WEBVTT - Bloomberg Daybreak: May 13, 2022 - Hour 2 (Radio) 0:00:01.040 --> 0:00:04.840 Life from the Bloomberg Interacted Berger Studios is Bloomberg Daybreak 0:00:04.880 --> 0:00:08.160 for a Friday, May thirteen two coming up this hour. 0:00:08.520 --> 0:00:11.719 Stocks rise after the SMP five hundred heaters on bear 0:00:11.800 --> 0:00:14.760 Market Territory. J. Powell says the FED will likely raise 0:00:14.880 --> 0:00:17.000 rates by a half point at each of its next 0:00:17.079 --> 0:00:20.960 two meetings. The panic in the crypto market subsides and 0:00:21.079 --> 0:00:23.119 we'll tell you why U s A do you pray? 0:00:23.320 --> 0:00:26.319 Is on hold power bills and New York households face 0:00:26.400 --> 0:00:29.680 a big summer spike because of gas prices. Plus a 0:00:29.760 --> 0:00:33.360 dire warning from the New White Houscope nineteen coordinator Michael 0:00:33.400 --> 0:00:36.040 barn Or a half. I'm John stash Own Sports. The 0:00:36.159 --> 0:00:38.680 Yankees erupted late. They win in Chicago, the Mets one 0:00:38.680 --> 0:00:41.520 in Washington. The Rangers and Penguins play games six tonight 0:00:41.560 --> 0:00:46.960 in Pittsburgh. That's all s train ahead on Bloomberg Daybreak 0:00:47.320 --> 0:00:51.000 on Bloomberg Eliving Free on New York, Bloomberg nine one, 0:00:51.120 --> 0:00:55.080 Washington d C, Bloomberg one oh six one, Boston, Bloomberg 0:00:55.160 --> 0:00:59.240 nine sixties and Francisco Syrius x M one nineteen and 0:00:59.320 --> 0:01:02.040 around the world Old on Bloomberg Radio dot Com and 0:01:02.440 --> 0:01:09.160 the Bloomberg Business app. Good morning. I'm Nathan Hagar and 0:01:09.200 --> 0:01:12.240 I'm Karen Moscow. US stock index futures are higher this 0:01:12.319 --> 0:01:15.440 morning after some wild swings on Wall Street yesterday. We're 0:01:15.480 --> 0:01:17.240 coming up to six one on Wall Street. We check 0:01:17.280 --> 0:01:20.560 the markets every fifteen minutes throughout the trading day. On Bloomberg. 0:01:20.560 --> 0:01:23.160 Guess in Key Future is up thirty eight points this morning. 0:01:23.400 --> 0:01:25.960 Down futures have two D two and noasday futures have 0:01:26.080 --> 0:01:29.360 one eighty nine. Can your treasury down twelve thirty seconds 0:01:29.440 --> 0:01:31.760 yield two point eight to nine percent, and they yield 0:01:31.800 --> 0:01:35.160 on the two year two point five eight percent. Nathan, Karen, 0:01:35.200 --> 0:01:37.800 we begin this morning with breaking news on Twitter. Out 0:01:37.840 --> 0:01:41.000 just moments ago. Elon Musk is casting doubt on his 0:01:41.120 --> 0:01:44.040 deal to buy the social media company. Bloomberg's Rinda Young 0:01:44.120 --> 0:01:46.600 joins US Live with this breaking news. Good morning, Na, 0:01:46.640 --> 0:01:49.080 Good morning, Nathan. Elon Musk says his deal to buy 0:01:49.080 --> 0:01:53.320 Twitter is temporarily on hold. Musk maybe announcement where else 0:01:53.560 --> 0:01:56.960 On Twitter. He says the forty four billion dollar purchases 0:01:57.040 --> 0:01:59.960 on whole pending details on how many fake accounts may 0:02:00.040 --> 0:02:03.720 cup Twitter's total users. He's questioning whether spam and fink 0:02:03.760 --> 0:02:07.800 accounts represent less than five percent of users now. Traders 0:02:07.840 --> 0:02:10.520 had started to question Musk's bid for Twitter in recent 0:02:10.639 --> 0:02:13.840 days as shares traded below his offer price of fifty 0:02:13.840 --> 0:02:16.960 four dollars and twenty cents, and right now they're down 0:02:17.040 --> 0:02:20.919 more than in the pre market, trading around thirty three 0:02:20.919 --> 0:02:23.640 dollars a year. Live in New York, I'm gonna need 0:02:23.680 --> 0:02:26.359 a young Bloomberg day break and we're watching it even extend. 