Speaker 1: From the Bloomberg Interactive Burgers Studios. This is Bloomberg day
Speaker 1: Break for Thursday, April twenty seventh.
Speaker 2: Coming up today, House Speaker Kevin McCarthy's dead limit bill
Speaker 2: passes the House, escalating a stand off with President Biden.
Speaker 1: Meta shares surge as revenue, Tom's estimates.
Speaker 2: Deutsche Bank and Barclay's rise following solid results, and.
Speaker 1: First Republic may face limits on borrowing from the Fed.
Speaker 3: Yerk Mayor Adams has released his budget for fiscal twenty
Speaker 3: twenty four. Plus, the woman who's accused Donald Trump of
Speaker 3: raping her decades ago was on the witness stand. I'm
Speaker 3: John Tucker Moray Head, I'm.
Speaker 4: John stansh aarons Ford's the next one in Cleveland will
Speaker 4: now play Miami. The Yankees won, the Mets lost. The
Speaker 4: NFL Draft starts tonight.
Speaker 5: That's all straight ahead on Bloomberg day Break, The business
Speaker 5: news you need to sturn your day in just one
Speaker 5: fifteen minute podcast each morning on Apples, Spotify, the Bloomberg
Speaker 5: Business app, and everywhere you get your podcasts.
Speaker 1: Good morning, I maybe Morris and I'm Karen Moscow. Here
Speaker 1: are the stories we're following today.
Speaker 2: House Speaker Kevin McCarthy has gotten his debt bill passed
Speaker 2: in the House. Bloomberg's Ed Baxter reports still has a
Speaker 2: tough road ahead.
Speaker 6: McCarthy did get enough votes to pass it and is
Speaker 6: loudly claiming victory.
Speaker 3: We are the only party to take fiscal action in
Speaker 3: a sound mind that would lift the debt limit, so
Speaker 3: we wouldn't have economic damage.
Speaker 6: So it's onto the Senate, where the Democratic control says
Speaker 6: DOA Senator Richard Blumenthal says they may look later, but.
Speaker 7: There may be a way to combine the two, but
Speaker 7: right now, let's do the debt ceiling.
Speaker 6: President Biden says the bill as it is now will
Speaker 6: never become law, but he's willing to sit down with
Speaker 6: McCarthy if default has taken off the table. In San Francisco.
Speaker 6: I'm at Baxter Bloomberg Gay Break, All.
Speaker 1: Right, thanks well. The two front runners for the Republican
Speaker 1: nomination are making news this morning. A federal appeals court
Speaker 1: has rejected Donald Trump's leadst attempt to stop former Vice
Speaker 1: President Mike Pence from testifying before a grand jury. The
Speaker 1: panel is investigating whether crimes were committed by the former
Speaker 1: president and his allies as they try to undo Joe
Speaker 1: Biden selection win.
Speaker 2: Meantime, Ron DeSantis is now the target of a lawsuit
Speaker 2: from Disney over municipal authority of its theme parks. Disney
Speaker 2: accuses the Florida governor of retaliating against the company for
Speaker 2: speaking out against legislation that he backed. Bloomberg political contributor
Speaker 2: Genie Sheanzano says this will be a tough battle for
Speaker 2: DeSantis to win.
Speaker 8: I think Disney has done a very smart thing here
Speaker 8: and they have really taken it to Ron de Santis.
Speaker 8: He's going to have to either give up, which we
Speaker 8: doubt because it will upend his chances of running, or
Speaker 8: he's going to have to push back. And I think
Speaker 8: either way this is a losing battle for Rond de Santis.
Speaker 2: Bloomberg political contributor Genie Sheanzano spoke with Joe Matthew on
Speaker 2: Bloomberg's Sound on Catch That program weekdays at one pm
Speaker 2: Eastern on Bloomberg Radio. Hear the full interview on the
Speaker 2: Sound on podcast, available on Apple, Spotify or anywhere else
Speaker 2: you get your podcasts.
Speaker 1: Well, we turn to Mark, It's now Amy and it's
Speaker 1: all about earnings again. Today shares a meta up more
Speaker 1: than eleven percent in early trading. The Facebook parent reported
Speaker 1: revenue and user growth that beat estimates. The surprising ADS
Speaker 1: sales rebound is buying Meta time to keep pouring money
Speaker 1: into artificial intelligence and virtual reality. CEO Mark Zuckerberg spoke
Speaker 1: in the company's earnings call, I continue to.
