mandeep singh joins us now for more. down 1.6%.one is trying to figure out what damage has been done. what damage has been done so far? mandeep: it's a tragic event and clearly we don't know the extent of the shutdowns or if there have been any leakages, gases. there's a lot that goes in the manufacturing semis and it's a complicated set up so we don't know the extent of the damage but we know there's clearly been some loss of lives and i think when it comes to factories i would imagine there is a temporary sort of, you know, shutdown and we will find out exactly how much impact it will have on the production. annmarie: what could the impact be? what would that materially mean? mandeep: so think of some of these manufacturing notes are like 3, 5 nanometers. that requires a lot of talented people to show up at these factories as well as in terms of the set up. we are talking about really complicated things in terms of how, as i said, there's a lot of gases that goes in the manufacturing these semiconductors. and i think clearly ther

mandeep singh, thank you so much. welcome back ethan devitt, chief market strategist over at monette. there was a really interesting note out from goldman sachs earlier today basically saying that they see europe as the winner in this next leg. the view is that europe is going to benefit from a pickup and in particular, upswing in the manufacturing cycle as well as rate cuts. i keep hearing the call for european bullishness over the u.s.. feels like it never quite works out. if this time different? >> there's a little bit of wishful thinking. i don't see a reason for europe to be any different or to be ahead of the u.s. or to be the winner when the u.s. is a loser, i just don't see that relative attractiveness. i think it will be a follower and lucky to do so on the coattails of the sentiment around the u.s. which is restoring confidence in equity markets and generally restrain confidence in all risk assets. unfortunately with the exception of its large stocks, we're seeing a bit of this vicious cycle of stock markets

we will dig in but thank you kurt wagner and mandeep singh. coming up on the program sales forecast fall short of wall street expectations but there is some positive outlook ai related. we will speak to bill mcdermott. there is a lot happening at once in the markets as well. microsoft and google reporting after the bell. those are pretty significant declines in the idea is we are worried on the back of meda's earnings, that all of this spend on ai infrastructure is not bringing some big boom in generative ai driven sales growth. actual software products that people use and companies make money from. this is bloomberg technology. ♪ (upbeat music) there's more to business than the business you're in. if you use data, that's the privacy business. manufacturing on demand? you're talking cloud business. got a few million hyper-connected customers? digital experience business. that was fast. that's where deloitte comes in. with the right combination of talent and technology to help advance and connect all that it takes to excel in business ... to th

mandeep singh joins us now. big gains reviving this benchmark. it seems like the common thread in addition to ai was the cloud. mandeep: it was. i think that cloud clearly for alphabet was heading in the right direction, given that we have seen somewhat of a muted cloud growth for aws and google in the past two quarters. this quarter was reassuring for alphabet. the real surprise to me was on the search side. everyone thought that traditional search was getting disrupted. to the contrary, it is helping to drive engagement. the margins went up. a lot of the concerns were around the cost of search going up. that was the surprise. the fact that the core search margins expanded 500 basis points. everyone is talking about how traditional search is getting disrupted and the cost is going up. i think that is why you see this kind of reaction. katie: you are also seeing a boost because may be expectations were pretty sour after what we saw from meta with shares following 11% yesterday. they are currently unchanged. increased spending. then there was the f

mandeep singh with a bytedance report.shington and the fed are aligned on. that's a conversation you do not want to miss. we begin with stocks holding steady in the united states ahead of cpi data later this morning. amy wu silverman says enthusiasm is beginning to fade. the left tail is starting to wake up. we are referring to the bed for downside -- bid for downside protection. amy: good morning. jonathan: how are you interpreting this shift? last time we spoke it was a different story. amy: might i add it was actually the peak of enthusiasm when we looked at the call demand on nvidia as a proxy for ai enthusiasm. we went to the 100th percentile to about 40th percentile now. what it tells you is this enthusiasm is still there but it's waned substantially. as you mentioned in the quote, the left tail is picking up. we are seeing the options market say maybe there is some thing to hedge out there. to be clear, we have not seen that since 2022. jonathan: is this anticipation or the price? since we last spoke, nvidia was dow

mandeep singh joins us around the table. amazon and apple next week. later in may, nvidia.e release, which one would it be? mandeep: microsoft. good enough to earnings will not be enough this season. you need spectacular earnings. nvidia had delivered that the last few times. this time it will not be nvidia but probably microsoft. they are the ones that are actually deploying ai. when you think about what are companies doing with all of the gpu's, nvidia and meta have the most allocation. microsoft is the one that is actually deploying on the cloud. that is what you want to see in the numbers. jonathan: what do you expect to see? mandeep: azure growth they quantified around 2500 basis points. you want that live to be higher than last time around. lisa: there has been a feeling in markets, maybe we got ahead of ourselves and how quickly ai would be adopted and deployed. do you expect to see that sentiment in microsoft earnings, given they are trying to deploy it in some specific ways? mandeep: microsoft is uniquely positioned because, one, it is using a lot of to deploy its

joining us now is mandeep singh. how significant of a move is this by apple? ack moment when it comes to apple. clearly they still have that installed base and is to be on the smartphone side also i would argue on the notebook and pc side. they control the chip and operating systems. that is unlike a lot of other companies on the pc side, dell and lenovo, depends on intel to give them the chips. vertical integration has always been apple's strength. if they can incorporate this device, the mood of the moment is, what can you show me on the ai front? apple has not done that. if they can do that through this chip innovation, people will be excited about the prospects going forward. lisa: this might be a dumb question but where did this come from? is this from the car unit, disbanded, pushed over to another unit, did they decide they had this capability to inject ai chips this quickly? mandeep: they have been investing on the ai side. apple is always secretive about what they do. when they launch a product, you see the real innovation. they been talking about how

mandeep singh of "bloomberg intelligence." you will see plenty more of mandeep this week.owards the end of may, we will hear from nvidia. this just in from goldman sachs -- fairview for friday, payrolls, 275,000 the estimate. the median is 250 thousand. much more still to come. we will catch up with stephanie roth of wolfe research. live from new york, good morning. ♪ you're probably not easily persuaded to switch mobile providers for your business. but what if we told you it's possible that comcast business mobile can save you up to 75% a year on your wireless bill versus the big three carriers? you can get two unlimited lines for just $30 each a month. all on the most reliable 5g mobile network—nationwide. wireless that works for you. for a limited time, ask how to save up to $830 off an eligible 5g phone when you switch to comcast business mobile. don't wait! call, click or visit an xfinity store today. jonathan: 60 minutes away from the opening bell and equity futures are positive by 0.2%. the nasdaq is doing ok as well. small caps a been up and down and all around. th

i thought mandeep singh from bloomberg intelligence had a good sum up of what is going on. he said the increased cap spending could be tied to the investments in generative ai. when you look at the losses in reality labs, it suggests the company is unlikely to see upward revisions to the free cash flow in the near term. the stock still has 67 -- 62 buys, seven holds, and only three sells, according to bloomberg. katie: if there is anything we know about markets, it is that they are not patient. tell me about caterpillar, also having a rough morning. >> down over 8%. they said they expect deceit second-quarter sales fall. dealer inventories fall. the adjusted eps for the previous quarter did beat. the revenue missed, but only slightly, $15.8 billion versus estimates of 16.12. it seems the bar was just very high for caterpillar coming into this. that stock was already up 23 percent year-to-date, so the market does seem to be punishing mrs.. we also know that as a manufacturing company, heavy machinery, they are kind of an economic know whether. they said they see weakness in

mandeep singh the bloomberg intelligence. it's a fruitless conversation.ositive by .7%. plus get an update on stories elsewhere. here's dani burger. dani: testimony resumes in the hush money trial of the former president donald trump. now it is the defense's turn to question the national enquirer publisher david packer. he was the first witness and described helping to very embarrassing stories trump felt would hurt the campaign. the ftc is alleging amazon founder jeff bezos, the ceo and other senior leaders destroy business related text messages. he said between april 2019 and may 2022, they used signal with a disappearing message function. the filing also expands from other antitrust allegations from last fall. an amazon spokesperson called the allegations baseless. bhp bids for anglo is riddling to the copper markets. for the first time in two years. that deal underscores supply issues among the metal. they would rather buy arrival them build new projects. it tells you it is just too offensive. blackstone says prices need to hit $12,000 before new mines

mandeep singh joins us now. good to see you. meta-. what are you expecting?e. estimates go up by 40%. as a result of that, they have made that pivot ai and that also looks to be a smart move because now they have a large model where they can build an ecosystem. jonathan: never is a strong word. mandeep: they have spent almost $50 million. it is a niche category. when you have apple stepping into it, they cannot make a dent . and it is hard to make it as a hardware -- nobody reminds them. lisa: are they going to the we name to get a better branding at this point? i'm curious as to how high the bar is. are they setting the tone for earnings, even for the likes of meta-? mandeep: the one thing i will flag is had exposure to advertisers. chinese advertisers like temu, shein -- they advertise on meta-'s platforms. it was 5% of growth last quarter. if go south -- it is not like it will o to zo. but at pricing would take a hit. annmarie: i'm still shocked that you do not think they had a chance. ray-ban is -- mandeep: do you know how much they are subsidizing? the r

mandeep singh joins us now. i said to you at this time yesterday they would deliver topline growth below 20%, but would you have said to me? mandeep: the only caveat would be that if they lost $4 billion on reality labs. even yesterday, they called out air glasses and wrote down inventory in lapsing vr, putting into question that there are no investment markers in reality labs and no path modernization. ai is being monetized across all products. it's making the recommendation better for targeting. you can see it. why not get more clarity? jonathan: what about the capex figures that we saw yesterday? mandeep: i think that what you are going to see is the numbers are going to go sideways? all the capex will be reflected in the gross margin over time. microsoft will come up with the prophets in the market will probably cheer that. that is what meta needs to do. they need to separate the reality labs component versus the ai component. lisa: this is where i wanted to go mandeep: we know that the glasses for reality l

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