Elon Musk's 'Master Plan' Falls Flat and More Cracks in the Crypto Market

rebate checks start going out this month. I'm John Stagshaward sports seven straight wins for the Knicks. They blew out the nets at the Garden Road winds for the Rangers and Devils. That's all straight ahead on Bloomberg day Break, The business news you need disturn your day, and just one fifteen minute podcast each pointing on Apples, Spotify, the Bloomberg Business Appen everywhere you get your podcasts. Good morning, I'm Nathan Hager and I'm Cameron Moscow. Here are the

stories we're following today. We begin with a selloff in Tesla shares this morning. They're down more than five percent. Elon Musk's much hyped master plan fell flat with Tesla's investors. The four hour presentation on Investor Day failed to offer any firm detail on the company's next generation of electric cars. Musk did, however, Tesla's leadership in artificial intelligence, so as we solve real world AI. I don't think there's any I don't think there's anyone even close to Tesla unsolving

real world AI. Elon Musk did confirm a new plant in Mexico will build Tesla's next generation of vehicles, but he didn't offer details on timing well. The decline in Tesla's shares not helping market sentiment. This morning, Nathan stocks are lower around the world, and yields on ten year treasuries or above four percent for the first time since November. More central bankers, like Minneapolis Spent President Neil cash Cary are hammering home the message that rates will keep going up.

I'm open minded at this point about whether it's twenty five or fifty. Basis points to me much. What's much more important than whether it's twenty five or fifty is what we signal in what's called the dot plot. And cash carry in. The FED raise rates by twenty five basis points at their last meeting. Markets are currently pricing in three more hikes of that size. Another note on central banks this morning, Karen brings us to the Federal

Reserve Bank of Chicago. It turns out the search firm it hired to find a new president includes the wife of Austin Gulsby among its executive Schoolsby was ultimately picked for the role. He took over leadership of the bank in January and is now a voting member of the FED. The Chicago FED spokesperson says, quote, we have every confidence in the integrity of the search process. Well in Europe, Nathan,

looks like rates will continue to go up. BCB president Christine Lagard told a Spanish TV show that interest rate increases may need to continue beyond a planned half point move two weeks from now. Laguard said policymakers will do everything to return inflation to their two percent target. And following those comments, Karen, we're getting fresh inflation data out of the EU, crossing the Bloomberg just moments ago. Euro

area inflation rows. Last month, consumer prices were up eight and a half percent compared to an estimate of eight point three percent. While staying in Europe, we're taking a close look at Credit Suite this morning. We're learning the bank is escalating efforts to win back clients, and we get the story live with the Bloomberg's UIN parts in London. Good morning, Uen, Good morning Karen and Nathan. If you've got five million bucks to deposit, then Credit Suiee wants

your business. After unprecedented outflows in the latest quarter, Bloomberg has learned the Swiss Bank has raised three month rates in Asia too, as much as about six and a half percent for new money. That's close to one hundred basis points more than it was offering in December. It's also high the rivals, including Ubs, JP Morgan and Citygroup a clear signed Credit Suite wants to rebuild assets in the region. In London, I'm you and Potspenbag daybreak, All

right you and thank you. Back here in the US shares of Salesforce, you're up nearly fifteen percent. That's after an upbeat forecast for the coming year. We caught up with Chairman and CEO Mark Benioff as we really focus on our performance, on our profitability on the reprioritization back to being a core CRM company. It was really time to put the M and A committee on ice and just mitigate what we've been doing with M and A and let's focus more on our core Mark Benioff's also

praising activist investors for piling into Salesforce. The CEOs enjoying a victory lap with these strong results after those very same investors pushed for changes at Salesforce over the past few months. Well. We've also been speaking with the CEO of Chevron, Nathan Mike Wortz says rising Chinese oil demand and dwindling spare capacity around the world may push crewd

prices higher this year. All the leading indicators would suggest that economic activity is picking up, energy demand is picking up, and I think as we get into the middle of this year and certainly into the second half of these year, that demand is likely to tighten markets a little bit. Chevron CEO Mike Worretz says China's reopening will provide steady demand growth through the year. And checking oil right now, nimex screwed oils up half percent or thirty seven cents

at seventy eight dollars six cents a barrel. Brent is up four tents of a percent at eighty four dollars sixty four cents. Now, we've been speaking with the CEO of coin Base Global, Brian Armstrong, is pushing back at SEC efforts to regulate the crypto exchanges so called staking product. In coin bass case, our staking product is not a security.

