Earnings amid an uncertain economy and we will break down the results and a look at why jd. Com is bucking the slowdown. Caroline crypto 6 Bitcoin Custodian bitgo the cl will join us later to discuss how and why they did it. Lets check in the markets and there is a slowdown on the border markets. The nasdaq is slowing down. When you look the best the nasdaq 100, we are seeing nervousness encapsulating the story in china, the macro implications of what that means for the u. S. And investor sentiment. The twoyear yield dipping down. We are seeing 4. 94 on the twoyear. The pound, this is the inflation anxiety gripping through the u. S. Inflation is hot in the u. K. 6. 9 . The pound is the outperformer when you look at the key core currencies. One key currency, bitcoin up 3 10 of a percent. The language at this level we languish at this level. Ed we will have a big emphasis on china on the shelf. Ed on this show. Jd. Com beat expectations. The stock, u. S. Listed shares down 3. 6 . We will go to the Bloomberg Team that covered earnings later in the snow show. China, tesla cutting prices in china overnight, model s and model x cut. Third day in a row where we had news by tesla doing something in writing. Intel is walking away and abandoning id a deal to buy tower semi. The concern is the timeline. It goes to the core of their foundry business and we will talk to one of our guests about what this means for the foundry side. You can see the impact of the market, tower semi down 10 , intel by down by 2. 7 . Caroline lets get to one of our reporters. It was a scoop but maybe the market saw it coming because tower at sold offer months. Was about catching the finale and even when we put up the story, we were wondering what could happen if there is a hail mary. Chinas walked out watchdog update their website at all hours and there is possible a possibility that they could update a deal but once we found it wasnt happening, we updated it. Ed walk us through the timeline of the deal because there were multiple jurisdictional or regulatory challenges. Intel seemed confident when they announced the deal that it will get it done by the deadline. They announced it in february 2022 so that was 18 months ago. It have been dragging on. It had been dragging on. China is often the last revelatory hurdle you see in transactions. They have jurisdiction over so many deals that have connection to china so anything with semi conductors his heart its hard to touch. It is not going away. Any deal in semiconductors could face similar risks. We know there is a concern about ai and chips when it comes to geopolitics, does it all come down to geopolitics . Is there anything that intel could see a Silver Lining in . Anything from chips, electric vehicles in i, it is sensitive electric vehicles and ai, it is sensitive. Any deal in the space will face scrutiny. Other deals like clothing are probably safe are for now. Anything Like Technology will be a rough road in traders and traders will not like what happens. Ed thank you very much. I want to get comments from the intel ceo. He said we are executing well on a road map to be date to regain transistor performance and power performance leadership by 2025, Building Momentum in customers with customers and the broader ecosystem and investing to deliver geography youre roughly diverse and resilient manufacturing footprint the world needs. That is the story, how does this impact intels big plan to become the foundry choice . We will talk about that. You have to look at the situation for intel and say there is a Silver Lining, there is nothing against intel partnering with tower moving forward. The prophets in the profits in the foundry in the leading edge part in the leading edge foundry are in the leading edge. China will be complex and as long as we put our micro regressions aggressions to maintain our leadership and pushed china, deals like this will never make it through. Ed exactly so. Caroline would tell me they are super confident that intel will become the leader in manufacturing. One way to get there organically and the other thing is shopping and shopping seems to be off the table. Ed is shopping off the table caroline it shopping off the table in the u. S. As well . Is shopping off the table in the u. S. As well . China is going to be a problem for the u. S. For some time and the u. S. Is gaining leadership but the moves it has made with asml, the leading edge process capabilities have put china on the defense and they have used some of the different components for semi conductors to hold against the u. S. I see the move that is largely going to be ok with intel. You can take Something Like a global foundries deal, at least a consideration of that because global foundries exited significant participation in china so there is another opportunity there and if someone wanted to go shopping, that can happen without needing chinas approval. I think intel will win the markets, they are going to adore intel more if intel can win at the leading edge. The lagging edge has caused issues in the supply chain but i am not as negative on this. The right partnership could end up being a winner. Ed the benchmark intel sets itself with is ts. Mc. Daniel the acquisition of tolerance is not going to immediately make intel on the same plane as tsmc as a global foundry. It was a step forward and gave them a complete set of capabilities. I have spoken to someone who said it is a multistep process, the Company Providing more resiliency option for Companies Like nvidia and caulked call, qualcomm. I think the immediate opportunities for intel to be of foundry to lessen the u. S. And parts of the worlds dependency on asia and tscm to compete tsmc to compete. If it can win more on the leading edge, that is where the opportunity is, it can be a number two. It is a long way to be on tsmcs level. Caroline you say there is a partnership and deals can be done but can they be done in internally in the u. S . The doj looks at some of these deals, having said that, a lot of deals have been able to be completed, we have seen china stop dt big deals in the past. We are seeing the u. S. Go through a high amount of scrutiny. If you start, stop m a, you could be putting at risk the United States leadership. The chip and science act, the purpose of the act was to make sure we are defending the Global Leadership of the u. S. In semis. Ed we have been tracking 13fs in the deadline. Your reaction to that . Daniel intel has been under continuous pressure. I havent had a chance to review the positions and the changes in the positions. Intel has had a nice run and it showed promise in had a better order but the outlook, the complexity and chinas economy has makes technology plays risky in the near term. Caroline we keep an eye on that stock. We think you for your analysis we thank you for your analysis. We are watching shares of samsung, the adls at the moment by more than half in the Second Quarter and it is selling out of this because it wants to use the proceeds of of that sales to invest in itself in chip production miles. Chip quite the theme. Ed coming up, another theme on the show, shiny china, recognize Rising Economic turbulence in china. This is bloomberg. Their team of independent tax attorneys will work with your cpa to determine if your company is eligible. [whip sound] take the first step to see if your Small Business qualifies. I did have hearing aids from another company. I was just frustrated. I almost gave up. With miracle ear its all about service. Theyre personable. Theyre friendly. Im very happy with them. We provide you with a free lifetime of aftercare. Meaning free checkups, cleanings, and adjustments. I see someone new. Someone happy. Its really made a difference. Call miracle ear at 1800miracle and schedule your free, no obligation hearing evaluation today. Caroline we have to talk china because you know the Rising Economic turbulence in the country and it is weakening consumer demand. We give an eye on tencent, they reported revenue that missed estimates. All of this as we see more chinese tech firms coming out and we want to see who is winning and losing. We want to get to these people in new york. Henry, i go to you first because the details and nuances within tencent, where was it outperforming and where was it lackluster . Two elements are in play, one is advertising and tencent has been seen gains in advertising because it is pushing through its tiktok like stream. The disappointing part is in gaming. When you talk about gaming, it is about domestic games. Most gaming revenues at home and abroad are lower than analyst commit so tencent was saying this is a temporary phenomenon and this revenue should rebound in the third quarter. They are less pushy about in game commercialization for gamers and players during the quarter to take the game longevity. It remains to be seen for the third quarter. Ed the company level, jd was a different story, sales beat estimates. You look at the adrs, the u. S. Listed shales are of both, they are markedly lower. Investors are concerned about the strength of the Chinese Consumer and economy. Tencent is one of the biggest humvees in china and the business folios spans finance and entertainment and because it is seen as a barometer of china, what does it tell us . It is a be careful of what you wish war situation because the beginning of the year, everyone was hoping for the big rebound to spur Global Growth but when that didnt happen, investors said we should wish for a little weakness so the Chinese Central Bank could inject liquidity but we have data showing weakness in china and investors are not liking that. These are really the academy of the chinese growth in general which has been the abu dhabi of the chinese growth in general which has de pinzimini the epitome of chinese growth in general with hat which has been lackluster. Henry jd. Com beating estimates and expectations here. The expectations have been low so far because the consumers, the retail sales have been doing well out of china have not been doing well after out of china. Jd. Coms retail merchant margin was below estimate and that is why jd stock is trading lower in the u. S. So the concern is compete his competition is moving higher because alibaba is pushing its market share. It is losing market share to other players like katie jd. It is going heavy, its value for money, investing campaign so that is the concern here so the margin is disappointing. Caroline isabel, we aint done yet. There will be telltale signs, is a, other companies the companies are giving earnings and what more can we glean . Isabelle people will look at other Tech Companies because there are many big players in china. If you think this doesnt matter in other economies, you want to again because we have Bloomberg Economy says if china hundred it may to the fed to cut rates sooner than expected so it is china is a big player, the secondlargest economy and whatever happens in the nation is something the whole world watches. Ed wow. We covered a lot of ground. Or to come this week, more to come this week. Why Recruitment Companies are pulling back their annual guidance because the labor market is squeezing its client plus a ceo is joining us. The ecommerce story continues. This is bloomberg. This is bloomberg. You got this. Lets go. Gobble gobble. Ive seen bigger legs on a turkey rude. Who are you . Im an investor in a fund that helps advance innovative sports tech like this Smart Fitness mirror. Im also mr. Leg day. 1989 anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq100 innovations. I go through a lot of pants. Before investing carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com. Ed it is time for work shifting where we look at the changing landscape of the labor market amid advances in technology. Recruitment companies are abandoning annual earnings forecast amid a squeeze that has been