October 22, 2025 • 15 mins
On today's podcast:
1) Netflix shares fell in premarket trading on Wednesday after the streaming-video company reported third-quarter results it said were hurt by a tax dispute with Brazil. The results came in the wake of reports that Netflix and Comcast are among the companies weighing bids for parts of Warner Bros Discovery. Warner's board will evaluate “a broad range” of options, including a planned split-up of the company by mid-2026, an outright sale or separate deals for its studios and streaming or cable-TV units, according to a statement Tuesday. Separately, shares of Texas Instruments fell after the chipmaker gave an outlook that is weaker than expected, indicating that some customers are slowing orders as they navigate mounting trade tensions.
2) Anthropic PBC is in discussions with Alphabet Inc.’s Google about a deal that would provide the artificial intelligence company with additional computing power valued in the high tens of billions of dollars, according to people familiar with the matter. The plan, which has not been finalized, involves Google providing cloud computing services to Anthropic, according to the people, who asked not to be named because the information is private. The deal will allow Anthropic to use Google’s tensor processing units, or TPUs — the company’s chips that are custom designed to accelerate machine learning workloads, one of the people said. Google is a previous investor in, and cloud provider for, Anthropic.
3) President Trump predicted an upcoming meeting with his Chinese counterpart, Xi Jinping, would yield a “good deal” on trade — while also conceding that the highly anticipated talks may not happen. While Trump foresaw the sit-down as being “very successful,” he said the possibility remains that it could fail to materialize. The two leaders are scheduled to meet later this month at the Asia-Pacific Economic Cooperation summit in South Korea.
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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):
Karen, we begin with some big tech earnings disappointments, starting
with Netflix. Those shares are down nearly seven percent in
early trading. The world's most valuable entertainment company posted quarterly
operating income of almost three hund a quarter billion dollars
that was about four hundred million below analyst estimates. Netflix
says a tax dispute with Brazil cut into its third
(00:37):
quarter results. On the company conference call, Netflix co CEO
Ted Sarandos address speculation the company's weighing bids for parts
of Warner Brothers Discovery.
Speaker 4 (00:46):
We've been very clear in the past that we have
no interest in owning legacy media networks, so there is
no change there. But in general, we believe that we
can be and we will be choosy. We have a
great business. We're predominantly focused on growing organically, investing aggressively
and responsibly into the growth, and returning access cash flow
to shareholders through our shot to share repurchase.
Speaker 3 (01:09):
Netflix co CEO Ted Sarando says the company had to
pay about six hundred and nineteen million dollars to settle
a multi year tax dispute with Brazil going back to
twenty twenty two. He says the company would have beaten
forecasts if not for that expense.
Speaker 2 (01:21):
Nathan. Another earnings disappointment has shares of Texas Instruments down
almost nine percent. The biggest maker of analog chips gave
a lackluster forecast for the current period, adding to concern
that a ship industry recovery is sputtering well.
Speaker 3 (01:35):
Staying in tech, Karen Bloomberg News has learned Google is
in talks for a mega deal with artificial intelligence company
and Thropic. Let's get the very latest on that with
Bloomberg's John Tucker.
Speaker 5 (01:45):
John, good morning, Good morning, Nathan. You have the race
for AI dominance may have gotten more intense. If this
deal goes through, Google would provide Anthropic with computing power
worth tens of billions of dollars. It would allow Anthropic
to use Google's chip's custom designed to accelerate machine learning workloads,
and it would further cement the relationship between Google and
(02:07):
the AI startup founded in twenty twenty one by former
Open Ai employees San Francisco based Anthropic, best known for
its Claud family of large language models, which compete directly
with Open Ai. Google has previously invested about three billion
dollars in Anthropic and Google parent Alphabet up one point
(02:27):
two percent pre market, New York. I'm John Tucker, Bloomberg Radio.
