Airbnb CEO on Record Earnings and Cisco Shares Surge

and an ol Passo mall leaves one debt. I'm Milkauel Barter. More ahead, I'm trying stash and sports. Easy win for the Knicks in Atlanta, the Nets beat the Heath and the Rangers one in Vancouver. That's all straight ahead on Bloomberg day Break, The business news you need disturn your day, and just one fifteen minute podcast each pointing on Apple, Spotify, the Bloomberg Business Appen everywhere you get your podcasts. Good morning, I'm Nathan Hagar and I'm Karen Moscow. Here are the

stories we're following today. Well, Karen, the rise in stocks this morning follows solid earnings. Let's begin in Europe, where shares of Standard Chartered are up more than one percent. The London based lender announced a billion dollar buy back and is forecasting higher returns. We spoke with the chief financial officer, Andy Halford. The more we can drive the profitability of the business, the more we'll get the business back in the fairly valued and as I said, that

is what we are completely focused upon. What is fair value? Time will tell, but we are driving the business performance. Standard Chartered CFO Andy Halford says the bank is optimistic on income growth for this year thanks to rising interest rates and a brighter economic outlook. Well, Nathan Shares a Commerce Bank Or up almost eight percent. In Frankfurt. The German bank says it expects profits for this year to

be even higher than in two. And here's Commerce Bank chief financial officer Bettina or lob and twenty two was really really a strong year. I mean the last time that we have showed a similar net income was out within It is because of very strong revenues, clearly also driven by the net interested in great environment, but also because of a very disciplined cost management. And CFO Betina or a Lab tells us Commerce Bank is planning a

dividend for the first time in four years. Like here in the US, care and shares of Cisco are up more than four percent. The computer networking companies giving an upbeat forecast. Woodgin Hoe is a senior technology analyst at Bloomberg Intelligence. Fantastic numbers all across the board and look ciscoes part for the course for what I've seen in

the rest of networking. We saw ast of Networks beat and raised last last week, as well as Juniper Networks raised three guidance because demand for networking gear has been resilient and Cisco is proving that to be the case. Bloomberg Intelligence senior analyst woodgin hosts Cisco's forecasting sales this quarter will rise at least eleven percent. Well as good as a Cisco gains are this morning, Nathan, they don't

compare to the performance of Airbnb. Yesterday, the stocks stored more than cent after a record year in an outlook that beat estimates. We spoke with CEO Brian Chesky. We're seeing more recovery short term stays. We're seeing more people go to cities, and we're seeing more people cross borders between urban a cross border. That was around eight percent

of our ninth book before the pandemic. So it's really more a matter of a recovery of the old ways of traveling and a real sustainability of the new ways, like including people staying longer and traveling more to places. Brian Chesky says Airbnb had its highest number of active bookers ever last quarter. Here more of our interview with the Airbnb CEO coming up shortly on Bloomberg Daybreak. Well, Karen, we have some headlines on US China relations this morning.

There's word Beijing is sanctioning both Lockheed Martin and a subsidiary of raytheon technologies. China says it's over those US companies participation in arms sales to Taiwan. The Chinese government will band trade with Lockheed and raytheon missiles and defense. Well. Meantime, in Washington, the fight over spending in the dead ceilings starting to intensify. The Congressional Budget Office says the government could default as soon as July if Congress fails to

raise the debt ceiling. Democratic Senator Ben Carden says he's all for cutting the deficit, but not by cutting entitlements. Well, we need to do is have an agreement between Democrats and Republicans. What the appropriation bills are going to contain, the capsule that spending, as to how we're going to pay for it, Does it include so security and Medicare cuts? Now?

Maryland Senator Ben Carden spoke with Our Washington corresponded Joe Matthew on Bloomberg Sound on Catch the show weekdays at five pm Eastern on Bloomberg Radio or listen on demand wherever you get your podcasts. Meantime, Karen, President Biden is heaping praise on an unlikely figure. He's sending kind words to Elon Musk for an offer to open open up Tesla's supercharger network to e V rivals. Bloomberg said, Baxter

has the story. The President says it is a big deal, Biden saying, and building the U S e V charging network, we have to ensured that as many charges work for as many drivers as possible. So as part of the agreement, at least hundred of Tesla's charging stations across the US will be available to all e V users by the end of it will include at least thirty five hundred of Tesla supercharger stations, which will tend to be near highways in San Francisco. I'm at Baxter Bloomberg Daybreak. All right,

and thanks. Well, there's more news out of Tesla this morning. We're learning the company has fired dozens of workers at its factory in Buffalo, New York. The move comes a day after employees there announced a union campaign, as according to a complaint file, but the National Labor Relations Board it accuses Tesla of retaliating for union activity. We've been telling you about a slew of companies slashing jobs this year, from big banks to big tech. But today it looks

like fidelities bucking the trend. It's hiring. We get the story from Bloomberg's Doug Krisner. The asset manager is looking to fill about four thousand new roles by mid year as rivals reduce their ranks. The additional positions will focus on customer service and technology. Two was a year of record hiring for Boston based Fidelity, bringing its head count to sixty eight thousand. Other big investment firms have been

trimming staff given economic uncertainty and softer financial markets. Last month, Blackrock announced plans to cut five hundred jobs, or two and a half percent of its global workforce, and earlier this month we reported Alliance Bernstein eliminated more than a hundred jobs in New York. I'm Doug Prisoner, Bloomberg Daybreak. Thanks Doug. Futures are flat this morning, SMP futures are down a point down, futures down eight, NASTAC futures down

two points. Straight ahead, your latest local headlines and a check of sports. This is Bloomberg. It is fifty eight degrees in New York. We're gonna have some showers this afternoon. Another mile day on tap with highs in the low sixties. This evening will get down to the mid fifties, but temperatures will rise overnight. Time now to take a look at some of the other stories making news in New York and around the world with Bloomberg's Michael bar Good morning, Michael,

Good morning. Nathan, a white supremacist who killed ten black people at a Buffalo supermarket, has been sentenced to life in prison. Before Peyton Gender's sentencing, relatives of his victims expressed the pain and rage over his racist attack, and Genderan was sentenced by Judge Susan Egan there is no place for you, or you're ignorant, hateful and evil ideologies

in a civilized society. New York Governor Kathy Hokel. Justice has been done, and I hope that the families will find peace and comfort in the knowledge that this person never again walked the streets of this earth to do harm to others as he did to their loved ones. Yesterday's sentencing was disrupted briefly when a man in the court rushed at general and was quickly restrained. The man

will not be charged. Meanwhile, Governor Okele suffered a set back after the State Senate turned thumbs down on her pick to leave the State Court of Appeals. After weeks of intra party fighting, Senate Democrats held a floor vote on the nomination of Judge Hector Lassalle, sal would have been the first hispanding individual to head the top court.

A judge ordered that the sixty two year old driver of a U haul truck that barreled through a New York City neighborhood, killing one person and injuring eight others, will have to undergo a psychiatric evaluation while in custody. Wang Sore, who was charged with the murder and attempted murder in the connection with Monday's deadly rampage. Made his first court appearance in Brooklyn. The judge ordered him to

remain in custody without bail. El Paso, Texas police say one person was killed and three others were wounded in a shooting at a shopping mall. Police saying that two suspects are in custody. El Paso Mayor Oscar Leezer says an off duty officer was working at an establishment within the mall. They off d the police officer there was there, you know, did the job and the job that he's trained to do day in and day out. It is the same shopping complex where twenty three people were killed

in twenty nine at a walmart by a gunman. A black Hawk helica here from the Tennessee National Guard crash yesterday in Alabama, killing two crew members. The chopper on a training exercise crash in the community of Harvest along a state highway. Global News twenty four hours a day, powered by more than twenty seven hundred journalist and analysts in over one twenty countries. Michael Barr and this is Bloomberg, Nathan. Thank you, Michael time for the Bloomberg Sports Update Frontier

by Tri State AUTI. Good morning John Stonshower, Good morning Nathan and next at the All Star Break thirty three and twenty seven and impressive seventeen and twelve on the road in Atlanta. They won one oh one, went up by twenty in the first quarter, never looked back. Julius Randall now headed to Sunday's All Star Game in Utah. He scored twenty five points. Jalen Brunson could still be an injury replacement, should find out today. He scored twenty

four other knicks and double figures. Nixon in sixth place in the East. They're a half game ahead of seventh place Miami, who lost in Brooklyn and the Nets one sixteen one o five mckel Bridges, where the Nets just got of the have a durrant trade, obliterated his previous career high. Had never before scored more than thirty four points. Bridges went for forty five. He scored fifteen neck points in a row in the fourth quarter, sixth straight wind

with the Ranger and six four at Vancouver. Para goals were both any piner and and Meeking's advantage at the Yankees acquired Frankie Mantas from Open last a lot, he did not pitch well for the Yanks, and now it appears he will not pitch at all for them. In is Mantas the shoulders surgery. At Texas Rangers spring training, Jacob deGrom already has an injury tightness in his left side. Mets fan likely chuckling about that when de Gram left

the Mets, Justin Verlander joined them. This is actually my first spring training with the brand new team since uh two five. Um, you know, I got train to Houston in the middle of the season, so uh, this is like the first day of new school for me, um, which comes with a lot of opportunity and just getting to meet a lot of guys and them get to know MEMI gets him Verlander a co Mets ace with

fellow veteran that Jersey John Sparsh. I want Bloomberg Sports live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius Examp, a Bloomberg business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar as the Fed continues to tighten and COVID stimulus withers, consumers keep spending on travel. That's the message coming from AIRB and B, which posted

