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Speaker 1: The Bloomberg Interrupted Broker Studios. This is Bloomberg Daybreak for Friday,

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Speaker 1: April twenty. First coming up today, the US plans to

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Speaker 1: limit more investment in China. We have the latest on

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Speaker 1: this Bloomberg exclusive. President Biden may formally launch his reelection

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Speaker 1: bid as early as next week.

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Speaker 2: The SpaceX launch ends in flames, but still claim some

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Speaker 2: big wins for space exploration and more.

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Speaker 3: FED officials make the case for more rate heights.

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Speaker 4: Charges against actor Alec Baldwinner dropped in a fatal onset

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Speaker 4: shooting pluses a big rent increase in the future for

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Speaker 4: New York rent control departments. I'm Michael Barr Moore Ahead,

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Speaker 4: I'm John Stash.

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Speaker 5: Aaron sports the Rangers with another five to one win

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Speaker 5: at New Jersey, another Nets loss to the Sixers, wins

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Speaker 5: for the Mets and Yankees.

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Speaker 6: That's all straight Ahead on Bloomberg day Break, the business

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Speaker 6: news you need to sturn your day in just one

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Speaker 6: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

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Speaker 6: Business Appen everywhere you get your podcasts.

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

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Speaker 1: And I'm Amy Morris. Here are the stories we're following today.

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Speaker 2: Bloomberg News has learned President Biden plans to crack down

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Speaker 2: on US investment in key parts of the Chinese economy.

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Speaker 2: We get more from Bloomberg Chief Asia correspondent Steven Engle.

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Speaker 7: These new curbs would be done through executive order in

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Speaker 7: the coming weeks that could limit American investment in key

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Speaker 7: parts of the economy, particularly some of these advanced technologies

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Speaker 7: that the fear is could end up in the hands

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Speaker 7: of the Chinese military. Again, we're talking semiconductors, artificial intelligence,

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Speaker 7: quantum computing, and again it's going to focus on investments

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Speaker 7: where US firms play active roles in management, So that

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Speaker 7: includes of course venture capital, private equity, those industries already

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Speaker 7: feeling the chill of the US China bifurcation.

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Speaker 2: Bloomberg Chief Asia correspondent Steven Engle says the Biden administration

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Speaker 2: plans to take action around the time of the G

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Speaker 2: seven summit in Japan next month.

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Speaker 1: Meanwhile, Nathan Press sident Biden is eyeing a re election

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Speaker 1: announcement as soon as next week. Bloomberg's Ed Baxter has

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Speaker 1: that story.

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Speaker 8: Biden's aide's have planned for the possibility of making a

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Speaker 8: video announcement to coincide with the anniversary of his previous

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Speaker 8: campaign launch. He has time to do it, of course,

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Speaker 8: but Third Way co founder Matt Bennett says they may

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Speaker 8: be feeling pressure to go now.

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Speaker 9: I think they've decided that there's enough people asking questions

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Speaker 9: that they have to say something. But the problem is

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Speaker 9: there's no real imperative if you're the president to file,

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Speaker 9: because you've got the White House, you've got the logistical

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Speaker 9: support of the White House.

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Speaker 8: This, of course, could set up a Biden Trump rematch

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

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Speaker 4: Thank you, Ed.

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Speaker 2: Now let's get to the latest on the debt ceiling

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Speaker 2: debate in Washington. Democratic Senator Joe Manchin of West Virginia

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Speaker 2: is calling on the White House to quote negotiate now.

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Speaker 2: He is praising Republican House Speaker Kevin McCarthy for putting

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Speaker 2: out a debt limit proposal that cuts spending. We got

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Speaker 2: reaction from Democratic Congressman Brendan Boyle of Pennsylvania.

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Speaker 10: Obviously, Democrats are ready willing and able to negotiate with

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Speaker 10: Republicans on future spending. What we are not willing to

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Speaker 10: do is to give up anything in order to get

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Speaker 10: Republicans to do what is their responsibility, and that has

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Speaker 10: put a bill on the floor to raise the debt ceiling.

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Speaker 11: Queen.

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Speaker 2: Meanwhile, Republican Congressman Brian Donalds of Florida says, the Democrats

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Speaker 2: have created this impass.

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Speaker 11: When they passed they Omibus spending bill right before Christmas,

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Speaker 11: they could have increased the debt ceiling at that time.

