Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: Good morning.
Speaker 1: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 1: stories we're following today, Karen.
Speaker 2: Investors are still reacting to the messaging from j Powell.
Speaker 2: The Fed chair is keeping helps alive for an interest
Speaker 2: rate cut this year, while acknowledging a burst of inflation
Speaker 2: has reduced policymakers confidence the price pressures are easing, though
Speaker 2: Powell did signal that a rate hike is not in
Speaker 2: the cards.
Speaker 3: I do think it's clear that policy is restrictive, and
Speaker 3: we believe over time it will be sufficiently restrictive. That
Speaker 3: will be a question that the data will have to answer.
Speaker 3: I think it's unlikely that the next policy rate move
Speaker 3: will be a hike.
Speaker 2: Jay Powell's message was clear to former New York Fed
Speaker 2: President and current Bloomberg opinion columnist Bill Dudley.
Speaker 4: The whole game plan is basically unchanged. We're going to
Speaker 4: keep rates here until we're highly confident that we're going
Speaker 4: to hit inflation down at two percent. No hint whatsoever
Speaker 4: of a great hike, no hint that it's not going
Speaker 4: to work. So mark reaction, I think was pretty appropriate
Speaker 4: given what he said, He basically said, we've got it.
Speaker 2: Former New York Fed President William Dudley says Jay Powell's
Speaker 2: comments reinforced the higher for longer narrative over the medium term.
Speaker 1: Well, Nathan, The attention now turns to earnings, with Apple
Speaker 1: reporting after the closing bill. Let me get our preview
Speaker 1: from Bloomberg's Tom Busby.
Speaker 5: Analysts expect another decline in revenue for the fifth time
Speaker 5: in as many quarters, mostly on a sharp slowdown in
Speaker 5: China because of its luggish economy, a ban on using
Speaker 5: the iPhone at official government jobs, and a lot more
Speaker 5: competition in the smartphone market from Chinese rivals. Today's results
Speaker 5: will also be the first official look at sales of
Speaker 5: its thirty five hundred dollars Vision Pro mixed reality headset,
Speaker 5: not expected to be a major source of revenue anytime soon.
Speaker 5: Consensus calls for revenue of ninety point three three billion dollars,
Speaker 5: iPhone sales still making up about half that total earnings
Speaker 5: of a dollar fifty share. Tom Buzzby, Bloomberg Radio. All right, Tom,
Speaker 5: thank you now.
Speaker 2: We want to get you up to date on the
Speaker 2: protests still playing out on college campuses across the country.
Speaker 2: Police moved in on this Tenton Cambin at Fordham University
Speaker 2: yesterday and arrested fifteen people for trespassing. In California, UCLA
Speaker 2: suspended Wednesday classes after police and riot gear moved in
Speaker 2: on a pro Palestinian camp that put up pepper spray
Speaker 2: on counter demonstrators who tried to break them up. This
Speaker 2: professor brought Vencott says it's like nothing he's ever seen.
Speaker 6: I've been in many protests over the course of my life.
Speaker 6: I've never seen anything like this. I've never seen students
Speaker 6: being physically attacked by a huge crowd.
Speaker 2: And all this follows hundreds of arrest Tuesday night at
Speaker 2: Columbia University and City College of New York. The Associated
Speaker 2: Press has counted more than sixteen hundred arrests at thirty
Speaker 2: schools since the protests began at Columbia two weeks ago.
Speaker 1: Oh well, Nathan, we turned down to legal news. Out
Speaker 1: of Arizona, the state Senate has voted to repeal a
Speaker 1: Civil War era law that would make nearly all abortions
Speaker 1: a crime. We get more from Bloomberg's Ed Baxter.
Speaker 7: After the Senate passage, it just needs the governor's signature.
Speaker 7: And Katie Hobbs has supported it all along and posted
Speaker 7: right after the vote, we are going to get rid
Speaker 7: of this awful law once and for all. Democratic State
Speaker 7: Senator Evil Birch says it is time.
