Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
The jump in Nasdaq futures follows better than expected earnings from both Amazon and Facebook parent Meta Platforms. Let's get the details from Bloomberg's John Tucker John Nathan Holidays.
Spending online led to strong growth in sales and profit for Amazon, and the craze around artificial intelligence driving healthy sales and its cloud computing arm. Its profit last quarter surge to ten point six billion dollars. That's the strongest in two years, and it got there in part by cutting about thirty five thousand jobs. Facebook parent Meta reported fourth quarter results that beat expectations. They gave an outlook that's seen as strong. They also partly got there as
a result of cost cutting. Meta cut head count by twenty two percent last year, and they also had money to spare, Meta unveiling plans for a fifty billion dollar stock buyback and even announcing its first ever quarterly dibenend. The two stocks have combined to serve by more than two hundred seventy billion dollars in pre market trading right now, Meta up more than eighteen percent Amazon is up about nine percent. John Tucker, Bloomberg Radio.
Right, John, thanks Well, Meta investors are not the only ones reaping the benefits of the company's first ever dividend. Chief executive Mark Zuckerberg stands to receive a payout of about seven hundred million dollars a year. According to data compiled by Bloomberg, Zuckerberg holds about three hundred and fifty million shares, and that means he would take home about one hundred and seventy five million dollars in each quarterly payment before taxes.
Well, Karen, it's a different earning story at Apple. Those shares are down about one percent. The company's latest quarterly results are triggering investor fears that Apple's losing clout in China, which generates roughly a fifth of its sales. Bloomberg's Emily Chang spoke with one of Apple's top executives after that earnings report.
I did just speak with Apple CFO Luka Maastri. He said, we're not happy with it, but we know that China is the most competitive market in the world and we do still see a lot of long term opportunity there. He did call out that the iPhone declined less than the other product categories. That is, the iPhone did better than the other product categories. In China, he said that there they saw a record install base. They're still seeing
strong growth in upgraders. But again, you know, this is a market that folks have been very concerned.
About, and Bloomberg's Emily Chang says revenue from China plunged thirteen percent last quarter. That marked the worst decline since the twenty eighteen holiday season.
Well, Nathan, the world's leading AI chip maker, is looking to grow overseas, and Videos CEO Jensen Huang says countries like India, Japan, France, and Canada are talking more about building what he calls sovereign AI capabilities. He says that focus on homegrown AI infrastructure will drive demand for invidious products.
Has become abundantly clear to each one of the countries that their natural resource, which is the data of their country, should be refined and produce intelligence of their country for their country.
And Video CEO Jensen Huong tells Bloomberg it's an America's interest for companies to win in overseas markets well.
A big tech scribe in the spotlight this morning, Karen It is also a big day on the economic front. We get the highly anticipated jobs report for the month of January, and the median forecast is for a gain of one hundred and eighty five thousand jobs. We get a preview now from Bloomberg's Michael McKee.
The FED is no longer expecting a big jump in unemployment and wants to see a strong labor market. Chairman J Powell said this week economists think they will get it. The forecast is for another month of large job gains, and while there is a slight tick up in unemployment scene, January should be the twenty fourth consecutive month with a jobless rate under four percent. What the numbers won't do
is bring any action from the Central Bank. Although Powell suggests rake cuts are coming, he all but ruled out the next meeting in March. Michael Key, Bloomberg Radio.
All right, Mike, thanks, And speaking of J. Powell, we'll hear more from the Fed chairman this weekend. He will appear on sixty Minutes on CBS this Sunday. The network says Powell will discuss inflation risks, expected rate cuts, and the banking system.
Well Karen Monetary policies also in focus in Europe. Despite leaving rates unchanged yesterday, the Bank of England did open the door to interest rate cuts this year, but BOE Governor Andrew Bailey tells Bloomberg factors like Middle East turmoil and rising living standards could be inflationary.
We haven't cleared a risk, by the way, a new risk actually, which is we're really reflecting obviously sort of tragic events of them, at least in the impact that can have for the Red Sea effects. So I think now the question is for us as really is for how long do we need to mind tine this stance going forwards? You know, I've said a number of times we're going We're not making predictions.
At this point.
BOE Governor Andrew Bailey's comments come as the Monetary Policy Committee in the UK saw its first member vote to cut rates since the Panda Well.
