Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
We begin with the Supreme Court. The final decisions of the High Court's term are expected today, and among them is a ruling on President Biden's student loan relief program. Amy Morris has a preview from our Bloomberg ninety nine one newsroom in Washington.
The administration's program would erase up to twenty thousand dollars of federal student loan debt for forty million borrowers. Bloomberg Supreme Court reporter Greg Store says there are questions about the case and the challenges.
During arguments to the courts seem pretty skeptical that he had the authority to do that, but there is a lingering question about whether the states and others challenging the plan have legal standing to even get in the court.
No matter what the ruling is, today, the payment pause is lifted and borrowers must resume their monthly payments in October until the Education Department can process their debt relief applications. That is, if the court allows the program to continue. In Washington. I Maye Morris, Bloomberg Day break all.
Right, Amy, thank you well. Today's rulings come after a decision yesterday that revers to decades of president and college admissions. In a six to three vote, that justices ruled that race can no longer be considered in enrollment decisions, and that drew a harsh response from President Biden.
If a students has overcome, had to overcome adversity on their path education, college should recognize and value that our nation college and university should be engines of expanding opportunity through upper mobility. But today too often that's not the case.
And the President says the court is putting its legitimacy in doubt, but he still opposes large scale reforms like expanding the court or imposing term limits on justices.
Well, just the decision, Karen is drawing sharp response from other Democrats on Capitol Hill. Congressman Robin Kelly says universities should still push for diverse student bodies even after the ruling.
The promise of America is big enough for all of us to succeed, and I just hope that colleges will continue their mission of bringing in a diverse student body legally, of course, not breaking any rules but it is so important for the college end for society.
Democrat Robin Kelly of Illinois spoke with Joe Matthew on Bloomberg Sound on listen weekdays one pm Eastern on Bloomberg Radio or on demand wherever you get your podcasts.
Well, another note out of Washington this morning, Nathan, we're learning a man who took part in the January sixth attack on the Capitol has been arrested in the neighborhood where former President Barack Obama lives. Reports say the man had weapons and explosive materials. It was not known if Obama and his family were home at the time.
Let's turn to markets now, Karen. This is the final trading day of the first half of the year, and it has been a good twenty twenty three for the bulls. Leading the games the tech heavy Nasdaq. It has surged almost thirty percent this year. Shares of Apple have helped fuel the rally. Now the tech giants on the cusp of becoming the first company with a market value of three billion dollars. Still there is caution in the air. Sonia Maskin is head of US Macro at BNY Melon.
I think the risk is really frankly inequities. I think I'd be quite cautious about and very mindful of equity selection process here because higher term premium and high real rates are not necessarily the equity's friend.
Bny Mel and Sonia Mescan notes the S and P five hundred has now posted gains for three straight quarters.
Well, helping boost sentiment today, Nathan is the belief that the Federal Reserve is almost done raising rates, even though Fetchier J. Powell signaled two more hikes are on the way. Atlanta FED President Raphael Bostik disagrees and thinks the Fed should pause.
The Median Committee participant believes the FMC needs to do more to get inflation back to our target, and here I have to confess I do not fully share this view.
And speaking in Ireland, Rafael Bostik said he thinks the policy rate should hold steady because of signs that inflation is easy and the labor market is cooling.
Members of the Fed are going to get more KEYDA today, Karen, ahead of next month's policy decision. This morning we get PCEE price data plus readings on household income and spending. Bloomberg's Michael McKee has a preview.
Americans likely continued to spend more in May, but not a whole lot. Analysts are predicting a pullback as people ran down their pandemic savings and tired of buying stuff. The question is will spending on services continue to surprise as it did in the first quarter, helping push GDP growth through March to two percent from one point four percent. The fat in particular, will also be focused on the
May PCE inflation numbers. While core inflation is forecast to remain sticky, headline inflation should drop below four percent for the first time since the pandemic. Michael McKee, Bloomberg Daybreak.
All right, Michael, thank you well. Economic data is also in focus in Asia today. China's economy decelerated in June as manufacturing activity contracted once again. Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong.
