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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning.

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Speaker 1: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 1: stories we're following today.

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Speaker 2: Karen, we begin with the report Wall Street's been waiting

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Speaker 2: for all week. This morning, we get the latest read

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Speaker 2: on inflation with the March report on consumer prices. Economists

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Speaker 2: are forecasting a rise of three tenths of one percent.

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Speaker 2: Let's get a preview from Bloomberg's Michael McKee.

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Speaker 3: For investors and central bankers, it's the same story. Will

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Speaker 3: inflation keep falling enough to keep the Fed on track

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Speaker 3: to lower interest rates this year? Yes, economists say, at

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Speaker 3: least on a month to month basis, food prices, car prices,

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Speaker 3: even home prices have come down a little bit. But

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Speaker 3: energy costs rose during March, particularly for gasoline, and that

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Speaker 3: means headline CPI is expected to rise year over year.

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Speaker 3: While the Fed follows the PCE Inflation Index. Most consumers

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Speaker 3: watch CPI, so a mixed report won't be very good news,

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Speaker 3: even if incremental progress is made. Michael McKee, Bloomberg Radio.

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Speaker 1: All right, Mike, thanks wella headed the report. We are

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Speaker 1: getting more Fed speak Atlanta Fed President Raphael Bostik reiterated

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Speaker 1: his expectation for one interest rate cut this year, but

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Speaker 1: added he is open to changing his view to later

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Speaker 1: or additional rate reduction should the economic picture change. Meanwhile,

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Speaker 1: Bloomberg opinion columnist Muhammadalarian expects the Central Bank's overall trajectory

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Speaker 1: to remain unchanged.

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Speaker 4: I think Chef Poald has made it very clear that

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Speaker 4: he's willing to look through these bumps. They will need

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Speaker 4: overwhelming evidence that it is more than a bump in

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Speaker 4: order for them to ch interviews. Inflation will be sticky.

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Speaker 4: Inflation will be absolutely sticky. We're going to get stuck

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Speaker 4: at a round two and a half to three percent,

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Speaker 4: and I do think that that actually warrants over the

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Speaker 4: long term. The Fed rethinking is inflation targeting, and.

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Speaker 1: Muhammad Larian says expecs two rate cuts this year.

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Speaker 2: Well, forget rate cuts, Karen. Corporate earnings may fuel the

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Speaker 2: next leg of this record breaking stock market rally. Let's

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Speaker 2: get the details on that from Bloomberggs John Tucker.

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Speaker 5: John Nathan Earnings season kicks off Friday, and ahead of that,

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Speaker 5: Wall Street strategists have boosted their year end forecasts for

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Speaker 5: the S and F five hundred. Deutsche Bank's strategists say

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Speaker 5: earnings are expected to post a healthy ten percent gain

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Speaker 5: in the first quarter in the headline numbers from a

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Speaker 5: year ago. According to City Group, earnings upgrades of outnumbered

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Speaker 5: downgrades of the first quarter. The rising profit forecasts have

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Speaker 5: eased concerns that the rally is a bubble. Additionally, forecasts

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Speaker 5: for tech earnings they remain strong, with analysts expecting the

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Speaker 5: sector to report that profits stored twenty percent of the

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Speaker 5: first quarter, and at the same time they outlook for

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Speaker 5: the more economically sensitive sectors. That's brightening, suggesting a broader,

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Speaker 5: healthier rally. I'm John Tucker, Bloomberg Radio.

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Speaker 1: All right, John, thanks well. One company not participating in

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Speaker 1: this rally has been Boeing. This stock is down more

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Speaker 1: than three percent so far this year. The FAA is

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Speaker 1: investigating whistleblower complaints that Boeing took shortcuts to ease production

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Speaker 1: bottlenecks on the seven eighty seven Dreamliner. The company says

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Speaker 1: that claims are inaccurate and do not represent the work

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Speaker 1: it has done to ensure the safety of the plane.

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Speaker 1: Bloomberg's brook Sutherlands says the complaints add to the many

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Speaker 1: challenges facing the embattled plane maker.

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Speaker 6: The FAA has capped Bowing's production rate at about thirty

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Speaker 6: eight seven thirty seven jets per month. Now they are

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Speaker 6: nowhere near that pace right now. They're taking a step

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Speaker 6: back and really trying to drill into safety and their

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Speaker 6: engineering processes. Now that is a good thing in the

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Speaker 6: long run, but certainly not going to show up and

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Speaker 6: their delivery numbers right here in the short term.

