1
00:00:01,600 --> 00:00:04,800
Speaker 1: From the Bloomberg Interactive Burgers Studios. This is Bloomberg day

2
00:00:04,800 --> 00:00:06,960
Speaker 1: Break for Thursday, April twenty seventh.

3
00:00:07,000 --> 00:00:10,200
Speaker 2: Coming up today, House Speaker Kevin McCarthy's dead limit bill

4
00:00:10,320 --> 00:00:13,760
Speaker 2: passes the House, escalating a stand off with President Biden.

5
00:00:14,280 --> 00:00:17,240
Speaker 1: Meta shares surge as revenue, Tom's estimates.

6
00:00:17,280 --> 00:00:21,320
Speaker 2: Deutsche Bank and Barclay's rise following solid results, and.

7
00:00:21,320 --> 00:00:24,319
Speaker 1: First Republic may face limits on borrowing from the Fed.

8
00:00:24,560 --> 00:00:27,720
Speaker 3: Yerk Mayor Adams has released his budget for fiscal twenty

9
00:00:27,800 --> 00:00:30,639
Speaker 3: twenty four. Plus, the woman who's accused Donald Trump of

10
00:00:30,720 --> 00:00:33,639
Speaker 3: raping her decades ago was on the witness stand. I'm

11
00:00:33,680 --> 00:00:35,400
Speaker 3: John Tucker Moray Head, I'm.

12
00:00:35,360 --> 00:00:37,760
Speaker 4: John stansh aarons Ford's the next one in Cleveland will

13
00:00:37,800 --> 00:00:40,440
Speaker 4: now play Miami. The Yankees won, the Mets lost. The

14
00:00:40,560 --> 00:00:42,080
Speaker 4: NFL Draft starts tonight.

15
00:00:43,680 --> 00:00:47,120
Speaker 5: That's all straight ahead on Bloomberg day Break, The business

16
00:00:47,159 --> 00:00:49,599
Speaker 5: news you need to sturn your day in just one

17
00:00:49,720 --> 00:00:54,200
Speaker 5: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

18
00:00:54,240 --> 00:00:56,920
Speaker 5: Business app, and everywhere you get your podcasts.

19
00:01:00,000 --> 00:01:03,080
Speaker 1: Good morning, I maybe Morris and I'm Karen Moscow. Here

20
00:01:03,080 --> 00:01:04,840
Speaker 1: are the stories we're following today.

21
00:01:05,360 --> 00:01:08,320
Speaker 2: House Speaker Kevin McCarthy has gotten his debt bill passed

22
00:01:08,440 --> 00:01:11,640
Speaker 2: in the House. Bloomberg's Ed Baxter reports still has a

23
00:01:11,680 --> 00:01:12,480
Speaker 2: tough road ahead.

24
00:01:13,080 --> 00:01:15,400
Speaker 6: McCarthy did get enough votes to pass it and is

25
00:01:15,520 --> 00:01:16,960
Speaker 6: loudly claiming victory.

26
00:01:17,040 --> 00:01:20,480
Speaker 3: We are the only party to take fiscal action in

27
00:01:20,520 --> 00:01:23,000
Speaker 3: a sound mind that would lift the debt limit, so

28
00:01:23,040 --> 00:01:24,959
Speaker 3: we wouldn't have economic damage.

29
00:01:25,040 --> 00:01:27,680
Speaker 6: So it's onto the Senate, where the Democratic control says

30
00:01:27,760 --> 00:01:31,800
Speaker 6: DOA Senator Richard Blumenthal says they may look later, but.

31
00:01:32,640 --> 00:01:35,720
Speaker 7: There may be a way to combine the two, but

32
00:01:35,920 --> 00:01:37,479
Speaker 7: right now, let's do the debt ceiling.

33
00:01:37,680 --> 00:01:40,000
Speaker 6: President Biden says the bill as it is now will

34
00:01:40,120 --> 00:01:42,640
Speaker 6: never become law, but he's willing to sit down with

35
00:01:42,720 --> 00:01:46,400
Speaker 6: McCarthy if default has taken off the table. In San Francisco.

36
00:01:46,440 --> 00:01:48,240
Speaker 6: I'm at Baxter Bloomberg Gay Break, All.

37
00:01:48,200 --> 00:01:50,760
Speaker 1: Right, thanks well. The two front runners for the Republican

38
00:01:50,800 --> 00:01:53,840
Speaker 1: nomination are making news this morning. A federal appeals court

39
00:01:53,840 --> 00:01:57,160
Speaker 1: has rejected Donald Trump's leadst attempt to stop former Vice

40
00:01:57,200 --> 00:02:00,400
Speaker 1: President Mike Pence from testifying before a grand jury. The

41
00:02:00,440 --> 00:02:03,559
Speaker 1: panel is investigating whether crimes were committed by the former

42
00:02:03,640 --> 00:02:06,680
Speaker 1: president and his allies as they try to undo Joe

43
00:02:06,680 --> 00:02:07,840
Speaker 1: Biden selection win.

