Speaker 1: Live from the Bloomberg and Directed Brookers Studios. This is
Speaker 1: Bloomberg Daybreak for Friday, April two. Coming up this hour.
Speaker 1: Apple has a record quarter, but the forecast sends the
Speaker 1: stock lower. Amazon share slide is a company coast a
Speaker 1: loss on higher costs. Elon Musk unloads Tesla shares to
Speaker 1: help pay for his takeover of Twitter, and Russian missiles
Speaker 1: strike Ukraine's capital kievs New York City. De Lay's pain
Speaker 1: rules that are meant to close the gender gap. Plus
Speaker 1: the days of flavored cigarettes and cigars may be numbered.
Speaker 1: I'm Michael barr more a hand. I'm John Dash Hour
Speaker 1: and sports. The Jets and Giants with two top ten
Speaker 1: draft picks. Both went defense, then offfense the Yankees when
Speaker 1: there's sixth in their own that's all trendy. Head on
Speaker 1: Bloomberg Daybreak on Bloomberg Eliving Free on New York, Bloomberg
Speaker 1: nine one, Washington d C, Bloomberg one oh six one, Boston,
Speaker 1: Bloomberg nine sixties and Francisco Sirius XAM one nine Team
Speaker 1: and around the World Old on Bloomberg Radio dot Com
Speaker 1: and via the Bloomberg Business App. Good Friday Morning, I'm
Speaker 1: Nathan Hagar and I'm Karen Moscow. US DOT Index futures
Speaker 1: are lower this morning. We're coming up to five oh
Speaker 1: one on Wall Street, and we check the markets every
Speaker 1: fifteen minutes throughout the trading day. On Bloomberg, SNP futures
Speaker 1: down twenty three points this morning, Down futures downs eighty
Speaker 1: and NASDAD futures down one twelve. The ten year treasury
Speaker 1: down six thirty seconds. He had two point eight four percent,
Speaker 1: and they yield on the two year two point six
Speaker 1: four percent, and NIMEX screwed oil is up eight ten percent. Nathan, Karen,
Speaker 1: we begin this morning with market reaction to the latest
Speaker 1: slew of earnings. Apple shares are down more than two
Speaker 1: percent in early trading, records setting earnings are being overshadowed
Speaker 1: by the iphonemaker's forecast. Apple predicts supply constraints will cost
Speaker 1: four to eight billion dollars in revenue during the current quarter.
Speaker 1: CEO Tim Cook addressed the issue on the company's conference call.
Speaker 1: I want to acknowledge the challenges we're seeing from apply
Speaker 1: chain disruptions driven by both COVID and silicon shortages, to
Speaker 1: the devastation from the war in Ukraine. We are not
Speaker 1: immune to these challenges. Apple CEO Tim Cooke also announced
Speaker 1: ninety billion dollars in new stock buybacks. Well Shares of
Speaker 1: Amazon are down eight and a half percent this morning.
Speaker 1: Nathan the Eight Commerce Giants says it lost money during
Speaker 1: the first quarter and may see another loss in the
Speaker 1: current period. Amazon's clown Services division a w S continue
Speaker 1: to impress, but a hiring and warehouse building binge during
Speaker 1: the pandemic weight on the bottom line. Punham Goyle covers
Speaker 1: Amazon for Bloomberg Intelligence. For a long time, a WS
Speaker 1: has been able to offset the weaker retail business, but
Speaker 1: it's not enough. With growth slowing on the top line
Speaker 1: across the online business ACROST, the rising just too fast
Speaker 1: for them to herb those higher costs. Bloomberg Intelligence analysts
Speaker 1: Punham Goyle says, for the first time ever, US on
Speaker 1: recording back to back quarters of less than ten percent
Speaker 1: revenue growth. Let's check out some other stocks on the
Speaker 1: move this morning. Karen shares of Inteller down three percent.
Speaker 1: The chipmaker gave disappointing sales and profit forecasts, indicating weaker demand,
Speaker 1: and robin Hood shares are down nearly eleven percent. The
Speaker 1: financial upstart says first quarter revenue tumbled. We wrap up
Speaker 1: a busy week for earnings with big oil and focus.
Speaker 1: Nathan x on Mobile reports this morning a preview from
Speaker 1: Bloomberg's Tom Busby. After Russia's invasion of Ukraine sent crude
Speaker 1: prices surging over the past two months along with global demand,
Speaker 1: It's boom times right now for the nation's biggest oil producers,
Speaker 1: and because of that, x on Mobile is expected to
Speaker 1: post its biggest quarterly profit in more than a decade.
Speaker 1: Investors will be looking for guidance on increased crewde production
Speaker 1: and possibly more shared by backs and higher dividends. I'm
Speaker 1: Tom Busby, Bloomberg Daybreak. All right, Tom, thank you. Earning
Speaker 1: so far have not turned around market sentiment. In fact,
Speaker 1: the SMP five enters the final trading day of AP
Speaker 1: on track for the worst month since the pandemic bear market.
Speaker 1: More from Bloomberg's Charlie Pellett. The SMP is showing a
Speaker 1: month to day loss of five point four percent. By comparison,
Speaker 1: this month, Nasdaq is down nine and a half percent,
Speaker 1: while the Dow is down two point two percent. Volatility
Speaker 1: has been eight persistent feature in markets all year, with
Speaker 1: investors on edge over China's struggle to suppress COVID, Russia's
Speaker 1: war in Ukraine, and warries that central bank tightening may
Speaker 1: tip the US economy into a recession. In New York,
Speaker 1: Charlie Pellett Bloomberg Daybreak, Right, turnly, thank you Well. In Asia,
Speaker 1: it's a different story for stocks today. Chinese technology shares
Speaker 1: jumped after new policy promises from the country's top leaders
Speaker 1: to bolster the economy. And Marcus. Let's get the recap
Speaker 1: from Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, Good
Speaker 1: morning Karen. The MCI Asia Pacific Index rose for a
Speaker 1: third time this week, with ten Cent and Ali Barbara
Speaker 1: among the biggest gain is the Hank Sang Take Index,
Speaker 1: sort more than ten percent and rebounding from earlier losses
Speaker 1: as the country bound to support healthy growth of platform companies.
