1
00:00:03,080 --> 00:00:06,360
Speaker 1: From the Bloomberg Interactive Burgers Studios. This is Bloomberg day

2
00:00:06,360 --> 00:00:08,119
Speaker 1: Break for Wednesday, May tenth.

3
00:00:08,240 --> 00:00:11,840
Speaker 2: Coming up today, Debt ceiling talks continue after the first

4
00:00:11,880 --> 00:00:14,520
Speaker 2: meeting between President Biden and Speaker McCarthy.

5
00:00:14,880 --> 00:00:18,079
Speaker 1: Congressman George Santos has indicted on federal charges.

6
00:00:18,400 --> 00:00:22,799
Speaker 2: Former President Trump is found liable for sexually assaulting Egene Carol.

7
00:00:22,880 --> 00:00:25,360
Speaker 1: And Wall Street awaits the latest reading on inflation.

8
00:00:25,640 --> 00:00:28,280
Speaker 3: Governor Heppel says New York State is preparing for an

9
00:00:28,280 --> 00:00:31,360
Speaker 3: influx of asylum seekers. Plus we're learning more about the

10
00:00:31,360 --> 00:00:34,000
Speaker 3: gunman who killed eight people on the Texas mall. I'm

11
00:00:34,000 --> 00:00:35,920
Speaker 3: Michael Barr. More ahead, I'm.

12
00:00:35,800 --> 00:00:38,720
Speaker 4: John Stave Sharon Sports. The Yankees won, the Mets lost,

13
00:00:38,720 --> 00:00:42,040
Speaker 4: The Devil's lost Game four, The Knick seb Game five tonight.

14
00:00:43,680 --> 00:00:47,120
Speaker 5: That's all straight Ahead on Bloomberg day Break, The business

15
00:00:47,159 --> 00:00:49,599
Speaker 5: news you need to starn your day in just one

16
00:00:49,720 --> 00:00:54,200
Speaker 5: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

17
00:00:54,240 --> 00:00:56,920
Speaker 5: Business app, and everywhere you get your podcasts.

18
00:01:00,000 --> 00:01:01,680
Speaker 6: Good morning, I'm Nathan Hager.

19
00:01:01,600 --> 00:01:04,840
Speaker 1: And I'm Karen Moscow. Here are the stories we're following today.

20
00:01:05,440 --> 00:01:08,320
Speaker 2: We have a slew of political news this morning. Not

21
00:01:08,560 --> 00:01:11,840
Speaker 2: much progress came from yesterday's debt ceiling meeting at the

22
00:01:11,840 --> 00:01:14,880
Speaker 2: White House, as the US inches closer to a first

23
00:01:14,920 --> 00:01:18,520
Speaker 2: ever default. Amy Morris has details from our Bloomberg ninety

24
00:01:18,600 --> 00:01:21,520
Speaker 2: nine to one newsroom in Washington. They will have another

25
00:01:21,560 --> 00:01:24,720
Speaker 2: meeting on Friday. House Speaker Kevin McCarthy.

26
00:01:24,280 --> 00:01:27,600
Speaker 4: I didn't find progress. Staff will continue to.

27
00:01:27,600 --> 00:01:30,520
Speaker 7: Meet, but President Biden called it a productive meeting and

28
00:01:30,600 --> 00:01:32,560
Speaker 7: says default is not an option.

29
00:01:32,800 --> 00:01:36,679
Speaker 8: Our economy would fall into a significant recession. It would

30
00:01:36,720 --> 00:01:42,240
Speaker 8: devastate retirement accounts, increase borrowing costs. According to Moodies, nearly

31
00:01:42,319 --> 00:01:45,360
Speaker 8: eight million Americans would lose their job.

32
00:01:45,520 --> 00:01:49,440
Speaker 7: For now, the intensified negotiations can at least temporarily assuage

33
00:01:49,480 --> 00:01:53,160
Speaker 7: markets before June first, that's when Treasury Secretary Janet Yellen

34
00:01:53,200 --> 00:01:57,280
Speaker 7: has warned the nation risks default in Washington. I'm Amy Morris,

35
00:01:57,280 --> 00:01:58,200
Speaker 7: Bloomberg Daybreak.

36
00:01:58,280 --> 00:01:59,160
Speaker 1: All right, Amy, thanks.

37
00:01:59,200 --> 00:01:59,320
Speaker 9: Well.

38
00:01:59,360 --> 00:02:02,040
Speaker 1: Even if KNG Vris and President Biden reach a debt

39
00:02:02,120 --> 00:02:05,880
Speaker 1: ceiling deal, the process could threaten economic growth, especially if

40
00:02:05,880 --> 00:02:09,480
Speaker 1: it involves cutting infrastructure spending. That's a view from Morgan

41
00:02:09,600 --> 00:02:12,600
Speaker 1: Stanley Wealth Management Chief investment Officer Lisa Shalott.

