Microsoft & Alphabet Lead Tech Rally, Trump Supreme Court Case

Bloomberg Audio Studios, podcasts, radio news. Good morning, I'm Nathan 0:00:12.119 --> 0:00:15.080 Hager and I'm Karen Moscow. Here are the stories we're 0:00:15.120 --> 0:00:15.920 following today. 0:00:16.200 --> 0:00:19.120 Let's begin with Alphabet. Those shares are hired by more 0:00:19.120 --> 0:00:23.160 than eleven percent. Google's parent company reported first quarter revenue 0:00:23.160 --> 0:00:26.520 that exceeded analyst expectations thanks to gains in its cloud 0:00:26.560 --> 0:00:31.520 computing unit. Alphabet's chief financial officer Ruth parazzas AI services 0:00:31.600 --> 0:00:33.240 are increasingly fueling growth. 0:00:33.800 --> 0:00:36.320 We are very pleased with our financial results for the 0:00:36.360 --> 0:00:40.280 first quarter, driven in particular by strength and search and cloud, 0:00:40.720 --> 0:00:43.839 as well as the ongoing efforts to durably re engineer 0:00:43.880 --> 0:00:44.920 our cost base. 0:00:44.880 --> 0:00:47.760 And alphabet chief financial officer Ruth Parat says the company 0:00:47.800 --> 0:00:50.120 will pay a dividend of twenty cents a share, it's 0:00:50.159 --> 0:00:53.840 its first ever, and will repurchase an additional seventy billion 0:00:53.880 --> 0:00:54.760 dollars in stock. 0:00:55.360 --> 0:00:58.000 Well Nathan shares a Microsoft, You're out more than three 0:00:58.000 --> 0:01:01.000 and a half percent. Quarterly sales and profit climb more 0:01:01.040 --> 0:01:04.399 than projected, lifted by corporate demand for the software maker's 0:01:04.440 --> 0:01:08.760 cloud and artificial intelligence offerings. Bloomberg Intelligence Senior tech analyst 0:01:08.880 --> 0:01:11.520 underrag Rana says it was a good quarter for azure 0:01:11.600 --> 0:01:13.080 It's cloud computing business. 0:01:13.319 --> 0:01:15.600 The AGEL gross of thirty one percent. I mean that's 0:01:15.600 --> 0:01:19.360 a big jump. The expectations were twenty eight percent, and 0:01:19.400 --> 0:01:22.240 frankly speaking, going into the quarter, we thought anything above 0:01:22.280 --> 0:01:24.480 twenty eight would be a welcome I mean, this is 0:01:24.480 --> 0:01:28.200 a very big number, frankly given the current macro conditions. 0:01:28.600 --> 0:01:32.559 Aside from cloud computing, Bloomberg Intelligence is underrag Rana says 0:01:32.680 --> 0:01:38.319 Microsoft's desktop software business benefited from stabilizing demand for personal computers. 0:01:38.440 --> 0:01:41.560 Well, Karen, the biggest tech winner this morning maybe Snap. 0:01:41.720 --> 0:01:45.120 Those shares are surging more than twenty three percent. The 0:01:45.280 --> 0:01:48.480 social media company reported first quarter results of pet estimates 0:01:48.520 --> 0:01:50.720 and gave an outlook that's stronger than forecast. 0:01:51.080 --> 0:01:54.480 Well, Nathan. One company that's not participating in this bounce 0:01:54.560 --> 0:01:58.080 back tech rally is Intel. Shares are down seven percent. 0:01:58.360 --> 0:02:01.960 The biggest maker of personal computer processors gave a lackluster 0:02:02.080 --> 0:02:05.360 forecast for the current period. Analysts say that's an indication 0:02:05.480 --> 0:02:08.120 Intel is still struggling to return to the top tier 0:02:08.160 --> 0:02:09.240 of the chip industry. 0:02:09.560 --> 0:02:10.960 Karen, want to get you up to date now on 0:02:11.000 --> 0:02:14.680 that proposed takeover in the mining industry. Anglo American has 0:02:14.840 --> 0:02:19.040 rejected a thirty nine billion dollar takeover proposal from BHP Group, 0:02:19.120 --> 0:02:23.840 saying it significantly undervalues the company. Bloomberg's Martin Richie says 0:02:23.840 --> 0:02:26.840 a rejection is not uncommon in deals of this nature. 