Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 3: Karen, we begin with what is said to be the
Speaker 3: biggest IPO of the year. British chip designer ARM, which
Speaker 3: is controlled by SoftBank, has unveiled its long awaited filing
Speaker 3: for an initial public offering in the US. We get
Speaker 3: more from Bloomberg technology reporter Alex Webb.
Speaker 4: It's a big deal that they're listening to us. We
Speaker 4: kind of knew this was going to happen.
Speaker 5: It's a massive deal for the IPO market more broadly,
Speaker 5: which has been sort of shut for quite a while.
Speaker 5: We've not seen any significant IPOs over.
Speaker 4: The past year or so.
Speaker 5: This will therefore be a big test to see what
Speaker 5: the appetite is like.
Speaker 4: Now.
Speaker 5: The caveat to this is they are going for a
Speaker 5: very punch evaluation sixty to seventy billion dollars. That that's
Speaker 5: a multiple that is quite a generous premium to the
Speaker 5: Philadelphia stock at Shane Semiconductor in it, which is kind
Speaker 5: of the benchmark for most semiconductor stocks, certainly in the US.
Speaker 3: Bloomberg salx Web says ARM plans to start its road
Speaker 3: show the first week of September. It will pray the
Speaker 3: IPO the following week.
Speaker 2: Well, we have more major tech news out of Europe
Speaker 2: this morning, Nathan microsoft sixty nine billion dollar takeover of
Speaker 2: Activision Blizzard is back in play. That's after the company
Speaker 2: submitted a substantially different deal to the UK's antitrust watchdog.
Speaker 2: We spoke this morning was Sarah Cardell, chief executive of
Speaker 2: the UK's Competition and Markets Authority.
Speaker 6: The key difference is at this time Microsoft will not
Speaker 6: be acquiring any of the cloud streaming rights in relation
Speaker 6: to Appvision games for the next fifteen years. Now you
Speaker 6: might remember, but the main reason why we've blot the
Speaker 6: deal originally was because we were concerned about the impacts
Speaker 6: on competition this important new market for cloud.
Speaker 2: Gaming and competition of Market's Authority Chief Executive Sarah Cardell
Speaker 2: says she is now reconsidering the acquisition. The move gives
Speaker 2: renewed hope to Microsoft that its takeover will be approved.
Speaker 3: Well, Karen Banks are also in focus this morning. Last
Speaker 3: week we saw Moody's cut its credit ratings on several banks.
Speaker 3: Now S and P Global Ratings is following suit. We
Speaker 3: get the latest from Bloomberg' Jeff Bellinger.
Speaker 7: A note issued by S and P says many depositors
Speaker 7: have shifted funds into higher interest bearing accounts, increasing bank's
Speaker 7: funding costs. As a result, S and P says bank's
Speaker 7: liquidity has been squeezed and the value of their securities
Speaker 7: has fallen. The grades for Key Corp, Coomerica, Valley National,
Speaker 7: umb Financial, and Associated Bank Corp Were each lowered one notch.
Speaker 7: S and P lowered its outlook for River City Bank
Speaker 7: and S and T Bank to negative, and said its
Speaker 7: view of Zion's Bancorp remains negative. Jeff Bellinger, Bloomberg Daybreak.
Speaker 8: All right, Jeff.
Speaker 2: Thanks. While staying in the banking sector, Charles Schwab is
Speaker 2: making big moves. The firm plans to cut at least
Speaker 2: five hundred million dollars in annual staff, professional services, and
Speaker 2: real estate costs. Bloomberg's Charlie Pellett has the story.
Speaker 9: Word came in a regulatory filing. It is the latest
Speaker 9: step by the brokerage to respond to investor pressure. The
Speaker 9: company said it will close or down size some real
Speaker 9: estate and reduce headcount. Schwab said earlier this month that
Speaker 9: it was experiencing temporarily lower netflows of client money as
Speaker 9: the brokerage sees attrition of some retail and advisory clients
Speaker 9: assets while it integrates td ameerror trade into its business.
Speaker 9: In New York, Charlie Palett, Bloomberg Daybreak.
Speaker 3: All right, thanks Charlie. Well, let's take a look at
Speaker 3: some stocks on the move this morning. We're watching shares
Speaker 3: of Zoom Video. They are up nearly four percent. The
Speaker 3: company reported earnings that beat estimates and it's raising its forecasts.
Speaker 2: And chairs of Nvidia surged eight and a half percent yesterday, Nathan,
Speaker 2: They're up another one and a half percent this morning.
Speaker 2: Analysts have been raising their price targets on this stock
Speaker 2: ahead of the chip maker's highly anticipated earnings tomorrow.
Speaker 6: Now.
