Tech Stocks Slammed; New Bloomberg Presidential Poll

Good morning. 0:00:03.080 --> 0:00:05.920 I'm Nathan Hager and I'm Garen Moscow. Here are the 0:00:05.960 --> 0:00:07.440 stories we're following today. 0:00:07.960 --> 0:00:10.360 The drop in Nasdaq futures comes after a couple of 0:00:10.440 --> 0:00:13.320 key tech earnings reports after the bell a huge run 0:00:13.400 --> 0:00:16.920 up in a trio of stocks on optimism over artificial intelligence. 0:00:17.280 --> 0:00:20.840 It's turning into investor disappointment this morning. Let's start with 0:00:20.880 --> 0:00:23.759 Google parent Alphabet. Those shares are down more than five 0:00:23.760 --> 0:00:26.599 and a half percent in early trading. Softness in the 0:00:26.640 --> 0:00:29.800 company's core search advertising business is a focus, and we 0:00:29.840 --> 0:00:32.559 get more on that from Bloomberg Technology host ed Ludlow 0:00:32.600 --> 0:00:33.400 in San Francisco. 0:00:33.800 --> 0:00:37.800 One thesis or idea is that maybe the streets concern 0:00:37.880 --> 0:00:40.760 about weakness in the search business is they don't yet 0:00:40.800 --> 0:00:44.080 see tangible evidence that all of the R and D 0:00:44.159 --> 0:00:47.040 and work in generative AI and all of the product 0:00:47.040 --> 0:00:50.839 release is actually doing anything supportive to Google's core business. 0:00:51.040 --> 0:00:54.040 Compare and contrast that with Microsoft, where you see the 0:00:54.080 --> 0:00:57.480 contribution of AI across its kind of legacy and newer 0:00:57.840 --> 0:01:02.520 offerings and software suites. Aed Lovelife for bloombergis in San Francisco. 0:01:02.800 --> 0:01:05.400 All right, ed, thanks, So we're also seeing weakness in 0:01:05.480 --> 0:01:08.560 shares of Microsoft this morning that stock is down about 0:01:08.560 --> 0:01:12.600 one point six percent despite easily beating profit and revenue forecasts, 0:01:12.600 --> 0:01:15.120 and we get the latest from Bloomberg's John Tucker, John 0:01:15.360 --> 0:01:15.880 and Karen. 0:01:15.920 --> 0:01:19.880 Microsoft posted its strongest revenue growth since twenty twenty two, 0:01:20.440 --> 0:01:24.039 sixty two billion dollars. The profit easily beat estimates, coming 0:01:24.040 --> 0:01:27.080 in at two dollars ninety three cents a share. Artificial 0:01:27.120 --> 0:01:31.520 intelligence products are driving spending on cloud computing. Microsoft's as 0:01:31.560 --> 0:01:35.160 Your Cloud Services sales gain thirty percent, But as one 0:01:35.200 --> 0:01:38.560 analyst puts it, the company delivered a healthy set of results, 0:01:38.600 --> 0:01:41.360 but not as strong enough dose to appease the market. 0:01:41.680 --> 0:01:45.320 A loptimism for Microsoft's AI prospects last week cent to 0:01:45.400 --> 0:01:49.760 its market cap above three trillion dollars. John Tucker, Bloomberg Radio. 0:01:49.920 --> 0:01:52.040 All right, John, thanks for also seeing shares of chip 0:01:52.040 --> 0:01:55.920 maker Advanced micro Devices fall nearly seven percent. AMDs stock 0:01:56.000 --> 0:01:58.000 had been one of the favorite picks of investors looking 0:01:58.000 --> 0:02:00.720 for ways to bet on AI computing. The second biggest 0:02:00.760 --> 0:02:03.720 maker of computer processors, gave a week revenue forecast for 0:02:03.760 --> 0:02:04.560 the current period. 0:02:05.240 --> 0:02:09.240 Well, Nathan, while investors diggest earnings, they'll have another huge 0:02:09.240 --> 0:02:11.720 event on the calendar of this afternoon the FED decision 0:02:11.760 --> 0:02:14.440 and more importantly J Powell's news conference, we get more 0:02:14.440 --> 0:02:16.000 from Bloomberg's Michael McKee. 0:02:16.160 --> 0:02:19.120 Will the Fed offer any surprises today? Certainly not on 0:02:19.280 --> 0:02:21.440 interest rates. Fed funds stay in the five and a 0:02:21.520 --> 0:02:23.960 quarter to five and a half percent range, and it 0:02:24.080 --> 0:02:27.079 is likely they will change their tightening bias to something 0:02:27.080 --> 0:02:31.440 more neutral, dropping language about additional policy firming. That will 0:02:31.440 --> 0:02:34.120 put the burden of making news on Chairman J. 0:02:34.320 --> 0:02:34.760 Powell. 0:02:35.080 --> 0:02:37.359 The biggest news he could make would be guidance on 0:02:37.480 --> 0:02:41.880 rake cut timing, which is very unlikely. Finally, with tug 0:02:41.919 --> 0:02:45.440 in cheek, we ask, will Powell say the words soft landing? 