May 1, 2025 • 16 mins
On today's podcast:
1) Microsoft Corp. shares jumped after the company reported stronger-than-expected quarterly sales and profit growth, suggesting customer demand for cloud services has held steady despite a wave of tariffs and economic turbulence.
2) Meta Platforms Inc. quelled Wall Street concerns about the impact of the Trump administration’s trade war on advertising sales, reporting first-quarter revenue that beat expectations and forecasting additional spending.
3) The US and Ukraine reached a deal over access to the country’s natural resources, offering a measure of assurance to officials in Kyiv who had feared that President Donald Trump would pull back his support in peace talks with Russia.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2 (00:09):
Good morning.
Speaker 3 (00:10):
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today, Karen.
Speaker 2 (00:15):
The jump in futures, particularly on the Nasdaq, follows blowout
quarters from a pair of tech heavyweights. Let's begin with Microsoft.
Those shares are up more than eight percent in early trading.
The software giant reported stronger than expected quarterly sales and
profit growth. Customer demand for cloud services held steady despite
economic turbulence. Azure's cloud unit at Microsoft posted a thirty
(00:38):
three percent revenue gain. Sixteen percentage points of that growth
was attributed to AI. Microsoft CEO Sati Nadella spoke on
the company conference call.
Speaker 4 (00:48):
We just want to make sure we're building accounting for
the latest and greatest sort of information we have on
all of that, and that's what you see reflected. And
I feel any way good about the pain.
Speaker 2 (01:02):
Microsoft CEO Satya Nadella expects the cloud unit to grow
as much as thirty five percent in the current quarter.
Speaker 3 (01:08):
Well. Shares of Meta are also rallying this morning, Nathan.
They're up six percent. The Facebook and Instagram owner reported
fiscal quarter revenue that beat expectations. The company also said
current quarter revenue will be in line with analyst estimates.
Here's CEO Mark Zuckerberg on the company's earnings call.
Speaker 5 (01:25):
We've had a strong start to the year. Our community
keeps growing, with more than three point four billion people
now using at least one of our apps each day.
Our business is also performing very well, and I think
we're well positioned to navigate the macroeconomic uncertainty.
Speaker 3 (01:43):
And metic CEO Mark Zuckerberg said the company expects to
spend sixty four billion to seventy two billion dollars this year,
attributing some of the increase to tariffs imposed by the
Trump administration.
Speaker 2 (01:54):
And Karen the tech earnings keep rolling Today. We will
hear from two more of the so called Magnificent seven
this afternoon, Apple and Amazon. Let's get an Apple preview
now from Bloomberg's Tom Busby.
Speaker 6 (02:05):
Key for investors will be any insights into the future
impact of the Trump tariffs and the company's ongoing efforts
to catch up with rivals on artificial intelligence, something that
could risk its reputation and future sales.
Speaker 7 (02:17):
Now.
Speaker 6 (02:17):
Apple's heavy reliance on China for iPhone production has made
it particularly vulnerable to tariffs, and whether that exposure could
lead to price sikes or more production shifting to India
or elsewhere. Bloomberg consensus calls for revenue of ninety four
point sixty two billion dollars on earnings per share of
a dollar sixty two. Tom Busby Bloomberg Radio, All right.
Speaker 3 (02:38):
Tom, thank you all staying in the tech world the
share of Tesla's denying your report. The board had looked
to replace chief executive Elon Musk. The Wall Street Journal
reported that Tesla board members had contacted executive search firms
to seek a successor to Musk earlier this year. According
to the paper, the director's approaches took place about a
month ago, as investors were concerned about the amount of
(02:59):
time Musk was devoting to his cost cutting role with
the government. On a post on Tesla's ex account chair,
Robin Denholms said quote, this is absolutely false and directors
are highly confident in musk stability.
Speaker 2 (03:12):
Hearing there are new developments this morning to end the
war in Ukraine. The US has reached a deal over
Ukraine's natural resources. It'll get access to new investment projects
to develop things like aluminum, graphite, oil and natural gas Bloomberg.
Stan Flatley is in Washington on why this deal is
so important for Ukraine.
