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Speaker 1: Good morning.

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Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 2: stories we're following today.

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Speaker 3: We are now just hours away from a strike that

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Speaker 3: could do serious damage to the US economy. The United

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Speaker 3: Autoworkers and Detroit's three top automakers have till midnight tonight

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Speaker 3: to agree on new labor contracts. Union president Sean Fain

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Speaker 3: says they're making progress with four General Motors and Stillantis,

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Speaker 3: but are still far apart on key issues.

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Speaker 4: From job security to ending tears, from cost to living

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Speaker 4: allowance to wage increases. We do not yet have offers

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Speaker 4: on the table that reflect a sacrifice and contributions are

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Speaker 4: members have made to these companies.

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Speaker 3: Speaking on a Facebook and YouTube live stream, the UAW,

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Speaker 3: Sean Fain says if they don't reach a deal in time,

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Speaker 3: the workers will begin to strike at targeted locations. Meanwhile,

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Speaker 3: Ford CEO Jim Farley spoke at a Mustang event at

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Speaker 3: the Detroit Auto Show, saying he still thinks a deal

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Speaker 3: can get done.

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Speaker 5: Still optimistic that we'll get a deal, but there is

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Speaker 5: a limit and because we have to protect for the

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Speaker 5: future future investments and the profitability the company funds those.

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Speaker 3: Ford CEO Jim Farley says the union hasn't made a

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Speaker 3: serious counteroffer to any of his company's proposals.

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Speaker 2: Well, Nathan, we have another event that's impacting consumers this morning.

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Speaker 6: A huge hack of casinos.

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Speaker 2: Caesar's and MGM have been hacked by the same group

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Speaker 2: within several weeks of each other. Bloomberg's Ed Baxter has

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Speaker 2: this story from San Francisco.

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Speaker 7: Caesar's Entertainment is expected to disclose details of the hack

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Speaker 7: of its system soon, but Bloomberg sources say it looks

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Speaker 7: to be tens of millions of dollars. The group behind

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Speaker 7: the attack and the one on the MGM are attributed

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Speaker 7: to a group known as Scattered Spider or UNC three

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Speaker 7: nine four four. The Caesars hack first hit an outside

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Speaker 7: vendor before gaining access to the company's network. Members of

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Speaker 7: the group are believed to be young adults, some as

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Speaker 7: young as nineteen years of age, residing in the US

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Speaker 7: and the UK. Hacking gangs typically asked to be paid

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Speaker 7: in crypto. I'm at Baxter, Bloomberg Radio.

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Speaker 3: And thanks turning the market. Shares of ARM begin trading

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Speaker 3: later this morning on the Nasdaq. The chip designer, backed

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Speaker 3: by SoftBank, price It's IPO at fifty one dollars per share,

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Speaker 3: the top end of the range. Bloomberg's Julia Fioretti says

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Speaker 3: ARM is valued head close to fifty five billion.

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Speaker 8: It's still a hugely important deal for the IPO market globally.

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Speaker 8: Almost a lot of people are looking at It is

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Speaker 8: obviously a test also of the AI boom that we've seen,

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Speaker 8: which has been powering this rally in the market. So

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Speaker 8: a lot is riding on this offering.

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Speaker 3: Bloomberg's Julia Fioretti says the IPO is the world's biggest

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Speaker 3: this year.

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Speaker 2: Well Nathan tech tycoons gathered at a closed door Senate

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Speaker 2: meeting to shape how artificial intelligence is regulated. The meeting

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Speaker 2: was organized by Senate Majority leader Chuck Schumer. It included

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Speaker 2: CEOs of Alphabet, Microsoft, Meta Platforms, and Elon Musk. The

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Speaker 2: Tesla and X CEO talked with the reporters after the meeting.

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Speaker 9: The reason that I've been so AI safety in advance

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Speaker 9: of sort of anything terrible happening is that I think

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Speaker 9: the consequences of AI going wrong are sphere, so we

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Speaker 9: have to be proactive rather than reactive.

