Amazon Surges While Apple Drops; Boeing Strike Deal

Bloomberg Audio Studios, podcasts, radio news. 0:00:11.080 --> 0:00:11.520 Good morning. 0:00:11.520 --> 0:00:14.160 I'm John Tucker and I'm Karen Moscow. Here are the 0:00:14.200 --> 0:00:15.640 stories we're following today. 0:00:15.800 --> 0:00:18.680 Karen, let's begin with mixed results from high tech. Shares 0:00:18.680 --> 0:00:21.360 of Apple right now down one point one percent in 0:00:21.400 --> 0:00:24.600 early trading. Apple says total sales in the December period 0:00:24.720 --> 0:00:27.240 are going to rise by a percentage in a low 0:00:27.280 --> 0:00:30.680 to middle single digits. Analysts have been projecting a seven 0:00:30.720 --> 0:00:34.520 percent increase. Apple CEO Tim Cook says he was happy 0:00:34.560 --> 0:00:35.400 with the recent quarter. 0:00:35.720 --> 0:00:40.040 iPhone grew in every geographic segment, marking a new September 0:00:40.120 --> 0:00:43.559 quarter revenue record for the category, and services set an 0:00:43.640 --> 0:00:46.800 all time revenue record up twelve percent year over year. 0:00:47.040 --> 0:00:52.000 We also set September quarter segment revenue records in the Americas, Europe, 0:00:52.159 --> 0:00:54.840 and the rest of Asia Pacific, as well as in 0:00:54.880 --> 0:00:56.320 a large number of countries. 0:00:57.160 --> 0:01:00.280 Apples CEO Tim Cook also wing on the stock this warning. 0:01:00.320 --> 0:01:03.560 The company posted a decline in China revenue last quarter, 0:01:03.680 --> 0:01:05.200 falling short of estimates. 0:01:05.720 --> 0:01:08.200 Well on the flip side, John, Amazon shares are at 0:01:08.280 --> 0:01:10.960 more than five and a half percent. Total third quarter 0:01:11.000 --> 0:01:14.160 revenue increased eleven percent to almost one hundred and fifty 0:01:14.240 --> 0:01:18.480 nine billion dollars. Operating profit was seventeen point four billion, 0:01:18.640 --> 0:01:21.720 demolishing the average estimate by two point of two point 0:01:21.760 --> 0:01:24.800 seven billion dollars or by two point seven The company 0:01:24.840 --> 0:01:27.400 has been spending heavily on the new data centers required 0:01:27.440 --> 0:01:30.720 for the boom and demand for artificial intelligence services. CEO 0:01:30.800 --> 0:01:33.880 Andy Jasse says investors will see that spending payoff in 0:01:33.920 --> 0:01:34.600 the long run. 0:01:35.000 --> 0:01:39.200 It is a really unusually large, maybe once in a 0:01:39.240 --> 0:01:43.800 lifetime type of opportunity, and I think our customers, the business, 0:01:44.080 --> 0:01:47.160 and our shareholders will feel good about this long term 0:01:47.160 --> 0:01:48.560 that we're aggressively pursuing it. 0:01:48.960 --> 0:01:52.120 And let's say, CEO Andy Jasse's years long push to 0:01:52.120 --> 0:01:55.880 cut costs and streamline Amazon's logistics operation have paid off. 0:01:56.200 --> 0:01:58.840 And here's an Intel They're of more than five percent 0:01:58.880 --> 0:02:02.840 pre market. The chipmaker forecast fourth quarter revenue above estimates, 0:02:02.880 --> 0:02:05.320 so the sparking optimism the company can win back some 0:02:05.400 --> 0:02:09.240 of its lost market share. Intel, once the industry leader 0:02:09.280 --> 0:02:13.120 in computer processors, is now working to preserve cash to 0:02:13.280 --> 0:02:16.960 fund a turnaround plan. And we spoke with the Intel 0:02:17.080 --> 0:02:18.280 CEO Pat Gelsinger. 0:02:18.720 --> 0:02:23.079 We've taken these steps this quarter and restructuring and getting 0:02:23.080 --> 0:02:24.400 our costs where they need to be. 0:02:24.680 --> 0:02:27.440 Here we have the capacity to go on the journey. 0:02:28.280 --> 0:02:31.200 In the prior quarter, the CEO Pat Gelsinger cut jobs, 0:02:31.200 --> 0:02:33.840 slash spatting, and suspended investor payouts. 