WEBVTT - Bloomberg Daybreak: April 26, 2022 - Hour 1 (Radio) 0:00:02.759 --> 0:00:06.160 Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:06.240 --> 0:00:10.639 Daybreak for Tuesday, April two. Coming up this hour, Elon 0:00:10.720 --> 0:00:14.280 Musk pulls off one of the biggest leveraged buyouts in history. 0:00:14.360 --> 0:00:17.720 We have team coverage of his Twitter takeover, Microsoft and 0:00:17.760 --> 0:00:21.360 Apple leave the earning sporade today, and Russia's foreign minister 0:00:21.440 --> 0:00:25.000 warns the risk of nuclear war can't be underestimated. Resident 0:00:25.040 --> 0:00:28.200 Trump's legal troubles continue with New York's a G plus. 0:00:28.240 --> 0:00:31.200 The southern border remains closed for migrants after a judge 0:00:31.360 --> 0:00:34.519 kept titled thirty two in place. On Michael bar More Ahead, 0:00:35.080 --> 0:00:37.560 I'm John Stans shown sports. The next season is over, 0:00:37.640 --> 0:00:40.240 swept by the Celtics, a ninthin rally for the Mets 0:00:40.240 --> 0:00:45.760 to win in St. Louis. That's all trendy Ahead on 0:00:45.880 --> 0:00:51.520 Bloomberg Daybreak on Bloomberg eleven, Free on New York, Bloomberg one, Washington, 0:00:51.640 --> 0:00:55.280 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:55.320 --> 0:00:59.560 sixties and Francisco Sirius XM one nine team and around 0:00:59.560 --> 0:01:02.440 the world. Then Bloomberg Radio dot Com and via The 0:01:02.440 --> 0:01:09.600 Bloomberg Business. Good Morning, I'm Nathan Hagar. And I'm Karen. 0:01:09.680 --> 0:01:12.679 Moscow and US Dock Index futures are lower this morning. 0:01:12.680 --> 0:01:14.360 We're coming up to five o one on Wall Street, 0:01:14.360 --> 0:01:16.480 and we check the markets every fifteen minutes throughout the 0:01:16.480 --> 0:01:19.520 trading day. On Bloomberg, Guess and P futures down seven 0:01:19.560 --> 0:01:23.720 points down, futures down seventy six, nasdack futures down seventeen 0:01:23.800 --> 0:01:27.320 The tenure Treasury up six thirty seconds two points seven 0:01:27.440 --> 0:01:29.720 nine percent, and they yield on the two year two 0:01:29.760 --> 0:01:32.679 point six zero percent and nine max Screwed oil is 0:01:32.720 --> 0:01:36.080 down one point two percent. Nathan, Karen, We begin this 0:01:36.120 --> 0:01:39.440 morning with one of the biggest leveraged buyouts in history. 0:01:39.440 --> 0:01:42.839 Elon Musk has clinched a forty four billion dollar deal 0:01:42.880 --> 0:01:46.760 to take Twitter private. Investors will receive fifty four dollars 0:01:46.800 --> 0:01:49.360 and twenty cents for each Twitter share they own. We 0:01:49.480 --> 0:01:51.840 have team coverage for you this morning, starting with Ed 0:01:51.920 --> 0:01:55.160 Ludlow in our Bloomberg nine sixty newsroom in San Francisco. 0:01:55.680 --> 0:01:58.760 Ed has more on four changes Musk may make to 0:01:58.800 --> 0:02:01.840 the platform. Going for word, it's four main things. An 0:02:01.960 --> 0:02:04.640 edit button that is time sensitive. He's talks about that, 0:02:04.880 --> 0:02:08.400 removing bots from the platform. He's talks about that open 0:02:08.480 --> 0:02:11.680 sourcing the algorithm and looking at the underlying technology for Twitter, 0:02:11.960 --> 0:02:14.000 and then finally he's going to look at the issues 0:02:14.000 --> 0:02:16.440 of vans. Elon must basically framed it as being he 0:02:16.520 --> 0:02:19.359 was more in favor of timeouts than all out bands 0:02:19.400 --> 0:02:22.360 on the platform, Bloomberg said. Ludlow says the deal was 0:02:22.360 --> 0:02:25.520 approved unanimously by Twitter's board. It is expected to be 0:02:25.560 --> 0:02:28.880 completed later this year. So where will Elon must get 0:02:28.880 --> 0:02:32.079 the cash to buy Twitter? While Bloomberg's Rnita Young continues 0:02:32.120 --> 0:02:34.280 our team coverage and joins us Live in New York 0:02:34.320 --> 0:02:36.480 with that part of the story, Good morning Randa, Good 0:02:36.480 --> 0:02:39.880 morning care. And it's the twenty one billion dollar mystery. Now, 0:02:39.880 --> 0:02:42.720 there's little doubt Elon Musk can come up with the money. 