Traders Follow Political Uncertainty; Americans Lament Trump-Biden Rematch

Bloomberg Audio Studios, Podcasts, Radio News. 0:00:10.480 --> 0:00:10.879 Good morning. 0:00:10.920 --> 0:00:13.560 I'm John Tucker and I'm Karen Moscow. Here are the 0:00:13.600 --> 0:00:15.080 stories we're following today. 0:00:15.360 --> 0:00:19.239 Karen, we begin overseas where traders are following the political 0:00:19.320 --> 0:00:22.880 landscape in France. City Group strategists downgraded the region to 0:00:23.000 --> 0:00:27.440 neutral from overweight, citing risks of extreme parties gaining ground 0:00:27.600 --> 0:00:31.360 in the upcoming parliamentary elections, and Bloomberg's Ewan Pots joins 0:00:31.400 --> 0:00:33.839 us for the latest on what's happening in Europe. You 0:00:33.960 --> 0:00:35.880 and good morning, John and Karen. 0:00:35.920 --> 0:00:38.680 European stocks fairly flat this morning after in Vester's flocked 0:00:38.680 --> 0:00:41.559 to haven assets at the end of last week. Political 0:00:41.600 --> 0:00:44.960 volatility in France very much in focus, with latest polls 0:00:44.960 --> 0:00:48.560 putting President at Manual Macron's party in third place out 0:00:48.560 --> 0:00:51.600 of upcoming elections to the French Parliament. The party of 0:00:51.680 --> 0:00:54.840 far right leader Marine Le penn currently has a polling lead, 0:00:54.880 --> 0:00:58.040 with a left wing coalition in second place. They presented 0:00:58.080 --> 0:01:00.680 plans to pick apart most of Macron's seven years of 0:01:00.680 --> 0:01:03.800 economic reforms and set France on a collision course with 0:01:03.840 --> 0:01:06.840 the European Union over fiscal policy. The first round of 0:01:06.880 --> 0:01:09.959 voting takes place in just under two weeks time. In London, 0:01:10.000 --> 0:01:11.920 immune potsplinback radio all. 0:01:11.880 --> 0:01:14.600 Right you and Thanks, and the political upheaval in France 0:01:14.680 --> 0:01:17.800 has led Paris to lose its title as Europe's largest 0:01:17.800 --> 0:01:20.679 equity market. Billions of dollars are wiped off the market 0:01:20.720 --> 0:01:24.319 cap of French firms after Emmanuel mccron called the surprise 0:01:24.400 --> 0:01:27.760 snap election. Stocks in the country are now collectively worth 0:01:27.800 --> 0:01:31.400 about three point one three trillion dollars, narrowly behind London's 0:01:31.440 --> 0:01:34.320 three point one eight trillion. The CATC forty index has 0:01:34.319 --> 0:01:37.240 erased all its gains for twenty twenty four. 0:01:37.400 --> 0:01:40.800 And meanwhile, in the UK, Richie Sunac's Conservatives headed for 0:01:40.880 --> 0:01:44.000 a wipeout in the July fourth general election. At least 0:01:44.000 --> 0:01:47.520 that's according to new polling data. Servation survey sees the 0:01:47.560 --> 0:01:50.280 Tories getting only seventy two seats, which would be their 0:01:50.320 --> 0:01:54.240 worst election performance in two centuries. One of the reasons 0:01:54.280 --> 0:01:57.040 for their slide in the polls has been the emergence 0:01:57.040 --> 0:02:00.640 of the right wing Reform UK led by Nigel Farage, 0:02:00.720 --> 0:02:04.800 the party launching its manifesto today well John. 0:02:04.800 --> 0:02:08.240 As the political turmoil continues in Europe, new data show 0:02:08.280 --> 0:02:10.840 the US mopped up almost one third of all the 0:02:10.840 --> 0:02:15.440 global investment flows since COVID analysis by the International Monetary 0:02:15.480 --> 0:02:18.399 Fund shows that the US's share of financial flows has 0:02:18.480 --> 0:02:22.799 climbed with higher interest rates of major draw for overseas investors. 0:02:23.120 --> 0:02:26.480 The pre pandemic US average share was just eighteen percent. 