Speaker 2 (02:31):
All right, John, thank you. We turned now to commodities,
where gold and silver are rebounding from yesterday's selloff. Gold
fell nearly six percent yesterday for its biggest inter day
drop in more than a dozen years. At one point,
silver was down almost nine percent. Mike mcgloone covers commodities
for Bloomberg Intelligence.
Speaker 6 (02:50):
Right now, it's just a little bit of profit taking,
But it's what's happening in gold that's very disconcerting. As
of yesterday, it was up sixty six percent in the year.
That put it among the top four of the last
one hundred years, with only nineteen seventy nine, seventy three,
and seventy four ahead of it, So it's very expensive.
At the same time, crude oil was down about twenty percent.
(03:11):
That disparity around eighty six percent has never happened.
Speaker 2 (03:14):
It's never been that extreme in Bloombergy Intelligence Mike McGlone
checking prices of gold right now Comec's gold is down
about two tenths of up percent at four thousand, one
hundred dollars announced. Silver is down about a third of
up percent.
Speaker 3 (03:28):
Let's get to the latest, Karen. On the trade front,
President Trump is sending a mixed message ahead of a
possible meeting with Chinese President Shi Jin Pink During a
White House rose guard in lunch with Senate Republicans, the
President said the terifrate on Chinese exports would be about
one hundred and fifty five percent by November first, if
they don't make a deal.
Speaker 7 (03:46):
Now, we're going to have a fair deal. I think
we're going to have a very successful meeting. Certainly, there
are a lot of people that are waiting for it.
Maybe it won't happen. Maybe it won't happen. Things can
happen where for instance, maybe somebody will say I don't
want to meet. It's too nasty, But it's really not nasty.
It's just business.
Speaker 3 (04:04):
President Trump says he wants to make a good deal
with China, but he says it has to be fair.
Treasury Secretary Scott Bessett plans to meet with his Chinese
counterpart over the weekend before the talks between Presidents Trump
and she. Those are expected at the APEX summit in
South Korea, though the date and time have not yet
been announced.
Speaker 2 (04:21):
Nathan India and the US are reportedly near a trade
deal that could lower tariffs on Indian exports to fifteen
to sixteen percent from about fifty percent. The newspaper is
reporting India may agree to gradually reduce its imports of
Russian oil as part of the deal and allow the
US to export more non genetically modified corn and soymeal.
Speaker 3 (04:41):
Overnight, Karen Russia launched multiple drone and missile strikes on Ukraine,
as a planned second summit between President Trump and Russian
President Vladimir Putin is thrown into jeopardy. The President address
that possible meeting yesterday.
Speaker 8 (04:56):
I don't want to have a wasted meeting. I don't
want to have a wasted time. So I'll see what happened.
But when I said, go to the line, go to
the line of the battle on the battlefield lines, and
you pull back and you go home, and everybody takes
some time off because you have two countries that are
killing each other, two countries are losing five to seven
thousand soldiers a week, So we'll see what happens. It's
(05:19):
we haven't made a determination.
Speaker 3 (05:20):
Ar President Trump had said he planned to meet with
President Putin in Budapest in the coming weeks.
Speaker 2 (05:26):
Now, Nathan to a report that's raising conflict of interest
questions at the White House. According to The New York Times,
President Trump is demanding the Justice Department pay him about
two hundred and thirty million dollars for past investigations against him.
That includes the probes into Russian interference in the twenty
sixteen campaign and the FBI search of his Mara Lago home.
(05:47):
President Trump appeared to acknowledge the report when he was
asked about it in the Oval Office.
Speaker 8 (05:52):
We have numerous cases having to do with the fraud
of the election, the twenty twenty election, and because of
every thing that we found out, I guess they owe
me a lot of money.
Speaker 2 (06:03):
By President Trump says if he gets the money, he
would give it to charity or use it to restore
the White House. Any decisions about paying the president's claims
would be made by senior Justice Department officials, some of
whom could be the president's own personal lawyers. The Justice
Department says all its officials followed the guidance of career
ethics officials.
Speaker 3 (06:22):
Let's turn back to the markets and earnings now, Karen,
We're watching shares of Barclays. They're up about four percent.
In Europe, the British lender raised its earnings guidance for
this year and unveiled a five hundred million dollar stock buyback.
We spoke with CEO CS van Kata Christian.
Speaker 9 (06:37):
We had a top line beat of eleven percent growth
yere over year to seven point two billion. On the
top line, we've had nine percent consecutive quarters of tangible
net value growth.
Speaker 3 (06:47):
CEOCS van Kada Christian says Barclays is conducting a review
of its entire Lorn portfolio after the collapse of Tricolor holdings.
Speaker 2 (06:55):
On the economic front, Nathan UK inflation unexpectedly held steady
in September after food bills fell for the first time
in sixteen months. Consumer prices rose three point eight percent
from a year earlier. Data is fueling market bets on
a Bank of England interest rate cut before the end
of the year. Time now for a look at some
(07:16):
of the other stories making news in New York and
around the world. And for that we're joined by Blueberrys
and Michael Bahr or Michael good.
Speaker 10 (07:21):
Morning, Good morning Careen. It is now date twenty two
of the government shut down. Democrats say Republicans refuse to
negotiate on Democratic demands for health care funds. President Trump
says he'll discuss healthcare, but.
Speaker 8 (07:34):
I'd love to meet with them. I just want them
to open up the country grace.
Speaker 10 (07:38):
Senate Democratic Leader Chuck Schumer says he and the House
Minority leader have reached out to President Trump for a meeting.
Speaker 11 (07:46):
People are just struck of the difficulty they will be
in not having health care, not being able to pay
the rent if they pay for health care. They're just
shocked at how bad this is. And Trump has an
obligation to negotiate with this solve this problem.
Speaker 10 (08:02):
New York City's Canals Street vendors are nowhere to be seen,
at least for now. There was an immigration crackdown in
New York City as federal agents descended on Canal Street,
famous for its bargain shopping and knockoff designer goods, and
parts of Chinatown. The scene turned chaotic as agents made arrests.
New York City Mayor Eric Adams's office said this was
(08:24):
a federal action and the city officials were not involved
in the operation. President Trump said that Allied nations in
the Middle East were prepared to send troops into Gaza
to confront Hamas if the group did not cease its
alleged violations of his peace plan. There was violence just
days ago, prompting Vice President JD. Evans to make a
(08:44):
last minute trip to the Middle East.
Speaker 3 (08:46):
There are going to be hills and valleys. There are
going to be moments where it looks like things aren't
going particularly well. But given that, and given the history
of conflict, I think that everybody should be proud of
where we are today.
Speaker 10 (08:58):
Tonight is the second New York City mayoral debate Democrat
Zoron Mamdani, former Governor Andrew Cuomo, running as an independent
and Republican Curtis Sliva. We'll square off at LaGuardia Community College.
Global News twenty four hours a day and whenever you
want it with Bloomberg News Now. Michael barn This is
Bloomberg Karen.
Speaker 2 (09:18):
Thanks Michael. Time now for our Bloomberg Sports update, and
for that we bring in John stash.
Speaker 12 (09:23):
Hour thanks Aaron. Opening night of the NBA at Oklahoma City,
the thunder hoisted their championship banner, got their rings, and
for the sixth time ever a season opener went to
double overtime. First time it's happened in two thousand and five.
OKC beat Houston five to one twenty four. Last year's MVP,
Shay Gildess Alexander scored thirty five points, the only five
(09:43):
at halftime. Golden State the Lakers one nineteen to one
oh nine. Kurt Suzuki, former Major League catcher never been
a coach or manager, named the new manager of the
La Angels. That's your Bloomberg Sports Update.
Speaker 2 (09:55):
Stay with us more from Bloomberg day Break coming up
after this.
Speaker 1 (10:03):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business Appum. This is Bloomberg Daybreak.
Speaker 3 (10:13):
Good morning, I'm Nathan Hager. Investors were expecting a solid
quarter from Netflix, and they mostly got it after the
release of Kpop Demon Hunters and some other big hits
during the quarter gone by. But a tax dispute with
Brazil is putting a hit on the results for the
streaming giant.
Speaker 5 (10:30):
Let's get more now.
Speaker 3 (10:31):
We're joined by Bloomberg Intelligence Senior Media and Tech analyst
Matthew Bloxham. Matt, good morning. We are seeing a big
drop in Netflix shares. Could this tax dispute be an
ongoing overhang for Netflix? Is that what we're seeing in
the price reaction this morning?
Speaker 13 (10:46):
Yeah, you know what, I think it's a bit of
a red hirang. I mean that they would quiet say
yesterday and saying that they didn't expect this dispute to
have any impact on for profits. I think what we're
seeing is more of a reaction to, you know, an
inline performance, particularly on the top line, and I think
(11:06):
people were expecting something a bit better than what they
delivered on the back of that slate of popular and
well received content and which also included a widely viewed
live boxing event. So I think, you know, people just
thought they'd done enough to boost the momentum just a
bit more than they're guided to and we just saw
(11:27):
it in line. And so I think it's just a
little bit of a reaction to you know, that kind
of whisper number being a bit better. But yeah, it
came in a bit short.
Speaker 3 (11:36):
And coming into these earnings, there's been all this you know,
speculation around what's going to happen with Warner Brothers Discovery.
The reports confirmed that the Netflix is part of that discussion.
Does it need to be more a part of that
discussion to get investors more enthused about this stock?
Speaker 1 (11:52):
Now?
Speaker 13 (11:55):
I think, you know, the investors are probably a little
bit more evenly balanced, what I mean. And again, Netflix
were clear yesterday that the majority of their growth will
be organic and they'll look at these deals where they
make sense. So you know, I don't think they're in
a position where they just need to buy a studios
business for the sake of it to kind of keep
(12:16):
them in the game to scale up. They have scale,
They're clearly a great producer of content, So I think
investor will be looking at them to be you know,
careful and cautious and consider about any transaction that they
were to make. Clearly, you know, it can bring some
strategic benefit to them, but price is going to be
(12:36):
an important factor for them here.
Speaker 3 (12:38):
And in terms of the content coming up, We've got
the next season of Stranger Things, some other big blockbuster
hits that I think Netflix is hoping you're going to
pay off for them. What's the outlook going forward?
Speaker 13 (12:52):
Yeah, I mean, you know, Netflix is still by far
and away that the leading streaming platform. We've seen a
number of other streaming platforms struggle to some degree. Is
what's going on Warner Brothers. So, you know, I think
that they've got a great rhythm of producing content and
building the customer base and also pushing through pricing creases.
(13:15):
And obviously they've got the ads business, which is still
relatively young but expanding, and that that's going to continue
to be an extra leg of growth of them. So
as streaming platforms go, they're in a very strong position.
Speaker 3 (13:31):
Just about a minute left here, but we got some
pretty significant news, it seems, in the tech space, with
this report from Bloomberg News that Google's making a deal
on cloud compute power with Anthropic. What's your read on that.
Speaker 13 (13:44):
Yeah, so Anthropic obviously a big rival to open Ai.
Anthropics large language models called Claude. We're going to have
to wait to see the details of this transaction media.
The bloombook story talks about the deal worth tens of
billions of die I think, you know, we've seen a
lot of so called circular deals in in the AI
(14:08):
space recently, so this can be interesting whether this is
like just more of a straightforward commercial deal or whether
there's essentially an exchange of equity for the services Google
is going to provide. Now, Google is already an investor
of the tune of three billion dollars into Anthropic, but
it's also sits alongside a co investor that's Amazon, and
so far Amazon's been a big provider of the kind
(14:31):
of cloud services to Anthropic, and this is going to
take some of that business away from from Amazon going forward.