0:02:45.919 --> 0:02:47.360 Michael McKee, Bloomberg Radio. 0:02:47.480 --> 0:02:49.560 All right, Mike, thanks and catch our special edition at 0:02:49.560 --> 0:02:52.560 Bloomberg Survey Lence, the Fed decides starting at one thirty 0:02:52.639 --> 0:02:55.840 pm Wall Street time on Bloomberg Radio and television. 0:02:56.440 --> 0:02:59.360 Let's turn to politics. Now, this just crossed the Bloomberg terminal. 0:02:59.400 --> 0:03:02.760 Karen a Brand Bloomberg News Morning Consult poll. It finds 0:03:02.800 --> 0:03:06.200 President Biden continues to trail former President Donald Trump in 0:03:06.320 --> 0:03:09.720 seven swing states. Six in ten voters in those states 0:03:09.720 --> 0:03:12.960 say the president bears responsibility for a surge in migrants 0:03:12.960 --> 0:03:14.480 at the US Mexico border. 0:03:14.639 --> 0:03:18.040 Bloomberg's Amy Morris has the numbers. The monthly survey serves 0:03:18.040 --> 0:03:20.799 as a warning for Biden, who lags Trump forty two 0:03:20.800 --> 0:03:23.440 to forty eight percent across all seven swing states in 0:03:23.440 --> 0:03:25.680 a head to head matchup, But when a third party 0:03:25.720 --> 0:03:29.040 candidate is added, Trump's lead grows by another nine percentage 0:03:29.040 --> 0:03:31.799 points and voter's main concern is the economy by far, 0:03:32.080 --> 0:03:36.240 but now more respondents also call immigration their most important issue. 0:03:36.360 --> 0:03:39.440 The gap between those two issues is narrowing, which suggests 0:03:39.480 --> 0:03:41.880 the Republican efforts to put immigration at the center of 0:03:41.880 --> 0:03:45.280 the campaign are working, and the trust gap is growing 0:03:45.400 --> 0:03:48.040 by a twenty two point margin. Swing state voters say 0:03:48.040 --> 0:03:51.400 they trust Trump over Biden to handle immigration. In Washington, 0:03:51.400 --> 0:03:53.760 Amy Morris Bloomberg Radio, All right, Amy. 0:03:53.520 --> 0:03:55.520 Thank you well. From the White House to Congress, the 0:03:55.560 --> 0:03:58.680 House Homeland Security Committee has voted along party lines to 0:03:58.720 --> 0:04:02.560 move toward in peaching Homelands and Security Secretary Alejandro Majorcis 0:04:02.560 --> 0:04:06.560 over problems at the border. Republican Marjorie Taylor Green has 0:04:06.600 --> 0:04:10.000 been pushing this since last year. The facts and the 0:04:10.120 --> 0:04:12.560 data and the statistics do not lie. 0:04:13.040 --> 0:04:18.279 Secretary Mayorcis is willfully breaking federal immigration laws. 0:04:18.480 --> 0:04:21.680 Congressoman Marjorie Taylor Green spoke from the House floor, and 0:04:21.720 --> 0:04:25.520 Democrats here, Republicans are not providing the resources to enforce 0:04:25.560 --> 0:04:25.960 the law. 0:04:26.080 --> 0:04:28.520 All right, let's turn back to the markets and company news. 0:04:28.600 --> 0:04:32.000 Karen Walmart has announced a three for one stock split, 0:04:32.040 --> 0:04:34.120 and we get the story from Bloomberg's Charlie Pellett. 0:04:34.279 --> 0:04:36.680 The company says a lower price will help more of 0:04:36.720 --> 0:04:41.279 its employees buy shares. CEO Doug McMillan said, quote, Sam 0:04:41.320 --> 0:04:44.039 Walton believed it was important to keep our share price 0:04:44.080 --> 0:04:48.160 in a range where purchasing whole shares rather than fractions, 0:04:48.480 --> 0:04:52.200 was accessible to all of our associates. The world's largest 0:04:52.200 --> 0:04:56.440 retailer has an existing stock purchase program for employees, through 0:04:56.480 --> 0:05:00.440 which they buy stock directly and the company matches fifteen 0:05:00.480 --> 0:05:03.880 percent of the purchase up to eighteen hundred dollars a year. 0:05:04.279 --> 0:05:07.360 In New York, Charlie Bloomberg Radio, All right. 0:05:07.320 --> 0:05:10.400 Charlie, thanks Lelon Muss fifty five billion dollar Tesla pay 0:05:10.480 --> 0:05:13.480 package has been struck down by a Delaware judge following 0:05:13.480 --> 0:05:17.159 a shareholder challenge. If the decision survives appeal, it could 0:05:17.240 --> 0:05:19.839 threaten the entrepreneur's fortune and throw the fate of his 0:05:19.920 --> 0:05:23.200 companies into question. Mus twenty eighteen award was the largest 0:05:23.200 --> 0:05:26.680 compensation package in history. Tesla's board will now need to 0:05:26.720 --> 0:05:29.560 agree on new payment terms for their CEO. 0:05:29.440 --> 0:05:31.960 And Karin and other wealthy executives. In the news, Bloomberg 0:05:32.000 --> 0:05:34.640 News has learned media mogul Byron Allens made a fourteen 0:05:34.680 --> 0:05:37.640 point three billion dollar offer for all outstanding shares of 0:05:37.680 --> 0:05:40.520 Paramount Global. Paramount is one of the crown jewels in 0:05:40.520 --> 0:05:43.719 a global media empire controlled by the Redstone family. Shares 0:05:43.720 --> 0:05:47.240 of Paramount are up nearly twenty one percent in early training. 0:05:47.240 --> 0:05:50.200 And Bloomberg News has learned Carlisle Group co founder David 0:05:50.240 --> 0:05:52.960 Rubinstein and a consortium of investors have agreed to buy 0:05:52.960 --> 0:05:56.120 the Baltimore Orioles baseball team from the Angelos family for 0:05:56.200 --> 0:06:03.240 one point seventy three billion dollars. Time now for a 0:06:03.240 --> 0:06:05.240 look at some of the other stories making news around 0:06:05.279 --> 0:06:07.320 the world, and for that were joined by Bloomberg's Amy 0:06:07.360 --> 0:06:08.000 Morris Samy. 0:06:08.040 --> 0:06:09.800 Good morning, Good morning, Karen. 0:06:09.880 --> 0:06:13.400 Some are calling Israel's secret counter terrorism operation at a 0:06:13.400 --> 0:06:16.839 hospital in the West Bank a potential war crime. Members 0:06:16.880 --> 0:06:20.320 of the Israeli special forces disguised themselves as hospital staff 0:06:20.480 --> 0:06:23.200 to sneak into a hospital room and then shoot three 0:06:23.200 --> 0:06:27.320 Palestinian fighters who Israel says we're planning more attacks. Tofts 0:06:27.440 --> 0:06:31.599 University professor of international law Tom Danenbaum says these kinds 0:06:31.600 --> 0:06:33.920 of tactics are generally out of bounds. 0:06:34.360 --> 0:06:38.400 Even if they were clear targets clearly misusing the hospital, 0:06:38.640 --> 0:06:42.200 it would still be a war crime to present as 0:06:42.240 --> 0:06:45.320 a civilian or a medic to get proximate to them. 0:06:45.400 --> 0:06:48.600 The Palestinian Foreign Ministry posted on social media calling the 0:06:48.680 --> 0:06:52.800 killings heinous and a crime against humanity. Tunnels under Gaza 0:06:52.839 --> 0:06:55.440 are about to be flooded with water by the Israeli 0:06:55.440 --> 0:06:58.400 military to keep the Palestinian militant group of MAAS from 0:06:58.480 --> 0:07:01.359 using the estimated three hundred fifty miles of tunnels that 0:07:01.360 --> 0:07:04.679 they built. The plan has drawn criticism over potential dangers 0:07:04.720 --> 0:07:07.360 to nearly one hundred and thirty hostages still being held, 0:07:07.720 --> 0:07:11.720 and over damage to drinking water and sewage systems. President 0:07:11.760 --> 0:07:13.840 Biden says he has decided how to respond to the 0:07:13.920 --> 0:07:16.360 killing of three US service members and a drone attack 0:07:16.400 --> 0:07:19.120 in Jordan this week, but he also says he doesn't 0:07:19.120 --> 0:07:21.520 want to expand the war in the Middle East. Deputy 0:07:21.520 --> 0:07:24.160 depending on Press Secretary Sabrina Singh, we. 0:07:24.080 --> 0:07:25.960 Don't want to see escalation in the region. We don't 0:07:26.000 --> 0:07:28.360 seek a wider regional war, and that's exactly what the 0:07:28.360 --> 0:07:32.120 President said. However, we're not going to sit back and 0:07:32.240 --> 0:07:35.520 let these attacks go unanswered. We are going to respond. 0:07:35.760 --> 0:07:38.760 That's not escalation, that's proportionate. We believe we have the 0:07:38.840 --> 0:07:39.640 right to respond. 0:07:39.720 --> 0:07:42.600 Iran has now signals it's prepared to hit back against 0:07:42.640 --> 0:07:45.480 any US strike on its soil or assets abroad. The 0:07:45.560 --> 0:07:48.239 largest social media companies are going to face some questions 0:07:48.280 --> 0:07:52.600 today about protecting children online. Bloomberg's Ed Baxter with that story. 0:07:52.760 --> 0:07:56.040 The heads of Meta, Snapchat, discoord X, and TikTok in 0:07:56.040 --> 0:07:58.600 front of the Senate Judiciary Committee. The name of the 0:07:58.640 --> 0:08:03.120 herring is big Tech, the online child sexual exploitation crisis. 0:08:03.480 --> 0:08:06.120 But Senator Richard Bloomenthal says it will get into other 0:08:06.160 --> 0:08:06.920 areas as well. 0:08:07.000 --> 0:08:12.440 We're really interfering with a cash cow that they are 0:08:12.680 --> 0:08:15.000 very reluctant to modify. 0:08:14.840 --> 0:08:16.640 And says it will be uncomfortable. 0:08:16.800 --> 0:08:18.600 They need to be put on the spot. 0:08:18.280 --> 0:08:23.280 And Bloomenthal says a change of the company's priorities at Baxter, Bloomberg. 0:08:22.840 --> 0:08:27.280 Radio well more news coming up, global news twenty four 0:08:27.280 --> 0:08:29.040 hours a day and whenever you want it. With Bloomberg 0:08:29.040 --> 0:08:32.080 News Now, I'm Amy Morris and this is Bloomberg Karen 0:08:32.280 --> 0:08:32.800 gret Amy. 0:08:32.800 --> 0:08:34.560 Thank you. We do bring you news throughout the day 0:08:34.679 --> 0:08:37.320 right here on Bloomberg Radio. But now you can get 0:08:37.320 --> 0:08:40.000 the latest news on demand, and that means whenever you 0:08:40.320 --> 0:08:43.199 want it. Just subscribe to Bloomberg News Now and you 0:08:43.240 --> 0:08:44.920 can get the latest headlines right at the click of 0:08:44.960 --> 0:08:47.680 a button. You can get informed right on your schedule. 0:08:47.720 --> 0:08:50.840 You can listen and subscribe to Bloomberg News Now on 0:08:50.880 --> 0:08:54.800 the Bloomberg Business app, Bloomberg dot com plus Apple, Spotify, 0:08:55.320 --> 0:09:02.000 and anywhere else you get your podcasts. Time now for 0:09:02.040 --> 0:09:05.880 the Bloomberg Sports Update. Here's John Stashauer, John Karen. 0:09:05.640 --> 0:09:07.560 A couple of the big upsets in college basketball. The 0:09:07.559 --> 0:09:10.559 biggest one was in Atlanta. Georgia Tech came in two 0:09:10.679 --> 0:09:14.400 and seven and acc played North Carolina was nine and oho, 0:09:14.480 --> 0:09:16.800 but naighth and George, a freshman for the All Jackets, 0:09:16.800 --> 0:09:19.880 scored with seven seconds left and Georgia Tech stormed the 0:09:19.920 --> 0:09:23.120 court after upsetting North Carolina seventy four to seventy three. 0:09:23.200 --> 0:09:26.439 The Triels are ranked third. Tennessee is ranked fifth. Lost 0:09:26.480 --> 0:09:29.720 at home to South Carolina sixty three fifty nine. Fifth 0:09:29.720 --> 0:09:33.040 straight win for Marquette atop the Big East, winning at 0:09:33.280 --> 0:09:36.840 Villanova eighty five to eighty. Michigan State beat Michigan eighty 0:09:36.880 --> 0:09:40.600 one sixty two. For longtime Spartans coach Tom Izzo, that's 0:09:40.600 --> 0:09:43.240 career winning number seven hundred. He gets it on his 0:09:43.360 --> 0:09:46.480 sixty ninth birthday. Southeast go to twenty two and two 0:09:46.520 --> 0:09:49.600 at home, got thirty points from Jason Tatum, beat Indiana 0:09:49.760 --> 0:09:53.200 one twenty nine, one twenty four. The Warriors top the 0:09:53.320 --> 0:09:56.160 Sixers one nineteen, one oh seven, and Steph Curry went 0:09:56.200 --> 0:09:59.320 for thirty seven made eight three pointers. Joel Embi, who 0:09:59.360 --> 0:10:02.040 had missed a the game's, returned for the Sixers. 0:10:01.600 --> 0:10:03.920 But then had to lead with a knee injury. 0:10:03.960 --> 0:10:07.720 He's headed for an MRI. Ben Johnson, a hot assistant 0:10:07.720 --> 0:10:11.200 in the NFL, spoke with both Seattle and Washington. He 0:10:11.280 --> 0:10:14.000 was considered the favorite to get the commander's job, but 0:10:14.080 --> 0:10:17.520 then he removed himself from consideration. He's only thirty seven 0:10:17.559 --> 0:10:19.560 fields he'll get a job at some point and he's 0:10:19.559 --> 0:10:23.840 decided to stay in Detroit, whereas where he's the offensive coordinator. 0:10:24.080 --> 0:10:27.240 Arthur Smith fired as the coach in Atlanta after three years, 0:10:27.679 --> 0:10:30.359 now taking over the offense in Pittsburgh. 0:10:30.440 --> 0:10:32.600 He used to coach the offense in Tennessee. 0:10:32.960 --> 0:10:35.840 John Stashenewer Bloomberg Sports. 0:10:37.559 --> 0:10:40.560 From coast to coast, from New York to San Francisco, 0:10:40.880 --> 0:10:45.959 Boston to Washington, DC, nationwide on siriusxam, the Bloomberg Business 0:10:45.960 --> 0:10:51.360 app in Bloomberg dot com. This is Bloomberg Daybreak. Good morning, 0:10:51.440 --> 0:10:52.320 I'm Nathan Hager. 