Speaker 8: I don't want us honoring laws about women written during
Speaker 8: a time when women were forbidden from voting because their
Speaker 8: voices were considered inferior to men.
Speaker 7: When the process is done, Arizona will revert to the
Speaker 7: prior law which allows abortion up to fifteen weeks of pregnancy.
Speaker 7: At Baxter Bloomberg Radio, all right.
Speaker 9: Ed, thank you.
Speaker 2: Turning back to markets, it has been quite a voliable
Speaker 2: day in currencies. The yen in Japan slid as much
Speaker 2: as one point one percent against the dollar, after having
Speaker 2: surged up to three percent late yesterday. Bloomberg News Executive
Speaker 2: editor for Asian Markets Paul says there are signs the
Speaker 2: Japanese government made a move.
Speaker 10: The evidence suggests that it's a second intervention by the
Speaker 10: authorities this week, a second attempt to stop the yen
Speaker 10: from continuing with this weakening puff. The problem that they
Speaker 10: face is almost immediately once that was over, the weakening
Speaker 10: began again. The trend is very much for a weekly yen,
Speaker 10: and so the impact or the influence that the authorities
Speaker 10: can have is is going to be tested. At the
Speaker 10: very least.
Speaker 2: Bloomberg's Paul Dobson notes we'll only know for sure when
Speaker 2: the government confirms any FX action, but an analysis of
Speaker 2: Bank of Japan pounds by Bloomberg News does point to
Speaker 2: an intervention of about three and a half trillion yen.
Speaker 1: Well in Europe, Nathan shares of Shell are at more
Speaker 1: than one percent, And for a recap of the oil
Speaker 1: giant's latest profit report and a look at some other
Speaker 1: key earnings, we bring in Bloomberg's Ew and Pots in London.
Speaker 11: You good morning, Karen. Nathan. Shell is keeping up the
Speaker 11: pace of share buybacks three and a half billion dollars
Speaker 11: worth in the second quarter. This is the oil John
Speaker 11: saw profits drop lesson expected in the previous quarter. And
Speaker 11: there's another buyback in the banking sector. Shares in IG,
Speaker 11: the biggest lender in the Netherlands, jumping after profit beat
Speaker 11: and on a new two and a half billion euro
Speaker 11: buyback and earning some of Europe's most valuable company. Today's
Speaker 11: drugmaker Novo Nordisk It says sales of its weight loss
Speaker 11: treatment will go V more than doubled in the first quarter,
Speaker 11: but it's facing both supply constraints and pricing pressure. In London,
Speaker 11: I'm une Potsplin, bog.
Speaker 12: Radio, Okay you and thank you.
Speaker 2: Checking some stocks on the move. Here in the US,
Speaker 2: we're watching shares of Qualcom. They are up more than
Speaker 2: four and a half percent. Of the world's biggest seller
Speaker 2: of smartphone process Who's, gave an up beat forecast for
Speaker 2: sales and profit in the current period. Analysts say that
Speaker 2: suggests demand for handsets is increasing after a two year slump.
Speaker 1: On the flip side, shares of fastly plunging more than
Speaker 1: thirty two percent. The infrastructure software company lowered its full
Speaker 1: year projections for revenue and profit, and.
Speaker 2: To coin a phrase Karen DoorDash is not delivering for
Speaker 2: investors this morning, that stock is down three thirteen percent.
Speaker 2: The largest food delivery service in the country offered a
Speaker 2: disappointing profit forecast for this quarter.
Speaker 1: Shares a Carvana Nathan surging up thirty five percent. The
Speaker 1: used car retailer, once on the brink of bankruptcy, posted
Speaker 1: a surprise profit and revenue that toped analyst estimates.
Speaker 2: And one other note in the auto industry. Karen, we
Speaker 2: know Tesla's cutting headcount by more than ten percent around
Speaker 2: the world. The latest victims of the cost cutting are
Speaker 2: summer in turns. More from Bloomberg's Doug Prisner.
Speaker 12: Tesla is rescinding offers just weeks before internships were set
Speaker 12: to start. One student said his start date was three
Speaker 12: weeks away, and he'd already spent thousands on housing. It's
Speaker 12: near the end of the school year. With little time
Speaker 12: to find replacement gigs for the summer, the aspiring Tesla
Speaker 12: interns took to LinkedIn and appeal to other employers. In
Speaker 12: one instance, a current Tesla employee ask her own virtual
Speaker 12: LinkedIn network to step up and nab one of the interns.
Speaker 12: The post read, please make our loss your gain. In
Speaker 12: New York, I'm deg prisoner Bloomberg Radio.
Speaker 1: All right, Doug, thank you, and it's time now for
Speaker 1: a look at some of the other stories making news
Speaker 1: in New York and around the world. For that were
Speaker 1: joined by Bloomberg's and Michael Barr Michael, good Morning, Good.
Speaker 9: Morning, Karen. Mayor Eric Adams praise the NYPDE after the
Speaker 9: arrests of about three hundred people at Columbia University and
Speaker 9: City College of New York. It comes two weeks after
Speaker 9: the pro Palestinian protests first started.
Speaker 13: These external actors with a history of escalating situations and
Speaker 13: trying to create chaos, not to peacefully protest, but create chaos.
Speaker 9: Adams went on to say the NYPD's precision policing ensure
Speaker 9: that the operation was organized, calm, and that there were
Speaker 9: no injuries or violent clashes. Donald Trump faces additional sanctions
Speaker 9: in his hush money trial as he returns to court
Speaker 9: today for another contempt hearing followed by testimony. Prosecutors are
Speaker 9: seeking thousand dollars fines for each of four comments by
Speaker 9: Trump that they say violated a judge's gag order barring
Speaker 9: him from attacking witnesses, jurors, and others close to the case.
Speaker 9: That is on top of a nine thousand dollars fine
Speaker 9: the judge imposed on Tuesday related to nine separate gag
Speaker 9: order violations. During a campaign stopped yesterday. On a court
Speaker 9: off day, Trump and Freeland Michigan focused on the judgments
Speaker 9: against him.
Speaker 14: The judge, by the way, is the most conflicted person
Speaker 14: in the history. I don't think there's ever been a
Speaker 14: more conflicted judge.
Speaker 15: Crookeet and conflicted.
Speaker 9: Trump also campaigned in Wisconsin. Manhattan prosecutors are asking for
Speaker 9: a September retrial for Harvey Weinstein. More from Bloomberg's Charlie Pellant.
Speaker 16: It was the disgraced movie mogul's first court appearance since
Speaker 16: his twenty twenty rape conviction was overturned by an appeals
Speaker 16: court last week. Prosecutor Nicole Blomberg told the judge that
Speaker 16: one of Weinstein's accusers is prepared to testify again. She
Speaker 16: suggested locking in a date after Labor Day. The seventy
Speaker 16: two year old, who has cardiac issues and diabetes, has
Speaker 16: been in a hospital since his return to the city
Speaker 16: jail system Friday from an upstate prison in New York.
Speaker 16: Charlie Pellett Bloomberg.
Speaker 9: Radio President Joe Biden will expand two national monuments in
Speaker 9: California today, protecting nearly one hundred twenty thousand additional acres
Speaker 9: from development. It's part of a White House gold to
Speaker 9: designate more in land and water for conservation than any
Speaker 9: previous administration. The bulk of the newly protected land will
Speaker 9: enlarge the San Gabriel Mountains National Monument. Global News twenty
Speaker 9: four hours a day and whenever you want it with
Speaker 9: the Bloomberg News. Now, I'm Michael Barr, and this is.
Speaker 1: Bloomberg Karen, Larry, Michaelbarr, thank you time now for the
Speaker 1: Bloomberg Sports Update with John stash Hour. John, good morning.
Speaker 9: You don't want to Karen.
