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Speaker 1: From the Bloomberg Interactive Burgers Studios. This is Bloomberg day

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Speaker 1: Break for Thursday, May eleventh.

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Speaker 2: Coming up today, Janet Yellen says a debt default could

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Speaker 2: impact national security.

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Speaker 1: Donald Trump orges Republicans to get spending cuts or push

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Speaker 1: the country into default.

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Speaker 2: The Biden administration warrants of difficulty at the border as

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Speaker 2: Title forty two winds.

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Speaker 1: And Disney shares slump as subscriber growth falls.

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Speaker 3: New York Manior Adams calls for more mental health services

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Speaker 3: after the chokehold death of a homeless man. Plus Democrat

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Speaker 3: Dane Feinstein was back on the Senate floor. I'm Michael Barr.

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Speaker 3: Or ahead, I'm.

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Speaker 4: John Stanstown Swards. The Knicks kept their season alive. They

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Speaker 4: beat the Heat and game five wins for the Mets

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Speaker 4: and Yankees.

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Speaker 5: That's all straight Ahead on Bloomberg day Break, the business

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Speaker 5: news you need to starn your day in just one

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Speaker 5: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg Business.

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Speaker 6: Appen everywhere you get your podcasts.

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Speaker 2: Good morning, I'm Nathan Hager.

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Speaker 1: And I'm Karen Moscow. Here are the stories we're following today.

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Speaker 2: We begin with the debt ceiling stalemate. Treasury Secretary Janet

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Speaker 2: Yellen says failure to avoid a default would have devastating consequences.

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Speaker 7: In my assessment, and that if economists across the board,

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Speaker 7: a default on US obligations would produce an economic and

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Speaker 7: financial catastrophe. A default would threaten the gains that we've

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Speaker 7: worked so hard to make over the past few years

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Speaker 7: in our pandemic recovery, and it would spark a global

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Speaker 7: downturn that would set us back much further.

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Speaker 2: Speaking at the G seven in Japan, Yellen said a

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Speaker 2: default would also undermine Washington's ability to defend national security. Meanwhile,

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Speaker 2: President Biden says an agreement needs to be reached.

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Speaker 8: If we default on our debt, the whole world is

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Speaker 8: in trouble. This is a manufactured crisis. There's no question

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Speaker 8: about America's ability to pay its bills. Am strongest economy

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Speaker 8: in the world. We should be cutting spending the lower

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Speaker 8: in the depth, so without a needless crisis, in a

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Speaker 8: responsible way.

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Speaker 2: President Biden is scheduled to resume debt talks with House

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Speaker 2: Speaker Kevin McCarthy tomorrow. It's a subject we will address

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Speaker 2: in an exclusive interview with Janet Yellen. Tune in for

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Speaker 2: that conversation with the Treasury Secretary tomorrow morning. On Bloomberg Daybreak.

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Speaker 1: Meantime, Nathan Donald Trump is weighing in on debt ceiling talks.

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Speaker 1: The Republican presidential front runner is urging his party not

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Speaker 1: to give in.

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Speaker 9: I say to the Republicans out there, congressman, senators, if

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Speaker 9: they don't give you massive cuts, you're going to have

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Speaker 9: to do a default. And I don't believe they're going

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Speaker 9: to do a default because I think the Democrats will

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Speaker 9: absolutely cave.

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Speaker 1: Former President Trump made the comments at a town hall

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Speaker 1: event with CNN last night.

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Speaker 2: Well, the default deadline, Karen, isn't the only one we're following.

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Speaker 2: This morning. Hundreds of US troops are being deployed to

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Speaker 2: the US southern border, along with marshalls, immigration officials, and

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Speaker 2: the National Guard, as Title forty two restrictions come to

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Speaker 2: an end. Amy Morris has details from our Bloomberg ninety

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Speaker 2: nine one newsroom in Washington.

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Speaker 10: Title forty two allowed US officials to expel migrants who

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Speaker 10: crossed the southern border because of COVID restrictions, but the

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Speaker 10: COVID Health Emergency was allowed to expire, and so was

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Speaker 10: Title forty two. New immigration policies will be in effect

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Speaker 10: at the border, and the Biden administration is bracing for

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Speaker 10: a new wave of migrants. Homeland Security Secretary Alejandra Mayorcis

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Speaker 10: tells ABC difficult days lie ahead.

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Speaker 4: Make no mistake about it. It's going to be difficult

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Speaker 4: for a while, and that is indeed what we are experiencing.

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Speaker 10: The US has agreements with several countries to deny entry

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Speaker 10: and send migrants back to their country of origin. Regional

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Speaker 10: centers are also being set up to determine asylum status

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Speaker 10: before they even start their journey, and it will be

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Speaker 10: harder to claim asylum status in Washington. I Amy Morris

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Speaker 10: Bloomberg Daybreak.

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Speaker 1: All right, Amy, thanks well. Elsewhere in politics and New York,

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Speaker 1: Congressman George Santo sash Fleeta not guilty to a broad

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Speaker 1: range of fraud and money laundering charges the Long Island

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Speaker 1: or Allan is to find mounting pressure that he resigned.

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Speaker 11: I'm gonna fight my battle, I'm gonna deliver, I'm gonna

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Speaker 11: fight the witchard.

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Speaker 2: I'm going to take care of Clary my name, and

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Speaker 2: I look forward to doing that.

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Speaker 1: And Congressman Santos spoke outside a federal courthouse on Long

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Speaker 1: Island after posting a half million dollar bond. The thirteen

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Speaker 1: count indictment accuses Santos of using campaign donations for his

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Speaker 1: personal benefit, applying for jobless benefits while he was working

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Speaker 1: during the pandemic, and lying to the House of Representatives.

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Speaker 2: Let's turn the markets now, Karen. We're watching shares of

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Speaker 2: Disney this morning. They're down more than five percent. Profit

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Speaker 2: was in line with estimates, but the company's streaming service,

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Speaker 2: Disney Plus, lost subscribers for the second straight quarter. Geeta

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Speaker 2: Ronganathan covers Disney for Bloomberg Intelligence.

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Speaker 12: The subscriber loss is a little bit concerning. We do

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Speaker 12: know that they implemented a forty percent price hike on

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Speaker 12: their Disney Plus service towards the end of last year,

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Speaker 12: so it's going to be interesting to see whether it

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Speaker 12: was the churn that kind of cossed that subscriber loss.

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Speaker 2: Keita Ronganathan with Bloomberg Intelligence says paid subscriptions to this

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Speaker 2: d Plus fell below one hundred and fifty eight million,

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Speaker 2: analysts that expected just over one hundred and sixty three million.

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Speaker 1: Melana Economic Front today, Nathan, we will get our second

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Speaker 1: reading on inflation in as many days.

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Speaker 10: This time, it's day.

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Speaker 1: On April's producer prices, we get a preview from Bloomberg's

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Speaker 1: Michael McKee.

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Speaker 13: A rebound is forecast after producer prices unexpectedly fell in March.

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Speaker 13: The drop didn't lead to a fall in consumer prices,

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Speaker 13: which rose during April. The two series don't directly translate,

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Speaker 13: as processing, transportation, and other middleman costs affect what consumers pay.

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Speaker 13: That said, a small increase in wholesale prices in April

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Speaker 13: would still leave headline and core PPI inflation lower for

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Speaker 13: the year, a trend that would be a good sign

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Speaker 13: at least that the Fed is on the right track

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Speaker 13: and its efforts to bring down inflation, although today's report

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Speaker 13: likely will have no impact on their next policy decision

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Speaker 13: in June. Michael McKee Bloomberg Daybreak.

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Speaker 2: No Mike Thanks. In Europe, the Bank of England set

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Speaker 2: to raise interest rates by a quarter point today. The

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Speaker 2: move would take the UK's base ate to its highest

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Speaker 2: level since two thousand and eight. The Bloomberg UK correspondent

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Speaker 2: Lizzie Burden says, we are not expecting a unanimous decision

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Speaker 2: from the Central Bank, and.

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Speaker 14: We are expecting a quarter point height to four point

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Speaker 14: five percent, but there is going to be a vote

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Speaker 14: split on the committee. Economists reckon it'll be the same

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Speaker 14: as last time, seven to two, because you've got doves

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Speaker 14: like Silvana ten Rairo saying to be a hawk right

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Speaker 14: now is like being a fool in the shower.

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Speaker 2: Time out to take a look at some of the

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Speaker 2: other stories making news in New York and around the

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Speaker 2: world with Bloomberg's Michael By.

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Speaker 3: Good Morning, Michael, Good morning, Nathan. New York Mayor Eric

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Speaker 3: Adams is calling for more mental health services following the

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Speaker 3: chokehold death of a homeless man on a city subway train.

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Speaker 3: Authority s Jordan Neely had a history of mental illness

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Speaker 3: before he was choked to death allegedly by a Marine veteran.

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Speaker 3: Daniel Penny says Neely was acting aggressively in the subway car.

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Speaker 15: Mayor Adams Jordan Neely did not deserve to die, and

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Speaker 15: all of us must work together to do more for

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Speaker 15: brothers and sisters struggling with serious mental illness.

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Speaker 3: Mayor Adams says the circumstances surrounding Neely's death are still

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Speaker 3: being investigated. California Democratic Senator Dianne Feinstein appeared on the

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Speaker 3: Senate floor and voted on measures. The oldest serving US

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Speaker 3: senator returned to the Capitol in a wheelchair as she

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Speaker 3: continues to recover from shingles. Her absence has been a

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Speaker 3: problem for Democrats who need her votes on the Judiciary

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Speaker 3: Committee to confirm judicial nominees. Peru's government will allow the

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Speaker 3: extradition to the US of the prime suspect in the

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Speaker 3: unsolved two thousand and five disappearance of American student Natalie

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Speaker 3: Holloway to Aruba. Dutch citizen Jordan van der Slut wi

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Speaker 3: a faced trial for alleged extortion and wire fraud charges

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Speaker 3: stemming from the Holloway case. Van der Slute is currently

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Speaker 3: serving a twenty eight year sentence in Peru for the

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Speaker 3: murder of a young Peruvian woman. It is a growing

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Speaker 3: problem for hospitals namesationwide cyber attacks. Experts say the number

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Speaker 3: of attacks has doubled since twenty sixteen and is driving

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Speaker 3: up the cost of medical care. For twenty eight days,

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Speaker 3: the University of Vermont Medical Center was on the business

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Speaker 3: end of a ransomware attack in twenty twenty. Doctor Stephen Leffler,

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Speaker 3: president of UVM Medical Center.

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Speaker 16: We've had three years of COVID. This was much harder

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Speaker 16: by a factor of ten. There were people that were

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Speaker 16: scheduled for staging cancer operations, and we had to make

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Speaker 16: a decision should we do it? And we did them

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Speaker 16: when it was appropriate. Some we're able to delay.

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Speaker 3: Doctor Leffler says. Thirteen hundred hospital servers and five thousand

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Speaker 3: computers had to be wiped. A job so big, Vermont's

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Speaker 3: governor called in the National Guard. She played Bobby Spencer

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Speaker 3: on the longtime ABC soap General Hospital.

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Speaker 17: I have a younger.

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Speaker 10: I tossed a picture of Margaret Ritis all over you.

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Speaker 3: Jackie Zeman has died at age seventy. Global News twenty

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Speaker 3: four hours a day, powered by more than twenty seven

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Speaker 3: hundred journalist nailists in over one hundred and twenty countries.

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Speaker 3: I'm Michael Barr. This is Bloomberg ninth.

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Speaker 2: Thanks Michael. Time now for the Bloomberg Sports update with

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Speaker 2: John Stanshaller.

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Speaker 4: All right, Nathan long way to go to come back

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Speaker 4: and win the series, but the Knicks and their fans

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Speaker 4: did not want to see the season end on the

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Speaker 4: garden floor. In Game five didn't look great early they

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Speaker 4: heat went up by ten. Then a good Nick finish

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Speaker 4: the first half.

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Speaker 11: Seconds Randal pushing, crowd rising feats fire's the three knocks

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Speaker 11: it down with point six to go cash out. The

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Speaker 11: file drives the lay play up with the bust or dish,

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Speaker 11: and that's.

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Speaker 4: Gonna do it.

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Speaker 2: The first half of the.

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Speaker 11: Books ending with a randall three Knicks by three at

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Speaker 11: fifty to forty seven, took Game five.

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Speaker 3: On ESPN New York.

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Speaker 4: Knicks then had an eighteen to two run third quarter,

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Speaker 4: went up by nineteen. Sure enough, Miami rallied cut it

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Speaker 4: down to two. Nicks held on one thirteen, one oh

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Speaker 4: two Jalen Bruns and carried them, played all forty eight minutes,

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Speaker 4: scored thirty eight points, and the Knicks lived to play

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Speaker 4: another day Tomorrow night. Game six in Miami. Golden State

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Speaker 4: did the same same thing one Game five at home,

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Speaker 4: now needing two more Team six with the Lakers tomorrow

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Speaker 4: in LA Sixers and Nuggets own three two leagus pair

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Speaker 4: of Game six is tonight. The NBA has iired retired

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Speaker 4: legendary Duke coach Mike Skiesheski is a special advisor for operations.

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Speaker 4: The Heat not the only eight seed from South Florida

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Speaker 4: that was last night trying to advance to the conference final.

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Speaker 4: The Panthers had lost in April twenty third. Going for

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Speaker 4: a sweep, Toronto stayed alive, winning two to one. Edmonton

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Speaker 4: beat Vegas. The Devils faced elimination tonight, GEAM five at Carolina.

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Speaker 4: Justin Verlanders first win as a met two to one

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Speaker 4: at Cincinnati, the Yankees first series sweep, eleven three rout

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Speaker 4: of lowly open Tonight at the Stadium, the start of

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Speaker 4: a big four game series with Tampa Bay. The Giants

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Speaker 4: learned their game at Philadelphia. We'll be on Christmas and

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Speaker 4: the Jets will host Miami on Black Friday. John Stashow

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Speaker 4: at Bloomberg.

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Speaker 6: Sports Live from coast to coast, from New York to

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Speaker 6: San Francisco, Boston to Washington, d C. Nationwide on SiriusXM,

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Speaker 6: the Bloomberg Business app in Bloomberg dot Com. This is

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Speaker 6: Bloomberg Daybreak. Good morning, I'm Nathan Hager. The fight over

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Speaker 6: the debt ceiling in the US is now getting international attention.

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Speaker 6: Pressure is building on the White House in Congress to

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Speaker 6: come to an agreement. Treasury Secretary Janet Yellen is in Japan,

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Speaker 6: warning a default on US obligations would be unthinkable.

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Speaker 7: America should never default. It would be tremendously economically and

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Speaker 7: financially damaging.

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Speaker 2: Secretary Yellen spoke ahead of the G seven Finance minister

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Speaker 2: summit in Japan. Let's bring in Julie Norman once again

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Speaker 2: for more on the debt ceiling. FY Julie's co director

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Speaker 2: of the Center on US Politics at University College London.

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Speaker 2: Good morning, Julie. The Treasury Secretary is saying that if

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Speaker 2: the US does flirt with default, it would undermine America's

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Speaker 2: international standing effect national security. Does that add any further

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Speaker 2: pressure on lawmakers back in Washington?

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Speaker 17: Good morning, Nathan. I wish I could say that yes

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Speaker 17: it would, But honestly, you know, Yellen's statements, as important

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Speaker 17: as they are, are things that are hopefully well known

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Speaker 17: to everyone involved in this debate already, that the states

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Speaker 17: of this are extremely high, not only for the United States,

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Speaker 17: but indeed for the world's economy, for the US's sense

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Speaker 17: of leadership within that, and for global market. So I

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Speaker 17: don't think she's saying anything that's a surprise to anyone.

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Speaker 17: It is important that she is saying this at the

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Speaker 17: G seven, But what's really going to matter is what

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Speaker 17: is hashed out in Washington, and unfortunately we're still not

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Speaker 17: seeing much more movement there.

