Investors Await Inflation Data; Biden-Trump Debate Preview

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 --> 0:00:16.320 following today, Aaron. 0:00:16.360 --> 0:00:19.120 Traders are gearing up for a week of political risks 0:00:19.200 --> 0:00:22.439 and inflation data as we close out the first. 0:00:22.120 --> 0:00:23.639 Half of twenty twenty four. 0:00:24.000 --> 0:00:27.440 Investors will be closely monitoring the first US presidential debate, 0:00:27.520 --> 0:00:30.160 while the first round of voting in the French legislative 0:00:30.200 --> 0:00:32.839 election is set to take place this weekend. As for 0:00:32.880 --> 0:00:35.839 the inflation data that comes Friday with the Federal Reserves 0:00:35.880 --> 0:00:40.239 Preferred Gage of consumer prices, the PCE deflator. Nancy Tangler, 0:00:40.360 --> 0:00:43.800 CEO at Laffertangler Investment still thinks earnings is. 0:00:43.760 --> 0:00:44.839 The key, you know. 0:00:44.880 --> 0:00:47.920 I think you ignore at this point what the Fed 0:00:48.040 --> 0:00:52.400 is saying, what data they're depending on this next meeting, 0:00:52.720 --> 0:00:57.440 because the trend line in corporate earnings is positive and 0:00:57.760 --> 0:01:00.600 margins are expanding. Now not every company we saw it 0:01:00.680 --> 0:01:03.800 last quarter. If you missed on any metric, you got clabbered. 0:01:04.440 --> 0:01:07.360 Nancy Tangler of Laffertangler Investments notes the S and P 0:01:07.480 --> 0:01:09.839 five hundred has risen three weeks in a row. 0:01:10.360 --> 0:01:13.000 Well, Nathan, the stock bull run may have a very 0:01:13.040 --> 0:01:16.600 little upside. That's the conclusion of our latest Bloomberg survey, 0:01:16.640 --> 0:01:19.200 and we get the details from Bloomberg's Jeff Bellager. 0:01:19.800 --> 0:01:22.360 The twenty twenty four rally has driven the S and 0:01:22.400 --> 0:01:25.920 P five hundred to thirty one record closing highs, and 0:01:26.000 --> 0:01:29.520 according to the latest Bloomberg Markets Live Pulse survey of 0:01:29.600 --> 0:01:33.440 almost six hundred respondents, that has left the asset class 0:01:33.440 --> 0:01:38.000 more overpriced than US credit or gold. Investors aren't looking 0:01:38.040 --> 0:01:40.800 to hit the sell button just yet, but signs of 0:01:40.840 --> 0:01:44.680 skittishness are evident, as about half of survey takers say 0:01:44.760 --> 0:01:47.360 stocks will see the beginning of a correction of at 0:01:47.440 --> 0:01:51.400 least percent this year. Thirty five percent say that will 0:01:51.400 --> 0:01:55.600 happen in twenty twenty five. Artificial intelligence, a key driver 0:01:55.760 --> 0:01:59.280 of the market's almost fifteen percent advanced this year, is 0:01:59.320 --> 0:02:02.000 seen as the more most likely trigger for a sell off. 0:02:02.280 --> 0:02:04.200 Jeff Beldinger, Bloomberg Radio. 0:02:04.360 --> 0:02:06.480 All right, Jeff, thanks so ahead of inflation data at 0:02:06.480 --> 0:02:08.280 the end of the week. The other key event for 0:02:08.360 --> 0:02:12.440 investors and voters comes this Thursday night. That's when President 0:02:12.440 --> 0:02:15.280 Biden and former President Trump meet for their first debate 0:02:15.400 --> 0:02:18.959 hosted by CNN. Senator Elizabeth Warren is on the Biden 0:02:19.000 --> 0:02:22.120 campaign's national Advisory Board. She says the debate will draw 0:02:22.160 --> 0:02:23.239 a clear contrast. 