WEBVTT - Bloomberg Daybreak: July 11, 2022 - Hour 2 (Radio) 0:00:02.960 --> 0:00:06.240 Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:06.280 --> 0:00:09.880 Daybreak for Monday, July eleven two. Coming up this shour, 0:00:10.119 --> 0:00:13.800 Twitter shares plunge after Elon Musk ends his takeover bid. 0:00:13.960 --> 0:00:16.000 Now the future of Twitter appears to be headed for 0:00:16.079 --> 0:00:19.200 a courtroom. Bank earnings and a key inflation report grabbed 0:00:19.200 --> 0:00:21.160 the spotlight on Wall Street this week, and the race 0:00:21.239 --> 0:00:24.520 to succeed Boris Johnson as UK Prime Minister heats up. 0:00:24.640 --> 0:00:27.800 Steve Bennon's attorneys saying he is now willing to testify 0:00:28.000 --> 0:00:31.480 before the January sixth House Committee plus Senate Majority Leader 0:00:31.560 --> 0:00:35.880 Schumer asked COVID, I'm Michael blom More ahead stashon sports 0:00:35.880 --> 0:00:37.880 the Yankees for a second night in the Roade. Bloom 0:00:37.920 --> 0:00:39.960 Lee lost to the Red Sox in Boston, the Mets 0:00:39.960 --> 0:00:44.720 were shut out. They visit the Braves tonight. That's all 0:00:44.800 --> 0:00:48.400 straight Ahead on Bloomberg day Break on Bloomberg eleven three 0:00:48.400 --> 0:00:52.640 on New York, Bloomberg one, Washington, d C, Bloomberg one 0:00:52.680 --> 0:00:56.880 oh six one, Boston, Bloomberg nine sixties and Francisco Sirius 0:00:57.040 --> 0:01:00.360 XM one nineteen and around the world on Bloomberg Radio 0:01:00.440 --> 0:01:08.000 Dot com and via the Bloomberg Business App. Good morning, 0:01:08.000 --> 0:01:11.120 I'm Nathan Hager and I'm Karen Moscow. US DOT Index 0:01:11.240 --> 0:01:13.920 futures are lower this morning. We are coming up to 0:01:14.000 --> 0:01:15.800 six oh one on Wall Street. I mean check the 0:01:15.800 --> 0:01:18.760 markets every fifteen minutes throughout the trading day on Bloomberg. 0:01:18.920 --> 0:01:21.640 S and P futures down twenty four points now, Future's 0:01:21.640 --> 0:01:24.600 down a hundred fifty five and nownsday futures down one hundred. 0:01:24.800 --> 0:01:27.600 Chew ten year treasury up to thirty seconds, you know, 0:01:27.640 --> 0:01:29.760 three point oh seven percent and a yield on the 0:01:29.800 --> 0:01:33.000 two year three point oh eight percent and nine x 0:01:33.040 --> 0:01:35.240 screwde oil is down two and a quarter percent on 0:01:35.360 --> 0:01:38.000 two dollars thirty eight cents at a hundred two dollars 0:01:38.040 --> 0:01:40.680 forty cents of barrel. Nathan and Karen, We continue to 0:01:40.680 --> 0:01:43.200 watch shares of Twitter this morning. They are down seven 0:01:43.200 --> 0:01:46.520 percent in early trading as the show down between Elon 0:01:46.640 --> 0:01:50.080 Musk and the social media company appears headed for court. 0:01:50.360 --> 0:01:53.320 Let's get the latest live from Bloomberg's Rnita Young. Good morning, Grenita, 0:01:53.360 --> 0:01:56.320 Good morning Nathan. Even though Elon Musk is backing out 0:01:56.320 --> 0:01:58.800 of the forty four billion dollar deal to buy Twitter 0:01:58.880 --> 0:02:02.440 after all, he can't just walk away without a court case, 0:02:02.840 --> 0:02:05.320 and Twitter has lawyered up in a race to sue 0:02:05.440 --> 0:02:08.160 Musk to follow through on his end of the agreement. 0:02:08.520 --> 0:02:11.280 Bloomberg sources say a filing could come as soon as 0:02:11.280 --> 0:02:14.400 early this week. Now. If the judge rules against Musk, 0:02:14.480 --> 0:02:17.520 he could be forced to pay Twitter shareholders fifty four 0:02:17.560 --> 0:02:20.160 dollars and twenty cents of share, But a ruling in 0:02:20.280 --> 0:02:23.480 his favor would let Musk walk, although he'd probably have 0:02:23.600 --> 0:02:26.399 to pay a one billion dollar breakup fee. And there's 0:02:26.440 --> 0:02:29.320 also the prospect that both sides could reach a settlement 0:02:29.400 --> 0:02:32.520 where Musk still makes the acquisition, but potentially at a 0:02:32.520 --> 0:02:35.440 lower price. Live in New York, I'm renned a young 0:02:35.520 --> 0:02:37.760 Bloomberg daybreak a right need to thank you about the 0:02:37.760 --> 0:02:41.320 Twitter news is also impacting another stock this morning, Shares 