 --> 0:08:08.200 for his actions. He did not move the bus until 0:08:08.280 --> 0:08:11.080 everyone was off that bus. I believe the driver was 0:08:11.160 --> 0:08:14.680 calm and did a great job. Deputy Chief O'Sullivan says 0:08:14.720 --> 0:08:17.600 the bus driver jumped out of the driver's side window 0:08:17.680 --> 0:08:21.640 to eventually escape. New York City Mayor Eric Adams appointed 0:08:21.680 --> 0:08:25.160 Acting Fire Commissioner Laura Kavanaugh to leave the Department on 0:08:25.200 --> 0:08:28.640 a permanent basis, making her the first female commissioner in 0:08:28.680 --> 0:08:31.320 the one hundred fifty seven year history of the Fire 0:08:31.360 --> 0:08:33.880 Department of New York. While we put in place in 0:08:34.040 --> 0:08:38.280 national search, looking over several names and interviewing several candidates, 0:08:39.040 --> 0:08:43.480 kept coming back to Laura over and over again, over 0:08:43.520 --> 0:08:47.720 and over again. I just kept coming back to her leadership. 0:08:48.000 --> 0:08:51.120 After getting sworn in, Kavanaugh says her journey to this 0:08:51.200 --> 0:08:55.000 moment was unexpected. New York City story is fundamentally one 0:08:55.120 --> 0:08:59.439 of making the impossible possible. Kavanaugh, who is forty, has 0:08:59.480 --> 0:09:03.960 served as acting commissioner since the retirement of Commissioner Daniel 0:09:04.040 --> 0:09:07.520 Nigro in February. Election sites across the country have been 0:09:07.720 --> 0:09:12.240 encountering threats and intimidation since early voting began in some states. 0:09:12.640 --> 0:09:16.240 Out of concerns for the safety of poll workers and voters, 0:09:16.280 --> 0:09:19.439 the NYPD has announced that they will be keeping a 0:09:19.440 --> 0:09:22.960 closer eye on polling places. With the mid term elections 0:09:23.120 --> 0:09:26.120 less than two weeks away, the NYPD is warning that 0:09:26.240 --> 0:09:30.840 racially motivated and anti government extremists good target poll workers, 0:09:30.880 --> 0:09:35.559 political rallies, politicians, and voting sites. Police say there are 0:09:35.600 --> 0:09:38.960 currently no specific threats in the city. North Korea fired 0:09:38.960 --> 0:09:42.280 too short range ballistic missiles today as it continues a 0:09:42.320 --> 0:09:45.880 barrage of launches in opposition to US and South Korean 0:09:45.880 --> 0:09:49.200 military drills. Global News twenty four hours a day on 0:09:49.400 --> 0:09:52.840 air and on Bloomberg Quicktake, powered by more than twenty 0:09:52.880 --> 0:09:55.840 seven hundred journalists and analysts more than a hundred twenty countries. 0:09:56.200 --> 0:10:03.760 Michael Barrn This is Bloomberg, Nathan. Thanks Michael. Turn up 0:10:03.760 --> 0:10:05.520 to six ten on Wall Street time for the Bloomberg 0:10:05.559 --> 0:10:07.439 Sports Update, brought to you you by Tri State OUTI. Here's 0:10:07.480 --> 0:10:10.360 John Stenshower. All right, Nathan. After a turbulent off season 0:10:10.440 --> 0:10:13.000 with a star player demanded a trade unless the coach 0:10:13.000 --> 0:10:15.120 and Geneal Menser fired. Maybe not a surprise. The Nets 0:10:15.120 --> 0:10:17.480 are off to the slow start. They lost at Barkley's 0:10:17.520 --> 0:10:22.400 Dadallas one overtime. Luke at Donsitch forty one point to 0:10:22.440 --> 0:10:24.520 the triple double for the Mass Kevin Duran, who was 0:10:24.640 --> 0:10:27.880 sent to that trade demand, scored thirty seven points. Kyrie 0:10:27.920 --> 