Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Amy Morris and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin with the race for the White House and the growing pressure on President Biden to step away from the campaign. Axios reports Senate Majority Leader Chuck Schumer is privately signaling his concerns to donors, indicating that he may be open to replacing Biden as the Democrats nominee. Senator Peter Welch of Vermont is the first Democratic senator
to call for Biden to exit the race. Welch wrote in a Washington Post op ed that while he has great respect for President Biden, it's time for him to step out of the race for the good of the country. This after former House Speaker Nancy Pelosi told MSNBC that only Biden could make that decision, but that the clock is ticking.
We're all encouraging him to make that decision because time is running short.
Top officials from the campaign are set to meet Senate Party members today, and now I made it a peerce.
Hollywood has turned on Biden heavy hitters, including Netflix chairman Reed Hastings, superagent Ari Emmanuel Airis, Abigail Disney, and author Stephen king Of joined the chorus calling on Biden to drop his reelection bid. Actor and lifelong Democrat George Clooney weighed in with an opinion piece in The New York Times, saying, quote, the damn has broken after he helped raise thirty million
dollars for Biden's re election campaign. Last month. Actor and director Rob Reiner chimed in on X saying that democracy faces an existential threat and Democrats need someone younger on the ticket to find back. We get inside from Henrietta Trace, a managing partner at Veda Partners.
The rank and file Democrats across the country, Independence moderates and particularly female voters have said repeatedly all year long they do not want another term.
For Joe Biden.
They do not believe that he is up to the task. And it's been the elites who have said, you know what, We're going to stick with this guy. The senators are behind in the House, members behind him, and now both tides are shifting, and I'm really just watching which senators, you know, from an office or a chamber where Biden operated for thirty six years, is going to make the decision to say, hey, you know what, thank you so much for your service, It's time to move on.
Henrietta Trece at Veda Partners thinks a final decision will be made on Biden in the next week.
As for the presumptive Republican presidential nominee, Donald Trump is scheduled to speak at a bitcoin conference later this month. Event organizer BTC Media says Trump will deliver the speech on July twenty seventh on the main stage of the Bitcoin twenty twenty four event in Nashville. The former president has increasingly highlighted Bitcoin on his campaign trail well.
Amy The NATO summit wraps up in Washington today. Last night, leaders use their strongest ever language to criticize China's military support for Russia in the Ukraine War. They called Beijing a decisive enabler that poses systemic challenges to euro Atlantic security. Again more from Bloomberg Managing editor Ben Sills.
This is pretty much in line with what we heard from the G seven in Italy last month. I think it reflects the fact that the intelligence that the Western allies are getting now and exactly the way Chinese suppliers are helping to equip the Russian war machine. I think that intelligence has become a lot clearer, a lot firmer, and as a result, the allies are becoming much more direct in their criticism of Beijing.
Bloomberg's Ben Sills or porest that a Chinese embassy spokesperson said China does not provide weapons to the parties in the conflict.
Let's turn now to the markets. Another day, another record for stocks. In fact, the world's biggest tech companies fueled the S and P five hundred and above fifty six hundred for the first time ever. Amy Wu Silverman is head of Derivative Strategy at RBC Capital Markets.
Historically, if you had said to investor, look where all time highs, this one secular theme is driving everything, and your cost of protection is at historical lows, that would certainly be compelling reasons to hedge. But what we're also not seeing is a lot of hedging, you know. So investors not only are not diversified in what they have in the market, they're also not using protection either.
Capital MARKETSA Amy Wu Silverman notes the S and B five hundred rows for a seventh straight data not thirty seventh record this year well.
I mean, the big event for markets comes later this morning, the release of a key inflation rapport. Economists are forecasting the core CPI to rise two tenths of a percent in June for a second month. Now would mark the smallest back to back gain since August. Feder Reserve Governor Lisa Cooke predictions inflation will cool with little damage to the labor market.
My baseline forecast, and that of many outside observers is that inflation will continue to move toward target over time without much further rise and unemployment.
Reserve Governor Lisa Cook made the comments. In Australia this morning. Swamps are pricing in two FED cuts this year, with a strong chance of the first coming in September.
The economy is also in focus overseas. In fact, the UK economy grew at double the pace expected in the month of May. GDP expanded by four tenths of a percent for the month. The economy was boosted by stronger than expected performance in construction and services.
On other news this morning, Amy Arcangos Capital Management founder Bill Huang has been found guilty of fraud and market manipulation. We get the details from Bloomberg Law host June Grosso.
A jury found Arcago's Capital Management founder Bill Huang guilty of ten criminal counts stepping from his firm's twenty twenty one collapse. Concluding a two month trial that captivated Wall Street, Huang was convicted of securities and market manipulation fraud in a scheme that prosecutors say cost global investment banks billions of dollars. He'll be sentenced on October twenty eighth. In New York, June Grosso, Bloomberg Radio.
Thank You June and in Company News City Group gets fined. The bank will pay one hundred and thirty six million dollars to US bank regulators over issues related to data quality management and risk controls. The Federal Reserve says the fines stem from back to back regulatory actions in October of twenty twenty.
Well Amy, Apple's biggest new product in years, is not expected to shake off its slow sales start into the release of a cheaper model next year. According to market tracker IDC, the thirty five hundred dollars Vision Pro mixed reality headset has yet to sell ten one hundred thousand units in a quarter since its launch in the US and February. The IDC also says Apple faces US seventy five percent drop in domestic sales him the current quarter.
And we are getting this headline crossing the Bloomberg on Apple, It's settled its EU antitrust probe over tap and pay technology. How we have a 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. Democratic Representative Alexandria Ocassio Cortes has filed separate articles of impeachment against Supreme Court Justices Clarence Thomas and Samuel Alito. The separate articles refer to conflicts of interest.
Ocassio Cortes says Thomas and Alito should have disclosed gifts from individuals with business before the Court, and she says they have failed to recuse themselves from cases where they or family members have ties which quote would be worthy of standard removal in any lower court.
The Constitution rightfully and explicitly holds justices to even higher standards than members of Congress or even the President.
The articles are not expected to advance in the Republican controlled House. Closing arguments will extend into a fourth day in the corruption trial of Senator Bob Menendez. Yesterday, a lawyer for the New Jersey Democrat told a federal jury in Manhattan that it would be a win for this country if it rejects the government's bribery case against his client. Attorney Adam Fee told the jury, this case it dies
here today. Prosecutor say Menendez and his wife used his political influence to benefit foreign governments and assisted three New Jersey businessmen in return four bribes. Testimony resumed today in Alec Baldwin's involuntary manslaughter trial. Baldwin is charged in the death of cinematographer Helena Hutchins, who was killed during a rehearsal on the set of Rust when prosecutors say Baldwin
fired a prop gun loaded with live ammunition. Prosecutor Alinda Johnson questioned crime scene technician Marissa Poppel, who was part of the investigation into the shooting and found live bullets at the movie set.
How many rounds altogether did you discover that you thought were suspected live rounds on the set?
Abreast five and the spent casing so.
Six in total.
Prosecutors argued Baldwin behaved recklessly, Baldwin's lawyer calling the deadly shooting a tragic accident, but arguing that Baldwin did not commit a crime, saying the actor never pulled the trigger. The current stretch of historic heat is doing more than just smashing records in the US. It is resulting in more Americans getting infected with dengay fever. States as far north as New York announcing cases of the tropical disease. Nearly two hundred infections now confirmed in New York and
New Jersey alone, usually spread by infected mosquitoes. Global News twenty four hours a day and whenever you want it with Bloomberg News Now, Michael Barn, This is Bloomberg Karen.
All right, Michael Barr, thank you time now for the Bloomberg Sports Update with John Stashauer.
Jan Good morning, Give morning, Karen. Is the All Star break approaches, the Mets find themselves over five hundreds, very much in the race for a wildcard playoff spots. Since June second, the Mets are twenty two and ten. Beat the Nationals at City Field sixty two one up with a four runs, six didn't. That included the Jose I Glaciers two run single the Mets rookie manager Carlos Mendoza.
We know where we at, you know, but still July, and I think the mindset here is, you know, okay, take care one day at a time, you know, take care of business today, take care business winning series, and let the team play out, you know, Let's continue to prepare, Let's continue to go out there and compete, Let's continue to have fun.
And that's what they're doing.
I mean, well, the Yankees a two to one win at Tampa Bay thanks to the bullpen. Four relievers Tim Hill, Luke Weaver, Tommy Cainley Clay Holmes combined for four and two thirds innings of scoreless relief with not only one hit. Just the Yanks seventh win in their last twenty four games.
And now we'll see they can win two in a row, asn't happened since a four game wins streak ended On June twelve, Oakland cooled off the Red Size five to two of the Orioles were shut out by the Cubs four nothing, sixtieth win for the Phillies four to three over the Dodgers, and Wimbledon. No Americans remains. Taylor Fritz was hoping to get to his first Grand stam semifinal. He had upset Alex Zaverevin. Now Fritz was the favorite, but he lost in five sets to the Italian Lorenzo Mussetti.
He'll now play Novak Djokovic or the Semis. Djokovic is fifteen years older and he'll be well rested. Didn't have to play his quarterfinal match. Alex de Minir had to pull out with a hip injury. They'll play the women's semifinals today in Las Vegas. First look at the US Olympic basketball team in eighty six to seventy two tune up win over Canada. The now off to Abu Dhabi
for two more exhibition games. A change on the US roster Kawhi Leonard no longer on the squad, replaced by Derek White, joining his Celtic teammates Jason Tatum.
And Drew Holliday.
There's news with the new NBA media deal. Reportedly it will last eleven years. It'll bring in seventy six billion dollars. Copa America semifinals and Charlotte Columbia top Uruguay one nil will play Argentina in the final. John Stashedwar Bloomberg Sports Kennedy.
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 Amy Morris. President Biden continues to face mounting opposition within his own party as a Senate Democrat has now joined a growing number of House lawmakers in calling on Biden to step aside from the campaign. And that's not all. We're joined now by the founder of Panjie Apology, Terry Haynes. Terry, good morning to you. Thanks for joining us. We know Vermont Senator Peter Welch has
called for Biden to exit the race. He did that in an op ed, But now we're hearing Axios is reporting that Senator Schumer, the Senate majority leader, may also be having some doubts.
Good morning, Amy. You know, I'm gonna take issue a little bit with the with the premise. You know, there's Biden certainly under some pressure from the party, But is he feeling a lot of pressure today? I doubt it. I mean, I'm sure they're all one, full alert and all that. But I doubt he's feeling a lot of pressure from one Senator and a handful of House members saying that he should go the and and a lot
of the swirling around that's happening. I mean, you got to say, a gentleman here who's the President of the United States and the presumptive nominee of his party and has said a week ago he's not going anywhere. So this is not an easy task. It's not a quick task, it's not a clean task for Democrats, and they're doing this, frankly, at the worst possible time, and in a way that calls into their own credibility as a party.
But the pressure is also coming from Hollywood, George Clooney, Rob Reiner and others. When you lose Hollywood, especially if you're a Democrat, that's not good.
Well, they've got some problems with fundraisers. But you know, I think I want you to look at the how the White House might push back on that. Essentially, I'm the leader of the free world, and a bunch of guys who thought I was great two weeks ago now want me to go. Well, you know, you know, they'll get over this and I'll ride it out. And Biden's given every indication he is going to ride it out for a while, for good or ill.
What are you looking for from the Democratic National Convention next month?
Well, you know, it's interesting. My view most recently expressed to clients last night was that they did they'd be better off not worrying about so much about this kind of dog chasing the fire truck stuff that's going on with the National Democrats right now. And look at what's likely to happen in the convention in two ways. One, this virtual convention that originally was supposed to be held for later this month to pre nominate Biden and Harris.
If delegates aided and abetted by by the National Party want to stop that, they can do it. And there are certainly lots of ways to stop Biden from being nominated at the real convention in August. And I'd be looking at both of those, because if Democrats are serious about stopping Biden, that's where they go, and that's probably where they can apply the greatest amount of pressure on Biden.
Got about a minute left here, Terry Natal leaders in DC, how is this all bound to impact them?
Well, you know, we're at a point where we're already at the highest geopolitical risk in over fifty years, and there was already bound to be increased US political risk. It's, you know, in the middle of the NATO seventy fifth anniversary celebration and at a time where they're ramping up security inside and outside the region. It's a bad look
for the United States. It undermines Biden, it undermines the presidency, it undermines the United States seriousness in the world, and leaves NATO allies scratching their heads a little bit.
Frankly, you're listening to Bloomberg Daybreak today, your morning brief on the stories making news from Wall Street to Washington and beyond.
Look for us on your podcast feed at six am Eastern each morning, on Apple, Spotify, and anywhere else you get your podcasts.
You can also listen live each morning starting at five am Wall Street time, on Bloomberg eleven three to zero in New York, Bloomberg ninety nine to one in Washington, Bloomberg one oh sixty one in Boston, and Bloomberg nine sixty in San Francisco.
Our flagship New York station is also available on your Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.
Listen coast to coast on the Bloomberg Business app, Sirius XM Channel one nineteen, the iHeartRadio app, and on Bloomberg dot Com. I'm Amy Morris.
And I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak