1 00:00:02,360 --> 00:00:05,519 Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 2 00:00:05,600 --> 00:00:09,800 Speaker 1: day Break for Wednesday. A coming up this hour, shares 3 00:00:09,880 --> 00:00:13,720 Speaker 1: of Netflix plunge after its first subscriber loss in a decade. 4 00:00:13,840 --> 00:00:17,000 Speaker 1: The port city of Mariopol and Ukraine is in jeopardy. 5 00:00:17,079 --> 00:00:19,520 Speaker 1: Will have the very latest and the Justice Department and 6 00:00:19,600 --> 00:00:22,280 Speaker 1: may appeal the public Transit mass ruling if the Centers 7 00:00:22,280 --> 00:00:25,480 Speaker 1: for Disease Control says so. A Connecticut state police trooper 8 00:00:25,520 --> 00:00:28,000 Speaker 1: who fired seven gunshots into a car, killing a man 9 00:00:28,280 --> 00:00:32,080 Speaker 1: has been arrested. Plus Shanghai continues to ease COVID rules. 10 00:00:32,280 --> 00:00:35,200 Speaker 1: I'm Michael Barr. More ahead, I'm Don Stairs. Showered sports. 11 00:00:35,240 --> 00:00:37,440 Speaker 1: The Mets of the best record in baseball. They swept 12 00:00:37,440 --> 00:00:39,640 Speaker 1: the double letter from the Giants. They Yankees one of Detroit. 13 00:00:39,720 --> 00:00:44,080 Speaker 1: The Rangers shut out Whinnipeg. That's all straight ahead on 14 00:00:44,280 --> 00:00:47,159 Speaker 1: Bloomberg day Break on Bloomberg You live in three on 15 00:00:47,280 --> 00:00:51,680 Speaker 1: New York Bloomberg one, Washington, d C, Bloomberg one oh 16 00:00:51,720 --> 00:00:56,720 Speaker 1: six one in Boston, Bloomberg nine, Francisco, Syrius XM one 17 00:00:56,800 --> 00:01:00,360 Speaker 1: nineteen and around the world on Bloomberg Radio dot com 18 00:01:00,480 --> 00:01:08,720 Speaker 1: and via the Bloomberg business Side and Good morning. I'm 19 00:01:08,760 --> 00:01:11,560 Speaker 1: Karen Moscow. I'm Nathan Hager. Bloomberg day Break brought to 20 00:01:11,600 --> 00:01:14,479 Speaker 1: you by hc Wainwright. Register now for the HCW Global 21 00:01:14,520 --> 00:01:17,679 Speaker 1: Investment Conference, a hybrid event one to twenty six. Go 22 00:01:17,720 --> 00:01:20,520 Speaker 1: to h c W Events dot com. HCW reserves the 23 00:01:20,520 --> 00:01:24,200 Speaker 1: writing discretion to accept or reject registration or admission. And 24 00:01:24,360 --> 00:01:27,080 Speaker 1: US futures are lower this morning five oh one on 25 00:01:27,120 --> 00:01:29,360 Speaker 1: Wall Street, and we checked the markets every fifteen minutes 26 00:01:29,360 --> 00:01:32,319 Speaker 1: throughout the trading day. On Bloomberg SMP future is down 27 00:01:32,360 --> 00:01:36,000 Speaker 1: about eleven points down, futures down forty three, nasdack futures 28 00:01:36,040 --> 00:01:39,400 Speaker 1: down sixty ten year treasury up ten thirty seconds, The 29 00:01:39,560 --> 00:01:41,959 Speaker 1: l two point nine percent, and the yield on the 30 00:01:42,040 --> 00:01:45,320 Speaker 1: two year is at two point five six percent. Nathan, Karen, 31 00:01:45,360 --> 00:01:48,279 Speaker 1: we begin this morning with the plunge in Netflix shares. 32 00:01:48,320 --> 00:01:51,080 Speaker 1: They are down more than twenty five percent following the 33 00:01:51,120 --> 00:01:54,600 Speaker 1: company's disappointing earnings report. Let's get the latest life from 34 00:01:54,600 --> 00:01:57,600 Speaker 1: Bloomberg's Rnita Young. Good morning, Granita, Good morning Nathan. The 35 00:01:57,640 --> 00:02:01,200 Speaker 1: streaming giant unexpectedly lost the scribers for the first time 36 00:02:01,240 --> 00:02:03,800 Speaker 1: in a decade, and it sees another drop of two 37 00:02:03,880 --> 00:02:07,440 Speaker 1: million users this quarter amid heavy competition, so in an 38 00:02:07,480 --> 00:02:11,520 Speaker 1: effort to improve results, co CEO Read Hastings says Netflix 39 00:02:11,560 --> 00:02:15,240 Speaker 1: will introduce a cheaper advertising supported option for subscribers in 40 00:02:15,280 --> 00:02:17,640 Speaker 1: the next couple of years. I'm a bigger fan of 41 00:02:17,639 --> 00:02:21,520 Speaker 1: consumer choice and allowing consumers who would like to have 42 00:02:21,639 --> 00:02:25,880 Speaker 1: a lower price and are advertising tolerant um get what 43 00:02:25,919 --> 00:02:29,040 Speaker 1: they want makes a lot of sense. Netflix co CEO 44 00:02:29,160 --> 00:02:32,560 Speaker 1: Read Hastings says the company will also start to crack 45 00:02:32,639 --> 00:02:35,919 Speaker 1: down on people sharing their passwords. Live in New York, 46 00:02:35,960 --> 00:02:38,000 Speaker 1: I'm ren need a young Bloomberg day break, all right, 47 00:02:38,000 --> 00:02:40,320 Speaker 1: grined to thank you. While we are seeing the Netflix 48 00:02:40,400 --> 00:02:44,040 Speaker 1: results impact other streaming services. Shares A Disney are down 49 00:02:44,040 --> 00:02:46,960 Speaker 1: more than four percent, while Roku is off by six percent, 50 00:02:47,400 --> 00:02:49,520 Speaker 1: and one of their stock of note moving this morning 51 00:02:49,600 --> 00:02:51,960 Speaker 1: is IBM. Shares her up one and a half percent 52 00:02:52,000 --> 00:02:55,360 Speaker 1: after the company's sales topped analysts estimates and the earnings 53 00:02:55,360 --> 00:02:58,120 Speaker 1: continue to roll in Karen. With sixteen companies in the 54 00:02:58,200 --> 00:03:02,000 Speaker 1: SMP five reporting today, they include Tesla. We get a 55 00:03:02,000 --> 00:03:05,079 Speaker 1: preview from Bloomberg's Tom busby one big focus for first 56 00:03:05,120 --> 00:03:08,040 Speaker 1: quarter earnings at the world's biggest electric auto maker how 57 00:03:08,120 --> 00:03:12,000 Speaker 1: much the COVID nineteen shutdown to the company's Shanghai plant 58 00:03:12,120 --> 00:03:15,280 Speaker 1: have impacted production. There also of concerned the impact of 59 00:03:15,360 --> 00:03:18,520 Speaker 1: the global computer chip shortage and the ongoing supply chain 60 00:03:18,600 --> 00:03:22,560 Speaker 1: issues that have affected all automakers. But Bloomberg and Census 61 00:03:22,639 --> 00:03:25,400 Speaker 1: calls for adjusted earnings of two dollars twenty seven cents 62 00:03:25,400 --> 00:03:29,760 Speaker 1: of share and revenues of seventeen point nine two billion dollars. 63 00:03:29,880 --> 00:03:33,240 Speaker 1: Tom Busby, Bloomberg Daybreak, All right, Tom, thank you. Atturning 64 00:03:33,280 --> 00:03:36,600 Speaker 1: to the economy, US tenure yields are really yields briefly 65 00:03:36,640 --> 00:03:40,480 Speaker 1: turned positive this morning for the first time since March. Meanwhile, 66 00:03:40,560 --> 00:03:43,880 Speaker 1: Chicago FED President Charles Evans says interest rates will probably 67 00:03:44,080 --> 00:03:47,280 Speaker 1: rise above the neutral level, but how much higher will 68 00:03:47,320 --> 00:03:50,920 Speaker 1: hange on whether inflation cools has expected. Probably we are 69 00:03:51,000 --> 00:03:53,880 Speaker 1: going beyond neutral. I mean that's my expectation. When I 70 00:03:54,040 --> 00:03:57,160 Speaker 1: see that, taking out special factors, I'm still left with 71 00:03:57,200 --> 00:03:59,600 Speaker 1: three to three and a half percent inflation. That's not 72 00:04:00,120 --> 00:04:03,080 Speaker 1: we want. And Chicago Fed President Charles Evans made the 73 00:04:03,080 --> 00:04:05,680 Speaker 1: comments yesterday at the Economic Club of New York. We 74 00:04:05,920 --> 00:04:08,200 Speaker 1: may get a clear picture behind the Fed's thinking, Karen, 75 00:04:08,200 --> 00:04:11,200 Speaker 1: when it's regional economic survey, known as the Beige Book, 76 00:04:11,280 --> 00:04:14,640 Speaker 1: comes out this afternoon. Bloomberg's Michael McKee has a preview. 77 00:04:14,760 --> 00:04:17,880 Speaker 1: Americans say they are discouraged by inflation, but are they 78 00:04:17,880 --> 00:04:20,640 Speaker 1: pulling back on spending an investment. The Beige Book will 79 00:04:20,680 --> 00:04:23,800 Speaker 1: offer FED officials anecdotal evidence on the impact of rising 80 00:04:23,839 --> 00:04:27,039 Speaker 1: prices and the outlook for the next few months. Activity 81 00:04:27,080 --> 00:04:30,080 Speaker 1: has been mixed, showing some cooling and goods demand that 82 00:04:30,160 --> 00:04:33,599 Speaker 1: could ease price pressures, although there's been a greater appetite 83 00:04:33,640 --> 00:04:36,719 Speaker 1: for services recently. First quarter growth is forecast to slow 84 00:04:36,760 --> 00:04:39,600 Speaker 1: considerably from the fourth quarters sizzling six point nine per 85 00:04:39,600 --> 00:04:42,479 Speaker 1: cent annual rate. It's not definitive by any means, but 86 00:04:42,520 --> 00:04:44,680 Speaker 1: the Baige Book will offer some color and whether that's 87 00:04:44,640 --> 00:04:47,719 Speaker 1: slow down is going to be temporary or longer lasting. 88 00:04:47,960 --> 00:04:50,920 Speaker 1: Michael McKee, Bloomberg Daybreak. All right, Michael, thank you, and 89 00:04:51,040 --> 00:04:53,240 Speaker 1: we now want to update you on the latest developments 90 00:04:53,240 --> 00:04:55,560 Speaker 1: in the war. The poor city of Mario pol in 91 00:04:55,680 --> 00:04:59,320 Speaker 1: Ukraine is on the brink. Ukrainian defenders say they are 92 00:04:59,440 --> 00:05:02,320 Speaker 1: surround it and they are appealing to world leaders for help. 93 00:05:02,320 --> 00:05:07,159 Speaker 1: Bloomberg's Amy Morris reports Ukrainian President Voladimir's Alinsky posted a 94 00:05:07,279 --> 00:05:13,360 Speaker 1: video to social media saying that the Russian Army is 95 00:05:13,440 --> 00:05:16,279 Speaker 1: righting itself into world history as the most barbaric and 96 00:05:16,360 --> 00:05:19,200 Speaker 1: in humane army in the world, in part because they're 97 00:05:19,240 --> 00:05:23,599 Speaker 1: blocking efforts to create humanitarian corridors, especially in Mariopol, where 98 00:05:23,600 --> 00:05:26,440 Speaker 1: the commander of one Ukrainian brigade is pleading for help 99 00:05:26,480 --> 00:05:30,000 Speaker 1: from other countries to evacuate civilians from the ports city. 100 00:05:30,400 --> 00:05:33,440 Speaker 1: Russia has given the fighters until two pm in Moscow, 101 00:05:33,520 --> 00:05:37,000 Speaker 1: that's seven am Eastern, to lay down their arms and surrender. 