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Speaker 1: From the Bloomberg Interactive Brokers Studios. This is Bloomberg day

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Speaker 1: Break for Wednesday, April twenty six.

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Speaker 2: Coming up today, Microsoft shares sore as Cloud growth Fuels earnings.

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Speaker 1: Alphabet also on the rise as Google Weather's the economic downturn.

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Speaker 2: First Republic malls a huge asset sale and an attempt

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Speaker 2: to shore up its balance sheet.

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Speaker 1: And House Speaker Kevin McCarthy moves ahead with a vote

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Speaker 1: on the death ceiling.

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Speaker 3: Witnesses are expected to take the stand today and Donald

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Speaker 3: Trump's civil trial. Plus the isis leader behind a twenty

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Speaker 3: twenty one attack that killed thirteen US service members as dead.

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Speaker 3: I'm Michael Barr.

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Speaker 4: More ahead, I'm John Stasharon Sports.

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Speaker 5: The Mets and Yankees lost the Islanders one to keep

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Speaker 5: their scenes it alive.

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Speaker 4: The next played Game five in Cleveland tonight.

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Speaker 6: That's all straight ahead on Bloomberg day Break, The business

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Speaker 6: news you need to starn your day in just one

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Speaker 6: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

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Speaker 6: Business Appen everywhere you get your podcasts.

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Speaker 4: Good morning, I'm Nathan Hager.

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Speaker 1: And I'm Karen Moscow. Here are the stories we're following today.

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Speaker 2: The rise in Nasdaq futures follows solid earnings from two

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Speaker 2: tech giants. We got to start with Microsoft this morning.

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Speaker 2: Those shares are up seven and a half percent. Profit

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Speaker 2: and sales beat estimates, and Microsoft gave an upbeat forecast

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Speaker 2: for its artificial intelligence business. We get more from Bloomberg

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Speaker 2: tech reporter Aggie Cantrill.

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Speaker 7: It's also about the investment that they made in open AI.

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Speaker 7: A big part of that investment when they announced it

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Speaker 7: was about integrating artificial intelligence into the suite of services

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Speaker 7: provided by zero and so that's also a core part

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Speaker 7: of Microsoft's plan going forward is essentially saying how their

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Speaker 7: latest investments in AI are still going to be relevant

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Speaker 7: to the suite of services they already provide.

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Speaker 2: Bloomberg's Aggie Cantrell says revenue climbed more than thirty percent

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Speaker 2: in Microsoft's closely watched as Zeri cloud computing business.

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Speaker 1: Hey Nathan, Shares of Alphabet are up three quarters of

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Speaker 1: a percent this morning. That company search business whether the

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Speaker 1: economic downturn. With ad sales beating estimates. Alphabet's cloud unit

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Speaker 1: also turned a profit for the first time, but that

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Speaker 1: hasn't stopped the company from cutting jobs. In here CFO

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Speaker 1: Ruth Poorad.

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Speaker 8: In terms of the outlook for headcount for the year,

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Speaker 8: as we shared last quarter, we are meaningfully slowing the

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Speaker 8: pace of hiring in twenty twenty three, while still investing

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Speaker 8: in priority areas, particularly for top engineering and technical talent.

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Speaker 1: CFO Ruth poor At and Alphabet leadership has been cutting

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Speaker 1: costs to preserve profit margins. The company cut about twelve

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Speaker 1: thousand positions in January.

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Speaker 2: And of course, the tech earnings continue today, Karen. With

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Speaker 2: Facebook parent Meta Platforms reporting this afternoon, let's get a

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Speaker 2: preview now from Bloomberg's Tom Busby Well.

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Speaker 9: These results are from the first quarter of what Meta

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Speaker 9: CEO Mark Zuckerberg called the Year of Efficiency at the

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Speaker 9: company and for investors, one focus of today's report will

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Speaker 9: be the impact of what's forecast to be a pretty

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Speaker 9: sizeable drop in digital ad revenue. Also, of note the

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Speaker 9: effect of several rounds of layoffs at the company. Thousands

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Speaker 9: of workers have been eliminated, and a new focus away

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Speaker 9: from the metaverse and instead artificial intelligence and chatbots. Consensus

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Speaker 9: calls for earnings per share of two dollars and one

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Speaker 9: cent revenue of twenty seven point six to seven billion dollars,

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Speaker 9: with three billion active monthly users. Tom Busby Bloomberg Daybreak.

