1
00:00:01,800 --> 00:00:05,120
Speaker 1: From the Bloomberg INTERACTI Burgers Studios. This is Bloomberg day

2
00:00:05,120 --> 00:00:07,080
Speaker 1: Break for Tuesday, April eighteenth.

3
00:00:07,160 --> 00:00:10,680
Speaker 2: Coming up today, Big bank earnings continue with Goldman Sachs

4
00:00:10,760 --> 00:00:12,200
Speaker 2: and Bank of America reporting.

5
00:00:12,320 --> 00:00:15,120
Speaker 1: The Group of Seven Nations vow to support Ukraine for

6
00:00:15,160 --> 00:00:16,599
Speaker 1: as long as it takes.

7
00:00:16,760 --> 00:00:19,479
Speaker 2: Elon Musk says he wants to take on Microsoft and

8
00:00:19,600 --> 00:00:22,239
Speaker 2: Google in artificial intelligence.

9
00:00:21,720 --> 00:00:24,599
Speaker 1: And Tim Cook opens Apple's first store in India.

10
00:00:24,840 --> 00:00:28,120
Speaker 3: Trial begins on the Fox News Dominion voting machine case.

11
00:00:28,200 --> 00:00:32,120
Speaker 3: Plus a secret illegal police station in Chinatown has been

12
00:00:32,159 --> 00:00:35,080
Speaker 3: shut down. I'm Michael Varn. We'll explain straight ahead.

13
00:00:35,159 --> 00:00:37,919
Speaker 4: I'm John Stash, Aaron Sports Met's beat. The Dodgers playoff

14
00:00:37,960 --> 00:00:40,239
Speaker 4: losses for the Nets and Islanders. The Knicks play the

15
00:00:40,280 --> 00:00:42,360
Speaker 4: Calves tonight. The Rangers play the Devilment.

16
00:00:43,680 --> 00:00:47,080
Speaker 5: That's all straight ahead on Bloomberg day Break, The Business

17
00:00:47,120 --> 00:00:49,600
Speaker 5: news you need to starn your day in just one

18
00:00:49,720 --> 00:00:54,200
Speaker 5: fifteen minute podcast each morning on Apples, Spotify, The Bloomberg

19
00:00:54,240 --> 00:00:56,880
Speaker 5: Business Appen everywhere you get your podcasts.

20
00:01:00,000 --> 00:01:01,320
Speaker 2: Good morning, I'm Nathan.

21
00:01:01,000 --> 00:01:03,960
Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're

22
00:01:04,000 --> 00:01:04,800
Speaker 1: following today.

23
00:01:05,280 --> 00:01:08,320
Speaker 2: Let's begin with earnings. This morning too. Of the biggest

24
00:01:08,360 --> 00:01:11,040
Speaker 2: banks on Wall Street report today, and we get a

25
00:01:11,080 --> 00:01:13,200
Speaker 2: preview from Bloomberg's Shanali Bassic.

26
00:01:13,440 --> 00:01:15,479
Speaker 6: We'll wait diar from Bank of America to c if

27
00:01:15,520 --> 00:01:19,160
Speaker 6: it'll increase its expectations for net interest income this year.

28
00:01:19,400 --> 00:01:23,520
Speaker 6: Remember a massive rival, JP Morgan already increased their expectation

29
00:01:23,680 --> 00:01:26,959
Speaker 6: for lending revenue by billions of dollars. We'll also hear

30
00:01:27,000 --> 00:01:29,480
Speaker 6: from Goldman Sachs. And at Goldman they have one of

31
00:01:29,520 --> 00:01:32,640
Speaker 6: the biggest fixed income houses on Wall Street. JP Morgan

32
00:01:32,640 --> 00:01:35,200
Speaker 6: and City Group already posted jumps in that business that

33
00:01:35,240 --> 00:01:38,080
Speaker 6: were bigger than Wall Street expected. We'll also here from

34
00:01:38,080 --> 00:01:41,120
Speaker 6: BNY Mellon and Western Alliance Bank. The big story this

35
00:01:41,200 --> 00:01:43,880
Speaker 6: week will be how regional banks and other big financial

36
00:01:43,920 --> 00:01:47,080
Speaker 6: services firms are being impacted by the rise in interest rates.

37
00:01:47,120 --> 00:01:50,000
Speaker 2: Bloomberg Shinali Basic says, look for Bank of America's earnings

38
00:01:50,000 --> 00:01:53,200
Speaker 2: at six forty five am Wall Street time. Goldman Sachs

39
00:01:53,280 --> 00:01:54,559
Speaker 2: reports at seven thirty.

40
00:01:54,840 --> 00:01:57,440
Speaker 1: Well, turning to the global economy now, Nathan, we got

41
00:01:57,440 --> 00:02:02,160
Speaker 1: a surprise in the UK. Overnight growth unexpectedly accelerated, with

42
00:02:02,240 --> 00:02:05,080
Speaker 1: average earnings rising six point six percent in the three

43
00:02:05,080 --> 00:02:08,120
Speaker 1: months through February. That was quicker than the six point

44
00:02:08,160 --> 00:02:12,400
Speaker 1: two percent pace that was expected. Bloombergy's a senior UK economist,

45
00:02:12,480 --> 00:02:15,400
Speaker 1: Dan Hansen says the data is now sending a clear

46
00:02:15,440 --> 00:02:16,840
Speaker 1: message to the Bank of England.

