Macron's Political Gamble; Far Right Surges in EU Elections

Bloomberg Audio Studios, podcasts, radio news. Good morning. 0:00:10.600 --> 0:00:13.560 I'm Nathan Hager and I'm Amy Morris. Here are the 0:00:13.600 --> 0:00:15.520 stories we're following today. 0:00:15.480 --> 0:00:19.799 Amy Francis. Benchmark stock market is down nearly two percent. 0:00:19.920 --> 0:00:22.520 The euro is trading at a one month low. This 0:00:22.600 --> 0:00:26.880 comes after election results in Brussels. French President Emanuel mccron 0:00:27.040 --> 0:00:31.160 has plunged his country into political uncertainty, dissolving the lower 0:00:31.200 --> 0:00:35.000 House of Parliament and calling new legislative elections. That's after 0:00:35.040 --> 0:00:37.680 his party came a distant second to the Marine Le 0:00:37.840 --> 0:00:42.080 Panz far right in Sunday's European Parliament vote. Speaking to 0:00:42.240 --> 0:00:44.680 the nation after the polls closed, Macrone said, the National 0:00:44.720 --> 0:00:47.720 Assembly election is a chance to determine France's future. 0:00:48.360 --> 0:00:49.000 So this is you. 0:00:50.120 --> 0:00:53.120 This is a serious and weighty decision. 0:00:53.840 --> 0:00:56.840 It's an act of trust confidence. 0:00:56.480 --> 0:00:59.760 You mission, my dear compatriots, the ability of the French 0:00:59.760 --> 0:01:03.280 peace to make the just choice for themselvesmen and for 0:01:03.360 --> 0:01:04.480 future generations. 0:01:04.640 --> 0:01:07.920 I was French President Macron, speaking through an interpreter. Now, 0:01:07.920 --> 0:01:10.360 his position is head of state won't be directly affected 0:01:10.360 --> 0:01:13.680 by the upcoming vote, but his ability to push through legislation, 0:01:14.040 --> 0:01:16.360 the power to choose a like minded prime minister and 0:01:16.440 --> 0:01:19.120 the credibility of his political project will all be on 0:01:19.200 --> 0:01:22.679 the line in election that Sunday's results suggests he is 0:01:22.880 --> 0:01:24.720 likely to lose and Nathan. 0:01:24.760 --> 0:01:28.320 Far right parties also made gains elsewhere in Europe. In Germany, 0:01:28.400 --> 0:01:33.040 Chancellor Oloff Schultz Social Democrats recorded their worst ever EU result, 0:01:33.400 --> 0:01:36.120 following the third place behind the far right Alternative for 0:01:36.200 --> 0:01:39.679 Germany and the center right Christian Democrats. And in Italy, 0:01:39.920 --> 0:01:43.119 Prime Minister Georgia Maloney's right wing Brothers of Italy party 0:01:43.319 --> 0:01:45.600 won twenty nine percent of the vote, compared with just 0:01:45.959 --> 0:01:49.240 six percent in the twenty nineteen elections. Now, despite these results, 0:01:49.320 --> 0:01:52.559 the centrist alliance that backed Ursula Vonderland to become EU 0:01:52.640 --> 0:01:57.760 Commission President maintained its majority, led by her European People's Party. 0:01:58.360 --> 0:02:00.000 We won the European electtion. 0:02:01.000 --> 0:02:03.640 We are by far the strongest party. 0:02:04.200 --> 0:02:06.360 We are the anchor of stability. 0:02:06.600 --> 0:02:09.320 Herstel Of Vonderline plans to begin talks with our allies 0:02:09.360 --> 0:02:12.560 and the Socialist and Democrats and Centrist renew groups on 0:02:12.760 --> 0:02:14.280 securing their support. Today. 