1
00:00:02,480 --> 00:00:12,120
Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan

2
00:00:12,119 --> 00:00:15,080
Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're

3
00:00:15,120 --> 00:00:15,920
Speaker 1: following today.

4
00:00:16,120 --> 00:00:19,320
Speaker 2: Karen, we kick off with earning season. We hear from

5
00:00:19,360 --> 00:00:23,960
Speaker 2: the first of the big banks today, JP Morgan, Chase, Citygroup,

6
00:00:24,000 --> 00:00:28,040
Speaker 2: and Wells Fargo All report. Bloomberg Wall Street correspondent Shanalie

7
00:00:28,040 --> 00:00:30,680
Speaker 2: Basic says inflation will affect the results.

8
00:00:31,560 --> 00:00:34,479
Speaker 3: On one hand, it's kept interest rates higher for longer,

9
00:00:34,800 --> 00:00:37,640
Speaker 3: and it's meant that potentially net interest income could come

10
00:00:37,640 --> 00:00:41,000
Speaker 3: in higher this year than initially expected. Investors will be

11
00:00:41,040 --> 00:00:44,160
Speaker 3: watching out for whether JP Morgan in particular will raise

12
00:00:44,280 --> 00:00:46,839
Speaker 3: or keep their guidance for net interest income. On the

13
00:00:46,840 --> 00:00:49,920
Speaker 3: other hand, inflation keeps costs high for these banks, and

14
00:00:49,960 --> 00:00:52,640
Speaker 3: the likes of Citygroup, Wells Fargo, and Bank of America

15
00:00:52,680 --> 00:00:55,280
Speaker 3: will be watched closely on how they're keeping a handle

16
00:00:55,320 --> 00:00:57,200
Speaker 3: on those costs and what it means for their head

17
00:00:57,200 --> 00:01:00,200
Speaker 3: count in New York. Shanali Basic Bloomberg.

18
00:00:59,800 --> 00:01:02,760
Speaker 1: Rat All right, chan Ellie, thank you. One other note

19
00:01:02,840 --> 00:01:05,840
Speaker 1: on the banking industry, Morgan Stanley dropped more than five

20
00:01:05,880 --> 00:01:09,319
Speaker 1: percent in a report. US regulators are scrutinizing the firm's

21
00:01:09,319 --> 00:01:12,959
Speaker 1: efforts to prevent potential money laundering by wealthy clients. The

22
00:01:13,000 --> 00:01:15,679
Speaker 1: Wall Street Journal says the security is in Exchange Commission,

23
00:01:15,720 --> 00:01:18,039
Speaker 1: the Office of the Controller of the Currency and other

24
00:01:18,120 --> 00:01:21,760
Speaker 1: Treasury Department of fishes are all looking into the issue.

25
00:01:21,800 --> 00:01:25,399
Speaker 1: Bloomberg Intelligences Elliott Stein says the investigation has been in

26
00:01:25,440 --> 00:01:26,520
Speaker 1: the works for some time.

27
00:01:27,040 --> 00:01:29,840
Speaker 4: We already knew from November that the Federal Reserve was

28
00:01:29,880 --> 00:01:35,200
Speaker 4: investigating Morgan Stanley on this very issue. This story suggests

29
00:01:35,200 --> 00:01:37,880
Speaker 4: that the probe is a little broader and other agencies

30
00:01:37,880 --> 00:01:41,160
Speaker 4: are looking to including the SEC, the ROCC and Sert's

31
00:01:41,280 --> 00:01:43,520
Speaker 4: you know it's more than just the Fed right now.

32
00:01:43,560 --> 00:01:47,000
Speaker 1: And Bloomberg's elliott Stein says. A Morgan Stanley spokesperson declined

33
00:01:47,040 --> 00:01:48,240
Speaker 1: to comment on the story.

34
00:01:48,480 --> 00:01:48,960
Speaker 5: Well Karen.

35
00:01:48,960 --> 00:01:52,480
Speaker 2: Economists at Deutsche Bank and Bank of America are commenting,

36
00:01:52,600 --> 00:01:56,640
Speaker 2: joining the growing crowd of forecasters dialing back expectations on

37
00:01:57,000 --> 00:02:00,600
Speaker 2: interest rate cuts in the US. Details on that from

38
00:02:00,640 --> 00:02:01,960
Speaker 2: Bloomberg's Charlie Pellett.

39
00:02:02,320 --> 00:02:05,120
Speaker 6: The move came after the consumer price index rows at

40
00:02:05,120 --> 00:02:08,200
Speaker 6: a faster than expected pace for a third straight month.

