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Speaker 1: Life from the Bloomberg Interactive Berger Studios. This is Bloomberg

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Speaker 1: day Break for Thursday, February sixteen. Coming up today, stocks

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Speaker 1: in Europe rise as earnings from Standard Chartered and Commerce

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Speaker 1: Bank beat estimates. Cisco's upbeat forecast has shares on the rise,

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Speaker 1: a new warning on the debt ceiling, the US could

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Speaker 1: risk a false by the summer, and China hits two

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Speaker 1: US companies with sanctions. It's life in prison for the

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Speaker 1: gunman in last May's Buffalo supermarket shooting, plus a shooting

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Speaker 1: and an ol Passo mall leaves one debt. I'm Milkauel Barter.

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Speaker 1: More ahead, I'm trying stash and sports. Easy win for

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Speaker 1: the Knicks in Atlanta, the Nets beat the Heath and

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Speaker 1: the Rangers one in Vancouver. That's all straight ahead on

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Speaker 1: Bloomberg day Break, The business news you need disturn your day,

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Speaker 1: and just one fifteen minute podcast each pointing on Apple, Spotify,

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Speaker 1: the Bloomberg Business Appen everywhere you get your podcasts. Good morning,

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

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Speaker 1: stories we're following today. Well, Karen, the rise in stocks

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Speaker 1: this morning follows solid earnings. Let's begin in Europe, where

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Speaker 1: shares of Standard Chartered are up more than one percent.

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Speaker 1: The London based lender announced a billion dollar buy back

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Speaker 1: and is forecasting higher returns. We spoke with the chief

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Speaker 1: financial officer, Andy Halford. The more we can drive the

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Speaker 1: profitability of the business, the more we'll get the business

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Speaker 1: back in the fairly valued and as I said, that

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Speaker 1: is what we are completely focused upon. What is fair value?

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Speaker 1: Time will tell, but we are driving the business performance.

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Speaker 1: Standard Chartered CFO Andy Halford says the bank is optimistic

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Speaker 1: on income growth for this year thanks to rising interest

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Speaker 1: rates and a brighter economic outlook. Well, Nathan Shares a

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Speaker 1: Commerce Bank Or up almost eight percent. In Frankfurt. The

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Speaker 1: German bank says it expects profits for this year to

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Speaker 1: be even higher than in two. And here's Commerce Bank

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Speaker 1: chief financial officer Bettina or lob and twenty two was

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Speaker 1: really really a strong year. I mean the last time

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Speaker 1: that we have showed a similar net income was out

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Speaker 1: within It is because of very strong revenues, clearly also

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Speaker 1: driven by the net interested in great environment, but also

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Speaker 1: because of a very disciplined cost management. And CFO Betina

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Speaker 1: or a Lab tells us Commerce Bank is planning a

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Speaker 1: dividend for the first time in four years. Like here

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Speaker 1: in the US, care and shares of Cisco are up

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Speaker 1: more than four percent. The computer networking companies giving an

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Speaker 1: upbeat forecast. Woodgin Hoe is a senior technology analyst at

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Speaker 1: Bloomberg Intelligence. Fantastic numbers all across the board and look

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Speaker 1: ciscoes part for the course for what I've seen in

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Speaker 1: the rest of networking. We saw ast of Networks beat

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Speaker 1: and raised last last week, as well as Juniper Networks

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Speaker 1: raised three guidance because demand for networking gear has been

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Speaker 1: resilient and Cisco is proving that to be the case.

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Speaker 1: Bloomberg Intelligence senior analyst woodgin hosts Cisco's forecasting sales this

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Speaker 1: quarter will rise at least eleven percent. Well as good

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Speaker 1: as a Cisco gains are this morning, Nathan, they don't

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Speaker 1: compare to the performance of Airbnb. Yesterday, the stocks stored

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Speaker 1: more than cent after a record year in an outlook

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Speaker 1: that beat estimates. We spoke with CEO Brian Chesky. We're

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Speaker 1: seeing more recovery short term stays. We're seeing more people

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Speaker 1: go to cities, and we're seeing more people cross borders

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Speaker 1: between urban a cross border. That was around eight percent

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Speaker 1: of our ninth book before the pandemic. So it's really

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Speaker 1: more a matter of a recovery of the old ways

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Speaker 1: of traveling and a real sustainability of the new ways,

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Speaker 1: like including people staying longer and traveling more to places.