0:02:23.800 --> 0:02:28.040 If Donald Trump is elected to the presidency, he and 0:02:28.120 --> 0:02:33.720 the extremist Republicans are coming after abortion, contraception, and IVF 0:02:34.080 --> 0:02:36.919 in every single state in this country. 0:02:37.160 --> 0:02:40.200 Senator Warren spoke on ABC's This Week. The ninety minute 0:02:40.200 --> 0:02:43.240 debate will include no audience. The candidate's microphones will be 0:02:43.360 --> 0:02:46.200 turned off when it's not their turn to speak. Republican 0:02:46.200 --> 0:02:49.160 Governor Christy Nome of South Dakota was asked on NBC's 0:02:49.200 --> 0:02:51.359 Meet the Press if former President Trump will be able 0:02:51.400 --> 0:02:53.040 to back off personal insults. 0:02:53.440 --> 0:02:54.799 You know, I don't think that he has to talk 0:02:54.840 --> 0:02:58.000 about get personal in this debate at all, because he's 0:02:58.000 --> 0:03:00.280 going to have so many good things to talk about 0:03:00.320 --> 0:03:02.160 in contrast with Joe Biden's policies. 0:03:02.360 --> 0:03:04.200 Meet the Press and This Week can be heard every 0:03:04.280 --> 0:03:06.960 Sunday on Bloomberg Radio, and you can hear the CNN 0:03:06.960 --> 0:03:10.520 debate on Bloomberg Radio or watch it on Bloomberg Television. 0:03:10.560 --> 0:03:13.679 Our coverage starts Thursday night with a special edition of 0:03:13.720 --> 0:03:16.840 Bloomberg Balance of Power with Joe Matthew and Kaylee lines 0:03:17.120 --> 0:03:19.200 starts at eight pm Wall Street Time. 0:03:19.680 --> 0:03:22.400 Well Nathan Now to the elections in France. Marine Le 0:03:22.560 --> 0:03:26.160 Penn's far right National Rally has made further gains ahead 0:03:26.160 --> 0:03:29.720 of the first round of France's snap legislative election on Sunday. 0:03:30.000 --> 0:03:33.400 According to Bloomberg's poll of polls, the party has increased 0:03:33.400 --> 0:03:35.960 its lead by zero point three points to thirty four 0:03:35.960 --> 0:03:39.680 point two percent. President Emanuel Macron dissolved the lower House 0:03:39.680 --> 0:03:42.560 of Parliament earlier this month and called the snap legislative 0:03:42.640 --> 0:03:46.520 vote after his group was trounced in European Parliament elections. 0:03:46.720 --> 0:03:48.560 It's Suir now Karen to the latest on the war 0:03:48.600 --> 0:03:51.440 in the Middle East. Israeli Prime Minister Benjamin Netanyah who 0:03:51.440 --> 0:03:54.480 says intense fighting in Gaza will come to an end shortly. 0:03:54.640 --> 0:03:57.320 In his first major interview with an Israeli media outlet 0:03:57.400 --> 0:04:01.320 since the October seventh Hamas attacks Netanya who also directly 0:04:01.440 --> 0:04:04.400 rejected the prospect of a ceasefire deal with Hamas that 0:04:04.480 --> 0:04:07.160 could eventually lead to the end of the war. Bloomberg 0:04:07.240 --> 0:04:08.640 zed Baxter has the latest. 0:04:09.160 --> 0:04:09.520 PM. 0:04:09.520 --> 0:04:12.880 Benjamin NETANYAHUO is now saying that intense operations in Gaza 0:04:12.920 --> 0:04:16.680 will end very soon. He says the next step will 0:04:16.680 --> 0:04:19.200 be to get some troops into the North to counter 0:04:19.279 --> 0:04:23.120 has Belah aggressions and to bring some students back from 0:04:23.120 --> 0:04:25.719 where they were evacuated. He says he wants to do 0:04:25.760 --> 0:04:30.000 it by diplomatic means, but if not, he'll go another way. Meanwhile, 0:04:30.000 --> 0:04:33.479 he's sending Foreign Minister Job Gallant to the US to 0:04:33.520 --> 0:04:37.120 talk about additional aid, which he says has been slowed down. 0:04:37.520 --> 0:04:42.360 The US has consistently denied the allegation. Aed Baxter, Bloomberg 0:04:42.440 --> 0:04:43.360 Radio all Right. 