WEBVTT - Debt-Limit Optimism; Zelenskiy to Visit Hiroshima G-7 0:00:02.160 --> 0:00:05.640 From the Bloomberg Interactive Brokers Studios. This is Bloomberg day 0:00:05.640 --> 0:00:07.480 Break for Friday, May nineteenth. 0:00:07.560 --> 0:00:10.760 Coming up today, Optimism grows on both sides of the 0:00:10.800 --> 0:00:12.719 aisle on a debt deal agreement. 0:00:12.960 --> 0:00:16.680 Ukraine's President Vladimir Zelenski plans to a Tamage seven meeting 0:00:16.720 --> 0:00:17.200 in Japan. 0:00:17.600 --> 0:00:21.760 The spat between Disney and Florida Governor Ron DeSantis heats up. 0:00:21.680 --> 0:00:24.680 And on top of Wall Street, strategist says sell this 0:00:24.840 --> 0:00:25.880 recent market rally. 0:00:26.040 --> 0:00:28.760 Funeral services are today for the New York subway writer 0:00:28.840 --> 0:00:31.920 who died after a choke hold. Plus the NYPD makes 0:00:31.920 --> 0:00:34.200 a grim discovery in the search for two missing boys. 0:00:34.440 --> 0:00:36.240 I'm Michael Barr Bore Ahead. 0:00:35.960 --> 0:00:38.440 I'm John Stash, Aaron's bord Twins for the Mets and Yankees. 0:00:38.440 --> 0:00:41.280 The Nuggets again beat the Lakers the Florida Panthers one 0:00:41.360 --> 0:00:42.560 in four overtime. 0:00:43.760 --> 0:00:47.159 That's all straight Ahead on Bloomberg day Break, the business 0:00:47.200 --> 0:00:49.680 news you need to starn your day in just one 0:00:49.800 --> 0:00:54.280 fifteen minute podcast each morning on Apples, Spotify, the Bloomberg 0:00:54.320 --> 0:00:56.960 Business Appen everywhere you get your podcasts. 0:01:00.040 --> 0:01:03.080 Good morning, I'm Amy Morris and I'm Karen Moscow. Here 0:01:03.160 --> 0:01:04.880 are the stories we're following today. 0:01:05.160 --> 0:01:08.400 First House Speaker Kevin McCarthy and Senate Majority Leader Chuck 0:01:08.400 --> 0:01:12.000 Schumer are making plans for votes in the coming days 0:01:12.040 --> 0:01:14.960 on a bipartisan deal to avert a US debt default. 0:01:15.160 --> 0:01:18.200 How Speaker McCarthy says he does see a path forward. 0:01:18.880 --> 0:01:20.600 Where we were a week ago and where we are 0:01:20.640 --> 0:01:22.679 today is a much better place because of him. 0:01:22.720 --> 0:01:24.880 We've got the right people in the room discussing it 0:01:25.040 --> 0:01:27.480 in a very professional manner, with all the knowledge and 0:01:27.760 --> 0:01:29.800 all the background from all the different leaders and what 0:01:29.800 --> 0:01:30.200 they want. 0:01:30.840 --> 0:01:33.160 I know, and I can see where a deal can 0:01:33.200 --> 0:01:35.960 come together. Senator Schumer says he's hopeful. 0:01:36.160 --> 0:01:39.000 I'm also pleased that the other side has recognized the 0:01:39.000 --> 0:01:42.880 best way forward is a bipartisan piece of legislation that 0:01:42.959 --> 0:01:46.080 can secure enough votes to get through both the House 0:01:46.160 --> 0:01:46.800 and the Senate. 0:01:47.160 --> 0:01:50.200 Meanwhile, the Senate will go forward with its planned recess 0:01:50.320 --> 0:01:53.040 next week. Senator Schumer told lawmakers they need to be 0:01:53.080 --> 0:01:55.920 ready to return to Washington within twenty four hours once 0:01:55.960 --> 0:01:56.559 there's a deal. 0:01:56.920 --> 0:02:00.360 Melami. There is also optimism among others in Congress to 0:02:00.400 --> 0:02:03.400 be caught up with Arizona's Senator Kirsten Cinema. 0:02:03.520 --> 0:02:05.440 Well, the good news is that we've now got the 0:02:05.520 --> 0:02:07.600 right people in the room to have the conversation and 0:02:07.680 --> 0:02:09.920 come to an agreement. And I am beginning to feel 0:02:09.919 --> 0:02:12.480 more and more confident each day that such an agreement 0:02:12.560 --> 0:02:15.280 will occur. We've got some really good news here. One 0:02:15.480 --> 0:02:17.840 is that Kevin McCarthy has said over and over he 0:02:17.880 --> 0:02:20.400 doesn't want to have a default. His folks are in 0:02:20.440 --> 0:02:24.320 the room negotiating to prevent a default and solve this challenge. 