42
00:02:12,880 --> 00:02:18,240
Speaker 10: It matters, you know, to forward looking expectations of growth

43
00:02:19,080 --> 00:02:23,200
Speaker 10: in terms of what is cut, those things have been

44
00:02:23,200 --> 00:02:26,639
Speaker 10: a support to growth and if we need to take

45
00:02:26,680 --> 00:02:29,919
Speaker 10: that out of the forward forecasts, that is going to

46
00:02:30,040 --> 00:02:32,120
Speaker 10: dampen economic growth.

47
00:02:32,320 --> 00:02:35,600
Speaker 1: Morgan Stanley's Lisa Shallett is watching for what Treasury Secretary

48
00:02:35,720 --> 00:02:39,519
Speaker 1: Janet Yellen will do after she gets approval to extend borrowing.

49
00:02:39,280 --> 00:02:41,800
Speaker 2: Well outside of the debt ceiling, Karen, The political headlines

50
00:02:41,800 --> 00:02:45,280
Speaker 2: are hitting George Santos this morning. The congressman from New

51
00:02:45,360 --> 00:02:49,720
Speaker 2: York will now face criminal charges stemming from campaign finance laws.

52
00:02:49,960 --> 00:02:51,960
Speaker 2: Bloomberg's Ed Baxter has the story.

53
00:02:52,400 --> 00:02:55,320
Speaker 11: Santos, who took office despite fabricating much of what he

54
00:02:55,400 --> 00:02:58,240
Speaker 11: claimed about his education and career, has been indicted on

55
00:02:58,280 --> 00:03:02,200
Speaker 11: federal charges. Bloomberg sources say charges could be unsealed as

56
00:03:02,280 --> 00:03:05,520
Speaker 11: early as today, and that he could be prosecuted on

57
00:03:05,600 --> 00:03:09,000
Speaker 11: Long Island. Santos reported he loaned his campaign over seven

58
00:03:09,040 --> 00:03:11,839
Speaker 11: hundred thousand dollars and claimed to be worth between two

59
00:03:11,840 --> 00:03:15,480
Speaker 11: point six and eleven point two million dollars. House Speaker

60
00:03:15,560 --> 00:03:18,440
Speaker 11: Kevin McCarthy says if Santos is convicted, he would have

61
00:03:18,480 --> 00:03:23,120
Speaker 11: to leave Congress in San Francisco. I'm at Baxter Bloomberg Daybreak.

62
00:03:22,720 --> 00:03:25,320
Speaker 1: All right, and thanks well. Donald Trump is also on

63
00:03:25,400 --> 00:03:28,119
Speaker 1: the front pages this morning, and new York jury found

64
00:03:28,160 --> 00:03:31,800
Speaker 1: the former president liable for sexually assaulting a woman and

65
00:03:31,800 --> 00:03:35,040
Speaker 1: then defaming her. We get the details from Bloomberg's John

66
00:03:35,080 --> 00:03:37,080
Speaker 1: Tucker in New York, John Karen.

67
00:03:37,120 --> 00:03:39,800
Speaker 12: The jury returned its verdict sam to just three hours

68
00:03:39,800 --> 00:03:43,840
Speaker 12: of deliberations. Trump's claims he could not have assaulted Egene

69
00:03:43,840 --> 00:03:46,720
Speaker 12: Carroll because she was not his type was at the

70
00:03:46,720 --> 00:03:49,440
Speaker 12: center of the case. Carol's attorneys managed to use those

71
00:03:49,520 --> 00:03:52,720
Speaker 12: words against him. I showed video from his deposition where

72
00:03:52,760 --> 00:03:56,119
Speaker 12: he confused Carol for ex wife Marla Maples when shown

73
00:03:56,160 --> 00:03:59,880
Speaker 12: a photover Trump released a series of videos on social

74
00:04:00,080 --> 00:04:02,680
Speaker 12: media last night with his response.

75
00:04:02,360 --> 00:04:04,360
Speaker 11: I don't even know who this woman is.

76
00:04:04,880 --> 00:04:09,640
Speaker 7: I have no idea who she is, where she came from.

77
00:04:09,720 --> 00:04:12,200
Speaker 12: In a statement, Carol said this victory is not just

78
00:04:12,240 --> 00:04:14,880
Speaker 12: for me, but for every woman who suffered because she

79
00:04:14,960 --> 00:04:17,760
Speaker 12: was not believed. The jury stopped short of finding Trump

80
00:04:17,839 --> 00:04:20,880
Speaker 12: liable for rape. He must pay her five million dollars

81
00:04:20,880 --> 00:04:24,080
Speaker 12: in damages, three million of it for defamation. Trump will

82
00:04:24,120 --> 00:04:27,600
Speaker 12: appeal the verdict in New York. I'm John Tucker Bloomberg Daybreak.

