Stocks at Record Highs; Tik Tok's Plan to Void Ban

Bloomberg Audio Studios, Podcasts, radio News. Good morning, I'm Nathan 0:00:12.119 --> 0:00:15.080 Hager and I'm Karen Moscow. Here are the stories we're 0:00:15.120 --> 0:00:15.920 following today. 0:00:16.239 --> 0:00:18.960 Karen, we have said this twenty nine other times this 0:00:19.079 --> 0:00:22.480 year on Bloomberg Daybreak. But once again stocks begin the 0:00:22.560 --> 0:00:26.040 day at all time highs, and it was tech stocks 0:00:26.120 --> 0:00:28.479 once again, driving the S and P five hundred to 0:00:28.560 --> 0:00:31.840 its thirtieth record close of the year, helping the Nasdaq 0:00:31.880 --> 0:00:36.080 one hundred come closer to the twenty thousand mark. Paul Christopher, 0:00:36.080 --> 0:00:39.680 head of Global Investment Strategy at Wells Fargo Investment Institute, 0:00:39.720 --> 0:00:42.720 says tech stocks may actually be the safe play. 0:00:43.000 --> 0:00:45.839 And maybe there's a certain extent to which even some 0:00:45.880 --> 0:00:49.760 of these high flying tech stocks have become defensives. If 0:00:49.800 --> 0:00:52.280 you think about the upcoming elections, if you think about 0:00:52.360 --> 0:00:55.200 the economy slowing down, Gee, should I buy staples or 0:00:55.200 --> 0:00:58.360 should I buy discrectionary aud Heck with it, I'm just 0:00:58.360 --> 0:00:59.840 going to buy something reliable and I'm going. 0:00:59.840 --> 0:01:00.360 To go tech. 0:01:00.520 --> 0:01:02.920 I think that's the mindset of some investors today. 0:01:02.960 --> 0:01:06.600 Also, that's Paul Christopher of Wells Fargo Investment Institute Long 0:01:06.680 --> 0:01:10.479 bets and the so called Magnificent seven technology behemoths now 0:01:10.560 --> 0:01:13.559 stand at sixty nine percent. That is among the most 0:01:13.600 --> 0:01:16.880 single crowded trades in history. According to an investor survey 0:01:16.920 --> 0:01:18.640 by Bank of America. 0:01:18.400 --> 0:01:21.119 Well Nathan has doog sit at record highe The debate 0:01:21.160 --> 0:01:25.120 over interest rates is still in focus. Philadelphia Fed President 0:01:25.160 --> 0:01:28.720 Patrick Harker says he sees one rate cut appropriate for 0:01:28.840 --> 0:01:29.319 this year. 0:01:29.959 --> 0:01:32.880 I have a forecast for inflation, employment and economic activity 0:01:33.360 --> 0:01:35.720 slowing but above trend growth, a modest rise in the 0:01:35.760 --> 0:01:40.679 unemployment rate, and a long glide back to target for inflation. 0:01:41.040 --> 0:01:45.960 If all of that happens to be as forecasted, I 0:01:46.000 --> 0:01:50.320 think one rate cut would be could be appropriate by 0:01:50.400 --> 0:01:50.840 your end. 0:01:51.520 --> 0:01:55.200 Philadelphia Fed President Patrick Harker also said he sees two 0:01:55.320 --> 0:01:58.400 cuts or none as possibilities, depending on the data. 0:01:58.760 --> 0:02:01.760 In Company News Group is putting one of its least 0:02:01.760 --> 0:02:04.840 glamorous businesses front and center today. More on that from 0:02:04.880 --> 0:02:06.120 Bloomberg's Doug Prisner. 0:02:06.360 --> 0:02:09.760 It's the services business, and it helps cities international clients 0:02:09.880 --> 0:02:12.880 manage and move cash globally. Today, the bank is aiming 0:02:12.919 --> 0:02:16.200 to show how the segment can boost profitability. It's already 0:02:16.240 --> 0:02:19.680 producing a growing share of cities profits, accounting for nearly 0:02:19.760 --> 0:02:23.400 half the total last quarter. At the bank's Manhattan headquarters, 0:02:23.400 --> 0:02:27.360 CEO Jane Fraser and CFO Mark Mason will pitch investors 0:02:27.360 --> 0:02:31.240 on the services business. Now typically cities, trading operations and 0:02:31.280 --> 0:02:35.520 credit card business attract more questions on earnings calls, although 0:02:35.520 --> 0:02:38.720 in April Fraser, not for the first time, called it 0:02:39.000 --> 0:02:41.920 the firm's crown jewel in New York. I'm Doug Prisoner 0:02:41.919 --> 0:02:42.680 Bloomberg Radio. 