Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg
Speaker 1: day Break for Thursday, April fourteen. Coming up this hour,
Speaker 1: he accused Brooklyn subway shooter faces terrorism charges in federal
Speaker 1: court today. President Biden authorizes eight hundred million dollars in
Speaker 1: new military aid for Ukraine and bank earnings roll in Goldman,
Speaker 1: Sachs City Group and Morgan Stanley all report this morning.
Speaker 1: New York surgeon COVID cases are driven by a new subvariant.
Speaker 1: Plus Texas Governor Greg Abbott the highest pressure from those
Speaker 1: opposed to his new border policy. By Michael Blarm More Ahead,
Speaker 1: I'm time Stashoward Sports Ladimer Guerrero's three home runs lift
Speaker 1: in Toronto over the Yankees the medicine Rangers both one
Speaker 1: in Philadelphia. That's all straight ahead on Bloomberg day Break
Speaker 1: on Bloomberg eleven, Free on New York, Bloomberg one, Washington,
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, Francisco,
Speaker 1: Sirius x M one nineteen and around the world on
Speaker 1: Bloomberg Radio dot Com and via The Bloomberg Business At
Speaker 1: Good Morning. I'm Nathan Hagar, and I'm Karen, Moscow and
Speaker 1: US DOT Index futures are a little change this morning
Speaker 1: heading into the holiday weekend. We're coming up to six
Speaker 1: o one on Wall Street. We check the markets every
Speaker 1: fifteen minutes throughout the trading day. On Bloomberg. Right now,
Speaker 1: SNP futures are again little change. Down futures are up
Speaker 1: thirty one now and as Day future is up twenty one.
Speaker 1: The decks in Germany is little changed, and your treasury
Speaker 1: little changed as well. Yea two point six nine percent
Speaker 1: and they yield on the two year is at two
Speaker 1: point three four percent. Nathan, Karen, We'll have one markets
Speaker 1: in just a minute, but first, the suspected shooter in
Speaker 1: the Brooklyn subway is set to appear in court today.
Speaker 1: Bloomberg's Michael Barr joins US Live with the very latest.
Speaker 1: Good morning, Michael, Good morning, Nathan. The man accused of
Speaker 1: being the gunman who shot ten people and wounded others
Speaker 1: in a Brooklyn subway station was arrested in Manhattan yesterday.
Speaker 1: Mayor Eric Adams, we got police responded to except that
Speaker 1: the sixty two year old was ad a McDonald's in
Speaker 1: Manhattan's East Village. James allegedly fired a nine millimeter glock
Speaker 1: handgun at least thirty three times in the Manhattan bound
Speaker 1: in train. James, with addresses in Philadelphia and the Milwaukee area,
Speaker 1: will make an initial court appearance on terrorism charges in
Speaker 1: federal court in Brooklyn. U S Attorney Brian Peace, and
Speaker 1: if convicted, he will face a sentence of up to
Speaker 1: life imprisonment. U S Attorney Peace says the government will
Speaker 1: prove that James traveled across state lines in order to
Speaker 1: commit the offense in New York. Michael Barb Bloomberg Daybreak,
Speaker 1: Karen all Right, Michael Barr, thank you while the subway shooting.
Speaker 1: His prompt questions and how Frank James might be prosecuted
Speaker 1: in this case. David Schwartz is a former Brooklyn prosecutor
Speaker 1: and partner at Gertzman Schwartz. Bottom charges will be the
Speaker 1: federal terrorism charge, will be attempted murder charges. On the
Speaker 1: state level. There will be state charges. I believe federal
Speaker 1: arges the federal case will come first. And former Brooklyn
Speaker 1: prosecutor David Schwartz spoke with our Washington corresponded Joe Matthew
Speaker 1: on Bloomberg Sound on Catch the Program weekdays at five
Speaker 1: pm Eastern on Bloomberg Radio. Right, let's get to the
Speaker 1: latest on the war in Ukraine. Karen Russia continues to
Speaker 1: reposition for new attacks in the east and south. The
Speaker 1: mayor of Maripol says more than twenty thousand people have
Speaker 1: been killed in the weeks long siege of his city,
Speaker 1: and now President Biden has announced eight hundred million dollars
Speaker 1: in new military aid for Ukraine. Bloomberg's Sad Baxter has
Speaker 1: the story. The package includes artillery, ammunition, and White House
Speaker 1: spokeswoman Jensaki says helicopters. It was unclear for a while
Speaker 1: um from their side whether they wanted additional helicopters. We
Speaker 1: have provided them helicopters in the past, uh, And today
Speaker 1: they make clear they wanted them in so we said, great,
Speaker 1: They're helicopters in the package. So the new shipment marks
Speaker 1: a shift toward more offensive weapons. Prior shipments had been
Speaker 1: defensive systems. In San Francisco, I'm at Baxter Bloomberg Day Break,
Speaker 1: All right, and thank you all. Turning to the markets now,
Speaker 1: bank earnings continue with Oleman Snacks, Morgan, Stanley, City Group,
Speaker 1: and Wells Fargo all reporting this morning. We get a
Speaker 1: preview from Bloomberg Shinali Balsac. After JP Morgan reported earnings,
Speaker 1: it turns out that trading did not fall as much
Speaker 1: as expected. That should bode well for Goldman Sachs and
Speaker 1: Morgan Stanley, which have a greater percentage of their earnings
Speaker 1: tied to trading businesses. The consumer is also in pretty
Speaker 1: strong shape, but there are some businesses that are not
Speaker 1: growing very quickly as rates start to rise. That will
Speaker 1: be of importance for Wells Fargo as it reports earnings today,
Speaker 1: and for City Group there will be questions around the
Speaker 1: Russia exposure and whether the bank has to take losses
Speaker 1: tied to the country. I'm Shnoli Bassak for Bloomberg day Break.
Speaker 1: All right, Shinali, thank you when we get another snapshot
Speaker 1: this morning on the health of the U s economy
Speaker 1: with the March reading on retail sales here the preview
Speaker 1: is Bloomberg's Michael McKee. March was a month of skyrocket
Speaker 1: and gasoline prices, so dollars collected at service stations should
Speaker 1: lead the forecast gains, but that may mean less spent
Speaker 1: on other categories. A Chicago Fed index that tracks retail
Speaker 1: sales suggests factor of gasoline, autos and March retail sales
Speaker 1: may have declined significantly. To get a clearer picture of
Speaker 1: American spending, will also have to factor out inflation, which
Speaker 1: is at its highest since nine Given the Fed is
Speaker 1: expected to raise interest rates aggressively to bring inflation down,
Speaker 1: some retail strength would reassure policymakers the economy isn't about
Speaker 1: to go into recession. Michael McKee, Bloomberg Daybreak. Sorry Michael,
Speaker 1: thank you well. Please join Mike later this morning on
Speaker 1: Bloomberg Surveillance when he speaks live with New York Fan
Speaker 1: President John Williams. It's coming up at forty five am
Speaker 1: all street time on both Bloomberg Radio and television. Of course,
Speaker 1: taming inflation is front and center for the Fed. Karen
Speaker 1: and Treasury Secretary Janet Yellen says the Central Bank does
Speaker 1: have a tough balancing act ahead, but it can be done.
Speaker 1: They will um try to maintain strong labor markets while
Speaker 1: bringing inflation down. But and it has been done in
Speaker 1: the past. It's not an impossible combination, but um it
Speaker 1: will require skill and also good luck. Janet Yellen says
Speaker 1: she'll convene a meeting of top international financial officials next
Speaker 1: week to address a global food security crisis stemming from
Speaker 1: record prices overseas. Nathan, we get a policy decision from
Speaker 1: the European Central Bank this morning. Economists say the ECB
Speaker 1: will almost certainly stand pat They're likely prioritize to fight
Speaker 1: against inflation of our risk to the economy caused by
Speaker 1: the war in Ukraine. Meantime, karent inflation may soon have
Speaker 1: you paying higher prices at Amazon. Joining us here live
Speaker 1: to explain that. As Bloomberg's rnitda Young, Good morning, Ranita,
Speaker 1: Good morning, Nathan. Amazon merchants were already grappling with cost
Speaker 1: related fee hikes that took effect in January and average
Speaker 1: five percent, And now Bloomberg News has learned Amazon is
Speaker 1: adding a five percent fuel and inflation fee on merchants
Speaker 1: that use its shipping services. That's putting pressure on sellers
Speaker 1: to raise prices. It's scheduled to kick in on April.
Speaker 1: Amazon joins a range of companies who've had to take
Speaker 1: action to offset rising costs. Airlines are raising ticket prices,
Speaker 1: Uber and Lift added fuel surcharges and s FedEx and
Speaker 1: Ups have also raised their prices. Live in New York.
Speaker 1: I'm gonna need a young Bloomberg day all right, we
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Speaker 1: Daybreak and it sounds like so seven on Wall Street
Speaker 1: got some showers in Central Park fifty eight degrees. Let's
Speaker 1: get more on what we know about the Brooklyn subway
Speaker 1: suspect and more on what's happening in New York and
Speaker 1: around the world. Michael bar back with us this morning. Michael,
Speaker 1: thank you very much. Nathan. We're learning more about the
Speaker 1: suspected Brooklyn subway shooter who was arrested yesterday in Manhattan
Speaker 1: and East Village hardware store manager says he helped Megan happen.
Speaker 1: Francisco Pebli says he was working at a store when
Speaker 1: he looked up and saw the suspect. Frank James walked
Speaker 1: right by. He wasn't like a normal person if he
Speaker 1: didn't resist anything. He just like staying calm and then
Speaker 1: Reblood notified police who were down the block, and minutes
Speaker 1: later the suspect was in custody. NYPD Chief of Detectives
Speaker 1: James Essex says James has a record. He's arrest history
Speaker 1: in New York is nine prior arrests dating from nineteen
Speaker 1: nine two. Chief Essex also says James was arrested several
Speaker 1: times in New Jersey. The New York State Health Department
Speaker 1: says two new O macron sub variants that appear even
Speaker 1: more transmissible than the highly contagious b A two are
Speaker 1: driving an uptick in COVID cases in the state. The
Speaker 1: department estimates that they have twenty three percent to seven
Speaker 1: growth advantage over the b A two variant that was
Speaker 1: itself more infectious than the original omicron variant. And Ohio
Speaker 1: man who acknowledges he joined the mob at the US
Speaker 1: Capitol last year and ignored a variety of warning signs,
Speaker 1: says he was only following orders from the President Donald Trump.
Speaker 1: The man, thirty eight year old Dustin Byron Thompson, and
Speaker 1: testified during its trial in federal court in Washington. Thompson's
Speaker 1: defense team is the first to argue that Trump and
Speaker 1: others were responsible for the mob's actions. Traffic between Mexico
Speaker 1: and the US has been snarled since Texas Governor Greg
Speaker 1: Abbott ordered commercial trucks undergo extra inspections. Is part of
Speaker 1: the Republican governor's fight with the Biden administration over immigration.
Speaker 1: Texas law enforcement is apprehending the illegal immigrants that got
Speaker 1: away from the border patrol, including previously convicted murderers, previously
Speaker 1: convicted child rapists, kidnappers, drug traffickers, MS thirteen gang members,
Speaker 1: and cartel gang members. Governor Rabbit says the standoff has
Speaker 1: stoked warnings by trade groups and experts that US grocery
Speaker 1: shoppers could soon notice shortages on shelves and higher prices.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than seven hundred journalists
Speaker 1: and analysts more than a hundred, twenty countries. Michael Barr,
Speaker 1: this is Bloomberg Games, Okay, Michael, thank you. Count up
Speaker 1: to six ten on Wall Street Time for the Bloomberg
Speaker 1: Sports Update with John sash Ower A Nathan Yankees beaten
Speaker 1: by the Blue Jays, more specifically beaten by one Blue
Speaker 1: Jay Pats leaving off this seat. Dathan Elizaka's first pitches swam?
