WEBVTT - Bloomberg Daybreak: April 14, 2022 Hour 2 (Radio) 0:00:03.960 --> 0:00:06.960 Live from the Bloomberg Interactive Broker Studios. This is Bloomberg 0:00:07.040 --> 0:00:10.680 day Break for Thursday, April fourteen. Coming up this hour, 0:00:10.800 --> 0:00:14.560 he accused Brooklyn subway shooter faces terrorism charges in federal 0:00:14.600 --> 0:00:17.759 court today. President Biden authorizes eight hundred million dollars in 0:00:17.800 --> 0:00:21.160 new military aid for Ukraine and bank earnings roll in Goldman, 0:00:21.200 --> 0:00:24.040 Sachs City Group and Morgan Stanley all report this morning. 0:00:24.079 --> 0:00:27.320 New York surgeon COVID cases are driven by a new subvariant. 0:00:27.320 --> 0:00:30.160 Plus Texas Governor Greg Abbott the highest pressure from those 0:00:30.160 --> 0:00:33.400 opposed to his new border policy. By Michael Blarm More Ahead, 0:00:33.600 --> 0:00:36.800 I'm time Stashoward Sports Ladimer Guerrero's three home runs lift 0:00:36.800 --> 0:00:39.680 in Toronto over the Yankees the medicine Rangers both one 0:00:39.840 --> 0:00:47.840 in Philadelphia. That's all straight ahead on Bloomberg day Break 0:00:48.040 --> 0:00:52.560 on Bloomberg eleven, Free on New York, Bloomberg one, Washington, 0:00:52.640 --> 0:00:57.640 d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, Francisco, 0:00:58.000 --> 0:01:01.280 Sirius x M one nineteen and around the world on 0:01:01.440 --> 0:01:04.840 Bloomberg Radio dot Com and via The Bloomberg Business At 0:01:07.280 --> 0:01:10.080 Good Morning. I'm Nathan Hagar, and I'm Karen, Moscow and 0:01:10.200 --> 0:01:13.279 US DOT Index futures are a little change this morning 0:01:13.319 --> 0:01:15.360 heading into the holiday weekend. We're coming up to six 0:01:15.360 --> 0:01:17.160 o one on Wall Street. We check the markets every 0:01:17.160 --> 0:01:19.760 fifteen minutes throughout the trading day. On Bloomberg. Right now, 0:01:19.880 --> 0:01:23.280 SNP futures are again little change. Down futures are up 0:01:23.319 --> 0:01:25.759 thirty one now and as Day future is up twenty one. 0:01:25.959 --> 0:01:28.520 The decks in Germany is little changed, and your treasury 0:01:28.600 --> 0:01:31.080 little changed as well. Yea two point six nine percent 0:01:31.480 --> 0:01:33.360 and they yield on the two year is at two 0:01:33.400 --> 0:01:36.280 point three four percent. Nathan, Karen, We'll have one markets 0:01:36.319 --> 0:01:38.800 in just a minute, but first, the suspected shooter in 0:01:38.840 --> 0:01:41.840 the Brooklyn subway is set to appear in court today. 0:01:42.160 --> 0:01:44.920 Bloomberg's Michael Barr joins US Live with the very latest. 0:01:44.959 --> 0:01:47.240 Good morning, Michael, Good morning, Nathan. The man accused of 0:01:47.319 --> 0:01:50.120 being the gunman who shot ten people and wounded others 0:01:50.320 --> 0:01:53.800 in a Brooklyn subway station was arrested in Manhattan yesterday. 0:01:54.160 --> 0:02:02.000 Mayor Eric Adams, we got police responded to except that 0:02:02.040 --> 0:02:04.760 the sixty two year old was ad a McDonald's in 0:02:04.840 --> 0:02:09.320 Manhattan's East Village. James allegedly fired a nine millimeter glock 0:02:09.400 --> 0:02:13.680 handgun at least thirty three times in the Manhattan bound 0:02:13.800 --> 0:02:18.360 in train. James, with addresses in Philadelphia and the Milwaukee area, 0:02:18.400 --> 0:02:21.440 will make an initial court appearance on terrorism charges in 0:02:21.600 --> 0:02:25.200 federal court in Brooklyn. U S Attorney Brian Peace, and 0:02:25.200 --> 0:02:28.160 if convicted, he will face a sentence of up to 0:02:28.280 --> 0:02:32.200 life imprisonment. U S Attorney Peace says the government will 0:02:32.320 --> 0:02:35.800 prove that James traveled across state lines in order to 0:02:35.840 --> 0:02:39.080 commit the offense in New York. Michael Barb Bloomberg Daybreak, 0:02:39.160 --> 0:02:42.120 Karen all Right, Michael Barr, thank you while the subway shooting. 