0:02:42.760 --> 0:02:45.720 After all, the Bloomberg Billionaires Index shows he's the world's 0:02:45.800 --> 0:02:48.640 richest person with a fortune of two hundred fifty seven 0:02:48.680 --> 0:02:52.400 billion dollars. But Bloomberg estimates show Musk has just about 0:02:52.440 --> 0:02:55.600 three billion in cash and somewhat liquid assets, So that 0:02:55.680 --> 0:02:59.000 leaves him with at least three options for financing. One 0:02:59.000 --> 0:03:02.120 way find other investors who buy into his vision, and 0:03:02.160 --> 0:03:05.280 he's already hinted at this possibility. Another way, he could 0:03:05.280 --> 0:03:07.679 sell some of his steak in Tesla, but that will 0:03:07.760 --> 0:03:11.280 likely put the stock at risk. And Thirdly, since Musk 0:03:11.360 --> 0:03:14.880 is likely even richer than calculated by the Bloomberg Billionaires Index, 0:03:15.120 --> 0:03:17.520 he might not even need news sources of funding to 0:03:17.639 --> 0:03:20.920 cover the twenty one billion dollars. Live in New York. 0:03:21.000 --> 0:03:23.280 I'm really need a young Bloomberg daybreak. All right, we 0:03:23.320 --> 0:03:25.560 need to thank you now. Some lawmakers are pushing back 0:03:25.600 --> 0:03:28.919 against the buyout. Senator Elizabeth Warren is calling Musk's Twitter 0:03:28.960 --> 0:03:32.920 deal dangerous. Ed Baxtir continues our team coverage from our 0:03:32.960 --> 0:03:36.760 Bloomberg nine sixty newsroom in San Francisco. Musk and Warren 0:03:36.880 --> 0:03:40.160 are familiar foes. They've had battles over a number of issues, 0:03:40.160 --> 0:03:43.080 but Warren's verbi and share is very strong. She says 0:03:43.120 --> 0:03:46.480 the deal is dangerous for our democracy. She says, quote 0:03:46.480 --> 0:03:49.080 billionaires like Elon Musk played by a different set of 0:03:49.160 --> 0:03:52.960 rules than everyone else, accumulating power for their own gain. 0:03:53.480 --> 0:03:56.960 It's dangerous because one billionaire decides how millions of people 0:03:57.000 --> 0:04:00.160 will have an opportunity to communicate with each other. The 0:04:00.200 --> 0:04:03.760 deal has potential roadblocks, beginning with the SEC but this 0:04:03.800 --> 0:04:07.400 one threatens to be very heated. In San Francisco, I'm 0:04:07.400 --> 0:04:10.160 at Baxter Bloomberg Daybreak and thanks, and we have more 0:04:10.160 --> 0:04:12.400 analysis on the most Twitter deal coming up. In just 0:04:12.520 --> 0:04:15.040 a few minutes, will be speaking live with Wedbush Senior 0:04:15.080 --> 0:04:18.520 analyst Dan ives Well Under the latest on the war 0:04:18.680 --> 0:04:22.520 in Ukraine, Nathan Russian Foreign Minister Sergei Lavrov warnts the 0:04:22.640 --> 0:04:26.680 risk of nuclear war is real and can't be underestimated. 0:04:26.720 --> 0:04:29.880 That's after Defense Secretary Lloyd Austin said the US wants 0:04:29.920 --> 0:04:34.040 to see Russian forces weakened in Ukraine. This morning, Secretary 0:04:34.080 --> 0:04:37.520 Austin is pledging continued US support. Ukraine has done a 0:04:37.520 --> 0:04:43.440 magnificent job defending its sovereignty against Russia's unprovoked invasion. In 0:04:43.640 --> 0:04:47.280 Ukraine's valor and skill will go down in military history, 0:04:49.240 --> 0:04:51.680 and Defense Secretary Lloyd Austin spoke this morning from the 0:04:51.760 --> 0:04:54.720 Ramstein Air Base in Germany. Meantime, the White House says 0:04:54.720 --> 0:04:57.839 President Biden also is working on his next request for 0:04:58.040 --> 0:05:01.440 Ukraine aide to Congress. The Houses also taking action on 0:05:01.640 --> 0:05:05.040 COVID Karen. Just this morning, the Biden administration is announcing 0:05:05.040 --> 0:05:08.679 it will allow all pharmacies to order Fiser's COVID nineteen 0:05:08.720 --> 0:05:11.280 therapy pill as it looks to boost access to the 0:05:11.360 --> 0:05:15.080 drugs supply increases. Starting this week, tens of thousands of 0:05:15.080 --> 0:05:17.800 pharmacies will be able to order the drug. Pilson's have 0:05:17.839 --> 0:05:20.560 started the pandemic, Nathan. Global events and meetings have gone 0:05:20.640 --> 0:05:23.039 virtue all but now. FETCH chair j Powell is set 0:05:23.080 --> 0:05:25.760 to hold his first in person press conference since COVID 0:05:25.839 --> 0:05:28.960 emerged hell Me Live with reporters following the conclusion of 0:05:29.040 --> 0:05:32.280 next week's Today Policy Meeting. Inflation will be a main 0:05:32.360 --> 0:05:34.880 focus for Powell at that news conference. Karen and data 0:05:34.920 --> 0:05:39.000 this morning show prices heading even higher for consumers, according 0:05:39.000 --> 0:05:42.080 to a survey from the National Federation of Independent Business 0:05:42.120 --> 0:05:45.880 For Intent, US small businesses plan to raise prices by 0:05:45.880 --> 0:05:48.760 at least ten percent. And I'm all Street today, Nathan, 0:05:48.800 --> 0:05:52.320 we get a clearer picture of how big business it's 0:05:52.360 --> 0:05:55.200 earnings are coming in. Earnings are rolling in this afternoon 0:05:55.240 --> 0:05:57.920 for Microsoft and Google. Let me get a preview from 0:05:57.920 --> 0:06:01.360 Bloomberg's John Tucker. Google parent Alphabet has been held by 0:06:01.360 --> 0:06:04.719 a rebound and digital advertising, but the shares have LaGG 0:06:04.880 --> 0:06:07.360 and the stock will also face some more difficult year 0:06:07.400 --> 0:06:10.920 over year growth Comparis and analysts estimate earnings per shure 0:06:10.960 --> 0:06:14.760 of dollars seventy three cents, down two percent from a 0:06:14.800 --> 0:06:18.560 year earlier. At Microsoft, analysts are expanding earnings per shure 0:06:18.600 --> 0:06:22.719 of two nineteen. The company may report strong cloud results 0:06:22.720 --> 0:06:25.760 that could more than offset any potential weakness in its 0:06:25.760 --> 0:06:29.840 consumer business. John Tucker, Bloomberg, Daybreak. All right, John, Thanks, 0:06:29.839 --> 0:06:31.839 it's also a big day for earnings in Europe. Let's 0:06:31.839 --> 0:06:33.839 get the latest done that live, we go to London 0:06:33.839 --> 0:06:36.440 and Bloomberg's You and Parts. Good morning You, and good 0:06:36.440 --> 0:06:39.320 morning Nathan and Karen. A trio of banking sector beats 0:06:39.360 --> 0:06:42.120 this morning. Ubs riding a trading boom with better than 0:06:42.160 --> 0:06:45.320 expected profit in the first quarter, but the Swiss banks 0:06:45.360 --> 0:06:48.720 key wealth management business hit by slowing clients activity and 0:06:48.920 --> 0:06:52.600 rising costs. Spain's at Santande also beating estimates, with the 0:06:52.640 --> 0:06:56.680 retail banking giants geographical reach providing a buffer against growing 0:06:56.760 --> 0:07:00.680 economic risks. At HSBC posting a smaller joy in adjusted 0:07:00.720 --> 0:07:04.240 pretax profit than analysts predicted, Europe's biggest bank reporting the 0:07:04.320 --> 0:07:07.599 law than expected credit lost provisions in London. Immune Pault 0:07:07.640 --> 0:07:09.680 has been big daybreak. Okay, you and thanks right now. 0:07:09.800 --> 0:07:11.920 S and P futures are down eight point, staff futures 0:07:11.920 --> 0:07:15.239 down ninety four, nanstack futures down twenty points. Straight ahead, 0:07:15.240 --> 0:07:17.920 your latest local headlines and a check of sports. This 0:07:18.240 --> 0:07:25.280 is Bloomberg and it's sound five oh seven on Wall Street. 0:07:25.280 --> 0:07:28.280 Our current temperature fifty two degrees. We have an accident 0:07:28.280 --> 0:07:30.800 in Brooklyn this morning. Ice found bt QE a headed 0:07:30.800 --> 0:07:33.720 near Atlantic Avenue. Details coming up in traffic. First Michael 0:07:33.720 --> 0:07:35.760 Barr with more on what's going on in New York 0:07:35.760 --> 0:07:38.200 and around the world. Good morning, Michael, Good morning Nathan, 0:07:38.240 --> 0:07:41.280 and New York judge has found former President Donald Trump 0:07:41.360 --> 0:07:44.920 in contempt of court for failing to adequately respond to 0:07:44.960 --> 0:07:48.160 a subpoena issued by the state's attorney general is part 0:07:48.400 --> 0:07:51.800 of a civil investigation into his business dealings. The judge 0:07:51.880 --> 0:07:55.000 ordered Trump to pay a fine of ten thousand dollars 0:07:55.040 --> 0:07:58.320 per day. New York Attorney General Letitia James and asked 0:07:58.320 --> 0:08:01.200 the court to hold Trump in contempt after he missed 0:08:01.240 --> 0:08:04.600 a March thirty first court imposed deadline to turn over documents. 