From the Bloomberg Interactive Brokers Studios. This is Bloomberg day Break or Wednesday, April nineteenth.
Coming up today, a last minute settlement in the voting machine defamation case against Fox News.
Disney and Meta start cutting thousands of jobs as soon as today.
We're tracking Netflix shares after subscriber growth disappoints.
And House Republicans prepare a vote on a bill to raise the deadlimit.
At least one person is dead after a parking garage collapse in Manhattan. Plus a big ruling from the Supreme Court today involving a common abortion drug. I'm Michael bar Or Ahead, I'm johns stash errand towards.
The Knicks lost game too in Cleveland, The Rangers one game one from the Devils.
The Mets and Yankees both lost.
That's all straight Ahead on Bloomberg day Break, the business news you need to sturn your day in just one fifteen minute podcast each morning on Apples, Spotify, the Bloomberg Business Appen everywhere you get your podcasts.
Good morning, I'm Nathan.
Hager and I'm Amy Morris. Here are the stories we're following today.
We begin with a landmark settlement in dominion voting systems defamation lawsuit against Fox. Bloomberg's Ed. Baxter has the very latest.
The agreement reached just hours after the jury was seated and just before opening arguments. Dominion CEO John Poulus.
Fox has admitted to telling lies about Dominion that caused enormous damage to my company.
Dominion attorney Justin Nelson says, very important as well.
For our democracy to endure, we must share a commitment to facts.
For Fox, it avoids an embarrassing trial. You won't see the personalities on the stand. It says it is a validation of its journalistic principles. In San Francisco, I'm at Baxter Bloomberg Daybreak.
Thank you, Ed. Job cuts are continuing across corporate America, and two big names on Wall Street are getting ready for layoffs as soon as today. We get the latest Live with Bloomberg's John Tucker, John and Amy.
They are household names and they're cleaning house. They are Disney and Facebook parent Meta platforms. Let's start with Meta. Those layoffs start today and they are company wide. This move is part of a cost cutting push that will eventually whittle away ten thousand positions. Metta's got experience doing this. They slashed eleven thousand jobs in November to ease the pain. Meta wants everybody in the US to work from home today, and now Disney they're cutting thousands with a whopping fifteen
percent of its entertainment division that starts next week. The cuts will span TV, film, theme parks, and corporate positions and in fact, every region where Disney operates. Disney wants to save five point five billion dollars in costs. Live in New Yorkcome John Tucker, Bloomberg Radio.
Okay, John, thank you.
We know.
Turning two earnings on Wall Street, investors and analysts continue to adjust the latest results from Netflix. The shares dropped as much as twelve percent after hours. Now they're down about three quarters of one percent. The streaming giant reported lower than expected subscriber gains at the same time, it's starting to crack down on US viewers who share accounts. Netflix says that should boost growth in the second half. Right now, subscriber growth is not the focus for Gradient Investments.
Senior portfolio manager Mary and Montagne.
I think I'd be more interested in profitability and the fact that we're in a year where we're comparing against still some COVID impact in different parts of the world. I would say that we need to stop focusing on the subscription growth and really focus on, as I said, free cash flow growth.
Mary and Montane and Gradient Investment says more than one hundred million people currently use a Netflix account they do not pay for Nathan.
Big Bank earnings continue today. Morgan Stanley reports this morning, and we get a preview with Bloomberg'sjeff Bellinger.
And the lists and investors will zero in on the area where Morgan Stanley has its heaviest focus, revenue from the trading of equities that outweighs fixed income, currencies and commodities at the bank. Jeffreys Financial Group estimates first quarter industry trading volumes for equities. We're down seven percent from the prior first quarter. We'll see the numbers before the market's open this morning. Jeff Bullinger, Bloomberg Day Break.
Thank you, Jeff. Let's turn to politics now and the latest on the fight over the dead ceiling. House Republicans plan to vote next week on a bill to suspend the nation's borrowing cap for a year and bring deep cuts to government spending. It'll be crucial for Speaker Kevin McCarthy to get his thin majority behind this bill. That's according to Douglas Holtzeken of the American Action Foreign Policy Institute.
They have to.
Coalesce and they have to lay down a market that says this is what we want and this is what we can pass. And if they do that, you know, it goes over to the Senate. At that point, it's impossible for the White House not to engage and give the majority leader in the send some guidance about how they should modify the legislation, and then there's really going to be a serious negotiation.
Douglas Holtzeke and spoke with our Washington correspondent Joe Matthew on Bloomberg Sound on. Catch the show weekdays one pm Eastern on Bloomberg Radio, or listen on demand wherever you get your podcasts.
