From the Bloomberg Interactive Brokers Studios. This is Bloomberg day Break for Tuesday, April twenty fifth.
Coming up today, UBS shares drop following its earnings report.
We speak with CEO Sergio or Madi.
First Republic Banks quarterly results, Jar Investors.
House Speaker Kevin McCarthy moves ahead with his debt ceiling plan without changes.
And Joe Biden's twenty twenty four presidential campaign could launch as early as today.
The US hopes a seventy two hour ceasefire in Sudan holds, plus a New York subway fair hike has been postponed for now. I'm Michael Barb. We'll explain why. Straight ahead.
I'm Don stansh Aaron's Fords, the Devil's Bait, the Rangers to tie up the series, a loss for the Yankees, and the Jets have acquired Aaron Rodgers.
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 app, and everywhere you get your podcasts.
Good morning, I'm Nathan Hager.
And I'm Karen Moscow. Here are the stories we're following today.
We begin with breaking news President Biden has officially launched his bid for reelection. The eighty year old president just released a video message asking voters to let him quote finish this job. The president says there's still work to do to give Americans a fair shot and to beat back what he calls extremists in the Republican Party who want to cut government spending and curb abortion rights. President Biden's already the oldest person ever elected to the nation's
highest office. If he were re elected, he'd be eighty six at the end of a second term. His kickoff message shows the president's betting voters will reward him for his decades of experience and look past any concerns about his age.
Well.
Nathan will have much more on the Biden announcement in a few minutes when we speak live with PANGEA policy founder Terry Haynes. But now let's turn to the markets, and specifically the banking industry. Shares of UBS. They're down one and a quarter percent this morning. The bank missing profit estimates as it set aside hundred and sixty five million dollars for litigation, tied to its role in selling
mortgage securities before the financial crisis. The bank also said it attracted inflows worth twenty eight billion dollars in the months running up to its takeover of Credit Suite. We spoke with UBS CEO Sergio Ermadi.
We were very pleased with the fact that at times of distress in the market generally the first quarter was very challenging, we still sew clients looking at UBS as a safe haven, and the influence were coming in from all regions and from different sources. In that sense, we are very pleased that, particularly also after the announcement of the transaction of the acquisition of Pretty Swis, we still saw influence coming into our bank, so a sign of confidence of our clients.
Sergio Ormadi made the comments to Bloomberg's Menace Krenny.
Well back here in the US, Karen First Republic shares are plunging more than twenty percent following its latest learning support. We Get the Latest live with Bloomberg's John Tucker John Nathan.
First Republic saw deposits collapse apps. At the same time, they avoid a disaster by tapping into emergency lifelines. That means they didn't have to take a hit selling their portfolio of securities, and there was also this from the CEO, Mike Roffler on a conference call.
We are pursuing strategic options to expedite our progress while reinforcing our capital position.
Well, they've considered a sale of the entire bank, but there's sizeable losses on paper which would have to be crystallized in most deals have caused some buyers to bulk. The bank also will cut a quarter of its workforce, lower outstanding loan balances, and slash non essential activities lined in New yorkom John Tucker, Bloomberg.
Debreak Right, John, Thanks well. The earnings will continue to roll in today with more than forty companies in the S and P five hundred reporting, One of the big ones comes after the bell We get a Microsoft preview from Bloomberg's Jeff Bellinger.
All further slow down in sales of personal computers could be evident in Microsoft's results and Bloomberg Intelligence, as weak infrastructure software demand may have had an impact on the company's Azure cloud business as well as on premise sales. BI notes the software giant has aggressively marketed artificial intelligence enhancements, while new features are not expected to have contributed to
sizable growth in near term sales. Microsoft is likely to indicate increased interest from advertisers in its enhanced search capabilities. Jeff Bellinger, Bloomberg day Break.
Jeff, thanks, We now turn to the decision by Fox News to break off ties with one of its most popular hosts, Tucker Carlsen. While it remains to be seen how that affects viewership, it definitely impacted investors. Fox's stock lost more than a half billion dollars in market camp yesterday. Keita Ranganathan is a media analyst at Bloomberg Intelligence.
Fox News is the major is a crown jewelryly of the full Fox Empire. It brings in seventy five percent of the company to profit. It is the most watched cable network in the US, has been now for about ten years running. And a huge part of that think they owe to their anchors and especially the popularity of Tucker Calson.
So this is this.
Is huge Bloomberg Ski Toarngga.
Nathan says.
Carlson's departure comes just days after Fox agreed to pay seven and eighty seven million dollars to settle a defamation lawsuit.
