Bloomberg Daybreak: January 26, 2023

capitol of Ukraine. I'm Michael Blader. More ahead, I'm John stash Our sports the Nets, Rangers, Islanders and St John's all lost. They're playing the women's semifinals at the Australian Open. That's All's Tradyhead on Bloomberg day Break on Bloomberg eleven three, on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one Boston, Bloomberg nine sixties and Francisco Sirius x M one nine team and around the world on Bloomberg Radio dot Com and via The Bloomberg Business. Good morning.

I'm Nathan Hagar, and I'm kerin Moscow. Here are the stories we're following today. The lift in nastac futures this morning follows an earnings beat from Tesla. Those shares are up nearly seven percent in early trading. Let's get the latest live with Bloomberg. Steve Rappaford, Good morning, Stu, Good morning,

Nathan and Karen. Better numbers and a better forecast are driving Testlas stock in pre market trading after the electric automaker top fourth quarter expectations and said it's on track to deliver about one point eight million vehicles this year, representing a production boost of about thirty eight percent. If the pre market gains, hold shares will rise more than fifty percent from a January sixth low. As of yesterday's closed, the stock is down six from its all time high.

Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you well. IBM is also out with earnings and job cuts. Fourth quarter revenue was unchanged at sixteen point seven billion dollars. IBM also said it will eliminate about one and a half percent of its global workforce. That's about thirty d jobs. We're also watching shares of Chevron this morning, care and they're up two and a half

percent in early trading. The oil giant plans to buy back seventy five billion dollars in shares after reaping record profits last year. Bloomberg's Charlie Pellett has the story. The stock repurchase program will kick in April one and will be triple the size of the previous authorization unveiled in early twenty nine. Chevron also will pay investors a dollar

fifty one to share dividend on March tenth. Big oil rep record profits last year after Russia's invasion of Ukraine, as oil, natural gas, and crude refining margins surged and Western governments sought to isolate the Vladimir Putin regime. Chevron reports fourth quarter results tomorrow in New York. Charlie Pellett Bloomberg Daybreak, Great, Charlie, thank you well. Ernie's continued to roll in, with more than two dozen companies in the

S and P five reporting today. Intel is one of the bigger names on the list, and we get a preview from Bloomberg's Jeff Bellinger. Analysts are not bullish about Intel, given the weakness in demand from the personal computer and data center markets and the fact that the company cut its annual forecast twice in the second half of two Bloomberg Intelligence, As the chip maker may report sequential declines

in both its client and data center segments. Investors may pay more attention to Intel's twenty three guidance than the numbers from the holiday quarter. They'll want to know, among other things, whether cash flow will be strong enough to maintain the quarterly dividend. Jeff Bellinger, Bloomberg Daybreak, Thanks Jeff. Turning to the economy, now we get important data from the US today. The government issues fourth quarter GDP, and

economists anticipate a respectable showing. Bloomberg's Any Dell Judais reports the economist for forecasting the US economy expanded at two point six percent pace in the closing months of last year, boosted by household spending on services. Bloomberg Economics is any Americans are benefiting from wage games and money stashed away during the pandemic. Looking ahead, economist survey by Bloomberg anticipate US economic growth will drop by point six percent this

quarter and by point three percent next quarter. Also on today's US data Agenda, forecast call for decent numbers on jobless claims and durable goods orders. But I drop in new home sales. Finny Deal Judae Spoomberg day Break, Great, Pinny, thank you. Well, as we await that reading on economic growth forecast for a recession, remain front end center strategist like bank you chat at Deutsche Bank are still predicting

a contraction. Very important aspect of the recession playbook. To keep in mind if you're thinking about twelve months, is that equity is you know, pretty robustly bottom about halfway through. So if you have a two quarter recession, they will come all the way back basically in Q four. And so my Q on target is my year end target, and that year on target from Deutsche Bank chief global strategist bank E Schota is forty five hundred for the

SNP five. Well, Karen, we have new developments this morning involving that computer glitch at the New York Stock Exchange. Bloomberg News has learned the problem has been traced to an employee who left a backup system running. That mistake triggered wild market swings involving more than two fifty companies. Thousands of trades were canceled, and the cost of the issue has yet to be determined. Well now to the

intersection of technology and politics. Nathan, there's word that Meta Platforms is going to end the suspension of former President Donald Trump at Baxter has the story from our Bloomberg nine Sis room in San Francisco. This ends two years of being banned. Meta says from the beginning it was for an undetermined amount of time, and that the public should be able to hear what their politicians are saying, the good, the bad, and the ugly, so they can

make informed choices at the ballot box. At the same time, now, Meta says it has changed oversight rules that can cause another suspension of violated with more severe penalties. Meta says it will restore the accounts in the coming weeks. In San Francisco, I'm at Baxter Bloomberg Daybreak. All right, thank you. Turning overseas, we have a change at the top at Toyota, the Japanese automakers promoting Lexus president Koji Sato to CEO.

Sato's job will be to guide the company through the challenges of electrification and automation, and the hottest job in the market right now, Nathan might not just be truck drivers and nurses. Overseas, the biggest need for many companies is for chief financial officers. According to the executive search firm Spencer Steward, openings for CFOs are up nearly a third compared to last year. Companies are asking for more from their finance directors, with inflation and higher interest rates

signaling the end of easy money. Straight ahead, we have your latest local headlines and this is Bloomberg. Thank you, Karen. It is forty nine degrees in Central Park. We'll have sunny breaks this afternoon. It's gonna be breezy and brisk, partly cloudy tonight, heading down to the thirties. Time now to take a look at some of the other stories making news in New York and around the world with Bloomberg S. Michael Bark, Good morning, Ancael, Good morning Nathan.

Ukraine faces what appears to be the eleventh major barrage of Russian missile strikes since early October, aimed at energy, infrastructure and other civilian targets. Explosions were heard in Kiev, with at least one person reported killed in the capitol. Strikes were also reported in Odessa and other regions. It comes after President Biden announced yesterday and the US will be sending more than thirty of its best tanks, the M one A two Abrahms, to Ukraine. There's no offensive

threat to Russia and Prussia troops returned to Russia. They'll be there wherever they belong. This war would be over today. Germany also said yesterday it would send its Leopard two tanks to Kiev. New York Mayor Eric Adams would deliver his State of the City addressed today. Adams is expected to talk about several issues, including the homeless situation and crime. He will also discuss the economic situation of the city.

Adams will give his speech in Queen's at noon. New York State Attorney General Letitia James is raising concerns about Madison Square Garden using facial recognition technology to keep out people who work for anybody suing the company. James also questions whether the facial recognition software that MSG uses to identify individuals is reliable, citing research that suggests the technology

may be biased against people of color and women. MSG defends the band and opposes a bill introduced by New York state lawmakers to prohibit sports venues some refusing entry to perceive enemies of their owners. Investigators in Monterey Park, California, are still trying to find a motive for Saturday's shooting

in a ball room that left eleven people dead. According to Los Angeles County Sheriff Robert Luna, the suspected gunman seventy two year old who Contron was not married, and they have found no signs he was romantically connected to any of the victims. Based on the interviews the investigators are still conducting, uh, they have not been able to establish a connection between the suspect and any of the victims thus far, Sheriff Luna says Tron later killed himself

after the mass shooting. Global News twenty four hours a day on a or and on Bloomberg Quick Tank, powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries. I'm Michael Barren. This is Bloomberg, Nathan. Thanks Michael. It's time for a Bloomberg Sports update, brought to you by Trice stayed out here with John stash Our.

Thanks Nathan, Nets and sixers. About a year after they swung that big James Harden for Ben Simmons trade, hardened some Herobic standard stretcher in Philadelphia Want a high scoring affair one thirty seven, one thirty three. This game was tied at forty one after the first quarter. Seth Curry was also in that trade. Day led Brooklyn with thirty two points. The Nets for two and five without Kevin

Durant Neicks. Tonight visit the league leading Celtics Rangers in Toronto had a lead with five minutes left, but the game went to overtime. Who's decided earlier comes on and comes in front of that star, dresses to Rangers, cuts across the gold Cres head up wait Sister come to win the game eighteen seconds into overtime and three two leaves Philippino both the Ranger Girls. Islanders struggling to score just eighteen goals in their last eleven games, and ten

of those were losses. They fell to one at Ottawa. St. John's went to omahaal at crateon score fifty two points in both halves. Red Storm got trounced one oh four seventy six four to one at St. Bonaventure. The Rams are sixteen and four. The Giant Brian Brian Dable named a finalist to win Coach of the Year. Set Juan Barkley of finalists for the Comeback Player, and two Jets

could win the Rookie Awards. Garrett Wilson on offense, Sauce Gardner on defense, Women's semifinals at the Australian Open, and Elena Arrivaquina has won the first set from Victoria Azararenka. They'll be followed by Arena Sablanca versus Is magdal Lenette,

