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Speaker 1: From the Bloomberg Interactive Broker Studios. This is Bloomberg day

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Speaker 1: Break for Friday, June sixteenth.

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Speaker 2: Coming up today, stocks around the world are on track

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Speaker 2: for their best week since March.

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Speaker 1: The Bank of Japan skirts global trends and holds it

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Speaker 1: stimulus in place.

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Speaker 2: Chinese President she Jenping meets with Microsoft founder Bill.

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Speaker 1: Gates, and Adobe is the latest tech company to ride

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Speaker 1: the AI Rally.

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Speaker 3: The New York command charge and the stabbing death of

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Speaker 3: another subway writer was released without bail, plus deadly tornadoes

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Speaker 3: in a Texas panhandletown. I'm Michael Barr. Oh, we're ahead.

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Speaker 4: I'm John Staff, Sharon's words, Ricky Fowler and Vanders shoftleish

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Speaker 4: on sixty teens at the US Open.

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Speaker 3: The metsos the Cardinals tonight. The Yankees are in Boston.

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Speaker 5: That's all straight ahead on Bloomberg day Break, the business

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Speaker 5: news you need to starn your day in just one

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Speaker 5: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

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Speaker 5: Business Appen everywhere you get your podcasts.

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Speaker 6: Good morning, I'm Nathan.

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Speaker 1: Hager and I'm Amy Morris. Here are the stories we're

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Speaker 1: following today.

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Speaker 2: Stocks enter the final day of this week. On a

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Speaker 2: winning streak, the S and P five hundred has risen

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Speaker 2: for six straight days, and it now tops the forty

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Speaker 2: four hundred level. The Dow is up almost twenty percent

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Speaker 2: from mid September low, while the Nasdaq one hundred hit

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Speaker 2: its highest level since March of twenty twenty two thanks

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Speaker 2: to Apple, Nvidia, and Microsoft and e Toro Global market

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Speaker 2: strategist Ben Laylor thinks this rally has legs.

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Speaker 1: I think the tech rally is completely justified.

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Speaker 7: I mean will see the earnings value where the earnings

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Speaker 7: growth thumbers turning up, whether it's AI, whether it's cost cutting,

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Speaker 7: whether it's investors looking for defensive growth.

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Speaker 8: I think this rally is increasingly well balanced.

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Speaker 2: Ben Ledler and Etro notes global stocks are on track

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Speaker 2: for their best week since March, but trading today could

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Speaker 2: come with plenty of twists. In turns, we will see

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Speaker 2: a massive number of options contracts expired today in what

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Speaker 2: is known as quadruple witching.

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Speaker 1: And Nathan the Federal Reserve remains largely in focus on

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Speaker 1: the heels of this round, bets that the Central Bank

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Speaker 1: will soon end its tightening cycle. Our fueling optimism, we

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Speaker 1: make it more clues today Saint Louis. FED President Jim

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Speaker 1: Bullard and FED Governor Chris Wallers speak in Norway today.

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Speaker 1: Richmond FED President Tom Barkin speaks on inflation at an

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Speaker 1: event in Maryland this morning.

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Speaker 2: Well, so far, Amy, every FED decision in this tightening

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Speaker 2: cycle's been unanimous, and now Larry Summers warns diverging views

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Speaker 2: that the Central Bank could blow it off course. We

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Speaker 2: spoke with the former Treasury secretary for the latest edition

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Speaker 2: of Bloomberg Wall Street Week.

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Speaker 9: I found the Fed's action a little bit confusing. This

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Speaker 9: meeting felt like it was driven as much by the

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Speaker 9: internal political dynamics of the FED as by any consistent

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Speaker 9: and coherent reading of the economic situation, and that was

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Speaker 9: a bit disturbing to me.

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Speaker 2: Those comments from Larry Summers come after the FED paused

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Speaker 2: rate hikes for the first time in fifteen months. Stay

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Speaker 2: tuned for more of that conversation coming up shortly on

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Speaker 2: the program.