102 00:05:37,400 --> 00:05:40,960 Speaker 1: In Washington, I'm any Morris Bloomberg Daybreak, Alright, Amy, Thanks. 103 00:05:40,960 --> 00:05:43,479 Speaker 1: Turning to the pandemic, the Department of Justice says it 104 00:05:43,560 --> 00:05:47,600 Speaker 1: is prepared to appeal the mask mandate ruling if necessary. 105 00:05:47,760 --> 00:05:50,680 Speaker 1: Bloomberg said, Baxter has that story. The d o J 106 00:05:50,880 --> 00:05:53,560 Speaker 1: says it will appeal if the CDC decides that the 107 00:05:53,560 --> 00:05:56,359 Speaker 1: mandate should remain in place after May three, when the 108 00:05:56,400 --> 00:06:01,440 Speaker 1: current one expires. Currently, the recommendations remain place but not mandated. 109 00:06:01,600 --> 00:06:04,839 Speaker 1: Under the ruling. The White House is keeping its mandate 110 00:06:04,839 --> 00:06:08,440 Speaker 1: in forest and spokeswoman Jen Psaki says the administration says 111 00:06:08,480 --> 00:06:10,560 Speaker 1: it is a smart thing to do. We're continuing to 112 00:06:10,600 --> 00:06:13,840 Speaker 1: encourage people to wear masks in public transit. They'll make 113 00:06:13,880 --> 00:06:16,960 Speaker 1: that decision because it's obviously not being implemented at this 114 00:06:17,040 --> 00:06:19,719 Speaker 1: moment time, but will continue to abide by CDC guidance 115 00:06:19,880 --> 00:06:23,120 Speaker 1: for now. It is a personal decision. In San Francisco, 116 00:06:23,160 --> 00:06:25,839 Speaker 1: I'm at Baxter Bloomberg daybreak, all right, and thank you 117 00:06:25,880 --> 00:06:27,919 Speaker 1: well on Wall Street to days of free lunch at 118 00:06:27,920 --> 00:06:31,040 Speaker 1: Goldman sacks are over marking the end of a pandemic 119 00:06:31,160 --> 00:06:34,080 Speaker 1: office perk, and we get a story from Bloomberg's Charlie Pellett. 120 00:06:34,720 --> 00:06:38,640 Speaker 1: The investment bank says it will transition back to paid 121 00:06:38,680 --> 00:06:42,400 Speaker 1: for meal service for breakfast and lunch on April twenty five. 122 00:06:42,839 --> 00:06:45,960 Speaker 1: Goldman also says it will boost the stipend for meals 123 00:06:45,960 --> 00:06:49,239 Speaker 1: out of hours to thirty dollars from twenty five dollars. 124 00:06:49,600 --> 00:06:52,520 Speaker 1: Wall Street firms have been using free food as part 125 00:06:52,560 --> 00:06:55,039 Speaker 1: of the push to bring employees back to their desks 126 00:06:55,400 --> 00:06:58,520 Speaker 1: during a pandemic that has fueled the rise of hybrid 127 00:06:58,600 --> 00:07:02,039 Speaker 1: schedules and remote work. Goldman has been one of the 128 00:07:02,080 --> 00:07:06,040 Speaker 1: most aggressive financial firms in pushing for a return to 129 00:07:06,160 --> 00:07:09,560 Speaker 1: the office. In New York, Charlie Pellette Bloomberg Day Break. 130 00:07:09,640 --> 00:07:11,840 Speaker 1: Thanks Charlie joined us later today. We'll speak live with 131 00:07:11,880 --> 00:07:15,320 Speaker 1: Bank of America CEO Brian moynihan at noon Wall Street 132 00:07:15,360 --> 00:07:18,880 Speaker 1: Time on both Bloomberg Radio and Bloomberg Television. This is 133 00:07:18,920 --> 00:07:25,120 Speaker 1: Bloomberg South five oh seven on Wall Street where forty 134 00:07:25,120 --> 00:07:27,520 Speaker 1: two degrees in Central Parker dealing with an accident on 135 00:07:27,560 --> 00:07:30,680 Speaker 1: the Van Wick northbound past College Point Boulevard. Details coming 136 00:07:30,760 --> 00:07:33,120 Speaker 1: up in traffic. First Michael Barr with what else is 137 00:07:33,160 --> 00:07:35,559 Speaker 1: going on in New York and around the world. Good morning, Michael, 138 00:07:35,640 --> 00:07:39,040 Speaker 1: Good morning Nathan. The New Jersey Catholic Diocese of Camden 139 00:07:39,400 --> 00:07:42,640 Speaker 1: has agreed to pay eighties seven point five million dollars 140 00:07:42,640 --> 00:07:45,840 Speaker 1: to subtle claims involving clergy sex abuse, with about three 141 00:07:45,920 --> 00:07:49,560 Speaker 1: hundred alleged victims. It's one of the largest cash settlements 142 00:07:49,600 --> 00:07:53,080 Speaker 1: involving the Catholic Church in the US. Mark Crawford is 143 00:07:53,160 --> 00:07:56,080 Speaker 1: with the State Chapter of the Survivors Network of Those 144 00:07:56,120 --> 00:08:00,120 Speaker 1: Abused by priests. I'm glad it's come to fruition. Um. 145 00:08:00,160 --> 00:08:03,560 Speaker 1: I hope and believe that it will lead to some 146 00:08:03,640 --> 00:08:08,920 Speaker 1: small level of closure and hopefully some validation for the 147 00:08:09,000 --> 00:08:13,960 Speaker 1: victims of qudge abuse within the Diocese of Camden, New Jersey. 148 00:08:14,160 --> 00:08:17,600 Speaker 1: Mark Crawford with the Survivors Network says the subtlement carries 149 00:08:17,640 --> 00:08:21,880 Speaker 1: a unique agreement, including turning over documents. Connecticut State Police 150 00:08:21,880 --> 00:08:24,920 Speaker 1: say a trooper who fired seven gunshots into a car 151 00:08:25,200 --> 00:08:27,600 Speaker 1: and killed a man in twenty twenty after a high 152 00:08:27,640 --> 00:08:30,880 Speaker 1: speed chase has been arrested in connection with the shooting. 153 00:08:31,200 --> 00:08:35,160 Speaker 1: Authorities say trooper Brian North turned himself into the State 154 00:08:35,240 --> 00:08:39,640 Speaker 1: Inspector General last evening. North fatally shot Mubarick Solomine in 155 00:08:39,720 --> 00:08:43,800 Speaker 1: January of as Solomine sat in the driver's seat of 156 00:08:43,840 --> 00:08:46,680 Speaker 1: a car in West Haven where the chase ended and 157 00:08:46,760 --> 00:08:50,160 Speaker 1: police boxed in the car. The State Police union says 158 00:08:50,200 --> 00:08:54,040 Speaker 1: North risked his life and is defending his actions. It 159 00:08:54,120 --> 00:08:57,320 Speaker 1: looks like New York City doorman won't go on strike 160 00:08:57,400 --> 00:09:00,439 Speaker 1: after all. Yesterday, at tentative deal was reached to a 161 00:09:00,559 --> 00:09:03,719 Speaker 1: vert of potential walkout one day ahead of the deadline. 162 00:09:04,040 --> 00:09:08,160 Speaker 1: The agreement reached the union and the Realty Advisory Board. 163 00:09:08,640 --> 00:09:11,360 Speaker 1: It averts what would have been the first strike of 164 00:09:11,640 --> 00:09:15,480 Speaker 1: the residential building service workers in New York in thirty 165 00:09:15,480 --> 00:09:18,840 Speaker 1: one years. New Jersey's governor has some thoughts as the 166 00:09:18,840 --> 00:09:23,000 Speaker 1: state prepares to legalize recreational pot sales. Governor Phil Murphy 167 00:09:23,120 --> 00:09:26,600 Speaker 1: won't be partaking in pot, but he does have a preference. 168 00:09:26,960 --> 00:09:29,160 Speaker 1: It's never been an animating thing for me. If we 169 00:09:29,160 --> 00:09:31,920 Speaker 1: were legalizing Scotch, I would show up with a shopping cart. 170 00:09:32,080 --> 00:09:36,040 Speaker 1: Governor Murphy says. Recreational pots sales begin tomorrow. A Chinese 171 00:09:36,040 --> 00:09:38,920 Speaker 1: health official says four million more people in Shanghai have 172 00:09:38,960 --> 00:09:43,120 Speaker 1: been allowed to leave their homes as coronavirus quarantine rules ease. 173 00:09:43,400 --> 00:09:45,920 Speaker 1: That brings to a total of almost twelve million people 174 00:09:46,000 --> 00:09:48,800 Speaker 1: who have been allowed to leave their homes as China's 175 00:09:48,880 --> 00:09:51,960 Speaker 1: largest city tries to contain the virus outbreaks. Global News 176 00:09:52,000 --> 00:09:54,640 Speaker 1: twenty four hours a day on air and on Bloomberg 177 00:09:54,720 --> 00:09:57,880 Speaker 1: Quicktake Power by more than twenty seven hundred journalists and 178 00:09:57,880 --> 00:10:00,520 Speaker 1: analysts more than a hundred twenty countries. U. Michael barn 179 00:10:00,600 --> 00:10:08,000 Speaker 1: This is Bloomberg. Okay, Michael, thank you. Almost five ten 180 00:10:08,000 --> 00:10:10,320 Speaker 1: on Wall Street. Time for the Bloomberg Sports Update. Good morning, 181 00:10:10,360 --> 00:10:13,280 Speaker 1: John Stanhower, Good morning, Nathan Shure. It's early, but don't 182 00:10:13,280 --> 00:10:15,560 Speaker 1: look now. The Mets at night and three of the 183 00:10:15,559 --> 00:10:18,000 Speaker 1: best record the Major leagues. Doubleheader sway for the Giants 184 00:10:18,040 --> 00:10:20,120 Speaker 1: at City Field. If began with a big comeback Mets 185 00:10:20,120 --> 00:10:22,280 Speaker 1: trailed four to one, tie the game, and then won 186 00:10:22,360 --> 00:10:26,440 Speaker 1: it in the tenth inning. On the door, Garcia's pitch 187 00:10:27,160 --> 00:10:29,920 Speaker 1: swing a lock rot toarts center field. That's gonna get 188 00:10:29,920 --> 00:10:32,719 Speaker 1: down that they sent it rolls toward the wall and 189 00:10:32,880 --> 00:10:38,680 Speaker 1: right center stores that Francisco Indoor comes through, Mets winning 190 00:10:38,800 --> 00:10:43,160 Speaker 1: ten five for the final CBS to call Francisco into 191 00:10:43,160 --> 00:10:45,199 Speaker 1: a rough first season in New York, but off to 192 00:10:45,280 --> 00:10:47,160 Speaker 1: a hot start this year. He had two more hits 193 00:10:47,160 --> 00:10:49,240 Speaker 1: of the nightcap won by the Mets three to one 194 00:10:49,320 --> 00:10:52,680 Speaker 1: thanks to Max scherz Or his first met home starting 195 00:10:52,720 --> 00:10:54,679 Speaker 1: serves Are flirted with a no hit or lost it 196 00:10:54,720 --> 00:10:57,040 Speaker 1: in the sixth inning, but gave up just the one 197 00:10:57,120 --> 00:10:59,480 Speaker 1: hit struck at ten and seven in inh sers are 198 00:10:59,520 --> 00:11:03,079 Speaker 1: already three and oh in Detroit. That Garrett cole struggles 199 00:11:03,080 --> 00:11:06,320 Speaker 1: continue this supposed Yankee Ace had to be taken out 200 00:11:06,360 --> 00:11:09,000 Speaker 1: in the second inning, got only five outs. He issued 201 00:11:09,040 --> 00:11:12,400 Speaker 1: five walks, but Clark Schmidt followed Cole with three. The 202 00:11:12,440 --> 00:11:15,280 Speaker 1: third scoreless relief six strikeouts and the Yankees beat the 203 00:11:15,320 --> 00:11:18,120 Speaker 1: Tigers four to two, fifty win for the Rangers. Three 204 00:11:18,200 --> 00:11:20,960 Speaker 1: nothing over Winnipeg at the Garden. Ryan Strom sport twice 205 00:11:21,000 --> 00:11:24,120 Speaker 1: and Igor says Sirkin with thirty one saves. The Rangers 206 00:11:24,120 --> 00:11:26,920 Speaker 1: have won their last three games by a combined eleven 207 00:11:27,000 --> 00:11:29,400 Speaker 1: and nothing. First time the Rangers have had three straight 208 00:11:29,480 --> 00:11:33,760 Speaker 1: shutouts since the Eddie Jackoman days inten seventy three NBA 209 00:11:33,840 --> 00:11:37,120 Speaker 1: Playoff wins from Miami, Memphis and New Orleans Nets and 210 00:11:37,120 --> 00:11:40,720 Speaker 1: Celtics Tonight Game two in Boston, Kyrie Irvine find fifty 211 00:11:40,760 --> 00:11:44,600 Speaker 1: thousand dollars for his middle finger salutes to the Celtic fans. 212 00:11:44,600 --> 00:11:48,240 Speaker 1: On Sunday, John Stashward, Bloomberg Sports, Nathan all Right, John, 213 00:11:48,240 --> 00:11:51,320 Speaker 1: thanks SMP futures down ten point, Staff futures down thirty eight, 214 00:11:51,400 --> 00:11:54,920 Speaker 1: NASTAC futures down sixty one points. Shares of Netflix down 215 00:11:54,960 --> 00:11:58,800 Speaker 1: twenty six percent points to lose forty billion dollars in 216 00:11:58,880 --> 00:12:01,760 Speaker 1: value after the subscribe promiss We'll talk about it next 217 00:12:01,800 --> 00:12:08,280 Speaker 1: with Alex Webb of Bloomberg Quicktake. This is Bloomberg, Bloomberg 218 00:12:08,280 --> 00:12:11,640 Speaker 1: eleven three oh weather. Sunshine today hides in the upper fifties, 219 00:12:11,720 --> 00:12:14,080 Speaker 1: more clouds than sun. Tomorrow with the high near sixty 220 00:12:14,240 --> 00:12:17,400 Speaker 1: will be near seventy partly Sunday by Friday. Right now 221 00:12:17,440 --> 00:12:23,440 Speaker 1: clouds forty two degrees in Central Park markets, headlines and 222 00:12:23,600 --> 00:12:26,840 Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com, 223 00:12:26,960 --> 00:12:30,040 Speaker 1: the Bloomberg Business out and at Bloomberg Quick Take, This 224 00:12:30,440 --> 00:12:39,800 Speaker 1: is a Bloomberg Business Flash and I'm kared. Moscow US 225 00:12:39,880 --> 00:12:43,040 Speaker 1: Dock Index futures are lower as investors way the impact 226 00:12:43,040 --> 00:12:46,240 Speaker 1: of rising real yields on the appeal of riskier assets, 227 00:12:46,240 --> 00:12:48,800 Speaker 1: and Netflix puts a damper on the earning season outlook. 228 00:12:48,880 --> 00:12:51,480 Speaker 1: We checked the markets every fifteen minutes throughout the trading day. 229 00:12:51,800 --> 00:12:54,400 Speaker 1: On Bloomberg s and p Future is down twelve points 230 00:12:54,400 --> 00:12:57,200 Speaker 1: this morning. At down Future is down forty seven nasdag 231 00:12:57,240 --> 00:13:00,720 Speaker 1: Future is down sixty five and the in Your Treasuries 232 00:13:00,800 --> 00:13:03,559 Speaker 1: up eight thirty seconds. The l two point nine zero 233 00:13:03,720 --> 00:13:06,440 Speaker 1: percent yield on the two year two point five six 234 00:13:06,480 --> 00:13:09,280 Speaker 1: percent nine Max Screwed oils at one point one percent 235 00:13:09,360 --> 00:13:11,400 Speaker 1: of a dollar ten and a hundred three dollars sixty 236 00:13:11,440 --> 00:13:14,120 Speaker 1: six cents of Barrel Comic schooled down half percent or 237 00:13:14,120 --> 00:13:17,880 Speaker 1: ten dollars thirty cents at nine seventy announced. The euro 238 00:13:18,000 --> 00:13:20,400 Speaker 1: one point o three three against the dollar. British found 239 00:13:20,440 --> 00:13:22,439 Speaker 1: one point three zero to six, the n at one 240 00:13:22,800 --> 00:13:26,240 Speaker 1: eight point three too, and Bitcoin this morning is up 241 00:13:26,320 --> 00:13:29,839 Speaker 1: half percent at forty one tho five hundred dollars. Today 242 00:13:29,840 --> 00:13:32,319 Speaker 1: we're watching for report on existing home sales at a 243 00:13:32,360 --> 00:13:34,360 Speaker 1: ten o'clock Wall Street time than at to the Federal 244 00:13:34,400 --> 00:13:37,000 Speaker 1: Reserve at least at its fige book and Tesla's among 245 00:13:37,040 --> 00:13:40,840 Speaker 1: companies scheduled to report earnings today. That's a Bloomberg business flash. 246 00:13:40,840 --> 00:13:43,040 Speaker 1: Now here's Muchael Barrow with more on what's going on 247 00:13:43,120 --> 00:13:46,040 Speaker 1: around the world. Muchael, Good morning, Good morning, Karen. Russia 248 00:13:46,200 --> 00:13:50,040 Speaker 1: is pouring more troops into Ukrainian cities and towns. The 249 00:13:50,120 --> 00:13:53,640 Speaker 1: fighting in the East seeks slides the country in two 250 00:13:54,080 --> 00:13:57,880 Speaker 1: in a potentially pivotal battle for control of Ukraine's industrial 251 00:13:57,960 --> 00:14:01,679 Speaker 1: heartland of coal mines and actories. Winds kicked up a 252 00:14:01,720 --> 00:14:05,800 Speaker 1: towering wall of flames in rural northern Arizona, tearing through 253 00:14:05,840 --> 00:14:08,920 Speaker 1: two dozen structures and forcing the evacuation of more than 254 00:14:08,960 --> 00:14:12,400 Speaker 1: seven hundred homes. In MLB, the Yankees one the Mets. 255 00:14:12,520 --> 00:14:16,160 Speaker 1: Mets swept a doubleheader against the Giants. The Nationals swept 256 00:14:16,160 --> 00:14:19,320 Speaker 1: a doubleheader against the Diamondbacks. The Red Sox won the 257 00:14:19,360 --> 00:14:22,240 Speaker 1: A's beat the Orioles to one. The game was played 258 00:14:22,560 --> 00:14:26,080 Speaker 1: before the smallest Oakland crowd in forty two years, almost 259 00:14:26,080 --> 00:14:30,160 Speaker 1: thirty seven hundred fifty fans at the Colosseum. In the NHL, 260 00:14:30,360 --> 00:14:32,960 Speaker 1: the Rangers and Bruins one. The Islanders lost in O 261 00:14:33,040 --> 00:14:36,280 Speaker 1: G to the Panthers three too. Yeah. Yeah. It's global 262 00:14:36,280 --> 00:14:38,640 Speaker 1: news twenty four hours a day on air and on 263 00:14:38,680 --> 00:14:42,920 Speaker 1: Bloomberg Quicktake, powered by more than twenty journalists antalyists more 264 00:14:42,920 --> 00:14:44,800 Speaker 1: than a hundred twenty countries. On Michael bar This is 265 00:14:44,800 --> 00:14:47,880 Speaker 1: Bloomberg Nathan by Michael Thanks five nineteen. On Wall Street 266 00:14:47,880 --> 00:14:51,080 Speaker 1: Life from the Bloomberg Interactive Brooker Studios, This is Bloomberg Daybreak. 267 00:14:51,080 --> 00:14:54,640 Speaker 1: And speaking of losing fans, how about Netflix? The shares 268 00:14:54,680 --> 00:14:57,720 Speaker 1: are getting pummeled once again in the pre market after 269 00:14:57,760 --> 00:15:01,080 Speaker 1: the streaming giant reported its first s describer loss in 270 00:15:01,120 --> 00:15:04,560 Speaker 1: more than a decade. Alex Webb follows this company very closely, 271 00:15:04,680 --> 00:15:07,320 Speaker 1: and Alex is with Us now anchor on Bloomberg Quick 272 00:15:07,360 --> 00:15:13,240 Speaker 1: Take and tech columnist for Bloomberg Opinion. Alex, what happened? Well? 273 00:15:13,360 --> 00:15:17,520 Speaker 1: Lockdowns basically lockdowns ended, and Netflix said a Lockflix And 274 00:15:17,600 --> 00:15:21,520 Speaker 1: of course inflation, so Netflix had enjoyed massive growth during 275 00:15:21,520 --> 00:15:25,320 Speaker 1: the lockdowns, and perhaps optimistically, there had been expectation that 276 00:15:25,320 --> 00:15:27,720 Speaker 1: at least some of that growth would continue. It didn't, 277 00:15:27,800 --> 00:15:31,160 Speaker 1: and they lost two undred subscribers. At the same time, 278 00:15:31,160 --> 00:15:35,320 Speaker 1: people's household bills are getting, you know, expanding because of Netflix, 279 00:15:35,320 --> 00:15:39,200 Speaker 1: and ultimately, streaming video is discretionary spending. So when people 280 00:15:39,200 --> 00:15:41,160 Speaker 1: are looking at their bills and they say, well, you know, 281 00:15:41,160 --> 00:15:43,160 Speaker 1: what can I fall to cut that twelve bucks a 282 00:15:43,160 --> 00:15:46,800 Speaker 1: month for Netflix is something that people are getting rid of. 283 00:15:46,960 --> 00:15:48,440 Speaker 1: So is that part of the reason. Do you think 284 00:15:48,440 --> 00:15:51,920 Speaker 1: why we're seeing declines across the board for a lot 285 00:15:51,920 --> 00:15:57,320 Speaker 1: of these companies with streaming exposure, This idea that people 286 00:15:57,440 --> 00:16:00,400 Speaker 1: might be cutting back because of inflation, Shin is that 287 00:16:00,520 --> 00:16:03,280 Speaker 1: is that part of the story? Absolutely, And of course 288 00:16:03,360 --> 00:16:06,960 Speaker 1: people are realizing that it may not necessarily be more 289 00:16:07,000 --> 00:16:10,400 Speaker 1: economical than the cable they might have had previously. That 290 00:16:11,000 --> 00:16:13,760 Speaker 1: you know, in our household, we have an embarrassing number 291 00:16:13,800 --> 00:16:16,560 Speaker 1: of streaming services. I think by the time you take 292 00:16:16,600 --> 00:16:20,040 Speaker 1: it acout, Netflix plus, Discovery, Discovery Plus plus, Amazon Prime plus, 293 00:16:20,360 --> 00:16:22,800 Speaker 1: Apple TV Plus and all these other things, HBO Max, 294 00:16:23,120 --> 00:16:26,120 Speaker 1: you're getting close to that six dollars a month, depending 295 00:16:26,120 --> 00:16:29,720 Speaker 1: what your cable contract looks like quite quickly. And it 296 00:16:29,880 --> 00:16:32,240 Speaker 1: is of course not a space that everybody can win. 297 00:16:32,680 --> 00:16:36,840 Speaker 1: So what does this mean for the streaming business going forward? Here? 298 00:16:36,880 --> 00:16:41,040 Speaker 1: What does it have to do to a keep subscribers 299 00:16:41,080 --> 00:16:44,480 Speaker 1: and be just turn things around entirely. Well, one of 300 00:16:44,480 --> 00:16:47,840 Speaker 1: the big problems is that the differences between streaming video 301 00:16:48,120 --> 00:16:51,800 Speaker 1: and the classic cable contract was is churn i e. 302 00:16:52,000 --> 00:16:54,280 Speaker 1: The number of subscribers you lose in any given month. 