0:02:42.960 --> 0:02:46.040 All Right, Doug, thanks well. Boey CEO Dave Calhoun will 0:02:46.040 --> 0:02:49.360 be on Capitol Hill today for a hearing focusing on 0:02:49.400 --> 0:02:53.320 the planemakers safety culture. We get more from Bloomberg's Charlie Pellett. 0:02:53.480 --> 0:02:56.080 The hearing will put the CEO on the spot to 0:02:56.160 --> 0:03:00.480 defend his record and salvage his legacy as he prepares 0:03:00.520 --> 0:03:04.280 to step down later this year. Investors who have endured 0:03:04.320 --> 0:03:07.519 a thirty two percent stock slump this year and watched 0:03:07.600 --> 0:03:11.480 Boeing's credit rating come dangerously close to junk status, have 0:03:11.600 --> 0:03:17.160 already shifted their focus to Calhoun's yet undisclosed successor. Sources 0:03:17.160 --> 0:03:20.240 say the new chairman, Steve Mollenkopf, who took over as 0:03:20.280 --> 0:03:22.920 part of a senior management shake up in March, is 0:03:23.040 --> 0:03:25.919 leading the search for the next CEO, and the hunt 0:03:26.040 --> 0:03:29.440 has picked up speed in recent weeks. In New York, 0:03:29.639 --> 0:03:31.320 Charlie pet Bloomberg Radio. 0:03:31.360 --> 0:03:34.239 Thanks Charlie and other big companies in the government's crosshairs. 0:03:34.280 --> 0:03:38.040 The Federal Trade Commission is suing Adobe, accusing the software 0:03:38.040 --> 0:03:41.600 company of violating consumer protection laws by making it too 0:03:41.640 --> 0:03:46.280 difficult for consumers to cancel subscriptions. An Adobe spokesperson did 0:03:46.320 --> 0:03:49.280 not respond to a request for comment. Users of Adobe 0:03:49.280 --> 0:03:52.520 products have long complained about the expense of canceling subscriptions. 0:03:52.560 --> 0:03:55.680 Accessing Adobe Suite of apps can cost more than seven 0:03:55.800 --> 0:03:58.240 hundred dollars a year for individuals well. 0:03:58.320 --> 0:04:01.240 Turning to politics, now, Nathan in Biden is about to 0:04:01.240 --> 0:04:05.280 take sweeping action to protect undocumented migrants while trying to 0:04:05.360 --> 0:04:08.800 soften criticism about his actions at the border. We get 0:04:08.800 --> 0:04:11.400 the story from Bloomberg Steve Potisk in Washington. 0:04:11.600 --> 0:04:15.080 The President will announce a streamlined path to legal status 0:04:15.080 --> 0:04:18.160 for more than a half million immigrants. Under the new policy, 0:04:18.279 --> 0:04:21.400 spouses and children of US citizens who've been in the 0:04:21.440 --> 0:04:24.000 country at least a decade will be able to apply 0:04:24.160 --> 0:04:27.640 for permanent residency without having to leave the country first. 0:04:28.000 --> 0:04:30.320 The move could be a counterweight to an order the 0:04:30.360 --> 0:04:34.200 President signed earlier this month aimed at curbing asylum claims. 0:04:34.480 --> 0:04:37.560 The president plans to roll out the policy today at 0:04:37.560 --> 0:04:41.720 an anniversary event for Deferred Action for Childhood Arrivals, the 0:04:41.800 --> 0:04:45.919 Obama era program that protects undocumented migrants who came to 0:04:45.960 --> 0:04:50.520 the US as children. In Washington, Steve Potisk Bloomberg. 