0:08:05.000 --> 0:08:08.840 The federal judge in Louisiana has temporarily blocked Biden administration 0:08:09.120 --> 0:08:11.760 from lifting the border restrictions put in place during the 0:08:11.800 --> 0:08:15.680 coronavirus pandemic. Title forty two was supposed to be lifted 0:08:15.720 --> 0:08:19.960 on May three. The temporary restraining order was requested by 0:08:20.000 --> 0:08:25.000 twenty one Republican led states. Bloomberg Politics contributor Rick Davis says, 0:08:25.080 --> 0:08:29.320 it seems the Biden administration has bungled its administration policy, 0:08:29.720 --> 0:08:33.000 and it just seems like they haven't really focused on 0:08:33.080 --> 0:08:35.040 what the impact is at the state level. They didn't 0:08:35.040 --> 0:08:38.560 consult states that are impacted by the border, and and 0:08:38.600 --> 0:08:40.800 now the whole thing seems to be adding a lot 0:08:40.800 --> 0:08:44.400 of confusion. Frankly, very reminiscent of the current COVID policy. 0:08:44.440 --> 0:08:46.400 Whether it just doesn't seem to be a strategy and 0:08:46.440 --> 0:08:51.160 play here. Bloomberg Politics contributor Rick Davis spoke out with 0:08:51.320 --> 0:08:55.240 Washington correspondent Joe Matthew on Bloomberg Sound on Catch the 0:08:55.240 --> 0:08:58.920 program weekdays at five pm Eastern on Bloomberg Radio. Workers 0:08:58.960 --> 0:09:02.680 at a second Amazon dot Com warehouse in Statn Island 0:09:02.880 --> 0:09:05.280 began voting Monday on the weather to join an upstart 0:09:05.360 --> 0:09:08.880 union that already won a historic election at a nearby facility. 0:09:09.240 --> 0:09:13.120 Employees at the warehouse called l d J five will 0:09:13.160 --> 0:09:15.920 cast their ballots through Friday, with the results expected as 0:09:15.920 --> 0:09:19.360 early as May second, Two days before a mother of 0:09:19.440 --> 0:09:23.040 fourteen children was scheduled to die in the Texas death Chamber, 0:09:23.400 --> 0:09:27.680 Melissa Luccio received the last minute reprieve. Supporters of Luccio, 0:09:27.840 --> 0:09:30.840 accused of killing her two year old child, found a 0:09:30.880 --> 0:09:34.520 forensic expert who says her child's fatal injuries were consistent 0:09:34.720 --> 0:09:38.760 with an accidental fall. Luccio's son, John Luccio, We're gonna 0:09:38.800 --> 0:09:40.520 believe in God, and we're gonna continue believe in him 0:09:40.520 --> 0:09:42.280 and keeping keep our faith up with him in a 0:09:43.200 --> 0:09:45.240 keep on fighting this fight until we bring her home. 0:09:45.440 --> 0:09:48.480 She's no longer going to be executed. My mother will 0:09:48.520 --> 0:09:51.360 be free soon. Don Luccio says. The court will rule 0:09:51.440 --> 0:09:54.120 on the new evidence. Global News twenty four hours a 0:09:54.200 --> 0:09:56.880 day on air, hand on Bloomberg quick Take, powered by 0:09:56.920 --> 0:09:59.480 more than seven hundred journalist and analyists more than a 0:09:59.679 --> 0:10:03.680 d tw two countries. Michael barn this is Bloomberg, alright, Michael, 0:10:03.679 --> 0:10:10.160 thank you. Tuning up to five ten on Wall Street 0:10:10.200 --> 0:10:12.480 time for the Bloomberg Sports Update and Morning Johnston to 0:10:12.720 --> 0:10:15.319 Morning Nathan. This NBA season began with high hopes for 0:10:15.400 --> 0:10:17.320 the New York teams and Knicks were expected to at 0:10:17.400 --> 0:10:19.800 least make the playoffs. The Nets were expected to compete 0:10:19.800 --> 0:10:23.199 for the championship. Neither thing happened. The Celtics completely the 0:10:23.320 --> 0:10:25.880 first round sweet for the Nets, taking Game four in 0:10:25.960 --> 0:10:29.160 Brooklyn one sixteen to one twelve Jason Tatum twenty nine points. 0:10:29.160 --> 0:10:33.160 Boston survived Tatum fouling out in the fourth quarter. Kevin Durant, 0:10:33.160 --> 0:10:35.760 so quiet the first three games, did come alive with 0:10:35.920 --> 0:10:38.439 thirty nine points, but Durant goes out in the first 0:10:38.559 --> 0:10:40.679 round for the first time in his career. He also 0:10:41.000 --> 0:10:43.559 had never gotten swept in a series before k d 0:10:43.800 --> 0:10:46.599 is signed. He should be back. Timber Yerby may not be, 0:10:46.760 --> 0:10:49.040 and who knows about Ben Simmons, who was acquired for 0:10:49.120 --> 0:10:52.439 James Harden and never played. Toronto stayed alive with the 0:10:52.440 --> 0:10:55.280 Game five win in Philadelphia. Dallas beat Utah by twenty 0:10:55.360 --> 0:10:58.040 five to go up three too. Memphis is John Moran 0:10:58.120 --> 0:11:01.440 and him the NBA's most improved player. The Mets in St. Louis, 0:11:01.440 --> 0:11:04.319 Max Scherzer was terrific and seven unti allowed no runs, 0:11:04.600 --> 0:11:07.960 two hits, struck out ten got no run support. Cardinals 0:11:07.960 --> 0:11:10.040 broke up a scoreless game with two runs in the eighth. 