Speaker 1: My from the Bloomberg Interactive Berker Studios is Bloomberg Daybreak
Speaker 1: for Thursday, March second. Coming up today, Tesla shares drop
Speaker 1: as Elon Musk disappoints at an investor meeting, Salesforce shares
Speaker 1: a surge on an upbeat outlook, Credit Suis escalates efforts
Speaker 1: to win back clients, and another crypto firm plunges over
Speaker 1: doubts on its future. I maybe more as New York
Speaker 1: City will settle with hundreds of demonstrators who say they
Speaker 1: were subjected to excessive force, and New Jersey property tax
Speaker 1: rebate checks start going out this month. I'm John Stagshaward
Speaker 1: sports seven straight wins for the Knicks. They blew out
Speaker 1: the nets at the Garden Road winds for the Rangers
Speaker 1: and Devils. That's all straight ahead on Bloomberg day Break,
Speaker 1: The business news you need disturn your day, and just
Speaker 1: one fifteen minute podcast each pointing on Apples, Spotify, the
Speaker 1: Bloomberg Business Appen everywhere you get your podcasts. Good morning,
Speaker 1: I'm Nathan Hager and I'm Cameron Moscow. Here are the
Speaker 1: stories we're following today. We begin with a selloff in
Speaker 1: Tesla shares this morning. They're down more than five percent.
Speaker 1: Elon Musk's much hyped master plan fell flat with Tesla's investors.
Speaker 1: The four hour presentation on Investor Day failed to offer
Speaker 1: any firm detail on the company's next generation of electric cars.
Speaker 1: Musk did, however, Tesla's leadership in artificial intelligence, so as
Speaker 1: we solve real world AI. I don't think there's any
Speaker 1: I don't think there's anyone even close to Tesla unsolving
Speaker 1: real world AI. Elon Musk did confirm a new plant
Speaker 1: in Mexico will build Tesla's next generation of vehicles, but
Speaker 1: he didn't offer details on timing well. The decline in
Speaker 1: Tesla's shares not helping market sentiment. This morning, Nathan stocks
Speaker 1: are lower around the world, and yields on ten year
Speaker 1: treasuries or above four percent for the first time since November.
Speaker 1: More central bankers, like Minneapolis Spent President Neil cash Cary
Speaker 1: are hammering home the message that rates will keep going up.
Speaker 1: I'm open minded at this point about whether it's twenty
Speaker 1: five or fifty. Basis points to me much. What's much
Speaker 1: more important than whether it's twenty five or fifty is
Speaker 1: what we signal in what's called the dot plot. And
Speaker 1: cash carry in. The FED raise rates by twenty five
Speaker 1: basis points at their last meeting. Markets are currently pricing
Speaker 1: in three more hikes of that size. Another note on
Speaker 1: central banks this morning, Karen brings us to the Federal
Speaker 1: Reserve Bank of Chicago. It turns out the search firm
Speaker 1: it hired to find a new president includes the wife
Speaker 1: of Austin Gulsby among its executive Schoolsby was ultimately picked
Speaker 1: for the role. He took over leadership of the bank
Speaker 1: in January and is now a voting member of the FED.
Speaker 1: The Chicago FED spokesperson says, quote, we have every confidence
Speaker 1: in the integrity of the search process. Well in Europe, Nathan,
Speaker 1: looks like rates will continue to go up. BCB president
Speaker 1: Christine Lagard told a Spanish TV show that interest rate
Speaker 1: increases may need to continue beyond a planned half point
Speaker 1: move two weeks from now. Laguard said policymakers will do
Speaker 1: everything to return inflation to their two percent target. And
Speaker 1: following those comments, Karen, we're getting fresh inflation data out
Speaker 1: of the EU, crossing the Bloomberg just moments ago. Euro
Speaker 1: area inflation rows. Last month, consumer prices were up eight
Speaker 1: and a half percent compared to an estimate of eight
Speaker 1: point three percent. While staying in Europe, we're taking a
Speaker 1: close look at Credit Suite this morning. We're learning the
Speaker 1: bank is escalating efforts to win back clients, and we
Speaker 1: get the story live with the Bloomberg's UIN parts in London.
