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

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Speaker 1: Break for Wednesday, May twenty fourth.

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Speaker 2: Coming up today, talks on the debt ceiling hit a

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Speaker 2: wall with just eight days till a potential default.

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Speaker 1: Ronda Santis is set to launch his presidential bid in

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Speaker 1: an unconventional way.

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Speaker 2: Britain's hot inflation fuels bets for higher.

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Speaker 1: Rates and get ready to pay more if you share

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Speaker 1: your Netflix account.

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Speaker 3: The data cent for Donald Trump's New York criminal trial.

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Speaker 3: Mayor Adams trying to suspend the city's right to shelter mandate.

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Speaker 3: I'm John Tucker. Those stories straight ahead.

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Speaker 4: I'm down Stash Aaron Sports, a walk off win for

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Speaker 4: the Yankees, a loss for the Mets, NBA playoffs, the

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Speaker 4: Celtics beat the heat.

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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 sturn your day in just one

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

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Speaker 5: Business app, and 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: Well, Karen, we're coming off a losing session for equities.

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Speaker 2: Both the S and P five hundred and the NANSDAK

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Speaker 2: fell more than one percent yesterday with debt ceiling talks

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Speaker 2: at an impass in Washington. After the latest round of

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Speaker 2: negotiations on Capitol Hill, House Speaker Kevin McCarthy said they're

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Speaker 2: not there yet.

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Speaker 6: There are certain.

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Speaker 2: Things that divide as and we know that is you

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Speaker 2: cannot spend more money next year than we spend this year.

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Speaker 2: Clear today, Speaker McCarthy and his negotiators say it's not

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Speaker 2: clear when the two sides will meet again. White House

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Speaker 2: spokeswoman Karine Jean Pierre says President Biden's team is willing

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Speaker 2: to keep talking.

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Speaker 7: Negotiations are hard, they're not easy. This is democracy in

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Speaker 7: action as we have seen it, as we have looked

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Speaker 7: at what's been going on these past couple of days

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Speaker 7: and weeks, and what both sides need to understand is

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Speaker 7: neither side is going to get exactly what they want.

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Speaker 2: This standoff means any vote on a deal might not

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Speaker 2: happen until next week. The Treasury Department has said it

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Speaker 2: could start running out of cash as soon as next Thursday.

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Speaker 1: Well Nathan at least one Republican says there's still time

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Speaker 1: for a deal Congressman French Hill as the vice chairman

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Speaker 1: of the House Financial Services Committee.

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Speaker 8: No one wants to default on the Treasury securities. No

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Speaker 8: one's proposing to do that. But unfortunately Congress uses a deadline.

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Speaker 8: And so, like John Bahner told us years and years ago,

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Speaker 8: Congress moved very slowly until it doesn't. And so we're

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Speaker 8: working on this deadline, and we want to get a

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Speaker 8: deal that's responsible and sensible, raises the debt sailing, but

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Speaker 8: curtails the avalanche of spending.

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Speaker 1: And ARKANSAA Republican french Hill may the comments on Bloomberg's

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Speaker 1: Balance of Power catch the program weekday evenings at five

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Speaker 1: pm Wall Street Time on Bloomberg Television.

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Speaker 2: Well, Karen, we've heard many, including Treasury Secretary Janet Yellen Warren,

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Speaker 2: about the catastrophic impact of debt default would have on

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Speaker 2: the economy. One prominent investor, Rabeni Macro Associates CEO Nurial

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Speaker 2: Rabini says the stock market would also feel major repercussions.

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Speaker 9: We don't know yet. They may get to the last

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Speaker 9: hour before there's an agreement, or it's possible that don't

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Speaker 9: reach an agreement. If that doesn't happen, then the market

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Speaker 9: is going to crash and that may force an agreement

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Speaker 9: in the next few days.

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Speaker 2: Nouriel Ravin made those comments to Bloomberg's Francine Lacua at

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Speaker 2: the Cutter Economic Forum.

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Speaker 1: Well, Nathan. Another major political story we're following, Ron DeSantis

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Speaker 1: is apparently set to announce his run for president in

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Speaker 1: a very non traditional manner, and Bloomberg's Ad Baxter has the.

