Speaker 1: From the Bloomberg Interact, a broker's studios. This is Bloomberg
Speaker 1: Daybreak for Friday, April fourteenth. Coming up today, and arrest
Speaker 1: in the Pentagon leak raises new questions about America's secrets.
Speaker 1: President Biden wraps up his Irish tour with twenty twenty
Speaker 1: four in mind. Bank earnings begin with JP Morgan, Chase Citygroup,
Speaker 1: and Wells Fargo all reporting and retail sales camp off
Speaker 1: a busy week of economic data. Sooner he drops the
Speaker 1: sat of Donald Trump deposed in New York for nearly
Speaker 1: seven hours. I'm John Tucker. Those stories straight ahead, and
Speaker 1: I'm Dan Schwartzman. The Yankees get tramps by the Twins
Speaker 1: in the Bronx. I'll have that more coming up in sports.
Speaker 1: That's all straight ahead on Bloomberg Daybreak, The business news
Speaker 1: you need disturn your day, and just one fifteen minute
Speaker 1: podcast each pointing on Apple, Spotify, the Bloomberg Business App,
Speaker 1: and everywhere you get your podcasts. Good morning, I'm Nathan
Speaker 1: Hager and I'm Cameron Moscow. Here are the stories we're
Speaker 1: following today. We begin with major developments in the classified
Speaker 1: Pentagon Leak, a twenty one year old airman is under
Speaker 1: arrest and now the US government is in an awkward position.
Speaker 1: Bloomberg's at Baxter has the story Jack Deschara is classified
Speaker 1: as a cyber transport system journeyman. Education requirement high school degree,
Speaker 1: driver's license, up to eighteen months of on job training.
Speaker 1: How did he have access to the documents? Pentagon spokesman
Speaker 1: Brigadier General pat Ryder, this was a deliberate criminal act,
Speaker 1: violation of those guidelines. And White House spokesman when Karein
Speaker 1: Jean Pierre. The Department of Defense has said they have
Speaker 1: taken steps to further restrict access to sensitive information. It
Speaker 1: will be interesting to gauge international response in the coming days.
Speaker 1: In San Francisco, I'm at Baxter, Bloomberg day Break. All right,
Speaker 1: thanks with a document leaks overshadowed President Biden strip to Ireland.
Speaker 1: The White House says the President has been briefed on
Speaker 1: it as he stays focused on his Irish heritage. If
Speaker 1: if we gave him the poor attempt at Irish tomy
Speaker 1: shaw WAYA, I'm at home. The President addressed the Irish
Speaker 1: Parliament in Dublin yesterday, then took part in a banquet
Speaker 1: dinner with Prime Minister Leo varadker Brian said the US
Speaker 1: will work with Ireland to promote shared values, especially as
Speaker 1: we marked the twenty fifth anniversary the Good Friday Agreements
Speaker 1: this week. Above all, remember the vital and ceaseless work
Speaker 1: of strengthening democracy to deliver progress for our people everywhere.
Speaker 1: And on this final day of his visit, President Biden
Speaker 1: will speak at a cathedral and County Mayo. It's made
Speaker 1: of brick sold by a distant relative. Let's turn to
Speaker 1: the markets now, Karen. The economy and interest rates have
Speaker 1: been in focus all this week. Today we get our
Speaker 1: first snapshot at bank earning since the recent turmoil. We
Speaker 1: get more from Bloomberg Global Finance correspondent Shinali Bask. There
Speaker 1: are a lot of questions for JP Morgan City Group
Speaker 1: and Wells Fargo for how much they bought an in
Speaker 1: deposit during this big move away from the regional banks
Speaker 1: in the first quarter of this year. PNC is also
Speaker 1: reporting today, so investors will have questions on whether there's
Speaker 1: a credit crunch and whether regional banks have the propensity
Speaker 1: to lend to the economy when the economy looks like
Speaker 1: it's getting tough. We'll be watching for provisions for loan
Speaker 1: losses to see if the banks are preparing for tougher
Speaker 1: times ahead, and we'll be watching for their economic commentary
Speaker 1: as well. And Bloomberg Shinali Bassek says look for JP,
Speaker 1: Morgan and Wells Fargo earnings around seven am. Wall Street
Speaker 1: Time Citygroup reports at eight well one of the stocks
Speaker 1: hit hardest during the banking turmoil, Nathan maybe under more
Speaker 1: pressure today. A top investor has exited his entire position
Speaker 1: in Charles Schwab. The Financial Times is reporting Rajeev Jane's
Speaker 1: g a QG partner sold its entire one point four
Speaker 1: billion dollars stake during last month's turmoil, and Schwab's shares
Speaker 1: have lost nearly a third of their value since March.
