WEBVTT - Debt Ceiling Impasse; DeSantis to Launch Presidential Run

0:00:03.480 --> 0:00:06.720
<v Speaker 1>From the Bloomberg Interactive Burgers Studios. This is Bloomberg day

0:00:06.720 --> 0:00:08.600
<v Speaker 1>Break for Wednesday, May twenty fourth.

0:00:08.760 --> 0:00:11.600
<v Speaker 2>Coming up today, talks on the debt ceiling hit a

0:00:11.640 --> 0:00:14.400
<v Speaker 2>wall with just eight days till a potential default.

0:00:14.800 --> 0:00:17.760
<v Speaker 1>Ronda Santis is set to launch his presidential bid in

0:00:17.800 --> 0:00:19.400
<v Speaker 1>an unconventional way.

0:00:19.720 --> 0:00:23.000
<v Speaker 2>Britain's hot inflation fuels bets for higher.

0:00:22.760 --> 0:00:25.480
<v Speaker 1>Rates and get ready to pay more if you share

0:00:25.520 --> 0:00:26.520
<v Speaker 1>your Netflix account.

0:00:26.720 --> 0:00:29.560
<v Speaker 3>The data cent for Donald Trump's New York criminal trial.

0:00:29.920 --> 0:00:33.400
<v Speaker 3>Mayor Adams trying to suspend the city's right to shelter mandate.

0:00:33.600 --> 0:00:36.080
<v Speaker 3>I'm John Tucker. Those stories straight ahead.

0:00:35.760 --> 0:00:38.159
<v Speaker 4>I'm down Stash Aaron Sports, a walk off win for

0:00:38.200 --> 0:00:40.920
<v Speaker 4>the Yankees, a loss for the Mets, NBA playoffs, the

0:00:40.960 --> 0:00:42.040
<v Speaker 4>Celtics beat the heat.

0:00:43.720 --> 0:00:47.120
<v Speaker 5>That's all straight ahead on Bloomberg day Break. The Business

0:00:47.159 --> 0:00:49.599
<v Speaker 5>news You need to sturn your day in just one

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

0:00:54.240 --> 0:00:56.920
<v Speaker 5>Business app, and everywhere you get your podcasts.

0:01:00.000 --> 0:01:01.680
<v Speaker 2>Good morning, I'm Nathan Hager.

0:01:01.600 --> 0:01:04.840
<v Speaker 1>And I'm Karen Moscow. Here are the stories we're following today.

0:01:05.160 --> 0:01:07.800
<v Speaker 2>Well, Karen, we're coming off a losing session for equities.

0:01:07.800 --> 0:01:10.119
<v Speaker 2>Both the S and P five hundred and the NANSDAK

0:01:10.160 --> 0:01:13.440
<v Speaker 2>fell more than one percent yesterday with debt ceiling talks

0:01:13.480 --> 0:01:16.520
<v Speaker 2>at an impass in Washington. After the latest round of

0:01:16.560 --> 0:01:20.040
<v Speaker 2>negotiations on Capitol Hill, House Speaker Kevin McCarthy said they're

0:01:20.080 --> 0:01:21.040
<v Speaker 2>not there yet.

0:01:21.400 --> 0:01:22.240
<v Speaker 6>There are certain.

0:01:22.000 --> 0:01:24.399
<v Speaker 2>Things that divide as and we know that is you

0:01:24.520 --> 0:01:27.680
<v Speaker 2>cannot spend more money next year than we spend this year.

0:01:27.959 --> 0:01:32.360
<v Speaker 2>Clear today, Speaker McCarthy and his negotiators say it's not

0:01:32.360 --> 0:01:34.800
<v Speaker 2>clear when the two sides will meet again. White House

0:01:34.800 --> 0:01:38.080
<v Speaker 2>spokeswoman Karine Jean Pierre says President Biden's team is willing

0:01:38.120 --> 0:01:38.759
<v Speaker 2>to keep talking.

0:01:39.160 --> 0:01:43.040
<v Speaker 7>Negotiations are hard, they're not easy. This is democracy in

0:01:43.160 --> 0:01:45.360
<v Speaker 7>action as we have seen it, as we have looked

0:01:45.400 --> 0:01:47.440
<v Speaker 7>at what's been going on these past couple of days

0:01:47.440 --> 0:01:50.760
<v Speaker 7>and weeks, and what both sides need to understand is

0:01:50.880 --> 0:01:53.720
<v Speaker 7>neither side is going to get exactly what they want.

0:01:53.960 --> 0:01:56.240
<v Speaker 2>This standoff means any vote on a deal might not

0:01:56.320 --> 0:01:58.960
<v Speaker 2>happen until next week. The Treasury Department has said it

0:01:59.000 --> 0:02:01.960
<v Speaker 2>could start running out of cash as soon as next Thursday.

0:02:02.360 --> 0:02:05.280
<v Speaker 1>Well Nathan at least one Republican says there's still time

0:02:05.320 --> 0:02:08.560
<v Speaker 1>for a deal Congressman French Hill as the vice chairman

0:02:08.600 --> 0:02:10.560
<v Speaker 1>of the House Financial Services Committee.

0:02:10.800 --> 0:02:13.640
<v Speaker 8>No one wants to default on the Treasury securities. No

0:02:13.720 --> 0:02:18.640
<v Speaker 8>one's proposing to do that. But unfortunately Congress uses a deadline.

0:02:18.760 --> 0:02:21.440
<v Speaker 8>And so, like John Bahner told us years and years ago,

0:02:21.520 --> 0:02:24.839
<v Speaker 8>Congress moved very slowly until it doesn't. And so we're

0:02:24.880 --> 0:02:26.760
<v Speaker 8>working on this deadline, and we want to get a

0:02:26.760 --> 0:02:30.160
<v Speaker 8>deal that's responsible and sensible, raises the debt sailing, but

0:02:30.280 --> 0:02:32.560
<v Speaker 8>curtails the avalanche of spending.

0:02:32.440 --> 0:02:35.760
<v Speaker 1>And ARKANSAA Republican french Hill may the comments on Bloomberg's

0:02:35.760 --> 0:02:38.880
<v Speaker 1>Balance of Power catch the program weekday evenings at five

0:02:38.919 --> 0:02:41.440
<v Speaker 1>pm Wall Street Time on Bloomberg Television.

0:02:41.560 --> 0:02:44.760
<v Speaker 2>Well, Karen, we've heard many, including Treasury Secretary Janet Yellen Warren,

0:02:44.840 --> 0:02:47.400
<v Speaker 2>about the catastrophic impact of debt default would have on

0:02:47.440 --> 0:02:51.799
<v Speaker 2>the economy. One prominent investor, Rabeni Macro Associates CEO Nurial

0:02:51.880 --> 0:02:55.720
<v Speaker 2>Rabini says the stock market would also feel major repercussions.

0:02:55.960 --> 0:02:59.360
<v Speaker 9>We don't know yet. They may get to the last

0:02:59.400 --> 0:03:02.639
<v Speaker 9>hour before there's an agreement, or it's possible that don't

0:03:02.639 --> 0:03:05.480
<v Speaker 9>reach an agreement. If that doesn't happen, then the market

0:03:05.520 --> 0:03:08.000
<v Speaker 9>is going to crash and that may force an agreement

0:03:08.040 --> 0:03:09.079
<v Speaker 9>in the next few days.

0:03:09.639 --> 0:03:12.640
<v Speaker 2>Nouriel Ravin made those comments to Bloomberg's Francine Lacua at

0:03:12.680 --> 0:03:14.040
<v Speaker 2>the Cutter Economic Forum.

0:03:14.320 --> 0:03:18.520
<v Speaker 1>Well, Nathan. Another major political story we're following, Ron DeSantis

0:03:18.560 --> 0:03:21.480
<v Speaker 1>is apparently set to announce his run for president in

0:03:21.520 --> 0:03:24.960
<v Speaker 1>a very non traditional manner, and Bloomberg's Ad Baxter has the.

0:03:24.919 --> 0:03:28.760
<v Speaker 10>Story Desantas announcing it'll be a Twitter live stream with

0:03:28.840 --> 0:03:31.600
<v Speaker 10>Elin Musk. That means the live audio will be available

0:03:31.639 --> 0:03:34.400
<v Speaker 10>to Musk's more than one hundred and forty million followers.

0:03:34.800 --> 0:03:37.280
<v Speaker 10>It also raises a number of issues, first to Santa's

0:03:37.280 --> 0:03:39.640
<v Speaker 10>feeling there is a large audience, but then from Musk

0:03:40.080 --> 0:03:42.600
<v Speaker 10>a rather interesting move as he shuffles the app to

0:03:42.680 --> 0:03:47.160
<v Speaker 10>more partisan approach to political discourse and monitoring. Also raises

0:03:47.200 --> 0:03:51.120
<v Speaker 10>issues for advertisers at a potential row with Disney. One

0:03:51.160 --> 0:03:54.840
<v Speaker 10>of its largest advertisers in any case today is the

0:03:54.920 --> 0:03:58.520
<v Speaker 10>Santa State amount is challenged to Donald Trump in San Francisco.

0:03:58.600 --> 0:04:00.000
<v Speaker 10>I'm at Baxter Bloomberg Debreak.

0:04:00.200 --> 0:04:00.600
<v Speaker 6>Thanks Ed.

0:04:00.600 --> 0:04:03.560
<v Speaker 2>We got some major banking news this morning. Britain's anti

0:04:03.600 --> 0:04:07.240
<v Speaker 2>trust agency says traders at five major banks colluded in

0:04:07.360 --> 0:04:11.120
<v Speaker 2>chat rooms to swap sensitive information on UK bonds. The

0:04:11.160 --> 0:04:15.200
<v Speaker 2>Competition and Markets Authority says City Group, Deutsche Bank, HSBC,

0:04:15.480 --> 0:04:19.080
<v Speaker 2>Morgan Stanley and Royal Bank of Canada each unlawfully shared

0:04:19.080 --> 0:04:23.000
<v Speaker 2>competitively sensitive information in chatrooms between two thousand and nine

0:04:23.040 --> 0:04:23.919
<v Speaker 2>and twenty thirteen.

0:04:24.279 --> 0:04:27.160
<v Speaker 1>Well, turning to the economy now, Nathan Britain's inflation rate

0:04:27.240 --> 0:04:31.000
<v Speaker 1>remained much stronger than expected, with gauges and measuring services

0:04:31.000 --> 0:04:34.080
<v Speaker 1>and core prices rising at the fastest pace in more

0:04:34.120 --> 0:04:37.400
<v Speaker 1>than three decades. We get more from Bloomberg's Lizzie Burden

0:04:37.520 --> 0:04:38.480
<v Speaker 1>in London.

0:04:38.480 --> 0:04:42.080
<v Speaker 11>Eight point seven percent is the actual figure for inflation.

0:04:42.640 --> 0:04:45.640
<v Speaker 11>The expectation from economists was eight point two percent. The

0:04:45.640 --> 0:04:48.680
<v Speaker 11>Bank of England had seen eight point four percent. So,

0:04:48.800 --> 0:04:51.560
<v Speaker 11>first of all, it goes back to questions about economists' models,

0:04:51.600 --> 0:04:53.280
<v Speaker 11>and it's a point that the chief economists of the

0:04:53.320 --> 0:04:56.840
<v Speaker 11>Bank of England, who Pill himself raised in Parliament yesterday.

0:04:57.040 --> 0:04:59.680
<v Speaker 11>The Governor Andrew Bailey says, part of the reason for

0:05:00.160 --> 0:05:03.720
<v Speaker 11>the problem with all the estimates is that they'd assumed

0:05:03.760 --> 0:05:06.640
<v Speaker 11>inflation would fall as fast as it rose and it hasn't.

0:05:06.839 --> 0:05:09.360
<v Speaker 1>And Bloomberg's Lizzie Burden in London says the figures will

0:05:09.400 --> 0:05:11.479
<v Speaker 1>add pressure on the Bank of England to keep raising

0:05:11.480 --> 0:05:12.800
<v Speaker 1>interest rates through the summer.

0:05:12.880 --> 0:05:14.880
<v Speaker 2>We'll back here in the US Karen. The Fed issues

0:05:14.880 --> 0:05:17.560
<v Speaker 2>the minutes from this month's policy meeting, when central bankers

0:05:17.560 --> 0:05:20.840
<v Speaker 2>opted for another quarter point interest rate increase. Bloomberg's Annie

0:05:20.839 --> 0:05:22.320
<v Speaker 2>del Judice reports.

0:05:22.160 --> 0:05:23.480
<v Speaker 12>It's like reading tea leaves.

0:05:23.520 --> 0:05:26.800
<v Speaker 13>It's the Fed dun raising interest rates Bloomberg Economics. As

0:05:26.839 --> 0:05:29.760
<v Speaker 13>the minutes may reveal why Fedchair Jerown Pale appeared to

0:05:29.839 --> 0:05:34.000
<v Speaker 13>downplay the impact of rising wages on inflation immediately following

0:05:34.040 --> 0:05:37.240
<v Speaker 13>the policy meeting. Since then, he signaled he's inclined to

0:05:37.360 --> 0:05:41.840
<v Speaker 13>pause tightening, citing credit conditions. The FED chair may face opposition,

0:05:41.880 --> 0:05:45.280
<v Speaker 13>though other officials are suggesting a US central bank needs

0:05:45.320 --> 0:05:48.880
<v Speaker 13>to do even more to stomp out inflation. Vinnie del

0:05:49.000 --> 0:05:50.240
<v Speaker 13>Judice Bloomberg.

0:05:49.880 --> 0:05:53.719
<v Speaker 1>Daybreak, Vinnie, thank you. And Netflix is bringing its crackdown

0:05:53.800 --> 0:05:56.360
<v Speaker 1>on account sharing to the US. We get the story

0:05:56.360 --> 0:05:58.000
<v Speaker 1>from Bloomberg's Charlie Bellett.

0:05:58.120 --> 0:06:02.960
<v Speaker 6>Well Services outline procedure and costs for US customers who

0:06:03.000 --> 0:06:07.320
<v Speaker 6>wish to continue sharing their accounts with people outside their household.

0:06:07.720 --> 0:06:10.480
<v Speaker 6>According to a blog post by the company, the streaming

0:06:10.520 --> 0:06:14.280
<v Speaker 6>TV leader will begin sending emails to customers who share

0:06:14.320 --> 0:06:18.039
<v Speaker 6>their passwords. Netflix is giving them the option to share

0:06:18.080 --> 0:06:21.320
<v Speaker 6>their account for an additional eight dollars a month, cheaper

0:06:21.360 --> 0:06:25.440
<v Speaker 6>than a full price subscription. The crackdown began last year

0:06:25.440 --> 0:06:28.479
<v Speaker 6>in Latin America, and it's a key part of Netflix's

0:06:28.560 --> 0:06:32.680
<v Speaker 6>strategy to generate more revenue from users. In New York,

0:06:32.960 --> 0:06:34.840
<v Speaker 6>Charlie Pellett Bloomberg Daybreak.

0:06:34.920 --> 0:06:37.960
<v Speaker 2>Thank you, Charlie. Local headlines and a check of sports. Next,

0:06:38.080 --> 0:06:44.000
<v Speaker 2>This is Bloomberg Time Now to look at some of

0:06:44.000 --> 0:06:46.239
<v Speaker 2>the other stories making news in New York and around

0:06:46.279 --> 0:06:47.720
<v Speaker 2>the world with Bloomberg's John Tucker.

0:06:47.720 --> 0:06:50.599
<v Speaker 3>Good Morning, John, Good Morning, Nathan Is more migrants flood

0:06:50.600 --> 0:06:53.719
<v Speaker 3>in New York City is asking a judge to suspend

0:06:53.720 --> 0:06:56.360
<v Speaker 3>the right to shelter rule. More of this report from

0:06:56.400 --> 0:06:57.880
<v Speaker 3>Bloomberg's Jeff Bellinger.

0:06:58.360 --> 0:07:02.400
<v Speaker 12>Mayor Adams has asked judge to temporarily suspend the forty

0:07:02.400 --> 0:07:05.320
<v Speaker 12>two year old court ruling requiring the city to shelter

0:07:05.440 --> 0:07:09.080
<v Speaker 12>homeless adults. The request comes amid a surge in asylum

0:07:09.120 --> 0:07:12.560
<v Speaker 12>seekers that is straining the municipal budget. The mandate has

0:07:12.600 --> 0:07:16.200
<v Speaker 12>forced the city to turn to securing hotels to house migrants.

0:07:16.440 --> 0:07:19.360
<v Speaker 12>It has opened one hundred and thirty emergency shelters and

0:07:19.480 --> 0:07:23.400
<v Speaker 12>eight temporary facilities to manage the surge. New York's Department

0:07:23.440 --> 0:07:26.680
<v Speaker 12>of Homeless Services is currently sheltering more than eighty one

0:07:26.760 --> 0:07:31.360
<v Speaker 12>thousand individuals, a seventy five percent increase from the previous year.

0:07:31.840 --> 0:07:33.680
<v Speaker 12>Jeff Bellinger, Bloomberg Radio.

0:07:33.800 --> 0:07:36.360
<v Speaker 3>Donald Trump is scheduled to go on trial March twenty

0:07:36.360 --> 0:07:38.640
<v Speaker 3>fifth in his criminal case in New York, where he's

0:07:38.720 --> 0:07:42.320
<v Speaker 3>charged with falsifying business records in connection with hush money

0:07:42.320 --> 0:07:46.559
<v Speaker 3>payments over alleged sexual encounters. Trump appeared by video before

0:07:46.600 --> 0:07:48.920
<v Speaker 3>a New York State Supreme Court justice who set the

0:07:48.960 --> 0:07:52.080
<v Speaker 3>trial date after going over an order that bar is

0:07:52.120 --> 0:07:56.520
<v Speaker 3>the former president from publicly disclosing details about witnesses or

0:07:56.560 --> 0:08:00.480
<v Speaker 3>other evidence. Chief Justice John Roberts, delivering his first public

0:08:00.520 --> 0:08:04.080
<v Speaker 3>comments outside the court since September, he defended the institution

0:08:04.200 --> 0:08:06.840
<v Speaker 3>against suggestions it was losing its legitimacy.

0:08:07.680 --> 0:08:10.680
<v Speaker 8>I want to assure people that I am committed to

0:08:10.760 --> 0:08:13.400
<v Speaker 8>making certain that we as a court adhere to the

0:08:13.480 --> 0:08:15.080
<v Speaker 8>highest standards of conduct.

0:08:15.400 --> 0:08:19.160
<v Speaker 3>Robert speaking at an awards ceremony the court facing slumping

0:08:19.200 --> 0:08:23.520
<v Speaker 3>public approval, have been a barrage of misconduct allegations. Jeffrey Garrell,

0:08:23.640 --> 0:08:27.400
<v Speaker 3>a longtime stakeholder in Manhattan's Flat Iron Building, and his

0:08:27.480 --> 0:08:31.520
<v Speaker 3>group of investors have won an auction for the iconic landmark.

0:08:31.880 --> 0:08:34.760
<v Speaker 3>It comes after years of battling over its future. Garrell,

0:08:34.880 --> 0:08:37.600
<v Speaker 3>chairman of GFP Real Estate, been one hundred and sixty

0:08:37.640 --> 0:08:40.760
<v Speaker 3>one million dollars for the wedge shaped tower. Winning the auction,

0:08:41.200 --> 0:08:44.000
<v Speaker 3>he said the owners would consider converting either part or

0:08:44.040 --> 0:08:48.240
<v Speaker 3>all of the building to apartments. And Martin Shirkelly, the

0:08:48.280 --> 0:08:51.400
<v Speaker 3>former pharmaceutical chief executive officer, who has served almost seven

0:08:51.480 --> 0:08:54.760
<v Speaker 3>years in prison for securities fraud, is now earning twenty

0:08:54.760 --> 0:08:57.520
<v Speaker 3>five dollars a month twenty five hundred dollars amou of

0:08:57.600 --> 0:09:00.439
<v Speaker 3>consulting for a law firm and living with the sister

0:09:00.520 --> 0:09:03.280
<v Speaker 3>in Queens. The US Probation Office says the forty year

0:09:03.280 --> 0:09:06.680
<v Speaker 3>old shore Kelly has had a mostly positive adjustment since

0:09:06.720 --> 0:09:10.280
<v Speaker 3>being released from prison last year. Global News twenty four

0:09:10.320 --> 0:09:12.840
<v Speaker 3>hours a day, Power five more than twenty seven hundred

0:09:12.880 --> 0:09:16.040
<v Speaker 3>journalists and analysts in more than one hundred twenty countries.

0:09:16.160 --> 0:09:18.480
<v Speaker 3>I'm John Tuckery, DC, is Bloomberg, Nathan.

0:09:18.640 --> 0:09:25.720
<v Speaker 2>Thank you, John. Time now for the Bloomberg Sports Update.

0:09:25.760 --> 0:09:27.600
<v Speaker 2>Good morning, John Stanshout, Good morning, Nathan.

0:09:27.679 --> 0:09:30.680
<v Speaker 4>Yankees back at the stadium with much improved Baltimore. Yanks

0:09:30.840 --> 0:09:33.600
<v Speaker 4>d Garrett Cole on the mound with the Orioles jumped

0:09:33.600 --> 0:09:35.680
<v Speaker 4>in front board nothing. After the Yanks rally to tie,

0:09:35.679 --> 0:09:38.360
<v Speaker 4>Baltimore reclaimed the lead, but the Yankees still like their

0:09:38.440 --> 0:09:41.439
<v Speaker 4>chances going to the bottom of the ninth considering who

0:09:41.440 --> 0:09:42.360
<v Speaker 4>they had leaning off.

0:09:42.360 --> 0:09:46.120
<v Speaker 3>Oh dude, swinging a fly ball, It's t to left field.

0:09:46.320 --> 0:09:47.040
<v Speaker 3>It is gonna go.

0:09:47.480 --> 0:09:49.760
<v Speaker 2>Hayes watches it is done.

0:09:50.000 --> 0:09:50.880
<v Speaker 14>Amo run.

0:09:52.640 --> 0:09:54.560
<v Speaker 3>Harry Judge ties the game.

0:09:54.960 --> 0:09:57.400
<v Speaker 2>We're a toll of o run just straight away.

0:09:57.520 --> 0:10:00.920
<v Speaker 4>Let fieldfa and the Yankee scored again tenth inning. They

0:10:00.960 --> 0:10:03.839
<v Speaker 4>won six to five. They've won five in a row twelve,

0:10:03.880 --> 0:10:07.480
<v Speaker 4>with their last fifteen improving to thirty and twenty. Also

0:10:07.600 --> 0:10:10.160
<v Speaker 4>in the Al East, Toronto ended a five game losing

0:10:10.200 --> 0:10:13.839
<v Speaker 4>streak by winning that Tampa Bay twenty to one. The

0:10:13.920 --> 0:10:16.280
<v Speaker 4>Mets five game win streak ended at Riglia seven to

0:10:16.280 --> 0:10:19.240
<v Speaker 4>two loss to the Cubs when Denver finished the sweep

0:10:19.280 --> 0:10:20.920
<v Speaker 4>of the Lakers in the West Final. That meant an

0:10:21.000 --> 0:10:24.280
<v Speaker 4>NBA playoff history, one hundred and fifty teams had a

0:10:24.360 --> 0:10:26.719
<v Speaker 4>three to nothing lead. They all had gone on to

0:10:26.800 --> 0:10:29.240
<v Speaker 4>win the series. Will the Miami Heat be the one

0:10:29.320 --> 0:10:31.440
<v Speaker 4>hundred and fifty first. They still had the Celtics three

0:10:31.480 --> 0:10:34.000
<v Speaker 4>to one, but Boston State alive taking Game four in

0:10:34.080 --> 0:10:37.160
<v Speaker 4>Miami won sixteen to ninety nine a dominant second half

0:10:37.520 --> 0:10:39.480
<v Speaker 4>that included an eighteen to nothing run.

0:10:39.800 --> 0:10:42.400
<v Speaker 12>They saw the Celtics go from down nine to up nine.

0:10:42.440 --> 0:10:45.000
<v Speaker 4>So it won't be two sweeps in the conference finals

0:10:45.080 --> 0:10:48.000
<v Speaker 4>in the NBA, but it could be in the NHL.

0:10:48.200 --> 0:10:51.760
<v Speaker 4>Florida three nothing on Carolina Game four tonight in Vegas

0:10:51.880 --> 0:10:54.760
<v Speaker 4>now have three zip on Dallas. The Golden Knights won

0:10:54.840 --> 0:10:57.600
<v Speaker 4>game three to four nothing that the Jets offseason worked out.

0:10:57.679 --> 0:11:00.440
<v Speaker 4>Aaron Rodgers had to take a seat for the injury.

0:11:00.520 --> 0:11:03.000
<v Speaker 4>NFL owners had to be extending the contractor Commissioner Roger

0:11:03.080 --> 0:11:04.560
<v Speaker 4>get Out through twenty twenty seven.

0:11:04.600 --> 0:11:06.080
<v Speaker 12>He's had the job since six.

0:11:06.600 --> 0:11:08.520
<v Speaker 2>John stash Hour Bloomberg Sport.

0:11:11.240 --> 0:11:14.599
<v Speaker 5>Live from coast to coast, from New York to San Francisco,

0:11:14.840 --> 0:11:19.240
<v Speaker 5>Boston to Washington, DC, nationwide on Sirius Exam, the Bloomberg

0:11:19.320 --> 0:11:23.360
<v Speaker 5>Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

0:11:24.520 --> 0:11:25.880
<v Speaker 5>Good morning. I'm Nathan Hagar.

0:11:26.040 --> 0:11:29.120
<v Speaker 2>Debt default inks may be starting to take hold for

0:11:29.240 --> 0:11:32.480
<v Speaker 2>markets at the Treasury Department's deadline now just eight days away.

0:11:32.480 --> 0:11:36.440
<v Speaker 2>In negotiations now to standstill in Washington, House Speaker Kevin

0:11:36.480 --> 0:11:39.280
<v Speaker 2>McCarthy summed it up after the latest round of talks yesterday.

0:11:39.640 --> 0:11:42.920
<v Speaker 2>We're not there yet. So I mean it's difficult because

0:11:42.960 --> 0:11:45.320
<v Speaker 2>you've got to be able to you take a couple

0:11:45.320 --> 0:11:47.319
<v Speaker 2>of days to write the bill, or you've got seventy

0:11:47.320 --> 0:11:49.560
<v Speaker 2>two hours here then you got the Senate to act.

0:11:49.600 --> 0:11:52.240
<v Speaker 2>I mean, this is why all the way back in

0:11:52.280 --> 0:11:55.920
<v Speaker 2>February we want to have an agreement. In Speaker McCarthy says,

0:11:55.960 --> 0:11:58.120
<v Speaker 2>a short term extension we'll leave things worse off than

0:11:58.160 --> 0:12:00.600
<v Speaker 2>they are right now. So let's take look at where

0:12:00.679 --> 0:12:03.640
<v Speaker 2>things stand. We're joined live by doctor Lindsay Newman, head

0:12:03.679 --> 0:12:08.200
<v Speaker 2>of Geopolitical thought Leadership at S and P Global Market Intelligence. Lindsay,

0:12:08.280 --> 0:12:10.880
<v Speaker 2>good morning. Where do you think things stand? Are the

0:12:10.920 --> 0:12:14.080
<v Speaker 2>odds going up that we actually see default in the US?

0:12:15.160 --> 0:12:17.400
<v Speaker 14>Thanks Nathan for having me on. So where things stand

0:12:17.520 --> 0:12:20.520
<v Speaker 14>is we know that Treasury Secretary Yellen sent a letter

0:12:20.679 --> 0:12:24.360
<v Speaker 14>updating Congress on Monday, saying essentially that with additional information

0:12:24.840 --> 0:12:26.960
<v Speaker 14>that they've had over the last week around spending, around

0:12:27.000 --> 0:12:30.960
<v Speaker 14>where things stand on the extraordinary measurements measures, it's highly

0:12:31.160 --> 0:12:33.319
<v Speaker 14>likely now that the Treasury will not be able to

0:12:33.400 --> 0:12:37.600
<v Speaker 14>satisfy its obligations if Congress does not act by early June,

0:12:37.679 --> 0:12:39.719
<v Speaker 14>and perhaps even as early as first of June. So

0:12:39.800 --> 0:12:42.800
<v Speaker 14>the X date appears to be rapidly approaching. And as

0:12:42.920 --> 0:12:46.199
<v Speaker 14>Kevin McCarthy said in that clip, they need at least

0:12:46.200 --> 0:12:48.520
<v Speaker 14>seventy two hours to review a bill in Congress before

0:12:48.559 --> 0:12:51.480
<v Speaker 14>they could potentially act, and the number of legislative days

0:12:51.559 --> 0:12:55.199
<v Speaker 14>are dwindling. We have seen both sides called the recent

0:12:55.280 --> 0:12:58.640
<v Speaker 14>meetings productive. When you and I last spoke, we talked

0:12:58.640 --> 0:13:01.959
<v Speaker 14>about how there was some horse train around certain dimensions

0:13:02.040 --> 0:13:05.160
<v Speaker 14>of spending. It now really seems like the conversation the

0:13:05.280 --> 0:13:08.920
<v Speaker 14>zone of negotiation is centering more broadly around this commitment

0:13:09.000 --> 0:13:11.800
<v Speaker 14>to spending limits to bring down the deficit. Republicans have

0:13:11.920 --> 0:13:14.960
<v Speaker 14>put forward their position and the limit, Save and Grow Act,

0:13:15.040 --> 0:13:17.400
<v Speaker 14>and we're here. Reportedly, White House has come back and

0:13:17.520 --> 0:13:21.720
<v Speaker 14>offered to freeze level spending at fiscal twenty twenty three levels,

0:13:22.240 --> 0:13:24.240
<v Speaker 14>and in terms of our baseline scenario, we're still at

0:13:24.280 --> 0:13:26.840
<v Speaker 14>the same place that we expect to see a deal

0:13:26.960 --> 0:13:30.200
<v Speaker 14>reached by that X state, something similar to the twenty

0:13:30.240 --> 0:13:32.840
<v Speaker 14>eleven scenario that we saw where Congress and the Executive

0:13:32.920 --> 0:13:36.439
<v Speaker 14>do agree to increase the debt limit in exchange for

0:13:36.679 --> 0:13:39.920
<v Speaker 14>future spending cuts. That approaching X state is going to

0:13:39.960 --> 0:13:40.760
<v Speaker 14>clarify the mind.

0:13:41.160 --> 0:13:44.439
<v Speaker 2>Yeah, we have heard some doubts, though, raised by some Republicans,

0:13:44.520 --> 0:13:47.720
<v Speaker 2>including the majority leader in the House, Steve Scalise, about

0:13:47.760 --> 0:13:50.600
<v Speaker 2>whether that X state of June first is really as

0:13:50.720 --> 0:13:53.959
<v Speaker 2>firm as the Treasury Secretary seem to indicate. Does that

0:13:54.000 --> 0:13:56.480
<v Speaker 2>give a little bit of wiggle room? How do you

0:13:56.679 --> 0:13:59.120
<v Speaker 2>view that X state that's been going around.

0:14:01.120 --> 0:14:04.280
<v Speaker 14>We we certainly need to take Treasury sec. Yellen at

0:14:04.320 --> 0:14:07.080
<v Speaker 14>her word. They're they are updating the analysis that they

0:14:07.120 --> 0:14:09.240
<v Speaker 14>are that they are evaluating over the course of the week,

0:14:09.320 --> 0:14:12.360
<v Speaker 14>as she committed to last week when she sent that letter,

0:14:12.400 --> 0:14:15.319
<v Speaker 14>and we've moved from likely to breach to highly likely

0:14:15.640 --> 0:14:19.840
<v Speaker 14>to to breach should they should they not see a

0:14:20.000 --> 0:14:23.240
<v Speaker 14>resolution by by that X state, And again she's saying

0:14:23.320 --> 0:14:26.360
<v Speaker 14>June first. Kevin McCarthy himself said that to reach a deal.

0:14:26.400 --> 0:14:28.920
<v Speaker 14>They need to get to June first, and the impacts

0:14:29.480 --> 0:14:32.520
<v Speaker 14>Yellen said Yellen highlighted in her letter, but we've we've

0:14:32.560 --> 0:14:36.280
<v Speaker 14>also heard from both sides that could provide severe I

0:14:36.320 --> 0:14:39.040
<v Speaker 14>think her phrasing was severe hardship for American families. It's

0:14:39.040 --> 0:14:41.840
<v Speaker 14>going to affect US global position. It's going to potentially

0:14:42.360 --> 0:14:45.120
<v Speaker 14>affect she said, so far as the US ability to

0:14:45.200 --> 0:14:48.600
<v Speaker 14>defend their national security interest. So as we get closer

0:14:48.640 --> 0:14:51.240
<v Speaker 14>to that X state, the radius of impact has the

0:14:51.320 --> 0:14:52.520
<v Speaker 14>potential to expand.

0:14:53.040 --> 0:14:55.720
<v Speaker 2>As you mentioned, there isn't a lot of legislative days

0:14:55.880 --> 0:14:58.040
<v Speaker 2>left on the calendar to get something done, and we're

0:14:58.080 --> 0:15:00.760
<v Speaker 2>expecting that lawmakers are going to be leaving town for

0:15:00.880 --> 0:15:04.080
<v Speaker 2>the Memorial Day holiday in the next couple of days. Here,

0:15:04.240 --> 0:15:07.200
<v Speaker 2>how do you see the timeline. Can they get something

0:15:07.360 --> 0:15:12.000
<v Speaker 2>of an agreement agreed to in time for lawmakers to act.

0:15:13.840 --> 0:15:16.720
<v Speaker 14>We're hearing that they have been prepared, they have had

0:15:17.000 --> 0:15:19.160
<v Speaker 14>notification that they may need to be prepared to be

0:15:19.280 --> 0:15:21.680
<v Speaker 14>called back from the weekend away and in fact have

0:15:21.840 --> 0:15:25.440
<v Speaker 14>it be a working weekend. The conversations we know at

0:15:25.480 --> 0:15:29.000
<v Speaker 14>the negotiating level between the White House and Republican leadership

0:15:29.160 --> 0:15:34.480
<v Speaker 14>are ongoing, and as you say, time is short. The

0:15:34.640 --> 0:15:38.320
<v Speaker 14>current requirements, the current procedural requirements allow that the House

0:15:38.440 --> 0:15:41.080
<v Speaker 14>has seventy two hours to review a bill. They could

0:15:41.480 --> 0:15:44.120
<v Speaker 14>of course waive that in this instance, but that's seventy

0:15:44.160 --> 0:15:47.720
<v Speaker 14>two hours before even approving legislation. And as you say,

0:15:47.840 --> 0:15:49.520
<v Speaker 14>and as we all know, just looking at the calendar,

0:15:49.560 --> 0:15:51.600
<v Speaker 14>where we stand, if the X date is in fact

0:15:51.920 --> 0:15:54.320
<v Speaker 14>as close to June versus as we're hearing.

0:15:54.520 --> 0:15:56.200
<v Speaker 2>Just about thirty seconds left here. But I got to

0:15:56.200 --> 0:15:58.560
<v Speaker 2>ask you about the presidential race. With Florida Governor Ron

0:15:58.640 --> 0:16:01.840
<v Speaker 2>DeSantis expected to make get official tonight, does that shake

0:16:01.920 --> 0:16:02.920
<v Speaker 2>things up in twenty four?

0:16:04.560 --> 0:16:06.640
<v Speaker 14>The impact of the debt ceiling on the election is

0:16:06.720 --> 0:16:09.440
<v Speaker 14>something that we are of course watching. Polling suggests that

0:16:10.320 --> 0:16:12.920
<v Speaker 14>voters are quite split on who they would blame should

0:16:12.960 --> 0:16:16.360
<v Speaker 14>we reach it default. Again, that's not our baseline scenario,

0:16:16.760 --> 0:16:19.080
<v Speaker 14>but they are quite split on who would be to blame.

0:16:19.120 --> 0:16:21.400
<v Speaker 14>And we know that the domestic economy is always a

0:16:21.480 --> 0:16:25.720
<v Speaker 14>key issue for presidential elections. The CBO office has the

0:16:25.800 --> 0:16:28.720
<v Speaker 14>non partisan CBO has said that in order to punt

0:16:28.760 --> 0:16:31.280
<v Speaker 14>on the debt limit beyond the twenty twenty four elections

0:16:31.520 --> 0:16:35.240
<v Speaker 14>would require really an unprecedented debt limit increase this time around,

0:16:35.360 --> 0:16:37.560
<v Speaker 14>So we have to expect that even if we do

0:16:37.800 --> 0:16:40.200
<v Speaker 14>resolve the debt limit as we expect this time around,

0:16:40.240 --> 0:16:42.040
<v Speaker 14>we're going to continue to talk about the debt limit

0:16:42.160 --> 0:16:43.480
<v Speaker 14>as twenty twenty four approaches.

0:16:45.440 --> 0:16:48.320
<v Speaker 2>This is Bloomberg day Break Today, your morning brief on

0:16:48.440 --> 0:16:51.920
<v Speaker 2>the stories making news from Wall Street to Washington and beyond.

0:16:52.600 --> 0:16:55.320
<v Speaker 1>Look for us on your podcast feed at six am

0:16:55.440 --> 0:16:59.080
<v Speaker 1>Eastern each morning, on Apple, Spotify, and anywhere else you

0:16:59.160 --> 0:16:59.960
<v Speaker 1>get your podcast.

0:17:00.160 --> 0:17:02.760
<v Speaker 2>You can also listen live each morning starting at five

0:17:02.840 --> 0:17:05.399
<v Speaker 2>am Wall Street time on Bloomberg eleven three to zero

0:17:05.480 --> 0:17:08.920
<v Speaker 2>in New York, Bloomberg ninety nine one in Washington, Bloomberg

0:17:08.960 --> 0:17:11.960
<v Speaker 2>one oh sixty one in Boston, and Bloomberg ninety sixty

0:17:12.119 --> 0:17:13.040
<v Speaker 2>in San Francisco.

0:17:13.440 --> 0:17:16.560
<v Speaker 1>Our flagship New York station is also available on your

0:17:16.640 --> 0:17:22.000
<v Speaker 1>Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus.

0:17:22.119 --> 0:17:25.120
<v Speaker 2>Listen coast to coast on the Bloomberg Business app, serious

0:17:25.280 --> 0:17:29.200
<v Speaker 2>XM Channel one nineteen, the iHeartRadio app, and on Bloomberg

0:17:29.320 --> 0:17:32.480
<v Speaker 2>dot Com. I'm Nathan Hager and I'm Karen Moscow.

0:17:32.720 --> 0:17:35.440
<v Speaker 1>Join us again tomorrow morning for all the news you

0:17:35.600 --> 0:17:38.760
<v Speaker 1>need to start your day, right here on Bloomberg Daybreak