WEBVTT - Stocks at Record Highs; Tik Tok's Plan to Void Ban

0:00:02.480 --> 0:00:12.080
<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News. Good morning, I'm Nathan

0:00:12.119 --> 0:00:15.080
<v Speaker 1>Hager and I'm Karen Moscow. Here are the stories we're

0:00:15.120 --> 0:00:15.920
<v Speaker 1>following today.

0:00:16.239 --> 0:00:18.960
<v Speaker 2>Karen, we have said this twenty nine other times this

0:00:19.079 --> 0:00:22.480
<v Speaker 2>year on Bloomberg Daybreak. But once again stocks begin the

0:00:22.560 --> 0:00:26.040
<v Speaker 2>day at all time highs, and it was tech stocks

0:00:26.120 --> 0:00:28.479
<v Speaker 2>once again, driving the S and P five hundred to

0:00:28.560 --> 0:00:31.840
<v Speaker 2>its thirtieth record close of the year, helping the Nasdaq

0:00:31.880 --> 0:00:36.080
<v Speaker 2>one hundred come closer to the twenty thousand mark. Paul Christopher,

0:00:36.080 --> 0:00:39.680
<v Speaker 2>head of Global Investment Strategy at Wells Fargo Investment Institute,

0:00:39.720 --> 0:00:42.720
<v Speaker 2>says tech stocks may actually be the safe play.

0:00:43.000 --> 0:00:45.839
<v Speaker 3>And maybe there's a certain extent to which even some

0:00:45.880 --> 0:00:49.760
<v Speaker 3>of these high flying tech stocks have become defensives. If

0:00:49.800 --> 0:00:52.280
<v Speaker 3>you think about the upcoming elections, if you think about

0:00:52.360 --> 0:00:55.200
<v Speaker 3>the economy slowing down, Gee, should I buy staples or

0:00:55.200 --> 0:00:58.360
<v Speaker 3>should I buy discrectionary aud Heck with it, I'm just

0:00:58.360 --> 0:00:59.840
<v Speaker 3>going to buy something reliable and I'm going.

0:00:59.840 --> 0:01:00.360
<v Speaker 1>To go tech.

0:01:00.520 --> 0:01:02.920
<v Speaker 3>I think that's the mindset of some investors today.

0:01:02.960 --> 0:01:06.600
<v Speaker 2>Also, that's Paul Christopher of Wells Fargo Investment Institute Long

0:01:06.680 --> 0:01:10.479
<v Speaker 2>bets and the so called Magnificent seven technology behemoths now

0:01:10.560 --> 0:01:13.559
<v Speaker 2>stand at sixty nine percent. That is among the most

0:01:13.600 --> 0:01:16.880
<v Speaker 2>single crowded trades in history. According to an investor survey

0:01:16.920 --> 0:01:18.640
<v Speaker 2>by Bank of America.

0:01:18.400 --> 0:01:21.119
<v Speaker 1>Well Nathan has doog sit at record highe The debate

0:01:21.160 --> 0:01:25.120
<v Speaker 1>over interest rates is still in focus. Philadelphia Fed President

0:01:25.160 --> 0:01:28.720
<v Speaker 1>Patrick Harker says he sees one rate cut appropriate for

0:01:28.840 --> 0:01:29.319
<v Speaker 1>this year.

0:01:29.959 --> 0:01:32.880
<v Speaker 4>I have a forecast for inflation, employment and economic activity

0:01:33.360 --> 0:01:35.720
<v Speaker 4>slowing but above trend growth, a modest rise in the

0:01:35.760 --> 0:01:40.679
<v Speaker 4>unemployment rate, and a long glide back to target for inflation.

0:01:41.040 --> 0:01:45.960
<v Speaker 4>If all of that happens to be as forecasted, I

0:01:46.000 --> 0:01:50.320
<v Speaker 4>think one rate cut would be could be appropriate by

0:01:50.400 --> 0:01:50.840
<v Speaker 4>your end.

0:01:51.520 --> 0:01:55.200
<v Speaker 1>Philadelphia Fed President Patrick Harker also said he sees two

0:01:55.320 --> 0:01:58.400
<v Speaker 1>cuts or none as possibilities, depending on the data.

0:01:58.760 --> 0:02:01.760
<v Speaker 2>In Company News Group is putting one of its least

0:02:01.760 --> 0:02:04.840
<v Speaker 2>glamorous businesses front and center today. More on that from

0:02:04.880 --> 0:02:06.120
<v Speaker 2>Bloomberg's Doug Prisner.

