Bloomberg Daybreak: April 29, 2022 - Hour 2 (Radio)

strike Ukraine's capital Keith, New York City. The lay's pain rules that are meant to close the gender gap, plus the days of flavored cigarettes and cigars may be numbered on Michael larn More, ADM John dash Hour and swards.

The Jets and Giants with two top ten draft picks both went defense, then offense the Yankees when there's sixth in their own 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 App. Good Morning, I'm Nathan Hagar, and I'm

Karen Moscow. In US not Index futures are lower this morning. We are coming up to six o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg right now, S and P futures down about twenty nine points down, futures down a hundred thirteen,

and NASDAG futures down one thirty. The decks in Germany is up one percent, the ten year treasury down twelve thirty seconds, held two point eight seven percent, and the yield on the two year two point six eight percent. Nathan Karen, we begin this morning with market reaction to the latest slew of earnings. Apple shares are down two and a half percent in early trading. It had records setting earnings, but those are being overshadowed by the iphonemaker's forecast.

Apple predicts supply constraints will cost four to eight billion dollars in revenue during the current quarter. CEO Tim Cook addressed the issue on the company's conference call. I want to acknowledge the challenges we're seeing from supply chain disruptions driven by both COVID and silicon shortages, to the devastation from the war in Ukraine. We are not immune to these challenges. Apple CEO Tim Cook also announced ninety billion dollars in new stock buybacks. Well Nathan Chairs of Amazon

or down amost nine percent this morning. The e commerce giants said a loss money during the first quarter and may see another loss in the current period. Amazon's Cloud Services division AWS continued to impress, but a hiring and warehouse building binge during the pandemic weight on the bottom line. Punham Goyle covers Amazon for Bloomberg Intelligence. For a long time, a WS has been able to offset the weaker retail business,

but it's not enough. With growth slowing on the top line across the online business, the foster rising just too fast for them to herb those higher cooks. Bloomberg Intelligence analysts poon Um Goyle says, for the first time ever, Amazon recorded back to back quarters of less than ten percent revenue growth. All right, let's check out some other stocks on the move this morning. Karen shares of Intel are down three and a half percent. The chip maker

gave disappointing sales and profit forecast, indicating weaker demand. Robin Hood shares are down eleven percent. The financial upstart says first quarter revenue tumbled well, Nathan. We wrap up a busy week for earnings with Big Oil and Focus and x On Mobile reports. This morning, we get a preview

from Bloomberg's Tom Busby. After Russia's invasion of Ukraine sent crude prices surging over the past two months along with global demand, It's boom times right now for the nation's biggest oil producers, and because of that, Exxon Mobile is expected to post its biggest quarterly profit in more than a decade. Investors will be looking for guidance on increased crude production and possibly more shared by backs and higher dividends. I'm Tom Busby, Bloomberg Daybreak. Thanks Tom. Earning so far

if not turned around market sentiment. In fact, the SMP enters this final trading day of April on track for the worst month since the pandemic bear market. More from Bloomberg's Charlie Pellett. The SMP is showing a month to day loss of five point four percent. By comparison, this month, Nasdaq is down nine and a half percent, while the

Dow is down two point two percent. Volatility has been eight persistent feature in markets all year, with investors on edge over China's struggle to suppress COVID, Russia's war in Ukraine, and worries that central bank tightening may tip the U s economy into a recession. In New York, Charlie Pellett Bloomberg Daybreak, all right, turning thank you Well? In Asia has a different story for stocks today. A Chinese technology shares jumped after new policy promises from the country's top

leaders to bolster the economy and markets. Let's get the recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliet, Good morning Karen. The m c I Asia Pacific in x rose for a third time this week, with ten Cent and Ali Baba among the biggest gate is the Hang Sang Take index sword more than ten percent, rebounding from earlier losses as the country vowed to support healthy growth of platform companies shortly before the measures were unveiled.

Chinese tex stalks reversed earlier losses as trade has speculated about a possible relaxation of the year long regulatory clampdown, and China's You unstrengthened a little during the day's trade, but his poised for a record monthly drop as the economy suffers from lockdowns resulting from the nation's COVID zero policy. In Sydney, Juliette Sally Bloomberg Daybreak. All right, Juliet, thank you the We're getting more details this morning on how

Elon Musk is financing his Twitter takeover. Let's get the latest live on that from Bloomberg's Rnita Young. Good morning, Granita, Good morning Nathan. While Street suspected Elon Musk would have to sell some stock to cover the twenty one billion dollar equity portion of his Twitter deal, now a filing shows Musk offloaded about four billion dollars worth of Tesla stock.

