Speaker 1: From the Bloomberg Interactive Brokers Studios. This is Bloomberg day
Speaker 1: Break or Wednesday, April nineteenth.
Speaker 2: Coming up today, a last minute settlement in the voting
Speaker 2: machine defamation case against Fox News.
Speaker 1: Disney and Meta start cutting thousands of jobs as soon
Speaker 1: as today.
Speaker 2: We're tracking Netflix shares after subscriber growth disappoints.
Speaker 1: And House Republicans prepare a vote on a bill to
Speaker 1: raise the deadlimit.
Speaker 3: At least one person is dead after a parking garage
Speaker 3: collapse in Manhattan. Plus a big ruling from the Supreme
Speaker 3: Court today involving a common abortion drug. I'm Michael bar
Speaker 3: Or Ahead, I'm johns stash errand towards.
Speaker 4: The Knicks lost game too in Cleveland, The Rangers one
Speaker 4: game one from the Devils.
Speaker 3: The Mets and Yankees both lost.
Speaker 5: That's all straight Ahead on Bloomberg day Break, the business
Speaker 5: news you need to sturn your day in just one
Speaker 5: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg
Speaker 5: Business Appen everywhere you get your podcasts.
Speaker 2: Good morning, I'm Nathan.
Speaker 1: Hager and I'm Amy Morris. Here are the stories we're
Speaker 1: following today.
Speaker 2: We begin with a landmark settlement in dominion voting systems
Speaker 2: defamation lawsuit against Fox. Bloomberg's Ed. Baxter has the very latest.
Speaker 6: The agreement reached just hours after the jury was seated
Speaker 6: and just before opening arguments. Dominion CEO John Poulus.
Speaker 2: Fox has admitted to telling lies about Dominion that caused
Speaker 2: enormous damage to my company.
Speaker 6: Dominion attorney Justin Nelson says, very important as well.
Speaker 2: For our democracy to endure, we must share a commitment
Speaker 2: to facts.
Speaker 6: For Fox, it avoids an embarrassing trial. You won't see
Speaker 6: the personalities on the stand. It says it is a
Speaker 6: validation of its journalistic principles. In San Francisco, I'm at
Speaker 6: Baxter Bloomberg Daybreak.
Speaker 1: Thank you, Ed. Job cuts are continuing across corporate America,
Speaker 1: and two big names on Wall Street are getting ready
Speaker 1: for layoffs as soon as today. We get the latest
Speaker 1: Live with Bloomberg's John Tucker, John and Amy.
Speaker 7: They are household names and they're cleaning house. They are
Speaker 7: Disney and Facebook parent Meta platforms. Let's start with Meta.
Speaker 7: Those layoffs start today and they are company wide. This
Speaker 7: move is part of a cost cutting push that will
Speaker 7: eventually whittle away ten thousand positions. Metta's got experience doing this.
Speaker 7: They slashed eleven thousand jobs in November to ease the pain.
Speaker 7: Meta wants everybody in the US to work from home today,
Speaker 7: and now Disney they're cutting thousands with a whopping fifteen
Speaker 7: percent of its entertainment division that starts next week. The
Speaker 7: cuts will span TV, film, theme parks, and corporate positions
Speaker 7: and in fact, every region where Disney operates. Disney wants
Speaker 7: to save five point five billion dollars in costs. Live
Speaker 7: in New Yorkcome John Tucker, Bloomberg Radio.
Speaker 2: Okay, John, thank you.
Speaker 3: We know.
Speaker 2: Turning two earnings on Wall Street, investors and analysts continue
Speaker 2: to adjust the latest results from Netflix. The shares dropped
Speaker 2: as much as twelve percent after hours. Now they're down
Speaker 2: about three quarters of one percent. The streaming giant reported
Speaker 2: lower than expected subscriber gains at the same time, it's
Speaker 2: starting to crack down on US viewers who share accounts.
Speaker 2: Netflix says that should boost growth in the second half.
