Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan
Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're
Speaker 1: following today.
Speaker 2: Stocks are closing out the weekend record fashion optimism that
Speaker 2: the FED will be able to engineer a soft landing
Speaker 2: propelled the S and P five hundred to its twentieth
Speaker 2: record this year. The Nasdaq one hundred also hit an
Speaker 2: all time high. Cheryl Smith is portfolio manager at Trillia
Speaker 2: Masset Management.
Speaker 3: Equity market wants to believe, and wants to believe hard,
Speaker 3: and is looking for every possible sign to go higher.
Speaker 3: The fact is that we are twenty four months into
Speaker 3: a FED tightening cycle, and that is about when we
Speaker 3: normally see interest rate hikes begin to really affect the
Speaker 3: economy truly.
Speaker 2: Massive Management's Cheryl Smith notes, in just three months, the
Speaker 2: S and P five hundred is already trading above the
Speaker 2: average year end forecast of strategists tracked by Bloomberg Well Nathan.
Speaker 1: Helping to fuel optimism was another successful trading debut of
Speaker 1: an IPO social media company. Reddit rose forty eight percent yesterday.
Speaker 1: Chief operating officer Jen Wong says the artificial revolution is
Speaker 1: at the center of reddits value proposition.
Speaker 4: Large language models need data to train on, and when
Speaker 4: you look at Reddit's corpus nineteen years of human experience
Speaker 4: organized by topic with well in moderation and relevance, that's
Speaker 4: incredibly important to building both a chat capability and the
Speaker 4: freshness of information. So that's an area where you know,
Speaker 4: we see opportunity.
Speaker 1: And Reddit's gen Wong Kele's Bloomberg. The firm is also
Speaker 1: in the early stages of allowing third parties to license
Speaker 1: access to data on the platform.
Speaker 2: In yesterday's closing price of fifty dollars and forty four cents, Karen,
Speaker 2: Reddit has a market value of eight billion dollars includes
Speaker 2: stock options and restricted share units. The company's fully diluted
Speaker 2: valuation runs closer to nine and a half billion. Bloomberg
Speaker 2: and Elligence analyst man Deep Singh explains what going public
Speaker 2: means for Reddit as.
Speaker 5: A public company. I think they'll be forced to improve
Speaker 5: their act in terms of, you know, showing more profitability.
Speaker 5: I don't think there is scare in terms of cash
Speaker 5: burn or you know, them running out of money. They've
Speaker 5: got a perfectly fine balance sheet, but now it's all
Speaker 5: about showing monetization. And the LM. The generator bi aspect
Speaker 5: is huge.
Speaker 2: Bloomberg Intelligence analyst man Deep Sing argued even before the
Speaker 2: pricing that Reddit could be worth as much as ten
Speaker 2: billion dollars.
Speaker 1: On Nathan, several stocks are on the move this morning.
Speaker 1: Shares of FedEx at more than twelve percent. Cost cutting
Speaker 1: help the courier deliver better than expected earnings. FedEx also
Speaker 1: plans to buy back five billion dollars of its shares.
Speaker 2: On the flip side, Careen shares of Lululemon are down
Speaker 2: nearly thirteen percent. The athletic maker forecast lower than expected
Speaker 2: sales outlook for the first quarter and the full year.
Speaker 2: Lulu says visits to its stores in the US slowed
Speaker 2: at the beginning of the year.
Speaker 1: Also lower this morning. Shares of Nike they are down
Speaker 1: almost seven percent this morning Nathan, the world's largest sports
Speaker 1: where retailer, warning investors that sales will take a hit
Speaker 1: later this year. Nike says it's working to realign merchandise
Speaker 1: to better match what shoppers want.
Speaker 2: To buy, and investors have also taken a big bite
Speaker 2: out of Apple's market value. In fact, that dropped one
Speaker 2: hundred and thirteen billion dollars yesterday. This latest slide comes
Speaker 2: after Attorney General Merrick Garland announced an antitrust lawsuit against
Speaker 2: the company, accusing it of blocking rivals from accessing hardware
Speaker 2: and software features on the iPhone.
Speaker 6: We allege that Apple has employed a strategy that relies
Speaker 6: on exclusionary, anti competitive conduct that hurts both consumers and developers.
Speaker 6: For consumers, that has meant fewer choices, higher prices and fees,
Speaker 6: lower quality smartphones, apps and accessories, and less innovation from
Speaker 6: Apple and its competitors.
Speaker 2: In Merrick Garland's Justice Department lawsuit has been strongly refuted
Speaker 2: by Apple. It says it is wrong on the facts
Speaker 2: and the law on we.
Speaker 1: Turn to the economy Nathan and criticism of the Federal
Speaker 1: Reserve by a former Treasury secretary, Larry Summers is questioning
Speaker 1: why the Fed is continuing to signal that it's prepared
Speaker 1: to lower interest rates despite a strong economy that's giving
Speaker 1: off projections of still too high inflation.