0:02:41.360 --> 0:02:43.840 of Digital World Acquisition or up more than twenty four 0:02:43.919 --> 0:02:47.239 percent on heavy volume in early trading. Digital World is 0:02:47.280 --> 0:02:50.440 the company merging with former President Trump's Trump Media and 0:02:50.440 --> 0:02:54.280 Technology Group, which owns his Truth social platform. Well stocks 0:02:54.320 --> 0:02:57.000 overall Karen are lower as we begin this new trading week. 0:02:57.080 --> 0:02:59.920 In Asia, overnight, a resurgence of COVID flare ups led 0:03:00.000 --> 0:03:02.480 to a drop of almost three percent for Hong Kong's 0:03:02.480 --> 0:03:05.480 Hang Sang index. Let's get the recap from Bloomberg day Break, 0:03:05.520 --> 0:03:10.000 Asia anchor Bran Curtis. Most Asian benchmark slid COVID cases 0:03:10.040 --> 0:03:13.680 in Shanghai arising as the city faces more mass testing. 0:03:14.120 --> 0:03:17.720 In Macau, authorities shut down casinos and other businesses for 0:03:17.800 --> 0:03:21.880 a week. As a result, casino shares took a big hit. Tokyo, though, 0:03:22.000 --> 0:03:24.160 was a bright spot after the ruling coalition won a 0:03:24.200 --> 0:03:27.720 stronger majority in the upper House election. The end was 0:03:27.760 --> 0:03:31.400 the weakest. Major currency treators see the election result as 0:03:31.440 --> 0:03:35.960 an endorsement of Japan's ultra easy monetary policy in Hong Kong. 0:03:36.000 --> 0:03:38.720 Brian Curtis, Bloomberg day Break, All right, Brian, thank you all. 0:03:38.760 --> 0:03:41.120 Back here in the US, we have conflicting calls this 0:03:41.200 --> 0:03:44.360 morning on whether the recent stock rally will continue. Morgan 0:03:44.440 --> 0:03:47.800 Stanley Chief US equity strategist Mike Wilson says it won't. 0:03:48.160 --> 0:03:50.160 He thinks that surge in the dollar will be a 0:03:50.240 --> 0:03:53.440 headwind for corporate profits. On the flip side, city grip 0:03:53.480 --> 0:03:56.240 strategists say stocks are likely to rally in the second 0:03:56.240 --> 0:03:59.720 half as corporate earnings remain resilient to surging inflation and 0:03:59.760 --> 0:04:03.120 slow going economic growth. The SMP five hunturdays up about 0:04:03.160 --> 0:04:06.560 six percent since it's mid June low Well. Speaking of earnings, Karen, 0:04:06.640 --> 0:04:09.200 reporting season gets underway this week as we hear from 0:04:09.200 --> 0:04:11.040 the country's biggest banks, and we get more on that 0:04:11.080 --> 0:04:15.360 from Bloomberg's Charlie Pellett. The question on everyone's mind is 0:04:15.360 --> 0:04:18.719 is a recession coming and what clues will the latest 0:04:18.760 --> 0:04:22.240 batch of earnings reports provide. Scott croner To is a 0:04:22.279 --> 0:04:25.599 strategist at City Group Global Markets. What we're expecting to 0:04:25.640 --> 0:04:27.760 see is a follow through of the earnings the nurse 0:04:27.960 --> 0:04:29.960 we got in Q one, so we're looking for mid 0:04:30.000 --> 0:04:32.960 single digit earnie shorts for the SMP in total we 0:04:33.040 --> 0:04:37.520 think will make the Q two expectations. Certainly C suites 0:04:37.560 --> 0:04:41.680 will express caution regarding the second half outlook. Wall Street 0:04:41.680 --> 0:04:45.200 Banks leadoff second quarter earnings JP. Morgan Chase and Morgan 0:04:45.320 --> 0:04:50.120 Stanley report Thursday, City Group and Wells Fargo on Friday 0:04:50.160 --> 0:04:53.600 in New York. Charlie Pellett bloom Bird Day Break. All right, Charlie, 0:04:53.600 --> 0:04:55.560 thank you all. On the economic front this week, it's 0:04:55.560 --> 0:04:59.799 all about inflation with readings coming on consumer and producer prices. 