83
00:04:27,640 --> 00:04:30,000
Speaker 2: Well, Johnny, remains to be seen what impact Trump's legal

84
00:04:30,040 --> 00:04:32,640
Speaker 2: problems have on his presidential bid, but we're getting where

85
00:04:32,680 --> 00:04:36,400
Speaker 2: to Wall Street. Titan has met with another presumed Republican candidate.

86
00:04:36,480 --> 00:04:40,840
Speaker 2: Billionaire Steve Schwartzman recently visited Ron DeSantis, but we're told

87
00:04:40,960 --> 00:04:44,279
Speaker 2: the meeting left Schwartzman unconvinced of the Florida governor's White

88
00:04:44,320 --> 00:04:47,320
Speaker 2: House prospects. Bloomberg News has learned for now, the Blackstone

89
00:04:47,320 --> 00:04:49,880
Speaker 2: co founder will hold off donating money to DeSantis. He

90
00:04:49,960 --> 00:04:52,600
Speaker 2: is currently not supporting anyone in the Republican field.

91
00:04:53,120 --> 00:04:56,800
Speaker 1: Meantime, Nathan, the White House remains focused on immigration concerns.

92
00:04:56,880 --> 00:05:00,040
Speaker 1: President Biden is warning of tumultuous conditions at the the

93
00:05:00,160 --> 00:05:04,320
Speaker 1: US Mexico border when pandemic era restrictions are lifted tomorrow.

94
00:05:04,760 --> 00:05:08,840
Speaker 8: We also are in the process of setting up resident

95
00:05:10,040 --> 00:05:13,320
Speaker 8: offices in Columbia and other places where you can or

96
00:05:13,600 --> 00:05:16,920
Speaker 8: someone seeking to Solenton go first. So but it remains

97
00:05:16,920 --> 00:05:19,000
Speaker 8: to me seen it's going to be chaotic for a while.

98
00:05:19,320 --> 00:05:21,480
Speaker 1: And President Biden said he spent close to an hour

99
00:05:21,600 --> 00:05:25,080
Speaker 1: speaking with Mexican President Andreas Manuel Lopez Obrador about the

100
00:05:25,120 --> 00:05:26,080
Speaker 1: situation here.

101
00:05:26,160 --> 00:05:28,520
Speaker 2: There are signs tensions between the US and China are

102
00:05:28,560 --> 00:05:31,799
Speaker 2: starting to soften. Sources tell US US trade representative Catherine

103
00:05:31,800 --> 00:05:34,680
Speaker 2: Tie plans to meet China's commerce minister in Detroit later

104
00:05:34,720 --> 00:05:36,839
Speaker 2: this month. This will be the most senior in person

105
00:05:36,920 --> 00:05:39,480
Speaker 2: encounter between the nations since the US shotdown at alleged

106
00:05:39,520 --> 00:05:41,360
Speaker 2: Chinese spy balloon in early February.

107
00:05:41,839 --> 00:05:43,760
Speaker 1: And finally, Nathan, we're looking at a big day on

108
00:05:43,800 --> 00:05:46,880
Speaker 1: the economic front. While Street awaits the latest reading on inflation,

109
00:05:47,040 --> 00:05:50,080
Speaker 1: CPI data for April is expected to show high prices

110
00:05:50,120 --> 00:05:52,480
Speaker 1: remain a concern for the Fed. We get a preview

111
00:05:52,520 --> 00:05:54,040
Speaker 1: from Bloomberg's Michael McKee.

112
00:05:54,279 --> 00:05:57,000
Speaker 13: Higher interest rates have helped cut inflation in half over

113
00:05:57,040 --> 00:05:59,440
Speaker 13: the past nine months. Now, he kind of has say

114
00:05:59,520 --> 00:06:02,359
Speaker 13: for the hard rents and rising wages for hard to

115
00:06:02,360 --> 00:06:06,440
Speaker 13: find employees, particularly in the service sector, will break progress

116
00:06:06,480 --> 00:06:09,520
Speaker 13: towards the Fed's goal of an average two percent inflation rate.

117
00:06:09,680 --> 00:06:13,360
Speaker 13: The central bankers think progress will continue if slowly. They

118
00:06:13,400 --> 00:06:15,960
Speaker 13: will leave rates high to ensure that happens, and not

119
00:06:16,040 --> 00:06:19,240
Speaker 13: worry too much about month to month inflation data unless

120
00:06:19,279 --> 00:06:23,400
Speaker 13: it unexpectedly jumps. The question is what will investors think,

121
00:06:23,800 --> 00:06:26,520
Speaker 13: will they have the patients of Fed officials, or will

122
00:06:26,560 --> 00:06:29,440
Speaker 13: we see a big rate reaction to the inflation data.

