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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager and.

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Speaker 1: I'm Karen Moscow. Here are the stories we're following today.

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Speaker 2: We begin with politics. President Biden is trying to bring

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Speaker 2: back a bill that has been all but left for

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Speaker 2: dead in the House, Bipartisan Immigration Reform. Bloomberg Steve Potisk

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Speaker 2: has the latest from Washington.

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Speaker 3: The President had a call last night with House Speaker

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Speaker 3: Mike Johnson and Senate Minority Leader Mitch McConnell, hours after

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Speaker 3: Majority Leader Chuck Schumer announced he was bringing the bill

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Speaker 3: back to the floor. The measure would speed up deportations

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Speaker 3: and make it harder to apply for asylum, while allowing

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Speaker 3: more visas for legal immigration. Speaker Johnson declared the bill

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Speaker 3: dead on arrival three months ago after former President Trump

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Speaker 3: blasted it on social media as a great gift for Democrats.

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Speaker 3: The White House says President Biden told the GOP leaders

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Speaker 3: to quote stop playing politics and act quickly to pass

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Speaker 3: this bipartisan border legislation in Washington. Steve Potisk, Bloomberg Radio.

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Speaker 4: All right, Steve, thanks well.

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Speaker 1: Former President Donald Trump has hit a milestone in the

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Speaker 1: twenty twenty four campaign. He's outraised President Biden for the

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Speaker 1: first time in this election cycle. The Trump campaign and

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Speaker 1: the Republican National Committee took in seventy six million dollars

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Speaker 1: in April. That compares to fifty one million for President

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Speaker 1: Biden and the Democrats. The Biden campaign still has twice

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Speaker 1: as much cash on hand as the Trump team, at

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Speaker 1: one hundred and ninety two million dollars. Trump has held

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Speaker 1: several high profile fundraisers in recent weeks, including a Palm

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Speaker 1: Beach event hosted by billionaire John Paulson.

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Speaker 5: As the former president continues to raise that money, Karen,

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Speaker 5: He's doing it while his hush money trial continues. In Manhattan,

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Speaker 5: yesterday was a chaotic one as the judge had to

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Speaker 5: clear the court. Let's get more now from Bloomberg's John Tucker.

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Speaker 6: John Nathan Trump's lawyers call their second defense witness, attorney

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Speaker 6: Robert Costello, to testify about his interactions with the prosecution

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Speaker 6: star witness Michael Cohen. Costello repeatedly gave answers that went

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Speaker 6: beyond the questions, prompting Judge Juan Marschant to sustain objections

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Speaker 6: from prosecutors and strike the testimony after one such world

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Speaker 6: and Costello commented, Geez. The judge looked at him and

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Speaker 6: said I'm sorry, and then Costello said, stricken, referring to

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Speaker 6: his own remark, his antics got to be a little

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Speaker 6: too much for the judge. He stopped the proceedings, asked

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Speaker 6: the jury to leave. Mershawn lectured the witness, but that

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Speaker 6: was met with an eye roll. A visibly angry judge

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Speaker 6: then cleared the entire courtroom. After a few minutes, the

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Speaker 6: publican press were allowed back in. Costello then seemed to

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Speaker 6: get the message about proper decorum in a court of law.

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Speaker 6: Earlier in the day, prosecutors did rest their case in

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Speaker 6: New York. On John Tucker Bloomberg Radio.

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Speaker 1: All right, John, thanks well. Now to another high profile

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Speaker 1: criminal case in New York, the fraud and market manipulation

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Speaker 1: trial of Bill Wong. A key prosecution witness says, once

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Speaker 1: the Arkago's camp management founder decided on a trade, he

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Speaker 1: did it again and again and again. Senior staffers reacted

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Speaker 1: by greeting each other with Happy Groundhog Day, a reference

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Speaker 1: to the classic Bill Murray time loop comedy. Our Kagos

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Speaker 1: has highly leveraged and concentrated bets on a few companies

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Speaker 1: resulted in a meltdown in March twenty twenty one, wiping

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Speaker 1: out more than thirty billion dollars of Wong's fortune and

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Speaker 1: costing its counterparty banks ten billion dollars.

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Speaker 5: Now to a Bloomberg News exclusive, Karen Sources tell us

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Speaker 5: that two of the world's biggest chip makers, ASML and TSMC,

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Speaker 5: can shut their machines down remotely in the event China

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Speaker 5: invades Taiwan. We get more from Bloomberg's Chan coach in Amsterdam.

