Dodgers Win World Series; Microsoft & Meta Shares Fall

Bloomberg Audio Studios, Podcasts, Radio News. 0:00:09.400 --> 0:00:12.200 Good morning, I'm Nathan Hager and I'm John Tucker. Here 0:00:12.240 --> 0:00:13.800 are these stories we're following today. 0:00:13.880 --> 0:00:15.680 John will have much more on the markets and the 0:00:15.720 --> 0:00:18.720 latest reaction to Microsoft and Meta earnings, but we begin 0:00:18.800 --> 0:00:21.800 this morning with sports. The Los Angeles Dodgers have been 0:00:21.880 --> 0:00:26.040 crowned World Series champions thanks to a colossal meltdown by 0:00:26.079 --> 0:00:28.800 the New York Yankees. Let's get the latest with Bloomberg's 0:00:28.840 --> 0:00:31.200 John stash Hour. Good morning, John, Good morning Nathan. 0:00:31.240 --> 0:00:33.400 The Yankees looked very much like they were going to 0:00:33.440 --> 0:00:36.040 be heading back to Los Angeles Game six tomorrow, fifth 0:00:36.080 --> 0:00:37.640 inning and they led five to nothing. They had hit 0:00:37.680 --> 0:00:39.720 three home runs and the Dodgers hadn't had a hit. 0:00:39.760 --> 0:00:42.440 But then came a series of Yankee blunders. 0:00:43.000 --> 0:00:45.960 And it's line to son of field charging Judge mc 0:00:46.080 --> 0:00:51.319 hey dropped the ball and throws to second. I'm too late, 0:00:52.200 --> 0:00:54.360 so that'd be an era on Judge, the first time 0:00:54.360 --> 0:00:55.000 I've seen him. 0:00:54.920 --> 0:00:58.040 Dubble ball wfan. Then came an air on Anthony Volpi, 0:00:58.080 --> 0:00:59.640 and then what should have been the third out without 0:00:59.640 --> 0:01:01.920 a run I've scored, but Garrett Cole failed to cover 0:01:02.040 --> 0:01:04.600 first base. Dodgers was scored five hundred and runs to 0:01:04.640 --> 0:01:06.720 tie the game, took the lead of the eighth one 0:01:06.840 --> 0:01:09.160 seven to six, and won the World Series four games 0:01:09.200 --> 0:01:11.399 to one. John stashed Awa Bloomberg Sports. 0:01:11.520 --> 0:01:13.120 All right, John, thank you, and you'll be back in 0:01:13.160 --> 0:01:15.479 a few minutes for more details, as well as postgame 0:01:15.520 --> 0:01:17.800 reaction from Yankee Stadium and Nathan. 0:01:17.880 --> 0:01:20.080 Let's turn to the markets, who are seeing negative reaction 0:01:20.120 --> 0:01:24.000 to earnings from two tech heavyweights. Nasdaq futures down one percent. 0:01:24.200 --> 0:01:27.280 Let's start with Microsoft. Those shares downright now three point 0:01:27.319 --> 0:01:30.039 seven percent of the pre market profit and revenue did 0:01:30.040 --> 0:01:34.440 top analyst forecast, with the software maker forecast slower quarterly 0:01:34.520 --> 0:01:38.120 cloud revenue growth. Analysts say that reflects struggles to bring 0:01:38.200 --> 0:01:40.880 data centers online fast enough to keep up with demand 0:01:40.880 --> 0:01:45.600 for artificial intelligence services. Still, the Microsoft CEO Sancha Todella 0:01:45.800 --> 0:01:48.200 was optimistic on the company conference call. 0:01:48.680 --> 0:01:52.360 All up, our AI business is on track to surpass 0:01:52.440 --> 0:01:56.080 an annual revenue run rate of ten billion dollars next quarter, 0:01:56.520 --> 0:01:59.280 which will make it the fastest business in our history 0:01:59.320 --> 0:01:59.760 to reach this. 0:01:59.840 --> 0:02:04.240 Microsoft CEO Sancha Adellas's capital expenditures in the first quarter 0:02:04.480 --> 0:02:07.560 were at fourteen point nine billion dollars. That's of fifty 0:02:07.680 --> 0:02:11.560 percent from a year earlier, at exceeded analyst expectations. 0:02:11.800 --> 0:02:14.160 Of course, John, We're also watching shares of Meta platforms. 