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Speaker 1: Brian Chesky says Airbnb had its highest number of active

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Speaker 1: bookers ever last quarter. Here more of our interview with

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Speaker 1: the Airbnb CEO coming up shortly on Bloomberg Daybreak. Well, Karen,

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Speaker 1: we have some headlines on US China relations this morning.

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Speaker 1: There's word Beijing is sanctioning both Lockheed Martin and a

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Speaker 1: subsidiary of raytheon technologies. China says it's over those US

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Speaker 1: companies participation in arms sales to Taiwan. The Chinese government

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Speaker 1: will band trade with Lockheed and raytheon missiles and defense. Well. Meantime,

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Speaker 1: in Washington, the fight over spending in the dead ceilings

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Speaker 1: starting to intensify. The Congressional Budget Office says the government

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Speaker 1: could default as soon as July if Congress fails to

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Speaker 1: raise the debt ceiling. Democratic Senator Ben Carden says he's

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Speaker 1: all for cutting the deficit, but not by cutting entitlements. Well,

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Speaker 1: we need to do is have an agreement between Democrats

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Speaker 1: and Republicans. What the appropriation bills are going to contain,

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Speaker 1: the capsule that spending, as to how we're going to

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Speaker 1: pay for it, Does it include so security and Medicare cuts? Now?

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Speaker 1: Maryland Senator Ben Carden spoke with Our Washington corresponded Joe

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Speaker 1: Matthew on Bloomberg Sound on Catch the show weekdays at

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Speaker 1: five pm Eastern on Bloomberg Radio or listen on demand

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Speaker 1: wherever you get your podcasts. Meantime, Karen, President Biden is

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Speaker 1: heaping praise on an unlikely figure. He's sending kind words

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Speaker 1: to Elon Musk for an offer to open open up

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Speaker 1: Tesla's supercharger network to e V rivals. Bloomberg said, Baxter

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Speaker 1: has the story. The President says it is a big deal,

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Speaker 1: Biden saying, and building the U S e V charging network,

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Speaker 1: we have to ensured that as many charges work for

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Speaker 1: as many drivers as possible. So as part of the agreement,

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Speaker 1: at least hundred of Tesla's charging stations across the US

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Speaker 1: will be available to all e V users by the

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Speaker 1: end of it will include at least thirty five hundred

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Speaker 1: of Tesla supercharger stations, which will tend to be near

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Speaker 1: highways in San Francisco. I'm at Baxter Bloomberg Daybreak. All right,

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Speaker 1: and thanks. Well, there's more news out of Tesla this morning.

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Speaker 1: We're learning the company has fired dozens of workers at

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Speaker 1: its factory in Buffalo, New York. The move comes a

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Speaker 1: day after employees there announced a union campaign, as according

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Speaker 1: to a complaint file, but the National Labor Relations Board

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Speaker 1: it accuses Tesla of retaliating for union activity. We've been

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Speaker 1: telling you about a slew of companies slashing jobs this year,

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Speaker 1: from big banks to big tech. But today it looks

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Speaker 1: like fidelities bucking the trend. It's hiring. We get the

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Speaker 1: story from Bloomberg's Doug Krisner. The asset manager is looking

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Speaker 1: to fill about four thousand new roles by mid year

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Speaker 1: as rivals reduce their ranks. The additional positions will focus

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Speaker 1: on customer service and technology. Two was a year of

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Speaker 1: record hiring for Boston based Fidelity, bringing its head count

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Speaker 1: to sixty eight thousand. Other big investment firms have been

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Speaker 1: trimming staff given economic uncertainty and softer financial markets. Last month,

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Speaker 1: Blackrock announced plans to cut five hundred jobs, or two

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Speaker 1: and a half percent of its global workforce, and earlier

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Speaker 1: this month we reported Alliance Bernstein eliminated more than a

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Speaker 1: hundred jobs in New York. I'm Doug Prisoner, Bloomberg Daybreak.

