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Speaker 1: From the Bloomberg Interacted Burker's Studios. This is Bloomberg day

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Speaker 1: Break for Monday, April third. Coming up today, oil surges

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Speaker 1: as Opec announces a surprise production cut. UBS reportedly may

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Speaker 1: cut thirty percent of its workforce after the takeover of

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Speaker 1: Credit Suite, we may be nearing a deal for the

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Speaker 1: purchase of World Wrestling Entertainment. And Donald Trump's lawyer says

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Speaker 1: he'll lead not guilty in Manhattan tomorrow. The National Weather

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Speaker 1: Service confirms four tornado's touchdown in New Jersey. Plus the

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Speaker 1: US has a pointed message to Russia about a detained

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Speaker 1: American reporter. I'm Michael barn Or Ahead, I'm John Stashayward

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Speaker 1: wins for the Mets, Yankees, Knicks, Nets, and Rangers. The

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Speaker 1: National Championship Game will be played tonight. That's all straight

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Speaker 1: Ahead on Bloomberg day Break, The business news you need

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Speaker 1: disturn your day, and just one fifteen minute podcast each

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Speaker 1: pointing on Apple's Spotify, the Bloomberg Business App, and everywhere

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Speaker 1: you get your podcasts. Good morning, I'm Nathan Hagar and

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Speaker 1: I'm Karon Moscow. Here are the stories we're following today. Karen.

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Speaker 1: We begin this morning with a jump in oil prices.

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Speaker 1: Right now, West Texas Intermediate CREWD is up five and

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Speaker 1: a half percent to seventy nine dollars eighty four cents

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Speaker 1: of barrel. That's after OPEC Plus announced a surprise production

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Speaker 1: cut of more than one million barrels a day. The

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Speaker 1: move flies in the face of previous assurances that it

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Speaker 1: would hold supply steady. We get more from Bloomberg's Christine

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Speaker 1: Burke in riod. So we're coming off of a pretty

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Speaker 1: soft quarter for oil prices. Brent was down about seven

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Speaker 1: percent in the first quarters. We have seen some weakness

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Speaker 1: and that is I think very much why we're seeing

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Speaker 1: OPEC Plus take this decision to cut production is they

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Speaker 1: have seen that that prices have come down so much.

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Speaker 1: We're dealing with a lot of macro and certainty. You've

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Speaker 1: got a lot of uncertainty around the Fed, a lot

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Speaker 1: of questions about what's going to happen with the banking crisis,

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Speaker 1: and so OPEC really stepping in here to try and

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Speaker 1: signal to the market that it wants those higher prices.

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Speaker 1: Man Bloomberg's Christine Burke says the White House is responding,

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Speaker 1: calling opex production cut quote ill advised and we're seeing

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Speaker 1: oil stocks rally on the OPEC News Nathan shares of

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Speaker 1: Chevron and Exxon Mobile or at more than three percent

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Speaker 1: in early trading. Haliburton, Marathon Oil, and Schlumberge are all

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Speaker 1: lot more than four percent. And another major story this morning,

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Speaker 1: Karen centers on massive job cuts at UBS. A Swiss

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Speaker 1: newspaper is reporting UBS will cut its workforce by up

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Speaker 1: to thirty percent after completing the takeover of Credit Suis.

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Speaker 1: We get more from Bloomberg's Russell Ward. These are pretty

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Speaker 1: dramatic numbers, as many as eleven thousand staff domestically twenty

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Speaker 1: five thousand abroad according to the report. That's much more

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Speaker 1: than the nine thousand that Sweets was cutting before the takeover.

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Speaker 1: But as you say, large scale job cuts do appear

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Speaker 1: to be inevitable given the huge overlaps at these two banks. Domestically,

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Speaker 1: both banks have branches and main street main streets all

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Speaker 1: over the country. You know some of these which just

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Speaker 1: simply have to close. And globally UBS has pledged to

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Speaker 1: downsize Credit Swiss investment banking. This is to fit into

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Speaker 1: its conservative cultures, so you can expect cuts abroad to

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Speaker 1: center on that area and in another development, Bloomberg's Russell

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Speaker 1: Award says Swiss prosecutors are opening an investigation into possible

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Speaker 1: crimes linked to the takeover of Credit Suites. And Nathan,

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Speaker 1: We've seen a recent rally in tech stocks, but one

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Speaker 1: strategist says this surge is overdone. Mike Wilson is CHPUS

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Speaker 1: equity strategist at Morgan Stanley and one of the most

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Speaker 1: prominent bears on stocks. He warns the tech rally that

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Speaker 1: succeeded twenty percent is not sustainable and that the sector

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Speaker 1: will eventually hit new lows. Let's zoom out from the

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Speaker 1: markets now. Karen and turned to politics for the latest

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Speaker 1: developments on the indictment of former President Donald Trump. For that,

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Speaker 1: we're joined live by Bloomberg's John Tucker in New York.