Speaker 8 (03:30):
Essentially, what this is is a guarantee as far as
the Trump administration is concerned that the US will continue
to remain involved in Ukraine. Will help Ukraine achieve some
sort of equitable piece deal with Russia, if that's even
possible at this point.
Speaker 2 (03:46):
But this deal is key Bloomberg. Stan Flatley says the
deal will create a fund to attract global investment into Ukraine.
The US would get first claim on profits transferred into
the fund, which would be jointly managed by both nations.
Speaker 3 (03:59):
Meanwhile, Nathan in the Senate is looking to put new
pressure on Russia as ceasefire talks drag on. Republican Lindsey
Graham says he has brought support for what he calls
bone crushing sanctions if Russian President Vladimir Putin does not
get serious with the discussions. Graham's bill includes five hundred
percent tariffs on countries that purchase Russian energy and a
(04:20):
ban on US citizens buying Russia's sovereign debt. The South
Carolina Republican says Putin will have to choose between sitting
down with President Trump or watching his economy be crushed.
Speaker 2 (04:31):
All right, Keren, Now let's get to the latest on
the trade war. President Trump says he is determined to
move ahead with his sweeping tariff plans, though he admits
it comes with a political risk.
Speaker 9 (04:40):
It is true, and I just think that I'll be
able to convince people how good this is. This is
what other countries have done to us. We've been the
laughing stock and the whipping post. We've been ripped off
by every country practically in the world.
Speaker 2 (04:55):
President Trump phoned into a News Nation town hall last
night after government figure showed the economy contracted in the
first quarter for the first time since twenty twenty two.
The president says much of the blame for that goes
to former President Joe Biden.
Speaker 4 (05:09):
In that News Nation.
Speaker 3 (05:10):
Town hall, Nathan the President said there's a very good
chance he'll strike a trade deal with China, but it
has to be on his terms. Host Bill O'Reilly asked
when he would announce deals with other trading partners like
South Korea, Japan, and India.
Speaker 4 (05:24):
Well, we have.
Speaker 9 (05:25):
Potential deals with them. Yeah, but I'm in okay, I'll
tell you this. I'm in less of a hurry than
you are. We are sitting on the cat bird seat.
They want us, we don't need them.
Speaker 3 (05:37):
Meanwhile, state run media and China are reporting the US
has reached out to Beijing to try to kickstart trade
talks through various channels. President Trump has repeatedly said Chinese
President Xijin Ping needs to make the first move.
Speaker 2 (05:49):
And Karen, the global trade war is impacting monetary policy overseas.
The Bank of Japan is pushing back the timing for
when it expects to reach its two percent inflation target.
JAYS also slashing its growth forecast. Says the global trade
war darkens the economic outlook, and checking the Japanese yen
right now, it is weaker against the dollar, down about
(06:11):
three quarters of one percent at one forty four point
one six.
Speaker 3 (06:18):
It's time now for look at some of the other
stories making news in New York and around the world,
and for that we're joined by Bloomberg's Michael Barr Michael,
Good Morning.
Speaker 7 (06:25):
Good Morning Care and former Vice President Kamala Harris used
a high profile speech in San Francisco to deliver a
sharp edged critique of President Donald Trump, accusing him of
wholesale abandonment of American ideals. Last night's speech was Harris'
most extensive public remarks since leaving office in January.
Speaker 10 (06:45):
We are living in a moment when the checks and
balances upon which we have historically relied have begun to buckle.
Speaker 7 (06:55):
The speech comes as Harris is not ruled out or
run for California governor or another White House try. The
US urged India and Pakistan to work together to de
escalate tensions and avoid a clash after militants killed dozens
of people in Indian controlled Kashmir last week. Relations between
India and Pakistan have rapidly deteriorated, with India accusing Pakistan
(07:20):
of involvement in the attack, Pakistan denying any links. A
Columbia University student arrested during his citizenship interview was released
yesterday by a federal judge in Vermont. Outside the courthouse, motion,
mcdowi said that he is not afraid of President Trump.
Speaker 1 (07:37):
He has made a very brave decision to let me out.
