April 26, 2024 • 16 mins
On today's podcast:
1) Stocks Gain on Tech Rally
2) Supreme Court Wary of Trump Immunity But May Keep Trial on Hold
3) Anglo Rejects BHP Takeover Bid as Significantly Undervalued
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. Good morning, I'm Nathan
Hager and I'm Karen Moscow. Here are the stories we're
following today.
Speaker 2 (00:16):
Let's begin with Alphabet. Those shares are hired by more
than eleven percent. Google's parent company reported first quarter revenue
that exceeded analyst expectations thanks to gains in its cloud
computing unit. Alphabet's chief financial officer Ruth parazzas AI services
are increasingly fueling growth.
Speaker 3 (00:33):
We are very pleased with our financial results for the
first quarter, driven in particular by strength and search and cloud,
as well as the ongoing efforts to durably re engineer
our cost base.
Speaker 2 (00:44):
And alphabet chief financial officer Ruth Parat says the company
will pay a dividend of twenty cents a share, it's
its first ever, and will repurchase an additional seventy billion
dollars in stock.
Speaker 1 (00:55):
Well Nathan shares a Microsoft, You're out more than three
and a half percent. Quarterly sales and profit climb more
than projected, lifted by corporate demand for the software maker's
cloud and artificial intelligence offerings. Bloomberg Intelligence Senior tech analyst
underrag Rana says it was a good quarter for azure
It's cloud computing business.
Speaker 4 (01:13):
The AGEL gross of thirty one percent. I mean that's
a big jump. The expectations were twenty eight percent, and
frankly speaking, going into the quarter, we thought anything above
twenty eight would be a welcome I mean, this is
a very big number, frankly given the current macro conditions.
Speaker 1 (01:28):
Aside from cloud computing, Bloomberg Intelligence is underrag Rana says
Microsoft's desktop software business benefited from stabilizing demand for personal computers.
Speaker 2 (01:38):
Well, Karen, the biggest tech winner this morning maybe Snap.
Those shares are surging more than twenty three percent. The
social media company reported first quarter results of pet estimates
and gave an outlook that's stronger than forecast.
Speaker 1 (01:51):
Well, Nathan. One company that's not participating in this bounce
back tech rally is Intel. Shares are down seven percent.
The biggest maker of personal computer processors gave a lackluster
forecast for the current period. Analysts say that's an indication
Intel is still struggling to return to the top tier
of the chip industry.
Speaker 2 (02:09):
Karen, want to get you up to date now on
that proposed takeover in the mining industry. Anglo American has
rejected a thirty nine billion dollar takeover proposal from BHP Group,
saying it significantly undervalues the company. Bloomberg's Martin Richie says
a rejection is not uncommon in deals of this nature.
Speaker 4 (02:27):
This is no unusual in takeover deals.
Speaker 2 (02:29):
Many uneless SARI have said that they think the premium
offered by BHP is probably not sufficient for a transaction
of this complexity, and Bloomberg's Martin Richie says BHP is
now going to have to improve its offtware if it
wants to start talks.
Speaker 1 (02:44):
Well, Nathan, we get another key reading on inflation today
with the Fed's preferred inflation gauge, the PCEE deflator. It
comes a day after a report that showed US economic
growth slid to an almost two year low while inflation jumped,
and we get a preview with Bloomberg's and Michael McKee.
Speaker 5 (03:00):
Well, that was a surprise. Pce inflation on a quarterly
basis came in a lot hotter than anticipated yesterday. Today's
report on March inflation will answer the question posed, was
that because of January and February being revised higher, or
is the March number going to be a lot stronger
than forecast. If it were, that would really rock markets.
(03:21):
Investors would see evidence inflation is not just sticky but
actually rising again as reason for the Fed to give
up any plans to cut interest rates this year. Eyes
will also be on the report's consumer spending data. Slowing
growth with rising inflation is the last thing Wall Street
wants to see. Michael McKee, Bloomberg Radio.
Speaker 2 (03:39):
All right, Mike, thanks, Now, let's turn to politics and
reports that former President Donald Trump's advisors are taking aim
at the FED. According to the Wall Street Journal, they
have drawn up roughly ten pages outlining a policy vision
for the central Bank. Trump's allies are arguing the president
should be consulted on interest rate decisions and that the
Treasury Department should be used more as a check on
the FED. Sources tell them Journal. Trump should also have
(04:01):
the authority to remove J. Powell as chairman before his
term ends in twenty twenty six.
