October 31, 2025 • 18 mins
On today's podcast:
1) The mood in US stock markets has been lifted again by strong earnings from Apple and Amazon to round up the week of mega-cap results. Futures for both the S&P 500 and Nasdaq 100 were higher after both indexes sunk on Thursday. Apple forecast a major surge in sales for the holiday season to provide assurance to investors that the iPhone remains a growth driver, while Amazon’s cloud division notched its best quarterly growth in almost three years. That’s smoothed out the setback in the big tech and AI narrative from the mixed reception to results from Meta Platforms, Microsoft and Alphabet.
2) Nvidia CEO Jensen Huang still hopes to sell chips from the company’s Blackwell lineup to customers in China, though he has no current plans to do so, he told reporters Friday. Blackwell is Nvidia’s latest generation of artificial intelligence semiconductors, figuring prominently as a potential bargaining chip in trade talks between the US and China. Licensing the sale of those products did not figure in the discussion between President Trump and his Chinese counterpart Xi Jinping this week, with the US leader saying Nvidia and the Chinese government will have to keep talking about the $5 trillion company’s access to the Asian nation’s market.
3) President Trump called on Senate Republicans to vote to get rid of the filibuster in the upper chamber, amid a government shutdown that has lasted nearly a month. Because of the filibuster rule in the US Senate, most legislation needs 60 votes to pass. While a majority of lawmakers could revise those rules, both parties have largely resisted doing so to preserve their ability to shape legislation when outside of the majority. During the recent funding showdown, Democrats have refused to support a Republican bill offering stopgap funding unless the GOP agrees to extend healthcare subsidies.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2 (00:09):
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
are the stories we're following today.
Speaker 3 (00:15):
Well, Karen, the jump at Nasdaq Futures follows earnings from
Apple and Amazon. Let's begin with the iPhone maker. Those
shares are up two percent in early training. Apple did
blame a surprise decline in China revenue on supply disruptions,
but it's predicting it will return to growth in the
world's biggest smartphone arena as the iPhone seventeen gains momentum.
(00:36):
Mark German is Managing Tech editor for Bloomberg News.
Speaker 4 (00:40):
What stands out here is iPhone obviously grew tremendously six
percent year. Every year, they beat in nearly every product
category except the iPad. Had an extremely slight miss on
Wall Street forecast, and again those are just forecast numbers
that get made up anyways, so I don't think too
big of a deal there. The big one, though, is
a big decline in miss in Greater China. I think
(01:01):
some of that can be attributed to the iPhone air delay,
which was not expected, and they originally announced the iPhone.
Speaker 3 (01:07):
Air Bloomberg's Mark German says Apple's iPhone seventeen and seventeen
pro got off to a fast start in September, with
twenty nine percent year on year China sales growth in
the first two weeks of October.
Speaker 2 (01:19):
Well, the big tech winner this morning, Nathan is Amazon.
Those shares are more than twelve and a half percent.
Amazon's cloud unit posted the strongest growth rate in almost
three years. Amazon Web Services reported third quarter revenue of
thirty three billion dollars. That's an increase of twenty percent
from the prior year and the biggest year over year
(01:39):
rise since the end of twenty twenty two. Punam Goyle
as senior retail analyst at Bloomberg Intelligence.
Speaker 5 (01:45):
They hit it out of the park. Sales ver very
get across the board, across all business segments, AWS, online advertising,
even physical stores. So from a top line perspective, very
very encouraging results. In fact, AWS was probably the bright
spot here. Twenty percent gains. We haven't seen that in
a while.
Speaker 2 (02:03):
And Bloomberg Intelligence senior retail analyst Punham Goyles has Amazon's
total sales rows thirteen percent to more than one hundred
and eighty billion dollars.
Speaker 3 (02:12):
Gar Netflix shares are moving higher this morning as well.
The streaming giant has announced a stock split. Let's get
more from Bloomberg's John Tucker, John and Nathan.
Speaker 6 (02:21):
This is the second split in the last ten years
for the streaming industry leader, Netflix, approving a ten for
one stock split. The company wants to make a share
price more accessible for employees who take part in the
company stock option program. Netflix is one of only ten
in the S and P five hundred with a share
price above one thousand dollars stockholders of record at the
(02:42):
close of trading November tenth, they're going to receive nine
additional shares for every share held. At the same time,
Netflix is kicking the tires over at Warner Brothers Discovery.
