Bloomberg Daybreak: October 28, 2022 - Hour 1 (Radio)

f d n Y Commissioner. West, We're learning more about the hijack passenger bus and queens. I'm Michael Barber. More ahead, I'm John Stage showIn sports. Then that's lost in overtime, the Ravens beat the Bucks. The Phillies and Astros begin the World series tonight in Houston. That's all training ahead on Bloomberg Daybreak on Bloomberg Eliving Free on New York, Bloomberg one, Washington, d C, Bloomberg one O six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nineteen

and around the world on Bloomberg Radio Dot Car. I'm the Bloomberg Business app. Then good Friday morning. I'm Nathan Hagar and I'm Karen Moscow and US dock indext futures are lower this morning. We are coming up to five oh went on Wall Street and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg SMP Future is down about thirty points this morning. Down Future is down ninety one and nastday futures down one thirty one.

We're down one point two percent. Tenure Treasury down twelve thirty seconds. Healed three point and nine six percent. I mean yield in the two year four point three four percent. Nathan, Well, Karen. We begin this morning with an earnings related sell off that is on track to wipe off more than six hundred billion dollars in market value this week alone, and that's just from America's five largest tech companies. The latest

culprit is Amazon. Those shares are down thirteen and two thirds percent in early trading following earnings that fell short ed. Ludlow has details from our Bloomberg nine sixty newsroom in San Francisco. There was this a verer after ours reaction to Amazon's forecast for the fourth quarter. The revenue will be between a hundred and forty and a hundred forty eight billion dollars, significantly below what the street is looking for.

And that's a feme oft this earning season. Right, investors punishing companies, not just those missing on the top and bottom line, but those giving tepid forecasts. There was a long list of problems to Amazon. Really, currency continues to be a head win to the tune of nine hundred million dollars in the course had gone and it will continue to impact Amazon going into the final three months of this year. Ed Lovelow for Bloomberg News in San Francisco.

All right, thanks well. Apple has managed to avoid the tech route. Shares are up one percent in early trading. Those sales of iPhones and services were softer than expected. Apple's revenue and profit both topped estimates. Still, Apple CFO lookam street warrants of a holiday slowdown. Overall, we believe to company year will be year. Revenue performance will decelerate during the December quarter as compared to the September quarter

for a number of reasons. First, we expect nearly ten percentage points of negative year over year impact from fort and Exchange and Apples CFO Luka my story says sales of Mac computers will decline substantially. Stay tuned for analysis on both Apple and Amazon coming up shortly when we speak live with the Loup Adventures A co founder Gene Munster. In the meantime, Karen, we have some more earnings to

get you caught up on. Shares of Intel or up about five percent in early trading, the chipmaker's pledging to slash costs to combat a persistent slump and computer demand that's dragging down sales and profit. Shares of Gill Lead Sciences are up three and a half percent. The company boosted its earnings guidance for the full year, and shares of Pinterest are hired by eight and a half percent. The social media company reported earnings and revenue that beat estimates.

Well Up Next Nathan, the focus turns to big oil. Both ex On Mobile and Chevron report this morning. We get a preview from Bloomberg's Jeff Bellinger. Overall, the third quarter was likely a good one for the oil giants thanks to oil prices that remained elevated through most of the last three months. Bloomberg Intelligence says the company's fourth

quarter outlooks will be key. It raised the possibility of weaker cash flow for Exxon Mobile due to falling crude and gas prices, and said there is the potential for slower profit growth at Chevron. X On Mobile put out a pre earnings release to let investors know that its chemicals and refining businesses were down compared to the second quarter. Jeff Bellinger, Bloomberg Daybreak and jeoff O wait for those earnings. President Biden's demanding oil companies cut prices. That's after Shell

reported its second highest earnings ever. The President says gasoline prices should reflect what energy companies pay for oil. Last quarter. The five largest oil companies made in the last quarter seventy billion dollars in profit in ninety days. With the comments from President Biden too a sharp response from oil industry leaders. They say refiners don't set the price at the pump and that Washington should leverage US energy production well.

Nathan and then their major story We're following the this Morning closes the book on a six month takeover saga. Elon Musk has completed as forty four billion dollar acquisition of Twitter, and Bloomberg News has learned he plans to assume the role of CEO today, there will surely be more changes on the way. We get details from Bloomberg Intelligence analyst Matthew Bloxom. There's been a lot of speculation about how much Elon Musk is going to change Twitter.