0:10:52.360 --> 0:10:55.280 The kickoff of big tech earnings is looking like a 0:10:55.320 --> 0:10:59.240 bit of a disappointment so far for investors. Both Microsoft 0:10:59.280 --> 0:11:02.240 and Google parent Alphabet delivered quarterly results that beat Wall 0:11:02.240 --> 0:11:07.160 Street expectations as a whole, but expectations around artificial intelligence 0:11:07.440 --> 0:11:10.640 might not have hit the bar for both these tech giants. 0:11:10.800 --> 0:11:13.080 Let's bring in Alex Web for more on the tech story. 0:11:13.120 --> 0:11:16.520 Alex covers all things tech for us at Bloomberg. Alex, 0:11:16.520 --> 0:11:18.679 thanks for being here. Is that the story was ai 0:11:18.840 --> 0:11:20.680 price to perfection for these companies. 0:11:21.640 --> 0:11:25.480 Yes, expectations are exceptionally high. Microsoft's trading at thirty six 0:11:25.520 --> 0:11:29.040 times it's forward earnings. That means that in order to 0:11:29.080 --> 0:11:31.800 meet expectations, you really have to beat them, and beat 0:11:31.800 --> 0:11:37.600 them by a generous margin. The irony is that AI 0:11:37.720 --> 0:11:41.600 did provide a six percentage point tailwind to Microsoft. Don't 0:11:41.600 --> 0:11:44.080 forget AI right now is very much a cloud product. 0:11:44.160 --> 0:11:48.080 It's about getting companies to build their AI functionality on 0:11:48.280 --> 0:11:52.240 Microsoft Azure in the case of Microsoft. But some investors 0:11:52.240 --> 0:11:56.160 were saying, actually that six percentage point growth concealed other 0:11:56.400 --> 0:11:59.360 or offset other weakness in that cloud business and was 0:11:59.360 --> 0:12:01.520 one reason weren't too happy about it, and you saw 0:12:01.559 --> 0:12:03.240 a bit of a set off in the shares. There's 0:12:03.240 --> 0:12:05.319 also a little bit of profit taking in these moments 0:12:05.320 --> 0:12:10.640 when you don't see blockbuster numbers coming out. Google enjoyed 0:12:10.640 --> 0:12:12.960 again some boost from AI with its cloud business. It's 0:12:13.000 --> 0:12:16.880 cloud business just posted its first full fiscal year of profits. 0:12:17.800 --> 0:12:20.160 But actually for them it's really about the ads where 0:12:20.200 --> 0:12:22.920 the ads business was a little bit weaker than anticipated. 0:12:23.240 --> 0:12:25.960 That still generates the lion's share of its revenue, and 0:12:26.000 --> 0:12:28.959 of course is providing the cash flow to expand into 0:12:29.040 --> 0:12:30.760 things like AI and of course the cloud. 0:12:31.040 --> 0:12:33.280 So then I guess that would raise the question about 0:12:33.360 --> 0:12:38.240 whether the Google's parent company Alphabet will have the resources 0:12:38.280 --> 0:12:40.960 to kind of play catch up with Microsoft and some 0:12:41.000 --> 0:12:42.920 of the other players in the AI space. Is that 0:12:42.960 --> 0:12:43.880 the concern here. 0:12:44.520 --> 0:12:47.240 Well, it's yeah. I mean, it's just more that there's 0:12:47.320 --> 0:12:50.199 less less money to go around. Really, Google was actually 0:12:50.240 --> 0:12:52.160 in a pretty good place when it comes to AI 0:12:52.320 --> 0:12:54.280 if you think about it, not just in terms of Microsoft, 0:12:54.280 --> 0:12:57.520 but in terms of Amazon. Right Amazon's really the leading 0:12:57.600 --> 0:13:01.280 player in the cloud. If anything, people a little bit 0:13:01.360 --> 0:13:03.760 investors are a little bit worried about what Amazon has 0:13:03.800 --> 0:13:06.240 to offer in the space, and it might be one 0:13:06.280 --> 0:13:08.760 reason why Google is gaining a little bit of ground. 0:13:09.640 --> 0:13:12.800 But it still has, you know, very deep pockets, with 0:13:13.000 --> 0:13:17.720 cash flow of sixty nine billion dollars in the in 0:13:17.760 --> 0:13:21.280 the most recent fiscal year. Of course, investors are always 0:13:21.280 --> 0:13:22.680 going to be concerned about how much of that cash 0:13:22.679 --> 0:13:24.600 flow is going to be reinvested. It looks like there's 0:13:24.640 --> 0:13:27.400 going to be still quite a lot because fundamentally the 0:13:27.400 --> 0:13:31.080 big spending, corporate spending on AI isn't coming through yet. 0:13:31.360 --> 0:13:34.160 They've done a lot of the preparation. The likes of Google, Microsoft, 0:13:34.240 --> 0:13:37.080 and Amazon, they've invested, they're invested