Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Amy Morris. Here are the
Speaker 2: stories we're following today.
Speaker 3: Shares of Tesla are going in reverse this morning. They're
Speaker 3: down more than seven percent in the pre market. The
Speaker 3: electric vehicle maker says it expects sales growth this year
Speaker 3: to be quote notably lower. We get more from Bloomberg's
Speaker 3: Oliver Kruk.
Speaker 4: They gave no guidance in terms of deliveries for this year.
Speaker 4: They delivered one point eight last year million. That is
Speaker 4: they're expecting two point two. That's what the analysts are expecting.
Speaker 4: That's still twenty percent growth against a backdrop that is
Speaker 4: challenging for a lot of the auto sector and a
Speaker 4: lot of the EV market. There's going to be a
Speaker 4: slow down in EV's that seems more or less certain
Speaker 4: this year. Interest rates, basically, Elon Musk said that our
Speaker 4: margin is directly pegged to interest rates in the United States,
Speaker 4: So if they come down, our margins will be good.
Speaker 4: If they don't, they'll be worse. And there's a competition
Speaker 4: from China. There's all these other competitors with cheaper models
Speaker 4: that are coming into the market.
Speaker 3: Bloomberg Zolli Krouk says On the conference call, Elon Musk
Speaker 3: said he needs a bigger steak in Tesla to prevent
Speaker 3: being ouse to a CEO. Right now, he owns about
Speaker 3: thirteen percent of the company.
Speaker 2: While Taesla's shares are sliding. It's a different picture at
Speaker 2: IBM this morning, shares up more than seven and a
Speaker 2: half percent. The company delivered a positive outlook for revenue
Speaker 2: and cash flow in twenty twenty four. Those details now
Speaker 2: from Bloomberg's Charlie Pellett.
Speaker 5: It is an optimistic signal for the pace of corporate
Speaker 5: technology spending. IBM also announced it does expect to reduce
Speaker 5: jobs by a percentage in the low single digits. The ARMANC,
Speaker 5: New York based company has focused on streamlining its operations
Speaker 5: around software and services in recent years by divesting managed infrastructure, weather,
Speaker 5: and health businesses. IBM has also introduced new products to
Speaker 5: capitalize on growing interest in artificial intelligence in New York.
Speaker 5: Charlie Pellett Bloomberg.
Speaker 3: Radio, All right, Charlie, thank you. We're also following Boeing
Speaker 3: this morning. That stock is down another two percent. The
Speaker 3: Federal Aviation Administration is freezing planned production increases for Boeing
Speaker 3: seven thirty seven Max. At the same time, the FAA
Speaker 3: approved inspection procedures that airlines need to carry out in
Speaker 3: order for the Max to resume flights. Boeing CEO Dave
Speaker 3: Calhoun met with senators yesterday. Before that meeting, he was
Speaker 3: asked what message he has for concerned passengers.
Speaker 6: We fly safe planes. We don't put airplanes in the
Speaker 6: air that we don't have one hundred percent confidence in.
Speaker 6: I'm here today in the spirit of transparency to number one,
Speaker 6: recognize the seriousness of what you just asked. Number two,
Speaker 6: to share everything I can with our Capitol Hill interests
Speaker 6: and answer all their questions because they have a lot
Speaker 6: of them.
Speaker 3: I'm Boeing CEO Dave Calhoun told senators the planemaker's current
Speaker 3: safety issue can be resolved in days and weeks, not months.
Speaker 2: Turning to politics now, Earlier this week, Donald Trump was
Speaker 2: in New Hampshire for the primary. Now he is set
Speaker 2: to take the witness stand today in the defamation suit
Speaker 2: brought by Ejing Carrol Bloomberg's Ed Baxter has that story.
Speaker 7: This comes two days after his New Hampshire victory, and
Speaker 7: he'll be in front of a jury. Carol contends his
Speaker 7: denials of her rape clam have hurt her reputation. It
Speaker 7: gives Trump a chance in the witness box to repeat
Speaker 7: the denials. This could be very contentious. Judge Lewis Kaplan
Speaker 7: has already held Trump liable for defamation, and if Trump
Speaker 7: ignores the judicial restraints on what he can say, as
Speaker 7: he has in the past, it could lead to fireworks.
Speaker 7: Last week, remember Kaplan threatened to bar him from the courtroom,
Speaker 7: saying he couldn't control himself. Ed Baxter Bloomberg Radio, all.
Speaker 8: Right, and thank you.
Speaker 3: As for President Biden, he's picked up a key endorsement
Speaker 3: as he ramps up his reelection campaign, winning the banking
Speaker 3: of the United Autoworkers' Union UAW. President Sean Fain says
Speaker 3: the president has earned it.
Speaker 9: He joined us in solidarity on the picket line for
Speaker 9: the first time in our nation's history a sitting president
Speaker 9: has ever done that.
Speaker 3: And the UAW Shan Fain laid into former President Trump,
Speaker 3: calling him a scab who represents billionaires. President Biden says
Speaker 3: he's kept his word to be the most pro union
Speaker 3: president ever.
Speaker 5: I'm proud you have my back.
Speaker 4: Let me just say, I'm honored to have your back
Speaker 4: and you have mine.
Speaker 5: That's the deal.
Speaker 3: How President Biden will still need to win the back
Speaker 3: of rank and file union members. The UAW says it'll
Speaker 3: ramp up get out the vote efforts for the president
Speaker 3: in Michigan and other battleground states.
Speaker 2: The Federal Reserve has raised the rate on loans to
Speaker 2: banks issued under an emergency lending program launched last year.
Speaker 2: The move comes after borrowing surged in recent weeks as
Speaker 2: institutions took advantage of the attractive financing terms overseas.
Speaker 3: Amy we're expecting a policy decision from the European Central Bank.
Speaker 3: Economists to expect the ECB to leave rates unchanged in
Speaker 3: its first monetary policy decision of the year. Instead, the
Speaker 3: focus is on President Christine Legard's news conference and any
Speaker 3: fresh signals on the outlook for borrowing costs and.
Speaker 2: A warning from former Treasury Secretary Robert Rubin. He says
Speaker 2: risks are even greater today than in the early nineteen nineties,
Speaker 2: when incoming President Bill Clinton crafted a budget tightening package
Speaker 2: to shrink the deficit. Reuben spoke with David Weston on
Speaker 2: Bloomberg's Wall Street Week.
Speaker 10: I think we're in a terrible place because, unfortunately, once
Speaker 10: you get to legislating.
Speaker 5: There isn't the will.
Speaker 10: There's a lot of talk, but the talk is always
Speaker 10: divided politically between the Republicans who refused to raise taxes
Speaker 10: and the Democrats who won't deal in titlements.
Speaker 2: You can catch the entire interview with former Treasury Secretary
Speaker 2: Robert Rubin on Bloomberg Wall Street Week with David Weston
Speaker 2: on both Bloomberg Radio and television.
Speaker 3: And this note from overseas Amy. Pay for most senior
Speaker 3: investment bankers at Wall Street firms in Asia fell to
Speaker 3: its lowest level in almost two decades. Sources say total
Speaker 3: compensation in Asia, leaving out Japan fell to between seven
Speaker 3: hundred thousand to eight hundred thousand dollars. That is well
Speaker 3: below the million or more that senior investment bankers have
Speaker 3: typically earned. At least twenty percent at Managing directors at
Speaker 3: lenders including Morgan, Stanley and Ubs received no bonuses last
Speaker 3: year in Asia.
Speaker 2: Time now for a look at some of the other
Speaker 2: stories making news around the world, and for that we're
Speaker 2: joined by Bloomberg's John Tucker.
Speaker 5: Good morning John, and Good morning Amy.
Speaker 11: There is hope of a bipartisan border deal, but some
Speaker 11: lawmakers say if they're no big policy changes, then immigration
Speaker 11: reform is dead on a rival. More from Bloomberg's Nancy Lyons.
Speaker 12: The details of the agreement have not yet been released,
Speaker 12: but some Republican senators are already criticizing the bones of
Speaker 12: the deal, like you TOAs Mike Lee.
Speaker 13: I have great respect for colleagues who are working hard
Speaker 13: trying to fix the problem, and I'm sure they are
Speaker 13: coming up with some provisions that might help certain things.
Speaker 13: But from what I'm hearing, this could cause as many
Speaker 13: problems as it's sold.
Speaker 12: The bill being drafted would reportedly grant humanitarian parole to
Speaker 12: five thousand undocumented immigrants a day. These GOP lawmakers say
Speaker 12: that's a magnet that will draw more people to our
Speaker 12: border in Washington, Nancy lyons Bloomberg Radio.
Speaker 11: Nicky Haley campaigns in our home state of South Carolina.
Speaker 11: Last night, she talked in part about Donald Trump's reaction
Speaker 11: to her not dropping out of the race after New Hampshire.
Speaker 8: He pitched a fit, he was insulting.
Speaker 12: He was doing what he does, But I know that's
Speaker 12: what he does when he's insecure.
Speaker 5: I know that's what he does when he.
Speaker 4: Is threatened, and he should feel threatened without a.
Speaker 11: Doubt, Haley is vowing to press on. Thanks to the
Speaker 11: backing of Wall Street Titans, wealthy donors, and a group
Speaker 11: funded by industrialist Charles Koch means she has enough funding
Speaker 11: to keep running. Another attempted attack on merchant shipping by
Speaker 11: iranbak Houthi militants. US Central Command says US Guided missile
Speaker 11: destroyer shot down two anti ship ballistic missiles aimed at
Speaker 11: two American flag vessels in the Gulf of Aden. A
Speaker 11: third missile fell into the sea. The attack is the
Speaker 11: first in five days, comes despite multiple rounds of retaliatory
Speaker 11: strikes by the US and the UK. Fox has been
Speaker 11: ordered to face a two point seven billion dollar defamation
Speaker 11: lawsuit by Smartmatic Corporation, one of two voting technologies companies
Speaker 11: falsely accused on Fox News of rigging the twenty twenty
Speaker 11: presidential election against Donald Trump. The decision Wednesday by New
Speaker 11: York Jidts Who's the latest sent back for Fox after
Speaker 11: the media giant agreed in April to pay seven hundred
Speaker 11: and eighty eight million dollars to settle a similar suit
Speaker 11: by Dominion Voting Systems. Global News twenty four hours a
Speaker 11: day and whatever you want it with Bloomberg News Now.
Speaker 11: I'm John Tucker Han. This is Bloomberg Amy.
Speaker 2: All right, thank you John. We bring you the news
Speaker 2: throughout the day here on Bloomberg Radio. But now you
Speaker 2: can get the latest news on demand whenever you want it.
Speaker 2: Subscribe to Bloomberg News Now to get the latest headlines
Speaker 2: at the click of a button. Get informed on your schedule.
Speaker 2: You can listen and subscribe to Bloomberg News Now on
Speaker 2: the Bloomberg Business app, Bloomberg dot com plus Apple, Spotify,
Speaker 2: and anywhere else you get your podcasts. Time now for
Speaker 2: our Bloomberg Sports Updated. For that, we bring in John
Speaker 2: stash Hour.
Speaker 14: Amy Jin. Harbaugh was going to be a hot NFL
Speaker 14: coaching commodity considering the success he had had with the
Speaker 14: forty nine Ers getting them to the Super Bowl, and
Speaker 14: then when he coached Michigan too the undefeated season of
Speaker 14: the National Championship, he became even hotter. Spoke with many
Speaker 14: NFL teams, but the LA Chargers were always seen as
Speaker 14: the favorites. He wants quarterback the Chargers back in nineteen
Speaker 14: ninety nine. In two thousand, hits official a five year deal,
Speaker 14: Harbaugh taking over an underachieving Chargers team that has a
Speaker 14: good quarterback in Justin Herbert Nick. Sirianni staying in Philadelphia,
Speaker 14: but the Eagles changing both coordinators and they say that
Speaker 14: Sirianni will no longer be as involved in the offense.
Speaker 14: The Eagles had that horrendous slump at the end of
Speaker 14: this past season. Joe Tony, pro Bowl guard doubtful for
Speaker 14: the Kansas City Chiefs in their AFC Championship game Sunday
Speaker 14: in Baltimore, NBA Milwaukee Cleveland won twenty six to one sixteen.
Speaker 14: It was the first game for the Bucks since the
Speaker 14: coaching change the firing of Adrian Griffin. Joe Prunty coached
Speaker 14: them last night, but Doc Rivers is taking over the Bucks.
Speaker 14: He went to college in Milwaukee at Marquette. He's had
Speaker 14: sixteen straight coaching seasons with an over five hundred record.
Speaker 14: Minnesota got thirty eight points from Anthony Edwards in a
Speaker 14: one eighteen one oh seven win at Washington. The Warriors
Speaker 14: played for the first time since the death of their
Speaker 14: assistant coach Dejon Milojovich. They beat Atlanta one thirty four
Speaker 14: to one twelve. Joseph Kamega scored twenty five points. He
Speaker 14: shot eleven for eleven John Stashanward Bloomberg Sports.
Speaker 8: From coast to coast, from New York to San Francisco,
Speaker 8: Boston to Washington, DC, nationwide on SYRIASXAM, the Bloomberg Business
Speaker 8: appened Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 5: Good morning.
Speaker 3: I'm Nathan Hager. The latest earnings report from Tesla isn't
Speaker 3: exactly giving investors a charge this morning. The electric vehicle
Speaker 3: Giant came in with earnings and revenue just shy of
Speaker 3: Wall Street estimates, but CEO Elon Musk's warning that growth
Speaker 3: will be notably lower this year is certainly putting a
Speaker 3: weight on the share price this morning. So let's get
Speaker 3: more on the outlook for Tesla and EV's. We're joined
Speaker 3: now by Bloomberg News transportation reporter Danny Lee. Danny, thanks
Speaker 3: for being with us. Notably lower is that the phrase
Speaker 3: that's gott investors spoke this morning.
Speaker 15: I think it's a combination of being notably lower or
Speaker 15: nottally slower in fact on growth, and the EV Giant
Speaker 15: didn't even offer four year guidance for twenty twenty four,
Speaker 15: and that is what is spooking investors. And fans alike,
Speaker 15: and what you could characterize this year twenty twenty four
Speaker 15: as a transition year for Tesla, you know, all that
Speaker 15: growth of the past couple of years and nothing in
Speaker 15: between until next year when it releases new models.
Speaker 3: Those new models include, at least according to Elon Musk
Speaker 3: on the call, a new lower priced car. We've kind
Speaker 3: of heard that before, haven't we.
Speaker 15: The el Mousk has a who aspired to have a
Speaker 15: low cost car but has never delivered. And this is
Speaker 15: now Elon Musk for the first time with Tesla executing
Speaker 15: on that promise. But this is still going to come
Speaker 15: in the back end of twenty twenty five. So even
Speaker 15: though this does come in twenty twenty five, it's still
Speaker 15: almost like two years away from where we are now,
Speaker 15: and it's a considerable weight for then investors having to
Speaker 15: wait for this ramp up all the costs that go
Speaker 15: into building up new models. As we've seen with the
Speaker 15: struggle Tesla has with the cyber truck, it's going to
Speaker 15: be a potential dragon earnings.
Speaker 5: And in the meantime, the.
Speaker 3: Ev giant has been cutting costs pretty aggressively and trying
Speaker 3: to get past the headwind of higher interest rates. Is
Speaker 3: there a trajectory for Tesla to continue with that strategy.
Speaker 15: Well, Tesla has been looking to cut its costs. He's
Speaker 15: also been cutting prices, you know, trying to lure consumers
Speaker 15: with these obviously battling higher interest rates, So there is
Speaker 15: always that person pull factor, and Elon's trying to find
Speaker 15: any way which possible to make sure he's getting the
Speaker 15: best possible costs for his product in order to be
Speaker 15: so much more competitive when it comes to a price.
Speaker 15: And obviously what we see right now the backdrop for
Speaker 15: the US consumer in particular is they're not necessarily as
Speaker 15: willing to buy new electric vehicles.
Speaker 3: Another interesting note for Musk on the call, saying that
Speaker 3: he might need a bigger stake in the company to
Speaker 3: avoid being ousted as CEO. Is governance becoming more of
Speaker 3: an issue for Tesla on the board, particularly with all
Speaker 3: the distractions around X and whatnot.
Speaker 15: Well, Elon Musk, you know, after buying Twitter and selling
Speaker 15: down his shares in Tesla to fund this purchase, he
Speaker 15: will saber rattle as much as he wants to ensure
Speaker 15: that he potentially will get what he ultimately wants is
Speaker 15: some form of better control, bigger controlled again of Tesla.
Speaker 15: So I think this is a wait and see moment
Speaker 15: whether the border seeds to his demands. But ultimately Tesla,
Speaker 15: Elon Musk Rather is really the lynchpin in driving Tesla forward.
Speaker 3: Of course, it's not just Tesla facing headwinds. Boeing has
Speaker 3: the grounded seven thirty seven Max nine and now this
Speaker 3: production freeze ordered from the FAA. It seems like the
Speaker 3: hits just keep on coming for Boeing.
Speaker 15: Danny, Yeah, I mean the US Federal Aviation Administration escalating
Speaker 15: its response in the wake of the Alaska Airlines accident,
Speaker 15: and in two parts it's partly good news for Boeing
Speaker 15: and obviously partly very bad news. On the good side,
Speaker 15: there is the restart of the inspections that airlines can
Speaker 15: now look to get the grounded Max nines back into
Speaker 15: the how the restriction on expanding production. This is all
Speaker 15: key and very directly important to Boeing's ability to grow.
Speaker 15: It's cash cow seventy seven Max. You all the money
Speaker 15: that goes into delivering the revenue. It's so important. It
Speaker 15: delivers thirty eight planes a month and it's trying to
Speaker 15: grow that to fifty. So there's a big gap right
Speaker 15: now into what it potentially could do in future. And
Speaker 15: on January thirty first, Boeing is meant to be delivering
Speaker 15: its guidance for twenty twenty four, so what effect this
Speaker 15: has on its future outlook into twenty twenty four will
Speaker 15: be very, very key.
Speaker 1: This is Bloomberg day Break Today, your morning brief on
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