0:04:50.120 --> 0:04:52.120 Radio, Thank you, Stephen. We're getting a look at what 0:04:52.160 --> 0:04:55.000 foreign policy might look like if Donald Trump returns to 0:04:55.000 --> 0:04:58.480 the White House. From the former president's last national security advisor, 0:04:58.800 --> 0:05:01.880 Robert O'Brien, says the US should cut economic ties with 0:05:02.000 --> 0:05:06.320 China completely, consider moving the entire US Marine Corps to Asia, 0:05:06.680 --> 0:05:10.520 and resume live nuclear weapons tests. O'Brien lays out those 0:05:10.560 --> 0:05:14.280 proposals in an article set to appear in Foreign Policy Magazine. Now, 0:05:14.279 --> 0:05:16.919 there's no guarantee Trump would follow those ideas in a 0:05:16.960 --> 0:05:19.960 second term, but O'Brien says he has remained in regular 0:05:20.000 --> 0:05:23.360 contact with the former president. A State Department appointee who 0:05:23.440 --> 0:05:25.680 helped him prepare the article says he gave a copy 0:05:25.720 --> 0:05:26.800 too the Trump campaign. 0:05:27.240 --> 0:05:27.400 Well. 0:05:27.480 --> 0:05:31.000 Nathan TikTok's Chinese owner by Dance, has until this Thursday 0:05:31.040 --> 0:05:34.160 to explain the reason behind its lawsuit against the US. 0:05:34.520 --> 0:05:37.480 It's a high stakes bid to overturn a new law 0:05:37.520 --> 0:05:40.520 that would ban TikTok in the US unless by Dance 0:05:40.760 --> 0:05:43.159 sells it. But that lawsuit is going to test the 0:05:43.200 --> 0:05:47.599 secrecy of lawmakers briefings, and Bloomberg's Amy Morris explains. 0:05:47.320 --> 0:05:50.599 Congress members held a series of secret briefings before deciding 0:05:50.640 --> 0:05:52.480 to pass the law that could lead to a ban 0:05:52.560 --> 0:05:55.480 of TikTok in the US. By Dance suit in One 0:05:55.520 --> 0:05:58.240 of its main arguments is that Congress doesn't have any 0:05:58.360 --> 0:06:01.600 public proof of a nationals seecurity threat. Well, the challenge 0:06:01.640 --> 0:06:04.200 could make it to the Supreme Court, but it also 0:06:04.240 --> 0:06:07.640 poses a test of whether US federal agencies will divulge 0:06:07.680 --> 0:06:10.960 the national security secrets that they shared with lawmakers so 0:06:11.000 --> 0:06:14.520 they can defend the new law. Senator Richard Blumenthal argues 0:06:14.600 --> 0:06:17.320 that that wouldn't be necessary anyway, because the burden of 0:06:17.360 --> 0:06:21.400 proof falls to TikTok in Washington. Amy Morris Bloomberg Radio. 0:06:21.360 --> 0:06:24.080 Okay, Amy, thank you. Will be monitoring Russian President Vladimir 0:06:24.120 --> 0:06:26.720 Putin as he visits North Korea today for the first 0:06:26.800 --> 0:06:30.080 time in twenty four years. North Korea is suspected of 0:06:30.120 --> 0:06:32.960 sending missiles and millions of rounds of munitions to help 0:06:33.000 --> 0:06:36.720 Moscow continue its offensive in Ukraine. Melinda Herring, senior fellow 0:06:36.760 --> 0:06:39.280 at the Atlantic Council's Eurasia Center, says, while the trip 0:06:39.360 --> 0:06:42.839 is concerning, it is also a reminder of Putin's isolation 0:06:43.040 --> 0:06:44.080 on the world stage. 0:06:44.400 --> 0:06:46.480 One thing that I would keep by eye on is 0:06:46.640 --> 0:06:48.800 are they going to be cutting more deals to make 0:06:48.839 --> 0:06:51.480 sure that the Russians have enough shells too. I think 0:06:51.480 --> 0:06:55.160 it shows how isolated Vladimir Putin is. He doesn't have 0:06:55.320 --> 0:06:56.159 very many friends. 0:06:56.400 --> 0:06:57.480 He's got North. 0:06:57.279 --> 0:07:00.000 Korea, and he's got China and a few other people. 0:07:01.160 --> 0:07:03.839 The Atlantic Council's Melinda Herring says, the fresh delivery of 0:07:03.839 --> 0:07:06.599 billions of dollars in arms to Ukraine from the US 0:07:06.680 --> 0:07:09.400 and European allies will need to be bolstered by further 0:07:09.480 --> 0:07:10.760 support next year. 0:07:14.840 --> 0:07:16.040 Time now for a look at some of the other 0:07:16.200 --> 0:07:18.720 stories making news in New York and around the world. 