41
00:02:08,520 --> 00:02:12,040
Speaker 6: Strategists at Deutsche Bank and Bank of America now predict

42
00:02:12,080 --> 00:02:15,640
Speaker 6: that the Federal Reserve will ease policy just once this year,

43
00:02:15,960 --> 00:02:20,000
Speaker 6: in December. That is a sharp reduction in previous forecast

44
00:02:20,080 --> 00:02:23,720
Speaker 6: from both firms, which each previously saw the Federal Reserve

45
00:02:24,000 --> 00:02:27,680
Speaker 6: beginning to ease policy starting in June. In New York,

46
00:02:27,919 --> 00:02:30,000
Speaker 6: Charlie Pellett Bloomberg Radio.

47
00:02:29,880 --> 00:02:32,040
Speaker 1: All right, Charlie, thanks, We'll be head to Europe now.

48
00:02:32,120 --> 00:02:35,440
Speaker 1: After a mild recession, the UK economy grew for a

49
00:02:35,560 --> 00:02:37,960
Speaker 1: second month, and we get the latest from Bloomberg's Ewen

50
00:02:38,080 --> 00:02:39,480
Speaker 1: Pots in London ew.

51
00:02:40,120 --> 00:02:43,680
Speaker 7: Karenon Nathan UK GDP grew zero point one percent in February,

52
00:02:43,720 --> 00:02:46,519
Speaker 7: with January's figure revised up to an increase of zero

53
00:02:46,520 --> 00:02:50,600
Speaker 7: point three percent. Both manufacturing and services came in stronger

54
00:02:50,600 --> 00:02:54,280
Speaker 7: than expected. The construction was weaker, blamed on very wet weather.

55
00:02:54,639 --> 00:02:57,240
Speaker 7: The figures add to evidence the British economy is gathering

56
00:02:57,280 --> 00:03:00,480
Speaker 7: momentum after sliding into a shallow technical recession in the

57
00:03:00,520 --> 00:03:01,400
Speaker 7: second half.

58
00:03:01,160 --> 00:03:01,839
Speaker 4: Of last year.

59
00:03:02,000 --> 00:03:04,320
Speaker 7: In London, I'm you and pot Splinberg Radio, okay you.

60
00:03:04,400 --> 00:03:04,840
Speaker 5: And thank you.

61
00:03:04,919 --> 00:03:08,000
Speaker 2: Moving to the commodity sector, the mad rush into gold

62
00:03:08,160 --> 00:03:11,080
Speaker 2: continues Earlier this morning for the first time ever. Spot

63
00:03:11,120 --> 00:03:14,520
Speaker 2: gold rose above twenty four hundred dollars an ounce, heightened

64
00:03:14,520 --> 00:03:17,080
Speaker 2: Middle East tensions and the outlook from auditary policy of

65
00:03:17,080 --> 00:03:20,160
Speaker 2: fueled these gains. Other commodities are also on the move.

66
00:03:20,200 --> 00:03:22,800
Speaker 2: This morning, silver hit its highest level in more than

67
00:03:22,840 --> 00:03:25,960
Speaker 2: three years. Copper is at its best since June of

68
00:03:26,000 --> 00:03:26,839
Speaker 2: twenty twenty two.

69
00:03:27,400 --> 00:03:29,520
Speaker 1: Well, we're also keeping an eye on oil on Nathan

70
00:03:29,560 --> 00:03:32,960
Speaker 1: After a bearish new report on creude demand, the International

71
00:03:33,120 --> 00:03:36,360
Speaker 1: Energy Agency is cutting its forecast for this year and next,

72
00:03:36,600 --> 00:03:39,920
Speaker 1: predicting demand growth of just one point one million barrels

73
00:03:39,960 --> 00:03:42,680
Speaker 1: a day in twenty twenty five. That's about a million

74
00:03:43,040 --> 00:03:46,560
Speaker 1: less than the increased scene by opek. IA is also

75
00:03:46,680 --> 00:03:50,440
Speaker 1: warning that persistent Ukrainian drone attacks on Russian oil refineries

76
00:03:50,440 --> 00:03:54,000
Speaker 1: could disrupt the global market. Checking nimex crewede oil, it's

77
00:03:54,080 --> 00:03:56,360
Speaker 1: up one and a quarter percent. It's at eighty six

78
00:03:56,400 --> 00:03:59,080
Speaker 1: dollars eight cents a barrel, while Brent is it ninety

79
00:03:59,120 --> 00:04:01,040
Speaker 1: dollars sixty seven and sense well, this.

