Bloomberg Daybreak: October 26, 2022 - Hour 2 (Radio)

He was a big debate night in New York and several other states, plus President Biden discussed Ukraine and China in a congratulatory call to the ne UK Prime Minister Michael Barr. More ahead, I'm kind stattoward sports. The Rangers lofted that shoot out to Colorado Devils one in Detroit.

The Nixon nets ap games tonight. That's all trendy head on Bloomberg day Break on Bloomberg He live in Freeo, New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nine team and around the world Old on Bloomberg Radio dot Com and via The Bloomberg Business and

good Morning, I'm Karin Moscow. I'm Nathan Haygar. Bloomberg day Break brought to you by b n y Melon's Pershing learned why the world's most sophisticated wealth management and institutional firms rely on Pershing to help them improve profitability, create efficiency, attract talent, and manage risk at Pershing, dot Com and futures are following this morning six oh one on Wall Street. We checked the markets every fifteen minutes throughout the trading

day on Bloomberg. Right now, S and P futures are down thirty three points, now futures down eighty three and NASDACK futures falling down two hundred or one point seven percent. Ten year Treasury up ten thirties seconds, yield four point six percent. Yield on the two year four point four or four percent, Nathan Karen. The big drop at Nasdaq futures this morning follows disappointing earnings and forecasts from two tech giants, who begin with Microsoft. The shares are down

six percent. Ed Ludlow has more on the results from our Bloomberg nine sixty newsroom in San Francisco. Microsoft it beat on both the top and bottom line, but recorded its slowest sales growth in five years. The stronger dollars certainly was a factor, along with a material slowdown, it

seems in both corporate and consumer spending. What really spooke the market was commentary on the Earning School that the Asia Cloud unit would see its growth decelerate to the tune of five percentage points quarter on quarter going into the final three months of this year. The most significant reaction in after ours trading coming at that point at Lovelow for Bloomberg News in San Francisco, alreat thanks Well. Shares of Alphabet meantime or down about six point four

percent in early training. The owner of Google, reported earnings and revenue that both missed analysts expectations. Bloomberg Intelligence Senior analyst man Deep Singh has more on the miss. The reason why you see a ten percentage point miss when it comes to operating income is because search underperformed. Every

time search underperformance, Google has a bad quarter. And in this case you have to ask for yourself, is it temporary, is it what Snap was seeing around pricing, or is it more structural because you know there's a lot more competition from Amazon, from Walmart, from Target. These companies are all add numb groups now. Bloomberg Intelligence senior analyst Mundeep Singh says Google is now planning to slow hiring and control expenses, and had plenty of other earnings to catch

you up on Karen. Shares of Texas Instruments are down down almost five percent. The chip makers quarterly forecast missed estimates. Shares a Visa are up about one percent. The digital payments company reported profit and revenue that beat, and Chipotle shares a little changed. Comparable sales and profit outpaced expectations. Well tech earnings continue today, Nathan, with both Metal Platforms and Twitter reporting meantime, Elon Musk's acquisition of Twitter is

in focus. He's pledging to close the deal by this Friday, and we get more from Bloomberg's Doug Christner. The comments were made yesterday in the video conference call with bankers helping to fund the deal. They are providing thirteen billion dollars of debt financing, we are told Musk also promised to help the banks market the debt to money managers

after the deal closes. Several banks have been left in alurch after Musk's sudden reversal on going through with buying Twitter in early October and now they're facing paper losses of roughly five hundred million dollars on the transaction. The pain would be realized once the debt is sold to institutional investors. In New York, I'm Doug Christener Bloomberg Daybreak, Thanks Doug wild Such stocks are falling this morning, the overall stock market may still not have hit bottom. That's

according to Goldman Sachs. Strategists at the firm say equities don't fully reflect the latest dries and really yields and the odds of a recession in a severe economic downturn. Goldman's team says it expects the SMP five hundred to drop below That would be a twenty five percent fall

from yesterday's close. Well, in Europe this morning, Nathan, banks are in focus once again as earning season rolls on, and we go to London and get the very latest with Bloomberg's un pot skod morning, un good morning, count and Nathan. A big morning for European bankcountings and beating estimates as interest rates Royce is the key theme. Italy's UNI credit has raised fully. Revenue and profit Tall gets

full a second straight quarter. Deutsche bank sales and profits also beating, but analysts did flag higher than expected costs at Germany's biggest lender, and traders at London based Barclay's beating estimates are setting steep declines at the investment bank, with the economy keeping deals on the sidelines in London, I'm you in pots in Big Daybreak? Are you in thanks? Back here in the US, the focus is on politics. With less than two weeks before the midterm elections, the

candidates for New York governors squared off last night. Bloomberg's Michael Barr joins US Live from New York with the highlights Michael Nathan. Crime and abortion took center stage last night as New York Governor Kathy Hokle faced a Republican challenger, Representatively Zelden in the campaign's only televised gubernatorial debate on Spectrum News New York One. Both candidates were asked to look ahead to the raise for the White House in do you want to see Joe Biden run for re election? Yes?

