Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Garen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 3: Shares of Disney are jumping this morning, up more than
Speaker 3: six percent. That follows the company's latest earnings report, and
Speaker 3: we get the latest with Bloomberg's John Tucker, John.
Speaker 4: And Nathan Disney reporting better than expended earnings and issuing
Speaker 4: an upbeat profit outlook thanks to cost cutting and the
Speaker 4: theme parks. Profit this year will Brian's at least twenty percent.
Speaker 4: Now the revenue did fall short of estimates, they said
Speaker 4: the streaming business should still turn a profit in the
Speaker 4: fourth quarter. What shareholders really like is a fifty percent
Speaker 4: boost to the dividend plus a stock buyback. And there's more.
Speaker 4: CEO Bob Biker announcing they're acquiring a one and a
Speaker 4: half billion dollar equity stake in Fortnite maker Epic Games.
Speaker 5: Our new relationship with Epic Games will create a transformational
Speaker 5: games and the entertainment universe that integrates Disney's world class
Speaker 5: storytelling into epics cultural phenomenon.
Speaker 4: Fortnite with the a Little Launch shop and play with
Speaker 4: Disney characters within the Fortnight game. The deal also involves
Speaker 4: new titles in a collaboration with the company's theme parks.
Speaker 4: John Tucker Bloomberg Radio.
Speaker 6: Very, John, thanks well.
Speaker 2: Shares in shipping Giant mayre scare the worst performer on
Speaker 2: the Eurostark six hundred. On a busy morning for earnings
Speaker 2: in Europe, and we go to London and get the
Speaker 2: latest from Bloomberg at daybreak, Europe anchor Caroline Hemgar, Caroline.
Speaker 7: Karen Nathan, Good morning. Mrsk's CEO, Vincent Clerk tells Bloomberg
Speaker 7: that the threat to red sea shipping hasn't peaked yet,
Speaker 7: but the Danish shipping Giant expects higher freight rates to
Speaker 7: disappear later this year and renewed gloom for the industry,
Speaker 7: hence the stock drop. A better story for payment processor
Speaker 7: Adjin shares surging thanks to higher revenue and, according to
Speaker 7: the co CEO, more US customers trusting it. Somewhere in
Speaker 7: the middle frostwa Henri Pinots Curring, owner of Gucci. Pino
Speaker 7: calls twenty twenty three a trying year, but investors conclude
Speaker 7: Gucci's results were better and fared in London. Caroline Hepgar
Speaker 7: Bloomberg Radio.
Speaker 3: Right, Caroline, thank you. We stay in London now for
Speaker 3: a Bloomberg News exclusive. Former Barclay's CEO Jess Staley has
Speaker 3: long maintained he cut off his friendship with Jeffrey Epstein
Speaker 3: once he became boss of the UK bank, but legal
Speaker 3: documents seen by Bloomberg claimed Staley had indirect contact with
Speaker 3: the late pedophile financier for years after that. We get
Speaker 3: the details from Bloomberg's Chris Pitt.
Speaker 6: According to documents that formed part of a now settled
Speaker 6: US virgin Isle's lawsuit against Jess Staley's former employer, JP Morgan,
Speaker 6: and intermediary was used by the two men to stay
Speaker 6: in touch. The filings contradict what Staley told the Barclays
Speaker 6: board about his relationship with Epstein. It also contradicts a
Speaker 6: UK regulatory probe that found no evidence of contact between
Speaker 6: the two men. After October of twenty fifteen, representatives for
Speaker 6: Jess Staley and JP Morgan didn't respond to requests for
Speaker 6: comment on the claims. Spokespeople for Barclays and the FCA
Speaker 6: also declined to comment. In London, Chris Pitt Bloomberg Radio.
Speaker 2: All right, Chris, thanks now, turning to politics back home,
Speaker 2: Senate Republicans delivered a death blow to efforts to secure
Speaker 2: the border, with Mexico blocking it by Purtison compromise. After
Speaker 2: Donald Trump announced the deal, Bloomberg's Amy Morris has more
Speaker 2: from Washington.
