Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
We begin with the latest developments in the Middle East. President Biden is warning Israel that any invasion of the southern Gaza city of Rafa would cross a red line. In an interview with MSNBC, the President criticized the high death toll in Gaza.
There's red lines that if he crosses in the cannot have thirty thousand.
More Palestinians dead as a consequence of going up.
There's other ways to deal to get to to deal with with.
The trauma caused by Hamas.
The President Biden had helped for a breakthrough in cease fire talks before Ramadan, which began last night, but negotiations have stalled.
Well, Nathan, Israel has said that barring a total surrender by Hamas, it has to launch an assault on Rafa because it's the last Bashi of the around Back group began. More on Israel's likely response to President Biden's warning from Bloomberg Stewart living Stone Wallace.
Nathan, he does have a long track record as largely ignoring US presidents when it doesn't suit him. And I think in this instance, what he's trying to balance up is the goal that he sets for the country after the events locked over the Servant, which was, we need to destroy the Hamas leadership. And the only conceivable way he can do that is to go into Raffa, because
you know that's where many of them still are. If he doesn't go into Raffa, then you know, basically hasn't fulfilled the pledge that he made after the attack on Israel.
Bloomberg, Stewart Livingstone Wallace said Hamas is believed to be holding about one hundred and thirty Israeli hostages. A Hamas official and an interview with Bloomberg claimed dozens have been killed by Israeli fire.
Turning back home to the nation's capital, Karen. Later today, President Biden sends Congress his budget request for the next fiscal year. That's his lawmakers race to finish work on their remaining government funding bills for this year man avoid a shutdown at the end of next week. US Beinoriti leader Hakim Jeffries is putting pressure on Speaker Mike Johnson to act on ninety five billion dollars installed aids Ukraine, Israel, and Taiwan.
The reason why it's not happening is because there's a pro potent faction in the Republican Party led by Donald Trump and Tucker Carlson, who are blocking this legislation, and that's shameful.
Democratic Leader Hakim Jeffries was on CBS's Face the Nation Heard Sundays on Bloomberg Radio while he releases his budget, President Biden will be in Manchester, New Hampshire today to talk about lowering costs for families. It's part of a tour of battleground states this week following his State of the Union address.
Well, turning to the economy now Nathan. This week, the bond market faces its own Super Tuesday of sorts the release of the Consumer Price Index. It's fresh inflation data that investors will use to predict when the Fed will start cutting interest rates. Former Treasury Secretary Larry Summer says there is potential for surprises.
Market used to be expecting six cuts in twenty twenty four. Now the markets expecting three cuts, and the Fed's carried that off skillfully. There hasn't been much disruption or dislocation as that change has taken place, but I think that's going to be there with us.
And Larry Summers added that there's an increasing chance that policymakers don't end up lowering their benchmark rate this year. You can hear Summer's full comments on the Bloomberg Wall Street Week podcast, available on Apple, Spotify and anywhere else you get your podcasts.
Well.
Now the latest on the equity markets, Karen, Futures are lower as we begin a new trading week, but look at bitcoin. It is on the rise once again, topping seventy one thousand dollars for the first time. Checking Bitcoin right now, it's trading at seventy one thousand, two hundred. We're also seeing crypto stocks rise on the news. Coen based Global is up more than five percent in early trading. Micro Strategy is up more than seven percent.
Well in company news, nathany social media platform or Reddit is closing in on one of the biggest initial public offerings so far this year. We get the details from Bloomberg's Doug Krisner.
It would be one of the biggest IPOs so far this year. We are told Reddit is planning to sell twenty two million shares. They would be priced between thirty one and thirty four dollars each. Earlier, Bloomberg reported Reddit was targeting evaluation of as much as six and a half billion dollars. We're also told Reddit is setting aside nearly one point eight million shares to be bought by
users and moderators who created accounts before January first. Those shares would not be subject to a lock up period, and that means the owners can sell them on the first day of trading in New York. I'm Doug Prisoner, Bloomberg Radio.
Okay, Doug, thank you.
Now.
There could be a bad omen for Apple, and it's coming from Warren Buffett. More on that in this report from Bloomberg's John Tucker.
And Nate Warren Buffett's Birshire Hathaway sold just over one percent of its holdings in Apple last quarter. When Berkshire last sold these stock between twenty nineteen and twenty twenty, that's selling persisted for several quarters. Apple stock has been hit hard by a drumbeat of negative news, including a two billion dollar anti trust fine, slumping sales in China, and the scrapping of a decade long car project. I
spend ten billion dollars on that car project. Apple saw iPhone sales in China dropped twenty four percent of the first six weeks of this year and lost its title of China's best selling smartphonemaker. Analyst revenue outlook for this quarter and next is pretty grim. Berkshire Hathaway sold ten million apples heares equivalent to about one point six to nine billion dollars in the final quarter of twenty twenty three. Apple hasn't participated in this year's stock rally since at
the start of the year. It's down eleven percent. John Tucker, Bloomberg Radio.