The official PMI was forty nine, matching estimates but barely up from May. Manufacturing gage slipped to fifty three point two from fifty four point five the prior month. While slightly disappointing, at least it was firmly an expansion now the numbers suggest the government will dole out more stimulus. It's not that there hasn't been an effort to provide support, but the question remains is it working. New Orders Export Orders engages on employment all below fifty in Hong Kong.
Brand Curtis Bloomberg dbreak.
Ran thanks back here in the US. Shares of Nike are down nearly four percent. The outlook for the full year failed to win over Wall Street sales top estimates, but profit fell short. And for that look at other stories making news in New York and around the world. We are joined by Bloomberg's Michael Barr Good Friday Morning, Michael.
Good, Morning, Nathan. The verdicts are in on charges for the former Florida Sheriff's deputy who was first on the scene at the twenty eighteen Parkland school shooting but took cover instead of taking action. Bloomberg's Dan Schwartzmann reports.
Former Broward County Deputy Scott Peters has been acquitted on felony child neglect charges, amongst other charges, for failing to actoring the Parkland school massacre back in twenty eighteen, the left seventeen dead. Peterson at the time was a campus deputy at Marjorie Stoneman Douglas High School, was accused of failing to confront shooter Nicholas Cruz as he went on
his rampage. Video shows Peterson taking cover in the alcove of a neighboring building from the shooting with his gun drawn and not moving from that location for over forty minutes until well after other officers stormed the building and captured Cruise. In New York, I'm Dan Schwartzman Bloomberg Daybreak.
New York City Mayor Eric Adams defended his handling of migrants arriving in the city from Republican led states. Adams said he has visited El Paso, Texas, where he saw migrant families sleeping in the airport and on the streets. The mayor said, while New York will seek help to ease the burden on the city, it will not refuse care to migrants.
We have navigated over seventy thousand people in our city.
No child of family are sleeping on the streets of the City.
Of New York. Mayor Adams made his comments while taking questions on the city's budget. Adams and the city Council speakers struck a deal on a record one hundred and seven billion dollar budget. The agreement, which comes as the city faces a potentially deteriorating economic climate, will cut some funding for Rikers Island and homeless services. Republican Representative George Santos returns to a New York court today for the first time since pleading not guilty last month to fraud charges.
The hearing for the Long Island congressman is expected to focus on future court dates, among other things, Santos is accused of duping donors, stealing from his campaign, and collecting fraudulent unemployment benefits. The holiday travel rushes on after what's been a stressful week for travelers, with more than six hundred flights canceled yesterday alone and more than seven thousand
canceled since Saturday. Passengers are on edge, with bags filing up at airports, some people stranded for days, and the TSA says today will be its busyest of the holiday weekend. Global News twenty four hours a day, powered by more than twenty seven hundred journalists and analysts and over one hundred and twenty countries. I'm Michael Barr, and this is Bloomberg.
Nathan, Thank you, Michael, time for the Bloomberg Sports Update. Good morning, John Staneshawer.
Morning Nathan.
The Yankees and Mets both displayed game number eighty one, so halfway through. Yankees at forty five and thirty six. They love a tough time repeating as AL East champ. They're nine and a half games behind Sampa Bay, but they figured the battle for a wild card in Oakland. They trailed three to one, exploded for eight runs in the sixth, then he beat the lowly a ten to four to win the series. This win coming after the Domingo Hermann perfect game. Who's Aaron Boone.
Thought the guys were really energetic, almost that like you, Forick.
Didn't have time to think.
It's like here we go, let's go tomorrow, and you're coming off the high of Domingo, so so I really thought the energy was really good.
Three hits Isaiah Connor for Lefahomer drove in three runs. Yankees fight tonight in Saint Louis. The Cardinals a huge first half disappointment after winning the NL Central last season. They're in last place. They're fourteen games under five hundred, and the Mets not all that much better after one hundred and one wins a year ago. Their record halfway through thirty six and forty five. They've lost eighteen of their last twenty four games. Beaten again by Milwaukee at
City Field three to two. Mets got back to back home runs third inning Brett Baty Brandon Nimo. They led to nothing with Max Schurz on the mound, but they didn't score again. The Liberty of much hype team this season with the class of the WNBA, the Las Vegas Aces won the championship last season. They are fourteen and one. They've beat Liberty by seventeen. NBA free agency about to kick off. Kyrie Irving on the list. There's a report
he's talking to the Phoenix Suns. James Harden is one time teammate in Brooklyn, opted in in Philadelphia and make thirty five million.