0:04:43.320 --> 0:04:46.640 Ed Thanks and Company News. Federal prosecutors have, according to 0:04:46.720 --> 0:04:50.560 Reuter's recommended Moeing face criminal charges, and shares are down 0:04:50.560 --> 0:04:53.039 two thirds of a percent. This morning, we get details 0:04:53.080 --> 0:04:54.440 from Bloomberg's dun Chrisner. 0:04:55.000 --> 0:04:58.800 The charges would stem from violating a deferred prosecution agreement. 0:04:59.000 --> 0:05:01.239 It was put in place in twenty twenty one after 0:05:01.320 --> 0:05:04.960 two seven thirty seven MAX fatal crashes. In May, the 0:05:05.000 --> 0:05:09.479 DOJ determined Boeing breach the agreement. The company disagreed. Now, 0:05:09.600 --> 0:05:13.560 senior Justice Department officials have received a recommendation to bring 0:05:13.680 --> 0:05:17.000 criminal charges. The question is will they and if so, 0:05:17.320 --> 0:05:20.680 what type they could extend beyond the original twenty twenty 0:05:20.720 --> 0:05:25.800 one fraud conspiracy charge. Alternatively, instead of prosecuting Boeing, the 0:05:25.880 --> 0:05:28.640 DOJ could extend the twenty twenty one settlement by a 0:05:28.720 --> 0:05:32.760 year or propose new stricter terms. In New York, I'm 0:05:32.800 --> 0:05:34.440 Doug Prisoner, Bloomberg Radio. 0:05:34.279 --> 0:05:35.080 All right ed Thanks. 0:05:35.360 --> 0:05:38.160 Apple has been hit with a formal warning from European 0:05:38.240 --> 0:05:42.880 Union antitrust enforcers for allegedly stifling competition on its app store. 0:05:43.120 --> 0:05:46.200 The European Commission says Apple must allow app developers to 0:05:46.200 --> 0:05:48.800 steer users to cheaper deals and offers. 0:05:48.440 --> 0:05:49.760 Outside of the app store. 0:05:50.120 --> 0:05:52.680 The new order comes under the EU's Digital Markets Act, 0:05:52.680 --> 0:05:54.720 which lays out a raft of dues and don'ts for 0:05:54.800 --> 0:05:56.719 some of the world's largest tech platforms. 0:05:56.880 --> 0:05:57.320 Monday is. 0:05:57.480 --> 0:06:00.680 Today's announcement is a preliminary step that follows similar move 0:06:00.720 --> 0:06:03.279 the EU made against Apple in March, which came with 0:06:03.320 --> 0:06:05.320 a one point nine billion dollar penalty. 0:06:05.839 --> 0:06:09.120 Well Nathan Bloomberg News has learned by Dance and Broadcom 0:06:09.200 --> 0:06:12.599 or in talks to develop an advanced artificial intelligence ship. 0:06:12.760 --> 0:06:15.840 Sources say the US chip designer and Beijing based by 0:06:16.000 --> 0:06:19.640 Dance have talked about a five nanometer purpose built ship. 0:06:19.960 --> 0:06:22.400 No deal has yet been reached between the two companies, 0:06:22.400 --> 0:06:26.920 and Broadcom already supplies an older generation processor for use 0:06:26.960 --> 0:06:28.599 in Buytedance's data centers. 0:06:28.880 --> 0:06:31.880 Finally, Karen, there were several arrests on the eighteenth Green 0:06:31.920 --> 0:06:36.599 at the PGA's Travelers Championship yesterday. Six climate protesters stormed 0:06:36.640 --> 0:06:39.359 the green with smoke bombs as the leaders lined up 0:06:39.360 --> 0:06:42.159 to putt Each of those protesters was charged with first 0:06:42.160 --> 0:06:45.559 degree mischief, first degree criminal trespass, and breach of peace. 