0:02:26.840 --> 0:02:29.200 The US also pulled in a fresh wave of foreign 0:02:29.200 --> 0:02:33.040 direct investment. However, FED rate policy and the presidential election 0:02:33.520 --> 0:02:35.720 could affect the fiscal deficit. 0:02:35.600 --> 0:02:37.720 And Karen the Markets Now Trader is going to be 0:02:37.760 --> 0:02:41.440 digesting a lot of FED speak this week following last 0:02:41.440 --> 0:02:43.880 week's CPI reading and FED decision. We're going to hear 0:02:43.919 --> 0:02:46.120 from the New York FED President John Williams today as 0:02:46.120 --> 0:02:49.680 well as Patrick Carker or Philadelphia and fedkevinor Lisa Cook. 0:02:49.840 --> 0:02:52.240 Later this week, we'll hear from the Dallas FED President 0:02:52.520 --> 0:02:56.600 Lorie Logan and the Chicago FED President Austin Goolsby. Over 0:02:56.639 --> 0:02:59.560 the weekend, Minneapolis FED President Neil kesh Carey said on 0:03:00.080 --> 0:03:03.160 CBS has faced the nation that rate cuts are still 0:03:03.560 --> 0:03:04.480 a ways away. 0:03:04.919 --> 0:03:07.079 We're in a very good position right now to take 0:03:07.120 --> 0:03:10.720 our time, get more inflation data, get more data on 0:03:10.760 --> 0:03:13.280 the economy, on the labor market, before we have to 0:03:13.320 --> 0:03:15.840 make any decisions. So we're in a strong position. But 0:03:15.919 --> 0:03:17.720 if you just said there's going to be one cut, 0:03:17.919 --> 0:03:20.800 which is what the mediaan indicated that would likely be 0:03:20.880 --> 0:03:22.000 toward the end of the year. 0:03:22.400 --> 0:03:22.760 Well John. 0:03:22.840 --> 0:03:26.600 Minneapolis FED President Neil Kashgari's comments are echoed by Cleveland 0:03:26.680 --> 0:03:30.680 FED President Loreddamester, who spoke with our Michael McKee. Mester 0:03:30.760 --> 0:03:34.440 says monetary policy is well positioned to ensure that inflation 0:03:34.600 --> 0:03:36.880 moves back down to two percent over time. 0:03:37.320 --> 0:03:40.320 It's going to take some time to get inflation back 0:03:40.360 --> 0:03:42.760 to two percent all the way back. So my projection 0:03:42.920 --> 0:03:46.000 is that we probably won't get there until twenty twenty six, 0:03:46.200 --> 0:03:50.040 but we'll see progress continue in my modal view, and 0:03:50.080 --> 0:03:54.680 that's enough right to then say, okay, it's time to 0:03:54.760 --> 0:03:57.560 start the process of bringing rates down. 0:03:58.000 --> 0:04:01.240 Cleveland FED president the REDDA Master says the central bank 0:04:01.280 --> 0:04:04.040 is in a comfortable position to address inflation if data 0:04:04.080 --> 0:04:07.200 comes in hotter than expected, or to address any potential 0:04:07.240 --> 0:04:09.160 disinflationary trends that emerge. 0:04:09.360 --> 0:04:13.600 And moving to politics now, with the November presidential election approaching, 0:04:13.960 --> 0:04:17.080 the ranks of double hater voters have hit an all 0:04:17.120 --> 0:04:20.560 time high. This according to new analysis from Pew Research, 0:04:20.720 --> 0:04:23.680 double haters make up one quarter of the electorate. That's 0:04:23.720 --> 0:04:27.240 nearly twice as many as at this point in twenty twenty. 0:04:27.640 --> 0:04:30.880 Double haters are disaffected voters who say they don't like 0:04:31.040 --> 0:04:35.080 either major party presidential candidate. Biden and Trump are taking 0:04:35.160 --> 0:04:39.159 roughly equal measures of these voters in battleground states, with 0:04:39.279 --> 0:04:43.239 a May Bloomberg News Morning Console pull showing President Biden 0:04:43.279 --> 0:04:46.360 winning twenty five percent to Trump's twenty two percent. 0:04:47.040 --> 0:04:49.000 Well John, As Donald Trump looks to return to the 0:04:49.040 --> 0:04:52.320 White House, he's proposing a new idea of using tariff 0:04:52.400 --> 0:04:55.239 hikes as a way to pay for some income tax cuts. 0:04:55.480 --> 0:04:59.680 Former Treasury Secretary Larry Summers blasted Trump's plan, saying it'd 0:04:59.680 --> 0:05:02.800 be damn imaging to both the US and the global economy. 