Speaker 11 (07:42):
And this is what justice is.
Speaker 8 (07:43):
And for anybody who's doubting justice, this is a life
of hope.
Speaker 7 (07:48):
The judge said. Mcdawi has not been charged with a crime.
Linda Drewby, one of mcdowi's attorneys, said her client is
feeling shocked and proud to see justice.
Speaker 11 (07:57):
The court told the government that they can and not
detained individuals solely because they're engaged in lawful speech, and
that's exactly what mister macdowie was engaged in.
Speaker 7 (08:08):
Mcdowie is allowed to occasionally go to New York City
to finish up his studies at Columbia In upstate New York,
the Onondaga County District Attorney says eleven teenagers a part
of the West Hill High School men's lacrosse team have
turned themselves in for a hazing incident that means they'll
be spared from facing more serious charges. The DA says
they hazed younger team members, ambushing them with an apparent
(08:32):
gun and knife pointed at one of them before he
was thrown into the back of a car. Global News
twenty four hours a day and whenever you want it
with the Bloomberg News. Now Michael barrn this is Bloomberg Karen.
Speaker 3 (08:43):
All right, Michael barr thank you time now for the
Bloomberg Sports Update. Here's John Stanshauer. John, Good morning, morning, Dann.
Speaker 12 (08:53):
The Yankees finished the series in Baltimore the night after
hitting six home runs, four in the first then in
another first Jitning homer.
Speaker 2 (09:00):
It was hit for the Yankee captain Hi Josh centerfield.
Speaker 4 (09:05):
Holland's back track.
Speaker 6 (09:08):
See what a shot?
Speaker 4 (09:11):
What your run?
Speaker 3 (09:12):
Home?
Speaker 2 (09:12):
One for Judge in his personal play Pat two nothing.
Speaker 12 (09:16):
Yes, yes, never to call Aaron Judge's twenty sixth career
homer at Camden Yards, and he had two more hits.
Finished April with a batting average of four to twenty seven,
but the game ended with Judge on deck, couldn't get
to the plate with the Yanks trailing by iran. Baltimore
won five to four, took two of three in the series,
only the second time the Mets have lost in City Field.
The ninth Enning Valley fell short. Arizona won four to three.
(09:37):
Red Sox lost seven to six ten innings at Toronto.
National's lost seven two in Philadelphia. Win for Colorado two
one over Atlanta. Rockies finished April five and twenty five,
most losses on May first in MLV history. At the
seventh inning of the Cubs game in Pittsburgh, a fan
fell from the stands landed on the warning track in
right field.
Speaker 7 (09:57):
He's in the.
Speaker 12 (09:57):
Hospital in critical condition. Season for the Lakers, they go
out scoring only sixteen points in the fourth quarter in
a one oh three ninety six home loss to Minnesota,
who won the series four games to one. For the Timberwolves,
Rudy Gobert twenty seven points twenty four rebounds, both their
career playoff highs Houston Mcgolden State one thirty one, one sixteen,
the Warriors are still up three to two. The Knicks
(10:18):
are up three too going to Game six tonight in Detroit.
The Nicks hoping to follow the path of last year's
first round, when they also failed to win the series
at home in Game five, but won a Game six
that was in Philadelphia, Washington and Florida. Moving on, Stanley
Cup playoffs, Capitals beat Montreal four to one. Panthers won
six to three at Tampa Bay. Both won their series
in five. Winnipeg beat Saint Louis five to three. John
(10:41):
Stanstedward Bloomberg Sports Kearny Nathan.
Speaker 1 (10:45):
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 Day Break.
Speaker 2 (10:55):
Good morning, I'm Nathan Hager. On a very busy week
for big tech earnings. It is getting off to a
solid start, strong earnings from Microsoft and meta platforms, even
with uncertainty around trade. Here to break it down for
us this morning, Bloomberg Markets reporter Valerie Titel. Val great
to have you with us. Let's start with Microsoft, since
(11:16):
it's seeing the slightly bigger move in the pre market.
Investors there wanted to see whether the demand is still
holding up for AI and the cloud, and it looks
like Microsoft delivered. And then some good morning, Good.