Shortly after those filings were made public, Musk tweeted no further Tesla se sales were planned meantime, Bloomberg sources say before the deal was announced, Musk floated the idea of cutting both jobs and costs at Twitter. On calls with bankers. Musk also discussed ideas to monetize the platform to boost cash flow, including a potential subscription service to drive recurring revenue. Live in New York, I'm gonna need a Young Bloomberg Daybreak,

All right, we need to thank you. Let's shift years now and get to the latest on Ukraine. Russian missile struck Kiev overnight, but the battle for don Boss is still Russia's strategic focus. Meantime, here in the US, President Biden is asking Congress for thirty three billion dollars in aid to Ukraine, but the road to approval won't be easy, and Bloomberry said, Baxter has the story. The Ukraine part has broad support across Congress, but at risks getting snarled

in his ask for COVID funding and immigration. The Senate could vote on the emergency spending next week, but the House will be on recess, so Congress could finish by the week of May nine and send it to the President. But if Democrats insist on attaching long stalled funding for vaccinations and immigration costs, it could be delayed indefinitely. Biden did urge Democrash to pass them together. In San Francisco, I'm at Baxter Bloomberg daybreak. All right, ed, thank you.

Futures are moving lower this morning. Straight ahead, your latest local headlines, and a check of sports. This is Bloomberg. It sounds six o seven on Wall Street, forty two degrees in Central Park. Got an accident on the westbound l I eight the Seaford Oyster Bay expressed way details coming up in traffic First Michael bar with more on what's going on in New York and around the world.

Michael Nathan, Thank you kindly. New York City has postponed one of the nation's most far reaching requirements for employers to tell job seekers what they can make. Such pay transparency laws are championed as giving applicants, particularly women and people of color, a better shot at fair pay. The law was supposed to take effect in May, but the City Council voted yesterday to delay it for five months

after employers waived red fly eggs. The law says employers with four or more workers must include a minimum and maximum salary in any job. At New York State is setting aside more than thirty one billion dollars and this year's budget for schools. Governor Kathy Oakeles has more than three hundred sixty million dollars in this fiscal year will help students and teachers and yonkers bounce back from the pandemic.

They have just signed a budget, supported a budget they had the highest investment in education in our state's history. Governor hokel says every penny is worth it. Funeral services are sent for today for fallen f D n Y firefighter Timothy Klein. Klein died Sunday while finding a blaze in Brooklyn. Services will take place for the thirty one year old in Bell Harbor. A twenty one year old

man who had autism also died in that blaze. In the Southwest, thousands of firefighters have continued to slow the advance of destructive wild fires, but i winds return today that sparked the spread of the blazes a week ago. More than a hundred sixty homes have been destroyed in one rural county in northeast New Mexico. The FDA wants

demand menthol cigarettes and flavored cigars. FDA Commissioner Robert Caliph says studies that show the menty taste and cooling effects of menthal and cigar flavors like strawberry and grape increase the appeal for adults and young smokers alike. We really want to emphasize this. It's not just um. We want to take away mental in cigarettes as we want to help people stop this uh um smoking which is causing

so much depth and disability. FDA Commissioner calif says menthol cigarettes account for more than a third of all cigarettes sales in the US. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists analysts in more than a hundred twenty countries. Michael Bart, this is Bloomberg. Thank you, Michael. Almost six ten on Wall Street. Time for the Bloomberg Sports Update with John Stisham. All Right, Nathan's second in

a row. The NFL draft again with Jacksonville. The Jacks took Georgia pass rusher Trevon Walker that allowed Michigan's defensive end Aidan Hutchinson to stay home. With Detroit, Houston took l s U cornerback Derek Stingley, and the Jets, picking fourth overall, took another cornerback, Cincinnati's ahm Odds Sauce Gardener. Not once in college did Gardener allowed the receiver who

was defending the score a touchdown. Giants were next, their pick announced, not quite Commissioner Roger Gadell, but by nineteen year old New Jersey resident Sam Prince, who showed great exuberant he has a heart and lunk condition was part of the Make a Wish program. With the fifth pick, and it's quatint to NFL Draft, the New York Football Giants select Cavan Tibodel, once projected to be the first pick of the draft. Should help a Giant's pass rush

that was virtually non existing last season. There offensive line also struggles to two ks later, the Giants took Alabama tackle Evan Neil. The top ten ended with other Jets pick Ohio State white out Garrett Wilson. So Zach Wilson will throw passes to Garrett Wilson. Rounds two and three of the draft tonight in Las Vegas. Quite a homestaff of the Yankees. Six game six wins ten five over Baltimore, three went home for Aaron Judge five Baltimore errors. That's

