WEBVTT - Campus Protests Heat Up, HSBC CEO Steps Down

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan

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<v Speaker 1>Hager and I'm Karen Moscow. Here are the stories we're

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<v Speaker 1>following today.

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<v Speaker 2>We begin with the latest on pro Palestinian college protests

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<v Speaker 2>expanding across the country. Students at Columbia University are now

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<v Speaker 2>occupying parts of a campus building. We get the very

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<v Speaker 2>latest now with Bloomberg's John Tucker in New York.

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<v Speaker 3>Dozens of students to enter the campus building known as

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<v Speaker 3>Hamilton Hall after midnight. They barricaded themselves inside, piling tables

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<v Speaker 3>and chairs to block doors and covered security cameras. Columbia

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<v Speaker 3>University remains the epicenter the demonstrations taking place on campuses

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<v Speaker 3>across the country and even around the world. The school

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<v Speaker 3>is now suspending students who refused to abide by yesterday's

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<v Speaker 3>deadline to vacate an encampment set Upollet, one of the organizers,

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<v Speaker 3>refuses to go and call the protests peaceful and unifying.

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<v Speaker 4>There has been no violence on this encampment.

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<v Speaker 1>Students from diverse dot grounds have shared their religious observances

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<v Speaker 1>together well protesters.

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<v Speaker 3>At the University of Texas campus in Austin. They witnessed

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<v Speaker 3>a forceful response from local law enforcement and state police,

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<v Speaker 3>some in riot gear. At UCLA, students and faculty took

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<v Speaker 3>part in a walkout. John Tucker Bloomberg.

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<v Speaker 1>Radio, All right, John, thank you well. As those campus

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<v Speaker 1>protests intensify, the White House is pressuring Hamas to accept

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<v Speaker 1>a ceasefire deal with Israel. Secretary of State Anthony blink

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<v Speaker 1>And has called Israel's offer extraordinarily generous. White House Press

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<v Speaker 1>Secretary A. Karin John Pierre agrees.

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<v Speaker 5>Now is the time for Hamas to take this deal.

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<v Speaker 5>It is on the table.

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<v Speaker 1>It is time to is way past time to get

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<v Speaker 1>these hostages home. White House spokeswoman Karin Jean Pierre says

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<v Speaker 1>Hamas and not Israel, as the bigger obstacle to peace.

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<v Speaker 1>President bought and spoke yesterday with the leaders of Egypt

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<v Speaker 1>and Cutter to put even further pressure on her Mush.

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<v Speaker 1>Egyptian state media report A. Mush plans to give a

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<v Speaker 1>written response to Israel's ceasefire offer, but it's not saying when.

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<v Speaker 2>Turning to markets, now, Karen, there is an unexpected change

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<v Speaker 2>of the guard at one of the world's biggest banks.

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<v Speaker 2>Let's go to London and get the details on that.

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<v Speaker 2>From Bloomberg Daybreak Europe Banker Caroline Hepger, Good morning, Caroline.

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<v Speaker 6>Good morning Nathan and Karen. HSBC's COO Noel Quinn is

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<v Speaker 6>stepping down after some five years for a portfolio career

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<v Speaker 6>and a better work life balance. It was a surprise decision,

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<v Speaker 6>but you can't say Quinn hasn't delivered, with record profits

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<v Speaker 6>last year and a thirty five percent jump in the

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<v Speaker 6>share price. As for first quarter results, pre tax profits

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<v Speaker 6>dipped one point eight percent but beat estimates. Plus there's

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<v Speaker 6>that three billion dollar share buyback. The bank is now

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<v Speaker 6>looking at candidates near and far to a place Quinn

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<v Speaker 6>will stay on during a transition. His success's main challenge

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<v Speaker 6>grabbing growth in Asia and managing time US China ties

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<v Speaker 6>in London. I'm Caroline Hepke Bloomberg Radio.

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<v Speaker 2>Okay, Caroline, thank you. That buyback news seems to be

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<v Speaker 2>impressing investors. Checking shares of HSBC. They are hired by

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<v Speaker 2>more than three percent in London.

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<v Speaker 1>Well, Nathan, we have management changes here in the US

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<v Speaker 1>as well. The CEO of Paramount Bob Backish is stepping down.

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<v Speaker 1>He'll be replaced by a trio of top executives and

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<v Speaker 1>we get more from Bloomberg's Doug Prisner.