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Speaker 3: I Meanwhile, Musk has agreed to try to settle claims

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Speaker 3: by thousands of former Twitter employees who say they were

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Speaker 3: cheated out of severance pay. That's according to a memo

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Speaker 3: from a lawyer for the workers seen by Bloomberg News.

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Speaker 3: The X, the company formerly known as Twitter, has been

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Speaker 3: accused in multiple suits of numerous labor and workplace violations,

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Speaker 3: including failing to pay severance to thousands who were fired

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Speaker 3: late last year after Musk's forty four billion dollar acquisition.

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Speaker 2: Well, Nathan, we have plenty of financial news to get

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Speaker 2: you caught up on this morning. Bloomberg News has learned

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Speaker 2: Goldman's sax As fire transaction banking executives, including the head

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Speaker 2: of the business, over compliance lapses, and.

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Speaker 3: City Group is preparing for a wave of job cuts.

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Speaker 3: The CEO, Jane Fraser's looking to restructure the Wall Street giant.

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Speaker 3: The firm will now operate five main businesses and eliminate

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Speaker 3: the three regional chiefs who oversaw operations in about one

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Speaker 3: hundred sixty countries. Jane Fraser says the shakeup will have

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Speaker 3: a big impact on the business.

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Speaker 10: The changes are the most consequential changes to how City

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Speaker 10: will be organized and run that we've made in almost

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Speaker 10: twenty years, and What this move enables me to do

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Speaker 10: is not only flatten the organization, but it also enables

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Speaker 10: me to be much more directly involved in making sure

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Speaker 10: that those businesses are performing.

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Speaker 3: City Group CEO Jane Fraser spoke at the Barclays Global

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Speaker 3: Financial Services Conference.

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Speaker 2: Well, we now take you to Europe, Nathan, where the

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Speaker 2: ECB is in focus. A central bank and it's president,

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Speaker 2: Christine Leguard make an interest rate decision this morning, and

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Speaker 2: Bloomberg's U and parties in London with a preview. Good

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Speaker 2: morning you and.

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Speaker 11: Good morning Karen, Nathan. It's a cliffhanger decision day for

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Speaker 11: the European Central Bank. Economists in Bloomberg survey are split

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Speaker 11: down the middle as to whether the twenty countries in

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Speaker 11: the euro Area will get a tenth straight rateich or

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Speaker 11: a pause. Traders are leading toward a twenty five basis

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Speaker 11: point increase. They're pricing in a roughly two in three

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Speaker 11: chance that the ECB hawks win.

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Speaker 9: The day.

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Speaker 11: Will find out how this story ends at seven to

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Speaker 11: fifteen am New York time in London. I'm you and

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Speaker 11: Potspin Beckradia you and thank you.

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Speaker 3: And as global central banks try to manage inflation, Ray

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Speaker 3: Dalyo says bonds are no longer a good long term buy.

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Speaker 3: The Bridgewater founder says he currently prefers cash.

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Speaker 12: It's not just the supply demand, isn't just the amount

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Speaker 12: of new bonds.

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Speaker 1: It's the issue of do you choose to sell the bonds.

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Speaker 13: I personally believe that the bonds longer term are not

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Speaker 13: a good investment.

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Speaker 3: Ray Dalyo spoke at the Milken Institute Asia's summit in Singapore.

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Speaker 2: All Right, Nathan, thank you, and it's time now for

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Speaker 2: a look at some of the other stories making news

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Speaker 2: around the world. For that, we're joined by Bloomberg's John Tucker. John,

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Speaker 2: Good morning, Kay.

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Speaker 14: Good morning Karen. Hurricane Lee has barreled north toward New England.

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Speaker 14: It's threatening to unleash violent storms of the region. This

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Speaker 14: comes just as communities in Massachusetts and Rhode Island, where

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Speaker 14: you're dealing with warnings and another day of heavy rain

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Speaker 14: that opened up sinkholes and brought devastating flooding to several communities.