80
00:04:01,000 --> 00:04:03,440
Speaker 2: Can affect the oil market care and the Biden administration's

81
00:04:03,480 --> 00:04:06,880
Speaker 2: planning a sweeping effort to block Arctic drilling. More on

82
00:04:06,920 --> 00:04:08,320
Speaker 2: that from Bloomberg said Baxter.

83
00:04:08,760 --> 00:04:11,480
Speaker 8: A century ago, the US set aside twenty three million

84
00:04:11,480 --> 00:04:15,080
Speaker 8: acres of Alaska's North Slope to serve as an emergency

85
00:04:15,160 --> 00:04:18,800
Speaker 8: oil supply. Now, President Biden is moving to block any

86
00:04:18,839 --> 00:04:22,240
Speaker 8: oil and gas development across roughly half of it. The

87
00:04:22,279 --> 00:04:25,880
Speaker 8: administration says the effort will boost land conservation and fight

88
00:04:25,960 --> 00:04:29,200
Speaker 8: climate change. The oil industry says the plan is more

89
00:04:29,240 --> 00:04:32,920
Speaker 8: expansive than initially thought and will make it almost impossible

90
00:04:32,960 --> 00:04:36,240
Speaker 8: to build another megaproject in the region. The companies say

91
00:04:36,240 --> 00:04:40,479
Speaker 8: they have recently made large discoveries which would yield supplies

92
00:04:40,520 --> 00:04:44,400
Speaker 8: for decades to come. At Baxter Bloomberg Radio, All right.

93
00:04:44,400 --> 00:04:47,200
Speaker 1: Ed, thanks so. President Biden is also making another move

94
00:04:47,279 --> 00:04:50,560
Speaker 1: to tackle student debt. He's forgiving loans for about two

95
00:04:50,640 --> 00:04:53,640
Speaker 1: hundred and seventy seven thousand Americans, most of them enrolled

96
00:04:53,640 --> 00:04:56,960
Speaker 1: in the government's Safe program, which promises to cancel dead

97
00:04:57,000 --> 00:04:59,640
Speaker 1: after at least ten years of her payments. This move

98
00:04:59,680 --> 00:05:02,800
Speaker 1: will type away about seven point four billion dollars in

99
00:05:02,880 --> 00:05:06,240
Speaker 1: federal student debt. Earlier this week, President Biden announced a

100
00:05:06,279 --> 00:05:08,680
Speaker 1: plan B to forgive loans for more than twenty five

101
00:05:08,760 --> 00:05:12,400
Speaker 1: million borrowers. That move is likely to face court challenges.

102
00:05:12,720 --> 00:05:16,200
Speaker 2: In company news, Karen, Apple is preparing to overhaul its

103
00:05:16,440 --> 00:05:18,960
Speaker 2: entire Mac computer line with a new set of in

104
00:05:19,040 --> 00:05:23,480
Speaker 2: house processors designed to highlight artificial intelligence. Sources say. The

105
00:05:23,520 --> 00:05:26,280
Speaker 2: tech giants also nearing production of its next generation chip,

106
00:05:26,320 --> 00:05:30,520
Speaker 2: the M four processor. Bloomberg's Mark German says this news

107
00:05:30,600 --> 00:05:32,839
Speaker 2: is more to do with AI than the computers.

108
00:05:33,000 --> 00:05:37,120
Speaker 9: It's not necessarily the MAX themselves. Obviously, MAX are a

109
00:05:37,240 --> 00:05:41,440
Speaker 9: small portion of the overall revenue base for Apple on

110
00:05:41,480 --> 00:05:45,200
Speaker 9: an annual basis, something around ten percent, and I'm not

111
00:05:45,320 --> 00:05:48,159
Speaker 9: sure that any investor believes that's going to skyrocket to

112
00:05:48,560 --> 00:05:51,680
Speaker 9: doubling revenue or even going a third hire. I think

113
00:05:51,680 --> 00:05:54,320
Speaker 9: it's the focus on AI. I think that investors are

114
00:05:54,360 --> 00:05:57,520
Speaker 9: seeing that Apple's trying to push artificial intelligence to every

115
00:05:57,560 --> 00:05:59,840
Speaker 9: nook and cranny. It could across the company.

116
00:05:59,560 --> 00:06:02,039
Speaker 2: And bloom Grgsmark German says Apples aiming to release the

117
00:06:02,080 --> 00:06:05,200
Speaker 2: updated MAX beginning late this year and extending into early

118
00:06:05,279 --> 00:06:06,240
Speaker 2: next well.

