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Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen wall Street enters this final day of the trading week in record fashion. The S and P five hundred notched it's thirty ninth all time high of twenty twenty four, extending this year's surge to about twenty percent. Julian Emmanuel, a Senior Managing Director of Equity Derivatives and quant Strategy at Evercore ISI, he remains bullish.
We do continue to be very positive into year end, and so far twenty five looks good to us as well. You know, part of this narrative again is the Feds behind us. We have earnings that will once again when the reports start in a couple of weeks, confirm the fact that second quarter was not in an that Yes, the other four hundred and ninety three stocks in the S and P five hundred are growing their earnings.
Julian Emmanuel at Evercore I I thinks the SMP five hundred can close the year at six thousand. That's about five percent away from current levels.
Well, Nathan, it could be a volatile day to close out the trading week. Today's the quarterly options expiration known as triple witching, and Bloomberg Markets report Jess Menton is following that it'll be about.
Five point one trillion dollars in options that would be tied to individual stocks, indexes and exchange free traded funds there that are going to be falling off the board if you look at the estimates there, so that could
cause for a bit of swings. They're also overlapping with the rebalance that will be happening, so you'll have a Dell and volunteer that'll be placing at C as well as American Airlines in the S and P five hundred before trading on Monday, so you could see some pop there when it comes to volatility, as well as some volume heading into the closing bell.
Bloomberg Markets Report are j just Menton. The event has a reputation for causing sudden price moves as contracts who disappear and traders roll over their existing positions or start new ones.
Karen shares of FedEx are plunging this morning. In Bloomberg's John Tucker's following that John looks like FedEx isn't really delivering for investors this morning.
Yes, Nathan, you could say, I wouldn't think you could. Share down over thirteen percent right now pre market. The company lowering its annual outlook for adjusted earnings per share and also revenue growth. They're customers looking for cheaper options, in particular FedEx, pointing to a drop in priority shipments between businesses. This is seen as a bell weather for the broader US economy. The company now expects revenue for fiscal twenty twenty five to grow by a low single
digit percentage. A company also, interestingly enough, ending its work for the US Postal Service, its largest customer, and expects a five hundred million dollar headwind from the loss of that contract. You know, York, John Tucker, Bloomber.
Radio, All right, John, thank you well. On the flip side, shares of Nike are up almost seven percent this morning. The company is ousted beleaguered chief executive John Donaho. It's bringing longtime executive Elliott Hill out of retirement in a bid to return the struggling athletic brand to its glory days.
Now Bloomberg exclusive Karen Johnson and Johnson is boosting its offer to settle thousands of lawsuits by people who say that the company's baby powder gave them cancer. Sources say the new offer is eight point two billion dollars, an increase from jan Jay's previous six and a half billion dollar bid. Under the new terms, claimants could get bigger payouts and about six hundred and fifty million dollars in legal fees covered well.
In Europe, Nathan shares a Mercedes going in reverse. The stock down seven percent. The German automaker cut its financial forecast for the year. It blames rapid deterioration of its business in China.
And elsewhere in Asia. Karen, the Bank of Japan is keeping monetary policy steady. Boj is signaling no need to hurry with interstrate hikes. You may recall the bank increase rates in July, and it's hawkish views spooked investors.
Now, Nathan, let's go to the latest in the presidential race, and Vice President Kamala Harris is looking for a campaign lift with star power.
Kamala Horror.
Oprah Winfrey hosted a live extreamed rally for the vice president in Michigan. The Unite for America event featured celebrities like Julia Roberts, Jennifer Lopez and Chris Rock, and ordinary Americans sharing their experiences with gun violence and abortion restrictions. Harris says she hopes to be a unifying president.
This movement that is about reminding each other that we have so much more in common than what separates us is so critically important, and this is about the strength of who we are as Americans.
And Harris repeated promises to offer tax breaks to start up businesses, to sign the bipartisan immigration bill, and to restore federal abortion rights.
Well.
Donald Trump meanwhiles promising to bring back his t travel ban on mostly Muslim countries and expand it to keep refugees from Gaza out of the US. Former president appeared at an event in Washington hosted by Republican donor Miriam Madelson.
My promise to Jewish Americans is this, with your vote, I will be your defender, your protector, and I will be the best friend Jewish Americans have ever had. In the White House.
Trump went on to say, Israel has to defeat Kamala Harris. Speaking of Jewish Americans, he said, quote, there's no way that I should be getting forty percent of the vote I'm the one who is protecting you.
