Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan
Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're
Speaker 1: following today.
Speaker 2: Karen, we kick off with earning season. We hear from
Speaker 2: the first of the big banks today, JP Morgan, Chase, Citygroup,
Speaker 2: and Wells Fargo All report. Bloomberg Wall Street correspondent Shanalie
Speaker 2: Basic says inflation will affect the results.
Speaker 3: On one hand, it's kept interest rates higher for longer,
Speaker 3: and it's meant that potentially net interest income could come
Speaker 3: in higher this year than initially expected. Investors will be
Speaker 3: watching out for whether JP Morgan in particular will raise
Speaker 3: or keep their guidance for net interest income. On the
Speaker 3: other hand, inflation keeps costs high for these banks, and
Speaker 3: the likes of Citygroup, Wells Fargo, and Bank of America
Speaker 3: will be watched closely on how they're keeping a handle
Speaker 3: on those costs and what it means for their head
Speaker 3: count in New York. Shanali Basic Bloomberg.
Speaker 1: Rat All right, chan Ellie, thank you. One other note
Speaker 1: on the banking industry, Morgan Stanley dropped more than five
Speaker 1: percent in a report. US regulators are scrutinizing the firm's
Speaker 1: efforts to prevent potential money laundering by wealthy clients. The
Speaker 1: Wall Street Journal says the security is in Exchange Commission,
Speaker 1: the Office of the Controller of the Currency and other
Speaker 1: Treasury Department of fishes are all looking into the issue.
Speaker 1: Bloomberg Intelligences Elliott Stein says the investigation has been in
Speaker 1: the works for some time.
Speaker 4: We already knew from November that the Federal Reserve was
Speaker 4: investigating Morgan Stanley on this very issue. This story suggests
Speaker 4: that the probe is a little broader and other agencies
Speaker 4: are looking to including the SEC, the ROCC and Sert's
Speaker 4: you know it's more than just the Fed right now.
Speaker 1: And Bloomberg's elliott Stein says. A Morgan Stanley spokesperson declined
Speaker 1: to comment on the story.
Speaker 5: Well Karen.
Speaker 2: Economists at Deutsche Bank and Bank of America are commenting,
Speaker 2: joining the growing crowd of forecasters dialing back expectations on
Speaker 2: interest rate cuts in the US. Details on that from
Speaker 2: Bloomberg's Charlie Pellett.
Speaker 6: The move came after the consumer price index rows at
Speaker 6: a faster than expected pace for a third straight month.
Speaker 6: Strategists at Deutsche Bank and Bank of America now predict
Speaker 6: that the Federal Reserve will ease policy just once this year,
Speaker 6: in December. That is a sharp reduction in previous forecast
Speaker 6: from both firms, which each previously saw the Federal Reserve
Speaker 6: beginning to ease policy starting in June. In New York,
Speaker 6: Charlie Pellett Bloomberg Radio.
Speaker 1: All right, Charlie, thanks, We'll be head to Europe now.
Speaker 1: After a mild recession, the UK economy grew for a
Speaker 1: second month, and we get the latest from Bloomberg's Ewen
Speaker 1: Pots in London ew.
Speaker 7: Karenon Nathan UK GDP grew zero point one percent in February,
Speaker 7: with January's figure revised up to an increase of zero
Speaker 7: point three percent. Both manufacturing and services came in stronger
Speaker 7: than expected. The construction was weaker, blamed on very wet weather.
Speaker 7: The figures add to evidence the British economy is gathering
Speaker 7: momentum after sliding into a shallow technical recession in the
Speaker 7: second half.
Speaker 4: Of last year.
Speaker 7: In London, I'm you and pot Splinberg Radio, okay you.
Speaker 5: And thank you.
Speaker 2: Moving to the commodity sector, the mad rush into gold
Speaker 2: continues Earlier this morning for the first time ever. Spot
Speaker 2: gold rose above twenty four hundred dollars an ounce, heightened
Speaker 2: Middle East tensions and the outlook from auditary policy of
Speaker 2: fueled these gains. Other commodities are also on the move.
Speaker 2: This morning, silver hit its highest level in more than
Speaker 2: three years. Copper is at its best since June of
Speaker 2: twenty twenty two.
Speaker 1: Well, we're also keeping an eye on oil on Nathan
Speaker 1: After a bearish new report on creude demand, the International
Speaker 1: Energy Agency is cutting its forecast for this year and next,
Speaker 1: predicting demand growth of just one point one million barrels
Speaker 1: a day in twenty twenty five. That's about a million
Speaker 1: less than the increased scene by opek. IA is also
Speaker 1: warning that persistent Ukrainian drone attacks on Russian oil refineries
Speaker 1: could disrupt the global market. Checking nimex crewede oil, it's
Speaker 1: up one and a quarter percent. It's at eighty six
Speaker 1: dollars eight cents a barrel, while Brent is it ninety
Speaker 1: dollars sixty seven and sense well, this.