44
00:02:08,680 --> 00:02:12,000
Speaker 2: Meantime, Ron DeSantis is now the target of a lawsuit

45
00:02:12,000 --> 00:02:15,720
Speaker 2: from Disney over municipal authority of its theme parks. Disney

46
00:02:15,720 --> 00:02:18,800
Speaker 2: accuses the Florida governor of retaliating against the company for

47
00:02:18,840 --> 00:02:23,239
Speaker 2: speaking out against legislation that he backed. Bloomberg political contributor

48
00:02:23,360 --> 00:02:26,800
Speaker 2: Genie Sheanzano says this will be a tough battle for

49
00:02:26,880 --> 00:02:27,680
Speaker 2: DeSantis to win.

50
00:02:28,080 --> 00:02:30,360
Speaker 8: I think Disney has done a very smart thing here

51
00:02:30,639 --> 00:02:33,320
Speaker 8: and they have really taken it to Ron de Santis.

52
00:02:33,440 --> 00:02:36,360
Speaker 8: He's going to have to either give up, which we

53
00:02:36,440 --> 00:02:39,040
Speaker 8: doubt because it will upend his chances of running, or

54
00:02:39,120 --> 00:02:40,919
Speaker 8: he's going to have to push back. And I think

55
00:02:40,960 --> 00:02:43,760
Speaker 8: either way this is a losing battle for Rond de Santis.

56
00:02:44,000 --> 00:02:47,960
Speaker 2: Bloomberg political contributor Genie Sheanzano spoke with Joe Matthew on

57
00:02:47,960 --> 00:02:51,240
Speaker 2: Bloomberg's Sound on Catch That program weekdays at one pm

58
00:02:51,240 --> 00:02:53,920
Speaker 2: Eastern on Bloomberg Radio. Hear the full interview on the

59
00:02:53,960 --> 00:02:57,800
Speaker 2: Sound on podcast, available on Apple, Spotify or anywhere else

60
00:02:57,840 --> 00:02:59,040
Speaker 2: you get your podcasts.

61
00:02:59,160 --> 00:03:01,000
Speaker 1: Well, we turn to Mark, It's now Amy and it's

62
00:03:01,040 --> 00:03:03,720
Speaker 1: all about earnings again. Today shares a meta up more

63
00:03:03,760 --> 00:03:06,919
Speaker 1: than eleven percent in early trading. The Facebook parent reported

64
00:03:06,960 --> 00:03:10,360
Speaker 1: revenue and user growth that beat estimates. The surprising ADS

65
00:03:10,360 --> 00:03:13,200
Speaker 1: sales rebound is buying Meta time to keep pouring money

66
00:03:13,240 --> 00:03:17,560
Speaker 1: into artificial intelligence and virtual reality. CEO Mark Zuckerberg spoke

67
00:03:17,560 --> 00:03:20,280
Speaker 1: in the company's earnings call, I continue to.

68
00:03:20,200 --> 00:03:24,680
Speaker 9: Believe that's flowing, hiring, slappening our management structure, increasing the

69
00:03:24,680 --> 00:03:27,760
Speaker 9: percent of our company that is technical, and more rigorously

70
00:03:27,840 --> 00:03:31,960
Speaker 9: prioritizing projects will improve the speed and quality of our work.

71
00:03:32,480 --> 00:03:35,800
Speaker 1: CEO Mark Zuckerberg says Meta reached a new milestone in

72
00:03:35,800 --> 00:03:38,880
Speaker 1: the quarter. More than three billion people used at least

73
00:03:38,960 --> 00:03:42,720
Speaker 1: one of its products Facebook, Instagram, or WhatsApp every day.

74
00:03:42,840 --> 00:03:45,160
Speaker 2: And Karen, the earnings continue to roll in today, with

75
00:03:45,240 --> 00:03:47,600
Speaker 2: more than seventy companies in the S and P five

76
00:03:47,680 --> 00:03:52,200
Speaker 2: hundred reporting heading the list, Amazon, Mark and Caterpillar. Amazon

77
00:03:52,320 --> 00:03:54,680
Speaker 2: set to report after the close of US trading.

78
00:03:55,400 --> 00:03:58,040
Speaker 1: Well and you're up today, Amy shares a Barclay's more

79
00:03:58,080 --> 00:04:01,440
Speaker 1: than four percent fixed income rene unexpectedly rose in the

80
00:04:01,520 --> 00:04:05,200
Speaker 1: quarter that helped offset losses and equities trading and deal making.

81
00:04:05,520 --> 00:04:09,720
Speaker 1: In an interview with Bloomberg, CEO cs Venkata Krishnan says

82
00:04:09,800 --> 00:04:14,000
Speaker 1: Barclay's has been relatively sheltered from a global deposit withdrawals.

83
00:04:14,280 --> 00:04:18,880
Speaker 7: The UK has been more insulated from that deposit flight

84
00:04:18,960 --> 00:04:23,240
Speaker 7: across banks than certainly the US has been, between the

85
00:04:23,279 --> 00:04:26,560
Speaker 7: regionals and the big money center banks. Having said that,

86
00:04:26,640 --> 00:04:29,640
Speaker 7: our deposit franchise grew by about ten billion pounds during

87
00:04:29,640 --> 00:04:34,359
Speaker 7: the quarter, and a lot of that was actually people

88
00:04:34,600 --> 00:04:36,560
Speaker 7: corporates putting deposits with US.