Speaker 1: Well after a pair of key inflation reports this week, Karen,
Speaker 1: we wrap up the week with the March reading on
Speaker 1: retail sales. Monomists are forecasting a decline of four tenths
Speaker 1: of a percent. We get a preview from Bloomberg's Michael
Speaker 1: McKee March malaise the analysts are calling it and expected
Speaker 1: drop in retail sales last month as consumer sentiment turned
Speaker 1: sour and tax refunds fell twenty five billion dollars in
Speaker 1: March compared with the same month a year ago. Banks
Speaker 1: have reported falling credit card receipts and stores reports slower sales.
Speaker 1: Auto sales also dropped during the month. The Fed end
Speaker 1: Global Wall Street have been anxiously watching consumer spending for science.
Speaker 1: The economy is slowing down. If the sales numbers prove
Speaker 1: that out, then the question flips to how much and
Speaker 1: how fast it's slowing and whether the Fed needs to
Speaker 1: raise interest rates again. Michael McKee Bloomberg Daybreak. All right, Mike, thanks,
Speaker 1: So global stocks are heading for their highest clothes in
Speaker 1: ten weeks ahead of the retail sales report and bank earnings.
Speaker 1: But despite the recent rally, one of Wall Street's biggest
Speaker 1: bears remains bearish in the short term. Mike Wilson and
Speaker 1: Morgan Stanley says, the S and P five hundred is
Speaker 1: heading lower. We put those targets of three thirty three
Speaker 1: hundred for a trough for this cycle in May of
Speaker 1: last year. Okay, so that that has not changed. And
Speaker 1: but you know, calling the price scan the time, I mean,
Speaker 1: it's hard enough to get one right, to get both right.
Speaker 1: I think it is tricky so we've been wrong on
Speaker 1: the timing for sure, but it doesn't change our view
Speaker 1: that that low end of the range, that path two
Speaker 1: thirty nine hundred, we think still goes through kind of
Speaker 1: low three thousands ultimately, and that thirty nine hundred price
Speaker 1: target for Morgan Stanley's Mike Wilson is about six percent
Speaker 1: below yesterday's close for the S and P over learning
Speaker 1: more about a meeting in Washington this week here in
Speaker 1: between Fedchair J Powell and People's Bank of China Governor
Speaker 1: Ye Gong. Amy Morris has that from our Bloomberg ninety
Speaker 1: nine one news erm in Washington. They met on Tuesday
Speaker 1: during the World Bank and IMF Spring meetings, and while
Speaker 1: the PBOC did not provide much detail, it did say
Speaker 1: that Ye and Powell discussed the economic and financial situations
Speaker 1: in the world's two largest economies. It was their first
Speaker 1: one on one talk since twenty twenty, when Powell spoke
Speaker 1: with Ye for seventeen minutes by phone. Their last in
Speaker 1: person meeting was in twenty nineteen, on able to meet
Speaker 1: in person since then, in part because China had imposed
Speaker 1: strict border restrictions to contain the spread of COVID in Washington.
Speaker 1: I maymy more as Bloomberg Daybreak, Amy, thank you, and
Speaker 1: shares a bowing down four and a half percent in
Speaker 1: early trading. Let's find out why with Bloomberg, Steve Rappaport,
Speaker 1: Steve Karen Nathan. The aircraft maker says it's pausing deliveries
Speaker 1: of some Max Jets because of a problem involving fittings
Speaker 1: that attached the plane's vertical tale to the rear end
Speaker 1: of the fuselage. The Max Jets were grounded worldwide in
Speaker 1: twenty nineteen after a pair of deadly crashes. The company
Speaker 1: this week reported a surgeon quarterly deliveries, outpacing rival Airbus
Speaker 1: for the first time in nearly five years. Live in
Speaker 1: New York, I'm Steve Rappaport, Bloomberg Daybreak. Thanks Steve, This
Speaker 1: is Bloomberg. Seventy one degrees in New York, one more
Speaker 1: warm day before the weekend. We'll get up to the
Speaker 1: low eighties today and get down to around sixty tonight.
