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: One of Wall Street's heavyweights says the US economy is
Speaker 2: not out of the woods yet. We get the details
Speaker 2: from Bloomberg's John Tucker, John.
Speaker 3: And Nathan Jamie Diamond says, don't take a US recession
Speaker 3: off the table just yet. The JP Morgan Chase CEO
Speaker 3: telling a business son of the chance of a soft
Speaker 3: landing in the next year or two, he's about thirty
Speaker 3: five to forty percent. Diamond says, economic indicators and been
Speaker 3: distorted by COVID nineteen and he takes them with a
Speaker 3: grain of salt. Diamond telling the Financial Review business summit
Speaker 3: in Sydney this morning, well, the US economy is kind
Speaker 3: of booming currently, the risk of a recession remains. His
Speaker 3: comments strike a slightly less optimistic tone in than the past.
Speaker 3: He's also advising the Federal Reserve wait for more before
Speaker 3: lowering interest rates. Offen Schaar Jerome Powell last week suggest
Speaker 3: that the Central Bank is getting close to the confidence
Speaker 3: it needs to start lowering interest rates, and traders are
Speaker 3: fully pricing in a June rate cut. John Tucker, Bloomberg Radio.
Speaker 1: All right, John, Thanks. While investors analyze Jamie Diamond's take
Speaker 1: on the economy, they'll get another key reading on inflation.
Speaker 1: This morning, we get the February reading on consumer prices
Speaker 1: and a preview with Bloomberg's Michael McKee.
Speaker 4: Two things should define February consumer prices, base effects and
Speaker 4: seasonal factors. Because inflation was high a year ago, even
Speaker 4: a fairly strong rise in prices will still send the
Speaker 4: year over year numbers lower. The Fed will see continued progress.
Speaker 4: January was also influenced by turn of the year price
Speaker 4: increases that aren't expected to be repeated, which should mean
Speaker 4: a retreat from that month's strong increase in inflation. The
Speaker 4: category to watch, as always is housing. The government's home
Speaker 4: ownership calculation was unexpectedly hot in January. Economists think that
Speaker 4: fell back in February.
Speaker 5: Micha.
Speaker 4: I'm m Keey, Bloomberg Radio.
Speaker 6: All right, Mike, Thanks.
Speaker 2: Dan Asia's speculation is growing that the Bank of Japan
Speaker 2: may be getting closer to raising interest rates. The decisions
Speaker 2: do to be made at next week's policy meeting, and
Speaker 2: sources to say a final decision will be made after
Speaker 2: official see. The initial tally from spring wage talks on
Speaker 2: Friday April remains the most popular prediction for a rate
Speaker 2: move from the boj among economists surveyed by Bloomberg.
Speaker 1: Well in Europe, Nathan Rupert Murdoch and News Corps designing
Speaker 1: a joint bid for the Telegraph newspaper, and we get
Speaker 1: the details from Bloomberg cun parts Ewan.
Speaker 7: Good morning, karenon Nathan, it's the battle for the one
Speaker 7: hundred and seventy five year old Telegraph newspaper. Bloomberger has
Speaker 7: learned that Rupert Murdoch's News Corps, together with the owner
Speaker 7: of the Daily Mail newspaper of Hell, talks about a
Speaker 7: potential joint takeover of the Telegraph. The bid would come
Speaker 7: together with UAE backed investment fund Redbird IMI. Now a
Speaker 7: joint bid would result in a smaller state for the
Speaker 7: Amorti Fund, and that's important because British politicians have expressed
Speaker 7: uneasy about the sale of a street newspaper to a
Speaker 7: Middle Eastern investor. I'm your pelt'spoinback radio.
Speaker 2: All right you and thank you. Back In the US,
Speaker 2: President Biden's mapping out a vision for a second term.
Speaker 2: In his budget request for the next fiscal year, The
Speaker 2: seven point three trillion dollar proposal calls for monthly tax
Speaker 2: credits to offset high mortgage rates, childcare subsidies for parents,
Speaker 2: and new powers to lower prescription drug costs. It would
Speaker 2: be paid for in part with higher corporate taxes and
Speaker 2: a new twenty five percent minimum tax on billionaires. President
Speaker 2: Biden pitched the proposal during a stop in Goffstown, New Hampshire.
Speaker 8: Now it's time to go further and give medicare the
Speaker 8: power to negotiate lower prices or even more drugs over
Speaker 8: the next decade.
Speaker 9: Folks.
Speaker 8: If we're able to do that will not only save lives,
Speaker 8: We're going to save taxpayers and other estimated two hundred
Speaker 8: billion dollars.
Speaker 2: The President Biden's budget has little to no chance of
Speaker 2: passing Congress, but he hopes it'll get voters backing before
Speaker 2: the November election.
Speaker 1: Well on Capitol Hill, Nathan and bill that would force
Speaker 1: a sale of TikTok Is Steam in the House. The
Speaker 1: legislation with block app stores and internet service providers from
Speaker 1: offering the video sharing app unless it's Chinese owner by
Speaker 1: Dance sells it within six months. Democratic Congressman Jamie Raskin
Speaker 1: says it's a matter of national security.
Speaker 10: Our freedom of speech does not depend on authoritarian government's
Speaker 10: having access to our private data.
Speaker 1: The former president Donald Trump is suggesting he no longer
Speaker 1: supports banning TikTok. In an interview with CNBC, he said
Speaker 1: Facebook is the real threat and a lot of kids
Speaker 1: would go crazy, in his words, without TikTok.
Speaker 6: The bill comes up for a vote in the House tomorrow.
Speaker 2: In health News, Medicare may soon be required to cover
Speaker 2: the blockbuster weight loss drug Wigovy for heart disease patients
Speaker 2: with obesity. That story from Bloomberg's Jeff Bellinger.
Speaker 11: Medicare, the federal health insurance program for the elderly and
Speaker 11: some people on long term disability, does not currently cover
Speaker 11: weight loss drugs, but after the FDA said with Goovy
Speaker 11: could be used to helped prevent life threatening cardiovascular events,
Speaker 11: it now raises the question of whether Medicare prescription drug
Speaker 11: programs will have to cover it for patients with a
Speaker 11: history of heart disease. A spokesperson tells us the Centers
Speaker 11: for Medicare and Medicaid Services is reviewing the FDA's action
Speaker 11: to expand the use of we go Vy to reduce
Speaker 11: the risk of cardiovascular death, heart attack, and stroke in
Speaker 11: adults with cardiovascular disease and either obesity or overweight. The
Speaker 11: popular weight loss drug, which has helped millions of American
Speaker 11: shed pounds, was given an expanded label by US regulators
Speaker 11: last week. Jeff Bellinger, Bloomberg Radio, all.
Speaker 1: Right, Jeff, thanks for staying in the medical field. One
Speaker 1: of the biggest movers today is at Katia Pharmaceuticals AT
Speaker 1: stock down eighteen percent in early trading. One of the
Speaker 1: company's drugs failed to meet goals of a late stage
Speaker 1: trial in a trial for schizophrenia.
Speaker 2: On the flip side, Care and shares of Oracle are
Speaker 2: surging thirteen and a half percent after reporting strong sales
Speaker 2: with growth in its closely watched cloud computing business were
Speaker 2: on that from Bloomberg's Charlie Pellett.
Speaker 9: Cloud revenue jump twenty five percent to five point one
Speaker 9: billion dollars in the period that ended in February. That
Speaker 9: surpassed Wall Street's five point zero six billion dollar estimate.
Speaker 9: Of that, one point eight billion came from renting out
Speaker 9: computing power and storage over the Internet, on three point
Speaker 9: three billion from applications The Austin based company known for
Speaker 9: its database software, is focused on expanding its cloud infrastructure
Speaker 9: business to more forcefully compete with Amazon, Microsoft, and Alphabet's Google.
Speaker 9: In New York, Charlie Pellett Bloomberg.
Speaker 6: Radio, All right, Charlie, thanks well.
Speaker 1: Pay raises for a pair of top of Bank of
Speaker 1: America execs. Even after the CEO's pay was cut, the
Speaker 1: bank disclosed pay increases of more than ten percent for
Speaker 1: two of its highest ranking executives. Chief Financial Officer Alistair
Speaker 1: Borthwick and Jim Demare headed the bank's Global Markets division.