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<v Speaker 7>It comes as Paramount negotiates a possible sale to David Ellison.

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<v Speaker 7>Ellison wants to merge the company with his Skydance Media.

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<v Speaker 7>He's been talking with Sherry Redstone, Paramount's controlling shareholder. However,

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<v Speaker 7>some Paramount investors are against a deal. They say it

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<v Speaker 7>would enrich Redstone at the expense of other investors. So

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<v Speaker 7>now the olive branch. Ellison is proposing to buy three

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<v Speaker 7>billion dollars of Paramount shares at a premium, and Redstone

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<v Speaker 7>is in favor of letting non voting shareholders have a

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<v Speaker 7>say on any transaction. In terms of earnings, Paramount's results

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<v Speaker 7>top estimates thanks to the broadcast of the Super Bowl

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<v Speaker 7>and narrower losses from streaming in New York. I'm Doug Prisner,

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<v Speaker 7>Bloomberg Radio.

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<v Speaker 2>Okay, Doug. Thanks Turning the economy. Now, the FED is

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<v Speaker 2>beginning its two day policy meeting today. Well, just about

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<v Speaker 2>everyone expects j. Powell and Company to stand pat on rates. Investors,

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<v Speaker 2>including Matt Miskin at John Hancock Investment Management, expect a

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<v Speaker 2>more hawkish tone from the Fed.

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<v Speaker 8>Share I think Palell's got to come in and really

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<v Speaker 8>actually shake it up. You know, you put this into contacts.

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<v Speaker 8>The last six months they've been way too dubbish, and

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<v Speaker 8>they may have actually re accelerated reaccelerated inflation just from

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<v Speaker 8>the Ford guidance that they provided six months ago. He's

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<v Speaker 8>I think he's naturally a dove. He might have to

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<v Speaker 8>come to the dark side a little bit and become

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<v Speaker 8>a bit of a hawk here, and you might see

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<v Speaker 8>a bit of a repricing in markets as a result.

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<v Speaker 2>It's Matt Mickskin at John Hancock that FED decision and

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<v Speaker 2>Pale press conference. It all begins tomorrow at two pm

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<v Speaker 2>Wall Street time.

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<v Speaker 1>Well, investors await the FED decision, Nathan. The barrage of

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<v Speaker 1>earnings keeps coming in. Today we'll hear from four four

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<v Speaker 1>dozen companies in the S and P five hundred and

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<v Speaker 1>headlining that list is Amazon. We get a preview from

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<v Speaker 1>Bloomberg's Tom Busby.

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<v Speaker 4>The big focus for investors how much the company's artificial

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<v Speaker 4>intelligence efforts have given its Amazon Web Services unit, already

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<v Speaker 4>the largest player in cloud services, a boost. It's also

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<v Speaker 4>facing a lot of competition for Microsoft and Alphabets Google division. Now,

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<v Speaker 4>this will also be Amazon's first earnings report since it

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<v Speaker 4>introduced an ad supported tier to its prime video service

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<v Speaker 4>in January, creating a new source of revenue. Consensus calls

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<v Speaker 4>for overall net revenue of one hundred and forty two

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<v Speaker 4>point five to nine billion, about forty percent of that

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<v Speaker 4>from online sales, earnings per share of.

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<v Speaker 3>Eighty two cents.

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<v Speaker 4>Tom buzzby Bloomberg Radio.

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<v Speaker 2>All right, Terren, thank you. More job cuts are reportedly

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<v Speaker 2>on the way at Tesla. The Information is reporting Elon

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<v Speaker 2>Musk is planning one hundreds more layoffs as two more

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<v Speaker 2>senior executives leave the company. The fresh round of cuts

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<v Speaker 2>comes just weeks after Tesla announced it would layoff more

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<v Speaker 2>than ten percent of its workforce.

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<v Speaker 1>Nathan. While Tesla cuts jobs, Elon muskwell continues to rebound.

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<v Speaker 1>In the past five days, must net worth has gone

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<v Speaker 1>up more than thirty seven billion dollars according to the

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<v Speaker 1>Bloomberg Billionaires Index. Musk add at eighteen and a half

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<v Speaker 1>billion to his fortune yesterday alone, after Tesla's shares rose

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<v Speaker 1>fifteen percent on optimistic news from the Chinese market. With

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<v Speaker 1>a net worth of more than two hundred one billion dollars,

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<v Speaker 1>Musk is close to overtaking second place Jeff Bezos after

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<v Speaker 1>he surpassed Mark Zuckerberg on the Billionaire's Index last week.

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<v Speaker 2>Well, Karen, some of Elon Musk's competitors in the automotive

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<v Speaker 2>space are delivering disappointing numbers. First quarter sales at Stalantis,

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<v Speaker 2>maker of Jeep and Fiat cars, slumped twelve percent, led

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<v Speaker 2>by declines in the US. Slower electric vehicle demand in

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<v Speaker 2>Europe was also a drag, and Stalanta's shares are down

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<v Speaker 2>about two percent.

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<v Speaker 1>Nathan Mercedes Benz's earnings plummeting thirty four percent in the

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<v Speaker 1>first quarter. The German the luxury automaker, was weighed down

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<v Speaker 1>by model changes in sluggish ev demand, and shares are

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<v Speaker 1>about four percent. Honest time now for a look at

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<v Speaker 1>some of the other stories making news in New York

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<v Speaker 1>and around the world. For that were joined by Bloomberg's

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<v Speaker 1>Michael Barr Michael, good morning.

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<v Speaker 9>Good morning, Karen. A grim story out of Charlotte, North Carolina.

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<v Speaker 9>Four officers trying to serve a warrant for a fellon

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<v Speaker 9>wanted for possessing a firearm were killed and four other

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<v Speaker 9>officers were wounded in a shootout. The officers killed the

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<v Speaker 9>suspect outside the Charlotte home yesterday after he fired on them.

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<v Speaker 9>Officers who rushed rescue the downed officers were themselves wounded

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<v Speaker 9>by a second shooter firing from inside the home. Charlotte

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<v Speaker 9>Mecklenburg Police Chief Johnny Jennings was emotional when he informed

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<v Speaker 9>the media late last night that one of the officers,

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<v Speaker 9>Joshua Eyer, who was critically injured, had died.

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<v Speaker 5>He survived by his wife, Ashley, and his three year

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<v Speaker 5>old son, Andrew. Will always be in the edited to

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<v Speaker 5>officer Iron for his bravery.

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<v Speaker 9>Jief Chennings says Officer Ayer was a six year veteran

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<v Speaker 9>of the force and just one officer of the month

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<v Speaker 9>North Carolina Governor Roy Cooper.

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<v Speaker 10>There really aren't words that you can say, because obviously

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<v Speaker 10>the families of these officers who've lost their lives this

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<v Speaker 10>afternoon are in shock and despair.

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<v Speaker 9>A woman and a seventeen year old male were taken

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<v Speaker 9>away for questioning after the three hour stand off ended.

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<v Speaker 9>Overall crime on New York City's subway system is down

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<v Speaker 9>six point four percent from last year's pace, as the

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<v Speaker 9>nation's largest mass transit providers seeks to boost safety and

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<v Speaker 9>writer confidence. According to the NYPD, there were six hundred

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<v Speaker 9>and sixty one reported crimes this year through April twenty eighth.

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<v Speaker 9>That's down from seven hundred and six during the same

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<v Speaker 9>period in twenty twenty three. The drop coincides with a

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<v Speaker 9>fifty seven percent increase in total arrests. Britain's King Charles

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<v Speaker 9>resumed some public duties today. Charles's return to at least

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<v Speaker 9>some public duties is taking pressure off wife Camilla and

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<v Speaker 9>son and heir William, who himself took family leave last

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<v Speaker 9>month after his wife Kate revealed her cancer diagnosis as well.

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<v Speaker 9>No date is set for her return to public life. Finally,

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<v Speaker 9>hot Dog City Field at tonight's Matt's game against the

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<v Speaker 9>Chicago Cubs, fans would be able to buy Nathan's hot

0:09:26.679 --> 0:09:29.920
<v Speaker 9>dogs for a dollar at the ballpark. There's a lillemit

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<v Speaker 9>of four hot dogs per transaction or when they run out,

0:09:33.200 --> 0:09:35.920
<v Speaker 9>or when you get full global news twenty four hours

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<v Speaker 9>a day and whenever you want it with Bloomberg News. Now,

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<v Speaker 9>I'm michae Lebarr and this is Bloomberg.

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<v Speaker 1>Hemon, how many does it take?

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<v Speaker 2>Michael barrs four?

