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 have said this twenty nine other times this year on Bloomberg Daybreak. But once again stocks begin the day at all time highs, and it was tech stocks once again, driving the S and P five hundred to its thirtieth record close of the year, helping the Nasdaq one hundred come closer to the twenty thousand mark. Paul Christopher, head of Global Investment Strategy at Wells Fargo Investment Institute, says tech stocks may actually be the safe play.
And maybe there's a certain extent to which even some of these high flying tech stocks have become defensives. If you think about the upcoming elections, if you think about the economy slowing down, Gee, should I buy staples or should I buy discrectionary aud Heck with it, I'm just going to buy something reliable and I'm going.
To go tech.
I think that's the mindset of some investors today.
Also, that's Paul Christopher of Wells Fargo Investment Institute Long bets and the so called Magnificent seven technology behemoths now stand at sixty nine percent. That is among the most single crowded trades in history. According to an investor survey by Bank of America.
Well Nathan has doog sit at record highe The debate over interest rates is still in focus. Philadelphia Fed President Patrick Harker says he sees one rate cut appropriate for this year.
I have a forecast for inflation, employment and economic activity slowing but above trend growth, a modest rise in the unemployment rate, and a long glide back to target for inflation. If all of that happens to be as forecasted, I think one rate cut would be could be appropriate by your end.
Philadelphia Fed President Patrick Harker also said he sees two cuts or none as possibilities, depending on the data.
In Company News Group is putting one of its least glamorous businesses front and center today. More on that from Bloomberg's Doug Prisner.
It's the services business, and it helps cities international clients manage and move cash globally. Today, the bank is aiming to show how the segment can boost profitability. It's already producing a growing share of cities profits, accounting for nearly half the total last quarter. At the bank's Manhattan headquarters, CEO Jane Fraser and CFO Mark Mason will pitch investors
on the services business. Now typically cities, trading operations and credit card business attract more questions on earnings calls, although in April Fraser, not for the first time, called it the firm's crown jewel in New York. I'm Doug Prisoner Bloomberg Radio.
All Right, Doug, thanks well. Boey CEO Dave Calhoun will be on Capitol Hill today for a hearing focusing on the planemakers safety culture. We get more from Bloomberg's Charlie Pellett.
The hearing will put the CEO on the spot to defend his record and salvage his legacy as he prepares to step down later this year. Investors who have endured a thirty two percent stock slump this year and watched Boeing's credit rating come dangerously close to junk status, have
already shifted their focus to Calhoun's yet undisclosed successor. Sources say the new chairman, Steve Mollenkopf, who took over as part of a senior management shake up in March, is leading the search for the next CEO, and the hunt has picked up speed in recent weeks. In New York, Charlie pet Bloomberg Radio.
Thanks Charlie and other big companies in the government's crosshairs. The Federal Trade Commission is suing Adobe, accusing the software company of violating consumer protection laws by making it too difficult for consumers to cancel subscriptions. An Adobe spokesperson did not respond to a request for comment. Users of Adobe products have long complained about the expense of canceling subscriptions.
Accessing Adobe Suite of apps can cost more than seven hundred dollars a year for individuals well.
Turning to politics, now, Nathan in Biden is about to take sweeping action to protect undocumented migrants while trying to soften criticism about his actions at the border. We get the story from Bloomberg Steve Potisk in Washington.
The President will announce a streamlined path to legal status for more than a half million immigrants. Under the new policy, spouses and children of US citizens who've been in the country at least a decade will be able to apply for permanent residency without having to leave the country first. The move could be a counterweight to an order the President signed earlier this month aimed at curbing asylum claims.
The president plans to roll out the policy today at an anniversary event for Deferred Action for Childhood Arrivals, the Obama era program that protects undocumented migrants who came to the US as children. In Washington, Steve Potisk Bloomberg.
Radio, Thank you, Stephen. We're getting a look at what foreign policy might look like if Donald Trump returns to the White House. From the former president's last national security advisor, Robert O'Brien, says the US should cut economic ties with China completely, consider moving the entire US Marine Corps to Asia, and resume live nuclear weapons tests. O'Brien lays out those
proposals in an article set to appear in Foreign Policy Magazine. Now, there's no guarantee Trump would follow those ideas in a second term, but O'Brien says he has remained in regular contact with the former president. A State Department appointee who helped him prepare the article says he gave a copy too the Trump campaign.