Speaker 1: The pay boosts come a month after reporting CEO Brian
Speaker 1: when ahance compensation was cut in twenty twenty three. Borthwick's
Speaker 1: total compensation climbed to twelve million dollars year, while Jim
Speaker 1: Damari saw his pay rise to twenty one million. Time
Speaker 1: now for a look at some of the other stories
Speaker 1: making news in New York and around the world. For that,
Speaker 1: we're joined by Bloomberg's Michael Barr. Michael, good morning.
Speaker 5: Good morning herein the Israeli military says about one hundred
Speaker 5: projectiles were launched from Lebanon into Israel today. It comes
Speaker 5: after Palestinians and Gaza began fasting for the holy month
Speaker 5: of Ramadan. There were no immediate reports of injuries or
Speaker 5: damage following the strikes, which appeared to be in response
Speaker 5: to Israeli airstrikes deep inside Lebanon. On Monday, you Win
Speaker 5: Secretary General Antonio Guterres called for an immediate ceasefire in Gaza.
Speaker 5: Goud Terra says, the eyes of the world and history
Speaker 5: are watching.
Speaker 12: We have witness months after months of civilian killing and
Speaker 12: destruction at the level that is unprecedented in all my
Speaker 12: years as Secretary General. Meanwhile, life saving relief for Palestinians
Speaker 12: in Gaza is coming in trickles, if it comes at all.
Speaker 5: The uns Antonio Guterre says, hunger and the humanitarian crisis
Speaker 5: are worsening across Gozam. The Republican National Committee just fired
Speaker 5: more than sixty saffers yesterday, just days after Donald Trump,
Speaker 5: the party's presumptive nominee, handpicked the organization's leadership. According to
Speaker 5: people familiar with the matter, Chris Lasovita, senior Trump aid,
Speaker 5: is splitting time between advising the presidential campaign and as
Speaker 5: the committee's chief operating officer. On Friday, the RNC voted
Speaker 5: to install North Carolina Republican Committee chair Michael Watley and
Speaker 5: the ex president's daughter in law, Laura Trump as co chairs.
Speaker 5: Joe Biden and Donald Trump hope to clinch their party's
Speaker 5: presidential nominations with dominant victories in state primaries. Today. Primary
Speaker 5: contest will be held in Georgia, Washington State, Mississippi, and Hawaii.
Speaker 5: In what may be a major step towards the end
Speaker 5: of the violence in Haiti, the nation's acting Prime Minister
Speaker 5: will resign. The Caribbean Community Organization announced late last night
Speaker 5: that Ariel Henry will step down once an interim leader
Speaker 5: has been named. Ginese President Irfan Ali made the announcement
Speaker 5: at a conference in Jamaica.
Speaker 13: We acknowledge the resignation of Prime Minister Ariel Henri upon
Speaker 13: the establishment of a transitional Presidential Council and the naming
Speaker 13: of an interim Prime Minister.
Speaker 5: This comes amid a surge of gang violence that has
Speaker 5: pushed the country to the brink of anarchy. Remember the
Speaker 5: Brooklyn preacher who was robbed of a million dollars of
Speaker 5: jewelry during a church service. Now Lamar Miller whiteh had
Speaker 5: known for his flashy lifestyle, was found guilty in federal
Speaker 5: court in Manhattan of wire fraud, attempted extortion, and lying
Speaker 5: to the FBI Global News twenty four hours a day
Speaker 5: and whenever you want it with the Bloomberg News Now.
Speaker 5: I'm Michael Barr, and this is Bloomberg Karen.
Speaker 6: All right, Michael, thank you.
Speaker 4: Well.
Speaker 1: We do bring a news throughout the day here on
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Speaker 1: News Now to get the latest headlines read at the
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Speaker 1: anywhere else you get your podcasts. Time now for the
Speaker 1: Bloomberg Sports Update, brought to you by Tri State OUDI.
Speaker 1: For that, we bring in John stash Hour, John.
Speaker 6: Okay, Kearn.