one more than the Yanks had all season. NBA playoffs three game sixes all were series clinching wins on the road, Philadelphia just one at halftime, Sixers one by thirty five in Toronto, Dallas one by two in Utah, and Phoenix one in New Orleans. The Sons Chris Paul took fourteen shots. He made all fourteen John stash Eller Bloomberg Sports John,

thank you. SMP futures down twenty nine points, Staff futures down a hundred thirteen NASTAC futures leading the declines, down a hundred twenty nine points, are almost one percent to ten. Your treasuries down thirteen thirty seconds. The yield two point eight seven percent. Apple and Amazon shares continue their slide after earnings will get analysis next with Alex winn Ub of Bloomberg Quicktake and Bloomberg Opinion. This is Bloomberg Bloomberg

eleven three oh weather mostly sunny, breezy, low sixties. To wrap up the week, Bailey sunny Tomorrow, low sixties, clouds increase. Sunday will get up to near seventy right now forty two degrees in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quick Take. She's a

Bloomberg Business Flash, but I'm Karen Moscow. This update brought to you by me and why Melon's perishing learned by the world's most sophisticated wealth management and institutional firms are rely on perishing to help him improve profitability, create efficiency, attract talent, and manage risk at Pershing dot Com. While stocks in Europe are rising as China's pledged to ramp up stimulus lifts optimism and strong earnings continue to roll in while you are stock into futures are lower following

earnings from Amazon dot Com and Apple. What technology shares really leading the way this morning? Amazon shares are down eight and a half percent this morning. Apple is down two and a half percent in the pre market. And we check the markets every fifteen minutes about the trading day on Bloomberg. So again, Nasdack Future is leading things lower, down a hundred twenty three points or about nine tenths of a percent. S and P futures are down twenty

eight and now futures down one hundred sixteen decks. In Germany up one percent. The ten year treasury down fourteen thirty seconds, yield two point eight seven percent. Yield on

a two year two point six eight percent. Nine max screwed oil is up one point one percent of a dollar nine, up a dollar nine at a hundred six dollars forty five cents of barrel comex schoold is that pointed at third percent or twenty five dollars eighty cents at nineteen seventeen an ounced the euro one point oh five six two against the dollar, British pound one point to five five seven and the end at one thirty point four two and bitcoins lower down one point seven

percent at thirty nine thousand, two hundred dollars. That's a Bloomberg business flash. Now is Michael Barrow with more on what's going on around the world. Michael Karen, thank you very much. Russia found it targets from practically one end of Ukraine to the other, including Kiev. The bombardment of the city took place while the head of the United Nations was visiting Ukraine's capitol. Round one of the NFL draft is in the books. The first five picks where

all defensive players. The Jaguars took Trayvon Walker with the top pick. The Jets at number four pick cornerback amand Gardner. The Giants at five took another edge rusher, Cavan Thibodeaux. By the way, the Steelers took the first quarterback and twenty of Pitts Kenny Pickett. In Maseball, the Yankees beat the Orioles ten five, The Red Sox Nationals lost in the NHL, The Islanders beat the Capitols five one, The

Devil's Lost Bruins one. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more in than twenties seven hundred journalist and analysts more than a hundred, twenty countries. Michael bar this is Bloomberg, Nathan Okay, Michael, thanks for coming up to six twenty on Wall Street Life from the Bloomberg Interactive Broker studios, This is Bloomberg. A daybreaking is car and mentioned it's tech that is leading the declines in the pre market this morning after

earnings that disappointed analysts from Amazon and Alphabet. I'm sorry from Apple, not Alphabet. They reported earlier this week, didn't they. Alex Webb is back with us this morning Bloomberg twig Take correspondent tech columnist for Bloomberg Opinion to dive in a little bit more into these latest earnings. Alex. Great to have you back on with us. Let's start with Amazon simply because the shares are getting punished in the early more morning trading. UH seems as though a losing quarter.

UH is not something anybody really expected from the biggest e commerce player in the world. Yeah, and it's also the scale of the of the problem that they were basically saying that they expanded rapidly during the lockdowns and not ensure they had the capacity to meet demand. That demand has perhaps inevitably now slackened. Then there's less than with a huge amount of capacity, which in turn entail fixed costs. When you got warehouses and in eployees, those

things cost your money. And it is a change from the trend we've seen in the past where people had complained about Apple, sorry about Amazon operating at the loss and whether you know this is the kind of Amazon one point oh ten, fifteen years ago, will they ever make a profit? Then it became very clear that they could turn a profit quite easily if they just turn a few spiggots, you know, cramp down on on costs quickly.

Now they have expanded beyond that, and their cost controls seemed to have slightly gone out the window, and that's causing concern. And I guess there's got to be concerned as well with not just the cost picture, but the macro headwinds facing Amazon, with inflation and potentially the cost rising for consumers who might want to buy stuff on Amazon, potentially eating into their margins. Exactly. Yeah, their customers are perhaps getting a little bit more cost conscious, while at

the same time Amazon's costs are increasing. How did they get things to your front door? Sure they might have some electric vehicles, but for the most part it's stuff that requires fuel, and fuel is getting a lot more expensive too, so that having to impose surcharges. So, just as you know, it's the classic inflation story. Just as consumers are being more conscious about spending money, Amazon Zone

costs are also increasing. And I guess that's not as much of an issue for Apple, or at least that's not what the focus was for CEO Tim Cook. On the call last night, He's talking a lot about supply chain constraints, which also gets to what is traditionally one of Apple's key strengths, the ability to manage the supply chain.

In fact, the supply chain that Tim Cook largely built that is now hurting them because of the lockdowns in China, which means they can't get all of the semiconductor or another electronics that they need to go into their devices. And that's going to have afford a billion dollar impact on on revenue um. It's also significant given the timing because over recent quarters we've had a few times the sense that Apple hasn't got enough supply to meet them

to meet demand. But investors tend to not get too concern because they know that demand is going to come at a later stage right now, as we get closer to the new lineup of iPhones in the autumn, if it's another quarter until people are able to get everything they want, then they will push it a further quarter still to wait for those iPhones. So it does have an impact on earnings to that point. Alex I was

talking with Gene Munster from Louke Venture's Last Hour. He says that Apple fans have shown in the past that they're willing to wait. Are they willing to wait that long if supply chain constraints push new products back six nine months down the road in our last thirty seconds here, well, I think it isn't necessarily that they're willing to wait. Is what it does the replacement cycle that we've gone seen.

The replacement cycle, the pacer which people will replace their iPhone extend from two years to three years and if there are other reasons that push it even further, then maybe if you'll start realizing they don't need to replace this regularly and it sends to four years, Apple wants you to be updating your phone, replacing your phone far more regularly than that. Thanks Alex, Lots of A's in

the Feng picture. Alex web with us this morning, Bloomberg Quick Take correspondent Tech Calmness for Bloomberg Opinion, talking Apple and Amazon this morning and looking at the shares. Amazon is down eight and a half percent in the pre market, while Apple is lower by two and two thirds per cent, helping to drag the broader index is lower this morning, with SMP futures down thirty two points, DAL futures down a hundred thirty eight. Nasdaq Future is also lower by

a hundred thirty eight points. That is a drop of one percent for the tech heavy Nasdaq futures ten. Your treasury down thirteen thirty seconds, the yield two point eight seven percent. Just ahead, we hear from Apple CEO on the tech out look and where's Elon Musk getting the money to buy Twitter? Five things you need to notice start your day next on Bloomberg Daybreak. Bloomberg Daybreak is

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the Bloomberg Business app in 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. Time for the five things you need to notice start your day. Brought to you by I v k R Investment Advisors switched to interact your brokers for lowest cost global trading and turnkey custody solutions, no ticket charges and

no conflicts of your interests at ibkr dot com. Slash R I A up first. Apple shares down almost two percent in early training despite posting record earnings and a conference call yesterday, the company said it could lose up to eight billion dollars in the current quarter do to supply constraints, and shares of Amazon are also lowered this morning, Karen by a half percent after announcing it lost money

in the first quarter. Bloomberg Intelligence senior e commerce and retail analyst Punum Goyle says it's due to rising costs. Aws continues Let's pace, so that's great to hear on the online business clearly in line with expectations. But the margin week you could say that that's surprising, but it's really not. I mean, from everything that we've been seeing all year, the supply chain crunch is only getting worse, it's not getting better. So they are getting hit from

higher costs across the board. Boomberg Intelligence analysts Punam Goyle and we have earning from Big Oil crossing the Bloomberg terminal. X On Mobile and Chevron both missed estimates well. Turning to Twitter now, Nathan, we're finding on more on how Elon Musk is financing his takeover. They get the latest line from Bloomberg's gonna a young good morning Radio, Good

Morning Karen. A filing shows Elon Musk offloaded about four billion dollars worth of Tesla stock to cover the twenty one billion dollar equity portion of his deal to buy Twitter. After those filings were made public, he tweeted no further Tesla sales were planned. Bloomberg sources say before the deal was announced, Musk floated the idea of cutting jobs and costs set Twitter you Know. On calls with bankers. He also discussed ideas to monetize the platform to boost cash flow,

including a potential subscription service to drive recurring revenue. Live in New York, I'm renned a young Bloomberg Daybreak, Renita. Thanks. Overseas, stocks and China are rebounding. The Hang Sang Tech Index surged to eleven percent. Chinese equities rallied as well after the country announced the economic stimulus plans and a commitment to curbing the spread of COVID and in Ukraine, Nathan

Russian missiles poured over the capital Kiev overnight. U s Secretary of State Anthony B. Lincoln says Russia's continuing it's offensive in the don Boss region. There is a ferocious battle taking place right now across hundreds of miles in eastern and southern Ukraine, and the Russians bring a lot of firepower to that. Secretary of State Anthony B. Lincoln said, the US and other nations continue to arm Ukraine to defend those regions. And that's the five things you need

to notice. Start your day. Ronty, you buy Interactive Brokers and straight Ahead your latest local headlines, paus A check of sports. And this is Bloomberg. All right, Karen, thank you. Sixty three on Wall Street, two degrees in Central Park. We have an accident on the inbound Williamsburg Bridge. Details coming up in traffic first. Michael Barr with what else is going on in New York and around the world.

Good morning, might call Good Morning, Nathan. New York City postponed enforcement of salary transparency until November after advocates and business leaders clashed on whether pay the school as your is the best way to close the persistent gender gap. The city Council, who voted for the delay also exempted companies for being charged a monetary fine for the first violation and limited lawsuits related to the pay information to

current employees. The approved amendments represent a partial win for businesses that had lobbied against the law, which was originally set to take effect by many fifteen. New York Governor Kathy Hokel says a record amount of school aid will be in this year's state budget. Governor Hokel spoke at a school and Yonkers, saying hundreds of millions of dollars will be going to Westchester's largest school district, one five billion dollars to help transform the lives of our children.

Every penny is worth it. Governor Okell says the state budget for education is an increase of more than two billion dollars from last year. Funeral services take place today for falling New York City firefighter Timothy Klein, he died Sunday while battling ablaze in Brooklyn. Services for Klein, who was thirty one, take place today in Belle Harbor, A twenty one year old man also died in that blaze.

President Biden confirmed there are ongoing discussions in his administration about reducing student loan debts, though not for a proposed fifty dollars Why Now's pre Secretary Jen Psaki says despite these talks. The President remains eager to sign anything that comes to his desk from Congress on this issue. Congress sent him a bill tomorrow he could sign it, and he would sign it to to give ten thousand dollars a student that relief. We've also he has not hesitated.

Spokesperson Saki says the President has not ruled out the possibility of executive action to get the ball rolling. The FDA says it will be moving ahead with a proposed ban on menthol cigarettes and flavored cigars nationwide. FDA Commissioner Dr Robert Kliff says you could save thousands of lives. An estimate show it meant that his mental is no longer an option in combustible tobacco products. Up to six hundred four thousand deaths would be avoided over the course

of forty years. Dr Califf says menthol cigarettes account for more than a third of all cigarettes sales in the US. Global News twenty four hours a day on air and on Bloomberg quit take powered by more than twenty seven hundred journalists and antatist more than a hundred twenty countries. Michael bar this is Bloomberg, Nathan Michael thank you. Turn him to six thirty six on Wall Street. John stash

Are has the Bloomberg Sports Update, Nathan. The draft was in Las Vegas, but New York dominated the early going with four of the first ten picks. The Jets at four took Cincinnati cornerback Sauce Gardner came back at ten to select Ohio State white out Garrett Wilson's with the Jets, Phil too definite needs, so did the Giants, taking Oregon pass rusher Cavan Timbodeau at five Alabama tackle Evan Neal two picks later Giants GM show chow Shane then asked

how it all shook out. We went to these scenarios a million times, Thank YOUZ. We had seven or eight cards and we has kept switching them back and forth based on different scenarios. And this is a scenario we went over and if there were two tackles on the board and the pass rusher, we're gonna go pass rusher, knowing we can get a tackle at seven. So we

were static when that that scenarios came up. The first overall was George ed Rusher Trayvon Walker to Jacksonville only one quarterback take and Kenny Pick he had played college football in Pittsburgh. He'll stay there. Taken by the Steelers, whose long time g V Ben luffat Burger just retired. Drafted tedious tonight with rounds two and three, Giants made official they will not pick up the fifth year option on QB Daniel Jones that would have assured him twenty

two million dollars in twenty twenty three. The Giants want to first see how Jones does if you can stay healthy this upcoming season. Yankees tonight bring their six game win straight, best record in American League to Kansas City. Yanks just beat the Orioles ten to five as Baltimore had five air Jararon Judge of the three run homer. NBA Playoffs top seed Phoenix trailed by ten at the half, but one in New Orleans. Chris Paul made all fourteen of his shots and the Sons win the series four two.