119
00:06:06,320 --> 00:06:09,000
Speaker 1: Nathan Samsung is preparing to take the wraps off of

120
00:06:09,080 --> 00:06:11,920
Speaker 1: forty four billion dollar investment in US chip making as

121
00:06:11,960 --> 00:06:15,479
Speaker 1: soon as next week. It's a signature project in Washington's

122
00:06:15,560 --> 00:06:19,680
Speaker 1: broader effort to bring semiconductor production back to America. Sources

123
00:06:19,720 --> 00:06:22,480
Speaker 1: say the world's biggest memory chip maker plans to outline

124
00:06:22,480 --> 00:06:26,760
Speaker 1: the project in Texas alongside Commerce Secretary Gina Ramondo.

125
00:06:26,560 --> 00:06:30,159
Speaker 2: And welcome to the club. Amazon, the e commerce and

126
00:06:30,320 --> 00:06:33,719
Speaker 2: cloud computing giant, is trading at a record Amazon is

127
00:06:33,760 --> 00:06:35,680
Speaker 2: the last of the big five US tech firms to

128
00:06:35,680 --> 00:06:37,600
Speaker 2: reach an all time high in the rebound from the

129
00:06:37,600 --> 00:06:40,720
Speaker 2: post pandemic sell off. In a bid to win over investors,

130
00:06:40,760 --> 00:06:44,239
Speaker 2: Amazon is slashed costs and restructured its business. Its efforts

131
00:06:44,240 --> 00:06:47,400
Speaker 2: to streamline operations have helped to boost profits and win

132
00:06:47,480 --> 00:06:48,560
Speaker 2: over shareholders.

133
00:06:52,240 --> 00:06:53,560
Speaker 1: And it's time now for a look at some of

134
00:06:53,560 --> 00:06:56,039
Speaker 1: the other stories making news in New York and around

135
00:06:56,080 --> 00:06:58,880
Speaker 1: the world. And from that we're joined by Bloomberg's Michael Barr. Michael,

136
00:06:58,880 --> 00:07:00,359
Speaker 1: good morning, Good morning Karen.

137
00:07:00,400 --> 00:07:04,320
Speaker 5: Today the House will vote on reauthorizing the Foreign Intelligence

138
00:07:04,360 --> 00:07:08,279
Speaker 5: Surveillance Act. Earlier this week, House Republicans blocked FISA from

139
00:07:08,320 --> 00:07:12,360
Speaker 5: being renewed after former President Trump pressed them to kill it,

140
00:07:12,760 --> 00:07:16,720
Speaker 5: claiming it was used to spy on his campaign. Yesterday,

141
00:07:16,880 --> 00:07:21,240
Speaker 5: FBI Director Christopher Ray talked about ongoing threats the US

142
00:07:21,360 --> 00:07:23,640
Speaker 5: faces and urged Congress to renew it.

143
00:07:23,760 --> 00:07:28,640
Speaker 10: Failure to reauthorize seven two, or gutting it with some

144
00:07:28,760 --> 00:07:33,080
Speaker 10: new kind of warrant requirement would be dangerous and put Americans'

145
00:07:33,760 --> 00:07:34,880
Speaker 10: lives at risk.

146
00:07:35,280 --> 00:07:38,680
Speaker 5: FBI Director Ray testified at a House subcommittee hearing on

147
00:07:38,720 --> 00:07:42,440
Speaker 5: the fiscal year twenty twenty five budget requests for the bureau.

148
00:07:43,000 --> 00:07:46,480
Speaker 5: The NYPD has ramped up security around the courthouse where

149
00:07:46,560 --> 00:07:50,080
Speaker 5: jerry selection is set to start Monday in Manhattan. In

150
00:07:50,200 --> 00:07:53,720
Speaker 5: former President Donald Trump's hush money trial, the presumpt of

151
00:07:53,720 --> 00:07:59,440
Speaker 5: Republican presidential nominee as pleaded not guilty. The proceedings present

152
00:07:59,760 --> 00:08:03,360
Speaker 5: his historic challenge for the court and the lawyers, including

153
00:08:03,440 --> 00:08:08,119
Speaker 5: finding prospective jurors who can be impartial. Police. A part

154
00:08:08,200 --> 00:08:10,760
Speaker 5: of New York City will be frozen during the trial.

155
00:08:11,320 --> 00:08:14,040
Speaker 5: The death of O. J. Simpson reminded America about the

156
00:08:14,160 --> 00:08:17,400
Speaker 5: murder victims in the infamous case his ex wife, Nicole

157
00:08:17,440 --> 00:08:21,840
Speaker 5: Brown Simpson and her friend Ronald Goldman. Kat o'kaalin, Simpson's

158
00:08:21,880 --> 00:08:24,520
Speaker 5: former house guest, who served as a witness in the

159
00:08:24,560 --> 00:08:28,160
Speaker 5: nineteen ninety five murder trial, issued a video statement to.

