Speaker 1: From the Bloomberg INTERACTI Burgers Studios. This is Bloomberg day
Speaker 1: Break for Tuesday, April eighteenth.
Speaker 2: Coming up today, Big bank earnings continue with Goldman Sachs
Speaker 2: and Bank of America reporting.
Speaker 1: The Group of Seven Nations vow to support Ukraine for
Speaker 1: as long as it takes.
Speaker 2: Elon Musk says he wants to take on Microsoft and
Speaker 2: Google in artificial intelligence.
Speaker 1: And Tim Cook opens Apple's first store in India.
Speaker 3: Trial begins on the Fox News Dominion voting machine case.
Speaker 3: Plus a secret illegal police station in Chinatown has been
Speaker 3: shut down. I'm Michael Varn. We'll explain straight ahead.
Speaker 4: I'm John Stash, Aaron Sports Met's beat. The Dodgers playoff
Speaker 4: losses for the Nets and Islanders. The Knicks play the
Speaker 4: Calves tonight. The Rangers play the Devilment.
Speaker 5: That's all straight ahead on Bloomberg day Break, The Business
Speaker 5: news you need to starn your day in just one
Speaker 5: fifteen minute podcast each morning on Apples, Spotify, The Bloomberg
Speaker 5: Business Appen everywhere you get your podcasts.
Speaker 2: Good morning, I'm Nathan.
Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're
Speaker 1: following today.
Speaker 2: Let's begin with earnings. This morning too. Of the biggest
Speaker 2: banks on Wall Street report today, and we get a
Speaker 2: preview from Bloomberg's Shanali Bassic.
Speaker 6: We'll wait diar from Bank of America to c if
Speaker 6: it'll increase its expectations for net interest income this year.
Speaker 6: Remember a massive rival, JP Morgan already increased their expectation
Speaker 6: for lending revenue by billions of dollars. We'll also hear
Speaker 6: from Goldman Sachs. And at Goldman they have one of
Speaker 6: the biggest fixed income houses on Wall Street. JP Morgan
Speaker 6: and City Group already posted jumps in that business that
Speaker 6: were bigger than Wall Street expected. We'll also here from
Speaker 6: BNY Mellon and Western Alliance Bank. The big story this
Speaker 6: week will be how regional banks and other big financial
Speaker 6: services firms are being impacted by the rise in interest rates.
Speaker 2: Bloomberg Shinali Basic says, look for Bank of America's earnings
Speaker 2: at six forty five am Wall Street time. Goldman Sachs
Speaker 2: reports at seven thirty.
Speaker 1: Well, turning to the global economy now, Nathan, we got
Speaker 1: a surprise in the UK. Overnight growth unexpectedly accelerated, with
Speaker 1: average earnings rising six point six percent in the three
Speaker 1: months through February. That was quicker than the six point
Speaker 1: two percent pace that was expected. Bloombergy's a senior UK economist,
Speaker 1: Dan Hansen says the data is now sending a clear
Speaker 1: message to the Bank of England.
Speaker 7: This tips the balance sorts them hiking in May. This
Speaker 7: is such a big surprise relative to our forecast, and
Speaker 7: we think relative to their forecasts. I think even if
Speaker 7: you do get a slow down in inflation tomorrow from
Speaker 7: ten point four percent, we're expecting nine point eight percent,
Speaker 7: it's obviously still extremely high relative to a two percent target.
Speaker 1: And Bloombergy's senior UK economist Dan Hanson notes the NEXTBOE
Speaker 1: meeting comes on May eleventh.
Speaker 2: The economic data are also in focus in Asia. Karen
Speaker 2: China's economy grew four and a half percent in the
Speaker 2: first quarter. That's the fastest pace in a year, but
Speaker 2: the monthly data for March came in mixed and Bloomberg
Speaker 2: Daybreak Asia anchor Brian Curtis has more from Hong Kong.
Speaker 8: Some strong data here and some that's disappointing. GDP expanding
Speaker 8: four point five percent from a year earlier was a surprise,
Speaker 8: higher than the estimate of four percent retail sales jumping
Speaker 8: ten point six percent in March from a year ago,
Speaker 8: and that was stronger than the estimate of seven point
Speaker 8: five percent. However, industrial output rising just three point nine percent,
Speaker 8: weaker than forecast, and fixed asset investment also lower than expected.
