WEBVTT - Bloomberg Daybreak: April 26, 2022 - Hour 2 (Radio) 0:00:02.720 --> 0:00:06.160 Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg 0:00:06.200 --> 0:00:10.600 Daybreak for Tuesday, April two. Coming up this hour, Elon 0:00:10.680 --> 0:00:14.280 Musk pulls off one of the biggest leveraged buyouts in history. 0:00:14.320 --> 0:00:17.720 We have team coverage of his Twitter takeover, Microsoft and 0:00:17.760 --> 0:00:21.320 Apple leave the earnings parade today, and Russia's foreign minister 0:00:21.440 --> 0:00:25.000 warns the risk of nuclear war can't be underestimated. Resident 0:00:25.000 --> 0:00:28.160 Trump's legal troubles continue with New York's a G plus. 0:00:28.200 --> 0:00:31.200 The southern border remains closed for migrants after a judge 0:00:31.320 --> 0:00:34.519 kept titled forty two in place. On Michael barn More Ahead, 0:00:35.040 --> 0:00:37.960 I'm John stand Sports. The next season is over, swept 0:00:37.960 --> 0:00:40.280 by the Celtics and ninthin rally for the Mets to 0:00:40.320 --> 0:00:45.760 win in St. Louis. That's all s traded ahead on 0:00:45.840 --> 0:00:49.920 Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg 0:00:50.080 --> 0:00:54.080 nineteen nine one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.360 --> 0:00:59.000 Bloomberg nine sixties, and Francisco Sirius x M one nine team, 0:00:59.040 --> 0:01:01.920 and around the world on Bloomberg Radio dot Com and 0:01:02.080 --> 0:01:08.759 via the Bloomberg Business App. Good morning, I'm Nathan Hagar 0:01:09.160 --> 0:01:11.920 and I'm Karen Moscow and US DOT Index futures are 0:01:12.000 --> 0:01:14.200 lower this morning. We are coming up to six o 0:01:14.319 --> 0:01:16.040 one on Wall Street, and we checked the markets every 0:01:16.040 --> 0:01:19.560 fifteen minutes throughout the trading day. On Bloomberg, SNP Future 0:01:19.640 --> 0:01:21.680 is down ten points this morning. Down Future is down 0:01:21.760 --> 0:01:24.560 eighty eight. NAST day futures down thirty three ten. Your 0:01:24.600 --> 0:01:27.360 Treasury up eight thirty seconds, held two points seven eight 0:01:27.360 --> 0:01:29.399 percent in the yield and the two year two point 0:01:29.440 --> 0:01:32.200 five nine percent, and I'm ex screwed Oil is down 0:01:32.200 --> 0:01:35.080 three quarters of a percent, Nathan Karen. We begin this 0:01:35.120 --> 0:01:38.320 morning with one of the biggest leveraged buyouts in history. 0:01:38.319 --> 0:01:41.559 Elon Musk has clinched a forty four billion dollar deal 0:01:41.640 --> 0:01:45.240 to take Twitter private. Investors will receive fifty four dollars 0:01:45.280 --> 0:01:48.040 and twenty cents for each Twitter share they own. We 0:01:48.120 --> 0:01:50.240 have team coverage for you this morning, starting with Ed 0:01:50.320 --> 0:01:53.280 Ludlow in our Bloomberg nine sixty newsroom in San Francisco. 0:01:53.760 --> 0:01:56.760 Ed has more on four changes Musk may make to 0:01:56.800 --> 0:02:00.240 the platform going forward. It's four main things and edit 0:02:00.320 --> 0:02:03.440 button that is time sensitive. He's talks about that removing 0:02:03.520 --> 0:02:07.000 bots from the platform. He's talks about that open sourcing 0:02:07.040 --> 0:02:09.799 the algorithm and looking at the lying technology for Twitter, 0:02:10.080 --> 0:02:12.080 and then finally he's going to look at the issues 0:02:12.120 --> 0:02:14.520 of vans. Elon Musk basically framed it as being he 0:02:14.639 --> 0:02:17.119 was more in favor of time outs than all out 0:02:17.160 --> 0:02:19.959 bands on the platform, Bloomberg said. Ludlow says the deal 0:02:20.000 --> 0:02:22.840 was approved unanimously by Twitter's board. It's expected to be 0:02:22.880 --> 0:02:26.119 completed later this year. So where will Elon Musk get 0:02:26.120 --> 0:02:29.160 the cash to buy Twitter? Bloomberg's Renida Young continues our 0:02:29.200 --> 0:02:31.280 team courbadge and joins us live in New York with 0:02:31.360 --> 0:02:33.240 that part of the story. Good Morning Ray to Good 0:02:33.240 --> 0:02:36.720 morning Karen. It's the twenty one billion dollar mystery. Now 0:02:36.720 --> 0:02:39.400 there's little doubt Elon Musk can come up with the money. 