0:06:45.920 --> 0:06:48.719 The world's top golfer, Scottie Scheffler, says he was trying 0:06:48.720 --> 0:06:49.640 not to lose focus. 0:06:49.920 --> 0:06:52.040 When something like that happens, you don't really know what's happening, 0:06:52.080 --> 0:06:53.600 so it can kind of rattle you a little bit, 0:06:53.640 --> 0:06:55.960 just because there's people running around the green, and there's 0:06:55.960 --> 0:06:57.800 police officers run around the green, and you don't know 0:06:58.279 --> 0:07:00.880 if they're peaceful, you don't know what they're You have 0:07:00.920 --> 0:07:02.240 no idea what's going on, and so it can be 0:07:02.240 --> 0:07:04.440 a bit stressful. But fortunately I was out there and 0:07:04.480 --> 0:07:06.400 you could kind of see me and actually talking to 0:07:06.400 --> 0:07:07.840 each other for a Miney and Tom talking to each 0:07:07.839 --> 0:07:09.880 other for a minute, just basically trying to calm down. 0:07:09.960 --> 0:07:12.200 Man Scottie Scheffler did calm down. He shrugged off the 0:07:12.200 --> 0:07:15.400 protest to win the Travelers Championship on the first whole 0:07:15.440 --> 0:07:19.000 of sudden Death, narrowly edging out Tom Kim. Scheffler closed 0:07:19.000 --> 0:07:21.480 the weekend at twenty two under two, secure his sixth 0:07:21.520 --> 0:07:23.400 win of the year, the most in one season on 0:07:23.440 --> 0:07:26.760 the PGA Tour since Tiger Woods's six victories in two 0:07:26.800 --> 0:07:30.280 thousand and nine. It's also the most before July since 0:07:30.480 --> 0:07:36.280 Arnold Palmer won six in nineteen sixty two. 0:07:36.880 --> 0:07:38.160 And it's time now for a look at some of 0:07:38.200 --> 0:07:40.440 the other stories making news in New York and around 0:07:40.480 --> 0:07:42.920 the world. For that, we're joined by Bloomberg's Michael Barr. 0:07:43.040 --> 0:07:44.760 Michael, good Morning, Good morning, Karen. 0:07:44.800 --> 0:07:48.360 Officials Warren beachgoers beware that there is a high risk 0:07:48.400 --> 0:07:51.560 of rip currents along the eastern end Gulf Coast, with 0:07:51.680 --> 0:07:55.840 several drownings reported from Florida to New York. Beaches in 0:07:55.920 --> 0:07:58.360 Long Island and New Jersey all the way down to 0:07:58.400 --> 0:08:01.760 North Carolina and Florida at high risk. The height and 0:08:01.800 --> 0:08:04.880 alerts coming as authorities called off the search for two 0:08:04.960 --> 0:08:08.720 teenage boys ages sixteen and seventeen, who went missing near 0:08:08.840 --> 0:08:13.080 jacob Riest Park in Queens on Friday. NYPD Deputy Commissioner 0:08:13.160 --> 0:08:14.160 Kas Dauntry. 0:08:14.080 --> 0:08:17.240 Away was extremely high and it went on top of 0:08:17.320 --> 0:08:17.640 them and. 0:08:17.600 --> 0:08:18.280 Sucked them over. 0:08:19.080 --> 0:08:23.240 Witnesses say the teens were swept away shortly after lifeguards 0:08:23.280 --> 0:08:27.800 went off duty. The NYPD is in high alert following 0:08:27.840 --> 0:08:29.160 the latest attacks. 0:08:29.200 --> 0:08:29.640 Abroad. 