Speaker 1 (04:06):
Well Nathan, speaking of Donald Trump. Immunity for the former
president and all future presidents is now before the Supreme Court,
and Bloomberg's Ed Baxter has the details.
Speaker 6 (04:16):
The Justice has expressed skepticism towards sweeping immunity, but did
say there may be a place for some kind of protection.
Justice Samuel Alito asked, without immunity, would presidents be able
to act.
Speaker 7 (04:29):
After leaving office?
Speaker 8 (04:30):
Is not that the president is going to be able
to go off into a peaceful retirement, but that the
president may be criminally prosecuted.
Speaker 6 (04:38):
But Justice Katanji Brown Jackson said, if there is no
potential liability.
Speaker 3 (04:43):
Wouldn't there be a significant risk that future presidents would
be emboldened to commit crimes with abandon while they're in office.
Speaker 6 (04:53):
Justice Sonya Sotomayor brought it back more specifically to Trump,
this is.
Speaker 5 (04:57):
What you're asking us to say, President, it's an intoc
entitle for total personal gain.
Speaker 6 (05:03):
The justices seemed to say this may not be done
so that his DC trial could start before the election.
At Baxter Bloomberg Radio.
Speaker 2 (05:12):
All right, ed, thank you, and testimony resumes this morning
in the Manhattan hush money trial of the former president,
and it's the defense's turn to question former National Inquirer
publisher David Pecker. He was the prosecution's first witness and
described helping a very embarrassing stories that Trump feared would
hurt his campaign.
Speaker 1 (05:29):
Well, we turned to geopolitics. Now, Nathan and Secretary of
State Anthony Blencoln meeting with Chinese President Shijin Ping in Beijing.
This follows about five hours of talks with China's Foreign
Minister Wang Yi, who says problems are mounting between the
world's two biggest economies. Here he is speaking through an interpreter.
Speaker 9 (05:49):
Kushani's relationship is beginning to stabilize across the areas. Our
two sides have increased dialogue, cooperation, and the positive side
of the relationship. This is welcomed by our two peoples
and the international community. But at the same time, denective
factors in the relationship is still increasing and building, and
(06:13):
the relationship is facing all kinds of disruptions.
Speaker 7 (06:17):
Well.
Speaker 1 (06:17):
Following those comments from Foreign Minister Wig Yee, Chinese state
media quoted President she is saying the US and China
need to resolve some remaining issues and that the two
countries should be partners, not rivals. Honest. Time now for
a look at some of the other stories making news
in New York and around the world. For that, we're
joined by Bloomberg's Michael Barr. Michael, good Morning, Good.
Speaker 10 (06:39):
Morning, Karen Police crackdowns on college campuses nationwide have led
to arrests and universities calling off commencement. Bloomberg's Amy Morris
as the latest.
Speaker 11 (06:51):
The University of Southern California canceled its main commencement ceremonies
citing safety concerns. Other schools have rewritten their rules to
ban encampments and moved final exams to new locations. This
after hundreds of students on campuses across the country have
been arrested as they take part in a nationwide movement
from Columbia to Harvard Berkeley, New York University, Yale, North Carolina, Illinois, Texas,
(07:14):
George Washington University, and American University. The students are demanding
schools cut financial ties to Israel and divest from companies
enabling the conflict. They also want universities to drop charges
against pro Palestinian student organizers in Washington, Amy Morris, Bloomberg, Radio.
Speaker 10 (07:31):
Harvey Weinstein's accusers and their advocates were shocked and angered
by a New York appellate court's decision to overturn the
ex movie Moguls twenty twenty rape conviction, but Me Too
advocates sought to send a clear message that the movement
has not been derailed. The appeals court overturned the conviction,
finding the trial judge unfairly allowed testimony based on allegations
(07:54):
that were not part of the case. Weinstein's attorney, Arthur
idnella what the Court of Appeals said.
Speaker 8 (08:00):
You can't throw out one hundred years of legal precedents
because someone is unpopular.
Speaker 10 (08:07):
The decision does not mean Weinstein will go free. He
must serve a sixteen year sentence for rape in California.