So I think it. You know, we'll have to wait
to see the details in the structure of the transaction,
but in big picture terms, it looks like a good
deal for Google in terms of boosting their cloud business.
Speaker 2 (14:50):
This is Bloombergy Daybreak, your morning podcast and the stories
making news from law Street to Washington and beyond.
Speaker 3 (14:57):
Look for us on your podcast feed by six a m.
Eastern each morning, on Apple, Spotify, or anywhere else you listen.
Speaker 2 (15:03):
You can also listen live each morning starting at five
am Wall Street time on Bloomberg eleven three to zero
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Speaker 3 (15:17):
Plus listen coast to coast on the Bloomberg Business App
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Speaker 2 (15:23):
And don't forget to subscribe to Bloomberg News Now. It's
the latest news whenever you want it in five minutes
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platform to stay informed all day long. I'm Karen Moscow.
Speaker 3 (15:36):
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
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):
Karen, we begin with some big tech earnings disappointments, starting
with Netflix. Those shares are down nearly seven percent in
early trading. The world's most valuable entertainment company posted quarterly
operating income of almost three hund a quarter billion dollars
that was about four hundred million below analyst estimates. Netflix
says a tax dispute with Brazil cut into its third
(00:37):
quarter results. On the company conference call, Netflix co CEO
Ted Sarandos address speculation the company's weighing bids for parts
of Warner Brothers Discovery.
Speaker 4 (00:46):
We've been very clear in the past that we have
no interest in owning legacy media networks, so there is
no change there. But in general, we believe that we
can be and we will be choosy. We have a
great business. We're predominantly focused on growing organically, investing aggressively
and responsibly into the growth, and returning access cash flow
to shareholders through our shot to share repurchase.
Speaker 3 (01:09):
Netflix co CEO Ted Sarando says the company had to
pay about six hundred and nineteen million dollars to settle
a multi year tax dispute with Brazil going back to
twenty twenty two. He says the company would have beaten
forecasts if not for that expense.
Speaker 2 (01:21):
Nathan. Another earnings disappointment has shares of Texas Instruments down
almost nine percent. The biggest maker of analog chips gave
a lackluster forecast for the current period, adding to concern
that a ship industry recovery is sputtering well.
Speaker 3 (01:35):
Staying in tech, Karen Bloomberg News has learned Google is
in talks for a mega deal with artificial intelligence company
and Thropic. Let's get the very latest on that with
Bloomberg's John Tucker.
Speaker 5 (01:45):
John, good morning, Good morning, Nathan. You have the race
for AI dominance may have gotten more intense. If this
deal goes through, Google would provide Anthropic with computing power
worth tens of billions of dollars. It would allow Anthropic
to use Google's chip's custom designed to accelerate machine learning workloads,
and it would further cement the relationship between Google and
(02:07):
the AI startup founded in twenty twenty one by former
Open Ai employees San Francisco based Anthropic, best known for
its Claud family of large language models, which compete directly
with Open Ai. Google has previously invested about three billion
dollars in Anthropic and Google parent Alphabet up one point
(02:27):
two percent pre market, New York. I'm John Tucker, Bloomberg Radio.
Speaker 2 (02:31):
All right, John, thank you. We turned now to commodities,
where gold and silver are rebounding from yesterday's selloff. Gold
fell nearly six percent yesterday for its biggest inter day
drop in more than a dozen years. At one point,
silver was down almost nine percent. Mike mcgloone covers commodities
for Bloomberg Intelligence.
Speaker 6 (02:50):
Right now, it's just a little bit of profit taking,
But it's what's happening in gold that's very disconcerting. As
of yesterday, it was up sixty six percent in the year.
That put it among the top four of the last
one hundred years, with only nineteen seventy nine, seventy three,
and seventy four ahead of it, So it's very expensive.
At the same time, crude oil was down about twenty percent.
(03:11):
That disparity around eighty six percent has never happened.
