Good morning.
I'm Brian Curtis and I'm Doug Prisner. Here are the stories we're following today.
Donald Trump's former chief of staff, Mark Meadows, has been granted immunity in the Special Council investigation the January sixth probe, and Baxter has that story and the rest of the global news from the nine to sixty news women in San Francisco.
Ed, all right, thank you. Brian Meadows was Trump's final chief of staff and this means he will not be prosecuted, so to say. Before the grand jury, he repeatedly told Trump that the claims of election fraud were baseless. Meadows is a central player in the investigation by Smith investigating the claims that Trump and his allies sought to overturn the election. Now there is more Trump trial news. We'll get there in just a couple of minutes. The House
Speakership has been thrown into more disarray. That was quick number three down and out. Tom Emmer has dropped his bid for speaker. Earlier in the day, he reportedly was twenty six votes short as well. Donald Trump came in in opposition former House Speaker. The former House Speaker says a core problem is not being addressed.
If you don't deal with the consequences of the eight who worked with all the Democrats to put it in here, putting a new person up each time, we're going to be in the same place we were before.
Yeah, that of course is Kevin McCarthy. So what you have within the party is the Trump supporters who will not vote for anybody who voted to certify the twenty twenty Electoral College and those who didn't. And Bloomberg's Wendy Benjaminson says, the effort to get the Democrats to get a speaker elected does not seem that will happen.
What's in it for Democrats at this point to join the fight or to try to solve the fight for the Republicans, there's an old political ada as you know that when your enemy is drowning, throw them an anchor or just watch. And I think at this point, I mean, the scroll of concessions that Republicans would have to make to Democrats to get them on board right now is impossibly long.
So the mess is still a mess you and Secretary General Antonio Geta says Israel needs to pull back from its bombing campaign. Says while Hamas attacks are unwarranted.
It is important to also recognize the attacks by Amas did not happen in a vacuum. The Palestinian people have been subjected to fifty six years of suffocating occupation.
Meanwhile, Israeli Ambassador to the UN, Gelard Ardon, says Gutaris needs to step.
Down, mister Secretary General. The UN was established to prevent atrocities, to prevent such atrocities like the barbaric atrocities that Hamas committed, but the UN is failing.
Israel's Foreign Minister Eli Cohen has counseled today's meetings with Guteras. While the air attacks persist, their efforts by the US and other Israeli allies to try everything before going in Bloomberg's Oliver Crook and Tel Aviv says today.
Even dropping flyers on Gaza saying basically that if you have any information with phone numbers and the sort of thing about where hostages may be being held, offering money, saying that there will be safe passage and trying to ensure the safety of those who basically have any information on where these hostages are being held within Gaza.
And the Pentagon is sending Israel the US Armies two batteries of iron dome radar command posts and interceptors to boost the nation's defense of Bloomberg. Source says it isn't known how soon or when at this point. Former Trump fixer Michael Cohen on the stand today and the New York civil suit against Trump valuations Cone, testifying that he followed Trump's orders and as did the rest of the team Trump now going into court the Rumen Wire.
You know, fella serves a lot of time, Ali and where there still received did you see.
It as you s and Cohen.
This is not about Donald Trump versus Michael Cohen or Michael Cohen versus Donald Trump. This is about accountability.
The judge will make the determination in the suit. Global News twenty four hours a day to and whenever you want it with Bloomberg News now in San Francisco. I'm Ed Baxter, and this is Bloomberg Brian.
Ed, thank you. I'm Brian Curtis along with Doug Krisner, and we look now at some of the top business stories of the hour. Alphabet reported third quarter revenue and profit from its cloud business that missed analyst estimates, and this raises some concerns as investors were looking to the cloud to take the lead on company growth. Alphabet is the third largest player in the cloud market after Amazon and Microsoft. We hear now from Bloomberg's Man Deep sing.
Cloud a little bit off a leaddown, but not surprise given you know everyone right now is talking about generative AI and they are kind of making their twenty twenty four plans. It hasn't really translated into cloud revenue.
Man Deep Sing the cloud results marred and otherwise healthy report third quarter sales and profit beat analyst expectations. Alphabet shares it down around about six and a half percent in late trading.
We also heard from Microsoft after the bell. The The company reported first quarter revenue rows thirteen percent, So we're talking top line now of fifty six point five billion dollars. That was above estimates and it represents Microsoft's strongest sales gain in six quarters. The company's new artificial intelligence products seem to be prompting corporate customers to spend Here is James Kakmak is tech analyst at Clockwise Capital.
Yeah, I mean the big thing there is that you continue to see resilience on the cloud side while the legacy parts of their business anniversary, the tougher comps and come out stronger so and at the same time while being able to manage the bottom line. And obviously it's a Juggernaud it's ten percent of the queues and so it's a big way of important stock for the market.
But the main thing is that growth, the growth sector factor continues to be where the money will likely continue to flow and coming out of the value area.
The James kakmak there from Clockwise Capital Brian and right now I've got shares in Microsoft up three and a half percent in late trading.
Yeah, actually did quite well in alfour hours and Goo in the other direction from Google.
Well.
Texas Instruments was also out with its report. It had a disappointing revenue forecast for the third quarter. The story from Bloomberg's Charlie Pellett.
It indicates that demand remains sluggish for a broad range of electronic components, including industrial equipment. TI said revenue in the fourth quarter will be three point nine three to four point two seven billion dollars. Now that compares with an average analyst estimate of four point four to nine billion. The outlook boats poorly for a chip industry that is
trying to recover from a punishing slowdown. Texas Instruments has the broadest list of customers in the semiconductor industry, making its forecasts a bell weather for demand across the economy. In New York, Charlie Pellett Bloomberg Radio, we go to Snap.
We're seeing shares down four point eight percent in late trading.
Pardon me, we go to Snap next. The company returned to revenue growth through the third quarter after two periods of declines. The company has spent much of the year working to revamp its ad business for its Snap Chap app. Already that app has more than five million subscribers. Separately, Snap said it's seen a large number of brand focused ad campaigns pause during the third quarter after the start of the Israel Hamas War, and it's now expecting this
delay to continue into the fourth quarter. Right now, shares in Snap little changed in late US trading.
Well.
China is stepping up support for the economy with massive debt issuance. Bloomberg. Chuan Wong has the story from Hong Kong.
China's legislature approved a plan to raise the fiscal deficit ratio for twenty twenty three to about three point eight percent of GDP. Shinhua said the plan would include issuing additional softeign debt worth one hundred and thirty seven billion dollars in the fourth quarter. The additional debt would be used to support disaster relief and construction. China has rarely adjust at his budget midyear. The last time was in two thousand and eight in the aftermath of a Sichuan earthquake.
The latest budget revision shows that top leaders are concerned about China's economic outlook. Just yesterday, President Chi Ching Pain made what sought to be his first ever visit to the Central Bank since he became president. In Hong Kong, joined Wong Bloomberg Radio.
Again Brian Curtis and Doug Krisner. And this is Bloomberg. Our guest is Eric Wasason Bloomberg, congressional reporter, who's right outside the room where they are strategizing on what comes next. Eric, Eric, thanks very much.
So.
This is really difficult for Republicans, but the host majority whip Tom Emmer down out of the race. It's the third speaker designy that has sort of tumbled out of this, I want to know procedurally, setting aside the embarrassment of all of this for the moment, procedurally, what comes next.
Well, right now, they're meeting in what's called a candidates forum. According to the House Republican rules, every time they run for a speaker race, they've got to meet in the Candy It's former forum where they have a chance to give speeches and then also answer questions from the members. This happened last night where Emmer and others answered questions and then we're the votes to say and we're one.
And then you know, after twenty six Republicans came out against Emma and Trump went on truth Social to really bash him. He dropped out. So now we're back to the candidate's forum. There's a bunch of candidates who have jumped in again, all from the South. I had noted, note all all men. And they are now, you know, presenting their case to the to the conference.
The peers is though, according to their aides, Representative Kevin Hearn of Oklahoma and Mike Johnson of Louisiana are two of the prime candidates now seeking speakership. Is this likely what it's going to come down? To one of these two gentlemen.
You know, they would say Johnson's probably the front runner. He got the most votes ninety seven votes when he was up up against Emmer. But you know, Herne is a strong candidate. He's the Republican Study Committee chairman. That's the largest caucus in their Publican party, you know, the conservative but not as conservative as the House Freedom caucuss
which are really the ultra conservative. That group is running two people, Mark Green of Tennessee and also Byron Donalds of Florida who ran before to kind of split their vote a little bit. A couple of surprise entrances into the race. Chuck Fleischman of Tennessee. He's an appropriator Energy Spending Panel chairman. You know, he would sort of probably be representing the appropriations, more traditional establishment view, you know,
he's jumped in. And then Roger Williams of Texas, also a very minor figure in the House, but someone that could be a small business committee person, you know, who could potentially again emerge as a consensus candidate. Everyone else deadlocks.