Speaker 8: The forty nine to fifty Senate vote virtually guarantees Congress
Speaker 8: will not pass any broad immigration nor border legislation before
Speaker 8: the November presidential election. It leaves no clear path for
Speaker 8: new US military assistance to Ukraine, Israel, and Taiwan. Republican
Speaker 8: Senator James Langford helped negotiate the deal and said his
Speaker 8: political career was threatened.
Speaker 9: That told me flat out, if you try to move
Speaker 9: a bill that solves the border crisis during this presidential year,
Speaker 9: I will do whatever I can to destroy you, because
Speaker 9: I do not want you to solve this during the
Speaker 9: presidential election.
Speaker 8: The Senate will try again today to move the bill
Speaker 8: forward without border provisions. In Washington, Amy Morris Bloomberg Radio.
Speaker 10: Look, Amy, thank you.
Speaker 3: Now, let's get to the latest from the Middle East.
Speaker 3: The US says it has taken out the leader of
Speaker 3: the Iron backed militia that killed three American soldiers last week.
Speaker 3: The Pentagon says the commander of the group, katab Has Belah,
Speaker 3: was killed in a drone strike in Baghdad. Meanwhile, Secretary
Speaker 3: of State Anthony Blinken is trying to brok or a
Speaker 3: cease fire deal between Israel and Hamas, but Israel's position
Speaker 3: is hardening. Bloomberg's Ed Baxter has the latest.
Speaker 11: This comes as Prime Minister Benjaminett Yahoo has summarily rejected
Speaker 11: the Hamas proposal. Blencoln says the Hamas response does have
Speaker 11: some non starters, but he will continue working on a plan,
Speaker 11: he says, and won't give up.
Speaker 12: Our focus today is on all of the diplomacy needed
Speaker 12: to bring it about, including again getting ideas, getting proposals
Speaker 12: from all concerned, and putting those together in a credible
Speaker 12: and clear plan.
Speaker 11: B Lincoln says getting the hostages out as a very
Speaker 11: very high priority. Ad Baxter Bloomberg.
Speaker 2: Radio, all right, Ed, thanks well. Turning to the economy,
Speaker 2: now more clues the Fed is in no rush to
Speaker 2: cut interest rates. Richmond Fed President Thomas Barkin says, it
Speaker 2: makes sense to be patient.
Speaker 13: I'm very supportive of being patient, you know, to get
Speaker 13: to where we need to get. I see at this
Speaker 13: point the trade off, which is you know, coming into
Speaker 13: better balance, is still being in favor of continuing to
Speaker 13: work on inflation.
Speaker 2: And Richmond FED President Thomas Barkin and central bankers have
Speaker 2: left interest rates unchanged since July.
Speaker 3: And in Asia, Karen, China's consumer prices fell last month
Speaker 3: at their fastest paced since the global financial crisis. The
Speaker 3: consumer price index for China dropped eight tenths of one
Speaker 3: percent in January from a year ago. That's the weakest
Speaker 3: since September of two thousand and nine and worse than
Speaker 3: economists expectations for a half percent decline.
Speaker 2: And it's time now for a look at some of
Speaker 2: the other stories making news around the world. For that,
Speaker 2: we're joined by Bloomberg's Amy Morris Amy, good morning, Good.
Speaker 14: Morning, Karen.
Speaker 8: The Supreme Court will be hearing a challenge this morning
Speaker 8: that could determine if Donald Trump will be removed from
Speaker 8: the presidential ballot in some states. Bloomberg's Nancy Lyons.
Speaker 15: Reports Colorado says the Fourteenth Amendment's insurrectionist clause renders former
Speaker 15: President Trump ineligible to run for president due to his
Speaker 15: connections to the January sixth assault in the Capitol. Courts
Speaker 15: in ten other states have ruled the clause does not
Speaker 15: apply to Trump. The Supreme Court will need to determine
Speaker 15: if the clause can be invoked in the absence of
Speaker 15: a court conviction or congressional action. It will also consider
Speaker 15: whether the clause applies to the presidency and whether January
Speaker 15: sixth was an insurrection in which Trump participated. Ahead of
Speaker 15: the arguments, the chair of the Senate Judiciary Committee, Senator
Speaker 15: Dick Durbin, has asked Justice Clarence Thomas to recuse himself.