Speaker 1: Good morning, Uen, Good morning Karen and Nathan. If you've
Speaker 1: got five million bucks to deposit, then Credit Suiee wants
Speaker 1: your business. After unprecedented outflows in the latest quarter, Bloomberg
Speaker 1: has learned the Swiss Bank has raised three month rates
Speaker 1: in Asia too, as much as about six and a
Speaker 1: half percent for new money. That's close to one hundred
Speaker 1: basis points more than it was offering in December. It's
Speaker 1: also high the rivals, including Ubs, JP Morgan and Citygroup
Speaker 1: a clear signed Credit Suite wants to rebuild assets in
Speaker 1: the region. In London, I'm you and Potspenbag daybreak, All
Speaker 1: right you and thank you. Back here in the US
Speaker 1: shares of Salesforce, you're up nearly fifteen percent. That's after
Speaker 1: an upbeat forecast for the coming year. We caught up
Speaker 1: with Chairman and CEO Mark Benioff as we really focus
Speaker 1: on our performance, on our profitability on the reprioritization back
Speaker 1: to being a core CRM company. It was really time
Speaker 1: to put the M and A committee on ice and
Speaker 1: just mitigate what we've been doing with M and A
Speaker 1: and let's focus more on our core Mark Benioff's also
Speaker 1: praising activist investors for piling into Salesforce. The CEOs enjoying
Speaker 1: a victory lap with these strong results after those very
Speaker 1: same investors pushed for changes at Salesforce over the past
Speaker 1: few months. Well. We've also been speaking with the CEO
Speaker 1: of Chevron, Nathan Mike Wortz says rising Chinese oil demand
Speaker 1: and dwindling spare capacity around the world may push crewd
Speaker 1: prices higher this year. All the leading indicators would suggest
Speaker 1: that economic activity is picking up, energy demand is picking up,
Speaker 1: and I think as we get into the middle of
Speaker 1: this year and certainly into the second half of these year,
Speaker 1: that demand is likely to tighten markets a little bit.
Speaker 1: Chevron CEO Mike Worretz says China's reopening will provide steady
Speaker 1: demand growth through the year. And checking oil right now,
Speaker 1: nimex screwed oils up half percent or thirty seven cents
Speaker 1: at seventy eight dollars six cents a barrel. Brent is
Speaker 1: up four tents of a percent at eighty four dollars
Speaker 1: sixty four cents. Now, we've been speaking with the CEO
Speaker 1: of coin Base Global, Brian Armstrong, is pushing back at
Speaker 1: SEC efforts to regulate the crypto exchanges so called staking product.
Speaker 1: In coin bass case, our staking product is not a security.
Speaker 1: There's many differences. I mean, we customers never turn over
Speaker 1: their assets to coin Base, for instance, They're always in
Speaker 1: the customer's possession, and we're really just providing a service
Speaker 1: that passes through those coins to help them participate in staking,
Speaker 1: which is a decentralized protocol. Brian Armstrong says Coinbase received
Speaker 1: investigative subpoenas from the SEC about staking. It works by
Speaker 1: letting users generate yields in return for using their tokens
Speaker 1: to facilitate blockchain transactions. Well, staying in the crypto world now, Nathan,
Speaker 1: there are concerns of another crypto firm collapse. Shares of
Speaker 1: Silvergate Capital are plunging on news it's delaying its annual report.
Speaker 1: We get the details live with Bloomberg Steve Rabiport. It's
Speaker 1: Steve Goodman. Good morning, Karen and Nathan's silver stocks sank
Speaker 1: as much as thirty two percent in pre market trading
Speaker 1: after the firm said it's studying its status as a
Speaker 1: growing concern. Silvergate says the delay is necessary to review
Speaker 1: financial controls and to assess the damage from the collapse
Speaker 1: of FTX. Many Silvergate customers pulled out after FTX went
Speaker 1: belly up late last year. The company already reported a
Speaker 1: one billion dollars loss for the fourth quarter and warned
Speaker 1: that number could climb higher. Live in New York, I'm
Speaker 1: Steve Rappaport Bloomberg Daybreak. It's forty degrees in New York.