President Biden is in the New York City area for fundraisers. Yesterday,
the President visited Syracuse. Biden announced a six billion dollar
investment in semiconductor manufacturer Micron that he says will create
(08:27):
thousands of jobs in New York and Idaho.
Speaker 12 (08:30):
Together a Shermer leader and I, we took action to
make sure these chips are made in America again, creating
tens of thousands, and I mean tens of thousands of
good paying jobs. Bring your prices down for everyone.
Speaker 10 (08:42):
Last night, the President attended a fundraiser in Westchester County.
Biden wraps up his New York visit today with more
campaign stops. Global News twenty four hours a day and
whenever you want it. With the Bloomberg News. Now, I'm
Michael Barr, and this is Bloomberg.
Speaker 1 (08:57):
Herot all right, Michael, thank you. Time now for the
Bloombergy Sports Update with John stash Hour. John, Good morning,
Good morning, Karen.
Speaker 8 (09:09):
It's become an annual part of the NFL draft. Teams
desperate to try and find the next Patrick Mahomes or
Lamar Jackson. That's why the top three picks last night
in Detroit, and six of the.
Speaker 10 (09:19):
Top twelve all quarterbacks.
Speaker 8 (09:21):
Caleb Williams of Chicago, Jaden Daniels to Washington, Drake May
to New England. Then, in a stunning move, Atlanta took
Michael Pennix junior. He was not expected to go that high,
and the Falcons just signed free agent QB kirk Cousins.
Minnesota took JJ McCarthy. Denver drafted bow Knicks. There was
a belief the Giants would take a quarterback, but instead
of taking someone to replace Daniel Jones, they took a
(09:44):
player who should help Jones. LSU's speedy white out Malik Neighbors.
Speaker 13 (09:50):
One of those teams I can contribute with my you know,
ability to do great things. With the football. So you know,
I'm glad they picked me, and I'm hoping, you know,
I know they're gonna do too many things when I
get there, miss refit. I'm showing, you know, Dave Ball
has turned a lot of great receivers into you know,
a lot of great things. So I'm trying to beat
just one of those guys.
Speaker 8 (10:06):
The Jets few picks later, went with Penn State tackle
oulu Fashanu. Rounds two and three take place tonight, Rounds
four and seven tomorrow. Nixon Sixers Game three in Philadelphia,
tight first half, and then Joe l Embad went off
in the third quarter, scored eighteen points, took four three pointers,
made them all six ers one one, twenty five, one
to fourteen, cutting the next series leading to to one
(10:27):
m beat finished with fifty. He's the first in playoff
history to score fifty on fewer than twenty shots. Jalen Brunson,
who didn't play well on the two Nick wins, did
play well in the Game three, Los score thirty nine.
Game four Sunday afternoon, after two losses in Cleveland, Orlando,
came home won by thirty eight in La Denver again
beat the Lakers, and are up three to nothing. So
(10:49):
are the Carolina Hurricanes. David the Islanders three to two.
Florida won five to three at Tampa Bay, also a
three nothing leeing. The Rangers looked to go up three nothing.
Tonight in Washington, Yankees left eleven on base lost to
oakloom three to one. John Stashy. That went Bloomberg's On.
It's karonon Nathan.
Speaker 10 (11:06):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app.
Speaker 2 (11:14):
This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Well,
the bulls are back in the driver's seat this morning
after blowout earnings for Microsoft and Google parent Alphabet and
a signal from both these tech giants that massive bets
on artificial intelligence and cloud computing are paying off and
for more. We're joined by Bloomberg's Kritty Goubta Critty.
Speaker 6 (11:36):
Good morning.
Speaker 2 (11:36):
Well, we know the bar was really high for both
these companies, and you look at the price action this morning,
it looks like investors think they cleared it and then.
Speaker 7 (11:44):
Some Good morning, Nathan, Yeah, the bar high for sure,
and them delivering with SWAWD colors, but there is a
little bit of a different story for nuances between the
two companies. And I want to start with Alphabet here
because that's the big one that a lot of people
were watching in terms of the catchup trade when it
comes to AI and cloud as well, because we know
for the cloud business, Microsoft and Amazon Web Services have
(12:06):
really been the outperformers and therefore the dominant players in
terms of market share, whereas Alphabet and Oracle have been
trying to make up some of the gap. This marks
a little bit of a turning point for that dynamic
simply because Alphabet came out and basically said that not
only does they have a good sales quarter a good
profit in terms of their numbers, but they also have
their second quarter of profits specifically for their AI unit.
(12:30):
I mean, the Wall Street to estimates there were about
six hundred and twenty one million. They came out with
nine hundred million. The reason this matters, Nathan, is because
when you have that profitability, you can scale up more
quickly and actually have more incentive to do that, and
that's really put some on track to compete with the
likes of Microsoft and AWS on top of that. As
(12:50):
if that wasn't enough to really power the shares, they
added a little bit of a sweetener, a twenty cent
per share dividend, their first ever in history seventy billion
dollar share buyback. Not too shabby for outset.
Speaker 2 (13:04):
Yeah, certainly not. So is this becoming more of a
horse race than in the cloud? I mean, there's been
so much attention on asure the Microsoft partnership with open Ai,
and at the same time as you're's shown that, you
know they've got more room to run as well.
Speaker 5 (13:20):
They do.
Speaker 7 (13:20):
And I think the context here is really important for
Microsoft's business there, because their cloud business is the real
money maker for their entire kind of company. And I
think this quarter they had about a thirty percent growth rate,
But they've been hugging around that thirty percent level for
a couple of quarters now, and I want to maybe
two or three quarters ago, there was a big concern
they would start dipping. Essentially, this idea here simply being
(13:41):
that growth rate makes a lot of sense when you're
scaling up, you have this exponential rate of return and rise,
but at some point it kind of plateaus and every
quarter investors kind of go in and say, is this
the moment that that Asia business is going to be
less of or at least decelerate in terms of their growth.
Microsoft has come out and said, look, that's not what's
(14:02):
happening here when it comes to their cloud business. A
lot of that is because they're now using AI as
a tailwind for cloud, and I think mandeep Thing over
Bloomberg Intelligence often makes a great point that a lot
of kind of corporate America international corporates even happen and
fully invested in cloud. So there's a lot of run
room to begin with on the cloud business, even though
(14:22):
it's been around for a decade or so. Add on
the AI story and there's still a lot of growth ahead.
And that's the message coming out of both Microsoft and
out its so.
Speaker 2 (14:30):
Critty, how does this set us up for what we
could get from Amazon next week? Of course they're big
cloud player with Amazon Web Services, but is the pressure
on even more now for them.
Speaker 7 (14:39):
To deliver it? Absolutely is, especially because a lot of
folks have looked at Amazon Webserves as Amazon as a company,
of course, but specifically Amazon Webserves is in their tech
kind of division as being late to the AI trade.
They do have an AI investment in anthropic, but it's
not the same level of investment that for example, Microsoft
has put towards open Ai. So a big question here
(15:02):
is as AI becomes a tailwind for Alphabet and Microsoft's
cloud services, does it then become kind of the Achilles
Heel for the AWS cloud offering. And that's really where
that's an incredibly kind of important tone change and tone set.
I would argue that Amazon has to prove given that
the new CEO, Andy Jase, used to be the head
of WUS before he took on the rain over at
(15:25):
the company.
Speaker 2 (15:26):
Just thirty seconds left here, Critty, But does the market
narrative change? Will we get March PCEE later on this morning?
Speaker 7 (15:32):
It could change. Look, there was a lot of what
some are calling this morning new European trade and overreaction
in the bond marketing. Stock market numbers are still looking good,
but again it's that pce diflator that could really change
the dial and get a little bit more clearity on
what we saw in the GDP numbers yesterday.
Speaker 14 (15:46):
This is Bloomberg day Break today, your morning brief on
the stories making news from Wall Street to Washington and beyond.
Speaker 1 (15:53):
Look for us on your podcast feed at six am
Eastern each morning, on Apple, Spotify, and anywhere else at
your podcasts.
Speaker 14 (16:01):
You can also listen live each morning starting at five
am Wall Street Time on Bloomberg eleven three to zero
in New York, Bloomberg ninety nine one in Washington, Bloomberg
one oh sixty one in Boston, and Bloomberg ninety sixty
in San Francisco.
Speaker 1 (16:14):
Our flagship New York station is also available on your
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Speaker 14 (16:23):
Listen coast to coast on the Bloomberg Business app, seriusxmb
iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager
and I'm Karen Moscow.