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Speaker 14: The National Hurricane Center issued a hurricane watch for portions

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Speaker 14: of Maine. Tropical storm watch was issued for a large

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Speaker 14: area of coastal New England from parts of Rhode Island

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Speaker 14: to Stonington, Maine, including Block Island, Martha's Vineyard, and Nantucket.

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Speaker 14: The two week long nightmare for residents in southeast Pennsylvania's

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Speaker 14: come to an end after an escaped convicted murder Donald Callavacenti,

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Speaker 14: was finally apprehended yesterday. Cavalcenty tried to get away as

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Speaker 14: officers moved in, crawling at her thick underbrush with a

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Speaker 14: loaded rifle, but a Customs and Border Control team released

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Speaker 14: a canine named Yoda to capture him.

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Speaker 5: The dogs subdued him and team members from both of

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Speaker 5: those teams immediately moved in.

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Speaker 14: And that's George bivens Or the Pennsylvania State Police. For

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Speaker 14: the first time in days, Schools in businesses in the

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Speaker 14: area will reopen. Florida, Gavin around de Santa says it

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Speaker 14: was unlikely Republican front runner' Donald Trump could win the

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Speaker 14: White House if he's convicted in his criminal trials.

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Speaker 12: I think the.

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Speaker 9: Chance of getting elected president after being convicted of a

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Speaker 9: felony is as close to zero as you can get.

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Speaker 14: DeSantis was interviewed on the CBS Evening News with Nora O'Donnell.

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Speaker 14: The US and Iran are said to exchange prisoners as

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Speaker 14: early as Monday. This is an agreement that's seen as

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Speaker 14: the first step toward fresh talks to reimpose limits on

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Speaker 14: the country's nuclear program. The deal which also saw the

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Speaker 14: US allow Ran to access six billion dollars in funds

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Speaker 14: that were frozen. It's already open. President Biden up to

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Speaker 14: criticism that he's encouraging more hostage taking and shouldn't be

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Speaker 14: doing any sort of deal with the regime. Global News

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Speaker 14: twenty four hours day. We're powered by more than twenty

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Speaker 14: seven hundred journalists and analysts in more than one hundred

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Speaker 14: and twenty countries. I'm John Tecker. This is Bloomberg Karen.

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Speaker 2: All right, John, thank you. It's time now for the

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Speaker 2: Bloomberg Sports Update. And here's John Stashower, John Karen.

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Speaker 13: The first team to clincher spot in the baseball postseason,

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Speaker 13: a team that has now been there sixth straight years.

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Speaker 15: Ready with her two to two Here it comes, got

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Speaker 15: him swinging strike three and the Braves are National League's

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Speaker 15: champions for the sixth year in a row.

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Speaker 14: What an amazing era.

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Speaker 15: We're in the Midstone as it has been a six

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Speaker 15: year run of dominance in the East and the Braves

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Speaker 15: can celebrate right here in Philadelphia on the Phillies home fields.

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Speaker 13: Six eighty am. The fan had the call Braves beating

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Speaker 13: the Phillies four to one. The Braves are ninety six

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Speaker 13: and fifty and Spencer Streider is seventeen and five. He

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Speaker 13: got the win in the clinching victory. Nationals lost in

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Speaker 13: Pittsburgh seven to six. The Orioles, shut out at home

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Speaker 13: by the Cardinals, won to nothing and lost ground to

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Speaker 13: Tampa Bay, who won its game. Red Sox reigned out

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Speaker 13: with the Yankees at Fenway Park doubleheader today. Giants at

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Speaker 13: ten in in win over Cleveland six to five. They

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Speaker 13: were down five to one and the second even. They

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Speaker 13: tie the game out of JD. Davis three wing homer

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Speaker 13: the eighth Anny. The A's lost in Houston six to

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Speaker 13: two and a big win for the Texas Rangers. They

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Speaker 13: suddenly won five in a row. I'm Jordan Montgomery and

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Speaker 13: three home runs. They won ten to nothing at Toronto.

