Bloomberg Daybreak: February 4, 2022 - Hour 1 (Radio)

President Biden visits New York City on gun violence, plus playtiffs, have suit Governor Kathy Oakell over New York States Green District and plan I'm Michael barn Or a had John's dashower and sports St John's with a win at Georgetown and a strong denial for the Giants and the Brian

Flores lawsuit. That's all straight ahead on Bloomberg day Break on Bloomberg Gilimen TREEO New York, Bloomberg one, Washington, d C, Bloomberg one O six one, Boston, Bloomberg nine sixty, San Francisco, Sirius x M one nineteen and around the world on Bloomberg Radio dot com and via the Bloomberg Business Act. Well, Good Friday, morning. I'm Nathan Hagar and I'm Karen Moscow and US Dock Index futures are climbing in the wake

of Amazon earnings. Were coming up to final one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg Guess and the futures up twenty nine points down, futures up seventy three, NASDACK futures up one ninety two. The decks in Germany's down eight tenths of upper cent. The ten year treasury up three thirty seconds. He had one point eight two percent, and they yield on the two year one point to one percent. Comas gold is up half percent or eight

dollars thirty cents at eighteen twelve forty. Unnounced the euro one point one four six six against the dollar. Nathan Well, Karen, what a difference of day makes right? Facebook sent the nastac plummeting yesterday, but this morning it is a reversal, with futures getting a huge boost thanks to Amazon's earnings after the bell. Shares of the e commerce giant are up nearly thirteen percent. The rally comes after Amazon posted blockbuster profit and raised prices for its US Prime membership.

Ed Ludlow has the details from our Bloomberg nine sixty newsroom in San Francisco. The annual price of Prime will rise by twenty dollars to a hundred and thirty nine dollars, the first increase since two thousand eighteen. Executives touted the slate of life sports content to come a new series like Lord of the Rings. Beyond benefits like shipping discounts, Amazon was also able to negate higher input costs and

labor challenges in the quarter, with monster profits. Some of that tight to gains on its investment in ev maker Ribbean, the cloud and advertising unit, which was broken out for the first time, also performed well in San Francisco. Ed Ludlow Bloomberg daybreak. All right, and thank you. But we're also seeing a major bounce back and two stocks that took up pounding yesterday. Snap, which lost almost a quarter of its value, is searching more than forty eight percent

this morning. Pinterest is up sixteen percent in early trading. And again more from Bloombery stug create snaps fourth quarter of sales increased to one point three billion dollars daily active users of the company's Snapchat mobile app top forecast. Separately, the earnings from pinterest were above estimates, quarterly revenue jump compared to last year, and these games sparked a turnaround in social media stocks in the extended session, following a

route triggered by the disappointing earnings from meta platforms. In New York, I'm Dick Prisoner, Bloomberg Daybreak, All right, Doug, thanks, speaking of that sell off tied to Meta turns out the one day crash now ranks as the worst in stock market history. Bloomberg's Charlie Pellett explains the Facebook parent plunged twenty six percent and erased about two hundred fifty two billion dollars in market value. That is the biggest wipe out in market value for any American company ever.

Michael Nathanson with Moffett Nathanson titled his note Facebook the Beginning of the End in New York. Charlie Pellet Bloomberg Daybreak, All right, Charlie, thank you about the plunge and Meta shares has one potential silver lining for CEO Mark Zuckerberg. And let's get the lightish lie from Bloomberg's rend A

young Good morning Nana, Good morning Karen. The big question is if Facebook users are flocking to TikTok, then should it be considered competition and if so, the more challenging landscape adds muscle to fight a pending government lawsuit against Meta. Since Meta's earnings miss yesterday, CEO Mark Zuckerberg has continued to cite competition from TikTok as a threat. That claim is at the heart of the FTC's antitrust lawsuit against Meta,

which says it's a monopoly with no true competition. Meantime, Bloomberg sources say Zuckerberg is telling staff to focus on growing Facebook and Instagram's short video product Reels, which is a copycat of TikTok. Live in New York. I'm gonna need a young Bloomberg day break, all right, we need to thank you yesterday's Facebook led sell off saw the NASDAC plunge three and three quarters percent yesterday. The volatility is not a surprise for Morgan Stanley, Chief US equ