Speaker 1 (16:32):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg Daybreak
Bloomberg Audio Studios, podcasts, radio news. Good morning, I'm Nathan
Hager and I'm Karen Moscow. Here are the stories we're
following today.
Speaker 2 (00:16):
Let's begin with Alphabet. Those shares are hired by more
than eleven percent. Google's parent company reported first quarter revenue
that exceeded analyst expectations thanks to gains in its cloud
computing unit. Alphabet's chief financial officer Ruth parazzas AI services
are increasingly fueling growth.
Speaker 3 (00:33):
We are very pleased with our financial results for the
first quarter, driven in particular by strength and search and cloud,
as well as the ongoing efforts to durably re engineer
our cost base.
Speaker 2 (00:44):
And alphabet chief financial officer Ruth Parat says the company
will pay a dividend of twenty cents a share, it's
its first ever, and will repurchase an additional seventy billion
dollars in stock.
Speaker 1 (00:55):
Well Nathan shares a Microsoft, You're out more than three
and a half percent. Quarterly sales and profit climb more
than projected, lifted by corporate demand for the software maker's
cloud and artificial intelligence offerings. Bloomberg Intelligence Senior tech analyst
underrag Rana says it was a good quarter for azure
It's cloud computing business.
Speaker 4 (01:13):
The AGEL gross of thirty one percent. I mean that's
a big jump. The expectations were twenty eight percent, and
frankly speaking, going into the quarter, we thought anything above
twenty eight would be a welcome I mean, this is
a very big number, frankly given the current macro conditions.
Speaker 1 (01:28):
Aside from cloud computing, Bloomberg Intelligence is underrag Rana says
Microsoft's desktop software business benefited from stabilizing demand for personal computers.
Speaker 2 (01:38):
Well, Karen, the biggest tech winner this morning maybe Snap.
Those shares are surging more than twenty three percent. The
social media company reported first quarter results of pet estimates
and gave an outlook that's stronger than forecast.
Speaker 1 (01:51):
Well, Nathan. One company that's not participating in this bounce
back tech rally is Intel. Shares are down seven percent.
The biggest maker of personal computer processors gave a lackluster
forecast for the current period. Analysts say that's an indication
Intel is still struggling to return to the top tier
of the chip industry.
Speaker 2 (02:09):
Karen, want to get you up to date now on
that proposed takeover in the mining industry. Anglo American has
rejected a thirty nine billion dollar takeover proposal from BHP Group,
saying it significantly undervalues the company. Bloomberg's Martin Richie says
a rejection is not uncommon in deals of this nature.
Speaker 4 (02:27):
This is no unusual in takeover deals.
Speaker 2 (02:29):
Many uneless SARI have said that they think the premium
offered by BHP is probably not sufficient for a transaction
of this complexity, and Bloomberg's Martin Richie says BHP is
now going to have to improve its offtware if it
wants to start talks.
Speaker 1 (02:44):
Well, Nathan, we get another key reading on inflation today
with the Fed's preferred inflation gauge, the PCEE deflator. It
comes a day after a report that showed US economic
growth slid to an almost two year low while inflation jumped,
and we get a preview with Bloomberg's and Michael McKee.
Speaker 5 (03:00):
Well, that was a surprise. Pce inflation on a quarterly
basis came in a lot hotter than anticipated yesterday. Today's
report on March inflation will answer the question posed, was
that because of January and February being revised higher, or
is the March number going to be a lot stronger
than forecast. If it were, that would really rock markets.
(03:21):
Investors would see evidence inflation is not just sticky but
actually rising again as reason for the Fed to give
up any plans to cut interest rates this year. Eyes
will also be on the report's consumer spending data. Slowing
growth with rising inflation is the last thing Wall Street
wants to see. Michael McKee, Bloomberg Radio.
Speaker 2 (03:39):
All right, Mike, thanks, Now, let's turn to politics and
reports that former President Donald Trump's advisors are taking aim
at the FED. According to the Wall Street Journal, they
have drawn up roughly ten pages outlining a policy vision
for the central Bank. Trump's allies are arguing the president
should be consulted on interest rate decisions and that the
Treasury Department should be used more as a check on
the FED. Sources tell them Journal. Trump should also have
(04:01):
the authority to remove J. Powell as chairman before his
term ends in twenty twenty six.