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Speaker 1: Bloomberg's brook Sutherlands says the claims intensify the scrutiny of

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Speaker 1: Boeing's manufacturing practices that have been building since one of

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Speaker 1: their planes experienced a mid air accident at the start

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Speaker 1: of the year.

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Speaker 2: In other news, this morning, Karen Arizona will join fourteen

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Speaker 2: other states that have banned abortion at all stages of pregnancy.

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Speaker 2: Bloomberg's at Baxter the details.

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Speaker 7: Arizona Supreme Court has ruled in favor of enforcing a

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Speaker 7: Civil War era abortion ban. It says doctors can be

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Speaker 7: prosecuted for performing an abortion except to save a mother's life.

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Speaker 7: Both Arizona's Attorney General and the governors say they will

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Speaker 7: not enforce the law. Governor Katie Hobbs.

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Speaker 8: Here, we continue to live under an unacceptable ban, a

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Speaker 8: law that still strips Arizonas of their personal autonomy and

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Speaker 8: has no exceptions for women who are the victims of rape, insists,

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Speaker 8: or any regard for pregnancy complications.

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Speaker 7: Politically, this will test Donald Trump's gamble to leave decisions

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Speaker 7: to the states. Arizona is a swing state. Aed Baxter Bloomberg.

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Speaker 1: Radio, all right, ed, thanks well. Turning to the war

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Speaker 1: in Gaza, President Biden has more tough words for Israeli

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Speaker 1: Prime Minister Benjamin Netanyahu after the attack that killed seven

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Speaker 1: AID workers.

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Speaker 9: I think when he's doing his mistake, I don't agree

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Speaker 9: with his book. I think it's outrageous that those four

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Speaker 9: three vehicles Biden drones and taken out on a highway

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Speaker 9: where it wasn't like it was along the shore, it

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Speaker 9: wasn't like there was a convoy moving he, etc.

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Speaker 1: The President spoke in an interview that aired last night

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Speaker 1: on Univision. The conversation was taped last week, two days

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Speaker 1: after the strike that killed the world of Central kitchen workers.

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Speaker 1: President Biden also discressed immigration. He was asked whether he

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Speaker 1: has the authority to shut down the US Mexico border

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Speaker 1: on his own well.

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Speaker 9: It suggested that we're examining whether or not I have

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Speaker 9: that power. I would have that power under the legislation

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Speaker 9: when the border has over five hundred thousand people fit

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Speaker 9: five thousand people a day trying to cross the border

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Speaker 9: because you can't manage to slow it up.

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Speaker 1: And the legislation that President Biden is talking about collapsed

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Speaker 1: in the Senate after former President Donald Trump pressured Republicans

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Speaker 1: to kill it. The President says he's not giving up

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Speaker 1: on that bill.

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Speaker 2: I mean, well, Karen. President Biden and the Prime Minister

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Speaker 2: of Japan are teaming up on an artificial intelligence program.

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Speaker 2: We get the deals that deetis tails on that from

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Speaker 2: Bloomberg Steve Potisk in Washington.

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Speaker 10: The two nations are looking to improve collaboration around the

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Speaker 10: quickly emerging technology. President Biden and Japan's Fumio Kashita have

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Speaker 10: enlisted Amazon and Nvidia to fund a new joint AI

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Speaker 10: research program. A senior US official says the fifty million

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Speaker 10: dollar project will be a joint effort between the University

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Speaker 10: of Washington and Seattle and to Scuba University outside Tokyo.

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Speaker 10: The push for greater research into artificial intelligence comes as

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Speaker 10: the Biden administration is weighing a series of new regulations

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Speaker 10: designed to minimize the risks of AI technology in Washington.

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Speaker 10: Steve Potis Bloomberg.

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Speaker 1: Radio, all right, Steve thanks. In company news, Morsign's Apple

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Speaker 1: is pushing to diversify beyond Shina. The tech giant assembled

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Speaker 1: fourteen billion dollars of iPhones in India last fiscal year,

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Speaker 1: doubling production. Sources say the tech giant now makes as

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Speaker 1: much as fourteen percent for about one in seven of

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Speaker 1: its market devices from India.