0:02:39.560 --> 0:02:42.400 After all, the Bloomberg Billionaires Index shows he's the world's 0:02:42.480 --> 0:02:45.360 richest person with a fortune of two hundred fifty seven 0:02:45.360 --> 0:02:49.079 billion dollars. But Bloomberg estimates show Musk has just about 0:02:49.120 --> 0:02:52.320 three billion in cash and somewhat liquid assets, So that 0:02:52.440 --> 0:02:55.720 leaves him with at least three options for financing. One 0:02:55.760 --> 0:02:58.600 way find other investors who buy into his vision, and 0:02:58.639 --> 0:03:01.600 he's already hinted at this past ability. Another, he could 0:03:01.639 --> 0:03:03.760 sell some of his steak in Tesla, but that will 0:03:03.840 --> 0:03:06.760 likely put the stock price at risk. And Thirdly, since 0:03:06.880 --> 0:03:10.040 Musk is likely even richer than calculated by the Bloomberg 0:03:10.080 --> 0:03:13.320 Billionaires Index, he might not even need new sources of 0:03:13.360 --> 0:03:17.080 funding to cover the twenty one billion dollars. Live in 0:03:17.120 --> 0:03:19.600 New York. I'm gonna need a Young Bloomberg daybreak. We 0:03:19.680 --> 0:03:22.079 need a thanks now. Some lawmakers are pushing back against 0:03:22.120 --> 0:03:25.080 the buyout. Senator Elizabeth Warren is calling Musk's Twitter deal 0:03:25.240 --> 0:03:28.640 dangerous At Baxter continues our team coverage from our Bloomberg 0:03:28.720 --> 0:03:31.880 nine sixty news room in San Francisco. Musk and Warren 0:03:32.000 --> 0:03:35.280 are familiar foes. They've had battles over a number of issues, 0:03:35.320 --> 0:03:38.320 but Warren's verbiage here is very strong. She says the 0:03:38.400 --> 0:03:42.240 deal is dangerous for our democracy. She says, quote billionaires 0:03:42.240 --> 0:03:44.640 like Elon Musk played by a different set of rules 0:03:44.640 --> 0:03:48.800 than everyone else, accumulating power for their own gain. It's 0:03:48.920 --> 0:03:52.280 dangerous because one billionaire decides how millions of people will 0:03:52.320 --> 0:03:55.560 have an opportunity to communicate with each other. The deal 0:03:55.600 --> 0:03:59.119 has potential roadblocks, beginning with the SEC but this one 0:03:59.160 --> 0:04:02.680 threatens to be very heated in San Francisco. I'm at 0:04:02.680 --> 0:04:04.640 Baxter Bloomberg Gay break all right, and thanks so I 0:04:04.720 --> 0:04:06.680 have more analysis on the Musk Tritter deal in a 0:04:06.680 --> 0:04:10.280 few minutes, and we speak with Bloomberg Quick takes Alex Webb. Well. 0:04:10.280 --> 0:04:12.760 Now to the latest on the war in Ukraine. Nathan. 0:04:12.840 --> 0:04:16.560 Russian Foreign Minister Sergei Lavrov warns the risk of nuclear 0:04:16.600 --> 0:04:20.000 war is real and cannot be underestimated. That's after Defense 0:04:20.000 --> 0:04:23.280 Secretary Lloyd Austin said the US wants to see Russian 0:04:23.320 --> 0:04:27.440 forces weakened in Ukraine. This morning, Secretary Austin is pledging 0:04:27.440 --> 0:04:31.360 continued US support. Ukraine has done a magnificent job defending 0:04:31.400 --> 0:04:37.159 its sovereignty against Russia's unprovoked invasion, and Defense Secretary and 0:04:37.240 --> 0:04:41.000 skill will go down in military history. And Defense Secretary 0:04:41.080 --> 0:04:44.840 Lloyd Austin spoke this morning from Ramstein Air Base in Germany. Meantime, 0:04:44.880 --> 0:04:47.599 the White House says President Biden also working on his 0:04:47.640 --> 0:04:50.680 next request for Ukraine eight to Congress. Theah Whinehouse is 0:04:50.720 --> 0:04:53.400 also taking action on COVID care, and the Biden administration 0:04:53.440 --> 0:04:57.120 plans to allow all pharmacies towarder Finser's COVID nineteen therapy 0:04:57.160 --> 0:04:59.239 pill as it looks to boost access to the drug, 0:04:59.320 --> 0:05:02.200 is supplying races. Starting this week, Tens of thousands of 0:05:02.200 --> 0:05:04.680 pharmacies will be able to order the drug since it 0:05:04.720 --> 0:05:08.040 started a pandemic. Nathan, Global events and meetings have gone virtual, 0:05:08.200 --> 0:05:10.240 but now FED chair J Powell is set to hold 0:05:10.240 --> 0:05:13.320 this first in person press conference since Covid emerged. Help 0:05:13.360 --> 0:05:16.039 me live with reporters following the conclusion and next week's 0:05:16.040 --> 0:05:18.600 two day policy meeting well. Inflation will be a main 0:05:18.640 --> 0:05:20.960 focus for how at that news conference. Karen and data 0:05:21.000 --> 0:05:24.360 this morning show prices heading even higher for consumers. According 0:05:24.360 --> 0:05:27.039 to a survey from the National Federation of Independent Business 0:05:27.080 --> 0:05:30.279 for and ten US small businesses planned to raise prices 0:05:30.320 --> 0:05:33.320 by at least ten percent. On Wall Street Today, Nathan, 0:05:33.400 --> 0:05:36.279 we get a clearer picture of how big business is faring. 