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 began the first trading day of the month of June with Memestocks on the move. Let's get the latest with Bloomberg's John Tucker, John.
Yeah, Nathan. GameStop shares rocketing higher this morning. This comes after the Reddit account that drove the meanstock Manium twenty twenty one posted what appeared to be a one hundred and sixteen million dollar position in the game retailer. A screen shot by Keith Gill shows five million cheers bought
a twenty one twenty seven per share. The screen shot, which also included one hundred twenty thousand call options, couldn't be verified on social media, Gil, using his account handle Roaring Kitty, also posted an image of an Uno reverse cord, the post that attracted more than four and a half million views in about five hours. You'll recall that back in mid May, Gil returned to x with an image of a video game person leaning in, fueling anticipation is
going to actively return to the market. Well other medium stocks they're also getting a boost and shares of Game Stop. We'll I'll start there. They are upright now sixty nine percent. Shares of AMC Entertainment they're up twenty six percent. I'm John Tucker, Bloomberg Radio.
Right, John, thank you. But we're also seeing in Nvidia shares on the move. They're up almost three percent. The company has plenty to upgrade its AI accelerator chips every year as it seeks to broaden its customer base beyond cloud computing giants. CEO Jensen Wong announced a new Blackwell Ulter chip for next year and the development of an AI platform called Rubin for twenty twenty six for future laptop.
Your future PC will become an AI. You'll be constantly helping you, assisting.
You in the background. The PC will also run applications that are enhanced by an.
Your PC will.
Also post applications with digital humans that are as.
In Vidia CEO Jensen Wong was speaking at the Computex conference in Taiwan. He compared the rise of AI to the Industrial Revolution.
And not to be outdone, Karen Advanced micro Devices is speeding up introductions of new artificial intelligence processors as it seeks to dent in Vidia's domination of that lucrative market. AMD's CEO Lisa Sue was also at the Computex conference in Taiwan. She says the MII three twenty five X will go on sale in the fourth quarter.
Well.
Nathan Stocks in India search to our record after exit polls signaled an emphatic victory for Prime Minister Narendra Modi's ruling party. Winning by a landslide would enable Modi's party to push through policies that are seen as crucial by some investors for boosting India's economic growth, already among the world's fastest.
And another important election we're looking at this morning. Karen is in South Africa. The ruling African National Congress has now begun talks with its rivals to form a government. The move comes after the party lost its parliamentary majority for the first time since Nelson Mandela led it to power at the end of apartheid in nineteen ninety four. And See leader Serril Ramaposa says the result is assigned. The South African people wanted more cooperation among major parties.
What this election has made plain is that the people of South Africa expect their leaders to work together to meet their needs. They expect the parties for which they have voted to act and work together for the good of everyone.
Ramaposa's ANC got a vote share of just over forty percent. That's down from more than fifty seven percent five years ago.
Well, Nathan to the latest from the Middle East. Now, the White House is continuing to push what it says is an Israeli proposal to end the war with Hamas. National Security spokesman John Kirby discussed it on ABC's This Week.
Where we are right now? Is that propose? An Israeli proposal has been given to Hamas. It was done on Thursday night our time. We're waiting for an official response from Hamas. We would note that publicly Hamas officials came out and welcomed this proposal. So what would we hope happen is they would agree to start Phase one as soon as possible.
Why how Spokesman John Kirby says that Phase one would be a six week truce where hostages and prisoners would be exchanged, followed by a second phase focused on a permanent ceasefire, then major reconstruction in Gaza. But is really prime Minister Benjamin et Yaho says the plan he's agreed to does not include a permanent ceasefire. In a statement, he says that would be a non starters. Samasa's capabilities are destroyed in all hostages are freed first.
In other political news, Karen Donald Trump's legal team is now confirming it is readying an appeal to his recent convictions in the hush money trial. We get that story from Bloomberg's Ed Baxter.
Trump attorney Will Sharp says it deals with judicial fairness.
We're going to speedily appeal this unjust verdict. I think this case is replete with reversible error. We plan to vigorously defend President Trump's rights in the appellate courts all the way up to the US Supreme Court if necessary.
On ABC has heard on Bloomberg saying problems with jury instruction and denial of change of venue. Congressman Adam Schiff, co chair of the January sixth Committee, says the reaction to venue is simple.
If you don't want to be tried in front of a New York jera, then maybe don't commit so many crimes in New York City.