There's many differences. I mean, we customers never turn over their assets to coin Base, for instance, They're always in the customer's possession, and we're really just providing a service that passes through those coins to help them participate in staking, which is a decentralized protocol. Brian Armstrong says Coinbase received investigative subpoenas from the SEC about staking. It works by letting users generate yields in return for using their tokens

to facilitate blockchain transactions. Well, staying in the crypto world now, Nathan, there are concerns of another crypto firm collapse. Shares of Silvergate Capital are plunging on news it's delaying its annual report. We get the details live with Bloomberg Steve Rabiport. It's Steve Goodman. Good morning, Karen and Nathan's silver stocks sank as much as thirty two percent in pre market trading after the firm said it's studying its status as a

growing concern. Silvergate says the delay is necessary to review financial controls and to assess the damage from the collapse of FTX. Many Silvergate customers pulled out after FTX went belly up late last year. The company already reported a one billion dollars loss for the fourth quarter and warned that number could climb higher. Live in New York, I'm Steve Rappaport Bloomberg Daybreak. It's forty degrees in New York. It's going to be sunny this afternoon, breezy and milder

with a high year sixty. Clouds build in tonight. We'll get down your thirty five time now to look at some of the other stories making news in New York and around the world with Bloomberg's Amy Morris. Good morning, Amy, Good morning Nathan. New York City advocates are outraged NYPD

representatives failed to show up at yesterday's oversight hearing. Instead, the department submitted written testimony as council members spent hours listening to public concerns over the departments Tegic Response Group. There's a lot of people here who I wanted to talk to, and then I hear I don't understand that we have to have this whole bureaucracy to hold them accountable,

and they don't even show up. In a statement, the NYPD wrote that in part, it is committed to changing its practices, but opponents say the SRG commits acts of violence without being held accountable. Now this after the city agreed to pay nearly seven million dollars to more than three hundred demonstrators who were mistreated during a twenty twenty protest against police violence. The anti protest practice, known as kettling, boxed in racial justice demonstrators and then hit them with

batons and pepper spray. New York City agreed to pay twenty one five hundred dollars to each protester involved. Now, with the judge approves, it will cost the city between four million and six million dollars. Chicago's police chief announced his resignation just today after Laurie Lightfoot became the first mayor of the third largest US city to lose a

re election bid in forty years. Police super into David Brown says he'll leave his post effective March sixteenth and will take a job as the chief operating officer of a personal injury law firm. Chicago is faced with rising violence that sparked outrage among residents and business leaders. Roughly one point seven million homeowners and renters will be benefiting from one of the largest tax relief programs in New Jersey's history. Yesterday was the deadline for homeowners and renters

to fill out forms for the Anchor Rebate program. Governor Phil Murphy says homeowners with income up to one hundred and fifty thousand dollars, we'll receive a fifteen hundred dollars rebate in the spring. Renters get a four hundred fifty dollars rebate. And SpaceX has launched four astronauts to the International Space Station four NASA. The Falcon rocket launched from Florida's Kennedy Space Center early this morning. The Dragon capsule

should reach the space station by tomorrow. Global News twenty four hours a day, powered by more than twenty seven hundred journalists and analysts in over one hundred twenty countries. I'm Amy Morris. This is Bloomberg Nathan, Thank you, Amy. Time now far Bloomberg Sports Up. They brought to you by Chris stayed Autie. For that, we bring in John stash Hour. Thanks Nathan. The Nicks and Nets close to each other in the standings, but that's because the Nets

used to have Kevin Durant Kyrie Irvy. Of course they no longer do, and it doesn't appear they'll remain close as these two teams are clearly going opposite ways. Nets have lost Fournow eight of their last ten. Knicks have won their last seven, yet to lose since they made that trade to get Josh Hart from Portland. At the Garden, it was all Knicks a forty seven point first quarter when they shot seventy eight percent eighty two percent on

three pointers. The final was one forty two to one eighteen. Jalen Brunson scored thirty nine points, all but nine came in the first half. It he took four shots in the second half. Cam Johnson led Brooklyn with thirty three. Tomorrow Knight, the Nets go to Boston Celtic's one last night over Cleveland. The Knicks will play Tomorrow night in Miami. Durant played for the Suns last night for the first time back from his knee injury that he's suffered while

with Brooklyn. He scored twenty three and a Phoenix win at Charlotte, Milwaukee won again. That's sixteen wins in a row for the Bucks. Rangers in Philadelphia because advantage had a first period goal on the power play his thirty second. Chris Cryder scored his twenty six. They went to overtime. It's played by Hedel the Tarasenko between the circles. Tarrasinco fires that scores. Vladimir Tarasenko, his third goal as a Ranger, lights the lamp for the Blue Shirts three to two

victory and overtop ESPN New York had the call. Tarasenko a recent acquisition. Patrick Kane an even more recent acquisition. Kane will make his Rangers debut tonight at the Garden against Ottawa Devil. Seven different goal scorers won seven five at Colorado. Fordham lost in overtime at George. Mason started the Northeast Conference Tournament season, ending losses for Wagner LYU

and Saint Francis. Notre Dame upset Pittsburgh. It was the last home game for long time Notre Dame coach Mike Bray, John Stasheward, Bloomberg Sports Live from coast to host from New York to San Francisco, Boston to Washington, DC nationwide on Sirius Exam, the Bloomberg Business App, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar. Milon Musk has unveiled his third master plan for Tesla, and so far, so far, it does not seem to be

falling too well with investors. Right now, Tesla shares are down more than five and a half percent after a lot of talk from the gigafactory in Austin about a sustainable energy future for the planet, but not much in the way of specifics. For more, We're joined by Bloomberg

Global Autos editor Craig Trudell. Craig, good Morning. Was a four hour presentation, and I mean, arguably you could say that Tesla did deliver on at least putting out a message about the sustainable energy future, because there was certainly a lot of talk about that. Yeah, I think the beginning of the presentation was definitely heavy on details. There sort of calculations of what it's going to take along with you know, some hints of of Tesla's role and

that obviously everyone knows. Uh. You know that that you know, they have the cars, they have the battery storage products. Uh. There was there was a suggestion that they may get

into making key pumps for homes. But you know, the big news that was sort of anticipated was a next generation vehicle that the company has alluded to uh in the past few months and really even more than two years ago when they held their battery day, they talked about, you know, a much cheaper model, a twenty five thousand dollar car. Uh. There there was really very little in the way of details there, uh, and that you know, sort of left left the crowd hanging. I think that

is the big reason why we're seeing the reaction this morning. Well, we're investors expecting too much from an event like this. Was this the right venue for analyst to hear about things like a lower priced sedan or specifics about Tesla's

model lineup going forward. I think it's honestly hard to say, because you know, you never really know what Musk is going to do, right, and and I do think that you know, when you sort of tout the event as you know, the plan for transitioning the world to sustainable energy, you know clearly a low price electric car would play

a big part in that. And so I do think that, you know, the expectation of something on that product was understandable, and you know that that helps explain why there there's been such a letdown in terms of, you know, how the investors are digesting this. It was interesting as well during this presentation to see Musk put forward a lot of executives, more than a dozen of them, some of whom investors have never really seen before. What does that

say about the leadership at Tesla? Yeah, you know, I think that's a very clear response to the criticism that Musk has gotten and that the board has gotten about. Uh, you know, who's who's behind Musk and what happens to this company? You know, if and when he moves on. I don't think there's any expectation that you know, he wants to leave ut Tesla. But of course we know he's stretched awfully thin. He was already running several other

companies before he acquired Twitter. Uh, and I think he provided some fresh evidence of just how distracted he is by that company by tweeting during during the presentation when some of his executives were speaking, and so, uh, you know, I think there was there was clearly an attempt there to show uh, you know, some of the talent on the bench for for Tesla to sort of address some

of some of that criticism. So is there anything, Craig that you heard from the presentation that investors can hang their hats on when it comes to Tesla's immediate plans. I think one of the things that was really interesting, you know, to the extent they did talk about that their next generation vehicle, they've talked about the drive unit not using rare earth metals. Since so we've seen uh miners of those metals react in a really substantial way

that that isn't a huge shock. We've heard automakers like BMW talk about efforts to get rid of rare earth. Um, you know, in addition to uh this being you know, sort of a dirty process mining those they're expensive and and uh you know rare is in the name, right, and so uh it's not necessarily a shocker that they're going in that direction, but uh, definitely, um, you know, judging from the reaction and shares of those companies that

came as a bit of a surprise. I think they also interestingly talked about, uh, you know, lithium refining and and sort of their reluctance to get into the business of mining lithium if they can have avoid it, but that they do see you know, real sort of stress in the refining space and that they're going to jump into that to help play a role in sort of sorting out that bottleneck. 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 zero in New York, Bloomberg ninety nine one in Washington, Bloomberg one oh six one in Boston, and Bloomberg nine to sixty in San Francisco. Our flagship New York station is also available on your

Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus listen coast to coast on the Bloomberg Business app. Serious XM Channel one nineteen. The iHeartRadio app and on Bloomberg dot Com. I'm Nathan Hager and Aaron Moscow. Join us again tomorrow morning for all the news you need to start your day, right here on Bloomberg Daybreak