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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: This is the Bloomberg Day b a Q, a podcast

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Speaker 2: available every morning on Apple, Spotify or wherever you listen.

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Speaker 2: It's Tuesday, the ninth of July in London. I'm Caroline

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Speaker 2: Hepka and.

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Speaker 3: I'm Stephen Carroll.

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Speaker 4: Coming up today, the White House scrambles to quell concerns

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Speaker 4: about multiple visits by a Parkinson's expert.

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Speaker 2: NATO allies gather in Washington as Russia presses its advantage

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Speaker 2: in Ukraine, and Kirs Starmer attends his first foreign summit

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Speaker 2: as Prime Minister.

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Speaker 4: Plus a ten percent drop. Morgan Stanley's Mike Wilson warrens

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Speaker 4: traders he sees an SMP five hundred correction as highly

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Speaker 4: likely before the US election.

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Speaker 2: Let's start with a round p of our top stories.

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Speaker 4: US President Joe Biden has not undergone any special neurological

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Speaker 4: testing since his annual physical in February, according to his doctor.

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Speaker 4: The statement comes after a barrage of questions from reporters

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Speaker 4: about White House visitor showing a neurologist and Parkinson's specialist

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Speaker 4: visited the White House eight times over the past year.

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Speaker 4: Here's Press Secretary Karine Jean Pierre's response.

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Speaker 5: Has the President been treated for Parkinson's?

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Speaker 2: No?

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Speaker 5: Is he being treated for Parkinson's, No, he's not. Is

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Speaker 5: he taking medication for Parkinson's No. So those are the

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Speaker 5: things that I can give you full blown answers on,

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Speaker 5: but I'm not going to do I'm not going to

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Speaker 5: confirm a specialist, any specialist that comes to the whales

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Speaker 5: Oudam Brokers.

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Speaker 4: Champierre also said there are no plans for Biden to

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Speaker 4: take another annual physical until after November's election. The questions

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Speaker 4: dominated Monday's press briefing and a sign of how big

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Speaker 4: an impact Biden's stilted debate performance has had on his

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Speaker 4: hopes of retaining the White House. At least nine House

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Speaker 4: members have now called for Biden's step aside, and the

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Speaker 4: House Democratic Caucus will meet Tuesday morning, which could lead

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Speaker 4: to more defections.

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Speaker 2: Doubts over the US president's future are threatening to overshadow

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Speaker 2: the NATO summit that begins today in Washington. Biden is

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Speaker 2: hosting the gathering, but other leaders, including Immanuel Macon and

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Speaker 2: Olaf Schultz, are also facing pressure after recent elections in

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Speaker 2: their countries. Support for Ukraine is a key issue on

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Speaker 2: the agenda for the leaders. Former Ukrainian President Petro Poroshenko

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Speaker 2: has urged the allies not to delay further help.

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Speaker 6: Don't trust put you and I know it from my

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Speaker 6: own experience. This is message for me to the Abtempt

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Speaker 6: to delay the launching of negotiation with Ukraine is very dangerous.

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Speaker 2: Petro Poroshenko, speaking there following Monday's Russian missile strike on

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Speaker 2: a children's hospital in Kiev. The current president, Vlodomi Zelenski,

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Speaker 2: has also called forgear greater resolve from allies in the

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Speaker 2: wake of the attacks. NATO has agreed to spend at

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Speaker 2: least forty billion euros per year on military aid for Ukraine,

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Speaker 2: but with the caveat that the target will be reviewed

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Speaker 2: next year.

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Speaker 4: The Rstiush Prime Minister Krista is one of the leaders

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Speaker 4: traveling to NATO on his fifth day in the job.

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Speaker 4: The UK is one of NATO's biggest spenders and Starmar's

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Speaker 4: new government wants to take a key role on the

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Speaker 4: world stage. Bloomberg James Wilcock has more.

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Speaker 7: When Kis Starmer won government in a landslide last week,

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Speaker 7: he made the traditional international call fornturiously. We will see

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Speaker 7: each other next week I'm very much looking forward to

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Speaker 7: seeing you.

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Speaker 8: In Washington, then having the opportunity obviously to sit down

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Speaker 8: properly part.

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Speaker 3: Clear oursure relationship. We're working together issue supporting Ukraine, managing

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Speaker 3: an a cappelitation on cha Benki cooperation, never for shipping.