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Speaker 2: Sticking with tech Karen revenue as starch, you get the

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Speaker 2: owner of TikTok Bite Dance's profits sword roughly sixty percent

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Speaker 2: in twenty twenty three, outpacing the growth of online peers

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Speaker 2: ten cent holdings in Alli Boba Group. Source to say

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Speaker 2: earnings before interest, tax, appreciation and amortization jumped to more

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Speaker 2: than forty billion dollars from about twenty five billion in

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Speaker 2: twenty twenty two. The world's most valuable startup also grew

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Speaker 2: its sales to nearly one hundred and twenty billion dollars

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Speaker 2: from eighty billion.

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Speaker 1: And we have one other note out of Asia this morning.

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Speaker 1: Nathan Fitch has cut its outlook for China's long term

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Speaker 1: foreign debt from stable to negative. The Writings Agency says

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Speaker 1: rising economic uncertainties have eroded fiscal buffers, although Fitch sees

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Speaker 1: government debt increasing in coming years at a firm China's

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Speaker 1: A plus rating. And as time now for a look

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Speaker 1: at some of the other stories making news in New

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Speaker 1: York and around the world, and for that we're joined

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Speaker 1: by Bloomberg's Michael Barr Michael, good Morning.

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Speaker 11: Good Morning Cairon the first parents convicted and a US

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Speaker 11: mass school shooting have been sentenced to at least ten

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Speaker 11: years in prison at Michigan at Oakland County said that

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Speaker 11: Jennifer and James Crumbley missed opportunities that could have prevented

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Speaker 11: their son Ethan, from possessing a gun and killing four

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Speaker 11: students at Oxford High School in twenty twenty one. Before sentencing,

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Speaker 11: James Crumbley told the court that he couldn't have foreseen

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Speaker 11: what his son was capable of that day.

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Speaker 12: I cannot express how much I wish that I had

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Speaker 12: known what was going on with him.

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Speaker 3: Or what was going to happen.

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Speaker 11: The Crumbleys were convicted of involuntary manslaughter. New York Mayor

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Speaker 11: Eric Adams says he supports legislation to help protect homeowners

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Speaker 11: from squatters. It comes after an ABC seven report about

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Speaker 11: a Flushing homeowner who got arrested for changing the locks

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Speaker 11: on their own home because of a squatter. During a

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Speaker 11: news conference, Adam says, a woman's home is their castle

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Speaker 11: and it's imperative that we continue to protect that. There

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Speaker 11: was a reason that squad of laws was put in place,

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Speaker 11: and you know, I think people are starting to exploit

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Speaker 11: with some of those reasons. Are City Council members say

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Speaker 11: they plan to file legislation that will make it easier

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Speaker 11: for police to remove squatters. Today was supposed to be

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Speaker 11: the day the articles of impeachment against Homeland Security Secretary

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Speaker 11: Alejandro Majorcis we're going to be transmitted from the House.

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Speaker 11: That process was delayed by House Speaker Mike Johnson until

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Speaker 11: next week. Senate Republicans want to make sure they're in

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Speaker 11: full force when the proceedings start. Senate Majority Leader Chuck

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Speaker 11: Schumer says there are no charges in the House complaint

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Speaker 11: that rise to the level of impeaching. Mayorcis, We're going

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Speaker 11: to try and resolve this issue as quickly as possible.

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Speaker 13: Impeachment should never be used to settle policy disagreements.

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Speaker 11: US Ambassador to Japan Rama Manuel says President Joe Biden's

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Speaker 11: administration is looking to reverse China's attempts to isolate countries

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Speaker 11: in Asia, including the Philippines, with help from Japan and

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Speaker 11: other allies in the region.

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Speaker 7: Our strategy is to flip that script and make the

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Speaker 7: isolated party China.

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Speaker 11: Emmanuel's comments to Bloomberg come ahead of the summit between

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Speaker 11: Biden and Japanese Prime Minister fumi Yo Kashita. Globalding was

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Speaker 11: twenty four hours a day and whenever you wanted with

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Speaker 11: the Bloomberg News. Now, I'm Michael Barr. This is Bloomberg. Karen.

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Speaker 1: All right, Michael, thank you. Time now for the Bloomberg

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Speaker 1: Scores update with John stash Hour.