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Speaker 1: Central banks meanwhile, also in focus in Asia overnight, the

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Speaker 1: Bank of Japan held its stimulus measures in place, as

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Speaker 1: Bloomberg Daybreak Asia anchor Brian Curtis tells us the boj

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Speaker 1: is waiting for more sustainable inflation.

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Speaker 10: Governor Kazuo, who waited a left unchanged the boj's negative

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Speaker 10: interest rate and yield curve control program. Yen immediately weakened

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Speaker 10: against the dollar. Not that there was much doubt to

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Speaker 10: any of this, as it was predicted by forty four

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Speaker 10: of forty seven economists we surveyed. Governor Huwaida has said

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Speaker 10: the cost of prematurely tightening policy could damage Japan's nascent

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Speaker 10: inflation trend, and he's not willing to risk it. Still,

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Speaker 10: speculation rumbles on that a tweak may be coming in July.

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Speaker 10: Brian Curtis Bloomberg Daybreak.

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Speaker 2: Thank you, Brian, Turning to geopolitics now, Secretary of State

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Speaker 2: Anthony Blincoln remains on track to travel to China this weekend.

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Speaker 2: The nation's top diplomat will be in Beijing Sunday. He'll

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Speaker 2: speak with several top Chinese officials during his two day visit,

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Speaker 2: including a possible meeting with China's President, Shei Jinping.

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Speaker 1: Meantime, President she has already met with another big name.

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Speaker 1: Microsoft founder Bill Gates sat down with China's president in Beijing.

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Speaker 1: She told the billionaire that China is willing to work

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Speaker 1: with the world on technology innovation and pandemic prevention Jimi.

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Speaker 2: Henry Kissinger is weighing in on geopolitics tied to China.

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Speaker 2: The former Secretary of State says a military conflict over

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Speaker 2: Taiwan is probable. That's if the current trajectory remains unchanged.

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Speaker 2: The one hundred year old diplomat sat down for a

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Speaker 2: wide ranging conversation with Bloomberg's editor in chief John Micklfwaite on.

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Speaker 11: The current predictary of religions. I think some military conflict

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Speaker 11: is probable, but I also think the current predictary of

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Speaker 11: religion must be alded.

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Speaker 2: And you can hear the full conversation with former Secretary

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Speaker 2: of State Henry Kissinger on Bloomberg Television. We'll have it

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Speaker 2: for you tonight at eight pm Eastern Listen on demand

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Speaker 2: on the Bloomberg Talks podcast. You can find that at Apple, Spotify,

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Speaker 2: and anywhere else you get your podcasts.

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Speaker 1: Turning back to the markets, now, we're seeing shares of

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Speaker 1: Adobe gaining this this morning. They're up more than three

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Speaker 1: percent in early trading. The company is raising its full

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Speaker 1: year outlook on optimism that artificial intelligence will spur software demand.

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Speaker 1: We get those details from Bloomberg's Charlie Pellett.

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Speaker 7: Adobe is the longtime top seller of software for creative professionals.

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Speaker 7: It is adding generative AI features throughout its products. Last week,

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Speaker 7: the company unveiled enterprise level subscriptions for the new tools,

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Speaker 7: which include legal assurance against copyright claims. In New York,

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Speaker 7: Charlie Pellett Bloomberg Daybreak, All right, Charlie, thanks, we have

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Speaker 7: news on Bank of America this morning. We're told the

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Speaker 7: firm's commercial banking unit is seeing a surge in new clients.

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Speaker 7: In Bloomberg's Doug Krisner has that story.