0:11:10.040 --> 0:11:12.480 It ain't Mets then rallied in the ninth. He goes 0:11:12.520 --> 0:11:15.559 ready as pitch, We're gonna groundball toward first cold spit 0:11:15.640 --> 0:11:18.960 a typing stop. Nobody's clevering first. What the diego? Smith? 0:11:19.040 --> 0:11:22.600 This safe? Tick deal run third throw home d safe. 0:11:22.840 --> 0:11:26.520 The Mets have the lead. Tomin X Smith comes through 0:11:26.600 --> 0:11:29.280 off the bench with two outs in the top of 0:11:29.280 --> 0:11:31.719 the dine w C. He has. Brandon Nimo followed with 0:11:31.760 --> 0:11:34.640 a two run omber. The Mets improved a thirteen and five. 0:11:34.720 --> 0:11:37.400 They beat the Cardinals five at two. Yankees owes Baltimore tonight. 0:11:37.880 --> 0:11:40.040 If the Rangers have any hopes of winning the division, 0:11:40.080 --> 0:11:42.840 they'll need to beat Carolina tonight at the Garden. John 0:11:42.840 --> 0:11:46.600 Stay Bloomberg Sports didn't thank john SMP futures down down 0:11:46.640 --> 0:11:49.600 six point Stouff futures down seventy nan Stack futures down eight. 0:11:49.679 --> 0:11:52.760 Attain your treasury up eight thirty seconds. The yield two 0:11:52.760 --> 0:11:56.120 point seven eight percent. Twitter shares of four tenths of 0:11:56.200 --> 0:12:00.520 one percent. As Elon Musk buys it out, we get 0:12:00.520 --> 0:12:04.440 insights next from Dan Ives white Bush Securities. This is 0:12:04.480 --> 0:12:09.560 Bloomberg Bloomberg Daybreak is brought to you by the New 0:12:09.600 --> 0:12:11.480 York Community Trust. Your name will live on as a 0:12:11.559 --> 0:12:13.640 champion of the causes you care about for years to 0:12:13.679 --> 0:12:16.439 come through a charitable bequest to the New York Community Cross. 0:12:16.559 --> 0:12:23.720 Learn more at Philanthropist dot NYC. Markets headlines and breaking 0:12:23.760 --> 0:12:26.680 news twenty four hours a day at Bloomberg dot com, 0:12:26.800 --> 0:12:30.320 the Bloomberg Business Outland at Bloomberg Quick Take. This is 0:12:30.320 --> 0:12:39.880 a Bloomberg Business flash and I'm Karen Moscow. Stocks in 0:12:39.960 --> 0:12:42.880 Europe are on the rise as China's pledged to boost 0:12:42.920 --> 0:12:46.319 monetary policy support where its COVID hit economy lifts sentiment, 0:12:46.400 --> 0:12:49.120 while traders are also lying a raft of earnings reports 0:12:49.120 --> 0:12:52.040 from some of the region's biggest companies. US DOCK index 0:12:52.080 --> 0:12:54.520 futures are lower, and we checked the markets every fifteen 0:12:54.520 --> 0:12:57.280 minutes throughout the trading day on Bloomberg. Right now, U 0:12:57.320 --> 0:13:00.000 S and P futures are down seven points down few 0:13:00.400 --> 0:13:03.920 down seventy six, NASDACK futures down four team. The decks 0:13:03.920 --> 0:13:06.520 in Germany is up about one point two percent ten. 0:13:06.600 --> 0:13:09.199 Your treasury up eight thirty seconds, yield two point seven 0:13:09.200 --> 0:13:11.400 eight percent. They yield on a two year two point 0:13:11.440 --> 0:13:14.440 five nine percent, and II Max screwed oil is down 0:13:14.440 --> 0:13:16.920 one point three on a dollar thirty at ninety seven 0:13:17.559 --> 0:13:20.400 four cents in barrel. That's a Bloomberg business flash. Now 0:13:20.400 --> 0:13:22.760 here's Michael Barr with Moore on what's going on around 0:13:22.760 --> 0:13:26.160 the world. Michael, good morning, Good morning, Karen. Russian Foreign 0:13:26.200 --> 0:13:29.960 Minister Sergey Lavrov war in the Ukraine against provoking World 0:13:30.040 --> 0:13:33.840 War three. Lavrov said on Russian TV that the threat 0:13:33.880 --> 0:13:37.440 of a nuclear conflict should not be underestimated. There's mounting 0:13:37.480 --> 0:13:40.560 pressure on former Trump White House Chief of Staff Mark 0:13:40.640 --> 0:13:45.920 Meadows to turn over additional information to January sixth congressional investigators. 