Dallas wanted series with Utah, so did Philadelphia with Toronto. NHL regular season ends tonight, and the Rangers will find out whether they play Pittsburgh or Washington or the Class. John Stairs with Bloomberg Sports All Right, John Thanks, six thirty seven on Wall Street. Time to take a look at stock some of the names moving in the pre market. Another very busy early morning session for Bloomberg Radio on TV Markets correspondent creating Gupta, not the least of which

reason why createy We are looking at tech earnings. We absolutely are looking at tech earnings, at oil earnings too, but we'll start with a tech because of course that's the one that's going to move the market a little bit more. Apple is down this morning, down to the tune of over two percent, falling of those warning on the supply constraints. Now, Nathan, this is significant because one of Tim Cook's legacies the CEO of Apple, is to really make sure that supply chain is secure and going

all the way into China. This is really a legacy of his going back even to the trade war and other issues that we've seen come out of Asia. And now they're actually warning of an eight billion dollar hit from the Chinese lockdown and from shortages. Remember, this is one of the concerns that was coming out of these Chinese lockdowns in terms of the ripple effects to the

rest of the world. Candles exports actually make it to the poorts and actually get out of the country to supply a lot of the technology and consumer goods to the rest of the world. So that warning from Apple largely kind of behind some of the weight you're seeing in the market this morning. Apple shares are, like I said, down A A p L is your taker, down in

the tune of two point seven percent night. And the other one you want to keep your eye on, of course, is Amazon, and we're gonna look at Amazon chairs here A m z N is your ticker. It is down to the tune of eight and a half percent. It was down far far more in the postmarket trading yesterday, think down as much as ten percent. It comes after they're showing a little bit of slowing in their growth system.

They're saying that, well, there's so much kind of momentum that we've had, you're not actually seeing the same amount of beat and the same margin of beat that you've had in previous quarters. Don't get me wrong. They are still growing and they're growing at a fast pace, just not as fast as before. And that's something that the stock market or investors have really punished them for, saying,

just how long can they really be growing? And you mentioned earlier, we did get some earnings just minutes of go from a couple of the oil majors. Yeah, two of the oil majors. This is huge, right where if we were expecting their biggest profits going back and over a decade, both companies EXCEN and Chevron have delivered. XOM is your taker for XN down one point two percent, Chevron c v X as your taker. It's about flat in the session, but still you're seeing a little bit

of movement here. Both are, like I said, coming out with some pretty big profit numbers. So why are is the stock down now? It's unclear at the moment, but I I remember this is also coming at a time or in the shadow of a lot of these big tech earnings who also reported, like I said, some major profits.

The concern here is the growth. So if you made a lot of money in this last quarter, which they have record profit, like I said, from this oil these oil prices that are rising in facts are actually talking about boosting their share buy back program for XCEN up to thirty billion dollars through three how much, how a lot much longer can that growth continue? And I think that sentiment is what's weighing on the stock this morning.

All Right, Bloomberg Radio on TV. Markets correspondent Creedy grouped out with us this morning, and as we take a look ahead to the open, futures are moving lower, with SMP futures down thirty seven point, Staff futures down a hundred sixty seven, Nasdaq futures adding to their declines, down a hundred fifty nine points or one point two percent now, the tenure Treasury down thirteen thirty seconds yield two eight

seven percent. This is Bloomberg Bloomberg eleven three or whether it's gonna be mostly sunny and breezy today, cool highs and the low sixties will stay in the low sixties tomorrow as well could It's seventy with increasing clouds on Sunday. Right now forty two in Central Park Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg quctape is a Bloomberg Business Flash and I'm Karen Moscow and technology and

dragging on U stock index futures. This morning, we got to the first word breaking news down for today's morning call, and here's Bill Maloney. Bill, good morning, and good morning, Caen that's right. U s features are under pressure, with Amazon, Intel, and Apple all down pre market after their earnings. Doubt you just could lay down a hundred and seventy two points as if you dropped thirty nine. NASDA futures are

lower by a hundred and sixteen. The US ten year old at two point eight seven percent, Gold is up twenty three. Oil is also climbing, but bitcoin is down by one point nine percent. Japan rose one percent overnight, while RPM markets are in the green, led by games

in Germany back in the US. On the Economic Funday thirty Personal Income and Spending at Chicago p m I and at ten o'clock Michigan Sentiment after the bell last night those earnings, Amazon sales forecast, missed estimates, Intel gave week Q two guidance, and Apple warrant of supply constraints

regarding earnings. This morning, Chevron and x on EPs missed estimates and wrapping things up, Dominos was cut to neutral over at bt I, g Facebook rates to hold at DZ bank, and Stanley Blackendecker was cut to neutral over at miszoo Hoo. From the first picking news DESCM B. Maloney, camp all Right, Bill and to hear live breaking news over your Bloomberg type swalk on your terminal. That's squ

a w K and that's a Bloomberg business flash. Now here's Michael bar with Moore on what's going on around the world. Michael Karen, thank you very much. Ukraine's leader has accused Russia of trying to humiliate the United Nations by reining missiles on Kiev during a visit by Secretary General Antonio Guterres when Russian target struck a residential high rise.

Former Minneapolis police officer Derek Chauvin is appealing his conviction for murder of George Floyd, arguing that jurors were intimidated by protests. Round one of the NFL draft is in the books. The first five picks all defensive players. The Jaguars took Trayvon Walker with the top pick. The Jets at number four pick cornerback of Mod Gardner. The Giants at five took another edge runner, Cavon Thibodeaux. The Steelers, by the way, he took the first quarterback of twenty

Pitts Kenny Pickett. In baseball, the Yankees beat the Orioles ten five. The Red Nationals lost in the NHL, the Islanders beat the Capitol's five, one, the Bruins one. Global news twenty four hours a day on here and on Bloomberg Quick Tech, powered by more than seven hundred journalists analysts more than twenty countries. I'm Michael Barr, and this is Bloomberg, Karen, Michael, thank you. At A sixty nine

on Wall Street. We turned to news and science and technology now with the Bloomberg and j I T Stemme Report, brought to you by New Jersey Institute of Technology and j I T offers New Jersey's first undergraduate degree in fintech, tech driven finance focused. Learn more at n j I T dot E d U slash Fintech and now Here's this making News and science, Technology, engineering, and math. Officials in China are defending the COVID zero strategy as still

the best way to fight the pandemic. They say the current outbreak is coming under control, with cases in Shanghai showing signs of turning around. The lockdowns have been criticized for exacting heavy social and economic costs. Elon Musk sold about four billion dollars worth of Tesla's stock after clinching the deal to my Twitter analyst and investors had suspected that Musk might need to sell some stock to cover the twenty one billion dollar equity portion of the deal

that he personally guaranteed. Meanwhile, and Musk pitch to bankers before the Twitter deal was done. He mentioned job cuts and ways to boost cash flow. And finally, snap has a replacement for the cheap phone stands and awkward outstretched arms of modern self filming. It's a yellow, square shaped flying camera drone that costs two d thirty dollars, weighs about a quarter of a pound, and hovers around you

to film you automatically. After filming, the drone can land in the owner's hand autonomously, and the images get auto uploaded to the owner's Snapchat account. It's available for pre order in the US and France and starts shipping in late May. And that's a Bloomberg and j I t Stem report. Nathan, I did not your Christmas present that I needed an upgrade to myselfie stick. Thank you, Karen, Were're alive from the Bloomberg Interactive Broker Studios where it's

sixty one on Wall Street. Let's check what's going on in d C now or. Some of the top stories include President Biden's Ukraine aid request potentially facing hurdles on Capitol Hilp Senator Mansion calling the President's electric vehicle tax credit ludicrous, and Elon Musk in Senate Democrats sites over the planned Twitter buyout. Bloomberg. Government reporter Emily Wilkins is with us for more on all these stories, perhaps most importantly, Emily,

the big ask from President Biden on Ukraine aid. But it's not just Ukraine aid that's in this package. No, it's not, Nathan. And You've got a number of different things, including measures that would allow the White House to use the Defense Production Act to expand domestic production of nickel and lithium. And I think a lot of people when they hear about funding to Ukraine, you think a lot

about the security and military assistance, economic assistance. This also does include humanitarian aid, and it also includes half a billion dollars of funding to address the global food shortage. So a lot contain within this thirty three billion dollar requests. And remember, of course, that you know from this request Congress is actually might not tweak the lad tweak the request a little bit too before it becomes legislation. I think a big question here is whether or not this

is going to contain additional funding for COVID nineteen. Remember that was something that Biden had requested requested it again. With this funding, Lawmakers came to an agreement on a ten billion dollar package for vaccines and additional treatment, but that got stalled over an immigration provision. So I think there's a lot of questions about whether Ukraine Aid will move alone, or whether it will move with COVID or