47
00:02:17,400 --> 00:02:20,000
Speaker 7: This tips the balance sorts them hiking in May. This

48
00:02:20,080 --> 00:02:22,760
Speaker 7: is such a big surprise relative to our forecast, and

49
00:02:22,800 --> 00:02:25,360
Speaker 7: we think relative to their forecasts. I think even if

50
00:02:25,400 --> 00:02:27,519
Speaker 7: you do get a slow down in inflation tomorrow from

51
00:02:27,600 --> 00:02:30,720
Speaker 7: ten point four percent, we're expecting nine point eight percent,

52
00:02:30,800 --> 00:02:33,919
Speaker 7: it's obviously still extremely high relative to a two percent target.

53
00:02:34,200 --> 00:02:37,799
Speaker 1: And Bloombergy's senior UK economist Dan Hanson notes the NEXTBOE

54
00:02:37,919 --> 00:02:39,480
Speaker 1: meeting comes on May eleventh.

55
00:02:39,560 --> 00:02:42,400
Speaker 2: The economic data are also in focus in Asia. Karen

56
00:02:42,520 --> 00:02:45,120
Speaker 2: China's economy grew four and a half percent in the

57
00:02:45,120 --> 00:02:47,920
Speaker 2: first quarter. That's the fastest pace in a year, but

58
00:02:47,960 --> 00:02:50,639
Speaker 2: the monthly data for March came in mixed and Bloomberg

59
00:02:50,720 --> 00:02:53,640
Speaker 2: Daybreak Asia anchor Brian Curtis has more from Hong Kong.

60
00:02:53,960 --> 00:02:58,320
Speaker 8: Some strong data here and some that's disappointing. GDP expanding

61
00:02:58,360 --> 00:03:01,480
Speaker 8: four point five percent from a year earlier was a surprise,

62
00:03:01,639 --> 00:03:04,959
Speaker 8: higher than the estimate of four percent retail sales jumping

63
00:03:05,000 --> 00:03:07,560
Speaker 8: ten point six percent in March from a year ago,

64
00:03:07,800 --> 00:03:10,120
Speaker 8: and that was stronger than the estimate of seven point

65
00:03:10,160 --> 00:03:14,720
Speaker 8: five percent. However, industrial output rising just three point nine percent,

66
00:03:14,800 --> 00:03:19,359
Speaker 8: weaker than forecast, and fixed asset investment also lower than expected.

67
00:03:19,720 --> 00:03:23,440
Speaker 8: Bloomberg Economics says consumption is set to remain strong this

68
00:03:23,600 --> 00:03:26,080
Speaker 8: year and that may just be the jewel of this

69
00:03:26,160 --> 00:03:30,200
Speaker 8: big set of data. In Hong Kong, Brian Curtis Bloomberg Daybreak.

70
00:03:29,919 --> 00:03:33,880
Speaker 1: Right, Brian thanks Well. Geopolitics is in focus in Japan today.

71
00:03:33,919 --> 00:03:36,640
Speaker 1: The Group of Seven Nations vound to support Ukraine for

72
00:03:36,760 --> 00:03:39,960
Speaker 1: as long as it takes in its fight against Russia,

73
00:03:40,040 --> 00:03:43,800
Speaker 1: while also calling for greater engagement which China. Bloomberg's Amy

74
00:03:43,840 --> 00:03:46,240
Speaker 1: Morris has details from our ninety nine to one newsroom

75
00:03:46,280 --> 00:03:46,960
Speaker 1: in Washington.

76
00:03:47,280 --> 00:03:50,720
Speaker 9: The Block condemned Russia's war against Ukraine, reiterated support for

77
00:03:50,840 --> 00:03:55,040
Speaker 9: Ukraine's peace plan, and slammed Russia's irresponsible nuclear rhetoric. The

78
00:03:55,120 --> 00:03:58,280
Speaker 9: G seven ministers also said they recognized the importance of

79
00:03:58,320 --> 00:04:01,120
Speaker 9: engaging candidly with China and the need to work together

80
00:04:01,200 --> 00:04:04,600
Speaker 9: on common interests, while calling for a peaceful resolution of

81
00:04:04,640 --> 00:04:05,880
Speaker 9: Taiwan related issues.

82
00:04:06,080 --> 00:04:06,200
Speaker 1: Now.

83
00:04:06,240 --> 00:04:09,040
Speaker 9: The language on China was softened as the group tries

84
00:04:09,080 --> 00:04:13,120
Speaker 9: to project unity after Emmanuel Macrone's recent trip to Beijing,

85
00:04:13,400 --> 00:04:16,160
Speaker 9: when the French leader said the European Union should avoid

86
00:04:16,200 --> 00:04:19,440
Speaker 9: being dragged into a dispute with China by the US.