0:02:27.000 --> 0:02:29.360 This is no unusual in takeover deals. 0:02:29.600 --> 0:02:32.120 Many uneless SARI have said that they think the premium 0:02:32.160 --> 0:02:37.320 offered by BHP is probably not sufficient for a transaction 0:02:37.480 --> 0:02:41.200 of this complexity, and Bloomberg's Martin Richie says BHP is 0:02:41.240 --> 0:02:42.920 now going to have to improve its offtware if it 0:02:42.960 --> 0:02:44.120 wants to start talks. 0:02:44.560 --> 0:02:47.680 Well, Nathan, we get another key reading on inflation today 0:02:47.760 --> 0:02:51.520 with the Fed's preferred inflation gauge, the PCEE deflator. It 0:02:51.560 --> 0:02:54.120 comes a day after a report that showed US economic 0:02:54.160 --> 0:02:57.320 growth slid to an almost two year low while inflation jumped, 0:02:57.480 --> 0:03:00.079 and we get a preview with Bloomberg's and Michael McKee. 0:03:00.160 --> 0:03:03.480 Well, that was a surprise. Pce inflation on a quarterly 0:03:03.520 --> 0:03:07.079 basis came in a lot hotter than anticipated yesterday. Today's 0:03:07.120 --> 0:03:10.600 report on March inflation will answer the question posed, was 0:03:10.639 --> 0:03:14.480 that because of January and February being revised higher, or 0:03:14.600 --> 0:03:16.840 is the March number going to be a lot stronger 0:03:16.880 --> 0:03:20.760 than forecast. If it were, that would really rock markets. 0:03:21.080 --> 0:03:24.320 Investors would see evidence inflation is not just sticky but 0:03:24.400 --> 0:03:27.600 actually rising again as reason for the Fed to give 0:03:27.680 --> 0:03:30.480 up any plans to cut interest rates this year. Eyes 0:03:30.520 --> 0:03:33.800 will also be on the report's consumer spending data. Slowing 0:03:33.840 --> 0:03:37.200 growth with rising inflation is the last thing Wall Street 0:03:37.200 --> 0:03:39.560 wants to see. Michael McKee, Bloomberg Radio. 0:03:39.640 --> 0:03:41.800 All right, Mike, thanks, Now, let's turn to politics and 0:03:41.880 --> 0:03:45.040 reports that former President Donald Trump's advisors are taking aim 0:03:45.120 --> 0:03:47.640 at the FED. According to the Wall Street Journal, they 0:03:47.680 --> 0:03:50.640 have drawn up roughly ten pages outlining a policy vision 0:03:50.680 --> 0:03:53.440 for the central Bank. Trump's allies are arguing the president 0:03:53.520 --> 0:03:56.120 should be consulted on interest rate decisions and that the 0:03:56.160 --> 0:03:58.560 Treasury Department should be used more as a check on 0:03:58.600 --> 0:04:01.320 the FED. Sources tell them Journal. Trump should also have 0:04:01.400 --> 0:04:04.600 the authority to remove J. Powell as chairman before his 0:04:04.760 --> 0:04:06.320 term ends in twenty twenty six. 0:04:06.720 --> 0:04:10.040 Well Nathan, speaking of Donald Trump. Immunity for the former 0:04:10.120 --> 0:04:14.000 president and all future presidents is now before the Supreme Court, 0:04:14.000 --> 0:04:16.240 and Bloomberg's Ed Baxter has the details. 0:04:16.839 --> 0:04:20.800 The Justice has expressed skepticism towards sweeping immunity, but did 0:04:20.839 --> 0:04:23.719 say there may be a place for some kind of protection. 0:04:24.400 --> 0:04:28.159 Justice Samuel Alito asked, without immunity, would presidents be able 0:04:28.160 --> 0:04:28.880 to act. 0:04:29.279 --> 0:04:30.440 After leaving office? 0:04:30.720 --> 0:04:32.960 Is not that the president is going to be able 0:04:33.000 --> 0:04:36.040 to go off into a peaceful retirement, but that the 0:04:36.080 --> 0:04:38.600 president may be criminally prosecuted. 0:04:38.920 --> 0:04:42.320 But Justice Katanji Brown Jackson said, if there is no 0:04:42.440 --> 0:04:44.400 potential liability. 