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<v Speaker 4>Enough?

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<v Speaker 9>No? Not for me?

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<v Speaker 11>All right?

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<v Speaker 1>Oh, Michael Barry, thank you and as time now for

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<v Speaker 1>the Bloomberry Sports Update. Here's John stash Hour John Good Morning.

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<v Speaker 11>Dodn't Morning care in the next received loud fans support

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<v Speaker 11>on the road to the two games in Philadelphia. You

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<v Speaker 11>can only imagine what it'll be like tonight at the Garden.

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<v Speaker 11>Game five, Knicks up three one, a chance to win

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<v Speaker 11>the series. Two series in the West ended. Oklahoma City

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<v Speaker 11>finished a sweep of New Orleans, held the Pelicans. The

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<v Speaker 11>thirty seven percent shooting Lakers and Nuggets. Game five in Denver,

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<v Speaker 11>tie score, final second.

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<v Speaker 5>Murray has it on the high right side high picked

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<v Speaker 5>from Yokich.

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<v Speaker 3>Murray schopper from me.

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<v Speaker 5>He's got it again, three point six second set for

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<v Speaker 5>the Lakers.

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<v Speaker 2>Lebron over the Prince.

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<v Speaker 5>Chopper's so good at the hoard and the LA Lakers

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<v Speaker 5>did take that hell all the way out.

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<v Speaker 11>On Altitude Sports, Jamal Murray wasn't sure he'd played into

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<v Speaker 11>a strained cap. He played scored thirty two points. That

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<v Speaker 11>was his second game winning shot of the series. The

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<v Speaker 11>Nuggets move on and Lebron James will now decide whether

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<v Speaker 11>to come back for another season. It would be his

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<v Speaker 11>twenty second Already, the NBA's oldest player. Lebron said last

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<v Speaker 11>night he has it yet.

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<v Speaker 9>Given it much thought.

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<v Speaker 11>Celtics got thirty eight points and Derek White he made

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<v Speaker 11>eight three pointers a one h two to eighty eight

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<v Speaker 11>win at Miami. Boston leeds series three to one. Florida

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<v Speaker 11>Panthers advance beat Tampa Bay six to one, won the

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<v Speaker 11>series four to one. Dallas Stars won four two at Vegas.

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<v Speaker 11>That series tied to two. The road team has won

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<v Speaker 11>every game. Mets and the Yankees both lost quick, low

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<v Speaker 11>scoring games at Cityfield. Brandon Nimo a lead off home run.

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<v Speaker 11>Mets didn't score again. The Cubs didn't get a hit

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<v Speaker 11>off Luis Severino until the eighth inning, but they got

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<v Speaker 11>a two run home of the ninth from Christopher Morell

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<v Speaker 11>off Edwin Diez to win three to one. The game

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<v Speaker 11>is played in two hours five minutes in Baltimore. Leadoff

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<v Speaker 11>homer for the Orioles Gunner Henderson. They later added an

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<v Speaker 11>under and run shut out the Yankees to nothing. Zeke

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<v Speaker 11>Elliott played seven years in Dallas, then last season in

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<v Speaker 11>New England. He's going back to the Cowboys. Travis Kelcey.

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<v Speaker 11>He got a new two year contract from Kansas City.

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<v Speaker 11>John Stashawa, Bloomberg Sports.

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<v Speaker 9>Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,

0:11:49.559 --> 0:11:52.480
<v Speaker 9>and around the world on Bloomberg dot Com and the

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<v Speaker 9>Bloomberg Business app. This is Bloomberg Daybreak. Good morning.

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<v Speaker 2>I'm Nathan Hager.

0:11:57.880 --> 0:11:58.040
<v Speaker 9>Well.

0:11:58.080 --> 0:12:01.319
<v Speaker 2>It is a surprise move in global banking. Noel Quinn

0:12:01.559 --> 0:12:06.079
<v Speaker 2>is stepping down as CEO of HSBC after nearly five

0:12:06.160 --> 0:12:09.280
<v Speaker 2>years at the helm, setting off a sudden process to

0:12:09.320 --> 0:12:13.040
<v Speaker 2>find a successor to lead Europe's biggest bank for more.