0:02:06.360 --> 0:02:09.760
<v Speaker 5>It's the services business, and it helps cities international clients

0:02:09.880 --> 0:02:12.880
<v Speaker 5>manage and move cash globally. Today, the bank is aiming

0:02:12.919 --> 0:02:16.200
<v Speaker 5>to show how the segment can boost profitability. It's already

0:02:16.240 --> 0:02:19.680
<v Speaker 5>producing a growing share of cities profits, accounting for nearly

0:02:19.760 --> 0:02:23.400
<v Speaker 5>half the total last quarter. At the bank's Manhattan headquarters,

0:02:23.400 --> 0:02:27.360
<v Speaker 5>CEO Jane Fraser and CFO Mark Mason will pitch investors

0:02:27.360 --> 0:02:31.240
<v Speaker 5>on the services business. Now typically cities, trading operations and

0:02:31.280 --> 0:02:35.520
<v Speaker 5>credit card business attract more questions on earnings calls, although

0:02:35.520 --> 0:02:38.720
<v Speaker 5>in April Fraser, not for the first time, called it

0:02:39.000 --> 0:02:41.920
<v Speaker 5>the firm's crown jewel in New York. I'm Doug Prisoner

0:02:41.919 --> 0:02:42.680
<v Speaker 5>Bloomberg Radio.

0:02:42.960 --> 0:02:46.040
<v Speaker 1>All Right, Doug, thanks well. Boey CEO Dave Calhoun will

0:02:46.040 --> 0:02:49.360
<v Speaker 1>be on Capitol Hill today for a hearing focusing on

0:02:49.400 --> 0:02:53.320
<v Speaker 1>the planemakers safety culture. We get more from Bloomberg's Charlie Pellett.

0:02:53.480 --> 0:02:56.080
<v Speaker 6>The hearing will put the CEO on the spot to

0:02:56.160 --> 0:03:00.480
<v Speaker 6>defend his record and salvage his legacy as he prepares

0:03:00.520 --> 0:03:04.280
<v Speaker 6>to step down later this year. Investors who have endured

0:03:04.320 --> 0:03:07.519
<v Speaker 6>a thirty two percent stock slump this year and watched

0:03:07.600 --> 0:03:11.480
<v Speaker 6>Boeing's credit rating come dangerously close to junk status, have

0:03:11.600 --> 0:03:17.160
<v Speaker 6>already shifted their focus to Calhoun's yet undisclosed successor. Sources

0:03:17.160 --> 0:03:20.240
<v Speaker 6>say the new chairman, Steve Mollenkopf, who took over as

0:03:20.280 --> 0:03:22.920
<v Speaker 6>part of a senior management shake up in March, is

0:03:23.040 --> 0:03:25.919
<v Speaker 6>leading the search for the next CEO, and the hunt

0:03:26.040 --> 0:03:29.440
<v Speaker 6>has picked up speed in recent weeks. In New York,

0:03:29.639 --> 0:03:31.320
<v Speaker 6>Charlie pet Bloomberg Radio.

0:03:31.360 --> 0:03:34.239
<v Speaker 2>Thanks Charlie and other big companies in the government's crosshairs.

0:03:34.280 --> 0:03:38.040
<v Speaker 2>The Federal Trade Commission is suing Adobe, accusing the software

0:03:38.040 --> 0:03:41.600
<v Speaker 2>company of violating consumer protection laws by making it too

0:03:41.640 --> 0:03:46.280
<v Speaker 2>difficult for consumers to cancel subscriptions. An Adobe spokesperson did

0:03:46.320 --> 0:03:49.280
<v Speaker 2>not respond to a request for comment. Users of Adobe

0:03:49.280 --> 0:03:52.520
<v Speaker 2>products have long complained about the expense of canceling subscriptions.

0:03:52.560 --> 0:03:55.680
<v Speaker 2>Accessing Adobe Suite of apps can cost more than seven

0:03:55.800 --> 0:03:58.240
<v Speaker 2>hundred dollars a year for individuals well.

0:03:58.320 --> 0:04:01.240
<v Speaker 1>Turning to politics, now, Nathan in Biden is about to

0:04:01.240 --> 0:04:05.280
<v Speaker 1>take sweeping action to protect undocumented migrants while trying to

0:04:05.360 --> 0:04:08.800
<v Speaker 1>soften criticism about his actions at the border. We get

0:04:08.800 --> 0:04:11.400
<v Speaker 1>the story from Bloomberg Steve Potisk in Washington.

0:04:11.600 --> 0:04:15.080
<v Speaker 7>The President will announce a streamlined path to legal status

0:04:15.080 --> 0:04:18.160
<v Speaker 7>for more than a half million immigrants. Under the new policy,

0:04:18.279 --> 0:04:21.400
<v Speaker 7>spouses and children of US citizens who've been in the

0:04:21.440 --> 0:04:24.000
<v Speaker 7>country at least a decade will be able to apply

0:04:24.160 --> 0:04:27.640
<v Speaker 7>for permanent residency without having to leave the country first.