Speaker 8: Bloomberg Economics says consumption is set to remain strong this
Speaker 8: year and that may just be the jewel of this
Speaker 8: big set of data. In Hong Kong, Brian Curtis Bloomberg Daybreak.
Speaker 1: Right, Brian thanks Well. Geopolitics is in focus in Japan today.
Speaker 1: The Group of Seven Nations vound to support Ukraine for
Speaker 1: as long as it takes in its fight against Russia,
Speaker 1: while also calling for greater engagement which China. Bloomberg's Amy
Speaker 1: Morris has details from our ninety nine to one newsroom
Speaker 1: in Washington.
Speaker 9: The Block condemned Russia's war against Ukraine, reiterated support for
Speaker 9: Ukraine's peace plan, and slammed Russia's irresponsible nuclear rhetoric. The
Speaker 9: G seven ministers also said they recognized the importance of
Speaker 9: engaging candidly with China and the need to work together
Speaker 9: on common interests, while calling for a peaceful resolution of
Speaker 9: Taiwan related issues.
Speaker 1: Now.
Speaker 9: The language on China was softened as the group tries
Speaker 9: to project unity after Emmanuel Macrone's recent trip to Beijing,
Speaker 9: when the French leader said the European Union should avoid
Speaker 9: being dragged into a dispute with China by the US.
Speaker 9: In Washington, I Maymy Moore as Bloomberg Daybreak.
Speaker 2: Amy, Thanks. We have an update this morning on the
Speaker 2: latest mission from SpaceX. The company says it'll try again
Speaker 2: to launch its massive starship on Thursday. Bloomberg's Ed Baxter reports.
Speaker 10: The crew says it's using the malfunction valve that scuttled
Speaker 10: yesterday's launch as a valuable learning experience.
Speaker 11: We're learning things today about the integrated tasks that are
Speaker 11: going to set us up for success in a future attempt.
Speaker 10: As they tested mechanisms down to a hold of T
Speaker 10: minus forty seconds. This is the rocket that Musk feels
Speaker 10: will ultimately get people to Mars, but this is the
Speaker 10: first attempt to even get it into outer space. So
Speaker 10: Elon Musk said that four twenty is his favorite day
Speaker 10: of the year, and there it is in San Francisco.
Speaker 10: I'm at Baxter Bloomberg Gay Break Europe.
Speaker 1: All right, and thank you well. Space isn't the only
Speaker 1: thing on Elon Musk's mind today. He's also talking about
Speaker 1: plans to get into artificial intelligence that Tesla on Twitter.
Speaker 1: CEO says he wants to create a third option to
Speaker 1: rival Microsoft's Open AI and Alphabet's Deep Mind.
Speaker 12: I'm going to thought something which you call truth GBT
Speaker 12: or a maximum truth seeking AI that tries to understand
Speaker 12: the nature of the universe.
Speaker 1: In an interview with Tucker Carlson on Fox News, Elon
Speaker 1: Musk says bots like chat GPT are too politically correct.
Speaker 1: He says a truth seeking AI, as he puts it,
Speaker 1: would be less likely to annihilate humans.
Speaker 2: Well, Karen another tech CEOs in the spotlight this morning.
Speaker 2: Tim Cook has officially opened Apple's first company owned store
Speaker 2: in India, and we get the details live from Bloomberg's
Speaker 2: John Tucker, John and Nathan.
Speaker 12: Tim Cook beamed took selfies and hug customers at the
Speaker 12: new Apple store in Mumbai. He's got good reason to smile.
Speaker 12: India is the world's second biggest mobile market with one
Speaker 12: point four billion potential customers. Oh, it's been years in
Speaker 12: the works because Apples had to jump through a lot
Speaker 12: of hoops. They had to meet regulators demands, including sourcing
Speaker 12: some of the products locally. Right now, only four percent
Speaker 12: of India's smartphone users have iPhones, and even with that penetration,
Speaker 12: iPhone sales in the last twelve months, we're almost six
Speaker 12: billion dollars live in New York I, John Tucker, Bloomberg Daybreak.