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Speaker 11: They chose not to. They did not want to do it,

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Speaker 11: so they could have done it. Then they didn't want

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Speaker 11: to do it. They wanted to set up this, this sprinksmanship,

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Speaker 11: this fight, if you will, around the debt ceiling.

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Speaker 2: Congressman Donald's and Boyle were guests on Bloomberg's Sound On

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Speaker 2: with Joe Matthew and Kaylee Lines. Catch the show weekdays

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Speaker 2: at one pm Eastern on Bloomberg Radio.

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Speaker 1: And we now turn our attention to the Space program.

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Speaker 1: Engineers still trying to figure out what happened, but the

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Speaker 1: explosion of Elon Musk's space X starship yesterday shows just

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Speaker 1: how far he is from the Moon.

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Speaker 3: For the latest, we are joined by Bloomberg's John Tucker.

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Speaker 3: Good morning John, Yeah.

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Speaker 12: Good morning Amy. The initial launch of the most powerful

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Speaker 12: rocketing in the world appeared to be picture perfect, but

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Speaker 12: then four minutes later, high above the hazy Texas skies,

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Speaker 12: the uncrewed Starship exploded. And this is how the SpaceX

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Speaker 12: commentator described it.

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Speaker 13: Starship just experienced what we call a rapid unscheduled disassembly.

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Speaker 12: Well before the explosion, a few of the thirty three

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Speaker 12: Raptor engines appeared to flame out. The super heavy booster

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Speaker 12: was supposed to separate. That never happened. SpaceX says the

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Speaker 12: explode of the rocket on purpose when it started tumbling

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Speaker 12: through the sky. NASA's said its goal is to use

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Speaker 12: Starship to land people on the Moon in twenty twenty five,

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Speaker 12: but first Starship will need to prove it can get

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Speaker 12: into space in one piece. Live in New York. I'm

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Speaker 12: John Tucker Bloomberg, daybreak.

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Speaker 2: All right, John, thank you. It was certainly an eventful

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Speaker 2: day for Elon Musk. His wealth plunged almost thirteen billion

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Speaker 2: dollars to one hundred and sixty four billion after Tesla's

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Speaker 2: disappointing earnings. The stock dropped almost ten percent yesterday and

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Speaker 2: now it's for couping some of that up one and

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Speaker 2: a half percent in the pre market. The electrical vehicle

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Speaker 2: maker says it's boosting prices on its Model S and

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Speaker 2: X vehicles in the US.

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Speaker 1: Turning to the economy, FED officials making the case for

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Speaker 1: another rate high.

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Speaker 3: Cleveland FED President Lorettamester, I.

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Speaker 14: Anticipate that monetary policy will need to move somewhat further

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Speaker 14: into restrictive territory this year, but FED funds rate moving

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Speaker 14: above five percent and the real FED funds rates staying

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Speaker 14: in positive territory for some time.

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Speaker 1: Cleveland FED President Loretta Mester says, well, rates move higher.

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Speaker 1: The FED is monitoring the economic fallout from stresses on

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Speaker 1: the banking system.

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Speaker 2: Well, that recent termoil that hit regional banks amy did

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Speaker 2: not rise to the level of crisis. That's according to

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Speaker 2: Bank of America CEO Brian moynihan.

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Speaker 15: Well, I think at the end of the day, crisis

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Speaker 15: is too strong a word, and words like that get

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Speaker 15: used a lot. But at the end there was a

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Speaker 15: fair amount of disruption for a few weeks there. Well,

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Speaker 15: certain business models were sorted through, But on the other hand,

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Speaker 15: you could see and we could see the stability in

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Speaker 15: the other business models.

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Speaker 2: Bank of America's Brian moynihan spoken an interview with Bloomberg's

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Speaker 2: David Weston, and a.

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Speaker 1: Developing story out of Europe. This morning, UK Prime Minister

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Speaker 1: Rishis Sunex's deputy Dominique Robb has quit his post. The

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Speaker 1: resignation comes after an independent investigation criticized Rob's behavior toward

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Speaker 1: civil servants. This is Bloomberg.

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Speaker 2: Early fifty three degrees in New York. We'll have a

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Speaker 2: mix of sun and clouds today. Highs in the upper sixties,

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Speaker 2: getting down to the mid fifties tonight. Tim now to

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Speaker 2: take a look at some of the other stories making

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Speaker 2: news in New York and around the world with Bloomberg's

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Speaker 2: Michael Barr. Good morning, Michael, Good morning, Nathan.

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Speaker 4: Attorneys for actor Alec Baldwin say New Mexico prosecutors are

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Speaker 4: dropping the involuntary manslaughter charge against the movie star. While

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Speaker 4: rehearsing for the film Rust in twenty twenty one, the

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Speaker 4: prop gun Baldwin was holding went off, killing cinematographer Elena

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Speaker 4: Hutchins and injuring direct to Joel Susa. A few months

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Speaker 4: after the shooting, Baldwin claimed to ABC's George Stephanopolis that

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Speaker 4: he never actually fired the weapon.

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Speaker 3: It wasn't in the script for the trigger.

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Speaker 11: To be pulled. Well the trigger wasn't pulled.

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Speaker 3: I didn't pull the trigger, so you never pulled the trigger.

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Speaker 11: No, no, no, no no. I would never point to

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Speaker 11: go to pull a trigger at them.

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Speaker 10: Never.

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Speaker 4: The film's armorer, Hannah Gutierra's Reid, was also charged with

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Speaker 4: involuntary manslaughter and pleaded not guilty. Her pre trial hearing

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Speaker 4: is scheduled next month. The New York City Rent Guidelines

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Speaker 4: Board is considering a significant rent increase. It would affect

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Speaker 4: close to one million rents stabilized apartments. Mayor Adam's appointed

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Speaker 4: panel suggested an increase of almost sixteen percent for two

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Speaker 4: year leases, which would be the largest increase in decades.

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Speaker 4: It would be an eight and a half percent hike

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Speaker 4: for one year leases. The Supreme Court is facing a

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Speaker 4: self imposed deadline tonight to decide whether women's access to

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Speaker 4: a widely used abortion pill will stay unchanged. The justices

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Speaker 4: are when arguments allowing restrictions of a lower court involving

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Speaker 4: the FDA approved drug mifipristone. There are allegations that the

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Speaker 4: investigation into Hunter Biden is being mishandled and that President

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Speaker 4: Biden's son has been getting preferential treatment. The Justice Department

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Speaker 4: says that the Hunter Biden investigation is not being watered

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Speaker 4: down because he's the President's son. A whistleblower from the

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Speaker 4: IRS disagrees with that. Democratic Senator Richard Blumenthal was asked

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Speaker 4: about the Hunter Biden case so.

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Speaker 16: Much today it is politicized. We need to look at

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Speaker 16: the facts, follow both the facts and the law, and

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Speaker 16: really takes seriously any allegations, but at the same time

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Speaker 16: review what is missing from those allegations as.

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Speaker 4: Well as what's the Senator Blumenthal of Connecticut says, there

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Speaker 4: is less here than meets the eye. Global News twenty

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Speaker 4: four hours a day, powered by more than twenty seven

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Speaker 4: hundred journalist and anailists and over one hundred and twenty countries.

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Speaker 4: I'm Michael Barr. This is Bloomberg.

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Speaker 11: Nathan.

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Speaker 2: Thanks Michael. Time now for the Bloomberg Sports Update. Good morning,

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Speaker 2: John Stanshall.

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Speaker 5: Good morning, Nathan. Little deja vu in New Jersey Rangers

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Speaker 5: and Devil's Game two, and just like Game one, the

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Speaker 5: Rangers won by a five to one score. In both games,

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Speaker 5: Vladimir Terra Senko scored a goal and in both games

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Speaker 5: Chris Krider scored two, with both coming on the power play.

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Speaker 5: Rangers also got third period goals when Patrick Kine and

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Speaker 5: kappokact I was surprising how easily the Rangers have taken

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Speaker 5: the two nothing series lead. We'll see what happens when

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Speaker 5: the series moves across the Hudson. Game three tomorrow at

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Speaker 5: the Garden, where tonight it's the Nixon Cavs their Game

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Speaker 5: three that series tied at one. Cleveland coming off the

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Speaker 5: lopsided win in Game two, the Nets will face elimination

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Speaker 5: tomorrow afternoon at Barkley's where Philadelphia just went up three

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Speaker 5: games to none. Nets were down twelve, had a twenty

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Speaker 5: three to five run on the third courter and take

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Speaker 5: the lead, but Philly pulled it out one oh two

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Speaker 5: ninety seven tires. Maxi has surprisingly been the Sixers best

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Speaker 5: player in this series. He scored twenty five points. Mckel

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Speaker 5: Bridges led Brooklyn with twenty six. Devin Booker scored forty five.

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Speaker 5: Phoenix beat the Clippers for a two to one series lead.

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Speaker 5: Steph Curry scored thirty six Golden State over Sacramento, king

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Speaker 5: still on a two to one lead. Also in San

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Speaker 5: Francisco last night, the Mets made it seven or last eight,

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Speaker 5: scored five runs on the fourth inning It was then

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Speaker 5: five to four. In the fifth, Mets pulled away beat

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Speaker 5: the Giants nine to four home runs for Jeff McNeil,

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Speaker 5: Eduardo Escobar and Pete Alonzo with his already ninth of

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Speaker 5: the season. He leads the majors with so many injured

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Speaker 5: starting pitchers. Good thing the Mets signed CODEI Seinga. He's

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Speaker 5: three and zero. Max Scherzer is appealing the ten games

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Speaker 5: suspension he got for his ejection for sticky stuff. He's

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Speaker 5: cleaned his innocence at the stadium. Yankees meet the Angels

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Speaker 5: nine to three of five run first inning, with Jose

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Speaker 5: Travino getting the three run double.

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Speaker 4: Yanks have yet to lose a series.

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Speaker 5: They start wing tonight in the Bronx with Toronto Don Stashiellwer.

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Speaker 3: Bloomberg Sports.

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Speaker 6: Live from coast to coast, from New York to San Francisco,

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Speaker 6: Boston to Washington, d C. Nationwide on Sirius XM, The

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Speaker 6: Bloomberg Business Appen BOMG dot com.

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Speaker 3: This is Bloomberg Daybreak.

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Speaker 2: Good morning. I'm Nathan Hager. Don't call it a crisis.

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Speaker 2: That's the message from Bank of America Chief Executive Brian moynihan,

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Speaker 2: who says recent regional bank turmoil did not rise to

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Speaker 2: a crisis level. In a conversation with Bloomberg's David Weston

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Speaker 2: during Bloomberg's sell side leaders for him in New York City,

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Speaker 2: moynihan said the deposit insurance covered by lenders did a

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Speaker 2: good job of protecting consumers. He says he has no

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Speaker 2: doubts that the American banking system is in good shape.

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Speaker 2: Let's bring you part of that discussion.

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Speaker 13: Now that we are where we are looking back over it.

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Speaker 13: What do we take away from it? Was this a

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Speaker 13: banking crisis, Was it a mild disruption, was it a tremor?

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Speaker 8: What was it?

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Speaker 13: What is going to linger from it?

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Speaker 15: Well, I think at the end of day, crisis is

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Speaker 15: too strong a word, and words like that get used

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Speaker 15: a lot. But at the end there was a fair

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Speaker 15: amount of disruption for a few weeks there. Well, certain

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Speaker 15: business models were sorted through. On the other hand, you

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Speaker 15: could see and we could see the stability and the

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Speaker 15: other business models which would the way way banking is

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Speaker 15: down very grand learn business and stuff. And so the

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Speaker 15: good news is you're seeing the earnings by the broad

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Speaker 15: industry come out this week. You're seeing things have sort

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Speaker 15: of played out that way, which is very specific business

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Speaker 15: models because the unique circumstances of the last twenty four

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Speaker 15: months of thirty six months of massive amounts of cash

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Speaker 15: putting the system and then rates changing caught people and

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Speaker 15: those had to be sorted out. The good news is

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Speaker 15: the basic industry is to reported good earnings across the board.

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Speaker 15: Deposits have come down, but that's intended by the FED

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Speaker 15: taking money out of the system. It's got to come

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Speaker 15: out of somewhere. Banking system is what they want to

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Speaker 15: do to you, frankly, make credit tighter and help slow

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Speaker 15: down the economy. So that's gone on, but you look

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Speaker 15: at the capital, liquidity and earnings power of all these

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Speaker 15: companies have been tremendous and that's that's reassuring to people,

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Speaker 15: and that's good news because in the end of the day,

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Speaker 15: the banking system reflects economy and American economies around the world,

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Speaker 15: and you hope it's in good shape, and it is.

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Speaker 15: There's no question it's good.

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Speaker 10: Shit.

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Speaker 13: How the regulators do We were talking to them through

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Speaker 13: this period of time and they stepped in obviously took

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Speaker 13: the deposit insurance, and do you think they should be

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Speaker 13: making changes with future to make sure we don't go

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Speaker 13: through this again.

