Speaker 1: From the Bloomberg Interactive Burgers Studios. This is Bloomberg day
Speaker 1: Break for Wednesday, May tenth.
Speaker 2: Coming up today, Debt ceiling talks continue after the first
Speaker 2: meeting between President Biden and Speaker McCarthy.
Speaker 1: Congressman George Santos has indicted on federal charges.
Speaker 2: Former President Trump is found liable for sexually assaulting Egene Carol.
Speaker 1: And Wall Street awaits the latest reading on inflation.
Speaker 3: Governor Heppel says New York State is preparing for an
Speaker 3: influx of asylum seekers. Plus we're learning more about the
Speaker 3: gunman who killed eight people on the Texas mall. I'm
Speaker 3: Michael Barr. More ahead, I'm.
Speaker 4: John Stave Sharon Sports. The Yankees won, the Mets lost,
Speaker 4: The Devil's lost Game four, The Knick seb Game five tonight.
Speaker 5: That's all straight Ahead on Bloomberg day Break, The business
Speaker 5: news you need to starn your day in just one
Speaker 5: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg
Speaker 5: Business app, and everywhere you get your podcasts.
Speaker 6: Good morning, I'm Nathan Hager.
Speaker 1: And I'm Karen Moscow. Here are the stories we're following today.
Speaker 2: We have a slew of political news this morning. Not
Speaker 2: much progress came from yesterday's debt ceiling meeting at the
Speaker 2: White House, as the US inches closer to a first
Speaker 2: ever default. Amy Morris has details from our Bloomberg ninety
Speaker 2: nine to one newsroom in Washington. They will have another
Speaker 2: meeting on Friday. House Speaker Kevin McCarthy.
Speaker 4: I didn't find progress. Staff will continue to.
Speaker 7: Meet, but President Biden called it a productive meeting and
Speaker 7: says default is not an option.
Speaker 8: Our economy would fall into a significant recession. It would
Speaker 8: devastate retirement accounts, increase borrowing costs. According to Moodies, nearly
Speaker 8: eight million Americans would lose their job.
Speaker 7: For now, the intensified negotiations can at least temporarily assuage
Speaker 7: markets before June first, that's when Treasury Secretary Janet Yellen
Speaker 7: has warned the nation risks default in Washington. I'm Amy Morris,
Speaker 7: Bloomberg Daybreak.
Speaker 1: All right, Amy, thanks.
Speaker 9: Well.
Speaker 1: Even if KNG Vris and President Biden reach a debt
Speaker 1: ceiling deal, the process could threaten economic growth, especially if
Speaker 1: it involves cutting infrastructure spending. That's a view from Morgan
Speaker 1: Stanley Wealth Management Chief investment Officer Lisa Shalott.
Speaker 10: It matters, you know, to forward looking expectations of growth
Speaker 10: in terms of what is cut, those things have been
Speaker 10: a support to growth and if we need to take
Speaker 10: that out of the forward forecasts, that is going to
Speaker 10: dampen economic growth.
Speaker 1: Morgan Stanley's Lisa Shallett is watching for what Treasury Secretary
Speaker 1: Janet Yellen will do after she gets approval to extend borrowing.
Speaker 2: Well outside of the debt ceiling, Karen, The political headlines
Speaker 2: are hitting George Santos this morning. The congressman from New
Speaker 2: York will now face criminal charges stemming from campaign finance laws.
Speaker 2: Bloomberg's Ed Baxter has the story.
Speaker 11: Santos, who took office despite fabricating much of what he
Speaker 11: claimed about his education and career, has been indicted on
Speaker 11: federal charges. Bloomberg sources say charges could be unsealed as
Speaker 11: early as today, and that he could be prosecuted on
Speaker 11: Long Island. Santos reported he loaned his campaign over seven
Speaker 11: hundred thousand dollars and claimed to be worth between two
Speaker 11: point six and eleven point two million dollars. House Speaker
Speaker 11: Kevin McCarthy says if Santos is convicted, he would have
Speaker 11: to leave Congress in San Francisco. I'm at Baxter Bloomberg Daybreak.