0:07:18.800 --> 0:07:20.760 For that, we're joined by Bloomberg's Michael Barr. 0:07:20.880 --> 0:07:22.679 Michael, Good morning, Good morning, Karen. 0:07:22.760 --> 0:07:25.800 Extreme heat alerts remain in effect for tens of millions 0:07:25.840 --> 0:07:29.280 of people in the US as cities, including Chicago break 0:07:29.360 --> 0:07:32.720 heat records. States in the Midwest started to bake Monday 0:07:32.760 --> 0:07:35.600 in the dangerous heat wave that was expected to stretch 0:07:35.920 --> 0:07:39.560 from Iowa to Maine into at least Friday. The mid 0:07:39.600 --> 0:07:42.440 Atlantic and New England are likely to see highs in 0:07:42.480 --> 0:07:46.320 the nineties as the week progresses. Excessive humidity will make 0:07:46.360 --> 0:07:50.200 it feel even more oppressive. Officials are warning people to 0:07:50.240 --> 0:07:54.600 take precautions, such as drinking plenty of water and staying indoors. 0:07:54.880 --> 0:07:57.960 New York City Mayor Eric Adams says this is extremely 0:07:58.040 --> 0:07:59.480 hot for June. 0:07:59.400 --> 0:08:03.280 With climate chain leading to more frequent and intense heat. 0:08:04.160 --> 0:08:07.360 Summers are different than they were before, and so we 0:08:07.400 --> 0:08:11.160 should expect and be prepared for the hot weather that 0:08:11.280 --> 0:08:11.760 is coming. 0:08:12.120 --> 0:08:15.000 Mayor Adams is also urging New Yorkers to check on 0:08:15.240 --> 0:08:19.760 elderly neighbors and pets. Houston officials say they are ready 0:08:19.800 --> 0:08:23.000 for the first major taste of tropical weather this summer. 0:08:23.320 --> 0:08:27.520 A tropical cyclone is forecasted to hit Mexico and portions 0:08:27.560 --> 0:08:31.120 of Texas later today. It's about fifty miles southeast of Houston. 0:08:31.720 --> 0:08:35.160 Firefighters in the mountains north of Los Angeles are battling 0:08:35.240 --> 0:08:41.040 a sixteen thousand acre wildfire that has caused evacuations in Gorman, California. 0:08:41.080 --> 0:08:45.360 Firefighters who made some progress on Saturday and Sunday flames 0:08:45.360 --> 0:08:48.000 that were raging in the strong winds. However, people with 0:08:48.120 --> 0:08:53.480 respiratory problems have been worned to limit time outside. James Gore, 0:08:53.640 --> 0:08:57.320 a Sonoma County supervisor, remembers back to the twenty seventeen 0:08:57.360 --> 0:09:01.280 brush fire that caused very dangerous conditions. 0:09:01.120 --> 0:09:04.040 Tubs fire, the Snowma Complex fires. Everybody got caught on 0:09:04.080 --> 0:09:07.079 their heels, We got smoked. There was this mantra here 0:09:07.120 --> 0:09:10.280 that was never again, not never a fire again, but 0:09:10.360 --> 0:09:11.720 never get caught on your heels again. 0:09:12.200 --> 0:09:15.000 So far, the point Fanier is about twenty percent contained. 0:09:15.679 --> 0:09:19.400 Senate Democrats are set to advance legislation de band bump stocks. 0:09:19.440 --> 0:09:22.040 The vote could come as soon as today. It follows 0:09:22.080 --> 0:09:24.920 the Supreme Court ruling last week striking down a Trump 0:09:25.000 --> 0:09:27.920 Arab band. Senate majority leader Chuck Schumer of. 0:09:27.840 --> 0:09:32.800 New York Friday's ruling is yet another warnings that this 0:09:33.120 --> 0:09:37.240 MAGA Court is going off the deep end, aligning itself 0:09:37.280 --> 0:09:39.720 more and more with the most extreme elements of the 0:09:39.760 --> 0:09:40.199 hard right. 