Speaker 1: From the Bloomberg interacted Berger's Studios. This is Bloomberg day
Speaker 1: Break for Thursday, April thirteenth. Coming up today, the Fed
Speaker 1: looks ready to high rates again despite signs of a
Speaker 1: looming recession. We get another key reading on inflation. This morning.
Speaker 1: President Biden continues his trip to Ireland. We take you
Speaker 1: to Dublin for the latest and new development. Son who
Speaker 1: may be behind the massive leak of secret US documents
Speaker 1: of Fenderal Appeals Court? Hans preserved access to an abortion
Speaker 1: drug for now? And renst in Manhattan have reached record highs.
Speaker 1: I'm John Tucker. Those stories straight ahead. I'm John stash
Speaker 1: Award Sports. The Yankees rallied to win in Cleveland, the
Speaker 1: Mets meet the Padres, and the Islanders won the Clinton
Speaker 1: plaoff spot. 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 Apple, 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 this morning with a
Speaker 1: bevy of news on the global economy starting here in
Speaker 1: the US. Despite fears of a looming recession, FED officials
Speaker 1: appear on track to extend their run of interest rate
Speaker 1: hikes when they meet next month. Here's San Francisco Fed
Speaker 1: President Mary Daily looking ahead. There are good reasons to
Speaker 1: think the policy may have to tighten more to bring
Speaker 1: inflation down, but there are also good reasons to think
Speaker 1: that the economy may continue to slow even without additional
Speaker 1: policy adjustments. San Francisco Fed President Mary Daily is not
Speaker 1: a voting member this year on the FOMC. Well, Nathan,
Speaker 1: the Fed will have more data to digest later this morning,
Speaker 1: a day after we saw consumer prices show signs of
Speaker 1: moderating in March, the latest reading on producer prices comes
Speaker 1: out today. We get a preview from Bloomberg's Michael McKee.
Speaker 1: The good inflation news is wholesale prices have been coming
Speaker 1: down faster than retail. While the consumer Price index rose
Speaker 1: five percent last month, the producer race indexes forecaster to
Speaker 1: come in almost half that, helping the most dropping commodity prices,
Speaker 1: bringing down food and energy costs. While there isn't a
Speaker 1: direct connection between the CPI and PPI indexes, the producer
Speaker 1: data offer hope for a continued fall at the retail level,
Speaker 1: so good news in the producer numbers may lead to
Speaker 1: another drop in bond yields. Michael McKee, Bloomberg Daybreak, Thanks Mike.
Speaker 1: In Europe, the UK economy stalled unexpectedly in February. Let's
Speaker 1: get the details on that line from Bloomberg's un Parts
Speaker 1: in London. Good morning, Huen, Good morning Nathan and Karen.
Speaker 1: It's been a winter of industrial action in the UK.
Speaker 1: Strikes across public transit, health services and elsewhere were a
Speaker 1: key factor in February's GDP reading, which showed zero growth
Speaker 1: for the month. But there was better use for a
Speaker 1: she Senac's government. With January's prints revised up to north
Speaker 1: point four percent growth. The data reduces the risk of
Speaker 1: recession this year, but still leaves the UK on track
Speaker 1: for an extended period of stagnation. In London, Immune Parts,
Speaker 1: Boomberg Daybreak, Thank you and thanks, and there's more e
Speaker 1: mc data this morning. In Asia, China's exports unexpectedly rose
Speaker 1: last month thanks to improving demand from Europe and most
Speaker 1: of Asia. Bloomberg Daybreak Asia anchor Brian Curtis as Moore
Speaker 1: from Hong Kong. A big surprise here. Exports up fourteen
Speaker 1: point eight percent from a year earlier. We saw a
Speaker 1: pickup in demand in Southeast Asia, South Korea and Europe.
Speaker 1: The estimate was for a drop of more than seven percent. Now,
Speaker 1: the divergence in the projected and the actual was the
Speaker 1: biggest sense twenty eighteen. We've seen exports contract from late
Speaker 1: twenty twenty two as demand in the US, the EU
Speaker 1: and other countries lost momentum. This game in March was
Speaker 1: the first in six months. Bloomberg Economics is not convinced though,
Speaker 1: that it will continue, and imports dropped one point four
Speaker 1: percent in On Kong. Bryan Curtis, Bloomberg Day Break. Thanks Brian.
Speaker 1: Let's turn to politics now. President Biden's in Dublin on
Speaker 1: the second day of his three day visit to Ireland.
Speaker 1: He will meet with the Prime Minister Leo Radker and
Speaker 1: address the Irish Parliament. President Biden was in Northern Ireland yesterday,
Speaker 1: calling on leaders there to put aside post breaks at
Speaker 1: differences that have kept government at a standstill. A government
Speaker 1: that works to find ways through hard problems together, it's
Speaker 1: going to draw even greater opportunity in this region. So
Speaker 1: I hope the Assembly and the Executive will soon be restored.
