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.
Karen, we begin with the latest developments in Donald Trump's legal battles. Former president has followed through on posting a one hundred and seventy five million dollar bond in his New York civil fraud case. That means he will avoid having his assets seized while he appeals the four hundred and fifty four million dollar judgment against him. That bond was arranged by California based Night Specialty Insurance, a company best known for subprime auto loans, which is run by
billionaire Trump supporter Don Hankey. Meanwhile, the former president is coming under new restrictions ahead of his hush money trial in New York. The judge in that case has expanded a gag order after Trump attacked both him and his daughter on social media. Lourie Levinson is a former federal prosecutor now a professor at Loyola Law School.
Whether he wants who or not, Donald Trump has to tone it down because by attacking the judge's daughter, by attacking members of the district attorney's office, Trump has made it increasingly difficult for the judge to hold a fair trial.
Loyal law professor Lourie Levinson says the expanded gag order still allows Trump to make comments about Manhattan District Attorney Alvin Bragg. The hush money trial begins April fifteenth.
Well, Nathan, we have another note on Donald Trump. His net worth on paper tumbled a billion dollars as shares of as social media business plunge. Do we get details from Bloomberg's Charlie Pellett.
That was after the company disclosed that had lost more than fifty eight million dollars in twenty twenty three as revenue for the former president's Truth social platform trickled in.
Trump Media and Technology Group stockfell twenty one percent to forty eight sixty six, a share that's below the forty nine to ninety five level where the blank check vehicle it merged with was trading a week again go According to filings with the SEC, Trump owns fifty seven percent of the company, with his stake now worth three point seven six billion dollars on paper in New York. Charlie Pellett Bloomberg.
Radio, All right, Charlie, thanks in checking shares of Trumpet Media and Technology Group this morning, they're down another four point three percent.
And now to the latest developments in the Middle East. Care in a shadow war between Israel and Iran has ebbed and flowed in recent years, but a reported airstrike in Syria may be ratcheting up tensions. Details from Bloomberg Zamy Morris in Washington.
Iranian and Syrian state media claim inn Israeli airstrike on Iran's embassy compound in Syria killed a number of people, including a top military commander mohammedresa Zahedi, a high ranking Iranian general linked to the Islamic Revolutionary Guard Corps, plus another general and at least five officers. Iran's bign minister says Israel should be held accountable for the repercussions of the attack. The country's envoy to Syria vowed a quote
decile response. Israeli officials did not confirm the strike. In Washington, Amy Morris Bloomberg Radio.
All right, Amy, thank you. Meanwhile, the White House is calling for an investigation into an Israeli airstrike in Gaza that caught a well known aid organization in the crossfire. The Washington based World Central Kitchen says seven of its staff were killed in the attack, including an American with dual Canadian citizenship. The group, founded by celebrity chef Jose Andres, delivered the first shipment of aid by SA into northern Gaza last month. It's helped oversee construction of a peer
to bring more meals into the region. The Israeli military says it's conducting a review of the incident at the highest levels.
Turned out to the Economy Karen, the odds of a rate cut in June are deteriorating, and we get the details from Bloomberg's John Tucker.
John and Nathan Trader's recalibrating their bets on the federal reserves easing briefly setting the ons of a first move in June below fifty percent. This comes as ism manufacturing was stronger than expected towards the slocks. Chief economist at apollel Management.
We have suddenly expansion for the first time since twenty twenty two. We also seen suddenly that price is paid in im also beginning to accelerate.
The number of FED rate cuts priced in the swamps contracts for this year dropped a fewer than sixty five basis points. That's less than FED policy makers themselves of forecast. Some market watchers say the pendulum of centiment in US rates may be shifting toward the hawkish direction. John Tucker, Bloomberg Radio.
All right, John, thanks we the strong factory data helps send both stocks and bonds lower on the first day of the second quarter. OURBC Capital Markets head of US equity strategy, Lori Calvacina, expects to see money moving to other parts of the markets besides the so called Magnificent seven stalks.
I think we're due for one big catch up trade in the market from you know, kind of everything outside of the MAG seven, whether it's small cap, whether it's you know, kind of the non tech sectors. If you look at the pe in the market x the MAG seven, it's trading around sixteen times. The MAG seven's been trading between twenty seven and twenty eight times on a forward pe and kind of a round past peak. So I think there's room for the rest of the market to
kind of catch up. I'm not saying we have to get quite that over valued, but there's room for the rest of the market to make a move.
Capital Markets Lori Calvsina boosted her year end s and P five hundred price target to fifty three hundred.
And in Europe, Karen, UBS is updating its investors on when it'll begin at stock buyback program. Let's go to London and get the details from Bloomberg's Ewan Pots.