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Speaker 9: All right, Tom, thanks well.

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Speaker 1: Regional banks are in the spotlight again today we're seeing

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Speaker 1: diverging paths for two specific companies, and we get the

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Speaker 1: details from Bloomberg's John Tucker.

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Speaker 9: John, good morning.

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Speaker 10: It's a tale of two banks, Karen. After weeks of calm,

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Speaker 10: First Republic's warning on deposit outflows, it reignited concerns about

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Speaker 10: the health of the regional banking system. Its shares plunged

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Speaker 10: forty nine percent, and then the worries eased somewhat after

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Speaker 10: pack West Bank course that its deposits rebounded a First

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Speaker 10: Republic is exploring an asset sale of up to one

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Speaker 10: hundred billion dollars of mortgages and securities as part of

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Speaker 10: a rescue plan. On the other hand, Pack West Bank

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Speaker 10: course saying things stabilized. Pack West has been taking steps

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Speaker 10: to short up liquidity after selling off some assets. It

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Speaker 10: says liquidity is reaching more normal levels, where the company's

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Speaker 10: shares jumping sixteen percent pre market and a measure of

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Speaker 10: calm may have returned to the sector. Live in New York.

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Speaker 10: I'm John Tucker, Bloomberg Day Break.

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Speaker 4: Well John.

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Speaker 2: Since the collapse of Silicon Valley Bank. Hedge funds have

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Speaker 2: seen massive outflows, but the world's biggest hedge fund is

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Speaker 2: defying that. Trend Man Group says its clients brought in

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Speaker 2: a net one point one billion dollars in the first quarter.

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Speaker 2: The hedge fund industry as a whole saw outflows a

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Speaker 2: four point eight billion during the same period.

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Speaker 1: Well, Nathan, the San Francisco Fed is taking heat for

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Speaker 1: the collapse of Silicon Valley Bank. It's now the target

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Speaker 1: of criticism from at least two Republican legislators, and Bloomberg's

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Speaker 1: Ed Baxter has the story.

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Speaker 11: Senator Ted Cruz and Representative Jim Jordan have sent a

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Speaker 11: letter to San Francisco FED President Mary Daily. Cruz on

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Speaker 11: Bloomberg's balance of power says, the Fed has to be

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Speaker 11: awake to what's happening around it.

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Speaker 12: Why the San Francisco Fed was essentially a sleep with

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Speaker 12: the wheel. The San Francisco Fed is who had supervisory

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Speaker 12: responsibility for Silicon Valley Bank. The duration risks on these

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Speaker 12: bonds was evident on the face of it.

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Speaker 11: Crew says the attitude that the Fed cannot be held

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Speaker 11: responsible or answer to regulation is not right. In San Francisco.

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Speaker 11: I'm at Baxter Bloomberg.

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Speaker 1: Daybreak, all right, and thanks. So we spoke with ten

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Speaker 1: crews about a number of subjects, including the debt ceiling

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Speaker 1: battle on Capitol Hill. Stay tuned for more of that

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Speaker 1: conversation coming up shortly on Bloomberg day Break.

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Speaker 2: And when it comes to that debt ceiling debate, careen,

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Speaker 2: it looks like House Speaker Kevin McCarthy is moving ahead

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Speaker 2: with a vote on his plan. Amy Morris has more

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Speaker 2: from our Bloomberg ninety nine one newsroom in Washington.

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Speaker 13: The bill links the debt ceiling increase to spending cuts,

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Speaker 13: but there are deep divisions within the Republican Party that

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Speaker 13: threatened to sink it. A handful of Republicans are withholding

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Speaker 13: their support over rolling back at the all tax credits

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Speaker 13: and work requirements, while moderate and ultra conservatives have said

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Speaker 13: they just won't support it. The plan has been to

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Speaker 13: hold the vote today, but even that's risk. If the

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Speaker 13: bill does fail, the House Speaker loses strength in his

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Speaker 13: negotiating position and could possibly weaken his own speakership. The

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Speaker 13: ultimate outcome of the vote might not be known until

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Speaker 13: the role call happens in Washington. I maybe more as

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Speaker 13: Bloomberg Daybreak.