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Speaker 10: Story Desantas announcing it'll be a Twitter live stream with

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Speaker 10: Elin Musk. That means the live audio will be available

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Speaker 10: to Musk's more than one hundred and forty million followers.

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Speaker 10: It also raises a number of issues, first to Santa's

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Speaker 10: feeling there is a large audience, but then from Musk

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Speaker 10: a rather interesting move as he shuffles the app to

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Speaker 10: more partisan approach to political discourse and monitoring. Also raises

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Speaker 10: issues for advertisers at a potential row with Disney. One

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Speaker 10: of its largest advertisers in any case today is the

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Speaker 10: Santa State amount is challenged to Donald Trump in San Francisco.

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Speaker 10: I'm at Baxter Bloomberg Debreak.

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Speaker 6: Thanks Ed.

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Speaker 2: We got some major banking news this morning. Britain's anti

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Speaker 2: trust agency says traders at five major banks colluded in

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Speaker 2: chat rooms to swap sensitive information on UK bonds. The

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Speaker 2: Competition and Markets Authority says City Group, Deutsche Bank, HSBC,

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Speaker 2: Morgan Stanley and Royal Bank of Canada each unlawfully shared

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Speaker 2: competitively sensitive information in chatrooms between two thousand and nine

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Speaker 2: and twenty thirteen.

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Speaker 1: Well, turning to the economy now, Nathan Britain's inflation rate

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Speaker 1: remained much stronger than expected, with gauges and measuring services

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Speaker 1: and core prices rising at the fastest pace in more

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Speaker 1: than three decades. We get more from Bloomberg's Lizzie Burden

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Speaker 1: in London.

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Speaker 11: Eight point seven percent is the actual figure for inflation.

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Speaker 11: The expectation from economists was eight point two percent. The

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Speaker 11: Bank of England had seen eight point four percent. So,

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Speaker 11: first of all, it goes back to questions about economists' models,

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Speaker 11: and it's a point that the chief economists of the

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Speaker 11: Bank of England, who Pill himself raised in Parliament yesterday.

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Speaker 11: The Governor Andrew Bailey says, part of the reason for

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Speaker 11: the problem with all the estimates is that they'd assumed

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Speaker 11: inflation would fall as fast as it rose and it hasn't.

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Speaker 1: And Bloomberg's Lizzie Burden in London says the figures will

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Speaker 1: add pressure on the Bank of England to keep raising

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Speaker 1: interest rates through the summer.

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Speaker 2: We'll back here in the US Karen. The Fed issues

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Speaker 2: the minutes from this month's policy meeting, when central bankers

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Speaker 2: opted for another quarter point interest rate increase. Bloomberg's Annie

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Speaker 2: del Judice reports.

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Speaker 12: It's like reading tea leaves.

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Speaker 13: It's the Fed dun raising interest rates Bloomberg Economics. As

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Speaker 13: the minutes may reveal why Fedchair Jerown Pale appeared to

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Speaker 13: downplay the impact of rising wages on inflation immediately following

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Speaker 13: the policy meeting. Since then, he signaled he's inclined to

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Speaker 13: pause tightening, citing credit conditions. The FED chair may face opposition,

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Speaker 13: though other officials are suggesting a US central bank needs

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Speaker 13: to do even more to stomp out inflation. Vinnie del

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Speaker 13: Judice Bloomberg.

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Speaker 1: Daybreak, Vinnie, thank you. And Netflix is bringing its crackdown

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Speaker 1: on account sharing to the US. We get the story

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Speaker 1: from Bloomberg's Charlie Bellett.

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Speaker 6: Well Services outline procedure and costs for US customers who

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Speaker 6: wish to continue sharing their accounts with people outside their household.

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Speaker 6: According to a blog post by the company, the streaming

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Speaker 6: TV leader will begin sending emails to customers who share

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Speaker 6: their passwords. Netflix is giving them the option to share

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Speaker 6: their account for an additional eight dollars a month, cheaper

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Speaker 6: than a full price subscription. The crackdown began last year

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Speaker 6: in Latin America, and it's a key part of Netflix's

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Speaker 6: strategy to generate more revenue from users. In New York,

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Speaker 6: Charlie Pellett Bloomberg Daybreak.

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Speaker 2: Thank you, Charlie. Local headlines and a check of sports. Next,

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Speaker 2: This is Bloomberg Time Now to look at some of

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

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Speaker 2: the world with Bloomberg's John Tucker.

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Speaker 3: Good Morning, John, Good Morning, Nathan Is more migrants flood

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Speaker 3: in New York City is asking a judge to suspend

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Speaker 3: the right to shelter rule. More of this report from

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Speaker 3: Bloomberg's Jeff Bellinger.

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Speaker 12: Mayor Adams has asked judge to temporarily suspend the forty

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Speaker 12: two year old court ruling requiring the city to shelter

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Speaker 12: homeless adults. The request comes amid a surge in asylum

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Speaker 12: seekers that is straining the municipal budget. The mandate has

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Speaker 12: forced the city to turn to securing hotels to house migrants.

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Speaker 12: It has opened one hundred and thirty emergency shelters and

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Speaker 12: eight temporary facilities to manage the surge. New York's Department

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Speaker 12: of Homeless Services is currently sheltering more than eighty one

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Speaker 12: thousand individuals, a seventy five percent increase from the previous year.

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Speaker 12: Jeff Bellinger, Bloomberg Radio.

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Speaker 3: Donald Trump is scheduled to go on trial March twenty

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Speaker 3: fifth in his criminal case in New York, where he's

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Speaker 3: charged with falsifying business records in connection with hush money

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Speaker 3: payments over alleged sexual encounters. Trump appeared by video before

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Speaker 3: a New York State Supreme Court justice who set the

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Speaker 3: trial date after going over an order that bar is

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Speaker 3: the former president from publicly disclosing details about witnesses or

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Speaker 3: other evidence. Chief Justice John Roberts, delivering his first public

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Speaker 3: comments outside the court since September, he defended the institution

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Speaker 3: against suggestions it was losing its legitimacy.

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Speaker 8: I want to assure people that I am committed to

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Speaker 8: making certain that we as a court adhere to the

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Speaker 8: highest standards of conduct.

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Speaker 3: Robert speaking at an awards ceremony the court facing slumping

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Speaker 3: public approval, have been a barrage of misconduct allegations. Jeffrey Garrell,

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Speaker 3: a longtime stakeholder in Manhattan's Flat Iron Building, and his

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Speaker 3: group of investors have won an auction for the iconic landmark.

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Speaker 3: It comes after years of battling over its future. Garrell,

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Speaker 3: chairman of GFP Real Estate, been one hundred and sixty

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Speaker 3: one million dollars for the wedge shaped tower. Winning the auction,

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Speaker 3: he said the owners would consider converting either part or

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Speaker 3: all of the building to apartments. And Martin Shirkelly, the

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Speaker 3: former pharmaceutical chief executive officer, who has served almost seven

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Speaker 3: years in prison for securities fraud, is now earning twenty

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Speaker 3: five dollars a month twenty five hundred dollars amou of

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Speaker 3: consulting for a law firm and living with the sister

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Speaker 3: in Queens. The US Probation Office says the forty year

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Speaker 3: old shore Kelly has had a mostly positive adjustment since

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Speaker 3: being released from prison last year. Global News twenty four

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Speaker 3: hours a day, Power five more than twenty seven hundred

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Speaker 3: journalists and analysts in more than one hundred twenty countries.

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Speaker 3: I'm John Tuckery, DC, is Bloomberg, Nathan.

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Speaker 2: Thank you, John. Time now for the Bloomberg Sports Update.

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Speaker 2: Good morning, John Stanshout, Good morning, Nathan.

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Speaker 4: Yankees back at the stadium with much improved Baltimore. Yanks

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Speaker 4: d Garrett Cole on the mound with the Orioles jumped

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Speaker 4: in front board nothing. After the Yanks rally to tie,

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Speaker 4: Baltimore reclaimed the lead, but the Yankees still like their

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Speaker 4: chances going to the bottom of the ninth considering who

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Speaker 4: they had leaning off.

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Speaker 3: Oh dude, swinging a fly ball, It's t to left field.

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Speaker 3: It is gonna go.

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Speaker 2: Hayes watches it is done.

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Speaker 14: Amo run.

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Speaker 3: Harry Judge ties the game.

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Speaker 2: We're a toll of o run just straight away.

