Speaker 1: Good morning. I'm Brian Curtiz and I'm Doug Krisner. Here
Speaker 1: are the stories we're following today.
Speaker 2: Well, Amazon's saying that revenue in the current quarter will
Speaker 2: be one hundred and thirty eight to one hundred and
Speaker 2: forty three billion dollars. That beat analyst projections of just
Speaker 2: over one hundred and thirty eight billion. Amazon is optimistic
Speaker 2: based on strong performance from its main e commerce business,
Speaker 2: and this comes as the company has been investing heavily
Speaker 2: in its logistics operations. We're here from Bloomberg's Punamgoyle.
Speaker 3: They continue to invest in that fast and free shipping
Speaker 3: and really speeding up those timelines. So I think the
Speaker 3: margin story, more than on the retail side, is just able.
Speaker 3: Also turning to growth and really driving up that profitability
Speaker 3: to allow for other areas of investment is key here.
Speaker 2: Yeah, that AWS revenue growth was twelve percent, and that
Speaker 2: was higher than the expectation of ten percent got a
Speaker 2: lot of attention. Amazon saying that the pace of growth
Speaker 2: in its profitable cloud business did slow though over all
Speaker 2: for a sixth straight quarter. However, Amazon has been ruling
Speaker 2: out various products based on generative artificial intelligence, and the
Speaker 2: company thinks the cloud business will ultimately benefit from this.
Speaker 2: We've seen some pretty strong gains in after hours. At
Speaker 2: the moment, Amazon is up nine point eight percent in
Speaker 2: late trading.
Speaker 1: We go to Apple next. After the bel the company
Speaker 1: reported sluggish iPhone sales for the third quarter. We're talking
Speaker 1: about slippage in the vicinity of two point four percent.
Speaker 1: Total revenue number here of thirty nine point seven billion.
Speaker 1: I guess you could say that these results show the
Speaker 1: iPhone may be suffering from a broader slump in the
Speaker 1: smartphone market. But Bloomberg's anarag Rana tells us sales in
Speaker 1: China will be important going forward.
Speaker 4: It's about twenty percent of overall sales for Apple, and
Speaker 4: you know, our analysts in Asia think that China is
Speaker 4: going to be very strong this year because, as I said,
Speaker 4: last year, because of COVID, they did not sell that
Speaker 4: many phones there. And the rumor is that the Apple
Speaker 4: lifehone fifteen, the Pro Max model with will have an
Speaker 4: unbelievable camera and that really does help unit shipments in
Speaker 4: China more than any other region.
Speaker 1: That is Bloomberg's anaag Rana. Now we also should point
Speaker 1: out that Apple reported gains and services that seemed to
Speaker 1: be a bright spot in an otherwise lackluster quarter, and
Speaker 1: it helped Apple deliver overall revenue of eighty one point
Speaker 1: eight billion, just above analyst projections. Brian, Right now, I'm
Speaker 1: looking at Apple shares down nearly two and a half
Speaker 1: percent in the late US session.
Speaker 2: Yeah. Well, tomorrow we'll be getting the US employment data
Speaker 2: for the month of July. That comes at eight thirty
Speaker 2: in the morning Wall Street Time. Let's get a preview
Speaker 2: here from Bloomberg's Michael McKee. Will July be the month
Speaker 2: the labor market finally slows? Fed officials have forecasts less hiring,
Speaker 2: more unemployment, and smaller wage gains for some time, but
Speaker 2: the monthly data have generally gone the other way. Economists
Speaker 2: see only a slight drop in hiring for last month
Speaker 2: and no change in the unemployment rate. Average hourly earnings gains,
Speaker 2: though slowing, are still forecast to be rising at at
Speaker 2: unsustainable pace, and inline forecast is likely to keep upward
Speaker 2: pressure and interest rates. Weaker than expected numbers might bring
Speaker 2: some relief, although the FED doesn't meet again until late September.
Speaker 2: Michael McKee, Bloomberg Daybreak Asia.
Speaker 1: Well, speaking of central banks, the Bank of England raised
Speaker 1: its benchmark lending rate a quarter point today twenty five
Speaker 1: basis points, so we have a new fifteen year high
Speaker 1: at five and a quarter percent, and the BOE also
Speaker 1: left the door open for further action if inflation persists.
Speaker 1: Here's BOE Governor Andrew Bailey.
Speaker 5: It's the last mile, which obviously where policy is.
Speaker 4: Really doing the work. It's going to have to remain
Speaker 4: restrict to have this effect of bringing inflation down, and
Speaker 4: particularly next year.
Speaker 1: That is Andrew Bailey, the Governor of the Bank of England.
Speaker 1: He went on to say it's far too soon to
Speaker 1: speculate about lower interest rates. UK policymakers have a labor
Speaker 1: market and inflation report, both actually will be coming before
Speaker 1: the next rate decision, and the BOE will next meet
Speaker 1: on September twenty first. Brian Well to this part of
Speaker 1: the world.
Speaker 2: China is asking the public to inform on obstacles to
Speaker 2: business in the private sector. We get the story from
Speaker 2: Bloomberg's Joan Wong.
Speaker 6: Here in Hong Kong, the government wants step offs on
Speaker 6: everything from barriers to market entry, to unfair competition, local protectionism,
Speaker 6: and arbitrary fines. Beijing will ask local officials to intervene
Speaker 6: or send in supervision teams for more serious cases. This
Speaker 6: is seen as China's latest show of concern for the
Speaker 6: inbattled private sector. The appeal comes as President Chijingping tries
Speaker 6: to promote a more welcoming environment for the private sector.
Speaker 6: The People's Bank of China also said it would ensure
Speaker 6: the sector received the extra resources and needed to grow.
Speaker 4: In Hong Kong.
Speaker 6: Join Wang Bloomberg Day, Brigasia Doug.
Speaker 2: I wanted to add to some of your comments about
Speaker 2: looking at yields moving up like this, and I think
Speaker 2: a lot of people asking the question why you mentioned
Speaker 2: hot jobs. Others are talking about the Treasury issuance, the
Speaker 2: Fitch warning, and also the Bank of Japan guiding yields.
Speaker 2: But what isn't mentioned as much is that the consensus
Speaker 2: now is moving away from recession and investors need less
Speaker 2: of a hedge against their equity portfolio. We heard that
Speaker 2: from Jim Karen on surveillance late last night my time.
Speaker 2: He's one of the bond gurus over at Morgan Stanley,
Speaker 2: and the big Acman point is that inflation will stay
Speaker 2: higher for longer, and you know, if you put all
Speaker 2: those things together, that must be six reasons there for
Speaker 2: yields popping. We're at a yearly high for the tenure yield,
Speaker 2: not quite over the four and a quarter we saw
Speaker 2: last year in November, but prior to that, you have
Speaker 2: to go all the way back to two thousand and
Speaker 2: seven to get to these levels.
Speaker 1: I think that's a very good point. Brian, Yeah, four
Speaker 1: seventeen on the ten year and as long as we're
Speaker 1: talking interest rates, and made this point earlier on the
Speaker 1: other program that we kind of lead into or that
Speaker 1: leads into us our show that China Central Bank may
Speaker 1: cut the reserve requirement ratio for major banks as soon
Speaker 1: as this month. This is really coming from a number
Speaker 1: of analysts, but I'll cite CIDIC Securities pointing out that
Speaker 1: there is a pretty much a large liquidity gap in
Speaker 1: the month of August and because of that, and you're
Speaker 1: dealing with this environment where there's going to be a
Speaker 1: number of maturing loans coming through well, not only this month,
Speaker 1: but the remainder of the year. Maybe it's incumbent upon
Speaker 1: authorities to consider a possibility of a triple R cut
Speaker 1: that can't be ruled out as a way of making
Speaker 1: sure that banks have enough money to lend.
Speaker 2: Yeah, but we're in the point now, we're at the
Speaker 2: point where investors are really kind of in a show
Speaker 2: me story, So that would be one thing. They need
Speaker 2: a lot of things, and they need to see some
Speaker 2: performance and some change. We got a little bit of
Speaker 2: change from the taishin services data yesterday came in pretty solid,
Speaker 2: and that helped restore a little bit of optimism which
Speaker 2: obviously had been fading a quick point. Amazon investors pretty
Speaker 2: impressed there with that. I think the cloud revenue ticking
Speaker 2: up a little sort of stops that decline after quarter.
Speaker 2: But the Apple story not impressed, particularly with China. I
Speaker 2: think we sort of knew that given what Qualcom delivered yesterday.
Speaker 2: All right, now it's time for Global News. Donald Trump
Speaker 2: has pleaded not guilty to charges that he conspired to
Speaker 2: obstruct the twenty twenty two, or rather the twenty twenty
Speaker 2: presidential election. Head backs to with Global News in San Francisco.
Speaker 7: Ed, yeah, as well, Brian as conspiring to interfere with
Speaker 7: the voting rights of millions of Americans. Now, as plea
Speaker 7: came in his arraignment in which he was advised of
Speaker 7: the counts against him, This is just the latest now,
Speaker 7: but maybe the most serious of the cases lined up
Speaker 7: against him. Three active, one expected in Georgia, not a
Speaker 7: federal case in which voting interference charges are expected to
Speaker 7: drop as well. Bloomberg Kaylee Lyons has been outside the
Speaker 7: courtroom today.
Speaker 8: It should be four cases that the former president is fighting.
Speaker 8: The New York trial set for marshap next year. The
Speaker 8: Florida trial in May of twenty twenty four will have
Speaker 8: to wait for the trials on this one. But Jack Smith,
Speaker 8: a special counsel who's office brought the chargers, said they
Speaker 8: would like it to be speedy.
Speaker 7: Now the judge has set the hearing for the June
Speaker 7: twenty eighth, where Judge Tanya Chutkin intends to set a
Speaker 7: drial date. Judge Shutkin and an Obama nominee who has
Speaker 7: ruled against Trump motions in the past. Now, Trump did
Speaker 7: comment to the media pool as he left of the
Speaker 7: Reagan Airport with the same drumbey.
Speaker 8: This is a persecution of a political opponent.
Speaker 4: This was never supposed to happen in America.
Speaker 7: Yeah, the judge has set the next hearing for the
Speaker 7: twenty eighth. The Republican candidate will heard Bloomberg sound On
Speaker 7: says Trump is no longer running for America.
Speaker 9: He's a bully, he's a liar, and he's only running
Speaker 9: in order to stay out of prison. And what's even
Speaker 9: crazier is that he is using, you know, hard working Americans'
Speaker 9: dollars to fund his illegal bills. Right, He's allegedly a billionaire,
Speaker 9: but he can't pay his own legal bills.
Speaker 7: And to Herd's point, the pro Trump pack reported in
Speaker 7: the week that it had spent most all of its
Speaker 7: campaign fundraising money in legal defense. Two US Navy sailors
Speaker 7: have been arrested on charges of providing sensitive US military
Speaker 7: information to China. The Justice Department calls it a relentless
Speaker 7: effort by China to gain US secrets. It says China
Speaker 7: paid for the information. The US Attorney for the Southern
Speaker 7: District of California, Randy Grossman, says these are very serious charges.
Speaker 5: Statutes reserved for the most serious circumstances involving the passage
Speaker 5: of national defense information intended to harm the United States
Speaker 5: or for the benefit of a foreign power. The fact
Speaker 5: that we've charged it in this case in San Diego
Speaker 5: is a reflection of the seriousness of ways alleged conduct.
Speaker 7: Now both men are Chinese born naturalized US citizens. One,
Speaker 7: it is alleged, was paid thousand dollars for information on
Speaker 7: vulnerabilities of ships, of photos of military hardware, and scores
Speaker 7: of technical manuals. DOJ says this places lives of military
Speaker 7: personnel at risk and weekends US Security Global News powered
Speaker 7: by more than twenty seven hundred journalists and and list
Speaker 7: in over one hundred and twenty countries. In San Francisco,
Speaker 7: I'm Ed Baxter, and this is Bloomberg.
Speaker 2: This is Bloomberg Daybreak Asia. I'm Brian Curtis, along with
Speaker 2: Doug Krisner. Ushad Salamat is on TV assignment this hour.
Speaker 2: Our guinst is Carol Pepper, founder and CEO at Pepper International.
Speaker 2: I would note that Amazon is now up more than
Speaker 2: ten percent in late trading after its earnings, and Carol,
Speaker 2: you say a tech boom is coming. I would counter
Speaker 2: that just a little bit, with yields drifting higher like
Speaker 2: this is definitely cutting in to a certain extent on
Speaker 2: some of the gains in big tech. Microsoft, for instance,
Speaker 2: even after an impressive earnings report, is down since that period.
Speaker 2: Your thoughts on where tech goes from here.