87
00:04:19,480 --> 00:04:22,400
Speaker 9: In Washington, I Maymy Moore as Bloomberg Daybreak.

88
00:04:22,080 --> 00:04:23,880
Speaker 2: Amy, Thanks. We have an update this morning on the

89
00:04:23,960 --> 00:04:27,239
Speaker 2: latest mission from SpaceX. The company says it'll try again

90
00:04:27,320 --> 00:04:31,839
Speaker 2: to launch its massive starship on Thursday. Bloomberg's Ed Baxter reports.

91
00:04:32,240 --> 00:04:35,200
Speaker 10: The crew says it's using the malfunction valve that scuttled

92
00:04:35,279 --> 00:04:37,880
Speaker 10: yesterday's launch as a valuable learning experience.

93
00:04:37,960 --> 00:04:40,880
Speaker 11: We're learning things today about the integrated tasks that are

94
00:04:40,920 --> 00:04:44,799
Speaker 11: going to set us up for success in a future attempt.

95
00:04:44,440 --> 00:04:46,920
Speaker 10: As they tested mechanisms down to a hold of T

96
00:04:47,200 --> 00:04:50,080
Speaker 10: minus forty seconds. This is the rocket that Musk feels

97
00:04:50,120 --> 00:04:52,800
Speaker 10: will ultimately get people to Mars, but this is the

98
00:04:52,839 --> 00:04:55,599
Speaker 10: first attempt to even get it into outer space. So

99
00:04:55,760 --> 00:04:59,560
Speaker 10: Elon Musk said that four twenty is his favorite day

100
00:04:59,600 --> 00:05:03,200
Speaker 10: of the year, and there it is in San Francisco.

101
00:05:03,279 --> 00:05:05,400
Speaker 10: I'm at Baxter Bloomberg Gay Break Europe.

102
00:05:05,360 --> 00:05:08,040
Speaker 1: All right, and thank you well. Space isn't the only

103
00:05:08,080 --> 00:05:11,400
Speaker 1: thing on Elon Musk's mind today. He's also talking about

104
00:05:11,480 --> 00:05:14,719
Speaker 1: plans to get into artificial intelligence that Tesla on Twitter.

105
00:05:14,839 --> 00:05:17,360
Speaker 1: CEO says he wants to create a third option to

106
00:05:17,480 --> 00:05:21,120
Speaker 1: rival Microsoft's Open AI and Alphabet's Deep Mind.

107
00:05:21,360 --> 00:05:23,840
Speaker 12: I'm going to thought something which you call truth GBT

108
00:05:24,240 --> 00:05:29,599
Speaker 12: or a maximum truth seeking AI that tries to understand

109
00:05:29,600 --> 00:05:30,520
Speaker 12: the nature of the universe.

110
00:05:30,960 --> 00:05:33,880
Speaker 1: In an interview with Tucker Carlson on Fox News, Elon

111
00:05:33,960 --> 00:05:37,880
Speaker 1: Musk says bots like chat GPT are too politically correct.

112
00:05:38,160 --> 00:05:40,760
Speaker 1: He says a truth seeking AI, as he puts it,

113
00:05:40,839 --> 00:05:43,480
Speaker 1: would be less likely to annihilate humans.

114
00:05:43,640 --> 00:05:46,440
Speaker 2: Well, Karen another tech CEOs in the spotlight this morning.

115
00:05:46,480 --> 00:05:50,240
Speaker 2: Tim Cook has officially opened Apple's first company owned store

116
00:05:50,279 --> 00:05:52,880
Speaker 2: in India, and we get the details live from Bloomberg's

117
00:05:52,920 --> 00:05:54,520
Speaker 2: John Tucker, John and Nathan.

118
00:05:54,560 --> 00:05:57,800
Speaker 12: Tim Cook beamed took selfies and hug customers at the

119
00:05:57,800 --> 00:06:00,960
Speaker 12: new Apple store in Mumbai. He's got good reason to smile.

120
00:06:01,200 --> 00:06:04,360
Speaker 12: India is the world's second biggest mobile market with one

121
00:06:04,400 --> 00:06:08,000
Speaker 12: point four billion potential customers. Oh, it's been years in

122
00:06:08,040 --> 00:06:10,160
Speaker 12: the works because Apples had to jump through a lot

123
00:06:10,160 --> 00:06:13,239
Speaker 12: of hoops. They had to meet regulators demands, including sourcing

124
00:06:13,279 --> 00:06:16,200
Speaker 12: some of the products locally. Right now, only four percent

125
00:06:16,240 --> 00:06:20,760
Speaker 12: of India's smartphone users have iPhones, and even with that penetration,

126
00:06:20,920 --> 00:06:23,640
Speaker 12: iPhone sales in the last twelve months, we're almost six

127
00:06:23,800 --> 00:06:27,440
Speaker 12: billion dollars live in New York I, John Tucker, Bloomberg Daybreak.