123
00:06:29,640 --> 00:06:31,680
Speaker 13: Michael McKee Bloomberg Daybreak.

124
00:06:34,680 --> 00:06:35,880
Speaker 2: Time now to take a look at some of the

125
00:06:35,880 --> 00:06:38,080
Speaker 2: other stories making news in New York and around the world.

126
00:06:38,120 --> 00:06:40,920
Speaker 2: For that, we are joined by Bloomberg's Michael Barr. Good Morning, Michael,

127
00:06:40,960 --> 00:06:43,560
Speaker 2: Good morning, Nathan. New York is bracing for a surge

128
00:06:43,680 --> 00:06:48,360
Speaker 2: migrants after Title forty two expires tomorrow. For months, migrant

129
00:06:48,360 --> 00:06:50,960
Speaker 2: workers crossing the southern border have been bussed up from

130
00:06:51,000 --> 00:06:53,839
Speaker 2: Texas the states like New York to be sheltered while

131
00:06:53,880 --> 00:06:58,720
Speaker 2: asylum seekers claims are processed. The majority have been sent

132
00:06:58,760 --> 00:07:01,839
Speaker 2: to New York City, but now Mayor Eric Adams plans

133
00:07:01,839 --> 00:07:04,679
Speaker 2: to send migrants to other counties in the state after

134
00:07:04,680 --> 00:07:07,960
Speaker 2: they arrive in the city. Governor Kathy Oakle says there

135
00:07:08,000 --> 00:07:10,320
Speaker 2: are counties that need workers desperately.

136
00:07:10,680 --> 00:07:11,600
Speaker 9: There's a lot of people.

137
00:07:11,680 --> 00:07:14,360
Speaker 10: We have five thousand openings for farm workers.

138
00:07:14,800 --> 00:07:16,160
Speaker 14: The farmers are asking us to.

139
00:07:16,080 --> 00:07:17,120
Speaker 9: Try and make this happen.

140
00:07:17,240 --> 00:07:21,040
Speaker 10: So it's a multi faceted challenge, but my team has

141
00:07:21,040 --> 00:07:22,000
Speaker 10: been heavily engaged.

142
00:07:22,640 --> 00:07:25,960
Speaker 3: Governor Ockle says she signed an executive order to call

143
00:07:26,040 --> 00:07:28,920
Speaker 3: up the National Guard. The White House is reacting to

144
00:07:29,000 --> 00:07:31,680
Speaker 3: last week's death of a homeless New York subway writer.

145
00:07:32,240 --> 00:07:35,840
Speaker 3: According to a statement, Jordan Neely's killing was tragic and

146
00:07:35,880 --> 00:07:39,360
Speaker 3: deeply disturbing. Our hearts go out to the family and

147
00:07:39,520 --> 00:07:42,440
Speaker 3: loved ones. We firmly believe that the events surrounding his

148
00:07:42,560 --> 00:07:46,600
Speaker 3: death demand a thorough investigation. A grand jury may convene

149
00:07:46,600 --> 00:07:50,280
Speaker 3: this week's way possible charges against Daniel Penny, the marine

150
00:07:50,360 --> 00:07:53,679
Speaker 3: veteran who police say put Neely in a chokehold after

151
00:07:53,720 --> 00:07:57,760
Speaker 3: a disturbance on the subway. Manhattan. DA Alvin Bragg is

152
00:07:57,800 --> 00:08:00,400
Speaker 3: also saying something about the case for the first time.

153
00:08:00,800 --> 00:08:04,480
Speaker 3: Prank says just because his office hasn't said anything doesn't

154
00:08:04,560 --> 00:08:08,480
Speaker 3: mean that they aren't taking it seriously. Authorities say the

155
00:08:08,520 --> 00:08:11,160
Speaker 3: gunman who killed eight people and in Allen, Texas mall,

156
00:08:11,560 --> 00:08:15,240
Speaker 3: legally obtained the weapons despite the acute shooter's troubled background.

157
00:08:15,760 --> 00:08:19,040
Speaker 3: Images uploaded to an account last month indicate the gunman

158
00:08:19,120 --> 00:08:22,360
Speaker 3: may have visited the outlet mall multiple times the past year,

159
00:08:22,840 --> 00:08:27,360
Speaker 3: researching peak hours. State Department of Public Safety official Hank Sibley,

160
00:08:27,800 --> 00:08:29,040
Speaker 3: we do know that.

161
00:08:29,040 --> 00:08:33,480
Speaker 1: He had Neo Nazi idiation, he had patches, he had tattoos,

162
00:08:34,640 --> 00:08:37,320
Speaker 1: even his signature, you know, verified.

