July 31, 2025 • 21 mins
On today's podcast:
1) Tech stocks surge after blowout quarters by Microsoft and Meta, and more Mag 7 earnings on tap as Apple and Amazon report today. Microsoft shares gained more than 8% in after-hours trading while Meta jumped more than 11% after both pledged to spend lavishly on artificial intelligence. Stocks rose in early trading as upbeat earnings helped drive optimism over resilient corporate profits.
2) Fed Chair Jay Powell bucks pressure from the White House and two dissenters to leave rates unchanged. The dollar dropped, sliding from its highest level since May after Fed Chair Jay Powell Wednesday said no decision had been made about easing policy in September.
3) President Trump unleashes a flurry of trade surprises ahead of tomorrow's deadline. The president announced tariffs of 15% on imports from South Korea and 25% on imports from India, accompanied by criticism of India's purchases of Russian energy and weapons. Deals are being drafted or have been agreed upon with several countries, including Thailand, Cambodia, and Taiwan, as Trump attempts to create a new global trade order.
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2 (00:10):
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, let's begin with blowout earnings from a pair
of tech heavyweights, Microsoft and Meta Platforms.
Speaker 4 (00:20):
Let's begin with Microsoft.
Speaker 3 (00:22):
Those shares are trading it at all time high and
if that holds, the tech giant would become the second
company in the world to reach a four.
Speaker 4 (00:28):
Trillion dollar valuation.
Speaker 3 (00:30):
Microsoft's latest results confirm it is leading in artificial intelligence
with a thirty nine percent rise in sales for its
cloud business. Dan Ives is Global head of Tech Research
at Webbush Securities.
Speaker 4 (00:42):
Massive beat on cloud.
Speaker 5 (00:44):
You see more and more of these use cases, these hyperscalers,
those are the best indicators.
Speaker 6 (00:49):
That just shows where the next spending in AI is gone.
Speaker 4 (00:52):
And that's why right now, if you're a tech.
Speaker 2 (00:53):
Bear, you're in hibernation mode.
Speaker 4 (00:56):
In that cave and you can't find AI in the spreadsheet.
Speaker 3 (00:59):
Dan Ives, a Webbush has raised his twelve month price
target on Microsoft to six hundred and twenty five dollars.
Right now, the shares are up more than eight percent
in the pre market trading around five hundred and fifty
six dollars a share.
Speaker 2 (01:10):
Well, Nathan Shares a Meta they're also a surging They're
up almost twelve percent in early trading. The Facebook parent
reporter results at beat estimates. Metta is also taking advantage
of strong advertising and stepping up spending next year, executives
saying now is the time to seize on investment opportunities
in AI. Man Deep Singh is senior Tech analyst for
Bloomberg Intelligence.
Speaker 7 (01:31):
There is a sequential acceleration in ad impressions as well
as at pricing growth, and to my mind, that is
a sign of them applying AI to boost engagement. Obviously,
the user growth has been almost the same every quarter,
you know, four to five percent, So the fact that
impressions grew eleven percent is a sign that people are
(01:53):
spending more time on their family of apps.
Speaker 2 (01:55):
Man Deep Singh at Bloomberg Intelligences Meta is also forecasting
third order revenue that beat Wall Street estimates.
Speaker 7 (02:02):
Well.
Speaker 3 (02:02):
Karen, One big tech stock is not participating in the rally.
This morning, Shares of Qualcomm are down more than five
percent in the pre market. The biggest maker of chips
that run smartphones, reported at lackluster growth. That's feeling concerns
that tariffs will take a toll on Qualcomm and the
broader chip industry.
Speaker 2 (02:19):
Well up next, Nathan, we get more earnings from big
tech after the bell results come in from Apple and Amazon.
Bloomberg's Time Busby tells us what to expect from the
iPhone maker.
Speaker 8 (02:29):
Despite this period traditionally being one of the slowest of
the year before it releases new products for the holidays.
The iPhone maker is projected to report modest sales growth
after adjusting some of its manufacturing to allset the impact
of the Trump tariffs. But Wallstreet is expecting continued sluggish
demand for gadgets like its TV set top boxes and
the Vision Pro mixed reality headset, and investors will want
(02:51):
to hear more about its AI strategy after more of
its AI talent was recently poached by Meta. Bloomberg consensus
calls for revenue of eighty nine point three billion on
Ernix per share of a dollar forty three Tom buzzby
Bloomberg Radio.
Speaker 4 (03:04):
Okay, Tom, thank you know.
Speaker 3 (03:05):
When it comes to auto earnings, shares of Ford are
down more than one percent in early training. The automaker's
warning profit. We'll see a sharp drop on the fallout
from President Trump's tariffs. We spoke with Ford Motor CEO
Jim Farley.
Speaker 5 (03:19):
Well, we're working with the administration is to take that.
Speaker 4 (03:22):
Layered tariff use. The authors have their own tear.
Speaker 3 (03:25):
Plus or subject to all these other tariffs.
Speaker 5 (03:27):
We're working with Commerce and the Trump administration to minimize
our tariff expense so that we can get more competitive.
Speaker 3 (03:35):
Ford's CEO, Jim Farley says adjusted earnings could fall as
much as thirty six percent. That's due in part to
a net tariff impact of two billion dollars. That's about
five hundred million more than the company previously expected.
Speaker 2 (03:47):
Well, Nathan, let's turn to the economy. Now, the Federal
Reserve to be specific, Despite pressure from the White House,
the Fed kept its key interest rate unchanged yesterday. Is
Central Banks said growth moderated early this year and that
uncertainty remains elevated. Here's how Vecher J. Powell put it.
Speaker 9 (04:04):
Changes to government policies continue to evolve and their effects
on the economy remain uncertain. Higher tariffs have begun to
show through more clearly to prices of some goods, but
their overall effects on economic activity and inflation remain to
be seen.