I do. Do you want to see Donald Trump run for president? In Lee's Eldon not even thinking about it. I'm focused on the four team days from today, Hocal slam Zelden's past support for abortion restrictions. Zelden criticized Hocal's push to send millions of abortion providers to expand access for a predicted surge and out of state patients live in New York. Michael Barr Bloomberg Daybreak, Karen, all right, Michael, thank you about candidates for Pennsylvania governor also debated last night,

and more on that coming up shortly. Inflation, meanwhile, is proving key in the midterm elections, including soaring housing costs. Renters are feeling the pinch in the country's biggest cities. New York City has the most expensive market in the country, according to rental listing company Zumper. The media and one bedroom apartment in New York runs more than thirty eight hundred dollars a month. Boston has this second highest rent it close to thirty one hundred dollars. In San Francisco's

close behind it roughly three thousand. Well, Karen, you've heard about the great resignation after COVID. Now the next wave of workers leaving their jobs could be driven by abortion rights. According to a survey by the nonprofit Catalyst to employees are thinking of quitting because of their company's response to the Supreme Court decision to overturn Roe v. Wade. Forty percent say their employer isn't doing enough to protect abortion rightst think their company CEO should be more vocal on

the issue. Straight ahead, your latest local headlines in the check of sports. This is Bloomberg and it's now six oh seven on Wall Street where at sixty four degrees in Central Park gotta crash on the way to JFK westbound belt park Way Age Springfield Boulevard. Michael bars back with the aforementioned details on the Pennsylvania governor's race and more on what's going on around the world. Michael, thank

you very much, Nathan. And on top of New York, it was debate night and several other closely launched races. As you mentioned, Pennsylvania Democrat John Federman debated against the Republican Dr. Memonaz as they've I who are critical Senate seat. In the opening minutes of last night's debate, Federman addressed what he called the elephant in the room, the stroke he suffered five months ago. I have run the campaign and I've been very transparent about being very open about

the fact, we're in US captioning, and I believe that. Again, my doctor is the real doctors that I believe, and they all believe that I'm ready to be served. As ignored his opponent's health challenges instead seizing on Fetterman support for President Joe Biden. On immigration and crossings at the southern U. S. Border, doctor said it's an issue that's personal to him. My father was an immigrant, my mother

were immigrants. You know, I understand what legal immigration offers us, but the completely porous open nature of our border, which John Fetterman supports, has created a humanitarian crisis. The debate was held on News Nation. Meanwhile, the gubernatorial debate was held last night. In Michigan. Governor Gretchen Whitmer declared her position on abortion, saying she'll be voting yes on a

ballot initiative to protect abortion rights. The simple truth is the way to protect women and ensure that future generations have the same rights we've had for forty nine years is by adopting Proposal three, and I will be a yes. Whitmer's Republican opponent, Tutor Dixon, argue that Michigan's Proposal three is nothing like the Roe v. Wade, Supreme Court decision that stood for nearly fifty years. When Governor Whitmer tells you that this is going to be Row, it's not

even close to Row. It's not codifying Row in our constitution. But it would be the most radical abortion law in the entire country. The only place that has something similar or China and North Korea. The debate was aired on w x Y and z TV. New York City has been ordered to reinstate a group of sanitation workers fired for refusing to get a COVID nineteen vaccine after a

state court judge ruled at the mandate was unlawful. The White House, as President Joe Biden, congratulated the new UK Prime Minister Rishi Sunac in a call in which they discussed the Russian invasion of Ukraine and challenges arising from China. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than one hundred twenty countries. Michael

Barr and this is Bloomberg. Nathan, Thanks Michael, almost six cent on Wall Street time for the Bloomberg Sports Something for our TV. I try stayed out here. Here's John stash Our Nathan good one at the Garden Stanley Cup champion Colorado in to start a three game tour of the New York teams nineties shots on goal in this game Adam Fox score was six minutes left to tie the score. In the shoot at the Ads scored in the fourth round. They beat the Rangers three to to.

