1 00:00:01,000 --> 00:00:04,800 Speaker 1: Live from the Bloomberg Interactive Burger Studios is Bloomberg Daybreak 2 00:00:04,840 --> 00:00:08,879 Speaker 1: for a Wednesday, April two Coming up. This hour shares 3 00:00:08,920 --> 00:00:13,160 Speaker 1: the Google parent alphabet slump, while Microsoft rallies after earnings. 4 00:00:13,240 --> 00:00:16,279 Speaker 1: European gas prices surge as Russia cuts off supplies to 5 00:00:16,360 --> 00:00:19,560 Speaker 1: Poland and Bulgaria, and the stock market sell off wipes 6 00:00:19,600 --> 00:00:23,080 Speaker 1: away more than thirty billion dollars of Elon Musk's Tesla Well, 7 00:00:23,360 --> 00:00:25,439 Speaker 1: the m t A is trying to get New Yorkers 8 00:00:25,440 --> 00:00:29,000 Speaker 1: to pay their fair share. Plus House Republican leader McCarthy 9 00:00:29,000 --> 00:00:32,440 Speaker 1: would be asked again to testified before the January sixth panel. 10 00:00:32,920 --> 00:00:35,960 Speaker 1: Michael Larnin, I'm John Spanish Our and Sports. The three 11 00:00:36,040 --> 00:00:38,400 Speaker 1: Rizzo hit three home runs and the Yankees went over 12 00:00:38,440 --> 00:00:41,440 Speaker 1: the Orioles. The Mets shutout the Cardinals, the Rangers lost 13 00:00:41,479 --> 00:00:47,400 Speaker 1: to Carolina. That's all strading ahead on Bloomberg Daybreak on 14 00:00:47,520 --> 00:00:51,960 Speaker 1: Bloomberg eleven three on New York, Bloomberg one, Washington, d C, 15 00:00:52,440 --> 00:00:56,080 Speaker 1: Bloomberg one, O six one, Boston, Bloomberg nine sixties and 16 00:00:56,120 --> 00:01:00,000 Speaker 1: Francisco Sirius x M one nineteen and around the World 17 00:01:00,000 --> 00:01:03,680 Speaker 1: Old on Bloomberg Radio Dob Carmen via the Bloomberg Business app. 18 00:01:07,280 --> 00:01:10,680 Speaker 1: Good morning, I'm Nathan Hagar and I'm Karen Moscow. US 19 00:01:10,760 --> 00:01:13,600 Speaker 1: DOT index futures on the rise this morning. We're coming 20 00:01:13,680 --> 00:01:15,360 Speaker 1: up to file one on Wall Street, and we checked 21 00:01:15,400 --> 00:01:18,520 Speaker 1: the markets every fifteen minutes throughout the trading day on Bloomberg. 22 00:01:18,600 --> 00:01:21,560 Speaker 1: Right now, Western P futures up thirty four points, DAL 23 00:01:21,640 --> 00:01:25,319 Speaker 1: futures have three hundred sixteen, NASTAC futures up one hundred sixteen. 24 00:01:25,600 --> 00:01:28,440 Speaker 1: Ten year treasury down ten thirty seconds, yield two point 25 00:01:28,520 --> 00:01:31,240 Speaker 1: seven six percent, and the yield on the two year 26 00:01:31,360 --> 00:01:34,679 Speaker 1: two point five eight percent. Nathan, Karen, we begin this 27 00:01:34,720 --> 00:01:38,160 Speaker 1: morning with market reaction to earnings. Shares of Google parent 28 00:01:38,280 --> 00:01:41,480 Speaker 1: Alphabet are down nearly three percent in early trading. The 29 00:01:41,480 --> 00:01:44,679 Speaker 1: company reported revenue that was lower than estimates, a rare 30 00:01:44,800 --> 00:01:48,280 Speaker 1: miss for Alphabet. Chief financial officer Ruth Parrot says the 31 00:01:48,280 --> 00:01:51,480 Speaker 1: lower results stem from the war in Ukraine. In terms 32 00:01:51,480 --> 00:01:54,800 Speaker 1: of revenues, the most direct impact is the fact that 33 00:01:54,840 --> 00:01:58,480 Speaker 1: we suspended the vast majority of our commercial activities in Russia. 34 00:01:58,640 --> 00:02:02,080 Speaker 1: About one percent of Google revenues were from Russia in 35 00:02:02,960 --> 00:02:06,280 Speaker 1: one and that was primarily from advertising. Alphabet chief financial 36 00:02:06,320 --> 00:02:09,000 Speaker 1: Officer Ruth Parrott also says the company suffered from a 37 00:02:09,040 --> 00:02:12,600 Speaker 1: pullback in YouTube advertising in Europe. Well on the flip side, 38 00:02:12,639 --> 00:02:15,160 Speaker 1: Nathan Shares a Microsoft or up more than five percent 39 00:02:15,240 --> 00:02:18,799 Speaker 1: this morning, sales and earnings topping estimates, fueled by robust 40 00:02:18,880 --> 00:02:23,239 Speaker 1: growth in cloud services. Bloomberg Intelligence senior analysts and Iragrana 41 00:02:23,360 --> 00:02:25,399 Speaker 1: said the company can do well even in a tough 42 00:02:25,440 --> 00:02:30,600 Speaker 1: economic environment. Almost seventy of Microsoft revenue is far more 43 00:02:30,639 --> 00:02:33,800 Speaker 1: resilient and in a recession compared to you know, some 44 00:02:33,840 --> 00:02:36,079 Speaker 1: other companies. Now, lot's of very big number. You know, 45 00:02:36,120 --> 00:02:40,560 Speaker 1: the office portfolio, the Windows, the cloud dynamics. You know, 46 00:02:40,600 --> 00:02:42,880 Speaker 1: even LinkedIn, which should see some slow down, but it 47 00:02:43,000 --> 00:02:46,080 Speaker 1: has been growing in double digit and Bloomberg Intelligence senior 48 00:02:46,120 --> 00:02:48,920 Speaker 1: analysts and Ira Rana says Microsoft is poised to be 49 00:02:48,960 --> 00:02:52,720 Speaker 1: the top company in both the hybrid cloud and metaverse spaces. Now, 50 00:02:52,760 --> 00:02:54,920 Speaker 1: let's look at some other stocks moving this morning. Karen 51 00:02:55,000 --> 00:02:58,440 Speaker 1: shares of Texas Instruments are down about two percent. The 52 00:02:58,520 --> 00:03:01,680 Speaker 1: chip maker says China's on going COVID lockdowns are idling 53 00:03:01,760 --> 00:03:05,160 Speaker 1: factories and slowing shipments. Shares a Visa are up nearly 54 00:03:05,240 --> 00:03:08,079 Speaker 1: five percent. The payments company says spending on its network 55 00:03:08,160 --> 00:03:11,200 Speaker 1: jumped and shares of General Motors are hired by two 56 00:03:11,200 --> 00:03:14,079 Speaker 1: and two thirds percent. The automaker beat estimates for first 57 00:03:14,160 --> 00:03:16,880 Speaker 1: quarter profit. Join us later this morning when we speak 58 00:03:16,919 --> 00:03:19,880 Speaker 1: live with GM CEO Mary Barra. You can catch that 59 00:03:19,919 --> 00:03:24,280 Speaker 1: interview at five am Wall Street Time on Bloomberg Surveillance. Well, Nathan. 60 00:03:24,280 --> 00:03:27,000 Speaker 1: The bevy of Tecker and Ace continues today, with Facebook 61 00:03:27,040 --> 00:03:30,280 Speaker 1: parent Meta leading the way. A preview now from Bloomberg's 62 00:03:30,320 --> 00:03:33,280 Speaker 1: John Tucker. Meta Platforms has been one of the worst 63 00:03:33,280 --> 00:03:36,640 Speaker 1: performing stocks this year, and it could get worse. They're 64 00:03:36,640 --> 00:03:40,800 Speaker 1: facing rising competition and a big obstacle from Apple's iOS 65 00:03:40,920 --> 00:03:45,240 Speaker 1: changes that requires app makers to ask consumers to allow tracking. 66 00:03:45,680 --> 00:03:49,320 Speaker 1: It could cost Meta ten billion dollars this year. Analyss 67 00:03:49,400 --> 00:03:52,000 Speaker 1: on average expect Meta to report first quarter earnings of 68 00:03:52,040 --> 00:03:55,160 Speaker 1: two dollars fifty six cents a share, down from three 69 00:03:55,160 --> 00:03:58,440 Speaker 1: dollars thirty cents a share a year ago. I'm John Tucker, 70 00:03:58,440 --> 00:04:01,520 Speaker 1: Bloomberg Daybreak, All right, and thank you. In Europe, shares 71 00:04:01,560 --> 00:04:04,640 Speaker 1: a Deutsche Bank are down almost seven percent after earnings, 72 00:04:04,680 --> 00:04:07,240 Speaker 1: higher costs off said better than expected performance at its 73 00:04:07,280 --> 00:04:10,080 Speaker 1: investment banking business and shares of Credit Suite so down 74 00:04:10,080 --> 00:04:12,600 Speaker 1: almost one percent. That's after the Swiss Bank reported a 75 00:04:12,680 --> 00:04:15,480 Speaker 1: bigger than expected loss. Well back here in the US, 76 00:04:15,640 --> 00:04:18,159 Speaker 1: Nathan stocks begin the day at a six week low. 77 00:04:18,200 --> 00:04:21,160 Speaker 1: The S and P five hundred lost two point eight percent. Yesterday, well, 78 00:04:21,200 --> 00:04:24,560 Speaker 1: the tank having NASDACK slumped almost four percent. Allen Lance 79 00:04:24,760 --> 00:04:28,480 Speaker 1: is research director at lance global dot com. The pendulum 80 00:04:28,520 --> 00:04:33,920 Speaker 1: always swings from overvalued to undervalued and and it goes 81 00:04:33,960 --> 00:04:36,919 Speaker 1: to extremes. I think that's what we're seeing now. Allen 82 00:04:37,040 --> 00:04:39,919 Speaker 1: Lance of Lance Global says higher interest rates and the 83 00:04:39,920 --> 00:04:43,240 Speaker 1: war in Ukraine are the biggest factors weighing on stocks. Well, 84 00:04:43,240 --> 00:04:46,520 Speaker 1: perhaps nobody was affected by yesterday sell off more Karen 85 00:04:46,680 --> 00:04:49,839 Speaker 1: than the world's richest man. Let's get the details on 86 00:04:49,920 --> 00:04:52,520 Speaker 1: that Live with Bloomberg's rned A Young. Good morning, Rinita, 87 00:04:52,600 --> 00:04:55,720 Speaker 1: Good morning, Nathan. Elon musk steak in Tesla tumbled by 88 00:04:55,760 --> 00:04:58,880 Speaker 1: more than thirty two billion dollars after shares plunged by 89 00:04:58,920 --> 00:05:02,440 Speaker 1: twelve percent. Yes your day. But for the World's richest man, 90 00:05:02,640 --> 00:05:05,640 Speaker 1: this kind of volatility is not new. Sharp declines of 91 00:05:05,720 --> 00:05:08,680 Speaker 1: periodically hit Tesla stock over the past two years, and 92 00:05:08,720 --> 00:05:12,400 Speaker 1: they've been offset by even larger gains. However, this time 93 00:05:12,520 --> 00:05:14,920 Speaker 1: more is that stake. Since Musk is planning to buy 94 00:05:14,920 --> 00:05:17,760 Speaker 1: out Twitter for forty four billion dollars, he can still 95 00:05:17,800 --> 00:05:20,520 Speaker 1: afford it based off of Tuesday's closing price for Tesla, 96 00:05:20,800 --> 00:05:23,719 Speaker 1: but now there's less wiggle room. Meantime, what if the 97 00:05:23,760 --> 00:05:27,120 Speaker 1: deal falls through? An SEC filing shows the Twitter Musk 98 00:05:27,200 --> 00:05:30,320 Speaker 1: deal would include a one billion dollar breakup fee if 99 00:05:30,360 --> 00:05:33,440 Speaker 1: either side backs out. Life in New York. I'm gonna 100 00:05:33,440 --> 00:05:35,680 Speaker 1: need a young Bloomberg daybreak, all right? Reed to thank you? 101 00:05:35,720 --> 00:05:37,640 Speaker 1: Now to the latest on the war in Ukraine and 102 00:05:37,680 --> 00:05:41,000 Speaker 1: European gas prices are surging as much as twenty four percent, 103 00:05:41,040 --> 00:05:43,120 Speaker 1: and that's after Russia made good on a threat to 104 00:05:43,160 --> 00:05:46,480 Speaker 1: cut off supplies to Poland and Bulgaria unless they pay 105 00:05:46,520 --> 00:05:49,960 Speaker 1: in rubles. Meantime, Defense Secretary and Lloyd Austin is promising 106 00:05:50,000 --> 00:05:52,279 Speaker 1: to move heaven and Earth to get Ukraine the weapons 107 00:05:52,279 --> 00:05:55,640 Speaker 1: it needs. Former US Ambassador to Ukraine, John Herb says 108 00:05:55,680 --> 00:05:59,040 Speaker 1: the U s should send fighter jets. Longer arranged drones 109 00:05:59,080 --> 00:06:03,520 Speaker 1: and bombers and tanks really give Ukraine the capability to 110 00:06:03,839 --> 00:06:08,159 Speaker 1: offset Moscow's large advantage in an open that battle, which 111 00:06:08,200 --> 00:06:10,240 Speaker 1: is what they will conduct in the east of Ukraine 112 00:06:10,440 --> 00:06:13,400 Speaker 1: and former Ambassador John herbs is now Senior Director of 113 00:06:13,440 --> 00:06:16,719 Speaker 1: the Atlantic Council's Eurasia Center. He spoke with Our Washington 114 00:06:16,720 --> 00:06:20,080 Speaker 1: corresponded Joe Matthew on Bloomberg's Sound on Catch the Show 115 00:06:20,120 --> 00:06:23,200 Speaker 1: weekdays at five pm Eastern on Bloomberg Radio and turning 116 00:06:23,200 --> 00:06:25,360 Speaker 1: to the economy Now, Karen, We're already just one week 117 00:06:25,400 --> 00:06:28,240 Speaker 1: away from the Fed's lightest policy decision, and a fifty 118 00:06:28,360 --> 00:06:31,560 Speaker 1: basis point rate hike is expected. Former Fed Vice Chair 119 00:06:31,600 --> 00:06:34,000 Speaker 1: Alan Blinder says overall, we need to raise rates by 120 00:06:34,000 --> 00:06:37,160 Speaker 1: at least two hundred basis points from here. Blinder also 121 00:06:37,160 --> 00:06:40,839 Speaker 1: sees the chance of a recession above. Some people are 122 00:06:41,600 --> 00:06:45,479 Speaker 1: raising the shades of Paul Boker uh and the deep 123 00:06:45,520 --> 00:06:48,880 Speaker 1: recession we had then. I think that's very very unlikely, 124 00:06:49,040 --> 00:06:52,640 Speaker 1: extremely unlikely. Former Fed Vice Chair Alan Blinder made the 125 00:06:52,640 --> 00:06:55,240 Speaker 1: comments in an interview on Bloomberg's Balance of Power. Catch 126 00:06:55,320 --> 00:06:59,400 Speaker 1: that show weekdays at noon Eastern on Bloomberg Radio and Television. Well, Nathan, 127 00:06:59,400 --> 00:07:03,400 Speaker 1: another news, the Senate has officially confirmed Lyle Brainerd as 128 00:07:03,560 --> 00:07:06,280 Speaker 1: Vice chair of the Central Bank. The vote was fifty 129 00:07:06,320 --> 00:07:10,119 Speaker 1: two to forty three, with most Republicans opposing BRAINERD because 130 00:07:10,160 --> 00:07:13,320 Speaker 1: of her views on regulation. Again, futures are moving higher 131 00:07:13,360 --> 00:07:16,320 Speaker 1: this morning, and straight ahead your latest local headlines, plus 132 00:07:16,320 --> 00:07:23,560 Speaker 1: a check of sports. And this is Bloomberg ex Turn 133 00:07:23,640 --> 00:07:25,600 Speaker 1: five oh seven on Wall Street, forty nine degrees in 134 00:07:25,640 --> 00:07:28,480 Speaker 1: Central Park in the Northern States closed eastbound between acts 135 00:07:28,520 --> 00:07:30,760 Speaker 1: as forty and forty one. We'll tell you why in traffic. 136 00:07:30,800 --> 00:07:33,280 Speaker 1: Just aad first, Michael Bars here with more on what's 137 00:07:33,280 --> 00:07:35,680 Speaker 1: going on in New York and around the world. Good morning, Michael, 138 00:07:35,760 --> 00:07:39,640 Speaker 1: Good morning Nathan. MT eight Chairman and CEO General Leebers 139 00:07:39,720 --> 00:07:43,600 Speaker 1: says the chronic problem of fair evasion in subways has 140 00:07:43,600 --> 00:07:47,200 Speaker 1: prompted a new initiative in New York. Liber speaking before 141 00:07:47,200 --> 00:07:50,560 Speaker 1: the Association for a Better New York's Power Breakfast, said 142 00:07:50,600 --> 00:07:54,119 Speaker 1: that surging fair evasion threatens our bottom line and also 143 00:07:54,240 --> 00:07:59,160 Speaker 1: threatens our social norms. Liber also says it causes increased crime. 144 00:07:59,480 --> 00:08:02,520 Speaker 1: He says any criminals entered the subway by not paying fares. 145 00:08:03,080 --> 00:08:06,200 Speaker 1: New York City Mayor Eric Adams committed to releasing his 146 00:08:06,320 --> 00:08:10,000 Speaker 1: tax returns and blamed his widely reported refusal to do 147 00:08:10,200 --> 00:08:12,560 Speaker 1: so on, as he put at the arrogance of a 148 00:08:12,640 --> 00:08:16,280 Speaker 1: reporter who asked the question earlier this month. Meanwhile, Mayor 149 00:08:16,280 --> 00:08:20,000 Speaker 1: Adams proposed a nearly one hundred billion dollar budget, pitching 150 00:08:20,320 --> 00:08:23,920 Speaker 1: pandemic recovery with less of the COVID stimulus funds that 151 00:08:24,000 --> 00:08:27,680 Speaker 1: padded previous spending plans. We have always known that our 152 00:08:27,720 --> 00:08:31,080 Speaker 1: city would never be defined, but the tragedy the spirit 153 00:08:31,120 --> 00:08:35,240 Speaker 1: of New York City will always prevail. Mayor Adams said 154 00:08:35,320 --> 00:08:38,400 Speaker 1: he will increase spending for the Department of Correction and 155 00:08:38,559 --> 00:08:42,360 Speaker 1: the New York Police Department. House Republican leader Kevin McCarthy 156 00:08:42,400 --> 00:08:45,280 Speaker 1: will be asked to reconsider his refusal to testify to 157 00:08:45,640 --> 00:08:49,160 Speaker 1: the Congressional committee investigating the January six ryot at the 158 00:08:49,240 --> 00:08:52,640 Speaker 1: US Capitol. That renewal comes nearly a week after a 159 00:08:52,760 --> 00:08:57,200 Speaker 1: laked audio revealed that McCarthy considered urging then President Donald 160 00:08:57,200 --> 00:09:00,360 Speaker 1: Trump to resign after the riot. Currently, can you heard 161 00:09:00,400 --> 00:09:04,720 Speaker 1: telling his Republican colleagues stop attacking other House members by name? 162 00:09:05,640 --> 00:09:09,040 Speaker 1: Is too high, the country is too crazy. I did 163 00:09:09,080 --> 00:09:12,200 Speaker 1: not want to look back and think we caused something 164 00:09:12,280 --> 00:09:16,240 Speaker 1: or we missed something and someone got hurt. Um. I 165 00:09:16,240 --> 00:09:19,319 Speaker 1: don't want to play politics to any of the audio 166 00:09:19,360 --> 00:09:21,600 Speaker 1: tapes were released by the New York Times, and we're 167 00:09:21,600 --> 00:09:24,280 Speaker 1: recorded in the days after the attack on the Capitol. 168 00:09:24,800 --> 00:09:28,920 Speaker 1: SpaceX Screw four launched from the Florida Kennedy Space Center 169 00:09:28,960 --> 00:09:32,520 Speaker 1: this morning and let stop so Falcon. But Freedom Rank 170 00:09:32,760 --> 00:09:36,120 Speaker 1: got the crew, Nassas says. The four crew members are 171 00:09:36,160 --> 00:09:39,600 Speaker 1: heading to the International Space Station. Global News twenty four 172 00:09:39,640 --> 00:09:42,880 Speaker 1: hours a day on air and on Bloomberg Quicktake, powered 173 00:09:42,880 --> 00:09:45,600 Speaker 1: by more than twenty seven hundred journalists and analysts more 174 00:09:45,600 --> 00:09:49,760 Speaker 1: than a dwenty countries. Michael barn this is Bloomberg. Na alright, Michael, 175 00:09:49,760 --> 00:09:56,240 Speaker 1: thank you five nine on Wall Street time for the 176 00:09:56,240 --> 00:09:59,280 Speaker 1: Bloomberg Sports Update. Good morning, John Stashot Morning Nathan. It 177 00:09:59,320 --> 00:10:01,840 Speaker 1: was late in the baseball off season at the Yankees 178 00:10:01,880 --> 00:10:05,160 Speaker 1: cut the deal to bring back Anthony Rizzo. Happy they did. Rizzo, 179 00:10:05,200 --> 00:10:07,719 Speaker 1: with eight home runs, leads the majors twenty times in 180 00:10:07,800 --> 00:10:09,800 Speaker 1: his career. He had hit two home runs in the game. 181 00:10:10,120 --> 00:10:13,080 Speaker 1: He had never hit three at the stadium. Rizzo three 182 00:10:13,160 --> 00:10:15,120 Speaker 1: run homer in the third at ain't two run shot 183 00:10:15,120 --> 00:10:17,920 Speaker 1: in the fifth, solo blast in the eighth. Yankee beat 184 00:10:17,960 --> 00:10:21,000 Speaker 1: the Oriols twelve to eight. Aaron Judge also homer. Joey 185 00:10:21,000 --> 00:10:23,840 Speaker 1: Gallow in his first of the season three run triple 186 00:10:23,920 --> 00:10:26,040 Speaker 1: for Glaver Torres. Yanks have won four in a row. 187 00:10:26,400 --> 00:10:28,840 Speaker 1: They scored twenty two runs in the last two games. 