some of its best earnings ever this week. The CEO Brian Chesky sat down with Bloomberg's Emily Chang to talk about the growth and how Airbnb is preparing for a possible economic downturn. Let's listen in to part of that conversation. Now, travels robust, but let's talk about the color. Are you seeing signs of people making trade offs? Ten days turns into seven days, A hundred dollars a night turns into sevent You know, it's funny, Emily. We are not seeing

um any like any like measurable slowdown. What we said in our Q one outlook is we're expecting pretty steady growth. Now we are expecting a little bit more accelerated growth in short term stays, but that's that's more of a recovery. We're seeing more recovery short term stags. We're seeing more people go to cities, and we're seeing more people cross borders, between urban and cross border. That was around eight percent

of our night's book before the pandemic. So it's really more a matter of a recovery of the old ways of traveling and a real sustainability of the new ways, like including people staying longer and traveling to more to places. Dave steveson your CFO said yesterday on the call, this is growth mode now, not necessarily profit maximization mode. When it is growth mode actually look like And there's something kind of interesting that I've learned in Silken Valley. I

think there's this really like simple way of thinking. You're either in growth mode or profitability mode. And what I've learned since the pandemic is as we've gotten more profitable, we also got more efficient. And as we've got more EFFICI shint, we got more focused, we were able to grow faster. So we're gonna continue to do both. But

we are focused on three priorities this year. Number one, we want to perfect the core service, and we are listening out all the different things that people want to be better at BnB and we're trying to systematically fix them one at a time. Then we need when to make sure we have enough host If people are watching on TV, they probably have travel their banb or know someone who has. I want people to say the same thing about hosting. They know somebody who is a host

because it's so mainstream and so popular. And along the way, we're actually laying the foundation for us to extend beyond our core business, and we're thinking about pretty expansive the big ideas. So that's what we mean by growth mode, that we are perfecting the core, making hosted mainstream, and

we're thinking about big ideas. But the cool thing is that we can stay really lean, really disciplined, because I don't think growth and profitabily have to be a major trade off, and I hope that's what the lesson of Airbnb is so long term stays. You mentioned grows Night's book has that plateau. Do you think that's max at this point, Let's think about up from a first principal standpoint, why does that business even exist In the first place.

That business exists because there's a gap between people traveling in a short term basis and people signing one year leases. And that gap has increased as more people have gotten flexible. You know, not everyone works remotely as flexible work of policies, but a lot more people than before the pandemic. We're seeing a lot more people want to travel for summer. We're seeing a lot more people relocating. We're seeing a lot more people that are kind of living different places

month to month. I think this is a very long term trend. I think there was an initial like adoption that was unique in its vertical nature during the pandemic. I think it is normalizing, but over the course of ten years, that's going to keep going up because people are gonna continue to get more flexible. Still, you've got inflation layoffs happening almost everywhere but Airbnb, and I wonder if this catches up, Like, what are you worried about when you see a tough few years ahead for the

global economy. I certainly were about, um, you know our host I mean a lot of them live at or below meeting income and everybody is an incredibly important way for them to make money. And I think therapy be can be a way for more people to become a host. As far as our employees, though, you know, we did make some hard choices, but here's a stat We have five percent fewer employees than before the pandemic and we

have more revenue. So we're extremely disciplined, very focused, for very lean and you know, we basically made a lot of hard decisions and then we never left that discipline. And it was partly because we didn't we knew we were living in a time and certainty, but it's also because we knew that as we got more disciplined in Lean, it actually became a better experience to work here. So I think that you know we're ready for whatever storms ahead.

Let's talk about the storm. We've got fourteen billion dollars in cash a mass. How are you thinking about what to do with that? Is that just a massive rainy day recession fund. I hope it's more than that. We are absolutely going to be looking at growth opportunities to invest in. But one of the lessons I learned from for the pandemic is I remember I had a teacher said, Brian, you can do everything you want in your life, just

not at the same time. And so I want us to be incredibly rigorous, thinking one step in front of the other. But we are absolutely looking at expanding our market, going to some new opportunities. But we're going to continue to be extremely disciplined, and you know, expect us to generate a lot more free cash flew this year as well. This is Bloomberg day Break Today, your morning brief on the story is making news from Wall Street to Washington

and beyond. Look for us on your podcast feed at six am Eastern each morning, on Apple, Spotify, and anywhere else you get your podcasts. You can also listen live each morning, starting at five am Wall Street Time on Bloomberg eleven three oh in New York, Bloomberg in Washington, Bloomberg one oh six one in Boston, and Bloomberg nine six in San Francisco. Our flagship New York station is

also available on your Amazon Alexa devices. Just say Alexa play Bloomberg eleven Plus listen coast to coast on the Bloomberg Business sapp, Sirius XM Channel one nineteen, the I Heart Radio app, and on Bloomberg dot Com. I'm Nathan Hager 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.