128
00:06:27,560 --> 00:06:30,040
Speaker 1: All right, John, thank you. And Apple is also banking

129
00:06:30,080 --> 00:06:32,160
Speaker 1: on another way to make money. It's teaming up with

130
00:06:32,240 --> 00:06:35,640
Speaker 1: Goldman Sachs to offer a high yield savings account.

131
00:06:39,040 --> 00:06:40,960
Speaker 2: It's fifty degrees in New York. It's going to be

132
00:06:40,960 --> 00:06:43,960
Speaker 2: breezy and continued cool today with highs in the upper fifties.

133
00:06:44,000 --> 00:06:46,040
Speaker 2: We get down to around forty five tonight under a

134
00:06:46,120 --> 00:06:48,360
Speaker 2: probably to mostly cloudy skinnes And now it's time to

135
00:06:48,360 --> 00:06:50,080
Speaker 2: take a look at some of the other stories.

136
00:06:49,720 --> 00:06:51,479
Speaker 13: Making news in New York and around the world with

137
00:06:51,480 --> 00:06:54,120
Speaker 13: Bloomberg s. Michel bar Good morning, Michael, Good morning, Nathan.

138
00:06:54,200 --> 00:06:57,200
Speaker 13: Federal authorities say two men were arrested for operating an

139
00:06:57,279 --> 00:07:01,799
Speaker 13: illegal secret police station on behalf of the Chinese government

140
00:07:01,880 --> 00:07:04,839
Speaker 13: in Manhattan. Authorities rate at the so called station on

141
00:07:04,920 --> 00:07:08,440
Speaker 13: East Broadway in Chinatown. Official say more than three dozen

142
00:07:08,480 --> 00:07:12,840
Speaker 13: members of China's National police also faced charges accusing them

143
00:07:13,120 --> 00:07:16,840
Speaker 13: of creating and using fake social media accounts to locate

144
00:07:16,920 --> 00:07:20,320
Speaker 13: and harass dissidents. In the US, a twenty year old

145
00:07:20,360 --> 00:07:22,800
Speaker 13: woman was shot and killed in upstate New York over

146
00:07:22,800 --> 00:07:26,360
Speaker 13: the weekend after the car she was pulled in to

147
00:07:26,520 --> 00:07:31,040
Speaker 13: the wrong driveway. She says that police say that Caitlin

148
00:07:31,080 --> 00:07:33,679
Speaker 13: Gillis was with three people headed to a friend's house

149
00:07:33,920 --> 00:07:36,360
Speaker 13: when they ended up at the wrong house in Hebron,

150
00:07:36,800 --> 00:07:39,000
Speaker 13: Washington County. Sheriff Jeff Murphy.

151
00:07:39,400 --> 00:07:42,800
Speaker 14: While they were leaving the residents, once they determined that

152
00:07:42,800 --> 00:07:48,600
Speaker 14: they're at the wrong house, a subject came out on

153
00:07:48,680 --> 00:07:53,320
Speaker 14: his Porsch for whatever reason and fired two shots, one

154
00:07:53,320 --> 00:07:56,080
Speaker 14: of which struck the vehicle that Kaylin was in.

155
00:07:56,400 --> 00:07:59,520
Speaker 3: Sheriff Murphy says the homeowner, sixty five year old Kevin Monahan,

156
00:07:59,600 --> 00:08:02,840
Speaker 3: is in Today. President Joe Biden spoke with sixteen year

157
00:08:02,840 --> 00:08:05,880
Speaker 3: old Ralph Yarrel, the black teenager who was shouting wounded

158
00:08:05,960 --> 00:08:10,000
Speaker 3: last week after mistakenly ringing the wrong doorbell. Prosecutors in

159
00:08:10,040 --> 00:08:13,120
Speaker 3: Clay County, Missouri charged Andrew Lester, the eighty four year

160
00:08:13,160 --> 00:08:16,280
Speaker 3: old of White, Kansas City homeowner who allegedly shot Yarrow.

161
00:08:16,600 --> 00:08:20,240
Speaker 3: The NYPD says the last of three suspects wanted in

162
00:08:20,280 --> 00:08:23,480
Speaker 3: the drugging deaths of at least two people that's been arrested.

163
00:08:23,720 --> 00:08:27,600
Speaker 3: Thirty five year old Jaquan Hamilton faces charges. Police say

164
00:08:27,760 --> 00:08:30,920
Speaker 3: they had linked dozens of druggings, including seven fatal overdoses,

165
00:08:30,960 --> 00:08:34,920
Speaker 3: to robberies around nightclubs in Manhattan. Jury selection is expected

166
00:08:34,960 --> 00:08:37,400
Speaker 3: to begin this morning in the one point six billion

167
00:08:37,480 --> 00:08:41,360
Speaker 3: dollar defamation case between Fox News and Dominion Voting Systems.

