Speaker 1: From the Bloomberg Interactive Burgers Studios. This is Bloomberg day
Speaker 1: Break for Wednesday, May twenty fourth.
Speaker 2: Coming up today, talks on the debt ceiling hit a
Speaker 2: wall with just eight days till a potential default.
Speaker 1: Ronda Santis is set to launch his presidential bid in
Speaker 1: an unconventional way.
Speaker 2: Britain's hot inflation fuels bets for higher.
Speaker 1: Rates and get ready to pay more if you share
Speaker 1: your Netflix account.
Speaker 3: The data cent for Donald Trump's New York criminal trial.
Speaker 3: Mayor Adams trying to suspend the city's right to shelter mandate.
Speaker 3: I'm John Tucker. Those stories straight ahead.
Speaker 4: I'm down Stash Aaron Sports, a walk off win for
Speaker 4: the Yankees, a loss for the Mets, NBA playoffs, the
Speaker 4: Celtics beat the heat.
Speaker 5: That's all straight ahead on Bloomberg day Break. The Business
Speaker 5: news You need to sturn your day in just one
Speaker 5: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg
Speaker 5: Business app, and everywhere you get your podcasts.
Speaker 2: Good morning, I'm Nathan Hager.
Speaker 1: And I'm Karen Moscow. Here are the stories we're following today.
Speaker 2: Well, Karen, we're coming off a losing session for equities.
Speaker 2: Both the S and P five hundred and the NANSDAK
Speaker 2: fell more than one percent yesterday with debt ceiling talks
Speaker 2: at an impass in Washington. After the latest round of
Speaker 2: negotiations on Capitol Hill, House Speaker Kevin McCarthy said they're
Speaker 2: not there yet.
Speaker 6: There are certain.
Speaker 2: Things that divide as and we know that is you
Speaker 2: cannot spend more money next year than we spend this year.
Speaker 2: Clear today, Speaker McCarthy and his negotiators say it's not
Speaker 2: clear when the two sides will meet again. White House
Speaker 2: spokeswoman Karine Jean Pierre says President Biden's team is willing
Speaker 2: to keep talking.
Speaker 7: Negotiations are hard, they're not easy. This is democracy in
Speaker 7: action as we have seen it, as we have looked
Speaker 7: at what's been going on these past couple of days
Speaker 7: and weeks, and what both sides need to understand is
Speaker 7: neither side is going to get exactly what they want.
Speaker 2: This standoff means any vote on a deal might not
Speaker 2: happen until next week. The Treasury Department has said it
Speaker 2: could start running out of cash as soon as next Thursday.
Speaker 1: Well Nathan at least one Republican says there's still time
Speaker 1: for a deal Congressman French Hill as the vice chairman
Speaker 1: of the House Financial Services Committee.
Speaker 8: No one wants to default on the Treasury securities. No
Speaker 8: one's proposing to do that. But unfortunately Congress uses a deadline.
Speaker 8: And so, like John Bahner told us years and years ago,
Speaker 8: Congress moved very slowly until it doesn't. And so we're
Speaker 8: working on this deadline, and we want to get a
Speaker 8: deal that's responsible and sensible, raises the debt sailing, but
Speaker 8: curtails the avalanche of spending.
Speaker 1: And ARKANSAA Republican french Hill may the comments on Bloomberg's
Speaker 1: Balance of Power catch the program weekday evenings at five
Speaker 1: pm Wall Street Time on Bloomberg Television.
Speaker 2: Well, Karen, we've heard many, including Treasury Secretary Janet Yellen Warren,
Speaker 2: about the catastrophic impact of debt default would have on
Speaker 2: the economy. One prominent investor, Rabeni Macro Associates CEO Nurial
Speaker 2: Rabini says the stock market would also feel major repercussions.
Speaker 9: We don't know yet. They may get to the last
Speaker 9: hour before there's an agreement, or it's possible that don't
Speaker 9: reach an agreement. If that doesn't happen, then the market
Speaker 9: is going to crash and that may force an agreement
Speaker 9: in the next few days.
Speaker 2: Nouriel Ravin made those comments to Bloomberg's Francine Lacua at
Speaker 2: the Cutter Economic Forum.
Speaker 1: Well, Nathan. Another major political story we're following, Ron DeSantis
Speaker 1: is apparently set to announce his run for president in
Speaker 1: a very non traditional manner, and Bloomberg's Ad Baxter has the.
Speaker 10: Story Desantas announcing it'll be a Twitter live stream with
Speaker 10: Elin Musk. That means the live audio will be available
Speaker 10: to Musk's more than one hundred and forty million followers.
Speaker 10: It also raises a number of issues, first to Santa's
Speaker 10: feeling there is a large audience, but then from Musk
Speaker 10: a rather interesting move as he shuffles the app to
Speaker 10: more partisan approach to political discourse and monitoring. Also raises
Speaker 10: issues for advertisers at a potential row with Disney. One
Speaker 10: of its largest advertisers in any case today is the
Speaker 10: Santa State amount is challenged to Donald Trump in San Francisco.
Speaker 10: I'm at Baxter Bloomberg Debreak.
Speaker 6: Thanks Ed.
Speaker 2: We got some major banking news this morning. Britain's anti
Speaker 2: trust agency says traders at five major banks colluded in
Speaker 2: chat rooms to swap sensitive information on UK bonds. The
Speaker 2: Competition and Markets Authority says City Group, Deutsche Bank, HSBC,
Speaker 2: Morgan Stanley and Royal Bank of Canada each unlawfully shared
Speaker 2: competitively sensitive information in chatrooms between two thousand and nine
Speaker 2: and twenty thirteen.
Speaker 1: Well, turning to the economy now, Nathan Britain's inflation rate
Speaker 1: remained much stronger than expected, with gauges and measuring services
Speaker 1: and core prices rising at the fastest pace in more
Speaker 1: than three decades. We get more from Bloomberg's Lizzie Burden
Speaker 1: in London.
Speaker 11: Eight point seven percent is the actual figure for inflation.
Speaker 11: The expectation from economists was eight point two percent. The
Speaker 11: Bank of England had seen eight point four percent. So,
Speaker 11: first of all, it goes back to questions about economists' models,
Speaker 11: and it's a point that the chief economists of the
Speaker 11: Bank of England, who Pill himself raised in Parliament yesterday.
Speaker 11: The Governor Andrew Bailey says, part of the reason for
Speaker 11: the problem with all the estimates is that they'd assumed
Speaker 11: inflation would fall as fast as it rose and it hasn't.
Speaker 1: And Bloomberg's Lizzie Burden in London says the figures will
Speaker 1: add pressure on the Bank of England to keep raising
Speaker 1: interest rates through the summer.
Speaker 2: We'll back here in the US Karen. The Fed issues
Speaker 2: the minutes from this month's policy meeting, when central bankers
Speaker 2: opted for another quarter point interest rate increase. Bloomberg's Annie
Speaker 2: del Judice reports.
Speaker 12: It's like reading tea leaves.
Speaker 13: It's the Fed dun raising interest rates Bloomberg Economics. As
Speaker 13: the minutes may reveal why Fedchair Jerown Pale appeared to
Speaker 13: downplay the impact of rising wages on inflation immediately following
Speaker 13: the policy meeting. Since then, he signaled he's inclined to
Speaker 13: pause tightening, citing credit conditions. The FED chair may face opposition,
Speaker 13: though other officials are suggesting a US central bank needs
Speaker 13: to do even more to stomp out inflation. Vinnie del
Speaker 13: Judice Bloomberg.
Speaker 1: Daybreak, Vinnie, thank you. And Netflix is bringing its crackdown
Speaker 1: on account sharing to the US. We get the story
Speaker 1: from Bloomberg's Charlie Bellett.
Speaker 6: Well Services outline procedure and costs for US customers who
Speaker 6: wish to continue sharing their accounts with people outside their household.
Speaker 6: According to a blog post by the company, the streaming
Speaker 6: TV leader will begin sending emails to customers who share
Speaker 6: their passwords. Netflix is giving them the option to share
Speaker 6: their account for an additional eight dollars a month, cheaper
Speaker 6: than a full price subscription. The crackdown began last year
Speaker 6: in Latin America, and it's a key part of Netflix's
Speaker 6: strategy to generate more revenue from users. In New York,
Speaker 6: Charlie Pellett Bloomberg Daybreak.
Speaker 2: Thank you, Charlie. Local headlines and a check of sports. Next,
Speaker 2: This is Bloomberg Time Now to look at some of
Speaker 2: the other stories making news in New York and around
Speaker 2: the world with Bloomberg's John Tucker.
Speaker 3: Good Morning, John, Good Morning, Nathan Is more migrants flood
Speaker 3: in New York City is asking a judge to suspend
Speaker 3: the right to shelter rule. More of this report from
Speaker 3: Bloomberg's Jeff Bellinger.
Speaker 12: Mayor Adams has asked judge to temporarily suspend the forty
Speaker 12: two year old court ruling requiring the city to shelter
Speaker 12: homeless adults. The request comes amid a surge in asylum
Speaker 12: seekers that is straining the municipal budget. The mandate has
Speaker 12: forced the city to turn to securing hotels to house migrants.
Speaker 12: It has opened one hundred and thirty emergency shelters and
Speaker 12: eight temporary facilities to manage the surge. New York's Department
Speaker 12: of Homeless Services is currently sheltering more than eighty one
Speaker 12: thousand individuals, a seventy five percent increase from the previous year.
Speaker 12: Jeff Bellinger, Bloomberg Radio.
Speaker 3: Donald Trump is scheduled to go on trial March twenty
Speaker 3: fifth in his criminal case in New York, where he's
Speaker 3: charged with falsifying business records in connection with hush money
Speaker 3: payments over alleged sexual encounters. Trump appeared by video before
Speaker 3: a New York State Supreme Court justice who set the
Speaker 3: trial date after going over an order that bar is
Speaker 3: the former president from publicly disclosing details about witnesses or
Speaker 3: other evidence. Chief Justice John Roberts, delivering his first public
Speaker 3: comments outside the court since September, he defended the institution
Speaker 3: against suggestions it was losing its legitimacy.
Speaker 8: I want to assure people that I am committed to
Speaker 8: making certain that we as a court adhere to the
Speaker 8: highest standards of conduct.
Speaker 3: Robert speaking at an awards ceremony the court facing slumping
Speaker 3: public approval, have been a barrage of misconduct allegations. Jeffrey Garrell,
Speaker 3: a longtime stakeholder in Manhattan's Flat Iron Building, and his
Speaker 3: group of investors have won an auction for the iconic landmark.
Speaker 3: It comes after years of battling over its future. Garrell,
Speaker 3: chairman of GFP Real Estate, been one hundred and sixty
Speaker 3: one million dollars for the wedge shaped tower. Winning the auction,
Speaker 3: he said the owners would consider converting either part or
Speaker 3: all of the building to apartments. And Martin Shirkelly, the
Speaker 3: former pharmaceutical chief executive officer, who has served almost seven
Speaker 3: years in prison for securities fraud, is now earning twenty
Speaker 3: five dollars a month twenty five hundred dollars amou of
Speaker 3: consulting for a law firm and living with the sister
Speaker 3: in Queens. The US Probation Office says the forty year
Speaker 3: old shore Kelly has had a mostly positive adjustment since
Speaker 3: being released from prison last year. Global News twenty four
Speaker 3: hours a day, Power five more than twenty seven hundred
Speaker 3: journalists and analysts in more than one hundred twenty countries.
Speaker 3: I'm John Tuckery, DC, is Bloomberg, Nathan.
Speaker 2: Thank you, John. Time now for the Bloomberg Sports Update.
Speaker 2: Good morning, John Stanshout, Good morning, Nathan.
Speaker 4: Yankees back at the stadium with much improved Baltimore. Yanks
Speaker 4: d Garrett Cole on the mound with the Orioles jumped
Speaker 4: in front board nothing. After the Yanks rally to tie,
Speaker 4: Baltimore reclaimed the lead, but the Yankees still like their
Speaker 4: chances going to the bottom of the ninth considering who
Speaker 4: they had leaning off.
Speaker 3: Oh dude, swinging a fly ball, It's t to left field.
Speaker 3: It is gonna go.
Speaker 2: Hayes watches it is done.
Speaker 14: Amo run.
Speaker 3: Harry Judge ties the game.
Speaker 2: We're a toll of o run just straight away.
Speaker 4: Let fieldfa and the Yankee scored again tenth inning. They
Speaker 4: won six to five. They've won five in a row twelve,
Speaker 4: with their last fifteen improving to thirty and twenty. Also
Speaker 4: in the Al East, Toronto ended a five game losing
Speaker 4: streak by winning that Tampa Bay twenty to one. The
Speaker 4: Mets five game win streak ended at Riglia seven to
Speaker 4: two loss to the Cubs when Denver finished the sweep
Speaker 4: of the Lakers in the West Final. That meant an
Speaker 4: NBA playoff history, one hundred and fifty teams had a
Speaker 4: three to nothing lead. They all had gone on to
Speaker 4: win the series. Will the Miami Heat be the one
Speaker 4: hundred and fifty first. They still had the Celtics three
Speaker 4: to one, but Boston State alive taking Game four in
Speaker 4: Miami won sixteen to ninety nine a dominant second half
Speaker 4: that included an eighteen to nothing run.
Speaker 12: They saw the Celtics go from down nine to up nine.
Speaker 4: So it won't be two sweeps in the conference finals
Speaker 4: in the NBA, but it could be in the NHL.
Speaker 4: Florida three nothing on Carolina Game four tonight in Vegas
Speaker 4: now have three zip on Dallas. The Golden Knights won
Speaker 4: game three to four nothing that the Jets offseason worked out.
Speaker 4: Aaron Rodgers had to take a seat for the injury.
Speaker 4: NFL owners had to be extending the contractor Commissioner Roger
Speaker 4: get Out through twenty twenty seven.
Speaker 12: He's had the job since six.
Speaker 2: John stash Hour Bloomberg Sport.
Speaker 5: Live from coast to coast, from New York to San Francisco,
Speaker 5: Boston to Washington, DC, nationwide on Sirius Exam, the Bloomberg
Speaker 5: Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 5: Good morning. I'm Nathan Hagar.
Speaker 2: Debt default inks may be starting to take hold for
Speaker 2: markets at the Treasury Department's deadline now just eight days away.
Speaker 2: In negotiations now to standstill in Washington, House Speaker Kevin
Speaker 2: McCarthy summed it up after the latest round of talks yesterday.
Speaker 2: We're not there yet. So I mean it's difficult because
Speaker 2: you've got to be able to you take a couple
Speaker 2: of days to write the bill, or you've got seventy
Speaker 2: two hours here then you got the Senate to act.
Speaker 2: I mean, this is why all the way back in
Speaker 2: February we want to have an agreement. In Speaker McCarthy says,
Speaker 2: a short term extension we'll leave things worse off than
Speaker 2: they are right now. So let's take look at where
Speaker 2: things stand. We're joined live by doctor Lindsay Newman, head
Speaker 2: of Geopolitical thought Leadership at S and P Global Market Intelligence. Lindsay,
Speaker 2: good morning. Where do you think things stand? Are the
Speaker 2: odds going up that we actually see default in the US?
Speaker 14: Thanks Nathan for having me on. So where things stand
Speaker 14: is we know that Treasury Secretary Yellen sent a letter
Speaker 14: updating Congress on Monday, saying essentially that with additional information
Speaker 14: that they've had over the last week around spending, around
Speaker 14: where things stand on the extraordinary measurements measures, it's highly
Speaker 14: likely now that the Treasury will not be able to
Speaker 14: satisfy its obligations if Congress does not act by early June,
Speaker 14: and perhaps even as early as first of June. So
Speaker 14: the X date appears to be rapidly approaching. And as
Speaker 14: Kevin McCarthy said in that clip, they need at least
Speaker 14: seventy two hours to review a bill in Congress before
Speaker 14: they could potentially act, and the number of legislative days
Speaker 14: are dwindling. We have seen both sides called the recent
Speaker 14: meetings productive. When you and I last spoke, we talked
Speaker 14: about how there was some horse train around certain dimensions
Speaker 14: of spending. It now really seems like the conversation the
Speaker 14: zone of negotiation is centering more broadly around this commitment
Speaker 14: to spending limits to bring down the deficit. Republicans have
Speaker 14: put forward their position and the limit, Save and Grow Act,
Speaker 14: and we're here. Reportedly, White House has come back and
Speaker 14: offered to freeze level spending at fiscal twenty twenty three levels,
Speaker 14: and in terms of our baseline scenario, we're still at
Speaker 14: the same place that we expect to see a deal
Speaker 14: reached by that X state, something similar to the twenty
Speaker 14: eleven scenario that we saw where Congress and the Executive
Speaker 14: do agree to increase the debt limit in exchange for
Speaker 14: future spending cuts. That approaching X state is going to
Speaker 14: clarify the mind.
Speaker 2: Yeah, we have heard some doubts, though, raised by some Republicans,
Speaker 2: including the majority leader in the House, Steve Scalise, about
Speaker 2: whether that X state of June first is really as
Speaker 2: firm as the Treasury Secretary seem to indicate. Does that
Speaker 2: give a little bit of wiggle room? How do you
Speaker 2: view that X state that's been going around.
Speaker 14: We we certainly need to take Treasury sec. Yellen at
Speaker 14: her word. They're they are updating the analysis that they
Speaker 14: are that they are evaluating over the course of the week,
Speaker 14: as she committed to last week when she sent that letter,
Speaker 14: and we've moved from likely to breach to highly likely
Speaker 14: to to breach should they should they not see a
Speaker 14: resolution by by that X state, And again she's saying
Speaker 14: June first. Kevin McCarthy himself said that to reach a deal.
Speaker 14: They need to get to June first, and the impacts
Speaker 14: Yellen said Yellen highlighted in her letter, but we've we've
Speaker 14: also heard from both sides that could provide severe I
Speaker 14: think her phrasing was severe hardship for American families. It's
Speaker 14: going to affect US global position. It's going to potentially
Speaker 14: affect she said, so far as the US ability to
Speaker 14: defend their national security interest. So as we get closer
Speaker 14: to that X state, the radius of impact has the
Speaker 14: potential to expand.
Speaker 2: As you mentioned, there isn't a lot of legislative days
Speaker 2: left on the calendar to get something done, and we're
Speaker 2: expecting that lawmakers are going to be leaving town for
Speaker 2: the Memorial Day holiday in the next couple of days. Here,
Speaker 2: how do you see the timeline. Can they get something
Speaker 2: of an agreement agreed to in time for lawmakers to act.
Speaker 14: We're hearing that they have been prepared, they have had
Speaker 14: notification that they may need to be prepared to be
Speaker 14: called back from the weekend away and in fact have
Speaker 14: it be a working weekend. The conversations we know at
Speaker 14: the negotiating level between the White House and Republican leadership
Speaker 14: are ongoing, and as you say, time is short. The
Speaker 14: current requirements, the current procedural requirements allow that the House
Speaker 14: has seventy two hours to review a bill. They could
Speaker 14: of course waive that in this instance, but that's seventy
Speaker 14: two hours before even approving legislation. And as you say,
Speaker 14: and as we all know, just looking at the calendar,
Speaker 14: where we stand, if the X date is in fact
Speaker 14: as close to June versus as we're hearing.
Speaker 2: Just about thirty seconds left here. But I got to
Speaker 2: ask you about the presidential race. With Florida Governor Ron
Speaker 2: DeSantis expected to make get official tonight, does that shake
Speaker 2: things up in twenty four?
Speaker 14: The impact of the debt ceiling on the election is
Speaker 14: something that we are of course watching. Polling suggests that
Speaker 14: voters are quite split on who they would blame should
Speaker 14: we reach it default. Again, that's not our baseline scenario,
Speaker 14: but they are quite split on who would be to blame.
Speaker 14: And we know that the domestic economy is always a
Speaker 14: key issue for presidential elections. The CBO office has the
Speaker 14: non partisan CBO has said that in order to punt
Speaker 14: on the debt limit beyond the twenty twenty four elections
Speaker 14: would require really an unprecedented debt limit increase this time around,
Speaker 14: So we have to expect that even if we do
Speaker 14: resolve the debt limit as we expect this time around,
Speaker 14: we're going to continue to talk about the debt limit
Speaker 14: as twenty twenty four approaches.
Speaker 2: This is Bloomberg day Break Today, your morning brief on
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