WEBVTT - Macron's Political Gamble; Far Right Surges in EU Elections

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. Good morning.

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<v Speaker 2>I'm Nathan Hager and I'm Amy Morris. Here are the

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<v Speaker 2>stories we're following today.

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<v Speaker 1>Amy Francis. Benchmark stock market is down nearly two percent.

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<v Speaker 1>The euro is trading at a one month low. This

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<v Speaker 1>comes after election results in Brussels. French President Emanuel mccron

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<v Speaker 1>has plunged his country into political uncertainty, dissolving the lower

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<v Speaker 1>House of Parliament and calling new legislative elections. That's after

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<v Speaker 1>his party came a distant second to the Marine Le

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<v Speaker 1>Panz far right in Sunday's European Parliament vote. Speaking to

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<v Speaker 1>the nation after the polls closed, Macrone said, the National

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<v Speaker 1>Assembly election is a chance to determine France's future.

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<v Speaker 3>So this is you.

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<v Speaker 2>This is a serious and weighty decision.

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<v Speaker 4>It's an act of trust confidence.

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<v Speaker 5>You mission, my dear compatriots, the ability of the French

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<v Speaker 5>peace to make the just choice for themselvesmen and for

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<v Speaker 5>future generations.

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<v Speaker 1>I was French President Macron, speaking through an interpreter. Now,

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<v Speaker 1>his position is head of state won't be directly affected

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<v Speaker 1>by the upcoming vote, but his ability to push through legislation,

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<v Speaker 1>the power to choose a like minded prime minister and

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<v Speaker 1>the credibility of his political project will all be on

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<v Speaker 1>the line in election that Sunday's results suggests he is

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<v Speaker 1>likely to lose and Nathan.

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<v Speaker 2>Far right parties also made gains elsewhere in Europe. In Germany,

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<v Speaker 2>Chancellor Oloff Schultz Social Democrats recorded their worst ever EU result,

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<v Speaker 2>following the third place behind the far right Alternative for

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<v Speaker 2>Germany and the center right Christian Democrats. And in Italy,

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<v Speaker 2>Prime Minister Georgia Maloney's right wing Brothers of Italy party

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<v Speaker 2>won twenty nine percent of the vote, compared with just

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<v Speaker 2>six percent in the twenty nineteen elections. Now, despite these results,

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<v Speaker 2>the centrist alliance that backed Ursula Vonderland to become EU

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<v Speaker 2>Commission President maintained its majority, led by her European People's Party.

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<v Speaker 6>We won the European electtion.

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<v Speaker 1>We are by far the strongest party.

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<v Speaker 6>We are the anchor of stability.

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<v Speaker 2>Herstel Of Vonderline plans to begin talks with our allies

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<v Speaker 2>and the Socialist and Democrats and Centrist renew groups on

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<v Speaker 2>securing their support. Today.

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<v Speaker 1>Well, in Italy, I'm sorry. In India, Amy Prime Minister

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<v Speaker 1>Narendramodi has been sworn into office for a third consecutive term,

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<v Speaker 1>extending his leadership for another five years. That followed a

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<v Speaker 1>bruising electoral setback that's forced him to share power in

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<v Speaker 1>India for the first time.

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<v Speaker 2>And we're seeing changes in the Israeli government. Benny Gantz,

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<v Speaker 2>a centrist member of Israel's three man war cabinet, has

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<v Speaker 2>announced his resignation, accusing Prime Minister Benjamin Nataniahu of mismanaging

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<v Speaker 2>the war effort. We get more from Bloomberg's at Jumana Borsecci.

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<v Speaker 7>The symbolism here is he, of course, was one of

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<v Speaker 7>the more moderate members of the Natagna Who governments. And

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<v Speaker 7>while it doesn't mean that the government itself is going

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<v Speaker 7>to fall apart, because natagna Who will still have sixty

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<v Speaker 7>four seats in the kanessset alongside his coalition partners, what

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<v Speaker 7>it does mean is that he will be more reliant

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<v Speaker 7>on some of those more right wing members of the governments,

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<v Speaker 7>and one of them, the National Security Minister Ben Gavie,

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<v Speaker 7>is actually pushing for a position on the war cabinets.

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<v Speaker 7>He's one of the more hawkish members of the governments

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<v Speaker 7>as it stands, and has been adamant that natagia who

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<v Speaker 7>should not be signing onto this Biden ceasefire proposal.

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<v Speaker 2>Bloomberg's Demani Brassecci says Gance joined Nettayahu's government shortly after

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<v Speaker 2>the October seventh Tamas attack.