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Speaker 13: Week two in the NFL begins tonight with Minnesota at Philadelphia,

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Speaker 13: two NFC Division winners. Last year that the Vikings lost

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Speaker 13: their first playoff game, and the Eagles, of course made

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Speaker 13: it to the Super Bowl. They're without a couple of

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Speaker 13: players tonight injured can have gained well, the running back

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Speaker 13: and cornerback James Bradberry John Stash. That were Bloomberg.

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Speaker 12: Sports from coast to coast, from New York to San Francisco,

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Speaker 12: Boston to Washington, DC, nationwide on Syrias, XAM, the Bloomberg

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Speaker 12: Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 14: Good morning.

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Speaker 3: I'm Nathan Hager, and we are counting down to a

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Speaker 3: couple of key events that could have ripple effects for markets.

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Speaker 3: Midnight tonight is when an auto workers strike could begin

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Speaker 3: in Detroit, and at the opening bell this morning, British

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Speaker 3: chip designer Armhold Holdings makes its US debut on the

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Speaker 3: Nasdaq in Wall Street's biggest IPO of the year. Covering

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Speaker 3: it all for US is Bloomberg's Critty Gupta and Critties

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Speaker 3: with me now, Critty, good morning. Start with the strike deadline.

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Speaker 3: We did hear from the United Autoworkers president last night

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Speaker 3: and the CEO of Ford as well. Where do things

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Speaker 3: stand in the negotiations.

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Speaker 16: Yeah, it's looking like it's going to be kind of

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Speaker 16: that eleventh hour deadline or basically that you're going to say,

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Speaker 16: because look, we are literally counting down less than twenty

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Speaker 16: four hours before the contract that, by the way, is

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Speaker 16: a multi year contract completely expires. We're not making much progress, Nathan,

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Speaker 16: And that's really the concern for a lot of carmakers

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Speaker 16: around the world actually, and not just in the States

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Speaker 16: as well, because of course this is going to specifically

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Speaker 16: impact the auto workers that are in Detroit. The Big

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Speaker 16: three or four GM and Stalant is representing about one

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Speaker 16: hundred and fifty thousand people. But ultimately, look what it

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Speaker 16: does to the other car makers around the world. Mercedes

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Speaker 16: Benz for example, being very very vocal about this, saying, look,

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Speaker 16: this is going to have industry wide ramifications. And Nathan,

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Speaker 16: the logic here is very simple. If you don't have

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Speaker 16: these union workers, if they are striking one hundred and

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Speaker 16: fifty thousand, suddenly the price of labor for those who

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Speaker 16: are not in the union goes up significantly, not just

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Speaker 16: for the Big Three, but for all the car makers.

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Speaker 16: And that's going to ultimately feed into consumer prices. And

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Speaker 16: that's a thing at a time when a lot of

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Speaker 16: carmakers are really having a hard time selling their cars.

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Speaker 3: Now we've talked about the potential damage that this could

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Speaker 3: do to the US economy, the idea that Michigan could

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Speaker 3: even enter a recession if this strike lasts for just

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Speaker 3: a few days. Are we seeing any give from either

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Speaker 3: the union or the automakers on their offers.

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Speaker 6: We saw a little bit of give from the union.

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Speaker 16: They did lower their pay demand from about forty percent,

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Speaker 16: but it's going from about forty six percent to about

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Speaker 16: thirty six percent when you kind of compound it for

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Speaker 16: a lot of the other benefits that they have. But

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Speaker 16: keep this in mind, at the end of the day,

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Speaker 16: they are basically trying to use the same playbook that

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Speaker 16: UPS had used. The problem is this is not UPS

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Speaker 16: and Teamsters. It's a very different industry with a lot

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Speaker 16: more workers available that UPS had. The ramifications are small

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Speaker 16: or relative to UPS, but obviously still quite a big deal.

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Speaker 6: So right now it.

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Speaker 16: Looks like the union is kind of on the defensive.

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Speaker 16: You aren't seeing a ton of give from the carmakers

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Speaker 16: at the moment. For GMS, delants all united in that front.

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Speaker 16: But look, anything can happen.

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Speaker 3: Before the strike deadline. We're waiting for ARM Holding's debut

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Speaker 3: on the Nasdaq. Looks like SoftBank, the company's owner is

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Speaker 3: getting pretty much what it wanted from the IPO.

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Speaker 16: Yeah, they're about to make a pretty penny out of

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Speaker 16: this entire deal. But I got to say, we've really

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Speaker 16: got to watch the valuations here because what's significant is

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Speaker 16: that initially, when this IPO was first marketed, it was

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Speaker 16: the expectation was about sixty to seventy billion dollars is

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Speaker 16: what the IPO would be. That is coming down to

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Speaker 16: about four point eighty seven billion. We'll call it five

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Speaker 16: billion dollars to be generous here. The questioning around that valuation.

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Speaker 16: The initial thought is, well, perhaps that means that the

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Speaker 16: arm demand isn't as strong, even though now you are,

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Speaker 16: of course seeing orders about ten times subscribed. According to

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Speaker 16: Bloomberg reporting on the flip side, note that this is

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Speaker 16: kind of what happens with IPOs when you look at

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Speaker 16: the banking process here, it is very normal for bankers

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Speaker 16: to underprice the IPO so that when it actually debuts

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Speaker 16: the price skyrockets. The question is does it stay there

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Speaker 16: at the end of the day. You've seen this with

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Speaker 16: a lot of major tech IPOs Airbnb, door Dash among others,

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Speaker 16: and ultimately when and so happening is in that process

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Speaker 16: and a few months later, the stock ends up dropping

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Speaker 16: pretty significantly. A lot of folks are saying, this is

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Speaker 16: not like every other tech ipo, but there's there's the

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Speaker 16: pattern for you and Nathan.

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Speaker 3: In the time we have left, we got to talk

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Speaker 3: about this hack that affected the casino industry. More than

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Speaker 3: one company now apparently dealing with the same cyber attack

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Speaker 3: from the same group.

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Speaker 6: And a little bit of a scary one.

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Speaker 16: Nathan that the name of the group behind both attacks

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Speaker 16: is Scattered Spider, otherwise known as u NC three nine

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Speaker 16: four four. According to the people, basically, it's a group

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Speaker 16: of social engineers that are trying to gain access to

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Speaker 16: fairly large corporate networks, and to your point, very successfully.

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Speaker 16: Caesars Entertainment MGM resorts are just some to the point

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Speaker 16: that Caesars Entertainment had to pay tens of millions of

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Speaker 16: dollars to the hackers. MGN as well had to pay

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Speaker 16: a pretty significant amount. Now, of course, this is something

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Speaker 16: that we've been talking about. There have been worries about cybersecurity,

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Speaker 16: not just for the casinos.

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Speaker 6: In the States, but around the world.

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Speaker 16: Remember, a lot of these casino makers have or casino

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Speaker 16: sorry owners have massive presences in Macau among other places

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Speaker 16: as well, and cybersecurity has been something that they and

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Speaker 16: their Earnings calls have been spending a lot of money on.

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Speaker 16: What's interesting here is that usually when you look at hackings,

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Speaker 16: they're asking to be paid in cryptocurrency, specifically if it's ransom.

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Speaker 16: Sometimes they'll use things like locking up computer files, they'll

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Speaker 16: do asking for decryption keys. There's a lot of different

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Speaker 16: ways this goes. This seems to be a very specific

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Speaker 16: type of hack and of course putting a lot of

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Speaker 16: the community on edge.

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