Bloomberg Daybreak: April 28, 2022 - Hour 1 (Radio)

the US is not in the pandemic phase. I'm Michael blarn More Ahead, I'm John Stay Sharon Sports fit straight win for the Yankees, the Mets lost as the benches empty in the NFL draft, agins tonight. That's all training ahead on Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius XAM one nineteen and around the world Old on Bloomberg Radio dot Com and

via The Bloomberg Business. Good Morning, I'm Nathan Hagar and I'm Karen Moscow, and futures this morning are higher. SNP futures up seventy five points down futures have three hundred eighty five and Naztec futures have three hundred twenty three. Ten year treasury up to thirty seconds, you have two point eight two percent and a yield on the two

year two point five eight percent. And I make screwed oil is up eight ten percent or eighty five cents at a hundred two dollars eighty five cents and barrel Nathan Karen, we are seeing a two and a half percent lift and Nastac futures this morning. It comes after Facebook parent Metas earnings shares are up almost eighteen percent after Facebook's main social network added more users than projected. Company says revenue would have been higher if not for

the war in Ukraine. Man Deep Singh is senior technology analysts for Bloomberg Intelligence. The core of Facebook and Instagram engagement seems to be holding up quite well, so I think these are are definitely good numbers. They missed on the top line, but we know it's because of the ad pricing, and I think that was sort of expectant Bloomberg Intelligence senior analyst Mandieve Singh says Facebook added thirty

one million new daily active users in the recent quarter. Well, Nathan, let's look at some other stocks on the move following earnings. Your poor shares a qual calm Or up more than seven percent. The chipmaker gave a strong sales forecast with the current quarter. Ford beat earnings estimates and reaffirmed its

guidence for the year. That stocks out more than two percent, And the biggest loser this morning is Telenoc Health shares are plunging more than thirty five percent, the telemedicine company cutting its revenue and earnings guidance for the year, and the earnings continue to roll in today, Karen, With big tech once again leading the way. After the bell, we hear from Apple and Amazon, and we get a preview

now from Bloomberg's Tom Busby. Well investors will see if Apple saw continued growth and sales of iPhones, iPads, max and services despite supply chain problems and chip shortages. Forecast call for earnings per share of one dollar forty three cents on revenue of just over ninety four billion dollars. Apple also expected to announce a share buyback program of

as much as ninety billion dollars. As for Amazon investors, we'll see if it's Amazon Web Services, the cloud computing unit will off set and expected slow down and online sales now that many pandemic restrictions have been lifted. Forecast call for earnings per share of eight fifty five on revenues of more than a hundred sixteen billion. I'm Tom Busby, Bloomberg Daybreak. All right, Tom, thank you. Well. It's also a busy day for earnings in Europe, with seventy companies reporting.

Shares a barclayser up almost two percent, fixed income, currency and commodities revenue jump, thirty seven percent of the British bank. Shares of Standard Chartered are soaring thcent. Earnings topped estimates and the lender raised its revenue outlook. And it's also a big day on the economic front, Karen, we get a closely watched reading on first quarter GDP this morning.

The forecast is for a one percent gain. Bloomberg's Michael McKee has details COVID and Russia's war slowed growth dramatically in the first three months of the year. Some analysts even fake the economy contracted, but a dismal GDP figure will mask some true strength. Consumers spending is forecast to be strong, and business investment appears to be holding up.

Real estate was a strong point during the quarter. The impact on growth is likely largely to have come from a slower pace of inventory building as companies finally restocked. Higher oil prices play a role as well. Michael McKee Bloomberg Daybreak, All right, Michael, thank you, But higher inflation as taking a toll on the personal finances of many Americans, and it's also heading their outlook. We get the latest line from Bloomberg's Randy A Young. Good morning Randia, Good

morning Karen. A gallop pole shows less than half of Americans rate their financial situation as good or excellent, and some forty eight percent say it's worsening. That's a similar level seen a month into the pandemic and during the financial crisis of twenty eight So what's driving to worry? The survey finds that a record thirty two percent of Americans rank inflation and a high cost of living as

the most important financial problem facing their family today. Live in New York, I'm renned a Young Bloomberg Day break all right, Nita, thank you. Let's turn to some moves in Asia now. Overnight, the Japanese yen hit a two decade low against the dollar. The move comes after the Bank of Japan doubled down on bond purchases. The central Bank said it would buy an unlimited amount of bonds that fixed rates every business day and checking the end right now it is at one thirty point nine five

against the dollar. Well, now, Nathan will look at the latest on the war in Ukraine. President Biden plans to deliver remarks later today on support for Ukraine as his administration looks as end Congress a proposal for weapons that Bloomberg said Baxter has that story. The White House says it could go to the Hill as early as today. Spokeswoman Jansaki says they're still working on the final ast.

You don't have a number for you at this point in time, but there is plans for this to be a proposal to go through the fiscal year, and it will include um as our path packages have included security or military assistance, humanitarian economic assistance, which seems to suggest a large number. The President has promised delivery by the end of the week. In San Francisco. I'm at Baxtter

Bloomberg day Break. All right, ed, thanks Meantime, in Europe, several countries are looking for clearer guidance from the EU on Russia's demand to pay for natural gas in rubles. Russia cut the taps to Poland and Bulgaria yesterday because they refused to pay in the currency, and now The Financial Times reports several European nations, including Germany, are preparing to open ruble accounts to meet Vladimir Putin's demands. This

all adds to a volatile energy market. According to Patrick Dehan, head of petroleum analysis at gas Buddy, there's a lot in said about Russia and Ukraine and now Russia today escalating the situation by UH stifling the flow of natural gas to Poland and Bulgaria. And of course we have a global economy that's been rebounding. Patrick de Han with gas Buddy spoke with our Washington correspondent Joe Matthew on Bloomberg Sound On. You can catch the show weekdays at

five pm Eastern on Bloomberg Radio. Right now, SMP futures are up seventy five point STOUT future is up three nastack future is up three twenty five points. That's a game of two and a half percent ten. Your treasury is up to thirty seconds. The yield two two and the yield on the two year right now two point five eight percent. Straight ahead, your latest local headlines and

a check of sports. This is Bloomberg in sound five oh seven on Wall Street where a forty one degrees in Central Park dealing with a truck accident on Route one and nine towards Route four forty in Jersey City. Details kind of in traffic. First, Michael Bars here with more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. New York's MTA plans to ramp up its number of electric buses, part of the agency's goal for zero emissions by twenty forty.

For the nation's largest bus fleet, The m t A anticipate sixty new electric buses will start arriving later this year, with another four hundred seventy coming in three to four years. It will transition its shifty eight hundred bus fleet to all electric vehicles. Dr Anthony Fauci has clarifying comments he made suggesting that the COVID nineteen pandemic is over in the US. Fauci said this initially on the PBS News Hour. We are certainly right now in this country out of

the pandemic faith. But now Dr Fauci says the pandemic in the U s isn't over, but is in a more controlled stage. New York's highest court has rejected new congressional maps widely seen as favoring Democrats. The state's Court of Appeals agreed with a group of Republican voters who said the district boundaries were unconstitutionally gerrymandered and that the legislature didn't follow proper procedure in passing the maps. The decision may delay New York primary elections by as much

as two months. The parents of American Trevor Reid said they dared not build up their hopes when they first heard their son might be freed from Russia after being held three years. Yesterday they got the call that they have been waiting for. The former marine was swapped for a Russians and are being held by the US. They expect read to come home in a few days. Key

negotiator and former US Ambassador to the United Nations. Bill Richardson says that he has worked with two different administrations since twenty nineteen to secure Read's release and notes that these kinds of deals take a long time to come to fruition. These exchanges take a long time. During the Trump administration, it didn't work, and the relationship between President Trump and the Russians was better than it is now, but it didn't work, so it depends on timing luck.

Richardson says. Other Americans are still being held in Russia, including w n B A Star, Britney Grinder, and another former Marine, Paul Wheeland. The crew for astronauts arrived on our inside the International Space Station and dragon hatches open and they are welcoming the crew for extronauts on board. The NASA crew blasted off from Florida yesterday morning. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than hundred journalist tod

analists more than a hundred, twenty countries. I'm Michael bar This is Bloomberg, Nathan Michael. Thank you almost five ten on All Street time for the Bloomberg Sports Update. Good morning, John Stanho Alright, good morning. They think a couple of Yankees sluggers have been quiet heating up, so the Yankees there fifth in the row five two over Baltimore Stadium.

Joey Gallo, no home runs in his first fourteen games, now two and two nights, and Giant Carlos Stanton, with his first home run since the second game of the season, finally gets to three hundred and fifty career home runs. Only six players that have ever gotten there faster. Yanks go for the sweep this afternoon. Mets failed to get to sweep in St. Louis. Had a four one lead early on, but the Cardinals erupted and one ten to five.

Nolan Eronado erupted in the eighth inning. Did not appreciate Joan Lopez is up and in pitch, the bench is empty, the Cardinals manager, Carlos Marmal. When you come up top like that and and jeopardize someone's career in life, yeah, I take it. And uh, I don't think anyone in the big leagues appreciates getting thrown up top. No one has every right to react the way he did and

go after him, and we'll protect that. The Mets. J. D. Davis got there with a pitch of the top of the eighth was the fifth time in the series of met got hit nineteenth time this season. No other team has been hit by a pitch more than eleven times. Rangers at the Garden lost to Montreal four to three. Close out the regular season tomorrow night where Washington. That could affect whether they then played the Cats in the first round of Pittsburgh beats Columbus. Tomorrow, the Rangers will

face the Penguins. The Bucks will face the Celtics in the NBA second round. Milwaukee finished off Chicago. Golden State closed at a series with Denver. NFL Draft starts tonight in Las Vegas. Like last year, Jacksonville has the first pick, Jets have the fourth and tenth picks. Giants have the fifth and set up John stash Hewn Bloomberg Sports Nathan

all Right, John, thank you. SMP futures up seventy two points, staff futures up three hundred seventy NASTAC futures higher by three hundred one points or two and a third percent. You're listening to Bloomberg Daybreak. Bloomberg Daybreak brought to you by the New York Community Trust. Jour name Will live on as a champion of the causes you care about for years to come through a charitable bequest to the

New York Community Trust. Learn more at Philanthropists dot n y C. Markets headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Quicktape. This is a Bloomberg Business flash

and I'm Cara at Moscow. European stocks rallying along with US stock index futures after upbeed earning strengthen the bull gage for the economy and markets contracts on the tech heavy NASDACK jumping more than two percent, paced by gains and meta platforms, just after Facebook's main social network added more users than projected. Facebook shares are up about sevent in early trading. Yes p futures they're up seventy points down Future is up three hundred fifty five and nastack

Future is up two hundred ninety four. Again, that's up to and a quarter percent. The decks in Germany's up one point nine percent. Ten year treasury of three thirty seconds yield two point eight two percent, a yield on the two year two point five eight percent, nine make screwed. Oil is up half percent, or forty eight cents at a hundred two dollars. Forty nine cents of barrel comes gold.

Little change in eighteen eighty seven. Sixty announced the euro one point zero five to four against the dollar, British bound one point to five three two, and the yen is at one thirty point nine four. Bitcoin this morning up one point seven percent at thirty nine thousand, seven hundred fifty dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Muchael, Good morning, Good morning, Karen. President Joe Biden plans to

deliver remarks today on support for Ukraine. His administration looks too soon send the Congress a proposal for weapons and umnitarian assistance for Key that would last through September. Dr Anthony Falci is clarifying com n team made suggesting that the COVID nineteen pandemic is over in the US. Punty now says the pandemic is not over, but in a different phase. Round one of the NFL draft begins to night.

The Jaguars have the overall number one pick. The Jets have the fourth and tenth pick, the Giant select fifth and seventh. In the NBA Playoffs, the Warriors advanced to the next round after beating the Nuggets in Game five one. In baseball, the Yankees beat the Orioles five to The Medicine Nationals lost the Red Sox one. The A shut out the Giants one zip. In the NHL, the Rangers lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred

journalists and analysts more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg Naked, all right, Michael. Thanks, It's five nineteen on Wall Street Life from the Bloomberg interractor broker's studios. This is Bloomberg Daybreak. I'll go ahead and go there. There is a lot for investors in Facebook parent meta too, like the shares are surging, with the social media giant reporting a return to use their growth after last quarters first ever loss in that category.

Let's turn out a man Deep seeing get more on these earnings. Senior tech analyst at Bloomberg Intelligence, Man Deep, good morning. So can we say then that the user dropped in the previous quarter was a fluke, well not necessarily, I think the expectations going into the quarter or dire.

The sentiment was really negative and so what they did was really didn't come out with any further bad news as well as they said they're going to curtail their expense growth around metal wors, so net net revenue growth both slow and nothing has changed on that point. It's just the expense growth won't ramp up as fast as they laid out the last timber on. We were certainly though, seeing investors really piling into this stock this morning. What do you think is behind the move that we're seeing

for the shares? Well, so you look advertise, I think is a large trillion dollar plus market and it continues to be a duopoly with Alphabet and Meta being the true top players. And at the scale that Meta is at at, even if there is a deceleration in top line growth, this company still has over thirty operating margins.

And if they are telling us that, you know, costs won't go up the same way as it did last quarter, you know, costs were up whereas revenue was up seven but going forward it will probably the cost night of the equation will look much better. I think that is what is pacifying the investor. And as I said, the multiples had compressed to a point where they were pricing in a worst case scenarios. Obviously that won't play out. Do you buy that cost story though? Man Deep, but

the I mean certainly. Mark Zuckerberg has been talking about spending quite a lot of money on the meta side of meta platforms, and inflation still out there. We also inflat ship doesn't impact Facebook's operations as much as it does other companies. Yes, other companies will pull back on advertising, but eventually the ad spending will go up if we are not going into a recession. So the top line

book come back. And on the cost side, look, metal worse was a big thing for Facebook CEO last quarter. This time around, the tone had changed considerably. Now it was more about, okay, this is something for their ads. Will continue to invest, but we will invest in line with, you know, the expectations of the market around metal works and not be as aggressive as they laid out the last time around. So definitely a big change in tune

in terms of the spending on the metal works. So does that change in Toneman deep point to more of a focus than on competition on the social media side. It is pretty pitched competition for uh, not just you know, Twitter, some of the like see if you can call them that social media platforms, but of course TikTok absolutely, So what they're doing now is really pivoting aggressively to you know, match TikTok's algorithm, the AI based approach that TikTok has taken,

and so Facebook is doing the same. And the risk over there is Facebook's core kind of mode is around their social graphs, so now that they're making this pivot to AI based recommendation, they lose that advantage. At the same time, Facebook is kind of throwing a lot of resources to catch up to TikTok and YouTube, and I do think because of facebooks or meta scale in this business, they still have that advertiser base that will trust them to you know, improve the r o I on ad

spending just about thirty seconds left here, Mande. But just out of curiosity, do you see any impact for Facebook elon Musk's takeover of Twitter. No. I think twitdle was too small of a player in the ad space, so it doesn't have uh that kind of daring on the digital ad space. But at the same time, I think that was probably a bottom in terms of evaluation in the digital ad space. Thanks for this, mandep great having you on this morning. Thanks for getting up early. Really appreciated.

Man Deep Saying, senior tech analyst at Bloomberg Intelligence with us this morning. As we continue to watch shares of Facebook in the pre market after the positive earnings result, we are seeing a surge with metal platform shares up just about seventeen percent in early trading. As far as overall broader markets go, that's helping to drive a lift for futures contracts. You have SMP futures up seventy one point,

staff futures up there at sixty. NAZAC Future is leading the way with a two and a third percent gain up three hundred two points, just ahead a big slowdown expected in first quarter GDP and inflations taking a hit on the how sold outlook. Top stories of the morning just ahead on Bloomberg day Break, Bloomberg eleven three oh weather varying amounts of clouds and sun breezy today with high sneer fifty five degrees. We could get up to around sixty with sunshine and a breeze tomorrow, mostly sunny,

low sixties for Saturday. Right now forty one in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg E Looving Freedom to Washington, d C, Bloomberg On to Boston, Bloomberg one, O six one does San Francisco Bloomberg and I'm sixteen to the country, Sirius XM CHO one nineteen and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg daybreak. Man, It's five thirty on Wall Street. Good morning, I'm Nathan Hager

and I'm camerin Moscow. We are just about four hours away from the open of US trading. Let's get you up to date on the news you need to know at this hour. Meta shares are up almost seventeen percent this morning. That's after earning showed Facebook adding more users than projected. Man Deep sing as senior technology analyst at Bloomberg Intelligence, and he says the overall report is strong

despite missing revenue estimates. Last time. They give us a surprise that they're spending an additional you know, twenty billion dollars on this Reality Labs. That's the first time we learned about those numbers this time around. There saying they don't plan to increase it, but they plan to pair back a little bit. And the core Facebook and Instagram

engagement seems to be holding up quite well. Bloomberg Intelligence analyst man Deep Singh says Facebook added more than thirty million new users in the quarter, and big tech earnings continue today. Karen with Amazon and Apple reporting after the bell. Bloomberg Intelligence says Amazon sales may slow and Apple's growth could be down compared to last year. Well. Turning to the economy, Nathan, we get a reading on growth today.

Us GDP is expected to show a one person game when the figures are released this morning, and according to new finding, scaring higher inflation is affecting many Americans financial outlook. Let's get the latest on that live from Bloomberg's You Need a Young Good morning, Grina, Good morning Nathan. A gallop pole shows less than half of Americans rate their financial situation as good or excellent, and some forty eight

percent say it's worsening. That's similar to levels seen a month into the pandemic and during the financial crisis of two thousand eight, So what's driving the worry? The survey finds that a record thirty two percent of Americans rank inflation at a high cost of living as the most important financial problem they're facing today. Live in New York, I'm gonna need a Young Bloomberg day break, all right, RI need to thank you well. Overseas, the Japanese en

hit a two decade low against the dollar. Right now, the rant the end is trading at one thirty point four and nine against the dollar. In turning to Ukraine, Karen, President Biden delivers remarks today as he prepares a proposal for Congress to ship more weapons and aid to Kiev. And meantime, the Financial Times reports Germany and other European nations could open ruble accounts to pay for Russian gas.

Patrick de Haunt of gas Buddy says uncertainty in Russia and COVID and China could cause continued volatility and gas prices. Certainly a very bumpy and volatile summer as we continue to see markets digest burying headlines that seemingly are on opposite ends of the spectrum. Patrick Dehn with gas Buddy spoke with our Washington correspondent Joe Matthew on Bloomberg. Sound on Catch the Show weekdays at five pm Eastern on Bloomberg Radio, and futures are high er SNP Future is

up sixty nine points down. Futures have three hundred forty nine at nashtak Future is jumping up two hundred nineties. Straight ahead your latest local headlines plus a check of sports. This is Bloomberg. Thanks caring on Wall Street forty degrees in Central Park. We got accident clean up down the northbound uh Grood one and nine at Root four forty in New Jersey City. Now Michael Bars here with more on what's going on in New York and around the world. Michael,

thank you very much. Nathan. New York's mt A is going for zero emissions by forty The authority plans to ramp up its number of elect trick buses. The m t A anticipate sixty new electric buses will start arriving later this year. The m t A plans to transition it's fifty hundred bus fleet to all of interature vehicles. Dr Anthony Fauci caused quite a stir after comments he made to PBS suggesting that the US is not in

the pandemic phase of COVID nineteen anymore. He clarified those comments, saying the pandemic isn't over, but the country is now in a different phase. Health experts say cases are going down because many people now have some kind of immunity to the virus. Dr David Aeggis, I think what was implied and what was meant is that we're at a better state in terms of the war on COVID nineteen.

What it means is is that we are now having significant numbers of COVID ueen infections in the United States, has evidenced by the recent infection of our Vice president. But at the same time, hospitalizations and deaths are not going up. Dr Aggas spoke to CBS. Trevor Reid, a former Marine held in Rush since was released to US

officials as part of a prison swap with Russia. Key negotiator and former US Ambassador to the United Nations Bill Richardson, says that their focus now turns to other detained Americans in Russia, including w n B A Star Brittney Grinder. It's very murky what has happened, but she deserves to come home. And it's important that we focus on her. But also there's another marine. His name is Paul Wheeling. He's been there almost three years. Former Ambassador Richardson says

Reed's parents expect him home in a few days. President Biden honored Teachers of the Year at the White House. Biden says being a teacher is one of the toughest jobs anywhere, and so I think people won't realize it's hard how much you prepare. President Biden says he overcame his stutter as a child because of his parents and his teachers. Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than journalists and analyst and more in a hundred twenty countries.

Michael Barr, this is Bloomberg Danther. Thank you, Michael wall Street. Time for the Bloomberg Sports Update with John all Right, Nathan amidst this hot start by the Mets came a flurry of Mets getting hit by a pitch nineteen times and twenty games. It happened five times in St. Louis, so many were wondering when the benches might empty with the Met charging the mat instead. It was a cardinal who came charging Nolan Eronado eighth inning after an up and end pitch by the Mets go On Lopez. Eronado

had had three hits three RBIs. St. Louis won the game ten to five, with Carlos Carrasco gave up seven runs eight hits. The Mets still win the series. They've won all six series they've played, although they've yet to have a sweep. Yankees today go for their second straight series sweep. They won their fifth and row with the Stadium five to two over Baltimore. Michael King got the winning to leave home runs for John Carlos Stanton and Joey Gallo, and a Yankee suddenly have the best record

in the American League. Rangers at the Guard and lost in Montreal four to three. Closed out the regular season tomorrow against Washington NBA playoffs. Couple of m v p s led their teams to series clinching wins. Thirty three points for Jana's son to the Compo. Milwaukee finished off

Chicago thirty for step Durry. Golden State wanted series with Denver NFL drafts in Las Vegas, but New York will dominate the early going Tonight after picks by Jacksonville, Detroit, and Houston, it's the Jets, then the Giants, then Carolina, then the Giants again, and three picks after that the Jets again, unless there's a tray the Giants GM Joe Shane.

If you get greedy and you're like, let's move back and then that guy's gone, you are you gonna sleep better at night knowing you've got an extra sixth round pick and you move back four spots, but you lose the guy you want, or you just let's just take the guy and not degree. So you played through all those situations, you'll not known who Jacksonville will take first overall.

John Stashower, Bloomberg Sports Nat thanks John seven on Wall Street Time for the Tri State Business Report with Bloomberg, said Corey. Four months ago, New York City lawmakers voted to require ads for jobs to include dollery ranges in the name of giving job applicants, especially women and people of color, a better shot at fair pay. But on the verge of implementing the measure, lawmakers will probably vote today to postpone it for five months after employers waved

red flags. More New York compartment renters are declining to renew leases as they faced rate hikes landlord equity residentials, as the current renewal rate of the company's buildings in the area is around sixty percent, down five percentage points from the beginning of the year. Thousands of people who lined up for the first day of legal retail sales at New Jersey marijuana dispensaries ended up spending about one

hundred fifty three bucks apiece. Spenseries grossed about two million dollars for more than twelve thousand customers in the first sales day, according to the State. Drew Bloomberg Try State Business Report. I'm Ed Corey on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team now for some of the top stories heard on our three hundred affiliate radio stations around the world.

I'm Steve Podas kana K of X in Los Angeles. We're talking about California making a top five list of the best places to work in tech, but it's not number one. I'm Courtney Donahoe on ktr H in Houston. The number of Americans upbeat on their finances falls to Lewison. I'm Joan Donnager telling k CDs listeners in San Francisco. Facebook hosted the User Numbers that Matter to Wall Street.

I'm Caroline hit called Bloomberg, DAB Digital Media and Onto workporting on earnings, beats on parties unstandard charted as almost seventy companies in Europe published results today. I'm ed Corey on w w J in Detroit. I'm reporting Ford slightly beat earnings expectations in the first quarter. And those are some of the stories our twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine on Wall Street. The following is

an editorial from Bloomberg Opinion. Congress is moving closer toward imposed new restrictions on billions of dollars in out banned investments. Unfortunately, the rules could overwhelm regulators and entangle US companies and red tape. The issue is coming to a head now as House and Senate negotiators prepared to reconcile two massive

bills aimed at improving US competitiveness against China. One proposal in the House bill would create a committee scrutinizing investments that might increase dependence on China for critical goods and services. But it's far too broadly written. Countless harmless transactions could fall under his remit. Once more, the required review process would be easy to politicize. It would also put US companies at a disadvantage to competitors facing less burdensome regulations.

The US isn't wrong to worry about emerging vulnerabilities, but rules like these would create more problems than they solve. This editorial was written by the Bloomberg Opinion Editorial Board. I'm David Shipley. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or OPA and go on the Bloomberg terminal. These has been Bloomberg Opinion. Listen for

Bloomberg Opinion editorials every weekday. At this time, terminal customers can read more at O P I n GO SMP futures up sixty seven points now down, futures up here and at thirty four NASTACK futures higher by two hundred eighty two points. This is Bloomberg Bloomberg eleven three oh weather mix of sun and clouds, breezy, mid fifties for highest today will be near sixty with sunshine in a breeze for Friday, mostly sunny, low sixties on Saturday. Right

now forty in Central Park. Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Quick Tape. He's a

Bloomberg Business flash and I'm camered Moscow. European stocks rallying with US stock index futures after UPPIAT earnings after the bull cache for the economy and markets to spelling growth fears for now contracts on the tech heavy NASDACK jumping more than two percent, pacing five gains in meta platforms is after Facebook's main social network added more users than projected.

And we check the markets every fifteen minutes throughout the trading day on Bloomberg shares the meta platforms, they're rising in early trading, up almost seventeen percent. S and P futures are higher, up sixties seven points. Now futures are three hundred thirty one and NASDAK futures are up two eighty four. That's up two point two percent. And attend your Treasury up five thirty seconds hell two point eight

one percent. That's a Bloomberg Business Flash. Now here's Michael Barrow with more on what's going on around the world. Michael Karen, thank you very much. Russian President Vladimir Putin warned that any country is attempting to interfere in Ukraine would face a quote lightning fast response from Russia. It comes as NATO is saying it will welcome Finland and Sweden with open arms should they decide to join. Later today, President Joe Biden plans to deliver remarks on support for Ukraine.

Row One of the NFL draft begins tonight. The Jaguars have the overall number one pick, the Jets or fourth. The Giants elect five. In the NBA playoffs, the Warriors advanced the next round after beating the Nuggets in Game five. In baseball, the Yankees beat the Orioles five to the Mats and Nationals lost the Red Sox one. The a

shut out the Giants one zip. In the NHL, the Rangers lost Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty hundred journalists and analysts in more than a hundred twenty countries. Michael Barr, this is Bloomberg, Nathan, Michael, thanks for coming up to five forty nine on Wall Street Life from the Bloomberg Interactive Broker Studios. This is Bloomberg, Dave break. Let's get more now in these earnings from Meta platforms

and a return to user growth for Facebook. The shares, as Karen mentioned, are surging this morning, and we're joined now by Angelo Zeno, senior industry analyst at c f R. A Angelo, good morning. Up in the pre market, but Meta is still well off, it's high for the year. You're changing your price target after these earnings. Well, we we didn't change our target price. We actually lowered it

to two dollars. It was just more tempering some of them, the higher expectations we kind of had several months ago, um, you know, kind of compressing the multiples a bit down to about seventeen times three estimate. So um at the end of the day, yeah, I mean tempering the expectations here. Um, I think you've overall in the in the broader market, you've kind of just seen a downwardly revised um, you know, shift in multiples, and that's where we sit right now.

So what's driving this down shift in expectations for you? Yeah, listen, I think as far as the the mobile AD space or the broader AD space, UM goes, this is just an environment that that's just extremely me challenging to deal with, probably the worst we've seen in years and overall, I mean, we we just came out of two great years for the AD space and we're now having to kind of deal with mounting headwinds related to rash Ukraine, which is

leading to europe softness, unfavorable currency because of UM. You know that some of the moves by the FED here in more competitive landscape and overall lower engagement levels when you kind of look at some of the pandemic numbers a year ago. So overall, kind of that mix UM is leading towards kind of our lower expectations, not only for alpha for meta, but for the broader UH media space. Do you think meta platforms is going to have to

do more with the meta side of meta platforms? Yeah, I mean, unfortunately that's going to be a kind of a three, five, potentially ten year type of endeavor. But you know, when we think about meta in general, they do have a number of kind of growth opportunities tied to them, including reels, which is kind of more of those shorter form videos out there. That's that seems like it's really gaining some nice traction in a quick way. Um, it's kind of their answer towards TikTok You've kind of

got there. They're looking at more of an AI driven ad platform to combat to some of the issues we've seen with the I O S changes from Apple. And then, of course, to your point, the Metaverse Reality Labs did growth thirty year of a year. Uh So overall, they're seeing some good traction on that side of things, but off a very low base. Again, this is gonna be a multi year project on the on there and trying to retool their platform to better serve a younger audience

out there. You mentioned that to forty price target from out of platforms. Right now, the shares are trading at two oh four fifty in the pre market, so not too far from that benchmark you mentioned Apple Angelo. They're going to be reporting after the bell today, continuing with the big tech earnings this week. What are your expectations,

what are you looking for going into Apple's reporting? Yeah, so as far as Apple is concerned, we're looking for about five percent year of a year growth on the revenue side of things, very similar type numbers for the June quarter. I think it's an extremely important UM number