Speaker 7: My sense is still that the Fed is itchy fingers
Speaker 7: to start cutting rates, and I don't fully get it.
Speaker 7: I don't know why we're in such a hurry to
Speaker 7: be talking about moving towards the accelerator.
Speaker 1: And Larry Summers added that the Fed's current neutral policy
Speaker 1: rate is more restrictive than it needs to be. Here
Speaker 1: the full conversation on Bloomberg Wall Street Week today at
Speaker 1: six pm Wall Street Time, on Bloomberg Radio and television on.
Speaker 2: Capitol Hill, Karen. Another partial government shut down deadline is
Speaker 2: just hours away. Funds run out for about seventy percent
Speaker 2: of federal agencies at midnight tonight, but later this morning,
Speaker 2: the House will vote on a one point two trillion
Speaker 2: dollar measure to keep them open through the end of September.
Speaker 2: Speaker Mike Johnson's bringing this bill up under a streamlined
Speaker 2: process that requires two thirds support. Bloomberg's Kate Actly reports
Speaker 2: the clock is ticking.
Speaker 8: There's this sort of the pressure building two week recess
Speaker 8: on the horizon. Everybody wants to get back to their districts. Yes,
Speaker 8: it could fall apart, of course, but we have seen
Speaker 8: them again and again try to wrap things up so
Speaker 8: that they don't in an election year, you know, sort
Speaker 8: of draw attention to the dysfunction of government.
Speaker 2: Bloomberg's Kate Actly reports some Republicans are crying foul over
Speaker 2: the process. Speaker Johnson is bypassing a House rule that
Speaker 2: gives lawmakers seventy two hours to review a bill before
Speaker 2: they vote on it.
Speaker 1: Well, now, Nathan, to the latest on the war in
Speaker 1: the Middle Age. There are signs of progress toward a
Speaker 1: possible Gaza peace agreement. At the same time, there are
Speaker 1: threats of an invasion of Rolfa on Bloomberg's and Baxter
Speaker 1: has the details.
Speaker 9: Delegations from Israel, the US, Cutter, and Egypt will meet
Speaker 9: today to try to draw up a plan so that
Speaker 9: the invasion does not have to happen. But Israel's Minister
Speaker 9: for Strategic Affairs, Ron Dermer, on a US podcast, hamas
Speaker 9: infrastructure remains in Rava.
Speaker 10: Which you saw in October seventh, was a genocidal force
Speaker 10: that wants to wipe out all the Jews. And it's
Speaker 10: the first program that we've had since the birth of
Speaker 10: the State of Israel. We have the ability to defend ourselves.
Speaker 11: He says.
Speaker 9: If there is not a peace deal, the assault will happen.
Speaker 9: Ed Baxter, Bloomberg Radio, All right.
Speaker 1: Ed, thank you, and it's time now for a look
Speaker 1: at some of the other stories making news in New
Speaker 1: York and around the world. And for that we're joined
Speaker 1: by Bloomberg's Michael Varr Michael, good Morning.
Speaker 11: Good Morning, Karon, and battled New Jersey Senator Bob Menendez
Speaker 11: says he won't be seeking re election as a Democrat,
Speaker 11: but is keeping the door open to an independent run
Speaker 11: for his seat. Menendez and his wife Nadine are facing
Speaker 11: federal corruption charges. Prosecutors alleged they took gifts in exchange
Speaker 11: for doing official favors for the governments of Egypt and Cutter.
Speaker 11: In the video he posted on social media, Menendez talented
Speaker 11: the work he's done in the Senate and declared his
Speaker 11: innocence on churges.
Speaker 12: This would allow me the time to not only remind
Speaker 12: New Jerseyans of how I've succeeded in being your champion,
Speaker 12: but how we will secure our financial futures, meet the
Speaker 12: challenges of raising a family, owning a home, provide for
Speaker 12: a college education, and secure a more peaceful world for
Speaker 12: all of us to live in.
Speaker 11: If Menendez does run as an independent, he would face
Speaker 11: one of two Democratic candidates in November, Governor Phil Murphy's
Speaker 11: wife Tammy Murphy, or Representative Andy Kim. Russian missile and
Speaker 11: drone attacks damage electricity and transmission systems in several Ukrainian regions,
Speaker 11: causing power cuts in some areas. Two New York City
Speaker 11: squatters wanted for murder are being sought in Pennsylvania. It
Speaker 11: began last week when fifty two year old Nadia Vittel
Speaker 11: arrived from Spain the check on her deceased mother's luxury
Speaker 11: Manhattan apartment. Police say she encountered two squatters, a man
Speaker 11: and a woman living in the apartment. Police say a
Speaker 11: struggle broke out. The tail was thrown into a sheet
Speaker 11: rock wall and died from blunt forced trauma to her head.