0:02:14.200 --> 0:02:16.720 They're down four percent in the pre market. The Facebook 0:02:16.720 --> 0:02:20.000 owner is warning of worsening losses as CEO Mark Zuckerberg 0:02:20.120 --> 0:02:24.200 ramps up heavy investments in AI and other futuristic technologies. 0:02:24.360 --> 0:02:26.480 We get the story from Bloomberg's Charlie Pellett. 0:02:26.720 --> 0:02:29.760 It continues a year's long tug of war between the 0:02:29.800 --> 0:02:33.560 company's long term bets and the core advertising business that 0:02:33.680 --> 0:02:39.120 provides the vast majority of Meta's revenue. Zuckerberg warned investors 0:02:39.160 --> 0:02:42.920 that Meta will continue to spend significantly on infrastructure and 0:02:43.000 --> 0:02:47.400 other projects like the Metaverse and AI powered glasses efforts. 0:02:47.440 --> 0:02:50.720 He believes our core to the company's future that will 0:02:50.760 --> 0:02:54.240 be supported by the ads business, which is not generating 0:02:54.280 --> 0:02:57.519 the kind of momentum Wall Street expected in New York. 0:02:57.639 --> 0:02:59.440 Charlie Pellett, Bloomberg Radio, All. 0:02:59.400 --> 0:03:02.200 Right, thanks Charlie, and the high tech earnings they continue 0:03:02.240 --> 0:03:05.440 this afternoon. Apple and the Amazon both report and after 0:03:05.520 --> 0:03:08.120 the close it regular trading today. Let's go to preview 0:03:08.160 --> 0:03:09.560 now from Bloomberg's Tom Busby. 0:03:09.720 --> 0:03:13.079 At Apple, the keeper investors sales of its latest smartphone, 0:03:13.120 --> 0:03:16.560 the AI capable iPhone sixteen, as well as its latest 0:03:16.560 --> 0:03:19.519 air pods and smart watches. Investors will also want to 0:03:19.560 --> 0:03:24.200 hear the latest guidance on its AI initiatives, called Apple Intelligence. 0:03:24.520 --> 0:03:26.840 At Amazon, the big focus will be on its cloud 0:03:26.840 --> 0:03:29.480 computing unit and whether all the money is spent on 0:03:29.680 --> 0:03:33.680 AI technology is going to boost revenues at Amazon Web Services. 0:03:34.120 --> 0:03:36.800 Also of note its advertising business and any update on 0:03:36.880 --> 0:03:39.760 efforts to speed up delivery times ahead of the busy 0:03:39.800 --> 0:03:44.280 holiday shopping season and how it's battling rivals like Walmart, Target, 0:03:44.280 --> 0:03:47.040 and Timu, Tom Busby, Bloomberg. 0:03:46.600 --> 0:03:48.840 Radio, Okay, tom thank You. Some other stocks on the 0:03:48.840 --> 0:03:52.400 move following earning. Shares of Roku are down fourteen percent. 0:03:52.520 --> 0:03:55.120 The maker of streaming TV set top boxes says it's 0:03:55.120 --> 0:03:57.120 no longer going to report the number of households that 0:03:57.280 --> 0:04:00.640 use its products each quarter. Robinhood share They're down more 0:04:00.640 --> 0:04:03.200 than ten and a half percent. The brokerage reported revenue 0:04:03.200 --> 0:04:06.400 that missed analyst estimates, and eBay is down more than 0:04:06.520 --> 0:04:09.800 nine percent. The e commerce company projected holiday sales that 0:04:09.880 --> 0:04:12.480 fell short of analyst expectations and Nathan. 0:04:12.520 --> 0:04:15.360 In Asia, the Bank of Japan kept its benchmark interest 0:04:15.400 --> 0:04:18.760 rate unchanged. BOJ also maintaining its view that it's on 0:04:18.839 --> 0:04:21.719 track to achieve its inflation target. That does suggest a 0:04:21.760 --> 0:04:25.280 possible rate hike in the coming months. The end strengthening 0:04:25.320 --> 0:04:27.800 this morning of about six tenths of a percent, just 0:04:27.880 --> 0:04:28.840 over one fifty two. 0:04:29.320 --> 0:04:32.040 Let's turn to the latest now on the presidential race, John. 0:04:32.040 --> 0:04:34.640 As the campaign heads into its final stretch, Donald Trump 0:04:34.680 --> 0:04:37.039 is seizing on a comment from President Biden where he 0:04:37.080 --> 0:04:39.240 seemed to call Trump supporters garbage. 