April 10, 2024 • 17 mins
On today's podcast:
1) Barrage of Short Wagers Leaves Bonds Primed for Post-CPI Squeeze
2) Biden calls Israel's handling of the war in Gaza a mistake.
3) Boeing Crisis of Confidence Deepens With 787 Now Under Scrutiny
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2 (00:11):
Good morning.
Speaker 1 (00:11):
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today.
Speaker 2 (00:16):
Karen, we begin with the report Wall Street's been waiting
for all week. This morning, we get the latest read
on inflation with the March report on consumer prices. Economists
are forecasting a rise of three tenths of one percent.
Let's get a preview from Bloomberg's Michael McKee.
Speaker 3 (00:32):
For investors and central bankers, it's the same story. Will
inflation keep falling enough to keep the Fed on track
to lower interest rates this year? Yes, economists say, at
least on a month to month basis, food prices, car prices,
even home prices have come down a little bit. But
energy costs rose during March, particularly for gasoline, and that
(00:53):
means headline CPI is expected to rise year over year.
While the Fed follows the PCE Inflation Index. Most consumers
watch CPI, so a mixed report won't be very good news,
even if incremental progress is made. Michael McKee, Bloomberg Radio.
Speaker 1 (01:10):
All right, Mike, thanks wella headed the report. We are
getting more Fed speak Atlanta Fed President Raphael Bostik reiterated
his expectation for one interest rate cut this year, but
added he is open to changing his view to later
or additional rate reduction should the economic picture change. Meanwhile,
Bloomberg opinion columnist Muhammadalarian expects the Central Bank's overall trajectory
(01:32):
to remain unchanged.
Speaker 4 (01:33):
I think Chef Poald has made it very clear that
he's willing to look through these bumps. They will need
overwhelming evidence that it is more than a bump in
order for them to ch interviews. Inflation will be sticky.
Inflation will be absolutely sticky. We're going to get stuck
at a round two and a half to three percent,
and I do think that that actually warrants over the
(01:55):
long term. The Fed rethinking is inflation targeting, and.
Speaker 1 (01:58):
Muhammad Larian says expecs two rate cuts this year.
Speaker 2 (02:02):
Well, forget rate cuts, Karen. Corporate earnings may fuel the
next leg of this record breaking stock market rally. Let's
get the details on that from Bloomberggs John Tucker.
Speaker 5 (02:10):
John Nathan Earnings season kicks off Friday, and ahead of that,
Wall Street strategists have boosted their year end forecasts for
the S and F five hundred. Deutsche Bank's strategists say
earnings are expected to post a healthy ten percent gain
in the first quarter in the headline numbers from a
year ago. According to City Group, earnings upgrades of outnumbered
downgrades of the first quarter. The rising profit forecasts have
(02:33):
eased concerns that the rally is a bubble. Additionally, forecasts
for tech earnings they remain strong, with analysts expecting the
sector to report that profits stored twenty percent of the
first quarter, and at the same time they outlook for
the more economically sensitive sectors. That's brightening, suggesting a broader,
healthier rally. I'm John Tucker, Bloomberg Radio.
Speaker 1 (02:53):
All right, John, thanks well. One company not participating in
this rally has been Boeing. This stock is down more
than three percent so far this year. The FAA is
investigating whistleblower complaints that Boeing took shortcuts to ease production
bottlenecks on the seven eighty seven Dreamliner. The company says
that claims are inaccurate and do not represent the work
it has done to ensure the safety of the plane.
(03:15):
Bloomberg's brook Sutherlands says the complaints add to the many
challenges facing the embattled plane maker.
Speaker 6 (03:21):
The FAA has capped Bowing's production rate at about thirty
eight seven thirty seven jets per month. Now they are
nowhere near that pace right now. They're taking a step
back and really trying to drill into safety and their
engineering processes. Now that is a good thing in the
long run, but certainly not going to show up and
their delivery numbers right here in the short term.
Speaker 1 (03:40):
Bloomberg's brook Sutherlands says the claims intensify the scrutiny of
Boeing's manufacturing practices that have been building since one of
their planes experienced a mid air accident at the start
of the year.
Speaker 2 (03:50):
In other news, this morning, Karen Arizona will join fourteen
other states that have banned abortion at all stages of pregnancy.
Bloomberg's at Baxter the details.
Speaker 7 (04:01):
Arizona Supreme Court has ruled in favor of enforcing a
Civil War era abortion ban. It says doctors can be
prosecuted for performing an abortion except to save a mother's life.
