WEBVTT - Debt Ceiling Battle; Tesla Tumbles

0:00:01.880 --> 0:00:05.400
<v Speaker 1>From the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak

0:00:05.440 --> 0:00:07.039
<v Speaker 1>for Thursday, April twentieth.

0:00:07.120 --> 0:00:10.200
<v Speaker 2>Coming up today, House Republicans unveil their plan for the

0:00:10.240 --> 0:00:10.879
<v Speaker 2>debt ceiling.

0:00:11.280 --> 0:00:14.320
<v Speaker 1>The legal fight over abortion goes into overtime at the

0:00:14.360 --> 0:00:15.240
<v Speaker 1>Supreme Court.

0:00:15.400 --> 0:00:19.239
<v Speaker 2>Tesla's shares fall as Elon Musk signals more price cuts ahead.

0:00:19.680 --> 0:00:20.920
<v Speaker 2>And we get another.

0:00:20.640 --> 0:00:23.239
<v Speaker 1>Read on the banking industry as a slew of regional

0:00:23.320 --> 0:00:24.560
<v Speaker 1>lenders report earnings.

0:00:24.760 --> 0:00:27.560
<v Speaker 3>The wild car chase in Midtown Manhattan has left an

0:00:27.560 --> 0:00:30.520
<v Speaker 3>officer injured, plus an elderly white man accused of shooting

0:00:30.520 --> 0:00:32.920
<v Speaker 3>of black teen was in a Kansas City court. I'm

0:00:32.960 --> 0:00:34.640
<v Speaker 3>Michael bar Moore Ahead, I'm.

0:00:34.560 --> 0:00:35.680
<v Speaker 2>John staf Sharon's Wards.

0:00:35.720 --> 0:00:39.000
<v Speaker 4>The Mets beat the Dodgers despite Max Scherzer's ejection. Yankees

0:00:39.040 --> 0:00:41.360
<v Speaker 4>a walk off went on the Angels. The Islanders lost

0:00:41.360 --> 0:00:42.879
<v Speaker 4>again at Carolina.

0:00:43.680 --> 0:00:47.120
<v Speaker 5>That's all straight Ahead on Bloomberg day Break, the business

0:00:47.120 --> 0:00:49.600
<v Speaker 5>news you need to sturn your day in just one

0:00:49.720 --> 0:00:54.200
<v Speaker 5>fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

0:00:54.240 --> 0:00:56.880
<v Speaker 5>Business Appen everywhere you get your podcasts.

0:01:00.000 --> 0:01:03.080
<v Speaker 2>Good morning, I'm Nathan Hager and I'm Amy Morris. Here.

0:01:03.160 --> 0:01:05.080
<v Speaker 1>Are the stories we're following today.

0:01:05.720 --> 0:01:08.640
<v Speaker 2>We begin with an offer to address the national debt.

0:01:08.959 --> 0:01:11.480
<v Speaker 2>House Speaker Kevin McCarthy is proposing a bill that would

0:01:11.520 --> 0:01:14.160
<v Speaker 2>add one and a half trillion dollars to the debt ceiling,

0:01:14.560 --> 0:01:17.800
<v Speaker 2>enough to avert a default until March of next year.

0:01:18.240 --> 0:01:20.720
<v Speaker 2>The bill would also cut spending by about one hundred

0:01:20.720 --> 0:01:23.600
<v Speaker 2>and thirty billion dollars, and McCarthy says that's not all.

0:01:24.000 --> 0:01:28.800
<v Speaker 6>Our bill would actually clawback billions and dollars of unspent

0:01:28.959 --> 0:01:30.200
<v Speaker 6>COVID money that.

0:01:30.280 --> 0:01:32.600
<v Speaker 2>Has set for the last two years.

0:01:33.760 --> 0:01:38.480
<v Speaker 6>The American people are tired of politicians who use COVID

0:01:38.800 --> 0:01:42.720
<v Speaker 6>as an excuse for more extreme inflationary spending.

0:01:43.040 --> 0:01:46.760
<v Speaker 2>But President Biden is already rejecting House Speaker McCarthy's plan.

0:01:46.959 --> 0:01:49.560
<v Speaker 7>Magar, Republic and Congress are threatened to default on the

0:01:49.640 --> 0:01:52.440
<v Speaker 7>national debt, the debt that took two hundred and thirty

0:01:52.480 --> 0:01:57.800
<v Speaker 7>years to accumulate overall. Overall, unless we do what they say,

0:01:57.840 --> 0:02:00.400
<v Speaker 7>they say they're going to default unless I agree to

0:02:00.440 --> 0:02:02.120
<v Speaker 7>all these wacko notions they have.

0:02:02.920 --> 0:02:05.640
<v Speaker 2>Presidents spoke at a union hall outside Washington. Now it's

0:02:05.720 --> 0:02:09.040
<v Speaker 2>unclear if McCarthy's plan has enough support from fellow Republicans.