Speaker 1 (04:06):
Well Nathan, speaking of Donald Trump. Immunity for the former
president and all future presidents is now before the Supreme Court,
and Bloomberg's Ed Baxter has the details.
Speaker 6 (04:16):
The Justice has expressed skepticism towards sweeping immunity, but did
say there may be a place for some kind of protection.
Justice Samuel Alito asked, without immunity, would presidents be able
to act.
Speaker 7 (04:29):
After leaving office?
Speaker 8 (04:30):
Is not that the president is going to be able
to go off into a peaceful retirement, but that the
president may be criminally prosecuted.
Speaker 6 (04:38):
But Justice Katanji Brown Jackson said, if there is no
potential liability.
Speaker 3 (04:43):
Wouldn't there be a significant risk that future presidents would
be emboldened to commit crimes with abandon while they're in office.
Speaker 6 (04:53):
Justice Sonya Sotomayor brought it back more specifically to Trump,
this is.
Speaker 5 (04:57):
What you're asking us to say, President, it's an intoc
entitle for total personal gain.
Speaker 6 (05:03):
The justices seemed to say this may not be done
so that his DC trial could start before the election.
At Baxter Bloomberg Radio.
Speaker 2 (05:12):
All right, ed, thank you, and testimony resumes this morning
in the Manhattan hush money trial of the former president,
and it's the defense's turn to question former National Inquirer
publisher David Pecker. He was the prosecution's first witness and
described helping a very embarrassing stories that Trump feared would
hurt his campaign.
Speaker 1 (05:29):
Well, we turned to geopolitics. Now, Nathan and Secretary of
State Anthony Blencoln meeting with Chinese President Shijin Ping in Beijing.
This follows about five hours of talks with China's Foreign
Minister Wang Yi, who says problems are mounting between the
world's two biggest economies. Here he is speaking through an interpreter.
Speaker 9 (05:49):
Kushani's relationship is beginning to stabilize across the areas. Our
two sides have increased dialogue, cooperation, and the positive side
of the relationship. This is welcomed by our two peoples
and the international community. But at the same time, denective
factors in the relationship is still increasing and building, and
(06:13):
the relationship is facing all kinds of disruptions.
Speaker 7 (06:17):
Well.
Speaker 1 (06:17):
Following those comments from Foreign Minister Wig Yee, Chinese state
media quoted President she is saying the US and China
need to resolve some remaining issues and that the two
countries should be partners, not rivals. Honest. Time now for
a look at some of the other stories making news
in New York and around the world. For that, we're
joined by Bloomberg's Michael Barr. Michael, good Morning, Good.
Speaker 10 (06:39):
Morning, Karen Police crackdowns on college campuses nationwide have led
to arrests and universities calling off commencement. Bloomberg's Amy Morris
as the latest.
Speaker 11 (06:51):
The University of Southern California canceled its main commencement ceremonies
citing safety concerns. Other schools have rewritten their rules to
ban encampments and moved final exams to new locations. This
after hundreds of students on campuses across the country have
been arrested as they take part in a nationwide movement
from Columbia to Harvard Berkeley, New York University, Yale, North Carolina, Illinois, Texas,
(07:14):
George Washington University, and American University. The students are demanding
schools cut financial ties to Israel and divest from companies
enabling the conflict. They also want universities to drop charges
against pro Palestinian student organizers in Washington, Amy Morris, Bloomberg, Radio.
Speaker 10 (07:31):
Harvey Weinstein's accusers and their advocates were shocked and angered
by a New York appellate court's decision to overturn the
ex movie Moguls twenty twenty rape conviction, but Me Too
advocates sought to send a clear message that the movement
has not been derailed. The appeals court overturned the conviction,
finding the trial judge unfairly allowed testimony based on allegations
(07:54):
that were not part of the case. Weinstein's attorney, Arthur
idnella what the Court of Appeals said.
Speaker 8 (08:00):
You can't throw out one hundred years of legal precedents
because someone is unpopular.
Speaker 10 (08:07):
The decision does not mean Weinstein will go free. He
must serve a sixteen year sentence for rape in California.
President Biden is in the New York City area for fundraisers. Yesterday,
the President visited Syracuse. Biden announced a six billion dollar
investment in semiconductor manufacturer Micron that he says will create
(08:27):
thousands of jobs in New York and Idaho.