He could still get traded by the six Ers. John Stasheller Bloomberg.
Sports from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. President Biden is delivering his strongest criticism of the Supreme Court yet following its decision to end affirmative action, essentially in college admissions. At the White House yesterday, the President told reporters, quote, this is
not a normal court. Then he expanded on that in an interview on MSNBC.
I just find it just so out of sorts with the basic value system the American people. The vast majority of American people don't agree with a lot of the decisions courts to make.
You.
Yeah, that was the President yesterday following that affirmative action decision. And this Court has yet another high profile decision coming today on the final day of its term, on the President's student debt relief program. For more on the politics of the High Court, we are joined by Julie Norman, the co director of the Center on US Politics at University College London. Julie, it's good to speak with you
once again. There have been so many questions over the last several months about the standing of this Supreme Court. Now following the decisions that are coming at the end of this term, how would you assess the legitimacy of the Supreme Court right now as an institution.
Well, good morning, Nathan. You know, I would say the ruling that we saw yes during affirmative Action was certainly expected. We've also seen several unexpected decisions, especially regarding voting rights and preserving legislators say in that, So I would say it's been a mix so far this season with the court's rulings that expected and unexpected. But I would say I would Biden's comments, I think are shared by by
many that this is an unusual court. But I would say the rulings that we're seeing come down are actually pretty rational and pretty much a mix of what you would expect from from many Supreme courts. So I would personally hesitate from saying this is particularly unusual.
Yeah, it is interesting to hear the price that think go so far as to say this is not a normal court. You think about as well, the decision last year on overturning abortion rights. What is the potential risk for the president to come so hard against the Supreme Court, at least rhetorically.
Yeah, So I think this is something that Biden played right politically with abortion because Democrats did get a big boost out of that, and that's mainly because it's an issue that matters to a lot of people, I think, regardless of what Biden said about it or not. Regarding affirmative action. Again, for Democrats, this has been a big issue within the party. But somewhat contrary to Biden's comments,
public opinion is rather split on this. You know, the majority of Americans do not support the inclusion of race in college admissions, and even among Democrats, it's quite split. And we saw that with California in twenty twenty trying to bring affirmative action back in California, very liberal state. You know, I fifty seven percent said no, we don't
want affirmative action. So I would say public opinion is much more nuanced on this issue than I think Biden and many Democrats have portrayed it to be.
What does it tell you, Julie, that the Supreme Court has waited until the final day of its term to come out with its decision on a case that is going to affect the president's political standing pretty directly, I think it's pretty safe to say on the student debt relief program, which is so popular with his young educated Democratic voter base.
Well, yeah, so, Nathan, we usually see the Court wait until the very last couple of days to release the most controversial rulings. So affirmative Action yesterday, probably student loans today, and the student loan relief was again an executive action that Biden put in place last year to relieve dead up to twenty thousand for some applicants and of ten thousand for others. The Court has been hearing arguments this is executive overreach, and it's expected that they will likely
put a stop to that. So while affirmative action has its own implications, I think the case today certainly has political implications because it's really the Justice Department, the Supreme Court putting a very direct check on Biden and on the executive and that's politically going to be you know, that's going to hit Biden. But I would say this is something that was somewhat expected. If this is the way it comes out.
Is this a kind of political impact that could have implications into twenty twenty four got about a minute left, I.
Think it would. I mean, the student loan program definitely helped Democrats in the midterms, and I think many of them knew that, even knowing that it might get struck down later. I think realistically, you know, this is something that matters for many of Democrats base. I think it matters for getting support for Biden and many Democrats in primaries. But at the end of the day, again, this was
also an issue that was very controversial. Many working class voters in particular felt left out of loan relief that was going to students and not to say small businesses or other enterprises. So in the general elections, I could say this could come out in a wash, but it was definitely galvin from many young Democrats in particular to come out and support Biden, support the Democrats.
Nicolls.
This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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