0:05:36.320 --> 0:05:38.839 Earnings role in this afternoon for a Microsoft and Google, 0:05:38.920 --> 0:05:42.080 we get a preview from Bloomberg's John Tucker. Google parent 0:05:42.120 --> 0:05:45.240 Alphabet has been held by a rebound and digital advertising, 0:05:45.560 --> 0:05:47.760 but the shares of Light and the stock will also 0:05:47.800 --> 0:05:51.560 face some more difficult year over year growth comparison. Analysts 0:05:51.680 --> 0:05:55.720 estimate earnings per share of dollars seventy three cents, down 0:05:55.760 --> 0:05:59.240 two percent from a year earlier. At Microsoft, analysts are 0:05:59.240 --> 0:06:02.520 expending earning for sure of two nineteen, the company may 0:06:02.600 --> 0:06:06.240 report strong cloud results that could more than offset any 0:06:06.279 --> 0:06:10.799 potential weakness in its consumer business. John Tucker, Bloomberg Daybreak, 0:06:10.880 --> 0:06:13.279 All right, John, thank you and crossing the Bloomberg ups 0:06:13.400 --> 0:06:16.760 is first quarter cross profit beating analysts estimates, and PepsiCo's 0:06:16.800 --> 0:06:20.560 organic revenue forecast for the year also beat. Nathan. It's 0:06:20.600 --> 0:06:22.520 also a big day for earnings in Europe, Karen. We 0:06:22.520 --> 0:06:24.640 get the very latest on that with Bloomberg's You and 0:06:24.720 --> 0:06:27.400 Parts in London. Good Morning You, and good morning Nathan 0:06:27.440 --> 0:06:30.200 and Karen. A trio of banking sector beats this morning. 0:06:30.320 --> 0:06:33.360 Ubs riding a trading boom with better than expected profit 0:06:33.440 --> 0:06:35.880 in the first quarter, but the Swiss banks key wealth 0:06:35.920 --> 0:06:39.799 management business hit by slowing clients activity and rising costs. 0:06:40.240 --> 0:06:43.760 Spain's Santane also beating estimates, with the retail banking giants 0:06:43.760 --> 0:06:47.720 geographical reach providing a buffer against growing economic risks, and 0:06:47.880 --> 0:06:50.840 a just BC posting a smaller drop in adjusted pretax 0:06:50.920 --> 0:06:54.480 profit than analysts predicted. Europe's biggest bank reporting lower than 0:06:54.480 --> 0:06:58.239 expected credit loss provisions in London, Immune Parts, Bomberg daybreak, 0:06:58.400 --> 0:06:59.840 All right you and thank you right now. I some 0:07:00.120 --> 0:07:03.080 futures are down nine points down, futures down eighty NASTAC 0:07:03.160 --> 0:07:06.560 futures are lower by thirty one points. The tenure treasury 0:07:06.640 --> 0:07:09.600 is up eight thirty seconds, yield two point seven percent. 0:07:09.960 --> 0:07:12.679 Yield on the two year two point six zero percent. 0:07:12.840 --> 0:07:15.360 Nimex crew down a half percent at ninety eight dollars 0:07:15.440 --> 0:07:18.600 nine cents of barrel. Local headlines in sports. Next, this 0:07:19.080 --> 0:07:24.880 is Bloomberg. Sounds six oh seven on Wall Street. We're 0:07:24.920 --> 0:07:27.120 fifty two degrees in Central Park. We have an accident 0:07:27.160 --> 0:07:30.240 on the eastbound Cross Bronx Expressway at the Deagan. Details 0:07:30.240 --> 0:07:32.720 coming up in traffic. First Michael Barr with more on 0:07:32.800 --> 0:07:34.520 what's going on in New York and around the world. 