WEBVTT - Bloomberg Daybreak: April 28, 2022 - Hour 1 (Radio) 0:00:02.920 --> 0:00:06.240 Live from the Bloomberg Interactor Berger Studios. This is Bloomberg 0:00:06.280 --> 0:00:10.080 Daybreak for a Thursday, April two. Coming up this hour, 0:00:10.400 --> 0:00:14.440 shares of Netta surge after Facebook adds more users than expected. 0:00:14.520 --> 0:00:18.159 Apple and Amazon report this afternoon. President Biden plans to 0:00:18.160 --> 0:00:21.520 deliver remarks today on more support for Ukraine, and Americans 0:00:21.560 --> 0:00:25.200 grow more pessimistic about their finances as infliction takes a toll. 0:00:25.320 --> 0:00:27.680 New York's MTA wants to ramp up its fleet of 0:00:27.720 --> 0:00:31.000 electric buses. Plus docr FLGI clarifies is a comment that 0:00:31.040 --> 0:00:33.920 the US is not in the pandemic phase. I'm Michael 0:00:33.960 --> 0:00:37.080 blarn More Ahead, I'm John Stay Sharon Sports fit straight 0:00:37.120 --> 0:00:39.760 win for the Yankees, the Mets lost as the benches 0:00:39.840 --> 0:00:45.360 empty in the NFL draft, agins tonight. That's all training 0:00:45.400 --> 0:00:49.360 ahead on Bloomberg Daybreak on Bloomberg eleven three, on New York, 0:00:49.520 --> 0:00:54.200 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.480 --> 0:00:59.240 Bloomberg nine sixties and Francisco Sirius XAM one nineteen and 0:00:59.320 --> 0:01:02.080 around the world Old on Bloomberg Radio dot Com and 0:01:02.240 --> 0:01:09.240 via The Bloomberg Business. Good Morning, I'm Nathan Hagar and 0:01:09.319 --> 0:01:13.559 I'm Karen Moscow, and futures this morning are higher. SNP 0:01:13.720 --> 0:01:17.039 futures up seventy five points down futures have three hundred 0:01:17.080 --> 0:01:19.959 eighty five and Naztec futures have three hundred twenty three. 0:01:20.400 --> 0:01:22.800 Ten year treasury up to thirty seconds, you have two 0:01:22.800 --> 0:01:24.720 point eight two percent and a yield on the two 0:01:24.840 --> 0:01:28.000 year two point five eight percent. And I make screwed 0:01:28.000 --> 0:01:30.119 oil is up eight ten percent or eighty five cents 0:01:30.120 --> 0:01:32.440 at a hundred two dollars eighty five cents and barrel 0:01:32.520 --> 0:01:34.520 Nathan Karen, we are seeing a two and a half 0:01:34.560 --> 0:01:37.160 percent lift and Nastac futures this morning. It comes after 0:01:37.360 --> 0:01:42.560 Facebook parent Metas earnings shares are up almost eighteen percent 0:01:42.720 --> 0:01:46.920 after Facebook's main social network added more users than projected. 0:01:47.280 --> 0:01:49.760 Company says revenue would have been higher if not for 0:01:49.800 --> 0:01:52.320 the war in Ukraine. Man Deep Singh is senior technology 0:01:52.320 --> 0:01:56.040 analysts for Bloomberg Intelligence. The core of Facebook and Instagram 0:01:56.080 --> 0:01:59.360 engagement seems to be holding up quite well, so I 0:01:59.400 --> 0:02:02.800 think these are are definitely good numbers. They missed on 0:02:02.840 --> 0:02:04.960 the top line, but we know it's because of the 0:02:05.000 --> 0:02:07.720 ad pricing, and I think that was sort of expectant 0:02:08.200 --> 0:02:11.880 Bloomberg Intelligence senior analyst Mandieve Singh says Facebook added thirty 0:02:11.919 --> 0:02:15.520 one million new daily active users in the recent quarter. Well, Nathan, 0:02:15.600 --> 0:02:18.359 let's look at some other stocks on the move following earnings. 0:02:18.360 --> 0:02:20.440 Your poor shares a qual calm Or up more than 0:02:20.520 --> 0:02:23.480 seven percent. The chipmaker gave a strong sales forecast with 0:02:23.520 --> 0:02:26.760 the current quarter. Ford beat earnings estimates and reaffirmed its 0:02:26.800 --> 0:02:29.360 guidence for the year. That stocks out more than two percent, 0:02:29.639 --> 0:02:32.560 And the biggest loser this morning is Telenoc Health shares 0:02:32.600 --> 0:02:35.919 are plunging more than thirty five percent, the telemedicine company 0:02:35.960 --> 0:02:38.640 cutting its revenue and earnings guidance for the year, and 0:02:38.720 --> 0:02:41.040 the earnings continue to roll in today, Karen, With big 0:02:41.080 --> 0:02:43.800 tech once again leading the way. After the bell, we 0:02:43.840 --> 0:02:46.200 hear from Apple and Amazon, and we get a preview 0:02:46.200 --> 0:02:48.960 now from Bloomberg's Tom Busby. Well investors will see if 0:02:48.960 --> 0:02:52.320 Apple saw continued growth and sales of iPhones, iPads, max 0:02:52.480 --> 0:02:56.880 and services despite supply chain problems and chip shortages. Forecast 0:02:56.880 --> 0:02:59.639 call for earnings per share of one dollar forty three 0:02:59.639 --> 0:03:02.840 cents on revenue of just over ninety four billion dollars. 