Reuter's is the latest news service to report Netflix is
exploring a bid for their studio and streaming businesses. Bloomberg
New was reported earlier that Netflix and Comcast are weighing
(03:03):
bids for parts of that company. Netflix shares up over
three percent pre market this morning. You New York Ime,
John Tucker, Bloomberg Radio.
Speaker 2 (03:10):
All right, John, thank you well. Bloomberg News has learned
Intel as in preliminary talks to buy artificial intelligence chip
startup Samba Nova Systems. Sources say any deal would likely
value Samba Nova at below the five billion dollars he
garnered in a twenty twenty one funding round. Samba Nova
designs custom AI chips that aim to rival those offered
by in Video Well.
Speaker 3 (03:31):
Speaking of in Vidia, Karen Bloomberg News has learned the
AI chip giant plans to back another AI startup. Sources
say plans to invest as much as a billion dollars
in Poolside. In another development, in Video CEO Jensen wogtold
reporters he still hopes to sell chips from the company's
Blackwell lineup to customers in China, though he has no
current plans to do so. Speaking this morning at the
(03:53):
APEX CEO summit in South Korea, Wang talked about the
AI revolution.
Speaker 7 (03:57):
This year, AI became profitable, and when something becomes profitable,
you want to manufacture more of it, just like when
you're manufacturing chips and wafers and dram If the manufacturing
of those chips were profitable, you want to build more
factories to create more chips.
Speaker 3 (04:18):
And earlier this week, Jensen Wongs and Vidia became the
first company to reach a five trillion dollar market cap,
and checking the shares right now, they're up nearly two percent.
Speaker 2 (04:27):
Well, Nathan, let's get to the latest. Now on the
US China trade shrews, Chinese President Xi Jinping is warning
the world not to break supply chains. She's remarks at
the APEX summit in South Korea came after he sealed
a deal with President Trump to put rare earth restrictions
on hold for a year, while the US will roll
back some tariffs and export controls also for a year.
(04:49):
Treasury Secretary Scott Besson says this keeps the relationship on
hold for now.
Speaker 8 (04:54):
My guess is a hear from now will be back
to the table and we'll get another another delay, another role.
Because what everyone misses is the Chinese have rarers, but
you know we have President Trump's threat on tariffs. He
gave the team maximum negotiating leverage.
Speaker 2 (05:14):
And Treasury Secretary is go on bess and smoke on
Fox News, we get more on President She's or marks
from Bloomberg's jail desis in Hong Kong.
Speaker 9 (05:22):
You're seeing something that's really kind of like outwardly focused
on that idea of building unity within the region in particular.
I think, you know obviously that freder Hick Aside from
chi Jinping, you know, we've certainly seen some concerns elsewhere
in the region, particularly from Western companies who are concerned
about being left out of the invest of market. We
know that China itself has very many challenges within its
(05:43):
domestic economy that it's really sort of focused on, and
has actually made several efforts this year to try to
build up those messic industries.
Speaker 2 (05:50):
And Bloombergs deil Desis reports she used his speech to
tell some seven hundred billion dollars in foreign investment that
Shina has brought in over the last five years.
Speaker 3 (05:58):
And Washington Care and the government and shutdown has now
lasted a full month. On this thirty first day of
the funding fight, President Trump is calling on Senate Republicans
to end it by taking Democrats out of the picture.
In a social media post late last night, the President wrote,
in all caps, initiate the nuclear option, get rid of
the filibuster, and make America great again. Senate majority leader
(06:19):
John Thune says he has not had those discussions with
the White House. He says Democrats want to prolong the shutdown.
Speaker 2 (06:25):
It's all a ball leverage.
Speaker 8 (06:26):
That's what they're making.
Speaker 10 (06:27):
It all about. Leverage.
Speaker 3 (06:29):
The Majority Leader, John Thune spoke on the Senate floor
as the CEOs of four major airlines met with Vice
President JD. Vance at the White House. With air traffic
delays piling up during the shutdown, I worry about the
pilots who haven't gotten paid in a long time. I
worry about the air draft controllers, who, of course make
this entire system extra safey. Vice President Vance met with
the CEOs of United American, Delta, and Southwest Airlines. They
(06:52):
called on Democrats to back the Republicans clean stop gap
spending bill.
Speaker 2 (07:00):
It's time now for a look at some of the
other stories making news in New York and around the world,
and for that we're joined by Bloomberg's Michael Barr Michael,
good Morning.