Shiff says he sees no grounds for appeal, does say the whole process will definitely take beyond election day. Head Baxter Bloomberg Radio, All.
Right, ed, thank you well.
As survey by Bloomberg shows that investors are worried about the Federal reserves independence if Donald Trump is re elected as president in November. Forty four percent of those responding to Our Market's Live Paul survey said they expect the former president to politicize the Central Bank or limit its
power if he returns to the White House. They also expect volatility in the bond market in the event of a Trump victory, with around a quarter seeing the ten year treasure Yell jumping by more than twenty five basis points.
And speaking of the Fed, Karen, we're getting more signals that the Central Bank is going to stand pat for a while. Minneapolis Fed President Neil Cashcari tells The Financial Times the Fed will likely keep interest rates on hold for an extended period of time. He says new economic data will need to convince policymakers that inflation is on the way down.
Well, Nathan, we have some deal news to get you caught up on this morning. Bloomberg News has learned film producer David Ellison's latest offer for Paramount Global includes an option for non voting shareholders to cash out a portion of their stock for about fifteen dollars a share. The offer, roughly twenty six percent premium to Friday's closing price, is for only some of the shares. The cash payout is the latest attempt by Ellison to sweeten the terms of
a deal that has faced opposition from some investors. Shares a Paramount up around four percent.
This morning, and another stock on the move this morning is Stereocycle Karen. Those shares are up about four and a half percent. The Wall Street journals reporting the Waste Management is close to a deal to buy that medical waste disposal company.
And it's time now for a look at some of the other stories making news in New York and around the world.
And for that we're joined by Bloomberg's Michael Barr. Michael, Good Morning, Good morning, Karen.
Mexico's projected election winner, Claudia Shanebaum, will become the first woman president in the country's two hundred year history, making The climate scientist and former Mexico City mayor said last night that her two competitors had called her and conceded her victory. Shane Baum had between fifty eight and almost sixty one percent of the vote. For the first time ever, Mexican nationals living in the Chicago area were allowed to cast their vote at the Consulate General in the city.
Hundreds lined up all day waiting for hours to cast their ballot, including this woman.
For me, It's the most important election of my lifetime.
Shane Baum said that the voting had been peaceful, but Mexico's largest ever elections were also the deadliest in its modern history for the tax carried out against candidates and people close to them. Jerry's election is set to begin today, and the federal gun case against President Joe Biden's son, after a deal with prosecutors fell apart. They would have avoided the spectacle of a trial so close to the
twenty twenty four election. Hunter Biden has been charged with lying on federal gun purchase forms when he said he wasn't a drug addict. He has pleaded not guilty. Hunter Biden is also facing a separate trial in California in September on charges of failing to pay one point four million dollars in taxes more than sixty US World War II veterans arrived in Paris over the weekend to participate
in ceremonies marking the eightieth anniversary of D Day. The youngest World War Two veteran on the American Airlines flight from Dallas to Paris was ninety six, the oldest one hundred and seven. The group was welcomed by Philippe and Tienne, president of Mission Liberation, a former French ambassador to the US.
Your presence here in France symbolizes not only the spirit of fraternity and solidarity that prevailed during those dark years, but also the unbreakable alliance between our two nations.
The former French ambassador also says there were also two Rosy the Riveters among the veterans, representing women who worked in factories and shipyards during the war. Global News twenty four hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr. This is Bloomberg hererott.
Ory, Michael Barr.
Thank you.
Time now for the Bloomberg Sports Update with John Stanshauer Junk of Morning.
Good Morning Karen. The Yankees just spent ten days in California. They won two of three in San Diego. Took two of three at Anaheim, and it looked like that was how the series was going to go. In San Francisco, the Yanks trailed in the nineteen eight Here what oh.
Swinging a fly ball deep white field Stretchky.
Turns and what is it?
It is?
God?
Go ahead?
Two roun bless by one Sodo.
He gives the Yankees the lead in the top of the nine, going over the twenty four foot high wall and right.