0:02:34.600 --> 0:02:37.760 Well, Johnny. Earnings continue this morning with Big Oil on tap, 0:02:37.800 --> 0:02:39.840 and today we hear from Exon Mobile. We get a 0:02:39.840 --> 0:02:41.280 preview from Bloomberg's town. 0:02:41.120 --> 0:02:44.760 Busby Exon Mobile. Investors will likely focus on the company's 0:02:44.760 --> 0:02:48.840 ongoing production growth, especially in the Permian basin of West 0:02:48.880 --> 0:02:52.360 Texas and New Mexico and in Guyana. Also in focus 0:02:52.400 --> 0:02:55.679 recent cost cutting initiatives that are expected to give profitability 0:02:55.680 --> 0:03:00.240 a boost despite slightly lower crewde prices. Bloomberg consensus calls 0:03:00.280 --> 0:03:02.600 for revenue of eighty seven point two billion dollars and 0:03:02.639 --> 0:03:05.920 adjusted earnings per share of a dollar eighty seven. Tom 0:03:05.919 --> 0:03:07.760 Busby Bloomberg Radio. 0:03:07.760 --> 0:03:10.360 Thanks Tom, and speaking of oil crude oil on the 0:03:10.480 --> 0:03:13.200 rise this morning. This follows a report that Iran could 0:03:13.240 --> 0:03:17.440 be preparing an attack on israel axios setting Two Israeli 0:03:17.480 --> 0:03:21.640 sources say Tearan is planning a strike through militious that 0:03:21.720 --> 0:03:24.440 it backs in Iraq and as we check Brant the 0:03:24.480 --> 0:03:28.120 International benchmark up two point six percent. Seventy four is 0:03:28.120 --> 0:03:31.200 seventy five of barrel, nine mixed crews seventy one to 0:03:31.280 --> 0:03:33.800 twenty two of barrel. That's up a two point eight percent. 0:03:34.520 --> 0:03:36.960 Well, John Boeing shares they're also on the rise. They're 0:03:37.040 --> 0:03:39.920 up two point three percent. The planemaker and union leaders 0:03:40.000 --> 0:03:43.680 representing thirty three thousand striking workers reached a tentative agreement 0:03:43.800 --> 0:03:47.040 and a lengthy labor dispute that's been crippling the company's 0:03:47.080 --> 0:03:50.960 commercial airplane manufacturing. The agreement would boost wages by thirty 0:03:51.000 --> 0:03:53.800 eight percent over four years and give workers a twelve 0:03:53.880 --> 0:03:57.320 thousand dollars signing bonus if approved. The union says members 0:03:57.320 --> 0:03:59.560 will vote Monday on the new contract offer. 0:04:00.080 --> 0:04:02.520 Speaking of jobs, Karen, this morning, we're going to get 0:04:02.520 --> 0:04:05.160 the latest reading of the labor market with the October 0:04:05.240 --> 0:04:08.040 jobs report. Let's get a preview right now from Bloomberg's 0:04:08.040 --> 0:04:08.840 Michael McKee. 0:04:09.000 --> 0:04:11.880 The payroll's number is something of a black hole for October. 0:04:11.920 --> 0:04:14.560 The Boeing strike will take some workers out of the numbers, 0:04:14.840 --> 0:04:18.400 as will Hurricanes Helene and Milton, but nobody knows how 0:04:18.440 --> 0:04:21.599 many will fall out. Bloomberg Economics estimates it could be 0:04:21.640 --> 0:04:24.760 as many as one hundred fifty thousand, which would produce 0:04:24.800 --> 0:04:27.760 a negative payroll print for the first time since the pandemic. 0:04:28.400 --> 0:04:30.640 At the other end of the spectrum, Steve Vershudo of 0:04:30.760 --> 0:04:34.240 MIZZUO says one hundred and eighty thousand jobs, just over 0:04:34.279 --> 0:04:37.680 the average of the past six months. ADP on Wednesday 0:04:37.800 --> 0:04:41.320 reported finding two hundred and thirty three thousand new jobs. 0:04:41.920 --> 0:04:44.600 The mystery will be answered at eight thirty Eastern time. 0:04:45.120 --> 0:04:46.839 Michael McKee, Bloomberg Radio. 