Speaker 1: It's going to be sunny this afternoon, breezy and milder
Speaker 1: with a high year sixty. Clouds build in tonight. We'll
Speaker 1: get down your thirty five time now to look at
Speaker 1: some of the other stories making news in New York
Speaker 1: and around the world with Bloomberg's Amy Morris. Good morning, Amy,
Speaker 1: Good morning Nathan. New York City advocates are outraged NYPD
Speaker 1: representatives failed to show up at yesterday's oversight hearing. Instead,
Speaker 1: the department submitted written testimony as council members spent hours
Speaker 1: listening to public concerns over the departments Tegic Response Group.
Speaker 1: There's a lot of people here who I wanted to
Speaker 1: talk to, and then I hear I don't understand that
Speaker 1: we have to have this whole bureaucracy to hold them accountable,
Speaker 1: and they don't even show up. In a statement, the
Speaker 1: NYPD wrote that in part, it is committed to changing
Speaker 1: its practices, but opponents say the SRG commits acts of
Speaker 1: violence without being held accountable. Now this after the city
Speaker 1: agreed to pay nearly seven million dollars to more than
Speaker 1: three hundred demonstrators who were mistreated during a twenty twenty
Speaker 1: protest against police violence. The anti protest practice, known as kettling,
Speaker 1: boxed in racial justice demonstrators and then hit them with
Speaker 1: batons and pepper spray. New York City agreed to pay
Speaker 1: twenty one five hundred dollars to each protester involved. Now,
Speaker 1: with the judge approves, it will cost the city between
Speaker 1: four million and six million dollars. Chicago's police chief announced
Speaker 1: his resignation just today after Laurie Lightfoot became the first
Speaker 1: mayor of the third largest US city to lose a
Speaker 1: re election bid in forty years. Police super into David
Speaker 1: Brown says he'll leave his post effective March sixteenth and
Speaker 1: will take a job as the chief operating officer of
Speaker 1: a personal injury law firm. Chicago is faced with rising
Speaker 1: violence that sparked outrage among residents and business leaders. Roughly
Speaker 1: one point seven million homeowners and renters will be benefiting
Speaker 1: from one of the largest tax relief programs in New
Speaker 1: Jersey's history. Yesterday was the deadline for homeowners and renters
Speaker 1: to fill out forms for the Anchor Rebate program. Governor
Speaker 1: Phil Murphy says homeowners with income up to one hundred
Speaker 1: and fifty thousand dollars, we'll receive a fifteen hundred dollars
Speaker 1: rebate in the spring. Renters get a four hundred fifty
Speaker 1: dollars rebate. And SpaceX has launched four astronauts to the
Speaker 1: International Space Station four NASA. The Falcon rocket launched from
Speaker 1: Florida's Kennedy Space Center early this morning. The Dragon capsule
Speaker 1: should reach the space station by tomorrow. Global News twenty
Speaker 1: four hours a day, powered by more than twenty seven
Speaker 1: hundred journalists and analysts in over one hundred twenty countries.
Speaker 1: I'm Amy Morris. This is Bloomberg Nathan, Thank you, Amy.
Speaker 1: Time now far Bloomberg Sports Up. They brought to you
Speaker 1: by Chris stayed Autie. For that, we bring in John
Speaker 1: stash Hour. Thanks Nathan. The Nicks and Nets close to
Speaker 1: each other in the standings, but that's because the Nets
Speaker 1: used to have Kevin Durant Kyrie Irvy. Of course they
Speaker 1: no longer do, and it doesn't appear they'll remain close
Speaker 1: as these two teams are clearly going opposite ways. Nets
Speaker 1: have lost Fournow eight of their last ten. Knicks have
Speaker 1: won their last seven, yet to lose since they made
Speaker 1: that trade to get Josh Hart from Portland. At the Garden,
Speaker 1: it was all Knicks a forty seven point first quarter
Speaker 1: when they shot seventy eight percent eighty two percent on
Speaker 1: three pointers. The final was one forty two to one eighteen.
Speaker 1: Jalen Brunson scored thirty nine points, all but nine came
Speaker 1: in the first half. It he took four shots in
Speaker 1: the second half. Cam Johnson led Brooklyn with thirty three.
Speaker 1: Tomorrow Knight, the Nets go to Boston Celtic's one last
Speaker 1: night over Cleveland. The Knicks will play Tomorrow night in Miami.
Speaker 1: Durant played for the Suns last night for the first
Speaker 1: time back from his knee injury that he's suffered while
Speaker 1: with Brooklyn. He scored twenty three and a Phoenix win
Speaker 1: at Charlotte, Milwaukee won again. That's sixteen wins in a
Speaker 1: row for the Bucks. Rangers in Philadelphia because advantage had
Speaker 1: a first period goal on the power play his thirty second.
Speaker 1: Chris Cryder scored his twenty six. They went to overtime.
Speaker 1: It's played by Hedel the Tarasenko between the circles. Tarrasinco
Speaker 1: fires that scores. Vladimir Tarasenko, his third goal as a Ranger,
Speaker 1: lights the lamp for the Blue Shirts three to two
Speaker 1: victory and overtop ESPN New York had the call. Tarasenko
Speaker 1: a recent acquisition. Patrick Kane an even more recent acquisition.
Speaker 1: Kane will make his Rangers debut tonight at the Garden
Speaker 1: against Ottawa Devil. Seven different goal scorers won seven five
Speaker 1: at Colorado. Fordham lost in overtime at George. Mason started
Speaker 1: the Northeast Conference Tournament season, ending losses for Wagner LYU
Speaker 1: and Saint Francis. Notre Dame upset Pittsburgh. It was the
Speaker 1: last home game for long time Notre Dame coach Mike Bray,
Speaker 1: John Stasheward, Bloomberg Sports Live from coast to host from
Speaker 1: New York to San Francisco, Boston to Washington, DC nationwide
Speaker 1: on Sirius Exam, the Bloomberg Business App, and Bloomberg dot Com.
Speaker 1: This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar. Milon
Speaker 1: Musk has unveiled his third master plan for Tesla, and
Speaker 1: so far, so far, it does not seem to be
Speaker 1: falling too well with investors. Right now, Tesla shares are
Speaker 1: down more than five and a half percent after a
Speaker 1: lot of talk from the gigafactory in Austin about a
Speaker 1: sustainable energy future for the planet, but not much in
Speaker 1: the way of specifics. For more, We're joined by Bloomberg
Speaker 1: Global Autos editor Craig Trudell. Craig, good Morning. Was a
Speaker 1: four hour presentation, and I mean, arguably you could say
Speaker 1: that Tesla did deliver on at least putting out a
Speaker 1: message about the sustainable energy future, because there was certainly
Speaker 1: a lot of talk about that. Yeah, I think the
Speaker 1: beginning of the presentation was definitely heavy on details. There
Speaker 1: sort of calculations of what it's going to take along
Speaker 1: with you know, some hints of of Tesla's role and
Speaker 1: that obviously everyone knows. Uh. You know that that you know,
Speaker 1: they have the cars, they have the battery storage products. Uh.
Speaker 1: There was there was a suggestion that they may get
Speaker 1: into making key pumps for homes. But you know, the
Speaker 1: big news that was sort of anticipated was a next
Speaker 1: generation vehicle that the company has alluded to uh in
Speaker 1: the past few months and really even more than two
Speaker 1: years ago when they held their battery day, they talked about,
Speaker 1: you know, a much cheaper model, a twenty five thousand
Speaker 1: dollar car. Uh. There there was really very little in
Speaker 1: the way of details there, uh, and that you know,
Speaker 1: sort of left left the crowd hanging. I think that
Speaker 1: is the big reason why we're seeing the reaction this morning. Well,
Speaker 1: we're investors expecting too much from an event like this.
Speaker 1: Was this the right venue for analyst to hear about
Speaker 1: things like a lower priced sedan or specifics about Tesla's
Speaker 1: model lineup going forward. I think it's honestly hard to say,
Speaker 1: because you know, you never really know what Musk is
Speaker 1: going to do, right, and and I do think that
Speaker 1: you know, when you sort of tout the event as
Speaker 1: you know, the plan for transitioning the world to sustainable energy,
Speaker 1: you know clearly a low price electric car would play
Speaker 1: a big part in that. And so I do think that,
Speaker 1: you know, the expectation of something on that product was understandable,
Speaker 1: and you know that that helps explain why there there's
Speaker 1: been such a letdown in terms of, you know, how
Speaker 1: the investors are digesting this. It was interesting as well
Speaker 1: during this presentation to see Musk put forward a lot
Speaker 1: of executives, more than a dozen of them, some of
Speaker 1: whom investors have never really seen before. What does that
Speaker 1: say about the leadership at Tesla? Yeah, you know, I
Speaker 1: think that's a very clear response to the criticism that
Speaker 1: Musk has gotten and that the board has gotten about. Uh,
Speaker 1: you know, who's who's behind Musk and what happens to
Speaker 1: this company? You know, if and when he moves on.
Speaker 1: I don't think there's any expectation that you know, he
Speaker 1: wants to leave ut Tesla. But of course we know
Speaker 1: he's stretched awfully thin. He was already running several other
Speaker 1: companies before he acquired Twitter. Uh, and I think he
Speaker 1: provided some fresh evidence of just how distracted he is
Speaker 1: by that company by tweeting during during the presentation when
Speaker 1: some of his executives were speaking, and so, uh, you know,
Speaker 1: I think there was there was clearly an attempt there
Speaker 1: to show uh, you know, some of the talent on
Speaker 1: the bench for for Tesla to sort of address some
Speaker 1: of some of that criticism. So is there anything, Craig
Speaker 1: that you heard from the presentation that investors can hang
Speaker 1: their hats on when it comes to Tesla's immediate plans.
Speaker 1: I think one of the things that was really interesting,
Speaker 1: you know, to the extent they did talk about that
Speaker 1: their next generation vehicle, they've talked about the drive unit
Speaker 1: not using rare earth metals. Since so we've seen uh
Speaker 1: miners of those metals react in a really substantial way
Speaker 1: that that isn't a huge shock. We've heard automakers like
Speaker 1: BMW talk about efforts to get rid of rare earth. Um,
Speaker 1: you know, in addition to uh this being you know,
Speaker 1: sort of a dirty process mining those they're expensive and
Speaker 1: and uh you know rare is in the name, right,
Speaker 1: and so uh it's not necessarily a shocker that they're
Speaker 1: going in that direction, but uh, definitely, um, you know,
Speaker 1: judging from the reaction and shares of those companies that
Speaker 1: came as a bit of a surprise. I think they
Speaker 1: also interestingly talked about, uh, you know, lithium refining and
Speaker 1: and sort of their reluctance to get into the business
Speaker 1: of mining lithium if they can have avoid it, but
Speaker 1: that they do see you know, real sort of stress
Speaker 1: in the refining space and that they're going to jump
Speaker 1: into that to help play a role in sort of
Speaker 1: sorting out that bottleneck. This is Bloomberg Daybreak Today, your
Speaker 1: morning brief on the stories making news from Wall Street
Speaker 1: to Washington and beyond. Look for us on your podcast
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Speaker 1: time on Bloomberg eleven three zero in New York, Bloomberg
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Speaker 1: us again tomorrow morning for all the news you need
Speaker 1: to start your day, right here on Bloomberg Daybreak