WEBVTT - Middle East Truce Talks, Tesla Rallies on China Optimism

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Good morning, I'm Nathan Hager.

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<v Speaker 1>And I'm Karen Moscow. Here are the stories we're following today.

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<v Speaker 3>Karen, we're watching oil drop as well as we begin

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<v Speaker 3>a new trading week. Right now, West Texas Intermediate stand

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<v Speaker 3>about four tenths of one percent at eighty three dollars

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<v Speaker 3>fifty six cents per barrel. And that decline comes as

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<v Speaker 3>the US pushes to broker a peace deal between Israel

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<v Speaker 3>and Hamas we get the details from Bloomberg's Ed Baxter.

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<v Speaker 4>This comes with Secretary of Sir Anthony Blincoln visiting Israel

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<v Speaker 4>today and meeting with Israeli officials. The White House says

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<v Speaker 4>Israel has now agreed to hear concerns. NSA spokesman John

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<v Speaker 4>Kirby says six weeks.

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<v Speaker 1>If we can get that.

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<v Speaker 5>In place, then that gives you six weeks apiece. It

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<v Speaker 5>gives you no fighting for six weeks, and that includes

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<v Speaker 5>no fighting in Rafa. And what we're hoping is that

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<v Speaker 5>after six weeks of a temporary ceasefire, we can maybe

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<v Speaker 5>get something more enduring in place.

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<v Speaker 4>Kirby says, Israel has a read that there will be

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<v Speaker 4>no attack on RAFA until the US concerns are heard.

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<v Speaker 4>He says, we'll see where that goes at Baxter Bloomberg Radio.

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<v Speaker 1>All right, ed, thank you. Adding another wrinkle to the

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<v Speaker 1>discussions or reports at Israeli officials think the International Criminal

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<v Speaker 1>Court could be preparing a rest warrants over the war.

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<v Speaker 1>The New York Times is reporting officials believe Prime Minister

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<v Speaker 1>Benjamin Netanyahoo, other Israelis and some Hamas leaders could be charged.

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<v Speaker 1>The paper says Israeli officials could be accused of preventing

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<v Speaker 1>the delivery of humanitarian aid to the Gaza strip and

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<v Speaker 1>pursuing an excessively harsh response to the Hamas attacks on Israel.

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<v Speaker 3>And here in the US, Karen campus protests over the

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<v Speaker 3>war in Gaza are heading into a third week. Hundreds

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<v Speaker 3>of pro Palestinian demonstrators have been arrested at schools across

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<v Speaker 3>the country since these protests began at Columbia University on

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<v Speaker 3>April eighteenth. House Speaker Mike Johnson's called for the National

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<v Speaker 3>Guard to come in and break up tent encampments, but

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<v Speaker 3>senators like fellow Republican JD. Vance are dismissing that idea.

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<v Speaker 6>I don't know if you need to call in the

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<v Speaker 6>National Guard.

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<v Speaker 7>Maybe you just call in the police.

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<v Speaker 8>Right.

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<v Speaker 6>This is often framed as a free speech debate.

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<v Speaker 3>Senator Vance tells Fox News Sunday students have a right

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<v Speaker 3>to speak their minds, but not to set up tent

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<v Speaker 3>cities in public spaces. Democratic Senator Tim Kaine says campus

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<v Speaker 3>security should play more of a role.

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<v Speaker 2>Calling in the National Guard to college campuses.

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<v Speaker 7>For so many people would recall what happened when that

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<v Speaker 7>was done during the Vietnam War.

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<v Speaker 2>And it didn't end well.

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<v Speaker 3>Senator Kane was on NBC's Meet the Press, which can

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<v Speaker 3>be heard Sundays on Bloomberg Radio along with Fox News Sunday.

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<v Speaker 1>Well, Nathan, we now turn to the markets, where more

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<v Speaker 1>corporate earnings and a FED decision highlight the week. Fetchair. J.

