Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning.
Speaker 1: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 1: stories we're following today.
Speaker 3: Here, and we begin with tensions escalating in the Middle East.
Speaker 3: An Egyptian soldier has been killed in a clash with
Speaker 3: Israeli troops at the Rafa border crossing in Gaza. The
Speaker 3: death comes after an Israeli airstrike killed and estimated forty
Speaker 3: five Palestinians at a camp for displaced people in the territory.
Speaker 3: We get more from Bloomberg Middle East anchor Jumana Bersecci.
Speaker 4: But the big question for the international community is whether
Speaker 4: or not what happened over the weekend constitutes a red
Speaker 4: line as far as the US are concerned, and whether
Speaker 4: actually it would lead to any impact on the shipment
Speaker 4: of military equipment or even a pause of the military
Speaker 4: equipment that the US had promised to provide Israel with.
Speaker 3: Bloomberg's Jamani Barsati says Israeli Prime Minister Benjamin Nittanyahu has
Speaker 3: called the airstrike in Rafas Sunday a quote tragic mistake.
Speaker 1: Well, Nathan, Former President Donald Trump is taking a hardline
Speaker 1: stance on pro Palestinian demonstrations on college campuses. According to
Speaker 1: her report in The Washington Post, he told donors at
Speaker 1: a recent event in New York that he deports student protesters,
Speaker 1: and he praised New York City police for clearing the
Speaker 1: demonstration at Columbia University. Trump said he supports Israel's right
Speaker 1: to continue its war on terror, but donors at the
Speaker 1: gathering say he didn't mention Prime Minister net Yahoo that
Speaker 1: you have not spoken in years. Trump has complained about
Speaker 1: net Yaho publicly after he acknowledged President Biden's win in
Speaker 1: twenty twenty.
Speaker 4: Well.
Speaker 3: Meanwhile, Karen closing arguments are expected today in Trump's criminal
Speaker 3: hush money trial in New York. Bloomberg Zamy Morris as
Speaker 3: a preview.
Speaker 5: Prosecutors will present their summations first as they try to
Speaker 5: convince the jury that Donald Trump falsified business records. They
Speaker 5: have to prove beyond a reasonable doubt that Trump intentionally
Speaker 5: made or directed others to make false entries in business records,
Speaker 5: did so with the intent to commit another underlying crime,
Speaker 5: and sought to conceal the commission of that crime. Now,
Speaker 5: the defense only has to sway one juror because the
Speaker 5: verdict has to be unanimous. If the jury deadlocks, the
Speaker 5: judge can declare a mistrial. Judge Wan Mershaun said last
Speaker 5: week he hopes the jury will get the case by tomorrow.
Speaker 5: Amy Morris, Bloomberg Radio.
Speaker 1: All right, Amy, thanks. Back at the White House, the
Speaker 1: Biden administration is unveiling a new approach to climate policy.
Speaker 1: Treasury Secretary Janet Yellen and other cabinet officials are recommending
Speaker 1: that companies be allowed to use curbon credits to offset
Speaker 1: some of their so called Scope three emissions, or those
Speaker 1: generated by their suppliers and customers. Carbon offsets have been
Speaker 1: criticized in the past. Some of the methods used to
Speaker 1: calculate carbon dioxide taken out of the atmosphere have not
Speaker 1: fulfilled their claims. Secretary Yellen says voluntary carbon markets can
Speaker 1: help unlock the power of private markets to reduce emissions,
Speaker 1: but only if we address existing challenges well.
Speaker 3: Turning to financial markets, Karen wall Street gets back to
Speaker 3: work following the long holiday week, and perhaps the biggest
Speaker 3: market moving event of the week is going to come
Speaker 3: on Friday. That's when we get the Federal reserves, favorite
Speaker 3: measure of underlying inflation. We get a preview now from
Speaker 3: Bloomberg's Jeff Bellinger.
Speaker 6: The Fed's first line inflation gauge may be about to
Speaker 6: show some modest relief from stubborn price pressures. Economists expect
Speaker 6: the Personal Consumption Expenditures price index minus food and energy
Speaker 6: to rise two tenths of a percent in April. That
Speaker 6: would mark the smallest advance so far this year for
Speaker 6: the measure, which provides a better snapshot of underlying inflation.