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Speaker 1: All right, Amy, thank you all. US companies in China

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Speaker 1: are growing more pessimistic about the relationship between the two countries.

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Speaker 1: According to a survey from the American Chamber of Commerce

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Speaker 1: in China, eighty seven percent of those responding are negative

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Speaker 1: about US China ties. That's fourteen percentage points higher than

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Speaker 1: the previous survey.

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Speaker 2: It's forty seven degrees in New York. It'll be partly

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Speaker 2: sunny today. Chance for a shower this afternoon, going out

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Speaker 2: to the low sixties. Few more showers possible tonight. Otherwise

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Speaker 2: mostly cloudy. Heading down to a round fifty. Time now

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Speaker 2: to take a look at some of the other stories

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Speaker 2: making news in New York and around the world.

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Speaker 4: Good morning, Michael Barr.

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Speaker 3: Good morning, Nathan. Witnesses are expected to begin taking the

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Speaker 3: stand today and former President Donald Trump's civil trial in

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Speaker 3: New York. Writer E. Gene Carroll as accused Trump of

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Speaker 3: sexual assault and defamation. Carol says Trump raped her in

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Speaker 3: a department store dressing room in nineteen ninety six. Her

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Speaker 3: lawyer told the jury fear and shame kept hers silent

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Speaker 3: for decades. Trump's lawyers say that Carol is only out

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Speaker 3: for money and for politics, and denies attacking her. The

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Speaker 3: White House announced that the isis K leader behind the

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Speaker 3: twenty twenty one attack at the Kabbol Airport, resulting in

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Speaker 3: the deaths of thirteen American service personnel in about one

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Speaker 3: hundred and seventy Afghans has been killed by the Taliban.

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Speaker 3: One of the dead was Marine staff Sergeant Taylor Hoover.

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Speaker 3: His father just got a call from the Marine Corps.

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Speaker 3: He spoke to CBS.

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Speaker 11: Does it matter to you whether or not it was

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Speaker 11: the Taliban that apparently killed him?

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Speaker 8: More in the United States, I don't care who it

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Speaker 8: was that killed him. It's one lass terrorist that we

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Speaker 8: have to worry about.

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Speaker 4: Does it feel like justice to you?

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Speaker 8: To me, it won't be justice ever.

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Speaker 3: US military personnel but not involved in the operation, but

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Speaker 3: had learned he was killed several weeks ago during a

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Speaker 3: series of battles early this month in southern Afghanistan between

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Speaker 3: the Teleiban and the Islamic State Group's affiliate. Fresh off

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Speaker 3: of re election announcement, President Biden spoke to a crowd

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Speaker 3: of workers representing the building trade union. The President highlighting

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Speaker 3: the passage of the infrastructure Bill, the inflation reduction Act

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Speaker 3: and the American Rescue Plan to the National Association of

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Speaker 3: Building Trades Union conference in Washington.

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Speaker 11: I make no apologies for me label the most pro

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Speaker 11: union president American District.

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Speaker 4: I'm proud of him. I'm proud of it.

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Speaker 3: I really a Republicans have said that President Biden's COVID

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Speaker 3: nineteen spending, among other things, has been reckless, and have

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Speaker 3: unveiled their own spending plan that would slash many programs

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Speaker 3: tied to the American Rescue Plan. Singapore executed a man

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Speaker 3: today on charges of conspiring to traffic more than two

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Speaker 3: pounds of cannabis. Global News twenty four hours a day,

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Speaker 3: powered by more than twenty seven hundred journalist in over

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Speaker 3: one hundred and twenty countries. Michael Barr, this is Bloomberg, Nathan.

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Speaker 4: Thank you, Michael. Time now for our Bloomberg Sports update.

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Speaker 4: For that we bring in Johnston showing. Thanks Nathan.

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Speaker 5: The Yankees have hit their first slump three straight losses,

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Speaker 5: four in the last five and then those four losses,

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Speaker 5: they have scored a total of only five runs, not

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Speaker 5: a single extra Mase hit, and a six to two

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Speaker 5: loss at Minnesota. The Twins got two run overs in

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Speaker 5: the sixth inning from Byron Buxton and Trevor Laarn first

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Speaker 5: loss of the year for Nester Coretest. Tampa Bay did

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Speaker 5: finally lose a home game for the first time this season.

