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. I