strategist Mike Wilson. You know, we've had this narrative fire and ice, and we think it it's gonna be icier. Um, you know that doesn't mean recession as we negative payroll numbers for the next five months. But the idea that we're not gonna have some payback here from what was the spectacular, you know, kind of rebound during the pandemic, we think his naive. Morgan Stanley's Mike Wilson made the comments on Bloomberg Surveillance Catch the program on Bloomberg Radio

and Television at seven am Wall Street Time. Well, yesterday it was all about corporate earnings, Nathan, and today we focus on jobs. The government's monthly payrolls report is at eight thirty am Wall Street Time. Consensus calls for a gain of one or twenty five thousand jobs in January, but plenty of predictions call for a much lower number. Bloomberg's Michael McKee explains this may be one of the

most interesting and inconsequential jobs reports in many years. The omicron wave that's spread through the country in January likely caused many companies to pause hiring plans and many workers sick with COVID. Likely we're off payrolls during the month. Economists anticipate the weakest hiring in a year, and many think the economy may have lost jobs during the month. The unemployment and participation rates are forecast to be unchanged, but it's not likely to matter to markets or the Fed.

The Central Bank has made its next policy moves clear, and investors will discount bad news as temporary. Looking for a payrolls rebound this month. Michael McKey, Bloomberg Daybreak. All right, Mike, thanks, We now turned the politics overseas, the crisis and golfing UK Prime Minister Boris Johnson's government has gotten worse. Let's go live to London and get the latest from Bloomberg's Max Ramsey. Good morning, Max, Morning to you, Nathan and Karen.

Really a significant escalation of the challenges facing Boris Johnson with the resignation of four of his closest aids. We're talking about people in the Prime Minister's in a circle, including his chief of staff and communications directed. But most damaging has been the resignation of his policy chief. She really hit out of Boris Johnson because of her remark

he made attacking the Labor Party leader Kere Starmer. This all comes in the wake of what's being called in to party get these lockdown breaking gatherings in Downing Street, and it's only been getting more serious full Boris Johnson Live in London, Max Ramsey boom back daybreak all right, Max, thank you, and in the oil past today geo political tensions and a fast tightening global market has crewed on track for a seventh weekly gain straight ahead your local headlines.

This is Bloomberg all right here in thanks five oh seven on Wall Street. Rain fifty five degrees in central parks are gonna drop through the day, and already we got a bunch of accidents north Founder to eight seven between exits thirty six and thirty seven. Details coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. The Tri State area is in the

path of a winter storm Bloomberg. Needirelogious. Rob Carolin has the latest. Michael. We have a pretty wild contrast across the Tri State area. In the Hudson River Valley, temperatures have already fallen to around thirty two up around Stewart Field in Poughkeepsie. That cold air is going to be pushing southward into the city and that will change our precipitation over to some freezing rain for a before it

goes over to sleet later this morning. To be very careful as the morning goes on, because Rhodes will become icy, especially those elevated surfaces as that colder air pushes down from the north. Winner Weather Advisory and effect from eight this morning through seven pm this evening, Michael, Thanks Rob. New York Mayor Eric Adams talked about curbing the surge of gun violence in the city during President Joe Biden's

visit yesterday. It's enough, enough is enough, because we know we can do things about this, but for the resistance we're getting from some sectors of the government and the Congress and the state legislatures and the organizational structures out there. Mayor Adams talked about his new police unit to combat gun violence that replaces the controversy of old anti crime unit. We're not bringing back the anti crime unit of This

is not going to be a plain closed unit. This is an anti gun unit with the officers are going to have and modified police uniform and they're going to be an unmocked bigs. Mayor Adams spoke on ABC's Nightline. Fourteen plaintiffs are suing New York Governor Kathy Hockle and state Democratic lawmakers. The lawsuit in the New York Supreme Court claims that the state's new congressional and legislative maps are unconstitutional. HOCAL has signed off on new maps that

give Democrats a heavy political advantage over Republicans. Republican officials meeting in Utah have advanced the resolution that would formerly send your representatives Liz Cheney and Adam Kinzinger for their perceived disloyalty to former President Donald Trump, the GOP won't try to expel them from the party. New York City public school cafeterias are going vegan today as part of a new policy from Mayor Adams that starts this week.

