Speaker 1: From the Bloomberg Interactive Burgers Studios. This is Bloomberg day
Speaker 1: Break for Monday, April seventeenth.
Speaker 2: Coming up today, Tensions.
Speaker 3: Over China lead the agenda at the G seven meetings
Speaker 3: in Japan.
Speaker 1: Settlement talks between Fox News and Dominion voting systems heat
Speaker 1: up on the eve of their trial.
Speaker 3: Merk pulls the trigger on a nearly eleven billion dollar acquisition,
Speaker 3: and the head.
Speaker 1: Of Google speaks out on artificial intelligence policem.
Speaker 4: In Alabama, town need the public to come forward with
Speaker 4: information about another man's shooting. Plus Broadway's longest running show
Speaker 4: ends It's run. I'm Michael bar More Ahead.
Speaker 5: I'm John Stasharon Sports Garrett Cole puts the Yankees the
Speaker 5: victory of the Mets won in Oakland. The Nets and
Speaker 5: Islanders have playoff games tonight.
Speaker 6: That's all straight Ahead on Bloomberg day Break, the Business
Speaker 6: news you need to start your day in just one
Speaker 6: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg
Speaker 6: Business app, and everywhere you get your podcasts.
Speaker 3: Good morning, I'm Nathan Hager.
Speaker 1: And I'm Karen Moscow. Here are the stories we're following today.
Speaker 3: Tensions over China could be high on the agenda in Japan.
Speaker 3: That's where top diplomats from G seven nations are gathering.
Speaker 3: Amy Morris has more from our Bloomberg ninety nine one
Speaker 3: newsroom in Washington.
Speaker 7: A senior State Department official tells Bloomberg News Now that
Speaker 7: Japan holds the rotating G seven presidency, geopolitical challenges in
Speaker 7: Asia will take on greater focus. Tensions in Taiwan especially
Speaker 7: demand attention after China held more military drills around the
Speaker 7: island and the US Navy said it sent a warship
Speaker 7: through the Taiwan Strait on Sunday. Foreign ministers in Japan
Speaker 7: will look for a common approach on issues like taiwan
Speaker 7: human rights, economic coercion, and US moves to restrict China's
Speaker 7: access to advanced technology like computer chips. In Washington, I'm
Speaker 7: Amy Morris, Bloomberg Daybreak, Amy, thank you well.
Speaker 1: Tensions over US DAD are also front and center this week,
Speaker 1: but no deal in the dead ceiling. The word default
Speaker 1: is being thrown around in some circles. European Central Bank
Speaker 1: President Christie and the Guard says such an outcome would
Speaker 1: have dire consequences around the world.
Speaker 8: I have huge confidence in the United states. You know,
Speaker 8: ever since my year in this country, in this city
Speaker 8: in seventy three seventy four, I have had confidence in
Speaker 8: this country, and I just cannot believe that they would
Speaker 8: let such a major, major disaster happen.
Speaker 1: ECB President Christie and the Guard made the comments. Unface
Speaker 1: the Nation from CBS sketched the program every Sunday on
Speaker 1: Bloomberg Radio.
Speaker 3: In Israel, Karen Prime Minister Benjamin Netanyah, who is defending
Speaker 3: the strength of his country's democracy. That's after Moody's lowered
Speaker 3: Israel's credit outlook over a planned judicial overhaul that spurred
Speaker 3: mass protests.
Speaker 6: Israel is a vibrant democracy, has been a vibrant democracy
Speaker 6: and will remain a vibrant democracy.
Speaker 4: And you don't want who's the one who's most committed
Speaker 4: to that is me?
Speaker 3: Israeli Prime Minister Benjamin Netanyah, who made those comments on
Speaker 3: NBC's Meet the Press, which can also be heard Sundays
Speaker 3: on Bloomberg Radio.
Speaker 1: Well, Nathan, we have new development this morning on a
Speaker 1: massive lawsuit involving dominion voting systems and Fox News. Let's
Speaker 1: get the latest live with Bloomberg Steve Rappaport's Steve Good Morning.
Speaker 2: Good Morning, Karen and Nathan. On the eve of opening statements,
Speaker 2: Judge Eric Davis announced a one day delay.
Speaker 9: To the trial.
Speaker 2: Sources tell The Wall Street Journal. The move is to
Speaker 2: allow the parties more time to reach a settlement dominion,
Speaker 2: says guests on Fox News shows repeatedly accused the company
Speaker 2: of rigging its voting machines in the twenty twenty election
Speaker 2: to switch votes from President Trump to Joe Biden. Fox
Speaker 2: News is expected to argue it has the right to
Speaker 2: report claims from a sitting president and his lawyers, even
Speaker 2: if those claims later turn out to be false. Live
Speaker 2: in New York, I'm Steve Rappaport Bloomberg Daybreak.
Speaker 3: All right, Steve, Thanks, also have a couple of deals
Speaker 3: to kick off the week on Wall Street. The first
Speaker 3: involves pharmaceutical giant Merk, and we get the details live
Speaker 3: with Bloomberg's John Tucker, John.
Speaker 9: And ninth And it's one of the largest pharm of
Speaker 9: deals in recent history. Murk is buying Prometheus Biosciences. The
Speaker 9: price tag about ten point eight billion dollars. That works
Speaker 9: out to two hundred dollars a share, a whoppings seventy
Speaker 9: five percent more than Friday's closing price. Although they have
Speaker 9: no approved drugs, Prometheus has some promising treatments in immunology.
Speaker 9: A merksman looking to beef up its business because some
Speaker 9: of its key drugs are coming off patent. In fact,
Speaker 9: fifty five billion dollars worth of its sales are at
Speaker 9: risk over the next seven years. Let's deal expected to
Speaker 9: wrap up in the third quarter. Patent expirations are driving
Speaker 9: M and A activity across the pharma sector, so this
Speaker 9: probably won't be the last deal you're going to hear about.
Speaker 9: Live in New York. I'm John Tucker, Bloomberg Daybreak.
Speaker 1: All right, John, thanks well shareholders of the creator of
Speaker 1: Angry Birds or anything but Angry. This morning, the company
Speaker 1: Rovio up about eighteen percent after video game maker Sega
Speaker 1: Sammy Holdings offered to buy the finished company for seven
Speaker 1: hundred and seventy six million dollars. Nobio's board unanimously recommended
Speaker 1: shareholder except shareholders U. Rovio's board unanimously recommended shareholders accept
Speaker 1: the offer.
Speaker 3: It's staying in Europe. Karen Word of job cuts at Barclay's.
Speaker 3: Bloomberg News has learned the London based lender will eliminate
Speaker 3: a one hundred roles in its investment banking group. The
Speaker 3: cuts come as a slow down in deal making and
Speaker 3: capital markets businesses continues at Barclay's and.
Speaker 1: We're seemore falla from the historic deal between Credit Suite
Speaker 1: and UBS. The Wall Street Journal reports outflows from Credit
Speaker 1: Suite branded investment funds have accelerated in the week since
Speaker 1: the takeover. The paper says net outflows from around three
Speaker 1: hundred funds have reached five point six billion dollars since
Speaker 1: the tie up.
Speaker 3: Back here in the US, Careen, the CEO of Google
Speaker 3: is speaking out about artificial intelligence. Alphabet Sundar Paschai says
Speaker 3: the push to adopt AI technology must be well regulated
Speaker 3: to avoid potential harmful effects.
Speaker 10: The pace at which we can think can adapt as
Speaker 10: societal institutions compared to the pace at which the technology
Speaker 10: is evolving, there seems to be a mismatch. On the
Speaker 10: other hand, compared to any other technology, I've seen more
Speaker 10: people worried about it earlier in its life cycle, so
Speaker 10: I feel optimistic.
Speaker 3: Alphabet sud Dar Paschai made the comments on sixty Minutes
Speaker 3: from CBS our Washington. Listeners can catch the show Sunday
Speaker 3: Nights on Bloomberg ninety nine to one.
Speaker 1: Another tech news. This morning, Apples sales in India had
Speaker 1: a new high, reaching almost six billion dollars for the
Speaker 1: year through March. Sources say revenue in India grew by
Speaker 1: nearly fifty percent from the prior year. This search highlights
Speaker 1: the market's increasing importance for the iPhone maker, as CEO
Speaker 1: Tim Cook arrives in the country to open its first
Speaker 1: local stores.
Speaker 3: Finally, Karen, Netflix is apologizing to its customers this morning.
Speaker 3: The service buckled under the strain of popular live streamed
Speaker 3: reunion episode of Love is Blind. Down detector says thousands
Speaker 3: of users reported Netflix streaming was unavailable yesterday. Straight ahead,
Speaker 3: we'll get your latest local headline, Santa Check of sports.
Speaker 3: This is Bloomberg. It is fifty five degrees in New York.
Speaker 3: Should have some partial clearing this afternoon with Heisenem for sixties.
Speaker 3: We'll get down to the low fifties tonight under a
Speaker 3: partly cloudy sky. Time now to look at some of
Speaker 3: the other stories making news in New York and around
Speaker 3: the world. For that, we're joined by Bloomberg's Michael Barr.
Speaker 3: Good morning, Michael, Good morning, Nathan Als.
Speaker 4: Republicans are holding a hearing in Manhattan today targeting District
Speaker 4: Attorney Alvin Bragg, the chair of the House Judiciary Committee.
Speaker 4: Ohio Republican Jim Jordan scheduled the hearing at the Javit Center,
Speaker 4: accusing brag of interfering in the twenty twenty four election
Speaker 4: with the prosecution of former President Trump. However, Senate Majority
Speaker 4: Leader Chuck Schumer says the real threat to New Yorker's
Speaker 4: safety is a call by Jordan and Trump to defund
Speaker 4: the FBI and police Department.
Speaker 11: Every member in the House and Senate Democrat, Republican, liberal
Speaker 11: conservative should denounce such attempts by former President Trump and
Speaker 11: his allies to degrade public trust in our law enforcement
Speaker 11: agencies out of personal peak and grievance.
Speaker 4: Schumer calls Jordan's hearing a political stunt. Today, authorities in
Speaker 4: one Alabama town are asking for the public's help to
Speaker 4: make an arrest in another mass shooting. It happened over
Speaker 4: the weekend at a birthday party in Dadeville. At least
Speaker 4: four people were killed and more than two dozen injured.
Speaker 4: Sudan's embattled capital faces a third day of heavy fighting
Speaker 4: between the army and a power full rival force were
Speaker 4: control of the country. The weekend civilian death toll in
Speaker 4: Khartom has risen to around one hundred. Secretary of State
Speaker 4: Anthony Blincoln says there is a shared deep concern about
Speaker 4: the fighting.
Speaker 12: We're also closely in touch with any American citizens INSIDAM
Speaker 12: to make sure that those who are registered with the
Speaker 12: embassy and that we're actually in contact with get all
Speaker 12: the information they can about how to remain sales secure.
Speaker 4: Secretary Blinken spoke of the G seven Foreign Ministries meeting
Speaker 4: in Japan. The countdown is onto this morning's launch of
Speaker 4: the tallest rocket ever built. Elon Musk's SpaceX is preparing
Speaker 4: to launch Starship, the most powerful rocket ever built, into space.
Speaker 4: After thirty five years, Broadway's longest running show has taken
Speaker 4: its final bow. After nearly fourteen thousand performances, Phantom of
Speaker 4: the Opera bid it farewell. Sunday. The last curtain call
Speaker 4: brought out not just cast, crew and musicians, but the
Speaker 4: original Broadway company and Andrew Lloyd Ubber himself.
Speaker 12: He couldn't go.
Speaker 1: Out with the best of conformance was bord to Christi.
Speaker 4: Fandom won seven tony awards including Best Musical. Global News
Speaker 4: twenty four hours a day, powered by more than twenty
Speaker 4: seven hundred journalist and analysts and over one hundred and
Speaker 4: twenty countries. Michael Barr, this is Bloomberg ninth.
Speaker 3: And it's still there inside your mind. Thank you, Michael,
Speaker 3: Thank you. After the Bloomberg Sports up date. Good morning,
Speaker 3: John Stanshall by Nathan NBA playoffs just getting started. Everyone's
Speaker 3: played once already. Injuries are looming large.
Speaker 5: Milwaukee had the best regular season record, but the Bucks
Speaker 5: lost Game one to Miami. Had to play most of
Speaker 5: the way without Yanna's son to the Company's got a
Speaker 5: bad back. They say the x rays were clean and
Speaker 5: the heat also saw a key player go down in
Speaker 5: this game, Tyler Hero broke his hand and Memphis John
Speaker 5: Moran left with a hand injury. Those x rays were negative.