Turning back to the markets, Nathan, we continue to follow shares of New York Community Bank Corp. They've tumbled for two straight days as well. Street downgrades piled up and Moody's put the lender on review for a credit rating cut. The stock is trading at its lowest level since two thousand. It's sank eleven percent yesterday, adding to Wednesday's record thirty eight percent plunge.
And shares of Clorox are up more than seven percent in early trading. Careen, the company, which makes Pine salt surface cleaners and Glad trash bags, is raising its sales and profit forecast for the year. Clorox has restocked its inventory rapidly following a cyber hack that paralyzed its manufacturing operations last.
Year, and Nathan Visa said it blocked a record amount of suspected fraud last year. The San Francisco based payments giant says it blocked forty billion dollars worth, and that's nearly double the twenty three billion scene in the year before. Visa says block transactions in the US were out more than four hundred and fifty percent year on year in December. Time now for a look at some of the other
stories making news around the world. For that, we're joined by Bloomberg's Amy Morris Amy, Good morning, Good morning, Karen.
Senate negotiators are closing in on a deal now that would address the southern border and send aid to Israel and Ukraine. Bloomberg's Nancy lyons with the latest Senate.
Majority Leader Chuck Schumer sounded optimistic during a speech on the Senate floor.
Conversations are ongoing, some issues still need resolution, but we are getting very close on the National Security supplemental.
Schumer says the text of the proposal will be ready no later than Sunday, with the vote planned for midweek. It's expected to provide money for more border agents, as well as grant the president new powers to expedite the deportation of undocumented migrants, and also titan criteria for applying for asylum in Washington, Nancy lyons Bloomberg Radio.
Meanwhile, the acting head of Immigration and Customs Enforcement has revealed a big operation resulting in one hundred and seventy one arrests in more than two dozen cities. ISA director Patrick Lechligner praised the agency's officers, who he said, work hard despite having few resources.
We're working with the Department and Administration and our partners obviously in Congress from appropriations.
Listen, we need more resources and we're working to get that as.
Hard as we can.
Leck Liner warned his team may have to make some tough decisions if Congress does not provide more funding by March. President Biden meanwhile falling out of favor with minority voters. A new poll done in Texas shows Donald Trump holds a six point lead among Hispanics. Mark Jones ran the poll for the University of Houston.
While Biden handily defeated Trump among Latinos back in twenty twenty, now they're effectively tied, with Trump having a fight advantage.
Jones says the president is losing Latino support along the border, where the states push to stop illegal immigration is popular. Votors in South Carolina are said to cast the first ballots in the Democratic primary tomorrow. The Palmetto state was essential in helping Biden's twenty twenty campaign turn around. Valley Brook outreached Baptist Church pastor Curtis Johnson is concerned about the lack of enthusiasm among black voters this time around.
I am concerned about lack of enthusiasm. I am concerned that so many about a community, and I understand feeling that some of the issues that are more relevant to us and not being addressed.
More than twenty two percent of South Carolinians planning to vote in the Democratic primary tomorrow said they were undecided on which candidate would receive their vote. Global news twenty four hours a day and whenever you want it with Bloomberg News Now, I maybe Morris and this is Bloomberg Kear.
Right, Amy. Thanks. We do bring you news throughout the day right here on Bloomberg Radio. But now you can get the latest news on demand whenever you want it. Just subscribe to Bloomberg News Now to get the latest headlines of the click of a button. Get informed on your schedule. You can listen and subscribe to Bloomberg News Now on the Bloomberg Business app, Bloomberg dot Com, plus apples, Spotify,
and anywhere else you get your podcasts. I'm now for the Bloombergy Scores update with Dan Schwartzman.
Dan, Good morning, Karen.
Round two of the eighteen and T Pebble Beach Pro Am coming up later this morning. Thomas Detria topped the leaderboard after the first round at nine under in second American Patrick Canley in third place Matthew Pavon at seven under. Meanwhile, big trade in Major League Baseball the Baltimore Orioles acquiring former Cy Young Award winner Corbyn Burns from the Milwaukee Brewers in return the Oriols shipping to Milwaukee Joey Ortiz, an infielder left handed DL Hall, as well as the
thirty fourth pick in the twenty twenty four draft. Burns coming off the season of going ten and eight for three point three nine ERA and two hundred tricads in a little over one hundred ninety three innings. Burns will be a free agent after next year. NBA scoreboard. Big win by the Lakers as they went on the road in Boston.