188 00:10:28,840 --> 00:10:31,800 Speaker 1: The Mets keep winning without standing pitching, this time Chris 189 00:10:31,880 --> 00:10:34,760 Speaker 1: Fassett three nothing met winn in St. Louis to improve 190 00:10:34,760 --> 00:10:37,559 Speaker 1: their record of fourteen and five. Mets go for the 191 00:10:37,600 --> 00:10:41,479 Speaker 1: Sweet Afternoon. The Rangers will not be hoisting a Metropolitan 192 00:10:41,520 --> 00:10:44,520 Speaker 1: Division champion banner at the Guarden. Carolina held on to 193 00:10:44,559 --> 00:10:47,199 Speaker 1: win four three to clinch The Rangers will finish in 194 00:10:47,320 --> 00:10:50,320 Speaker 1: second place. Will play either Pittsburgh or Washington next week 195 00:10:50,640 --> 00:10:52,720 Speaker 1: in the start of the Stanley Cup Playoffs NBAF. They 196 00:10:52,720 --> 00:10:55,360 Speaker 1: have three wins by the home team Miami to finish 197 00:10:55,400 --> 00:10:58,520 Speaker 1: the series with Atlanta. Memphis rally beat Minnesota by two. 198 00:10:58,720 --> 00:11:02,199 Speaker 1: Phoenix beat New Orleans Grizzlies and Sun with three two 199 00:11:02,320 --> 00:11:05,319 Speaker 1: series lead. NFL Draft starts tomorrow. The Giants picked fifth 200 00:11:05,440 --> 00:11:08,040 Speaker 1: and seven. It would be a shock if do g 201 00:11:08,240 --> 00:11:11,320 Speaker 1: M Joe Shane does not take an offensive lineman. If 202 00:11:11,360 --> 00:11:13,040 Speaker 1: you want to build it up both sides of the ball, 203 00:11:13,080 --> 00:11:15,079 Speaker 1: built up front, you know, offensive line, you know that 204 00:11:15,280 --> 00:11:17,520 Speaker 1: that's very important, you know, to get our best version 205 00:11:17,520 --> 00:11:20,960 Speaker 1: of say Kwan Daniel entire offense. That to your point, 206 00:11:20,960 --> 00:11:23,040 Speaker 1: that's gonna be very important, you know, to get that right, 207 00:11:23,040 --> 00:11:26,120 Speaker 1: whether it's running the ball or pass protection. So um 208 00:11:26,200 --> 00:11:28,320 Speaker 1: that that will definitely be a priority. Jects in the 209 00:11:28,360 --> 00:11:30,920 Speaker 1: first round pick fourth and ten. John sas that want 210 00:11:30,920 --> 00:11:33,400 Speaker 1: to Bloomberg Sports. Nay, all right, John, thank you. This 211 00:11:33,440 --> 00:11:36,360 Speaker 1: red headline just crossing the Bloomberg terminal. Germany says it 212 00:11:36,480 --> 00:11:39,600 Speaker 1: is meeting now with its EU partners on gas supplies. 213 00:11:39,640 --> 00:11:43,800 Speaker 1: The German Economy Ministry says the EU is concerned about 214 00:11:43,880 --> 00:11:47,080 Speaker 1: Russia cutting off gas flows to Poland and Bulgaria unless 215 00:11:47,080 --> 00:11:49,440 Speaker 1: they pay in roubles. Of course, we will continue following 216 00:11:49,480 --> 00:11:51,600 Speaker 1: the latest developments in the war in Ukraine for you 217 00:11:51,640 --> 00:11:54,760 Speaker 1: throughout the morning here on Bloomberg Daybreak. Right now, SMP 218 00:11:54,880 --> 00:11:57,720 Speaker 1: futures are up thirty five point, staff futures up three 219 00:11:58,000 --> 00:12:00,600 Speaker 1: twenty nine, nast ACT futures up a hundred six team 220 00:12:00,600 --> 00:12:03,000 Speaker 1: after the biggest loss for the NASDAC in nearly a 221 00:12:03,120 --> 00:12:08,439 Speaker 1: year yesterday. This is Bloomberg Bloomberg eleven three oh weather 222 00:12:08,520 --> 00:12:10,480 Speaker 1: mix of sun and clouds today, breezy with a high 223 00:12:10,520 --> 00:12:13,760 Speaker 1: near fifty five degrees, mostly sunny, breezy mid fifties, tomorrow 224 00:12:13,880 --> 00:12:18,120 Speaker 1: upper fifties and sunshine on Friday right now forty nine 225 00:12:18,120 --> 00:12:24,720 Speaker 1: degrees in Central Park markets. Headlines and breaking news twenty 226 00:12:24,760 --> 00:12:27,599 Speaker 1: four hours a day at Bloomberg dot Com. The Bloomberg 227 00:12:27,600 --> 00:12:31,679 Speaker 1: Business Outland at Bloomberg Quick Tape is a Bloomberg Business 228 00:12:31,679 --> 00:12:41,640 Speaker 1: Flash and I'm camerin Moscow. European share steady this morning 229 00:12:41,679 --> 00:12:44,280 Speaker 1: after three days of declines. His investors come to grips 230 00:12:44,280 --> 00:12:47,199 Speaker 1: at the implications of cuts and gas supplies from Russia, 231 00:12:47,320 --> 00:12:51,520 Speaker 1: China's COVID challenges and aggressive the Federal Reserve monetary tightening. 232 00:12:51,640 --> 00:12:54,440 Speaker 1: US DOCK Index futures are also moving higher, and we 233 00:12:54,520 --> 00:12:57,000 Speaker 1: checked the markets every fifteen minutes throughout the trading day. 234 00:12:57,080 --> 00:13:00,240 Speaker 1: On Bloomberg, SNP futures up thirty three points and down 235 00:13:00,280 --> 00:13:02,840 Speaker 1: future is up three hundred thirteen. NASDAC futures up a 236 00:13:02,920 --> 00:13:06,160 Speaker 1: hundred six The decks in Germany is up tenth of uppercent. 237 00:13:06,240 --> 00:13:08,559 Speaker 1: The ten year Treasury down ten thirty seconds, held two 238 00:13:08,600 --> 00:13:11,440 Speaker 1: point seven five percent yield on the two year two 239 00:13:11,480 --> 00:13:14,679 Speaker 1: point five seven percent. Ninemex screwed oil is up nine 240 00:13:14,720 --> 00:13:16,600 Speaker 1: tenths per cent, or eighty nine cents at a hundred 241 00:13:16,600 --> 00:13:19,319 Speaker 1: two dollars fifty nine cents of Barrel Comic School, down 242 00:13:19,360 --> 00:13:22,880 Speaker 1: half percent or eight dollars fifty cents at eighteen announced. 243 00:13:23,200 --> 00:13:25,560 Speaker 1: The euro one point oh five nine eight against the dollar, 244 00:13:25,640 --> 00:13:28,440 Speaker 1: British found one point to five five nine and the 245 00:13:28,520 --> 00:13:31,240 Speaker 1: end is at one twenty seven point nine four Bitcoin 246 00:13:31,360 --> 00:13:34,240 Speaker 1: this morning higher up two percent at thirty eight thousand, 247 00:13:34,240 --> 00:13:37,520 Speaker 1: eight hundred seventy five dollars. That's a Bloomberg business flash. 248 00:13:37,559 --> 00:13:39,720 Speaker 1: Now here's Michael Barrow with more on what's going on 249 00:13:39,760 --> 00:13:42,760 Speaker 1: around the world. Muchael, Good morning, Good morning, Karen. Russia 250 00:13:42,760 --> 00:13:45,360 Speaker 1: has opened a new front and its war over Ukraine, 251 00:13:45,400 --> 00:13:48,920 Speaker 1: deciding to shut off gas to two European Union nations 252 00:13:49,000 --> 00:13:52,600 Speaker 1: that staunchly back Keev comes a day after the U 253 00:13:52,760 --> 00:13:56,520 Speaker 1: S and Western allies vowed to speed more and spend 254 00:13:56,720 --> 00:14:01,480 Speaker 1: better military supplies to Ukraine. A court in military ruled 255 00:14:01,520 --> 00:14:04,880 Speaker 1: me Enmar has convicted the country's former leader, on Sansuchi, 256 00:14:05,040 --> 00:14:08,280 Speaker 1: of corruption and sentenced third to another five years in prison. 257 00:14:08,600 --> 00:14:11,240 Speaker 1: Her supporters and independent legal experts have the cry to 258 00:14:11,360 --> 00:14:15,959 Speaker 1: prosecution as unjust. In MLB, the Yankees beat the Orioles 259 00:14:16,000 --> 00:14:18,760 Speaker 1: twelve three, the Metz Juan, the Nationals and Red Sox lost. 260 00:14:18,800 --> 00:14:21,960 Speaker 1: The Giants beat the A's eight two in the NHL, 261 00:14:22,080 --> 00:14:24,800 Speaker 1: The Islanders beat the Capitols for one. The Devil's lost 262 00:14:24,800 --> 00:14:27,800 Speaker 1: the Bruins. One Global News twenty four hours a day 263 00:14:27,840 --> 00:14:30,880 Speaker 1: on air and on Bloomberg Quick Take, powered by more 264 00:14:30,920 --> 00:14:33,280 Speaker 1: than twenty seven under journalist and analysts more than a 265 00:14:33,360 --> 00:14:36,840 Speaker 1: hundred twenty countries. I'm Michael Barr. This is Bloomberg. Michael. Thanks. 266 00:14:36,840 --> 00:14:39,400 Speaker 1: It's five nineteen on Wall Street Live from the Bloomberg 267 00:14:39,440 --> 00:14:43,240 Speaker 1: Interactive Brokers Studios. This is Bloomberg Daybreak as we focus 268 00:14:43,360 --> 00:14:46,920 Speaker 1: on tech earnings this morning, and it's gotten off for 269 00:14:47,000 --> 00:14:50,600 Speaker 1: the very busy week of tech earnings with a tale 270 00:14:50,600 --> 00:14:53,960 Speaker 1: of two results. Google parent Alphabet came in short of 271 00:14:54,040 --> 00:14:57,960 Speaker 1: Wall Street expectations, while Microsoft is climbing in the pre 272 00:14:58,080 --> 00:15:01,320 Speaker 1: market on better than expect did growth in the cloud. 