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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Amy Morris. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Amy, we begin with two key economic data points that

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Speaker 3: could have a huge impact on trading, and a preview

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Speaker 3: from Bloomberg's Michael McKee.

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Speaker 4: A long day ahead for investors. First up, consumer prices

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Speaker 4: for May. The consensus is for little change to both

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Speaker 4: headline and core, leaving inflation still too high for the

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Speaker 4: Fed to consider cutting rates. This afternoon, the Fed will

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Speaker 4: likely confirm that Central bank policymakers are not going to

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Speaker 4: change policy today. What will matter is what signals they

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Speaker 4: send about when they might move. For that, Wall Street

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Speaker 4: will look to the so called dot plot. Will it

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Speaker 4: suggest one cut this year or two? On such data,

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Speaker 4: markets will move Michael McKee, Bloomberg Radio.

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Speaker 5: Yes, indeed, thank you, Mike. And the economy.

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Speaker 2: Also in folks in Europe this morning, Britain's economic recovery

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Speaker 2: ground to a halt in the run up to the

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Speaker 2: general election. Gross domestic product was flat in April compared

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Speaker 2: to the previous month. What weather contributed to slower retail sales.

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Speaker 2: Manufacturing and construction also fell more sharply than expected.

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Speaker 3: Now we got fresh eco data in Asia as well.

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Speaker 3: Amy China's consumer prices rose in May, holding above zero

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Speaker 3: for a fourth month. Bloomberg Daybreak Asia anchor Brian Curtis

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Speaker 3: has more from Hong Kong.

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Speaker 6: The CPI rows zero point three percent from a year earlier,

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Speaker 6: compared to a forecast of zero point four percent, but

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Speaker 6: deflation persists in wholesale prices, the PPI falling one point

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Speaker 6: four percent from a year earlier. It's the twentieth month

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Speaker 6: in a row that factory gate prices have been negative.

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Speaker 6: Economists had expected a drop of one point five percent.

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Speaker 6: The data have fueled calls for more government action to

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Speaker 6: support demand in Hong Kong. Brian Curtis, Bloomberg Radio.

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Speaker 2: Thank you, Brian, and sticking with China, Bloomberg News has

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Speaker 2: learned the Buy and Administration is considering further restrictions on

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Speaker 2: China's access to chip technology used for artificial intelligence. Sour

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Speaker 2: As to say the administration is targeting new hardware that's

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Speaker 2: only now making its way into the market. The US

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Speaker 2: has already imposed numerous limits on the sale of advanced

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Speaker 2: semiconductors and chip making tools to the acient country.

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Speaker 3: Artificial intelligence AMY has helped fuel Apple to a record

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Speaker 3: close on Wall Street. The shares soared more than seven

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Speaker 3: percent yesterday, adding two hundred and fifteen billion dollars to

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Speaker 3: Apple's market capitalization, made for one of the biggest single

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Speaker 3: day value adds by any company in history. The record

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Speaker 3: came off the back of Apple's annual Worldwide Developers Conference,

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Speaker 3: where it showcased a number of features related to AI.

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Speaker 3: Van Ives is an analystic White Bush Securities.

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Speaker 7: This is going to be an AI brain in your

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Speaker 7: phone that's going to understand the user and the owner

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Speaker 7: of the phone.

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Speaker 5: The more and more that they're together, SOUD.

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Speaker 8: They're going to understand your habits, restaurants.

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Speaker 4: Which people you like to pick up the phone from

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Speaker 4: which you don't, what photos you prioritize over others.

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Speaker 3: Weld Bush's dan Ives has a price target of two

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Speaker 3: undred and seventy five dollars on Apple. Right now, the

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Speaker 3: shares are trading around two oh six, and.

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Speaker 2: Apple shares not the only stock on the move. Shares

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Speaker 2: of Oracle up almost nine percent in early trading after

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Speaker 2: the close yesterday. The company reported better than expected bookings.

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Speaker 2: Bloomberg's Charlie Pellett has the numbers from Oracle's latest earnings report.

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Speaker 9: It suggests continued momentum for the company's effort to compete

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Speaker 9: in cloud computing against its larger tech rivals. Oracle said

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Speaker 9: total remaining performance obligations, a measure of future contracted sales,

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Speaker 9: increased forty four percent to ninety eight billion dollars in

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Speaker 9: the fiscal fourth quarter. Analyst, on average, we're estimating seventy

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Speaker 9: three point nine billion dollars. Oracle also announced a new

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Speaker 9: agreement to make its namesake database available on Google's cloud

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Speaker 9: infrastructure in New York. Charlie Pellet Bloomberg Radio.