Public school students and queens had mixed reviews. I'll be winning, but it's Adams is a vegan himself. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts and when a hundred twenty countries. Michael bar this is Bloomberg. Try anything once. Thank you. Michael's five ten on Wall Street Town with the Bloomberg Sports. I'll take good morning,

Jock Stead Showery alright, Good morning, Nathan. Two days after the Brian Flora's laws suit, the Giants responded with a strongly worded statement. They called Flora's allegations disturbing and simply false. They say they took Flora's candidacy to be their next coach serious and deny they had already made the decision to hire Brian day Ball before they interviewed Flora's worth, noting the now infamous Bill Belichick text meant for day Ball they went to Flora's took place even before day

Ball had his interview. The Giants reacted to that text, saying they have no affiliation with Belichick, he does not speak for them. Day Ball and the Giants name Mike Cafk their offensive coordinary has been the quarterbacks coach in Kansas City, Doug Peterson, who coached Philadelphia their only Super Bowl win and named the new coach of the Jacksonville Jaguars. St. John's.

With a ninety to seventy seven win at Georgetown, Julian Chempagny only seven points Patrick Ewing's Hoyas oh and nine in the Big East Top ten teams met out West Arizona beat d C L A seventy sixty six. NBA Warriors beat the King's their eighth win in a row. Clay Thompson's best games since his return twenty three points. Trey Young scored forty three Atlanta put an end to Phoenix's eleven game win streak. The Nets have lost six in a row. Plate tonight at Utah, James Harden named

the reserve for the upcoming NBA All Star Game. Kevin Durant not the only Injurednet. Joe Harris has been out for some time, and now there's word Harris may need a second ankle surgery. To All Star Games this weekend, both in Las Vegas, NHL tomorrow Pro Bowl on Sunday, Opening ceremonies this morning in Beijing. Sight of the two thousand and eight Summer Olympics and now the Winter Games.

John stash Eward, Bloomberg Sports, Nathan all Right, John thank USMP futures up twenty two points, Nowtout features up thirty one, Nestsect features leading the games on this Friday morning, up a hundred sixty eight points. On the heels of positive Amazon earnings. Talk about it next to Matthew Blocks him of Bloomberg Intelligence. This is Bloomberg Bloomberg eleven three oh weather winter Weather Advisory Today. This rain will change to

sleet and snow, temperatures falling through the day. By tomorrow mostly sunny, upper twenties will be in the low thirties by Sunday, currently rain and fifty five in Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quick Tape. He's a Bloomberg Business Flash and I'm Cameron Moscow, Usta, Indis future is rallying as earnings optimism returns to the

technology sector. Contracts and the tech heavy NASDAC up more than one per cent this morning as e commerce tighten. Amazon jumps about in early trading after posting a big beat on cloud computing profit and raising the price of prime and memberships. A hawkish chorus from central banks is weighing on stocks in Europe, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP futures are up twenty one points down futures up twenty

nine and NASDAG futures of one eight. The decks in Germany's down one percent. The ten year treasury of four thirty seconds, he had one point eight one percent. They yield on a two year one point to zero percent. NIMEX screwed oil is up one point six percent of a dollar forty seven and ninety one dollar seventy four cents of barrel. Comics called up half percent or nine dollars fifty cents. At eighteen thirteen sixty announced the euro

one point one four six nine against the dollar. British found one point three five eight and that's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, good morning, Good morning care In a major winter storm that already cut electric power to about three d fifty thousand homes and businesses from Texas to the Ohio Valley is aimed at Pennsylvania through New England. Ice and snow is expected to turn

roads into skating rings. The crisis in Gulfing Boris Johnson's government deepened as four top aids quit. Among those quitting as UK Prime Minister's chief of staff Dan Rosenfield made the fewer over the party Gate controversy. The US leeds after the official opening day of the team figure skating

event at the Beijing Winter Olympics. In the NBA, the Warriors won global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan Alright, Michael. Thanks, It's five nineteen on Wall Street Live from the Bloomberg

Interactive Broker Studios. This is Bloomberg Daybreak. At the end of I think it's quite clear to say has been a wild week for tech earnings capped off by Amazon. Right now, the shares are up nearly thirteen percent on a big earnings beat in the cloud actually saw it drop in online e commerce sales, but cloud business does seem to more than have made up for it. Let's get more now from Matt Blocks, some tech media and

telecom analyst at Bloomberg Intelligence. Matt, great to speak with you this morning, and it was really interesting to see the spike in the share price for Amazon after they announced that they were going to raise the price of prime memberships. What's your read on this earnings? Yeah, I think I think that's definitely the bit of news that's helped them out because their revenue growth outlook for the first quarter of two is actually a touch below where Alice.

