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Speaker 1: From the Bloomberg Interactive Burger Studios. This is Bloomberg day

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Speaker 1: Break for Friday, June second. Coming up today, the Senate

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Speaker 1: passes a dead deal. It now awaits President Biden's signature.

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Speaker 1: Wall Street prepares for masage jobs for.

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Speaker 2: Board, Jamie Diamond heads to Taiwan after wrapping up his

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Speaker 2: visit to China.

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Speaker 1: And a big shipmaker reports earnings in the midst of

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Speaker 1: the ai frenzy.

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Speaker 3: The White House says President Biden is fine after he

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Speaker 3: took a tumble on stage. Plus the piano man's record

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Speaker 3: run at Madison Square Garden is coming to an end.

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Speaker 4: I'm Michael blarm or Ahead, I'm John Stanchern. Sports easy

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Speaker 4: wins for the Nuggets. They beat the heat to start

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Speaker 4: the NBA Finals. The Mets finished a suite for the Phillies.

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Speaker 5: That's all straight.

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Speaker 6: Ahead on Bloomberg day Break, The business news you need

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Speaker 6: to sturn your day in just one fifteen minute podcast

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Speaker 6: each morning on Apples, Spotify, the Bloomberg Business Appen everywhere

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Speaker 6: you get your podcasts.

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Speaker 1: Good morning, I Maybe Morris and I'm Karen Moscow. Here

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Speaker 1: are the stories we're following today, Karen. The Senate has

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Speaker 1: passed the debt limit bill. The vote came late into

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Speaker 1: the night after a day long debate over budget cut.

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Speaker 1: Senate Majority Leader Chuck Schumer says Democrats managed to preserve

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Speaker 1: their agenda.

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Speaker 7: The bill preserves the lion's share of the historic investments

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Speaker 7: we've made to grow our economy make the US more

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Speaker 7: competitive on the world stage, which the Republican caucus in

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Speaker 7: the House seemed intent on tearing down. They didn't get

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Speaker 7: to do that.

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Speaker 2: Instead, Schumer says they were able to keep funds in

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Speaker 2: place for infrastructure and job growth. This as Minority Leader

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Speaker 2: Mitch McConnell says, the bill is a step in the

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Speaker 2: right direction, but make.

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Speaker 8: No mistake, there's much more work to be done. The

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Speaker 8: fight to real and wasteful spending is far from over.

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Speaker 2: McConnell calls the bill a quote step toward fiscal sanity.

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Speaker 2: The measure now goes to President Biden, new plans to

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Speaker 2: sign it just days ahead of a US default.

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Speaker 1: Well amey the bill by a vote of sixty three

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Speaker 1: to thirty six. Five Democrats voted no, and several Republicans

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Speaker 1: voice strong opposition to the measure. Senator Ran Paul said

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Speaker 1: the measure doesn't go far enough to reign and spending.

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Speaker 6: A debt deal that creates no limits to the debt

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Speaker 6: accumulation over two years is not fiscally responsible and should

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Speaker 6: be rejected.

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Speaker 1: Senator Paul voted against the bill, so did Mike Braun.

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Speaker 1: We spoke with the Republican Senator from Indiana just ahead

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Speaker 1: of the vote.

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Speaker 3: This is just the beginning of future agony until we

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Speaker 3: get some discipline in common sense and the guardrails which

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Speaker 3: we do.

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Speaker 5: Not have currently.

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Speaker 1: And Senator Braun spoke with Joe Matthew and Kaylee Lines

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Speaker 1: on Bloomberg Sound On. Catch the program weekdays at one

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Speaker 1: pm Eastern and listen to the show on demand wherever

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Speaker 1: you get your podcasts.

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Speaker 2: And with the threat of a default squarely behind us,

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Speaker 2: attention turns now to today's jobs report. Economists forecast a

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Speaker 2: gain of one hundred and ninety five thousand jobs in

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Speaker 2: May and an employment rate ticking up to three point

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Speaker 2: five percent. From Bloomberg Economics, corresponded Michael McKee.

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Speaker 9: The May jobs report is expected once again to show

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Speaker 9: a slow down in the pace of hiring, but although

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Speaker 9: that's been the case for some months now, it really

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Speaker 9: hasn't happened. Hiring has exceeded forecasts in nineteen of the

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Speaker 9: past twenty months. That's not what the FED wants to see.