0:04:59.839 --> 0:05:03.120 We a preview from Bloomberg's Vinnie Down judea Ice. June's 0:05:03.160 --> 0:05:06.400 household inflation rate probably ran close to nine percent based 0:05:06.400 --> 0:05:10.320 on Wall Street forecast. That's taking a toll, Bloomberg Economics 0:05:10.440 --> 0:05:13.000 is average hourly earnings have been shrinking for more than 0:05:13.040 --> 0:05:16.160 a year when taking inflation into account. Look for that 0:05:16.200 --> 0:05:19.040 trying to drag on with the household inflation rate projected 0:05:19.080 --> 0:05:21.760 to run at or above seven percent through year end. 0:05:22.160 --> 0:05:25.000 We'll get the consumer price index Wednesday, as well as 0:05:25.120 --> 0:05:28.720 data on producer prices Thursday and import prices Friday. Vinny 0:05:28.800 --> 0:05:31.160 del Judace bloom birthday break. All right, Vinny. Thanks So. 0:05:31.200 --> 0:05:34.320 When it comes to tackling inflation, the Biden administration's thinking 0:05:34.320 --> 0:05:37.240 about lowering tariffs on some Chinese imports is one way 0:05:37.240 --> 0:05:40.080 to provide relief. President Biden says he is still holding 0:05:40.080 --> 0:05:43.919 discussions on the idea. Commerce Secretary Gina Rimando expects a 0:05:43.960 --> 0:05:47.560 decision from the President shortly. If he decides to lift 0:05:47.600 --> 0:05:50.800 certain tariffs, it will be because he knows he has 0:05:50.839 --> 0:05:54.039 to think about doing everything he possibly can to provide 0:05:54.080 --> 0:05:57.440 any relief to consumers. Secretary Rimando made that comment on 0:05:57.560 --> 0:06:00.520 NBC's Meet the Press, heard Sundays on bloom Burg Radio. 0:06:00.720 --> 0:06:03.880 Stay tuned for more from the Commerce Secretary. Today, Gina 0:06:03.960 --> 0:06:06.560 Raimondo sits down with Bloomberg Radio and Television for an 0:06:06.560 --> 0:06:09.360 interview coming up in the eleven am Eastern hour. Well 0:06:09.360 --> 0:06:11.760 in Europe this week, Nathan the races heating up to 0:06:11.800 --> 0:06:15.000 succeed Boris Johnson as British Prime Minister. We got to 0:06:15.080 --> 0:06:17.040 London and get the latest with the Bloomberg's You and 0:06:17.160 --> 0:06:19.880 Pat's good Morning You and good Morning Carden Nathan. Just 0:06:20.040 --> 0:06:22.880 days after Bois Johnson was pushed into resigning, there are 0:06:22.920 --> 0:06:27.000 now eleven candidates to succeed him as Conservative Party leader. 0:06:27.360 --> 0:06:29.800 This trust the Foreign Secretary is the latest end of 0:06:29.800 --> 0:06:33.039 the race. She's making tax cuts the hearts of her campaign. 0:06:33.360 --> 0:06:36.160 Lomakers were expected to begin voting later this week as 0:06:36.200 --> 0:06:39.640 the field is narrow to the final two candidates, one 0:06:39.680 --> 0:06:42.599 of them will become the UK's next Prime minister. In London, 0:06:42.600 --> 0:06:44.359 I'm you in parts between Boat Daybreak, all are you 0:06:44.400 --> 0:06:46.479 and thank you? Let's stay in Europe or natural gas 0:06:46.480 --> 0:06:49.320 prices are falling. The move comes after Canada said it 0:06:49.360 --> 0:06:52.200 would return a stranded turbine from the nord Stream pipeline 0:06:52.240 --> 0:06:55.680 between Russia and Germany. That could potentially increase flows which 0:06:55.680 --> 0:06:58.640 have been limited since last month. The Nord Stream pipeline 0:06:58.640 --> 0:07:02.360 between Russia and Germany's currently undergoing routine maintenance. At the 0:07:02.400 --> 0:07:05.040 same time, the war in Ukraine is sparking concerned that 0:07:05.080 --> 0:07:08.359 maybe Moscow will not open the pipeline back up after 0:07:08.400 --> 0:07:11.360 the work. S andp futures are down twenty one point, 0:07:11.400 --> 0:07:14.119 Staff futures down a hundred thirty eight. Nasdaq futures lowered 0:07:14.120 --> 0:07:17.120 by eighty eight points. Straight ahead your latest local headlines 0:07:17.160 --> 0:07:23.440 and a check of sports. This is Bloomberg at six 0:07:23.480 --> 0:07:25.760 o seven on Wall Streets, still sixty seven degrees in 0:07:25.760 --> 0:07:28.480 Central Park. Still dealing with that crash on northbound FDR 0:07:28.560 --> 0:07:31.360 Drive at seventy nine. Details coming up in traffic First 0:07:31.440 --> 0:07:33.720 Michael Barr with details on what else is happening in 0:07:33.760 --> 0:07:36.120 New York and around the world. Michael, thank you very much. 0:07:36.200 --> 0:07:39.400 Nathan Donald Trump's one time adviser, Steve Bennan, has agreed 0:07:39.440 --> 0:07:42.600 to testify to the House committee investigating last year's storming 0:07:42.640 --> 0:07:46.000 of the US Capitol. It comes after former President Trump 0:07:46.040 --> 0:07:49.280 says he waived executive privilege even though Bannon was a 0:07:49.280 --> 0:07:52.360 