Bloomberg Daybreak: October 28, 2022 - Hour 2 (Radio)

f d n Y commissioner. Plus, we're learning more about the hijack, passenger bus and queens. I'm Michael Barr. More ahead, I'm John Stageward swarts the Nets 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 day Break on Bloomberg. He Live in Free on New York, Bloomberg on Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius XM one nineteen and around the world on Bloomberg Radio dot Com and via the Bloomberg Business. Then good morning. I'm Nathan Hagar and I'm Karen. Moscow and US stock index futures are lower this morning, dragged down by NASDACK futures, which are leading the declines. It is coming up to

six oh one on Wall Street. We checked the markets every fifteen minutes throughout the trading day on Bloomberg SMP futures down twenty four points, now futures down forty one and NASDACK futures down one. One. Ten year treasury down twenty thirty seconds yield four point one percent, and they yield on the two year four point three seven percent. Nathan, Karen,

we begin with an earnings related sell off. It's on track to white 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 percent in early trading following earnings that fell short ed. Ludlow has details from our Bloomberg

nine sixty newsroom in San Francisco. There was a severe after hours reactions Amazon's forecast of the fourth Courts of the Red You 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 theme of 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 wind 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 grated, thanks well. Apple has managed to avoid the tech route. It shares are up almost one percent in early trading. Those sales of iPhones and

services were softer than expected. Apple's revenue and profit both topped estimates. Still apples CFO Luca my history warrants of a holiday slowdown. Overall, we believe to company year over 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

your impact from fort in exchange. Apple CFO look at my story, says sales of Mac computers with a client substantially. Stay tuned for analysis on both Apple and Amazon coming up shortly when we speak live with the loop a Ventures co founder Gene Munster, and we have some more earnings in the meantime to get you caught up on Karen's Shares of Intel or up almost five percent in

early trading. The chip maker's pledging a slash costs to combat a persistent slump and computer demand that's dragging down sales and profit. Gilliad Sciences shares are up almost five percent as well. That company boasted its earnings guidance for the full year, and shares of Pinterest are hired by almost eight percent. The social media company reported earnings and revenue that beat estimates well Up Next Nathan, the focus turns to big oil. Both Exxon Mobile and Chevron report

this morning, and 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 post ability 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 Blinger, Bloomberg Day Break, Thanks Jeff. Meantime, 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 and profit in ninety days. Those comments from President Biden too a sharp response from oil industry leaders. They say refiners don't set the price of the pump and that Washington should leverage US energy production. But another major story we're following this morning, Nathan closes the book

on a six month takeover Saga. Elon Musk has completed his forty four billion dollar acquisition of Twitter, and Bloomberg News has learning 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 Blosom, There's been a lot of speculation about how much Elon Musk is

going to change Twister. You know how the room is about seven trib job cuts, the reinstatement of people like Donald Trump to the platform, a complete change in the business model, like twelve months. You could see him introduce some kind of subscription tire 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 Blosom says Musk is expected to remain CEO in the interim, but may eventually see the rule in the long term. Turning to the U. S. Economy, Now, Karen, we wrap up the week with a few notable data points covering inflation, sentiment, and spending. We get more from bloomberg'san he Dells Junis 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 is any surprise could influence the course of Fellow will reserve interest rate hikes meantime. Bloomberg Economics as today's University of Michigan consumer sentiment and NIX relate October will remain low by historic standards, highlighting recession risks. Also one tap today the employment Costs index and pending home sales. Bloomberg day Break r if any thanks in Asia overnight

it was all about the Yemen. The currency has rebounded this week, but is reversing that trend this morning, wakening to one seven point seven zero against the dollar, as after the BANKA Japan stood pad on its ultra low interest rate policy. On Bloomberg Daybreak, Asia anchor Brian Curtis has a story, This is the b o J pushing back against speculation it might change its tumb no go. The board left the negative rate, the ten uere 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 for a cast to two point nine percent for the year ending in March. A predicted price growth will slow to one point six percent in the next twelve months. The b o J is sucking a tight rope here as the Dobish dance puts downward pressure on the end while the government is spending billions supporting it.

