From the Bloomberg INTERACTI Burgers Studios. This is Bloomberg day Break for Tuesday, April eighteenth.
Coming up today, Big bank earnings continue with Goldman Sachs and Bank of America reporting.
The Group of Seven Nations vow to support Ukraine for as long as it takes.
Elon Musk says he wants to take on Microsoft and Google in artificial intelligence.
And Tim Cook opens Apple's first store in India.
Trial begins on the Fox News Dominion voting machine case. Plus a secret illegal police station in Chinatown has been shut down. I'm Michael Varn. We'll explain straight ahead.
I'm John Stash, Aaron Sports Met's beat. The Dodgers playoff losses for the Nets and Islanders. The Knicks play the Calves tonight. The Rangers play the Devilment.
That's all straight ahead on Bloomberg day Break, The Business news you need to starn your day in just one fifteen minute podcast each morning on Apples, Spotify, The Bloomberg Business Appen everywhere you get your podcasts.
Good morning, I'm Nathan.
Hager and I'm Karen Moscow. Here are the stories we're following today.
Let's begin with earnings. This morning too. Of the biggest banks on Wall Street report today, and we get a preview from Bloomberg's Shanali Bassic.
We'll wait diar from Bank of America to c if it'll increase its expectations for net interest income this year. Remember a massive rival, JP Morgan already increased their expectation for lending revenue by billions of dollars. We'll also hear from Goldman Sachs. And at Goldman they have one of the biggest fixed income houses on Wall Street. JP Morgan and City Group already posted jumps in that business that were bigger than Wall Street expected. We'll also here from
BNY Mellon and Western Alliance Bank. The big story this week will be how regional banks and other big financial services firms are being impacted by the rise in interest rates.
Bloomberg Shinali Basic says, look for Bank of America's earnings at six forty five am Wall Street time. Goldman Sachs reports at seven thirty.
Well, turning to the global economy now, Nathan, we got a surprise in the UK. Overnight growth unexpectedly accelerated, with average earnings rising six point six percent in the three months through February. That was quicker than the six point two percent pace that was expected. Bloombergy's a senior UK economist, Dan Hansen says the data is now sending a clear message to the Bank of England.
This tips the balance sorts them hiking in May. This is such a big surprise relative to our forecast, and we think relative to their forecasts. I think even if you do get a slow down in inflation tomorrow from ten point four percent, we're expecting nine point eight percent, it's obviously still extremely high relative to a two percent target.
And Bloombergy's senior UK economist Dan Hanson notes the NEXTBOE meeting comes on May eleventh.
The economic data are also in focus in Asia. Karen China's economy grew four and a half percent in the first quarter. That's the fastest pace in a year, but the monthly data for March came in mixed and Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong.
Some strong data here and some that's disappointing. GDP expanding four point five percent from a year earlier was a surprise, higher than the estimate of four percent retail sales jumping ten point six percent in March from a year ago, and that was stronger than the estimate of seven point five percent. However, industrial output rising just three point nine percent, weaker than forecast, and fixed asset investment also lower than expected.
Bloomberg Economics says consumption is set to remain strong this year and that may just be the jewel of this big set of data. In Hong Kong, Brian Curtis Bloomberg Daybreak.
Right, Brian thanks Well. Geopolitics is in focus in Japan today. The Group of Seven Nations vound to support Ukraine for as long as it takes in its fight against Russia, while also calling for greater engagement which China. Bloomberg's Amy Morris has details from our ninety nine to one newsroom in Washington.
The Block condemned Russia's war against Ukraine, reiterated support for Ukraine's peace plan, and slammed Russia's irresponsible nuclear rhetoric. The G seven ministers also said they recognized the importance of engaging candidly with China and the need to work together on common interests, while calling for a peaceful resolution of Taiwan related issues.
Now.
The language on China was softened as the group tries to project unity after Emmanuel Macrone's recent trip to Beijing, when the French leader said the European Union should avoid being dragged into a dispute with China by the US. In Washington, I Maymy Moore as Bloomberg Daybreak.
Amy, Thanks. We have an update this morning on the latest mission from SpaceX. The company says it'll try again to launch its massive starship on Thursday. Bloomberg's Ed Baxter reports.
The crew says it's using the malfunction valve that scuttled yesterday's launch as a valuable learning experience.
We're learning things today about the integrated tasks that are going to set us up for success in a future attempt.
As they tested mechanisms down to a hold of T minus forty seconds. This is the rocket that Musk feels will ultimately get people to Mars, but this is the first attempt to even get it into outer space. So Elon Musk said that four twenty is his favorite day of the year, and there it is in San Francisco. I'm at Baxter Bloomberg Gay Break Europe.
All right, and thank you well. Space isn't the only thing on Elon Musk's mind today. He's also talking about plans to get into artificial intelligence that Tesla on Twitter. CEO says he wants to create a third option to rival Microsoft's Open AI and Alphabet's Deep Mind.