private citizen at the time of the Capitol riot, Trump 0:07:52.400 --> 0:07:56.480 portrays the inquiry as biased and one sided. Loyola Law 0:07:56.600 --> 0:08:00.360 University professor Lori Levinson says, though the value of Bannon's 0:08:00.400 --> 0:08:03.680 testimony remains to be determined, the real problem is that 0:08:03.760 --> 0:08:06.360 I'm not sure that they can trust Bannon at all. 0:08:07.000 --> 0:08:11.240 It is clear that he and Trump still considered themselves 0:08:11.320 --> 0:08:14.320 best friends, and that if Banning comes in front of 0:08:14.320 --> 0:08:17.960 the committee, it is very unclear what he would say 0:08:18.000 --> 0:08:21.520 that would help their investigation. But isn't just designed to 0:08:21.640 --> 0:08:25.920 help Trump? Loyola Law professor Laurie Levinson. The car pooling 0:08:25.960 --> 0:08:29.000 discount is over at the George Washington Bridge. The d 0:08:29.240 --> 0:08:33.360 WB went cashless tolls over the weekend. Normally, it's the 0:08:33.440 --> 0:08:35.880 sixteen dollar fee one way to get across the bridge 0:08:36.080 --> 0:08:39.000 from New Jersey to New York, but drivers who had 0:08:39.000 --> 0:08:42.840 a car pool discount plan on their easy passes paid 0:08:42.920 --> 0:08:45.800 only seven dollars shifty cents with three or more people 0:08:45.800 --> 0:08:48.840 in the vehicle. Officials hope going cash less at the 0:08:48.880 --> 0:08:51.880 g WB will meet a faster commute into the city. 0:08:52.000 --> 0:08:54.360 New York City is debuting a fleet of cars mounted 0:08:54.400 --> 0:08:57.200 with air quality sensors in the Bronx in Manhattan this week. 0:08:57.520 --> 0:09:00.280 The plan is to address air pollution. A try Magic 0:09:00.360 --> 0:09:04.360 car accident stat Niland has left three teenagers dead. They 0:09:04.400 --> 0:09:06.880 were in a red Ford Mustang when their car collided 0:09:06.920 --> 0:09:10.360 with a turning SUV in Tottonville last night. The Mustang 0:09:10.400 --> 0:09:13.160 was split and half. New York City Mayor Eric Adams 0:09:13.280 --> 0:09:16.199 was on the scene of the crash. Overnight, Japanese Prime 0:09:16.200 --> 0:09:19.079 Minister fumi Yo Kashita has met with U S Secretary 0:09:19.080 --> 0:09:22.680 of State Anthony Lincoln. He delivered condolences from President Biden 0:09:22.720 --> 0:09:26.040 and the United States over the assassination of former leader 0:09:26.120 --> 0:09:29.880 Shinzo Abe and reassurances of a strong bide lateral alliance. 0:09:30.080 --> 0:09:32.960 I thought it was just important to show our solidarity 0:09:33.080 --> 0:09:36.839 with our friend Japan and the Japanese people in this 0:09:36.920 --> 0:09:41.560 difficult time. Secretary b Lincoln. Senate Majority leader Chuck Schumer's 0:09:41.600 --> 0:09:44.679 office says that he has tested positive for COVID nineteen. 0:09:45.120 --> 0:09:49.520 Schumer spokesman says the Senator is experiencing mild symptoms. Global 0:09:49.559 --> 0:09:51.920 News twenty four hours a day on air and on 0:09:51.960 --> 0:09:55.440 Bloomberg Quicktake, powered by more than twenty seven hundred journalist 0:09:55.480 --> 0:09:58.120 and analysts more than a hundred twenty countries. Michael bar 0:09:58.320 --> 0:10:05.480 this is Bloomberg, Nathan, Thanks Nael. Has it come up 0:10:05.520 --> 0:10:07.640 to six ten on Wall Street? We check Bloomberg Sports 0:10:07.640 --> 0:10:10.240 of John Sesshire. Thanks Nathan. Twenty four hours after the 0:10:10.360 --> 0:10:13.240 rare occurrence of a Yankees blown lane, it happened again. 0:10:13.400 --> 0:10:16.040 Yanks lad the Red Sox for nothing later six to two. 0:10:16.080 --> 0:10:19.319 The Socks scored the last nine runs and one eleven 0:10:19.360 --> 0:10:21.040 six to game a split of the four game series 0:10:21.040 --> 0:10:23.760 in Boston. A J. D. Martinez home run fifteningen off 0:10:23.840 --> 0:10:26.600 Jamison Tai untied the game at six. A Trevor's story 0:10:27.040 --> 0:10:29.719 three run double off Miguel Castro and the seventh put 0:10:29.720 --> 0:10:31.960 it away. Yanks got home runs in defeat from John 0:10:32.000 --> 0:10:34.560 Fellow Stanton, yet another one from Matt Carpenter, but they 0:10:34.559 --> 0:10:36.840 were here by a couple of airs plus