Speaker 11: Her body was stuffed in a Duffel bag and put
Speaker 11: in a closet. The victim's son came to check on her,
Speaker 11: only to discover a foot sticking out of the Duffel bag.
Speaker 11: The building superintendent says the sun then called authorities.
Speaker 13: We directed them to the closet because all the clothes
Speaker 13: had been pulled out, and he said there was a
Speaker 13: bag underneath it, and he said, can you open the
Speaker 13: bag because I believed as a body in there.
Speaker 11: It's believed the suspected squanders took the Dell's car and
Speaker 11: fled to Pennsylvania. Adult film actress Stormy Daniel says she
Speaker 11: is absolutely ready to testify against her former President Trump
Speaker 11: in his New York hush money criminal trial. Daniel says,
Speaker 11: though she's somewhat surprised by the strong threats she's received
Speaker 11: after the case was announced.
Speaker 3: Suddenly the indictment happens and all of this stuff and
Speaker 3: it was just as why I it was like twenty
Speaker 3: eighteen all over again, except now they're more vicious.
Speaker 11: Stormy. Daniel spoke on ABC's The View Global News twenty
Speaker 11: four hours a day and whenever you want it with
Speaker 11: the Bloomberg News. Now, I'm Michael Barr, and this is Bloomberg. Hearin.
Speaker 1: All right, Michael, thank you. Time now for the Bloomberg
Speaker 1: Sports Update, brought to you by Tri State Audian.
Speaker 14: For that, we bring in John Stanshower. John, good morning,
Speaker 14: Good morning Karen. First round is what makes the NCAA
Speaker 14: tournament so special. So we see it every year, smaller
Speaker 14: schools who play in small James, very often not on TV.
Speaker 14: The players don't get nil money, and the upset a heavyweight.
Speaker 14: We saw two years ago with Saint Peter's last year,
Speaker 14: Fairley Dickinson and last night the Cinderella Slipper belonged to
Speaker 14: Oakland University from Rochester, Michigan, a loser of eleven games,
Speaker 14: a fourteen seed who had never before won an NCAA
Speaker 14: first round game, The Golden Grizzlies knocked off Kentucky eighty
Speaker 14: to seventy six. Jack Goldkie scored thirty two, made ten
Speaker 14: threes and has asked how David go live.
Speaker 15: Obviously we come in were the underdog by all measures,
Speaker 15: but you just gotta as a player, you can't think
Speaker 15: that way. You got to go out there and you
Speaker 15: got to think that you have the same talent level
Speaker 15: as them. I know they have draft picks, and I
Speaker 15: know I'm not going to the NBA, but I know
Speaker 15: on any given night, I can compete with those type
Speaker 15: of guys, and our team can compete with those type
Speaker 15: of guys.
Speaker 16: As for Saint Peter's no run this year, they lost
Speaker 16: by thirty four to Tennessee. Wagner lost to North Carolina
Speaker 16: by twenty eight. Dan Monson now joins the unemployment line.
Speaker 16: He got fired by Long Beach State, but his team
Speaker 16: surprisingly won the Big West Turney. They then lost to
Speaker 16: Arizona by twenty The Knicks lost in Denver, won thirteen
Speaker 16: to one hundred too much. Nicola Jochus thirty points triple double.
Speaker 16: Jalen Brunson scored twenty six. He averaged thirty seven a
Speaker 16: game on the road trip that saw the Knicks go
Speaker 16: three and one. They're back home tomorrow afternoon to play
Speaker 16: the Nets, who lost their fifth in a row one
Speaker 16: fifteen to one oh eight in Milwaukee. Rangers won five
Speaker 16: to two in Boston Artemi Panera and two goals in
Speaker 16: the second period. Adam Fox snapped at two all time
Speaker 16: in the third, and the Rangers then with two empty netters,
Speaker 16: the second one by Pinera and to complete the hat trick.
Speaker 16: He's now the fifth leading score in the NHL. Islanders
Speaker 16: lost six to three at Detroit. Devil's beat Winnipeg four
Speaker 16: to one. The NFL says it will not outlaw the
Speaker 16: quarterback sneak Push Push John Stashcheller Bloomberg.
Speaker 17: Sports Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 17: and around the world on Bloomberg dot Com, Bloomberg Television
Speaker 17: and the Bloomberg Business app. This is Bloomberg Daybreak. Good morning.
Speaker 17: I'm Nathan Hager.
Speaker 2: Social media company read It made its much anticipated trading
Speaker 2: debut yesterday, marking the fourth largest initial public offering on
Speaker 2: a US exchange this year. Shares swored forty eight percent
Speaker 2: above their IPO price, closing at fifty dollars forty four cents.