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Speaker 5: They had been fourteen to zero, but in the Al

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Speaker 5: East the Yanks in fourth place day game today in

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Speaker 5: Minnesota at Cityfield, the Mets had only five hits against

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Speaker 5: New Rochelle native Josiah Gray.

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Speaker 4: Washington won five nothing. The Mets have.

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Speaker 5: Also lost their last three, that is, since winning eight

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Speaker 5: out of nine. The Islanders season not over yet. First

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Speaker 5: period goal for Pierre Angwell, Rock Nelson Matthew Barzel both

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Speaker 5: scored in the second. The Isles won three to two,

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Speaker 5: cutting Carolina's lead to three to two. NBA playoffs Dead

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Speaker 5: and Phoenix both with series ending Game five wins at home,

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Speaker 5: but Boston blew a thirteen point lead lost to Atlanta

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Speaker 5: Trey Young a game winning thirty footer with two seconds left.

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Speaker 5: The Celtics now lead three to Nixon. Cavs Game five

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Speaker 5: tonight in Cleveland with a Knicks up three one. Aaron

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Speaker 5: Rodgers with a lengthy social media post thankful for his

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Speaker 5: eighteen years in Green Bay. Rogers now a Jet, their

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Speaker 5: GM Joe Douglas made the.

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Speaker 14: Trade, Aaron's one of the one of the best quarterbacks

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Speaker 14: to ever played this game, and to have an opportunity

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Speaker 14: to add a player of that caliber, You're always gonna

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Speaker 14: You're always gonna look into it and how it how

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Speaker 14: it fits within within our culture, within our team.

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Speaker 5: Douglass called the Jets acquisition of Rogers historic. John stashiewa

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Speaker 5: Bloomberg's Boy.

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Speaker 6: Live from coast to coast, from New York to San Francisco,

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Speaker 6: Boston to Washington, d C. Nationwide on Sirius XM The

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Speaker 6: Bloomberg Business.

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Speaker 4: I've been Bloomberg dot Com. This is Bloomberg Daybreak. Good morning.

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Speaker 4: I'm Nathan Hager.

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Speaker 2: Ted Cruz says he wants answers from the San Francisco

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Speaker 2: Federal Reserve Bank on the failure of Silicon Valley Bank.

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Speaker 2: In a conversation with Bloomberg's Joe Matthew and Amory Hordern,

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Speaker 2: the Republican from Texas discussed the letter that he and

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Speaker 2: Ohio Congressman Jim Jordan sent to San Francisco Fed President

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Speaker 2: Mary Daily. They also discussed the fight over the debt

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Speaker 2: ceiling and who he might back for president in twenty

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Speaker 2: twenty four. Let's bring you part of that conversation right now.

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Speaker 15: You write in this letter that President Daily essentially failed

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Speaker 15: to answer your requests for information about svb's collapse. Did

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Speaker 15: she reply at all, Senator what you say?

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Speaker 12: We've gotten a letter that just a dismissive response, but

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Speaker 12: not a substantive response. Which is why I've teamed up

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Speaker 12: with Jim Jordan, the chairman of the House Judiciary Committee,

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Speaker 12: and I'm the ranking member of the Senate Commerce Committee,

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Speaker 12: to engage in oversight and to examine why the San

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Speaker 12: Francisco Fed was essentially asleep at the wheel. The San

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Speaker 12: Francisco Fed is who had supervisory responsibility for Silicon Valley Bank.

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Speaker 12: The duration risks on these bonds was evident on the

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Speaker 12: face of it, and yet the approach of the San

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Speaker 12: Francisco Fed seems to be that oversight cannot be applied

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Speaker 12: to it, that it doesn't have to respond to the

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Speaker 12: American people, it doesn't have to respond to Congress, and

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Speaker 12: the consequence was billions of dollars.

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Speaker 16: That went up in smoke because.

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Speaker 12: The regulators failed to catch this and do their job.

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Speaker 17: The Federal Reserve is now going to release an internal review.

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Speaker 16: They have about this collapse.

