WEBVTT - Fox & Dominion Settle; Disney & Meta Job Cuts

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<v Speaker 1>From the Bloomberg Interactive Brokers Studios. This is Bloomberg day

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<v Speaker 1>Break or Wednesday, April nineteenth.

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<v Speaker 2>Coming up today, a last minute settlement in the voting

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<v Speaker 2>machine defamation case against Fox News.

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<v Speaker 1>Disney and Meta start cutting thousands of jobs as soon

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<v Speaker 1>as today.

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<v Speaker 2>We're tracking Netflix shares after subscriber growth disappoints.

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<v Speaker 1>And House Republicans prepare a vote on a bill to

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<v Speaker 1>raise the deadlimit.

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<v Speaker 3>At least one person is dead after a parking garage

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<v Speaker 3>collapse in Manhattan. Plus a big ruling from the Supreme

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<v Speaker 3>Court today involving a common abortion drug. I'm Michael bar

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<v Speaker 3>Or Ahead, I'm johns stash errand towards.

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<v Speaker 4>The Knicks lost game too in Cleveland, The Rangers one

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<v Speaker 4>game one from the Devils.

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<v Speaker 3>The Mets and Yankees both lost.

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<v Speaker 5>That's all straight Ahead on Bloomberg day Break, the business

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<v Speaker 5>news you need to sturn your day in just one

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<v Speaker 5>fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

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<v Speaker 5>Business Appen everywhere you get your podcasts.

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<v Speaker 2>Good morning, I'm Nathan.

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<v Speaker 1>Hager and I'm Amy Morris. 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 a landmark settlement in dominion voting systems

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<v Speaker 2>defamation lawsuit against Fox. Bloomberg's Ed. Baxter has the very latest.

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<v Speaker 6>The agreement reached just hours after the jury was seated

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<v Speaker 6>and just before opening arguments. Dominion CEO John Poulus.

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<v Speaker 2>Fox has admitted to telling lies about Dominion that caused

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<v Speaker 2>enormous damage to my company.

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<v Speaker 6>Dominion attorney Justin Nelson says, very important as well.

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<v Speaker 2>For our democracy to endure, we must share a commitment

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<v Speaker 2>to facts.

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<v Speaker 6>For Fox, it avoids an embarrassing trial. You won't see

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<v Speaker 6>the personalities on the stand. It says it is a

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<v Speaker 6>validation of its journalistic principles. In San Francisco, I'm at

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<v Speaker 6>Baxter Bloomberg Daybreak.

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<v Speaker 1>Thank you, Ed. Job cuts are continuing across corporate America,

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<v Speaker 1>and two big names on Wall Street are getting ready

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<v Speaker 1>for layoffs as soon as today. We get the latest

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<v Speaker 1>Live with Bloomberg's John Tucker, John and Amy.

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<v Speaker 7>They are household names and they're cleaning house. They are

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<v Speaker 7>Disney and Facebook parent Meta platforms. Let's start with Meta.

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<v Speaker 7>Those layoffs start today and they are company wide. This

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<v Speaker 7>move is part of a cost cutting push that will

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<v Speaker 7>eventually whittle away ten thousand positions. Metta's got experience doing this.

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<v Speaker 7>They slashed eleven thousand jobs in November to ease the pain.

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<v Speaker 7>Meta wants everybody in the US to work from home today,

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<v Speaker 7>and now Disney they're cutting thousands with a whopping fifteen

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<v Speaker 7>percent of its entertainment division that starts next week. The

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<v Speaker 7>cuts will span TV, film, theme parks, and corporate positions

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<v Speaker 7>and in fact, every region where Disney operates. Disney wants

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<v Speaker 7>to save five point five billion dollars in costs. Live

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<v Speaker 7>in New Yorkcome John Tucker, Bloomberg Radio.

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<v Speaker 2>Okay, John, thank you.

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<v Speaker 3>We know.

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<v Speaker 2>Turning two earnings on Wall Street, investors and analysts continue

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<v Speaker 2>to adjust the latest results from Netflix. The shares dropped

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<v Speaker 2>as much as twelve percent after hours. Now they're down

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<v Speaker 2>about three quarters of one percent. The streaming giant reported

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<v Speaker 2>lower than expected subscriber gains at the same time, it's

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<v Speaker 2>starting to crack down on US viewers who share accounts.