Speaker 1: Take a look at some of the other stories making
Speaker 1: news in New York and around the world with Bloomberg's
Speaker 1: John Tucker. Good morning, John, Yeah, Good morning to Nathan.
Speaker 1: The State University of New York dropping SAT test requirements.
Speaker 1: Let's find out more in this report with Bloomberg's Denise Pellegrini.
Speaker 1: John Sunny's board has unanimously voted to do away with
Speaker 1: the admissions requirement for the SAT and the ACT, and
Speaker 1: this goes for its dozens of campuses throughout the state.
Speaker 1: The requirement had already been temporarily suspended during the pandemic,
Speaker 1: and the National Center for Fair and Open Testing says
Speaker 1: about eighty percent of US colleges and universities were already
Speaker 1: test optional for undergrad's last fall. Sunny's enrollment has been
Speaker 1: shrinking and fewer high school students have been taking the
Speaker 1: standardized test, particularly among historically underrepresented students. John Our Bloomberg's
Speaker 1: Deunise Pellegrini. Former President Donald Trump defending his real estate
Speaker 1: business during a seven hour deposition with New York Attorney
Speaker 1: General Letitia James, he defined expectations that he would plead
Speaker 1: his Fifth Amendment right. James sued Trump, three of his kids,
Speaker 1: and his company in September for two hundred and fifty
Speaker 1: million dollars, alleging linked the inflated the value of his
Speaker 1: assets for years. New York's all reduced a budget being
Speaker 1: held up by legislative leaders wrangling with Governor Hokeel over
Speaker 1: her proposal to toughen pre trial detention policies. That story
Speaker 1: in this report from Bloomberg's Charlie Pellet. It is the
Speaker 1: second consecutive year that Hockel has slipped changes to bail
Speaker 1: policies into negotiations with fellow Democrats over the states more
Speaker 1: than two hundred and twenty billion dollar budget. The spending
Speaker 1: plan was due April first, and lawmakers have passed two
Speaker 1: extensions that will keep the government functioning through April seventeenth,
Speaker 1: but it is unclear when a deal might be reached.
Speaker 1: In New York, Charlie Pellet, Bloomberg Daybreak pro Publica reporting
Speaker 1: Supreme Court Justice Clarence Thomas and relatives sold three Georgia
Speaker 1: properties that include Thomas's boyhood home to GOP mega donner
Speaker 1: Harlan Crowe in twenty fourteen. In March, the first known
Speaker 1: instance where money flow to the High Court justice from
Speaker 1: the same Texas real estate magnate who has provided him
Speaker 1: with lavish trips around the world. The Republican dominated Florida
Speaker 1: legislature on Thursday approved a ban on abortions after six
Speaker 1: weeks of pregnancy. A Proposals signed it a law later
Speaker 1: in the day by GOP Governor Ron De Santis as
Speaker 1: he prepares for an expended presidential run. The six week
Speaker 1: band will take effect only if the state's current fifteen
Speaker 1: week ban is upheld in an ongoing legal challenge that
Speaker 1: is before the state's Supreme Court. At Meta planning to
Speaker 1: invite teenagers and young adults to join its Metaverse app
Speaker 1: in the coming months, but dozens of advocacy organizations and kids'
Speaker 1: safety experts have signed a letter as sent to Meta
Speaker 1: CEO Mark Zuckerberg asking him to terminate the plans. They
Speaker 1: argue miners will face harassment and privacy violations. Global News
Speaker 1: twenty four hours a day, powered by more than twenty
Speaker 1: seven hundred journalists and analysts and more than one hundred
Speaker 1: twenty countries. I'm John Tucker. This is Bloomberg, Nathan. Thank you, John.
Speaker 1: Time now for our Bloomberg Sports update for that bringing
Speaker 1: Dan Shortzman. Good morning, Nathan. The Yankees opening up a
Speaker 1: four game series in the Bronx versus Minnesota as the
Speaker 1: Twins dominated Hi driving kids and deep going back chucks.
