WEBVTT - Bloomberg Daybreak: January 26, 2023

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<v Speaker 1>Live from the Bloomberg interactave Berger Studios. This is Bloomberg

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<v Speaker 1>day Break for Thursday January. Coming up this hour, Tesla

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<v Speaker 1>shares rally after earnings top estimates. Chevron announces a big

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<v Speaker 1>stock buyback following record profits. We get a key reading

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<v Speaker 1>on fourth quarter economic growth. And Donald Trump is back

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<v Speaker 1>on Facebook. There's a legal tussle over Madison Square gardens

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<v Speaker 1>use of facial recognition technology, plus Russian missiles strike the

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<v Speaker 1>capitol of Ukraine. I'm Michael Blader. More ahead, I'm John

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<v Speaker 1>stash Our sports the Nets, Rangers, Islanders and St John's

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<v Speaker 1>all lost. They're playing the women's semifinals at the Australian Open.

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<v Speaker 1>That's All's Tradyhead on Bloomberg day Break on Bloomberg eleven three,

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<v Speaker 1>on New York, Bloomberg one, Washington, d C, Bloomberg one

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<v Speaker 1>oh six one Boston, Bloomberg nine sixties and Francisco Sirius

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<v Speaker 1>x M one nine team and around the world on

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<v Speaker 1>Bloomberg Radio dot Com and via The Bloomberg Business. Good morning.

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<v Speaker 1>I'm Nathan Hagar, and I'm kerin Moscow. Here are the

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<v Speaker 1>stories we're following today. The lift in nastac futures this

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<v Speaker 1>morning follows an earnings beat from Tesla. Those shares are

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<v Speaker 1>up nearly seven percent in early trading. Let's get the

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<v Speaker 1>latest live with Bloomberg. Steve Rappaford, Good morning, Stu, Good morning,

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<v Speaker 1>Nathan and Karen. Better numbers and a better forecast are

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<v Speaker 1>driving Testlas stock in pre market trading after the electric

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<v Speaker 1>automaker top fourth quarter expectations and said it's on track

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<v Speaker 1>to deliver about one point eight million vehicles this year,

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<v Speaker 1>representing a production boost of about thirty eight percent. If

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<v Speaker 1>the pre market gains, hold shares will rise more than

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<v Speaker 1>fifty percent from a January sixth low. As of yesterday's closed,

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<v Speaker 1>the stock is down six from its all time high.

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<v Speaker 1>Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve,

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<v Speaker 1>thank you well. IBM is also out with earnings and

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<v Speaker 1>job cuts. Fourth quarter revenue was unchanged at sixteen point

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<v Speaker 1>seven billion dollars. IBM also said it will eliminate about

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<v Speaker 1>one and a half percent of its global workforce. That's

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<v Speaker 1>about thirty d jobs. We're also watching shares of Chevron

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<v Speaker 1>this morning, care and they're up two and a half

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<v Speaker 1>percent in early trading. The oil giant plans to buy

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<v Speaker 1>back seventy five billion dollars in shares after reaping record

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<v Speaker 1>profits last year. Bloomberg's Charlie Pellett has the story. The

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<v Speaker 1>stock repurchase program will kick in April one and will

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<v Speaker 1>be triple the size of the previous authorization unveiled in

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<v Speaker 1>early twenty nine. Chevron also will pay investors a dollar

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<v Speaker 1>fifty one to share dividend on March tenth. Big oil

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<v Speaker 1>rep record profits last year after Russia's invasion of Ukraine,

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<v Speaker 1>as oil, natural gas, and crude refining margins surged and

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<v Speaker 1>Western governments sought to isolate the Vladimir Putin regime. Chevron

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<v Speaker 1>reports fourth quarter results tomorrow in New York. Charlie Pellett

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<v Speaker 1>Bloomberg Daybreak, Great, Charlie, thank you well. Ernie's continued to

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<v Speaker 1>roll in, with more than two dozen companies in the