Speaker 15: In Washington, Nancy lyons Bloomberg Gradient.
Speaker 8: The search continues for five missing Marines in San Diego
Speaker 8: County after a helicopter crash Tuesday night. Crews have found
Speaker 8: the helicopter wreckage, but no sign of the marines. CalFire
Speaker 8: Captain Mike Cornett a remote.
Speaker 16: Area the Cleveland National Forest. There's rugged terrain out here.
Speaker 16: There's lots of rocks, there's truck trails that go through
Speaker 16: the area, but the mud and the snow, it can
Speaker 16: become treacherous to travel.
Speaker 8: The Superstallion helicopter was part of the third Marine Aircraft
Speaker 8: Wing and was going from Creech Air Force Base near
Speaker 8: Vegas to Marine Corps Air Station Miramar in San Diego.
Speaker 8: The Biden Administration is working with the top US artificial
Speaker 8: intelligence companies to craft federal standards on artificial intelligence to
Speaker 8: ensure its use safely and responsibly. Commerce Secretary Gina Raimondo
Speaker 8: says Apple, Amazon, OpenAI, Microsoft Meta and others will be
Speaker 8: working with the National Institute of Standards and Technology, along
Speaker 8: with civil society groups, academics, and state and local government
Speaker 8: officials to establish AI safety standards. Scientists at Stanford University
Speaker 8: are working on a blood test to potentially save millions
Speaker 8: of lives by detecting cancer much earlier than before. They
Speaker 8: say the samples are far larger than what Theeronos was
Speaker 8: doing before the company tanked, and insist they are able
Speaker 8: to show results. The CDC is warning about the rise
Speaker 8: in measles infections in the US. There have been twenty
Speaker 8: three reported cases since December, mostly in children who have
Speaker 8: not been vaccinated. Global News twenty four hours a day
Speaker 8: and whenever you want it with Bloomberg News.
Speaker 17: Now.
Speaker 8: I'm Amy Morris than This is Bloomberg Karen.
Speaker 2: All right, Amy, thanks. We do bring you news throughout
Speaker 2: the day right here on Bloomberg Radio. But now, as
Speaker 2: Amy said, you can get the latest news on demand,
Speaker 2: and that means whenever you want it. Just subscribe to
Speaker 2: Bloomberg and News Now. You can get the latest headlines
Speaker 2: right at the click of a button. Get informed on
Speaker 2: your schedule. You can listen and subscribe to Bloomberg News
Speaker 2: Now on the Bloomberg Business app, Bloomberg dot Com plus apples, Spotify,
Speaker 2: and anywhere else you get your podcasts. Time now for
Speaker 2: the Bloomberg Sports Update. Here's John stash Hour John Karen.
Speaker 17: The hottest team with the NBA the Cleveland Cabelaers. They
Speaker 17: lost on New Year's Days. Since then, they're fifteen and one.
Speaker 17: They got forty points of Donovan Mitchell and one one
Speaker 17: fourteen to one oh six at Washington. The Cavs have
Speaker 17: moved into second place in the East. Then there are
Speaker 17: the Philadelphia seventy six Ers, who are going in the
Speaker 17: opposite direction, struggling without their star center Joe Elmbed, who
Speaker 17: could be out another month with the knee injury. Six
Speaker 17: Ers have lost seven to last eight. They lost at
Speaker 17: home to Golden State one twenty seven to one oh
Speaker 17: four Celtics thirty ninth winn of the season. They're twenty
Speaker 17: four and three at home thirty one points for Christaps
Speaker 17: Porzingis celtsbyt Atlanta one twenty five to one seventeen. They
Speaker 17: also acquired a player, getting big man Xavier Tillman from Memphis.
Speaker 17: The NBA trade deadline three Eastern today. Big names not
Speaker 17: expected to be moved, but there certainly will be some movement.
Speaker 17: College hoops Duke by eighteen over Notre Dame, Auburn by
Speaker 17: eighteen over Alabama. Tennessee bleue out LSU by twenty one upset.
Speaker 17: Wisconsin lost at Michigan seventy two to sixty eight. Nick Saban,
Speaker 17: retired as Alabama football coach, will work for ESPN. He'll
Speaker 17: be part of the College Game Day show. He'll also
Speaker 17: work on the NFL Draft. Else Cowboys looking for a
Speaker 17: defensive cordator. They've already interviewed Ron Rivera, just fired as
Speaker 17: the head coach in Washington. Also Mike Zimmer, the former
Speaker 17: head coach in Minnesota. The latest interview for the job
Speaker 17: Rex Ryan, who hasn't had an NFL coaching job since
Speaker 17: twenty sixteen, when he's the head coach in Buffalo. Before that,
Speaker 17: the head coach of the Jets.
Speaker 14: He's been working for ESPN.
Speaker 17: Johns Dashawer Bloomberg Sports.
Speaker 10: From coast to coast from New York to San Francisco,
Speaker 10: Boston to Washington, DC nationwide on SIRISXAM, the Bloomberg Business
Speaker 10: app in Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 1: Good morning.
Speaker 3: I'm Nathan Hager here now with a closer look at
Speaker 3: the biggest earning story of the morning. We continue to
Speaker 3: watch shares of the Walt Disney Company. The entertainment giant
Speaker 3: reported better than expected results and an upbeat out look
Speaker 3: for the full year. Cost cuts and booming business at
Speaker 3: Disney theme parks are getting a lot of the credit
Speaker 3: for this, but for more on These results were joined
Speaker 3: by Bloomberg's critty goop.
Speaker 6: Yeah, pretty would you call this a blowout quarter?
Speaker 3: Is it a turnaround quarter?
Speaker 17: What do you make of these numbers?
Speaker 14: It's definitely a turnour around quarter. It's a pivot, if
Speaker 14: you will. For the Disney story. Look, let me think
Speaker 14: about Disney. We think about it from a kind of
Speaker 14: tech perspective, a streaming perspective that doesn't start contrast to
Speaker 14: what Disney's core business actually has been historically, which is
Speaker 14: its international parks business. This is where their profit get
Speaker 14: this rows by four times, sales increasing thirty five percent
Speaker 14: year over years. So it looks like a lot of
Speaker 14: more visitors and attendance when it comes to some of
Speaker 14: their Disney parks, which again is not really the strategy
Speaker 14: that they've been leaning into. They've really been leaning into
Speaker 14: the media business, the Disney streaming business as well. When
Speaker 14: you look at the subscriber count, that streaming service fell
Speaker 14: to about one hundred and forty nine point six million
Speaker 14: subscribers in the quarter of the projections for about one
Speaker 14: hundred and fifty one point two million, So you can
Speaker 14: see that those numbers coming in just a little bit softer.
Speaker 14: But the forecast here is what really matters. That's what
Speaker 14: investors are responding to Disney saying their profit it's going
Speaker 14: to rise twenty percent, bringing up to about four dollars
Speaker 14: and sixty cents to share. The estimate was four dollars
Speaker 14: and twenty seven cents. If that wasn't enough to sweeten
Speaker 14: the pot, they're also raising their dividend by fifty percent
Speaker 14: and approving a three billion dollar stock buy back program.
Speaker 14: All of this on the back of some pretty other
Speaker 14: hefty deals that they've made. They've talked about this partnership
Speaker 14: that was announced a couple of days ago, bundling ESPN
Speaker 14: content with programming from Fox and Warner Brothers Discovery creating
Speaker 14: an all new sports streaming service. So again, this is
Speaker 14: something that Bob Eiger had warned about several quarters ago,
Speaker 14: really watching for what they could do with their Hulu
Speaker 14: business and their ESPN business, and it looks like we've
Speaker 14: gotten those answers.
Speaker 3: And with all those answers, Kritty, that raises the question
Speaker 3: of whether all this is going to be enough to
Speaker 3: fend off a lot of the pressure we've seen going
Speaker 3: into these earnings from activist investors.