Speaker 2: Can affect the oil market care and the Biden administration's
Speaker 2: planning a sweeping effort to block Arctic drilling. More on
Speaker 2: that from Bloomberg said Baxter.
Speaker 8: A century ago, the US set aside twenty three million
Speaker 8: acres of Alaska's North Slope to serve as an emergency
Speaker 8: oil supply. Now, President Biden is moving to block any
Speaker 8: oil and gas development across roughly half of it. The
Speaker 8: administration says the effort will boost land conservation and fight
Speaker 8: climate change. The oil industry says the plan is more
Speaker 8: expansive than initially thought and will make it almost impossible
Speaker 8: to build another megaproject in the region. The companies say
Speaker 8: they have recently made large discoveries which would yield supplies
Speaker 8: for decades to come. At Baxter Bloomberg Radio, All right.
Speaker 1: Ed, thanks so. President Biden is also making another move
Speaker 1: to tackle student debt. He's forgiving loans for about two
Speaker 1: hundred and seventy seven thousand Americans, most of them enrolled
Speaker 1: in the government's Safe program, which promises to cancel dead
Speaker 1: after at least ten years of her payments. This move
Speaker 1: will type away about seven point four billion dollars in
Speaker 1: federal student debt. Earlier this week, President Biden announced a
Speaker 1: plan B to forgive loans for more than twenty five
Speaker 1: million borrowers. That move is likely to face court challenges.
Speaker 2: In company news, Karen, Apple is preparing to overhaul its
Speaker 2: entire Mac computer line with a new set of in
Speaker 2: house processors designed to highlight artificial intelligence. Sources say. The
Speaker 2: tech giants also nearing production of its next generation chip,
Speaker 2: the M four processor. Bloomberg's Mark German says this news
Speaker 2: is more to do with AI than the computers.
Speaker 9: It's not necessarily the MAX themselves. Obviously, MAX are a
Speaker 9: small portion of the overall revenue base for Apple on
Speaker 9: an annual basis, something around ten percent, and I'm not
Speaker 9: sure that any investor believes that's going to skyrocket to
Speaker 9: doubling revenue or even going a third hire. I think
Speaker 9: it's the focus on AI. I think that investors are
Speaker 9: seeing that Apple's trying to push artificial intelligence to every
Speaker 9: nook and cranny. It could across the company.
Speaker 2: And bloom Grgsmark German says Apples aiming to release the
Speaker 2: updated MAX beginning late this year and extending into early
Speaker 2: next well.
Speaker 1: Nathan Samsung is preparing to take the wraps off of
Speaker 1: forty four billion dollar investment in US chip making as
Speaker 1: soon as next week. It's a signature project in Washington's
Speaker 1: broader effort to bring semiconductor production back to America. Sources
Speaker 1: say the world's biggest memory chip maker plans to outline
Speaker 1: the project in Texas alongside Commerce Secretary Gina Ramondo.
Speaker 2: And welcome to the club. Amazon, the e commerce and
Speaker 2: cloud computing giant, is trading at a record Amazon is
Speaker 2: the last of the big five US tech firms to
Speaker 2: reach an all time high in the rebound from the
Speaker 2: post pandemic sell off. In a bid to win over investors,
Speaker 2: Amazon is slashed costs and restructured its business. Its efforts
Speaker 2: to streamline operations have helped to boost profits and win
Speaker 2: over shareholders.
Speaker 1: And it's time now for a look at some of
Speaker 1: the other stories making news in New York and around
Speaker 1: the world. And from that we're joined by Bloomberg's Michael Barr. Michael,
Speaker 1: good morning, Good morning Karen.
Speaker 5: Today the House will vote on reauthorizing the Foreign Intelligence
Speaker 5: Surveillance Act. Earlier this week, House Republicans blocked FISA from
Speaker 5: being renewed after former President Trump pressed them to kill it,
Speaker 5: claiming it was used to spy on his campaign. Yesterday,
Speaker 5: FBI Director Christopher Ray talked about ongoing threats the US
Speaker 5: faces and urged Congress to renew it.
Speaker 10: Failure to reauthorize seven two, or gutting it with some
Speaker 10: new kind of warrant requirement would be dangerous and put Americans'
Speaker 10: lives at risk.
Speaker 5: FBI Director Ray testified at a House subcommittee hearing on
Speaker 5: the fiscal year twenty twenty five budget requests for the bureau.
Speaker 5: The NYPD has ramped up security around the courthouse where
Speaker 5: jerry selection is set to start Monday in Manhattan. In
Speaker 5: former President Donald Trump's hush money trial, the presumpt of
Speaker 5: Republican presidential nominee as pleaded not guilty. The proceedings present
Speaker 5: his historic challenge for the court and the lawyers, including
Speaker 5: finding prospective jurors who can be impartial. Police. A part
Speaker 5: of New York City will be frozen during the trial.