0:07:34.560 --> 0:07:37.200 Good morning, Michael, Good morning, Nathan. And New York judges 0:07:37.240 --> 0:07:40.400 found former President Donald Trump in contempt of court for 0:07:40.560 --> 0:07:43.880 failing to adequately respond to a subpoena issued by the 0:07:43.960 --> 0:07:47.640 state's attorney general asked part of a civil investigation into 0:07:47.720 --> 0:07:50.560 his business dealings. The judge ordered Trump to pay a 0:07:50.600 --> 0:07:53.720 fine of ten thousand dollars per day. New York Attorney 0:07:53.720 --> 0:07:57.120 General Letitia James had asked the court to hold Trump 0:07:57.120 --> 0:07:59.960 in contempt after he missed a March thirty, first quarter 0:08:00.000 --> 0:08:03.400 imposed deadline to turn over documents. Trump has called her 0:08:03.440 --> 0:08:07.840 investigation of politically motivated which hunt. A federal judge in 0:08:07.880 --> 0:08:11.400 Louisiana has temporarily blocked the Biden administration from lifting the 0:08:11.440 --> 0:08:15.640 border restrictions put in place during the coronavirus pandemic. Title 0:08:15.760 --> 0:08:19.040 forty two was supposed to be lifted on May. The 0:08:19.080 --> 0:08:22.440 temporary restraining order was requested by its twenty one Republican 0:08:22.520 --> 0:08:26.680 led states. Bloomberg political contributor Rick Davis says, it seems 0:08:26.720 --> 0:08:30.520 the Biden administration has bungled its administration policy, and it 0:08:30.640 --> 0:08:33.880 just seems like they haven't really focused on what the 0:08:33.920 --> 0:08:36.480 impact is at the state level. They didn't consult states 0:08:36.520 --> 0:08:39.640 that are impacted by the border, and and now the 0:08:39.640 --> 0:08:42.400 whole thing seems to be adding a lot of confusion. Frankly, 0:08:42.880 --> 0:08:45.480 very reminiscent of the current COVID policy. Whether it just 0:08:45.600 --> 0:08:48.400 doesn't seem to be a strategy and play here. Bloomberg 0:08:48.559 --> 0:08:52.280 political contributor Rick Davis spoke with Abur Washington corresponded Joe 0:08:52.320 --> 0:08:55.320 Matthew on Bloomberg Sound on Catch the program weekdays at 0:08:55.360 --> 0:08:59.079 five pm Eastern on Bloomberg Radio. Workers at a second 0:08:59.120 --> 0:09:02.520 Amazon dot Com warehouse in Staten Island again voting Monday 0:09:02.520 --> 0:09:05.679 on whether to join an upstart union that already won 0:09:05.720 --> 0:09:09.200 a historic election at a nearby facility. Employees at the 0:09:09.240 --> 0:09:12.840 warehouse called l d J five will cast their ballots 0:09:12.880 --> 0:09:15.880 through Friday, with the results expected as early as many seconds. 0:09:16.120 --> 0:09:19.199 Two days before a mother of fourteen children was scheduled 0:09:19.240 --> 0:09:22.840 to die in a Texas death chamber, Melissa Luccio, received 0:09:22.840 --> 0:09:27.040 a last minute reprieve. Supporters of Luccio, accused of killing 0:09:27.040 --> 0:09:30.280 her two year old child, found a forensic expert who 0:09:30.320 --> 0:09:34.000 says her child's fatal injuries were consistent with an accidental fall. 0:09:34.440 --> 0:09:37.440 Luccio's son, John Luccio, We're gonna believe in God, and 0:09:37.440 --> 0:09:39.240 we're gonna continue believe in him and keeping to keep 0:09:39.240 --> 0:09:41.920 our faith up with him in a keep on fighting 0:09:41.920 --> 0:09:44.200 this fight. Will we bring her home. She's no longer 0:09:44.240 --> 0:09:47.200 going to be executed. My mother will be free soon, 0:09:47.679 --> 0:09:50.560 John Luccio says. A court to rule on the new evidence. 0:09:50.720 --> 0:09:53.160 Global News twenty four hours a day on air and 0:09:53.320 --> 0:09:55.960 on Bloomberg Quick Take powered by more than twenty seven 0:09:56.000 --> 0:09:58.720 hundred journalists and analysts more than a hundred twenty countries. 0:09:58.840 --> 0:10:06.320 H Michael Barr, This is Berg, Nathan Thanks Michael almost 0:10:06.320 --> 0:10:08.319 six cent on Wall Street time for the Bloomberg Sports 0:10:08.320 --> 0:10:11.080 that Day with John stanho Al Nathan. This NBA season 0:10:11.120 --> 0:10:12.839 began with high hopes for the New York teams. The 0:10:12.920 --> 0:10:15.679 Knicks were expected to release make the playoffs and Nets 0:10:15.679 --> 0:10:19.120 were expected to compete for the championship. Neither thing happened. 0:10:19.160 --> 0:10:22.280 The Celtics completed the first round sweet for the Nets, 0:10:22.280 --> 0:10:24.640 taking Game four in Brookelyn one sixteen to one twelve 0:10:24.720 --> 0:10:28.920 Jason Tatums twenty nine points. Boston survived Tatum fouling out 0:10:28.920 --> 0:10:31.840 on the fourth quarter. Kevin Durant so quiet the first 0:10:31.920 --> 0:10:34.120 three games of the series, did come alive with thirty 0:10:34.200 --> 0:10:36.480 nine points, but Durant goes out in the first round 0:10:36.880 --> 0:10:38.640 for the first time in his career. He also had 0:10:38.679 --> 0:10:42.079 never gotten swept in a series before k d is signed. 