0:02:42.160 --> 0:02:45.279 His prompt questions and how Frank James might be prosecuted 0:02:45.280 --> 0:02:48.440 in this case. David Schwartz is a former Brooklyn prosecutor 0:02:48.480 --> 0:02:52.359 and partner at Gertzman Schwartz. Bottom charges will be the 0:02:52.720 --> 0:02:56.200 federal terrorism charge, will be attempted murder charges. On the 0:02:56.240 --> 0:02:59.680 state level. There will be state charges. I believe federal 0:02:59.800 --> 0:03:03.360 arges the federal case will come first. And former Brooklyn 0:03:03.400 --> 0:03:06.560 prosecutor David Schwartz spoke with our Washington corresponded Joe Matthew 0:03:06.600 --> 0:03:09.200 on Bloomberg Sound on Catch the Program weekdays at five 0:03:09.200 --> 0:03:11.600 pm Eastern on Bloomberg Radio. Right, let's get to the 0:03:11.720 --> 0:03:14.760 latest on the war in Ukraine. Karen Russia continues to 0:03:14.800 --> 0:03:17.560 reposition for new attacks in the east and south. The 0:03:17.600 --> 0:03:20.400 mayor of Maripol says more than twenty thousand people have 0:03:20.480 --> 0:03:22.840 been killed in the weeks long siege of his city, 0:03:23.120 --> 0:03:26.160 and now President Biden has announced eight hundred million dollars 0:03:26.320 --> 0:03:29.320 in new military aid for Ukraine. Bloomberg's Sad Baxter has 0:03:29.360 --> 0:03:32.239 the story. The package includes artillery, ammunition, and White House 0:03:32.240 --> 0:03:36.080 spokeswoman Jensaki says helicopters. It was unclear for a while 0:03:36.360 --> 0:03:39.320 um from their side whether they wanted additional helicopters. We 0:03:39.360 --> 0:03:42.120 have provided them helicopters in the past, uh, And today 0:03:42.160 --> 0:03:44.640 they make clear they wanted them in so we said, great, 0:03:45.080 --> 0:03:47.600 They're helicopters in the package. So the new shipment marks 0:03:47.600 --> 0:03:51.600 a shift toward more offensive weapons. Prior shipments had been 0:03:52.080 --> 0:03:56.520 defensive systems. In San Francisco, I'm at Baxter Bloomberg Day Break, 0:03:56.640 --> 0:03:58.600 All right, and thank you all. Turning to the markets now, 0:03:58.640 --> 0:04:01.960 bank earnings continue with Oleman Snacks, Morgan, Stanley, City Group, 0:04:01.960 --> 0:04:04.280 and Wells Fargo all reporting this morning. We get a 0:04:04.320 --> 0:04:08.360 preview from Bloomberg Shinali Balsac. After JP Morgan reported earnings, 0:04:08.360 --> 0:04:10.440 it turns out that trading did not fall as much 0:04:10.440 --> 0:04:13.000 as expected. That should bode well for Goldman Sachs and 0:04:13.040 --> 0:04:15.960 Morgan Stanley, which have a greater percentage of their earnings 0:04:16.000 --> 0:04:20.000 tied to trading businesses. The consumer is also in pretty 0:04:20.000 --> 0:04:22.280 strong shape, but there are some businesses that are not 0:04:22.400 --> 0:04:25.360 growing very quickly as rates start to rise. That will 0:04:25.400 --> 0:04:28.640 be of importance for Wells Fargo as it reports earnings today, 0:04:29.000 --> 0:04:31.080 and for City Group there will be questions around the 0:04:31.120 --> 0:04:33.719 Russia exposure and whether the bank has to take losses 0:04:33.800 --> 0:04:36.800 tied to the country. I'm Shnoli Bassak for Bloomberg day Break. 0:04:36.800 --> 0:04:39.040 All right, Shinali, thank you when we get another snapshot 0:04:39.040 --> 0:04:41.080 this morning on the health of the U s economy 0:04:41.200 --> 0:04:43.960 with the March reading on retail sales here the preview 0:04:44.080 --> 0:04:47.320 is Bloomberg's Michael McKee. March was a month of skyrocket 0:04:47.320 --> 0:04:50.880 and gasoline prices, so dollars collected at service stations should 0:04:50.920 --> 0:04:54.000 lead the forecast gains, but that may mean less spent 0:04:54.080 --> 0:04:57.800 on other categories. A Chicago Fed index that tracks retail 0:04:57.880 --> 0:05:01.520 sales suggests factor of gasoline, autos and March retail sales 0:05:01.520 --> 0:05:04.520 may have declined significantly. To get a clearer picture of 0:05:04.520 --> 0:05:08.000 American spending, will also have to factor out inflation, which 0:05:08.040 --> 0:05:11.200 is at its highest since nine Given the Fed is 0:05:11.240 --> 0:05:14.400 expected to raise interest rates aggressively to bring inflation down, 0:05:14.800 --> 0:05:18.839 some retail strength would reassure policymakers the economy isn't about 0:05:18.839 --> 0:05:22.520 to go into recession. Michael McKee, Bloomberg Daybreak. Sorry Michael, 0:05:22.520 --> 0:05:24.640 thank you well. Please join Mike later this morning on 0:05:24.680 --> 