0:02:26.400 --> 0:02:28.440 It's the clients re need and now downe about twenty 0:02:28.520 --> 0:02:31.440 five percent for Twitter. Tesla shares are up about six 0:02:31.520 --> 0:02:33.799 percent right now. Thank you for that report, and we 0:02:33.880 --> 0:02:36.240 continue to keep an eye on Twitter shares throughout the 0:02:36.240 --> 0:02:40.000 morning here on Bloomberg Radio, along with whatever else comes 0:02:40.000 --> 0:02:43.919 out of this developing story. Meantime, SMP futures are on 0:02:43.960 --> 0:02:45.760 the rise. As we said, as we close out of 0:02:45.840 --> 0:02:49.280 volatile trading week. Yesterday, the SNP five hundred came within 0:02:49.360 --> 0:02:52.320 spitting distance of a twenty percent drop before a late 0:02:52.400 --> 0:02:56.120 day rally paired those losses. Chris Zacarelli, the chief investment 0:02:56.160 --> 0:02:59.320 officer for Independent advisor Allion, says this is shaping up 0:02:59.320 --> 0:03:02.040 to be a turbulent year. We think this entire year 0:03:02.080 --> 0:03:05.200 will probably be full of volatility because ultimately the volatility 0:03:05.200 --> 0:03:10.200 is being caused by uncertainty around inflation, uncertainty around that policy, 0:03:10.320 --> 0:03:12.920 and then ultimately uncertainty about growth. And we don't think 0:03:12.960 --> 0:03:15.160 any of those things will resolve in the near term, 0:03:15.320 --> 0:03:18.640 so there's gonna be volatility. And Chris Nacarelli with independent 0:03:18.680 --> 0:03:21.720 advisor Alliance, made the comments on Bloomberg Business Week Catch 0:03:21.760 --> 0:03:24.440 the program weekdays from two to five pm Wall Street 0:03:24.440 --> 0:03:28.120 Time on Bloomberg Radio. Well adding to this morning's stabilization 0:03:28.200 --> 0:03:31.280 for the broader market, Karen J. Powell, pushing back against 0:03:31.280 --> 0:03:35.040 speculation on steeper interest rate hikes, share pal one Senate 0:03:35.080 --> 0:03:38.200 confirmation yesterday for a second term, and reaffirmed the Fed 0:03:38.280 --> 0:03:40.520 is likely to raise rates by a half percentage point 0:03:40.520 --> 0:03:42.440 in each of its next two meetings. We get more 0:03:42.480 --> 0:03:45.640 from Bloombridge Charlie Pellett. Powell says the Central Bank is 0:03:45.680 --> 0:03:49.480 prepared to change course depending on incoming data. Asked in 0:03:49.520 --> 0:03:52.920 an interview with the Marketplace Public Radio program if he 0:03:53.000 --> 0:03:56.560 had taken a larger seventy five basis point increase off 0:03:56.600 --> 0:03:59.360 the table, Powell said that while the FED was not 0:03:59.600 --> 0:04:03.760 actively considering such a move. If the economy performs about 0:04:03.840 --> 0:04:06.560 as expected, that it would be appropriate for there to 0:04:06.600 --> 0:04:10.480 be additional fifty basis point increases at the next two 0:04:10.480 --> 0:04:14.680 meetings in New York. Charlie Pellet Bloomberg Daybreak, All right, Charlie, 0:04:14.720 --> 0:04:17.760 thank you. San Francisco FED president Mary Daney is also 0:04:17.880 --> 0:04:20.880 backing fifty basis point rate hikes at each of the 0:04:20.920 --> 0:04:23.880 next two meetings, and an interview with Bloomberg News Daily 0:04:23.920 --> 0:04:26.839 said rates should rise to neutral by the end of 0:04:26.839 --> 0:04:29.400 the year. She sees that benchmark around two and a 0:04:29.400 --> 0:04:32.240 half percent. Well Stabler Market Karen means the sell off 0:04:32.240 --> 0:04:35.840 in cryptocurrency seems to have subsided. Bitcoins trading back above 0:04:35.880 --> 0:04:38.520 it's key thirty thousand level this morning after falling to 0:04:38.560 --> 0:04:42.480 nearly twenty five thousand Wednesday. Tether, the largest stable coin 0:04:42.640 --> 0:04:46.040 used in crypto markets to facilitate trading, is also recovering 0:04:46.040 --> 0:04:48.839 from an earlier mini crash. Major cryptos were falling with 0:04:48.920 --> 0:04:51.960 regular market sentiment, but the implosion of the terra USD 0:04:52.160 --> 0:04:55.720 stable coin kindled widespread panic. Well Nathan Shares a robin 0:04:55.720 --> 0:04:58.240 Hood also on the move. This stock, which has been battered, 0:04:58.279 --> 0:05:02.360 is up more than or Le trading cryptocurrency billionaire Sam 0:05:02.400 --> 0:05:05.600 Bankman Freed has taken a seven point six percent stake 0:05:05.640 --> 0:05:08.760 in the troubled online brokerage robin Hood shares a plunge 0:05:08.880 --> 0:05:12.400 seventy seven per cent since it's hotly anticipated initial public 0:05:12.440 --> 0:05:15.839 offering last July. In other corporate news, Apples taking aim 0:05:15.839 --> 0:05:18.880 at unionization efforts in its US retail stores. The companies 0:05:18.920 --> 0:05:22.160 holding meetings with employees posting notices that have the benefits 0:05:22.160 --> 0:05:25.599 of working for Apple. So far, no Apple store has unionized, 0:05:25.600 --> 0:05:28.960 but multiple locations are working with labor groups. Well, we 0:05:29.000 --> 0:05:31.720 now turned the latest developments involving the war in Europe. 