0:10:42.120 --> 0:10:44.640 He should be back in Brooklyn. Tier Herby may not be. 0:10:44.800 --> 0:10:47.720 Who knows about Ben Simmons. He was acquired for James 0:10:47.720 --> 0:10:51.640 Harden and never did play this season. Toronto stayed alive 0:10:51.640 --> 0:10:53.719 at Game five win in Philadelphia, whose lead is now 0:10:53.760 --> 0:10:56.920 three to Dallas beat Utah by five to go up 0:10:56.960 --> 0:11:00.640 three too. In memphisis John Morant named the nbass comproved 0:11:00.720 --> 0:11:03.320 play the Mets in St. Louis, Max Shers are terrific. 0:11:03.840 --> 0:11:06.880 Seven ames, no runs, two hits, ten strikeouts. We got 0:11:06.880 --> 0:11:09.600 no run support, and the Cardinals broke up a scoreless 0:11:09.600 --> 0:11:11.280 game with two runs in the eighth inning. The Mets 0:11:11.280 --> 0:11:14.520 then rallied in the ninth. Diego's ready as pitch, So 0:11:14.520 --> 0:11:17.080 we're gonna ground ball toward first. Cold Schmidt a diving stop. 0:11:17.160 --> 0:11:21.120 Nobody's covering first? What the Diego? Smith? This safe? Big deal? Run? 0:11:21.240 --> 0:11:25.200 Third throw home d safe. The Mets have the lead. 0:11:25.559 --> 0:11:29.320 Dominic Smith comes through off the bench with two outs 0:11:29.320 --> 0:11:31.720 in the top of the dive. CBS had a Brandon 0:11:31.760 --> 0:11:33.959 demo following the two run over, and the Mets improved 0:11:33.960 --> 0:11:36.800 a thirteen and five. They beat the Cardinals five to two. 0:11:37.080 --> 0:11:39.559 Yankeesh's ball the more tonight at the Rangers have any 0:11:39.600 --> 0:11:41.839 hopes of winning the division, they'll need to beat Carolina 0:11:41.960 --> 0:11:45.880 tonight at the Garden. John Stash with Bloomberg Sports. All right, John, 0:11:45.920 --> 0:11:48.200 thanks and just In. Elon Musk has filed an amended 0:11:48.280 --> 0:11:51.000 thirteen D with the Securities and Exchange Commission on Twitter, 0:11:51.040 --> 0:11:53.520 saying he's entered into a new debt commitment letter as 0:11:53.520 --> 0:11:57.040 of April and amended the equity commitment letter to reflect 0:11:57.040 --> 0:12:00.200 the merger. Pack much more on Elon Musk's By out 0:12:00.200 --> 0:12:03.560 of Twitter, we'll be speaking with Alex Webb of Bloomberg Quicktake. 0:12:04.120 --> 0:12:09.480 This is Bloomberg Bloomberg eleven three oh weather mostly cloudy today, 0:12:09.559 --> 0:12:11.880 chancefer showers with behind your sixty five degrees that will 0:12:11.880 --> 0:12:15.720 be mostly sunny tomorrow, upper fifties high your fifty five Thursday, 0:12:15.760 --> 0:12:18.320 mostly sunny and breezy by then. Right now fifty two 0:12:18.360 --> 0:12:23.960 and cloudy in Central Park markets. Headlines and breaking news 0:12:24.080 --> 0:12:26.679 twenty four hours a day at Bloomberg dot Com, the 0:12:26.760 --> 0:12:30.199 Bloomberg Business at and at Bloomberg Quick Take. This is 0:12:30.200 --> 0:12:39.559 a Bloomberg Business lash and I'm Cameron Moscow and US 0:12:39.600 --> 0:12:43.160 stock index futures are lower ahead of a slew of earnings. 0:12:43.200 --> 0:12:45.679 We already heard from PepsiCo this morning. At raised its 0:12:45.679 --> 0:12:50.240 sales growth estimates for the year as consumers return to bars, restaurants, 0:12:50.240 --> 0:12:54.160 and events due to easing pandemic restrictions, and UPS reported 0:12:54.160 --> 0:12:57.719 a first quarter profit that beat analysts estimates, but US 0:12:57.760 --> 0:13:00.040 stock index futures again are moving lower with US and 0:13:00.120 --> 0:13:03.000 Key Future is down fourteen points down, futures down a 0:13:03.080 --> 0:13:06.600 hundred fifteen NSDAG futures down forty eight. Ten year treasury 0:13:06.679 --> 0:13:09.240 up eight thirties seconds, YELD two point seven eight percent. 0:13:09.320 --> 0:13:12.440 That yield on the two year to point six zero percent. 0:13:12.640 --> 0:13:15.240 NIMEX screwed oil is down about half percent or forty 0:13:15.240 --> 0:13:18.320 four cents, and ninety eight dollars ten cents of barrel comics. 