Speaker 1: He's on the track, He's at that's courtesy of the
Speaker 1: S Network. Minnesota hitting four total home runs in the
Speaker 1: eleven to two win. Game two A's tonight, as it
Speaker 1: will be Nestor Cortez on the Hill from New York
Speaker 1: versus Tyler Mallley for the Twins. Matt's opened up a
Speaker 1: ten game West Coast swing at Oaklands after an off
Speaker 1: day with Kodai Sanga on the Hill versus James Kapellian.
Speaker 1: It is the Nets and Nick's getting in their playoffs
Speaker 1: un to weigh on Saturday, broken on the road at
Speaker 1: the Philadelphia seventy six Ers. Tip Off is at one pm.
Speaker 1: Knicks playing game one of their opening round of the
Speaker 1: playoffs in Cleveland versus the Cavaliers. Tip off schedule for
Speaker 1: six pm. Calves are the four seed in the East,
Speaker 1: the Knicks being the five seed. Rangers losing their regular
Speaker 1: season finale three to two at home to the Toronto
Speaker 1: Maple Leafs as Toronto scores three times in the third period. Meanwhile,
Speaker 1: the Devil's coming back from a four to two third
Speaker 1: periods to knock off the Washington Capitals in overtime five
Speaker 1: to four, Luke Hughes scoring the winner his first career
Speaker 1: NHL Goal New Jersey. Capping off their regular season with
Speaker 1: the most wins and points in franchise history. The Devil's
Speaker 1: and Rangers will be meeting in the first round of
Speaker 1: the playoffs on Dan Schwartzman Bloomberg Sports Live from coast
Speaker 1: to coast, from New York to San Francisco, Boston to Washington,
Speaker 1: d C. Nationwide on Sirius XAM, the Bloomberg Business app,
Speaker 1: and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning.
Speaker 1: I'm Nathan Hager, a twenty one year old member of
Speaker 1: the Air National Guard, is due to appear in court
Speaker 1: today to answer for one of the biggest leaks of
Speaker 1: US intelligence since Edward Snowden. The arrest of a junior
Speaker 1: level Defense Department employee in the Pentagon League is raising
Speaker 1: serious questions about the security of America's secrets and putting
Speaker 1: the US government in a very awkward position to try
Speaker 1: to answer them. For more, We're joined by Bloomberg News
Speaker 1: Executive editor for International Government, Rosalind mathieson Good morning. First off,
Speaker 1: what more do we know about this suspect Jack Tashira, Well,
Speaker 1: not a lot, as you say. He's a very he's
Speaker 1: a young man and having a fairly junior position, but however,
Speaker 1: he had access to one of the highest classifications that
Speaker 1: involved extensive vetting. He had access to very very top
Speaker 1: level information that he was seemingly sharing with his friends
Speaker 1: to try and get more friends. It doesn't appear that
Speaker 1: he was doing this out of any effort to sort
Speaker 1: of cultivate relationships with other countries or to go against
Speaker 1: the US government. It was simply because he thought it
Speaker 1: would make him look cool with his friends, and so
Speaker 1: he was sharing very very sensitive information with them on
Speaker 1: different platforms, and quite a lot of it. It seems
Speaker 1: that turns out even more of it is still coming
Speaker 1: out now, so we'll know more, of course, as time
Speaker 1: goes on. We've had a very quick arraignment. Obviously he's
Speaker 1: going to appear in court very soon and we'll find
Speaker 1: out more at that point. But it does seem that
Speaker 1: there was no great malign intent here, aside from to simply, oh,
Speaker 1: I've got access to a lot of very very interesting,
Speaker 1: high level I want to tell my friends about it. Well,
Speaker 1: that raises the obvious question of who else could have
Speaker 1: that same kind of access, and who else could have
Speaker 1: an even more malign motivation to put it out there. Well,
Speaker 1: that's right, because what we know is as of October
Speaker 1: twenty nineteen, about three million people had permission to access
Speaker 1: classified documents in the US. Of course, there were real
Speaker 1: efforts after the September eleven attacks to sort of share
Speaker 1: intelligence much more widely classified documents within the US and beyond.