0:04:28.000 --> 0:04:30.320
<v Speaker 7>The move could be a counterweight to an order the

0:04:30.360 --> 0:04:34.200
<v Speaker 7>President signed earlier this month aimed at curbing asylum claims.

0:04:34.480 --> 0:04:37.560
<v Speaker 7>The president plans to roll out the policy today at

0:04:37.560 --> 0:04:41.720
<v Speaker 7>an anniversary event for Deferred Action for Childhood Arrivals, the

0:04:41.800 --> 0:04:45.919
<v Speaker 7>Obama era program that protects undocumented migrants who came to

0:04:45.960 --> 0:04:50.520
<v Speaker 7>the US as children. In Washington, Steve Potisk Bloomberg.

0:04:50.120 --> 0:04:52.120
<v Speaker 2>Radio, Thank you, Stephen. We're getting a look at what

0:04:52.160 --> 0:04:55.000
<v Speaker 2>foreign policy might look like if Donald Trump returns to

0:04:55.000 --> 0:04:58.480
<v Speaker 2>the White House. From the former president's last national security advisor,

0:04:58.800 --> 0:05:01.880
<v Speaker 2>Robert O'Brien, says the US should cut economic ties with

0:05:02.000 --> 0:05:06.320
<v Speaker 2>China completely, consider moving the entire US Marine Corps to Asia,

0:05:06.680 --> 0:05:10.520
<v Speaker 2>and resume live nuclear weapons tests. O'Brien lays out those

0:05:10.560 --> 0:05:14.280
<v Speaker 2>proposals in an article set to appear in Foreign Policy Magazine. Now,

0:05:14.279 --> 0:05:16.919
<v Speaker 2>there's no guarantee Trump would follow those ideas in a

0:05:16.960 --> 0:05:19.960
<v Speaker 2>second term, but O'Brien says he has remained in regular

0:05:20.000 --> 0:05:23.360
<v Speaker 2>contact with the former president. A State Department appointee who

0:05:23.440 --> 0:05:25.680
<v Speaker 2>helped him prepare the article says he gave a copy

0:05:25.720 --> 0:05:26.800
<v Speaker 2>too the Trump campaign.

0:05:27.240 --> 0:05:27.400
<v Speaker 8>Well.

0:05:27.480 --> 0:05:31.000
<v Speaker 1>Nathan TikTok's Chinese owner by Dance, has until this Thursday

0:05:31.040 --> 0:05:34.160
<v Speaker 1>to explain the reason behind its lawsuit against the US.

0:05:34.520 --> 0:05:37.480
<v Speaker 1>It's a high stakes bid to overturn a new law

0:05:37.520 --> 0:05:40.520
<v Speaker 1>that would ban TikTok in the US unless by Dance

0:05:40.760 --> 0:05:43.159
<v Speaker 1>sells it. But that lawsuit is going to test the

0:05:43.200 --> 0:05:47.599
<v Speaker 1>secrecy of lawmakers briefings, and Bloomberg's Amy Morris explains.

0:05:47.320 --> 0:05:50.599
<v Speaker 9>Congress members held a series of secret briefings before deciding

0:05:50.640 --> 0:05:52.480
<v Speaker 9>to pass the law that could lead to a ban

0:05:52.560 --> 0:05:55.480
<v Speaker 9>of TikTok in the US. By Dance suit in One

0:05:55.520 --> 0:05:58.240
<v Speaker 9>of its main arguments is that Congress doesn't have any

0:05:58.360 --> 0:06:01.600
<v Speaker 9>public proof of a nationals seecurity threat. Well, the challenge

0:06:01.640 --> 0:06:04.200
<v Speaker 9>could make it to the Supreme Court, but it also

0:06:04.240 --> 0:06:07.640
<v Speaker 9>poses a test of whether US federal agencies will divulge

0:06:07.680 --> 0:06:10.960
<v Speaker 9>the national security secrets that they shared with lawmakers so

0:06:11.000 --> 0:06:14.520
<v Speaker 9>they can defend the new law. Senator Richard Blumenthal argues

0:06:14.600 --> 0:06:17.320
<v Speaker 9>that that wouldn't be necessary anyway, because the burden of

0:06:17.360 --> 0:06:21.400
<v Speaker 9>proof falls to TikTok in Washington. Amy Morris Bloomberg Radio.