The Colorado goalie was Alexander gorgiad beat his old team. The Ads visit the Devil's Friday. Devil's just won six two at Detroit. They've won four to last five, and then they Ads visit the Islanders on Saturday. The Rangers visit the Islanders tonight. Next are at the Garden Tonight place Charlotte. The next visit Milwaukee, who the best in the West met last night. Phoenix blew out Golden State by twenty nine. The Jets say Eli Jahmore will play

Sunday against New England. Second year receiver upset with Black of playing time demanded a trade. Didn't play last Sunday the trade deadline Next Tuesday. Chatter five and two. Giants are six and one. Daniel Jones comes off a one hundred yard rushing game for coach Brian Daball. The dual threat quarterbacks as they say nowadays, um, you know, add another element to your offense because it's eleven and eleven football. When those guys can can carry the football or zone

read it or do some different things. Um, so he has you know, he has ability to do those things. And Sunday is at Seattle. Seahawks also surprised either in sole possession of first in the NFC West. There quarterback now by Gino Smith, the ex Jet and Giant forty three old Skip Schumacher named new manage with Miami Marlins, replacing Don Madden Lee. He had the job for seven years. Schumacher most recently a coach in St. Louis. Louis Robos, the ex Met manager, current Yake third base coach, was

a commendidate for the Marlins manager John Bloom. Big sports, all right, John, Thanks. Futures moving lower, SMP futures down thirty one points down, futures down seventy But the big dot drop is in the tech heavy Nasdaq futures down two or three points or one and three quarters per cent on disappointing earnings from Microsoft Alphabet and Texas Instruments. Dan Ives of web Bush Securities joins us. Next. This is Bloomberg. Bloomberg Sports is brought to you by Audie.

Don't let someone else drive off in the autie model you've always wanted. Visit your local price state autie dealer to get behind the wheel of yours today, or visit Audie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day, at Bloomberg dot Com, the Bloomberg Business app, and at Bloomberg Quick Tape. This is a Bloomberg Business Flash and I'm Karen moscown. This update brought to you by se I imagine your asset

management firms operational infrastructure as a competitive advantage. Let see I show you how a sci dot com slash I m s us Talk index futures falling this morning as

Megacap technology share slump in early trading. NASDACK futures down one point seven per cent after disappointing quarterly up days from Microsoft, Google parent, Alphabet and Texas Instruments, and looking at those shares this morning, Microsoft down five point nine percent, Alphabet is down six point two percent, and Texas instruments is down about five percent right now again. SMP futures are also lower, down thirty points now futures down fifty

seven and NASDAG features down one ninety five. The decks in Germany's up half percent. The ten year treasury up seven thirty seconds yield four point oh seven percent, and they yield them a two year four point four or four percent. NIMEX screwed oil is up four tens percent or thirty five cents at eighty five dollar sixty six cents a barrel. Comes Gold up nine ten percent or fourteen dollars seventy cents at sixteen seventy two seventy an ounce.

The euro one point zero zero one five against the dollar, British found one point one five five four, and the n one forty seven point three one. Bitcoin is up two percent at twenty thousand, five hundred ninety dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, thank you

very much. Daren Pennsylvania Democrat John Fetterman debating against Republican doctor mement Oz as they vie for a critical Senate seat sentiment who suffered a stroke and may spoke about abortion. If you believe that the choice of your reproductive freedom belongs with Dr Oz, then you have a choice. But if you believe that the choice for abortion belongs between you and your doctor, that's what I fight for. Ah said that he is against federal involvement in a woman's decision,

but he supports what the states decide. I want women, doctors, local political leaders, letting the democracy that's always allowed our nation to thrive, to put the best ideas forward, so states can decide for themselves. Meanwhile, gubernatorial debates were held in New York and Michigan. In the NBA, the Wizards won, the Warriors lost. In the NHL, the Rangers lost the

Devil's One along with the Bruins. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan. Thanks Michael. We're coming up to six twenty on Wall Street Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak on a morning where tech shares are leading the broader

market lower on a disappointing start to earning season. Microsoft and Google parent Alphabet are leading the way joining us now, Dan ives seen your equity research channelist at Wedbush Securities has been pretty bullish on the tech sector for quite some time. Dan, it's good to speak with you this morning, and I'm just getting through your note on Microsoft earning, saying that the quarter was roughly in line with a headline beat, respectable performance from the Azure cloud service, but