160
00:08:28,120 --> 00:08:31,080
Speaker 11: The family of the beautiful Nicole Brown Simpson, May we

161
00:08:31,080 --> 00:08:35,520
Speaker 11: always cherish her memories. Nicole was a beacon of light

162
00:08:35,600 --> 00:08:38,640
Speaker 11: that burned bright. May we never forget her.

163
00:08:39,360 --> 00:08:43,200
Speaker 5: Meanwhile, Simpson died without having paid the lion's share of

164
00:08:44,440 --> 00:08:47,800
Speaker 5: thirty three point five million dollar judgment. The civil jury

165
00:08:47,840 --> 00:08:50,480
Speaker 5: in nineteen ninety seven awarded it to the families of

166
00:08:50,520 --> 00:08:53,840
Speaker 5: his ex wife and Goldman. The Goldman and Brown families

167
00:08:53,880 --> 00:08:55,720
Speaker 5: could be at the front of the line to get

168
00:08:55,760 --> 00:08:59,600
Speaker 5: paid whatever Simpson left behind. President Joe Biden has added

169
00:08:59,600 --> 00:09:03,000
Speaker 5: more China these companies and individuals to an export blacklist

170
00:09:03,280 --> 00:09:08,000
Speaker 5: than any US administration. The Commerce Department added six Chinese

171
00:09:08,080 --> 00:09:11,640
Speaker 5: companies to its entity list yesterday, bringing the tally of

172
00:09:11,720 --> 00:09:15,439
Speaker 5: new targets during the Biden administration to three hundred and nineteen.

173
00:09:16,040 --> 00:09:19,040
Speaker 5: Global News twenty four hours a day and whenever you

174
00:09:19,120 --> 00:09:21,920
Speaker 5: want it with the Bloomberg News Now Michael Barr and

175
00:09:22,280 --> 00:09:24,400
Speaker 5: this is Bloomberg Karen, all right.

176
00:09:24,320 --> 00:09:30,680
Speaker 1: Michael Barr, thank you, and it is time now for

177
00:09:30,720 --> 00:09:33,400
Speaker 1: the Bloomberg Sports Update with John stash Hour.

178
00:09:33,559 --> 00:09:36,679
Speaker 12: John, thanks Garrets by the early rain, they got most

179
00:09:36,720 --> 00:09:39,400
Speaker 12: of the Masters opening round in. There are some golfers,

180
00:09:39,440 --> 00:09:41,600
Speaker 12: including Tiger Woods. You need to come back early this

181
00:09:41,640 --> 00:09:43,920
Speaker 12: morning to finish it up before playing round two, Tiger

182
00:09:44,000 --> 00:09:47,240
Speaker 12: was steady one under part through thirteen holes, the leader

183
00:09:47,280 --> 00:09:50,240
Speaker 12: with a seven hundred and sixty five racing Deshambo.

184
00:09:50,960 --> 00:09:53,320
Speaker 13: It's always great getting off the hot start three under

185
00:09:53,440 --> 00:09:55,880
Speaker 13: through first three holes, kind of get you settled. I

186
00:09:55,920 --> 00:09:57,160
Speaker 13: knew it was going to be a tough day today

187
00:09:57,200 --> 00:09:59,680
Speaker 13: with the wind and even tomorrow, so a lot of

188
00:09:59,679 --> 00:10:02,800
Speaker 13: patient this is required around this golf course and making

189
00:10:02,840 --> 00:10:04,599
Speaker 13: sure you're just stroking it on your line, putting a

190
00:10:04,679 --> 00:10:07,400
Speaker 13: good hitting good iron shots and driving it well.

191
00:10:07,480 --> 00:10:09,880
Speaker 12: And he drives it farther than pretty much anyone. World

192
00:10:09,960 --> 00:10:12,839
Speaker 12: number one. Scottie Scheffler never seems to have a bad round.

193
00:10:12,880 --> 00:10:16,000
Speaker 12: He's one shot behind Rory McElroy, shot one under defending

194
00:10:16,080 --> 00:10:19,560
Speaker 12: champ John Rahm one over the Knicks in Boston, meaningless

195
00:10:19,559 --> 00:10:21,679
Speaker 12: game for the Celtics. They've clinched home court in the playoffs,

196
00:10:21,679 --> 00:10:24,199
Speaker 12: but they did use all their guys and the next

197
00:10:24,240 --> 00:10:26,319
Speaker 12: beat him easily, up by twenty nine going to the

198
00:10:26,320 --> 00:10:28,520
Speaker 12: fourth quarter of the final was one eighteen to one

199
00:10:28,520 --> 00:10:32,720
Speaker 12: oh nine. Jalen Brunson continues his scoring taar thirty nine points.

