US Stocks Rally at The Open, Hassett on Fed, More

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Bloomberg News Now 8 min 8 speakers 4 chapters transcribed 1 month ago
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What is the main topic discussed in this episode?

Jennifer Zabasaja 0:00
A new chapter in global growth is being written and much of it is happening in Africa.
Jordan Morris 0:05
Africans need to invest. There are deals to be done and business to be won.
Jennifer Zabasaja 0:09
I'm Jennifer Zabasaja. Every week on the Next Africa podcast, we track capital flows and political shifts shaping the continent's future.
Alex Rodriguez 0:17
The digitalization of Africa is going to power its growth. Creating the world of something like HIV is possible. Population growth is so enormous in Africa.
Jennifer Zabasaja 0:25
Listen to Next Africa on Apple, Spotify or wherever you get your podcasts.
Karen Moskow 0:30
News when you want it with Bloomberg News Now. I'm Karen Moscow, and Wall Street is staging a comeback as dip buyers emerge, lifting stocks as chipmakers rebound, while data signals the economy remains in good shape but is not overheating. The S&P 500 up nine-tenths of a percent, the Dow Jones Industrial Average up half percent, and the Nasdaq, it is jumping 1.7%. Microsoft is jumping as well. It is up almost 15% as its cloud unit grew at the fastest clip in four years. Those gains overshadow a slide in meta platforms. Those shares are down more than 9.5% and that's following a disappointing quarterly revenue forecast. We get more on those earnings and its chief executive Mark Zuckerberg with Bloomberg's Dan Curtis.
Dan Curtis 1:20
Now Zuckerberg is looking towards a future where AI agents carry out tasks 24-7 for customers. The build is expensive and the revenue isn't supporting the company yet. He's also been exploring a new cloud business to run out compute. He said, quote, there isn't just nowhere near enough compute for all of the demand. That said, it looks like meta doesn't need all that demand. So that could also be a little bit of pressure for investors saying, well, if there's demand for compute, why aren't you using it and why are you renting it out?
Karen Moskow 1:46
And that's Bloomberg's Dan Curtis. Bristol-Myers Squibb, it is up four-tenths of a percent. It boosted its sales and profit outlook for the year after second quarter demand for most of the drugmaker's portfolio beat Wall Street expectations. Equities held gains after data showed a pickup in consumer spending and solid business investment, even as the U.S. economy grew at a weaker-than-expected 1.5 percent pace in the second quarter. This is after the Federal Reserve, led by Chair Kevin Warsh, decided to keep interest rates on hold following their two-day meeting in Washington. Kevin Hassett, White House National Economic Council director, told Bloomberg Television he still has confidence in Kevin Warsh.
Kevin Hassett 2:26
There were three dissensions or three dissents, but that happened to Jay Powell in the past as well. The dissents all came from regional Fed presidents, not from the actual governors. And so it sounds like he's got his house in Washington in order. And we'll look forward to seeing how it's going forward.

How are US stocks performing at the open and which sectors are leading gains?

Kevin Hassett 2:42
But I think his job just got a little bit easier if you looked at the PCE data that just came out, which was actually a top line of negative, which is very unusual. Core dropped a lot. And so I think the inflation numbers have continued to head in the direction that we saw with the previous CPI number, which is an objective of the Fed, is to get those numbers down.
Karen Moskow 3:01
And that's White House National Economic Council Director Kevin Hassett. The Bank of England kept interest rates steady at 3.75 percent as U.K. officials sought to balance the threat from resurgent U.S. Iran tensions against signs that domestic price pressures are easing more quickly than predicted. The Monetary Policy Committee voted 6-3 in favor of leaving rates unchanged. The U.S. launched a fresh wave of strikes on Iran in response to an attack on American forces in Jordan, escalating a conflict that's now spreading across the Middle East. Washington hit dozens of military targets in an operation early today aimed at degrading Tehran's ability to threaten U.S. troops, its Arab allies, and commercial shipping in the region.
Karen Moskow 3:42
That from U.S. Central Command. Iran targeted a building in northern Kuwait, while Jordan said it intercepted five missiles from the Islamic Republic.

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