0:08:30.240 --> 0:08:34.199 Russian authorities say more than fifteen police officers and several civilians, 0:08:34.440 --> 0:08:38.200 including an Orthodox priest, have been killed by armed militants 0:08:38.280 --> 0:08:41.640 in the southern Republic of Dakistan. They say the guvernment 0:08:41.720 --> 0:08:45.560 opened fire on two Orthodox churches, a synagogue, and a 0:08:45.600 --> 0:08:50.320 police post in two cities Sunday. Russia's National Anti Terrorists 0:08:50.320 --> 0:08:54.320 Committee described the attacks in the predominantly Muslim region with 0:08:54.440 --> 0:08:59.000 a history of armed militancy, as terrorist acts. Police say 0:08:59.040 --> 0:09:02.000 they have killed at lee six of the attackers. Today, 0:09:02.120 --> 0:09:05.720 Tuesday and Wednesday are declared days of morning in the region. 0:09:06.080 --> 0:09:09.120 The death toll has climbed a fort and Friday is random. 0:09:09.160 --> 0:09:12.400 Mass shooting at the grocery store in Arkansas, State police 0:09:12.440 --> 0:09:14.679 say a twenty three year old who was a nurse 0:09:14.920 --> 0:09:18.440 died Sunday. Kelly Weams was rendering aid when she was 0:09:18.480 --> 0:09:22.880 fatally shot in Fordyce. Her mother, Helen Browning, she left God. 0:09:23.400 --> 0:09:26.920 She loved her daughter, she loved her family, and. 0:09:29.040 --> 0:09:31.480 Police said the suspect who was arrested was armed with 0:09:31.559 --> 0:09:35.160 a twelve gage shot gun, epistol and extra shot gun rounds. 0:09:35.600 --> 0:09:38.000 Her three days day, nut fired. The other three victims 0:09:38.080 --> 0:09:41.040 killed eighty one year old Ellen Shrum, sixty two year 0:09:41.040 --> 0:09:44.280 old Shirley Taylor, and fifty year old to Roy Sturgis. 0:09:45.000 --> 0:09:47.600 Rochester Police say six people were shot at a city 0:09:47.640 --> 0:09:50.480 park early Sunday morning, and one officer was injured responding 0:09:50.480 --> 0:09:53.520 to the scene. Officers responded to the sound of gun 0:09:53.520 --> 0:09:56.439 shots at MLK Park after the park had closed for 0:09:56.480 --> 0:09:59.840 the night. Rochester Police Chief David Smith says an officer 0:10:00.160 --> 0:10:02.200 injured in a fight with someone at the scene. 0:10:02.360 --> 0:10:05.600 While continuing to work to disperse the crowd and provide 0:10:05.640 --> 0:10:09.360 treatment to the victims, thirty eight year old Joshua Sanchez 0:10:09.800 --> 0:10:13.200 actively blocked the officers and then began to fight with officers. 0:10:13.280 --> 0:10:15.440 Chief Smith says it looks like they were all part 0:10:15.480 --> 0:10:18.280 of the same gathering global news twenty four hours a 0:10:18.360 --> 0:10:20.800 day and whenever you wanted with the Bloomberg News. Now, 0:10:20.880 --> 0:10:22.720 I'm Michael Barr This is Bloomberg Carrot. 0:10:22.880 --> 0:10:29.440 All right, Michael Barr, thank you time now for the 0:10:29.440 --> 0:10:32.520 Bloomberg Sports Update with John Stanshawer, John Good. 0:10:32.400 --> 0:10:33.480 Mornings, Good morning Carrot. 0:10:33.520 --> 0:10:36.360 Mets and the Yankee started many two game Subway series 0:10:36.400 --> 0:10:38.720 tomorrow night City Field. It's the Mets that are hot, 0:10:38.760 --> 0:10:40.520 the Yanks or not. Mets have won nine at the 0:10:40.559 --> 0:10:43.480 last eleven. Yanks have lost six of eight. They've lost 0:10:43.520 --> 0:10:46.679 their last three series before which they had only dropped 0:10:46.679 --> 0:10:49.120 three series all season. At the Stadium Atlanta one three 0:10:49.160 --> 0:10:51.559 that one of the Yankees have acquired J. D. Davis 0:10:51.840 --> 0:10:53.359 in a trade with Oakland. 