Speaker 1: From the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak
Speaker 1: for Thursday, April twentieth.
Speaker 2: Coming up today, House Republicans unveil their plan for the
Speaker 2: debt ceiling.
Speaker 1: The legal fight over abortion goes into overtime at the
Speaker 1: Supreme Court.
Speaker 2: Tesla's shares fall as Elon Musk signals more price cuts ahead.
Speaker 2: And we get another.
Speaker 1: Read on the banking industry as a slew of regional
Speaker 1: lenders report earnings.
Speaker 3: The wild car chase in Midtown Manhattan has left an
Speaker 3: officer injured, plus an elderly white man accused of shooting
Speaker 3: of black teen was in a Kansas City court. I'm
Speaker 3: Michael bar Moore Ahead, I'm.
Speaker 2: John staf Sharon's Wards.
Speaker 4: The Mets beat the Dodgers despite Max Scherzer's ejection. Yankees
Speaker 4: a walk off went on the Angels. The Islanders lost
Speaker 4: again at Carolina.
Speaker 5: That's all straight Ahead on Bloomberg day Break, the business
Speaker 5: news you need to sturn your day in just one
Speaker 5: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg
Speaker 5: Business Appen everywhere you get your podcasts.
Speaker 2: Good morning, I'm Nathan Hager and I'm Amy Morris. Here.
Speaker 1: Are the stories we're following today.
Speaker 2: We begin with an offer to address the national debt.
Speaker 2: House Speaker Kevin McCarthy is proposing a bill that would
Speaker 2: add one and a half trillion dollars to the debt ceiling,
Speaker 2: enough to avert a default until March of next year.
Speaker 2: The bill would also cut spending by about one hundred
Speaker 2: and thirty billion dollars, and McCarthy says that's not all.
Speaker 6: Our bill would actually clawback billions and dollars of unspent
Speaker 6: COVID money that.
Speaker 2: Has set for the last two years.
Speaker 6: The American people are tired of politicians who use COVID
Speaker 6: as an excuse for more extreme inflationary spending.
Speaker 2: But President Biden is already rejecting House Speaker McCarthy's plan.
Speaker 7: Magar, Republic and Congress are threatened to default on the
Speaker 7: national debt, the debt that took two hundred and thirty
Speaker 7: years to accumulate overall. Overall, unless we do what they say,
Speaker 7: they say they're going to default unless I agree to
Speaker 7: all these wacko notions they have.
Speaker 2: Presidents spoke at a union hall outside Washington. Now it's
Speaker 2: unclear if McCarthy's plan has enough support from fellow Republicans.
Speaker 2: A vote on the bill could come as soon as
Speaker 2: next week.
Speaker 1: Meantime, Nathan spending on Ukraine remains in focus. The Biden
Speaker 1: administration has announced another package of weapons and ammunition support,
Speaker 1: valued at up to three hundred and twenty five million dollars.
Speaker 1: It will include AMMO for rockets and anti armor systems
Speaker 1: and more artillery rounds. The munitions will be taken from
Speaker 1: US dogpiles. It is the thirty sixth such drawdown.
Speaker 2: Elsewarn Washington Amy, the Supreme Court has made another move
Speaker 2: on reproductive rights. The High Court is allowing access to
Speaker 2: a widely used abortion pill until at least tomorrow. Justices
Speaker 2: are still considering whether to allow longer restrictions on the
Speaker 2: drug Mifa pristone to take effect. Scott Carr has more
Speaker 2: from our Bloomberg ninety nine one newsroom in Washington.
Speaker 8: The Court pushed back at original Wednesday deadline to decide
Speaker 8: whether to allow a Texas judge's order restricting the sale
Speaker 8: and use of Mifa pristone. While a legal challenge to
Speaker 8: the Medicaidation's FDA approval over twenty years ago continues. The
Speaker 8: Biden administration and the drugs maker Danko Labs in New
Speaker 8: York want the High Court to reject the ruling out
Speaker 8: of Texas, at least as long as the case makes
Speaker 8: its way through the courts. The additional time could be
Speaker 8: part of an effort to craft an order that has
Speaker 8: broad support among the justices, and one or more of
Speaker 8: them might be writing a separate opinion. They're now expected
Speaker 8: to act by Friday night. In Washington, I'm Scott Carr,
Speaker 8: Bloomberg Daybreak.