0:04:39.320 --> 0:04:40.839 How do you like my garbage truck? 0:04:41.279 --> 0:04:44.440 This truck is an honor of Kamala and Joe Biden. 0:04:44.600 --> 0:04:48.120 The former president rolled into Wisconsin aboard a white garbage 0:04:48.120 --> 0:04:51.039 truck with the words make America great Again in red 0:04:51.120 --> 0:04:53.839 on the side. Trump says he doesn't know the comedian 0:04:53.839 --> 0:04:56.839 who sparked the garbage flat by calling Puerto Rico a 0:04:56.839 --> 0:04:59.919 floating island of garbage at last weekend's Madison Square Garden rally. 0:05:00.240 --> 0:05:03.480 President Biden has tried to clarify his remarks, but Trump 0:05:03.600 --> 0:05:06.120 leaned into them at a rally in Green Bay, Wisconsin 0:05:06.200 --> 0:05:06.640 last night. 0:05:06.960 --> 0:05:10.520 My response to Joe and Kamala is very simple. You 0:05:10.600 --> 0:05:14.240 can't lead America if you don't love Americans. 0:05:14.360 --> 0:05:16.880 That's true and from the President. Trump was joined at 0:05:16.920 --> 0:05:20.040 the Green Bay rally by a hometown legend, retired Packers 0:05:20.120 --> 0:05:21.680 quarterback Brett farre. 0:05:22.360 --> 0:05:26.080 Okamala Harris held her own Star instud At rally in Madison, Wisconsin, 0:05:26.279 --> 0:05:30.360 featuring indie rock musicians from the band's Mumford and Sons, 0:05:30.600 --> 0:05:33.880 and the National The Vice President urging voters to turn 0:05:33.920 --> 0:05:35.000 the page on Donald Trump. 0:05:35.240 --> 0:05:41.160 Folks are exhausted and want it to stop the pointing fingers. 0:05:41.720 --> 0:05:44.600 It is time that we start locking. 0:05:44.440 --> 0:05:50.080 Arms together as a people who rise and hall together. 0:05:51.160 --> 0:05:54.159 Vice President Harris also held e Vinci in Harrisburg, Pennsylvania 0:05:54.240 --> 0:05:57.880 ad Raleigh, North Carolina. Earlier, she tried to distance herself 0:05:57.920 --> 0:06:00.120 from President Biden's comments. 0:06:00.120 --> 0:06:04.000 Of all, he clarified his comments, but let me be Claire. 0:06:04.080 --> 0:06:10.120 I songly disagree with any criticism of people based on. 0:06:10.160 --> 0:06:13.520 Who they vote for, Kamala Harris, noting that the President 0:06:13.560 --> 0:06:17.960 said he meant to say Trump supporters rhetoric is garbage. Today, 0:06:17.960 --> 0:06:20.320 both the Vice president and former President Trump will be 0:06:20.480 --> 0:06:23.520 in the sun Belt with dueling campaign stops in Arizona 0:06:23.560 --> 0:06:26.920 and Nevada, which is five days to go until the election. 0:06:27.240 --> 0:06:30.560 As for President Biden, he is sending mediators to Israel 0:06:30.640 --> 0:06:33.320 to try to broke a truce in Lebanon Prime Minister 0:06:33.400 --> 0:06:36.240 Benjamin Natanya, who met with AIDS late Tuesday to discuss 0:06:36.320 --> 0:06:38.839 the latest proposal. Today, he'll talk about it with the 0:06:38.839 --> 0:06:42.520 White House's senior Middle East envoys, Brett McGirk and Almos Hokstein. 0:06:42.839 --> 0:06:45.000 The new plan calls for a sixty day pause in 0:06:45.040 --> 0:06:47.800 fighting to ensure Hesbola doesn't receive any more weapons from 0:06:47.839 --> 0:06:50.880 Iran and moves farther away from the northern Israeli border. 0:06:51.160 --> 0:06:55.600 Hesbola hasn't signaled yet whether it's interested. 0:06:57.160 --> 0:06:59.200 All right, Thanks Nathan. Five seven on Wall Street and 0:06:59.320 --> 0:07:00.760 it's tundown for a look at some of the other 0:07:00.800 --> 0:07:03.680 stories making news in New York and around the world. 0:07:03.800 --> 0:07:06.440 Dan for that, We're joined by Bloomberg's Michael Parr. Michael, 0:07:06.440 --> 0:07:09.840 good morning, Good morning, John. Defense Secretary Lloyd Austin says 0:07:09.920 --> 0:07:13.920 North Korean troops have been outfitted with Russian uniforms and equipment, 0:07:14.360 --> 0:07:17.120 and there is a good likelihood that those troops will 0:07:17.160 --> 0:07:20.840 be involved in the war in Ukraine. Austin says Ukraine 0:07:20.880 --> 0:07:22.920 can use US provided weapons. 0:07:23.200 --> 0:07:26.200 Ukrainian soldiers have the right to defend themselves and they 0:07:26.200 --> 0:07:29.560 will do that with the weapons that we provided and 0:07:29.680 --> 0:07:30.600 others have provided. 0:07:31.360 --> 0:07:35.120 That's to be expected. Secretary Austin met at the Pentagon 0:07:35.200 --> 0:07:39.320 with South Korea's Defense Minister Washington says thousands of North 0:07:39.400 --> 0:07:42.520 Korean fighters could be on the front lines within weeks. 0:07:43.120 --> 0:07:46.840 North Korea has launched a new intercontinental ballistic missile, in 0:07:46.880 --> 0:07:49.600 its first test in almost a year of a weapon 0:07:49.640 --> 0:07:53.800 design to threaten the US mainland and occurring days ahead 0:07:53.800 --> 0:07:57.080 of the US election. North Korean media said lead to 0:07:57.120 --> 0:08:01.240 Kim joan un ordered. Today's missilet has to show North 0:08:01.320 --> 0:08:05.920 Korea's resolve to respond to its enemies move. There is 0:08:06.040 --> 0:08:08.760 new information about the man police in the Portland, Oregon 0:08:08.800 --> 0:08:13.400 area are looking for after several fires in ballot drop boxes. 0:08:13.720 --> 0:08:16.240 Mike Benner with the Portland Police. 0:08:16.200 --> 0:08:19.440 We can describe the suspect that we believe is connected 0:08:19.760 --> 0:08:22.160 to all three cases as a white male between the 0:08:22.160 --> 0:08:25.920 ages of thirty and forty years old, faulding or very 0:08:26.040 --> 0:08:31.400 short hair, medium to thin build, dark shirt, thin face. 0:08:32.120 --> 0:08:36.400 Police spokesman Benner says they believe their suspect may intend 0:08:36.440 --> 0:08:39.760 to continue targeted attacks. It is now a top priority 0:08:39.800 --> 0:08:43.160 for the FBI. New potential path to freedom for the 0:08:43.200 --> 0:08:46.840 Menendez brothers. Days after announcing that he's asking the court 0:08:46.840 --> 0:08:51.200 to be re sentenced the brothers, Los Angeles DA George 0:08:51.200 --> 0:08:55.640 Gaskin is requesting clemency from California's governor, but freedom is 0:08:55.679 --> 0:08:58.800 still not guaranteed for the brothers. Managing partner of the 0:08:58.840 --> 0:09:03.679 Conchrane firm, lawyer CHAWNA. Lloyd, says Gaskin's clemency request is 0:09:03.720 --> 0:09:04.840 a big deal for the brothers. 0:09:05.520 --> 0:09:08.160 When we're talking about an application for clemency, we know 0:09:08.240 --> 0:09:11.280 that with having the DA support is important because if 0:09:11.280 --> 0:09:14.959 the DA actually believes that you should have your sentence community, 0:09:15.040 --> 0:09:17.000 that's going to go strongly with the governor when he 0:09:17.080 --> 0:09:17.720 considers it. 0:09:18.240 --> 0:09:21.640 Lawyer Channe Lloyd spoke to ABC Global News twenty four 0:09:21.640 --> 0:09:23.400 hours a day and whatever you want it with Bloomberg 0:09:23.440 --> 0:09:25.520 News Now. I'm Michael Barr, this is Bloomberg. 