0:02:24.400 --> 0:02:27.240 And Arizona's Senator Kirsten Cinema made the comments in an 0:02:27.280 --> 0:02:30.440 interview with Bloomberg's Joe Matthew and Kaylee Lynes. Here more 0:02:30.480 --> 0:02:31.480 of that conversation. 0:02:31.600 --> 0:02:35.040 A little later in the program, President Biden meanwhile urging 0:02:35.080 --> 0:02:38.280 negotiators to keep pursuing a dead limit deal. The President 0:02:38.320 --> 0:02:40.680 is at the G seven meeting in Japan, and we've 0:02:40.760 --> 0:02:44.679 learned that Ukraine's President Voladimir Zelinski will also travel there 0:02:44.760 --> 0:02:47.400 to join the leaders in person. We get more on 0:02:47.440 --> 0:02:50.080 that from Bloomberg Steven Engel in Hiroshima. 0:02:50.200 --> 0:02:54.120 We are learning from sources that Zelensky of Ukraine will 0:02:54.160 --> 0:02:59.000 be coming here on Sunday after a stop in Saudi Arabia. 0:02:59.080 --> 0:02:59.880 For the Arab League. 0:03:00.880 --> 0:03:03.680 He could potentially there be in the same room as 0:03:03.720 --> 0:03:07.440 Syria as asad that would be interesting, to say the 0:03:07.520 --> 0:03:10.720 least this weekend, but again he will be here at 0:03:10.720 --> 0:03:13.560 the Atomic Bomb Dome and the Peace Memorial Park just 0:03:13.600 --> 0:03:17.880 down the river here to make his case to get 0:03:17.919 --> 0:03:21.560 the G sevens perhaps give more aid for Ukraine's fight 0:03:21.560 --> 0:03:22.440 against Russia. 0:03:22.520 --> 0:03:25.639 Bloomberg, State and Angle and hiroshimasays officials have added an 0:03:25.680 --> 0:03:29.520 extra session to the summit's schedule on Sunday to accommodate 0:03:29.560 --> 0:03:30.560 Ze Lindsay's schedule. 0:03:31.000 --> 0:03:33.480 Meanwhile, Amy, the US and Taiwan have agreed on a 0:03:33.520 --> 0:03:36.520 trade initiative and a bid for even closer ties on 0:03:36.600 --> 0:03:38.840 Bloomberg's Ed Baxter has the story. 0:03:38.720 --> 0:03:41.520 This is the first tangible result under an initiative announced 0:03:41.600 --> 0:03:44.000 last year. It will do several things with a lot 0:03:44.120 --> 0:03:47.360 left to do. It will streamline customs, reduce way times 0:03:47.400 --> 0:03:50.680 for trucks and vessels, and improve regulation, but it isn't 0:03:50.680 --> 0:03:53.480 a formal free trade agreement. A dozen addressed issues like 0:03:53.560 --> 0:03:58.000 tariffs or semiconductors. This agreement was also announced just hours 0:03:58.040 --> 0:04:01.920 after the Chinese Embassy in Washington announced trade meetings between 0:04:02.000 --> 0:04:04.760 China and the US. Yet to be seen how this 0:04:04.840 --> 0:04:08.120 agreement could affect that In San Francisco, I'm at Baxter 0:04:08.200 --> 0:04:09.680 Bloomberg Daybreak. 0:04:09.520 --> 0:04:11.680 Thank you ed a bit of a political story. On 0:04:11.720 --> 0:04:15.240 a different front, Disney's high profile fight with Florida Governor 0:04:15.320 --> 0:04:18.400 Rond De Santis has taken another turn. Let's get the 0:04:18.480 --> 0:04:20.600 latest with Bloomberg's John Tucker, John. 0:04:20.600 --> 0:04:23.800 And Amy taking on Mickey Mouse and the force has 0:04:23.839 --> 0:04:26.640 its price. Disney has dropped plans for a new corporate 0:04:26.680 --> 0:04:29.480 campus in Florida. It would have brought with it two 0:04:29.520 --> 0:04:32.119 thousand workers. It was worth as much as nine hundred 0:04:32.120 --> 0:04:35.200 million dollars, and they're shutting down a luxury hotel at 0:04:35.200 --> 0:04:38.880 disney World Star Wars Galactic Star Cruiser. It was one 0:04:38.960 --> 0:04:41.880 of the most expensive attractions of the park. The company 0:04:41.960 --> 0:04:44.640 has also raised outs about billions of dollars in new 0:04:44.640 --> 0:04:47.640 investment in the state, while Disney is in the middle 0:04:47.640 --> 0:04:49.719 of cost cuts. Say it's hard not to see the 0:04:49.760 --> 0:04:53.680 moves as retaliation against Ron De Santis. Disney opposed a 0:04:53.760 --> 0:04:57.320 state law limiting the discussion of gender issues in public schools. 