0:06:21.360 --> 0:06:24.080
<v Speaker 2>Okay, Amy, thank you. Will be monitoring Russian President Vladimir

0:06:24.120 --> 0:06:26.720
<v Speaker 2>Putin as he visits North Korea today for the first

0:06:26.800 --> 0:06:30.080
<v Speaker 2>time in twenty four years. North Korea is suspected of

0:06:30.120 --> 0:06:32.960
<v Speaker 2>sending missiles and millions of rounds of munitions to help

0:06:33.000 --> 0:06:36.720
<v Speaker 2>Moscow continue its offensive in Ukraine. Melinda Herring, senior fellow

0:06:36.760 --> 0:06:39.280
<v Speaker 2>at the Atlantic Council's Eurasia Center, says, while the trip

0:06:39.360 --> 0:06:42.839
<v Speaker 2>is concerning, it is also a reminder of Putin's isolation

0:06:43.040 --> 0:06:44.080
<v Speaker 2>on the world stage.

0:06:44.400 --> 0:06:46.480
<v Speaker 9>One thing that I would keep by eye on is

0:06:46.640 --> 0:06:48.800
<v Speaker 9>are they going to be cutting more deals to make

0:06:48.839 --> 0:06:51.480
<v Speaker 9>sure that the Russians have enough shells too. I think

0:06:51.480 --> 0:06:55.160
<v Speaker 9>it shows how isolated Vladimir Putin is. He doesn't have

0:06:55.320 --> 0:06:56.159
<v Speaker 9>very many friends.

0:06:56.400 --> 0:06:57.480
<v Speaker 2>He's got North.

0:06:57.279 --> 0:07:00.000
<v Speaker 1>Korea, and he's got China and a few other people.

0:07:01.160 --> 0:07:03.839
<v Speaker 2>The Atlantic Council's Melinda Herring says, the fresh delivery of

0:07:03.839 --> 0:07:06.599
<v Speaker 2>billions of dollars in arms to Ukraine from the US

0:07:06.680 --> 0:07:09.400
<v Speaker 2>and European allies will need to be bolstered by further

0:07:09.480 --> 0:07:10.760
<v Speaker 2>support next year.

0:07:14.840 --> 0:07:16.040
<v Speaker 1>Time now for a look at some of the other

0:07:16.200 --> 0:07:18.720
<v Speaker 1>stories making news in New York and around the world.

0:07:18.800 --> 0:07:20.760
<v Speaker 1>For that, we're joined by Bloomberg's Michael Barr.

0:07:20.880 --> 0:07:22.679
<v Speaker 7>Michael, Good morning, Good morning, Karen.

0:07:22.760 --> 0:07:25.800
<v Speaker 10>Extreme heat alerts remain in effect for tens of millions

0:07:25.840 --> 0:07:29.280
<v Speaker 10>of people in the US as cities, including Chicago break

0:07:29.360 --> 0:07:32.720
<v Speaker 10>heat records. States in the Midwest started to bake Monday

0:07:32.760 --> 0:07:35.600
<v Speaker 10>in the dangerous heat wave that was expected to stretch

0:07:35.920 --> 0:07:39.560
<v Speaker 10>from Iowa to Maine into at least Friday. The mid

0:07:39.600 --> 0:07:42.440
<v Speaker 10>Atlantic and New England are likely to see highs in

0:07:42.480 --> 0:07:46.320
<v Speaker 10>the nineties as the week progresses. Excessive humidity will make

0:07:46.360 --> 0:07:50.200
<v Speaker 10>it feel even more oppressive. Officials are warning people to

0:07:50.240 --> 0:07:54.600
<v Speaker 10>take precautions, such as drinking plenty of water and staying indoors.

0:07:54.880 --> 0:07:57.960
<v Speaker 10>New York City Mayor Eric Adams says this is extremely

0:07:58.040 --> 0:07:59.480
<v Speaker 10>hot for June.

0:07:59.400 --> 0:08:03.280
<v Speaker 11>With climate chain leading to more frequent and intense heat.

0:08:04.160 --> 0:08:07.360
<v Speaker 11>Summers are different than they were before, and so we

0:08:07.400 --> 0:08:11.160
<v Speaker 11>should expect and be prepared for the hot weather that

0:08:11.280 --> 0:08:11.760
<v Speaker 11>is coming.

0:08:12.120 --> 0:08:15.000
<v Speaker 10>Mayor Adams is also urging New Yorkers to check on

0:08:15.240 --> 0:08:19.760
<v Speaker 10>elderly neighbors and pets. Houston officials say they are ready

0:08:19.800 --> 0:08:23.000
<v Speaker 10>for the first major taste of tropical weather this summer.

