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Speaker 1: From the Bloomberg Interactive Burgers Studios. This is Bloomberg day

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Speaker 1: Break for Monday, April seventeenth.

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Speaker 2: Coming up today, Tensions.

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Speaker 3: Over China lead the agenda at the G seven meetings

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Speaker 3: in Japan.

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Speaker 1: Settlement talks between Fox News and Dominion voting systems heat

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Speaker 1: up on the eve of their trial.

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Speaker 3: Merk pulls the trigger on a nearly eleven billion dollar acquisition,

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Speaker 3: and the head.

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Speaker 1: Of Google speaks out on artificial intelligence policem.

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Speaker 4: In Alabama, town need the public to come forward with

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Speaker 4: information about another man's shooting. Plus Broadway's longest running show

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Speaker 4: ends It's run. I'm Michael bar More Ahead.

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Speaker 5: I'm John Stasharon Sports Garrett Cole puts the Yankees the

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Speaker 5: victory of the Mets won in Oakland. The Nets and

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Speaker 5: Islanders have playoff games tonight.

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Speaker 6: That's all straight Ahead on Bloomberg day Break, the Business

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Speaker 6: news you need to start your day in just one

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Speaker 6: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

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Speaker 6: Business app, and everywhere you get your podcasts.

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Speaker 3: Good morning, I'm Nathan Hager.

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

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Speaker 3: Tensions over China could be high on the agenda in Japan.

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Speaker 3: That's where top diplomats from G seven nations are gathering.

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Speaker 3: Amy Morris has more from our Bloomberg ninety nine one

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Speaker 3: newsroom in Washington.

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Speaker 7: A senior State Department official tells Bloomberg News Now that

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Speaker 7: Japan holds the rotating G seven presidency, geopolitical challenges in

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Speaker 7: Asia will take on greater focus. Tensions in Taiwan especially

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Speaker 7: demand attention after China held more military drills around the

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Speaker 7: island and the US Navy said it sent a warship

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Speaker 7: through the Taiwan Strait on Sunday. Foreign ministers in Japan

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Speaker 7: will look for a common approach on issues like taiwan

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Speaker 7: human rights, economic coercion, and US moves to restrict China's

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Speaker 7: access to advanced technology like computer chips. In Washington, I'm

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Speaker 7: Amy Morris, Bloomberg Daybreak, Amy, thank you well.

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Speaker 1: Tensions over US DAD are also front and center this week,

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Speaker 1: but no deal in the dead ceiling. The word default

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Speaker 1: is being thrown around in some circles. European Central Bank

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Speaker 1: President Christie and the Guard says such an outcome would

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Speaker 1: have dire consequences around the world.

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Speaker 8: I have huge confidence in the United states. You know,

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Speaker 8: ever since my year in this country, in this city

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Speaker 8: in seventy three seventy four, I have had confidence in

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Speaker 8: this country, and I just cannot believe that they would

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Speaker 8: let such a major, major disaster happen.

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Speaker 1: ECB President Christie and the Guard made the comments. Unface

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Speaker 1: the Nation from CBS sketched the program every Sunday on

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Speaker 1: Bloomberg Radio.

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Speaker 3: In Israel, Karen Prime Minister Benjamin Netanyah, who is defending

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Speaker 3: the strength of his country's democracy. That's after Moody's lowered

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Speaker 3: Israel's credit outlook over a planned judicial overhaul that spurred

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Speaker 3: mass protests.

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Speaker 6: Israel is a vibrant democracy, has been a vibrant democracy

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Speaker 6: and will remain a vibrant democracy.

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Speaker 4: And you don't want who's the one who's most committed

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Speaker 4: to that is me?

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Speaker 3: Israeli Prime Minister Benjamin Netanyah, who made those comments on

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Speaker 3: NBC's Meet the Press, which can also be heard Sundays

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Speaker 3: on Bloomberg Radio.

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Speaker 1: Well, Nathan, we have new development this morning on a

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Speaker 1: massive lawsuit involving dominion voting systems and Fox News. Let's

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Speaker 1: get the latest live with Bloomberg Steve Rappaport's Steve Good Morning.

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Speaker 2: Good Morning, Karen and Nathan. On the eve of opening statements,

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Speaker 2: Judge Eric Davis announced a one day delay.

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Speaker 9: To the trial.