Speaker 10 (07:07):
Good Morning, Karen. Buckingham Palace says that King Charles is
stripping his brother Prince Andrew of his remaining titles and
evicting him from his royal residence. The move follows revelations
about Andrew's relationship with convicted sex offender Jeffrey Epstein. Greg
Gross is a UK Royals expert at King's College in London.
Speaker 5 (07:29):
He's taken the maximum steps that I think are available
to him, and this is about getting the house in order.
Speaker 10 (07:39):
The palace, says Prince Andrew will now be known as
Andrew Mountbatten Windsor. Two people were found dead in flooded
basements after heavy rains in New York City yesterday. In
one case, a Brooklyn victim was a thirty nine year
old man. In Upper Manhattan, another man also drowned from
flooding in a basement late last night, the FAA issued
a temporary ground stop for Newark Airport in New Jersey
(08:03):
due to staffing issues. It comes as a Jet Blue
flight from Cancun to Newark was diverted to Tampa, Florida
Thursday after a sudden altitude drop led to multiple passengers
being hospitalized. It may not be the lover, but the
theft is no less devastating to the operators of the
Oakland Museum of California. Police say suspects stole more than
(08:25):
one thousand items from the museum's collection, including metalwork, jewelry,
and Native American baskets. Museum director and CEO Lori Foguty.
Speaker 11 (08:35):
We imagine a lot of this kind of material might
end up in a pawn shop or an antique store,
or even a flea market or swap meet, which is
why it's so important to get the word out to
the public, because people may see something that looks kind
of not like it should be there.
Speaker 10 (08:50):
Museum director Lorii Fogerty says the theft happened on October
fifteenth at an off site storage facility. Global News twenty
four hours a day and whenever you want to with
the Bloomberg News. Now, I'm Michael Barrn. This is Bloomberg Karen.
Speaker 1 (09:04):
Thanks Michael.
Speaker 2 (09:05):
Time now for our Bloomberg Sports update, and for that
we bring in John Stashauer.
Speaker 12 (09:09):
Thanks Daron. Week nine in the NFL Underway in Miami,
Baltimore got at star quarterback Lamar Jackson back after missing
the last three games. He threw four touchdown passes. The
Ravens beat the Dolphins twenty eight to six. They'll play
Games six of the World Series tonight in Toronto, and
the Blue Jays lead the Dodger three games to two.
They can win their first championship in thirty two years.
New manager of the Washington Nationals is Blake Puterra. He's
(09:31):
only thirty three years old. He'll be the youngest in
the majors in fifty years. He started his minor league
managing at age twenty five. That's a Bloomberg Sports update.
Speaker 2 (09:41):
Stay with us. More from Bloomberg Day Break coming up
after this.
Speaker 1 (09:49):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business opp This is Bloomberg Day Breas.
Speaker 3 (10:00):
Good morning, I'm Nathan Hager on a very good morning
for big tech investors. The big lift of the market
after the latest earnings from two of the Magnificent seven,
and Amazon is leading the charge after posting its fastest
growth in the cloud in about three years, while Apple's
forecast for the holidays may be overshadowing some disappointment in China.
Joining us now is Dan Ives, globalhead of Tech Research
(10:22):
at web Bush Securities. Dan, good morning. Let's start off
with Amazon. We are seeing a big surge in those
shares after Amazon Web Services posted a twenty percent year
over year growth number. Is that gonna be enough to
keep up after what we saw from Azure and Google
Cloud this week?
Speaker 13 (10:40):
Yeah? Nathan, this is a breakout quarter from Amazon. And
you know, did dyben on the outside looking in of
the AI revolution and these numbers show they're now starting
to see massive demand. And look, the New York City
cab driver is embarrass from Amazon.
Speaker 10 (10:57):
Right.
Speaker 13 (10:57):
So I think this is a huge movement from Amazon,
and I think you're going to see the Amazon bulls.
They'll be enjoying their candy on Halloween.
Speaker 3 (11:05):
Okay, Well, of course, coming into these earnings, we had
the outage at AWS. Does that still pose a concern
for Amazon investors?
Speaker 13 (11:17):
Well, gold standard, the reality is was that a little
black eye moment? Yeah, but it's not moving the new
relative to Amazon. Look, I think the key here is
that the advertising business looks strong, the AWUS business looks
like it's accelerated. And for a company that's really been
back against the wall, it's a huge breakout quarter. Now,
(11:39):
you know, I mean three thirty is are a new
price target. But I mean this is a stock that
could really have legs over the next sixty nine months.