0:08:23.320 --> 0:08:27.520
<v Speaker 10>A tropical cyclone is forecasted to hit Mexico and portions

0:08:27.560 --> 0:08:31.120
<v Speaker 10>of Texas later today. It's about fifty miles southeast of Houston.

0:08:31.720 --> 0:08:35.160
<v Speaker 10>Firefighters in the mountains north of Los Angeles are battling

0:08:35.240 --> 0:08:41.040
<v Speaker 10>a sixteen thousand acre wildfire that has caused evacuations in Gorman, California.

0:08:41.080 --> 0:08:45.360
<v Speaker 10>Firefighters who made some progress on Saturday and Sunday flames

0:08:45.360 --> 0:08:48.000
<v Speaker 10>that were raging in the strong winds. However, people with

0:08:48.120 --> 0:08:53.480
<v Speaker 10>respiratory problems have been worned to limit time outside. James Gore,

0:08:53.640 --> 0:08:57.320
<v Speaker 10>a Sonoma County supervisor, remembers back to the twenty seventeen

0:08:57.360 --> 0:09:01.280
<v Speaker 10>brush fire that caused very dangerous conditions.

0:09:01.120 --> 0:09:04.040
<v Speaker 12>Tubs fire, the Snowma Complex fires. Everybody got caught on

0:09:04.080 --> 0:09:07.079
<v Speaker 12>their heels, We got smoked. There was this mantra here

0:09:07.120 --> 0:09:10.280
<v Speaker 12>that was never again, not never a fire again, but

0:09:10.360 --> 0:09:11.720
<v Speaker 12>never get caught on your heels again.

0:09:12.200 --> 0:09:15.000
<v Speaker 10>So far, the point Fanier is about twenty percent contained.

0:09:15.679 --> 0:09:19.400
<v Speaker 10>Senate Democrats are set to advance legislation de band bump stocks.

0:09:19.440 --> 0:09:22.040
<v Speaker 10>The vote could come as soon as today. It follows

0:09:22.080 --> 0:09:24.920
<v Speaker 10>the Supreme Court ruling last week striking down a Trump

0:09:25.000 --> 0:09:27.920
<v Speaker 10>Arab band. Senate majority leader Chuck Schumer of.

0:09:27.840 --> 0:09:32.800
<v Speaker 13>New York Friday's ruling is yet another warnings that this

0:09:33.120 --> 0:09:37.240
<v Speaker 13>MAGA Court is going off the deep end, aligning itself

0:09:37.280 --> 0:09:39.720
<v Speaker 13>more and more with the most extreme elements of the

0:09:39.760 --> 0:09:40.199
<v Speaker 13>hard right.

0:09:40.640 --> 0:09:43.960
<v Speaker 10>Schumer says the Supreme Court has struck down freedom of choice,

0:09:44.080 --> 0:09:50.600
<v Speaker 10>environmental protections, affirmative action, districting, gun safety and more. Global

0:09:50.640 --> 0:09:52.600
<v Speaker 10>news twenty four hours a day and whenever you want

0:09:52.600 --> 0:09:55.240
<v Speaker 10>it with Bloomberg News Now. I'm Michael Barr. This is

0:09:55.280 --> 0:09:56.360
<v Speaker 10>Bloomberg Karen.

0:09:56.440 --> 0:10:04.120
<v Speaker 1>Orright, Michael, Thank you time now for the Bloomberg Sports Update,

0:10:04.160 --> 0:10:06.360
<v Speaker 1>which an stash hour John Good Morning.

0:10:06.160 --> 0:10:08.679
<v Speaker 14>Morning Care. In the Boston Celtics had at dynasty of

0:10:08.720 --> 0:10:11.719
<v Speaker 14>the nineteen sixties, won two titles in the seventies, three

0:10:11.800 --> 0:10:14.000
<v Speaker 14>more in the eighties, had only won the NBA championship

0:10:14.040 --> 0:10:18.080
<v Speaker 14>once since nineteen eighty six. That was one exactly sixteen

0:10:18.160 --> 0:10:20.240
<v Speaker 14>years ago. And now the Celtics are once again the

0:10:20.320 --> 0:10:22.040
<v Speaker 14>top the basketball world.

0:10:22.559 --> 0:10:27.000
<v Speaker 8>Confetti guns shooting green and white confetti and making the

0:10:27.000 --> 0:10:31.120
<v Speaker 8>most beautiful blizzard you have ever seen, rained down on

0:10:31.200 --> 0:10:36.120
<v Speaker 8>a crowded court at TD Guardy. The final score Boston

0:10:36.160 --> 0:10:40.840
<v Speaker 8>one oh six Dallas eighty eight. The Boston Celtics are

0:10:40.920 --> 0:10:43.960
<v Speaker 8>world champions for the eighteenth Tome WVZ.

0:10:44.160 --> 0:10:46.640
<v Speaker 14>Game five was a round. Celtics never trailed up by

0:10:46.679 --> 0:10:49.240
<v Speaker 14>twenty at half times. Jason Tatum scored thirty one points.

0:10:49.240 --> 0:10:51.640
<v Speaker 14>He had eleven assists. Jalen Brown at at twenty one.

0:10:51.679 --> 0:10:54.120
<v Speaker 14>He was Finals MVP. Look at Donsons led Dallas with

0:10:54.160 --> 0:10:57.439
<v Speaker 14>twenty eight. Celtics won four series, never lost more than

0:10:57.480 --> 0:11:00.000
<v Speaker 14>one game in any of them. So the NBA season

0:11:00.160 --> 0:11:03.440
<v Speaker 14>is over. Hockey might end tonight. Edmonton plays Game five

0:11:03.520 --> 0:11:06.000
<v Speaker 14>at Florida. The Panthers lead three to one the Stanley Cup.

0:11:06.240 --> 0:11:08.520
<v Speaker 14>We'll be in the house. What's gotten into the Mets.

0:11:08.559 --> 0:11:11.080
<v Speaker 14>They had a stretch where they went ten to twenty five,

0:11:11.480 --> 0:11:13.400
<v Speaker 14>but then arrow ride in a six game winstry. They've

0:11:13.440 --> 0:11:15.600
<v Speaker 14>taken ten in the last twelve and it was fourteen

0:11:15.640 --> 0:11:19.280
<v Speaker 14>to two in Texas. Mets had twenty two hits. Francisco

0:11:19.320 --> 0:11:22.760
<v Speaker 14>Lindor had four, four other Mets had three. Brandon Immo

0:11:22.880 --> 0:11:25.920
<v Speaker 14>drove in four. Red Sox won seven to three in Toronto.

0:11:26.040 --> 0:11:28.640
<v Speaker 14>Yankees begining a big series the Stadium tonight. Baltimore comes

0:11:28.640 --> 0:11:30.680
<v Speaker 14>in only game and a half behind, and the Yanks

0:11:30.679 --> 0:11:33.360
<v Speaker 14>will be without Anthony Rizzo broke his hands Sunday. He's

0:11:33.400 --> 0:11:35.560
<v Speaker 14>going to be out four to six weeks. Garrett Cole's

0:11:35.600 --> 0:11:38.000
<v Speaker 14>been out all season. He's going to make his debut tomorrow,

0:11:38.040 --> 0:11:41.120
<v Speaker 14>back from the elbow injury. When we last saw Rory McElroy,

0:11:41.120 --> 0:11:43.160
<v Speaker 14>he was missing two short putts that cost him a

0:11:43.240 --> 0:11:45.240
<v Speaker 14>chance to win the US Open. He bolted out of

0:11:45.320 --> 0:11:48.720
<v Speaker 14>Pinehurst without speaking to the media. McElroy released a statement

0:11:49.040 --> 0:11:51.520
<v Speaker 14>that called Sunday the toughest day of his career. He's

0:11:51.559 --> 0:11:55.000
<v Speaker 14>withdrawn from this week's tournament near Hartford, says he'll return

0:11:55.040 --> 0:11:58.280
<v Speaker 14>for the Scottish and British opens next month. John Stashanward,

0:11:58.280 --> 0:12:00.040
<v Speaker 14>Bloomberg Sports Kndon Nathan.

0:12:02.120 --> 0:12:06.160
<v Speaker 15>Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,

0:12:06.360 --> 0:12:09.240
<v Speaker 15>and around the world on Bloomberg dot Com and the

0:12:09.280 --> 0:12:13.800
<v Speaker 15>Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm

0:12:13.840 --> 0:12:14.520
<v Speaker 15>Nathan hager.

0:12:14.559 --> 0:12:14.719
<v Speaker 4>Well.

0:12:14.760 --> 0:12:17.080
<v Speaker 2>Here we are again at a record high for the

0:12:17.160 --> 0:12:20.080
<v Speaker 2>thirtieth time this year for the S and P five

0:12:20.160 --> 0:12:22.680
<v Speaker 2>hundred and European stocks are joining in the rally this

0:12:22.760 --> 0:12:27.120
<v Speaker 2>morning as well, Tech shares, driving past concerns once again

0:12:27.240 --> 0:12:30.800
<v Speaker 2>about higher for longer interest rates and political uncertainty in Europe.

