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