WEBVTT - Bloomberg Daybreak: November 21, 2022 - Hour 2 (Radio) 0:00:01.680 --> 0:00:04.880 Live from the Bloomberg Interactive Brooker Studios. Is this Bloomberg 0:00:04.960 --> 0:00:08.880 Gay Break for Monday, November twenty one? Coming up this hour, 0:00:09.160 --> 0:00:12.280 Bob Iger is back as CEO of Disney and shares 0:00:12.360 --> 0:00:15.600 sore on the news. First Donald Trump now Elon Musk 0:00:15.640 --> 0:00:19.200 invites Kanye West back on Twitter. More signs of tensions 0:00:19.280 --> 0:00:22.239 easing between the US and China, and stocks drop on 0:00:22.360 --> 0:00:26.480 concerned Beijing make Titan COVID restrictions. New York Governor Hulkel 0:00:26.560 --> 0:00:28.680 reacts to the deadly shooting at a gay bar in 0:00:28.760 --> 0:00:33.520 Colorado Springs. Plus, Buffalo begins digging out of a historic snowstorm. 0:00:33.560 --> 0:00:36.440 I'm Michael barn More ahead, I'm John stand and sports 0:00:36.440 --> 0:00:39.320 a heartbreaking loss for the Jets. The Giants and Knicks 0:00:39.400 --> 0:00:43.440 both lost. A win for Kyrie Irving and the Nets. 0:00:44.440 --> 0:00:47.280 That's all s training ahead on Bloomberg day Break on 0:00:47.400 --> 0:00:51.880 Bloomberg Elving Free on New York, Bloomberg one, Washington, d C, 0:00:52.360 --> 0:00:56.640 Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, 0:00:57.120 --> 0:01:00.080 Syrius XM one nine Team, and around the world the 0:01:00.320 --> 0:01:07.720 Bloomberg Radio Dot Carmen via the Bloomberg Business app. Hey 0:01:07.720 --> 0:01:10.559 good morning. I'm Nathan Hagar and I'm Karen Moss Galloway. 0:01:10.600 --> 0:01:13.199 Do you buy stock? Index futures are lower this morning. 0:01:13.200 --> 0:01:15.080 We are coming up to six oh one on Wall Street. 0:01:15.120 --> 0:01:17.440 I'm go check the markets every fifteen minutes throughout the 0:01:17.480 --> 0:01:20.959 trading day. On Bloomberg SNP Future is down twenty two 0:01:20.959 --> 0:01:23.679 points this morning. Down Future is down eight seven. Nasdaq 0:01:23.760 --> 0:01:27.000 futures down ninety. The decks in Germany's down six tenths 0:01:27.040 --> 0:01:29.240 of a percent, Cap in Paris down two tenths of 0:01:29.360 --> 0:01:32.120 upper cent, and the foot see one hundred is little changed, 0:01:32.200 --> 0:01:34.600 and your treasury up one thirty second deal three point 0:01:34.760 --> 0:01:37.160 two percent. That yield on the two year four point 0:01:37.200 --> 0:01:40.280 five three percent. Nine Max Screwed Oil is down half 0:01:40.319 --> 0:01:43.040 percent or thirty eight cents at seventy nine seventy cents 0:01:43.080 --> 0:01:45.600 of barrel, and Comex School down six tenths per cent 0:01:45.720 --> 0:01:48.639 or eleven dollars twenty cents. It's seventeen fifty seven eighty, 0:01:48.680 --> 0:01:51.960 announced Nathan, Well, Karen. We begin with a major changing 0:01:51.960 --> 0:01:55.120 of the guard at Disney. A familiar face is coming 0:01:55.160 --> 0:01:57.280 back to leave the company. We get the story from 0:01:57.320 --> 0:02:01.000 Bloomberg's dog Prisoner Disney Sports says Bob Apeck is out 0:02:01.240 --> 0:02:04.880 and he's being replaced by his predecessor, Robert Iger. Iger 0:02:04.960 --> 0:02:07.880 will serve as CEO for two years. His mandate is 0:02:07.920 --> 0:02:10.920 to set the strategic direction for renewed growth and to 0:02:10.960 --> 0:02:14.120 work closely with the board in developing a successor to 0:02:14.200 --> 0:02:17.400 lead Disney. At the completion of his term, the board 0:02:17.400 --> 0:02:20.200 did thank j Pick for his service, including navigating the 0:02:20.240 --> 0:02:24.400 company through the pandemic. Iger's position as chairman is unchanged. 0:02:24.600 --> 0:02:27.320 In New York, I'm Doug Christener, Bloomberg Daybreak. All right, Dyke, 0:02:27.400 --> 0:02:29.639 thank you well. Shares a Disney or up almost eight 0:02:29.680 --> 0:02:32.799 percent this morning. One other note on Disney, The Wall 0:02:32.840 --> 0:02:37.000 Street Journal reporting activist investor Nelson Pelts is opposing the 0:02:37.040 --> 0:02:40.680 return of Igor as Disney CEO. The paper says Peltz's firm, 0:02:40.720 --> 0:02:43.720 Trium Fund Management, acquired a stake worth over eight hundred 0:02:43.760 --> 0:02:46.880 million dollars in Disney this month. In other corporate news 0:02:46.919 --> 0:02:50.480 this morning, Karen, the turmoil at Twitter continues. Sources say 0:02:50.480 --> 0:02:53.960 there may be more employee layoffs coming this week. Bloomberg 0:02:54.000 --> 0:02:57.560 said Baxter Awards. It is causing some concern among legislators. 