0:13:18.400 --> 0:13:21.800 Gold is up half percent or ten dollars ten cents 0:13:21.840 --> 0:13:24.640 at nineteen o six ten. Announced the euro one point 0:13:24.840 --> 0:13:27.400 six eight zero against the dollar, British pound one point 0:13:27.600 --> 0:13:30.800 seven one one, the yen at one seven point eight one, 0:13:31.280 --> 0:13:34.920 and Bitcoin this morning higher by half percent at forty thousand, 0:13:34.920 --> 0:13:37.960 three hundred eighty dollars. That's a bloomberg business flash. Now 0:13:37.960 --> 0:13:40.560 here's muchael bar with more unless going on around the world. 0:13:40.640 --> 0:13:44.040 Muckel Karen, thank you very much. Russian foreign ministers Sergei 0:13:44.120 --> 0:13:48.760 Lavrov warned Ukraine against provoking World War three. Lab Rof 0:13:48.800 --> 0:13:51.120 said on Russian TV that the threat of a nuclear 0:13:51.200 --> 0:13:55.360 conflict should not be underestimated. There's molting pressure on former 0:13:55.400 --> 0:13:58.440 Trump White House Chief of Staff Mark Meadows to turn 0:13:58.480 --> 0:14:02.880 over additional information to Annuary sixth congressional investigators. More than 0:14:02.880 --> 0:14:07.000 two thousands of Meadows text first reported by CNN, have 0:14:07.120 --> 0:14:10.200 now been released. According to the text, some of Donald 0:14:10.240 --> 0:14:13.840 trump staunches allies in Congress wanted him to declare martial 0:14:13.920 --> 0:14:17.080 law to prevent Joe Biden from becoming president. In the 0:14:17.200 --> 0:14:21.080 NBA playoffs, the Celtics eliminated the Nets. Boston beat Brooklyn 0:14:21.360 --> 0:14:24.520 one sixteen, one twelve to sweep the series in four games. 0:14:24.760 --> 0:14:27.720 In MLB, the Mats and Giants won, the Red Sox lost. 0:14:27.960 --> 0:14:30.560 Global news twenty four hours a day on air and 0:14:30.720 --> 0:14:34.360 on Bloomberg Quicktake Power by more than twenty seven hundred 0:14:34.400 --> 0:14:37.520 journalist and analysts more than a hundred twenty countries. Michael 0:14:37.520 --> 0:14:40.440 Barr and this is Bloomberg. Nathan alright, Michael, thank you. 0:14:40.480 --> 0:14:42.840 At six nineteen on Wall Street Live from the Bloomberg 0:14:42.880 --> 0:14:46.200 Interactive Broker Studios. This is Bloomberg Daybreak, and our team 0:14:46.320 --> 0:14:50.280 coverage of Elon Musk's forty four billion dollar buyout of 0:14:50.280 --> 0:14:53.640 Twitter continues. Now we're very pleased to be joined this 0:14:53.680 --> 0:14:57.000 morning by Alex Webb, Bloomberg Quick Take correspondent and tech 0:14:57.040 --> 0:15:00.600 columnists for Bloomberg Opinion. Alex, you have written ex stensively 0:15:00.800 --> 0:15:04.320 about the lead up to this buy out, the potential 0:15:04.440 --> 0:15:07.000 for Elon Musk to take Twitter private, and I guess 0:15:07.040 --> 0:15:10.200 one of the biggest among the many questions that still 0:15:10.280 --> 0:15:13.680 have to be answered is how is Elon Musk going 0:15:13.720 --> 0:15:18.600 to change Twitter. Here's a question that is befuddling a 0:15:18.640 --> 0:15:21.240 lot of us. He look, he's made a few comments 0:15:21.840 --> 0:15:25.320 about the operations of the company. The key things he 0:15:25.360 --> 0:15:27.200 can go in one of two directions. You can go 0:15:27.200 --> 0:15:29.240 in both. There are financial changes he can make to 0:15:29.280 --> 0:15:30.920 improve profit and there are things that he can change 0:15:30.960 --> 0:15:33.320 that suit his own personal agenda. Namely, he talks a 0:15:33.360 --> 0:15:37.360 lot about trying to make it a platform for free 0:15:37.360 --> 0:15:41.960 speech one. But he's also secured debt financing from a 0:15:42.040 --> 0:15:45.200 lot of reputable banks, and he made presentations, has been 0:15:45.200 --> 0:15:47.400 reported by our colleagues and Blue Veg News, he made 0:15:47.400 --> 0:15:50.160 presentations which convince them that he does have a financial 0:15:50.160 --> 0:15:52.040 model for the company. So then you have to look 0:15:52.040 --> 0:15:53.520 at that and go, well, is it about adding more 0:15:53.600 --> 0:15:55.800 users or is it about extracting more value from the 0:15:55.880 --> 0:15:58.440 users that you have. The second piece is the easier 0:15:58.520 --> 0:16:00.720 leave at to pull. You've already got that audience, and 0:16:00.760 --> 0:16:02.840 so you've got to think about whether it's a subscription 0:16:02.880 --> 0:16:06.720 model or just extracting more advertising value from those users. 