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<v Speaker 1>And on the heels of Benny Gonz's resignation. Secretary of

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<v Speaker 1>State Anthony Blincoln heads back to the Middle East today

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<v Speaker 1>in a last ditch attempt to push a ceasefire deal.

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<v Speaker 1>President Biden has put the proposal forward as an Israeli one,

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<v Speaker 1>but both Israel and Hamas have distanced themselves from it.

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<v Speaker 1>White House National Security Advisor Jake Sullivan says the ball

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<v Speaker 1>is in Hamas's court.

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<v Speaker 5>We're waiting for them to communicate to Kutar in Egypt,

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<v Speaker 5>two of the mediators involved.

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<v Speaker 8>In the hostage negotiations.

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<v Speaker 5>And we are hopeful that with enough of a co

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<v Speaker 5>trus the international community all speaking with one boy, Jamas

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<v Speaker 5>will get to the right answer.

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<v Speaker 1>National Security Advisor Jake Sullivan spoke on ABC's This Week

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<v Speaker 1>Heard Sundays on Bloomberg Radio. Secretary of State Blincoln lends

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<v Speaker 1>today in Egypt, he'll meet with senior officials, including President

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<v Speaker 1>Abdolpha ta Lcci, and then he heads to Israel, where

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<v Speaker 1>he is expected to meet with Prime Minister net Hanyahu,

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<v Speaker 1>and then.

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<v Speaker 2>Back here in the US. Donald Trump will be interviewed

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<v Speaker 2>today by New York Probation officers. They'll submit a sentencing

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<v Speaker 2>recommendation for the former president.

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<v Speaker 6>Now.

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<v Speaker 2>The interview will help determine how much time, if any,

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<v Speaker 2>Trump will spend behind bars. It will be conducted virtually,

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<v Speaker 2>Trump at his home in Florida and the probation officers

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<v Speaker 2>in New York. Trump's sentencing is scheduled for July eleventh,

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<v Speaker 2>after his conviction for falsifying business record records. Rather, he

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<v Speaker 2>has vowed to appeal amy.

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<v Speaker 1>Let's turn to markets now, a double dose of macroeconomic

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<v Speaker 1>catalysts are coming on the same day. On Wednesday, we

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<v Speaker 1>get a report on consumer prices in the morning, then

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<v Speaker 1>that afternoon the FED make an interest rate decision. Mohammad Larian,

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<v Speaker 1>Queen's College Cambridge president and Bloomberg opinion columnists, says last

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<v Speaker 1>Friday stronger than expected jobs report all but rules out

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<v Speaker 1>a rate cut this summer.

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<v Speaker 5>Look, it's reasonable for a FED that is over the

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<v Speaker 5>data dependent. There's no way they can cut or signal

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<v Speaker 5>a cut in July.

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<v Speaker 9>With this data.

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<v Speaker 5>They would have to change their reaction function and be

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<v Speaker 5>public about it, and I don't see the FED doing this,

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<v Speaker 5>so that's why the door is shut.

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<v Speaker 1>Mohammadel Aarian spoke on Bloomberg a last Friday, following the

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<v Speaker 1>main jobs report and the options market sptting the S

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<v Speaker 1>and P five hundred will move one and a quarter

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<v Speaker 1>percent in either direction on Wednesday.

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<v Speaker 2>And before we get all that economic data, investors are

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<v Speaker 2>going to hear from Apple. The company is holding its

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<v Speaker 2>developers conference later today. Bloomberg Intelligence tech analyst Matthew Bloxam

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<v Speaker 2>says it'll show whether the iPhone maker can become a

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<v Speaker 2>major player in the burgeoning field of artificial intelligence and

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<v Speaker 2>whether that can drive sales.

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<v Speaker 10>Big fans really about whether this's going to kickstart a

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<v Speaker 10>new smartphone supercycle. Obviously, over the last few years we've

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<v Speaker 10>seen smartphone sales generally on the slide, and if you

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<v Speaker 10>look at the way this being positioned, these AI features

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<v Speaker 10>that they're going to announce are only going to really

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<v Speaker 10>be available on the new versions of the phone. So

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<v Speaker 10>it's going to be does Apple do enough with these

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<v Speaker 10>AI features to make people think, actually, I really want

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<v Speaker 10>to upgrade to get access to these new features.

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<v Speaker 2>Bloomberg Intelligence analyst Matthew Bloxam says the announcement will lay

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<v Speaker 2>out that Apple is a serious player in the AI space.

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<v Speaker 2>Time now for a look at some of the other

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

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<v Speaker 2>And for that we're joined by Bloomberg's Michael bar Good morning, Michael.