in, and they have 0:13:37.200 --> 0:13:39.840 invested in and are investing in data centers with the 0:13:39.960 --> 0:13:42.160 sort of chip sets from Nvidia that will help fuel 0:13:42.200 --> 0:13:46.199 this technology. But the big spending from Fortune five hundred 0:13:46.200 --> 0:13:48.160 companies hasn't really started with Gusta yet. 0:13:48.360 --> 0:13:51.200 Yeah, we've talked about the softness and the core ad 0:13:51.200 --> 0:13:56.160 business for Google. There's softness in Microsoft's stock this morning, 0:13:56.200 --> 0:14:00.560 despite the company delivering its best revenue growth since twenty 0:14:00.640 --> 0:14:04.600 twenty two. What's the issue for Microsoft investors? 0:14:05.760 --> 0:14:07.400 I mean, you do if you see a lot with 0:14:07.440 --> 0:14:09.560 Apple as well, that when they have a quarter that's 0:14:09.600 --> 0:14:12.680 you know, fine and maybe slightly beats expectations, even you 0:14:12.760 --> 0:14:15.160 then see your sell off in the shares because you 0:14:15.200 --> 0:14:17.840 know they've been on such a tear recently and they've 0:14:17.880 --> 0:14:22.640 been you know, tipped it into that that crown or 0:14:22.720 --> 0:14:25.280 now has that crown of being the world's most valuable company. 0:14:25.440 --> 0:14:29.880 So the any sign of a little bit of weakness, 0:14:29.920 --> 0:14:33.000 which is kind of really all you're seeing with Microsoft, 0:14:33.080 --> 0:14:36.480 a little bit of weakness is a reason to do that, 0:14:37.120 --> 0:14:39.520 not the sort. And they've also maybe held back a 0:14:39.560 --> 0:14:41.920 little bit on the bullishness for the forecast for this 0:14:42.040 --> 0:14:44.480 year when it comes to the growth of AI. That's 0:14:44.920 --> 0:14:48.720 from an investor relations perspective, probably quite canny given how 0:14:48.800 --> 0:14:51.880 high investor how high expectations already are. If you can 0:14:51.920 --> 0:14:54.320 temper that a little bit, it gives you more room 0:14:54.360 --> 0:14:56.240 to play with heading into the next fiscal year. 0:14:56.640 --> 0:14:58.400 Well, we got John Alex, I've got to get your 0:14:58.480 --> 0:15:03.080 reaction to this judgment from the Delaware Chancery Court avoiding 0:15:03.240 --> 0:15:08.480 Elon Musk's fifty five billion dollar compensation package. What's your 0:15:08.520 --> 0:15:09.040 take on it. 0:15:10.640 --> 0:15:13.320 It's interesting because you know, a lot of the critics 0:15:13.320 --> 0:15:15.080 of el Musk will say, well, this is the news 0:15:15.880 --> 0:15:20.880 Delaware regulators essentially, or the Delaware system doing its job 0:15:20.960 --> 0:15:24.760 properly and protecting investors. The upshot might actually be that 0:15:24.840 --> 0:15:27.120 investors end up with a little bit less protection if 0:15:27.120 --> 0:15:31.640 he decides to, you know, move the incorporation to somewhere 0:15:31.640 --> 0:15:35.640 like Texas or Nevada where the protections for shareholders are 0:15:35.640 --> 0:15:38.800 perceived as not being quite as stringent. That's what he's 0:15:38.800 --> 0:15:41.480 already done with Twitter or x if you prefer so. 0:15:43.240 --> 0:15:45.880 It looks as though he won't get access to all 0:15:46.360 --> 0:15:47.800 that money. I think it's mostly in the form of 0:15:47.800 --> 0:15:53.960 equity that doesn't necessarily have big, meaningful implications for the 0:15:54.040 --> 0:15:57.160 operations of Tesla. Maybe a little bit around the edges 0:15:57.200 --> 0:16:00.480 for X given the capital requirements at that company and 0:16:00.520 --> 0:16:03.840 for some of the other portfolio companies, but ultimately it's 0:16:03.880 --> 0:16:05.040 really about Musk himself. 0:16:06.520 --> 0:16:09.120 Lots to talk about in the tech space, certainly this morning. 