Speaker 1: How did deep Bluff field? That phone is gone? Vladimir
Speaker 1: Guerrero Jr. With the three Holber game night. He does
Speaker 1: it in the Bronx Jays Radio the call. He also
Speaker 1: had a three home run game last season. Two of
Speaker 1: the home runs, plus the double came against Garrett Cole.
Speaker 1: Most of it all came after Guerrero cut his hand
Speaker 1: on a play in the field. Toronto one, six to four.
Speaker 1: It's early in the season, but a couple of Yankee
Speaker 1: concerns too much reliance on the home run. They hit
Speaker 1: three Anthony Rizzo Aaron Judge in gladbor Tores, but they
Speaker 1: score only one other run. Also, Kyle Agasha Yoka promoted
Speaker 1: the starting catcher Isaiah Kiner Felfa brought it into the
Speaker 1: new shortstop. Together, they are a combined two of thirty
Speaker 1: five series ends. Tonight, Mets are off. They have their
Speaker 1: whole opener tomorrow to include the unveiling of the Tom
Speaker 1: Siever's statue. It will all happen on the seventy fifth
Speaker 1: anniversary of Jackie Robinson's debut in Brooklyn. The Mets at
Speaker 1: up five and two road trip they wanted Philadelphia nine
Speaker 1: to six. Peter Alonso followed up his Grand Slam the
Speaker 1: other day with a three run homer. Five RBIs Max
Speaker 1: sernser Is now two and oh. Also in Philly, Rangers
Speaker 1: won four and up in twenty eight says for Alex
Speaker 1: Georgie Copo CaCO scored the first two goals. NBA play
Speaker 1: in two more wins by the home teams Atlanta by
Speaker 1: twenty nine, ending Charlotte's season. New Orleans took out San Antonio's.
Speaker 1: In tomorrow, HAPs visit Cleveland, Pelicans at the Clippers and
Speaker 1: the winners advanced John Stash were Bloomberg Scorts, Nathan Okay, John,
Speaker 1: thank you right now. S and P futures are up
Speaker 1: one point down, futures up fifty three, Nestex futures are
Speaker 1: higher by eighteen points. Looking at the tenure, it is
Speaker 1: down one thirty second with the yield two point seven
Speaker 1: zero percent. The yield on the two year right now
Speaker 1: two point three four percent, and nime X screwed is
Speaker 1: down one in a quarter percent, down to dollar thirty
Speaker 1: to a hundred two dollars a barrel. This is Bloomberg, Bloomberg,
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Speaker 1: business flash. Hey, good morning. I'm Karen Moscow, and we
Speaker 1: do have headlines crossing the Bloomberg now involving Twitter Elon
Speaker 1: Musk offering to buy Twitter for fifty four dollars twenty
Speaker 1: cents a share in cash. This is according to a
Speaker 1: regulatory filing in a letter to the Chairman of the
Speaker 1: board must saying quote Twitter has extraordinary potential. I will
Speaker 1: unlock it. Twitter shares are up thirteen percent right now
Speaker 1: in early trading, and we're going to get full details
Speaker 1: and perspective on this with Gene Monster of Loop Ventures
Speaker 1: in just moments from now. We're also watching United health
Speaker 1: Group and raised his forecast for the year as double
Speaker 1: digit revenue growth and lower operating costs help the healthcare
Speaker 1: giant beat analysts estimates SMP future is a little change
Speaker 1: this morning. Down Future is up sixty one points and
Speaker 1: nasdack futures that will change. Tenure Treasury down to thirty seconds,
Speaker 1: l two point seven zero percent, yield on the two
Speaker 1: year two point three four percent, and NIMEX screwed oil
Speaker 1: is down one point four percent. Again. Twitter shares up
Speaker 1: more than well twelve and a half percent in early
Speaker 1: trading right now, and as a Bloomberg Business flash, now,
Speaker 1: here's Michael Barr with more on what's going on around
Speaker 1: the world. Michael here in the suspect that rested in
Speaker 1: the Brooklyn subway shooting the left ten people wounded by gunfire. Also,
Speaker 1: he left behind a trope of angry YouTube videos. Please
Speaker 1: we're studying them for a possible motive. Frank James vented
Speaker 1: about racism in America, his struggles with mental illness, New
Speaker 1: York City's New Air and nine eleven, among other things.
Speaker 1: In MLB, the Yankees and Orioles, lost, Mets, Nationals, Red
Speaker 1: Sox A's Giants all one in the NHL, the Rangers.
Speaker 1: One Global News twenty four hours a day on air
Speaker 1: and on Bloomberg Quicktake, powered by more than twenty seven
Speaker 1: hundred journalists, and analysts in more than a hundred twenty
Speaker 1: countries on Michael bar This is Bloomberg Nian Michael, thank you.