Speaker 2 (03:14):
It's never been that extreme in Bloombergy Intelligence Mike McGlone
checking prices of gold right now Comec's gold is down
about two tenths of up percent at four thousand, one
hundred dollars announced. Silver is down about a third of
up percent.
Speaker 3 (03:28):
Let's get to the latest, Karen. On the trade front,
President Trump is sending a mixed message ahead of a
possible meeting with Chinese President Shi Jin Pink During a
White House rose guard in lunch with Senate Republicans, the
President said the terifrate on Chinese exports would be about
one hundred and fifty five percent by November first, if
they don't make a deal.
Speaker 7 (03:46):
Now, we're going to have a fair deal. I think
we're going to have a very successful meeting. Certainly, there
are a lot of people that are waiting for it.
Maybe it won't happen. Maybe it won't happen. Things can
happen where for instance, maybe somebody will say I don't
want to meet. It's too nasty, But it's really not nasty.
It's just business.
Speaker 3 (04:04):
President Trump says he wants to make a good deal
with China, but he says it has to be fair.
Treasury Secretary Scott Bessett plans to meet with his Chinese
counterpart over the weekend before the talks between Presidents Trump
and she. Those are expected at the APEX summit in
South Korea, though the date and time have not yet
been announced.
Speaker 2 (04:21):
Nathan India and the US are reportedly near a trade
deal that could lower tariffs on Indian exports to fifteen
to sixteen percent from about fifty percent. The newspaper is
reporting India may agree to gradually reduce its imports of
Russian oil as part of the deal and allow the
US to export more non genetically modified corn and soymeal.
Speaker 3 (04:41):
Overnight, Karen Russia launched multiple drone and missile strikes on Ukraine,
as a planned second summit between President Trump and Russian
President Vladimir Putin is thrown into jeopardy. The President address
that possible meeting yesterday.
Speaker 8 (04:56):
I don't want to have a wasted meeting. I don't
want to have a wasted time. So I'll see what happened.
But when I said, go to the line, go to
the line of the battle on the battlefield lines, and
you pull back and you go home, and everybody takes
some time off because you have two countries that are
killing each other, two countries are losing five to seven
thousand soldiers a week, So we'll see what happens. It's
(05:19):
we haven't made a determination.
Speaker 3 (05:20):
Ar President Trump had said he planned to meet with
President Putin in Budapest in the coming weeks.
Speaker 2 (05:26):
Now, Nathan to a report that's raising conflict of interest
questions at the White House. According to The New York Times,
President Trump is demanding the Justice Department pay him about
two hundred and thirty million dollars for past investigations against him.
That includes the probes into Russian interference in the twenty
sixteen campaign and the FBI search of his Mara Lago home.
(05:47):
President Trump appeared to acknowledge the report when he was
asked about it in the Oval Office.
Speaker 8 (05:52):
We have numerous cases having to do with the fraud
of the election, the twenty twenty election, and because of
every thing that we found out, I guess they owe
me a lot of money.
Speaker 2 (06:03):
By President Trump says if he gets the money, he
would give it to charity or use it to restore
the White House. Any decisions about paying the president's claims
would be made by senior Justice Department officials, some of
whom could be the president's own personal lawyers. The Justice
Department says all its officials followed the guidance of career
ethics officials.
Speaker 3 (06:22):
Let's turn back to the markets and earnings now, Karen,
We're watching shares of Barclays. They're up about four percent.
In Europe, the British lender raised its earnings guidance for
this year and unveiled a five hundred million dollar stock buyback.
We spoke with CEO CS van Kata Christian.
Speaker 9 (06:37):
We had a top line beat of eleven percent growth
yere over year to seven point two billion. On the
top line, we've had nine percent consecutive quarters of tangible
net value growth.
Speaker 3 (06:47):
CEOCS van Kada Christian says Barclays is conducting a review
of its entire Lorn portfolio after the collapse of Tricolor holdings.