Speaker 1: All right, thank you, Scott. In Texas today, SpaceX hopes
Speaker 1: to launch its next generation starship rocket this morning. A
Speaker 1: problem with pressurization resulted in the previous launch being scrubbed.
Speaker 1: The test flight as seen as a key step towards
Speaker 1: sending humans to the Moon and Mars Corse. Elon Musk
Speaker 1: is a CEO of SpaceX.
Speaker 2: Amy. His other company is in the spotlight as well, Tesla.
Speaker 2: Its shares are down seven and a half percent in
Speaker 2: early trading after profit missed and operating margins came in
Speaker 2: just above eleven percent in the first quarter, down from
Speaker 2: nineteen percent last year. Musk is signaling Tesla will continue
Speaker 2: cutting prices to stoke demand.
Speaker 9: We really don't think about competitors that much. We're the
Speaker 9: only ones making cars that technically we could sell for
Speaker 9: zero profit for now and then yield actually tremendous economics
Speaker 9: in the future through autonomy.
Speaker 2: Elon Musk says the best scenario could see Tesla produce
Speaker 2: as many as two million vehicles this.
Speaker 1: Year, and the parade of earnings continues. This morning, we've
Speaker 1: heard from the big banks. Now the regional lenders report
Speaker 1: they're in the spotlight after the collapse of Silicon Valley Bank.
Speaker 1: More in this live report from Bloomberg's John Tucker and Amy.
Speaker 10: The results will offer investors to insight into the extent
Speaker 10: of the damage from the March banking panic. Under the
Speaker 10: microscope will be banks deposits, and the question everybody wants
Speaker 10: to know is whether spooked customers dump their accounts and
Speaker 10: transfer their cash to the perceived safety of the big banks.
Speaker 10: The results yesterday from Western Lines Bank Or offered some hope.
Speaker 10: That company said deponsits rose two billion dollars. Those shares surged.
Speaker 10: The regional banks reporting today fifth Or Bankcorp, Huntington Bank Shares,
Speaker 10: keycorek America, and Truest Financial. Wallstreet expects to see some
Speaker 10: modern earnings growth driven by increases in net interest to income.
Speaker 10: Live in New York. I'm John Tucker, Bloomberg Daybreak.
Speaker 2: Thank you John. New York FED President John Williams says
Speaker 2: the recent banking termol may make it harder for households
Speaker 2: and businesses to get credit. Williams calls the banking system
Speaker 2: sound and resilient, but he says recent developments will likely
Speaker 2: lead to tighter credit conditions and that will affect spending
Speaker 2: and In.
Speaker 1: Other banking news, HSBC says proposals this week from its
Speaker 1: largest shareholder, ping An Insurance would destroy shareholder value. Bloomberg's
Speaker 1: Rashad Salamod has details from Hong Kong.
Speaker 11: HSBC says the restructuring proposal would mean low dividends. It's
Speaker 11: in effect a shop rebuke of Pingan and its vision
Speaker 11: of unlocking value. The British Bank HSBC fully rejected the
Speaker 11: suggestion of a partial listing of its Hong Kong business,
Speaker 11: saying the plan's smack of financial engineering and that Pingan
Speaker 11: misunderstands Hi Species business. The bank reports first quarter results
Speaker 11: on the second of main holds its annual meeting three
Speaker 11: days later.
Speaker 2: Expect fireworks.
Speaker 1: Bloomberg's Rashad Salami reports ping Ann currently owns eight percent
Speaker 1: of HSBC stock.
Speaker 2: Forty six degrees in New York, It's going to be
Speaker 2: partly sunny today with hies in the upper sixties. We'll
Speaker 2: get down to the low fifties tonight under a clear
Speaker 2: too partly cloudy. Sky timed out a look at some
Speaker 2: of the other stories making news in New York and
Speaker 2: around the world with Bloomberg's Michael bar Good morning, Michael.