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Speaker 1: Good morning, John, and Nathan. Trump is expanded to travel

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Speaker 1: to New York today and stay overnight at his home

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Speaker 1: on Fifth Avenue before his arrangement tomorrow in criminal court.

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Speaker 1: He'll be fingerprinted and have a mug shot taken. Trump's attorney,

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Speaker 1: Joe Tekapina, was on ABC's This Week, says Trump will

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Speaker 1: plead not guilty and called the case a political persecution.

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Speaker 1: Had Donald Trump not being Donald Trump and it was

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Speaker 1: John Smith. This case now would have been brought if

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Speaker 1: he was not running for reelection. There's no way this

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Speaker 1: case would have brought. The exact charges haven't been revealed,

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Speaker 1: but they are related to hushmoney payments to poor An

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Speaker 1: actress Stormy Daniels. Trump isn't making any friends with a

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Speaker 1: judge who will be presiding over the case is already

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Speaker 1: bashed him on social media. Key streets and Lower Manhattan

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Speaker 1: will be closed in anticipation of any demonstrations and ours

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Speaker 1: anti the Raymond. Trump is expected to return to Florida

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Speaker 1: and deliver an evening address from Mara Lago Live in

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Speaker 1: New York. I'm John Tucker Bloomberg Daybreak. All right, John,

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Speaker 1: thank you. When it comes to the race for the

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Speaker 1: White House, former President Trump has another challenger. Former Arkansas

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Speaker 1: Governor Aesa Hutchinson is entering the race for the Republican nomination.

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Speaker 1: As I've traveled a country for six months, I hear

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Speaker 1: people talk about the leadership of our country, and I'm

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Speaker 1: convinced that people want leaders that appeal to the best

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Speaker 1: of America and not simply appeal to our worst instincts.

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Speaker 1: And former Arkansas Governor Aesa Hutchinson says he'll make a

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Speaker 1: formal announcement on his presidential run later this month. He

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Speaker 1: made the comments on ABC's This Week or Sundays on

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Speaker 1: Bloomberg Radio. Let's turn to corporate news now, Karen. Word

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Speaker 1: of a possible deal this morning involving World Wrestling Entertainment

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Speaker 1: could have a new owner soon. Let's get the latest

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Speaker 1: on that, Live with Bloomberg. Steve Rappaford, Good morning, Stave,

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Speaker 1: Good morning, Nathan, and Karen. Sources tell us in Debora

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Speaker 1: Group Holdings will announce a deal this week to buy

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Speaker 1: WWE for about nine billion dollars, though it's possible talks

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Speaker 1: could still fall through. Founder and majority shareholder Vince McMahon

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Speaker 1: is expected to remain involved in the business after the deal.

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Speaker 1: McMahon left WWE last year after revelations that he paid

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Speaker 1: millions of dollars to settle claims of sexual misconduct. The

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Speaker 1: seventy seven year old reinstated himself as chairman in January

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Speaker 1: to oversee a strategic review of the company. Live in

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Speaker 1: New York, I'm Steve Rappaport Bloomberg Daybreak. All right, Steve,

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Speaker 1: thank you all. Tesla's shares are hitting the brakes this morning.

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Speaker 1: They're down two point one percent in early trading. Sled

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Speaker 1: did report record deliveries in the first quarter, but they

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Speaker 1: fell short of the pace required to meet Elon muskol

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Speaker 1: a fifty percent annual growth. Tesla delivered almost four hundred

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Speaker 1: and twenty three thousand cars worldwide last quarter. After it

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Speaker 1: cut prices and Karen of bankruptcy filing maybe looming for bed,

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Speaker 1: Bath and Beyond, the home goods retailer has three weeks

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Speaker 1: to raise another three hundred million dollars from equity markets

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Speaker 1: that have largely turned against the company. The shares plunged

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Speaker 1: fifty percent after it raised three hundred and sixty million

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Speaker 1: from a hedge fund. That deal diluted existing shareholders. Straight ahead,

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Speaker 1: we'll get your latest local headlines into check of sports.

