0:02

Bloomberg Audio Studios, Podcasts,

0:05

Radio News.

0:10

Good morning, I'm Nathan Hager and I'm

0:12

John Tucker. Here are the stories we're following today.

0:14

John, First, major developments this morning

0:17

involving the war in the Middle East. The US

0:19

has paused a shipment of bombs to Israel

0:22

over worries that Israel's nearing a decision

0:24

to launch a wide ranging military offensive

0:27

on the southern Gaza city of Rafa. We

0:29

get the details from Bloomberg's Mark Champion.

0:31

It's very significant in the sense that the US

0:34

has said that it would

0:36

be behind Israel all the way

0:38

after the attack on October seventh

0:40

by Imus, and this is the first time

0:42

where we've seen them use the leverage

0:45

that the US has as an arms

0:47

supplier to try and pressure

0:49

the Israelis to alter their

0:52

course in Gaza.

0:53

Bloomberg's Mark Champion says Biden administration

0:55

officials concerned about the damage the bombs

0:57

could inflict on dense urban settings

1:00

like Rafa, where more than one million displaced

1:02

Palestinians are sheltering.

1:04

And we want to update you on the latest legal

1:06

cases against Donald Trump. The hush

1:08

money trial against the former president resumes

1:10

of new York Tomorrow. Yesterday, one

1:12

of the prosecution's key witnesses, the adult

1:15

film actors Stormy Daniels, took the witness

1:17

stand scathalitis from Bloomberg

1:19

Law host June Grosso.

1:20

In New York.

1:21

After hearing Stormy Daniel's name countless

1:24

times. Yesterday, the jurors got

1:26

a chance to hear her testify about

1:28

a sexual encounter the adult film

1:31

actress says she had with Trump in two

1:33

thousand and six, although Trump denies

1:35

it. Daniel's account often included

1:38

graphic and salacious details,

1:40

so much so that the defense asked

1:42

for a mistrial, arguing that her

1:44

testimony had gone too far and

1:46

prejudiced the jury. The judge

1:48

denied the mistrial in New York,

1:51

June Grosso Bloomberg Radio, all.

1:52

Right, June, thank you.

1:53

Meanwhile, the federal judge in Florida for presiding

1:55

over former President Donald Trump's classified

1:58

documents case has cancer the

2:00

May twentieth trial date, postponing it

2:02

indefinitely. US District Judge Alien

2:04

Cannon, who is appointed by the former president,

2:07

has come under intense criticism for failing

2:09

to make timely decisions and for issuing rulings

2:11

that favor Trump.

2:12

And sticking with the legal news, a long fight

2:15

may be in store over the future of TikTok,

2:17

the video sharing app, suing over the

2:19

new law aimed at forcing its Chinese

2:21

owner, Byte Dance to sell it. TikTok

2:24

says the law would stifle users free

2:26

speech, but former Treasury Secretary

2:28

Steve Manushan says he still wants to buy

2:31

TikTok. He thinks he can replicate

2:33

the app's secret sauce it's video

2:35

recommendation technology.

2:37

I do believe the algorithms could be rebuilt,

2:40

So my plan if we were to purchase it

2:42

would be to rebuild the technology

2:45

under US leadership, make

2:47

sure that it's all disconnected from

2:49

by Dance going forward, and

2:51

that it is very ro Boston

2:53

secure.

2:54

Former Transferry Secretary Steve Manushan

2:56

spoke with Bloomberg for the Milken Conference of Beverly

2:59

Hills of the TikTok loss

3:01

ay the current algorithm could put

3:03

Chinese government propaganda on users feeds.

3:06

Both TikTok and Beijing deny

3:08

that.

3:08

And sticking with technology John, The US is

3:10

said to have provoked licenses allowing Qualcom

3:13

and Intel to sell semiconductors

3:16

to China's Huawei Technologies Bloomberg.

3:18

Steve Potis has more from Washington.

3:21

Sources say the move effects sales of chips

3:23

for Huawei's phones and laptops. The

3:25

move is key to preventing China from developing

3:28

advanced AI. The US is also

3:30

considering sanctions against six

3:32

Chinese firms that could also supply

3:35

chips to Huawei. Meantime,

3:37

Saudi Arabia's investment fund for chips

3:39

and AI said it would divest

3:42

from China if Washington asked it

3:44

to do so. In Washington, Steve

3:46

Podisk Bloomberg Radio.

3:47

Ry Thanks Steve, and some positive news for

3:50

Apple out of China this morning. Chinese

3:52

iPhone shipments jumped about twelve percent

3:55

in March after Apple and its retailers

3:57

slashed prices. That's about from

4:00

a thirty seven percent slump in the

4:02

first two months of twenty twenty four. The

4:04

stock is up two thirds of a percent in

4:06

early trading.

4:07

Well John Heading to space or not. The

4:10

first crude mission for Boeing's Starliner

4:12

space capsule is going to be grounded

4:14

a little longer. The initial flight was scheduled

4:16

two days ago, it was scrapped for a technical

4:19

issue. Now it's been pushed back to at least

4:21

May seventeenth, and.

4:23

Turning to the economy, the Minneapolis Fed

4:25

President Neilkush Curry says interest rates are

4:27

likely to be camp where they are for an extended

4:30

period of time. Coush Curry says

4:32

more data is needed to know whether the progress

4:34

on getting inflation back to the two percent target

4:37

has stalled.

4:38

The second half of twenty twenty three

4:40

surprised us at how rapidly

4:42

inflation fell. That was really good news,

4:45

and the economy remained strong. We

4:47

all hoped that was going to continue. The

4:49

first quarter of this year, it seems

4:51

like it's stalled out.

4:52

Gush Curry added that a rate cut this year is

4:55

quote certainly still a possibility.

4:57

He made the comments to Bloomberg at the Milkin

5:00

Institute Global Conference in Beverly Hills.

5:02

Now, while investors in the US debate when the FED

5:04

cuts rates, John and other central banks already

5:06

making a move. Sweden's reeks Bank cut

5:09

its benchmark rate for the first time in

5:11

eight years. The central Bank in Stockholm

5:13

lowered the policy rate by a quarter points to three

5:15

point seventy five percent, said it could

5:18

be reduced twice more in the second

5:20

half of this year.

5:21

Add some good news this morning for customers of the

5:23

bankrupt crypto exchange FTX.

5:26

They're said to get full recovery

5:28

of their funds. Let's get details from

5:30

Bloomberg's Doug Krisner.

5:32

FTX has amassed billions of dollars more

5:34

than it needs to cover what customer's lost

5:36

when the exchange collapsed in November twenty

5:38

twenty two. The extra cash will be

5:41

used to pay interest to more than two million

5:43

FTX customers. It's a rare outcome,

5:45

since creditors typically receive just pennies

5:48

on the dollar in US bankruptcies. Once

5:50

FTX finishes selling all of its assets,

5:53

the company will have as much as sixteen point three

5:55

billion dollars in cash to distribute.

5:57

The company owes customers and other non

6:00

governmental creditors about eleven billion

6:02

dollars. Although all debts will

6:04

be paid in full plus interest, nothing

6:06

will be left over for equity holders. In

6:08

New York Time, Doug Prisoner, Bloomberg Radio.

6:10

All right, Doug, thank you. And if you're a fan of luxury watches,

6:13

this story is for you. They're apparently having

6:15

a tough time holding their value at the moment. The

6:17

Bloomberg Subdial Watch index of the

6:19

secondhand watch market has dropped ten

6:21

point two percent in the last twelve months.

6:24

Cartier was the only major brand two gain

6:26

value in the last year, up two point

6:28

four percent. Watch demand peaked

6:31

during the pandemic in April twenty twenty

6:33

two, but values for the most in demand

6:35

models have dropped sharply with higher

6:37

interest rates and declining cryptocurrency

6:40

values.

6:44

Yes five oh seven of Well Street Time

6:46

Now for a look at some of the other stories making news

6:48

in New York and to round the world.

6:50

And for that we're joined by Bloomberg's Michael

6:53

Barram Michael, Good morning.

6:54

Good morning John. Campus protests

6:56

were cleared at the University of Chicago.

7:00

Officers broke up a pro Palestinian demonstration

7:02

that had occupied the campus's squad

7:05

for the past nine days. One

7:07

of the protesters criticized the police action.

7:10

I think it's terrible.

7:10

I think it's discussing that we have militarized.

7:12

Police in an educational space to

7:14

break up a peaceful protest.

7:16

Meanwhile, President Biden reiterated

7:18

his stance against anti Semitic threats

7:20

and actions, particularly ones on college

7:23

campuses. Pro Palestinian protesters

7:25

continued to demonstrate against the war in

7:27

Gaza and the financial support

7:29

universities have been giving Israel. At

7:32

a keynote address at the US

7:34

Holocaust Memorial Museum's annual

7:36

Days of Rememberance ceremony on

7:38

Capitol Hill, the President says

7:40

hate field speech will not be tolerated.