Well.
Nathan TikTok's Chinese owner by Dance, has until this Thursday to explain the reason behind its lawsuit against the US. It's a high stakes bid to overturn a new law that would ban TikTok in the US unless by Dance sells it. But that lawsuit is going to test the secrecy of lawmakers briefings, and Bloomberg's Amy Morris explains.
Congress members held a series of secret briefings before deciding to pass the law that could lead to a ban of TikTok in the US. By Dance suit in One of its main arguments is that Congress doesn't have any public proof of a nationals seecurity threat. Well, the challenge could make it to the Supreme Court, but it also poses a test of whether US federal agencies will divulge the national security secrets that they shared with lawmakers so
they can defend the new law. Senator Richard Blumenthal argues that that wouldn't be necessary anyway, because the burden of proof falls to TikTok in Washington. Amy Morris Bloomberg Radio.
Okay, Amy, thank you. Will be monitoring Russian President Vladimir Putin as he visits North Korea today for the first time in twenty four years. North Korea is suspected of sending missiles and millions of rounds of munitions to help Moscow continue its offensive in Ukraine. Melinda Herring, senior fellow at the Atlantic Council's Eurasia Center, says, while the trip is concerning, it is also a reminder of Putin's isolation on the world stage.
One thing that I would keep by eye on is are they going to be cutting more deals to make sure that the Russians have enough shells too. I think it shows how isolated Vladimir Putin is. He doesn't have very many friends.
He's got North.
Korea, and he's got China and a few other people.
The Atlantic Council's Melinda Herring says, the fresh delivery of billions of dollars in arms to Ukraine from the US and European allies will need to be bolstered by further support next year.
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.
Extreme heat alerts remain in effect for tens of millions of people in the US as cities, including Chicago break heat records. States in the Midwest started to bake Monday in the dangerous heat wave that was expected to stretch from Iowa to Maine into at least Friday. The mid Atlantic and New England are likely to see highs in the nineties as the week progresses. Excessive humidity will make
it feel even more oppressive. Officials are warning people to take precautions, such as drinking plenty of water and staying indoors. New York City Mayor Eric Adams says this is extremely hot for June.
With climate chain leading to more frequent and intense heat. Summers are different than they were before, and so we should expect and be prepared for the hot weather that is coming.
Mayor Adams is also urging New Yorkers to check on elderly neighbors and pets. Houston officials say they are ready for the first major taste of tropical weather this summer. A tropical cyclone is forecasted to hit Mexico and portions of Texas later today. It's about fifty miles southeast of Houston. Firefighters in the mountains north of Los Angeles are battling a sixteen thousand acre wildfire that has caused evacuations in Gorman, California.
Firefighters who made some progress on Saturday and Sunday flames that were raging in the strong winds. However, people with respiratory problems have been worned to limit time outside. James Gore, a Sonoma County supervisor, remembers back to the twenty seventeen brush fire that caused very dangerous conditions.
Tubs fire, the Snowma Complex fires. Everybody got caught on their heels, We got smoked. There was this mantra here that was never again, not never a fire again, but never get caught on your heels again.
So far, the point Fanier is about twenty percent contained. Senate Democrats are set to advance legislation de band bump stocks. The vote could come as soon as today. It follows the Supreme Court ruling last week striking down a Trump Arab band. Senate majority leader Chuck Schumer of.
New York Friday's ruling is yet another warnings that this MAGA Court is going off the deep end, aligning itself more and more with the most extreme elements of the hard right.
Schumer says the Supreme Court has struck down freedom of choice, environmental protections, affirmative action, districting, gun safety and more. Global news twenty four hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr. This is Bloomberg Karen.
Orright, Michael, Thank you time now for the Bloomberg Sports Update, which an stash hour John Good Morning.
Morning Care. In the Boston Celtics had at dynasty of the nineteen sixties, won two titles in the seventies, three more in the eighties, had only won the NBA championship once since nineteen eighty six. That was one exactly sixteen years ago. And now the Celtics are once again the top the basketball world.
Confetti guns shooting green and white confetti and making the most beautiful blizzard you have ever seen, rained down on a crowded court at TD Guardy. The final score Boston one oh six Dallas eighty eight. The Boston Celtics are world champions for the eighteenth Tome WVZ.