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<v Speaker 1>Powell will address reporters after the Fed's rate decision on Wednesday,

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<v Speaker 1>when the Central Bank is widely expected to hold borrowing

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<v Speaker 1>costs at a more than two decade high. Here's what

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<v Speaker 1>Goldman Sachs Chief Asia economist Andrew Tilton is expecting.

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<v Speaker 9>He needs to keep the options open for the FED

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<v Speaker 9>after a set of upside surprises to inflation in the

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<v Speaker 9>first quarter we don't know for sure whether it we'll

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<v Speaker 9>see inflation down to target in time for the FED

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<v Speaker 9>to begin cutting by midyear. Our forecast, we think the

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<v Speaker 9>FED starts cutting in July. We think we'll see a

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<v Speaker 9>lower run rate of inflation in Q two and beyond,

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<v Speaker 9>but that's still a forecast, not a fact.

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<v Speaker 1>And then I'll look from Goldman's sax as Andrew Tilton

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<v Speaker 1>comes as expectations for rate reductions have been pursed further

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<v Speaker 1>into twenty twenty four, investors are now betting on two

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<v Speaker 1>cuts at most by year end.

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<v Speaker 10>Well.

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<v Speaker 3>Meanwhile, Karen an analysis of more than sixty thousand FED

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<v Speaker 3>news headlines shows Jay Powell's words in December, when he

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<v Speaker 3>hinted at a swifter pivot toward rate cuts, gave markets

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<v Speaker 3>a boost and likely helped the US economy dodge a downturn.

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<v Speaker 3>Bloomberg Economics FED Sentiment Index is powered by a natural

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<v Speaker 3>language processing algorithm. It shows while Powell's words led to

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<v Speaker 3>a significant cut in borrowing costs, they also probably added

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<v Speaker 3>about a half percentage point two inflation over the year.

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<v Speaker 3>Despite the FED share being forced into a reversal of

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<v Speaker 3>his comments this month, Bloomberg's analysis shows Powell has only

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<v Speaker 3>undone a fraction of the stimulus unleashed his December press conference.

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<v Speaker 1>Well, Nathan, there have been major swings in the value

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<v Speaker 1>of the yen in trading today. The Japanese currency wee

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<v Speaker 1>can pass one sixty to the dollar for the first

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<v Speaker 1>time since in nineteen ninety before rebounding strongly. Traders are

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<v Speaker 1>on high alert for signs of intervention from Japanese authorities.

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<v Speaker 1>Bloomberg Markets Live Asia lead Garfield Reynolds says they don't

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<v Speaker 1>have a lot of options considering the wide gulf and

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<v Speaker 1>interest rates with the US.

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<v Speaker 11>Yes, the BOJ is on a tightening path, but it's

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<v Speaker 11>a slow path that makes it hard for the Ministry

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<v Speaker 11>of Finance to come in strongly to drive the dollar

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<v Speaker 11>yen down, especially when everything else is busy driving the

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<v Speaker 11>dollar up against everything.

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<v Speaker 1>And Bloomberg's Garfield Reynolds says last week the BOJ indicated

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<v Speaker 1>financial conditions or remain easy, though policymakers have repeatedly warned

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<v Speaker 1>that depreciation won't be tolerated if it goes too far,

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<v Speaker 1>too fast.

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<v Speaker 3>Well, checking Company News this morning, Karen shares of Tesla

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<v Speaker 3>are higher by more than seven percent. In your li

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<v Speaker 3>training the ev maker is set to clear a key

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<v Speaker 3>hurdle to introduce its advanced assisted driving features in China.

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<v Speaker 3>Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong.

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<v Speaker 10>Sources say Tesla will partner with byd in mapping and

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<v Speaker 10>navigation functions. The US automaker will then be able to

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<v Speaker 10>deploy its autonomous driving services. This would be on the

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<v Speaker 10>basis of lane level navigation and mapping provided by by

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<v Speaker 10>do Bydwo is one of only about twenty qualified suppliers

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<v Speaker 10>with the key module for self driving functions. The news

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<v Speaker 10>comes as Tesla CEO Elon Musk made a surprise visit

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<v Speaker 10>to China. He was immediately granted a meeting with Premier

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<v Speaker 10>Lee Chung in Hong Kong. Brian Curtis Bloomberg.

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<v Speaker 1>Radio, All right, Brian, thank you. We have news this

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<v Speaker 1>morning involving another one of Musk's companies. Thousands of former

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<v Speaker 1>Twitter employees say they are still owned severance pay. Today,

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<v Speaker 1>the first depositions get under way, starting with Musk and

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<v Speaker 1>Bloomberg's Amy Morris has a preview.

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<v Speaker 6>This will be the first arbitration hearings involving those employedployees

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<v Speaker 6>who say they were cheated out of severance when Elon

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<v Speaker 6>Musk bought Twitter in October of twenty twenty two. An

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<v Speaker 6>email from the law firm representing almost two thousand former

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<v Speaker 6>Twitter employees plus more than a dozen class action lawsuits

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<v Speaker 6>says the deposition will be in person and last for

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<v Speaker 6>seven hours. The company, formerly known as Twitter, which Musk

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<v Speaker 6>has since renamed X, has been accused in multiple suits

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<v Speaker 6>of numerous labor and workplace violations. A spokesman for X

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<v Speaker 6>has declined to comment. In Washington, Amy Moore as Bloomberg Radio.

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<v Speaker 3>All right, Amy, thank you. There are plenty of developments

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<v Speaker 3>involving Paramount Global. Those shares are hired by about four

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<v Speaker 3>and a half percent in early trading, Bloomberg News has

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<v Speaker 3>learned that sky Dance has made its best and final

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<v Speaker 3>offer for the company. Sources say the Redstone family and

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<v Speaker 3>film producer David Ellison have both offered concessions to make

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<v Speaker 3>a possible change in control at Paramount Global to make

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<v Speaker 3>it more appealing to the company's other investors. Paramount CEO

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<v Speaker 3>Bob Bakish is expected to be replaced on an interim

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<v Speaker 3>basis by a management committee as soon as today, and it.

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<v Speaker 1>Is time now for a look at some of the

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<v Speaker 1>other stories making news in New York and around the world,

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<v Speaker 1>and for that we're joined by A Bloomberg's Michael Barr. Michael,

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<v Speaker 1>good Morning, Good morning, Karen.

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<v Speaker 8>Small towns in Oklahoma are beginning a long cleanup after

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<v Speaker 8>tornado's flattened homes and buildings and killed at least four people,

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<v Speaker 8>including an infant. Damage was extensive in the community of Sulfur,

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<v Speaker 8>where a weekend tornado crumpled many downtown buildings and sheared

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<v Speaker 8>the roofs off houses across a fifteen block radius. Hospitals

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<v Speaker 8>across the state reported about one hundred injuries. This man

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<v Speaker 8>lives in Holdenville.

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<v Speaker 12>My brother lives down there.

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<v Speaker 13>Another mile of trying to get to him, I think

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<v Speaker 13>he blowed his tractor fed away and the house is

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<v Speaker 13>found from there.

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<v Speaker 8>White House officials said President Joe Biden spoke to Oklahoma

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<v Speaker 8>Governor Kevin Stitt on Sunday and offered the full support

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<v Speaker 8>of the federal government. A tornado swept over at Trinity,

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<v Speaker 8>Texas last night, destroying a home and damaging others, injuring

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<v Speaker 8>two people who were transported by ambulance to the hospital.

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<v Speaker 8>Trinity County Sheriff Woody Wallace says there are no fatalities.

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<v Speaker 13>Got to worry about, Folie. High winds come through all

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<v Speaker 13>these power lines. We got power lines down everywhere out here,

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<v Speaker 13>so I'm rebb Mar. You go through them and there's

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<v Speaker 13>water on the ground, it's fab not gonna end well

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<v Speaker 13>for you.