to be looking at here in terms of UM. What they're going to say as far as not only on the smartphone side of things, which is seeing some struct which saw some sharp declines in the first quarter, specifically out of China UM due to some of the issues going on there. But but what they have to say as as far as supply constraints have to go, how they're handling it, especially as they kind of guide for that June quarter. And then UM for us, it's all

about capitals. It's all about the services number. We're looking for seventeen percent growth on the services side of things. That's what's gonna keep the multiple going. In terms of Apple, if there is a big hiccup on the services side of things, I think you start seeing problems in terms of the Apple story. But we're not looking for that

at well. And then of course Apple capital allocation is the other side of story for Apple in the March quarter, and we're looking for a hundred billion dollar buy back in a seven percent division years. Ye. Yeah, I was gonna ask Angel with about thirty seconds left here, if the China slowdown continues, does that put more emphasis on services for Apple in the quarters of upcoming Yeah, it absolutely does. But again this is this really is the

growth story for Apple. The company trades that amid mid twenty type multiple because of that services stories. So as long as they can continue in the mid teens type of growth number, I think we should be fine. Um or long term investors should be fine out there. All right, Angelo's you know, senior industry analyst at cf are a great to get your thoughts this morning. Thanks for being with us, Karen, great, Nathan, thank you. It is five

fifty three on Wall Street at this time. Now for the Bloomberg Law Reboard, brought to you by American Arbitration Association. Business disputes are inevitable, resolve faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years.

More at a d R dot org. Now, one of the stories we're following this morning this week, the Supreme Court question President Joe Biden's effort to resend that Trump were a main in Mexico policy, which has forced tens and thousands of asylum seekers to say south of the border while their asylum applications are processed. Texas and Missouri contend the program is legally required under an immigration law because the number of asylum seekers far outstrips the detention

capacity during oral arguments the courts. Conservative justice is generally signal support for a lower court order that forced the administration to restart the program for more of Bloombergs Jon Grossos speech to ly On Fresco, a partner at Holland and Knight. This is a Trump era policy. Administrations change and policies change. Why can't the Biden administration institute its own policy. Well, because there's two separate arguments that are being made by the State of Texas, and we'll find

out if they're correct or not. The first is that the statute itself actually requires the Biden administration to use this remain in Mexico policy in a situation where there's not enough detention space to actually hold every single person coming across the border while their case is decided. That's

the argument that the State of Texas is making. That's their first argument, and so if the Biden administration is actually violating a statute, then that's a very simple argument per State of Texas to make and to prevail on.

And then their second argument is, well, even if they didn't violate the statute and they have discretion for how to interpret the statute, their ending of the migration protocols in this situation is arbitrary and capricious because they're not providing sufficiently good enough reasons for ending the Migration Protection

protocol or what's known as remain in Mexico. Can you read anything into the fact that the Supreme Court rejected the Biden administration's request to block the lower court's decision, You would think, ordinarily that that would be the end all be alls, that it's very clear you're gonna end up back with the Saints the three decision to philosophized

administration from listing the migration protection protocols. But what you could sense in the argument was these justices personally grappling with a lot of the argument in a way that made it clear that perhaps they hadn't really been as informed as to the details of both the statutes and the policies placed on the border, such as there's certainly

reason to believe that the decision could change. They didn't seem to be fully aware of everything going on as this argument, and so from that I could see the position changing. But of course, I think if you were a person who was trying to stay on the safe side, you would say, well, of course it's going to stay at the same six to three as it was before. I think that would be logical as the conventional wisdom.

But I just think that there was enough new information and insight from this hearing that I can see at least one vote changing. The question is whether there will be two. That's an interesting question. And that's Leon Fresco, our partner at Holland and Nights, speaking at the Bloomberg Student Grasso. Catch more of that interview, plus analysis of the latest legal news, by subscribing to the Bloomberg Law Podcast or downloading this show at Bloomberg dot com slash podcast.

Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b Law. Go and again. Futures are jumping this morning. S and P Futures up sixty three points down. Futures up three hundred and four. Nasdaq futures have more than two percent, up two hundred sixties seven points ten, Your Treasury up six thirty seconds. Yeld two point eight zero

per cent and still ahead. On Bloomberg day break and check on the business headlines and all the news you need to start your day. This is Bloomberg.