the guidance was nothing to write home about. Give us a little more on your thoughts on Microsoft's earnings. Yeah, I think it's really about Godens. I mean, I think there's been worried the last few quarters that you're gonna see cracks in the armor and enterprise spending and the clock start midnight last night. I think the gate softer goidance is going to wear on the market as well as with what we saw from Alphabet, and you know, I think's really what's the start of this economic slowdown

impact in Microsoft? And yet you're still keeping an outperform on Microsoft stock going forward, keeping your price target. Why. Yeah, So I view this as really a rough patch that they're ultimately just ripped a band aid off. They reset expectations. I think if you look at cloud, that continues to be the core growth driver that's just going to get them through the storm. And I just view this more this was a time where PC continues to be an

overhang from Microsoft. They'll get through this with Cloud. I viewed as probably an overreaction terms of what the stock is today. How do you see Microsoft getting through this storm? There's a lot of debate about how long this storm could last. Do you think it lasts long? And how does Microsoft get through it? Well, I think they're going to be able to get through it, probably better than any other tech company because today less than enterprise are

on cloud, so it was more hip to cloud. That's going to be an accelerant from Microsoft. More that business is going to be cloud and services. But right now in PC, it's going through what I'd say is probably a forty year type of decline in terms of PC market. That's a dark cloud and the stock ultimately gets rerated more in cloud. That's why you own Microsoft as a

Rocket Gibraltar stock through the store. Does it get more difficult to maintain demand in the cloud when we have these kinds of headwinds from a strong dollar and from the fact that the way the economy is going right now, there might be a little bit less demand for cloud services because of just the way things cost right now. Look FX, that's about a five hundred bit headwinds from Microsoft, and you'll see the same thing from Apple air this weekend.

Another big text ords strong dollars, huge headwinds. Now, I think on the other side of that that will start to actually be easier compared is going into next year. But look, enterprises, they cannot not go to the cloud, and that's why in terms of from an I T perspective, they are top top of the priority with I think they ripped a band aid off. I think now they

reach that expectations, stock will get hit. But I do this more of a bottoming process from Microsoft right in the start of just a multi quarter type of guy ince production. So you think Microsoft is better position than an Amazon Web Services or a Google cloud product that has a lot of market share compared to Microsoft, Yeah, I think all those companies and you saw it with Google in terms of cloud being strong. Of course a

WUS they continue to eat the markets. Those are all going to beat benefits and rising todd is gonna lift all boats in terms of cloud. I think in terms of the stocks is that Microsoft is a pure play cloud. Amazon it's still that e commerce that that's still the majority, and of Google Google Google clouds to a smaller piece. That's why what I like about Microsoft, it's plane that pure play cloud, you know, as opposed some of the

consumer areas which obviously digital advertisingly in their media pressure. Okay, so just about thirty seconds left here. How does this set us up for the rest of earning season? We've got meta reporting later on this afternoon book. I think met or could be a mini disaster, you know, just giving what we're seeing on digital advertising as well as the business transition that stock would get hid into it.

I'm not expecting really good news there. I think you'll start to see positives when it comes to Apple Amazon on the WUS piece book at This is a it's a defining time for tech and that's the key right now in terms of what we saw as always Dan, great to get your thoughts, Dan Ives, senior equity research analysts at wed Bush Securities. Right now, alphabet shares down six percent, Microsoft down more than six percent NAZAC futures as a whole down two points, a drop of one

point seven percent. This is Bloomberg Bloomberg eleven three oh weather cloudy today, scattered showers, possible hides in the upper sixties, Sunshine, upper sixties. Tomorrow It's gonna be mostly sunny with a high only near sixty on Friday. Sixty four is the

current temperature. Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living free to Washington, d C, Bloomberg nine nine one to Boston, Bloomberg one six one to San Francisco, Bloomberg Home sixty to the Country, Sirius XM to the one nineteen and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's six thirty on Wall Street of morning

of Nathan Hagar and I'm teren Moscow. We are just about three hours away from the open of US trading. Time for the five things you need to notice start your day. Brought to you by Interacted Brokers. Interacted broker's clients are an interest of up to two point five eight percent on the idle cash and their brokerage accounts. Visit i dk R dot com slash interest rates to learn more. Up First US futures are lower this morning

after earning sir Microsoft and Alphabet despite beating projections. Shares of Microsoft are down six point three percent in early trading after the strong dollars slowed revenue growth. Shares of Alphabet are down more than six percent after sales miss analyst estimates. Bloomberg Intelligence senior analyst man Deep Sing says Alphabet and Google are facing a fundamental problem. Search is the main business and that is what drives margins. The