Speaker 2 (06:55):
On the economic front, Nathan UK inflation unexpectedly held steady
in September after food bills fell for the first time
in sixteen months. Consumer prices rose three point eight percent
from a year earlier. Data is fueling market bets on
a Bank of England interest rate cut before the end
of the year. Time now for a look at some
(07:16):
of the other stories making news in New York and
around the world. And for that we're joined by Blueberrys
and Michael Bahr or Michael good.
Speaker 10 (07:21):
Morning, Good morning Careen. It is now date twenty two
of the government shut down. Democrats say Republicans refuse to
negotiate on Democratic demands for health care funds. President Trump
says he'll discuss healthcare, but.
Speaker 8 (07:34):
I'd love to meet with them. I just want them
to open up the country grace.
Speaker 10 (07:38):
Senate Democratic Leader Chuck Schumer says he and the House
Minority leader have reached out to President Trump for a meeting.
Speaker 11 (07:46):
People are just struck of the difficulty they will be
in not having health care, not being able to pay
the rent if they pay for health care. They're just
shocked at how bad this is. And Trump has an
obligation to negotiate with this solve this problem.
Speaker 10 (08:02):
New York City's Canals Street vendors are nowhere to be seen,
at least for now. There was an immigration crackdown in
New York City as federal agents descended on Canal Street,
famous for its bargain shopping and knockoff designer goods, and
parts of Chinatown. The scene turned chaotic as agents made arrests.
New York City Mayor Eric Adams's office said this was
(08:24):
a federal action and the city officials were not involved
in the operation. President Trump said that Allied nations in
the Middle East were prepared to send troops into Gaza
to confront Hamas if the group did not cease its
alleged violations of his peace plan. There was violence just
days ago, prompting Vice President JD. Evans to make a
(08:44):
last minute trip to the Middle East.
Speaker 3 (08:46):
There are going to be hills and valleys. There are
going to be moments where it looks like things aren't
going particularly well. But given that, and given the history
of conflict, I think that everybody should be proud of
where we are today.
Speaker 10 (08:58):
Tonight is the second New York City mayoral debate Democrat
Zoron Mamdani, former Governor Andrew Cuomo, running as an independent
and Republican Curtis Sliva. We'll square off at LaGuardia Community College.
Global News twenty four hours a day and whenever you
want it with Bloomberg News Now. Michael barn This is
Bloomberg Karen.
Speaker 2 (09:18):
Thanks Michael. Time now for our Bloomberg Sports update, and
for that we bring in John stash.
Speaker 12 (09:23):
Hour thanks Aaron. Opening night of the NBA at Oklahoma City,
the thunder hoisted their championship banner, got their rings, and
for the sixth time ever a season opener went to
double overtime. First time it's happened in two thousand and five.
OKC beat Houston five to one twenty four. Last year's MVP,
Shay Gildess Alexander scored thirty five points, the only five
(09:43):
at halftime. Golden State the Lakers one nineteen to one
oh nine. Kurt Suzuki, former Major League catcher never been
a coach or manager, named the new manager of the
La Angels. That's your Bloomberg Sports Update.
Speaker 2 (09:55):
Stay with us more from Bloomberg day Break coming up
after this.
Speaker 1 (10:03):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business Appum. This is Bloomberg Daybreak.
Speaker 3 (10:13):
Good morning, I'm Nathan Hager. Investors were expecting a solid
quarter from Netflix, and they mostly got it after the
release of Kpop Demon Hunters and some other big hits
during the quarter gone by. But a tax dispute with
Brazil is putting a hit on the results for the
streaming giant.
Speaker 5 (10:30):
Let's get more now.
Speaker 3 (10:31):
We're joined by Bloomberg Intelligence Senior Media and Tech analyst
Matthew Bloxham. Matt, good morning. We are seeing a big
drop in Netflix shares. Could this tax dispute be an
ongoing overhang for Netflix? Is that what we're seeing in
the price reaction this morning?