All right, John, thanks, so we'll we have another note on Apple this morning. The company is preparing to open its eighth store in Shanghai this month. The move adds to its largest retail network after the United States. At a time, iPhone sales and are slowing.
Now.
If you think you missed out on the massive rally in the so called Magnificent seven stocks, there may still be time. Strategists did JP Morgan Chase say those stocks, which include Nvidia, Microsoft, and Amazon, are cheaper compared to the rest of the equity market than they were five years ago. Given their latest set of earnings. JP Morgan says it still favors growth over value stocks.
Now Nathan to news in the airline industry and more trouble for Boeing. Delta CEO says the airline now expects deliveries of its Boeing seven thirty seven Max ten aircraft could be pushed out to as late as twenty twenty seven. Delta has orders for one hundred Max ten planes and options to purchase thirty more, and was expecting to receive
them as soon as next year. The potential delay comes as Boeing faces more federal safety and criminal reviews after a series of incidents, including the blowout of a fuselage section during an Alaska Airline's flight in January. And it's time now for a look at some of the other stories making news in New York and around the world. And for that we're joined by Bloomberg's Michael Barr Michael, Good Morning, Good Morning.
Karen Oppenheimer was crown Best Picture at the ninety six Academy Awards. Christopher Nolan also took home Best Director honors for Oppenheimer.
Movies are just a little bit over one hundred years old. I mean, imagine being there one hundred years into painting or theater. We don't know where this incredible journey is going from here, but to know that you think that I'm a meaningful part of it means the world to me.
The most closely watched contest of the Academy Awards, aired on ABC, went to Emma Stone, who won Best Actress for her performance as Bella Baxter in Poor Things. It's about a team that came together to make something greater than the sum of its parts, and.
That is the best part about making movies.
Killian Murphy also won his first Oscar named Best Actor. Robert Downey Junior won Best Supporting Actor at the Academy Awards, notching his first Oscar. Divine Joy Randolph took home Best Supporting Actress Hunters for her role in The Holdovers. Meanwhile, protest over Israel's war in Gaza snarl traffic around the Academy Awards. It slows the celebrities arrival at the Red carpet. Threats to the US pos by China, Russia, Iran, North
Korea will be in the spotlight. Later today at a Senate hearing, the Intelligence Committee will hear from the heads of the CIA FBI, National Security Agency, Defense Intelligence Agency, and the State Department's Bureau of Intelligence and Research. Lawmakers are expected to question the officials about key world threats, including increasing aggression from Russia, instability in the Middle East,
and the looming challenge from China. Democratic Senator Bob Menendez and his co defendants will appear in a federal court today. The senator from New Jersey is facing a new superseding indictment and more charges brought by federal prosecut in the Southern District of New York. Added new charges for the senator his wife alleged co conspirators include conspiracy to obstruct justice and obstruction of justice. The accuse Medendez of working
to benefit Cutter. Along with Egypt, heavy rain has brought flooding to parts of the northeast. In Essex County, New Jersey along the Basaic River, A number of residents in Fairfield have already moved their cars to higher ground in anticipation of the water level continuing to swell. Yards are already submerged, especially those along the Basaic. One resident says FEMA raised her house to a second level seventeen years ago, so now she feels safe.
They elevated me way above the base flood level, like a foot above.
I'm self contained upstairs.
It's wonderful.
I fish you off the deck.
I grilled my food, and I don't have to go to work for a few days.
It's a good excuse.
Today's strong wind guests will hit the Tri State area of at least fifty miles an hour. Global news twenty four hours a day, and whenever you want it with Bloomberg News. Now, Lebarn, this is Bloomberg Camry.
All right, Michael, thank you, and it's time now for the Bloomberg Sports Update, brought to you by Tri State Audi. For that we bring in John stash Hour. John, good morning, Good morning, Karen.
To say the NIXT struggle to score would be quite the understatement. Only fifteen points in the first quarter. The second quarter was better. They scored sixteen. They finished with seventy three. If you had scored an NBA game this season at the Guard in Philadelphia, won an ugly one seventy nine seventy three. Nick shot only thirty three percent, had nineteen turnovers. Their coach is Tom Thibodeau.