Speaker 1: All right, John, thank you. And Apple is also banking
Speaker 1: on another way to make money. It's teaming up with
Speaker 1: Goldman Sachs to offer a high yield savings account.
Speaker 2: It's fifty degrees in New York. It's going to be
Speaker 2: breezy and continued cool today with highs in the upper fifties.
Speaker 2: We get down to around forty five tonight under a
Speaker 2: probably to mostly cloudy skinnes And now it's time to
Speaker 2: take a look at some of the other stories.
Speaker 13: Making news in New York and around the world with
Speaker 13: Bloomberg s. Michel bar Good morning, Michael, Good morning, Nathan.
Speaker 13: Federal authorities say two men were arrested for operating an
Speaker 13: illegal secret police station on behalf of the Chinese government
Speaker 13: in Manhattan. Authorities rate at the so called station on
Speaker 13: East Broadway in Chinatown. Official say more than three dozen
Speaker 13: members of China's National police also faced charges accusing them
Speaker 13: of creating and using fake social media accounts to locate
Speaker 13: and harass dissidents. In the US, a twenty year old
Speaker 13: woman was shot and killed in upstate New York over
Speaker 13: the weekend after the car she was pulled in to
Speaker 13: the wrong driveway. She says that police say that Caitlin
Speaker 13: Gillis was with three people headed to a friend's house
Speaker 13: when they ended up at the wrong house in Hebron,
Speaker 13: Washington County. Sheriff Jeff Murphy.
Speaker 14: While they were leaving the residents, once they determined that
Speaker 14: they're at the wrong house, a subject came out on
Speaker 14: his Porsch for whatever reason and fired two shots, one
Speaker 14: of which struck the vehicle that Kaylin was in.
Speaker 3: Sheriff Murphy says the homeowner, sixty five year old Kevin Monahan,
Speaker 3: is in Today. President Joe Biden spoke with sixteen year
Speaker 3: old Ralph Yarrel, the black teenager who was shouting wounded
Speaker 3: last week after mistakenly ringing the wrong doorbell. Prosecutors in
Speaker 3: Clay County, Missouri charged Andrew Lester, the eighty four year
Speaker 3: old of White, Kansas City homeowner who allegedly shot Yarrow.
Speaker 3: The NYPD says the last of three suspects wanted in
Speaker 3: the drugging deaths of at least two people that's been arrested.
Speaker 3: Thirty five year old Jaquan Hamilton faces charges. Police say
Speaker 3: they had linked dozens of druggings, including seven fatal overdoses,
Speaker 3: to robberies around nightclubs in Manhattan. Jury selection is expected
Speaker 3: to begin this morning in the one point six billion
Speaker 3: dollar defamation case between Fox News and Dominion Voting Systems.
Speaker 3: The start of the trial was delayed yesterday after talk
Speaker 3: of a possible last minute settlement, but now it is
Speaker 3: set to begin. Secretary of State Anthony B. Lincoln's as
Speaker 3: Americans were caught up in the violence in Sudan.
Speaker 15: We had an American diplomatic convoy that was fired on.
Speaker 15: All of our people are safe and unharmed. But this
Speaker 15: action was reckless, it was irresponsible and of course unsafe.
Speaker 3: Secretary Blinkin says, it's believe the attack came from rapid
Speaker 3: support for us as who were battling the Sudanese military.
Speaker 3: Global News twenty four hours a day, powered by more
Speaker 3: than twenty seven hundred journalist manaalist and over one hundred
Speaker 3: twenty countries. I'm Michael Barr.
Speaker 13: This is Bloomberg, Nathan, Michael, thanks time now for the
Speaker 13: Bloomberg Sports Update.
Speaker 2: For that, we welcome John Stenshower.
Speaker 16: All right, thanks Nathan.
Speaker 4: It's the first time since nineteen ninety four all five
Speaker 4: New York Area NBA NHL teams are in the playoffs.
Speaker 16: That includes the Nets and Islanders.
Speaker 4: They both lost on the road, and Net's had a
Speaker 4: ten point lead at Philadelphia. Sixers switched to a zone defense,
Speaker 4: Nets held only fourteen points to the third quarter. Philly
Speaker 4: won ninety six eighty four tyres MAXI thirty three points.