two catchable 0:10:36.920 --> 0:10:39.360 pop ups that d J Lemy who failed the drab. 0:10:39.440 --> 0:10:42.760 Yanks are off tonight. Mets tonight again their biggest series 0:10:42.760 --> 0:10:45.480 of the season. They are in Atlanta. It's Max Scherzer 0:10:45.559 --> 0:10:49.160 against the Braves, Max Freed. Mets couldn't score over ten innings, 0:10:49.240 --> 0:10:51.320 lost to the Marlins to to nothing. While Atlanta won 0:10:51.360 --> 0:10:53.640 in the twelfth inning, and the Mets lead, which was 0:10:53.679 --> 0:10:55.840 once ten and a half games, is now one and 0:10:55.880 --> 0:10:58.320 a half. Four Mets named to play next week's All 0:10:58.320 --> 0:11:01.040 Star Game in l a Edwin Diaz, Peter Alonzo, Jeff McNeil, 0:11:01.360 --> 0:11:04.040 and Starley Marked, and four Yankees were named Garrett Cole, 0:11:04.480 --> 0:11:07.559 Lefter Cortez, Clay Holmes, and Jose Dravino. Aaron Judge and 0:11:07.600 --> 0:11:10.400 John Carlos Stanton have already been named as starters. The 0:11:10.520 --> 0:11:13.199 year began for Novak Djokovic when he went to Australia 0:11:13.280 --> 0:11:16.320 and wasn't allowed to play due to being unvaccinated. He 0:11:16.400 --> 0:11:18.760 lost at the friend but he just won Wimbledon for 0:11:18.880 --> 0:11:21.240 the fourth grade term. I don't take anything for granted. 0:11:21.280 --> 0:11:24.040 I'm very blessed to be in this position, especially considering 0:11:24.040 --> 0:11:26.800 everything that that happened this year. At the beginning of 0:11:26.800 --> 0:11:29.959 the year, I just didn't feel emotionally. It's a good 0:11:29.960 --> 0:11:32.720 place for for several months, and it's kind of trying 0:11:32.760 --> 0:11:36.880 to find the serenity and uh, you know, the balance 0:11:36.920 --> 0:11:39.320 on and off the court and and and get get 0:11:39.320 --> 0:11:41.839 myself in a position to fight for big trop now 0:11:41.880 --> 0:11:44.480 twenty one career Grand Slam titles. That's one more than 0:11:44.600 --> 0:11:47.800 Roger Federer, one fewer than Raphael the Dap, John Dash Are, 0:11:47.800 --> 0:11:51.480 Bloomberg Sports, Nathan Greats All thank you, John SMP futures 0:11:51.480 --> 0:11:54.400 down twenty points, Staff futures down a twenty seven. NASDAC 0:11:54.480 --> 0:11:57.959 futures are lower by eighty five points. Twitter shares down 0:11:58.040 --> 0:12:02.120 almost seven percent in the re market, with Elon Musk's 0:12:02.160 --> 0:12:08.320 buyout deal potentially headed to court. Bloomberg eleven three oh 0:12:08.320 --> 0:12:11.560 weather sunshine today has eighty five degrees camber at an 0:12:11.559 --> 0:12:15.520 afternoon shower, thundershower tomorrow with a high near ninety sunshine 0:12:15.520 --> 0:12:18.600 and a high near ninety Wednesday. Right now sixty seven 0:12:18.600 --> 0:12:24.800 in Central Park markets. Headlines and breaking news twenty four 0:12:24.800 --> 0:12:27.800 hours a day at Bloomberg dot com, the Bloomberg Business 0:12:27.840 --> 0:12:31.520 Out and at Bloomberg Quick Tape, She's a Bloomberg business 0:12:31.600 --> 0:12:40.120 lash and I'm kart Moscow US stock index future is 0:12:40.280 --> 0:12:43.400 dropping this morning a lot with European shares as traders 0:12:43.400 --> 0:12:46.200 await the key second quarter earning season for indications and 0:12:46.240 --> 0:12:50.400 how companies are weathering. The inflation storem the dollar is higher, 0:12:50.520 --> 0:12:53.560 bonds gaining. We checked the markets every fifteen minutes Throughout 0:12:53.559 --> 0:12:56.160 the trading day on Bloomberg, Guess and p Future is 0:12:56.200 --> 0:12:58.600 down nineteen points and down futures at a hundred eighteen 0:12:58.679 --> 0:13:01.360 as day futures down eighty one the decks in Germany's 0:13:01.400 --> 0:13:04.320 down about seven tenths of a percent. Ten year treasury 0:13:04.360 --> 0:13:06.400 of three thirty seconds, you know, three point oh six 0:13:06.480 --> 0:13:09.880 percent yield on the two year three point oh seven percent. 