Both Arizona's Attorney General and the governors say they will
not enforce the law. Governor Katie Hobbs.
Speaker 8 (04:19):
Here, we continue to live under an unacceptable ban, a
law that still strips Arizonas of their personal autonomy and
has no exceptions for women who are the victims of rape, insists,
or any regard for pregnancy complications.
Speaker 7 (04:33):
Politically, this will test Donald Trump's gamble to leave decisions
to the states. Arizona is a swing state. Aed Baxter Bloomberg.
Speaker 1 (04:40):
Radio, all right, ed, thanks well. Turning to the war
in Gaza, President Biden has more tough words for Israeli
Prime Minister Benjamin Netanyahu after the attack that killed seven
AID workers.
Speaker 9 (04:51):
I think when he's doing his mistake, I don't agree
with his book. I think it's outrageous that those four
three vehicles Biden drones and taken out on a highway
where it wasn't like it was along the shore, it
wasn't like there was a convoy moving he, etc.
Speaker 1 (05:10):
The President spoke in an interview that aired last night
on Univision. The conversation was taped last week, two days
after the strike that killed the world of Central kitchen workers.
President Biden also discressed immigration. He was asked whether he
has the authority to shut down the US Mexico border
on his own well.
Speaker 9 (05:26):
It suggested that we're examining whether or not I have
that power. I would have that power under the legislation
when the border has over five hundred thousand people fit
five thousand people a day trying to cross the border
because you can't manage to slow it up.
Speaker 1 (05:42):
And the legislation that President Biden is talking about collapsed
in the Senate after former President Donald Trump pressured Republicans
to kill it. The President says he's not giving up
on that bill.
Speaker 2 (05:52):
I mean, well, Karen. President Biden and the Prime Minister
of Japan are teaming up on an artificial intelligence program.
We get the deals that deetis tails on that from
Bloomberg Steve Potisk in Washington.
Speaker 10 (06:03):
The two nations are looking to improve collaboration around the
quickly emerging technology. President Biden and Japan's Fumio Kashita have
enlisted Amazon and Nvidia to fund a new joint AI
research program. A senior US official says the fifty million
dollar project will be a joint effort between the University
of Washington and Seattle and to Scuba University outside Tokyo.
(06:26):
The push for greater research into artificial intelligence comes as
the Biden administration is weighing a series of new regulations
designed to minimize the risks of AI technology in Washington.
Steve Potis Bloomberg.
Speaker 1 (06:39):
Radio, all right, Steve thanks. In company news, Morsign's Apple
is pushing to diversify beyond Shina. The tech giant assembled
fourteen billion dollars of iPhones in India last fiscal year,
doubling production. Sources say the tech giant now makes as
much as fourteen percent for about one in seven of
its market devices from India.
Speaker 2 (06:58):
Sticking with tech Karen revenue as starch, you get the
owner of TikTok Bite Dance's profits sword roughly sixty percent
in twenty twenty three, outpacing the growth of online peers
ten cent holdings in Alli Boba Group. Source to say
earnings before interest, tax, appreciation and amortization jumped to more
than forty billion dollars from about twenty five billion in
twenty twenty two. The world's most valuable startup also grew
(07:19):
its sales to nearly one hundred and twenty billion dollars
from eighty billion.
Speaker 1 (07:23):
And we have one other note out of Asia this morning.
Nathan Fitch has cut its outlook for China's long term
foreign debt from stable to negative. The Writings Agency says
rising economic uncertainties have eroded fiscal buffers, although Fitch sees
government debt increasing in coming years at a firm China's
A plus rating. And as time now for a look
(07:45):
at some of the other stories making news in New
York and around the world, and for that we're joined
by Bloomberg's Michael Barr Michael, good Morning.
Speaker 11 (07:51):
Good Morning Cairon the first parents convicted and a US
mass school shooting have been sentenced to at least ten
years in prison at Michigan at Oakland County said that
Jennifer and James Crumbley missed opportunities that could have prevented
their son Ethan, from possessing a gun and killing four
students at Oxford High School in twenty twenty one. Before sentencing,
(08:13):
James Crumbley told the court that he couldn't have foreseen
what his son was capable of that day.
Speaker 12 (08:19):
I cannot express how much I wish that I had
known what was going on with him.
Speaker 3 (08:30):
Or what was going to happen.
