Biden-Trump Face Off in First Debate; Micron Slips on Earnings Miss

Bloomberg Audio, Studios, Podcasts, Radio News. Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.

Karen, we begin with the event political watchers have been waiting for for weeks and the candidates have been preparing for for days. The first debate between President Biden and Donald Trump is just hours away. Trump is already setting expectations.

Am I going to get affair?

Probably not, but it would be very good for CNN.

They're having a lot of ratings problems.

I think it would be very good for CNN.

Actually, now, the former president phoned into a black owned barber shop in Atlanta, the city where the debate is being held. Tonight, at CNN Studios, we have team coverage of the CNN presidential debate, beginning with Bloomberg's Joe Matthew, who says, this event's happening much earlier than usual in the election cycle.

There was clearly an effort here or thought by the Biden campaign that we do this early. Old Donald Trump's bluff on whether he even wanted to debate, and by the way, who knows if everyone shows up still, I'll believe it when I see it, but also to get to the age issues. They want to knock this thing down before we get into the throes of conventions.

Bloomberg's Joe Matthew says the debate could lead to missteps for Biden or Trump. They are both the oldest major party candidates to compete for the White House.

Well, Nathan.

The return to the debate stage for these two candidates comes with new rules, and Bloomberg's Ed Baxter has that part of the story.

The rules have been drafted by CNN and agreed to by both campaigns. First, moderators Jake Tapper, Dana Bash and their control room will have control of the mics, and the mics will be muted unless it is the candidate's turned to speak. Second, there will be no live studio audience to react to what traditionally have been called moments

Radio, All Righted, thanks, so, we invite you to join us for our special coverage of the CNN presidential debate. It begins at eight pm Wall Street Time with a special edition of Balance of Power with Joe Matthew and Kaylee Lines in Washington and David Gura in Atlanta. Listen to the debate on Bloomberg Radio or watch it on Bloomberg Television.

Karen, There's also a highly watched political showdown overseas. Keir Starmer and Rieschee Sunak had their final televised leaders debate of the UK general election campaign. Economic proposals featured heavily during the BBC event, as Labor leader Starmer set out his party's plans on taxes.

We have set out in our manifesto all of our plans, but we will not be increasing income tax, national insurance or VAT.

Kir Starmer also labeled the Prime Minister as out of touch with voters, while Reeschi Sunak retorted by questioning the clarity of Labour's own fiscal proposals.

I've set out my plans clearly and I appreciate actually that everyone's going to agree with me. Kissed Arma is not being straight with you about his plans to raise your taxes.

I don't think that's leadership.

Prime Minister Sunak also repeated previous claims that a labor government would raise the tax burden, which Starmer said was false.

MOI turned to the markets now, Nathan, and futures are lower following disappointing earnings from a high tech flyer. We get the latest from Bloomberg's John Tucker, John, good morning, and Karen.

Micron Technology shares down six percent pre market, the largest US maker of memory chips, delivering an outlook roughly in line with the average analyst estimate. Whe they're being punished for not outperforming the elevated expectations. The company says fourth quarter sales going to be as high as seven point eight billion dollars. Micron had rallied sixty seven percent this year before yesterday's close, lifted by expectations, is going to

All right, John, thank you, were also watching shares of International Paper. They are down fifteen percent in early trading. Brazil's Susano says it is ending its takeover pursuit of IP. Susano says it was never able to draw the company into serious engagement and wasn't willing to increase its offer. The decision removes a complication to International Papers plan to acquire D. S.

Smith.

Funny Than shares of Levi also taking a big hit this morning. They're down more than fifteen percent. The dena maker reported sales in its latest quarter that slightly missed expectations, underscoring Wall Street's high expectations for the company, and.

A big retailer overseas is taking it on the chin as well. This morning, Karen's Shares of H and Them are down thirteen percent. The fashion company reported weaker than expected profit for the second quarter and also said sales slumped at the start of June as poor weather kept shoppers at home.

Well, we're also following bank stocks this morning, Nathan. This after the country's biggest banks passed the Federal Reserve's annual stress test, and we get the details with Bloomberg's Charlie Pellett.

It paves the way for higher shareholder payouts as the industry awaits a water down version of a separate proposal for stricter capital rules. The FED said each firm stayed above its minimum capital requirements during a hypothetical recession. Altogether, the group would take nearly six hundred and eighty five billion dollars in losses, driving a larger drop in capital than in last year's scenario, but quote within the range

All right, Charlie.

Thanks.

In New Jersey, budget committees in the state Senate and Assembly have approved a tax hike on the largest companies doing business in the Garden States, expected to get a floor vote later this week. More on that from Bloomberg's Doug Prisner.

Leaders in the Democratic controlled legislature agree to the so called corporate Transit Fee. The aim is to help fund New Jersey's financially stressed public transportation system. It was pitched earlier this year in Governor Murphy's state budget, a two and a half percent fee will be added to the state's nine percent corporate tax rate on businesses with New Jersey net taxable income above ten million dollars. Now, around six hundred of the wealthiest companies names like Walmart and

Right, Doug, thank you all. Turning to the economy. Now, we are just one day away from the Fed's preferred inflation rating, the PCEE de Flator. Despite the results, Dominque Constam, the head of Macro Strategy and Mizoo Security, says the Fed should start cutting interest rates.

I would definitely be in the camp of, you know, cutting you know, two or three times this year and then you know, and then and then sort of adding another sort of hundred base point easing at least, you know, in the sort of first half of next year. I mean, policy is restrictive. Inflation does look some to me as is under control, and it's you know, the last thing you want is for to fall below target.

A zero security is dominant constant. Bloomberg Economics expects May's monthly core PCE inflation reading to be the slowest yet this year. And it's time now for a look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Michael Barr. Michael, good morning, Good.

Morning, Karen. It was a rough travel day at airports in New York and Washington, d C. Several major airports along the East Coast had to pause flights because of severe weather. Departures to Newark, Kennedy and LaGuardia airports were grounded until early this morning because of thunderstorms in the Washington area. Departures to the Baltimore, Dulles and Reagan airports

I'm so happy to be here with my daughter as we celebrate your families, those families that you're born into, the ones you build, and the ones you choose.

Hundreds of guests were on the South lawn for the event that also included live music. Heading to the US some VIPs very important pandas they are on their way to the San Diego Zoo from China as part of a thirty year alliance with the China Wildlife Conservation Association. The two giant pandas were often a send off ceremony Yesterday in the Chinese province of Shishwan, and it was attended by a number of Chinese and American dignitaries, including San Diego Mayor Todd Gloria.

On behalf of the San Diego Zoo Wildlife Alliance, and every San Diego is a profound honor to be entrusted with the care and conservation of these two giant handas Jun Chuan in Singtow.

Global News twenty four hours a day and whenever you want it with Bloomberg News. Now, I'm Michael Barr, and this is Bloomberg Karen.

BP's all right, Michael Barr, thank you, and it is time now for the Bloomberg Spores update. Here's John stash Hour.

John, Good morning, morning, Karen.

Pretty amazing how the tables have recently turned in New York baseball. Mets are hot Yankees or not. It was on full display in the two game Subway series at Cityfield, Mets one and both getting the sweep with a twelve to two route the night after hitting four.

Home runs, they hit three more.

Harrison Vader again homeward in both games against his old team, Francisco Alvarez, three hits. He had a two run homer later, Tyrone Taylor a three run shot. Mets had won fifteen of their last nineteen. They are at five hundred for the first time, is with May tenth. Their manager is Carlos Mendoza.

We wear a few weeks ago, you know, to be in this position now. He's important knowing that we still got work to do, and we got long ways to go, you know. But from theater, the same approach, one day at a time, one game at a time, one series out of time.

So the Yankees a little more than two weeks ago, they had played twenty series and only lost two. Since then, they played four series, lost them all three and nine in their last twelve games, and only bright Spot continues to be Aaron Judge. He hit his thirtieth home run. He's ahead of his face from two years ago when he hit sixty two. The Orioles ended a five game losing straight four to two over Cleveland, and Baltimore's only a game behind the Yanks. The NBA drafts first round

Can I neither.

Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.

Good morning.

I'm Nathan Hager. Willing last minute preparation for the first debate between President Biden and former President Trump's going to have to happen in the next few hours. The rematch begins tonight at nine pm Wall Street time of the CNN presidential debate and ahead of it. We're joined by Tina Fordham, the founder and geopolitical strategist at Fordham Global Foresight. Tina, good morning. I don't think we've had any two better known candidates heading into a debate than the tour they

Well more than debates typically do.

Right, So, first of all, the timing US presidential debate comes earlier in the cycle than normal, and there is more writing on this contest where we have so many registered independents and so many.

Voters who dislike both candidates.

When you have that level of dislike, though, I mean, with the coming this early, I mean, can this debate really have an impact on how voters come down in November?

Well, they definitely can.

This is the first time we'll see these two candidates side by side.

Since twenty twenty.

I think the level of the narrative is such that if Joe Biden manages to stand up and be sentient, he's winning. You know, such has been the low expectations for him, and the bar is lower for Trump. He's a reality TV star, of course, and he will get I think a huge points for making any kind of policy.

Discussion that's you know, that's that's.

Sane and credible, but it'll be a form of entertainment, especially for political junkies like me.

Yeah, these debates tend to be that way. I mean, we always look for the style points, But is there a chance for substance to break through in a format where the mics are going to be cut off when they're not talking and there's not going to be an audience.

So those are two unprecedented changes.

Trump of course thrives on his studio audience, and that's where there is room for, you know, surprises on the upside and the downside the cutting off of mics.

They both need to keep their cool.

Remember in the last debate, Joe Biden was heard muttering under his breath.

Shut up man.

You know. Will they get on each other's nerves or will they talk about the issues that matter most to Americans, which is the economy and.

Inflation and so on those issues in particular. Could we see this as a market moving event depending on what kinds of points the candidates make this evening.

I think one of them would have to suffer an extreme physical event for it to be market moving, and not that anyone wishes for that, but I think when we have such high disapproval ratings for both candidates and so many independents who dislike both, so called double haters, it's important.

Also the fact that the debate is taking.

Place before the conventions for the parties of July for Republicans in August for Democrats. There is some chance for what I call the Democrats kind of fantasy outcome to transpire, which is that if Biden looks like he's really not up to the job, could he be somehow convinced to stand down.

I consider that very low probability, but it's not zero.

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I'm Nathan Hager and.

I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day. Right here are on Bloomberg Daybreak