Speaker 1: It is six nineteen on Wall Street Live from the
Speaker 1: Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak with breaking
Speaker 1: news in the m and A space. Elon Musk is
Speaker 1: offering to buy Twitter for fifty four dollars in twenty
Speaker 1: cents to share. He didn't announce it on the social
Speaker 1: media platform. He announced it through an SEC filing. Let's
Speaker 1: get some initial reaction now. Gene Munster joins us live,
Speaker 1: the co founder of Loop Ventures. Just a couple of
Speaker 1: headlines crossing on this announcement. Gene Elon Musk, the Tesla
Speaker 1: and space X CEO, says he does not have confidence
Speaker 1: in Twitter's management. He says Twitter has extraordinary potential. I
Speaker 1: will unlock it. Your action. Welcome to the world of
Speaker 1: Elon Musk. Once again here unpredictable by design, and I
Speaker 1: think his approach is to uh think big. He's doing
Speaker 1: that here. My reaction is that the premium that he's
Speaker 1: offering is somewhat modest premium. This is a cential where
Speaker 1: the stock spiked too recently and so um, I think
Speaker 1: the uh, this is not a slam dunk that it
Speaker 1: gets done at this price, and probably safe to say
Speaker 1: that this is not his final price either. I suspect
Speaker 1: he's not going to lead with his final price again,
Speaker 1: just a modest premium to where the stock was yesterday
Speaker 1: versus and essentially where it was at the peak when
Speaker 1: it's spiked this week. So look for this to uh,
Speaker 1: you know, kind of take on some more contours where
Speaker 1: he may have to raise his bid. And I think
Speaker 1: the other piece too is that is surprising to me
Speaker 1: that the piece that he's putting a pusher, bigger push
Speaker 1: is not surprising. The one thing that is surprising is
Speaker 1: that this is a time think, you know, he's really
Speaker 1: wants to take all of this on here. And I
Speaker 1: had previously predicted that he wanted to have a bigger role,
Speaker 1: he wanted to have an influence even after he stepped
Speaker 1: off of the board. Um. I thought that he just
Speaker 1: still wanted to have an influence. But this is a
Speaker 1: much different contour to it, and that part is surprised
Speaker 1: because there's a capacity question there. Of course, once you
Speaker 1: layer in Tesla and SpaceX. Now we're watching the reaction
Speaker 1: in the Twitter shares in the pre market, they had
Speaker 1: spiked as much as on the news right now in
Speaker 1: early trading their up twelve. Of course, Musk on his
Speaker 1: Twitter feed has thrown a lot of spaghetti on the
Speaker 1: wall in terms of changes that may be real or
Speaker 1: imagine that he might like to see, from adding an
Speaker 1: edit button for tweets to uh. At one point, he
Speaker 1: floated the idea of turning Twitter's existing headquarters in Silicon
Speaker 1: Valley into a homeless shelter. What kind of changes do
Speaker 1: you think concretely and elon Musk, majority stakeholder Twitter, would
Speaker 1: look like. I think there are two essential pieces to it.
Speaker 1: First is that I think he's gonna make it so
Speaker 1: it's harder for Twitter to manage the content on on
Speaker 1: on the platform. This is something that is very important, Jim.
Speaker 1: This is why we are here in the first place.
Speaker 1: It is his view that Twitter has been punitive to
Speaker 1: some people and in terms of kind of monitoring what
Speaker 1: they're saying. And so I think that that's the first
Speaker 1: and most obvious change that that would happen. That would
Speaker 1: definitely happen. I think there's there's a second question about
Speaker 1: monetization and the growth rate and Twitter has been relatively
Speaker 1: modest over the past few years. It just it really
Speaker 1: hasn't grown to this at the same pace of other
Speaker 1: social platforms obviously, like TikTok or Snapchat. And I think
Speaker 1: that there's a question we talked about unlocking the value, uh,
Speaker 1: that there could be a monetization question. There isn't an
Speaker 1: obvious one where this has historically not been done in
Speaker 1: social but just given Eon Musk's first principles approach to
Speaker 1: everything he does, and the first principles means just because
Speaker 1: it hasn't been done before doesn't mean you shouldn't try
Speaker 1: something in the future. And there's the first principles approach
Speaker 1: that he could take with just essentially just charging people
Speaker 1: to be on Twitter. You know, would you pay a
Speaker 1: month to be a dollar per month for example, to
Speaker 1: be on Twitter? But I guesses a lot of people
Speaker 1: would and really kind of stress test to monetization side
Speaker 1: of it, And so that's probably where the biggest value
Speaker 1: could be created. Uh, if it is in fact the
Speaker 1: town square that he describes it as and he's able
Speaker 1: to actually monetize users for it, I could see it
Speaker 1: happened about thirty seconds left here Gene Obviously Elon must
Speaker 1: can afford to buy out Twitter. Do you think you
Speaker 1: can see some competition and from other potential hostile takeover candidates. Um,
Speaker 1: I think less likely that that happens because it's been
Speaker 1: depressed before, and I don't think there was people circling.
Speaker 1: I think you're going to see other emin a activity
Speaker 1: more broadly with this pullback, with a lot of these
Speaker 1: you know, a lot of tech stocks are down. Um,
Speaker 1: Twitter's down a lot, But I don't think it solves
Speaker 1: in that same category of where it's easy pickings for
Speaker 1: a for a bitting more. Thanks for this, Jane. Great
Speaker 1: to have you on with us as we just got
Speaker 1: this news breaking minutes ago, Elon Musk making what he
Speaker 1: calls his best and final offer to buy Twitter, saying
Speaker 1: it has extraordinary potential and he will unlock it, offering
Speaker 1: fifty four dollars in twenty cents a share for the
Speaker 1: social network Twitter in the pre market up nearly eleven
Speaker 1: and a half percent on the news. Stay with us
Speaker 1: for more. Are listening to Bloomberg Daybreak Bloomberg eleven three
Speaker 1: oh weather showers and storms this afternoon with a high
Speaker 1: near eighty degrees. Sunshine returns tomorrow upper sixties will stand.
Speaker 1: They up for sixties Saturday with a few more showers possible.
Speaker 1: Right now fifty nine in Central Park, broadcasting live from
Speaker 1: the Bloomberg Interactive Brokers Studio in New York, Bloomberg Elving
Speaker 1: Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one,
Speaker 1: O six one to San Francisco Bloomberg and M sixty
Speaker 1: to the Country Sirius XM CHO one nineteen and around
Speaker 1: the globe the Bloomberg Business at and Bloomberg Radio dot com.
Speaker 1: This is Bloomberg Daybreak six thirty on Wall Street. Good morning,
Speaker 1: I'm Nathan Hagar and I'm Karen Moscow, and we're just
Speaker 1: about three hours away from the open of US trading.
Speaker 1: It's time for the five things that you need to notice.