Speaker 1: And again in the run up to the Russia's invasion
Speaker 1: of Ukraine, you saw widespread sharing of intelligence and classified
Speaker 1: information quite publicly to some extent, by the US and
Speaker 1: other Western allies to sort of warn Russia against invading,
Speaker 1: saying we can see what you're doing and we know
Speaker 1: what your intent is. And so it's become in a
Speaker 1: way more normalized to have some of this information floating
Speaker 1: around in the public domain. But the fact that at
Speaker 1: least three million people as of October twenty nineteen, potentially
Speaker 1: much more now since the war has been going on,
Speaker 1: have access to these documents, the question is do any
Speaker 1: of those have different kinds of intentions, perhaps to share
Speaker 1: that information with other countries, with figures and other countries,
Speaker 1: and not just with their friends. Well, even if this
Speaker 1: relative spread of access could be normalized, we have seen
Speaker 1: a pretty fierce reaction already even before the arrest, from
Speaker 1: South Korean opposition leaders as well as Ukraine, saying that
Speaker 1: Russia could be a beneficiary of some of these disclosures.
Speaker 1: What further international fallout could we see now that we
Speaker 1: do have an arrest in this case. Well, it's interesting
Speaker 1: because you do see some public airing of disquiet, but
Speaker 1: it's also a bit muted publicly that I don't really
Speaker 1: want to call out the US too heavily. The reality
Speaker 1: is that pretty much every country spies on every other country,
Speaker 1: and they spy on each other, even if they're allies.
Speaker 1: They just don't want it to become known publicly and
Speaker 1: to this extent, so they're being a little bit quiet
Speaker 1: publicly about it. But behind the scenes, from what we hear,
Speaker 1: there are lots of phone calls going on into Washington saying, hey,
Speaker 1: if we're sharing our intelligence with you bit through the
Speaker 1: Five Eyes Intelligence Network or whatever, we kind of want
Speaker 1: that information to stay safe. And it's clearly concerning that
Speaker 1: it doesn't seem to be safe if it's shared with
Speaker 1: the US, and that's kind of the concerns that are
Speaker 1: being aired, and they don't want their own dirty linen
Speaker 1: to become public. They don't want the extent of their
Speaker 1: own actions to become public, and certainly they don't want
Speaker 1: anything that might benefit Russia, as you say, and its
Speaker 1: war in Ukraine. So certainly behind the scenes, those conversations
Speaker 1: are going on and possibly sort of forcing yet another
Speaker 1: reassessment in the US of how classified information is handled.
Speaker 1: Are these conversations making for further difficulties for President Biden
Speaker 1: as he's trying to tap into his heritage and have
Speaker 1: sort of a celebratory mood as he continues to make
Speaker 1: his way through Ireland. Well, it's interesting because, of course
Speaker 1: he met with the UK Prime Minister Rishisunak, who know
Speaker 1: the UK is part of that five Eyes intelligence sharing network. Publicly,
Speaker 1: again it was all warmth and smiles and saying they
Speaker 1: didn't really discuss it that much in private either. But
Speaker 1: we do know from our own sources as we reported
Speaker 1: that there have been conversations that have gone on. But
Speaker 1: obviously for the US President, he wants this trip to
Speaker 1: go well. He wants to tout his Irish streets. He also,
Speaker 1: by the way, has some English roots also, but he
Speaker 1: wants to sort of show that kind of stoic, determined
Speaker 1: Irish heritage as he gives up for a re election
Speaker 1: bit expected for next year, and obviously to say that
Speaker 1: he's got the fight of the Irish in him, you know,
Speaker 1: given his age, give given everything else, and his sort
Speaker 1: of like tendency towards gaffs and other things, to show
Speaker 1: that he's really capable and ready to step it up
Speaker 1: for the campaign. This is Bloomberg Daybreak Today, your morning
Speaker 1: brief on the story's making news from Wall Street to
Speaker 1: Washington and beyond. Look for us on your podcast feed
Speaker 1: at six am Eastern each morning, on Apple, Spotify, and
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Speaker 1: live each morning starting at five am Wall Street time
Speaker 1: on Bloomberg eleven three zero in New York, Bloomberg ninety
Speaker 1: nine one in Washington, Bloomberg one oh six one in Boston,
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Speaker 1: I'm Nathan Hager and I'm Karen Moscow. Join us again
Speaker 1: tomorrow morning for all the news you need to start
Speaker 1: your day, right here on Bloomberg Daybreak