Speaker 1: Shortly before the measures were unveiled, Chinese tex Stalks reversed
Speaker 1: earlier losses, has tried has speculated about a possible relaxation
Speaker 1: of the yearlong regulatory clampdown, and China's You unstrengthened a
Speaker 1: little during the day's trade, but is poised for a
Speaker 1: record monthly drop as the economy suffers from lockdowns resulting
Speaker 1: from the nation's COVID zero policy. In Sydney, Juliette Sally
Speaker 1: Bloomberg Daybreak, Juliet thanks for finding out more details this
Speaker 1: morning on how Elon Musk is financing his Twitter takeover.
Speaker 1: Let's get the latest live from Bloomberg Runita Young, Good morning, Granita,
Speaker 1: Good morning. Nathan wall Street suspected Elon Musk would have
Speaker 1: to sell some stock to cover the twenty one billion
Speaker 1: dollar equity portion of his deal to buy Twitter. Now,
Speaker 1: a filing shows Musk offloaded about four billion dollars worth
Speaker 1: of Tesla stock. Shortly after those filings were made public,
Speaker 1: Musk tweeted that no further Tesla cells were planned. Meantime,
Speaker 1: Bloomberg sources say before the deal was announced, Musk floated
Speaker 1: the idea of cutting jobs at costs at Twitter. On
Speaker 1: calls with bankers. Must also discussed ideas to monetize the
Speaker 1: platform to boost cash flow, including a potential subscription service
Speaker 1: to drive recurring revenue. Live in New York, I'm goned
Speaker 1: a Young Bloomberg Daybreak. All right, we need it, thank you,
Speaker 1: But let's shift years now and get to the latest
Speaker 1: on Ukraine. Russian missile struck Kiev overnight, but the battle
Speaker 1: for don Boss is still Russia's strategic focus. Meantime, here
Speaker 1: in the US, President Biden is asking Congress for thirty
Speaker 1: three billion dollars in aid to Ukraine, but the road
Speaker 1: to approval won't be easy. Bloomberg's said Bacheter has the story.
Speaker 1: The Ukraine part has broad support across Congress, but at
Speaker 1: risks getting snarled in his ask for COVID funding and immigration.
Speaker 1: The Senate could vote on the emergency spending next week,
Speaker 1: but the House will be on recess, so Congress could
Speaker 1: finish by the week of May nine and send it
Speaker 1: to the President. But if Democrats insist on attaching long
Speaker 1: stalled funding for vaccinations and immigration costs, it could be
Speaker 1: delayed indefinitely. Eight. Biden did urge them a crash to
Speaker 1: pass them together in San Francisco. I'm at Baxter Bloomberg Daybreak.
Speaker 1: All right, thanks, SMP futures down down twenty five point,
Speaker 1: staff futures down ninety five, nastack futures lower by a
Speaker 1: hundred twelve, The ten year treasury yield to eight four.
Speaker 1: Straight ahead your latest local headlines in the check of Sports.
Speaker 1: This is Bloomberg at five oh seven on Wall Street
Speaker 1: Ward forty two degrees in Central Park. They're still picking
Speaker 1: up some roadwork overnight on the northbound Merritt Parkway between
Speaker 1: Norwalk and Westport. Just keep an eye on that. Michael
Speaker 1: Barr has more on what's going on in New York
Speaker 1: and around the world. Happy Friday, Michael, Happy Friday to you, Nathan.
Speaker 1: New York City has postponed one of the nation's most
Speaker 1: far reaching requirements for employers to tell job seekers what
Speaker 1: they can make. Such pay transparency laws aren't championed as
Speaker 1: giving applicants, particularly women and people of color, a better
Speaker 1: shot at fair pay. The law was supposed to take
Speaker 1: effect in May, but the City Council voted yesterday to
Speaker 1: delay it for five months after your employers waved red flags.
Speaker 1: The law says employers with four or more workers must
Speaker 1: include a minimum and maximum salary in any job at
Speaker 1: New York State is setting aside more than thirty one
Speaker 1: billion dollars in this year's budget for schools. Governor Kathy
Speaker 1: Oakeles has more than three hundred sixty million dollars in
Speaker 1: this fiscal year will help students and teachers and younkers
Speaker 1: bounce back from the pandemic. They have just signed a budget,
Speaker 1: supported a budget they had the highest investment and education
Speaker 1: in our state's history. Governor hokel says, every penny it
Speaker 1: is worth it. Funeral services are set for today for
Speaker 1: falling FDN wifire fighter Timothy Klein. Klein died Sunday while
Speaker 1: fighting ablaze in Brooklyn. Services will take place for the
Speaker 1: thirty one year old in Bell Harbor. Eight other firefighters
Speaker 1: were hurt in that blaze. A twenty one year old
Speaker 1: man who had autism also died in the fire. In
Speaker 1: the Southwest, thousands of firefighters have continued to slow the
Speaker 1: advance of destructive wildfires, but high winds return today that
Speaker 1: sparked the spread of the blazes a week ago. More
Speaker 1: than a hundred sixty homes have been destroyed in one
Speaker 1: rural county in northeast New Mexico. The FDA wants to
Speaker 1: ban menthol cigarettes and flavored cigars. FDA Commissioner Robert Callips
Speaker 1: says studies that show the minty taste and cooling effects
Speaker 1: of menthol and cigar flavors like strawberry and grape increase
Speaker 1: the appeal for adults and young smokers alike. I really
Speaker 1: want to emphasize this. It's not just UM we want
Speaker 1: to take away mental in cigarettes as we want to
Speaker 1: help people UM stop this uh um smoking which is
Speaker 1: causing so much stealth and disability. FDA Commissioner Callips says
Speaker 1: menthol cigarettes account for more than a third of all
Speaker 1: cigarettes sales in the US. Global News twenty four hours
Speaker 1: a day on air and on Bloomberg Quick Take, powered
Speaker 1: by more than seven hundred journalists and analysts in more
Speaker 1: than a hundred twenty reeves. I'm Michael bar this is
Speaker 1: Bloomberg Nathing. Thank you, Michael. Coming up to five ten
Speaker 1: on ball Street time for the Bloomberg Sports Updated. Morn
Speaker 1: John Sire, Good morning, Nathan. Second year in a row
Speaker 1: the NFL Draft again with Jacksonville. The Jacks took Georgia
Speaker 1: pass rush for Trayvon Walker that allowed Michigan's defensive end
Speaker 1: Aidan Hutchinson to stay home with Detroit. Houston took l
Speaker 1: s U quarterback Derek Stingley, and the Jets, picking fourth,
Speaker 1: took Cincinnati cornerback I'm odd Sauce Gardener. Not once in
Speaker 1: Gardner's college career did he allow the receiver he was
Speaker 1: defending to score a touchdown. The Giants were next. They're
Speaker 1: pick announced not Fight Commissioner Roger Gadell, but by nineteen
Speaker 1: year old New Jersey residence Sam Prince, who has a
Speaker 1: heart and lung condition as part of them make a
Speaker 1: Wish program. With the fifth pick and it's fight to
Speaker 1: NFL Draft, the New York Football Giants select Cavon Tibodel
Speaker 1: Tibido Launch, projected to be the first pick of the draft.