Speaker 10 (11:28):
Morning, Nathan, Yes, Microsoft delivered, and then some shares are
jumping eight percent in the pre market. Beats across the
board revenue, cloud sales, and also a bullish projection over
its cloud business. Investors were also very welcome to see
that it tapped the brakes on capex for the first
time in ten quarters. Investors really like that prudence with
(11:48):
that stock soaring up this morning, Let's focus in on
the cloud business because sales there unexpectedly strong, up thirteen percent.
The cloud business called Azure grew thirty three percent in
the quarter, and they said that in the next quarter,
they are predicting thirty five percent growth that was well
above estimates. Profits were also up eighteen percent from the
(12:10):
same period last year, and almost half of their growth
in that cloud business came from AI services. So it
seems like all that expenditure on artificial intelligence is paying
off and then some. For Microsoft, those shares are up
eight point two percent pre market.
Speaker 2 (12:25):
And interesting to see that they have this sort of
bullish forecast around demand for further AI growth. Could that
hold up if these trade uncertainties continue? How is Microsoft
saying it's going to navigate that?
Speaker 6 (12:40):
Look?
Speaker 10 (12:41):
Microsoft definitely, in the context of the fact that they
are continuing to spend, continuing to invest, is showing that
they are expected to get returns for this additional expenditure.
You know, Meta also said the same thing. They forecasted
additional spending on the back of this. So even though
all of this uncertainty is overhanging, we're still seeing companies
(13:03):
in big tech investing further and I think that is
a bullish thing for US megacap tech.
Speaker 2 (13:08):
Now turning two. Meta, as you say, the spending there
is continuing as well, and it looks like the AD
business is holding up to sort of support that spending
as well.
Speaker 10 (13:18):
Yeah, Meta jumping six point one percent so far pre
market trade. They really did calm investor nerves about the
impact of Trump's trade war on advertising sales. Advertising is
a very cyclical business. Somewhere worried that they might have
seen advertisers pull back on ad spend given all the uncertainty,
but they reported a first quarter revenue that beat expectations.
(13:40):
Ninety eight percent of their revenue comes from advertising, so
they did not show an advertising pullback. They also forecasted
additional spending as I said, and they anticipated continued growth
despite the tariffs. They also showed that the investment in
AI is paying off for them too. They showed that
AI is helping to improve ad targeting and personalization on
(14:00):
the content people see on its social media network. So
another bullish narrative coming out of Meta. Those shares are
up six and a quarter percent.
Speaker 2 (14:08):
Yeah, I guess it has to be said, Valerie that
just the fact that both these companies are even giving
guidance as a Polish sign is so much of what
we've heard from so many other companies. So in our
last minute or so, what does that tell us about
what we could expect later today when we hear from
Amazon and Apple after the closing bell.
Speaker 10 (14:25):
I do think the risk is here, Nathan. We might
get a different narrative because the narrative coming out of
both Apple and Amazon is their heavy reliance on China.
We know that Apple's you know, iPhone supply chain is
very intertwined in China. Amazon has a lot of retail
logistics and advertisers that come from China as well, So
we might get a bit different picture painted by these
two other mag seven's that report later tonight, So watch
(14:48):
out for those any comments about them shifting their supply
chains updating on pricing as well. We'll be watching out
for those kind of warnings with Apple and Amazon later.
Speaker 2 (14:57):
It's interesting to think about in our last minute of
there could be sort of a fracturing of the Magnificent
seven based just on where the supply chains are coming from.
Speaker 10 (15:06):
Yeah, exactly, And you have to have to account for
the fact that Apple and Amazon, you know, they're retailers
of hard goods which are struggling with these tariffs. So
you're right, we might see a bifurcation happen between tech
those who are more focused on the shipments of goods
versus the sell of software that could see some bifurcation
between those two corporates, that saying very good point.
Speaker 3 (15:26):
This is Bloomberg Daybreak, your morning podcast on the stories
making news from Wall Street to Washington and beyond.
