WEBVTT - Big Tech Earnings, US Jobs Preview

0:00:02.400 --> 0:00:05.640
<v Speaker 1>Good morning. I'm Brian Curtiz and I'm Doug Krisner. Here

0:00:05.680 --> 0:00:07.320
<v Speaker 1>are the stories we're following today.

0:00:09.280 --> 0:00:12.440
<v Speaker 2>Well, Amazon's saying that revenue in the current quarter will

0:00:12.440 --> 0:00:14.280
<v Speaker 2>be one hundred and thirty eight to one hundred and

0:00:14.280 --> 0:00:17.880
<v Speaker 2>forty three billion dollars. That beat analyst projections of just

0:00:18.000 --> 0:00:21.440
<v Speaker 2>over one hundred and thirty eight billion. Amazon is optimistic

0:00:21.480 --> 0:00:24.680
<v Speaker 2>based on strong performance from its main e commerce business,

0:00:25.079 --> 0:00:27.440
<v Speaker 2>and this comes as the company has been investing heavily

0:00:27.520 --> 0:00:31.240
<v Speaker 2>in its logistics operations. We're here from Bloomberg's Punamgoyle.

0:00:31.600 --> 0:00:34.320
<v Speaker 3>They continue to invest in that fast and free shipping

0:00:34.600 --> 0:00:36.919
<v Speaker 3>and really speeding up those timelines. So I think the

0:00:36.960 --> 0:00:40.000
<v Speaker 3>margin story, more than on the retail side, is just able.

0:00:40.080 --> 0:00:43.080
<v Speaker 3>Also turning to growth and really driving up that profitability

0:00:43.120 --> 0:00:46.879
<v Speaker 3>to allow for other areas of investment is key here.

0:00:47.640 --> 0:00:51.400
<v Speaker 2>Yeah, that AWS revenue growth was twelve percent, and that

0:00:51.520 --> 0:00:53.920
<v Speaker 2>was higher than the expectation of ten percent got a

0:00:53.960 --> 0:00:57.000
<v Speaker 2>lot of attention. Amazon saying that the pace of growth

0:00:57.000 --> 0:01:00.320
<v Speaker 2>in its profitable cloud business did slow though over all

0:01:00.440 --> 0:01:03.840
<v Speaker 2>for a sixth straight quarter. However, Amazon has been ruling

0:01:03.840 --> 0:01:07.679
<v Speaker 2>out various products based on generative artificial intelligence, and the

0:01:07.720 --> 0:01:11.280
<v Speaker 2>company thinks the cloud business will ultimately benefit from this.

0:01:11.400 --> 0:01:14.120
<v Speaker 2>We've seen some pretty strong gains in after hours. At

0:01:14.120 --> 0:01:17.200
<v Speaker 2>the moment, Amazon is up nine point eight percent in

0:01:17.280 --> 0:01:17.839
<v Speaker 2>late trading.

0:01:18.040 --> 0:01:20.319
<v Speaker 1>We go to Apple next. After the bel the company

0:01:20.360 --> 0:01:23.639
<v Speaker 1>reported sluggish iPhone sales for the third quarter. We're talking

0:01:23.680 --> 0:01:26.760
<v Speaker 1>about slippage in the vicinity of two point four percent.

0:01:27.120 --> 0:01:30.200
<v Speaker 1>Total revenue number here of thirty nine point seven billion.

0:01:30.560 --> 0:01:32.920
<v Speaker 1>I guess you could say that these results show the

0:01:32.959 --> 0:01:35.480
<v Speaker 1>iPhone may be suffering from a broader slump in the

0:01:35.480 --> 0:01:39.920
<v Speaker 1>smartphone market. But Bloomberg's anarag Rana tells us sales in

0:01:40.000 --> 0:01:42.040
<v Speaker 1>China will be important going forward.

0:01:42.240 --> 0:01:45.360
<v Speaker 4>It's about twenty percent of overall sales for Apple, and

0:01:45.560 --> 0:01:48.800
<v Speaker 4>you know, our analysts in Asia think that China is

0:01:48.800 --> 0:01:51.320
<v Speaker 4>going to be very strong this year because, as I said,

0:01:51.400 --> 0:01:54.240
<v Speaker 4>last year, because of COVID, they did not sell that

0:01:54.320 --> 0:01:57.080
<v Speaker 4>many phones there. And the rumor is that the Apple

0:01:57.120 --> 0:02:00.760
<v Speaker 4>lifehone fifteen, the Pro Max model with will have an

0:02:00.840 --> 0:02:04.640
<v Speaker 4>unbelievable camera and that really does help unit shipments in

0:02:04.720 --> 0:02:06.160
<v Speaker 4>China more than any other region.