Speaker 1: All right, and thanks well. Donald Trump is also on
Speaker 1: the front pages this morning, and new York jury found
Speaker 1: the former president liable for sexually assaulting a woman and
Speaker 1: then defaming her. We get the details from Bloomberg's John
Speaker 1: Tucker in New York, John Karen.
Speaker 12: The jury returned its verdict sam to just three hours
Speaker 12: of deliberations. Trump's claims he could not have assaulted Egene
Speaker 12: Carroll because she was not his type was at the
Speaker 12: center of the case. Carol's attorneys managed to use those
Speaker 12: words against him. I showed video from his deposition where
Speaker 12: he confused Carol for ex wife Marla Maples when shown
Speaker 12: a photover Trump released a series of videos on social
Speaker 12: media last night with his response.
Speaker 11: I don't even know who this woman is.
Speaker 7: I have no idea who she is, where she came from.
Speaker 12: In a statement, Carol said this victory is not just
Speaker 12: for me, but for every woman who suffered because she
Speaker 12: was not believed. The jury stopped short of finding Trump
Speaker 12: liable for rape. He must pay her five million dollars
Speaker 12: in damages, three million of it for defamation. Trump will
Speaker 12: appeal the verdict in New York. I'm John Tucker Bloomberg Daybreak.
Speaker 2: Well, Johnny, remains to be seen what impact Trump's legal
Speaker 2: problems have on his presidential bid, but we're getting where
Speaker 2: to Wall Street. Titan has met with another presumed Republican candidate.
Speaker 2: Billionaire Steve Schwartzman recently visited Ron DeSantis, but we're told
Speaker 2: the meeting left Schwartzman unconvinced of the Florida governor's White
Speaker 2: House prospects. Bloomberg News has learned for now, the Blackstone
Speaker 2: co founder will hold off donating money to DeSantis. He
Speaker 2: is currently not supporting anyone in the Republican field.
Speaker 1: Meantime, Nathan, the White House remains focused on immigration concerns.
Speaker 1: President Biden is warning of tumultuous conditions at the the
Speaker 1: US Mexico border when pandemic era restrictions are lifted tomorrow.
Speaker 8: We also are in the process of setting up resident
Speaker 8: offices in Columbia and other places where you can or
Speaker 8: someone seeking to Solenton go first. So but it remains
Speaker 8: to me seen it's going to be chaotic for a while.
Speaker 1: And President Biden said he spent close to an hour
Speaker 1: speaking with Mexican President Andreas Manuel Lopez Obrador about the
Speaker 1: situation here.
Speaker 2: There are signs tensions between the US and China are
Speaker 2: starting to soften. Sources tell US US trade representative Catherine
Speaker 2: Tie plans to meet China's commerce minister in Detroit later
Speaker 2: this month. This will be the most senior in person
Speaker 2: encounter between the nations since the US shotdown at alleged
Speaker 2: Chinese spy balloon in early February.
Speaker 1: And finally, Nathan, we're looking at a big day on
Speaker 1: the economic front. While Street awaits the latest reading on inflation,
Speaker 1: CPI data for April is expected to show high prices
Speaker 1: remain a concern for the Fed. We get a preview
Speaker 1: from Bloomberg's Michael McKee.
Speaker 13: Higher interest rates have helped cut inflation in half over
Speaker 13: the past nine months. Now, he kind of has say
Speaker 13: for the hard rents and rising wages for hard to
Speaker 13: find employees, particularly in the service sector, will break progress
Speaker 13: towards the Fed's goal of an average two percent inflation rate.
Speaker 13: The central bankers think progress will continue if slowly. They
Speaker 13: will leave rates high to ensure that happens, and not
Speaker 13: worry too much about month to month inflation data unless
Speaker 13: it unexpectedly jumps. The question is what will investors think,
Speaker 13: will they have the patients of Fed officials, or will
Speaker 13: we see a big rate reaction to the inflation data.