Well, Nathan, what are the political candidates that Trump has endorsed? Is in a spotlight this morning, North Carolina Republican gubernatorial nominee Mark Robinson is vowing to remain in the race. It comes after CNN reported Robinson posted strongly worded racial and sexual comments on an online message board. Robinson says he won't be forced out by salacious tabloid laws.
Now, Karen, let's turn to developments in the Middle East. Israel carried out extensive air strikes across southern Lebanon yesterday, calling it a new phase of its conflict with Hesbola. It comes after an attack in the region in which pagers and other devices exploded, leaving dozens dead. Speaking through an interpreter, Hesbola Secretary General Hassan Nosrala promised retaliation.
We know that our enemy has superiority, and we have never once said anything other than that superiority on the technological level. Because it is not just israelis the Americas are with Israel and the West is with them.
Of those comments from Hesbola Secretary General Hassan Nosrala yesterday, this wave of explosions of wireless devices in southern Lebanon has left more than thirty dead thousands injured. Israel has neither claimed nor denied responsibility.
And it is 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. Good Friday morning, Michael, Thank you very much.
Karen, Good morning to you as well. Senate Majority Leader Chuck Schumer says he's not going to wait for the House to try and pass a government funding bill. It comes as a government shut down is looming in the weeks before the election. Bloomberg's Head Baxter reports.
Senator Schumer says he will set up a vote for next week, this after the House failed to get it done this week, the hang up being the GOP attaching this citizenship voting writer pushed by Donald Trump. Lawmakers like Republican David Kustov say it has to be done.
I voted for the bill to fund the government through March, which the Save Act was attached to it, which prohibits non citizens from voting. But in the end, we do not need a government shut down. We need the government to continue to function.
House speaker Johnson has not announced the next step. He's seeking input, including that from Donald Trump, ed Baxter Bloomberg Radio.
Kentucky judge was shot and killed in his chambers and the suspected shooter is a sheriff. State Police a forty three year old Sheriff Sean Stein's of Rural Elector County shot District Judge Kevin Mullins after an argument inside the county courthouse. Mullins, who was fifty four, was pronounced dead at the scene. State Police Trooper Matt Gayhart.
Oh, any a situation like this sakes place, especially in a smalltown. Shike's the very foundation of what the town is and this is no different. We're just hoping that it's a bad situation that we can resolve as quickly response and start that process forward.
Trooper Gayheart says. Sheriff Stein surrendered without incident and it's charged with first degree murder. Texas Police confirmed human remains were found inside of an suv pulled from the site of the pipeline fire that has been burning since Monday. Officials believe the vehicle crashed into a valve and sparked the fire on the border of Deer Park and Laporte. The fire melted cars and siding off homes and destroyed the playground, County Judge Lena Hidongo.
Many of them don't want to live there anymore. They're just they're scared of the area. The playground right next to the homes is totally charred gray, a lot of it sort of burnt.
Down, Judge Lena Hildalgo. The fire is out after they capped the valve and welded it shut. Global News twenty four hours a day and whenever you want it with Bloomberg News Now Michael Barr, and this is Bloomberg.
Karen all right, Michael Barr, thank you time now for the Bloomberg Sports Update with John Stashauer.
John all right, Darren. When Zach Wilson was trying to play quarterback for the Jets, he made playing QB in the NFL looked like it was a really hard thing to do. Aaron Rodgers makes it look really easy, finding the right receivers, slinging it to him precisely where.
It needs to go.
Rogers and the Jets home opener versus New England looked very much like he did during those MVP seasons. In Green Bay.
He takes the snap, drops back screen left.
Sorry thanks the man.
Miss ct the fun looking for the pilot breaches it out.
He's in hots a jet touchdown.
Rodgers takes the snap, play action, looks right, pumps one throws.
Right talk crick by pilot Derek Wilson.
Hot's a jet touchdown on wax two. Jets beat the Patriots twenty four to three. Rodgers was twenty seven of thirty five two hundred and eighty one yards and those two touchdowns. We'll get to the Pennant races, but first show, Hey o'tani and the Dodgers twenty to four win at Miami that clinched them the playoff. Birth Otanni six for six, two doubles, three home runs, two stolen bases, a Dodgers team record ten runs bat at in He now has fifty one homers on the season and fifty one steals.
While the Dodgers scored twenty, Mets scored ten for the third night in a row, beat the Phillies and City Field ten to six. Atlanta and Arizona also won, though it's still the Mets and d Backs tied. The Braves two games behind Cleveland clinched at least a wild card, will now try to win the Al Central. Just as the playoff bound Yankees to wrap up the Als their magic number six. Yanks lost in Seattle three to two. Mariners scored all three in the first inning. They were
helped by Jason Dominguez dropping a fly ball. Orioles beat the Giants. Red Sox held a one hit and a two nothing lost at Tampa Bay. John Stashey, We're Bloomberg Sports Karen 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, I'm Nathan Hager. We want to tell to take a deeper dive into Kamala Harris's plan for the economy. In today's episode of The Big Take DC podcast, Bloomberg California Bureau Chief Karen Bresla and Washington reporter Josh Wingrove joined host
Sarah Holder. They began with a question about Harris's claim that she's building an opportunity economy.
Let's listen in.
Just talking with equity and this is stitched through a lot of the things that she's done if you look into her record, things that have animated her in her time as vice president before include making sure that people who want to start small businesses, in particular people of color who want to start small businesses, have access to capital. I think we'd be missing part of the story if we don't draw that link between what she sees as
fundamental sort of inequities. If certain business proposals are hitting a wall because minority landers don't have the money to get to them and big lenders aren't giving them the time of day, she sees that as something worth tackling. You see it with her call for a wider child tax credit. Harris in particular has talked about six thousand dollars in a tax credit for people who have a baby. You know, in the first year of a child's life.
As a father of a young child, that can attest to how expensive that can be.
Let me tell you, well, I want to understand where that focus on equity and opportunity really comes from. Karen, you first spoke with Harris back in two thousand and five, and you've interviewed her over the years since then.
Thank you to the attorney General of California, Kamala Harris, Thank you all.
That was from a twenty twelve interview you did with her in Sacramento for an organization called She Shares. You've really seen her full arc on the political stage. What do you see as her most consistent priority. We're seeing things like that call for a child tax credit that Josh mentioned. What is the through line that really drives her?
It's clearly kids. There is something at every turn in her career and in her life she has come around to who are the powerless? Who are the voiceless? Right? Her messaging has been all over the place, but in terms of how do you use power, whether it's the power of a prosecutor, whether it's the power of a regulator, whether it's economic power, Who's it going to benefit? And she always would ask people, how's this going to play on the streets? You know, if it's a mortgage settlement,
are these loans going to be forgiven? Are how are these loan discharges going to affect whether it's students, whether it's homeowners, Where does the money end up? These power fundamentally from the outside in and from the bottom up. She was an outsider in San Francisco politics. She came from Oakland, from Berkeley, just across the bay, but a world apart. Right, San Francisco is a clubby democratic city where power is dynastic. It's connected to families, the pelosis.
Gavin Newsome, the current governor, who was her kind of her frenemy coming up in San Francisco politics, but now it is very different. She is the sitting vice president.
And this is one of the trickiest things. Harris is campaigning both as an incumbent and as a change agent. Right, for instance, political histories littered with people who make pledges about housing starts and don't get anywhere near them. She's proposed expanding assistance that would require Congress two first time home buyers to twenty five thousand dollars. When we're talking
direct subsidies, what she wants to do. She wants to talk about building three million new units of housing over the course of her first Termsublicans then turn around and say that hece of housing has gone up under the Biden Harris administration. You're in the government now, why don't you do something about it?
Josh? You spoke about the challenge Harris faces running both as this change maker and as an incumbent, the FED cut rates by half a percentage point, which indicates that they feel like inflation is getting under control. But under the current Biden Harris administration, many Americans say they aren't feeling good about the economy, that gas and grocery prices are too high. What has Harris said about addressing inflation.
Harris has chalked a lot of this up to corporate greed and said that grocery companies and chains and food providers are in her mind, colluding to keep prices high. Essentially, she is trying to not take the blame. Breaking from Biden is something that's tricky for her, right She's not going to want to stab them in the bag. But there are differences. She's a fifty nine year old who grew up in the Bay Area. He's an eighty one year old raised and claimant Delaware, just outside of Philadelphia.
They see the world differently. One thing that has struck us traveling with her is Harris does not really go to like manufacturing places. Biden love's going anywhere with a hard hat. She doesn't. She goes to small businesses. She goes to like a spice store.
I finally got the bait prep to look at these spices.
Best part of the bake prep so far, Biden sees manufacturing is this sort of silver bullet for a litmus test and how the economy is doing. I think for Harris, if you had to pick one, you'd pick small businesses if they are thriving. She thinks the economy is doing well.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow.
And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Dray