89
00:04:36,720 --> 00:04:40,960
Speaker 1: And barclay CEO cs Venketa Krishnan says transaction banking income

90
00:04:41,040 --> 00:04:44,520
Speaker 1: rose sixty eight percent. That's the best first quarter performance

91
00:04:44,520 --> 00:04:45,600
Speaker 1: since twenty fourteen.

92
00:04:46,279 --> 00:04:48,839
Speaker 2: Shares of Deutsche banker up more than one percent. The

93
00:04:48,880 --> 00:04:51,839
Speaker 2: bank is pluging more jobs cuts to save five hundred

94
00:04:51,920 --> 00:04:56,080
Speaker 2: million dollars. This comes after Deutsche Bank's trading business trailed

95
00:04:56,160 --> 00:04:59,440
Speaker 2: peers for a second quarter. When it comes to deposits,

96
00:04:59,480 --> 00:05:03,839
Speaker 2: Chief finance JEL officer James von Moltke tell's outflows stabilized

97
00:05:03,880 --> 00:05:05,440
Speaker 2: after the collapse of Credit Suise.

98
00:05:06,040 --> 00:05:08,520
Speaker 10: Once March was over and we were into April, like

99
00:05:08,560 --> 00:05:11,480
Speaker 10: a light switch, you know, the concerns around the banking

100
00:05:11,520 --> 00:05:15,119
Speaker 10: industry went away, and we've seen deposits stabilize and grow

101
00:05:15,279 --> 00:05:18,240
Speaker 10: over the course of April, in the.

102
00:05:18,160 --> 00:05:21,120
Speaker 2: Wake of the Credit Suez crisis. CFO James von Milkey

103
00:05:21,240 --> 00:05:25,080
Speaker 2: says Deutsche Bank has opportunities to boost its wealth management

104
00:05:25,200 --> 00:05:26,159
Speaker 2: business and.

105
00:05:26,240 --> 00:05:28,520
Speaker 1: Back here in the US. Samy troubles for a First

106
00:05:28,560 --> 00:05:31,600
Speaker 1: Republic are getting deeper. The regional lender could now face

107
00:05:31,680 --> 00:05:35,240
Speaker 1: limits on borrowing from the Federal Reserve. Regulators are weighing

108
00:05:35,240 --> 00:05:38,520
Speaker 1: the prospect of downgrading their assessments of the bank that

109
00:05:38,600 --> 00:05:42,280
Speaker 1: could curb First Republic's access to FED lending facilities. JP

110
00:05:42,400 --> 00:05:45,800
Speaker 1: Morgan Asset Managements Bob Michael says the regional banking sector

111
00:05:45,839 --> 00:05:47,120
Speaker 1: remains in a crisis.

112
00:05:47,760 --> 00:05:51,320
Speaker 11: It's somewhat naive to say that this is just limited

113
00:05:51,400 --> 00:05:55,400
Speaker 11: to First Republic. If you step back and think about this,

114
00:05:55,440 --> 00:05:58,679
Speaker 11: should never have happened. This one after the most heavily

115
00:05:58,760 --> 00:06:03,680
Speaker 11: regulated capitalized industry on the planet, banking, and the regional

116
00:06:03,720 --> 00:06:06,400
Speaker 11: banking system I think is quite vital to the US.

117
00:06:06,680 --> 00:06:08,560
Speaker 11: So I think it is a crisis.

118
00:06:08,800 --> 00:06:11,680
Speaker 1: And JP Morgan's bon Michael notes that First Republic shares

119
00:06:11,760 --> 00:06:17,240
Speaker 1: drop forty nine percent on Tuesday and thirty percent yesterday.

120
00:06:19,440 --> 00:06:21,920
Speaker 2: Thank you, Kieren five oh seven on Wall Street fifty

121
00:06:21,960 --> 00:06:25,000
Speaker 2: two degrees in New York, A few morning showers. Then

122
00:06:25,040 --> 00:06:28,120
Speaker 2: look for partly sunny skies this afternoon. We'll get up

123
00:06:28,120 --> 00:06:30,960
Speaker 2: to sixty five degrees. Tom now for a look at

124
00:06:30,960 --> 00:06:33,240
Speaker 2: some of the other stories making news in New York

125
00:06:33,360 --> 00:06:36,200
Speaker 2: and around the world. For that, we're joined by Bloomberg's

126
00:06:36,320 --> 00:06:36,880
Speaker 2: John Tucker.

127
00:06:36,920 --> 00:06:40,040
Speaker 3: Good morning, John, Good morning Amy. Mayor Eric Adams unveiled

128
00:06:40,080 --> 00:06:42,920
Speaker 3: New York City's budget for fiscal year twenty twenty four.