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Speaker 13: John, thanks Karen. The Yankees are ten and two. It's

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Speaker 13: their best starts. In two thousand and three they won

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Speaker 13: the pen at that season. They've only won it one

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Speaker 13: since then. At the Stadium. They beat the Marlins three

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Speaker 13: to two. The big story of the pitching of Carlos

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Speaker 13: Redon last season. He was hurt and then he struggled.

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Speaker 10: Last night.

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Speaker 13: Radan took a shutout to the seventh inning. Yanks go

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Speaker 13: for the series sweep tonight and Atlanta. The Mets, who

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Speaker 13: came from four onnes down on Monday, trailed six to

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Speaker 13: Uphing in the eighth inning when Pete Alonzo had a

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Speaker 13: three run homer. They added two more in the ninth,

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Speaker 13: with the Braves held on six to five. Red Sox

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Speaker 13: lost their home opener, out hit by the Orioles thirteen

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Speaker 13: to two. Baltimore won seven to one. Nationals beat the

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Speaker 13: Giants five to three. The Knicks lost the other night

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Speaker 13: in Chicago and then bust to Milwaukee, beat the Bucks,

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Speaker 13: and then returned to Chicago and this time beat the

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Speaker 13: Bulls one to seventeen. Another big game for Jalen Bruns,

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Speaker 13: and he scored forty five. The Knicks sid third in

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Speaker 13: the East. They're only a game behind second place Milwaukee.

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Speaker 13: The Bucks ended a four game losing streak. They beat

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Speaker 13: the league leading Celtics. The game with only two free throws,

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Speaker 13: shattering the previous NBA record refused in a game. The

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Speaker 13: record had been eleven. The Islanders have picked a good

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Speaker 13: time for their hottest stretch. They made it five wins

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Speaker 13: in a row, beat the Rangers at Ubs Arena forty two.

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Speaker 13: The Islanders right now looking like a playoff team. Devils

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Speaker 13: and Bruins both lost to Capitals one. John Califari's first

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Speaker 13: comments since news that he's leaving Kentucky for Arkansas, he

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Speaker 13: said after fifteen years Kentucky and needed a new voice.

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Speaker 13: The Masters Tea's off tomorrow, forty eight year old Tiger

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Speaker 13: Woods asked how he feels physically.

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Speaker 14: I heard every day.

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Speaker 12: Yes, I ache, No, I ache every day.

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Speaker 3: And I prefer warm and humid and hot.

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Speaker 4: And I know we're wearing some thunderstorms.

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Speaker 3: At least it'll be hot. We'll be like last year, Tiger.

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Speaker 13: We'll try to make the cut for the twenty fourth

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Speaker 13: consecutive time. He's got an afternoon tea time tomorrow plane

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Speaker 13: with Jason Day and Max Homer.

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Speaker 10: Josh Dashawer, Bloomberg Sports.

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Speaker 1: Karen Nan, all right, thank you, John. It is currently well.

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Speaker 1: The S and P futures are higher, up a tenth

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Speaker 1: of up percent or six points down. Futures up a

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Speaker 1: tenth of up percent or fifty two points, NASDAK futures

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Speaker 1: up two tenths of up percent, or thirty two points.

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Speaker 1: In the ten year treasury yield four point three five percent.

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Speaker 11: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 11: and around the world on Bloomberg dot Com and the

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Speaker 11: Bloomberg Business app.

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Speaker 10: This is Bloomberg Daybreak. Good morning. I'm Nathan Hager.

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Speaker 2: We are just hours away from the latest street on

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Speaker 2: inflation in the US, the Consumer Price Index for March,

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Speaker 2: and we get more now from Bloomberg's Kredi Gupta so critty.

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Speaker 2: Since the start of the year, the road to disinflation's

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Speaker 2: been choppy. Are we thinking that that's what we're going

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Speaker 2: to see today?

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Speaker 14: This is the make or break moment of whether or

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Speaker 14: not this is kind of a one off or a

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Speaker 14: two off in terms of hot CPI reports, to whether

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Speaker 14: or not this was just kind of a momentary uptick. Nathan,

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Speaker 14: I don't need to remind you of all people the

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Speaker 14: transitory conversation, and it kind of has felt like the

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Speaker 14: Federal Reserve and members of the FMC have kind of

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Speaker 14: brushed off this uptick in the data as seasonal or

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Speaker 14: as in kind of a one off for for lack

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Speaker 14: of a better term, whereas the markets have said, well, actually,

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Speaker 14: maybe this is indicative of some sort of persistent piece

