Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
We are now just hours away from a strike that could do serious damage to the US economy. The United Autoworkers and Detroit's three top automakers have till midnight tonight to agree on new labor contracts. Union president Sean Fain says they're making progress with four General Motors and Stillantis, but are still far apart on key issues.
From job security to ending tears, from cost to living allowance to wage increases. We do not yet have offers on the table that reflect a sacrifice and contributions are members have made to these companies.
Speaking on a Facebook and YouTube live stream, the UAW, Sean Fain says if they don't reach a deal in time, the workers will begin to strike at targeted locations. Meanwhile, Ford CEO Jim Farley spoke at a Mustang event at the Detroit Auto Show, saying he still thinks a deal can get done.
Still optimistic that we'll get a deal, but there is a limit and because we have to protect for the future future investments and the profitability the company funds those.
Ford CEO Jim Farley says the union hasn't made a serious counteroffer to any of his company's proposals.
Well, Nathan, we have another event that's impacting consumers this morning.
A huge hack of casinos.
Caesar's and MGM have been hacked by the same group within several weeks of each other. Bloomberg's Ed Baxter has this story from San Francisco.
Caesar's Entertainment is expected to disclose details of the hack of its system soon, but Bloomberg sources say it looks to be tens of millions of dollars. The group behind the attack and the one on the MGM are attributed to a group known as Scattered Spider or UNC three nine four four. The Caesars hack first hit an outside vendor before gaining access to the company's network. Members of the group are believed to be young adults, some as young as nineteen years of age, residing in the US
and the UK. Hacking gangs typically asked to be paid in crypto. I'm at Baxter, Bloomberg Radio.
And thanks turning the market. Shares of ARM begin trading later this morning on the Nasdaq. The chip designer, backed by SoftBank, price It's IPO at fifty one dollars per share, the top end of the range. Bloomberg's Julia Fioretti says ARM is valued head close to fifty five billion.
It's still a hugely important deal for the IPO market globally. Almost a lot of people are looking at It is obviously a test also of the AI boom that we've seen, which has been powering this rally in the market. So a lot is riding on this offering.
Bloomberg's Julia Fioretti says the IPO is the world's biggest this year.
Well Nathan tech tycoons gathered at a closed door Senate meeting to shape how artificial intelligence is regulated. The meeting was organized by Senate Majority leader Chuck Schumer. It included CEOs of Alphabet, Microsoft, Meta Platforms, and Elon Musk. The Tesla and X CEO talked with the reporters after the meeting.
The reason that I've been so AI safety in advance of sort of anything terrible happening is that I think the consequences of AI going wrong are sphere, so we have to be proactive rather than reactive.
I Meanwhile, Musk has agreed to try to settle claims by thousands of former Twitter employees who say they were cheated out of severance pay. That's according to a memo from a lawyer for the workers seen by Bloomberg News. The X, the company formerly known as Twitter, has been accused in multiple suits of numerous labor and workplace violations, including failing to pay severance to thousands who were fired late last year after Musk's forty four billion dollar acquisition.
Well, Nathan, we have plenty of financial news to get you caught up on this morning. Bloomberg News has learned Goldman's sax As fire transaction banking executives, including the head of the business, over compliance lapses, and.
City Group is preparing for a wave of job cuts. The CEO, Jane Fraser's looking to restructure the Wall Street giant. The firm will now operate five main businesses and eliminate the three regional chiefs who oversaw operations in about one hundred sixty countries. Jane Fraser says the shakeup will have a big impact on the business.
The changes are the most consequential changes to how City will be organized and run that we've made in almost twenty years, and What this move enables me to do is not only flatten the organization, but it also enables me to be much more directly involved in making sure that those businesses are performing.
City Group CEO Jane Fraser spoke at the Barclays Global Financial Services Conference.
Well, we now take you to Europe, Nathan, where the ECB is in focus. A central bank and it's president, Christine Leguard make an interest rate decision this morning, and Bloomberg's U and parties in London with a preview. Good morning you and.
Good morning Karen, Nathan. It's a cliffhanger decision day for the European Central Bank. Economists in Bloomberg survey are split down the middle as to whether the twenty countries in the euro Area will get a tenth straight rateich or a pause. Traders are leading toward a twenty five basis point increase. They're pricing in a roughly two in three chance that the ECB hawks win.
The day.