0:09:40.640 --> 0:09:43.960 Schumer says the Supreme Court has struck down freedom of choice, 0:09:44.080 --> 0:09:50.600 environmental protections, affirmative action, districting, gun safety and more. Global 0:09:50.640 --> 0:09:52.600 news twenty four hours a day and whenever you want 0:09:52.600 --> 0:09:55.240 it with Bloomberg News Now. I'm Michael Barr. This is 0:09:55.280 --> 0:09:56.360 Bloomberg Karen. 0:09:56.440 --> 0:10:04.120 Orright, Michael, Thank you time now for the Bloomberg Sports Update, 0:10:04.160 --> 0:10:06.360 which an stash hour John Good Morning. 0:10:06.160 --> 0:10:08.679 Morning Care. In the Boston Celtics had at dynasty of 0:10:08.720 --> 0:10:11.719 the nineteen sixties, won two titles in the seventies, three 0:10:11.800 --> 0:10:14.000 more in the eighties, had only won the NBA championship 0:10:14.040 --> 0:10:18.080 once since nineteen eighty six. That was one exactly sixteen 0:10:18.160 --> 0:10:20.240 years ago. And now the Celtics are once again the 0:10:20.320 --> 0:10:22.040 top the basketball world. 0:10:22.559 --> 0:10:27.000 Confetti guns shooting green and white confetti and making the 0:10:27.000 --> 0:10:31.120 most beautiful blizzard you have ever seen, rained down on 0:10:31.200 --> 0:10:36.120 a crowded court at TD Guardy. The final score Boston 0:10:36.160 --> 0:10:40.840 one oh six Dallas eighty eight. The Boston Celtics are 0:10:40.920 --> 0:10:43.960 world champions for the eighteenth Tome WVZ. 0:10:44.160 --> 0:10:46.640 Game five was a round. Celtics never trailed up by 0:10:46.679 --> 0:10:49.240 twenty at half times. Jason Tatum scored thirty one points. 0:10:49.240 --> 0:10:51.640 He had eleven assists. Jalen Brown at at twenty one. 0:10:51.679 --> 0:10:54.120 He was Finals MVP. Look at Donsons led Dallas with 0:10:54.160 --> 0:10:57.439 twenty eight. Celtics won four series, never lost more than 0:10:57.480 --> 0:11:00.000 one game in any of them. So the NBA season 0:11:00.160 --> 0:11:03.440 is over. Hockey might end tonight. Edmonton plays Game five 0:11:03.520 --> 0:11:06.000 at Florida. The Panthers lead three to one the Stanley Cup. 0:11:06.240 --> 0:11:08.520 We'll be in the house. What's gotten into the Mets. 0:11:08.559 --> 0:11:11.080 They had a stretch where they went ten to twenty five, 0:11:11.480 --> 0:11:13.400 but then arrow ride in a six game winstry. They've 0:11:13.440 --> 0:11:15.600 taken ten in the last twelve and it was fourteen 0:11:15.640 --> 0:11:19.280 to two in Texas. Mets had twenty two hits. Francisco 0:11:19.320 --> 0:11:22.760 Lindor had four, four other Mets had three. Brandon Immo 0:11:22.880 --> 0:11:25.920 drove in four. Red Sox won seven to three in Toronto. 0:11:26.040 --> 0:11:28.640 Yankees begining a big series the Stadium tonight. Baltimore comes 0:11:28.640 --> 0:11:30.680 in only game and a half behind, and the Yanks 0:11:30.679 --> 0:11:33.360 will be without Anthony Rizzo broke his hands Sunday. He's 0:11:33.400 --> 0:11:35.560 going to be out four to six weeks. Garrett Cole's 0:11:35.600 --> 0:11:38.000 been out all season. He's going to make his debut tomorrow, 0:11:38.040 --> 0:11:41.120 back from the elbow injury. When we last saw Rory McElroy, 0:11:41.120 --> 0:11:43.160 he was missing two short putts that cost him a 0:11:43.240 --> 0:11:45.240 chance to win the US Open. He bolted out of 0:11:45.320 --> 0:11:48.720 Pinehurst without speaking to the media. McElroy released a statement 0:11:49.040 --> 0:11:51.520 that called Sunday the toughest day of his career. He's 0:11:51.559 --> 0:11:55.000 withdrawn from this week's tournament near Hartford, says he'll return 0:11:55.040 --> 0:11:58.280 for the Scottish and British opens next month. John Stashanward, 0:11:58.280 --> 0:12:00.040 Bloomberg Sports Kndon Nathan. 