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Speaker 2: Sources tell The Wall Street Journal. The move is to

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Speaker 2: allow the parties more time to reach a settlement dominion,

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Speaker 2: says guests on Fox News shows repeatedly accused the company

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Speaker 2: of rigging its voting machines in the twenty twenty election

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Speaker 2: to switch votes from President Trump to Joe Biden. Fox

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Speaker 2: News is expected to argue it has the right to

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Speaker 2: report claims from a sitting president and his lawyers, even

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Speaker 2: if those claims later turn out to be false. Live

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Speaker 2: in New York, I'm Steve Rappaport Bloomberg Daybreak.

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Speaker 3: All right, Steve, Thanks, also have a couple of deals

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Speaker 3: to kick off the week on Wall Street. The first

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Speaker 3: involves pharmaceutical giant Merk, and we get the details live

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Speaker 3: with Bloomberg's John Tucker, John.

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Speaker 9: And ninth And it's one of the largest pharm of

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Speaker 9: deals in recent history. Murk is buying Prometheus Biosciences. The

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Speaker 9: price tag about ten point eight billion dollars. That works

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Speaker 9: out to two hundred dollars a share, a whoppings seventy

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Speaker 9: five percent more than Friday's closing price. Although they have

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Speaker 9: no approved drugs, Prometheus has some promising treatments in immunology.

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Speaker 9: A merksman looking to beef up its business because some

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Speaker 9: of its key drugs are coming off patent. In fact,

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Speaker 9: fifty five billion dollars worth of its sales are at

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Speaker 9: risk over the next seven years. Let's deal expected to

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Speaker 9: wrap up in the third quarter. Patent expirations are driving

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Speaker 9: M and A activity across the pharma sector, so this

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Speaker 9: probably won't be the last deal you're going to hear about.

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Speaker 9: Live in New York. I'm John Tucker, Bloomberg Daybreak.

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Speaker 1: All right, John, thanks well shareholders of the creator of

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Speaker 1: Angry Birds or anything but Angry. This morning, the company

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Speaker 1: Rovio up about eighteen percent after video game maker Sega

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Speaker 1: Sammy Holdings offered to buy the finished company for seven

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Speaker 1: hundred and seventy six million dollars. Nobio's board unanimously recommended

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Speaker 1: shareholder except shareholders U. Rovio's board unanimously recommended shareholders accept

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Speaker 1: the offer.

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Speaker 3: It's staying in Europe. Karen Word of job cuts at Barclay's.

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Speaker 3: Bloomberg News has learned the London based lender will eliminate

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Speaker 3: a one hundred roles in its investment banking group. The

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Speaker 3: cuts come as a slow down in deal making and

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Speaker 3: capital markets businesses continues at Barclay's and.

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Speaker 1: We're seemore falla from the historic deal between Credit Suite

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Speaker 1: and UBS. The Wall Street Journal reports outflows from Credit

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Speaker 1: Suite branded investment funds have accelerated in the week since

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Speaker 1: the takeover. The paper says net outflows from around three

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Speaker 1: hundred funds have reached five point six billion dollars since

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Speaker 1: the tie up.

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Speaker 3: Back here in the US, Careen, the CEO of Google

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Speaker 3: is speaking out about artificial intelligence. Alphabet Sundar Paschai says

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Speaker 3: the push to adopt AI technology must be well regulated

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Speaker 3: to avoid potential harmful effects.

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Speaker 10: The pace at which we can think can adapt as

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Speaker 10: societal institutions compared to the pace at which the technology

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Speaker 10: is evolving, there seems to be a mismatch. On the

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Speaker 10: other hand, compared to any other technology, I've seen more

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Speaker 10: people worried about it earlier in its life cycle, so

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Speaker 10: I feel optimistic.

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Speaker 3: Alphabet sud Dar Paschai made the comments on sixty Minutes

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Speaker 3: from CBS our Washington. Listeners can catch the show Sunday

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Speaker 3: Nights on Bloomberg ninety nine to one.

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Speaker 1: Another tech news. This morning, Apples sales in India had

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Speaker 1: a new high, reaching almost six billion dollars for the

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Speaker 1: year through March. Sources say revenue in India grew by

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Speaker 1: nearly fifty percent from the prior year. This search highlights

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Speaker 1: the market's increasing importance for the iPhone maker, as CEO

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Speaker 1: Tim Cook arrives in the country to open its first

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Speaker 1: local stores.

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Speaker 3: Finally, Karen, Netflix is apologizing to its customers this morning.