Speaker 2 (15:33):
Look for us on your podcast feed by six am
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Speaker 3 (15:39):
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Speaker 2 (15:53):
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Speaker 3 (16:00):
Forget to subscribe to Bloomberg News Now, It's the latest
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Search Bloomberg News Now on your favorite podcast platform to
stay informed all day long. I'm Karen Moscow.
Speaker 2 (16:12):
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 Ray
Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2 (00:09):
Good morning.
Speaker 3 (00:10):
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today, Karen.
Speaker 2 (00:15):
The jump in futures, particularly on the Nasdaq, follows blowout
quarters from a pair of tech heavyweights. Let's begin with Microsoft.
Those shares are up more than eight percent in early trading.
The software giant reported stronger than expected quarterly sales and
profit growth. Customer demand for cloud services held steady despite
economic turbulence. Azure's cloud unit at Microsoft posted a thirty
(00:38):
three percent revenue gain. Sixteen percentage points of that growth
was attributed to AI. Microsoft CEO Sati Nadella spoke on
the company conference call.
Speaker 4 (00:48):
We just want to make sure we're building accounting for
the latest and greatest sort of information we have on
all of that, and that's what you see reflected. And
I feel any way good about the pain.
Speaker 2 (01:02):
Microsoft CEO Satya Nadella expects the cloud unit to grow
as much as thirty five percent in the current quarter.
Speaker 3 (01:08):
Well. Shares of Meta are also rallying this morning, Nathan.
They're up six percent. The Facebook and Instagram owner reported
fiscal quarter revenue that beat expectations. The company also said
current quarter revenue will be in line with analyst estimates.
Here's CEO Mark Zuckerberg on the company's earnings call.
Speaker 5 (01:25):
We've had a strong start to the year. Our community
keeps growing, with more than three point four billion people
now using at least one of our apps each day.
Our business is also performing very well, and I think
we're well positioned to navigate the macroeconomic uncertainty.
Speaker 3 (01:43):
And metic CEO Mark Zuckerberg said the company expects to
spend sixty four billion to seventy two billion dollars this year,
attributing some of the increase to tariffs imposed by the
Trump administration.
Speaker 2 (01:54):
And Karen the tech earnings keep rolling Today. We will
hear from two more of the so called Magnificent seven
this afternoon, Apple and Amazon. Let's get an Apple preview
now from Bloomberg's Tom Busby.
Speaker 6 (02:05):
Key for investors will be any insights into the future
impact of the Trump tariffs and the company's ongoing efforts
to catch up with rivals on artificial intelligence, something that
could risk its reputation and future sales.
Speaker 7 (02:17):
Now.
Speaker 6 (02:17):
Apple's heavy reliance on China for iPhone production has made
it particularly vulnerable to tariffs, and whether that exposure could
lead to price sikes or more production shifting to India
or elsewhere. Bloomberg consensus calls for revenue of ninety four
point sixty two billion dollars on earnings per share of
a dollar sixty two. Tom Busby Bloomberg Radio, All right.
Speaker 3 (02:38):
Tom, thank you all staying in the tech world the
share of Tesla's denying your report. The board had looked
to replace chief executive Elon Musk. The Wall Street Journal
reported that Tesla board members had contacted executive search firms
to seek a successor to Musk earlier this year. According
to the paper, the director's approaches took place about a
month ago, as investors were concerned about the amount of
(02:59):
time Musk was devoting to his cost cutting role with
the government. On a post on Tesla's ex account chair,
Robin Denholms said quote, this is absolutely false and directors
are highly confident in musk stability.
Speaker 2 (03:12):
Hearing there are new developments this morning to end the
war in Ukraine. The US has reached a deal over
Ukraine's natural resources. It'll get access to new investment projects
to develop things like aluminum, graphite, oil and natural gas Bloomberg.
Stan Flatley is in Washington on why this deal is
so important for Ukraine.
Speaker 8 (03:30):
Essentially, what this is is a guarantee as far as
the Trump administration is concerned that the US will continue
to remain involved in Ukraine. Will help Ukraine achieve some
sort of equitable piece deal with Russia, if that's even
possible at this point.
Speaker 2 (03:46):
But this deal is key Bloomberg. Stan Flatley says the
deal will create a fund to attract global investment into Ukraine.