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Speaker 4: Let fieldfa and the Yankee scored again tenth inning. They

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Speaker 4: won six to five. They've won five in a row twelve,

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Speaker 4: with their last fifteen improving to thirty and twenty. Also

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Speaker 4: in the Al East, Toronto ended a five game losing

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Speaker 4: streak by winning that Tampa Bay twenty to one. The

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Speaker 4: Mets five game win streak ended at Riglia seven to

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Speaker 4: two loss to the Cubs when Denver finished the sweep

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Speaker 4: of the Lakers in the West Final. That meant an

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Speaker 4: NBA playoff history, one hundred and fifty teams had a

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Speaker 4: three to nothing lead. They all had gone on to

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Speaker 4: win the series. Will the Miami Heat be the one

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Speaker 4: hundred and fifty first. They still had the Celtics three

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Speaker 4: to one, but Boston State alive taking Game four in

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Speaker 4: Miami won sixteen to ninety nine a dominant second half

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Speaker 4: that included an eighteen to nothing run.

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Speaker 12: They saw the Celtics go from down nine to up nine.

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Speaker 4: So it won't be two sweeps in the conference finals

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Speaker 4: in the NBA, but it could be in the NHL.

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Speaker 4: Florida three nothing on Carolina Game four tonight in Vegas

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Speaker 4: now have three zip on Dallas. The Golden Knights won

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Speaker 4: game three to four nothing that the Jets offseason worked out.

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Speaker 4: Aaron Rodgers had to take a seat for the injury.

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Speaker 4: NFL owners had to be extending the contractor Commissioner Roger

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Speaker 4: get Out through twenty twenty seven.

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Speaker 12: He's had the job since six.

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Speaker 2: John stash Hour Bloomberg Sport.

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Speaker 5: Live from coast to coast, from New York to San Francisco,

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Speaker 5: Boston to Washington, DC, nationwide on Sirius Exam, the Bloomberg

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Speaker 5: Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 5: Good morning. I'm Nathan Hagar.

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Speaker 2: Debt default inks may be starting to take hold for

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Speaker 2: markets at the Treasury Department's deadline now just eight days away.

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Speaker 2: In negotiations now to standstill in Washington, House Speaker Kevin

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Speaker 2: McCarthy summed it up after the latest round of talks yesterday.

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Speaker 2: We're not there yet. So I mean it's difficult because

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Speaker 2: you've got to be able to you take a couple

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Speaker 2: of days to write the bill, or you've got seventy

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Speaker 2: two hours here then you got the Senate to act.

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Speaker 2: I mean, this is why all the way back in

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Speaker 2: February we want to have an agreement. In Speaker McCarthy says,

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Speaker 2: a short term extension we'll leave things worse off than

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Speaker 2: they are right now. So let's take look at where

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Speaker 2: things stand. We're joined live by doctor Lindsay Newman, head

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Speaker 2: of Geopolitical thought Leadership at S and P Global Market Intelligence. Lindsay,

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Speaker 2: good morning. Where do you think things stand? Are the

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Speaker 2: odds going up that we actually see default in the US?

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Speaker 14: Thanks Nathan for having me on. So where things stand

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Speaker 14: is we know that Treasury Secretary Yellen sent a letter

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Speaker 14: updating Congress on Monday, saying essentially that with additional information

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Speaker 14: that they've had over the last week around spending, around

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Speaker 14: where things stand on the extraordinary measurements measures, it's highly

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Speaker 14: likely now that the Treasury will not be able to

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Speaker 14: satisfy its obligations if Congress does not act by early June,

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Speaker 14: and perhaps even as early as first of June. So

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Speaker 14: the X date appears to be rapidly approaching. And as

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Speaker 14: Kevin McCarthy said in that clip, they need at least

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Speaker 14: seventy two hours to review a bill in Congress before

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Speaker 14: they could potentially act, and the number of legislative days

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Speaker 14: are dwindling. We have seen both sides called the recent

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Speaker 14: meetings productive. When you and I last spoke, we talked

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Speaker 14: about how there was some horse train around certain dimensions

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Speaker 14: of spending. It now really seems like the conversation the

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Speaker 14: zone of negotiation is centering more broadly around this commitment

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Speaker 14: to spending limits to bring down the deficit. Republicans have

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Speaker 14: put forward their position and the limit, Save and Grow Act,

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Speaker 14: and we're here. Reportedly, White House has come back and

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Speaker 14: offered to freeze level spending at fiscal twenty twenty three levels,

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Speaker 14: and in terms of our baseline scenario, we're still at

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Speaker 14: the same place that we expect to see a deal

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Speaker 14: reached by that X state, something similar to the twenty

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Speaker 14: eleven scenario that we saw where Congress and the Executive

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Speaker 14: do agree to increase the debt limit in exchange for

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Speaker 14: future spending cuts. That approaching X state is going to

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Speaker 14: clarify the mind.