Speaker 2: Right now, subscriber growth is not the focus for Gradient Investments.
Speaker 2: Senior portfolio manager Mary and Montagne.
Speaker 8: I think I'd be more interested in profitability and the
Speaker 8: fact that we're in a year where we're comparing against
Speaker 8: still some COVID impact in different parts of the world.
Speaker 8: I would say that we need to stop focusing on
Speaker 8: the subscription growth and really focus on, as I said,
Speaker 8: free cash flow growth.
Speaker 2: Mary and Montane and Gradient Investment says more than one
Speaker 2: hundred million people currently use a Netflix account they do
Speaker 2: not pay for Nathan.
Speaker 1: Big Bank earnings continue today. Morgan Stanley reports this morning,
Speaker 1: and we get a preview with Bloomberg'sjeff Bellinger.
Speaker 9: And the lists and investors will zero in on the
Speaker 9: area where Morgan Stanley has its heaviest focus, revenue from
Speaker 9: the trading of equities that outweighs fixed income, currencies and
Speaker 9: commodities at the bank. Jeffreys Financial Group estimates first quarter
Speaker 9: industry trading volumes for equities. We're down seven percent from
Speaker 9: the prior first quarter. We'll see the numbers before the
Speaker 9: market's open this morning. Jeff Bullinger, Bloomberg Day Break.
Speaker 2: Thank you, Jeff. Let's turn to politics now and the
Speaker 2: latest on the fight over the dead ceiling. House Republicans
Speaker 2: plan to vote next week on a bill to suspend
Speaker 2: the nation's borrowing cap for a year and bring deep
Speaker 2: cuts to government spending. It'll be crucial for Speaker Kevin
Speaker 2: McCarthy to get his thin majority behind this bill. That's
Speaker 2: according to Douglas Holtzeken of the American Action Foreign Policy Institute.
Speaker 3: They have to.
Speaker 10: Coalesce and they have to lay down a market that
Speaker 10: says this is what we want and this is what
Speaker 10: we can pass. And if they do that, you know,
Speaker 10: it goes over to the Senate. At that point, it's
Speaker 10: impossible for the White House not to engage and give
Speaker 10: the majority leader in the send some guidance about how
Speaker 10: they should modify the legislation, and then there's really going
Speaker 10: to be a serious negotiation.
Speaker 2: Douglas Holtzeke and spoke with our Washington correspondent Joe Matthew
Speaker 2: on Bloomberg Sound on. Catch the show weekdays one pm
Speaker 2: Eastern on Bloomberg Radio, or listen on demand wherever you
Speaker 2: get your podcasts.
Speaker 1: And overseas this morning. Inflation continues to be a major
Speaker 1: problem in Britain. The UK's consumer price index rows ten
Speaker 1: point one percent from a year ago, driven by the
Speaker 1: strongest increase in food prices in more than four decades.
Speaker 1: Economists set expected to slow down to below ten percent.
Speaker 1: Bloomberg Economic correspondent Lizzie Burden has more.
Speaker 11: Was kept high by food and non alcoholic drinks. That's
Speaker 11: going to be very painful for your average brit who,
Speaker 11: of course spends more on essentials as a share of
Speaker 11: their income. In fact, the annual rate of inflation for
Speaker 11: those goods is its highest since nineteen seventy seven. So
Speaker 11: another course appoint hike from the Bank of England looking
Speaker 11: pretty much nailed on next month.
Speaker 1: Bloomberg's Lizzie Burden says the Bank of England's next meets
Speaker 1: on May eleventh. Traders now predict two consecutive rate hikes
Speaker 1: in both May and June. They also see a peace
Speaker 1: interest rate from the BOE hitting five percent. That's up
Speaker 1: a full percentage point from the current level.
Speaker 2: Amy, we're getting word of more price cuts at Tesla.
Speaker 2: The electric vehicle maker is marking down the sticker price
Speaker 2: on its long range model YSUV by five point six percent.
Speaker 2: It'll now come in at roughly fifty thousand dollars. The
Speaker 2: cost of a base Tesla Model three is being cut
Speaker 2: by four point seven percent. That will now cost about
Speaker 2: forty thousand dollars. Tesla reports its latest quarterly earnings after
Speaker 2: the closing bell straight ahead. We have your latest local headlines,
Speaker 2: plus a check of sports. You're listening to Bloomberg Daybreak.
Speaker 2: It's forty five degrees in New York. We're expecting sunshine
Speaker 2: today and highs in the upper sixties. Time out to
Speaker 2: take a look at some of the other stories making
Speaker 2: news in New York and around the world with Bloomberg
Speaker 2: S Michael bar Good morning, Michael.
Speaker 3: Good morning Nathan. We're learning more about the deadly building
Speaker 3: collapse in Lower Manhattan. Witnesses say the four story parking
Speaker 3: garage pancake without warning yesterday, sending car, some men and
Speaker 3: people crashing down to a basement. One garage worker was
Speaker 3: killed and five others survived. This man works nearby.
Speaker 10: We heard a big boom, like something like out of
Speaker 10: the ordinary.
Speaker 2: It just was a really loud noise like something exploded,
Speaker 2: and I saw people running out quickly from the scene.
Speaker 3: New York Flying Department Chief of Operations John Espositos said
Speaker 3: the building was deemed to be unstable and firefighters had
Speaker 3: to pull out. As Posito says, though the department's robotics
Speaker 3: happened to be nearby at the time, we.
Speaker 12: Deployed our robot dog into the building they were able
Speaker 12: to give us a video inside, and then we were
Speaker 12: able to fly our drones inside to conduct an assessment
Speaker 12: and conduct searches.
Speaker 3: Police Commissioner Keitchen Seles says there will be an investigation,
Speaker 3: but we have no reason.
Speaker 10: To believe that this is anything other than.
Speaker 2: A structural collapse.
Speaker 3: Records show the parking garage had sixty four violations since
Speaker 3: nineteen seventy six. Today, the Supreme Court is expected to
Speaker 3: decide whether to allow a ruling by a conservative Texas
Speaker 3: judge to stand drastically limiting access to MiFi pristone, the
Speaker 3: most common abortion medication in the country. It was approved
Speaker 3: by the FDA more than twenty years ago. International human
Speaker 3: rights lawyer Paua Alvia Gien is the executive director of
Speaker 3: the Women's Equality Center.
Speaker 13: A question that the Court needs to resolve eve the
Speaker 13: authority of FDA is an authority, for instance, a federal
Speaker 13: josh in this case in Texas, cool overright.
Speaker 3: The case comes less than a year after the Conservative
Speaker 3: majority overturned Roe v. Wade. Massachusetts Air National guardsman Jack
Speaker 3: to share a charge with leaking highly classified military documents
Speaker 3: is due back in court today for a hearing to
Speaker 3: decide whether he should remain behind bars while he awaits trial.
Speaker 3: More than one hundred and fifty five thousand federal workers
Speaker 3: in Canada are on strike after wage talks with Prime
Speaker 3: Minister Justin Trudeau's government failed. The labor disruption is expected
Speaker 3: to impede government functions, including passports and immigration applications. Global
Speaker 3: News twenty four hours a day, powered by more than
Speaker 3: twenty seven hundred journalist and analysts in over one hundred
Speaker 3: and twenty countries. On Michael Bahar This is Bloomberg, Nathan.
Speaker 2: Thanks Michael. Time now for our Bloomberg Sports update. For
Speaker 2: that we bring in John Stashauer. Thanks Naith In.
Speaker 4: This Knicks caz series figures to be a long one.
Speaker 4: Not a surprise that after the next pulled out Game
Speaker 4: one in Cleveland, they were unable to win games two.
Speaker 4: The surprise was the ease with which the Cavs won,
Speaker 4: up by twenty points in the first half. Cleveland won
Speaker 4: going away one oh seven to ninety. Donovan Mitchell, who
Speaker 4: scored thirty eight points in that game one, had less
Speaker 4: than half that that. The slack more than picked up
Speaker 4: by Darius Garland, who poured in thirty two points, made
Speaker 4: six three pointners, Chris Lavert off the bench for twenty
Speaker 4: four The Knick shot just thirty seven percent and they
Speaker 4: had seventeen turnovers. Game three Friday at the Garden, also
Speaker 4: in the NBA home wins for Boston and Phoenix as poorly.
Speaker 4: The next play, that's how well the Rangers played in
Speaker 4: the Jermsekin.
Speaker 7: Baller knocks it back out to center ice, but Tatar
Speaker 7: brings it back in battles there with Bursula's slides back
Speaker 7: out to Miller, Miller out to the wing.
Speaker 3: With a shot on the floor between.
Speaker 7: The circles the Rangers as It's Vladimir Tarasenko to get
Speaker 7: the first goal the postseason for the Rangers and they
Speaker 7: take one another.
Speaker 3: Lead on ESPN.
Speaker 4: New York Rangers went on to beat the Devils five
Speaker 4: to one a pair of power play goals for Chris Quider.
Speaker 4: The only New Jersey goal came on a late penalty
Speaker 4: shot by Jack Hughes. Also winning the NHL Tampa Bay
Speaker 4: Winnipeg and the first ever playoff win for the Seattle
Speaker 4: Kraken at the Stadium show hey O Tony second bat
Speaker 4: of the game, two run homer Angels went on to
Speaker 4: beat the Yankees five to two on the one hundredth
Speaker 4: anniversary of the opening of the Yankee Stadium, and the
Speaker 4: other four teams in the Al East all one, including
Speaker 4: Tampa Bay, who is now fifteen and three in LA
Speaker 4: JD Martinez two home runs Clayton Kershaw's two hundredth career victory.
Speaker 4: The Dodgers shut out the Mets five to nothing.
Speaker 10: John Stashieway gloom Brooks Sports.
Speaker 5: Livem coast to coast from New York to San Francisco,
Speaker 5: Boston to Washington, d C. Nationwide on SIRIUSXAM, the Bloomberg
Speaker 5: Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 5: Good morning, I'm Nathan Hager. Let's get back to some
Speaker 5: of our top stories this morning. A massive settlement in
Speaker 5: dominion voting systems, defamation lawsuit against Fox News, even more
Speaker 5: job cuts coming at meta platforms in Disney, and a
Speaker 5: sluggish earnings report from Netflix. Lots to talk about this
Speaker 5: morning with Bloomberg's Alex Webb, who joins me now. Alex,
Speaker 5: great to speak with you.
Speaker 2: As always, we should talk about the terms of this
Speaker 2: settlement for dominion systems that really did come at the
Speaker 2: last minute. Seven hundred and eighty seven and a half
Speaker 2: million dollars. That's less than half the one point six
Speaker 2: billion Dominion was looking for, but a lot more than
Speaker 2: many analysts expected.
Speaker 14: Yeah, it's certainly a big chunk of change. It's the
Speaker 14: thing that actually a lot of people are keen to
Speaker 14: know is whether it also included an apollo from Fox.
Speaker 14: It is something that they can afford. They have, you know,
Speaker 14: cash of four billion dollars in net debt, but of course,
Speaker 14: uh cash at hand a four billion dollars, So it's
Speaker 14: not going to make a significant dent in their finances,
Speaker 14: although clearly not something that they're going to be delighted
Speaker 14: to pay. The real thing they're avoiding here is Rubert
Speaker 14: Murdock getting up on the stand, other Fox executives and
Speaker 14: personalities getting up the stand and bringing more embarrassment to
Speaker 14: the network in a way that you know, could potentially
Speaker 14: not only damage their reputation for non core viewers, but
Speaker 14: also for their core audience.
Speaker 2: So New Fox News has the cash flowd to handle this,
Speaker 2: but of course the network has seen something of a
Speaker 2: subscriber exit I'm sorry it an advertiser exodus in recent years.
Speaker 2: I mean, what could this settlement mean as far as
Speaker 2: how Fox's business goes going forward here given the advertiser environment,
Speaker 2: I mean.
Speaker 14: If the forecast for the company are not terribly bullish,
Speaker 14: the expectation over the next two to three years is
Speaker 14: that both ebit done net income gradually decline. It is
Speaker 14: a difficult space when you've got you do have some
Speaker 14: competition althocially, not as significant as Fox had anticipated from
Speaker 14: the Newsmaxes of the world. It's I think the thing
Speaker 14: they might be looking for, frankly, is a good Donald
Speaker 14: Trump run because the more engaging Donald Trump is, the
Speaker 14: more engaged their audience becomes. That is something that benefits them.
Speaker 14: So the election cycle will be hugely important for their earnings.
Speaker 14: The appetite of you know, advertisers, they sometimes shy away
Speaker 14: in the short term when there is damage. We've seen
Speaker 14: time and again that they do return in the medium
Speaker 14: to long term if they think the audience is there.
Speaker 2: Speaking of the advertiser environment, I was thinking about subscribers
Speaker 2: because of the focus this morning as well on the
Speaker 2: job cuts coming at meta platforms and as well, we
Speaker 2: knew that both companies were bringing the acts down and
Speaker 2: I guess we're getting a better idea of just exactly
Speaker 2: where the actes are going to fall.
Speaker 14: Yeah, it was particularly interesting at Meta that they are
Speaker 14: going to be cutting jobs in the reality Labs division,
Speaker 14: which you know, not a year ago, was considered by management,
Speaker 14: at least in terms of their public statements, the big
Speaker 14: future of the company. In the past couple of quarters,
Speaker 14: they've sort of tamped back on big public statements about
Speaker 14: the prospects for the Metaverse, and frankly they've been rewarded
Speaker 14: for it, along with the significant job cuts they've been doing.
Speaker 14: In the order of seventeen thousand job cuts of what
Speaker 14: have been announced. This was been, you know, characterized by
Speaker 14: the company as a year of efficiency, and the stock
Speaker 14: is up seventy five eighty percent, you know, partly as
Speaker 14: a consequence of that Disney. You know, they have also
Speaker 14: been cutting some jobs. It's interesting they are cutting jobs
Speaker 14: in the entertainment division, which you know, is considered by
Speaker 14: many to be the court business, even if they sometimes
Speaker 14: make more money from theme parks and elsewhere. But it
Speaker 14: shows that actually just inventing, sort of investing limitlessly in
Speaker 14: content is no longer considered the priority.
Speaker 12: You know.
Speaker 2: It's I got to talk about Netflix earnings weaker than
Speaker 2: expected subscriber growth. Now they're saying passwords sharing could be
Speaker 2: what gets them going in the second half. How much
Speaker 2: can Netflix ring out of subscribers who don't pay at
Speaker 2: this point.
Speaker 14: I mean, you know, that is the sort of fifty
Speaker 14: billion dollar question. There are one hundred million people they
Speaker 14: estimate share passwords. The key question now is whether they
Speaker 14: can convert five percent or fifty percent of those into
Speaker 14: paying subscribers. The quarterly subscriber growth is one and three
Speaker 14: quarter million. That was less than two point four million
Speaker 14: people that expected. So even if you get five to
Speaker 14: ten percent of those people to convert, that's a meaningful
Speaker 14: difference when it comes to those overall numbers, and has
Speaker 14: been enough to hamp back some of the fears around NETFLI,
Speaker 14: the stoken nishitifel twelve percent in off grouse trading is
Speaker 14: recovered quite a lot in a one stage.
Speaker 2: Of trading up Today. This is Bloomberg day Break Today,
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Speaker 2: Street to Washington and beyond.
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