0:02:09.320 --> 0:02:11.079
<v Speaker 2>A vote on the bill could come as soon as

0:02:11.120 --> 0:02:11.680
<v Speaker 2>next week.

0:02:12.240 --> 0:02:15.760
<v Speaker 1>Meantime, Nathan spending on Ukraine remains in focus. The Biden

0:02:15.760 --> 0:02:19.280
<v Speaker 1>administration has announced another package of weapons and ammunition support,

0:02:19.639 --> 0:02:22.120
<v Speaker 1>valued at up to three hundred and twenty five million dollars.

0:02:22.400 --> 0:02:25.959
<v Speaker 1>It will include AMMO for rockets and anti armor systems

0:02:26.040 --> 0:02:29.240
<v Speaker 1>and more artillery rounds. The munitions will be taken from

0:02:29.360 --> 0:02:32.440
<v Speaker 1>US dogpiles. It is the thirty sixth such drawdown.

0:02:32.680 --> 0:02:35.320
<v Speaker 2>Elsewarn Washington Amy, the Supreme Court has made another move

0:02:35.360 --> 0:02:38.360
<v Speaker 2>on reproductive rights. The High Court is allowing access to

0:02:38.440 --> 0:02:42.240
<v Speaker 2>a widely used abortion pill until at least tomorrow. Justices

0:02:42.240 --> 0:02:45.000
<v Speaker 2>are still considering whether to allow longer restrictions on the

0:02:45.080 --> 0:02:48.160
<v Speaker 2>drug Mifa pristone to take effect. Scott Carr has more

0:02:48.200 --> 0:02:50.640
<v Speaker 2>from our Bloomberg ninety nine one newsroom in Washington.

0:02:50.960 --> 0:02:53.880
<v Speaker 8>The Court pushed back at original Wednesday deadline to decide

0:02:53.880 --> 0:02:56.919
<v Speaker 8>whether to allow a Texas judge's order restricting the sale

0:02:56.960 --> 0:02:59.519
<v Speaker 8>and use of Mifa pristone. While a legal challenge to

0:02:59.560 --> 0:03:03.800
<v Speaker 8>the Medicaidation's FDA approval over twenty years ago continues. The

0:03:03.840 --> 0:03:06.919
<v Speaker 8>Biden administration and the drugs maker Danko Labs in New

0:03:07.000 --> 0:03:09.280
<v Speaker 8>York want the High Court to reject the ruling out

0:03:09.280 --> 0:03:11.519
<v Speaker 8>of Texas, at least as long as the case makes

0:03:11.560 --> 0:03:14.160
<v Speaker 8>its way through the courts. The additional time could be

0:03:14.200 --> 0:03:16.160
<v Speaker 8>part of an effort to craft an order that has

0:03:16.200 --> 0:03:19.079
<v Speaker 8>broad support among the justices, and one or more of

0:03:19.120 --> 0:03:21.760
<v Speaker 8>them might be writing a separate opinion. They're now expected

0:03:21.800 --> 0:03:24.680
<v Speaker 8>to act by Friday night. In Washington, I'm Scott Carr,

0:03:24.720 --> 0:03:25.840
<v Speaker 8>Bloomberg Daybreak.

0:03:26.080 --> 0:03:29.200
<v Speaker 1>All right, thank you, Scott. In Texas today, SpaceX hopes

0:03:29.240 --> 0:03:32.760
<v Speaker 1>to launch its next generation starship rocket this morning. A

0:03:32.840 --> 0:03:36.480
<v Speaker 1>problem with pressurization resulted in the previous launch being scrubbed.

0:03:36.640 --> 0:03:38.680
<v Speaker 1>The test flight as seen as a key step towards

0:03:38.720 --> 0:03:41.920
<v Speaker 1>sending humans to the Moon and Mars Corse. Elon Musk

0:03:42.120 --> 0:03:44.200
<v Speaker 1>is a CEO of SpaceX.

0:03:44.280 --> 0:03:48.080
<v Speaker 2>Amy. His other company is in the spotlight as well, Tesla.

0:03:48.320 --> 0:03:50.560
<v Speaker 2>Its shares are down seven and a half percent in

0:03:50.640 --> 0:03:54.240
<v Speaker 2>early trading after profit missed and operating margins came in

0:03:54.480 --> 0:03:56.960
<v Speaker 2>just above eleven percent in the first quarter, down from

0:03:57.040 --> 0:04:00.600
<v Speaker 2>nineteen percent last year. Musk is signaling Tesla will continue

0:04:00.640 --> 0:04:02.360
<v Speaker 2>cutting prices to stoke demand.

0:04:02.800 --> 0:04:04.800
<v Speaker 9>We really don't think about competitors that much. We're the

0:04:04.840 --> 0:04:08.240
<v Speaker 9>only ones making cars that technically we could sell for

0:04:08.760 --> 0:04:13.840
<v Speaker 9>zero profit for now and then yield actually tremendous economics

0:04:13.880 --> 0:04:15.480
<v Speaker 9>in the future through autonomy.