303 00:16:54,360 --> 00:16:56,240 Speaker 1: And when you had a cable contract, or you have 304 00:16:56,280 --> 00:16:58,920 Speaker 1: a cable contract, it might be an eighteen month, two 305 00:16:58,960 --> 00:17:01,880 Speaker 1: year contract, so you spend that money on customer acquisition 306 00:17:01,960 --> 00:17:04,760 Speaker 1: upfront and then you're guarantee you know, perhaps a thousand 307 00:17:04,840 --> 00:17:07,480 Speaker 1: dollars worth of revenue over the subsequent two years for 308 00:17:07,520 --> 00:17:09,600 Speaker 1: the duration of the contract. Now that is not the 309 00:17:09,600 --> 00:17:12,320 Speaker 1: case with streaming video, and they're all fighting month in, 310 00:17:12,560 --> 00:17:17,000 Speaker 1: month out for those subscribers. That is a high marketing cost. 311 00:17:18,119 --> 00:17:20,520 Speaker 1: They have been valued as growth stocks because they are 312 00:17:20,560 --> 00:17:24,600 Speaker 1: adding subscribers, and Disney pivoted really from being a value 313 00:17:24,640 --> 00:17:27,440 Speaker 1: to a growth stock because of Disney Plus. But when 314 00:17:27,440 --> 00:17:29,240 Speaker 1: that growth starts to slow down, you have to wonder 315 00:17:29,240 --> 00:17:31,640 Speaker 1: where you can find the value. Are they as valuable 316 00:17:31,720 --> 00:17:35,040 Speaker 1: as an A T and T for instance, when you 317 00:17:35,080 --> 00:17:38,840 Speaker 1: look at the long duration when of their earnings profile. 318 00:17:39,600 --> 00:17:43,639 Speaker 1: Does that fight for subscribers become more difficult with the 319 00:17:43,680 --> 00:17:47,440 Speaker 1: idea of opening up to advertising. We heard from read 320 00:17:47,440 --> 00:17:50,280 Speaker 1: Hastings saying, you know, something that he had resisted for 321 00:17:50,320 --> 00:17:53,360 Speaker 1: so long, the idea of putting ads on Netflix He's 322 00:17:53,400 --> 00:17:55,880 Speaker 1: open to now. Yeah, it really was a sacred cow 323 00:17:55,960 --> 00:17:57,680 Speaker 1: for a long time. But if they're looking at the 324 00:17:57,720 --> 00:18:00,240 Speaker 1: fact that you know, customers may not want to be 325 00:18:00,280 --> 00:18:03,560 Speaker 1: spending twelve dollars a month, well five dollars a month 326 00:18:03,640 --> 00:18:06,480 Speaker 1: or wherever they end up pricing, an ad supported model 327 00:18:06,760 --> 00:18:09,320 Speaker 1: is clearly more affordable. And one of the reasons that 328 00:18:09,600 --> 00:18:13,399 Speaker 1: in relative terms television wasn't that expensive for us to 329 00:18:13,440 --> 00:18:15,880 Speaker 1: watch is because it was all subsidized by advertising, say 330 00:18:15,920 --> 00:18:19,240 Speaker 1: with most media, and so pivoting to like actually kind 331 00:18:19,240 --> 00:18:22,280 Speaker 1: of tried and trusted model is clearly something they're willing 332 00:18:22,280 --> 00:18:24,040 Speaker 1: to try. They think there are hundred million households out 333 00:18:24,040 --> 00:18:26,960 Speaker 1: there sharing Netflix passport passwords. If they can convince those 334 00:18:27,000 --> 00:18:31,160 Speaker 1: guys to go to a an ad supported approach, then 335 00:18:31,760 --> 00:18:34,040 Speaker 1: they clearly see some upside. Yeah, I'm glad you mentioned 336 00:18:34,080 --> 00:18:38,879 Speaker 1: the password sharing crackdown. How does Netflix actually get those 337 00:18:38,920 --> 00:18:44,000 Speaker 1: subscribers back? Is that enough to turn things around on 338 00:18:44,040 --> 00:18:47,239 Speaker 1: the bottom line for them? It's a tough one. I mean, 339 00:18:47,240 --> 00:18:49,720 Speaker 1: I think basically the places they need to look for 340 00:18:49,720 --> 00:18:52,960 Speaker 1: growth are outside the US. Probably in the US, anyone 341 00:18:53,000 --> 00:18:55,720 Speaker 1: who wants Netflix has got Netflix already at this stage. 342 00:18:55,760 --> 00:18:58,440 Speaker 1: You need to look to other markets. That's why they're 343 00:18:58,480 --> 00:19:03,439 Speaker 1: massively expanding things like rein language content, because you know, 344 00:19:03,800 --> 00:19:07,880 Speaker 1: Korean soaps are huge across Asia. If they can eat 345 00:19:07,920 --> 00:19:09,880 Speaker 1: into some of those markets, and that they did add 346 00:19:09,880 --> 00:19:14,200 Speaker 1: a million subscribers in Asia in the in the courts, 347 00:19:14,240 --> 00:19:17,400 Speaker 1: that is possibly the best opportunity for growth. In the US, 348 00:19:17,480 --> 00:19:19,160 Speaker 1: it's a question of stasis and trying to be sure 349 00:19:19,200 --> 00:19:21,840 Speaker 1: they didn't lose the subscribers they have, and certainly we 350 00:19:21,880 --> 00:19:24,480 Speaker 1: did see the popularity of squid Game last year, but 351 00:19:24,520 --> 00:19:28,800 Speaker 1: apparently not enough to dampen the bleeding that we saw 352 00:19:29,280 --> 00:19:32,399 Speaker 1: on subscribers in that earnings report. Alex web great to 353 00:19:32,400 --> 00:19:34,040 Speaker 1: have you on with us this morning. Thanks for this. 354 00:19:34,400 --> 00:19:37,680 Speaker 1: Alex Webb, Bloomberg Quick Take anchor and tech columnist for 355 00:19:37,760 --> 00:19:40,520 Speaker 1: Bloomberg Opinion, and again checking Netflix shares in the pre 356 00:19:40,600 --> 00:19:45,240 Speaker 1: market after that subscriber loss. Their down almost twenty six 357 00:19:45,480 --> 00:19:49,040 Speaker 1: percent in early trading. Right now, SMP futures are down 358 00:19:49,040 --> 00:19:51,760 Speaker 1: four points, Staff futures down six, Dance that futures down 359 00:19:51,760 --> 00:19:55,000 Speaker 1: thirty three points. Just ahead, more U S weapons heading 360 00:19:55,000 --> 00:19:58,080 Speaker 1: to Ukraine and the Biden administration punts on appealing the 361 00:19:58,119 --> 00:20:01,159 Speaker 1: travel mask rule top store in the morning. Just ahead, 362 00:20:01,480 --> 00:20:08,920 Speaker 1: you're listening to Bloomberg Daybreak Bloomberg eleven three oh weather 363 00:20:08,960 --> 00:20:10,840 Speaker 1: in the early clouds will give way to sunshine today 364 00:20:10,840 --> 00:20:12,640 Speaker 1: with a high near sixty degrees. Will be back near 365 00:20:12,720 --> 00:20:15,960 Speaker 1: sixty with more clouds than sunshine tomorrow, partly sunny near 366 00:20:16,040 --> 00:20:19,120 Speaker 1: seventy by Friday. Right now forty two degrees in Central Park. 367 00:20:22,280 --> 00:20:26,840 Speaker 1: Broadcasting live from the Bloomberg Interactive Broker Studio in New York. 368 00:20:26,960 --> 00:20:30,040 Speaker 1: Bloomberg E living free on to Washington, d C, Bloomberg 369 00:20:30,160 --> 00:20:33,439 Speaker 1: nine one to Boston, Bloomberg one of six, one to 370 00:20:33,480 --> 00:20:37,320 Speaker 1: San Francisco, Bloomberg sixty to the country, Sirius XM to 371 00:20:37,480 --> 00:20:40,520 Speaker 1: A one nineteen and around the globe, the Bloomberg Business 372 00:20:40,560 --> 00:20:44,640 Speaker 1: at and Bloomberg Radio dot Com. This is Bloomberg Daybreak. 373 00:20:50,520 --> 00:20:52,680 Speaker 1: It's five thirty on Wall Street. Good morning. I'm Nathan 374 00:20:52,720 --> 00:20:55,639 Speaker 1: Hager and I'm Karen Moscow, and we are just about 375 00:20:55,640 --> 00:20:58,080 Speaker 1: four hours away from the open of US trading. Let's 376 00:20:58,080 --> 00:20:59,399 Speaker 1: get you up to date in the news. You need 377 00:20:59,480 --> 00:21:01,720 Speaker 1: to know what the sour and we begin with streaming 378 00:21:01,720 --> 00:21:06,120 Speaker 1: a giant Netflix, which is slumping after Tuesday's shocking earnings. 379 00:21:06,119 --> 00:21:09,120 Speaker 1: You report and shares are currently down twenty six percent. 380 00:21:09,480 --> 00:21:11,760 Speaker 1: We get the latest live from Bloomberg's Renna need a 381 00:21:11,800 --> 00:21:15,119 Speaker 1: young good morning, Ready to Good morning, Karen. Netflix unexpectedly 382 00:21:15,200 --> 00:21:17,879 Speaker 1: lost subscribers for the first time in a decade, and 383 00:21:17,920 --> 00:21:21,000 Speaker 1: the streaming giant sees another drop of two million users 384 00:21:21,040 --> 00:21:24,280 Speaker 1: this quarter as competition continues to heat up, so in 385 00:21:24,359 --> 00:21:28,040 Speaker 1: an effort to improve results, co CEO Read Hastings says 386 00:21:28,080 --> 00:21:32,280 Speaker 1: Netflix will introduce a cheaper, advertising supported option for subscribers 387 00:21:32,280 --> 00:21:34,760 Speaker 1: in the next couple of years. He also says the 388 00:21:34,760 --> 00:21:38,360 Speaker 1: company will start to crack down on people sharing their passwords. 