0:02:14.600 --> 0:02:17.840 Well, in Italy, I'm sorry. In India, Amy Prime Minister 0:02:17.880 --> 0:02:21.120 Narendramodi has been sworn into office for a third consecutive term, 0:02:21.160 --> 0:02:24.520 extending his leadership for another five years. That followed a 0:02:24.600 --> 0:02:28.400 bruising electoral setback that's forced him to share power in 0:02:28.400 --> 0:02:29.600 India for the first time. 0:02:30.080 --> 0:02:32.959 And we're seeing changes in the Israeli government. Benny Gantz, 0:02:33.000 --> 0:02:36.320 a centrist member of Israel's three man war cabinet, has 0:02:36.320 --> 0:02:41.080 announced his resignation, accusing Prime Minister Benjamin Nataniahu of mismanaging 0:02:41.120 --> 0:02:44.639 the war effort. We get more from Bloomberg's at Jumana Borsecci. 0:02:45.040 --> 0:02:47.600 The symbolism here is he, of course, was one of 0:02:47.639 --> 0:02:51.120 the more moderate members of the Natagna Who governments. And 0:02:51.240 --> 0:02:54.040 while it doesn't mean that the government itself is going 0:02:54.080 --> 0:02:57.600 to fall apart, because natagna Who will still have sixty 0:02:57.600 --> 0:03:00.520 four seats in the kanessset alongside his coalition partners, what 0:03:00.560 --> 0:03:03.280 it does mean is that he will be more reliant 0:03:03.320 --> 0:03:06.560 on some of those more right wing members of the governments, 0:03:06.639 --> 0:03:09.600 and one of them, the National Security Minister Ben Gavie, 0:03:09.760 --> 0:03:12.480 is actually pushing for a position on the war cabinets. 0:03:12.480 --> 0:03:15.280 He's one of the more hawkish members of the governments 0:03:15.320 --> 0:03:18.640 as it stands, and has been adamant that natagia who 0:03:18.639 --> 0:03:21.440 should not be signing onto this Biden ceasefire proposal. 0:03:21.880 --> 0:03:26.760 Bloomberg's Demani Brassecci says Gance joined Nettayahu's government shortly after 0:03:27.000 --> 0:03:28.959 the October seventh Tamas attack. 0:03:28.840 --> 0:03:32.480 And on the heels of Benny Gonz's resignation. Secretary of 0:03:32.520 --> 0:03:35.120 State Anthony Blincoln heads back to the Middle East today 0:03:35.200 --> 0:03:37.960 in a last ditch attempt to push a ceasefire deal. 0:03:38.320 --> 0:03:41.520 President Biden has put the proposal forward as an Israeli one, 0:03:41.560 --> 0:03:45.320 but both Israel and Hamas have distanced themselves from it. 0:03:45.680 --> 0:03:48.680 White House National Security Advisor Jake Sullivan says the ball 0:03:48.720 --> 0:03:50.000 is in Hamas's court. 0:03:50.240 --> 0:03:53.200 We're waiting for them to communicate to Kutar in Egypt, 0:03:53.480 --> 0:03:55.560 two of the mediators involved. 0:03:55.120 --> 0:03:57.480 In the hostage negotiations. 0:03:57.000 --> 0:03:59.800 And we are hopeful that with enough of a co 0:04:00.000 --> 0:04:02.960 trus the international community all speaking with one boy, Jamas 0:04:03.000 --> 0:04:04.000 will get to the right answer. 0:04:04.160 --> 0:04:07.160 National Security Advisor Jake Sullivan spoke on ABC's This Week 0:04:07.200 --> 0:04:10.600 Heard Sundays on Bloomberg Radio. Secretary of State Blincoln lends 0:04:10.600 --> 0:04:13.760 today in Egypt, he'll meet with senior officials, including President 0:04:13.800 --> 0:04:17.200 Abdolpha ta Lcci, and then he heads to Israel, where 0:04:17.200 --> 0:04:19.640 he is expected to meet with Prime Minister net Hanyahu, 0:04:20.160 --> 0:04:20.599 and then. 0:04:20.520 --> 0:04:22.880 Back here in the US. Donald Trump will be interviewed 0:04:22.920 --> 0:04:27.159 today by New York Probation officers. They'll submit a sentencing 0:04:27.240 --> 0:04:28.919 recommendation for the former president. 