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Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
The markets and gold enter the trading day in record territory. It's after the Fed signal that remains on track for three interest right cuts this year. The recent pickup and inflation did not sway FED share j Powell's message that it is likely appropriate to lower rates.
We believe that our policy rate is likely at its peak for this tightening cycle, and that if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year. The economic outlook is uncertain, however, and we remain highly attentive to inflation risks.
Chairman Powell also said it would be appropriate to slow the pace at which the FED reduces its bond holdings fairly soon.
Reaction is still pouring into the Fed maintaining its rate cutout look. We caught up with former New York Fed President and current Bloomberg Opinion columnist Bill Dudley.
We still think mantary policy is tight. We still think we're going to get more confident about getting inflation down to two percent, and so we still think we're going to cut rates this year time. He's uncertain, and he said over and over again, it depends on the data.
And former New York Fed President Bill Dudley added that he thinks the Fed is still committed to getting inflation down to two percent, so, Karen.
While the Fed held steady yesterday, there's been a surprise from the Swiss National Bank. It unexpectedly cut rates a quarter point to one point five percent. The Frank tumbled after the decision, falling more than one percent against the dollar. Later this morning, the Bank of England is likely to keep its interest rates at a sixteen year high.
Well staying in Europe. And Nathan job cuts coming to Berkley's. Bloomberg News has learned the UK lender is preparing to cut several hundred jobs within its investment bank division. The move comes as the firm embarks on a year's long effort to trim costs and boost profits within the unit.
And we're looking at the pair of initial public offerings this morning, Karen, it was quite the Wall Street debut for Esterra Labs. The semiconductor connectivity company, soared more than seventy percent on its first day of trading, giving a Stera a market value of almost nine and a half billion dollars.
And today, Nathan, another highly anticipated IPO hits the market. We get the details from Bloomberg's John Tucker, John and Karen.
Reddit begins trading after pricing its IPO with thirty four dollars a share that's the top of the expected range. The offering values to the company at almost six and a half billion dollars. That website that hosts millions of online forums, is nineteen years old and has a fiercely loyal customer base. While its core business is online advertising, the real attraction is the ability to train artificial intelligence models.
Bloomberg intelligence analysts expect big providers like open Ai, Google, Apple, Amazon, and Meta to pay for Reddit's data. They expected to eventually fetch them multiple closer to ten billion dollars. The ticker symbol again RDDT, John Tucker, Bloomberg Radio.
Looking at some other company news, Karen, The Justice Department is planning to file a lawsuit against Apple, perhaps as soon as today. More from Bloomberg's Doug Prisner, we're told Apple will be accused of violating antitrust laws by blocking rivals from accessing hardware and software features on the iPhone. The case will mark the third time the dojsuit Apple for anti trust violations in the past fourteen years, but this case is the first to accuse the company of
illegally maintaining its dominant position. Apple is also under increased scrutiny in Europe over alleged anti competitive behavior. Earlier this month, the company was hit with a two billion dollar fine for shutting out music streaming rivals from offering cheaper deals in New York. I'm Doug Prisoner Bloomberg Radio.
Okay, Doug. Thanks.
Looking at shares of Apple and the pre market. They are down one percent.
Well on the flip side, and Nathan shares a Micron Technology surging more than sixteen percent. The company delivering a strong revenue forecast for the current quarter. We get the story from Bloomberg's Charlie Pillett.
Micron is the largest American maker of computer memory chips, and it was boosted by demand for artificial intelligence hardware. Micron Technology said fiscal third quarter revenue will be in the range of six point four to six point eight billion dollars that compares with an average analyssessimate of five point nine to nine billion micron and its rivals are emerging from one of the worst slumps the memory chip industry has suffered, triggered by weak demand for PCs and smartphones.
In New York, Charlie Pellett, Bloomberg Radio, All right, Charlie, thank you. Turning to politics now.
The text is out on the deal to keep most government agencies open through the end of September. We get the details from Bloomberg. Steve Podisk in Washington.
The one point two trillion dollar package is backed by President Biden and leaders of both parties, and comes before a Saturday deadline for a partial gu government shutdown. It expands detention facilities for migrants, imposes a six percent funding cut on the State Department and Foreign Aid, and bans US embassies from flying LGBTQ Pride flags or other non
US official flags. The spending bill funds roughly three quarters of US agency budgets, including the Departments of Defense and Homeland Security, for the remainder of the federal fiscal year. Congress approved funding for the other agencies earlier this month. In Washington, Steve Podisk Bloomberg Radio.
