Big Tech Earnings Disappoint; US Jobs Report Preview

Bloomberg Audio Studios, Podcasts, radio news. Good morning, I'm Nathan 0:00:11.000 --> 0:00:13.960 Hager and I'm Karen Moscow. Here are the stories we're 0:00:14.000 --> 0:00:14.800 following today. 0:00:14.920 --> 0:00:18.520 Karen, this stock sell off is intensifying around the world. 0:00:18.560 --> 0:00:19.080 This morning. 0:00:19.120 --> 0:00:22.920 In Japan, the topics sank six point one percent that 0:00:22.960 --> 0:00:26.079 completed a two day drop of nine point two the 0:00:26.120 --> 0:00:29.520 biggest route over two days since Japan's tsunami back in 0:00:29.560 --> 0:00:33.000 twenty eleven. US futures, as you mentioned, are sliding once 0:00:33.040 --> 0:00:36.599 again after yesterday's Wall Street sell off, following data that 0:00:36.680 --> 0:00:39.920 showed weekly unemployment claims hit a near one year high 0:00:39.960 --> 0:00:44.200 while manufacturing shrank. Cam Harvey, professor at Duke Business School, 0:00:44.200 --> 0:00:46.800 thinks the FED is behind the ball again. 0:00:47.320 --> 0:00:51.360 The FED is very late again. So they were late 0:00:51.800 --> 0:00:55.640 to raise interest rates when they were kind of brushing 0:00:55.680 --> 0:01:01.320 off the inflation surge, and they're late to reduce the rates, 0:01:01.360 --> 0:01:04.200 and the cost could be very substantial. 0:01:04.360 --> 0:01:07.240 Duke Business Professor Cam Harvey thinks one of those costs 0:01:07.280 --> 0:01:10.880 could be a hard landing. Meanwhile, a rally in treasuries 0:01:10.920 --> 0:01:13.680 is now into its seventh straight day, and again checking 0:01:13.720 --> 0:01:15.920 the ten yurar, it's up six thirty seconds now. The 0:01:16.040 --> 0:01:18.399 yield three point nine to five percent. The two year 0:01:18.760 --> 0:01:20.640 is at four point one four percent. 0:01:21.040 --> 0:01:23.679 Well, Nathan, All of this makes this morning's jobs report 0:01:23.720 --> 0:01:26.920 at crucial data point four investors. The forecast is for 0:01:27.000 --> 0:01:29.400 a gain of one hundred and seventy five thousand non 0:01:29.640 --> 0:01:32.880 farm jobs in July. We get a preview from Bloomberg's 0:01:32.920 --> 0:01:33.720 Michael McKee. 0:01:34.040 --> 0:01:36.400 The forecast is for a slight cooling in the labor 0:01:36.440 --> 0:01:39.360 market during July, but the risk for Wall Street and 0:01:39.400 --> 0:01:42.440 the Fed is a more dramatic drop in hiring and 0:01:42.680 --> 0:01:46.160 or a large rise in unemployment. Jobs data from adp 0:01:46.440 --> 0:01:49.600 ISM and initial jobless claims have come in weaker than 0:01:49.600 --> 0:01:52.840 expected in the past few weeks. At their meeting Wednesday, 0:01:53.040 --> 0:01:56.760 FED officials acknowledged a payrolls led economic slowdown is now 0:01:56.760 --> 0:01:59.760 as much of a risk as higher inflation. A bad 0:01:59.800 --> 0:02:02.920 news report today could raise questions about their decision to 0:02:03.000 --> 0:02:06.480 hold rate steady this week. Investors have already priced in 0:02:06.600 --> 0:02:11.280 rate cuts at the next four FED meetings. Michael McKee Bloomberg. 0:02:10.880 --> 0:02:13.639 Radio, Thanks Mike. Adding the pressure to stocks as well 0:02:13.680 --> 0:02:17.680 some disappointing high tech earnings led by Intel. Those shares 0:02:17.720 --> 0:02:21.799 are plunging nearly twenty two percent The chip maker forecast 0:02:21.880 --> 0:02:24.800 revenue for the third quarter below estimates and is suspending 0:02:24.800 --> 0:02:27.880 its dividends starting in the fourth quarter. James Kacmac is 0:02:27.919 --> 0:02:30.280 a technology analystic Clockwise Capital. 