Speaker 3: While Nvidia is the highlight on the Erlings calendarlier this week,
Speaker 3: Karen J. Powell's speech at Jackson Hole is the major
Speaker 3: event for bond investors. Ten year treasury yields have now
Speaker 3: touched their highest level in sixteen years thanks to concern
Speaker 3: about higher rates. Former Fed economist Claudia Sam says markets
Speaker 3: are finally getting the message.
Speaker 10: I don't think the Fed looks at this as some
Speaker 10: structural shift again, and I don't think the market should
Speaker 10: either necessarily like we might be in and continue to
Speaker 10: be in a higher interest rate environment, you know, so
Speaker 10: it's like you want to look out, you know, years,
Speaker 10: Like I think it'll take years for us to get
Speaker 10: back down to you know, the interest rates really coming down,
Speaker 10: the FED country coming down.
Speaker 3: Former FED economist Claudia sam thinks the FED will not
Speaker 3: move from its two percent inflation target.
Speaker 2: And we'll learn more about that outlook this Friday, Nathan
Speaker 2: at the Fed's annual symposium at Jackson Hole. Join us
Speaker 2: for a special four hour edition of Bloomberg Surveillance from
Speaker 2: the event, beginning at eight am Wall Street Time. Our
Speaker 2: podcast listeners can also get special coverage and prominent interviews
Speaker 2: on The Odd Lots Podcast with Joe Wisenthal and Tracy Alloway.
Speaker 3: All right, Karen, let's turn to politics.
Speaker 1: Now.
Speaker 3: Another dramatic moment that could be coming on Thursday. That's
Speaker 3: when former President Donald Trump plans to turn himself into
Speaker 3: authorities in Atlanta. The surrender will come one day after
Speaker 3: the first Republican presidential debate. Trump has already said he's
Speaker 3: not taking part and he has no reason to. According
Speaker 3: to Cook Political Report founder Charlie Cook.
Speaker 11: I would think he would have the former President Trump
Speaker 11: should have his head examined if he did go into debate.
Speaker 11: You know, he's got everything to lose, nothing to gain
Speaker 11: from it. What was the new Des Moines Register NBC
Speaker 11: Paul a forty six point lead in Iowa, and that's
Speaker 11: less than it is nationally in a lot lot of polls.
Speaker 3: Charlie Cook spoke with our Washington correspondent Joe Matthew there
Speaker 3: on Bloomberg's Sound On. You can listen to the show
Speaker 3: weekdays at one pm Eastern on Bloomberg Radio or on
Speaker 3: demand wherever you get your podcasts. More global headlines, send
Speaker 3: a check of sports. Next, This is Bloomberg.
Speaker 8: Nathan.
Speaker 2: Thanks. It's time now for a look at some of
Speaker 2: the other stories making news around the world. For that,
Speaker 2: we're joined by Bloomberg's Amy Morris Samy, Good morning, all.
Speaker 12: Right, Good morning Karen. And during his visit to Maui,
Speaker 12: President Biden says, the rest of the injury is going
Speaker 12: to be helping that island for as long as it takes.
Speaker 12: We get details from Bloomberg's Ed Baxter.
Speaker 1: As some thoughts turn to how to rebuild, We're.
Speaker 13: Focused on what's next. That's rebuilding a long long term,
Speaker 13: rebuilding for long term, and doing it together to help
Speaker 13: get us back on our feet.
Speaker 1: But the President says, the culture of Maui, and specifically
Speaker 1: the Heinatown, must be preserved.
Speaker 13: We will be respectful of these sacred gowns and the
Speaker 13: traditions that rebuild the way that people of Maui wanta build,
Speaker 13: not the way others want to build.
Speaker 1: Biden also expressing the sympathies of the United States for
Speaker 1: the residents who have lost so much. I'm at Baxter Bloomberg.
Speaker 12: Day Break and officials now say at least one hundred
Speaker 12: and fourteen people have died in those fires. More than
Speaker 12: eight hundred and fifty people are still missing. Workers across
Speaker 12: the country want more flexibility with their jobs, and they're
Speaker 12: willing to sacrifice to get it. Bank Rate senior economic
Speaker 12: analyst Mark Hamrick says employers have a challenge ahead of them.
Speaker 2: Nearly nine out of ten workers those who are either
Speaker 2: working or looking for full time work, support a four
Speaker 2: day work week.
Speaker 12: Emrick says a recent Bank Greade survey shows more workers
Speaker 12: are willing to change jobs even take a pay cut
Speaker 12: if it means they can work four days a week.
Speaker 12: Screen time can keep little kids busy for hours, but
Speaker 12: it could also be doing more harm than good. A
Speaker 12: new study by the Journal of the American Medical Association
Speaker 12: Pediatrics finds that one year old kids exposed to more
Speaker 12: than four hours of screen time each day are up
Speaker 12: to three times as likely to experience developmental delays in speech,
Speaker 12: problem solving and social skills. Pediatrician Aloch Patel explains.
Speaker 14: Kids at age one who have an excessive amount of
Speaker 14: screen time are lacking that face to face human interaction,
Speaker 14: which is how they learn about speech, intonation, listening skills,
Speaker 14: and essentially everything about the world at that age.
Speaker 12: The study shows that by the time the kids are
Speaker 12: two years old, screens disrupt and displace interactions with caregivers,
Speaker 12: and that limits a child's opportunity for verbal exchanges. And
Speaker 12: then if there's no physical component, sedentary children aren't able
Speaker 12: to practice their gross motor skills. The study involved more
Speaker 12: than seven thousand Japanese children. Global News twenty four hours
Speaker 12: a day, powered by more than twenty seven hundred journalists
Speaker 12: and analysts in more than one hundred twenty countries. I'm
Speaker 12: Amy Morris, and this is Bloomberg Karen.
Speaker 2: All right, Amy, thank you. It is five h nine
Speaker 2: on Wall Street. Time now for the Bloomberg Sports Update
Speaker 2: with Dan Schwartzman.
Speaker 9: Dan, Good morning, Karen.
Speaker 15: The Baltimore Ravens twenty four game preseason winning streak is snapped.
Speaker 16: Kickings store and with nine seconds left. That's courtesy of ESPN.
Speaker 16: The Ravens losing the first Monday night football game of
Speaker 16: the preseason to the Commander's at FedEx Field twenty nine
Speaker 16: to twenty eight on that forty nine yard field goal
Speaker 16: from Joey Sly newly minted Washington starting quarterback Sam Howell
Speaker 16: with a big Knight going tow teen of twenty five fo.
Speaker 15: One hundred and eighty eight yards and two touchdowns. Multiple
Speaker 15: reports say that the Indianapolis Colts have granted All Pro
Speaker 15: running back Jonathon Taylor promission to seek a trade. The
Speaker 15: twenty twenty one NFL rushing leader has been looking to
Speaker 15: get a contract extension. The team has been unwilling to
Speaker 15: negotiate a new deal. Taylor has rushed for over thirty
Speaker 15: eight hundred yards in three seasons Major League Baseball Scoreboard.
Speaker 15: The Mariners remain red hot, winners of seven straight as
Speaker 15: they knock off the White Sox in Chicago fourteen to two.
Speaker 15: Elsewhere it was at Giants losing at the Phillies ten
Speaker 15: to four, the Mets blowing out the Braves in Atlanta
Speaker 15: ten to four as well, Red Sox lose at Houston
Speaker 15: nine to four, and it was the Athletic slipping past
Speaker 15: the Royals in Oakland six to four. Speaking of the A's,
Speaker 15: they've hired a construction company to build their proposed new
Speaker 15: stadium in Las Vegas. The team has brought in Mortenson
Speaker 15: McCarthy construction firm. It's the same company that build the
Speaker 15: Legion Stadium, home of the Raiders. The team's looking to
Speaker 15: build a thirty thousand seat retractable roof stadium on the
Speaker 15: Vegas Strip for an estimated cost of one and a
Speaker 15: half billion dollars. Thatcher Bloomberg Sports Update on Dan schwartz.
Speaker 17: Man from coast to coast, from New York to San Francisco,
Speaker 17: Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg
Speaker 17: Business app and Bloomberg dot Com.
Speaker 3: This is Bloomberg Day Break. Good morning, I'm Nathan Hager.
Speaker 3: We could be in line for the biggest stock debut
Speaker 3: of the year, and it's coming out of the chip sector. Armholdings,
Speaker 3: the UK chip designer owned by Japan's SoftBank, has issued
Speaker 3: the filing for an initial public offering in the US
Speaker 3: that could be the biggest for the tech industry since
Speaker 3: Ali Baba nearly a decade ago, and it could value
Speaker 3: the company at up to eighty billion dollars for more.
Speaker 3: We're joined by Bloomberg technology reporter Alex Webb. Alex, good morning.
Speaker 3: So what is the potential for this stock debut to
Speaker 3: shake up the publicly traded ship industry.
Speaker 4: Well, the thing that's fascinating here is that there's been
Speaker 4: a lot of different reports over the past year or
Speaker 4: so that after the deal to sell it to Invidia,
Speaker 4: the owner Software had reached deal to sell it to InVideo.
