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, this stock sell off is intensifying around the world.
This morning.
In Japan, the topics sank six point one percent that completed a two day drop of nine point two the biggest route over two days since Japan's tsunami back in twenty eleven. US futures, as you mentioned, are sliding once again after yesterday's Wall Street sell off, following data that showed weekly unemployment claims hit a near one year high while manufacturing shrank. Cam Harvey, professor at Duke Business School, thinks the FED is behind the ball again.
The FED is very late again. So they were late to raise interest rates when they were kind of brushing off the inflation surge, and they're late to reduce the rates, and the cost could be very substantial.
Duke Business Professor Cam Harvey thinks one of those costs could be a hard landing. Meanwhile, a rally in treasuries is now into its seventh straight day, and again checking the ten yurar, it's up six thirty seconds now. The yield three point nine to five percent. The two year is at four point one four percent.
Well, Nathan, All of this makes this morning's jobs report at crucial data point four investors. The forecast is for a gain of one hundred and seventy five thousand non farm jobs in July. We get a preview from Bloomberg's Michael McKee.
The forecast is for a slight cooling in the labor market during July, but the risk for Wall Street and the Fed is a more dramatic drop in hiring and or a large rise in unemployment. Jobs data from adp ISM and initial jobless claims have come in weaker than expected in the past few weeks. At their meeting Wednesday, FED officials acknowledged a payrolls led economic slowdown is now as much of a risk as higher inflation. A bad news report today could raise questions about their decision to
hold rate steady this week. Investors have already priced in rate cuts at the next four FED meetings. Michael McKee Bloomberg.
Radio, Thanks Mike. Adding the pressure to stocks as well some disappointing high tech earnings led by Intel. Those shares are plunging nearly twenty two percent The chip maker forecast revenue for the third quarter below estimates and is suspending its dividends starting in the fourth quarter. James Kacmac is a technology analystic Clockwise Capital.
They have to write the ship somehow because the growth is.
Just anemic, and one way to do that is to find.
A way to grow.
Again, or you can fix things on the expense side.
And it looks like they're giving up on the former and going toward the.
Ladder to that point. Clockwise Capital James Cackmac notes Intel plans to slash fifteen thousand jobs well Nathan.
Shares of Amazon are down more than eight percent after years of cutting costs. Investors are sern the company is returning to a boom in spending. In an earnings call, Amazon's CEO Andy Jasse warn profits will have to take a back seat so the company can invest in artificial intelligence.
It remain very bullish on the medium to long term impact of AI and every business we know and can imagine.
The progress may not be one straight line for companies. Generative AI especially is quite.
Iterative, and companies have to build muscle around the best way to solve actual customer problems.
Amazon CEO Andy Jasse projected operating income for the current quarter will be eleven and a half billion to fifteen billion dollars. Analysts, on average, we're looking for fifteen point seven billion.
Well, meantime, Karen, Apple is bucking the sell off trend somewhat this morning. The shares are down, but only by two tenths of one percent. Apple's predicting its new artificial intelligence features will spur iPhone upgrades in coming months and will help the company re emerge from a sales slowdown that hit its business in China, especially hard. Mark German covers Apple for Bloomberg News.
Apple intelligence is really the big upgrade on the iPhone that they're trying to sell this year. They talked about AI so much on this call. I haven't heard them talk about AI so much since their Developer's conference in June, or maybe ever.
Bloomberg technology reporter Mark German says, Apple projects total sales in the September quarter we'll grow at about five percent. Wall Street projected a four percent clip.
Well, Nathan, we'll have more on the market sell off in tech earnings in a few minutes. But now President Biden is celebrating a major win in global diplomacy. The President was a joint based Andrews outside Washington last night as Wall Street General reporter Evan Gershkevich, former Marine Paul Wheeland,
and journalist al su Kermasheva came home. The three Americans are part of the largest prisoner swamp with Russia since the Cold War, and President Biden said it couldn't have gone done without support from US allies, and what I said.
Lines has making difference as we stepped up, but took a.
Chance for that mattered a love.
President and Biden was joined on the tarmac by Vice President and new presumptive Democratic nominee Kamala Harris.
I'm very thankful for our president and what he has done for his entire career, put in particular as it relates to these families of these.
Individuals, Vice President Harris, as the exchange did not come easily and returned for the Americans and other prisoners. Russia won the release of Adam Krazakov, who had been serving life in Germany for killing a Chechen separatist. Germany had long resisted Krasakov's release.