Speaker 2 (04:18):
Vetcher J. Powell also answered questions about two members of
the Monetary Policy Committee dissenting. It's the first time that's
happened in over thirty years. Governors Michelle Bowman and Christopher
Waller both voted for a quarter point rate cut.
Speaker 3 (04:30):
Well Now, Karen details on a hot and cold relationship
between wall Street and the White House. JP Morgan Chase CEO,
Jamie Diamond and President Trump are talking again. Bloomberg's John
Tucker joins us in New York with the details. It's
been a while, John, Good morning. Yeah, it's kind of
warming up once again. We're now learning that Diamond met
with President Trump at the Oval Office last week to
(04:51):
talk about the economy, trade, and financial regulation. Mister Trump
picked Diamonds bring on the prospect of lowering interest rates,
and they also touched on the administration's pushed to impose tariffs.
The renewed dialogue Ashley began in June after years of tension.
You'll recall back in twenty twenty three, Trump called Diamond
highly overrated. If the Diamond urged business leaders to back
(05:13):
Nikki Haley in the Republican primary, he also accused JP
Morgan of discriminating against conservatives. When the President's April tariff
announcements sent markets plunging, Diamond set a trade war risk
plunging the economy into recession. Well, the President did take notice.
He reportedly cited Diamond's comments as reason for pausing the tariffs.
(05:33):
In New York Ime, John Tucker Bloomberg.
Speaker 2 (05:35):
Radio, All right, John, thank you now to the latest
on trade. With one day to go until his tariff deadline,
President Trump has made a flurry of deals and demands.
Last night, he announced a fifteen percent tariff on South
Korean imports, including cars, that matches the rate Japan agreed
to last week, and beget more with Bloomberg's Denny Thomas
and Seoul.
Speaker 10 (05:55):
Seul has been bagging behind in all these street talks
because of the political chaos had here, and as we
were hitting up to this August to US deadline, it
was it was pretty uncertain whether we would reach it
data not.
Speaker 2 (06:07):
And Bloomberg's Denny Thomas reports the agreement also includes a
three hundred and fifty billion dollar fund for South Korea
to invest in the US.
Speaker 4 (06:14):
And the South Korea Deal.
Speaker 3 (06:15):
Karen comes after news on India, President Trump says he'll
impost twenty five percent tariffs on that country's exports, even
though that country was one of the first to engage
in trade talks of the US. Nisa Biswal is a
partner at the Asia Group.
Speaker 11 (06:27):
For the President to come in with a very hardball
tactic of announcing twenty five percent tariffs as well as
penalties for you know, Russian oil and gas and sports,
et cetera, I think is a little bit surprising, and
certainly to our Indian friends, they're kind of shocked because
(06:48):
they thought that they were working in good faith and we're.
Speaker 2 (06:51):
Close to having a deal.
Speaker 4 (06:52):
Nisha biswell with the Asia Group.
Speaker 3 (06:54):
President Trump says India's tariffs are among the highest in
the world, but his team is still conducting talks, so
there could be more to come on that front.
Speaker 2 (07:01):
Meantime, Nathan Commerce Secretary Howard Lutnek says the US has
made deals with Thailand and Cambodia. Those details came in
an interview with Fox News. He didn't elaborate on those agreements.
President Trump had used trade talks to urge both countries
to agree to a ceasefire. In recent days, the US
has also signed a trade deal with Pakistan. And here's
Pakistan's finance minister.
Speaker 8 (07:21):
I think we have a come long way for way
we were and where we are today.
Speaker 10 (07:26):
In terms of our overall strategic partnership between Pakistan and
the United.
Speaker 2 (07:31):
States, and Pakistan's finance minister says it's trade deal with
the US will boost Pakistan's oil reserves.
Speaker 3 (07:37):
Still caring, a deal with Mexico and Canada remains elusive. Today,
President Trump plans to speak with Mexico's President Claudia Shinbaum
as she looks to avoid a thirty percent tariff. Shinbaum
met yesterday with Republican Congressman Don Bacon and Democrat Rokana.
They came away optimistic about the two countries expanding trade
and security cooperation. At the same time, President Trump is
warning it's getting harder to make a deal with Canada.
(08:00):
He posted as much on social media after Canadian Prime
Minister Markcarney announced that he'll recognize a Palestinian state at
the UN Summit in September.
Speaker 2 (08:08):
Well, Nathan back here in the US, Dangerous weather is
in focus again today. The Northeast heat wave is receding,
but a new weather threat is on the way heavy
rain and flash flooding in Bloomberg meteor relogist Craig Allen
has the details.
Speaker 6 (08:22):
There is a category three out of four threat for
excessive rainfall running right up from Washington, d c. Up
ninety five through Baltimore, Philadelphia to about the New York
City area and the worst of the rain will be
falling during the late Thursday afternoon into Thursday evening commute,
and possibly even into Friday morning. This threat, if it materializes,
(08:42):
will impact eighteen thousand square miles and the possibility of
over twenty two million people impacted by this rainfall for
the late afternoon and next twenty four hours.
Speaker 2 (08:54):
And that's Bloomberg meteorologist Craig Allen, who says thunderstorms could
accompany the rain, resulting in as much as two two
inches of rainfall per hour.
Speaker 3 (09:02):
And a political story to end this one, Karen former
Vice President Kamala Harris says she will not run for
California governor next year.
Speaker 4 (09:10):
There had been speculations she would.
Speaker 3 (09:12):
Analys say it leaves open the possibility Harris mounts a
third run for the White House in twenty twenty eight.
Speaker 2 (09:21):
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.
Speaker 4 (09:27):
Michael, good Morning, Good morning, Karen.