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Speaker 2: Yeah, we have heard some doubts, though, raised by some Republicans,

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Speaker 2: including the majority leader in the House, Steve Scalise, about

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Speaker 2: whether that X state of June first is really as

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Speaker 2: firm as the Treasury Secretary seem to indicate. Does that

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Speaker 2: give a little bit of wiggle room? How do you

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Speaker 2: view that X state that's been going around.

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Speaker 14: We we certainly need to take Treasury sec. Yellen at

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Speaker 14: her word. They're they are updating the analysis that they

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Speaker 14: are that they are evaluating over the course of the week,

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Speaker 14: as she committed to last week when she sent that letter,

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Speaker 14: and we've moved from likely to breach to highly likely

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Speaker 14: to to breach should they should they not see a

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Speaker 14: resolution by by that X state, And again she's saying

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Speaker 14: June first. Kevin McCarthy himself said that to reach a deal.

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Speaker 14: They need to get to June first, and the impacts

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Speaker 14: Yellen said Yellen highlighted in her letter, but we've we've

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Speaker 14: also heard from both sides that could provide severe I

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Speaker 14: think her phrasing was severe hardship for American families. It's

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Speaker 14: going to affect US global position. It's going to potentially

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Speaker 14: affect she said, so far as the US ability to

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Speaker 14: defend their national security interest. So as we get closer

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Speaker 14: to that X state, the radius of impact has the

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Speaker 14: potential to expand.

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Speaker 2: As you mentioned, there isn't a lot of legislative days

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Speaker 2: left on the calendar to get something done, and we're

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Speaker 2: expecting that lawmakers are going to be leaving town for

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Speaker 2: the Memorial Day holiday in the next couple of days. Here,

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Speaker 2: how do you see the timeline. Can they get something

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Speaker 2: of an agreement agreed to in time for lawmakers to act.

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Speaker 14: We're hearing that they have been prepared, they have had

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Speaker 14: notification that they may need to be prepared to be

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Speaker 14: called back from the weekend away and in fact have

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Speaker 14: it be a working weekend. The conversations we know at

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Speaker 14: the negotiating level between the White House and Republican leadership

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Speaker 14: are ongoing, and as you say, time is short. The

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Speaker 14: current requirements, the current procedural requirements allow that the House

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Speaker 14: has seventy two hours to review a bill. They could

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Speaker 14: of course waive that in this instance, but that's seventy

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Speaker 14: two hours before even approving legislation. And as you say,

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Speaker 14: and as we all know, just looking at the calendar,

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Speaker 14: where we stand, if the X date is in fact

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Speaker 14: as close to June versus as we're hearing.

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Speaker 2: Just about thirty seconds left here. But I got to

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Speaker 2: ask you about the presidential race. With Florida Governor Ron

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Speaker 2: DeSantis expected to make get official tonight, does that shake

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Speaker 2: things up in twenty four?

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Speaker 14: The impact of the debt ceiling on the election is

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Speaker 14: something that we are of course watching. Polling suggests that

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Speaker 14: voters are quite split on who they would blame should

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Speaker 14: we reach it default. Again, that's not our baseline scenario,

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Speaker 14: but they are quite split on who would be to blame.

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Speaker 14: And we know that the domestic economy is always a

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Speaker 14: key issue for presidential elections. The CBO office has the

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Speaker 14: non partisan CBO has said that in order to punt

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Speaker 14: on the debt limit beyond the twenty twenty four elections

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Speaker 14: would require really an unprecedented debt limit increase this time around,

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Speaker 14: So we have to expect that even if we do

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Speaker 14: resolve the debt limit as we expect this time around,

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Speaker 14: we're going to continue to talk about the debt limit

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Speaker 14: as twenty twenty four approaches.

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