Speaker 1: That's a judgment for you to make, not me, but
Speaker 1: I hope it happens. The President Biden spoke yesterday in
Speaker 1: Belfast to mark the twenty fifth anniversary of the Good
Speaker 1: Friday Agreement. Donna See and Ruey's a fellow at the
Speaker 1: Center for Strategic and International Studies. The President himself said,
Speaker 1: you know, peace was not inevitable. I would say it
Speaker 1: also was not guaranteed even after the signing of the agreement.
Speaker 1: So it's really important to mark that anniversary so that
Speaker 1: we can all remember there's a lot that needs to
Speaker 1: be done to sustain that piece and move beyond some
Speaker 1: of these models of segregated politics in Northern Ireland. Donna
Speaker 1: See and Ruey with CSIS, was a guest on Bloomberg
Speaker 1: Sound On with Joe Matthew. Catch the show weekdays at
Speaker 1: one pm Eastern on Bloomberg Radio. Well back in Washington, Nathan,
Speaker 1: we have new developments this morning on who may be
Speaker 1: behind the massive leak of secret US documents that had
Speaker 1: been posted online for weeks, and Amy Morris says the
Speaker 1: details from our Bloomberg ninety nine one newsroom in Washington.
Speaker 1: The documents were linked to an online platform called Discord,
Speaker 1: popular with gamers, and on that platform is a smaller
Speaker 1: chat room made up of young men and boys who
Speaker 1: share a love of guns and military gear. The Washington
Speaker 1: Post spoke with members of that chat room, and one,
Speaker 1: a minor, agreed to be interviewed. He spoke on condition
Speaker 1: of anonymity and with his parents' permission, and says the
Speaker 1: leaker goes by OG, and that is not working with
Speaker 1: foreign governments. I want to keep OG's identity secret because
Speaker 1: I still care for him like he's a family member.
Speaker 1: He is not a Russian operative. He's not a Ukrainian operative,
Speaker 1: he says. OG works on a military base. Discord has
Speaker 1: released a statement saying it's cooperating with law enforcement in Washington.
Speaker 1: I'm Amy Morris, Bloomberg Daybreak, Thanks Amy, and in entirely
Speaker 1: different news out of Washington. Looks like one of the
Speaker 1: world's richest people will not be adding a football team
Speaker 1: to his toy chest. Let's get the latest on that
Speaker 1: Live with Bloomberg, Steve Rappaport, Steve, Good Morning, Nathan and Karen.
Speaker 1: Source tells us Jeff Bezos will not assume command of
Speaker 1: the Washington Commanders. The Amazon founder was considered a frontrunner
Speaker 1: to acquire the team from Dan and Tania Snyder. They
Speaker 1: began exploring options following relevations of the team's toxic work environment.
Speaker 1: Last month, a group of investors, including NBA legend Magic Johnson,
Speaker 1: made a bid for the Commanders. The Snyder's asking prices
Speaker 1: said to be nearly six billion dollars, a record amount
Speaker 1: for an NFL franchise. Live in New York, I'm Steve Rappaport,
Speaker 1: Bloomberg Daybreak. It is sixty seven degrees in New York.
Speaker 1: It's going to be sunny and warm today with highs
Speaker 1: in the low eighties. We'll get down to the low
Speaker 1: sixties tonight under a clear to partly cloudy sky. Time
Speaker 1: now to take a look at some of the other
Speaker 1: stories making news in New York and around the world
Speaker 1: with bloombergs John Tucker, Good morning, John, Yeah. Nathan of
Speaker 1: FENDERL Peel's Corps. Hans preserved access to an apportioned abortion
Speaker 1: drug for now, but under tighter rules that would allow
Speaker 1: the drug not only to be dispensed up to seven weeks,
Speaker 1: not ten, and not by mail by two to one vote.
Speaker 1: A panel of three judges narrowed for now a decision
Speaker 1: by a record judge in Texas that had completely blocked
Speaker 1: the FDA's approval of the drug. Following a lawsuit by
Speaker 1: methapristone's opponents, former President Donald Trump has filed a five
Speaker 1: hundred million dollars lawsuit against his former attorney, Michael Cohen
Speaker 1: for allegedly violating their attorney client bond and spreading with
Speaker 1: The lawsuit claims is embarrassing at detrimental lies. Public statements
Speaker 1: by Cohen helped form the basis for last week's criminal
Speaker 1: indictment of Trump by the Manhattan DA. Rans in Manhattan
Speaker 1: have reached record highs and the busy season isn't even
Speaker 1: here yet. Let's find out more in this report from
Speaker 1: Bloomberg's Jeff Bellinger. The median monthly raid rose to a
Speaker 1: record high four thousand, one hundred seventy five dollars in March.