Speaker 12 (09:29):
Authorities say the man who killed four people at a
Manhattan office building bought the rifle he used in the
attack and the car he drove across the country from
his supervisor at a Las Vegas casino. Police say Shane
Tomorrow fatally shot four people on Monday before killing himself.
New York Governor Kathy.
Speaker 13 (09:47):
Hokle there's nothing that can justify, you know, the intentionality
behind someone who travels across many states, you know, loads
up his vehicle with a weapon of mass destruction, intent
on slaughtering people. Also, he knew exactly what he was doing.
Speaker 12 (10:02):
And the first of victims was laid to rest yesterday.
Julia Hyman, who worked for Roudent Management, was twenty seven
years old. Today, funeral services will take place for the
NYPD officer killed in the attack, Didero Islam. About two
dozen people were taken to the hospital after a Delta
Airlines flight encountered severe turbulence that forced it to make
(10:25):
an emergency landing in Minneapolis. The airline says Delta Flight
fifty six was heading from Salt Lake City to Amsterdam.
Russia attack Key with a barrage of drones and missiles overnight,
in defiance of President Donald Trump's calls for the Kremlin
to reach a truce with the Ukraine. The bombardment killed
at least six people, including a child, and injured more
(10:47):
than fifty. Pressure is increasing globally to end the war
in Gaza. More than twenty Arab and Muslim countries have
issued a joint call condemning Hamas for the October seventh
terror attacks on Israel and calling for the group to disarm. Meanwhile,
you and officials say the worst case scenario of starvation
in Gaza is taking place. Scott Paul is the director
(11:10):
of Peace and Security at Oxfam America.
Speaker 14 (11:12):
These Billie authorities need to unlock this in every step
of the way if they want.
Speaker 13 (11:16):
To prevent this this famine from being formally declared and
this crisis from deepening to unfathomable levels.
Speaker 12 (11:22):
Scott Paul with the global confederation ox FAM that works
to end poverty and injustice. Global News twenty four hours
a day and whenever you want it with the Bloomberg
News Now Michael Barr, and this is Bloomberg. Karen.
Speaker 2 (11:35):
All right, Michael Barr, thank you time now for the
Bloomberg Sports Update, brought to you by Flushing Bank. Can here,
Sean Stanshower, John can Learning.
Speaker 4 (11:47):
Good morning.
Speaker 14 (11:47):
There the baseball trade deadline six o'clock today. The Mets
just traded for two relief pitchers and the Yankees out
of the reserve outfield.
Speaker 4 (11:54):
Y'reing the Yanks then host of the rais.
Speaker 14 (11:56):
There was one run scored in the first seven and
a half it is, and then eight runs were.
Speaker 4 (12:00):
Scored in the next three and a half.
Speaker 14 (12:03):
Three times. The Yankees tied the game with a Trent
Christiaan momron of the eighth and Anthony Volpi homer with
one out of the ninth, and a Cody Bellinger RBI
triple in the tenth. The game went to the eleventh inning.
Speaker 4 (12:13):
At Sampa Bay.
Speaker 14 (12:14):
Bach put the winning run a third in the new
Yankee Ryan McMahon was at the plee.
Speaker 8 (12:19):
Now now they don't have the butt and that forces
the Rays to bring the infield in all one this
year too. It five by Kaluka hellt it go over his.
Speaker 4 (12:28):
Head and the Yankees win.
Speaker 6 (12:31):
Chess Chiz will score. McMahon with the walk off signal
had the Yankees and a lil Game win just one
of eleven in his boss score.
Speaker 4 (12:41):
Five to four.
Speaker 14 (12:42):
Means network Yankees four games behind Toronto, who won nine
to eight in Baltimore. The Red Sox game behind the
Yanks a thirteen to one route in Minnesota. The Mets
in San Diego had just three heads lost five nothings
of the road trips, so the Mets sweep the Giants
and then get swept by the Padres.
Speaker 4 (12:59):
Mets stage just ahead.
Speaker 14 (13:00):
The Phillies lost biggest trade of the day Arizona, since
slugging third basement Uhennio Suarez to Seattle, where he played before.
Asuarez has thirty six home runs. The Mets got submariner
Tyler Rogers from the Giants. His identical twin brother was
also dealt by the Reds to the Pirates, and the
Mets also acquired another reliever, Ryan Helsley from Minnesota. Mets
(13:22):
said that he's still looking for a center fielder. The Yankees,
with the pickup of Austin Slater from the White Sox,
have now added three position.
Speaker 4 (13:29):
Players but no pitchers. They could also use help in.
Speaker 14 (13:32):
Their Bullpen at WNBA rematch of last year's finals in Minnesota.
The Lakes beat the Liberty one hundred to ninety three
Minnesota a league best twenty three and five.
Speaker 4 (13:41):
John Stashawa, Bloomberg Sports Karen Tacle.
Speaker 2 (13:44):
All right, John, thank you. On Bloomberg Daybreak is brought
to you by Flushing Bank. Life's more rewarding with Flushing
Banks complete cash rewards program for personal and business accounts
so twenty nine in New York metro locations. There's nothing
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Speaker 1 (14:02):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 3 (14:12):
Good morning, I'm Nathan Hager on a really good morning
for big tech. Following big results and the latest earnings reports.
Both Microsoft and Meta platforms are surging pre market after
results suggesting the arms race and artificial intelligence spending maybe
starting to pay off. Joining us now as someone who's
been sounding the drumbeat on the promise of Ai Dan Ives,
Global head of Tech Research at Webbush Securities, you must
(14:36):
be feeling really good this morning, Dan, and I want
to start right off with your latest note on Microsoft.
You're raising your price target on the stock to six
twenty five. Microsoft's already poised to become another four trillion
dollar company this morning. What gets Microsoft to five trillion
in your view?
Speaker 4 (14:54):
Good morning?