168
00:08:41,679 --> 00:08:44,240
Speaker 3: The start of the trial was delayed yesterday after talk

169
00:08:44,280 --> 00:08:46,880
Speaker 3: of a possible last minute settlement, but now it is

170
00:08:46,920 --> 00:08:49,880
Speaker 3: set to begin. Secretary of State Anthony B. Lincoln's as

171
00:08:49,920 --> 00:08:52,120
Speaker 3: Americans were caught up in the violence in Sudan.

172
00:08:52,520 --> 00:08:54,960
Speaker 15: We had an American diplomatic convoy that was fired on.

173
00:08:56,200 --> 00:09:00,160
Speaker 15: All of our people are safe and unharmed. But this

174
00:09:00,280 --> 00:09:05,160
Speaker 15: action was reckless, it was irresponsible and of course unsafe.

175
00:09:05,440 --> 00:09:08,640
Speaker 3: Secretary Blinkin says, it's believe the attack came from rapid

176
00:09:08,679 --> 00:09:11,400
Speaker 3: support for us as who were battling the Sudanese military.

177
00:09:11,679 --> 00:09:13,960
Speaker 3: Global News twenty four hours a day, powered by more

178
00:09:13,960 --> 00:09:16,320
Speaker 3: than twenty seven hundred journalist manaalist and over one hundred

179
00:09:16,360 --> 00:09:17,920
Speaker 3: twenty countries. I'm Michael Barr.

180
00:09:18,040 --> 00:09:25,280
Speaker 13: This is Bloomberg, Nathan, Michael, thanks time now for the

181
00:09:25,280 --> 00:09:26,439
Speaker 13: Bloomberg Sports Update.

182
00:09:26,480 --> 00:09:28,120
Speaker 2: For that, we welcome John Stenshower.

183
00:09:28,640 --> 00:09:29,520
Speaker 16: All right, thanks Nathan.

184
00:09:29,559 --> 00:09:32,960
Speaker 4: It's the first time since nineteen ninety four all five

185
00:09:33,040 --> 00:09:35,720
Speaker 4: New York Area NBA NHL teams are in the playoffs.

186
00:09:35,760 --> 00:09:37,320
Speaker 16: That includes the Nets and Islanders.

187
00:09:37,360 --> 00:09:38,880
Speaker 4: They both lost on the road, and Net's had a

188
00:09:38,880 --> 00:09:42,520
Speaker 4: ten point lead at Philadelphia. Sixers switched to a zone defense,

189
00:09:42,600 --> 00:09:45,760
Speaker 4: Nets held only fourteen points to the third quarter. Philly

190
00:09:45,800 --> 00:09:49,280
Speaker 4: won ninety six eighty four tyres MAXI thirty three points.

191
00:09:49,320 --> 00:09:52,000
Speaker 4: Cam Johnson led Brooklyn with twenty eight and the Sixers

192
00:09:52,080 --> 00:09:54,920
Speaker 4: lead the series to nothing. Sacramento again beat Golden State.

193
00:09:55,000 --> 00:09:57,360
Speaker 4: Kings are up to nothing next, looking to go up

194
00:09:57,360 --> 00:10:01,160
Speaker 4: to ZIP. Tonight in Cleveland, Islanders lost Carolina two to one,

195
00:10:01,200 --> 00:10:03,560
Speaker 4: a game that was scoreless for the last thirty seven minutes.

196
00:10:03,840 --> 00:10:08,040
Speaker 4: Bruins beat Florida overtime wins for Minnesota and LA. Rangers

197
00:10:08,080 --> 00:10:11,040
Speaker 4: and Devils begin their series tonight in Newark's seventh time

198
00:10:11,120 --> 00:10:13,720
Speaker 4: they've met in the postseason, the most memorable being the

199
00:10:13,760 --> 00:10:15,920
Speaker 4: epic series in nineteen ninety four.

200
00:10:16,400 --> 00:10:17,600
Speaker 16: Rangers coach drug Glant.

201
00:10:17,679 --> 00:10:19,520
Speaker 17: I know we're playing the team that I see is

202
00:10:19,559 --> 00:10:22,319
Speaker 17: pretty competitive, and this year we can go either way.

203
00:10:22,360 --> 00:10:24,079
Speaker 17: They're a real good hockey team. I think we're real

204
00:10:24,120 --> 00:10:26,680
Speaker 17: good hockey team. We match up real well from what

205
00:10:26,760 --> 00:10:29,559
Speaker 17: I see, So I don't worry about all the experience

206
00:10:29,600 --> 00:10:32,199
Speaker 17: and expectations and my job to get our team to

207
00:10:32,240 --> 00:10:33,800
Speaker 17: play the best weekend and hopefully will be.

208
00:10:34,240 --> 00:10:36,280
Speaker 4: Last time the Devils won a series was twenty twelve

209
00:10:36,320 --> 00:10:37,560
Speaker 4: when they beat the Rangers.

210
00:10:37,559 --> 00:10:39,400
Speaker 16: Fifth straight win for the Mets. They won a back

211
00:10:39,440 --> 00:10:40,560
Speaker 16: and forth game in LA.