who was unstated. She's already beaten five senior players. John stash Allen Bloomberg Sports live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius XAMP, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar. As we continue to watch shares of Tesla this morning. They're up more than seven percent after profits came in better than expected in the latest quarter for the electric

vehicle maker. But Elon Musk's company is sending some mixed signals about future delivery. So let's get into these numbers now. We're joined by Bloomberg News Automotive editor Stefan Nicholas Stefan good morning, Thanks so much for being with us. UH. The company says it is on track to deliver about one point eight million vehicles this year, but it's talking about getting back to its long term target as soon as possible. That's like fifty percent is the number they

keep talking about for annual growth over multiple years. One point eight million v equals isn't quite there, right, Yeah, that's correct, Good morning, that's correct. One point eight million cars isn't quite there. Um, it's just over thirty percent. And that's still though a decent increases, especially given the UH concerns about demand. Late last year, um Tesla lowered prices for its cause in several of its markets and

and that will will help demand. Also, Elon Musk said during the call that in January demand was at twice the rate of production, so that that's some some good news for demand. UM. But yeah, the target is still a bit elusive. Well, how realistic, Stefan, is that production or that demand expectation for Elon Musk, given that over the last few months he's been talking about the idea

that recession is pretty much inevitable. Yeah, so and he mentioned, you know, some of those concerns during the call as well high interest rates, a potential recession um and relation in parts of the world. Um. He also said that you know, technically they could deliver two million cars. That's not their their goal, but it's it's a technical possibility. I think a lot of things will have to happen. Um. You know, production will have to be ramped up at

several of Tesla's key factories across the world. Um, we can't see another components shortage crisis like the semiconductor crunch that we saw last year. And you know, it also depends a bit on how Tesla's brand will develop this year, especially given Elon Musk's um mixed track records, especially when it comes to buying Twitter and his handling off the social media company. Yeah, certainly that does seem to be

a pretty significant headwind for a lot of investors. With the focus on Twitter right now, What is the expectation that Elon Musk will be able to sort of triangulate his attention with Test and Twitter. So, I mean, Ellen

is you know, known for not needing a lot of sleep. However, the past months, you know, he has he has seemed a bit distracted and uh, um, while he on the call was quite bullish about Twitter, saying that you know, it's a great it's a great platform for the for his brand, and and you know he touted his twenties something follow million followers on Twitter. Um, you know, there there still is concerned that too much of his time

goes into fixing the platform. And two little time is is being invested in overhauling Tesla's product lineup, which is lacking in some respects. Um, the cybertruck is going to start production this year, but volume production won't won't happen until four Let's see what the semi big rig does this year. So lots of question marks on the Tesla

site that he needs to get around to fixing. Now I means, did you mentioned cybertruck, stefan, I mean, this is a product that Elon Musk has promised year after year after year, and the target to introduce it keeps getting pushed back. I mean, what's the likelihood that the cybertruck actually does get delivered next year? So? Um? Hell so he did say that, you know, the the cyber truck will start production sometimes this summer. Um, that that's

obviously produced in Austin. Um, but that that's you know, it's not clear how many units that factor will make this year, but volume production won't happen until four UM. I would suspect that's more to it the later later half of that of that year. UM. On the semi you know, Tesla plans to invest in a Nevada facility to scale up production. But yeah, you you've rightly mentioned the cybertruck a sort of the big thing next thing.

You know, some people are very excited about that model at the same time, and Tesla is on the pressure to deliver on the ind of in the pickup market. Forts F one, fifty Lightning and the Ribbian models as well as the GM Silverado that's coming later this year, have some somewhat of a hit start. So yeah, it's under pressure to to get you a big part of that very lucrative pickup market. This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall

Street to Washington and beyond. Look for us on your podcast feed at six am Eastern each morning on Apple, Spotify, and anywhere else you get your podcasts. You can also listen live each morning starting at five am Wall Street time on Bloomberg eleven three oh in New York, Bloomberg in Washington, Bloomberg one oh six one in Boston, and Bloomberg nine six in San Francisco. Our flagship New York

station is also available on your Amazon Alexa devices. Just say Alexa Play Bloomberg eleven Plus listen coast to coast on the Bloomberg Business app, Sirius XM Channel one nine, the I Heart Radio app, and on Bloomberg dot Com. I'm Nathan Hager and I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak