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

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Speaker 1: Break for Thursday, June First.

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Speaker 2: Coming up today, the death limit deal is close to

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Speaker 2: the finish line after winning passage in the House.

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Speaker 1: Mike Pence is the latest to enter the Republican race

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Speaker 1: for president.

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Speaker 2: Talk of a rate high pause or a skip grows

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Speaker 2: louder from the Fat.

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Speaker 1: And Elon Musk wraps up his visit to China.

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Speaker 3: Investigators reportedly have a reporting a former President Trump admitting

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Speaker 3: he kept a secret military document, plus deadly attacks in Ukraine.

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Speaker 3: I'm Michael Barr.

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Speaker 4: More ahead, John Stans showIn sports, the Yankees lost in

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Speaker 4: Seattle one to nothing in ten innings. The metsmath the Phillies.

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Speaker 4: The NBA Finals begin tonight.

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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 starn 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 Appen everywhere you get your podcasts.

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Speaker 1: Good morning, I'm Amy Morris and I'm Karen Moscow. Here

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Speaker 1: are the stories we're following today.

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Speaker 2: The House has passed a bill raising the dead limit.

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Speaker 2: The measure also cuts federal spending by trillions of dollars

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Speaker 2: over two years. House Speaker Kevin McCarthy says, Republicans delivered

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Speaker 2: for the American taxpayer.

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Speaker 4: Tonight.

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Speaker 6: We all made history because this is the biggest cut

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Speaker 6: and savings this Congress has ever voted for.

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Speaker 2: Speaker McCarthy calls it the biggest spending cut in American history.

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Speaker 2: But progressive Democrats are slamming the bill. Representative Corey Bush

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Speaker 2: of Missouri says the cuts will hit vulnerable groups.

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Speaker 5: This was a bad deal.

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Speaker 2: We have a big board from the progressives.

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Speaker 1: They say this is a bad deal, and so we

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Speaker 1: stood up to that.

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Speaker 2: Representative Bush calls those work requirements for snap recipients ineffective.

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Speaker 2: The bill now heads to the Senate, where passage is

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Speaker 2: virtually certain, although Vermont Senator Bernie Sanders has already said

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Speaker 2: he'll vote against it. The question now is timing. The

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Speaker 2: President has to sign the bill before June fifth to

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Speaker 2: avoid a default.

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Speaker 1: Well, reaction is pouring into the dead agreement. Amy Bloomberg

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Speaker 1: Politics contributor Genie Shehans Zeno says, in the end, both

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Speaker 1: parties came together, but there are still many lawmakers unhappy

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Speaker 1: with the deal.

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Speaker 7: I would say nobody really wins in this process. Did

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Speaker 7: the center win? I think certainly in this case, the

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Speaker 7: center delivered, and that is critically important at a time

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Speaker 7: of you know, so much partisan ranker. On the other hand,

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Speaker 7: let's remember what we're talking about. We're talking about saving

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Speaker 7: the country from its first default in American history.

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Speaker 1: Bloomberg Politics contributor Genie shehan ZnO notes one hundred and

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Speaker 1: seventeen members of the House voted against the measure, three

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Speaker 1: hundred and fourteen voted for it. Roughly two thirds of

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Speaker 1: House Republicans supported the bill.

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Speaker 2: And that's not all that's going on in the world

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Speaker 2: of politics this morning. The race for president is about

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Speaker 2: to get a bit more crowded. We're learning former Vice

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Speaker 2: President Mike Penn's plans to officially launch his bid next week.

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Speaker 2: Bloomberg's Ad Baxter has that story.

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Speaker 8: If the plan holds, it will be next Wednesday in Iowa.

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Speaker 8: Pence has been laying the groundwork for this for more

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Speaker 8: than a year. He has visited early voting states and

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Speaker 8: promoted his autobiography. As he challenges Donald Trump, he faces

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Speaker 8: polling problems. Real Clear Politics has him with less than

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Speaker 8: four percent in the GOP Bloomberg sources say he plans

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Speaker 8: to offer himself as the only viable traditional conservative in

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Speaker 8: the field, with Ron DeSantis far to the right in

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Speaker 8: San Francisco. I'm at Baxter Bloomberg daybreak.

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Speaker 1: All righted? Thanks? So, outside of politics, Wall Street is

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Speaker 1: laser focused on what the Fed does next to where

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Speaker 1: in less than two weeks from the Central Bank's next meeting,

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Speaker 1: and there's growing talk of a rate pause. Here's Fed

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Speaker 1: a Reserve Governor Phillip Jefferson.

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Speaker 9: A decision to hold our policy rate constant at a

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Speaker 9: coming meeting should not be interpreted to me that we

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Speaker 9: have reached the peak rate for this cycle. Indeed, skipping

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Speaker 9: a rate hike at a coming meeting would allow the

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Speaker 9: committee to see more data before making decisions about the

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Speaker 9: extent of additional policy firming.

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Speaker 10: Thank.

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Speaker 1: Governor Philip Jefferson, who's been nominated to serve as vice chair,

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Speaker 1: says he's looking to tomorrow's jobs report is a key

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Speaker 1: reading and word of a.

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Speaker 2: Pause is nothing new. But how about a skip in

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Speaker 2: rate hikes? That's the latest rhetoric coming out of the

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Speaker 2: Central Bank. From Philadelphia Fed President Patrick Harker.

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Speaker 11: I am in the camp increasingly coming into this meeting

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Speaker 11: thinking that we really should skip, not pause. I don't

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Speaker 11: like the word pause, but skip an increase.

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Speaker 2: Philadelphia Fed President Patrick Harker says the Central Bank doesn't

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Speaker 2: have to hike at every meeting, but he appears to

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Speaker 2: like the optionality that a term like skip may offer

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Speaker 2: policy makers.

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Speaker 7: Well.

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Speaker 1: Any other news we are following this morning brings us

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Speaker 1: to the world's richest ban. Elon Musk is on his

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Speaker 1: way home after wrapping up his first visit to China

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Speaker 1: since the pandemic, and we get the latest from Bloomberg's

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Speaker 1: John Tucker, John.

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Speaker 10: And Karen is Private gena part of Shanghai. This morning

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Speaker 10: local time, he wrapped up the whorldwind Tour meeting staff

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Speaker 10: at Tesla's Shanghai plant. Tesla's China team showed the Boss

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Speaker 10: the first trial production CARB, the revamped Model three. Like

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Speaker 10: other Auto Titans, he's strengthening ties with Beijing, just as

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Speaker 10: the Biden administration and other Western leaders try to less

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Speaker 10: in dependence on China. Mus apparently didn't want to ruffle

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Speaker 10: any feathers during the visit. He was absent on Twitter.

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Speaker 10: Musk has had his longest absence from the platform since

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Speaker 10: June of twenty twenty two.

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Speaker 2: Now.

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Speaker 10: A lot of foreign social media platforms are banned in China,

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Speaker 10: including Twitter, although it's easy to get around the band.

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Speaker 10: Musk also may have popped a bottle of champagne on

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Speaker 10: the way home after learning that he's regained his title

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Speaker 10: as World's richest in New York. I'm John Tucker, Bloomberg Daybreak.

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Speaker 2: All right, thank you, John Elon. Musk and Jamie Diamond

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Speaker 2: aren't the only ceo spending time in China this week.

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Speaker 2: Bloomberg News has learned and Vidia CEO En Wang is

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Speaker 2: heading to China to meet with tech executives in the

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Speaker 2: world's biggest chip market, and Nvidia has emerged as a

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Speaker 2: critical player in artificial intelligence, its position in China is complicated.

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Speaker 2: US sanctions prevent the semiconductor company from selling its most

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Speaker 2: advanced AI chipsets to Chinese customers, including Tencent and by Dance.

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Speaker 1: On other corporate news this morning, Amy, a top Walmart executive,

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Speaker 1: says the retailer remains committed to its Pride Month offerings.

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Speaker 1: The decision comes as competitor Target is embroiled at a

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Speaker 1: controversy over similar products. Target removes some items from its

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Speaker 1: collection for Pride Month in June which honors lesbian, gay, bisexual,

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Speaker 1: and transgender people. Targets hit a rationist threats made workers

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Speaker 1: feel unsafe. This is Bloomberg.

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Speaker 2: Thank you, Karen. Time now for a look at some

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

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Speaker 2: around the world. For that, we're joined by Bloomberg's Michael Barr.

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Speaker 3: Good morning, Michael, Good morning. Amy. Russian forces began June

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Speaker 3: with the fresh round of missile strikes in Ukraine, killing

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Speaker 3: at least three people and wounding others. The Russian strikes

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Speaker 3: at apartment buildings and a medical clinic and the capitol Kiev. Meanwhile,

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Speaker 3: NATO foreign ministers continue their meetings today in Norway, discussing

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Speaker 3: Ukraine's possible future in the Alliance. NATO Secretary General Jen Stoltenberg, the.

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Speaker 12: Most urgent and important task now is to ensure that

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Speaker 12: Ukraine prevails as a sovereign, independent nation. Preston Putin, Russia

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Speaker 12: must not win this war.

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Speaker 3: US Secretary of State Blincoln also arrived in Oslo today.

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Speaker 3: Several media outlets report that Justice Department prosecutors have obtained

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Speaker 3: an audio recording a former President Donald Trump after he

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Speaker 3: left office, in which he talks about holding on to

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Speaker 3: a classified document related to a potential attack on Iran.

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Speaker 3: The twenty twenty one recording at his golf club in

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Speaker 3: Bedminster would appear to undercut his repeated claims that he

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Speaker 3: declassified the documents he took with him from the White

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Speaker 3: House to mar A Lago. New York City officials are

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Speaker 3: calling on the federal government to help with the surge

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Speaker 3: of migrants coming from the southern border Texas and to

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Speaker 3: have bus tens of thousands of migrants to sanctuary cities

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Speaker 3: around the country, including New York. During its first public

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Speaker 3: meeting on UFOs, a NASA panel revealed it has reviewed

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Speaker 3: more than eight hundred cases of what is now called

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Speaker 3: unidentified anomalist phenomena or UAPs. NASA astrobiologist David Grinspoon says

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Speaker 3: that his team is working on how to measure life

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Speaker 3: on other planets and whether it's connected to UAPs.

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Speaker 13: We look for things like anomaloust gases in the atmospheres

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Speaker 13: of planets and other anomalies which may possibly reveal the

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Speaker 13: presence of life. When we discover such an anomaly, we

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Speaker 13: don't conclude that we've discovered life. We seek more data.

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Speaker 3: The largest mass transit provider in America reached to potential

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Speaker 3: labor agreement with its subway operators and bus drivers. The

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Speaker 3: agreement with New York's Metropolitan Transportation Authority securest transit workers

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Speaker 3: annual raises of almost ten percent compounded over three years.

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Speaker 3: Teen birth rates have fallen to their lowest levels ever,

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Speaker 3: according to New Federal DANA. The report from the CBC

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Speaker 3: showed that the team birth rate in twenty twenty two

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Speaker 3: was thirteen point five per one thousand females. Global News

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Speaker 3: twenty four hours a day, powered by more than twenty

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Speaker 3: seven hundred journalists nalysts in over one hundred and twenty countries.

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Speaker 3: I'm michae lebar this is Bloomberg Gaming.

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Speaker 2: All right, Thank you, Michael. Time now for our Bloomberg

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Speaker 2: Sports update. For that, we bring in John stash Hour.

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Speaker 4: Thanks Amy. The Yankees had scored thirty runs in their

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Speaker 4: last three games, but in Seattle, not one in ten innings.

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Speaker 4: The Mariners scored in the tenth won one to nothing,

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Speaker 4: Yanks wasting nine scoreless innings from Clark Smidwandi, Parlton, Clay Holmes.

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Speaker 4: Seattle's George Kirby, the twenty five year old Westchester native

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Speaker 4: who had allowed seven runs. In his previous outing, Herald

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Speaker 4: eight scoreless, allowing only three hits. Yanks off tonight, visit

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Speaker 4: the Dodgers tomorrow, Mets this afternoon. Jill for a sweep

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Speaker 4: of the Phillies after the two to nothing win, a

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Speaker 4: four to one victory at City Field. Carlos carrasco three

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Speaker 4: relievers teaming to beat the Phils. Aaron Nola Mark Canna

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Speaker 4: drove in all four met runs. NBA coaching carousel, another

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Speaker 4: coach who just got fired got another job. Nick Nurse

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Speaker 4: went from Toronto to the Philadelphia. Now Monty Williams fired

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Speaker 4: in Phoenix, hired in Detroit. He's gonna make thirteen million

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Speaker 4: a year. Here's Denver's coach Michael Malone on the eve

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Speaker 4: of the start tonight of the NBA Finals.

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Speaker 6: This is gonna be the biggest challenge of our lives

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Speaker 6: to see NBA Finals. This is you trying to win

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Speaker 6: the first NBA championship in franchise history. It's gonna be

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Speaker 6: the hardest thing that we've ever done, which is the

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Speaker 6: way he should be.

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Speaker 4: It's the Nuggets in the eight, Denver in the playoffs.

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Speaker 4: It's twelve and three eight and I went home with

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Speaker 4: Miami six and four on the road, just had three

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Speaker 4: wins in Boston. Veteran white out de Andre Hopkins as

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Speaker 4: a free agent after getting released by Arizona. The Jets

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Speaker 4: say they are not interested. Giants coach Brian Dabole says

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Speaker 4: they will do their due diligence. French open the one,

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Speaker 4: three and five seeds all one. That's Carlos Alcaraznovak, Djokovic

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Speaker 4: and Stefandos Sits the pass. Second round matches coming up

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Speaker 4: for Americans Taylor, It's Francis Tfo and Coco cow John

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Speaker 4: stash Our Bloomberg Sports.

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

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Speaker 5: Boston to Washington, d C. Nationwide on Syrias Exam, the

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

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Speaker 2: Hey, good morning, im Amy Morris. The House passed that

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Speaker 2: debt limit bill. It would put limits on government spending

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Speaker 2: through the twenty twenty four election and avert a destabilizing

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Speaker 2: US default. And now it heads to the Senate. It

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Speaker 2: is expected to pass, but it's also expected to receive

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Speaker 2: a little pushback there. We're joined now by the co

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Speaker 2: director of the Center on US Politics, Julie Norman at

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Speaker 2: University College London. Julie, it's always a pleasure. Thank you

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Speaker 2: for taking the time with us this morning. Some pretty

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Speaker 2: vehement no votes from the Freedom Caucus, from the Progressive

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Speaker 2: Caucus in the House. Do you expect similar pushback in

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Speaker 2: the Senate?

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Speaker 14: Well, good morning, Amy. You know this was going to

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Speaker 14: be tough in both houses. I would say getting it

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Speaker 14: through the House of Representatives was key. I think that

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Speaker 14: was the big vote that everyone was watching. Could McCarthy

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Speaker 14: get the vote votes, could they get this over the line.

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Speaker 14: The Senate will still have holdouts, but the Senate, I

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Speaker 14: think it's more a question of how fast it will

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Speaker 14: move through rather than if it will move through. We're

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Speaker 14: expecting procedural votes to start really as soon as possible.

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Speaker 14: It's really a question as to how many senators try

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Speaker 14: and throw in amendments, try and kind of muck up

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Speaker 14: the process a little bit. But we've heard from the

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Speaker 14: leadership on both sides, both Schumer and McConnell saying, look,

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Speaker 14: we've got to get this through fast, guys, and just

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Speaker 14: like keep this moving as much as possible.

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Speaker 2: So what are the sticking points?

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Speaker 14: Well, for Republicans, it's pretty much that it doesn't go

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Speaker 14: far enough. You know, the bill that House Republicans had

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Speaker 14: put out that many senter Republicans also wanted, had much

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Speaker 14: deeper cuts for a much longer length of time. So

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Speaker 14: for some conservative senators Mike Lee and Utah for example,

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Speaker 14: Ron Paul are saying, you know this, this doesn't go

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Speaker 14: far enough. We're going to push for a little bit more.

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Speaker 14: On the other hand, you have some of the more progressive

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Speaker 14: Democrats Bernie Sanders Elizabeth Warren saying, look, this is too

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Speaker 14: many concessions on work requirements for AID. I'm pulling back

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Speaker 14: some of our priorities. So we're also not going to

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Speaker 14: endorse this. So again you have some individuals, I think

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Speaker 14: on both ends who will not throw their weight behind it.

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Speaker 14: But there does seem to be a bit more confidence

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Speaker 14: that there's more in the Senate who can get this

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Speaker 14: over the line from both parties.

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Speaker 2: Does this tell you anything about the ability for these

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Speaker 2: two sides to be able to strike deals on other issues?

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Speaker 2: Does this signal a glimmer of comedy and I mean

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Speaker 2: co mity comedy in a bitterly divided Congress.

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Speaker 14: I wish we could say there were broader hope from this.

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Speaker 14: But I would say we should take comfort in the

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Speaker 14: fact that bipartisanship did work this time around in the

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Speaker 14: House forgetting this deal through. That was definitely not a

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Speaker 14: given going into this process. And there's just so many

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Speaker 14: times you can keep pulling a rabbit out of the

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Speaker 14: hat on the debt ceiling, and they managed to do

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Speaker 14: it with the House. And I do think it was

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Speaker 14: because of the leadership of both Biden and McCarthy and

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Speaker 14: really the moderates on both parties realizing the severity of

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Speaker 14: this situation and getting it through. I don't think that

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Speaker 14: will be the case on you know, most other issues.

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Speaker 2: I think there were.

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Speaker 14: Clearer heads prevailed and just realized we cannot hit this

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Speaker 14: June fifth date. And that's really what mobilized most of

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Speaker 14: these votes more than the concessions from one party or

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Speaker 14: the other.

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Speaker 2: You know how things on Capitol Hill always tend to

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Speaker 2: be a zero sum game. Did anybody win? Did President

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Speaker 2: Biden win? Did Speaker McCarthy win? Can they both chalk

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Speaker 2: it up as a victory?

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Speaker 14: Well, Amil, depends who you ask, right, I mean, both

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Speaker 14: both Biden and McCarthy will try and chalk this up

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Speaker 14: as a win. McCarthy is definitely trying to tell Republicans, look,

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Speaker 14: this is the biggest cuts in history, you know, making

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Speaker 14: pretty grand claims about what was really, in all honesty,

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Speaker 14: pretty modest. Bill Biden, on the other hand, I think,

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Speaker 14: can make the case that he protected a lot of

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Speaker 14: programs and funding that Republics had really set out to cut.

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Speaker 14: So both will spin it in their own, you know,

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Speaker 14: in their own favor, and my sense is that the

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Speaker 14: public is responding as such as well. You know, when

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Speaker 14: this was going down to the wire, most Republicans were

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Speaker 14: blaming democrats, most Democrats were blaming Republicans, and so politically

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Speaker 14: all probably come out to a wash. But the good

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Speaker 14: news is that it looks like this is moving through

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Speaker 14: and moving forward, and that's really what all of us

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Speaker 14: were hoping to avoid.

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Speaker 2: Is there still a question though now about Speaker McCarthy's future,

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Speaker 2: because there were Republicans who are very vehemently against this deal. Absolutely.

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Speaker 14: I mean, I think what's notable is that he did

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Speaker 14: manage to get about two thirds of Republicans on board

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Speaker 14: with this bill. I think if it had been you know,

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Speaker 14: if he didn't get the majority of the majorities, he

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Speaker 14: kept saying that would have been a problem, but the

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Speaker 14: fact that that many supported him suggests that even if

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Speaker 14: there were, you know, a few individuals or some of

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Speaker 14: the Freedom Caucus who were trying to threaten his speakership,

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Speaker 14: it seems that he has enough support from within the

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Speaker 14: caucus that he could override. Then I think they know

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Speaker 14: they don't have the votes to push something like that

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Speaker 14: right now. So for the time being, I think this

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Speaker 14: is pretty much a win for McCarthy, but he knows

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Speaker 14: he's on thin ice with you many of the far

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Speaker 14: right members of the party.

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Speaker 2: Only about thirty seconds here. Does this also then speak

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Speaker 2: well for more moderate voices in either party in the

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Speaker 2: broader sense, one would hope.

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Speaker 14: So again, I would say the debt ceiling is a

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Speaker 14: little bit of a distinct issue, and I would note

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Speaker 14: that even some of the votes did not go with

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Speaker 14: some woe maybe expect Marjorie Taylor Green, Jim Jordan. Some

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Speaker 14: that we think as being more farther on the right

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Speaker 14: voted for this, and I do think that speaks to

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Speaker 14: how McCarthy was able to kind of leverage some of

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Speaker 14: his relationships here. So we'll see if that carries over

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Speaker 14: to other issues. But for now focusing on the debt ceiling,

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Speaker 14: and this seems to be moving forward in the way

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Speaker 14: that many of us hope that it would.

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