Speaker 5: The death of O. J. Simpson reminded America about the
Speaker 5: murder victims in the infamous case his ex wife, Nicole
Speaker 5: Brown Simpson and her friend Ronald Goldman. Kat o'kaalin, Simpson's
Speaker 5: former house guest, who served as a witness in the
Speaker 5: nineteen ninety five murder trial, issued a video statement to.
Speaker 11: The family of the beautiful Nicole Brown Simpson, May we
Speaker 11: always cherish her memories. Nicole was a beacon of light
Speaker 11: that burned bright. May we never forget her.
Speaker 5: Meanwhile, Simpson died without having paid the lion's share of
Speaker 5: thirty three point five million dollar judgment. The civil jury
Speaker 5: in nineteen ninety seven awarded it to the families of
Speaker 5: his ex wife and Goldman. The Goldman and Brown families
Speaker 5: could be at the front of the line to get
Speaker 5: paid whatever Simpson left behind. President Joe Biden has added
Speaker 5: more China these companies and individuals to an export blacklist
Speaker 5: than any US administration. The Commerce Department added six Chinese
Speaker 5: companies to its entity list yesterday, bringing the tally of
Speaker 5: new targets during the Biden administration to three hundred and nineteen.
Speaker 5: Global News twenty four hours a day and whenever you
Speaker 5: want it with the Bloomberg News Now Michael Barr and
Speaker 5: this is Bloomberg Karen, all right.
Speaker 1: Michael Barr, thank you, and it is time now for
Speaker 1: the Bloomberg Sports Update with John stash Hour.
Speaker 12: John, thanks Garrets by the early rain, they got most
Speaker 12: of the Masters opening round in. There are some golfers,
Speaker 12: including Tiger Woods. You need to come back early this
Speaker 12: morning to finish it up before playing round two, Tiger
Speaker 12: was steady one under part through thirteen holes, the leader
Speaker 12: with a seven hundred and sixty five racing Deshambo.
Speaker 13: It's always great getting off the hot start three under
Speaker 13: through first three holes, kind of get you settled. I
Speaker 13: knew it was going to be a tough day today
Speaker 13: with the wind and even tomorrow, so a lot of
Speaker 13: patient this is required around this golf course and making
Speaker 13: sure you're just stroking it on your line, putting a
Speaker 13: good hitting good iron shots and driving it well.
Speaker 12: And he drives it farther than pretty much anyone. World
Speaker 12: number one. Scottie Scheffler never seems to have a bad round.
Speaker 12: He's one shot behind Rory McElroy, shot one under defending
Speaker 12: champ John Rahm one over the Knicks in Boston, meaningless
Speaker 12: game for the Celtics. They've clinched home court in the playoffs,
Speaker 12: but they did use all their guys and the next
Speaker 12: beat him easily, up by twenty nine going to the
Speaker 12: fourth quarter of the final was one eighteen to one
Speaker 12: oh nine. Jalen Brunson continues his scoring taar thirty nine points.
Speaker 12: He scored thirty five or more and each to the
Speaker 12: last five at the Garden in Philadelphia beat the Rangers
Speaker 12: four to one.
Speaker 5: At Ubs.
Speaker 12: The Islanders now on the verge of making the playoffs
Speaker 12: with a six win in a row, three two in
Speaker 12: overtime over Montreal. Kyle Palmery the game when You Go
Speaker 12: The Devil's won the Capitol's lost Day game for the Mets,
Speaker 12: and in Atlanta, they scored seven runs in the first
Speaker 12: three innings and nine more in the last three a
Speaker 12: sixteen to four ro out of the Braves. Metsri five
Speaker 12: and two. Since that zero to five started, Fenway the
Speaker 12: Orioles with a six ron tenth Denny and Fit used
Speaker 12: a sweep with the Red Sox nine to four. College
Speaker 12: Hockey's frozen four semifinals saw BC shout out Michigan bu
Speaker 12: who's an overtime with Denver BYU basketball coach Mark Pope,
Speaker 12: who with a new coach at Kentucky who we played
Speaker 12: for in the mid nineteen nineties, replaces John Calipari who
Speaker 12: made the surprising move to Arkansas. John Stashedwer Bloomberg Sports, Karen.
Speaker 1: Nathan all Right, John, thank you, and futures are mixed
Speaker 1: s and p futures down a tenth of up percent
Speaker 1: down futures up a tenth of up percent, Naw's day
Speaker 1: futures down three tenths of up percent, and the ten
Speaker 1: year treasury yield four point five four percent.
Speaker 5: Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and.
Speaker 6: Around the world on Bloomberg dot Com and the Bloomberg
Speaker 6: Business app.