Thought our defense was good. I thought the rebounding was good. Enough, you know, and then they made a couple shots at you know, late in the third start to fourth, but we fought, got back, they had a chance at the end and we had, you know, a couple turnovers that hurt us.
There.
The same two teams right back at the Garden tomorrow. The Knicks still sits fourth in the East, but just barely. They led to Orlando by a half game, won Indiana by a game and a half. In Miami by two. The Pacers beat the Magic the Heat We're upset, lost at home to the Wizards. Good win for the Nets one twenty to one. On one on Cleveland. Mckel Bridges scored twenty five in La Anthony Davis scored twenty seven. He had twenty five rebounds, seven steals, five assists, and
three blocks, and the Lakers win over Minnesota. Islanders stay hot one through six in a row, six to one. At Edmonton. NFL free agency kicks off Wednesday, there's word that Russell Wilson will sign a one year deal with the Pittsburgh Steelers. They drafted Kenny Pickett in the first round two years ago. He seemed to regress in his second season. Another QB baker Mayfield staying with Tampa Bay. A year ago he signed with the Bucks for four million.
This deal is for one hundred million over three years. Half of that guaranteed. The Patriots will reportedly trade QB mac Jones to the Jaguars. He's a Jacksonville, Nada. Scottie Scheffler shot sixty six, pulled away won the Palmer Golf at Bay Hill by five strokes. John Stasheward Bloomberg Sports Nathan Okay, John, Thanks, want to turn right back to
the market. Gets you set for the trading week ahead, at a time when gold and bitcoiner trading at record highs, while futures are pulling back a bit as we wait key inflation data later on this week. Joining us now is Dennis Gartman, the chairman of the University of Akron Indowment Investment Committee and the former publisher of the Gartment Letter. It's a pretty interesting time in the market here, Dennis, with some of these inflation headges trading at all time highs.
We saw that big swing and Invidia stock to end the week. How do you read that swing to the downside now for Nvidia, I.
Pay attention to the charts. Fundamentally, you want to understand why something is working. Then you want to understand why the technicals are how the technicals are functioning. And one of the most important technical circumstances that can prevail is what's known as a reversal day. When you make a new high trade to new highs on volume and then break below the previous days low and close below the
previous days low. When you have an outside reversal day, that's important, and outside reversal week is even more important. But you had an outside reversal day after just euphoria in Nvidia on Friday, and I think that that can mark a very important top in that stock. It's the first time I've talked about that for a while, but we had an outside reversal day in Nvidia, and you had weakness across the board and most of the other high tech stocks on Friday following what happened to Nvidia.
So I think you have to pay attention to the fact that so many people had bought into that stock in the course of the past two or three or four weeks and now find themselves trapped in a rather uncomfortable positions. So I think Friday was an important technical circumstance for Nvidia and for the stock market generally.
Now on the other side of the coin, we did hear from a JP Morgan Chase strategist saying that the Magnificent seven stocks, which include Nvidia, could have more room to run, that they're cheaper compared to the rest of the market because of their latest set of earnings.
What did that.
Timeshelters whether that is a viable alternative or not a viable outlook or not. I think that that probably is a little misbegotten or shall prove to be misbegotten. And of course the next two or three weeks I pay attention to reversal days, and that was the first reversal we've seen in quite some period of time in Nvidia and and a high tech stock. So I think that that outlook will prove to be incorrect over time. Time shall tell.
Now we have yet to see a reversal when it comes to not just gold but bitcoin. I mean, the move that we're seeing in the digital currency is just breathtaking right now. I know you've been skeptical of bitcoin in the past. What is your read on this now?
I remain skeptical of bitcoin, but let's be blunt. I have been wrong. I'm too old to be involved in bitcoin. It's a young person's trade, to be blunt. I much prefer being an owner of gold as an inflation hedge, as a geopolitical risk hedge. And I congratulate those people who have listened to and followed, and played with and invested. I put the word invested in quotation marks concerning bitcoin. But congratulations to those people who have invested in bitcoin.
They they have been proven correct. It's a generational circumstance rather than a fundamental circumstance. But I do understand why they have. It has risen because of scarcity values and the having, as they call it, will be taking place, I guess later this month or early next month, which slows the creation of bitcoin. And that's the that's the one fundamental that does make some sense. There is a finite, a very distinct, finite amount of bitcoin that can be created,
and soon that that amount will be finalized. So unlike debt here in the United States, which can go on and grow exorbitantly and exponentially, the amount of bitcoin that will be created is a finite circumstance. I still will be skeptical of it, and congratulations to those people who have done the job and been involved, but I shall not be.
This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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Listen coast to coast on the Bloomberg Business app, SERIUSXM, 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.