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<v Speaker 2>We're joined by Bloomberg's Charlie Wells. Charlie, good morning. As

0:12:16.679 --> 0:12:18.560
<v Speaker 2>I mentioned, this did seem to come as quite a

0:12:18.600 --> 0:12:20.600
<v Speaker 2>surprise to a lot of investors. Do you have any

0:12:20.880 --> 0:12:24.080
<v Speaker 2>better clarity on why Noel Quinn decided to step down? Now?

0:12:24.520 --> 0:12:27.200
<v Speaker 12>Yeah, Nathan, no one saw this coming. I mean last year,

0:12:27.320 --> 0:12:30.480
<v Speaker 12>Noel Quinn's pay was actually doubled, so there were just

0:12:30.640 --> 0:12:33.120
<v Speaker 12>not telegraphs coming out of this bank that this could

0:12:33.160 --> 0:12:36.079
<v Speaker 12>potentially happen. And now what Quinn said is that he

0:12:36.120 --> 0:12:40.800
<v Speaker 12>wanted to find a more a better personal work life balance.

0:12:40.840 --> 0:12:44.040
<v Speaker 12>He said that he wants to embark upon a portfolio career.

0:12:44.360 --> 0:12:46.880
<v Speaker 12>We're not entirely sure what that means, And in comments

0:12:46.880 --> 0:12:50.480
<v Speaker 12>from executives this morning from HSBC, they haven't given us

0:12:50.480 --> 0:12:53.080
<v Speaker 12>a lot of indication of why or who could have

0:12:53.120 --> 0:12:57.160
<v Speaker 12>potentially come next. But we do know that whoever comes

0:12:57.160 --> 0:12:58.960
<v Speaker 12>next is going to have some pretty big shoes to

0:12:58.960 --> 0:13:00.960
<v Speaker 12>fill because Quinn was actually at the helm of this

0:13:01.080 --> 0:13:04.559
<v Speaker 12>bank for almost five years. He led it through the

0:13:04.600 --> 0:13:08.040
<v Speaker 12>height of COVID, he led it through a key shareholder

0:13:08.160 --> 0:13:11.920
<v Speaker 12>trying to break the bank apart, he successfully funded that off,

0:13:12.240 --> 0:13:15.120
<v Speaker 12>and he led HSBC through a period of heightened tensions

0:13:15.120 --> 0:13:17.640
<v Speaker 12>between China and the West. So, as I said, pretty

0:13:17.640 --> 0:13:18.680
<v Speaker 12>big shoes to Phil.

0:13:18.640 --> 0:13:22.240
<v Speaker 2>Yeah, certainly. And when you think about heightened tensions between

0:13:22.440 --> 0:13:26.040
<v Speaker 2>China and the West, that gets into the focus that

0:13:26.160 --> 0:13:30.280
<v Speaker 2>Noel Quinn had during his tenure to pivot attention to

0:13:30.559 --> 0:13:33.520
<v Speaker 2>the Asia business and sort of diminish some of the

0:13:33.520 --> 0:13:37.000
<v Speaker 2>more established businesses at HSBC in the US and Europe.

0:13:37.360 --> 0:13:40.479
<v Speaker 12>That's exactly right. I mean, HSBC is looking to diversify.

0:13:40.600 --> 0:13:43.040
<v Speaker 12>So they are a bank that is very reliant on

0:13:43.160 --> 0:13:46.160
<v Speaker 12>interest rates. They're very sensitive them, and you know recently

0:13:46.200 --> 0:13:49.080
<v Speaker 12>that's been a huge boon for the bank. You know,

0:13:49.120 --> 0:13:53.360
<v Speaker 12>their net interest margin, what beat expectations in this first quarter.

0:13:53.679 --> 0:13:55.920
<v Speaker 12>Ostensibly that's what we were all going to simply hear

0:13:55.960 --> 0:13:57.680
<v Speaker 12>about today, but of course we're not hearing about the

0:13:57.720 --> 0:14:02.839
<v Speaker 12>CEO move. But look, they are pivoting to Asia. They

0:14:02.880 --> 0:14:06.240
<v Speaker 12>have been under Quinn, and one focus here is wealth management.

0:14:06.360 --> 0:14:08.600
<v Speaker 12>And in these earnings today we got some kind of

0:14:08.679 --> 0:14:12.680
<v Speaker 12>better numbers on wealth management for HSBC, So that bodes well.

0:14:12.720 --> 0:14:15.559
<v Speaker 12>But this is going to be a big challenge for

0:14:15.920 --> 0:14:17.079
<v Speaker 12>whoever succeeds Quinn.