Speaker 1: He should help a Giants pass rush that was virtually
Speaker 1: non existing last season. They're offensive line also struggles. With
Speaker 1: two picks later, the Giants took Alabama tackle Evan Neil
Speaker 1: top ten, ended with another Jets pick, Ohio statewide out
Speaker 1: Garrett Wilson. So Zach Wilson will profasses to Garrett Wilson.
Speaker 1: Rounds two of the two and three of the draft.
Speaker 1: Tonight in Last Days White a home stand for the
Speaker 1: Yankees six games. They won them all ten five over Baltimore,
Speaker 1: three run over for Aaron Judge. Yanks were held by
Speaker 1: five Oriel airs. That's one more than the Yankees have
Speaker 1: had all season. Yanks play tonight in Kansas City NBA
Speaker 1: Playoffs three Game six is all were serious. Clinton wins
Speaker 1: on the road, Philadelphia up by one at half time,
Speaker 1: Sixers one by thirty five in Toronto, Dallas one by
Speaker 1: two in Utah, and Phoenix one in New Orleans. The
Speaker 1: Son's Chris Paul took fourteen shots. He made all four teams.
Speaker 1: John stash Llanto, al right, John, thank you. SFP futures
Speaker 1: sound twenty seven points down at down futures down a
Speaker 1: hundred eight nastack futures down a hundred twenty three points.
Speaker 1: We'll get more on the earnings disappointments from Apple and Amazon.
Speaker 1: Next will be speaking live with Gene Munster, co founder
Speaker 1: of Luke Venture's This is Bloomberg Bloomberg eleven three oh
Speaker 1: weather mostly sunny, breezy, low sixties. Today, will be in
Speaker 1: the low sixties and mainly sunny Tomorrow. Clouds increased Sunday,
Speaker 1: so does the temperature. We'll get up to near seventy
Speaker 1: right now forty two in Central Park Markets, headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com,
Speaker 1: the Bloomberg Business Out and at Bloomberg Quick Tape. He's
Speaker 1: a Bloomberg Business Flash and I'm Karen Moscow, US not
Speaker 1: Index futures lower this morning following earnings from Amazon and Apple,
Speaker 1: and we checked the markets every fifteen minutes throughout the
Speaker 1: trading day on Bloomberg. Right now, S and P futures
Speaker 1: are down thirty points down, futures down one, and NASTAG
Speaker 1: futures down one. Four ten year treasury down nine thirty
Speaker 1: seconds two eight five percent. They yield on the two
Speaker 1: year two point six six for cent. And I'm ex screwed.
Speaker 1: Oil is up one and a quarter percent, up a
Speaker 1: dollar thirty one at a hundred six dollars sixty eight
Speaker 1: cents of barrel. That's a Bloomberg business flash. Now here's
Speaker 1: Michael Barr with more on what's going on around the world. Michael,
Speaker 1: thank you very much. Karen, and Russia found it targets
Speaker 1: from practically one end of Ukraine to the other, including Kiev.
Speaker 1: The bombardment of the city took place while the head
Speaker 1: of the United Nations was visiting Ukraine's capitol. Round one
Speaker 1: of the NFL draft is in the books. The first
Speaker 1: five picks were all defensive players. The Jaguars took Trayvon
Speaker 1: Walker with the top pick. The Jets at number four.
Speaker 1: Pick cornerback Ahmad Gardner. The Giants at five took another
Speaker 1: edge Russia Cavan Thibadeaux. In baseball, the Yankees beat the
Speaker 1: Orioles ten five. The Red Sox Nationals lost NHL. The
Speaker 1: Islanders beat the Capitol's five one, the Bruins one. Global
Speaker 1: news twenty four hours a day on air end on
Speaker 1: Bloomberg Quicktake power by more than twenty seven hundred journalists
Speaker 1: analysts in more than a hundred twenty countries. Michael bar
Speaker 1: this is Bloomberg. Nathan all right, Michael, thanks for coming
Speaker 1: up to five nineteen on Wall Street. I from the
Speaker 1: Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and we
Speaker 1: are wrapping up a very busy week for tech earnings
Speaker 1: with souring sentiment. This morning. Shares of Apple are down
Speaker 1: about two and a half percent. The iPhone maker reported
Speaker 1: record sales in the latest quarter, but the outlook is
Speaker 1: what's causing concern. And Amazon is plunging by nearly nine percent,
Speaker 1: with spending maybe catching up on that e commerce giants profits.
Speaker 1: Let's get more insights now. Gene Munster is with us
Speaker 1: this morning. Co founder of Loop Ventures. Gene it's good
Speaker 1: to speak with you this morning, and want to start
Speaker 1: with Apple because CEO Tim Cook was pretty explicit in
Speaker 1: the call after the record sales that the drag from
Speaker 1: the supply chain is a big concern for him. Is
Speaker 1: it a concern for you? It's not. I think it
Speaker 1: really hides the bigger picture here, which is the supply
Speaker 1: chain constraint topic has been part of the Apple story
Speaker 1: for the past twenty years. Apple comes out with a
Speaker 1: new product, consumers have to wait two to four months
Speaker 1: to get the new products. What happened a year ago,
Speaker 1: in actually a year ago to the date AP one
Speaker 1: is notable because that was the first quarter that their
Speaker 1: CFO talked about more broader supply constraints. They had never
Speaker 1: mentioned that before. We had a one time mentioned in
Speaker 1: that quarter. Since that time, they've been averaging nine times
Speaker 1: talking about these supply constraints. And the reason why I
Speaker 1: mentioned that is that each time they have proven not
Speaker 1: just over the last four quarters, but the last twenty years,
Speaker 1: that that consumers are willing to wait when Apple products
Speaker 1: aren't available. And so when we get we as investors
Speaker 1: in Apple kind of the broader investor in Apple community
Speaker 1: gets their heads wrapped around the vortex of what does
Speaker 1: it mean with these supply constraints the impact on the quarter.