Brian Curtis Bloomberg, Gabrie right, Brian, Thanks s and P. Futures down twenty four points down, Futures down fifty Nasdack Futures down one twenty one and straight ahead your latest local headlines plus a check of sports. And this is Bloomberg. Thanks Karen. Six oh seven on Wall Street, forty six degrees in Central Park, slow on the b que East, found between Hamilton Avenue and Cabin Plaza. 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. We're learning more about the Nightmari's commute for public transit bus riders in New York City. Police saying m T A bus was hijacked in Queens yesterday. The bus driver is hailed as a hero after the suspect, armed with what turned out to be a bb gun, confronted the veteran driver. The forty four year old suspected the gunman, Dwayne Gandy, was taken into custody after the

bus crashed into a ute lity pole. In MYPD, 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 hundred 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 one of making the impossible possible. Kavanaugh, who is forty, has served as acting commissioner since the retirement of Commissioner Daniel Nigro 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 less than two weeks away, the NYPD is warning that racially motivated and anti government extremists good target poll workers, political rallies, politicians, and voting sites. Police say there are

currently no specific threats in the city. North Korea fired 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 a hundred twenty countries. Michael Barrn This is Bloomberg, Nathan. Thanks Michael. Turn up to six ten on Wall Street time for the Bloomberg

Sports Update, brought to you you by Tri State OUTI. Here's John Stenshower. All right, Nathan. After a turbulent off season with a star player demanded a trade unless the coach and Geneal Menser fired. Maybe not a surprise. The Nets are off to the slow start. They lost at Barkley's Dadallas one overtime. Luke at Donsitch forty one point to the triple double for the Mass Kevin Duran, who was

sent to that trade demand, scored thirty seven points. Kyrie even had thirty nine, but the Nets too much of 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. The Knicks had better balance than three and one. They played tonight in Milwaukee at Tampa Bay. Bucks started the season two and oh. Now they're three and five. Lost at home to Baltimore twenty seven to twenty two. The Ravens out rushed Tampa

Bay two thirty one to forty four years. Tom Brady on what went wrong. They're down throwing run games at two point plays and short yardage start first quarter, started the third quarter very good offense football. They're only positive for Tampa right now in the NFC souve No. One's over five hundred, so the bus can win the division, but it's hard to see them making a Super Bowl run the way they're playing now, Giants or six and one without any production from last year's first round draft pick,

wide receiver Kedarius Tony. He hurt one hamstring and then the other, and the Giants just traded Tony to Kansas City for third and sixth round draft picks. World Series begins tonight in Houston. The Astros won a hundred and six games in the regular season, the Phillies one eight seven. That's the largest disparity since oh six. That's nineteen o six.

John statually wear Bluebern Sports Okay, John, thanks SMP features down down twenty six points, South Features down sixty six NASTAC futures leading the declines down down a hundred twenty three points or one point one percent. Amazon shares down twelve point seven per cent. We'll talk about tech earnings next with Gene Munster, the co founder of Loop Ventures. 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 autie offers dot com for more information. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business at and at Bloomberg Quick Tape. This is a Bloomberg Business Clash and I'm Karen Moscow. This updates brought to you by s C. I said, managers don't get results that are off the charts when their

solutions are off the shelf. Learned how seis operating platform can turn infrastructure into a competitive advantage at se i C dot com. Slash check watching some earnings crossing the Bloomberg Chevron blowing past analysts estimates for the second highest earnings in history, ex olerating a profit hall for the world's biggest oil explorers and Chevron shares of two point

three and early trading. Meanwhile, futures are lower. SNP futures down twenty eight points and now futures down seventy four Fastack futures falling down one and a ten year treasury down seconds on four point zero zero percent. And as a Bloomberg Business Flash now here Smuggle Barr with Moore on what's going on around the world. Michael, Karen, thank you very much. With poles showing Republicans gaining ground. Democrats are turning to former President Obama as the mid terms approach.

He's campaigning today in Atlanta for Senator Raphael Warnock, who was locked in a tight race against former football star Herschel Walker. Thursday Night football, the Ravens beat the Buccaneers two tonight, Game one of the World Series between the Phillies and the Astros. In the NBA, the Nets lost, the Warriors won NHL, the Bruins won, the Capital's lost.

Global News twenty four hours a day on air and on Bloomberg Quickdake, powered by more than twenty seven hundred journalists and analyst are more than countries him Michael Barr, and this is Bloomberg, Nathan. Thanks Michael. At six nineteen on Wall Street Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg day Break. At the end of a bruising week for tech earnings, Amazon is the latest stock to get punished down, down twelve and three quarters per

cent on a week holiday forecast. But if there's one somewhat bright spot, it maybe Apple. Those shares are higher by nearly one percent this morning. Let's get some more insights now from Gene Monster, the co founder of Loup Ventures. I spoke with Geane earlier this morning. He told me that tech investors are looking for two things right now,

performance and potential. 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 this names 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 that 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 every 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, we're 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 guns, 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 percent of the time. They coming 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 meg tech 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 Ellen right now, he still has the golden touch, so it is investable. 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 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 still a side project for Elen. 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. I think that more than two year perspective. We own some of these, we own Meta, we own Amazon. They've had a tough week, but 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 gonna fade or we'll go away. Eventually, we'll stabilize, and these companies are going to right size their growth rates back to what we're accustomed to. And that was g Monster, co founder of Louke Ventures. Or thanks to

Gene for joining us this morning on Bloomberg Daybreak. As we continue to watch Amazon shares fall in the pre market, there now down twelve point seven percent, Apple shares are higher by almost one percent. Tesla is moving lower, down one percent, with Elon Musk taking over as CEO, not just of Tesla, but now of Twitter. SMB futures down twenty four points, Staff futures down forty six and nastack futures are lower by a hundred seventeen points. That is

a drop of one per cent. This is Bloomberg. Bloomberg day Break, brought to you by Ancient Accountants and Advisors, the right fit tax and accounting firm that you need to succeed. Visit them at Ancient dot com slash v i P to learn more. That's Ancient dot Com slash v i P broadcasting live from the Bloomberg Interactive Broker

Studio in New York. Bloomberg E Living Freedom to Washington, d C, Bloomberg one to Boston, Bloomberg one O six one to San Francisco, Bloomberg N sixty to the Country, Sirius XM to the one nine and around the globe the Bloomberg Business and Bloomberg Radio dot com. This is Bloomberg Daybreak. It's six thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow, and we're just about three hours away from the open of US trading time for the five things so you need to notice

start your day. Brought to you by I B k R Investment Advisors switched to Interactive Brokers for lowest cost global trading and turnkey custody solutions. No ticket charges and no conflicts of your interests at ibkr dot com slash r I a up first. US futures are falling this morning. That's let lower by tech as we wrap up a

volatile week, and Amazon is leading to declines. Those shares are down about twelve points seven percent in early trading, Amazon predicting the slowest holiday quarter growth in the company's history. Bloomberg Intelligence senior analyst Punum Goyle has more in the results. Sales were weak across the board, guidance of the week, margins are week I mean overall, you know, the bright star here that used to be a WS 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. And Bloomberg and Tell Gince analyst put Him Goyle says Amazon's market values set to drop below one trillion dollars today, so furtherest week more than six hundred billion dollars and market value is on track to be erased from America's five largest tech companies. Well one company avoiding the tech round, Care and his Apple. Those shares are up by one percent after the company posted mostly positive results. Ed Ludlow has more from our

Bloomberg nine 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 head win for megacap text dogs for big tech companies all around the world. Ed Ludlow for Bloomberg News in San Francisco. All right, and thanks. Shares of Chevron more than two percent or an aged topped analysts estimates as the oil giant posted his second highest profit ever. We also heard from exce on it

raised its dividend more than expected. As the oil giant disclosed one of his largest ever quarterly profits, and Elon Musk has completed his forty four billion dollar acquisition of Twitter. Karen Bloomberg News has learned he's gotten rid of the CEO and other major executives must plans to be Twitter's chief executive for now. He may also do away with permanent user bands, the category that includes former President Donald Trump. And that's the five things that you need to notice

start your day. Brought to you by Interactive broker straight Ahead, your latest local headlines, plus the check of sports. And this is Bloomberg. Thanks Karen sixty three on Wall Street wear forty six degrees in Central Park on an accident westbound Belt Parkway near Erskine Street. Michael Barr's here with what else is going on in New York and around the world. Good morning Michael, Good morning Nathan. A quick thinking bus driver may have averted a tragedy in New

York City. Police say a forty four year old man, Dwayne Getty, who was eventually arrested, style the bus and Queen's boarded it and pulled out a firearm toward the bus driver. In YPD, Deputy Chief John Klune, the bus driver immediately opened all the doors to allow all passagers to exit. Once on the bus, the milby 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 poll. New York City Mayor Eric Adams appointed Acting Fire Commissioner Laura Kavanaugh to lead the department on a permanent basis, making her the first female commissioner in the one d fifty seven year history of the f D n Y. 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 FI department in the world through unprecedented times is something that could only happen here. President Joe Biden traveled upstate New York to praise Micron's investment of one hundred billion dollars over the next two decades to build up semiconductor factories

in the Syracuse area. New York Governor Kathy Hokel, speaking after the President praised Micron investing in the area that had lost a lot of manufacturing jobs over the decades. Are shared values and how we can work together the private sector and government, saying we can work together to this build and energize a community that have been forgotten for so long. The President's visit comes after Senator Chuck Schumer says he's feeling real good about the upcoming election.

This after the Majority leader was called on a hot mic earlier speaking to the President expressing down about the democrats chances in the U. S. Senate race in Georgia. Workers at a Trader's Joe's in New York City voted against unizing. According to italy provided by the National Labor Relations Board, the vote was nine to four to sixty six against forming a union at the store, which is

located in the Williamsburg neighborhood of Brooklyn. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries. At Michael bar This is Bloomberg Nathan, Thanks Michael. Almost six thirty six on Wall Street time for the Bloomberg Sports Update, brought to by Tri State. Out of Here's John stash Our. All right, Nathan. The Nets getting plenty of storing from their stars again

last night. Kyrie Every thirty nine points, Kevin Duran thirty seven. But they're getting a little from anyone else. Not good enough defense, and the Nets are one and four. They lost at Barkleys to Dallas one five and overtime. Mav star Luke Danton scored forty one. He had a triple double. Tom Brady came out of that very short retirement try and win his eighth Super Bowl, but Tampa Bay just three and five lost a home to Baltimore twenty two.

Brady's only TV ask came in the final minute. The Giants expected white out kid Areas Tony to have a big season in his second season. He's hardly played, and the Giants just traded Tony to Kansas City for third and sixth round draft picks. Tony the last first round selection made by the former GM Dave Gettleman. David Sterns resigned as the team president Milwaukee Brewers, and some are connecting dots. The Mets are looking for a president, and

Sterns is in New York. Native. World Series starts tonight in Houston with Justin Verlander on the bound for the Astro first ballot Hall of Famer about to win another Side Young Award, but his World Series career with Houston before that Detroit, Verlander owen six with a five point six eight e R. 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 feels like it's lacking because in nately that would make it a particular goal of mine. My goal is to go out and give us the best chance to win it that ends up resulting in a win. Great Aaron Nola starts for the Phillies have been around since the nineteenth century that only won the