0:02:30.560 --> 0:02:34.200 They have to write the ship somehow because the growth is. 0:02:34.240 --> 0:02:38.680 Just anemic, and one way to do that is to find. 0:02:38.440 --> 0:02:41.120 A way to grow. 0:02:40.200 --> 0:02:43.520 Again, or you can fix things on the expense side. 0:02:43.560 --> 0:02:46.000 And it looks like they're giving up on the former 0:02:46.400 --> 0:02:47.280 and going toward the. 0:02:47.280 --> 0:02:51.000 Ladder to that point. Clockwise Capital James Cackmac notes Intel 0:02:51.040 --> 0:02:55.320 plans to slash fifteen thousand jobs well Nathan. 0:02:55.360 --> 0:02:58.040 Shares of Amazon are down more than eight percent after 0:02:58.160 --> 0:03:00.960 years of cutting costs. Investors are sern the company is 0:03:01.000 --> 0:03:04.000 returning to a boom in spending. In an earnings call, 0:03:04.160 --> 0:03:07.520 Amazon's CEO Andy Jasse warn profits will have to take 0:03:07.560 --> 0:03:11.200 a back seat so the company can invest in artificial intelligence. 0:03:11.560 --> 0:03:14.000 It remain very bullish on the medium to long term 0:03:14.040 --> 0:03:17.320 impact of AI and every business we know and can imagine. 0:03:17.400 --> 0:03:19.959 The progress may not be one straight line for companies. 0:03:20.280 --> 0:03:22.359 Generative AI especially is quite. 0:03:22.120 --> 0:03:24.600 Iterative, and companies have to build muscle around the best 0:03:24.680 --> 0:03:26.639 way to solve actual customer problems. 0:03:27.280 --> 0:03:30.919 Amazon CEO Andy Jasse projected operating income for the current 0:03:31.000 --> 0:03:33.400 quarter will be eleven and a half billion to fifteen 0:03:33.480 --> 0:03:36.920 billion dollars. Analysts, on average, we're looking for fifteen point 0:03:37.080 --> 0:03:37.760 seven billion. 0:03:38.000 --> 0:03:40.880 Well, meantime, Karen, Apple is bucking the sell off trend 0:03:41.080 --> 0:03:44.160 somewhat this morning. The shares are down, but only by 0:03:44.240 --> 0:03:48.040 two tenths of one percent. Apple's predicting its new artificial 0:03:48.040 --> 0:03:51.760 intelligence features will spur iPhone upgrades in coming months and 0:03:51.840 --> 0:03:54.480 will help the company re emerge from a sales slowdown 0:03:54.520 --> 0:03:57.920 that hit its business in China, especially hard. Mark German 0:03:58.040 --> 0:03:59.640 covers Apple for Bloomberg News. 0:04:00.040 --> 0:04:02.720 Apple intelligence is really the big upgrade on the iPhone 0:04:02.760 --> 0:04:04.840 that they're trying to sell this year. They talked about 0:04:04.840 --> 0:04:07.480 AI so much on this call. I haven't heard them 0:04:07.480 --> 0:04:10.480 talk about AI so much since their Developer's conference in June, 0:04:10.680 --> 0:04:11.400 or maybe ever. 0:04:12.600 --> 0:04:16.200 Bloomberg technology reporter Mark German says, Apple projects total sales 0:04:16.200 --> 0:04:18.600 in the September quarter we'll grow at about five percent. 0:04:18.760 --> 0:04:21.120 Wall Street projected a four percent clip. 0:04:21.839 --> 0:04:23.800 Well, Nathan, we'll have more on the market sell off 0:04:23.800 --> 0:04:25.919 in tech earnings in a few minutes. But now President 0:04:26.000 --> 0:04:29.520 Biden is celebrating a major win in global diplomacy. The 0:04:29.520 --> 0:04:32.680 President was a joint based Andrews outside Washington last night 0:04:33.000 --> 0:04:37.000 as Wall Street General reporter Evan Gershkevich, former Marine Paul Wheeland, 0:04:37.000 --> 0:04:41.360 and journalist al su Kermasheva came home. The three Americans 0:04:41.360 --> 0:04:44.400 are part of the largest prisoner swamp with Russia since 0:04:44.440 --> 0:04:47.400 the Cold War, and President Biden said it couldn't have 0:04:47.480 --> 0:04:51.839 gone done without support from US allies, and what I said. 0:04:53.440 --> 0:04:57.039 Lines has making difference as we stepped up, but took a. 0:04:57.120 --> 0:04:59.200 Chance for that mattered a love. 0:04:59.640 --> 0:05:02.440 President and Biden was joined on the tarmac by Vice 0:05:02.480 --> 0:05:06.040 President and new presumptive Democratic nominee Kamala Harris. 