0:13:10.280 --> 0:13:12.600 Ni Max screwed oil age down two point two percent, 0:13:12.640 --> 0:13:14.760 down two dollars twenty seven cents at a hundred two 0:13:14.760 --> 0:13:17.320 dollars fifty two cents of Barrel Co makes gold down 0:13:17.400 --> 0:13:20.320 half percent, or nine dollars at seventeen thirty three thirty 0:13:20.320 --> 0:13:23.320 announced the euro one point oh one oh six against 0:13:23.320 --> 0:13:25.680 the dollar, British found one point one nine four four 0:13:25.760 --> 0:13:28.320 and the En one thirty seven point oh seven, and 0:13:28.440 --> 0:13:31.160 bitcoin is down one point nine percent at twenty thousand, 0:13:31.240 --> 0:13:34.760 five hundred seventy dollars. Also watching Twitter shares down about 0:13:34.800 --> 0:13:38.040 seven percent after Elon must terminated his forty four billion 0:13:38.040 --> 0:13:41.120 dollar takeover approach. But the social media company, that's a 0:13:41.160 --> 0:13:43.800 Bloomberg business flash. Now here's Michael bar with more on 0:13:43.880 --> 0:13:46.600 what's going on around the world. Michael, thank you very 0:13:46.679 --> 0:13:49.599 much Cameron. Dozens of Ukrainian emergency workers are trying to 0:13:49.640 --> 0:13:52.480 pull people out of the rubble after a Russian rocket 0:13:52.520 --> 0:13:56.400 attack smashed into three apartment buildings in eastern Ukraine. At 0:13:56.480 --> 0:13:59.679 least eighteen people were killed. Former Trump White House try 0:13:59.760 --> 0:14:01.880 to just Steve Bennon says he is now willing to 0:14:01.880 --> 0:14:05.880 testify before the House committee investigating the January sixth assault 0:14:05.920 --> 0:14:09.439 on the Capitol. Bannon's attorneys says his client is willing 0:14:09.440 --> 0:14:13.600 to cooperate because the former president has rescinded his claim 0:14:13.640 --> 0:14:16.920 of executive privilege, even though Bannon was a private citizen 0:14:16.960 --> 0:14:19.600 at the time of the riot. In baseball, the Yankees 0:14:19.640 --> 0:14:22.040 lost to the Red Sox eleven six. The Mets lost 0:14:22.080 --> 0:14:25.080 along with the Nationals and A's. The Orioles won their 0:14:25.080 --> 0:14:28.520 eighth straight. The Giants won Global news twenty four hours 0:14:28.520 --> 0:14:31.800 a day on air and on Bloomberg Quick Take, powered 0:14:31.800 --> 0:14:34.480 by more than twenty seven hundred journalists and analysts more 0:14:34.480 --> 0:14:37.800 than a hundred twenty countries. Michael Barr and this is Bloomberg. 0:14:37.880 --> 0:14:40.440 Nathan Alright, Michael, thank you his six nineteen on Wall 0:14:40.480 --> 0:14:43.120 Street Life from the Bloomberg Interactive Broker Studios. This is 0:14:43.240 --> 0:14:46.520 Bloomberg Daybreak and his Karen mentioned Twitter shares are plunging 0:14:46.600 --> 0:14:49.920 in the pre market after testleas CEO Elon Musk pulled 0:14:49.960 --> 0:14:53.040 away from his forty four billion dollar bid to buy 0:14:53.120 --> 0:14:57.120 the social media network, but Twitter is threatening to pull 0:14:57.320 --> 0:15:00.720 him back in the form of a court battle. Let's 0:15:00.760 --> 0:15:03.720 get the latest on where this saga's headed. Bloomberg Tech 0:15:03.760 --> 0:15:07.720 reporter Aggie can Trill joins us this morning. Aggie, I 0:15:07.800 --> 0:15:10.480 know you've been following this for months now, ever since 0:15:10.880 --> 0:15:14.880 Elon Musk announced his bid back in April. Let's talk 0:15:14.920 --> 0:15:18.880 about where we're how we got from there, Elon Musk 0:15:18.960 --> 0:15:25.560 making this deal to here now in a dispute over bots. Yes, 0:15:25.680 --> 0:15:30.200 so essentially the twenty that he the deal was originally 0:15:30.320 --> 0:15:34.960 prices share that was back in April, and from then 0:15:35.400 --> 0:15:38.560 we've seen a lot of back and forth um with 0:15:38.920 --> 0:15:43.479 Elon Musk essentially pointing out that Twitter has not provided 0:15:43.680 --> 0:15:47.680 enough evidence of the amount of bots and spam accounts 0:15:47.800 --> 0:15:50.840 on the platform, and that he's under the impression that 0:15:50.920 --> 0:15:55.080 it's much higher than the percentage that Twitter says it is. Um. 0:15:55.280 --> 0:15:57.760 But then we're also looking at the fact that as 0:15:57.840 --> 0:16:02.600 this deal was struck, Musk has created this deal with 0:16:02.640 --> 0:16:05.600 Twitter very rapidly, much quicker than these sort of deals 0:16:05.760 --> 0:16:10.520 usually