0:12:02.120 --> 0:12:06.160 Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, 0:12:06.360 --> 0:12:09.240 and around the world on Bloomberg dot Com and the 0:12:09.280 --> 0:12:13.800 Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm 0:12:13.840 --> 0:12:14.520 Nathan hager. 0:12:14.559 --> 0:12:14.719 Well. 0:12:14.760 --> 0:12:17.080 Here we are again at a record high for the 0:12:17.160 --> 0:12:20.080 thirtieth time this year for the S and P five 0:12:20.160 --> 0:12:22.680 hundred and European stocks are joining in the rally this 0:12:22.760 --> 0:12:27.120 morning as well, Tech shares, driving past concerns once again 0:12:27.240 --> 0:12:30.800 about higher for longer interest rates and political uncertainty in Europe. 0:12:30.920 --> 0:12:35.000 Bloomberg Stocks reporter Joe Easton is with us this morning. Joe, 0:12:35.240 --> 0:12:39.720 good morning. This market just seems to keep defying the naysayers. 0:12:39.800 --> 0:12:42.960 I mean, are there many naysayers left at this point? 0:12:43.640 --> 0:12:45.839 Hey, Nathan, Well, there are a few. I mean, as 0:12:45.840 --> 0:12:48.760 you were saying, the stocks at a record yesterday, with 0:12:49.040 --> 0:12:51.760 the biggest gainers over in the tech space. Some of 0:12:51.800 --> 0:12:54.240 that due to, of course, predictions that the Fed will 0:12:54.280 --> 0:12:57.200 cut rates, though as you were mentioning, they're potentially less 0:12:57.240 --> 0:12:59.959 than some had hoped earlier this year. But the nice 0:13:00.360 --> 0:13:02.600 are the ones that say that potentially we are just 0:13:02.640 --> 0:13:05.839 seeing a bit of a bubble now on the bullish side, 0:13:05.920 --> 0:13:08.360 what you would look at is valuations, and in fact, 0:13:08.679 --> 0:13:11.920 valuations are a bit cheaper than they were at previous 0:13:12.000 --> 0:13:14.080 record high. So the S and P trading it just 0:13:14.160 --> 0:13:18.840 around twenty times earnings. Back in the big tech dot 0:13:18.880 --> 0:13:22.000 com bubble era, they were trading around thirty. So we 0:13:22.040 --> 0:13:25.480 can see that you can still get potentially some value 0:13:25.520 --> 0:13:27.679 in those stocks even though we are at records, and 0:13:27.960 --> 0:13:30.640 they are much more profitable companies than they were in 0:13:30.720 --> 0:13:33.600 previous cycles like that as well much better earnings outlook. 0:13:33.720 --> 0:13:37.000 So the bulls are definitely outweighing the bears and the 0:13:37.040 --> 0:13:38.600 naysayers on that front at the. 0:13:38.520 --> 0:13:41.520 Moment, certainly seems like they are. But it seems like 0:13:41.559 --> 0:13:44.040 we continue to ask the question as we've watched this 0:13:44.200 --> 0:13:46.760 rally throughout the year. What will it take to get 0:13:46.800 --> 0:13:49.880 a little more breadth in this rally? Is it going 0:13:49.920 --> 0:13:54.120 to continue to stay concentrated in these megacap stocks that've 0:13:54.120 --> 0:13:55.720 gotten so much of the attention this year. 0:13:56.679 --> 0:13:58.800 Yeah, Well, you're going to need to see some actual 0:13:58.920 --> 0:14:01.800 economic data act showing improvements in the economy. So we've 0:14:01.840 --> 0:14:04.440 seen a bit of an easy obviously an inflation and 0:14:04.480 --> 0:14:07.120 that's feeding into the narrative that the FED can start 0:14:07.120 --> 0:14:09.040 cutting rates, and not just the FED but around the 0:14:09.040 --> 0:14:10.839 world as well. But you need to see some better 0:14:10.880 --> 0:14:14.559 growth in terms of job creation, in terms of unemployment, 0:14:14.840 --> 0:14:18.839 and other key macroeconomic metrics. Until you get that, it's 0:14:18.880 --> 0:14:21.480 basically going to be driven by the Fed, by tech, 0:14:21.560 --> 0:14:24.880 maybe by continued hopes around AI, which was obviously the 0:14:24.880 --> 0:14:28.280 big theme of over the past year, alongside the rate cuts. 0:14:28.320 --> 0:14:31.960 Without the economic data alongside, it's just going to be 0:14:32.000 --> 0:14:34.160 tech fueling the rally at the moment, I think. 