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Speaker 15: I think there will be a time to look at

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Speaker 15: the deposit insurance scheme in a rational way. It's never

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Speaker 15: the time to look at any of the stuff the

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Speaker 15: day after it happens, because people have opinions of what

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Speaker 15: happened never turns out to be as true as they thought.

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Speaker 15: And even in the financial crisis, there are a lot

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Speaker 15: of opinions about it started with Leming, well, that was

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Speaker 15: the last part of it. It started in two thousand

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Speaker 15: and six from what happened. Housing prices quick going up,

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Speaker 15: and so it took a little more rational thought to

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Speaker 15: think through all the different things that happened. So I

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Speaker 15: think the debate will be for transactional accounts should there

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Speaker 15: during the financial crisis two thousand and eight nine, I think,

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Speaker 15: going on for three or four years, there was a

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Speaker 15: guaranteed transaction accounts so the individual smaller companies didn't have

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Speaker 15: to be cash managed every day and figure out where

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Speaker 15: that the money was. And that's a scheme you could

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Speaker 15: do either sort of transaction money in the banking system.

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Speaker 15: There's savings money in the banking system, and the savings

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Speaker 15: money and banking system is there to get rate and

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Speaker 15: return the transaction money is there to help the economy going,

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Speaker 15: and the idea is you can ensure that more fully.

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Speaker 15: And that's what they did in the financial crisis to

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Speaker 15: stop people figure out in the end of the day,

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Speaker 15: a scheme like that would have changed nature of what

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Speaker 15: went on here because people were running around trying to

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Speaker 15: figure out is there two thousand, two fifty thousand dollars

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Speaker 15: in one in a small business or an entrepreneurial thing

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Speaker 15: or a big company. And so I think there'll be

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Speaker 15: time to talk about that. We'll see a playout. It's

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Speaker 15: worked pretty well. This is nice because the banking industry

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Speaker 15: pays for its own airs and then we have a

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Speaker 15: high instinct to clean it up. And so I think

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Speaker 15: playing with the thought process how to be carefully dealt

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Speaker 15: with only because it's been in place since the thirties

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Speaker 15: and it's worked pretty well.

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Speaker 13: Your bank and some others stepped in with First republic

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Speaker 13: to help them also deposit. It's led it reported by

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Speaker 13: Jamie Diamond. Is that something we should expect in the future.

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Speaker 13: I mean, is it First Republican to need more or

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Speaker 13: will other banks need more from the other banks.

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Speaker 15: I don't have any special ins about First Republic, talk

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Speaker 15: about why we did as an industry. It was to

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Speaker 15: stabilize one of our companies and provide liquidity because it

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Speaker 15: was a liquidy question.

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Speaker 6: They asked.

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Speaker 11: It's good.

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Speaker 15: This is kind of the odd thing because if you

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Speaker 15: if you're around, and if you're old enough to be

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Speaker 15: around in the late ads and nineties, that is when

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Speaker 15: the banking christ won. People think the GFC so called

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Speaker 15: was a banking crisis. Actually the issue is those companies

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Speaker 15: weren't banks. So whether it was all the different companies

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Speaker 15: you heard about that you know, caused trouble and cleaning,

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Speaker 15: they weren't banks, and they were brought in the banking

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Speaker 15: system put an umbrella around them so they could fix them. Wait,

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Speaker 15: in late ays and early nineties, you had a highly inflationary,

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Speaker 15: high interest rate environment of commercial real estate, and that

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Speaker 15: was that was a banking crisis. And so that that's

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Speaker 15: different and it happens at a slower pace, and so

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Speaker 15: we were able to step in and help because that

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Speaker 15: was an asset quality problem. Commercial real estate rolling real

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Speaker 15: estate started in Texas and oil and all this stuff.

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Speaker 15: You just ran through all the regional economies and these

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Speaker 15: companies had.

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Speaker 4: Great ask quality.

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Speaker 15: It's just they had a liquidity problem and that's why

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Speaker 15: we put the deposit in and it worked.

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Speaker 2: That was Bank of America CEO Brian moynihan speaking with

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Speaker 2: Bloomberg's David Weston at Bloomberg's Sell SI Leaders Forum in

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Speaker 2: New York City. You can listen to the full interview

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Speaker 2: on the Bloomberg terminal, Bloomberg dot com, and on the

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Speaker 2: Bloomberg Business app.

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Speaker 17: stories making news from Wall Street to Washington and beyond.

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Speaker 3: I'm Nathan Hager and I'm Amy Morris.

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Speaker 1: Join us again for all the news you need to

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