Speaker 1: Start your day. Bralty you by ib KR Investment Advisers
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Speaker 1: I a up first breaking and news involving Twitter and
Speaker 1: Elon Musk. The Tesla CEO is launching a hostile takeover
Speaker 1: of the social media company, and Bloomberg's Renada Young joins
Speaker 1: US Live with its developing story. Good Morning Renda, Good
Speaker 1: morning Karen. The world's richest man is offering about forty
Speaker 1: three billion dollars for Twitter. Elon Musk calls it his
Speaker 1: best and final offer, and it represents an eighteen percent
Speaker 1: premium to Twitter's closing price yesterday, and it's thirty seven
Speaker 1: percent above the price before Musk disclosed a stake in
Speaker 1: the company. The Tesla CEO announced the offer of fifty
Speaker 1: four dollars and twenty cents of share in a filing
Speaker 1: with the SEC. He says Twitter has extraordinary potential and
Speaker 1: he will unlock it. Live in New York, I'm gonna
Speaker 1: need a Young Bloomberg day break a, Renita, thanks for
Speaker 1: watching shares of Twitter and early trading. Right now they
Speaker 1: are up about eleven percent. Let's you have to developing
Speaker 1: story out of New York City now, where police arrested
Speaker 1: suspected subway shooter Frank James. Mayor Eric Adams released a
Speaker 1: statement following the arrest. Myself got Mayor Adams isolating after
Speaker 1: a positive COVID test. City Police Commissioner Keyshawn Sewell also
Speaker 1: addressed the arrest. We used every resource at our disposal
Speaker 1: to gather and process significant evidence that directly links Mr
Speaker 1: James to the shooting. We were able to shrink his
Speaker 1: world quickly. There was nowhere left for him to write.
Speaker 1: Police Commissioners. School says the NYPD worked with many law
Speaker 1: enforcement partners to make the arrest. Meantime, and Washington naked Nathan,
Speaker 1: the focus remains on Ukraine. US President Biden announced eight
Speaker 1: hundred million dollars in additional US military aid for Ukraine,
Speaker 1: while Europe continues to provide cash for weapons. It comes
Speaker 1: as Russia warrants of deploying nuclear weapons in and around
Speaker 1: the Baltic siege. Now's if Finland and sweet enjoyed NATO
Speaker 1: the country say they're stepping up considering of doing so
Speaker 1: as finding continues Russia's repositioning forces for renewed attacks in
Speaker 1: the eastern and southern parts of Ukraine. On Wall Street,
Speaker 1: Cairn for Big Banks release earnings today, Morgan Stanley, Goldman,
Speaker 1: Sachs City Group, and Wells Fargo all report following yesterday's
Speaker 1: mixed report from JP Morgan and Futures this morning, they're
Speaker 1: little changed and the tenure Treasury is up one thirty
Speaker 1: second deal two point six nine percent. That's the five
Speaker 1: things you need to know to start your day, Brought
Speaker 1: to you by Interactive Brokers, Straight Ahead, your latest local headlines,
Speaker 1: plus a check of sports. And this is Bloomberg. Karen,
Speaker 1: Thanks sixty three on Wall Street, fifty nine degrees in
Speaker 1: Central Park. Let's get more details now on the Brooklyn
Speaker 1: subway suspect Michael Barr is back with us. Good morning Michael,
Speaker 1: Good morning Nathan. The suspect arrested in the Brooklyn subway
Speaker 1: shooting that left ten people wounded by gunfire also left
Speaker 1: behind a trove of angry YouTube videos. Police were studying
Speaker 1: them for possible motive. Frank j seemed to end about
Speaker 1: nearly everything in his videos, Racism in America, his struggles
Speaker 1: with mental illness, New York City's new mayor nine eleven,
Speaker 1: Russia's invasion of Ukraine, and black women. In one, he said,
Speaker 1: this nation was born in violence. It's kept alive by
Speaker 1: violence or the threat thereof, and it's going to die
Speaker 1: a violent death in my bed. Chief of Detectives James
Speaker 1: Essex says the suspect has been arrested nine times in
Speaker 1: New York and has other arrests. He has three arrested
Speaker 1: New Jersey nine and two thousand and seven. They have
Speaker 1: for trespass, loscity, and disorderly conduct. Chief Hassex says the
Speaker 1: gun allegedly used by James was purchased in Ohio in eleven.
Speaker 1: Two new omicron subvariants that appear even more transmissible than
Speaker 1: the highly contagious b A two driving an uptick in
Speaker 1: COVID cases in New York. According to the state's Health department.
Speaker 1: It is the first reported instance of significant immunity spread
Speaker 1: due to the two subvariants. In the US, Texas Governor
Speaker 1: Greg Abbott continues to devide pressure from those opposed to
Speaker 1: his new border policy. The extra inspections of commercial trucks
Speaker 1: coming from Mexico is snarling traffic and leading to warnings
Speaker 1: that US consumers could face food shortages. Still Abbit says
Speaker 1: it's worth it. Texas is apprehending people crossing our border
Speaker 1: illegally from countries like China, Iran, Russia, Iraq, and more
Speaker 1: than a hundred and fifty additional countries from across the globe.
Speaker 1: Republican Governor Rabbit said he would not repeal his new
Speaker 1: policy at all. Bridges until there are more assurances of security.
Speaker 1: After a two year hiatus because of COVID, the New
Speaker 1: York Auto Show returns to Manhattan's Jabbt Center. Opens to
Speaker 1: the public tomorrow. Global News twenty four hours a day
Speaker 1: on air and on Bloomberg Quicktake, powered by more than
Speaker 1: seven hundred journalists and anialists more than a hundred twenty countries.
Speaker 1: How Michael bar this is Bloomberg, nath Michael, thank you.
Speaker 1: Thirty five On Wall Street. John Stansher has the Bloomberg
Speaker 1: Sports Update. Nathan Aaron Boone asked to sum up the
Speaker 1: hitting exploits of Toronto. Slugger of Vladimir Guerrero Jr. Recalled
Speaker 1: it otherworldly. One a night for Guerrero. Home run to
Speaker 1: straightaway center field, the first didn't two run shot in
Speaker 1: the third, a double in the sixth, all that off
Speaker 1: Garrett Colan, then a four hundred and forty three foot
Speaker 1: home run off Jonathan Wisa leading off the eighth, the
Speaker 1: second three home run game of Guerrero's career. Toronto won
Speaker 1: six to four Yankees and defeat hit three solo shots.