0:02:58.040 --> 0:03:01.480 This talk, along with Donald Trump being reinstated. Has Congressmen 0:03:01.560 --> 0:03:04.440 Adam Schiff on ABC has heard on Bloomberg say the 0:03:04.480 --> 0:03:07.000 Twitter melt out and Elon Musk need to be looked at. 0:03:07.040 --> 0:03:11.119 It just underscores the the erratic leadership of Twitter now 0:03:11.200 --> 0:03:15.200 under Musk, but also the security concerns with security people 0:03:15.400 --> 0:03:19.120 fleeing Twitter and what that means for the protection of 0:03:19.160 --> 0:03:22.720 Americans private data. As Chef saying that it goes against 0:03:22.760 --> 0:03:26.600 everything Musk has said about setting up monitoring committees in 0:03:26.680 --> 0:03:29.720 San Francisco. I'm at Baxter Bloomberg Daybreak, all right and 0:03:29.840 --> 0:03:33.400 thank you. And a few days after reinstating former President 0:03:33.400 --> 0:03:36.720 Trump on Twitter, Elon Muska is welcome back Yea. The 0:03:36.840 --> 0:03:40.040 artists formerly known as Kanye West had been suspended from 0:03:40.080 --> 0:03:42.680 Twitter for two weeks because of an anti Semitic tweet. 0:03:42.960 --> 0:03:45.120 Turning to markets now, Karen, it is a shortened trading 0:03:45.120 --> 0:03:47.360 week because of Thanksgiving, and the week is kicking off 0:03:47.360 --> 0:03:50.240 with losses in Asia. Let's get the recap from Bloomberg's 0:03:50.240 --> 0:03:53.280 Annabelle Druelers in Hong Kong. Good morning, Innabelle, Good morning Karen, 0:03:53.280 --> 0:03:56.800 and Nathan training Sentiment Asia on Monday. It really took 0:03:56.840 --> 0:03:59.320 a hit from what was happening in China, So essentially 0:03:59.360 --> 0:04:02.360 over the week end we saw the first COVID related 0:04:02.440 --> 0:04:05.000 deaths there in months, and then that led to further 0:04:05.080 --> 0:04:07.880 concern that officials would start to back away from this 0:04:07.960 --> 0:04:11.560 possible easing of COVID zero restrictions. So as a result, 0:04:11.600 --> 0:04:14.120 we did see China shares sailing off, and then that 0:04:14.160 --> 0:04:17.359 really hit sentiment across the board in Asia, including in 0:04:17.440 --> 0:04:21.039 markets like Korea, with the Korean one, for instance, slumping 0:04:21.080 --> 0:04:24.240 more than one percent against the dollar. With this retreat 0:04:24.520 --> 0:04:28.160 back into safe haven's like the green back and treasuries 0:04:28.680 --> 0:04:32.360 in Hong Kong. I'm annabel Ruler's Bloomberg Daybreak. All right, Annabelle, 0:04:32.400 --> 0:04:34.800 thank you well. I'm the geopolitical front word this morning 0:04:34.839 --> 0:04:37.880 at the defense chiefs from the US and China willlikely 0:04:37.960 --> 0:04:40.600 need for their first starcks in months. Amy Morris has 0:04:40.680 --> 0:04:46.080 details from oorrow Bloomberg newsroom in Washington. Beijing suspended dialogue 0:04:46.120 --> 0:04:49.279 with Washington over House Speaker Nancy Pelosi's visit to Taiwan 0:04:49.400 --> 0:04:52.320 back in August. Talk of a meeting between Defense Secretary 0:04:52.440 --> 0:04:55.840 Lloyd Austin and China Defense Minister Wave fun Her is 0:04:55.960 --> 0:04:58.200 just the latest scigned ties between the U S and 0:04:58.320 --> 0:05:01.360 China are starting to thaw. This after Chinese President she 0:05:01.520 --> 0:05:05.159 Jin Ping's recent meetings with President Biden and Vice President Harris, 0:05:05.480 --> 0:05:09.239 during which she emphasized more communication is needed. Biden officials 0:05:09.279 --> 0:05:12.479 have repeatedly called for guardrails to prevent tensions from getting 0:05:12.480 --> 0:05:15.680 out of hand in Washington. I maybe more as Bloomberg Daybreak, 0:05:15.760 --> 0:05:18.040 all right, Amy, thanks, Larry Summers is speaking out about 0:05:18.120 --> 0:05:21.960 US China relations. The former Treasury Secretary's warning US policymakers 0:05:22.080 --> 0:05:24.640 to focus on building the country's own economic strengths and 0:05:24.720 --> 0:05:27.920 its contest with China rather than on attacking its adversary. 