I'm going to thought something which you call truth GBT or a maximum truth seeking AI that tries to understand the nature of the universe.
In an interview with Tucker Carlson on Fox News, Elon Musk says bots like chat GPT are too politically correct. He says a truth seeking AI, as he puts it, would be less likely to annihilate humans.
Well, Karen another tech CEOs in the spotlight this morning. Tim Cook has officially opened Apple's first company owned store in India, and we get the details live from Bloomberg's John Tucker, John and Nathan.
Tim Cook beamed took selfies and hug customers at the new Apple store in Mumbai. He's got good reason to smile. India is the world's second biggest mobile market with one point four billion potential customers. Oh, it's been years in the works because Apples had to jump through a lot of hoops. They had to meet regulators demands, including sourcing
some of the products locally. Right now, only four percent of India's smartphone users have iPhones, and even with that penetration, iPhone sales in the last twelve months, we're almost six billion dollars live in New York I, John Tucker, Bloomberg Daybreak.
All right, John, thank you. And Apple is also banking on another way to make money. It's teaming up with Goldman Sachs to offer a high yield savings account.
It's fifty degrees in New York. It's going to be breezy and continued cool today with highs in the upper fifties. We get down to around forty five tonight under a probably to mostly cloudy skinnes And now it's time to take a look at some of the other stories.
Making news in New York and around the world with Bloomberg s. Michel bar Good morning, Michael, Good morning, Nathan. Federal authorities say two men were arrested for operating an illegal secret police station on behalf of the Chinese government in Manhattan. Authorities rate at the so called station on East Broadway in Chinatown. Official say more than three dozen members of China's National police also faced charges accusing them of creating and using fake social media accounts to locate
and harass dissidents. In the US, a twenty year old woman was shot and killed in upstate New York over the weekend after the car she was pulled in to the wrong driveway. She says that police say that Caitlin Gillis was with three people headed to a friend's house when they ended up at the wrong house in Hebron, Washington County. Sheriff Jeff Murphy.
While they were leaving the residents, once they determined that they're at the wrong house, a subject came out on his Porsch for whatever reason and fired two shots, one of which struck the vehicle that Kaylin was in.
Sheriff Murphy says the homeowner, sixty five year old Kevin Monahan, is in Today. President Joe Biden spoke with sixteen year old Ralph Yarrel, the black teenager who was shouting wounded last week after mistakenly ringing the wrong doorbell. Prosecutors in Clay County, Missouri charged Andrew Lester, the eighty four year old of White, Kansas City homeowner who allegedly shot Yarrow.
The NYPD says the last of three suspects wanted in the drugging deaths of at least two people that's been arrested. Thirty five year old Jaquan Hamilton faces charges. Police say they had linked dozens of druggings, including seven fatal overdoses, to robberies around nightclubs in Manhattan. Jury selection is expected to begin this morning in the one point six billion dollar defamation case between Fox News and Dominion Voting Systems.
The start of the trial was delayed yesterday after talk of a possible last minute settlement, but now it is set to begin. Secretary of State Anthony B. Lincoln's as Americans were caught up in the violence in Sudan.
We had an American diplomatic convoy that was fired on. All of our people are safe and unharmed. But this action was reckless, it was irresponsible and of course unsafe.
Secretary Blinkin says, it's believe the attack came from rapid support for us as who were battling the Sudanese military. Global News twenty four hours a day, powered by more than twenty seven hundred journalist manaalist and over one hundred twenty countries. I'm Michael Barr.
This is Bloomberg, Nathan, Michael, thanks time now for the Bloomberg Sports Update.
For that, we welcome John Stenshower.
All right, thanks Nathan.
It's the first time since nineteen ninety four all five New York Area NBA NHL teams are in the playoffs.
That includes the Nets and Islanders.
They both lost on the road, and Net's had a ten point lead at Philadelphia. Sixers switched to a zone defense, Nets held only fourteen points to the third quarter. Philly won ninety six eighty four tyres MAXI thirty three points. Cam Johnson led Brooklyn with twenty eight and the Sixers lead the series to nothing. Sacramento again beat Golden State. Kings are up to nothing next, looking to go up
to ZIP. Tonight in Cleveland, Islanders lost Carolina two to one, a game that was scoreless for the last thirty seven minutes. Bruins beat Florida overtime wins for Minnesota and LA. Rangers and Devils begin their series tonight in Newark's seventh time they've met in the postseason, the most memorable being the epic series in nineteen ninety four.
Rangers coach drug Glant.
I know we're playing the team that I see is pretty competitive, and this year we can go either way. They're a real good hockey team. I think we're real good hockey team. We match up real well from what I see, So I don't worry about all the experience and expectations and my job to get our team to play the best weekend and hopefully will be.
Last time the Devils won a series was twenty twelve when they beat the Rangers.
Fifth straight win for the Mets. They won a back and forth game in LA.