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Speaker 2: Are you surprised that the Treasury Secretary is not in

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Speaker 2: Washington right now when we are about three weeks from

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Speaker 2: the x state that she set.

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Speaker 17: Well, I mean the Jisuban Finance meeting I think is

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Speaker 17: important as well, and you know it's it's again a

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Speaker 17: place where US leadership on economic issues is central, and

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Speaker 17: so it's important for her to be there, I think

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Speaker 17: as well. And look, Yellen, I think was sounding the

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Speaker 17: alarmed bell was about this, you know, months and day advance.

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Speaker 17: She has been a very vocal advocate for trying to

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Speaker 17: get this worked out from the very beginning. So whether

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Speaker 17: she's making comments you know, from Asia or in the

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Speaker 17: US right now, I don't think it's going to make

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Speaker 17: or break the issue. But the important thing is that

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Speaker 17: she's weighing in and she has been doing that consistently.

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Speaker 2: And now we're hearing former President Donald Trump way in

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Speaker 2: as well the CNN town hall last night saying Republicans

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Speaker 2: should go for default if they don't get deep spending cuts.

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Speaker 2: What does that add to this.

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Speaker 17: Julie, Yeah, Well, unfortunately, I think it does give a

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Speaker 17: bit more cover to representatives in the House who want

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Speaker 17: to just double down on this. It makes it a

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Speaker 17: bit harder, I think for McCarthy to, even if he

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Speaker 17: was able to negotiate some kind of agreement with Biden,

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Speaker 17: which is very very far down the road, the idea

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Speaker 17: that he could get everyone in his caucus on board.

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Speaker 17: With Trump saying things like this, it just makes it

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Speaker 17: that much harder. So I do think it muddies things

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Speaker 17: even further when Trump is weighing in, and you know,

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Speaker 17: it rallies base members who may not have been following

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Speaker 17: this issue before. But when Trump starts saying things, people

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Speaker 17: often pay attention and start pressuring that way.

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Speaker 2: Does it get the attention of the people that we're

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Speaker 2: told are negotiating behind the scenes at the staff level

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Speaker 2: to try to come to some kind of middle ground.

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Speaker 17: To a point, honestly, I think those who are at

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Speaker 17: the staff level actually do want to get some kind

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Speaker 17: of deal through. They are very aware of what the

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Speaker 17: stakes are, and I do think the four congressional leaders

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Speaker 17: and Biden who are meeting are all very well aware,

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Speaker 17: but they're all very well aware of the politics around them. Also,

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Speaker 17: I think Biden has learned and perhaps overlearned the lessons

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Speaker 17: from the twenty eleven negotiations and is a bit wary

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Speaker 17: of negotiating with House seeker who just doesn't think has

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Speaker 17: the leverage to push through any kind of negotiated settlement.

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Speaker 17: They don't want to eat big spending cuts like the

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Speaker 17: Obama administration did. But at the same time, I think

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Speaker 17: Biden has also taking political hit by looking like he's

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Speaker 17: not negotiating good faith or being willing to have even

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Speaker 17: a bipartisan conversation.

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Speaker 2: And this all sets u us up for the second

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Speaker 2: round of talks coming up tomorrow. Do you think there's

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Speaker 2: going to be any further progress to come out of

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Speaker 2: the latest discussions? So you got about a minute left here.

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Speaker 17: Yeah, I wish I could say yes, My sense of

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Speaker 17: this is still going to be a little bit more

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Speaker 17: drawn out than that. I think the most we can

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Speaker 17: hope for is some kind of mini agreements with that

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Speaker 17: would allow for an extension for more extended negotiations to

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Speaker 17: go on. What I think we see Biden and Democrats

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Speaker 17: doing now is trying to see if they can get

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Speaker 17: some modern Republicans in the House would maybe vote along

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Speaker 17: with a Democrat bill that would be more of a

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Speaker 17: clean lift, and they seem to still want to see

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Speaker 17: where they can get there before they make too many concessions.

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Speaker 17: So again important is always that they're meeting the sense

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Speaker 17: of a breakthrough. I don't see it happening tomorrow, but

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Speaker 17: we'll see what they say.

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