Speaker 14: When the Nickson Sixers played previously in this series in Philadelphia,
Speaker 14: six erstar Joel mb lamented that there were Sony Nick
Speaker 14: fans in attendance, figures to be more of the same tonight,
Speaker 14: for Game six doesn't tip off until nine o'clock. Nick
Speaker 14: Stilly the series three to two, but Philly comes off
Speaker 14: that comeback overtime Game five winning New York tyrees. Maxi
Speaker 14: hit two three pointers in the last thirty seconds. The
Speaker 14: NBA says the first one should not have counted that
Speaker 14: he should have been called for traveling two blowouts last night,
Speaker 14: Celtics finished off the injury riddled Heat scored forty one
Speaker 14: points in the first quarter of the route was on
Speaker 14: Boston one one eighteen to eighty four, won the series
Speaker 14: four to one. Dallas over the Clippers in LA one
Speaker 14: twenty three to ninety three. Luk At Donsi despite a
Speaker 14: knee injury and feeling ill, scored thirty five and the
Speaker 14: MAVs go home up three too. Edmonton Oilers, moving on,
Speaker 14: beat the Kings four to three, took the series in five.
Speaker 14: Dallas top Vegas three to two. Stars were down to nothing,
Speaker 14: now they're up three to two. Mets ho's to the
Speaker 14: Cubs Yankees in Baltimore. A total of only three runs
Speaker 14: scored combined in the two games. Mets lost one nothing.
Speaker 14: All teams had five hits. The Mets blank by Shota Imanaga,
Speaker 14: the Cub's thirty year old lefty import from Japan. He's
Speaker 14: now five to oher with an ERA of zero point
Speaker 14: seven eight. Yankees and Orioles one swing provided all the runs.
Speaker 8: Here's Capreman and the pitch is whacked down the right
Speaker 8: field lineman. If it's fair, it's gone, and it is gone.
Speaker 8: A whole run just inside the foul pole down the
Speaker 8: right field line haswago. Caprera gets to Corbin Burns but
Speaker 8: two Ron.
Speaker 14: Homer WFA n Yanks one two nothing. Luis Heel gave
Speaker 14: up to US two hits the five out save for
Speaker 14: Clay Holmes's tenth. He's unscored upon in fifteen outings. Mets
Speaker 14: and Yankees both the day games today. Four straight win
Speaker 14: for the Red Sox fet the Giant sixty two Nationals
Speaker 14: back to five hundred and one nothing to win to
Speaker 14: Texas the eight and shut out the Pirates.
Speaker 15: John Stash, Edward Bloomberg Sports, Karen and Nathan.
Speaker 17: Coast to Coast on Bloomberg Radio nationwide on Sirius XM,
Speaker 17: and around the world on Bloomberg dot Com and the
Speaker 17: Bloomberg Business app. This is this Bloomberg Daybreak.
Speaker 2: Good morning. I'm Nathan Hager. Higher for longer. It is
Speaker 2: still the mantra from the Federal Reserve after the sixth
Speaker 2: straight pause in interest rates from the Central Bank, but
Speaker 2: Chair J. Powin company are keeping hope alive that they
Speaker 2: could deliver a rate cut this year, though that hope
Speaker 2: might not quite be conviction. For more on the decision
Speaker 2: and the market reaction, Let's bring in Bloomberg's pretty Koopta.
Speaker 2: Good morning, Critty. It seemed like the takeaway for me
Speaker 2: at least was that the Fed isn't quite there yet
Speaker 2: on inflation, but it feels like it's getting there. Was
Speaker 2: that the takeaway for you.
Speaker 15: At least they attempted to tell that message.
Speaker 18: They also said that, look that they're having that last
Speaker 18: mile argument where it's always going to be tougher to
Speaker 18: kind of root out the inflation as you get closer
Speaker 18: and closer to the target. And that's a statement that
Speaker 18: not only the FED has made, but central banks around
Speaker 18: the world as well.
Speaker 15: What's really interesting is they're basically saying.
