1 00:00:03,960 --> 00:00:06,960 Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg 2 00:00:07,040 --> 00:00:10,680 Speaker 1: day Break for Thursday, April fourteen. Coming up this hour, 3 00:00:10,800 --> 00:00:14,560 Speaker 1: he accused Brooklyn subway shooter faces terrorism charges in federal 4 00:00:14,600 --> 00:00:17,759 Speaker 1: court today. President Biden authorizes eight hundred million dollars in 5 00:00:17,800 --> 00:00:21,160 Speaker 1: new military aid for Ukraine and bank earnings roll in Goldman, 6 00:00:21,200 --> 00:00:24,040 Speaker 1: Sachs City Group and Morgan Stanley all report this morning. 7 00:00:24,079 --> 00:00:27,320 Speaker 1: New York surgeon COVID cases are driven by a new subvariant. 8 00:00:27,320 --> 00:00:30,160 Speaker 1: Plus Texas Governor Greg Abbott the highest pressure from those 9 00:00:30,160 --> 00:00:33,400 Speaker 1: opposed to his new border policy. By Michael Blarm More Ahead, 10 00:00:33,600 --> 00:00:36,800 Speaker 1: I'm time Stashoward Sports Ladimer Guerrero's three home runs lift 11 00:00:36,800 --> 00:00:39,680 Speaker 1: in Toronto over the Yankees the medicine Rangers both one 12 00:00:39,840 --> 00:00:47,840 Speaker 1: in Philadelphia. That's all straight ahead on Bloomberg day Break 13 00:00:48,040 --> 00:00:52,560 Speaker 1: on Bloomberg eleven, Free on New York, Bloomberg one, Washington, 14 00:00:52,640 --> 00:00:57,640 Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, Francisco, 15 00:00:58,000 --> 00:01:01,280 Speaker 1: Sirius x M one nineteen and around the world on 16 00:01:01,440 --> 00:01:04,840 Speaker 1: Bloomberg Radio dot Com and via The Bloomberg Business At 17 00:01:07,280 --> 00:01:10,080 Speaker 1: Good Morning. I'm Nathan Hagar, and I'm Karen, Moscow and 18 00:01:10,200 --> 00:01:13,279 Speaker 1: US DOT Index futures are a little change this morning 19 00:01:13,319 --> 00:01:15,360 Speaker 1: heading into the holiday weekend. We're coming up to six 20 00:01:15,360 --> 00:01:17,160 Speaker 1: o one on Wall Street. We check the markets every 21 00:01:17,160 --> 00:01:19,760 Speaker 1: fifteen minutes throughout the trading day. On Bloomberg. Right now, 22 00:01:19,880 --> 00:01:23,280 Speaker 1: SNP futures are again little change. Down futures are up 23 00:01:23,319 --> 00:01:25,759 Speaker 1: thirty one now and as Day future is up twenty one. 24 00:01:25,959 --> 00:01:28,520 Speaker 1: The decks in Germany is little changed, and your treasury 25 00:01:28,600 --> 00:01:31,080 Speaker 1: little changed as well. Yea two point six nine percent 26 00:01:31,480 --> 00:01:33,360 Speaker 1: and they yield on the two year is at two 27 00:01:33,400 --> 00:01:36,280 Speaker 1: point three four percent. Nathan, Karen, We'll have one markets 28 00:01:36,319 --> 00:01:38,800 Speaker 1: in just a minute, but first, the suspected shooter in 29 00:01:38,840 --> 00:01:41,840 Speaker 1: the Brooklyn subway is set to appear in court today. 30 00:01:42,160 --> 00:01:44,920 Speaker 1: Bloomberg's Michael Barr joins US Live with the very latest. 31 00:01:44,959 --> 00:01:47,240 Speaker 1: Good morning, Michael, Good morning, Nathan. The man accused of 32 00:01:47,319 --> 00:01:50,120 Speaker 1: being the gunman who shot ten people and wounded others 33 00:01:50,320 --> 00:01:53,800 Speaker 1: in a Brooklyn subway station was arrested in Manhattan yesterday. 34 00:01:54,160 --> 00:02:02,000 Speaker 1: Mayor Eric Adams, we got police responded to except that 35 00:02:02,040 --> 00:02:04,760 Speaker 1: the sixty two year old was ad a McDonald's in 36 00:02:04,840 --> 00:02:09,320 Speaker 1: Manhattan's East Village. James allegedly fired a nine millimeter glock 37 00:02:09,400 --> 00:02:13,680 Speaker 1: handgun at least thirty three times in the Manhattan bound 38 00:02:13,800 --> 00:02:18,360 Speaker 1: in train. James, with addresses in Philadelphia and the Milwaukee area, 39 00:02:18,400 --> 00:02:21,440 Speaker 1: will make an initial court appearance on terrorism charges in 40 00:02:21,600 --> 00:02:25,200 Speaker 1: federal court in Brooklyn. U S Attorney Brian Peace, and 41 00:02:25,200 --> 00:02:28,160 Speaker 1: if convicted, he will face a sentence of up to 42 00:02:28,280 --> 00:02:32,200 Speaker 1: life imprisonment. U S Attorney Peace says the government will 43 00:02:32,320 --> 00:02:35,800 Speaker 1: prove that James traveled across state lines in order to 44 00:02:35,840 --> 00:02:39,080 Speaker 1: commit the offense in New York. Michael Barb Bloomberg Daybreak, 45 00:02:39,160 --> 00:02:42,120 Speaker 1: Karen all Right, Michael Barr, thank you while the subway shooting. 46 00:02:42,160 --> 00:02:45,279 Speaker 1: His prompt questions and how Frank James might be prosecuted 47 00:02:45,280 --> 00:02:48,440 Speaker 1: in this case. David Schwartz is a former Brooklyn prosecutor 48 00:02:48,480 --> 00:02:52,359 Speaker 1: and partner at Gertzman Schwartz. Bottom charges will be the 49 00:02:52,720 --> 00:02:56,200 Speaker 1: federal terrorism charge, will be attempted murder charges. On the 50 00:02:56,240 --> 00:02:59,680 Speaker 1: state level. There will be state charges. I believe federal 51 00:02:59,800 --> 00:03:03,360 Speaker 1: arges the federal case will come first. And former Brooklyn 52 00:03:03,400 --> 00:03:06,560 Speaker 1: prosecutor David Schwartz spoke with our Washington corresponded Joe Matthew 53 00:03:06,600 --> 00:03:09,200 Speaker 1: on Bloomberg Sound on Catch the Program weekdays at five 54 00:03:09,200 --> 00:03:11,600 Speaker 1: pm Eastern on Bloomberg Radio. Right, let's get to the 55 00:03:11,720 --> 00:03:14,760 Speaker 1: latest on the war in Ukraine. Karen Russia continues to 56 00:03:14,800 --> 00:03:17,560 Speaker 1: reposition for new attacks in the east and south. The 57 00:03:17,600 --> 00:03:20,400 Speaker 1: mayor of Maripol says more than twenty thousand people have 58 00:03:20,480 --> 00:03:22,840 Speaker 1: been killed in the weeks long siege of his city, 59 00:03:23,120 --> 00:03:26,160 Speaker 1: and now President Biden has announced eight hundred million dollars 60 00:03:26,320 --> 00:03:29,320 Speaker 1: in new military aid for Ukraine. Bloomberg's Sad Baxter has 61 00:03:29,360 --> 00:03:32,239 Speaker 1: the story. The package includes artillery, ammunition, and White House 62 00:03:32,240 --> 00:03:36,080 Speaker 1: spokeswoman Jensaki says helicopters. It was unclear for a while 63 00:03:36,360 --> 00:03:39,320 Speaker 1: um from their side whether they wanted additional helicopters. We 64 00:03:39,360 --> 00:03:42,120 Speaker 1: have provided them helicopters in the past, uh, And today 65 00:03:42,160 --> 00:03:44,640 Speaker 1: they make clear they wanted them in so we said, great, 66 00:03:45,080 --> 00:03:47,600 Speaker 1: They're helicopters in the package. So the new shipment marks 67 00:03:47,600 --> 00:03:51,600 Speaker 1: a shift toward more offensive weapons. Prior shipments had been 68 00:03:52,080 --> 00:03:56,520 Speaker 1: defensive systems. In San Francisco, I'm at Baxter Bloomberg Day Break, 69 00:03:56,640 --> 00:03:58,600 Speaker 1: All right, and thank you all. Turning to the markets now, 70 00:03:58,640 --> 00:04:01,960 Speaker 1: bank earnings continue with Oleman Snacks, Morgan, Stanley, City Group, 71 00:04:01,960 --> 00:04:04,280 Speaker 1: and Wells Fargo all reporting this morning. We get a 72 00:04:04,320 --> 00:04:08,360 Speaker 1: preview from Bloomberg Shinali Balsac. After JP Morgan reported earnings, 73 00:04:08,360 --> 00:04:10,440 Speaker 1: it turns out that trading did not fall as much 74 00:04:10,440 --> 00:04:13,000 Speaker 1: as expected. That should bode well for Goldman Sachs and 75 00:04:13,040 --> 00:04:15,960 Speaker 1: Morgan Stanley, which have a greater percentage of their earnings 76 00:04:16,000 --> 00:04:20,000 Speaker 1: tied to trading businesses. The consumer is also in pretty 77 00:04:20,000 --> 00:04:22,280 Speaker 1: strong shape, but there are some businesses that are not 78 00:04:22,400 --> 00:04:25,360 Speaker 1: growing very quickly as rates start to rise. That will 79 00:04:25,400 --> 00:04:28,640 Speaker 1: be of importance for Wells Fargo as it reports earnings today, 80 00:04:29,000 --> 00:04:31,080 Speaker 1: and for City Group there will be questions around the 81 00:04:31,120 --> 00:04:33,719 Speaker 1: Russia exposure and whether the bank has to take losses 82 00:04:33,800 --> 00:04:36,800 Speaker 1: tied to the country. I'm Shnoli Bassak for Bloomberg day Break. 