0:13:45.960 --> 0:13:49.240 More than two thousand of meadows texts, first reported by 0:13:49.320 --> 0:13:52.439 CNN have now been released. According to the text, some 0:13:52.520 --> 0:13:56.040 of Donald Trump staunch's allies in Congress wanted him to 0:13:56.040 --> 0:13:59.480 declare martial law to prevent Joe Biden from becoming president. 0:14:00.080 --> 0:14:03.640 In the NBA Playoffs, the Celtics eliminated the Nets. Boston 0:14:03.880 --> 0:14:07.400 beat Brooklyn won sixte t to sweep the series in 0:14:07.440 --> 0:14:10.760 four games. In MLB, the mattson Giants one the Red 0:14:10.760 --> 0:14:13.880 Sox lost. Global News twenty four hours a day on 0:14:14.000 --> 0:14:17.840 air and on Bloomberg Quicktake, powered by more than seven 0:14:17.920 --> 0:14:20.760 hundred journalists and analysts more than a hundred twenty countries. 0:14:20.920 --> 0:14:24.040 I'm Michael Barr. This is Bloomberg, Nathan, Michael. Thank you. 0:14:24.080 --> 0:14:26.720 It's five nineteen on Wall Street Live from the Bloomberg 0:14:26.760 --> 0:14:30.800 Interactive Brokers Studios. This is Bloomberg Daybreak, and it is 0:14:30.840 --> 0:14:33.640 the talk of Wall Street this morning. Not to mention 0:14:33.800 --> 0:14:38.000 social media, Elon Musk is buying Twitter in a forty 0:14:38.080 --> 0:14:42.160 four billion dollar leveraged buyout that even the testless CEO 0:14:42.360 --> 0:14:44.600 himself said he wasn't sure would be able to happen 0:14:44.760 --> 0:14:47.480 just a few days ago. Dan Ives is back with 0:14:47.560 --> 0:14:50.800 us this morning, Managing director and senior equity analyst at 0:14:50.800 --> 0:14:54.560 Wedbush Securities. Dan I think it was not even two 0:14:54.600 --> 0:14:57.640 weeks ago we were talking about the fifty best and 0:14:57.800 --> 0:15:01.720 final offer from Elon Musk. It is just incredible how 0:15:01.800 --> 0:15:07.080 quickly the Tesla CEO was able to pull this deal off. Look, ultimately, 0:15:07.200 --> 0:15:09.960 I mean this was really Board's backward against the wall. 0:15:10.120 --> 0:15:12.800 I mean they did the poison pill. They were waiting 0:15:12.920 --> 0:15:15.680 for a white night, a second bidder, but they were 0:15:15.720 --> 0:15:18.160 at the altar and no one ever came. And once 0:15:18.360 --> 0:15:23.640 Musk detailed his financing. Wait last week, the board ultimately 0:15:23.720 --> 0:15:26.520 the clock struck midnight. They had to ultimately sit down 0:15:26.520 --> 0:15:28.880 and do a deal with Musk, and that's why today 0:15:28.880 --> 0:15:31.600 was sitting with the Must Morning Twitter. Do you think 0:15:31.600 --> 0:15:35.320 the deal sticks? I mean, we've got the financing from 0:15:35.320 --> 0:15:38.080 Morgan Stanley, but Elon Musk has got to come up 0:15:38.120 --> 0:15:40.520 with twenty one billion dollars of his own money to 0:15:40.560 --> 0:15:44.040 make this happen. Right, Yeah, he's betten about percent of 0:15:44.080 --> 0:15:47.560 his network pleasure. We have tim percent of his Tesla shares. 0:15:48.000 --> 0:15:50.920 The equity financing is all there, you know, so they're 0:15:50.960 --> 0:15:55.000 from a financing perspective, it's really all set regulatory. I mean, 0:15:55.000 --> 0:15:58.440 they'll definitely be some tuition turned ahead, but I ultimately 0:15:58.520 --> 0:16:01.480 expected to get done into is of a deal. And 0:16:01.520 --> 0:16:04.480 in terms of Twitter shareholders, I mean they were drinking 0:16:04.520 --> 0:16:07.880 some champagne or some good wine last night. Because this 0:16:08.040 --> 0:16:11.120 ultimately ends up in a Goldilock scenario if it's not 0:16:11.200 --> 0:16:15.000 from Must the stockspot about thirty hours. I gotta ask, though, 0:16:15.120 --> 0:16:20.480 do you think Twitter is worth billion dollars? No way? 0:16:20.920 --> 0:16:23.240 I mean it just comes down I mean that I 0:16:23.280 --> 0:16:27.560 mean not again. It goes back to that's why they 0:16:27.600 --> 0:16:32.320 couldn't get a second bitter, because the price is so 0:16:32.440 --> 0:16:36.760 lofty relative to the core fundamental social media headwinds that 0:16:36.840 --> 0:16:39.480 they're seeing. Me look at Facebook just is another example. 