0:05:31.920 --> 0:05:34.680 USA d Ukraine is on hold after one senator held 0:05:34.720 --> 0:05:37.360 up yesterday's vote on a forty billion dollar aid package, 0:05:37.400 --> 0:05:41.440 and Bloomberg's Amy Morris reports from our newsroom in Washington. 0:05:41.960 --> 0:05:44.640 Republican Senator Ran Paul held up the vote because he 0:05:44.640 --> 0:05:46.880 says the US is spending a lot of money in 0:05:47.000 --> 0:05:49.560 Ukraine and someone should be keeping track of it. Our 0:05:49.640 --> 0:05:52.680 total age in Ukraine will almost equal the entire military 0:05:52.720 --> 0:05:55.279 budget of Russia. And it's not as if we have 0:05:55.360 --> 0:05:57.280 that money lying around. We will have to borrow that 0:05:57.320 --> 0:05:59.359 money from China. So now the bill won't make it 0:05:59.400 --> 0:06:02.400 at the President's desk until next week. Meanwhile, White House 0:06:02.400 --> 0:06:05.680 Cyber Director Chris Ingliss says he expects Russia's use of 0:06:05.720 --> 0:06:09.240 cyber attacks to continue, telling Bloomberg TV he credits the 0:06:09.320 --> 0:06:12.120 Ukrainians for their effective defense. I than the Russians have 0:06:12.200 --> 0:06:14.560 shown that they are not perhaps as competent as they 0:06:14.640 --> 0:06:17.120 might have imagined, both in the physical world and the CyberWorld. 0:06:17.160 --> 0:06:20.360 And the National Security Agency told Bloomberg News it's investigating 0:06:20.400 --> 0:06:23.240 the use in the US business community of cyber security 0:06:23.279 --> 0:06:27.080 software made by Caspersity, a Russian vendor in Washington. I'm 0:06:27.120 --> 0:06:31.080 Amy Morris, Bloomberg Daybreak, Thank you. A House committee investigating 0:06:31.120 --> 0:06:34.520 the January six insurrection attempt has indeed disappoint at House 0:06:34.560 --> 0:06:37.480 GOP leader Kevin McCarthy, and that's along with four other 0:06:37.520 --> 0:06:41.240 Republican lawmakers and Bloomberg's and Baxter has the story. The 0:06:41.240 --> 0:06:44.240 committee has been trying to bring them into talk voluntarily, 0:06:44.320 --> 0:06:47.680 but now Republican House Member Liz Cheney says timing has 0:06:47.720 --> 0:06:50.920 become just too important. It's a reflection of how important 0:06:50.960 --> 0:06:54.200 and serious the investigation is uh and how grave the 0:06:54.200 --> 0:06:56.240 attack on the Capitol. So there are certain to be 0:06:56.279 --> 0:07:00.400 extended court battles, potentially pushing any testimony beyond the mid 0:07:00.480 --> 0:07:03.720 term election, and if the Republicans take control of the House, 0:07:03.800 --> 0:07:07.360 then it may never happen. In San Francisco, I'm at 0:07:07.360 --> 0:07:10.239 Baxter Bloomberg, Gay break all right at thanks SMP futures 0:07:10.280 --> 0:07:12.640 up thirty eight points down down, futures have tuned three, 0:07:12.720 --> 0:07:15.320 NASTAC futures up a hundred eighty nine. Straight ahead, your 0:07:15.360 --> 0:07:19.440 latest local headlines plus the check of sports. This is Bloomberg. 0:07:22.960 --> 0:07:25.360 It sounds six o seven on Wall Street. Word fifty 0:07:25.400 --> 0:07:27.960 eight degrees in Central Park. We've got an accent or 0:07:28.120 --> 0:07:30.600 heavy volume on the southbound Harlem River Drive from A 0:07:30.880 --> 0:07:33.360 D five to the FDR. More coming up in traffic. 0:07:33.400 --> 0:07:35.480 First Michael bar with more on what's going on in 0:07:35.520 --> 0:07:38.239 New York and around the world. Michael, thank you very much. Nathan. 