Speaker 5 (14:55):
Yeah, good morning. Look me, I mean me and you
have to us for years. I think this is a
watershed moment, not just some Microsoft for Meta and what
it means for big tech when it comes to the
AI revolution hitting its next stiege or growth. Look, Microsoft,
I believe Microsoft and Nvidia will be five trillion dollars
(15:16):
mark caps in twenty twenty six. We are just starting
this next stage of the AI revolution.
Speaker 3 (15:24):
We saw thirty nine percent sales jump, in particular for
Azure Cloud. A big piece of this as well, is
that kind of growth sustainable, those kinds of solid double
digit sales returns.
Speaker 5 (15:38):
Look, these are jaw dropping numbers. I mean when you
think about Cloud and even some of the strength that
we are expecting coming in, it's one where enterprises are
lining up with Microsoft given what we're seeing in AI now, Look,
will that eventually moderate? Of course, what this essentially means
is Microsoft is was creating another company within Microsoft in
(16:05):
terms of AI that I believe right now, you know
they're kind of leading the race when it comes to cloud,
ahead of Amazon of course, you know Google.
Speaker 3 (16:15):
In terms of what enterprise customers are getting out of
that race. Of course, we've seen the strides they've made
with Microsoft Copilot. What other use cases do you see
Microsoft putting out there for a broader market?
Speaker 5 (16:30):
Look, I think it's across verticals. I mean that's why
you're seeing customers line up and look at Microsoft there
now for cap backs. Originally you're an eighty billion, now
you're one hundred and twenty million. So as they're expanding,
as you saw Alphabet do the same saying this arms
race is just starting. But I said, like, look, this
is a Scottish shoff for a quarter from Microsoft, but
(16:52):
it's not the end. It's actually the beginning of the second, third,
fourth derivatives playing out for AI and then bullish for tech.
Speaker 3 (17:02):
So do you see Microsoft sort of building a moat
around what it's doing with AI or could some of
its competitors chip away at what they're doing?
Speaker 4 (17:10):
Yeah, we don't use as.
Speaker 5 (17:11):
A zero some game, and that's why we're bullish on
Amazon and Google, and of course you're in New acad
Oracle as well. But on the enterprise that's their backyard,
that's where they dominate. And I think the Della and
Microsoft they're playing almost another game now than everyone else.
And that's what you're seeing in these numbers, execution flawless.
(17:34):
They obviously will get wet in the velvet ropes to
the Fortune Mark op cloud with the media, but it's
just the beginning in terms of the next stage of
cloud and AI growth.
Speaker 3 (17:46):
In terms of what we're seeing out of meta platforms
as well, Dan, I wonder what you make of this
personal intelligence or personal super intelligence strategy that Mark Zuckerberg's
putting out there with his AI vision.
Speaker 5 (18:00):
I mean, that's how you're going to get to a
four digit stock because I think Zuckerberg right now Wartimes
CEO focused on really going to full sort of end
to end when it comes to the consumer AI revolution.
What's amazing about these numbers is just the advertising growth,
(18:21):
even the lack of spend there. I mean, this is
a company that's transforming right in front of us, and
they are going to be front and center as a
modernization when it comes to the consumer piece of AI.
Speaker 4 (18:34):
I love that you call it a lack of spend.
Speaker 3 (18:36):
I mean, we've seen him putting out, you know, one
hundred plus million dollars pay packages for some of these
people that he's poached from other companies to join a
super intelligence team. He's talking about sixty six to seventy
two billion dollars in AI spend. Is that the kind
of level that investors can stomach.
Speaker 5 (18:55):
Look, eventually it will moderate, okay, But but if you
look at even just from an investment perspective, in advertising,
you just forget about some of those pay packages. I mean,
what they're what you're seeing on the advertising growth is
is really impressed and in terms of like what they're
spending there in capax, and they're different we're seeing in
big tech. Look, this is an arms race, and no
(19:18):
tech company wants to be on the outside looking in.
And that's what's so impressive about what Mett is doing.
When Microsoft's doing solid alphabet and I think you'll see
what Amazon as well. I mean that this is but
it's not just about Max seven. It will spread to
the rest of tech.
Speaker 4 (19:36):
Well.
Speaker 3 (19:37):
In our last minute or so, let's get to the
companies that we are going to be hearing from after
the bell today. You mentioned Amazon, We're going to hear
from Apple as well. It seems like Apple has been
kind of falling behind in terms of where they're going
with AI.
Speaker 4 (19:51):
Yeah.
Speaker 5 (19:51):
Man, I think that's been the frustration. Right, you have
the biggest install based in the world. They need you know,
I continue to bleed Perplexity is the accusdition they need
to meet. Is not going to happen internally. But I
think when it choose to look at Amazon, you can
say Amazon a year ago is nowhere now aggressively focused
on the AWS and mod tide and when it comes
to asapoun cloud because we're talking about what's going to
(20:14):
be a tech bullmarker for the next few years, biggest
techt theme we've seen in the last forty to fifty
years to fourth Industrial Revolution. Apple can't be on the
outside looking in.
Speaker 3 (20:25):
Just quickly you've called for Apple to buy Perplexity and
take its AI out from in house. Do you see
Tim Cook leaning that way toward an acquis acquisitive stance.
Speaker 5 (20:35):
Look, you've never done acquisitions really before outside beets, but
times are changing. You can't be on a park bench
drinking lemonade, while the AI Revolution.
Speaker 10 (20:44):
Passing you Bay.
Speaker 2 (20:46):
This is Bloombergy day Break, your morning podcast on the
stories making news from Wall Street to Washington and beyond.
Speaker 3 (20:53):
Look for us on your podcast feed by six am
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Speaker 2 (20:59):
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Speaker 3 (21:13):
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Speaker 2 (21:19):
And don't forget to subscribe to Bloomberg News Now. It's
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Speaker 4 (21:32):
And I'm Nathan Hager.