0:04:43.880 --> 0:04:47.200 Wouldn't there be a significant risk that future presidents would 0:04:47.240 --> 0:04:52.799 be emboldened to commit crimes with abandon while they're in office. 0:04:53.000 --> 0:04:56.840 Justice Sonya Sotomayor brought it back more specifically to Trump, 0:04:57.040 --> 0:04:57.320 this is. 0:04:57.320 --> 0:05:00.480 What you're asking us to say, President, it's an intoc 0:05:00.560 --> 0:05:03.159 entitle for total personal gain. 0:05:03.720 --> 0:05:06.559 The justices seemed to say this may not be done 0:05:06.600 --> 0:05:10.560 so that his DC trial could start before the election. 0:05:11.120 --> 0:05:12.919 At Baxter Bloomberg Radio. 0:05:12.720 --> 0:05:15.400 All right, ed, thank you, and testimony resumes this morning 0:05:15.400 --> 0:05:18.080 in the Manhattan hush money trial of the former president, 0:05:18.080 --> 0:05:21.440 and it's the defense's turn to question former National Inquirer 0:05:21.480 --> 0:05:25.120 publisher David Pecker. He was the prosecution's first witness and 0:05:25.160 --> 0:05:28.279 described helping a very embarrassing stories that Trump feared would 0:05:28.360 --> 0:05:29.240 hurt his campaign. 0:05:29.560 --> 0:05:32.160 Well, we turned to geopolitics. Now, Nathan and Secretary of 0:05:32.240 --> 0:05:36.320 State Anthony Blencoln meeting with Chinese President Shijin Ping in Beijing. 0:05:36.520 --> 0:05:39.680 This follows about five hours of talks with China's Foreign 0:05:39.680 --> 0:05:43.120 Minister Wang Yi, who says problems are mounting between the 0:05:43.160 --> 0:05:46.480 world's two biggest economies. Here he is speaking through an interpreter. 0:05:49.279 --> 0:05:54.760 Kushani's relationship is beginning to stabilize across the areas. Our 0:05:55.040 --> 0:05:58.880 two sides have increased dialogue, cooperation, and the positive side 0:05:58.880 --> 0:06:02.400 of the relationship. This is welcomed by our two peoples 0:06:02.520 --> 0:06:07.240 and the international community. But at the same time, denective 0:06:07.279 --> 0:06:13.120 factors in the relationship is still increasing and building, and 0:06:13.160 --> 0:06:16.280 the relationship is facing all kinds of disruptions. 0:06:17.480 --> 0:06:17.600 Well. 0:06:17.680 --> 0:06:20.920 Following those comments from Foreign Minister Wig Yee, Chinese state 0:06:21.000 --> 0:06:24.320 media quoted President she is saying the US and China 0:06:24.400 --> 0:06:27.200 need to resolve some remaining issues and that the two 0:06:27.240 --> 0:06:33.839 countries should be partners, not rivals. Honest. Time now for 0:06:33.839 --> 0:06:35.520 a look at some of the other stories making news 0:06:35.520 --> 0:06:37.040 in New York and around the world. For that, we're 0:06:37.080 --> 0:06:40.120 joined by Bloomberg's Michael Barr. Michael, good Morning, Good. 0:06:39.920 --> 0:06:44.640 Morning, Karen Police crackdowns on college campuses nationwide have led 0:06:44.640 --> 0:06:49.280 to arrests and universities calling off commencement. Bloomberg's Amy Morris 0:06:49.320 --> 0:06:51.039 as the latest. 0:06:51.080 --> 0:06:55.200 The University of Southern California canceled its main commencement ceremonies 0:06:55.200 --> 0:06:58.560 citing safety concerns. Other schools have rewritten their rules to 0:06:58.640 --> 0:07:02.640 ban encampments and moved final exams to new locations. This 0:07:02.800 --> 0:07:05.719 after hundreds of students on campuses across the country have 0:07:05.760 --> 0:07:08.640 been arrested as they take part in a nationwide movement 0:07:08.839 --> 0:07:14.640 from Columbia to Harvard Berkeley, New York University, Yale, North Carolina, Illinois, Texas, 0:07:14.840 --> 0:07:19.000 George Washington University, and American University. The students are demanding 0:07:19.000 --> 0:07:22.440 schools cut financial ties to Israel and divest from companies 0:07:22.680 --> 0:07:26.000 enabling the conflict. They also want universities to drop charges 0:07:26.000 --> 0:07:30.840 against pro Palestinian student organizers in Washington, Amy Morris, Bloomberg, Radio. 