♪ >> welcome to bloomberg markets. we have record highs here for the s&p 500. it's a continuation of the steady melt up that we've seen over the past two weeks. the s&p gaining about one quarter of 1% right now. getting a pause in the u.s. treasury, rallying somewhat higher yields although they've come in a little bit. there is a slower economic data and fed speak -- fed speak this week.

and the euro under pressure losing a tens of 1% against the dollar as the french government edges closer to collapse, possibly as early as this weekend. you can see the benchmark stock index finishing the day with little changed. thanks among the biggest losers as investors demand to own increases over german bonds. we are going to have more on the developing story shortly. but first, let's highlight some equity movers in the u.s. and checking in with abigail doolittle. abigail: one mid-day mover that is skyhigh, take a look at the shares of super micro computer after an independent review found no signs of misconduct relative to accounting. the professionals conducting that review are recommending however that the top financial and legal folks step down, the cfo has stepped down. it is amazing that since this company brought on a new auditor

and then started working with the nasdaq around filing be delayed 10k, the stock up more than 120%. turning to the shares of intel, these shares are also higher, up about 4%, the better part of 4% as the ceo is stepping down. two longtime employees are filling the shoes of pat gelsinger and the board is looking for a new ceo. the failed turnaround apparently and according to bloomberg exclusive, the board just became frustrated, disappointed. they want somebody new, stock down about 50% on the year. that turnaround clearly not happening. and finally ran to get out of the downside. down 6.6%. this as their ceo is leading unexpectedly and early. these also down sharply on the year. lots of space including pressure on sales sliding in the u.s., inventory issues in europe. this stock really reflecting a

lot about uncertainty. scarlet: absolutely, and that is a pretty dramatic decline. thank you so much. i mention anticipation had a big economic reports as well as fed speak. mike mckee who is our editor is here now with some comments from rafael bostick. kind of the first of t speak of the week. >> he's first out-of-the-box for a very busy week of fed officials, basically saying that inflation is on a path, i'll be a bumpy, to the 2% target. they just need to keep going in that direction. the fed is tight at this point and they do need to adjust policy downward, but the path and how fast that happens isn't clear at this point because there are a couple of things on both sides. howhe had some interesting

examples. that suggests we are losing some steam in the labor markets, but also the number of jobs openings that were reported in those reports earlier in the year that were so large trying to parse te noise, how has this affected the pricing of what markets think the fed will do in december and in 2025? >> markets are basically back off the idea that there is a certain path. the market in preston before the last meeting 100% chance of a

rate cut in december. that has gone away and add to about 65% and of course that will get bounced around by the jobs report in cpi next week. it's really 2025 that the markets are very curious about. how long will they be valid? we asked today whether he's incorporating the trump economic promises into the forecast. wait until early to do that because they haven't been fleshed out. >> that really echoes what jay powell had said. when everyone to throwing him questions, hypothetical questions about the incoming administration, you said that this kicks off a big week of fed speak. we know jay powell will be speaking on wednesday. around his comments on wednesday what else could we anticipate? >> you've got a couple of other fed officials talking about these things, including two speeches today.

chris waller is talking minutes today about the fed and its framework review that began, and there's a lot of questions about that that are not immediately impactful in terms of fed rate cuts, but how the fed will look at data going through the next years. so there's a lot of things to keep an eye on, but jay powell of course being the premier event of the week for fed speak. >> and it will be in moderated discussion so he's going to be answering questions. >> he may have some text remarks but i suspect if he's going to say anything, it will be in the q&a. >> michael mckee, thanks so much. let's turn back to france for the far right national party of -- national rally party of marine le pen will back a motion to topple the french government after the prime minister failed to agree to all of its demands. bloomberg caught up with the finance minister yesterday and

here is what he had to say about the situation at that time. >> the french government is looking at the french parliamentary debate, it is respecting each and every parliamentary debate that leads to an evolution. it will take into account what is changing, but we won't be blackmailed. >> this is a developing story of course and we've been keeping up-to-date on the latest movements here. on the ground in paris is alan katz. there is been a new develop and once again with the french per mere has offered some kind of final budget concession. where do things stand right now? >> that's already a few hours old at this point, and that is gone by the wayside. but we had at the government came in this afternoon and used a constitutional procedure called article 49 where you

adopt a bill without a vote. the government is taking its responsibility, the bill becomes law and parliament doesn't vote on that. it opens up the government to a new confidence vote. the government has adopted a budget bill for part of the budget, not whole thing. and a coalition of left -- have either filed or going to file the confidence motions against this government. the way it works is that there has to be at least 48 hours in the time you filed that motion and when it can be voted on. between now and wednesday, we are sort of in a holding pattern and from that point on, there can be an actual no-confidence motion in the french parliament that could then throw out the government. >> you mentioned michel barnier's government but he may

go down as one of the shortest serving pm's in france. what about emmanuel macron? isn't he kind of the one calling the shots? >> normally yes. but emmanuel macron dissolved parliament back in june and we had elections. the parliament that was elected at the time was really split between three camps, left, center, and far-right. and as a result, his party and allies no longer had even a relative majority, they became relatively small and parliament. and that suddenly switch the french system from basically a presidential system to basically a parliamentary system. that means he is still in office, no one can force him out, sort of think of him like a u.s. president. but parliament suddenly where you have to pass bills like the house and the senate became controlled, wasn't really controlled by anybody.

the person he ended up naming just a few months ago isn't from his party. he agrees on lots of things but disagrees on others and even he had no sort majority within parliament. so what we are coming to is that to even path the most basic of legislation, what we would call must pass bills the united states, the budget, he is unable to get a group of legislators large enough to be able to pass that budget and even if he uses his constitutional measure to pass without a vote, he's opened himself up to a no-confidence motion that he is very likely to lose because the left-wing coalition plus this far-right part of the national rally are going to come together. they said they are going to vote against them for this which means they are extremely likely to have an absolute majority, at least 289 votes in parliament and they really will push them out of office. so emmanuel macron has very little authority in all of this. his position remains but he can't really affect how this plays out over the next few days. after that he can, but we will

come to that in a second. >> i think that does it for us in terms of setting up the scene here. appreciate you staying for us. for more on what the latest developments could mean for markets, for investors, i want to bring in andrew cunningham. andrew comes to us from london. andrew, all of this is quibbling or arguing over the french budget. at the end of the day, will france be able to reduce its budget deficit or are the far-right and the far left teaming up to squeeze michel barnier and his leadership to the point where we are just going to have a standstill and a government shutdown? >> i think as your colleague explained very well, this looks like there's going to be a new election, but it won't happen until the middle of next year. in the meantime assuming the government is voted out, there might be some sort of technical

government in place which emmanuel macron will be able to a point. that government may then try to force through a kind or fiscal adjustment which michel barnier has been trying to do. but it would be a temporary arrangement and then we would have new elections. and the problem is that would probably produce a very similar parliament which would be split between these three different groups. it seems there's not likely to be any clear mandate for any particular group to push through the reforms that are needed. that is the part the markets are concerned about. >> and that concern is reflected in the euro losing 9/10 of 1% against the dollar, down about 1% against began and french -- against the yen, and french stocks teetering. and also what people are calling the spread, the gap between french and german 10 year bond yields. what does this signal specifically, what concern are investors expressing? >> ultimately requested -- the

question is about how credit-were the france's. there was some differentiation now which is quite a healthy thing because some governments are a better position than others. france has been losing ground to other countries in southern europe, so spain and portugal have been doing much better than france in terms of their growth rates and their fiscal policy, so the spreads for those countries are now lower than they are, then france is. greece was almost the same as france the other day. the trend is things getting worse in france and is very difficult to see that turning around. i think investors will continue to shift toward countries like spain, portugal, greece which used to be the problem, as they are now seen as being somewhat better credits than france. >> that begs the question, and i

know there is going to be hyperbole here, but is france the new greece? could it end up in a situation similar to greece where those bond yields really get blown out? >> it is an interesting comparison and quite a natural one from a political perspective, but the fact that the script -- spreads are the same as telling you more about how much greece has improved. frankly it was insolvent, there is not just a question over credit worthiness. we are a very long way from that. it's also interesting that the peripheral countries, there's not even than any sort of significant contagion to them. there yields have not risen despite problems of france and to some extent that is probably testament to what the ecb has done over the last decade, creating a number of tools which would allow it to step in if things get too hairy. >> i'm glad you bring up the ecb

because they have their next policy meeting in about 10 days. they've already cut interest rates twice. how much does the ecb address this or even care about this? >> they've cut interest rates three times now. it looks pretty certain they will cut by another 25 basis points on the 12th of december. they will be wanting this very closely. the governor of the bank of france who sits on the council of the ecb has been sounding very dovish recently, really keeping an eye out for his own country situation. but the ecb mandate to look at the entirety of the euro zone and to hit the inflation target. as long as there isn't a much bigger widening of spreads or loss of contagion to the south, i think they will be able to continue with their monetary policy based on concerns about inflation, the normal monetary