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<v Speaker 9>Good morning Amy. Former President Donald Trump zeroed in on

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<v Speaker 9>his criminal conviction and prosecutors at a campaign rally in

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<v Speaker 9>sweltering heat in Las Vegas Sunday afternoon. Trump also denounced

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<v Speaker 9>Nevada's Democratic senator, who is up for reelection.

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<v Speaker 2>With your help, we're going to when Nevada. We're going

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<v Speaker 2>to defeat your Biden loving radical.

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<v Speaker 3>Left senator Jackie Rosan, who's terrible.

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<v Speaker 9>Those who attended the rally had mixed reviews of the

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<v Speaker 9>former president. These Vegas voters talked about why they support

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<v Speaker 9>Trump the.

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<v Speaker 8>Decline in Biden. You're like, man, how can you vote

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<v Speaker 8>for him?

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<v Speaker 5>You know, are we better now than we were a

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<v Speaker 5>few years ago?

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<v Speaker 6>Probably not.

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<v Speaker 8>You know, I'm myself a nun.

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<v Speaker 9>Softly, however, this Vegas voter supported Nicki Haley before she

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<v Speaker 9>dropped out of the race and is uneasy about seeing

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<v Speaker 9>the former president back in office.

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<v Speaker 5>The denial of fact scientific fact in the case of

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<v Speaker 5>COVID to denial of the election are difficult for.

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<v Speaker 9>Me to accept. Meanwhile, President Joe Biden warned against the

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<v Speaker 9>rise of isolationism in the US while visiting an American

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<v Speaker 9>military cemetery in France that Donald Trump skipped six years ago.

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<v Speaker 9>Biden said he could not fathom the idea that I'd

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<v Speaker 9>come to Normandy and not make the short trip here

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<v Speaker 9>to pay tribute.

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<v Speaker 11>I think it as a measure of a country's support

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<v Speaker 11>for democratic failures that they honor those who've risked their

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<v Speaker 11>lives and lost their lives.

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<v Speaker 9>Biden said the World War One erasemetery was the final

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<v Speaker 9>resting place for soldiers who fought in the deadly US

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<v Speaker 9>Marine Corps battle. The criminal trial of President Joe Biden's

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<v Speaker 9>son is heading into its final stretch. Hunter Biden's lawyers

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<v Speaker 9>could call at least one more witness when the case

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<v Speaker 9>resumes today in Delaware's federal court. Biden himself. He is

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<v Speaker 9>charged with three felonies stemming from the October twenty eighteen

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<v Speaker 9>purchase of a gun he had for about eleven days.

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<v Speaker 9>Prosecutors say he lied on a mandatory gun purchase form

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<v Speaker 9>by saying he was not illegally using or addicted to drugs.

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<v Speaker 9>Global News twenty four hours a day and whenever you

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<v Speaker 9>want it with the Bloomberg News. Now, I'm Michael Barr,

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<v Speaker 9>and this is Bloomberg Gaming.

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<v Speaker 2>All right, Thank you, Michael.

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<v Speaker 4>Nine.

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<v Speaker 2>Now for our Bloomberg Sports update, and for that we

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<v Speaker 2>bring in John stash Hour.

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<v Speaker 3>Good morning John, Good morning Amy. After Game one in

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<v Speaker 3>the NBA Finals, Dallas coach Jason Kidds said Jalen Brown

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<v Speaker 3>was the Celtics' best player. Some perceived that as a

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<v Speaker 3>slight of Jason Tatum. What's clear through two games, Boston

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<v Speaker 3>doesn't rely on one player, a big reason. They're fourteen

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<v Speaker 3>and two in the playoffs. They're two wins from the

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<v Speaker 3>championship in Boston. Tatum didn't shoot well six of twenty two,

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<v Speaker 3>but Brown scored twenty one points, Drew Holliday at twenty six,

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<v Speaker 3>shooting eleven of fourteen. South Picks beat them as one

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<v Speaker 3>oh five ninety eight for a two to nothing series,

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<v Speaker 3>leading on ESPN Holiday praise Tatum.

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<v Speaker 6>I think I just got the opportunity. I would say

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<v Speaker 6>a lot of it was JT was taking the basket.

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<v Speaker 6>They were double teaming him and he was back in

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<v Speaker 6>the right play. I don't know if he had a

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<v Speaker 6>triple double, almost had not rebounds, but the way that

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<v Speaker 6>he played to night, the way that he let us

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<v Speaker 6>get into the paint, making plays, finding me wide open,

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<v Speaker 6>it was alid on.