0:05:28.279 --> 0:05:32.200 We in the United States probably need to be careful 0:05:32.279 --> 0:05:35.920 about our evangelizing influence. I don't think it's really for 0:05:36.200 --> 0:05:40.560 us to tell China how they should organize their entire society. 0:05:40.920 --> 0:05:44.160 Former Treasury Secretary Larry Summers made the comments on Bloomberg's 0:05:44.160 --> 0:05:47.240 Wall Street Week with David Weston. Catch the program Fridays 0:05:47.279 --> 0:05:50.280 at six pm Eastern on Bloomberg Radio and television, also 0:05:50.320 --> 0:05:53.480 on your favorite podcast platforms. Well in Washington this week, 0:05:53.600 --> 0:05:56.279 Nathan Clues from the feed our front and center again. 0:05:56.480 --> 0:05:59.200 The Central Bank issues minutes from its latest policy meeting 0:05:59.320 --> 0:06:02.440 just ahead at the Thanksgiving and Bloombery's Vinetal Judas has 0:06:02.440 --> 0:06:06.040 a preview. Fed officials lifted the benchmark interest rate by 0:06:06.040 --> 0:06:09.279 another hefty seventy five basis points at this month's policy 0:06:09.360 --> 0:06:12.800 session as they wage warrant inflation. The minutes that for 0:06:12.880 --> 0:06:16.280 release Wednesday could spell out details of the deliberations and 0:06:16.400 --> 0:06:19.640 what lies ahead. On Wall Street, there's broad consensus the 0:06:19.720 --> 0:06:22.240 federal raised the benchmark rat to about four point five 0:06:22.279 --> 0:06:25.119 percent next month, and then to around five percent early 0:06:25.240 --> 0:06:28.720 next year. There's also a full schedule of economic data 0:06:28.800 --> 0:06:31.760 this week for manufacturing to no home sales, and consumer 0:06:31.839 --> 0:06:36.479 sentiment numbers that should point the lackluster economic activity they 0:06:36.560 --> 0:06:39.200 eat out Judas boom birthday break Okay, Vinny, thanks And 0:06:39.240 --> 0:06:41.760 as we head into the holiday, investors are asking whether 0:06:41.839 --> 0:06:44.359 or not the bear market is over Well. Goldman Sachs 0:06:44.400 --> 0:06:47.160 says no. In fact, the firm strategists say the bear 0:06:47.240 --> 0:06:50.320 market will likely last through next year. Goldman predicts the 0:06:50.480 --> 0:06:53.599 SMP five hundred will end next year at four thousand points. 0:06:53.720 --> 0:06:57.680 That's just nine tenths of a percent higher than Friday's close. Well, 0:06:57.800 --> 0:07:00.880 futures are lower this morning. Nathan Us in futures down 0:07:00.960 --> 0:07:04.680 twenty one points down, futures down eighties seven, and now'day 0:07:04.760 --> 0:07:07.440 futures are down eighties six. The ten year treasury up 0:07:07.520 --> 0:07:10.840 one thirty second three point two percent of the yield 0:07:10.880 --> 0:07:14.559 in the two year four point five three percent. Straight ahead, 0:07:14.560 --> 0:07:17.520 your latest local headlines, plus a check of sports, and 0:07:18.000 --> 0:07:24.440 this is Bloomberg. Thank you. Carring at six oh seven 0:07:24.480 --> 0:07:27.320 on Wall St. Seven degrees in Central Park. Gotta crash 0:07:27.400 --> 0:07:29.960 westbound b QUE at the Williamsburg Bridge. We'll tell you 0:07:29.960 --> 0:07:32.600 about in traffic. First, Michael Barr has more on let's 0:07:32.640 --> 0:07:34.960 going on in New York and around the world. Good morning, Michael, 0:07:35.080 --> 0:07:37.760 Good morning Nathan. We're learning more about the suspect and 0:07:37.800 --> 0:07:41.080 the deadly shooting at an lgbt Q night club in 0:07:41.320 --> 0:07:46.160 Colorado Springs. Anderson leold Rich is in police custody. Last year, 0:07:46.200 --> 0:07:48.760 police were called to his mother's address on a report 0:07:48.880 --> 0:07:52.920 of a bomb and firearms threat. The weekend shooting left 0:07:52.960 --> 0:07:55.160 at least five people dead and more than two dozen 0:07:55.240 --> 0:07:59.560 others wounded. Colorado Springs Police Chief Adrian Vasquez says to 0:08:00.040 --> 0:08:03.560 club patrons subdued the gunman before more people could be killed. 0:08:04.000 --> 0:08:06.559 I hate to even venture a guess how many people 0:08:06.680 --> 0:08:09.920 could have been killed or injured beyond those already killed 0:08:10.240 --> 0:08:14.960 or injured. Truly heroes, those two chief, says. Authorities are 0:08:15.000 --> 0:08:18.640 studying old Ridge's social media posts trying to learn a 0:08:18.680 --> 0:08:22.000 motive for the mass shooting. Meanwhile, New York Governor Kathy 0:08:22.040 --> 0:08:25.280 Hokel is reacting to the deadly Colorado spring shooting. New 0:08:25.320 --> 0:08:27.720 York this is personal. This is the home of the 0:08:27.840 --> 0:08:31.280 lgbt Q movement. We have many, many friends who are 0:08:31.480 --> 0:08:35.200 now just devastated and concerned for their own safety. Governor 0:08:35.280 --> 0:08:38.320 Hokel says New York State Police will be increasing surveillance 0:08:38.360 --> 0:08:41.959 and protection for communities at risk of hate crimes. HOCl 0:08:42.040 --> 0:08:45.440 says two men were arrested over the weekend for threatening 0:08:45.480 --> 0:08:48.880 the Jewish community in New York City. The Buffalo area 0:08:49.080 --> 0:08:52.520 is digging out from a historic snowstorm. Western New York 0:08:52.640 --> 0:08:55.760 was clumbered by the Lake Effects snow. This woman who 0:08:55.840 --> 0:08:58.319 lives in Buffalo says the snow is putting up a 0:08:58.440 --> 0:09:01.600 fight against every use of equipment the city is throwing 0:09:01.640 --> 0:09:04.400 at it. The snow is so heavy and so deep 0:09:05.000 --> 0:09:08.120 that even these bulldozers are barely making a damp, and 0:09:08.800 --> 0:09:12.480 the snow removal process. So we see trucks going by 0:09:12.520 --> 0:09:15.800 full of snow, but they're not They're not touching our 0:09:15.880 --> 0:09:19.040 snow yet. Areas like Orchard Park got at least eighty 0:09:19.120 --> 0:09:22.439 inches of snow. The United Nations latest Climate summone in 0:09:22.520 --> 0:09:26.240 Egypt comes to a close after a marathon weekend of negotiations. 0:09:26.640 --> 0:09:29.920 There was one major breakthrough with cop and agreement by 0:09:30.040 --> 0:09:32.880 the world's developed nations to provide a fund for so 0:09:33.080 --> 0:09:36.280 called loss and damage to the poor and vulnerable nations 0:09:36.640 --> 0:09:40.440 most impacted by climate change. Global News twenty four hours 0:09:40.520 --> 0:09:43.680 a day on air and on Bloomberg Quick Tank, powered 0:09:43.720 --> 0:09:46.480 by more than twenty seven under journalist and analysts more 0:09:46.480 --> 0:09:49.840 than twenty countries. I'm Michael Barr, and this is Bloomberg Nathan. 0:09:49.960 --> 0:09:56.719 Thank you Michael six o nine on All Street time 0:09:56.720 --> 0:09:58.400 for the Bloomberge Sports up. They brought to you by 0:09:58.480 --> 0:10:00.720 Dry stayed out here with John Stash. All right, Nathan 0:10:00.720 --> 0:10:03.520 has been such a surprisingly good football season in New York. 0:10:03.760 --> 0:10:07.240 Until yesterday, the Giants had been winning. His underdogs. They 0:10:07.320 --> 0:10:09.880 lost as a favorite at MetLife to Trice. Jamal Williams 0:10:09.880 --> 0:10:12.839 scored three straight touchdowns. Lions went from down six three 0:10:12.920 --> 0:10:15.040 to up twenty four to six. They beat the Giants 0:10:15.360 --> 0:10:18.000 thirty one to eighteen. Quiet day for sake, Kwon Barkley 0:10:18.040 --> 0:10:20.440 on the twenty two rushing yards and Daniel Jones, who 0:10:20.440 --> 0:10:23.440 hadn't been intercepted since Week three, got picked off twice. Meanwhile, 0:10:23.760 --> 0:10:25.840 the three other teams in the NFC East all one 0:10:25.880 --> 0:10:29.319 Philadelphia now nine and one Dallas one forty three at 0:10:29.360 --> 0:10:32.320 Minnesota and the Cowboys are like the Giants seven of three, 0:10:32.360 --> 0:10:35.520 and the two teams play Thursday in Dallas. Washington won 0:10:35.559 --> 0:10:37.280 as well as for the Jets with a win in 0:10:37.320 --> 0:10:39.120 New England, they be in first place this late in 0:10:39.160 --> 0:10:41.319 the season for the first time twenty ten, and certainly 0:10:41.360 --> 0:10:44.160 looked like they were headed to overtime until the Jets 0:10:44.280 --> 0:10:47.559 tenth punk to the day staff waste time, pressure free 0:10:47.640 --> 0:10:50.240 punt and it's a good one to sing. Jones to 0:10:50.360 --> 0:10:55.200 back pedal right side to sixteen stabbed dressers under seven. 