We're looking at Alice, we're looking for about nine pc growth, and they gave a range of three to eight. So, you know, I think people have taken confidence from the fact that that price increase about twenty dollars a year or fifteen percent or so on the price UM. I mean, on my accounts, only had about maybe three billion or so of revenue, which had given the scale of Amazon, isn't very much, but it's high margin revenue and it will help to compensate for inflationary pressure on wages and

logistics costs, energy costs, um. So I think in terms of the profit outlook for the core on retail business, UM, that definitely helped. But you know, I think, as you mentioned, you know, the cloud business still growing very nicely, up forty year on year and with a very good margin, and the profits from that business outweighed the losses from

the retail business in Q four. Obviously they invested very heavily and their flag they're investing heavily in the in the retail business to make sure that people got their goods and that they had enough staff to to manage the warehouses. Is that where the core businesses now for Amazon? Is it the cloud? I mean, obviously the the online retail business is the is the most visible side for Amazon for the consumer. But is the cloud really where

it's at for Amazon? Um? Yeah? But do you know what, and I think maybe another reason why the shares are doing well today is that I guess you know that there are three places that's absolutely that the cloud is key to UM growth and profitability. But you know, online retail is always going to be UM, you know. And they've got a call business for them and linked to that, they have this new advertising led to the business, which for the first time they gave some more details on.

So in the fourth quarter that generated just shy of ten billion dollars of revenue, up thirty two per year on year. By comparison, Meta generated about thirty three billion dollars of sales, so it's about a third of the size UM of metas, so not an insignificant business at all, and it's going to continue to grow. And it's a different kind of advertising to the stuff that meta gets, which I think people will see as more sticky. It's um it's what a lot of people kind of call

kind of trade budgets. So it's more the stuff that if you know, if you're a marketing team and you're wanting to promote your product in a real bricks and mortar store, you would put under the line marketing dollars behind that. And that's the kind of business they're picking up as companies and brands look to advertise their wares across the Amazon footprints. So that's a really healthy business, be high margin for them, and adds a third leg.

It's a very diversified platform. Obviously, investors are buoyed a bit. I think by the lift in the price of Prime memberships. Is there a risk though, that it drives some prime members away to see the price go up by by that match. I think there's there's a risk. I think that they obviously asked us yesterday an analyst core. I think the company's viewers that they don't see customers churning away because of that. I think there's um um, you know,

some credence to that. I mean, they have spent a lot of money over the last couple of years, improving the quality of the prime offering, both in terms of accelerating deliveries in the US and internationally, and beefing up things like the music service and the video service. So

you get a lot of value for that membership. Um, it's only going to four a month dollars, you know, which when you compare it to things like Netflix, UM, actually pretty good value still, and they haven't put the price up for quite a few years, so I think, you know, it's such a central part of most people's lives now, I think they'll be at a UM limit. Any subscribe to losses may maybe even continue to grow

that prime base. All right, Thanks for this, Matt, as we continue to watch the share price of Amazon grow this morning, up more than twelve percent in the pre market. Matt Bloxham is a tech, media and telecom analyst from Bloomberg Intelligence five twenty four on Wall Street. Now, as we turn two jobs, getting ready for the January payrolls report to come out just a little more than three

hours time. Already, there have been quite a few warnings that this could be a tough payrolls print thanks to the omicron variant. Let's bring a Jennifer Lee, now senior economis at BEMO Capital Markets. Of course you probably saw this week Jennifer, the Labor Secretary, Marty Walsh, and President Biden warning that we could see a slump in jobs growth in the month of January thanks to oh Macron. Pretty wide range in terms of what economists are thinking,

we're going to see this morning. What's your view of what we're going to get? Straighting, let's get you have to date on the news you need to know at this shower. US futures are bouncing back in a big way after yesterday's sell off. It to do in large part to Amazon, which is surging at twelve percent following earnings. And Ed Ludlow has more from our Bloomberg nine sixty

newsroom in San Francisco. It was a strong holiday court of for Amazon, despite supply chain disruptions, labor shortages and rising input costs, and really beat on the bottom line. It was monster profit, but the author house moves were driven by a boost in price to Amazon Prime. It will rise by twenty dollars to a hundred and thirty nine dollars in the US, and all the cool executives are really at pains to point out that this isn't

just about discount on shipping. There's more value add like a pipeline of live sports content on new series like Lord of the Rings which should be coming this year and love Loo Boom Bang News San Francisco. Alright, ed, thanks. We're also seeing a bounce back in Snap and Pinterest shares following their earnings reports. Snap is surging fifty, Pinterest is up sixteen, well, Nathan, as all follows the worst one day crash and the history of the stock market.