0:04:57.880 --> 0:05:01.800 In turn, DeSantis, to presume president contender took control of 0:05:01.839 --> 0:05:05.440 a board that oversees municipal services at Disney World. Now 0:05:05.440 --> 0:05:08.880 they're in court, you know, York. Come John Tucker Bloomberg daybreak, All. 0:05:08.880 --> 0:05:10.960 Right, John, Thanks, We'll be turned to the economy now, 0:05:11.000 --> 0:05:13.880 and bets are growing on another FED rate hike. Traders 0:05:13.880 --> 0:05:17.039 now have a June increase at forty percent. Federal Reserve 0:05:17.080 --> 0:05:19.760 Governor Phillip Jefferson says he's willing to be patient and 0:05:19.800 --> 0:05:21.960 wants to see the impact of past rate hikes. 0:05:22.279 --> 0:05:26.480 History shows that monetary policy works with long and variable legs, 0:05:26.680 --> 0:05:30.240 and that a year is not long enough period for 0:05:30.360 --> 0:05:34.039 demand to feel the full effects of higher interest rate. 0:05:34.400 --> 0:05:36.880 Thank Governor Philip Jefferson made the comments at an event 0:05:36.920 --> 0:05:40.560 hosted by the National Association of Insurance Commissioners in Washington. 0:05:40.800 --> 0:05:44.200 One prominent Wall Street strategist says FED high grates may 0:05:44.279 --> 0:05:47.520 not be over. That's one reason why he's recommending investors 0:05:47.720 --> 0:05:50.680 sell this recent rally, which saw stocks close at a 0:05:50.760 --> 0:05:53.960 nine month high yesterday. Bank of America as Michael Hartnett 0:05:54.000 --> 0:05:58.159 also says tech and artificial intelligence are forming a bubble. Hartnett, 0:05:58.160 --> 0:06:01.520 who correctly predicted last year that recession fears would fuel 0:06:01.560 --> 0:06:04.600 a stock exodus, recommended selling the s and p five 0:06:04.720 --> 0:06:08.360 hundred at forty two hundred, the indexes current level and Amy. 0:06:08.400 --> 0:06:11.080 A management shuffle may be in the works at Lazard. 0:06:11.080 --> 0:06:14.000 Bloomberg News has learned CEO Ken Jacob's plans to step 0:06:14.040 --> 0:06:16.880 down from the top job as the investment bank RETRENCHESHM 0:06:16.880 --> 0:06:19.280 at a slump in deal making and a plunge in 0:06:19.320 --> 0:06:22.440 the company's stock price. Sources say sixty four year old 0:06:22.480 --> 0:06:25.120 Jacobs are a main with the firm and be succeeded 0:06:25.120 --> 0:06:28.680 as CEO by Peter Orzag. Straight ahead your latest local 0:06:28.720 --> 0:06:33.360 headlines and this is Bloomberg. 0:06:35.440 --> 0:06:38.679 Thank you, Karen five seven on Wall Street, fifty five 0:06:38.720 --> 0:06:41.240 degrees in New York. Look for sunshine as we go 0:06:41.320 --> 0:06:43.640 up to seventy Today. Time now for a look at 0:06:43.640 --> 0:06:46.040 some of the other stories making news in New York 0:06:46.080 --> 0:06:48.600 and around the world. For that, we're joined by Bloomberg's 0:06:48.600 --> 0:06:50.240 Michael bar Good morning, Michael. 0:06:49.960 --> 0:06:52.960 Good morning. Amy. Funeral services will take place today in 0:06:53.040 --> 0:06:56.159 Harlem for a homeless New York City subway writer who 0:06:56.200 --> 0:06:58.680 died earlier this month after he was put in a 0:06:58.760 --> 0:07:02.200 choke hold. Neely's death on a New York City subway 0:07:02.240 --> 0:07:06.560 train sparked protests. Marine veteran Daniel Penny attempted to subdue 0:07:06.600 --> 0:07:09.440 Neely on an f train after Neely was said to 0:07:09.480 --> 0:07:13.160 be shouting in passengers. The medical examiner ruled Neely's death 0:07:13.160 --> 0:07:17.600 a homicide. Last week, Penny was arrained on a manslaughter charge. 