0:10:58.559 --> 0:11:10.200 The Twitter star Curt thanks you. It's ready to the call. 0:11:10.320 --> 0:11:12.960 The game winning eighty four yard point returned by rookie 0:11:13.000 --> 0:11:15.960 Marcus Jones, first point returned to touchdown in the NFL 0:11:16.080 --> 0:11:19.240 this season. It came with five seconds left. That's one 0:11:19.320 --> 0:11:21.520 ten three. They've now beating the Jets sport teens three 0:11:21.640 --> 0:11:24.959 time Nicks lost in Phoenix one sixteive or two and 0:11:25.000 --> 0:11:27.080 two on the road trip at ends tonight at Oklahoma City. 0:11:27.200 --> 0:11:30.680 Next back from their trip beat Memphis once to one fifteen. 0:11:30.920 --> 0:11:34.319 Tymie Irving returned from his suspension two o'clock today and 0:11:34.440 --> 0:11:37.440 kits are It's the US versus Wales and the World Cup. 0:11:37.760 --> 0:11:41.559 John Stashoward, Bloomberg Sports, Thank you, John SMP futures down 0:11:41.600 --> 0:11:44.240 down twenty one points down, futures down eighty six nest 0:11:44.320 --> 0:11:46.360 that futures are lower by eighty five points. Tany your 0:11:46.400 --> 0:11:49.560 treasury little changed the yield three point eight to percent, 0:11:49.960 --> 0:11:54.040 Disney shares of eight percent with Bob Iger coming back, 0:11:54.480 --> 0:11:58.680 we get analysis next from Geta Ranganathan, us media analyst 0:11:58.840 --> 0:12:02.959 at Bloomberg in Intelligence. You're listening to Bloomberg day Break. 0:12:07.360 --> 0:12:09.640 Bloomberg Sports Report was brought to you by Autie. Don't 0:12:09.720 --> 0:12:11.679 let someone else drive off in the out model you've 0:12:11.679 --> 0:12:14.400 always wanted. Visit your local tri state autie dealer to 0:12:14.440 --> 0:12:16.480 get behind the wheel of yours today, or visit autie 0:12:16.520 --> 0:12:24.000 offers dot com for more information, markets, headlines and breaking news. 0:12:24.160 --> 0:12:26.719 Twenty four hours a day at Bloomberg dot com, the 0:12:26.800 --> 0:12:30.319 Bloomberg Business at and at Bloomberg Quicktape. This is a 0:12:30.360 --> 0:12:39.880 Bloomberg business lash. And I'm Karen Moscow stocks are falling 0:12:39.920 --> 0:12:42.880 and the concerned that China Bae Titan COVID curbs after 0:12:42.960 --> 0:12:46.520 a string of reported deaths, with investors seeking shelter in 0:12:46.600 --> 0:12:48.760 the dollar. And we check the markets every fifteen minutes 0:12:48.800 --> 0:12:52.640 throughout the trading day on Bloomberg SMP futures down about 0:12:52.679 --> 0:12:55.640 twenty points this morning, down futures down seventy three, NASTACK 0:12:55.720 --> 0:12:58.920 futures down two the decks in Germany's down more than 0:12:59.000 --> 0:13:01.800 half percent. To your treasury little change all three point 0:13:01.840 --> 0:13:04.480 eight two percent yield on the two year four point 0:13:04.559 --> 0:13:07.600 five two percent. Nine X Screwed oil is down half 0:13:07.640 --> 0:13:10.320 percent or thirty eight cents, and seventy nine seventy cents 0:13:10.360 --> 0:13:13.040 of barrel comics gold down seven ten percent or two 0:13:13.120 --> 0:13:16.319 dollars twenty cents at seventeen fifty six eighty announced the 0:13:16.400 --> 0:13:19.880 euro one zero against a dollar, British pound one point 0:13:19.920 --> 0:13:22.319 one eight one five and the end one forty one 0:13:22.360 --> 0:13:25.280 point seven seven, and bitcoin is down one point one 0:13:25.320 --> 0:13:28.920 percent at about sixteen thousand dollars. We continue to watch 0:13:28.960 --> 0:13:30.839 shares of Walt Disney. They're up more than eight and 0:13:30.880 --> 0:13:33.760 a half percent after it brought back former leader Bob 0:13:33.800 --> 0:13:36.920 Iger as chief executive and as a Bloomberg business flash. 0:13:36.960 --> 0:13:38.959 Now here's Michael Barr with more on what's going on 0:13:39.080 --> 0:13:41.720 around the world. Michael Karen, thank you very much. It's 0:13:41.720 --> 0:13:44.199 twenty two year old gunman opened fire with a semi 0:13:44.280 --> 0:13:48.520 automatic rifle inside a gay nightclub in Colorado Springs, killing 0:13:48.640 --> 0:13:52.400 five people in leaving twenty five injured. Authorities say he 0:13:52.559 --> 0:13:56.400 was subdued by heroic patrons and arrested by police who 0:13:56.520 --> 0:13:59.839 arrived within minutes. The FBI continues to work with the 0:14:00.080 --> 0:14:03.000 to host state police combing through the town of Moscow. 