Facebook parent Meta plunge percent yesterday, are raising two fifty one billion dollars in market value. There could be a silver lining for CEO Mark Zuckerberg, though, and we get the details live with Bloomberg's Rendy to Young. Good Morning, Rendy, Good morning Karen. The big question is if Facebook users are flocking to TikTok, should it be considered competition and if so, the more challenging landscape adds muscle to fight

a pending government lawsuit against Meta. Since Meta's earnings, miss, CEO Mark Zuckerberg has cited competition from TikTok as a threat. That claim is at the heart of the FTC's antitrust lawsuit against Meta, which says it's a monopoly with no true competition. Live in New York. I'm gonna need a young Bloomberg daybreak, all right, we need to thank you. Turning to the economy, now we do get the payrolls report for January this morning. Consensus calls for a gain

of a hundred twenty five thousand jobs. Bloomberg's. Then he tells Judaicce reports the prior report covering December registered the weakest showing since December twenty twenty. January state it could be even weaker. The White House has said so much in a rare announcement earlier in the week Bloomberg Economics, as the government collected data one omicron cases, we're peaking when confirmed infections were rising faster than the delta wave.

Then he dealt Bloomberg Daybreak, Sorry, Vinny, thank you, and turning to politics overseas, the crisis and golfing. UK Prime Minister Boris Johnson's government has gotten worse. Four top aides have resigned in the wake of the party Gates scandal and futures This morning, Nasdack futures jumping up one hundred points s ANDP futures higher up seven and a half, and DAL futures they've turned lower. They're down seventy three. Ten year Treasury up four thirty seconds, yield one point

eight one percent. They yield on the two year one point to zero percent. Nimex crude oil is up one and a half percent of a dollar thirty two and ninety one dollar fifty nine cents of barrel comic schooled up six ten percent or ten dollars forty cents at eighteen fourteen fifty announced and Bitcoin this morning moving higher at thirty seven thousand, eight hundred eighty dollars. Straight ahead, your latest local headlines, plus a check of sports, and

this is Bloomberg. N Thanks on Wall Street. Rain and fifty five degrees in Central Park and multiple accidents with this weather. Peter Vanill had the details for you a few minutes. First, Michael Barr with more on what's going on in New York and around the world. Michael, thank you very much. Nathan. President Biden met with New York City Mayor Eric Adams and Governor Kathy Hokel to talk about the recent wave of gun violence particula among law

enforcement officers. The President also announced new initiatives that the White House says would help fund community policing and crack down on gun crimes. I'll keep doing everything in my power to make sure the communities are safer, but Congress needs to do its part. Two. Pass universal background checks, van assault weapons and high capacity magazines, clothes loopholes that keep out of the hands of domestic abusers, weapons, repeal

a liability shield for gun manufacturers. Meanwhile, Mayor Adams talked about stopping the pipeline of illegal guns from gun dealers in southern States. We need to increase out funding to a t F so they can give us the sources of these guns that are coming into our city and cities. Mayor Adam spoke to ABC's Nightline. The winter storm stretching across the country is wreaking havoc on the roads. Parts of the Try and State area getting ready for winter

weather advisories. Hundreds of flying have already been canceled. The United States is warning of a plot in which Russia would say is justification for an invasion of Ukraine. Bloomberg's had Baxter reports the us A saying that it has intel that Russia's plotting to release a fake video purporting

a Ukrainian attack on Russia. Defense Department spokesman John Kirby, we do have information that it is that that that the Russians are likely to want to fabricate a pretext for an invasion, which again is right out of their playbook. And Kirby meanwhile says Russian troop movements into Belarus are very troubling. In San Francisco, I'm at Baxter, Bloomberg Gay Break.

Republican officials meeting in Utah have advanced the resolution that would formerly sense your representatives Liz Sheney and Adam Kinzinger for their perceived disloyalty to former President Donald Trump, but not trying to expel them from the party. Global News twenty four hours a day on airand on Bloomberg quick Take, powered by more than twenty seven hundred journalists and analysts and more than a hundred twenty trees. How Michael Bart,

this is Bloomberg. Okay, Michael, thanks Ball Street. Time for the Bloomberg sports up date. Here's John Stashown. All right, Nathan, it's been thirty seven years since St. John's and Georgetown play as the top two teams in the Country. Patrick Eween was then playing for the Hoyas he now coaches. Then they haven't won a big East game all year. Red Storm one MDC ninety seventy seven. Julian to Pacy scored twenty seven points. They're having a big year on

Staten Island. Wagner is fifteen and two. Last night nearly blew a twenty one point halftime lead, but beat Central Connecticut by two. The Seahawks twelve, winning the row. Next play tonight in Utah. They'll try to end this six game losing streak. Then nixt begin of five game road chip tomorrow night at the Lakers, who last night lost by one to the Clippers. Lakers without Lebron James right now,

when they have dropped nine of their last thirteen. Phoenix Suns went to Atlanta forty one and nine, winners of eleven row. The Hawks beat the Sunstrey Young scored forty three points. Doug Peterson, the former Philadelphia coach, named the new coach of the Jacksonville Jaguars, sixth higher of the offseason. All six are white. Although Byron Leftwich was a finalist for the Jags job, and he took himself out of consideration, reportedly did not want to work with the Jags GM

Trent Faulky. Still, only one African American NFL coach, Brian Flores, is said to be a finalist to get the jobs in either Houston or New Orleans. Even though Flora's just suthed the NFL and three teams, including the Giants, for racism and they're hiring practices. The Giant released a strongly worded statement defending the way they handled their recent coaching search. They say Flora's was a strongly considered candidate right up to the point where they desired to hire Briant Table.

Dave All has hired Mike Cathgo to be his offensive pointer he had been with Kansas City. John stash Award Bloomberg Sports Nathan. Thanks John, It's thirty seven on Wall Street Time for the Tri State Business Report. Here's Bloomberg z Cory. Beginning May fifteenth, all job postings in New York City must list a minimum and maximum salary. The rule applies to jobs that are remote or in person, salaried or hourly, that will be performed in the city by an employee working for a company with four or

more employees. Eastern Generation provides more than eighteen percent of New York cities electricity. It's facing a more pressing debt burden and reduced profit after the pandemic cut demand for power management. Says capacity prices in the New York region will likely remain depressed in twenty two. Municipal bond investors may have made artificial distinctions among New York State borrowers

and overallocated portfolios to bonds from New York issuers. The Vulcar Alliance says New York uses state public authorities to circumvent constitutional debt limits and backs billions in debt issued for city schools, the MTA, and university dorms. At your Bloomberg Try State Business Report, I'm ed Corey that it's on Wall Street. Bloomberg Radio is on the air from

San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve Polas, got on Chen Chen Wins in New York. We're talking about a price high for that Amazon Prime membership. M corney's Donaho on ktr H in Houston. A record fifty percent of small

businesses raised wages in January. Find Caroline hit called Bloomberg dav Digital Radio in London, wom reporting on the crisis in Gulfing Forest Johnson deeply as several top aides quits. I made Corey on w w J in Detroit. I'm reporting Ford inst Atlantis will idle some plants because of the semiconductor shortage. Those are some of the stories our twenty seven hundred Bloomberg journalists and analysts working on this morning around the world. It's nine on Wall Street. The

following is an editorial from Bloomberg Opinion. For the first time in a long while, there's good news about COVID nineteen. Case numbers and hospitalizations are declining across most of the US. A respite from COVID nineteen could well follow a return to normal. That modest but elusive goal should be possible once daily COVID hospitalizations fall two levels associated with a bad flu season. To be clear, the US isn't near that yet. Hospitals remain overburdened and thousands are still dying

of COVID each day. But with better data collection and a nationwide effort to prevent another crisis. The country can reach a point of stability and stay there. Careful monitoring of hospital capacity, new variants, and maxine efficacy will be key. While the pandemic is still very much with us. With luck, the omicron wave will be over by spring. That calls for some cautious optimism. This editorial was written by the

Bloomberg Opinion Editorial Board. I'm David Chipley. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or OPA and go on the Bloomberg terminal. This has been Bloomberg Opinion. You get her Bloomberg opinion editorials every weekday. At this time. Terminal customers can read more at OPI n GO sp

futures are up ten points down. Futures have turned lower down They're down forty eight NASTAC future is still higher, but trimming some of their gains, up a hundred eighteen points in the tenure Treasury is up three thirty seconds. The yield one point eight one up. Next, we'll talk Amazon earnings with Tuna Amobi over at c f r A. This is Bloomberg Bloomberg eleven three oh weather. The rain will change to sleet and snow of the winter weather Advisory.

Today temperature is falling. Tomorrow we'll get into the upper twenties and sunshine, sunny, low thirties for Sunday. Right now, rain and fifty five degrees in Central Park. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business and at Bloomberg Quick Tape. He's a Bloomberg Business flash, but I'm camering Moscow and now. Stack futures are arrising this morning, led by Amazon, which is leading in pre market gains as earnings optimism returns

to the technology sector. We checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now NAZDAG futures or of one hundred fifteen points up eight ten percent, uh SMP futures of nine and down futures down at fifty eight. The decks in Germany's down one point one percent. The ten year treasury of four thirty seconds. He had one point eight one percent yield on the two year

one point to zero percent. Nine X screwed oil of one point to one point four percent, up a dollar twenty eight and ninety one dollars fifty five cents a barrel. Comegs gold up half percent or nine dollars seventy cents at eighteen thirteen ninety announced the euro one point one four six eight against the dollar, British pound one point three five five three, and the ends at one fourteen point nine three bitcoin this morning, moving higher at thirty

seven thousand, nine hundred dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Muchael Karen, thank you very much. Russian President Latimer Boutin has arrived in Beijing for the opening of the Beijing Olympic Games. You'll also hold talks with

Chinese counterparts Hi jing Ping. Meanwhile, the US leads. After the official opening day of the team figure skating event at the Games, President Biden paid a visit to New York City and met with Mayor Eric Adams about gun violence. Biden outlined his administration and what it wants to do to end the flow of illegal weapons. A snow and ice storm is crippling air travel from Texas to the East Coast. Thousands of flights have been canceled. More are

expected today in the NBA. The Warriors won global news twenty four hours a day on air and on Bloomberg Quick Take Power by more than twenty seven hundred journalists and analysts and more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg, Nathan. All right, Michael, thanks for coming up to five forty nine on Wall Street Life from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak.

As we continue to watch shares of Amazon surge in the pre market of twelve and a quarter percent following the latest earnings, capping off what has been a very interesting earnings week when it comes to the ex sector. Tuna Amobi is back with us this morning to talk Amazon, tech, media and telecom analysts at c f R A Tuna, good morning. So a lot of gains for the cloud business, obviously a slump a little bit in terms of online

e commerce sales. What's your read on these earnings? Good morning, Nathan, It's great to be with you again. Um. You know, look, I think going into those earnings, expectations were quite subdued, right, Um, we knew that the company was going to face significant inflationary and supply chain pressures for the holiday season, and they did. But I think what we saw in the earnings is that they quite masterfully navigated those uh and UM and that's why you see UM, you know, the

results a lot of positive takeaways. Online sales you mentioned was quite weak, and I think the reason for that was the very difficult comparisons that they talked about that they had in the in the prior year with the tail winds from the pandemic, and invested quite heavily uh in labor, in stuff in and all those things. So that's why you see that those results were pressured. But on the cloud computing business, Amazon web Services, I think

those results were much better than expected. I think we've seen some concerns against competition from the likes of Google and Microsoft in cloud, but Amazon Web Services pretty much held its own forty percent year of a year revenue growth, now well on its way to becoming a hundred billion dollar run rate business. Now. They also had some other bright sports advertising thirty two percent growth. That's one of

the fastest growing businesses. So all in all, I think going into the Q one that they've just guided I think we feel quite good that they are holding up against significant headwinds. Let's talk a little bit more about those headwinds though. When you talk about inflationary pressures, I mean you can kind of say we're seeing evidence of that just in the fact that they're raising the price

of Prime memberships. I mean, could that be a headwind? Well, you know that written the price of of prime was actually our take was that that was an indication of price and power. Um you know, anytime you take a price increase of in this case, h you you always wonder what impact is going to have on subscriber acquisition and retention. But they've done this least on two previous occasions, and over that period, Prime membership continue to grow pretty fast.