policy issues which in my view means that they will move pre-swiftly to bring interest rates down next year because the euro zone as a whole is struggling. >> i'm glad you corrected me on the interest rate cuts, i kind of forgot about the one that took place early june because it predated the u.s. cycle. very quickly here, you mentioned about ecb intervention, there is something called a bond purchase program. how likely is it that the ecb may tap that? >> probably some of them would quite like to have a chance to use it, but it is certainly not able to use for france. it is intended to be used for downturns of contagion which is unwarranted. that is where they could come in and help those countries if it is being caused by something in france. france's problems are self-inflicted. >> so they are worried about contagion and less about a

specific mechanism within france. really appreciate your time, thank you so much. coming up, we are going to turn back to the u. be joined for a r look at u.s. retail spending this holiday season. this is bloomberg. ♪

♪ scarlet: this is bloomberg markets. time now for the stock of the hour and we will look at gap. shares are getting a lift after jp morgan updated the gap to overweight from neutral following a meeting with the gap ceo and cfo. and of course it is a crucial

few weeks for retailers for the holiday season underway in the u.s. keyword being a few because of the late arrival thanksgiving this year. for more on the state of u.s. retail i want to welcome katie thomas. katie is the lead of the carney consumer institute. good to speak with you. what do the early numbers show about black friday spending and how that sets us up for today, which is cyber monday? >> this year is actually off to a strong start. mastercard came out with a report that said black friday sales were up 3.4% over last year, and that is right on the top end of the overall holiday spending target estimating a 2.5 to 3.5% growth against last year. some of what they shared was actually online was already up and in-store sales were a little bit softer, but what we are really hearing from consumers is it is not just gifts which they do love shopping for, it is also have a been waiting to get good

deals on items that are personal for their own personal use and they really want to make sure they get their own bang for their buck but it overall since the holiday season for success. scarlet: our floor director was just telling me he was buying a pair of jeans from duluth trading company and it was a present -- it wasn't a present, just a gift to himself. so we talk about how this is cyber monday just like how we talk about there was a black friday but we know that these deals have been really promoted for the days and weeks leading up to black friday. what is actually on offer on a day like today or this week compared with years past? >> like you said, black friday really dates back to when there were doorbusters and black friday was in-store and cyber monday actually was four we were all on the internet and shopping online. people would go back to work and actually have faster internet connection then shop online. it certainly does all blur together now but with cyber monday specifically what you

tend to see is that final push that may include some extra discounts particularly with apparel organizations. they really like to throw that extra 15% or extra off sale whereas electronics, those do tend to really start to be on sale around thanksgiving, black friday, and that holds pretty steady. you are just looking for that final great deal today and that is why throughout the rest of the month it will be kind of civic categories or segment deals of the day. scarlet: so for anyone who procrastinated and didn't get in on the black friday or cyber monday or cyber we deals and are still waiting for some price point to get it on, are they kind event the mercy of retailers who might be exercising more dynamic pricing? i really need to move this so i am going to mark this down but none of it is set in stone. >> absolutely. a little bit depends on how strict you are with your list.

do i want exactly the brand, exactly the item i had in mind, or am i a little bit flexible in terms of what headphones i am buying? if you are looking at some of the popular items, every year uggs tend to have a popular item. the big colors and big sizes are probably already sold out so it really depends how strict you want to be. there will definitely still be deals but it will be a little more variable. are not necessarily going to see the whole store on a deal. you are going to see fast shipping deals come into play and it will be more variable. scarlet: that means a lot of scouring on the internet. always appreciate you joining us. katie thomas. from new york, this is bloomberg. ♪

♪ scarlet: i'm scarlet fu, let's check out markets and where things stand right now before we

close out the hour. a record high of the s&p 500 and if it closes at these levels this would mark the 54th closing record this year. the nasdaq 100 actually doing better with tesla and apple climbing to new highs. the euro weaker vs. the dollar, down 9/10 of 1%. this is bloomberg. get your business out there and get more customers in here. no sweat... for you anyway. create a beautiful website in minutes with godaddy. it's our son, he is always up in our business. create a beautiful website in minutes it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people.

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the world of business, this is "balance of power." live from washington, d.c. joe: joe: joe biden reverses course. president offers a full and unconditional pardon to his son, hunter, after repeatedly pledging not to do so. reaction from both sides of the aisle. we will have the latest from wendy benjaminson, insights from nick ackerman, former prosecutor, and our political panel, with us for the hour. we turn to amy morris for an update on the markets. amy: it's a rally now on the world -- on the largest tech companies driving stocks to all-time highs. we bring y