0:07:31.480 --> 0:07:35.640 Harvey Weinstein's accusers and their advocates were shocked and angered 0:07:35.680 --> 0:07:38.880 by a New York appellate court's decision to overturn the 0:07:38.880 --> 0:07:42.760 ex movie Moguls twenty twenty rape conviction, but Me Too 0:07:42.880 --> 0:07:45.880 advocates sought to send a clear message that the movement 0:07:46.040 --> 0:07:49.720 has not been derailed. The appeals court overturned the conviction, 0:07:49.840 --> 0:07:54.440 finding the trial judge unfairly allowed testimony based on allegations 0:07:54.480 --> 0:07:57.640 that were not part of the case. Weinstein's attorney, Arthur 0:07:57.760 --> 0:07:59.800 idnella what the Court of Appeals said. 0:08:00.160 --> 0:08:05.040 You can't throw out one hundred years of legal precedents 0:08:05.520 --> 0:08:07.240 because someone is unpopular. 0:08:07.640 --> 0:08:10.520 The decision does not mean Weinstein will go free. He 0:08:10.600 --> 0:08:13.800 must serve a sixteen year sentence for rape in California. 0:08:13.920 --> 0:08:18.640 President Biden is in the New York City area for fundraisers. Yesterday, 0:08:18.680 --> 0:08:23.160 the President visited Syracuse. Biden announced a six billion dollar 0:08:23.240 --> 0:08:27.680 investment in semiconductor manufacturer Micron that he says will create 0:08:27.760 --> 0:08:30.120 thousands of jobs in New York and Idaho. 0:08:30.440 --> 0:08:32.800 Together a Shermer leader and I, we took action to 0:08:32.800 --> 0:08:36.040 make sure these chips are made in America again, creating 0:08:36.120 --> 0:08:38.560 tens of thousands, and I mean tens of thousands of 0:08:38.559 --> 0:08:41.800 good paying jobs. Bring your prices down for everyone. 0:08:42.559 --> 0:08:46.120 Last night, the President attended a fundraiser in Westchester County. 0:08:46.240 --> 0:08:48.920 Biden wraps up his New York visit today with more 0:08:48.960 --> 0:08:52.560 campaign stops. Global News twenty four hours a day and 0:08:52.760 --> 0:08:55.360 whenever you want it. With the Bloomberg News. Now, I'm 0:08:55.400 --> 0:08:57.719 Michael Barr, and this is Bloomberg. 0:08:57.760 --> 0:09:04.800 Herot all right, Michael, thank you. Time now for the 0:09:04.800 --> 0:09:08.480 Bloombergy Sports Update with John stash Hour. John, Good morning, 0:09:08.600 --> 0:09:09.320 Good morning, Karen. 0:09:09.360 --> 0:09:11.880 It's become an annual part of the NFL draft. Teams 0:09:11.880 --> 0:09:15.439 desperate to try and find the next Patrick Mahomes or 0:09:15.520 --> 0:09:18.240 Lamar Jackson. That's why the top three picks last night 0:09:18.280 --> 0:09:19.520 in Detroit, and six of the. 0:09:19.480 --> 0:09:21.760 Top twelve all quarterbacks. 0:09:21.800 --> 0:09:25.640 Caleb Williams of Chicago, Jaden Daniels to Washington, Drake May 0:09:25.720 --> 0:09:28.680 to New England. Then, in a stunning move, Atlanta took 0:09:28.800 --> 0:09:31.400 Michael Pennix junior. He was not expected to go that high, 0:09:31.440 --> 0:09:34.920 and the Falcons just signed free agent QB kirk Cousins. 0:09:35.240 --> 0:09:39.079 Minnesota took JJ McCarthy. Denver drafted bow Knicks. There was 0:09:39.120 --> 0:09:41.720 a belief the Giants would take a quarterback, but instead 0:09:41.720 --> 0:09:44.840 of taking someone to replace Daniel Jones, they took a 0:09:44.880 --> 0:09:51.200 player who should help Jones. LSU's speedy white out Malik Neighbors. 