163
00:08:36,920 --> 00:08:40,920
Speaker 3: That Sibley says the suspected gunman had eight weapons on him.

164
00:08:41,480 --> 00:08:46,200
Speaker 3: Buddy Holly is top dog at Westminster. The petitpassant graffon

165
00:08:46,440 --> 00:08:49,040
Speaker 3: ven Den beat out more than twenty five hundred of

166
00:08:49,080 --> 00:08:52,200
Speaker 3: the canines to take best in Show at America's premier

167
00:08:52,280 --> 00:08:54,960
Speaker 3: dog show and a first for the Breed Global News

168
00:08:54,960 --> 00:08:57,280
Speaker 3: twenty four hours a day, powered by more than twenty

169
00:08:57,320 --> 00:09:00,000
Speaker 3: seven hundred journalist and analysts in over one hundred twenty

170
00:09:00,000 --> 00:09:02,319
Speaker 3: anti countries. I'm Michael Barr. This is Bloomberg Nather.

171
00:09:02,480 --> 00:09:04,160
Speaker 2: I want to ask you to pronounce that breed again.

172
00:09:04,720 --> 00:09:12,160
Speaker 2: Thank you, Michael. It time down for our Bloomberg Sports Update.

173
00:09:12,200 --> 00:09:13,920
Speaker 2: Good morning, John, Staneshawer.

174
00:09:13,440 --> 00:09:15,880
Speaker 4: Good morning Nathan. The day did not begin well for

175
00:09:15,920 --> 00:09:17,920
Speaker 4: the Mets with the news that Max Schurzer was not

176
00:09:17,960 --> 00:09:20,120
Speaker 4: going to be able to make his start in Cincinnati

177
00:09:20,320 --> 00:09:24,400
Speaker 4: next spasm, so David Peterson rushed up from Syracuse and dropped.

178
00:09:24,080 --> 00:09:25,360
Speaker 3: To one and five.

179
00:09:25,440 --> 00:09:27,640
Speaker 4: The Reds led seven to one in the fifth inning,

180
00:09:27,640 --> 00:09:30,040
Speaker 4: the met rally fell short. Cincinnati won seven to six,

181
00:09:30,520 --> 00:09:33,240
Speaker 4: and the Mets have now lost twelve of their last fifteen,

182
00:09:33,360 --> 00:09:37,439
Speaker 4: eight games behind Atlanta. Justin Verlander starts tonight at the Stadium.

183
00:09:37,480 --> 00:09:40,080
Speaker 4: Welcome back Aaron Judge, he had missed the last ten games.

184
00:09:40,160 --> 00:09:43,439
Speaker 4: Yankees got home runs from Clabor Torres and Jake Bowers.

185
00:09:43,480 --> 00:09:45,120
Speaker 4: They both drove in three runs in a ten to

186
00:09:45,240 --> 00:09:48,240
Speaker 4: five win over Oakland, who fell to eight and twenty nine.

187
00:09:48,320 --> 00:09:51,360
Speaker 4: Clark Schmid's eighth start, he finally got his first winning.

188
00:09:51,400 --> 00:09:54,080
Speaker 4: The Yanks go for a series suite this afternoon. The

189
00:09:54,080 --> 00:09:57,040
Speaker 4: Carolina Hurricanes coming off in eight to four loss in

190
00:09:57,160 --> 00:09:59,920
Speaker 4: Game three in Newark one Game four over the Devils

191
00:10:00,320 --> 00:10:03,240
Speaker 4: six to one, the Kings with a five goal second period,

192
00:10:03,280 --> 00:10:05,319
Speaker 4: and now they go back to Raleigh up three to

193
00:10:05,360 --> 00:10:08,480
Speaker 4: one in the series. Dallas won six to three at Seattle.

194
00:10:08,559 --> 00:10:10,440
Speaker 4: That series is tied at two. A couple of game

195
00:10:10,480 --> 00:10:14,199
Speaker 4: fives in the NBA Sixers beat the Celtics easily in Boston,

196
00:10:14,200 --> 00:10:16,760
Speaker 4: so they go home up three too. Denver beat Phoenix.

197
00:10:17,120 --> 00:10:19,640
Speaker 4: Home teams won every game in that series. The next

198
00:10:19,640 --> 00:10:22,280
Speaker 4: hoping that being out of Miami and at the Garden

199
00:10:22,760 --> 00:10:25,880
Speaker 4: can help them stave off elimination. It's not over yet.

200
00:10:26,080 --> 00:10:26,760
Speaker 4: The coach down.

201
00:10:26,720 --> 00:10:31,959
Speaker 9: Thibodel went forward to win a series. So all we're

202
00:10:32,000 --> 00:10:35,560
Speaker 9: thinking about is win the next game. Go quarter by quarter,

203
00:10:36,120 --> 00:10:39,160
Speaker 9: win the first quarter, win, the second quarter, win the third,

204
00:10:39,880 --> 00:10:43,200
Speaker 9: win the fourth, and then the next day we'll worry

205
00:10:43,200 --> 00:10:45,040
Speaker 9: about the next day. Just while we're doing is thinking

206
00:10:45,080 --> 00:10:45,800
Speaker 9: about the next game.

207
00:10:45,960 --> 00:10:47,960
Speaker 4: Nicks have yet to beat the Heat when they've had

208
00:10:48,040 --> 00:10:50,199
Speaker 4: Jimmy Butler. He set out the only game the Heat lost.

209
00:10:50,280 --> 00:10:52,200
Speaker 4: Lakers are up three one. They've got Game five tonight

210
00:10:52,520 --> 00:10:55,439
Speaker 4: at Golden State. John Stash Edward Bloomberg's Toys.

211
00:10:58,040 --> 00:11:01,400
Speaker 5: Live from coast to coast, from New York, tes En Francisco,

212
00:11:01,640 --> 00:11:06,480
Speaker 5: Boston to Washington, DC nationwide on sirisxam The Bloomberg Business

213
00:11:06,520 --> 00:11:10,200
Speaker 5: Appened Bloomberg dot Com. This is Bloomberg Daybreak.

214
00:11:11,360 --> 00:11:11,800
Speaker 12: Good morning.

215
00:11:11,840 --> 00:11:14,520
Speaker 2: I'm Nathan Hager. The first meeting on the debt ceiling

216
00:11:14,559 --> 00:11:17,640
Speaker 2: between President Biden and Speaker McCarthy has ended with an

217
00:11:17,679 --> 00:11:20,680
Speaker 2: agreement to keep talking. Both sides planned to meet again

218
00:11:20,880 --> 00:11:24,160
Speaker 2: Friday to discuss ways to avoid a government default. But

219
00:11:24,240 --> 00:11:26,760
Speaker 2: the President is drawing a line in the sand.

220
00:11:27,440 --> 00:11:29,760
Speaker 8: I made clear during our meeting that default is not

221
00:11:30,000 --> 00:11:34,319
Speaker 8: an option. Repeated that time and again. America is not

222
00:11:34,600 --> 00:11:35,439
Speaker 8: a dead beat.

223
00:11:35,360 --> 00:11:39,760
Speaker 2: Nation President Biden following that White House meeting yesterday. This morning,

224
00:11:39,800 --> 00:11:43,280
Speaker 2: we're joined by Greg Valier, chief US policy strategist at

225
00:11:43,320 --> 00:11:47,000
Speaker 2: AGF Investments. Greg, good morning. I know expectations are pretty

226
00:11:47,080 --> 00:11:51,720
Speaker 2: low going into this meeting, anyway. Did they meet your expectations.

227
00:11:51,800 --> 00:11:55,280
Speaker 14: My expectations, Dathan, We're pretty low, and they weren't met.

228
00:11:57,480 --> 00:12:03,640
Speaker 14: Very inconclusive, not success full, huge differences between the two parties.

229
00:12:03,679 --> 00:12:07,679
Speaker 14: They have to say something positive, and therefore they have

230
00:12:07,760 --> 00:12:10,240
Speaker 14: announced that I have another meeting on Friday. You know,

231
00:12:10,320 --> 00:12:12,600
Speaker 14: maybe there'll be an agreement on a couple of areas

232
00:12:12,640 --> 00:12:15,880
Speaker 14: of spending cuts. But times running out. I mean, I

233
00:12:15,960 --> 00:12:19,000
Speaker 14: don't see a deal for weeks, which means to me

234
00:12:19,440 --> 00:12:21,199
Speaker 14: there's going to have to be an extension.

235
00:12:21,960 --> 00:12:25,960
Speaker 2: Is there going to be a default? Is that still

236
00:12:26,000 --> 00:12:26,880
Speaker 2: a possibility?

237
00:12:27,559 --> 00:12:30,200
Speaker 14: You can't totally rule it out. I think the markets

238
00:12:30,240 --> 00:12:35,319
Speaker 14: have been too sanguine, although treasury yields, especially short treasuries

239
00:12:35,920 --> 00:12:40,079
Speaker 14: for bills, have begun to reflect some anxiety. But no,

240
00:12:40,480 --> 00:12:42,800
Speaker 14: I think at some point it might not be until

241
00:12:42,840 --> 00:12:45,640
Speaker 14: a fall. At some point I think we will get

242
00:12:45,840 --> 00:12:49,880
Speaker 14: a deal, but default is definitely on the table as

243
00:12:49,920 --> 00:12:50,760
Speaker 14: a possibility.