Speaker 4: After that fell apart that then of the big players Samsung, Intel, Apple,
Speaker 4: Envidia themselves possibly Amazon, we're in talks about taking an
Speaker 4: anchor shareholding in this in this IPO when it finally
Speaker 4: came around. We don't know ultimately what has progressed, what
Speaker 4: is actually going to happen on that front, but given
Speaker 4: that it's likely to be ten percent of a prospective
Speaker 4: sixty to seventy billion dollar valuation. That might suggest that
Speaker 4: there's not actually going to be a huge amount of
Speaker 4: free float left if you have a whole pile of
Speaker 4: anchor investors. That seems to be the gamble that soft
Speaker 4: Bank is taking that if you have a certain amount
Speaker 4: of scarcity and you sort have mandated a lot of
Speaker 4: banks to run this IPO as they have, then hopefully
Speaker 4: they'll be getting They would be hoping they'd get a
Speaker 4: decent price, the reason being because if you look at
Speaker 4: the details of the filing, their revenue is actually shrinking
Speaker 4: at the moment. Now that's not unique to ARM. This
Speaker 4: the case with a lot of the chip industry. In fact,
Speaker 4: it's the reason why ARMY shrinking, because a lot of
Speaker 4: the chip industry isn't doing brilliantly well. But it also
Speaker 4: suggests that ARM isn't necessarily a massive player in artificial intelligence,
Speaker 4: even if it would like you to think so. As
Speaker 4: it gears up this listing, it is not growing that
Speaker 4: at the same pace as, for instance, in video, which
Speaker 4: does use some ARM technology. But crucially it is not
Speaker 4: the GPU stuff, the graphics processing unit where ARM is strong.
Speaker 4: It's very much on the CPU side that they have
Speaker 4: developed their core competency.
Speaker 3: So how could ARM potentially fit in as a play
Speaker 3: in the chip sector you mentioned in video. We're going
Speaker 3: to hear their earnings tomorrow, and obviously in Vidia is
Speaker 3: such a dominant player in the artificial intelligence space, where
Speaker 3: does ARM potentially fit in there?
Speaker 4: Well, Look, a lot of people will say that ARM
Speaker 4: is one of the kind of core pieces of the
Speaker 4: chip industry that if you believe in the long term
Speaker 4: health of the chip industry, you have to be in
Speaker 4: ARM in the same way you might have to be
Speaker 4: in TSMC and the same way you might have to
Speaker 4: be in video. They have been trying to strengthen their
Speaker 4: positionings is their positioning in data center, as has in Vidia.
Speaker 4: In fact in video when it was planning or hoping
Speaker 4: still to do the ARM deal, they hoped that it
Speaker 4: would give them strength across the gamut in data centers,
Speaker 4: that you would have the CPOs which are essential, and
Speaker 4: you would have the GPUs, which are increasingly useful for
Speaker 4: AI applications. So the fear though, was that if it
Speaker 4: had done that deal within VideA, then it wouldn't necessarily
Speaker 4: be play as well with the rest of the chip ecosystem, who,
Speaker 4: of course see it as so important to whatever they do.
Speaker 4: It is, as you've said, a very important piece. Whether
Speaker 4: it can continue to grow at the pace that it
Speaker 4: was five six years ago, even before it is acquired
Speaker 4: by soft Bank in twenty sixteen, that is a bigger question.
Speaker 3: In the time we have left, Alex, there's so much
Speaker 3: happening in the tech space. The Microsoft Activision Blizzard deal
Speaker 3: is apparently back in play in the UK. What's what's
Speaker 3: the latest?
Speaker 4: Yeah, so if UK tries to block this deal, has
Speaker 4: or did initially block this deal on the basis of
Speaker 4: Microsoft potentially getting a dominant position in cloud gaming. So
Speaker 4: rather than you know, downloading staff and playing on you
Speaker 4: on your console at home, you'd be connecting with the
Speaker 4: Internet and playing on stuff remotely. Now they want Microsoft
Speaker 4: has now offered to do and agreed to do, is
Speaker 4: the license. It's it's cloud gaming ip to Ubisoft is
Speaker 4: a big competitor in the space. By say, when I
Speaker 4: say it's technology, I mean or it's games, I mean
Speaker 4: Activision Blizzards games. That appears to be a major step
Speaker 4: to assuage the CMA's concerns. It would be a global deal,
Speaker 4: with the exception of the European Atomic Area and it
Speaker 4: was an opportunity for everybody really to save face, for
Speaker 4: the CMA to save face because it looks like they've
Speaker 4: got a big concession. Because everybody else in the world
Speaker 4: had basically approved this deal, the European Union as well
Speaker 4: as in the US. Of course, the regulator to try
Speaker 4: to block it. A courd ultimately pushed it through. So
Speaker 4: this daye that the shares of trading up in the
Speaker 4: pre market. It's a big boost as well for Ubisoft
Speaker 4: also trading app. A lot of people seem to think
Speaker 4: this will be enough to get the deal across the line.
Speaker 8: This is Bloomberg day Break Today, your morning brief on
Speaker 8: the stories making news from Wall Street to Washington and beyond.
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Speaker 3: And I'm Karen Moscow.
Speaker 2: Join us again tomorrow morning for all the news you
Speaker 2: need to start your day right here on Bloomberg Daybreak