0:09:50.200 --> 0:09:52.480 One of those teams I can contribute with my you know, 0:09:52.559 --> 0:09:55.040 ability to do great things. With the football. So you know, 0:09:55.040 --> 0:09:57.640 I'm glad they picked me, and I'm hoping, you know, 0:09:57.679 --> 0:09:59.240 I know they're gonna do too many things when I 0:09:59.240 --> 0:10:01.680 get there, miss refit. I'm showing, you know, Dave Ball 0:10:01.679 --> 0:10:03.760 has turned a lot of great receivers into you know, 0:10:03.800 --> 0:10:05.680 a lot of great things. So I'm trying to beat 0:10:05.720 --> 0:10:06.560 just one of those guys. 0:10:06.600 --> 0:10:09.040 The Jets few picks later, went with Penn State tackle 0:10:09.120 --> 0:10:12.560 oulu Fashanu. Rounds two and three take place tonight, Rounds 0:10:12.559 --> 0:10:16.000 four and seven tomorrow. Nixon Sixers Game three in Philadelphia, 0:10:16.000 --> 0:10:18.679 tight first half, and then Joe l Embad went off 0:10:18.720 --> 0:10:22.800 in the third quarter, scored eighteen points, took four three pointers, 0:10:22.840 --> 0:10:25.320 made them all six ers one one, twenty five, one 0:10:25.280 --> 0:10:27.880 to fourteen, cutting the next series leading to to one 0:10:27.960 --> 0:10:31.320 m beat finished with fifty. He's the first in playoff 0:10:31.400 --> 0:10:35.320 history to score fifty on fewer than twenty shots. Jalen Brunson, 0:10:35.360 --> 0:10:37.960 who didn't play well on the two Nick wins, did 0:10:38.000 --> 0:10:40.160 play well in the Game three, Los score thirty nine. 0:10:40.240 --> 0:10:44.000 Game four Sunday afternoon, after two losses in Cleveland, Orlando, 0:10:44.080 --> 0:10:47.240 came home won by thirty eight in La Denver again 0:10:47.320 --> 0:10:49.319 beat the Lakers, and are up three to nothing. So 0:10:49.360 --> 0:10:52.000 are the Carolina Hurricanes. David the Islanders three to two. 0:10:52.360 --> 0:10:54.439 Florida won five to three at Tampa Bay, also a 0:10:54.440 --> 0:10:56.679 three nothing leeing. The Rangers looked to go up three nothing. 0:10:56.679 --> 0:11:00.040 Tonight in Washington, Yankees left eleven on base lost to 0:11:00.080 --> 0:11:02.679 oakloom three to one. John Stashy. That went Bloomberg's On. 0:11:02.760 --> 0:11:03.760 It's karonon Nathan. 0:11:06.000 --> 0:11:10.040 Coast to coast on Bloomberg Radio, nationwide on Sirius XM, 0:11:10.240 --> 0:11:13.120 and around the world on Bloomberg dot Com and the 0:11:13.160 --> 0:11:14.360 Bloomberg Business app. 0:11:14.600 --> 0:11:18.839 This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Well, 0:11:18.840 --> 0:11:21.120 the bulls are back in the driver's seat this morning 0:11:21.160 --> 0:11:24.960 after blowout earnings for Microsoft and Google parent Alphabet and 0:11:25.040 --> 0:11:28.040 a signal from both these tech giants that massive bets 0:11:28.280 --> 0:11:32.680 on artificial intelligence and cloud computing are paying off and 0:11:32.800 --> 0:11:36.120 for more. We're joined by Bloomberg's Kritty Goubta Critty. 0:11:36.160 --> 0:11:36.680 Good morning. 0:11:36.720 --> 0:11:39.080 Well, we know the bar was really high for both 0:11:39.080 --> 0:11:41.960 these companies, and you look at the price action this morning, 0:11:42.040 --> 0:11:44.320 it looks like investors think they cleared it and then. 0:11:44.280 --> 0:11:48.040 Some Good morning, Nathan, Yeah, the bar high for sure, 0:11:48.120 --> 0:11:51.280 and them delivering with SWAWD colors, but there is a 0:11:51.280 --> 0:11:54.200 little bit of a different story for nuances between the 0:11:54.200 --> 0:11:56.160 two companies. And I want to start with Alphabet here 0:11:56.160 --> 0:11:57.679 because that's the big one that a lot of people 0:11:57.679 --> 0:12:00.320 were watching in terms of the catchup trade when it 0:12:00.320 --> 0:12:02.840 comes to AI and cloud as well, because we know 0:12:02.960 --> 0:12:06.079 for the cloud business, Microsoft and Amazon Web Services have 0:12:06.280 --> 