0:04:29.240 --> 0:04:29.400 Now. 0:04:29.400 --> 0:04:31.920 The interview will help determine how much time, if any, 0:04:32.000 --> 0:04:35.120 Trump will spend behind bars. It will be conducted virtually, 0:04:35.240 --> 0:04:38.080 Trump at his home in Florida and the probation officers 0:04:38.080 --> 0:04:41.600 in New York. Trump's sentencing is scheduled for July eleventh, 0:04:41.880 --> 0:04:45.920 after his conviction for falsifying business record records. Rather, he 0:04:46.000 --> 0:04:47.640 has vowed to appeal amy. 0:04:47.720 --> 0:04:51.400 Let's turn to markets now, a double dose of macroeconomic 0:04:51.440 --> 0:04:55.080 catalysts are coming on the same day. On Wednesday, we 0:04:55.120 --> 0:04:58.200 get a report on consumer prices in the morning, then 0:04:58.360 --> 0:05:02.679 that afternoon the FED make an interest rate decision. Mohammad Larian, 0:05:02.800 --> 0:05:06.320 Queen's College Cambridge president and Bloomberg opinion columnists, says last 0:05:06.320 --> 0:05:10.000 Friday stronger than expected jobs report all but rules out 0:05:10.040 --> 0:05:11.480 a rate cut this summer. 0:05:11.680 --> 0:05:14.120 Look, it's reasonable for a FED that is over the 0:05:14.200 --> 0:05:18.600 data dependent. There's no way they can cut or signal 0:05:18.640 --> 0:05:19.359 a cut in July. 0:05:19.480 --> 0:05:20.119 With this data. 0:05:20.600 --> 0:05:25.000 They would have to change their reaction function and be 0:05:25.080 --> 0:05:27.080 public about it, and I don't see the FED doing this, 0:05:27.200 --> 0:05:28.599 so that's why the door is shut. 0:05:28.760 --> 0:05:32.240 Mohammadel Aarian spoke on Bloomberg a last Friday, following the 0:05:32.240 --> 0:05:34.719 main jobs report and the options market sptting the S 0:05:34.760 --> 0:05:36.919 and P five hundred will move one and a quarter 0:05:37.000 --> 0:05:40.560 percent in either direction on Wednesday. 0:05:40.640 --> 0:05:43.400 And before we get all that economic data, investors are 0:05:43.440 --> 0:05:45.680 going to hear from Apple. The company is holding its 0:05:45.720 --> 0:05:50.600 developers conference later today. Bloomberg Intelligence tech analyst Matthew Bloxam 0:05:50.640 --> 0:05:53.400 says it'll show whether the iPhone maker can become a 0:05:53.480 --> 0:05:57.160 major player in the burgeoning field of artificial intelligence and 0:05:57.200 --> 0:05:59.400 whether that can drive sales. 0:05:59.320 --> 0:06:01.600 Big fans really about whether this's going to kickstart a 0:06:01.640 --> 0:06:04.440 new smartphone supercycle. Obviously, over the last few years we've 0:06:04.480 --> 0:06:07.800 seen smartphone sales generally on the slide, and if you 0:06:07.800 --> 0:06:10.480 look at the way this being positioned, these AI features 0:06:10.480 --> 0:06:12.440 that they're going to announce are only going to really 0:06:12.480 --> 0:06:14.960 be available on the new versions of the phone. So 0:06:15.040 --> 0:06:17.520 it's going to be does Apple do enough with these 0:06:17.560 --> 0:06:20.480 AI features to make people think, actually, I really want 0:06:20.520 --> 0:06:22.760 to upgrade to get access to these new features. 0:06:23.200 --> 0:06:26.880 Bloomberg Intelligence analyst Matthew Bloxam says the announcement will lay 0:06:26.920 --> 0:06:30.240 out that Apple is a serious player in the AI space. 0:06:33.600 --> 0:06:35.000 Time now for a look at some of the other 0:06:35.040 --> 0:06:37.520 stories making news in New York and around the world. 0:06:37.520 --> 0:06:41.080 And for that we're joined by Bloomberg's Michael bar Good morning, Michael. 0:06:40.839 --> 0:06:44.520 Good morning Amy. Former President Donald Trump zeroed in on 0:06:44.560 --> 0:06:49.320 his criminal conviction and prosecutors at a campaign rally in 0:06:49.480 --> 0:06:53.560 sweltering heat in Las Vegas Sunday afternoon. Trump also denounced 0:06:53.560 --> 0:06:56.360 Nevada's Democratic senator, who is up for reelection. 0:06:56.760 --> 0:07:00.120 With your help, we're going to when Nevada. We're going 0:07:00.120 --> 0:07:03.840 to defeat your Biden loving radical. 0:07:03.520 --> 0:07:06.000 Left senator Jackie Rosan, who's terrible. 0:07:06.880 --> 0:07:09.440 Those who attended the rally had mixed reviews of the 0:07:09.440 --> 0:07:13.400 former president. These Vegas voters talked about why they support 0:07:13.440 --> 0:07:13.960 Trump the. 0:07:14.040 --> 0:07:16.960 Decline in Biden. You're like, man, how can you vote 0:07:17.000 --> 0:07:18.080 for him? 0:07:18.280 --> 0:07:20.640 You know, are we better now than we were a 0:07:20.680 --> 0:07:21.280 few years ago? 0:07:21.360 --> 0:07:21.760 Probably not. 0:07:22.880 --> 0:07:24.160 You know, I'm myself a nun. 0:07:24.200 --> 0:07:29.640 Softly, however, this Vegas voter supported Nicki Haley before she 0:07:29.840 --> 0:07:32.520 dropped out of the race and is uneasy about seeing 0:07:32.560 --> 0:07:34.360 the former president back in office. 0:07:34.760 --> 0:07:38.680 The denial of fact scientific fact in the case of 0:07:38.760 --> 0:07:44.360 COVID to denial of the election are difficult for. 0:07:45.280 --> 0:07:49.400 Me to accept. Meanwhile, President Joe Biden warned against the 0:07:49.480 --> 0:07:53.520 rise of isolationism in the US while visiting an American 0:07:53.520 --> 0:07:57.560 military cemetery in France that Donald Trump skipped six years ago. 0:07:58.000 --> 0:08:01.480 Biden said he could not fathom the idea that I'd 0:08:01.520 --> 0:08:03.720 come to Normandy and not make the short trip here 0:08:03.760 --> 0:08:04.680 to pay tribute. 0:08:05.040 --> 0:08:09.840 I think it as a measure of a country's support 0:08:10.840 --> 0:08:14.120 for democratic failures that they honor those who've risked their 0:08:14.160 --> 0:08:15.680 lives and lost their lives. 0:08:15.680 --> 0:08:19.160 Biden said the World War One erasemetery was the final 0:08:19.200 --> 0:08:22.880 resting place for soldiers who fought in the deadly US 0:08:23.000 --> 0:08:26.680 Marine Corps battle. The criminal trial of President Joe Biden's 0:08:26.680 --> 0:08:30.239 son is heading into its final stretch. Hunter Biden's lawyers 0:08:30.240 --> 0:08:32.400 could call at least one more witness when the case 0:08:32.400 --> 0:08:36.640 resumes today in Delaware's federal court. Biden himself. He is 0:08:36.800 --> 0:08:40.000 charged with three felonies stemming from the October twenty eighteen 0:08:40.040 --> 0:08:43.120 purchase of a gun he had for about eleven days. 0:08:43.520 --> 0:08:46.760 Prosecutors say he lied on a mandatory gun purchase form 0:08:47.000 --> 0:08:51.040 by saying he was not illegally using or addicted to drugs. 0:08:51.360 --> 0:08:54.200 Global News twenty four hours a day and whenever you 0:08:54.240 --> 0:08:56.800 want it with the Bloomberg News. Now, I'm Michael Barr, 0:08:56.840 --> 0:08:58.440 and this is Bloomberg Gaming. 0:08:58.800 --> 0:09:04.280 All right, Thank you, Michael. 0:09:04.880 --> 0:09:05.120 Nine. 0:09:05.120 --> 0:09:07.200 Now for our Bloomberg Sports update, and for that we 0:09:07.280 --> 0:09:08.560 bring in John stash Hour. 0:09:08.600 --> 0:09:11.079 Good morning John, Good morning Amy. After Game one in 0:09:11.120 --> 0:09:14.120 the NBA Finals, Dallas coach Jason Kidds said Jalen Brown 0:09:14.320 --> 0:09:16.920 was the Celtics' best player. Some perceived that as a 0:09:16.920 --> 0:09:19.840 slight of Jason Tatum. What's clear through two games, Boston 0:09:20.360 --> 0:09:22.720 doesn't rely on one player, a big reason. They're fourteen 0:09:22.760 --> 0:09:24.160 and two in the playoffs. They're two wins from the 0:09:24.240 --> 0:09:27.320 championship in Boston. Tatum didn't shoot well six of twenty two, 0:09:27.720 --> 0:09:30.680 but Brown scored twenty one points, Drew Holliday at twenty six, 0:09:30.720 --> 0:09:33.600 shooting eleven of fourteen. South Picks beat them as one 0:09:33.640 --> 0:09:35.440 oh five ninety eight for a two to nothing series, 0:09:35.559 --> 0:09:38.800 leading on ESPN Holiday praise Tatum. 0:09:39.120 --> 0:09:41.040 I think I just got the opportunity. I would say 0:09:41.040 --> 0:09:43.240 a lot of it was JT was taking the basket. 0:09:43.240 --> 0:09:45.079 They were double teaming him and he was back in 0:09:45.120 --> 0:09:46.440 the right play. I don't know if he had a 0:09:46.440 --> 0:09:49.400 triple double, almost had not rebounds, but the way that 0:09:49.480 --> 0:09:50.959 he played to night, the way that he let us 0:09:51.440 --> 0:09:53.680 get into the paint, making plays, finding me wide open, 0:09:54.800 --> 0:09:55.439 it was alid on. 0:09:55.440 --> 0:09:57.760 Him look down such for Dallas scored thirty two at 0:09:57.800 --> 0:09:59.920 a triple double. You only scored three points of the fourth. 0:10:00.280 --> 0:10:03.160 He had eight turnovers. First words from Dan Hurley. Since 0:10:03.240 --> 0:10:06.240 news are the Lakers pursuing him, he said he's impressed 0:10:06.240 --> 0:10:09.120 by the Lakers, but loves coaching Yukon. Hurley says he'll 0:10:09.120 --> 0:10:12.800 make his decision today whether to change jobs at the stadium. 0:10:12.880 --> 0:10:15.160 Yankee Salva was one of the Dodgers winning six to 0:10:15.200 --> 0:10:17.800 four big three run homer six ending by Trent Grisham, 0:10:18.120 --> 0:10:20.400 who filled in all weekend for the still injured one 0:10:20.480 --> 0:10:23.240 so another homer for Aaron Judges, twenty fourth. He's hit 0:10:23.280 --> 0:10:26.560 eighteen in his last thirty four games. And London Mets 0:10:26.600 --> 0:10:28.640 didn't take their first lead till the ninetheenning then held 0:10:28.640 --> 0:10:30.240 on to the bottom of the game ending double play. 0:10:30.280 --> 0:10:33.000 They beat the Phillies six to five, Red Sox back 0:10:33.040 --> 0:10:35.200 to five hundred, beat the White Sox in ten innings 0:10:35.600 --> 0:10:38.360 Nationals a seven run fourth inning to meet Atlanta eight five, 0:10:38.400 --> 0:10:40.400 and the Oils finished to sweep at Tampa Bay ninety 0:10:40.400 --> 0:10:42.840 two Grand Slam for Adlie Ruschman. Twenty one year old 0:10:43.040 --> 0:10:46.040 Carlos Alcarez, the youngest to win Grand Slams on three 0:10:46.120 --> 0:10:49.760 different services, took the French Open final with Sasha Za 0:10:50.200 --> 0:10:52.560 Savera of coming back to the two sets to one deficit. 0:10:52.559 --> 0:10:54.400 He had done that in the semifinals as well. Scotti 0:10:54.440 --> 0:10:57.160 Scheffler won Memorial Golf in Ohio, his fifth win of 0:10:57.200 --> 0:10:59.760 the year. John Stashedwer Bloomberry's. 0:10:59.240 --> 0:11:06.320 Fourteen Coast to Coast on Bloomberg Radio nationwide on Sirius XM, 0:11:06.400 --> 0:11:09.320 and around the world on Bloomberg dot Com and the 0:11:09.360 --> 0:11:10.560 Bloomberg Business app. 0:11:10.800 --> 0:11:14.760 This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. It 0:11:14.920 --> 0:11:18.319 is attack to the right in Europe. Far right parties 0:11:18.360 --> 0:11:21.240 have handed massive defeats to German chants. They're all off 0:11:21.280 --> 0:11:25.040 Schultze and French President Emanuel mcclo in European Union elections 0:11:25.080 --> 0:11:28.839 over the weekend, and now mcclo is calling early elections 0:11:28.960 --> 0:11:31.040 of his own to try to stop the rise of 0:11:31.080 --> 0:11:36.000 his right wing rival perennial rival Marine Lapine in France. 0:11:36.040 --> 0:11:38.559 And for more we are joined by Bloomberg Daybreak Europe 0:11:38.600 --> 0:11:41.160 anchor Stephen Carroll, who has been very busy covering the 0:11:41.200 --> 0:11:45.760 EU elections for US from Brussels. Stephen, good morning. I 0:11:45.760 --> 0:11:49.640 think we knew going in that centrist parties were vulnerable, 0:11:49.800 --> 0:11:53.079 but just how much of a surprise was this result 0:11:53.120 --> 0:11:56.720 for the far right of really sweeping things in Germany 0:11:56.720 --> 0:11:57.200 and France. 0:11:57.720 --> 0:12:01.080 Well, that's what's really interesting, Nathan about this story is 0:12:01.080 --> 0:12:04.600 that actually the center held its majority in the European Parliament. 0:12:04.640 --> 0:12:08.120 So in a big pan European picture, not that much 0:12:08.240 --> 0:12:10.320 change for the parties that have been in power and 0:12:10.320 --> 0:12:12.920 that are likely to stay in power at least being 0:12:12.960 --> 0:12:16.000 able to nominate a European Commission president and for the 0:12:16.040 --> 0:12:19.240 next five years in the EU. It's the individual country 0:12:19.280 --> 0:12:21.920 stories where we're seeing those sort of reactions. So you 0:12:21.960 --> 0:12:25.280 mentioned Germany. The party of Olas Schultz, the chancellor in Germany, 0:12:25.320 --> 0:12:28.040 had its worst performance ever in a European parliament election. 0:12:28.320 --> 0:12:30.680 We saw an increase in support to the AfD, the 0:12:30.720 --> 0:12:34.000 far right party there, but also a shift to voters 0:12:34.040 --> 0:12:37.360 back to the CDU, the Christian Democrats, the party formerly 0:12:37.360 --> 0:12:40.240 of Angelo Merkel, so a shift towards the center right 0:12:40.320 --> 0:12:42.960 among voters there as well, the Greens too being punished 0:12:43.000 --> 0:12:46.760 in Germany. The French result is particularly interesting because, actually, 0:12:46.840 --> 0:12:49.520 if you compare it to opinion polls, the score that 0:12:49.640 --> 0:12:53.240 Emmanuel Macron's party got of just under fifteen percent and 0:12:53.360 --> 0:12:55.560 the score that Marie Le Penz party got on the 0:12:55.559 --> 0:12:58.360 far right of around thirty two percent, isn't that far 0:12:58.400 --> 0:13:01.280 off what polls were predicting. Even the surprise was what 0:13:01.280 --> 0:13:04.560 Emmanuel Macron decided to do about it. He's calling legislative 0:13:04.559 --> 0:13:06.840 elections that will happen now at the end of this 0:13:06.920 --> 0:13:09.040 month as two rounds of voting, so the thirtieth of 0:13:09.120 --> 0:13:12.200 June and the seventh of July, giving voter the chance 0:13:12.240 --> 0:13:15.679 to elect a new National Parliament and perhaps setting up 0:13:15.720 --> 0:13:20.479 one of these really wonderfully French political situations. It's called cohabitation. 0:13:20.559 --> 0:13:23.080 That's where you get a president from one party and 0:13:23.160 --> 0:13:25.960 a prime minister from another. He's essentially saying to the electorate, 0:13:26.040 --> 0:13:28.600 if you want to give the National Rally Party, that 0:13:28.679 --> 0:13:32.080 party of Marrying lapenat chance to govern, here's their chance. 0:13:32.280 --> 0:13:34.760 Knowing full well that he as president is safe in 0:13:34.800 --> 0:13:37.920 his job and he'll still remain retain a line share 0:13:37.920 --> 0:13:38.440 of the power. 0:13:38.720 --> 0:13:42.080 Yeah, what a fascinating move by the French president. It 0:13:42.080 --> 0:13:44.640 almost seems like it's becoming a theme in Europe. I mean, 0:13:44.720 --> 0:13:46.920 we saw Richie Sunek just a few weeks ago call 0:13:46.960 --> 0:13:49.400 an early election when his chips were down. I mean, 0:13:49.440 --> 0:13:52.480 how big a surprise is this that Emanuel mccrawl would 0:13:52.480 --> 0:13:55.360 call the snap election just a few hours after the 0:13:55.400 --> 0:13:56.760 results came in in Brussels. 0:13:57.360 --> 0:14:00.320 We're told from our sources in Paris that in fact, 0:14:00.400 --> 0:14:03.679 very few people, even within Emmanuel Macron's own circle, knew 0:14:03.720 --> 0:14:07.200 that this was coming until the last minute. So this 0:14:07.400 --> 0:14:10.400 was part obviously of Emmanuel macron strategy. He wanted to 0:14:10.440 --> 0:14:13.400 also surprise the electorate. If you think about it and 0:14:13.440 --> 0:14:15.880 take a step back, though, it's perhaps not that surprising 0:14:15.880 --> 0:14:18.800 because Emmanuel Macron, although his party is the largest in 0:14:18.840 --> 0:14:21.760 the French Parliament, doesn't have a majority and they've been 0:14:21.760 --> 0:14:26.040 struggling to get some key measures through the parliament so far. 0:14:26.160 --> 0:14:28.440 So the idea of throwing it open to an election, 0:14:29.040 --> 0:14:34.160 it wasn't entirely off the cars the cards. Rather, before 0:14:34.240 --> 0:14:36.960 this election, but he's taking a gamble. Some are calling 0:14:37.000 --> 0:14:40.280 it an audaciously bold step. Some are saying that it's 0:14:40.360 --> 0:14:42.280 a really big risk for Emmanuel Macron. 0:14:42.680 --> 0:14:45.960 Does this put the pressure on Germany's Chancellor all Off 0:14:45.960 --> 0:14:49.600 Schultz as well to call earlier elections given the result 0:14:49.960 --> 0:14:51.000 against his party. 0:14:51.520 --> 0:14:54.320 Not quite, because the political system works in a slightly 0:14:54.360 --> 0:14:57.640 different way in Germany. So actually pulling this sort of 0:14:57.680 --> 0:15:01.560 move wouldn't work under the German system because Olaf Schultz 0:15:01.560 --> 0:15:05.040 would lose power, whereas with Emmanuel Macron, because the Parliament 0:15:05.160 --> 0:15:07.640 only has some of the power and most of it 0:15:07.720 --> 0:15:10.800 lies with the president. Emmanuel Macron can do this knowing 0:15:10.840 --> 0:15:14.080 that he'll still be able to function as a president, 0:15:14.160 --> 0:15:17.520 although weakened in his role as head of state, whereas 0:15:17.560 --> 0:15:20.720 if Olaf Schultz did the same thing and lost the election, 0:15:20.960 --> 0:15:22.920 he would be out as chancellor and someone else would 0:15:22.960 --> 0:15:26.200 get in. So it speaks to the intricacies the individualities 0:15:26.200 --> 0:15:28.880 of the European political systems as well. It's worth pointing 0:15:28.880 --> 0:15:31.320 out that not all incumbents had a bad day. Georgia 0:15:31.320 --> 0:15:33.760 Maloney in Italy, her party is extremely well in these 0:15:33.760 --> 0:15:36.840 European elections, and in Spain, Pedro Sanchez managed to hold 0:15:36.880 --> 0:15:40.000 on to his level of support for his party. They 0:15:40.000 --> 0:15:42.440 came second, But when you look at what's happening over 0:15:42.440 --> 0:15:44.920 the border in France, I think perhaps he could be 0:15:44.960 --> 0:15:46.920 quite relieved that he came second in these elections. 0:15:47.200 --> 0:15:49.480 So just in our last thirty second, Stephen, what could 0:15:49.520 --> 0:15:52.320 these results mean for cohesion in the European Union. 0:15:53.000 --> 0:15:55.560 The European Union looks like it will proceed to nominate 0:15:55.560 --> 0:15:59.040 our slavanderline as the next European Commission President. That's in 0:15:59.080 --> 0:16:01.520 the gift of the leader. Then it goes to the Parliament, 0:16:01.520 --> 0:16:04.200 but on the numbers, they have the numbers in Parliament 0:16:04.200 --> 0:16:06.320 to be able to pass their the European commissioned President. 0:16:06.360 --> 0:16:09.360 But I've always with European politics, plenty can change between 0:16:09.360 --> 0:16:10.200 now and then. 0:16:10.840 --> 0:16:13.920 This is Bloomberg Daybreak Today, your morning brief on the 0:16:13.960 --> 0:16:17.440 stories making news from Wall Street to Washington and beyond. 0:16:17.560 --> 0:16:20.560 Look for us on your podcast feed by six am 0:16:20.680 --> 0:16:24.880 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:24.960 --> 0:16:26.080 get your podcasts. 0:16:26.320 --> 0:16:29.040 You can also listen live each morning starting at five 0:16:29.080 --> 0:16:31.640 am Wall Street time on Bloomberg eleven three to zero 0:16:31.720 --> 0:16:34.600 in New York, Bloomberg ninety nine to one in Washington, 0:16:34.680 --> 0:16:37.520 Bloomberg one oh six to one in Boston, and Bloomberg 0:16:37.640 --> 0:16:39.320 ninety sixty in San Francisco. 0:16:39.600 --> 0:16:43.160 Our flagship New York station is also available on your 0:16:43.280 --> 0:16:47.960 Amazon Alexa devices. Just say Alexa play at Bloomberg eleven 0:16:48.040 --> 0:16:48.760 thirty plus. 0:16:48.800 --> 0:16:52.360 Listen coast to coast on the Bloomberg Business app, SERRIUSXMVI 0:16:52.520 --> 0:16:55.400 iHeartRadio app, and on Bloomberg dot Com. 0:16:55.440 --> 0:16:58.960 I'm Nathan Hager and I'm Amy Morris. Join us again 0:16:59.000 --> 0:17:01.920 tomorrow morning, or all the news you need to start 0:17:01.960 --> 0:17:10.480 your day right here on Bloomberg Daybreak