Speaker 1: Anthony Rizzo and Aaron Judge went back to back series
Speaker 1: of the homestand ending tonight mets her Off. They finished
Speaker 1: a strong five and two road chip of the nine
Speaker 1: six win at Philadelphia game where they held on after
Speaker 1: leading eight to one. Home opener tomorrow versus Arizona, they
Speaker 1: will unveil the Tom Siebers statue. Clayton Kershaw, missed much
Speaker 1: of the last season to the injury, made his first
Speaker 1: start of this season in Minnesota World seven perfect names,
Speaker 1: thirteen strikeouts on the eighty pitches. They took him out,
Speaker 1: six outs from the twenty five perfect game in baseball history,
Speaker 1: and the Twins broke up the perfect game and no
Speaker 1: hitter in the Eighthenny. Rangers went for nothing at philadel
Speaker 1: but shut out for Alex Jorgia. Jos actually were Bloomberg Sports.
Speaker 1: All right, John, thank you. We're at sixty six on
Speaker 1: Wall Street now. Want to get more on the breaking
Speaker 1: news involving Twitter, Elon Musk offering what he says is
Speaker 1: his best and final offer to buy out Twitter in
Speaker 1: a hostile takeover bid, offering fifty four dollars twenty cents
Speaker 1: per share. Dan Ives is with us this morning. Analysts
Speaker 1: at Wedbush Securities, who follows Twitter and Tesla too not
Speaker 1: to mention very closely. Dan, good morning. Your reaction to
Speaker 1: what we've heard so far from Elon Musk on Twitter? Yeah, look,
Speaker 1: this is the game of thrones. Uh. And obviously, once
Speaker 1: the situation happened with Twitter in the board, you know,
Speaker 1: and must not joining, you know, this became a hostile
Speaker 1: bid situation. And look, it was a view that he
Speaker 1: would increase his steak, he was gonna step it up.
Speaker 1: He basically went all in. Look at this premium. I mean,
Speaker 1: it's gonna put the back against the wall. I mean,
Speaker 1: I think at this point it looks like Musk is
Speaker 1: likely going to own Twitter. Do you think he sticks
Speaker 1: with that premium? Look, and the thing that the premium
Speaker 1: is it at a point where I just do not
Speaker 1: see any other bidders. And I think Twitter board never
Speaker 1: in a million years thought that they'd be in a
Speaker 1: situation one must actually buys the whole company himself in
Speaker 1: the filing. That must basically like, okay, this is the
Speaker 1: final offer, or I I could potentially leave the story
Speaker 1: and sell my shares. So there's gonna be significant shareholder
Speaker 1: pressure on Twitter from a fiduciary perspective, And you know,
Speaker 1: it really just speaks to Musk didn't you. This is
Speaker 1: kind of playing around in terms of Twitter as a platform,
Speaker 1: and and this would be the the really third pillar,
Speaker 1: you know, along with Cassel in SpaceX in terms of
Speaker 1: his ecosystem and obviously just a vast ownership. You called
Speaker 1: this the game of thrones, you mentioned that earlier. How
Speaker 1: do you think Twitter's management reacts to this hostile takeover
Speaker 1: potential bid? Go put out the standard letter that they'll
Speaker 1: look at the bid in which they have to do,
Speaker 1: and then likely they'll probably do an active process see
Speaker 1: if there's any other bidders. I mean, well, they'll they'll
Speaker 1: go around the world looking for any other bidders besides Musk.
Speaker 1: But if you look at this premium and what he's
Speaker 1: going to pay and obviously being richest personal world, and
Speaker 1: he could do it himself, I mean, I think this
Speaker 1: is just a matter of time to must go on Twitter.
Speaker 1: In the letter, he said that the Twitter will neither
Speaker 1: survive nor serve it's societal imperative in its current form.
Speaker 1: He says he does not have confidence in Twitter's management
Speaker 1: and does and thinks he can't change the public or
Speaker 1: he doesn't think he can change the company in the
Speaker 1: public market in our last minute here, Dan, what kind
Speaker 1: of changes if this bid does go through and Elon
Speaker 1: must becomes the majority stakeholder, what kind of changes do
Speaker 1: you think he will actually make at Twitter? Well, well,
Speaker 1: the real changes are the monozation, the advertising, the subscriber
Speaker 1: growth of the platform. I mean that that's why we're
Speaker 1: even in this situation as Twitter has fallen back in
Speaker 1: terms of the social media platform relative to Instagram, TikTok
Speaker 1: and others, Milk in terms of the freedom of speech
Speaker 1: and other like That gets into a tight wire act
Speaker 1: right because that you know, is going to be something
Speaker 1: that investors want to know how he ultimately strategically is
Speaker 1: going to change Twitter and right now need to be
Speaker 1: There's more questions and answers, but all investors are focused
Speaker 1: on our four numbers five for twenty first stock that
Speaker 1: was in the threes. Yeah, and right now in the
Speaker 1: pre market, Twitter's trading at that's a surge of twelve
Speaker 1: point seven percent from yesterday's close. Dan, i'ves wet Bush
Speaker 1: Securities as always great to get your thoughts as we
Speaker 1: continue tracking the breaking news. Elon Musk with a hostile
Speaker 1: takeover bid for Twitter. As Dan mentioned, fifty four dollars
Speaker 1: twenty cents to Shery. Elon Musk says that's his final offer.
Speaker 1: Stay with us. Much more to come as Bloomberg Daybreak continues.
Speaker 1: This is Bloomberg Bloomberg eleven three O. Weather showers and
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Speaker 1: And we are getting news as we said we've been following.
Speaker 1: Elon Musko has made the best and final offer to
Speaker 1: buy Twitter, saying the company has extraordinary potential and he
Speaker 1: will unlock it. He is offering twenty cents a share
Speaker 1: in cash, and we spoke to Dana Ives about this deal.
Speaker 1: Put out the standard letter that they'll look at the
Speaker 1: bid in which they have to do, and then likely
Speaker 1: they'll probably do an active process see if there's any
Speaker 1: other bidders. I mean, well, they'll they'll go around the
Speaker 1: world looking for any of their bidders besides the Musk.