0:02:06.200 --> 0:02:09.320
<v Speaker 1>That is Bloomberg's anaag Rana. Now we also should point

0:02:09.360 --> 0:02:12.320
<v Speaker 1>out that Apple reported gains and services that seemed to

0:02:12.360 --> 0:02:15.320
<v Speaker 1>be a bright spot in an otherwise lackluster quarter, and

0:02:15.400 --> 0:02:19.080
<v Speaker 1>it helped Apple deliver overall revenue of eighty one point

0:02:19.080 --> 0:02:23.320
<v Speaker 1>eight billion, just above analyst projections. Brian, Right now, I'm

0:02:23.360 --> 0:02:25.399
<v Speaker 1>looking at Apple shares down nearly two and a half

0:02:25.400 --> 0:02:26.800
<v Speaker 1>percent in the late US session.

0:02:27.400 --> 0:02:31.000
<v Speaker 2>Yeah. Well, tomorrow we'll be getting the US employment data

0:02:31.040 --> 0:02:33.440
<v Speaker 2>for the month of July. That comes at eight thirty

0:02:33.480 --> 0:02:35.800
<v Speaker 2>in the morning Wall Street Time. Let's get a preview

0:02:35.840 --> 0:02:38.960
<v Speaker 2>here from Bloomberg's Michael McKee. Will July be the month

0:02:38.960 --> 0:02:43.000
<v Speaker 2>the labor market finally slows? Fed officials have forecasts less hiring,

0:02:43.160 --> 0:02:46.280
<v Speaker 2>more unemployment, and smaller wage gains for some time, but

0:02:46.320 --> 0:02:49.320
<v Speaker 2>the monthly data have generally gone the other way. Economists

0:02:49.320 --> 0:02:52.040
<v Speaker 2>see only a slight drop in hiring for last month

0:02:52.120 --> 0:02:55.880
<v Speaker 2>and no change in the unemployment rate. Average hourly earnings gains,

0:02:55.919 --> 0:02:58.520
<v Speaker 2>though slowing, are still forecast to be rising at at

0:02:58.600 --> 0:03:02.880
<v Speaker 2>unsustainable pace, and inline forecast is likely to keep upward

0:03:02.880 --> 0:03:06.320
<v Speaker 2>pressure and interest rates. Weaker than expected numbers might bring

0:03:06.400 --> 0:03:10.040
<v Speaker 2>some relief, although the FED doesn't meet again until late September.

0:03:10.120 --> 0:03:11.919
<v Speaker 2>Michael McKee, Bloomberg Daybreak Asia.

0:03:12.040 --> 0:03:14.919
<v Speaker 1>Well, speaking of central banks, the Bank of England raised

0:03:14.960 --> 0:03:17.800
<v Speaker 1>its benchmark lending rate a quarter point today twenty five

0:03:17.840 --> 0:03:20.440
<v Speaker 1>basis points, so we have a new fifteen year high

0:03:20.480 --> 0:03:24.079
<v Speaker 1>at five and a quarter percent, and the BOE also

0:03:24.240 --> 0:03:28.120
<v Speaker 1>left the door open for further action if inflation persists.

0:03:28.440 --> 0:03:30.840
<v Speaker 1>Here's BOE Governor Andrew Bailey.

0:03:30.840 --> 0:03:32.920
<v Speaker 5>It's the last mile, which obviously where policy is.

0:03:32.960 --> 0:03:35.520
<v Speaker 4>Really doing the work. It's going to have to remain

0:03:35.880 --> 0:03:38.840
<v Speaker 4>restrict to have this effect of bringing inflation down, and

0:03:38.840 --> 0:03:39.839
<v Speaker 4>particularly next year.

0:03:40.160 --> 0:03:42.560
<v Speaker 1>That is Andrew Bailey, the Governor of the Bank of England.