Speaker 13: Michael McKee Bloomberg Daybreak.
Speaker 2: Time now to take a look at some of the
Speaker 2: other stories making news in New York and around the world.
Speaker 2: For that, we are joined by Bloomberg's Michael Barr. Good Morning, Michael,
Speaker 2: Good morning, Nathan. New York is bracing for a surge
Speaker 2: migrants after Title forty two expires tomorrow. For months, migrant
Speaker 2: workers crossing the southern border have been bussed up from
Speaker 2: Texas the states like New York to be sheltered while
Speaker 2: asylum seekers claims are processed. The majority have been sent
Speaker 2: to New York City, but now Mayor Eric Adams plans
Speaker 2: to send migrants to other counties in the state after
Speaker 2: they arrive in the city. Governor Kathy Oakle says there
Speaker 2: are counties that need workers desperately.
Speaker 9: There's a lot of people.
Speaker 10: We have five thousand openings for farm workers.
Speaker 14: The farmers are asking us to.
Speaker 9: Try and make this happen.
Speaker 10: So it's a multi faceted challenge, but my team has
Speaker 10: been heavily engaged.
Speaker 3: Governor Ockle says she signed an executive order to call
Speaker 3: up the National Guard. The White House is reacting to
Speaker 3: last week's death of a homeless New York subway writer.
Speaker 3: According to a statement, Jordan Neely's killing was tragic and
Speaker 3: deeply disturbing. Our hearts go out to the family and
Speaker 3: loved ones. We firmly believe that the events surrounding his
Speaker 3: death demand a thorough investigation. A grand jury may convene
Speaker 3: this week's way possible charges against Daniel Penny, the marine
Speaker 3: veteran who police say put Neely in a chokehold after
Speaker 3: a disturbance on the subway. Manhattan. DA Alvin Bragg is
Speaker 3: also saying something about the case for the first time.
Speaker 3: Prank says just because his office hasn't said anything doesn't
Speaker 3: mean that they aren't taking it seriously. Authorities say the
Speaker 3: gunman who killed eight people and in Allen, Texas mall,
Speaker 3: legally obtained the weapons despite the acute shooter's troubled background.
Speaker 3: Images uploaded to an account last month indicate the gunman
Speaker 3: may have visited the outlet mall multiple times the past year,
Speaker 3: researching peak hours. State Department of Public Safety official Hank Sibley,
Speaker 3: we do know that.
Speaker 1: He had Neo Nazi idiation, he had patches, he had tattoos,
Speaker 1: even his signature, you know, verified.
Speaker 3: That Sibley says the suspected gunman had eight weapons on him.
Speaker 3: Buddy Holly is top dog at Westminster. The petitpassant graffon
Speaker 3: ven Den beat out more than twenty five hundred of
Speaker 3: the canines to take best in Show at America's premier
Speaker 3: dog show and a first for the Breed Global News
Speaker 3: twenty four hours a day, powered by more than twenty
Speaker 3: seven hundred journalist and analysts in over one hundred twenty
Speaker 3: anti countries. I'm Michael Barr. This is Bloomberg Nather.
Speaker 2: I want to ask you to pronounce that breed again.
Speaker 2: Thank you, Michael. It time down for our Bloomberg Sports Update.
Speaker 2: Good morning, John, Staneshawer.
Speaker 4: Good morning Nathan. The day did not begin well for
Speaker 4: the Mets with the news that Max Schurzer was not
Speaker 4: going to be able to make his start in Cincinnati
Speaker 4: next spasm, so David Peterson rushed up from Syracuse and dropped.
Speaker 3: To one and five.
Speaker 4: The Reds led seven to one in the fifth inning,
Speaker 4: the met rally fell short. Cincinnati won seven to six,
Speaker 4: and the Mets have now lost twelve of their last fifteen,
Speaker 4: eight games behind Atlanta. Justin Verlander starts tonight at the Stadium.
Speaker 4: Welcome back Aaron Judge, he had missed the last ten games.