0:04:47.120 --> 0:04:49.480 Orry, Michael, thank you now to the final days of 0:04:49.560 --> 0:04:53.560 the twenty twenty four presidential election campaign. Vice President Kamala 0:04:53.600 --> 0:04:57.000 Harris is aiming to shore up votes across crucial swing states, 0:04:57.279 --> 0:05:00.760 with most polls indicating the race is a toss up. Yesterday, 0:05:00.760 --> 0:05:03.719 in Nevada, Harris seized on Donald Trump's remark that he'd 0:05:03.760 --> 0:05:06.880 protect women if elected, whether they like it or not. 0:05:07.400 --> 0:05:10.520 It is not the first time he has told us 0:05:10.839 --> 0:05:15.040 he does not believe women should have authority or agency 0:05:15.160 --> 0:05:16.360 over their own bodies. 0:05:16.760 --> 0:05:20.400 Kamala Harris further called Trump's comments about women very offensive. 0:05:20.520 --> 0:05:23.040 The Vice president will rally tonight in Milwaukee, shall be 0:05:23.080 --> 0:05:26.599 joined by several musical guests, including rapper Cardi b. It 0:05:26.680 --> 0:05:29.920 comes after Harris secure the endorsement of basketball star Lebron 0:05:30.000 --> 0:05:30.920 James yesterday. 0:05:31.360 --> 0:05:35.039 Donald Trump also heads to Wisconsin tonight, his campaigns touting 0:05:35.080 --> 0:05:38.320 a celebrity endorsement of its own. The YouTube star Jake 0:05:38.440 --> 0:05:41.560 pauls it looks to drum up support from young voters. 0:05:41.960 --> 0:05:45.400 The former president traveled across the Southwest yesterday attacking Harris 0:05:45.400 --> 0:05:48.400 while encouraging supporters to vote on Tuesday. 0:05:48.440 --> 0:05:50.880 You have to stand up and you have to tell 0:05:51.000 --> 0:05:53.160 Kamala that you've had enough. 0:05:53.240 --> 0:05:55.520 You can't take it anymore. She's horrible. 0:05:55.760 --> 0:05:59.039 But despite those comments, Donald Trump's still sowing doubt in 0:05:59.080 --> 0:06:02.799 the election results should he lose. He insists he's poised 0:06:02.800 --> 0:06:07.760 for a runaway victory barring alleged voter fraud. And it 0:06:07.760 --> 0:06:11.320 comes as Trump announced he's suing CBS Broadcasting, alleging the 0:06:11.400 --> 0:06:15.679 network engaged in election interference when it aired different versions 0:06:16.040 --> 0:06:18.840 of a sixty minutes interview with the Vice President Harris. 0:06:19.160 --> 0:06:22.040 A network spokesperson says the lawsuit lacks merit. 0:06:22.560 --> 0:06:25.240 Well John joined us for complete coverage of election results 0:06:25.279 --> 0:06:27.600 Tuesday night. It All cakes off at five pm Eastern 0:06:27.640 --> 0:06:30.040 with a special two hour edition of balance of power, 0:06:30.279 --> 0:06:33.160 following by Cost to Coast to Bloomberg Team coverage at 0:06:33.200 --> 0:06:37.160 seven pm. Get live election results and analysis with context 0:06:37.320 --> 0:06:41.440 Tuesday night on Bloomberg Radio, Television and the Bloomberg Podcast 0:06:41.640 --> 0:06:47.000 YouTube channel Time, and offer look at some of the 0:06:47.000 --> 0:06:49.440 other stories making news in New York and around the world. 0:06:49.440 --> 0:06:51.719 And for that we're joined by Bloomberg's Michael Barr. 0:06:51.880 --> 0:06:54.880 Michael, Good morning, Good morning Karen. Words of warning for 0:06:55.200 --> 0:06:58.799 North Korean troops training to fight for Russia inside Ukraine 0:06:59.279 --> 0:07:02.119 the US as those troops will be treated the same 0:07:02.279 --> 0:07:06.760 as Russians by the Ukrainian military. Secretary of State Antony 0:07:06.760 --> 0:07:09.760 Blincoln says around eight thousand North Korean troops and now 0:07:09.840 --> 0:07:12.160 station in the Kursk region of Russia. 0:07:12.320 --> 0:07:16.800 Russia has been training DPRK soldiers in artillery ua these 0:07:17.520 --> 0:07:22.160 basic infantry operations, including trench clearing, indicating that they fully 0:07:22.160 --> 0:07:25.520 intend to use these forces in frontline operations. 