0:14:03.200 --> 0:14:07.320 In the quadruple homicide of four University of Idaho students 0:14:07.320 --> 0:14:10.200 staffed to death more than a week ago, authorities are 0:14:10.240 --> 0:14:13.839 still looking for a suspect. In the NFL, the Giants lost, 0:14:13.880 --> 0:14:16.800 the Patriots beat the Jets and three on the last 0:14:16.960 --> 0:14:20.680 second punt return. The Ravens and Commanders were also winners. 0:14:21.040 --> 0:14:23.800 In the NBA, Kyrie Irving returned to the Nets as 0:14:23.880 --> 0:14:27.840 they beat the Grizzlies fift the Knicks lost, the Wizards 0:14:27.880 --> 0:14:31.360 and Warriors won. In soccer, the US plays Whales and 0:14:31.400 --> 0:14:34.200 the World Cup. Today, Global News twenty four hours a 0:14:34.280 --> 0:14:37.720 day on air and on Bloomberg Quicktake, powered by more 0:14:37.800 --> 0:14:40.280 than twenty seven under journalists and analysts more than a 0:14:40.360 --> 0:14:43.640 hundred twenty countries. Michael var and this is Bloomberg NA. 0:14:43.920 --> 0:14:46.160 Thanks Michael. Six nineteen on Wall Street Live from the 0:14:46.160 --> 0:14:49.920 Bloomberg Interactor Broker Studios. This is Bloomberg Daybreak. And speaking 0:14:49.960 --> 0:14:54.120 of returns, Bob Iger's coming back as CEO of the 0:14:54.160 --> 0:14:57.760 Walt Disney Company, replacing Bob Chapeck. We got that word 0:14:57.840 --> 0:15:00.600 overnight and it is sending shares of Disney soaring in 0:15:00.680 --> 0:15:03.920 the pre market. Let's get some analysis now. Gita Ranganathan 0:15:04.080 --> 0:15:08.040 joins this US media analyst at Bloomberg Intelligence. So I'll 0:15:08.080 --> 0:15:10.320 put the question right to you. Get to your reaction. 0:15:11.680 --> 0:15:15.600 Oh my goodness, Oh boy, was this a surprise. I 0:15:15.640 --> 0:15:19.160 mean really kind of a board from the blue, considering 0:15:19.240 --> 0:15:22.800 that they had just renewed Bob Chapex contract and it 0:15:22.920 --> 0:15:27.120 was going through. But I guess the last earnings report, 0:15:27.160 --> 0:15:30.400 which was the fiscal four key earnings report, was very, 0:15:30.520 --> 0:15:33.760 very disappointing across the board for investors, and I think 0:15:33.800 --> 0:15:37.120 that is what has prompted this move. How much of 0:15:37.200 --> 0:15:41.360 a change could we see from Bob Iger coming back 0:15:41.440 --> 0:15:46.960 given that Bob Speck was his handpicked successor. Yes, so 0:15:47.080 --> 0:15:49.720 it's kind of been a really tumultuous period I think 0:15:49.840 --> 0:15:52.840 for Bob chapec. Um, I mean, I mean he has 0:15:52.920 --> 0:15:56.160 really kind of garnered criticism for for so many things. Right, 0:15:56.160 --> 0:15:58.800 there's been it's not just the running of business, and 0:15:58.840 --> 0:16:01.720 there have been some unpopular business decisions, but there have 0:16:01.840 --> 0:16:04.960 been some public relations missteps, there have been political controversy. 0:16:05.040 --> 0:16:07.800 So obviously Bob Eiger is here to write that ship. 0:16:08.040 --> 0:16:10.920 But on the business front, Um, I mean, I think 0:16:11.240 --> 0:16:13.800 one of the things that kind of really spooked investors 0:16:13.960 --> 0:16:17.480 was just their guidance for next year and it was 0:16:17.640 --> 0:16:22.080 really really very very gloomy because we were expecting operating 0:16:22.120 --> 0:16:25.840 profits to increase by about twenty and they kind of 0:16:25.880 --> 0:16:30.560 guided to about nine. Obviously, costs are a problem. There's 0:16:30.600 --> 0:16:33.320 a problem with the legacy TV business, and then you 0:16:33.400 --> 0:16:36.640 know parks and again growing costs in that area. So 0:16:37.320 --> 0:16:40.400 Bob Eiger obviously has his work cut out for him. Yeah, 0:16:40.440 --> 0:16:43.880 I was gonna say, given the overall economic backdrop. I 0:16:43.920 --> 0:16:47.240 mean a lot of those cost concerns are being shared 0:16:47.280 --> 0:16:52.960 not just by Disney, but across the entertainment landscape, aren't they. Oh? Absolutely, 0:16:53.120 --> 0:16:55.680 And you know, I would argue that in many ways, 0:16:55.840 --> 