You know, the room is about some tribe and job cuts, the reinstatement of people like Donald Trump to the platform, a complete change in the business model. Maybe like twelve months, you could see him introduce some kind of subscription t here to the business. All sorts of things could change. I think it's gonna be an interesting few days and months, and I'm sure we're gonna hear quite a bit from

him today about his plans. Bloomberg Intelligence analyst Matthew Bloxom says Musk is expected to remain CEO in the interim, but may eventually see the role in the long term. Let's turn to the U. S economy now, Karen, we're wrapping up the week with a few notable data points covering inflation, sentiment, and spending. We get more from Bloomberg's viny Dell Judas the government issues data in September Household income and spending today in Wall Street, will keep an

eye on inflation figures tied to the report. Bloomberg Economics has any surprise could influence the course of Federal Reserve interest rate hikes maintime Bloomberg Economics as today's University of Michigan consumer sentiment index for late October will remain low by historic standards, highlighting recession risks. Also on tap today the Employment cost Index and pending home sales Fini Del Judai s Bloomberg Daybreak Fenny Thanks. In Asia overnight, it

was all about the yen. The currency has rebounded this week, but is reversing that trend. This morning. We can into one forty seven point four seven against the dollar. That's after the Bank of Japan stood pat and its ultra low interest rate policy. Bloomberg Daybreak Asia anchor Brian Curtis has a story. This is the b o J pushing back against speculation it might change its tomb no go. The board left the negative rate, the tenure yield cap,

and the asset purchases unchanged. This was in line with all forty nine economists surveyed. The b o J did raise the inflation forecast to two point nine percent for the year ending in March. It predicted price growth will slow to one point six percent in the next twelve months. The b o J is walking a tight rope here as the Devish Dance puts downward pressure on the end

while the government is spending billions supporting it. Brian Curtis, Bloomberg Day Break, Right, Brian, thank you, Local News straight ahead. This is Bloomberg Exparen. It's five oh seven on Wall Street work forty seven degrees in Central Park construction on the north bound New Jersey Turnpike Eastern Spur. We'll get to the details and traffic shortly. First, Michael Bars here with more on what's going on in New York and

around the world. Good morning, Michael, Good morning Nathan. We're learning more about a nightmarriage commute for public transit bus riders in New York City. Police and mt A bus was hijacked in Queen yesterday. The bus driver is hailed as a hero for not moving the bus until passengers could get off the vehicle after the suspect arm with what turned out to be a bb gun confronted the

veteran driver. The forty four year old man Wayne Ganty was taken into custody after the bus crashed into a utility poll NYPD Deputy Chief Jerry O'Sullivan, I definitely want to command the driver for his actions. He did not move the bus until everyone was off that bus. I believe the driver was calm and did a great job. Deputy Chief O'Sullivan says the bus driver jumped out of

the driver's side window to eventually escape. New York City Mayor Eric Adams appointed Acting Fire Commissioner Laura Kavanaugh to leave the Department on a permanent basis, making her the first female commissioner in the one d fifty seven year history of the Fire Department of New York. While we put in place in national search, looking over several names and interviewing several candidates, kept coming back to Laura over and over again, over and over again. I just kept

coming back to her leadership. After getting sworn in, Kavanaugh says her journey to this moment was unexpected. New York City story is fundamentally and of making the impossible possible. Kavanaugh, who is forty, has served as acting commissioners since the retirement of Commissioner Daniel nine Ro in February. Election sites across the country have been encountering threats and intimidation since

early voting began in some states. Out of concerns for the safety of poll workers and voters, the NYPD has announced that they will be keeping a closer eye on polling places. With the mid term elections just less than two weeks away, the NYPD is warning that racially motivated an anti government extremist good target poll workers, political rallies, politicians,

and voting sites. Police say there are currently no specific threats in the city, North Koree of fire too short range ballistic missiles today as it continues a barrage of launches in opposition to US and South Korean military drills. 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 twenty countries. Michael Barr, This

is Bloomberg, Nathan, Thank you, Michael. Almost five ten on Wall Street time for the Bloomberg Sports Up Tape, brought to you by try State Autie. Good morning, John Stanshire, Good morning night. And after a turbulent off season where a star player demanded a trade unless the coach and general manager fired, maybe not a surprise the Nets are off to a slow start, lost at Barkley's to Dallas