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<v Speaker 2>Netflix says that should boost growth in the second half.

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<v Speaker 2>Right now, subscriber growth is not the focus for Gradient Investments.

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<v Speaker 2>Senior portfolio manager Mary and Montagne.

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<v Speaker 8>I think I'd be more interested in profitability and the

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<v Speaker 8>fact that we're in a year where we're comparing against

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<v Speaker 8>still some COVID impact in different parts of the world.

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<v Speaker 8>I would say that we need to stop focusing on

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<v Speaker 8>the subscription growth and really focus on, as I said,

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<v Speaker 8>free cash flow growth.

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<v Speaker 2>Mary and Montane and Gradient Investment says more than one

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<v Speaker 2>hundred million people currently use a Netflix account they do

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<v Speaker 2>not pay for Nathan.

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<v Speaker 1>Big Bank earnings continue today. Morgan Stanley reports this morning,

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<v Speaker 1>and we get a preview with Bloomberg'sjeff Bellinger.

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<v Speaker 9>And the lists and investors will zero in on the

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<v Speaker 9>area where Morgan Stanley has its heaviest focus, revenue from

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<v Speaker 9>the trading of equities that outweighs fixed income, currencies and

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<v Speaker 9>commodities at the bank. Jeffreys Financial Group estimates first quarter

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<v Speaker 9>industry trading volumes for equities. We're down seven percent from

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<v Speaker 9>the prior first quarter. We'll see the numbers before the

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<v Speaker 9>market's open this morning. Jeff Bullinger, Bloomberg Day Break.

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<v Speaker 2>Thank you, Jeff. Let's turn to politics now and the

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<v Speaker 2>latest on the fight over the dead ceiling. House Republicans

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<v Speaker 2>plan to vote next week on a bill to suspend

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<v Speaker 2>the nation's borrowing cap for a year and bring deep

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<v Speaker 2>cuts to government spending. It'll be crucial for Speaker Kevin

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<v Speaker 2>McCarthy to get his thin majority behind this bill. That's

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<v Speaker 2>according to Douglas Holtzeken of the American Action Foreign Policy Institute.

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<v Speaker 3>They have to.

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<v Speaker 10>Coalesce and they have to lay down a market that

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<v Speaker 10>says this is what we want and this is what

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<v Speaker 10>we can pass. And if they do that, you know,

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<v Speaker 10>it goes over to the Senate. At that point, it's

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<v Speaker 10>impossible for the White House not to engage and give

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<v Speaker 10>the majority leader in the send some guidance about how

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<v Speaker 10>they should modify the legislation, and then there's really going

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<v Speaker 10>to be a serious negotiation.

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<v Speaker 2>Douglas Holtzeke and spoke with our Washington correspondent Joe Matthew

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<v Speaker 2>on Bloomberg Sound on. Catch the show weekdays one pm

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<v Speaker 2>Eastern on Bloomberg Radio, or listen on demand wherever you

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<v Speaker 2>get your podcasts.

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<v Speaker 1>And overseas this morning. Inflation continues to be a major

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<v Speaker 1>problem in Britain. The UK's consumer price index rows ten

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<v Speaker 1>point one percent from a year ago, driven by the

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<v Speaker 1>strongest increase in food prices in more than four decades.

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<v Speaker 1>Economists set expected to slow down to below ten percent.

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<v Speaker 1>Bloomberg Economic correspondent Lizzie Burden has more.

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<v Speaker 11>Was kept high by food and non alcoholic drinks. That's

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<v Speaker 11>going to be very painful for your average brit who,

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<v Speaker 11>of course spends more on essentials as a share of

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<v Speaker 11>their income. In fact, the annual rate of inflation for

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<v Speaker 11>those goods is its highest since nineteen seventy seven. So

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<v Speaker 11>another course appoint hike from the Bank of England looking

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<v Speaker 11>pretty much nailed on next month.

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<v Speaker 1>Bloomberg's Lizzie Burden says the Bank of England's next meets

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<v Speaker 1>on May eleventh. Traders now predict two consecutive rate hikes

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<v Speaker 1>in both May and June. They also see a peace

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<v Speaker 1>interest rate from the BOE hitting five percent. That's up

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<v Speaker 1>a full percentage point from the current level.