0:16:07.600 --> 0:16:13.640 We've seen another of the mega millionaire billionaires, Jeff Bezos 0:16:13.280 --> 0:16:16.240 uh sort of taking a swipe at Elon Musk on 0:16:16.240 --> 0:16:19.360 Twitter after this news came out. Kind of raised maybe 0:16:19.360 --> 0:16:22.000 an ad left field question for me. I wonder if 0:16:22.080 --> 0:16:25.560 there's a parallel to be drawn here between Jeff Bezos 0:16:25.720 --> 0:16:29.080 buying out the Washington Post and Elon Musk buying out 0:16:29.120 --> 0:16:35.000 Twitter sort of a media play as sort of a 0:16:35.040 --> 0:16:39.240 free speech platform in that to that extent, So I 0:16:39.280 --> 0:16:41.920 think on one level there are parallels, namely that you 0:16:41.920 --> 0:16:45.160 know a lot of billionaires by big media assets. We've 0:16:45.160 --> 0:16:48.280 got Time magazine, which is owned by Mark Bennioff, obviously 0:16:48.480 --> 0:16:51.800 Bezos of the Washington Post, the John Edwards zones at 0:16:51.800 --> 0:16:56.560 the Boston Globe, and Twitter is essentially the biggest available 0:16:57.360 --> 0:17:02.800 media platform media outlet. There's a substantial difference, though Bezos 0:17:02.840 --> 0:17:06.399 committed to not intervening editorially with The Washington Post and certainly, 0:17:06.400 --> 0:17:08.600 looking from the outside, it appears that he has held 0:17:08.640 --> 0:17:11.520 true to that promise. Elon from the get go has 0:17:11.520 --> 0:17:14.000 made it very clear that he intends to intervene with 0:17:14.040 --> 0:17:16.359 the way that Twitter is run, and if it's all 0:17:16.359 --> 0:17:18.800 about free speech, with the politics of it. So there 0:17:18.840 --> 0:17:21.480 are similarities, but there is that crucial difference. Yeah, we've 0:17:21.520 --> 0:17:27.720 certainly seen that influence playing out on Elon Musk's Twitter 0:17:27.800 --> 0:17:30.480 feed itself. And I wonder if we could sort of 0:17:30.600 --> 0:17:35.080 glean from the many tweets that Elon Musk has put 0:17:35.119 --> 0:17:38.960 out there, which ideas is he serious about, which ones 0:17:39.080 --> 0:17:41.520 is he just sort of putting out there just to 0:17:41.560 --> 0:17:45.919 get people talking. The split The free speech one is 0:17:46.119 --> 0:17:48.520 clearly top of the list. Quite what that entails, you know, 0:17:48.720 --> 0:17:51.119 the proof is in the pudding. Doesn't mean Donald Trump 0:17:51.200 --> 0:17:53.880 comes back onto the platform. It would certainly seem that way. 0:17:54.320 --> 0:17:57.920 But there are again important caveats here. There are a 0:17:58.040 --> 0:18:01.639 whole raft of regulations in the works around the world. 0:18:01.720 --> 0:18:04.520 Just last week, the European Parliament agreed on a set 0:18:04.520 --> 0:18:10.159 of proposals to limit or or place important checks and 0:18:10.160 --> 0:18:13.840 measures over what can be posted on social media, damaging content, 0:18:13.920 --> 0:18:17.000 criminal content, online harms, similar stuff is in the works 0:18:17.040 --> 0:18:19.679 in the US and in the UK that will limit 0:18:19.720 --> 0:18:23.520 his ability to do to be a true free speech absolutist. 0:18:24.400 --> 0:18:27.399 The operational stuff, he has not really talked about how 0:18:27.440 --> 0:18:30.800 to make it more profitable than it is right now. Now, clearly, 0:18:30.840 --> 0:18:33.399 if it's a private company, the impetus for growth is 0:18:33.400 --> 0:18:35.080 not going to be as high, but he will need 0:18:35.160 --> 0:18:37.800 to be repaying banks for the debt that he's raised. 