Mind. It is the s p value index. It put on a record high today. That comes as a divergence to the growth index. Rotation into valueadded growth is still in play. , tribeca Trading Group it had another component. Back to you. I know taylor riggs is looking at the numbers. 4. 23. Uarter eps, that would be amiss. Of 70uarter net sales billion, better than expected. Part of the business, billion, amiss on that part of the business. That is the Fastest Growing part of its business. 80 billion to 86. 5 billion dollars for this quarter, analysts looking for 87. 2 billion. The stock is falling in after hours trading. Lets have a quick look at intel. At 71 billionue at 71 your revenue billion, beating market expectations. This is a company worried about market shelter share, now perhaps benefiting from a rebound in the third quarter. Texashad that instruments print a couple of days ago, also not bad. Lets get back to taylor. Take it away. Luke. . Our perspective consumert where the and Business Sentiment are . We going to get any reflection of that . That is one thing highlighted, this idea that if you are saying the consumer is strong and there is no recession risk, and yet industrial is not doing too well, at a certain point, that filters into all points of business and should also hit software. Been pretty resilient. Amazon down 6 . They have never been interested in playing the street game of guiding. What is your take away on that and the earnings we are seeing after the bell right now . Unfortunately i dont follow individual companies. In the world that has been more ,riven by macro, the past year winners and losers have been defined by the sector. You mentioned outperforming growth for the first time in a while. To see people focusing on profits and differentiating between what is winning and losing based on underlining fundamentals. Think end of the day, i it is better. I moved higher recently. With regards to mike wilsons comment, uncertainty has driven Business Owners to sit on the sidelines. They need the catalyst for that to happen. Reservethe federal deliberating in a week from now. They are looking it earnings, and im sure they are, what kind of conclusion do you think they would come to . A lot of stale news, that the dollar has been a pain. I think they would be theyrtable the reasons have had to prepare a rate cut or not pushback against the market, those are all pretty price, expected, and the current state of play. How does that mean leave the dollar . The dollar has remained resolutely higher. At what point will we start to see weakness . As the Global Economy improves. Perceived as a better economy recently, but global weakness is leaking into the u. S. If the Global Environment moves higher and stabilized, that is when the dollar will weaken. I do think the fed will cut next week. The fed is lessening the uncertainty while the administration is raising the uncertainty. If the president starts lessening the uncertainty, that is where you would get a market and economic spring moving forward. 6. 5 come the lowest level since march. Talk to us about rotation. Falling. Have amazon meanwhile, other sectors of the ,arket not very popular financials health care, energy, is there a potential for that to continue . This speaks to how powerful rotation has been in the market. Clearly there is a market regulating mechanism. Energy, xop, the etf, now at a financial crisis low. People expressing. Ptimism throughput calls people are trying to put in a floor for energy. When you think about all the things that have rallied, yields moving higher, Global Growth ebbing a little, banks doing better, you would think that energy rally is a big part of it, and so far it hasnt been. How do you look at the Energy Companies and how much do you use oil prices as an indicator for where they should go . Sure, Oil Prices Drive a lot of what happens. It all comes back to whether or not you think we are headed for a session a recession or reflation. Things have been moving in one direction or pretty much the entire last year. If the yield curve does steepen again and Economic Growth follows, you will see a big change in leadership. Sales,on this is on its how is the theory of profit versus growth sitting for you at the moment . I knowt to hooked that eps didnt look too pretty for the third quarter, but is it a story that growth really matters, but for Certain Companies . Sales still below analyst estimates for q4, not surprised. The fact the forecast for this quarter is not great, and that includes the holiday forecast, might be concerning given that amazon is the first one saying that. They still sell stuff. We want to thank everyone who joins us here. Thank you both. That does it for the closing bell. At amazonsl look latest Earnings Report in whatd you miss . This is bloomberg. Caroline live from new york, im caroline hyde. Joe i am joe weisenthal. Zero. 2 on are up the s p 500. Joe whatd you miss . Fallsne aws for amazon short. China says they are willing to buy 20 billion worth of Agricultural Products in just a year. Mario draghi says goodbye to the ecb. Caroline more earnings. Visa, quarter numbers for 6. 1 billion, in line with the average estimate. 1. 34 for eps. Adjusted earningspershare ahead of expectations. Revenue just in line. They are a bit shy on their Fourth Quarter crossborder volumes. Lets return to amazon. Amazon earnings just breaking. For more, we are joined by ed ludlow. Your take in terms of a hit to profitability, but revenue seems to be the worry for the next quarter. More than 8 n after hours. The investment focus was the bottom line. Three point 2 billion, ahead of estimates of 3 billion, on net sales of 70 billion. There has been this rampup and spending largely focused on oneday delivery with regards to amazon prime. Look at the Fourth Quarter, net to 86. 5 80 billion billion, well below the estimate. That seems to be what the market is trading on today. Share,re, earnings per 4. 23, below the estimate of 4. 59. Aws is a saving grace, the Retail Business disappointing. With the great recap, ed ludlow. I want to go out this to seattle and talk more about these numbers. K q4nt to start with the wea forecast on sales. This reflect the big retail get ittors need to together, show momentum, go into amazons turf, and im thinking about walmart and target. It could be that. The big thing to think about is amazon has pushed this next day delivery pledge. The reason is if we can deliver in one day, a lot of people are thinking about ordering, but they dont. What we are seeing with this forecast is whatever additional Growth Investors were expecting is not coming, at least not in the holiday quarter. That isf the things concerning is you have this slowdown in aws come still but we saw these slowdown numbers come from microsoft and other cloud companies. What is the future for aws . Is asont know if that big of an alarm as the overall slowdown. Business and still growing in the 30 range. The big take away is an investing in next day delivery is big. They had a missed next quarter because of spending on delivery. The revenues arent coming in immediately. Aboutf bezos talking prime and investment in one day delivery. He said it is a big investment in the right longterm decision for customers. Rightill it be the longterm decision for investors. Next year 2020 is when they can pull back and it will start to feel growth of revenue and the bottom line . That is a great question. Just look at history. Jeff bezos has no problem making investors wait if he thinks it is the right choice for the longterm. He does not run his business quarter to quarter. He likes to run it in decades. When will that growth materialize . Who knows . You brought up a good point about the competitive pressures, so when this bears fruit, that will be the thing that investors will be needling amazon about on a call coming up in a little bit. Joe you have followed amazon for a long time. Sometimes it soars, sometimes it tanks. It is not unusual. It has had some pretty big drawdowns. Is there anything different about this one, or is this amazon just being extremely volatile . It is volatile. People are always trying to determine the pattern. What is different here is investors had been accustomed to growing profitability for several quarters in a row, and the question into this quarter was last quarter broke from this stride. Quarters in atwo row of big spending. When will the spending stop . Is this an ongoing exercise and bigger spending to achieve a longterm goal . I think investors are moving closer to longterm suspending after todays report. Take a quicks recap across the board. You can see amazon shares down 8. 8 . Visa, Fourth Quarter numbers, then you had intel guiding investors higher, up 8 . Proof point, shares had rallied, now giving it all back after providing epsin outlook below the average estimate. From new york, this is bloomberg. Romaine mario draghi with the downbeat analysis of the economy which is weeks after releasing more stimulus to counter the slowing. Data confirmsg our previous assessment of a protracted weakness in the euro area growth and dynamics. Pressuresisks and that are muted. Billne joining us now is lee of the milken institute, chief economist there. Welcome. I dont think anyone can deny that mario draghi help to stabilize the euro area economies the first few years he was there. There have been questions about how far he pushed monetary policy, and whether that was good for the area in the long term. Do you think that is so . Absolutely. He singlehandedly saved the doo area with four words, what it takes. That was the best piece of central banking done this century. Left is we had the area and doldrums, inflation, and the. Oncern about debt crisis that is the legacy he is leaving to Christine Lagarde. Joe some would argue hes tried to make that go down easier. , the concepteeting of multiple rates, and perhaps this provides a way out. Is this a tool that with further massaging and expanding could be effective . Those attempts are really to refine that tool of targeting negative rates and not hurting the system. Direct, they tried to money and credits to smaller businesses in smaller banks, but the Destructive Force of negative rates ruins investment opportunities. The abilityer that of credit markets to do their down if weto break have these negative rates for a prolonged time. The area will be in a more doldrums than the last several decades, barely beyond 1 or 2 growth rate. Caroline this has really been amplified as fiscal policies come into play. Typically the germans. Do you think we will start to see fiscal supporting monetary in europe . Your question points to the job Christine Lagarde has to face. She has to become more of a politician than central banker. She has to convince authorities to put on alternate policies. I think structural policy is more important than fiscal policy. Are nowtive rates feeding into the assessment that the marginal cost of capital is negative. That means why bother investing . That is the kind of depression have expectations we dont want to see set in. Caroline always great to have you. Thank you. Earnings coming through this afternoon. 