Bloomberg Audio Studios, podcasts, radio news. Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
We begin in Washington, where a bill aimed at forcing a sale of TikTok is moving forward on Capitol Hill.
The House passed the.
TikTok Divestment Bill by a vote of three point fifty two to sixty five. Republican Dan Crenshaw says there's a simple reason why he voted for it. TikTok is owned by Byte Dance. Byte Dance is in China, and when you're in China, you have to do whatever the Chinese Communist Party says you have to do. That's according to the National Intelligence Slot pass in twenty seventeen. But fellow Republican Thomas Massey says the bill could do more than just ban TikTok.
It could also be named the Facebook Protection and Enhancement Act, because it's not the American people are going to benefit most from this. It will be Facebook. Talk is going to go up if this bill should pass the Senate.
Now, the bill does now head to the Senate, where its prospects are less clear. Majority Leader Chuck Schumer has only said he'll review the bill. Democrat Marie Cantwell has not committed to taking up the legislation when it comes before her Commerce Committee.
Well Nathan, the CEO of TikTok, says he is disappointed with the vote in the House.
Showed Chu posted this video on.
X Over the last few years, we have invested to keep your data safe, an all platform free from outside manipulation. We have committed that we will continue to do so. We will continue to do all we can, including exercising our legal rights to protect this amazing platform that we have built with you.
And the memo seen by Bloomberg, TikTok reiterated its plan to lobby the Senate not to pass the legislation.
Karrol Let's turn to presidential politics now. Donald Trump may be looking to Wall Street to fill some key cabinet positions if he wins the White House again. We get the story from Bloomberg's Jeff Bellinger.
Bloomberg News has learned Trump as Tall talked about hedge fund titan John Paulson as Treasury Secretary if he wins the November presidential election. Sources say Paulson hosted a fundraiser for Trump's re election at his Palm Beach home last month, and he is scheduled to host another one for Trump in three weeks with Cantor Fitzgerald's Howard Lutnik. The sources say Paulson's name has come up in recent discussions, but the conversations were informal, and any discussions about a possible
cabinet post are preliminary. Other potential names in the mix for the top Treasury post should Trump defeat incumbent President Biden include former Trade Representative Robert Leitthheiser and Susquehanna International Group founder Jeff Yass Jeff Bullinger Bloomberg.
Radio, all right, Jeff, thank you well. Speculations for also about John Paulson taking a role in Treasury. The current secretary is speaking out about the economy. Jenny Yellen says it's quote unlikely that market interest rates return to levels that prevail before the COVID pandemic triggered a wave of floation and higher yields. Ten your US Treasury yields average two point three nine percent in the decade through twenty nineteen. They spiked about five percent last October after the Fed
raised rates aggressively to combat inflation. The ten year now sits just below four point two percent and care in.
The busy week for economic data continues this morning with the release of retail sales and producer prices for the month of February. Let's get a preview from Bloomberg's Michael McKee.
Fed officials and investors will get two more key pieces of data before the Central Banks policy meeting next week. A strong rebound is forecast for February retail sales, which contracted in January. Private sector sources, including credit card systems, suggests spending picked up a lot in the last month. On the one hand, that would reassure Fed officials that the economy is not close to recession. On the other it may feed fears that a strengthening economy will feed inflation.
The producer price index, also released today, may offer some clues. It's basically forecast to be stable after unexpectedly rising in January. The Fed and investors will be hoping economists are wrong and factory gate prices end up being softer than forecast. Michael McKee, Bloomberg Radio.
All right, Mike, thanks well. In company news, the hunt is on for Disney to pick an eventual successor to CEO Bob Iger. We get the story from Bloomberg's John Tucker, John.
And Karen Disney has struggled with its succession planning in the past, and now they're making a stronger push to find somebody to replace CEO Bob Iiger. Eventually, Disney's board focusing on four divisional heads that the TV chief Dana Walden, ESPN's Jimmy Peterro, the theme parks boss Josh Tomorrow, and Alan Bergman, who heads the film business. Igers spending time with all of the candidates to share his Disney magic.
This is happening under the glare of dissident shareholders like Nelson Peltz, who are seeking board seats at Disney's April third annual meeting. Iger's contract runs through the end of twenty twenty six. No decision on a successor is expected this year. John Tucker, Bloomberg Radio, All right, John.
Thanks to other C suite news this morning, under Armour says its founder executive chairman Kevin Plank is returning as CEO. That story from Bloomberg's Charlie Pellett.
Stephanie Lenartz departs after she led just over a year of fitful efforts to reinvigorate the athletic brand. Plank will return to the CEO job on April first. Lennart's will remain an advisor to the company through April thirtieth. Lead director Mohammad al Aarian and economists and columnists from Bloomberg Opinion will succeed Plank as chairman in New York. Charlie Pellett Bloomberg Radio, all.
Right, Charlie, thanks, We'll investors await the highly anticipated IPO from Reddit. The social media company is giving guidance on its expectations. Bloomberg News has learned Reddit as telling potential investors that it expects revenue in twenty twenty four to grow by more than twenty percent versus the previous year. According to a filing that the sec revenue in twenty twenty three crud just over eight hundred million dollars, and.
Karina Saudi Arabia pushes ahead with one of the largest stock offerings in recent years. Bloomberg News has learned the Kingdoms and Tucks to add top Wall Street banks for a secondary share sale in oil giant a Ramco. Sources say Saudi plans to hire JP Morgan Chase as one of the main underwriters to the offering. Bank of America and Morgan Stanley are also contending for lead roles in the deal, which could raise as much as twenty billion dollars.
And Nathan a bullish forecash from the world's largest assembler of iPhones, Han High Precision Industry, reported its second straight quarter of strong profit growth. The company says lucrative AI hardware sales helped offset weakness an iPhone and electronics demand. It posted a thirty three percent rise in net income.
That it is time nowf for.
A look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael Barr Michael, good Morning, Good.
Morning, Caaron. Ukrainian drone attacks all the three oil refineries deep within Russian territory in an assault President Vladimir boo Uden said was aimed at disrupting his presidential election later this week. The aerial strike caused a fire at one of the country's biggest crude processing facilities near Moscow. It comes as the Biden administration says it's concerned about President Putin again threatening to use nuclear weapons if his country
is threatened. White House Press Secretary of Karine Jean Vierre, speaking on Air Force one with President Biden heading to Milwaukee, says Putin has made similar nuclear threats.
Russia's nuclear rhetoric has been reckless and irresponsible throughout this conflict. It is Russia that brutally invaded Ukraine without provocation or justification.
The US has insisted it will not send American troops to fighting Ukraine. Add will Pe Goldberg to the list of vocal critics of congestion. Pricing in Manhattan meant to ease traffic. New York Governor Kathy Hokel went on the View yesterday, but when the show went to commercial break, the cameras kept rolling.
What is the point Because New Yorkers didn't mess.
Up the streets of New York.
We have bike lanes and places that were not prepared for.
We have trucks that are too big.
Governor Hockle tried to explain that the tolls below sixtieth Street are intended to ease congestion.
I can walk backwards and heels faster than most trucks can get down the streets right now.
Congestion pricing is expected to take effect in June. Jury deliberations resumed this morning in the case of James Crumbley. He is the father of the Michigan teen Ethan Crumbley, who opened fire at his high school in Oxford in twenty twenty one, killing four students. A jury will decide whether Ethan's father is responsible for enabling his son to carry out the deadly attack. The defense says argued James
Crumley could not have foreseen his son's deadly shooting rampage. However, prosecutors say he was complicit in downplaying the troubles his son was going through and did not do enough to secure the firearm that Ethan eventually used in the shooting. Oakland County Prosecutor Karen McDonald there more than one cause of death.
Jeez probably doesn't get a pass because somebody else also caused the death of.
These four kids.
James Crumbly's wife, Jennifer, was convicted last month of similar charges. Attorneys say Rudolph Giuliani's homes in New York and Florida may be put up for sale to help bring in cash as he works through his bankruptcy. The former New York mayor is facing nearly one hundred and fifty three million dollars in debt, the bulk of which stems from a one hundred and forty eight million dollar defamation judgment awarded to two Georgia poll workers he accused of rigging
twenty twenty election results. Global news twenty four hours a day and whenever you want it with the Bloomberg News Now. I'm Michael Barr.
This is Bloomberg here, Bray, Michaelburr.
Thank you well. We do bring a news throughout the day right here on Bloomberg Radio. But now you can get the latest news on demand whenever you want it. Just subscribe to Bloomberg News Now to get the latest headlines right at the click of a button. Get informed on your schedule. You can listen and subscribe to Blue Bomberg News Now on the Bloomberg Business app, Bloomberg dot Com plus Apples, Spotify, and anywhere else you get your podcasts.
It's time now for the Bloomberg Sports Update, brought to you by by Tri State OUDI. For that, we bring in John stash Hour. John, Good morning, all.
Right, good morning care and the Yankees have had more than their share of injuries last couple of years, but Garrett Cole has been a mainstay as a Yank has not missed a single start due to injury. Now he's hurt an elbow injury that it has been reported, will sideline Cole one to two months. The good news is there's no indication of a tear that would require surgery.
Cole's heeded the Los Angeles to see a specialist. So the question now is if the Yankees pursue a free agent pitcher in Blake Snell, last year's NLCY Young Winner, remains unsigned, as is the ex Yank Jordan Montgomery. Yanks were said to be interested in trading for Dylan Cease for the White Sox just traded him to San Diego. Joe Flacco was apparently retired at age thirty nine, came out of it, joined Cleveland quarterback the Browns of the playoffs.
Was the NFL Comeback Player of the Year. Flaco has signed with Indianapolis. Another QB, Kirk Cousins introduced in Atlanta.
And I really believe as I looked around at opportunities for me in free agency that when the coach told me this when I was a young player in the league.
Coach I have a lot of respect for. He said.
When the owner, general manager, head coach and quarterback are on the same page, that's when you really have a chance to go win a Super Bowl. And as I looked at the Atlanta Falcons, I believe strongly that the owner, head coach, general manager, and quarterback can all be on the same page.
Falcons have not had even a winning record since twenty seventeen. Nets lost in Orlando one fourteen one oh six rematch of last year's NBA Finals Sam result Denver one in Miami. Nick start their road trip tonight in Portland. The Rangers visit Tampa Bay Capitol's lost seven to two in Edmonton. College basketball season ending losses for Rutgers, Fordham, and Iona Boston College and upset went over Clemson to advance at the acc Attorney At the PAC twelve, Stanford beat Callen overtime.
Big game of the Big East today at Saint John's against Seaton Hall, Colgate won. The Patriot Red Raiders headed a fifth street NCAA tournament. John Stashower of Bloomberg Sports.
What comes next in the effort to force a sale of TikTok by its Chinese owner Byte Dance. The divestment bill has sailed through the House, but its prospects in the Senate look quite a bit less certain. And Bloomberg's Alex Webb is here now with more on this Alex. There had seemed to be a fair bit of momentum for this bill, but it does really seem to have shifted in just a few days. Is this just about former President Trump changing his position or is there more behind it?
I mean, clearly that helps, but there are a lot of complicating factors here. As you say, is pass through the House with very big numbers three hundred and fifty two to sixty five. In the Senate. There are a number of concerns. Firstly, of course, we're heading into an election cycle. A lot of young people and including voters,
use the app, and there's concern about alienating them. There are those within the particularly the Republican Party, who concerned that banning it somehow would be an infringement on free speech. And that's something actually some Democrats have agreed it's sort of aligned with two Particularly, they think it infringes on the free speech of younger people. That's where a lot of young people express themselves. And thirdly, you know they see it as a way of reaching those young voters too.
So there are a number of different complicating factors. There is, of course, another big one that comes out of money, that there's a major Republican donor, Jeff Yass, who co found a Siscohanna group and he has a fifteen percent stake in BTE Dance as a suspicion that he might be doing some things behind the scenes because he is a considerable donor to the Republican Party.
Interesting angle there, because we've got Bloomberg News reporting as well that former President Trump is considering yes among others, as a potential Treasury secretary pick as he wins the White House or if he does win the White House. But putting that aside, there's also this concern that's been raised by supporters of this bill that TikTok's data is beholden to the Chinese Communist Party. Is there clear evidence behind that?
So there are two ways of considering this. There's the data about people's browsing patterns, what they look at, what they buy, and there's the way that the decisions on what content is served to people now, we don't have any proof or evidence that China is actually directly influencing that,
but we can see some proof points. Namely, there was a study a few months ago which showed that if you search for, for instance, tiananmen on TikTok compared to Instagram, it serfaces far more results on Instagram than it does on TikTok. So we don't know if that's a conscious decision, if there are other factors at play, but we can see the end result of whatever content decisions might be being taken at TikTok, And those are the sort of things that get people a little worried.
What's the potent shall impact Alex if this bill were to pass and TikTok were to divest. Are there potential buyers out there for TikTok if by Dance were forced to sell.
Yeah, because that's the key thing here. It's like is it going to be shut down or is it going to be divested. Don't forget that this did come up five six years ago when Trump was the president. There were lots of potential buyers in the US. We had names like Oracle, we had Microsoft, and lots of big tech companies in particular who don't necessarily have a social
media armed. The thing that a lot of people find hyper compelling about TikTok is the ability to plug it onto the front of actually an advertising or e commerce business that you can use it to drive that alternative revenue.
Like TikTok has an advertising business, it is still far early in its evolution than that of Google or alphabet that is, or of Meta, but that also provides a huge amount of upside if you're able to plug a sophisticated existing advertising business into the back of it, and so that's where people might spin opportunity.
This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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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