Speaker 3 (21:33):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg Day
Ray
Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2 (00:10):
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, let's begin with blowout earnings from a pair
of tech heavyweights, Microsoft and Meta Platforms.
Speaker 4 (00:20):
Let's begin with Microsoft.
Speaker 3 (00:22):
Those shares are trading it at all time high and
if that holds, the tech giant would become the second
company in the world to reach a four.
Speaker 4 (00:28):
Trillion dollar valuation.
Speaker 3 (00:30):
Microsoft's latest results confirm it is leading in artificial intelligence
with a thirty nine percent rise in sales for its
cloud business. Dan Ives is Global head of Tech Research
at Webbush Securities.
Speaker 4 (00:42):
Massive beat on cloud.
Speaker 5 (00:44):
You see more and more of these use cases, these hyperscalers,
those are the best indicators.
Speaker 6 (00:49):
That just shows where the next spending in AI is gone.
Speaker 4 (00:52):
And that's why right now, if you're a tech.
Speaker 2 (00:53):
Bear, you're in hibernation mode.
Speaker 4 (00:56):
In that cave and you can't find AI in the spreadsheet.
Speaker 3 (00:59):
Dan Ives, a Webbush has raised his twelve month price
target on Microsoft to six hundred and twenty five dollars.
Right now, the shares are up more than eight percent
in the pre market trading around five hundred and fifty
six dollars a share.
Speaker 2 (01:10):
Well, Nathan Shares a Meta they're also a surging They're
up almost twelve percent in early trading. The Facebook parent
reporter results at beat estimates. Metta is also taking advantage
of strong advertising and stepping up spending next year, executives
saying now is the time to seize on investment opportunities
in AI. Man Deep Singh is senior Tech analyst for
Bloomberg Intelligence.
Speaker 7 (01:31):
There is a sequential acceleration in ad impressions as well
as at pricing growth, and to my mind, that is
a sign of them applying AI to boost engagement. Obviously,
the user growth has been almost the same every quarter,
you know, four to five percent, So the fact that
impressions grew eleven percent is a sign that people are
(01:53):
spending more time on their family of apps.
Speaker 2 (01:55):
Man Deep Singh at Bloomberg Intelligences Meta is also forecasting
third order revenue that beat Wall Street estimates.
Speaker 7 (02:02):
Well.
Speaker 3 (02:02):
Karen, One big tech stock is not participating in the rally.
This morning, Shares of Qualcomm are down more than five
percent in the pre market. The biggest maker of chips
that run smartphones, reported at lackluster growth. That's feeling concerns
that tariffs will take a toll on Qualcomm and the
broader chip industry.
Speaker 2 (02:19):
Well up next, Nathan, we get more earnings from big
tech after the bell results come in from Apple and Amazon.
Bloomberg's Time Busby tells us what to expect from the
iPhone maker.
Speaker 8 (02:29):
Despite this period traditionally being one of the slowest of
the year before it releases new products for the holidays.
The iPhone maker is projected to report modest sales growth
after adjusting some of its manufacturing to allset the impact
of the Trump tariffs. But Wallstreet is expecting continued sluggish
demand for gadgets like its TV set top boxes and
the Vision Pro mixed reality headset, and investors will want
(02:51):
to hear more about its AI strategy after more of
its AI talent was recently poached by Meta. Bloomberg consensus
calls for revenue of eighty nine point three billion on
Ernix per share of a dollar forty three Tom buzzby
Bloomberg Radio.
Speaker 4 (03:04):
Okay, Tom, thank you know.
Speaker 3 (03:05):
When it comes to auto earnings, shares of Ford are
down more than one percent in early training. The automaker's
warning profit. We'll see a sharp drop on the fallout
from President Trump's tariffs. We spoke with Ford Motor CEO
Jim Farley.
Speaker 5 (03:19):
Well, we're working with the administration is to take that.
Speaker 4 (03:22):
Layered tariff use. The authors have their own tear.
Speaker 3 (03:25):
Plus or subject to all these other tariffs.
Speaker 5 (03:27):
We're working with Commerce and the Trump administration to minimize
our tariff expense so that we can get more competitive.
Speaker 3 (03:35):
Ford's CEO, Jim Farley says adjusted earnings could fall as
much as thirty six percent. That's due in part to
a net tariff impact of two billion dollars. That's about
five hundred million more than the company previously expected.
Speaker 2 (03:47):
Well, Nathan, let's turn to the economy. Now, the Federal
Reserve to be specific, Despite pressure from the White House,
the Fed kept its key interest rate unchanged yesterday. Is
Central Banks said growth moderated early this year and that
uncertainty remains elevated. Here's how Vecher J. Powell put it.
Speaker 9 (04:04):
Changes to government policies continue to evolve and their effects
on the economy remain uncertain. Higher tariffs have begun to
show through more clearly to prices of some goods, but
their overall effects on economic activity and inflation remain to
be seen.
Speaker 2 (04:18):
Vetcher J. Powell also answered questions about two members of
the Monetary Policy Committee dissenting. It's the first time that's
happened in over thirty years. Governors Michelle Bowman and Christopher
Waller both voted for a quarter point rate cut.
Speaker 3 (04:30):
Well Now, Karen details on a hot and cold relationship
between wall Street and the White House. JP Morgan Chase CEO,
Jamie Diamond and President Trump are talking again. Bloomberg's John
Tucker joins us in New York with the details. It's
been a while, John, Good morning. Yeah, it's kind of
warming up once again. We're now learning that Diamond met
with President Trump at the Oval Office last week to
(04:51):
talk about the economy, trade, and financial regulation. Mister Trump
picked Diamonds bring on the prospect of lowering interest rates,
and they also touched on the administration's pushed to impose tariffs.
The renewed dialogue Ashley began in June after years of tension.
You'll recall back in twenty twenty three, Trump called Diamond
highly overrated. If the Diamond urged business leaders to back
(05:13):
Nikki Haley in the Republican primary, he also accused JP
Morgan of discriminating against conservatives. When the President's April tariff
announcements sent markets plunging, Diamond set a trade war risk
plunging the economy into recession. Well, the President did take notice.
He reportedly cited Diamond's comments as reason for pausing the tariffs.
(05:33):
In New York Ime, John Tucker Bloomberg.
Speaker 2 (05:35):
Radio, All right, John, thank you now to the latest
on trade. With one day to go until his tariff deadline,
President Trump has made a flurry of deals and demands.
Last night, he announced a fifteen percent tariff on South
Korean imports, including cars, that matches the rate Japan agreed
to last week, and beget more with Bloomberg's Denny Thomas
and Seoul.
Speaker 10 (05:55):
Seul has been bagging behind in all these street talks
because of the political chaos had here, and as we
were hitting up to this August to US deadline, it
was it was pretty uncertain whether we would reach it
data not.
Speaker 2 (06:07):
And Bloomberg's Denny Thomas reports the agreement also includes a
three hundred and fifty billion dollar fund for South Korea
to invest in the US.
Speaker 4 (06:14):
And the South Korea Deal.
Speaker 3 (06:15):
Karen comes after news on India, President Trump says he'll
impost twenty five percent tariffs on that country's exports, even
though that country was one of the first to engage
in trade talks of the US. Nisa Biswal is a
partner at the Asia Group.
Speaker 11 (06:27):
For the President to come in with a very hardball
tactic of announcing twenty five percent tariffs as well as
penalties for you know, Russian oil and gas and sports,
et cetera, I think is a little bit surprising, and
certainly to our Indian friends, they're kind of shocked because
(06:48):
they thought that they were working in good faith and we're.
Speaker 2 (06:51):
Close to having a deal.
Speaker 4 (06:52):
Nisha biswell with the Asia Group.
Speaker 3 (06:54):
President Trump says India's tariffs are among the highest in
the world, but his team is still conducting talks, so
there could be more to come on that front.
Speaker 2 (07:01):
Meantime, Nathan Commerce Secretary Howard Lutnek says the US has
made deals with Thailand and Cambodia. Those details came in
an interview with Fox News. He didn't elaborate on those agreements.
President Trump had used trade talks to urge both countries
to agree to a ceasefire. In recent days, the US
has also signed a trade deal with Pakistan. And here's
Pakistan's finance minister.
Speaker 8 (07:21):
I think we have a come long way for way
we were and where we are today.
Speaker 10 (07:26):
In terms of our overall strategic partnership between Pakistan and
the United.
Speaker 2 (07:31):
States, and Pakistan's finance minister says it's trade deal with
the US will boost Pakistan's oil reserves.
Speaker 3 (07:37):
Still caring, a deal with Mexico and Canada remains elusive. Today,
President Trump plans to speak with Mexico's President Claudia Shinbaum
as she looks to avoid a thirty percent tariff. Shinbaum
met yesterday with Republican Congressman Don Bacon and Democrat Rokana.
They came away optimistic about the two countries expanding trade
and security cooperation. At the same time, President Trump is
warning it's getting harder to make a deal with Canada.
(08:00):
He posted as much on social media after Canadian Prime
Minister Markcarney announced that he'll recognize a Palestinian state at
the UN Summit in September.
Speaker 2 (08:08):
Well, Nathan back here in the US, Dangerous weather is
in focus again today. The Northeast heat wave is receding,
but a new weather threat is on the way heavy
rain and flash flooding in Bloomberg meteor relogist Craig Allen
has the details.
Speaker 6 (08:22):
There is a category three out of four threat for
excessive rainfall running right up from Washington, d c. Up
ninety five through Baltimore, Philadelphia to about the New York
City area and the worst of the rain will be
falling during the late Thursday afternoon into Thursday evening commute,
and possibly even into Friday morning. This threat, if it materializes,
(08:42):
will impact eighteen thousand square miles and the possibility of
over twenty two million people impacted by this rainfall for
the late afternoon and next twenty four hours.
Speaker 2 (08:54):
And that's Bloomberg meteorologist Craig Allen, who says thunderstorms could
accompany the rain, resulting in as much as two two
inches of rainfall per hour.
Speaker 3 (09:02):
And a political story to end this one, Karen former
Vice President Kamala Harris says she will not run for
California governor next year.
Speaker 4 (09:10):
There had been speculations she would.
Speaker 3 (09:12):
Analys say it leaves open the possibility Harris mounts a
third run for the White House in twenty twenty eight.
Speaker 2 (09:21):
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.
Speaker 4 (09:27):
Michael, good Morning, Good morning, Karen.
Speaker 12 (09:29):
Authorities say the man who killed four people at a
Manhattan office building bought the rifle he used in the
attack and the car he drove across the country from
his supervisor at a Las Vegas casino. Police say Shane
Tomorrow fatally shot four people on Monday before killing himself.
New York Governor Kathy.
Speaker 13 (09:47):
Hokle there's nothing that can justify, you know, the intentionality
behind someone who travels across many states, you know, loads
up his vehicle with a weapon of mass destruction, intent
on slaughtering people. Also, he knew exactly what he was doing.
Speaker 12 (10:02):
And the first of victims was laid to rest yesterday.
Julia Hyman, who worked for Roudent Management, was twenty seven
years old. Today, funeral services will take place for the
NYPD officer killed in the attack, Didero Islam. About two
dozen people were taken to the hospital after a Delta
Airlines flight encountered severe turbulence that forced it to make
(10:25):
an emergency landing in Minneapolis. The airline says Delta Flight
fifty six was heading from Salt Lake City to Amsterdam.