129
00:06:43,320 --> 00:06:45,720
Speaker 3: The city's budget will be one hundred and six point

130
00:06:45,800 --> 00:06:50,680
Speaker 3: seven billion dollars, the largest executive budget in city history. However,

131
00:06:50,800 --> 00:06:53,760
Speaker 3: in a reversal from earlier talk, no cuts will be

132
00:06:53,839 --> 00:06:57,760
Speaker 3: made to the budgets for libraries and cultural institutions.

133
00:06:58,080 --> 00:07:00,240
Speaker 12: I've been a support of libraries since my day of

134
00:07:00,240 --> 00:07:02,560
Speaker 12: the State Senate. If you would speak with each one

135
00:07:02,600 --> 00:07:06,440
Speaker 12: of the heads of libraries in general, but specifically in Brooklyn,

136
00:07:06,600 --> 00:07:09,680
Speaker 12: they would tell you how much of a friend I

137
00:07:09,720 --> 00:07:10,600
Speaker 12: am to libraries.

138
00:07:11,040 --> 00:07:13,360
Speaker 3: Mayor Adams says, in the last year, more than fifty

139
00:07:13,360 --> 00:07:17,040
Speaker 3: seven thousand asylum seekers have arrived in the city, calling

140
00:07:17,080 --> 00:07:20,640
Speaker 3: it an ongoing crisis. The man convicted of fatally running

141
00:07:20,680 --> 00:07:24,400
Speaker 3: over an fd NYEMT was sentenced to life in prison

142
00:07:24,440 --> 00:07:28,040
Speaker 3: without parole. Jose Gonzalez was high on PCP in March

143
00:07:28,080 --> 00:07:31,120
Speaker 3: of twenty seventeen when he stole the ambulance from Yadira

144
00:07:31,280 --> 00:07:35,200
Speaker 3: Arroyo and motored down in the Bronx. Before he was sentenced, Gonzalez,

145
00:07:35,240 --> 00:07:37,800
Speaker 3: who's thirty one, apologized and said he didn't mean to

146
00:07:37,880 --> 00:07:41,360
Speaker 3: kill anyone. Writer Egene Carroll, who was accused Donald Trump

147
00:07:41,360 --> 00:07:43,640
Speaker 3: of raping her decades ago, was on the witness stand

148
00:07:43,680 --> 00:07:46,080
Speaker 3: in New York part of her civil suit against the

149
00:07:46,120 --> 00:07:48,840
Speaker 3: former president. Carol says when she wrote about it, Trump

150
00:07:48,920 --> 00:07:52,760
Speaker 3: said it didn't happen, shattering her reputation. Carol testified that

151
00:07:52,800 --> 00:07:55,280
Speaker 3: Trump attacked her nearly thirty years ago in a dressing

152
00:07:55,360 --> 00:07:58,360
Speaker 3: room at a Fifth Avenue department store. Still unclear whether

153
00:07:58,440 --> 00:08:02,000
Speaker 3: Trump will testify in the case. The Montana Houses voted

154
00:08:02,000 --> 00:08:06,160
Speaker 3: to bar Montana Representative Zoe Zephyr, the state's only transgender lawmaker,

155
00:08:06,200 --> 00:08:08,720
Speaker 3: from the House floor for taking part in a state

156
00:08:08,800 --> 00:08:12,080
Speaker 3: House protest. Shall no longer be allowed on the House floor,

157
00:08:12,120 --> 00:08:16,640
Speaker 3: but can vote on bills remotely. Republicans limited Zephyr's participation

158
00:08:16,720 --> 00:08:20,080
Speaker 3: in debates aster she rebuked supporters of a proposed ban

159
00:08:20,200 --> 00:08:22,200
Speaker 3: on gender affirming care for children.

160
00:08:22,440 --> 00:08:26,240
Speaker 13: When I rose up and said, there is blood on

161
00:08:26,320 --> 00:08:31,080
Speaker 13: your hands. I was not being hyperbolic. I was speaking

162
00:08:31,280 --> 00:08:36,040
Speaker 13: to the real consequences of the votes that we as

163
00:08:36,160 --> 00:08:38,640
Speaker 13: legislators take in this body.

164
00:08:39,480 --> 00:08:43,080
Speaker 3: Zephyr says that she's confident her punishment has only amplified

165
00:08:43,080 --> 00:08:46,920
Speaker 3: her message. Republican lawmakers said she encouraged the protest Monday

166
00:08:46,960 --> 00:08:51,280
Speaker 3: that disrupted House business and broke decorum. Global News twenty

167
00:08:51,320 --> 00:08:53,480
Speaker 3: four hours a day, powered by more than twenty seven

168
00:08:53,520 --> 00:08:56,040
Speaker 3: hundred journalists and analysts in more than one hundred and

169
00:08:56,040 --> 00:08:59,640
Speaker 3: twenty countries. I'm John Tucker, and this he's Bloomberg. Amy.

170
00:09:00,120 --> 00:09:07,440
Speaker 2: All right, thank you, John. Time now for our Bloomberg

171
00:09:07,520 --> 00:09:09,920
Speaker 2: Sports update. For that, we bring in John Stashauer.

172
00:09:10,000 --> 00:09:10,560
Speaker 3: Thanks Amy.