5. 6 . El, up, micron getting a lift from intel. Off by 7. 6 , as they fail to live up to expectations when it comes to their holiday quarter. This is bloomberg. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. British Prime MinisterBoris Johnson has called for a snap election on december 12. He says it is the only way to fully resolve brexit and ended nightmare for the country. He says the election is a condition for the British Government to have more time to examine the current deal. The reason for having that deadline is otherwise the people of this country will believe that parliament will really do it by that deadline. Years already,. 5 so lets get it done. Corbyn says jeremy he wont agree to an early election until a no deal brexit is ruled out. The European Union is expected to grant an extension on friday that would push the deadline back to january 31. Members of the public and Congressional Colleagues from both sides of the aisle are paying their respects to Elijah Cummings as his body lies in state outside the House Chamber where he served for 23 years. Cummings, son of sharecroppers, master of the house, it is my official, personal, and sad, to welcome chairman Elijah Cummings and all who love him to the celebration of his life. Chairman of the House Oversight and reform committee, he is the first africanamerican lawmaker to lie in state at the capital, and only the third africanamerican to lie in under there. A wake and funeral are planned for friday in baltimore. Former president S Barack Obama and bill clinton are among the scheduled speakers. More than two months before the phone call that lunch that impeachment inquiry into president trump, the ukrainian president was reportedly worried about pressure from the u. S. President to investigate his democratic rival joe biden. Volodymyr zelensky gathered a small group of advisers and made to discuss his Nations Energy needs. Instead they spoke for hours about how to navigate white house insistence for a probe and how to avoid becoming entangled in the american elections. President pleaded with protesters who blocked the main roads and paralyze the nation for days. He expressed a willingness to meet with demonstrators. He is urging them to back Economic Reforms proposed by the Prime Minister as First Step Towards saving the country from economic collapse. Global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in over than 120 countries. I am mark crumpton. This is bloomberg. Back to earnings. Intel just posting. We are joined by now by Bloomberg Intelligence for reaction. A decent beat. They raised guidance for the current quarter. What is behind this . I think Data Center Spending his back, combined with low expectations for intel. That it will be a share gainer against the segment, but it will not happen overnight. This is a rising tide, so it lifts with both boats. Joe big picture, the Data Center Spending means this capital cycle, this Capital Investment cycle, cloud or other things, it is not over. Of the, in fact, one things that has happened is a bifurcation in spending between fortune 500 companies and cloud spending in the cloud spenders. This group is very diversified. Concentrated and they tend to spend lumpy spenders. It looks like facebook, google, and whent t are back, that happens, they tend to spend for multiple quarters. Joe overall fortune 500 Capital Spending has pulled back a little bit . This area it might be seeing some weakness, but that area tends to be lumpy, and that area is extremely diversified, so you have slightly different cycles, but this area is bigger for intel. Caroline they say they expect a fourth record year in a row. How much were they helped by people buying more computers . By businesssiness perspective, and we have breakdowns of expectations, the consumer segment was 9. 7 billion. We were expecting 9. 6 billion, a slight beat, but the Data Center Group was 5. 24, and we were expecting 6. 4. The other segment, the memory group as well, give or take were in line, a most the strength came from the Data Center Group. Romaine some headlines crossing. , the pcs still strong unit was hit by a shortage of supply, not competition. What do you make of that . There have been some issues where they have struggled to get product through the door. This is a perishable business. If you dont have product, they will go to the competition. You have to have product across this price spectrum. Corporate pc buying who want to switch from windows 7 to windows 10, there is a lot of that move going on. If you dont move, you will have a virus attack. Joe big picture, with the other chipmakers, texas instruments, lam research, is this still a cyclical story, or does this give a read on the cycle . We have had some mixed data points for sure. We have certainly seen weakness. All those industrials are weak. , the automobile business was weak, but there was offset from other segments, so a mixed bag. , butnk data Center Strong other counterpoints are weak. Joe we appreciate your analysis. Bob swan onatch bloomberg daybreak asia tonight at 8 30 p. M. New york time. To amazonshift back to recap thirdquarter earnings. The company is tumbling after hours. It was down 8. 