273 00:15:01,600 --> 00:15:04,840 Speaker 1: From what we're joined by Alex were Bloomberg Quick Take correspondent, 274 00:15:05,160 --> 00:15:08,640 Speaker 1: Tech calumnist for Bloomberg Opinion. Alex, It's good to talk 275 00:15:08,680 --> 00:15:12,360 Speaker 1: with you. Let's start now with Alphabet. What is the 276 00:15:12,440 --> 00:15:14,840 Speaker 1: issue for the Google parent? Is it just the ad 277 00:15:14,920 --> 00:15:18,040 Speaker 1: environment or are Wall Street expectations a little off here? 278 00:15:19,040 --> 00:15:22,400 Speaker 1: It's both really the you know, it still grew at 279 00:15:22,400 --> 00:15:24,240 Speaker 1: a hell of a pace, just not quite the pace 280 00:15:24,400 --> 00:15:27,360 Speaker 1: that everybody or the market at least had expected, And 281 00:15:27,760 --> 00:15:30,080 Speaker 1: the main cause of that seems to have been YouTube, 282 00:15:30,120 --> 00:15:36,320 Speaker 1: where there was a decline that hadn't been anticipated. Part 283 00:15:36,320 --> 00:15:39,960 Speaker 1: of that is to do with the macro environment. As 284 00:15:40,080 --> 00:15:43,840 Speaker 1: economies titan, people, companies start looking at their budgets and 285 00:15:43,840 --> 00:15:45,680 Speaker 1: the first thing that gets hit tends to be the 286 00:15:45,680 --> 00:15:48,880 Speaker 1: marketing budget. It's also on YouTube is really a kind 287 00:15:48,880 --> 00:15:51,920 Speaker 1: of mobile advertising product for a lot when it comes 288 00:15:51,920 --> 00:15:54,200 Speaker 1: a lot of its revenue, and mobile advertising has really 289 00:15:54,200 --> 00:15:57,240 Speaker 1: suffered because of Apple's crackdown on data sharing. Apple has 290 00:15:57,240 --> 00:15:59,640 Speaker 1: made it harder um or made it. They made it 291 00:15:59,640 --> 00:16:02,840 Speaker 1: easier for users to prevent apps from comparing their data 292 00:16:02,960 --> 00:16:05,800 Speaker 1: between different apps. So historically, where you might have seen 293 00:16:05,800 --> 00:16:08,720 Speaker 1: an ad first, say Nike sneakers on YouTube, then you 294 00:16:08,800 --> 00:16:11,760 Speaker 1: might have gone into the Nike app and look considered 295 00:16:11,760 --> 00:16:13,960 Speaker 1: buying them, it was easy to join those dots. That's 296 00:16:13,960 --> 00:16:16,680 Speaker 1: become a lot harder. That means it's harder for Google 297 00:16:16,760 --> 00:16:19,120 Speaker 1: and of course Facebook as well to demonstrate the value 298 00:16:19,160 --> 00:16:21,440 Speaker 1: to brands. And if you can't demonstrate their value, can't 299 00:16:21,480 --> 00:16:23,840 Speaker 1: charge as much. It was also interesting to hear from 300 00:16:23,880 --> 00:16:28,360 Speaker 1: the CFO at Alphabet Ruth Parat talking about the war 301 00:16:28,440 --> 00:16:32,280 Speaker 1: in Ukraine affecting the results as well. How does that 302 00:16:32,360 --> 00:16:35,320 Speaker 1: planet the macro environment. Well, it's to do with, you know, 303 00:16:35,360 --> 00:16:38,480 Speaker 1: consumer confidence, and of course, if consumers aren't opening their 304 00:16:38,560 --> 00:16:42,280 Speaker 1: their wallets to buy goods, that means advertisers see little 305 00:16:42,320 --> 00:16:46,120 Speaker 1: point in spending to try and reach them. That's a 306 00:16:46,160 --> 00:16:48,560 Speaker 1: different story from what we saw twelve months ago, when 307 00:16:49,080 --> 00:16:52,160 Speaker 1: as economy is reopened, as the lockdowns ended, there was 308 00:16:52,200 --> 00:16:55,040 Speaker 1: a real rush from brands to you know, these people. 309 00:16:55,120 --> 00:16:57,560 Speaker 1: Perhaps there were some consumers at least who had managed 310 00:16:57,600 --> 00:16:59,360 Speaker 1: to save some money during lockdowns, all of a sudden 311 00:16:59,360 --> 00:17:01,360 Speaker 1: there was a massive out flow of consumer spending. So 312 00:17:01,480 --> 00:17:04,320 Speaker 1: brands are falling over themselves to ensure that consumer spending 313 00:17:04,320 --> 00:17:06,679 Speaker 1: went to them. It's a little bit different now. People's 314 00:17:06,680 --> 00:17:10,080 Speaker 1: wallets are tightening, people's finances are tightening, of course because 315 00:17:10,080 --> 00:17:13,959 Speaker 1: of inflation. To tie those things together, and you know, 316 00:17:14,080 --> 00:17:16,479 Speaker 1: brands aren't spending at the pace that people have expected. 317 00:17:16,480 --> 00:17:19,879 Speaker 1: They're still spending, but just not at what Wall Street 318 00:17:19,880 --> 00:17:22,600 Speaker 1: had expected. You might expect that some of those macro 319 00:17:22,760 --> 00:17:26,800 Speaker 1: headwinds could affect Microsoft as well, but that company just 320 00:17:26,880 --> 00:17:30,840 Speaker 1: keeps coming along, particularly on the cloud business. And it's 321 00:17:30,880 --> 00:17:33,560 Speaker 1: actually a real lesson for Google because of all for 322 00:17:33,600 --> 00:17:38,399 Speaker 1: alphabet because the three biggest cloud players are Amazon with Aws, 323 00:17:38,480 --> 00:17:41,639 Speaker 1: Microsoft with Azure, and then in a fairly distant third place, Google, 324 00:17:41,680 --> 00:17:44,000 Speaker 1: and Google has been trying to grow that business because 325 00:17:44,080 --> 00:17:46,399 Speaker 1: of what we see at Microsoft that the cloud business 326 00:17:46,440 --> 00:17:50,000 Speaker 1: is resilient and there's a long term contracts. They are 327 00:17:50,320 --> 00:17:54,840 Speaker 1: high gross margin, predictable revenue, and loads of people are 328 00:17:54,880 --> 00:17:58,520 Speaker 1: going into the cloud. Microsoft also benefits because if someone decides, well, 329 00:17:58,600 --> 00:18:00,919 Speaker 1: maybe we don't want a cloud, or we don't want 330 00:18:00,960 --> 00:18:03,440 Speaker 1: to go fully into the cloud, Microsoft has a solution 331 00:18:03,480 --> 00:18:06,520 Speaker 1: for what you call on prem you know, on the premises, 332 00:18:06,680 --> 00:18:09,119 Speaker 1: having your our own service, having your own computers. It 333 00:18:09,160 --> 00:18:12,359 Speaker 1: can supply that stuff too, so it wins on both fronts. 334 00:18:12,440 --> 00:18:15,760 Speaker 1: And clearly the cloud business people are realizing the hybrid 335 00:18:15,800 --> 00:18:17,840 Speaker 1: work is a reality something a lot of people doing. 336 00:18:17,840 --> 00:18:21,720 Speaker 1: They need both on premises and cloud solutions. Microsoft offers both. 337 00:18:22,560 --> 00:18:26,320 Speaker 1: Is it difficult Alex to sort of gauge the outlook 338 00:18:26,359 --> 00:18:31,240 Speaker 1: for either of these companies given what's happening with inflation, 339 00:18:31,320 --> 00:18:34,240 Speaker 1: what's happening with the war and and even potentially COVID 340 00:18:34,760 --> 00:18:37,440 Speaker 1: in our last minute here, it is a lot easier 341 00:18:37,440 --> 00:18:38,639 Speaker 1: to do it from Microsoft. This is one of the 342 00:18:38,640 --> 00:18:40,359 Speaker 1: things we're seeing with tech is this whole you know, 343 00:18:40,400 --> 00:18:43,359 Speaker 1: the the fang narrative. There are differences between these companies 344 00:18:43,359 --> 00:18:46,600 Speaker 1: and people are becoming more sophisticated and realizing that Microsoft 345 00:18:46,640 --> 00:18:48,360 Speaker 1: a lot easier to protect where things are going. They're 346 00:18:48,359 --> 00:18:50,919 Speaker 1: making some confident bets on the metaverse. Think about the 347 00:18:51,119 --> 00:18:53,960 Speaker 1: eighty plus billion dollar deal for Activision. Google a little 348 00:18:53,960 --> 00:18:57,240 Speaker 1: bit trickier because they're way more exposed to the vicissitudes 349 00:18:57,359 --> 00:19:00,320 Speaker 1: of the ad market and therefore the global economy. All right, 350 00:19:00,359 --> 00:19:02,880 Speaker 1: Alex Webb, as always great to get your thoughts, especially 351 00:19:02,880 --> 00:19:05,840 Speaker 1: on a big day to kick off tech earnings. Uh, 352 00:19:06,400 --> 00:19:09,760 Speaker 1: very busy week for tech earnings. Alex Webb, Bloomberg Quick 353 00:19:09,800 --> 00:19:13,640 Speaker 1: Take correspondent, tech calumnist for Bloomberg Opinion. Also looking forward 354 00:19:13,640 --> 00:19:16,080 Speaker 1: to talking to Alex next hour on our Bloomberg Big 355 00:19:16,119 --> 00:19:20,160 Speaker 1: Take story. Elon Musk's buy out of Twitter forty four 356 00:19:20,320 --> 00:19:23,560 Speaker 1: billion dollar bid for the future of free speech could 357 00:19:23,560 --> 00:19:26,720 Speaker 1: be a very interesting conversation coming up later on Bloomberg 358 00:19:26,760 --> 00:19:31,199 Speaker 1: day Break. Looking at shares of the two big megacap 359 00:19:31,280 --> 00:19:34,320 Speaker 1: names that reported earnings yesterday, Microsoft up five and a 360 00:19:34,440 --> 00:19:38,280 Speaker 1: quarter percent in the pre market, while parent or a 361 00:19:38,320 --> 00:19:41,959 Speaker 1: Google parent alphabet is lower by about two and a 362 00:19:41,960 --> 00:19:44,760 Speaker 1: half percent. As far as the broader market, futures are 363 00:19:44,840 --> 00:19:47,840 Speaker 1: higher after the big sell off yesterday, SMP futures up 364 00:19:47,840 --> 00:19:50,600 Speaker 1: thirty six points down futures up three and thirty seven, 365 00:19:50,920 --> 00:19:54,240 Speaker 1: NASTAC futures higher by a hundred twenty points. The tenure 366 00:19:54,240 --> 00:19:57,640 Speaker 1: Treasury is down twelve thirty seconds, the yield two point 367 00:19:57,680 --> 00:19:59,680 Speaker 1: seven six percent, and the yield on the two year 368 00:19:59,760 --> 00:20:03,440 Speaker 1: right now two point five eight. You're listening to Bloomberg 369 00:20:03,520 --> 00:20:09,600 Speaker 1: Daybreak Bloomberg eleven three oh Weather mix of sun and 370 00:20:09,640 --> 00:20:12,399 Speaker 1: clouds Today breezy, mid fifties for highs will be near 371 00:20:12,480 --> 00:20:16,320 Speaker 1: fifty five, mostly sunny and breezy. Tomorrow, sunshine upper fifties, 372 00:20:16,359 --> 00:20:23,320 Speaker 1: maybe sixty by Friday, currently forty nine degrees. Broadcasting live 373 00:20:23,520 --> 00:20:27,480 Speaker 1: from the Bloomberg Interactive Broker Studio in New York. Bloomberg 374 00:20:27,440 --> 00:20:32,280 Speaker 1: evom Freedom to Washington, d C. Bloomberg to Boston, Bloomberg 375 00:20:32,320 --> 00:20:35,679 Speaker 1: one O six one to San Francisco, Bloomberg sixteen to 376 00:20:35,760 --> 00:20:38,399 Speaker 1: the Country Sirius XM to the one nine team and 377 00:20:38,480 --> 00:20:41,840 Speaker 1: around the globe the Bloomberg Business app in Bloomberg Radio 378 00:20:41,960 --> 00:20:51,320 Speaker 1: dot com. This is Bloomberg Daybreak. It's thirty on Wall Street. 