Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning.
Speaker 1: I'm John Tucker and I'm Karen Moscow. Here are the
Speaker 1: stories we're following today.
Speaker 2: Karen, we begin overseas where traders are following the political
Speaker 2: landscape in France. City Group strategists downgraded the region to
Speaker 2: neutral from overweight, citing risks of extreme parties gaining ground
Speaker 2: in the upcoming parliamentary elections, and Bloomberg's Ewan Pots joins
Speaker 2: us for the latest on what's happening in Europe. You
Speaker 2: and good morning, John and Karen.
Speaker 3: European stocks fairly flat this morning after in Vester's flocked
Speaker 3: to haven assets at the end of last week. Political
Speaker 3: volatility in France very much in focus, with latest polls
Speaker 3: putting President at Manual Macron's party in third place out
Speaker 3: of upcoming elections to the French Parliament. The party of
Speaker 3: far right leader Marine Le penn currently has a polling lead,
Speaker 3: with a left wing coalition in second place. They presented
Speaker 3: plans to pick apart most of Macron's seven years of
Speaker 3: economic reforms and set France on a collision course with
Speaker 3: the European Union over fiscal policy. The first round of
Speaker 3: voting takes place in just under two weeks time. In London,
Speaker 3: immune potsplinback radio all.
Speaker 1: Right you and Thanks, and the political upheaval in France
Speaker 1: has led Paris to lose its title as Europe's largest
Speaker 1: equity market. Billions of dollars are wiped off the market
Speaker 1: cap of French firms after Emmanuel mccron called the surprise
Speaker 1: snap election. Stocks in the country are now collectively worth
Speaker 1: about three point one three trillion dollars, narrowly behind London's
Speaker 1: three point one eight trillion. The CATC forty index has
Speaker 1: erased all its gains for twenty twenty four.
Speaker 2: And meanwhile, in the UK, Richie Sunac's Conservatives headed for
Speaker 2: a wipeout in the July fourth general election. At least
Speaker 2: that's according to new polling data. Servation survey sees the
Speaker 2: Tories getting only seventy two seats, which would be their
Speaker 2: worst election performance in two centuries. One of the reasons
Speaker 2: for their slide in the polls has been the emergence
Speaker 2: of the right wing Reform UK led by Nigel Farage,
Speaker 2: the party launching its manifesto today well John.
Speaker 1: As the political turmoil continues in Europe, new data show
Speaker 1: the US mopped up almost one third of all the
Speaker 1: global investment flows since COVID analysis by the International Monetary
Speaker 1: Fund shows that the US's share of financial flows has
Speaker 1: climbed with higher interest rates of major draw for overseas investors.
Speaker 1: The pre pandemic US average share was just eighteen percent.
Speaker 1: The US also pulled in a fresh wave of foreign
Speaker 1: direct investment. However, FED rate policy and the presidential election
Speaker 1: could affect the fiscal deficit.
Speaker 2: And Karen the Markets Now Trader is going to be
Speaker 2: digesting a lot of FED speak this week following last
Speaker 2: week's CPI reading and FED decision. We're going to hear
Speaker 2: from the New York FED President John Williams today as
Speaker 2: well as Patrick Carker or Philadelphia and fedkevinor Lisa Cook.
Speaker 2: Later this week, we'll hear from the Dallas FED President
Speaker 2: Lorie Logan and the Chicago FED President Austin Goolsby. Over
Speaker 2: the weekend, Minneapolis FED President Neil kesh Carey said on
Speaker 2: CBS has faced the nation that rate cuts are still
Speaker 2: a ways away.
Speaker 4: We're in a very good position right now to take
Speaker 4: our time, get more inflation data, get more data on
Speaker 4: the economy, on the labor market, before we have to
Speaker 4: make any decisions. So we're in a strong position. But
Speaker 4: if you just said there's going to be one cut,
Speaker 4: which is what the mediaan indicated that would likely be
Speaker 4: toward the end of the year.
Speaker 3: Well John.
Speaker 1: Minneapolis FED President Neil Kashgari's comments are echoed by Cleveland
Speaker 1: FED President Loreddamester, who spoke with our Michael McKee. Mester
Speaker 1: says monetary policy is well positioned to ensure that inflation
Speaker 1: moves back down to two percent over time.
Speaker 5: It's going to take some time to get inflation back
Speaker 5: to two percent all the way back. So my projection
Speaker 5: is that we probably won't get there until twenty twenty six,
Speaker 5: but we'll see progress continue in my modal view, and
Speaker 5: that's enough right to then say, okay, it's time to
Speaker 5: start the process of bringing rates down.
Speaker 1: Cleveland FED president the REDDA Master says the central bank
Speaker 1: is in a comfortable position to address inflation if data
Speaker 1: comes in hotter than expected, or to address any potential
Speaker 1: disinflationary trends that emerge.
Speaker 2: And moving to politics now, with the November presidential election approaching,
Speaker 2: the ranks of double hater voters have hit an all
Speaker 2: time high. This according to new analysis from Pew Research,
Speaker 2: double haters make up one quarter of the electorate. That's
Speaker 2: nearly twice as many as at this point in twenty twenty.
Speaker 2: Double haters are disaffected voters who say they don't like
Speaker 2: either major party presidential candidate. Biden and Trump are taking
Speaker 2: roughly equal measures of these voters in battleground states, with
Speaker 2: a May Bloomberg News Morning Console pull showing President Biden
Speaker 2: winning twenty five percent to Trump's twenty two percent.
Speaker 1: Well John, As Donald Trump looks to return to the
Speaker 1: White House, he's proposing a new idea of using tariff
Speaker 1: hikes as a way to pay for some income tax cuts.
Speaker 1: Former Treasury Secretary Larry Summers blasted Trump's plan, saying it'd
Speaker 1: be damn imaging to both the US and the global economy.
Speaker 1: Summers tells Bloomberg that Trump's plan to use tariffs in
Speaker 1: his way is a quote prescription for the mother of
Speaker 1: all stagflations.
Speaker 4: Look, I don't think there's been a more inflationary.
Speaker 3: Presidential economic policy platform in my lifetime.
Speaker 1: And asked about Larry Summer's criticisms, a Trump campaign spokesperson said, quote,
Speaker 1: Americans can expect President Trump's second term economic agenda will
Speaker 1: end at Joe Biden's inflation crisis that continues to rob
Speaker 1: working families of thousands of dollars every month.
Speaker 2: Oils slipped following mixed economic data out of China, and
Speaker 2: the pullback and oil came as the Biden administration reportedly
Speaker 2: is ready to reopen the US stockpile. Prices jump in
Speaker 2: the summer months ahead. Amos Hawkstain, the President Biden's closest
Speaker 2: advisor on energy, telling the Financial Times the administration will
Speaker 2: do everything it can to make sure the market is
Speaker 2: supplied well enough to ensure low prices as low prices
Speaker 2: as possible for American consumers, which includes releasing more oil
Speaker 2: from these strategic petroleum reserves. He says he believes there's
Speaker 2: enough oil in the stockpile if it becomes necessary to
Speaker 2: draw from the reserves.
Speaker 1: Well elsewhere on the energy front, here, John Bill Gates
Speaker 1: said he's prepared to throw billions of dollars into a
Speaker 1: next generation nuclear power plant project in Wyoming to make
Speaker 1: growing US electricity needs. The billionaire tell Cbs has faced
Speaker 1: the nation that his energy startup, Terra Power, relies on
Speaker 1: sodium cooling rather than water, which is believed to both
Speaker 1: simplify the process while also being safer, and can make
Speaker 1: nuclear energy a source of a low cost electricity in.
