Bloomberg Audio Studios, Podcasts, radio News.
Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today, Karen.
If the futures are any indication this morning, the Nansdack could hit another record close today. Alphabet is the main catalyst. Those shares are hired by nearly six percent. This morning, the Google parent showed its expensive foray into artificial intelligence is starting to pay off in earnings that delivered better than expected traction for its cloud computing business and drove
more usage to its flagship search engine. Alphabet Chief executive Officer Sun Darpachai talked about the cloud on the company conference call.
I'm very pleased without growth, this business is real momentum and the overall opportunity is increasing as customers embraced Jenai. We generated Q three revenues of eleven point four billion dollars, thirty five percent over last year, with operating margins of seventeen percent.
Alphabet CEO Soon Darpachai says overall revenue and profit exceeded expectations. Revenue reached seventy four point six billion dollars.
Well, Nathan, alphabeta gains this morning pale in comparison to Reddit. Those shares are at an all time high, surging twenty two and a half percent. The social network operator, which when public in March, reported sales and a forecast that topped analyst estimates.
On the flip side here and shares of advanced micro devices are tumbling this morning. They're down more than eight percent. The chip maker's revenue forecast missed analyst estimates. They say it's a sign, am, these artificial intelligence sales are growing more slowly than anticipated.
Well, Nathan will have more on earnings and the markets in just a minute, but now let's get you updated on the World Series. There will be a Game five tonight as the Yankees stay of off elimination Bloomberg. John stash Hour is here with the very latest, John, all right.
Hearing the Yankees. We're face seen in the elimination in World Series. Game four began yet again with a first inning to run homer by the red hot Dodger Freddie Freeman, but the Yanks load of the bases in the third inning.
Faces loaded two out.
Crisp Fucker redention.
Fox Sports to call on Anthony Valpi Grant's lam Yanks pulled away. Added home runs by Austin Wells. Labor Torre stayed alive with in eleven of four, still trail the series three to one. John Stashiewa Bloomberg.
Sports All right, John, thank you well. John. We'll be back with us in a few minutes for more details and postgame reaction from Game four the World Series.
Now, Karen, let's get to the latest from the presidential race. Kamala Harris delivered her closing argument against Donald Trump with a major speech at Washington, DC's Ellipse.
We know who Donald Trump is. He is the person who stood at this very spot nearly four years ago and sent an armed mob to the United States cap to overturn the will of the people in a free and fair election.
The vice president cast the race as a choice between freedom for every American or chaos and division. She said her presidency would be different from President Biden's.
Our top priority as a nation four years ago was to end the pandemic and rescue the economy. Now, our biggest challenge is to lower costs, costs that were rising even before the pandemic and that are still too high.
Kamala Harris promised to prosecute price goungers, and she outlined her plans for tax breaks for new parents, startup businesses, and first time home buyers. The Harris campaign estimates more than seventy five thousand people turned out for the speech one week before the election.
Oh Meantime, Nathan Donald Trump held a rally last night in Allentown, Pennsylvania, as he continues to face a backlash over anti immigrant comments at Madison Square Garden last weekend. President Biden's seized on the joke that Puerto Rico is a floating island of garbage on a call with Latino voters last night.
Only garbage I see floating down there as his supporters.
His demonizational scene is unconscionable, and it's on America.
Former President Trump seized on that.
Remember Hillary, she said deplorable and then she said irredeemable.
Right, but she said deplorable.
That didn't work out.
Garbage, I think is worse right.
But he doesn't know.
You have to please forgive him, Please forgive him, for he not knoweth.
What he said.
Later, President Biden posted on x that he meant to say trump supporters rhetoric was garbage. Later today, the Harris campaign will run through the battleground states of North Carolina, Pennsylvania, and Wisconsin. Trump has a rally today in Green Bay, Wisconsin, featuring legendary Packers quarterback Brett Farv.
Turning back to markets now, Karen Ubs posted a profit of one point four billion dollars in the third quarter, nearly double what analysts predicted. The Swiss lenders key wealth management unit and its investment bank both outperformed. In an interview with Bloomberg, UBS CEO Sergio or Mahdi warned of headwinds ranging from the US elections to falling interest income.
Well, I think that the US election for sure won't be uneventful. I think that right now markets the markets are pricing a Trump victory and think that if this is confirmed in the remains to be seen is a classical sale of news event.
UBS CEO Sergio or Mahdi spoke with Bloomberg's Francy Laqua. Switzerland's largest bank is still working through the integration of former rival Credit Suites, which it took over last year in an emergency rescue.
Well Nathan, Europe's biggest automaker of Volkswagen, saw its operating margin shrink to its lowest since the COVID pandemic. VW's earnings could boost management's case for drastic measures. In Germany, labor leaders are resisting plans to close at least three factories and eliminate thousands of jobs.
And back here in the US here and there's some optimism this morning. At Boeing, efforts have resumed to end the planemaker's seven week strike. Acting Labor Secretary Julie Sue says both sides held fruitful talks yesterday. The work stoppage for more than thirty three thousand union is taking a toll on Boeing instead of generating cash. In the fourth quarter, the company now expects to burn through around four billion dollars. Time now for look at some of.
The other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael Barr Michael, Good morning, Good.
Morning, Karen. Local and federal officials continue to search for a suspect believed to have set to ballot drop boxes on fire Monday in Oregon and Washington. Last week. Authorities in Phoenix say a number of ballots were damaged when a US Post Office collection mailbox was lit on fire. This all comes as the FBI and Department of Homeland Security warn election related grievances, such as a belief in voter fraud, could motivate domestic extremists to engage in violence
before and after the election. In battleground Arizona, Maricoba County Sheriff Russ Skinner says they'll have zero tolerance when it comes to criminal activity related to the election.
It's one thing for First Amendment, one thing to express your opinion. It's another when there's threatening or other violence that gets centered around this and it's not going to happen here in Maricopa County.
Meanwhile, Jeff Ellington heads run Back election Services. A growing part of its business is now election security.
We recently started selling panic bobs to counties because of all the threats to poll workers.
The devices are connected to nine point one. Ellington says they have sold around one thousand to different counties. Former Trump's strategist Steve Bennon says that his time in prison galvanized him, and he repeated false claims that the twenty twenty election was stolen from former President Trump. Speaking at a news conference in New York. Bannon also said he is committed to helping with letting out the vote and
recruiting poll workers and ballot counters in swaying states. We need to get people in the counting rooms.
We need to get people around the tables to do ballot churing. Okay, So there's still need for that, So we're gonna.
Call for that. Bannon was released Tuesdays, serving four months at the Danbury Federal Correctional Institution in Connecticut for defying a congressional subpoena from the investigation into the January sixth attack at the Capitol. The man who broke into the home of former House Speaker Nancy Pelosi in twenty twenty two and attacked her husband with a hammer has been
given another prison sentence for the attack. As Judge Harry Dorfman was handing down David to PAP's state sentence, Dorfman said it was his intention that the pap never get out of prison. It gives the PAP life in prison without the chance of parole. The sentences on top of a thirty year federal prison term. Global News twenty four hours a day and whenever you want it with Bloomberg News now Michael Barn, This is Bloomberg Karen.
All right, Michael Barr, thank you time now for the Bloomberg Sports Update, brought to you by try Staate Oudie. Here is John stash Hour again. Good morning John, Good morning care.
And it was that Freddie Freeman walk off Grand Slam in Game one that turned this World Series in the Dodgers direction. They won three straight games. The Yankees are hoping the slam hit it in the third inning of Game four by Anthony Volpe does the same for them. Gave the Yanks to five to two lead. Dodgers got it to five to four, but Austin Wells, who had been buried in a deep slump, hit a solo shot at the Yanks put the game away in the eighth inna.
Driven the other way deep ut centerfield.
xCT Fox Sports to call of the Glaber Torres three run homer. Yanks won eleven four, still three to one down. It's a long way to go to win the series. But Aaron Boone happy. He'll be back at the stadium tonight.
We just showed up today ready to play, and you know we're trying to get one, you know, and trying to trying to get the gate, trying to get it to tomorrow. You know, you know, you don't even get ahead of yourself and start thinking about the series. It's like our guys were ready to play. Obviously a lot of really good at bats, you know. Volpi with a big blow.
Good Tonight starts his as Garrett Coles. He Yanks to try to get the series back to La. The White Sox, named Texas coach Will Venable, their new manager, takes over a team that just had the worst season in MLB history, and Barkley's too much.
Da Kola Jokic.
Twenty nine points, eighteen rebounds, sixteen assists denverby the Nets one nine in overtime. Rangers lost five to three and Washington two goals for Alex Ovechkin thirty eight more and he breaks Wayne Gretzky's record for most goals in NHL history. Islanders lost to Anaheim three to one for ruin shut out by Philadelphia two to nothing. Quarterback change in Indianapolis, the Colts benching twenty two year old Anthony Richardson. They'll
start thirty nine year old Joe Flacco. The PGA Tours Advisory Council recommending changes that would begin in twenty twenty six. They include a reduction in the field size for some tournaments players who had a better chance.
Of completing their runt.
John Stashedwad of Bloomberg Sports, Karen and Me.
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. Good morning, I'm Nathan Hager. Artificial intelligence maybe starting to pay off. That could be the biggest takeaway from the biggest of the big tech companies that supported earnings so far this week, Google parent Alphabet posted solid results all around after all
the spending it's done on AI. Here to break down the numbers for us is Bloomberg's Valerie Titel Valerie good morning. Looks like solid results all around on the main metrics.
Yeah, great story from Alphabet. They reported healthy gains in both revenue and profit. As that companies, you know, their big bet on AI really showed signs of paying off in their results last night. Revenue excluding partner payouts increased to seventy four point six billion. It's upset sixteen percent year and year and ahead of the average analyst expectations of seventy two point nine billion. Net income was also
a beat on expectations. It was at two dollars and twelve cents per share, compared with estimates of one dollar and eighty four cents per share. Excuse me, As its main search business matures, Googles really looks for other ways to get revenue, and most that has been focused on its cloud division. It's a big bet on AI and the Google's sales actually reached a new high for the third quarter, and the sales specifically in the cloud division
jumped to eleven point four billion. It's a thirty five percent rise from a year ago and better than analysts across the street had projected. Now, the CEO said the numbers are encouraging. In a letter to investors last night, he said, our cloud AI solutions are helping drive a deeper product adoption with the existing customers and attract new
customers and win larger deals. Now, Google does have the negativity of the US antitrust litigation weighing on it, and in that same note, the CEO did warn that the US government's resolution of that anti trust case could have quote unintended consequences for US leadership and tech. So a bit of warning there to the Justice Department on that litigation. But overall, very positive results from Alphabet based on that
growth in the cloud services. Those shares are a five point four percent pre market trade.
So after those results and the revenue beat on the cloud where is the bar now? What is the run rate for AI monetization for Google going forward?
Well, look, it still really does. It's Google is the third in the market for cloud services, alongside Amazon and Microsoft, who are a bit ahead of it in that sector. But analysts do see that there is room to grow and they are positive on it. This is really a
step in the right direction. What we saw from Alphabet in their earnings yesterday that this big bet, this big investment is starting to pay off and that they can move away from their AD revenue from their main search business and find a new avenue for growth.
But you get have a different story this morning for Advanced micro Device is that it's the forecast that really seems to be the weight on that stock this morning.
Yeah, their revenue forecasts from AMD really missed the analyst estimate, and it's a sign that it's artificial intelligence sales are growing more slowly than some had anticipated. It sparked a eight percent drop in the share in post market trade. It's continuing to hold that in the pre market as well. That's a racing nearly half of the AMD's gains on the year. So, despite growing AI accelerator sales, AMD still lags decently behind Navidia in the lucrative market, with its
sales expected to reach only five billion this year. I say only five billion because you look at Navidia's AS sales. They trump that in multiple But on a conference call following the results, the CEO pushback on concerns that AMD isn't delivering enough growth, saying the company is ramping up product and earning the trust of large data center companies that do rely on AI accelerators.
So, on our last minute val how does this set us up for the other big tech companies that are going to be reporting today, Microsoft in particular, I have to think has a lot of scrutiny around it on AI.
Yeah, we hear from Microsoft and Meta later today, that would be after the bell. But also I want to just touch on Reddit briefly. Those sares are surging twenty two percent after the company sales and forecast beat expectations. You know, this is a share that went public only just past March, and it's now three trading nearly three times it's ibo price, So a lot of positivity around Reddit shares falling through the pre market trade. They're up twenty two percent.
This is Bloomberg day Break, your morning podcast on the stories making news from Wall Street to Washington and beyond.
Look for us on your podcast feed by six am Eastern each morning, on Apple, Spotify, or anywhere else you listen.
You can also listen live each morning starting at five am Wall Street time on Bloomberg eleventh 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.
Plus listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Atto interfaces.
And don't forget to subscribe to Bloomberg and News Now. It's the latest news whenever you want it in five minutes or less. Search Bloomberg News Now and your favorite podcast platform to stay informed all day long. I'm Karen Moscow.
And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Dbreak