one nine, one five and overtime. Luken Down took forty one points in a a triple double for the Mad Kevin Durand, who was sending that trade demand, scored thirties seven points. Kyrie even had thirty nine, But the Nets are too much a two man team. The duo took fifty two shots and the rest of the team only forty one, and the Nets are one and four next to three and one place tonight in Milwaukee. The Tampa Bay Bucks are three and five after starting two and oh lost

in home to Baltimore twenty seven. Twenty two. Ravens out rushed Tampa Bay two hundred and thirty one to forty four. Tom Brady on what went wrong sting red areastrom there down game at two point as m h s back up start the first quarter, start of the third quarter offense football the only positive for Tampa right now in the NFC South, No one's over five hundreds. The Bucks can win the division, but hard to see them making

a Super Bowl run the way they're playing now. Giants are six and one without any production from last year's first round. Graphic whiteout can Darius Tony, who hurt one hamstring and then the other, and the Giants just traded Tony to Kansas City for a third and six mound draft picks. The World Series begins tonight in Houston. Astros won a hundred and six games in the regular season. The Phillies won seven. That's the largest disparity since the

third World Series ever in nineteen o six. John Stashward Blue boots all right, John, Thanks Nastak. Futures down one in the third percent down a hundred forty eight points, dragged down by Amazon down thirteen point six percent. Apple shares a little bit higher. Will wrap up tech earnings this week with g Monster of lip Ventures. Next, This is Bloomberg. Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off in the autie model

you've always wanted. Visit your local tri state autie dealer to get behind the wheel of yours today, or visit autie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quick Take. This is a Bloomberg business lash. And I'm Karen Moscow and US DOT index futures are falling this morning, led by the NASDACK with nousdack futures down one hundred fifty points, down

one and a third percent. S and P futures down thirty two, Dow futures down a hundred, ten year Treasury down eighteen thirty seconds here three point nine nine percent. They yield on the two year four point three seven percent. And I've ex screwed oil down one a half percent at a dollar thirty at eighty seven dollars seventy eight cents of barrel. That's a Bloomberg business flash. Now here's Michael Barr with Moore on what's going on around the world. Michael,

good morning, Good morning, Karen Job. Democrats say they are still a confident they'll maintain control of Congress after mid terms less than two weeks away, with poles showing Republicans gaining ground. Democrats attorney to former President Obama. He's campaigning today in Atlanta for Senator Raphael Warnock, who's locked in a tight race against former football star Herschel Walker. There's

the night football the Ravens beat the Buccaneers twenty two. Tonight, Game one of the World Series between the Phillies and Astros NBA. The Nets lost Warriors one. In the NHL, the Bruins won the Capital's Lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven journalist and analysts more than a hundred twenty countries. Michael Barr And this is Bloomberg Nathan Banks. Michael, We're coming up to five nineteen on

Wall Street Live from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak. At the end of a bruising week for tech earnings, and Amazon on is the latest stock to get punished right now, down thirteen and a half percent on a week forecast for the holiday quarter. But if there's one somewhat bright spot, it maybe Apple. Those shares are little change to the upside at the moment. Let's get some more insights now. Gene Monster is with

us live, the co founder of Loop Ventures. It is great to speak with Eugene, and I've gotten a look at your note on Apple. You're right that investors are buying both performance and potential. Tell us a little bit more about what you mean, Well, the investors in this environment want both, and what we've seen is that the companies that have offered the biggest potential. You think about Meta is the perfect example of that related to the

metaverse have been hit the hardest. Google to a lesser extent, but still this idea of investors waiting for something to emerge is usually very important for tech investors, but in this earning period it's less important. And I think one of the beauties of Apple is that their current performance has been solid and they still have this optionality around

new markets that they can get into. They can potentially have a step function up in their growth rate, which is hard to imagine given how big they are that the law of numbers can still work in their favor. But I think that that is the is the balance that this company is working. And just to put it into perspective, Nathan, one final point is that Apple is the only big tech company to guide essentially in line

with the street. They don't give formal guidance, but you can back into it, and I think that that speaks to the strength of performance. And if you're curious the reason why, what was iPhone it's just over half of their business. It was up ten percent year ever, a year that was in the face of a forty seven percent comp and so the number actually would have been

even stronger if not for supply constraints. They're still supply constrained on the most popular pro models by three to four weeks, and typically at this point in the cycle, or six weeks into the new iPhone cycle, you would see lead times of one to two weeks. And so I think that, um, you know, they are continuing to do well. They got the performance, and they got the potential around automotive and a R and and something in health.

Talking about supply constraints, we were seeing a lot of constraints apparently coming out of Amazon's results, projecting a much weaker than expected holiday quarter. And I assume that that that includes the earlier Prime Day promotions that we just saw, right, most of those promotes, those promotions fell into the September quarter, and so it's it's less about the Prime Day impact.

But I want to put some perspective, And they did guide lower than where the street was at for the December quarter, that's true, But I just I think there's this Um, I think it's an overreaction. I just want to make the case that it is an overreaction. Is that the street was previously looking for twelve percent revenue growth for December. If you take the midpoint of their guys, it would have been four percent. So that is a

slowing girl, There's no doubt about it. Uh. They usually hit the high end over the past twenty years almost nine percent of the time they come in at the high end. That would be like six percent. So they guided down. That is true. The consumer is weak, that is true. Uh, the advertisers are weak. All of this is having a negative impact on Amazon's business. But the piece that surprises me is that I think it is uh, just this reaction down is more commentary about that we're

talking about earlier with Apple. Is that investors just demand performance today, and whether it's a small cap or a megatech cap, they wanted today. And I suspect that investors will quickly move on and and and get more comfortable that Amazon's business isn't a good place longer term. Well, we've got John Gene. I've got to get your thoughts on Twitter now that Elon Musk apparently is at least an interim CEO. Is Twitter investable under an Elon Musk

as the leader? Yes, anything with Elon On right now, he still has the golden touch, so it is investible. He's gonna kind of go away for two or three years and and take the rails off of it and run this like a private company that that that it will be, and we'll see what what he pops out.

And I was encouraged to hear his commentary yesterday that he does not want this to become a free for all because obviously he's gonna take some of the governor's off of what you can say, And I think that's that's important ultimately when you when you put this all together, Twitter is still a side project for Elon. His his true passions are Tesla and SpaceX, and I think that, uh, we're thinking a lot about it now. Probably a year or two from now, we'rell be thinking a lot more

about SpaceX and Tesla. Just about thirty seconds left, Gene, we've seen obviously tech shares broadly get punished this week. Would you buy back into tech at these levels? I think so forth if you have a perspective of I think that more than two year perspective. I mean, we own some of these, We own Meta, we own Amazon. They've had a tough week, but we we're not selling them. And ultimately I think that uh, you know, they have assets that are hard to replicate the world's population visits

a Facebook property on a daily basis. Amazon has logistics that no other e commerce company can touch. And I think you probably have to assume that all that we're in economically is going to fade or we'll go away. Eventually, we'll stabilize and these companies are going to write right size their growth rates back to what we're accustomed to. Thanks as always, Geen, great to get your thoughts on tech. Geene Monster, the co founder of Loop Ventures with us

this morning. Looking again at shares of Amazon right now, they are down thirteen and a half percent in the pre market. Apple shares are higher by seven tenths percent. Take a look at Tesla as well, now that CEO Elon Musk is also CEO of Twitter. Tesla shares at the moment are down about one percent. STP futures down twenty seven points, staff futures down sixty four nast deck features leading to declines down a hundred thirty eight points.

This is Bloomberg Bloomberg eleven three oh weather. Partly sunny today but cool. Highs in the upper fifties, sunshine tomorrow, high near sixty, will be in the low sixties under

a mix of sun and clouds on Sunday. Right now forty seven in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg Eving Treo to Washington, d C, Bloomberg to Boston, Bloomberg one oh six one to San Francisco, Bloomberg nine sixty to the country, Sirius XM to the one nine team, and around the globe the Bloomberg Business app in Bloomberg Radio dot Com. This is Bloomberg Daybreak and it's five thirty on Wall Street.

Good morning. I'm Teren Moscow. I'm Nathan Hagar. Bloomberg Daybreak is brought to you by s E. I imagine you're asset management firms, operational infrastruct there's a competitive advantage. Let s E I show you how a se I C dot com slash I M S and we're just about four hours away from the Open of US training. Let's get you have to date in the news you need to know at this hour, US futures are falling lad lower by tech as we wrap up a volatile week.