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Speaker 12: It follows the failure of several regional banks in the

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Speaker 12: US during March. Biave says its commercial banking unit had

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Speaker 12: an increase of fifty five percent in new clients in

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Speaker 12: the month of May compared to last year, and the

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Speaker 12: momentum is expected to continue. Bank of America saying the

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Speaker 12: unit is on track to report fifty percent growth in

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Speaker 12: customer editions for all of twenty twenty three. That would

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Speaker 12: be up from thirty five percent of new relationships last year,

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Speaker 12: and as a result, Bank of America is planning to

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Speaker 12: bulk up staffing to keep up with demand. This will

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Speaker 12: include hiring senior bankers from outside firms in New York.

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Speaker 12: I'm Doug Prisner, Bloomberg Daybreak.

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Speaker 7: Thank you, Doug.

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Speaker 1: Walt. Disney losing a top executive, the company's chief financial

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Speaker 1: officer taking a family medical leave of absence, stepping down

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Speaker 1: from a role as the wear at the world's largest

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Speaker 1: entertainment company. Disney says Christine McCarthy will be replaced on

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Speaker 1: an interim basis by Kevin Lansberry, the CFO of Disney's

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Speaker 1: Theme Parks division. And this is Bloomberg.

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Speaker 2: Time now to take a look at some of the

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

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Speaker 2: world with Bloomberg's Michael Varr.

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Speaker 3: Good morning, Michael, Good morning. Nathan, a twenty year old

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Speaker 3: man accused in Tuesday's deadly subway stabbing of a passenger

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Speaker 3: in Brooklyn, was released without bail. Jordan Williams was charged

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Speaker 3: with manslaughter and criminal possession of a weapon in the

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Speaker 3: of a homeless man, thirty six year old Victor Waddrogo.

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Speaker 3: Witnesses say Waydrogo was harassing subway riders and at one

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Speaker 3: point punched William's girlfriend before the deadly stabbing. William's attorney,

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Speaker 3: Jason Goldman, told ABC seven. It is a clear case

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Speaker 3: of self defense.

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Speaker 4: You have two choices right now.

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Speaker 13: List You can sit there and get assaulted and your

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Speaker 13: friends or family or loved ones can get assaulted and

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Speaker 13: seriously injured. Or you can fight back and get arrested

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Speaker 13: and maybe get charged. Maybe you go to rikers, maybe

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Speaker 13: get released. So you know, what are you supposed to do.

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Speaker 3: William's mother says that her son cares about life and

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Speaker 3: is extremely remorseful. A deadly outbreak of severe weather, at

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Speaker 3: least three people are dead and more than one hundred

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Speaker 3: injured in the Texas panhandled town of Perryton. A mobile

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Speaker 3: home park took a direct hit. Perrington Fire Chief Paul Dutcher.

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Speaker 14: Searching these areas, searching the brifield seat, making sure we've

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Speaker 14: got people gathered up.

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Speaker 3: Tornadoes were also reported from Oklahoma to Michigan. At least

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Speaker 3: fifteen people were killed and ten others were hurt after

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Speaker 3: a bus carrying more than two dozen people crashed into

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Speaker 3: a semi truck in Manitoba, Canada. Authority to say the

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Speaker 3: bus crossed the westbound lanes of Highway One and was

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Speaker 3: crossing the eastbound lanes when it collided with the semi

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Speaker 3: As drama continues with Republicans in the House, the country

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Speaker 3: is potentially headed for another showdown on government funding in October.

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Speaker 3: Bloomberg's Ad Baxter.

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Speaker 15: Reports even though a bipartisan bill raised the debt ceiling

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Speaker 15: while cutting spending passed earlier this month, this is another

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Speaker 15: battle of funding, another round. Senator Lindsey Graham says not

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Speaker 15: looking good.

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Speaker 13: The chance of passing all the appropriation bills.

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Speaker 12: For the House and Center bree On numbers almost zero.

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Speaker 15: Raam says there is a big divide between the two

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Speaker 15: chambers of the legislature in San Francisco. I'm at Baxter

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Speaker 15: Bloomberg Daybreak.

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Speaker 3: The Supreme Court, in a seven to two decision, upheld

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Speaker 3: a land law giving Native American families priority in the

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Speaker 3: adoption of Native children. A white Texas couple had challenged

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Speaker 3: the law as discriminatory on the basis of race. Global

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Speaker 3: News twenty four hours a day, powered by more than

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Speaker 3: twenty seven hundred journalists nanailists in over one hundred twenty countries.

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Speaker 3: How Michael Barr, this is Bloomberg, Nathan.

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Speaker 8: Thank you, Michael.

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Speaker 2: Time now for the Bloomberg Sports Update. Bront you by

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Speaker 2: tri State out He good morning, John Stasher.

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Speaker 4: Good morning, Nathan. US Open courses are traditionally known to

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Speaker 4: be extremely challenging, even for the best golfers in the world,

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Speaker 4: not really the case of the LA Country Club, ideal

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Speaker 4: conditions led to two historic rounds of sixty two Ricky

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Speaker 4: Fowler and Xander Shoffley. There had only been one sixty

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Speaker 4: two ever in any major Brandon Grace six years ago

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Speaker 4: at the FGA. Shofley was bogey free. Fowler set a

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Speaker 4: record with ten verdies. He made five birdie putts of

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Speaker 4: more than ten feet.

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Speaker 14: I didn't really know or see any score, and then

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Speaker 14: I saw that Alexander was at seven at that point,

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Speaker 14: and I'm not sure if he even knew where I

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Speaker 14: was or anything, but it was kind of cool to

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Speaker 14: just see if he did. To see he you know,

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Speaker 14: kind of latched on and we were, you know, taking

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Speaker 14: off of it.

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Speaker 4: Both Fowler and Shofley have been chasing their first career

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Speaker 4: major victory after numerous close calls. Although Faller had been

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Speaker 4: in a deep slump the last two years, he had

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Speaker 4: not even qualified to play the Open. Dustin Johnson in

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Speaker 4: twenty sixteen Open winner only two shots behind the co

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Speaker 4: leaders and Rory McElroy, whose only open victory was twelve

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Speaker 4: years ago, trails by three round two. Today, the public

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Speaker 4: money to help build a new stadium in Las Vegas

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Speaker 4: and the Oakland A's now a done deal. It still

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Speaker 4: needs the approval of the owners, but Baseball Comvensioner Rob

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Speaker 4: Manford said he feels sorry for A's fans, but that

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Speaker 4: there was no community sport to keep the team in Oakland.

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Speaker 4: Yankees and Red Sox Night at Fenway, Yanks first visit

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Speaker 4: to Boston. Mets host the Cardinals, who are fifteen games

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Speaker 4: under five hundred. Homer Jones has passed away a speedy

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Speaker 4: Giants receiver in the late nineteen sixties, and after a touchdown,

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Speaker 4: Jones made history becoming the first and then spike the ball.

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Speaker 4: Homer Jones was eighty two. John Stashedward Bloomberg.

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Speaker 8: Sports from coast to coast, from New York to San Francisco,

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Speaker 8: Boston to Washington, DC, nationwide on Syrias Exam the Bloomberg

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Speaker 8: Business Appen Bloomberg dot Com.

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Speaker 2: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. It

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Speaker 2: has been quite the week on Wall Street. We are

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Speaker 2: coming off six straight winning sessions for stocks. We saw

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Speaker 2: mixed US inflation report. Headline prices cooled while core inflation rose.

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Speaker 2: Traders saw that as dubvish, And finally we got a

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Speaker 2: pause in rate hikes from the Federal Reserve, the first

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Speaker 2: time they did not raise rates in fifteen months. Let's

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Speaker 2: take stock of it all now with Larry Summers, the

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Speaker 2: Bloomberg News contributor and former US Treasury secretary, sat down

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Speaker 2: for a conversation with Bloomberg's Romaine Bostick. Let's listen in

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Speaker 2: to part of that right.

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Speaker 16: Now, Larry, let's talk about the FED meeting more importantly.

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Speaker 16: That FED pause not necessarily a surprise, but do you

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Speaker 16: think it was appropriate?

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Speaker 9: I'm not sure. I found the Fed's action a little

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Speaker 9: bit confusing. I understand the arguments for not hiking at

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Speaker 9: this meeting, but those arguments wouldn't point towards signaling to

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Speaker 9: further rate increases. They wouldn't point towards significantly revising the

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Speaker 9: forecast towards a stronger economy and more inflation. I understand

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Speaker 9: the arguments for having gone the other way, but I

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Speaker 9: don't really understand the internal consistency of an approach of

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Speaker 9: pausing at this meeting. But then signaling to further rate

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Speaker 9: hikes down the road, and signaling that they no longer

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Speaker 9: expect unemployment to increase nearly as much as they used

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Speaker 9: to expect it. So this meeting felt like it was

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Speaker 9: driven as much by the internal political dynamics of the

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Speaker 9: FED as by any consistent and coherent reading of the

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Speaker 9: economic situation, and that was a bit disturbing.

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Speaker 16: They raised some of their economic projections, or at least

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Speaker 16: they improved a little bit here, but you still have

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Speaker 16: a market that seems to be betting on this idea

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Speaker 16: of a recession, the idea that the FED itself may

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Speaker 16: have actually overtightened, or at least is on its way

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Speaker 16: to doing that.

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Speaker 9: That would not be my best guess. I think it's

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Speaker 9: very hard to read. But my best guess is that

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Speaker 9: the consumer, which is seventy percent of the economy, appears

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Speaker 9: to be running really quite strong. At this point. We've

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Speaker 9: got very strong employment data, much faster than population growth.

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Speaker 9: The indicators on wages are a bit mixed, but the

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Speaker 9: ones that seem most reliable to me that adjusts for

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Speaker 9: changes in the composition the labor force are showing substantial strength.

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Speaker 7: So I don't see.

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Speaker 9: The idea that we've got a durable reduction in inflation

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Speaker 9: clearly established, nor do I see clear evidence of a

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Speaker 9: slowing coming. So in that context, I think the FED

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Speaker 9: has probably got to maintain a posture of moving towards restraint.

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Speaker 9: But I think that they ought to decide what their

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Speaker 9: balancing of risks is. And I was struck that the

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Speaker 9: balancing of risks that was implicit in not moving this

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Speaker 9: time was kind of inconsistent with the balancing of risks

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Speaker 9: that that was signaled by the two tightenings and by

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Speaker 9: the forecast revisions.

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Speaker 16: I want to go overseas to China. They had a

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Speaker 16: much different policy meeting coming out of the People's Bank

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Speaker 16: of China a cut and there's been a lot of

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Speaker 16: discussion here Larry about the health of the Chinese economy

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Speaker 16: and light of the data we've gotten and a lot

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Speaker 16: of some of the reports by Bloomberg and others that

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Speaker 16: they are considering fiscal or at least some sort of

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Speaker 16: economic stimulus measures to get that economy going back again.

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Speaker 9: I think the Chinese have a very difficult set of

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Speaker 9: challenges ahead of them. They're very serious financial overhangs coming

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Speaker 9: out of what's happening in real estate. I take a

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Speaker 9: somewhat more medium term view of it. And what's an

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Speaker 9: economy about. Economy is about people and it's about capital.

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Speaker 9: And what we know is that the number of births

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Speaker 9: in China has fallen by almost fifty percent in the

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Speaker 9: last six years. And we know that Bloomberg reported that

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Speaker 9: the number of millionaires leaving China was kind of high,

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Speaker 9: high by historical standards and high by global standards. So

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Speaker 9: whether it's a supply of people investment in new capital,

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Speaker 9: I think you've got some fundamental bets that aren't running

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Speaker 9: that positive.

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