We have no concerns this time will be different, you know. That being said, I think there there's a lot of other, um, you know, tail winds that we see across across the Amazon Web services, which will write you know, which should still remain the golden goose for many years to come. In terms of the advertising business, there's a lot of competition there. We saw the results obviously from Facebook parent met Up platforms, the big drop. There a lot of

that driven by ad sales as well. Are there differences between the way Amazon does ads, uh, compared to how Meta and some of its other competitors do it. Well. You know, it's been a rurer coaster of advertising reports from the big tech um. You know, I think to your question, I think that the differences a little bit nuanced in terms of the size of the brands. UM. I think what the pandemic has done is that the big brands have been actually leading the the spending coming

out of the pandemic. So that's why you see some of those variations in terms of the target you know, customer segments. Without being said, um, Amazon the advertising business is relatively smaller than much smaller as if as in fact to Google and Matter, so the group we see there is over a much smaller base. But overall trends in the digital advertising except for Meta, I think I've been all positive from the tech companies that we have seen so far. So that's one area I think we

continue to have very high expectations for Amazon. Only about a minute left here. Do you think Amazon holds onto its market share in the cloud? I do, but they are you know, by FI the dominant player. What we see is that competition have intensified. So you may see Google and UH and Microsoft are continue to chip away. But it's a huge addressable market, is a very huge runway. I would argue we're still in the relatively early innings

of that market globally. Alright, as always, thanks to your insights, Tuna, good having on with us this morning after those Amazon earnings, Tuna movie tech, Media and Telecom analyst at CFR a with us this morning and once again looking at Amazon shares in the pre market following those earnings here and they are up twelve. Sorry, Nathan, thank you. It is

five or fifty four on Wall Street. Time for our Bloomberg the law report brought to you buy American Arbitration Association, and business disputes are inevitable resolved faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More at a dr dot org. Now let's get to the legal stories we're watching this morning.

From Bloomberg's Jeff Bellinger, The Minnesota Wild of the National Hockey League settled the proposed Americans with Disabilities Act class action. Plaintiffs charged that the team's website fails to accommodate visually impaired people. A federal judge ruled the Food and Drug Administration must face a workplace harassment lawsuit filed by a black analyst who claims managers used racial stereotypes when referring

to him. Georgia federal court records showed that Starbucks and a former store manager who accused the coffee company of age discrimination have settled the proposed class action. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg Market Intelligence. Find out more at Bloomberg Law dot com. M All right, Jeff, thank you.

And now another legal story we're watching. Some circuit court opinions are getting attention lately enough because of their content, but because of their tone. Legal writing coach Ron Scooperman joins Bloomberg Studing Grosso to discuss this new sarcastic trend. One judge, Ninth Circuit Judge Lawrence van Dyke, has taken opinion language to another level. Russ explained what Judge Van

Dyke wrote in a Second Amendment case recently. Yeah, so he did something I can't remember seeing before, he wrote, a concurrence, which is of course pretty customary, and then he wrote a concurrence to his own concurrence. But what was really unusual is was, so this is, as he said, a Second Amendment case. So it's a high profile case. So he was sort of assuming that the case was going to go on bonk, and his concurrence to himself basically tried to write what he thinks the majority will

come up with. So he wrote an opinion, you know, going the opposite way from what he wanted. But then what he did his he had all these footnotes and thought bubbles with a very kind of snarky, sarcastic tone, essentially claiming that, you know, anybody who supports this particular California gun regulation was just completely making things up and had all terior motives. Do you know, get those goals accomplished in the guise of an ordinary looking at Kinyon.

So that's what I think he was trying to get across, sort of the trispecta, you know, write this almost like to put them on the defensive before they've even had a chance to rehear the case, sort of show that you can have a lot of what he would probably say kind of gobbled the standards and quotations from case law, and then you know, takes a very strong suggestion that they were you know, slimy for lack of a better word, and we're going to sort of make up the law

in order to uphold the gun regulation and as legal writing coach, Ross Gooberman's begin with Bloomberg's Juan Grosso. Catch more of that interview, plus analysis of the latest legal news by subscribing to the Bloomberg Law podcast or downloading

the show at Bloomberg dot com slash podcasts. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b law Go and again nowsday futures higher this morning, up one six points or seven tenths of a per cent s and P futures are up five points, so they've been giving up some of their games this morning, while down futures have turned lower. Down seventies six ten year

treasury up five thirty seconds. You had one point eight one percent and the yield on the two year one point to one percent, the euro one point one four six five against the dollar, and still ahead on Bloomberg day Break. We have a check on the business headlines and all the news you need to start your day. And this is Bloomberg