Speaker 1: But if you look at this premium and what he's
Speaker 1: going to pay, and obviously being rich personal world, he
Speaker 1: could do it himself. I mean, I think this is
Speaker 1: just a matter of time till till musco on Twitter
Speaker 1: and as Dan Ives have wed Bush Securities, Twitter shares
Speaker 1: at eleven and a half percent this morning. Also, we
Speaker 1: have some headlines crossing the Bloomberg. Earnings from Wells Fargo
Speaker 1: first quarter revenue missing analysts estimates. And let's go to
Speaker 1: the first word breaking news desk Now for today's morning call.
Speaker 1: Here's Bill Maloney, Bill, good morning, Hey, good morning, Karen.
Speaker 1: Us futures are somewhat quiet despite that elon Musk news
Speaker 1: doubt futures of fifty one points. Estimees are down three
Speaker 1: when Nestack futures dropped by ten views a ten year
Speaker 1: the two point seven percent, Gold is down eight oil
Speaker 1: trading lower, and bitcoin is down by point four percent.
Speaker 1: Japan rose one point two percent overnight, while Europan markets
Speaker 1: are posting modest games this morning. And back in the
Speaker 1: US on the economic front, Any thirty retail sales and
Speaker 1: initial jobs claims at ten o'clock, business inventories, and Michigan
Speaker 1: sentiment regarding earnings this morning, look for City Group, Golman
Speaker 1: Sacks Morgan Stanley to report also in the pre market.
Speaker 1: In other news, Google Facebook price targets were cut, with
Speaker 1: MKM cautious on online ads wrapping things up. Delta Airlines
Speaker 1: was raised to overweight over at Barklay's Live from the
Speaker 1: first breaking news that scom Bill malo care. All right, Bill,
Speaker 1: thank you to hear live breaking news overre Bloomberg type
Speaker 1: squawk on your terminal, s qu A w u K
Speaker 1: and that's a Bloomberg business flash. Now here's Michael Barr
Speaker 1: with more on what's going on around the world. Michael Karen,
Speaker 1: the suspect and Tuesday shooting at a Brooklyn subway station,
Speaker 1: is expected to appear before a judge later this morning.
Speaker 1: Frank James was arrest of the day after allegedly opened
Speaker 1: fire inside a subway car injuring at least twenty three people.
Speaker 1: In MLB, the Yankees and Orioles lost, the Mets, National's
Speaker 1: Red Sox Athletics and Giants one in the NHL, the
Speaker 1: Rangers one. Global news twenty four hours a day on
Speaker 1: here and on Bloomberg Quick Take, powered by more than
Speaker 1: twenty seven hundred journalists and analysts and more than a
Speaker 1: hundred twenty countries. On Michael bar This is Bloomberg. Nahiight, Michael,
Speaker 1: thank you. We are live from the Bloomberg Interactive Broker Studios,
Speaker 1: where it's coming up to six fifty on Wall Street.
Speaker 1: Timed owt to check what's going on in d C,
Speaker 1: where some of the top stories include President Biden announcing
Speaker 1: new heavy weapons heading to Ukraine as the country faces
Speaker 1: new offensives from Russia, Treasury Secretary yell In warning China
Speaker 1: of potential fallout over its ties to Moscow, and the
Speaker 1: White House blasting Texas as inspections snarled traffic from Mexico.
Speaker 1: Let's get more and now live from the International Monetary
Speaker 1: Fund headquarters, where we find Bloomberg Washington, correspondent Amory Hord
Speaker 1: during this morning. Amory, before we get to some of
Speaker 1: those stories, I wonder if we've gotten any White House
Speaker 1: reaction at this point to the arrest in the Brooklyn
Speaker 1: subway shooting. Not quite yet, But what we did hear
Speaker 1: from the President of the course of the week and
Speaker 1: White off officials that they've been working in lockstep with
Speaker 1: the local officials on the ground in New York as
Speaker 1: of course the FBI as well of involved. But the
Speaker 1: President is going to be traveling today, he'll be out
Speaker 1: in about the country. He's going to North Carolina, and
Speaker 1: I imagine we will get some reaction from the president.
Speaker 1: This is something to press is certainly going to ask him. Yeah, certainly. Well,
Speaker 1: we have heard from the President so far, as I mentioned,
Speaker 1: is this announcement of what eight hundred million dollars in
Speaker 1: new military aid to Ukraine on top of the billions
Speaker 1: that have already been promised in the war. What kind
Speaker 1: of firepower we talking about here, and Marie, so this
Speaker 1: will include artillery, helicopters, ammunition, u unmanned surface vessels of
Speaker 1: coastal defense, humby switchblade drones and also and I think
Speaker 1: this really shows where the United States is potentially concerned
Speaker 1: about where the conflict might lead. Next, there's sending individual
Speaker 1: chemical biological protective suits and detective systems for these types
Speaker 1: of chemical warfare. So it's really a huge package, and
Speaker 1: it's going through presidential authority. So it's a quick draw
Speaker 1: down of US stocks and supplies to Ukraine and some
Speaker 1: of these weapons, as you can tell in the name,
Speaker 1: they signal really a more significant military commitment, but also
Speaker 1: um the military equipment. The beginning was very defensive. You
Speaker 1: do see this moving to a little bit more offensive
Speaker 1: our last minute here, and Marie, we've heard some pretty
Speaker 1: strong words from Treasury Secretary Yelling ahead of the meeting
Speaker 1: of global financial chiefs in Washington next week. Yes, she
Speaker 1: blasted China for practices that quote unfairly damage the national
Speaker 1: security interests of others, And she really talked about even
Speaker 1: though she said she didn't want the evolution of a
Speaker 1: quote bipolar global system, she really talked about the fact
Speaker 1: that China needs to recognize that if it wants the
Speaker 1: international community to a bide by their sovereignty, they also
Speaker 1: need to do the same. So really a stark warning
Speaker 1: coming from the Treasury Secretary specifically aimed at China. I
Speaker 1: would say, all right, thanks as always for joining us.