0:05:06.400 --> 0:05:11.240 I'm very thankful for our president and what he has 0:05:11.640 --> 0:05:15.080 done for his entire career, put in particular as it 0:05:15.120 --> 0:05:16.799 relates to these families of these. 0:05:16.600 --> 0:05:20.719 Individuals, Vice President Harris, as the exchange did not come 0:05:20.800 --> 0:05:24.120 easily and returned for the Americans and other prisoners. Russia 0:05:24.120 --> 0:05:27.000 won the release of Adam Krazakov, who had been serving 0:05:27.080 --> 0:05:30.640 life in Germany for killing a Chechen separatist. Germany had 0:05:30.640 --> 0:05:32.560 long resisted Krasakov's release. 0:05:32.760 --> 0:05:35.760 Well now Karen, President Biden faces a diplomatic challenge in 0:05:35.800 --> 0:05:38.880 the Middle East. The President told Israeli Prime Minister Benjamin 0:05:38.920 --> 0:05:41.799 Natan Yahoo to agree to a cease fire with Hamas 0:05:42.120 --> 0:05:45.440 the two leaders spoke yesterday, Biden did pledge to support 0:05:45.480 --> 0:05:49.520 Israel against renewed threats from Iran and allied militias like 0:05:49.640 --> 0:05:51.080 Hesbolat Nathan. 0:05:51.120 --> 0:05:54.760 The UMSS has recognized Venezuelan opposition presidential candidate at Mundo 0:05:54.839 --> 0:05:58.279 Gonzalez in the disputed election, and Bloomberg's Ed Baxter has 0:05:58.360 --> 0:06:00.839 that story from US. 0:06:00.720 --> 0:06:03.520 Secretary of State Anthony Blincoln says it is clear to 0:06:03.560 --> 0:06:07.160 the United States and most importantly to the Venezuelan people, 0:06:07.560 --> 0:06:10.160 that Gonzalez has won the most votes in the July 0:06:10.279 --> 0:06:13.159 twenty eighth election. Blencoln goes on to say that the 0:06:13.240 --> 0:06:17.719 United States congratulates Gonzales on a successful campaign and hopes 0:06:17.720 --> 0:06:22.839 that discussions on a respectful, peaceful transition will occur. Opposition 0:06:22.920 --> 0:06:26.760 leader Maria Corrina Machavo meanwhile says she is in hiding, 0:06:27.279 --> 0:06:30.960 fearing for her life. Ed Baxter Bloomberg. 0:06:30.520 --> 0:06:33.040 Radio, Okay, and thank you. As for US politics, we 0:06:33.120 --> 0:06:35.160 have a winner in a primary race from more than 0:06:35.200 --> 0:06:37.599 a month ago. A Trump back to candidate has defeated 0:06:37.640 --> 0:06:41.040 the chairman of the Conservative House Freedom Caucus in Virginia's 0:06:41.120 --> 0:06:44.640 fifth congressional district. State Senator and former Navy seal John 0:06:44.720 --> 0:06:47.480 McGuire has been declared the winner over Congressman Bob Good 0:06:47.760 --> 0:06:50.440 by just three hundred and seventy votes out of nearly 0:06:50.560 --> 0:06:54.880 sixty three thousand casts. Before the recount, McGuire's lead was 0:06:54.880 --> 0:06:56.520 three hundred and seventy four votes. 