WEBVTT - Global Stocks Rally; Xi-Gates Talk Tech

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<v Speaker 1>From the Bloomberg Interactive Broker Studios. This is Bloomberg day

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<v Speaker 1>Break for Friday, June sixteenth.

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<v Speaker 2>Coming up today, stocks around the world are on track

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<v Speaker 2>for their best week since March.

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<v Speaker 1>The Bank of Japan skirts global trends and holds it

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<v Speaker 1>stimulus in place.

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<v Speaker 2>Chinese President she Jenping meets with Microsoft founder Bill.

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<v Speaker 1>Gates, and Adobe is the latest tech company to ride

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<v Speaker 1>the AI Rally.

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<v Speaker 3>The New York command charge and the stabbing death of

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<v Speaker 3>another subway writer was released without bail, plus deadly tornadoes

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

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

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<v Speaker 4>on sixty teens at the US Open.

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<v Speaker 3>The metsos the Cardinals tonight. The Yankees are in Boston.

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<v Speaker 5>That's all straight ahead on Bloomberg day Break, the business

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<v Speaker 5>news you need to starn your day in just one

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<v Speaker 5>fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

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<v Speaker 5>Business Appen everywhere you get your podcasts.

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<v Speaker 6>Good morning, I'm Nathan.

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

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<v Speaker 1>following today.

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<v Speaker 2>Stocks enter the final day of this week. On a

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<v Speaker 2>winning streak, the S and P five hundred has risen

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<v Speaker 2>for six straight days, and it now tops the forty

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<v Speaker 2>four hundred level. The Dow is up almost twenty percent

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<v Speaker 2>from mid September low, while the Nasdaq one hundred hit

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<v Speaker 2>its highest level since March of twenty twenty two thanks

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<v Speaker 2>to Apple, Nvidia, and Microsoft and e Toro Global market

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<v Speaker 2>strategist Ben Laylor thinks this rally has legs.

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<v Speaker 1>I think the tech rally is completely justified.

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<v Speaker 7>I mean will see the earnings value where the earnings

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<v Speaker 7>growth thumbers turning up, whether it's AI, whether it's cost cutting,

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<v Speaker 7>whether it's investors looking for defensive growth.

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<v Speaker 8>I think this rally is increasingly well balanced.

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<v Speaker 2>Ben Ledler and Etro notes global stocks are on track

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<v Speaker 2>for their best week since March, but trading today could

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<v Speaker 2>come with plenty of twists. In turns, we will see

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<v Speaker 2>a massive number of options contracts expired today in what

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<v Speaker 2>is known as quadruple witching.

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<v Speaker 1>And Nathan the Federal Reserve remains largely in focus on

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<v Speaker 1>the heels of this round, bets that the Central Bank

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<v Speaker 1>will soon end its tightening cycle. Our fueling optimism, we

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<v Speaker 1>make it more clues today Saint Louis. FED President Jim

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<v Speaker 1>Bullard and FED Governor Chris Wallers speak in Norway today.

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<v Speaker 1>Richmond FED President Tom Barkin speaks on inflation at an

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<v Speaker 1>event in Maryland this morning.

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<v Speaker 2>Well, so far, Amy, every FED decision in this tightening

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<v Speaker 2>cycle's been unanimous, and now Larry Summers warns diverging views

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<v Speaker 2>that the Central Bank could blow it off course. We

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<v Speaker 2>spoke with the former Treasury secretary for the latest edition

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<v Speaker 2>of Bloomberg Wall Street Week.

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<v Speaker 9>I found the Fed's action a little bit confusing. This

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<v Speaker 9>meeting felt like it was driven as much by the

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<v Speaker 9>internal political dynamics of the FED as by any consistent

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<v Speaker 9>and coherent reading of the economic situation, and that was

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<v Speaker 9>a bit disturbing to me.

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<v Speaker 2>Those comments from Larry Summers come after the FED paused

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<v Speaker 2>rate hikes for the first time in fifteen months. Stay

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<v Speaker 2>tuned for more of that conversation coming up shortly on

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<v Speaker 2>the program.

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<v Speaker 1>Central banks meanwhile, also in focus in Asia overnight, the

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<v Speaker 1>Bank of Japan held its stimulus measures in place, as

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<v Speaker 1>Bloomberg Daybreak Asia anchor Brian Curtis tells us the boj

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<v Speaker 1>is waiting for more sustainable inflation.