Speaker 18: That the hikes are off the table with the hire's
Speaker 18: a higher bar to hike in the context is everything here, Nathan,
Speaker 18: because you remember those comments from John Williams and New
Speaker 18: York Fed president who said if the data supports it,
Speaker 18: they would consider a hike. Now that wasn't his base case,
Speaker 18: of course, but he's just kind of stated the obvious,
Speaker 18: and the markets really took that as weight. Hold On
Speaker 18: a second, do we need to put a hike back
Speaker 18: on the table chair? Powell really threw some cold water
Speaker 18: on that idea, saying, actually, no, we are still kind
Speaker 18: of in a easier mindset at least, and that seems
Speaker 18: to perhaps be it. And he didn't just do it
Speaker 18: from his commentary, Nathan, He did it I thought kind
Speaker 18: of an interesting way from his QT policy and then
Speaker 18: I say his but I mean the FEDS of course,
Speaker 18: where you are starting to see a little bit of
Speaker 18: a deceleration in those in that qtigue starting in June,
Speaker 18: and that in itself, even though it is still quantitative tightening,
Speaker 18: is relatively easier in terms of the policy itself.
Speaker 2: Although it was interesting for Powell to note that the
Speaker 2: slow down in the quantitative easing doesn't necessarily mean that
Speaker 2: that's a change in there thinking about when it comes
Speaker 2: to interest rate policies, really trying to keep those two separate.
Speaker 18: And we should clarify for a global audience when we're
Speaker 18: talking about this decrease in quantity of tightening. We're going
Speaker 18: from out sixty billion dollars a month of just letting
Speaker 18: kind of maturities roll off the balance sheet to about
Speaker 18: twenty five billion dollars a month.
Speaker 15: So it is significant, but again.
Speaker 18: It's not like actively selling bonds on the market. It
Speaker 18: is still a continuation of their ongoing policy. But you're
Speaker 18: one hundred percent right that they separated that from the
Speaker 18: interest rate story. What's important is that they really took
Speaker 18: hikes off the table, and I thought Alberto Gallo actually
Speaker 18: tweeted about this from over at Andromeda Capital and said
Speaker 18: it quite beautifully. In terms of what to pay attention
Speaker 18: to He says, keeping front end rates high while tapering
Speaker 18: QT is like pulling the handbrake while pushing the accelerator pedal.
Speaker 18: So the commentary you've heard off the back of Chair
Speaker 18: Powell's presser has simply been is this the FED trying
Speaker 18: to guide the markets and saying, well, actually, you guys
Speaker 18: have gotten ahead of yourself. We're we have not deviated
Speaker 18: from what we've been saying for the past couple of months.
Speaker 2: It was really interesting as well to see that sort
Speaker 2: of whipsaw reaction when the Chairman took the idea of
Speaker 2: rate hikes off the table, only for the higher for
Speaker 2: longer message to sync in. I wonder if we're going
Speaker 2: to get more market whip sawing when the focus turns
Speaker 2: right back to big tech earnings after the bell when
Speaker 2: Apple reports.
Speaker 15: I'm sure we will.
Speaker 18: I mean, I thought it was interesting about the stock
Speaker 18: market reaction. We'll put the bond market on the side
Speaker 18: for a second. Is that the stock market was selling
Speaker 18: off way ahead of Chair Pow. It's almost like they
Speaker 18: anticipated what he was going to say. And it was
Speaker 18: an interesting because it was initially a positive that a
Speaker 18: hike wasn't coming, but then a negative that a cut
Speaker 18: was getting perhaps pushed further and further out, at least
Speaker 18: in terms of pricing in the bond market. Big tech
Speaker 18: earnings could change all that. Apple in particular, of course
Speaker 18: a big piece of the focus.
Speaker 9: Now.
Speaker 18: It's important to keep in mind, Nathan, that Apple shares
Speaker 18: and the S and P five hundred, just given it
Speaker 18: is the biggest weight in the index, have tracked very
Speaker 18: very closely. It's even driven the S and P five
Speaker 18: hundred to those record highs. But lately the stock has
Speaker 18: been diverging from what the index has done as a whole.
Speaker 18: Lot of that do to some of that China weakness.
Speaker 18: The question after the bell today will be does that continue.
Speaker 2: This is Bloomberg day Break Today, your morning brief on
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