Speaker 6: Two big backers of this project are the terr power vesters,
Speaker 6: of which I'm the largest. I put in over a
Speaker 6: billion and I'll put in billions more. And then the
Speaker 6: federal government, who is helping because of the strategic benefits
Speaker 6: of having energy security and so we're not asking any
Speaker 6: of the utility customers to take any risk and have
Speaker 6: to pay high electricity prices. All of that risk is
Speaker 6: on terror Power and the US.
Speaker 1: Government Bill gates as Terror Powers plant is on track
Speaker 1: to start producing power by twenty thirty.
Speaker 2: And here it comes the season's first heat wave set
Speaker 2: to hit the East Coast this week. Excessive heat watches
Speaker 2: have been posted from Michigan to New Hampshire. Manhattan is
Speaker 2: set to reach ninety one degrees tomorrow as steadily get
Speaker 2: hotter throughout the week. Electric rids and wholesale prices will
Speaker 2: be stressed as demand rises with the temperatures, which could
Speaker 2: slow trains, tie it freight and passenger traffic, and can
Speaker 2: also lead to increased heat illnesses.
Speaker 1: And it's time now for a look at some of
Speaker 1: the other stories making news in New York and around
Speaker 1: the world. For that, we're joined by The Blottleberg's Michael
Speaker 1: Barr Michael good Morning, Good.
Speaker 7: Morning care In. The israelilitary says it is pausing fighting
Speaker 7: during daytime hours along a route in southern Gaza to
Speaker 7: free up a backlog of humanitarian aid deliveries for desperate Palestinians.
Speaker 7: It should allow eight trucks to reach the Israel controlled
Speaker 7: Karam Shalom crossing and travels safely to a highway to
Speaker 7: deliver supplies to other parts of Gaza. The United Nations
Speaker 7: says it welcomes the move, but adds that so far
Speaker 7: no aid has left Karam Shalom. A peace conference to
Speaker 7: end the warn Ukraine wrapped up Sunday, with eighty countries
Speaker 7: jointly calling for any peace agreement between Russia and Ukraine.
Speaker 7: EU Commission President Ursulavderlane says peace won't be achieved in
Speaker 7: a single step.
Speaker 8: I call on Russia to heed the message of the
Speaker 8: international community, respect the territorial integrity and sovereignty of Ukraine,
Speaker 8: put an end to imperialist violence, and bring back the children.
Speaker 7: Russia was not invited to the conference in Switzerland. Several
Speaker 7: mass shootings took place in the US over the weekend.
Speaker 7: In the Detroit suburb of Rochester Hills, Michigan, a vigil
Speaker 7: took place for nine people who were wounded at a
Speaker 7: splash pad. The victims including two children and a pregnant woman.
Speaker 7: Rochester Hills Mayor Brian Barnett spoke at the vigil.
Speaker 9: Thank you for being for caring enough to be here today,
Speaker 9: and if there's anything that the city can do, we.
Speaker 10: Stand ready to do it.
Speaker 9: We're stunned and hurt as well, but we know that
Speaker 9: we have a role to play and we want to do.
Speaker 10: It as best we can.
Speaker 7: The gunman was found dead in his home from an
Speaker 7: apparent self inflicted gunshot wound. In Texas, two people were
Speaker 7: killed and several others injured during a June teenth celebration
Speaker 7: over the weekend. In round Rock, police a shots were
Speaker 7: fired during a fight near a concert stage. And in Methuen, Massachusetts,
Speaker 7: officials say seven people were shot after a pop up
Speaker 7: party organized over social media erupted in gunfire. A week
Speaker 7: and a half before the first presidential debate, Former President
Speaker 7: Donald Trump meets today with the House Speaker Mike Johnson
Speaker 7: at Trump's resort in Mara Lago. Congressional Republicans are looking
Speaker 7: at how to hold on to the slim majority they
Speaker 7: have in the House. The Outsiders, based on the novel
Speaker 7: of the same name by Susan Elouise Hinton, won the
Speaker 7: Tony Award for Best Musical Producer. Matthew Rigo thanked the
Speaker 7: author for sharing your story.
Speaker 9: Susie.
Speaker 11: I'm here to tell you that your story and his
Speaker 11: eternal message of love and family and stain gold has
Speaker 11: forever changed all of our lives.
Speaker 10: We love you, Thank you.
Speaker 7: I Stereophoni took home Best Play and Appropriate Best Play
Speaker 7: Revival Global News twenty four hours a day and whenever
Speaker 7: you want it with Bloomberg News Now. I'm Michael Barr.
Speaker 7: This is Bloomberg Karen.
Speaker 1: Yes, stay gold. Michael Barr, thank you time now for
Speaker 1: the Bloomberg Spores Update with John Stanishauer. John, good morning,
Speaker 1: Good morning care.
Speaker 12: In the one hundred and twenty fourth US Open came
Speaker 12: down the price of the Shambo and Rory McElroy down
Speaker 12: the stretch at times tied both hell leads on the
Speaker 12: back nine mcelroyal, but Theeah today three shots behind, led
Speaker 12: by two with five holes to play and then had
Speaker 12: a nightmare finish three Vogue. He's on sixteen and eighteen.
Speaker 12: He missed a par put of no more than four
Speaker 12: feet to Shamba took advantage a tremendous save for par
Speaker 12: on the last hole gave him the one shot victory
Speaker 12: the second Open title. On eighteen, his t shot landed
Speaker 12: near a tree, his second shot in a bunker well
Speaker 12: away from the green, but his sands shot got him
Speaker 12: within four feet of the hole.
Speaker 13: Thousands USGA Championship.
Speaker 9: I mean, just stack him on top.
Speaker 10: That bunker shot was the shot of my life.
Speaker 9: And I'll forever be thankful that I've got longer wedges.
Speaker 12: Shambo referenced to total number of USGA events that have
Speaker 12: been played. Heartbreak for Mcelroyalo's guy gone a decade without
Speaker 12: winning a major. Eleven times since then he's finished in
Speaker 12: the top five. This was his fourth second place finish.
Speaker 12: Yankees quick starting Boston Aaron Judge home run of the
Speaker 12: first in his twenty sixth with the Red Sox won
Speaker 12: nine to three and won the series. Boston pulled away
Speaker 12: after the Yanks down four to three in the seventh,
Speaker 12: had the bases loaded, no one out and didn't score
Speaker 12: Mets with a city field sweep of the Padres, winning
Speaker 12: eleven to six. Mets have won five in a row
Speaker 12: nine of the last eleven. Rough weekend for the Dodgers.
Speaker 12: They lost Yoshinovo Yamamoto to a strained rotator cuff, and
Speaker 12: then Mookie Betts got hit with a pitch broke his hand.
Speaker 12: They did win yesterday at show O Tony Homer twice.
Speaker 12: Celtics tonight with a second chance to win the NBA Championship,
Speaker 12: this time at home. They lead Dallas three games to one.
Speaker 12: Another Caitlin Clark incident in the WNBA game against the
Speaker 12: Chicago Sky. This time it was fellow rookie Angel Reese
Speaker 12: who hit Clark in the head. Fever won the game.
Speaker 12: Clark scored twenty three points, had eight rebounds nine assists.
Speaker 12: John Stash, I want Bloomberg Sports Karen.
Speaker 10: Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 10: and around the world on Bloomberg dot Com and the
Speaker 10: Bloomberg Business app. This is Bloomberg Daybreak at.
Speaker 2: US Futures right now indicate a mixto open on Wall
Speaker 2: Street this morning. No short of events for investors to
Speaker 2: launch onto us. We start the new week from the
Speaker 2: Bloomberg Interactive Brokers studios. I'm John Tucker along with Karen Moscow.
Speaker 2: We have the escalating concern about political volatility in France.
Speaker 2: We had fed to speak over the weekend. Neil kush
Speaker 2: Karri is saying, the central Bank and tickets time before
Speaker 2: cutting rates. Let's get you set up for the trading
Speaker 2: day ahead. We're joined now by Bloomberg's Critty Gupta, host
Speaker 2: of Markets today in the UK. Pleasure to talk to you, Againtty.
Speaker 2: Politics do matter for markets. In fact, France's stock market
Speaker 2: now falling behind the UK. Do I have that right?
Speaker 3: And that you do?
Speaker 13: And this is remember something that they kind of overtook
Speaker 13: about two years ago, and this latest drop behind the
Speaker 13: UK's market cap is coming off of, of course, the
Speaker 13: electoral volatility that you were talking about, about five percent
Speaker 13: correction that you saw in the stock market. We'll call
Speaker 13: that a mini correction, if you will. For the equities
Speaker 13: they're seeing a little bit of a rebound today. But
Speaker 13: what you need to know over the weekend is not
Speaker 13: only is there this risk from the far right to
Speaker 13: Emmanuel mcran, a revamped perhaps of what we saw in
Speaker 13: twenty seventeen from Marine la Penn. Now he's dealing with
Speaker 13: it from the left to and this is significant when
Speaker 13: we're talking about policies that impact the markets, because this
Speaker 13: is a group that is not only now that he
Speaker 13: has to contend with for the snap legislative elections, but
Speaker 13: wants to reverse government pension reform, reinciate the right to
Speaker 13: retire at just sixty and this is a really big deal.
Speaker 13: A lot of French are very passionate about. It has
Speaker 13: led to a lot of protests on the streets, big
Speaker 13: trash bags, for example, across Paris as a sign of
Speaker 13: protests for a lot of the people include a lot
Speaker 13: of people who were protesting Emmanuel mccron increasing the potential
Speaker 13: retirement age to sixty three even sixty four in a
Speaker 13: way to kind of control the country's finances. Marine la
Speaker 13: Penn on the far right on the other hand, then
Speaker 13: talking about perhaps unleashing the spending caps. These are the
Speaker 13: concerns that the markets are worried about when it comes
Speaker 13: to what policies might be shaping France in the next
Speaker 13: couple weeks.
Speaker 2: Let's move on to the US. Oh, we've got the
Speaker 2: FED and we've gotten the more hawkish despite some of
Speaker 2: the data that we've seen. Give us an idea of
Speaker 2: what's on this front, because it's a very delicate balancing
Speaker 2: act for the Federal Reserve. At this point. You don't
Speaker 2: want inflation to rise or rise any further. At the
Speaker 2: same time, you don't want to trash the economy.
Speaker 13: You definitely don't. And I think this is where you
Speaker 13: put your J. Powell Powell thinking cap and say, look,
Speaker 13: you're data dependent, right, And I hate to use that
Speaker 13: word because it's so frustrating, But here's really where you
Speaker 13: need to keep in mind is what the data told us.
Speaker 13: Last week, you had CPI data that was prepped welcomed
Speaker 13: by the Fed, PPI numbers that were again welcomed by
Speaker 13: the Fed, showing that that disinflationary path is continuing. But
Speaker 13: then on Friday, those consumer sentiment numbers hitting a seven
Speaker 13: month low and really crashing even two thousand nine lows
Speaker 13: in certain parts of the market. Now this is concerning
Speaker 13: because if the economic data is showing that inflation is
Speaker 13: coming down, and you have job growth that is still
Speaker 13: picking up in still growing, why is consumer sentiment so
Speaker 13: low and how does that affects spending? Ability, especially ahead
Speaker 13: of the election. That really changed a little bit of
Speaker 13: the market pricing. Whereas the Fed said, look, there could
Speaker 13: be one cup this year, maybe even two, the marketers
Speaker 13: are saying, well, actually, this could be more and more
Speaker 13: of a twenty twenty five problem. And remember, the Fed
Speaker 13: is going to likely be on the sidelines as we
Speaker 13: get closer to the election. At least that's the assumption
Speaker 13: from Global Wall Street.
Speaker 2: Right now, you're listening to Bloomberg Daybreak today, your morning brief.
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