Speaker 9: Believe that's flowing, hiring, slappening our management structure, increasing the
Speaker 9: percent of our company that is technical, and more rigorously
Speaker 9: prioritizing projects will improve the speed and quality of our work.
Speaker 1: CEO Mark Zuckerberg says Meta reached a new milestone in
Speaker 1: the quarter. More than three billion people used at least
Speaker 1: one of its products Facebook, Instagram, or WhatsApp every day.
Speaker 2: And Karen, the earnings continue to roll in today, with
Speaker 2: more than seventy companies in the S and P five
Speaker 2: hundred reporting heading the list, Amazon, Mark and Caterpillar. Amazon
Speaker 2: set to report after the close of US trading.
Speaker 1: Well and you're up today, Amy shares a Barclay's more
Speaker 1: than four percent fixed income rene unexpectedly rose in the
Speaker 1: quarter that helped offset losses and equities trading and deal making.
Speaker 1: In an interview with Bloomberg, CEO cs Venkata Krishnan says
Speaker 1: Barclay's has been relatively sheltered from a global deposit withdrawals.
Speaker 7: The UK has been more insulated from that deposit flight
Speaker 7: across banks than certainly the US has been, between the
Speaker 7: regionals and the big money center banks. Having said that,
Speaker 7: our deposit franchise grew by about ten billion pounds during
Speaker 7: the quarter, and a lot of that was actually people
Speaker 7: corporates putting deposits with US.
Speaker 1: And barclay CEO cs Venketa Krishnan says transaction banking income
Speaker 1: rose sixty eight percent. That's the best first quarter performance
Speaker 1: since twenty fourteen.
Speaker 2: Shares of Deutsche banker up more than one percent. The
Speaker 2: bank is pluging more jobs cuts to save five hundred
Speaker 2: million dollars. This comes after Deutsche Bank's trading business trailed
Speaker 2: peers for a second quarter. When it comes to deposits,
Speaker 2: Chief finance JEL officer James von Moltke tell's outflows stabilized
Speaker 2: after the collapse of Credit Suise.
Speaker 10: Once March was over and we were into April, like
Speaker 10: a light switch, you know, the concerns around the banking
Speaker 10: industry went away, and we've seen deposits stabilize and grow
Speaker 10: over the course of April, in the.
Speaker 2: Wake of the Credit Suez crisis. CFO James von Milkey
Speaker 2: says Deutsche Bank has opportunities to boost its wealth management
Speaker 2: business and.
Speaker 1: Back here in the US. Samy troubles for a First
Speaker 1: Republic are getting deeper. The regional lender could now face
Speaker 1: limits on borrowing from the Federal Reserve. Regulators are weighing
Speaker 1: the prospect of downgrading their assessments of the bank that
Speaker 1: could curb First Republic's access to FED lending facilities. JP
Speaker 1: Morgan Asset Managements Bob Michael says the regional banking sector
Speaker 1: remains in a crisis.
Speaker 11: It's somewhat naive to say that this is just limited
Speaker 11: to First Republic. If you step back and think about this,
Speaker 11: should never have happened. This one after the most heavily
Speaker 11: regulated capitalized industry on the planet, banking, and the regional
Speaker 11: banking system I think is quite vital to the US.
Speaker 11: So I think it is a crisis.
Speaker 1: And JP Morgan's bon Michael notes that First Republic shares
Speaker 1: drop forty nine percent on Tuesday and thirty percent yesterday.
Speaker 2: Thank you, Kieren five oh seven on Wall Street fifty
Speaker 2: two degrees in New York, A few morning showers. Then
Speaker 2: look for partly sunny skies this afternoon. We'll get up
Speaker 2: to sixty five degrees. Tom now for a look at
Speaker 2: some of the other stories making news in New York
Speaker 2: and around the world. For that, we're joined by Bloomberg's
Speaker 2: John Tucker.
Speaker 3: Good morning, John, Good morning Amy. Mayor Eric Adams unveiled
Speaker 3: New York City's budget for fiscal year twenty twenty four.