Amazon is leading the decline, which shares down a thirteen and a half percent. Amazon is predicting the slowest holiday quarter growth in the company's history. Bloomberg Intelligence senior analysts Plunum Goyle has more on the results. Sales were a week across the board, guidance of the week, margins are week. I mean overall, you know, the bright star here that used to be WUS is also weaker both on sales

and margin. So I think there's a lot to digest, but it's kind of humming the same tunes as other results that we've seen earlier, where the consumer is slowing, spending is slowing, and hence the results are much weaker than expected. Bloomberg Intelligence analysts put Um Goyles says Amazon's market value is set to drop below one trillion dollars today, So are this week more than six hundred billion dollars and market value as on track to be erased from

America's five largest tech companies. Well, one of those tech companies avoiding the route, Karen is Apple those shares are up six tenths per cent after the company posted mostly positive results. Ed Ludlow has more on Apple's earnings from our Bloomberg NAIN sixty news room in San Francisco. It was a mixed bag of results. The stock really bounced around in after hours trading. The kind of thing that investors latched onto was the iPhone Sales in the quarter

were weakened and expected. Remember the new iPhone fourteen hand cent launched on September sixteenth, which gave two weeks in the end of the quarter to get an early read on demand. There. There was strength in MacBook, but weakness in services and iPad, and also impacts from foreign exchange. A stronger dollar continuing to be a headwind for megacap tech stocks for big tech companies all around the world. Ed Ludlow for Bloomberg News in San Francisco. All right,

and thanks. While staying in the tech world, the lad Musk has completed as forty four billion dollar acquisition of Twitterberg News has learned he has gotten rid of the CEO and other major executives must plans to be Twitter's chief executive for Dow. He may also do away with permanent bands on users, a category that includes former President Donald Trump. Turning to the U S economy, Karen, we're wrapping up the week with a few notable data points.

This morning we get the Employment Cost Index, University of Michigan Sentiment, Pending Home sales and Household Income and Spending n S andp futures are down twenty eight points right now. Dal Future is down sixty six NASDAK Future is falling down one hundred thirty eight. Straight ahead your latest local headlines, plus a check of sports, and this is Bloomberg. Thanks three On Wall Street forty six degrees now in Central Park, could be slow on northbound FDR driving. Got construction going

on the upper east side. Michael barrs here with more on what's going on in New York and around the world. Michael, thank you very much. Days and a quick thinking bus driver may have averted a tragedy in New York City. Police say forty four year old Dwayne Getty, who was arrested stop the bus and Queen's Board did it and pulled out a firearm toward the bus driver. Investigators say the gunman told the driver he was being chased and ordered him to drive in MYPD Deputy Chief John Klune.

The bus driver immediately opened all the doors to allow all passengers to exit. Once on the bus, the mail mate made statements that he was being chased and that the right that the bus driver to continue driving. Police say the bus driver and the suspect then traveled for more than thirty blocks when the driver slowed down and jumped out of the window. The bus drove on until

it hit a utility pool. New York City Mayor Eric Adams appointed Acting Fire Commissioner Laura Kavanaugh to leave the Department on the permanent basis, making her the first female commissioner in the one d fifty seven year history of the f D n Y. Adams called Kavanaugh proven and tested leader. Kavanaugh, who is forty, spoke after being sworn in where a shy, introverted only child could get a one way ticket to New York City, seeking to serve a higher purpose in the best city on Earth, and

two decades later find herself here. Leading the greatest fire department in the world through unprecedented times is something that could only happen here. America's top diplomat address the humanitarian crisis in Haiti's sparking protests at the u N over

whether military intervention is needed. Meeting with the Canadian Foreign Minister or Autoba Secretary of State Anthony B. Lincoln told reporters that Canada and the Biden administration agree that more likely needs to be done to help Haitian national police combat gangs. Between deepning food and fuel shortages, the growing color outbreak, and gangs blockheading ports, terrorizing civilians, the situation

is simply unsustainable. The chaos in the nation is blamed on the July assassination of former president jo Nel Moissey. Global News twenty four hours a day on air and on Bloomberg Quickdake, powered by more than journalists and analysts more than a hundred twenty countries. I'm MICHAELA bar This is Bloomberg, Nathan. Thank you, Michael all Street. Time for the Bloomberg Sports Update, brought to you by Try State

OUTI here's John Stenshower. All right, Anthon. The Nets are getting plenty of story from their stars again last night, Kyrie Evering thirty nine points, Kevin Duran thirty seven, but they're getting little from anyone else. Not good enough defense for the Nets are one and four lost in Barkley to Dallas one five and overtime. Mav star Luca Dontech

scored forty one points at a triple double. Tom Brady came out of that very short retirement to try and win his eighth Super Bowl, but Tampa Bay Is three and five lost at home to Baltimore. Two. Bradys only td Fast came in the final minute. The Giants expected white out Canarius Tony to have a big season, but he's hardly played in the Giants traded Tony to Kansas City for third and sixth round draft picks. Tony the last first round selection made by the former GM Dave Gentleman.