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Speaker 9: Unemployment is expected to tick up, but only because more

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Speaker 9: people entered the labor force, not because companies are letting

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Speaker 9: people go. That's also not what the FED is looking

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Speaker 9: for At the moment. Investors see the Central Bank on

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Speaker 9: hold for June, but a strong report could lead to

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Speaker 9: a repricing if the data show the FED may not

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Speaker 9: have yet done enough to beat inflation. Michael McKee, Bloomberg Daybreak.

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Speaker 1: All right, Michael, thank you well. After wrapping up his

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Speaker 1: high profile trip to China, we're learning that JP Morgan

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Speaker 1: CEO Jamie Diamond is planning to visit Taiwan, and we

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Speaker 1: get the details from Bloomberg's John Tucker.

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Speaker 10: John, Good morning, Karen.

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Speaker 8: It's a trip that requires some delicate navigating the landscape

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Speaker 8: dotted with geopolitical hostilities. China always has something to say

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Speaker 8: when political figures visit Taiwan. Beijing fears it's going to

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Speaker 8: give Taiwan the image of a sovereign nation. It claims

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Speaker 8: the island as part of Chinese territory. A Diamond plans

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Speaker 8: a meeting with around five hundred local employees and customers. JPB.

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Speaker 8: Morgan's Taiwan operations include corporate and investment banking, commercial banking,

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Speaker 8: and an asset management business. He's at least the third

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Speaker 8: major global CEO to have visited Taiwan over the past

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Speaker 8: two weeks. In New York, I'm John Tucker Bloomberg Daybreak.

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Speaker 2: All right, thank you, John. First it was Jamie Diamond,

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Speaker 2: then Elon Musk. Now we're learning of another big name

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Speaker 2: planning to visit China. Bloomberg Stephen Angle reports from Hong Kong.

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Speaker 11: Another one of the top billionaires in the world, in fact,

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Speaker 11: who just lost his title as the world's richest man

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Speaker 11: to Elon Musk.

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Speaker 10: This week we're.

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Speaker 11: Talking about Bernard Arnault, the LVMH billionaire CEO. We're hearing

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Speaker 11: he's planning to a visit to China this month. Obviously,

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Speaker 11: the consumer is key to the big luxury brands, and

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Speaker 11: the consumer is sort of reluctant to spend right now.

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Speaker 2: Bloomberg Steven Angle notes China's the world's biggest luxury market

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Speaker 2: per capita. This visit would be the LVMH CEO's first

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Speaker 2: trip to China since the pandemic.

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Speaker 1: And Amy Apple is planning a deeper push into China,

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Speaker 1: along with other parts of Asia. It's part of the

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Speaker 1: iPhone maker's efforts to expand and revitalize its retail chain.

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Speaker 1: Sources a Apples looking to open fifteen new stores across

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Speaker 1: the Asia Pacific region, as well as five locations in

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Speaker 1: Europe and the Middle East, plus four additional outlets in

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Speaker 1: the US and Canada. In total, the company is proposing

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Speaker 1: fifty three new, relocated or remodeled stores over the next

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Speaker 1: four years.

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Speaker 2: Turning to markets, another chip maker highlighting artificial intelligence and

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Speaker 2: its earnings report, broadcoms as AI spending is helping fuel sales,

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Speaker 2: but not enough to offset a broader post pandemic slowdown.

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Speaker 2: Those details from Bloomberg's Charlie Pellett. Broadcom is one of

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Speaker 2: the world's biggest chip makers. It said revenue in the

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Speaker 2: fiscal third quarter will be about eight point eight five

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Speaker 2: billion dollars, of four point six percent from a year earlier.

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Speaker 2: Though that tops the ANOS estimate of eight point seven

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Speaker 2: six billion, it would represent its slowest growth in years.

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Speaker 2: On the plus side, the forecast suggested Nvidia is not

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Speaker 2: the only chip maker benefiting from the AI frenzy. Broadcoms

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Speaker 2: networking components helped direct traffic between computers in giant data centers,

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Speaker 2: and it's a maker of custom chips for some of

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Speaker 2: the biggest cloud computing providers in New York. Charlie Pellett

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Speaker 2: Bloomberg Daybreak, Thank you, Karen. Time now for a look

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Speaker 2: at some of the other stories making news in New

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Speaker 2: York and around the world. For that, we're joined by

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Speaker 2: Bloomberg's Michael Bark.

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Speaker 3: Good morning, Michael, Good morning, Amy. The White House says

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Speaker 3: President Biden is fine after he took a fall on

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Speaker 3: stage at the US Air Force Academy graduation ceremony in Colorado.

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Speaker 3: Biden had delivered the commencement address and shook hands with

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Speaker 3: graduates when he appeared to have tripped on a black

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Speaker 3: sandbag on the stage. Biden got back up and joked

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Speaker 3: he got sandbaged. Meanwhile, Former President Trump reacted to the.

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Speaker 6: News he actually fell down, Well, I hope he wasn't hurt.

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Speaker 3: Trump made his comments while campaigning and Iowa. We're learning

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Speaker 3: more about the last few days of Jeffrey Epstein's life

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Speaker 3: in a Manhattan jail cell. According to newly obtained records

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Speaker 3: by the Associated Press, Epstein called himself a coward two

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Speaker 3: weeks before ending his life. The disgrace Financier complained he

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Speaker 3: was struggling to adapt to life behind bars following his

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Speaker 3: July twenty nineteen arrest on federal sex trafficking and conspiracy charges.

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Speaker 3: The Disgrace Financier was under psychological observation at the time

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Speaker 3: for suicide attempt just days earlier that left his neck

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Speaker 3: bruised and scraped. Two more members of a far right

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Speaker 3: group have been sentenced for their roles on January sixth.

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Speaker 3: More from Bloomberg's Dan Sportsman.

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Speaker 10: Two more oathkeepers have been sentenced to prison for their

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Speaker 10: roles in the January sixth attack on the Capitol. Edward

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Speaker 10: Valeo received a three year sentence, while Roberto Minuda was

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Speaker 10: sentenced to four years and six months. Valeo was also

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Speaker 10: sentenced to three years of suit provis release following his

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Speaker 10: prison term. The government was looking for a sentence of

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Speaker 10: seventeen years for each of the defendants. Last week, the

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Speaker 10: founder of the far right group, Stuart Rhodes, received by

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Speaker 10: far the longest sentence of anyone who's been trying for

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Speaker 10: January sixth, receiving an eighteen year sentence handed down by

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Speaker 10: United States District Court Judge A Meet Metta in New

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Speaker 10: York on Dan Schwartzman Bloomberg Radio.

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Speaker 3: The average annual cost of raising a child in America

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Speaker 3: is nearly twenty one thousand dollars. That's according to a

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Speaker 3: study by a financial information provider smart Asset, which analyzed

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Speaker 3: three hundred and eighty one metro areas across the country.

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Speaker 3: Billy Joel says his record breaking stay at Madison Square

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Speaker 3: Garden is about to wind up.

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Speaker 1: Piano.

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Speaker 3: After one hundred and fifty shows, Joel announced that his

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Speaker 3: run will end. His MSG tour began almost a decade

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Speaker 3: ago with the promise that it would last as long

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Speaker 3: as the demand continues. Joel says, I'm kind of fibergasted

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Speaker 3: that it lasted as long as it did. The first

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Speaker 3: of the final ten shows to take place on October twentieth,

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Speaker 3: Global News twenty four hours a day, powered by more

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Speaker 3: than twenty seven hundred journalist and menalyist and over one

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Speaker 3: hundred twenty countries. I'm Michael Barr. This is Bloomberg Gaming.

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Speaker 2: All right, thank you, Michael. Time now for our Bloomberg

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Speaker 2: Sports update. For that, we bring in John stash.

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Speaker 5: Houer, thanks Amy.

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Speaker 4: The NBA Finals underway in Denver, where the Nuggets have

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Speaker 4: yet to lose in these playoffs and where there had

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Speaker 4: never been a finals game played before. Denver jumped in front,

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Speaker 4: led by seventeen at halftime, beat the Heat in Game one,

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Speaker 4: one oh four ninety three. Yet another triple dubber for Nicolo.

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Speaker 4: Jokichi's had them in six of his last seven games.

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Speaker 4: He had ten assists by halftime score twenty seven. It's

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Speaker 4: been only taking three shots in the first halt. Jamal

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Speaker 4: Murray scored twenty six, so did bam Adebayo in defeat.

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Speaker 4: He didn't have much help. Max Strus and Duncan Robinson

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Speaker 4: together took fourteen three pointers and missed all but one.

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Speaker 4: The Nuggets took twenty three throws and the Heat took

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Speaker 4: only two.

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Speaker 5: That's a playoff rerecord. The Denver coach Mike Malone, I.

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Speaker 12: Remind you our group if they didn't know, then Miami

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Speaker 12: went into Milwaukee in one game one, they went into

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Speaker 12: the Garden in New York City in one game one,

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Speaker 12: they won Game one up in Boston, so we did

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Speaker 12: not want them coming in here taking control of the

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Speaker 12: series on our court.

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Speaker 5: In two Sunday.

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Speaker 4: Stanley Cup Final begins tomorrow Florida, Vegas Yankees and Dodgers.