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Speaker 1: This is Bloomberg. It's thirty nine degrees in New York.

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Speaker 1: We have a frost advisor this morning in the suburbs,

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Speaker 1: but will be mostly sunny, sixty degrees by this afternoon,

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Speaker 1: mostly cloudy tonight, headed down to around fifty. Let's take

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Speaker 1: a look at some of the other stories making news

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Speaker 1: in New York and around the world. With Bloomberg's Michael

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Speaker 1: bar Good morning, Michael, Good morning, Nathan. The National Weather

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Speaker 1: Service confirmed that ford tornado it's touched down over the weekend.

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Speaker 1: In New Jerry. One twister hit Jackson Township. This woman

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Speaker 1: and her fiance got an alert on their cell phones

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Speaker 1: and took cover. Lights started flickering and then eventually went off,

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Speaker 1: and we grabbed flashlights and went to the basement as

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Speaker 1: fast as we could. Jackson Township residents woke up to

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Speaker 1: find downed power lines and trees brought to the ground.

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Speaker 1: Weekend tornadoes killed more than two dozen people in several states,

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Speaker 1: including five fatalities in Arkansas. Tornadoes were reported spanning from

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Speaker 1: Alabama to as far north as Delaware. Arkansas Governor Sarah

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Speaker 1: Huckaby Sanders says they're preparing for more severe weather that

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Speaker 1: is forecast for the region tomorrow. Huckaby Sanders spoke in

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Speaker 1: wind which took a direct tornado hit. What I found

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Speaker 1: to be so amazing are the people who are stepping up,

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Speaker 1: not just from this community but across all of Arkansas,

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Speaker 1: coming together and helping build their neighbors up. Almost four

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Speaker 1: hundred thousand people are without power across a dozen states,

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Speaker 1: Senator John Feederman is talking about his inpatient treatment for

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Speaker 1: clinical depression. He spends six weeks in Washington d ses

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Speaker 1: Walter Read Medical Center. The Pennsylvania Democrat was released on

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Speaker 1: Friday and returned to his home. His office said his

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Speaker 1: depression is in remission. During an interview with CBS Sunday morning,

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Speaker 1: he recalled feeling low the ninety one the election to

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Speaker 1: the Senate. It's like you just won the biggest race

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Speaker 1: in the country. And the whole thing about depression is

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Speaker 1: is that objectively you may have won, but the depression

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Speaker 1: can absolutely convince you that you actually lost. And that's

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Speaker 1: exactly what happened, and that was the start of a

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Speaker 1: downward spiral. Feederman suffered a stroke last May when he

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Speaker 1: was a candidate for the Senate. A deadly bomb attack

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Speaker 1: in Russia has killed a pro Russian military blogger and

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Speaker 1: art and supporter of the war in Ukraine. Dozens of

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Speaker 1: people were injured in the blast and explosive device ripped

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Speaker 1: through a cafe in the heart of Saint Petersburg. The attack,

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Speaker 1: looking like an assassin nation killed Maxim Foeman, who used

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Speaker 1: the pseudonym Vladmin Tatarski on his blogs. Global news twenty

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Speaker 1: four hours a day, powered by more than twenty seven

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Speaker 1: hundred journalists and analysts in over one hundred twenty countries.

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Speaker 1: I'm Michael bar This is Bloomberg, Nathan. Thank you Michael,

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Speaker 1: now for the Bloomberg Sports Update. Good morning, John stash Hour,

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Speaker 1: Good morning Nathan. It was a Sunday where seven New

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Speaker 1: York area professional teams played. The Islanders and Devils both

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Speaker 1: lost on the road, but the other five one including

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Speaker 1: the Nixon Rangers, who both beat teams from Washington. Knicks

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Speaker 1: at the Garden over the Wizards one eighteen one oh nine,

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Speaker 1: first time in five years. Nicks had four players scored

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Speaker 1: more than twenty points, Jalen Brunson, Quentin Grimes, Manual Quickly

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Speaker 1: and Obie Top and Nick's clinch a playoff. Birth Rangers

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Speaker 1: were in Washington, jumped in front three nothing went on

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Speaker 1: to beat the Capitols five to two. The Nets led

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Speaker 1: Utah by twenty in the fourth quarter of the league

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Speaker 1: schrump to one. Nets held on one ten. They lead

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Speaker 1: Miami by two games. Teams in the race to finish

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Speaker 1: sixth in the East and avoid the play And so

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Speaker 1: that was in Brooklyn. In the Bronx a tape measure shot.