The US would get first claim on profits transferred into
the fund, which would be jointly managed by both nations.
Speaker 3 (03:59):
Meanwhile, Nathan in the Senate is looking to put new
pressure on Russia as ceasefire talks drag on. Republican Lindsey
Graham says he has brought support for what he calls
bone crushing sanctions if Russian President Vladimir Putin does not
get serious with the discussions. Graham's bill includes five hundred
percent tariffs on countries that purchase Russian energy and a
(04:20):
ban on US citizens buying Russia's sovereign debt. The South
Carolina Republican says Putin will have to choose between sitting
down with President Trump or watching his economy be crushed.
Speaker 2 (04:31):
All right, Keren, Now let's get to the latest on
the trade war. President Trump says he is determined to
move ahead with his sweeping tariff plans, though he admits
it comes with a political risk.
Speaker 9 (04:40):
It is true, and I just think that I'll be
able to convince people how good this is. This is
what other countries have done to us. We've been the
laughing stock and the whipping post. We've been ripped off
by every country practically in the world.
Speaker 2 (04:55):
President Trump phoned into a News Nation town hall last
night after government figure showed the economy contracted in the
first quarter for the first time since twenty twenty two.
The president says much of the blame for that goes
to former President Joe Biden.
Speaker 4 (05:09):
In that News Nation.
Speaker 3 (05:10):
Town hall, Nathan the President said there's a very good
chance he'll strike a trade deal with China, but it
has to be on his terms. Host Bill O'Reilly asked
when he would announce deals with other trading partners like
South Korea, Japan, and India.
Speaker 4 (05:24):
Well, we have.
Speaker 9 (05:25):
Potential deals with them. Yeah, but I'm in okay, I'll
tell you this. I'm in less of a hurry than
you are. We are sitting on the cat bird seat.
They want us, we don't need them.
Speaker 3 (05:37):
Meanwhile, state run media and China are reporting the US
has reached out to Beijing to try to kickstart trade
talks through various channels. President Trump has repeatedly said Chinese
President Xijin Ping needs to make the first move.
Speaker 2 (05:49):
And Karen, the global trade war is impacting monetary policy overseas.
The Bank of Japan is pushing back the timing for
when it expects to reach its two percent inflation target.
JAYS also slashing its growth forecast. Says the global trade
war darkens the economic outlook, and checking the Japanese yen
right now, it is weaker against the dollar, down about
(06:11):
three quarters of one percent at one forty four point
one six.
Speaker 3 (06:18):
It's time now for look at some of the other
stories making news in New York and around the world,
and for that we're joined by Bloomberg's Michael Barr Michael,
Good Morning.
Speaker 7 (06:25):
Good Morning Care and former Vice President Kamala Harris used
a high profile speech in San Francisco to deliver a
sharp edged critique of President Donald Trump, accusing him of
wholesale abandonment of American ideals. Last night's speech was Harris'
most extensive public remarks since leaving office in January.
Speaker 10 (06:45):
We are living in a moment when the checks and
balances upon which we have historically relied have begun to buckle.
Speaker 7 (06:55):
The speech comes as Harris is not ruled out or
run for California governor or another White House try. The
US urged India and Pakistan to work together to de
escalate tensions and avoid a clash after militants killed dozens
of people in Indian controlled Kashmir last week. Relations between
India and Pakistan have rapidly deteriorated, with India accusing Pakistan
(07:20):
of involvement in the attack, Pakistan denying any links. A
Columbia University student arrested during his citizenship interview was released
yesterday by a federal judge in Vermont. Outside the courthouse, motion,
mcdowi said that he is not afraid of President Trump.
Speaker 1 (07:37):
He has made a very brave decision to let me out.
Speaker 11 (07:42):
And this is what justice is.
Speaker 8 (07:43):
And for anybody who's doubting justice, this is a life
of hope.
Speaker 7 (07:48):
The judge said. Mcdawi has not been charged with a crime.
Linda Drewby, one of mcdowi's attorneys, said her client is
feeling shocked and proud to see justice.