Speaker 13 (10:46):
Yeah, you know what, I think it's a bit of
a red hirang. I mean that they would quiet say
yesterday and saying that they didn't expect this dispute to
have any impact on for profits. I think what we're
seeing is more of a reaction to, you know, an
inline performance, particularly on the top line, and I think
(11:06):
people were expecting something a bit better than what they
delivered on the back of that slate of popular and
well received content and which also included a widely viewed
live boxing event. So I think, you know, people just
thought they'd done enough to boost the momentum just a
bit more than they're guided to and we just saw
(11:27):
it in line. And so I think it's just a
little bit of a reaction to you know, that kind
of whisper number being a bit better. But yeah, it
came in a bit short.
Speaker 3 (11:36):
And coming into these earnings, there's been all this you know,
speculation around what's going to happen with Warner Brothers Discovery.
The reports confirmed that the Netflix is part of that discussion.
Does it need to be more a part of that
discussion to get investors more enthused about this stock?
Speaker 1 (11:52):
Now?
Speaker 13 (11:55):
I think, you know, the investors are probably a little
bit more evenly balanced, what I mean. And again, Netflix
were clear yesterday that the majority of their growth will
be organic and they'll look at these deals where they
make sense. So you know, I don't think they're in
a position where they just need to buy a studios
business for the sake of it to kind of keep
(12:16):
them in the game to scale up. They have scale,
They're clearly a great producer of content, So I think
investor will be looking at them to be you know,
careful and cautious and consider about any transaction that they
were to make. Clearly, you know, it can bring some
strategic benefit to them, but price is going to be
(12:36):
an important factor for them here.
Speaker 3 (12:38):
And in terms of the content coming up, We've got
the next season of Stranger Things, some other big blockbuster
hits that I think Netflix is hoping you're going to
pay off for them. What's the outlook going forward?
Speaker 13 (12:52):
Yeah, I mean, you know, Netflix is still by far
and away that the leading streaming platform. We've seen a
number of other streaming platforms struggle to some degree. Is
what's going on Warner Brothers. So, you know, I think
that they've got a great rhythm of producing content and
building the customer base and also pushing through pricing creases.
(13:15):
And obviously they've got the ads business, which is still
relatively young but expanding, and that that's going to continue
to be an extra leg of growth of them. So
as streaming platforms go, they're in a very strong position.
Speaker 3 (13:31):
Just about a minute left here, but we got some
pretty significant news, it seems, in the tech space, with
this report from Bloomberg News that Google's making a deal
on cloud compute power with Anthropic. What's your read on that.
Speaker 13 (13:44):
Yeah, so Anthropic obviously a big rival to open Ai.
Anthropics large language models called Claude. We're going to have
to wait to see the details of this transaction media.
The bloombook story talks about the deal worth tens of
billions of die I think, you know, we've seen a
lot of so called circular deals in in the AI
(14:08):
space recently, so this can be interesting whether this is
like just more of a straightforward commercial deal or whether
there's essentially an exchange of equity for the services Google
is going to provide. Now, Google is already an investor
of the tune of three billion dollars into Anthropic, but
it's also sits alongside a co investor that's Amazon, and
so far Amazon's been a big provider of the kind
(14:31):
of cloud services to Anthropic, and this is going to
take some of that business away from from Amazon going forward.
So I think it. You know, we'll have to wait
to see the details in the structure of the transaction,
but in big picture terms, it looks like a good
deal for Google in terms of boosting their cloud business.
Speaker 2 (14:50):
This is Bloombergy Daybreak, your morning podcast and the stories
making news from law Street to Washington and beyond.
Speaker 3 (14:57):
Look for us on your podcast feed by six a m.
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Speaker 2 (15:03):
You can also listen live each morning starting at five
am Wall Street time on Bloomberg eleven three to zero
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Speaker 3 (15:17):
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Speaker 2 (15:23):
And don't forget to subscribe to Bloomberg News Now. It's
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platform to stay informed all day long. I'm Karen Moscow.
Speaker 3 (15:36):
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
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