389 00:21:38,880 --> 00:21:41,399 Speaker 1: Live in New York. I'm gonna need a young Bloomberg daybreak, 390 00:21:41,400 --> 00:21:43,600 Speaker 1: all right, we need to thank you. Sixteen more companies 391 00:21:43,640 --> 00:21:47,480 Speaker 1: in the SMP report earnings today, including Tesla, Bloomberg Intelligence 392 00:21:47,560 --> 00:21:50,560 Speaker 1: is watching how competition and global supply chain disruptions are 393 00:21:50,600 --> 00:21:55,280 Speaker 1: testing the electric vehicle giants ambitious annual delivery goals well overseas, Nathan, 394 00:21:55,320 --> 00:21:58,840 Speaker 1: The key Ukrainian port city of Mariopol is in jeopardy 395 00:21:58,880 --> 00:22:02,240 Speaker 1: as defenders say they are outnumbered by Russia. Ukraine is 396 00:22:02,280 --> 00:22:05,040 Speaker 1: appealing to world leaders for help amid Russia is offensive 397 00:22:05,080 --> 00:22:08,960 Speaker 1: in the country's southern and eastern region. Democratic Congressman Reuben 398 00:22:09,000 --> 00:22:12,840 Speaker 1: Diego of Arizona tells Bloomberg's Joe Matthew the US is 399 00:22:12,880 --> 00:22:16,200 Speaker 1: continuing to supply Ukraine with military aid, which should help 400 00:22:16,200 --> 00:22:18,600 Speaker 1: in their fight in the Don Boss region. By US 401 00:22:18,680 --> 00:22:22,520 Speaker 1: to trying them Jeff and and their own artillery as 402 00:22:22,560 --> 00:22:25,080 Speaker 1: well as radars to actually counter the artillery is got 403 00:22:25,119 --> 00:22:27,080 Speaker 1: into contracts to know where it's coming from. Ukraine is 404 00:22:27,119 --> 00:22:29,480 Speaker 1: going to be able to have some levels of the 405 00:22:29,640 --> 00:22:33,080 Speaker 1: evening of the playing field and Democratic Congressman Reuben Diego 406 00:22:33,119 --> 00:22:36,200 Speaker 1: speaking with Joe Matthew on Bloomberg Sound on Catch the 407 00:22:36,240 --> 00:22:39,720 Speaker 1: program weekdays at five pm Eastern on Bloomberg Radio. Turning 408 00:22:39,760 --> 00:22:41,920 Speaker 1: to the economy Now. For the first time since March 409 00:22:41,960 --> 00:22:46,520 Speaker 1: of US tenure, real yields briefly turned positive this morning. 410 00:22:46,720 --> 00:22:49,480 Speaker 1: It comes as Chicago FED President Charles Evans says interest 411 00:22:49,560 --> 00:22:51,960 Speaker 1: rates will probably rise above the neutral level, but it 412 00:22:51,960 --> 00:22:54,879 Speaker 1: will hinge on weather inflation cools as expected. And in 413 00:22:54,920 --> 00:22:58,040 Speaker 1: the nation's capital, Nathan, the Justice Department says it's ready 414 00:22:58,040 --> 00:23:00,880 Speaker 1: to appeal a ruling by a Florida to struck down 415 00:23:00,880 --> 00:23:04,679 Speaker 1: the Biden administrations and nationwide mask mandate on planes, trains, 416 00:23:04,920 --> 00:23:07,919 Speaker 1: and other public transport. The department said it will appeal 417 00:23:07,960 --> 00:23:10,320 Speaker 1: if the CDC to Science Mass should remain in place 418 00:23:10,400 --> 00:23:14,120 Speaker 1: pass the current assessment period that's due to expire May three. 419 00:23:14,520 --> 00:23:17,159 Speaker 1: Future is this morning are moving lower. SNP Future is 420 00:23:17,200 --> 00:23:20,800 Speaker 1: down about five points and down. Futures down five nasdack 421 00:23:20,880 --> 00:23:23,679 Speaker 1: futures down thirty. The ten year treasury up twelve thirties. 422 00:23:23,680 --> 00:23:26,080 Speaker 1: Seconds held two point eight nine percent, and they yield 423 00:23:26,119 --> 00:23:29,119 Speaker 1: on the two year two point five percent. Straight to 424 00:23:29,200 --> 00:23:32,359 Speaker 1: head your latest local headlines plus a check of sports, 425 00:23:32,760 --> 00:23:39,439 Speaker 1: and this is Bloomberg. Thank you, Caring five thirty three 426 00:23:39,440 --> 00:23:41,640 Speaker 1: on Wall Street, forty two degrees in Central Park. They've 427 00:23:41,640 --> 00:23:44,240 Speaker 1: cleared the accident on the northbound Van Waken College Point. 428 00:23:44,240 --> 00:23:46,440 Speaker 1: We'll update you on the delays in traffic. First, Michael 429 00:23:46,440 --> 00:23:48,080 Speaker 1: Bars here with more on what's going on in New 430 00:23:48,160 --> 00:23:50,639 Speaker 1: York and around the world. Michael, thank you very much, Nathan. 431 00:23:50,720 --> 00:23:53,520 Speaker 1: It's one of the largest cash settlements involving the Catholic 432 00:23:53,600 --> 00:23:57,439 Speaker 1: Church in the US. The Catholic Diocese of New Jersey 433 00:23:57,480 --> 00:24:00,400 Speaker 1: has agreed to pay eighty seven point five million dollars 434 00:24:00,440 --> 00:24:03,800 Speaker 1: to settle claims involving clergy sex abuse with about three 435 00:24:03,880 --> 00:24:07,680 Speaker 1: hundred alleged victims. The agreement between the Diocese of Camden, 436 00:24:07,800 --> 00:24:11,200 Speaker 1: which encompasses six counties in the southern New Jersey on 437 00:24:11,240 --> 00:24:14,520 Speaker 1: the outskirts of Philadelphia, and the plaintiffs, was filed with 438 00:24:14,560 --> 00:24:17,760 Speaker 1: the US Bankruptcy Court in Camden. Mark Crawford, with a 439 00:24:17,800 --> 00:24:21,800 Speaker 1: state chapter of the Survivor's Network of Those abused by priests, says. 440 00:24:21,840 --> 00:24:26,159 Speaker 1: This settlement also includes the diocese releasing documents detailing the 441 00:24:26,200 --> 00:24:30,000 Speaker 1: alleged abus, with allegations dating back in some instances to 442 00:24:30,080 --> 00:24:33,520 Speaker 1: the nineteen fifties, says victims, you know who in the sixties, 443 00:24:33,520 --> 00:24:37,639 Speaker 1: seventies and eighties has come forward, So these allegations, I know, 444 00:24:38,240 --> 00:24:44,680 Speaker 1: the fifties, sixties, seventies, you know, throughout several decades. Crawford 445 00:24:44,720 --> 00:24:48,120 Speaker 1: says he's glad it has come to fruition Connecticut State 446 00:24:48,160 --> 00:24:51,240 Speaker 1: police say a trooper who fired seven gunshots into a 447 00:24:51,320 --> 00:24:53,480 Speaker 1: car and killed a man in twenty twenty after a 448 00:24:53,560 --> 00:24:56,880 Speaker 1: high speed chase has been arrested in connection with the shooting. 449 00:24:57,160 --> 00:25:00,760 Speaker 1: Authorities say Trooper Bryan North turned himself in into the 450 00:25:00,800 --> 00:25:04,480 Speaker 1: state Inspector General. The Chinese health officials has four million 451 00:25:04,520 --> 00:25:07,600 Speaker 1: more people in Shanghai have been allowed to leave their homes. 452 00:25:07,640 --> 00:25:11,280 Speaker 1: Ask your ownA virus quarantine rules ease that brings to 453 00:25:11,320 --> 00:25:14,159 Speaker 1: almost twelve million people now who have been allowed to 454 00:25:14,240 --> 00:25:17,399 Speaker 1: leave their homes. The tunnel fire areas ravaging parts of 455 00:25:17,440 --> 00:25:21,000 Speaker 1: the flag Staff. Arizona area officials say it has consume 456 00:25:21,080 --> 00:25:24,760 Speaker 1: more than six thousand acres. Patrese Horsemen, chairman of the 457 00:25:24,960 --> 00:25:29,560 Speaker 1: Board of Supervisors for Coconino County, said the fire's rapid 458 00:25:29,600 --> 00:25:33,159 Speaker 1: advancement is caused by a dangerous combination of factors. The 459 00:25:33,200 --> 00:25:36,439 Speaker 1: tunnel fire has been fueled by high winds and derived 460 00:25:36,480 --> 00:25:42,159 Speaker 1: conditions in the county has deployed all available resources. We 461 00:25:42,280 --> 00:25:45,480 Speaker 1: have requested assistance from the state of Arizona and the 462 00:25:45,520 --> 00:25:49,359 Speaker 1: federal government. Patrese Horsemen with Coconino Counties as thousands have 463 00:25:49,400 --> 00:25:52,000 Speaker 1: had to flee their homes. Global News twenty four hours 464 00:25:52,000 --> 00:25:54,560 Speaker 1: a day on air and on Bloomberg Quick Take, powered 465 00:25:54,560 --> 00:25:58,080 Speaker 1: by more than journalists and analysts more than a d 466 00:25:58,200 --> 00:26:07,359 Speaker 1: twenty countries. Michael barn Is, Bloomberg. Nathan thanks Michael on 467 00:26:07,400 --> 00:26:09,359 Speaker 1: Wall Street time for the Bloomberg Sports that Day with 468 00:26:09,440 --> 00:26:13,040 Speaker 1: John Session Nathan. Nineteen innings of baseball played at City 469 00:26:13,080 --> 00:26:15,199 Speaker 1: Field and two wins for the Mets, who are a 470 00:26:15,240 --> 00:26:17,840 Speaker 1: major league best nine and three. A double editor swep 471 00:26:17,880 --> 00:26:19,960 Speaker 1: of the Giants, Mets won the opener five to four 472 00:26:20,400 --> 00:26:23,159 Speaker 1: in ten innings. They had trailed four to one. Francisco 473 00:26:23,240 --> 00:26:26,200 Speaker 1: Lindor had the game tying and winning hits. They finished 474 00:26:26,240 --> 00:26:29,120 Speaker 1: the sweep winning three to one. Max Scherzer has been 475 00:26:29,200 --> 00:26:31,640 Speaker 1: as advertised, he's already three and oh. His first met 476 00:26:31,680 --> 00:26:34,159 Speaker 1: started home was a near no hitter, lost it in 477 00:26:34,240 --> 00:26:36,640 Speaker 1: a sixth inname, but Scherzer gave up just the one 478 00:26:36,720 --> 00:26:39,240 Speaker 1: hit struck at ten and seven, and it's as for 479 00:26:39,359 --> 00:26:42,320 Speaker 1: Garrett Call, his struggles continue. That the Yankees one in 480 00:26:42,359 --> 00:26:45,080 Speaker 1: Detroit four to two. It was due to their bullpen, 481 00:26:45,200 --> 00:26:48,600 Speaker 1: especially Clark Schmidt. Cole couldn't get out of the second 482 00:26:48,720 --> 00:26:51,200 Speaker 1: in and he had five walks and three starts, Call 483 00:26:51,720 --> 00:26:54,320 Speaker 1: making thirty six million dollars as yet to win as 484 00:26:54,359 --> 00:26:57,280 Speaker 1: e r A is over six. His manager is Aaron Boom. 485 00:26:57,440 --> 00:26:59,439 Speaker 1: I really believe he's collis for a big ear for us, 486 00:26:59,680 --> 00:27:02,679 Speaker 1: and uh you know he's gonna you know, carry us 487 00:27:02,680 --> 00:27:06,480 Speaker 1: for a long stretch. Uh, you know, just hasn't gone 488 00:27:06,480 --> 00:27:09,359 Speaker 1: his way so far. But um, I do feel like 489 00:27:09,359 --> 00:27:11,520 Speaker 1: he's close. He's just got a you know, get locked 490 00:27:11,520 --> 00:27:13,800 Speaker 1: in with his rhythm and and he'll take it from there. 