Speaker 6: FED Chair Jay Powell and his colleagues have stressed the
Speaker 6: need for more evidence that inflation is on a sustained
Speaker 6: path to their two percent goal before cutting the benchmark
Speaker 6: interest rate. That rate has been at a two decade
Speaker 6: high since July. Jeff Bellinger, Bloomberg Radio, all.
Speaker 1: Right, Jeff, thanks so. We also continue to hear from
Speaker 1: several FED officials this week. This morning in Tokyo, Cleveland,
Speaker 1: FED President Loretta mess said the US Central Bank should
Speaker 1: consider ways to better communicate to the public how economic
Speaker 1: conditions will affect future policy decisions. Mester recommended two key changes,
Speaker 1: adding more words to the Fed's post meeting policy statement
Speaker 1: to describe how officials assess economic developments and potential risk
Speaker 1: to the outlook and more detail to its quarterly summary
Speaker 1: of policy makers Economic Forecasts.
Speaker 3: Well, here's a milestone, Karen. For the first time in
Speaker 3: one hundred years, stock trades on Wall Street will have
Speaker 3: to settle in a single day. Shift to the system
Speaker 3: known as T plus one will cut the time it
Speaker 3: takes to complete every transaction in half. We get more
Speaker 3: from Bloomberg's Crity Gupta.
Speaker 7: This needs to be a T plus five. This needs
Speaker 7: to take five days to settle trades. And the reason
Speaker 7: back then that they had to kind of shrink the
Speaker 7: time was because so many people were getting involved in
Speaker 7: the stock market. It was called the Roaring twenties for
Speaker 7: a reason. Fast forward essentially later, you see the same
Speaker 7: kind of impulse to get involved in the stock market
Speaker 7: in twenty twenty one. And that's where all of this
Speaker 7: comes from. The problem is there are some teething paints
Speaker 7: that come with it, and so when all a lot
Speaker 7: of people are hitting their desks today, they're going to
Speaker 7: be saying, Okay, well, let's all kind of brace for
Speaker 7: impact here, because there are liquidity concerns, there are staffing concerns,
Speaker 7: there are technical glitches that can go wrong as they
Speaker 7: adopt the system, now.
Speaker 3: Boomberg's Critty Gibda says this isn't the first time Wall
Speaker 3: Street's gone through a transition like this, but industry pros
Speaker 3: say it will be the most challenging.
Speaker 1: Well, Nathan, the shine may be back on Apple and China.
Speaker 1: iPhone staged a rebound last month, with shipment's rising fifty
Speaker 1: two percent amid a flurry of discounts from retail partners.
Speaker 1: Apple and its Chinese resellers have been cutting prices since
Speaker 1: it started a year, and those deals are extending into
Speaker 1: this summer sales season. Shares of Apple are at more
Speaker 1: than two percent in early trading.
Speaker 3: Yeah, we got to keep an eye on so called
Speaker 3: meme stocks as well, Karen. They are back on the move.
Speaker 3: Game Stop and AMC Entertainment are two of the most
Speaker 3: actively traded stocks this morning. Shares of game Stop are
Speaker 3: up nineteen and a half percent. The video game retailer
Speaker 3: brought in nearly a billion dollars from a share sale program.
Speaker 3: AMC is up five and a half percent.
Speaker 1: And it's time now for a look at some of
Speaker 1: the other stories making news in New York and around
Speaker 1: the world. And for that were joined by Bloomberg's Michael
Speaker 1: Barr Michael, Good morning.
Speaker 8: Good morning, Karen. A series of powerful storms in the
Speaker 8: central and southern US over the Memorial Day holiday weekend
Speaker 8: has killed at least twenty three people living, homes and
Speaker 8: businesses destroyed, and power outages. In Valley View, Texas. This
Speaker 8: man says he was driving with his wife and took
Speaker 8: shelter at a gas station.
Speaker 3: It got so intense that I could feel every particle
Speaker 3: of dirt, sand, fiberglass, glass hitting my face.
Speaker 8: The destructive storms also caused deaths in Texas, Oklahoma, and Arkansas.
Speaker 8: The big return home day for the holiday weekend was
Speaker 8: not an easy trip for some airline passengers who were
Speaker 8: impacted by bad weather. In the northeast. La Guardia Airport
Speaker 8: and Newark Liberty experienced the worst of canceled and delayed flights.
Speaker 8: The TSA two point nine million people were screened at
Speaker 8: US airports on Friday, a single day record. Passengers on
Speaker 8: board a Spirit Airlines flight who came close to a
Speaker 8: water landing and now sharing their stories the moments before
Speaker 8: their safe return to Montego Bay Terminal in Jamaica, they
Speaker 8: were having a frightening experience. This passenger says of the
Speaker 8: fort Lauderdale, Florida bound flight first announced he would be
Speaker 8: turning the plane back to Jamaica's airport to address a
Speaker 8: maintenance issue, and then she heard the pilot again, and
Speaker 8: when he.
Speaker 5: Said prepare for emergency landing, I took my earbud out
Speaker 5: and I looked at the two people in my raw.
Speaker 8: I said, did he just say water landing?
Speaker 2: And they said yeah.
Speaker 8: Everyone on board was provided with meal vouchers, hotel accommodations,
Speaker 8: and were rebooked. The search for three men who were
Speaker 8: allegedly involved in the death of a soap star continues.
Speaker 8: Los Angeles police say thirty seven year old Johnny wactor
Speaker 8: who played Brando Corbett on ABC's General Hospital, I've interrupted
Speaker 8: a possible car theft right before the gunshots early Saturday morning.
Speaker 8: Fellow actor and friend Colin Flynn.
Speaker 1: Donnie is just an unbelievable friend. He such a humble, loving,
Speaker 1: passionate person.
Speaker 2: He did tons of service to help other people.
Speaker 8: According to police, the suspects who got away with trying
Speaker 8: to steal Wactors catalytic converter on his car. It's primary
Speaker 8: runoff day in Texas. There are seven GOP congressional nominations
Speaker 8: up for grabs. Incumbent Republican Congressman Tony Gonzalez of San
Speaker 8: Antonio is facing a fight for the party nomination against
Speaker 8: Second Amendment activists YouTuber Brandon Herrera, known online as the
Speaker 8: Ak Guy, Global News twenty four hours a day and
Speaker 8: whenever you want it with the Bloomberg News. Now, I'm
Speaker 8: Michael Barr, and this is Bloomberg Karen.
Speaker 1: All right, Michael Barr, thank you time now for the
Speaker 1: Bloomberg Sports Update with John Stashauer. John, good morning, Good.
Speaker 9: Morning, Karen. Celtics. Not only could I really should have
Speaker 9: lost games one and three versus Indiana, the Pacers had
Speaker 9: late leads in both. In Game four, also close was
Speaker 9: tied in the final minute.
Speaker 1: Jayleb stops out of time, troubles to the middle of
Speaker 1: the floor, jump pass.
Speaker 6: Out of the corner Derek White for three.
Speaker 4: Got it.
Speaker 9: Derek White from the right corner.
Speaker 6: As David Boston a one oh five one oh two.
Speaker 9: League on ninety eight five sports iuve in Boston. That
Speaker 9: was the final. Celtics finished the sweep advance to the
Speaker 9: NBA Finals, where the twenty third time looks like they'll
Speaker 9: played Dallas. The Mats are up three zip on Minnesota
Speaker 9: Game four. Tonight, the basketball world remembering Hall of famer
Speaker 9: Bill Walton, passed away from cancer went healthy one of
Speaker 9: the greatest ever nineteen seventy three NCAA Championship game with UCLA,
Speaker 9: he scored forty four points, shot twenty one of twenty two.