Speaker 10: Yes, well, I think tech has a nice long run
Speaker 10: ahead of it because we've got some very large sacular
Speaker 10: trends that are going to continue to play out. So
Speaker 10: every industry is going to be affected by artificial intelligence
Speaker 10: that it's going to have to do some sort of
Speaker 10: an upgrade. We've also seen that companies corporations have stopped,
Speaker 10: you know, sort of just doing stock buybacks and are
Speaker 10: reinvesting in technology and capital for the companies understanding that
Speaker 10: they need to get ready for this next evolution because
Speaker 10: robots and technology, frankly are going.
Speaker 2: To the gains. I think the question is all the
Speaker 2: gains already in No, not at all.
Speaker 10: We're just at the beginning. This is just starting. We've
Speaker 10: got a ten year run here. You recall I manage
Speaker 10: money for people that have family offices over one hundred
Speaker 10: million dollars. So we're always thinking about what are the
Speaker 10: long term trends that we need to be part of.
Speaker 10: And so this new push on AI, with the fact
Speaker 10: that it's finally getting released and integrated into all kinds
Speaker 10: of businesses, means we're just at the start of a
Speaker 10: new secular trend in technology. The same with cybersecurity. We've
Speaker 10: talked about that. You know that cybersecurity, which is also
Speaker 10: an aspect of technology, will continue to have to be
Speaker 10: a strong area of investment globally for all these corporations.
Speaker 10: So I like to find long term trends that are
Speaker 10: going to last for a long time. And it doesn't
Speaker 10: matter if fields or up or down this month or
Speaker 10: for six months. We're talking about how do you make
Speaker 10: money over ten years. I mean, you look at Microsoft.
Speaker 10: My goodness, if you had invested in that company, you know,
Speaker 10: twenty years ago, you would have been up to almost
Speaker 10: twenty nineteen hundred percent. So you have to look about
Speaker 10: look at that nineteen hundred percent over twenty years.
Speaker 1: Brian and I were talking earlier, Caroll.
Speaker 10: On your time horizon. Your time horizon is key.
Speaker 1: We were talking a moment ago about how the bond
Speaker 1: market seems to be repricing under our scenario for a
Speaker 1: soft landing. I mean that kind of supports a little
Speaker 1: bit the growth story that you seem to be laying out.
Speaker 1: But you don't. You're not bothered by the notion that
Speaker 1: we could get a you know, four to twenty five,
Speaker 1: let's say, on the ten uere but for how.
Speaker 10: Long this is the question. If the soft landing happens right,
Speaker 10: then sentiment shift. Remember also, August is always a funky month.
Speaker 10: Half the traders are on vacation, there's not a lot
Speaker 10: of volume in the market, and small pieces of news
Speaker 10: move things around quickly, and so I think you get
Speaker 10: a better indication of where yields are going to end
Speaker 10: up in another month and a half after September fifteenth.
Speaker 10: You know, you don't really want to go crazy about
Speaker 10: what the market is indicating in August. It's never accurate.
Speaker 2: Carol, I think many would agree with you about the
Speaker 2: future prospects for these companies. There's not really too much
Speaker 2: doubt about that. But the question, and the reason I
Speaker 2: butted in before was the example of Microsoft, is that
Speaker 2: the stock gained so much that investors are sort of
Speaker 2: backing away as they are starting to sort of back
Speaker 2: away a little bit from Apple. So it definitely is
Speaker 2: show me new with new business, with new gains, and
Speaker 2: that's the part that maybe just takes some time. I'm
Speaker 2: not sure that these companies are monetizing AI at the moment,
Speaker 2: so we have to be concerned about the big gains
Speaker 2: in the stock prize.
Speaker 10: Well, look at Amazon, for example. The problem with these companies.
Speaker 10: A lot of these big companies in technology, they'll have
Speaker 10: a huge run up and then they'll go flat for
Speaker 10: a year or two, and then they might go down
Speaker 10: a bit, and then suddenly they'll have another run. So
Speaker 10: Amazon from last year to now is up almost fifty percent.
Speaker 10: If you had been out of Amazon and not sure
Speaker 10: when the run was going to happen, you would have
Speaker 10: missed that fifty percent gain. People may say, well, fifty percent,
Speaker 10: that's it. It's not going any higher, but again over
Speaker 10: what period of time, And it's very hard to time
Speaker 10: the market.
Speaker 2: This is Bloomberg Daybreak Asia, your morning brief on this
Speaker 2: story's making news from Hong Kong to Singapore and Wall Street.
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