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<v Speaker 2>Amy, we're getting word of more price cuts at Tesla.

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<v Speaker 2>The electric vehicle maker is marking down the sticker price

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<v Speaker 2>on its long range model YSUV by five point six percent.

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<v Speaker 2>It'll now come in at roughly fifty thousand dollars. The

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<v Speaker 2>cost of a base Tesla Model three is being cut

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<v Speaker 2>by four point seven percent. That will now cost about

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<v Speaker 2>forty thousand dollars. Tesla reports its latest quarterly earnings after

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<v Speaker 2>the closing bell straight ahead. We have your latest local headlines,

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<v Speaker 2>plus a check of sports. You're listening to Bloomberg Daybreak.

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<v Speaker 2>It's forty five degrees in New York. We're expecting sunshine

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<v Speaker 2>today and highs in the upper sixties. Time out to

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<v Speaker 2>take a look at some of the other stories making

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<v Speaker 2>news in New York and around the world with Bloomberg

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<v Speaker 2>S Michael bar Good morning, Michael.

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<v Speaker 3>Good morning Nathan. We're learning more about the deadly building

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<v Speaker 3>collapse in Lower Manhattan. Witnesses say the four story parking

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<v Speaker 3>garage pancake without warning yesterday, sending car, some men and

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<v Speaker 3>people crashing down to a basement. One garage worker was

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<v Speaker 3>killed and five others survived. This man works nearby.

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<v Speaker 10>We heard a big boom, like something like out of

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<v Speaker 10>the ordinary.

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<v Speaker 2>It just was a really loud noise like something exploded,

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<v Speaker 2>and I saw people running out quickly from the scene.

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<v Speaker 3>New York Flying Department Chief of Operations John Espositos said

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<v Speaker 3>the building was deemed to be unstable and firefighters had

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<v Speaker 3>to pull out. As Posito says, though the department's robotics

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<v Speaker 3>happened to be nearby at the time, we.

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<v Speaker 12>Deployed our robot dog into the building they were able

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<v Speaker 12>to give us a video inside, and then we were

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<v Speaker 12>able to fly our drones inside to conduct an assessment

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<v Speaker 12>and conduct searches.

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<v Speaker 3>Police Commissioner Keitchen Seles says there will be an investigation,

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<v Speaker 3>but we have no reason.

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<v Speaker 10>To believe that this is anything other than.

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<v Speaker 2>A structural collapse.

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<v Speaker 3>Records show the parking garage had sixty four violations since

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<v Speaker 3>nineteen seventy six. Today, the Supreme Court is expected to

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<v Speaker 3>decide whether to allow a ruling by a conservative Texas

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<v Speaker 3>judge to stand drastically limiting access to MiFi pristone, the

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<v Speaker 3>most common abortion medication in the country. It was approved

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<v Speaker 3>by the FDA more than twenty years ago. International human

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<v Speaker 3>rights lawyer Paua Alvia Gien is the executive director of

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<v Speaker 3>the Women's Equality Center.

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<v Speaker 13>A question that the Court needs to resolve eve the

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<v Speaker 13>authority of FDA is an authority, for instance, a federal

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<v Speaker 13>josh in this case in Texas, cool overright.

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<v Speaker 3>The case comes less than a year after the Conservative

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<v Speaker 3>majority overturned Roe v. Wade. Massachusetts Air National guardsman Jack

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<v Speaker 3>to share a charge with leaking highly classified military documents

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<v Speaker 3>is due back in court today for a hearing to

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<v Speaker 3>decide whether he should remain behind bars while he awaits trial.

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<v Speaker 3>More than one hundred and fifty five thousand federal workers

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<v Speaker 3>in Canada are on strike after wage talks with Prime

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<v Speaker 3>Minister Justin Trudeau's government failed. The labor disruption is expected

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<v Speaker 3>to impede government functions, including passports and immigration applications. Global

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<v Speaker 3>News twenty four hours a day, powered by more than

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<v Speaker 3>twenty seven hundred journalist and analysts in over one hundred

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<v Speaker 3>and twenty countries. On Michael Bahar This is Bloomberg, Nathan.

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<v Speaker 2>Thanks Michael. Time now for our Bloomberg Sports update. For

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<v Speaker 2>that we bring in John Stashauer. Thanks Naith In.

