Transcripts For BLOOMBERG Whatd You Miss 20240713 : vimarsan

BLOOMBERG Whatd You Miss July 13, 2024

Rebound. We finally found some direction given that we are spending most of the day stuck in neutral. Its interesting we had a steady climb in the last area 40 minutes of trade today. Im thinking about bitcoin. Sharplybeen going down and it seems to be libre related. Zuckerberg testified before the House Finance panel yesterday. He said it libre would not be launched without government approval. That probably put the fear into frequent and cryptocurrency users everywhere. Heres the big uptrend earlier this year. After the announcement of labor, libra, were seeing that again today. It decline is now confirmed to go ballistic thousand after earlier those two points confirm each other it looks like bitcoin may continue to drop i am looking at shares of tesla. We know that they missed their delivery numbers. We didnt get the 100,000 mark. We got 95,000. It now we are going to wait the hell we can analysts want to see if we can get some headwind in china. The seem to think that market is saturated. That could shift the competition next from the model three to the highermargin products and make some gains over in china. That leads me to the next chart. This is on the gtv. Its all about the Gross Margins. Analysts are looking for some guidance here. Some id analysts are looking for Gross Margins in the long term for tesla. In blue you see its about 14. 5. The average analyst estimate looking for 18 growth margins. For will lead us to looking positive Free Cash Flow and profitability. I am taking a look at freeport which is rising as a sales dropped in the latest quarter. During the switch to underground mining. Hisceo is focusing attention on executing plans that would enable the company to increase old production by 70 . Its the worlds biggest independent copper producer and its hoping to boost copper production by 30 . The current copper prices are unsustainable. Freeport is also looking to reduce unit cash net costs by 25 and more than double operating cash. The protest have already cost them cause them to miss Sales Forecast but investors are watching to see how deeply the protests will impact the company in the Fourth Quarter. Scarlet thank you so much printed microsoft came out with results and we have a beat on the top line. For 11 are looking increase in fiscal firstquarter revenues and it came in at a 14 increase. Across the different business lines whether it is personal computing, intelligent cloud or productivity, it looks like it was a beat on all three businesses. Microsoft coming out ahead of the expectations when it comes to revenue also beating estimates when it comes to profit. The stock however is slightly lower here by 2 10 of 1 . A lot of it is priced in perhaps. Joe this is a company that has done phenomenally well. Now its green and notes read. Scarlet august are still with us. We looking at texas instrument and how there was a read through to the rest of the chip sector. Im going to interrupt. Outlookcutting its citing a lower china volume and warranty costs. Seems earningspershare they are cutting it slightly at the top end. They are saying adjusted earnings before interest and tax is at 7. 5 billion. That is where it comes also citing higher than planned incentives in north america to be able to sell those cars areas thats a dangerous precedent when youre looking at whattives because thats caused a downturn for the automakers. Consumers got hooked on all of that. Is the read through from a company like microsoft to the t of the tech sector, absolutely. I think youre talking about idiosyncratic stories and the macro headwinds. Texas instruments confirmed what we already knew that there is continued slowdown and uncertainty and lack of confidence that is driving lowerthanexpected demand. On the flipside, when you are talking about microsoft its an opportunity to talk about secular growth stories that we focus a lot on in our strategies. That is really focused on the fact that there is 2 trillion tickets spent on i. T. And less than 10 is spent on cloud computing. Where the world is going, its going into the cloud. Microsoft and a lot of other providers within that Space Security included will be longterm beneficiaries of that trend and any others that microsoft as part of. Ask can with look at the relative performance of a company like microsoft versus other fastgrowing Software Makers that may not be as profitable. You talk about the wework flew a thele weeks ago and investors to pay it for companies that merely have Growth Without profits. Microsoft has growth and lots of profits and a phenomenal balance sheet. His affect they are doing so of investorction appetite . Thats a great way to put it. Itvher way to look at it is which is your brought a software etf that finished positive however Software Names that are expensive, that started out a lot higher than eventually finished negative. I think the setup is exactly like you framed it. Theres going to be a lot more appetite for a name like microsoft that has more established reliable earning streams. Its not as high as other names in the space for sure. I read your mind because microsoft relative to the ig be, you can see it has been a Straight Line up. Especially from the middle of the summer. Obviously, people are liking financial characteristics of microsoft versus other software companies. Meanwhile, whats your take on the whole rotation trade . What counts as growth what counts as value . Will the shift continue as we hit near record highs . Personally speaking, i think style picking is a losers game. We are in the stock picking business thats what we do and no matter how you define a company, we believe that profitability matters over the longterm thats what drives prices. Think the opportunity right now is that there are so many great disruptions that are taking place across the sectors. Not just in traditional growth areas of the market but we talked about health care that has been a significant later. You have growth, valuation support that is trading at a complete discount to the market with incredible innovation pipeline. You have and to consumer and other areas. We are intrigued by these idiosyncratic stories that are shining through. Next do we even care about the fed on days like today . I truly think that the feds weakest easing that it has provided was appropriate and early june. Anything from their is possibly but theood for markets big delta for the fed in terms of helping has come and gone to the point where we really need them to rescue us because the brown stuff is hitting the fan. [laughter] stimulus is always a good thing. Global monetary stimulus which is exactly whats taking place right now, historically, it has been positive for the market over the longterm and over the last 12 months. Again, if you look at the earnings trajectory, this year is a foregone conclusion that Earnings Growth might eke out a small gain. We will have one of those years almost the inverse of what we had last year. It rest your head Phenomenal Growth and the markets were down. This year, you will not have Earnings Growth and it has been all multiple expansion but the market is up almost 20 . Next year i think you will have a nice balance of Earnings Growth and multiple where you should have for a nice total return opportunity for investors and a stock pickers that are looking for opportunities for the longterm. Interesting that we have so much positivity when it comes to 2020. Are people looking out that far at the moment . Are they focused on geopolitical risk . This is a time when you look out to 2020 most of all because the q3 earnings are when you filter on what your 20 earnings estimates are. I dont think people are looking at it the exact same way as well me say earnings estimates for 20 are coming in meaning people are getting more bearish. Of whatook at surveys Earnings Growth is actually expected for 2020, is closer to mid Single Digits already and has been for a while. All that means is the market is more expensive than we think but expectations are probably more muted. Thank you to our guest. That does it for the closing bell and for me. Romaine bostick is stepping in next four whatd you miss. Microsoft shares are down right now along with forward. We will break down the earnings further. This is bloomberg. Caroline were live from bloomberg headquarter in new york. Im caroline hyde. Bostick. Im romaine joe whatd you miss . Microsoft and ford are out with their numbers. Plus we are still waiting on numbers from tesla wondering if they are on the road to turn a profit for the last quarter of this year. Faces congress. Mark zuckerberg is still being questioned on capitol hill taking on some of the loudest critics of its crypto efforts. On the earnings watch, we just got four in microsoft. Here to break down microsoft and all of the tech earnings and stuff that is going on, we have a couple of guests. Obviously, microsoft has had a great run. The numbers look what they came in solidly above expectations though not extraordinarily so. What is your take . Like the cloud efforts look really good and that is continuing to grow. That pushes a lot to the bottom line which is important. That business is very profitable. When terms of revenue growth, they are growing very well for a Large Company and they have a lot of different segments to sasete with other enterprise products. Some of these segments are doing very well relative to their newer peers. The other thing the market likes a lot is the multiple is pretty low. You get a lot of the same as this trends as you get in the high multiple enterprise industry group. I want to break in with ebay coming out with its adjusted earningspershare. We are seeing also concluding the operating review step up. Was 20 17ing volume billion. It net revenue 2. 65 billion. From earningspershare perspective they are beating. Paypal also out. A lot of their business is tied to ebay not affecting it much areas they are above the estimate of . 52. The volume up. The estimate was for 176. See the shares moving up slightly after hours. Ther q4 revenue right at midpoint of estimates. Lets get back in terms of our conversation and where we are going in terms of perspectives. Lets get that Hedge Fund Manager out because when you look at the earnings from a better perspective, technology in particular, there is so much worry. We have facebook upon the hell then microsoft continuing to bang out cloud being unbeatable trend. What do you make of the individual companies . I am a macro guy. Let me get my copy out there. Caveat there. There has been a scarcity of growth in the economy. A potentialto see in that sense, manufacturing trough in q4, i would not be surprised to see some of the value stocks start to outperform will we start to see both the growth and the low volatility barbells be stretched as well as via valuations. We talk about this all the time. The possible rotation but you do think that some sort of macro trough is here and that will have consequences for the stoxx. We have all been waiting for this rotation. There have been a lot of false alarms along the way. For the first time, a lot of our leading indicators throughout the year have been suggesting a q4 trough in local global pmis. They diverge on the way up in 2017 because of the tax cut and down because of the trade war now. We would not be surprised to see that happening. My only issue on that take is that when youre looking in the momentum get right now, its not the industrials or the cyclicals. If that happens, it would only play into whats in the momentum bucket right now which is utilities, real estate, staples and some Technology Growth companies. It not the high multiple ones. I dont know where the rotation thing, what are you rotating into . Is it the deep value stuff . The devalue has not worked as a factor since the late 80s. On a longerterm scale. The whole narrative im not quite clear on. You talk about the deep value. Its trading at a 29th multiple so what are you going into even if they are providing, the spectacular growth what do you buy into at this point that is going to constitute a growth multiple at the current price . Across the entire market . Asked just in general. Basically board nothing. Pursuetimates coming to asleep right now. Where is the revenue driver . There isnt one right now. You have macro headwinds which i agree with. We are not seeing the fundamental push that you would want to see to get multiples growing on a multiple basis. One areas that has gotten some momentum recently in the green again today was the financials. Is this a sustainable trend that would be part of a q4 trough we or seet could go higher a steeper curve and will momentum for the financials . I think so. It depends on if we get the manufacturing trough. We have seen a barbell. Is been both of the gross the more cyclical stuff one of the reasons why it has been so sensitive to china. That is presumably what would be an inflection. We wouldnt be surprised to see one last cycle were financials outperform and thats why european volumes are driving right now. Right stuff. Plenty more to come. This is bloomberg. We want to recap the earnings we have gotten over the past few minutes. Ebay, there are three q numbers came in above estimates but they give guidance for the Fourth Quarter 73 to . 76 was the range. That appears to be weighing of it on the shares. Notably, paypal has been in the other direction outperforming. The estimate was . 52. Were also seeing the Fourth Quarter look ahead. Nice. Anyone to 83. Going back to microsoft again, the stock a little bit lower after hours but the numbers generally quite solid. Of 32. 22 billion. Really solid cloud numbers. Finally, we have ford out with earnings. They are hauling. A lot of the issues seem to be idiosyncratic issues with the rollout of the Ford Explorer as far as higher warranty costs. They did want to talk about declining sales in china. Us, both of our guests. When you look at the landscape here and you specifically look at the tech side of the equation, we were looking for more leadership from a lot of the software companies. We have gotten only a couple of major earnings. What are you expecting out of them as we get into the earnings . Asked i like to read through on microsoft. The salesforce summaries were also good. If those two companies continued to about did numbers, i think you will see the smaller ones to put up great numbers as well. What are investors going to do to the multiple . Thinking about what just happened to wework, i want to share a short story. A couple of weeks ago i was in the office and i asked a question, if i walked in here and said five years from now the company i am building is going to do 1 billion in revenue. I guarantee it will never make a dollar of profit. Would you invest in a company . He looks at me and he says yes probably. I probably would also. The question is at what point does this stop being a game of passive along . That inserted to and now. You mentioned china having what more boost. We saw caterpillar turn it around. Does caterpillar or china have the juice to lift the Global Economy . It will be not long it will be strong but i think one last cycle is left before we enter the regime where china is pushing policy wise. Thats when it will start to emerge with the macro headwinds. I think the impact of easing in the last 12 to 18 months is going to be sufficient for one last used and if you look around the positioning charts, we are quite stressed. I wish we had more time. This is bloomberg. Hey. Hey. You must be stevens phone. Now you can take control of your home wifi and get a notification the instant someone new joins your network. Only with xfinity xfi. Download the xfi app today. Im Mark Crumpton the first word news. About two dozen Republican House members today occupied a secure hearing at the u. S. Capitol. They sought to delay a scheduled deposition related to the impeachment investigation of president trump. President trump reportedly had a bit knowledge and support at the protest. What is adam schiff trying to hide . That is a question so many people have. So many people in the press schiff ise areas adam trying to impeach a president of the united states. Behind closed doors. It literally trying to overturn the results of the 2016 election. Once they enter the hearing, congressman schiff the Health Intelligence chairman is said to the left with the witness. Emmanuel macron is set to force an emergency eu summit. He is insisting that any delay to the october 31 brexit deadline last no longer than 15 days. Favor tusk is said to pushing the deadline back by three months to help avoid a no deal brexit. The attorney general in colorado has released a report detailing his pattern of abuse of more children by Roman Catholic priests. The report says most of the abuse took place in the 1960s and 70s. Its unimaginable. Wasmost painful part for me that we have had stories told of the victims coming forward and they were not supported. We cannot make up for that. In a letter to catholics today, the denver archbishop said he will do everything he can to ensure the widespread abuse doesnt happen again and follow a series of recommendations to enhance reporting and church accountability. Investigation to the diocese could not rule out possibility that those currently serving have been abused of abusing children. Global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Bowing has a plan to work through its recent crisis. Shares are jumping after it to the 737a boost max 8. Meanwhile, caterpillar is announcing plans to slow down. Our guest is here to talk about it. It lets talk about caterpillar first areas we got the idea that some of their customers were holding off on their purchases because they didnt have the kind of visibility of what the trade outlook would bill and the the end of the Economic Outlook would be. I think about csx and ups also talking about the impact uncertainty is having on their business. They see pockets of strength in the economy but the concerns about the

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