0:07:26.000 --> 0:07:29.320 Secretary Blincoln says they expect Russia to begin mobilizing these 0:07:29.360 --> 0:07:32.600 troops in the coming days. Crews are searching for bodies 0:07:32.640 --> 0:07:36.800 and stranded cars and sodden buildings as residents salvage what 0:07:36.880 --> 0:07:41.080 they can from ruined homes following monstrous flash floods in 0:07:41.120 --> 0:07:43.560 Spain that claimed at least one hundred and fifty eight lives. 0:07:43.840 --> 0:07:47.160 The death toll could rise more as search efforts continue. 0:07:47.160 --> 0:07:51.120 An unknown number remains missing. Since the twenty twenty election, 0:07:51.240 --> 0:07:56.120 the Cybersecurity Infrastructure Security Agency has been doing everything possible 0:07:56.120 --> 0:08:01.040 to reassure voters and correct any disinformation about the integrity 0:08:01.080 --> 0:08:05.480 of the American vote. Accusations of tampering and ballot dumping 0:08:05.560 --> 0:08:11.440 have made polling workers feel unsafe. CISA director Jen Easterly 0:08:11.480 --> 0:08:15.800 says seeing election workers subjected to threats, harassment, and in 0:08:15.800 --> 0:08:19.800 some cases forced to work behind bulletproof glass is very 0:08:19.800 --> 0:08:20.720 discouraging to her. 0:08:21.120 --> 0:08:25.520 They're not faceless bureaucrats. There are friends, there are neighbors. 0:08:25.720 --> 0:08:28.360 We see them in the community every single day, and 0:08:28.360 --> 0:08:31.400 they're not doing it for pay or for glory. They're 0:08:31.440 --> 0:08:34.559 doing it because they believe in our democracy and they 0:08:34.600 --> 0:08:35.880 deserve respect. 0:08:36.200 --> 0:08:39.920 Meanwhile, police in Portland, Oregon and Vancouver, Washington, are still 0:08:39.920 --> 0:08:43.960 looking for the suspect who set fires to voting drop boxes. 0:08:44.520 --> 0:08:46.840 A jury has been seated to hear the subway chocol 0:08:46.960 --> 0:08:50.120 case against Daniel Penny, with opening statements scheduled for today. 0:08:50.600 --> 0:08:53.439 The jury is compromised of seven women and five men, 0:08:53.480 --> 0:08:57.400 including four people of color. The defense use their challenges 0:08:57.440 --> 0:09:00.360 to strike at least ten people of color. Daniel Penny, 0:09:00.400 --> 0:09:04.640 a white marine veteran, pleads not guilty demandslaughter and criminally 0:09:04.720 --> 0:09:08.040 negligent homicide. He put a black man acting erratically in 0:09:08.080 --> 0:09:11.040 a New York City subway car into a fatal choke 0:09:11.080 --> 0:09:14.040 hold last year. Witnesses say the man, Jordan Neely, had 0:09:14.040 --> 0:09:17.400 been shouting and demanding money. Global news twenty four hours 0:09:17.440 --> 0:09:20.319 a day and whenever you want it with the Bloomberg News. Now, 0:09:20.400 --> 0:09:22.520 I'm Michael Barr. This is Bloomberg Karen. 0:09:22.720 --> 0:09:29.440 Sorry, Michael Barr, thank you. It is time now for 0:09:29.440 --> 0:09:32.360 the Bloomberg Sports Update, brought to you by Tri State Outye. 0:09:32.360 --> 0:09:34.960 Here's John Stamshower. John, good morning, Good morning Karen. 0:09:35.000 --> 0:09:38.160 Throughout October course, the New York baseball teams provided almost 0:09:38.240 --> 0:09:41.079 daily excitement of both their seasons ended with losses to 0:09:41.120 --> 0:09:44.160 the Dodgers. The NFL teams in New York not so good, 0:09:44.240 --> 0:09:46.160 both with two and six records begin Week nine, but 0:09:46.200 --> 0:09:48.760 on the final night of the month and met Live Stadium, 0:09:48.800 --> 0:09:50.559 the Jets got a much needed win and in their 0:09:50.600 --> 0:09:53.400 five game loser, three being in the Texans twenty one 0:09:53.400 --> 0:09:57.280 to thirteen, with Aaron Rodgers throwing three second half touchdown passes. 