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Speaker 3: Okay, Charlie, thank you. Now, let's turn to politics. Former

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Speaker 3: President Donald Trump's influence on the Republican Party was made

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Speaker 3: clear in yesterday's primaries. Republican Maine state lawmaker Austin Terrio,

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Speaker 3: endorsed by Trump, won the chance to try to unseat

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Speaker 3: one of the most conservative Democrats in the House of Representatives.

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Speaker 3: Terrio defeated Mike Sobleski in the Republican primary in a

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Speaker 3: district that was rocked by a mass shooting last year.

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Speaker 3: Terrio will face three term incumbent Democrat Jared Golden And.

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Speaker 2: In South Carolina Representative Nancy Mace, who went from a

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Speaker 2: critic to an ally of Donald Trump, also won her

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Speaker 2: primary with fifty six point eight percent of the vote.

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Speaker 2: Mays had joined seven of the farthest RIDE members to

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Speaker 2: oust former House Speaker Kevin McCarthy. McCarthy endorsed Mace's opponent

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Speaker 2: and donated to a group called South Carolina Patriots Pack,

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Speaker 2: which spent more than two point one million dollars against Mace.

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Speaker 3: And in Nevada, Army veteran Sam Brown won the Republican

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Speaker 3: primary for the US Senate's seat, receiving fifty nine point

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Speaker 3: six percent of the vote. Brown was endorsed by Donald

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Speaker 3: Trump shortly before primary day. He will face Democratic incumbent

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Speaker 3: Jackie Rosen in November. That sets up a fierce battle

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Speaker 3: that could decide control of the Senate. That Nevada seat

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Speaker 3: is rated a toss up by the nonpartisan Cook Political Report.

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Speaker 2: And well, now the presidential race may have just gotten

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Speaker 2: a bit more complicated. The incumbent's son is now a

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Speaker 2: convicted felon Hunter. Biden has been found guilty on three

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Speaker 2: federal accounts for buying a firearm at the time he

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Speaker 2: was using crack cocaine. We get more from Bloomberg Law

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Speaker 2: host June Grosso.

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Speaker 10: The prosecution just presented a mountain of evidence, including hunter

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Speaker 10: Biden's own words in his memoir, including testimony from his

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Speaker 10: ex wife and ex lovers.

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Speaker 2: Bloomberg's June Grosso knows Hunter Biden chose not to take

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Speaker 2: the stand in his own defense. As for the political impact,

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Speaker 2: to Bloomberg Politics contributor Genie Sheenzano says, that's still not clear.

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Speaker 7: We have seen some polling on this.

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Speaker 1: For instance, Emerson did a poll and they found, similar

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Speaker 1: to the reaction to Trump's conviction, that about six or

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Speaker 1: seven out of ten American voters said it wouldn't impact

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Speaker 1: their vote whatsoever. But that left about a quarter of

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Speaker 1: Americans saying it might impact them, and in this case,

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Speaker 1: about eleven percent of those were Democrats.

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Speaker 2: Bloomberg Politics contributor Genie she and Zano says Hunter Biden

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Speaker 2: is facing another trial on tax charges even closer to

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Speaker 2: the November election.

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Speaker 3: As for the presidential race, amy a new poll done

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Speaker 3: by the Pew Research Center says the world has more

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Speaker 3: confidence in President Biden than it does in former President Trump.

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Speaker 3: Bloomberg Zaed Baxter has the numbers.

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Speaker 8: Pugh says, this is a poll done in thirty four countries.

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Speaker 8: It found a median of forty three percent saying they

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Speaker 8: trust Biden to do the right thing in world affairs,

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Speaker 8: compared to twenty eight percent from Trump. People had more

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Speaker 8: positive assessment of Biden than Trump in twenty four countries,

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Speaker 8: while Trump led in Hungary and Tunisia, and the two

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Speaker 8: were effectively tired in eight others. But this comes as

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Speaker 8: well at a time when global faith in US democracy

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Speaker 8: is waning. A median four and ten told posters at

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Speaker 8: democracy used to be a good example for other countries

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Speaker 8: to follow, but that it no longer is. Ed Baxter Bloomberg.

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Speaker 5: Radio, thank you, ed.

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Speaker 2: Time out for a look at some of the other

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Speaker 2: stories making news in New York and around the world,

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Speaker 2: and for that we're joined by Bloomberg's Michael Bard.

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Speaker 11: Good morning, Michael, Good morning, Amy. The Full House will

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Speaker 11: vote today on whether to hold Attorney General Merrick Garland

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Speaker 11: in contempt of Congress. House Republicans had been demanding that

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Speaker 11: the Justice Department turnover audio recordings of President Biden's interview

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Speaker 11: with Special Counsel Robert hurb. The interview was part of

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Speaker 11: HER's investigation of classified documents found in Biden's home and office.

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Speaker 11: Garland has provided a transcript of the full interview, but

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Speaker 11: not the audio. Some Republicans believe the transcript differs from

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Speaker 11: the recording. Democrats say Republicans just want the audio to

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Speaker 11: use an anti Biden ads. Atlanta police have arrested a

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Speaker 11: suspect in the deadly hijacking of a bus. Police responded

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Speaker 11: to a report of gunfire on a bus and a

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Speaker 11: possible hostage situation. When police arrived, pursued ensued over two counties.

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Speaker 11: Seventeen people, including the driver, were on the bus. A

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Speaker 11: victim with the gunshot wound later died at the hospital.

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Speaker 11: Atlanta Mayor Andre dickens this individual has held someone to

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Speaker 11: a driver at gunpoint across multiple jurisdictions. The suspect with

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Speaker 11: multiple arrests, a thirty nine year old man from Stone Mountain,

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Speaker 11: was arrested as the bus was disabled by a swat vehicle.

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Speaker 11: Hamas says it has given a Katari and Egyptian mediators

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Speaker 11: its reply to the US backed proposal for a ceasefire

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Speaker 11: in Gaza, seeking some amendments on the deal. Hamas and

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Speaker 11: the smaller Islamic g militant group said they were ready

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Speaker 11: to deal positively to arrive at an agreement and that

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Speaker 11: their priority is to bring a complete stop to the war.

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Speaker 11: The foreign ministries of Cutter in Egypt and White House

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Speaker 11: officials were examining the response. The care of migrant children

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Speaker 11: is drawing concern from those on Capitol Hill. Bloomberg's Nancy

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Speaker 11: lyons reports.

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Speaker 12: By partisan duo of senators is launching an investigation into

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Speaker 12: the care of migrant children being held in federal facilities.

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Speaker 12: Senators John Ossoff, a Democrat, and Marsha Blackburn, a Republican,

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Speaker 12: are concerned about reports they've received of dangerous conditions for

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Speaker 12: children being held by US Customs and Border Protection while

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Speaker 12: they await processing at the border. The two are asking

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Speaker 12: Homeland Security Secretary Alejandro new york Is to report back

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Speaker 12: on facility conditions and protections against labor and sex trafficking

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Speaker 12: in Washington. Nancy lyons Bloomberg Radio Global.

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Speaker 11: News twenty four hours a day and whenever you want

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Speaker 11: it with Bloomberg News Now. I'm Michael Barr, and this

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Speaker 11: is Bloomberg Amy.

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

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Speaker 2: Sports update, and for that we bring in John stash Houer.

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Speaker 5: Good morning John, Good morning, Amy.

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Speaker 13: And the Yankees are rolling season high twenty seven games

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Speaker 13: over five hundred. They're twenty six and eleven on the road.

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Speaker 13: They're sixteen and one versus the Al Central. A ten

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Speaker 13: to one route in Kansas City, Austin Wells built at

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Speaker 13: a three run homer and then in the seventh to

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Speaker 13: night home runs for both Aaron Judge and John Carlos Stanton.

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Speaker 13: Judges traveled four hundred and thirty six feet landed in

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Speaker 13: the fountain and then Stanton's win ten feet longer. Yanks

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Speaker 13: for thirty nine and four in their history, win both

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Speaker 13: of homeward in the same game. Only problem with the

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Speaker 13: Thanks right now is Anthony Rizzo. He's one for thirty

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Speaker 13: three in June. Also, the Orioles remain right on the Yankees.

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Speaker 5: Heels.

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Speaker 13: Baltimore shut out Atlanta four nothing, only two and a

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Speaker 13: half games behind the Mets back home a couple of

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Speaker 13: costs of the errors.

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Speaker 5: A four to two loss to the Marlins.

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Speaker 13: Philly has got two home runs from Kyle Schwarber beat

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Speaker 13: the Red Sox four to one. The National has won

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Speaker 13: tie four in Detroit. When last season ended Aaron Rodgers.

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Speaker 13: It only took four snaps all year, so the Jets

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Speaker 13: need a more winning attitude. And then the star quarterback

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Speaker 13: didn't show up for the start of a mandatory offseason

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Speaker 13: mini camp.

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Speaker 5: The Jets coach is Robert Salmon.

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Speaker 14: Aaron and I spoke before OTIA started. He's been very

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Speaker 14: good in communication. He's been here the entire time. It's inexcused,

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Speaker 14: but he had an event that was very important to him,

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Speaker 14: which he communicated.