Here's a dry by Reeves slips it by the back of the corner to Princes, drives the baseline, skips at Hatchamurra.
Up top, it goes the're all solo train till three. That's courtesy of ESPN. Boston losing at home to the Lakers one fourteen to one oh five. The Knicks continue to be red hot. Day now won nine trade I come from behind one o nine one oh five home win over the Indiana Pacers. Jalen Brunson forty points in the win for New York Cavaliers. A one eight one oh one win over the Grizzlies in Memphis. All the seventy six Ers slip past the Utah Jazz one twenty
seven to one twenty four. Speaking of the Sixers, big news as reigning league MVP Joel Embiid will be missing some time after he suffered a lateral meniscus injury in his left knee when Ford Jonathan Comingo the Golden State Warriors fell on his leg on Tuesday, and Beid's going to be out the rest of the weekend. Treatment options are being thought out. That's your Bloomberg Sports update. I'm Dan Schwartzman.
From coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg day Break.
Good morning. I'm Nathan Hager. Big tech remains a big focus for investors. We got earnings after the bell yesterday from Apple, Amazon, and Metal platforms for Amazon and Meta. Cost cutting and restrategizing seem to be paying off, and even Apple has gotten a return to growth, but that's getting overshadowed just a bit by a slowdown in China. Let's get more on these tech earnings now. We're joined
by Bloomberg's Alex Webb and Alex. Let's start off with Meta because that stock is really getting attention this morning, a big surge in the shares. Is this just all about the fact that investors are going to get a dividend for the first time.
I'm sure that is a big factor. It's kind of interesting. It's almost like the final pillar in a pivot. Well, I don't if it's final way with that we do more, but it's another pillar in this pivot away from being perceived just as an outright growth stock. Right that the obviously we've seen in over the past year or so that growth stocks aren't being rewarded in quite the same way. People are looking for something a little bit different, and we've seen Meta really focus on a thing. It had
its so called year of efficiency last year. It cut a lot of jobs. The comments from Mark Zuckerberg yesterday with that he's not looking to do any meaningful hiring this year doesn't mean they're not spending money. They are spending quite a lot on you know, things like the
metaverse and AI, but that doesn't necessarily mean more headcount. Ultimately, the actual core advertising business didn't do brilliantly but the overall earnings, you know, it was a significant beat on the top line, and this this cherry on the cake in the form of the dividend.
We did get a pretty strong forecast, though, didn't we When it comes to the ad market, that core business for Meta platforms, does that say something about whether they can pull off this pivot that, at least as far as the metaverse has gone for Meta hasn't really been rewarded so far from Mark Zuckerberg.
No, although the Reality Labs business, which is what they're doing, you know, that's where the virtuality headsets come from, did post its first quarter where it had more than a billion dollars in revenue. Ultimately, the question has been is the ads market resilient enough to be able to sustain the cash expense on all these new technologies, And the
message seems to be yes. It is a lot of the business appears to be coming from particularly Chinese direct to consumer websites names like she In for instance, that have actually been in some way has been taking chunks out of Amazon. But of course to find their customers, they are using platforms, many of Meta's platforms, in particular Instagram.
Let's talk about Amazon had a blowout holiday quarter. What's the big takeaway from those results for you?
Again, it's a similar story to Meta that they have been focusing on costs to a far greater extent than we've seen previously. They've cut fair number of jobs, but in things like Prime Video and Twitch, which is its game streaming service to you to watch games being live streamed. The numbers, but thirty five thousand jobs have cut obviously significant impact on the poor people who've lost their jobs.
But in the grand scheme of things, Apple, Amazon sorry, employs one and a half million people in full time part time roles, so you know, the numbers themselves pretty much met expectations. There was, you know, this online sales pretty much in line with expectations. Same with Amazon Web services.
The good thing for investors when you look at AWS is that there had been a little bit of concern that maybe it wasn't as strong in AI as Microsoft and Google, who have really been making good headway there doesn't seem to have had too detrimental an effect on the growth in AWS, So you know, that is a little certainly a bright spot for investors now.
It's so bright though for Apple investors, getting a bit of a dip even after returning to growth for the first time, and I think four quarters.
Yeah, it.