World Series twice. The Astro and Philly's combined record this postseason st John Stash all right, John, thank you sixty seven on Wall Street Time to take a look at stocks some of the names moving in the pre market. For that, we are joined by Bloomberg Television anchor and Markets correspondent Danny Berger, as the earnings focus shifts from tech to big oil, and we're getting some big results

this morning from x On Mobile and Chevron. Danny, Yeah, I mean expectations were already high, given how high not gas prices have been, given how high oil prices have been. An even so, Chevron and Exxon just blowing through expectations. Chevron, their EPs came in at five dollars and fifty six cents. The estimate was for just under five dollars. And Exxon, for their beat, it came in EPs at four dollars and forty five cents. The expectation had been three dollars

and eight nine cents, So a big beat here. Again, prices playing into this, but also a lot of the Permian basin output, all of that was higher than expected as well. So really strong quarters continues off the back of about the record quarters. Chev On. This was their second highest profit ever UM and they're expanding capital expenditures because of this. Um x On, for its part, is boosting its dividend. Chevron is not, which is perhaps r x ON is outperforming pre market. It's up three and

a third percent. Chevron is just over one and a half percent. But Nathan, you also got to wonder are these continued big old monster profits also going to attract the attention and potential criticism of the White House. Yeah, we heard some of that criticism just yesterday, once again from President Biden on the campaign trail. We got to keep talking though about tech. We've wrapped up earning season there with really disappointing results from Amazon. Yeah, I mean

it's it's really all about the um there. You know, usually what's their their peak season, the Christmas holiday season, seeing sales growth at two to eight percent that is below expectations, so shares off by about twelve percent in the pre market this morning. It's not just this idea that consumers aren't spending as much. That is obviously a

big part of it. The CEFO talks about this on the earnings call, that you know, wallets are getting pinched from the consumers, they're not spending as much of the season. But part of the issue also is that of course they one will recall during COVID times and we couldn't go to normal shops. People were spending pretty heavily UM

on Amazon. So what did that mean? It meant that they plowed a lot of money into growing, into more sorting facilities, things like that, and now all of a sudden that are looking at a picture where growth isn't as strong, it isn't as fast. So it's something of perhaps they just spent too far, too fast, and now

they need to rerange a bit. Yeah, and it's interesting as well though to see Apple shares now at one point one percent on an expectation that even with a consumers getting pinched, people could still be spending on iPhones and Apple services. Bloomberg TV Acre Markets correspondent Danny Burgers always good to have you on with us in the pre market as we take a look at stocks as a whole ahead of the open. Few tachers are moving lower.

Lodal futures are trimming some of their declines after the earnings from ex On Mobile and Chevron DEL futures down thirty four points, SMP futures are down twenty one and NASDACK futures still leading the declines, down one percent or a hundred eleven points. You're listening to Bloomberg Day right. Bloomberg Sports Report was brought to you by Audie. Don't

let someone else drive off in the Autie model. You've always wanted to visit your local try state Autie Deally 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 At and at Bloomberg Quicktape. He's a

Bloomberg Business Flash and I'm Karen. Moscow and nasdack. Futures are leading declines this morning, another busy morning for corporate earnings, and we went the first word breaking news dance for today's morning call. And here's Tatiana Dari. Tatiana, good morning, Good morning, Karen. Like you said, Futures lowder this morning after more disappointing tech earnings, and now futures lower by fifty two points, AS and Peace lower by twenty five

and NAS jagged down. Looking across as AT treasuries reversing recent gains with a ten year yield up nearly eight basis points. The dollar is stronger, while the Japanese and weakened as the b o J stuck to its easy policy back in the US. On the economic front, today, we have PC inflation data, personal spending and University of Michigan consumer sentiment. In early trading, we're seeing Amazon down

twelve percent after forecasting its lowest holiday sales growth ever. Apple, on the other hand, is higher by one percent after its numbers. Regarding other earnings, Intel up five after bound two aggressively cut costs, and Chevron up to after after posting its second highest earnings in the company's history. Wrapping things up here, Ellen Moss completed his forty four billion dollar acquisition of Twitter, and he said to assume the role of CEO. Live from the first and breaking news desk,