question is is searched saturated? Probably yes, because there's a lot of direct traffic going to these mobile apps, you know, the companies that I talked about. On the retail side, you don't need Search. You start off your search on Walmart or Target or Amazon. And Bloomberg Intelligence analyst Mandeep Sing says Google is now planning to slow hiring and control expenses. Watching shares of Texas Instruments care and they're down nearly five percent. The ship maker's forecast missed estimates,

signaling a broader slowdown in the semiconductor industry. So far head of Investment Strategy, Liz Young says, the outlook for tech stocks may now be uncertain. We're sitting at a point in the year where we've done a lot of work and valuations have seen a decent amount of pain since January, and I think it's less about what's the right valuation for these stocks to be at, and it's more about what are people actually willing to pay for them.

Knowing that we have not solved all the problems that still lie ahead so far, as Liz Young says, she sees broader market volatility continuing for several weeks well. Nathan techernings continue today with Meta Platforms and Twitter reporting. At the same time, Elon Muski is working to wrap up his acquisition of Twitter, telling bankers he's going to close the deal this week. Bloomberg's Ed Ludlow has the details the banks that kind of brace for this borrowing notice

that should have come Tuesday. Then the money that the banks have pledged in the form of debt would go into es growth. Thursday is told these anchors that he fully intends to close the deal Friday, and Bloomberg's and Ludlow says, Twitter shares approached a must four dollars twenties center share acquisition price. Following the news and Karen renters across the US are still feeling the pinch. New York City has the most expensive rental market in the US,

according to the rental listing company Zumper. Boston jumped to the second highest rent surpassing San Francisco, which is now third. And that's the five things that you need to notice start your day. Brought to you by Interactive Brokers and straight Ahead your latest local headlines, plus a check of sports. And this is Bloomberg. Thanks Karen. Six thirty three on

Wall Street, sixty four degrees in Central Park. Now, we got two accidents on the belt park Way that Peter Van is gonna tell you about in a few minutes. But first, Michael Bars here with more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan Sparring over crime and abortion. It took center stage yesterday as New York Governor Kathy Hocle faced a Republican challenger, You West Representative Lee Zelden in the

campaign's only televised gubernatorial debate. Local blasted Zeldin's past support for abortion restrictions, and the governor pointed to Zelden's position on gun laws. When you had the chance as a member of Congress to stand with other Republicans who finally said enough is enough, you were nowhere to be found. Lee. I mean that's people need to know. You can't talk about because all you have his rhetoric Zelden valid to

repeal liberal criminal justice reforms. There are criminals out there who need to pay the consequences for their action instead of the catual lease policies. The debate was aired on Spectrum New York. One. The candidates for US Senate in Pennsylvania squared off in a debate. Democrat John Fetterman, still recovering from a stroke in May, was asked if he

would support a Biden run for the White House. It's up to his choice whether he you know, and if he does choose to run, I would absolutely support him. Dr Oz, I want to bring civility, balance, all the things that you want to secrets. You've been telling it to me on the campaign trail, and by doing that we can bring us together in a way that has not been done of late. The debate was held on News nation. Meanwhile, in Michigan, the two candidates debated in

their gubernatorial race. President Joe Biden talked about Russia and Ukraine and China in a call congratulating the new UK Prime Minister Rishi Sunac. The conversation. Conversation also touched on the unresolved issue of the Irish border after Brexit. Another setback for w n B A star Brittney Grinder in Russia's judicial system, Bloomberg said Baxter. As the story, Russian court has refused to hear an appeal of Grinder's sentence. What House spokesman Korean Jean Pierre says, the US will

double down now. I'm getting her free. This is this is a priority, and we need Russia. We are asking and telling Russia to negotiate in good faith. But at this point, her nine year drug sentence remains in place in San Francisco. I'm at Baxter. Bloomberg day Break Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than undred journalist and analysts more than a hundred twenty countries. Michael Barren, this

is Bloomberg, Nathan. Thanks Michael. Six thirty five on Wall Street. Time for the Bloomberg Sports Day, brought to you by Try State. Out of here again is John stat Shower? All right, Nathan? The World Series starts Friday. For the Yankees, the off season's underway. A couple of reports concerning the Yanks s n Y reporting a long time general manager Bryan Cashman will get a new contract as current one is expiring. Cashman has been the GM since began with

the Yankees as an intern. Six that's for Aaron Judges future MLB dot Com with the story that the Dodgers are expected to pursue Judge as a free agent, that their plan would be to then move Mookie Betts to second base, where he played in high school. He did play their briefly this season. Skip Schumacher was a Cardinals coach made the new manager of the Miami Martins. That the Guard and the Rangers faced an old friend, Alexander Gorgiev, was the Rangers backup goalie the last five seasons. He's