Well, Nathan, Now let's get to the latest on the debt ceiling debate. In Washington, House Speaker Kevin McCarthy is moving ahead with his one and a half trillion dollar proposal as is, despite demands for changes from some of his rank and file. Scott Carr has more from our Bloomberg ninety nine to one newsroom in Washington.
Speaker McCarthy has said he plans to put his debt ceiling proposal up for a vote on the House floor this week as is, while people familiar toell Bloomberg. It'll also be placed under a rule disallowing any amendments. McCarthy's proposal would increase the nation's debt ceiling by one and a half trillion dollars, holding off a US payment's default until March of next year at the latest, and it aims to trim four and a half trillion dollars in
discretionary spending over ten years. McCarthy acknowledges there's still a number of republic Can hold outs demanding changes in the bill, but he can't afford to lose many as few as five Republicans opposing it, Combined with what's expected to be a unified democratic opposition would defeat the bill. Scott car Bloomberg Daybreak.
All right, Scott, thank you for having earnings crossing the Bloomberg right now looking at UPS first quarter profit meeting analysts estimates, and it looks like revenue just missed, and it sees the revenue for the fiscal year coming at the low end of ninety seven billion dollars to ninety nine point four billion, and that would be right around what analysts we're looking for. Also hearing from PEPSI will have more on those in just a moment, and this is Bloomberg.
Thanks Karen.
At six oh seven on Wall Street, it's forty six degrees in New York. It'll be probably mostly sunny today behind your sixty back down to the upper forties tonight under mostly clear sky, and Michael barrs here with more on what is going on in New York and around the world.
Michael, thank you very much.
Nathan. It's official. President. Joe Biden formally announced that he would seek reelection in twenty twenty four, and the video released a few minutes ago, Biden implored voters to let him finish this job he began when he took office and put aside any worries about his age. He said there is still work to do to give Americans a fair shot. Biden would be eighty six at the end of a second term if he wins. Jerry's selection is
scheduled to begin today. In the civil trial stemming from a lawsuit filed by writer E Jene Carroll against former President Donald Trump, Carrol says Trump raped her in a New York City department store in the mid nineteen nineties. Business and entertainment attorney Trey Levell says jerors may hear that infamous Access Hollywood video of Trump, and says the allegations from Carroll are not unlike others he's faced.
There's a fair amount of evidence out there of Trump doing this similar thing to other people. We have these other two women who say he basically is almost the exact same scenario. He approached him, assaulted them, and they may fun of them out afterwards.
Trump has denied her allegations. The US announced Sudan's two warring factions had agreed to a three day cease fire. The US is watching over convoys helping to ferry out American citizens still there. National Security Advisor Jake Salivan.
For those Americans who are interested in joining a convoy, we have been providing information about how they can do that, and then, as I mentioned before, we are now providing some degree of overwatch to try and ensure that these convoys can arrive safely.
The US already evacuated American embassy diplomats. President Biden and Vice President Harris met at the White House with the Tennessee State House Democratic lawmakers who faced expulsion votes earlier this month organized by the Republican majority. They took over the podium on the House floor to chant with protesters demanding gun reform. Representative Justin Pearson it is.
A moral issue. It is about our children. It is about our schools and not turning them into war zones. But also and it is also about communities that are experiencing gun violence every single day, like the communities where I am from, and a lot of other communities.
And anticipated five and a half percent fair hike on New York City subways, buses, and commuter rail lines is delayed until July or August as the state's overdue budget is holding up new changes. Global News twenty four hours a day, powered by more than twenty seven hundred journalists and analysts in over one hundred and twenty countries. Michae Lamarn, this is Bloomberg, Nathan.
Thanks Michael. Almost six ' ten on Wall Street. Time for the Bloomberg Sports Update. Here's John stan Shower, Nathan.
It was in two thousand and eight that the Green Bay Packers made way for a new quarterback. Aaron Rodgers took over, so Brett Fare joined the Jets. Now the Packers are again turning to a young QB Jordan Love and Rogers is a Jet that Trade finally agreed to five weeks after Rogers admitted he planned to come to New York. He was, of course number twelve in Green Bay. That was Joe NAMA's number will remain retired. Rogers as a Jet will where number eight that was his number in college.
Devils and Rangers both good.
Road teams in the regular season, and four games into their playoff series, the road teams are four and oh. At the Garden, Devils won three to one, the series tied to two. Toronto hasn't won a playoff series since two thousand and four. Maple Leaves came from three goals down in the third period, beat Tampa Bay in overtime, leastly the series three to one. Couple of NBA playoff thrillers. First, Miami down fourteen in the fourth quarter, rallied to beat Milwaukee.