0:12:30.920 --> 0:12:35.000
<v Speaker 2>Bloomberg Stocks reporter Joe Easton is with us this morning. Joe,

0:12:35.240 --> 0:12:39.720
<v Speaker 2>good morning. This market just seems to keep defying the naysayers.

0:12:39.800 --> 0:12:42.960
<v Speaker 2>I mean, are there many naysayers left at this point?

0:12:43.640 --> 0:12:45.839
<v Speaker 16>Hey, Nathan, Well, there are a few. I mean, as

0:12:45.840 --> 0:12:48.760
<v Speaker 16>you were saying, the stocks at a record yesterday, with

0:12:49.040 --> 0:12:51.760
<v Speaker 16>the biggest gainers over in the tech space. Some of

0:12:51.800 --> 0:12:54.240
<v Speaker 16>that due to, of course, predictions that the Fed will

0:12:54.280 --> 0:12:57.200
<v Speaker 16>cut rates, though as you were mentioning, they're potentially less

0:12:57.240 --> 0:12:59.959
<v Speaker 16>than some had hoped earlier this year. But the nice

0:13:00.360 --> 0:13:02.600
<v Speaker 16>are the ones that say that potentially we are just

0:13:02.640 --> 0:13:05.839
<v Speaker 16>seeing a bit of a bubble now on the bullish side,

0:13:05.920 --> 0:13:08.360
<v Speaker 16>what you would look at is valuations, and in fact,

0:13:08.679 --> 0:13:11.920
<v Speaker 16>valuations are a bit cheaper than they were at previous

0:13:12.000 --> 0:13:14.080
<v Speaker 16>record high. So the S and P trading it just

0:13:14.160 --> 0:13:18.840
<v Speaker 16>around twenty times earnings. Back in the big tech dot

0:13:18.880 --> 0:13:22.000
<v Speaker 16>com bubble era, they were trading around thirty. So we

0:13:22.040 --> 0:13:25.480
<v Speaker 16>can see that you can still get potentially some value

0:13:25.520 --> 0:13:27.679
<v Speaker 16>in those stocks even though we are at records, and

0:13:27.960 --> 0:13:30.640
<v Speaker 16>they are much more profitable companies than they were in

0:13:30.720 --> 0:13:33.600
<v Speaker 16>previous cycles like that as well much better earnings outlook.

0:13:33.720 --> 0:13:37.000
<v Speaker 16>So the bulls are definitely outweighing the bears and the

0:13:37.040 --> 0:13:38.600
<v Speaker 16>naysayers on that front at the.

0:13:38.520 --> 0:13:41.520
<v Speaker 2>Moment, certainly seems like they are. But it seems like

0:13:41.559 --> 0:13:44.040
<v Speaker 2>we continue to ask the question as we've watched this

0:13:44.200 --> 0:13:46.760
<v Speaker 2>rally throughout the year. What will it take to get

0:13:46.800 --> 0:13:49.880
<v Speaker 2>a little more breadth in this rally? Is it going

0:13:49.920 --> 0:13:54.120
<v Speaker 2>to continue to stay concentrated in these megacap stocks that've

0:13:54.120 --> 0:13:55.720
<v Speaker 2>gotten so much of the attention this year.

0:13:56.679 --> 0:13:58.800
<v Speaker 16>Yeah, Well, you're going to need to see some actual

0:13:58.920 --> 0:14:01.800
<v Speaker 16>economic data act showing improvements in the economy. So we've

0:14:01.840 --> 0:14:04.440
<v Speaker 16>seen a bit of an easy obviously an inflation and

0:14:04.480 --> 0:14:07.120
<v Speaker 16>that's feeding into the narrative that the FED can start

0:14:07.120 --> 0:14:09.040
<v Speaker 16>cutting rates, and not just the FED but around the

0:14:09.040 --> 0:14:10.839
<v Speaker 16>world as well. But you need to see some better

0:14:10.880 --> 0:14:14.559
<v Speaker 16>growth in terms of job creation, in terms of unemployment,

0:14:14.840 --> 0:14:18.839
<v Speaker 16>and other key macroeconomic metrics. Until you get that, it's

0:14:18.880 --> 0:14:21.480
<v Speaker 16>basically going to be driven by the Fed, by tech,

0:14:21.560 --> 0:14:24.880
<v Speaker 16>maybe by continued hopes around AI, which was obviously the

0:14:24.880 --> 0:14:28.280
<v Speaker 16>big theme of over the past year, alongside the rate cuts.

0:14:28.320 --> 0:14:31.960
<v Speaker 16>Without the economic data alongside, it's just going to be

0:14:32.000 --> 0:14:34.160
<v Speaker 16>tech fueling the rally at the moment, I think.