Speaker 14: A flurry of NFL off season activity, with the Giants
Speaker 14: adding four players all after the news that Saquon Barkley
Speaker 14: was leaving, not a surprise since he was a free agent,
Speaker 14: but it is a bit of a sting to Giants
Speaker 14: fans that he's going to their division rival Philadelphia Eagles
Speaker 14: got more money from Philly than the Giants are willing
Speaker 14: to give him just under sixteen million a year, second
Speaker 14: most thankver for a running back. The Giants will replace
Speaker 14: Barkley with Devin Singletary. Brian Dabole knows him from his
Speaker 14: time in Buffalo. Last season in Houston, Singletary had over
Speaker 14: one thousand yards from scrimmage. Help coming to the giants
Speaker 14: much beligned offensive line. They signed guard John Runyon from
Speaker 14: Green Bay, tackled Jermaine lu Muner from the Raiders, and
Speaker 14: the Giants have added a big time pass rusher, Brian
Speaker 14: Burns was a Pro bowler with Carolina. Giants sent two
Speaker 14: draft picks with the Panthers to get Burns. They quickly
Speaker 14: locked him up with a one hundred and fifty million
Speaker 14: dollar contract. As for the Jets, they signed guard John
Speaker 14: Simpson from the Ravens, defensive lineman Javon Kinlow from the
Speaker 14: forty nine ers, and unlike last year, the Jets now
Speaker 14: have a dependable backup quarterback, signing veteran Tyrod Taylor, who
Speaker 14: was most recently a Giant. The Falcons have their QB
Speaker 14: signing Kirk Cousins. Four years one hundred and eighty million.
Speaker 14: If he makes all that, Cousins will have earned over
Speaker 14: four hundred million dollars in his career. Today is Darryl
Speaker 14: Strawberry's sixty second birthday. He's in a hospital in Saint Louis,
Speaker 14: the ex met and Yankee slugger revealed, but he just
Speaker 14: suffered a heart attack, but set in his post it
Speaker 14: all was well. The Yankees, holding their breath should learn
Speaker 14: today the results of the Mrion Garrett Cole's elbow the
Speaker 14: aceh picture of feeling discomfort at the Garden. Rangers beat
Speaker 14: the Devils three to one, the Islanders six game win
Speaker 14: streak and did shut out in LA three nothing. Bruins
Speaker 14: and Capitals both lost Eelphics and Warriors one.
Speaker 2: John Stashawa Bloomberg Sports Karen and Nathan Okay, John. Thanks,
Speaker 2: Let's get more now on the latest economic forecast from
Speaker 2: JP Morgan Chase CEO. Jamie Diamond, the Wall Street giant
Speaker 2: who once warned an economic hurricane was coming for the US,
Speaker 2: now says he would not take the risk of a
Speaker 2: recession off the table just yet, though he says that
Speaker 2: doesn't mean the FED should jump the gun when it
Speaker 2: comes to cutting interest rates. For more on this, we're
Speaker 2: joined by Bloomberg's Kritty Gupta. So Critty maybe a little
Speaker 2: bit of tempering here of the economic warning signs, but
Speaker 2: Jamie Diamond is still sounding a bit of an alarm,
Speaker 2: a little.
Speaker 15: Bit of an alarm, but not something that's that counter
Speaker 15: two consensus. Look, he does say in this interview that
Speaker 15: seventy to eighty percent of excuse me, I say markets
Speaker 15: are pricing in a seventy eighty percent chance of a
Speaker 15: soft landing, which basically means everything is going to go find.
Speaker 15: He even says that the worst case scenario, it looks like,
Speaker 15: would just be stagflation, which even that is better than
Speaker 15: a recession. That being said, he's really pointing to the
Speaker 15: idea of the Fed cannot jump the gun when it
Speaker 15: comes to cutting interest rates, and he says, look, you're
Speaker 15: still dealing with very strong employment numbers, very strong wages
Speaker 15: that are continuing to go up. He actually says the
Speaker 15: credibility is the bigger worry here, that the Fed's credibility.
Speaker 6: They have a lot going.