7:43

While it's a tax destroying property,

7:46

there's not peaceful protest.

7:48

It's against the law, and

7:50

we're not a lawless country.

7:52

Most of the protests on college campuses

7:54

have been peaceful, but law enforcement

7:57

have made hundreds of arrests.

7:59

Storms have battered parts

8:01

of the Midwest, unleashing heavy rain, gusty

8:04

winds, and tornadoes in the region.

8:06

Tuesday severe when their outbreak came a day

8:08

after a deadly twister ripped through

8:11

a small Oklahoma town and killed at

8:13

least one person. Forecasters

8:15

warned that the storms could come out of the region

8:17

this morning. Far Right

8:19

Representative Marjorie Taylor Green says

8:21

the ball is in House Speaker Mike

8:24

Johnson's court after two days

8:26

of meetings between the pair over her

8:28

push to have him removed. Green

8:30

says she wants the Speaker to commit to several

8:32

actions. They include no additional

8:35

funding for Ukraine and funding

8:37

the Office of the Special Console what.

8:40

I'm trying to do is give Mike Johnson

8:42

a chance to be a Republican speaker, and

8:44

he seems willing to try to do that.

8:47

Speaker Johnson's old reporters he and

8:49

Green are still talking through ideas, but

8:51

stressed this is not a negotiation

8:54

and that he will still continue to do

8:56

his job. The Manhattan District Attorney's

8:59

Office says streamer Kai

9:01

Senant will not be prosecuted

9:03

and charges will be dismissed for his

9:05

role in inciting a riot in Union

9:08

Square last summer. Back in August,

9:10

the crowd of thousands packed Union

9:12

Square for Senat's Twitch giveaway

9:15

that quickly got out of hand. Sanana

9:17

and two others paid about fifty seven thousand

9:19

dollars in restitution. Global News

9:21

twenty four hours a day and whenever you want

9:23

it with the Bloomberg News. Now, I'm Michael

9:25

Barr, and this is Bloomberg.

9:27

John.

9:28

All right, Michael, thank you, and

9:34

time down for a Bloomberg Sports upday.

9:36

Tan for that, Here's charn Stesshawer.

9:38

All right, John.

9:39

The Rangers in their first five playoff

9:41

games hardly trail different story.

9:43

Game two at the Garden with Carolina, they only led

9:46

for four minutes of the first period, but six minutes

9:48

into the third Chris Crider with his forty

9:50

third career playoff goal, most in Rangers history,

9:53

and the game was tied to three for the next

9:55

forty one minutes.

9:56

It finally ended in the second overtime.

9:59

Prider, I had to get back out for a shot

10:01

at clocks. I've had a chat towards Tonet knockdown,

10:03

true.

10:03

Check scars.

10:06

His Stars.

10:07

That's at Tcheck wins Game

10:10

two in double overtime, has

10:13

pop by his Ranger.

10:14

Teammates on WEP and Trocheck

10:17

scored a goal for the fifth straight game earlier

10:19

two Ranger goals for alexis La frontire

10:21

fifty four says for Igor sister,

10:23

and he was sensational. Rangers yet to

10:26

lose a playoff game head to Raleigh of

10:28

two games to note, also overtime in Dallas

10:30

after the Stars blew a three nothing League Colorado

10:32

one that was also four to three NBA

10:35

easy series opening wins to the two top seeded

10:37

team Celtics by twenty five over

10:40

Cleveland, Oklahoma City by twenty two

10:42

over Dallas Nixon Pacers. Game two

10:44

tonight at MSG and the already thin

10:46

Knicks bench just got thinner. Mitchell

10:49

Robinson reinjured the left ankle that

10:51

caused him to miss fifty games in the regular season.

10:53

He won't play until next season.

10:55

The Astros have been dominant the last seven

10:57

years. Not this year, Not so far. Twelve and twenty

11:00

Yankees beat Houston at the Stadium ten

11:03

to three. Alex Perdugo got him going three

11:05

run homer first enning off Justin Verlander,

11:07

who gave up seven runs, most he's ever allowed

11:10

in thirty seven career Stars versus the

11:12

Yanks. Mets won seven to five in Saint Louis

11:14

to get back to five hundred. Brandon Nemo three

11:16

run homer in a six run fifty inning. Pete

11:18

Alonzo, who had been one for his last thirty

11:20

two, had a homer at two run double.

11:23

Red Sox lost in Atlanta, four to two. Beltway

11:25

Series underway in DC Nationals. Shout out

11:27

the Oils three nothing. Redhot Phillies made it eighteen

11:30

of their last twenty one ten to one over Toronto.

11:32

John Stashan, We're Bloomberg Sport. Johnnan Naked.

11:37

Coast to Coast on Bloomberg Radio

11:39

nationwide on Sirius XM and

11:41

around the world on Bloomberg dot

11:43

Com and the Bloomberg Business app. This

11:46

is Bloomberg Daybreak. Good

11:48

morning.

11:48

I'm Nathan Hager with Israel apparently

11:51

poised for a full scale attack on the southern

11:53

Gaza city of Rafa. At the US is

11:56

trying to apply pressure to scale things

11:58

back, pausing a shipment of bombs.

12:01

They could do heavy damage to urban areas

12:03

like Rafa.

12:04

For the latest.

12:05

We're joined now by Bloomberg's Derek

12:07

Wallbank. Derek, good morning. What

12:09

does this pause potentially mean

12:12

for Israel's war plans?

12:14

Nathan, It's good to be with you. As always. The

12:17

aim of this, we are

12:20

told, according to a senior Administration official,

12:23

is that the US

12:26

opposes potential military

12:28

offensive on Rafa. It's really,

12:31

honestly, it's that simple. The

12:33

US, I think, is very concerned about

12:36

what these weapons could do in

12:38

an urban area like that. You're talking about

12:40

a place where about one point

12:42

four million Palestinians

12:44

are sheltering. Obviously,

12:47

Israel has said that Rafa

12:50

is a key place of operations for Hamas,

12:53

and talks

12:55

to get to a ceasefire

12:57

or conclusion of hostilities

13:00

in this conflict have not been

13:02

conclusive. Have with

13:05

each side sort of trading blame as to who's

13:07

most responsible for that. There

13:10

are also, i think

13:12

growing i would say, operational

13:15

tensions between US President

13:17

Joe Biden and Israeli's Prime Minister,

13:20

Israel's Prime Minister Benjamin not Yahoo.

13:22

Right, there's there's been this. Biden

13:24

has been quite supportive of Israel's right

13:27

to protect

13:29

itself, to have defensive

13:31

operations, to to try

13:34

and reduce Hamasa's capacities

13:36

in some ways, but he has had real criticisms

13:39

over the way that this conflict

13:41

has played out on the ground in

13:43

Gaza. And so you're seeing this right now

13:46

come to a head. Biden does not want

13:48

to have direct

13:50

line responsibility for an

13:54

operation that he opposes.

13:56

But even with this bombshipment on

13:59

hold, this doesn't mean that all

14:01

weapons deliveries are all support from

14:04

the US to Israel is on hold,

14:06

right, So I mean, what could that mean for

14:09

the possibility of an

14:11

eventual Israeli invasion of this city.

14:14

Well, that's exactly right, Nathan. And you

14:17

know, the US had

14:19

included aid to Israel as

14:21

part of its recent national

14:24

security supplemental for Ukraine

14:26

and others. There had been

14:29

a desire, strong desire by the US,

14:31

and I think quite bipartisan to try

14:33

and replenish Israel's self

14:35

defense based weaponry.

14:38

It's iron dome, it's things

14:40

of that nature. Is to sort of stop inbound

14:43

missile attacks that might come from

14:46

from Iran or Iran

14:48

backed groups and things like that. So that part

14:50

is quite bipartisan. But as to say, you

14:53

are seeing, and I think you're seeing in

14:55

part in the protests that are taking place

14:57

at college campuses, but you are seeing I think

15:00

broader than that within some of the Democratic

15:02

coalition, including people that Joe Biden

15:04

needs their votes this November aal

15:09

a real disquiet or

15:11

much stronger over the idea

15:14

that the US is sending to Israel,

15:18

potentially some of these weapons that might

15:20

be used in these in these

15:22

attacks that Biden doesn't like. And so if you're

15:24

Joe Biden, you're sitting there saying,

15:26

look, you know, this isn't the way that I would want

15:28

you to prosecute this war. So do I

15:30

want to enable.

15:31

That You're listening to Bloomberg Daybreak today,

15:34

your morning brief on the story is making

15:36

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beyond. Look for us on your podcast

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15:57

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app, and on Bloomberg dot com. And I'm

16:14

John Tucker. Join us again tomorrow morning for all

16:16

the news you need to start your day right here on

16:19

Bloomberg day Break