Newsom Loves Biden, Trump Wins South Carolina & AT&T Outage Revealed | PBD Podcast | Ep. 370

CNN's parent company Warner Brothers Discovery is facing hardships, with weak TV advertising leading to a significant drop in stock, while the news network itself struggles with falling ratings and looks toward a potential sale.

CNN, part of the Warner Brothers Discovery conglomerate, is suffering from a sharp decline in TV advertising revenue, resulting in a stock fall of 12 percent. The network is averaging only 538,000 primetime viewers, trailing behind competitors like Fox News and MSNBC. The network's challenges are compounded by layoffs, cost-cutting measures, and the difficulty of clearly defining its image amidst perceptions of a leftist slant and the absence of major talent such as Don Lemon.

Attempting to pivot in the face of these struggles, the company has offered CNN for free on its profitable streaming service, Max, in 2023, despite the service's content purges and layoffs. CEO David Zaslav had a challenging year with CNN, involving significant personnel and budget changes. CNN's ratings are half that of Fox News and other sector leaders.

During the Allen Conference in Sun Valley, Idaho, Zaslav made attempts to sell CNN, even considering "parking" the network with a potential buyer at a discount rate. Despite its challenges, CNN's value is estimated to range between one and a half to two billion dollars, based on the strength of its brand and its positioning—contingent on the network's ability to reclaim viewership through a move toward a more centrist political stance.

Adam Sosnick points out that CNN is lagging behind in ratings compared to F ...

AT&T customers recently experienced an unexpected mobile service outage, and while the cause is still under investigation, there's speculation that it may have been the result of a cyber attack originating from China. The telecommunications giant has yet to confirm the exact nature of the incident, but the potential link to a foreign cyber attack has raised concerns about the vulnerability of digital infrastructure and the growing sophistication of cyber threats. As cybersecurity experts look into the matter, AT&T is w ...

The Federal Reserve, closely monitoring inflation measures, is anticipated to hold firm on its stance of raising interest rates to combat inflation, with recent data suggesting a move towards another rate hike.

According to the host, the Fed's preferred inflation gauge has indicated the most significant increase in a year, leading to speculation about the implications for interest rate policies. The core personal consumption expenditures (PCE) price index, which excludes volatile food and energy costs, is projected to have a month-over-month increase of 0.4%.

The stance of the Federal Reserve suggests no rush to lower borrowing costs, with plans to reduce them only when it is confident that inflation is retreating sustainably. The expected data is anticipated to support the Fed's current position and could even temper market expectations for an upcoming rate cut.

Market consensus reflects uncertainty, indicating only a 5% chance of a rate cut at the next Federal Reserve meeting, with opinions divided on the likelihood of a rate cut by May 1st. Bloomberg's analysis posits that rate cuts will be slower than previously expected, with only three anticipated throughout the year.

The enduring levels of inflation suggest that the Federal Reserve will not be reducing interest rates soon, an action that will have ramifications on mortgage rates and the potential to affect the housing market. Additionally, the market conditions described as "extreme greed" add further concern for the Federal Reserve, likely influencing its cautious decisions regarding interest rates.

Hollywood residents grow frustrated with local leaders over homeless problem

Residents of Hollywood are growing increasingly dissatisfied with their local leaders due to the ongoing homeless challenges they face. Safety concerns, sanitation issues, fires in encampments, human waste on sidewalks, and open-air drug use fuel their frustration. Particular disappointment is directed toward Mayor Karen Bass and Council Member Nithya Ramon. Alexa Scarpillos from LAPD's Community Police Advisory Board endorses Ethan Weaver for City Council, reflecting the community's wish for new leadership. Jeannie Griffin, a resident who regrets voting for Ramon, echoes this sentiment, hoping Weaver wins the upcoming election.

Despite advocating for long-term solutions to homelessness, Council Member Ramon encounters criticism due to a reported 9% rise in homelessness in LA County. The increase in encampments has intensified the frustration among residents with leaders like Bass and Ramon.

Google's Gemini has had a rough week

Google's AI model, Gemini, had a tumultuous week filled with controversies and technical blunders. Notably, Gemini failed to offer appropriate responses to sensitive queries, drawing substantial criticism. The AI did not adequately respond when comparing Elon Musk to Hitler and faltered in recognizing a white man in search results. The AI was also condemned for not clearly denouncing pedophilia, leading to an outcry over perceived sympathy towards abusers.

In response, Google labeled the AI's answer as appalling and inappropriate and announced updates to Gemini, addressing the issue by affirming that pedo ...