Speaker 11 (07:57):
The court told the government that they can and not
detained individuals solely because they're engaged in lawful speech, and
that's exactly what mister macdowie was engaged in.
Speaker 7 (08:08):
Mcdowie is allowed to occasionally go to New York City
to finish up his studies at Columbia In upstate New York,
the Onondaga County District Attorney says eleven teenagers a part
of the West Hill High School men's lacrosse team have
turned themselves in for a hazing incident that means they'll
be spared from facing more serious charges. The DA says
they hazed younger team members, ambushing them with an apparent
(08:32):
gun and knife pointed at one of them before he
was thrown into the back of a car. Global News
twenty four hours a day and whenever you want it
with the Bloomberg News. Now Michael barrn this is Bloomberg Karen.
Speaker 3 (08:43):
All right, Michael barr thank you time now for the
Bloomberg Sports Update. Here's John Stanshauer. John, Good morning, morning, Dann.
Speaker 12 (08:53):
The Yankees finished the series in Baltimore the night after
hitting six home runs, four in the first then in
another first Jitning homer.
Speaker 2 (09:00):
It was hit for the Yankee captain Hi Josh centerfield.
Speaker 4 (09:05):
Holland's back track.
Speaker 6 (09:08):
See what a shot?
Speaker 4 (09:11):
What your run?
Speaker 3 (09:12):
Home?
Speaker 2 (09:12):
One for Judge in his personal play Pat two nothing.
Speaker 12 (09:16):
Yes, yes, never to call Aaron Judge's twenty sixth career
homer at Camden Yards, and he had two more hits.
Finished April with a batting average of four to twenty seven,
but the game ended with Judge on deck, couldn't get
to the plate with the Yanks trailing by iran. Baltimore
won five to four, took two of three in the series,
only the second time the Mets have lost in City Field.
The ninth Enning Valley fell short. Arizona won four to three.
(09:37):
Red Sox lost seven to six ten innings at Toronto.
National's lost seven two in Philadelphia. Win for Colorado two
one over Atlanta. Rockies finished April five and twenty five,
most losses on May first in MLV history. At the
seventh inning of the Cubs game in Pittsburgh, a fan
fell from the stands landed on the warning track in
right field.
Speaker 7 (09:57):
He's in the.
Speaker 12 (09:57):
Hospital in critical condition. Season for the Lakers, they go
out scoring only sixteen points in the fourth quarter in
a one oh three ninety six home loss to Minnesota,
who won the series four games to one. For the Timberwolves,
Rudy Gobert twenty seven points twenty four rebounds, both their
career playoff highs Houston Mcgolden State one thirty one, one sixteen,
the Warriors are still up three to two. The Knicks
(10:18):
are up three too going to Game six tonight in Detroit.
The Nicks hoping to follow the path of last year's
first round, when they also failed to win the series
at home in Game five, but won a Game six
that was in Philadelphia, Washington and Florida. Moving on, Stanley
Cup playoffs, Capitals beat Montreal four to one. Panthers won
six to three at Tampa Bay. Both won their series
in five. Winnipeg beat Saint Louis five to three. John
(10:41):
Stanstedward Bloomberg Sports Kearny Nathan.
Speaker 1 (10:45):
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 Day Break.
Speaker 2 (10:55):
Good morning, I'm Nathan Hager. On a very busy week
for big tech earnings. It is getting off to a
solid start, strong earnings from Microsoft and meta platforms, even
with uncertainty around trade. Here to break it down for
us this morning, Bloomberg Markets reporter Valerie Titel. Val great
to have you with us. Let's start with Microsoft, since
(11:16):
it's seeing the slightly bigger move in the pre market.
Investors there wanted to see whether the demand is still
holding up for AI and the cloud, and it looks
like Microsoft delivered. And then some good morning, Good.
Speaker 10 (11:28):
Morning, Nathan, Yes, Microsoft delivered, and then some shares are
jumping eight percent in the pre market. Beats across the
board revenue, cloud sales, and also a bullish projection over
its cloud business. Investors were also very welcome to see
that it tapped the brakes on capex for the first
time in ten quarters. Investors really like that prudence with
(11:48):
that stock soaring up this morning, Let's focus in on
the cloud business because sales there unexpectedly strong, up thirteen percent.
