Apple, Amazon Fall and Zuckerberg's Big Day

New Jersey councilwoman is still on the loops. I'm Michael blar More Ahead, I'm John stas Shower. In sports, the next held on for a two point winning home over Miami. Julius Randall named at NBA All Star. That's All's train ahead on Bloomberg day Break on Bloomberg eleven three, on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, and Francisco Sirius x M one nineteen and around the world on Bloomberg Radio

dot Com and via The Bloomberg Business. Good Morning, I'm Nathan Hagar. And I'm kerin Moscow. Here are the stories we're following today. We begin with earnings from a trio of tech heavyweights weighing on markets this morning. Let's start with Apple. The shares are down more than three percent after the company reported its worst holiday performance in four years. Supply chain issues and an economic slump are being blamed

for weaker iPhone sales. Here CEO Tim Cook, as a result of a challenging environment, our revenue was down five percent year over year. We remain confident in and focused on the long term opportunities. Apple CEO Tim Cook says there are signs of a rebound in China. He also says production problems are subsiding. Shares of Amazon also taking a hit this morning, Nathan, They're down to five and a half per cent. The company is protecting lackluster revenue

for the current quarter. That's causing rory that the company's e commerce business has stalled. Sales growth has slowed in the cloud computing division. CEO Andy Jasse says curbing spending is his top goal. Probably the number one priority that I spend time with the team on is reducing our costs to serve in our operations network. Amazon CEO Andy Jazz started a new round of job cuts last month and that will eliminate eighteen thousand positions and rounding out

the Big three. Karen. Shares of Alphabet are also falling down about four percent after fourth quarter earnings missed estimates. Let's get the details live with Bloomberg. Steve Rappaport. Good morning, Steve, Good morning, Nathan, and Karen. Google's parent company reported fourth quarter sales of sixty three point one billion dollars a million dollars shy of expectations based on data compiled by Bloomberg. The lackluster results come as Google's core advertising businesses under

scrutiny from the Justice Department. It also faces competition from emerging players such as Open Ai, s Chat, GPT. Alphabet acknowledges the challenges ahead Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. A right, Steve. Thanks. So we're also seeing earnings disappointments outside of big tech. Shares a ford Or down more than six percent after profit fell short of estimates. For it has been ramping up electric vehicle production while

struggling to make money on its plug in models. We have a flip side Karen. Shares of Nordstrom are surging this morning. They're up thirty percent. Bloomberg News has learned Meme stock investor Ryan Cohen has built a sizeable steak in the department. Short chain. Sources say Cohen's trying to replace at least one of Nordstrom's directors. Yesterday was a

big one for Mark Zuckerberg. By the end of the day, Nathan the Facebook CEO, saw his fortune jump by more than twelve billion dollars, and we get the story from Bloomberg Shirley Pellett. The surge came after he vowed twenty three will be quote the year of efficiency for his social media giant Metal platforms. The thirty eight year old CEO is rebounding from his worst year on record, with his wealth tumbling from a peak of one two billion

dollars in September of one. According to Bloomberg Data, Zuckerberg now has a net worth of about sixty nine point eight billion dollars in New York. Charlie Pellette Bloomberg Daybreak, Thanks Charlie. Well, another billionaire has lost a massive amount of wealth this week. Got Tomadonni's Empire has now lost more than half its market value since that report from

Hindenburg Research. The short seller accuses a Donnia fraud. So far, more than a hundred eighteen billion dollars have been raised from the value of the ten stocks tied to a Donny back. Here in the US, Nathan, a big name on Wall Street, is weighing in on last year's text sell off. Our investment CEO Cathy would and midst two was a horrific year for her flagship innovation et F, but Wood is making a bold claim about her fund's

long term potential. Oh, by the way, we are the new Nastack, which is one of the ways we were trying to convey look if you want to look at the future and truly disruptive innovation the way the Nasdack, the NASDAC performed in the eighties and nineties, that's where we went and our investments. Kathy Wood says she still thinks bitcoin will top a million dollars in the next decade. She spoke with Carol Masser and Tim Stenovic on Bloomberg Business Week and catch the show weekdays at two pm

on Bloomberg Radio or watch it live on YouTube. Let's turn away from tech specifically now, Karen and focus on the broader economy. It's been all about the Fed this week, but today it's about jobs. We get the government's monthly employment report for January this morning, and we get a preview now from Bloomberg Economics correspondent Michael McKee. Payroll of forecasts ranged from one thousand all the way up to three hundred twenty thousand, but most are skewed to the downside.