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<v Speaker 4>This Knicks caz series figures to be a long one.

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<v Speaker 4>Not a surprise that after the next pulled out Game

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<v Speaker 4>one in Cleveland, they were unable to win games two.

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<v Speaker 4>The surprise was the ease with which the Cavs won,

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<v Speaker 4>up by twenty points in the first half. Cleveland won

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<v Speaker 4>going away one oh seven to ninety. Donovan Mitchell, who

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<v Speaker 4>scored thirty eight points in that game one, had less

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<v Speaker 4>than half that that. The slack more than picked up

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<v Speaker 4>by Darius Garland, who poured in thirty two points, made

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<v Speaker 4>six three pointners, Chris Lavert off the bench for twenty

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<v Speaker 4>four The Knick shot just thirty seven percent and they

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<v Speaker 4>had seventeen turnovers. Game three Friday at the Garden, also

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<v Speaker 4>in the NBA home wins for Boston and Phoenix as poorly.

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<v Speaker 4>The next play, that's how well the Rangers played in

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<v Speaker 4>the Jermsekin.

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<v Speaker 7>Baller knocks it back out to center ice, but Tatar

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<v Speaker 7>brings it back in battles there with Bursula's slides back

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<v Speaker 7>out to Miller, Miller out to the wing.

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<v Speaker 3>With a shot on the floor between.

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<v Speaker 7>The circles the Rangers as It's Vladimir Tarasenko to get

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<v Speaker 7>the first goal the postseason for the Rangers and they

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<v Speaker 7>take one another.

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<v Speaker 3>Lead on ESPN.

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<v Speaker 4>New York Rangers went on to beat the Devils five

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<v Speaker 4>to one a pair of power play goals for Chris Quider.

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<v Speaker 4>The only New Jersey goal came on a late penalty

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<v Speaker 4>shot by Jack Hughes. Also winning the NHL Tampa Bay

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<v Speaker 4>Winnipeg and the first ever playoff win for the Seattle

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<v Speaker 4>Kraken at the Stadium show hey O Tony second bat

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<v Speaker 4>of the game, two run homer Angels went on to

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<v Speaker 4>beat the Yankees five to two on the one hundredth

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<v Speaker 4>anniversary of the opening of the Yankee Stadium, and the

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<v Speaker 4>other four teams in the Al East all one, including

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<v Speaker 4>Tampa Bay, who is now fifteen and three in LA

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<v Speaker 4>JD Martinez two home runs Clayton Kershaw's two hundredth career victory.

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<v Speaker 4>The Dodgers shut out the Mets five to nothing.

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<v Speaker 10>John Stashieway gloom Brooks Sports.

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<v Speaker 5>Livem coast to coast from New York to San Francisco,

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<v Speaker 5>Boston to Washington, d C. Nationwide on SIRIUSXAM, the Bloomberg

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<v Speaker 5>Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

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<v Speaker 5>Good morning, I'm Nathan Hager. Let's get back to some

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<v Speaker 5>of our top stories this morning. A massive settlement in

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<v Speaker 5>dominion voting systems, defamation lawsuit against Fox News, even more

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<v Speaker 5>job cuts coming at meta platforms in Disney, and a

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<v Speaker 5>sluggish earnings report from Netflix. Lots to talk about this

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<v Speaker 5>morning with Bloomberg's Alex Webb, who joins me now. Alex,

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<v Speaker 5>great to speak with you.

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<v Speaker 2>As always, we should talk about the terms of this

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<v Speaker 2>settlement for dominion systems that really did come at the

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<v Speaker 2>last minute. Seven hundred and eighty seven and a half

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<v Speaker 2>million dollars. That's less than half the one point six

0:11:45.800 --> 0:11:48.120
<v Speaker 2>billion Dominion was looking for, but a lot more than

0:11:48.120 --> 0:11:49.320
<v Speaker 2>many analysts expected.

0:11:50.480 --> 0:11:55.520
<v Speaker 14>Yeah, it's certainly a big chunk of change. It's the

0:11:55.600 --> 0:11:57.160
<v Speaker 14>thing that actually a lot of people are keen to

0:11:57.160 --> 0:12:01.160
<v Speaker 14>know is whether it also included an apollo from Fox.