Will find out how this story ends at seven to fifteen am New York time in London. I'm you and Potspin Beckradia you and thank you.
And as global central banks try to manage inflation, Ray Dalyo says bonds are no longer a good long term buy. The Bridgewater founder says he currently prefers cash.
It's not just the supply demand, isn't just the amount of new bonds.
It's the issue of do you choose to sell the bonds.
I personally believe that the bonds longer term are not a good investment.
Ray Dalyo spoke at the Milken Institute Asia's summit in Singapore.
All Right, Nathan, thank you, and it's time now for a look at some of the other stories making news around the world. For that, we're joined by Bloomberg's John Tucker. John, Good morning, Kay.
Good morning Karen. Hurricane Lee has barreled north toward New England. It's threatening to unleash violent storms of the region. This comes just as communities in Massachusetts and Rhode Island, where you're dealing with warnings and another day of heavy rain that opened up sinkholes and brought devastating flooding to several communities. The National Hurricane Center issued a hurricane watch for portions
of Maine. Tropical storm watch was issued for a large area of coastal New England from parts of Rhode Island to Stonington, Maine, including Block Island, Martha's Vineyard, and Nantucket. The two week long nightmare for residents in southeast Pennsylvania's come to an end after an escaped convicted murder Donald Callavacenti,
was finally apprehended yesterday. Cavalcenty tried to get away as officers moved in, crawling at her thick underbrush with a loaded rifle, but a Customs and Border Control team released a canine named Yoda to capture him.
The dogs subdued him and team members from both of those teams immediately moved in.
And that's George bivens Or the Pennsylvania State Police. For the first time in days, Schools in businesses in the area will reopen. Florida, Gavin around de Santa says it was unlikely Republican front runner' Donald Trump could win the White House if he's convicted in his criminal trials.
I think the.
Chance of getting elected president after being convicted of a felony is as close to zero as you can get.
DeSantis was interviewed on the CBS Evening News with Nora O'Donnell. The US and Iran are said to exchange prisoners as early as Monday. This is an agreement that's seen as the first step toward fresh talks to reimpose limits on the country's nuclear program. The deal which also saw the US allow Ran to access six billion dollars in funds that were frozen. It's already open. President Biden up to criticism that he's encouraging more hostage taking and shouldn't be
doing any sort of deal with the regime. Global News twenty four hours day. We're powered by more than twenty seven hundred journalists and analysts in more than one hundred and twenty countries. I'm John Tecker. This is Bloomberg Karen.
All right, John, thank you. It's time now for the Bloomberg Sports Update. And here's John Stashower, John Karen.
The first team to clincher spot in the baseball postseason, a team that has now been there sixth straight years.
Ready with her two to two Here it comes, got him swinging strike three and the Braves are National League's champions for the sixth year in a row.
What an amazing era.
We're in the Midstone as it has been a six year run of dominance in the East and the Braves can celebrate right here in Philadelphia on the Phillies home fields.
Six eighty am. The fan had the call Braves beating the Phillies four to one. The Braves are ninety six and fifty and Spencer Streider is seventeen and five. He got the win in the clinching victory. Nationals lost in Pittsburgh seven to six. The Orioles, shut out at home by the Cardinals, won to nothing and lost ground to Tampa Bay, who won its game. Red Sox reigned out with the Yankees at Fenway Park doubleheader today. Giants at ten in in win over Cleveland six to five. They
were down five to one and the second even. They tie the game out of JD. Davis three wing homer the eighth Anny. The A's lost in Houston six to two and a big win for the Texas Rangers. They suddenly won five in a row. I'm Jordan Montgomery and three home runs. They won ten to nothing at Toronto. Week two in the NFL begins tonight with Minnesota at Philadelphia, two NFC Division winners. Last year that the Vikings lost their first playoff game, and the Eagles, of course made
it to the Super Bowl. They're without a couple of players tonight injured can have gained well, the running back and cornerback James Bradberry John Stash. That were Bloomberg.
Sports from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias, XAM, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.
Good morning.
I'm Nathan Hager, and we are counting down to a couple of key events that could have ripple effects for markets. Midnight tonight is when an auto workers strike could begin in Detroit, and at the opening bell this morning, British chip designer Armhold Holdings makes its US debut on the Nasdaq in Wall Street's biggest IPO of the year. Covering it all for US is Bloomberg's Critty Gupta and Critties with me now, Critty, good morning. Start with the strike deadline.