0:10:53.000 --> 0:10:53.960 So they added X. 0:10:54.120 --> 0:10:56.480 Met the Mets at really last night had an ex 0:10:56.559 --> 0:10:59.240 Yankee on the man and Luis Savarina was outstanding seven 0:10:59.280 --> 0:11:02.520 scoreless inning, only three hit, struck out ten. Mets beat 0:11:02.559 --> 0:11:04.840 the Cups five to two. Edmund Diaz came on to 0:11:04.840 --> 0:11:07.199 pitch the ninth in in the umpires as they always do, 0:11:07.640 --> 0:11:09.880 looked at his hand and the ump later said it 0:11:10.000 --> 0:11:14.320 was extremely sticky. Diaz got tossed. He may be looking 0:11:14.320 --> 0:11:17.160 at a ten game suspension. Red Sox won seven to four. 0:11:17.160 --> 0:11:19.640 In Cincinnati, they won seven of eight. Nashville's won two 0:11:19.679 --> 0:11:22.800 to one of Colorado. The Orioles got swept in Houston, 0:11:22.880 --> 0:11:26.120 the Giants got swept by the Cardinals, and Omaha Tennessee 0:11:26.240 --> 0:11:28.320 beat Texas A and M's the College World Series we 0:11:28.360 --> 0:11:31.040 decided tonight as will the Stanley Cup. 0:11:31.080 --> 0:11:32.600 Can Edmonton do something not. 0:11:32.640 --> 0:11:36.120 Done in eighty two years win the final series after 0:11:36.280 --> 0:11:37.679 losing the first three games. 0:11:37.720 --> 0:11:39.800 Here's the Oilers, Leon Dreisidel. 0:11:40.120 --> 0:11:42.360 It's been a hell of a story so far. But 0:11:43.240 --> 0:11:44.760 at the end of the day, we play to win, 0:11:45.000 --> 0:11:47.960 right and this is going to be the hardest game 0:11:48.000 --> 0:11:51.040 for us, and they're gonna come ot hard, They're gonna 0:11:51.080 --> 0:11:53.600 play at home. We have to bring our game again. 0:11:53.800 --> 0:11:55.040 It would be the Oilers first Cups. 0:11:55.040 --> 0:11:58.160 It's nineteen ninety, the first for any Canadian teams. It's 0:11:58.160 --> 0:12:01.120 Montreal in ninety three. Florida with an now fourth chance 0:12:01.200 --> 0:12:04.280 to win the Cup for the first time. Wnbah Shaba 0:12:04.360 --> 0:12:07.000 came from fifteen down beat Indiana by a point in 0:12:07.080 --> 0:12:10.959 the Battle of the Rookies. Gitlin Clark bested by Angel Reiche. 0:12:10.960 --> 0:12:13.040 She had twenty five points sixteen to be bounds. Tennis 0:12:13.040 --> 0:12:16.000 and England Tommy Paul won the Queen's Club Wimbledon tum up, 0:12:16.040 --> 0:12:18.480 he becomes the highest ranked American player. 0:12:18.800 --> 0:12:20.840 John stashe. We're Bloomberg Sports down. 0:12:20.679 --> 0:12:27.680 Dam Coast to coast on Bloomberg Radio, nationwide on Sirius XM, 0:12:27.800 --> 0:12:30.680 and around the world on Bloomberg dot Com and the 0:12:30.720 --> 0:12:31.920 Bloomberg Business app. 0:12:32.160 --> 0:12:35.840 This is Bloomberg Daybreak. Good morning of Nathan Hager. 0:12:35.920 --> 0:12:38.200 We are heading into the final trading week of the 0:12:38.240 --> 0:12:40.559 first half of twenty twenty four with some of the 0:12:40.640 --> 0:12:42.760 key catalysts stacked right at the end of it. Got 0:12:42.760 --> 0:12:45.560 a presidential debate Thursday night, the Fed's preferred gage of 0:12:45.559 --> 0:12:48.080 inflation on Friday, and that could inform the Central Bank's 0:12:48.160 --> 0:12:51.240 next policy decision near the start of the second half 0:12:51.360 --> 0:12:54.400 of twenty twenty four. Joining us for more, Bloomberg Radio 0:12:54.440 --> 0:12:57.600 and television anchor Kritty Gupta, Critty, good Morning. 