0:05:03.080 --> 0:05:06.159 Summers tells Bloomberg that Trump's plan to use tariffs in 0:05:06.240 --> 0:05:09.440 his way is a quote prescription for the mother of 0:05:09.480 --> 0:05:10.640 all stagflations. 0:05:11.040 --> 0:05:17.560 Look, I don't think there's been a more inflationary. 0:05:18.040 --> 0:05:24.680 Presidential economic policy platform in my lifetime. 0:05:25.520 --> 0:05:30.039 And asked about Larry Summer's criticisms, a Trump campaign spokesperson said, quote, 0:05:30.080 --> 0:05:34.800 Americans can expect President Trump's second term economic agenda will 0:05:34.880 --> 0:05:37.960 end at Joe Biden's inflation crisis that continues to rob 0:05:38.000 --> 0:05:40.520 working families of thousands of dollars every month. 0:05:40.760 --> 0:05:44.240 Oils slipped following mixed economic data out of China, and 0:05:44.360 --> 0:05:47.480 the pullback and oil came as the Biden administration reportedly 0:05:47.600 --> 0:05:51.359 is ready to reopen the US stockpile. Prices jump in 0:05:51.400 --> 0:05:55.200 the summer months ahead. Amos Hawkstain, the President Biden's closest 0:05:55.240 --> 0:05:58.280 advisor on energy, telling the Financial Times the administration will 0:05:58.320 --> 0:06:01.400 do everything it can to make sure the market is 0:06:01.400 --> 0:06:05.080 supplied well enough to ensure low prices as low prices 0:06:05.120 --> 0:06:09.599 as possible for American consumers, which includes releasing more oil 0:06:09.680 --> 0:06:13.279 from these strategic petroleum reserves. He says he believes there's 0:06:13.360 --> 0:06:16.359 enough oil in the stockpile if it becomes necessary to 0:06:16.480 --> 0:06:17.840 draw from the reserves. 0:06:18.320 --> 0:06:20.880 Well elsewhere on the energy front, here, John Bill Gates 0:06:21.000 --> 0:06:23.280 said he's prepared to throw billions of dollars into a 0:06:23.320 --> 0:06:26.440 next generation nuclear power plant project in Wyoming to make 0:06:26.480 --> 0:06:30.279 growing US electricity needs. The billionaire tell Cbs has faced 0:06:30.320 --> 0:06:33.760 the nation that his energy startup, Terra Power, relies on 0:06:33.960 --> 0:06:37.200 sodium cooling rather than water, which is believed to both 0:06:37.240 --> 0:06:40.560 simplify the process while also being safer, and can make 0:06:40.640 --> 0:06:44.320 nuclear energy a source of a low cost electricity in. 0:06:44.560 --> 0:06:47.960 Two big backers of this project are the terr power vesters, 0:06:48.000 --> 0:06:50.240 of which I'm the largest. I put in over a 0:06:50.279 --> 0:06:54.000 billion and I'll put in billions more. And then the 0:06:54.040 --> 0:06:59.039 federal government, who is helping because of the strategic benefits 0:06:59.560 --> 0:07:03.599 of having energy security and so we're not asking any 0:07:03.640 --> 0:07:07.760 of the utility customers to take any risk and have 0:07:07.839 --> 0:07:11.000 to pay high electricity prices. All of that risk is 0:07:11.080 --> 0:07:16.200 on terror Power and the US. 0:07:16.120 --> 0:07:19.400 Government Bill gates as Terror Powers plant is on track 0:07:19.440 --> 0:07:21.440 to start producing power by twenty thirty. 0:07:21.920 --> 0:07:25.320 And here it comes the season's first heat wave set 0:07:25.360 --> 0:07:28.440 to hit the East Coast this week. Excessive heat watches 0:07:28.600 --> 0:07:31.640 have been posted from Michigan to New Hampshire. Manhattan is 0:07:31.640 --> 0:07:34.680 set to reach ninety one degrees tomorrow as steadily get 0:07:34.800 --> 0:07:38.240 hotter throughout the week. Electric rids and wholesale prices will 0:07:38.240 --> 0:07:41.560 be stressed as demand rises with the temperatures, which could 0:07:41.640 --> 0:07:44.760 slow trains, tie it freight and passenger traffic, and can 0:07:44.800 --> 0:07:47.840 also lead to increased heat illnesses. 0:07:51.400 --> 0:07:52.680 And it's time now for a look at some of 0:07:52.680 --> 0:07:54.720 the other stories making news in New York and around 0:07:54.760 --> 0:07:57.040 the world. For that, we're joined by The Blottleberg's Michael 0:07:57.120 --> 0:07:58.880 Barr Michael good Morning, Good. 0:07:58.640 --> 0:08:01.960 Morning care In. The israelilitary says it is pausing fighting 0:08:02.360 --> 0:08:05.680 during daytime hours along a route in southern Gaza to 0:08:05.720 --> 0:08:10.400 free up a backlog of humanitarian aid deliveries for desperate Palestinians. 0:08:10.840 --> 0:08:13.679 It should allow eight trucks to reach the Israel controlled 0:08:13.760 --> 0:08:17.680 Karam Shalom crossing and travels safely to a highway to 0:08:17.760 --> 0:08:21.400 deliver supplies to other parts of Gaza. The United Nations 0:08:21.480 --> 0:08:24.160 says it welcomes the move, but adds that so far 0:08:24.280 --> 0:08:28.160 no aid has left Karam Shalom. A peace conference to 0:08:28.320 --> 0:08:31.240 end the warn Ukraine wrapped up Sunday, with eighty countries 0:08:31.520 --> 0:08:35.320 jointly calling for any peace agreement between Russia and Ukraine. 0:08:35.640 --> 0:08:40.439 EU Commission President Ursulavderlane says peace won't be achieved in 0:08:40.480 --> 0:08:41.280 a single step. 0:08:41.600 --> 0:08:44.120 I call on Russia to heed the message of the 0:08:44.160 --> 0:08:50.520 international community, respect the territorial integrity and sovereignty of Ukraine, 0:08:51.080 --> 0:08:56.400 put an end to imperialist violence, and bring back the children. 0:08:56.880 --> 0:09:00.320 Russia was not invited to the conference in Switzerland. Several 0:09:00.320 --> 0:09:02.840 mass shootings took place in the US over the weekend. 0:09:03.280 --> 0:09:07.440 In the Detroit suburb of Rochester Hills, Michigan, a vigil 0:09:07.520 --> 0:09:10.120 took place for nine people who were wounded at a 0:09:10.120 --> 0:09:14.840 splash pad. The victims including two children and a pregnant woman. 0:09:15.280 --> 0:09:18.240 Rochester Hills Mayor Brian Barnett spoke at the vigil. 0:09:18.400 --> 0:09:21.640 Thank you for being for caring enough to be here today, 0:09:21.679 --> 0:09:24.559 and if there's anything that the city can do, we. 0:09:24.559 --> 0:09:25.600 Stand ready to do it. 0:09:25.960 --> 0:09:29.160 We're stunned and hurt as well, but we know that 0:09:29.240 --> 0:09:30.760 we have a role to play and we want to do. 0:09:30.720 --> 0:09:31.560 It as best we can. 0:09:31.600 --> 0:09:33.640 The gunman was found dead in his home from an 0:09:33.679 --> 0:09:37.120 apparent self inflicted gunshot wound. In Texas, two people were 0:09:37.200 --> 0:09:40.360 killed and several others injured during a June teenth celebration 0:09:40.440 --> 0:09:43.520 over the weekend. In round Rock, police a shots were 0:09:43.520 --> 0:09:47.960 fired during a fight near a concert stage. And in Methuen, Massachusetts, 0:09:48.040 --> 0:09:51.120 officials say seven people were shot after a pop up 0:09:51.160 --> 0:09:55.760 party organized over social media erupted in gunfire. A week 0:09:55.800 --> 0:09:58.600 and a half before the first presidential debate, Former President 0:09:58.679 --> 0:10:02.080 Donald Trump meets today with the House Speaker Mike Johnson 0:10:02.320 --> 0:10:05.959 at Trump's resort in Mara Lago. Congressional Republicans are looking 0:10:06.000 --> 0:10:08.559 at how to hold on to the slim majority they 0:10:08.600 --> 0:10:11.760 have in the House. The Outsiders, based on the novel 0:10:11.800 --> 0:10:14.560 of the same name by Susan Elouise Hinton, won the 0:10:14.600 --> 0:10:18.680 Tony Award for Best Musical Producer. Matthew Rigo thanked the 0:10:18.760 --> 0:10:20.160 author for sharing your story. 0:10:20.440 --> 0:10:20.840 Susie. 0:10:20.840 --> 0:10:23.920 I'm here to tell you that your story and his 0:10:24.080 --> 0:10:29.320 eternal message of love and family and stain gold has 0:10:29.360 --> 0:10:31.640 forever changed all of our lives. 0:10:31.679 --> 0:10:32.880 We love you, Thank you. 0:10:33.320 --> 0:10:38.280 I Stereophoni took home Best Play and Appropriate Best Play 0:10:38.280 --> 0:10:41.000 Revival Global News twenty four hours a day and whenever 0:10:41.040 --> 0:10:43.280 you want it with Bloomberg News Now. I'm Michael Barr. 0:10:43.320 --> 0:10:44.839 This is Bloomberg Karen. 0:10:44.800 --> 0:10:51.920 Yes, stay gold. Michael Barr, thank you time now for 0:10:51.960 --> 0:10:55.400 the Bloomberg Spores Update with John Stanishauer. John, good morning, 0:10:55.480 --> 0:10:56.120 Good morning care. 0:10:56.120 --> 0:10:58.480 In the one hundred and twenty fourth US Open came 0:10:58.520 --> 0:11:01.160 down the price of the Shambo and Rory McElroy down 0:11:01.240 --> 0:11:03.840 the stretch at times tied both hell leads on the 0:11:03.840 --> 0:11:06.440 back nine mcelroyal, but Theeah today three shots behind, led 0:11:06.480 --> 0:11:09.240 by two with five holes to play and then had 0:11:09.240 --> 0:11:12.880 a nightmare finish three Vogue. He's on sixteen and eighteen. 0:11:13.360 --> 0:11:15.480 He missed a par put of no more than four 0:11:15.520 --> 0:11:18.880 feet to Shamba took advantage a tremendous save for par 0:11:19.000 --> 0:11:21.000 on the last hole gave him the one shot victory 0:11:21.080 --> 0:11:24.199 the second Open title. On eighteen, his t shot landed 0:11:24.240 --> 0:11:26.880 near a tree, his second shot in a bunker well 0:11:26.920 --> 0:11:29.440 away from the green, but his sands shot got him 0:11:29.440 --> 0:11:30.480 within four feet of the hole. 0:11:30.920 --> 0:11:33.479 Thousands USGA Championship. 0:11:33.640 --> 0:11:35.480 I mean, just stack him on top. 0:11:36.040 --> 0:11:38.480 That bunker shot was the shot of my life. 0:11:38.800 --> 0:11:42.200 And I'll forever be thankful that I've got longer wedges. 0:11:42.600 --> 0:11:45.800 Shambo referenced to total number of USGA events that have 0:11:45.800 --> 0:11:48.680 been played. Heartbreak for Mcelroyalo's guy gone a decade without 0:11:48.720 --> 0:11:51.120 winning a major. Eleven times since then he's finished in 0:11:51.160 --> 0:11:54.160 the top five. This was his fourth second place finish. 0:11:54.320 --> 0:11:56.640 Yankees quick starting Boston Aaron Judge home run of the 0:11:56.640 --> 0:11:58.760 first in his twenty sixth with the Red Sox won 0:11:58.840 --> 0:12:01.120 nine to three and won the series. Boston pulled away 0:12:01.120 --> 0:12:03.160 after the Yanks down four to three in the seventh, 0:12:03.600 --> 0:12:05.800 had the bases loaded, no one out and didn't score 0:12:05.880 --> 0:12:08.160 Mets with a city field sweep of the Padres, winning 0:12:08.160 --> 0:12:10.200 eleven to six. Mets have won five in a row 0:12:10.320 --> 0:12:12.600 nine of the last eleven. Rough weekend for the Dodgers. 0:12:12.600 --> 0:12:16.040 They lost Yoshinovo Yamamoto to a strained rotator cuff, and 0:12:16.080 --> 0:12:18.400 then Mookie Betts got hit with a pitch broke his hand. 0:12:18.840 --> 0:12:21.440 They did win yesterday at show O Tony Homer twice. 0:12:21.440 --> 0:12:25.000 Celtics tonight with a second chance to win the NBA Championship, 0:12:25.040 --> 0:12:27.640 this time at home. They lead Dallas three games to one. 0:12:27.679 --> 0:12:31.480 Another Caitlin Clark incident in the WNBA game against the 0:12:31.559 --> 0:12:34.520 Chicago Sky. This time it was fellow rookie Angel Reese 0:12:34.520 --> 0:12:37.040 who hit Clark in the head. Fever won the game. 0:12:37.080 --> 0:12:40.120 Clark scored twenty three points, had eight rebounds nine assists. 0:12:40.400 --> 0:12:42.600 John Stash, I want Bloomberg Sports Karen. 0:12:44.800 --> 0:12:48.960 Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, 0:12:49.040 --> 0:12:51.960 and around the world on Bloomberg dot Com and the 0:12:52.000 --> 0:12:56.200 Bloomberg Business app. This is Bloomberg Daybreak at. 0:12:56.120 --> 0:12:58.880 US Futures right now indicate a mixto open on Wall 0:12:58.880 --> 0:13:01.440 Street this morning. No short of events for investors to 0:13:01.559 --> 0:13:03.679 launch onto us. We start the new week from the 0:13:03.679 --> 0:13:07.680 Bloomberg Interactive Brokers studios. I'm John Tucker along with Karen Moscow. 0:13:07.800 --> 0:13:11.640 We have the escalating concern about political volatility in France. 0:13:12.160 --> 0:13:14.320 We had fed to speak over the weekend. Neil kush 0:13:14.360 --> 0:13:17.240 Karri is saying, the central Bank and tickets time before 0:13:17.280 --> 0:13:19.880 cutting rates. Let's get you set up for the trading 0:13:19.960 --> 0:13:23.520 day ahead. We're joined now by Bloomberg's Critty Gupta, host 0:13:23.520 --> 0:13:27.840 of Markets today in the UK. Pleasure to talk to you, Againtty. 0:13:28.160 --> 0:13:32.040 Politics do matter for markets. In fact, France's stock market 0:13:32.600 --> 0:13:35.160 now falling behind the UK. Do I have that right? 0:13:35.800 --> 0:13:36.280 And that you do? 0:13:36.480 --> 0:13:39.119 And this is remember something that they kind of overtook 0:13:39.520 --> 0:13:43.560 about two years ago, and this latest drop behind the 0:13:43.640 --> 0:13:46.280 UK's market cap is coming off of, of course, the 0:13:46.320 --> 0:13:50.000 electoral volatility that you were talking about, about five percent 0:13:50.080 --> 0:13:52.160 correction that you saw in the stock market. We'll call 0:13:52.200 --> 0:13:55.240 that a mini correction, if you will. For the equities 0:13:55.240 --> 0:13:56.920 they're seeing a little bit of a rebound today. But 0:13:56.960 --> 0:13:59.400 what you need to know over the weekend is not 0:13:59.520 --> 0:14:01.920 only is there this risk from the far right to 0:14:02.000 --> 0:14:05.440 Emmanuel mcran, a revamped perhaps of what we saw in 0:14:05.440 --> 0:14:08.880 twenty seventeen from Marine la Penn. Now he's dealing with 0:14:08.920 --> 0:14:11.280 it from the left to and this is significant when 0:14:11.280 --> 0:14:14.040 we're talking about policies that impact the markets, because this 0:14:14.080 --> 0:14:17.280 is a group that is not only now that he 0:14:17.320 --> 0:14:19.920 has to contend with for the snap legislative elections, but 0:14:20.000 --> 0:14:23.880 wants to reverse government pension reform, reinciate the right to 0:14:23.920 --> 0:14:26.920 retire at just sixty and this is a really big deal. 0:14:27.680 --> 0:14:29.440 A lot of French are very passionate about. It has 0:14:29.520 --> 0:14:31.880 led to a lot of protests on the streets, big 0:14:31.960 --> 0:14:34.640 trash bags, for example, across Paris as a sign of 0:14:34.680 --> 0:14:37.480 protests for a lot of the people include a lot 0:14:37.520 --> 0:14:41.680 of people who were protesting Emmanuel mccron increasing the potential 0:14:41.720 --> 0:14:44.480 retirement age to sixty three even sixty four in a 0:14:44.560 --> 0:14:48.200 way to kind of control the country's finances. Marine la 0:14:48.280 --> 0:14:50.000 Penn on the far right on the other hand, then 0:14:50.120 --> 0:14:54.160 talking about perhaps unleashing the spending caps. These are the 0:14:54.200 --> 0:14:57.120 concerns that the markets are worried about when it comes 0:14:57.120 --> 0:14:59.640 to what policies might be shaping France in the next 0:14:59.680 --> 0:15:00.440 couple weeks. 