212
00:10:40,520 --> 00:10:43,960
Speaker 4: Eight to six over the Dodgers branded MLPEE Alonzo Jeff

213
00:10:44,000 --> 00:10:46,160
Speaker 4: McNeil all with three hits. Daniel Vogo back at two

214
00:10:46,200 --> 00:10:49,360
Speaker 4: on ome A, a familiar script for ex Mets ace Jacob

215
00:10:49,400 --> 00:10:52,480
Speaker 4: de Grom, now with Texas four hitless innings and then

216
00:10:52,520 --> 00:10:55,360
Speaker 4: he left with a wrist injury. Jalen Hurts cash get

217
00:10:55,400 --> 00:10:58,199
Speaker 4: on his breakout season, the Eagles quarterback, now the highest

218
00:10:58,200 --> 00:10:58,920
Speaker 4: paid player of.

219
00:10:58,840 --> 00:11:01,880
Speaker 16: The NFL, making fifth one million a year. John S

220
00:11:01,920 --> 00:11:03,320
Speaker 16: Dafiell are Bloomberg.

221
00:11:02,840 --> 00:11:08,320
Speaker 5: Sports Live from coast to coast, from New York to

222
00:11:08,400 --> 00:11:13,240
Speaker 5: San Francisco, Boston to Washington, DC, nationwide on siriusxam the

223
00:11:13,320 --> 00:11:17,920
Speaker 5: Bloomberg Business Appen Bloomberg dot com. This is Bloomberg Daybreak.

224
00:11:19,000 --> 00:11:21,280
Speaker 5: Good morning, I'm Nathan Hager. It is a morning with

225
00:11:21,440 --> 00:11:23,760
Speaker 5: bank earnings back in focus. We're going to be looking

226
00:11:23,760 --> 00:11:25,760
Speaker 5: for more clues about the impact of the regional bank

227
00:11:25,800 --> 00:11:28,200
Speaker 5: turmoil in a little less than two hours, actually, when

228
00:11:28,280 --> 00:11:31,960
Speaker 5: Bank of America and Goldman Sachs come out next with

229
00:11:32,040 --> 00:11:33,400
Speaker 5: their first quarter results.

230
00:11:33,480 --> 00:11:35,880
Speaker 2: Let's get a preview now. We're joined by Charlie Wells,

231
00:11:36,320 --> 00:11:39,439
Speaker 2: finance reporter for Bloomberg News. Charlie, it's good to speak

232
00:11:39,440 --> 00:11:41,760
Speaker 2: with you this morning. Of course, we already saw that

233
00:11:41,880 --> 00:11:45,280
Speaker 2: nice jump in net interest income from the three banks

234
00:11:45,320 --> 00:11:48,320
Speaker 2: that reported last Friday. Any reason to think things are

235
00:11:48,320 --> 00:11:50,080
Speaker 2: going to be any different for the next two coming up?

236
00:11:50,440 --> 00:11:51,000
Speaker 16: Good question.

237
00:11:51,040 --> 00:11:53,440
Speaker 11: I mean the stakes certainly are high, just a few

238
00:11:53,480 --> 00:11:55,960
Speaker 11: weeks after some of the most dramatic news in the

239
00:11:56,000 --> 00:11:59,240
Speaker 11: banking industries since the financial crisis, and we really are

240
00:11:59,280 --> 00:12:02,280
Speaker 11: getting sort of two different banks reporting today that sort

241
00:12:02,280 --> 00:12:06,160
Speaker 11: of represent different themes in the industry. So with Goldman,

242
00:12:06,200 --> 00:12:10,079
Speaker 11: you know, really heavily focused on investment banking, the theme

243
00:12:10,200 --> 00:12:12,680
Speaker 11: over the past year really has been a slow down

244
00:12:12,800 --> 00:12:16,800
Speaker 11: in IPO activity and mergers and acquisitions. The expectation is

245
00:12:16,840 --> 00:12:19,880
Speaker 11: that will continue. There also will be a focus on

246
00:12:19,920 --> 00:12:23,720
Speaker 11: Goldman's need to cut expenses. So before all of the

247
00:12:23,800 --> 00:12:26,840
Speaker 11: regional bank crises happened last month, really there was this

248
00:12:26,880 --> 00:12:30,439
Speaker 11: focus on that one billion dollar cost cutting plan at Goldman,

249
00:12:30,760 --> 00:12:33,280
Speaker 11: So any movement that they could make could bode well

250
00:12:33,360 --> 00:12:36,520
Speaker 11: for the bank. Finally, thinking about trading, so the end

251
00:12:36,559 --> 00:12:39,680
Speaker 11: of the last quarter had some volatility, which could help

252
00:12:39,800 --> 00:12:42,600
Speaker 11: trading groups at Goldman. Now if you pivot to Bank

253
00:12:42,640 --> 00:12:45,360
Speaker 11: of America, you get a very different bank, right, Nathan.

