Leaked Documents Arrest; Bank Earnings Begin

seven hours. I'm John Tucker. Those stories straight ahead, and I'm Dan Schwartzman. The Yankees get tramps by the Twins in the Bronx. I'll have that more coming up in sports. That's all straight ahead on Bloomberg Daybreak, The business news you need disturn your day, and just one fifteen minute podcast each pointing on Apple, Spotify, the Bloomberg Business App, and 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 major developments in the classified Pentagon Leak, a twenty one year old airman is under arrest and now the US government is in an awkward position. Bloomberg's at Baxter has the story Jack Deschara is classified as a cyber transport system journeyman. Education requirement high school degree, driver's license, up to eighteen months of on job training.

How did he have access to the documents? Pentagon spokesman Brigadier General pat Ryder, this was a deliberate criminal act, violation of those guidelines. And White House spokesman when Karein Jean Pierre. The Department of Defense has said they have taken steps to further restrict access to sensitive information. It will be interesting to gauge international response in the coming days.

In San Francisco, I'm at Baxter, Bloomberg day Break. All right, thanks with a document leaks overshadowed President Biden strip to Ireland. The White House says the President has been briefed on it as he stays focused on his Irish heritage. If if we gave him the poor attempt at Irish tomy

shaw WAYA, I'm at home. The President addressed the Irish Parliament in Dublin yesterday, then took part in a banquet dinner with Prime Minister Leo varadker Brian said the US will work with Ireland to promote shared values, especially as we marked the twenty fifth anniversary the Good Friday Agreements this week. Above all, remember the vital and ceaseless work of strengthening democracy to deliver progress for our people everywhere. And on this final day of his visit, President Biden

will speak at a cathedral and County Mayo. It's made of brick sold by a distant relative. Let's turn to the markets now, Karen. The economy and interest rates have been in focus all this week. Today we get our first snapshot at bank earning since the recent turmoil. We get more from Bloomberg Global Finance correspondent Shinali Bask. There are a lot of questions for JP Morgan City Group and Wells Fargo for how much they bought an in deposit during this big move away from the regional banks

in the first quarter of this year. PNC is also reporting today, so investors will have questions on whether there's a credit crunch and whether regional banks have the propensity to lend to the economy when the economy looks like it's getting tough. We'll be watching for provisions for loan losses to see if the banks are preparing for tougher times ahead, and we'll be watching for their economic commentary as well. And Bloomberg Shinali Bassek says look for JP,

Morgan and Wells Fargo earnings around seven am. Wall Street Time Citygroup reports at eight well one of the stocks hit hardest during the banking turmoil, Nathan maybe under more pressure today. A top investor has exited his entire position in Charles Schwab. The Financial Times is reporting Rajeev Jane's g a QG partner sold its entire one point four billion dollars stake during last month's turmoil, and Schwab's shares have lost nearly a third of their value since March.

Well after a pair of key inflation reports this week, Karen, we wrap up the week with the March reading on retail sales. Monomists are forecasting a decline of four tenths of a percent. We get a preview from Bloomberg's Michael McKee March malaise the analysts are calling it and expected drop in retail sales last month as consumer sentiment turned sour and tax refunds fell twenty five billion dollars in

March compared with the same month a year ago. Banks have reported falling credit card receipts and stores reports slower sales. Auto sales also dropped during the month. The Fed end Global Wall Street have been anxiously watching consumer spending for science. The economy is slowing down. If the sales numbers prove that out, then the question flips to how much and how fast it's slowing and whether the Fed needs to

raise interest rates again. Michael McKee Bloomberg Daybreak. All right, Mike, thanks, So global stocks are heading for their highest clothes in ten weeks ahead of the retail sales report and bank earnings. But despite the recent rally, one of Wall Street's biggest bears remains bearish in the short term. Mike Wilson and Morgan Stanley says, the S and P five hundred is heading lower. We put those targets of three thirty three hundred for a trough for this cycle in May of

last year. Okay, so that that has not changed. And but you know, calling the price scan the time, I mean, it's hard enough to get one right, to get both right.

I think it is tricky so we've been wrong on the timing for sure, but it doesn't change our view that that low end of the range, that path two thirty nine hundred, we think still goes through kind of low three thousands ultimately, and that thirty nine hundred price target for Morgan Stanley's Mike Wilson is about six percent below yesterday's close for the S and P over learning more about a meeting in Washington this week here in between Fedchair J Powell and People's Bank of China Governor

Ye Gong. Amy Morris has that from our Bloomberg ninety nine one news erm in Washington. They met on Tuesday during the World Bank and IMF Spring meetings, and while the PBOC did not provide much detail, it did say that Ye and Powell discussed the economic and financial situations in the world's two largest economies. It was their first one on one talk since twenty twenty, when Powell spoke

with Ye for seventeen minutes by phone. Their last in person meeting was in twenty nineteen, on able to meet in person since then, in part because China had imposed strict border restrictions to contain the spread of COVID in Washington. I maymy more as Bloomberg Daybreak, Amy, thank you, and shares a bowing down four and a half percent in early trading. Let's find out why with Bloomberg, Steve Rappaport,

Steve Karen Nathan. The aircraft maker says it's pausing deliveries of some Max Jets because of a problem involving fittings that attached the plane's vertical tale to the rear end of the fuselage. The Max Jets were grounded worldwide in twenty nineteen after a pair of deadly crashes. The company this week reported a surgeon quarterly deliveries, outpacing rival Airbus for the first time in nearly five years. Live in New York, I'm Steve Rappaport, Bloomberg Daybreak. Thanks Steve, This

is Bloomberg. Seventy one degrees in New York, one more warm day before the weekend. We'll get up to the low eighties today and get down to around sixty tonight. Take a look at some of the other stories making news in New York and around the world with Bloomberg's John Tucker. Good morning, John, Yeah, Good morning to Nathan. The State University of New York dropping SAT test requirements. Let's find out more in this report with Bloomberg's Denise Pellegrini.

John Sunny's board has unanimously voted to do away with the admissions requirement for the SAT and the ACT, and this goes for its dozens of campuses throughout the state. The requirement had already been temporarily suspended during the pandemic, and the National Center for Fair and Open Testing says about eighty percent of US colleges and universities were already test optional for undergrad's last fall. Sunny's enrollment has been shrinking and fewer high school students have been taking the

standardized test, particularly among historically underrepresented students. John Our Bloomberg's Deunise Pellegrini. Former President Donald Trump defending his real estate business during a seven hour deposition with New York Attorney General Letitia James, he defined expectations that he would plead his Fifth Amendment right. James sued Trump, three of his kids, and his company in September for two hundred and fifty million dollars, alleging linked the inflated the value of his

assets for years. New York's all reduced a budget being held up by legislative leaders wrangling with Governor Hokeel over her proposal to toughen pre trial detention policies. That story in this report from Bloomberg's Charlie Pellet. It is the second consecutive year that Hockel has slipped changes to bail policies into negotiations with fellow Democrats over the states more

than two hundred and twenty billion dollar budget. The spending plan was due April first, and lawmakers have passed two extensions that will keep the government functioning through April seventeenth, but it is unclear when a deal might be reached. In New York, Charlie Pellet, Bloomberg Daybreak pro Publica reporting Supreme Court Justice Clarence Thomas and relatives sold three Georgia properties that include Thomas's boyhood home to GOP mega donner

Harlan Crowe in twenty fourteen. In March, the first known instance where money flow to the High Court justice from the same Texas real estate magnate who has provided him with lavish trips around the world. The Republican dominated Florida legislature on Thursday approved a ban on abortions after six weeks of pregnancy. A Proposals signed it a law later in the day by GOP Governor Ron De Santis as

he prepares for an expended presidential run. The six week band will take effect only if the state's current fifteen week ban is upheld in an ongoing legal challenge that is before the state's Supreme Court. At Meta planning to invite teenagers and young adults to join its Metaverse app in the coming months, but dozens of advocacy organizations and kids' safety experts have signed a letter as sent to Meta CEO Mark Zuckerberg asking him to terminate the plans. They

argue miners will face harassment and privacy violations. Global News twenty four hours a day, powered by more than twenty seven hundred journalists and analysts and more than one hundred twenty countries. I'm John Tucker. This is Bloomberg, Nathan. Thank you, John. Time now for our Bloomberg Sports update for that bringing

Dan Shortzman. Good morning, Nathan. The Yankees opening up a four game series in the Bronx versus Minnesota as the Twins dominated Hi driving kids and deep going back chucks. He's on the track, He's at that's courtesy of the S Network. Minnesota hitting four total home runs in the eleven to two win. Game two A's tonight, as it will be Nestor Cortez on the Hill from New York

versus Tyler Mallley for the Twins. Matt's opened up a ten game West Coast swing at Oaklands after an off day with Kodai Sanga on the Hill versus James Kapellian. It is the Nets and Nick's getting in their playoffs un to weigh on Saturday, broken on the road at the Philadelphia seventy six Ers. Tip Off is at one pm. Knicks playing game one of their opening round of the playoffs in Cleveland versus the Cavaliers. Tip off schedule for six pm. Calves are the four seed in the East,

the Knicks being the five seed. Rangers losing their regular season finale three to two at home to the Toronto Maple Leafs as Toronto scores three times in the third period. Meanwhile, the Devil's coming back from a four to two third periods to knock off the Washington Capitals in overtime five to four, Luke Hughes scoring the winner his first career NHL Goal New Jersey. Capping off their regular season with

the most wins and points in franchise history. The Devil's and Rangers will be meeting in the first round of the playoffs on Dan Schwartzman Bloomberg Sports Live from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius XAM, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning.

I'm Nathan Hager, a twenty one year old member of the Air National Guard, is due to appear in court today to answer for one of the biggest leaks of US intelligence since Edward Snowden. The arrest of a junior level Defense Department employee in the Pentagon League is raising serious questions about the security of America's secrets and putting the US government in a very awkward position to try to answer them. For more, We're joined by Bloomberg News

Executive editor for International Government, Rosalind mathieson Good morning. First off, what more do we know about this suspect Jack Tashira, Well, not a lot, as you say. He's a very he's a young man and having a fairly junior position, but however, he had access to one of the highest classifications that involved extensive vetting. He had access to very very top level information that he was seemingly sharing with his friends

to try and get more friends. It doesn't appear that he was doing this out of any effort to sort of cultivate relationships with other countries or to go against the US government. It was simply because he thought it would make him look cool with his friends, and so he was sharing very very sensitive information with them on different platforms, and quite a lot of it. It seems that turns out even more of it is still coming out now, so we'll know more, of course, as time

goes on. We've had a very quick arraignment. Obviously he's going to appear in court very soon and we'll find out more at that point. But it does seem that there was no great malign intent here, aside from to simply, oh, I've got access to a lot of very very interesting, high level I want to tell my friends about it. Well, that raises the obvious question of who else could have that same kind of access, and who else could have

an even more malign motivation to put it out there. Well, that's right, because what we know is as of October twenty nineteen, about three million people had permission to access classified documents in the US. Of course, there were real efforts after the September eleven attacks to sort of share intelligence much more widely classified documents within the US and beyond.

And again in the run up to the Russia's invasion of Ukraine, you saw widespread sharing of intelligence and classified information quite publicly to some extent, by the US and other Western allies to sort of warn Russia against invading, saying we can see what you're doing and we know what your intent is. And so it's become in a way more normalized to have some of this information floating

around in the public domain. But the fact that at least three million people as of October twenty nineteen, potentially much more now since the war has been going on, have access to these documents, the question is do any of those have different kinds of intentions, perhaps to share that information with other countries, with figures and other countries,

and not just with their friends. Well, even if this relative spread of access could be normalized, we have seen a pretty fierce reaction already even before the arrest, from South Korean opposition leaders as well as Ukraine, saying that Russia could be a beneficiary of some of these disclosures. What further international fallout could we see now that we

do have an arrest in this case. Well, it's interesting because you do see some public airing of disquiet, but it's also a bit muted publicly that I don't really want to call out the US too heavily. The reality is that pretty much every country spies on every other country, and they spy on each other, even if they're allies. They just don't want it to become known publicly and to this extent, so they're being a little bit quiet

publicly about it. But behind the scenes, from what we hear, there are lots of phone calls going on into Washington saying, hey, if we're sharing our intelligence with you bit through the Five Eyes Intelligence Network or whatever, we kind of want that information to stay safe. And it's clearly concerning that it doesn't seem to be safe if it's shared with the US, and that's kind of the concerns that are being aired, and they don't want their own dirty linen

to become public. They don't want the extent of their own actions to become public, and certainly they don't want anything that might benefit Russia, as you say, and its war in Ukraine. So certainly behind the scenes, those conversations are going on and possibly sort of forcing yet another reassessment in the US of how classified information is handled.

Are these conversations making for further difficulties for President Biden as he's trying to tap into his heritage and have sort of a celebratory mood as he continues to make his way through Ireland. Well, it's interesting because, of course he met with the UK Prime Minister Rishisunak, who know the UK is part of that five Eyes intelligence sharing network. Publicly, again it was all warmth and smiles and saying they

didn't really discuss it that much in private either. But we do know from our own sources as we reported that there have been conversations that have gone on. But obviously for the US President, he wants this trip to

go well. He wants to tout his Irish streets. He also, by the way, has some English roots also, but he wants to sort of show that kind of stoic, determined Irish heritage as he gives up for a re election bit expected for next year, and obviously to say that he's got the fight of the Irish in him, you know, given his age, give given everything else, and his sort of like tendency towards gaffs and other things, to show that he's really capable and ready to step it up

for the campaign. This is Bloomberg Daybreak Today, your morning brief on the story's 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 election devices. Just say Alexa pay Bloomberg eleven thirty plus. Listen coast to coast on the Bloomberg Business app, Serius XM Channel one nineteen, the iHeartRadio 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