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Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, Oil is on the rise as Middle East tensions escalate. Israel's military has begun moving civilians out of Rafa. It is a potential prelude to a long expected attack on the Gaza city. We get more from Bloomberg senior reporter Henry Mayer.
What we know is that the Israeli army has been dropping leaflets to residents. In total, we're talking about one hundred thousand people, also sending text messages, recorded voice messages and through media announcements telling these people that they have to evacuate from this area eastern part of Rafa. And obviously this is the long, long expected, long anticipated announcement by Israel which could lead to an actual offensive on this city.
Bloomberg's Henry Mayor says the move comes after ceasefire talks between Hamas and Israel in Cairo over the weekend seem to stall. As we mentioned, oil is on the rise and checking crud right now, West Texas Intermediate is up one point one percent. Trading just shy of seventy nine dollars a barrel well.
Nathan will Israel moves closer to an attack on RAFA. Protests continue on college campuses as commencement ceremonies begin. About seventy five demonstrators wave Palestinian flags and enchanted a slogans at the University of Michigan ceremony in New York. Columbia University has cleared out protesters ahead of its graduation on May fifteenth. Mayor Eric Adams is promising to keep things safe for the ceremony.
If the institutions decide to graduate their students to celebrate a beautiful experience with their families, we'll make.
Sure it is done in a peaceful manner.
Mayor Adams spoke on ABC's This Week Heard Sundays on Bloomberg Radio and Karen.
Members of Congress are weighing in as well. Democratic Senator John Fetterman says the protesters should be demonstrating against Tomas.
These kind of protests haven't been helpful and ironically they are actually working against peace.
But Democratic Congressman Rocana says the demonstrator's message deserves to be heard.
They're telling us that over thirty thousand people have died. It's time for this war to end. It's time for the hostages to be released that AMAS has, and they want to see leadership in America and around the world. This is not the world that they want.
Congressman Conna and Senator Fetterman where guests on CBS's Face the Nation, which can also be heard Sundays on Bloomberg Radio.
Well, turning to markets, now, Nathan Cash is king for the Oracle of Omaha. We're in Buffett's Berkshire Hathaway's cash pile increased to our record one hundred and eighty nine billion dollars at the end of the first quarter. Now on the equity side, Buffett trimmed his holdings of Apple. Berkshire reported a one hundred and thirty five billion dollars stake in the iPhone maker at the end of the first quarter. That's almost forty billion dollars less than the end of last year.
We will have Apple as our largest investment. But I don't mind at all under current conditions building the cash position. I think when I look at the alternative what's available in the equity markets, and I look at the composition of what's going on in the world. We find it quite attractive.
Warren Buffett says, unless something changes dramatically, Apple will remain it's the largest investment. Berkshire also sold its position in Paramount Global at a loss.
And this week Karen wall Street is looking at lots more earnings and fed speak. We get a preview from Bloomberg's Charlie Pellett.
We've heard from eighty percent of S and P five hundred companies. Stocks of reclaim the fifty one hundred mark after a batch of bettle than expected earnings. Dan Suzuki is Deputy Chief investment Officer at Richard Bernstein Advisors. I think it's really earnings growth and fundamentals, kind of plain old boring stuff, and that's what's improving.
That's what Scott long momentum. And importantly, it's not that it's just improving, but it's broadening out.
Disney and Uber will be in focus this week, along with Airbnb, Anheuser Busch, InBev, Armholdings, Occidental Petroleum, and Ubs in New York. Charlie Pellet, Bloomberg Radio, All right.
Charlie, thanks well. Next week's US inflation print looms is key for the trajectory of equities and wagers on FED interest rate cuts is according to Morgan Stanley strategist Mike Wilson says the price reaction on the back of the release may be more important than the data itself.
Well, this morning, Karen, We've got plenty of c suite news to get you caught up on. Bloomberg News has learned Credit Swiss CEO Olrick Kerner is set to leave Ubs in the coming weeks after the completion of the merger of the two former Swiss rivals. Kerner had been brought into CEO in July of twenty twenty two to try to turn the ailing firm around. Combination of the two banks holding company these means the Credit Swie chief executive role will become obsolete.
Well.
Former Starbucks chief executive Howard Schultz is urging the coffee chain to own its shortcomings and fixed operations following its biggest sales miss in years. In a post on the LinkedIn, Schultz wrote, quote, at any company that missus badly, there must be contrition and renewed focus and discipline on the core. Starbucks shares plummeted after sales dropped this month for the first time since the early days of Covid in twenty twenty, and.
Karen, Twitter founder Jack Dorsey has left the board of Blue Sky. That's the social networking service that he helped fund and popularize a year ago. In the wake of regret over the sale of Twitter to Elon Musk. Relations may be warming between Dorsey and Musk. Dorsey calls the company now known as x Freedom Technology.
And Nathan that price of Morning Joe may keep going up. Robust to coffee prices have climbed to the highest level in forty five years. A supply crunch has intensified for the variety used in espresso, blends and instant drinks. When it's time now for a look at some of the other stories making news in New York and around the world, and for that we're joined by Bloomberg's Michael Barr Michael, Good Morning.
Good Morning, Karen. After multiple bomb threats at synagogues across Manhattan over the weekend, Senate majority lever Chuck Schumer announced the new four hundred million dollar funding package he says is now available to boost security and safety at synagogues, mosques, and churches.
The second I heard about the threats, your heart sinks. You hope it's a hoax, and in this case, thank god it was, but that doesn't negativize the fear, the trauma when synagogues and other houses of worship have to be evacuated.
Three New York City synagogues and the Brooklyn Museum received bomb threats. Former President Donald Trump's criminal hush money trying resumes today in New York. Prosecutors alleged Trump tried to suppress negative news coverage to influence the outcome of the twenty sixteen election. Hope Hicks will probably return to the witness stand today for further cross examination. House Minority Leader Hakim Jeffries says Democrats effectively have been governing as if
we were in the majority. After Republican OWL Speaker Mike Johnson worked with Democrats to pass a foreign aid bill, GOP Representative Marjorie Taylor Green announced plans to remove Johnson
as speaker. Jeffries says our view would traditionally be let the other side work out its own mess, but the New York Democrat went on to say, when that mess starts to impact the ability to do the job on behalf of the American people, then the responsible thing at that moment might be for us to make clear that we will not allow the extremists to throw the Congress and the country in the chaos.
It's a difficult situation on the other side of the aisle because many of my Republican colleagues are more interested in creating chaos, dysfunction, and extremism for what purpose. That's a good question that has to be asked of them.
Jeffrey spoke on CBS's sixty Minutes, which can be heard Sunday nights. I'm Bloomberg. Ninety nine to one in Washington. Interstate ninety five in Norwalk, Connecticut fully reopened the traffic in both the directions after a gasoline tanker truck burst into flames during a three vehicle crash last week. The fire damaged and overpass bridge, causing a complete shutdown. Global News twenty four hours a day and whenever you want
it with the Bloomberg News Now. I'm Michael Barr, and this is Bloomberg.
Karen sor Ry, Michael Barry, thank you time now for the Bloomberg Sports Update with John stash Hour.
John, good morning, Good morning, Karen.
Thirty years ago, the Rangers won the President's Trophy, won their first seven playoff games.
And then won the Stanley Cup.
This Rangers team also best regular season and they have now started the playoffs five and zero.
We'll see about the Cup. Long way to go for that.
But Game one at the Guarden with Carolina two early goals for me Becazavana Jet and the first period still wasn't over.
Right point Paderen were to the head for Kriider in the middle, chut Check to Savanna Jeck tut Chick scores fit to tout Check hit top power play goal as a Rangers lead three to one.
Sam roses with the call WEPN. Rangers hung on beight the Hurricanes four to three. The first round ended with Dallas's two to one Game seven win over Vegas. The defending Cup champs Blue two to nothing series lead. NBA first Round is now over Cleveland b Orlando one O six ninety four.
Cans were down eleven at the half.
Donovan Mitchell, who scored fifty points in the game six loss, scored thirty nine in the Game seven win. Nixon Pacers start their Round two series tonight. MSG Indiana won the regular season series two to one. Both the wins were by fourteen points. Sparse crowd at the stadium rainey Da game was shortened. Yankees beat Detroit five to two. Juan Soto once again the Big hit three run, go ahead double seventh and Ain't Aaron Judge homer in the first
Yanks sweep the series. Met Scott swept at Tampa. Bay Rays walked it off bottom of the tenth, one, seven, sixth. They stole seven bases they wanted on Johnny de Luca two run triple after Randy or Rose Arena tied the game with a ninth inning two out homer off Edwin Diaz his first blown save. Red Sox won nine to two at Minnesota and in the Twins twelve game win streak. Giants last night lost five fourth Philadelphia. The Nationals beat.
Toronto eleven nine.
Dodgers beat the Brave Showy how Tony had four hits, two home runs. Taylor Pendrith took to Nelson Golf in Dallas his first PGA win.
John stash I went Bloomberg Sports Kenny Nathan.
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 day Break. Good morning, I'm Nathan Hager. We are getting ready for another busy week for earning. It's pretty light on the economic data calendar this week, but there is a raft of FED speakers that could keep investors busy as well.
So let's get you set for this trading week ahead. We are joined now by Dennis Gartman, the chairman of the University of Akron and Doowment Investment Committee and the former publisher of the Gartment Letter. Dennis, Good morning, great
to speak with you. I wonder if you think investors should be pricing geopolitical risk back into the market given the reports we're hearing about civilians getting cleared out of the southern Gaza city of Rafa and now Russian President Vladimir Putin ordering tactical nuclear drills the day before is inauguration.
Very scary times. I'm afraid, and yes, I think you have to be pricing in geopolitical risk on a rather swift basis. There was talk over the weekend or ahead of the weekend that there would be a ceasefire talks, but they seem to have broken down in regarding Gaza and now we have gold breaking out to the upside. I think you have to be a long of the gold market, no question about that. And I think you have price in geopolitical risks. So that's the major topic
of the day. We'll be talking later this week about the Bank of England, but for right now, geopolitical risk is the topic to jure, no question about that.
What are you looking at in terms of a price level for gold?
Right now?
It's trading around twenty three hundred at the moment. There had been talking the past about three thousand as a potential gold level. Is that something you're looking at.
I've been very bullish of gold for quite some period of time. Now, I'm not a gold bug. There are times when you are to be long of gold, there are times when you to be short of gold. There are times when you are to be neutral of gold. But this is a time you are to be bullish of gold, no question about it. And I think that one should be bullish of gold, predominantly in non US dollar terms, and particularly in terms of the dollar yen.
I think we've got spot gold now going I think eventually to three thousand dollars an ounce, and I think that we've had intervention to stem the weakness of the dollar yen. But I think that's going to be proved to be fallacious. I've learned it when I traded for an exchange back in the nineteen seventies. The one thing I learned was that intervention to support a currency is usually usually fails. Intervention two weekend currency usually is. It works.
The fact that the Bank of Japan came in two weeks ago to intervene against the dollar yen at one sixty, I think the next time we trade through one sixty, we're going to two hundred end of the dollar, maybe two d twenty five end of the dollar, which is where we traded dollar yen when I first began trading yen back in the nineteen seventies. So I think the dollar yen and you should be short of the end, long of dollars, you should be long of gold, short
of dollars. That leaves you long of gold in yen terms. And we're now trading about thirty six three hundred and sixty nine thousand the end of the dollar. I think it's going to six hundred thousand the end of the dollar over the course of the next two or three years now.
We haven't heard any confirmation from the Japanese government that there was intervention last week, but we've seen some comparisons of Bank of Japan accounts that indicated are you thinking that the Bank of Japan could intervene once again?
They'll try to stop it at one sixty one more time, but I think they'll give up at that point, and once we trade one sixty ten and go through the one sixty level, that that frees you up to take to go to dramatically new lower levels for the end, new higher levels for the dollars. So I think they'll be intervening one more time to prove that they're there. But as I said, if I've learned anything in fifty years or trading, it's that intervention to support a currency
usually fails. Intervention to weakener currency almost always succeeds. They'll try once more to stem the ends of weakness, but they will fail very badly at that attempt, No question about.
It now, last minute or so. Dennis is the chairman of a university endowment. I wonder what you make of these growing campus protests and calls for universities to divest from Israel. Given what's going on in Gaza, your comments on that.
As long as I remain the chairman of the University of Acrons Endowment, we will avoid doing anything that protesters demand of us. And I think that we should pay attention to what Ben Sasse, the President of the University of Florida said, adults are back in the room, and we need to prove that we are stronger than the protesters. So free speech is important, but free speech that goes
across the line should be avoided at all costs. And like I said, as long as I remaina chairman of the University of Akrons Endowment, I will argue against disinvestment, no question about that.
And just quickly, is it possible to divest from Israeli interests in terms of a university endowment?
I think it's nigh upon impossible. The far reaches of international capitalism make it difficult to divest. I think it's a and ill advised and naive expectation on the part of the protesters. It just won't happen.
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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