0:05:27.160 Bloomberg Surveillance when he speaks live with New York Fan 0:05:27.240 --> 0:05:29.880 President John Williams. It's coming up at forty five am 0:05:29.920 --> 0:05:32.920 all street time on both Bloomberg Radio and television. Of course, 0:05:32.920 --> 0:05:35.359 taming inflation is front and center for the Fed. Karen 0:05:35.400 --> 0:05:38.440 and Treasury Secretary Janet Yellen says the Central Bank does 0:05:38.480 --> 0:05:41.640 have a tough balancing act ahead, but it can be done. 0:05:42.200 --> 0:05:47.320 They will um try to maintain strong labor markets while 0:05:47.360 --> 0:05:52.000 bringing inflation down. But and it has been done in 0:05:52.040 --> 0:05:56.479 the past. It's not an impossible combination, but um it 0:05:56.520 --> 0:05:59.800 will require skill and also good luck. Janet Yellen says 0:05:59.800 --> 0:06:02.880 she'll convene a meeting of top international financial officials next 0:06:02.920 --> 0:06:05.880 week to address a global food security crisis stemming from 0:06:05.920 --> 0:06:09.320 record prices overseas. Nathan, we get a policy decision from 0:06:09.320 --> 0:06:12.400 the European Central Bank this morning. Economists say the ECB 0:06:12.520 --> 0:06:16.120 will almost certainly stand pat They're likely prioritize to fight 0:06:16.160 --> 0:06:18.600 against inflation of our risk to the economy caused by 0:06:18.600 --> 0:06:21.320 the war in Ukraine. Meantime, karent inflation may soon have 0:06:21.400 --> 0:06:24.440 you paying higher prices at Amazon. Joining us here live 0:06:24.480 --> 0:06:27.040 to explain that. As Bloomberg's rnitda Young, Good morning, Ranita, 0:06:27.040 --> 0:06:30.400 Good morning, Nathan. Amazon merchants were already grappling with cost 0:06:30.440 --> 0:06:33.480 related fee hikes that took effect in January and average 0:06:33.520 --> 0:06:36.840 five percent, And now Bloomberg News has learned Amazon is 0:06:36.880 --> 0:06:40.040 adding a five percent fuel and inflation fee on merchants 0:06:40.040 --> 0:06:43.240 that use its shipping services. That's putting pressure on sellers 0:06:43.240 --> 0:06:45.960 to raise prices. It's scheduled to kick in on April. 0:06:46.839 --> 0:06:49.320 Amazon joins a range of companies who've had to take 0:06:49.360 --> 0:06:53.359 action to offset rising costs. Airlines are raising ticket prices, 0:06:53.440 --> 0:06:56.719 Uber and Lift added fuel surcharges and s FedEx and 0:06:56.880 --> 0:07:00.159 Ups have also raised their prices. Live in New York. 0:07:00.240 --> 0:07:02.040 I'm gonna need a young Bloomberg day all right, we 0:07:02.120 --> 0:07:04.240 need to thank you. Bloomberg Daybreak is brought to you 0:07:04.279 --> 0:07:06.640 by b n Y Melon's Pershing learned why the world's 0:07:06.680 --> 0:07:10.400 most sophisticated wealth management and institutional firms rely on Pershing 0:07:10.640 --> 0:07:14.040 to help them improve profitability, create efficiency, attract talent, and 0:07:14.080 --> 0:07:18.680 manage risk at pershing dot com. You're listening to Bloomberg 0:07:18.720 --> 0:07:24.480 Daybreak and it sounds like so seven on Wall Street 0:07:24.520 --> 0:07:27.600 got some showers in Central Park fifty eight degrees. Let's 0:07:27.600 --> 0:07:30.560 get more on what we know about the Brooklyn subway 0:07:30.600 --> 0:07:32.600 suspect and more on what's happening in New York and 0:07:32.640 --> 0:07:35.120 around the world. Michael bar back with us this morning. Michael, 0:07:35.200 --> 0:07:37.160 thank you very much. Nathan. We're learning more about the 0:07:37.160 --> 0:07:40.840 suspected Brooklyn subway shooter who was arrested yesterday in Manhattan 0:07:41.240 --> 0:07:45.480 and East Village hardware store manager says he helped Megan happen. 