0:09:57.320 --> 0:09:59.640 The first two went to Garrett Wilson and both catches 0:09:59.640 --> 0:10:02.920 were made with one hand. The second one and especially 0:10:03.000 --> 0:10:05.520 highlight reel grab that came out of third and nineteen, 0:10:05.679 --> 0:10:07.760 was originally ruled out of bounds with James Don replay. 0:10:07.800 --> 0:10:09.360 Here was Wilson after the game. 0:10:09.800 --> 0:10:13.200 First one is just a drag route and Aaron, you know, 0:10:13.240 --> 0:10:14.760 comes to me late in progression and I got to 0:10:14.760 --> 0:10:17.600 make a play and luckily it blew wide open. After 0:10:17.600 --> 0:10:19.199 I caught the ball, Let's go to score a touchdown, 0:10:19.240 --> 0:10:22.640 you know, the second one, third down, and he trusted 0:10:22.679 --> 0:10:24.280 me to go and make a play again rights, he 0:10:24.320 --> 0:10:26.200 comes to me, it's it's kind of a down that 0:10:26.280 --> 0:10:29.160 no one expects to convert, and you know that can't 0:10:29.160 --> 0:10:30.680 be our mindset. We're the only ones I thought we 0:10:30.679 --> 0:10:31.280 were gonna convert. 0:10:31.280 --> 0:10:34.000 There also the first Jets touchdown for Devonte Adams. He 0:10:34.000 --> 0:10:36.520 came out of concussion protocol to score the final TV 0:10:36.640 --> 0:10:38.760 first win for the new Jets coach Jeff Obrick. The 0:10:38.840 --> 0:10:42.440 Houston qb CJ Stroud, just eleven of thirty two and 0:10:42.480 --> 0:10:44.719 six Giants are back in met Life on Sunday to 0:10:44.760 --> 0:10:47.160 play the six and two Washington Commanders big game of 0:10:47.200 --> 0:10:49.880 the NFC North six and one Detroit at five and 0:10:49.920 --> 0:10:52.840 two Green Bay. The Packers may have their QB Jordan 0:10:52.920 --> 0:10:55.360 Love despite leaving last week's game with injured groen, he 0:10:55.400 --> 0:10:58.120 was back at practice yesterday and Baltimore Lamar Jackson has 0:10:58.160 --> 0:11:00.040 not practiced yet this week. Said to be nurse I 0:11:00.040 --> 0:11:02.880 mean back in knee injuries. As for those Dodgers, they'll 0:11:02.880 --> 0:11:05.120 be honored today in La at parade a ceremony at 0:11:05.160 --> 0:11:07.880 Dodger Stadium. Freddie Freeman figures to get the biggest ovation, 0:11:07.960 --> 0:11:10.360 had one of the greatest World Series ever to spite 0:11:10.360 --> 0:11:13.959 an ankle injury, and now ESPN reporting Freeman's also playing 0:11:14.000 --> 0:11:17.040 with a broken rib. World Series ratings on Fox HIA 0:11:17.080 --> 0:11:20.800 since twenty seventeen averaging almost sixteen million viewers. Last year's 0:11:21.000 --> 0:11:24.360 World Series drew an average of nine million. John Stashedward 0:11:24.360 --> 0:11:26.040 Bloomberg Sports, Karen. 0:11:25.800 --> 0:11:26.520 And John. 0:11:28.520 --> 0:11:32.560 Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, 0:11:32.760 --> 0:11:35.640 and around the world on Bloomberg dot Com and the 0:11:35.679 --> 0:11:39.560 Bloomberg Business app. This is Bloomberg Daybreak. 0:11:40.280 --> 0:11:43.640 And I'm John Tucker in the Bloomberg Interactive Brokers studios 0:11:43.679 --> 0:11:46.320 this morning, where it is coming up on five thirteen 0:11:46.360 --> 0:11:49.280 on Wall Street, Apple and Amazon delivering earnings after the 0:11:49.320 --> 0:11:52.360 close up regular trading and pre Marcus shares of Apple 0:11:52.480 --> 0:11:55.320 they are down over one percent. Amazon shares are up 0:11:55.520 --> 0:11:59.079 over five percent. Let's break down the results now with 0:11:59.120 --> 0:12:02.040 Bloomberg's critic. Pretty good morning, thanks for being with us. 0:12:02.679 --> 0:12:07.240 With Apple sales, China regulatory concerns, where do you want 0:12:07.280 --> 0:12:07.600 to start? 