I'm Tatiana Dariak Karen. Yeah, that's going on, Tatiana, thank you. How to hear live breaking news over your Bloomberg type squawk on your terminal SCU A w K and that's a Bloomberg business flash. Now here's Michael Barrow with more on what's going on around the world. Michael Karen, thank

you very much. Russian President Vladimir Putin claimed 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 Capital's Lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists and analysts more than countries. Michael Barr and this is Bloomberg. Karen, all right, Michael bar thank you.

At six nine on Wall Street. It's turned to news now in science and technology with the Bloomberg n j I T STEM Report, and it's brought to you by New Jersey Institute of Technology, ranked to top one hundred national university by US News and World Report and number fourteen in the nation on Money's Best Colleges list. Learn more at n j I T dot A d U. And now here's just making news and science, technology, engineering,

and math. To NASA spacecraft at Mars, one in the surface and the other in orbit have reached the biggest meteor strikes and impact craters yet. The journal Science reports the high speed barrages last year since seismic waves rippling thousands of miles across Mars. The larger the two strikes turned out boulder sized slabs of ice, which may help researchers look for ways future astronauts skin tap into Mars's

natural resources. The European Union has agreed on a deal to effectively ban internal combustion engine cars from twenty d five. It's a movement that would reshape transportation. It also would mark a significant step on the path to reduce carbon emissions. In thirteen years, carmakers would have to reach a zero emission target. And the battle is brewing around Europe's rooftop

over the planet's most precious resource. The crystal clear waters issuing from the Alps could become increasingly contested as climate changing Lasier melt affect the lives of tens of millions in the coming years. Italy wants them for crop irrigation in the spring and summer. Swiss authorities want to hold up flows to ensure their hydroelectric plants can rev up when needed. And as the Bloomberg and J. I. T.

Stemmerapoortt Nathan, thank you, Karen. We are live from the Bloomberg Interactive Brokers Studios, where it's coming up to sixty one on Wall Street Time Now to check what's going on in d C. Some of the top stories Internation's capital include President Biden crowing about the Chips bill while demanding oil companies cut prices, presidents saying some Americans are better off despite inflation, and former President Trump showing out

twenty million dollars to support his sent candidates. Also making news, democrats struggles to find an economic message highlighted in races in Nevada. It's a story written by Bloomberg government reporter Emily Wilkins, and Emily is here with us now back from the Silver State. Emily, where I guess you've been

talking to voters? What are they saying? So when I talked to a number of voters, a lot of them were undecided, which probably isn't that surprising given that that about a third of Nevada's electorate is completely unaffiliated with either party. And a lot of folks said that, you know, their top issue was the economy. It's the higher prices, it's inflation. This is a sign of what we are seeing nationally right now. And Democrats in Nevada, it's not

that they're not messaging about the economy. They are going out and they are talking about it, but they're just

trying to find a message that really sticks. You know, a lot of folks, you asked them what they blamed the economy on, and they'll acknowledge that, sure, there are problems with Ukraine, that there was the pandemic, but a lot of them still believe that the Biden administration, the amount of spending that they did, and just some of the decisions that they've made, has all played a factor

into the current high prices that we're seeing. And that's what Democrats are up against as they go into election day. And that is a really interesting spot, Nathan, not just because there are so many races, You've got three house races, the Senate race, but also because that state was hit particularly hard by COVID and is still hit hard. Gas prices there are some of the highest in the nation.

They've got problems with rent, problems with mortgages, and so it's very very much a key place where Democrats need to get their message together on the economy and make sure that they are projecting that message in the next

two weeks and talking about those high gas prices. Emily Now that we've gotten these earnings from x On Mobile, the highest earnings in their hundred fifty two year history, and the second highest earnings ever for Chevron, you have to wonder whether this economic message is something that the President is gonna keep focusing on. It definitely seems to be the case because Biden has again urged oil companies to cut prices after seeing some of these really high profits.