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<v Speaker 8>Sheriff Wallace says there is the possibility for more tornadoes.

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<v Speaker 8>New York Governor Cathy Hulkell overnight started a state investigation

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<v Speaker 8>into Sandra Dorley, the Monroe County District Attorney in Rochester,

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<v Speaker 8>after bodycam footage showed the DA trying to avoid a

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<v Speaker 8>speeding ticket. The officer followed her home after she refused

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<v Speaker 8>to pull over for a traffic stop until she drove

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<v Speaker 8>to the house.

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<v Speaker 6>What is the reason you're so against what I'm doing.

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<v Speaker 9>I'm doing my job.

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<v Speaker 2>You say you're a DA I had the DA.

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<v Speaker 8>Okay Governor Cathy Hokel referred Dorley's case to the Commission

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<v Speaker 8>for Prosecutorial Conduct, saying Dorley has undermined her ability to

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<v Speaker 8>hold others account violating the law. South Dakota Governor Christy Nome,

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<v Speaker 8>considered to be in the running to become former President

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<v Speaker 8>Trump's pick for Vice president is responding to the backlash

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<v Speaker 8>over a story in a upcoming memoir. In the book,

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<v Speaker 8>she writes about shooting her dog for its bad behavior,

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<v Speaker 8>including killing the neighbors chickens in killing a nasty, mean goat.

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<v Speaker 8>No one responded. I followed the law and was being

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<v Speaker 8>a responsible parent, dog owner, and neighbor. Global News twenty

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<v Speaker 8>four hours a day and whenever you want it with

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<v Speaker 8>the Bloomberg News.

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<v Speaker 12>Now.

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<v Speaker 8>I'm Michael Barr. This is Bloomberg. Karen.

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<v Speaker 1>All right, Michael Berry, thank you. Time now for the

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<v Speaker 1>Bloomberg Sports Update with John Stanshauer.

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<v Speaker 7>John Good morning, Good morning, Karen. Good Sunday for the

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<v Speaker 7>teams from the Garden. Both went south on ninety five,

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<v Speaker 7>got game four wins, so the Rangers advanced in the

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<v Speaker 7>second round, and then NIXT took a big step in

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<v Speaker 7>that direction in Philly beat the Sixers ninety seven ninety

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<v Speaker 7>two and lead the series three to one. Jalen Brunson's

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<v Speaker 7>forty seven points the most in KNIXT playoff history. Benard

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<v Speaker 7>King scored forty six in nineteen eighty four. Brunson clearly

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<v Speaker 7>outplayed Sixers star Joel Mbi, who took the same number

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<v Speaker 7>of shots he took in Game three. In that game,

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<v Speaker 7>Mbat scored fifty points. This one, he had just over

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<v Speaker 7>half that twenty seven. Mb did not make a basket

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<v Speaker 7>in the fourth quarter, shot out for five. Game five

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<v Speaker 7>tomorrow at MSG. As for the Rangers, they never trailed

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<v Speaker 7>in Washington. The game was tied in the third period.

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<v Speaker 2>Paneren at right wing dranks it to the hash box.

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<v Speaker 2>Paneren leaves it back for Fox. Fox passed to the

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<v Speaker 2>far wings.

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<v Speaker 8>Savana Jad out to Paneren with.

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<v Speaker 12>A shott to hard Tammy Peneren.

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<v Speaker 7>How the power play how the Rangers take a three

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<v Speaker 7>to lead and WPN. Rangers had an empty NT of

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<v Speaker 7>one four to two for their first series sweep since

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<v Speaker 7>two thousand and seven. They're the first team to advance

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<v Speaker 7>and the Stanley Cup Playoffs. Minnesota's the first to move on.

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<v Speaker 7>In the NBA finished the sweep of Phoenix. Anthony Edwards

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<v Speaker 7>scored forty. The Timberwolves, lay in the game, suffered a

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<v Speaker 7>serious knee injury to their coach Chris Finch as he

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<v Speaker 7>collided with his point guard Mike Conley. The Clippers blew

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<v Speaker 7>a thirty one point lead in Dallas, still won to

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<v Speaker 7>tie the series of two. Indiana again beat injury ravage Milwaukee.

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<v Speaker 7>The Bucks were without both Deannas Sunte di Compo and

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<v Speaker 7>Damian Lillard, and the Pacers lead three to one. NHL

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<v Speaker 7>in the West. Wins for Edmonton, Colorado, Vancouver they all

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<v Speaker 7>lead their series three to one. Well a weekend for

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<v Speaker 7>the Yankees. In two games, thirty runs, thirty seven hits,

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<v Speaker 7>They've beat Milwaukee fifteen to five. Anthony Rizzo four hits

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<v Speaker 7>included career home run number three hundred. Dramatic win for

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<v Speaker 7>the Mets beat the Cardinals four to two on a

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<v Speaker 7>Mark Bento's home run in the eleventh inning. John Stash

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<v Speaker 7>Edward Bloomberg Sports Karen Nathan.

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<v Speaker 12>Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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<v Speaker 3>Good morning, I'm Nathan Hager at the start of another

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<v Speaker 3>busy week in store for investors. More corporate earnings due

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<v Speaker 3>out and a made decision from the Fed on the

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<v Speaker 3>way before, but really when days out? Actually, so, let's

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<v Speaker 3>get you ready for it. Lori Calvesina is with us

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<v Speaker 3>this morning in our Interactive Broker Studios in New York.

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<v Speaker 3>The head of US equity strategy at RBC Capital Markets, Laurie,

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<v Speaker 3>Good morning, So what's the bigger deal for you this week?

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<v Speaker 3>The earnings or what we hear from Chairman Powell this week?

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<v Speaker 14>So, you know, I hate to say it, but I

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<v Speaker 14>think for me, it's probably the earnings. We've got one

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<v Speaker 14>hundred and sixty six companies in the SMP reporting this week,

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<v Speaker 14>at least last I checked, So I think, you know,

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<v Speaker 14>as always, people are going to pay attention to the FED. Personally,

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<v Speaker 14>I'm looking for that commentary to kind of catch up

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<v Speaker 14>with where the market already is. I'm much more interested, frankly,

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<v Speaker 14>to hear what companies are saying about the current environment.

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<v Speaker 3>Okay, so we have seen a big swath of companies

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<v Speaker 3>report already. What are some of your takeaways from what

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<v Speaker 3>we've heard from the companies that have reported so far.

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<v Speaker 14>Somehow we managed to get through most of the reports

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<v Speaker 14>that came out last week, and you know, I think

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<v Speaker 14>the themes are still evolving. But I would say number one,

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<v Speaker 14>we're not seeing any kind of you know, big problem

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<v Speaker 14>with the economy demand anything like that. There's a laundry

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<v Speaker 14>list of pros and cons that companies are talking about

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<v Speaker 14>in regards to this market. For me, one thing that

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<v Speaker 14>did jump out is that interest rate commentary. There's a

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<v Speaker 14>lot of various expectations about what the FED is going

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<v Speaker 14>to do backed in I remember reading one company talking

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<v Speaker 14>about three cuts, and so I do think, you know,

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<v Speaker 14>there's a little bit of a slippage in terms of

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<v Speaker 14>where corporate America is versus the equity market itself or

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<v Speaker 14>the fixed income market. I do think that geopolitical commentary

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<v Speaker 14>is something I'm paying a lot of attention to. It's

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<v Speaker 14>continued to be mentioned as a general risk, but no

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<v Speaker 14>sort of you know, kind of overt impact on demand

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<v Speaker 14>for ether consumers or corporate yet.