0:16:58.360 Eiger is the best man for the job. He has 0:16:58.520 --> 0:17:00.760 kind of guided he has Naviga to the company for 0:17:01.040 --> 0:17:04.439 fifteen years as CEO. He's obviously been through this period 0:17:04.600 --> 0:17:07.520 of you know, recessions. He knows exactly what to do, 0:17:08.000 --> 0:17:11.760 and in many ways he has unfinished business here because, um, 0:17:12.720 --> 0:17:14.560 you know, this is what he started. He started this 0:17:14.680 --> 0:17:17.600 pivot to Disney class. It's kind of fitting that he 0:17:18.160 --> 0:17:21.159 comes back and kind of finishes what he started. And 0:17:21.200 --> 0:17:24.359 you're absolutely right about costs. So costs, we have two 0:17:24.480 --> 0:17:26.720 major cost centers right now. One is you know, the 0:17:26.800 --> 0:17:30.320 streaming business, and that business has already lost about eight 0:17:30.400 --> 0:17:33.480 billion dollars since it, you know, they first started it. 0:17:34.480 --> 0:17:37.399 And that is a major headache because you know, they 0:17:37.440 --> 0:17:40.600 did say that they will that they do expect to 0:17:41.359 --> 0:17:45.680 achieve break even in two years time. But again, you know, 0:17:45.760 --> 0:17:49.159 there was some words of caution given the economic cycle 0:17:49.560 --> 0:17:54.679 and then with Parks again, lots of inflationary pressures over there. Um, 0:17:54.920 --> 0:17:57.680 it's gonna be interesting to see what they do. Yeah, 0:17:57.800 --> 0:18:01.920 we have also gotten some word that activist investors on 0:18:02.119 --> 0:18:05.560 the Disney board had opposed Tiger returning. The Wall Street 0:18:05.640 --> 0:18:09.720 Journal uh saying among those is Nelson Pelts and Triumph 0:18:09.760 --> 0:18:14.040 Fund Management. Could activist investors be a hurdle for Bob 0:18:14.119 --> 0:18:17.399 Eiger coming back to CEO? I don't think so. I 0:18:17.480 --> 0:18:19.879 think just kind of you're looking at the share price 0:18:20.080 --> 0:18:23.919 right now. Obviously this is a move that is welcomed 0:18:24.119 --> 0:18:27.600 by investors, that is welcomed by analysts on Wall Street. 0:18:28.000 --> 0:18:31.080 I mean, this is a leader, probably one of arguably 0:18:31.119 --> 0:18:33.639 one of the best leaders in media. He has a 0:18:33.720 --> 0:18:37.119 stellar track record. He has navigated this company time and 0:18:37.200 --> 0:18:40.920 time again through a lot of different, you know, major upheavals. 0:18:41.240 --> 0:18:43.720 So I don't really think that the activist investors should 0:18:43.760 --> 0:18:46.760 create much of a hurdle. So in our last minute here, Geeta, 0:18:46.840 --> 0:18:49.880 do you see Bob Iger as more of a caretaker 0:18:50.080 --> 0:18:52.600 CEO at this point or is there a possibility that, 0:18:52.760 --> 0:18:56.640 if you know, the economic headwinds continue, that he could 0:18:56.640 --> 0:18:59.879 be asked to stay on even longer. I didn't have 0:19:00.000 --> 0:19:02.640 we're saying number with Bob Wiger, right, Yeah, he has 0:19:02.680 --> 0:19:05.040 been tasked to be at the company for at least 0:19:05.080 --> 0:19:08.840 two years to kind of pull it up, you know, 0:19:09.200 --> 0:19:12.440 through all of this very difficult situations that they're facing 0:19:12.560 --> 0:19:15.200 right now. He has also been tasked with the job 0:19:15.320 --> 0:19:17.600 of finding a successor. Obviously that didn't go so well 0:19:17.680 --> 0:19:21.200 last time, so who knows, but um, I think succession 0:19:21.200 --> 0:19:24.040 will definitely be a key issue on his agenda over 0:19:24.080 --> 0:19:27.000 the next two years, at least at the moment. Investors 0:19:28.000 --> 0:19:31.359 like this news big time. We're watching Disney shares now 0:19:31.480 --> 0:19:34.800 up nearly nine and a half percent in the pre market. 0:19:34.880 --> 0:19:38.120 Geta Ranganathan as always great to get your perspective. Geta 0:19:38.200 --> 0:19:43.399 Rongganathan is US media analyst at Bloomberg Intelligence. The broader 0:19:43.480 --> 0:19:47.160 market moving lower. SMP futures are down twenty points, staff 0:19:47.200 --> 0:19:51.280 features down seventy seven. NASDAC futures are down eighties seven points. 