Russia attack Key with a barrage of drones and missiles overnight,
in defiance of President Donald Trump's calls for the Kremlin
to reach a truce with the Ukraine. The bombardment killed
at least six people, including a child, and injured more
(10:47):
than fifty. Pressure is increasing globally to end the war
in Gaza. More than twenty Arab and Muslim countries have
issued a joint call condemning Hamas for the October seventh
terror attacks on Israel and calling for the group to disarm. Meanwhile,
you and officials say the worst case scenario of starvation
in Gaza is taking place. Scott Paul is the director
(11:10):
of Peace and Security at Oxfam America.
Speaker 14 (11:12):
These Billie authorities need to unlock this in every step
of the way if they want.
Speaker 13 (11:16):
To prevent this this famine from being formally declared and
this crisis from deepening to unfathomable levels.
Speaker 12 (11:22):
Scott Paul with the global confederation ox FAM that works
to end poverty and injustice. Global News twenty four hours
a day and whenever you want it with the Bloomberg
News Now Michael Barr, and this is Bloomberg. Karen.
Speaker 2 (11:35):
All right, Michael Barr, thank you time now for the
Bloomberg Sports Update, brought to you by Flushing Bank. Can here,
Sean Stanshower, John can Learning.
Speaker 4 (11:47):
Good morning.
Speaker 14 (11:47):
There the baseball trade deadline six o'clock today. The Mets
just traded for two relief pitchers and the Yankees out
of the reserve outfield.
Speaker 4 (11:54):
Y'reing the Yanks then host of the rais.
Speaker 14 (11:56):
There was one run scored in the first seven and
a half it is, and then eight runs were.
Speaker 4 (12:00):
Scored in the next three and a half.
Speaker 14 (12:03):
Three times. The Yankees tied the game with a Trent
Christiaan momron of the eighth and Anthony Volpi homer with
one out of the ninth, and a Cody Bellinger RBI
triple in the tenth. The game went to the eleventh inning.
Speaker 4 (12:13):
At Sampa Bay.
Speaker 14 (12:14):
Bach put the winning run a third in the new
Yankee Ryan McMahon was at the plee.
Speaker 8 (12:19):
Now now they don't have the butt and that forces
the Rays to bring the infield in all one this
year too. It five by Kaluka hellt it go over his.
Speaker 4 (12:28):
Head and the Yankees win.
Speaker 6 (12:31):
Chess Chiz will score. McMahon with the walk off signal
had the Yankees and a lil Game win just one
of eleven in his boss score.
Speaker 4 (12:41):
Five to four.
Speaker 14 (12:42):
Means network Yankees four games behind Toronto, who won nine
to eight in Baltimore. The Red Sox game behind the
Yanks a thirteen to one route in Minnesota. The Mets
in San Diego had just three heads lost five nothings
of the road trips, so the Mets sweep the Giants
and then get swept by the Padres.
Speaker 4 (12:59):
Mets stage just ahead.
Speaker 14 (13:00):
The Phillies lost biggest trade of the day Arizona, since
slugging third basement Uhennio Suarez to Seattle, where he played before.
Asuarez has thirty six home runs. The Mets got submariner
Tyler Rogers from the Giants. His identical twin brother was
also dealt by the Reds to the Pirates, and the
Mets also acquired another reliever, Ryan Helsley from Minnesota. Mets
(13:22):
said that he's still looking for a center fielder. The Yankees,
with the pickup of Austin Slater from the White Sox,
have now added three position.
Speaker 4 (13:29):
Players but no pitchers. They could also use help in.
Speaker 14 (13:32):
Their Bullpen at WNBA rematch of last year's finals in Minnesota.
The Lakes beat the Liberty one hundred to ninety three
Minnesota a league best twenty three and five.
Speaker 4 (13:41):
John Stashawa, Bloomberg Sports Karen Tacle.
Speaker 2 (13:44):
All right, John, thank you. On Bloomberg Daybreak is brought
to you by Flushing Bank. Life's more rewarding with Flushing
Banks complete cash rewards program for personal and business accounts
so twenty nine in New York metro locations. There's nothing
more rewarding visiting Flushingbank dot com member fdice.
Speaker 1 (14:02):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 3 (14:12):
Good morning, I'm Nathan Hager on a really good morning
for big tech. Following big results and the latest earnings reports.
Both Microsoft and Meta platforms are surging pre market after
results suggesting the arms race and artificial intelligence spending maybe
starting to pay off. Joining us now as someone who's
been sounding the drumbeat on the promise of Ai Dan Ives,
Global head of Tech Research at Webbush Securities, you must
(14:36):
be feeling really good this morning, Dan, and I want
to start right off with your latest note on Microsoft.
You're raising your price target on the stock to six
twenty five. Microsoft's already poised to become another four trillion
dollar company this morning. What gets Microsoft to five trillion
in your view?
Speaker 4 (14:54):
Good morning?
Speaker 5 (14:55):
Yeah, good morning. Look me, I mean me and you
have to us for years. I think this is a
watershed moment, not just some Microsoft for Meta and what
it means for big tech when it comes to the
AI revolution hitting its next stiege or growth. Look, Microsoft,
I believe Microsoft and Nvidia will be five trillion dollars
(15:16):
mark caps in twenty twenty six. We are just starting
this next stage of the AI revolution.
Speaker 3 (15:24):
We saw thirty nine percent sales jump, in particular for
Azure Cloud. A big piece of this as well, is
that kind of growth sustainable, those kinds of solid double
digit sales returns.
Speaker 5 (15:38):
Look, these are jaw dropping numbers. I mean when you
think about Cloud and even some of the strength that
we are expecting coming in, it's one where enterprises are
lining up with Microsoft given what we're seeing in AI now, Look,
will that eventually moderate? Of course, what this essentially means
is Microsoft is was creating another company within Microsoft in
(16:05):
terms of AI that I believe right now, you know
they're kind of leading the race when it comes to cloud,
ahead of Amazon of course, you know Google.
Speaker 3 (16:15):
In terms of what enterprise customers are getting out of
that race. Of course, we've seen the strides they've made
with Microsoft Copilot. What other use cases do you see
Microsoft putting out there for a broader market?
Speaker 5 (16:30):
Look, I think it's across verticals. I mean that's why
you're seeing customers line up and look at Microsoft there
now for cap backs. Originally you're an eighty billion, now
you're one hundred and twenty million. So as they're expanding,
as you saw Alphabet do the same saying this arms
race is just starting. But I said, like, look, this
is a Scottish shoff for a quarter from Microsoft, but
(16:52):
it's not the end. It's actually the beginning of the second, third,
fourth derivatives playing out for AI and then bullish for tech.
Speaker 3 (17:02):
So do you see Microsoft sort of building a moat
around what it's doing with AI or could some of
its competitors chip away at what they're doing?
Speaker 4 (17:10):
Yeah, we don't use as.
Speaker 5 (17:11):
A zero some game, and that's why we're bullish on
Amazon and Google, and of course you're in New acad
Oracle as well. But on the enterprise that's their backyard,
that's where they dominate. And I think the Della and
Microsoft they're playing almost another game now than everyone else.
And that's what you're seeing in these numbers, execution flawless.
(17:34):
They obviously will get wet in the velvet ropes to
the Fortune Mark op cloud with the media, but it's
just the beginning in terms of the next stage of
cloud and AI growth.
Speaker 3 (17:46):
In terms of what we're seeing out of meta platforms
as well, Dan, I wonder what you make of this
personal intelligence or personal super intelligence strategy that Mark Zuckerberg's
putting out there with his AI vision.
Speaker 5 (18:00):
I mean, that's how you're going to get to a
four digit stock because I think Zuckerberg right now Wartimes
CEO focused on really going to full sort of end
to end when it comes to the consumer AI revolution.
What's amazing about these numbers is just the advertising growth,
(18:21):
even the lack of spend there. I mean, this is
a company that's transforming right in front of us, and
they are going to be front and center as a
modernization when it comes to the consumer piece of AI.
Speaker 4 (18:34):
I love that you call it a lack of spend.
Speaker 3 (18:36):
I mean, we've seen him putting out, you know, one
hundred plus million dollars pay packages for some of these
people that he's poached from other companies to join a
super intelligence team. He's talking about sixty six to seventy
two billion dollars in AI spend. Is that the kind
of level that investors can stomach.
Speaker 5 (18:55):
Look, eventually it will moderate, okay, But but if you
look at even just from an investment perspective, in advertising,
you just forget about some of those pay packages. I mean,
what they're what you're seeing on the advertising growth is
is really impressed and in terms of like what they're
spending there in capax, and they're different we're seeing in
big tech. Look, this is an arms race, and no
(19:18):
tech company wants to be on the outside looking in.
And that's what's so impressive about what Mett is doing.
When Microsoft's doing solid alphabet and I think you'll see
what Amazon as well. I mean that this is but
it's not just about Max seven. It will spread to
the rest of tech.
Speaker 4 (19:36):
Well.
Speaker 3 (19:37):
In our last minute or so, let's get to the
companies that we are going to be hearing from after
the bell today. You mentioned Amazon, We're going to hear
from Apple as well. It seems like Apple has been
kind of falling behind in terms of where they're going
with AI.
Speaker 4 (19:51):
Yeah.
Speaker 5 (19:51):
Man, I think that's been the frustration. Right, you have
the biggest install based in the world. They need you know,
I continue to bleed Perplexity is the accusdition they need
to meet. Is not going to happen internally. But I
think when it choose to look at Amazon, you can
say Amazon a year ago is nowhere now aggressively focused
on the AWS and mod tide and when it comes
to asapoun cloud because we're talking about what's going to
(20:14):
be a tech bullmarker for the next few years, biggest
techt theme we've seen in the last forty to fifty
years to fourth Industrial Revolution. Apple can't be on the
outside looking in.
Speaker 3 (20:25):
Just quickly you've called for Apple to buy Perplexity and
take its AI out from in house. Do you see
Tim Cook leaning that way toward an acquis acquisitive stance.
Speaker 5 (20:35):
Look, you've never done acquisitions really before outside beets, but
times are changing. You can't be on a park bench
drinking lemonade, while the AI Revolution.
Speaker 10 (20:44):
Passing you Bay.
Speaker 2 (20:46):
This is Bloombergy day Break, your morning podcast on the
stories making news from Wall Street to Washington and beyond.
Speaker 3 (20:53):
Look for us on your podcast feed by six am
Eastern each morning, on Apple, Spotify, or anywhere else you listen.
Speaker 2 (20:59):
You can also listen live each morning starting at five
am Wall Street Time on Bloomberg eleven three to zero
in New York, Bloomberg in ninety nine to one in Washington,
Bloomberg ninety two nine in Boston, and nationwide on serious
XM Channel one twenty one.
Speaker 3 (21:13):
Plus listen coast to coast on the Bloomberg Business app
now with Apple CarPlay and Android Atuto interfaces.
Speaker 2 (21:19):
And don't forget to subscribe to Bloomberg News Now. It's
the latest news whenever you want it in five minutes
or less. Search Bloomberg News Now on your favorite podcast
platform to stay informed all day long. I'm Karen Moscow.
Speaker 4 (21:32):
And I'm Nathan Hager.
Speaker 3 (21:33):
Join us again tomorrow morning for all the news you
need to start your day right here on Bloomberg Day
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