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Speaker 1: Stead in swings, girls flop the deep glove center feel

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Speaker 1: up ball is high. That is fuck hoo us god

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Speaker 1: shut Oh what a shot. That is a Stantonian home

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Speaker 1: run A plus drilled the deep glove center n WFA

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Speaker 1: and four hundred and eighty five feet longest for John

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Speaker 1: Carlos Stanton since a five hundred footer in twenty sixteen

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Speaker 1: when he was with Miami. Aaron Judge also Homer started

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Speaker 1: Kyle de Gasha. Yoka Yankees blanked the Giant six nothing,

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Speaker 1: already their second shutout victory the Mets, also with solid

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Speaker 1: pitching from Kodai Singa and his Met's debut, they won

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Speaker 1: five one at Miami. Tommy fam had three hits, three

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Speaker 1: RBIs LSU won at first ever NCUBA Women's Championship one

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Speaker 1: h two to eighty five over Iowa, highest scoring title

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Speaker 1: game ever. Yukon and San Diego State meet tonight in

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Speaker 1: Houston to decide the men's championship. John Stash Howard Bloomberg

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Speaker 1: Sports live from coast to coast, from New York to

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Speaker 1: San Francisco, Boston to Washington, DC, nationwide on Sirius Exam

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Speaker 1: The Bloomberg Business app and Bloomberg dot Com. This is

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Speaker 1: Bloomberg Daybreak. Good morning, I'm Nathan Hager. We are getting

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Speaker 1: the second quarter of twenty twenty three started with a

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Speaker 1: surgeon energy stocks this morning. The surprise announcement from OPEC

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Speaker 1: Plus that it's taking more than a million barrels of

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Speaker 1: oil off the market per day has shaken this market.

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Speaker 1: So let's get more on what the potential impact could

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Speaker 1: be as we head into this new quarter. For that,

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Speaker 1: we are joined live by Laurie Calvacin ahead of US

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Speaker 1: Equity Strategy at RBC Capital Markets. Laurie, good morning. Do

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Speaker 1: you change your equity strategy now that OPEC plus seems

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Speaker 1: to have changed its strategy? Well, thanks for having me,

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Speaker 1: Honor Vollways, Nathan, and look, there's no change in our

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Speaker 1: strategy here in terms of sectors. We've been telling people

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Speaker 1: here to keep a balance between defense, between values, sequicality

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Speaker 1: and the growth trade. And it's because of you know,

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Speaker 1: the kind of moves we saw on track in the

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Speaker 1: first quarter and the kind of move were likely to

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Speaker 1: see an energy today. We feel like this is a

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Speaker 1: market that's bouncing along, you know, sort of a bottom

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Speaker 1: sort of a similar messy normalization period of what we

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Speaker 1: had in O two, O three, And we think that

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Speaker 1: sector trades in terms of leadership can be vicious in

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Speaker 1: terms of their ability to shift direction quickly. And we

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Speaker 1: frankly have thought that energy was one of the babies

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Speaker 1: that was getting thrown out with the bathwater. Over the

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Speaker 1: last few weeks, valuations have been very, very cheap. I've

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Speaker 1: got cheaper in recent weeks and now we've got this

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Speaker 1: surprise cut. So I I think energy will have a

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Speaker 1: good day, and I think it's it's a part of

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Speaker 1: the market that deserves to have one. What's the potential

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Speaker 1: macroeconomic impact of oil this much oil being taken off

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Speaker 1: the market potentially, and does that have a bleed through

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Speaker 1: into stocks more broadly besides sector moves. Well, look, I

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Speaker 1: think we can always, you know, kind of trace everything

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Speaker 1: back these days to the inflation argument and the FED.