Speaker 3: The city's budget will be one hundred and six point
Speaker 3: seven billion dollars, the largest executive budget in city history. However,
Speaker 3: in a reversal from earlier talk, no cuts will be
Speaker 3: made to the budgets for libraries and cultural institutions.
Speaker 12: I've been a support of libraries since my day of
Speaker 12: the State Senate. If you would speak with each one
Speaker 12: of the heads of libraries in general, but specifically in Brooklyn,
Speaker 12: they would tell you how much of a friend I
Speaker 12: am to libraries.
Speaker 3: Mayor Adams says, in the last year, more than fifty
Speaker 3: seven thousand asylum seekers have arrived in the city, calling
Speaker 3: it an ongoing crisis. The man convicted of fatally running
Speaker 3: over an fd NYEMT was sentenced to life in prison
Speaker 3: without parole. Jose Gonzalez was high on PCP in March
Speaker 3: of twenty seventeen when he stole the ambulance from Yadira
Speaker 3: Arroyo and motored down in the Bronx. Before he was sentenced, Gonzalez,
Speaker 3: who's thirty one, apologized and said he didn't mean to
Speaker 3: kill anyone. Writer Egene Carroll, who was accused Donald Trump
Speaker 3: of raping her decades ago, was on the witness stand
Speaker 3: in New York part of her civil suit against the
Speaker 3: former president. Carol says when she wrote about it, Trump
Speaker 3: said it didn't happen, shattering her reputation. Carol testified that
Speaker 3: Trump attacked her nearly thirty years ago in a dressing
Speaker 3: room at a Fifth Avenue department store. Still unclear whether
Speaker 3: Trump will testify in the case. The Montana Houses voted
Speaker 3: to bar Montana Representative Zoe Zephyr, the state's only transgender lawmaker,
Speaker 3: from the House floor for taking part in a state
Speaker 3: House protest. Shall no longer be allowed on the House floor,
Speaker 3: but can vote on bills remotely. Republicans limited Zephyr's participation
Speaker 3: in debates aster she rebuked supporters of a proposed ban
Speaker 3: on gender affirming care for children.
Speaker 13: When I rose up and said, there is blood on
Speaker 13: your hands. I was not being hyperbolic. I was speaking
Speaker 13: to the real consequences of the votes that we as
Speaker 13: legislators take in this body.
Speaker 3: Zephyr says that she's confident her punishment has only amplified
Speaker 3: her message. Republican lawmakers said she encouraged the protest Monday
Speaker 3: that disrupted House business and broke decorum. Global News twenty
Speaker 3: four hours a day, powered by more than twenty seven
Speaker 3: hundred journalists and analysts in more than one hundred and
Speaker 3: twenty countries. I'm John Tucker, and this he's Bloomberg. Amy.
Speaker 2: All right, thank you, John. Time now for our Bloomberg
Speaker 2: Sports update. For that, we bring in John Stashauer.
Speaker 3: Thanks Amy.
Speaker 4: The Knicks are moving on their first playoff series victory
Speaker 4: since twenty thirteen, just their second since two thousand. They
Speaker 4: won in Cleveland one oh six to ninety five, won
Speaker 4: the series four to one. Plenty of Nick heroes, maybe
Speaker 4: none more so than Mitchell Robinson protecting the rim and
Speaker 4: grabbing eighteen rebounds. Josh Hard played forty seven minutes. He
Speaker 4: had twelve boards. Jalen Brunson scored twenty three points.
Speaker 8: R J.
Speaker 4: Barrett had twenty one. Julius Randall was playing well until
Speaker 4: he re injured his left ankle late in the first half.
Speaker 4: Nick said to be hopeful Randall will be able to
Speaker 4: play in the second round that starts Sunday afternoon at
Speaker 4: the Garden against the Miami Heat, who in Milwaukee came
Speaker 4: from sixteen down in the fourth quarter one in overtime
Speaker 4: to win that series in a massive upset. Only the
Speaker 4: sixth to eight seed to beat a one wins in
Speaker 4: the West from Memphis and Golden State Bruins lost in
Speaker 4: overtime to Florida. Still lead that series three to two.
Speaker 4: Tonight in Newark, we'll see who goes up three two
Speaker 4: between the Devils and Rangers. Mets were playing well in
Speaker 4: won eight of nine since then four straight losses, beaten
Speaker 4: again by lowly Washington at City Field four to one.