379 00:20:51,320 --> 00:20:54,320 Speaker 1: Good morning. I'm Nathan Hagar and I'm Karen Moscow and 380 00:20:54,359 --> 00:20:56,800 Speaker 1: we are just about four hours away from the open 381 00:20:56,840 --> 00:20:59,240 Speaker 1: of US trading. Let's get you update on the news 382 00:20:59,280 --> 00:21:02,040 Speaker 1: you need to know at this hour. After its first 383 00:21:02,119 --> 00:21:05,440 Speaker 1: quarter earnings miss yesterday, shares of Google parent Alphabet are 384 00:21:05,720 --> 00:21:08,920 Speaker 1: down more than two and a half percent in early trading. 385 00:21:08,960 --> 00:21:12,439 Speaker 1: Mandates Singh of Bloomberg Intelligence points to slower and sales 386 00:21:12,440 --> 00:21:16,480 Speaker 1: in a week performance by YouTube. The search business continues 387 00:21:16,560 --> 00:21:20,480 Speaker 1: to outperform here and that reflects in both their coursearch 388 00:21:20,560 --> 00:21:24,520 Speaker 1: and Google network segment. What has missed is the YouTube 389 00:21:24,920 --> 00:21:27,320 Speaker 1: segment as well as the Google other where you have 390 00:21:27,400 --> 00:21:30,440 Speaker 1: the app store revenue. So those were the two that miss. 391 00:21:30,680 --> 00:21:34,840 Speaker 1: Bloomberg Intelligence analyst Mandeep Singh says is spending commercial activities 392 00:21:34,840 --> 00:21:38,639 Speaker 1: from Russia also affected Alphabets earnings. Meanwhile, sales and earnings 393 00:21:38,640 --> 00:21:42,040 Speaker 1: from Microsoft beat estimates. Microsoft is up five and a 394 00:21:42,080 --> 00:21:44,640 Speaker 1: half percent ahead of the opening bell Well. Facebook parent 395 00:21:44,680 --> 00:21:47,520 Speaker 1: company Meta reports today after the close, Karen and Bloomberg 396 00:21:47,600 --> 00:21:50,439 Speaker 1: Intelligence says near term revenue growth could come in at 397 00:21:50,480 --> 00:21:53,679 Speaker 1: the low end of expectations. Nathan on Wall Street stocks 398 00:21:53,760 --> 00:21:56,040 Speaker 1: begin the day at a six week low. The S 399 00:21:56,119 --> 00:21:58,680 Speaker 1: and P five hundred lost two point eight percent yesterday, 400 00:21:58,680 --> 00:22:01,760 Speaker 1: while the tech heavy Nasdack's slumped almost four percent. Well, 401 00:22:01,800 --> 00:22:04,640 Speaker 1: perhaps nobody was affected more by that sell off yesterday 402 00:22:04,640 --> 00:22:07,640 Speaker 1: than the World's Richest Man and Bloomberg Jrnida Young joins 403 00:22:07,720 --> 00:22:09,800 Speaker 1: US Live with that story. Good morning, Granita, Good morning, 404 00:22:09,880 --> 00:22:12,800 Speaker 1: Nathan Elon Musks Steak and Tesla tumbled by more than 405 00:22:12,840 --> 00:22:17,080 Speaker 1: thirty two billion dollars after shares plunged by twelve percent yesterday. 406 00:22:17,400 --> 00:22:20,360 Speaker 1: But for the World's Richest Man, this kind of volatility 407 00:22:20,440 --> 00:22:23,879 Speaker 1: is not new. Sharp declines have periodically hit Tesla stock 408 00:22:23,920 --> 00:22:26,440 Speaker 1: over the past two years, and they've been offset by 409 00:22:26,480 --> 00:22:30,280 Speaker 1: even larger gains. However, this time more is at Steak. 410 00:22:30,600 --> 00:22:33,000 Speaker 1: Since Musk is planning to buy out Twitter for forty 411 00:22:33,000 --> 00:22:35,800 Speaker 1: four billion dollars. He can still afford it based off 412 00:22:35,800 --> 00:22:40,000 Speaker 1: of Tuesday's closing price, but now there's less wiggle room. Meantime, 413 00:22:40,119 --> 00:22:43,080 Speaker 1: what if the deal falls through and SEC filing shows 414 00:22:43,119 --> 00:22:46,480 Speaker 1: the Twitter Musk deal would include a one billion dollar 415 00:22:46,560 --> 00:22:50,320 Speaker 1: breakup fee if either side backs out. Live in New York. 416 00:22:50,359 --> 00:22:53,159 Speaker 1: I'm Ranita Young Bloomberg day Break, All right, Grania, thank you, 417 00:22:53,200 --> 00:22:56,800 Speaker 1: we'll oversee. Is European gas prices surged over twenty percent 418 00:22:56,920 --> 00:23:00,919 Speaker 1: after Russia stopped natural gas flows to Poland in Bulgaria. 419 00:23:01,119 --> 00:23:04,160 Speaker 1: Former Ambassador to Ukraine John Herbs says it comes as 420 00:23:04,240 --> 00:23:08,400 Speaker 1: Russia struggles to achieve its goals in Ukraine. Russia is losing. 421 00:23:08,800 --> 00:23:12,280 Speaker 1: I think many smart people in Moscow understand this. I'm 422 00:23:12,320 --> 00:23:15,600 Speaker 1: not sure that Putin understands this. Former Ambassador to Ukraine 423 00:23:15,640 --> 00:23:18,919 Speaker 1: John Herbs has spoke with our Washington corresponded Joe Matthew 424 00:23:19,000 --> 00:23:22,200 Speaker 1: on Bloomberg Sound on Catch the show weekdays at five 425 00:23:22,200 --> 00:23:26,080 Speaker 1: pm Eastern on Bloomberg Radio again, SMP futures are up 426 00:23:26,080 --> 00:23:28,760 Speaker 1: thirty five points this morning. Straight Ahead. We have your 427 00:23:28,840 --> 00:23:32,520 Speaker 1: latest local headlines, plus a check of sports. And this 428 00:23:33,280 --> 00:23:40,240 Speaker 1: is Bloomberg. Thanks Carring its five on Wall Street, forty 429 00:23:40,320 --> 00:23:42,800 Speaker 1: nine degrees east found Northern States closed in Melville and 430 00:23:42,800 --> 00:23:45,040 Speaker 1: Michael Barr has more from New York and around the world. 431 00:23:45,080 --> 00:23:47,600 Speaker 1: Michael Nathan, thank you very much. Mt A Chairman and 432 00:23:47,760 --> 00:23:51,640 Speaker 1: CEO General Lieber says the chronic problem of fair evasion 433 00:23:51,680 --> 00:23:55,520 Speaker 1: has prompted a new initiative in New York. Lieber, speaking 434 00:23:55,560 --> 00:23:58,760 Speaker 1: before the Association for a Better New York Power Breakfast, 435 00:23:59,160 --> 00:24:02,919 Speaker 1: said that surging fair evasion threatens our bottom line and 436 00:24:02,960 --> 00:24:07,200 Speaker 1: also threatens our social norms. Lieber also says it causes 437 00:24:07,280 --> 00:24:10,520 Speaker 1: increased crime. He says many criminals enter the subway but 438 00:24:10,600 --> 00:24:14,119 Speaker 1: not paying fairs. House Republican leader Kevin McCarthy will be 439 00:24:14,119 --> 00:24:17,639 Speaker 1: asked to reconsider his refusal to testify to the Congressional 440 00:24:17,640 --> 00:24:21,040 Speaker 1: committee investigating the January six riot at the US Capitol. 441 00:24:21,440 --> 00:24:24,160 Speaker 1: It comes as there are more recordings of McCarthy four 442 00:24:24,240 --> 00:24:27,920 Speaker 1: days after the riot. Audio obtained by The New York 443 00:24:27,960 --> 00:24:31,840 Speaker 1: Times shows that McCarthy is worried that some of his 444 00:24:31,920 --> 00:24:35,160 Speaker 1: own colleagues, Republican members of Congress, are fueling the violence. 445 00:24:35,359 --> 00:24:41,880 Speaker 1: McCarthy called out GOP Congressman At Gates, calling people's names out, 446 00:24:41,920 --> 00:24:46,880 Speaker 1: saying an anti Trump in this type of atmosphere, um 447 00:24:46,960 --> 00:24:49,200 Speaker 1: in some of the other places. This is this is 448 00:24:49,280 --> 00:24:53,639 Speaker 1: serious stuff people are doing that has to stop. McCarthy says, 449 00:24:53,840 --> 00:24:57,600 Speaker 1: Gates has to knock off the incendiary rhetoric. Vice President 450 00:24:57,640 --> 00:25:00,359 Speaker 1: Kamala Harris has tested positive for COVID night seen. The 451 00:25:00,359 --> 00:25:03,680 Speaker 1: White House says neither President Joe Biden nor First Lady 452 00:25:03,760 --> 00:25:06,399 Speaker 1: Jill Biden were considered a close contact of Evers in 453 00:25:06,440 --> 00:25:09,879 Speaker 1: recent days. A new survey shows it's getting even harder 454 00:25:09,920 --> 00:25:13,280 Speaker 1: for many Americans to achieve a living wage. According to 455 00:25:13,320 --> 00:25:17,040 Speaker 1: the latest County Health rankings, women, particularly yows of color, 456 00:25:17,320 --> 00:25:21,159 Speaker 1: earned eighty cents less or eight cents or less on 457 00:25:21,240 --> 00:25:25,040 Speaker 1: average for every dollar men earned. Co director Dr Sherry 458 00:25:25,119 --> 00:25:28,840 Speaker 1: Johnson says childcare costs are among the challenges that keep 459 00:25:28,880 --> 00:25:33,160 Speaker 1: many families from getting ahead. On average, a family with 460 00:25:33,240 --> 00:25:37,160 Speaker 1: two children is paying about twenty percent of their income 461 00:25:37,320 --> 00:25:42,280 Speaker 1: on childcare expenses. The federal government recommends that people spend 462 00:25:42,760 --> 00:25:46,840 Speaker 1: seven percent of their total income on childcare expenses. Dr 463 00:25:46,920 --> 00:25:51,000 Speaker 1: Johnson wrote in the latest study title Troubling Issues, teachers 464 00:25:51,040 --> 00:25:54,320 Speaker 1: average salaries have dropped to the lowest level in at 465 00:25:54,359 --> 00:25:57,879 Speaker 1: least a decade, according to the National Education Association, with 466 00:25:57,880 --> 00:26:00,720 Speaker 1: the starting salary for teachers in the US is a 467 00:26:00,760 --> 00:26:03,960 Speaker 1: four percent decrease from the prior year. Global News twenty 468 00:26:03,960 --> 00:26:06,400 Speaker 1: four hours a day on air and on Bloomberg Quick Take, 469 00:26:06,440 --> 00:26:09,520 Speaker 1: powered by more than under journalist and analysts in more 470 00:26:09,520 --> 00:26:12,120 Speaker 1: than a twenty countries. And Michael bar this is Bloomberg Nather. 