254
00:12:45,559 --> 00:12:47,320
Speaker 11: It goes back to some of those banks that reported

255
00:12:47,400 --> 00:12:50,600
Speaker 11: last week, more similar to JP Morgan, where we did

256
00:12:50,640 --> 00:12:53,040
Speaker 11: see that good news about net interest income. We actually

257
00:12:53,080 --> 00:12:56,600
Speaker 11: did see some good news about deposit inflows, even an

258
00:12:56,720 --> 00:12:59,760
Speaker 11: uptick at JP Morgan. So Bank of America has a

259
00:12:59,760 --> 00:13:02,880
Speaker 11: pre high bar to follow their Yeah, I would have

260
00:13:02,960 --> 00:13:03,560
Speaker 11: to say so.

261
00:13:03,760 --> 00:13:05,880
Speaker 2: I mean, you will have to think that Bank of

262
00:13:05,920 --> 00:13:10,679
Speaker 2: America could benefit pretty substantially from some of those depositor

263
00:13:10,760 --> 00:13:14,800
Speaker 2: inflows given its pretty strong focus on the consumer side

264
00:13:14,840 --> 00:13:15,800
Speaker 2: of the banking business.

265
00:13:16,080 --> 00:13:17,920
Speaker 11: That's a really good point and one of the points

266
00:13:17,920 --> 00:13:20,160
Speaker 11: that analysts have been making over the past few weeks

267
00:13:20,200 --> 00:13:23,400
Speaker 11: has just been about the fact that size for these

268
00:13:23,440 --> 00:13:26,960
Speaker 11: big banks really seems to have mattered over the tumultuous

269
00:13:27,040 --> 00:13:30,760
Speaker 11: few weeks when depositors really were concerned about the health

270
00:13:30,760 --> 00:13:33,040
Speaker 11: and safety of banks. You know, whether or not those

271
00:13:33,080 --> 00:13:37,480
Speaker 11: concerns were founded, we certainly have seen movements to some

272
00:13:37,600 --> 00:13:40,040
Speaker 11: of the larger banks. So JP morgan I mentioned they

273
00:13:40,120 --> 00:13:43,920
Speaker 11: actually saw an optic of one point six percent in deposits,

274
00:13:44,120 --> 00:13:46,800
Speaker 11: and that, funnily enough, bucks a trend that we've been

275
00:13:46,840 --> 00:13:49,240
Speaker 11: seeing over the past year, which was the movement of

276
00:13:49,320 --> 00:13:53,439
Speaker 11: deposits to higher yielding accounts, to higher yielding vehicles, to

277
00:13:53,600 --> 00:13:57,560
Speaker 11: money market funds, to treasuries, even to Series one savings bonds,

278
00:13:57,559 --> 00:13:59,480
Speaker 11: which we have written about so many times. It had

279
00:13:59,559 --> 00:14:02,680
Speaker 11: happened so popular with consumers. So you know, there could

280
00:14:02,760 --> 00:14:05,120
Speaker 11: be a surprise with Bank of America. Actually it may

281
00:14:05,240 --> 00:14:08,840
Speaker 11: not be as good on the deposit front as some expect,

282
00:14:09,400 --> 00:14:11,559
Speaker 11: and that is certainly a concern, and of course they have,

283
00:14:12,360 --> 00:14:14,679
Speaker 11: you know, some stiff competition. Now.

284
00:14:14,760 --> 00:14:16,960
Speaker 2: Yeah, there is a lot of attention now on these

285
00:14:17,320 --> 00:14:19,960
Speaker 2: high yielding accounts. I mean, we just saw that story

286
00:14:20,040 --> 00:14:23,720
Speaker 2: yesterday with Goldman Sex getting ready to report here and

287
00:14:23,960 --> 00:14:27,000
Speaker 2: coming in with this partnership with Apple, of all places

288
00:14:27,520 --> 00:14:31,200
Speaker 2: offering a high yield savings account, are we in a

289
00:14:31,360 --> 00:14:34,720
Speaker 2: place where we're looking at kind of an arms race

290
00:14:34,800 --> 00:14:38,720
Speaker 2: when it comes to trying to attract customers with higher

291
00:14:38,760 --> 00:14:41,920
Speaker 2: interest rates, not just with the banks but with FinTechs.

292
00:14:42,280 --> 00:14:45,800
Speaker 11: You know that Apple disclosure may be an opening salvo

293
00:14:46,000 --> 00:14:48,960
Speaker 11: in an arms race. Four point one five percent for

294
00:14:49,040 --> 00:14:52,040
Speaker 11: a savings account there that is certainly going to put

295
00:14:52,080 --> 00:14:55,160
Speaker 11: pressure on other banks. That figure four point one five

296
00:14:55,160 --> 00:14:58,720
Speaker 11: percent is ten times the national average. And this was

297
00:14:58,760 --> 00:15:00,760
Speaker 11: a concern that a lot of re regional banks had

298
00:15:00,760 --> 00:15:03,600
Speaker 11: that some of these megabanks would start pushing up the

299
00:15:03,640 --> 00:15:06,640
Speaker 11: amount that they could give to depositors, which would push

300
00:15:06,680 --> 00:15:10,360
Speaker 11: the deposits at those regional banks to come under pressure,