0:18:38.160 --> 0:18:41.000 That means that he needs to generate some cash flows, 0:18:41.080 --> 0:18:44.240 and there are ways you can do that by, for example, 0:18:44.320 --> 0:18:47.840 increasing the odd exposures of people you already have, or 0:18:47.880 --> 0:18:50.520 as I said, perhaps thinking about a subscription model where 0:18:50.760 --> 0:18:53.320 that is harder to generate growth, but it can give 0:18:53.400 --> 0:18:56.720 you more predictable cash flows, which is something that of 0:18:56.760 --> 0:18:59.960 course debt holders like. And only about thirty seconds left here, 0:19:00.000 --> 0:19:02.240 Which do you think is the likeliest option for Elon 0:19:02.320 --> 0:19:05.399 Musk to try to make Twitter more profitable if that 0:19:05.600 --> 0:19:09.359 is his motivation? Well, in his support of Elon and 0:19:09.560 --> 0:19:12.000 Jack Dorsey, the former CEO of his perceived its rain, 0:19:12.080 --> 0:19:15.240 very close to him, said he didn't he'd always regretted 0:19:15.280 --> 0:19:17.000 the fact that it was an advertising base model, so 0:19:17.040 --> 0:19:18.840 that would seem suggests it's going to be something else 0:19:19.200 --> 0:19:22.040 that might mean. Therefore, the subscriptions are the path that 0:19:22.080 --> 0:19:25.159 he picks. Very interesting as always, Alex. Great to have 0:19:25.200 --> 0:19:27.840 you on with us, Thanks for this. Alex Webb is 0:19:28.119 --> 0:19:30.679 tech calumnist for Bloomberg Opinion. You can catch him on 0:19:30.800 --> 0:19:34.080 Bloomberg Quick Take as well. He's a correspondent there, and 0:19:34.119 --> 0:19:37.840 we will continue our team coverage of Elon Musk's Twitter 0:19:37.880 --> 0:19:41.679 buy out as we await big tech earnings. Are five 0:19:41.760 --> 0:19:43.520 things you need to know to start your day. Just 0:19:43.600 --> 0:19:47.720 ahead here on Bloomberg Daybreak. That's as we watch earnings 0:19:47.760 --> 0:19:52.840 from General Electric across the Bloomberg terminal. Profit beat estimates, 0:19:52.920 --> 0:19:57.440 but the outlook has come in shy of analysts estimates. 0:19:57.440 --> 0:20:01.080 Will be watching GE shares throughout the morning here on 0:20:01.320 --> 0:20:09.680 Bloomberg Daybreak, Bloomberg eleven three oh weather, mostly cloudy, chance 0:20:09.760 --> 0:20:12.639 for showers today with a hin your sixty five, upper fifties, 0:20:12.680 --> 0:20:16.400 mostly sunny Tomorrow, mostly sunny, breezy, mid fifties by Thursday. 0:20:16.480 --> 0:20:23.040 Right now fifty two degrees in Central Park. Broadcasting live 0:20:23.200 --> 0:20:27.159 from the Bloomberg Interactive Broker Studio in New York. Bloomberg 0:20:27.160 --> 0:20:30.520 e Living Freedom to Washington d c Bloomberg ninety one 0:20:30.640 --> 0:20:33.879 to Boston, Bloomberg what A six one to San Francisco 0:20:33.960 --> 0:20:37.159 Bloomberg Home sixty to the country, Sirius xm J A 0:20:37.240 --> 0:20:40.400 one nine and around the globe the Bloomberg business at 0:20:40.520 --> 0:20:50.320 and Bloomberg Radio dot com. This is Bloomberg Daybreak six 0:20:50.359 --> 0:20:52.879 thirty on Wall Street. Good morning, I'm Nathan Hagar and 0:20:52.960 --> 0:20:55.560 I'm Kard Moscow, and we're just about three hours away 0:20:55.600 --> 0:20:57.600 from the open of US trading. Time for the five 0:20:57.640 --> 0:20:59.720 things you need to notice start your day. Brought to 0:20:59.840 --> 0:21:04.240 you by Interactive Brokers. Interacted Brokers charges margin loan rates 0:21:04.280 --> 0:21:07.040 from zero point three percent to one point three percent, 0:21:07.320 --> 0:21:10.080 rates subject to change. Learn more at ib kr dot com. 0:21:10.119 --> 0:21:13.800 Slash compare up First, Elon musk Is clinched a forty 0:21:13.800 --> 0:21:16.720 four billion dollar deal to take Twitter private and San 0:21:16.760 --> 0:21:20.760 Francisco Bloomberg's and Ludlow has more on what's next for shareholders. 0:21:20.960 --> 0:21:24.359 Each investor will receive fifty four dollars and twenty cents 0:21:24.359 --> 0:21:26.800 for each share that they hold. The deal has the 0:21:26.880 --> 0:21:30.520 unanimous backing of Twitter's board, and the transaction is expected 0:21:30.560 --> 0:21:32.880 to close by the end of this year. The deal 0:21:32.960 --> 0:21:36.240 also includes a provision where Elon Mousque, according to sources, 0:21:36.320 --> 0:21:38.560 would have to pay Twitter a fee if he was 0:21:38.600 --> 0:21:41.600 to walk away from the deal, Bloomberg said. Ludlow says 0:21:41.600 --> 0:21:45.440 Twitter cannot solicit other offers while the transaction is pending. 0:21:45.640 --> 0:21:48.600 So where will Elon must get the cash to buy Twitter? 0:21:48.720 --> 0:21:51.440 Bloomberg's Uneda Young joins us live in New York with 0:21:51.560 --> 0:21:54.400 that good morning, Good morning, Nathan. It's the twenty one 0:21:54.480 --> 0:21:57.880