Speaker 11 (08:32):
The Crumbleys were convicted of involuntary manslaughter. New York Mayor
Eric Adams says he supports legislation to help protect homeowners
from squatters. It comes after an ABC seven report about
a Flushing homeowner who got arrested for changing the locks
on their own home because of a squatter. During a
news conference, Adam says, a woman's home is their castle
(08:53):
and it's imperative that we continue to protect that. There
was a reason that squad of laws was put in place,
and you know, I think people are starting to exploit
with some of those reasons. Are City Council members say
they plan to file legislation that will make it easier
for police to remove squatters. Today was supposed to be
the day the articles of impeachment against Homeland Security Secretary
(09:16):
Alejandro Majorcis we're going to be transmitted from the House.
That process was delayed by House Speaker Mike Johnson until
next week. Senate Republicans want to make sure they're in
full force when the proceedings start. Senate Majority Leader Chuck
Schumer says there are no charges in the House complaint
that rise to the level of impeaching. Mayorcis, We're going
(09:37):
to try and resolve this issue as quickly as possible.
Speaker 13 (09:41):
Impeachment should never be used to settle policy disagreements.
Speaker 11 (09:46):
US Ambassador to Japan Rama Manuel says President Joe Biden's
administration is looking to reverse China's attempts to isolate countries
in Asia, including the Philippines, with help from Japan and
other allies in the region.
Speaker 7 (10:00):
Our strategy is to flip that script and make the
isolated party China.
Speaker 11 (10:04):
Emmanuel's comments to Bloomberg come ahead of the summit between
Biden and Japanese Prime Minister fumi Yo Kashita. Globalding was
twenty four hours a day and whenever you wanted with
the Bloomberg News. Now, I'm Michael Barr. This is Bloomberg. Karen.
Speaker 1 (10:17):
All right, Michael, thank you. Time now for the Bloomberg
Scores update with John stash Hour.
Speaker 13 (10:26):
John, thanks Karen. The Yankees are ten and two. It's
their best starts. In two thousand and three they won
the pen at that season. They've only won it one
since then. At the Stadium. They beat the Marlins three
to two. The big story of the pitching of Carlos
Redon last season. He was hurt and then he struggled.
Speaker 10 (10:40):
Last night.
Speaker 13 (10:41):
Radan took a shutout to the seventh inning. Yanks go
for the series sweep tonight and Atlanta. The Mets, who
came from four onnes down on Monday, trailed six to
Uphing in the eighth inning when Pete Alonzo had a
three run homer. They added two more in the ninth,
with the Braves held on six to five. Red Sox
lost their home opener, out hit by the Orioles thirteen
to two. Baltimore won seven to one. Nationals beat the
Giants five to three. The Knicks lost the other night
(11:03):
in Chicago and then bust to Milwaukee, beat the Bucks,
and then returned to Chicago and this time beat the
Bulls one to seventeen. Another big game for Jalen Bruns,
and he scored forty five. The Knicks sid third in
the East. They're only a game behind second place Milwaukee.
The Bucks ended a four game losing streak. They beat
the league leading Celtics. The game with only two free throws,
shattering the previous NBA record refused in a game. The
(11:25):
record had been eleven. The Islanders have picked a good
time for their hottest stretch. They made it five wins
in a row, beat the Rangers at Ubs Arena forty two.
The Islanders right now looking like a playoff team. Devils
and Bruins both lost to Capitals one. John Califari's first
comments since news that he's leaving Kentucky for Arkansas, he
said after fifteen years Kentucky and needed a new voice.
The Masters Tea's off tomorrow, forty eight year old Tiger
(11:48):
Woods asked how he feels physically.
Speaker 14 (11:50):
I heard every day.
Speaker 12 (11:51):
Yes, I ache, No, I ache every day.
Speaker 3 (11:57):
And I prefer warm and humid and hot.
Speaker 4 (12:02):
And I know we're wearing some thunderstorms.
Speaker 3 (12:04):
At least it'll be hot. We'll be like last year, Tiger.
Speaker 13 (12:06):
We'll try to make the cut for the twenty fourth
consecutive time. He's got an afternoon tea time tomorrow plane
with Jason Day and Max Homer.
Speaker 10 (12:13):
Josh Dashawer, Bloomberg Sports.
Speaker 1 (12:14):
Karen Nan, all right, thank you, John. It is currently well.
The S and P futures are higher, up a tenth
of up percent or six points down. Futures up a
tenth of up percent or fifty two points, NASDAK futures
up two tenths of up percent, or thirty two points.
In the ten year treasury yield four point three five percent.
Speaker 11 (12:33):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app.
Speaker 10 (12:42):
This is Bloomberg Daybreak. Good morning. I'm Nathan Hager.