Speaker 12 (08:30):
Together a Shermer leader and I, we took action to
make sure these chips are made in America again, creating
tens of thousands, and I mean tens of thousands of
good paying jobs. Bring your prices down for everyone.
Speaker 10 (08:42):
Last night, the President attended a fundraiser in Westchester County.
Biden wraps up his New York visit today with more
campaign stops. Global News twenty four hours a day and
whenever you want it. With the Bloomberg News. Now, I'm
Michael Barr, and this is Bloomberg.
Speaker 1 (08:57):
Herot all right, Michael, thank you. Time now for the
Bloombergy Sports Update with John stash Hour. John, Good morning,
Good morning, Karen.
Speaker 8 (09:09):
It's become an annual part of the NFL draft. Teams
desperate to try and find the next Patrick Mahomes or
Lamar Jackson. That's why the top three picks last night
in Detroit, and six of the.
Speaker 10 (09:19):
Top twelve all quarterbacks.
Speaker 8 (09:21):
Caleb Williams of Chicago, Jaden Daniels to Washington, Drake May
to New England. Then, in a stunning move, Atlanta took
Michael Pennix junior. He was not expected to go that high,
and the Falcons just signed free agent QB kirk Cousins.
Minnesota took JJ McCarthy. Denver drafted bow Knicks. There was
a belief the Giants would take a quarterback, but instead
of taking someone to replace Daniel Jones, they took a
(09:44):
player who should help Jones. LSU's speedy white out Malik Neighbors.
Speaker 13 (09:50):
One of those teams I can contribute with my you know,
ability to do great things. With the football. So you know,
I'm glad they picked me, and I'm hoping, you know,
I know they're gonna do too many things when I
get there, miss refit. I'm showing, you know, Dave Ball
has turned a lot of great receivers into you know,
a lot of great things. So I'm trying to beat
just one of those guys.
Speaker 8 (10:06):
The Jets few picks later, went with Penn State tackle
oulu Fashanu. Rounds two and three take place tonight, Rounds
four and seven tomorrow. Nixon Sixers Game three in Philadelphia,
tight first half, and then Joe l Embad went off
in the third quarter, scored eighteen points, took four three pointers,
made them all six ers one one, twenty five, one
to fourteen, cutting the next series leading to to one
(10:27):
m beat finished with fifty. He's the first in playoff
history to score fifty on fewer than twenty shots. Jalen Brunson,
who didn't play well on the two Nick wins, did
play well in the Game three, Los score thirty nine.
Game four Sunday afternoon, after two losses in Cleveland, Orlando,
came home won by thirty eight in La Denver again
beat the Lakers, and are up three to nothing. So
(10:49):
are the Carolina Hurricanes. David the Islanders three to two.
Florida won five to three at Tampa Bay, also a
three nothing leeing. The Rangers looked to go up three nothing.
Tonight in Washington, Yankees left eleven on base lost to
oakloom three to one. John Stashy. That went Bloomberg's On.
It's karonon Nathan.
Speaker 10 (11:06):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app.
Speaker 2 (11:14):
This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Well,
the bulls are back in the driver's seat this morning
after blowout earnings for Microsoft and Google parent Alphabet and
a signal from both these tech giants that massive bets
on artificial intelligence and cloud computing are paying off and
for more. We're joined by Bloomberg's Kritty Goubta Critty.
Speaker 6 (11:36):
Good morning.
Speaker 2 (11:36):
Well, we know the bar was really high for both
these companies, and you look at the price action this morning,
it looks like investors think they cleared it and then.
Speaker 7 (11:44):
Some Good morning, Nathan, Yeah, the bar high for sure,
and them delivering with SWAWD colors, but there is a
little bit of a different story for nuances between the
two companies. And I want to start with Alphabet here
because that's the big one that a lot of people
were watching in terms of the catchup trade when it
comes to AI and cloud as well, because we know
for the cloud business, Microsoft and Amazon Web Services have
(12:06):
really been the outperformers and therefore the dominant players in
terms of market share, whereas Alphabet and Oracle have been
trying to make up some of the gap. This marks
a little bit of a turning point for that dynamic
simply because Alphabet came out and basically said that not
only does they have a good sales quarter a good
profit in terms of their numbers, but they also have
their second quarter of profits specifically for their AI unit.