happen. Um, and he waived the due diligence that 0:16:10.560 --> 0:16:13.360 could have taken place um in which he could have 0:16:13.440 --> 0:16:16.240 asked for all of this information. And now he's backing 0:16:16.320 --> 0:16:20.160 out of the deal um in what has been described 0:16:20.200 --> 0:16:23.720 by quite a few commentators as buyas remorse. Well, what 0:16:23.840 --> 0:16:26.520 could this mean for Elon Musk? The fact that he 0:16:26.640 --> 0:16:30.760 didn't do this due diligence and now Twitter is threatening 0:16:30.920 --> 0:16:35.680 and potentially likely to bring him to Delaware Chancery Court 0:16:35.800 --> 0:16:40.080 to force him to consummate the deal. Yes, so essentially 0:16:40.360 --> 0:16:44.200 there is a reverse termination fee of a billion dollars 0:16:44.320 --> 0:16:49.920 that's baked into this agreement. UM. So that is expected. 0:16:50.040 --> 0:16:54.480 But it seems from what Twitter executives have been saying 0:16:54.880 --> 0:16:58.080 that their concern is essentially um that they will be 0:16:58.960 --> 0:17:01.200 wanting to either bring him back into the deal or 0:17:01.240 --> 0:17:04.040 be paying the full amount the forty four billion UM. 0:17:04.320 --> 0:17:07.640 And so it may be that um as that now 0:17:07.800 --> 0:17:11.399 we're seeing that Twitter is going to be engaging a 0:17:12.359 --> 0:17:15.919 very strong m and a team in order to force 0:17:16.680 --> 0:17:19.520 Elon Musk to pay a great deal more than that 0:17:19.640 --> 0:17:23.480 original termination fee. Or even be forced to buy the company. 0:17:23.960 --> 0:17:26.600 Is there a possibility, Aggie, that we could see some 0:17:26.760 --> 0:17:29.359 kind of settlement come out of this, or could Twitter 0:17:29.480 --> 0:17:34.760 be satisfied with Elon Musk taking the deal but potentially 0:17:34.800 --> 0:17:37.879 at somewhat of a lower rate. There seems to be 0:17:37.960 --> 0:17:41.840 speculation that there might be as a settlement that or 0:17:41.880 --> 0:17:44.760 at least discussions that are going on outside the court, 0:17:45.160 --> 0:17:49.719 while also UM the Twitter Twitter is looking at filing 0:17:50.119 --> 0:17:53.199 this agreement, this UM, this legal case in Delaware at 0:17:53.280 --> 0:17:55.680 the same time, UM, It's difficult to say at this 0:17:55.760 --> 0:17:58.560 point whether or not UM something can be settled out 0:17:58.600 --> 0:18:02.120 of court. But the different between the billion euros settlement, 0:18:02.440 --> 0:18:05.080 the billion euro termination fee, and the forty four billion 0:18:05.800 --> 0:18:08.679 billion dollars sorry, and the forty four billion dollar price 0:18:09.200 --> 0:18:12.760 UM that he originally plans to buy it for. There's 0:18:12.840 --> 0:18:15.800 something quite significant there. And there's also a potential that 0:18:16.040 --> 0:18:19.880 this is Elon must playing hardball. UM. He's gone back 0:18:19.920 --> 0:18:22.760 on agreement, the agreements in the past, and it could 0:18:22.800 --> 0:18:25.720 be that he going forward, he might actually be doing 0:18:25.800 --> 0:18:28.520 this in order to pressure the company to lower the price. 0:18:29.000 --> 0:18:32.720 From the analysts that you've been speaking to, Ague, where's 0:18:32.800 --> 0:18:35.800 the bigger burden of proof if this does go into 0:18:35.880 --> 0:18:39.400 a court battle in Delaware, Twitter proving that it's given 0:18:39.480 --> 0:18:42.720 the information, or Elon Must proving that there are more 0:18:42.840 --> 0:18:46.520 bots than Twitter has said it has. From what we've 0:18:46.560 --> 0:18:51.240 been seeing, it seems that um that Twitter is potentially 0:18:51.320 --> 0:18:54.320 well obviously not happy about what is happening. At the 0:18:54.400 --> 0:18:57.360 same time, it's potentially in a better legal position when 0:18:57.400 --> 0:19:02.320 it comes to taking Must to court because UMU. It 0:19:02.480 --> 0:19:05.760 seems that having waived the due diligence and also um 0:19:06.000 --> 0:19:10.000 having set the price beforehand and now pointing to issues 0:19:10.080 --> 0:19:12.399 such as the bots, um which seemed to be a 0:19:12.520 --> 0:19:14.680 reason in the first place that he was interested in 0:19:14.800 --> 