Speaker 3: Good morning, Nathan. Police say an attempt at traffic stop
Speaker 3: turn into a chase through Midtown Manhattan. According to the NYPD,
Speaker 3: the driver hit one police officer in the head, evading
Speaker 3: three police stops, speeding down sidewalks, ramming into a fire hydrant,
Speaker 3: and slammed into a restaurant street shack. This woman says
Speaker 3: the driver just missed her by inches while she was
Speaker 3: crossing the street with a walker.
Speaker 2: I was scared to death. The car kept speeding down
Speaker 2: the street.
Speaker 9: I was crossing from this side to that side.
Speaker 2: The car I had the.
Speaker 10: Light with his piece of wheel hit me down here
Speaker 10: and the bumper came flying off.
Speaker 3: The car eventually came to a stop. The driver managed
Speaker 3: to crawl out from behind an inflated airbag and escaped.
Speaker 3: Investigators are trying to determine the cause of this week's
Speaker 3: parking garage collapse in Lower Manhattan. One worker was killed
Speaker 3: and seven others were heard. Officials say, according to initial findings,
Speaker 3: the age of building and the number of vehicles parked
Speaker 3: on the roof deck contributed to the collapse. The eighty
Speaker 3: four year old white man who shot Ralph Yarrel, a
Speaker 3: black teenager in Kansas City, pleaded not guilty in his
Speaker 3: first court appearance Wednesday. Yarl mistakenly went to Andrew Lester's
Speaker 3: door looking for his younger brothers. Lester walked with a
Speaker 3: cane in court as he entered charges a first degree
Speaker 3: assault and armed criminal action in the shooting. Yar family
Speaker 3: attorney Lee Merritt talked about Lester.
Speaker 12: I want him to make this as easy on the
Speaker 12: family as possible, to be forthcoming about what he did,
Speaker 12: and he's going to spend the rest of his life
Speaker 12: in prison. That's an outcome that we're hoping for. All
Speaker 12: of his assets are going to become upsas sets me.
Speaker 3: While the father of Kaylin Gillis is speaking out to
Speaker 3: thirty six. Gillis was a passenger in a car with
Speaker 3: three friends Saturday night, all looking for another friend's house
Speaker 3: in a rural area of Hebron, New York, when they
Speaker 3: mistakenly pulled into sixty five year old Kevin Monahan's driveway.
Speaker 3: Police say the friends never got out of the car,
Speaker 3: but Monahan opened fire from his porch, striking the twenty
Speaker 3: year old Kaylen's father, Andrew Gillis.
Speaker 8: She had hopes and dreams of becoming a marine biologist
Speaker 8: or a veterinarian.
Speaker 4: She loved animals and this man took that away from us.
Speaker 3: And a Texas cheerleader remains in the ICU after two
Speaker 3: cheerleaders were shot after one of them mistakenly tried to
Speaker 3: enter the wrong car after practice. Global News twenty four
Speaker 3: hours a day, powered by more than twenty seven hundred
Speaker 3: journalist and analysts in over one hundred twenty countries. On
Speaker 3: Michael Barr, This is Bloomberg.
Speaker 2: Nathan Michael. Time now for our Bloomberg Sports Uptake. Good morning,
Speaker 2: John Stanshawer.
Speaker 4: Good morning, Nathan Is. Yankees Angels series at the Stadium.
Speaker 4: Build is the Battle of the MVPs. Aaron Judge against
Speaker 4: Shoe a Otani, who on Tuesday hit a two run
Speaker 4: homer before the Yankees recorded in out. So last night,
Speaker 4: Judge hit a two run homer before the Angels recorded
Speaker 4: it out. It came after Judge making a remarkable juggling
Speaker 4: catch to take another first ending homer away from Otani.
Speaker 4: Game one tennings, the Yanks scored on a Glabor Tortis
Speaker 4: sack fly. They won three to two, and if they
Speaker 4: went today at four o'clock, they will have still not yet.
Speaker 2: Lost a series.