301
00:15:10,400 --> 00:15:12,760
Speaker 11: potentially lose deposits or actually or lose some of that

302
00:15:12,840 --> 00:15:16,000
Speaker 11: net interest income. Now, what we saw last week with

303
00:15:16,080 --> 00:15:20,000
Speaker 11: some of the megabanks was less of an upward pressure

304
00:15:20,040 --> 00:15:22,600
Speaker 11: than some may have feared. We'll see what happens with

305
00:15:22,640 --> 00:15:25,520
Speaker 11: Thank America, because, as you say, they do have so

306
00:15:25,640 --> 00:15:28,560
Speaker 11: many consumer deposits, they may be feeling pressure there. But

307
00:15:28,760 --> 00:15:31,360
Speaker 11: I do I would have to agree with you. I

308
00:15:31,360 --> 00:15:33,640
Speaker 11: think this is the beginning of a new era that

309
00:15:33,720 --> 00:15:36,280
Speaker 11: we don't necessarily know how it will end, because it's

310
00:15:36,320 --> 00:15:37,800
Speaker 11: been a while since we've been in such a high

311
00:15:37,880 --> 00:15:40,440
Speaker 11: rate environment. Also, the last time we were in a

312
00:15:40,520 --> 00:15:43,320
Speaker 11: similar environment, there was not social media, there was not

313
00:15:43,360 --> 00:15:46,600
Speaker 11: the ability to transfer money quite as quickly as it

314
00:15:46,640 --> 00:15:48,880
Speaker 11: can be transferred now. So this could bring some surprises.

315
00:15:49,040 --> 00:15:51,360
Speaker 2: Only about thirty seconds left here, Charlie. But if we

316
00:15:51,440 --> 00:15:54,240
Speaker 2: start to see this race continue, what could it mean

317
00:15:54,320 --> 00:15:57,680
Speaker 2: for margins for some of these banks, If they're competing

318
00:15:57,760 --> 00:16:02,040
Speaker 2: to raise deposit ray, what could that mean for their profits?

319
00:16:02,120 --> 00:16:04,600
Speaker 11: It could certainly put them under pressure. And deposits are

320
00:16:04,680 --> 00:16:06,520
Speaker 11: so important for banks, and they've in a lot of

321
00:16:06,560 --> 00:16:09,440
Speaker 11: ways been taken for granted. You know, they're effectively some

322
00:16:09,480 --> 00:16:12,440
Speaker 11: of the cheapest funding that they can gap for other activities.

323
00:16:12,640 --> 00:16:14,720
Speaker 11: And if those start to go, you know that deposit

324
00:16:14,800 --> 00:16:18,320
Speaker 11: beta will shift and they'll potentially have to pay more

325
00:16:18,360 --> 00:16:21,840
Speaker 11: to depositors or risk flight. And as we've seen, it's

326
00:16:21,880 --> 00:16:25,080
Speaker 11: easier and easier to take flight of that capital these days.

327
00:16:27,560 --> 00:16:30,640
Speaker 2: This is Bloomberg Daybreak Today, your morning brief on the

328
00:16:30,680 --> 00:16:34,200
Speaker 2: stories making news from Wall Street to Washington and beyond.

329
00:16:34,360 --> 00:16:37,160
Speaker 1: Look for us on your podcast feed at six am

330
00:16:37,240 --> 00:16:40,880
Speaker 1: Eastern each morning on Apple, Spotify, and anywhere else you

331
00:16:40,960 --> 00:16:42,080
Speaker 1: get your podcasts.

332
00:16:42,240 --> 00:16:44,920
Speaker 2: You can also listen live each morning starting at five

333
00:16:45,000 --> 00:16:47,640
Speaker 2: am Wall Street Time, on Bloomberg eleven three to zero

334
00:16:47,640 --> 00:16:50,520
Speaker 2: in New York, Bloomberg ninety nine to one in Washington,

335
00:16:50,600 --> 00:16:53,440
Speaker 2: Bloomberg one oh six y one in Boston, and Bloomberg

336
00:16:53,520 --> 00:16:55,200
Speaker 2: ninety sixty in San Francisco.

337
00:16:55,600 --> 00:16:58,760
Speaker 1: Our flagship New York station is also available on your

338
00:16:58,800 --> 00:17:03,880
Speaker 1: Amazon Election device. Just say Alexa play Bloomberg eleven thirty.

339
00:17:03,920 --> 00:17:06,800
Speaker 2: Plus listen coast to coast on the Bloomberg Business app,

340
00:17:06,880 --> 00:17:10,720
Speaker 2: serious XM Channel one nineteen, the iHeartRadio app, and on

341
00:17:10,840 --> 00:17:14,399
Speaker 2: Bloomberg dot com. I'm Nathan Hager and I'm Karen Moscow.

342
00:17:14,480 --> 00:17:17,280
Speaker 1: Join us again tomorrow morning for all the news you

343
00:17:17,359 --> 00:17:20,600
Speaker 1: need to start your day right here on Bloomberg Daybreak