0:19:17.200 taking on Twitter because it was something that he was 0:19:17.320 --> 0:19:20.600 keen to to get rid of on the platform, which 0:19:20.720 --> 0:19:23.560 was part of his original reasoning, it seems that maybe 0:19:24.359 --> 0:19:27.120 Twitter might be in a better legal position to push 0:19:27.160 --> 0:19:30.680 back on put Elon Musk pulling out of the deal. 0:19:31.320 --> 0:19:33.119 Thanks for this, Aggy, great having you on with us 0:19:33.200 --> 0:19:36.560 this morning. Aggie Cantrill, Bloomberg News Tech reporter with us 0:19:36.680 --> 0:19:40.160 as we continue to watch the Elon Musk Twitter buy 0:19:40.200 --> 0:19:44.320 out saga. On the news that Elon Musk is trying 0:19:44.359 --> 0:19:46.760 to pull out of the deal, Twitter shares this morning 0:19:46.840 --> 0:19:50.439 are down more than six percent at close to thirty 0:19:50.560 --> 0:19:53.800 four fifty a share. Right now, SMP futures are down 0:19:53.920 --> 0:19:57.320 sixteen points Down futures are down nineties six and Aztec 0:19:57.400 --> 0:20:01.119 futures leading the declines this morning, down seventy four points. 0:20:01.200 --> 0:20:08.320 You're listening to Bloomberg Day Brain Bloomberg eleven three O 0:20:08.400 --> 0:20:10.200 weather sunshine to start the week. We'll get up to 0:20:10.280 --> 0:20:13.600 eighty five degrees highs near ninety tomorrow and the next 0:20:13.720 --> 0:20:17.040 day with the possibility of afternoon showers of thundershowers tomorrow. 0:20:17.359 --> 0:20:23.479 Right now sixty seven in Central Park, broadcasting live from 0:20:23.720 --> 0:20:27.680 Bloomberg Interactive Broker's studio in New York, Bloomberg E Living 0:20:27.720 --> 0:20:32.200 Freedom to Washington, d C. Bloomberg to Boston, Bloomberg What 0:20:32.359 --> 0:20:35.480 Oh six one to San Francisco, Bloomberg Home sixty to 0:20:35.560 --> 0:20:38.760 the country, Sirius XM Cho one nineteen and around the 0:20:38.800 --> 0:20:42.720 globe the Bloomberg business in Bloomberg Radio dot Com. This 0:20:43.200 --> 0:20:51.960 is Bloomberg Daybreak six thirty on Wall Street. Good morning, 0:20:51.960 --> 0:20:54.720 I'm Nathan Hagar and I'm Karen Moscow. We are just 0:20:54.800 --> 0:20:57.560 about three hours away from the open of US trading time. 0:20:57.600 --> 0:20:59.400 For the five things that you need to notice Start 0:20:59.480 --> 0:21:03.399 your day. Onto You by Interactive Brokers. Interactive Brokers at 0:21:03.400 --> 0:21:06.520 the Global Analysts helps you find new global investment opportunities 0:21:06.720 --> 0:21:10.280 to diversify your portfolio and discover undervalued companies that may 0:21:10.359 --> 0:21:13.680 have a greater growth potential. Try ib k R Global 0:21:13.720 --> 0:21:16.760 Analysts Today at ibk R dot com. Slash g a 0:21:17.760 --> 0:21:20.399 first you began at the Latest on Twitter shares her 0:21:20.440 --> 0:21:22.760 down more than six percent in early trading as a 0:21:22.760 --> 0:21:25.600 show down between Elon Musk and a social media company 0:21:25.840 --> 0:21:28.320 appears to be headed a court. Bloomberg's you need a 0:21:28.359 --> 0:21:30.320 young joins us Live with the Latest or need a 0:21:30.320 --> 0:21:33.080 good morning, Good Morning Karen. Elon Musk is backing out 0:21:33.119 --> 0:21:35.639 of the forty four billion dollar deal to buy Twitter 0:21:35.720 --> 0:21:38.800 after all, but he can't just walk away without a 0:21:38.880 --> 0:21:41.560 court case, and Twitter has lawyered up in a race 0:21:41.680 --> 0:21:44.879 to sue Musk to follow through. Bloomberg sources say a 0:21:44.960 --> 0:21:48.040 filing could come as soon as early this week. Now. 0:21:48.119 --> 0:21:50.720 If the judge rules against Musk, he could be forced 0:21:50.760 --> 0:21:53.840 to pay Twitter shareholders fifty four dollars and twenty cents 0:21:53.880 --> 0:21:56.520 a share, but a ruling in his favor would let 0:21:56.640 --> 0:21:59.399 musk Walk. Although he probably have to pay a one 0:21:59.480 --> 0:22:02.960 billion all the breakup fee, there's always the prospect that 0:22:03.240 --> 0:22:06.600 both sides could reach a settlement. Live in New York, 0:22:06.720 --> 0:22:08.840 I'm rened a young Bloomberg Day Break. All right, we 0:22:08.920 --> 0:22:10.600