0:19:51.560 --> 0:19:55.040 The tenure treasury little change, yield three point eight two percent, 0:19:55.240 --> 0:19:57.320 and the yield on the two year right now four 0:19:57.880 --> 0:20:07.680 point five two percent. You're listening to Bloomberg Daybreak, Bloomberg 0:20:07.720 --> 0:20:10.000 eleventh three oh weather got a freeze warning till ten am. 0:20:10.040 --> 0:20:13.119 It's gonna stay chili today, low forties and a breeze, sunny, 0:20:13.600 --> 0:20:18.320 upper forties tomorrow, low fifties sunshine Wednesday, right now in 0:20:18.400 --> 0:20:25.760 Central Park, broadcasting live from the Bloomberg Interactive Broker Studio 0:20:25.920 --> 0:20:28.800 in New York. Bloomberg E Looving Free on to Washington, 0:20:28.880 --> 0:20:32.720 d C, Bloomberg on to Boston, Bloomberg one O six 0:20:32.800 --> 0:20:35.960 one does San Francisco Bloomberg and non sixteen to the country, 0:20:36.119 --> 0:20:39.080 Sirius XM to A one nineteen and around the globe 0:20:39.200 --> 0:20:43.200 the Bloomberg business in Bloomberg Radio dot com. This is 0:20:43.240 --> 0:20:52.000 Bloomberg Daybreak. It's six thirty on Wall Street. Good morning. 0:20:52.040 --> 0:20:54.920 I'm Nathan Hager and I'm Karen Moscow and we're just 0:20:55.040 --> 0:20:57.440 about three hours away from the Open of US training. 0:20:57.480 --> 0:20:59.200 It's time for the five things you need to know 0:20:59.320 --> 0:21:03.280 to start your Brought to you by Interactive Brokers ibk R. 0:21:03.359 --> 0:21:06.159 Event Trader offers a new way to trade futures. Use 0:21:06.200 --> 0:21:08.600 event contracts to trade your opinion on yes or no 0:21:08.760 --> 0:21:12.240 questions and key CME futurist markets. Learn more at event 0:21:12.320 --> 0:21:16.080 Trader dot Interactive Brokers dot com. Up First, a big 0:21:16.160 --> 0:21:19.560 shake up at Disney. Bob Chapeck is out as CEO 0:21:19.840 --> 0:21:23.879 and longtime company leader Bob Iger is taking over Bloomberg's 0:21:23.880 --> 0:21:26.760 alex Web says Eiger's goal will be super charging the 0:21:26.880 --> 0:21:30.439 streaming service Disney Plus. Disney made a massive pivot over 0:21:30.520 --> 0:21:33.560 the past two years under pressure from activist investors to 0:21:33.640 --> 0:21:37.679 make themselves more like Netflix and actually invest in streaming 0:21:37.720 --> 0:21:40.760 content Disney Plus, and they did that. Netflix then, of 0:21:40.800 --> 0:21:43.399 course has not had a brilliant yet, so Disney has 0:21:43.520 --> 0:21:45.720 has fallen sort of quite as much, but almost in 0:21:45.840 --> 0:21:47.560 lockstep with that. So this is an effort to fix 0:21:47.600 --> 0:21:50.840 some of that. Bloomberg's alex webs as a primary reason 0:21:50.880 --> 0:21:54.080 for chipecks dismissal was disney struggling share price. Right now, 0:21:54.200 --> 0:21:57.080 Disney shares they're up about nine percent. In the Wall 0:21:57.119 --> 0:21:59.960 Street Journal, Karen Is reporting that activist investor Nelson Fell 0:22:00.080 --> 0:22:03.600 supposes Iger's return. His firm Try and Fund Management required 0:22:03.640 --> 0:22:06.040 a stake worth more than eight hundred million dollars in Disney. 0:22:06.600 --> 0:22:10.000 Another corporate news Nathan more Twitter turmoil, the company's head 0:22:10.040 --> 0:22:13.199 of operations in Frances quit and more layoffs could come 0:22:13.280 --> 0:22:17.160 this week. CEO Elon Musk also welcomed former President Donald 0:22:17.200 --> 0:22:20.160 Trump and Yea, the artists formerly known as Kanye West, 0:22:20.520 --> 0:22:23.040 back to the platform must used a Twitter poll to 0:22:23.119 --> 0:22:28.119 determine Trump's reinstatement, which California Representative Adam Schiff said was irresponsible. 0:22:28.400 --> 0:22:31.040 It contradicts what Elon Musk said that he was going 0:22:31.080 --> 0:22:35.000 to establish a council to evaluate this, and further contradicts 0:22:35.480 --> 0:22:38.360 Musca and his claim concern about bots on his own 0:22:38.440 --> 0:22:41.240 platform to subject the decision to a poll on the 0:22:41.320 --> 0:22:44.880 platform that could be easily abused. Representative Adam Schiff made 0:22:44.880 --> 0:22:47.920 the comments on ABC News this week. Heard every Sunday 0:22:48.000 --> 0:22:51.480 on Bloomberg Radio. Markets Now Karen Us futures are falling 0:22:51.560 --> 0:22:54.680