Speaker 1: That's according to a report by appraiser Miller Samuel and
Speaker 1: the brokerage Douglas Element Real Estate. And that's up twenty
Speaker 1: five percent from the previous peak reached in July, and
Speaker 1: almost thirteen percent more than a year ago, apartment hunters
Speaker 1: have not been able to catch a break, even as
Speaker 1: more units became available and the borough's vacancy rate continued
Speaker 1: to tick up, and the busiest and most expensive period
Speaker 1: of the year for rentals traditionally July and August, is
Speaker 1: still ahead, signaling more record highs to come. Jeff Bellinger
Speaker 1: bloom Bird Day Break. Diane Feinstein has been a voice
Speaker 1: for California the un Senate for thirty years. Now some
Speaker 1: of her colleagues one are gone. The eighty nine year
Speaker 1: old senator has been absent from Washington for about two months,
Speaker 1: taking out a key Democratic vote Wednesday. Representative Roquehanna Fellow
Speaker 1: California twitted what many of his Democratic colleagues have long whispered,
Speaker 1: it's obvious she can no longer fulfill her duties in
Speaker 1: the race for president. In twenty twenty four, a South
Speaker 1: Carolina's Senator Tim Scott launching a presidential exploratory committee, and
Speaker 1: without referencing the former president's name, offering himself as an
Speaker 1: alternative to Donald Trump. I was raised by a single
Speaker 1: mother in poverty. The spoons in our apartment were plastic,
Speaker 1: not silver. Senate, it's only blank Republican insisting mccrants quote
Speaker 1: weaponized race to dividus, pitching his life story as proof
Speaker 1: of a different path forward. Global News twenty four hours
Speaker 1: a day, Power and buy more than twenty seven hundred
Speaker 1: journalist and an analyst in more than one hundred twenty countries.
Speaker 1: I'm John Tucker, DC is Bloomberg Nathan. Thank you, John.
Speaker 1: Time now for the Bloomberg Sports Update. Good morning, John Stashower.
Speaker 1: Good morning nighth and first time since two thousand and seven,
Speaker 1: all three New York area hockey teams are head of
Speaker 1: the Stanley Cup Playoffs. The last of the three to
Speaker 1: earn entry, The Islanders did so with a four two
Speaker 1: win over Montreal at the Ubs Arena. Rock Nelson scored twice,
Speaker 1: finishes the regular season with thirty six goals. Islanders in
Speaker 1: the first round will play either Boston Carolina or the Devils.
Speaker 1: The Devils could also play the Rangers, or they could
Speaker 1: end up playing Florida. It'll all get sorted out after tonight.
Speaker 1: Also after tonight, we'll know the teams that'll be seated
Speaker 1: eighth in the NBA playoffs. Chicago will play at Miami.
Speaker 1: Oklahoma City goes to Minnesota, Bulls and Thunder both one
Speaker 1: last night on the road next ready for Game one
Speaker 1: Saturday night at Cleveland. The obvious storyline to this series
Speaker 1: the Knicks tried all off season unsuccessfully to acquire Donovan
Speaker 1: Mitchell from Utah. He ended up instead with the Calves.
Speaker 1: The Knicks coach is Tom Tibotock. He's a great player,
Speaker 1: right you're looking at what he's accomplished in the playoffs.
Speaker 1: He's a very accomplished playoff player. So we're gonna have
Speaker 1: to be at our best and throw a lot more
Speaker 1: than just Donovan. And it's not just Donovan, because he's
Speaker 1: obviously a superstar. Garland, he and Garland together, and then
Speaker 1: we add in Mowgli and al and Jib's not sure
Speaker 1: if Julius Randall will return from his ankle and dream
Speaker 1: played for the Nixon Saturday. The Yankees have played four series.
Speaker 1: They've won them all, only the fifth time they've done that.
Speaker 1: Four three win at Cleveland after trailing early on three nothing.
Speaker 1: Another home run for Frankie Cordero his fourth and seven games.
Speaker 1: Mets got home runs from Peter Lonzo and Francisco Lindor
Speaker 1: beat San Diego five to two. Tampa Bay beat the
Speaker 1: Red stops nine to seven, the Razor twelve and oh
Speaker 1: they can tie the MLB record for best start ever
Speaker 1: with a win. Today, John Stashower Bloomberg Sport live from
Speaker 1: coast to coast, from New York to San Francisco, Boston
Speaker 1: to Washington, d C. Nationwide on Sirius Examp, the Bloomberg
Speaker 1: Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 1: Good morning. I'm Nathan Hagar. The policy path for the
Speaker 1: Federal Reserve is in focus this morning after the latest
Speaker 1: reetings on inflation and the minutes from the Central Bank's
Speaker 1: previous meeting. Despite calls for a mild recession later this year,
Speaker 1: the Fed did go ahead with a quarter percentage point
Speaker 1: interest rate hike. So what's in store next month? Let's
Speaker 1: bring in Simon French for some analysis. Chief economist at
Speaker 1: Panmer Gordon Simon, It's good to speak with you. I
Speaker 1: wonder what your read is on the latest Fed minutes.