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Speaker 5: Tonight in La Luis.

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Speaker 4: Savarino against Clayton Kershaw, Metzalef Justin Verlander on the mount

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Speaker 4: of City Field versus Toronto and Met's finished a sweep

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Speaker 4: of the Phillies, whin he four to two, so they

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Speaker 4: only gave him three runs in three games. Mark Canna,

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Speaker 4: who drove in all four runs Wednesday, had the big

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Speaker 4: hit again.

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Speaker 5: At two run Homer to snap a tie.

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Speaker 4: Americans moving on at the French Open, Taylor Fritz Fancas

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Speaker 4: Tiafo both in four cents.

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Speaker 5: Coco Goff straight sets.

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Speaker 4: Good match coming up today, Top seat Carlos Elcarez versus

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Speaker 4: the Canadian Dennis shapavallav Rangers acquired Patrick Kane at the

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Speaker 4: trade deadline. Now a free agent, He's not gonna be

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Speaker 4: able to play for four to six months hip surgery.

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Speaker 4: Tom Brady and Sissy's retired. People connecting dots. He might

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Speaker 4: play for the team that he just became a part

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Speaker 4: owner of, the Las Vegas Raider.

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Speaker 5: John Stash Bloomberg sports.

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Speaker 6: From coast to coast, from New York to San Francisco,

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Speaker 6: Boston to Washington, DC, nationwide on Syrias Exam the Bloomberg

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Speaker 6: Business Appen Bloomberg dot com.

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Speaker 5: This is Bloomberg Daybreak. Hi, good Friday morning.

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Speaker 2: I'm Amy Morris. Earnings expectations on the rise, corporate confidence

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Speaker 2: starting to recover. Stocks have climbed after the debt ceiling

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Speaker 2: deal passed its last congressional hurdle. Laurie Calvasina is head

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Speaker 2: of US Equity strategy at RBC Capital Markets, and she

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Speaker 2: joins us now to talk about all of it. Laurie,

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Speaker 2: thank you for taking the time with us this morning.

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Speaker 2: That debt ceiling deal it passed late last night. How

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Speaker 2: does that fit into your outlook?

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Speaker 13: Well, thanks for having me as always Amy, And look,

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Speaker 13: I think that one of the things we heard over

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Speaker 13: the last month or so was non US safe investors,

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Speaker 13: particularly the hedge flang community. I've been looking at the

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Speaker 13: debt ceiling as a reason to be negative on the

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Speaker 13: US equity market, and to be fair to them, it

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Speaker 13: is something that traditionally, when we've had the dramas, has

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Speaker 13: knocked the market down pretty hard. When you looked at

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Speaker 13: US and based investors, they were more of the opinion

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Speaker 13: that we would get a deal done, and they were

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Speaker 13: looking for maybe some short term dislocations where they could

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Speaker 13: scoop up some stocks on the chief. They didn't end

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Speaker 13: up getting that, but I think that's one of the

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Speaker 13: reasons why the market didn't sell off, you know, kind

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Speaker 13: of heading into this drama. Now that being said, I

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Speaker 13: do view a resolution as a positive because if we

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Speaker 13: go back to that kind of non US based, you know,

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Speaker 13: kind of hedge fund type investor, we've pulled off a

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Speaker 13: reason that they had they had coming into the summer

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Speaker 13: to be very negative on the US equity market. So

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Speaker 13: I want to see how the market trades over the

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Speaker 13: next few days. I do think that this debt ceiling

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Speaker 13: drama was one more reason to push people out of

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Speaker 13: cyclicals and into tech stocks. If that reverses, we'll see.

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Speaker 13: I have to see, you know, how the market digests

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Speaker 13: that in the short term. But I do think in general,

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Speaker 13: this is a very very good development heading into the summer.

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Speaker 2: Yeah, so for futures seem to really like it. Down's

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Speaker 2: already up one hundred and forty points. The Treasury, though

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Speaker 2: depleted its cash buffers in the run up to the

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Speaker 2: debt ceiling and now has to build that back up.

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Speaker 2: Is this going to tighten liquidity?

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Speaker 13: Yeah, I think it's TVD. We certainly hear about that concern.

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Speaker 13: I do think though, if it does end up impacting liquidity,

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Speaker 13: it's one of many different factors driving the market right now.

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Speaker 13: And I do think that ultimately what's going to drive

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Speaker 13: stock prices in the second half of the year more

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Speaker 13: than any you know, other technical measure is going to

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Speaker 13: be whether or not we get a recovery in the

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Speaker 13: economy and in the earnings back drop in twenty twenty four.