And this plays right into the part of the Democrats message is that they are blaming bit oil companies, calling them big oils, saying that they are the reason that prices are so high that they need to bring prices back down, and that is resounding with folks. A lot of Americans out there. They don't necessarily trust big corporations or they have some sort of skepticism about them, and so that's what that message plays off of. Of course, the turke is that Americans do need to actually hear

that message. A lot of them, you know, they go to the grocery store, they go to the gas pump, they see the prices there. But hearing the message is a little difficult right now, just because there are so much information, so many ads being pumped on tv UM and that's really a trick that the Democrats are are going to need to sort of hone in focus on

that message in in the next few weeks. And interesting to hear added to the message, Emily, this interview that the President gave last night to News Nation television network and one point saying many Americans are better off despite inflation. What's he what's his reasoning there? So this is something we've seen the White House to do a lot this year, and they've tried to point to the indicators that they think are good, even though inflation is out of forty

year high. So in this interview, Biden ipointed to the fact that they've created between six thousand and seven thousand, six hundred thousand and seven hundred thousand manufacturing jobs UM. They also pointed to stronger than expected growth in the US economic output in the previous quarter UM and really trying to tout those signs. We've seen this, I said, as I said before, with the Biden administration continuing to

tout the low unemployment UM. But of course that has come with the tradeoff, and the tradeoff has been inflation. And as we get to this point in the mid term, Emily, with the economic message coming to the four very interesting now to see former President Donald Trump sort of putting his toe in with quite a lot of money from his super Pact. Yeah, Trum is finally putting his money where his mouth is. He's given twenty million to candidates in October. A lot of these are candidates who are

running for the Senate. Obviously that that's the big competitive one where it's still really unclear which way we'll go. Trump's invested into kind of some of the basic races that you would expect, Georgia and Nevada, Nevada, Ohio, Pennsylvania, um. But he's also invested in Arizona, which is interesting because the pack with ties to Republican leader Mitch McConnell cut it's spending in Arizona, so if it's focus on more competitive states, so you're really seeing Trump go ahead and

step in there. Did also knows that it's not like Trump is draining his war chest right now. Uh, he has ninety two million dollars that he has raised, the largest in the Republican Party. Twenty million is nothing to sneeze at, but it also kind of shows that that he's keeping a lot of his powder dry at this

point for potentially and potentially beyond. Yeah, And I wanted to get into that a little bit, wondering how much of an impact this amount of spending could have at this point in the election, when we're just less than two weeks away and there's already early voting underway. We got about thirty seconds left here. That's a really interesting question, Nathan, because it kind of goes to the question of how

much saturation can Americans take. Certainly there are some folks who really haven't decided to start deciding who they're going to vote for. Maybe these ads reached down, maybe they see something that they really like. But for a lot of folks, they've been so bombarded with ads in these key swing states that they're just tuning things out at this point. And I saw that story you wrote on

the Bloomberg Terminal. That's something that the voters in Nevada had been telling you as well, that they just feel like they're being bombarded by the ads. Want to encourage our listeners on the Bloomberg terminal check out that story from Emily Wilkins. Nevada races show Democrats struggle to find an economic message and more on all these stories we've been talking about. Just go to Bloomberg dot com or

the Bloomberg terminal. Follow all the latest on Bloomberg Radio in Washington at Bloomberg and one oh five point seven FM h D two. Continuing to watch. Shares of x on mobile at one point eight percent after the highest earnings in its hundred fifty two year history. Chevron shares are hired by one percent as well, second highest earnings ever. SMP futures are down twenty two points, DAL futures down thirty three NASDAC futures still leading the declines, down one

percent or a hundred fourteen points. Much more to come on Bloomberg Surveillance. That's next for Karen Moscow. I'm Nathan Hagar. This is Bloomberg