All right, Steve, thanks, So he turned to geopolitics now, and the US is now pushing for an immediate ceasefire in Gaza, tied to the release of hostages held by Hamas. Secretary of State Anthony Blincoln says the US is circulating a draft resolution at the UN Security Council calling for a ceasefire. He made the announcement in Saudi Arabia, where State Department spokesman and Veden Patel says he urged Israel to exercise caution.
There should be no full scale military operation and RAFA without a credible and executable plan to protect the civilian opera, civilian population.
And Vadam Patanel is at the State Department. Till now, the US has used its veto power at the UN to block calls for an immediate ceasefire in Gaza.
Thank Karin.
Another top Biden administration official is on a surprise trip to Ukraine. National Security Advisor Jake Sullivan is in Kiev, where he promised the House will approve sixty billion dollars installed AID. Here's White House National Security spokesman John Kirby.
Distrusted the urgent need for the US House of Representatives to pass the National Security Supplemental to meet Ukraine's critical battlefield and humanitarian needs.
White House spokesman John Kirby spoke aboard Air Force One. Meanwhile, Kiev woke up this morning to its first large scale attack from Russia in more than a month. Ukraine says it shot down thirty one missiles that Russia fired on the capital today.
Thirteen people were hurt.
And we turned out to some of the other stories making news in New York and around the world, and for that we're joined by Bloomberg's and Michael Barr.
Michael, good Morning, Good morning, Karen.
In Haiti, arm gangs are launching deadly new attacks in the suburbs of Porter of Prince. People under fire are pleading for help from Haiti's National Police Force. Meanwhile, a Florida State chartered plane from Haiti arrived yesterday at Orlando's Sandford International Airport after evacuating about fourteen individuals trapped in the country amid the ongoing humanitarian crisis. This man's son was rescued.
It was very stressful. I can happily say was a mission accomplished and we're finally reunited with junion, our two year old son, that these were turning into weeks, the weeks were turning into months.
Florida Executive Director of Emergency Management Kevin Guthrie.
You obviously saw tears, you saw laughter, you saw joy.
I'll tell you there's.
Nothing more gratifying as name of director than to see that.
Emergency Management Director Kevin Guthrie says hundreds of Floridians are seeking evacuation from the country. A charter bus company that transport its migrants from Texas to the New York area has agreed to stop doing that for now. It comes as a lawsuit is pending against road Runner Charners. The New York City Department of Social Services filed a lawsuit against Roadrunner and more than a dozen other bus companies.
According to the suit, the charter bus companies are implementing Texas Governor Abbott's bad faith plan to bring migrants to New York and should be held liable for the city's costs of care. Former President Donald Trump is running out of time to at least post a bond to appeal as New York civil fraud judgment. By Monday, Trump could be forced to surrender some of his properties to help
pay the four hundred and fifty four million dollars. Trump's lawyers have claimed that more than thirty insurance companies rejected his bond bids, but New York Attorney General Letitia James dismissed their argument that he can't find the money, saying there is nothing unusual about even billion dollar judgments being for bonded.
If he does not have funds to pay off the judgment, and then we will seek judgment enforcement mechanisms in court, and we will ask the judge to seize his assets.
It's part of last month's ruling accusing Trump and others of deceiving banks and insurers by inflating his wealth. And October eighth trial date is set in the case of a marine veteran charged with manslaughter and the chokehold death of a subway writer in New York City. Witnesses say Daniel Penny, who was twenty five, was restraining Jordan Neeley
after Neely was acting erratically on the train. President Joe Biden says he is for giving nearly six billion dollars in federal student net for almost seventy eight thousand Americans working in public service. Biden says. Those helped include teachers, nurses, and firefighters. Global news twenty four hours a day and whenever you want it with the Bloomberg News. Now, I'm Michael Barr, and this is Bloomberg Karen.
All right, Michael Barr, thank you. It's time now for the Bloomberg Sports Update, brought to you by Tri State Outie, and we bring in John stash Hour.
John.
Good morning, morning, Karen. Get out your brackets. NCAA tournament againzine Ernest Today. Games in Pittsburgh, Charlotte, Omahon, Salt Lake City.
The Wagner Seahawks, who.
Got their first ever NCAA win the other night, will try to be the third ever sixteen seed to beat a one. They take it on North Carolina. Saint Peter's shopped the world two years ago with a Cinderella run to the Elite eighth. The Peacocks are back as a fifteen seed. They'll take on Tennessee and Dayton. Colorado took out Boise State. Grambling had never before played an nc
DOUBLEA game. Now moving on with an overtime win over Montana State, Celtics r up by twenty one held on beat the Bucks in Boston won twenty two to one.
Nineteen.