Speaker 4: Yankee Bats came alive in a twelve to six route
Speaker 4: in Minnesota. Aaron Rodgers came to town and remarked about the
Speaker 4: jets lack of history.
Speaker 12: Watching old VHS tapes of the Super Bowls, and so
Speaker 12: obviously I know about the guarantee and roadway.
Speaker 4: Joe.
Speaker 12: It's been a while since then.
Speaker 4: I noticed walking in this morning with that Super Bowl
Speaker 4: three trophies looking more lonely, so Jets now turn their
Speaker 4: attention to the draft that begins tonight in Kansas City.
Speaker 4: Jets have the fifteenth pick, the Giants the twenty fifth pick.
Speaker 4: Carolina picks first expected to take Alabama Keev Bryce Young,
Speaker 4: John stash Ewett. Boomberg Sports.
Speaker 5: Live from coast to coast, from New York to San Francisco,
Speaker 5: Boston to Washington, d C. Nationwide on Syriaxam. The Bloomberg
Speaker 5: Business appened Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 2: Good morning, I Amy Morris. House Republicans narrowly passed that
Speaker 2: bill to raise the debt ceiling while cutting spending by
Speaker 2: nearly fourteen percent over the coming decade, but the bill
Speaker 2: might not get too far. We're joined now by doctor
Speaker 2: Jullie Norman at the Center on US Politics at University
Speaker 2: College London. Doctor Norman, thanks for joining us this morning.
Speaker 2: Would you call this a victory for House Speaker Kevin McCarthy.
Speaker 14: Well, he definitely needed to get this over the line,
Speaker 14: and he did. I mean, we saw the debacle around
Speaker 14: McCarthy's confirmation as speaker. He really needed this as a
Speaker 14: win to show that he could keep the caucus together
Speaker 14: when it really mattered on issues where they really do
Speaker 14: have leverage. So I do think this was a big
Speaker 14: win for him, even though in reality this was more
Speaker 14: of a symbolic vote as he even was trying to
Speaker 14: get votes. He was even saying, look, we know this
Speaker 14: isn't going to be legislation, but we need this to
Speaker 14: get over the line to show that we're putting something
Speaker 14: on the table.
Speaker 2: So mainly this vote was about showing that they do
Speaker 2: have unity within his caucus. So the bill's future in
Speaker 2: the Senate, what does that look like.
Speaker 14: Well, it was pretty much to debt unarrival. Democrats have
Speaker 14: been very clear that they are not going to compromise
Speaker 14: on the debt sealing, they're not to negotiate on it,
Speaker 14: and they're not going to even consider passing this bill.
Speaker 14: So what really the hope is through this legislation is
Speaker 14: to put the pressure on the White House to start
Speaker 14: negotiating around the debt ceiling. That's what McCarthy has been
Speaker 14: saying from the beginning. That's really the aim of this bill,
Speaker 14: rather than actual passage of the legislation. So in some ways,
Speaker 14: I think from McCarthy's point of view, the ball is
Speaker 14: in Biden's court now with how to engage. Biden so
Speaker 14: far is saying, look, I'm not going to negotiate on
Speaker 14: the debt ceiling. I'm not going to do this for
Speaker 14: the gun to my head and that kind of thing.
Speaker 14: But what he has said is, look, I'll meet and
Speaker 14: talk about spending, but I want it divorced from the
Speaker 14: debt ceiling. That has to be its own passage without
Speaker 14: any strings attached.
Speaker 2: So who has the leverage? Does this possibly force the
Speaker 2: President's hand because there's been a lot of time that
Speaker 2: has passed, nothing technically has been accomplished, and could push
Speaker 2: the country closer to default. So does McCarthy now have
Speaker 2: the leverage or does President Biden.
Speaker 14: It's a good question, Amy, because honestly, they are both
Speaker 14: I think, really pushing this for political gain at the moment.
Speaker 14: We really this kind of brinkmanship is not good for
Speaker 14: the country or for markets. I think we all know that.