Speaker 4: Yankees got home runs from Clabor Torres and Jake Bowers.
Speaker 4: They both drove in three runs in a ten to
Speaker 4: five win over Oakland, who fell to eight and twenty nine.
Speaker 4: Clark Schmid's eighth start, he finally got his first winning.
Speaker 4: The Yanks go for a series suite this afternoon. The
Speaker 4: Carolina Hurricanes coming off in eight to four loss in
Speaker 4: Game three in Newark one Game four over the Devils
Speaker 4: six to one, the Kings with a five goal second period,
Speaker 4: and now they go back to Raleigh up three to
Speaker 4: one in the series. Dallas won six to three at Seattle.
Speaker 4: That series is tied at two. A couple of game
Speaker 4: fives in the NBA Sixers beat the Celtics easily in Boston,
Speaker 4: so they go home up three too. Denver beat Phoenix.
Speaker 4: Home teams won every game in that series. The next
Speaker 4: hoping that being out of Miami and at the Garden
Speaker 4: can help them stave off elimination. It's not over yet.
Speaker 4: The coach down.
Speaker 9: Thibodel went forward to win a series. So all we're
Speaker 9: thinking about is win the next game. Go quarter by quarter,
Speaker 9: win the first quarter, win, the second quarter, win the third,
Speaker 9: win the fourth, and then the next day we'll worry
Speaker 9: about the next day. Just while we're doing is thinking
Speaker 9: about the next game.
Speaker 4: Nicks have yet to beat the Heat when they've had
Speaker 4: Jimmy Butler. He set out the only game the Heat lost.
Speaker 4: Lakers are up three one. They've got Game five tonight
Speaker 4: at Golden State. John Stash Edward Bloomberg's Toys.
Speaker 5: Live from coast to coast, from New York, tes En Francisco,
Speaker 5: Boston to Washington, DC nationwide on sirisxam The Bloomberg Business
Speaker 5: Appened Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 12: Good morning.
Speaker 2: I'm Nathan Hager. The first meeting on the debt ceiling
Speaker 2: between President Biden and Speaker McCarthy has ended with an
Speaker 2: agreement to keep talking. Both sides planned to meet again
Speaker 2: Friday to discuss ways to avoid a government default. But
Speaker 2: the President is drawing a line in the sand.
Speaker 8: I made clear during our meeting that default is not
Speaker 8: an option. Repeated that time and again. America is not
Speaker 8: a dead beat.
Speaker 2: Nation President Biden following that White House meeting yesterday. This morning,
Speaker 2: we're joined by Greg Valier, chief US policy strategist at
Speaker 2: AGF Investments. Greg, good morning. I know expectations are pretty
Speaker 2: low going into this meeting, anyway. Did they meet your expectations.
Speaker 14: My expectations, Dathan, We're pretty low, and they weren't met.
Speaker 14: Very inconclusive, not success full, huge differences between the two parties.
Speaker 14: They have to say something positive, and therefore they have
Speaker 14: announced that I have another meeting on Friday. You know,
Speaker 14: maybe there'll be an agreement on a couple of areas
Speaker 14: of spending cuts. But times running out. I mean, I
Speaker 14: don't see a deal for weeks, which means to me
Speaker 14: there's going to have to be an extension.
Speaker 2: Is there going to be a default? Is that still
Speaker 2: a possibility?
Speaker 14: You can't totally rule it out. I think the markets
Speaker 14: have been too sanguine, although treasury yields, especially short treasuries
Speaker 14: for bills, have begun to reflect some anxiety. But no,
Speaker 14: I think at some point it might not be until
Speaker 14: a fall. At some point I think we will get
Speaker 14: a deal, but default is definitely on the table as
Speaker 14: a possibility.
Speaker 2: You mentioned as they did that. There's going to be
Speaker 2: more talks on Friday. We're told as well. They are
Speaker 2: going to be behind the scenes discussions that have we've
Speaker 2: were told kicked off yesterday leading up to that highest
Speaker 2: level meeting on Friday. What kind of progress, if any,
Speaker 2: could we see in the behind the scenes discussions.
Speaker 14: Yeah, I think there's an agreement, and even Biden would
Speaker 14: agree on maybe clawing back some pandemic aid that went
Speaker 14: to states that haven't spent all the money. There might
Speaker 14: be some restrictions on people who get federal benefits like
Speaker 14: food stamps who were unwilling to work. There might be
Speaker 14: an agreement on a spending cap for a year or two.
Speaker 14: So there are areas of agreement. The problem is you
Speaker 14: have to divorce that debate with the debate over extending
Speaker 14: the debt ceiling, and both parties are really dug in
Speaker 14: on that issue.
Speaker 9: Now.
Speaker 2: There's so much going on in Washington apart from the
Speaker 2: debt ceiling talks. Although this could be related given that
Speaker 2: Congressman George Santos is part of a very slim majority
Speaker 2: in this House of Representatives. Now he's facing potential he
Speaker 2: is facing criminal charges. Where do you see this going, Greg.
Speaker 14: Well, probably at some point with his resignation. I don't
Speaker 14: think it's imminent. But Nathan, let me tell you, I
Speaker 14: was taken aback yesterday that all the attention was on
Speaker 14: Santos and of course the Donald Trump legal defeat, and
Speaker 14: virtually no attention was on the death ceiling. It's like
Speaker 14: the death ceiling still has not acquired a sense of urgency.
Speaker 14: All these other stories and there's immigration issues, Hunter Biden issues,
Speaker 14: lots of more stuff this week, it all diminishes the
Speaker 14: sense of urgency on avoiding default.
Speaker 2: Well why do you think that is, Greg, Why don't
Speaker 2: we see that sense of urgency right now?
Speaker 14: Well, it's a good question, Nathan, and I would say
Speaker 14: it's because the markets. The stock market has not shown
Speaker 14: any anxiety. As I mentioned, the short end of the
Speaker 14: bond market has. But I think for stock investors there's
Speaker 14: a feeling that at some point will get a deal.
Speaker 14: And that's probably right, but I think we're weeks or
Speaker 14: months away from getting any kind of a deal.
Speaker 2: Well, it does kind of feel like we have a
Speaker 2: hil on of headlines coming out of Washington, a lot
Speaker 2: of headline risks coming out with the Santos legal pressures,
Speaker 2: and now former President Trump being found liable in the
Speaker 2: eging Carol case, just as he's getting ready to take
Speaker 2: the stage with CNN network that he's repeatedly called fake
Speaker 2: news and not wanted to talk to literally for years. Now,
Speaker 2: how do you see all this playing out in the
Speaker 2: presidential race as the former president takes the stage tonight?
Speaker 14: What a dichotomy right now? Among ordinary Republican voters, the
Speaker 14: Republican base, Trump's got a lead of like thirty points
Speaker 14: against Ron DeSantis. But among Republicans I talk to here
Speaker 14: inside the Beltway in Washington, there's great anxiety that if
Speaker 14: Trump is the nominee, he would lose and he'd probably
Speaker 14: drag down House and Senate seats. So you've got this
Speaker 14: great division within the Republican party that I think is
Speaker 14: going to persist for quite a while.
Speaker 2: In just about thirty seconds left, with so many big
Speaker 2: donors on the sidelines, do you see anyone breaking through
Speaker 2: to get donors to get back in the game.
Speaker 14: Yeah, that's a really interesting angle. I think there are
Speaker 14: some other possible candidates. Joe Manchin still has the itch,
Speaker 14: and what if Kevin McCarthy gets a budget deal, could
Speaker 14: he all of a sudden plunge in. There's lots of
Speaker 14: other possibilities, including Glenn Youngkin, the Governor of Virginia. But
Speaker 14: for right now, I think things will stay frozen until
Speaker 14: we get the budget story resolved.
Speaker 6: This is Bloomberg day Break Today, your morning brief on
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