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Speaker 1: Thanks Doug. Futures are flat this morning, SMP futures are

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Speaker 1: down a point down, futures down eight, NASTAC futures down

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Speaker 1: two points. Straight ahead, your latest local headlines and a

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Speaker 1: check of sports. This is Bloomberg. It is fifty eight

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Speaker 1: degrees in New York. We're gonna have some showers this afternoon.

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Speaker 1: Another mile day on tap with highs in the low sixties.

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Speaker 1: This evening will get down to the mid fifties, but

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Speaker 1: temperatures will rise overnight. Time now to take a look

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

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Speaker 1: York and around the world with Bloomberg's Michael bar Good morning, Michael,

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Speaker 1: Good morning. Nathan, a white supremacist who killed ten black

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Speaker 1: people at a Buffalo supermarket, has been sentenced to life

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Speaker 1: in prison. Before Peyton Gender's sentencing, relatives of his victims

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Speaker 1: expressed the pain and rage over his racist attack, and

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Speaker 1: Genderan was sentenced by Judge Susan Egan there is no

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Speaker 1: place for you, or you're ignorant, hateful and evil ideologies

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Speaker 1: in a civilized society. New York Governor Kathy Hokel. Justice

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Speaker 1: has been done, and I hope that the families will

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Speaker 1: find peace and comfort in the knowledge that this person

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Speaker 1: never again walked the streets of this earth to do

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Speaker 1: harm to others as he did to their loved ones.

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Speaker 1: Yesterday's sentencing was disrupted briefly when a man in the

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Speaker 1: court rushed at general and was quickly restrained. The man

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Speaker 1: will not be charged. Meanwhile, Governor Okele suffered a set

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Speaker 1: back after the State Senate turned thumbs down on her

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Speaker 1: pick to leave the State Court of Appeals. After weeks

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Speaker 1: of intra party fighting, Senate Democrats held a floor vote

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Speaker 1: on the nomination of Judge Hector Lassalle, sal would have

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Speaker 1: been the first hispanding individual to head the top court.

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Speaker 1: A judge ordered that the sixty two year old driver

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Speaker 1: of a U haul truck that barreled through a New

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Speaker 1: York City neighborhood, killing one person and injuring eight others,

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Speaker 1: will have to undergo a psychiatric evaluation while in custody.

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Speaker 1: Wang Sore, who was charged with the murder and attempted

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Speaker 1: murder in the connection with Monday's deadly rampage. Made his

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Speaker 1: first court appearance in Brooklyn. The judge ordered him to

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Speaker 1: remain in custody without bail. El Paso, Texas police say

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Speaker 1: one person was killed and three others were wounded in

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Speaker 1: a shooting at a shopping mall. Police saying that two

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Speaker 1: suspects are in custody. El Paso Mayor Oscar Leezer says

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Speaker 1: an off duty officer was working at an establishment within

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Speaker 1: the mall. They off d the police officer there was there,

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Speaker 1: you know, did the job and the job that he's

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Speaker 1: trained to do day in and day out. It is

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Speaker 1: the same shopping complex where twenty three people were killed

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Speaker 1: in twenty nine at a walmart by a gunman. A

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Speaker 1: black Hawk helica here from the Tennessee National Guard crash

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Speaker 1: yesterday in Alabama, killing two crew members. The chopper on

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Speaker 1: a training exercise crash in the community of Harvest along

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Speaker 1: a state highway. Global News twenty four hours a day,

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Speaker 1: powered by more than twenty seven hundred journalist and analysts

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Speaker 1: in over one twenty countries. Michael Barr and this is Bloomberg, Nathan.

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Speaker 1: Thank you, Michael time for the Bloomberg Sports Update Frontier

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Speaker 1: by Tri State AUTI. Good morning John Stonshower, Good morning

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Speaker 1: Nathan and next at the All Star Break thirty three

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Speaker 1: and twenty seven and impressive seventeen and twelve on the

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Speaker 1: road in Atlanta. They won one oh one, went up

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Speaker 1: by twenty in the first quarter, never looked back. Julius

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Speaker 1: Randall now headed to Sunday's All Star Game in Utah.

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Speaker 1: He scored twenty five points. Jalen Brunson could still be

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Speaker 1: an injury replacement, should find out today. He scored twenty

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Speaker 1: four other knicks and double figures. Nixon in sixth place

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Speaker 1: in the East. They're a half game ahead of seventh

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Speaker 1: place Miami, who lost in Brooklyn and the Nets one

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Speaker 1: sixteen one o five mckel Bridges, where the Nets just

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Speaker 1: got of the have a durrant trade, obliterated his previous

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Speaker 1: career high. Had never before scored more than thirty four points.

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Speaker 1: Bridges went for forty five. He scored fifteen neck points

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Speaker 1: in a row in the fourth quarter, sixth straight wind

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Speaker 1: with the Ranger and six four at Vancouver. Para goals

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Speaker 1: were both any piner and and Meeking's advantage at the

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Speaker 1: Yankees acquired Frankie Mantas from Open last a lot, he

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Speaker 1: did not pitch well for the Yanks, and now it

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Speaker 1: appears he will not pitch at all for them. In

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Speaker 1: is Mantas the shoulders surgery. At Texas Rangers spring training,

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Speaker 1: Jacob deGrom already has an injury tightness in his left side.

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Speaker 1: Mets fan likely chuckling about that when de Gram left

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Speaker 1: the Mets, Justin Verlander joined them. This is actually my

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Speaker 1: first spring training with the brand new team since uh

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Speaker 1: two five. Um, you know, I got train to Houston

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Speaker 1: in the middle of the season, so uh, this is

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Speaker 1: like the first day of new school for me, um,

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Speaker 1: which comes with a lot of opportunity and just getting

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Speaker 1: to meet a lot of guys and them get to

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Speaker 1: know MEMI gets him Verlander a co Mets ace with

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Speaker 1: fellow veteran that Jersey John Sparsh. I want Bloomberg Sports

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Speaker 1: live from coast to coast, from New York to San Francisco,

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Speaker 1: Boston to Washington, d C. Nationwide on Sirius Examp, a

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Speaker 1: Bloomberg business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 1: Good morning. I'm Nathan Hagar as the Fed continues to

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Speaker 1: tighten and COVID stimulus withers, consumers keep spending on travel.

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Speaker 1: That's the message coming from AIRB and B, which posted

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Speaker 1: some of its best earnings ever this week. The CEO

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Speaker 1: Brian Chesky sat down with Bloomberg's Emily Chang to talk

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Speaker 1: about the growth and how Airbnb is preparing for a

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Speaker 1: possible economic downturn. Let's listen in to part of that conversation. Now,

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Speaker 1: travels robust, but let's talk about the color. Are you

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Speaker 1: seeing signs of people making trade offs? Ten days turns

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Speaker 1: into seven days, A hundred dollars a night turns into

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Speaker 1: sevent You know, it's funny, Emily. We are not seeing

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Speaker 1: um any like any like measurable slowdown. What we said

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Speaker 1: in our Q one outlook is we're expecting pretty steady growth.

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Speaker 1: Now we are expecting a little bit more accelerated growth

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Speaker 1: in short term stays, but that's that's more of a recovery.

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Speaker 1: We're seeing more recovery short term stags. We're seeing more

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Speaker 1: people go to cities, and we're seeing more people cross borders,

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Speaker 1: between urban and cross border. That was around eight percent

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Speaker 1: of our night's book before the pandemic. So it's really

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Speaker 1: more a matter of a recovery of the old ways

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Speaker 1: of traveling and a real sustainability of the new ways,

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Speaker 1: like including people staying longer and traveling to more to places.

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Speaker 1: Dave steveson your CFO said yesterday on the call, this

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Speaker 1: is growth mode now, not necessarily profit maximization mode. When

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Speaker 1: it is growth mode actually look like And there's something

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Speaker 1: kind of interesting that I've learned in Silken Valley. I

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Speaker 1: think there's this really like simple way of thinking. You're

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Speaker 1: either in growth mode or profitability mode. And what I've

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Speaker 1: learned since the pandemic is as we've gotten more profitable,

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Speaker 1: we also got more efficient. And as we've got more

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Speaker 1: EFFICI shint, we got more focused, we were able to

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Speaker 1: grow faster. So we're gonna continue to do both. But

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Speaker 1: we are focused on three priorities this year. Number one,

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Speaker 1: we want to perfect the core service, and we are