Speaker 1: Why did the head go ahead with that hike despite
Speaker 1: what they were hearing from the staff that we could
Speaker 1: see a mild recession by the end of this year. Yeah,
Speaker 1: good morning, Nason, and pushed to join you. So my
Speaker 1: reading of it is This is uncomfortable core inflation generating
Speaker 1: in the second half of the next year, of this year,
Speaker 1: stagflationary conditions in the US economy. Now, that is where
Speaker 1: central bankers, particularly on the Federal Reserve Policymaking Committee, are
Speaker 1: going to be very uncomfortable with the backdrop of doing
Speaker 1: not just the tightening that they did in March, but
Speaker 1: the expectation that they will further tighten in May in
Speaker 1: order to squeeze out the last part of what is
Speaker 1: uncomfortable core pricing increases against the backdrop, as you rightly say,
Speaker 1: of an expected to slow down a mild recession in
Speaker 1: the United States. But to some extent, that mild recession
Speaker 1: will be a function of how rapid the recovery from
Speaker 1: the pandemic was and how much consumers have leveraged themselves
Speaker 1: in terms of divesting of their savings and adding new
Speaker 1: credit card and loan debt. Is I call for a
Speaker 1: recession exacerbated by what we've seen in the banking sector,
Speaker 1: the regional bank collapses and the potential for further credit tightening.
Speaker 1: So I think there's two parts of this. Is the
Speaker 1: direct tightening of financial conditions that came from reduced risk
Speaker 1: appetite from lenders having seen what seems like a sort
Speaker 1: of a quite considerable challenge to the regional banking network
Speaker 1: in the United States. But there is also a second
Speaker 1: order effect, which is the propensity of businesses and consumers
Speaker 1: to take on credit against this backdrop, against the backdrop
Speaker 1: where risk appetite, when you'll have concerns over the underlying
Speaker 1: banking system is undoubtedly going to pull back. And I
Speaker 1: think this is what we got from the commentary from
Speaker 1: the economists within the Federal Reserve, is there is expected
Speaker 1: to be that second order effect on sentiment even if
Speaker 1: headline interest rates and lending criteria for US businesses in
Speaker 1: US households doesn't fall out, particularly from the events of
Speaker 1: the banking crisis of recent weeks. Is that a factor
Speaker 1: that could steer the FED, that could lead it to,
Speaker 1: if not pause, pull back on rate hikes. Certainly, And
Speaker 1: we have to say, even in advance of the banking
Speaker 1: sector fallout, there was already voices and we saw them
Speaker 1: again in the minutes yesterday within the Federal Reserve saying, look,
Speaker 1: we have done more than four hundred bases points of
Speaker 1: tightening into this economy, and monetary policy does not happen instantaneously.
Speaker 1: It famously has long and variable lags, and those lags
Speaker 1: are probably eighteen months to two years. And in that environment,
Speaker 1: there will be an element within the Federal Reserve voting
Speaker 1: group who will say, look, we have to see how
Speaker 1: what we have done already impacts the economy over the
Speaker 1: next twelve eighteen months, two years. Is to ascertain whether
Speaker 1: we've done enough tightening or not, because it is impossible
Speaker 1: to say at this point with any certainty as to
Speaker 1: what that impact will be of leaving the lower bound,
Speaker 1: which we've been stuck at for the best part of
Speaker 1: a decade. We get producer prices later on this morning,
Speaker 1: what's your expectation there and how much of a factor
Speaker 1: does that play into what the Fed could do next month. Yes,
Speaker 1: so producer price is normally a bit of a backwater
Speaker 1: of economic data, and I think producer prices will be
Speaker 1: a considerable slowdown. We saw in the services data last
Speaker 1: week that US businesses were seeing input costs now slowing
Speaker 1: and in some cases falling, but their output costs were
Speaker 1: still rising pretty high. And that obviously brings into interview
Speaker 1: of the fear of profit profiteering from the corporate sector.
Speaker 1: A very big theme on Capitol Hill. I think that's
Speaker 1: a really difficult optic for a central bank that is
Speaker 1: trying to stay a political adness. It's very political if
Speaker 1: it feels the corporate sector seeing falling producer prices is
Speaker 1: still passing on pre considerable cost increases the consumer base.
Speaker 1: This is Bloomberg day Break Today, your morning brief on
Speaker 1: the stories making news from Wall Street to Washington and beyond.
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Speaker 1: morning for all the news you need to start your day,
Speaker 1: right here on Bloomberg Daybreak