0:09:25.600 --> 0:09:32.320 John, Thank you, Michael, and the Princess to five ten 0:09:32.400 --> 0:09:35.200 on Wall Street turned out for the Bloomberg Sports Update 0:09:35.320 --> 0:09:37.240 bront to you by Tri State. Out of half of 0:09:37.280 --> 0:09:40.359 that we bring in John staff sharer John Good morning. 0:09:40.160 --> 0:09:42.240 Yeah, good morning John. World Series Game five in the 0:09:42.240 --> 0:09:45.079 Bronx had a great Yankee start, the Aaron Judge hom 0:09:45.160 --> 0:09:47.200 run that everyone's been waiting for. He went back to 0:09:47.240 --> 0:09:50.319 back with Jazz Chisholm John Carlos Stanton his seventh homber 0:09:50.320 --> 0:09:52.360 of the postseason. The Yanks led the Dodgers five to 0:09:52.440 --> 0:09:55.280 nothing in La was hitless against Garrett called top of 0:09:55.280 --> 0:09:57.720 the fifth and eight may go down as the most 0:09:57.840 --> 0:10:01.080 nightmarish in Yankee history. Continued it took place in the 0:10:01.120 --> 0:10:04.160 World Series. Judge, who had earlier made a sensational catch 0:10:04.240 --> 0:10:07.520 against the wall, dropped the easiest of fly balls. Anthony 0:10:07.600 --> 0:10:10.439 Volpi had a throwing air and Cole then had two strikeouts, 0:10:10.480 --> 0:10:12.360 one of Joey Oltani and when Woki Vitz had a 0:10:12.360 --> 0:10:14.120 ground ball, the first looked at the inning was over 0:10:14.200 --> 0:10:18.079 coal filled the cover. Dodgers would score five hundred runs 0:10:18.080 --> 0:10:19.800 to tie the game, and two more in the eighth 0:10:19.840 --> 0:10:22.560 inning to go ahead. Bottom of the ninth came the 0:10:22.640 --> 0:10:24.560 celebration swinging a. 0:10:24.640 --> 0:10:30.880 Miss and the Dodgers are World Series champions. They storm 0:10:30.960 --> 0:10:35.000 out of the dugout third base side and mob walker Buehler. 0:10:35.640 --> 0:10:38.400 The ESPN first championship for LA since twenty twenty that 0:10:38.520 --> 0:10:41.160 was COVID. This is the first not in a shortened 0:10:41.200 --> 0:10:44.120 season since nineteen eighty eight. Afterwards, Iron Brewin obviously asked 0:10:44.160 --> 0:10:46.920 about that fifth inning, including the play at first base. 0:10:47.400 --> 0:10:53.240 Mookie hits the squibver so Riz couldn't really run through it, 0:10:53.640 --> 0:10:55.320 you know, he kind of had to stay there and 0:10:55.360 --> 0:10:57.800 make sure he secured the catch because of the spin 0:10:57.880 --> 0:11:00.600 on the ball. And I think just you know, Garrett 0:11:00.640 --> 0:11:03.160 just all that he went through in that inning, kind 0:11:03.200 --> 0:11:05.400 of spent and kind of almost working his way out 0:11:05.400 --> 0:11:07.760 of it, just didn't react quick enough to get over. 0:11:07.960 --> 0:11:10.160 Boon did win his first pennant as a Yankee manager, 0:11:10.200 --> 0:11:12.680 but not the World Series. Nicks in Miami got forty 0:11:12.679 --> 0:11:15.040 four points from Karl Anthony. Towns beat the Heat one 0:11:15.080 --> 0:11:18.160 seventeen one oh six, next one in Memphis one nineteen 0:11:18.280 --> 0:11:20.679 one oh six. Celtics first loss. It came in overtime 0:11:20.720 --> 0:11:24.360 at Indiana. Devil's won six nothing. Islanders lost to nothing 0:11:24.440 --> 0:11:26.839 in the two and six Jets host the six and 0:11:26.960 --> 0:11:30.360 two Houston Texans tonight, John Stash they were Bloomberg Sports. 0:11:30.400 --> 0:11:31.359 Nathan and Jones. 0:11:33.080 --> 0:11:37.200 Coast to Coast on Bloomberg Radio nationwide on Sirius XM 0:11:37.280 --> 0:11:40.160 and around the world on Bloomberg dot Com and the 0:11:40.240 --> 0:11:44.360 Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm 0:11:44.440 --> 0:11:45.080 Nathan Hager. 