Well now Karen, President Biden faces a diplomatic challenge in the Middle East. The President told Israeli Prime Minister Benjamin Natan Yahoo to agree to a cease fire with Hamas the two leaders spoke yesterday, Biden did pledge to support Israel against renewed threats from Iran and allied militias like Hesbolat Nathan.
The UMSS has recognized Venezuelan opposition presidential candidate at Mundo Gonzalez in the disputed election, and Bloomberg's Ed Baxter has that story from US.
Secretary of State Anthony Blincoln says it is clear to the United States and most importantly to the Venezuelan people, that Gonzalez has won the most votes in the July twenty eighth election. Blencoln goes on to say that the United States congratulates Gonzales on a successful campaign and hopes that discussions on a respectful, peaceful transition will occur. Opposition leader Maria Corrina Machavo meanwhile says she is in hiding, fearing for her life. Ed Baxter Bloomberg.
Radio, Okay, and thank you. As for US politics, we have a winner in a primary race from more than a month ago. A Trump back to candidate has defeated the chairman of the Conservative House Freedom Caucus in Virginia's fifth congressional district. State Senator and former Navy seal John McGuire has been declared the winner over Congressman Bob Good by just three hundred and seventy votes out of nearly
sixty three thousand casts. Before the recount, McGuire's lead was three hundred and seventy four votes.
Nathan and Vice President Kamala Harris's camp Haynes, says she's raised a record at three hundred and ten million dollars in July. Harris's hall more than doubles nearly one hundred and thirty nine million Trump Rays last month. Harris's campaign says grassroots donors giving less than two hundred dollars accounted for ninety four percent of the four point two million donations that were received. 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 John Tucker, John, Good morning, and.
Good Morning Karen. Two NYPD officers are recovering after they were shot while responding to a robbery on Manhattan's Lower east Side. Police say a suspect armed with a gun began robbing women and snatching their purses in a Magine parlor at ninety one Canal Street yesterday afternoon. Nearby officers heard the screams and responded as the suspect fled. Police identified him as twenty two year old Joshua Dorset. While the officers caught the suspect, the NYPD says he fired
one shot that struck both sergeants. New York Mayor Eric Adams.
The suspect who actually visited his probation officer this morning, is in custody at this time, and I want to be clear our NYPDU officers did not fire on the suspect.
One sergeant was hit in the upper thigh, the other was grazed on his leg. A sheriff is answering more questions after a deputy shot and killed a woman in her home last month, Sonya Massey called nine to one one about a possible intruder. Before the deputies arrived in Springfield, Illinois, Sheriff Jack Campbell was asked about now ex deputy Sean Grayson having worked for his several police agencies in a short time.
There was nothing in his background that would disqualify him from being a police officer in Illinois. In fact, he'd been hired by five other agencies and he'd been certified by the Save Illinois six different times to be a police officer here, So it was nothing in his background and they would prevent him from being.
A police officer.
Sheriff Campbell sends. When the department failed Massie, he won't resign. Dozens of homes have been destroyed by wildfire in Larimer County, Colorado. This woman lives in the town of Drake and says she's gotten confirmation her home burned to the ground.
So I've lost what.
Is the best community in this the ninny world, and I'm very excit about That's that's very sad to me that we can no longer call that home.
She says. She evacuated Monday while her husband had already left town for work. The blaze one of almost one hundred large fires ranging across the West, and more than one hundred video game performers picketed in front of the Warner Brothers Studios in Los Angeles to protest against what they call an unwillingness from top gaming companies to protect actors against the unregulated use of artificial Intelligence, Global news twenty four hours a day, whenever you want it with
Bloomberg News. Now, I'm John, This is Bloomberg. Nathan and Karen.
John, thank you timed off the Bloomberg Sports Update. But John Stashauer, John.
Good morning, Good morning, Karen, Katie Ledecky and Simone Biles Olympic goats. They've got the hardware to prove it. The Decky part of the eight hundred freestyle realite team that won the silver medal, giving her thirteen career medals, most of any American female athlete files in competition that was closer than expected, still won the gold and the gymnastics all around her seventh career medal. Fourth Golds, who has won six World Championship Soony Lee, who won the gold
three years ago this time took the bronze. But the Olympics so often about unknown athletes, like the four rowers that won the first US gold medal in that event since nineteen sixty and the women's fencing team winning a first ever gold for the US. It's the third career gold for Lee Keefer Yankee tonight started a nine game homestand against the Blue Jays Yanks touch would be better on the roads, had a five to one road trip. Tonight is Jazz Chisholm. His first game of the Pinstripes.