0:07:45.800 --> 0:07:48.680 Francisco Pebli says he was working at a store when 0:07:48.680 --> 0:07:51.840 he looked up and saw the suspect. Frank James walked 0:07:51.960 --> 0:07:55.800 right by. He wasn't like a normal person if he 0:07:55.880 --> 0:07:59.920 didn't resist anything. He just like staying calm and then 0:08:02.120 --> 0:08:04.720 Reblood notified police who were down the block, and minutes 0:08:04.800 --> 0:08:08.520 later the suspect was in custody. NYPD Chief of Detectives 0:08:08.560 --> 0:08:12.000 James Essex says James has a record. He's arrest history 0:08:12.040 --> 0:08:16.400 in New York is nine prior arrests dating from nineteen 0:08:16.640 --> 0:08:22.400 nine two. Chief Essex also says James was arrested several 0:08:22.440 --> 0:08:25.520 times in New Jersey. The New York State Health Department 0:08:25.560 --> 0:08:28.600 says two new O macron sub variants that appear even 0:08:28.640 --> 0:08:32.480 more transmissible than the highly contagious b A two are 0:08:32.559 --> 0:08:35.320 driving an uptick in COVID cases in the state. The 0:08:35.360 --> 0:08:38.680 department estimates that they have twenty three percent to seven 0:08:39.120 --> 0:08:42.120 growth advantage over the b A two variant that was 0:08:42.320 --> 0:08:47.200 itself more infectious than the original omicron variant. And Ohio 0:08:47.240 --> 0:08:50.000 man who acknowledges he joined the mob at the US 0:08:50.080 --> 0:08:53.520 Capitol last year and ignored a variety of warning signs, 0:08:53.559 --> 0:08:57.520 says he was only following orders from the President Donald Trump. 0:08:57.720 --> 0:09:00.160 The man, thirty eight year old Dustin Byron Thompson, and 0:09:00.160 --> 0:09:03.880 testified during its trial in federal court in Washington. Thompson's 0:09:03.920 --> 0:09:06.080 defense team is the first to argue that Trump and 0:09:06.160 --> 0:09:10.199 others were responsible for the mob's actions. Traffic between Mexico 0:09:10.280 --> 0:09:13.240 and the US has been snarled since Texas Governor Greg 0:09:13.280 --> 0:09:17.880 Abbott ordered commercial trucks undergo extra inspections. Is part of 0:09:17.880 --> 0:09:21.439 the Republican governor's fight with the Biden administration over immigration. 0:09:21.800 --> 0:09:25.280 Texas law enforcement is apprehending the illegal immigrants that got 0:09:25.280 --> 0:09:30.280 away from the border patrol, including previously convicted murderers, previously 0:09:30.280 --> 0:09:35.280 convicted child rapists, kidnappers, drug traffickers, MS thirteen gang members, 0:09:35.520 --> 0:09:39.120 and cartel gang members. Governor Rabbit says the standoff has 0:09:39.200 --> 0:09:43.240 stoked warnings by trade groups and experts that US grocery 0:09:43.280 --> 0:09:47.040 shoppers could soon notice shortages on shelves and higher prices. 0:09:47.600 --> 0:09:50.080 Global News twenty four hours a day on air and 0:09:50.240 --> 0:09:53.760 on Bloomberg Quicktake, powered by more than seven hundred journalists 0:09:53.760 --> 0:09:56.440 and analysts more than a hundred, twenty countries. Michael Barr, 0:09:56.480 --> 0:10:02.920 this is Bloomberg Games, Okay, Michael, thank you. Count up 0:10:02.920 --> 0:10:04.760 to six ten on Wall Street Time for the Bloomberg 0:10:04.840 --> 0:10:08.280 Sports Update with John sash Ower A Nathan Yankees beaten 0:10:08.280 --> 0:10:11.559 by the Blue Jays, more specifically beaten by one Blue 0:10:11.640 --> 0:10:15.840 Jay Pats leaving off this seat. Dathan Elizaka's first pitches swam? 0:10:15.880 --> 0:10:20.920 How did deep Bluff field? That phone is gone? Vladimir 0:10:21.000 --> 0:10:30.000 Guerrero Jr. With the three Holber game night. He does 0:10:30.040 --> 0:10:32.560 it in the Bronx Jays Radio the call. He also 0:10:32.600 --> 0:10:34.520 had a three home run game last season. Two of 0:10:34.559 --> 0:10:37.079 the home runs, plus the double came against Garrett Cole. 0:10:37.200 --> 0:10:39.720 Most of it all came after Guerrero cut his hand 0:10:40.160 --> 0:10:42.400 on a play in the field. Toronto one, six to four. 0:10:42.840 --> 0:10:44.760 It's early in the season, but a couple of Yankee 0:10:44.800 --> 0:10:47.520 concerns too much reliance on the home run. They hit 0:10:47.559 --> 0:10:50.480 three Anthony Rizzo Aaron Judge in gladbor Tores, but they 0:10:50.520 --> 0:10:54.200 score only one other run. Also, Kyle Agasha Yoka promoted 0:10:54.240 --> 0:10:57.600 the starting catcher Isaiah Kiner Felfa brought it into the 0:10:57.600 --> 0:11:00.520 new shortstop. Together, they are a combined two of thirty 0:11:00.559 --> 0:11:03.000 five series ends. Tonight, Mets are off. They have their 0:11:03.000 --> 0:11:05.320 whole opener tomorrow to include the unveiling of the Tom 0:11:05.400 --> 0:11:08.440 Siever's statue. It will all happen on the seventy fifth 0:11:08.440 --> 