Milwaukee was without the Injurediannis under the company. These are the top two teams in the East, but the Celtics are eleven games ahead. Warriors beat Memphis. Nicks go for a four to zero road trip tonight in Denver. The Rangers visit Boston. The Capitol is lost in Toronto. Seven in Tampa. Not a bad night for the Yankees. Gihnty Carlos Stanton, who comes off such a down season. Two run homer in the first inning, grand slam in the second, another two run shot on the fourth. The Yankees beat
the Firates twelve to nothing. Aaron Judge was back in the lineup first time in ten days. The Dodgers and Padres are back this morning in Seoul. LA won the season opener five to two. Shoeotani had a couple of hits in his Dodger debut, his new teammate with rookie Betts.
You know, really just seeing him get work, seeing him just do simple things, well what I think, it's simple, just better than everybody else's. It's really neat. It's really neat to see. But I'm really looking forward to seeing all the things that he's gonna accomplish. But I haven't really got to really dive in and see some eye opening stuff, but I know it's coming really soon.
And Otani's in the news because his longtime interpreter, who we had a very close relationship with, has been fired. He's been accused of stealing millions from Otani to pay for gambling debts. John Stansheward, Bloomberg Sports.
Now, let's get more on the FED decision, the latest pause from chairman Howe and company. Jennifer Lee is with us now, the senior economist at BMO Capital Markets. Boy, Jen, sure, sounds like the fed's bias is toward rate cuts. What did you make of the messaging from a chairman powelling company?
Oh, well, good morning and thanks for having me on. You know, my first thought was, okay, so you guys raised GDP, you lowered unemployment, and you raised your core PC this flater forecast, and yet you're still looking for, you know, only three rate cuts, which I thought was quite interesting and I was confused, you know, but it sounds almost like a glory loog situation. You know, the soft landing narrative is generally playing out in the in
their mind. But what was interesting is that I also thought that because the fact that he was very cautious still and then he said that there was still very much two sided risks to this whole thing. So it's still you know, patience is definitely still the narrative I guess of today.
I think I hear a little bit of skepticism in your tone of the soft landing narrative.
Am I right to hear that?
You know?
I hate to say this, but I mean I would love to have that soft landing, But sometimes I wonder what are we missing? What could go wrong? And and you know, I mean, so the problem is that ifflation does remain still sticky. You know, there's a possibility that we could see you know, fewer rate cuts than what's still priced in right now. I mean, it's still fairly early in the in the year, so you know, a lot and a lot of things could you know, potentially
I think, go wrong. So we'll have to stay very cautious and nimble is another key word that we use these days, and see how things play out. But right now, you know, I think we're pretty comfortable with our first rate cut call of July.
In July as a post to June, can you go a little bit more into what you're seeing that has you thinking that maybe inflation could be a little stickier than the Chairman Palace seemed to indicate when he sort of shrugged off the hot raids we've had over the last couple of months.
I think we're going to just need like a few more and only because you know, we've had two surprise inflation reading is one was like super hot in January and then we you know, everyone including us thought there would be some reversal in February, and we didn't see that in both the CPI and the PPI. So this is where, you know, this is where we're already keep an eye on things, especially on the end the wage front as well, even though wage it's had been coming down.
But you know, the good news is, you know, that's it's great for consumers. It's great for workers that they have an income, that they have money coming in still the help support spending and whether or they're going to spend it all, you know that will remain to be seen. You know, you don't have to spend it all. It can keep it all for a rainy day. But again, I think just keeping an eye on the overall molebentim
of the consumer. You know, we obviously class of sowing in retail sales growth over the last over the beginning of the year, so see how that plays out. So this is what we're kind of keeping eye on, is particularly the consumer and the strength of the consumer.
Does the dot plot support the tone that we heard from Chairman Pale. It seemed like more FED voters were calling for just two cuts this year and the media next year is only three.
Yeah, so that was kind of interesting. So it's you know, Celtics, so more a few more of the officials are are also questioning, you know, the number of of of moves, but it can also swing the other way. And it's interesting because Bill Dudley yesterday afterwards was also sort of downplaying the role of the dot plots even though everyone always you know, watches out very carefully. But I find that FED officials always sorted be very cautious where of
watching too much into the dots. But you know, that's all we have to go by to see what what the officials are the committee overall is thinking. But overall, you know, the meeting is still for three cuts and and you know, I think that's still a fair assessment, you know, until until it's not. And I hate it sound wishy washy, but that's you know, we're all data dependent, We're all you know, we're not going on a meeting
by meeting basis. We're not calendar dependent, you know, as as President Leguard would say, so again, just keep watching the data, keep watching wages, and keep watching consumers.
Setting.
This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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