0:14:34.080 --> 0:14:35.920
<v Speaker 2>And in terms of the rally that we're seeing this

0:14:36.000 --> 0:14:40.200
<v Speaker 2>morning in the European session, have a European investors kind

0:14:40.200 --> 0:14:43.520
<v Speaker 2>of gotten past some of the political uncertainty that we've

0:14:43.560 --> 0:14:45.960
<v Speaker 2>been concerned about, or that a lot of investors have

0:14:46.000 --> 0:14:50.680
<v Speaker 2>been concerned about. Following the snap election announcement from President Macron.

0:14:51.600 --> 0:14:55.400
<v Speaker 16>Yeah, so that's snap legisative election announced by Micron. That

0:14:55.480 --> 0:14:57.800
<v Speaker 16>was a bit of a sucker punch for European investors.

0:14:57.880 --> 0:15:00.280
<v Speaker 16>Last week we saw the CAC forty really dry, having

0:15:00.400 --> 0:15:03.720
<v Speaker 16>so much fear and uncertainty across the market. The CAC

0:15:03.800 --> 0:15:07.520
<v Speaker 16>forty fell around five percent after initially falling more than

0:15:07.520 --> 0:15:11.000
<v Speaker 16>that and recovering. But there are people in the market today,

0:15:11.000 --> 0:15:14.240
<v Speaker 16>including Berkeley's, saying that potentially this is overdone and it

0:15:14.240 --> 0:15:16.720
<v Speaker 16>gives you a good chance to buy into stocks that

0:15:16.920 --> 0:15:19.680
<v Speaker 16>are quality to the likes of LVMH, even some of

0:15:19.720 --> 0:15:23.080
<v Speaker 16>the Bank's credit, Agricole, sock Gen companies like this that

0:15:23.160 --> 0:15:25.360
<v Speaker 16>have seen a sell off. It's a chance to buy

0:15:25.360 --> 0:15:28.240
<v Speaker 16>in at a low level because the political outlook in

0:15:28.280 --> 0:15:31.800
<v Speaker 16>France potentially won't change that much. It might be more difficult,

0:15:31.800 --> 0:15:34.600
<v Speaker 16>slightly more difficult on the margins for Mcron and his

0:15:34.680 --> 0:15:37.600
<v Speaker 16>government to get laws through parliament if there is a

0:15:37.600 --> 0:15:42.360
<v Speaker 16>big change in the legislative legislative makeup, but the outlook

0:15:42.400 --> 0:15:45.240
<v Speaker 16>pretty much remains the same in terms of the economy

0:15:45.240 --> 0:15:48.000
<v Speaker 16>and the political outlook in France. Potentially it's a good

0:15:48.120 --> 0:15:49.440
<v Speaker 16>chance to buy at the low.

0:15:49.720 --> 0:15:52.800
<v Speaker 17>This is Bloomberg Daybreak Today, your morning brief and the

0:15:52.840 --> 0:15:56.200
<v Speaker 17>story's making news from Wall Street to Washington and beyond.

0:15:56.520 --> 0:15:59.280
<v Speaker 1>Look for us on your podcast feed at six am

0:15:59.360 --> 0:16:03.040
<v Speaker 1>Eastern each morning, on Apple, Spotify, and anywhere else you

0:16:03.080 --> 0:16:04.160
<v Speaker 1>get your podcasts.

0:16:04.400 --> 0:16:07.080
<v Speaker 17>You can also listen live each morning starting at five

0:16:07.120 --> 0:16:09.720
<v Speaker 17>am Wall Street Time, on Bloomberg eleven three to zero

0:16:09.760 --> 0:16:13.240
<v Speaker 17>in New York, Bloomberg ninety nine one in Washington, Bloomberg

0:16:13.280 --> 0:16:16.280
<v Speaker 17>one oh sixty one in Boston, and Bloomberg ninety sixty

0:16:16.400 --> 0:16:17.360
<v Speaker 17>in San Francisco.

0:16:17.720 --> 0:16:20.880
<v Speaker 1>Our flagship New York station is also available on your

0:16:20.920 --> 0:16:26.400
<v Speaker 1>Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus.

0:16:26.400 --> 0:16:29.960
<v Speaker 17>Listen coast to coast on the Bloomberg Business app, seririusxmb

0:16:30.160 --> 0:16:34.200
<v Speaker 17>iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager.

0:16:34.000 --> 0:16:37.120
<v Speaker 1>And I'm Karen Moscow. Join us again tomorrow morning for

0:16:37.240 --> 0:16:39.760
<v Speaker 1>all the news you need to start your day right

0:16:39.800 --> 0:16:41.440
<v Speaker 1>here on Bloomberg Daybreak