173
00:09:10,600 --> 00:09:13,160
Speaker 4: The Knicks are moving on their first playoff series victory

174
00:09:13,200 --> 00:09:16,600
Speaker 4: since twenty thirteen, just their second since two thousand. They

175
00:09:16,640 --> 00:09:19,640
Speaker 4: won in Cleveland one oh six to ninety five, won

176
00:09:19,679 --> 00:09:22,160
Speaker 4: the series four to one. Plenty of Nick heroes, maybe

177
00:09:22,160 --> 00:09:25,040
Speaker 4: none more so than Mitchell Robinson protecting the rim and

178
00:09:25,080 --> 00:09:29,240
Speaker 4: grabbing eighteen rebounds. Josh Hard played forty seven minutes. He

179
00:09:29,320 --> 00:09:32,240
Speaker 4: had twelve boards. Jalen Brunson scored twenty three points.

180
00:09:32,360 --> 00:09:32,520
Speaker 8: R J.

181
00:09:32,640 --> 00:09:35,640
Speaker 4: Barrett had twenty one. Julius Randall was playing well until

182
00:09:35,640 --> 00:09:37,840
Speaker 4: he re injured his left ankle late in the first half.

183
00:09:37,920 --> 00:09:40,440
Speaker 4: Nick said to be hopeful Randall will be able to

184
00:09:40,440 --> 00:09:43,680
Speaker 4: play in the second round that starts Sunday afternoon at

185
00:09:43,679 --> 00:09:47,320
Speaker 4: the Garden against the Miami Heat, who in Milwaukee came

186
00:09:47,320 --> 00:09:50,120
Speaker 4: from sixteen down in the fourth quarter one in overtime

187
00:09:50,160 --> 00:09:52,960
Speaker 4: to win that series in a massive upset. Only the

188
00:09:53,000 --> 00:09:55,760
Speaker 4: sixth to eight seed to beat a one wins in

189
00:09:55,800 --> 00:09:58,880
Speaker 4: the West from Memphis and Golden State Bruins lost in

190
00:09:58,920 --> 00:10:01,520
Speaker 4: overtime to Florida. Still lead that series three to two.

191
00:10:01,559 --> 00:10:04,280
Speaker 4: Tonight in Newark, we'll see who goes up three two

192
00:10:04,360 --> 00:10:07,000
Speaker 4: between the Devils and Rangers. Mets were playing well in

193
00:10:07,120 --> 00:10:10,400
Speaker 4: won eight of nine since then four straight losses, beaten

194
00:10:10,400 --> 00:10:13,000
Speaker 4: again by lowly Washington at City Field four to one.

195
00:10:13,120 --> 00:10:16,080
Speaker 4: Yankee Bats came alive in a twelve to six route

196
00:10:16,120 --> 00:10:19,679
Speaker 4: in Minnesota. Aaron Rodgers came to town and remarked about the

197
00:10:19,760 --> 00:10:21,719
Speaker 4: jets lack of history.

198
00:10:21,400 --> 00:10:26,720
Speaker 12: Watching old VHS tapes of the Super Bowls, and so

199
00:10:26,800 --> 00:10:29,920
Speaker 12: obviously I know about the guarantee and roadway.

200
00:10:30,000 --> 00:10:30,400
Speaker 4: Joe.

201
00:10:30,880 --> 00:10:32,040
Speaker 12: It's been a while since then.

202
00:10:32,480 --> 00:10:36,480
Speaker 4: I noticed walking in this morning with that Super Bowl

203
00:10:36,520 --> 00:10:39,640
Speaker 4: three trophies looking more lonely, so Jets now turn their

204
00:10:39,679 --> 00:10:42,200
Speaker 4: attention to the draft that begins tonight in Kansas City.

205
00:10:42,280 --> 00:10:45,160
Speaker 4: Jets have the fifteenth pick, the Giants the twenty fifth pick.

206
00:10:45,480 --> 00:10:48,840
Speaker 4: Carolina picks first expected to take Alabama Keev Bryce Young,

207
00:10:49,200 --> 00:10:51,319
Speaker 4: John stash Ewett. Boomberg Sports.

208
00:10:53,320 --> 00:10:56,720
Speaker 5: Live from coast to coast, from New York to San Francisco,

209
00:10:56,920 --> 00:11:01,360
Speaker 5: Boston to Washington, d C. Nationwide on Syriaxam. The Bloomberg

210
00:11:01,400 --> 00:11:05,559
Speaker 5: Business appened Bloomberg dot Com. This is Bloomberg Daybreak.

211
00:11:06,800 --> 00:11:10,679
Speaker 2: Good morning, I Amy Morris. House Republicans narrowly passed that

212
00:11:10,760 --> 00:11:14,079
Speaker 2: bill to raise the debt ceiling while cutting spending by

213
00:11:14,120 --> 00:11:17,480
Speaker 2: nearly fourteen percent over the coming decade, but the bill

214
00:11:17,640 --> 00:11:20,640
Speaker 2: might not get too far. We're joined now by doctor

215
00:11:20,720 --> 00:11:24,240
Speaker 2: Jullie Norman at the Center on US Politics at University

216
00:11:24,320 --> 00:11:27,640
Speaker 2: College London. Doctor Norman, thanks for joining us this morning.