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Speaker 17: It's supposed to be do before May first, and it's

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Speaker 17: coming out this Friday. Were you alerted to this or

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Speaker 17: is the San Francisco FED potentially just saying to you

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Speaker 17: wait for the Fed's review that's going to be out

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Speaker 17: this week.

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Speaker 12: The problem is that the San Francisco FED and all

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Speaker 12: of the branch offices of the FED have a long

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Speaker 12: history of essentially ignoring congressional inquiry. And in fact, I've

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Speaker 12: joined together on bipartisan legislation along with Elizabeth Warren. Elizabeth

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Speaker 12: and I don't agree on a lot of things, but

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Speaker 12: we've joined together on this to subject these banks to

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Speaker 12: FOIL requests so that they can be subject to oversight

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Speaker 12: from Congress and subject to oversight from the public, because

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Speaker 12: right now their attitude is that they can't or shouldn't

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Speaker 12: be scrutinized, and I think that's the wrong attitude.

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Speaker 4: Who gets punished for this?

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Speaker 12: You saw the Biden administration step in and bail out

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Speaker 12: the customers at Silicon Valley Bank, and they did that.

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Speaker 12: I think many of those customers were politically well connected,

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Speaker 12: political supporters of the president, and I got to say

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Speaker 12: that leaves a lot of main street sitting behind wondering, well,

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Speaker 12: what happens if I don't have a lobbyist with stroke

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Speaker 12: in this White House? And we need to have clear

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Speaker 12: standards that apply, that are transparent, And I'm really concerned

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Speaker 12: about the fallout. In particular, I'm concerned that we're seeing

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Speaker 12: a flight of capital away from community banks, away from

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Speaker 12: mid size banks, to the giant banks, and I think

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Speaker 12: that's really harmful.

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Speaker 16: Senator.

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Speaker 17: The other big story, of course, our viewers are focused on,

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Speaker 17: is the debt ceiling. And in your book, and you're

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Speaker 17: opening chapter, you talk about this clean debt ceiling that

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Speaker 17: was going to be orchestrated to their Obama administration, but

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Speaker 17: no Republicans one of their fingerprints on it. Do you

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Speaker 17: think if McCarthy and Biden can't reach a deal, set

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Speaker 17: Republican leaders need to make sure that the country lifts

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Speaker 17: the debt ceiling.

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Speaker 12: The Biden White House's position right now I think is

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Speaker 12: wildly unreasonable. Go back to the year two thousand and

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Speaker 12: the year two thousand, you know what our national debt was,

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Speaker 12: It was just five trillion dollars.

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Speaker 16: Then what happened. George W.

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Speaker 12: Bush became president and in eight years, our national debt

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Speaker 12: doubled from five trillion to ten trillion. In two thousand

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Speaker 12: and eight, Barack Obama became president, and in the next

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Speaker 12: eight years, our national debt doubled again, from ten trillion

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Speaker 12: dollars to twenty trillion dollars. So it took forty two

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Speaker 12: two presidents over two hundred years to build up five

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Speaker 12: trillion in debt, and two presidents quadruple the debt in

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Speaker 12: just sixteen years. We're now at about thirty two trillion dollars.

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Speaker 12: What we're doing is irresponsible, and I think it is

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Speaker 12: critically important for leaders in the House and leaders in

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Speaker 12: the Senate to force real spending reforms. Now, let me

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Speaker 12: be clear, under no circumstances should the United States default

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Speaker 12: on our debt. And there's one person on planet Earth

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Speaker 12: who could make that one hundred percent certainty, that's Joe Biden.

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Speaker 12: A responsible president would say we will never default on

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Speaker 12: our debt. But Biden doesn't want to do that because

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Speaker 12: he wants to scare monger and threaten a default rather

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Speaker 12: than negotiate and actually address this out of control spending

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Speaker 12: and debt.

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Speaker 17: Joe Biden is saying, you want to see a budget,

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Speaker 17: and then he's willing to negotiate. The president has announced

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Speaker 17: his reelection, When are you going to announce who you support?

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Speaker 17: And is at the former President Trump?

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Speaker 12: Look, I'm running for reelection for Senate in the state

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Speaker 12: of Texas in twenty twenty four.

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Speaker 16: I'm focused on reelection.

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