0:06:57.400 --> 0:07:00.760 Nathan and Vice President Kamala Harris's camp Haynes, says she's 0:07:00.839 --> 0:07:03.440 raised a record at three hundred and ten million dollars 0:07:03.440 --> 0:07:07.000 in July. Harris's hall more than doubles nearly one hundred 0:07:07.000 --> 0:07:10.480 and thirty nine million Trump Rays last month. Harris's campaign 0:07:10.600 --> 0:07:14.600 says grassroots donors giving less than two hundred dollars accounted 0:07:14.640 --> 0:07:17.560 for ninety four percent of the four point two million 0:07:17.720 --> 0:07:24.160 donations that were received. Time Now for look at some 0:07:24.200 --> 0:07:25.840 of the other stories making news in New York and 0:07:25.840 --> 0:07:28.400 around the world. For that, we're joined by Bloomberg's John Tucker, John, 0:07:28.440 --> 0:07:29.200 Good morning, and. 0:07:29.160 --> 0:07:33.320 Good Morning Karen. Two NYPD officers are recovering after they 0:07:33.360 --> 0:07:36.520 were shot while responding to a robbery on Manhattan's Lower 0:07:36.560 --> 0:07:39.280 east Side. Police say a suspect armed with a gun 0:07:39.360 --> 0:07:42.800 began robbing women and snatching their purses in a Magine 0:07:42.840 --> 0:07:46.800 parlor at ninety one Canal Street yesterday afternoon. Nearby officers 0:07:46.840 --> 0:07:50.440 heard the screams and responded as the suspect fled. Police 0:07:50.480 --> 0:07:53.880 identified him as twenty two year old Joshua Dorset. While 0:07:53.880 --> 0:07:57.440 the officers caught the suspect, the NYPD says he fired 0:07:57.480 --> 0:08:02.560 one shot that struck both sergeants. New York Mayor Eric Adams. 0:08:02.480 --> 0:08:10.040 The suspect who actually visited his probation officer this morning, 0:08:11.920 --> 0:08:16.320 is in custody at this time, and I want to 0:08:16.320 --> 0:08:20.880 be clear our NYPDU officers did not fire on the suspect. 0:08:21.760 --> 0:08:24.400 One sergeant was hit in the upper thigh, the other 0:08:24.600 --> 0:08:28.040 was grazed on his leg. A sheriff is answering more 0:08:28.200 --> 0:08:30.600 questions after a deputy shot and killed a woman in 0:08:30.640 --> 0:08:33.480 her home last month, Sonya Massey called nine to one 0:08:33.559 --> 0:08:38.920 one about a possible intruder. Before the deputies arrived in Springfield, Illinois, 0:08:38.960 --> 0:08:42.320 Sheriff Jack Campbell was asked about now ex deputy Sean 0:08:42.400 --> 0:08:45.199 Grayson having worked for his several police agencies in a 0:08:45.240 --> 0:08:45.840 short time. 0:08:46.240 --> 0:08:49.679 There was nothing in his background that would disqualify him 0:08:49.679 --> 0:08:52.160 from being a police officer in Illinois. In fact, he'd 0:08:52.160 --> 0:08:55.240 been hired by five other agencies and he'd been certified 0:08:55.240 --> 0:08:57.679 by the Save Illinois six different times to be a 0:08:57.679 --> 0:08:59.920 police officer here, So it was nothing in his background 0:09:00.320 --> 0:09:01.560 and they would prevent him from being. 0:09:01.440 --> 0:09:02.160 A police officer. 0:09:02.480 --> 0:09:06.080 Sheriff Campbell sends. When the department failed Massie, he won't resign. 0:09:06.600 --> 0:09:10.720 Dozens of homes have been destroyed by wildfire in Larimer County, Colorado. 0:09:10.880 --> 0:09:13.200 This woman lives in the town of Drake and says 0:09:13.240 --> 0:09:16.240 she's gotten confirmation her home burned to the ground. 0:09:16.840 --> 0:09:18.880 So I've lost what. 0:09:19.040 --> 0:09:23.120 Is the best community in this the ninny world, and 0:09:23.160 --> 0:09:27.280 I'm very excit about That's that's very sad to me 0:09:28.679 --> 0:09:30.360 that we can no longer call that home. 0:09:31.360 --> 0:09:34.360 She says. She evacuated Monday while her husband had already 0:09:34.440 --> 0:09:37.400 left town for work. The blaze one of almost one 0:09:37.440 --> 0:09:41.080 hundred large fires ranging across the West, and more than 0:09:41.120 --> 0:09:43.880 one hundred video game performers picketed in front of the 0:09:43.880 --> 0:09:47.240 Warner Brothers Studios in Los Angeles to protest against what 0:09:47.280 --> 0:09:51.080 they call an unwillingness from top gaming companies to protect 0:09:51.200 --> 0:09:56.440 actors against the unregulated use of artificial Intelligence, Global news 0:09:56.480 --> 0:09:58.320 twenty four hours a day, whenever you want it with 0:09:58.400 --> 0:10:03.080 Bloomberg News. Now, I'm John, This is Bloomberg. Nathan and Karen. 