0:03:42.600 --> 0:03:44.560
<v Speaker 1>He went on to say it's far too soon to

0:03:44.600 --> 0:03:49.760
<v Speaker 1>speculate about lower interest rates. UK policymakers have a labor

0:03:49.800 --> 0:03:54.520
<v Speaker 1>market and inflation report, both actually will be coming before

0:03:54.560 --> 0:03:58.040
<v Speaker 1>the next rate decision, and the BOE will next meet

0:03:58.160 --> 0:04:01.400
<v Speaker 1>on September twenty first. Brian Well to this part of

0:04:01.440 --> 0:04:01.760
<v Speaker 1>the world.

0:04:01.880 --> 0:04:05.200
<v Speaker 2>China is asking the public to inform on obstacles to

0:04:05.280 --> 0:04:07.960
<v Speaker 2>business in the private sector. We get the story from

0:04:08.000 --> 0:04:09.200
<v Speaker 2>Bloomberg's Joan Wong.

0:04:09.400 --> 0:04:11.960
<v Speaker 6>Here in Hong Kong, the government wants step offs on

0:04:12.040 --> 0:04:16.839
<v Speaker 6>everything from barriers to market entry, to unfair competition, local protectionism,

0:04:16.960 --> 0:04:20.479
<v Speaker 6>and arbitrary fines. Beijing will ask local officials to intervene

0:04:20.720 --> 0:04:24.160
<v Speaker 6>or send in supervision teams for more serious cases. This

0:04:24.279 --> 0:04:26.520
<v Speaker 6>is seen as China's latest show of concern for the

0:04:26.560 --> 0:04:30.679
<v Speaker 6>inbattled private sector. The appeal comes as President Chijingping tries

0:04:30.720 --> 0:04:33.839
<v Speaker 6>to promote a more welcoming environment for the private sector.

0:04:34.080 --> 0:04:36.320
<v Speaker 6>The People's Bank of China also said it would ensure

0:04:36.360 --> 0:04:39.599
<v Speaker 6>the sector received the extra resources and needed to grow.

0:04:39.800 --> 0:04:40.280
<v Speaker 4>In Hong Kong.

0:04:40.480 --> 0:04:43.000
<v Speaker 6>Join Wang Bloomberg Day, Brigasia Doug.

0:04:43.040 --> 0:04:45.440
<v Speaker 2>I wanted to add to some of your comments about

0:04:45.720 --> 0:04:48.320
<v Speaker 2>looking at yields moving up like this, and I think

0:04:48.320 --> 0:04:51.480
<v Speaker 2>a lot of people asking the question why you mentioned

0:04:51.600 --> 0:04:56.360
<v Speaker 2>hot jobs. Others are talking about the Treasury issuance, the

0:04:56.360 --> 0:04:59.880
<v Speaker 2>Fitch warning, and also the Bank of Japan guiding yields.

0:05:00.480 --> 0:05:03.720
<v Speaker 2>But what isn't mentioned as much is that the consensus

0:05:03.720 --> 0:05:08.559
<v Speaker 2>now is moving away from recession and investors need less

0:05:08.560 --> 0:05:11.760
<v Speaker 2>of a hedge against their equity portfolio. We heard that

0:05:11.800 --> 0:05:15.479
<v Speaker 2>from Jim Karen on surveillance late last night my time.

0:05:16.040 --> 0:05:18.400
<v Speaker 2>He's one of the bond gurus over at Morgan Stanley,

0:05:19.040 --> 0:05:22.240
<v Speaker 2>and the big Acman point is that inflation will stay

0:05:22.279 --> 0:05:24.960
<v Speaker 2>higher for longer, and you know, if you put all

0:05:25.000 --> 0:05:27.560
<v Speaker 2>those things together, that must be six reasons there for

0:05:27.720 --> 0:05:31.000
<v Speaker 2>yields popping. We're at a yearly high for the tenure yield,

0:05:31.600 --> 0:05:34.960
<v Speaker 2>not quite over the four and a quarter we saw

0:05:35.040 --> 0:05:37.360
<v Speaker 2>last year in November, but prior to that, you have

0:05:37.440 --> 0:05:39.000
<v Speaker 2>to go all the way back to two thousand and

0:05:39.000 --> 0:05:40.200
<v Speaker 2>seven to get to these levels.