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<v Speaker 10>Governor Kazuo, who waited a left unchanged the boj's negative

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<v Speaker 10>interest rate and yield curve control program. Yen immediately weakened

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<v Speaker 10>against the dollar. Not that there was much doubt to

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<v Speaker 10>any of this, as it was predicted by forty four

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<v Speaker 10>of forty seven economists we surveyed. Governor Huwaida has said

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<v Speaker 10>the cost of prematurely tightening policy could damage Japan's nascent

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

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<v Speaker 10>speculation rumbles on that a tweak may be coming in July.

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<v Speaker 10>Brian Curtis Bloomberg Daybreak.

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<v Speaker 2>Thank you, Brian, Turning to geopolitics now, Secretary of State

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<v Speaker 2>Anthony Blincoln remains on track to travel to China this weekend.

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

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<v Speaker 2>speak with several top Chinese officials during his two day visit,

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<v Speaker 2>including a possible meeting with China's President, Shei Jinping.

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<v Speaker 1>Meantime, President she has already met with another big name.

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

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<v Speaker 1>She told the billionaire that China is willing to work

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<v Speaker 1>with the world on technology innovation and pandemic prevention Jimi.

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<v Speaker 2>Henry Kissinger is weighing in on geopolitics tied to China.

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<v Speaker 2>The former Secretary of State says a military conflict over

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<v Speaker 2>Taiwan is probable. That's if the current trajectory remains unchanged.

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<v Speaker 2>The one hundred year old diplomat sat down for a

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

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<v Speaker 11>The current predictary of religions. I think some military conflict

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<v Speaker 11>is probable, but I also think the current predictary of

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<v Speaker 11>religion must be alded.

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<v Speaker 2>And you can hear the full conversation with former Secretary

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<v Speaker 2>of State Henry Kissinger on Bloomberg Television. We'll have it

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<v Speaker 2>for you tonight at eight pm Eastern Listen on demand

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

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<v Speaker 2>and anywhere else you get your podcasts.

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<v Speaker 1>Turning back to the markets, now, we're seeing shares of

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<v Speaker 1>Adobe gaining this this morning. They're up more than three

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<v Speaker 1>percent in early trading. The company is raising its full

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<v Speaker 1>year outlook on optimism that artificial intelligence will spur software demand.

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<v Speaker 1>We get those details from Bloomberg's Charlie Pellett.

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<v Speaker 7>Adobe is the longtime top seller of software for creative professionals.

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<v Speaker 7>It is adding generative AI features throughout its products. Last week,

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<v Speaker 7>the company unveiled enterprise level subscriptions for the new tools,

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<v Speaker 7>which include legal assurance against copyright claims. In New York,

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<v Speaker 7>Charlie Pellett Bloomberg Daybreak, All right, Charlie, thanks, we have

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<v Speaker 7>news on Bank of America this morning. We're told the

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

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<v Speaker 7>In Bloomberg's Doug Krisner has that story.

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<v Speaker 12>It follows the failure of several regional banks in the

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<v Speaker 12>US during March. Biave says its commercial banking unit had

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<v Speaker 12>an increase of fifty five percent in new clients in

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<v Speaker 12>the month of May compared to last year, and the

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<v Speaker 12>momentum is expected to continue. Bank of America saying the

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<v Speaker 12>unit is on track to report fifty percent growth in

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<v Speaker 12>customer editions for all of twenty twenty three. That would

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<v Speaker 12>be up from thirty five percent of new relationships last year,

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<v Speaker 12>and as a result, Bank of America is planning to

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<v Speaker 12>bulk up staffing to keep up with demand. This will

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<v Speaker 12>include hiring senior bankers from outside firms in New York.

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<v Speaker 12>I'm Doug Prisner, Bloomberg Daybreak.

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<v Speaker 7>Thank you, Doug.

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

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<v Speaker 1>officer taking a family medical leave of absence, stepping down

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<v Speaker 1>from a role as the wear at the world's largest

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<v Speaker 1>entertainment company. Disney says Christine McCarthy will be replaced on

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<v Speaker 1>an interim basis by Kevin Lansberry, the CFO of Disney's

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<v Speaker 1>Theme Parks division. And this is Bloomberg.

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<v Speaker 2>Time now to take a look at some of the

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<v Speaker 2>other stories making news in New York and around the

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<v Speaker 2>world with Bloomberg's Michael Varr.

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<v Speaker 3>Good morning, Michael, Good morning. Nathan, a twenty year old

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<v Speaker 3>man accused in Tuesday's deadly subway stabbing of a passenger

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<v Speaker 3>in Brooklyn, was released without bail. Jordan Williams was charged

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<v Speaker 3>with manslaughter and criminal possession of a weapon in the

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<v Speaker 3>of a homeless man, thirty six year old Victor Waddrogo.

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<v Speaker 3>Witnesses say Waydrogo was harassing subway riders and at one

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<v Speaker 3>point punched William's girlfriend before the deadly stabbing. William's attorney,

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<v Speaker 3>Jason Goldman, told ABC seven. It is a clear case

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<v Speaker 3>of self defense.

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<v Speaker 4>You have two choices right now.

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<v Speaker 13>List You can sit there and get assaulted and your

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<v Speaker 13>friends or family or loved ones can get assaulted and

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<v Speaker 13>seriously injured. Or you can fight back and get arrested

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<v Speaker 13>and maybe get charged. Maybe you go to rikers, maybe

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<v Speaker 13>get released. So you know, what are you supposed to do.

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<v Speaker 3>William's mother says that her son cares about life and

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<v Speaker 3>is extremely remorseful. A deadly outbreak of severe weather, at

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<v Speaker 3>least three people are dead and more than one hundred

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<v Speaker 3>injured in the Texas panhandled town of Perryton. A mobile

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<v Speaker 3>home park took a direct hit. Perrington Fire Chief Paul Dutcher.

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<v Speaker 14>Searching these areas, searching the brifield seat, making sure we've

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<v Speaker 14>got people gathered up.

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<v Speaker 3>Tornadoes were also reported from Oklahoma to Michigan. At least

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<v Speaker 3>fifteen people were killed and ten others were hurt after

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<v Speaker 3>a bus carrying more than two dozen people crashed into

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<v Speaker 3>a semi truck in Manitoba, Canada. Authority to say the

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<v Speaker 3>bus crossed the westbound lanes of Highway One and was

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<v Speaker 3>crossing the eastbound lanes when it collided with the semi

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<v Speaker 3>As drama continues with Republicans in the House, the country

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<v Speaker 3>is potentially headed for another showdown on government funding in October.

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<v Speaker 3>Bloomberg's Ad Baxter.

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<v Speaker 15>Reports even though a bipartisan bill raised the debt ceiling

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<v Speaker 15>while cutting spending passed earlier this month, this is another

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<v Speaker 15>battle of funding, another round. Senator Lindsey Graham says not

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<v Speaker 15>looking good.

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<v Speaker 13>The chance of passing all the appropriation bills.

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<v Speaker 12>For the House and Center bree On numbers almost zero.

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<v Speaker 15>Raam says there is a big divide between the two

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<v Speaker 15>chambers of the legislature in San Francisco. I'm at Baxter

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<v Speaker 15>Bloomberg Daybreak.

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<v Speaker 3>The Supreme Court, in a seven to two decision, upheld

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<v Speaker 3>a land law giving Native American families priority in the

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<v Speaker 3>adoption of Native children. A white Texas couple had challenged

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<v Speaker 3>the law as discriminatory on the basis of race. Global

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<v Speaker 3>News twenty four hours a day, powered by more than

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<v Speaker 3>twenty seven hundred journalists nanailists in over one hundred twenty countries.

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<v Speaker 3>How Michael Barr, this is Bloomberg, Nathan.

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<v Speaker 8>Thank you, Michael.

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<v Speaker 2>Time now for the Bloomberg Sports Update. Bront you by

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<v Speaker 2>tri State out He good morning, John Stasher.

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<v Speaker 4>Good morning, Nathan. US Open courses are traditionally known to

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<v Speaker 4>be extremely challenging, even for the best golfers in the world,

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<v Speaker 4>not really the case of the LA Country Club, ideal

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<v Speaker 4>conditions led to two historic rounds of sixty two Ricky

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<v Speaker 4>Fowler and Xander Shoffley. There had only been one sixty

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<v Speaker 4>two ever in any major Brandon Grace six years ago

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<v Speaker 4>at the FGA. Shofley was bogey free. Fowler set a

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<v Speaker 4>record with ten verdies. He made five birdie putts of

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<v Speaker 4>more than ten feet.

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<v Speaker 14>I didn't really know or see any score, and then

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<v Speaker 14>I saw that Alexander was at seven at that point,

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<v Speaker 14>and I'm not sure if he even knew where I

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<v Speaker 14>was or anything, but it was kind of cool to

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<v Speaker 14>just see if he did. To see he you know,

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<v Speaker 14>kind of latched on and we were, you know, taking

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<v Speaker 14>off of it.

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<v Speaker 4>Both Fowler and Shofley have been chasing their first career

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<v Speaker 4>major victory after numerous close calls. Although Faller had been

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<v Speaker 4>in a deep slump the last two years, he had

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<v Speaker 4>not even qualified to play the Open. Dustin Johnson in

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<v Speaker 4>twenty sixteen Open winner only two shots behind the co

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<v Speaker 4>leaders and Rory McElroy, whose only open victory was twelve

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<v Speaker 4>years ago, trails by three round two. Today, the public

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<v Speaker 4>money to help build a new stadium in Las Vegas

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<v Speaker 4>and the Oakland A's now a done deal. It still

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<v Speaker 4>needs the approval of the owners, but Baseball Comvensioner Rob

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<v Speaker 4>Manford said he feels sorry for A's fans, but that

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<v Speaker 4>there was no community sport to keep the team in Oakland.

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<v Speaker 4>Yankees and Red Sox Night at Fenway, Yanks first visit

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<v Speaker 4>to Boston. Mets host the Cardinals, who are fifteen games

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<v Speaker 4>under five hundred. Homer Jones has passed away a speedy

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<v Speaker 4>Giants receiver in the late nineteen sixties, and after a touchdown,

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<v Speaker 4>Jones made history becoming the first and then spike the ball.

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<v Speaker 4>Homer Jones was eighty two. John Stashedward Bloomberg.

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<v Speaker 8>Sports from coast to coast, from New York to San Francisco,

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<v Speaker 8>Boston to Washington, DC, nationwide on Syrias Exam the Bloomberg

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<v Speaker 8>Business Appen Bloomberg dot Com.

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

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<v Speaker 2>has been quite the week on Wall Street. We are

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<v Speaker 2>coming off six straight winning sessions for stocks. We saw

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<v Speaker 2>mixed US inflation report. Headline prices cooled while core inflation rose.

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<v Speaker 2>Traders saw that as dubvish, And finally we got a

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<v Speaker 2>pause in rate hikes from the Federal Reserve, the first

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<v Speaker 2>time they did not raise rates in fifteen months. Let's

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<v Speaker 2>take stock of it all now with Larry Summers, the

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<v Speaker 2>Bloomberg News contributor and former US Treasury secretary, sat down

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<v Speaker 2>for a conversation with Bloomberg's Romaine Bostick. Let's listen in

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<v Speaker 2>to part of that right.

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

0:11:56.200 --> 0:12:00.440
<v Speaker 16>That FED pause not necessarily a surprise, but do you

0:12:00.440 --> 0:12:01.439
<v Speaker 16>think it was appropriate?

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<v Speaker 9>I'm not sure. I found the Fed's action a little

0:12:04.960 --> 0:12:12.640
<v Speaker 9>bit confusing. I understand the arguments for not hiking at

0:12:12.640 --> 0:12:17.319
<v Speaker 9>this meeting, but those arguments wouldn't point towards signaling to

0:12:17.640 --> 0:12:22.880
<v Speaker 9>further rate increases. They wouldn't point towards significantly revising the

0:12:22.920 --> 0:12:28.679
<v Speaker 9>forecast towards a stronger economy and more inflation. I understand

0:12:28.720 --> 0:12:33.800
<v Speaker 9>the arguments for having gone the other way, but I

0:12:33.840 --> 0:12:40.000
<v Speaker 9>don't really understand the internal consistency of an approach of

0:12:40.360 --> 0:12:46.440
<v Speaker 9>pausing at this meeting. But then signaling to further rate

0:12:46.520 --> 0:12:49.920
<v Speaker 9>hikes down the road, and signaling that they no longer

0:12:50.040 --> 0:12:54.079
<v Speaker 9>expect unemployment to increase nearly as much as they used

0:12:54.120 --> 0:12:58.240
<v Speaker 9>to expect it. So this meeting felt like it was

0:12:58.360 --> 0:13:01.800
<v Speaker 9>driven as much by the internal political dynamics of the

0:13:01.840 --> 0:13:07.680
<v Speaker 9>FED as by any consistent and coherent reading of the

0:13:07.800 --> 0:13:11.200
<v Speaker 9>economic situation, and that was a bit disturbing.

0:13:11.600 --> 0:13:13.959
<v Speaker 16>They raised some of their economic projections, or at least

0:13:13.960 --> 0:13:16.200
<v Speaker 16>they improved a little bit here, but you still have

0:13:16.240 --> 0:13:18.320
<v Speaker 16>a market that seems to be betting on this idea

0:13:18.800 --> 0:13:21.920
<v Speaker 16>of a recession, the idea that the FED itself may

0:13:21.960 --> 0:13:24.120
<v Speaker 16>have actually overtightened, or at least is on its way

0:13:24.120 --> 0:13:24.600
<v Speaker 16>to doing that.