0:14:17.280 --> 0:14:20.119
<v Speaker 2>Yeah, and I guess we got better numbers just overall.

0:14:20.160 --> 0:14:23.600
<v Speaker 2>And plus this three billion dollar stock buy back, I mean,

0:14:23.720 --> 0:14:27.080
<v Speaker 2>is that kind of overshadowing or being overshadowed by this

0:14:27.440 --> 0:14:29.400
<v Speaker 2>succession news that suddenly came out.

0:14:29.840 --> 0:14:33.080
<v Speaker 12>Yeah, so shares have been trading up a couple percentage

0:14:33.160 --> 0:14:35.240
<v Speaker 12>of a couple percentage points, which is great, you know,

0:14:35.360 --> 0:14:38.320
<v Speaker 12>great for the stock. And look, I mean, analysts have

0:14:38.400 --> 0:14:42.160
<v Speaker 12>been talking before these results about a potential two billion

0:14:42.240 --> 0:14:44.720
<v Speaker 12>dollar buy back, and let's not forget that in February

0:14:45.040 --> 0:14:47.520
<v Speaker 12>there was a previously announced two billion dollar buyback, So

0:14:47.600 --> 0:14:50.600
<v Speaker 12>three billion, you know, is bigger. And it does show

0:14:50.680 --> 0:14:53.280
<v Speaker 12>that over his tenure, Quinn has been able to return

0:14:53.720 --> 0:14:57.880
<v Speaker 12>access capital to shareholders. So that's going to again be

0:14:57.960 --> 0:14:59.480
<v Speaker 12>a big focus. Can this continue?

0:14:59.680 --> 0:14:59.960
<v Speaker 11>A lot?

0:15:00.000 --> 0:15:03.040
<v Speaker 12>Lot of analysts have said that some of that capital

0:15:03.080 --> 0:15:05.040
<v Speaker 12>return is already kind of baked into some of this

0:15:05.160 --> 0:15:08.680
<v Speaker 12>share price. Something disappointing that I also should mention for

0:15:08.960 --> 0:15:12.320
<v Speaker 12>some observers of this stock though, was that forward guidance

0:15:12.360 --> 0:15:15.800
<v Speaker 12>for HSBC remained the same as it was in February,

0:15:16.160 --> 0:15:18.960
<v Speaker 12>and so the hope was that in an environment where

0:15:19.120 --> 0:15:21.040
<v Speaker 12>you know, rates are looking like they could be higher

0:15:21.080 --> 0:15:23.960
<v Speaker 12>for longer, that should have voted a bit better for

0:15:24.000 --> 0:15:26.160
<v Speaker 12>this bank. So that was a little bit of a disappointment.

0:15:26.640 --> 0:15:29.640
<v Speaker 2>Only about thirty seconds left, Charlie. But whoever fills Noel

0:15:29.680 --> 0:15:33.000
<v Speaker 2>Quinn's shoes, can we expect much of a change in focus,

0:15:33.040 --> 0:15:36.360
<v Speaker 2>a change in strategy from the new CEO at HSBC.

0:15:36.840 --> 0:15:39.600
<v Speaker 12>It seems like what the bank is trying to communicate

0:15:39.720 --> 0:15:42.200
<v Speaker 12>to analysts and investors is that there's going to be

0:15:42.240 --> 0:15:46.560
<v Speaker 12>a degree of continuity. So they have made clear that

0:15:46.680 --> 0:15:49.320
<v Speaker 12>you know, Quinn will be a part of this process.

0:15:49.560 --> 0:15:51.560
<v Speaker 12>They've said that they want to try to find a

0:15:51.600 --> 0:15:54.960
<v Speaker 12>successor in the latter half of twenty twenty four. There's

0:15:55.000 --> 0:15:57.280
<v Speaker 12>a world in which Quinn could actually stay into his

0:15:57.360 --> 0:16:00.960
<v Speaker 12>position well into twenty twenty five. And so what that

0:16:01.040 --> 0:16:04.160
<v Speaker 12>seems to indicate is they want to keep the strategy again,

0:16:04.240 --> 0:16:07.600
<v Speaker 12>a focus on that pivot to Asia going strong, and

0:16:07.640 --> 0:16:09.640
<v Speaker 12>they're trying to communicate pat Today.

0:16:10.240 --> 0:16:13.160
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