Speaker 4: Cam Johnson led Brooklyn with twenty eight and the Sixers
Speaker 4: lead the series to nothing. Sacramento again beat Golden State.
Speaker 4: Kings are up to nothing next, looking to go up
Speaker 4: to ZIP. Tonight in Cleveland, Islanders lost Carolina two to one,
Speaker 4: a game that was scoreless for the last thirty seven minutes.
Speaker 4: Bruins beat Florida overtime wins for Minnesota and LA. Rangers
Speaker 4: and Devils begin their series tonight in Newark's seventh time
Speaker 4: they've met in the postseason, the most memorable being the
Speaker 4: epic series in nineteen ninety four.
Speaker 16: Rangers coach drug Glant.
Speaker 17: I know we're playing the team that I see is
Speaker 17: pretty competitive, and this year we can go either way.
Speaker 17: They're a real good hockey team. I think we're real
Speaker 17: good hockey team. We match up real well from what
Speaker 17: I see, So I don't worry about all the experience
Speaker 17: and expectations and my job to get our team to
Speaker 17: play the best weekend and hopefully will be.
Speaker 4: Last time the Devils won a series was twenty twelve
Speaker 4: when they beat the Rangers.
Speaker 16: Fifth straight win for the Mets. They won a back
Speaker 16: and forth game in LA.
Speaker 4: Eight to six over the Dodgers branded MLPEE Alonzo Jeff
Speaker 4: McNeil all with three hits. Daniel Vogo back at two
Speaker 4: on ome A, a familiar script for ex Mets ace Jacob
Speaker 4: de Grom, now with Texas four hitless innings and then
Speaker 4: he left with a wrist injury. Jalen Hurts cash get
Speaker 4: on his breakout season, the Eagles quarterback, now the highest
Speaker 4: paid player of.
Speaker 16: The NFL, making fifth one million a year. John S
Speaker 16: Dafiell are Bloomberg.
Speaker 5: Sports Live from coast to coast, from New York to
Speaker 5: San Francisco, Boston to Washington, DC, nationwide on siriusxam the
Speaker 5: Bloomberg Business Appen Bloomberg dot com. This is Bloomberg Daybreak.
Speaker 5: Good morning, I'm Nathan Hager. It is a morning with
Speaker 5: bank earnings back in focus. We're going to be looking
Speaker 5: for more clues about the impact of the regional bank
Speaker 5: turmoil in a little less than two hours, actually, when
Speaker 5: Bank of America and Goldman Sachs come out next with
Speaker 5: their first quarter results.
Speaker 2: Let's get a preview now. We're joined by Charlie Wells,
Speaker 2: finance reporter for Bloomberg News. Charlie, it's good to speak
Speaker 2: with you this morning. Of course, we already saw that
Speaker 2: nice jump in net interest income from the three banks
Speaker 2: that reported last Friday. Any reason to think things are
Speaker 2: going to be any different for the next two coming up?
Speaker 16: Good question.
Speaker 11: I mean the stakes certainly are high, just a few
Speaker 11: weeks after some of the most dramatic news in the
Speaker 11: banking industries since the financial crisis, and we really are
Speaker 11: getting sort of two different banks reporting today that sort
Speaker 11: of represent different themes in the industry. So with Goldman,
Speaker 11: you know, really heavily focused on investment banking, the theme
Speaker 11: over the past year really has been a slow down
Speaker 11: in IPO activity and mergers and acquisitions. The expectation is
Speaker 11: that will continue. There also will be a focus on
Speaker 11: Goldman's need to cut expenses. So before all of the
Speaker 11: regional bank crises happened last month, really there was this
Speaker 11: focus on that one billion dollar cost cutting plan at Goldman,
Speaker 11: So any movement that they could make could bode well
Speaker 11: for the bank. Finally, thinking about trading, so the end
Speaker 11: of the last quarter had some volatility, which could help
Speaker 11: trading groups at Goldman. Now if you pivot to Bank
Speaker 11: of America, you get a very different bank, right, Nathan.
Speaker 11: It goes back to some of those banks that reported
Speaker 11: last week, more similar to JP Morgan, where we did
Speaker 11: see that good news about net interest income. We actually
Speaker 11: did see some good news about deposit inflows, even an
Speaker 11: uptick at JP Morgan. So Bank of America has a
Speaker 11: pre high bar to follow their Yeah, I would have
Speaker 11: to say so.