0:16:09.560 --> 0:16:13.160 Thanks for the roundup as we kick off big tech earnings, 0:16:13.200 --> 0:16:15.640 and I'll look ahead toward the end of the week 0:16:16.160 --> 0:16:19.400 to Apple, Amazon and Meta Platform, so I'm sure we'll 0:16:19.440 --> 0:16:21.560 be checking back in with you as well. Alex, thanks 0:16:21.560 --> 0:16:23.920 again for being here. Alex Webb a covering tech for 0:16:24.040 --> 0:16:28.560 us for Bloomberg News. Now let's pivot to politics, because 0:16:28.600 --> 0:16:32.000 we did get a brand new Bloomberg News Morning Consult 0:16:32.080 --> 0:16:35.840 poll of the seven key swing states that could be 0:16:35.880 --> 0:16:41.120 pivotabal to deciding this election, and it raises some interesting 0:16:41.160 --> 0:16:44.280 new issues for some of those voters. Let's bring in 0:16:44.280 --> 0:16:48.720 Bloomberg News national political reporter Gregory Cordy to break down 0:16:48.720 --> 0:16:52.960 what we've learned from this latest iteration of the Bloomberg 0:16:52.960 --> 0:16:58.600 News Morning Consult Swing state poll. What did we find, Gregory, Yeah. 0:16:58.480 --> 0:17:00.440 Well, as we've talked about, this is a race that 0:17:00.560 --> 0:17:05.080 really we haven't had much movement in terms of the cannons, 0:17:05.119 --> 0:17:07.639 in terms of the issue environment, except that this month, 0:17:07.680 --> 0:17:11.560 we are starting to see a shift in what voters 0:17:11.560 --> 0:17:14.359 are concerned about. It's a small shift, but it's perceptible, 0:17:15.000 --> 0:17:20.600 and it's away from the economy and towards immigration as 0:17:20.680 --> 0:17:22.680 an issue. Now, the economy is still far and away 0:17:22.680 --> 0:17:25.480 the number one issue among voters, but as some of 0:17:25.520 --> 0:17:29.120 these economic indicators that we're looking at, and especially inflation, 0:17:30.080 --> 0:17:32.920 starts to ease a little bit, that creates some room 0:17:33.040 --> 0:17:36.360 for voters to worry about some other things. And by 0:17:36.400 --> 0:17:38.840 and Marge, what they're worried about is the crisis at 0:17:38.880 --> 0:17:42.440 the US Mexico border. And of course that's an issue 0:17:42.480 --> 0:17:47.400 that former President Donald Trump does well in with voters. 0:17:47.400 --> 0:17:50.439 By a twenty two point margin, voters say they trust 0:17:50.440 --> 0:17:54.960 Trump over Biden about that on that issue, and by 0:17:55.040 --> 0:17:57.119 about a two to one margin they say they blame 0:17:57.200 --> 0:18:00.920 Biden for what's going on there. So this is not 0:18:01.119 --> 0:18:03.239 this is a shift in the issue environment, but not 0:18:03.280 --> 0:18:07.879 one that necessarily benefits President Biden. And so overall, what 0:18:07.920 --> 0:18:12.600 we're seeing is the race remains with about a six 0:18:12.640 --> 0:18:16.560 point lead by Donald Trump across the seven swing states 0:18:17.320 --> 0:18:18.120 that we're pulling in. 0:18:18.880 --> 0:18:22.919 So does that mean that the former president is widening 0:18:22.920 --> 0:18:27.080 his lead against the current president based on this issue 0:18:27.119 --> 0:18:30.040 that's emerging is more of a concern for voters immigration. 0:18:31.320 --> 0:18:34.560 Months a month, we're seeing about a one point increase 0:18:34.600 --> 0:18:36.960 in Trump's lead, but we should say that that's within 0:18:37.080 --> 0:18:41.280 the margin of errors, so it's not necessarily a perceptible lead. 0:18:41.359 --> 0:18:46.000 But when we see this lead month over month happening, 0:18:46.080 --> 0:18:48.600 and this is also consistent with other public polling out there, 0:18:48.640 --> 0:18:51.240 I think we can pretty much say confidently that President 0:18:51.280 --> 0:18:54.080 Trump is leading in this race both nationally and in 0:18:54.160 --> 0:18:57.080 these swing states are most likely to decide the election. 0:18:57.480 --> 0:19:01.000 What does this poll say about what vote perceive as 0:19:01.200 --> 0:19:03.479 driving the problems at the border. 0:19:04.640 --> 0:19:07.800 Yeah, it's interesting because voters have a pretty sophisticated view 0:19:07.840 --> 0:19:11.760 of this. Actually, they while about sixty percent of them 0:19:12.359 --> 0:19:16.720 blame Joe Biden form, they also understand that there's a 0:19:16.760 --> 0:19:20.960 lot of other geopolitical factors at play here, and so 0:19:21.560 --> 0:19:26.840 corruption in other countries, and the economic environment in Central 0:19:26.880 --> 0:19:30.960 and Latin America, war famine. They understand that all those 0:19:31.000 --> 0:19:35.399 are driving this mass migration of people northward through the 0:19:35.440 --> 0:19:40.000 gap through Mexico into our border. But when they look 0:19:40.040 --> 0:19:45.360 at the domestic political situation, Biden and Democrats get mostly blamey. 