0:07:17.720 --> 0:07:20.080 The NYPD made a grim discovery in the search for 0:07:20.120 --> 0:07:23.400 two missing boys. Authorities say the body of a boy 0:07:23.640 --> 0:07:26.360 missing from Harlem was pulled from the East River. The 0:07:26.440 --> 0:07:29.600 victim's family confirmed that the remains belonged to thirteen year 0:07:29.600 --> 0:07:32.960 old Garrett Warren. Warren and his friend, eleven year old 0:07:33.040 --> 0:07:36.920 Alpha Berry, when missing several days ago. Police in the 0:07:37.000 --> 0:07:40.600 Dayton suburb of Morein, Ohio say there was an active 0:07:40.680 --> 0:07:44.960 shooting incident at a diesel manufacturing plant. Police say two 0:07:45.000 --> 0:07:47.760 people were shot and one died at the scene. Iraine 0:07:47.800 --> 0:07:49.800 Police Sergeant Andrew Perrish our. 0:07:49.680 --> 0:07:54.200 Officers responded along with the fire department, quickly got here 0:07:54.320 --> 0:07:57.520 and were able to get into the scene and. 0:07:58.120 --> 0:08:01.560 Within just a few minutes confirmed the active threat inside 0:08:01.560 --> 0:08:02.840 the building was over. 0:08:03.280 --> 0:08:06.960 Sergeant Parrish says the suspect remains hospitalized for a self 0:08:07.000 --> 0:08:11.720 inflicted gunshot wound. A spokesperson for Democratic Senator Diane Feinstein, 0:08:11.760 --> 0:08:14.400 who was absent from the Capitol for months after being 0:08:14.440 --> 0:08:20.360 hospitalized with shingles, suffered serious complications. The complications included encephalitis 0:08:20.440 --> 0:08:24.160 and Ramsey Hunt syndrome, a neurological disorder that can arise 0:08:24.160 --> 0:08:27.720 from shingles virus. Weinstein, who is eighty nine, returned to 0:08:27.760 --> 0:08:30.880 the Capitol last week in a wheelchair. Experts are warning 0:08:30.920 --> 0:08:33.880 about a rise in the decades old bank fraud scam 0:08:34.000 --> 0:08:37.440 called check washing. Anyone who sends paper checks and the 0:08:37.480 --> 0:08:42.040 mail is vulnerable. John Breo with the National Consumers League 0:08:42.120 --> 0:08:45.800 says it starts with scammers plucking those checks, usually out 0:08:45.840 --> 0:08:48.200 of blue USPS mailboxes on the street. 0:08:48.760 --> 0:08:51.720 They take that check and they put it into a 0:08:52.000 --> 0:08:55.000 chemical solution. Usually it's something like acetone that you can 0:08:55.080 --> 0:08:57.960 find in most neo polish removers, and that allows them 0:08:58.080 --> 0:09:00.400 to get the ink that you have used to write 0:09:00.440 --> 0:09:01.680 the check off of the check. 0:09:02.080 --> 0:09:05.360 The National Consumers League John Breo says an easy way 0:09:05.400 --> 0:09:08.360 to protect against the scheme is to switch to paperless payments. 0:09:08.840 --> 0:09:11.480 Global News twenty four hours a day, powered by more 0:09:11.520 --> 0:09:14.360 than twenty seven hundred journalists d analysts in over one 0:09:14.440 --> 0:09:17.520 hundred and twenty countries. I'm Michael Barr. This is Bloomberg Gaming. 0:09:17.840 --> 0:09:25.040 All right, thank you, Michael. Time now for our Bloomberg 0:09:25.040 --> 0:09:27.600 Sports update. For that, we bring in John stash Hour. 0:09:28.080 --> 0:09:28.640 All right, Emmy. 0:09:28.640 --> 0:09:30.720 The Denver Nuggets KPE winning at home now eight to 0:09:30.720 --> 0:09:33.520 no in Denver, and the Nuggets are two wins from 0:09:33.520 --> 0:09:36.600 a place they've never been before. The NBA Finals were 0:09:36.640 --> 0:09:38.319 up to nothing on the Lakers. They trailed much of 0:09:38.400 --> 0:09:41.120 Game two. We got a big fourth quarter from Jamal Murray. 0:09:41.120 --> 0:09:43.640 That's what he scored twenty three of his thirty seven 0:09:43.679 --> 0:09:46.280 points in Denver. One one oh eight, one oh three. 0:09:46.440 --> 0:09:49.280 Yet another triple double for Nicolai Jokich, his seventh of 0:09:49.280 --> 0:09:51.920 the playoffs. Game two in the East is tonight in Boston. 0:09:51.960 --> 0:09:53.880 Miami up won up in the heat, trying to reach 0:09:53.920 --> 0:09:56.960 the finals as an eight seed. The hockey team in 0:09:57.120 --> 0:10:00.600 South Florida also seeded eighth. The Panthers played Game one 0:10:00.640 --> 0:10:03.880 at Carolina. This game was two to two for ninety 0:10:03.920 --> 0:10:04.439 six minutes. 