0:03:03.320 --> 0:03:06.280 Apple also expected to announce a share buyback program of 0:03:06.320 --> 0:03:09.800 as much as ninety billion dollars. As for Amazon investors, 0:03:09.800 --> 0:03:12.440 we'll see if it's Amazon Web Services, the cloud computing 0:03:12.520 --> 0:03:15.240 unit will off set and expected slow down and online 0:03:15.280 --> 0:03:18.960 sales now that many pandemic restrictions have been lifted. Forecast 0:03:18.960 --> 0:03:20.920 call for earnings per share of eight fifty five on 0:03:20.960 --> 0:03:24.200 revenues of more than a hundred sixteen billion. I'm Tom Busby, 0:03:24.360 --> 0:03:27.000 Bloomberg Daybreak. All right, Tom, thank you. Well. It's also 0:03:27.040 --> 0:03:30.040 a busy day for earnings in Europe, with seventy companies reporting. 0:03:30.080 --> 0:03:33.480 Shares a barclayser up almost two percent, fixed income, currency 0:03:33.480 --> 0:03:36.600 and commodities revenue jump, thirty seven percent of the British bank. 0:03:37.200 --> 0:03:41.680 Shares of Standard Chartered are soaring thcent. Earnings topped estimates 0:03:41.680 --> 0:03:44.320 and the lender raised its revenue outlook. And it's also 0:03:44.360 --> 0:03:46.240 a big day on the economic front, Karen, we get 0:03:46.280 --> 0:03:49.400 a closely watched reading on first quarter GDP this morning. 0:03:49.400 --> 0:03:52.840 The forecast is for a one percent gain. Bloomberg's Michael 0:03:52.880 --> 0:03:56.960 McKee has details COVID and Russia's war slowed growth dramatically 0:03:56.960 --> 0:03:59.320 in the first three months of the year. Some analysts 0:03:59.320 --> 0:04:02.920 even fake the economy contracted, but a dismal GDP figure 0:04:03.000 --> 0:04:06.560 will mask some true strength. Consumers spending is forecast to 0:04:06.560 --> 0:04:09.480 be strong, and business investment appears to be holding up. 0:04:09.800 --> 0:04:12.480 Real estate was a strong point during the quarter. The 0:04:12.480 --> 0:04:15.200 impact on growth is likely largely to have come from 0:04:15.200 --> 0:04:18.919 a slower pace of inventory building as companies finally restocked. 0:04:19.400 --> 0:04:22.880 Higher oil prices play a role as well. Michael McKee 0:04:22.920 --> 0:04:25.960 Bloomberg Daybreak, All right, Michael, thank you, But higher inflation 0:04:26.000 --> 0:04:29.080 as taking a toll on the personal finances of many Americans, 0:04:29.080 --> 0:04:31.279 and it's also heading their outlook. We get the latest 0:04:31.320 --> 0:04:34.040 line from Bloomberg's Randy A Young. Good morning Randia, Good 0:04:34.040 --> 0:04:36.919 morning Karen. A gallop pole shows less than half of 0:04:36.960 --> 0:04:41.000 Americans rate their financial situation as good or excellent, and 0:04:41.120 --> 0:04:44.880 some forty eight percent say it's worsening. That's a similar 0:04:45.040 --> 0:04:47.839 level seen a month into the pandemic and during the 0:04:47.880 --> 0:04:52.720 financial crisis of twenty eight So what's driving to worry? 0:04:52.760 --> 0:04:55.240 The survey finds that a record thirty two percent of 0:04:55.240 --> 0:04:58.200 Americans rank inflation and a high cost of living as 0:04:58.240 --> 0:05:02.160 the most important financial problem facing their family today. Live 0:05:02.200 --> 0:05:04.520 in New York, I'm renned a Young Bloomberg Day break 0:05:04.560 --> 0:05:06.600 all right, Nita, thank you. Let's turn to some moves 0:05:06.640 --> 0:05:09.640 in Asia now. Overnight, the Japanese yen hit a two 0:05:09.680 --> 0:05:12.560 decade low against the dollar. The move comes after the 0:05:12.800 --> 0:05:15.760 Bank of Japan doubled down on bond purchases. The central 0:05:15.800 --> 0:05:17.960 Bank said it would buy an unlimited amount of bonds 0:05:18.000 --> 0:05:20.880 that fixed rates every business day and checking the end 0:05:20.960 --> 0:05:23.279 right now it is at one thirty point nine five 0:05:23.320 --> 0:05:25.520 against the dollar. Well, now, Nathan will look at the 0:05:25.600 --> 0:05:28.200 latest on the war in Ukraine. President Biden plans to 0:05:28.200 --> 0:05:31.600 deliver remarks later today on support for Ukraine as his 0:05:31.640 --> 0:05:34.880 administration looks as end Congress a proposal for weapons that 0:05:34.920 --> 0:05:38.039 Bloomberg said Baxter has that story. The White House says 0:05:38.120 --> 0:05:40.080 it could go to the Hill as early as today. 0:05:40.279 --> 0:05:43.360 Spokeswoman Jansaki says they're still working on the final ast. 0:05:43.400 --> 0:05:44.880 You don't have a number for you at this point 0:05:44.880 --> 0:05:47.200 in time, but there is plans for this to be 0:05:47.480 --> 0:05:50.640 a proposal to go through the fiscal year, and it 0:05:50.680 --> 0:05:55.240 will include um as our path packages have included security 0:05:55.520 --> 0:06:00.440 or military assistance, humanitarian economic assistance, which seems to suggest 0:06:00.520 --> 0:06:03.320 a large number. The President has promised delivery by the 0:06:03.400 --> 0:06:06.000 end of the week. In San Francisco. I'm at Baxtter 0:06:06.080 --> 0:06:08.520 Bloomberg day Break. All right, ed, thanks Meantime, in Europe, 0:06:08.600 --> 0:06:11.240 several countries are looking for clearer guidance from the EU 0:06:11.400 --> 0:06:14.640 on Russia's demand to pay for natural gas in rubles. 0:06:14.760 --> 0:06:18.200 Russia cut the taps to Poland and Bulgaria yesterday because 0:06:18.240 --> 0:06:20.320 they refused to pay in the currency, and now The 0:06:20.320 --> 0:06:24.440 Financial Times reports several European nations, including Germany, are preparing 0:06:24.520 --> 0:06:28.200 to open ruble accounts to meet Vladimir Putin's demands. This 0:06:28.240 --> 0:06:31.520 all adds to a volatile energy market. According to Patrick Dehan, 0:06:31.640 --> 0:06:34.520 head of petroleum analysis at gas Buddy, there's a lot 0:06:34.640 --> 0:06:38.000 in said about Russia and Ukraine and now Russia today 0:06:38.160 --> 0:06:42.360 escalating the situation by UH stifling the flow of natural 0:06:42.400 --> 0:06:45.599 gas to Poland and Bulgaria. And of course we have 0:06:46.320 --> 0:06:50.320 a global economy that's been rebounding. Patrick de Han with 0:06:50.400 --> 0:06:53.440 gas Buddy spoke with our Washington correspondent Joe Matthew on 0:06:53.440 --> 0:06:56.080 Bloomberg Sound On. You can catch the show weekdays at 0:06:56.120 --> 0:06:59.760 five pm Eastern on Bloomberg Radio. Right now, SMP futures 0:06:59.760 --> 0:07:02.839 are up seventy five point STOUT future is up three 0:07:02.920 --> 0:07:05.360 nastack future is up three twenty five points. That's a 0:07:05.400 --> 0:07:07.720 game of two and a half percent ten. Your treasury 0:07:07.760 --> 0:07:10.720 is up to thirty seconds. The yield two two and 0:07:10.800 --> 0:07:12.800 the yield on the two year right now two point 0:07:12.880 --> 0:07:16.280 five eight percent. Straight ahead, your latest local headlines and 0:07:16.320 --> 0:07:23.840 a check of sports. This is Bloomberg in sound five 0:07:23.880 --> 0:07:25.760 oh seven on Wall Street where a forty one degrees 0:07:25.800 --> 0:07:28.200 in Central Park dealing with a truck accident on Route 0:07:28.200 --> 0:07:30.920 one and nine towards Route four forty in Jersey City. 0:07:31.000 --> 0:07:33.680 Details kind of in traffic. First, Michael Bars here with 0:07:33.680 --> 0:07:35.480 more on what's going on in New York and around 0:07:35.520 --> 0:07:38.080 the world. Good morning, Michael, Good morning Nathan. New York's 0:07:38.160 --> 0:07:41.480 MTA plans to ramp up its number of electric buses, 0:07:41.560 --> 0:07:46.000 part of the agency's goal for zero emissions by twenty forty. 0:07:46.120 --> 0:07:48.840 For the nation's largest bus fleet, The m t A 0:07:48.840 --> 0:07:52.640 anticipate sixty new electric buses will start arriving later this year, 0:07:52.640 --> 0:07:56.240 with another four hundred seventy coming in three to four years. 0:07:56.600 --> 0:07:59.160 It will transition its shifty eight hundred bus fleet to 0:07:59.200 --> 0:08:04.520 all electric vehicles. Dr Anthony Fauci has clarifying comments he 0:08:04.600 --> 0:08:07.520 made suggesting that the COVID nineteen pandemic is over in 0:08:07.520 --> 0:08:11.080 the US. Fauci said this initially on the PBS News Hour. 0:08:11.560 --> 0:08:14.680 We are certainly right now in this country out of 0:08:14.720 --> 0:08:19.000 the pandemic faith. But now Dr Fauci says the pandemic 0:08:19.040 --> 0:08:21.360 in the U s isn't over, but is in a 0:08:21.400 --> 0:08:25.560 more controlled stage. New York's highest court has rejected new 0:08:25.560 --> 0:08:30.280 congressional maps widely seen as favoring Democrats. The state's Court 0:08:30.280 --> 0:08:32.920 of Appeals agreed with a group of Republican voters who 0:08:32.960 --> 0:08:37.960 said the district boundaries were unconstitutionally gerrymandered and that the 0:08:38.040 --> 0:08:41.520 legislature didn't follow proper procedure in passing the maps. The 0:08:41.520 --> 0:08:44.720 decision may delay New York primary elections by as much 0:08:44.720 --> 0:08:47.840 as two months. The parents of American Trevor Reid said 0:08:47.840 --> 0:08:50.840 they dared not build up their hopes when they first 0:08:50.840 --> 0:08:53.640 heard their son might be freed from Russia after being 0:08:53.679 --> 0:08:56.200 held three years. Yesterday they got the call that they 0:08:56.200 --> 0:08:59.240 have been waiting for. The former marine was swapped for 0:08:59.280 --> 0:09:01.960 a Russians and are being held by the US. They 0:09:02.040 --> 0:09:04.360 expect read to come home in a few days. Key 0:09:04.440 --> 0:09:07.800 negotiator and former US Ambassador to the United Nations. Bill 0:09:07.920 --> 0:09:11.559 Richardson says that he has worked with two different administrations 0:09:11.559 --> 0:09:15.160 since twenty nineteen to secure Read's release and notes that 0:09:15.400 --> 0:09:18.160 these kinds of deals take a long time to come 0:09:18.200 --> 0:09:22.720 to fruition. These exchanges take a long time. During the 0:09:22.720 --> 0:09:26.440 Trump administration, it didn't work, and the relationship between President 0:09:26.440 --> 0:09:29.160 Trump and the Russians was better than it is now, 0:09:29.280 --> 0:09:33.120 but it didn't work, so it depends on timing luck. 0:09:34.240 --> 0:09:37.520 Richardson says. Other Americans are still being held in Russia, 0:09:37.559 --> 0:09:40.000 including w n B A Star, Britney Grinder, and another 0:09:40.040 --> 0:09:43.679 former Marine, Paul Wheeland. The crew for astronauts arrived on 0:09:43.800 --> 0:09:47.439 our inside the International Space Station and dragon hatches open 0:09:47.559 --> 0:09:50.800 and they are welcoming the crew for extronauts on board. 0:09:51.160 --> 0:09:54.439 The NASA crew blasted off from Florida yesterday morning. Global 0:09:54.480 --> 0:09:56.800 News twenty four hours a day on air and on 0:09:56.840 --> 0:10:00.160 Bloomberg Quick Take, powered by more than hundred journalist tod 0:10:00.160 --> 0:10:02.520 analists more than a hundred, twenty countries. I'm Michael bar 0:10:02.679 --> 0:10:09.920 This is Bloomberg, Nathan Michael. Thank you almost five ten 0:10:09.920 --> 0:10:12.200 on All Street time for the Bloomberg Sports Update. Good morning, 0:10:12.280 --> 0:10:14.319 John Stanho Alright, good morning. They think a couple of 0:10:14.440 --> 0:10:17.560 Yankees sluggers have been quiet heating up, so the Yankees 0:10:17.600 --> 0:10:20.360 there fifth in the row five two over Baltimore Stadium. 0:10:20.400 --> 0:10:23.280 Joey Gallo, no home runs in his first fourteen games, 0:10:23.280 --> 0:10:25.600 now two and two nights, and Giant Carlos Stanton, with 0:10:25.640 --> 0:10:28.400 his first home run since the second game of the season, 0:10:28.400 --> 0:10:31.280 finally gets to three hundred and fifty career home runs. 0:10:31.280 --> 0:10:34.240 Only six players that have ever gotten there faster. Yanks 0:10:34.280 --> 0:10:36.600 go for the sweep this afternoon. Mets failed to get 0:10:36.640 --> 0:10:38.600 to sweep in St. Louis. Had a four one lead 0:10:38.640 --> 0:10:41.440 early on, but the Cardinals erupted and one ten to five. 0:10:41.520 --> 0:10:44.920 Nolan Eronado erupted in the eighth inning. Did not appreciate 0:10:45.360 --> 0:10:48.520 Joan Lopez is up and in pitch, the bench is empty, 0:10:48.600 --> 0:10:54.240 the Cardinals manager, Carlos Marmal. When you come up top 0:10:54.320 --> 0:10:59.280 like that and and jeopardize someone's career in life, yeah, 0:10:59.320 --> 0:11:02.599 I take it. And uh, I don't think anyone in 0:11:02.640 --> 0:11:06.640 the big leagues appreciates getting thrown up top. No one 0:11:06.679 --> 0:11:09.640 has every right to react the way he did and 0:11:09.800 --> 0:11:13.040 go after him, and we'll protect that. The Mets. J. D. 0:11:13.240 --> 0:11:14.760 Davis got there with a pitch of the top of 0:11:14.840 --> 0:11:16.679 the eighth was the fifth time in the series of 0:11:16.800 --> 0:11:20.280 met got hit nineteenth time this season. No other team 0:11:20.320 --> 0:11:22.200 has been hit by a pitch more than eleven times. 0:11:22.480 --> 0:11:25.000 Rangers at the Garden lost to Montreal four to three. 0:11:25.040 --> 0:11:27.719 Close out the regular season tomorrow night where Washington. That 0:11:27.760 --> 0:11:30.200 could affect whether they then played the Cats in the 0:11:30.200 --> 0:11:32.880 first round of Pittsburgh beats Columbus. Tomorrow, the Rangers will 0:11:32.880 --> 0:11:35.640 face the Penguins. The Bucks will face the Celtics in 0:11:35.720 --> 0:11:38.760 the NBA second round. Milwaukee finished off Chicago. Golden State 0:11:38.800 --> 0:11:41.640 closed at a series with Denver. NFL Draft starts tonight 0:11:41.679 --> 0:11:44.400 in Las Vegas. Like last year, Jacksonville has the first pick, 0:11:44.840 --> 0:11:48.120 Jets have the fourth and tenth picks. Giants have the 0:11:48.120 --> 0:11:51.320 fifth and set up John stash Hewn Bloomberg Sports Nathan 0:11:51.679 --> 0:11:54.720 all Right, John, thank you. SMP futures up seventy two points, 0:11:54.760 --> 0:11:58.040 staff futures up three hundred seventy NASTAC futures higher by 0:11:58.120 --> 0:12:01.040 three hundred one points or two and a third percent. 0:12:01.559 --> 0:12:08.599 You're listening to Bloomberg Daybreak. Bloomberg Daybreak brought to you 0:12:08.640 --> 0:12:10.559 by the New York Community Trust. Jour name Will live 0:12:10.559 --> 0:12:12.440 on as a champion of the causes you care about 0:12:12.480 --> 0:12:14.559 for years to come through a charitable bequest to the 0:12:14.600 --> 0:12:17.800 New York Community Trust. Learn more at Philanthropists dot n 0:12:17.960 --> 0:12:24.880 y C. Markets headlines and breaking news twenty four hours 0:12:24.880 --> 0:12:27.839 a day at Bloomberg dot com, the Bloomberg Business at 0:12:27.960 --> 0:12:36.880 and at Bloomberg Quicktape. This is a Bloomberg Business flash 0:12:37.480 --> 0:12:40.520 and I'm Cara at Moscow. European stocks rallying along with 0:12:40.640 --> 0:12:43.959 US stock index futures after upbeed earning strengthen the bull 0:12:44.000 --> 0:12:47.200 gage for the economy and markets contracts on the tech 0:12:47.240 --> 0:12:50.920 heavy NASDACK jumping more than two percent, paced by gains 0:12:50.960 --> 0:12:54.400 and meta platforms, just after Facebook's main social network added 0:12:54.400 --> 0:12:58.200 more users than projected. Facebook shares are up about sevent 0:12:58.880 --> 0:13:01.920 in early trading. Yes p futures they're up seventy points 0:13:02.000 --> 0:13:04.440 down Future is up three hundred fifty five and nastack 0:13:04.480 --> 0:13:07.200 Future is up two hundred ninety four. Again, that's up 0:13:07.200 --> 0:13:09.560 to and a quarter percent. The decks in Germany's up 0:13:09.559 --> 0:13:12.320 one point nine percent. Ten year treasury of three thirty 0:13:12.400 --> 0:13:14.640 seconds yield two point eight two percent, a yield on 0:13:14.679 --> 0:13:17.640 the two year two point five eight percent, nine make screwed. 0:13:17.679 --> 0:13:19.800 Oil is up half percent, or forty eight cents at 0:13:19.800 --> 0:13:22.760 a hundred two dollars. Forty nine cents of barrel comes gold. 0:13:22.760 --> 0:13:26.000 Little change in eighteen eighty seven. Sixty announced the euro 0:13:26.120 --> 0:13:29.360 one point zero five to four against the dollar, British 0:13:29.360 --> 0:13:31.440 bound one point to five three two, and the yen 0:13:31.559 --> 0:13:34.520 is at one thirty point nine four. Bitcoin this morning 0:13:34.559 --> 0:13:37.160 up one point seven percent at thirty nine thousand, seven 0:13:37.240 --> 0:13:40.360 hundred fifty dollars. That's a Bloomberg business flash. Now here's 0:13:40.400 --> 0:13:43.240 Michael Barr with more on what's going on around the world. Muchael, 0:13:43.280 --> 0:13:46.199 Good morning, Good morning, Karen. President Joe Biden plans to 0:13:46.320 --> 0:13:50.640 deliver remarks today on support for Ukraine. His administration looks 0:13:50.679 --> 0:13:53.439 too soon send the Congress a proposal for weapons and 0:13:53.559 --> 0:13:58.160 umnitarian assistance for Key that would last through September. Dr 0:13:58.240 --> 0:14:01.520 Anthony Falci is clarifying com n team made suggesting that 0:14:01.640 --> 0:14:05.000 the COVID nineteen pandemic is over in the US. Punty 0:14:05.080 --> 0:14:07.440 now says the pandemic is not over, but in a 0:14:07.480 --> 0:14:11.719 different phase. Round one of the NFL draft begins to night. 0:14:11.800 --> 0:14:15.000 The Jaguars have the overall number one pick. The Jets 0:14:15.200 --> 0:14:18.120 have the fourth and tenth pick, the Giant select fifth 0:14:18.120 --> 0:14:21.560 and seventh. In the NBA Playoffs, the Warriors advanced to 0:14:21.640 --> 0:14:25.240 the next round after beating the Nuggets in Game five one. 0:14:25.800 --> 0:14:28.760 In baseball, the Yankees beat the Orioles five to The 0:14:28.800 --> 0:14:31.600 Medicine Nationals lost the Red Sox one. The A shut 0:14:31.600 --> 0:14:34.640 out the Giants one zip. In the NHL, the Rangers lost. 0:14:34.880 --> 0:14:37.680 Global News twenty four hours a day on air and 0:14:37.920 --> 0:14:41.360 on Bloomberg Quicktake, powered by more than twenty seven hundred 0:14:41.400 --> 0:14:44.000 journalists and analysts more than a hundred twenty countries. I'm 0:14:44.000 --> 0:14:46.680 Michael Barr. This is Bloomberg Naked, all right, Michael. Thanks, 0:14:46.680 --> 0:14:49.080 It's five nineteen on Wall Street Life from the Bloomberg 0:14:49.120 --> 0:14:52.640 interractor broker's studios. This is Bloomberg Daybreak. I'll go ahead 0:14:52.680 --> 0:14:55.200 and go there. There is a lot for investors in 0:14:55.360 --> 0:14:59.680 Facebook parent meta too, like the shares are surging, with 0:14:59.760 --> 0:15:02.040 the social media giant reporting a return to use their 0:15:02.040 --> 0:15:06.080 growth after last quarters first ever loss in that category. 0:15:06.240 --> 0:15:08.400 Let's turn out a man Deep seeing get more on 0:15:08.440 --> 0:15:11.960 these earnings. Senior tech analyst at Bloomberg Intelligence, Man Deep, 0:15:11.960 --> 0:15:14.520 good morning. So can we say then that the user 0:15:14.680 --> 0:15:19.680 dropped in the previous quarter was a fluke, well not necessarily, 0:15:19.840 --> 0:15:24.000 I think the expectations going into the quarter or dire. 0:15:24.280 --> 0:15:27.120 The sentiment was really negative and so what they did 0:15:27.240 --> 0:15:30.400 was really didn't come out with any further bad news 0:15:30.960 --> 0:15:33.680 as well as they said they're going to curtail their 0:15:33.720 --> 0:15:37.920 expense growth around metal wors, so net net revenue growth 0:15:38.000 --> 0:15:40.920 both slow and nothing has changed on that point. It's 0:15:41.000 --> 0:15:44.520 just the expense growth won't ramp up as fast as 0:15:44.560 --> 0:15:47.520 they laid out the last timber on. We were certainly though, 0:15:47.760 --> 0:15:53.080 seeing investors really piling into this stock this morning. What 0:15:53.160 --> 0:15:56.080 do you think is behind the move that we're seeing 0:15:56.120 --> 0:16:00.440 for the shares? Well, so you look advertise, I think 0:16:00.720 --> 0:16:03.920 is a large trillion dollar plus market and it continues 0:16:03.960 --> 0:16:07.480 to be a duopoly with Alphabet and Meta being the 0:16:07.560 --> 0:16:11.040 true top players. And at the scale that Meta is 0:16:11.080 --> 0:16:15.120 at at, even if there is a deceleration in top 0:16:15.200 --> 0:16:19.400 line growth, this company still has over thirty operating margins. 0:16:19.480 --> 0:16:22.360 And if they are telling us that, you know, costs 0:16:22.360 --> 0:16:25.120 won't go up the same way as it did last quarter, 0:16:25.200 --> 0:16:28.760 you know, costs were up whereas revenue was up seven 0:16:29.600 --> 0:16:33.400 but going forward it will probably the cost night of 0:16:33.400 --> 0:16:36.320 the equation will look much better. I think that is 0:16:36.320 --> 0:16:38.760 what is pacifying the investor. And as I said, the 0:16:38.840 --> 0:16:42.440 multiples had compressed to a point where they were pricing 0:16:42.520 --> 0:16:46.240 in a worst case scenarios. Obviously that won't play out. 0:16:46.560 --> 0:16:48.680 Do you buy that cost story though? Man Deep, but 0:16:48.840 --> 0:16:51.880 the I mean certainly. Mark Zuckerberg has been talking about 0:16:51.880 --> 0:16:53.920 spending quite a lot of money on the meta side 0:16:54.320 --> 0:16:59.320 of meta platforms, and inflation still out there. We also 0:16:59.480 --> 0:17:05.040 inflat ship doesn't impact Facebook's operations as much as it 0:17:05.160 --> 0:17:09.120 does other companies. Yes, other companies will pull back on advertising, 0:17:09.160 --> 0:17:13.280 but eventually the ad spending will go up if we 0:17:13.320 --> 0:17:15.920 are not going into a recession. So the top line 0:17:15.960 --> 0:17:19.080 book come back. And on the cost side, look, metal 0:17:19.119 --> 0:17:23.280 worse was a big thing for Facebook CEO last quarter. 0:17:23.480 --> 0:17:27.280 This time around, the tone had changed considerably. Now it 0:17:27.480 --> 0:17:29.960 was more about, okay, this is something for their ads. 0:17:29.960 --> 0:17:34.120 Will continue to invest, but we will invest in line with, 0:17:34.320 --> 0:17:37.560 you know, the expectations of the market around metal works 0:17:37.640 --> 0:17:40.119 and not be as aggressive as they laid out the 0:17:40.200 --> 0:17:43.600 last time around. So definitely a big change in tune 0:17:43.640 --> 0:17:45.879 in terms of the spending on the metal works. So 0:17:46.119 --> 0:17:49.040 does that change in Toneman deep point to more of 0:17:49.080 --> 0:17:53.280 a focus than on competition on the social media side. 0:17:53.320 --> 0:17:58.320 It is pretty pitched competition for uh, not just you know, Twitter, 0:17:58.480 --> 0:18:01.440 some of the like see if you can call them 0:18:01.440 --> 0:18:05.880 that social media platforms, but of course TikTok absolutely, So 0:18:05.960 --> 0:18:10.639 what they're doing now is really pivoting aggressively to you know, 0:18:10.720 --> 0:18:15.480 match TikTok's algorithm, the AI based approach that TikTok has taken, 0:18:15.520 --> 0:18:18.280 and so Facebook is doing the same. And the risk 0:18:18.400 --> 0:18:23.200 over there is Facebook's core kind of mode is around 0:18:23.240 --> 0:18:27.120 their social graphs, so now that they're making this pivot 0:18:27.200 --> 0:18:31.320 to AI based recommendation, they lose that advantage. At the 0:18:31.400 --> 0:18:34.600 same time, Facebook is kind of throwing a lot of 0:18:34.680 --> 0:18:38.520 resources to catch up to TikTok and YouTube, and I 0:18:38.560 --> 0:18:43.200 do think because of facebooks or meta scale in this business, 0:18:43.640 --> 0:18:46.760 they still have that advertiser base that will trust them 0:18:46.800 --> 0:18:49.320 to you know, improve the r o I on ad 0:18:49.320 --> 0:18:52.240 spending just about thirty seconds left here, Mande. But just 0:18:52.280 --> 0:18:55.320 out of curiosity, do you see any impact for Facebook 0:18:56.240 --> 0:19:00.760 elon Musk's takeover of Twitter. No. I think twitdle was 0:19:00.800 --> 0:19:03.440 too small of a player in the ad space, so 0:19:03.600 --> 0:19:06.720 it doesn't have uh that kind of daring on the 0:19:06.800 --> 0:19:09.400 digital ad space. But at the same time, I think 0:19:09.480 --> 0:19:12.600 that was probably a bottom in terms of evaluation in 0:19:12.640 --> 0:19:15.920 the digital ad space. Thanks for this, mandep great having 0:19:15.960 --> 0:19:18.480 you on this morning. Thanks for getting up early. Really appreciated. 