0:16:40.560 --> 0:16:42.960 That's ultimately why I must pay the price, and no 0:16:43.000 --> 0:16:47.040 one else was gonna match, so so it continues to 0:16:47.040 --> 0:16:49.040 be a head scratch. And that's why, you know, when 0:16:49.040 --> 0:16:52.560 you look at he's essentially trading Tesla shares for Twitter shares, 0:16:52.560 --> 0:16:55.200 and I would compare it. I mean he's basically trading 0:16:56.000 --> 0:16:59.000 No Boo Sush shoot, you know Sush sheets for you 0:16:59.040 --> 0:17:01.360 know New York City hot dog. Yeah, I've heard that 0:17:01.440 --> 0:17:04.880 to quote before. Yes, it gets to the motivations right 0:17:04.960 --> 0:17:09.200 about what Elon Musk is thinking about buying out Twitter. 0:17:10.200 --> 0:17:12.560 Does he want it to make money? Is it all 0:17:12.600 --> 0:17:16.560 about what he said making it the free speech platform? 0:17:16.600 --> 0:17:19.560 And does that raise the question of whether he even 0:17:19.680 --> 0:17:23.520 needs it to make money in that scenario? Well, that's 0:17:23.560 --> 0:17:26.919 the unusual thing here. It's a guilded age type situation 0:17:26.960 --> 0:17:30.480 where he's not really doing it from a monization respect. 0:17:30.600 --> 0:17:33.840 Music goes back to to be able to monetize forty 0:17:33.920 --> 0:17:36.359 four billions for Twitter, I mean that's going to take 0:17:36.880 --> 0:17:39.760 that's an average I got pill battle. So the freme 0:17:39.840 --> 0:17:42.399 of speech thing, obviously it's front and center. But again 0:17:42.480 --> 0:17:45.720 that's that's the divisive piece, which is a taiwire act 0:17:45.840 --> 0:17:48.720 with Twitter, you know, needs to make sure moves to 0:17:48.800 --> 0:17:51.879 a subscription model and then we give out freeing the speech, 0:17:51.960 --> 0:17:54.520 Like does it start to go down a bad path 0:17:54.560 --> 0:17:57.400 because then others will leave the platform. So that's why 0:17:57.520 --> 0:18:00.320 right now, I mean, this is a platform has been 0:18:00.320 --> 0:18:02.760 on the reform for the last decade, Doors and others 0:18:02.800 --> 0:18:06.320 couldn't turn around. Musk has obviously had massive success with 0:18:06.440 --> 0:18:10.679 other platforms Twitter, that's a whole another animal on versus 0:18:10.720 --> 0:18:17.119 technology platforms like Kpal, Pesla, SpaceX. Now, obviously Elon Musk 0:18:17.200 --> 0:18:19.840 has thrown out a lot of potential changes he would 0:18:19.880 --> 0:18:22.200 make now that he is taking a private What's the 0:18:22.280 --> 0:18:26.680 one serious change that you think Elon Musk could make 0:18:26.760 --> 0:18:29.800 that he is seriously thinking of making as he takes 0:18:29.800 --> 0:18:33.720 Tessil private. The biggest one, I mean, similar almost to LinkedIn. 0:18:33.800 --> 0:18:36.760 I mean, they're going to have a legit premium, fere 0:18:36.840 --> 0:18:41.120 paid per month subscription platform, and I think that's that's 0:18:41.160 --> 0:18:44.359 the biggest thing that investors have always talked about that's 0:18:44.400 --> 0:18:47.600 what I believe they'll implement, really focus more on subscription 0:18:47.680 --> 0:18:51.320 revenue versus advertising. It goes back to like that's a 0:18:51.640 --> 0:18:54.600 business model change. They'll lose a lot of subs, but 0:18:54.720 --> 0:18:57.200 that's really what they need to do here to transform 0:18:57.280 --> 0:19:02.320 the platform. You know, especially if you look relative to Facebook, Instagram, 0:19:02.359 --> 0:19:05.639 TikTok and others each on the outside looking into social media. 0:19:06.119 --> 0:19:08.480 In thirty seconds left here, Dan, do you think CEO 0:19:08.640 --> 0:19:12.840 paragog raal Wall stays Ceo. I think he's going to 0:19:13.000 --> 0:19:16.400 focus on his golf game, getting it down to the scratch. 