Speaker 14: But the same time, I think there's almost coming out
Speaker 14: politically neutral at the moment because both of them can
Speaker 14: spin this to their own advantage. Biden can say that
Speaker 14: Republicans are forcing a negotiation on the debt. McCarthy can
Speaker 14: say Biden the White House aren't negotiating, So I think
Speaker 14: right now they're almost canceling each other out. And I
Speaker 14: do think things are going to have to move forward
Speaker 14: in one shape or form. I think it might be
Speaker 14: a kind of a question of this who's going to
Speaker 14: blink first?
Speaker 8: Again?
Speaker 14: My sense is that there can and will be negotiations
Speaker 14: on spending, but who can actually kind of set the
Speaker 14: terms of when that's going to happen before after the
Speaker 14: debts and land agreement goes through that both parties are
Speaker 14: going to be trying to get upper hand on. Now.
Speaker 2: We've been talking a lot about congressional leaders in the
Speaker 2: White House, but I'm wondering about the rank and file lawmakers.
Speaker 2: Would there at this point be a sense of urgency
Speaker 2: among lawmakers or are those who are entrenched going to
Speaker 2: stay entrenched? Is there any movement to get this done?
Speaker 4: Yeah?
Speaker 14: So we're obviously seeing some calls and interesting even House
Speaker 14: Democrats some calling on Biden saying, look, we really leased.
Speaker 14: Looks like we're trying to negotiate and come to the
Speaker 14: table on this to some degree, And there are some
Speaker 14: calls from others than the Caucus as well, I will
Speaker 14: say it's tricky again as we saw for Republicans, McCarthy
Speaker 14: has a Again, we saw how difficult this was to
Speaker 14: get it over the line, so he doesn't have a
Speaker 14: lot of wiggle room there. And I don't think Republicans
Speaker 14: are going to budge too much on this. But I
Speaker 14: do think as this gets closer again, just reality is
Speaker 14: going to have to set in and no one wants
Speaker 14: to see this happen. The odds of it actually happening
Speaker 14: are very low, but someone does actually need to figure
Speaker 14: out what they're going to do about it before we
Speaker 14: reach that point potentially in June.
Speaker 2: Yeah, I'm wondering how this is going to play out.
Speaker 2: This isn't like the budget where they can take things
Speaker 2: all the way down to the wire then maybe sign
Speaker 2: a CR and kind of stretch it out a little bit.
Speaker 2: This is not how the debt ceiling works. They have
Speaker 2: to get something done ahead of time to give it
Speaker 2: time to get through Congress and to get to the
Speaker 2: President's desk. Are we already out of time? Have they
Speaker 2: been mathematically eliminated? Is there time to get something done
Speaker 2: at this point?
Speaker 13: Yeah?
Speaker 14: I think there is still time. I mean, you know,
Speaker 14: there were some projections that the US wouldn't actually hit
Speaker 14: that default point until almost September. That has gotten moved
Speaker 14: up recently, just as some of the tax revenues came
Speaker 14: a little bit shorter than possible. So I think we're
Speaker 14: still looking at a June window right now. So there
Speaker 14: is still some mogro room. And I guess I would
Speaker 14: say again, this passage, with this bill does kind of
Speaker 14: move things up to the next level. And now it's
Speaker 14: a question of Okay, this is there, we have this
Speaker 14: six weeks. What are we going to do about it?
Speaker 14: And what kinds of deals negotiations can happen to get this,
Speaker 14: to get this through and to get something to get
Speaker 14: something moving on the debt without these massive compromises that
Speaker 14: Democrats aren't going to make either.
Speaker 2: Perhaps they could put together some sort of a coalition
Speaker 2: between the two sides. I mean, what are you going
Speaker 2: to be watching for over the next couple of weeks.
Speaker 14: Yeah, So, I mean we're watching how the White House
Speaker 14: responds to this. I mean within Congress again, I think
Speaker 14: Republicans are clear where they stand in the House. Democrats
Speaker 14: have been clear where they stand in the Senate. So
Speaker 14: it will come to some degree to the White House
Speaker 14: with how this is going to move and so so
Speaker 14: Biden is the one who's really going to have to
Speaker 14: step in and say, I think say when and if
Speaker 14: he's going to negotiate on the other spending measures, and
Speaker 14: if that's going to be enough for McCarthy Republicans.
Speaker 2: You are listening to Bloomberg Daybreak Today, your morning brief
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