0:12:01.920 --> 0:12:04.960
<v Speaker 14>It is something that they can afford. They have, you know,

0:12:05.040 --> 0:12:08.680
<v Speaker 14>cash of four billion dollars in net debt, but of course,

0:12:09.080 --> 0:12:11.400
<v Speaker 14>uh cash at hand a four billion dollars, So it's

0:12:11.400 --> 0:12:15.479
<v Speaker 14>not going to make a significant dent in their finances,

0:12:15.520 --> 0:12:18.959
<v Speaker 14>although clearly not something that they're going to be delighted

0:12:19.080 --> 0:12:22.400
<v Speaker 14>to pay. The real thing they're avoiding here is Rubert

0:12:22.480 --> 0:12:25.520
<v Speaker 14>Murdock getting up on the stand, other Fox executives and

0:12:26.720 --> 0:12:29.640
<v Speaker 14>personalities getting up the stand and bringing more embarrassment to

0:12:29.720 --> 0:12:33.520
<v Speaker 14>the network in a way that you know, could potentially

0:12:33.679 --> 0:12:36.560
<v Speaker 14>not only damage their reputation for non core viewers, but

0:12:36.640 --> 0:12:37.840
<v Speaker 14>also for their core audience.

0:12:38.280 --> 0:12:40.640
<v Speaker 2>So New Fox News has the cash flowd to handle this,

0:12:40.800 --> 0:12:43.920
<v Speaker 2>but of course the network has seen something of a

0:12:43.920 --> 0:12:49.760
<v Speaker 2>subscriber exit I'm sorry it an advertiser exodus in recent years.

0:12:49.800 --> 0:12:51.880
<v Speaker 2>I mean, what could this settlement mean as far as

0:12:52.240 --> 0:12:57.000
<v Speaker 2>how Fox's business goes going forward here given the advertiser environment,

0:12:57.960 --> 0:12:58.360
<v Speaker 2>I mean.

0:12:58.200 --> 0:13:00.800
<v Speaker 14>If the forecast for the company are not terribly bullish,

0:13:00.920 --> 0:13:04.480
<v Speaker 14>the expectation over the next two to three years is

0:13:04.520 --> 0:13:10.200
<v Speaker 14>that both ebit done net income gradually decline. It is

0:13:10.480 --> 0:13:13.640
<v Speaker 14>a difficult space when you've got you do have some

0:13:13.679 --> 0:13:18.079
<v Speaker 14>competition althocially, not as significant as Fox had anticipated from

0:13:18.400 --> 0:13:23.720
<v Speaker 14>the Newsmaxes of the world. It's I think the thing

0:13:23.720 --> 0:13:26.400
<v Speaker 14>they might be looking for, frankly, is a good Donald

0:13:26.400 --> 0:13:31.080
<v Speaker 14>Trump run because the more engaging Donald Trump is, the

0:13:31.080 --> 0:13:34.360
<v Speaker 14>more engaged their audience becomes. That is something that benefits them.

0:13:34.440 --> 0:13:38.120
<v Speaker 14>So the election cycle will be hugely important for their earnings.

0:13:39.200 --> 0:13:43.560
<v Speaker 14>The appetite of you know, advertisers, they sometimes shy away

0:13:43.600 --> 0:13:46.000
<v Speaker 14>in the short term when there is damage. We've seen

0:13:46.160 --> 0:13:49.160
<v Speaker 14>time and again that they do return in the medium

0:13:49.200 --> 0:13:51.160
<v Speaker 14>to long term if they think the audience is there.

0:13:51.640 --> 0:13:54.960
<v Speaker 2>Speaking of the advertiser environment, I was thinking about subscribers

0:13:55.000 --> 0:13:57.040
<v Speaker 2>because of the focus this morning as well on the

0:13:57.160 --> 0:14:00.839
<v Speaker 2>job cuts coming at meta platforms and as well, we

0:14:00.920 --> 0:14:04.240
<v Speaker 2>knew that both companies were bringing the acts down and

0:14:04.280 --> 0:14:06.400
<v Speaker 2>I guess we're getting a better idea of just exactly

0:14:06.400 --> 0:14:07.720
<v Speaker 2>where the actes are going to fall.

