Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
We begin with the latest on pro Palestinian college protests expanding across the country. Students at Columbia University are now occupying parts of a campus building. We get the very latest now with Bloomberg's John Tucker in New York.
Dozens of students to enter the campus building known as Hamilton Hall after midnight. They barricaded themselves inside, piling tables and chairs to block doors and covered security cameras. Columbia University remains the epicenter the demonstrations taking place on campuses
across the country and even around the world. The school is now suspending students who refused to abide by yesterday's deadline to vacate an encampment set Upollet, one of the organizers, refuses to go and call the protests peaceful and unifying.
There has been no violence on this encampment.
Students from diverse dot grounds have shared their religious observances together well protesters.
At the University of Texas campus in Austin. They witnessed a forceful response from local law enforcement and state police, some in riot gear. At UCLA, students and faculty took part in a walkout. John Tucker Bloomberg.
Radio, All right, John, thank you well. As those campus protests intensify, the White House is pressuring Hamas to accept a ceasefire deal with Israel. Secretary of State Anthony blink And has called Israel's offer extraordinarily generous. White House Press Secretary A. Karin John Pierre agrees.
Now is the time for Hamas to take this deal. It is on the table.
It is time to is way past time to get these hostages home. White House spokeswoman Karin Jean Pierre says Hamas and not Israel, as the bigger obstacle to peace. President bought and spoke yesterday with the leaders of Egypt and Cutter to put even further pressure on her Mush. Egyptian state media report A. Mush plans to give a written response to Israel's ceasefire offer, but it's not saying when.
Turning to markets, now, Karen, there is an unexpected change of the guard at one of the world's biggest banks. Let's go to London and get the details on that. From Bloomberg Daybreak Europe Banker Caroline Hepger, Good morning, Caroline.
Good morning Nathan and Karen. HSBC's COO Noel Quinn is stepping down after some five years for a portfolio career and a better work life balance. It was a surprise decision, but you can't say Quinn hasn't delivered, with record profits last year and a thirty five percent jump in the share price. As for first quarter results, pre tax profits dipped one point eight percent but beat estimates. Plus there's
that three billion dollar share buyback. The bank is now looking at candidates near and far to a place Quinn will stay on during a transition. His success's main challenge grabbing growth in Asia and managing time US China ties in London. I'm Caroline Hepke Bloomberg Radio.
Okay, Caroline, thank you. That buyback news seems to be impressing investors. Checking shares of HSBC. They are hired by more than three percent in London.
Well, Nathan, we have management changes here in the US as well. The CEO of Paramount Bob Backish is stepping down. He'll be replaced by a trio of top executives and we get more from Bloomberg's Doug Prisner.
It comes as Paramount negotiates a possible sale to David Ellison. Ellison wants to merge the company with his Skydance Media. He's been talking with Sherry Redstone, Paramount's controlling shareholder. However, some Paramount investors are against a deal. They say it would enrich Redstone at the expense of other investors. So
now the olive branch. Ellison is proposing to buy three billion dollars of Paramount shares at a premium, and Redstone is in favor of letting non voting shareholders have a say on any transaction. In terms of earnings, Paramount's results top estimates thanks to the broadcast of the Super Bowl and narrower losses from streaming in New York. I'm Doug Prisner, Bloomberg Radio.
Okay, Doug. Thanks Turning the economy. Now, the FED is beginning its two day policy meeting today. Well, just about everyone expects j. Powell and Company to stand pat on rates. Investors, including Matt Miskin at John Hancock Investment Management, expect a more hawkish tone from the Fed.
Share I think Palell's got to come in and really actually shake it up. You know, you put this into contacts. The last six months they've been way too dubbish, and they may have actually re accelerated reaccelerated inflation just from the Ford guidance that they provided six months ago. He's I think he's naturally a dove. He might have to come to the dark side a little bit and become a bit of a hawk here, and you might see a bit of a repricing in markets as a result.
It's Matt Mickskin at John Hancock that FED decision and Pale press conference. It all begins tomorrow at two pm Wall Street time.
Well, investors await the FED decision, Nathan. The barrage of earnings keeps coming in. Today we'll hear from four four dozen companies in the S and P five hundred and headlining that list is Amazon. We get a preview from Bloomberg's Tom Busby.
The big focus for investors how much the company's artificial intelligence efforts have given its Amazon Web Services unit, already the largest player in cloud services, a boost. It's also facing a lot of competition for Microsoft and Alphabets Google division. Now, this will also be Amazon's first earnings report since it introduced an ad supported tier to its prime video service
in January, creating a new source of revenue. Consensus calls for overall net revenue of one hundred and forty two point five to nine billion, about forty percent of that from online sales, earnings per share of.
Eighty two cents.
Tom buzzby Bloomberg Radio.
All right, Terren, thank you. More job cuts are reportedly on the way at Tesla. The Information is reporting Elon Musk is planning one hundreds more layoffs as two more senior executives leave the company. The fresh round of cuts comes just weeks after Tesla announced it would layoff more than ten percent of its workforce.
Nathan. While Tesla cuts jobs, Elon muskwell continues to rebound. In the past five days, must net worth has gone up more than thirty seven billion dollars according to the Bloomberg Billionaires Index. Musk add at eighteen and a half billion to his fortune yesterday alone, after Tesla's shares rose
fifteen percent on optimistic news from the Chinese market. With a net worth of more than two hundred one billion dollars, Musk is close to overtaking second place Jeff Bezos after he surpassed Mark Zuckerberg on the Billionaire's Index last week.
Well, Karen, some of Elon Musk's competitors in the automotive space are delivering disappointing numbers. First quarter sales at Stalantis, maker of Jeep and Fiat cars, slumped twelve percent, led by declines in the US. Slower electric vehicle demand in Europe was also a drag, and Stalanta's shares are down about two percent.
Nathan Mercedes Benz's earnings plummeting thirty four percent in the first quarter. The German the luxury automaker, was weighed down by model changes in sluggish ev demand, and shares are about four percent. Honest time now for a look at some of the other stories making news in New York and around the world. For that were joined by Bloomberg's Michael Barr Michael, good morning.
Good morning, Karen. A grim story out of Charlotte, North Carolina. Four officers trying to serve a warrant for a fellon wanted for possessing a firearm were killed and four other officers were wounded in a shootout. The officers killed the suspect outside the Charlotte home yesterday after he fired on them. Officers who rushed rescue the downed officers were themselves wounded
by a second shooter firing from inside the home. Charlotte Mecklenburg Police Chief Johnny Jennings was emotional when he informed the media late last night that one of the officers, Joshua Eyer, who was critically injured, had died.
He survived by his wife, Ashley, and his three year old son, Andrew. Will always be in the edited to officer Iron for his bravery.
Jief Chennings says Officer Ayer was a six year veteran of the force and just one officer of the month North Carolina Governor Roy Cooper.
There really aren't words that you can say, because obviously the families of these officers who've lost their lives this afternoon are in shock and despair.
A woman and a seventeen year old male were taken away for questioning after the three hour stand off ended. Overall crime on New York City's subway system is down six point four percent from last year's pace, as the nation's largest mass transit providers seeks to boost safety and writer confidence. According to the NYPD, there were six hundred and sixty one reported crimes this year through April twenty eighth. That's down from seven hundred and six during the same
period in twenty twenty three. The drop coincides with a fifty seven percent increase in total arrests. Britain's King Charles resumed some public duties today. Charles's return to at least some public duties is taking pressure off wife Camilla and son and heir William, who himself took family leave last month after his wife Kate revealed her cancer diagnosis as well.
No date is set for her return to public life. Finally, hot Dog City Field at tonight's Matt's game against the Chicago Cubs, fans would be able to buy Nathan's hot dogs for a dollar at the ballpark. There's a lillemit of four hot dogs per transaction or when they run out, or when you get full global news twenty four hours a day and whenever you want it with Bloomberg News. Now, I'm michae Lebarr and this is Bloomberg.
Hemon, how many does it take?
Michael barrs four?
Enough?
No? Not for me?
All right?
Oh, Michael Barry, thank you and as time now for the Bloomberry Sports Update. Here's John stash Hour John Good Morning.
Dodn't Morning care in the next received loud fans support on the road to the two games in Philadelphia. You can only imagine what it'll be like tonight at the Garden. Game five, Knicks up three one, a chance to win the series. Two series in the West ended. Oklahoma City finished a sweep of New Orleans, held the Pelicans. The thirty seven percent shooting Lakers and Nuggets. Game five in Denver, tie score, final second.
Murray has it on the high right side high picked from Yokich.
Murray schopper from me.
He's got it again, three point six second set for the Lakers.
Lebron over the Prince.
Chopper's so good at the hoard and the LA Lakers did take that hell all the way out.
On Altitude Sports, Jamal Murray wasn't sure he'd played into a strained cap. He played scored thirty two points. That was his second game winning shot of the series. The Nuggets move on and Lebron James will now decide whether to come back for another season. It would be his twenty second Already, the NBA's oldest player. Lebron said last night he has it yet.
Given it much thought.
Celtics got thirty eight points and Derek White he made eight three pointers a one h two to eighty eight win at Miami. Boston leeds series three to one. Florida Panthers advance beat Tampa Bay six to one, won the series four to one. Dallas Stars won four two at Vegas. That series tied to two. The road team has won every game. Mets and the Yankees both lost quick, low scoring games at Cityfield. Brandon Nimo a lead off home run.
Mets didn't score again. The Cubs didn't get a hit off Luis Severino until the eighth inning, but they got a two run home of the ninth from Christopher Morell off Edwin Diez to win three to one. The game is played in two hours five minutes in Baltimore. Leadoff homer for the Orioles Gunner Henderson. They later added an under and run shut out the Yankees to nothing. Zeke Elliott played seven years in Dallas, then last season in New England. He's going back to the Cowboys. Travis Kelcey.
He got a new two year contract from Kansas City. John Stashawa, Bloomberg Sports.
Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak. Good morning.
I'm Nathan Hager.
Well.
It is a surprise move in global banking. Noel Quinn is stepping down as CEO of HSBC after nearly five years at the helm, setting off a sudden process to find a successor to lead Europe's biggest bank for more. We're joined by Bloomberg's Charlie Wells. Charlie, good morning. As I mentioned, this did seem to come as quite a surprise to a lot of investors. Do you have any better clarity on why Noel Quinn decided to step down? Now?
Yeah, Nathan, no one saw this coming. I mean last year, Noel Quinn's pay was actually doubled, so there were just not telegraphs coming out of this bank that this could potentially happen. And now what Quinn said is that he wanted to find a more a better personal work life balance. He said that he wants to embark upon a portfolio career.
We're not entirely sure what that means, And in comments from executives this morning from HSBC, they haven't given us a lot of indication of why or who could have potentially come next. But we do know that whoever comes next is going to have some pretty big shoes to fill because Quinn was actually at the helm of this
bank for almost five years. He led it through the height of COVID, he led it through a key shareholder trying to break the bank apart, he successfully funded that off, and he led HSBC through a period of heightened tensions between China and the West. So, as I said, pretty big shoes to Phil.
Yeah, certainly. And when you think about heightened tensions between China and the West, that gets into the focus that Noel Quinn had during his tenure to pivot attention to the Asia business and sort of diminish some of the more established businesses at HSBC in the US and Europe.
That's exactly right. I mean, HSBC is looking to diversify. So they are a bank that is very reliant on interest rates. They're very sensitive them, and you know recently that's been a huge boon for the bank. You know, their net interest margin, what beat expectations in this first quarter. Ostensibly that's what we were all going to simply hear about today, but of course we're not hearing about the
CEO move. But look, they are pivoting to Asia. They have been under Quinn, and one focus here is wealth management. And in these earnings today we got some kind of better numbers on wealth management for HSBC, So that bodes well. But this is going to be a big challenge for whoever succeeds Quinn.
Yeah, and I guess we got better numbers just overall. And plus this three billion dollar stock buy back, I mean, is that kind of overshadowing or being overshadowed by this succession news that suddenly came out.
Yeah, so shares have been trading up a couple percentage of a couple percentage points, which is great, you know, great for the stock. And look, I mean, analysts have been talking before these results about a potential two billion dollar buy back, and let's not forget that in February there was a previously announced two billion dollar buyback, So three billion, you know, is bigger. And it does show that over his tenure, Quinn has been able to return
access capital to shareholders. So that's going to again be a big focus. Can this continue?
A lot?
Lot of analysts have said that some of that capital return is already kind of baked into some of this share price. Something disappointing that I also should mention for some observers of this stock though, was that forward guidance for HSBC remained the same as it was in February, and so the hope was that in an environment where you know, rates are looking like they could be higher for longer, that should have voted a bit better for this bank. So that was a little bit of a disappointment.
Only about thirty seconds left, Charlie. But whoever fills Noel Quinn's shoes, can we expect much of a change in focus, a change in strategy from the new CEO at HSBC.
It seems like what the bank is trying to communicate to analysts and investors is that there's going to be a degree of continuity. So they have made clear that you know, Quinn will be a part of this process. They've said that they want to try to find a successor in the latter half of twenty twenty four. There's a world in which Quinn could actually stay into his
position well into twenty twenty five. And so what that seems to indicate is they want to keep the strategy again, a focus on that pivot to Asia going strong, and they're trying to communicate pat Today.
This is Bloomberg day Break, Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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