200
00:10:32,960 --> 00:10:34,760
Speaker 12: He scored thirty five or more and each to the

201
00:10:34,800 --> 00:10:37,360
Speaker 12: last five at the Garden in Philadelphia beat the Rangers

202
00:10:37,360 --> 00:10:37,839
Speaker 12: four to one.

203
00:10:37,840 --> 00:10:38,400
Speaker 5: At Ubs.

204
00:10:38,440 --> 00:10:41,199
Speaker 12: The Islanders now on the verge of making the playoffs

205
00:10:41,240 --> 00:10:42,760
Speaker 12: with a six win in a row, three two in

206
00:10:42,800 --> 00:10:45,240
Speaker 12: overtime over Montreal. Kyle Palmery the game when You Go

207
00:10:45,559 --> 00:10:48,319
Speaker 12: The Devil's won the Capitol's lost Day game for the Mets,

208
00:10:48,320 --> 00:10:51,120
Speaker 12: and in Atlanta, they scored seven runs in the first

209
00:10:51,120 --> 00:10:53,480
Speaker 12: three innings and nine more in the last three a

210
00:10:53,600 --> 00:10:55,880
Speaker 12: sixteen to four ro out of the Braves. Metsri five

211
00:10:55,920 --> 00:10:58,480
Speaker 12: and two. Since that zero to five started, Fenway the

212
00:10:58,480 --> 00:11:01,200
Speaker 12: Orioles with a six ron tenth Denny and Fit used

213
00:11:01,200 --> 00:11:03,240
Speaker 12: a sweep with the Red Sox nine to four. College

214
00:11:03,280 --> 00:11:07,840
Speaker 12: Hockey's frozen four semifinals saw BC shout out Michigan bu

215
00:11:08,200 --> 00:11:12,040
Speaker 12: who's an overtime with Denver BYU basketball coach Mark Pope,

216
00:11:12,280 --> 00:11:14,280
Speaker 12: who with a new coach at Kentucky who we played

217
00:11:14,320 --> 00:11:17,600
Speaker 12: for in the mid nineteen nineties, replaces John Calipari who

218
00:11:17,640 --> 00:11:22,000
Speaker 12: made the surprising move to Arkansas. John Stashedwer Bloomberg Sports, Karen.

219
00:11:21,880 --> 00:11:24,680
Speaker 1: Nathan all Right, John, thank you, and futures are mixed

220
00:11:24,760 --> 00:11:26,680
Speaker 1: s and p futures down a tenth of up percent

221
00:11:26,720 --> 00:11:29,079
Speaker 1: down futures up a tenth of up percent, Naw's day

222
00:11:29,160 --> 00:11:31,400
Speaker 1: futures down three tenths of up percent, and the ten

223
00:11:31,440 --> 00:11:34,040
Speaker 1: year treasury yield four point five four percent.

224
00:11:37,920 --> 00:11:42,280
Speaker 5: Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and.

225
00:11:42,320 --> 00:11:45,640
Speaker 6: Around the world on Bloomberg dot Com and the Bloomberg

226
00:11:45,679 --> 00:11:46,280
Speaker 6: Business app.

227
00:11:46,520 --> 00:11:48,480
Speaker 5: This is Bloomberg Daybreak.

228
00:11:49,520 --> 00:11:51,720
Speaker 2: Good morning, I'm Nathan Hager, and we are getting ready

229
00:11:51,720 --> 00:11:54,280
Speaker 2: for the kickoff of first quarter earning season. The biggest

230
00:11:54,280 --> 00:11:57,000
Speaker 2: Wall Street banks start to open their books before the

231
00:11:57,000 --> 00:12:00,960
Speaker 2: opening bell. JP Morgan, Chase, City Group and Wells Fargo

232
00:12:00,960 --> 00:12:03,520
Speaker 2: will be first out the gate. Joining us now with

233
00:12:03,559 --> 00:12:06,719
Speaker 2: a preview is Bloomberg's Charlie Wells. Charlie, good morning, thanks

234
00:12:06,760 --> 00:12:09,080
Speaker 2: for being with us. Good morning, Thank you so much

235
00:12:09,080 --> 00:12:11,920
Speaker 2: for having me. Big day, Yeah, absolutely, it's a big day.

236
00:12:12,000 --> 00:12:16,120
Speaker 2: So much focus on what these higher for longer interest rates,

237
00:12:16,160 --> 00:12:19,360
Speaker 2: this prospect for them, is going to mean for these

238
00:12:19,440 --> 00:12:21,959
Speaker 2: banks net interest income outlook.

239
00:12:22,000 --> 00:12:25,199
Speaker 14: Net interest income, which that you know is the biggest

240
00:12:25,200 --> 00:12:27,160
Speaker 14: source of revenue for these banks, and what a lot

241
00:12:27,160 --> 00:12:31,080
Speaker 14: of executives have been saying late last year was that

242
00:12:31,120 --> 00:12:33,520
Speaker 14: they needed to kind of dampen expectations for the year

243
00:12:33,559 --> 00:12:36,720
Speaker 14: going ahead. But if we enter this world where rates

244
00:12:36,960 --> 00:12:39,400
Speaker 14: are higher for longer, what that could potentially mean is

245
00:12:39,440 --> 00:12:41,920
Speaker 14: that this crucial source of income for these banks could

246
00:12:41,920 --> 00:12:44,079
Speaker 14: be bigger than expected. So what I'm really watching for

247
00:12:44,200 --> 00:12:47,200
Speaker 14: is the potential guidance that some of these executives give.

248
00:12:47,600 --> 00:12:51,000
Speaker 14: Something else that's so important is investment banking revenue. So

249
00:12:51,040 --> 00:12:53,680
Speaker 14: we've heard so much about better news on M and A,

250
00:12:53,800 --> 00:12:56,720
Speaker 14: We've heard so much, you know, about more IPOs. Does

251
00:12:56,760 --> 00:12:59,040
Speaker 14: that translate into these earnings? I think those are two

252
00:12:59,160 --> 00:13:00,640
Speaker 14: key areas to folkocus on today.

253
00:13:00,679 --> 00:13:02,839
Speaker 2: And we did get a little bit of a preview

254
00:13:03,320 --> 00:13:06,440
Speaker 2: from Jamie Diamond, the CEO of JP Morgan Chase the

255
00:13:06,440 --> 00:13:09,880
Speaker 2: annual shareholder letter. A lot of the focus on artificial

256
00:13:09,960 --> 00:13:13,599
Speaker 2: intelligence makes you think about whether efficiencies are going to

257
00:13:13,679 --> 00:13:16,240
Speaker 2: come into play for a lot of these banks. When

258
00:13:16,360 --> 00:13:19,920
Speaker 2: you think about interest rates potentially adding to the costs

259
00:13:19,960 --> 00:13:22,640
Speaker 2: that some of these firms are facing, that's exactly right.

260
00:13:22,679 --> 00:13:25,160
Speaker 14: I mean, they are under so much pressure to show

261
00:13:25,200 --> 00:13:28,440
Speaker 14: that they've got expenses under control. They're under so much pressure,

262
00:13:28,760 --> 00:13:31,040
Speaker 14: you know, to show profitability, and you know, look, a

263
00:13:31,080 --> 00:13:33,640
Speaker 14: lot of the shares for these banks have been performing

264
00:13:33,679 --> 00:13:37,160
Speaker 14: really well. The narrative around them has been really popular. Actually,

265
00:13:37,240 --> 00:13:39,440
Speaker 14: the gains have been outperforming the broader s and P

266
00:13:39,600 --> 00:13:42,280
Speaker 14: five hundred and so if they can keep up that

267
00:13:42,520 --> 00:13:45,520
Speaker 14: story of you know, expenses under check, that could be

268
00:13:45,559 --> 00:13:48,360
Speaker 14: really positive for them. But also, you know, we've been

269
00:13:48,360 --> 00:13:51,440
Speaker 14: hearing some commentary about how AI could kind of dramatically

270
00:13:51,520 --> 00:13:54,520
Speaker 14: change the role of analysts about these banks, making it

271
00:13:54,559 --> 00:13:57,640
Speaker 14: more efficient, but as you say, also potentially less expensive.

272
00:13:58,360 --> 00:14:01,840
Speaker 2: And I got to wonder how much attention is going

273
00:14:01,880 --> 00:14:04,920
Speaker 2: to be later on this week on Morgan Stanley with

274
00:14:05,000 --> 00:14:10,160
Speaker 2: this report that its wealth unit is under federal regulatory investigation.