0:05:40.279 --> 0:05:42.240
<v Speaker 1>I think that's a very good point. Brian, Yeah, four

0:05:42.360 --> 0:05:45.120
<v Speaker 1>seventeen on the ten year and as long as we're

0:05:45.120 --> 0:05:48.360
<v Speaker 1>talking interest rates, and made this point earlier on the

0:05:48.400 --> 0:05:51.359
<v Speaker 1>other program that we kind of lead into or that

0:05:51.520 --> 0:05:55.280
<v Speaker 1>leads into us our show that China Central Bank may

0:05:55.400 --> 0:05:58.680
<v Speaker 1>cut the reserve requirement ratio for major banks as soon

0:05:58.720 --> 0:06:02.120
<v Speaker 1>as this month. This is really coming from a number

0:06:02.160 --> 0:06:05.120
<v Speaker 1>of analysts, but I'll cite CIDIC Securities pointing out that

0:06:05.120 --> 0:06:07.760
<v Speaker 1>there is a pretty much a large liquidity gap in

0:06:07.839 --> 0:06:11.960
<v Speaker 1>the month of August and because of that, and you're

0:06:12.000 --> 0:06:14.719
<v Speaker 1>dealing with this environment where there's going to be a

0:06:14.800 --> 0:06:18.360
<v Speaker 1>number of maturing loans coming through well, not only this month,

0:06:18.400 --> 0:06:20.880
<v Speaker 1>but the remainder of the year. Maybe it's incumbent upon

0:06:20.920 --> 0:06:23.640
<v Speaker 1>authorities to consider a possibility of a triple R cut

0:06:23.680 --> 0:06:26.320
<v Speaker 1>that can't be ruled out as a way of making

0:06:26.320 --> 0:06:28.760
<v Speaker 1>sure that banks have enough money to lend.

0:06:29.360 --> 0:06:32.080
<v Speaker 2>Yeah, but we're in the point now, we're at the

0:06:32.120 --> 0:06:34.600
<v Speaker 2>point where investors are really kind of in a show

0:06:34.600 --> 0:06:36.560
<v Speaker 2>me story, So that would be one thing. They need

0:06:36.600 --> 0:06:38.599
<v Speaker 2>a lot of things, and they need to see some

0:06:38.760 --> 0:06:40.760
<v Speaker 2>performance and some change. We got a little bit of

0:06:40.839 --> 0:06:45.680
<v Speaker 2>change from the taishin services data yesterday came in pretty solid,

0:06:45.760 --> 0:06:48.720
<v Speaker 2>and that helped restore a little bit of optimism which

0:06:48.800 --> 0:06:53.520
<v Speaker 2>obviously had been fading a quick point. Amazon investors pretty

0:06:53.520 --> 0:06:56.440
<v Speaker 2>impressed there with that. I think the cloud revenue ticking

0:06:56.560 --> 0:07:00.839
<v Speaker 2>up a little sort of stops that decline after quarter.

0:07:01.560 --> 0:07:05.480
<v Speaker 2>But the Apple story not impressed, particularly with China. I

0:07:05.480 --> 0:07:08.960
<v Speaker 2>think we sort of knew that given what Qualcom delivered yesterday.

0:07:09.680 --> 0:07:13.680
<v Speaker 2>All right, now it's time for Global News. Donald Trump

0:07:13.760 --> 0:07:16.760
<v Speaker 2>has pleaded not guilty to charges that he conspired to

0:07:16.880 --> 0:07:20.120
<v Speaker 2>obstruct the twenty twenty two, or rather the twenty twenty

0:07:20.240 --> 0:07:24.000
<v Speaker 2>presidential election. Head backs to with Global News in San Francisco.

0:07:24.120 --> 0:07:27.520
<v Speaker 7>Ed, yeah, as well, Brian as conspiring to interfere with

0:07:27.560 --> 0:07:30.040
<v Speaker 7>the voting rights of millions of Americans. Now, as plea

0:07:30.160 --> 0:07:32.440
<v Speaker 7>came in his arraignment in which he was advised of

0:07:32.480 --> 0:07:35.840
<v Speaker 7>the counts against him, This is just the latest now,

0:07:35.880 --> 0:07:38.240
<v Speaker 7>but maybe the most serious of the cases lined up

0:07:38.240 --> 0:07:41.840
<v Speaker 7>against him. Three active, one expected in Georgia, not a

0:07:41.880 --> 0:07:45.360
<v Speaker 7>federal case in which voting interference charges are expected to

0:07:45.480 --> 0:07:48.800
<v Speaker 7>drop as well. Bloomberg Kaylee Lyons has been outside the

0:07:48.840 --> 0:07:49.640
<v Speaker 7>courtroom today.

0:07:49.720 --> 0:07:52.760
<v Speaker 8>It should be four cases that the former president is fighting.

0:07:52.840 --> 0:07:55.840
<v Speaker 8>The New York trial set for marshap next year. The

0:07:55.920 --> 0:07:58.560
<v Speaker 8>Florida trial in May of twenty twenty four will have

0:07:58.600 --> 0:08:00.960
<v Speaker 8>to wait for the trials on this one. But Jack Smith,

0:08:01.000 --> 0:08:03.600
<v Speaker 8>a special counsel who's office brought the chargers, said they

0:08:03.600 --> 0:08:04.960
<v Speaker 8>would like it to be speedy.

0:08:05.200 --> 0:08:07.320
<v Speaker 7>Now the judge has set the hearing for the June

0:08:07.320 --> 0:08:10.120
<v Speaker 7>twenty eighth, where Judge Tanya Chutkin intends to set a

0:08:10.200 --> 0:08:13.520
<v Speaker 7>drial date. Judge Shutkin and an Obama nominee who has

0:08:13.600 --> 0:08:16.640
<v Speaker 7>ruled against Trump motions in the past. Now, Trump did

0:08:16.680 --> 0:08:18.600
<v Speaker 7>comment to the media pool as he left of the

0:08:18.600 --> 0:08:21.000
<v Speaker 7>Reagan Airport with the same drumbey.

0:08:21.280 --> 0:08:24.360
<v Speaker 8>This is a persecution of a political opponent.

0:08:24.800 --> 0:08:27.200
<v Speaker 4>This was never supposed to happen in America.

0:08:27.760 --> 0:08:30.240
<v Speaker 7>Yeah, the judge has set the next hearing for the

0:08:30.320 --> 0:08:34.120
<v Speaker 7>twenty eighth. The Republican candidate will heard Bloomberg sound On

0:08:34.280 --> 0:08:38.000
<v Speaker 7>says Trump is no longer running for America.

0:08:38.080 --> 0:08:41.680
<v Speaker 9>He's a bully, he's a liar, and he's only running

0:08:42.280 --> 0:08:44.080
<v Speaker 9>in order to stay out of prison. And what's even

0:08:44.280 --> 0:08:49.920
<v Speaker 9>crazier is that he is using, you know, hard working Americans'

0:08:50.000 --> 0:08:55.240
<v Speaker 9>dollars to fund his illegal bills. Right, He's allegedly a billionaire,

0:08:55.480 --> 0:08:57.200
<v Speaker 9>but he can't pay his own legal bills.

0:08:57.440 --> 0:09:00.319
<v Speaker 7>And to Herd's point, the pro Trump pack reported in

0:09:00.360 --> 0:09:02.040
<v Speaker 7>the week that it had spent most all of its

0:09:02.040 --> 0:09:07.240
<v Speaker 7>campaign fundraising money in legal defense. Two US Navy sailors

0:09:07.280 --> 0:09:10.320
<v Speaker 7>have been arrested on charges of providing sensitive US military

0:09:10.320 --> 0:09:13.880
<v Speaker 7>information to China. The Justice Department calls it a relentless

0:09:13.920 --> 0:09:16.959
<v Speaker 7>effort by China to gain US secrets. It says China

0:09:17.000 --> 0:09:20.560
<v Speaker 7>paid for the information. The US Attorney for the Southern

0:09:20.559 --> 0:09:24.760
<v Speaker 7>District of California, Randy Grossman, says these are very serious charges.

0:09:24.840 --> 0:09:28.520
<v Speaker 5>Statutes reserved for the most serious circumstances involving the passage

0:09:28.840 --> 0:09:32.520
<v Speaker 5>of national defense information intended to harm the United States

0:09:32.800 --> 0:09:35.440
<v Speaker 5>or for the benefit of a foreign power. The fact

0:09:35.480 --> 0:09:37.960
<v Speaker 5>that we've charged it in this case in San Diego

0:09:38.080 --> 0:09:40.720
<v Speaker 5>is a reflection of the seriousness of ways alleged conduct.

0:09:40.880 --> 0:09:44.760
<v Speaker 7>Now both men are Chinese born naturalized US citizens. One,

0:09:44.880 --> 0:09:48.000
<v Speaker 7>it is alleged, was paid thousand dollars for information on

0:09:48.400 --> 0:09:53.760
<v Speaker 7>vulnerabilities of ships, of photos of military hardware, and scores

0:09:53.800 --> 0:09:58.320
<v Speaker 7>of technical manuals. DOJ says this places lives of military

0:09:58.320 --> 0:10:03.480
<v Speaker 7>personnel at risk and weekends US Security Global News powered

0:10:03.480 --> 0:10:05.719
<v Speaker 7>by more than twenty seven hundred journalists and and list

0:10:05.800 --> 0:10:08.520
<v Speaker 7>in over one hundred and twenty countries. In San Francisco,

0:10:08.559 --> 0:10:11.480
<v Speaker 7>I'm Ed Baxter, and this is Bloomberg.

0:10:12.160 --> 0:10:14.760
<v Speaker 2>This is Bloomberg Daybreak Asia. I'm Brian Curtis, along with

0:10:14.840 --> 0:10:18.720
<v Speaker 2>Doug Krisner. Ushad Salamat is on TV assignment this hour.

0:10:19.000 --> 0:10:23.080
<v Speaker 2>Our guinst is Carol Pepper, founder and CEO at Pepper International.

0:10:23.440 --> 0:10:25.760
<v Speaker 2>I would note that Amazon is now up more than

0:10:25.840 --> 0:10:30.120
<v Speaker 2>ten percent in late trading after its earnings, and Carol,

0:10:30.200 --> 0:10:33.200
<v Speaker 2>you say a tech boom is coming. I would counter

0:10:33.240 --> 0:10:35.920
<v Speaker 2>that just a little bit, with yields drifting higher like

0:10:36.000 --> 0:10:39.760
<v Speaker 2>this is definitely cutting in to a certain extent on

0:10:40.240 --> 0:10:43.520
<v Speaker 2>some of the gains in big tech. Microsoft, for instance,

0:10:43.840 --> 0:10:47.640
<v Speaker 2>even after an impressive earnings report, is down since that period.

0:10:47.800 --> 0:10:49.760
<v Speaker 2>Your thoughts on where tech goes from here.

0:10:50.800 --> 0:10:53.719
<v Speaker 10>Yes, well, I think tech has a nice long run

0:10:53.760 --> 0:10:57.119
<v Speaker 10>ahead of it because we've got some very large sacular

0:10:57.240 --> 0:10:59.559
<v Speaker 10>trends that are going to continue to play out. So

0:11:00.000 --> 0:11:04.000
<v Speaker 10>every industry is going to be affected by artificial intelligence

0:11:04.000 --> 0:11:05.440
<v Speaker 10>that it's going to have to do some sort of

0:11:05.440 --> 0:11:10.080
<v Speaker 10>an upgrade. We've also seen that companies corporations have stopped,

0:11:10.520 --> 0:11:13.160
<v Speaker 10>you know, sort of just doing stock buybacks and are

0:11:13.360 --> 0:11:18.000
<v Speaker 10>reinvesting in technology and capital for the companies understanding that

0:11:18.080 --> 0:11:21.720
<v Speaker 10>they need to get ready for this next evolution because

0:11:22.120 --> 0:11:24.560
<v Speaker 10>robots and technology, frankly are going.

0:11:24.400 --> 0:11:29.839
<v Speaker 2>To the gains. I think the question is all the

0:11:29.880 --> 0:11:33.000
<v Speaker 2>gains already in No, not at all.

0:11:33.040 --> 0:11:35.280
<v Speaker 10>We're just at the beginning. This is just starting. We've

0:11:35.320 --> 0:11:38.560
<v Speaker 10>got a ten year run here. You recall I manage

0:11:38.600 --> 0:11:41.640
<v Speaker 10>money for people that have family offices over one hundred

0:11:41.640 --> 0:11:43.560
<v Speaker 10>million dollars. So we're always thinking about what are the

0:11:43.559 --> 0:11:45.600
<v Speaker 10>long term trends that we need to be part of.