83 00:04:36,800 --> 00:04:39,040 Speaker 1: All right, Shinali, thank you when we get another snapshot 84 00:04:39,040 --> 00:04:41,080 Speaker 1: this morning on the health of the U s economy 85 00:04:41,200 --> 00:04:43,960 Speaker 1: with the March reading on retail sales here the preview 86 00:04:44,080 --> 00:04:47,320 Speaker 1: is Bloomberg's Michael McKee. March was a month of skyrocket 87 00:04:47,320 --> 00:04:50,880 Speaker 1: and gasoline prices, so dollars collected at service stations should 88 00:04:50,920 --> 00:04:54,000 Speaker 1: lead the forecast gains, but that may mean less spent 89 00:04:54,080 --> 00:04:57,800 Speaker 1: on other categories. A Chicago Fed index that tracks retail 90 00:04:57,880 --> 00:05:01,520 Speaker 1: sales suggests factor of gasoline, autos and March retail sales 91 00:05:01,520 --> 00:05:04,520 Speaker 1: may have declined significantly. To get a clearer picture of 92 00:05:04,520 --> 00:05:08,000 Speaker 1: American spending, will also have to factor out inflation, which 93 00:05:08,040 --> 00:05:11,200 Speaker 1: is at its highest since nine Given the Fed is 94 00:05:11,240 --> 00:05:14,400 Speaker 1: expected to raise interest rates aggressively to bring inflation down, 95 00:05:14,800 --> 00:05:18,839 Speaker 1: some retail strength would reassure policymakers the economy isn't about 96 00:05:18,839 --> 00:05:22,520 Speaker 1: to go into recession. Michael McKee, Bloomberg Daybreak. Sorry Michael, 97 00:05:22,520 --> 00:05:24,640 Speaker 1: thank you well. Please join Mike later this morning on 98 00:05:24,680 --> 00:05:27,160 Speaker 1: Bloomberg Surveillance when he speaks live with New York Fan 99 00:05:27,240 --> 00:05:29,880 Speaker 1: President John Williams. It's coming up at forty five am 100 00:05:29,920 --> 00:05:32,920 Speaker 1: all street time on both Bloomberg Radio and television. Of course, 101 00:05:32,920 --> 00:05:35,359 Speaker 1: taming inflation is front and center for the Fed. Karen 102 00:05:35,400 --> 00:05:38,440 Speaker 1: and Treasury Secretary Janet Yellen says the Central Bank does 103 00:05:38,480 --> 00:05:41,640 Speaker 1: have a tough balancing act ahead, but it can be done. 104 00:05:42,200 --> 00:05:47,320 Speaker 1: They will um try to maintain strong labor markets while 105 00:05:47,360 --> 00:05:52,000 Speaker 1: bringing inflation down. But and it has been done in 106 00:05:52,040 --> 00:05:56,479 Speaker 1: the past. It's not an impossible combination, but um it 107 00:05:56,520 --> 00:05:59,800 Speaker 1: will require skill and also good luck. Janet Yellen says 108 00:05:59,800 --> 00:06:02,880 Speaker 1: she'll convene a meeting of top international financial officials next 109 00:06:02,920 --> 00:06:05,880 Speaker 1: week to address a global food security crisis stemming from 110 00:06:05,920 --> 00:06:09,320 Speaker 1: record prices overseas. Nathan, we get a policy decision from 111 00:06:09,320 --> 00:06:12,400 Speaker 1: the European Central Bank this morning. Economists say the ECB 112 00:06:12,520 --> 00:06:16,120 Speaker 1: will almost certainly stand pat They're likely prioritize to fight 113 00:06:16,160 --> 00:06:18,600 Speaker 1: against inflation of our risk to the economy caused by 114 00:06:18,600 --> 00:06:21,320 Speaker 1: the war in Ukraine. Meantime, karent inflation may soon have 115 00:06:21,400 --> 00:06:24,440 Speaker 1: you paying higher prices at Amazon. Joining us here live 116 00:06:24,480 --> 00:06:27,040 Speaker 1: to explain that. As Bloomberg's rnitda Young, Good morning, Ranita, 117 00:06:27,040 --> 00:06:30,400 Speaker 1: Good morning, Nathan. Amazon merchants were already grappling with cost 118 00:06:30,440 --> 00:06:33,480 Speaker 1: related fee hikes that took effect in January and average 119 00:06:33,520 --> 00:06:36,840 Speaker 1: five percent, And now Bloomberg News has learned Amazon is 120 00:06:36,880 --> 00:06:40,040 Speaker 1: adding a five percent fuel and inflation fee on merchants 121 00:06:40,040 --> 00:06:43,240 Speaker 1: that use its shipping services. That's putting pressure on sellers 122 00:06:43,240 --> 00:06:45,960 Speaker 1: to raise prices. It's scheduled to kick in on April. 123 00:06:46,839 --> 00:06:49,320 Speaker 1: Amazon joins a range of companies who've had to take 124 00:06:49,360 --> 00:06:53,359 Speaker 1: action to offset rising costs. Airlines are raising ticket prices, 125 00:06:53,440 --> 00:06:56,719 Speaker 1: Uber and Lift added fuel surcharges and s FedEx and 126 00:06:56,880 --> 00:07:00,159 Speaker 1: Ups have also raised their prices. Live in New York. 127 00:07:00,240 --> 00:07:02,040 Speaker 1: I'm gonna need a young Bloomberg day all right, we 128 00:07:02,120 --> 00:07:04,240 Speaker 1: need to thank you. Bloomberg Daybreak is brought to you 129 00:07:04,279 --> 00:07:06,640 Speaker 1: by b n Y Melon's Pershing learned why the world's 130 00:07:06,680 --> 00:07:10,400 Speaker 1: most sophisticated wealth management and institutional firms rely on Pershing 131 00:07:10,640 --> 00:07:14,040 Speaker 1: to help them improve profitability, create efficiency, attract talent, and 132 00:07:14,080 --> 00:07:18,680 Speaker 1: manage risk at pershing dot com. You're listening to Bloomberg 133 00:07:18,720 --> 00:07:24,480 Speaker 1: Daybreak and it sounds like so seven on Wall Street 134 00:07:24,520 --> 00:07:27,600 Speaker 1: got some showers in Central Park fifty eight degrees. Let's 135 00:07:27,600 --> 00:07:30,560 Speaker 1: get more on what we know about the Brooklyn subway 136 00:07:30,600 --> 00:07:32,600 Speaker 1: suspect and more on what's happening in New York and 137 00:07:32,640 --> 00:07:35,120 Speaker 1: around the world. Michael bar back with us this morning. Michael, 138 00:07:35,200 --> 00:07:37,160 Speaker 1: thank you very much. Nathan. We're learning more about the 139 00:07:37,160 --> 00:07:40,840 Speaker 1: suspected Brooklyn subway shooter who was arrested yesterday in Manhattan 140 00:07:41,240 --> 00:07:45,480 Speaker 1: and East Village hardware store manager says he helped Megan happen. 141 00:07:45,800 --> 00:07:48,680 Speaker 1: Francisco Pebli says he was working at a store when 142 00:07:48,680 --> 00:07:51,840 Speaker 1: he looked up and saw the suspect. Frank James walked 143 00:07:51,960 --> 00:07:55,800 Speaker 1: right by. He wasn't like a normal person if he 144 00:07:55,880 --> 00:07:59,920 Speaker 1: didn't resist anything. He just like staying calm and then 145 00:08:02,120 --> 00:08:04,720 Speaker 1: Reblood notified police who were down the block, and minutes 146 00:08:04,800 --> 00:08:08,520 Speaker 1: later the suspect was in custody. NYPD Chief of Detectives 147 00:08:08,560 --> 00:08:12,000 Speaker 1: James Essex says James has a record. He's arrest history 148 00:08:12,040 --> 00:08:16,400 Speaker 1: in New York is nine prior arrests dating from nineteen 149 00:08:16,640 --> 00:08:22,400 Speaker 1: nine two. Chief Essex also says James was arrested several 150 00:08:22,440 --> 00:08:25,520 Speaker 1: times in New Jersey. The New York State Health Department 151 00:08:25,560 --> 00:08:28,600 Speaker 1: says two new O macron sub variants that appear even 152 00:08:28,640 --> 00:08:32,480 Speaker 1: more transmissible than the highly contagious b A two are 153 00:08:32,559 --> 00:08:35,320 Speaker 1: driving an uptick in COVID cases in the state. The 154 00:08:35,360 --> 00:08:38,680 Speaker 1: department estimates that they have twenty three percent to seven 155 00:08:39,120 --> 00:08:42,120 Speaker 1: growth advantage over the b A two variant that was 156 00:08:42,320 --> 00:08:47,200 Speaker 1: itself more infectious than the original omicron variant. And Ohio 157 00:08:47,240 --> 00:08:50,000 Speaker 1: man who acknowledges he joined the mob at the US 158 00:08:50,080 --> 00:08:53,520 Speaker 1: Capitol last year and ignored a variety of warning signs, 159 00:08:53,559 --> 00:08:57,520 Speaker 1: says he was only following orders from the President Donald Trump. 160 00:08:57,720 --> 00:09:00,160 Speaker 1: The man, thirty eight year old Dustin Byron Thompson, and 161 00:09:00,160 --> 00:09:03,880 Speaker 1: testified during its trial in federal court in Washington. Thompson's 162 00:09:03,920 --> 00:09:06,080 Speaker 1: defense team is the first to argue that Trump and 163 00:09:06,160 --> 00:09:10,199 Speaker 1: others were responsible for the mob's actions. Traffic between Mexico 164 00:09:10,280 --> 00:09:13,240 Speaker 1: and the US has been snarled since Texas Governor Greg 165 00:09:13,280 --> 00:09:17,880 Speaker 1: Abbott ordered commercial trucks undergo extra inspections. Is part of 166 00:09:17,880 --> 00:09:21,439 Speaker 1: the Republican governor's fight with the Biden administration over immigration. 167 00:09:21,800 --> 00:09:25,280 Speaker 1: Texas law enforcement is apprehending the illegal immigrants that got 168 00:09:25,280 --> 00:09:30,280 Speaker 1: away from the border patrol, including previously convicted murderers, previously 169 00:09:30,280 --> 00:09:35,280 Speaker 1: convicted child rapists, kidnappers, drug traffickers, MS thirteen gang members, 170 00:09:35,520 --> 00:09:39,120 Speaker 1: and cartel gang members. Governor Rabbit says the standoff has 171 00:09:39,200 --> 00:09:43,240 Speaker 1: stoked warnings by trade groups and experts that US grocery 172 00:09:43,280 --> 00:09:47,040 Speaker 1: shoppers could soon notice shortages on shelves and higher prices. 