Speaker 1: This quarter it's a negative seven percent. I think what
Speaker 1: misses the point is that those sales just get pushed
Speaker 1: into subsequent quarters. And uh. The reason, the final piece
Speaker 1: that's most important, and this was a spectacular quarter, The
Speaker 1: piece that's most important around that and evidence that consumers
Speaker 1: are willing to wait is Apple just grew their business
Speaker 1: at nine percent. The street was looking for four percent.
Speaker 1: That was in the face of a fifty three percent
Speaker 1: comp just a staggeringly difficult comp and they still grew
Speaker 1: off that along with shutting down Russia for a month
Speaker 1: and the slowing Macero and I think what that speaks
Speaker 1: to is that all of this handwringing around what's going
Speaker 1: on in the supply chain really misses the bigger point
Speaker 1: that Apple has products that people want. To that point, though, Gene,
Speaker 1: are Apple consumers willing to wait if the products don't
Speaker 1: show big changes in upgrade I'm thinking about iPhone thirteen
Speaker 1: compared to iPhone twelve or even the iPad. The sales
Speaker 1: and been kind of sluggish on some of the newest lines. Well,
Speaker 1: I think that year and year. Consumers do wait and
Speaker 1: part of the reasons that we're just increasingly dependent upon
Speaker 1: these products. Um, and so I think, yes, people do
Speaker 1: wait for him. And I think the results were impressive.
Speaker 1: They grew the US at eighteen percent this quarter and
Speaker 1: these were lights out good numbers. And so I would disagree.
Speaker 1: I think they're doing a great job of growing the products.
Speaker 1: So um, yeah, I think China grew at four percent.
Speaker 1: Tough comp there too. Let's turn to Amazon. The spend
Speaker 1: seems to be a focus for investors. Has the spending
Speaker 1: on personnel warehouses caught up with grove? It has? Well,
Speaker 1: that's the key. They have one point four million workers
Speaker 1: and inflations hate them. That's the vortex at Amazon's facing,
Speaker 1: much more than Apple and other tech companys. And I
Speaker 1: think what you're seeing is slowing growth. Their retail business
Speaker 1: is down three percent this quarter. They had a difficult
Speaker 1: comp They were not able to power through that comp
Speaker 1: This is different than what happened to Apples. I mentioned
Speaker 1: Apple continue to grow uh nicely against the difficult comp
Speaker 1: Amazon did not have that benefit. And so when you
Speaker 1: think about the expense question related to Amazon, you have
Speaker 1: to put it in the context of what's going on
Speaker 1: with their broader business, and so you have this dipping
Speaker 1: retail business. It's likely going to do that dip is
Speaker 1: likely going to accelerate in the June quarter, probably gonna
Speaker 1: be down six percent from down three percent in March.
Speaker 1: And then you have these rising costs, and so you
Speaker 1: have this mix and uh, an Apple's case have felt
Speaker 1: like this actually was really a phenomenal quarter. In Amazon's case,
Speaker 1: I'm more concerned because they are a brominter for broader
Speaker 1: consumer spending. We're starting to see that slow and you
Speaker 1: throw on top of that that cost equation that you mentioned, Nathan,
Speaker 1: and I think you get to a point where this
Speaker 1: stock can be range bound here for the next three
Speaker 1: to six months. In our last thirty seconds here, Gene,
Speaker 1: can Amazon web services make up the difference? Uh? The
Speaker 1: simple answer is no. It's web services are about twelve
Speaker 1: percent of total revenue, and at the end of the day,
Speaker 1: this is still a retail business. And so uh, Amazon
Speaker 1: needs to Essentially, what what has to happen is they
Speaker 1: need to just spend this year resetting growth expectations. And
Speaker 1: I'll leave you with on a on a shining note,
Speaker 1: not only for Amazon, for Broader Tech two thousand twenty
Speaker 1: three is going to be a great year because I
Speaker 1: think that the comps are gonna get easier, and I
Speaker 1: expect these stocks to do well at that period. We'll
Speaker 1: put that on tape, see if it holds up. Gene Monster, Great,
Speaker 1: have you gone with us this morning? Gene Monster, co
Speaker 1: founder of Loop Ventures. As we watch stocks fall to
Speaker 1: wrap up this trading month, SMP futures are down twenty
Speaker 1: five point, staff futures down ninety four, NASTACK futures leading
Speaker 1: the clients down a hundred twenty three points at ten
Speaker 1: your treasure yield two six. This is Bloomberg Bloomberg eleven
Speaker 1: three oh weather mostly sunny, breezy, low sixties today, will
Speaker 1: stay in the sunshine tomorrow with low sixties For Saturday.
Speaker 1: Highs could hit seventy with increasing cloud Sunday. Right now
Speaker 1: forty two in Central Park, broadcasting live from the Bloomberg
Speaker 1: Interactive Broker Studio in New York. Bloomberg E Living Freedom
Speaker 1: to Washington, d C. Bloomberg ninety nine one to Boston,
Speaker 1: Bloomberg what oh six one to San Francisco, Bloomberg sixty
Speaker 1: to the country. Sirius XM Chad A one nine team,
Speaker 1: and around the globe, the Bloomberg Business app and Bloomberg
Speaker 1: Radio dot com. This is Bloomberg Daybreak. It's five thirty
Speaker 1: on Wall Street. Good morning. I'm Nathan Hager and I'm
Speaker 1: Parard Moscow. We're just about four hours away from the
Speaker 1: open of US trading. Let's get you up to date
Speaker 1: on the news you need to know at this hour.
Speaker 1: Apple shares down about two and a half percent in
Speaker 1: early trading despite posting record earnings. In a conference call yesterday,
Speaker 1: the company said it could lose up to eight billion
Speaker 1: dollars in the current quarter due to supply constraints, and
Speaker 1: shares of Amazon are lower as well, caring down nearly
Speaker 1: nine percent. That company announced the lost money in the
Speaker 1: first quarter and could see another loss in this period.