Speaker 5: This is Bloomberg Daybreak.
Speaker 2: Good morning, I'm Nathan Hager, and we are getting ready
Speaker 2: for the kickoff of first quarter earning season. The biggest
Speaker 2: Wall Street banks start to open their books before the
Speaker 2: opening bell. JP Morgan, Chase, City Group and Wells Fargo
Speaker 2: will be first out the gate. Joining us now with
Speaker 2: a preview is Bloomberg's Charlie Wells. Charlie, good morning, thanks
Speaker 2: for being with us. Good morning, Thank you so much
Speaker 2: for having me. Big day, Yeah, absolutely, it's a big day.
Speaker 2: So much focus on what these higher for longer interest rates,
Speaker 2: this prospect for them, is going to mean for these
Speaker 2: banks net interest income outlook.
Speaker 14: Net interest income, which that you know is the biggest
Speaker 14: source of revenue for these banks, and what a lot
Speaker 14: of executives have been saying late last year was that
Speaker 14: they needed to kind of dampen expectations for the year
Speaker 14: going ahead. But if we enter this world where rates
Speaker 14: are higher for longer, what that could potentially mean is
Speaker 14: that this crucial source of income for these banks could
Speaker 14: be bigger than expected. So what I'm really watching for
Speaker 14: is the potential guidance that some of these executives give.
Speaker 14: Something else that's so important is investment banking revenue. So
Speaker 14: we've heard so much about better news on M and A,
Speaker 14: We've heard so much, you know, about more IPOs. Does
Speaker 14: that translate into these earnings? I think those are two
Speaker 14: key areas to folkocus on today.
Speaker 2: And we did get a little bit of a preview
Speaker 2: from Jamie Diamond, the CEO of JP Morgan Chase the
Speaker 2: annual shareholder letter. A lot of the focus on artificial
Speaker 2: intelligence makes you think about whether efficiencies are going to
Speaker 2: come into play for a lot of these banks. When
Speaker 2: you think about interest rates potentially adding to the costs
Speaker 2: that some of these firms are facing, that's exactly right.
Speaker 14: I mean, they are under so much pressure to show
Speaker 14: that they've got expenses under control. They're under so much pressure,
Speaker 14: you know, to show profitability, and you know, look, a
Speaker 14: lot of the shares for these banks have been performing
Speaker 14: really well. The narrative around them has been really popular. Actually,
Speaker 14: the gains have been outperforming the broader s and P
Speaker 14: five hundred and so if they can keep up that
Speaker 14: story of you know, expenses under check, that could be
Speaker 14: really positive for them. But also, you know, we've been
Speaker 14: hearing some commentary about how AI could kind of dramatically
Speaker 14: change the role of analysts about these banks, making it
Speaker 14: more efficient, but as you say, also potentially less expensive.
Speaker 2: And I got to wonder how much attention is going
Speaker 2: to be later on this week on Morgan Stanley with
Speaker 2: this report that its wealth unit is under federal regulatory investigation.
Speaker 14: This is not the sort of news that they wanted
Speaker 14: going into their earnings report. And so what we got
Speaker 14: yesterday from a report in the Wall Street Journal was that,
Speaker 14: you know, a broadening caudra of federal agencies are looking
Speaker 14: into controls to prevent money laundering at Morgan Stanley. And
Speaker 14: so we knew that the FED was looking into this,
Speaker 14: but we what we have been learning is that, you know,
Speaker 14: it is enough. It is a larger group of organizations,
Speaker 14: including the SEC, the Office for the Comptroller, and several
Speaker 14: Treasury offices. And the key question is did Morgan Stanley
Speaker 14: do enough to investigate potentially risky clients. And you know,
Speaker 14: wealth management has become a really important unit for not
Speaker 14: just Morgan Stanley, but for all of these Wall Street banks.
Speaker 14: And one of the big risks is how are you
Speaker 14: looking after who you're letting in to do business with.
Speaker 2: Got about thirty seconds left in terms of the banks
Speaker 2: that are going to be reporting this morning. What is
Speaker 2: the main focus that investors are looking at?
Speaker 14: Yeah, so, you know, definitely net interest income, but also
Speaker 14: investment banking. So we've got JP Morgan coming up, and
Speaker 14: City Group and Wells Fargo, and I think another thing
Speaker 14: that we should really watch out for huge story has
Speaker 14: been commercial real estate. Now sixteen percent of Wells Fargo's
Speaker 14: loan book is commercial real estate, So it'll be really
Speaker 14: really telling to see how they report on that commercial
Speaker 14: real estate front, which has been under so much stress lately.
Speaker 15: This is Bloomberg day Break Today, your morning brief on
Speaker 15: the stories making news from Wall Street to Washington and beyond.
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Speaker 1: here on Bloomberg Daybreak