0:07:38.280 --> 0:07:41.040 More than seven a gas stations in New Jersey are 0:07:41.120 --> 0:07:43.760 offering lower prices today as part of an effort to 0:07:43.880 --> 0:07:46.960 educate people about what might happen if self served gas 0:07:46.960 --> 0:07:50.600 pumps are allowed in the state. Bill has been introduced 0:07:50.600 --> 0:07:53.720 in the state legislature calling for self service at stations 0:07:53.760 --> 0:07:57.480 with more than four pumps as gas prices rise because 0:07:57.480 --> 0:08:01.600 of inflation and the war in Ukraine. Advocacy group Fuel 0:08:01.760 --> 0:08:04.680 Your Way in Jay said today Self Served Day of 0:08:04.720 --> 0:08:08.360 a Wilderness aims to let drivers know that self serve 0:08:08.680 --> 0:08:11.600 could help them save between one hundred to four hundred 0:08:11.600 --> 0:08:14.800 dollars per year. What do New Jersey drivers think about 0:08:14.800 --> 0:08:18.200 self serve? Phillips? It's a made you cover because you 0:08:18.200 --> 0:08:20.480 don't have to deal with the elements. The elements are 0:08:20.520 --> 0:08:23.200 the wars. It's better and safer if they come to 0:08:23.280 --> 0:08:28.440 you and us. New Jersey is one of two states 0:08:28.480 --> 0:08:30.920 that does not allow any one other than gas station 0:08:30.960 --> 0:08:35.040 attendance to pump gas. New York households power bills or 0:08:35.080 --> 0:08:38.400 boys to surge twelve percent this summer amid higher electrical 0:08:38.400 --> 0:08:41.920 demand and soaring natural gas prices, according to the State 0:08:41.960 --> 0:08:45.199 Public Service Commission, That would exceed the eleven percent increases 0:08:45.520 --> 0:08:48.520 of the two previous summers. The new White House COVID 0:08:48.600 --> 0:08:51.640 nineteen coordinator is issuing a dire warning the US will 0:08:51.679 --> 0:08:55.040 be increasingly vulnerable to the coronavirus this fall and winter 0:08:55.520 --> 0:08:58.319 if Congress does not swiftly approve new funding for more 0:08:58.400 --> 0:09:03.000 vaccines and treatments. Dr Ashi's Jah says that americans immune 0:09:03.040 --> 0:09:06.280 protection from the virus is waning, the virus is adapting 0:09:06.360 --> 0:09:09.679 to be more contagious, and booster doses for most people 0:09:09.720 --> 0:09:12.520 will be necessary. When I think out to the future 0:09:12.800 --> 0:09:15.559 the rest of the country as his virus spreads, there 0:09:15.559 --> 0:09:17.480 are places in the country that I have far lower 0:09:17.559 --> 0:09:19.960 levels of vaccination and worry about what's going to happen there. 0:09:20.120 --> 0:09:22.920 Dr is she's job. President Biden sent a letter to 0:09:22.920 --> 0:09:25.600 the Federal Trade Commission asking the agency to look into 0:09:25.640 --> 0:09:28.760 cases of price gouging as there's a national shortage of 0:09:28.840 --> 0:09:32.480 baby formula. The supply disruptions are due in large part 0:09:32.520 --> 0:09:36.160 to a February recall of some popular brands. New York 0:09:36.200 --> 0:09:40.520 Republican LC Stefanik is among members of Congress criticizing the 0:09:40.520 --> 0:09:43.360 Biden administration's handling of the crisis. This is not a 0:09:43.400 --> 0:09:45.920 third world country. This should never happen in the United 0:09:45.920 --> 0:09:49.400 States of America. Representative Stefanik as the f d A 0:09:49.559 --> 0:09:53.200 is now considering loosening import restrictions. Global New whos twenty 0:09:53.200 --> 0:09:55.839 four hours a day on air and on Bloomberg Quick Take, 0:09:55.880 --> 0:09:58.880 powered by more than twenty seven hundred journalists. Analyst more 0:09:58.880 --> 0:10:02.760 than a hundred, twenty countries. Michael Barr, this is Bloomberg, Nathan. Okay, Michael, 0:10:02.800 --> 0:10:09.040 thank you. Coming up to six ten on Wall Street. 0:10:09.040 --> 0:10:12.079 Time for the Bloomberg Sports Update with John Shot. Thanks Nathan. 0:10:12.120 --> 0:10:14.720 The Yankees keep winning. The pitching nest for the most part, 0:10:14.760 --> 0:10:17.240 carried them. The last night. The pitching wasn't great. The 0:10:17.400 --> 0:10:20.400 hitting was a fifteen to seven win over the White 0:10:20.400 --> 0:10:23.200 Sox in Chicago to home run six RBIs for John 0:10:23.240 --> 0:10:26.240 Carlos Stanton, home run for Aaron Judge, he drove in four, 0:10:26.360 --> 0:10:29.440 Josh Donaldson cappy seven run eight getting with a three 0:10:29.520 --> 0:10:31.960 run shot in the Yanks have won sixteen of their 0:10:32.080 --> 0:10:34.800 last eighteen. The Mets with a four one win at Washington, 0:10:34.880 --> 0:10:38.480 So the Mets win another series. They've played ten of them, 0:10:38.480 --> 0:10:42.000 no sweeps, but they've won nine with one split at 0:10:42.040 --> 0:10:44.960 home tonight for Seattle. Rangers are in Pittsburgh tonight, Game six. 0:10:45.040 --> 0:10:48.080 It's not known if Penguin Stars Sidney Crosby will play. 0:10:48.120 --> 0:10:51.040 An upper body injury suffering game five courtesy of a 0:10:51.160 --> 0:10:54.800 high hit by Rangers defenseman Jacob Trueba. Pens coach Mike 0:10:54.880 --> 0:10:58.880 Sullivan was clearly anchored by the hit. The Ranger coaches Gerard, 0:10:58.960 --> 0:11:01.120 I don't think Bob been one dish. I mean he 0:11:01.200 --> 0:11:02.960 plays his game the way he played his game. And 0:11:03.640 --> 0:11:07.160 you know, again, true Jane hurt Sidney Clausbeer. You know 0:11:07.240 --> 0:11:10.160 that's not the goal. Our goals to play physical hockey. 0:11:10.160 --> 0:11:13.120 And it was an unfortunate play, you know, So, I mean, 0:11:13.120 --> 0:11:15.440 there's no intend to hurt anybody and go, says Sterkin 0:11:15.520 --> 0:11:18.319 back in Pittsburgh, where he struggled in games three and four. 0:11:18.360 --> 0:11:20.240 Sister Can, already a finalist to win the Vest of 0:11:20.280 --> 0:11:23.160 the Trophy for Best Goalie, also now named a finalist 0:11:23.280 --> 0:11:26.240 to win the Heart Trophies. NHL m v P three 0:11:26.240 --> 0:11:29.320 teams won to force a game seven Boston, Edmonton and 0:11:29.440 --> 0:11:31.719 Tampa Bay and won an overtime. NBA Miami want of 0:11:31.720 --> 0:11:34.559 Philadelphia to win that series. Dallas blew out Phoenix, that 0:11:34.640 --> 0:11:38.000 series going seven. NFL schedules out. The Giants will open 0:11:38.080 --> 0:11:40.559 up at Tennessee. The Jets will be home for Baltimore. 0:11:40.840 --> 0:11:43.760 Red strike off that miraculous when at the Kentucky Germany 0:11:43.840 --> 0:11:47.120 will not be in next week's prenkness. John stash Were 0:11:47.160 --> 0:11:50.440 Bloomberg Sports n all right, John, thank you, SMP futures 0:11:50.480 --> 0:11:54.040 now up thirty six point, Staff futures up, Nastact futures 0:11:54.080 --> 0:11:58.280 up a hundred seventy eight. Twitter shares tumbling, with Elon 0:11:58.400 --> 0:12:01.840 Musk saying the deal is on hold. Alex Webb of 0:12:01.880 --> 0:12:04.800 Bloomberg Opinion and Bloomberg Quicktake joins us next. This is 0:12:04.840 --> 0:12:09.480 Bloomberg Bloomberg day Break, brought to you by the Jewish 0:12:09.520 --> 0:12:11.760 Communal Fund j c F. S Downer Advised Fund is 0:12:11.760 --> 0:12:15.080 the smart choice to manager philanthropy, especially in times of crisis. 0:12:15.160 --> 0:12:17.959 Make your giving impactful. Visit j c F. N Y 0:12:18.200 --> 0:12:25.240 dot Org markets headlines and breaking news twenty four hours 0:12:25.240 --> 0:12:28.240 a day at Bloomberg dot Com, the Bloomberg Business at 0:12:28.320 --> 0:12:38.920 and at Bloomberg Quicktake. He's a Bloomberg Business Flash and 0:12:38.960 --> 0:12:42.560 I'm Karen Moscow. Twitter shares down eighteen percent this morning, 0:12:42.600 --> 0:12:44.240 and this update is brought to you by b n 0:12:44.360 --> 0:12:46.959 Y Mellon's Perishing. Learn why the world's most sophisticated wealth 0:12:47.000 --> 0:12:49.840 management and institutional firms rely on Pershing to help them 0:12:49.840 --> 0:12:53.960 improve profitability, create efficiency, attract talent, and manage risk at 0:12:54.040 --> 0:12:57.400 Pershing and dot Com again. Watching Twitter shares fall down 0:12:57.440 --> 0:13:00.240 eighteen percent in early training after Elon musk Twee that 0:13:00.280 --> 0:13:03.480 has take over at the social media company is temporarily 0:13:03.559 --> 0:13:06.439 on hold. Will have more details on this breaking story 0:13:06.520 --> 0:13:10.400 straight ahead with Alex Webb of Bloomberg. Quicktake. Futures are higher, 0:13:10.559 --> 0:13:13.200 SMP futures up about forty points down. Futures have two 0:13:13.240 --> 0:13:16.800 hundred nineteen Nastack futures have one d nine ten year 0:13:16.800 --> 0:13:19.920 treasury down fourteen thirty seconds, yield two point eight nine percent. 0:13:20.080 --> 0:13:22.480 Yield on the two year two point five eight percent. 0:13:22.840 --> 0:13:25.079 Nimex screwed oil of one of a third percent of 0:13:25.160 --> 0:13:27.400 a dollar forty three and a hundred seven dollars fifty 0:13:27.440 --> 0:13:30.520 seven cents a barrel. And we're watching bitcoin this morning. 0:13:30.520 --> 0:13:32.960 It's higher, up more than six percent at thirty thousand, 0:13:33.200 --> 0:13:35.880 three hundred dollars. That's a Bloomberg business flash. Now here's 0:13:35.920 --> 0:13:38.360 Michael bar with more on what's going on around the world. 0:13:38.440 --> 0:13:41.040 Michael Darren, thank you very much. The Kremlin has warned 0:13:41.040 --> 0:13:45.360 it would retaliate after Finland's leaders said they favored joining NATO. 0:13:45.760 --> 0:13:48.520 Sweden could do the same within days. In a historic 0:13:48.600 --> 0:13:52.760 realignment triggered by Russia's invasion of Ukraine. House Minority leader 0:13:52.840 --> 0:13:56.239 Kevin McCarthy and four other congressional Republicans have been subpoenaed 0:13:56.480 --> 0:13:59.199 by the House Januar every six committee. In baseball, the 0:13:59.280 --> 0:14:01.840 Yankees one, the Mets beat the Nationals, the Orioles and 0:14:01.920 --> 0:14:05.520 A's one. NHL Playoffs, there will be a deciding game 0:14:05.640 --> 0:14:09.199 seven after the Bruins beat the Hurricanes. Global News twenty 0:14:09.200 --> 0:14:11.719 four hours a day on air and on Bloomberg quick Take, 0:14:11.960 --> 0:14:14.600 powered by more than twenty seven hundred journalist and analysts 0:14:14.679 --> 0:14:18.360 more than twenty countries. Michael barrt this is Bloomberg, all right, Michael, 0:14:18.400 --> 0:14:20.480 thanks to his six nineteen on Wall Street Life from 0:14:20.480 --> 0:14:23.840 the Bloomberg Interactive Broker Studios. This is a Bloomberg daybreak 0:14:23.840 --> 0:14:26.280 and if you happen to have just joined us. Twitter 0:14:26.480 --> 0:14:30.760 shares are sinking this morning thanks to a tweet from 0:14:30.880 --> 0:14:34.760 its potential buyer Elon Musk. Moments ago. He tweeted that 0:14:34.800 --> 0:14:38.880 the buyout is temporarily on hold as he awaits data 0:14:39.000 --> 0:14:43.640 on Twitter's proportion of fake accounts. Let's get more now 0:14:43.680 --> 0:14:46.800 on this breaking news. Alex Webb is with us this morning. 0:14:46.800 --> 0:14:51.000 Bloomberg quick Take correspondent and tech columnist for Bloomberg Opinion. 0:14:51.120 --> 0:14:55.160 Alex good morning. What is Elon Musk up too? Ok, 0:14:55.880 --> 0:14:59.080 we don't even know that he's serious. The tweet reads 0:14:59.120 --> 0:15:02.120 Twitter day tepper on hold pending detail supporting calculation that 0:15:02.200 --> 0:15:05.000 smams slash fake accounts do indeed represent less than five 0:15:05.040 --> 0:15:06.840 c cent of users, and it links to a story 0:15:06.880 --> 0:15:09.320 with that data. Now, you know, you could read that 0:15:09.480 --> 0:15:12.560 as Elon being sarcastic. Right, Sure, the Twitter deal is 0:15:12.560 --> 0:15:14.480 off because of this new story that just came out, 0:15:15.120 --> 0:15:18.240 Like I would be tempted to interpret it that way. Now, 0:15:18.800 --> 0:15:23.320 of course, the thing that is surely undoubtable about this 0:15:23.440 --> 0:15:25.560 is that the SEC will be looking at it. Right, 0:15:25.880 --> 0:15:27.480 if the deal is off and he's announced the dealers 0:15:27.480 --> 0:15:30.000 off on Twitter, well he probably should be filing that. 0:15:30.280 --> 0:15:32.520 If the deal isn't off and he's announced he's making 0:15:32.560 --> 0:15:35.120 a comment like this flippantly on Twitter, then they should 0:15:35.120 --> 0:15:37.040 be looking at it. It's you know, it's sort of 0:15:37.400 --> 0:15:39.200 unfortunately not a surprise that this is a sort of 0:15:39.240 --> 0:15:41.800 tweets that we're saying, Well, let's just get a little 0:15:41.800 --> 0:15:46.400 bit of background here on the issue with spam but accounts. 0:15:46.720 --> 0:15:50.120 What is Elon Musk's issue here? How does this play 0:15:50.240 --> 0:15:54.880 into the Musque bid for Twitter? Well, if it's if 0:15:54.880 --> 0:15:57.240 it's serious that the dealer is off for on hold 0:15:57.280 --> 0:16:01.520 because of this audit. Um, you know, even as the 0:16:01.680 --> 0:16:04.720 one of the things he's going to do is eliminate 0:16:04.800 --> 0:16:08.760 spambots or reduce spam box at the very least. And um, 0:16:08.800 --> 0:16:10.760 you know, you do see on any number of posts, 0:16:10.800 --> 0:16:16.200 particularly crypto bots, you know, jumping onto trending topics and 0:16:16.240 --> 0:16:20.480 trying to pump up particular coins or influences. If there 0:16:20.520 --> 0:16:22.360 aren't as many spam bots as he had thought, then 0:16:22.360 --> 0:16:25.040 of course the if he thinks that is a business upside, 0:16:25.040 --> 0:16:27.640 the opportunity to get rid of these spambots. If there 0:16:27.640 --> 0:16:29.520 aren't as many as he thought, then maybe the upside 0:16:29.560 --> 0:16:31.400 isn't as great. You can also look at it differently. 0:16:31.480 --> 0:16:33.800 Does maybe there only five per cent of the accounts 0:16:33.840 --> 0:16:36.240 of spam bots, but if they are generating of the 0:16:36.280 --> 0:16:37.880 content I don't know if that's true, but I'm just 0:16:37.880 --> 0:16:41.320 working that number out the air, then it's still something 0:16:41.320 --> 0:16:43.960 worth looking at. So, you know, it's a sort of 0:16:44.200 --> 0:16:47.520 vastly convex thing, and they're also often quite hard to identify. 0:16:47.960 --> 0:16:50.800 So if there is a possibility here that Elon Musk 0:16:50.960 --> 0:16:53.600 is putting this out flippingly that this is just another 0:16:53.640 --> 0:16:57.240 Twitter joke. I mean, what does that say about his 0:16:57.720 --> 0:17:02.160 entire bid for Twitter? Mean, there's still a lot of speculation, 0:17:02.240 --> 0:17:06.480 isn't there about whether he's even serious about doing this deal, 0:17:06.560 --> 0:17:09.720 even with all the financing he's put together for this. Absolutely, 0:17:09.760 --> 0:17:11.679 and that is you know that spread, that that that 0:17:12.760 --> 0:17:15.960 uncertainty is reflected in the spread between the offer price 0:17:16.040 --> 0:17:18.760 and the stock price as it closed yesterday, even before 0:17:19.160 --> 0:17:21.879 you know this pre market drop that was seeing today 0:17:21.920 --> 0:17:25.320 the shares trading. The shares closed yesterday at forty five dollars, 0:17:25.880 --> 0:17:29.760 the offer prices fifty four dollars twenty That is a 0:17:29.840 --> 0:17:33.040 considerable difference. I think the smart money has been sin 0:17:33.119 --> 0:17:36.280 and a going that at any stage Ellen might wake 0:17:36.400 --> 0:17:37.800 up and say, do you know what, I don't want 0:17:37.840 --> 0:17:40.959 to do this deal? Uh? And so that has been 0:17:40.960 --> 0:17:43.240 priced into the share price as it stands. Yea, as 0:17:43.280 --> 0:17:45.879 we watched the Twitter shares just in the pre market 0:17:45.960 --> 0:17:50.240 test a thirty handle you mentioned the SEC here. I mean, 0:17:50.440 --> 0:17:53.000 with the Elon Musk putting this out on Twitter, it 0:17:53.040 --> 0:17:57.240 does raise the possibility of the SEC cracking down even further. 0:17:57.440 --> 0:17:59.280 On Elon Musk, what are you gonna be looking for 0:17:59.440 --> 0:18:02.320 their al It's hard to know what they can do. 0:18:02.680 --> 0:18:06.240 You know, they've already done some things at Tesla where 0:18:06.280 --> 0:18:08.239 they've said, well, you have to have someone investing your 0:18:08.240 --> 0:18:10.359 tweets as it pertains to Tesla, But of course these 0:18:10.359 --> 0:18:13.040 tweets don't pertain to Tesla, not directly. At the very least, 0:18:13.080 --> 0:18:15.600 they've placed a different chairman in for two years. Those 0:18:15.640 --> 0:18:18.320 two years are you know, running out pretty soon, so 0:18:18.680 --> 0:18:20.280 we don't know that Elan is going to take the 0:18:20.359 --> 0:18:24.120 chairmanship again. There's a suspicion that one of the reasons 0:18:24.160 --> 0:18:26.119 that Ellen was trying to buy Twitter is because he 0:18:26.119 --> 0:18:29.280 didn't want to be, in his view, censored on the platform. 0:18:29.359 --> 0:18:32.639 Doesn't want others censored either, and how a private company 0:18:32.720 --> 0:18:35.280 censors is a different question, but you know, that's one 0:18:35.320 --> 0:18:37.040 of the issues at stake here. And so if it 0:18:37.119 --> 0:18:39.639 ends up ironically with him having to reign in his 0:18:39.680 --> 0:18:42.360 tweets even further, it would just be a very strange 0:18:42.960 --> 0:18:46.560 um eventuality in our last thirty seconds here, I guess 0:18:46.600 --> 0:18:48.760 what I'm wondering, Alex is what could this mean for 0:18:48.840 --> 0:18:51.520 some of the you know, major backers that Elon Musk 0:18:51.600 --> 0:18:53.840 has put together to do this deal, like Larry Ellison, 0:18:53.840 --> 0:18:57.440 like Morgan Stanley. I think if you're Larry Ellison, maybe 0:18:57.480 --> 0:18:59.840 it doesn't change your calculation. But if you're Morgan Stanley 0:18:59.920 --> 0:19:01.600 or indeed in Apollo or any of the other sort 0:19:01.600 --> 0:19:04.639 of financial backers, you know, sort of putting your reputation 0:19:04.760 --> 0:19:07.160 and your capital at stake by getting behind this bid 0:19:07.200 --> 0:19:10.520 when it's not entirely clear what the financial upside is 0:19:10.560 --> 0:19:13.359 going to be. Uh, it does I think if you 0:19:13.400 --> 0:19:15.679 pause the thought, and I'm sure there are gonna be 0:19:15.720 --> 0:19:18.520 some some frenzied meetings and zoom calls in the course 0:19:18.560 --> 0:19:21.000 of today amongst some of those backers. All right, Alex 0:19:21.040 --> 0:19:23.399 web As always, thank you so much for coming on 0:19:23.480 --> 0:19:26.040 and giving us more on this breaking news, with Elon 0:19:26.119 --> 0:19:29.879 Musk saying the Twitter deal is temporarily on hold while 0:19:30.119 --> 0:19:34.360 he looks into calculations that Spambot's account for less than 0:19:34.400 --> 0:19:38.120 five percent of users on Twitter, and we are watching 0:19:38.320 --> 0:19:41.680 Twitter shares slide in the pre market now down about 0:19:41.800 --> 0:19:46.359 eighteen cents, trading around thirty seven dollars eighteen percent lower 0:19:46.400 --> 0:19:49.239 now in the pre market. Much more to come on 0:19:49.440 --> 0:19:52.320 Bloomberg Daybreak. Of course, we will continue following this story 0:19:52.320 --> 0:19:54.840 for you throughout the morning. As we watch futures rise. 0:19:55.119 --> 0:19:57.560 We have SMP futures of forty points, Staff futures of 0:19:57.640 --> 0:20:00.719 two twenty three. Nastack futures are higher by a hundred 0:20:00.800 --> 0:20:08.680 ninety two points. This is Bloomberg Bloomberg eleven three oh weather. 0:20:08.880 --> 0:20:11.399 A few showers possible today with a high near seventy degrees. 0:20:11.480 --> 0:20:14.800 More showers possible tomorrow as well. Low seventies might hit 0:20:14.840 --> 0:20:17.080 eighty on Sunday, and can't rule out a few more 0:20:17.119 --> 0:20:22.920 showers then. Right now fifty nine in Central Park, broadcasting 0:20:23.000 --> 0:20:26.720 live from the Bloomberg Interacted Broker Studio in New York. 0:20:26.840 --> 0:20:30.800 Bloomberg E Living Freedom to Washington, d C, Bloomberg one 0:20:30.920 --> 0:20:34.119 to Boston, Bloomberg one O six one to San Francisco, 0:20:34.200 --> 0:20:37.639 Bloomberg nine sixty to the country, Sirius XM H one 0:20:37.720 --> 0:20:40.840 nine team, and around the globe, the Bloomberg Business and 0:20:40.920 --> 0:20:50.280 Bloomberg Radio dot Com. This is Bloomberg Daybreak at six 0:20:50.359 --> 0:20:52.879 thirty on Wall Street. Good morning, I'm Nathan Hager and 0:20:52.920 --> 0:20:55.880 I'm Kared Moscow. We're just about three hours away from 0:20:55.880 --> 0:20:57.920 the open of US trading. Time for the five things 0:20:58.000 --> 0:21:00.360 you need to notice start your day. Bronti you buy 0:21:00.480 --> 0:21:04.879 Interactive Brokers. Interactive Brokers charges margin loan rate from zero 0:21:04.960 --> 0:21:07.479 point a three percent to one point three percent rate, 0:21:07.560 --> 0:21:09.560 subject to change. Learn more at I v k R 0:21:09.680 --> 0:21:13.879 dot com. Slash compare up first breaking news on Twitter, 0:21:14.000 --> 0:21:16.639 Elon Musk casting doubt on his deal to buy the 0:21:16.760 --> 0:21:20.040 social media company, and Bloomberry or Needy Young joints us 0:21:20.080 --> 0:21:23.119 live with more. We need a good morning, Good morning, Karen. 0:21:23.160 --> 0:21:26.000 Elon Musk is saying his deal to buy Twitter is 0:21:26.040 --> 0:21:30.000