(12:30):
I mean, the Wall Street to estimates there were about
six hundred and twenty one million. They came out with
nine hundred million. The reason this matters, Nathan, is because
when you have that profitability, you can scale up more
quickly and actually have more incentive to do that, and
that's really put some on track to compete with the
likes of Microsoft and AWS on top of that. As
(12:50):
if that wasn't enough to really power the shares, they
added a little bit of a sweetener, a twenty cent
per share dividend, their first ever in history seventy billion
dollar share buyback. Not too shabby for outset.
Speaker 2 (13:04):
Yeah, certainly not. So is this becoming more of a
horse race than in the cloud? I mean, there's been
so much attention on asure the Microsoft partnership with open Ai,
and at the same time as you're's shown that, you
know they've got more room to run as well.
Speaker 5 (13:20):
They do.
Speaker 7 (13:20):
And I think the context here is really important for
Microsoft's business there, because their cloud business is the real
money maker for their entire kind of company. And I
think this quarter they had about a thirty percent growth rate,
But they've been hugging around that thirty percent level for
a couple of quarters now, and I want to maybe
two or three quarters ago, there was a big concern
they would start dipping. Essentially, this idea here simply being
(13:41):
that growth rate makes a lot of sense when you're
scaling up, you have this exponential rate of return and rise,
but at some point it kind of plateaus and every
quarter investors kind of go in and say, is this
the moment that that Asia business is going to be
less of or at least decelerate in terms of their growth.
Microsoft has come out and said, look, that's not what's
(14:02):
happening here when it comes to their cloud business. A
lot of that is because they're now using AI as
a tailwind for cloud, and I think mandeep Thing over
Bloomberg Intelligence often makes a great point that a lot
of kind of corporate America international corporates even happen and
fully invested in cloud. So there's a lot of run
room to begin with on the cloud business, even though
(14:22):
it's been around for a decade or so. Add on
the AI story and there's still a lot of growth ahead.
And that's the message coming out of both Microsoft and
out its so.
Speaker 2 (14:30):
Critty, how does this set us up for what we
could get from Amazon next week? Of course they're big
cloud player with Amazon Web Services, but is the pressure
on even more now for them.
Speaker 7 (14:39):
To deliver it? Absolutely is, especially because a lot of
folks have looked at Amazon Webserves as Amazon as a company,
of course, but specifically Amazon Webserves is in their tech
kind of division as being late to the AI trade.
They do have an AI investment in anthropic, but it's
not the same level of investment that for example, Microsoft
has put towards open Ai. So a big question here
(15:02):
is as AI becomes a tailwind for Alphabet and Microsoft's
cloud services, does it then become kind of the Achilles
Heel for the AWS cloud offering. And that's really where
that's an incredibly kind of important tone change and tone set.
I would argue that Amazon has to prove given that
the new CEO, Andy Jase, used to be the head
of WUS before he took on the rain over at
(15:25):
the company.
Speaker 2 (15:26):
Just thirty seconds left here, Critty, But does the market
narrative change? Will we get March PCEE later on this morning?
Speaker 7 (15:32):
It could change. Look, there was a lot of what
some are calling this morning new European trade and overreaction
in the bond marketing. Stock market numbers are still looking good,
but again it's that pce diflator that could really change
the dial and get a little bit more clearity on
what we saw in the GDP numbers yesterday.
Speaker 14 (15:46):
This is Bloomberg day Break today, your morning brief on
the stories making news from Wall Street to Washington and beyond.
Speaker 1 (15:53):
Look for us on your podcast feed at six am
Eastern each morning, on Apple, Spotify, and anywhere else at
your podcasts.
Speaker 14 (16:01):
You can also listen live each morning starting at five
am Wall Street Time on Bloomberg eleven three to zero
in New York, Bloomberg ninety nine one in Washington, Bloomberg
one oh sixty one in Boston, and Bloomberg ninety sixty
in San Francisco.
Speaker 1 (16:14):
Our flagship New York station is also available on your
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Speaker 14 (16:23):
Listen coast to coast on the Bloomberg Business app, seriusxmb
iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager
and I'm Karen Moscow.
Speaker 1 (16:32):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg Daybreak
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