0:15:00.640 --> 0:15:03.080 Let's move on to the US. Oh, we've got the 0:15:03.120 --> 0:15:07.320 FED and we've gotten the more hawkish despite some of 0:15:07.360 --> 0:15:10.560 the data that we've seen. Give us an idea of 0:15:10.600 --> 0:15:13.480 what's on this front, because it's a very delicate balancing 0:15:13.520 --> 0:15:16.400 act for the Federal Reserve. At this point. You don't 0:15:16.440 --> 0:15:20.440 want inflation to rise or rise any further. At the 0:15:20.440 --> 0:15:22.880 same time, you don't want to trash the economy. 0:15:23.880 --> 0:15:25.480 You definitely don't. And I think this is where you 0:15:25.520 --> 0:15:27.960 put your J. Powell Powell thinking cap and say, look, 0:15:27.960 --> 0:15:29.960 you're data dependent, right, And I hate to use that 0:15:30.000 --> 0:15:32.240 word because it's so frustrating, But here's really where you 0:15:32.280 --> 0:15:34.440 need to keep in mind is what the data told us. 0:15:34.520 --> 0:15:37.320 Last week, you had CPI data that was prepped welcomed 0:15:37.400 --> 0:15:39.960 by the Fed, PPI numbers that were again welcomed by 0:15:39.960 --> 0:15:44.960 the Fed, showing that that disinflationary path is continuing. But 0:15:45.040 --> 0:15:48.120 then on Friday, those consumer sentiment numbers hitting a seven 0:15:48.320 --> 0:15:51.320 month low and really crashing even two thousand nine lows 0:15:51.360 --> 0:15:53.800 in certain parts of the market. Now this is concerning 0:15:53.880 --> 0:15:56.760 because if the economic data is showing that inflation is 0:15:56.800 --> 0:15:59.200 coming down, and you have job growth that is still 0:15:59.200 --> 0:16:02.480 picking up in still growing, why is consumer sentiment so 0:16:02.680 --> 0:16:05.880 low and how does that affects spending? Ability, especially ahead 0:16:05.920 --> 0:16:08.040 of the election. That really changed a little bit of 0:16:08.040 --> 0:16:10.360 the market pricing. Whereas the Fed said, look, there could 0:16:10.360 --> 0:16:13.480 be one cup this year, maybe even two, the marketers 0:16:13.520 --> 0:16:15.160 are saying, well, actually, this could be more and more 0:16:15.160 --> 0:16:17.400 of a twenty twenty five problem. And remember, the Fed 0:16:17.480 --> 0:16:20.080 is going to likely be on the sidelines as we 0:16:20.120 --> 0:16:22.320 get closer to the election. At least that's the assumption 0:16:22.720 --> 0:16:23.800 from Global Wall Street. 0:16:23.840 --> 0:16:27.000 Right now, you're listening to Bloomberg Daybreak today, your morning brief. 0:16:27.240 --> 0:16:30.680 The story's making news from Wall Street to Washington and beyond. 0:16:31.040 --> 0:16:33.800 Look for us on your podcast feed at six am 0:16:33.880 --> 0:16:37.560 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:37.600 --> 0:16:38.800 get your podcasts. 0:16:38.960 --> 0:16:41.360 You can also listen live each morning starting at five 0:16:41.360 --> 0:16:43.840 am Wall Street time on Bloomberg eleven three to zero 0:16:43.880 --> 0:16:46.640 in New York, Bloomberg ninety nine to one at Washington, 0:16:47.000 --> 0:16:49.880 Bloomberg one O six one in Boston, and Bloomberg nine 0:16:50.040 --> 0:16:51.360 sixty in San Francisco. 0:16:51.680 --> 0:16:54.840 Our flagship New York station is also available on your 0:16:54.880 --> 0:17:00.240 Amazon Election devices. Just say Alexa play Bloomberg eleven thirty US. 0:17:00.440 --> 0:17:03.400 Listen coast to coast on the Bloomberg Business app serious 0:17:03.600 --> 0:17:07.440 XM Channel one nineteen, the iHeartRadio app and on Bloomberg 0:17:07.480 --> 0:17:10.040 dot Com. I'm John Tucker, I'm. 0:17:09.920 --> 0:17:13.919 Tucker, and I'm Karen Moscow. Join us again tomorrow morning 0:17:14.040 --> 0:17:16.280 for all the news you need to start your day, 0:17:16.560 --> 0:17:18.440 right here on Bloomberg Daybreak