spread by softening labor market in which employers are playing for are paying for fewer job listings. The owner of indeed and glassdoor warned it was not sure yet if the growth would return despite expecting 500 million of annual cost savings after chopping 2400 jobs including 15 of indeeds workforce. The gap between operations in china and india, foxconn will begin production for the iphone 15 in india. Sources say the factory will begin making the shipping the devices after weeks only weeks after building in china. That delay was drastically reduced last year and apple produced 7 of its i iphones in india at the end of marx march and amazon is imposing a new fee on merchants that dont use its u. S. Government is poised to follow an antitrust lawsuit against the ecommerce giant . Thousands of thirdparty sellers who ship products themselves will start paying 2 fee on each sale starting in october . October. Caroline lets get into commerce because the news, the retail sales coming in strong today, we have earnings from target, profit gains for the company and we are trying to understand where is the consumer and how is it shifting and spending in this environment. We have an expert, rachel tipograph, founder and ceo of the platform ecommerce platform mikmak. Are you surprised by the resilient resilience of the u. S. Consumer . I am not because americans love to spend and dont like to save and what we are seeing is exactly that. To quote one of my dear friends, elite a lead analyst at forrester, what we are seeing in the market is the consumers still have half 1 trillion from the pandemic to spend through and they are doing that despite the brands and retailers raising prices so what we are seeing an 80s earnings seeing in the earnings, retails retailers are having an credit incredible margins . Caroline they look nervous looking forward. What are ecommerce pay are seeing and how much are we spending our wallet online or experientially . Target is nervous for all the right reasons and what we are seeing is consumers are spending on essentials. They are spending on groceries, alcohol, personal care, pet care, beauty. They are not spending on nonessentials so fashion, consumer electronics. That discretionary spend is going towards travel and dining out so for target, if they want to be optimistic about their future, the big question they need to answer is how are they going to beat walmart at grocery . That is the name of the game, a focus on grocery to drive the habitual wiki weekly shopping behavior. Ed i spotted something on that note that is relevant. I was going through earnings on the transmit on the transcript because i love at it. They said there was a favorable mix of same thing same date services through the channel. Is that something that target can use to take on walmart because i know having covered that company, the ecommerce strategy is in the moment, pick it up. Rachel it is what the industry likes to call by online and pick up in store and it is profitable so the retailers want to encourage consumers to shop that way and target is trying to do that. They are encouraging people to come into the store with Starbucks Pickup but walmart has made a major push, a big part of becoming a walmart plus subscriber is having even after pickup, faster delivery. Target has to answer the question, how are they going to beat walmart at buy online, pick up in store . Ed rachel tipograph, always great to have you here on bloomberg technology. Crypto firm bitgo we will speak to the ceo mike belshe. That is coming up on bloomberg technology. Wow, you get to watch all your favorite stuff. Its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. Get way more into what your into when you stream on the xfinity 10g network. Its an amazing thing when you show generosity of spirit to someone. And you want people to be saved and to have a better life, then you dont stop. The idea that we have saved five million peoples lives, its overwhelming. Its everything. Caroline welcome back to bloomberg technology. Im Caroline Hyde in new york. Ed i am ed ludlow in san francisco. The nasdaq 100 softer by 6 10 of a percent. We are treading out the lowest we are trending at the lowest level in about a month. Part of it is a global macro discussion about the health of the economy, physically china looking at tech stocks, largely moving to the downside of the session. I am looking at coinbase, youre getting signs of progress for Regulatory Approval but the stock is down 1. 4 , down for the sixth straight session, the worst week of the client since april. We quickly fell away. Getting the details on the revelatory progress and understanding the reaction with bloombergs sonali basak. Explain to me, this was supposed to be a big move for the industry and you look at shares lower, hard to understand. Sonali all things start and end on where the quote crypto is going and bitcoin has been under pressure. The point we are making is what does it mean for coinbase to become a features clearing merchant. The idea of this was they tried for a couple years and the Derivatives Market and the futures market around bitcoin has become large. For coinbase to become a futures cleaning merchant, it adds another player in the market which has become smaller over the years in the broader Derivatives Market. For coinbase to be doing this makes this option more available to retail trailers traders and institutions. This is not something that will be rolled out tomorrow. It will be offered in becoming weeks. Ed approval to sell crypto features in the u. S. In that era of tech showdowns and cage flights, there is one relationship that we Pay Attention to which is coinbase and the ftc. Does this represent a turn in the road for the relationship . Abigail back in wall street, there is a cage fight between the fcc and the ftc one house under agricultural when it comes to congress and one being housed under the world of banking and finance ends allows