217
00:11:28,120 --> 00:11:31,200
Speaker 2: Would you call this a victory for House Speaker Kevin McCarthy.

218
00:11:31,760 --> 00:11:33,800
Speaker 14: Well, he definitely needed to get this over the line,

219
00:11:33,840 --> 00:11:36,280
Speaker 14: and he did. I mean, we saw the debacle around

220
00:11:36,360 --> 00:11:40,120
Speaker 14: McCarthy's confirmation as speaker. He really needed this as a

221
00:11:40,160 --> 00:11:42,600
Speaker 14: win to show that he could keep the caucus together

222
00:11:42,760 --> 00:11:44,800
Speaker 14: when it really mattered on issues where they really do

223
00:11:44,920 --> 00:11:47,120
Speaker 14: have leverage. So I do think this was a big

224
00:11:47,120 --> 00:11:49,880
Speaker 14: win for him, even though in reality this was more

225
00:11:49,880 --> 00:11:53,760
Speaker 14: of a symbolic vote as he even was trying to

226
00:11:54,080 --> 00:11:55,960
Speaker 14: get votes. He was even saying, look, we know this

227
00:11:56,000 --> 00:11:58,240
Speaker 14: isn't going to be legislation, but we need this to

228
00:11:58,240 --> 00:11:59,960
Speaker 14: get over the line to show that we're putting something

229
00:12:00,040 --> 00:12:00,600
Speaker 14: on the table.

230
00:12:01,679 --> 00:12:04,160
Speaker 2: So mainly this vote was about showing that they do

231
00:12:04,240 --> 00:12:08,040
Speaker 2: have unity within his caucus. So the bill's future in

232
00:12:08,040 --> 00:12:09,559
Speaker 2: the Senate, what does that look like.

233
00:12:10,559 --> 00:12:13,240
Speaker 14: Well, it was pretty much to debt unarrival. Democrats have

234
00:12:13,320 --> 00:12:16,479
Speaker 14: been very clear that they are not going to compromise

235
00:12:16,520 --> 00:12:18,560
Speaker 14: on the debt sealing, they're not to negotiate on it,

236
00:12:18,600 --> 00:12:21,839
Speaker 14: and they're not going to even consider passing this bill.

237
00:12:22,120 --> 00:12:24,840
Speaker 14: So what really the hope is through this legislation is

238
00:12:24,880 --> 00:12:27,440
Speaker 14: to put the pressure on the White House to start

239
00:12:27,480 --> 00:12:30,280
Speaker 14: negotiating around the debt ceiling. That's what McCarthy has been

240
00:12:30,320 --> 00:12:32,960
Speaker 14: saying from the beginning. That's really the aim of this bill,

241
00:12:33,080 --> 00:12:36,880
Speaker 14: rather than actual passage of the legislation. So in some ways,

242
00:12:36,960 --> 00:12:38,680
Speaker 14: I think from McCarthy's point of view, the ball is

243
00:12:38,679 --> 00:12:41,480
Speaker 14: in Biden's court now with how to engage. Biden so

244
00:12:41,559 --> 00:12:44,040
Speaker 14: far is saying, look, I'm not going to negotiate on

245
00:12:44,080 --> 00:12:45,840
Speaker 14: the debt ceiling. I'm not going to do this for

246
00:12:45,920 --> 00:12:48,000
Speaker 14: the gun to my head and that kind of thing.

247
00:12:48,880 --> 00:12:50,640
Speaker 14: But what he has said is, look, I'll meet and

248
00:12:50,640 --> 00:12:53,800
Speaker 14: talk about spending, but I want it divorced from the

249
00:12:53,840 --> 00:12:56,439
Speaker 14: debt ceiling. That has to be its own passage without

250
00:12:56,440 --> 00:12:57,360
Speaker 14: any strings attached.

251
00:12:58,640 --> 00:13:01,760
Speaker 2: So who has the leverage? Does this possibly force the

252
00:13:01,760 --> 00:13:04,080
Speaker 2: President's hand because there's been a lot of time that

253
00:13:04,120 --> 00:13:07,679
Speaker 2: has passed, nothing technically has been accomplished, and could push

254
00:13:07,760 --> 00:13:11,720
Speaker 2: the country closer to default. So does McCarthy now have

255
00:13:11,800 --> 00:13:13,600
Speaker 2: the leverage or does President Biden.

256
00:13:14,480 --> 00:13:16,960
Speaker 14: It's a good question, Amy, because honestly, they are both

257
00:13:17,120 --> 00:13:20,600
Speaker 14: I think, really pushing this for political gain at the moment.

258
00:13:21,080 --> 00:13:23,960
Speaker 14: We really this kind of brinkmanship is not good for

259
00:13:24,000 --> 00:13:26,440
Speaker 14: the country or for markets. I think we all know that.

260
00:13:26,720 --> 00:13:28,520
Speaker 14: But the same time, I think there's almost coming out

261
00:13:28,559 --> 00:13:30,959
Speaker 14: politically neutral at the moment because both of them can

262
00:13:30,960 --> 00:13:33,760
Speaker 14: spin this to their own advantage. Biden can say that

263
00:13:33,920 --> 00:13:37,439
Speaker 14: Republicans are forcing a negotiation on the debt. McCarthy can

264
00:13:37,480 --> 00:13:40,080
Speaker 14: say Biden the White House aren't negotiating, So I think

265
00:13:40,160 --> 00:13:42,480
Speaker 14: right now they're almost canceling each other out. And I

266
00:13:42,520 --> 00:13:44,160
Speaker 14: do think things are going to have to move forward

267
00:13:44,160 --> 00:13:46,440
Speaker 14: in one shape or form. I think it might be

268
00:13:46,520 --> 00:13:48,000
Speaker 14: a kind of a question of this who's going to

269
00:13:48,040 --> 00:13:48,760
Speaker 14: blink first?

270
00:13:48,880 --> 00:13:49,160
Speaker 8: Again?

271
00:13:49,280 --> 00:13:52,200
Speaker 14: My sense is that there can and will be negotiations

272
00:13:52,200 --> 00:13:55,719
Speaker 14: on spending, but who can actually kind of set the

273
00:13:55,800 --> 00:13:57,800
Speaker 14: terms of when that's going to happen before after the

274
00:13:57,840 --> 00:14:00,800
Speaker 14: debts and land agreement goes through that both parties are

275
00:14:00,800 --> 00:14:03,360
Speaker 14: going to be trying to get upper hand on. Now.

276
00:14:03,360 --> 00:14:05,439
Speaker 2: We've been talking a lot about congressional leaders in the

277
00:14:05,480 --> 00:14:08,199
Speaker 2: White House, but I'm wondering about the rank and file lawmakers.

278
00:14:08,280 --> 00:14:10,920
Speaker 2: Would there at this point be a sense of urgency

279
00:14:10,920 --> 00:14:14,880
Speaker 2: among lawmakers or are those who are entrenched going to

280
00:14:15,040 --> 00:14:18,160
Speaker 2: stay entrenched? Is there any movement to get this done?

281
00:14:18,920 --> 00:14:19,160
Speaker 4: Yeah?

282
00:14:19,200 --> 00:14:21,840
Speaker 14: So we're obviously seeing some calls and interesting even House

283
00:14:21,920 --> 00:14:25,480
Speaker 14: Democrats some calling on Biden saying, look, we really leased.

284
00:14:26,200 --> 00:14:28,280
Speaker 14: Looks like we're trying to negotiate and come to the

285
00:14:28,320 --> 00:14:31,400
Speaker 14: table on this to some degree, And there are some

286
00:14:31,480 --> 00:14:33,760
Speaker 14: calls from others than the Caucus as well, I will

287
00:14:33,800 --> 00:14:37,720
Speaker 14: say it's tricky again as we saw for Republicans, McCarthy

288
00:14:37,760 --> 00:14:40,840
Speaker 14: has a Again, we saw how difficult this was to

289
00:14:40,840 --> 00:14:42,640
Speaker 14: get it over the line, so he doesn't have a

290
00:14:42,640 --> 00:14:45,479
Speaker 14: lot of wiggle room there. And I don't think Republicans

291
00:14:45,480 --> 00:14:47,600
Speaker 14: are going to budge too much on this. But I

292
00:14:47,600 --> 00:14:50,400
Speaker 14: do think as this gets closer again, just reality is

293
00:14:50,400 --> 00:14:52,400
Speaker 14: going to have to set in and no one wants

294
00:14:52,400 --> 00:14:54,360
Speaker 14: to see this happen. The odds of it actually happening

295
00:14:54,360 --> 00:14:57,280
Speaker 14: are very low, but someone does actually need to figure

296
00:14:57,320 --> 00:14:58,800
Speaker 14: out what they're going to do about it before we

297
00:14:58,880 --> 00:15:00,720
Speaker 14: reach that point potentially in June.

298
00:15:01,080 --> 00:15:02,840
Speaker 2: Yeah, I'm wondering how this is going to play out.

299
00:15:02,880 --> 00:15:04,880
Speaker 2: This isn't like the budget where they can take things

300
00:15:04,920 --> 00:15:06,880
Speaker 2: all the way down to the wire then maybe sign

301
00:15:06,920 --> 00:15:08,960
Speaker 2: a CR and kind of stretch it out a little bit.

302
00:15:09,000 --> 00:15:12,200
Speaker 2: This is not how the debt ceiling works. They have

303
00:15:12,240 --> 00:15:14,560
Speaker 2: to get something done ahead of time to give it

304
00:15:14,600 --> 00:15:16,520
Speaker 2: time to get through Congress and to get to the

305
00:15:16,560 --> 00:15:20,840
Speaker 2: President's desk. Are we already out of time? Have they

306
00:15:20,880 --> 00:15:23,640
Speaker 2: been mathematically eliminated? Is there time to get something done

307
00:15:23,640 --> 00:15:24,640
Speaker 2: at this point?

308
00:15:24,920 --> 00:15:25,080
Speaker 13: Yeah?

