Bloomberg Daybreak: April 14, 2022 Hour 2 (Radio)

Plus Texas Governor Greg Abbott the highest pressure from those opposed to his new border policy. By Michael Blarm More Ahead, I'm time Stashoward Sports Ladimer Guerrero's three home runs lift in Toronto over the Yankees the medicine Rangers both one

in Philadelphia. That's all straight ahead on Bloomberg day Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, Francisco, Sirius x M one nineteen and around the world on Bloomberg Radio dot Com and via The Bloomberg Business At Good Morning. I'm Nathan Hagar, and I'm Karen, Moscow and US DOT Index futures are a little change this morning heading into the holiday weekend. We're coming up to six

o one on Wall Street. We check the markets every fifteen minutes throughout the trading day. On Bloomberg. Right now, SNP futures are again little change. Down futures are up thirty one now and as Day future is up twenty one. The decks in Germany is little changed, and your treasury little changed as well. Yea two point six nine percent and they yield on the two year is at two

point three four percent. Nathan, Karen, We'll have one markets in just a minute, but first, the suspected shooter in the Brooklyn subway is set to appear in court today. Bloomberg's Michael Barr joins US Live with the very latest. Good morning, Michael, Good morning, Nathan. The man accused of being the gunman who shot ten people and wounded others in a Brooklyn subway station was arrested in Manhattan yesterday.

Mayor Eric Adams, we got police responded to except that the sixty two year old was ad a McDonald's in Manhattan's East Village. James allegedly fired a nine millimeter glock handgun at least thirty three times in the Manhattan bound in train. James, with addresses in Philadelphia and the Milwaukee area, will make an initial court appearance on terrorism charges in federal court in Brooklyn. U S Attorney Brian Peace, and if convicted, he will face a sentence of up to

life imprisonment. U S Attorney Peace says the government will prove that James traveled across state lines in order to commit the offense in New York. Michael Barb Bloomberg Daybreak, Karen all Right, Michael Barr, thank you while the subway shooting. His prompt questions and how Frank James might be prosecuted in this case. David Schwartz is a former Brooklyn prosecutor and partner at Gertzman Schwartz. Bottom charges will be the

federal terrorism charge, will be attempted murder charges. On the state level. There will be state charges. I believe federal arges the federal case will come first. And former Brooklyn prosecutor David Schwartz spoke with our Washington corresponded Joe Matthew on Bloomberg Sound on Catch the Program weekdays at five pm Eastern on Bloomberg Radio. Right, let's get to the latest on the war in Ukraine. Karen Russia continues to

reposition for new attacks in the east and south. The mayor of Maripol says more than twenty thousand people have been killed in the weeks long siege of his city, and now President Biden has announced eight hundred million dollars in new military aid for Ukraine. Bloomberg's Sad Baxter has the story. The package includes artillery, ammunition, and White House spokeswoman Jensaki says helicopters. It was unclear for a while

um from their side whether they wanted additional helicopters. We have provided them helicopters in the past, uh, And today they make clear they wanted them in so we said, great, They're helicopters in the package. So the new shipment marks a shift toward more offensive weapons. Prior shipments had been defensive systems. In San Francisco, I'm at Baxter Bloomberg Day Break,

All right, and thank you all. Turning to the markets now, bank earnings continue with Oleman Snacks, Morgan, Stanley, City Group, and Wells Fargo all reporting this morning. We get a preview from Bloomberg Shinali Balsac. After JP Morgan reported earnings, it turns out that trading did not fall as much as expected. That should bode well for Goldman Sachs and Morgan Stanley, which have a greater percentage of their earnings

tied to trading businesses. The consumer is also in pretty strong shape, but there are some businesses that are not growing very quickly as rates start to rise. That will be of importance for Wells Fargo as it reports earnings today, and for City Group there will be questions around the Russia exposure and whether the bank has to take losses tied to the country. I'm Shnoli Bassak for Bloomberg day Break.