Speaker 2: Investors are betting big on Reddit's vision of profit from
Speaker 2: the growth in artificial intelligence. Reddit's chief operating officer, Jen
Speaker 2: Wong joined Bloomberg's Caroline Hyde and Ed Ludlow to talk
Speaker 2: about how Reddit plans to leverage AI to increase its
Speaker 2: value and how going public is giving the company plenty
Speaker 2: of momentum.
Speaker 4: Well, it's certainly a lot of press on a day
Speaker 4: like today, it is a special day. But becoming a
Speaker 4: public company has just made us a better company. We've
Speaker 4: actually been in this process longer than most almost two
Speaker 4: years actually, and that process has made us more disciplined,
Speaker 4: more operationally rigorous, and actually allowed us to get to
Speaker 4: know investors better and tell our story. And so this
Speaker 4: whole process has made us a better company, and we're
Speaker 4: prepared to be a public company. I think it's actually
Speaker 4: been really good for us, and I think companies that
Speaker 4: you can.
Speaker 18: Go public it's sort of a duty.
Speaker 4: It's part of the you know, process of maturing as
Speaker 4: a company.
Speaker 18: And then the benefit of.
Speaker 4: Having our sharehold our employee employees have liquidity which we
Speaker 4: promise to them, and in addition, have our communities and
Speaker 4: users be able to be shareholders.
Speaker 18: Makes a lot of sense for Reddit.
Speaker 19: The evolution of the story is for you moving away
Speaker 19: from a solely advertising based business model to one way
Speaker 19: you license your user data to the companies that are
Speaker 19: building large language models. I just asked if you could
Speaker 19: explain to our audience how that works in practice, how
Speaker 19: you're going to grow that business.
Speaker 4: Yeah, Well, just ahead of addressing that, I just wanted
Speaker 4: to write context. One of the things that's so special
Speaker 4: about Reddit is that we play in three big addressable markets.
Speaker 4: We have this core advertising business. Adds is a great business,
Speaker 4: it's still early, we have great traction and momentum.
Speaker 18: That's our core business.
Speaker 4: We have an emerging data licensing business that we built
Speaker 4: the foundations for last year because Reddit's corpus of information
Speaker 4: is incredibly important to the training of large language models
Speaker 4: and also for insights for different kinds of businesses. And
Speaker 4: the third is a user economy where our communities go
Speaker 4: beyond conversation and to be able to transact with each other.
Speaker 4: Now you asked about the data licensing business, which we
Speaker 4: built the foundations for last year.
Speaker 18: That has two pieces to it.
Speaker 4: It is a piece that's sort of well established, where
Speaker 4: there's social listening for marketing for companies who want to
Speaker 4: understand what's happening on reddits.
Speaker 18: And for marketing campaigns.
Speaker 4: There's also financial services companies who are interested in that.
Speaker 4: Those are well established markets. And then there's the new
Speaker 4: emerging market of AI where large language models need data
Speaker 4: to train on. And when you look at Reddit's corpus,
Speaker 4: nineteen years of human experience organized by topic with well
Speaker 4: in moderation and relevance, that's incredibly important to building both
Speaker 4: a chat capability and the freshness of information. So that's
Speaker 4: an area where you know, we see opportunity. I think
Speaker 4: what that signals, you know, whether it shows up honestly
Speaker 4: in our revenue or it shows up in the value
Speaker 4: of Reddit is how valuable Reddit is? You know, the
Speaker 4: more that we move toward this AI world, that corpus
Speaker 4: and that knowledge and refreshment of human experience becomes more valuable.
Speaker 20: Those lms, the models are being built a new and
Speaker 20: different ways. This actual technology also develops. I'm interested as
Speaker 20: to really whether this goes on in perpetuity. Do you
Speaker 20: see this sort of licensing being steady and secure for ten.
Speaker 18: Years from now?
Speaker 4: This is so early in this emergence of this technology,
Speaker 4: it's hard to see far out. The way I think
Speaker 4: about it, the way we think about it is this,
Speaker 4: the redd Its corpus of data is incredibly valuable, and
Speaker 4: it gets more valuable because as there's more more content
Speaker 4: that's generated, maybe by AI or computers, original human thoughts
Speaker 4: and ideas increase in value. Right if you think about it,
Speaker 4: a new car comes out, who's going to review it?
Speaker 18: A real life.
Speaker 4: Family of six can actually tell you what it's like
Speaker 4: to drive that car. That's always going to be valuable.
Speaker 4: And so you know, whether that shows up in data
Speaker 4: licensing or in the products that Reddit built, it is valuable.
Speaker 21: This is Bloomberg Daybreak Today, your morning brief on the
Speaker 21: stories making news from Wall Street to Washington and beyond.
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Speaker 1: here on Bloomberg Daybreak