Speaker 4: The Mets won the series in LA. They beat the
Speaker 4: Dodgers five to three, despite Max Scherzer's ejection after the
Speaker 4: third inning thrown out first sticky stuff, an accusation.
Speaker 13: Shuzer denied, you sweating rosin your hands sticky. But I
Speaker 13: don't get how I get ejected when I'm in front
Speaker 13: of MLB officials doing exactly exactly what you want and
Speaker 13: being deemed my hands too sticky when I'm using legal substance.
Speaker 2: I do not understand that bullpen did the job.
Speaker 4: After shurs Or left, Brandon Imo had a two one
Speaker 4: Humber Marcana two on double. Mets visit the Giants tonight,
Speaker 4: Stanley cuff welloffs. The Islanders were down two nothing and
Speaker 4: then up three to two Hurricane scored five minutes into overtime,
Speaker 4: won four to three to take a two to nothing
Speaker 4: series leads. Florida surprisingly won Game two in Boston. Home
Speaker 4: wins for Dallas and Edmonton. All those series are now
Speaker 4: tied to one. The battle for the Hudson continues.
Speaker 3: Tonight.
Speaker 4: Rangers, having one game one, play Game two with the
Speaker 4: Devils Nets are down two nothing.
Speaker 2: They'll host the Sixers in Game three.
Speaker 4: NBA home wins from Milwaukee, Memphis.
Speaker 2: And Denver Tiger Woods.
Speaker 4: Last scene limping at the Masters will have fusion surgery
Speaker 4: on his foot. Issues to me from that car accident,
Speaker 4: Don Stashedward.
Speaker 2: Bloomberg Sports.
Speaker 5: Live from coast to coast, from New York to San Francisco,
Speaker 5: Boston to Washington, d C. Nationwide on SIRIUSXAM, the Bloomberg
Speaker 5: Business app in Bloomberg dot com. This is Bloomberg Day Break.
Speaker 5: Good morning, I'm Nathan Hager.
Speaker 2: The debate over the debt ceiling in Washington now includes
Speaker 2: a bill to debate House Speaker Kevin McCarthy's proposing to
Speaker 2: raise the nation's borrowing limit for about a year while
Speaker 2: cutting government spending two last year's levels. The bill would
Speaker 2: also add new work requirements to government benefits like Medicaid
Speaker 2: and food stamps.
Speaker 6: Right now, there are more job openings than people looking
Speaker 6: for work. Our plan ensures adults without dependence earn a
Speaker 6: paycheck and learn new skills.
Speaker 2: And that was Speaker McCarthy unveiling the three hundred and
Speaker 2: twenty page bill yesterday. And for more we're joined now
Speaker 2: by Julie Norman, co director of the Center for US
Speaker 2: Politics at University College London. Juliet's always great to speak
Speaker 2: with you, and we've heard Democrats, including President Biden Warren
Speaker 2: in the past that Republicans would aim at benefit cuts
Speaker 2: as part of a debt sealing increase debate. Is this
Speaker 2: bill just dead on arrival?
Speaker 14: Well, Nathan, it will be interesting to see what happens
Speaker 14: with the bill itself, because it'll be hard for McCarthy
Speaker 14: even to get all of his own caucus to vote
Speaker 14: unanimously on this to get it through the House. Even
Speaker 14: if it gets through the House, Democrats have been clear
Speaker 14: it's not going to get through the Senate, and Biden
Speaker 14: has said obviously he's going to be to it. So
Speaker 14: in terms of legislation, it's sort of dead in the water,
Speaker 14: as you said, But what McCarthy is hoping is that
Speaker 14: this will push Biden to negotiate on the debt ceiling,
Speaker 14: at least have something down on paper to start working
Speaker 14: with and to get the two talking to see what
Speaker 14: they can do before June or before a default.
Speaker 2: Now, are you seeing any signs that this could spur
Speaker 2: President Biden to negotiate because his position at this point
Speaker 2: has been he wants to clean debt ceiling increase and
Speaker 2: any negotiations on spending need to be left of the
Speaker 2: budget process.
Speaker 14: Well, that's exactly right for Biden and for the administration.