Speaker 15: For them right now, they've been right in a lot
Speaker 15: of ways, but they've also can't really kind of accelerate
Speaker 15: because of those market pressures, and that's kind of what
Speaker 15: he's pointing to. He's still, i mean saying, look, the
Speaker 15: consumer is still very strong, which is why he's a
Speaker 15: stagnation is a more likely scenario than recession, but he says,
Speaker 15: still pointing out that it's not completely off the table,
Speaker 15: which again, Nathan, not out of the ordinary.
Speaker 2: Yeah, well, I mean, but more recently Critty, the JP
Speaker 2: Morgan's CEO, had been sounding a little bit more positive
Speaker 2: about the market. Get outlook, what's behind this view that
Speaker 2: things might be changing just a little bit when it
Speaker 2: comes to the outlook for markets.
Speaker 15: Well, I think it's a similar outlook that a lot
Speaker 15: of the economists and strategist we speak to have been saying,
Speaker 15: which is that this is looking a little too good
Speaker 15: to be true in that, yes, there is consumer resilience.
Speaker 15: And Jamie Diamond, even Brian moynihan over at Bank of
Speaker 15: America have both been some pretty strong advocates for the
Speaker 15: US consumer and have been right in that it's the
Speaker 15: US consumer that's strong, whereas if you look at Europe
Speaker 15: or Asia, that's where we're actually seeing a lot of
Speaker 15: the weakness. The concern is that there is such a
Speaker 15: thing as too strong, as my mom would say, and
Speaker 15: I would never admit this to her. She's a good thing,
Speaker 15: she's still asleep. Too much of a good thing is
Speaker 15: a bad thing, and everything in moderation. I think that's
Speaker 15: kind of the point that Jamie Diamond is getting to,
Speaker 15: Whereas that if you're talking about that kind of strong
Speaker 15: consumer that continues to be strong, well, that is inflationary
Speaker 15: and at its worst stagflationary, which means that ultimately things
Speaker 15: could get stuck at a point where you're only growing
Speaker 15: so much, and in the long term that is actually
Speaker 15: a negative thing.
Speaker 6: History has shown.
Speaker 2: Yeah, And one thing that stood out to me from
Speaker 2: Jamie Diamond's comments to this summit is that we should
Speaker 2: take post COVID economic data with a grain of salt.
Speaker 2: I guess that speaks to this idea of fed caution
Speaker 2: fed credibility as well.
Speaker 15: It does look fed caution fed credibility are two different
Speaker 15: things here, because the reason that the Federal Reserve might
Speaker 15: actually be thinking of kind of front running these cuts,
Speaker 15: which by the way, all indications point to June in
Speaker 15: terms of kind of the pushback that Chair Powell has
Speaker 15: received and could even push it back further. But a
Speaker 15: lot of the concerns here is that the markets are
Speaker 15: ultimately driving the inflationary story. And Nathan, I'm going to
Speaker 15: nerd out for a second. Bear with me, hold your
Speaker 15: breath if you can. But basically, you're seeing so much
Speaker 15: money on the front end of the curve that the
Speaker 15: direct impact into the economy from the markets is just
Speaker 15: bigger than it usually is. Because of the way the
Speaker 15: markets are functioning on the front end, they're not diving
Speaker 15: into ten years or thirty years for the bond market.
Speaker 15: And that's the concern for the Federal Reserve because we
Speaker 15: talk a lot about well, they could cut rate, then
Speaker 15: the economy will feel that rate cut twelve to eighteen
Speaker 15: months down the road. That's why the lag is so important.
Speaker 15: But what happens if you're starting to see the markets
Speaker 15: a little bit more in control. There was a FED
Speaker 15: survey out yesterday that suggested that people are expecting inflation
Speaker 15: expectations higher that perhaps even in today's CPI report you
Speaker 15: could see an uptick in inflation for the second time
Speaker 15: in a row. What does the market do when you
Speaker 15: see that kind of data and do that Does that
Speaker 15: have a more direct impact on the economy than what
Speaker 15: the Federal Reserve decides to do in a couple months time.
Speaker 10: This is Bloomberg day Break Today, your morning brief on
Speaker 10: the stories making news from Wall Street to Washington and beyond.
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