309
00:15:25,120 --> 00:15:27,000
Speaker 14: I think there is still time. I mean, you know,

310
00:15:27,040 --> 00:15:29,720
Speaker 14: there were some projections that the US wouldn't actually hit

311
00:15:29,720 --> 00:15:32,840
Speaker 14: that default point until almost September. That has gotten moved

312
00:15:32,920 --> 00:15:35,480
Speaker 14: up recently, just as some of the tax revenues came

313
00:15:35,840 --> 00:15:38,320
Speaker 14: a little bit shorter than possible. So I think we're

314
00:15:38,320 --> 00:15:41,040
Speaker 14: still looking at a June window right now. So there

315
00:15:41,120 --> 00:15:42,800
Speaker 14: is still some mogro room. And I guess I would

316
00:15:42,840 --> 00:15:45,960
Speaker 14: say again, this passage, with this bill does kind of

317
00:15:45,960 --> 00:15:47,720
Speaker 14: move things up to the next level. And now it's

318
00:15:47,760 --> 00:15:50,360
Speaker 14: a question of Okay, this is there, we have this

319
00:15:50,440 --> 00:15:52,600
Speaker 14: six weeks. What are we going to do about it?

320
00:15:52,640 --> 00:15:56,360
Speaker 14: And what kinds of deals negotiations can happen to get this,

321
00:15:56,600 --> 00:15:58,560
Speaker 14: to get this through and to get something to get

322
00:15:58,560 --> 00:16:01,680
Speaker 14: something moving on the debt without these massive compromises that

323
00:16:01,760 --> 00:16:03,760
Speaker 14: Democrats aren't going to make either.

324
00:16:04,760 --> 00:16:07,920
Speaker 2: Perhaps they could put together some sort of a coalition

325
00:16:08,000 --> 00:16:09,680
Speaker 2: between the two sides. I mean, what are you going

326
00:16:09,720 --> 00:16:12,160
Speaker 2: to be watching for over the next couple of weeks.

327
00:16:12,480 --> 00:16:14,800
Speaker 14: Yeah, So, I mean we're watching how the White House

328
00:16:14,840 --> 00:16:17,680
Speaker 14: responds to this. I mean within Congress again, I think

329
00:16:17,720 --> 00:16:20,320
Speaker 14: Republicans are clear where they stand in the House. Democrats

330
00:16:20,360 --> 00:16:22,320
Speaker 14: have been clear where they stand in the Senate. So

331
00:16:22,360 --> 00:16:24,120
Speaker 14: it will come to some degree to the White House

332
00:16:24,120 --> 00:16:27,080
Speaker 14: with how this is going to move and so so

333
00:16:27,120 --> 00:16:28,640
Speaker 14: Biden is the one who's really going to have to

334
00:16:28,920 --> 00:16:31,720
Speaker 14: step in and say, I think say when and if

335
00:16:31,760 --> 00:16:33,640
Speaker 14: he's going to negotiate on the other spending measures, and

336
00:16:33,640 --> 00:16:35,680
Speaker 14: if that's going to be enough for McCarthy Republicans.

337
00:16:38,360 --> 00:16:41,640
Speaker 2: You are listening to Bloomberg Daybreak Today, your morning brief

338
00:16:41,680 --> 00:16:44,880
Speaker 2: on the stories making news from Wall Street to Washington

339
00:16:45,040 --> 00:16:45,680
Speaker 2: and beyond.

340
00:16:45,760 --> 00:16:48,560
Speaker 1: Look for us on your podcast feed at six am

341
00:16:48,600 --> 00:16:52,320
Speaker 1: Eastern each morning, on Apple, Spotify, and anywhere else you

342
00:16:52,360 --> 00:16:53,440
Speaker 1: get your podcasts.

343
00:16:53,800 --> 00:16:57,240
Speaker 2: Can also listen live each morning starting at five am

344
00:16:57,320 --> 00:17:00,800
Speaker 2: Wall Street time on Bloomberg eleven three in New York,

345
00:17:01,040 --> 00:17:04,640
Speaker 2: Bloomberg ninety nine to one in Washington, Bloomberg one oh

346
00:17:04,640 --> 00:17:08,919
Speaker 2: sixty one in Boston, and Bloomberg nine sixty in San Francisco.

347
00:17:09,440 --> 00:17:12,600
Speaker 1: Our flagship New York station is also available on your

348
00:17:12,640 --> 00:17:17,679
Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

349
00:17:17,920 --> 00:17:21,280
Speaker 2: Plus listen coast to coast on the Bloomberg Business app,

350
00:17:21,560 --> 00:17:25,959
Speaker 2: Sirius XM Channel one nineteen, the iHeartRadio app, and on

351
00:17:26,000 --> 00:17:28,760
Speaker 2: Bloomberg dot Com. I'm Amy Morris.

352
00:17:28,720 --> 00:17:31,879
Speaker 1: And I'm Karen Moscow. Join us again tomorrow morning for

353
00:17:32,000 --> 00:17:34,520
Speaker 1: all the news you need to start your day, right

354
00:17:34,520 --> 00:17:36,200
Speaker 1: here on Bloomberg Daybreak