Speaker 3 (11:48):
And of course the shares are trading around two point
fifty pre market this morning. Is Amazon justifying the spend
on AI? It hit a record in the quarter thirty
four point two billion dollars. Of course, we saw all
the blockbuster numbers from some of these other AI players
as well. In terms of what Amazon is reporting on
(12:08):
its AI spend. Is that justified?
Speaker 13 (12:11):
Look, it's an AI arms race. They have to spend.
I mean, look at Microsoft, look at Google, look at Meta.
Speaker 2 (12:19):
Hey.
Speaker 13 (12:19):
Look the reality is this is an AI party. Okay,
it start at nine pm, it's down ten thirty pm,
party goes to four am. No tech company wants to
be on the outside looking in, and for Amazon, investors
want to see them spend to make sure they monetize
this fourth Industrial revolution?
Speaker 3 (12:40):
Is Apple still on the outside looking in?
Speaker 10 (12:42):
For you?
Speaker 3 (12:42):
There's been a lot of talk heading into their earnings
and over the last several quarters about how much catch
up Apple needs to do in the AI race.
Speaker 13 (12:51):
Book from the AI party they're looking through through the
window from the outside, right or everyone else on the
dance for But for Apple, the reality is iPhone seventeen
looks strong. That's a huge positive. And I believe this
is a drum roll. They're going to partner with Google
for a mejor AI partnership, and that from a consumer perspective,
(13:13):
that's gonna be a huge wrap. I know that could
be seventy five two hundred dollars per share. That's why
for Apple twenty twenty six, I think is going to
be their year.
Speaker 3 (13:24):
In terms of what we saw in the quarter from Apple,
A lot of focus for investors on the outlook after
the kind of a slowdown in China. Is China still
a concern?
Speaker 13 (13:37):
China actually looks like it's showing met your growth into
next quarter because iPhone seventeen the air looks very strong.
I mean, i'd call those almost like Otani like guidance
for the December quarter, which is why the stock's going
to be up. And I think now you're starting to
look at the company's finally get back into mojo. You
(13:58):
have a lot of good news in the horizon, and
that's why. Look, I think from a large cap perspective,
Apple and Amazon are basically saying, don't forget about us,
and that was a huge validation what we saw last night.
Speaker 3 (14:10):
It was interesting, though, to hear on the call of
Apple saying that they're facing supply constraints that have kept
the iPhone revenue slightly below expectations. What about the possibility
of further supply constraints in quarters to come.
Speaker 13 (14:28):
Look, they're trying to do a dance around with tariffs, right,
I mean Cook ten percent politician, ninety percent CEO. So
we started to advocate that in terms of Trump administration,
we've seen that. But there are some supplies shoes. I
think a lot of those get rectified going into the
next quarter and the quarter after. This is a company
that's had a lot of growth issues nowhere in AI,
(14:51):
but it feels like now they're starting to really turn around,
which I think that's why, like you know, four trillion,
I think we're going to be looking at five trillion
dollars mark cap in the next year.
Speaker 3 (15:02):
Of course, in Vidio just hit a five trillion dollar
market cap just this week, and Jensen Wang, the CEO,
is trying to make a lot of deals at the
APEX summit in South Korea. What do you make of
some of the latest announcements this, for example, a billion
dollar investment in Poolside.
Speaker 13 (15:20):
Look, I love everything the Godfather of AI Jensen's done,
because they're planting flags around the world. This is we're
still in the second inning of where this is all
heading and it all starts in the video they're foundation
to where everything is heading, and they're making the smart
moves and that's exactly what they need to do at
(15:41):
the right time. And there's one there's one ship in
the world viewing the AI revolution and it's in video.
Speaker 3 (15:48):
And there's still talk, including from Jensen Wong himself, that
he'd like to be able to sell Blackwell chips into China.
Do you see that as a possibility that that could
be coming.
Speaker 13 (16:00):
Oh yeah, I think that's going to be the biggest
chip in the poker table when it comes to Trump
making sure Nvidia could sell back into China. That's significant. Look,
they're not going to go from ninety five percent market
share to zero and China big tech wands in Vidia chips.
That continues to be the gold standard in terms of
(16:21):
where it's all heading.
Speaker 3 (16:23):
Our last thirty seconds, Dan, Overall, from what we've seen
from the mag seven so far, we've got Apple and
Amazon on the rise. This morning, course, Microsoft and Meta
fell after their earnings. How do you see how these
companies have shaken out so far?