0:14:34.080 --> 0:14:35.920 And in terms of the rally that we're seeing this 0:14:36.000 --> 0:14:40.200 morning in the European session, have a European investors kind 0:14:40.200 --> 0:14:43.520 of gotten past some of the political uncertainty that we've 0:14:43.560 --> 0:14:45.960 been concerned about, or that a lot of investors have 0:14:46.000 --> 0:14:50.680 been concerned about. Following the snap election announcement from President Macron. 0:14:51.600 --> 0:14:55.400 Yeah, so that's snap legisative election announced by Micron. That 0:14:55.480 --> 0:14:57.800 was a bit of a sucker punch for European investors. 0:14:57.880 --> 0:15:00.280 Last week we saw the CAC forty really dry, having 0:15:00.400 --> 0:15:03.720 so much fear and uncertainty across the market. The CAC 0:15:03.800 --> 0:15:07.520 forty fell around five percent after initially falling more than 0:15:07.520 --> 0:15:11.000 that and recovering. But there are people in the market today, 0:15:11.000 --> 0:15:14.240 including Berkeley's, saying that potentially this is overdone and it 0:15:14.240 --> 0:15:16.720 gives you a good chance to buy into stocks that 0:15:16.920 --> 0:15:19.680 are quality to the likes of LVMH, even some of 0:15:19.720 --> 0:15:23.080 the Bank's credit, Agricole, sock Gen companies like this that 0:15:23.160 --> 0:15:25.360 have seen a sell off. It's a chance to buy 0:15:25.360 --> 0:15:28.240 in at a low level because the political outlook in 0:15:28.280 --> 0:15:31.800 France potentially won't change that much. It might be more difficult, 0:15:31.800 --> 0:15:34.600 slightly more difficult on the margins for Mcron and his 0:15:34.680 --> 0:15:37.600 government to get laws through parliament if there is a 0:15:37.600 --> 0:15:42.360 big change in the legislative legislative makeup, but the outlook 0:15:42.400 --> 0:15:45.240 pretty much remains the same in terms of the economy 0:15:45.240 --> 0:15:48.000 and the political outlook in France. Potentially it's a good 0:15:48.120 --> 0:15:49.440 chance to buy at the low. 0:15:49.720 --> 0:15:52.800 This is Bloomberg Daybreak Today, your morning brief and the 0:15:52.840 --> 0:15:56.200 story's making news from Wall Street to Washington and beyond. 0:15:56.520 --> 0:15:59.280 Look for us on your podcast feed at six am 0:15:59.360 --> 0:16:03.040 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:03.080 --> 0:16:04.160 get your podcasts. 0:16:04.400 --> 0:16:07.080 You can also listen live each morning starting at five 0:16:07.120 --> 0:16:09.720 am Wall Street Time, on Bloomberg eleven three to zero 0:16:09.760 --> 0:16:13.240 in New York, Bloomberg ninety nine one in Washington, Bloomberg 0:16:13.280 --> 0:16:16.280 one oh sixty one in Boston, and Bloomberg ninety sixty 0:16:16.400 --> 0:16:17.360 in San Francisco. 0:16:17.720 --> 0:16:20.880 Our flagship New York station is also available on your 0:16:20.920 --> 0:16:26.400 Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus. 0:16:26.400 --> 0:16:29.960 Listen coast to coast on the Bloomberg Business app, seririusxmb 0:16:30.160 --> 0:16:34.200 iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager. 0:16:34.000 --> 0:16:37.120 And I'm Karen Moscow. Join us again tomorrow morning for 0:16:37.240 --> 0:16:39.760 all the news you need to start your day right 0:16:39.800 --> 0:16:41.440 here on Bloomberg Daybreak