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Speaker 1: Good morning.

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Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 2: stories we're following today.

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Speaker 1: We begin with the fallout from the final decisions of

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Speaker 1: the Supreme Court's term. President Biden is dealing with divided

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Speaker 1: public opinion over the High Court ending affirmative action and

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Speaker 1: college admissions. About half of Americans telling ABC News ipsos

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Speaker 1: Paul they support the ruling, while about a third disapproved.

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Speaker 1: Former Vice President Mike Pince is among Republicans celebrating the decision.

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Speaker 3: There may have been a time when affirmative action was

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Speaker 3: necessary simply to open the doors of all of our

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Speaker 3: schools and universities, but I think that time has passed

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Speaker 3: and we'll continue to move forward as a colorblind society.

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Speaker 1: The High Court also rejected President Biden's student loan relief

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Speaker 1: plan and allowed a constitutional exception to anti discrimination laws,

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Speaker 1: and its final decisions of the term that raises a

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Speaker 1: fundamental question for Transportation Secretary Pete Boodagen.

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Speaker 4: Did we just live to see the high water mark

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Speaker 4: of freedom's and rights in this country before they were

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Speaker 4: gradually taken away?

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Speaker 1: Secretary Budhaja Jan former Vice President Pence, where guests on

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Speaker 1: Face the Nation from CBS, which you can hear every

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Speaker 1: Sunday right here on Bloomberg Radio.

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Speaker 2: Meantime, Nathan relations with China are also front and center

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Speaker 2: in Washington. Treasury Secretary Janet Yellen travels to Beijing on Thursday,

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Speaker 2: and it tends to stay through the weekend, ending months

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Speaker 2: of speculation as to when she would visit. Bloomberg Stephen

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Speaker 2: Engel and Beijing, says Yellen will need to address comments

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Speaker 2: she's made about the economic relationship between the two nations.

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Speaker 5: It was Jannet Yellen who has been talking a lot

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Speaker 5: about de risking from the China supply chain. She's talked

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Speaker 5: about friend shoring and moving some supply chain resilience to

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Speaker 5: other nations, including Japan. In fact, in April, Jannet Yellen

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Speaker 5: had a sharply worded speech where she did again reaffirm

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Speaker 5: that they are not trying to decouple from China, but

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Speaker 5: did admit that the United States might have to accept

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Speaker 5: some sort of economic costs by sort of de risking

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Speaker 5: from the China, you know, supply chain. And so again

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Speaker 5: this will be a critical meeting because she's going to

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Speaker 5: be meeting the new leadership team.

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Speaker 2: And Bloomberg Stephen Engel notes Janet Yellen is the second

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Speaker 2: member of President Biden's cabinet to visit China in recent weeks.

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Speaker 1: And that visit Karen comms. As President Biden gears up

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Speaker 1: for his own overseas trip, the White House announced the

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Speaker 1: President will head to Lithuania next Sunday for the seventy

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Speaker 1: fourth NATO Summit. He will aim to short ties with

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Speaker 1: allies against the backdrop of a recent failed mutiny in Russia.

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Speaker 1: All the while Poland is increasing its defensive presence on

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Speaker 1: its border with Russia. There are reports the Wagner Mercenary group,

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Speaker 1: which sparked on mutiny, may be regrouping in Belarus.

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Speaker 2: Well elsewhere in Europe, Nathan civil unrest is making major waves.

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Speaker 2: In France, tensions are easing a bid after a week

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Speaker 2: of nationwide riots touched off by the fatal police shooting

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Speaker 2: of a teenager Bloomberg's Caroline Connan and Paris says President

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Speaker 2: Emanuel mccron is meeting with cabinet members and local leaders

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Speaker 2: in response to the violence.

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Speaker 6: He had to console his big Fish state visit to Germany.

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Speaker 6: He also came back from the EU summit early on Friday,

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Speaker 6: and of course this is very bad for the image

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Speaker 6: of funds because we were just getting away from all

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Speaker 6: the protests we saw earlier this year against the pension reform.

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Speaker 6: Now you have these riots. It's also the beginning of

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Speaker 6: the tourist season, infants.

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Speaker 2: And Bloomberg's Caroline conn And says arrests are slowing. They're

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Speaker 2: down to about one hundred and sixty so far today.

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Speaker 2: That compares to seven hundred the previous night and thirteen

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Speaker 2: hundred the night before that.