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<v Speaker 3>Him look down such for Dallas scored thirty two at

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<v Speaker 3>a triple double. You only scored three points of the fourth.

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<v Speaker 3>He had eight turnovers. First words from Dan Hurley. Since

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<v Speaker 3>news are the Lakers pursuing him, he said he's impressed

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<v Speaker 3>by the Lakers, but loves coaching Yukon. Hurley says he'll

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<v Speaker 3>make his decision today whether to change jobs at the stadium.

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<v Speaker 3>Yankee Salva was one of the Dodgers winning six to

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<v Speaker 3>four big three run homer six ending by Trent Grisham,

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<v Speaker 3>who filled in all weekend for the still injured one

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<v Speaker 3>so another homer for Aaron Judges, twenty fourth. He's hit

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<v Speaker 3>eighteen in his last thirty four games. And London Mets

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<v Speaker 3>didn't take their first lead till the ninetheenning then held

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<v Speaker 3>on to the bottom of the game ending double play.

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<v Speaker 3>They beat the Phillies six to five, Red Sox back

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<v Speaker 3>to five hundred, beat the White Sox in ten innings

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<v Speaker 3>Nationals a seven run fourth inning to meet Atlanta eight five,

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<v Speaker 3>and the Oils finished to sweep at Tampa Bay ninety

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<v Speaker 3>two Grand Slam for Adlie Ruschman. Twenty one year old

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<v Speaker 3>Carlos Alcarez, the youngest to win Grand Slams on three

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<v Speaker 3>different services, took the French Open final with Sasha Za

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<v Speaker 3>Savera of coming back to the two sets to one deficit.

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<v Speaker 3>He had done that in the semifinals as well. Scotti

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<v Speaker 3>Scheffler won Memorial Golf in Ohio, his fifth win of

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<v Speaker 3>the year. John Stashedwer Bloomberry's.

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<v Speaker 4>Fourteen Coast to Coast on Bloomberg Radio nationwide on Sirius XM,

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<v Speaker 4>and around the world on Bloomberg dot Com and the

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<v Speaker 4>Bloomberg Business app.

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<v Speaker 1>This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. It

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<v Speaker 1>is attack to the right in Europe. Far right parties

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<v Speaker 1>have handed massive defeats to German chants. They're all off

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<v Speaker 1>Schultze and French President Emanuel mcclo in European Union elections

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<v Speaker 1>over the weekend, and now mcclo is calling early elections

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<v Speaker 1>of his own to try to stop the rise of

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<v Speaker 1>his right wing rival perennial rival Marine Lapine in France.

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<v Speaker 1>And for more we are joined by Bloomberg Daybreak Europe

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<v Speaker 1>anchor Stephen Carroll, who has been very busy covering the

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<v Speaker 1>EU elections for US from Brussels. Stephen, good morning. I

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<v Speaker 1>think we knew going in that centrist parties were vulnerable,

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<v Speaker 1>but just how much of a surprise was this result

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<v Speaker 1>for the far right of really sweeping things in Germany

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<v Speaker 1>and France.

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<v Speaker 8>Well, that's what's really interesting, Nathan about this story is

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<v Speaker 8>that actually the center held its majority in the European Parliament.

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<v Speaker 8>So in a big pan European picture, not that much

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<v Speaker 8>change for the parties that have been in power and

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<v Speaker 8>that are likely to stay in power at least being

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<v Speaker 8>able to nominate a European Commission president and for the

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<v Speaker 8>next five years in the EU. It's the individual country

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<v Speaker 8>stories where we're seeing those sort of reactions. So you

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<v Speaker 8>mentioned Germany. The party of Olas Schultz, the chancellor in Germany,

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<v Speaker 8>had its worst performance ever in a European parliament election.

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<v Speaker 8>We saw an increase in support to the AfD, the

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<v Speaker 8>far right party there, but also a shift to voters

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<v Speaker 8>back to the CDU, the Christian Democrats, the party formerly

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<v Speaker 8>of Angelo Merkel, so a shift towards the center right

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<v Speaker 8>among voters there as well, the Greens too being punished

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<v Speaker 8>in Germany. The French result is particularly interesting because, actually,

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<v Speaker 8>if you compare it to opinion polls, the score that

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<v Speaker 8>Emmanuel Macron's party got of just under fifteen percent and

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<v Speaker 8>the score that Marie Le Penz party got on the

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<v Speaker 8>far right of around thirty two percent, isn't that far

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<v Speaker 8>off what polls were predicting. Even the surprise was what

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<v Speaker 8>Emmanuel Macron decided to do about it. He's calling legislative

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<v Speaker 8>elections that will happen now at the end of this

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<v Speaker 8>month as two rounds of voting, so the thirtieth of

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<v Speaker 8>June and the seventh of July, giving voter the chance

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<v Speaker 8>to elect a new National Parliament and perhaps setting up

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<v Speaker 8>one of these really wonderfully French political situations. It's called cohabitation.

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<v Speaker 8>That's where you get a president from one party and

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<v Speaker 8>a prime minister from another. He's essentially saying to the electorate,

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<v Speaker 8>if you want to give the National Rally Party, that

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<v Speaker 8>party of Marrying lapenat chance to govern, here's their chance.

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<v Speaker 8>Knowing full well that he as president is safe in

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<v Speaker 8>his job and he'll still remain retain a line share

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<v Speaker 8>of the power.

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<v Speaker 1>Yeah, what a fascinating move by the French president. It

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<v Speaker 1>almost seems like it's becoming a theme in Europe. I mean,

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<v Speaker 1>we saw Richie Sunek just a few weeks ago call

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<v Speaker 1>an early election when his chips were down. I mean,

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<v Speaker 1>how big a surprise is this that Emanuel mccrawl would

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<v Speaker 1>call the snap election just a few hours after the

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<v Speaker 1>results came in in Brussels.

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<v Speaker 8>We're told from our sources in Paris that in fact,

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<v Speaker 8>very few people, even within Emmanuel Macron's own circle, knew

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<v Speaker 8>that this was coming until the last minute. So this

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<v Speaker 8>was part obviously of Emmanuel macron strategy. He wanted to

0:14:10.440 --> 0:14:13.400
<v Speaker 8>also surprise the electorate. If you think about it and

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<v Speaker 8>take a step back, though, it's perhaps not that surprising

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<v Speaker 8>because Emmanuel Macron, although his party is the largest in

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<v Speaker 8>the French Parliament, doesn't have a majority and they've been

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<v Speaker 8>struggling to get some key measures through the parliament so far.

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<v Speaker 8>So the idea of throwing it open to an election,

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<v Speaker 8>it wasn't entirely off the cars the cards. Rather, before

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<v Speaker 8>this election, but he's taking a gamble. Some are calling

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<v Speaker 8>it an audaciously bold step. Some are saying that it's

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<v Speaker 8>a really big risk for Emmanuel Macron.

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<v Speaker 1>Does this put the pressure on Germany's Chancellor all Off

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<v Speaker 1>Schultz as well to call earlier elections given the result

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<v Speaker 1>against his party.

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<v Speaker 8>Not quite, because the political system works in a slightly

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<v Speaker 8>different way in Germany. So actually pulling this sort of

0:14:57.680 --> 0:15:01.560
<v Speaker 8>move wouldn't work under the German system because Olaf Schultz

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<v Speaker 8>would lose power, whereas with Emmanuel Macron, because the Parliament

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<v Speaker 8>only has some of the power and most of it

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<v Speaker 8>lies with the president. Emmanuel Macron can do this knowing

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<v Speaker 8>that he'll still be able to function as a president,

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<v Speaker 8>although weakened in his role as head of state, whereas

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<v Speaker 8>if Olaf Schultz did the same thing and lost the election,

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<v Speaker 8>he would be out as chancellor and someone else would

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<v Speaker 8>get in. So it speaks to the intricacies the individualities

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<v Speaker 8>of the European political systems as well. It's worth pointing

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<v Speaker 8>out that not all incumbents had a bad day. Georgia

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<v Speaker 8>Maloney in Italy, her party is extremely well in these

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<v Speaker 8>European elections, and in Spain, Pedro Sanchez managed to hold

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<v Speaker 8>on to his level of support for his party. They

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<v Speaker 8>came second, But when you look at what's happening over

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<v Speaker 8>the border in France, I think perhaps he could be

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<v Speaker 8>quite relieved that he came second in these elections.

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<v Speaker 1>So just in our last thirty second, Stephen, what could

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<v Speaker 1>these results mean for cohesion in the European Union.

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<v Speaker 8>The European Union looks like it will proceed to nominate

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<v Speaker 8>our slavanderline as the next European Commission President. That's in

0:15:59.080 --> 0:16:01.520
<v Speaker 8>the gift of the leader. Then it goes to the Parliament,

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<v Speaker 8>but on the numbers, they have the numbers in Parliament

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<v Speaker 8>to be able to pass their the European commissioned President.

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<v Speaker 8>But I've always with European politics, plenty can change between

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<v Speaker 8>now and then.

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<v Speaker 1>This is Bloomberg Daybreak Today, your morning brief on the

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