Beat estimates on the revenue line. Much of that was seemed to be to do with Europe, where it did far better than the street had been expecting. But China is a big disappointment. People knew that it was going to be bad. There's a certain upswell in patriotism there, particularly when it comes to buying mobile phones. We saw this or smartphones. We saw the six or seven years ago where Apple took a bit of a hit in China as local brands such as Oppo, Viva at the time,
Silmi and Huawei took share out of Apple. It looks like that is happening again. Analysts had been expecting about twenty three and a half billion dollars in sales in China. In the end it was less than twenty one billion. And the commentary looking forward doesn't seem all that bullish for that market either.
Just thirty seconds left Alex But could we see Apple get more love later on today when the vis Pro finally hits stores.
I think the thing about the Vision Pro is is really a statement piece that shows says Apple we are still leading technologically, right, it's not going to make any meaningful difference to their earnings in the near term, maybe in the media term. And the other piece to that, of course, is that Apple doesn't need it to be a success per se. It just needs it to do better than whatever Meta comes out with.
Right.
If Meta were to somehow own this space of virtuality augmented reality, that would be a big problem for Apple. But if none of them are successful, then ultimately it's not the end of the world for Tim Cook.
Bringing it right around to the competition, the fierce competition around wearables and AI in this big tech space. Thank you for this as always, Alex Webb of Bloomberg News.
Well, Nathan, he did mention AI, and a lot of the excitement around these megacap names has been driven by the promise of artificial intelligence, and there is no bigger chip maker in that space than Nvidia now, the semiconductor maker CEO Jensen Wong says demand for his company's products will be driven not just by its current customer is
in the Magnificent seven. He's pointing to companies and governments overseas andming to build and run their own homegrown AI infrastructure in media CEO Jensen Wog disgusted with the Bloomberg Technology co host and Ludlow, and let's listen into part of that conversation.
Now you have.
Seen India, Japan, and France, Canada, now Southeast Asia, Singapore speak up about the importance of investing in sovereign AI capabilities. It has become abundantly clear to each one of the countries that their natural resource, which is the data of their country, should be should be refined and produce intelligence of their country for their country. And that capability of refining the data of their country, of their country and turn it into their artificial intelligence is now possible in
quite a quite a democratized way. Almost every country should be able to do it for themselves. And and what's needed, of course is the technology and the know how of standing up AI infrastructure. And that's where we could be quite helpful to to various regions. And so I think that the the recognition of the importance of sovereign AI capabilities is now quite quite global.
Jensen, does that recognition and your ability to help extend to China, Well.
We're American company, and we have to comply with American policies, and whatever the rules and regulations are and the laws are,
will number one, comply with them. Work closely with the regulators and understand understand their intentions and their desires, work within those boundaries, and be able to create products for for the various countries that are involved, fully in compliant with the regulations that are that are in front of us, and beyond that once we once we comply, our goal are in the United States would love to see us be a successful country and in one of the pillars
of national security of successful industries, and it creates jobs and allows our country to stay ahead and technologically.
And so.
It is of a great interest of our nation that our American companies are successful around the world. And so once once we comply with the regulations, we'll do our best to serve the local markets. And we have full we have excellent communications with the administration.
How should we think about sovereign AI as a business line for you? Is there a way that we can understand how in videos work, even if it's building supercomputers like in the UK, for example, what proportion of your overall business that will represent.
The vast majority of the computing market has been the United States and to a small to a much longer, smaller degree, China. For the very first time, every industry would be every single country will become a computer industry, and every industry will become a technology industry. And so artificial intelligence or the automation uh the production at scale of intelligence matters to every single country. It matters to
every single industry. And so for the very first time, there's a there's a whole new computer market that is going to be uh in in every single country, in every single every single market. And UH it starts with it starts with, of course, uh the native computer industry itself. But you're seeing you're seeing a great adoption in healthcare, great adoption and logistics uh in, UH in transportation, of course, uh in manufacturing, in the large industries, the heavy industries.
UH For the very first time, because of Jariti AI, computers are going to be computer technology is going to impact literally every single industry in every single country.
This is Bloomberg day Break Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
Look for us on your podcast feed at six am Eastern each morning, on Apple, Spotify, and anywhere else you get your podcasts.
You can also listen live each morning starting at five am Wall Street Time, on Bloomberg eleven three to zero in New York, Bloomberg ninety nine to one in Washington, Bloomberg one oh six to one in Boston, and Bloomberg ninety sixty in San Francisco.
Our flagship New York station is also available on your Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.
Listen coast to coast on the Bloomberg Business app, SERIUSXM, the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager.
And I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day. Right You're on Bloomberg Daybreak