Speaker 2 (12:46):
We are just hours away from the latest street on
inflation in the US, the Consumer Price Index for March,
and we get more now from Bloomberg's Kredi Gupta so critty.
Since the start of the year, the road to disinflation's
been choppy. Are we thinking that that's what we're going
to see today?
Speaker 14 (13:06):
This is the make or break moment of whether or
not this is kind of a one off or a
two off in terms of hot CPI reports, to whether
or not this was just kind of a momentary uptick. Nathan,
I don't need to remind you of all people the
transitory conversation, and it kind of has felt like the
Federal Reserve and members of the FMC have kind of
brushed off this uptick in the data as seasonal or
(13:28):
as in kind of a one off for for lack
of a better term, whereas the markets have said, well, actually,
maybe this is indicative of some sort of persistent piece
of inflation. That story of the last mile of inflation
may be the most challenging. You've heard that narrative from
around the world, and I think the best way to
look at it, Nathan, is what you're seeing in the
bond market right now. Take a look at yields. Four
thirty nine is where we're at. We weren't expecting yields
(13:51):
to stay this high. We had, in the words of
Bob michael Over at JP Morgan Asset Management six months ago,
he said, there would be insatiable demand for bonds, this
kind of bull market for bonds that we haven't really
seen in a while, given the inflationary standpoint that we've had,
and we've actually haven't seen that fully manifest yet. Now
more concerns about whether or not we hit say five
percent on yields, for example, before we hit even three
(14:14):
and a half, and that is really, at its core
a concern that again, maybe it's not a story of
services inflation anymore. Maybe we start to see more upticks
or some sort of resurgence in goods driven inflation. Think commodities,
oil prices, Does food get a little bit more expensive,
Does housing, for example, eat up a bigger chunk of
the inflationary story. This is potentially Chair Powell's worst nightmare.
Speaker 2 (14:37):
And when you think about the pressures that we're seeing
in commodities, in food and energy, it makes you think
about what kind of bleed through that has into that
core inflation that the Federal Reserve does have some control
over in terms of monetary policy, whether that could make
the job for the Fed to get these price pressures
(14:57):
under control even more difficult.
Speaker 1 (14:59):
It could.
Speaker 14 (15:00):
And look, I think this is where of the nitty
gritty and the real nerdiness of the CPI report comes out.
I think Anna Wongar, chief economist over at Bloomer Economics,
does a really great job of explaining it in terms
of saying you have to pay attention now perhaps less
to the labor market, which by the ways, is something
that Raphael Bostic over at the Atlantic Fed said as well,
and pay more attention to the housing story. Pay attention
(15:20):
to things like airfares, for example, because we're talking about
the most direct read through from the Federal Reserve, Nathan,
the most direct raid through to the consumer that I
can think of is kind of interest rates going higher,
that affecting mortgage rates, that affecting whether or not people
want to actually invest that kind of money at these
high rates in an actual house or continue the rental story.
(15:41):
That is your most direct piece of the inflationary kind
of impulse, especially at a time when wages are actually
higher at the moment than inflation is. For a very
long time they weren't be, and that time where it
felt like inflation was outpacing the salary increases that Americans got.
And I think this applies to every inflationary story around
the world, but specifically Americans. It is still embedded in
(16:03):
the psyche that maybe things are still really expensive and
that we're not making as much in line with inflation.
When the data shows the opposite, the psychoanalysis of that
may be very different.
Speaker 2 (16:15):
And that feeds into that argument that Mohammadel area in
Bloomberg Opinion has been arguing for quite some time that
the FEDS two percent inflation target might not be realistic
anymore and they should be thinking maybe more about three
percent going forward.
Speaker 10 (16:28):
So we'll get much more.
Speaker 2 (16:30):
On this in the hours to come when that March
consumer price index comes out. As we say, eight thirty
am Wall Street Time, Critty Group of Bloomberg News, thank you.
As always, this is Bloomberg Daybreak Today, your morning brief
on the stories making news from Wall Street to Washington
and beyond.
Speaker 1 (16:48):
Look for us on your podcast feed at six am
Eastern each morning, on Apple, Spotify, and anywhere else you
get your podcasts.
Speaker 2 (16:56):
You can also listen live each morning starting at five
am Wall Street Time, on Bloomberg eleven three to zero
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Speaker 1 (17:09):
Our flagship New York station is also available on your
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Speaker 2 (17:18):
Listen coast to coast on the Bloomberg Business app, SERIUSXM,
the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager.
Speaker 1 (17:26):
And I'm Karen Moscow. Join us again tomorrow morning for
all the news you need to start your day right
here on Bloomberg Daybreak
Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2 (00:11):
Good morning.