0:10:04.440 --> 0:10:06.400 Sampette keeps see it out fuck Ka Chuck is Shuck 0:10:06.559 --> 0:10:12.400 Piece stars pieceas Matthew Good Chuck the overtime winner. The 0:10:12.600 --> 0:10:15.760 Pitters take game p wqem to. 0:10:15.880 --> 0:10:19.400 Chuck's goal came with thirteen seconds left in the fourth overtime, 0:10:19.600 --> 0:10:23.160 sixth longest game in NHL history. Yankees bounced back from 0:10:23.160 --> 0:10:25.120 the extra day loss in Toronto to win four to two. 0:10:25.200 --> 0:10:28.040 Aaron Judge got him going to run over first inning, 0:10:28.120 --> 0:10:30.320 his sixth in the last six games. He later nearly 0:10:30.400 --> 0:10:32.120 hit another it bounced off the top of the wall 0:10:32.200 --> 0:10:34.599 for a double. Nester Cortez had had a couple of 0:10:34.679 --> 0:10:36.679 recent shaky addings, but he was sharpened this one of 0:10:36.679 --> 0:10:39.120 the Yanks take three to four. They played tonight in 0:10:39.200 --> 0:10:42.199 Cincinnati the Mets. Tonight home for Cleveland. They beat Tampa 0:10:42.280 --> 0:10:44.719 Bay three to two, so they have their first two 0:10:44.800 --> 0:10:47.360 game win streaks since April twenty first. It's also their 0:10:47.400 --> 0:10:51.560 first series victory since then DJA Championship in Rochester. They'll 0:10:51.559 --> 0:10:53.720 finish the first round today. Then played the second. Thirty 0:10:53.760 --> 0:10:56.079 four year old American Eric Cole, playing in a Major 0:10:56.160 --> 0:10:58.120 for only the second time, is five under and he 0:10:58.200 --> 0:11:02.240 leads by one over bryceon De Shamba. Round two coverage 0:11:02.240 --> 0:11:05.080 today starting at four Here, I'm Bloomberg Great sham Stash. 0:11:05.160 --> 0:11:06.439 I went Bloomberg Sports. 0:11:08.480 --> 0:11:11.840 Live from coast to coast, from New York to San Francisco, 0:11:12.080 --> 0:11:16.480 Boston to Washington. D c nationwide on SIRIUSXAM, the Bloomberg 0:11:16.559 --> 0:11:18.319 Business app, and Bloomberg dot Com. 0:11:18.720 --> 0:11:23.600 This is Bloomberg Daybreak. Good Friday morning. I'm Ammy Morris. 0:11:23.800 --> 0:11:27.800 In recent days, President Biden and House Speaker McCarthy signalled 0:11:28.000 --> 0:11:31.679 progress on a debt default deal. There will be compromises 0:11:31.720 --> 0:11:34.920 to get to the finish line. Arizona Senator Kirsten Cinema says, well, 0:11:35.000 --> 0:11:38.199 compromise is needed to strike a deal that works for Americans. 0:11:38.600 --> 0:11:42.400 In an exclusive conversation on Bloomberg's Sound on yesterday, our 0:11:42.520 --> 0:11:46.040 Joe Matthew and Kaylee Lines spoke with the independent Arizona 0:11:46.120 --> 0:11:50.280 senator about the debt ceiling, bank turmoil and the southern border. 0:11:50.400 --> 0:11:51.640 Let's go to that conversation. 0:11:51.960 --> 0:11:53.959 I want to start with the matter at hand, that, 0:11:54.120 --> 0:11:58.480 of course, is the debt ceiling and an illoming apparent 0:11:59.280 --> 0:12:02.160 deal here. Kevin McCarthy says it's going to be on 0:12:02.240 --> 0:12:05.040 the floor next week. Then it becomes a question of passage, 0:12:05.160 --> 0:12:07.559 of course, Senator, and it appears he will need some 0:12:07.720 --> 0:12:11.520 Democratic votes. Can you tell our listeners and viewers where 0:12:11.559 --> 0:12:12.760 are your red lines on this? 0:12:14.559 --> 0:12:17.559 Well, first, one thing to remember is I'm proud to 0:12:17.600 --> 0:12:20.720 be the independent Senate from Arizona, and so I'm happy. 0:12:20.520 --> 0:12:21.439 To join you all today. 0:12:22.040 --> 0:12:25.360 I actually don't tend to talk in terms of red lines, 0:12:25.440 --> 0:12:28.360 and in fact, I think that when folks come around 0:12:28.400 --> 0:12:31.120 and start talking about red lines, that's how you tend 0:12:31.160 --> 0:12:33.200 to not get to a deal. So what we've got 0:12:33.240 --> 0:12:35.800 to do is really focus on coming together to find 0:12:35.880 --> 0:12:40.000 areas of shared agreement. The default, the possibility of default 0:12:40.040 --> 0:12:41.679 is a threat to every single one of us in 0:12:41.760 --> 0:12:44.839 this nation, regardless of whether they're a Democrat, Republican, or 0:12:44.840 --> 0:12:47.440 an independent. So our goal here has to be about 0:12:47.520 --> 0:12:50.640 solving the challenge and doing it together. Now, if you 0:12:50.720 --> 0:12:53.040 ask me about what should I think we do about 0:12:53.160 --> 0:12:56.120 the debt limit and default, the bottom line is that 0:12:56.280 --> 0:13:00.559 both political parties are guilty of playing fire when it 0:13:00.600 --> 0:13:02.719 comes to the debt limit. When either party is in 0:13:02.760 --> 0:13:06.520 the minority, they demand requirements from the other party in 0:13:06.679 --> 0:13:09.920 order to get to a deal. And unfortunately that's been 0:13:10.000 --> 0:13:12.360 happening for years, and it's a mistake. It's wrong. We 0:13:12.440 --> 0:13:14.559 should never play with fire when it comes to the 0:13:14.600 --> 0:13:16.360 full faith in credit the United States of America. 0:13:17.040 --> 0:13:21.400 Now here we are today, we know that you have 0:13:21.520 --> 0:13:23.800 had a long history of relationships with some of the 0:13:23.880 --> 0:13:26.920 key players in these negotiations, a long working relationship with 0:13:27.000 --> 0:13:29.959 how Speaker Kevin McCarthy, with Stever Shehetty, who is negotiating 0:13:30.440 --> 0:13:31.880 on the side of the White House, as well as 0:13:31.920 --> 0:13:33.960 the O and B director Shalanda Young. So what are 0:13:34.040 --> 0:13:36.679 you telling them directly? How have you been involved in 0:13:36.720 --> 0:13:37.599 these conversations. 0:13:38.120 --> 0:13:40.000 Well, the good news is that we've now got the 0:13:40.080 --> 0:13:42.160 right people in the room to have the conversation and 0:13:42.240 --> 0:13:44.480 come to an agreement, and I am beginning to feel 0:13:44.520 --> 0:13:47.000 more and more confident each day that such an agreement 0:13:47.120 --> 0:13:50.280 will occur. We've got some really good news here. One 0:13:50.600 --> 0:13:52.920 is that Kevin McCarthy has said over and over he 0:13:53.000 --> 0:13:55.520 doesn't want to have a default. His folks are in 0:13:55.600 --> 0:13:59.240 the room negotiating to prevent a default and solve this challenge. 0:14:00.040 --> 0:14:02.439 Shetty and I have negotiated many a deal together in 0:14:02.480 --> 0:14:05.079 the past several years, and he's a good voice for 0:14:05.160 --> 0:14:08.360 the president. And Shalanda Young, she's the smartest person in 0:14:08.400 --> 0:14:11.839 the building. She knows the budget and appropriations inside out. 0:14:12.280 --> 0:14:14.880 So with those folks at the table, I feel confident 0:14:15.000 --> 0:14:16.960 that they're going to come to an agreement and then 0:14:17.000 --> 0:14:19.280 we'll be able to stave off default and get back 0:14:19.320 --> 0:14:20.840 to the business of governing our country. 0:14:21.520 --> 0:14:24.520 Your confidence is refreshing, Senator. Though there are a lot 0:14:24.560 --> 0:14:27.080 of questions right now about work requirements, this seems to 0:14:27.120 --> 0:14:29.200 be where a lot of the action is in the 0:14:29.480 --> 0:14:32.760 negotiating room here, and I wonder where your line is. 0:14:32.880 --> 0:14:36.000 President Biden says he's open to additional work requirements for 0:14:36.080 --> 0:14:39.560 programs like SNAP, but draws the line at medicaid. 0:14:39.640 --> 0:14:40.440 Do you agree with him? 0:14:41.320 --> 0:14:43.720 It's funny because you keep mentioning the word line. And 0:14:43.800 --> 0:14:46.560 as I mentioned at the beginning of our conversation, when 0:14:46.600 --> 0:14:48.800 folks put up red lines, it makes it harder to 0:14:48.840 --> 0:14:52.280 solve the problem, not easier. The reality is, in our country, 0:14:52.360 --> 0:14:56.480 we've long had modest work requirements for some entitlement programs, 0:14:57.000 --> 0:15:01.280 and continuing those makes relevant sense. Conversation about whether or 0:15:01.320 --> 0:15:03.360 not we'll have fewer or more of those in the 0:15:03.440 --> 0:15:07.160 future is really a discussion that belongs in the negotiating room, 0:15:07.560 --> 0:15:08.960 not on television cameras. 0:15:09.040 --> 0:15:12.400 If ultimately, if ultimately that is included in the package, Senator, 0:15:12.440 --> 0:15:14.320 would you still vote yes to that deal? 0:15:15.520 --> 0:15:17.160 I like how you guys keep trying to come back 0:15:17.200 --> 0:15:19.480 to the redline question and I'll just tell you right 0:15:19.520 --> 0:15:21.640 here and now, I'm not going to answer it, but 0:15:21.760 --> 0:15:23.720 I am happy to talk about how I think we 0:15:23.800 --> 0:15:27.920 can move forward after this conversation to prevent a future 0:15:28.000 --> 0:15:30.920 situation like this one. In fact, I just introduced a 0:15:30.960 --> 0:15:35.040 bill with Senator Ernst that would ensure that Congress gets accurate, 0:15:35.240 --> 0:15:39.120 nonpartisan information every year about the true facts around the 0:15:39.120 --> 0:15:41.920 fiscal state of our nation. That way, as members of 0:15:42.000 --> 0:15:45.400 Congress and Senators, we're all informed about what our financial 0:15:45.480 --> 0:15:48.720 situation is like. And then, rather than playing politics and 0:15:48.800 --> 0:15:50.560 playing fire with the full faith in part of the 0:15:50.640 --> 0:15:53.240 United States of America, perhaps we might choose to get 0:15:53.360 --> 0:15:56.960 serious about fiscal discipline and taking care of the fiscal 0:15:57.000 --> 0:15:57.680 health of our nation. 0:15:58.560 --> 0:16:00.800 Senator, you had a long list of questions today for 0:16:01.240 --> 0:16:03.120 the Vice Chair of the Federal Reserve, Michael Barr, and 0:16:03.160 --> 0:16:06.520 a Senate Banking Committee hearing looking into the causes and 0:16:06.600 --> 0:16:10.400 the fallout from the bank collapses that we've witnessed over 0:16:10.440 --> 0:16:14.040 the past couple of months. Here among your questions really 0:16:14.400 --> 0:16:17.400 got to authority, oversight, supervision here, and I wonder if 0:16:17.440 --> 0:16:20.600 at this point, following your conversation with Michael Barr today, 0:16:20.840 --> 0:16:24.400 you're satisfied with the FED exercising its full authority or 0:16:24.440 --> 0:16:26.520 does Congress need to mandate something here. 0:16:27.920 --> 0:16:30.120 Well, it's been clear from the last two times that 0:16:30.280 --> 0:16:34.240 Vice Chair bar has testified in the Banking Committee that 0:16:34.640 --> 0:16:37.920 he's acknowledged two things. One that the agency did have 0:16:38.160 --> 0:16:42.359 sufficient authority to provide oversight and failed to do so appropriately. 0:16:42.840 --> 0:16:46.400 Today he talked about making internal changes around the culture 0:16:46.800 --> 0:16:49.800 of his organization, and as you heard in my questions, 0:16:49.840 --> 0:16:52.720 I've encouraged him to create a detailed plan and report 0:16:52.800 --> 0:16:55.800 it quarterly to Congress so that he's accountable to us 0:16:55.920 --> 0:16:58.800 for actually implementing that plan. But one thing that we 0:16:58.960 --> 0:17:03.160 know is clear the agency, the FED, had the authority 0:17:03.560 --> 0:17:07.320 and chose not to exercise it over SVB and other 0:17:07.440 --> 0:17:10.119 banks that have faced failures, and that is a failure 0:17:10.200 --> 0:17:13.480 on their part. So as you saw today, I've encouraged 0:17:13.520 --> 0:17:16.359 them and tell them that we expect them to actually 0:17:16.480 --> 0:17:19.200 do their job and do it at the speed of business. 0:17:19.800 --> 0:17:22.800 One thing we've learned is that the FED was too 0:17:22.960 --> 0:17:26.960 slow in responding to elements or signs of risk. They 0:17:26.960 --> 0:17:29.000 would ask questions of the bank, but didn't hold them 0:17:29.000 --> 0:17:32.320 accountable and didn't do so in real time. That's something 0:17:32.400 --> 0:17:34.680 they need to do is modernize so they can actually 0:17:34.760 --> 0:17:37.480 respond to these threats in real time, just like we 0:17:37.600 --> 0:17:40.880 as consumers respond to the threats or challenges we face 0:17:41.040 --> 0:17:41.640 in real time. 0:17:42.640 --> 0:17:45.199 So, Senator, that's something you'd like to see the regulators 0:17:45.280 --> 0:17:47.600 do internally. But is there anything you'd like to see 0:17:47.680 --> 0:17:51.760 Congress do legislatively? Are there any measures bills that you 0:17:51.800 --> 0:17:54.000 would support to address the banking crisis. 0:17:54.840 --> 0:17:56.960 There are a number of pieces of legislation that we've 0:17:57.080 --> 0:18:00.560 introduced in a bipartisan way, including legislation it would claw 0:18:00.640 --> 0:18:05.280 back the executive bonuses and other inappropriately taken income on 0:18:05.359 --> 0:18:08.440 the part of these executives. But in terms of regulation, 0:18:09.040 --> 0:18:12.440 let's be clear, the FED and FDIC have said they 0:18:12.640 --> 0:18:16.760 do have the regulatory powers to prevent further bank failures 0:18:16.800 --> 0:18:19.920 and to hold banks accountable. It's their job to do it. 0:18:20.400 --> 0:18:23.240 It's Congress's job to hold them accountable and ensure. 0:18:23.000 --> 0:18:23.399 They do it. 0:18:25.200 --> 0:18:27.720 Senator Kerry Lake has been in town this Week's been 0:18:27.800 --> 0:18:30.720 her second visit here this week this year. I should 0:18:30.720 --> 0:18:33.960 stay talking with the nrsc Reuben Diego has been talking 0:18:34.000 --> 0:18:36.440 about you a lot in the media, and I wonder 0:18:36.520 --> 0:18:38.879 if you can tell us what your timeline is for 0:18:39.000 --> 0:18:41.080 making a decision on a potential run for reelection. 0:18:42.000 --> 0:18:43.760 I don't have anything to offer to you on that point. 0:18:43.960 --> 0:18:46.879 As you can tell, I am one hundred percent invested 0:18:47.280 --> 0:18:49.760 and focused on doing the work for Arizona in the 0:18:49.840 --> 0:18:52.520 United States Senate right now. As I say, politics can 0:18:52.560 --> 0:18:54.600 wait to another day. But right now, we have so 0:18:54.760 --> 0:18:57.399 many challenges on our plate. Arizonas can count on me 0:18:57.440 --> 0:18:59.880 to stay one hundred percent focused on meeting those challenges. 0:19:00.760 --> 0:19:02.760 But as you do your work in the Senate and 0:19:02.960 --> 0:19:05.879 look towards your future, can you rule out caucusing with 0:19:05.960 --> 0:19:06.960 the Republican Party. 0:19:08.320 --> 0:19:10.960 Well, I've asked, been asked, and answered that question numerous times, 0:19:11.000 --> 0:19:12.399 and as I said just about a week and a 0:19:12.400 --> 0:19:15.359 half ago, you don't leave one broken party to join another. 0:19:16.080 --> 0:19:20.320 Arizonans and Americans across this country are hungry for leaders 0:19:20.320 --> 0:19:23.040 who are not invested in one party or the other, 0:19:23.400 --> 0:19:25.520 and who don't march to the drum when they're told 0:19:25.600 --> 0:19:28.880 to do something, and who importantly are willing to get 0:19:28.960 --> 0:19:31.639 out of those partisan boxes and solve the challenges we 0:19:31.720 --> 0:19:35.000 face in our country. I've demonstrated to Arizonans over the 0:19:35.080 --> 0:19:37.480 last twenty years of service that I can be that 0:19:37.600 --> 0:19:39.800 person and have been that person, and I know they 0:19:39.800 --> 0:19:42.399 can count on me to continue doing that work. So 0:19:42.640 --> 0:19:44.560 folks can count on me to be the same independent 0:19:44.680 --> 0:19:45.640 voice I've always been. 0:19:47.040 --> 0:19:49.920 I have to ask you about an important issue for 0:19:50.160 --> 0:19:51.920 your state, and I know it's something that you take 0:19:52.040 --> 0:19:55.480 very personally, Senator, and that's what's happening at our southern border. 0:19:55.760 --> 0:19:59.200 You're up with a bipartisan bill to extend Title forty 0:19:59.240 --> 0:20:02.320 two was just rescinded. Are you getting support in that 0:20:02.440 --> 0:20:03.320 effort in the Senate? 0:20:04.200 --> 0:20:06.200