0:10:03.160 --> 0:10:10.520 John, thank you timed off the Bloomberg Sports Update. But 0:10:10.640 --> 0:10:12.000 John Stashauer, John. 0:10:11.880 --> 0:10:15.280 Good morning, Good morning, Karen, Katie Ledecky and Simone Biles 0:10:15.360 --> 0:10:17.720 Olympic goats. They've got the hardware to prove it. The 0:10:17.760 --> 0:10:19.960 Decky part of the eight hundred freestyle realite team that 0:10:20.040 --> 0:10:24.120 won the silver medal, giving her thirteen career medals, most 0:10:24.160 --> 0:10:27.440 of any American female athlete files in competition that was 0:10:27.720 --> 0:10:31.040 closer than expected, still won the gold and the gymnastics 0:10:31.120 --> 0:10:33.600 all around her seventh career medal. Fourth Golds, who has 0:10:33.679 --> 0:10:36.040 won six World Championship Soony Lee, who won the gold 0:10:36.080 --> 0:10:38.360 three years ago this time took the bronze. But the 0:10:38.400 --> 0:10:42.640 Olympics so often about unknown athletes, like the four rowers 0:10:42.679 --> 0:10:44.560 that won the first US gold medal in that event 0:10:44.600 --> 0:10:48.120 since nineteen sixty and the women's fencing team winning a 0:10:48.200 --> 0:10:50.480 first ever gold for the US. It's the third career 0:10:50.480 --> 0:10:53.400 gold for Lee Keefer Yankee tonight started a nine game 0:10:53.400 --> 0:10:55.840 homestand against the Blue Jays Yanks touch would be better 0:10:55.920 --> 0:10:58.199 on the roads, had a five to one road trip. 0:10:58.559 --> 0:11:01.400 Tonight is Jazz Chisholm. His first game of the Pinstripes. 0:11:01.440 --> 0:11:03.720 He just had a pair of two home run games. 0:11:03.720 --> 0:11:07.240 He's also been playing a surprisingly solid third base. Here's 0:11:07.280 --> 0:11:08.960 Aaron Judge on his new teammate. 0:11:09.480 --> 0:11:11.760 Yes, a guy to played a new position for the 0:11:11.800 --> 0:11:15.120 first time his career, and you know, some big, big 0:11:15.160 --> 0:11:17.240 games for us, and it looks like he's been playing there, 0:11:17.320 --> 0:11:19.640 you know, his whole life. So it's he brings a 0:11:19.640 --> 0:11:22.720 great energy. He runs a base as well. We kind 0:11:22.720 --> 0:11:23.880 of like having him right in the middle of the 0:11:23.880 --> 0:11:27.520 lineup and it's doing some damage getting on base. It's 0:11:27.520 --> 0:11:28.199 spin a big part. 0:11:28.400 --> 0:11:31.000 Marcus Strouman on the Mount tonight. He has struggled lately. 0:11:31.040 --> 0:11:33.199 The Mets visit the Angels, who just got worried that 0:11:33.240 --> 0:11:36.520 they're so often injured. Star Mic Trap will miss the 0:11:36.559 --> 0:11:38.720 rest of the season with a knee injury. White Sox 0:11:38.720 --> 0:11:41.920 tonight bring their seventeen game losing streight to Minnesota. The 0:11:41.960 --> 0:11:44.679 Evan one since July tenthday earlier this season, lost thirteen 0:11:44.679 --> 0:11:47.719 in a row. First NFL preseason game in Canada, high 0:11:47.760 --> 0:11:50.000 the Bears beat the Texans twenty one to seventeen the 0:11:50.040 --> 0:11:52.280 Hall of Fame game. It was stopped in the third 0:11:52.360 --> 0:11:55.160 quarter due to severe weather. First looked at the NFL's 0:11:55.200 --> 0:11:58.079 new rule on kickoffs. Seven all time greats will be 0:11:58.120 --> 0:12:01.880 inducted in the Hall tomorrow. Dashell Er Bloomberg Sports carry. 