471 00:26:12,160 --> 00:26:19,200 Speaker 1: Thank you, Michael on all Street, John stan Showers the 472 00:26:19,200 --> 00:26:22,439 Speaker 1: Bloomberg Sports Update, Thanks Nathan. Another wind to continue this 473 00:26:22,480 --> 00:26:24,399 Speaker 1: hot start to the Met season. Not quite the drama 474 00:26:24,440 --> 00:26:26,360 Speaker 1: of Monday night in St. Louis when they scored five 475 00:26:26,440 --> 00:26:28,320 Speaker 1: runs with two outs of the ninth inning, and this 476 00:26:28,359 --> 00:26:31,040 Speaker 1: one more routine three nothing over the Cardinals. Chris Bassett 477 00:26:31,080 --> 00:26:33,359 Speaker 1: with his third win team with three relievers on a 478 00:26:33,400 --> 00:26:36,440 Speaker 1: three hit shutout. So now fourteen and five and win 479 00:26:36,600 --> 00:26:38,919 Speaker 1: or lose This afternoon, the Met Deberny won the series 480 00:26:38,960 --> 00:26:42,320 Speaker 1: and they start the season by winning all six series 481 00:26:42,400 --> 00:26:45,520 Speaker 1: they've played. That's only happened once before in franchise history. 482 00:26:45,560 --> 00:26:48,200 Speaker 1: The Stadium Yankees with the Oriols twelve to eight. Five 483 00:26:48,320 --> 00:26:51,040 Speaker 1: Yankee home runs, three by Anthony Rizzo, who leads the 484 00:26:51,080 --> 00:26:53,800 Speaker 1: majors with eight. He captured his first career three home 485 00:26:53,880 --> 00:26:56,320 Speaker 1: run game, going back to back with Aaron Judge in 486 00:26:56,320 --> 00:26:58,440 Speaker 1: the eighth named Joey Gallo at his first home or 487 00:26:58,440 --> 00:27:00,720 Speaker 1: of the season. Labor Torres with a we run triple. 488 00:27:01,040 --> 00:27:03,920 Speaker 1: Four straight wins for the Yanks, two runs scored the 489 00:27:04,000 --> 00:27:11,760 Speaker 1: last two games. Manager's Aaron Boone making some better swing decisions. Um, 490 00:27:11,840 --> 00:27:15,359 Speaker 1: you know, guys settling in a little bit and uh, 491 00:27:16,080 --> 00:27:20,840 Speaker 1: you know, not always chasing that result, chasing win the pitch, 492 00:27:21,000 --> 00:27:24,520 Speaker 1: have a good at bat, you know. Um. And we're 493 00:27:24,560 --> 00:27:27,440 Speaker 1: seeing that more now Earlier today something the Yankees fought 494 00:27:27,440 --> 00:27:29,639 Speaker 1: against the release of a letter sent to them by 495 00:27:29,720 --> 00:27:33,320 Speaker 1: MLB regarding stealing signs back in two thousand, fifteen and sixteen. 496 00:27:33,680 --> 00:27:36,480 Speaker 1: MLB found then the Yanks illegally made phone calls from 497 00:27:36,480 --> 00:27:38,760 Speaker 1: the video room to the dugout. It did not, as 498 00:27:38,800 --> 00:27:41,679 Speaker 1: it been alleged, use yes network cameras. It was not 499 00:27:41,760 --> 00:27:45,119 Speaker 1: done in real time like the Astros scandal at the Garden. 500 00:27:45,200 --> 00:27:48,320 Speaker 1: Carolina clips the Metropolitan Division beating the Rangers four to 501 00:27:48,440 --> 00:27:50,840 Speaker 1: three in the lost PRIs Prider is fifty second goal 502 00:27:50,960 --> 00:27:55,400 Speaker 1: NBA Playoffs home wins for Miami, Memphis and Phoenix. John 503 00:27:55,400 --> 00:27:59,400 Speaker 1: Stashward Blumberg Sports thanks John seven on Wall Street Time 504 00:27:59,400 --> 00:28:03,119 Speaker 1: for the Tri State Business Report with Bloomberg's Cory. Manhattan 505 00:28:03,160 --> 00:28:07,760 Speaker 1: renters faced skyrocketing costs in the first quarter. Median rents 506 00:28:07,840 --> 00:28:10,639 Speaker 1: rose from a year earlier. Prime sections of the borough 507 00:28:10,720 --> 00:28:15,720 Speaker 1: saw increases of or more. According to Street Easy, renters 508 00:28:15,760 --> 00:28:18,760 Speaker 1: who left the city's pricest borrow during the pandemic or 509 00:28:18,800 --> 00:28:22,320 Speaker 1: returning others are searching for new apartments in the city. 510 00:28:22,680 --> 00:28:26,520 Speaker 1: Times Square investors are doubling down on tourism and entertainment. 511 00:28:26,960 --> 00:28:29,840 Speaker 1: A new hotel with an outdoor pool overlooking the theater 512 00:28:29,960 --> 00:28:33,560 Speaker 1: district has been opening in stages since last year. Another 513 00:28:33,640 --> 00:28:36,119 Speaker 1: hotel with a concert stage is supposed to open in 514 00:28:36,920 --> 00:28:40,640 Speaker 1: three According to Dow Jones, a developer has proposed building 515 00:28:40,640 --> 00:28:45,520 Speaker 1: Manhattan's first casino in the entertainment district. New York's Metropolitan 516 00:28:45,560 --> 00:28:48,920 Speaker 1: Opera and the Polish National Opera will organize an orchestra 517 00:28:49,000 --> 00:28:53,200 Speaker 1: tour this summer. It will include Ukrainian musicians and will 518 00:28:53,280 --> 00:28:57,240 Speaker 1: raise funds for that nation's artists. Drew Bloomberg Try State 519 00:28:57,280 --> 00:29:00,520 Speaker 1: Business Report. I'm Ed Corey. Thanks. That's thirty eight on 520 00:29:00,520 --> 00:29:02,320 Speaker 1: Wall Street. Time to check in with our global news 521 00:29:02,320 --> 00:29:04,120 Speaker 1: team for the top stories heard on our three hundred 522 00:29:04,160 --> 00:29:10,200 Speaker 1: affiliate radio stations around the world. I'm Steve Totascan on 523 00:29:10,400 --> 00:29:14,280 Speaker 1: KMX in Los Angeles. We're talking about the Chell reportedly 524 00:29:14,360 --> 00:29:17,240 Speaker 1: and talks to sell the toymaker and take it private. 525 00:29:17,400 --> 00:29:21,440 Speaker 1: I'm Cornitaaho on Carol DM Dallas, Tyson Boots as a surgeon. 526 00:29:21,520 --> 00:29:24,640 Speaker 1: Beef prices is being driven by market forces. I'm Joan 527 00:29:24,720 --> 00:29:28,200 Speaker 1: Donnager telling k CBS listeners in San Francisco. All eyes 528 00:29:28,240 --> 00:29:32,360 Speaker 1: are on Facebook today after Google's parents disappointing earnings report. 529 00:29:32,520 --> 00:29:35,280 Speaker 1: I'm callin hit called Bloomberg DAB Digital Medium in Lonto. 530 00:29:35,320 --> 00:29:39,000 Speaker 1: We're reporting what MPs on the Public Accounts Committee slam as. 531 00:29:39,160 --> 00:29:42,960 Speaker 1: I'm watering levels of food from the government's pandemic business 532 00:29:43,000 --> 00:29:47,160 Speaker 1: loans program. I'm Ed Corey on w w J and Detroit. 533 00:29:47,280 --> 00:29:51,160 Speaker 1: I'm reporting Toyota is tompted sales target for the recently 534 00:29:51,240 --> 00:29:53,560 Speaker 1: ended FIS school year. And those some of the stories 535 00:29:53,560 --> 00:29:56,680 Speaker 1: our Bloomberg journalists and analysts are working on at five 536 00:29:56,800 --> 00:29:59,880 Speaker 1: thirty nine on Wall Street. The following is an editor 537 00:30:00,040 --> 00:30:04,520 Speaker 1: ill from Bloomberg Opinion. This sedatorial was written by the 538 00:30:04,520 --> 00:30:09,440 Speaker 1: Bloomberg Editorial Board. Climate change is making the world hotter 539 00:30:09,920 --> 00:30:15,400 Speaker 1: and more volatile. Extreme weather has worsened conflicts and created 540 00:30:15,480 --> 00:30:19,840 Speaker 1: humanitarian emergencies around the globe, often in countries that are 541 00:30:20,000 --> 00:30:23,320 Speaker 1: ill equipped to deal with them. By wreaking havoc on 542 00:30:23,480 --> 00:30:29,680 Speaker 1: infrastructure and equipment. Climate change also threatens US military readiness, 543 00:30:29,720 --> 00:30:33,800 Speaker 1: just as new geopolitical risks are emerging. The good news 544 00:30:33,960 --> 00:30:37,280 Speaker 1: is that the goals of fighting climate change and advancing 545 00:30:37,400 --> 00:30:43,560 Speaker 1: national security are mutually reinforcing. Prudent investments in adaptation and 546 00:30:43,680 --> 00:30:49,280 Speaker 1: green technologies would boost resilience, reduce vulnerabilities, and help the 547 00:30:49,360 --> 00:30:53,280 Speaker 1: US maintain its edge in the battlefield, all while paring 548 00:30:53,320 --> 00:30:58,240 Speaker 1: down dangerous greenhouse gas emissions. Climate change is already making 549 00:30:58,240 --> 00:31:02,600 Speaker 1: the military's job hotterer. Prudent green spending can help bolstore 550 00:31:02,600 --> 00:31:07,760 Speaker 1: America's national security and the planets to This editorial was 551 00:31:07,760 --> 00:31:11,560 Speaker 1: written by the Bloomberg Editorial Board. For more Bloomberg opinion, 552 00:31:11,800 --> 00:31:15,400 Speaker 1: please go to Bloomberg dot com, slash Opinion or ope 553 00:31:15,640 --> 00:31:19,120 Speaker 1: I n Go on the Bloomberg Terminal. This has been 554 00:31:19,160 --> 00:31:25,040 Speaker 1: Bloomberg Opinion. Listen for Bloomberg opinion editorials every weekday at 555 00:31:25,040 --> 00:31:27,960 Speaker 1: this time. Terminal customers can read more at op I 556 00:31:28,160 --> 00:31:31,080 Speaker 1: n go. Right now forty eight degrees in Central Park, 557 00:31:31,120 --> 00:31:37,440 Speaker 1: We're headed up to the mid fifties and under breezy conditions. Markets, 558 00:31:37,520 --> 00:31:40,600 Speaker 1: headlines and breaking news twenty four hours a day at 559 00:31:40,600 --> 00:31:44,520 Speaker 1: Bloomberg dot Com, The Bloomberg Business at and at Bloomberg quicktake, 560 00:31:44,800 --> 00:31:53,960 Speaker 1: This is a Bloomberg business flash and I'm Karen Moscow 561 00:31:54,000 --> 00:31:57,080 Speaker 1: and stocks are rising alongside US stock index futures as 562 00:31:57,120 --> 00:31:59,800 Speaker 1: if buyers emerged to take advantage of the lowest levels 563 00:31:59,800 --> 00:32:02,000 Speaker 1: and six weeks putting their faith in the power of 564 00:32:02,040 --> 00:32:05,080 Speaker 1: earnings to keep glumbo equities aloft. You check the markets 565 00:32:05,080 --> 00:32:07,800 Speaker 1: every fifteen minutes throughout the trading day. On bloombergues and 566 00:32:07,840 --> 00:32:10,440 