The number that matters most will be average hourly earnings. The Fed sees wage pressures as the biggest inflation danger. Now economists see unemployment continuing to be the dog that didn't mark. Just a small tick up in the jobless rate forecast. Michael McKee, Bloomberg Daybreak. All right, Michael, thank you. And in Europe this week, the Bank of England height rates once again, but now the central Bank is signaling

they may be nearing the end of tightening. That's the message markets took away from Andrew Bailey, but now he's sounding a little less sure. The b o A governor sat down for an interview with Bloomberg's Francy Laquax after this latest policy decision. We all kind of react to the information and the evidence that we see. We're not on We're not we haven't pre announced an intention because we have reached a point in as I've said for I think we have started to turn a corner that's encouraging.

There's a long way to go and there are a lot of risks. Policymakers led by Andrew Bailey, voted seven to two to raise interest rates by fifty basis points. It's thirty two degrees in Central Park. It's gonna stay cold today. Early highs in the thirties. Temperatures will fall through the afternoon. By tonight, we're gonna be down in the single digits. But with the wind chill, it's gonna

feel even colder. And it's gonna look at some of the other stories making news in New York and around the world with Bloomberg's Michael Barr, Good morning, Michael, Good morning, Nathan. The US and China are facing a number of diplomatic and geopolitical prompt Bloomberg said, backs to report, you can add a Chinese high altitude spy balloon. The Pentagon says for several days it has made its way over the northern US. Pentagon spokesman Brigadier General Pat Ryder says a

Pentagon has decided not to shoot it down. Balloon is currently traveling at an altitude well above commercial air traffic and does not present a military or physical threat to people on the ground. Instances of this kind of balloon activity have been observed previously over the past several years, and writer says they will not say where it is

now in San Francisco. I'm at Baxter Bloomberg Daybreak. Investigators in say or Ville, New Jersey, so far have no motive and no arrests in the shocking apparent targeted murder of a local councilwoman. Thirty year old Unitst One four, who had only recently taken office, was discovered dead Wednesday night in her SUV of multiple shot gun wounds. The shot was sitting. She was shot while sitting behind the wheel of her vehicle. House Republicans vote to kick Democratic

Congresswoman Iohan Omar off the Foreign Affairs Committee. Signing your past comments viewed as anti submittee. House Speaker Kevin McCarthy says their comments while serving on the committee could threaten national security. It's not right, We were right in her action, and she can serve on other committees, but it puts America in jeopardy and I'm not going to do that

under my watch. However, Democratic Leader Hakim Jeffreys of New York says Omar has sense apologize for those comments and called out some House Republicans for their own comments, saying that they are still remaining on committees fact stone matter with this extreme Maga Republican majority. Hypocrisy is not a constraint to their behavior and shamelessness. They believe is a superpower and that will all be exposed for the American teacher.

Representative Jeffrey says the vote is payback for when Democrats were in charge of the House. Natural gas prices skyrocketed in New York and Boston has bitter cold as sends that boost a man for the heating fuel. Next day gas deliverieson to a section of the Iroquois gas pipeline that Hall's Canadian gas into New York traded at a twenty year high. Global News powered by more than journalists and analysts and over a hundred twenty countries. Michael Barr

and this is Bloomberg. Nathan thank you, Michael. Time now for our Bloomberg Sports up tape for I tries stayed out. He Good morning, John Stanish, Morning Nathan. The Knicks have lost a lot of home games this season. They've blown a lot of leads. At the Garden, they led Miami by five points with five seconds ago and nearly lost the Heat hit a three pointer that a Nick turnover, and Tyler Hero was nearly the hero, but he missed the game winning three point and the Knicks survived one

of six one four. R J. Barrett, who in that overtime recent loss of the Lakers, sat on the bench, this time, led the Knicks with thirty points. Julius Randall scored twenty three. His season has been much better than it was a year ago, and Randall has been named to play in the upcoming to the NBA All Star Game. Jalen Brunson did not make it. Brunson didn't play last night. He was outsick. There was a nasty fight in the game between Memphis and Cleveland. Dylan Brooks and Donovan Mitchell

went at it and nearly spilled into the stands. Another went for Denver, who leads the West seventeenth triple double for Nicola. Yoki Jana's sons and the Compost scored fifty four and a comeback win from Milwaukee. It's his third fifty point game of the past month. Lebron James at twenty six in a Laker when he now needs sixty three points to become the NBA's all time leading score.

It is Super Bowl fifty seven. It is the first where both quarterbacks Patrick Mahomes and Jalen Hurts are African American. In Kansas City, Mahomes was asked about the significance, but be on the world stage, Um, and uh, have two black quarterbacks starting the Super Bowl. I think it's special.

And I've learned more and more about the history of the black quarterbacks since I've been in this league, and uh, the guys that came before me and Jalen set the stage for this, and now I'm just glad that we can kind of set the stage for guys that are kids that are coming up now. Doug Williams was the first Super Bowl black qub That was thirty five years ago.