0:12:10.040 really been the outperformers and therefore the dominant players in 0:12:10.160 --> 0:12:12.679 terms of market share, whereas Alphabet and Oracle have been 0:12:12.679 --> 0:12:15.199 trying to make up some of the gap. This marks 0:12:15.200 --> 0:12:17.520 a little bit of a turning point for that dynamic 0:12:17.640 --> 0:12:20.760 simply because Alphabet came out and basically said that not 0:12:20.760 --> 0:12:22.920 only does they have a good sales quarter a good 0:12:22.960 --> 0:12:25.920 profit in terms of their numbers, but they also have 0:12:26.240 --> 0:12:30.040 their second quarter of profits specifically for their AI unit. 0:12:30.080 --> 0:12:32.160 I mean, the Wall Street to estimates there were about 0:12:32.160 --> 0:12:34.320 six hundred and twenty one million. They came out with 0:12:34.400 --> 0:12:37.640 nine hundred million. The reason this matters, Nathan, is because 0:12:37.679 --> 0:12:40.680 when you have that profitability, you can scale up more 0:12:40.760 --> 0:12:45.080 quickly and actually have more incentive to do that, and 0:12:45.120 --> 0:12:47.240 that's really put some on track to compete with the 0:12:47.400 --> 0:12:50.760 likes of Microsoft and AWS on top of that. As 0:12:50.800 --> 0:12:53.720 if that wasn't enough to really power the shares, they 0:12:53.800 --> 0:12:56.320 added a little bit of a sweetener, a twenty cent 0:12:56.440 --> 0:13:01.079 per share dividend, their first ever in history seventy billion 0:13:01.120 --> 0:13:04.280 dollar share buyback. Not too shabby for outset. 0:13:04.280 --> 0:13:06.520 Yeah, certainly not. So is this becoming more of a 0:13:06.679 --> 0:13:09.160 horse race than in the cloud? I mean, there's been 0:13:09.200 --> 0:13:13.680 so much attention on asure the Microsoft partnership with open Ai, 0:13:14.280 --> 0:13:16.840 and at the same time as you're's shown that, you 0:13:16.880 --> 0:13:18.880 know they've got more room to run as well. 0:13:20.080 --> 0:13:20.480 They do. 0:13:20.520 --> 0:13:22.720 And I think the context here is really important for 0:13:23.040 --> 0:13:25.760 Microsoft's business there, because their cloud business is the real 0:13:25.800 --> 0:13:29.360 money maker for their entire kind of company. And I 0:13:29.360 --> 0:13:31.800 think this quarter they had about a thirty percent growth rate, 0:13:32.080 --> 0:13:34.320 But they've been hugging around that thirty percent level for 0:13:34.400 --> 0:13:37.080 a couple of quarters now, and I want to maybe 0:13:37.080 --> 0:13:38.920 two or three quarters ago, there was a big concern 0:13:38.960 --> 0:13:41.760 they would start dipping. Essentially, this idea here simply being 0:13:41.880 --> 0:13:44.280 that growth rate makes a lot of sense when you're 0:13:44.320 --> 0:13:48.240 scaling up, you have this exponential rate of return and rise, 0:13:48.760 --> 0:13:51.320 but at some point it kind of plateaus and every 0:13:51.400 --> 0:13:54.040 quarter investors kind of go in and say, is this 0:13:54.080 --> 0:13:56.160 the moment that that Asia business is going to be 0:13:56.640 --> 0:13:59.920 less of or at least decelerate in terms of their growth. 0:14:00.360 --> 0:14:02.200 Microsoft has come out and said, look, that's not what's 0:14:02.200 --> 0:14:04.240 happening here when it comes to their cloud business. A 0:14:04.240 --> 0:14:07.160 lot of that is because they're now using AI as 0:14:07.160 --> 0:14:09.800 a tailwind for cloud, and I think mandeep Thing over 0:14:09.880 --> 0:14:12.839 Bloomberg Intelligence often makes a great point that a lot 0:14:12.880 --> 0:14:16.880 of kind of corporate America international corporates even happen and 0:14:17.000 --> 0:14:20.200 fully invested in cloud. So there's a lot of run 0:14:20.280 --> 0:14:22.320 room to begin with on the cloud business, even though 0:14:22.360 --> 0:14:24.840 it's been around for a decade or so. Add on 0:14:24.920 --> 0:14:26.840 the AI story and there's still a lot of growth ahead. 0:14:26.840 --> 0:14:29.480 And that's the message coming out of both Microsoft and 0:14:29.560 --> 0:14:30.480 out its so. 0:14:30.480 --> 0:14:32.120 Critty, how does this set us up for what we 0:14:32.120 --> 0:14:35.160 could get from Amazon next week? Of course they're big 0:14:35.200 --> 0:14:38.320 cloud player with Amazon Web Services, but is the pressure 0:14:38.400 --> 0:14:40.040 on even more now for them. 0:14:39.840 --> 0:14:44.280 To deliver it? Absolutely is, especially because a lot of 0:14:44.320 --> 0:14:46.840 folks have looked at Amazon Webserves as Amazon as a company, 0:14:46.840 --> 0:14:49.640 of course, but specifically Amazon Webserves is in their tech 0:14:49.720 --> 0:14:52.440 kind of division as being late to the AI trade. 0:14:52.560 --> 0:14:56.160 They do have an AI investment in anthropic, but it's 0:14:56.200 --> 0:14:59.640 not the same level of investment that for example, Microsoft 0:14:59.640 --> 0:15:02.160 has put towards open Ai. So a big question here 0:15:02.600 --> 0:15:06.360 is as AI becomes a tailwind for Alphabet and Microsoft's 0:15:06.360 --> 0:15:09.040 cloud services, does it then become kind of the Achilles 0:15:09.120 --> 0:15:12.600 Heel for the AWS cloud offering. And that's really where 0:15:12.960 --> 0:15:16.400 that's an incredibly kind of important tone change and tone set. 0:15:16.440 --> 0:15:18.680 I would argue that Amazon has to prove given that 0:15:18.800 --> 0:15:21.720 the new CEO, Andy Jase, used to be the head 0:15:21.720 --> 0:15:25.240 of WUS before he took on the rain over at 0:15:25.280 --> 0:15:25.760 the company. 0:15:26.080 --> 0:15:28.240 Just thirty seconds left here, Critty, But does the market 0:15:28.320 --> 0:15:31.560 narrative change? Will we get March PCEE later on this morning? 0:15:32.000 --> 0:15:34.080 It could change. Look, there was a lot of what 0:15:34.120 --> 0:15:36.800 some are calling this morning new European trade and overreaction 0:15:36.880 --> 0:15:39.360 in the bond marketing. Stock market numbers are still looking good, 0:15:39.400 --> 0:15:42.960 but again it's that pce diflator that could really change 0:15:42.960 --> 0:15:44.440 the dial and get a little bit more clearity on 0:15:44.440 --> 0:15:46.360 what we saw in the GDP numbers yesterday. 0:15:46.640 --> 0:15:49.560 This is Bloomberg day Break today, your morning brief on 0:15:49.640 --> 0:15:53.160 the stories making news from Wall Street to Washington and beyond. 0:15:53.440 --> 0:15:56.200 Look for us on your podcast feed at six am 0:15:56.280 --> 0:16:00.240 Eastern each morning, on Apple, Spotify, and anywhere else at 0:16:00.240 --> 0:16:01.080 your podcasts. 0:16:01.280 --> 0:16:04.000 You can also listen live each morning starting at five 0:16:04.040 --> 0:16:06.640 am Wall Street Time on Bloomberg eleven three to zero 0:16:06.680 --> 0:16:10.160 in New York, Bloomberg ninety nine one in Washington, Bloomberg 0:16:10.160 --> 0:16:13.160 one oh sixty one in Boston, and Bloomberg ninety sixty 0:16:13.320 --> 0:16:14.280 in San Francisco. 0:16:14.640 --> 0:16:17.800 Our flagship New York station is also available on your 0:16:17.840 --> 0:16:23.280 Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus. 0:16:23.320 --> 0:16:26.880 Listen coast to coast on the Bloomberg Business app, seriusxmb 0:16:27.040 --> 0:16:30.800 iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager 0:16:30.880 --> 0:16:32.160 and I'm Karen Moscow. 0:16:32.240 --> 0:16:35.000 Join us again tomorrow morning for all the news you 0:16:35.160 --> 0:16:38.360 need to start your day right here on Bloomberg Daybreak