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<v Speaker 3>Well, that does steer us toward whatever we could. Hear

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<v Speaker 3>from Chairman Powell on Wednesday in the Made decision, we've

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<v Speaker 3>done an analysis that shows the December Duvish pivot really

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<v Speaker 3>helped to fuel the rally that we saw at the

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<v Speaker 3>first quarter. What's the chance that pivot the other way

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<v Speaker 3>does some damage to this rally?

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<v Speaker 14>Well, well, I'll tell you, you know, I've heard really

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<v Speaker 14>since the big getting of February in my client meetings,

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<v Speaker 14>the idea is the US economy so hot, how can

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<v Speaker 14>the FED possibly even cut this year? So I do

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<v Speaker 14>think equity markets, equity investors at least have already started

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<v Speaker 14>to come to terms with that potential idea. That's not

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<v Speaker 14>really reflected in market pricing right now as far as

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<v Speaker 14>I understand, But I do think this may be one

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<v Speaker 14>instance where equity markets have already assumed a scenario in

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<v Speaker 14>contrast with what they you know, we're thinking back in January.

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<v Speaker 3>So is there a chance then that the stocks can

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<v Speaker 3>continue to rally even with rate cut expectations getting pushed

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<v Speaker 3>back as far as they have in the market.

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<v Speaker 14>So I think it gets harder from here. I think

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<v Speaker 14>a hike discussion, which is not really something I'm hearing

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<v Speaker 14>about from investors right now, I think that would be very,

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<v Speaker 14>very different from just a no cut scenario in the

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<v Speaker 14>mind of equity investors. I'll tell you, Nathan, when I

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<v Speaker 14>talked to investors, you know, they're clearly disappointed that we're

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<v Speaker 14>not getting this interest right down draft story. But at

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<v Speaker 14>the same time, if the economy continues to come through hot,

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<v Speaker 14>at least a lot of the investors I speak with,

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<v Speaker 14>I think they want the FED to do the work

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<v Speaker 14>that needs to be done to get inflation down.

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<v Speaker 3>Though we did get that weaker than expected first read

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<v Speaker 3>on first quarter GDP last week, What does that tell

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<v Speaker 3>you about what we could get in terms of corporate

0:15:09.440 --> 0:15:10.520
<v Speaker 3>earnings down the line.

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<v Speaker 14>That's a really interesting report to me. I mean generally,

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<v Speaker 14>what our economists are saying, and I think this has

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<v Speaker 14>been echoed around the street, is that the underlying details

0:15:18.160 --> 0:15:20.760
<v Speaker 14>about that report really, you know, sort of speak to

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<v Speaker 14>the idea that the economy is still strong, the consumer

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<v Speaker 14>is still strong. There were some quirky things that happened

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<v Speaker 14>with the data that caused that headline number to be

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<v Speaker 14>a bit lower than expected. Now we'll see, you know,

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<v Speaker 14>if that narrative holds up, But for now, that seems

0:15:33.720 --> 0:15:36.160
<v Speaker 14>to be what the economic story is, or the economic

0:15:36.240 --> 0:15:38.280
<v Speaker 14>read is on that report, and I think we're hearing

0:15:38.320 --> 0:15:40.840
<v Speaker 14>echoes of that in corporate commentary. I'm really just not

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<v Speaker 14>seeing any sort of demand problem coming through in the

0:15:44.160 --> 0:15:45.840
<v Speaker 14>company transcripts that we're reading through.

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<v Speaker 3>Okay, just thirty seconds left here, Lourie. What's the biggest

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<v Speaker 3>risk for you when it comes to equities is a geopolitics,

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<v Speaker 3>earnings or rates?

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<v Speaker 14>I think geopolitics are always a huge one that markets

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<v Speaker 14>have trouble digesting in advance. But I do think the

0:15:57.200 --> 0:16:00.920
<v Speaker 14>rate story is important. Again, I think no cuts are fine.

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<v Speaker 14>I think hikes are a different matter.

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