Ewan, Nathan and Karen. The bank buy back story rolls on. UBS says it will purchase up to two billion dollars if its shares over the next two years, including one billion dollars this year. The announcement gives shareholders in Switzerland's biggest bank greater visibility on returns as it completes the integration of Credits Suisse, UBS saying it's ambition is for share buybacks to exceed pre acquisition levels by twenty twenty six. In London, I'm your Pots Boomberg.
Radio, all right you and thanks what We're keeping your eye on Tesla shares. Later today, the company is expected to report global first order delivery and production numbers and a lets say demand for electric vehicles and elevated interest rates are taking a toll on sales. We gin more from Bloomberg Technology host ed Ludlow.
So Tesla's course lyad deliveries have Wall Street worried brace because the first quarter numbers are coming the expectation four hundred and fifty seven thousand odd sequential decline. But the key thing does Tesla beat its performance from the same period a year ago, higher rates, government policy, a tepid consumer and elon with a new policy that might have upset some people in the sprint finish to the first quarter, Ed Ludlow Bloomberg Radio.
All right ed thanks to one other corporate note. This morning, with more than half of the vote's cast, the Wall Street Journal is reporting Disney has pulled ahead in its proxy battle against Nelson Peltz's Try and Partners. The paper says Black Rock and t row Price are among the major investors backing Disney. The journal says investors are still casting votes and can change them through the annual meeting tomorrow.
Orry Nathan, thanks and welcome back. 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 now by Bloombergy's Michael Barr.
Michael, good morning, Good morning, Karen, The owner of the ship that rammed into a bridge in Baltimore last week, killing six workers. Is seeking to limit its liability to about forty three point seven million dollars. Legal experts say the company Grace Ocean could face hundreds of millions of dollars in damage claims. Yesterday, it filed a petition jointly with Synergy Marine, which was operating the Singapore flagged cargo
ship Dolly. They claimed the collapse that the Francis Scott Key Bridge was not due to any fault, neglect, or want of care of the companies, and that they shouldn't be held liable for any loss or damage from the disaster. Memhile Maryland officials, including Governor Wes Moore, urge patients as the cleanup gets underway, saying the safety of the rescuers and salvage crew will be top priority during the precarious operation and.
My directive to complete this mission with no injuries and no casualties.
We've already lost six Marylanders to this crisis.
I refuse to lose any more.
Governor Morris says a temporary channel on the northeast side of the collapse opened yesterday and will help to get more vessels around the site. Of the collapse. In two rulings, Florida Supreme Court decided that the state's fifteen week abortion ban is constitutional, which paves the way for a six week band to take effect soon. The state Supreme Court also ruled voters in Florida will be heading to the polls later this year to decide what is the future
of abortion in the state. Critics say that the varting in the November measure is too vague.
It doesn't define what viability is. It doesn't define what a healthcare worker is.
However, supporters of the ballot measure, like Ana Hotcomer with the Florida Women's Freedom Coalition, disagrees with critics.
Floridians are smart.
They understand what we want. They understand what the language says.
The November ballot would allow Florida voters to decide whether they think that abortion should be protected in the state's constitution and government interference should be limited. It's already been decided between Joe Bush, Joe Biden, and former President Donald Trump, but it's primary day in New York, Connecticut, Delaware, Rhode Island, and Wisconsin. Mississippi is holding a Republican runoff election to see who will challenge sixteen term Democratic incumbent Benny Thompson.
Mosques in New York City are struggling to house and feed migrants as the country's latest immigration surge becomes increasingly more African and Muslim. Leaders of a mosqin Harlem say their congregation is spending hundreds of dollars a night to host iftar, the traditional end of fasting during Ramadan. 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.
Sorry, Michael Barr, thank you. Time out the Bloombergy Sports Update with John Stashaur. John, Good morning, Good morning care.
The long range shooting and the playmaking ability of Caitly and Clark has grabbed the attention to the nation and her Iowa career not over yet. Clark scored forty one points with nine threes. She had twelve assists. Iowa beat LSU ninety four to eighty seven, avenging their loss to
the Tigers in last year's championship game. Now heading to the women's Final four in Cleveland were on Friday, Iowa will take on yukon The Huskies have a start of their own, Page Beckers and an eighty to seventy three win over USC had twenty eight points. This will be Yukon's twenty third Final four. They've gone to fifteen to the last sixteen. Both Yukon and NC State have their men's and women's teams heading to the Final four. The
Yankees are five and oh. Last time that happened was nineteen ninety two, which was actually the last Yankee team to finish under five hundred. Yanks won five to two at Arizona. Luis Heel in the rotation due to the Garrett Cole injury, pitched into the fifth inning, allowed only one hit. The Mets are zero and four. At City Field, they got great pitching for nine innings and lost to
Detroit five to nothing. Meanwhile, in Houston to two, De Guerrero prow ball tap Loco lets it go by Dubon Fields throws the first.
End time hoo Head hold down Blackco.
Seiderds the first to chop it too.
His arms and the rest of his teammates come out to mabo.
I'm abmb just the eighth Big League starver on ol Blanco, and he threw the seventeenth no hitter in Astro's history. At the Garden, Rangers lost to Pittsburgh five to two, and in a five game win streak, just the Rangers second lost the past month. Islanders in Philadelphia gave up the time goal with ten seconds left, but one four to three and a brock Nelson goaling over time his thirtieth NETS lost in Indiana one twenty three to one. Eleven Pacers scored forty three in the first quarter. The
Celtics fifty ninth win one eighteen one to fourteen Nets. Charlotte, johnh DASHEDWIAR Bloomberg Sports Karen.
Nathan all right, John, thank you, and futures now little change SNP at NASDAG Futures anyway down. Futures down three tentsive uppercent, the ten year treasury yield four point three one per nimex screwed oil up one point six percent at eighty five dollars seven cents a barrel.
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 Daybreak, Good morning of Nathan Hager, let's get a little bit more on what's happening in this market, the slight pullback in futures in this surge that we're seeing in commodities this morning, with bond traders pushing back their bets on a first rate cut move from the Federal Reserve, following a gauge of manufacturing activity in the US moving into expansion territory for the first time in nearly a year and a half. For more on this,
we're joined by Bloomberg's Kritty Gupta. So, Critty, we have seen so much data over the last several months showing continued strength in this economy. Now this surprise ism manufacturing data showing expansion for the first time since September twenty twenty two, really does seem to be feeding into this narrative that the Fed really doesn't need to be in a rush to cut rates.
Yeah, it's an interesting one because for so long that's what the exactly the markets are are banking upon, and it's been the story of consumer resilience, as you've pointed out. But Nathan, you know as well as anybody that not all inflation is created equal, And I think what was so striking about this ISM data in particular, is that off the back of it, you saw anywhere from ten to fourteen basis points of moves in the treasury market
across the curve off of just an ISM report. And the reason I kind of put emphasis on that is because you traditionally don't see that kind of reaction and sustained reaction throughout the trading day off of just one report, and especially the ISM of all places, specifically because manufacturing makes up only a fraction of the US economy relative to the services data, so you see more sustained moves
off services data rather than manufacturing. So this was interesting, but it comes in tandem with, as you say, this building narrative CPI, the PCE numbers, the labor numbers as well, And I think what's important about the ISM data and the way it's actually calculated is that it is more sensitive to factory outputs, to new orders, to wage stories, especially in parts of America that have more of an
industrial focus on that as well. All of that are things that are in line with that get factored into the PPI numbers and the PCE deflator numbers. Essentially the pieces of data that the FED pays more attention to gend just the headline CPI, and that's kind of the building blocks that are taking place at the moment when factoring in this data.
It was interesting, though, wasn't it to see this data come out this surprise on the manufacturing side. When we did get that PCE data on Friday that we heard from FED Chairman Jerome Powell saying that it came in basically in line with their expectations even with goods inflation in that PCE data is showing a little bit more stickiness this time around.
Yeah, and I think that's the concern here, right, And you heard that Withchair Powell in some of his commentary there. He said that even though the pc numbers came in, you know on par we have to be He issued a lot of caution. He said, we have to be careful about the rate cut story. As if it's a surprise, they wouldn't be careful, but they really risk this kind of spiral that if you go with one cut, how many more cuts follow. You can't have just one move
and then not touch anything. It's kind of the start of a longer program, or at least that's the expectation of economists and markets, and that's that first move that they want to get right. The goods piece of it is really important because in twenty twenty one, we're kind of going through our inflation saga. Over the last couple of years, post COVID, post pandemic, the reopening trade, so much of the supply chain hiccups, et cetera. Were cost driven.
It was commodity prices, oil prices hitting one hundred dollars a barrel and more. It was the grain story coming out of Ukraine and the war there. It was gold prices and raw materials becoming more expensive with this move in evs and chips. Basically the tip big take, as this was commodity driven inflation that ended up in shortages around the world and therefore supply chain snags. The inflation story right now is service is driven. It's wages driven.
Everybody wants a little bit more money in their paycheck in line with the inflationary pressures that they've been dealing with with prices that have been and costs that have been passed on to the consumer by major corporations around the world. The concern around a reacceleration is more goods driven and commodity driven this time around, and that's arguably, to your point, more sticky and they'refore more dangerous.
All right, Bloomberg's Critti Gupta with a look at some of the latest economic data.
Credit.
Thank you.
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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