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Speaker 7: Forces have told us that officials from the US government

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Speaker 7: have privately expressed concerns to both their Dutch in Taiwanese

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Speaker 7: contraparts about what would happen if China invades the islands.

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Speaker 7: So this secret capability to remotely kill the machines is

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Speaker 7: a way to reassure what she took that China can't

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Speaker 7: use these missions if they taken by force.

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Speaker 5: In Spumberg's Chun coach in Amsterdam, China has long claimed

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Speaker 5: the island of Taiwan as its territory. In President Shi

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Speaker 5: Jinping has advocated for unification and refused to rule out

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Speaker 5: a military intervention.

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Speaker 1: Nathan in the Middle East to the International Criminal Courts

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Speaker 1: Chief Prosecutor is seeking arrest warrants for the leaders of

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Speaker 1: both Israel and Hamas on war crime charges. President Biden

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Speaker 1: criticized the ICC, seeing he sees no equivalence between Israel

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Speaker 1: and Hamas.

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Speaker 8: Contrary allegations against Israel made by the International Court of Justice.

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Speaker 8: What's happening is not genocide, to reject that they'll always

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Speaker 8: stand with Israel and the threats against his security.

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Speaker 1: The decision to seek charges against the Israeli leaders comes

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Speaker 1: despite a US warning that it could jeopardize the chance

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Speaker 1: for a ceasefire deal.

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Speaker 5: Well back here in the US, Karen Martin Gruenberg will

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Speaker 5: step down as head of the Federal Deposit Insurance Corps Proporation,

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Speaker 5: the FDICE. Bloomberg's Amy Morris has the details from Washington.

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Speaker 9: Findings of a toxic work environment put the regulator at

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Speaker 9: the center of a heated political fight and fueled calls

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Speaker 9: for his removal. Grooenberg has faced mounting pressure following a

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Speaker 9: scathing report detailing allegations of harrisman and discrimination, finding a

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Speaker 9: misogynistic workplace culture at the FDIC and raising questions about

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Speaker 9: Groomberg's leadership. Grooenberg says he will leave after his successor

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Speaker 9: is confirmed. He's been with the FDIC since two thousand

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Speaker 9: and five. In Washington, Amy Morris Bloomberg Radio. All right, Amy,

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Speaker 9: thanks Welby. Now turn to the markets in the economy.

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Speaker 9: As investors await to earning Strom Nvidia tomorrow, they'll yet

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Speaker 9: plenty of FED speak to digest. Thomas Bark and Christopher Waller,

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Speaker 9: John Williams, Raphael Bostik, Susan Collins, and Loretta Mester all

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Speaker 9: speak at separate events today, And speaking of Mester, the

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Speaker 9: Cleveland FED president tells our Michael McKee she no longer

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Speaker 9: favors three rate cuts this year. She says policymakers still

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Speaker 9: need more evidence about the path of inflation before for

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Speaker 9: adjusting rates.

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Speaker 4: It's too soon to tell what path inflations on, so

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Speaker 4: we just need to collect more information on that. In

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Speaker 4: the first part of the year, what we saw was

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Speaker 4: the risks that we were too restrictive of gone down.

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Speaker 4: You know, last year people were worried about, oh, the

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Speaker 4: FENN maybe getting too restrictive and therefore it's going to

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Speaker 4: dampen the economy. Those risks went down. At the same time,

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Speaker 4: the risk to inflation, I think are tilted to the

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Speaker 4: upside and remain so. And so that's the balancing that

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Speaker 4: we have to do. As we said policy going forward.

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Speaker 1: Cleveland Fed President Lorettemester votes on policy decisions this year.

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Speaker 5: I speaking of decisions, Karen. Jamie Diamond says succession plans

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Speaker 5: are well on the way at JP Morgan Chase. Speaking

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Speaker 5: at an investor day, the CEO told shareholders that senior

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Speaker 5: individuals at the bank are being prepared for his eventual departure.

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Speaker 10: On the way.

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Speaker 11: I mean, we're moving people around. I still think I

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Speaker 11: should mention if you look at our company, a lot

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Speaker 11: of these folks have been all over the company now.

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Speaker 11: They've been in CFO jobs and in the consumer side,

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Speaker 11: the investment banking sides. They have eat knowledge of the

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Speaker 11: whole company, the whole operating committee, which I think almost

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Speaker 11: all in the room here. They all know all parts

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Speaker 11: of the company. So you've seen succession and got built

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Speaker 11: in a succession with Daniel Pinto. How many companies can say.

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Speaker 5: That Jamie Diamond is sixty eight years old. He adds

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Speaker 5: the timeline for his retirement from JP Morgan is not

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Speaker 5: five years anymore. It's a reference to the long standing

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Speaker 5: tradition of diamond saying that his retirement's five years away

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Speaker 5: no matter when asked.

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Speaker 1: And it's time now for a look at some of

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Speaker 1: the other stories making news in New York and around

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Speaker 1: the world. And for that we're joined by Bloomberg's and

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Speaker 1: Michael Barr. Michael, good Morning, Good morning, Karen.

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Speaker 12: Iran is beginning funeral events today for President Ibraham Rayisi.

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Speaker 12: Raightisi was killed in a helicopter crash over the weekend.

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Speaker 12: Iran will hold presidential elections on June twenty eighth. Following

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Speaker 12: Ibraham's death, Vice President Mohammed Muckburr will take on the

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Speaker 12: role the president in the meantime. Here in the US,

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Speaker 12: National Security Communications Advisor John Kirby says, even in dealing

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Speaker 12: with the worst oppressors, the acknowledgment of the deaths is

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Speaker 12: for the people of Iran, not for the man.

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Speaker 13: This was a man who had a lot of blood

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Speaker 13: on his hands, that said, as we in any other case,

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Speaker 13: we certainly regret in general the loss of life.

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Speaker 12: Raisi and eight others, including the country's foreign minister, were

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Speaker 12: killed in northwestern Iran after their helicopter went down in

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Speaker 12: a mountainous area. New York Mayor Eric Adams formerly is

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Speaker 12: on to the Turkish community had knowledge to some of

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Speaker 12: Adam's dealings.

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Speaker 10: With Turkish officials.

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Speaker 12: It's according to The New York Times, which reports Rana Abasova,

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Speaker 12: once an eight to Adams, is cooperating with the corruption

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Speaker 12: investigation into the mayor and his twenty twenty one campaign.

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Speaker 12: The Times reports that, according to three people with knowledge

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Speaker 12: of the matter in the case, one of the five

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Speaker 12: Americans being detained in Turks and Keikos because ammunition was

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Speaker 12: found in their luggage is talking. Tyler Winrick is speaking

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Speaker 12: out ahead of his plea hearing later today.

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Speaker 14: I have a lot of fear and anxiety.

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Speaker 9: You know.

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Speaker 14: The best outcome to this is that the judge will

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Speaker 14: find leniency and compassion in the situation and steer away

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Speaker 14: from that twelve year sentence and be able to give

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Speaker 14: a sentence is less than that in a fine.

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Speaker 12: Hopefully, a bipartisan delegation of US lawmakers travel to Turks

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Speaker 12: and Kekos to ask for leniency. The Environmental Protection Agency

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Speaker 12: has issued an alert warning of cyber attacks against the

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Speaker 12: nation's water supply. According to the EPA, about seventy percent

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Speaker 12: of federally inspected utilities violated standards to vend off cyber threats.

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Speaker 12: Last year, Congressman Buddy Carter of the House Energy and

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Speaker 12: Commerce Committee.

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Speaker 13: The water sector frequently operates on legacy technology systems, and

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Speaker 13: small systems regularly lack the financial resources to hire cybersecurity staff.

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Speaker 12: Global News twenty fe four hours a day and whenever

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Speaker 12: you want it with Bloomberg News Now Michael Barr, and

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Speaker 12: this is Bloomberg, Karen.

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Speaker 1: Sorry Michael Barr, thank you, and it's time now for

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Speaker 1: the Bloomberg Sports Update with John Stashauer.

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Speaker 10: John, good morning, Good morning, Karen.

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Speaker 15: There was no reason to think the Yankees were not

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Speaker 15: going to win their eighth game in a row. More

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Speaker 15: great starting pitching, this time from Marcus Stroman alex Erdugo

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Speaker 15: with three hit three RB Eyes at the stadium. Yanks

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Speaker 15: took a four to one lead to the ninth, and

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Speaker 15: he gave the ball the closer, Clay Holmes, who in

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Speaker 15: twenty appearances had.

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Speaker 10: Not blown to save, had not allowed a single run.

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Speaker 10: He gave up four.

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Speaker 15: Seattle with four hits off Holmes, who also walked to

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Speaker 15: the Mariners rally to win five to four.

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Speaker 10: Yankee managers Aaron.

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Speaker 16: Boom, you know it's baseball. I thought he threw the ball.

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Speaker 16: Well again, you know, I mean just didn't really bounce

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Speaker 16: our way to that ending. You know, he was on

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Speaker 16: the attack, you know, a couple swinging bunts on him,

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Speaker 16: bloop and then you know, and then they put together

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Speaker 16: some good at bats there to finish off. Obviously a

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Speaker 16: big rally.

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Speaker 10: Lost in Cleveland three to one.

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Speaker 15: Mets started the season oh to five, then went twelve

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Speaker 15: and three, but in the past month they're nine and eighteen.

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Speaker 10: Only once have the Mets won as much as two

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Speaker 10: games in a row.

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Speaker 15: Red Sox won five nothing a Tampa Bay behind Taylor

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Speaker 15: Hawk another home run for Rapid Devers. He's the first

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Speaker 15: in Socks history to homer and six traight games. Nationals

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Speaker 15: beat the Twins twelve to three. Seniley Cup Playoffs down

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Speaker 15: to the final four. They'll drop the buck on the

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Speaker 15: East Finals tomorrow at the Garden Rangers and the Florida Panthers.

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Speaker 15: In the West is now SAT Dallas against Edmonton, who

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Speaker 15: won Game seven in Vancouver three to two. Six of

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Speaker 15: the seven games in the series were decided by one goal.

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Speaker 15: NBA East Finals begin tonight Indiana at Boston. Katelyn Clark

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Speaker 15: and the Indiana Fever now zero to four and the

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Speaker 15: WNBA bile.

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Speaker 10: The livery four to oh they beat Seattle.

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Speaker 15: Scottie Scheffler was originally supposed to be in the Louisville

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Speaker 15: courtroom today. He's facing charges from that traffic incident with

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Speaker 15: police last Friday before Round two of the PGA Championship.

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Speaker 10: His arraignment was postponed until June third.

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Speaker 15: Scheffer's facing two misdemeanors but also felony's second degree assault

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Speaker 15: of a police officer.

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Speaker 10: John Stashy What Bloomberg Sports Karena Navin.

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Speaker 17: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 17: and around the world on Bloomberg dot Com and the

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Speaker 17: Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm

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Speaker 17: Nathan Hager. Turning now to our exclusive conversation with the

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Speaker 17: president of the Cleveland Fed, Loretta Mester. She says inflation

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Speaker 17: risks remain tilted to the upside, and she no longer

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Speaker 17: thinks three rate cuts this year are appropriate. Loretta Mester

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Speaker 17: spoke exclusively with Bloomberg's Michael McKee on the sidelines of

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Speaker 17: the Atlanta FEDS Financial Markets Conference in Florida.

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Speaker 10: Let's go to part of that discussion.

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Speaker 4: I don't think about it in terms of when right.

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Speaker 4: It really is dependent on how the economy is faring

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Speaker 4: and where it's going and is in the progress on

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Speaker 4: our dual mandate goal. So what we're going to be

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Speaker 4: doing is looking at that progress. The first three months

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Speaker 4: of the year we didn't see progress. The CPI report

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Speaker 4: welcome numbers, but still elevated too high, and and in

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Speaker 4: fact there's monthly reading in April was higher than what

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Speaker 4: we saw last year. Now, I wasn't one of the

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Speaker 4: people who thought that we would continue to see the

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Speaker 4: great progress who saw in the second half of the

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Speaker 4: year continue this year. I always thought we'd see some

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Speaker 4: slowing progress, partly because I think we got a lot

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Speaker 4: of help from the supply side last year, and as

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Speaker 4: supply chains have become more normal and as labor markets

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Speaker 4: have become in better balance, I wouldn't have expected to

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Speaker 4: see as much progress. Nonetheless, the lack of progress, I

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Speaker 4: think is something that certainly I didn't find welcome at all,

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Speaker 4: and so that's why we have to continue to gather

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Speaker 4: data and really see it. But as you say, there's

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Speaker 4: no real risk in doing that at the moment, because

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Speaker 4: the real side of the economy growth, labor markets earning

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Speaker 4: good shape well.

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Speaker 18: As old sort of saw. The recessions don't happen slowly.

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Speaker 18: They come on rather immediately, and there are people on

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Speaker 18: Wall Street who are worried that if that'll be behind

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Speaker 18: the curve on growth. Do you have any concerns that

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Speaker 18: there may be something happening that you're not able to

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Speaker 18: measure correctly.

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Speaker 4: Well, you know, we look at data for sure, we

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Speaker 4: have models for sure, but we do a lot of

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Speaker 4: speaking to businesses. We gather a lot of information from

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Speaker 4: contacts all across My district is SUPPORTISI, but every president

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Speaker 4: of a federal reserve is doing the same thing, and

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Speaker 4: so that's very good information because it's more forward looking

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Speaker 4: than the data. And a lot of the people that

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Speaker 4: we talked to in the first quarter of the year

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Speaker 4: were actually telling us that, wow, things are stronger than

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Speaker 4: even we anticipated that they would be. So it wasn't

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Speaker 4: just the data showing strong it was they were also saying. Nonetheless,

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Speaker 4: they did say that they're being more cautious, you know,

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Speaker 4: and more careful. Some projects have been put on hold

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Speaker 4: because they want to sort of see how the economy fares,

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Speaker 4: and that's kind of the mechanism that monetary policy is having.

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Speaker 4: It is starting to moderate demand. It just hasn't moderated

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Speaker 4: as fast as some of us might have expected it

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Speaker 4: to this year. In fact, the last time we put

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Speaker 4: in forecast, you know, I had up my forecast for

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Speaker 4: growth this year to be above trend as opposed to

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Speaker 4: below trends. So I think we're all sort of looking

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Speaker 4: at the data businesses are doing so we're doing so,

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Speaker 4: and we're trying to calibrate to where the economy is

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Speaker 4: and where it's going.

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Speaker 18: Well, speaking of forecasts, you get to put in one

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Speaker 18: more before your retirement at the correct and of June.

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Speaker 18: What's your outlook for inflation the rest.

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Speaker 1: Of the year.

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Speaker 4: Well, you know, we're going to gather all the data

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Speaker 4: that we're going to put together and I'm going to

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Speaker 4: put my forecasts in there. I still think, broadly speaking,

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Speaker 4: that inflation is going to come down. That's my motal

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Speaker 4: forecast that we'll see inflation come down. I just don't

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Speaker 4: think it's going to come down quickly. And so that's

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Speaker 4: why it's really going to be this risk management kind

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Speaker 4: of proposition, as the FED always has to do, is

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Speaker 4: sort of managing the risks around both of our dual

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Speaker 4: mandate goals. If you remember back to the beginning when

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Speaker 4: we started raising rates, monetary policy was not well positioned

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Speaker 4: for the high inflation readings we were getting, and so

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Speaker 4: we had to increase rates quick pace and to a

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Speaker 4: high level. You know, right now, I think monetary policy

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Speaker 4: is well positioned for risk on either side, and so

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Speaker 4: that's kind of what I think what we're gonna be

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Speaker 4: doing going forward is making sure that we're well calibrated

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Speaker 4: for whatever risk end up happening. And so we're well

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Speaker 4: calibrated now if if there is some deterioration on the

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Speaker 4: real sun of the economy that we aren't foreseeing, as

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Speaker 4: you said, you know, we're well positioned to address that

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Speaker 4: by lowering rates. If it turns out that inflation is

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Speaker 4: stalling out not my base case, or even going up,

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Speaker 4: not my base case, we're well positioned to deal with

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Speaker 4: that too, either by holding rates at current levels for

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Speaker 4: longer or if if appropriate, raising the rate. That again,

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Speaker 4: that's not my base case. My base case is that

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Speaker 4: inflation is going to start moving back down on a

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Speaker 4: slow gradual path back to two percent. But we'll have

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Speaker 4: to see, and that's what we're going to be doing

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Speaker 4: is gathering information.

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Speaker 18: What odds would you put on the idea of inflation

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Speaker 18: accelerating again forcing you to maybe raise rates.

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Speaker 4: Well, I think there are upside risks. My base cases

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Speaker 4: at inflation will gradually move back down, But I think

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Speaker 4: we have to be open to the fact that, you know,

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Speaker 4: the economy can surprise you. We've seen that during this

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Speaker 4: episode of high inflation. Partly, I think because the pandemic

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Speaker 4: was a significant event and then the reaction to it

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Speaker 4: was significant, and the economy may be changing, and so

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Speaker 4: we have to be open to the possibility and be

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Speaker 4: prepared for it. But again, my motal forecast is that

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Speaker 4: we'll see inflation move down. But that's why we're going

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Speaker 4: to be having to be very careful and monitoring what's

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Speaker 4: actually happening in the economy.

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