John Stashwer Bloomberg Sports Live from coast to coast, from New York to San Francisco, Boston to Washington, d C nationwide on Sirius, xamp, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar, and we are wrapping up a busy week for tech earnings with a wave of disappointing results for the big three a's in the sector. That would be Apple, Amazon,

and Google parent Alphabet. The latest sign that the economic slowdown is crimping demand in just about every business that these tech companies encompass. Let's get more insights this morning from Dan Ives, managing director and senior analyst at web Bush Securities, who has been a pretty bullish voice on tech for some time. Dan, it's always great to speak with you. We'll start with the company that you cover, specifically Apple. The worst holiday quarter for the iPhone maker

in four years. Does that come as a surprise to you. Look, I think it's really supply chain driven. I mean this was not a demand issue. Was supply because of the China COVID lockdown. They're seeing acceleration going into this quarter. I think that really is going to take the street by surprise and a positive And this was better than

see it overall. It's interesting though, because it wasn't so long ago that exposure to China and the supply chain issues there was seen as a pretty significant headwind for Apple, and it's been trying to unwind some of those supply chains. Do you think it's going to be a tailwind with China reopening now? Well, I think you hit the nail

on the head. You're now starting to see a town and emerged and and Tim Cook could have easily just used a macro card and be massively conservative instead talked about China accelerating and demand of course caution, but still firm. That's not what the bears were open for. And that's why I believe this the stock and you know, I'd be shocked if it's not in the green by the

end of the day. Well, is there a possibility though, given the economic headwinds that we're still seeing a lot of consumers pulling back on some of their spending, that consumer demand could crater in the months to come. Yeah, Look, I think consumer then definitely could soften. And I think that's that's already factor into this stock. And I think too all these names, but you're talking about to come bearing a two hundred fifty million iPhones that haven't been

upgrade in four years. That's why they have a golden installed base, which makes them much more of a rocket Gibraltar stock in this iCal economic storm. All right, let's turn to Amazon. Do you see that as a rocket Gibraltar stock as well? I mean they've been cutting costs pretty significantly even before they reported earnings. Yeah, Amazon, when they were spending money like nineties rock stars, and they need the car costs now and that's what they're doing here.

And I think it's a tail of two cities. Cloud continues to be strong for them, softening a bit like Microsoft, but that is really a pillar strength the e commerce piece, you know, that's still coming off, you know of what was really almost a hangover coming off of covid in terms of what they're seeing from growth. That's something they're going to continue to grap with over the coming quarters.

How concerned should investors be that Andy Jesse is talking about a slow down in growth for Amazon Web services? Is the cloud sector for Amazon starting to lose some ground against some of the competitors like Microsoft, Azure in Google Cloud. Look, I think it's really redymen. It's what's happening with Microsoft, they're gaining incremental share versus Amazon, and you're also seeing Google as well as IBM and Oracle and Cloud is slowing a bit, but when you look

at growth, you're still talking off a massive numbers. So I think this is something that that's really dig tested. Street overall was expecting much more arm and getting You've got softness, but nothing I think that anyone thought would be ultimately be seen when it comes to Amazon holding up better than expected on Cloud, and in terms of Alphabet, the Google parent a modest miss there, but another sign of the tough digital ad environment that we've been talking

about as we've made our way through tech season. How does Alphabet get through this rough patch? Yeah? I mean YouTube are clearly softened a bit, and I think for them it's really about navigating these digital advertising headwinds. But they're cutting costs, cutting costs significantly. That's something the street wants to see because you're preserving margin, preserving profitability, and anythink just so much bad news is baking to these

tech names. You can't take a step back on Alphabet, Amazon, of course, Apple better than fear, and I think these stocks ultimately rally from here about thirty seconds here, Dan, how long do you think in the tech sector is going to need to be in this retrenchment mode. Look, I think these companies were spending just assuming hyper growth is going to continue. The clock struck midnight, and now

they're ripping the bandit off and cutting costs. But I think now we're starting to get to a point where over the coming months of the soft land he does take cold these companies actually start hiring leader in the year, And I think that's really the narrative here. Tech growth is not falling off a cliff, it's softening. That's better than feared, especially with the army getting like your expectations

going tech earning seed. This is Bloomberg day Break Today, your morning brief on the story is making news from Wall Street to Washington and beyond. Look for us on your podcast feed at six am Eastern each morning on Apple, Spotify and anywhere else you get your podcasts. You can also listen live each morning starting at five am Wall Street time on Bloomberg eleven three oh in New York, Bloomberg in Washington, Bomberg one oh six one in Boston,

and Bloomberg nine in San Francisco. Our flagship New York station is also available on your Amazon Alexa devices. Just say Alexa play Bloomberg BLUs. Listen coast to coast on the Bloomberg Business app, Sirius XM Channel one nine, the I Heart Radio app, and on Bloomberg dot Com. I'm Nathan Hager and I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak