Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. Good morning, I'm Nathan
Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're
Speaker 1: following today.
Speaker 2: Karen, we have said this twenty nine other times this
Speaker 2: year on Bloomberg Daybreak. But once again stocks begin the
Speaker 2: day at all time highs, and it was tech stocks
Speaker 2: once again, driving the S and P five hundred to
Speaker 2: its thirtieth record close of the year, helping the Nasdaq
Speaker 2: one hundred come closer to the twenty thousand mark. Paul Christopher,
Speaker 2: head of Global Investment Strategy at Wells Fargo Investment Institute,
Speaker 2: says tech stocks may actually be the safe play.
Speaker 3: And maybe there's a certain extent to which even some
Speaker 3: of these high flying tech stocks have become defensives. If
Speaker 3: you think about the upcoming elections, if you think about
Speaker 3: the economy slowing down, Gee, should I buy staples or
Speaker 3: should I buy discrectionary aud Heck with it, I'm just
Speaker 3: going to buy something reliable and I'm going.
Speaker 1: To go tech.
Speaker 3: I think that's the mindset of some investors today.
Speaker 2: Also, that's Paul Christopher of Wells Fargo Investment Institute Long
Speaker 2: bets and the so called Magnificent seven technology behemoths now
Speaker 2: stand at sixty nine percent. That is among the most
Speaker 2: single crowded trades in history. According to an investor survey
Speaker 2: by Bank of America.
Speaker 1: Well Nathan has doog sit at record highe The debate
Speaker 1: over interest rates is still in focus. Philadelphia Fed President
Speaker 1: Patrick Harker says he sees one rate cut appropriate for
Speaker 1: this year.
Speaker 4: I have a forecast for inflation, employment and economic activity
Speaker 4: slowing but above trend growth, a modest rise in the
Speaker 4: unemployment rate, and a long glide back to target for inflation.
Speaker 4: If all of that happens to be as forecasted, I
Speaker 4: think one rate cut would be could be appropriate by
Speaker 4: your end.
Speaker 1: Philadelphia Fed President Patrick Harker also said he sees two
Speaker 1: cuts or none as possibilities, depending on the data.
Speaker 2: In Company News Group is putting one of its least
Speaker 2: glamorous businesses front and center today. More on that from
Speaker 2: Bloomberg's Doug Prisner.
Speaker 5: It's the services business, and it helps cities international clients
Speaker 5: manage and move cash globally. Today, the bank is aiming
Speaker 5: to show how the segment can boost profitability. It's already
Speaker 5: producing a growing share of cities profits, accounting for nearly
Speaker 5: half the total last quarter. At the bank's Manhattan headquarters,
Speaker 5: CEO Jane Fraser and CFO Mark Mason will pitch investors
Speaker 5: on the services business. Now typically cities, trading operations and
Speaker 5: credit card business attract more questions on earnings calls, although
Speaker 5: in April Fraser, not for the first time, called it
Speaker 5: the firm's crown jewel in New York. I'm Doug Prisoner
Speaker 5: Bloomberg Radio.
Speaker 1: All Right, Doug, thanks well. Boey CEO Dave Calhoun will
Speaker 1: be on Capitol Hill today for a hearing focusing on
Speaker 1: the planemakers safety culture. We get more from Bloomberg's Charlie Pellett.
Speaker 6: The hearing will put the CEO on the spot to
Speaker 6: defend his record and salvage his legacy as he prepares
Speaker 6: to step down later this year. Investors who have endured
Speaker 6: a thirty two percent stock slump this year and watched
Speaker 6: Boeing's credit rating come dangerously close to junk status, have
Speaker 6: already shifted their focus to Calhoun's yet undisclosed successor. Sources
Speaker 6: say the new chairman, Steve Mollenkopf, who took over as
Speaker 6: part of a senior management shake up in March, is
Speaker 6: leading the search for the next CEO, and the hunt
Speaker 6: has picked up speed in recent weeks. In New York,
Speaker 6: Charlie pet Bloomberg Radio.
Speaker 2: Thanks Charlie and other big companies in the government's crosshairs.
Speaker 2: The Federal Trade Commission is suing Adobe, accusing the software
Speaker 2: company of violating consumer protection laws by making it too
Speaker 2: difficult for consumers to cancel subscriptions. An Adobe spokesperson did
Speaker 2: not respond to a request for comment. Users of Adobe
Speaker 2: products have long complained about the expense of canceling subscriptions.
Speaker 2: Accessing Adobe Suite of apps can cost more than seven
Speaker 2: hundred dollars a year for individuals well.
Speaker 1: Turning to politics, now, Nathan in Biden is about to
Speaker 1: take sweeping action to protect undocumented migrants while trying to
Speaker 1: soften criticism about his actions at the border. We get
Speaker 1: the story from Bloomberg Steve Potisk in Washington.
Speaker 7: The President will announce a streamlined path to legal status
Speaker 7: for more than a half million immigrants. Under the new policy,
Speaker 7: spouses and children of US citizens who've been in the
Speaker 7: country at least a decade will be able to apply
Speaker 7: for permanent residency without having to leave the country first.
Speaker 7: The move could be a counterweight to an order the
Speaker 7: President signed earlier this month aimed at curbing asylum claims.
Speaker 7: The president plans to roll out the policy today at
Speaker 7: an anniversary event for Deferred Action for Childhood Arrivals, the
Speaker 7: Obama era program that protects undocumented migrants who came to
Speaker 7: the US as children. In Washington, Steve Potisk Bloomberg.
Speaker 2: Radio, Thank you, Stephen. We're getting a look at what
Speaker 2: foreign policy might look like if Donald Trump returns to
Speaker 2: the White House. From the former president's last national security advisor,
Speaker 2: Robert O'Brien, says the US should cut economic ties with
Speaker 2: China completely, consider moving the entire US Marine Corps to Asia,
Speaker 2: and resume live nuclear weapons tests. O'Brien lays out those
Speaker 2: proposals in an article set to appear in Foreign Policy Magazine. Now,
Speaker 2: there's no guarantee Trump would follow those ideas in a
Speaker 2: second term, but O'Brien says he has remained in regular
Speaker 2: contact with the former president. A State Department appointee who
Speaker 2: helped him prepare the article says he gave a copy
Speaker 2: too the Trump campaign.
Speaker 8: Well.
Speaker 1: Nathan TikTok's Chinese owner by Dance, has until this Thursday
Speaker 1: to explain the reason behind its lawsuit against the US.
Speaker 1: It's a high stakes bid to overturn a new law
Speaker 1: that would ban TikTok in the US unless by Dance
Speaker 1: sells it. But that lawsuit is going to test the
Speaker 1: secrecy of lawmakers briefings, and Bloomberg's Amy Morris explains.
Speaker 9: Congress members held a series of secret briefings before deciding
Speaker 9: to pass the law that could lead to a ban
Speaker 9: of TikTok in the US. By Dance suit in One
Speaker 9: of its main arguments is that Congress doesn't have any
Speaker 9: public proof of a nationals seecurity threat. Well, the challenge
Speaker 9: could make it to the Supreme Court, but it also
Speaker 9: poses a test of whether US federal agencies will divulge
Speaker 9: the national security secrets that they shared with lawmakers so
Speaker 9: they can defend the new law. Senator Richard Blumenthal argues
Speaker 9: that that wouldn't be necessary anyway, because the burden of
Speaker 9: proof falls to TikTok in Washington. Amy Morris Bloomberg Radio.
Speaker 2: Okay, Amy, thank you. Will be monitoring Russian President Vladimir
Speaker 2: Putin as he visits North Korea today for the first
Speaker 2: time in twenty four years. North Korea is suspected of
Speaker 2: sending missiles and millions of rounds of munitions to help
Speaker 2: Moscow continue its offensive in Ukraine. Melinda Herring, senior fellow
Speaker 2: at the Atlantic Council's Eurasia Center, says, while the trip
Speaker 2: is concerning, it is also a reminder of Putin's isolation
Speaker 2: on the world stage.
Speaker 9: One thing that I would keep by eye on is
Speaker 9: are they going to be cutting more deals to make
Speaker 9: sure that the Russians have enough shells too. I think
Speaker 9: it shows how isolated Vladimir Putin is. He doesn't have
Speaker 9: very many friends.
Speaker 2: He's got North.
Speaker 1: Korea, and he's got China and a few other people.
Speaker 2: The Atlantic Council's Melinda Herring says, the fresh delivery of
Speaker 2: billions of dollars in arms to Ukraine from the US
Speaker 2: and European allies will need to be bolstered by further
Speaker 2: support next year.
Speaker 1: Time now for a look at some of the other
Speaker 1: stories making news in New York and around the world.
Speaker 1: For that, we're joined by Bloomberg's Michael Barr.
Speaker 7: Michael, Good morning, Good morning, Karen.
Speaker 10: Extreme heat alerts remain in effect for tens of millions
Speaker 10: of people in the US as cities, including Chicago break
Speaker 10: heat records. States in the Midwest started to bake Monday
Speaker 10: in the dangerous heat wave that was expected to stretch
Speaker 10: from Iowa to Maine into at least Friday. The mid
Speaker 10: Atlantic and New England are likely to see highs in
Speaker 10: the nineties as the week progresses. Excessive humidity will make
Speaker 10: it feel even more oppressive. Officials are warning people to
Speaker 10: take precautions, such as drinking plenty of water and staying indoors.
Speaker 10: New York City Mayor Eric Adams says this is extremely
Speaker 10: hot for June.
Speaker 11: With climate chain leading to more frequent and intense heat.
Speaker 11: Summers are different than they were before, and so we
Speaker 11: should expect and be prepared for the hot weather that
Speaker 11: is coming.
Speaker 10: Mayor Adams is also urging New Yorkers to check on
Speaker 10: elderly neighbors and pets. Houston officials say they are ready
Speaker 10: for the first major taste of tropical weather this summer.
Speaker 10: A tropical cyclone is forecasted to hit Mexico and portions
Speaker 10: of Texas later today. It's about fifty miles southeast of Houston.
Speaker 10: Firefighters in the mountains north of Los Angeles are battling
Speaker 10: a sixteen thousand acre wildfire that has caused evacuations in Gorman, California.
Speaker 10: Firefighters who made some progress on Saturday and Sunday flames
Speaker 10: that were raging in the strong winds. However, people with
Speaker 10: respiratory problems have been worned to limit time outside. James Gore,
Speaker 10: a Sonoma County supervisor, remembers back to the twenty seventeen
Speaker 10: brush fire that caused very dangerous conditions.
Speaker 12: Tubs fire, the Snowma Complex fires. Everybody got caught on
Speaker 12: their heels, We got smoked. There was this mantra here
Speaker 12: that was never again, not never a fire again, but
Speaker 12: never get caught on your heels again.
Speaker 10: So far, the point Fanier is about twenty percent contained.
Speaker 10: Senate Democrats are set to advance legislation de band bump stocks.
Speaker 10: The vote could come as soon as today. It follows
Speaker 10: the Supreme Court ruling last week striking down a Trump
Speaker 10: Arab band. Senate majority leader Chuck Schumer of.
Speaker 13: New York Friday's ruling is yet another warnings that this
Speaker 13: MAGA Court is going off the deep end, aligning itself
Speaker 13: more and more with the most extreme elements of the
Speaker 13: hard right.
Speaker 10: Schumer says the Supreme Court has struck down freedom of choice,
Speaker 10: environmental protections, affirmative action, districting, gun safety and more. Global
Speaker 10: news twenty four hours a day and whenever you want
Speaker 10: it with Bloomberg News Now. I'm Michael Barr. This is
Speaker 10: Bloomberg Karen.
Speaker 1: Orright, Michael, Thank you time now for the Bloomberg Sports Update,
Speaker 1: which an stash hour John Good Morning.
Speaker 14: Morning Care. In the Boston Celtics had at dynasty of
Speaker 14: the nineteen sixties, won two titles in the seventies, three
Speaker 14: more in the eighties, had only won the NBA championship
Speaker 14: once since nineteen eighty six. That was one exactly sixteen
Speaker 14: years ago. And now the Celtics are once again the
Speaker 14: top the basketball world.
Speaker 8: Confetti guns shooting green and white confetti and making the
Speaker 8: most beautiful blizzard you have ever seen, rained down on
Speaker 8: a crowded court at TD Guardy. The final score Boston
Speaker 8: one oh six Dallas eighty eight. The Boston Celtics are
Speaker 8: world champions for the eighteenth Tome WVZ.
Speaker 14: Game five was a round. Celtics never trailed up by
Speaker 14: twenty at half times. Jason Tatum scored thirty one points.
Speaker 14: He had eleven assists. Jalen Brown at at twenty one.
Speaker 14: He was Finals MVP. Look at Donsons led Dallas with
Speaker 14: twenty eight. Celtics won four series, never lost more than
Speaker 14: one game in any of them. So the NBA season
Speaker 14: is over. Hockey might end tonight. Edmonton plays Game five
Speaker 14: at Florida. The Panthers lead three to one the Stanley Cup.
Speaker 14: We'll be in the house. What's gotten into the Mets.
Speaker 14: They had a stretch where they went ten to twenty five,
Speaker 14: but then arrow ride in a six game winstry. They've
Speaker 14: taken ten in the last twelve and it was fourteen
Speaker 14: to two in Texas. Mets had twenty two hits. Francisco
Speaker 14: Lindor had four, four other Mets had three. Brandon Immo
Speaker 14: drove in four. Red Sox won seven to three in Toronto.
Speaker 14: Yankees begining a big series the Stadium tonight. Baltimore comes
Speaker 14: in only game and a half behind, and the Yanks
Speaker 14: will be without Anthony Rizzo broke his hands Sunday. He's
Speaker 14: going to be out four to six weeks. Garrett Cole's
Speaker 14: been out all season. He's going to make his debut tomorrow,
Speaker 14: back from the elbow injury. When we last saw Rory McElroy,
Speaker 14: he was missing two short putts that cost him a
Speaker 14: chance to win the US Open. He bolted out of
Speaker 14: Pinehurst without speaking to the media. McElroy released a statement
Speaker 14: that called Sunday the toughest day of his career. He's
Speaker 14: withdrawn from this week's tournament near Hartford, says he'll return
Speaker 14: for the Scottish and British opens next month. John Stashanward,
Speaker 14: Bloomberg Sports Kndon Nathan.
Speaker 15: Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 15: and around the world on Bloomberg dot Com and the
Speaker 15: Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm
Speaker 15: Nathan hager.
Speaker 4: Well.
Speaker 2: Here we are again at a record high for the
Speaker 2: thirtieth time this year for the S and P five
Speaker 2: hundred and European stocks are joining in the rally this
Speaker 2: morning as well, Tech shares, driving past concerns once again
Speaker 2: about higher for longer interest rates and political uncertainty in Europe.
Speaker 2: Bloomberg Stocks reporter Joe Easton is with us this morning. Joe,
Speaker 2: good morning. This market just seems to keep defying the naysayers.
Speaker 2: I mean, are there many naysayers left at this point?