Speaker 13 (16:38):
They met the hype and even with Meta selling up,
they're sewing up because they're spending more on cap backs,
which is ultimately bullets for the AI revolution. Look, the
reality is is that this is a tech bow market
and the bears in hibernation mode can see AI in
the spreadsheets. But the reality is this, this is a
market going much higher, led by big tech, and I
(16:59):
think that's really the head one that receive from earners.
Speaker 2 (17:04):
This is Bloomberg Daybreak, your morning podcast on the stories
making news from Wall Street to Washington and beyond.
Speaker 3 (17:10):
Look for us on your podcast feed by six am
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Speaker 2 (17:16):
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Speaker 3 (17:31):
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Speaker 2 (17:37):
And don't forget to subscribe to Bloomberg News Now. It's
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Speaker 3 (17:50):
And I'm Nathan Hager join us again tomorrow morning for
all the news you need to start your day right
here on Bloomberg Day, Bray
Speaker 8 (18:01):
And the
Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2 (00:09):
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
are the stories we're following today.
Speaker 3 (00:15):
Well, Karen, the jump at Nasdaq Futures follows earnings from
Apple and Amazon. Let's begin with the iPhone maker. Those
shares are up two percent in early training. Apple did
blame a surprise decline in China revenue on supply disruptions,
but it's predicting it will return to growth in the
world's biggest smartphone arena as the iPhone seventeen gains momentum.
(00:36):
Mark German is Managing Tech editor for Bloomberg News.
Speaker 4 (00:40):
What stands out here is iPhone obviously grew tremendously six
percent year. Every year, they beat in nearly every product
category except the iPad. Had an extremely slight miss on
Wall Street forecast, and again those are just forecast numbers
that get made up anyways, so I don't think too
big of a deal there. The big one, though, is
a big decline in miss in Greater China. I think
(01:01):
some of that can be attributed to the iPhone air delay,
which was not expected, and they originally announced the iPhone.
Speaker 3 (01:07):
Air Bloomberg's Mark German says Apple's iPhone seventeen and seventeen
pro got off to a fast start in September, with
twenty nine percent year on year China sales growth in
the first two weeks of October.
Speaker 2 (01:19):
Well, the big tech winner this morning, Nathan is Amazon.
Those shares are more than twelve and a half percent.
Amazon's cloud unit posted the strongest growth rate in almost
three years. Amazon Web Services reported third quarter revenue of
thirty three billion dollars. That's an increase of twenty percent
from the prior year and the biggest year over year
(01:39):
rise since the end of twenty twenty two. Punam Goyle
as senior retail analyst at Bloomberg Intelligence.
Speaker 5 (01:45):
They hit it out of the park. Sales ver very
get across the board, across all business segments, AWS, online advertising,
even physical stores. So from a top line perspective, very
very encouraging results. In fact, AWS was probably the bright
spot here. Twenty percent gains. We haven't seen that in
a while.
Speaker 2 (02:03):
And Bloomberg Intelligence senior retail analyst Punham Goyles has Amazon's
total sales rows thirteen percent to more than one hundred
and eighty billion dollars.
Speaker 3 (02:12):
Gar Netflix shares are moving higher this morning as well.
The streaming giant has announced a stock split. Let's get
more from Bloomberg's John Tucker, John and Nathan.
Speaker 6 (02:21):
This is the second split in the last ten years
for the streaming industry leader, Netflix, approving a ten for
one stock split. The company wants to make a share
price more accessible for employees who take part in the
company stock option program. Netflix is one of only ten
in the S and P five hundred with a share
price above one thousand dollars stockholders of record at the
(02:42):
close of trading November tenth, they're going to receive nine
additional shares for every share held. At the same time,
Netflix is kicking the tires over at Warner Brothers Discovery.
Reuter's is the latest news service to report Netflix is
exploring a bid for their studio and streaming businesses. Bloomberg
New was reported earlier that Netflix and Comcast are weighing
(03:03):
bids for parts of that company. Netflix shares up over
three percent pre market this morning. You New York Ime,
John Tucker, Bloomberg Radio.
Speaker 2 (03:10):
All right, John, thank you well. Bloomberg News has learned
Intel as in preliminary talks to buy artificial intelligence chip
startup Samba Nova Systems. Sources say any deal would likely
value Samba Nova at below the five billion dollars he
garnered in a twenty twenty one funding round. Samba Nova
designs custom AI chips that aim to rival those offered
by in Video Well.
Speaker 3 (03:31):
Speaking of in Vidia, Karen Bloomberg News has learned the
AI chip giant plans to back another AI startup. Sources
say plans to invest as much as a billion dollars
in Poolside. In another development, in Video CEO Jensen wogtold
reporters he still hopes to sell chips from the company's
Blackwell lineup to customers in China, though he has no
current plans to do so. Speaking this morning at the
(03:53):
APEX CEO summit in South Korea, Wang talked about the
AI revolution.
Speaker 7 (03:57):
This year, AI became profitable, and when something becomes profitable,
you want to manufacture more of it, just like when
you're manufacturing chips and wafers and dram If the manufacturing
of those chips were profitable, you want to build more
factories to create more chips.
Speaker 3 (04:18):
And earlier this week, Jensen Wongs and Vidia became the
first company to reach a five trillion dollar market cap,
and checking the shares right now, they're up nearly two percent.
Speaker 2 (04:27):
Well, Nathan, let's get to the latest. Now on the
US China trade shrews, Chinese President Xi Jinping is warning
the world not to break supply chains. She's remarks at
the APEX summit in South Korea came after he sealed
a deal with President Trump to put rare earth restrictions
on hold for a year, while the US will roll
back some tariffs and export controls also for a year.
(04:49):
Treasury Secretary Scott Besson says this keeps the relationship on
hold for now.
Speaker 8 (04:54):
My guess is a hear from now will be back
to the table and we'll get another another delay, another role.
Because what everyone misses is the Chinese have rarers, but
you know we have President Trump's threat on tariffs. He
gave the team maximum negotiating leverage.
Speaker 2 (05:14):
And Treasury Secretary is go on bess and smoke on
Fox News, we get more on President She's or marks
from Bloomberg's jail desis in Hong Kong.
Speaker 9 (05:22):
You're seeing something that's really kind of like outwardly focused
on that idea of building unity within the region in particular.
I think, you know obviously that freder Hick Aside from
chi Jinping, you know, we've certainly seen some concerns elsewhere
in the region, particularly from Western companies who are concerned
about being left out of the invest of market. We
know that China itself has very many challenges within its
(05:43):
domestic economy that it's really sort of focused on, and
has actually made several efforts this year to try to
build up those messic industries.
Speaker 2 (05:50):
And Bloombergs deil Desis reports she used his speech to
tell some seven hundred billion dollars in foreign investment that
Shina has brought in over the last five years.
Speaker 3 (05:58):
And Washington Care and the government and shutdown has now
lasted a full month. On this thirty first day of
the funding fight, President Trump is calling on Senate Republicans
to end it by taking Democrats out of the picture.
In a social media post late last night, the President wrote,
in all caps, initiate the nuclear option, get rid of
the filibuster, and make America great again. Senate majority leader
(06:19):
John Thune says he has not had those discussions with
the White House. He says Democrats want to prolong the shutdown.
Speaker 2 (06:25):
It's all a ball leverage.
Speaker 8 (06:26):
That's what they're making.
Speaker 10 (06:27):
It all about. Leverage.
Speaker 3 (06:29):
The Majority Leader, John Thune spoke on the Senate floor
as the CEOs of four major airlines met with Vice
President JD. Vance at the White House. With air traffic
delays piling up during the shutdown, I worry about the
pilots who haven't gotten paid in a long time. I
worry about the air draft controllers, who, of course make
this entire system extra safey. Vice President Vance met with
the CEOs of United American, Delta, and Southwest Airlines. They
(06:52):
called on Democrats to back the Republicans clean stop gap
spending bill.
Speaker 2 (07:00):
It's time now for a look at some of the
other stories making news in New York and around the world,
and for that we're joined by Bloomberg's Michael Barr Michael,
good Morning.
Speaker 10 (07:07):
Good Morning, Karen. Buckingham Palace says that King Charles is
stripping his brother Prince Andrew of his remaining titles and
evicting him from his royal residence. The move follows revelations
about Andrew's relationship with convicted sex offender Jeffrey Epstein. Greg
Gross is a UK Royals expert at King's College in London.
Speaker 5 (07:29):
He's taken the maximum steps that I think are available
to him, and this is about getting the house in order.