0:19:16.560 --> 0:19:20.400 I do not seem at Twitter, all right, Dan, Always 0:19:20.400 --> 0:19:25.240 great getting your thoughts, always blunt spoken. Really appreciate having 0:19:25.240 --> 0:19:28.520 God with us this morning, Dan Ives, Managing Director, senior 0:19:28.520 --> 0:19:32.000 equity analyst at Wedbush Securities. Again it is the story 0:19:32.000 --> 0:19:35.080 of the morning, Elon Musk buying out Twitter and a 0:19:35.200 --> 0:19:38.840 deal value forty four billion dollars, biggest leverage buyout ever. 0:19:38.920 --> 0:19:42.560 Our team coverage continues as we check top stories in 0:19:42.600 --> 0:19:45.480 the morning here on Bloomberg Daybreak, as we await big 0:19:45.520 --> 0:19:48.240 tech earning. So can stick around as we check those 0:19:48.280 --> 0:19:52.080 top stories uh this morning. Right now, Twitter shares are 0:19:52.240 --> 0:19:55.719 up six tenths of one percent in the pre market. 0:19:55.960 --> 0:19:59.480 SMP futures down ten points, STAY futures down a hundred five, 0:20:00.000 --> 0:20:08.439 AZDAC futures down thirty. This is Bloomberg, Bloomberg eleven three 0:20:08.480 --> 0:20:10.680 oh weather, mostly cloud. He'd say chance for showers of 0:20:10.720 --> 0:20:14.359 the high near sixty five degrees, upper fifties Tomorrow, mostly sunny. 0:20:14.600 --> 0:20:17.119 It will be mostly sunny, breezy Thursday, with a higher 0:20:17.160 --> 0:20:23.680 fifty five right now fifty two degrees Croadcasting live from 0:20:23.680 --> 0:20:27.800 the Bloomberg Interactive Brokery studio in New York. Bloomberg Eleving 0:20:27.880 --> 0:20:32.399 Freo to Washington, d C, Bloomberg to Boston, Bloomberg one 0:20:32.480 --> 0:20:36.200 O six one to San Francisco, Bloomberg sixty to the country, 0:20:36.280 --> 0:20:39.320 Sirius XM chto one nine team and around the globe 0:20:39.400 --> 0:20:43.399 the Bloomberg Business and Bloomberg Radio dot Com. This is 0:20:43.400 --> 0:20:51.960 Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. 0:20:51.960 --> 0:20:55.000 I'm Nathan Hager and I'm Karen Moscow. We're just about 0:20:55.000 --> 0:20:57.480 four hours away from the open of US trading. Let's 0:20:57.520 --> 0:20:58.879 get you have to date on the news you need 0:20:58.960 --> 0:21:01.359 to know at this hour. We begin with Twitter Elon 0:21:01.440 --> 0:21:04.159 Musk has clenched a forty four billion dollar deal to 0:21:04.200 --> 0:21:08.119 take the social media giant private, and San Francisco Bloomberg's 0:21:08.119 --> 0:21:11.359 ad Ludlow has more on what's next for shareholders. Each 0:21:11.359 --> 0:21:14.600 investor will receive fifty four dollars and twenty cents for 0:21:14.680 --> 0:21:17.600 each share that they hold. The deal has the unanimous 0:21:17.600 --> 0:21:20.800 backing of Twitter's board, and the transaction is expected to 0:21:20.880 --> 0:21:23.399 close by the end of this year. The deal also 0:21:23.440 --> 0:21:26.720 includes a provision where Elon Musque, according to sources, would 0:21:26.720 --> 0:21:28.840 have to pay Twitter a fee if he was to 0:21:28.880 --> 0:21:32.040 walk away from the deal, and Bloomberg's had Ludlow says 0:21:32.040 --> 0:21:35.880 Twitter cannot solicit other offers while the transaction is pending. 0:21:36.119 --> 0:21:39.280 So where will Elon Musk get the cash to buy Twitter? 0:21:39.359 --> 0:21:41.720 Bloomberg's Rnita Young joins us Live in New York with 0:21:41.760 --> 0:21:43.960 the latest. Don that Good morning, Rnita, Good morning Nathan. 0:21:44.119 --> 0:21:47.800 It's the twenty one billion dollar mystery. There's little doubt 0:21:47.800 --> 0:21:50.280 Elon Musk can come up with the money. After all, 0:21:50.320 --> 0:21:53.679 the Bloomberg Billionaires Index shows he's the world's richest person 0:21:53.920 --> 0:21:56.840 with a fortune of two hundred fifty seven billion dollars, 0:21:57.080 --> 0:22:00.399 But Bloomberg estimates show Musk has just about three billion 0:22:00.440 --> 0:22:03.400 in cash and somewhat liquid assets, so that leaves him 0:22:03.440 --> 0:22:07.400 with about three options for financing. One way, Musk could 0:22:07.440 --> 0:22:10.240 find other investors who buy into his vision, and he's 0:22:10.280 --> 0:22:13.320 already hinted at this possibility. Another way, he could sell 0:22:13.359 --> 0:22:15.640 some of his stakes in Tesla, but that will likely 0:22:15.680 --> 0:22:18.359 put the stock price at risk, and since Musk is 0:22:18.400 --> 0:22:21.880 likely even richer than calculated by the Bloomberg Billionaires Index, 0:22:22.119 --> 0:22:24.480 he might not even need new sources of funding to 0:22:24.560 --> 0:22:27.720 cover the twenty one billion dollars. Live in New York. 0:22:27.760 --> 0:22:30.879