Speaker 16: Hey, Nathan, Well, there are a few. I mean, as
Speaker 16: you were saying, the stocks at a record yesterday, with
Speaker 16: the biggest gainers over in the tech space. Some of
Speaker 16: that due to, of course, predictions that the Fed will
Speaker 16: cut rates, though as you were mentioning, they're potentially less
Speaker 16: than some had hoped earlier this year. But the nice
Speaker 16: are the ones that say that potentially we are just
Speaker 16: seeing a bit of a bubble now on the bullish side,
Speaker 16: what you would look at is valuations, and in fact,
Speaker 16: valuations are a bit cheaper than they were at previous
Speaker 16: record high. So the S and P trading it just
Speaker 16: around twenty times earnings. Back in the big tech dot
Speaker 16: com bubble era, they were trading around thirty. So we
Speaker 16: can see that you can still get potentially some value
Speaker 16: in those stocks even though we are at records, and
Speaker 16: they are much more profitable companies than they were in
Speaker 16: previous cycles like that as well much better earnings outlook.
Speaker 16: So the bulls are definitely outweighing the bears and the
Speaker 16: naysayers on that front at the.
Speaker 2: Moment, certainly seems like they are. But it seems like
Speaker 2: we continue to ask the question as we've watched this
Speaker 2: rally throughout the year. What will it take to get
Speaker 2: a little more breadth in this rally? Is it going
Speaker 2: to continue to stay concentrated in these megacap stocks that've
Speaker 2: gotten so much of the attention this year.
Speaker 16: Yeah, Well, you're going to need to see some actual
Speaker 16: economic data act showing improvements in the economy. So we've
Speaker 16: seen a bit of an easy obviously an inflation and
Speaker 16: that's feeding into the narrative that the FED can start
Speaker 16: cutting rates, and not just the FED but around the
Speaker 16: world as well. But you need to see some better
Speaker 16: growth in terms of job creation, in terms of unemployment,
Speaker 16: and other key macroeconomic metrics. Until you get that, it's
Speaker 16: basically going to be driven by the Fed, by tech,
Speaker 16: maybe by continued hopes around AI, which was obviously the
Speaker 16: big theme of over the past year, alongside the rate cuts.
Speaker 16: Without the economic data alongside, it's just going to be
Speaker 16: tech fueling the rally at the moment, I think.
Speaker 2: And in terms of the rally that we're seeing this
Speaker 2: morning in the European session, have a European investors kind
Speaker 2: of gotten past some of the political uncertainty that we've
Speaker 2: been concerned about, or that a lot of investors have
Speaker 2: been concerned about. Following the snap election announcement from President Macron.
Speaker 16: Yeah, so that's snap legisative election announced by Micron. That
Speaker 16: was a bit of a sucker punch for European investors.
Speaker 16: Last week we saw the CAC forty really dry, having
Speaker 16: so much fear and uncertainty across the market. The CAC
Speaker 16: forty fell around five percent after initially falling more than
Speaker 16: that and recovering. But there are people in the market today,
Speaker 16: including Berkeley's, saying that potentially this is overdone and it
Speaker 16: gives you a good chance to buy into stocks that
Speaker 16: are quality to the likes of LVMH, even some of
Speaker 16: the Bank's credit, Agricole, sock Gen companies like this that
Speaker 16: have seen a sell off. It's a chance to buy
Speaker 16: in at a low level because the political outlook in
Speaker 16: France potentially won't change that much. It might be more difficult,
Speaker 16: slightly more difficult on the margins for Mcron and his
Speaker 16: government to get laws through parliament if there is a
Speaker 16: big change in the legislative legislative makeup, but the outlook
Speaker 16: pretty much remains the same in terms of the economy
Speaker 16: and the political outlook in France. Potentially it's a good
Speaker 16: chance to buy at the low.
Speaker 17: This is Bloomberg Daybreak Today, your morning brief and the
Speaker 17: story's making news from Wall Street to Washington and beyond.
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Speaker 17: You can also listen live each morning starting at five
Speaker 17: am Wall Street Time, on Bloomberg eleven three to zero
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Speaker 17: Listen coast to coast on the Bloomberg Business app, seririusxmb
Speaker 17: iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager.
Speaker 1: And I'm Karen Moscow. Join us again tomorrow morning for
Speaker 1: all the news you need to start your day right
Speaker 1: here on Bloomberg Daybreak