Speaker 10 (07:39):
The palace, says Prince Andrew will now be known as
Andrew Mountbatten Windsor. Two people were found dead in flooded
basements after heavy rains in New York City yesterday. In
one case, a Brooklyn victim was a thirty nine year
old man. In Upper Manhattan, another man also drowned from
flooding in a basement late last night, the FAA issued
a temporary ground stop for Newark Airport in New Jersey
(08:03):
due to staffing issues. It comes as a Jet Blue
flight from Cancun to Newark was diverted to Tampa, Florida
Thursday after a sudden altitude drop led to multiple passengers
being hospitalized. It may not be the lover, but the
theft is no less devastating to the operators of the
Oakland Museum of California. Police say suspects stole more than
(08:25):
one thousand items from the museum's collection, including metalwork, jewelry,
and Native American baskets. Museum director and CEO Lori Foguty.
Speaker 11 (08:35):
We imagine a lot of this kind of material might
end up in a pawn shop or an antique store,
or even a flea market or swap meet, which is
why it's so important to get the word out to
the public, because people may see something that looks kind
of not like it should be there.
Speaker 10 (08:50):
Museum director Lorii Fogerty says the theft happened on October
fifteenth at an off site storage facility. Global News twenty
four hours a day and whenever you want to with
the Bloomberg News. Now, I'm Michael Barrn. This is Bloomberg Karen.
Speaker 1 (09:04):
Thanks Michael.
Speaker 2 (09:05):
Time now for our Bloomberg Sports update, and for that
we bring in John Stashauer.
Speaker 12 (09:09):
Thanks Daron. Week nine in the NFL Underway in Miami,
Baltimore got at star quarterback Lamar Jackson back after missing
the last three games. He threw four touchdown passes. The
Ravens beat the Dolphins twenty eight to six. They'll play
Games six of the World Series tonight in Toronto, and
the Blue Jays lead the Dodger three games to two.
They can win their first championship in thirty two years.
New manager of the Washington Nationals is Blake Puterra. He's
(09:31):
only thirty three years old. He'll be the youngest in
the majors in fifty years. He started his minor league
managing at age twenty five. That's a Bloomberg Sports update.
Speaker 2 (09:41):
Stay with us. More from Bloomberg Day Break coming up
after this.
Speaker 1 (09:49):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business opp This is Bloomberg Day Breas.
Speaker 3 (10:00):
Good morning, I'm Nathan Hager on a very good morning
for big tech investors. The big lift of the market
after the latest earnings from two of the Magnificent seven,
and Amazon is leading the charge after posting its fastest
growth in the cloud in about three years, while Apple's
forecast for the holidays may be overshadowing some disappointment in China.
Joining us now is Dan Ives, globalhead of Tech Research
(10:22):
at web Bush Securities. Dan, good morning. Let's start off
with Amazon. We are seeing a big surge in those
shares after Amazon Web Services posted a twenty percent year
over year growth number. Is that gonna be enough to
keep up after what we saw from Azure and Google
Cloud this week?
Speaker 13 (10:40):
Yeah? Nathan, this is a breakout quarter from Amazon. And
you know, did dyben on the outside looking in of
the AI revolution and these numbers show they're now starting
to see massive demand. And look, the New York City
cab driver is embarrass from Amazon.
Speaker 10 (10:57):
Right.
Speaker 13 (10:57):
So I think this is a huge movement from Amazon,
and I think you're going to see the Amazon bulls.
They'll be enjoying their candy on Halloween.
Speaker 3 (11:05):
Okay, Well, of course, coming into these earnings, we had
the outage at AWS. Does that still pose a concern
for Amazon investors?
Speaker 13 (11:17):
Well, gold standard, the reality is was that a little
black eye moment? Yeah, but it's not moving the new
relative to Amazon. Look, I think the key here is
that the advertising business looks strong, the AWUS business looks
like it's accelerated. And for a company that's really been
back against the wall, it's a huge breakout quarter. Now,
(11:39):
you know, I mean three thirty is are a new
price target. But I mean this is a stock that
could really have legs over the next sixty nine months.
Speaker 3 (11:48):
And of course the shares are trading around two point
fifty pre market this morning. Is Amazon justifying the spend
on AI? It hit a record in the quarter thirty
four point two billion dollars. Of course, we saw all
the blockbuster numbers from some of these other AI players
as well. In terms of what Amazon is reporting on
(12:08):
its AI spend. Is that justified?
Speaker 13 (12:11):
Look, it's an AI arms race. They have to spend.
I mean, look at Microsoft, look at Google, look at Meta.
Speaker 2 (12:19):
Hey.
Speaker 13 (12:19):
Look the reality is this is an AI party. Okay,
it start at nine pm, it's down ten thirty pm,
party goes to four am. No tech company wants to
be on the outside looking in, and for Amazon, investors
want to see them spend to make sure they monetize
this fourth Industrial revolution?
Speaker 3 (12:40):
Is Apple still on the outside looking in?
Speaker 10 (12:42):
For you?
Speaker 3 (12:42):
There's been a lot of talk heading into their earnings
and over the last several quarters about how much catch
up Apple needs to do in the AI race.
Speaker 13 (12:51):
Book from the AI party they're looking through through the
window from the outside, right or everyone else on the
dance for But for Apple, the reality is iPhone seventeen
looks strong. That's a huge positive. And I believe this
is a drum roll. They're going to partner with Google
for a mejor AI partnership, and that from a consumer perspective,
(13:13):
that's gonna be a huge wrap. I know that could
be seventy five two hundred dollars per share. That's why
for Apple twenty twenty six, I think is going to
be their year.
Speaker 3 (13:24):
In terms of what we saw in the quarter from Apple,
A lot of focus for investors on the outlook after
the kind of a slowdown in China. Is China still
a concern?
Speaker 13 (13:37):
China actually looks like it's showing met your growth into
next quarter because iPhone seventeen the air looks very strong.
I mean, i'd call those almost like Otani like guidance
for the December quarter, which is why the stock's going
to be up. And I think now you're starting to
look at the company's finally get back into mojo. You
(13:58):
have a lot of good news in the horizon, and
that's why. Look, I think from a large cap perspective,
Apple and Amazon are basically saying, don't forget about us,
and that was a huge validation what we saw last night.
Speaker 3 (14:10):
It was interesting, though, to hear on the call of
Apple saying that they're facing supply constraints that have kept
the iPhone revenue slightly below expectations. What about the possibility
of further supply constraints in quarters to come.
Speaker 13 (14:28):
Look, they're trying to do a dance around with tariffs, right,
I mean Cook ten percent politician, ninety percent CEO. So
we started to advocate that in terms of Trump administration,
we've seen that. But there are some supplies shoes. I
think a lot of those get rectified going into the
next quarter and the quarter after. This is a company
that's had a lot of growth issues nowhere in AI,
(14:51):
but it feels like now they're starting to really turn around,
which I think that's why, like you know, four trillion,
I think we're going to be looking at five trillion
dollars mark cap in the next year.
Speaker 3 (15:02):
Of course, in Vidio just hit a five trillion dollar
market cap just this week, and Jensen Wang, the CEO,
is trying to make a lot of deals at the
APEX summit in South Korea. What do you make of
some of the latest announcements this, for example, a billion
dollar investment in Poolside.
Speaker 13 (15:20):
Look, I love everything the Godfather of AI Jensen's done,
because they're planting flags around the world. This is we're
still in the second inning of where this is all
heading and it all starts in the video they're foundation
to where everything is heading, and they're making the smart
moves and that's exactly what they need to do at
(15:41):
the right time. And there's one there's one ship in
the world viewing the AI revolution and it's in video.
Speaker 3 (15:48):
And there's still talk, including from Jensen Wong himself, that
he'd like to be able to sell Blackwell chips into China.
Do you see that as a possibility that that could
be coming.
Speaker 13 (16:00):
Oh yeah, I think that's going to be the biggest
chip in the poker table when it comes to Trump
making sure Nvidia could sell back into China. That's significant. Look,
they're not going to go from ninety five percent market
share to zero and China big tech wands in Vidia chips.
That continues to be the gold standard in terms of
(16:21):
where it's all heading.
Speaker 3 (16:23):
Our last thirty seconds, Dan, Overall, from what we've seen
from the mag seven so far, we've got Apple and
Amazon on the rise. This morning, course, Microsoft and Meta
fell after their earnings. How do you see how these
companies have shaken out so far?
Speaker 13 (16:38):
They met the hype and even with Meta selling up,
they're sewing up because they're spending more on cap backs,
which is ultimately bullets for the AI revolution. Look, the
reality is is that this is a tech bow market
and the bears in hibernation mode can see AI in
the spreadsheets. But the reality is this, this is a
market going much higher, led by big tech, and I
(16:59):
think that's really the head one that receive from earners.
Speaker 2 (17:04):
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Speaker 3 (17:10):
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Speaker 3 (17:31):
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Speaker 2 (17:37):
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Speaker 3 (17:50):
And I'm Nathan Hager join us again tomorrow morning for
all the news you need to start your day right
here on Bloomberg Day, Bray
Speaker 8 (18:01):
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