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Speaker 7: Gramarcas Starmer there talking to US President Joe Biden. Bgial

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Speaker 7: lyders often try and catch a bit of American stardust,

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Speaker 7: but this time it may be Starma, the progressive politician

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Speaker 7: with a large stable majority who is in demand at

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Speaker 7: the NATO summit. Yet the labor leader's political hymoon may

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Speaker 7: prove short lived, as key allies see big shifts towards

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Speaker 7: the right in coming months. With the specter of a

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Speaker 7: Donald Trump presidency looming in London, James Wilcock Bloomberg Radio.

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Speaker 2: Political shock in France is forcing bond investors to confront

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Speaker 2: the country's fiscal deficit. President Macrol's decision to call a

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Speaker 2: snap election led the gap between French and German bond

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Speaker 2: yields to widen, the most since the sovereign debt crisis

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Speaker 2: in Europe. Now, a hung parliament threatens to hinder any

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Speaker 2: new government's ability to drive economic reforms. Ludwig Subra, chief

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Speaker 2: economist that Alian, says a coalition could complicate policy.

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Speaker 9: The Left electoral alliance has now to ask really who

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Speaker 9: they want to put forward as prime minister, the nominee,

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Speaker 9: and then see how this person can work with the

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Speaker 9: Macon's party in the parliament right. And so that really

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Speaker 9: means certainly an infection of policies, but also a big

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Speaker 9: sense still when it comes to big moves reforms, and

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Speaker 9: also certainly to constantly take our fiscal deficits.

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Speaker 2: Ludwig Supra from ALIAS speaking there, prior to the parliamentary elections,

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Speaker 2: France had already been admonished by the EU for breaking

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Speaker 2: the blog's fiscal rules with the size of its budget deficit.

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Speaker 4: Morgan Stanley's tf US equity strategist Mike Wilson has warned

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Speaker 4: of a stock market correction of ten percent between now

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Speaker 4: and the US presidential election as highly likely as the

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Speaker 4: S and P five hundreds opened the week at all

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Speaker 4: time high, as Wilson told Bloomberg that traders should brace

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Speaker 4: for a pullback.

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Speaker 10: I think the chance of a ten percent correction is

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Speaker 10: highly likely sometime between now and the election, not just

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Speaker 10: because of the election, but because uncertainty is going to

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Speaker 10: prevail for a lot of different reasons. Ernie's reasons, you know,

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Speaker 10: election outcome reasons, some of the things you mentioned earlier

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Speaker 10: on terrors, potentially immigration fed policy still remains uncertain. So yeah,

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Speaker 10: I think the third quarter typically is that period and

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Speaker 10: it's going to be trapping.

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Speaker 3: Morgan Stanley's Mike Wilson.

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Speaker 4: There, he joins a rising number of Wall Street pros

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Speaker 4: who are growing more cautious going into the third quarter,

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Speaker 4: a seasonally turbulent period, particularly amid signs the US stock

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Speaker 4: rat is overheating.

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Speaker 2: Jurors in the eight week fraud trial of Bill Wong,

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Speaker 2: the founder of our Chiegos Capital Management, are expected to

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Speaker 2: begin deliberations on a verdict today. Bloomberg's Doug Krisner reports.

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Speaker 8: The case of our Chago's Capital Management and its inability

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Speaker 8: to meet billions of dollars in margin calls ensnared half

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Speaker 8: of Wall Street and it cost banks ten billion dollars.

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Speaker 8: Wang is charged with eleven counts, including fraud and market manipulation. Yesterday,

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Speaker 8: in closing remarks, Wang's lawyer said the government's case makes

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Speaker 8: no sense because prosecutors failed to show how Wang planned

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Speaker 8: to realize a windfall from the alleged scheme. In his closing,

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Speaker 8: the prosecutor peppered his arguments with metaphors to show how

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Speaker 8: Wang cared about moving stock prices, not acquiring stock in

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Speaker 8: New York. I'm Doug Prisner, Bloomberg Radio.

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Speaker 3: Well, let's go back to the latest from US politics.

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Speaker 2: Now.

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Speaker 4: President Joe Biden's doctor says that the President hasn't undergone

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Speaker 4: any special neurological testing since its annual physical in February.

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Speaker 4: This amid questions by the frequent visits to the White

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Speaker 4: House of a Parkinson's specialist and mounting concern about Democratic

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Speaker 4: Party and donors about Biden's re election campaign. Bomber TV

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Speaker 4: anchor Crity Goop does with us for more on this story. Critty,

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Speaker 4: good morning. Why is there this speculation now? If you

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Speaker 4: can just bring us up to speed about the US

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Speaker 4: president and Parkinson's disease.