Speaker 5: Grizzlies lost only six times all season. They lost to
Speaker 5: the Lakers. The Clippers won in Phoenix, easy for Denver.
Speaker 5: The Nets have game two tonight in Philadelphia. It's also
Speaker 5: opening night in the Stanley Cup playoffs. The Islanders visit Carolina.
Speaker 5: Speaking of injuries, another one for Yankees slugger John Carlos
Speaker 5: Stantony's got a hamstring injury, expecting to miss at least
Speaker 5: a month.
Speaker 6: Here's Aaron Bruce.
Speaker 13: I know he's he's really frustrated, but you know it's
Speaker 13: it's opportunity now, it's opportunity for frankly people. We have
Speaker 13: a lot of confidence in that we can mix and match.
Speaker 13: We're gonna get some other people back here and then
Speaker 13: in the next days, in the next couple of weeks,
Speaker 13: and uh, you know, we gotta make.
Speaker 5: Do Yankees off. Tonight before welcoming in the Angels, they
Speaker 5: gained us one of the four game series of the Twins,
Speaker 5: winning two nothing at the stadium thanks to Garrett Cole
Speaker 5: complete game two hit or ten strike ass. Cole's already
Speaker 5: four to zero. His era is under one. Mett's visited
Speaker 5: the Dodgers tonight. They completed a sleep in Oakland, winning
Speaker 5: four to three and ten names. Peter Wonzo a game
Speaker 5: time home run of the ninth and he already is
Speaker 5: eighth of the season. Matt Fitzpatrick is a brit who
Speaker 5: has a kid vacationed every year at Hilton Had he
Speaker 5: won the heritage It's fine to the playoff with Jordan Speed,
Speaker 5: John Stash that Bloomberg Sports.
Speaker 6: Live from coast to coast, from New York to San Francisco,
Speaker 6: Boston to Washington, d C. Nationwide on SIRIUSXAM, the Bloomberg
Speaker 6: Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 6: Good morning, I'm Nathan Hager. Stocks are getting off to
Speaker 6: a relatively quiet start this morning. We'll see whether that
Speaker 6: continues as we make our way further into first quarter
Speaker 6: earning season.
Speaker 3: So let's get you set for the trading week ahead.
Speaker 3: We are joined this morning by Lori Calvacina, head of
Speaker 3: US Equity Strategy at RBC Capital Markets. Laurie, it's always
Speaker 3: great to speak with you, and we have seen stocks
Speaker 3: do relatively well so far this year. Where do you
Speaker 3: see the momentum going for equities?
Speaker 14: Well, thanks for having me. As always, look, we think
Speaker 14: it's going to continue to be a choppy environment this year.
Speaker 14: I do think the bears have really, you know, sort
Speaker 14: of overstated their case. I probably see more upside risk
Speaker 14: than downside risk, but we have been training right around
Speaker 14: forty one hundred target. I don't see anything really eminent
Speaker 14: that would derail us. We'll see what happens in this
Speaker 14: reporting season. We are watching Nasdaq futures positioning pretty closely
Speaker 14: as a potential short term cell catalyst. But I think
Speaker 14: investors just need to get ready for what is likely
Speaker 14: to be not as bad as what some of the
Speaker 14: bears are saying, but just a chopping environment for the
Speaker 14: duration of the year.
Speaker 3: Now, the bears have been pretty loud. We've heard once
Speaker 3: again from Mike Wilson, probably the biggest bear on Wall
Speaker 3: Street over at Morgan Stanley saying there needs to be
Speaker 3: more earnings down grades. Why do you think the bears
Speaker 3: have overstated their case? What's your case?
Speaker 14: Well, look, I think it really all goes back to
Speaker 14: how close are you looking at the history of how
Speaker 14: markets trade around Earning's downgrade cycled. And I think the
Speaker 14: bear case has largely rested on the idea of, hey,
Speaker 14: earnings expectations are way too high. We think the number
Speaker 14: is going to be lower, therefore markets need to come
Speaker 14: down and retest the low. And I think that's just
Speaker 14: overly simple, and I don't think it really has an
Speaker 14: appropriate view of how Earning's grade cycles have impacted stock
Speaker 14: prices in the past. If you go back historically, what
Speaker 14: we have seen very consistently is that three to six
Speaker 14: months before earning downgrade cycles are done, stock markets tend
Speaker 14: to put in their bottom and I really shouldn't even
Speaker 14: use the word ten, because that's what always tends to happen,
Speaker 14: or actually always does happen in these major downgrade cycles.