Speaker 2: I mean, you will have to think that Bank of
Speaker 2: America could benefit pretty substantially from some of those depositor
Speaker 2: inflows given its pretty strong focus on the consumer side
Speaker 2: of the banking business.
Speaker 11: That's a really good point and one of the points
Speaker 11: that analysts have been making over the past few weeks
Speaker 11: has just been about the fact that size for these
Speaker 11: big banks really seems to have mattered over the tumultuous
Speaker 11: few weeks when depositors really were concerned about the health
Speaker 11: and safety of banks. You know, whether or not those
Speaker 11: concerns were founded, we certainly have seen movements to some
Speaker 11: of the larger banks. So JP morgan I mentioned they
Speaker 11: actually saw an optic of one point six percent in deposits,
Speaker 11: and that, funnily enough, bucks a trend that we've been
Speaker 11: seeing over the past year, which was the movement of
Speaker 11: deposits to higher yielding accounts, to higher yielding vehicles, to
Speaker 11: money market funds, to treasuries, even to Series one savings bonds,
Speaker 11: which we have written about so many times. It had
Speaker 11: happened so popular with consumers. So you know, there could
Speaker 11: be a surprise with Bank of America. Actually it may
Speaker 11: not be as good on the deposit front as some expect,
Speaker 11: and that is certainly a concern, and of course they have,
Speaker 11: you know, some stiff competition. Now.
Speaker 2: Yeah, there is a lot of attention now on these
Speaker 2: high yielding accounts. I mean, we just saw that story
Speaker 2: yesterday with Goldman Sex getting ready to report here and
Speaker 2: coming in with this partnership with Apple, of all places
Speaker 2: offering a high yield savings account, are we in a
Speaker 2: place where we're looking at kind of an arms race
Speaker 2: when it comes to trying to attract customers with higher
Speaker 2: interest rates, not just with the banks but with FinTechs.
Speaker 11: You know that Apple disclosure may be an opening salvo
Speaker 11: in an arms race. Four point one five percent for
Speaker 11: a savings account there that is certainly going to put
Speaker 11: pressure on other banks. That figure four point one five
Speaker 11: percent is ten times the national average. And this was
Speaker 11: a concern that a lot of re regional banks had
Speaker 11: that some of these megabanks would start pushing up the
Speaker 11: amount that they could give to depositors, which would push
Speaker 11: the deposits at those regional banks to come under pressure,
Speaker 11: potentially lose deposits or actually or lose some of that
Speaker 11: net interest income. Now, what we saw last week with
Speaker 11: some of the megabanks was less of an upward pressure
Speaker 11: than some may have feared. We'll see what happens with
Speaker 11: Thank America, because, as you say, they do have so
Speaker 11: many consumer deposits, they may be feeling pressure there. But
Speaker 11: I do I would have to agree with you. I
Speaker 11: think this is the beginning of a new era that
Speaker 11: we don't necessarily know how it will end, because it's
Speaker 11: been a while since we've been in such a high
Speaker 11: rate environment. Also, the last time we were in a
Speaker 11: similar environment, there was not social media, there was not
Speaker 11: the ability to transfer money quite as quickly as it
Speaker 11: can be transferred now. So this could bring some surprises.
Speaker 2: Only about thirty seconds left here, Charlie. But if we
Speaker 2: start to see this race continue, what could it mean
Speaker 2: for margins for some of these banks, If they're competing
Speaker 2: to raise deposit ray, what could that mean for their profits?
Speaker 11: It could certainly put them under pressure. And deposits are
Speaker 11: so important for banks, and they've in a lot of
Speaker 11: ways been taken for granted. You know, they're effectively some
Speaker 11: of the cheapest funding that they can gap for other activities.
Speaker 11: And if those start to go, you know that deposit
Speaker 11: beta will shift and they'll potentially have to pay more
Speaker 11: to depositors or risk flight. And as we've seen, it's
Speaker 11: easier and easier to take flight of that capital these days.
Speaker 2: This is Bloomberg Daybreak Today, your morning brief on the
Speaker 2: stories making news from Wall Street to Washington and beyond.
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