On Wfan So it was the last part of a four run rally. Yanks beat the Giants seven to five for a series sweep and a seven and two road trip. Soto had earlier homeward in the first inning a city field. Arizona's Kettle Marte also homeward in the first and the ninth, two runs shown off Jake Diekman a rally. The Diamondbacks passed the Mets five to four. To the Mets when nine and nineteen in May, they're zero and two. In June, Red Sox blew with three nothing. Lee lost in Detroit
eight to four ten innings. Nationals won five two in Cleveland. The Ools is just their second loss in the last ten. Beaten by Tampa Bay four to three. It'll be the Panthers and Oilers playing for the Stanley Cup. It'll be the longest distance between the two cities in Cup final history and Edmonton Oilers scored twice in the first period that was enough to finish off Dallas two to one, taking in the West Final four games to two. At the front j Open fourth round wins breonnic Cinner and
Carlos alcaaz Novak. Djokovic placed today, back from his third round win that took four and a half hours and ended at three am Paris time. The lefty from Scotland, Robert McIntyre's first PGA win in Canada. He won with his father as his caddie. Yukusasso won the US Women's Open for the second time. She's only twenty two. Some own biles now twenty seven. She won the US Gymnastics title for the ninth time. Next up the Olympic Trials next month. John Stasheward Bloomberg Sports Cannon Nathan.
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 on Nathan Hager. As we head into a new trading month, the market is feeling a bit like twenty twenty one. This morning, meme names are seeing the biggest moves after the investing influencer known as Roaring Kitty posted but it looks like a big position in game Stop and other stocks that retail investors piled into three years ago are soaring off the back of it. For more on this, what else do
you watch for? As we kick off the month of June, we were pleased to be joined by Dennis Gartman, the chairman of the University of Akron Endowment Investment Committee and the former publisher of the Gartman Letter. Dennis, Good morning. Is it twenty twenty one all over again?
Good morning Nathan, And yes, it seems it's twenty twenty one all over again with the Roaring Kitty back on the front pages. I find it a little disconcerting to think that once again he's back. Once again. The means trading is back to the forefront. That's always to me indicative of a market that's making a top, not the
market that's making a bottom. The fact that when the public comes in aggressively, and trades means stocks trades, spacks, trades, single day options, trades, over the counterstocks trades less than dollar stocks at the high rate. That's always disconcerting to me, and I think it should be disconcerting to everybody else. But this is twenty twenty one again, and here we are one more time.
Is that the biggest indicator for you that we could be seeing a top to this market? Or are there other things that you're looking at that signal that for you?
Fundamentals dictate where the market goes over broad terms, Technicals dictate where the market goes over short term terms. And to me, one of the most important circumstances that we saw technically was two weeks ago we had an outside reversal day in the S and P and the NASDAC. That's when you go to a new of all time high trade lower on the day trade below the previous day is low, and do it on large volume. We had outside reversal days, and those are usually not always,
but usually indicative of market tops. To me, that was important. That was an important circumstance to pay attention to. So I think that's still driving things. What bothers me about the stock market is that on rallies, volume is declining. On declines, volume is advancing, and that too is very so. The technical seem to be getting sloppy at best at this point, and I think being I'm actually on the lines for the first time in a long period of
time and comfortable being there. I'm on the sidelines in gold, I'm on the sidelines and bonds. I'm on the sidelines in stocks because I find things very disconcerting, very confusing, and the sideline seems to me to be the safest harbor at this point. Sidelines being cash and less than two year notes.
How long do you think you're going to stay on the sidelines tennis?
Until I come off the sidelines. That's the best answer I can That's the best answer I can give you at this point. I probably I tried being modestly, very marginally short beginning two weeks ago and got stopped out on Friday, which and I took a very small profit. I may be on the sidelines for a protracted period of time, certainly through the summer and through the period of time before the Fed begins the process of easing monetary policy and taking the overnight FED funds rate lower.
That's going to be until after the election this year, so I may be on the sidelines in prohibitive terms for a protracted period of time.
After the election. That still leaves the possibility that the Fed could make a move lower before the year is out. Are you still keeping a December rate move on the table?
I think it's if we have one, it'll be the the FMC meeting one day after the the the elections in early November. I think that's the possibility. Would would be that that would be the best time for them
to make a move. But you have to remember a year ago, the consensus was that there'd be five to six, maybe even seven cuts in the overnight head funds rate, And in the to the bi weekly that I send to friends and former clients of newsletter, I maintained at that time that we have at most one, maybe two cuts in the overnight FED funds rate, which seemed to be almost laughable. And it's in its differentiation from the
from the broadcast census. And I still think that we we at mostly will get one cut in the overnight SAD funds right, and I think that comes into November meeting, maybe maybe two but I have my doubts substantively. I think it'll be a protective period of time before the seed begins the process of taking the SAD funds right back towards three percent over the course the next several years.
This is Bloomberg day Break Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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