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<v Speaker 1>S and P five reporting today. Intel is one of

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<v Speaker 1>the bigger names on the list, and we get a

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<v Speaker 1>preview from Bloomberg's Jeff Bellinger. Analysts are not bullish about Intel,

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<v Speaker 1>given the weakness in demand from the personal computer and

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<v Speaker 1>data center markets and the fact that the company cut

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<v Speaker 1>its annual forecast twice in the second half of two

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<v Speaker 1>Bloomberg Intelligence, As the chip maker may report sequential declines

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<v Speaker 1>in both its client and data center segments. Investors may

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<v Speaker 1>pay more attention to Intel's twenty three guidance than the

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<v Speaker 1>numbers from the holiday quarter. They'll want to know, among

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<v Speaker 1>other things, whether cash flow will be strong enough to

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<v Speaker 1>maintain the quarterly dividend. Jeff Bellinger, Bloomberg Daybreak, Thanks Jeff.

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<v Speaker 1>Turning to the economy, now we get important data from

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<v Speaker 1>the US today. The government issues fourth quarter GDP, and

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<v Speaker 1>economists anticipate a respectable showing. Bloomberg's Any Dell Judais reports

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<v Speaker 1>the economist for forecasting the US economy expanded at two

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<v Speaker 1>point six percent pace in the closing months of last year,

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<v Speaker 1>boosted by household spending on services. Bloomberg Economics is any

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<v Speaker 1>Americans are benefiting from wage games and money stashed away

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<v Speaker 1>during the pandemic. Looking ahead, economist survey by Bloomberg anticipate

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<v Speaker 1>US economic growth will drop by point six percent this

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<v Speaker 1>quarter and by point three percent next quarter. Also on

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<v Speaker 1>today's US data Agenda, forecast call for decent numbers on

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<v Speaker 1>jobless claims and durable goods orders. But I drop in

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<v Speaker 1>new home sales. Finny Deal Judae Spoomberg day Break, Great, Pinny,

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<v Speaker 1>thank you. Well, as we await that reading on economic

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<v Speaker 1>growth forecast for a recession, remain front end center strategist

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<v Speaker 1>like bank you chat at Deutsche Bank are still predicting

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<v Speaker 1>a contraction. Very important aspect of the recession playbook. To

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<v Speaker 1>keep in mind if you're thinking about twelve months, is

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<v Speaker 1>that equity is you know, pretty robustly bottom about halfway through.

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<v Speaker 1>So if you have a two quarter recession, they will

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<v Speaker 1>come all the way back basically in Q four. And

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<v Speaker 1>so my Q on target is my year end target,

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<v Speaker 1>and that year on target from Deutsche Bank chief global

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<v Speaker 1>strategist bank E Schota is forty five hundred for the

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<v Speaker 1>SNP five. Well, Karen, we have new developments this morning

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<v Speaker 1>involving that computer glitch at the New York Stock Exchange.

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<v Speaker 1>Bloomberg News has learned the problem has been traced to

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<v Speaker 1>an employee who left a backup system running. That mistake

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<v Speaker 1>triggered wild market swings involving more than two fifty companies.

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<v Speaker 1>Thousands of trades were canceled, and the cost of the

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<v Speaker 1>issue has yet to be determined. Well now to the

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<v Speaker 1>intersection of technology and politics. Nathan, there's word that Meta

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<v Speaker 1>Platforms is going to end the suspension of former President

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<v Speaker 1>Donald Trump at Baxter has the story from our Bloomberg

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<v Speaker 1>nine Sis room in San Francisco. This ends two years

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<v Speaker 1>of being banned. Meta says from the beginning it was

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<v Speaker 1>for an undetermined amount of time, and that the public

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<v Speaker 1>should be able to hear what their politicians are saying,

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<v Speaker 1>the good, the bad, and the ugly, so they can

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<v Speaker 1>make informed choices at the ballot box. At the same time, now,

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<v Speaker 1>Meta says it has changed oversight rules that can cause

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<v Speaker 1>another suspension of violated with more severe penalties. Meta says

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<v Speaker 1>it will restore the accounts in the coming weeks. In

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<v Speaker 1>San Francisco, I'm at Baxter Bloomberg Daybreak. All right, thank you.