491 00:27:13,840 --> 00:27:16,200 Speaker 1: And though the Yanks one, the hitting woes continued. Kyle 492 00:27:16,240 --> 00:27:19,960 Speaker 1: hey Gasaoka's batting one oh three. Joey Gallo, who went 493 00:27:19,960 --> 00:27:22,280 Speaker 1: over four with streak at fourth breakouts, is batting one. 494 00:27:23,320 --> 00:27:25,200 Speaker 1: Another shutout win with the Rangers. That's three in a 495 00:27:25,280 --> 00:27:27,800 Speaker 1: row first time since nineteen seventy three at the Garden 496 00:27:27,880 --> 00:27:31,200 Speaker 1: thirty one stays for egors Histerician. Rangers got their fiftieth 497 00:27:31,240 --> 00:27:34,080 Speaker 1: win three nothing over Winnipeg NBA Playhouse. Miami got forty 498 00:27:34,080 --> 00:27:36,480 Speaker 1: five points from Jimmy Butler and went up to nothing 499 00:27:36,480 --> 00:27:40,640 Speaker 1: on Atlanta. Memphis beat Minnesota, New Orleans upset Phoenix. Both 500 00:27:40,680 --> 00:27:43,480 Speaker 1: series are tied a one net Celtics game to tonight 501 00:27:43,600 --> 00:27:47,880 Speaker 1: in Boston. John Stash Edward Bloomberg Sports. Thanks John seven 502 00:27:47,880 --> 00:27:50,159 Speaker 1: on Wall Street time for the tri State Business Report 503 00:27:50,200 --> 00:27:53,480 Speaker 1: with Bloomberg z Corey. New York City residents at more 504 00:27:53,520 --> 00:27:56,400 Speaker 1: than three thousand buildings canna breathe a sigh of relief 505 00:27:56,920 --> 00:27:59,199 Speaker 1: now that workers have struck a labor deal, ending the 506 00:27:59,280 --> 00:28:03,440 Speaker 1: possibility of a strike. More than thirty thou dorman superintendents 507 00:28:03,440 --> 00:28:07,000 Speaker 1: and other building employees have negotiated a new contract with 508 00:28:07,080 --> 00:28:10,760 Speaker 1: the Realty Advisory Board on Labor Relations. A union bidding 509 00:28:10,760 --> 00:28:14,159 Speaker 1: to represent Amazon workers at a New Jersey facility has 510 00:28:14,200 --> 00:28:18,360 Speaker 1: withdrawn its request. Local seven thirteen of the International Brotherhood 511 00:28:18,359 --> 00:28:21,399 Speaker 1: of Trade Unions filed the petition last week, seeking to 512 00:28:21,480 --> 00:28:25,119 Speaker 1: represent two hundred workers in an Amazon delivery station in Bayonne. 513 00:28:25,840 --> 00:28:28,879 Speaker 1: Two environmental bills are about to take effect in New Jersey, 514 00:28:28,920 --> 00:28:32,880 Speaker 1: causing major changes in the way restaurants operate. A ban 515 00:28:33,000 --> 00:28:37,240 Speaker 1: on plastic bags and foam containers and new regulations for 516 00:28:37,359 --> 00:28:41,320 Speaker 1: takeout containers so forced restaurant owners to I'm more expensive 517 00:28:41,440 --> 00:28:46,000 Speaker 1: environmentally friendly products that yourew Bloomberg Trying State Business Report, 518 00:28:46,120 --> 00:28:49,880 Speaker 1: I'm ed Corey. Thanks on Wall Street. Bloomberg Radio is 519 00:28:49,920 --> 00:28:52,160 Speaker 1: on the air from San Francisco to New York, London 520 00:28:52,200 --> 00:28:54,440 Speaker 1: to Hong Kong. Let's check in with our global news 521 00:28:54,440 --> 00:28:56,160 Speaker 1: team for some of the top stories heard on our 522 00:28:56,200 --> 00:29:02,880 Speaker 1: three hundred affiliate radio stations around the world. I'm Steve Potos, 523 00:29:02,920 --> 00:29:05,440 Speaker 1: Kan ten Jen Winds in New York. We're talking about 524 00:29:05,440 --> 00:29:08,239 Speaker 1: a union seeking to represent Amazon workers out of New 525 00:29:08,320 --> 00:29:12,920 Speaker 1: Jersey facility withdrawing the petition for a vote. On Corny Donahoe, 526 00:29:13,000 --> 00:29:16,520 Speaker 1: on kater h in Houston. Marathon Petroleum snaps up oil 527 00:29:16,600 --> 00:29:20,280 Speaker 1: from Ecuador on Russian sanctions. I'm John Tucker for w 528 00:29:20,400 --> 00:29:22,960 Speaker 1: b d M in Chicago. I'm reporting that side and 529 00:29:23,000 --> 00:29:26,880 Speaker 1: oil futures climbed to a record on global supply concern. 530 00:29:27,320 --> 00:29:30,560 Speaker 1: I'm Joan Doniger telling Hey hy W listeners in Philadelphia 531 00:29:30,760 --> 00:29:34,680 Speaker 1: about Mavis Discount Tires expansion. I'm Caroline had Comed Bloombag 532 00:29:34,760 --> 00:29:38,400 Speaker 1: Dave Disiato and London. We're reporting on new diversity targets 533 00:29:38,400 --> 00:29:41,360 Speaker 1: for UK listed companies being brought in by the Financial 534 00:29:41,400 --> 00:29:45,440 Speaker 1: Conduct Authorities. I had Cory on w w J in Detroit. 535 00:29:45,520 --> 00:29:48,160 Speaker 1: I'm reporting cars dled in Europe fell for a ninth 536 00:29:48,240 --> 00:29:50,320 Speaker 1: month in a row. Those are some of the stories 537 00:29:50,360 --> 00:29:53,200 Speaker 1: our twenty hundred Bloomberg journalists and analysts are working on 538 00:29:53,240 --> 00:29:55,520 Speaker 1: this morning around the world. It's five thirty nine on 539 00:29:55,560 --> 00:29:59,400 Speaker 1: Wall Street. The following is an editorial from Bloomberg Opinion. 540 00:29:59,640 --> 00:30:02,600 Speaker 1: By most measures, the U s economy is doing well, 541 00:30:03,040 --> 00:30:06,200 Speaker 1: but not when it comes to inflation, and prices will 542 00:30:06,280 --> 00:30:09,200 Speaker 1: keep rising as long as the economy faces an excessive 543 00:30:09,280 --> 00:30:13,320 Speaker 1: demand over supply. So it's needed our steps to boost supply. 544 00:30:13,680 --> 00:30:17,720 Speaker 1: Policymakers should keep three broad approaches in mind. First, they 545 00:30:17,720 --> 00:30:20,920 Speaker 1: should increase the rewards for work, especially for those with 546 00:30:21,000 --> 00:30:24,880 Speaker 1: low incomes, for example by permanently expanding the earned income 547 00:30:24,920 --> 00:30:28,520 Speaker 1: tax credit. Second, they should fight the trend toward excessive 548 00:30:28,600 --> 00:30:34,200 Speaker 1: labor market regulation, such as absurdly strict occupational licensing requirements. 549 00:30:34,400 --> 00:30:38,640 Speaker 1: And Third, they should reset immigration policy to welcome more workers, 550 00:30:39,200 --> 00:30:42,640 Speaker 1: especially those with skills in short supply. The current bout 551 00:30:42,640 --> 00:30:46,280 Speaker 1: of inflation could be addressed solely by restraining demand, but 552 00:30:46,400 --> 00:30:49,720 Speaker 1: that carries a risk of recession. Expanding the country's capacity 553 00:30:49,760 --> 00:30:53,400 Speaker 1: to produce should be part of the solution. This editorial 554 00:30:53,400 --> 00:30:56,920 Speaker 1: was written by the Bloomberg Opinion Editorial Board. I'm David Shipley. 555 00:30:56,960 --> 00:30:59,600 Speaker 1: For more Bloomberg Opinion, please go to Bloomberg dot com. 556 00:30:59,680 --> 00:31:03,440 Speaker 1: Slash opinion or op and go on the Bloomberg terminal. 557 00:31:03,680 --> 00:31:07,440 Speaker 1: This has been Bloomberg Opinion. Listen for Bloomberg opinion editorials 558 00:31:07,480 --> 00:31:10,440 Speaker 1: every weekday. At this time, terminal customers can read more 559 00:31:10,480 --> 00:31:13,480 Speaker 1: at O P I, n GO, SMP Futures down two 560 00:31:13,560 --> 00:31:17,280 Speaker 1: points down, futures up one NASTACT futures down twenty. You're 561 00:31:17,320 --> 00:31:24,040 Speaker 1: listening to Bloomberg Daybreak Bloomberg eleven three oh weather highs 562 00:31:24,120 --> 00:31:26,880 Speaker 1: near sixty today with clouds giving away to sunshine. Will 563 00:31:26,880 --> 00:31:29,680 Speaker 1: have more clouds than sun tomorrow. Be hind your sixty 564 00:31:29,760 --> 00:31:32,360 Speaker 1: up to near seventy by Friday. Right now forty two 565 00:31:32,440 --> 00:31:39,320 Speaker 1: and cloudy in Central Park Markets. Headlines and breaking news 566 00:31:39,360 --> 00:31:42,000 Speaker 1: twenty four hours a day at Bloomberg dot com. The 567 00:31:42,000 --> 00:31:46,600 Speaker 1: Bloomberg Business Outland at Bloomberg Quicktape is a Bloomberg Business 568 00:31:46,640 --> 00:31:55,360 Speaker 1: flash him good morning, I'm catering Moscow and US stock 569 00:31:55,400 --> 00:31:58,560 Speaker 1: index future is a little change this morning. Investors weighing 570 00:31:58,560 --> 00:32:01,360 Speaker 1: the impact of rising we yields on the appeal of 571 00:32:01,440 --> 00:32:04,320 Speaker 1: riskier assets and Netflix putting a damper on the earning 572 00:32:04,360 --> 00:32:08,080 Speaker 1: season outlook following its earnings release. Those shares down almost 573 00:32:08,080 --> 00:32:11,120 Speaker 1: twenty seven percent this morning, s and P futures again 574 00:32:11,160 --> 00:32:14,880 Speaker 1: little change. Down futures are as well. Now's deck futures, 575 00:32:14,920 --> 00:32:17,600 Speaker 1: you can count them into little change. The decks in 576 00:32:17,640 --> 00:32:20,560 Speaker 1: Germany up one point two percent ten your treasury of 577 00:32:20,640 --> 00:32:22,960 Speaker 1: eleven thirty seconds yell two point eight nine percent. The 578 00:32:23,080 --> 00:32:25,320 Speaker 1: yield on the two year two point five six percent. 