173 00:09:47,600 --> 00:09:50,080 Speaker 1: Global News twenty four hours a day on air and 174 00:09:50,240 --> 00:09:53,760 Speaker 1: on Bloomberg Quicktake, powered by more than seven hundred journalists 175 00:09:53,760 --> 00:09:56,440 Speaker 1: and analysts more than a hundred, twenty countries. Michael Barr, 176 00:09:56,480 --> 00:10:02,920 Speaker 1: this is Bloomberg Games, Okay, Michael, thank you. Count up 177 00:10:02,920 --> 00:10:04,760 Speaker 1: to six ten on Wall Street Time for the Bloomberg 178 00:10:04,840 --> 00:10:08,280 Speaker 1: Sports Update with John sash Ower A Nathan Yankees beaten 179 00:10:08,280 --> 00:10:11,559 Speaker 1: by the Blue Jays, more specifically beaten by one Blue 180 00:10:11,640 --> 00:10:15,840 Speaker 1: Jay Pats leaving off this seat. Dathan Elizaka's first pitches swam? 181 00:10:15,880 --> 00:10:20,920 Speaker 1: How did deep Bluff field? That phone is gone? Vladimir 182 00:10:21,000 --> 00:10:30,000 Speaker 1: Guerrero Jr. With the three Holber game night. He does 183 00:10:30,040 --> 00:10:32,560 Speaker 1: it in the Bronx Jays Radio the call. He also 184 00:10:32,600 --> 00:10:34,520 Speaker 1: had a three home run game last season. Two of 185 00:10:34,559 --> 00:10:37,079 Speaker 1: the home runs, plus the double came against Garrett Cole. 186 00:10:37,200 --> 00:10:39,720 Speaker 1: Most of it all came after Guerrero cut his hand 187 00:10:40,160 --> 00:10:42,400 Speaker 1: on a play in the field. Toronto one, six to four. 188 00:10:42,840 --> 00:10:44,760 Speaker 1: It's early in the season, but a couple of Yankee 189 00:10:44,800 --> 00:10:47,520 Speaker 1: concerns too much reliance on the home run. They hit 190 00:10:47,559 --> 00:10:50,480 Speaker 1: three Anthony Rizzo Aaron Judge in gladbor Tores, but they 191 00:10:50,520 --> 00:10:54,200 Speaker 1: score only one other run. Also, Kyle Agasha Yoka promoted 192 00:10:54,240 --> 00:10:57,600 Speaker 1: the starting catcher Isaiah Kiner Felfa brought it into the 193 00:10:57,600 --> 00:11:00,520 Speaker 1: new shortstop. Together, they are a combined two of thirty 194 00:11:00,559 --> 00:11:03,000 Speaker 1: five series ends. Tonight, Mets are off. They have their 195 00:11:03,000 --> 00:11:05,320 Speaker 1: whole opener tomorrow to include the unveiling of the Tom 196 00:11:05,400 --> 00:11:08,440 Speaker 1: Siever's statue. It will all happen on the seventy fifth 197 00:11:08,440 --> 00:11:11,320 Speaker 1: anniversary of Jackie Robinson's debut in Brooklyn. The Mets at 198 00:11:11,400 --> 00:11:14,120 Speaker 1: up five and two road trip they wanted Philadelphia nine 199 00:11:14,160 --> 00:11:16,920 Speaker 1: to six. Peter Alonso followed up his Grand Slam the 200 00:11:16,960 --> 00:11:19,160 Speaker 1: other day with a three run homer. Five RBIs Max 201 00:11:19,160 --> 00:11:21,800 Speaker 1: sernser Is now two and oh. Also in Philly, Rangers 202 00:11:21,800 --> 00:11:23,800 Speaker 1: won four and up in twenty eight says for Alex 203 00:11:23,880 --> 00:11:27,440 Speaker 1: Georgie Copo CaCO scored the first two goals. NBA play 204 00:11:27,480 --> 00:11:29,760 Speaker 1: in two more wins by the home teams Atlanta by 205 00:11:29,840 --> 00:11:33,400 Speaker 1: twenty nine, ending Charlotte's season. New Orleans took out San Antonio's. 206 00:11:33,400 --> 00:11:36,680 Speaker 1: In tomorrow, HAPs visit Cleveland, Pelicans at the Clippers and 207 00:11:36,679 --> 00:11:40,920 Speaker 1: the winners advanced John Stash were Bloomberg Scorts, Nathan Okay, John, 208 00:11:40,960 --> 00:11:42,920 Speaker 1: thank you right now. S and P futures are up 209 00:11:43,000 --> 00:11:46,000 Speaker 1: one point down, futures up fifty three, Nestex futures are 210 00:11:46,080 --> 00:11:49,360 Speaker 1: higher by eighteen points. Looking at the tenure, it is 211 00:11:49,480 --> 00:11:52,400 Speaker 1: down one thirty second with the yield two point seven 212 00:11:52,520 --> 00:11:55,080 Speaker 1: zero percent. The yield on the two year right now 213 00:11:55,120 --> 00:11:57,800 Speaker 1: two point three four percent, and nime X screwed is 214 00:11:57,880 --> 00:12:00,000 Speaker 1: down one in a quarter percent, down to dollar thirty 215 00:12:00,400 --> 00:12:08,760 Speaker 1: to a hundred two dollars a barrel. This is Bloomberg, Bloomberg, 216 00:12:08,760 --> 00:12:10,800 Speaker 1: gay Berg brought to you by Ancient Accountants and Advisor's 217 00:12:10,840 --> 00:12:13,720 Speaker 1: challenging times call for proactive advisors who help minimize taxes, 218 00:12:13,760 --> 00:12:16,760 Speaker 1: increased cash phone create opportunities for the future of your business. 219 00:12:17,120 --> 00:12:25,480 Speaker 1: Visit Ancient dot com markets, headlines and breaking news twenty 220 00:12:25,559 --> 00:12:28,360 Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg 221 00:12:28,440 --> 00:12:31,959 Speaker 1: Business at and at Bloomberg Quicktake, This is a Bloomberg 222 00:12:32,080 --> 00:12:40,520 Speaker 1: business flash. Hey, good morning. I'm Karen Moscow, and we 223 00:12:40,600 --> 00:12:44,560 Speaker 1: do have headlines crossing the Bloomberg now involving Twitter Elon 224 00:12:44,679 --> 00:12:48,080 Speaker 1: Musk offering to buy Twitter for fifty four dollars twenty 225 00:12:48,160 --> 00:12:50,920 Speaker 1: cents a share in cash. This is according to a 226 00:12:51,040 --> 00:12:53,760 Speaker 1: regulatory filing in a letter to the Chairman of the 227 00:12:53,880 --> 00:12:58,720 Speaker 1: board must saying quote Twitter has extraordinary potential. I will 228 00:12:59,040 --> 00:13:02,440 Speaker 1: unlock it. Twitter shares are up thirteen percent right now 229 00:13:02,559 --> 00:13:05,160 Speaker 1: in early trading, and we're going to get full details 230 00:13:05,200 --> 00:13:07,800 Speaker 1: and perspective on this with Gene Monster of Loop Ventures 231 00:13:08,200 --> 00:13:11,199 Speaker 1: in just moments from now. We're also watching United health 232 00:13:11,240 --> 00:13:13,320 Speaker 1: Group and raised his forecast for the year as double 233 00:13:13,360 --> 00:13:16,600 Speaker 1: digit revenue growth and lower operating costs help the healthcare 234 00:13:16,679 --> 00:13:20,199 Speaker 1: giant beat analysts estimates SMP future is a little change 235 00:13:20,280 --> 00:13:22,439 Speaker 1: this morning. Down Future is up sixty one points and 236 00:13:22,520 --> 00:13:26,000 Speaker 1: nasdack futures that will change. Tenure Treasury down to thirty seconds, 237 00:13:26,160 --> 00:13:28,319 Speaker 1: l two point seven zero percent, yield on the two 238 00:13:28,400 --> 00:13:31,199 Speaker 1: year two point three four percent, and NIMEX screwed oil 239 00:13:31,600 --> 00:13:34,880 Speaker 1: is down one point four percent. Again. Twitter shares up 240 00:13:34,920 --> 00:13:37,120 Speaker 1: more than well twelve and a half percent in early 241 00:13:37,240 --> 00:13:39,840 Speaker 1: trading right now, and as a Bloomberg Business flash, now, 242 00:13:39,880 --> 00:13:42,080 Speaker 1: here's Michael Barr with more on what's going on around 243 00:13:42,120 --> 00:13:44,439 Speaker 1: the world. Michael here in the suspect that rested in 244 00:13:44,480 --> 00:13:48,520 Speaker 1: the Brooklyn subway shooting the left ten people wounded by gunfire. Also, 245 00:13:48,679 --> 00:13:52,040 Speaker 1: he left behind a trope of angry YouTube videos. Please 246 00:13:52,080 --> 00:13:55,360 Speaker 1: we're studying them for a possible motive. Frank James vented 247 00:13:55,360 --> 00:13:58,920 Speaker 1: about racism in America, his struggles with mental illness, New 248 00:13:59,040 --> 00:14:02,040 Speaker 1: York City's New Air and nine eleven, among other things. 249 00:14:02,440 --> 00:14:05,880 Speaker 1: In MLB, the Yankees and Orioles, lost, Mets, Nationals, Red 250 00:14:05,920 --> 00:14:09,480 Speaker 1: Sox A's Giants all one in the NHL, the Rangers. 251 00:14:09,559 --> 00:14:12,440 Speaker 1: One Global News twenty four hours a day on air 252 00:14:12,559 --> 00:14:15,880 Speaker 1: and on Bloomberg Quicktake, powered by more than twenty seven 253 00:14:15,920 --> 00:14:18,360 Speaker 1: hundred journalists, and analysts in more than a hundred twenty 254 00:14:18,440 --> 00:14:21,040 Speaker 1: countries on Michael bar This is Bloomberg Nian Michael, thank you. 255 00:14:21,200 --> 00:14:23,480 Speaker 1: It is six nineteen on Wall Street Live from the 256 00:14:23,480 --> 00:14:28,240 Speaker 1: Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak with breaking 257 00:14:28,320 --> 00:14:31,600 Speaker 1: news in the m and A space. Elon Musk is 258 00:14:31,720 --> 00:14:34,800 Speaker 1: offering to buy Twitter for fifty four dollars in twenty 259 00:14:34,840 --> 00:14:37,760 Speaker 1: cents to share. He didn't announce it on the social 260 00:14:37,840 --> 00:14:40,960 Speaker 1: media platform. He announced it through an SEC filing. Let's 261 00:14:41,000 --> 00:14:43,840 Speaker 1: get some initial reaction now. Gene Munster joins us live, 262 00:14:43,920 --> 00:14:46,560 Speaker 1: the co founder of Loop Ventures. Just a couple of 263 00:14:46,600 --> 00:14:50,880 Speaker 1: headlines crossing on this announcement. Gene Elon Musk, the Tesla 264 00:14:51,040 --> 00:14:53,640 Speaker 1: and space X CEO, says he does not have confidence 265 00:14:53,680 --> 00:14:57,840 Speaker 1: in Twitter's management. He says Twitter has extraordinary potential. I 266 00:14:58,120 --> 00:15:03,400 Speaker 1: will unlock it. Your action. Welcome to the world of 267 00:15:03,880 --> 00:15:08,400 Speaker 1: Elon Musk. Once again here unpredictable by design, and I 268 00:15:08,520 --> 00:15:12,360 Speaker 1: think his approach is to uh think big. He's doing 269 00:15:12,440 --> 00:15:16,840 Speaker 1: that here. My reaction is that the premium that he's 270 00:15:16,920 --> 00:15:22,600 Speaker 1: offering is somewhat modest premium. This is a cential where 271 00:15:22,640 --> 00:15:26,800 Speaker 1: the stock spiked too recently and so um, I think 272 00:15:26,880 --> 00:15:30,400 Speaker 1: the uh, this is not a slam dunk that it 273 00:15:30,520 --> 00:15:34,800 Speaker 1: gets done at this price, and probably safe to say 274 00:15:34,880 --> 00:15:38,040 Speaker 1: that this is not his final price either. I suspect 275 00:15:38,120 --> 00:15:40,240 Speaker 1: he's not going to lead with his final price again, 276 00:15:40,360 --> 00:15:44,440 Speaker 1: just a modest premium to where the stock was yesterday 277 00:15:44,760 --> 00:15:48,200 Speaker 1: versus and essentially where it was at the peak when 278 00:15:48,240 --> 00:15:51,440 Speaker 1: it's spiked this week. So look for this to uh, 279 00:15:51,840 --> 00:15:54,080 Speaker 1: you know, kind of take on some more contours where 280 00:15:54,200 --> 00:15:57,000 Speaker 1: he may have to raise his bid. And I think 281 00:15:57,080 --> 00:16:00,080 Speaker 1: the other piece too is that is surprising to me 282 00:16:00,240 --> 00:16:03,720 Speaker 1: that the piece that he's putting a pusher, bigger push 283 00:16:03,840 --> 00:16:06,360 Speaker 1: is not surprising. The one thing that is surprising is 284 00:16:06,440 --> 00:16:10,000 Speaker 1: that this is a time think, you know, he's really 285 00:16:10,520 --> 00:16:13,400 Speaker 1: wants to take all of this on here. And I 286 00:16:13,560 --> 00:16:17,600 Speaker 1: had previously predicted that he wanted to have a bigger role, 287 00:16:17,680 --> 00:16:20,840 Speaker 1: he wanted to have an influence even after he stepped 288 00:16:21,160 --> 00:16:24,000 Speaker 1: off of the board. Um. I thought that he just 289 00:16:24,080 --> 00:16:26,400 Speaker 1: still wanted to have an influence. But this is a 290 00:16:26,520 --> 00:16:31,440 Speaker 1: much different contour to it, and that part is surprised 291 00:16:31,480 --> 00:16:35,400 Speaker 1: because there's a capacity question there. Of course, once you 292 00:16:35,720 --> 00:16:40,920 Speaker 1: layer in Tesla and SpaceX. Now we're watching the reaction 293 00:16:41,240 --> 00:16:43,880 Speaker 1: in the Twitter shares in the pre market, they had 294 00:16:43,960 --> 00:16:46,880 Speaker 1: spiked as much as on the news right now in 295 00:16:46,960 --> 00:16:50,480 Speaker 1: early trading their up twelve. Of course, Musk on his 296 00:16:50,600 --> 00:16:53,200 Speaker 1: Twitter feed has thrown a lot of spaghetti on the 297 00:16:53,240 --> 00:16:56,560 Speaker 1: wall in terms of changes that may be real or 298 00:16:56,600 --> 00:16:59,240 Speaker 1: imagine that he might like to see, from adding an 299 00:16:59,360 --> 00:17:02,680 Speaker 1: edit button for tweets to uh. At one point, he 300 00:17:03,040 --> 00:17:06,400 Speaker 1: floated the idea of turning Twitter's existing headquarters in Silicon 301 00:17:06,560 --> 00:17:09,840 Speaker 1: Valley into a homeless shelter. What kind of changes do 302 00:17:10,040 --> 00:17:16,359 Speaker 1: you think concretely and elon Musk, majority stakeholder Twitter, would 303 00:17:16,680 --> 00:17:21,520 Speaker 1: look like. I think there are two essential pieces to it. 304 00:17:21,680 --> 00:17:24,000 Speaker 1: First is that I think he's gonna make it so 305 00:17:24,680 --> 00:17:29,159 Speaker 1: it's harder for Twitter to manage the content on on 306 00:17:29,520 --> 00:17:33,280 Speaker 1: on the platform. This is something that is very important, Jim. 307 00:17:33,359 --> 00:17:35,160 Speaker 1: This is why we are here in the first place. 308 00:17:35,720 --> 00:17:38,359 Speaker 1: It is his view that Twitter has been punitive to 309 00:17:38,840 --> 00:17:41,960 Speaker 1: some people and in terms of kind of monitoring what 310 00:17:42,040 --> 00:17:43,840 Speaker 1: they're saying. And so I think that that's the first 311 00:17:43,920 --> 00:17:47,360 Speaker 1: and most obvious change that that would happen. That would 312 00:17:47,400 --> 00:17:50,280 Speaker 1: definitely happen. I think there's there's a second question about 313 00:17:50,359 --> 00:17:53,800 Speaker 1: monetization and the growth rate and Twitter has been relatively 314 00:17:53,880 --> 00:17:57,320 Speaker 1: modest over the past few years. It just it really 315 00:17:57,359 --> 00:17:59,360 Speaker 1: hasn't grown to this at the same pace of other 316 00:17:59,560 --> 00:18:04,440 Speaker 1: social platforms obviously, like TikTok or Snapchat. And I think 317 00:18:04,480 --> 00:18:07,760 Speaker 1: that there's a question we talked about unlocking the value, uh, 318 00:18:07,920 --> 00:18:11,040 Speaker 1: that there could be a monetization question. There isn't an 319 00:18:11,080 --> 00:18:14,240 Speaker 1: obvious one where this has historically not been done in 320 00:18:14,359 --> 00:18:18,080 Speaker 1: social but just given Eon Musk's first principles approach to 321 00:18:18,680 --> 00:18:20,920 Speaker 1: everything he does, and the first principles means just because 322 00:18:20,920 --> 00:18:24,160 Speaker 1: it hasn't been done before doesn't mean you shouldn't try 323 00:18:24,240 --> 00:18:26,919 Speaker 1: something in the future. And there's the first principles approach 324 00:18:26,960 --> 00:18:29,800 Speaker 1: that he could take with just essentially just charging people 325 00:18:29,920 --> 00:18:32,040 Speaker 1: to be on Twitter. You know, would you pay a 326 00:18:32,119 --> 00:18:34,359 Speaker 1: month to be a dollar per month for example, to 327 00:18:34,400 --> 00:18:36,160 Speaker 1: be on Twitter? But I guesses a lot of people 328 00:18:36,200 --> 00:18:40,080 Speaker 1: would and really kind of stress test to monetization side 329 00:18:40,119 --> 00:18:42,960 Speaker 1: of it, And so that's probably where the biggest value 330 00:18:43,000 --> 00:18:46,080 Speaker 1: could be created. Uh, if it is in fact the 331 00:18:46,160 --> 00:18:48,560 Speaker 1: town square that he describes it as and he's able 332 00:18:48,600 --> 00:18:53,240 Speaker 1: to actually monetize users for it, I could see it 333 00:18:53,320 --> 00:18:56,720 Speaker 1: happened about thirty seconds left here Gene Obviously Elon must 334 00:18:56,720 --> 00:18:58,720 Speaker 1: can afford to buy out Twitter. Do you think you 335 00:18:58,800 --> 00:19:05,400 Speaker 1: can see some competition and from other potential hostile takeover candidates. Um, 336 00:19:05,800 --> 00:19:10,679 Speaker 1: I think less likely that that happens because it's been 337 00:19:10,800 --> 00:19:13,240 Speaker 1: depressed before, and I don't think there was people circling. 338 00:19:13,280 --> 00:19:15,320 Speaker 1: I think you're going to see other emin a activity 339 00:19:16,080 --> 00:19:18,400 Speaker 1: more broadly with this pullback, with a lot of these 340 00:19:18,560 --> 00:19:22,719 Speaker 1: you know, a lot of tech stocks are down. Um, 341 00:19:23,400 --> 00:19:26,320 Speaker 1: Twitter's down a lot, But I don't think it solves 342 00:19:26,359 --> 00:19:29,639 Speaker 1: in that same category of where it's easy pickings for 343 00:19:30,000 --> 00:19:35,240 Speaker 1: a for a bitting more. Thanks for this, Jane. Great 344 00:19:35,280 --> 00:19:37,600 Speaker 1: to have you on with us as we just got 345 00:19:37,720 --> 00:19:41,320 Speaker 1: this news breaking minutes ago, Elon Musk making what he 346 00:19:41,440 --> 00:19:45,359 Speaker 1: calls his best and final offer to buy Twitter, saying 347 00:19:45,520 --> 00:19:48,479 Speaker 1: it has extraordinary potential and he will unlock it, offering 348 00:19:48,560 --> 00:19:51,800 Speaker 1: fifty four dollars in twenty cents a share for the 349 00:19:51,920 --> 00:19:55,480 Speaker 1: social network Twitter in the pre market up nearly eleven 350 00:19:55,520 --> 00:19:59,159 Speaker 1: and a half percent on the news. Stay with us 351 00:19:59,200 --> 00:20:08,520 Speaker 1: for more. Are listening to Bloomberg Daybreak Bloomberg eleven three 352 00:20:08,520 --> 00:20:10,680 Speaker 1: oh weather showers and storms this afternoon with a high 353 00:20:10,680 --> 00:20:14,680 Speaker 1: near eighty degrees. Sunshine returns tomorrow upper sixties will stand. 354 00:20:14,680 --> 00:20:17,600 Speaker 1: They up for sixties Saturday with a few more showers possible. 355 00:20:17,880 --> 00:20:23,760 Speaker 1: Right now fifty nine in Central Park, broadcasting live from 356 00:20:23,840 --> 00:20:27,959 Speaker 1: the Bloomberg Interactive Brokers Studio in New York, Bloomberg Elving 357 00:20:28,000 --> 00:20:32,560 Speaker 1: Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one, 358 00:20:32,600 --> 00:20:35,600 Speaker 1: O six one to San Francisco Bloomberg and M sixty 359 00:20:35,720 --> 00:20:38,919 Speaker 1: to the Country Sirius XM CHO one nineteen and around 360 00:20:39,000 --> 00:20:42,520 Speaker 1: the globe the Bloomberg Business at and Bloomberg Radio dot com. 361 00:20:42,920 --> 00:20:51,720 Speaker 1: This is Bloomberg Daybreak six thirty on Wall Street. Good morning, 362 00:20:51,760 --> 00:20:54,520 Speaker 1: I'm Nathan Hagar and I'm Karen Moscow, and we're just 363 00:20:54,600 --> 00:20:56,960 Speaker 1: about three hours away from the open of US trading. 364 00:20:57,000 --> 00:20:58,840 Speaker 1: It's time for the five things that you need to notice. 