0:12:57.720 --> 0:13:00.079 On top of all those catalysts, we have political risk. 0:13:00.080 --> 0:13:03.200 In Europe, the French election starting this weekend, the UK 0:13:03.360 --> 0:13:05.680 election the week after that. Is there a read through 0:13:05.880 --> 0:13:08.600 from Europe's political volatility to what we could see in 0:13:08.600 --> 0:13:09.439 the US market. 0:13:09.880 --> 0:13:12.520 There is absolutely a read through, And I think the 0:13:12.559 --> 0:13:14.240 mistake that a lot of folks make is a thing. 0:13:14.240 --> 0:13:16.400 It's on the other side of the Atlantic. We don't care. 0:13:16.800 --> 0:13:18.640 Let me explain to you why we do. There is 0:13:18.679 --> 0:13:22.080 a read through specifically into the treasury market, into the dollar, 0:13:22.960 --> 0:13:25.240 arguably into the stock market as well. Now, I think 0:13:25.280 --> 0:13:27.520 a lot of eyes this week, in particular from a 0:13:27.520 --> 0:13:30.520 political perspective, is going to be that highly anticipated debate 0:13:30.600 --> 0:13:33.800 from President Biden and former President Trump as well, talking 0:13:33.880 --> 0:13:37.560 about tariffs, talking about immigration, talking about things like how 0:13:37.640 --> 0:13:41.120 they may be tackling this looming deficit. The first thing 0:13:41.200 --> 0:13:43.800 on the new president's agenda will of course be the 0:13:43.880 --> 0:13:46.920 budget ceiling. It comes up January twenty twenty five. That 0:13:47.080 --> 0:13:49.600 being said, the read through from Europe is really important 0:13:49.640 --> 0:13:53.199 because it's coming off of not just political turmoil in France, 0:13:53.400 --> 0:13:55.559 simply this kind of rise of the far right, this 0:13:55.840 --> 0:13:57.720 rise of the far left as well. That's going to 0:13:57.760 --> 0:14:01.839 create a bigger deficit in France, but also creates a 0:14:01.880 --> 0:14:04.319 lot of pressure on the bond market in Europe as well. Now, 0:14:04.360 --> 0:14:07.920 the reason this matters to an American audience simply because 0:14:07.960 --> 0:14:10.480 when we've seen iterations of this in the past. Take 0:14:10.559 --> 0:14:13.160 a look at the twenty eleven twenty thirteen through twenty 0:14:13.200 --> 0:14:16.080 thirteen sovereign debt crisis, in Europe. Take a look at 0:14:16.320 --> 0:14:19.720 the mini budget coming out of Liz Trust as recently 0:14:19.760 --> 0:14:22.080 as a couple of years ago, you do start to 0:14:22.120 --> 0:14:24.640 see a read through into the US bond market. So 0:14:25.200 --> 0:14:28.280 read through that contagion effect is what we're expecting to see. 0:14:28.520 --> 0:14:32.040 You expect bond investors to position in some way around 0:14:32.080 --> 0:14:35.920 the presidential debate. Does that have the potential to be 0:14:35.960 --> 0:14:39.440 a market mover depending on the kinds of policy discussion 0:14:39.480 --> 0:14:40.880 that we see on Thursday night. 0:14:41.280 --> 0:14:44.480 You know, debates traditionally aren't tradable, and yet this morning 0:14:44.520 --> 0:14:46.120 you hear a lot of folks out of Europe saying, 0:14:46.120 --> 0:14:47.640 you know, I'm going to stay up and watch it. 0:14:47.640 --> 0:14:50.600 It's about two am London time. I'll certainly be staying 0:14:50.640 --> 0:14:52.920 up and watching it as well. It's important to keep 0:14:52.920 --> 0:14:55.000 in mind that the tear off policy is important not 0:14:55.080 --> 0:14:58.480 just because it's between the US and China, but between 0:14:58.800 --> 0:15:02.760 US and China. The creates ASML, for example, based out 0:15:02.800 --> 0:15:04.880 in the Netherlands, is stuck in the middle of the 0:15:04.920 --> 0:15:09.200 sanctions talk EU terrors being put on Chinese evs being 0:15:09.200 --> 0:15:12.160 accused of jumping on the market. That's really important as well. 0:15:12.400 --> 0:15:15.320 When that all factors into what kind of lead the 0:15:15.360 --> 0:15:18.200 next president, whether it's Biden or Trump. The takeaways that 0:15:18.200 --> 0:15:20.400 they're going to be tough on China. Just how tough 0:15:20.880 --> 0:15:22.160 is the real question. 0:15:22.240 --> 0:15:24.640 And that toughness on China plays into a lot of 0:15:24.640 --> 0:15:28.400 what we're seeing in the tech sector this rally around 0:15:28.680 --> 0:15:30.640 the AI play. But we did have a drop in 0:15:30.720 --> 0:15:32.760 tech shares at the end of last week and that 0:15:32.800 --> 0:15:35.640 could feel debate and think about whether this tech rally's 0:15:35.680 --> 0:15:36.600 topped out. 0:15:36.880 --> 0:15:40.400 It does, and it also feels the debate excues me 0:15:40.440 --> 0:15:43.040 of where the next AI leg is coming from. Remember, 0:15:43.040 --> 0:15:46.320 this is something that China is also really investing on 0:15:46.360 --> 0:15:48.920 when it comes to things like electrification as well applying 0:15:48.960 --> 0:15:51.800 AI their own trip technology as well, I believe over 0:15:51.800 --> 0:15:54.200 the weekends of headlines coming as well on Byteedance and 0:15:54.280 --> 0:15:58.080 Broadcom working with TSMC when it comes to creating their 0:15:58.080 --> 0:16:00.640 own trips. So there is really the story of what 0:16:00.840 --> 0:16:03.520 kind of China read through is on Taiwan as well, 0:16:03.520 --> 0:16:04.240 and that's all going to. 0:16:04.240 --> 0:16:05.000 Come up in the debate. 0:16:05.160 --> 0:16:08.200 This is Bloomberg Daybreak Today, your morning brief on the 0:16:08.240 --> 0:16:11.680 stories making news from Wall Street to Washington and beyond. 0:16:11.920 --> 0:16:14.720 Look for us on your podcast feed at six am. 0:16:14.760 --> 0:16:18.440 Eastern each morning on Apple, Spotify, and anywhere else you 0:16:18.520 --> 0:16:19.680 get your podcasts. 0:16:19.800 --> 0:16:22.480 You can also listen live each morning starting at five 0:16:22.560 --> 0:16:25.120 am Wall Street Time on Bloomberg eleven three to zero 0:16:25.200 --> 0:16:28.080 in New York, Bloomberg ninety nine to one in Washington, 0:16:28.120 --> 0:16:31.000 Bloomberg one oh six to one in Boston, and Bloomberg 0:16:31.080 --> 0:16:32.760 ninety sixty in San Francisco. 0:16:33.160 --> 0:16:36.280 Our flagship New York station is also available on your 0:16:36.360 --> 0:16:41.800 Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus. 0:16:41.800 --> 0:16:45.240 Listen coast to coast on the Bloomberg Business app, SERRIUSXM, 0:16:45.360 --> 0:16:48.960 the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan 0:16:48.960 --> 0:16:50.560 Hager and I'm Karen Moscow. 0:16:50.760 --> 0:16:53.520 Join us again tomorrow morning for all the news you 0:16:53.640 --> 0:17:05.960 need to start your day right here on Bloomberg Daybreak