0:11:11.320 anniversary of Jackie Robinson's debut in Brooklyn. The Mets at 0:11:11.400 --> 0:11:14.120 up five and two road trip they wanted Philadelphia nine 0:11:14.160 --> 0:11:16.920 to six. Peter Alonso followed up his Grand Slam the 0:11:16.960 --> 0:11:19.160 other day with a three run homer. Five RBIs Max 0:11:19.160 --> 0:11:21.800 sernser Is now two and oh. Also in Philly, Rangers 0:11:21.800 --> 0:11:23.800 won four and up in twenty eight says for Alex 0:11:23.880 --> 0:11:27.440 Georgie Copo CaCO scored the first two goals. NBA play 0:11:27.480 --> 0:11:29.760 in two more wins by the home teams Atlanta by 0:11:29.840 --> 0:11:33.400 twenty nine, ending Charlotte's season. New Orleans took out San Antonio's. 0:11:33.400 --> 0:11:36.680 In tomorrow, HAPs visit Cleveland, Pelicans at the Clippers and 0:11:36.679 --> 0:11:40.920 the winners advanced John Stash were Bloomberg Scorts, Nathan Okay, John, 0:11:40.960 --> 0:11:42.920 thank you right now. S and P futures are up 0:11:43.000 --> 0:11:46.000 one point down, futures up fifty three, Nestex futures are 0:11:46.080 --> 0:11:49.360 higher by eighteen points. Looking at the tenure, it is 0:11:49.480 --> 0:11:52.400 down one thirty second with the yield two point seven 0:11:52.520 --> 0:11:55.080 zero percent. The yield on the two year right now 0:11:55.120 --> 0:11:57.800 two point three four percent, and nime X screwed is 0:11:57.880 --> 0:12:00.000 down one in a quarter percent, down to dollar thirty 0:12:00.400 --> 0:12:08.760 to a hundred two dollars a barrel. This is Bloomberg, Bloomberg, 0:12:08.760 --> 0:12:10.800 gay Berg brought to you by Ancient Accountants and Advisor's 0:12:10.840 --> 0:12:13.720 challenging times call for proactive advisors who help minimize taxes, 0:12:13.760 --> 0:12:16.760 increased cash phone create opportunities for the future of your business. 0:12:17.120 --> 0:12:25.480 Visit Ancient dot com markets, headlines and breaking news twenty 0:12:25.559 --> 0:12:28.360 four hours a day at Bloomberg dot Com, the Bloomberg 0:12:28.440 --> 0:12:31.959 Business at and at Bloomberg Quicktake, This is a Bloomberg 0:12:32.080 --> 0:12:40.520 business flash. Hey, good morning. I'm Karen Moscow, and we 0:12:40.600 --> 0:12:44.560 do have headlines crossing the Bloomberg now involving Twitter Elon 0:12:44.679 --> 0:12:48.080 Musk offering to buy Twitter for fifty four dollars twenty 0:12:48.160 --> 0:12:50.920 cents a share in cash. This is according to a 0:12:51.040 --> 0:12:53.760 regulatory filing in a letter to the Chairman of the 0:12:53.880 --> 0:12:58.720 board must saying quote Twitter has extraordinary potential. I will 0:12:59.040 --> 0:13:02.440 unlock it. Twitter shares are up thirteen percent right now 0:13:02.559 --> 0:13:05.160 in early trading, and we're going to get full details 0:13:05.200 --> 0:13:07.800 and perspective on this with Gene Monster of Loop Ventures 0:13:08.200 --> 0:13:11.199 in just moments from now. We're also watching United health 0:13:11.240 --> 0:13:13.320 Group and raised his forecast for the year as double 0:13:13.360 --> 0:13:16.600 digit revenue growth and lower operating costs help the healthcare 0:13:16.679 --> 0:13:20.199 giant beat analysts estimates SMP future is a little change 0:13:20.280 --> 0:13:22.439 this morning. Down Future is up sixty one points and 0:13:22.520 --> 0:13:26.000 nasdack futures that will change. Tenure Treasury down to thirty seconds, 0:13:26.160 --> 0:13:28.319 l two point seven zero percent, yield on the two 0:13:28.400 --> 0:13:31.199 year two point three four percent, and NIMEX screwed oil 0:13:31.600 --> 0:13:34.880 is down one point four percent. Again. Twitter shares up 0:13:34.920 --> 0:13:37.120 more than well twelve and a half percent in early 0:13:37.240 --> 0:13:39.840 trading right now, and as a Bloomberg Business flash, now, 0:13:39.880 --> 0:13:42.080 here's Michael Barr with more on what's going on around 0:13:42.120 --> 0:13:44.439 the world. Michael here in the suspect that rested in 0:13:44.480 --> 0:13:48.520 the Brooklyn subway shooting the left ten people wounded by gunfire. Also, 0:13:48.679 --> 0:13:52.040 he left behind a trope of angry YouTube videos. Please 0:13:52.080 --> 0:13:55.360 we're studying them for a possible motive. Frank James vented 0:13:55.360 --> 0:13:58.920 about racism in America, his struggles with mental illness, New 0:13:59.040 --> 0:14:02.040 York City's New Air and nine eleven, among other things. 