0:10:29.920 even had thirty nine, but the Nets too much of 0:10:29.960 --> 0:10:33.080 a two man team. The duo took fifty two shots 0:10:33.080 --> 0:10:34.719 and the rest of the team only forty one, and 0:10:34.760 --> 0:10:36.640 the Nets are one and four. The Knicks had better 0:10:36.640 --> 0:10:39.360 balance than three and one. They played tonight in Milwaukee 0:10:39.360 --> 0:10:41.520 at Tampa Bay. Bucks started the season two and oh. 0:10:41.679 --> 0:10:44.760 Now they're three and five. Lost at home to Baltimore 0:10:44.800 --> 0:10:47.440 twenty seven to twenty two. The Ravens out rushed Tampa 0:10:47.480 --> 0:10:51.319 Bay two thirty one to forty four years. Tom Brady 0:10:51.360 --> 0:10:57.360 on what went wrong. They're down throwing run games at 0:10:57.400 --> 0:11:07.360 two point plays and short yardage start first quarter, started 0:11:07.400 --> 0:11:11.480 the third quarter very good offense football. They're only positive 0:11:11.520 --> 0:11:14.160 for Tampa right now in the NFC souve No. One's 0:11:14.200 --> 0:11:16.120 over five hundred, so the bus can win the division, 0:11:16.160 --> 0:11:17.920 but it's hard to see them making a Super Bowl 0:11:18.000 --> 0:11:19.840 run the way they're playing now, Giants or six and 0:11:19.880 --> 0:11:22.440 one without any production from last year's first round draft pick, 0:11:22.480 --> 0:11:25.760 wide receiver Kedarius Tony. He hurt one hamstring and then 0:11:25.800 --> 0:11:28.560 the other, and the Giants just traded Tony to Kansas 0:11:28.600 --> 0:11:31.240 City for third and sixth round draft picks. World Series 0:11:31.280 --> 0:11:33.800 begins tonight in Houston. The Astros won a hundred and 0:11:33.840 --> 0:11:36.600 six games in the regular season, the Phillies one eight seven. 0:11:36.640 --> 0:11:41.320 That's the largest disparity since oh six. That's nineteen o six. 0:11:41.400 --> 0:11:45.400 John statually wear Bluebern Sports Okay, John, thanks SMP features 0:11:45.440 --> 0:11:48.200 down down twenty six points, South Features down sixty six 0:11:48.320 --> 0:11:51.160 NASTAC futures leading the declines down down a hundred twenty 0:11:51.200 --> 0:11:54.640 three points or one point one percent. Amazon shares down 0:11:54.679 --> 0:11:57.920 twelve point seven per cent. We'll talk about tech earnings 0:11:57.960 --> 0:12:02.320 next with Gene Munster, the co founder of Loop Ventures. 0:12:02.320 --> 0:12:09.400 This is Bloomberg. Bloomberg Sports is brought to you by Audie. 0:12:09.400 --> 0:12:11.360 Don't let someone else drive off in the autie model 0:12:11.400 --> 0:12:13.880 you've always wanted. Visit your local price state autie dealer 0:12:13.920 --> 0:12:15.760 to get behind the wheel of yours today, or visit 0:12:15.760 --> 0:12:23.360 autie offers dot com for more information. Markets, headlines and 0:12:23.440 --> 0:12:26.720 breaking news twenty four hours a day at Bloomberg dot Com, 0:12:26.800 --> 0:12:29.920 The Bloomberg Business at and at Bloomberg Quick Tape. This 0:12:30.320 --> 0:12:39.719 is a Bloomberg Business Clash and I'm Karen Moscow. This 0:12:39.880 --> 0:12:42.240 updates brought to you by s C. I said, managers 0:12:42.280 --> 0:12:44.079 don't get results that are off the charts when their 0:12:44.080 --> 0:12:47.080 solutions are off the shelf. Learned how seis operating platform 0:12:47.160 --> 0:12:50.439 can turn infrastructure into a competitive advantage at se i 0:12:50.480 --> 0:12:53.880 C dot com. Slash check watching some earnings crossing the 0:12:53.920 --> 0:12:58.200 Bloomberg Chevron blowing past analysts estimates for the second highest 0:12:58.280 --> 0:13:01.920 earnings in history, ex olerating a profit hall for the 0:13:01.960 --> 0:13:05.080 world's biggest oil explorers and Chevron shares of two point 0:13:05.160 --> 0:13:08.840 three and early trading. Meanwhile, futures are lower. SNP futures 0:13:08.840 --> 0:13:11.319 down twenty eight points and now futures down seventy four 0:13:11.480 --> 0:13:15.120 Fastack futures falling down one and a ten year treasury 0:13:15.160 --> 0:13:18.760 down seconds on four point zero zero percent. And as 0:13:18.760 --> 0:13:21.360 a Bloomberg Business Flash now here Smuggle Barr with Moore 0:13:21.440 --> 0:13:23.840 on what's going on around the world. Michael, Karen, thank 0:13:23.920 --> 0:13:27.720 you very much. With poles showing Republicans gaining ground. Democrats 0:13:27.720 --> 0:13:32.080 are turning to former President Obama as the mid terms approach. 0:13:32.360 --> 0:13:35.840 He's campaigning today in Atlanta for Senator Raphael Warnock, who 0:13:35.880 --> 0:13:38.280 was locked in a tight race against former football star 0:13:38.360 --> 0:13:41.559 Herschel Walker. Thursday Night football, the Ravens beat the Buccaneers 0:13:41.559 --> 0:13:45.079 two tonight, Game one of the World Series between the 0:13:45.120 --> 0:13:48.600 Phillies and the Astros. In the NBA, the Nets lost, 0:13:48.679 --> 0:13:52.360 the Warriors won NHL, the Bruins won, the Capital's lost. 0:13:52.480 --> 0:13:55.680 Global News twenty four hours a day on air and 0:13:55.920 --> 0:13:59.160 on Bloomberg Quickdake, powered by more than twenty seven hundred 0:13:59.200 --> 0:14:03.480 journalists and analyst are more than countries him Michael Barr, 0:14:03.520 --> 0:14:06.760 and this is Bloomberg, Nathan. Thanks Michael. At six nineteen 0:14:06.760 --> 0:14:09.640 on Wall Street Live from the Bloomberg Interactive Brokers Studios. 0:14:09.720 --> 0:14:11.640 This is Bloomberg day Break. At the end of a 0:14:11.720 --> 0:14:14.680 bruising week for tech earnings, Amazon is the latest stock 0:14:14.760 --> 0:14:17.080 to get punished down, down twelve and three quarters per 0:14:17.120 --> 0:14:20.000 cent on a week holiday forecast. But if there's one 0:14:20.160 --> 0:14:23.520 somewhat bright spot, it maybe Apple. Those shares are higher 0:14:23.600 --> 0:14:26.120 by nearly one percent this morning. Let's get some more 0:14:26.120 --> 0:14:29.520 insights now from Gene Monster, the co founder of Loup Ventures. 0:14:29.560 --> 0:14:31.720 I spoke with Geane earlier this morning. He told me 0:14:31.760 --> 0:14:34.200 that tech investors are looking for two things right now, 0:14:34.280 --> 0:14:39.200 performance and potential. Investors in this environment want both, and 0:14:39.320 --> 0:14:42.000 what we've seen is that the companies that have offered 0:14:42.000 --> 0:14:45.320 the biggest potential you think about, Meta is the perfect 0:14:45.320 --> 0:14:48.880 example of that related to the metaverse, have been hit 0:14:48.960 --> 0:14:52.960 the hardest. Google to a lesser extent, but still this 0:14:53.120 --> 0:14:57.120 idea of investors waiting for something to emerge is usually 0:14:57.240 --> 0:15:00.760 very important for tech investors, but this names period it's 0:15:00.840 --> 0:15:03.400 less important. And I think one of the beauties of 0:15:03.600 --> 0:15:07.200 Apple is that their current performance has been solid and 0:15:07.280 --> 0:15:10.280 they still have this optionality around new markets that they 0:15:10.280 --> 0:15:13.440 can get into that can potentially have a step function 0:15:13.520 --> 0:15:15.600 up in their growth rate, which is hard to imagine 0:15:15.680 --> 0:15:18.600 given how big they are, that the law of numbers 0:15:18.680 --> 0:15:21.160 can still work in their favor. But I think that 0:15:21.160 --> 0:15:23.960 that is the is the balance that this company is working, 0:15:23.960 --> 0:15:26.200 and just to put it into perspective, Nathan, one final 0:15:26.240 --> 0:15:29.680 point is that Apple is the only big tech company 0:15:29.760 --> 0:15:32.160 to guide essentially in line with the street. They don't 0:15:32.160 --> 0:15:34.840 give formal guidance, but you can back into it and 0:15:34.880 --> 0:15:37.600 I think that that speaks to the strength of performance. 0:15:37.640 --> 0:15:40.960 And if you're curious the reason why, what was iPhone, 0:15:41.360 --> 0:15:43.320 It's just over half of their business. It was up 0:15:43.360 --> 0:15:46.080 ten percent year every year. That was in the face 0:15:46.160 --> 0:15:50.160 of a forty seven percent comp and so the number 0:15:50.160 --> 0:15:53.560 actually would have been even stronger if not for supply constraints. 0:15:53.560 --> 0:15:57.040 They're still supply constrained on the most popular pro models 0:15:57.040 --> 0:15:59.720 by three to four weeks, and typically at this point 0:15:59.720 --> 0:16:02.920 in the cycle, we're six weeks into the new iPhone cycle, 0:16:03.000 --> 0:16:05.320 you would see lead times of one to two weeks, 0:16:05.360 --> 0:16:08.640 and so I think that, um, you know, they are 0:16:08.720 --> 0:16:11.560 continuing to do well. They got the performance, and they 0:16:11.600 --> 0:16:14.640 got the potential around automotive and a R and and 0:16:14.720 --> 0:16:18.200 something in health. Talking about supply constraints, we were seeing 0:16:18.200 --> 0:16:23.000 a lot of constraints apparently coming out of Amazon's results 0:16:23.040 --> 0:16:26.480 projecting a much weaker than expected holiday quarter. And I 0:16:26.520 --> 0:16:30.600 assume that that that includes the earlier Prime Day promotions 0:16:30.600 --> 0:16:33.120 that we just saw, right, most of those promotes. Those 0:16:33.120 --> 0:16:36.960 promotions fell into the September quarter, and so it's it's 0:16:37.040 --> 0:16:40.200 less about the Prime Day impact. But I want to 0:16:40.240 --> 0:16:43.520 put some perspective, and they did guide lower than where 0:16:43.520 --> 0:16:46.240 the street was at for the December quarter. That's true. 0:16:46.240 --> 0:16:48.840 But I just I think there's this um, I think 0:16:48.840 --> 0:16:50.960 it's an overreaction. I just want to make the case 0:16:51.040 --> 0:16:53.680 that it is an overreaction. Is that the street was 0:16:53.680 --> 0:16:57.160 previously looking for twelve percent revenue growth for December. If 0:16:57.160 --> 0:16:59.280 you take the midpoint of their guns, it would have 0:16:59.320 --> 0:17:02.520 been four percent. So that is a slowing girl, There's 0:17:02.560 --> 0:17:05.720 no doubt about it. Uh. They usually hit the high 0:17:05.840 --> 0:17:08.880 end over the past twenty years almost percent of the time. 0:17:08.880 --> 0:17:10.480 They coming at the high end. That would be like 0:17:10.520 --> 0:17:13.439 six percent. So they guided down. That is true. The 0:17:13.480 --> 0:17:17.440 consumer is weak, that is true. Uh, the advertisers are weak. 0:17:18.000 --> 0:17:20.920 All of this is having a negative impact on Amazon's business. 