5 at some point. It has bounced back a little bit. The company reporting it is on the weak q4 outlook are sales range seems to be the thing, some worries about that big holiday quarter. Theline no comment on question about regulatory matters on the call right now. Employs 750,000 people. They have always managed to rebound. It is still the 800 pound gorilla. Here is a number. Amazon estimates oneday shipping costs of 1. 6 billion in q4. If i have to pay shipping again, im going to be upset. Im not paying for two days. Caroline i have to say it is easy. Romaine a lot of analysts were questioning the integration of whole foods and what amazon got out of it. Data andst promise for synergies, where is that . Maybe that will come up in the call. Still that stand alexas. Re they sell have covered all the bases. Lets check in on some other earnings. L higher, a lot of folks looking at that 71 billion revenue number well above what animus analysts were looking for. Juniper, expectations were low. Proof points selling off a little bit. Universal Health Services missing on several main metrics, down 5. 7 . From new york, and only new york, this is bloomberg. A to beou consider libr money . I consider it a Payment System. Me having money in Wells Fargo Bank . Thatu can think about it way. We are not applying for a bank charter. That is the problem, the competitiveness angle in china is in National Security issue. In china, they kicked off this Publicprivate Partnership with some of their Biggest Companies to race to build a system like this quickly. Towill it be possible conduct anonymous transactions a, will it allow anonymous transactions . It is an open question. Argue a capitalist or socialist . Re you a capitalist or socialist . Definitely a capitalist. Im not sure we have learned anything new here. Joe that was Mark Zuckerberg fending off a long list of grievances by congress. Welcome our next guest from columbia law school, the director for the center on legal transformation of columbia. You have been following the story, written about it, testified yourself. You have been critical about the libra project. What is your number one concern . That we basically have a privately sponsored, forprofit currency at the global level that is not safeguarded, and might increase risks. Argument you are hearing from people pushing back is either it is not needed, or if it is needed, the Central Banks should be in charge of it. There is a point that Something Like libra is needed. I think they have a point that our current Payment System is outdated, particularly in the united states, that we could have a system that is more efficient and could make transactions cheaper from more people. We should update our system, and the push is welcome. The question is who should , whether private forces or a Payment System and the money transferred through that Payment System is a public good that should be started by other agents. Caroline will the u. S. Central embraceu. S. Regulators it from the public perspective . They have not yet. Have thepanies would equal states. It wouldnt be facebook only. Ofwe not need some sort platform that would help bring such payments about . Would the adoption of the digitalized delicate into the ecosystem is quickly if it was not through a platform such as facebook . This is what facebook is offering, two point 7 billion users around the globe, so we could scale this at a level that know National Central bank could do. Facebook is one of many. Startt think libra could without facebook being a part of it. That tells you it is not one overly among equals. Attemptsmagine all the to get to regulatory hurdles are not being paid for by the libra association, but facebook. Romaine lets talk about how it fits into your own prior work. Joe you have written this book recently, the code of capital. Muchrgument is there is so inequality because governments define what can be used as capital, collateral, and all those are legal choices, not handed down from a tablet on a mountain. When you look at the prospects of a company as large and powerful as facebook issuing its own currency, does that fit into a general pattern you have seen in terms of who gets to define and what is capital and money . Having written this book made me alert to Something Like libra, but what i do describe in the book is that the state of our legal institutions are being used and put together by private attorneys on behalf of private clients. , andare using state law private parties can avail themselves of power to organize their horizontal affairs. In the digital revolution, there is the possibility of having power by controlling the digital code, and that private players can use it in ways that create different power relations in the markets, social relations, and politics as well. Sense ofou have any how this will be reconciled . Romaine you could argue that so many democracies are not bound together by ideology, but by a control of money in their own currency, and when you introduce a libra coin, or you allow bitcoin to flourish, doesnt that undermine the basis . It is a game changer. If it comes in the form that was designed, it would challenge at some level the monetary sovereignty, a critical part of states do, and that some have both private money and state money. Private money is with the banks have been doing, and you regulate the banks, and the shadow Banking System is seeing how much money can be created outside the banks, and now we can create private money outside this shadow Banking System in the Digital World as well. A perspectives that facebook continues to draw upon to reassert itself. If you go to china, you cannot buy a coffee unless you are embroiled within tencent, alibaba, baidu, one of the vertical juggernauts. Ow are they already owning the space . Commit already own china and theyre trying to go beyond china, but there lockedin with the chinas government. Chinese government. It is an interesting hybrid between government and private directed by the central powers in china. Libra is saying lets do a private alternative, but it will also be a monopoly. If it will be successful, it a monopoly. Look at facebook. You cant fire him. You cant take over. It is different. It is alsohina, but not a democratic entity. Caroline thank you so much for giving us some of your time today. Sticking with washington, Kevin Cirilli set him with the u. S. Secretary of interior date to discuss deregulation from a federal lands, and the future of wind. It is having a huge impact. When you look at what the president has done with his vision of clear and common sense , inlation deregulating areas like interior, we are changing the amount of time it takes to get work done. The amount of effort that needs to go into deciding whether a project merits approval or not, and as a result of that, we are having tremendous results for the american people. Today, i am excited to announce we will be rolling out oil and ,as revenues from federal lands and those revenues will today, from fym federal landsn have nearly doubled what they were in fiscal year 2016. Your critics would raise concerns about the environment as it relates to fracking and whatnot, but you are saying these policies have enabled the government to make investments in the states, in the states decide what to do with those revenues. That is what people need to recognize, development on means a portion of that money, virtually half cooked, goes back to every state , so states like new mexico, have seen over 1 billion this year from activities on federal oil and gasead to leasing opportunities. Those states take those moneys and use them for education, roads, law enforcement, very Important Services they are able to provide for their citizenry based on the development of federal lands. You have some big decisions, eared the Vineyard Wind decisions coming up. The Vineyard Wind project . We have a process we go through for all our decisions. Where we are with a project like ,hat is we are analyzing offshore wind is a space where we see tremendous potential, interest, and growth by governors, industry, and others, so we have to look forward at the foreseeable development, and in doing that, the Development Future has changed little bit positively between win that project started in today. Toa result of that, we need do our Environmental Impact review in a way that accommodates future expectations. Romaine you were just listening to Kevin Cirilli speaking with the u. S. Secretary of the interior. From new york, this is bloomberg. Dispatchedence was to play the china bad cop. The president spoke in washington about u. S. Policy towards beijing and made it clear that trade is not the only issue. Sarah mcgregor joins us from los angeles with the latest. It did not seem like major news that would affect the trade negotiations or the trade front, but what was the real purpose behind the speech . Absolutely. There were no big announcements about a new crackdown on china over human rights or some action the u. S. Is going to take, but it comes at a delicate time as the two countries are trying to come together with this first phase trade deal in the next couple of weeks. President , it is interesting he would come out and criticize the human rights record, something sensitive for china, and something that looks like interference from the u. S. Side then something productive coming out of it. Thing wasnteresting singling out u. S. Companies, nike, the nba. What was he signaling with that . And tweets the nba from executives criticizing china, supporting the hong kong protests. Athink he was trying to make point for u. S. Companies to may be get involved in this situation, let the u. S. Get this trade deal in order. Theline Sarah Mcgregor to point, as ever. We thank you. That is all for whatd you miss . Joe have a great evening. This is bloomberg. Taylor im taylor riggs in san francisco, this is bloomberg technology. Amazon profits fall for the first time in two years. This, as the Company Drops hundreds of millions of dollars in expanded free oneday delivery program. Announces it will go ahead with the production of