0:14:09.400 --> 0:14:12.560
<v Speaker 14>Yeah, it was particularly interesting at Meta that they are

0:14:12.640 --> 0:14:16.400
<v Speaker 14>going to be cutting jobs in the reality Labs division,

0:14:16.440 --> 0:14:20.840
<v Speaker 14>which you know, not a year ago, was considered by management,

0:14:20.960 --> 0:14:23.200
<v Speaker 14>at least in terms of their public statements, the big

0:14:23.360 --> 0:14:26.240
<v Speaker 14>future of the company. In the past couple of quarters,

0:14:26.240 --> 0:14:30.480
<v Speaker 14>they've sort of tamped back on big public statements about

0:14:30.480 --> 0:14:34.080
<v Speaker 14>the prospects for the Metaverse, and frankly they've been rewarded

0:14:34.080 --> 0:14:37.000
<v Speaker 14>for it, along with the significant job cuts they've been doing.

0:14:37.000 --> 0:14:39.000
<v Speaker 14>In the order of seventeen thousand job cuts of what

0:14:39.040 --> 0:14:43.400
<v Speaker 14>have been announced. This was been, you know, characterized by

0:14:43.400 --> 0:14:45.960
<v Speaker 14>the company as a year of efficiency, and the stock

0:14:46.040 --> 0:14:48.600
<v Speaker 14>is up seventy five eighty percent, you know, partly as

0:14:48.600 --> 0:14:52.400
<v Speaker 14>a consequence of that Disney. You know, they have also

0:14:52.560 --> 0:14:55.880
<v Speaker 14>been cutting some jobs. It's interesting they are cutting jobs

0:14:55.920 --> 0:14:59.440
<v Speaker 14>in the entertainment division, which you know, is considered by

0:14:59.440 --> 0:15:01.760
<v Speaker 14>many to be the court business, even if they sometimes

0:15:01.760 --> 0:15:04.280
<v Speaker 14>make more money from theme parks and elsewhere. But it

0:15:04.360 --> 0:15:08.720
<v Speaker 14>shows that actually just inventing, sort of investing limitlessly in

0:15:08.800 --> 0:15:12.000
<v Speaker 14>content is no longer considered the priority.

0:15:12.400 --> 0:15:12.560
<v Speaker 12>You know.

0:15:12.760 --> 0:15:16.200
<v Speaker 2>It's I got to talk about Netflix earnings weaker than

0:15:16.240 --> 0:15:20.560
<v Speaker 2>expected subscriber growth. Now they're saying passwords sharing could be

0:15:20.600 --> 0:15:23.480
<v Speaker 2>what gets them going in the second half. How much

0:15:23.560 --> 0:15:27.720
<v Speaker 2>can Netflix ring out of subscribers who don't pay at

0:15:27.720 --> 0:15:28.440
<v Speaker 2>this point.

0:15:28.960 --> 0:15:30.320
<v Speaker 14>I mean, you know, that is the sort of fifty

0:15:30.320 --> 0:15:34.080
<v Speaker 14>billion dollar question. There are one hundred million people they

0:15:34.440 --> 0:15:38.600
<v Speaker 14>estimate share passwords. The key question now is whether they

0:15:38.680 --> 0:15:42.040
<v Speaker 14>can convert five percent or fifty percent of those into

0:15:42.080 --> 0:15:45.720
<v Speaker 14>paying subscribers. The quarterly subscriber growth is one and three

0:15:45.800 --> 0:15:49.280
<v Speaker 14>quarter million. That was less than two point four million

0:15:49.280 --> 0:15:51.480
<v Speaker 14>people that expected. So even if you get five to

0:15:51.520 --> 0:15:54.120
<v Speaker 14>ten percent of those people to convert, that's a meaningful

0:15:54.120 --> 0:15:56.960
<v Speaker 14>difference when it comes to those overall numbers, and has

0:15:57.000 --> 0:16:00.120
<v Speaker 14>been enough to hamp back some of the fears around NETFLI,

0:16:00.240 --> 0:16:02.800
<v Speaker 14>the stoken nishitifel twelve percent in off grouse trading is

0:16:02.800 --> 0:16:04.560
<v Speaker 14>recovered quite a lot in a one stage.

0:16:04.360 --> 0:16:07.760
<v Speaker 2>Of trading up Today. This is Bloomberg day Break Today,

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