Speaker 1: P future is up thirty four points down futures have 567 00:32:10,480 --> 00:32:13,160 Speaker 1: three hundred twenty five NASDACK futures have a hundred four 568 00:32:13,320 --> 00:32:15,680 Speaker 1: the decks. In Germany's up to tenths of upper set 569 00:32:15,880 --> 00:32:18,480 Speaker 1: ten year treasury down twelve thirty seconds YELD two point 570 00:32:18,560 --> 00:32:20,760 Speaker 1: seven six percent. They yield on the two year two 571 00:32:20,800 --> 00:32:23,680 Speaker 1: point five eight percent. Nim X Screwed oil is up 572 00:32:23,680 --> 00:32:25,720 Speaker 1: a third of upper cent, up thirty four cents, and 573 00:32:25,760 --> 00:32:28,440 Speaker 1: a hundred two dollars four cents of barrel Commic school 574 00:32:28,560 --> 00:32:30,760 Speaker 1: is down three towns percent or five dollars forty cents 575 00:32:30,760 --> 00:32:34,640 Speaker 1: at eighteen seventy announce, the Euro one point six two 576 00:32:34,760 --> 00:32:37,120 Speaker 1: zero against the dollar, British pound one point to five 577 00:32:37,200 --> 00:32:39,680 Speaker 1: nine seven and the en at one twenty seven point 578 00:32:39,760 --> 00:32:41,960 Speaker 1: eight five and bitcoin is up to in a third 579 00:32:41,960 --> 00:32:45,280 Speaker 1: percent at thirty nine thousand, ten dollars. And that's a 580 00:32:45,320 --> 00:32:47,960 Speaker 1: Bloomberg business flash. Now here's Michael Barr with more on 581 00:32:48,040 --> 00:32:50,760 Speaker 1: what's going on around the world. Michael Darren, thank you 582 00:32:50,840 --> 00:32:54,000 Speaker 1: very much. Russia's gas Broms says that it's holded gas 583 00:32:54,080 --> 00:32:57,640 Speaker 1: flows to Poland and Bulgaria Russia's as it will keep 584 00:32:57,680 --> 00:33:00,280 Speaker 1: the supplies turned off until the two countries at three 585 00:33:00,560 --> 00:33:04,920 Speaker 1: to Moscow's demand, paying for the fuel in rubles. Vice 586 00:33:04,960 --> 00:33:08,880 Speaker 1: President Kamala Harris has tested positive for COVID. Health experts 587 00:33:08,920 --> 00:33:11,600 Speaker 1: say more than a half the country has had the 588 00:33:11,720 --> 00:33:14,920 Speaker 1: virus at some point in the last two years. In MLB, 589 00:33:15,080 --> 00:33:17,640 Speaker 1: the Yankees beat the Orioles twelve three, the Mets one, 590 00:33:17,680 --> 00:33:20,440 Speaker 1: the Nationals and Red Sox lost. The Giants beat the 591 00:33:20,480 --> 00:33:23,400 Speaker 1: A's a two. In the NHL, the Rangers lost to 592 00:33:23,400 --> 00:33:27,680 Speaker 1: the Hurricanes. Carolina clinched the Metropolitan Division. The Islanders beat 593 00:33:27,680 --> 00:33:30,200 Speaker 1: the Capitals for one. The Devil's lost the Bruins one, 594 00:33:30,280 --> 00:33:33,560 Speaker 1: clinching the playoff. Spot Global News twenty four hours a 595 00:33:33,640 --> 00:33:36,760 Speaker 1: day on here and on Bloomberg Quick Tank, powered by 596 00:33:36,800 --> 00:33:39,320 Speaker 1: more than twenty seven hundred journalists and analysts more than 597 00:33:39,360 --> 00:33:41,960 Speaker 1: a hundred twenty countries. How Michael Barr, this is Bloomberg. 598 00:33:42,040 --> 00:33:44,000 Speaker 1: Nathan Okay, Michael, thank you. We're coming up to five 599 00:33:44,040 --> 00:33:46,600 Speaker 1: forty nine on Wall Street Live from the Bloomberg Interacted 600 00:33:46,640 --> 00:33:49,760 Speaker 1: Brokers Studios. This is Bloomberg Daybreak. As we continue our 601 00:33:49,800 --> 00:33:52,960 Speaker 1: focus on the big tech earnings this morning, we're joined 602 00:33:52,960 --> 00:33:56,120 Speaker 1: live now by John Freeman, vice President of Equity Research 603 00:33:56,200 --> 00:33:58,800 Speaker 1: at c f R. A. John, it's great to speak 604 00:33:58,840 --> 00:34:01,280 Speaker 1: with you this morning, as we do see this divergence 605 00:34:01,960 --> 00:34:04,960 Speaker 1: at least in the pre market trading between Microsoft and 606 00:34:05,200 --> 00:34:10,680 Speaker 1: Google parent Alphabet. But Microsoft really came through on earnings. 607 00:34:10,680 --> 00:34:14,560 Speaker 1: What stood out to you from their first quarter results? Yes? Yes, 608 00:34:14,680 --> 00:34:18,760 Speaker 1: did I think it's it's a very interesting pattern um 609 00:34:18,960 --> 00:34:22,400 Speaker 1: that uh we see you know, parallels to back in 610 00:34:22,480 --> 00:34:26,800 Speaker 1: the financial crisis and the beginning of the pandemic and 611 00:34:26,880 --> 00:34:28,680 Speaker 1: you know, even the recession going all the way back 612 00:34:28,719 --> 00:34:33,520 Speaker 1: to these sort of economic tight economic or macro economic 613 00:34:33,719 --> 00:34:38,719 Speaker 1: uh crises and you know, sort of situations um tend 614 00:34:38,760 --> 00:34:42,239 Speaker 1: to actually help enterprise software where Microsoft, you know, is 615 00:34:42,480 --> 00:34:45,120 Speaker 1: focused and obviously, you know, I think for Google it's 616 00:34:45,120 --> 00:34:47,880 Speaker 1: it's you know, obviously advertising revenue overall, it's going to 617 00:34:47,960 --> 00:34:50,400 Speaker 1: be sensitive to that, even though you know, it is 618 00:34:50,440 --> 00:34:53,240 Speaker 1: benefiting from all the secular trends and the dollars moving 619 00:34:53,280 --> 00:34:58,720 Speaker 1: from you know, still moving from traditional advertising to uh 620 00:34:58,760 --> 00:35:02,000 Speaker 1: to online. Um. And you know, Microsoft doesn't you know, 621 00:35:02,080 --> 00:35:04,880 Speaker 1: didn't really have that effect. In fact, being was a 622 00:35:04,960 --> 00:35:08,680 Speaker 1: twenty three percent. Uh. You know, so maybe there's in 623 00:35:08,760 --> 00:35:11,000 Speaker 1: there's you know, I don't some degrees, some share take, 624 00:35:11,320 --> 00:35:14,000 Speaker 1: you know, um, you know, nobody really expects much from 625 00:35:14,400 --> 00:35:17,040 Speaker 1: linked In. Also social media did did quite well. It 626 00:35:17,080 --> 00:35:19,640 Speaker 1: was up thirty percent. I mean, Microsoft was really hitting 627 00:35:19,640 --> 00:35:23,600 Speaker 1: on all cylinders. Does the return to office have any 628 00:35:23,640 --> 00:35:29,720 Speaker 1: impact potentially on where Microsoft could go from here? Well, um, 629 00:35:29,800 --> 00:35:32,480 Speaker 1: I think the return to office is still you know, 630 00:35:32,520 --> 00:35:35,560 Speaker 1: a bit of an open question. Um. But you know, 631 00:35:35,680 --> 00:35:38,200 Speaker 1: I think that people I do. Do you think that 632 00:35:38,200 --> 00:35:41,440 Speaker 1: that at least in um, you know, in in in 633 00:35:41,760 --> 00:35:44,040 Speaker 1: the States, and you know, I think it's through in 634 00:35:44,040 --> 00:35:47,279 Speaker 1: Europe as well, even in Japan. Work is not really 635 00:35:47,280 --> 00:35:49,319 Speaker 1: going to be the same anymore. And that again, I 636 00:35:49,320 --> 00:35:54,000 Speaker 1: mean I think that benefits software companies, especially cloud companies 637 00:35:54,280 --> 00:35:56,759 Speaker 1: that are you know sort of you know, just to 638 00:35:56,800 --> 00:36:00,520 Speaker 1: access the application through a standard web browser, So it's 639 00:36:00,520 --> 00:36:04,919 Speaker 1: sort of intrinsically set up for mobile work at home, 640 00:36:05,320 --> 00:36:08,080 Speaker 1: you know, that kind of those kinds of situations. So 641 00:36:08,120 --> 00:36:09,680 Speaker 1: I think it, I think it actually to some degree 642 00:36:09,760 --> 00:36:13,560 Speaker 1: to accelerate the movement to cloud um, which isn't even 643 00:36:13,600 --> 00:36:16,640 Speaker 1: halfway over. So that's why you know, that also underpins 644 00:36:16,640 --> 00:36:20,040 Speaker 1: a lot of my uh you know, higher than consensus 645 00:36:20,480 --> 00:36:24,319 Speaker 1: um forecast for Microsoft on at least on the top line. Well, 646 00:36:24,360 --> 00:36:27,480 Speaker 1: how do you see Microsoft position in that cloud business 647 00:36:27,480 --> 00:36:31,839 Speaker 1: compared to some of those competitors like Alphabet which has 648 00:36:31,920 --> 00:36:36,080 Speaker 1: its own cloud side and Amazon Web Services. They're gonna 649 00:36:36,080 --> 00:36:39,319 Speaker 1: be reporting later this week, that's right. Yeah, no, And 650 00:36:39,320 --> 00:36:42,240 Speaker 1: and you know Microsoft was a was a pretty fast 651 00:36:42,320 --> 00:36:46,560 Speaker 1: follower behind um Amazon, but you know, you still see 652 00:36:46,560 --> 00:36:50,000 Speaker 1: that first Boober advantage UM with regard to you know, 653 00:36:50,440 --> 00:36:53,520 Speaker 1: Amazon having uh the larger share, but Microsoft is, you know, 654 00:36:54,000 --> 00:36:56,720 Speaker 1: is catching up. And one of the reasons that catching 655 00:36:56,800 --> 00:37:01,319 Speaker 1: up is that Azure is designed not only you know, 656 00:37:01,440 --> 00:37:05,120 Speaker 1: for any sort of cloud uh demand that one might have, 657 00:37:05,400 --> 00:37:08,239 Speaker 1: but very specifically was set up for all of those 658 00:37:08,280 --> 00:37:12,960 Speaker 1: applications that were written using Microsoft dot Net or previously 659 00:37:13,200 --> 00:37:16,840 Speaker 1: you know, the visual basic uh development tools. That's a 660 00:37:16,880 --> 00:37:19,080 Speaker 1: lot of custom applications that are out there in the 661 00:37:19,200 --> 00:37:21,520 Speaker 1: enterprise that you don't even sort of think about, and 662 00:37:21,560 --> 00:37:23,719 Speaker 1: those can be moved to the cloud now and a 663 00:37:23,719 --> 00:37:27,080 Speaker 1: lot more easily because of azure Um and