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Speaker 1: So this has been in the water for a little

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Speaker 1: bit now, and early Simes dementia Alzheimer's were floated by

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Speaker 1: the media and by some of his critics as well,

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Speaker 1: So this isn't necessarily new. I think what's new is

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Speaker 1: the fact that this visitor log does in be effect

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Speaker 1: show that despite and I believe you played the SOT

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Speaker 1: at the beginning of the Press secretary saying that he

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Speaker 1: has not been consulted for it, the visitor logs do

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Speaker 1: indeed show that the White House doctor has had that

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Speaker 1: visit from the Parkinson's specialist, and so for that reason,

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Speaker 1: the media has of course circulated that this may be

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Speaker 1: a possibility. But that's where it's coming from. There still

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Speaker 1: hasn't been much clarity on what that Parkinson specialist was

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Speaker 1: doing or if it was even related to to President

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Speaker 1: Biden as opposed to other members of the staff or

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Speaker 1: the family.

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Speaker 2: Yeah. What Meanwhile, wealthy donors saying always important of we

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Speaker 2: see in the US electoral system.

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Speaker 1: They are concerned, and I believe there was a groups

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Speaker 1: of reporting I think, I want to say coming out

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Speaker 1: of Axios that is talking about the likes of Larry Fink,

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Speaker 1: for example, the head of Centerview Partners for example, banding

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Speaker 1: together and saying, is this really one where we want

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Speaker 1: to put our money? And remember they're going up against

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Speaker 1: some of the several billionaires who've backed President Trump as well.

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Speaker 1: Steve Schwartzman is a great example of that. But they

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Speaker 1: are concerned about whether that pool of money should indeed

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Speaker 1: be behind President Biden or an alternate Canada.

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Speaker 3: And they're simply meeting.

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Speaker 1: No major decisions have been made yet, no major kind

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Speaker 1: of funding poll, but simply the fact that those conversations

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Speaker 1: are being had by some of Wall Street's biggest names

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Speaker 1: is fairly notable.

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Speaker 3: Christy.

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Speaker 4: One of the next steps in this story, there's a

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Speaker 4: meeting of the House Democratic Caucus today.

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Speaker 3: What should be watching out for.

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Speaker 1: Well, there's a lot going on over the next few days,

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Speaker 1: and the big one is going to be on July eleventh.

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Speaker 1: That's when the DNC platform committed. He meets in particular,

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Speaker 1: and this is where the leadership of the party convention

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Speaker 1: is going to be talking about what those next steps are. Remember,

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Speaker 1: we are counting down the days towards a virtual role

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Speaker 1: call that will basically secure the presumptive nominee.

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Speaker 11: But I think this is important.

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Speaker 1: It's that it's coming just days after President Biden, I believe,

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Speaker 1: in the last twenty four hours, released a letter to

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Speaker 1: his own party, a very public letter as well, outlining

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Speaker 1: only his policies, but making some very start comments saying

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Speaker 1: that this media speculation and this party speculation of him

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Speaker 1: stepping down needs to stop, and we need to be

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Speaker 1: united to prevent Donald Trump from a two point zero though,

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Speaker 1: was the verbatim from the letter that he circulated. Whether

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Speaker 1: or not that's actually carrying any weight is a big deal,

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Speaker 1: and I should mention the latest I think voice to

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Speaker 1: add to all of this is going to be Bernie Sanders.

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Speaker 1: We know that he of course brings a big voice

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Speaker 1: to the Democratic Party for international audience. He's far more

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Speaker 1: left leaning, very in touch with labor unions, etc. So

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Speaker 1: it has tended from a policy perspective, put a lot

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Speaker 1: of pressure on the Democratic agenda and of course the

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Speaker 1: Biden agenda. Not to mention the Clinton agenda before that.

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Speaker 1: It is important as well, though that he says that

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Speaker 1: the best way to prove cognitive ability is to go

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Speaker 1: out there to meet the people, to do the press tours,

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Speaker 1: et cetera. And you can see just in the last

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Speaker 1: twenty four hours in an unsolicited appearance on epsod BC

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Speaker 1: A followed by what again the campaign is calling aggressive

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Speaker 1: travel schedule to try to make that point.

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Speaker 2: Yeah, absolutely, President Joe Biden's telling MSNBC, I don't care

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Speaker 2: what the millionaires think. You know, who's trying to make

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Speaker 2: the point that he is running. He's not stepping back

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Speaker 2: in any way. Our Tvanka Kritty Gip to thank you

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Speaker 2: so much for being with us this morning when.

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Speaker 3: I made the pressure on President Biden.