0:14:02.440 --> 0:14:05.880 In MLB, the Yankees and Orioles, lost, Mets, Nationals, Red 0:14:05.920 --> 0:14:09.480 Sox A's Giants all one in the NHL, the Rangers. 0:14:09.559 --> 0:14:12.440 One Global News twenty four hours a day on air 0:14:12.559 --> 0:14:15.880 and on Bloomberg Quicktake, powered by more than twenty seven 0:14:15.920 --> 0:14:18.360 hundred journalists, and analysts in more than a hundred twenty 0:14:18.440 --> 0:14:21.040 countries on Michael bar This is Bloomberg Nian Michael, thank you. 0:14:21.200 --> 0:14:23.480 It is six nineteen on Wall Street Live from the 0:14:23.480 --> 0:14:28.240 Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak with breaking 0:14:28.320 --> 0:14:31.600 news in the m and A space. Elon Musk is 0:14:31.720 --> 0:14:34.800 offering to buy Twitter for fifty four dollars in twenty 0:14:34.840 --> 0:14:37.760 cents to share. He didn't announce it on the social 0:14:37.840 --> 0:14:40.960 media platform. He announced it through an SEC filing. Let's 0:14:41.000 --> 0:14:43.840 get some initial reaction now. Gene Munster joins us live, 0:14:43.920 --> 0:14:46.560 the co founder of Loop Ventures. Just a couple of 0:14:46.600 --> 0:14:50.880 headlines crossing on this announcement. Gene Elon Musk, the Tesla 0:14:51.040 --> 0:14:53.640 and space X CEO, says he does not have confidence 0:14:53.680 --> 0:14:57.840 in Twitter's management. He says Twitter has extraordinary potential. I 0:14:58.120 --> 0:15:03.400 will unlock it. Your action. Welcome to the world of 0:15:03.880 --> 0:15:08.400 Elon Musk. Once again here unpredictable by design, and I 0:15:08.520 --> 0:15:12.360 think his approach is to uh think big. He's doing 0:15:12.440 --> 0:15:16.840 that here. My reaction is that the premium that he's 0:15:16.920 --> 0:15:22.600 offering is somewhat modest premium. This is a cential where 0:15:22.640 --> 0:15:26.800 the stock spiked too recently and so um, I think 0:15:26.880 --> 0:15:30.400 the uh, this is not a slam dunk that it 0:15:30.520 --> 0:15:34.800 gets done at this price, and probably safe to say 0:15:34.880 --> 0:15:38.040 that this is not his final price either. I suspect 0:15:38.120 --> 0:15:40.240 he's not going to lead with his final price again, 0:15:40.360 --> 0:15:44.440 just a modest premium to where the stock was yesterday 0:15:44.760 --> 0:15:48.200 versus and essentially where it was at the peak when 0:15:48.240 --> 0:15:51.440 it's spiked this week. So look for this to uh, 0:15:51.840 --> 0:15:54.080 you know, kind of take on some more contours where 0:15:54.200 --> 0:15:57.000 he may have to raise his bid. And I think 0:15:57.080 --> 0:16:00.080 the other piece too is that is surprising to me 0:16:00.240 --> 0:16:03.720 that the piece that he's putting a pusher, bigger push 0:16:03.840 --> 0:16:06.360 is not surprising. The one thing that is surprising is 0:16:06.440 --> 0:16:10.000 that this is a time think, you know, he's really 0:16:10.520 --> 0:16:13.400 wants to take all of this on here. And I 0:16:13.560 --> 0:16:17.600 had previously predicted that he wanted to have a bigger role, 0:16:17.680 --> 0:16:20.840 he wanted to have an influence even after he stepped 0:16:21.160 --> 0:16:24.000 off of the board. Um. I thought that he just 0:16:24.080 --> 0:16:26.400 still wanted to have an influence. But this is a 0:16:26.520 --> 0:16:31.440 much different contour to it, and that part is surprised 0:16:31.480 --> 0:16:35.400 because there's a capacity question there. Of course, once you 0:16:35.720 --> 0:16:40.920 layer in Tesla and SpaceX. Now we're watching the reaction 0:16:41.240 --> 0:16:43.880 in the Twitter shares in the pre market, they had 0:16:43.960 --> 0:16:46.880 spiked as much as on the news right now in 0:16:46.960 --> 0:16:50.480 early trading their up twelve. Of course, Musk on his 0:16:50.600 --> 0:16:53.200 Twitter feed has thrown a lot of spaghetti on the 0:16:53.240 --> 0:16:56.560 wall in terms of changes that may be real or 0:16:56.600 --> 0:16:59.240 imagine that he might like to see, from adding an 0:16:59.360 --> 0:17:02.680 edit button for tweets to uh. At one point, he 0:17:03.040 --> 0:17:06.400 floated the idea of turning Twitter's existing headquarters in Silicon 0:17:06.560 --> 0:17:09.840 Valley into a homeless shelter. What kind of changes do 0:17:10.040 --> 0:17:16.359 you think concretely and elon Musk, majority stakeholder Twitter, would 0:17:16.680 --> 0:17:21.520 look like. I think there are two essential pieces to it. 0:17:21.680 --> 0:17:24.000 First is that I think he's gonna make it so 0:17:24.680 --> 0:17:29.159 it's harder for Twitter to manage the content on on 0:17:29.520 --> 0:17:33.280 on the platform. This is something that is very important, Jim. 0:17:33.359 --> 0:17:35.160 This is why we are here in the first place. 