Speaker 1 (00:11):
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today.
Speaker 2 (00:16):
Karen, we begin with the report Wall Street's been waiting
for all week. This morning, we get the latest read
on inflation with the March report on consumer prices. Economists
are forecasting a rise of three tenths of one percent.
Let's get a preview from Bloomberg's Michael McKee.
Speaker 3 (00:32):
For investors and central bankers, it's the same story. Will
inflation keep falling enough to keep the Fed on track
to lower interest rates this year? Yes, economists say, at
least on a month to month basis, food prices, car prices,
even home prices have come down a little bit. But
energy costs rose during March, particularly for gasoline, and that
(00:53):
means headline CPI is expected to rise year over year.
While the Fed follows the PCE Inflation Index. Most consumers
watch CPI, so a mixed report won't be very good news,
even if incremental progress is made. Michael McKee, Bloomberg Radio.
Speaker 1 (01:10):
All right, Mike, thanks wella headed the report. We are
getting more Fed speak Atlanta Fed President Raphael Bostik reiterated
his expectation for one interest rate cut this year, but
added he is open to changing his view to later
or additional rate reduction should the economic picture change. Meanwhile,
Bloomberg opinion columnist Muhammadalarian expects the Central Bank's overall trajectory
(01:32):
to remain unchanged.
Speaker 4 (01:33):
I think Chef Poald has made it very clear that
he's willing to look through these bumps. They will need
overwhelming evidence that it is more than a bump in
order for them to ch interviews. Inflation will be sticky.
Inflation will be absolutely sticky. We're going to get stuck
at a round two and a half to three percent,
and I do think that that actually warrants over the
(01:55):
long term. The Fed rethinking is inflation targeting, and.
Speaker 1 (01:58):
Muhammad Larian says expecs two rate cuts this year.
Speaker 2 (02:02):
Well, forget rate cuts, Karen. Corporate earnings may fuel the
next leg of this record breaking stock market rally. Let's
get the details on that from Bloomberggs John Tucker.
Speaker 5 (02:10):
John Nathan Earnings season kicks off Friday, and ahead of that,
Wall Street strategists have boosted their year end forecasts for
the S and F five hundred. Deutsche Bank's strategists say
earnings are expected to post a healthy ten percent gain
in the first quarter in the headline numbers from a
year ago. According to City Group, earnings upgrades of outnumbered
downgrades of the first quarter. The rising profit forecasts have
(02:33):
eased concerns that the rally is a bubble. Additionally, forecasts
for tech earnings they remain strong, with analysts expecting the
sector to report that profits stored twenty percent of the
first quarter, and at the same time they outlook for
the more economically sensitive sectors. That's brightening, suggesting a broader,
healthier rally. I'm John Tucker, Bloomberg Radio.
Speaker 1 (02:53):
All right, John, thanks well. One company not participating in
this rally has been Boeing. This stock is down more
than three percent so far this year. The FAA is
investigating whistleblower complaints that Boeing took shortcuts to ease production
bottlenecks on the seven eighty seven Dreamliner. The company says
that claims are inaccurate and do not represent the work
it has done to ensure the safety of the plane.
(03:15):
Bloomberg's brook Sutherlands says the complaints add to the many
challenges facing the embattled plane maker.
Speaker 6 (03:21):
The FAA has capped Bowing's production rate at about thirty
eight seven thirty seven jets per month. Now they are
nowhere near that pace right now. They're taking a step
back and really trying to drill into safety and their
engineering processes. Now that is a good thing in the
long run, but certainly not going to show up and
their delivery numbers right here in the short term.
Speaker 1 (03:40):
Bloomberg's brook Sutherlands says the claims intensify the scrutiny of
Boeing's manufacturing practices that have been building since one of
their planes experienced a mid air accident at the start
of the year.
Speaker 2 (03:50):
In other news, this morning, Karen Arizona will join fourteen
other states that have banned abortion at all stages of pregnancy.
Bloomberg's at Baxter the details.
Speaker 7 (04:01):
Arizona Supreme Court has ruled in favor of enforcing a
Civil War era abortion ban. It says doctors can be
prosecuted for performing an abortion except to save a mother's life.
Both Arizona's Attorney General and the governors say they will
not enforce the law. Governor Katie Hobbs.
Speaker 8 (04:19):
Here, we continue to live under an unacceptable ban, a
law that still strips Arizonas of their personal autonomy and
has no exceptions for women who are the victims of rape, insists,
or any regard for pregnancy complications.