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Speaker 14: of inflation. That story of the last mile of inflation

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Speaker 14: may be the most challenging. You've heard that narrative from

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Speaker 14: around the world, and I think the best way to

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Speaker 14: look at it, Nathan, is what you're seeing in the

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Speaker 14: bond market right now. Take a look at yields. Four

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Speaker 14: thirty nine is where we're at. We weren't expecting yields

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Speaker 14: to stay this high. We had, in the words of

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Speaker 14: Bob michael Over at JP Morgan Asset Management six months ago,

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Speaker 14: he said, there would be insatiable demand for bonds, this

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Speaker 14: kind of bull market for bonds that we haven't really

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Speaker 14: seen in a while, given the inflationary standpoint that we've had,

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Speaker 14: and we've actually haven't seen that fully manifest yet. Now

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Speaker 14: more concerns about whether or not we hit say five

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Speaker 14: percent on yields, for example, before we hit even three

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Speaker 14: and a half, and that is really, at its core

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Speaker 14: a concern that again, maybe it's not a story of

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Speaker 14: services inflation anymore. Maybe we start to see more upticks

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Speaker 14: or some sort of resurgence in goods driven inflation. Think commodities,

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Speaker 14: oil prices, Does food get a little bit more expensive,

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Speaker 14: Does housing, for example, eat up a bigger chunk of

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Speaker 14: the inflationary story. This is potentially Chair Powell's worst nightmare.

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Speaker 2: And when you think about the pressures that we're seeing

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Speaker 2: in commodities, in food and energy, it makes you think

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Speaker 2: about what kind of bleed through that has into that

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Speaker 2: core inflation that the Federal Reserve does have some control

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Speaker 2: over in terms of monetary policy, whether that could make

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Speaker 2: the job for the Fed to get these price pressures

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Speaker 2: under control even more difficult.

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Speaker 1: It could.

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Speaker 14: And look, I think this is where of the nitty

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Speaker 14: gritty and the real nerdiness of the CPI report comes out.

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Speaker 14: I think Anna Wongar, chief economist over at Bloomer Economics,

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Speaker 14: does a really great job of explaining it in terms

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Speaker 14: of saying you have to pay attention now perhaps less

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Speaker 14: to the labor market, which by the ways, is something

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Speaker 14: that Raphael Bostic over at the Atlantic Fed said as well,

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Speaker 14: and pay more attention to the housing story. Pay attention

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Speaker 14: to things like airfares, for example, because we're talking about

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Speaker 14: the most direct read through from the Federal Reserve, Nathan,

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Speaker 14: the most direct raid through to the consumer that I

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Speaker 14: can think of is kind of interest rates going higher,

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Speaker 14: that affecting mortgage rates, that affecting whether or not people

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Speaker 14: want to actually invest that kind of money at these

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Speaker 14: high rates in an actual house or continue the rental story.

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Speaker 14: That is your most direct piece of the inflationary kind

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Speaker 14: of impulse, especially at a time when wages are actually

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Speaker 14: higher at the moment than inflation is. For a very

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Speaker 14: long time they weren't be, and that time where it

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Speaker 14: felt like inflation was outpacing the salary increases that Americans got.

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Speaker 14: And I think this applies to every inflationary story around

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Speaker 14: the world, but specifically Americans. It is still embedded in

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Speaker 14: the psyche that maybe things are still really expensive and

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Speaker 14: that we're not making as much in line with inflation.

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Speaker 14: When the data shows the opposite, the psychoanalysis of that

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Speaker 14: may be very different.

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Speaker 2: And that feeds into that argument that Mohammadel area in

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Speaker 2: Bloomberg Opinion has been arguing for quite some time that

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Speaker 2: the FEDS two percent inflation target might not be realistic

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Speaker 2: anymore and they should be thinking maybe more about three

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Speaker 2: percent going forward.

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Speaker 10: So we'll get much more.

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Speaker 2: On this in the hours to come when that March

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Speaker 2: consumer price index comes out. As we say, eight thirty

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Speaker 2: am Wall Street Time, Critty Group of Bloomberg News, thank you.

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Speaker 2: As always, this is Bloomberg Daybreak Today, your morning brief

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Speaker 2: on the stories making news from Wall Street to Washington

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Speaker 2: and beyond.

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Speaker 2: am Wall Street Time, on Bloomberg eleven three to zero

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