Episode summary
Daybreak Weekend: Tesla Earnings, European Headwinds, Japanese Inflation | Bloomberg Daybreak:...
Bloomberg Daybreak: US Edition
· · Hosts: Nathan Hager
Summary
Nathan Hager previewed a week dominated by central banks, earnings, and geopolitical spillovers. On the Fed, a guest argued that Kevin Warsh’s Senate Banking Committee hearing on Tuesday is likely to bring pushback over the DOJ probe into Jay Powell and the Fed’s independence, and said the nomination could stall for weeks or months. The same guest said Powell would probably keep all of his current roles if Warsh is delayed, and that a future Warsh chair would still have trouble getting the rate cuts President Trump wants.
The show then turned to Tesla, Intel, and American Express. A guest said Tesla’s earnings will matter less for auto sales and more for updates on Robotaxi and Optimus, since Tesla is increasingly viewed as a robotics and driverless technology company. Intel was framed as a high-expectation turnaround story, with the guest warning that the stock may swing sharply because investors may be looking for more than the published estimates. American Express was presented as a consumer read-through, with attention on affluent cardholders and the company’s push into AI expense-management tools.
In London, Caroline Hepker and guests said European earnings are being pressured by the war in Iran, higher inflation, and possibly higher rates. In Asia, Doug Krizner’s segment said Japanese inflation is likely to jump on higher oil and import costs, which could complicate the BOJ’s rate decision, even as wage growth stays strong and yen intervention remains on the table.
Key takeaways
- A guest said Kevin Warsh’s Senate hearing could stall his Fed-chair bid for weeks or months because of concerns over the DOJ probe and Fed independence.
- The guest said Jay Powell would probably keep leading the Fed’s Board and FOMC if Warsh is not confirmed.
- Bailey Lipschultz said Tesla earnings are now mainly about Robotaxi and Optimus, not just car sales.
- Bailey Lipschultz said Intel may face a large post-earnings move because expectations are high after the stock’s sharp rally.
- Michael Msika said European earnings expectations look too high as the war in Iran pushes up costs and could delay stimulus.
- Brian Fowler said March Japan CPI should spike on oil and import costs, but the BOJ may still hesitate if Middle East uncertainty persists.
Notable quotes
“I do expect to see fireworks during the Senate Banking Committee hearing this Tuesday”
“until the DOJ probe is resolved, the best bet is that the uh nomination just sort of stays in committee, stalling out”
“this is no longer really a car company. This is a robotics company. This is a uh driverless technology company”
“as inflation expectations become unanchored, so too does actual inflation”
“we have the biggest pipeline we've had since 2005”
How the episode opens
This is Bloomberg Daybreak weekend, our global look at the top stories in the coming week from our Daybreak anchors all around the world. Straight ahead on the program, we look to Kevin Warsh's bid to be the next chair of the Federal Reserve. Plus, a preview of earnings from Tesla.
I'm Nathan Hager in Washington. I'm Caroline Hepker in London, where we're looking ahead to first quarter European earnings amidst broader headwinds. I'm Doug Krizner looking at how the war in Iran is impacting Japanese inflation.
That's all straight ahead on Bloomberg Daybreak weekend. On Bloomberg 1130 New York, Bloomberg 99.1 Washington D.C., Bloomberg 92.9 Boston, DAB Digital Radio London, Sirius XM 121, and around the world on bloombergradio.com and the Bloomberg Business App. Good day to you.
I'm Nathan Hager. We begin today's program with the Federal Reserve. On Tuesday, former Fed Governor Kevin Warsh is set to testify before the Senate Banking Committee in his bid to succeed Jay Powell as chair of the world's most powerful central bank.
For more on what to expect, we're joined by Stewart Paul, US economist with Bloomberg Economics. Of course, Stewart, as you know, this hearing is coming amid the backdrop of ongoing investigations into the current Fed Chair Jay Powell and Governor Lisa Cook. So, what can we expect fireworks on Capitol Hill?
That's a pretty sure bet. I do expect to see fireworks during the Senate Banking Committee hearing this Tuesday. Uh not only are we likely to see some pushback from Democrats, but even one very important Republican on the committee, and that's Senator Thom Tillis from North Carolina, has expressed concerns about the DOJ probe into the Fed chipping away at the Fed's independence.
And so, he pledged to halt Kevin Warsh's advancement through the nomination process until the DOJ probe is resolved.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- tesla earnings
- european earnings
- european headwinds
- japanese inflation
- iran war impact
Companies and tickers mentioned
- TSLA
- Tesla
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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