All right, Shinali, thank you when we get another snapshot this morning on the health of the U s economy with the March reading on retail sales here the preview is Bloomberg's Michael McKee. March was a month of skyrocket and gasoline prices, so dollars collected at service stations should lead the forecast gains, but that may mean less spent on other categories. A Chicago Fed index that tracks retail sales suggests factor of gasoline, autos and March retail sales

may have declined significantly. To get a clearer picture of American spending, will also have to factor out inflation, which is at its highest since nine Given the Fed is expected to raise interest rates aggressively to bring inflation down, some retail strength would reassure policymakers the economy isn't about to go into recession. Michael McKee, Bloomberg Daybreak. Sorry Michael,

thank you well. Please join Mike later this morning on Bloomberg Surveillance when he speaks live with New York Fan President John Williams. It's coming up at forty five am all street time on both Bloomberg Radio and television. Of course, taming inflation is front and center for the Fed. Karen and Treasury Secretary Janet Yellen says the Central Bank does have a tough balancing act ahead, but it can be done. They will um try to maintain strong labor markets while

bringing inflation down. But and it has been done in the past. It's not an impossible combination, but um it will require skill and also good luck. Janet Yellen says she'll convene a meeting of top international financial officials next week to address a global food security crisis stemming from record prices overseas. Nathan, we get a policy decision from

the European Central Bank this morning. Economists say the ECB will almost certainly stand pat They're likely prioritize to fight against inflation of our risk to the economy caused by the war in Ukraine. Meantime, karent inflation may soon have you paying higher prices at Amazon. Joining us here live to explain that. As Bloomberg's rnitda Young, Good morning, Ranita,

Good morning, Nathan. Amazon merchants were already grappling with cost related fee hikes that took effect in January and average five percent, And now Bloomberg News has learned Amazon is adding a five percent fuel and inflation fee on merchants that use its shipping services. That's putting pressure on sellers to raise prices. It's scheduled to kick in on April. Amazon joins a range of companies who've had to take

action to offset rising costs. Airlines are raising ticket prices, Uber and Lift added fuel surcharges and s FedEx and Ups have also raised their prices. Live in New York. I'm gonna need a young Bloomberg day all right, we need to thank you. Bloomberg Daybreak is brought to you by b n Y Melon's Pershing learned why the world's most sophisticated wealth management and institutional firms rely on Pershing to help them improve profitability, create efficiency, attract talent, and

manage risk at pershing dot com. You're listening to Bloomberg Daybreak and it sounds like so seven on Wall Street got some showers in Central Park fifty eight degrees. Let's get more on what we know about the Brooklyn subway suspect and more on what's happening in New York and around the world. Michael bar back with us this morning. Michael,

thank you very much. Nathan. We're learning more about the suspected Brooklyn subway shooter who was arrested yesterday in Manhattan and East Village hardware store manager says he helped Megan happen. Francisco Pebli says he was working at a store when he looked up and saw the suspect. Frank James walked right by. He wasn't like a normal person if he didn't resist anything. He just like staying calm and then Reblood notified police who were down the block, and minutes

later the suspect was in custody. NYPD Chief of Detectives James Essex says James has a record. He's arrest history in New York is nine prior arrests dating from nineteen nine two. Chief Essex also says James was arrested several times in New Jersey. The New York State Health Department says two new O macron sub variants that appear even more transmissible than the highly contagious b A two are

driving an uptick in COVID cases in the state. The department estimates that they have twenty three percent to seven growth advantage over the b A two variant that was itself more infectious than the original omicron variant. And Ohio man who acknowledges he joined the mob at the US Capitol last year and ignored a variety of warning signs, says he was only following orders from the President Donald Trump. The man, thirty eight year old Dustin Byron Thompson, and

testified during its trial in federal court in Washington. Thompson's defense team is the first to argue that Trump and others were responsible for the mob's actions. Traffic between Mexico and the US has been snarled since Texas Governor Greg Abbott ordered commercial trucks undergo extra inspections. Is part of the Republican governor's fight with the Biden administration over immigration.

Texas law enforcement is apprehending the illegal immigrants that got away from the border patrol, including previously convicted murderers, previously convicted child rapists, kidnappers, drug traffickers, MS thirteen gang members, and cartel gang members. Governor Rabbit says the standoff has stoked warnings by trade groups and experts that US grocery shoppers could soon notice shortages on shelves and higher prices.

Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists and analysts more than a hundred, twenty countries. Michael Barr, this is Bloomberg Games, Okay, Michael, thank you. Count up to six ten on Wall Street Time for the Bloomberg Sports Update with John sash Ower A Nathan Yankees beaten by the Blue Jays, more specifically beaten by one Blue Jay Pats leaving off this seat. Dathan Elizaka's first pitches swam?

How did deep Bluff field? That phone is gone? Vladimir Guerrero Jr. With the three Holber game night. He does it in the Bronx Jays Radio the call. He also had a three home run game last season. Two of the home runs, plus the double came against Garrett Cole. Most of it all came after Guerrero cut his hand on a play in the field. Toronto one, six to four. It's early in the season, but a couple of Yankee

concerns too much reliance on the home run. They hit three Anthony Rizzo Aaron Judge in gladbor Tores, but they score only one other run. Also, Kyle Agasha Yoka promoted the starting catcher Isaiah Kiner Felfa brought it into the new shortstop. Together, they are a combined two of thirty five series ends. Tonight, Mets are off. They have their whole opener tomorrow to include the unveiling of the Tom Siever's statue. It will all happen on the seventy fifth

anniversary of Jackie Robinson's debut in Brooklyn. The Mets at up five and two road trip they wanted Philadelphia nine to six. Peter Alonso followed up his Grand Slam the other day with a three run homer. Five RBIs Max sernser Is now two and oh. Also in Philly, Rangers won four and up in twenty eight says for Alex Georgie Copo CaCO scored the first two goals. NBA play in two more wins by the home teams Atlanta by twenty nine, ending Charlotte's season. New Orleans took out San Antonio's.

In tomorrow, HAPs visit Cleveland, Pelicans at the Clippers and the winners advanced John Stash were Bloomberg Scorts, Nathan Okay, John, thank you right now. S and P futures are up one point down, futures up fifty three, Nestex futures are higher by eighteen points. Looking at the tenure, it is down one thirty second with the yield two point seven

zero percent. The yield on the two year right now two point three four percent, and nime X screwed is down one in a quarter percent, down to dollar thirty to a hundred two dollars a barrel. This is Bloomberg, Bloomberg, gay Berg brought to you by Ancient Accountants and Advisor's challenging times call for proactive advisors who help minimize taxes, increased cash phone create opportunities for the future of your business.

Visit Ancient dot com markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktake, This is a Bloomberg business flash. Hey, good morning. I'm Karen Moscow, and we do have headlines crossing the Bloomberg now involving Twitter Elon Musk offering to buy Twitter for fifty four dollars twenty cents a share in cash. This is according to a regulatory filing in a letter to the Chairman of the

board must saying quote Twitter has extraordinary potential. I will unlock it. Twitter shares are up thirteen percent right now in early trading, and we're going to get full details and perspective on this with Gene Monster of Loop Ventures in just moments from now. We're also watching United health Group and raised his forecast for the year as double digit revenue growth and lower operating costs help the healthcare giant beat analysts estimates SMP future is a little change

this morning. Down Future is up sixty one points and nasdack futures that will change. Tenure Treasury down to thirty seconds, l two point seven zero percent, yield on the two year two point three four percent, and NIMEX screwed oil is down one point four percent. Again. Twitter shares up more than well twelve and a half percent in early trading right now, and as a Bloomberg Business flash, now, here's Michael Barr with more on what's going on around

the world. Michael here in the suspect that rested in the Brooklyn subway shooting the left ten people wounded by gunfire. Also, he left behind a trope of angry YouTube videos. Please we're studying them for a possible motive. Frank James vented about racism in America, his struggles with mental illness, New York City's New Air and nine eleven, among other things. In MLB, the Yankees and Orioles, lost, Mets, Nationals, Red Sox A's Giants all one in the NHL, the Rangers.

One Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists, and analysts in more than a hundred twenty countries on Michael bar This is Bloomberg Nian Michael, thank you. It is six nineteen on Wall Street Live from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak with breaking news in the m and A space. Elon Musk is offering to buy Twitter for fifty four dollars in twenty

cents to share. He didn't announce it on the social media platform. He announced it through an SEC filing. Let's get some initial reaction now. Gene Munster joins us live, the co founder of Loop Ventures. Just a couple of headlines crossing on this announcement. Gene Elon Musk, the Tesla and space X CEO, says he does not have confidence in Twitter's management. He says Twitter has extraordinary potential. I will unlock it. Your action. Welcome to the world of

Elon Musk. Once again here unpredictable by design, and I think his approach is to uh think big. He's doing that here. My reaction is that the premium that he's offering is somewhat modest premium. This is a cential where the stock spiked too recently and so um, I think the uh, this is not a slam dunk that it gets done at this price, and probably safe to say

that this is not his final price either. I suspect he's not going to lead with his final price again, just a modest premium to where the stock was yesterday versus and essentially where it was at the peak when it's spiked this week. So look for this to uh, you know, kind of take on some more contours where he may have to raise his bid. And I think the other piece too is that is surprising to me that the piece that he's putting a pusher, bigger push

is not surprising. The one thing that is surprising is that this is a time think, you know, he's really wants to take all of this on here. And I had previously predicted that he wanted to have a bigger role, he wanted to have an influence even after he stepped off of the board. Um. I thought that he just still wanted to have an influence. But this is a much different contour to it, and that part is surprised because there's a capacity question there. Of course, once you

layer in Tesla and SpaceX. Now we're watching the reaction in the Twitter shares in the pre market, they had spiked as much as on the news right now in early trading their up twelve. Of course, Musk on his Twitter feed has thrown a lot of spaghetti on the wall in terms of changes that may be real or imagine that he might like to see, from adding an edit button for tweets to uh. At one point, he floated the idea of turning Twitter's existing headquarters in Silicon

Valley into a homeless shelter. What kind of changes do you think concretely and elon Musk, majority stakeholder Twitter, would look like. I think there are two essential pieces to it. First is that I think he's gonna make it so it's harder for Twitter to manage the content on on on the platform. This is something that is very important, Jim. This is why we are here in the first place. It is his view that Twitter has been punitive to some people and in terms of kind of monitoring what

they're saying. And so I think that that's the first and most obvious change that that would happen. That would definitely happen. I think there's there's a second question about monetization and the growth rate and Twitter has been relatively modest over the past few years. It just it really hasn't grown to this at the same pace of other social platforms obviously, like TikTok or Snapchat. And I think that there's a question we talked about unlocking the value, uh,

that there could be a monetization question. There isn't an obvious one where this has historically not been done in social but just given Eon Musk's first principles approach to everything he does, and the first principles means just because it hasn't been done before doesn't mean you shouldn't try something in the future. And there's the first principles approach that he could take with just essentially just charging people

to be on Twitter. You know, would you pay a month to be a dollar per month for example, to be on Twitter? But I guesses a lot of people would and really kind of stress test to monetization side of it, And so that's probably where the biggest value could be created. Uh, if it is in fact the town square that he describes it as and he's able to actually monetize users for it, I could see it happened about thirty seconds left here Gene Obviously Elon must

can afford to buy out Twitter. Do you think you can see some competition and from other potential hostile takeover candidates. Um, I think less likely that that happens because it's been depressed before, and I don't think there was people circling. I think you're going to see other emin a activity more broadly with this pullback, with a lot of these

you know, a lot of tech stocks are down. Um, Twitter's down a lot, But I don't think it solves in that same category of where it's easy pickings for

a for a bitting more. Thanks for this, Jane. Great to have you on with us as we just got this news breaking minutes ago, Elon Musk making what he calls his best and final offer to buy Twitter, saying it has extraordinary potential and he will unlock it, offering fifty four dollars in twenty cents a share for the social network Twitter in the pre market up nearly eleven and a half percent on the news. Stay with us

for more. Are listening to Bloomberg Daybreak Bloomberg eleven three oh weather showers and storms this afternoon with a high near eighty degrees. Sunshine returns tomorrow upper sixties will stand. They up for sixties Saturday with a few more showers possible.

Right now fifty nine in Central Park, broadcasting live from the Bloomberg Interactive Brokers Studio in New York, Bloomberg Elving Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one, O six one to San Francisco Bloomberg and M sixty to the Country Sirius XM CHO one nineteen and around the globe the Bloomberg Business at and Bloomberg Radio dot com.

This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm Nathan Hagar and I'm Karen Moscow, and we're just about three hours away from the open of US trading. It's time for the five things that you need to notice. Start your day. Bralty you by ib KR Investment Advisers switched to interact your brokers for lowest cost global trading and turnkey custody solutions, no ticket charges at no conflicts

of your interests at ibk R dot com. Slash r I a up first breaking and news involving Twitter and Elon Musk. The Tesla CEO is launching a hostile takeover of the social media company, and Bloomberg's Renada Young joins US Live with its developing story. Good Morning Renda, Good morning Karen. The world's richest man is offering about forty

three billion dollars for Twitter. Elon Musk calls it his best and final offer, and it represents an eighteen percent premium to Twitter's closing price yesterday, and it's thirty seven percent above the price before Musk disclosed a stake in the company. The Tesla CEO announced the offer of fifty four dollars and twenty cents of share in a filing with the SEC. He says Twitter has extraordinary potential and