0:12:08.040 --> 0:12:09.959 Yeah, let's start with the China piece, because that seems 0:12:09.960 --> 0:12:13.760 to be the biggest takeaway from the Apple story. Yes, 0:12:13.920 --> 0:12:16.760 iPhone revenue grew in every single region, and that's kind 0:12:16.760 --> 0:12:19.320 of the top line from Tim Cook's comments post earnings, 0:12:19.440 --> 0:12:21.720 But it's that China story that really matters here simply 0:12:21.720 --> 0:12:24.760 because that's their growth market. That's where Apple's trying to 0:12:24.760 --> 0:12:27.000 not only secure some of their supply chains, which they 0:12:27.000 --> 0:12:29.000 have partially moved to India, by the way, but that's 0:12:29.000 --> 0:12:31.560 also where they're trying to access their consumer at a 0:12:31.559 --> 0:12:33.680 time when they're also doing a little bit of the 0:12:33.720 --> 0:12:36.760 catch up trade on AI. Those both of those concepts 0:12:36.760 --> 0:12:39.439 are kind of married in what happened about six weeks, 0:12:39.760 --> 0:12:41.600 well almost two months ago now I'm thinking about it. 0:12:41.760 --> 0:12:44.240 When it came to the latest iPhone launch, I think 0:12:44.280 --> 0:12:47.600 it was early September, September ninth, if memory serves me right, 0:12:47.920 --> 0:12:51.080 when just twenty four hours later, Huawei launched their own 0:12:51.440 --> 0:12:53.600 kind of latest smartphone as well, And I think that 0:12:53.720 --> 0:12:56.480 speaks to this idea that the market share that Apple 0:12:56.559 --> 0:12:59.160 was trying to gain in China has kind of been 0:12:59.280 --> 0:13:03.280 cannibalized by the Whahwei rival and the Wahwei product, and 0:13:03.320 --> 0:13:06.360 that's really what's eating into these margins. Nevertheless, it looks 0:13:06.400 --> 0:13:08.720 like they are still selling their products. People are still 0:13:08.760 --> 0:13:11.040 buying it, and for that reason, you're not seeing Apple 0:13:11.040 --> 0:13:13.360 shares down this morning as much as perhaps expected. 0:13:13.960 --> 0:13:19.040 The Apple intelligence features is that captured in the September quarter. 0:13:19.440 --> 0:13:20.360 It's not quite yet. 0:13:20.400 --> 0:13:22.160 And remember this is one of the things that has 0:13:22.200 --> 0:13:24.000 been a little bit of a handicap for the stock, 0:13:24.120 --> 0:13:25.800 or an overhang for the stock, and that when you're 0:13:25.800 --> 0:13:29.760 comparing it to some of the other big tech names Microsoft, Amazon, 0:13:29.880 --> 0:13:32.800 Alphabet even though they are very different businesses from Apple, 0:13:33.120 --> 0:13:36.040 they are still trading higher on this kind of AI trade. 0:13:36.040 --> 0:13:39.480 Apple has been the notable laggard simply because they haven't 0:13:39.520 --> 0:13:44.079 been able to really kind of capitalize on that technology. 0:13:44.320 --> 0:13:47.400 And they've only just now released that AI technology in 0:13:47.440 --> 0:13:49.280 some of their latest updates for the iPhone. So it's 0:13:49.280 --> 0:13:51.160 not going to show up in this latest quarter, but 0:13:51.240 --> 0:13:52.320 it might in the next view. 0:13:52.720 --> 0:13:55.120 Apple Services, you got to explain to me what that 0:13:55.320 --> 0:13:57.520 is and how's it doing that end of the business. 