0:11:45.160 --> 0:11:48.079 We are seeing a disappointed investor reaction this morning to 0:11:48.120 --> 0:11:51.280 the two latest tech companies to report earnings. Microsoft as 0:11:51.320 --> 0:11:54.839 forecasting slower revenue growth in the cloud, while Meta Platforms 0:11:54.840 --> 0:11:58.480 plans to keep spending big on artificial intelligence. Now, the 0:11:58.559 --> 0:12:01.439 question for both companies is whether the payoff from AI 0:12:02.120 --> 0:12:04.280 is coming fast enough for more. We're joined by Dan 0:12:04.360 --> 0:12:07.280 I've senior equity research analyst at web Bush Securities. 0:12:07.679 --> 0:12:08.520 Dan, Good morning. 0:12:08.559 --> 0:12:11.240 A lot of the focus, of course on Microsoft is 0:12:11.280 --> 0:12:16.400 on the forecast for Azure cloud growth. Is too much 0:12:16.720 --> 0:12:19.040 data center demand? Too much of a good thing? 0:12:19.160 --> 0:12:19.680 Good morning. 0:12:20.480 --> 0:12:24.280 Hey, Look, I think this is one where the robust 0:12:24.440 --> 0:12:28.000 growth on cloud and AI is actually continuing. So I 0:12:28.040 --> 0:12:31.680 think any sort of negative knee jerk reaction I think 0:12:31.760 --> 0:12:35.880 is the wrong move because it just shows the momentums continuing. 0:12:36.559 --> 0:12:39.880 We're buyers and Microsoft here. It shows the AI revolution 0:12:40.000 --> 0:12:41.400 hitting the next stage of growth. 0:12:41.720 --> 0:12:45.080 Does Microsoft, though, need to show more when it comes 0:12:45.160 --> 0:12:47.679 to the buildout look. 0:12:47.760 --> 0:12:51.760 I think this is one where investors are always concerned 0:12:52.080 --> 0:12:54.400 that they're just there's going to be one quarter that 0:12:54.440 --> 0:12:58.000 you don't see it, But it's actually the opposite, and 0:12:58.080 --> 0:13:03.320 Microsoft has such good visibility. You're looking at massive growth. 0:13:03.840 --> 0:13:07.040 I mean, asure is something that it's two times bigger 0:13:07.040 --> 0:13:10.480 than anyone thought it was two years ago. So you 0:13:10.520 --> 0:13:13.160 start to see this all playing through. I think this 0:13:13.360 --> 0:13:15.280 is just the beginning of the next phase of the 0:13:15.320 --> 0:13:16.560 Microsoft growth story. 0:13:17.000 --> 0:13:21.240 So where is Microsoft positioned at this point now? After 0:13:21.520 --> 0:13:26.479 the positive earnings that we saw from a Google parent alphabet, 0:13:26.520 --> 0:13:31.880 particularly in Google Cloud, is Google nipping at Microsoft's as 0:13:31.920 --> 0:13:32.880 your heels right now? 0:13:33.600 --> 0:13:37.080 Look, I think this is a big enough otion from 0:13:37.120 --> 0:13:40.880 more than three boots in terms of Microsoft, Amazon, and Google. 0:13:41.240 --> 0:13:44.040 Google has definitely starting gain know al momentum, and I 0:13:44.080 --> 0:13:47.679 think that's clearly playing out. But that's not necessarily negative 0:13:47.679 --> 0:13:52.200 from Microsoft because the growth continues to be ultimating high 0:13:52.240 --> 0:13:55.719 than the street expected. You love knee jerk reactions in 0:13:55.840 --> 0:13:59.840 all these quarters. Meta of course Microsoft, but I think 0:14:00.080 --> 0:14:03.520 you look out twenty four hours a week from now. 0:14:03.679 --> 0:14:05.920 These stocks are up from here, I don't think they're down. 0:14:06.480 --> 0:14:11.880 Let's get two meta platforms and this warning from Mark Zuckerberg, 0:14:11.920 --> 0:14:15.040 the CEO, that the spending is going to continue and 0:14:15.120 --> 0:14:17.800 continue in a big way when it