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Speaker 13: And so far those stats are holding up. If you

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Speaker 13: look at earnings forecasts, if you look at GDP forecasts

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Speaker 13: on the street, the bulk of the damage to the

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Speaker 13: economy and the earnings backdrop are expected to be limited

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Speaker 13: to twenty twenty three. Stocks are very forward looking right now,

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Speaker 13: and as long as we can keep that recovery thesis intact,

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Speaker 13: I think we're going to you know, sort of weather,

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Speaker 13: any you know, kind of technical storm.

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Speaker 2: Do you expect that to impact equities?

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Speaker 1: You know?

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Speaker 13: I do think that, you know, with the liquidity measure,

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Speaker 13: I think we have to wait and see, you know, certainly,

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Speaker 13: if we're looking at where markets are right Now we

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Speaker 13: just raised our target forty two to fifty, and we're definitely,

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Speaker 13: you know, right up in that we have thought that

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Speaker 13: if you looked at the tech trade in particular, you know,

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Speaker 13: conditions are ripe for a breather. I hesitate to use

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Speaker 13: the word pullbacks because I think that sounds a little

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Speaker 13: bit more nefarious than it is. But I do think

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Speaker 13: that we've done so much work in the market it

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Speaker 13: wouldn't be surprising to me to see the market take

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Speaker 13: a little bit of a sigh of release, you know,

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Speaker 13: an edge back. That's the kind of thinking that's embedded

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Speaker 13: in that kind of flat target through year end. But

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Speaker 13: we'll have to see if it manifests. Certainly some of

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Speaker 13: our models are pointing to upside to forty four hundred

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Speaker 13: or forty six hundred.

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Speaker 2: Now you just touched on it. I want to dig

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Speaker 2: a little bit deeper. You up to your year end

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Speaker 2: target for the S and P five hundred. Why'd you

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Speaker 2: do that?

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Speaker 1: Well?

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Speaker 13: Look, see, you know, I've been on the road six

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Speaker 13: of the past seven weeks, you know, frankly, you know,

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Speaker 13: all over the country, both in the US and outside

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Speaker 13: of the US, talking to investors, and it was just

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Speaker 13: clear to me after those travels that the bears on

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Speaker 13: this market have been dead wrong, and they've been dead

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Speaker 13: wrong for bad reasons, and we really wanted to articulate

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Speaker 13: that with our target, is there a massive, you know,

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Speaker 13: kind of upswing moving from a forty one hundred number

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Speaker 13: which was our private target, to forty two to fifty zero.

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Speaker 13: But we really wanted to reiterate the view that, given

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Speaker 13: you know, the distance that we've traveled in this market,

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Speaker 13: we do think that these moves have been deserved. We

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Speaker 13: do think it's wrong to take a deeply negative view

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Speaker 13: from here. We do think that we are in a

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Speaker 13: messy post crisis normalization period. We don't buy the idea

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Speaker 13: that this is a bear market rally. We think some

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Speaker 13: of the concerns about bread are overblown. And frankly, we

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Speaker 13: think our recession was priced in in October and a

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Speaker 13: very onerous earnings backdrop was priced and in October, and

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Speaker 13: we think a lot of the bears have simply forgotten

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Speaker 13: that stocks are discounting mechanisms, and so we wanted to

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Speaker 13: really articulate what we thought was going to drive markets

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Speaker 13: in the second half of the year. And we do

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Speaker 13: think it's that recovery thesis. We also think that valuations

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Speaker 13: can be higher than some of our peers do simply

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Speaker 13: because of the moderation inflation and stabilation of a stabilization

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Speaker 13: of interest rate environments. The bearish sentiment that's been in

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Speaker 13: place is a contrarian bisignal in and of itself. And

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Speaker 13: think that we're in earning svision recovery period now. So

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Speaker 13: we really wanted to articulate those things very briefly.

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Speaker 2: We got about thirty seconds here. What are you watching

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Speaker 2: for for today?

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Speaker 13: In terms of today? You know, we don't have our

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Speaker 13: own forecasts on the economic data, but we do watch

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Speaker 13: for how we trade relative to consensus. I want to

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Speaker 13: see this sort of how the market digest this employment print,

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Speaker 13: regarding obviously what the set is going to do next.

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Speaker 13: There's been a kind of shift in thinking that we're

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Speaker 13: due for another hike to come up, you know, obviously,

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Speaker 13: you know, I think markets would do well if we

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Speaker 13: saw some of those expectations reduced, but we have to

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Speaker 13: see what the data shows.

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