he will unlock it. Live in New York, I'm gonna need a Young Bloomberg day break a, Renita, thanks for watching shares of Twitter and early trading. Right now they are up about eleven percent. Let's you have to developing story out of New York City now, where police arrested suspected subway shooter Frank James. Mayor Eric Adams released a statement following the arrest. Myself got Mayor Adams isolating after a positive COVID test. City Police Commissioner Keyshawn Sewell also

addressed the arrest. We used every resource at our disposal to gather and process significant evidence that directly links Mr James to the shooting. We were able to shrink his world quickly. There was nowhere left for him to write. Police Commissioners. School says the NYPD worked with many law enforcement partners to make the arrest. Meantime, and Washington naked Nathan,

the focus remains on Ukraine. US President Biden announced eight hundred million dollars in additional US military aid for Ukraine, while Europe continues to provide cash for weapons. It comes as Russia warrants of deploying nuclear weapons in and around the Baltic siege. Now's if Finland and sweet enjoyed NATO the country say they're stepping up considering of doing so as finding continues Russia's repositioning forces for renewed attacks in

the eastern and southern parts of Ukraine. On Wall Street, Cairn for Big Banks release earnings today, Morgan Stanley, Goldman, Sachs City Group, and Wells Fargo all report following yesterday's mixed report from JP Morgan and Futures this morning, they're little changed and the tenure Treasury is up one thirty second deal two point six nine percent. That's the five things you need to know to start your day, Brought to you by Interactive Brokers, Straight Ahead, your latest local headlines,

plus a check of sports. And this is Bloomberg. Karen, Thanks sixty three on Wall Street, fifty nine degrees in Central Park. Let's get more details now on the Brooklyn subway suspect Michael Barr is back with us. Good morning Michael, Good morning Nathan. The suspect arrested in the Brooklyn subway shooting that left ten people wounded by gunfire also left behind a trove of angry YouTube videos. Police were studying

them for possible motive. Frank j seemed to end about nearly everything in his videos, Racism in America, his struggles with mental illness, New York City's new mayor nine eleven, Russia's invasion of Ukraine, and black women. In one, he said, this nation was born in violence. It's kept alive by violence or the threat thereof, and it's going to die a violent death in my bed. Chief of Detectives James Essex says the suspect has been arrested nine times in

New York and has other arrests. He has three arrested New Jersey nine and two thousand and seven. They have for trespass, loscity, and disorderly conduct. Chief Hassex says the gun allegedly used by James was purchased in Ohio in eleven. Two new omicron subvariants that appear even more transmissible than the highly contagious b A two driving an uptick in COVID cases in New York. According to the state's Health department. It is the first reported instance of significant immunity spread

due to the two subvariants. In the US, Texas Governor Greg Abbott continues to devide pressure from those opposed to his new border policy. The extra inspections of commercial trucks coming from Mexico is snarling traffic and leading to warnings that US consumers could face food shortages. Still Abbit says

it's worth it. Texas is apprehending people crossing our border illegally from countries like China, Iran, Russia, Iraq, and more than a hundred and fifty additional countries from across the globe. Republican Governor Rabbit said he would not repeal his new policy at all. Bridges until there are more assurances of security. After a two year hiatus because of COVID, the New York Auto Show returns to Manhattan's Jabbt Center. Opens to

the public tomorrow. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists and anialists more than a hundred twenty countries. How Michael bar this is Bloomberg, nath Michael, thank you. Thirty five On Wall Street. John Stansher has the Bloomberg Sports Update. Nathan Aaron Boone asked to sum up the hitting exploits of Toronto. Slugger of Vladimir Guerrero Jr. Recalled

it otherworldly. One a night for Guerrero. Home run to straightaway center field, the first didn't two run shot in the third, a double in the sixth, all that off Garrett Colan, then a four hundred and forty three foot home run off Jonathan Wisa leading off the eighth, the second three home run game of Guerrero's career. Toronto won six to four Yankees and defeat hit three solo shots. Anthony Rizzo and Aaron Judge went back to back series

of the homestand ending tonight mets her Off. They finished a strong five and two road chip of the nine six win at Philadelphia game where they held on after leading eight to one. Home opener tomorrow versus Arizona, they will unveil the Tom Siebers statue. Clayton Kershaw, missed much of the last season to the injury, made his first start of this season in Minnesota World seven perfect names,

thirteen strikeouts on the eighty pitches. They took him out, six outs from the twenty five perfect game in baseball history, and the Twins broke up the perfect game and no hitter in the Eighthenny. Rangers went for nothing at philadel but shut out for Alex Jorgia. Jos actually were Bloomberg Sports. All right, John, thank you. We're at sixty six on