Speaker 7 (04:33):
Politically, this will test Donald Trump's gamble to leave decisions
to the states. Arizona is a swing state. Aed Baxter Bloomberg.
Speaker 1 (04:40):
Radio, all right, ed, thanks well. Turning to the war
in Gaza, President Biden has more tough words for Israeli
Prime Minister Benjamin Netanyahu after the attack that killed seven
AID workers.
Speaker 9 (04:51):
I think when he's doing his mistake, I don't agree
with his book. I think it's outrageous that those four
three vehicles Biden drones and taken out on a highway
where it wasn't like it was along the shore, it
wasn't like there was a convoy moving he, etc.
Speaker 1 (05:10):
The President spoke in an interview that aired last night
on Univision. The conversation was taped last week, two days
after the strike that killed the world of Central kitchen workers.
President Biden also discressed immigration. He was asked whether he
has the authority to shut down the US Mexico border
on his own well.
Speaker 9 (05:26):
It suggested that we're examining whether or not I have
that power. I would have that power under the legislation
when the border has over five hundred thousand people fit
five thousand people a day trying to cross the border
because you can't manage to slow it up.
Speaker 1 (05:42):
And the legislation that President Biden is talking about collapsed
in the Senate after former President Donald Trump pressured Republicans
to kill it. The President says he's not giving up
on that bill.
Speaker 2 (05:52):
I mean, well, Karen. President Biden and the Prime Minister
of Japan are teaming up on an artificial intelligence program.
We get the deals that deetis tails on that from
Bloomberg Steve Potisk in Washington.
Speaker 10 (06:03):
The two nations are looking to improve collaboration around the
quickly emerging technology. President Biden and Japan's Fumio Kashita have
enlisted Amazon and Nvidia to fund a new joint AI
research program. A senior US official says the fifty million
dollar project will be a joint effort between the University
of Washington and Seattle and to Scuba University outside Tokyo.
(06:26):
The push for greater research into artificial intelligence comes as
the Biden administration is weighing a series of new regulations
designed to minimize the risks of AI technology in Washington.
Steve Potis Bloomberg.
Speaker 1 (06:39):
Radio, all right, Steve thanks. In company news, Morsign's Apple
is pushing to diversify beyond Shina. The tech giant assembled
fourteen billion dollars of iPhones in India last fiscal year,
doubling production. Sources say the tech giant now makes as
much as fourteen percent for about one in seven of
its market devices from India.
Speaker 2 (06:58):
Sticking with tech Karen revenue as starch, you get the
owner of TikTok Bite Dance's profits sword roughly sixty percent
in twenty twenty three, outpacing the growth of online peers
ten cent holdings in Alli Boba Group. Source to say
earnings before interest, tax, appreciation and amortization jumped to more
than forty billion dollars from about twenty five billion in
twenty twenty two. The world's most valuable startup also grew
(07:19):
its sales to nearly one hundred and twenty billion dollars
from eighty billion.
Speaker 1 (07:23):
And we have one other note out of Asia this morning.
Nathan Fitch has cut its outlook for China's long term
foreign debt from stable to negative. The Writings Agency says
rising economic uncertainties have eroded fiscal buffers, although Fitch sees
government debt increasing in coming years at a firm China's
A plus rating. And as time now for a look
(07:45):
at some of the other stories making news in New
York and around the world, and for that we're joined
by Bloomberg's Michael Barr Michael, good Morning.
Speaker 11 (07:51):
Good Morning Cairon the first parents convicted and a US
mass school shooting have been sentenced to at least ten
years in prison at Michigan at Oakland County said that
Jennifer and James Crumbley missed opportunities that could have prevented
their son Ethan, from possessing a gun and killing four
students at Oxford High School in twenty twenty one. Before sentencing,
(08:13):
James Crumbley told the court that he couldn't have foreseen
what his son was capable of that day.
Speaker 12 (08:19):
I cannot express how much I wish that I had
known what was going on with him.
Speaker 3 (08:30):
Or what was going to happen.
Speaker 11 (08:32):
The Crumbleys were convicted of involuntary manslaughter. New York Mayor
Eric Adams says he supports legislation to help protect homeowners
from squatters. It comes after an ABC seven report about
a Flushing homeowner who got arrested for changing the locks
on their own home because of a squatter. During a
news conference, Adam says, a woman's home is their castle
(08:53):
and it's imperative that we continue to protect that. There
was a reason that squad of laws was put in place,
and you know, I think people are starting to exploit
with some of those reasons. Are City Council members say
they plan to file legislation that will make it easier
for police to remove squatters. Today was supposed to be
the day the articles of impeachment against Homeland Security Secretary
(09:16):
Alejandro Majorcis we're going to be transmitted from the House.