Speaker 14: Yeah, and Nelson Pelts has not made Bob Aiger's life
Speaker 14: any easier at all when it comes to them the
Speaker 14: activist pressures. But again, this it all comes with the
Speaker 14: territory of kind of trying out these new businesses. Now,
Speaker 14: it looks like with some of the board seats here
Speaker 14: for now and for the temp for the foreseeable future,
Speaker 14: perhaps they can fend it off. But they really have
Speaker 14: to deliver on some of these new strategies. The fact
Speaker 14: that they are again doubling down on their streaming business,
Speaker 14: a sports streaming business, at a time when their Disney
Speaker 14: Plus streaming service is already coming in soft is a
Speaker 14: pretty big deal. But their forecasts are so rosy now
Speaker 14: they just have to execute on it. And remember this
Speaker 14: is also coming with a pretty big steak that Disney
Speaker 14: is taking now in gaming one point five billion dollars
Speaker 14: to use me in Fortnite maker Epic Games. This is
Speaker 14: a company that Disney had had to kind of go
Speaker 14: to court, Apple had had to go to court for
Speaker 14: as well. The fact that Disney is now taking a
Speaker 14: steak in it is a pretty big deal.
Speaker 3: Yeah, really interesting to hear that, coming, particularly after that
Speaker 3: announcement on the sports streaming service, This one and a
Speaker 3: half billion dollar steak in Epic Games. I'm sure that
Speaker 3: peaked a lot of your interests given your background in
Speaker 3: video game coverage in the past. What do you make
Speaker 3: of this strategy of, you know, trying to lean even
Speaker 3: more in tech when they've had so many struggles, at
Speaker 3: least in the last couple of quarters on their more
Speaker 3: traditional media business.
Speaker 14: Well, I mean it speaks to them branching out for
Speaker 14: our international audience that's listening to this. Nathan is referring
Speaker 14: to the fact that I used to cover video games
Speaker 14: as my very first speed at Bloomberg. The stocks of
Speaker 14: it at least and what I learned from that is
Speaker 14: that this is a growing business that has recently taken
Speaker 14: on a lot of regulatory pressure, but it's one that
Speaker 14: is a crowded space when you talk about some big games.
Speaker 14: So when you see a game like Fortnite, for example,
Speaker 14: really excelling, it makes it a very attractive acquisition target.
Speaker 14: And that's exactly where Disney comes in here with that
Speaker 14: one point five billion dollar steak. Because Fortnite has turned
Speaker 14: out to be such a money maker for epic games,
Speaker 14: Disney wants in on it. In terms of its broader strategy,
Speaker 14: it's quite clear that Disney is doing what Disney hasn't
Speaker 14: done historically, which is really diversify. They're talking about sports streaming,
Speaker 14: they're talking about their Disney Services streaming, They're actually making
Speaker 14: more money on their parks business, and now they're looking
Speaker 14: at gaming as well. Not to mention Nathan, I can't
Speaker 14: believe gone this far and not discussed Taylor's With's movie,
Speaker 14: concert movie or whatever is hitting Disney Services. Mowana sequel
Speaker 14: is coming out this year. The Taylor Swift story in
Speaker 14: itself adds a lot of value to Disney.
Speaker 3: Interesting. So what do you make of the track that
Speaker 3: bob Iger is painting here the path ahead for the
Speaker 3: rest of this year and beyond.
Speaker 14: Well, look, he has just recently been reinstated. The history,
Speaker 14: the management history matters here because Bob Iger had an
Speaker 14: initial stint at the company and then was had I
Speaker 14: left the company, and then is now coming back. Because
Speaker 14: you start to see this pressure that he needs to
Speaker 14: put Disney's balance sheet back on track. It kind of
Speaker 14: seems like he's doing this, But Bob Iger's reputation historically
Speaker 14: has been one of big moves, one where he takes
Speaker 14: these kind of shots in the dark and says, guys
Speaker 14: have a little bit of faith in me, and this
Speaker 14: is what he does. So it's not surprising at all
Speaker 14: that he's making these pretty big bets in both sports
Speaker 14: streaming and gaming.
Speaker 1: This is Bloomberg day Break Today morning brief on the
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