Wall Street now. Want to get more on the breaking news involving Twitter, Elon Musk offering what he says is his best and final offer to buy out Twitter in a hostile takeover bid, offering fifty four dollars twenty cents per share. Dan Ives is with us this morning. Analysts at Wedbush Securities, who follows Twitter and Tesla too not to mention very closely. Dan, good morning. Your reaction to what we've heard so far from Elon Musk on Twitter? Yeah, look,

this is the game of thrones. Uh. And obviously, once the situation happened with Twitter in the board, you know, and must not joining, you know, this became a hostile bid situation. And look, it was a view that he would increase his steak, he was gonna step it up. He basically went all in. Look at this premium. I mean, it's gonna put the back against the wall. I mean, I think at this point it looks like Musk is likely going to own Twitter. Do you think he sticks

with that premium? Look, and the thing that the premium is it at a point where I just do not see any other bidders. And I think Twitter board never in a million years thought that they'd be in a situation one must actually buys the whole company himself in the filing. That must basically like, okay, this is the final offer, or I I could potentially leave the story and sell my shares. So there's gonna be significant shareholder pressure on Twitter from a fiduciary perspective, And you know,

it really just speaks to Musk didn't you. This is kind of playing around in terms of Twitter as a platform, and and this would be the the really third pillar, you know, along with Cassel in SpaceX in terms of his ecosystem and obviously just a vast ownership. You called this the game of thrones, you mentioned that earlier. How do you think Twitter's management reacts to this hostile takeover

potential bid? Go put out the standard letter that they'll look at the bid in which they have to do, and then likely they'll probably do an active process see if there's any other bidders. I mean, well, they'll they'll go around the world looking for any other bidders besides Musk. But if you look at this premium and what he's going to pay and obviously being richest personal world, and he could do it himself, I mean, I think this is just a matter of time to must go on Twitter.

In the letter, he said that the Twitter will neither survive nor serve it's societal imperative in its current form. He says he does not have confidence in Twitter's management and does and thinks he can't change the public or he doesn't think he can change the company in the public market in our last minute here, Dan, what kind of changes if this bid does go through and Elon must becomes the majority stakeholder, what kind of changes do

you think he will actually make at Twitter? Well, well, the real changes are the monozation, the advertising, the subscriber

growth of the platform. I mean that that's why we're even in this situation as Twitter has fallen back in terms of the social media platform relative to Instagram, TikTok and others, Milk in terms of the freedom of speech and other like That gets into a tight wire act right because that you know, is going to be something that investors want to know how he ultimately strategically is going to change Twitter and right now need to be There's more questions and answers, but all investors are focused

on our four numbers five for twenty first stock that was in the threes. Yeah, and right now in the pre market, Twitter's trading at that's a surge of twelve point seven percent from yesterday's close. Dan, i'ves wet Bush Securities as always great to get your thoughts as we continue tracking the breaking news. Elon Musk with a hostile takeover bid for Twitter. As Dan mentioned, fifty four dollars twenty cents to Shery. Elon Musk says that's his final offer.

Stay with us. Much more to come as Bloomberg Daybreak continues. This is Bloomberg Bloomberg eleven three O. Weather showers and storms this afternoon with a high in your eighty degrees Sunday Tomorrow upper sixties and will stay in the upper sixties Saturday with a few more showers possible right now mostly cloudy fifty nine degrees in Central Park. Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, l Bloomberg Business apt and at Bloomberg Quick TAKEE.

He's a Bloomberg Business Flash. Hi, good morning, I'm caring mostyow. This update is brought to you by b n Y Mellon's Perishing Learned by the world most sophisticated. Both management and institutional firms rely on Pershing to help them improve profitability, create efficiency, attract talent, manage risk at Pershing dot Calm. And we are getting news as we said we've been following.

Elon Musko has made the best and final offer to buy Twitter, saying the company has extraordinary potential and he will unlock it. He is offering twenty cents a share in cash, and we spoke to Dana Ives about this deal. Put out the standard letter that they'll look at the bid in which they have to do, and then likely they'll probably do an active process see if there's any other bidders. I mean, well, they'll they'll go around the world looking for any of their bidders besides the Musk.

But if you look at this premium and what he's going to pay, and obviously being rich personal world, he could do it himself. I mean, I think this is just a matter of time till till musco on Twitter and as Dan Ives have wed Bush Securities, Twitter shares at eleven and a half percent this morning. Also, we have some headlines crossing the Bloomberg. Earnings from Wells Fargo

first quarter revenue missing analysts estimates. And let's go to the first word breaking news desk Now for today's morning call. Here's Bill Maloney, Bill, good morning, Hey, good morning, Karen. Us futures are somewhat quiet despite that elon Musk news doubt futures of fifty one points. Estimees are down three when Nestack futures dropped by ten views a ten year the two point seven percent, Gold is down eight oil trading lower, and bitcoin is down by point four percent.

Japan rose one point two percent overnight, while Europan markets are posting modest games this morning. And back in the US on the economic front, Any thirty retail sales and initial jobs claims at ten o'clock, business inventories, and Michigan sentiment regarding earnings this morning, look for City Group, Golman Sacks Morgan Stanley to report also in the pre market. In other news, Google Facebook price targets were cut, with

MKM cautious on online ads wrapping things up. Delta Airlines was raised to overweight over at Barklay's Live from the first breaking news that scom Bill malo care. All right, Bill, thank you to hear live breaking news overre Bloomberg type squawk on your terminal, s qu A w u K and that's a Bloomberg business flash. Now here's Michael Barr

with more on what's going on around the world. Michael Karen, the suspect and Tuesday shooting at a Brooklyn subway station, is expected to appear before a judge later this morning. Frank James was arrest of the day after allegedly opened fire inside a subway car injuring at least twenty three people. In MLB, the Yankees and Orioles lost, the Mets, National's Red Sox Athletics and Giants one in the NHL, the

Rangers one. Global news twenty four hours a day on here and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts and more than a hundred twenty countries. On Michael bar This is Bloomberg. Nahiight, Michael, thank you. We are live from the Bloomberg Interactive Broker Studios, where it's coming up to six fifty on Wall Street.

Timed owt to check what's going on in d C, where some of the top stories include President Biden announcing new heavy weapons heading to Ukraine as the country faces new offensives from Russia, Treasury Secretary yell In warning China of potential fallout over its ties to Moscow, and the White House blasting Texas as inspections snarled traffic from Mexico. Let's get more and now live from the International Monetary Fund headquarters, where we find Bloomberg Washington, correspondent Amory Hord

during this morning. Amory, before we get to some of those stories, I wonder if we've gotten any White House reaction at this point to the arrest in the Brooklyn subway shooting. Not quite yet, But what we did hear from the President of the course of the week and White off officials that they've been working in lockstep with the local officials on the ground in New York as of course the FBI as well of involved. But the President is going to be traveling today, he'll be out

in about the country. He's going to North Carolina, and I imagine we will get some reaction from the president. This is something to press is certainly going to ask him. Yeah, certainly. Well, we have heard from the President so far, as I mentioned, is this announcement of what eight hundred million dollars in new military aid to Ukraine on top of the billions

that have already been promised in the war. What kind of firepower we talking about here, and Marie, so this will include artillery, helicopters, ammunition, u unmanned surface vessels of coastal defense, humby switchblade drones and also and I think this really shows where the United States is potentially concerned about where the conflict might lead. Next, there's sending individual chemical biological protective suits and detective systems for these types

of chemical warfare. So it's really a huge package, and it's going through presidential authority. So it's a quick draw down of US stocks and supplies to Ukraine and some of these weapons, as you can tell in the name, they signal really a more significant military commitment, but also

um the military equipment. The beginning was very defensive. You do see this moving to a little bit more offensive our last minute here, and Marie, we've heard some pretty strong words from Treasury Secretary Yelling ahead of the meeting

of global financial chiefs in Washington next week. Yes, she blasted China for practices that quote unfairly damage the national security interests of others, And she really talked about even though she said she didn't want the evolution of a quote bipolar global system, she really talked about the fact that China needs to recognize that if it wants the international community to a bide by their sovereignty, they also need to do the same. So really a stark warning

coming from the Treasury Secretary specifically aimed at China. I would say, all right, thanks as always for joining us. Bloomberg Washington correspondent and Marie Hordern with us from the I m F this morning. Read more at Bloomberg dot com or on the Bloomberg terminal. Listen to Bloomberg Radio in Washington at Bloomberg one and one oh five point seven FM HD two. We're coming up to six fifty three on Wall Street, and we are getting earnings this morning.

Crossing the Bloomberg Terminal from Wells Fargo as the parade of big Wall Street bank earnings continues, skill live to Bloomberg Intelligence Senior financial analyst Alison Williams for more details on some of these headlines that we are seeing from Wells Fargo this morning, not the least of which Allison first quarter revenue coming in shy of analyst estimates. It did, and I haven't you know, I'm still going through UM the release, so I'm not sure exactly where the short

pall was. I would say that the couple of things UM that I've focused on so far, actually it looks like the net interest income is a little light, so that that's a negative, because that's obviously one of the things that analysts are looking for UM increasingly to help the company. But the two things that I'm focusing on are are where we got the short falls yesterday with JP Morgan, and that's the provision and the capital ratio.

On the provision side for Wells, it looks like they had a net reserve release UM, so that's we'll want to hear more about that. But one thing I would point out is that Wells Fargo was much UM still much more reserved versus the other banks coming into this quarter. So while UH, JP Morgan, Bank America City Group had taken the reserve sort of back to UM levels at the start of the pandemic, well still had a pretty

big buffer. A lot of that really relates to their commercial real estate exposure UM, and that might be UM why they are still letting a little bit of reserves go versus kind of going the other way, which is what we saw JP Morgan. The capital ratio though, does look light, coming in at about ten and a half percent, And so for the banks short term rates higher, that's

a great thing. Long term rates higher, they have to mark down UM the value of securities UM, and that sort of runs through their capital ratio, and we knew that was something that banks was gonna go We're going to take a hit on this quarter, but it does look like that might be coming in a little bit worse than expected. It's a it's an accounting thing. It does reverse over time, but it can lead to lower

repurchases in the near term and that's the negative. Only about thirty seconds left here, Alison, we've gotten some commentary from the CEO Wells Fargo saying the war in Ukraine adds additional risk to the downside. What could that tell us as far as the other banks reporting later on this morning. It's something we're watching across all the banks. Um. That is the reason why, or one of the reasons why we saw the bigger reserve at JP Morgan Wells Fargo,

as you know, is much more domestically focused. So what they're referring to I think are really the knock on effects. Um. So again, their reserve looks like they had a release. We want to hear a little bit more about what are the economic scenarios that they're factoring in. How is this impacting their underwriting and their loan growth. Thanks for this,

Alison Williams of Bloomberg Intelligence. As we continue watching Wells Fargo earnings headlines across the Bloomberg terminally in the pre market, Wells Fargo shares now Karen are down three and a half percent. All right, Nathan, thank you well. At six fifty six on Wall Street, and we turned to news and science and Technology now with a Bloomberg and j

I T. Stem report. It is Ronzi you buy New Jersey Institute of Technology, ranked a top fifty national public university by US News and World Report and at top ten for best career placement among public schools by the Princeton Review. More at and j I T. Dot E d U and now here's US making news and science, Technology, Engineering, and math. And China President Shi Jin Ping says his government will stick toward zero tolerance approach to the coronavirus.

That's despite public anger and mounting economic costs. She spoke the same day that Shanghai reported a record of almost twenty eight thousand new cass The city's twenty five million residents have been locked down for several weeks. The lockdowns in China are having an impact here. Shoppers will face longer wait times to buy Apple's MacBook pro laptops. US consumers trying to order the latest high end models are

now seeing delivery estimates pushed into June. Number of companies that assemble mac books and China have halted production because of the lockdowns. And Toyota is recalling about four d sixty thousand vehicles in the US to fix a software problem that can inadvertently disable the electronic stability control system. The automakers says that when the vehicles are restarted, the software and rare cases may not automatically switch the system into the on mode and that can disable the system.

And that's a Bloomberg and j I T Stem report. We continue to watch shares of Twitter this morning up more than eleven percent after Elon Musk made a best and final offer to buy the company, and straight ahead it is a Bloomberg surveillance. Tom Keene and Lisa Abramowitz at the I m F this morning for Nathan Hankar on Karen Moscow, and this is Bloomberg