275
00:14:10,679 --> 00:14:12,520
Speaker 14: This is not the sort of news that they wanted

276
00:14:12,600 --> 00:14:16,400
Speaker 14: going into their earnings report. And so what we got

277
00:14:16,480 --> 00:14:20,320
Speaker 14: yesterday from a report in the Wall Street Journal was that,

278
00:14:20,680 --> 00:14:25,000
Speaker 14: you know, a broadening caudra of federal agencies are looking

279
00:14:25,080 --> 00:14:28,760
Speaker 14: into controls to prevent money laundering at Morgan Stanley. And

280
00:14:28,840 --> 00:14:31,160
Speaker 14: so we knew that the FED was looking into this,

281
00:14:31,680 --> 00:14:34,360
Speaker 14: but we what we have been learning is that, you know,

282
00:14:34,360 --> 00:14:37,040
Speaker 14: it is enough. It is a larger group of organizations,

283
00:14:37,080 --> 00:14:40,440
Speaker 14: including the SEC, the Office for the Comptroller, and several

284
00:14:40,720 --> 00:14:44,600
Speaker 14: Treasury offices. And the key question is did Morgan Stanley

285
00:14:44,680 --> 00:14:48,800
Speaker 14: do enough to investigate potentially risky clients. And you know,

286
00:14:49,040 --> 00:14:52,880
Speaker 14: wealth management has become a really important unit for not

287
00:14:52,920 --> 00:14:55,400
Speaker 14: just Morgan Stanley, but for all of these Wall Street banks.

288
00:14:55,400 --> 00:14:57,960
Speaker 14: And one of the big risks is how are you

289
00:14:58,080 --> 00:15:00,800
Speaker 14: looking after who you're letting in to do business with.

290
00:15:01,560 --> 00:15:04,160
Speaker 2: Got about thirty seconds left in terms of the banks

291
00:15:04,200 --> 00:15:06,960
Speaker 2: that are going to be reporting this morning. What is

292
00:15:07,200 --> 00:15:10,000
Speaker 2: the main focus that investors are looking at?

293
00:15:10,480 --> 00:15:13,280
Speaker 14: Yeah, so, you know, definitely net interest income, but also

294
00:15:13,360 --> 00:15:16,960
Speaker 14: investment banking. So we've got JP Morgan coming up, and

295
00:15:17,200 --> 00:15:19,640
Speaker 14: City Group and Wells Fargo, and I think another thing

296
00:15:19,680 --> 00:15:22,120
Speaker 14: that we should really watch out for huge story has

297
00:15:22,160 --> 00:15:26,640
Speaker 14: been commercial real estate. Now sixteen percent of Wells Fargo's

298
00:15:26,960 --> 00:15:29,960
Speaker 14: loan book is commercial real estate, So it'll be really

299
00:15:30,040 --> 00:15:33,120
Speaker 14: really telling to see how they report on that commercial

300
00:15:33,120 --> 00:15:36,200
Speaker 14: real estate front, which has been under so much stress lately.

301
00:15:36,880 --> 00:15:39,800
Speaker 15: This is Bloomberg day Break Today, your morning brief on

302
00:15:39,840 --> 00:15:43,400
Speaker 15: the stories making news from Wall Street to Washington and beyond.

303
00:15:43,680 --> 00:15:46,440
Speaker 1: Look for us on your podcast feed at six am

304
00:15:46,520 --> 00:15:50,200
Speaker 1: Eastern each morning on Apple, Spotify, and anywhere else you

305
00:15:50,240 --> 00:15:51,360
Speaker 1: get your podcasts.

306
00:15:51,520 --> 00:15:54,240
Speaker 15: You can also listen live each morning starting at five

307
00:15:54,280 --> 00:15:56,920
Speaker 15: Am Wall Street Time on Bloomberg eleven three to zero

308
00:15:56,920 --> 00:16:00,400
Speaker 15: in New York, Bloomberg ninety nine to one in Washingtonloomberg

309
00:16:00,440 --> 00:16:03,400
Speaker 15: one oh sixty one in Boston, and Bloomberg nine sixty

310
00:16:03,560 --> 00:16:04,520
Speaker 15: in San Francisco.

311
00:16:04,880 --> 00:16:08,040
Speaker 1: Our flagship New York station is also available on your

312
00:16:08,080 --> 00:16:13,520
Speaker 1: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.

313
00:16:13,560 --> 00:16:16,960
Speaker 15: Listen coast to coast on the Bloomberg Business app, SERIUSXM,

314
00:16:17,080 --> 00:16:21,360
Speaker 15: the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager.

315
00:16:21,120 --> 00:16:24,240
Speaker 1: And I'm Karen Moscow. Join us again tomorrow morning for

316
00:16:24,400 --> 00:16:26,880
Speaker 1: all the news you need to start your day right

317
00:16:26,920 --> 00:16:28,600
Speaker 1: here on Bloomberg Daybreak