0:11:46.200 --> 0:11:48.920
<v Speaker 10>And so this new push on AI, with the fact

0:11:48.920 --> 0:11:52.200
<v Speaker 10>that it's finally getting released and integrated into all kinds

0:11:52.240 --> 0:11:54.840
<v Speaker 10>of businesses, means we're just at the start of a

0:11:54.880 --> 0:11:59.320
<v Speaker 10>new secular trend in technology. The same with cybersecurity. We've

0:11:59.320 --> 0:12:01.800
<v Speaker 10>talked about that. You know that cybersecurity, which is also

0:12:01.840 --> 0:12:04.560
<v Speaker 10>an aspect of technology, will continue to have to be

0:12:04.600 --> 0:12:08.439
<v Speaker 10>a strong area of investment globally for all these corporations.

0:12:08.480 --> 0:12:10.840
<v Speaker 10>So I like to find long term trends that are

0:12:10.880 --> 0:12:12.520
<v Speaker 10>going to last for a long time. And it doesn't

0:12:12.559 --> 0:12:14.760
<v Speaker 10>matter if fields or up or down this month or

0:12:15.080 --> 0:12:17.079
<v Speaker 10>for six months. We're talking about how do you make

0:12:17.160 --> 0:12:19.920
<v Speaker 10>money over ten years. I mean, you look at Microsoft.

0:12:20.360 --> 0:12:23.680
<v Speaker 10>My goodness, if you had invested in that company, you know,

0:12:23.800 --> 0:12:26.320
<v Speaker 10>twenty years ago, you would have been up to almost

0:12:26.320 --> 0:12:28.800
<v Speaker 10>twenty nineteen hundred percent. So you have to look about

0:12:28.880 --> 0:12:32.320
<v Speaker 10>look at that nineteen hundred percent over twenty years.

0:12:32.400 --> 0:12:34.600
<v Speaker 1>Brian and I were talking earlier, Caroll.

0:12:34.480 --> 0:12:37.120
<v Speaker 10>On your time horizon. Your time horizon is key.

0:12:37.520 --> 0:12:39.839
<v Speaker 1>We were talking a moment ago about how the bond

0:12:39.840 --> 0:12:43.880
<v Speaker 1>market seems to be repricing under our scenario for a

0:12:43.920 --> 0:12:46.440
<v Speaker 1>soft landing. I mean that kind of supports a little

0:12:46.440 --> 0:12:48.480
<v Speaker 1>bit the growth story that you seem to be laying out.

0:12:48.480 --> 0:12:50.480
<v Speaker 1>But you don't. You're not bothered by the notion that

0:12:50.520 --> 0:12:52.800
<v Speaker 1>we could get a you know, four to twenty five,

0:12:52.960 --> 0:12:55.640
<v Speaker 1>let's say, on the ten uere but for how.

0:12:55.520 --> 0:12:58.720
<v Speaker 10>Long this is the question. If the soft landing happens right,

0:12:59.200 --> 0:13:03.200
<v Speaker 10>then sentiment shift. Remember also, August is always a funky month.

0:13:03.240 --> 0:13:06.400
<v Speaker 10>Half the traders are on vacation, there's not a lot

0:13:06.400 --> 0:13:09.120
<v Speaker 10>of volume in the market, and small pieces of news

0:13:09.640 --> 0:13:12.640
<v Speaker 10>move things around quickly, and so I think you get

0:13:12.679 --> 0:13:14.800
<v Speaker 10>a better indication of where yields are going to end

0:13:14.880 --> 0:13:18.319
<v Speaker 10>up in another month and a half after September fifteenth.

0:13:18.320 --> 0:13:21.000
<v Speaker 10>You know, you don't really want to go crazy about

0:13:21.040 --> 0:13:23.960
<v Speaker 10>what the market is indicating in August. It's never accurate.