That process was delayed by House Speaker Mike Johnson until
next week. Senate Republicans want to make sure they're in
full force when the proceedings start. Senate Majority Leader Chuck
Schumer says there are no charges in the House complaint
that rise to the level of impeaching. Mayorcis, We're going
(09:37):
to try and resolve this issue as quickly as possible.
Speaker 13 (09:41):
Impeachment should never be used to settle policy disagreements.
Speaker 11 (09:46):
US Ambassador to Japan Rama Manuel says President Joe Biden's
administration is looking to reverse China's attempts to isolate countries
in Asia, including the Philippines, with help from Japan and
other allies in the region.
Speaker 7 (10:00):
Our strategy is to flip that script and make the
isolated party China.
Speaker 11 (10:04):
Emmanuel's comments to Bloomberg come ahead of the summit between
Biden and Japanese Prime Minister fumi Yo Kashita. Globalding was
twenty four hours a day and whenever you wanted with
the Bloomberg News. Now, I'm Michael Barr. This is Bloomberg. Karen.
Speaker 1 (10:17):
All right, Michael, thank you. Time now for the Bloomberg
Scores update with John stash Hour.
Speaker 13 (10:26):
John, thanks Karen. The Yankees are ten and two. It's
their best starts. In two thousand and three they won
the pen at that season. They've only won it one
since then. At the Stadium. They beat the Marlins three
to two. The big story of the pitching of Carlos
Redon last season. He was hurt and then he struggled.
Speaker 10 (10:40):
Last night.
Speaker 13 (10:41):
Radan took a shutout to the seventh inning. Yanks go
for the series sweep tonight and Atlanta. The Mets, who
came from four onnes down on Monday, trailed six to
Uphing in the eighth inning when Pete Alonzo had a
three run homer. They added two more in the ninth,
with the Braves held on six to five. Red Sox
lost their home opener, out hit by the Orioles thirteen
to two. Baltimore won seven to one. Nationals beat the
Giants five to three. The Knicks lost the other night
(11:03):
in Chicago and then bust to Milwaukee, beat the Bucks,
and then returned to Chicago and this time beat the
Bulls one to seventeen. Another big game for Jalen Bruns,
and he scored forty five. The Knicks sid third in
the East. They're only a game behind second place Milwaukee.
The Bucks ended a four game losing streak. They beat
the league leading Celtics. The game with only two free throws,
shattering the previous NBA record refused in a game. The
(11:25):
record had been eleven. The Islanders have picked a good
time for their hottest stretch. They made it five wins
in a row, beat the Rangers at Ubs Arena forty two.
The Islanders right now looking like a playoff team. Devils
and Bruins both lost to Capitals one. John Califari's first
comments since news that he's leaving Kentucky for Arkansas, he
said after fifteen years Kentucky and needed a new voice.
The Masters Tea's off tomorrow, forty eight year old Tiger
(11:48):
Woods asked how he feels physically.
Speaker 14 (11:50):
I heard every day.
Speaker 12 (11:51):
Yes, I ache, No, I ache every day.
Speaker 3 (11:57):
And I prefer warm and humid and hot.
Speaker 4 (12:02):
And I know we're wearing some thunderstorms.
Speaker 3 (12:04):
At least it'll be hot. We'll be like last year, Tiger.
Speaker 13 (12:06):
We'll try to make the cut for the twenty fourth
consecutive time. He's got an afternoon tea time tomorrow plane
with Jason Day and Max Homer.
Speaker 10 (12:13):
Josh Dashawer, Bloomberg Sports.
Speaker 1 (12:14):
Karen Nan, all right, thank you, John. It is currently well.
The S and P futures are higher, up a tenth
of up percent or six points down. Futures up a
tenth of up percent or fifty two points, NASDAK futures
up two tenths of up percent, or thirty two points.
In the ten year treasury yield four point three five percent.
Speaker 11 (12:33):
Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
and around the world on Bloomberg dot Com and the
Bloomberg Business app.
Speaker 10 (12:42):
This is Bloomberg Daybreak. Good morning. I'm Nathan Hager.
Speaker 2 (12:46):
We are just hours away from the latest street on
inflation in the US, the Consumer Price Index for March,
and we get more now from Bloomberg's Kredi Gupta so critty.