Speaker 1: Bloomberg Intelligence senior e commerce and retail analysts Punum Goyle
Speaker 1: says it's due to rising costs. Aws continues let's pace,
Speaker 1: So that's great to hear on the online business, clearly
Speaker 1: in line with expectations. But the margin week you could
Speaker 1: say that that's surprising, but it's really not. I mean,
Speaker 1: from everything that we've been seeing all year, the supply
Speaker 1: chain crunch is only getting worse, it's not getting better,
Speaker 1: so they are getting hit from higher costs across the board.
Speaker 1: Bloomberg intelligence analyst Punam Coyle says Amazon's cloud service a
Speaker 1: WS has always been able to offset higher retail costs
Speaker 1: until now, well elsewhere. Nathan Shares of Intail down more
Speaker 1: than three percent after second quarter four US raised concerns
Speaker 1: and later today but your results from oil giants Exxon
Speaker 1: and Chevron. Let's turn to Twitter now, Karen, were are
Speaker 1: finding out more about how Elon Musk is financing his takeover,
Speaker 1: and let's get the latest live from Bloomberg. Need a young,
Speaker 1: Good morning, Rnita, Good morning, Nathan. Of filing shows Elon
Speaker 1: Musk offloaded about four billion dollars worth of Tesla stock
Speaker 1: to cover the twenty one billion dollar equity portion of
Speaker 1: his deal to buy Twitter. After those filings were made public,
Speaker 1: he tweeted that no further Tesla sales were planned, Bloomberg
Speaker 1: sources say before the deal was announced, Musk floated the
Speaker 1: idea of cutting jobs and costs at Twitter, you know,
Speaker 1: on calls with bankers. He also discussed ideas to monetize
Speaker 1: the platform to boost cash flow, including a potential subscription
Speaker 1: service to drive recurring revenue. Live in New York. I'm
Speaker 1: rened a young Bloomberg day Break, Nita, thank you. Overseas,
Speaker 1: stocks and China are rebounding. The Hanksang Tech Index searched
Speaker 1: eleven percent and Chinese equities rallied after the country announced
Speaker 1: economic stimulus plans and a commitment to curbing the spread
Speaker 1: of Cove and Ukraine. Karen, Russian missiles poured over the
Speaker 1: capital key of overnight, and Secretary of State Antony B.
Speaker 1: Lincoln says Russia is continuing it's offensive in the Don
Speaker 1: Boss region. There is a ferocious battle taking place right
Speaker 1: now across hundreds of miles in eastern and southern Ukraine,
Speaker 1: and the Russians bring a lot of firepower to that.
Speaker 1: Secretary of State Antony Lincoln says the US and other
Speaker 1: nations continue to arm Ukraine to defend those regions. And
Speaker 1: SMP futures are lower this morning, down thirty one points down,
Speaker 1: Features down a hundred twenty nastack futures down a hundred
Speaker 1: thirty nine. Straight ahead, your latest local headlines, plus a
Speaker 1: check of sports. This is Bloomberg, all right, Karen, thank you.
Speaker 1: It's five thirty three on Wall Street forty two degrees
Speaker 1: in Central Park and we've got an accident on the
Speaker 1: westbound belt Parkway nap Street. Details coming up in traffic.
Speaker 1: Michael Barr has more on what's going on in New
Speaker 1: York and around the world. Good morning, Michael, Good morning Nathan.
Speaker 1: New York City postpone enforcement of salary transparency until November
Speaker 1: after advocates and business leaders clashed on whether pay disclosure
Speaker 1: is the best way to close the persistent gender gap.
Speaker 1: The city Council, who voted for the delay also exempted
Speaker 1: companies from being charged a monetary fine for the first
Speaker 1: violation and limited lawsuits related to the pay information to
Speaker 1: current employees. The approved amendments represent a partial win for
Speaker 1: businesses that had lobbied against the law, which was originally
Speaker 1: sent to take effect by May fifteen. Funeral services take
Speaker 1: place today for falling New York City fire fighter Timothy Kline,
Speaker 1: he died Sunday while battling ablaze in Brooklyn. Services for Klein,
Speaker 1: who was thirty one, take place today in Belle Harbor,
Speaker 1: a twenty one year old man also died in that blaze.
Speaker 1: President Biden confirmed that there are ongoing discussions in his
Speaker 1: administration about reducing student loan debt, though not for proposed
Speaker 1: fifty dollars. White House Press Secretary Jen Psaki says, despite
Speaker 1: these talks, the President remains eager to sign anything that
Speaker 1: comes to his desk from Congress on this issue. Congress
Speaker 1: sends in the bill tomorrow, he could sign it, and
Speaker 1: he would sign it to to give ten thousand dollars
Speaker 1: a student that relief. We've also he has not hesitated.
Speaker 1: President Biden's spokesperson says that the President has not ruled
Speaker 1: out the possibility of executive action to get the ball rolling.
Speaker 1: The FDA says it will be moving ahead with a
Speaker 1: proposed ban on menthol cigarettes and flavored cigars nationwide. FDA
Speaker 1: Commissioner Dr Robert Califf says it could save thousands of lives.
Speaker 1: An estimate show it meant that it menthol is no
Speaker 1: longer an option in combustible tobacco products, up to six
Speaker 1: thousand deaths would be avoided over the course of forty years.
Speaker 1: Dr Califf says menthol cigarettes account for more than a
Speaker 1: third of all cigarettes sales in the US. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg
Speaker 1: Quick Take powered by more than twenty seven hundred journalists
Speaker 1: and analysts in more than a hundred twenty countries. On
Speaker 1: Michael bar this is Bloomberg, Nathan, Thank you, Michael, five
Speaker 1: thirty five on Wall Street. John Stash I was here
Speaker 1: at the Bloomberg Sports Update. All right, Nathan. The draft
Speaker 1: was in Las Vegas, but New York dominated the early
Speaker 1: going with four of the first ten picks. The Jets
Speaker 1: at four took Cincinnati cornerback Sauce Gardner came back at
Speaker 1: ten to select Ohio state wide out Garrett Wilson's to
Speaker 1: the Jets filled two definite needs, as do the Giants,
Speaker 1: taking Oregon. Pass rusher came on Thibodeau at five Alabama
Speaker 1: tackle Evan Neal two picks later. Giants g M. Joe
Speaker 1: Shane then asked about how it all shook out. We
Speaker 1: went to these scenarios a million times than we had
Speaker 1: seven or eight cards, and we just kept switching them
Speaker 1: back and forth based on different scenarios. And this was
Speaker 1: a scenario we went over and if there were two
Speaker 1: tackles on the board in the pass rusher, we're gonna
Speaker 1: go pass rusher, knowing we can get a tackle at
Speaker 1: seven so we were were static when that that scenario
Speaker 1: came up. The first overall was Georgia Edge Russia, Trebon
Speaker 1: walcome to Jacksonville. Only one quarterback taken, Kenny Pickett played
Speaker 1: college football in Pittsburgh. He'll stay there. Drafted by the
Speaker 1: Steelers there a long time TV Ben Roethlisberger just retired.
Speaker 1: Draft continues tonight rounds two and three, and Giants yesterday
Speaker 1: made official that they will not pick up the fifth
Speaker 1: year option on QV Daniel Jones that would have assured
Speaker 1: him twenty two million dollars in twenty three. Giants want
Speaker 1: to first see how Jones does and if he can
Speaker 1: stay healthy this upcoming season. Yankees tonight bring their six
Speaker 1: game win streak and the best record in American League
Speaker 1: to Kansas City. Yanked the Orioles ten to five. Baltimore
Speaker 1: had five airs Aaron judge of the three on Homer
Speaker 1: Nolan Arronado caused the benches to empty and St. Louis
Speaker 1: Wednesday got hit with a one game suspension. NBA Playoffs
Speaker 1: top set Phoenix trailed by ten at the half, but
Speaker 1: one in New Orleans as Chris Paul made all fourteen
Speaker 1: of his shots, Sons win the series four two. Dallas
Speaker 1: wonted series with Utah. Philadelphia did likewise with Toronto, John
Speaker 1: Stash Bloomberg's Right John, Thank you, It's seven on Wall
Speaker 1: Street Time Now for the Tri State Business Report. For
Speaker 1: that we turned to Bloomberg's ed Corey. Home sales in
Speaker 1: the Hampton's sagged in the first quarter, weighed down by
Speaker 1: a lack of listings. There were six hundred and seventy
Speaker 1: one homes for sale in the area at the end
Speaker 1: of March, the fewest on record in the seventeen years
Speaker 1: that appraiser Miller Samuel and brokerage Douglas Eleman Real Estate
Speaker 1: have been tracking data. Inventory was down from the first
Speaker 1: quarter of twenty one. A seventeen room New York City
Speaker 1: mansion formerly owned by Italian designer Johnny Versaci is coming
Speaker 1: on the market for seventy million dollars. Versaci started the
Speaker 1: Versace Fashion House in night bought the town House through
Speaker 1: seven and a half million dollars. In Connecticut's on track
Speaker 1: to become the fifth U S state with comprehensive consumer
Speaker 1: privacy legislation. Both chambers of the General Assembly have approved
Speaker 1: a bill. It would give people the right to opt
Speaker 1: out of the process against sale of their personal data
Speaker 1: and ask that it be deleted. That your Bloomberg trying
Speaker 1: state business report. I'm Ed Corey. Thanks that It's five
Speaker 1: eight on Wall Street. Bloomberg Radio is on the air
Speaker 1: from San Francisco to New York, London to Hong Kong.
Speaker 1: Let's check in with our global news team for some
Speaker 1: of the top stories heard on our three D at
Speaker 1: affiliate radio stations around the world. I'm Steve potaskan k
Speaker 1: X in Los Angeles. We're talking about Netflix cutting jobs
Speaker 1: after its disappointing subscriber growths. I'm John Donnetor telling k
Speaker 1: CDs listeners in San Francisco that Apple expects it and
Speaker 1: bruised by another round of COVID restrictions in China. Orni
Speaker 1: Donahoe on ktr H in Houston, oil heading for its
Speaker 1: fifth monthly game effort, another tumultuous period of trading. I'm
Speaker 1: Jeff Fullinger and on w io D in Miami. I'm
Speaker 1: reporting Frontier Airlines just cutting flights at some Florida airports
Speaker 1: because of congestion. I Made Cory on w w J
Speaker 1: in Detroit. I'm reporting a buyer has emerged. You redeveloped
Speaker 1: the Buick City site in Flynn, and those are some
Speaker 1: of the stories our hundred Bloomberg journalists and analysts are
Speaker 1: working on this morning around the world. It's nine on
Speaker 1: Wall Street. The following is an editorial from Bloomberg Opinion.
Speaker 1: With Brazil's presidential election list and six months away, the
Speaker 1: state of the economy is the country's biggest priority. Unfortunately,
Speaker 1: neither incumbent jay Or Bolsonaro nor his main rival, former
Speaker 1: President Louise and Nacio Lula de Silva, have shown signs
Speaker 1: they intend to prioritize the economic reforms the country needs
Speaker 1: to return to sustainable growth. Brazilians deserve better. With many
Speaker 1: voters still undecided, a third way candidate with a credible
Speaker 1: economic record could conceivably seize the middle ground. After all,
Speaker 1: centrist parties have fared well in recent municipal elections, but
Speaker 1: so far moderates have failed to unite behind a single
Speaker 1: presidential standard bearer. Unless a viable alternative emergence soon, Brazilians
Speaker 1: will be left with a choice between two populists neither
Speaker 1: likely to make the changes needed to unlock Brazil's potential.
Speaker 1: That would be a shame. This editorial was written by
Speaker 1: the Bloomberg Opinion editorial Board. I'm David Shipley. For more
Speaker 1: Bloomberg opinion, please go to Bloomberg dot com, Slash Opinion
Speaker 1: or opian go on the Bloomberg Terminal. This has been
Speaker 1: Bloomberg Opinion and you can hear Bloomberg opinion editorials every weekday.
Speaker 1: At this time, terminal customers can read more at O
Speaker 1: p I nd go SP futures down thirty points now
Speaker 1: Town futures down a hundred nineteen. Nasdaq futures lower by
Speaker 1: a hundred forty points or one percent. You're listening to
Speaker 1: Bloomberg Daybreak Bloomberg eleven three oh weather mostly sunny, breezy,
Speaker 1: low sixties. To wrap up this week, it will be
Speaker 1: mainly sunny, low sixties. Tomorrow, clouds increase Sunday high near
Speaker 1: seventy right now forty two in Central Park markets. Headlines
Speaker 1: and breaking news twenty four hours a day at Bloomberg
Speaker 1: dot Com a Bloomberg Business apt and at Bloomberg Quicktape
Speaker 1: is a Bloomberg Business Flash and I'm Karen Moscow. And
Speaker 1: stocks in Europe are rising as China's pledged to ramp
Speaker 1: up stimulus lifts Optimus Shimen. Strong earnings continue to roll in,
Speaker 1: while US stock index futures are lower following earnings from
Speaker 1: Amazon dot Com and Apple, with Amazon shares down about
Speaker 1: eight points seven percent this morning and Apple down two
Speaker 1: and a half percent. We checked the markets every fifteen
Speaker 1: minutes throughout the trading day. On Bloomberg and NASDAC futures
Speaker 1: are lowered down a hundred to forty three points or
Speaker 1: one point one percent, with technology dragging. SMP futures down
Speaker 1: about thirty two points and DOWN futures down one d
Speaker 1: thirty one. The decks in Germany higher up nine tenths
Speaker 1: of a percent. Ten year Treasury down thirteen thirty seconds,
Speaker 1: yield two point eight seven percent. The yield on the
Speaker 1: two year two point six eight percent. Nine X Screwed
Speaker 1: oil is up when at a third percent of a
Speaker 1: dollar forty one at a hundred six dollars seventy seven
Speaker 1: cents of barrel comics gold is up one point three
Speaker 1: percent or twenty four dollars ninety cents at nineteen sixteen
Speaker 1: twenty announced. The euro one point oh five seven two
Speaker 1: against the dollar, British bound one point two five six five.
Speaker 1: The yen is at one thirty point four five and
Speaker 1: bitcoin this morning and down one point eight percent at
Speaker 1: thirty nine thousand, one hundred ft dollars. That's a Bloomberg
Speaker 1: business flashow here' smuckle bar with Moore on what's going
Speaker 1: on around the world. Michael Karen, thank you very much.
Speaker 1: Hukraine's leader has accused Russia of trying to humiliate the
Speaker 1: United Nations by reigning missiles on Kiev during a visit
Speaker 1: by Secretary General Antonio gu Terrace. One Russian target struck
Speaker 1: a residential high rise and another building. Former Minneapolis police
Speaker 1: officer Derek Chauvin is appealing his conviction for murder George Floyd,
Speaker 1: arguing that jurors were intimidated by protests. Round one of
Speaker 1: the NFL draft is in the books. The first five
Speaker 1: picks were all defensive players. The Jaguars took Trayvon Walker
Speaker 1: with the top pick. The Jets at number four pick
Speaker 1: quarterback a mods Sauce Gardner. And with a nickname like Sauce,
Speaker 1: you know he's good. The Giants have five. It's like
Speaker 1: another edge running Saucy Kavan Thibodeaux. Baseball Yankees beat the
Speaker 1: Orioles ten five. Red Sox Nationals lost NHL, the Islanders
Speaker 1: beat the Capital's five one bruins one Global news twenty
Speaker 1: four hours a day. I'm Michael are Uh and you
Speaker 1: can hear it on Quick Take and powered by more
Speaker 1: than seven hundred journalists analysts more than a hundred twenty
Speaker 1: countries and now here saw us himself. Thank you for
Speaker 1: that much. Appreciate it. It's five forty nine on Wall
Speaker 1: Street Live from the Bloomberg Interactive Broker Studios. This is
Speaker 1: Bloomberg Day Break. Let's take a look at these markets now,
Speaker 1: Jeffrey you is with us this morning. Senior strategists at
Speaker 1: b n Y Melon. Well, you know what they say
Speaker 1: about April, jeff the cruelest month, and it certainly looks
Speaker 1: that way, at least for US stocks. Do you see
Speaker 1: any signs for optimism for risk investors heading into May? Um? So,
Speaker 1: at this point it's balanced. I would say it's all
Speaker 1: going to be quite defensive. And if you look at
Speaker 1: the how yields are performing, still the sets leaving the
Speaker 1: way fifty basis point of highs and really being priced
Speaker 1: in with the chances. More so, as long as as
Speaker 1: we still have uncertainty over the past time, I don't
Speaker 1: think the markets are going to be on the risk
Speaker 1: on note, and that's all top of you the other
Speaker 1: resties such a supply such as the war for example. Obviously,
Speaker 1: though we are seeing risk on at least in European
Speaker 1: markets this morning on the promise of Chinese stimulus. Why
Speaker 1: isn't that necessarily playing out in the US market? Um, So,
Speaker 1: US is more of the closed than economy, and it's
Speaker 1: a trade to GDP ratio is much lower and compared
Speaker 1: to Europe, and the Europe will see a lot more
Speaker 1: demand for cattle kids. For example. Of China ramps up investment,
Speaker 1: I'll just be a bit cautious on whatever China does, right,
Speaker 1: It's kind of a double edged sword, um, because if
Speaker 1: it's incremental investment, if I look at a Bloomberghum headline
Speaker 1: from this morning, um, it's along those lines that may
Speaker 1: not actually be sufficiency do much of the time being.
Speaker 1: But on the other hand, if it's full blown infrastructure investment,
Speaker 1: you know, for example, then you have the risk of
Speaker 1: um exacerbating the current supply issues. So be careful what
Speaker 1: you wish for now. We're seeing obviously a damp and
Speaker 1: sentiment this morning on the earnings, particularly from Apple and Amazon.
Speaker 1: How much for their pressure do you think we could
Speaker 1: see on stocks as the broader earnings picture plays out
Speaker 1: in the weeks to come. Um, it's still going to
Speaker 1: be based on whatever is going to happen, you know,
Speaker 1: on the SAID side, I think that that's going to
Speaker 1: be the predominant driver. So I would pick focus on
Speaker 1: on that. You know, stocks will react to overall financial
Speaker 1: conditions on the said and the dollar wants to some
Speaker 1: of those things that have more clarity than I think
Speaker 1: we will be able to see some better performance of
Speaker 1: at this point. Yet, let's wait for the Fed. Are
Speaker 1: you looking for further rises in treasury yields on the
Speaker 1: Feds moves? Um? So for now, I think we're going
Speaker 1: to be in a high range. But heading into the
Speaker 1: next decision now probably be up with news will be
Speaker 1: a bit more contained and for the time being. But
Speaker 1: net nets, we still think that that the pressure is
Speaker 1: going to be to the upside, and we're seeing that
Speaker 1: in the dollar and the impact of dollar strength on stocks.
Speaker 1: Where could that go? So the impact of the dollars
Speaker 1: stocks you know right now, sorry, the a dollar on
Speaker 1: on stocks there is twofold you know one it does
Speaker 1: reducing the overseas earnings, but not on the second part
Speaker 1: of it um it Actually it does prove in the
Speaker 1: U S purchasing power as well, so for those within
Speaker 1: put costs that exposed overseas, that helps margins. So it's
Speaker 1: a double edged source. But again, as I mentioned earlier,
Speaker 1: the overall senses, the US is a bit more of
Speaker 1: a closed economy. It's not too exposed to international conditions
Speaker 1: and that means deaf X so compared to the Eurozone,
Speaker 1: to said, will be less worried about the currency coming
Speaker 1: out of the major or the major decision from the Fed.
Speaker 1: We're going to get the April jobs report. What's your
Speaker 1: expectation there and what kind of a driver could that
Speaker 1: be for FED policy going past May? Um So we
Speaker 1: don't have a curly on that yet, you know, heading
Speaker 1: into the jobs report that net net. I do think
Speaker 1: it's also important to a focus I know where the
Speaker 1: earnings are, sorry, well, where where average ouity earnings go
Speaker 1: if that continues to rise, not just on absolute basis
Speaker 1: on the reddist basis abut placion levels of the Falk
Speaker 1: today for example, a cycle point four percent as long
Speaker 1: as the gap versus that is now against that's the
Speaker 1: inflation risk of is going to be strong, and the
Speaker 1: risks and to growth will be strong. Of demand will
Speaker 1: be firm, and policy risk and will be to the upside,
Speaker 1: and that will impact the sentiment. Thanks for this, jeff
Speaker 1: great having go on with us this morning. Jeffrey, you
Speaker 1: senior strategist at b n Y Mellen Karen A right, Nathan,
Speaker 1: thank you, and it's five fifty three on Wall Street.
Speaker 1: Time Now for a legal story we're watching this morning.
Speaker 1: It has brought to you by American Arbitration Association. Business
Speaker 1: dis utes are inevitable, resolve faster with the American Arbitration Association,
Speaker 1: the global leader in alternative disviewed resolution for over ninety years.
Speaker 1: More at a d R dot org. A year after
Speaker 1: the sudden collapse of Artigo sent shock waves through global finance,
Speaker 1: Manhattan federal prosecutors arrested and criminally charged the owner, Bill Long,
Speaker 1: and his former top lieutenant, and one of the highest
Speaker 1: profile Wall Street prosecutions in years. Prosecutors said the two
Speaker 1: men had engaged in a criminal scheme to manipulate the
Speaker 1: markets and mislead banks, in a scheme they called staggering
Speaker 1: in his size and brazen in its execution for Moura
Speaker 1: Bloomberg's during Grosso speaks to James Park, a professor had
Speaker 1: u ce l A law school. This is being called
Speaker 1: one of the highest profile white collar prosecutions in recent memory.
Speaker 1: Do you agree with that? And why I agree? Simply
Speaker 1: because of the size of the alleged market manipulation, something
Speaker 1: that I think the extent of which in my mind
Speaker 1: seemed unimaginable until it actually happened. And it's also a
Speaker 1: very ambitious case. In my view, market manipulation is very
Speaker 1: difficult to identify and define, and so the case in
Speaker 1: my view, is forging ahead in new areas and not
Speaker 1: only affect the individual defendants in the case, but it
Speaker 1: can also create law and expectations for the way that
Speaker 1: trading happens on Wall Street. I get what his lying
Speaker 1: to the banks was about, but why is it illegal
Speaker 1: to buy a lot of stock, to buy it at
Speaker 1: different times of the day when what's illegal about that?
Speaker 1: It's a very high standard to meet you and I
Speaker 1: think you've really hit the nail on the head. The
Speaker 1: standard for market manipulation, which was discussed in the criminal
Speaker 1: context about thirty years ago in a case of the
Speaker 1: Second Circuits decided called the Moharan case, basically says the
Speaker 1: sole purpose of the stock purchases has to be manipulation,
Speaker 1: that you are buying the stock prices solely to artificially
Speaker 1: inflate the stock price, and it's really a question of intent.
Speaker 1: Low is the intent of Archegoshong and the other participants
Speaker 1: in the scheme was the sole intend to artificially inflate
Speaker 1: the stock price? And I think that's a very tough
Speaker 1: standard to meet, although I think it's very specific, and
Speaker 1: I think that the key thing the government has going
Speaker 1: for it maybe the sheer size of the transaction and
Speaker 1: what may be a complete lack of any connection to
Speaker 1: any economic fundamentals or you know, analysis that the stock
Speaker 1: was under priced and so further investment was warranted. But
Speaker 1: it is going to be a challenging legal theory to
Speaker 1: win that trial, and also who knows what the second
Speaker 1: Circuit will do if the case goes up on appeal.
Speaker 1: On the other hand, this is an area of law
Speaker 1: that has not been developed all that much, and sometimes
Speaker 1: court will adjust the law to some extent based upon
Speaker 1: a particularly egregious set of fact, and so I would
Speaker 1: not rule out the viability of this legal theory and
Speaker 1: as James Park, a professor at u c l A
Speaker 1: Law Schools, at the Bloomberg Student Garasso. Catch more of
Speaker 1: that interview plus analysis of the latest legal news by
Speaker 1: subscribing to the Bloomberg Law Podcast or downloading the show
Speaker 1: at Bloomberg dot com slash podcast. Attorneys can find exceptional
Speaker 1: legal research and business development tools at Bloomberg Law dot
Speaker 1: com and on the Bloomberg terminal at b Law. Go
Speaker 1: s and P Futures down thirty two points this morning.
Speaker 1: Down Future is down at hundred thirty four NASDAG Futures
Speaker 1: down one dty nine ten. Your treasury down twelve thirty seconds,
Speaker 1: yield two point eight seven percent, and they yield on
Speaker 1: the two year two point six eight percent and nine
Speaker 1: back Screwed oil is up one point three percent. Still
Speaker 1: my heead on Bloomberg day Break and check on the
Speaker 1: business headlines and all the news you need to start
Speaker 1: your day. And this is Bloomberg