Speaker 14: It's an idea of principle as well, this idea that
Speaker 14: we don't barter over raising the debt ceiling. This should
Speaker 14: just be something that is a clean deal by Congress
Speaker 14: that doesn't require all these negotiations and back dealings over
Speaker 14: and over again. And then there's also the details of
Speaker 14: this as well. You know, Biden is not looking to
Speaker 14: join on with McCarthy and Republicans in cutting federal agencies
Speaker 14: and increasing work requirements or going along with any other
Speaker 14: the measures here. So there's the details, but also just
Speaker 14: the larger principle at play.
Speaker 2: Yeah, we should talk a little bit more about these
Speaker 2: details as well, because, as you mentioned, there is that
Speaker 2: difficulty for Speaker McCarthy just to keep his own caucus
Speaker 2: rallied around this bill. He's only got a four seat
Speaker 2: majority in the House. What's the potential that a certain
Speaker 2: number of Republicans don't even support this offer.
Speaker 14: Yeah, it's going to be really tricky, and we've seen
Speaker 14: that already in how long it's taken McCarthy even just
Speaker 14: to cobble together this package. And even as this is
Speaker 14: on the table, I understand that the House freed maccawk
Speaker 14: is still trying to add on different measures that they
Speaker 14: want to see on it, which may alienate some moderates.
Speaker 14: So right now it's a somewhat loosely defined package of
Speaker 14: about one hundred and thirty billion dollars of cuts in
Speaker 14: federal spending, but again not clear on which agencies or
Speaker 14: programs that would affect, particularly new work requirements on welfare programs,
Speaker 14: blocking the student debt program, that cancelation program that Biden wants,
Speaker 14: which the court may block anyway, and then a nu
Speaker 14: most of their attack ons for permits for oil and gas.
Speaker 14: So there's a lot in this. Again, I think it'll
Speaker 14: be hard even for Mcartha to get it over the line.
Speaker 14: But again it's very vague, and I think that's where
Speaker 14: he's maybe hoping he can get people to sign on
Speaker 14: because the details aren't all fleshed out.
Speaker 2: Well, given that we don't have those of fully fleshed
Speaker 2: out details, do you see a bigger risk that moderate
Speaker 2: Republicans won't support this or some of the Freedom Caucus members.
Speaker 14: It might be a little bit of both. I mean,
Speaker 14: as you know, is kind of famously talked about now
Speaker 14: the five families, so to speak. In the Caucus. There's
Speaker 14: a lot of different interests at play. It's not even
Speaker 14: just two sides that McCarthy is trying to balance between.
Speaker 14: And because every vote is pretty much needed, there's a
Speaker 14: lot of leverage for any one member or any small
Speaker 14: group of members to really push for things for their district.
Speaker 14: So I think there's going to be a lot of
Speaker 14: deal making, so to speak, to try and get those
Speaker 14: votes for McCarthy in these coming days. But again, at
Speaker 14: the end of the day, the vote count doesn't really matter.
Speaker 14: It's not really about the idea this would become legislation.
Speaker 14: It's more is this a package that could start some
Speaker 14: kind of negotiations and I think that back and forth
Speaker 14: is going to continue a bit as the political brinkmanship
Speaker 14: builds up.
Speaker 2: Got about thirty seconds left here. Julie wall Street's been
Speaker 2: pretty sanguine about the idea that the US would default
Speaker 2: on its step up to now. Is this something that
Speaker 2: wall Street needs to be concerned about?
Speaker 14: Well, Nathan, it's a tough one because we hear this
Speaker 14: the same scenario happen time after time again, and it
Speaker 14: becomes a little bit like the Boy who Cried Wolf.
Speaker 14: It seems like it's always going to get fixed up
Speaker 14: the last minute, one way or the other. And as
Speaker 14: hopeful as we are about that, just the stakes are
Speaker 14: so big and so real that you do have to
Speaker 14: take it seriously and we do have to be prepared
Speaker 14: for any kind of turns this might take, especially when
Speaker 14: politics are so volatile.
Speaker 2: This is Bloomberg Daybreak Today, your morning brief on the
Speaker 2: stories making news from Wall Street to Washington and beyond.
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