Eight to six over the Dodgers branded MLPEE Alonzo Jeff McNeil all with three hits. Daniel Vogo back at two on ome A, a familiar script for ex Mets ace Jacob de Grom, now with Texas four hitless innings and then he left with a wrist injury. Jalen Hurts cash get on his breakout season, the Eagles quarterback, now the highest paid player of.
The NFL, making fifth one million a year. John S Dafiell are Bloomberg.
Sports Live from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on siriusxam the Bloomberg Business Appen Bloomberg dot com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. It is a morning with bank earnings back in focus. We're going to be looking for more clues about the impact of the regional bank turmoil in a little less than two hours, actually, when Bank of America and Goldman Sachs come out next with their first quarter results.
Let's get a preview now. We're joined by Charlie Wells, finance reporter for Bloomberg News. Charlie, it's good to speak with you this morning. Of course, we already saw that nice jump in net interest income from the three banks that reported last Friday. Any reason to think things are going to be any different for the next two coming up?
Good question.
I mean the stakes certainly are high, just a few weeks after some of the most dramatic news in the banking industries since the financial crisis, and we really are getting sort of two different banks reporting today that sort of represent different themes in the industry. So with Goldman, you know, really heavily focused on investment banking, the theme over the past year really has been a slow down in IPO activity and mergers and acquisitions. The expectation is
that will continue. There also will be a focus on Goldman's need to cut expenses. So before all of the regional bank crises happened last month, really there was this focus on that one billion dollar cost cutting plan at Goldman, So any movement that they could make could bode well for the bank. Finally, thinking about trading, so the end of the last quarter had some volatility, which could help
trading groups at Goldman. Now if you pivot to Bank of America, you get a very different bank, right, Nathan. It goes back to some of those banks that reported last week, more similar to JP Morgan, where we did see that good news about net interest income. We actually did see some good news about deposit inflows, even an uptick at JP Morgan. So Bank of America has a pre high bar to follow their Yeah, I would have to say so.
I mean, you will have to think that Bank of America could benefit pretty substantially from some of those depositor inflows given its pretty strong focus on the consumer side of the banking business.
That's a really good point and one of the points that analysts have been making over the past few weeks has just been about the fact that size for these big banks really seems to have mattered over the tumultuous few weeks when depositors really were concerned about the health and safety of banks. You know, whether or not those concerns were founded, we certainly have seen movements to some
of the larger banks. So JP morgan I mentioned they actually saw an optic of one point six percent in deposits, and that, funnily enough, bucks a trend that we've been seeing over the past year, which was the movement of deposits to higher yielding accounts, to higher yielding vehicles, to money market funds, to treasuries, even to Series one savings bonds, which we have written about so many times. It had happened so popular with consumers. So you know, there could
be a surprise with Bank of America. Actually it may not be as good on the deposit front as some expect, and that is certainly a concern, and of course they have, you know, some stiff competition. Now.
Yeah, there is a lot of attention now on these high yielding accounts. I mean, we just saw that story yesterday with Goldman Sex getting ready to report here and coming in with this partnership with Apple, of all places offering a high yield savings account, are we in a place where we're looking at kind of an arms race when it comes to trying to attract customers with higher interest rates, not just with the banks but with FinTechs.
You know that Apple disclosure may be an opening salvo in an arms race. Four point one five percent for a savings account there that is certainly going to put pressure on other banks. That figure four point one five
percent is ten times the national average. And this was a concern that a lot of re regional banks had that some of these megabanks would start pushing up the amount that they could give to depositors, which would push the deposits at those regional banks to come under pressure, potentially lose deposits or actually or lose some of that net interest income. Now, what we saw last week with some of the megabanks was less of an upward pressure
than some may have feared. We'll see what happens with Thank America, because, as you say, they do have so many consumer deposits, they may be feeling pressure there. But I do I would have to agree with you. I think this is the beginning of a new era that we don't necessarily know how it will end, because it's been a while since we've been in such a high
rate environment. Also, the last time we were in a similar environment, there was not social media, there was not the ability to transfer money quite as quickly as it can be transferred now. So this could bring some surprises.
Only about thirty seconds left here, Charlie. But if we start to see this race continue, what could it mean for margins for some of these banks, If they're competing to raise deposit ray, what could that mean for their profits?
It could certainly put them under pressure. And deposits are so important for banks, and they've in a lot of ways been taken for granted. You know, they're effectively some of the cheapest funding that they can gap for other activities. And if those start to go, you know that deposit beta will shift and they'll potentially have to pay more to depositors or risk flight. And as we've seen, it's easier and easier to take flight of that capital these days.
This is Bloomberg Daybreak Today, your morning brief on the stories 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 to zero in New York, Bloomberg ninety nine to one in Washington, Bloomberg one oh six y one in Boston, and Bloomberg ninety sixty in San Francisco.
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Plus listen coast to coast on the Bloomberg Business app, serious XM Channel one nineteen, the iHeartRadio 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