David Stearns resigned as team president Milwaukee Brewers and Summer connecting dots. The Mets are looking for a president. Stearns is a New York native. World Series starts tonight and used it with Justin Verlander on the mound for the Astros first ballot Hall of Famer about to win another Cy Young Award, but in his World Series career, we've used in him before that Detroit Verlander O wins six with the five point six eight r A. I would like to get a win. Yeah, I mean, I'm not gonna,

Like I said, that's not my goal. Um So I don't want to. I don't want to say that that Philly is lacking because innately that would make it a particular goal of mine. My goal is to go out and give us the best chance to win. If that ends up resulting in a win, great Aaronola starts to the Phillies, who've been around since the nineteenth century, but the only one the World Series. Twice the Astros and Phillies combined record this postseason sixteen and two. John stash

that war. Bloombergs for us. All right, John, thank you. Five thirty seven on Wall Street Time for the Tri State Business Report with Bloomberg. Didney's Pellgreeny or considered Trader Joe's in Brooklyn have voted against unionizing. The tally against only sixties six four, joining Trader Joe's United at the Williamsburg Store. A ding to the National Labor Relations Board, and if no objections are filed within five days, this vote will be certified. Major hedge funds and private equity

shops expanding in Connecticut. We're hearing Citadel, Blue Owl and a division of Roth's child are among the finance companies extending footprints are expanding leases in Greenwich and Stanford, and sources say Varian Fund Management is also looking for more space. One new Mark broker tells us the four hour bed to desk commute ground trip is just too onerous now

for those used to working from home. And as Westwood Bergen County's new hot real estate market, even as the housing market overall cools, North Jersey dot Com says Westwood is getting a lot of buyer interest now thanks to new developments and a thriving retail and dining space. With the Tri State Business Report, I'm Denise Pellegrini, Thank you Nasty 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 D affiliate radio stations around the world. Um Coerny, Dnahoe on kat R H in Houston. Sagging used car prices are starting to hurt the profits of dealers. I'm Wendy to lead on w f L A and Tampa this morning. I'm reporting on the latest time of court fight over a proposed transportations to attacks. I'm Stephen Carol and d AB

Digital Radio in London. We've been reporting on the British Bank not West warning of worsening economic conditions as it took a bigger than expected charge for souring loans. I'm to these Polygriny and um W w J in Detroit. I'm reporting on some big changes in the works for Michigan landlords and renters and those are some of the stories. Are hundred Bloomberg journalists and analysts you're working on this morning around the world. It's five thirty nine on Wall Street.

The following is an editorial from Bloomberg Opinion. Few Americans remember the horrors that polio once inflicted on children. A massive vaccination campaign nearly eradicated polio from the globe. Now, this highly contagious, sometime debilitating disease is a threat once again. Just twenty nine cases of wild polio have been recorded so far this year worldwide, while only one case in

the US has been recorded. Seventy positive samples of polio have shown up in nearby sewage testing experts estimate that for each case of paralytic polio, hundreds of others are infected without symptoms. Vaccine hesitancy and the rise of misinformation have created pockets of vulnerability, and even a small decrease in immunizations can lead to large outbreaks. Only through sustained investment can the world protect children from this devastating, yet

entirely avoidable disease. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or OPI n go on the

Bloomberg terminal. This has been Bloomberg opinion, and you can hear Bloomberg opinion editorial every weekday at this time, terminal customers can read more at O P I n go, and you can watch as futures move lower as some P futures are down thirty two points, now down, futures down ninety seven, and Nasdaq futures leading the declines, down a hundred forty seven points for a drop of one point three per cent. This is Bloomberg. The Bloomberg Sports

Report was brought to you by Audie. Don't let someone else drive off and the Audi model You've always wanted. Visit your local price state Audi dealer to get behind the wheel of yours today, or visit autie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day at Bloomberg dot com for the Bloomberg Business apt and at Bloomberg Quick Tape. This is

a Bloomberg Business Flash and I'm Cameron. Moscow stocks are sliding along with US DOCK Index futures as disappointing results from tech giants sours sentiment NASDAC pacing losses this morning down about one point three percent, with shares of Amazon dot Com down thirteen and a half percent after it had reported earnings. Apple faring better this morning, up more than half percent, and we checked the markets every fifteen

minutes throughout the trading day on Bloomberg. Right now, U s in P futures are down thirty one points down, futures down ninety three and nastack futures down on the decks. In Germany's down eight tenths of upper set ten year treasury down twenty two thirties seconds. He'll four point one percent yield on the two year four point three seven percent.

Nine x screwed oil is down when at a third percent down a dollar twenty one and eighty seven dollars, eighty seven cents of Arrol Comic School is down nine tenths per cent or fourteen dollars ten cents at sixteen fifty one fifty announced, and the euro point nine three against the dollar. 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. Bloomberg has learned that Elon Musk is in control of Twitter and announced at the CEO and the company's lawyer. Sale is originally valued at forty four billion dollars. Billionaire also intends to scrap lifelong bands on users. Russian President Vladimir Putin claimed in an hour's long speech that he has no intention of striking Ukraine with nuclear weapons, but Putin did point fingers at the US and other Western nations, claiming that they

are escalating the war there. In Thursday Night football, the Ravens beat the Buccaneers twenty two tonight game one of the World Series between the Phillies and the Astros. In the NBA, the Nets lost the Warriors one. In the NHL, the Bruins won the Capitol's lost Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts are more than a hundred twenty countries. Michael bar this is Bloomberg.

Thanks Michael. It's nine on Wall Street Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg day Break. Let's round out the week in tech earnings. For that, we are joined once again by Bloomberg Quick Take correspondent Alex Webb and boy Alex. What a way to end it here with Amazon shares right now? Just checking down thirteen and a half percent on this holiday sales forecast that really came in short of what Wall Street was expecting.

I was just talking with Jean Monster from lou Ventures. He thinks that, you know, Wall Street's gotten used to Amazon sort of oh outperforming, and that maybe this is

an overreaction. There's something to that. I think possibly the slight complication with Amazon, and this isn't the first quarter that we've seen this that yes, as as Jeans said, the expectation with Amazon is that if they or when they want to, they can turn us bigger and become profitable Now, the thing that happened during the lockdowns is they massively overspent on building out there essentially their warehouse capacity.

And in this quarter they had already said in the quarter just gone, they had said that they planned to cut down on expenses, but again expenses increased more unproportionately than revenue increase. So you know, despite the promises they had made, they kind of disappointed on that front. You add into that the comments on the upcoming Christmas quarter or the quarter the way in, and it becomes doubly painful that, you know, revenue not as great, but also

cost controls haven't been as good as expected. Well, how much more can Amazon shave casts? I mean quite a lot. You know, Amazon employees something like a million, I mean more than a million people globally. Um. You know, the fact is that it's e commerce business isn't terribly profitable. It gets most of its from profit from the cloud business. So you know, by extension, if you've tamped back on the on the e commerce business, then it kind of gives a bit of space for that, uh, those those

um aws the cloud businesses profits to be enjoyed. So you know, there's I'm sure a huge amount of chaff at Amazon that can be cut back, it would just also mean that top line revenue growth might also be affected. And I guess this is a reflection as well that you know, not only are people cutting back on spending and deliveries are maybe not going to be as high as they were during the pandemic, but just that the

cast picture is just enormous for Amazon as well. Yes, and when you have lots of orders coming in and you're able to say make if you have a street of twenty properties and you're able to deliver to half those properties, then the economics start to add up. But if those costs, if the spending starts to slow down and people are a little bit more circumspect about what they're buying, it doesn't become as cost effective to deliver, you know, the two three dollar piece to number forty two,

because um number thirty eight is ordering a television. You know, if everybody's just buying small stuff, the economics become a little bit more challenging. Now turning to Apple, now it's holding up a little bit better in the pre market, up a little bit more than a half percent. What's Apple doing right that maybe some of the other tech companies that reported this week aren't one of the massive

differences between Apple and say Amazon is it. All of its services kind of feed one beast, and that's the iPhone and even the Mac and the Apple Watch. You know, the Apple Watch doesn't really work unless you have an iPhone.