0:12:01.720 --> 0:12:08.480 Nathan coast to coast on Bloomberg Radio, nationwide on Sirius XM, 0:12:08.559 --> 0:12:11.480 and around the world on Bloomberg dot Com and the 0:12:11.520 --> 0:12:15.760 Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm 0:12:15.800 --> 0:12:16.400 Nathan Hager. 0:12:16.440 --> 0:12:19.640 We are watching a global stock sell off this morning, 0:12:19.720 --> 0:12:23.439 led by big tech in this country after earnings disappointment 0:12:23.920 --> 0:12:26.800 from three tech giants. Joining us for some analysis as 0:12:26.880 --> 0:12:31.280 Matthew Bloxham, technology analysts for Bloomberg Intelligence Mad Good morning. 0:12:31.360 --> 0:12:34.479 Let's start with Intel. It is among the biggest laggards 0:12:34.520 --> 0:12:37.920 on the stock exchange this morning. Is Intel on the 0:12:37.960 --> 0:12:40.679 outside looking in when it comes to the AI race? 0:12:40.880 --> 0:12:42.360 Yeah, I think you very much here. Oh, you know, 0:12:42.440 --> 0:12:44.120 perhaps other way. You know, it's definitely on the wrong 0:12:44.160 --> 0:12:47.160 side of the AI opportunity right now. And you know, 0:12:47.240 --> 0:12:51.120 kind of quite a bleak update they gave yesterday, you know, 0:12:51.200 --> 0:12:54.600 kind of weak margins in the quarter and a very 0:12:54.720 --> 0:12:58.360 muted outlook for revenue growth next quarter, you know, probably 0:12:58.760 --> 0:13:00.679 twelve and a half to thirteen and ANUR billion dollars 0:13:00.760 --> 0:13:03.800 versus the market expectation of fourteen. But I think it 0:13:03.840 --> 0:13:06.679 goes beyond, you know, just the next quarter. What they're 0:13:06.720 --> 0:13:10.720 doing on downsizing the business and taking out more than 0:13:10.720 --> 0:13:13.760 fifteen percent of heads and cutting their gross capex by 0:13:13.760 --> 0:13:15.920 something like twenty percent or more. You know, it is 0:13:15.960 --> 0:13:20.000 a really clear signal that the forward market opportunity for 0:13:20.040 --> 0:13:24.320 them is substantially smaller than they had been expecting. And 0:13:24.360 --> 0:13:27.640 that's you know, a reflection of I guess kind of 0:13:27.640 --> 0:13:31.720 getting a little bit caught out by maybe the pace 0:13:31.760 --> 0:13:35.559 at which the geneesh Fai opportunity has taken off, and obviously, 0:13:35.640 --> 0:13:38.880 you know all of that opportunity occurring primarily to in video. 0:13:38.920 --> 0:13:42.320 You know, Intel used to be, you know, kind of 0:13:42.559 --> 0:13:46.480 really strong in the server market, and you know, all 0:13:46.520 --> 0:13:48.720 of those server investments, well most of them now really 0:13:48.720 --> 0:13:53.320 going towards AI powered technology, which is not a not 0:13:53.440 --> 0:13:55.079 a market that they're kind of really strong in. 0:13:55.559 --> 0:13:58.200 Well, it's turned to Amazon, where they've been focused on 0:13:58.360 --> 0:14:01.280 cost cuts for quite a few months now, Andy Jasse, 0:14:01.400 --> 0:14:04.720 the CEO, saying that he's gonna put profits on the 0:14:04.760 --> 0:14:08.560 back burner to really ramp up AI spending. How much 0:14:08.679 --> 0:14:11.120 catch up does Amazon have to play with some of 0:14:11.160 --> 0:14:12.520 the other players in the AI space. 