Bloomberg Surveillance

Amazon's cloud unit posted the strongest growth rate in almost three years, reassuring investors concerned that the largest seller of rented computing power was losing ground to rivals. Amazon Web Services posted revenue of $33 billion, an increase of 20% from the prior year and the biggest year-over-year rise since the end of 2022. Analysts, on average, estimated 18% growth. The shares jumped about 10% in extended trading after closing at $222.86 on Thursday. The stock has lagged behind that of its industry peers this year, with investors worrying that the company has yet to benefit enough from its AI products. Microsoft Corp. and Alphabet Inc.’s Google have both generated faster growth in their cloud computing businesses than AWS.

For reaction, Bloomberg Businessweek Daily spoke with Bloomberg Intelligence Senior Analyst for E-Commerce and Athleisure Poonam Goyal, Ed Ludlow, host of Bloomberg Tech Ed Ludlow, and Eric Clark, Chief Investment Officer at Accuvest Global Advisors.

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- Stuart Kaiser, Head of Equity Trading Strategy at Citi
- Leland Miller, CEO of China Beige Book
- Sonal Desai, CIO for Fixed Income at Franklin Templeton
- US Energy Secretary Chris Wright

Stuart Kaiser, Head of Equity Trading Strategy at Citi, talks big tech earnings and the Fed's path forward following Wednesday's rate cut. Leland Miller, CEO of China Beige Book, discusses the state of US-China trade relations after President Trump's meeting with Chinese President Xi Jinping in South Korea. Sonal Desai, CIO for Fixed Income at Franklin Templeton, reacts to Fed Chair Jerome Powell's commentary leaving a December rate cut in doubt. US Energy Secretary Chris Wright breaks down the logistics of a potential US-China energy deal.

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Bloomberg Surveillance hosted by Paul Sweeney & Norah MulindaThursday, October 30th, 2025
1) Joe Davis, Chief Economist and Global Head of Investment Strategy at Vanguard, shares his outlook for US rate policy following the Fed's second rate cut of the year.
2) Heidi Crebo-Rediker, Adjunct Senior Fellow at Council on Foreign Relations, on the state of US-China trade relations following Thursday's Trump-Xi meeting in South Korea.3) Adam Farstrup, Head of Multi-Asset, North America at Schroders, discusses US growth on the heels of strong earnings and policy support.
4) Meghan Robson, Head of US Credit Strategy at BNP Paribas, on why recent spread widening and investor risk aversion present a tactical buying opportunity.

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Microsoft Corp. reported a steeper climb in spending than Wall Street expected, fueling anxieties about the high costs of providing AI infrastructure. First-quarter capital expenditures including leases, an indication of data center spending, came in at $34.9 billion, up from $24 billion in the preceding quarter, the company said Wednesday. Microsoft continues “to increase our investments in AI across both capital and talent to meet the massive opportunity ahead,” Chief Executive Officer Satya Nadella said in a statement. Total revenue increased 18% to $77.7 billion in the fiscal first quarter, while profit was $3.72 a share. Analysts on average estimated sales of $75.6 billion and per-share earnings of $3.68. The Azure cloud-computing unit posted a 39% revenue gain in the quarter when adjusting for currency fluctuations, beating the Wall Street estimate of 37%. Investor expectations for Microsoft were high heading into earnings, with all but one analyst tracked by Bloomberg rating the stock a buy.

Meta Platforms said it expects total expenses to significantly increase in 2026, and will continue to invest at historic levels in artificial intelligence. The company also reported third-quarter net income of $2.71 billion, which included a one-time, non-cash income tax charge of $15.9 billion due to the implementation of the tax bill signed into law in July, Meta said in the statement. Without the accounting charge, Meta said net income would have increased 19% to $18.6 billion.
Looking beyond the third-quarter, the company said it expects a “significant reduction” in US federal cash tax payments for 2025 and years to come due to the new law. Meta reported third-quarter sales of $51.2 billion, which beat analysts’ average estimate of $49.6 billion.