We did hear from the United Autoworkers president last night and the CEO of Ford as well. Where do things stand in the negotiations.
Yeah, it's looking like it's going to be kind of that eleventh hour deadline or basically that you're going to say, because look, we are literally counting down less than twenty four hours before the contract that, by the way, is a multi year contract completely expires. We're not making much progress, Nathan, And that's really the concern for a lot of carmakers around the world actually, and not just in the States as well, because of course this is going to specifically
impact the auto workers that are in Detroit. The Big three or four GM and Stalant is representing about one hundred and fifty thousand people. But ultimately, look what it does to the other car makers around the world. Mercedes Benz for example, being very very vocal about this, saying, look, this is going to have industry wide ramifications. And Nathan,
the logic here is very simple. If you don't have these union workers, if they are striking one hundred and fifty thousand, suddenly the price of labor for those who are not in the union goes up significantly, not just for the Big Three, but for all the car makers. And that's going to ultimately feed into consumer prices. And that's a thing at a time when a lot of carmakers are really having a hard time selling their cars.
Now we've talked about the potential damage that this could do to the US economy, the idea that Michigan could even enter a recession if this strike lasts for just a few days. Are we seeing any give from either the union or the automakers on their offers.
We saw a little bit of give from the union.
They did lower their pay demand from about forty percent, but it's going from about forty six percent to about thirty six percent when you kind of compound it for a lot of the other benefits that they have. But keep this in mind, at the end of the day, they are basically trying to use the same playbook that UPS had used. The problem is this is not UPS and Teamsters. It's a very different industry with a lot
more workers available that UPS had. The ramifications are small or relative to UPS, but obviously still quite a big deal.
So right now it.
Looks like the union is kind of on the defensive. You aren't seeing a ton of give from the carmakers at the moment. For GMS, delants all united in that front. But look, anything can happen.
Before the strike deadline. We're waiting for ARM Holding's debut on the Nasdaq. Looks like SoftBank, the company's owner is getting pretty much what it wanted from the IPO.
Yeah, they're about to make a pretty penny out of this entire deal. But I got to say, we've really got to watch the valuations here because what's significant is that initially, when this IPO was first marketed, it was the expectation was about sixty to seventy billion dollars is what the IPO would be. That is coming down to about four point eighty seven billion. We'll call it five billion dollars to be generous here. The questioning around that valuation.
The initial thought is, well, perhaps that means that the arm demand isn't as strong, even though now you are, of course seeing orders about ten times subscribed. According to Bloomberg reporting on the flip side, note that this is kind of what happens with IPOs when you look at the banking process here, it is very normal for bankers to underprice the IPO so that when it actually debuts the price skyrockets. The question is does it stay there
at the end of the day. You've seen this with a lot of major tech IPOs Airbnb, door Dash among others, and ultimately when and so happening is in that process and a few months later, the stock ends up dropping pretty significantly. A lot of folks are saying, this is not like every other tech ipo, but there's there's the pattern for you and Nathan.
In the time we have left, we got to talk about this hack that affected the casino industry. More than one company now apparently dealing with the same cyber attack from the same group.
And a little bit of a scary one.
Nathan that the name of the group behind both attacks is Scattered Spider, otherwise known as u NC three nine four four. According to the people, basically, it's a group of social engineers that are trying to gain access to fairly large corporate networks, and to your point, very successfully. Caesars Entertainment MGM resorts are just some to the point that Caesars Entertainment had to pay tens of millions of dollars to the hackers. MGN as well had to pay
a pretty significant amount. Now, of course, this is something that we've been talking about. There have been worries about cybersecurity, not just for the casinos.
In the States, but around the world.
Remember, a lot of these casino makers have or casino sorry owners have massive presences in Macau among other places as well, and cybersecurity has been something that they and their Earnings calls have been spending a lot of money on. What's interesting here is that usually when you look at hackings, they're asking to be paid in cryptocurrency, specifically if it's ransom. Sometimes they'll use things like locking up computer files, they'll
do asking for decryption keys. There's a lot of different ways this goes. This seems to be a very specific type of hack and of course putting a lot of the community on edge.
This is Bloomberg day Break Today morning brief on the stories making news from Wall Street to Washington and beyond.
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