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<v Speaker 1>Turning overseas, we have a change at the top at Toyota,

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<v Speaker 1>the Japanese automakers promoting Lexus president Koji Sato to CEO.

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<v Speaker 1>Sato's job will be to guide the company through the

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<v Speaker 1>challenges of electrification and automation, and the hottest job in

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<v Speaker 1>the market right now, Nathan might not just be truck

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<v Speaker 1>drivers and nurses. Overseas, the biggest need for many companies

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<v Speaker 1>is for chief financial officers. According to the executive search

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<v Speaker 1>firm Spencer Steward, openings for CFOs are up nearly a

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<v Speaker 1>third compared to last year. Companies are asking for more

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<v Speaker 1>from their finance directors, with inflation and higher interest rates

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<v Speaker 1>signaling the end of easy money. Straight ahead, we have

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<v Speaker 1>your latest local headlines and this is Bloomberg. Thank you, Karen.

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<v Speaker 1>It is forty nine degrees in Central Park. We'll have

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<v Speaker 1>sunny breaks this afternoon. It's gonna be breezy and brisk,

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<v Speaker 1>partly cloudy tonight, heading down to the thirties. Time now

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<v Speaker 1>to take a look at some of the other stories

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<v Speaker 1>making news in New York and around the world with

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<v Speaker 1>Bloomberg S. Michael Bark, Good morning, Ancael, Good morning Nathan.

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<v Speaker 1>Ukraine faces what appears to be the eleventh major barrage

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<v Speaker 1>of Russian missile strikes since early October, aimed at energy,

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<v Speaker 1>infrastructure and other civilian targets. Explosions were heard in Kiev,

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<v Speaker 1>with at least one person reported killed in the capitol.

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<v Speaker 1>Strikes were also reported in Odessa and other regions. It

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<v Speaker 1>comes after President Biden announced yesterday and the US will

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<v Speaker 1>be sending more than thirty of its best tanks, the

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<v Speaker 1>M one A two Abrahms, to Ukraine. There's no offensive

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<v Speaker 1>threat to Russia and Prussia troops returned to Russia. They'll

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<v Speaker 1>be there wherever they belong. This war would be over today.

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<v Speaker 1>Germany also said yesterday it would send its Leopard two

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<v Speaker 1>tanks to Kiev. New York Mayor Eric Adams would deliver

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<v Speaker 1>his State of the City addressed today. Adams is expected

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<v Speaker 1>to talk about several issues, including the homeless situation and crime.

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<v Speaker 1>He will also discuss the economic situation of the city.

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<v Speaker 1>Adams will give his speech in Queen's at noon. New

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<v Speaker 1>York State Attorney General Letitia James is raising concerns about

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<v Speaker 1>Madison Square Garden using facial recognition technology to keep out

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<v Speaker 1>people who work for anybody suing the company. James also

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<v Speaker 1>questions whether the facial recognition software that MSG uses to

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<v Speaker 1>identify individuals is reliable, citing research that suggests the technology

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<v Speaker 1>may be biased against people of color and women. MSG

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<v Speaker 1>defends the band and opposes a bill introduced by New

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<v Speaker 1>York state lawmakers to prohibit sports venues some refusing entry

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<v Speaker 1>to perceive enemies of their owners. Investigators in Monterey Park, California,

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<v Speaker 1>are still trying to find a motive for Saturday's shooting

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<v Speaker 1>in a ball room that left eleven people dead. According

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<v Speaker 1>to Los Angeles County Sheriff Robert Luna, the suspected gunman

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<v Speaker 1>seventy two year old who Contron was not married, and

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<v Speaker 1>they have found no signs he was romantically connected to

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<v Speaker 1>any of the victims. Based on the interviews the investigators

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<v Speaker 1>are still conducting, uh, they have not been able to

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<v Speaker 1>establish a connection between the suspect and any of the

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<v Speaker 1>victims thus far, Sheriff Luna says Tron later killed himself

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<v Speaker 1>after the mass shooting. Global News twenty four hours a

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<v Speaker 1>day on a or and on Bloomberg Quick Tank, powered

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<v Speaker 1>by more than twenty seven hundred journalists analysts more than

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<v Speaker 1>a hundred twenty countries. I'm Michael Barren. This is Bloomberg, Nathan.

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<v Speaker 1>Thanks Michael. It's time for a Bloomberg Sports update, brought

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<v Speaker 1>to you by Trice stayed out here with John stash Our.

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<v Speaker 1>Thanks Nathan, Nets and sixers. About a year after they

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<v Speaker 1>swung that big James Harden for Ben Simmons trade, hardened

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<v Speaker 1>some Herobic standard stretcher in Philadelphia Want a high scoring

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<v Speaker 1>affair one thirty seven, one thirty three. This game was

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<v Speaker 1>tied at forty one after the first quarter. Seth Curry

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<v Speaker 1>was also in that trade. Day led Brooklyn with thirty

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<v Speaker 1>two points. The Nets for two and five without Kevin

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<v Speaker 1>Durant Neicks. Tonight visit the league leading Celtics Rangers in

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<v Speaker 1>Toronto had a lead with five minutes left, but the

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<v Speaker 1>game went to overtime. Who's decided earlier comes on and

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<v Speaker 1>comes in front of that star, dresses to Rangers, cuts

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<v Speaker 1>across the gold Cres head up wait Sister come to

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<v Speaker 1>win the game eighteen seconds into overtime and three two

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<v Speaker 1>leaves Philippino both the Ranger Girls. Islanders struggling to score

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<v Speaker 1>just eighteen goals in their last eleven games, and ten

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<v Speaker 1>of those were losses. They fell to one at Ottawa. St.

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<v Speaker 1>John's went to omahaal at crateon score fifty two points

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<v Speaker 1>in both halves. Red Storm got trounced one oh four

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<v Speaker 1>seventy six four to one at St. Bonaventure. The Rams

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<v Speaker 1>are sixteen and four. The Giant Brian Brian Dable named

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<v Speaker 1>a finalist to win Coach of the Year. Set Juan

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<v Speaker 1>Barkley of finalists for the Comeback Player, and two Jets

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<v Speaker 1>could win the Rookie Awards. Garrett Wilson on offense, Sauce

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<v Speaker 1>Gardner on defense, Women's semifinals at the Australian Open, and

0:10:54.160 --> 0:10:57.640
<v Speaker 1>Elena Arrivaquina has won the first set from Victoria Azararenka.

0:10:57.960 --> 0:11:01.040
<v Speaker 1>They'll be followed by Arena Sablanca versus Is magdal Lenette,

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<v Speaker 1>who was unstated. She's already beaten five senior players. John

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<v Speaker 1>stash Allen Bloomberg Sports live from coast to coast, from

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<v Speaker 1>New York to San Francisco, Boston to Washington, d C.

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<v Speaker 1>Nationwide on Sirius XAMP, the Bloomberg Business app, and Bloomberg

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<v Speaker 1>dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar.

0:11:23.559 --> 0:11:26.240
<v Speaker 1>As we continue to watch shares of Tesla this morning.

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<v Speaker 1>They're up more than seven percent after profits came in

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<v Speaker 1>better than expected in the latest quarter for the electric

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<v Speaker 1>vehicle maker. But Elon Musk's company is sending some mixed

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<v Speaker 1>signals about future delivery. So let's get into these numbers now.

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<v Speaker 1>We're joined by Bloomberg News Automotive editor Stefan Nicholas Stefan

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<v Speaker 1>good morning, Thanks so much for being with us. UH.

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<v Speaker 1>The company says it is on track to deliver about

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<v Speaker 1>one point eight million vehicles this year, but it's talking

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<v Speaker 1>about getting back to its long term target as soon

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<v Speaker 1>as possible. That's like fifty percent is the number they

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<v Speaker 1>keep talking about for annual growth over multiple years. One

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<v Speaker 1>point eight million v equals isn't quite there, right, Yeah,

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<v Speaker 1>that's correct, Good morning, that's correct. One point eight million

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<v Speaker 1>cars isn't quite there. Um, it's just over thirty percent.

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<v Speaker 1>And that's still though a decent increases, especially given the

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<v Speaker 1>UH concerns about demand. Late last year, um Tesla lowered

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<v Speaker 1>prices for its cause in several of its markets and

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<v Speaker 1>and that will will help demand. Also, Elon Musk said

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<v Speaker 1>during the call that in January demand was at twice

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<v Speaker 1>the rate of production, so that that's some some good

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<v Speaker 1>news for demand. UM. But yeah, the target is still

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<v Speaker 1>a bit elusive. Well, how realistic, Stefan, is that production

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<v Speaker 1>or that demand expectation for Elon Musk, given that over

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<v Speaker 1>the last few months he's been talking about the idea

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<v Speaker 1>that recession is pretty much inevitable. Yeah, so and he mentioned,

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<v Speaker 1>you know, some of those concerns during the call as

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<v Speaker 1>well high interest rates, a potential recession um and relation

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<v Speaker 1>in parts of the world. Um. He also said that

0:13:05.040 --> 0:13:08.719
<v Speaker 1>you know, technically they could deliver two million cars. That's

0:13:08.760 --> 0:13:12.199
<v Speaker 1>not their their goal, but it's it's a technical possibility.

0:13:12.240 --> 0:13:14.640
<v Speaker 1>I think a lot of things will have to happen. Um.

0:13:15.080 --> 0:13:17.240
<v Speaker 1>You know, production will have to be ramped up at

0:13:17.280 --> 0:13:21.000
<v Speaker 1>several of Tesla's key factories across the world. Um, we

0:13:22.520 --> 0:13:28.600
<v Speaker 1>can't see another components shortage crisis like the semiconductor crunch

0:13:28.720 --> 0:13:31.640
<v Speaker 1>that we saw last year. And you know, it also

0:13:31.920 --> 0:13:36.160
<v Speaker 1>depends a bit on how Tesla's brand will develop this year,

0:13:36.280 --> 0:13:41.080
<v Speaker 1>especially given Elon Musk's um mixed track records, especially when

0:13:41.120 --> 0:13:43.480
<v Speaker 1>it comes to buying Twitter and his handling off the

0:13:43.520 --> 0:13:46.360
<v Speaker 1>social media company. Yeah, certainly that does seem to be

0:13:46.679 --> 0:13:49.280
<v Speaker 1>a pretty significant headwind for a lot of investors. With

0:13:49.400 --> 0:13:53.520
<v Speaker 1>the focus on Twitter right now, What is the expectation

0:13:53.679 --> 0:13:57.520
<v Speaker 1>that Elon Musk will be able to sort of triangulate

0:13:57.880 --> 0:14:03.640
<v Speaker 1>his attention with Test and Twitter. So, I mean, Ellen

0:14:03.960 --> 0:14:07.600
<v Speaker 1>is you know, known for not needing a lot of sleep. However,

0:14:08.120 --> 0:14:11.360
<v Speaker 1>the past months, you know, he has he has seemed

0:14:11.360 --> 0:14:15.719
<v Speaker 1>a bit distracted and uh, um, while he on the

0:14:15.880 --> 0:14:19.240
<v Speaker 1>call was quite bullish about Twitter, saying that you know,

0:14:19.360 --> 0:14:22.160
<v Speaker 1>it's a great it's a great platform for the for

0:14:22.320 --> 0:14:26.280
<v Speaker 1>his brand, and and you know he touted his twenties

0:14:26.360 --> 0:14:30.160
<v Speaker 1>something follow million followers on Twitter. Um, you know, there

0:14:30.280 --> 0:14:32.440
<v Speaker 1>there still is concerned that too much of his time

0:14:32.800 --> 0:14:35.640
<v Speaker 1>goes into fixing the platform. And two little time is

0:14:36.240 --> 0:14:42.200
<v Speaker 1>is being invested in overhauling Tesla's product lineup, which is

0:14:42.400 --> 0:14:46.320
<v Speaker 1>lacking in some respects. Um, the cybertruck is going to

0:14:46.400 --> 0:14:49.840
<v Speaker 1>start production this year, but volume production won't won't happen

0:14:49.960 --> 0:14:53.760
<v Speaker 1>until four Let's see what the semi big rig does

0:14:53.920 --> 0:14:56.400
<v Speaker 1>this year. So lots of question marks on the Tesla

0:14:56.480 --> 0:14:59.560
<v Speaker 1>site that he needs to get around to fixing. Now

0:14:59.640 --> 0:15:02.080
<v Speaker 1>I means, did you mentioned cybertruck, stefan, I mean, this

0:15:02.280 --> 0:15:05.160
<v Speaker 1>is a product that Elon Musk has promised year after

0:15:05.320 --> 0:15:08.240
<v Speaker 1>year after year, and the target to introduce it keeps

0:15:08.280 --> 0:15:10.520
<v Speaker 1>getting pushed back. I mean, what's the likelihood that the

0:15:10.600 --> 0:15:15.720
<v Speaker 1>cybertruck actually does get delivered next year? So? Um? Hell

0:15:16.000 --> 0:15:19.040
<v Speaker 1>so he did say that, you know, the the cyber

0:15:19.080 --> 0:15:25.880
<v Speaker 1>truck will start production sometimes this summer. Um, that that's

0:15:25.920 --> 0:15:29.920
<v Speaker 1>obviously produced in Austin. Um, but that that's you know,

0:15:30.040 --> 0:15:33.240
<v Speaker 1>it's not clear how many units that factor will make

0:15:33.320 --> 0:15:38.560
<v Speaker 1>this year, but volume production won't happen until four UM.

0:15:38.840 --> 0:15:41.520
<v Speaker 1>I would suspect that's more to it the later later

0:15:41.720 --> 0:15:45.240
<v Speaker 1>half of that of that year. UM. On the semi

0:15:45.840 --> 0:15:48.960
<v Speaker 1>you know, Tesla plans to invest in a Nevada facility

0:15:49.040 --> 0:15:52.640
<v Speaker 1>to scale up production. But yeah, you you've rightly mentioned

0:15:52.680 --> 0:15:55.200
<v Speaker 1>the cybertruck a sort of the big thing next thing.

0:15:55.680 --> 0:15:58.640
<v Speaker 1>You know, some people are very excited about that model

0:15:59.280 --> 0:16:01.120
<v Speaker 1>at the same time, and Tesla is on the pressure

0:16:01.200 --> 0:16:03.560
<v Speaker 1>to deliver on the ind of in the pickup market.

0:16:03.640 --> 0:16:09.120
<v Speaker 1>Forts F one, fifty Lightning and the Ribbian models as

0:16:09.160 --> 0:16:11.680
<v Speaker 1>well as the GM Silverado that's coming later this year,

0:16:11.840 --> 0:16:15.320
<v Speaker 1>have some somewhat of a hit start. So yeah, it's

0:16:15.440 --> 0:16:18.240
<v Speaker 1>under pressure to to get you a big part of

0:16:18.320 --> 0:16:23.600
<v Speaker 1>that very lucrative pickup market. This is Bloomberg Daybreak Today,

0:16:23.800 --> 0:16:26.520
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0:16:26.560 --> 0:16:29.600
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