the way 664 00:37:27,120 --> 00:37:29,560 Speaker 1: Microsoft constructed that. So I think that's a you know, 665 00:37:29,640 --> 00:37:32,840 Speaker 1: that's one sort of area of competitive advantage that Microsoft 666 00:37:32,920 --> 00:37:36,239 Speaker 1: has over actually over both Amazon and Google, you know 667 00:37:36,280 --> 00:37:38,680 Speaker 1: which you don't have, you know, a legacy installed base 668 00:37:38,800 --> 00:37:42,160 Speaker 1: of any of any sort. Thanks for this, John, great 669 00:37:42,239 --> 00:37:44,600 Speaker 1: having you on with us. John Freeman, as vice president 670 00:37:44,680 --> 00:37:49,080 Speaker 1: of Equity Research at CFR A and Microsoft shares right 671 00:37:49,080 --> 00:37:51,920 Speaker 1: now are surging in the pre market of five and 672 00:37:51,960 --> 00:37:56,480 Speaker 1: a third percent, while Alphabet is moving lower, down almost 673 00:37:56,680 --> 00:38:00,040 Speaker 1: three percent now in early trading. Karen, Hey, Nathan, it 674 00:38:00,160 --> 00:38:02,759 Speaker 1: is three on Wall Street. It's time for the Bloomberg 675 00:38:02,880 --> 00:38:06,600 Speaker 1: Law Report, brought to you by American Arbitration Association. Business 676 00:38:06,600 --> 00:38:10,640 Speaker 1: disputes are inevitable, resolved faster with the American Arbitration Association, 677 00:38:10,880 --> 00:38:14,440 Speaker 1: the global leader and alternative dispute resolution for over ninety years. 678 00:38:14,719 --> 00:38:17,000 Speaker 1: More at a dr dot org. Now, let's get to 679 00:38:17,000 --> 00:38:19,920 Speaker 1: the legal stories we're watching this morning from Bloomberg's Jeff 680 00:38:19,920 --> 00:38:26,759 Speaker 1: Bellinger Broadband i TV filed a complaint with the International 681 00:38:26,800 --> 00:38:31,560 Speaker 1: Trade Commission alleging the various video on demand technologies, including 682 00:38:31,680 --> 00:38:35,680 Speaker 1: NBC's Peacock, infringe on four patents. The debt collector i 683 00:38:35,840 --> 00:38:38,759 Speaker 1: Q Data faces a class action in federal court in 684 00:38:38,800 --> 00:38:43,040 Speaker 1: California for allegedly recording phone calls to debtors without permission. 685 00:38:43,160 --> 00:38:46,000 Speaker 1: A federal judge approved a settlement between the Fish and 686 00:38:46,040 --> 00:38:50,480 Speaker 1: Wildlife Service and environmental groups. Are rules setting aside habitat 687 00:38:50,560 --> 00:38:55,160 Speaker 1: for Canada. Links will be updated. Bloomberg Law Everything you need, 688 00:38:55,440 --> 00:38:59,440 Speaker 1: all on one legal research platform, including guidance analysis and 689 00:38:59,520 --> 00:39:05,360 Speaker 1: Bloomberg Market Intelligence. Find out more at Bloomberg lawn dot com. 690 00:39:05,360 --> 00:39:07,680 Speaker 1: All right, Jeff, thank you. Now another legal story. We're 691 00:39:07,680 --> 00:39:10,400 Speaker 1: watching the Supreme Court signal that's likely to sign with 692 00:39:10,480 --> 00:39:13,160 Speaker 1: a praying of football coach in the latest case seeking 693 00:39:13,200 --> 00:39:16,040 Speaker 1: to bolster religious rights and the high school coach lost 694 00:39:16,080 --> 00:39:18,759 Speaker 1: his job at a public high school outside Seattle after 695 00:39:18,840 --> 00:39:21,920 Speaker 1: repeatedly taking a knee alongside his players on the fifty 696 00:39:21,960 --> 00:39:25,040 Speaker 1: yard line after games. The coach said the district violated 697 00:39:25,040 --> 00:39:28,720 Speaker 1: his constitutional rights by punishing what he regards as private 698 00:39:28,760 --> 00:39:31,960 Speaker 1: religious expression, but the school district argued that his prayers 699 00:39:31,960 --> 00:39:35,520 Speaker 1: were becoming a community spectacle and leaving players feeling pressure 700 00:39:35,560 --> 00:39:39,480 Speaker 1: to join. For more, Bloomberg, student Grosso speaks to Richard Garnett, 701 00:39:39,600 --> 00:39:42,040 Speaker 1: a professor at Notre Dame Law School and director of 702 00:39:42,080 --> 00:39:46,040 Speaker 1: its program on Church, State and society. Was this about 703 00:39:46,160 --> 00:39:51,960 Speaker 1: the coach offering uh silent prayer on the field after 704 00:39:52,000 --> 00:39:55,840 Speaker 1: the games? Or was it about the coach offering a 705 00:39:55,960 --> 00:40:01,720 Speaker 1: prayer surrounded by players after the It's it's a great question, 706 00:40:01,840 --> 00:40:05,520 Speaker 1: and the answer is it's not entirely clear. And the 707 00:40:05,600 --> 00:40:07,480 Speaker 1: justices spent a lot of the time at the oral 708 00:40:07,560 --> 00:40:09,520 Speaker 1: argument trying to dig into the facts. So what appears 709 00:40:09,560 --> 00:40:13,320 Speaker 1: to be the case is that over time, the coaches 710 00:40:13,680 --> 00:40:17,880 Speaker 1: prayer and the kind of surrounding context for the prayer changed, 711 00:40:18,000 --> 00:40:21,759 Speaker 1: and also the policy and the district's stance changed. The 712 00:40:21,840 --> 00:40:24,840 Speaker 1: lawyer for the coach was urging to the justices to 713 00:40:24,960 --> 00:40:27,440 Speaker 1: focus on the order that was given to the coach, 714 00:40:27,520 --> 00:40:30,880 Speaker 1: that that's what's relevant here, and the order said that 715 00:40:30,920 --> 00:40:35,640 Speaker 1: he wasn't permitted to engage in public religious expression if 716 00:40:35,680 --> 00:40:38,440 Speaker 1: it was viewable by students. The lawyer for the school 717 00:40:38,480 --> 00:40:41,680 Speaker 1: district wanted to suggest to the justices that they should 718 00:40:41,800 --> 00:40:44,200 Speaker 1: consider not just the order that was given to the coach, 719 00:40:44,320 --> 00:40:47,440 Speaker 1: but they should consider all of the reactions that these 720 00:40:47,480 --> 00:40:50,600 Speaker 1: third parties had to the controversy as it developed. It's 721 00:40:50,600 --> 00:40:53,120 Speaker 1: a common problem in some of these cases involving religious 722 00:40:53,160 --> 00:40:57,600 Speaker 1: expression and religious symbols is that the facts are fluid 723 00:40:57,760 --> 00:40:59,920 Speaker 1: and they kind of evolve, and it will be it's 724 00:41:00,120 --> 00:41:03,480 Speaker 1: thing to see how the justices pinned down what it 725 00:41:03,600 --> 00:41:06,200 Speaker 1: is they're actually evaluating. But as I saw it, and 726 00:41:06,360 --> 00:41:08,600 Speaker 1: um I think a majority of the justices saw it 727 00:41:08,640 --> 00:41:12,200 Speaker 1: as well, it appeared that the district again had shifted 728 00:41:12,200 --> 00:41:15,160 Speaker 1: its position from what it originally relied on when it 729 00:41:15,200 --> 00:41:18,080 Speaker 1: disciplined the coach Kelly, to what it's arguing now in 730 00:41:18,120 --> 00:41:20,600 Speaker 1: the court case. Lego Lands seemed to agree that the 731 00:41:20,760 --> 00:41:25,080 Speaker 1: justices are going to rule for the coach. Do you agree, Yeah, 732 00:41:25,280 --> 00:41:27,719 Speaker 1: I do. I mean, I guess I'd say. I think 733 00:41:27,800 --> 00:41:30,640 Speaker 1: some analysts I've seen have said, well, you know, we 734 00:41:30,680 --> 00:41:32,880 Speaker 1: know the court's going to rule for the coach because 735 00:41:33,040 --> 00:41:36,640 Speaker 1: of you know, red versus Blue, or Republican versus Democrats. 736 00:41:36,640 --> 00:41:38,200 Speaker 1: I think that's wrong. I think they're gonna rule for 737 00:41:38,239 --> 00:41:41,040 Speaker 1: the coach because the law pretty clearly protects the right 738 00:41:41,080 --> 00:41:43,080 Speaker 1: of people to engage in a religious expression in the 739 00:41:43,080 --> 00:41:48,000 Speaker 1: public square, and the law doesn't require governments to censor 740 00:41:48,239 --> 00:41:51,960 Speaker 1: private religious speech out of some vague fear of endorsement. 741 00:41:52,200 --> 00:41:55,520 Speaker 1: The law does guarantee that there can't be any coercion 742 00:41:55,600 --> 00:41:58,279 Speaker 1: by government to participate in prayer, but that didn't happen 743 00:41:58,320 --> 00:42:01,760 Speaker 1: here and as Richard Garnett, professor at Notre Dame Law School, 744 00:42:01,760 --> 00:42:04,319 Speaker 1: speaking with the Bloomberg student Grosso. Catch more of that 745 00:42:04,400 --> 00:42:07,640 Speaker 1: interview plus analysis of the latest legal news by subscribing 746 00:42:07,640 --> 00:42:10,239 Speaker 1: to the Bloomberg Law Podcast or downloading the show at 747 00:42:10,239 --> 00:42:14,240 Speaker 1: Bloomberg dot com Slash podcast. Attorneys can find exceptional legal 748 00:42:14,239 --> 00:42:17,440 Speaker 1: research and business development tools at Bloomberg Law dot com 749 00:42:17,480 --> 00:42:20,800 Speaker 1: and on the Bloomberg terminal at b Law. Go S 750 00:42:20,880 --> 00:42:23,720 Speaker 1: and P futures are up forty one point this morning. 751 00:42:23,760 --> 00:42:27,280 Speaker 1: Down Future is up three hundred seventy and NASDAC futures 752 00:42:27,280 --> 00:42:30,720 Speaker 1: have one the ten year treasury down eleven thirty seconds, 753 00:42:30,800 --> 00:42:33,759 Speaker 1: yield two point seven six percent, and the yield on 754 00:42:33,840 --> 00:42:37,120 Speaker 1: the two year two point five seven percent. NIMEX screwed 755 00:42:37,200 --> 00:42:39,479 Speaker 1: oil is up eight tenths of a percent and still 756 00:42:39,480 --> 00:42:42,320 Speaker 1: ahead on Bloomberg Daybreak at check on the business headlines 757 00:42:42,560 --> 00:42:44,560 Speaker 1: and all the news you need to start your day. 758 00:42:45,120 --> 00:42:46,560 Speaker 1: This is Bloomberg