Jimmy Butler scored fifty six points. That's tied for the fourth most NBA playoff history. The Bucks, who had the NBA's best record, now need to win three in a row to avoid being the fifth to one seed to lose to an eighth seed. The Lakers, seeded seventh in the West, beat Memphis in overtime. Lebron James twenty two points twenty rebounds in The Lakers have a.
Three to one series lead.
Yankee bats again quiet on a chilly night in Minnesota. They lost six to one. They've scored only six runs in their last four games. They've also lost six straight series openers. Tampa Bay beat Houston the Razor twenty and three. They're fourteen and oh at home. I went Baltimore both ones, so the Yankees are in fourth place. The Master back home tonight to play Washington Johns Dash Award.
Bloomberg Sports.
Live from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Siriusxam of Bloomberg Business Appen Bloomberg dot com.
This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Let's get back to the breaking news. Moments ago, President Biden did make it official he is running for reelection in twenty twenty four. The President made the announcement in this video that went online just minutes ago.
Let's finish this job.
I know we can't because this is the United States are There's nothing, simply nothing we cannot do every day.
Together, President Biden's video announcement making it official he is running in twenty twenty four. Let's bringing Terry Haynes, founder of Pangaea Policy, as we parse the message and look ahead to this race.
Terry, good morning.
What do you make of this sort of soft launch for this re election campaign?
Good morning, Nathan. Pretty soon it'll be like it was in the nineteenth century, where you never even have to leave your your front porch in order to run for president. So here we are again. A couple of points. Firstly, kind of on the on the polls and enthusiasm levels, there's little to no enthusiasm for Biden within even within his own party, there's a very short bench, no real challengers. They've made up their minds to to to back him
for one more time. Even without that, you've got a situation where there's not a lot of enthusiasm for Biden nationally. You know, I think it's underappreciated that polls or polls, and I don't put too much weight on them. But in six presidential national polls last Friday, four with Biden as the Democrat, too with Harris as the Democrat, only one of those did the Democrat wins the Wall Street Journal poll. All of them are very tight, but only
one one. And you're gonna you're going to see a situation where, uh, you know, they're betting the farm essentially that they're going to run against Trump again and win. I'm not at all sure that's true, because you've got a situation where six out of ten Republicans don't want Trump. So I'll start there.
Let's go to your first point, Terry, how does the president close that enthusiasm gap?
Well, there's a lot of uh, there's a lot of issues in which they're hoping, you know, social and otherwise, to to pick away at independence and keep them on side. And I'm going to preface by saying quickly that independents
aren't who you think they are. There's a lot of talk that independents are forty percent of the electorate and you know they're they're this big blob that we need to all, you know, go after somehow, when in reality, the vast majority of independence that used to be with a party, Democrat or Republicans tend to still lean in
those directions. So what they're trying to do with social issues like abortion, geopolitical issues like China and Ukraine is trying to appeal to people that used to be Democrats essentially to keep them on side and provide the winning margin. And I think that's a lot of what's going on here.
So your second point about the president potentially betting the farm on a Trump Biden rematch, why do you think that's not a possibility at this point, given that the former president still has so much enthusiasm, especially around his base, and at least at this point, it seems as though any potential GOP primary challengers are having difficulty breaking past that.
Well.
I see, I see the race on the Republican side as a little non consensus right now. If you look at the polls generally, what you see is whether they be national polls or whether they even be polls in early primary states, what you see is about four out of ten want Trump. What that tells you is about six out of ten don't. Unlike twenty sixteen, what you have is a situation where there's already coalescing around around
one alternative DESANDUS. But there's a lot of people in the race, so you know, there's a lot of folks that the still are in the single digits. That's a different scenario to twenty sixteen. And what I'm anticipating is that there's still this hard nugget of support for Trump, certainly, but that the main challenger probably ends up coalescing others coalescing the Trump opposition.
If you will, only about thirty seconds left here, Terry. The age factor is going to be a factor for President Biden in this reelection campaign.
How does he get past that?
That's a difficult question for them because part of their strategy is to ration him out as much as possible. They'll show him as energetic and selected public appearances and that's about it. But I think his problem goes beyond age. There's not a lot of domestic not a lot of domestic achievement, and in the international situation is very unsettled, and so he doesn't have a lot of domestic or international achievement too. Point two.
This is Bloomberg day Break Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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I'm Nathan Hager and I'm Karen Moscow.
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