How facetious is it to just say, why don't they just ask Donald Trump who he wants in there?
You know, I think Trump will probably stay out of this. He had a personal animosity towards Ember because Emmer wouldn't vote to overturn the election. There were other, you know, spats over the years. Emmer also had voted to basically preserve a gay marriage right, something that conservatives didn't forgive him for. You know, I don't all the candidates that are in there now all voted with Trump to overturn the election, So I don't think he's really going to
care too much between them or to weigh in. I mean, it could be wrong, but I don't see him generating at any of these cannies generate the same opposition that Emmer did in Trump world.
One of the things that we're trying to understand visa VI the market is whether Treasury market in particular is concerned about moving up against a deadline for funding that would necessitate a government shutdown. Is that being talked about. Is is the GOP feeling any pressure to find a speaker quickly?
Definitely the moderates, you know, we hear that them saying, you know, Kelly Armstrong and moderates from North Dakota that it's all about voting a shutdown. That's the real deadline here, you know, getting up against that November eighteenth deadline. When Congress has to act. It will act, but it will dither, procrastinate, infight ontil that very much. But you know this is this is a decision by committee. In some ways, that's
how democraphy works. But this is particularly egregious and disorganized compared to my fifteen years old here watching this. You know, they really need to get this back together as a prelude to figuring out how to meet that deadline.
How much power does the speaker ProTem Patrick McHenry have at the moment, You.
Know, it's a matter of controversy. Kevin McCarthy, the former speaker, which is out here saying he already has the power, he should just start acting. The Kenry has interpreted that he doesn't. And interestingly, you know his actions so far, you know, the way he's acted has sort of set a precedent and if they try to force it, how he decides to set a precedent and the rules us to exactly have how much power he has, and they
could simply elect him speaker ProTem. There has been that long history of temporary speakers, you know, for example, when Ingrish went out of town in nineteen ninety six to stave Murphy Brown and Hollywood, they had one you know, she signed a big telecom law. This has happened before, but he's been reluctant to embrace this idea and others felt like they need the you know, the lack of an empowered speaker ProTem to get this real speaker vote going.
The longer this drags out, the more that becomes a possibility.
Eric, what are we hearing from the Democrats this time?
You know, Democrats have indicated, including Dean Phillips of Minnesota, that he might be willing to support or help out Tom Emmer. You know, if it exchange for some concessions like funding the government at at sort of negotiated levels. You know, that was met with some resistance from others and the Democrats they would be willing to do some deal.
It's not quite power sharing, they realized that's probably unrealistic given the US system, but you know, more ability to bring their priorities to floor for up or down vote.
But they have not been given any sort of deal on that, so they're sort of waiting saying, you know, we'll help out, but we need to get something for this, and it could come to that, but I think that's probably the third most likely option after the House Republicans finding it at this person or mckenry getting some kind of temporary power to move a spending bill.
And and what are the sorts of deals that are happening on the Republican side, You know, I.
Think it's really there's no deals right now. I mean there could be deals. If we see a nominee come out in voting as soon as tonight that doesn't have the full two seventeen. He could go the same route of trying to get sort of backroom deals that Jordan did. You know, Jim Jordan had more of a personal problem or legacy with some of the more mainstream Republicans, having spent years calling them Republicans and name only and pointing
out in their flaws. Some of these other men in there, like Mike Johnson and Kevin Hurt don't really have that history. Someone describes them as, you know, the same menu but different later. They're not that antagonistic history, So they might be able to pull it off where Jordan didn't. But I see it's sort of potentially going down that road. Of the next couple of.
Days very quickly, Eric, do you have a timeline for what the procedure will be going forward.
Well, they're having this candidate for him now, and then after that. Some members are saying they're going to vote tonight. Maybe they're just too exhausted to do that. But we have seen before, especially it's very common on the Senate side that Congress will go into the midnight hours to resolve things, hoping that exhaustion weirds down people. So I'm not ruling that out. It could be a late night here on Capitol Hill.
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