0:04:15.720 --> 0:04:18.599
<v Speaker 2>Elon Musk says the best scenario could see Tesla produce

0:04:18.600 --> 0:04:20.480
<v Speaker 2>as many as two million vehicles this.

0:04:20.560 --> 0:04:23.880
<v Speaker 1>Year, and the parade of earnings continues. This morning, we've

0:04:23.880 --> 0:04:26.800
<v Speaker 1>heard from the big banks. Now the regional lenders report

0:04:26.960 --> 0:04:29.920
<v Speaker 1>they're in the spotlight after the collapse of Silicon Valley Bank.

0:04:30.200 --> 0:04:33.640
<v Speaker 1>More in this live report from Bloomberg's John Tucker and Amy.

0:04:33.680 --> 0:04:36.719
<v Speaker 10>The results will offer investors to insight into the extent

0:04:36.760 --> 0:04:39.479
<v Speaker 10>of the damage from the March banking panic. Under the

0:04:39.520 --> 0:04:43.479
<v Speaker 10>microscope will be banks deposits, and the question everybody wants

0:04:43.560 --> 0:04:46.640
<v Speaker 10>to know is whether spooked customers dump their accounts and

0:04:46.760 --> 0:04:49.840
<v Speaker 10>transfer their cash to the perceived safety of the big banks.

0:04:50.040 --> 0:04:53.440
<v Speaker 10>The results yesterday from Western Lines Bank Or offered some hope.

0:04:53.600 --> 0:04:58.160
<v Speaker 10>That company said deponsits rose two billion dollars. Those shares surged.

0:04:58.480 --> 0:05:02.640
<v Speaker 10>The regional banks reporting today fifth Or Bankcorp, Huntington Bank Shares,

0:05:03.040 --> 0:05:07.120
<v Speaker 10>keycorek America, and Truest Financial. Wallstreet expects to see some

0:05:07.240 --> 0:05:11.160
<v Speaker 10>modern earnings growth driven by increases in net interest to income.

0:05:11.600 --> 0:05:14.080
<v Speaker 10>Live in New York. I'm John Tucker, Bloomberg Daybreak.

0:05:14.160 --> 0:05:16.799
<v Speaker 2>Thank you John. New York FED President John Williams says

0:05:16.839 --> 0:05:19.800
<v Speaker 2>the recent banking termol may make it harder for households

0:05:19.800 --> 0:05:22.840
<v Speaker 2>and businesses to get credit. Williams calls the banking system

0:05:22.960 --> 0:05:26.159
<v Speaker 2>sound and resilient, but he says recent developments will likely

0:05:26.240 --> 0:05:29.120
<v Speaker 2>lead to tighter credit conditions and that will affect spending

0:05:29.600 --> 0:05:30.080
<v Speaker 2>and In.

0:05:30.040 --> 0:05:33.640
<v Speaker 1>Other banking news, HSBC says proposals this week from its

0:05:33.760 --> 0:05:39.080
<v Speaker 1>largest shareholder, ping An Insurance would destroy shareholder value. Bloomberg's

0:05:39.120 --> 0:05:41.720
<v Speaker 1>Rashad Salamod has details from Hong Kong.

0:05:41.839 --> 0:05:45.960
<v Speaker 11>HSBC says the restructuring proposal would mean low dividends. It's

0:05:45.960 --> 0:05:48.520
<v Speaker 11>in effect a shop rebuke of Pingan and its vision

0:05:48.560 --> 0:05:52.200
<v Speaker 11>of unlocking value. The British Bank HSBC fully rejected the

0:05:52.240 --> 0:05:54.919
<v Speaker 11>suggestion of a partial listing of its Hong Kong business,

0:05:55.240 --> 0:05:58.720
<v Speaker 11>saying the plan's smack of financial engineering and that Pingan

0:05:58.839 --> 0:06:03.200
<v Speaker 11>misunderstands Hi Species business. The bank reports first quarter results

0:06:03.240 --> 0:06:05.880
<v Speaker 11>on the second of main holds its annual meeting three

0:06:05.960 --> 0:06:06.559
<v Speaker 11>days later.

0:06:07.080 --> 0:06:08.240
<v Speaker 2>Expect fireworks.

0:06:09.680 --> 0:06:13.680
<v Speaker 1>Bloomberg's Rashad Salami reports ping Ann currently owns eight percent

0:06:13.720 --> 0:06:15.159
<v Speaker 1>of HSBC stock.

0:06:19.200 --> 0:06:20.919
<v Speaker 2>Forty six degrees in New York, It's going to be

0:06:20.920 --> 0:06:23.000
<v Speaker 2>partly sunny today with hies in the upper sixties. We'll

0:06:23.000 --> 0:06:25.039
<v Speaker 2>get down to the low fifties tonight under a clear

0:06:25.080 --> 0:06:27.320
<v Speaker 2>too partly cloudy. Sky timed out a look at some

0:06:27.320 --> 0:06:29.120
<v Speaker 2>of the other stories making news in New York and

0:06:29.200 --> 0:06:32.560
<v Speaker 2>around the world with Bloomberg's Michael bar Good morning, Michael.

0:06:32.360 --> 0:06:35.080
<v Speaker 3>Good morning, Nathan. Police say an attempt at traffic stop

0:06:35.160 --> 0:06:39.480
<v Speaker 3>turn into a chase through Midtown Manhattan. According to the NYPD,

0:06:39.640 --> 0:06:42.839
<v Speaker 3>the driver hit one police officer in the head, evading

0:06:42.880 --> 0:06:47.800
<v Speaker 3>three police stops, speeding down sidewalks, ramming into a fire hydrant,

0:06:48.080 --> 0:06:51.680
<v Speaker 3>and slammed into a restaurant street shack. This woman says

0:06:51.720 --> 0:06:54.800
<v Speaker 3>the driver just missed her by inches while she was

0:06:54.839 --> 0:06:56.240
<v Speaker 3>crossing the street with a walker.

0:06:56.520 --> 0:06:58.960
<v Speaker 2>I was scared to death. The car kept speeding down

0:06:59.040 --> 0:06:59.520
<v Speaker 2>the street.

0:07:00.040 --> 0:07:03.640
<v Speaker 9>I was crossing from this side to that side.

0:07:03.880 --> 0:07:05.680
<v Speaker 2>The car I had the.

0:07:05.760 --> 0:07:09.000
<v Speaker 10>Light with his piece of wheel hit me down here

0:07:09.560 --> 0:07:11.280
<v Speaker 10>and the bumper came flying off.

0:07:11.720 --> 0:07:14.360
<v Speaker 3>The car eventually came to a stop. The driver managed

0:07:14.360 --> 0:07:17.840
<v Speaker 3>to crawl out from behind an inflated airbag and escaped.

0:07:18.360 --> 0:07:21.040
<v Speaker 3>Investigators are trying to determine the cause of this week's

0:07:21.080 --> 0:07:24.559
<v Speaker 3>parking garage collapse in Lower Manhattan. One worker was killed

0:07:24.560 --> 0:07:28.520
<v Speaker 3>and seven others were heard. Officials say, according to initial findings,

0:07:28.560 --> 0:07:31.320
<v Speaker 3>the age of building and the number of vehicles parked

0:07:31.360 --> 0:07:34.360
<v Speaker 3>on the roof deck contributed to the collapse. The eighty

0:07:34.400 --> 0:07:37.360
<v Speaker 3>four year old white man who shot Ralph Yarrel, a

0:07:37.400 --> 0:07:40.880
<v Speaker 3>black teenager in Kansas City, pleaded not guilty in his

0:07:40.960 --> 0:07:45.280
<v Speaker 3>first court appearance Wednesday. Yarl mistakenly went to Andrew Lester's

0:07:45.280 --> 0:07:48.560
<v Speaker 3>door looking for his younger brothers. Lester walked with a

0:07:48.640 --> 0:07:51.559
<v Speaker 3>cane in court as he entered charges a first degree

0:07:51.600 --> 0:07:55.000
<v Speaker 3>assault and armed criminal action in the shooting. Yar family

0:07:55.000 --> 0:07:56.760
<v Speaker 3>attorney Lee Merritt talked about Lester.

0:07:57.120 --> 0:07:58.920
<v Speaker 12>I want him to make this as easy on the

0:07:58.920 --> 0:08:02.160
<v Speaker 12>family as possible, to be forthcoming about what he did,

0:08:03.120 --> 0:08:04.640
<v Speaker 12>and he's going to spend the rest of his life

0:08:04.680 --> 0:08:08.080
<v Speaker 12>in prison. That's an outcome that we're hoping for. All

0:08:08.120 --> 0:08:10.400
<v Speaker 12>of his assets are going to become upsas sets me.

0:08:10.520 --> 0:08:12.960
<v Speaker 3>While the father of Kaylin Gillis is speaking out to

0:08:13.040 --> 0:08:15.240
<v Speaker 3>thirty six. Gillis was a passenger in a car with

0:08:15.280 --> 0:08:19.280
<v Speaker 3>three friends Saturday night, all looking for another friend's house

0:08:19.320 --> 0:08:22.040
<v Speaker 3>in a rural area of Hebron, New York, when they

0:08:22.040 --> 0:08:25.600
<v Speaker 3>mistakenly pulled into sixty five year old Kevin Monahan's driveway.

0:08:25.960 --> 0:08:28.080
<v Speaker 3>Police say the friends never got out of the car,

0:08:28.120 --> 0:08:31.160
<v Speaker 3>but Monahan opened fire from his porch, striking the twenty

0:08:31.240 --> 0:08:33.600
<v Speaker 3>year old Kaylen's father, Andrew Gillis.

0:08:33.720 --> 0:08:37.920
<v Speaker 8>She had hopes and dreams of becoming a marine biologist

0:08:38.400 --> 0:08:39.160
<v Speaker 8>or a veterinarian.

0:08:39.200 --> 0:08:43.480
<v Speaker 4>She loved animals and this man took that away from us.

0:08:43.840 --> 0:08:47.240
<v Speaker 3>And a Texas cheerleader remains in the ICU after two

0:08:47.320 --> 0:08:49.960
<v Speaker 3>cheerleaders were shot after one of them mistakenly tried to

0:08:50.120 --> 0:08:53.480
<v Speaker 3>enter the wrong car after practice. Global News twenty four

0:08:53.480 --> 0:08:55.680
<v Speaker 3>hours a day, powered by more than twenty seven hundred

0:08:55.760 --> 0:08:58.240
<v Speaker 3>journalist and analysts in over one hundred twenty countries. On

0:08:58.320 --> 0:08:59.400
<v Speaker 3>Michael Barr, This is Bloomberg.

0:08:59.480 --> 0:09:07.240
<v Speaker 2>Nathan Michael. Time now for our Bloomberg Sports Uptake. Good morning,

0:09:07.280 --> 0:09:08.640
<v Speaker 2>John Stanshawer.

0:09:08.120 --> 0:09:11.040
<v Speaker 4>Good morning, Nathan Is. Yankees Angels series at the Stadium.

0:09:11.040 --> 0:09:13.959
<v Speaker 4>Build is the Battle of the MVPs. Aaron Judge against

0:09:13.960 --> 0:09:16.600
<v Speaker 4>Shoe a Otani, who on Tuesday hit a two run

0:09:16.600 --> 0:09:19.439
<v Speaker 4>homer before the Yankees recorded in out. So last night,

0:09:19.559 --> 0:09:22.719
<v Speaker 4>Judge hit a two run homer before the Angels recorded

0:09:22.760 --> 0:09:25.560
<v Speaker 4>it out. It came after Judge making a remarkable juggling

0:09:25.640 --> 0:09:29.160
<v Speaker 4>catch to take another first ending homer away from Otani.

0:09:29.520 --> 0:09:31.720
<v Speaker 4>Game one tennings, the Yanks scored on a Glabor Tortis

0:09:31.760 --> 0:09:33.440
<v Speaker 4>sack fly. They won three to two, and if they

0:09:33.440 --> 0:09:37.559
<v Speaker 4>went today at four o'clock, they will have still not yet.

0:09:37.360 --> 0:09:38.040
<v Speaker 2>Lost a series.

0:09:38.040 --> 0:09:39.680
<v Speaker 4>The Mets won the series in LA. They beat the

0:09:39.679 --> 0:09:43.760
<v Speaker 4>Dodgers five to three, despite Max Scherzer's ejection after the

0:09:43.760 --> 0:09:47.479
<v Speaker 4>third inning thrown out first sticky stuff, an accusation.

0:09:47.760 --> 0:09:52.760
<v Speaker 13>Shuzer denied, you sweating rosin your hands sticky. But I

0:09:52.760 --> 0:09:56.079
<v Speaker 13>don't get how I get ejected when I'm in front

0:09:56.120 --> 0:10:00.600
<v Speaker 13>of MLB officials doing exactly exactly what you want and

0:10:00.720 --> 0:10:03.600
<v Speaker 13>being deemed my hands too sticky when I'm using legal substance.

0:10:03.679 --> 0:10:05.760
<v Speaker 2>I do not understand that bullpen did the job.

0:10:05.840 --> 0:10:07.800
<v Speaker 4>After shurs Or left, Brandon Imo had a two one

0:10:07.840 --> 0:10:10.760
<v Speaker 4>Humber Marcana two on double. Mets visit the Giants tonight,

0:10:10.840 --> 0:10:13.160
<v Speaker 4>Stanley cuff welloffs. The Islanders were down two nothing and

0:10:13.200 --> 0:10:16.880
<v Speaker 4>then up three to two Hurricane scored five minutes into overtime,

0:10:16.960 --> 0:10:18.480
<v Speaker 4>won four to three to take a two to nothing

0:10:18.559 --> 0:10:22.559
<v Speaker 4>series leads. Florida surprisingly won Game two in Boston. Home

0:10:22.600 --> 0:10:25.079
<v Speaker 4>wins for Dallas and Edmonton. All those series are now

0:10:25.120 --> 0:10:27.160
<v Speaker 4>tied to one. The battle for the Hudson continues.

0:10:27.160 --> 0:10:27.480
<v Speaker 3>Tonight.

0:10:27.920 --> 0:10:31.040
<v Speaker 4>Rangers, having one game one, play Game two with the

0:10:31.120 --> 0:10:32.839
<v Speaker 4>Devils Nets are down two nothing.

0:10:32.880 --> 0:10:34.440
<v Speaker 2>They'll host the Sixers in Game three.

0:10:34.520 --> 0:10:36.840
<v Speaker 4>NBA home wins from Milwaukee, Memphis.

0:10:36.400 --> 0:10:37.760
<v Speaker 2>And Denver Tiger Woods.

0:10:37.840 --> 0:10:41.120
<v Speaker 4>Last scene limping at the Masters will have fusion surgery

0:10:41.160 --> 0:10:43.480
<v Speaker 4>on his foot. Issues to me from that car accident,

0:10:43.720 --> 0:10:44.520
<v Speaker 4>Don Stashedward.

0:10:44.559 --> 0:10:45.920
<v Speaker 2>Bloomberg Sports.

0:10:47.920 --> 0:10:51.320
<v Speaker 5>Live from coast to coast, from New York to San Francisco,

0:10:51.520 --> 0:10:55.960
<v Speaker 5>Boston to Washington, d C. Nationwide on SIRIUSXAM, the Bloomberg

0:10:56.000 --> 0:11:00.160
<v Speaker 5>Business app in Bloomberg dot com. This is Bloomberg Day Break.

0:11:01.320 --> 0:11:02.600
<v Speaker 5>Good morning, I'm Nathan Hager.

0:11:02.720 --> 0:11:05.640
<v Speaker 2>The debate over the debt ceiling in Washington now includes

0:11:05.720 --> 0:11:08.920
<v Speaker 2>a bill to debate House Speaker Kevin McCarthy's proposing to

0:11:09.040 --> 0:11:12.120
<v Speaker 2>raise the nation's borrowing limit for about a year while

0:11:12.120 --> 0:11:15.920
<v Speaker 2>cutting government spending two last year's levels. The bill would

0:11:15.920 --> 0:11:19.679
<v Speaker 2>also add new work requirements to government benefits like Medicaid

0:11:19.720 --> 0:11:20.760
<v Speaker 2>and food stamps.

0:11:21.280 --> 0:11:24.840
<v Speaker 6>Right now, there are more job openings than people looking

0:11:24.920 --> 0:11:31.560
<v Speaker 6>for work. Our plan ensures adults without dependence earn a

0:11:31.600 --> 0:11:33.600
<v Speaker 6>paycheck and learn new skills.

0:11:34.120 --> 0:11:36.559
<v Speaker 2>And that was Speaker McCarthy unveiling the three hundred and

0:11:36.600 --> 0:11:40.240
<v Speaker 2>twenty page bill yesterday. And for more we're joined now

0:11:40.640 --> 0:11:43.160
<v Speaker 2>by Julie Norman, co director of the Center for US

0:11:43.280 --> 0:11:47.760
<v Speaker 2>Politics at University College London. Juliet's always great to speak

0:11:47.800 --> 0:11:51.440
<v Speaker 2>with you, and we've heard Democrats, including President Biden Warren

0:11:51.559 --> 0:11:56.000
<v Speaker 2>in the past that Republicans would aim at benefit cuts

0:11:56.080 --> 0:12:00.200
<v Speaker 2>as part of a debt sealing increase debate. Is this

0:12:00.280 --> 0:12:01.800
<v Speaker 2>bill just dead on arrival?

0:12:03.360 --> 0:12:05.600
<v Speaker 14>Well, Nathan, it will be interesting to see what happens

0:12:05.640 --> 0:12:08.520
<v Speaker 14>with the bill itself, because it'll be hard for McCarthy

0:12:08.600 --> 0:12:10.960
<v Speaker 14>even to get all of his own caucus to vote

0:12:11.040 --> 0:12:13.480
<v Speaker 14>unanimously on this to get it through the House. Even

0:12:13.520 --> 0:12:15.680
<v Speaker 14>if it gets through the House, Democrats have been clear

0:12:15.720 --> 0:12:17.640
<v Speaker 14>it's not going to get through the Senate, and Biden

0:12:17.679 --> 0:12:19.679
<v Speaker 14>has said obviously he's going to be to it. So

0:12:19.720 --> 0:12:22.520
<v Speaker 14>in terms of legislation, it's sort of dead in the water,

0:12:22.559 --> 0:12:25.360
<v Speaker 14>as you said, But what McCarthy is hoping is that

0:12:25.400 --> 0:12:29.480
<v Speaker 14>this will push Biden to negotiate on the debt ceiling,

0:12:29.480 --> 0:12:32.000
<v Speaker 14>at least have something down on paper to start working

0:12:32.000 --> 0:12:33.960
<v Speaker 14>with and to get the two talking to see what

0:12:34.000 --> 0:12:36.440
<v Speaker 14>they can do before June or before a default.

0:12:36.880 --> 0:12:40.079
<v Speaker 2>Now, are you seeing any signs that this could spur

0:12:40.280 --> 0:12:43.839
<v Speaker 2>President Biden to negotiate because his position at this point

0:12:43.840 --> 0:12:47.920
<v Speaker 2>has been he wants to clean debt ceiling increase and

0:12:48.400 --> 0:12:51.400
<v Speaker 2>any negotiations on spending need to be left of the

0:12:51.400 --> 0:12:52.240
<v Speaker 2>budget process.

0:12:53.040 --> 0:12:56.239
<v Speaker 14>Well, that's exactly right for Biden and for the administration.

0:12:56.559 --> 0:12:59.000
<v Speaker 14>It's an idea of principle as well, this idea that

0:12:59.040 --> 0:13:02.559
<v Speaker 14>we don't barter over raising the debt ceiling. This should

0:13:02.600 --> 0:13:06.760
<v Speaker 14>just be something that is a clean deal by Congress

0:13:06.800 --> 0:13:09.760
<v Speaker 14>that doesn't require all these negotiations and back dealings over

0:13:09.800 --> 0:13:13.320
<v Speaker 14>and over again. And then there's also the details of

0:13:13.320 --> 0:13:15.720
<v Speaker 14>this as well. You know, Biden is not looking to

0:13:16.880 --> 0:13:20.800
<v Speaker 14>join on with McCarthy and Republicans in cutting federal agencies

0:13:20.880 --> 0:13:23.760
<v Speaker 14>and increasing work requirements or going along with any other

0:13:23.800 --> 0:13:26.440
<v Speaker 14>the measures here. So there's the details, but also just

0:13:26.480 --> 0:13:27.680
<v Speaker 14>the larger principle at play.

0:13:27.920 --> 0:13:29.760
<v Speaker 2>Yeah, we should talk a little bit more about these

0:13:29.760 --> 0:13:32.400
<v Speaker 2>details as well, because, as you mentioned, there is that

0:13:32.520 --> 0:13:36.280
<v Speaker 2>difficulty for Speaker McCarthy just to keep his own caucus

0:13:36.520 --> 0:13:39.040
<v Speaker 2>rallied around this bill. He's only got a four seat

0:13:39.160 --> 0:13:44.120
<v Speaker 2>majority in the House. What's the potential that a certain

0:13:44.160 --> 0:13:47.160
<v Speaker 2>number of Republicans don't even support this offer.

0:13:47.960 --> 0:13:50.200
<v Speaker 14>Yeah, it's going to be really tricky, and we've seen

0:13:50.240 --> 0:13:52.960
<v Speaker 14>that already in how long it's taken McCarthy even just

0:13:53.000 --> 0:13:55.840
<v Speaker 14>to cobble together this package. And even as this is

0:13:55.880 --> 0:13:58.440
<v Speaker 14>on the table, I understand that the House freed maccawk

0:13:58.559 --> 0:14:01.040
<v Speaker 14>is still trying to add on different measures that they

0:14:01.120 --> 0:14:03.520
<v Speaker 14>want to see on it, which may alienate some moderates.

0:14:03.760 --> 0:14:07.080
<v Speaker 14>So right now it's a somewhat loosely defined package of

0:14:07.080 --> 0:14:10.080
<v Speaker 14>about one hundred and thirty billion dollars of cuts in

0:14:10.120 --> 0:14:13.400
<v Speaker 14>federal spending, but again not clear on which agencies or

0:14:13.440 --> 0:14:19.000
<v Speaker 14>programs that would affect, particularly new work requirements on welfare programs,

0:14:19.520 --> 0:14:24.200
<v Speaker 14>blocking the student debt program, that cancelation program that Biden wants,

0:14:24.240 --> 0:14:26.880
<v Speaker 14>which the court may block anyway, and then a nu

0:14:26.920 --> 0:14:29.560
<v Speaker 14>most of their attack ons for permits for oil and gas.

0:14:29.560 --> 0:14:32.200
<v Speaker 14>So there's a lot in this. Again, I think it'll

0:14:32.200 --> 0:14:35.040
<v Speaker 14>be hard even for Mcartha to get it over the line.

0:14:35.080 --> 0:14:37.360
<v Speaker 14>But again it's very vague, and I think that's where

0:14:37.360 --> 0:14:39.960
<v Speaker 14>he's maybe hoping he can get people to sign on

0:14:40.040 --> 0:14:41.880
<v Speaker 14>because the details aren't all fleshed out.

0:14:42.200 --> 0:14:44.720
<v Speaker 2>Well, given that we don't have those of fully fleshed

0:14:44.720 --> 0:14:47.720
<v Speaker 2>out details, do you see a bigger risk that moderate

0:14:47.760 --> 0:14:51.520
<v Speaker 2>Republicans won't support this or some of the Freedom Caucus members.

0:14:52.680 --> 0:14:54.360
<v Speaker 14>It might be a little bit of both. I mean,

0:14:54.600 --> 0:14:57.280
<v Speaker 14>as you know, is kind of famously talked about now

0:14:57.320 --> 0:14:59.560
<v Speaker 14>the five families, so to speak. In the Caucus. There's

0:14:59.600 --> 0:15:01.800
<v Speaker 14>a lot of different interests at play. It's not even

0:15:01.840 --> 0:15:04.800
<v Speaker 14>just two sides that McCarthy is trying to balance between.

0:15:05.240 --> 0:15:08.680
<v Speaker 14>And because every vote is pretty much needed, there's a

0:15:08.680 --> 0:15:10.880
<v Speaker 14>lot of leverage for any one member or any small

0:15:10.920 --> 0:15:13.520
<v Speaker 14>group of members to really push for things for their district.

0:15:13.640 --> 0:15:15.240
<v Speaker 14>So I think there's going to be a lot of

0:15:16.560 --> 0:15:18.440
<v Speaker 14>deal making, so to speak, to try and get those

0:15:18.520 --> 0:15:21.280
<v Speaker 14>votes for McCarthy in these coming days. But again, at

0:15:21.320 --> 0:15:23.600
<v Speaker 14>the end of the day, the vote count doesn't really matter.

0:15:23.680 --> 0:15:26.600
<v Speaker 14>It's not really about the idea this would become legislation.

0:15:26.680 --> 0:15:28.880
<v Speaker 14>It's more is this a package that could start some

0:15:28.960 --> 0:15:31.560
<v Speaker 14>kind of negotiations and I think that back and forth

0:15:31.600 --> 0:15:33.840
<v Speaker 14>is going to continue a bit as the political brinkmanship

0:15:33.840 --> 0:15:34.360
<v Speaker 14>builds up.

0:15:34.720 --> 0:15:37.240
<v Speaker 2>Got about thirty seconds left here. Julie wall Street's been

0:15:37.240 --> 0:15:40.240
<v Speaker 2>pretty sanguine about the idea that the US would default

0:15:40.240 --> 0:15:42.800
<v Speaker 2>on its step up to now. Is this something that

0:15:42.880 --> 0:15:44.760
<v Speaker 2>wall Street needs to be concerned about?

0:15:45.840 --> 0:15:47.920
<v Speaker 14>Well, Nathan, it's a tough one because we hear this

0:15:48.520 --> 0:15:51.280
<v Speaker 14>the same scenario happen time after time again, and it

0:15:51.360 --> 0:15:53.280
<v Speaker 14>becomes a little bit like the Boy who Cried Wolf.

0:15:53.280 --> 0:15:55.080
<v Speaker 14>It seems like it's always going to get fixed up

0:15:55.080 --> 0:15:57.200
<v Speaker 14>the last minute, one way or the other. And as

0:15:57.360 --> 0:15:59.720
<v Speaker 14>hopeful as we are about that, just the stakes are

0:15:59.760 --> 0:16:02.360
<v Speaker 14>so big and so real that you do have to

0:16:02.360 --> 0:16:04.320
<v Speaker 14>take it seriously and we do have to be prepared

0:16:04.360 --> 0:16:06.640
<v Speaker 14>for any kind of turns this might take, especially when

0:16:06.680 --> 0:16:08.000
<v Speaker 14>politics are so volatile.

0:16:09.800 --> 0:16:12.880
<v Speaker 2>This is Bloomberg Daybreak Today, your morning brief on the

0:16:12.920 --> 0:16:16.440
<v Speaker 2>stories making news from Wall Street to Washington and beyond.

0:16:16.520 --> 0:16:19.520
<v Speaker 1>Look for us on your podcast feed by six am

0:16:19.640 --> 0:16:23.840
<v Speaker 1>Eastern each morning on Apple, Spotify, and anywhere else you

0:16:23.920 --> 0:16:25.000
<v Speaker 1>get your podcasts.

0:16:25.560 --> 0:16:28.280
<v Speaker 2>You can also listen live each morning starting at five

0:16:28.320 --> 0:16:30.960
<v Speaker 2>am Wall Street time on Bloomberg eleven three to zero

0:16:30.960 --> 0:16:33.840
<v Speaker 2>in New York, Bloomberg ninety nine to one in Washington,

0:16:33.920 --> 0:16:36.800
<v Speaker 2>Bloomberg one oh six to one in Boston, and Bloomberg

0:16:36.880 --> 0:16:38.680
<v Speaker 2>ninety sixty in San Francisco.

0:16:39.320 --> 0:16:42.920
<v Speaker 1>Our flagship New York station is also available on your

0:16:43.000 --> 0:16:48.840
<v Speaker 1>Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.

0:16:48.840 --> 0:16:51.840
<v Speaker 2>Listen coast to coast on the Bloomberg Business app, serious

0:16:52.000 --> 0:16:55.960
<v Speaker 2>XM Channel one nineteen, the iHeartRadio app, and on Bloomberg

0:16:56.040 --> 0:16:58.000
<v Speaker 2>dot com. I'm Nathan Hager and.

0:16:57.960 --> 0:17:01.280
<v Speaker 1>I'm Amy Morris. Join us again and tomorrow morning for

0:17:01.480 --> 0:17:04.160
<v Speaker 1>all the news you need to start your day right

0:17:04.200 --> 0:17:05.840
<v Speaker 1>here on Bloomberg day Break