Since the start of the year, the road to disinflation's
been choppy. Are we thinking that that's what we're going
to see today?
Speaker 14 (13:06):
This is the make or break moment of whether or
not this is kind of a one off or a
two off in terms of hot CPI reports, to whether
or not this was just kind of a momentary uptick. Nathan,
I don't need to remind you of all people the
transitory conversation, and it kind of has felt like the
Federal Reserve and members of the FMC have kind of
brushed off this uptick in the data as seasonal or
(13:28):
as in kind of a one off for for lack
of a better term, whereas the markets have said, well, actually,
maybe this is indicative of some sort of persistent piece
of inflation. That story of the last mile of inflation
may be the most challenging. You've heard that narrative from
around the world, and I think the best way to
look at it, Nathan, is what you're seeing in the
bond market right now. Take a look at yields. Four
thirty nine is where we're at. We weren't expecting yields
(13:51):
to stay this high. We had, in the words of
Bob michael Over at JP Morgan Asset Management six months ago,
he said, there would be insatiable demand for bonds, this
kind of bull market for bonds that we haven't really
seen in a while, given the inflationary standpoint that we've had,
and we've actually haven't seen that fully manifest yet. Now
more concerns about whether or not we hit say five
percent on yields, for example, before we hit even three
(14:14):
and a half, and that is really, at its core
a concern that again, maybe it's not a story of
services inflation anymore. Maybe we start to see more upticks
or some sort of resurgence in goods driven inflation. Think commodities,
oil prices, Does food get a little bit more expensive,
Does housing, for example, eat up a bigger chunk of
the inflationary story. This is potentially Chair Powell's worst nightmare.
Speaker 2 (14:37):
And when you think about the pressures that we're seeing
in commodities, in food and energy, it makes you think
about what kind of bleed through that has into that
core inflation that the Federal Reserve does have some control
over in terms of monetary policy, whether that could make
the job for the Fed to get these price pressures
(14:57):
under control even more difficult.
Speaker 1 (14:59):
It could.
Speaker 14 (15:00):
And look, I think this is where of the nitty
gritty and the real nerdiness of the CPI report comes out.
I think Anna Wongar, chief economist over at Bloomer Economics,
does a really great job of explaining it in terms
of saying you have to pay attention now perhaps less
to the labor market, which by the ways, is something
that Raphael Bostic over at the Atlantic Fed said as well,
and pay more attention to the housing story. Pay attention
(15:20):
to things like airfares, for example, because we're talking about
the most direct read through from the Federal Reserve, Nathan,
the most direct raid through to the consumer that I
can think of is kind of interest rates going higher,
that affecting mortgage rates, that affecting whether or not people
want to actually invest that kind of money at these
high rates in an actual house or continue the rental story.
(15:41):
That is your most direct piece of the inflationary kind
of impulse, especially at a time when wages are actually
higher at the moment than inflation is. For a very
long time they weren't be, and that time where it
felt like inflation was outpacing the salary increases that Americans got.
And I think this applies to every inflationary story around
the world, but specifically Americans. It is still embedded in
(16:03):
the psyche that maybe things are still really expensive and
that we're not making as much in line with inflation.
When the data shows the opposite, the psychoanalysis of that
may be very different.
Speaker 2 (16:15):
And that feeds into that argument that Mohammadel area in
Bloomberg Opinion has been arguing for quite some time that
the FEDS two percent inflation target might not be realistic
anymore and they should be thinking maybe more about three
percent going forward.
Speaker 10 (16:28):
So we'll get much more.
Speaker 2 (16:30):
On this in the hours to come when that March
consumer price index comes out. As we say, eight thirty
am Wall Street Time, Critty Group of Bloomberg News, thank you.
As always, this is Bloomberg Daybreak Today, your morning brief
on the stories making news from Wall Street to Washington
and beyond.
Speaker 1 (16:48):
Look for us on your podcast feed at six am
Eastern each morning, on Apple, Spotify, and anywhere else you
get your podcasts.
Speaker 2 (16:56):
You can also listen live each morning starting at five
am Wall Street Time, on Bloomberg eleven three to zero
in New York, Bloomberg ninety nine one in Washington, Bloomberg
one oh sixty one in Boston, and Bloomberg ninety sixty
in San Francisco.
Speaker 1 (17:09):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.
Speaker 2 (17:18):
Listen coast to coast on the Bloomberg Business app, SERIUSXM,
the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager.
Speaker 1 (17:26):
And I'm Karen Moscow. Join us again tomorrow morning for
all the news you need to start your day right
here on Bloomberg Daybreak
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