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Speaker 4: He's hosting the leaders of thirty one NATO countries for

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Speaker 4: a three day summit in Washington. It's the seventy fifth

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Speaker 4: anniversary of the founding of the alliance amid the war

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Speaker 4: in Ukraine and to push by President Zelenski to obtain

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Speaker 4: more weapons from his allies. Let's bring in our EMA

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Speaker 4: and News director Rosalind Matheson for more ros. NATO seems

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Speaker 4: to be fortifying itself ahead of this summit against the

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Speaker 4: possibility of Donald Trump returning to the White House in November.

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Speaker 11: Well, that's right.

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Speaker 12: So this NATO's summit this week is a chance really

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Speaker 12: for NATO to reset itself a bit, to present this

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Speaker 12: idea of the alliance that is as strong and relevant as.

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Speaker 11: It was decades ago.

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Speaker 12: But you know, as Kritty was just pointing out, we've

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Speaker 12: got questions about, you know, the destructions around some of

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Speaker 12: the individual leaders. We've got real questions about what happens

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Speaker 12: to NATO after the US election in November. In the

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Speaker 12: event of a second Donald Trump presidency, because, as you

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Speaker 12: were saying, Donald Trump has been very dismissive of NATO.

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Speaker 11: He's been very dismissive. Also we continued.

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Speaker 12: Aid to Ukraine, and he's talked about, you know, the

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Speaker 12: US wouldn't actually defend certain member states within NATO unless

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Speaker 12: they're pulling their weight financially, which goes against the very core.

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Speaker 11: Of NATO, which is collective defense.

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Speaker 12: Does that mean that NATO really is fragmented and falls apart?

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Speaker 12: So there are fundamental questions about what the future US

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Speaker 12: involvement might be in NATO and what NATO might look

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Speaker 12: like in the coming years and decades. And against that backdrop,

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Speaker 12: of course of the US election campaign, which is really

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Speaker 12: threatening to kind of drive the narrative around this meeting

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Speaker 12: versus the broader questions around things like Ukraine and China.

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Speaker 2: Yeah, absolutely, what happens to Ukraine then, and if that

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Speaker 2: is going to be the main focus of the summit today.

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Speaker 12: Well, I guess what President means Zlensky is looking for,

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Speaker 12: at least from the NATO summit is a proper pledge

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Speaker 12: that Ukraine can join NATO in a formal invitation to

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Speaker 12: join NATO and that's unlikely to come. What we're hearing

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Speaker 12: is there might be some wording around general security guarantees

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Speaker 12: and a future possibility of joining NATO, but not that

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Speaker 12: magic card that Zelinsky is looking for, and he'll be

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Speaker 12: disappointed about that. So there'll be possibly more pledges for

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Speaker 12: long term aid for Ukraine out of this, but not

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Speaker 12: that idea that Ukraine's going to get entree into NATO

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Speaker 12: anytime soon, And of course Ukraine would argue that that's

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Speaker 12: necessary to give it that long time and buffer against Russia.

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Speaker 12: So most of the conversation will be about the wording

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Speaker 12: of how to suggest that Ukraine has a pathway to

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Speaker 12: joining NATO at some point, but not yet that formal invitation.

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Speaker 4: What about the questions or own defense spending rise? Is

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Speaker 4: that going to be an issue that could we could

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Speaker 4: see some progress on.

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Speaker 12: Well, it's interesting because Donald Trump has chat when he

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Speaker 12: was president, did challenge NATO member states saying they weren't

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Speaker 12: contributing enough of their own budgets to their own defense

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Speaker 12: and to the NATO defense, And there he actually did

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Speaker 12: have a point because a lot of countries in Europe

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Speaker 12: have not been meeting those commitments, and some have now

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Speaker 12: increased their defense spending, particularly again after Russia invaded Ukraine.

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Speaker 12: But that's going to be an ongoing question as we

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Speaker 12: look at some of the budgets across Europe in the

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Speaker 12: coming years, and even in the UK we've got Kirstarmer

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Speaker 12: the new leader, so questioning how much the UK can

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Speaker 12: contribute not just for its own defense but also for

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Speaker 12: the collective defense under NATO.

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Speaker 11: There will be further conversation around that.

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Speaker 12: Of course with the recent European parliamentary elections, with the

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Speaker 12: Right having done pretty well in the end in the

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Speaker 12: French election for example. In Germany, yeah, they're going to

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Speaker 12: be willing to continue to allow this kind of defense spending,

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Speaker 12: so big questions.

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Speaker 11: They are also in the ESA for that meeting.

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