365 00:20:58,840 --> 00:21:02,639 Speaker 1: Start your day. Bralty you by ib KR Investment Advisers 366 00:21:02,640 --> 00:21:05,560 Speaker 1: switched to interact your brokers for lowest cost global trading 367 00:21:05,600 --> 00:21:09,400 Speaker 1: and turnkey custody solutions, no ticket charges at no conflicts 368 00:21:09,480 --> 00:21:12,399 Speaker 1: of your interests at ibk R dot com. Slash r 369 00:21:12,560 --> 00:21:16,720 Speaker 1: I a up first breaking and news involving Twitter and 370 00:21:16,840 --> 00:21:20,640 Speaker 1: Elon Musk. The Tesla CEO is launching a hostile takeover 371 00:21:20,760 --> 00:21:23,960 Speaker 1: of the social media company, and Bloomberg's Renada Young joins 372 00:21:24,040 --> 00:21:26,680 Speaker 1: US Live with its developing story. Good Morning Renda, Good 373 00:21:26,720 --> 00:21:29,760 Speaker 1: morning Karen. The world's richest man is offering about forty 374 00:21:29,840 --> 00:21:33,119 Speaker 1: three billion dollars for Twitter. Elon Musk calls it his 375 00:21:33,280 --> 00:21:36,560 Speaker 1: best and final offer, and it represents an eighteen percent 376 00:21:36,680 --> 00:21:40,120 Speaker 1: premium to Twitter's closing price yesterday, and it's thirty seven 377 00:21:40,200 --> 00:21:43,520 Speaker 1: percent above the price before Musk disclosed a stake in 378 00:21:43,560 --> 00:21:46,720 Speaker 1: the company. The Tesla CEO announced the offer of fifty 379 00:21:46,760 --> 00:21:49,199 Speaker 1: four dollars and twenty cents of share in a filing 380 00:21:49,240 --> 00:21:52,960 Speaker 1: with the SEC. He says Twitter has extraordinary potential and 381 00:21:53,160 --> 00:21:55,960 Speaker 1: he will unlock it. Live in New York, I'm gonna 382 00:21:55,960 --> 00:21:59,480 Speaker 1: need a Young Bloomberg day break a, Renita, thanks for 383 00:21:59,560 --> 00:22:02,239 Speaker 1: watching shares of Twitter and early trading. Right now they 384 00:22:02,240 --> 00:22:06,359 Speaker 1: are up about eleven percent. Let's you have to developing 385 00:22:06,400 --> 00:22:08,520 Speaker 1: story out of New York City now, where police arrested 386 00:22:08,600 --> 00:22:12,000 Speaker 1: suspected subway shooter Frank James. Mayor Eric Adams released a 387 00:22:12,040 --> 00:22:20,960 Speaker 1: statement following the arrest. Myself got Mayor Adams isolating after 388 00:22:21,040 --> 00:22:24,520 Speaker 1: a positive COVID test. City Police Commissioner Keyshawn Sewell also 389 00:22:24,560 --> 00:22:27,960 Speaker 1: addressed the arrest. We used every resource at our disposal 390 00:22:28,359 --> 00:22:32,280 Speaker 1: to gather and process significant evidence that directly links Mr 391 00:22:32,440 --> 00:22:35,080 Speaker 1: James to the shooting. We were able to shrink his 392 00:22:35,200 --> 00:22:38,240 Speaker 1: world quickly. There was nowhere left for him to write. 393 00:22:38,280 --> 00:22:40,919 Speaker 1: Police Commissioners. School says the NYPD worked with many law 394 00:22:41,000 --> 00:22:44,720 Speaker 1: enforcement partners to make the arrest. Meantime, and Washington naked Nathan, 395 00:22:44,800 --> 00:22:48,119 Speaker 1: the focus remains on Ukraine. US President Biden announced eight 396 00:22:48,200 --> 00:22:51,520 Speaker 1: hundred million dollars in additional US military aid for Ukraine, 397 00:22:51,760 --> 00:22:54,920 Speaker 1: while Europe continues to provide cash for weapons. It comes 398 00:22:54,960 --> 00:22:57,600 Speaker 1: as Russia warrants of deploying nuclear weapons in and around 399 00:22:57,600 --> 00:23:01,160 Speaker 1: the Baltic siege. Now's if Finland and sweet enjoyed NATO 400 00:23:01,320 --> 00:23:04,080 Speaker 1: the country say they're stepping up considering of doing so 401 00:23:04,640 --> 00:23:08,119 Speaker 1: as finding continues Russia's repositioning forces for renewed attacks in 402 00:23:08,200 --> 00:23:10,840 Speaker 1: the eastern and southern parts of Ukraine. On Wall Street, 403 00:23:10,880 --> 00:23:14,040 Speaker 1: Cairn for Big Banks release earnings today, Morgan Stanley, Goldman, 404 00:23:14,119 --> 00:23:17,480 Speaker 1: Sachs City Group, and Wells Fargo all report following yesterday's 405 00:23:17,560 --> 00:23:21,440 Speaker 1: mixed report from JP Morgan and Futures this morning, they're 406 00:23:21,480 --> 00:23:24,600 Speaker 1: little changed and the tenure Treasury is up one thirty 407 00:23:24,640 --> 00:23:27,280 Speaker 1: second deal two point six nine percent. That's the five 408 00:23:27,320 --> 00:23:29,200 Speaker 1: things you need to know to start your day, Brought 409 00:23:29,240 --> 00:23:32,840 Speaker 1: to you by Interactive Brokers, Straight Ahead, your latest local headlines, 410 00:23:32,880 --> 00:23:38,440 Speaker 1: plus a check of sports. And this is Bloomberg. Karen, 411 00:23:38,480 --> 00:23:40,840 Speaker 1: Thanks sixty three on Wall Street, fifty nine degrees in 412 00:23:41,000 --> 00:23:43,639 Speaker 1: Central Park. Let's get more details now on the Brooklyn 413 00:23:43,640 --> 00:23:46,720 Speaker 1: subway suspect Michael Barr is back with us. Good morning Michael, 414 00:23:46,960 --> 00:23:49,719 Speaker 1: Good morning Nathan. The suspect arrested in the Brooklyn subway 415 00:23:49,760 --> 00:23:52,880 Speaker 1: shooting that left ten people wounded by gunfire also left 416 00:23:52,920 --> 00:23:57,840 Speaker 1: behind a trove of angry YouTube videos. Police were studying 417 00:23:57,920 --> 00:24:00,920 Speaker 1: them for possible motive. Frank j seemed to end about 418 00:24:00,960 --> 00:24:04,200 Speaker 1: nearly everything in his videos, Racism in America, his struggles 419 00:24:04,240 --> 00:24:07,720 Speaker 1: with mental illness, New York City's new mayor nine eleven, 420 00:24:07,840 --> 00:24:12,160 Speaker 1: Russia's invasion of Ukraine, and black women. In one, he said, 421 00:24:12,320 --> 00:24:15,399 Speaker 1: this nation was born in violence. It's kept alive by 422 00:24:15,560 --> 00:24:18,680 Speaker 1: violence or the threat thereof, and it's going to die 423 00:24:18,840 --> 00:24:22,080 Speaker 1: a violent death in my bed. Chief of Detectives James 424 00:24:22,240 --> 00:24:25,800 Speaker 1: Essex says the suspect has been arrested nine times in 425 00:24:25,880 --> 00:24:29,040 Speaker 1: New York and has other arrests. He has three arrested 426 00:24:29,160 --> 00:24:36,600 Speaker 1: New Jersey nine and two thousand and seven. They have 427 00:24:36,720 --> 00:24:41,720 Speaker 1: for trespass, loscity, and disorderly conduct. Chief Hassex says the 428 00:24:41,760 --> 00:24:46,000 Speaker 1: gun allegedly used by James was purchased in Ohio in eleven. 429 00:24:46,320 --> 00:24:50,199 Speaker 1: Two new omicron subvariants that appear even more transmissible than 430 00:24:50,240 --> 00:24:53,359 Speaker 1: the highly contagious b A two driving an uptick in 431 00:24:53,480 --> 00:24:56,960 Speaker 1: COVID cases in New York. According to the state's Health department. 432 00:24:57,080 --> 00:25:00,760 Speaker 1: It is the first reported instance of significant immunity spread 433 00:25:00,880 --> 00:25:04,439 Speaker 1: due to the two subvariants. In the US, Texas Governor 434 00:25:04,480 --> 00:25:07,520 Speaker 1: Greg Abbott continues to devide pressure from those opposed to 435 00:25:07,760 --> 00:25:11,959 Speaker 1: his new border policy. The extra inspections of commercial trucks 436 00:25:12,040 --> 00:25:15,640 Speaker 1: coming from Mexico is snarling traffic and leading to warnings 437 00:25:16,000 --> 00:25:20,040 Speaker 1: that US consumers could face food shortages. Still Abbit says 438 00:25:20,080 --> 00:25:23,800 Speaker 1: it's worth it. Texas is apprehending people crossing our border 439 00:25:23,920 --> 00:25:28,800 Speaker 1: illegally from countries like China, Iran, Russia, Iraq, and more 440 00:25:28,880 --> 00:25:32,040 Speaker 1: than a hundred and fifty additional countries from across the globe. 441 00:25:32,119 --> 00:25:35,119 Speaker 1: Republican Governor Rabbit said he would not repeal his new 442 00:25:35,200 --> 00:25:38,840 Speaker 1: policy at all. Bridges until there are more assurances of security. 443 00:25:39,200 --> 00:25:41,760 Speaker 1: After a two year hiatus because of COVID, the New 444 00:25:41,840 --> 00:25:44,960 Speaker 1: York Auto Show returns to Manhattan's Jabbt Center. Opens to 445 00:25:45,040 --> 00:25:47,680 Speaker 1: the public tomorrow. Global News twenty four hours a day 446 00:25:47,720 --> 00:25:49,879 Speaker 1: on air and on Bloomberg Quicktake, powered by more than 447 00:25:50,200 --> 00:25:53,000 Speaker 1: seven hundred journalists and anialists more than a hundred twenty countries. 448 00:25:53,040 --> 00:25:55,280 Speaker 1: How Michael bar this is Bloomberg, nath Michael, thank you. 449 00:26:00,160 --> 00:26:02,560 Speaker 1: Thirty five On Wall Street. John Stansher has the Bloomberg 450 00:26:02,600 --> 00:26:05,399 Speaker 1: Sports Update. Nathan Aaron Boone asked to sum up the 451 00:26:05,520 --> 00:26:09,080 Speaker 1: hitting exploits of Toronto. Slugger of Vladimir Guerrero Jr. Recalled 452 00:26:09,119 --> 00:26:11,840 Speaker 1: it otherworldly. One a night for Guerrero. Home run to 453 00:26:11,880 --> 00:26:14,040 Speaker 1: straightaway center field, the first didn't two run shot in 454 00:26:14,080 --> 00:26:16,159 Speaker 1: the third, a double in the sixth, all that off 455 00:26:16,200 --> 00:26:19,240 Speaker 1: Garrett Colan, then a four hundred and forty three foot 456 00:26:19,280 --> 00:26:21,440 Speaker 1: home run off Jonathan Wisa leading off the eighth, the 457 00:26:21,520 --> 00:26:25,199 Speaker 1: second three home run game of Guerrero's career. Toronto won 458 00:26:25,320 --> 00:26:27,920 Speaker 1: six to four Yankees and defeat hit three solo shots. 459 00:26:27,960 --> 00:26:30,600 Speaker 1: Anthony Rizzo and Aaron Judge went back to back series 460 00:26:30,680 --> 00:26:32,960 Speaker 1: of the homestand ending tonight mets her Off. They finished 461 00:26:33,000 --> 00:26:35,199 Speaker 1: a strong five and two road chip of the nine 462 00:26:35,280 --> 00:26:37,400 Speaker 1: six win at Philadelphia game where they held on after 463 00:26:37,520 --> 00:26:40,520 Speaker 1: leading eight to one. Home opener tomorrow versus Arizona, they 464 00:26:40,560 --> 00:26:44,399 Speaker 1: will unveil the Tom Siebers statue. Clayton Kershaw, missed much 465 00:26:44,440 --> 00:26:46,040 Speaker 1: of the last season to the injury, made his first 466 00:26:46,040 --> 00:26:49,280 Speaker 1: start of this season in Minnesota World seven perfect names, 467 00:26:49,320 --> 00:26:52,400 Speaker 1: thirteen strikeouts on the eighty pitches. They took him out, 468 00:26:52,800 --> 00:26:55,720 Speaker 1: six outs from the twenty five perfect game in baseball history, 469 00:26:55,720 --> 00:26:57,760 Speaker 1: and the Twins broke up the perfect game and no 470 00:26:57,920 --> 00:27:00,000 Speaker 1: hitter in the Eighthenny. Rangers went for nothing at philadel 471 00:27:00,560 --> 00:27:04,280 Speaker 1: but shut out for Alex Jorgia. Jos actually were Bloomberg Sports. 472 00:27:04,640 --> 00:27:06,960 Speaker 1: All right, John, thank you. We're at sixty six on 473 00:27:07,160 --> 00:27:09,960 Speaker 1: Wall Street now. Want to get more on the breaking 474 00:27:10,200 --> 00:27:14,040 Speaker 1: news involving Twitter, Elon Musk offering what he says is 475 00:27:14,240 --> 00:27:17,879 Speaker 1: his best and final offer to buy out Twitter in 476 00:27:17,960 --> 00:27:22,440 Speaker 1: a hostile takeover bid, offering fifty four dollars twenty cents 477 00:27:22,600 --> 00:27:26,560 Speaker 1: per share. Dan Ives is with us this morning. Analysts 478 00:27:26,560 --> 00:27:30,359 Speaker 1: at Wedbush Securities, who follows Twitter and Tesla too not 479 00:27:30,480 --> 00:27:33,920 Speaker 1: to mention very closely. Dan, good morning. Your reaction to 480 00:27:34,400 --> 00:27:38,520 Speaker 1: what we've heard so far from Elon Musk on Twitter? Yeah, look, 481 00:27:38,800 --> 00:27:42,040 Speaker 1: this is the game of thrones. Uh. And obviously, once 482 00:27:42,200 --> 00:27:45,240 Speaker 1: the situation happened with Twitter in the board, you know, 483 00:27:45,320 --> 00:27:48,480 Speaker 1: and must not joining, you know, this became a hostile 484 00:27:48,520 --> 00:27:50,639 Speaker 1: bid situation. And look, it was a view that he 485 00:27:50,680 --> 00:27:54,040 Speaker 1: would increase his steak, he was gonna step it up. 486 00:27:54,600 --> 00:27:58,919 Speaker 1: He basically went all in. Look at this premium. I mean, 487 00:27:59,000 --> 00:28:00,840 Speaker 1: it's gonna put the back against the wall. I mean, 488 00:28:00,880 --> 00:28:03,080 Speaker 1: I think at this point it looks like Musk is 489 00:28:03,480 --> 00:28:06,119 Speaker 1: likely going to own Twitter. Do you think he sticks 490 00:28:06,200 --> 00:28:10,679 Speaker 1: with that premium? Look, and the thing that the premium 491 00:28:10,840 --> 00:28:12,639 Speaker 1: is it at a point where I just do not 492 00:28:12,840 --> 00:28:15,760 Speaker 1: see any other bidders. And I think Twitter board never 493 00:28:15,840 --> 00:28:17,840 Speaker 1: in a million years thought that they'd be in a 494 00:28:17,960 --> 00:28:21,760 Speaker 1: situation one must actually buys the whole company himself in 495 00:28:21,880 --> 00:28:25,440 Speaker 1: the filing. That must basically like, okay, this is the 496 00:28:25,560 --> 00:28:30,760 Speaker 1: final offer, or I I could potentially leave the story 497 00:28:30,920 --> 00:28:35,200 Speaker 1: and sell my shares. So there's gonna be significant shareholder 498 00:28:35,320 --> 00:28:39,240 Speaker 1: pressure on Twitter from a fiduciary perspective, And you know, 499 00:28:40,240 --> 00:28:43,680 Speaker 1: it really just speaks to Musk didn't you. This is 500 00:28:43,760 --> 00:28:46,840 Speaker 1: kind of playing around in terms of Twitter as a platform, 501 00:28:46,920 --> 00:28:51,600 Speaker 1: and and this would be the the really third pillar, 502 00:28:51,920 --> 00:28:55,440 Speaker 1: you know, along with Cassel in SpaceX in terms of 503 00:28:55,600 --> 00:29:01,480 Speaker 1: his ecosystem and obviously just a vast ownership. You called 504 00:29:01,520 --> 00:29:03,760 Speaker 1: this the game of thrones, you mentioned that earlier. How 505 00:29:03,800 --> 00:29:08,120 Speaker 1: do you think Twitter's management reacts to this hostile takeover 506 00:29:08,240 --> 00:29:12,160 Speaker 1: potential bid? Go put out the standard letter that they'll 507 00:29:12,160 --> 00:29:14,120 Speaker 1: look at the bid in which they have to do, 508 00:29:14,920 --> 00:29:18,560 Speaker 1: and then likely they'll probably do an active process see 509 00:29:18,560 --> 00:29:20,960 Speaker 1: if there's any other bidders. I mean, well, they'll they'll 510 00:29:21,000 --> 00:29:24,240 Speaker 1: go around the world looking for any other bidders besides Musk. 511 00:29:24,920 --> 00:29:28,720 Speaker 1: But if you look at this premium and what he's 512 00:29:28,720 --> 00:29:31,040 Speaker 1: going to pay and obviously being richest personal world, and 513 00:29:31,080 --> 00:29:34,200 Speaker 1: he could do it himself, I mean, I think this 514 00:29:34,480 --> 00:29:36,960 Speaker 1: is just a matter of time to must go on Twitter. 515 00:29:37,760 --> 00:29:40,440 Speaker 1: In the letter, he said that the Twitter will neither 516 00:29:40,520 --> 00:29:44,480 Speaker 1: survive nor serve it's societal imperative in its current form. 517 00:29:44,640 --> 00:29:47,960 Speaker 1: He says he does not have confidence in Twitter's management 518 00:29:48,040 --> 00:29:51,000 Speaker 1: and does and thinks he can't change the public or 519 00:29:51,520 --> 00:29:53,480 Speaker 1: he doesn't think he can change the company in the 520 00:29:53,560 --> 00:29:56,320 Speaker 1: public market in our last minute here, Dan, what kind 521 00:29:56,400 --> 00:29:59,920 Speaker 1: of changes if this bid does go through and Elon 522 00:30:00,080 --> 00:30:02,520 Speaker 1: must becomes the majority stakeholder, what kind of changes do 523 00:30:02,640 --> 00:30:06,360 Speaker 1: you think he will actually make at Twitter? Well, well, 524 00:30:06,520 --> 00:30:11,160 Speaker 1: the real changes are the monozation, the advertising, the subscriber 525 00:30:11,240 --> 00:30:13,600 Speaker 1: growth of the platform. I mean that that's why we're 526 00:30:13,640 --> 00:30:17,200 Speaker 1: even in this situation as Twitter has fallen back in 527 00:30:17,400 --> 00:30:20,720 Speaker 1: terms of the social media platform relative to Instagram, TikTok 528 00:30:20,800 --> 00:30:23,360 Speaker 1: and others, Milk in terms of the freedom of speech 529 00:30:23,400 --> 00:30:26,800 Speaker 1: and other like That gets into a tight wire act 530 00:30:27,000 --> 00:30:29,680 Speaker 1: right because that you know, is going to be something 531 00:30:29,760 --> 00:30:34,640 Speaker 1: that investors want to know how he ultimately strategically is 532 00:30:34,640 --> 00:30:37,200 Speaker 1: going to change Twitter and right now need to be 533 00:30:37,680 --> 00:30:41,600 Speaker 1: There's more questions and answers, but all investors are focused 534 00:30:41,680 --> 00:30:47,040 Speaker 1: on our four numbers five for twenty first stock that 535 00:30:47,200 --> 00:30:50,000 Speaker 1: was in the threes. Yeah, and right now in the 536 00:30:50,080 --> 00:30:54,440 Speaker 1: pre market, Twitter's trading at that's a surge of twelve 537 00:30:54,640 --> 00:30:58,720 Speaker 1: point seven percent from yesterday's close. Dan, i'ves wet Bush 538 00:30:58,760 --> 00:31:01,160 Speaker 1: Securities as always great to get your thoughts as we 539 00:31:01,600 --> 00:31:04,719 Speaker 1: continue tracking the breaking news. Elon Musk with a hostile 540 00:31:04,800 --> 00:31:08,360 Speaker 1: takeover bid for Twitter. As Dan mentioned, fifty four dollars 541 00:31:08,440 --> 00:31:11,880 Speaker 1: twenty cents to Shery. Elon Musk says that's his final offer. 542 00:31:12,760 --> 00:31:16,280 Speaker 1: Stay with us. Much more to come as Bloomberg Daybreak continues. 543 00:31:16,480 --> 00:31:24,080 Speaker 1: This is Bloomberg Bloomberg eleven three O. Weather showers and 544 00:31:24,160 --> 00:31:26,320 Speaker 1: storms this afternoon with a high in your eighty degrees 545 00:31:26,440 --> 00:31:28,640 Speaker 1: Sunday Tomorrow upper sixties and will stay in the upper 546 00:31:28,680 --> 00:31:31,400 Speaker 1: sixties Saturday with a few more showers possible right now 547 00:31:31,480 --> 00:31:38,640 Speaker 1: mostly cloudy fifty nine degrees in Central Park. Markets. Headlines 548 00:31:38,720 --> 00:31:41,680 Speaker 1: and breaking news twenty four hours a day at Bloomberg 549 00:31:41,760 --> 00:31:45,120 Speaker 1: dot Com, l Bloomberg Business apt and at Bloomberg Quick TAKEE. 550 00:31:45,680 --> 00:31:55,840 Speaker 1: He's a Bloomberg Business Flash. Hi, good morning, I'm caring mostyow. 551 00:31:56,000 --> 00:31:58,280 Speaker 1: This update is brought to you by b n Y 552 00:31:58,400 --> 00:32:01,520 Speaker 1: Mellon's Perishing Learned by the world most sophisticated. Both management 553 00:32:01,560 --> 00:32:05,600 Speaker 1: and institutional firms rely on Pershing to help them improve profitability, 554 00:32:05,680 --> 00:32:10,120 Speaker 1: create efficiency, attract talent, manage risk at Pershing dot Calm. 555 00:32:10,400 --> 00:32:12,960 Speaker 1: And we are getting news as we said we've been following. 556 00:32:13,080 --> 00:32:15,560 Speaker 1: Elon Musko has made the best and final offer to 557 00:32:15,640 --> 00:32:19,160 Speaker 1: buy Twitter, saying the company has extraordinary potential and he 558 00:32:19,320 --> 00:32:23,000 Speaker 1: will unlock it. He is offering twenty cents a share 559 00:32:23,120 --> 00:32:26,240 Speaker 1: in cash, and we spoke to Dana Ives about this deal. 560 00:32:27,000 --> 00:32:29,080 Speaker 1: Put out the standard letter that they'll look at the 561 00:32:29,160 --> 00:32:32,640 Speaker 1: bid in which they have to do, and then likely 562 00:32:32,680 --> 00:32:35,640 Speaker 1: they'll probably do an active process see if there's any 563 00:32:35,720 --> 00:32:37,960 Speaker 1: other bidders. I mean, well, they'll they'll go around the 564 00:32:38,040 --> 00:32:40,800 Speaker 1: world looking for any of their bidders besides the Musk. 565 00:32:41,440 --> 00:32:45,240 Speaker 1: But if you look at this premium and what he's 566 00:32:45,280 --> 00:32:48,040 Speaker 1: going to pay, and obviously being rich personal world, he 567 00:32:48,120 --> 00:32:51,080 Speaker 1: could do it himself. I mean, I think this is 568 00:32:51,120 --> 00:32:53,520 Speaker 1: just a matter of time till till musco on Twitter 569 00:32:54,480 --> 00:32:57,480 Speaker 1: and as Dan Ives have wed Bush Securities, Twitter shares 570 00:32:57,560 --> 00:33:00,400 Speaker 1: at eleven and a half percent this morning. Also, we 571 00:33:00,560 --> 00:33:03,280 Speaker 1: have some headlines crossing the Bloomberg. Earnings from Wells Fargo 572 00:33:03,400 --> 00:33:07,040 Speaker 1: first quarter revenue missing analysts estimates. And let's go to 573 00:33:07,040 --> 00:33:09,520 Speaker 1: the first word breaking news desk Now for today's morning call. 574 00:33:09,600 --> 00:33:13,560 Speaker 1: Here's Bill Maloney, Bill, good morning, Hey, good morning, Karen. 575 00:33:13,680 --> 00:33:16,800 Speaker 1: Us futures are somewhat quiet despite that elon Musk news 576 00:33:16,880 --> 00:33:19,520 Speaker 1: doubt futures of fifty one points. Estimees are down three 577 00:33:19,800 --> 00:33:23,120 Speaker 1: when Nestack futures dropped by ten views a ten year 578 00:33:23,200 --> 00:33:25,880 Speaker 1: the two point seven percent, Gold is down eight oil 579 00:33:25,920 --> 00:33:28,920 Speaker 1: trading lower, and bitcoin is down by point four percent. 580 00:33:29,240 --> 00:33:32,000 Speaker 1: Japan rose one point two percent overnight, while Europan markets 581 00:33:32,040 --> 00:33:34,760 Speaker 1: are posting modest games this morning. And back in the 582 00:33:34,880 --> 00:33:37,640 Speaker 1: US on the economic front, Any thirty retail sales and 583 00:33:37,760 --> 00:33:41,480 Speaker 1: initial jobs claims at ten o'clock, business inventories, and Michigan 584 00:33:41,600 --> 00:33:45,120 Speaker 1: sentiment regarding earnings this morning, look for City Group, Golman 585 00:33:45,160 --> 00:33:48,160 Speaker 1: Sacks Morgan Stanley to report also in the pre market. 586 00:33:48,520 --> 00:33:51,240 Speaker 1: In other news, Google Facebook price targets were cut, with 587 00:33:51,520 --> 00:33:55,840 Speaker 1: MKM cautious on online ads wrapping things up. Delta Airlines 588 00:33:55,920 --> 00:33:59,120 Speaker 1: was raised to overweight over at Barklay's Live from the 589 00:33:59,120 --> 00:34:01,840 Speaker 1: first breaking news that scom Bill malo care. All right, Bill, 590 00:34:01,880 --> 00:34:04,160 Speaker 1: thank you to hear live breaking news overre Bloomberg type 591 00:34:04,160 --> 00:34:06,440 Speaker 1: squawk on your terminal, s qu A w u K 592 00:34:06,600 --> 00:34:08,879 Speaker 1: and that's a Bloomberg business flash. Now here's Michael Barr 593 00:34:08,960 --> 00:34:11,520 Speaker 1: with more on what's going on around the world. Michael Karen, 594 00:34:11,560 --> 00:34:14,360 Speaker 1: the suspect and Tuesday shooting at a Brooklyn subway station, 595 00:34:14,520 --> 00:34:17,120 Speaker 1: is expected to appear before a judge later this morning. 596 00:34:17,200 --> 00:34:20,200 Speaker 1: Frank James was arrest of the day after allegedly opened 597 00:34:20,239 --> 00:34:24,120 Speaker 1: fire inside a subway car injuring at least twenty three people. 598 00:34:24,400 --> 00:34:27,680 Speaker 1: In MLB, the Yankees and Orioles lost, the Mets, National's 599 00:34:27,719 --> 00:34:30,759 Speaker 1: Red Sox Athletics and Giants one in the NHL, the 600 00:34:30,840 --> 00:34:33,600 Speaker 1: Rangers one. Global news twenty four hours a day on 601 00:34:33,760 --> 00:34:36,520 Speaker 1: here and on Bloomberg Quick Take, powered by more than 602 00:34:36,600 --> 00:34:39,040 Speaker 1: twenty seven hundred journalists and analysts and more than a 603 00:34:39,120 --> 00:34:42,200 Speaker 1: hundred twenty countries. On Michael bar This is Bloomberg. Nahiight, Michael, 604 00:34:42,239 --> 00:34:44,800 Speaker 1: thank you. We are live from the Bloomberg Interactive Broker Studios, 605 00:34:44,840 --> 00:34:47,000 Speaker 1: where it's coming up to six fifty on Wall Street. 606 00:34:47,239 --> 00:34:48,880 Speaker 1: Timed owt to check what's going on in d C, 607 00:34:49,120 --> 00:34:52,200 Speaker 1: where some of the top stories include President Biden announcing 608 00:34:52,280 --> 00:34:55,840 Speaker 1: new heavy weapons heading to Ukraine as the country faces 609 00:34:55,920 --> 00:34:59,600 Speaker 1: new offensives from Russia, Treasury Secretary yell In warning China 610 00:34:59,760 --> 00:35:02,600 Speaker 1: of potential fallout over its ties to Moscow, and the 611 00:35:02,640 --> 00:35:07,320 Speaker 1: White House blasting Texas as inspections snarled traffic from Mexico. 612 00:35:07,680 --> 00:35:10,840 Speaker 1: Let's get more and now live from the International Monetary 613 00:35:10,920 --> 00:35:14,279 Speaker 1: Fund headquarters, where we find Bloomberg Washington, correspondent Amory Hord 614 00:35:14,360 --> 00:35:16,480 Speaker 1: during this morning. Amory, before we get to some of 615 00:35:16,520 --> 00:35:18,919 Speaker 1: those stories, I wonder if we've gotten any White House 616 00:35:19,000 --> 00:35:22,360 Speaker 1: reaction at this point to the arrest in the Brooklyn 617 00:35:22,440 --> 00:35:25,920 Speaker 1: subway shooting. Not quite yet, But what we did hear 618 00:35:25,960 --> 00:35:27,440 Speaker 1: from the President of the course of the week and 619 00:35:27,480 --> 00:35:31,400 Speaker 1: White off officials that they've been working in lockstep with 620 00:35:32,200 --> 00:35:35,239 Speaker 1: the local officials on the ground in New York as 621 00:35:35,440 --> 00:35:37,759 Speaker 1: of course the FBI as well of involved. But the 622 00:35:37,800 --> 00:35:39,600 Speaker 1: President is going to be traveling today, he'll be out 623 00:35:39,640 --> 00:35:42,120 Speaker 1: in about the country. He's going to North Carolina, and 624 00:35:42,200 --> 00:35:45,040 Speaker 1: I imagine we will get some reaction from the president. 625 00:35:45,120 --> 00:35:48,200 Speaker 1: This is something to press is certainly going to ask him. Yeah, certainly. Well, 626 00:35:48,239 --> 00:35:50,280 Speaker 1: we have heard from the President so far, as I mentioned, 627 00:35:50,360 --> 00:35:53,320 Speaker 1: is this announcement of what eight hundred million dollars in 628 00:35:53,440 --> 00:35:56,480 Speaker 1: new military aid to Ukraine on top of the billions 629 00:35:56,560 --> 00:35:59,160 Speaker 1: that have already been promised in the war. What kind 630 00:35:59,160 --> 00:36:02,360 Speaker 1: of firepower we talking about here, and Marie, so this 631 00:36:02,440 --> 00:36:08,080 Speaker 1: will include artillery, helicopters, ammunition, u unmanned surface vessels of 632 00:36:08,200 --> 00:36:13,600 Speaker 1: coastal defense, humby switchblade drones and also and I think 633 00:36:13,719 --> 00:36:17,000 Speaker 1: this really shows where the United States is potentially concerned 634 00:36:17,000 --> 00:36:20,480 Speaker 1: about where the conflict might lead. Next, there's sending individual 635 00:36:20,640 --> 00:36:25,480 Speaker 1: chemical biological protective suits and detective systems for these types 636 00:36:25,560 --> 00:36:30,000 Speaker 1: of chemical warfare. So it's really a huge package, and 637 00:36:30,040 --> 00:36:33,000 Speaker 1: it's going through presidential authority. So it's a quick draw 638 00:36:33,120 --> 00:36:37,480 Speaker 1: down of US stocks and supplies to Ukraine and some 639 00:36:37,640 --> 00:36:39,560 Speaker 1: of these weapons, as you can tell in the name, 640 00:36:39,760 --> 00:36:44,800 Speaker 1: they signal really a more significant military commitment, but also 641 00:36:45,440 --> 00:36:50,080 Speaker 1: um the military equipment. The beginning was very defensive. You 642 00:36:50,239 --> 00:36:52,520 Speaker 1: do see this moving to a little bit more offensive 643 00:36:53,320 --> 00:36:55,680 Speaker 1: our last minute here, and Marie, we've heard some pretty 644 00:36:55,680 --> 00:36:59,040 Speaker 1: strong words from Treasury Secretary Yelling ahead of the meeting 645 00:36:59,080 --> 00:37:03,480 Speaker 1: of global financial chiefs in Washington next week. Yes, she 646 00:37:03,760 --> 00:37:08,920 Speaker 1: blasted China for practices that quote unfairly damage the national 647 00:37:09,000 --> 00:37:12,680 Speaker 1: security interests of others, And she really talked about even 648 00:37:12,719 --> 00:37:14,520 Speaker 1: though she said she didn't want the evolution of a 649 00:37:14,600 --> 00:37:18,400 Speaker 1: quote bipolar global system, she really talked about the fact 650 00:37:18,520 --> 00:37:21,279 Speaker 1: that China needs to recognize that if it wants the 651 00:37:21,360 --> 00:37:25,600 Speaker 1: international community to a bide by their sovereignty, they also 652 00:37:25,719 --> 00:37:28,000 Speaker 1: need to do the same. So really a stark warning 653 00:37:28,160 --> 00:37:32,000 Speaker 1: coming from the Treasury Secretary specifically aimed at China. I 654 00:37:32,040 --> 00:37:34,520 Speaker 1: would say, all right, thanks as always for joining us. 655 00:37:34,520 --> 00:37:37,600 Speaker 1: Bloomberg Washington correspondent and Marie Hordern with us from the 656 00:37:37,719 --> 00:37:40,480 Speaker 1: I m F this morning. Read more at Bloomberg dot 657 00:37:40,520 --> 00:37:43,080 Speaker 1: com or on the Bloomberg terminal. Listen to Bloomberg Radio 658 00:37:43,160 --> 00:37:46,719 Speaker 1: in Washington at Bloomberg one and one oh five point 659 00:37:46,840 --> 00:37:49,920 Speaker 1: seven FM HD two. We're coming up to six fifty 660 00:37:50,000 --> 00:37:53,319 Speaker 1: three on Wall Street, and we are getting earnings this morning. 661 00:37:53,360 --> 00:37:56,880 Speaker 1: Crossing the Bloomberg Terminal from Wells Fargo as the parade 662 00:37:57,120 --> 00:38:00,800 Speaker 1: of big Wall Street bank earnings continues, skill live to 663 00:38:01,000 --> 00:38:07,600 Speaker 1: Bloomberg Intelligence Senior financial analyst Alison Williams for more details 664 00:38:07,760 --> 00:38:09,920 Speaker 1: on some of these headlines that we are seeing from 665 00:38:09,960 --> 00:38:12,840 Speaker 1: Wells Fargo this morning, not the least of which Allison 666 00:38:13,200 --> 00:38:18,359 Speaker 1: first quarter revenue coming in shy of analyst estimates. It did, 667 00:38:18,480 --> 00:38:21,719 Speaker 1: and I haven't you know, I'm still going through UM 668 00:38:22,080 --> 00:38:24,600 Speaker 1: the release, so I'm not sure exactly where the short 669 00:38:24,680 --> 00:38:28,200 Speaker 1: pall was. I would say that the couple of things 670 00:38:28,640 --> 00:38:32,600 Speaker 1: UM that I've focused on so far, actually it looks 671 00:38:32,640 --> 00:38:35,040 Speaker 1: like the net interest income is a little light, so 672 00:38:35,120 --> 00:38:38,560 Speaker 1: that that's a negative, because that's obviously one of the 673 00:38:38,680 --> 00:38:42,200 Speaker 1: things that analysts are looking for UM increasingly to help 674 00:38:42,280 --> 00:38:45,360 Speaker 1: the company. But the two things that I'm focusing on 675 00:38:45,680 --> 00:38:47,840 Speaker 1: are are where we got the short falls yesterday with 676 00:38:47,920 --> 00:38:51,040 Speaker 1: JP Morgan, and that's the provision and the capital ratio. 677 00:38:51,680 --> 00:38:54,200 Speaker 1: On the provision side for Wells, it looks like they 678 00:38:54,280 --> 00:38:58,440 Speaker 1: had a net reserve release UM, so that's we'll want 679 00:38:58,480 --> 00:39:00,319 Speaker 1: to hear more about that. But one thing I would 680 00:39:00,360 --> 00:39:05,000 Speaker 1: point out is that Wells Fargo was much UM still 681 00:39:05,160 --> 00:39:08,520 Speaker 1: much more reserved versus the other banks coming into this quarter. 682 00:39:08,960 --> 00:39:12,600 Speaker 1: So while UH, JP Morgan, Bank America City Group had 683 00:39:12,960 --> 00:39:16,520 Speaker 1: taken the reserve sort of back to UM levels at 684 00:39:16,560 --> 00:39:19,040 Speaker 1: the start of the pandemic, well still had a pretty 685 00:39:19,080 --> 00:39:21,640 Speaker 1: big buffer. A lot of that really relates to their 686 00:39:21,680 --> 00:39:25,440 Speaker 1: commercial real estate exposure UM, and that might be UM 687 00:39:25,680 --> 00:39:28,760 Speaker 1: why they are still letting a little bit of reserves 688 00:39:28,800 --> 00:39:30,880 Speaker 1: go versus kind of going the other way, which is 689 00:39:30,920 --> 00:39:34,919 Speaker 1: what we saw JP Morgan. The capital ratio though, does 690 00:39:35,160 --> 00:39:38,440 Speaker 1: look light, coming in at about ten and a half percent, 691 00:39:39,239 --> 00:39:44,520 Speaker 1: And so for the banks short term rates higher, that's 692 00:39:44,520 --> 00:39:47,600 Speaker 1: a great thing. Long term rates higher, they have to 693 00:39:47,920 --> 00:39:53,000 Speaker 1: mark down UM the value of securities UM, and that 694 00:39:53,160 --> 00:39:55,439 Speaker 1: sort of runs through their capital ratio, and we knew 695 00:39:55,480 --> 00:39:58,160 Speaker 1: that was something that banks was gonna go We're going 696 00:39:58,239 --> 00:40:00,440 Speaker 1: to take a hit on this quarter, but it does 697 00:40:00,520 --> 00:40:02,640 Speaker 1: look like that might be coming in a little bit 698 00:40:02,719 --> 00:40:06,120 Speaker 1: worse than expected. It's a it's an accounting thing. It 699 00:40:06,200 --> 00:40:10,240 Speaker 1: does reverse over time, but it can lead to lower 700 00:40:10,320 --> 00:40:13,040 Speaker 1: repurchases in the near term and that's the negative. Only 701 00:40:13,040 --> 00:40:15,640 Speaker 1: about thirty seconds left here, Alison, we've gotten some commentary 702 00:40:15,680 --> 00:40:18,200 Speaker 1: from the CEO Wells Fargo saying the war in Ukraine 703 00:40:18,280 --> 00:40:20,960 Speaker 1: adds additional risk to the downside. What could that tell 704 00:40:21,040 --> 00:40:22,960 Speaker 1: us as far as the other banks reporting later on 705 00:40:23,040 --> 00:40:27,279 Speaker 1: this morning. It's something we're watching across all the banks. Um. 706 00:40:27,560 --> 00:40:29,400 Speaker 1: That is the reason why, or one of the reasons 707 00:40:29,440 --> 00:40:32,840 Speaker 1: why we saw the bigger reserve at JP Morgan Wells Fargo, 708 00:40:33,160 --> 00:40:35,680 Speaker 1: as you know, is much more domestically focused. So what 709 00:40:35,719 --> 00:40:39,239 Speaker 1: they're referring to I think are really the knock on effects. Um. 710 00:40:39,440 --> 00:40:41,960 Speaker 1: So again, their reserve looks like they had a release. 711 00:40:42,040 --> 00:40:44,200 Speaker 1: We want to hear a little bit more about what 712 00:40:44,400 --> 00:40:47,400 Speaker 1: are the economic scenarios that they're factoring in. How is 713 00:40:47,440 --> 00:40:50,560 Speaker 1: this impacting their underwriting and their loan growth. Thanks for this, 714 00:40:50,680 --> 00:40:54,160 Speaker 1: Alison Williams of Bloomberg Intelligence. As we continue watching Wells 715 00:40:54,239 --> 00:40:58,120 Speaker 1: Fargo earnings headlines across the Bloomberg terminally in the pre market, 716 00:40:58,160 --> 00:41:00,920 Speaker 1: Wells Fargo shares now Karen are down three and a 717 00:41:00,960 --> 00:41:03,640 Speaker 1: half percent. All right, Nathan, thank you well. At six 718 00:41:03,680 --> 00:41:05,799 Speaker 1: fifty six on Wall Street, and we turned to news 719 00:41:05,840 --> 00:41:08,440 Speaker 1: and science and Technology now with a Bloomberg and j 720 00:41:08,600 --> 00:41:11,200 Speaker 1: I T. Stem report. It is Ronzi you buy New 721 00:41:11,320 --> 00:41:14,880 Speaker 1: Jersey Institute of Technology, ranked a top fifty national public 722 00:41:15,000 --> 00:41:18,080 Speaker 1: university by US News and World Report and at top 723 00:41:18,160 --> 00:41:20,840 Speaker 1: ten for best career placement among public schools by the 724 00:41:20,880 --> 00:41:23,680 Speaker 1: Princeton Review. More at and j I T. Dot E 725 00:41:23,800 --> 00:41:27,759 Speaker 1: d U and now here's US making news and science, Technology, Engineering, 726 00:41:27,840 --> 00:41:31,000 Speaker 1: and math. And China President Shi Jin Ping says his 727 00:41:31,120 --> 00:41:34,439 Speaker 1: government will stick toward zero tolerance approach to the coronavirus. 728 00:41:34,800 --> 00:41:38,440 Speaker 1: That's despite public anger and mounting economic costs. She spoke 729 00:41:38,520 --> 00:41:41,080 Speaker 1: the same day that Shanghai reported a record of almost 730 00:41:41,120 --> 00:41:44,160 Speaker 1: twenty eight thousand new cass The city's twenty five million 731 00:41:44,280 --> 00:41:47,800 Speaker 1: residents have been locked down for several weeks. The lockdowns 732 00:41:47,880 --> 00:41:50,640 Speaker 1: in China are having an impact here. Shoppers will face 733 00:41:50,760 --> 00:41:54,520 Speaker 1: longer wait times to buy Apple's MacBook pro laptops. US 734 00:41:54,600 --> 00:41:57,120 Speaker 1: consumers trying to order the latest high end models are 735 00:41:57,160 --> 00:42:00,760 Speaker 1: now seeing delivery estimates pushed into June. Number of companies 736 00:42:00,800 --> 00:42:03,960 Speaker 1: that assemble mac books and China have halted production because 737 00:42:04,000 --> 00:42:07,560 Speaker 1: of the lockdowns. And Toyota is recalling about four d 738 00:42:07,719 --> 00:42:10,440 Speaker 1: sixty thousand vehicles in the US to fix a software 739 00:42:10,560 --> 00:42:14,800 Speaker 1: problem that can inadvertently disable the electronic stability control system. 740 00:42:15,120 --> 00:42:18,239 Speaker 1: The automakers says that when the vehicles are restarted, the 741 00:42:18,360 --> 00:42:21,640 Speaker 1: software and rare cases may not automatically switch the system 742 00:42:21,680 --> 00:42:24,680 Speaker 1: into the on mode and that can disable the system. 743 00:42:25,120 --> 00:42:28,120 Speaker 1: And that's a Bloomberg and j I T Stem report. 744 00:42:28,480 --> 00:42:30,840 Speaker 1: We continue to watch shares of Twitter this morning up 745 00:42:30,880 --> 00:42:34,040 Speaker 1: more than eleven percent after Elon Musk made a best 746 00:42:34,080 --> 00:42:37,880 Speaker 1: and final offer to buy the company, and straight ahead 747 00:42:38,000 --> 00:42:42,360 Speaker 1: it is a Bloomberg surveillance. Tom Keene and Lisa Abramowitz 748 00:42:42,400 --> 00:42:45,040 Speaker 1: at the I m F this morning for Nathan Hankar 749 00:42:45,160 --> 00:42:47,759 Speaker 1: on Karen Moscow, and this is Bloomberg