Speaker 14: We've gone back looking at this over several decades. The
Speaker 14: other thing we've seen is that if you look at
Speaker 14: the price action in the S and P five hundred
Speaker 14: last year, and price action does loosely tend to follow earnings,
Speaker 14: but around major inflections, stock prices do tend to lead earnings.
Speaker 14: And when we compare how the stock price is acted
Speaker 14: to what the earnings expectations are for this year, both
Speaker 14: consensus and my well below consensus number, the price action
Speaker 14: reflects a more onerous earnings environment than even what I'm
Speaker 14: anticipating with my two hundred number. And then the last
Speaker 14: thing I would say, if you look at earning downgrade cycles,
Speaker 14: you tend to get the cuts in largely by the
Speaker 14: April May timeframe. In the SMP and the small caps,
Speaker 14: it tends to be more like May June. But really
Speaker 14: this is the little reporting season where the numbers do
Speaker 14: need to get cleaned up. Cell Grant the bears that
Speaker 14: for that market bottom back in October to hold. So
Speaker 14: I think it all goes back to the idea of
Speaker 14: what is baked into stocks, and stocks already baked in
Speaker 14: a pretty onerous earnings environment last year, and that's always
Speaker 14: what they do in these downgrade cycles.
Speaker 3: How do you read what we've heard from the big
Speaker 3: banks so far? As we've just gotten earning season kicked
Speaker 3: off here by JP Morgan, Chase, Wells Fargo, and City Group,
Speaker 3: do you see the momentum continuing for them?
Speaker 14: So look, it's very very early in the financials reporting season.
Speaker 14: And you know, I will say, if you look at
Speaker 14: the BKX performance, and we've been watching it very closely
Speaker 14: relative to the Nasdaq one hundred performance, it does look
Speaker 14: like it is trying to stabilize. So I think the
Speaker 14: market is looking for an excuse to have some good
Speaker 14: reaction to these earnings numbers. And you know, I think
Speaker 14: Friday ended up being a little bit weaker than perhaps
Speaker 14: the headlines from the banks themselves would have suggested.
Speaker 5: My read.
Speaker 14: And again I'm not a banks jannalyst, I'm a strategists.
Speaker 14: I'm looking more for macro clues. But I was comforted
Speaker 14: by the fact that we saw one of the banks
Speaker 14: saying they weren't going to unreasonably tighten in here because
Speaker 14: of past events. I thought there was a lot of
Speaker 14: focus on regulation, which I think is appropriate. I think
Speaker 14: that's a longer term issue that banks have to contend with.
Speaker 14: But generally, if we look back over the last couple
Speaker 14: of weeks, what companies are telling us, not just in
Speaker 14: the banks but elsewhere, was that the sort of impact
Speaker 14: from the recent events in banking has been pretty limited.
Speaker 14: So far, we aren't seeing an overly alarmist tone from companies.
Speaker 14: We're seeing more echoes of what we saw in the
Speaker 14: Duke CFO survey a couple of weeks ago, where corporate
Speaker 14: sentiment was actually improving prior to the SBB crisis. So
Speaker 14: I think it's going to be really important to watch
Speaker 14: the tone from here. I don't think we can read
Speaker 14: too much from Friday. I think we were off to
Speaker 14: a good start. Would have liked to have seen a
Speaker 14: slightly better stock market reaction, but I think in general,
Speaker 14: the idea that this was a contained crisis, I think
Speaker 14: that is bearing out.
Speaker 3: Just about thirty seconds left in this segment, Laurie, so
Speaker 3: do you think that the worst is over then for
Speaker 3: the banking turmoil.
Speaker 14: I think that's that's what the market is telling us
Speaker 14: right now, and I think that's the vote of confidence
Speaker 14: we're seeing in the stabilization. In that VKX performance. We've
Speaker 14: actually started to see a little bit of underperformance from the
Speaker 14: NASDAT complex again, and that tells the investors are starting
Speaker 14: to worry about the set again, which can only happen,
Speaker 14: you know, if the Fed feels confident enough to go.
Speaker 3: This is Bloomberg day Break Today, your morning brief on
Speaker 3: the stories making news from Wall Street to Washington and beyond.
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