Good morning.
I'm Nathan Hager and I'm Amy Morris. Here are the stories we're following today.
Shares of Tesla are going in reverse this morning. They're down more than seven percent in the pre market. The electric vehicle maker says it expects sales growth this year to be quote notably lower. We get more from Bloomberg's Oliver Kruk.
They gave no guidance in terms of deliveries for this year. They delivered one point eight last year million. That is they're expecting two point two. That's what the analysts are expecting. That's still twenty percent growth against a backdrop that is challenging for a lot of the auto sector and a lot of the EV market. There's going to be a slow down in EV's that seems more or less certain
this year. Interest rates, basically, Elon Musk said that our margin is directly pegged to interest rates in the United States, So if they come down, our margins will be good. If they don't, they'll be worse. And there's a competition from China. There's all these other competitors with cheaper models that are coming into the market.
Bloomberg Zolli Krouk says On the conference call, Elon Musk said he needs a bigger steak in Tesla to prevent being ouse to a CEO. Right now, he owns about thirteen percent of the company.
While Taesla's shares are sliding. It's a different picture at IBM this morning, shares up more than seven and a half percent. The company delivered a positive outlook for revenue and cash flow in twenty twenty four. Those details now from Bloomberg's Charlie Pellett.
It is an optimistic signal for the pace of corporate technology spending. IBM also announced it does expect to reduce jobs by a percentage in the low single digits. The ARMANC, New York based company has focused on streamlining its operations around software and services in recent years by divesting managed infrastructure, weather, and health businesses. IBM has also introduced new products to capitalize on growing interest in artificial intelligence in New York. Charlie Pellett Bloomberg.
Radio, All right, Charlie, thank you. We're also following Boeing this morning. That stock is down another two percent. The Federal Aviation Administration is freezing planned production increases for Boeing seven thirty seven Max. At the same time, the FAA approved inspection procedures that airlines need to carry out in order for the Max to resume flights. Boeing CEO Dave Calhoun met with senators yesterday. Before that meeting, he was asked what message he has for concerned passengers.
We fly safe planes. We don't put airplanes in the air that we don't have one hundred percent confidence in. I'm here today in the spirit of transparency to number one, recognize the seriousness of what you just asked. Number two, to share everything I can with our Capitol Hill interests and answer all their questions because they have a lot of them.
I'm Boeing CEO Dave Calhoun told senators the planemaker's current safety issue can be resolved in days and weeks, not months.
Turning to politics now, Earlier this week, Donald Trump was in New Hampshire for the primary. Now he is set to take the witness stand today in the defamation suit brought by Ejing Carrol Bloomberg's Ed Baxter has that story.
This comes two days after his New Hampshire victory, and he'll be in front of a jury. Carol contends his denials of her rape clam have hurt her reputation. It gives Trump a chance in the witness box to repeat the denials. This could be very contentious. Judge Lewis Kaplan has already held Trump liable for defamation, and if Trump ignores the judicial restraints on what he can say, as he has in the past, it could lead to fireworks.
Last week, remember Kaplan threatened to bar him from the courtroom, saying he couldn't control himself. Ed Baxter Bloomberg Radio, all.
Right, and thank you.
As for President Biden, he's picked up a key endorsement as he ramps up his reelection campaign, winning the banking of the United Autoworkers' Union UAW. President Sean Fain says the president has earned it.
He joined us in solidarity on the picket line for the first time in our nation's history a sitting president has ever done that.
And the UAW Shan Fain laid into former President Trump, calling him a scab who represents billionaires. President Biden says he's kept his word to be the most pro union president ever.
I'm proud you have my back.
Let me just say, I'm honored to have your back and you have mine.
That's the deal.
How President Biden will still need to win the back of rank and file union members. The UAW says it'll ramp up get out the vote efforts for the president in Michigan and other battleground states.
The Federal Reserve has raised the rate on loans to banks issued under an emergency lending program launched last year. The move comes after borrowing surged in recent weeks as institutions took advantage of the attractive financing terms overseas.
Amy we're expecting a policy decision from the European Central Bank. Economists to expect the ECB to leave rates unchanged in its first monetary policy decision of the year. Instead, the focus is on President Christine Legard's news conference and any fresh signals on the outlook for borrowing costs and.
A warning from former Treasury Secretary Robert Rubin. He says risks are even greater today than in the early nineteen nineties, when incoming President Bill Clinton crafted a budget tightening package to shrink the deficit. Reuben spoke with David Weston on Bloomberg's Wall Street Week.
I think we're in a terrible place because, unfortunately, once you get to legislating.
There isn't the will.
There's a lot of talk, but the talk is always divided politically between the Republicans who refused to raise taxes and the Democrats who won't deal in titlements.
You can catch the entire interview with former Treasury Secretary Robert Rubin on Bloomberg Wall Street Week with David Weston on both Bloomberg Radio and television.
And this note from overseas Amy. Pay for most senior investment bankers at Wall Street firms in Asia fell to its lowest level in almost two decades. Sources say total compensation in Asia, leaving out Japan fell to between seven hundred thousand to eight hundred thousand dollars. That is well below the million or more that senior investment bankers have
typically earned. At least twenty percent at Managing directors at lenders including Morgan, Stanley and Ubs received no bonuses last year in Asia.
Time now for a look at some of the other stories making news around the world, and for that we're joined by Bloomberg's John Tucker.
Good morning John, and Good morning Amy.
There is hope of a bipartisan border deal, but some lawmakers say if they're no big policy changes, then immigration reform is dead on a rival. More from Bloomberg's Nancy Lyons.
The details of the agreement have not yet been released, but some Republican senators are already criticizing the bones of the deal, like you TOAs Mike Lee.
I have great respect for colleagues who are working hard trying to fix the problem, and I'm sure they are coming up with some provisions that might help certain things. But from what I'm hearing, this could cause as many problems as it's sold.
The bill being drafted would reportedly grant humanitarian parole to five thousand undocumented immigrants a day. These GOP lawmakers say that's a magnet that will draw more people to our border in Washington, Nancy lyons Bloomberg Radio.
Nicky Haley campaigns in our home state of South Carolina. Last night, she talked in part about Donald Trump's reaction to her not dropping out of the race after New Hampshire.
He pitched a fit, he was insulting.
He was doing what he does, But I know that's what he does when he's insecure.
I know that's what he does when he.
Is threatened, and he should feel threatened without a.
Doubt, Haley is vowing to press on. Thanks to the backing of Wall Street Titans, wealthy donors, and a group funded by industrialist Charles Koch means she has enough funding to keep running. Another attempted attack on merchant shipping by iranbak Houthi militants. US Central Command says US Guided missile destroyer shot down two anti ship ballistic missiles aimed at two American flag vessels in the Gulf of Aden. A
third missile fell into the sea. The attack is the first in five days, comes despite multiple rounds of retaliatory strikes by the US and the UK. Fox has been ordered to face a two point seven billion dollar defamation lawsuit by Smartmatic Corporation, one of two voting technologies companies falsely accused on Fox News of rigging the twenty twenty
presidential election against Donald Trump. The decision Wednesday by New York Jidts Who's the latest sent back for Fox after the media giant agreed in April to pay seven hundred and eighty eight million dollars to settle a similar suit by Dominion Voting Systems. Global News twenty four hours a day and whatever you want it with Bloomberg News Now. I'm John Tucker Han. This is Bloomberg Amy.
All right, thank you John. We bring you the news throughout the day here on Bloomberg Radio. But now you can get the latest news on demand whenever you want it. Subscribe to Bloomberg News Now to get the latest headlines at the click of a button. Get informed on your schedule. You can listen and subscribe to Bloomberg News Now on the Bloomberg Business app, Bloomberg dot com plus Apple, Spotify, and anywhere else you get your podcasts. Time now for
our Bloomberg Sports Updated. For that, we bring in John stash Hour.
Amy Jin. Harbaugh was going to be a hot NFL coaching commodity considering the success he had had with the forty nine Ers getting them to the Super Bowl, and then when he coached Michigan too the undefeated season of the National Championship, he became even hotter. Spoke with many NFL teams, but the LA Chargers were always seen as the favorites. He wants quarterback the Chargers back in nineteen
ninety nine. In two thousand, hits official a five year deal, Harbaugh taking over an underachieving Chargers team that has a good quarterback in Justin Herbert Nick. Sirianni staying in Philadelphia, but the Eagles changing both coordinators and they say that Sirianni will no longer be as involved in the offense. The Eagles had that horrendous slump at the end of
this past season. Joe Tony, pro Bowl guard doubtful for the Kansas City Chiefs in their AFC Championship game Sunday in Baltimore, NBA Milwaukee Cleveland won twenty six to one sixteen. It was the first game for the Bucks since the coaching change the firing of Adrian Griffin. Joe Prunty coached them last night, but Doc Rivers is taking over the Bucks. He went to college in Milwaukee at Marquette. He's had sixteen straight coaching seasons with an over five hundred record.
Minnesota got thirty eight points from Anthony Edwards in a one eighteen one oh seven win at Washington. The Warriors played for the first time since the death of their assistant coach Dejon Milojovich. They beat Atlanta one thirty four to one twelve. Joseph Kamega scored twenty five points. He shot eleven for eleven John Stashanward Bloomberg Sports.
From coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on SYRIASXAM, the Bloomberg Business appened Bloomberg dot Com. This is Bloomberg Daybreak.
Good morning.
I'm Nathan Hager. The latest earnings report from Tesla isn't exactly giving investors a charge this morning. The electric vehicle Giant came in with earnings and revenue just shy of Wall Street estimates, but CEO Elon Musk's warning that growth will be notably lower this year is certainly putting a weight on the share price this morning. So let's get more on the outlook for Tesla and EV's. We're joined now by Bloomberg News transportation reporter Danny Lee. Danny, thanks
for being with us. Notably lower is that the phrase that's gott investors spoke this morning.
I think it's a combination of being notably lower or nottally slower in fact on growth, and the EV Giant didn't even offer four year guidance for twenty twenty four, and that is what is spooking investors. And fans alike, and what you could characterize this year twenty twenty four as a transition year for Tesla, you know, all that growth of the past couple of years and nothing in between until next year when it releases new models.
Those new models include, at least according to Elon Musk on the call, a new lower priced car. We've kind of heard that before, haven't we.
The el Mousk has a who aspired to have a low cost car but has never delivered. And this is now Elon Musk for the first time with Tesla executing on that promise. But this is still going to come in the back end of twenty twenty five. So even though this does come in twenty twenty five, it's still almost like two years away from where we are now, and it's a considerable weight for then investors having to wait for this ramp up all the costs that go
into building up new models. As we've seen with the struggle Tesla has with the cyber truck, it's going to be a potential dragon earnings.
And in the meantime, the.
Ev giant has been cutting costs pretty aggressively and trying to get past the headwind of higher interest rates. Is there a trajectory for Tesla to continue with that strategy.
Well, Tesla has been looking to cut its costs. He's also been cutting prices, you know, trying to lure consumers with these obviously battling higher interest rates, So there is always that person pull factor, and Elon's trying to find any way which possible to make sure he's getting the best possible costs for his product in order to be so much more competitive when it comes to a price.
And obviously what we see right now the backdrop for the US consumer in particular is they're not necessarily as willing to buy new electric vehicles.
Another interesting note for Musk on the call, saying that he might need a bigger stake in the company to avoid being ousted as CEO. Is governance becoming more of an issue for Tesla on the board, particularly with all the distractions around X and whatnot.
Well, Elon Musk, you know, after buying Twitter and selling down his shares in Tesla to fund this purchase, he will saber rattle as much as he wants to ensure that he potentially will get what he ultimately wants is some form of better control, bigger controlled again of Tesla. So I think this is a wait and see moment whether the border seeds to his demands. But ultimately Tesla, Elon Musk Rather is really the lynchpin in driving Tesla forward.
Of course, it's not just Tesla facing headwinds. Boeing has the grounded seven thirty seven Max nine and now this production freeze ordered from the FAA. It seems like the hits just keep on coming for Boeing.
Danny, Yeah, I mean the US Federal Aviation Administration escalating its response in the wake of the Alaska Airlines accident, and in two parts it's partly good news for Boeing and obviously partly very bad news. On the good side, there is the restart of the inspections that airlines can now look to get the grounded Max nines back into the how the restriction on expanding production. This is all key and very directly important to Boeing's ability to grow.
It's cash cow seventy seven Max. You all the money that goes into delivering the revenue. It's so important. It delivers thirty eight planes a month and it's trying to grow that to fifty. So there's a big gap right now into what it potentially could do in future. And on January thirty first, Boeing is meant to be delivering its guidance for twenty twenty four, so what effect this has on its future outlook into twenty twenty four will be very, very key.
This is Bloomberg day Break Today, your morning brief on the story's making news from Wall Street to Washington and beyond.
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