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Speaker 3: The service buckled under the strain of popular live streamed

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Speaker 3: reunion episode of Love is Blind. Down detector says thousands

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Speaker 3: of users reported Netflix streaming was unavailable yesterday. Straight ahead,

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Speaker 3: we'll get your latest local headline, Santa Check of sports.

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Speaker 3: This is Bloomberg. It is fifty five degrees in New York.

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Speaker 3: Should have some partial clearing this afternoon with Heisenem for sixties.

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Speaker 3: We'll get down to the low fifties tonight under a

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Speaker 3: partly cloudy sky. Time now to look at some of

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Speaker 3: the other stories making news in New York and around

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Speaker 3: the world. For that, we're joined by Bloomberg's Michael Barr.

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Speaker 3: Good morning, Michael, Good morning, Nathan Als.

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Speaker 4: Republicans are holding a hearing in Manhattan today targeting District

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Speaker 4: Attorney Alvin Bragg, the chair of the House Judiciary Committee.

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Speaker 4: Ohio Republican Jim Jordan scheduled the hearing at the Javit Center,

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Speaker 4: accusing brag of interfering in the twenty twenty four election

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Speaker 4: with the prosecution of former President Trump. However, Senate Majority

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Speaker 4: Leader Chuck Schumer says the real threat to New Yorker's

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Speaker 4: safety is a call by Jordan and Trump to defund

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Speaker 4: the FBI and police Department.

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Speaker 11: Every member in the House and Senate Democrat, Republican, liberal

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Speaker 11: conservative should denounce such attempts by former President Trump and

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Speaker 11: his allies to degrade public trust in our law enforcement

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Speaker 11: agencies out of personal peak and grievance.

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Speaker 4: Schumer calls Jordan's hearing a political stunt. Today, authorities in

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Speaker 4: one Alabama town are asking for the public's help to

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Speaker 4: make an arrest in another mass shooting. It happened over

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Speaker 4: the weekend at a birthday party in Dadeville. At least

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Speaker 4: four people were killed and more than two dozen injured.

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Speaker 4: Sudan's embattled capital faces a third day of heavy fighting

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Speaker 4: between the army and a power full rival force were

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Speaker 4: control of the country. The weekend civilian death toll in

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Speaker 4: Khartom has risen to around one hundred. Secretary of State

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Speaker 4: Anthony Blincoln says there is a shared deep concern about

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Speaker 4: the fighting.

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Speaker 12: We're also closely in touch with any American citizens INSIDAM

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Speaker 12: to make sure that those who are registered with the

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Speaker 12: embassy and that we're actually in contact with get all

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Speaker 12: the information they can about how to remain sales secure.

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Speaker 4: Secretary Blinken spoke of the G seven Foreign Ministries meeting

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Speaker 4: in Japan. The countdown is onto this morning's launch of

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Speaker 4: the tallest rocket ever built. Elon Musk's SpaceX is preparing

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Speaker 4: to launch Starship, the most powerful rocket ever built, into space.

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Speaker 4: After thirty five years, Broadway's longest running show has taken

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Speaker 4: its final bow. After nearly fourteen thousand performances, Phantom of

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Speaker 4: the Opera bid it farewell. Sunday. The last curtain call

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Speaker 4: brought out not just cast, crew and musicians, but the

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Speaker 4: original Broadway company and Andrew Lloyd Ubber himself.

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Speaker 12: He couldn't go.

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Speaker 1: Out with the best of conformance was bord to Christi.

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Speaker 4: Fandom won seven tony awards including Best Musical. Global News

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Speaker 4: twenty four hours a day, powered by more than twenty

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Speaker 4: seven hundred journalist and analysts and over one hundred and

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Speaker 4: twenty countries. Michael Barr, this is Bloomberg ninth.

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Speaker 3: And it's still there inside your mind. Thank you, Michael,

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Speaker 3: Thank you. After the Bloomberg Sports up date. Good morning,

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Speaker 3: John Stanshall by Nathan NBA playoffs just getting started. Everyone's

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Speaker 3: played once already. Injuries are looming large.

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Speaker 5: Milwaukee had the best regular season record, but the Bucks

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Speaker 5: lost Game one to Miami. Had to play most of

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Speaker 5: the way without Yanna's son to the Company's got a

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Speaker 5: bad back. They say the x rays were clean and

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Speaker 5: the heat also saw a key player go down in

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Speaker 5: this game, Tyler Hero broke his hand and Memphis John

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Speaker 5: Moran left with a hand injury. Those x rays were negative.

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Speaker 5: Grizzlies lost only six times all season. They lost to

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Speaker 5: the Lakers. The Clippers won in Phoenix, easy for Denver.

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Speaker 5: The Nets have game two tonight in Philadelphia. It's also

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Speaker 5: opening night in the Stanley Cup playoffs. The Islanders visit Carolina.

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Speaker 5: Speaking of injuries, another one for Yankees slugger John Carlos

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Speaker 5: Stantony's got a hamstring injury, expecting to miss at least

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Speaker 5: a month.

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Speaker 6: Here's Aaron Bruce.

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Speaker 13: I know he's he's really frustrated, but you know it's

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Speaker 13: it's opportunity now, it's opportunity for frankly people. We have

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Speaker 13: a lot of confidence in that we can mix and match.

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Speaker 13: We're gonna get some other people back here and then

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Speaker 13: in the next days, in the next couple of weeks,

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Speaker 13: and uh, you know, we gotta make.

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Speaker 5: Do Yankees off. Tonight before welcoming in the Angels, they

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Speaker 5: gained us one of the four game series of the Twins,

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Speaker 5: winning two nothing at the stadium thanks to Garrett Cole

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Speaker 5: complete game two hit or ten strike ass. Cole's already

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Speaker 5: four to zero. His era is under one. Mett's visited

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Speaker 5: the Dodgers tonight. They completed a sleep in Oakland, winning

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Speaker 5: four to three and ten names. Peter Wonzo a game

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Speaker 5: time home run of the ninth and he already is

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Speaker 5: eighth of the season. Matt Fitzpatrick is a brit who

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Speaker 5: has a kid vacationed every year at Hilton Had he

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Speaker 5: won the heritage It's fine to the playoff with Jordan Speed,

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Speaker 5: John Stash that Bloomberg Sports.

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Speaker 6: Live from coast to coast, from New York to San Francisco,

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Speaker 6: Boston to Washington, d C. Nationwide on SIRIUSXAM, the Bloomberg

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Speaker 6: Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 6: Good morning, I'm Nathan Hager. Stocks are getting off to

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Speaker 6: a relatively quiet start this morning. We'll see whether that

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Speaker 6: continues as we make our way further into first quarter

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Speaker 6: earning season.

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Speaker 3: So let's get you set for the trading week ahead.

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Speaker 3: We are joined this morning by Lori Calvacina, head of

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Speaker 3: US Equity Strategy at RBC Capital Markets. Laurie, it's always

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Speaker 3: great to speak with you, and we have seen stocks

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Speaker 3: do relatively well so far this year. Where do you

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Speaker 3: see the momentum going for equities?

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Speaker 14: Well, thanks for having me. As always, look, we think

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Speaker 14: it's going to continue to be a choppy environment this year.

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Speaker 14: I do think the bears have really, you know, sort

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Speaker 14: of overstated their case. I probably see more upside risk

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Speaker 14: than downside risk, but we have been training right around

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Speaker 14: forty one hundred target. I don't see anything really eminent

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Speaker 14: that would derail us. We'll see what happens in this

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Speaker 14: reporting season. We are watching Nasdaq futures positioning pretty closely

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Speaker 14: as a potential short term cell catalyst. But I think

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Speaker 14: investors just need to get ready for what is likely

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Speaker 14: to be not as bad as what some of the

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Speaker 14: bears are saying, but just a chopping environment for the

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Speaker 14: duration of the year.

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Speaker 3: Now, the bears have been pretty loud. We've heard once

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Speaker 3: again from Mike Wilson, probably the biggest bear on Wall

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Speaker 3: Street over at Morgan Stanley saying there needs to be

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Speaker 3: more earnings down grades. Why do you think the bears

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Speaker 3: have overstated their case? What's your case?

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Speaker 14: Well, look, I think it really all goes back to

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Speaker 14: how close are you looking at the history of how

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Speaker 14: markets trade around Earning's downgrade cycled. And I think the

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Speaker 14: bear case has largely rested on the idea of, hey,

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Speaker 14: earnings expectations are way too high. We think the number

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Speaker 14: is going to be lower, therefore markets need to come

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Speaker 14: down and retest the low. And I think that's just

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Speaker 14: overly simple, and I don't think it really has an

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Speaker 14: appropriate view of how Earning's grade cycles have impacted stock

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Speaker 14: prices in the past. If you go back historically, what

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Speaker 14: we have seen very consistently is that three to six

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Speaker 14: months before earning downgrade cycles are done, stock markets tend

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Speaker 14: to put in their bottom and I really shouldn't even

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Speaker 14: use the word ten, because that's what always tends to happen,

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Speaker 14: or actually always does happen in these major downgrade cycles.

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Speaker 14: We've gone back looking at this over several decades. The

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Speaker 14: other thing we've seen is that if you look at

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Speaker 14: the price action in the S and P five hundred

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Speaker 14: last year, and price action does loosely tend to follow earnings,

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Speaker 14: but around major inflections, stock prices do tend to lead earnings.

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Speaker 14: And when we compare how the stock price is acted

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Speaker 14: to what the earnings expectations are for this year, both

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Speaker 14: consensus and my well below consensus number, the price action

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Speaker 14: reflects a more onerous earnings environment than even what I'm

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Speaker 14: anticipating with my two hundred number. And then the last

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Speaker 14: thing I would say, if you look at earning downgrade cycles,

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Speaker 14: you tend to get the cuts in largely by the

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Speaker 14: April May timeframe. In the SMP and the small caps,

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Speaker 14: it tends to be more like May June. But really

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Speaker 14: this is the little reporting season where the numbers do

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Speaker 14: need to get cleaned up. Cell Grant the bears that

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Speaker 14: for that market bottom back in October to hold. So

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Speaker 14: I think it all goes back to the idea of

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Speaker 14: what is baked into stocks, and stocks already baked in

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Speaker 14: a pretty onerous earnings environment last year, and that's always

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Speaker 14: what they do in these downgrade cycles.

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Speaker 3: How do you read what we've heard from the big

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Speaker 3: banks so far? As we've just gotten earning season kicked

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Speaker 3: off here by JP Morgan, Chase, Wells Fargo, and City Group,

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Speaker 3: do you see the momentum continuing for them?

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Speaker 14: So look, it's very very early in the financials reporting season.

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Speaker 14: And you know, I will say, if you look at

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Speaker 14: the BKX performance, and we've been watching it very closely

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Speaker 14: relative to the Nasdaq one hundred performance, it does look

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Speaker 14: like it is trying to stabilize. So I think the

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Speaker 14: market is looking for an excuse to have some good

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Speaker 14: reaction to these earnings numbers. And you know, I think

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Speaker 14: Friday ended up being a little bit weaker than perhaps

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Speaker 14: the headlines from the banks themselves would have suggested.

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Speaker 5: My read.

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Speaker 14: And again I'm not a banks jannalyst, I'm a strategists.

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Speaker 14: I'm looking more for macro clues. But I was comforted

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Speaker 14: by the fact that we saw one of the banks

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Speaker 14: saying they weren't going to unreasonably tighten in here because

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Speaker 14: of past events. I thought there was a lot of

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Speaker 14: focus on regulation, which I think is appropriate. I think

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Speaker 14: that's a longer term issue that banks have to contend with.

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Speaker 14: But generally, if we look back over the last couple

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Speaker 14: of weeks, what companies are telling us, not just in

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Speaker 14: the banks but elsewhere, was that the sort of impact

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Speaker 14: from the recent events in banking has been pretty limited.

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Speaker 14: So far, we aren't seeing an overly alarmist tone from companies.

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Speaker 14: We're seeing more echoes of what we saw in the

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Speaker 14: Duke CFO survey a couple of weeks ago, where corporate

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Speaker 14: sentiment was actually improving prior to the SBB crisis. So

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Speaker 14: I think it's going to be really important to watch

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Speaker 14: the tone from here. I don't think we can read

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Speaker 14: too much from Friday. I think we were off to

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Speaker 14: a good start. Would have liked to have seen a

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Speaker 14: slightly better stock market reaction, but I think in general,

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Speaker 14: the idea that this was a contained crisis, I think

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Speaker 14: that is bearing out.

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Speaker 3: Just about thirty seconds left in this segment, Laurie, so

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Speaker 3: do you think that the worst is over then for

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Speaker 3: the banking turmoil.

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Speaker 14: I think that's that's what the market is telling us

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Speaker 14: right now, and I think that's the vote of confidence

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Speaker 14: we're seeing in the stabilization. In that VKX performance. We've

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Speaker 14: actually started to see a little bit of underperformance from the

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Speaker 14: NASDAT complex again, and that tells the investors are starting

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Speaker 14: to worry about the set again, which can only happen,

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Speaker 14: you know, if the Fed feels confident enough to go.

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Speaker 3: This is Bloomberg day Break Today, your morning brief on

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