0:19:18.800 --> 0:19:22.439 Man Deep Saying, senior tech analyst at Bloomberg Intelligence with 0:19:22.520 --> 0:19:24.760 us this morning. As we continue to watch shares of 0:19:24.800 --> 0:19:27.959 Facebook in the pre market after the positive earnings result, 0:19:28.400 --> 0:19:32.080 we are seeing a surge with metal platform shares up 0:19:32.160 --> 0:19:36.640 just about seventeen percent in early trading. As far as 0:19:37.160 --> 0:19:40.480 overall broader markets go, that's helping to drive a lift 0:19:40.760 --> 0:19:44.240 for futures contracts. You have SMP futures up seventy one point, 0:19:44.280 --> 0:19:47.480 staff futures up there at sixty. NAZAC Future is leading 0:19:47.480 --> 0:19:49.359 the way with a two and a third percent gain 0:19:49.480 --> 0:19:54.120 up three hundred two points, just ahead a big slowdown 0:19:54.280 --> 0:19:59.200 expected in first quarter GDP and inflations taking a hit 0:19:59.359 --> 0:20:02.080 on the how sold outlook. Top stories of the morning 0:20:02.160 --> 0:20:08.560 just ahead on Bloomberg day Break, Bloomberg eleven three oh 0:20:08.560 --> 0:20:10.879 weather varying amounts of clouds and sun breezy today with 0:20:10.920 --> 0:20:12.960 high sneer fifty five degrees. We could get up to 0:20:13.000 --> 0:20:16.399 around sixty with sunshine and a breeze tomorrow, mostly sunny, 0:20:16.440 --> 0:20:19.680 low sixties for Saturday. Right now forty one in Central Park, 0:20:22.200 --> 0:20:26.720 broadcasting live from the Bloomberg Interactive Broker Studio in New York. 0:20:26.840 --> 0:20:30.680 Bloomberg E Looving Freedom to Washington, d C, Bloomberg On 0:20:30.920 --> 0:20:34.160 to Boston, Bloomberg one, O six one does San Francisco 0:20:34.240 --> 0:20:37.440 Bloomberg and I'm sixteen to the country, Sirius XM CHO 0:20:37.520 --> 0:20:40.840 one nineteen and around the globe the Bloomberg Business and 0:20:40.920 --> 0:20:50.400 Bloomberg Radio dot Com. This is Bloomberg daybreak. Man, It's 0:20:50.440 --> 0:20:52.760 five thirty on Wall Street. Good morning, I'm Nathan Hager 0:20:53.000 --> 0:20:55.560 and I'm camerin Moscow. We are just about four hours 0:20:55.600 --> 0:20:57.720 away from the open of US trading. Let's get you 0:20:57.760 --> 0:20:59.199 up to date on the news you need to know 0:20:59.240 --> 0:21:02.280 at this hour. Meta shares are up almost seventeen percent 0:21:02.400 --> 0:21:06.200 this morning. That's after earning showed Facebook adding more users 0:21:06.200 --> 0:21:09.760 than projected. Man Deep sing as senior technology analyst at 0:21:09.760 --> 0:21:13.280 Bloomberg Intelligence, and he says the overall report is strong 0:21:13.480 --> 0:21:16.760 despite missing revenue estimates. Last time. They give us a 0:21:16.800 --> 0:21:19.840 surprise that they're spending an additional you know, twenty billion 0:21:19.880 --> 0:21:22.440 dollars on this Reality Labs. That's the first time we 0:21:22.600 --> 0:21:25.320 learned about those numbers this time around. There saying they 0:21:25.359 --> 0:21:27.920 don't plan to increase it, but they plan to pair 0:21:28.040 --> 0:21:31.119 back a little bit. And the core Facebook and Instagram 0:21:31.160 --> 0:21:34.919 engagement seems to be holding up quite well. Bloomberg Intelligence 0:21:34.960 --> 0:21:38.119 analyst man Deep Singh says Facebook added more than thirty 0:21:38.160 --> 0:21:41.320 million new users in the quarter, and big tech earnings 0:21:41.320 --> 0:21:44.880 continue today. Karen with Amazon and Apple reporting after the bell. 0:21:44.920 --> 0:21:49.000 Bloomberg Intelligence says Amazon sales may slow and Apple's growth 0:21:49.040 --> 0:21:51.399 could be down compared to last year. Well. Turning to 0:21:51.440 --> 0:21:53.760 the economy, Nathan, we get a reading on growth today. 0:21:53.960 --> 0:21:56.680 Us GDP is expected to show a one person game 0:21:56.760 --> 0:21:59.480 when the figures are released this morning, and according to 0:21:59.520 --> 0:22:03.840 new finding, scaring higher inflation is affecting many Americans financial outlook. 0:22:03.920 --> 0:22:05.960 Let's get the latest on that live from Bloomberg's You 0:22:06.000 --> 0:22:07.919 Need a Young Good morning, Grina, Good morning Nathan. A 0:22:07.960 --> 0:22:11.000 gallop pole shows less than half of Americans rate their 0:22:11.040 --> 0:22:14.960 financial situation as good or excellent, and some forty eight 0:22:15.000 --> 0:22:18.520 percent say it's worsening. That's similar to levels seen a 0:22:18.600 --> 0:22:21.600 month into the pandemic and during the financial crisis of 0:22:21.640 --> 0:22:24.840