Game five was a round. Celtics never trailed up by twenty at half times. Jason Tatum scored thirty one points. He had eleven assists. Jalen Brown at at twenty one. He was Finals MVP. Look at Donsons led Dallas with twenty eight. Celtics won four series, never lost more than one game in any of them. So the NBA season is over. Hockey might end tonight. Edmonton plays Game five at Florida. The Panthers lead three to one the Stanley Cup. We'll be in the house. What's gotten into the Mets.
They had a stretch where they went ten to twenty five, but then arrow ride in a six game winstry. They've taken ten in the last twelve and it was fourteen to two in Texas. Mets had twenty two hits. Francisco Lindor had four, four other Mets had three. Brandon Immo drove in four. Red Sox won seven to three in Toronto. Yankees begining a big series the Stadium tonight. Baltimore comes in only game and a half behind, and the Yanks will be without Anthony Rizzo broke his hands Sunday. He's
going to be out four to six weeks. Garrett Cole's been out all season. He's going to make his debut tomorrow, back from the elbow injury. When we last saw Rory McElroy, he was missing two short putts that cost him a chance to win the US Open. He bolted out of Pinehurst without speaking to the media. McElroy released a statement that called Sunday the toughest day of his career. He's withdrawn from this week's tournament near Hartford, says he'll return
for the Scottish and British opens next month. John Stashanward, Bloomberg Sports Kndon 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.
Well.
Here we are again at a record high for the thirtieth time this year for the S and P five hundred and European stocks are joining in the rally this morning as well, Tech shares, driving past concerns once again about higher for longer interest rates and political uncertainty in Europe. Bloomberg Stocks reporter Joe Easton is with us this morning. Joe, good morning. This market just seems to keep defying the naysayers. I mean, are there many naysayers left at this point?
Hey, Nathan, Well, there are a few. I mean, as you were saying, the stocks at a record yesterday, with the biggest gainers over in the tech space. Some of that due to, of course, predictions that the Fed will cut rates, though as you were mentioning, they're potentially less
than some had hoped earlier this year. But the nice are the ones that say that potentially we are just seeing a bit of a bubble now on the bullish side, what you would look at is valuations, and in fact, valuations are a bit cheaper than they were at previous record high. So the S and P trading it just around twenty times earnings. Back in the big tech dot
com bubble era, they were trading around thirty. So we can see that you can still get potentially some value in those stocks even though we are at records, and they are much more profitable companies than they were in previous cycles like that as well much better earnings outlook. So the bulls are definitely outweighing the bears and the naysayers on that front at the.
Moment, certainly seems like they are. But it seems like we continue to ask the question as we've watched this rally throughout the year. What will it take to get a little more breadth in this rally? Is it going to continue to stay concentrated in these megacap stocks that've gotten so much of the attention this year.
Yeah, Well, you're going to need to see some actual economic data act showing improvements in the economy. So we've seen a bit of an easy obviously an inflation and that's feeding into the narrative that the FED can start cutting rates, and not just the FED but around the world as well. But you need to see some better growth in terms of job creation, in terms of unemployment,
and other key macroeconomic metrics. Until you get that, it's basically going to be driven by the Fed, by tech, maybe by continued hopes around AI, which was obviously the big theme of over the past year, alongside the rate cuts. Without the economic data alongside, it's just going to be tech fueling the rally at the moment, I think.
And in terms of the rally that we're seeing this morning in the European session, have a European investors kind of gotten past some of the political uncertainty that we've been concerned about, or that a lot of investors have been concerned about. Following the snap election announcement from President Macron.
Yeah, so that's snap legisative election announced by Micron. That was a bit of a sucker punch for European investors. Last week we saw the CAC forty really dry, having so much fear and uncertainty across the market. The CAC forty fell around five percent after initially falling more than
that and recovering. But there are people in the market today, including Berkeley's, saying that potentially this is overdone and it gives you a good chance to buy into stocks that are quality to the likes of LVMH, even some of the Bank's credit, Agricole, sock Gen companies like this that have seen a sell off. It's a chance to buy in at a low level because the political outlook in
France potentially won't change that much. It might be more difficult, slightly more difficult on the margins for Mcron and his government to get laws through parliament if there is a big change in the legislative legislative makeup, but the outlook pretty much remains the same in terms of the economy and the political outlook in France. Potentially it's a good chance to buy at the low.
This is Bloomberg Daybreak Today, your morning brief and the story's making news from Wall Street to Washington and beyond.
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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