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Speaker 1: I think the FED does, you know, look at inflation

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Speaker 1: in terms of what it can control, so we'll see how,

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Speaker 1: you know, shake out they're going forward in terms of

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Speaker 1: different speeches. I'm not overly worried there because of the

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Speaker 1: banking crisis, because we are still seeing outside of energy,

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Speaker 1: you know, a good trend in moderation and inflation. And

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Speaker 1: in fact, we actually wrote this morning about the Duke's

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Speaker 1: CFO survey that came out last week where some of

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Speaker 1: the questions actually spoke to the seeds of inflation, specifically

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Speaker 1: pricing and wage growth, where CFOs optimism or you know,

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Speaker 1: sort of expectations have taken a hit both for this

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Speaker 1: year and next year. So we think inflation is headed

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Speaker 1: in the right direction, despite you know, what you might

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Speaker 1: get from energy markets. Tell me a little bit more

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Speaker 1: about why you think inflation is heading in the right direction.

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Speaker 1: We have seen some moderation in the Federal reserves preferred

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Speaker 1: measure of inflation. Do you think that's the trajectory that

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Speaker 1: we're going toward? That we could see either further moderation

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Speaker 1: or a further slowdown in inflation. So our economists have

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Speaker 1: been arguing that we're sort of headed back to the

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Speaker 1: three percent type area at the end of the year.

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Speaker 1: If you look at core CPI specifically, and if you

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Speaker 1: look at consensus expectations within Bloomberg on the ECFC function,

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Speaker 1: if you look at things like PC and core PC

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Speaker 1: for quite some time, they've been headed back down in

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Speaker 1: that direction. So I think that you know, despite all

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Speaker 1: the noise that we've been seeing in the marketplace over

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Speaker 1: this debate, that's really been sort of a core belief

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Speaker 1: of the professional forecasting community, and that's really been guiding

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Speaker 1: a lot of things. And in addition to know sort

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Speaker 1: of what we heard from the CFO survey and what

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Speaker 1: we saw on the PC data last week, you know,

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Speaker 1: we are continuing to see good improvement in supply chains.

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Speaker 1: Something else our economists wrote about recently was how he

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Speaker 1: looked at all the regional federal reserves surveys that have

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Speaker 1: come out recently. They've all been showing weakness in the

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Speaker 1: services sector, and that's something that we don't often see

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Speaker 1: when all five regions are an agreement on that. So

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Speaker 1: I think, no matter where you look, you're seeing you Yes,

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Speaker 1: inflation is still high. Yes, it is still a pain

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Speaker 1: that that moderation does seem to be in place. So

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Speaker 1: do you think then that the market is right to

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Speaker 1: be pricing in rate cuts from the Fed this year?

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Speaker 1: A lot of the commentary we're hearing from Fed speakers

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Speaker 1: is that's really not on the table at this point. Well, look,

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Speaker 1: I think the FED always ends up being data dependent,

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Speaker 1: and if you talk to our economists, they are they

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Speaker 1: are baking in a couple of cuts later this year.

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Speaker 1: I think there is some degree of uncertainty in the forecast.

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Speaker 1: But what we have seen if you look at market

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Speaker 1: based expectations on the FED, no matter where people were

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Speaker 1: before PRESCB on terminal, you know cuts, people are pricing

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Speaker 1: in a less aggressive or more accommodative FED for both

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Speaker 1: this year and next year than they were previously. So

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Speaker 1: interest rate expectations bottom line. You know, we can all

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Speaker 1: fight about, you know, the exact member cuts, the exact

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Speaker 1: level of terminal, but expectations are getting rained in and

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Speaker 1: that's ultimately supportive of pe multiples in the stock market.

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Speaker 1: So in our last thirty seconds before we pick up

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Speaker 1: this conversation after the commercial break, what does that mean

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Speaker 1: for earnings expectations if we do see a little bit

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Speaker 1: more moderation from this FED. So look, I think that

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Speaker 1: one of the key things about, you know, sort of

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Speaker 1: the FED debate is just its feed through into uncertainty

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Speaker 1: in terms of outlooks from companies. I think it will

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Speaker 1: end up keeping guidance conservative, even if companies still tell

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Speaker 1: us they weren't affected by SVB or they have the

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Speaker 1: ability you know, to kind of manage whatever gets thrown

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Speaker 1: at them. But I think that's really just, you know,

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Speaker 1: the idea that it weighs on uncertainty and adds to

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Speaker 1: that uncertainty is the big read through. This is Bloomberg

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