He just had a pair of two home run games. He's also been playing a surprisingly solid third base. Here's Aaron Judge on his new teammate.
Yes, a guy to played a new position for the first time his career, and you know, some big, big games for us, and it looks like he's been playing there, you know, his whole life. So it's he brings a great energy. He runs a base as well. We kind of like having him right in the middle of the lineup and it's doing some damage getting on base. It's spin a big part.
Marcus Strouman on the Mount tonight. He has struggled lately. The Mets visit the Angels, who just got worried that they're so often injured. Star Mic Trap will miss the rest of the season with a knee injury. White Sox tonight bring their seventeen game losing streight to Minnesota. The Evan one since July tenthday earlier this season, lost thirteen in a row. First NFL preseason game in Canada, high the Bears beat the Texans twenty one to seventeen the
Hall of Fame game. It was stopped in the third quarter due to severe weather. First looked at the NFL's new rule on kickoffs. Seven all time greats will be inducted in the Hall tomorrow. Dashell Er Bloomberg Sports carry.
Nathan 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.
We are watching a global stock sell off this morning, led by big tech in this country after earnings disappointment from three tech giants. Joining us for some analysis as Matthew Bloxham, technology analysts for Bloomberg Intelligence Mad Good morning. Let's start with Intel. It is among the biggest laggards on the stock exchange this morning. Is Intel on the outside looking in when it comes to the AI race?
Yeah, I think you very much here. Oh, you know, perhaps other way. You know, it's definitely on the wrong side of the AI opportunity right now. And you know, kind of quite a bleak update they gave yesterday, you know, kind of weak margins in the quarter and a very muted outlook for revenue growth next quarter, you know, probably twelve and a half to thirteen and ANUR billion dollars versus the market expectation of fourteen. But I think it
goes beyond, you know, just the next quarter. What they're doing on downsizing the business and taking out more than fifteen percent of heads and cutting their gross capex by something like twenty percent or more. You know, it is a really clear signal that the forward market opportunity for
them is substantially smaller than they had been expecting. And that's you know, a reflection of I guess kind of getting a little bit caught out by maybe the pace at which the geneesh Fai opportunity has taken off, and obviously, you know all of that opportunity occurring primarily to in video.
You know, Intel used to be, you know, kind of really strong in the server market, and you know, all of those server investments, well most of them now really going towards AI powered technology, which is not a not a market that they're kind of really strong in.
Well, it's turned to Amazon, where they've been focused on cost cuts for quite a few months now, Andy Jasse, the CEO, saying that he's gonna put profits on the back burner to really ramp up AI spending. How much catch up does Amazon have to play with some of the other players in the AI space.
Yeah, I don't think they're playing catch up. They're just kind of matching all of the other big heavyweights, you dollar for dollar. You know, the market leader in cloud service has been investing for some time in AI. And you know, we've had a very familiar story from all of the big tech rivel So, you know, I think Microsoft, think Meta, Think Alphabet, Google, They're all investing huge billions of dollars to build their AI technology platforms for the
mid to long term. You know, the revenue is coming through, but it's not coming through that quickly. But they all know that if they don't develop their technology platforms today, they'll miss out on a big show of the market in the midterm. And that's essentially what they're doing.
I mean, while Apple is kind of bucking the overall sell off trend trading a little changed right now. They've delayed the rollout of their AI features, But is that going to be enough to spur this upgrade cycle that so many have been talking about.
Well, yeah, I mean, you know, the the the AI features Apple Intelligence will start to come through in iPhone sixteen and so I think you know that that is really the next big focus for investors with Apple. If we looked at the quarter they just reported, iPhone stalls were still down slightly about one percent, but o there's a big improvement on the previous quarter. And obviously what they need to do, given that's you know, give or take fifty percent of their revenues, is get iPhone sales
growing again. And you know, the product's refresh cycle and I guess a smartphone upgrade supercycle is what they need. And you know, the big hope is that intelligence or artificial intelligence features on the device and their slightly differentiated, unique way of offering AI is going to be enough to kind of get more customers to to upgrade.
This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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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