244
00:12:51,240 --> 00:12:53,959
Speaker 2: You mentioned as they did that. There's going to be

245
00:12:54,080 --> 00:12:56,680
Speaker 2: more talks on Friday. We're told as well. They are

246
00:12:56,720 --> 00:12:59,400
Speaker 2: going to be behind the scenes discussions that have we've

247
00:12:59,480 --> 00:13:03,440
Speaker 2: were told kicked off yesterday leading up to that highest

248
00:13:03,559 --> 00:13:06,440
Speaker 2: level meeting on Friday. What kind of progress, if any,

249
00:13:06,480 --> 00:13:09,280
Speaker 2: could we see in the behind the scenes discussions.

250
00:13:10,040 --> 00:13:12,560
Speaker 14: Yeah, I think there's an agreement, and even Biden would

251
00:13:12,679 --> 00:13:16,280
Speaker 14: agree on maybe clawing back some pandemic aid that went

252
00:13:16,320 --> 00:13:18,880
Speaker 14: to states that haven't spent all the money. There might

253
00:13:18,960 --> 00:13:22,199
Speaker 14: be some restrictions on people who get federal benefits like

254
00:13:22,280 --> 00:13:25,760
Speaker 14: food stamps who were unwilling to work. There might be

255
00:13:25,840 --> 00:13:28,880
Speaker 14: an agreement on a spending cap for a year or two.

256
00:13:29,320 --> 00:13:32,319
Speaker 14: So there are areas of agreement. The problem is you

257
00:13:32,480 --> 00:13:36,760
Speaker 14: have to divorce that debate with the debate over extending

258
00:13:36,800 --> 00:13:39,559
Speaker 14: the debt ceiling, and both parties are really dug in

259
00:13:39,720 --> 00:13:40,400
Speaker 14: on that issue.

260
00:13:40,760 --> 00:13:40,880
Speaker 9: Now.

261
00:13:40,960 --> 00:13:43,760
Speaker 2: There's so much going on in Washington apart from the

262
00:13:43,840 --> 00:13:47,559
Speaker 2: debt ceiling talks. Although this could be related given that

263
00:13:48,080 --> 00:13:51,920
Speaker 2: Congressman George Santos is part of a very slim majority

264
00:13:52,080 --> 00:13:56,360
Speaker 2: in this House of Representatives. Now he's facing potential he

265
00:13:56,520 --> 00:14:00,120
Speaker 2: is facing criminal charges. Where do you see this going, Greg.

266
00:14:00,760 --> 00:14:03,400
Speaker 14: Well, probably at some point with his resignation. I don't

267
00:14:03,400 --> 00:14:06,040
Speaker 14: think it's imminent. But Nathan, let me tell you, I

268
00:14:06,600 --> 00:14:09,880
Speaker 14: was taken aback yesterday that all the attention was on

269
00:14:10,120 --> 00:14:14,760
Speaker 14: Santos and of course the Donald Trump legal defeat, and

270
00:14:14,880 --> 00:14:18,240
Speaker 14: virtually no attention was on the death ceiling. It's like

271
00:14:18,360 --> 00:14:22,240
Speaker 14: the death ceiling still has not acquired a sense of urgency.

272
00:14:22,760 --> 00:14:26,600
Speaker 14: All these other stories and there's immigration issues, Hunter Biden issues,

273
00:14:26,680 --> 00:14:29,800
Speaker 14: lots of more stuff this week, it all diminishes the

274
00:14:29,920 --> 00:14:32,480
Speaker 14: sense of urgency on avoiding default.

275
00:14:32,720 --> 00:14:34,560
Speaker 2: Well why do you think that is, Greg, Why don't

276
00:14:34,600 --> 00:14:36,240
Speaker 2: we see that sense of urgency right now?

277
00:14:36,880 --> 00:14:38,880
Speaker 14: Well, it's a good question, Nathan, and I would say

278
00:14:38,920 --> 00:14:42,040
Speaker 14: it's because the markets. The stock market has not shown

279
00:14:42,120 --> 00:14:45,080
Speaker 14: any anxiety. As I mentioned, the short end of the

280
00:14:45,160 --> 00:14:49,200
Speaker 14: bond market has. But I think for stock investors there's

281
00:14:49,200 --> 00:14:51,760
Speaker 14: a feeling that at some point will get a deal.

282
00:14:51,960 --> 00:14:55,720
Speaker 14: And that's probably right, but I think we're weeks or

283
00:14:55,880 --> 00:14:58,360
Speaker 14: months away from getting any kind of a deal.

284
00:14:58,600 --> 00:14:59,880
Speaker 2: Well, it does kind of feel like we have a

285
00:15:00,120 --> 00:15:02,920
Speaker 2: hil on of headlines coming out of Washington, a lot

286
00:15:02,960 --> 00:15:06,920
Speaker 2: of headline risks coming out with the Santos legal pressures,

287
00:15:07,000 --> 00:15:10,120
Speaker 2: and now former President Trump being found liable in the

288
00:15:10,160 --> 00:15:13,240
Speaker 2: eging Carol case, just as he's getting ready to take

289
00:15:13,280 --> 00:15:18,320
Speaker 2: the stage with CNN network that he's repeatedly called fake

290
00:15:18,440 --> 00:15:23,080
Speaker 2: news and not wanted to talk to literally for years. Now,

291
00:15:23,680 --> 00:15:25,960
Speaker 2: how do you see all this playing out in the

292
00:15:26,040 --> 00:15:30,080
Speaker 2: presidential race as the former president takes the stage tonight?

293
00:15:30,680 --> 00:15:35,800
Speaker 14: What a dichotomy right now? Among ordinary Republican voters, the

294
00:15:35,880 --> 00:15:39,440
Speaker 14: Republican base, Trump's got a lead of like thirty points

295
00:15:39,480 --> 00:15:43,120
Speaker 14: against Ron DeSantis. But among Republicans I talk to here

296
00:15:43,760 --> 00:15:47,520
Speaker 14: inside the Beltway in Washington, there's great anxiety that if

297
00:15:47,560 --> 00:15:50,280
Speaker 14: Trump is the nominee, he would lose and he'd probably

298
00:15:50,400 --> 00:15:53,320
Speaker 14: drag down House and Senate seats. So you've got this

299
00:15:53,520 --> 00:15:56,560
Speaker 14: great division within the Republican party that I think is

300
00:15:56,600 --> 00:15:57,960
Speaker 14: going to persist for quite a while.

301
00:15:58,280 --> 00:16:00,920
Speaker 2: In just about thirty seconds left, with so many big

302
00:16:01,080 --> 00:16:04,200
Speaker 2: donors on the sidelines, do you see anyone breaking through

303
00:16:04,480 --> 00:16:06,760
Speaker 2: to get donors to get back in the game.

304
00:16:07,440 --> 00:16:09,960
Speaker 14: Yeah, that's a really interesting angle. I think there are

305
00:16:10,080 --> 00:16:14,080
Speaker 14: some other possible candidates. Joe Manchin still has the itch,

306
00:16:14,480 --> 00:16:16,920
Speaker 14: and what if Kevin McCarthy gets a budget deal, could

307
00:16:16,960 --> 00:16:21,320
Speaker 14: he all of a sudden plunge in. There's lots of

308
00:16:21,440 --> 00:16:25,840
Speaker 14: other possibilities, including Glenn Youngkin, the Governor of Virginia. But

309
00:16:26,000 --> 00:16:28,320
Speaker 14: for right now, I think things will stay frozen until

310
00:16:28,360 --> 00:16:30,120
Speaker 14: we get the budget story resolved.

311
00:16:33,040 --> 00:16:35,920
Speaker 6: This is Bloomberg day Break Today, your morning brief on

312
00:16:36,040 --> 00:16:39,520
Speaker 6: the stories making news from Wall Street to Washington and beyond.

313
00:16:39,840 --> 00:16:42,560
Speaker 1: Look for us on your podcast feed at six am

314
00:16:42,680 --> 00:16:46,320
Speaker 1: Eastern each morning, on Apple, Spotify, and anywhere else you

315
00:16:46,440 --> 00:16:47,400
Speaker 1: get your podcasts.

316
00:16:47,720 --> 00:16:50,400
Speaker 6: You can also listen live each morning starting at five

317
00:16:50,440 --> 00:16:53,040
Speaker 6: am Wall Street time on Bloomberg eleven three to zero

318
00:16:53,120 --> 00:16:55,880
Speaker 6: in New York, Bloomberg ninety nine to one in Washington,

319
00:16:56,040 --> 00:16:59,160
Speaker 6: Bloomberg one six to one in Boston, and Bloomberg nine

320
00:16:59,280 --> 00:17:00,640
Speaker 6: sixty Francisco.

321
00:17:01,080 --> 00:17:04,200
Speaker 1: Our flagship New York station is also available on your

322
00:17:04,280 --> 00:17:09,280
Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

323
00:17:09,400 --> 00:17:12,240
Speaker 6: Plus listen coast to coast on the Bloomberg Business app,

324
00:17:12,359 --> 00:17:16,159
Speaker 6: serious XM Channel one nineteen, the iHeartRadio app, and on

325
00:17:16,280 --> 00:17:19,720
Speaker 6: Bloomberg dot Com. I'm Nathan Hager and I'm Karen Moscow.

326
00:17:19,960 --> 00:17:22,680
Speaker 1: Join us again tomorrow morning for all the news you

327
00:17:22,840 --> 00:17:26,000
Speaker 1: need to start your day right here on Bloomberg Daybreak