Speaker 9: Four years later led Portland to the NBA title and
Speaker 9: that game a long run of foot injuries, but in
Speaker 9: nineteen eighty six he helped the Celtics to the championship,
Speaker 9: and then despite a lifelong stuttering problem, Walton became a
Speaker 9: broadcaster and safe to say, there's never been another one
Speaker 9: like and Bill Walton, who estimated that he had attended
Speaker 9: over eight fifty Grateful Dead concerts, it was seventy one.
Speaker 9: No One at tennis history has dominated a tournament like
Speaker 9: rockfielded out the French Open, but the fourteen time champion,
Speaker 9: now thirty seven, is battled injuries, nearing retirement, and since
Speaker 9: he was unseated, he had to face Sasha asze Verev
Speaker 9: in the opening round of doll lost in straight sets.
Speaker 9: Stanley Cup Playoffs, Dallas came from two goals down to
Speaker 9: win five to three, and Edmonton's Stars lead the series
Speaker 9: two to one Rangers, bringing two to one lead the
Speaker 9: game four tonight at Florida. For the last five Ranger
Speaker 9: winnings are coming overtime. Mets and Dodgers reigned down so
Speaker 9: a straight doubleheader today at City Field, starting the four
Speaker 9: Yankee starter a series at the Angels Orioles fifth straight
Speaker 9: win eleven three over the Red Sox. Nationals beat the
Speaker 9: Braves eight to four. Giants beat the Phillies eight to four.
Speaker 9: Angel Hernandez has ended his umpiring career after thirty three seasons.
Speaker 9: His reputation was that he was baseball's worst umpire. John
Speaker 9: Stashedward Bloomberg Sports Kenny.
Speaker 10: Nava coast to coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 10: and around the world on Bloomberg dot Com and the
Speaker 10: Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 3: Good morning, I'm Nathan Hager. Weel we are heading into
Speaker 3: a holiday shortened trading week this morning with a lot
Speaker 3: of investor focus on what's coming. At the end of
Speaker 3: this week. The feds preferred reading on inflation could give
Speaker 3: more of a clue on the path for interest rates
Speaker 3: for the next rest of this year. For more, we
Speaker 3: are joined in our Bloomberg Interactive Brokers Studio by Lori Calvacina,
Speaker 3: head of US Equity Strategy at RBC Capital Markets, Lourd,
Speaker 3: good morning. Always great to speak with you. So is
Speaker 3: it all about the PCE at the end of the
Speaker 3: week or is there something else that investors should be
Speaker 3: watching out for this week?
Speaker 11: Well, thanks for having me as always, Nathan. And look,
Speaker 11: you know there it feels like kind of a lightish
Speaker 11: week on the economic date. I think we've got a
Speaker 11: consumer sentiment reading we'll keep an eye on. But I
Speaker 11: do think you're right. I think it's all about inflation,
Speaker 11: you know, in my meetings and I was on the
Speaker 11: road again last week at all you know, centers around
Speaker 11: this debate over when is the Fed going to move?
Speaker 11: When should they move? But really that is the debate
Speaker 11: and at all hinges on the inflation readings.
Speaker 3: Now we got even more clues just this morning on
Speaker 3: a competing network from Minneapolis FED President Neil Keshkari saying
Speaker 3: that he's seeing inflation move sideways and he's still not
Speaker 3: in a hurry to cut interest rates. I mean, is
Speaker 3: that the message that that Fed officials are putting out here?
Speaker 3: Is there sort of consolidation around that.
Speaker 11: So look, I go back to the FED presser a
Speaker 11: couple of weeks ago, and what I heard was the
Speaker 11: case being made for no hikes, not necessarily more cuts,
Speaker 11: And I think there was a little bit of confusion
Speaker 11: initially in the investment community, and I think we're sort of,
Speaker 11: in my mind at least, just sort of circling back
Speaker 11: to that initial message that was put out. I will say, Nathan,
Speaker 11: as I talked to investors last week, and I was
Speaker 11: really mostly talking to long only investors, not hedge funds.
Speaker 11: So maybe there's a little bit of a difference in
Speaker 11: sentiment between those two communities in recent weeks. But for
Speaker 11: the most part, the folks I was talking to last
Speaker 11: week's said, Okay, you know what, if the FED doesn't
Speaker 11: cut and the economy stays strong and we're trying to
Speaker 11: keep the inflation genie in the bottle, that's okay. There
Speaker 11: wasn't really a lot of consternation on the idea that
Speaker 11: we might not get any cuts this year from the
Speaker 11: investors I spoke with last week at least.
Speaker 3: Is that a sentiment that you share that we could
Speaker 3: see more of a rally even if we do remain
Speaker 3: in a higher for longer rate environment.
Speaker 11: So I generally think that the market is fine and
Speaker 11: I think that valuations can stay fine. Where we are.
Speaker 11: You know, we are at my price target of fifty
Speaker 11: three hundred. You know, we haven't done sort of the
Speaker 11: big second half outlook. We haven't done a twenty twenty
Speaker 11: five outlook yet, but we do think based on sort
Speaker 11: of the messaging of where you know, the economy is
Speaker 11: likely to be this year, what the FED is likely
Speaker 11: to do or not do this year, and where inflation
Speaker 11: is likely to end up, we seem fairly valued. And
Speaker 11: I know that's a little bit of a boring message,
Speaker 11: but we do feel a little bit stuck in neutral
Speaker 11: for the moment. I will say I am not in
Speaker 11: the bearish camp. We do have few strategists who are
Speaker 11: still sitting over there, and we do think that we're
Speaker 11: sort of midway through a recovery that begin off recession
Speaker 11: like conditions in twenty twenty two. But sometimes we do
Speaker 11: get a little bit stuck in the market. And that's
Speaker 11: how I'm feeling at the moment.
Speaker 3: Well, it does seem as though the bearish camp is
Speaker 3: getting lighter and lighter by the day, and not a
Speaker 3: whole lot of bears left at least embong prominent voices.
Speaker 3: Could that potentially be a conturing indicator if we have
Speaker 3: potentially too much polishness in the market right now?
Speaker 11: You know, it's a great point, Nathan. And as someone
Speaker 11: who's been knocking around the equity strategy world for you know,
Speaker 11: I think it's been like twenty three twenty four years
Speaker 11: since I made my way into the first strategy job
Speaker 11: as a peon, mind you, but the reality is that
Speaker 11: is something we do tend to learn. When you tend
Speaker 11: to see strategists, you know, sort of rush to you know,
Speaker 11: kind of all raise their targets in a market that's
Speaker 11: been rallying and surprising expectations, it makes you want to
Speaker 11: stop and pause and reflect and be very very careful.
Speaker 11: And I'm not saying that they're all wrong. We do
Speaker 11: talk about our valuation work as more of a compass,
Speaker 11: not a GPS I. You know, we do generally side,
Speaker 11: you know, with the bulls over the b and these scenarios.
Speaker 11: But I do think when we just look at data,
Speaker 11: we look at AAII, we look at CFTC, you know,
Speaker 11: sort of hard weekly data points that we continue to get,
Speaker 11: they're still showing us sort of either at froth on
Speaker 11: the CFTC data or on the cusp of being frothy
Speaker 11: again on the AAII data. So I do think this
Speaker 11: is a good time to maybe just sit and think
Speaker 11: a little.
Speaker 3: Got about a minute left. If we're sitting and thinking
Speaker 3: on the S and P five hundred level, does that
Speaker 3: carry through into broader indexes like the Russell two thousand.
Speaker 11: So the Russell two thousand is weakening again and we're
Speaker 11: retesting those lows that we've made a couple times over
Speaker 11: the past years relative to the S and P. And
Speaker 11: I think that's really because small caps are caught up
Speaker 11: in FED cut optimism and it's been kind of sucked
Speaker 11: out of the market again. That's pressured that part of
Speaker 11: the market. There's a lot of interesting stuff in terms
Speaker 11: of relative valuation positioning looks interesting, but at the end
Speaker 11: of the day, we need the confidence that the fed
Speaker 11: cuts are coming to get that part of the market
Speaker 11: working again.
Speaker 2: This is Bloomberg day Break Today, your morning brief on
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Speaker 2: I'm Nathan Hager and I'm Karen Moscow.
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