579 00:32:25,680 --> 00:32:28,160 Speaker 1: NIMEX screwed oil is at three quarters of a percent, 580 00:32:28,240 --> 00:32:30,320 Speaker 1: or seventy eight cents and a hundred three dollars thirty 581 00:32:30,320 --> 00:32:33,040 Speaker 1: four cents of barrel comics gold is down half percent 582 00:32:33,120 --> 00:32:36,080 Speaker 1: or nine dollars thirty cents at nineteen forty nine sixty announce. 583 00:32:36,480 --> 00:32:38,800 Speaker 1: The Euro one point eight five eight against the dollar 584 00:32:38,880 --> 00:32:41,200 Speaker 1: British bound one point three zero three three, the yat 585 00:32:41,240 --> 00:32:44,560 Speaker 1: at one twenty seven point nine five and Bitcoin this 586 00:32:44,640 --> 00:32:47,400 Speaker 1: morning up seven tenths percent at forty one thousand, five 587 00:32:47,520 --> 00:32:50,640 Speaker 1: hundred eighty dollars. And that's a bloomberg business flash. Now 588 00:32:50,680 --> 00:32:52,920 Speaker 1: here's Michael Barr with more on what's going on around 589 00:32:52,960 --> 00:32:55,440 Speaker 1: the world. Michael Darren, thank you very much. Russia is 590 00:32:55,520 --> 00:32:58,520 Speaker 1: launching an offensive in Ukraine in an attempt to slice 591 00:32:58,560 --> 00:33:01,040 Speaker 1: the country into and I sellate part of the don 592 00:33:01,120 --> 00:33:05,479 Speaker 1: Vis region. Russian forces assaulted cities and towns along hundreds 593 00:33:05,480 --> 00:33:08,480 Speaker 1: of miles, and poured more troops into the country to 594 00:33:08,520 --> 00:33:13,200 Speaker 1: control Ukraine's eastern industrial heartland. The Justice Department says it 595 00:33:13,240 --> 00:33:15,640 Speaker 1: may appeal a judge's ruling that's struck down the mask 596 00:33:15,760 --> 00:33:19,640 Speaker 1: mandate on public transportation if the CDC the sides at 597 00:33:19,640 --> 00:33:23,080 Speaker 1: the mandate is still needed. In MLB, the Yankees one, 598 00:33:23,160 --> 00:33:26,200 Speaker 1: the Mets swept a double header against the Giants. The 599 00:33:26,280 --> 00:33:29,880 Speaker 1: Nationals swept a double header against the Diamondbacks. The Red 600 00:33:29,920 --> 00:33:32,760 Speaker 1: Sox one, the A's beat the Orioles to one. The 601 00:33:32,800 --> 00:33:36,120 Speaker 1: game was just played before the smallest Oakland crowd of 602 00:33:36,200 --> 00:33:39,360 Speaker 1: just more than thirty seven hundred fans. And years. In 603 00:33:39,440 --> 00:33:42,200 Speaker 1: the NHL, the Rangers and Bruins one. The Islanders lost 604 00:33:42,200 --> 00:33:45,120 Speaker 1: in o t to the Panthers. Three. To Global News 605 00:33:45,120 --> 00:33:48,200 Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake, 606 00:33:48,400 --> 00:33:51,040 Speaker 1: powered by more than twenty seven hundred journalists and analysts 607 00:33:51,160 --> 00:33:53,920 Speaker 1: more than a hundred twenty countries. Michael Barr and this 608 00:33:54,000 --> 00:33:57,400 Speaker 1: is Bloomberg, Nathan. Yeah, that attendants count is just crazy. 609 00:33:57,400 --> 00:33:59,800 Speaker 1: Thank you, Michael. It is five nine on Wall Street 610 00:34:00,080 --> 00:34:03,760 Speaker 1: from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. 611 00:34:03,840 --> 00:34:05,800 Speaker 1: We want to get more now and the disappointing first 612 00:34:05,880 --> 00:34:08,840 Speaker 1: quarter results for Netflix. The shares are continuing to be 613 00:34:08,880 --> 00:34:11,840 Speaker 1: punished in pre market trading, now down more than twenty 614 00:34:11,920 --> 00:34:15,480 Speaker 1: six percent. Githa Wronganathan is back with US now, Senior 615 00:34:15,560 --> 00:34:19,239 Speaker 1: media analyst for Bloomberg Intelligence. Geitha, good morning. I know 616 00:34:19,320 --> 00:34:22,319 Speaker 1: you've been positive on Netflix in the past, but after 617 00:34:22,560 --> 00:34:26,080 Speaker 1: a subscriber loss of two hundred thousand and a projection 618 00:34:26,160 --> 00:34:29,600 Speaker 1: for two million more, are you changing your case on Netflix? 619 00:34:30,840 --> 00:34:34,040 Speaker 1: Good morning, Nathan, Yes, I think I am. Um, So, 620 00:34:34,360 --> 00:34:38,279 Speaker 1: you know, obviously I'm going into the first quarter. You know, 621 00:34:38,400 --> 00:34:40,520 Speaker 1: we knew it was going to be a fairly light quarter. 622 00:34:41,040 --> 00:34:46,279 Speaker 1: They had guided to some fairly tepid subscriber gains. But 623 00:34:46,360 --> 00:34:49,040 Speaker 1: I think yesterday, you know, it was it really kind 624 00:34:49,080 --> 00:34:51,399 Speaker 1: of came as a shock. I don't think anybody saw 625 00:34:51,520 --> 00:34:54,160 Speaker 1: this even in their you know, kind of wildest imagination. 626 00:34:54,680 --> 00:34:57,800 Speaker 1: But there seems to be now a fundamental question about 627 00:34:58,320 --> 00:35:02,160 Speaker 1: the whole Netflix investment. Sis Um, you know they will 628 00:35:02,239 --> 00:35:04,960 Speaker 1: first there's some questions about whether subscriber growth is going 629 00:35:05,040 --> 00:35:06,719 Speaker 1: to be linear, whether it's kind of going to be 630 00:35:06,880 --> 00:35:08,640 Speaker 1: smooth or not. And I think, well, you have kind 631 00:35:08,640 --> 00:35:10,960 Speaker 1: of gotten used to the fact that it might not 632 00:35:11,160 --> 00:35:13,520 Speaker 1: be smooth, it might not be linear. But I think 633 00:35:13,560 --> 00:35:16,000 Speaker 1: now we're we're kind of looking at more fundamental questions 634 00:35:16,000 --> 00:35:19,479 Speaker 1: about what the total addressable market itself is and whether 635 00:35:19,560 --> 00:35:22,600 Speaker 1: they kind of reached a maturation point in most markets. 636 00:35:23,160 --> 00:35:26,400 Speaker 1: What do you think about what the CEO Read Hastings 637 00:35:26,560 --> 00:35:30,799 Speaker 1: had to say after the earnings yesterday that cracking down 638 00:35:31,040 --> 00:35:35,160 Speaker 1: on passwords sharing is something that can help turn things around, 639 00:35:35,360 --> 00:35:40,160 Speaker 1: that they can move into advertising, potentially a lower priced 640 00:35:40,440 --> 00:35:43,960 Speaker 1: price point for subscribers to try to get some of 641 00:35:44,000 --> 00:35:48,279 Speaker 1: the nutrition back. I think those are both Nathan uh, 642 00:35:48,600 --> 00:35:51,960 Speaker 1: you know, double edged swords. So with with fastword sharing, Yes, 643 00:35:52,120 --> 00:35:54,920 Speaker 1: they didn't mention that about a hundred million households across 644 00:35:54,920 --> 00:35:57,200 Speaker 1: the world, So in addition to the two million members, 645 00:35:57,239 --> 00:35:59,280 Speaker 1: they have a hundred million households who are possibly sharing 646 00:35:59,320 --> 00:36:02,520 Speaker 1: Netflix account. But then again you have to wonder, yes, 647 00:36:02,640 --> 00:36:05,200 Speaker 1: you can start to crack down in a very phased, 648 00:36:05,239 --> 00:36:08,239 Speaker 1: in a very cautious way. Um, but again, is that 649 00:36:08,440 --> 00:36:10,359 Speaker 1: really going to be a game changer? Is that going 650 00:36:10,440 --> 00:36:12,320 Speaker 1: to move the needle in terms of subscriptions? Is that 651 00:36:12,360 --> 00:36:14,600 Speaker 1: going to move the needle in terms of revenue. Yes, 652 00:36:14,680 --> 00:36:16,319 Speaker 1: it could have some effect on the margin, but again 653 00:36:16,400 --> 00:36:19,880 Speaker 1: I don't think anything is really going to have a 654 00:36:20,000 --> 00:36:23,359 Speaker 1: material effect on the model, at least for another one 655 00:36:23,560 --> 00:36:26,760 Speaker 1: to one and a half years. UM. So, yes, they 656 00:36:26,840 --> 00:36:31,080 Speaker 1: did talk about some you know, new ways of increasing monetization, 657 00:36:31,120 --> 00:36:34,320 Speaker 1: of improving engagement, of increasing the top line. But again, 658 00:36:34,640 --> 00:36:38,080 Speaker 1: I think the fundamental thesis itself here is there's a 659 00:36:38,160 --> 00:36:41,840 Speaker 1: big question mark on that in terms of that fundamental thesis. 660 00:36:42,000 --> 00:36:47,120 Speaker 1: Does that play out for other companies with streaming services? 661 00:36:47,320 --> 00:36:51,799 Speaker 1: Thinking of Amazon Prime, Disney Plus, Apple Plus, are they 662 00:36:51,880 --> 00:36:55,399 Speaker 1: in trouble as well? I think so. I think most 663 00:36:55,440 --> 00:36:58,880 Speaker 1: of the big legacy media companies are are definitely now 664 00:36:59,000 --> 00:37:01,640 Speaker 1: have to look at this. This is a cautionary tale 665 00:37:01,719 --> 00:37:04,160 Speaker 1: for all of them. Uh Now, with the tech giants, 666 00:37:04,200 --> 00:37:05,960 Speaker 1: I think it's a little bit different. With an Amazon 667 00:37:06,080 --> 00:37:08,600 Speaker 1: Prime or with an Apple. They do have very very 668 00:37:08,680 --> 00:37:11,680 Speaker 1: deep pockets. They can go after different types of content 669 00:37:11,840 --> 00:37:14,880 Speaker 1: to attract a wider subscriber base. And while Street is 670 00:37:14,920 --> 00:37:17,160 Speaker 1: not necessarily going to punish them for being a lost 671 00:37:17,280 --> 00:37:20,279 Speaker 1: leader simply because media is not you know, their bread 672 00:37:20,360 --> 00:37:22,760 Speaker 1: and butter, it's kind of more like a side project 673 00:37:22,880 --> 00:37:25,799 Speaker 1: or a hobby for the media companies. However, this really 674 00:37:26,040 --> 00:37:28,239 Speaker 1: is where the future is. And I think what now 675 00:37:28,480 --> 00:37:29,880 Speaker 1: is going to happen is it's kind of got a 676 00:37:29,920 --> 00:37:31,880 Speaker 1: force media companies to take a look and see what 677 00:37:32,040 --> 00:37:34,279 Speaker 1: that addressable market is. So we were talking about a 678 00:37:34,480 --> 00:37:38,440 Speaker 1: billion a billion, you know, global internet households. We were 679 00:37:38,440 --> 00:37:40,759 Speaker 1: talking about the Netflix subscription numbers going from that two 680 00:37:40,840 --> 00:37:43,080 Speaker 1: hundred million level to to you know, to a four 681 00:37:43,160 --> 00:37:45,520 Speaker 1: hundred to or six hundred to an eight hundred million 682 00:37:45,960 --> 00:37:49,520 Speaker 1: level eventually by twenty But now that that's that is 683 00:37:49,560 --> 00:37:51,600 Speaker 1: what is really in question here. And so now when 684 00:37:51,640 --> 00:37:54,799 Speaker 1: Disney looks at their model, when all these other incumbents 685 00:37:54,840 --> 00:37:57,200 Speaker 1: look at their model, we'll have to see that, you know, 686 00:37:57,440 --> 00:38:00,080 Speaker 1: they'll have to examine the model more closely. And I 687 00:38:00,160 --> 00:38:03,920 Speaker 1: think now there is that ceiling on what their total 688 00:38:04,440 --> 00:38:08,160 Speaker 1: market could potentially be. Only about a minute left here, Githa. 