The cloud business called Azure grew thirty three percent in
the quarter, and they said that in the next quarter,
they are predicting thirty five percent growth that was well
above estimates. Profits were also up eighteen percent from the
(12:10):
same period last year, and almost half of their growth
in that cloud business came from AI services. So it
seems like all that expenditure on artificial intelligence is paying
off and then some. For Microsoft, those shares are up
eight point two percent pre market.
Speaker 2 (12:25):
And interesting to see that they have this sort of
bullish forecast around demand for further AI growth. Could that
hold up if these trade uncertainties continue? How is Microsoft
saying it's going to navigate that?
Speaker 6 (12:40):
Look?
Speaker 10 (12:41):
Microsoft definitely, in the context of the fact that they
are continuing to spend, continuing to invest, is showing that
they are expected to get returns for this additional expenditure.
You know, Meta also said the same thing. They forecasted
additional spending on the back of this. So even though
all of this uncertainty is overhanging, we're still seeing companies
(13:03):
in big tech investing further and I think that is
a bullish thing for US megacap tech.
Speaker 2 (13:08):
Now turning two. Meta, as you say, the spending there
is continuing as well, and it looks like the AD
business is holding up to sort of support that spending
as well.
Speaker 10 (13:18):
Yeah, Meta jumping six point one percent so far pre
market trade. They really did calm investor nerves about the
impact of Trump's trade war on advertising sales. Advertising is
a very cyclical business. Somewhere worried that they might have
seen advertisers pull back on ad spend given all the uncertainty,
but they reported a first quarter revenue that beat expectations.
(13:40):
Ninety eight percent of their revenue comes from advertising, so
they did not show an advertising pullback. They also forecasted
additional spending as I said, and they anticipated continued growth
despite the tariffs. They also showed that the investment in
AI is paying off for them too. They showed that
AI is helping to improve ad targeting and personalization on
(14:00):
the content people see on its social media network. So
another bullish narrative coming out of Meta. Those shares are
up six and a quarter percent.
Speaker 2 (14:08):
Yeah, I guess it has to be said, Valerie that
just the fact that both these companies are even giving
guidance as a Polish sign is so much of what
we've heard from so many other companies. So in our
last minute or so, what does that tell us about
what we could expect later today when we hear from
Amazon and Apple after the closing bell.
Speaker 10 (14:25):
I do think the risk is here, Nathan. We might
get a different narrative because the narrative coming out of
both Apple and Amazon is their heavy reliance on China.
We know that Apple's you know, iPhone supply chain is
very intertwined in China. Amazon has a lot of retail
logistics and advertisers that come from China as well, So
we might get a bit different picture painted by these
two other mag seven's that report later tonight, So watch
(14:48):
out for those any comments about them shifting their supply
chains updating on pricing as well. We'll be watching out
for those kind of warnings with Apple and Amazon later.
Speaker 2 (14:57):
It's interesting to think about in our last minute of
there could be sort of a fracturing of the Magnificent
seven based just on where the supply chains are coming from.
Speaker 10 (15:06):
Yeah, exactly, And you have to have to account for
the fact that Apple and Amazon, you know, they're retailers
of hard goods which are struggling with these tariffs. So
you're right, we might see a bifurcation happen between tech
those who are more focused on the shipments of goods
versus the sell of software that could see some bifurcation
between those two corporates, that saying very good point.
Speaker 3 (15:26):
This is Bloomberg Daybreak, your morning podcast on the stories
making news from Wall Street to Washington and beyond.
Speaker 2 (15:33):
Look for us on your podcast feed by six am
Eastern each morning, on Apple, Spotify, or anywhere else you listen.
Speaker 3 (15:39):
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 to one in Washington,
Bloomberg ninety two nine in Boston, and nationwide on serious
XM Channel one twenty one.
Speaker 2 (15:53):
Plus listen coast to coast on the Bloomberg Business app
now with Apple CarPlay and Android Atuto interfaces.
Speaker 3 (16:00):
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 2 (16:12):
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 Ray
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