And overseas this morning. Inflation continues to be a major problem in Britain. The UK's consumer price index rows ten point one percent from a year ago, driven by the strongest increase in food prices in more than four decades. Economists set expected to slow down to below ten percent. Bloomberg Economic correspondent Lizzie Burden has more.
Was kept high by food and non alcoholic drinks. That's going to be very painful for your average brit who, of course spends more on essentials as a share of their income. In fact, the annual rate of inflation for those goods is its highest since nineteen seventy seven. So another course appoint hike from the Bank of England looking pretty much nailed on next month.
Bloomberg's Lizzie Burden says the Bank of England's next meets on May eleventh. Traders now predict two consecutive rate hikes in both May and June. They also see a peace interest rate from the BOE hitting five percent. That's up a full percentage point from the current level.
Amy, we're getting word of more price cuts at Tesla. The electric vehicle maker is marking down the sticker price on its long range model YSUV by five point six percent. It'll now come in at roughly fifty thousand dollars. The cost of a base Tesla Model three is being cut by four point seven percent. That will now cost about forty thousand dollars. Tesla reports its latest quarterly earnings after the closing bell straight ahead. We have your latest local headlines,
plus a check of sports. You're listening to Bloomberg Daybreak. It's forty five degrees in New York. We're expecting sunshine today and highs in the upper sixties. Time out to take a look at some of the other stories making news in New York and around the world with Bloomberg S Michael bar Good morning, Michael.
Good morning Nathan. We're learning more about the deadly building collapse in Lower Manhattan. Witnesses say the four story parking garage pancake without warning yesterday, sending car, some men and people crashing down to a basement. One garage worker was killed and five others survived. This man works nearby.
We heard a big boom, like something like out of the ordinary.
It just was a really loud noise like something exploded, and I saw people running out quickly from the scene.
New York Flying Department Chief of Operations John Espositos said the building was deemed to be unstable and firefighters had to pull out. As Posito says, though the department's robotics happened to be nearby at the time, we.
Deployed our robot dog into the building they were able to give us a video inside, and then we were able to fly our drones inside to conduct an assessment and conduct searches.
Police Commissioner Keitchen Seles says there will be an investigation, but we have no reason.
To believe that this is anything other than.
A structural collapse.
Records show the parking garage had sixty four violations since nineteen seventy six. Today, the Supreme Court is expected to decide whether to allow a ruling by a conservative Texas judge to stand drastically limiting access to MiFi pristone, the most common abortion medication in the country. It was approved by the FDA more than twenty years ago. International human rights lawyer Paua Alvia Gien is the executive director of the Women's Equality Center.
A question that the Court needs to resolve eve the authority of FDA is an authority, for instance, a federal josh in this case in Texas, cool overright.
The case comes less than a year after the Conservative majority overturned Roe v. Wade. Massachusetts Air National guardsman Jack to share a charge with leaking highly classified military documents is due back in court today for a hearing to decide whether he should remain behind bars while he awaits trial. More than one hundred and fifty five thousand federal workers in Canada are on strike after wage talks with Prime Minister Justin Trudeau's government failed. The labor disruption is expected
to impede government functions, including passports and immigration applications. Global News twenty four hours a day, powered by more than twenty seven hundred journalist and analysts in over one hundred and twenty countries. On Michael Bahar This is Bloomberg, Nathan.
Thanks Michael. Time now for our Bloomberg Sports update. For that we bring in John Stashauer. Thanks Naith In.
This Knicks caz series figures to be a long one. Not a surprise that after the next pulled out Game one in Cleveland, they were unable to win games two. The surprise was the ease with which the Cavs won, up by twenty points in the first half. Cleveland won going away one oh seven to ninety. Donovan Mitchell, who scored thirty eight points in that game one, had less
than half that that. The slack more than picked up by Darius Garland, who poured in thirty two points, made six three pointners, Chris Lavert off the bench for twenty four The Knick shot just thirty seven percent and they had seventeen turnovers. Game three Friday at the Garden, also in the NBA home wins for Boston and Phoenix as poorly. The next play, that's how well the Rangers played in the Jermsekin.
Baller knocks it back out to center ice, but Tatar brings it back in battles there with Bursula's slides back out to Miller, Miller out to the wing.
With a shot on the floor between.
The circles the Rangers as It's Vladimir Tarasenko to get the first goal the postseason for the Rangers and they take one another.
Lead on ESPN.
New York Rangers went on to beat the Devils five to one a pair of power play goals for Chris Quider. The only New Jersey goal came on a late penalty
shot by Jack Hughes. Also winning the NHL Tampa Bay Winnipeg and the first ever playoff win for the Seattle Kraken at the Stadium show hey O Tony second bat of the game, two run homer Angels went on to beat the Yankees five to two on the one hundredth anniversary of the opening of the Yankee Stadium, and the other four teams in the Al East all one, including Tampa Bay, who is now fifteen and three in LA JD Martinez two home runs Clayton Kershaw's two hundredth career victory.
The Dodgers shut out the Mets five to nothing.
John Stashieway gloom Brooks Sports.
Livem coast to coast from New York to San Francisco, Boston to Washington, d C. Nationwide on SIRIUSXAM, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Let's get back to some of our top stories this morning. A massive settlement in dominion voting systems, defamation lawsuit against Fox News, even more job cuts coming at meta platforms in Disney, and a sluggish earnings report from Netflix. Lots to talk about this
morning with Bloomberg's Alex Webb, who joins me now. Alex, great to speak with you.
As always, we should talk about the terms of this settlement for dominion systems that really did come at the last minute. Seven hundred and eighty seven and a half million dollars. That's less than half the one point six billion Dominion was looking for, but a lot more than many analysts expected.
Yeah, it's certainly a big chunk of change. It's the thing that actually a lot of people are keen to know is whether it also included an apollo from Fox. It is something that they can afford. They have, you know, cash of four billion dollars in net debt, but of course, uh cash at hand a four billion dollars, So it's not going to make a significant dent in their finances, although clearly not something that they're going to be delighted
to pay. The real thing they're avoiding here is Rubert Murdock getting up on the stand, other Fox executives and personalities getting up the stand and bringing more embarrassment to the network in a way that you know, could potentially not only damage their reputation for non core viewers, but also for their core audience.
So New Fox News has the cash flowd to handle this, but of course the network has seen something of a subscriber exit I'm sorry it an advertiser exodus in recent years. I mean, what could this settlement mean as far as how Fox's business goes going forward here given the advertiser environment, I mean.
If the forecast for the company are not terribly bullish, the expectation over the next two to three years is that both ebit done net income gradually decline. It is a difficult space when you've got you do have some competition althocially, not as significant as Fox had anticipated from the Newsmaxes of the world. It's I think the thing they might be looking for, frankly, is a good Donald Trump run because the more engaging Donald Trump is, the
more engaged their audience becomes. That is something that benefits them. So the election cycle will be hugely important for their earnings. The appetite of you know, advertisers, they sometimes shy away in the short term when there is damage. We've seen time and again that they do return in the medium to long term if they think the audience is there.
Speaking of the advertiser environment, I was thinking about subscribers because of the focus this morning as well on the job cuts coming at meta platforms and as well, we knew that both companies were bringing the acts down and I guess we're getting a better idea of just exactly where the actes are going to fall.
Yeah, it was particularly interesting at Meta that they are going to be cutting jobs in the reality Labs division, which you know, not a year ago, was considered by management, at least in terms of their public statements, the big future of the company. In the past couple of quarters, they've sort of tamped back on big public statements about the prospects for the Metaverse, and frankly they've been rewarded for it, along with the significant job cuts they've been doing.
In the order of seventeen thousand job cuts of what have been announced. This was been, you know, characterized by the company as a year of efficiency, and the stock is up seventy five eighty percent, you know, partly as a consequence of that Disney. You know, they have also been cutting some jobs. It's interesting they are cutting jobs in the entertainment division, which you know, is considered by many to be the court business, even if they sometimes
make more money from theme parks and elsewhere. But it shows that actually just inventing, sort of investing limitlessly in content is no longer considered the priority.
You know.
It's I got to talk about Netflix earnings weaker than expected subscriber growth. Now they're saying passwords sharing could be what gets them going in the second half. How much can Netflix ring out of subscribers who don't pay at this point.
I mean, you know, that is the sort of fifty billion dollar question. There are one hundred million people they estimate share passwords. The key question now is whether they can convert five percent or fifty percent of those into paying subscribers. The quarterly subscriber growth is one and three quarter million. That was less than two point four million
people that expected. So even if you get five to ten percent of those people to convert, that's a meaningful difference when it comes to those overall numbers, and has been enough to hamp back some of the fears around NETFLI, the stoken nishitifel twelve percent in off grouse trading is recovered quite a lot in a one stage.
Of trading up 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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