For analysis of the tech earnings, Bloomberg Businessweek Daily spoke with Bloomberg Intelligence Senior Technology Analyst Anurag Rana and Ivan Feinseth, Research Director and Chief Investment Officer with Tigress Financial Partners.

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Bloomberg's Tom Keene, Jonathan Ferro and Lisa Abramowicz discuss remarks from Fed Chair Jay Powell following the Federal Reserve's latest policy decision on a special edition of Bloomberg Surveillance.

Treasuries extended losses after Federal Reserve Chair Jerome Powell said a December interest-rate cut was not set in stone, even after delivering a widely expected quarter-point reduction to prop up the labor market. The central bank reduced its benchmark lending rate to 3.75%-4% in its second straight cut — though two officials dissented.

“A further reduction in the policy rate at the December meeting is not a foregone conclusion, far from it,” Powell said in the opening comments of his press conference. In their post-meeting statement, Fed policymakers on Wednesday repeated their assessment that “job gains have slowed” and said “risks to employment rose in recent months.”

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Tom Keene breaks down the Single Best Idea from the latest edition of Bloomberg Surveillance Radio.

In this episode, we feature conversations with Alicia Levine & John Mowrey.

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- Blake Gwinn, RBC Capital Markets Head of US Rates Strategy
- Gargi Chaudhuri, Chief Investment and Portfolio Strategist, Americas, BlackRock
- Pierre Ferragu, Head of Global Tech Infrastructure, New Street Research
- Mary Lovely, Senior Fellow at the Peterson Institute

Blake Gwinn, Head of US Rates Strategy at RBC Capital Markets, previews Wednesday's FOMC rate decision and the potential impact to US treasuries. Gargi Chaudhuri, Chief Investment and Portfolio Strategist for the Americas at BlackRock, discusses the recent records highs for equities against the backdrop of Mag Seven earnings. Pierre Ferragu, Head of Global Tech Infrastructure at New Street Research, talks Nvidia as the AI powerhouse is on track to become the first $5 trillion company. Mary Lovely, Senior Fellow at the Peterson Institute, gives her insights on US trade relations with President Trump set to meet with Chinese President Xi Jinping on Thursday.

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Bloomberg Surveillance hosted by Tom Keene & Paul Sweeney
Wednesday, October 29th, 2025
1) Julian Emanuel, Chief Equity & Quantitative Strategist at Evercore ISI, gives his outlook for markets on the back of AI-driven earnings momentum.
2) Thomas Simons, Chief US Economist at Jefferies, on his expectations for today's FOMC decision.3) John Mowrey, Chief Investment Officer at NFJ Investment Group, on the potential impact of the Federal Reserve ending quantitative tightening.
4) Alicia Levine, Head of Investment Strategy and Equity Advisory Solutions at BNY Wealth, discusses the catalysts behind continued growth momentum.

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Tom Keene breaks down the Single Best Idea from the latest edition of Bloomberg Surveillance Radio.

In this episode, we feature conversations with Robert Kaplan & Ed Yardeni.

Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF

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- Deepak Puri, Chief Investment Officer: Americas at Deutsche Bank
- Ohsung Kwon, Chief Equity Strategist at Wells Fargo
- Katy Kaminski, Chief Research Strategist at AlphaSimplex Group
- Rep. French Hill, (R) Arkansas & Chairman of the House Financial Services Committee

Deepak Puri, Chief Investment Officer: Americas at Deutsche Bank, shares his expectations for the Fed's easing cycle into 2026. Ohsung Kwon, Chief Equity Strategist at Wells Fargo, discusses why he's raising his year-end price target for the S&P 500. Katy Kaminski, Chief Research Strategist at AlphaSimplex Group, talks big tech earnings and the catalysts she sees driving markets. Rep. French Hill, (R) Arkansas & Chairman of the House Financial Services Committee, joins to discuss the latest on the US government shutdown.

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