comes not just 0:14:17.840 --> 0:14:21.480 to AI but the metaverse. Still, how do you see 0:14:21.640 --> 0:14:26.040 Mark Zuckerberg's strategy when it comes to the future of meta. 0:14:26.600 --> 0:14:29.320 Look, it is the right strategy. They are doub one 0:14:29.400 --> 0:14:33.360 down on a transformational and technology once in forty years, 0:14:33.560 --> 0:14:36.080 and I think for meta we could say sort of 0:14:36.120 --> 0:14:38.680 split hairs and some gonna be worried about spending, But 0:14:38.720 --> 0:14:42.239 that's the right move because it's the next group platform 0:14:42.240 --> 0:14:45.160 for meta and that's why. Look, Stock's been rocket ship. 0:14:45.600 --> 0:14:48.120 You'll have some of these knee jerk reactions, but this 0:14:48.160 --> 0:14:51.240 story is not done. It's actually just the next wave 0:14:51.320 --> 0:14:52.720 that will be AI fueled. 0:14:53.720 --> 0:14:56.880 The next wave is coming after the close today when 0:14:56.920 --> 0:14:59.840 we hear from Apple and Amazon. Of course there's going 0:14:59.880 --> 0:15:02.280 to be a lot of attention on Amazon Web services 0:15:02.320 --> 0:15:05.600 now as well. What's the setup for the rest of 0:15:05.640 --> 0:15:07.640 big tech earnings in our final minute, Dan. 0:15:08.040 --> 0:15:10.640 Yeah, I think you set up strong from Amazon. I 0:15:10.680 --> 0:15:13.280 think investors are not expecting too much, but yet I 0:15:13.280 --> 0:15:17.000 think actually Aws that's another part of the growth story, 0:15:17.120 --> 0:15:19.040 just like we saw the Google and Microsoft. So I 0:15:19.080 --> 0:15:22.080 think we're bullsh on Amazon, but there's a proof of 0:15:22.200 --> 0:15:25.640 quarter for them. For Apple. Look, it's all about showing 0:15:25.800 --> 0:15:29.560 iPhone sixteen. This is the beginning of that AI driven supercycle. 0:15:29.920 --> 0:15:34.160 It's not happened overnight, but when Cook talks, everyone listens. 0:15:34.320 --> 0:15:37.119 It's all about China. I think it's going to be positive. 0:15:37.480 --> 0:15:41.080 And you end the week, you look back at tech earnings, 0:15:41.320 --> 0:15:43.400 you feel bullish in terms of AI, and I think 0:15:43.440 --> 0:15:44.840 where this border market's going. 0:15:46.520 --> 0:15:49.800 This is Bloomberg Daybreak here morning podcast on the stories 0:15:49.880 --> 0:15:52.720 making news from Wall Street to Washington and beyond. 0:15:53.040 --> 0:15:55.440 Look for us on your podcast feed by six am 0:15:55.480 --> 0:15:58.840 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:15:58.920 --> 0:16:01.400 You can also listen log each morning starting at five 0:16:01.480 --> 0:16:04.360 am Wall Street time. I'm Bloomberg eleven three zero New York, 0:16:04.400 --> 0:16:07.640 Bloomberg ninety nine to one in Washington, Bloomberg ninety two 0:16:07.720 --> 0:16:11.440 nine in Boston, and nationwide. That's serious XAM Channel one 0:16:11.560 --> 0:16:12.280 twenty one. 0:16:12.400 --> 0:16:15.160 Plus listen coast to coast on the Bloomberg Business app 0:16:15.200 --> 0:16:17.960 now with Applecarplay and Android auto interfaces. 0:16:18.160 --> 0:16:20.800 And don't forget to subscribe to Bloomberg News Now. It's 0:16:20.880 --> 0:16:23.680 the latest news whenever you want it in five minutes 0:16:23.760 --> 0:16:28.040 or less. Search Bloomberg News Now, your favorite podcast platform 0:16:28.320 --> 0:16:30.200 to stay informed all day long. 0:16:30.480 --> 0:16:33.120 I'm John Tucker and I'm Nathan Hager. Join us again 0:16:33.160 --> 0:16:35.240 tomorrow morning for all the news you need to start 0:16:35.280 --> 0:16:37.400 your day right here on Bloomberg day Break