0:17:35.720 --> 0:17:38.359 It is his view that Twitter has been punitive to 0:17:38.840 --> 0:17:41.960 some people and in terms of kind of monitoring what 0:17:42.040 --> 0:17:43.840 they're saying. And so I think that that's the first 0:17:43.920 --> 0:17:47.360 and most obvious change that that would happen. That would 0:17:47.400 --> 0:17:50.280 definitely happen. I think there's there's a second question about 0:17:50.359 --> 0:17:53.800 monetization and the growth rate and Twitter has been relatively 0:17:53.880 --> 0:17:57.320 modest over the past few years. It just it really 0:17:57.359 --> 0:17:59.360 hasn't grown to this at the same pace of other 0:17:59.560 --> 0:18:04.440 social platforms obviously, like TikTok or Snapchat. And I think 0:18:04.480 --> 0:18:07.760 that there's a question we talked about unlocking the value, uh, 0:18:07.920 --> 0:18:11.040 that there could be a monetization question. There isn't an 0:18:11.080 --> 0:18:14.240 obvious one where this has historically not been done in 0:18:14.359 --> 0:18:18.080 social but just given Eon Musk's first principles approach to 0:18:18.680 --> 0:18:20.920 everything he does, and the first principles means just because 0:18:20.920 --> 0:18:24.160 it hasn't been done before doesn't mean you shouldn't try 0:18:24.240 --> 0:18:26.919 something in the future. And there's the first principles approach 0:18:26.960 --> 0:18:29.800 that he could take with just essentially just charging people 0:18:29.920 --> 0:18:32.040 to be on Twitter. You know, would you pay a 0:18:32.119 --> 0:18:34.359 month to be a dollar per month for example, to 0:18:34.400 --> 0:18:36.160 be on Twitter? But I guesses a lot of people 0:18:36.200 --> 0:18:40.080 would and really kind of stress test to monetization side 0:18:40.119 --> 0:18:42.960 of it, And so that's probably where the biggest value 0:18:43.000 --> 0:18:46.080 could be created. Uh, if it is in fact the 0:18:46.160 --> 0:18:48.560 town square that he describes it as and he's able 0:18:48.600 --> 0:18:53.240 to actually monetize users for it, I could see it 0:18:53.320 --> 0:18:56.720 happened about thirty seconds left here Gene Obviously Elon must 0:18:56.720 --> 0:18:58.720 can afford to buy out Twitter. Do you think you 0:18:58.800 --> 0:19:05.400 can see some competition and from other potential hostile takeover candidates. Um, 0:19:05.800 --> 0:19:10.679 I think less likely that that happens because it's been 0:19:10.800 --> 0:19:13.240 depressed before, and I don't think there was people circling. 0:19:13.280 --> 0:19:15.320 I think you're going to see other emin a activity 0:19:16.080 --> 0:19:18.400 more broadly with this pullback, with a lot of these 0:19:18.560 --> 0:19:22.719 you know, a lot of tech stocks are down. Um, 0:19:23.400 --> 0:19:26.320 Twitter's down a lot, But I don't think it solves 0:19:26.359 --> 0:19:29.639 in that same category of where it's easy pickings for 0:19:30.000 --> 0:19:35.240 a for a bitting more. Thanks for this, Jane. Great 0:19:35.280 --> 0:19:37.600 to have you on with us as we just got 0:19:37.720 --> 0:19:41.320 this news breaking minutes ago, Elon Musk making what he 0:19:41.440 --> 0:19:45.359 calls his best and final offer to buy Twitter, saying 0:19:45.520 --> 0:19:48.479 it has extraordinary potential and he will unlock it, offering 0:19:48.560 --> 0:19:51.800 fifty four dollars in twenty cents a share for the 0:19:51.920 --> 0:19:55.480 social network Twitter in the pre market up nearly eleven 0:19:55.520 --> 0:19:59.159 and a half percent on the news. Stay with us 0:19:59.200 --> 0:20:08.520 for more. Are listening to Bloomberg Daybreak Bloomberg eleven three 0:20:08.520 --> 0:20:10.680 oh weather showers and storms this afternoon with a high 0:20:10.680 --> 0:20:14.680 near eighty degrees. Sunshine returns tomorrow upper sixties will stand. 0:20:14.680 --> 0:20:17.600 They up for sixties Saturday with a few more showers possible. 0:20:17.880 --> 0:20:23.760 Right now fifty nine in Central Park, broadcasting live from 0:20:23.840 --> 0:20:27.959 the Bloomberg Interactive Brokers Studio in New York, Bloomberg Elving 0:20:28.000 --> 0:20:32.560 Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one, 0:20:32.600 --> 0:20:35.600 O six one to San Francisco Bloomberg and M sixty 0:20:35.720 --> 0:20:38.919 to the Country Sirius XM CHO one nineteen and around 0:20:39.000 --> 0:20:42.520 the globe the Bloomberg Business at and Bloomberg Radio dot com. 0:20:42.920 --> 0:20:51.720 This is Bloomberg Daybreak six thirty on Wall Street. Good morning, 0:20:51.760 --> 0:20:54.520 I'm Nathan Hagar and I'm Karen Moscow, and we're just 0:20:54.600 --> 0:20:56.960 about three hours away from the open of US trading. 0:20:57.000 --> 0:20:58.840 It's time for the five things that you need to notice. 0:20:58.840 --> 0:21:02.639 Start your day. Bralty you by ib KR Investment Advisers 0:21:02.640 --> 0:21:05.560 switched to interact your brokers for lowest cost global trading 0:21:05.600 --> 0:21:09.400 and turnkey custody solutions, no ticket charges at no conflicts 0:21:09.480 --> 0:21:12.399 of your interests at ibk R dot com. Slash r 0:21:12.560 --> 0:21:16.720 I a up first breaking and news involving Twitter and 0:21:16.840 --> 0:21:20.640 Elon Musk. The Tesla CEO is launching a hostile takeover 0:21:20.760 --> 0:21:23.960 of the social media company, and Bloomberg's Renada Young joins 0:21:24.040 --> 0:21:26.680 US Live with its developing story. Good Morning Renda, Good 0:21:26.720 --> 0:21:29.760 morning Karen. The world's richest man is offering about forty 0:21:29.840 --> 0:21:33.119 three billion dollars for Twitter. Elon Musk calls it his 0:21:33.280 --> 0:21:36.560 best and final offer, and it represents an eighteen percent 0:21:36.680 --> 0:21:40.120 premium to Twitter's closing price yesterday, and it's thirty seven 0:21:40.200 --> 0:21:43.520 percent above the price before Musk disclosed a stake in 0:21:43.560 --> 0:21:46.720 the company. The Tesla CEO announced the offer of fifty 0:21:46.760 --> 0:21:49.199 four dollars and twenty cents of share in a filing 0:21:49.240 --> 0:21:52.960 with the SEC. He says Twitter has extraordinary potential and 0:21:53.160 --> 0:21:55.960 he will unlock it. Live in New York, I'm gonna 0:21:55.960 --> 0:21:59.480 need a Young Bloomberg day break a, Renita, thanks for 0:21:59.560 --> 0:22:02.239 watching shares of Twitter and early trading. Right now they 0:22:02.240 --> 0:22:06.359 are up about eleven percent. Let's you have to developing 0:22:06.400 --> 0:22:08.520 story out of New York City now, where police arrested 0:22:08.600 --> 0:22:12.000 suspected subway shooter Frank James. Mayor Eric Adams released a 0:22:12.040 --> 0:22:20.960 statement following the arrest. Myself got Mayor Adams isolating after 0:22:21.040 --> 0:22:24.520 a positive COVID test. City Police Commissioner Keyshawn Sewell also 0:22:24.560 --> 0:22:27.960 addressed the arrest. We used every resource at our disposal 0:22:28.359 --> 0:22:32.280 to gather and process significant evidence that directly links Mr 0:22:32.440 --> 0:22:35.080 James to the shooting. We were able to shrink his 0:22:35.200 --> 0:22:38.240 world quickly. There was nowhere left for him to write. 0:22:38.280 --> 0:22:40.919 Police Commissioners. School says the NYPD worked with many law 0:22:41.000 --> 0:22:44.720 enforcement partners to make the arrest. Meantime, and Washington naked Nathan, 0:22:44.800 --> 0:22:48.119 the focus remains on Ukraine. US President Biden announced eight 0:22:48.200 --> 0:22:51.520 hundred million dollars in additional US military aid for Ukraine, 0:22:51.760 --> 0:22:54.920 while Europe continues to provide cash for weapons. It comes 0:22:54.960 --> 0:22:57.600 as Russia warrants of deploying nuclear weapons in and around 0:22:57.600 --> 0:23:01.160 the Baltic siege. Now's if Finland and sweet enjoyed NATO 0:23:01.320 --> 0:23:04.080 the country say they're stepping up considering of doing so 0:23:04.640 --> 0:23:08.119