0:13:24.600 --> 0:13:27.240
<v Speaker 2>Carol, I think many would agree with you about the

0:13:27.280 --> 0:13:30.400
<v Speaker 2>future prospects for these companies. There's not really too much

0:13:30.559 --> 0:13:33.360
<v Speaker 2>doubt about that. But the question, and the reason I

0:13:33.400 --> 0:13:37.080
<v Speaker 2>butted in before was the example of Microsoft, is that

0:13:37.720 --> 0:13:41.280
<v Speaker 2>the stock gained so much that investors are sort of

0:13:41.320 --> 0:13:43.960
<v Speaker 2>backing away as they are starting to sort of back

0:13:44.000 --> 0:13:47.120
<v Speaker 2>away a little bit from Apple. So it definitely is

0:13:47.440 --> 0:13:51.719
<v Speaker 2>show me new with new business, with new gains, and

0:13:52.040 --> 0:13:55.440
<v Speaker 2>that's the part that maybe just takes some time. I'm

0:13:55.480 --> 0:13:59.360
<v Speaker 2>not sure that these companies are monetizing AI at the moment,

0:13:59.559 --> 0:14:01.480
<v Speaker 2>so we have to be concerned about the big gains

0:14:01.480 --> 0:14:02.560
<v Speaker 2>in the stock prize.

0:14:02.880 --> 0:14:06.040
<v Speaker 10>Well, look at Amazon, for example. The problem with these companies.

0:14:06.120 --> 0:14:09.280
<v Speaker 10>A lot of these big companies in technology, they'll have

0:14:09.320 --> 0:14:11.120
<v Speaker 10>a huge run up and then they'll go flat for

0:14:11.160 --> 0:14:12.800
<v Speaker 10>a year or two, and then they might go down

0:14:12.840 --> 0:14:15.360
<v Speaker 10>a bit, and then suddenly they'll have another run. So

0:14:15.559 --> 0:14:19.000
<v Speaker 10>Amazon from last year to now is up almost fifty percent.

0:14:19.200 --> 0:14:21.080
<v Speaker 10>If you had been out of Amazon and not sure

0:14:21.080 --> 0:14:23.240
<v Speaker 10>when the run was going to happen, you would have

0:14:23.320 --> 0:14:26.800
<v Speaker 10>missed that fifty percent gain. People may say, well, fifty percent,

0:14:26.840 --> 0:14:29.200
<v Speaker 10>that's it. It's not going any higher, but again over

0:14:29.280 --> 0:14:31.480
<v Speaker 10>what period of time, And it's very hard to time

0:14:31.560 --> 0:14:32.000
<v Speaker 10>the market.

0:14:34.520 --> 0:14:37.360
<v Speaker 2>This is Bloomberg Daybreak Asia, your morning brief on this

0:14:37.440 --> 0:14:41.040
<v Speaker 2>story's making news from Hong Kong to Singapore and Wall Street.

0:14:41.120 --> 0:14:45.080
<v Speaker 1>Look for us on your podcast feed every day, on Apple, Spotify,

0:14:45.360 --> 0:14:47.280
<v Speaker 1>and anywhere else you get your podcasts.

0:14:47.360 --> 0:14:49.920
<v Speaker 2>You can also listen live each day on Bloomberg eleven

0:14:49.960 --> 0:14:52.320
<v Speaker 2>three to zero in New York, Bloomberg ninety nine to

0:14:52.360 --> 0:14:55.600
<v Speaker 2>one in Washington, Bloomberg one oh six y one in Boston,

0:14:55.880 --> 0:14:58.320
<v Speaker 2>and Bloomberg nine sixty in San Francisco.

0:14:58.400 --> 0:15:01.280
<v Speaker 1>Our flagship New York station is also available on your

0:15:01.320 --> 0:15:06.560
<v Speaker 1>Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.

0:15:06.680 --> 0:15:10.080
<v Speaker 2>Listen coast to coast on the Bloomberg Business app, Sirius

0:15:10.240 --> 0:15:14.480
<v Speaker 2>XM Channel one nineteen, the iHeartRadio app, and on Bloomberg

0:15:14.560 --> 0:15:17.000
<v Speaker 2>dot Com. I'm Brian Curtis.

0:15:16.920 --> 0:15:19.360
<v Speaker 1>And I'm Doug Krisner. Join us again tomorrow for all

0:15:19.400 --> 0:15:21.880
<v Speaker 1>the news you need to start your day right here

0:15:21.960 --> 0:15:26.040
<v Speaker 1>on Bloomberg Daybreak Asia