0:13:57.760 --> 0:14:01.200 Oh, I love this, so Apple Services personal obsession. And 0:14:01.280 --> 0:14:03.760 the reason I say this, you've tapped into a rich area, 0:14:03.880 --> 0:14:07.559 John Tucker. I say this because this was really crucial 0:14:07.679 --> 0:14:11.760 data and crucial revenue for Apple during the pandemic. And 0:14:11.800 --> 0:14:14.160 Apple Services is basically every time you go into the 0:14:14.200 --> 0:14:16.840 Apple Store, you get your screen fixed, you get a 0:14:16.840 --> 0:14:19.480 Apple update, you need some help from kind of the 0:14:19.840 --> 0:14:22.560 genius bar that among several of the other kind of 0:14:22.560 --> 0:14:25.360 app functions comes under the umbrella of Apple Services and 0:14:25.440 --> 0:14:29.200 makes up about a third of their revenue. And during COVID, 0:14:29.280 --> 0:14:31.560 that's the part that really tainked because nobody was going 0:14:31.880 --> 0:14:34.200 into Apple. So from a macro signal, which is kind 0:14:34.200 --> 0:14:35.560 of how I like to look at it, it's very 0:14:35.560 --> 0:14:38.640 crucial for Apple's kind of mobility story because Apple, at 0:14:38.680 --> 0:14:40.600 the end of the day, it's a hardware company, but 0:14:40.640 --> 0:14:41.520 it wants to be more than that. 0:14:41.720 --> 0:14:44.480 Okay, let's move on to Amazon. Now, of six percent 0:14:44.520 --> 0:14:46.640 pre market I seem to be several pillars. You have 0:14:46.680 --> 0:14:51.040 e commerce, advertising, cloud services. How did they deliver? Get 0:14:51.040 --> 0:14:52.400 about a little bit more than. 0:14:52.360 --> 0:14:54.760 A minute, let's talk about AWS. I think that's the 0:14:55.080 --> 0:14:58.600 takeaway here. Remember I on Weber Amazon Web Services. This 0:14:58.720 --> 0:15:01.640 is the number two player in the cloud space, second 0:15:01.680 --> 0:15:04.360 to Microsoft's Asia. The top line you need to know, 0:15:04.560 --> 0:15:08.320 and one number is thirty eight percent. That's the margin 0:15:08.400 --> 0:15:11.200 of revenue that Amazon is making on their cloud unit, 0:15:11.480 --> 0:15:14.280 and it is the highest record margin they've made going 0:15:14.320 --> 0:15:17.320 all the way back to Data in twenty fourteen. By comparison, 0:15:18.000 --> 0:15:20.720 Alphabet's cloud unit is trying to keep up. They're trying 0:15:20.760 --> 0:15:23.680 to break into this and their margin is only seventeen percent. 0:15:23.720 --> 0:15:26.280 So that's where Amazon is really wowing investors. 0:15:26.360 --> 0:15:29.440 And they cut costs. It's not just cost cutting, it's 0:15:29.680 --> 0:15:33.240 kind of an effort I guess, to reallocate resources real quick. 0:15:33.720 --> 0:15:34.560 How did that work out? 0:15:34.960 --> 0:15:37.080 They're still in the process where they have a logistics 0:15:37.120 --> 0:15:40.120 unit that hasn't been doing as well, so they're in 0:15:40.160 --> 0:15:41.920 the works of it, but the e commerce results coming 0:15:41.920 --> 0:15:43.360 in stronger than expected as well. 0:15:43.440 --> 0:15:46.840 This is Bloomberg Daybreak, your morning podcast on the stories 0:15:46.920 --> 0:15:49.960 making news from Low Street to Washington and beyond. 0:15:50.320 --> 0:15:52.680 Look for us on your podcast feed by six am 0:15:52.760 --> 0:15:56.560 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:15:56.840 --> 0:15:59.640 You can also listen live each morning starting at five 0:15:59.680 --> 0:16:02.440 am Wall Street Time on Bloomberg eleven three to zero 0:16:02.440 --> 0:16:05.320 in New York, Bloomberg in ninety nine to one in Washington, 0:16:05.400 --> 0:16:09.280 Bloomberg ninety two nine in Boston, and nationwide on serious 0:16:09.520 --> 0:16:11.240 XM Channel one twenty one. 0:16:11.440 --> 0:16:14.200 Plus listen coast to coast on the Bloomberg Business app 0:16:14.280 --> 0:16:17.600 now with Apple CarPlay and Android auto interfaces. 0:16:17.840 --> 0:16:20.560 And don't forget to subscribe to Bloomberg and News Now. 0:16:20.680 --> 0:16:23.240 It's the latest news whenever you want it in five 0:16:23.280 --> 0:16:26.320 minutes or less. 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