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Speaker 13: Son Reddick, the past rusher the Jets squad from Philadelphia,

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Speaker 13: also a no show. He's looking for a new contract.

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Speaker 13: Both Rogers and Reddick will get fined. The NBA Finals

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Speaker 13: Game three tonight in Dallas. The Celtics are up two.

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Speaker 13: Nothing may not have Christaph Porzingis. He missed five weeks

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Speaker 13: of the playoffs with an injury to his right leg.

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Speaker 13: You know there's an issue with his left one. US

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Speaker 13: opened teas off tomorrow without John ram He withdrew with

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Speaker 13: a foot injury. Ramow on the Live Tour did not

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Speaker 13: play well in the first two majors. Recently missed a

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Speaker 13: cut at the PGA. John Stashewack Bloomberg Sports, Jami and Nedan.

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Speaker 15: Coast to coast on Bloomberg Radio, wide on Sirius XM,

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Speaker 15: and around the world on Bloomberg dot Com and the

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Speaker 15: Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm

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Speaker 15: Nathan Hagar. A busy Wednesday has finally arrived.

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Speaker 3: In just a couple of hours, we get a final

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Speaker 3: read on inflation and make consumer prices before the Federal

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Speaker 3: Reserve issues a policy decision for the month of June

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Speaker 3: later this afternoon, the event investors have been waiting for

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Speaker 3: all week ahead of it. We are joined now by

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Speaker 3: Yolena Shilyatchev, a senior US economist at BNP Pariba. Yolena,

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Speaker 3: Happy double whammy Wednesday. Let's start with what's coming first

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Speaker 3: to the consumer price read. Are we back on the

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Speaker 3: cooling inflationary trend?

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Speaker 7: I think we are on a gredule cooling trend for inflation,

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Speaker 7: But is it really good enough for the fit to,

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Speaker 7: you know, to start discussing at the start of the

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Speaker 7: cutting cycle. I think they're carefully watching, but what they

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Speaker 7: need to do is to really gain enough confidence that

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Speaker 7: inflation is on the right path. And I think today's

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Speaker 7: number will just be one of you know, three readings

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Speaker 7: that they will need to see at least three readings

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Speaker 7: that they need to see to gain such confidence if

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Speaker 7: it's on the right path.

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Speaker 3: What do you see coming out of today's CPI print

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Speaker 3: that could give the Fed that kind of confidence that

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Speaker 3: inflation's back on the right path.

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Speaker 7: I mean, we had zero zero point three percent on

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Speaker 7: core inflation, and that's a good number, but the key

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Speaker 7: point here is that it's just one of a few

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Speaker 7: and they will need to see more from that. I think,

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Speaker 7: you know, inflation is on the right path. Maybe we're

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Speaker 7: not going to see too much desinflation or deflation from

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Speaker 7: the good sector anymore. So we really really need to

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Speaker 7: see that services sector starting to engage in the disinflationary trend.

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Speaker 7: So that's what we're looking for, you know, in a

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Speaker 7: few key services sectors.

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Speaker 3: Do you see this CPI data having any impact on

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Speaker 3: what the Fed produces when it comes to the Summary

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Speaker 3: of Economic Projections the dots?

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Speaker 7: I think the Summary of Economic Projections will will be

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Speaker 7: upgraded to show core inflation at two point eight percent

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Speaker 7: for the year as a whole. So you know, the

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Speaker 7: first quarter of the year was definitely higher than the

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Speaker 7: Fed expected, so they just really need to mark to

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Speaker 7: market for that, but I think that as the year progresses,

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Speaker 7: we will see a little bit more of this inflation,

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Speaker 7: which will allow the FED to start cutting rates by

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Speaker 7: the end of the year.

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Speaker 3: When do you think we see that first cut. I mean,

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Speaker 3: we've only got a few meetings left before the end

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Speaker 3: of the year.

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Speaker 7: We are projecting the first rate cut in December, and

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Speaker 7: the economy may get to the point at which it

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Speaker 7: will probably allow the first rate cut to happen in September.

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Speaker 7: But I think that that election really matters here. The

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Speaker 7: Fed will be faced with too many different scenarios of

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Speaker 7: how the economy will evolve in twenty twenty five, so

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Speaker 7: for them to choose which way it will go, it

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Speaker 7: will really require a little bit more clarity on the

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Speaker 7: path for fiscal policy. For other important policies such as

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Speaker 7: immigration and tax policy and so on and so forth,

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Speaker 7: I think the Fed will be patient to wait until

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Speaker 7: they get such clarity after the election.

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