Um the Mac works better with an iPhone because you can take your calls on it because it hands off, and so it has a coherence to it, which have just continue to drive its customers towards buying that thousand dollar chunk of you know, aluminium and Antistan saying aluminiums whereas Amazon, Amazon has a sort of panoply of different offerings, not all of which feed the next one. It's not all geared towards driving people towards Amazon dot com. It's

not equally geared towards drowing people towards aws. It's a little bit less coherent because Apple has this compelling services business, this family of hardware, people go back time and again to buy the iPhone. I gotta ask you about Elon Musk now reportedly at least reported by Bloomberg CEO of firing Parague are Wall and making even more changes, potentially describing himself on his Twitter profile, which is I think it is a British term and I'm not sure it's

used quite as much in the US. Yeah. It. Now the challenge to the work really begins. How do you turn this company into a success story, particularly a success story that warrants the forty four billion dollar sticker price. There are some leavers that he can start pulling. Twitter has not been as good at targeting ads as for instance,

Meta has um it's average revenue p user. Not only does it have far fewer users than Facebook, about two hundred million compared to the two billion across the various Facebook platforms, but it gets less revenue per user than does its Silicon Valley rival. And so if you can improve the ads product, maybe maybe you can improve that.

Maybe you can also look at charging corporate subscriptions. So if you're not just a private individual and you're trying to reach customers or would be customers, then you have to pay for the privilege on being on Twitter. It might be harder challenge because Twitter isn't necessarily an essential place to be. You know, there are not as many

you says that they are on these other places. So how can he turned Twitter into a tech giant because at the moment it's a four billion dollar company makes it you know, at times ten times smaller by market captain Facebook, considerably smaller than Google or Apple. He's a long way to go. Now we'll have to see if I make some of those job cuts that were reported and he's now denying, but a lot more to come.

Alex Webb of Bloomberg Quicktake as always great to have you on with us, Karen Nathan, It is five four on Wall Street, and now for a legal story we're watching this morning. Well, Adidas dropping a Yeah, the mercurial rapper formerly known as Kanye West and the wake up US anti Semitic remarks will cost Adidas a nearly two fifty million dollar hit to its earnings this year, but it will cost Yea even more, reportedly one and a

half billion to break up. Also creates some arrests over the intellectual property rights developed in their almost decade long collaboration. For more Bloomberg's doing, Grosso speaks to attorney Zach Hurtz, who founded the law firm Sneaker and Street where legal services. Kanye has the trademarks for Yeasy wi z E Y yees Us, among others. His company has more than a hundred and sixty trademark applications and registrations for his Easy brand. So Kanye has the trademarks in this deal. What does

Adidas have? Yes, So Kanye owned his ip that he brought to the table, which is as you stated, Easy and y z Y, and all the logos and trademarks associated with his brand in this deal, all the new designs for the Adidas shoes, the three fifties, the seven fifties, literally almost every shoe that Adidas has made with Kanye, the design patents for those appear to be owned by Adidas.

What we see from the facts and everything on the table, with the design patents and the trademarks and such, it looks like Adidas owns almost all of the designs of the shoes and Kanye owns and was licensing his y z Y Easy brand to be put on those shoes. What does Kanye have the right to do owning the trade marks? He's gonna have the ability to use his

own trademarks what he owns on other shoes. Depending on the contract, it might have a wind down period, might have some restrictions in it that say for X amount of time, you can't enter this sneaker market or you know, running shoes or sid shoes, something like that. But I think upon termination like we have now, it's up to Kannie to take his trademarks with him and to have new designs or use his trademarks for other purposes on clothing, and you really just create new designs and new sneakers

and everything new on his own. He does own several other design patent. One was for the easy slide. To me, that's the most interesting one because although his name is on the design patent as an owner and the inventor, it's still associated with Adidas. There'll be a good legal argument or it'll be tricky to say that there's not confusion. So now as far as Adidas they on these designs, what can they do with that? Can they just put

out the same shoes without the easy trademarks? Yeah, you're right, there's been talk about that, you know, and that has happened before. Other companies have done such a thing. And as leaves with the contract expires, they'll take off his

branding and his trademarks. And some in the sneaker community I don't like that when that occurs, And I think in this situation, if Adidas to drift the Easy branding and started selling Easy, there'll be a lot of outreaches that Adidas for doing that after they terminated with Kanye, But I think that would be also sneak your heads and seas in the community who purposely wouldn't buy the shoes for that reason. That's that cur So Sneaker and

Streetwear Legal Services speaking with the Bloomberg student Grosso. Catch more in that interview, plus analysis of the latest legal news by listening to the Bloomberg Law Show at ten pm Eastern Time or subscribing to the Bloomberg Law Podcast, and attorneys can find exceptional legal research and business development tools. Have Bloomberg Law dot com and this is Bloomberg