potentially even an immigration provision to it. Um. I think those are all things that we're going to learn within the next week or two. But where do you see the potential Emily four wiggle room on some of these provisions. Is there a possibility that the COVID AID could be stripped out given how difficult it's been for the President

to get it moving with that Title forty two provision? Absolutely, Nathan, I think there's a chance that this COVID AID could be stripped out and it could just be the Ukraine Aid that moves. Republicans so far have sounded very harsh

on including the two of them together in a certain package. Um. They've expressed that, you know, that's not the best way to move this that they just want to vote on the Ukraine Aid itself, and that threat of really slowing down this funding could could move Democrats to sort of say, hey, you know, we need going to have to move the COVID stuff separately. It's always tempting to move to add additional provisions to things that you know are bipartisan and

are going to pass. We're certainly seeing that play out here. Um but I think the big question, of course is are they going to have have the votes to move both COVID and Ukraine funding And if they don't, certainly Democrats don't want to see as being the obstructionist from getting that funding to Biden and then to Ukraine. And you've got to think, Emily that there's a lot of urgency not just on the Ukraine Aid, but on the

COVID aid as well. Oh absolutely, Nathan. I mean, you know you heard from House Majority leaders Denny Hoyer who kind of laid this out that you know, they want to get stuff on Ukraine. They understand that it's urgent, but they also feel that this COVID funding is particularly urgent.

I mean I know that you know, we're kind of hating a plateau in terms of those who are vaccinated, that the mask mandates are off in many places, but the Biden administration really does not want to get caught flat footed the way they did with Oh Macron when

people were struggling to find tests. And there are also a number of medicines that they want to continue to promote so that when people do get diagnosed with COVID they can take these drugs, the ones that you're seeing Vice President Kamala Harris take to make sure that they're not winding up in the hospital, that they're not winding

up on the ventilators, and that they're not dying. And so these are all things that the um BID administrations say they still need, that they still need the funding for that their current funding has run out. It's absolutely an urgent thing. I think it's just at this point of question of whether it's going to have enough support to move with Ukraine. Remember, sort of playing all into this is that immigration provision, the so called Title forty two UM that really makes it much easier for border

agents to turn away migrants at the southern border. It's supposed to expire next month. Republicans and a number of Democrats do not want that to happen. They want that restriction to remain in place. That's got mixed up with the COVID funding before. If you put the COVID funding with the Ukraine funding, that could wind up with a giant political headache for for for leadership in Congress and in the White House. All right, let's move on to another big story. Obviously it's been a big one on

Wall Street and now on Capitol Hill. Elon Must and the Twitter buy out. What is the reaction in Congress? So you're hearing a lot of support from Republicans who feel like Twitter and other social media platforms have been really restrictive for conservative views. They're very pro Elon must stance that Twitter does need to honor some more free speech. Democrats, however, are concerned that potentially doing so will really open the

platform up to a lot of misinformation and disinformation. Uh And you heard Secretary uh Senate Commerce Chair, sorry, Senate Commerce Chair Maria Can't Well saying that lawmakers aren't discussing potentially holding a hearing and asking Elon Musk to come and to testify. Certainly, this is something we've seen with other owners of tech giants as well as Twitter's former chief executive Jack Dorsey, who have come up to Congress and spoken to them. Um, but you are seeing a

lot of support for this. Democratic senator at Markee, uh said a hearing will be appropriate and called Twitter a technology that is central to democracy and our economy and that lawmakers deserve to hear what it's potential new owner intends to accomplish with the platform. Just about thirty seconds left here, Emily, what's the likelihood of congressional hearings? Is

Elon Musk can appear on Capitol Hill? Well, you know, lawmakers Democrats control the process, so it's pretty easy for them to say, hey, we're gonna have a hearing, and then hey we're gonna you know, ask Elon Musk to attend. Of course, just because lawmakers call someone to attend in front of Congress does not always mean that they do so. Uh. I think it's you know, it will definitely be an

interesting development to watch. I mean, I think part of it too is that, you know, obviously the sale is not quite finalized yet, so this might not be something that happens in the near term. All right, Bloomberg Government reporter Emily Wilkins keeping an eye on all that's happening in the nation's capital. You can read more about all these stories on Bloomberg dot com or on the Bloomberg terminal. Listen to Bloomberg in Washington to hear Bloomberg Radio looking

at shares of Chevron. Little changed. Also little changed for x On Mobile after earnings that came in strong but missed Wall Street estimates. SMP futures are down thirty seven points down futures down a hundred seventy Nasdaq futures leading the declines, down a hundred fifty one points. Bloomberg Surveillance is next for Karen Moscow. I'm Nathan Hagar, and this is Bloomberg