now with Colorado. He and Igor Sterkin both made some big says. The game went to a shootout, Colorado won three to two. The Ranger coach Gerard Glen they played really fast and like I said, we no surprise. We talked about that before the game. And the guys, you know, they know this Stanley Cup champion to a quick at fast team, and they'll build like that. And I thought I part us into the battle more than the second

or third. Two official Rangers visit the Islanders Tonight The Devil's Last Night won six two at Detroit and next tonight host Charlotte. The Nets visit in Milwaukee, Jets and Patriots Sunday at MetLife. Jets won four in a row. Red hot Patriots just got blown out at home by Chicago.

And yet Pats are right now and with a slight favor And that's despite a lot of controversy in New England over Bill Belichick's decision in that Monday Night lost a bench quarterback Mac Jones, he got over the playoffs last year as a rookie. They put in rookie Bailey Zappy. He struggled, and Belichick then said it was his plan all along to use both of them. Pats white out. Chakobe Myers calls the team to QB situation ugly don't

all John thanks sixty seven on Wall Street. Time to take a look at stock some of the names moving in the pre market. Bloomberg Radio and TV Markets correspondent Crety guptas with us and speaking of ugly creaty gonna talk about tech earnings. I'm so glad that you're calling me ugly for a second, so I never would goodness some red on the screen certainly for some of these

tech earnings. Alphabet at the top of the pile here g O O G is going to be your taker, or if you want to look at the Class C shares g O O g L regardless, both are down about six percent in the pre market. This, of course follows some pretty bad earnings. Remember we like to look at Alphabet as kind of the poster child not just for social media companies, but for advertising as a whole. And you actually saw YouTube have an AD revenue shrink for the first time since they were reporting YouTube ad

revenue separately. So that's really where you're seeing a lot of pain this idea here. The advertising really is kind of facing a little bit of crunch time as more and more people say, well, our consumers really going to be spending when they're kind of looking down at a recession. So that's going to be the concern there. You can really see Corporate America feel the pain. Their cloud numbers also not helping them much either, So G O O

G down six percent. A similar story, Nathan, when you look at Microsoft this morning as well, M s f t S your ticker down six point three percent this morning. This comes a lot from their Asia business, specifically the cloud business that's really been driving a lot of the growth for Microsoft. But they they're warning about slowing PC demand, slowing business investment demand. No one really wants to make those big investments into cloud technology right now and really

hitting their bottom line. Not to mention them the FX headwinds. This idea that the dollar has just been on an absolute tear, and most of Microsoft's business comes from abroad as opposed to right here in the US, so converting those profits back to dollars that indeed is painful as well. Yeah, we're seeing the chip pain spread the Texas Instruments as well. Cre We absolutely are Texas Instruments. T x N is going to be your tacker there, down about just shy

five percent in the pre market. This is a chip maker. Their fourth quarter outlook signaling that semiconductor slump is continuing to spread. Essentially, they're missing their earnings. And remember this is a company that makes chips for everything from washing machines to cars, to mobile phones, et cetera. And you can really see that that kind of sentiment that you saw in their fourth quarter spreading to the likes of end Video for as well. And video is that major heavyweight.

N v D as your ticker down about two in the pre market. And finally, Creedy, I see you're watching Twitter looking to see whether the deal goes through. The Twitter saga continues. We'll find out on Friday. Elon must saying that before he's looking to close that deal. To your point, by Friday, about about six tenths of one percent is the boost you're seeing in Twitter shares. This follows, by the way, the boost we saw off yesterday as well. One of the big questions though for Twitter is going

to be the regulatory story. Will the Biden administration actually let this deal happen. That's gonna be the big question, all right. Bloomberg Radio on TV Markets corresponding, Creedy, Goop looking great as always, Thanks for being here looking at stocks as a whole this morning. Not looking great. SMP futures down twenty six point. Staff futures down thirty six.

Nasdack futures leading the declines, now down five points for a drop of one point six Tenure Treasury up eight thirty seconds, yield four point zero six percent on the benchmark ten year. This is Bloomberg and the Bloomberg Sports Report was brought to you by Audie. Don't let someone

else drive off in the Audi model. You've always wanted to visit your local Tri state autie dealer to get behind the wheel of yours today, or visit Audie Offers dot com for more information, 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 Karin Moscow and Nasdack futures are dropping following big tech earnings, and we get to the first word breaking news desk now for today's morning call with Bill Maloney. Bill, Good morning, Hey, good morning, Karen. That's right. US features are on the red after the

Google and Microsoft earnings. Down. Futures currently down ten points, subs dropped twenty three will the Nasdaq futures are off by a hundred and seventies six. The US ten year at four point oh six percent, gold is of fifteen, Oil is trading in the green, and bitcoin is hired by two point two percent. Hong Kong rose one percent overnight, while Europan markets are trading mixed this morning and back

in the US. On the economic front, day thirty wholesale inventories at at ten o'clock, New home sales after the bells after the bell. Last night, Microsoft posted its slowest growth in five years. Google Q three revenue missed estimates, and Texas Instruments Q for revenue forecast also missed estimates

regarding some of the earnings. This morning, look for a bone to report in the pre market, and wrapping things up, Discover Financial was raised to overweight at Morgan Stanley, Baker Hughes cut the equate at Wells Fargo, and Regeneral was cut to underperform over at Rain and James Live from

the First Break Intershed. That's gone bo Maloney, Karen, all right, Bill, thank you, and to hear live breaking news over your Bloomberg type squawk on your terminal SCU you a w K and of course we're watching shares of Microsoft down six point two percent, Alphabet is down five point nine percent. Right now, Texas Instruments down four point nine percent in early trading. And that's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world.

Michael Karen, thank you very much. The candidates for the Pennsylvania Senate race squared off into debate last night. Republican Dr Memonaz says that he would not support a federal abortion ban, which some others in the GOP have called for. There should not be involved in from the federal government and how states decide their abortion decisions. As a physician, I've been in the room when there's some difficult conversations happening.

I don't want the federal government involved with that at all. Democratic Lieutenant Governor John Federman addressed what he called the elephant in the room. I had a stroke. He's never let me forget that, and I might miss the words during this debate, two words together, but it knocked me down and I'm gonna keep coming back up. The debate was aired on News Nation in New York. Democratic Governor Kathy Hokel squared off against Republican Representative Lee Zelden in

the gubernatorial race. Hoco blasted Zelden's position on gun laws. It is a joke to talk about a crime policy that doesn't include doing something about illegal guns. Meanwhile, Zelden vowed to repeal liberal criminal justice reforms. Kathy Hocle is too busy patting herself on the back. Job well done. The debate was on Spectrum New York. One. In the NBA, the Wizards won, the Warriors lost. In the NHL, the

Rangers lost, the Devil's and Bruins One. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven under journalist and analysts

and more than twenty countries. Michael Barr, this is Bloomberg, Nathan A him Michael, Thanks for ly from the Bloomberg Interactive Broker Studios or at six fifty on Wall Street Time Now to check what's going on in d C. Some of the top stories Internation's capital include Fetterman's debate performance giving dr Oz potential traction in the Pennsylvania Senate race, President Biden warning Russia against a false flag nuke attack in Ukraine, and the President saying diplomacy over Britney Griner

has gotten a cold reception in Russia. Also making news the Biden fourteen, the races that could be key to Democrats long shot bid to keep the House next month. For more on some of these stories were bloom joined by Bloomberg Government reporter Emily Wilkins. Emily, good morning. Let's get to the debate. First off, last night in Pennsylvania, Democrat John Federman tried to keep expectations low ahead of the performance. What did you make of what we saw

last night? So it was a really rough performance for the Democratic nominee John Federman last night. I mean, obviously, as you pointed out in that club, he did have a stroke a couple months ago. His uh, how he has talked has been impaired. Of course, Federman says that it's it's a verbal thing, not a cognitivet thing. But still the attacks from Dr Oz on Federal Rman and how he's been able to present himself after the stroke, Uh, they've been really allowing oz to gain traction in the race.

And last night Federate Funnerman just had stumbled several stumbles, several major stumbles. Um that really could potentially hurt his polling and hurt his chances of winning Pennsylvania. So I think that was one of the really big takeaways from

last night. Of course, the other thing um that Futterman's campaign has really touted is the fact that Oz actually said that whether or not a woman gets an abortion or what kind of health care she has does involve to a certain extent local elected leaders um, which is an argument that Democrats have been trying to make to

show the extremeness of the Republican position on abortion. Of course, we're gonna be keeping a very close eye for the next polls to come out of this race, but really Dr Os and the Republicans have been very much closing the gap in recent weeks, and and last night might have potentially sealed the deal for them. What's the potential that this debate could have much sway in the Pennsylvania Senate race, given that more than half a million Pennsylvania

voters have already cast early ballads. And that's an excellent point, Nathan. To a certain extent, it does matter that voters have voted early, that they've already got some of their billets. And at the same point, we know that a lot of voters are going to be voting from now until November eighth, and then on November eighth itself half a million voters. It's a lot, for sure. But after debate performance like this, you could see some folks have their

minds changed about which candidate they want. All right, let's turn to what's happening at the White House. President Biden is being asked again about the threat of a nuclear dirty bomb attack in Ukraine, and it comes as Russia's signaling that it's going to begin regular nuclear drills. Yes, lots of things going on in Russia right now. There are reports of this potential dirty bomb, potential biological weapons bomb that could be released at some point in Ukraine,

and there are concerns about it. You're seeing President Biden renew his warning to Putin that it would be an incredibly serious mistake to use any sort of nuclear weapon weapon in Ukraine. And this really reflects this urgent concern that you're seeing in Washington and among some of its other allies that Russia might be searching for a reason

to unleash such a weapon. I think they're these concerns about nuclear weapons have been present for a while but the fact that you're seeing President Biden address them again, Uh, it really kind of shows the heightened concern in Washington as well as elsewhere. In the time we have left, Emily, I want to get to this reporting from your colleagues at Bloomberg Government on what they're terming the Biden fourteen races important to Democrats long shot grasp of the House.

So there are fourteen districts in particular that political watchers should be focusing on here, Well, there are lots of different different districts, but I think my colleague David Hood was right to focus on these particular fourteen. They're really unique districts because there are ones that Biden would have won in but they were redistricted to that so Biden didn't actually win them. It's just the lines changed and made them more favorable to Democrats. And this is really

gonna show these political headwinds. Doesn't matter that Biden one in particular district or Democrats losing ground with voters of these districts are very competitive. Um, there's a sense that some of them are going to wind up flipping to Republicans.

According to to several experts who are to quote talked about in the story, Um, And basically what these are just showing is that there is this gap between where Democrats were in and where they are now, in the fact that just politically wise, things have gotten much tougher

for them. They've lost a lot of support, and there have been a lot of questions about sort of where the party goes next from year, and so in our last thirty seconds here, I guess this adds on to the headwinds politically for Democrats and what's usually a difficult time anyway for a party in power to hold on to Congress and the balance of power on Capitol Hill.

It certainly is, Nathan. I mean, the fact that we've seen inflation remain high, the fact that gas prices are going back up, um, the fact that there's really only much so much of Democrats can do to try to tell voters about the bills that they've passed. I mean, for a while it like Dems were getting a bounce after the Rovwade decision was released, after they passed a lot of legislation. But at this point a lot of polling is showing Republicans gaining ground before the mid terms.

Thanks so much, Bloomberg government reporter Emily Wilkins. Read much more on Bloomberg dot Com or on the Bloomberg Terminal. Listen to Bloomberg and one oh five point seven FM HD two to hear Bloomberg Radio in Washington. Karen, all right, Nathan, it is six six on Wall Street. We turned to news and science and technology now with the Bloomberg and

j I T STEM report. It has run to UVINE, New Jersey Institute of Technology, ranked to top one hundred national university by u S News and World Report and number fourteen in the nation on Money's Best Colleges list. Learn more at n j I T dot E d U and here's what's making news in science, Technology, engineering and math. New COVID boosters are not any better than the old ones, according to an early independent study on

a small group of people. Researchers at Columbia University and the University of Michigan say by valent booster shots from Maderna and Fiser failed to raise levels of protective proteins called neutralizing antibodies against the dominant omicron strains any more than four doses of the original COVID vaccine. Scientists may have discovered a method for making magnets used in wind turbines at electric cars without the rare earth metals that

are almost exclusively produced in China. A team from the University at Cambridge and colleagues from Austria found a new way to make tetra chinite, a possible replacement for rare earth magnets. If the manufacturing process is proven to be commercially feasible, it could loosen China's dominance are the rare earth market, where it accounts for over of global supply. And a new study found that playing video games is

linked to better cognitive skills. It says that kids who played three hours or more of video games a day perform better on tests of memory and impulse control than those who did not play games. The National Institute on Drug Abuse says the studies results are worthy of further investigation. And that's the Bloomberg and j I t Stem report. But we continue to watch shares of Microsoft and Alphabet

this morning. Alphabet now down about six percent in early trading, Microsoft down more than six percent, And we'll have more much more on that straight ahead on Bloomberg Surveillance for Nathan Hager, I'm Karen Moscow, and this is Bloomberg