0:13:25.480 --> 0:13:28.559
<v Speaker 9>That would not be my best guess. I think it's

0:13:28.679 --> 0:13:32.560
<v Speaker 9>very hard to read. But my best guess is that

0:13:33.200 --> 0:13:37.760
<v Speaker 9>the consumer, which is seventy percent of the economy, appears

0:13:37.840 --> 0:13:43.720
<v Speaker 9>to be running really quite strong. At this point. We've

0:13:43.760 --> 0:13:49.760
<v Speaker 9>got very strong employment data, much faster than population growth.

0:13:50.360 --> 0:13:53.920
<v Speaker 9>The indicators on wages are a bit mixed, but the

0:13:53.960 --> 0:13:58.360
<v Speaker 9>ones that seem most reliable to me that adjusts for

0:13:58.520 --> 0:14:04.800
<v Speaker 9>changes in the composition the labor force are showing substantial strength.

0:14:05.400 --> 0:14:07.520
<v Speaker 7>So I don't see.

0:14:07.559 --> 0:14:12.360
<v Speaker 9>The idea that we've got a durable reduction in inflation

0:14:13.080 --> 0:14:18.120
<v Speaker 9>clearly established, nor do I see clear evidence of a

0:14:18.240 --> 0:14:24.520
<v Speaker 9>slowing coming. So in that context, I think the FED

0:14:25.080 --> 0:14:31.280
<v Speaker 9>has probably got to maintain a posture of moving towards restraint.

0:14:31.840 --> 0:14:35.560
<v Speaker 9>But I think that they ought to decide what their

0:14:35.680 --> 0:14:40.880
<v Speaker 9>balancing of risks is. And I was struck that the

0:14:40.920 --> 0:14:46.280
<v Speaker 9>balancing of risks that was implicit in not moving this

0:14:46.400 --> 0:14:50.440
<v Speaker 9>time was kind of inconsistent with the balancing of risks

0:14:50.440 --> 0:14:55.520
<v Speaker 9>that that was signaled by the two tightenings and by

0:14:56.080 --> 0:14:58.640
<v Speaker 9>the forecast revisions.

0:14:59.000 --> 0:15:02.040
<v Speaker 16>I want to go overseas to China. They had a

0:15:02.120 --> 0:15:04.400
<v Speaker 16>much different policy meeting coming out of the People's Bank

0:15:04.440 --> 0:15:06.400
<v Speaker 16>of China a cut and there's been a lot of

0:15:06.440 --> 0:15:09.680
<v Speaker 16>discussion here Larry about the health of the Chinese economy

0:15:09.720 --> 0:15:11.680
<v Speaker 16>and light of the data we've gotten and a lot

0:15:11.720 --> 0:15:14.160
<v Speaker 16>of some of the reports by Bloomberg and others that

0:15:14.160 --> 0:15:17.000
<v Speaker 16>they are considering fiscal or at least some sort of

0:15:17.000 --> 0:15:20.360
<v Speaker 16>economic stimulus measures to get that economy going back again.

0:15:21.240 --> 0:15:26.480
<v Speaker 9>I think the Chinese have a very difficult set of

0:15:26.720 --> 0:15:33.160
<v Speaker 9>challenges ahead of them. They're very serious financial overhangs coming

0:15:33.200 --> 0:15:37.920
<v Speaker 9>out of what's happening in real estate. I take a

0:15:38.000 --> 0:15:41.400
<v Speaker 9>somewhat more medium term view of it. And what's an

0:15:41.440 --> 0:15:46.920
<v Speaker 9>economy about. Economy is about people and it's about capital.

0:15:47.440 --> 0:15:50.120
<v Speaker 9>And what we know is that the number of births

0:15:50.160 --> 0:15:54.200
<v Speaker 9>in China has fallen by almost fifty percent in the

0:15:54.280 --> 0:15:59.800
<v Speaker 9>last six years. And we know that Bloomberg reported that

0:16:00.640 --> 0:16:05.360
<v Speaker 9>the number of millionaires leaving China was kind of high,

0:16:05.680 --> 0:16:10.120
<v Speaker 9>high by historical standards and high by global standards. So

0:16:10.240 --> 0:16:16.760
<v Speaker 9>whether it's a supply of people investment in new capital,

0:16:17.200 --> 0:16:21.280
<v Speaker 9>I think you've got some fundamental bets that aren't running

0:16:21.320 --> 0:16:22.359
<v Speaker 9>that positive.

0:16:25.000 --> 0:16:28.040
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