Speaker 1: Bloomberg Washington correspondent and Marie Hordern with us from the
Speaker 1: I m F this morning. Read more at Bloomberg dot
Speaker 1: com or on the Bloomberg terminal. Listen to Bloomberg Radio
Speaker 1: in Washington at Bloomberg one and one oh five point
Speaker 1: seven FM HD two. We're coming up to six fifty
Speaker 1: three on Wall Street, and we are getting earnings this morning.
Speaker 1: Crossing the Bloomberg Terminal from Wells Fargo as the parade
Speaker 1: of big Wall Street bank earnings continues, skill live to
Speaker 1: Bloomberg Intelligence Senior financial analyst Alison Williams for more details
Speaker 1: on some of these headlines that we are seeing from
Speaker 1: Wells Fargo this morning, not the least of which Allison
Speaker 1: first quarter revenue coming in shy of analyst estimates. It did,
Speaker 1: and I haven't you know, I'm still going through UM
Speaker 1: the release, so I'm not sure exactly where the short
Speaker 1: pall was. I would say that the couple of things
Speaker 1: UM that I've focused on so far, actually it looks
Speaker 1: like the net interest income is a little light, so
Speaker 1: that that's a negative, because that's obviously one of the
Speaker 1: things that analysts are looking for UM increasingly to help
Speaker 1: the company. But the two things that I'm focusing on
Speaker 1: are are where we got the short falls yesterday with
Speaker 1: JP Morgan, and that's the provision and the capital ratio.
Speaker 1: On the provision side for Wells, it looks like they
Speaker 1: had a net reserve release UM, so that's we'll want
Speaker 1: to hear more about that. But one thing I would
Speaker 1: point out is that Wells Fargo was much UM still
Speaker 1: much more reserved versus the other banks coming into this quarter.
Speaker 1: So while UH, JP Morgan, Bank America City Group had
Speaker 1: taken the reserve sort of back to UM levels at
Speaker 1: the start of the pandemic, well still had a pretty
Speaker 1: big buffer. A lot of that really relates to their
Speaker 1: commercial real estate exposure UM, and that might be UM
Speaker 1: why they are still letting a little bit of reserves
Speaker 1: go versus kind of going the other way, which is
Speaker 1: what we saw JP Morgan. The capital ratio though, does
Speaker 1: look light, coming in at about ten and a half percent,
Speaker 1: And so for the banks short term rates higher, that's
Speaker 1: a great thing. Long term rates higher, they have to
Speaker 1: mark down UM the value of securities UM, and that
Speaker 1: sort of runs through their capital ratio, and we knew
Speaker 1: that was something that banks was gonna go We're going
Speaker 1: to take a hit on this quarter, but it does
Speaker 1: look like that might be coming in a little bit
Speaker 1: worse than expected. It's a it's an accounting thing. It
Speaker 1: does reverse over time, but it can lead to lower
Speaker 1: repurchases in the near term and that's the negative. Only
Speaker 1: about thirty seconds left here, Alison, we've gotten some commentary
Speaker 1: from the CEO Wells Fargo saying the war in Ukraine
Speaker 1: adds additional risk to the downside. What could that tell
Speaker 1: us as far as the other banks reporting later on
Speaker 1: this morning. It's something we're watching across all the banks. Um.
Speaker 1: That is the reason why, or one of the reasons
Speaker 1: why we saw the bigger reserve at JP Morgan Wells Fargo,
Speaker 1: as you know, is much more domestically focused. So what
Speaker 1: they're referring to I think are really the knock on effects. Um.
Speaker 1: So again, their reserve looks like they had a release.
Speaker 1: We want to hear a little bit more about what
Speaker 1: are the economic scenarios that they're factoring in. How is
Speaker 1: this impacting their underwriting and their loan growth. Thanks for this,
Speaker 1: Alison Williams of Bloomberg Intelligence. As we continue watching Wells
Speaker 1: Fargo earnings headlines across the Bloomberg terminally in the pre market,
Speaker 1: Wells Fargo shares now Karen are down three and a
Speaker 1: half percent. All right, Nathan, thank you well. At six
Speaker 1: fifty six on Wall Street, and we turned to news
Speaker 1: and science and Technology now with a Bloomberg and j
Speaker 1: I T. Stem report. It is Ronzi you buy New
Speaker 1: Jersey Institute of Technology, ranked a top fifty national public
Speaker 1: university by US News and World Report and at top
Speaker 1: ten for best career placement among public schools by the
Speaker 1: Princeton Review. More at and j I T. Dot E
Speaker 1: d U and now here's US making news and science, Technology, Engineering,
Speaker 1: and math. And China President Shi Jin Ping says his
Speaker 1: government will stick toward zero tolerance approach to the coronavirus.
Speaker 1: That's despite public anger and mounting economic costs. She spoke
Speaker 1: the same day that Shanghai reported a record of almost
Speaker 1: twenty eight thousand new cass The city's twenty five million
Speaker 1: residents have been locked down for several weeks. The lockdowns
Speaker 1: in China are having an impact here. Shoppers will face
Speaker 1: longer wait times to buy Apple's MacBook pro laptops. US
Speaker 1: consumers trying to order the latest high end models are
Speaker 1: now seeing delivery estimates pushed into June. Number of companies
Speaker 1: that assemble mac books and China have halted production because
Speaker 1: of the lockdowns. And Toyota is recalling about four d
Speaker 1: sixty thousand vehicles in the US to fix a software
Speaker 1: problem that can inadvertently disable the electronic stability control system.
Speaker 1: The automakers says that when the vehicles are restarted, the
Speaker 1: software and rare cases may not automatically switch the system
Speaker 1: into the on mode and that can disable the system.
Speaker 1: And that's a Bloomberg and j I T Stem report.
Speaker 1: We continue to watch shares of Twitter this morning up
Speaker 1: more than eleven percent after Elon Musk made a best
Speaker 1: and final offer to buy the company, and straight ahead
Speaker 1: it is a Bloomberg surveillance. Tom Keene and Lisa Abramowitz
Speaker 1: at the I m F this morning for Nathan Hankar
Speaker 1: on Karen Moscow, and this is Bloomberg