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Speaker 1: listening out all the different things that people want to

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Speaker 1: be better at BnB and we're trying to systematically fix

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Speaker 1: them one at a time. Then we need when to

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Speaker 1: make sure we have enough host If people are watching

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Speaker 1: on TV, they probably have travel their banb or know

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Speaker 1: someone who has. I want people to say the same

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Speaker 1: thing about hosting. They know somebody who is a host

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Speaker 1: because it's so mainstream and so popular. And along the way,

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Speaker 1: we're actually laying the foundation for us to extend beyond

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Speaker 1: our core business, and we're thinking about pretty expansive the

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Speaker 1: big ideas. So that's what we mean by growth mode,

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Speaker 1: that we are perfecting the core, making hosted mainstream, and

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Speaker 1: we're thinking about big ideas. But the cool thing is

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Speaker 1: that we can stay really lean, really disciplined, because I

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Speaker 1: don't think growth and profitabily have to be a major

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Speaker 1: trade off, and I hope that's what the lesson of

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Speaker 1: Airbnb is so long term stays. You mentioned grows Night's

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Speaker 1: book has that plateau. Do you think that's max at

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Speaker 1: this point, Let's think about up from a first principal standpoint,

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Speaker 1: why does that business even exist In the first place.

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Speaker 1: That business exists because there's a gap between people traveling

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Speaker 1: in a short term basis and people signing one year leases.

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Speaker 1: And that gap has increased as more people have gotten flexible.

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Speaker 1: You know, not everyone works remotely as flexible work of policies,

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Speaker 1: but a lot more people than before the pandemic. We're

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Speaker 1: seeing a lot more people want to travel for summer.

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Speaker 1: We're seeing a lot more people relocating. We're seeing a

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Speaker 1: lot more people that are kind of living different places

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Speaker 1: month to month. I think this is a very long

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Speaker 1: term trend. I think there was an initial like adoption

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Speaker 1: that was unique in its vertical nature during the pandemic.

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Speaker 1: I think it is normalizing, but over the course of

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Speaker 1: ten years, that's going to keep going up because people

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Speaker 1: are gonna continue to get more flexible. Still, you've got

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Speaker 1: inflation layoffs happening almost everywhere but Airbnb, and I wonder

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Speaker 1: if this catches up, Like, what are you worried about

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Speaker 1: when you see a tough few years ahead for the

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Speaker 1: global economy. I certainly were about, um, you know our

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Speaker 1: host I mean a lot of them live at or

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Speaker 1: below meeting income and everybody is an incredibly important way

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Speaker 1: for them to make money. And I think therapy be

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Speaker 1: can be a way for more people to become a host.

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Speaker 1: As far as our employees, though, you know, we did

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Speaker 1: make some hard choices, but here's a stat We have

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Speaker 1: five percent fewer employees than before the pandemic and we

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Speaker 1: have more revenue. So we're extremely disciplined, very focused, for

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Speaker 1: very lean and you know, we basically made a lot

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Speaker 1: of hard decisions and then we never left that discipline.

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Speaker 1: And it was partly because we didn't we knew we

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Speaker 1: were living in a time and certainty, but it's also

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Speaker 1: because we knew that as we got more disciplined in Lean,

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Speaker 1: it actually became a better experience to work here. So

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Speaker 1: I think that you know we're ready for whatever storms ahead.

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Speaker 1: Let's talk about the storm. We've got fourteen billion dollars

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Speaker 1: in cash a mass. How are you thinking about what

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Speaker 1: to do with that? Is that just a massive rainy

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Speaker 1: day recession fund. I hope it's more than that. We

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Speaker 1: are absolutely going to be looking at growth opportunities to

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Speaker 1: invest in. But one of the lessons I learned from

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Speaker 1: for the pandemic is I remember I had a teacher said, Brian,

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Speaker 1: you can do everything you want in your life, just

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Speaker 1: not at the same time. And so I want us

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Speaker 1: to be incredibly rigorous, thinking one step in front of

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Speaker 1: the other. But we are absolutely looking at expanding our market,

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Speaker 1: going to some new opportunities. But we're going to continue

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Speaker 1: to be extremely disciplined, and you know, expect us to

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Speaker 1: generate a lot more free cash flew this year as well.

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