0:17:20.960 --> 0:17:23.840 But the piece that surprises me is that I think 0:17:23.920 --> 0:17:29.280 it is uh just this reaction down is more commentary 0:17:29.320 --> 0:17:32.800 about that we're talking about earlier with Apple. Is that 0:17:33.200 --> 0:17:37.240 investors just demand performance today, and whether it's a small 0:17:37.320 --> 0:17:40.000 cap or a meg tech cap, they wanted today. And 0:17:40.080 --> 0:17:44.000 I suspect that investors will quickly move on and and 0:17:44.000 --> 0:17:46.800 and get more comfortable that Amazon's business isn't a good 0:17:46.800 --> 0:17:49.480 place longer term. Well, we've got John Gene, I've got 0:17:49.480 --> 0:17:52.280 to get your thoughts on Twitter now that Elon Musk 0:17:52.320 --> 0:17:57.840 apparently is at least an interim CEO. Is Twitter investable 0:17:58.119 --> 0:18:01.639 under an Elon Musk as the leader? Yes, anything with 0:18:01.680 --> 0:18:04.600 Ellen right now, he still has the golden touch, so 0:18:04.960 --> 0:18:07.840 it is investable. He's gonna kind of go away for 0:18:07.920 --> 0:18:10.520 two or three years and and take the rails off 0:18:10.520 --> 0:18:12.720 of it and run this like a private company that 0:18:12.720 --> 0:18:16.040 that that it will be, and we'll see what what 0:18:16.160 --> 0:18:18.520 he pops out. And I was encouraged to hear his 0:18:18.600 --> 0:18:21.000 commentary yesterday that he does not want this to become 0:18:21.600 --> 0:18:24.960 free for all because obviously he's gonna take some of 0:18:24.960 --> 0:18:29.679 the governor's off of what you can say, And I 0:18:29.680 --> 0:18:33.920 think that's that's important ultimately when you when you put 0:18:33.920 --> 0:18:36.959 this all together, Twitter still a side project for Elen. 0:18:37.080 --> 0:18:40.960 His his true passions are Tesla and SpaceX, and I 0:18:41.040 --> 0:18:43.360 think that, uh, we're thinking a lot about it now. 0:18:43.480 --> 0:18:45.680 Probably a year or two from now, we'rell be thinking 0:18:45.680 --> 0:18:48.720 a lot more about SpaceX and Tesla. Just about thirty 0:18:48.720 --> 0:18:53.400 seconds left, Gene, We've seen obviously tech shares broadly get 0:18:53.520 --> 0:18:56.600 punished this week. Would you buy back into tech at 0:18:56.640 --> 0:19:00.520 these levels? I think so. Forth if you have a perspective. 0:19:00.720 --> 0:19:04.200 I think that more than two year perspective. We own 0:19:04.359 --> 0:19:06.640 some of these, we own Meta, we own Amazon. They've 0:19:06.640 --> 0:19:09.200 had a tough week, but we're not selling them. And 0:19:09.280 --> 0:19:12.400 ultimately I think that, uh, you know, they have assets 0:19:12.440 --> 0:19:15.919 that are hard to replicate the world's population visits a 0:19:16.000 --> 0:19:19.560 Facebook property on a daily basis. Amazon has logistics that 0:19:19.640 --> 0:19:22.400 no other e commerce company can touch. And I think 0:19:22.440 --> 0:19:24.280 you probably have to assume that all that we're in 0:19:24.359 --> 0:19:28.280 economically is gonna fade or we'll go away. Eventually, we'll stabilize, 0:19:28.280 --> 0:19:31.120 and these companies are going to right size their growth 0:19:31.200 --> 0:19:33.680 rates back to what we're accustomed to. And that was 0:19:33.760 --> 0:19:36.119 g Monster, co founder of Louke Ventures. Or thanks to 0:19:36.160 --> 0:19:38.760 Gene for joining us this morning on Bloomberg Daybreak. As 0:19:38.760 --> 0:19:41.760 we continue to watch Amazon shares fall in the pre market, 0:19:41.760 --> 0:19:44.600 there now down twelve point seven percent, Apple shares are 0:19:44.680 --> 0:19:48.800 higher by almost one percent. Tesla is moving lower, down 0:19:48.840 --> 0:19:51.760 one percent, with Elon Musk taking over as CEO, not 0:19:51.880 --> 0:19:55.080 just of Tesla, but now of Twitter. SMB futures down 0:19:55.080 --> 0:19:57.760 twenty four points, Staff futures down forty six and nastack 0:19:57.840 --> 0:20:00.200 futures are lower by a hundred seventeen points. That is 0:20:00.240 --> 0:20:07.720 a drop of one per cent. This is Bloomberg. Bloomberg 0:20:07.760 --> 0:20:10.000 day Break, brought to you by Ancient Accountants and Advisors, 0:20:10.040 --> 0:20:11.960 the right fit tax and accounting firm that you need 0:20:12.000 --> 0:20:14.520 to succeed. Visit them at Ancient dot com slash v 0:20:14.600 --> 0:20:17.600 i P to learn more. That's Ancient dot Com slash 0:20:17.720 --> 0:20:25.280 v i P broadcasting live from the Bloomberg Interactive Broker 0:20:25.400 --> 0:20:28.800 Studio in New York. Bloomberg E Living Freedom to Washington, 0:20:28.880 --> 0:20:32.760 d C, Bloomberg one to Boston, Bloomberg one O six 0:20:32.800 --> 0:20:36.000 one to San Francisco, Bloomberg N sixty to the Country, 0:20:36.080 --> 0:20:39.120 Sirius XM to the one nine and around the globe 0:20:39.200 --> 0:20:43.199 the Bloomberg Business and Bloomberg Radio dot com. This is 0:20:43.200 --> 0:20:51.920 Bloomberg Daybreak. It's six thirty on Wall Street. Good morning. 0:20:51.960 --> 0:20:54.760 I'm Nathan Hagar and I'm Karen Moscow, and we're just 0:20:54.800 --> 0:20:57.600 about three hours away from the open of US trading 0:20:57.640 --> 0:20:59.360 time for the five things so you need to notice 0:20:59.400 --> 0:21:01.359 start your day. Brought to you by I B k 0:21:01.640 --> 0:21:05.520 R Investment Advisors switched to Interactive Brokers for lowest cost 0:21:05.560 --> 0:21:09.320 global trading and turnkey custody solutions. No ticket charges and 0:21:09.400 --> 0:21:12.480 no conflicts of your interests at ibkr dot com slash 0:21:12.920 --> 0:21:17.760 r I a up first. US futures are falling this morning. 0:21:18.480 --> 0:21:20.280 That's let lower by tech as we wrap up a 0:21:20.359 --> 0:21:23.600 volatile week, and Amazon is leading to declines. Those shares 0:21:23.680 --> 0:21:27.600 are down about twelve points seven percent in early trading, 0:21:27.640 --> 0:21:31.280 Amazon predicting the slowest holiday quarter growth in the company's history. 0:21:31.560 --> 0:21:35.280 Bloomberg Intelligence senior analyst Punum Goyle has more in the results. 0:21:35.520 --> 0:21:38.120 Sales were weak across the board, guidance of the week, 0:21:38.320 --> 0:21:41.760 margins are week I mean overall, you know, the bright 0:21:41.840 --> 0:21:44.320 star here that used to be a WS is also 0:21:44.359 --> 0:21:47.160 weaker both on sales and margin. So I think there's 0:21:47.200 --> 0:21:49.879 a lot to digest, but it's kind of humming the 0:21:49.960 --> 0:21:53.200 same tunes as other results that we've seen earlier, where 0:21:53.200 --> 0:21:56.960 the consumer is slowing, spending is slowing, and hence the 0:21:57.040 --> 0:21:59.920 results are much weaker than expected. And Bloomberg and Tell 0:22:00.000 --> 0:22:03.040 Gince analyst put Him Goyle says Amazon's market values set 0:22:03.040 --> 0:22:06.840