689 00:38:08,280 --> 00:38:11,200 Speaker 1: What about content? You know, Netflix has spent a ton 690 00:38:11,520 --> 00:38:14,560 Speaker 1: on putting as many different types of shows and movies 691 00:38:14,680 --> 00:38:17,480 Speaker 1: out there. Is that going to have to change? So 692 00:38:17,680 --> 00:38:19,400 Speaker 1: I think one thing that we've got, of course, Netflix 693 00:38:19,400 --> 00:38:21,640 Speaker 1: has done a fantastic job, Nathan, in terms of you know, 694 00:38:21,719 --> 00:38:24,240 Speaker 1: originals in terms of bringing so many different pieces of content, 695 00:38:24,400 --> 00:38:27,359 Speaker 1: local content to their subscribers, but I think not all 696 00:38:27,440 --> 00:38:30,800 Speaker 1: of it is resonating. They did talk about, uh, you know, 697 00:38:31,000 --> 00:38:34,200 Speaker 1: doing more there. Yes, they're spending eighteen billion dollars, but 698 00:38:34,280 --> 00:38:36,239 Speaker 1: I think they're going to have to try and experiment 699 00:38:36,440 --> 00:38:38,680 Speaker 1: in different areas. They're they're going to have to do 700 00:38:38,800 --> 00:38:41,680 Speaker 1: more to see that, you know, content resonates and brings 701 00:38:41,719 --> 00:38:45,400 Speaker 1: in more subscriptions. Thank you, as always, Githa Ranganathan of 702 00:38:45,440 --> 00:38:50,000 Speaker 1: Bloomberg Intelligence, Senior media Analysts on the very disappointed quarter 703 00:38:50,080 --> 00:38:52,960 Speaker 1: for Netflix and again the shares now down more than 704 00:38:53,040 --> 00:38:59,000 Speaker 1: twenty six percent. Karen, I take it you expected the 705 00:38:59,080 --> 00:39:02,640 Speaker 1: court to turn this suit away because you tweeted if 706 00:39:02,719 --> 00:39:05,840 Speaker 1: this lawsuit succeeds, I will post a video of myself 707 00:39:05,960 --> 00:39:09,560 Speaker 1: eating every single page of the Internal Revenue Code, one 708 00:39:09,640 --> 00:39:14,200 Speaker 1: by one. That is true. I felt confident in making 709 00:39:14,280 --> 00:39:16,920 Speaker 1: that promise that I would not be eating a gigantic 710 00:39:17,000 --> 00:39:20,320 Speaker 1: ream of paper. Why were you so confident, Well, the 711 00:39:20,440 --> 00:39:24,400 Speaker 1: position of the States was that it was unconstitutional for 712 00:39:25,160 --> 00:39:28,719 Speaker 1: Congress to limit the state and local tax deduction, and 713 00:39:28,840 --> 00:39:32,839 Speaker 1: Congress has been limiting the deduction for quite some time now. 714 00:39:33,360 --> 00:39:37,000 Speaker 1: And there was never a constitutional question. More generally, Congress 715 00:39:37,040 --> 00:39:40,200 Speaker 1: can control the tax code and grant or removed deduction 716 00:39:40,440 --> 00:39:42,520 Speaker 1: with quite a bit of leeway. So I just thought 717 00:39:42,600 --> 00:39:45,759 Speaker 1: the position of the states was rather ridiculous. Go over 718 00:39:45,920 --> 00:39:49,160 Speaker 1: what the Second Circuit ruled about some of the arguments 719 00:39:49,239 --> 00:39:52,440 Speaker 1: that New York and the three States put forward. So 720 00:39:52,800 --> 00:39:57,840 Speaker 1: there's two aspects of the argument that of note one. Again, 721 00:39:58,000 --> 00:40:02,160 Speaker 1: the states argued that Congress was mandated to provide this deduction. 722 00:40:02,680 --> 00:40:05,480 Speaker 1: The court had little time dismissing that because they traced 723 00:40:05,560 --> 00:40:09,560 Speaker 1: the history and showed various circumstances under which Congress had 724 00:40:09,640 --> 00:40:14,040 Speaker 1: previously limited the deduction. Second, the states were arguing that 725 00:40:14,560 --> 00:40:18,200 Speaker 1: Congress was trying to come and deer the states. That is, 726 00:40:18,600 --> 00:40:21,680 Speaker 1: they were saying that the federal government was forcing them 727 00:40:21,960 --> 00:40:25,400 Speaker 1: to change their tax systems. Usually in the law we 728 00:40:25,520 --> 00:40:28,800 Speaker 1: look askance if Congress tries to force a state to 729 00:40:28,840 --> 00:40:31,600 Speaker 1: do something. But the court dismissed that argument as well, 730 00:40:31,640 --> 00:40:33,920 Speaker 1: saying that you can still have an income tax if 731 00:40:33,960 --> 00:40:36,120 Speaker 1: you want, you can still have property taxes if you want, 732 00:40:36,440 --> 00:40:39,120 Speaker 1: just at the federal level the deductions might be limited. 733 00:40:39,280 --> 00:40:41,720 Speaker 1: The federal government is not forcing you to do anything, 734 00:40:42,239 --> 00:40:44,680 Speaker 1: and would you say that the best chance the States 735 00:40:44,719 --> 00:40:47,480 Speaker 1: had was at the Second Circuit, where the States has 736 00:40:47,560 --> 00:40:50,160 Speaker 1: sort of had a home court advantage. I don't think 737 00:40:50,200 --> 00:40:52,440 Speaker 1: they had a chance in the Second Circuit or on 738 00:40:52,520 --> 00:40:56,040 Speaker 1: Mars Uh, this wasn't in. It doesn't matter right. The 739 00:40:56,040 --> 00:40:59,960 Speaker 1: Trump administration opposed, Biden administration opposed that. I don't say 740 00:41:00,400 --> 00:41:04,360 Speaker 1: any judge would faithfully accept the argument. So why do 741 00:41:04,400 --> 00:41:06,800 Speaker 1: you think they continued to sue and try to appeal 742 00:41:06,840 --> 00:41:10,760 Speaker 1: it to the Supreme Court. Well, historically the salt deduction 743 00:41:10,840 --> 00:41:13,759 Speaker 1: has been understood as something that benefits the rich over 744 00:41:13,800 --> 00:41:16,960 Speaker 1: the port. But in connection with the Act, which was 745 00:41:17,239 --> 00:41:22,000 Speaker 1: highly politicized, you did have some Republican legislators describing the 746 00:41:22,080 --> 00:41:25,240 Speaker 1: salt cap as a way to hurt Blue state. Given 747 00:41:25,320 --> 00:41:28,759 Speaker 1: that political posture, I think perhaps they believed they could 748 00:41:28,760 --> 00:41:31,960 Speaker 1: score some political points through this lawsuit. I don't think 749 00:41:32,040 --> 00:41:37,359 Speaker 1: they expected to win. Andy gray wall, a professor at 750 00:41:37,440 --> 00:41:40,520 Speaker 1: the University of Iowa College of Law, speaking with the Bloomberg, 751 00:41:40,560 --> 00:41:43,920 Speaker 1: Shore and Grasso. Catch more of that interview, plus analysis 752 00:41:43,960 --> 00:41:46,200 Speaker 1: of the latest legal news, by listening to The Bloomberg 753 00:41:46,280 --> 00:41:49,239 Speaker 1: Law Show at ten pm Eastern Time, or subscribing to 754 00:41:49,280 --> 00:41:52,759 Speaker 1: the Bloomberg Law podcast, and attorneys can find exceptional legal 755 00:41:52,840 --> 00:41:56,160 Speaker 1: research and business development tools at Bloomberg law dot com. 756 00:41:56,840 --> 00:42:00,680 Speaker 1: Right now, futures are little change that Jackson, Germany is 757 00:42:00,760 --> 00:42:03,400 Speaker 1: higher up one point one percent, cag in Paris at 758 00:42:03,440 --> 00:42:05,480 Speaker 1: one point four percent, and the foot Sea one hundred 759 00:42:05,920 --> 00:42:08,560 Speaker 1: is up half percent. The Tenuere treasury up eleven thirty 760 00:42:08,600 --> 00:42:11,480 Speaker 1: seconds yield two point eight nine percent, and the yield 761 00:42:11,600 --> 00:42:14,840 Speaker 1: on the two year is at two point five six percent. 762 00:42:15,280 --> 00:42:17,399 Speaker 1: Nim Max screwed oils at three quarters of a percent 763 00:42:17,560 --> 00:42:19,439 Speaker 1: or seventy eight cents and a hundred three dollars. Thirty 764 00:42:19,480 --> 00:42:22,640 Speaker 1: four cents of barrel comes. Gold is down half percent 765 00:42:22,800 --> 00:42:25,719 Speaker 1: or nine dollars at one thousand, nine hundred fifty dollars announced. 766 00:42:26,080 --> 00:42:29,160 Speaker 1: The euro one eight five seven against the dollar British 767 00:42:29,200 --> 00:42:31,799 Speaker 1: found one point three zero three three and the end 768 00:42:31,880 --> 00:42:35,719 Speaker 1: this morning one twenty eight point oh six Bitcoin at 769 00:42:35,800 --> 00:42:39,520 Speaker 1: forty one thousand, five hundred and sixty dollars still ahead. 770 00:42:39,520 --> 00:42:42,360 Speaker 1: On Bloomberg Daybreak, I check on the business headlines and 771 00:42:42,440 --> 00:42:45,040 Speaker 1: all the news you need to start your day, and 772 00:42:45,320 --> 00:42:46,480 Speaker 1: this is Bloomberg