0:19:45.960 --> 0:19:48.680 Now this is coming, of course, at a time when 0:19:48.880 --> 0:19:52.399 the Senate is negotiating a border security bill. President Biden 0:19:52.520 --> 0:19:56.280 is trying to move that forward, and House Republicans are 0:19:56.320 --> 0:19:59.600 now moving to impeach Homeland Security Secretary May orgis over 0:20:00.280 --> 0:20:03.359 at the border. How could that potentially shape voter perceptions 0:20:03.359 --> 0:20:04.280 of this issue. 0:20:05.119 --> 0:20:08.159 Yeah, President Biden is very much trying to shift the 0:20:08.160 --> 0:20:11.480 conversation on this by putting forward a proposal to say, hey, look, 0:20:11.760 --> 0:20:15.720 give me the emergency authority, give me the spending uh, 0:20:15.760 --> 0:20:18.600 and I will close the border and we will we 0:20:18.640 --> 0:20:21.879 will address this crisis. Now, we should say that this 0:20:21.960 --> 0:20:25.680 Paul was in the field before some of these latest 0:20:25.840 --> 0:20:29.720 back and forth machinations and negotiations, and so we're we 0:20:30.040 --> 0:20:32.760 just started to see that in this Poul while I 0:20:32.760 --> 0:20:36.080 was in the field where especially Democrats were giving Biden 0:20:36.280 --> 0:20:41.440 credit for making those overtures. Obviously Republicans aren't quite ready 0:20:41.440 --> 0:20:43.920 to give him credit for that yet. But as this 0:20:44.080 --> 0:20:44.960 issue goes. 0:20:44.760 --> 0:20:45.119 On, and. 0:20:47.600 --> 0:20:49.920 Yeah, Biden continues to try to flip the script on 0:20:50.359 --> 0:20:54.679 Republicans because look it's now former President Trump who's trying 0:20:54.720 --> 0:20:56.720 to quash any deal on the border. He says it's 0:20:57.160 --> 0:20:59.480 a no deal on the border is better than a 0:20:59.480 --> 0:21:02.679 bad deal, and it's put Democrats in the position of 0:21:02.720 --> 0:21:04.560 trying to go on the un offensive on the issue. 0:21:05.119 --> 0:21:07.280 In our last thirty seconds here, Greg gree, I know this. 0:21:07.320 --> 0:21:10.600 Pole also asked about former President Donald Trump's legal issues 0:21:10.680 --> 0:21:12.320 as well. What did we find there. 0:21:13.440 --> 0:21:16.160 Yeah, fifty three percent of Slang State voters said they 0:21:16.200 --> 0:21:20.080 would not vote for Trump if he is convicted in 0:21:20.160 --> 0:21:22.879 one of these four criminal cases he's been indicted in. Now, 0:21:22.920 --> 0:21:25.800 of course many of them wouldn't have voted for him 0:21:25.840 --> 0:21:28.239 in the first place, but that is a majority. And 0:21:28.359 --> 0:21:31.280 what that means is even some Republicans say that they 0:21:31.320 --> 0:21:33.919 would no longer support him if he's convicted, and of 0:21:33.960 --> 0:21:36.280 course if he's sent in the prison, even fewer would 0:21:36.280 --> 0:21:39.480 continue to support him. So that's the area of vulnerability 0:21:39.840 --> 0:21:43.080 for President Trump as he goes and tries to navigate 0:21:43.440 --> 0:21:45.480 all of these criminal cases he's facing this year. 0:21:48.480 --> 0:21:51.520 This is Bloomberg Daybreak Today, your morning brief on the 0:21:51.560 --> 0:21:55.119 story's making news from Wall Street to Washington and beyond. 0:21:55.280 --> 0:21:58.040 Look for us on your podcast feed at six am 0:21:58.119 --> 0:22:01.800 Eastern each morning, on Apple, Spotify, and anywhere else you 0:22:01.840 --> 0:22:02.880 get your podcasts. 0:22:03.119 --> 0:22:05.840 You can also listen live each morning starting at five 0:22:05.880 --> 0:22:08.520 am Wall Street Time, on Bloomberg eleven three to zero 0:22:08.520 --> 0:22:11.960 in New York, Bloomberg ninety nine one in Washington, Bloomberg 0:22:12.000 --> 0:22:15.000 one oh sixty one in Boston, and Bloomberg ninety sixty 0:22:15.160 --> 0:22:16.119 in San Francisco. 0:22:16.480 --> 0:22:19.640 Our flagship New York station is also available on your 0:22:19.680 --> 0:22:25.119 Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus. 0:22:25.160 --> 0:22:28.600 Listen coast to coast on the Bloomberg Business app, SERIUSXM, 0:22:28.680 --> 0:22:32.280 the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan 0:22:32.320 --> 0:22:34.000 Hager and I'm Karen Moscow. 0:22:34.080 --> 0:22:36.800 Join us again tomorrow morning for all the news you 0:22:36.960 --> 0:22:40.200 need to start your day right here on Bloomberg Daybreak