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Speaker 1: Returning to Wall Street, now, Karen, we have some big

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Speaker 1: news out of the tech sector this morning. We are

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Speaker 1: watching shares of Tesla. They are hired by six percent

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Speaker 1: in the pre market. That's after the electric vehicle company

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Speaker 1: were delivered a record four hundred and sixty six thousand

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Speaker 1: vehicles in the second quarter. Bloomberg's Charlie Pellett has the details.

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Speaker 1: The deliveries are the most ever in a quarter for

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Speaker 1: Austin based Tesla and an eighty three percent increase from

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Speaker 1: a year ago. The results demonstrate that CEO Elon Musk's

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Speaker 1: vowed to chase volume by cutting price have had their

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Speaker 1: intended effect. The company also managed to trim the gap

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Speaker 1: between production and deliveries a number closely watched by analysts

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Speaker 1: to thirteen thousand, five hundred and sixty units in the

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Speaker 1: second quarter. In New York, Charlie Public Bloomberg Daybreak, Right, Arnlie.

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Speaker 5: Thanks well.

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Speaker 2: Apple's also in the news this morning. According to the

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Speaker 2: Financial Times, Apple is slashing production targets for its Vision

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Speaker 2: Pro headset. It comes as manufacturers struggle with the device's

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Speaker 2: complex design. Apple suppliers are reportedly being asked for components

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Speaker 2: to make just one hundred and fifty thousand headsets in

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Speaker 2: the first year. It also looks like plans for a

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Speaker 2: cheaper version of the headsetter being pushed back, and right now,

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Speaker 2: shares of Apple they are pretty much little change in

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Speaker 2: the pre market.

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Speaker 1: As for the broader market, Karen, Today marks the first

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Speaker 1: day of the second half of the trading year, and

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Speaker 1: the Nasdaq is up almost thirty nine percent, but Bloomberg

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Speaker 1: Chief US economist Stana wongsa has a second half slowdown

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Speaker 1: is still expected thanks to tightening from the Fed.

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Speaker 7: I think a recession is going to happen because there's

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Speaker 7: five hundred bits of rate hike in the pipeline, and

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Speaker 7: there's another twenty five bits likely coming in July. So

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Speaker 7: in the second half of this year, You're going to

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Speaker 7: have five hundred and twenty five bits rate hike in

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Speaker 7: the pipeline, so that should be sufficient to push the

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Speaker 7: economy into your session.

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Speaker 1: Bloomberg Xanda Loong says the next clues on FED policy

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Speaker 1: likely come on Wednesday, when we get minutes from the

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Speaker 1: fomc's June meeting. Time now to take a look at

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Speaker 1: some of the other stories making news in New York

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Speaker 1: and around the world. For that, we are joined by

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Speaker 1: Bloomberg's Michael bar Good morning, Michael.

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Speaker 8: Good morning, Nathan. More than five thousand flights were delayed

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Speaker 8: or canceled across the country Sunday as air travel woes continue.

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Speaker 8: Transportation Secretary Pete Boudage spoke on CBS has faced the

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Speaker 8: nation on Friday.

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Speaker 4: We saw, according to TSA, a record number of airline passengers,

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Speaker 4: probably the most ever in America, and we saw those

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Speaker 4: cancelation rates stay low right now, we're below two percent,

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Speaker 4: but they really shot up at the first part of

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Speaker 4: the week, largely because of severe weather hitting some of

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Speaker 4: our key hubs.

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Speaker 8: Secretary Buddhagicht says the FAA plans to hire more air

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Speaker 8: traffic controllers CBS has faced the nation aires every Sunday

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Speaker 8: on Bloomberg, New York City Mayor Eric Adams says the

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Speaker 8: Supreme Court's recent decision to strike down affirmative action as

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Speaker 8: effectively undoing all of our rights. Adam spoke on a

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Speaker 8: panel featuring black mayors at the Global Black Economic Forum

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Speaker 8: in New Orleans. The mayor also says homelessness and the

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Speaker 8: asylum crisis are two of the biggest issues threatening not

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Speaker 8: only New York but all of America.

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Speaker 9: All mayors must come up with a clear urban agenda

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Speaker 9: on how do we ensure the resources that are coming

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Speaker 9: to the state find their way into the cities. That's

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Speaker 9: so important, this a migrant asylum seeker issue. Every mayor

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Speaker 9: should lift his voice.

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Speaker 8: Audio courtesy of ABC seven. Mayor Adams was on a

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Speaker 8: panel joined by the mayors of Los Angeles, Atlanta, Cleveland,

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Speaker 8: and New Orleans. Hunt continues for at least two shooters

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Speaker 8: believed to have unleashed a barrage of bullets at the

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Speaker 8: Baltimore block party over the weekend. Police say the gunman

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Speaker 8: shop thirty people, nearly half of them children. Two of

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Speaker 8: them died, including a teenager. Baltimore Mayor Brandon Scott.

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Speaker 9: We will not stop until we find those cowers who

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Speaker 9: decided to just shoot dozens of people, causing two people

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Speaker 9: to lose their lives.

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Speaker 8: Mayor Scott says there is now an eight thousand dollars

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Speaker 8: reward being offered by police to find the people responsible

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Speaker 8: for the shooting. Israeli drones have struck targets and a

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Speaker 8: stronghold of militants in the occupied West Bank, and hundreds

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Speaker 8: of troops are deployed in the area. Palestinian health officials

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Speaker 8: sat today at least five Palestinians were killed and twenty

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Speaker 8: seven injured. It came at a time of growing domestic

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Speaker 8: pressure for a tough response to a series of attacks

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Speaker 8: on Israeli settlers, including one last week that killed four people.

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Speaker 8: Global News twenty four hours a day, powered by more

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Speaker 8: than twenty seven hundred journalist and analysts and over one

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Speaker 8: hundred twenty countries. I'm Michael Bard. This is Bloomberg. Nathan.

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Speaker 1: Okay, Michael, thank you time now for the Bloomberg Sports update.

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Speaker 1: For that we bring in Dan Schwartzman.

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Speaker 10: Good morning, Nathan. The Mets dominating the San Francisco Giants

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Speaker 10: eight to Ford City Field.

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Speaker 11: Universas name West.

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Speaker 4: Center Field Raise for the Derby, two munch On Alonso

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Speaker 4: and hate.

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Speaker 10: No Outter that's courtesy of ESPN Grand Hardware picking up

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Speaker 10: the win for New York while ped Alonzo belts his

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Speaker 10: twenty fifth home run this season. The Mets opening up

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Speaker 10: a three game series versus the Diamondbacks in Arizona starting

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Speaker 10: on Tuesday. Peed Alonzo has been named to his third

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Speaker 10: All Star Game, being the Mets lone representative in Seattle.

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Speaker 10: Alonzo also committing to competing in the Home Run Derby

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Speaker 10: on July tenth, as he's won the event twice back

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Speaker 10: in twenty nineteen. In twenty twenty one, the Yankees lose

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Speaker 10: the final game of their three game series in Saint

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Speaker 10: Louis as former Yankee Jorn Montgomery pitches the Cardinals to

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Speaker 10: a five to one win. New York opens up a

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Speaker 10: four game set versus Uriels tonight in the Bronx as

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Speaker 10: Di Mingo herband takes them out for the first time

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Speaker 10: since this perfect game while the Oriols are countering with

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Speaker 10: Tyler Wells. Meanwhile, Garret Cole has been named the All

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Speaker 10: Star Team for the third traite time as a Yankee

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Speaker 10: and six time overall in the NBA. The Brooklyn Nets

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Speaker 10: and guard Lonnie Walker, evergreed toil one year contract last

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Speaker 10: season with the Los Angeles Lakers. Walker ravage close to

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Speaker 10: twelve points per game while shooting over thirty six percent

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Speaker 10: from three point land On Dan Schwartzmith Bloomberg Sports.

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Speaker 12: From coast to coast, from New York to San Francisco,

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Speaker 12: Boston to Washington, DC, nationwide on syriasxam, the Bloomberg Business

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Speaker 12: app in Bloomberg dot com. This is Bloomberg Daybreak. Good morning,

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Speaker 12: I'm Nathan Hager.

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Speaker 1: Well stocks have defied many in analysts' expectations in the

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Speaker 1: first half of twenty twenty three, despite hawkish central banks

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Speaker 1: and expectations of an economic slow down. The S and

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Speaker 1: P five hundred has gained sixteen percent since the start

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Speaker 1: of this year. The tech having Nasdaq is up nearly

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Speaker 1: thirty nine percent. Can this market continue to power through

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Speaker 1: into the rest of the year. Let's bring in someone

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Speaker 1: who's been following the markets for decades as we kick

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Speaker 1: off the second half of trading year twenty twenty three.

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Speaker 1: We are joined by Dennis Gartman, former publisher of The

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Speaker 1: Garment Letter, now chairman of the University of Akron Endowment

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Speaker 1: Investment Committee. Dennis, it's good to speak with you on

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Speaker 1: the kickoff of the second half, but of course it

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Speaker 1: has been very tough to be a bear in this market.

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Speaker 1: Where do you see the momentum heading into the second half.

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Speaker 11: The momentum obviously has been to the upside. It has

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Speaker 11: shocked me something fierce. It's been impressive. But I have

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Speaker 11: to think that we're getting close to a peak. One

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Speaker 11: would have to think. I mean the fact that the

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Speaker 11: CNN there in greed index is at eighty three, which

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Speaker 11: I have not seen at that high in years. The

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Speaker 11: fact that the eel curves is inverted as it has

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Speaker 11: been and is getting worse. What twos and tens are

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Speaker 11: now one seven, one eight, seven hundred and eight basis points,

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Speaker 11: which is historically I should I shouldn't say unprecedented, but

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Speaker 11: certainly hasn't been precedented many times in the past. The

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Speaker 11: public is involved in the market, no question. I think

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Speaker 11: that things are extremely expensive, and the fact that you

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Speaker 11: can get almost five and a half percent for a

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Speaker 11: one year T bill almost what four nine four two

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Speaker 11: or so four nunty three for a two year yield

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Speaker 11: on a two year note those seem to me to

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Speaker 11: be a better place to be involved. But I have

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Speaker 11: been surprised by the fact that we have been as

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Speaker 11: as strong as it has been. It has shocked me

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Speaker 11: something fierce, and I have to think that we're getting

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Speaker 11: close to a peak. But time shall tell. This is

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Speaker 11: the first day of the open of the month, first

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Speaker 11: day of the quarter, first day of the half year,

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Speaker 11: and there's always an inflow, an influx of money coming

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Speaker 11: in on the first day, so today will probably be higher.

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Speaker 11: But I've got to think if you, if you have

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Speaker 11: a chance to take profits, you probably should.

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Speaker 1: I have to hear the certain level of humility there,

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Speaker 1: given how bariss you have been for the last year

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Speaker 1: and a half. Really, why do you think the the

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Speaker 1: bear side of this market has gotten this first half

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Speaker 1: at least so wrong?

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Speaker 11: Good question. I wish I had a better answer than

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Speaker 11: I'm willing to give capable of giving. It has shocked

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Speaker 11: me something. I have been utterly surprised the fact that

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Speaker 11: everything that I have learned in the past forty five

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Speaker 11: years seems to have gone out the window. The public

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Speaker 11: has gotten it right, the pros have gotten it wrong.

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Speaker 11: And why that has occurred is really quite beyond me.

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Speaker 11: The fact that we've had an in very deal curve

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Speaker 11: we've learned that that should give rise to a recession.

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Speaker 11: This is, without question, the most well forecast recession that

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Speaker 11: has not come to fruition yet in history. I wish

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Speaker 11: I had an answer, but it has shocked a lot

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Speaker 11: of my friends of the shock to a lot of

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Speaker 11: the pros, and the public has been amenable to a

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Speaker 11: bull market. Anything that has ai written upon it reminds

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Speaker 11: me of that stock wants to go higher, that market

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Speaker 11: wants to go up, and it reminds me of the

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Speaker 11: days back in the nineteen ninety nine, two thousand and

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Speaker 11: two thousand and one when all you had to do

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Speaker 11: was say the word Internet and stock prices went up.

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Speaker 8: This is.

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Speaker 11: I think unprecedented, but it has shocked me, no question,

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Speaker 11: I have been surprised when.

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Speaker 1: You draw that parallel to nineteen ninety nine to two

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Speaker 1: thousand and one. Of course, that was a dot com

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Speaker 1: boom that led to a bust. Are you saying that

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Speaker 1: you think that this market is going to bust any

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Speaker 1: sometime soon?

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Speaker 11: Bust is a powerful word. Let's just simply say I

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Speaker 11: think prices are egregiously overextended and due to correct I

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Speaker 11: wouldn't call it a bust. I think that prices have

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Speaker 11: just become far more, far beyond the realm of rationality.

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Speaker 11: But as my good friend Gary shilling one said, the

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Speaker 11: market can remain irrational far longer than you or I

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Speaker 11: can remain solvent.

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Speaker 1: What do you think brings rationality back to this market?

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Speaker 1: Got about a minute left.

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Speaker 11: The fact that we have the eel curve has inverted,

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Speaker 11: as it is historically that that gives way to lower

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Speaker 11: stock prices, that gives way to recession, that gives way

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Speaker 11: to money leaving the stock market and going into the

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Speaker 11: bond market. The only place that I find of value

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Speaker 11: in stocks is I think that regional banks are extremely cheap,

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Speaker 11: and maybe aris are extremely cheap. But other than that,

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Speaker 11: AI has become extremely ridiculously, confoundingly, stupendously, ridiculously over extended

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Speaker 11: to the upside.

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