0:14:13.440 --> 0:14:15.600 Yeah, I don't think they're playing catch up. They're just 0:14:15.679 --> 0:14:18.240 kind of matching all of the other big heavyweights, you 0:14:18.720 --> 0:14:22.320 dollar for dollar. You know, the market leader in cloud 0:14:22.360 --> 0:14:24.800 service has been investing for some time in AI. And 0:14:24.840 --> 0:14:28.120 you know, we've had a very familiar story from all 0:14:28.160 --> 0:14:30.880 of the big tech rivel So, you know, I think Microsoft, 0:14:31.040 --> 0:14:38.120 think Meta, Think Alphabet, Google, They're all investing huge billions 0:14:38.160 --> 0:14:43.480 of dollars to build their AI technology platforms for the 0:14:43.520 --> 0:14:45.880 mid to long term. You know, the revenue is coming through, 0:14:45.880 --> 0:14:48.800 but it's not coming through that quickly. But they all 0:14:48.840 --> 0:14:52.280 know that if they don't develop their technology platforms today, 0:14:52.920 --> 0:14:55.520 they'll miss out on a big show of the market 0:14:55.520 --> 0:14:58.440 in the midterm. And that's essentially what they're doing. 0:14:59.040 --> 0:15:02.200 I mean, while Apple is kind of bucking the overall 0:15:02.280 --> 0:15:05.280 sell off trend trading a little changed right now. They've 0:15:05.320 --> 0:15:08.760 delayed the rollout of their AI features, But is that 0:15:08.800 --> 0:15:10.880 going to be enough to spur this upgrade cycle that 0:15:10.960 --> 0:15:12.240 so many have been talking about. 0:15:12.600 --> 0:15:15.840 Well, yeah, I mean, you know, the the the AI 0:15:16.120 --> 0:15:20.720 features Apple Intelligence will start to come through in iPhone 0:15:20.760 --> 0:15:23.200 sixteen and so I think you know that that is 0:15:23.320 --> 0:15:27.200 really the next big focus for investors with Apple. If 0:15:27.240 --> 0:15:30.160 we looked at the quarter they just reported, iPhone stalls 0:15:30.200 --> 0:15:32.640 were still down slightly about one percent, but o there's 0:15:32.640 --> 0:15:34.640 a big improvement on the previous quarter. And obviously what 0:15:34.640 --> 0:15:36.560 they need to do, given that's you know, give or 0:15:36.560 --> 0:15:39.080 take fifty percent of their revenues, is get iPhone sales 0:15:39.480 --> 0:15:43.640 growing again. And you know, the product's refresh cycle and 0:15:43.960 --> 0:15:47.640 I guess a smartphone upgrade supercycle is what they need. 0:15:47.680 --> 0:15:51.040 And you know, the big hope is that intelligence or 0:15:51.360 --> 0:15:56.080 artificial intelligence features on the device and their slightly differentiated, 0:15:56.200 --> 0:15:59.840 unique way of offering AI is going to be enough 0:15:59.880 --> 0:16:02.680 to kind of get more customers to to upgrade. 0:16:02.880 --> 0:16:05.960 This is Bloomberg Daybreak Today, your morning brief on the 0:16:05.960 --> 0:16:09.400 stories making news from Wall Street to Washington and beyond. 0:16:09.680 --> 0:16:12.440 Look for us on your podcast feed at six am 0:16:12.520 --> 0:16:16.160 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:16.240 --> 0:16:17.400 get your podcasts. 0:16:17.520 --> 0:16:20.520 You can also listen live each morning starting at five am. 0:16:20.640 --> 0:16:23.000 Wall Street time on Bloomberg eleven three to zero in 0:16:23.080 --> 0:16:26.400 New York, Bloomberg ninety nine to one in Washington, Bloomberg 0:16:26.400 --> 0:16:29.080 one oh six to one in Boston, and Bloomberg ninety 0:16:29.120 --> 0:16:30.520 sixty in San Francisco. 0:16:30.880 --> 0:16:34.040 Our flagship New York station is also available on your 0:16:34.080 --> 0:16:39.520 Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus. 0:16:39.560 --> 0:16:43.120 Listen coast to coast on the Bloomberg Business app, seriusxmb 0:16:43.280 --> 0:16:46.160 iHeartRadio app, and on Bloomberg dot Com. 0:16:46.200 --> 0:16:47.360 I'm Nathan Hager and. 0:16:47.280 --> 0:16:50.600 I'm Karen Moscow. Join us again tomorrow morning for all 0:16:50.640 --> 0:16:53.160 the news you need to start your day right here 0:16:53.280 --> 0:17:04.000 on Bloomberg Daybreak